Guidance Updated as Coastal Markets Experience Continued Strong Demand and Limited New Supply
CHICAGO–(BUSINESS WIRE)–Equity Residential (NYSE: EQR) today reported results for the quarter and six months ended June 30, 2023.
Second Quarter 2023 Results
All per share results are reported as available to common shares/units on a diluted basis.
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Quarter Ended June 30, |
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2023 |
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2022 |
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$ Change |
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% Change |
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Earnings Per Share (EPS) |
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$ |
0.37 |
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$ |
0.59 |
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$ |
(0.22 |
) |
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(37.3 |
%) |
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Funds from Operations (FFO) per share |
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$ |
0.93 |
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$ |
0.89 |
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$ |
0.04 |
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4.5 |
% |
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Normalized FFO (NFFO) per share |
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$ |
0.94 |
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$ |
0.89 |
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$ |
0.05 |
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5.6 |
% |
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Six Months Ended June 30, |
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2023 |
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2022 |
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$ Change |
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% Change |
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Earnings Per Share (EPS) |
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$ |
0.92 |
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$ |
0.78 |
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$ |
0.14 |
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17.9 |
% |
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Funds from Operations (FFO) per share |
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$ |
1.78 |
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$ |
1.66 |
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$ |
0.12 |
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7.2 |
% |
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Normalized FFO (NFFO) per share |
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$ |
1.82 |
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$ |
1.66 |
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$ |
0.16 |
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9.6 |
% |
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“Same store revenue performance remains strong and in line with our May 2023 guidance increase. The supply picture in the coastal markets where we predominantly operate remains favorable, demand is steady and we see continued progress in mitigating delinquency in Southern California,” said Mark J. Parrell, Equity Residential’s President and CEO. “We also are pleased to again update our guidance as a result of pending favorable refinancing activity as well as second half same store expenses that we anticipate will be lower than previously expected.”
Recent Highlights
- Same store revenue increased 5.5% for the second quarter of 2023 compared to the second quarter of 2022. The Company increased its 2023 annual same store revenue growth guidance midpoint to 5.875% in May 2023.
- Same store expense growth for the second quarter of 2023 compared to the second quarter of 2022 was 5.5%. The Company expects lower same store expense growth in the second half of the year and has lowered its full year same store expense guidance midpoint down 25 basis points to 4.25% from 4.5%.
- The Company lowered its EPS guidance and increased its FFO and Normalized FFO per share guidance as described on page 2.
- In July 2023, the Company locked the interest rate on secured loans totaling $530.0 million, which, subject to customary conditions, are anticipated to close in September 2023. After the effect of the Company’s hedges, the economic rate on these ten-year loans will be approximately 4.7%. The proceeds from these loans will be used, along with funding from the Company’s Commercial Paper Program, to paydown the $800.0 million secured debt pool that matures in November 2023 and carries an interest rate of 4.21%. After this paydown, the Company will have no significant debt maturities, other than commercial paper, until June 2025.
- During the second quarter of 2023, the Company began the lease up of its new 312-unit development in Washington, D.C. The property is expected to stabilize in the third quarter of 2024 at a Development Yield of 5.7%.
Full Year 2023 Guidance
The Company has revised its guidance for its full year 2023 same store operating performance, EPS, FFO per share and Normalized FFO per share as listed below:
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Revised |
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Previous (1) |
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Change at Midpoint |
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Same Store (includes Residential and Non-Residential): |
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Physical Occupancy |
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96.0% |
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96.0% |
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0.0% |
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Revenue change |
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5.5% to 6.25% |
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5.5% to 6.25% |
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0.0% |
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Expense change |
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4.0% to 4.5% |
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4.0% to 5.0% |
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(0.25%) |
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Net Operating Income (NOI) change |
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6.3% to 7.0% |
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6.0% to 7.0% |
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0.15% |
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EPS |
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$1.95 to $2.01 |
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$2.02 to $2.12 |
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$(0.09) |
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FFO per share |
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$3.72 to $3.78 |
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$3.69 to $3.79 |
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$0.01 |
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Normalized FFO per share |
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$3.77 to $3.83 |
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$3.73 to $3.83 |
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$0.02 |
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(1) Represents the updated guidance provided in the Company’s May 30, 2023 press release. |
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The change in the full year 2023 EPS guidance range is due primarily to higher expected depreciation expense, lower expected property sale gains and the items described below.
The change in the full year 2023 FFO per share guidance range is due primarily to higher expected other expenses and the items described below.
The change in the full year 2023 Normalized FFO per share guidance range is due primarily to:
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Positive/(Negative) |
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Revised Full Year 2023 vs. |
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Residential same store NOI |
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$ |
0.01 |
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Interest expense, net |
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0.02 |
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Other items |
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(0.01 |
) |
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Net |
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$ |
0.02 |
|
The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 29 through 34 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 7, 31 and 32 of this release.
Results Per Share
The changes in EPS for the quarter and six months ended June 30, 2023 compared to the same periods of 2022 are due primarily to lower property sale gains and lower depreciation expense in the current period, the various adjustment items listed on page 27 of this release and the items described below.
The per share changes in FFO for the quarter and six months ended June 30, 2023 compared to the same periods of 2022 are due primarily to the various adjustment items listed on page 27 of this release and the items described below.
The per share changes in Normalized FFO are due primarily to:
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Positive/(Negative) Impact |
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Second Quarter 2023 vs. |
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June YTD 2023 vs. |
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Residential same store NOI |
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$ |
0.06 |
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$ |
0.17 |
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Lease-Up NOI |
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0.01 |
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0.02 |
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2023 and 2022 transaction activity impact on NOI, net |
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(0.01 |
) |
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(0.02 |
) |
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Interest expense, net |
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0.01 |
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0.03 |
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Corporate overhead (1) |
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(0.02 |
) |
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(0.01 |
) |
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Other items (2) |
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– |
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(0.03 |
) |
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Net |
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$ |
0.05 |
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$ |
0.16 |
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(1) |
Corporate overhead includes property management and general and administrative expenses. |
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(2) |
Primarily represents the negative impact from property damage associated with the California rain storms that occurred earlier this year. |
Same Store Results
The following table shows the total same store results for the periods presented.
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Second Quarter 2023 vs. |
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Second Quarter 2023 vs. |
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June YTD 2023 vs. |
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Apartment Units |
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77,545 |
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78,531 |
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76,952 |
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Physical Occupancy |
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95.9% vs. 96.7% |
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95.9% vs. 95.9% |
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95.9% vs. 96.6% |
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Revenues |
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5.5% |
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1.7% |
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7.3% |
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Expenses |
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5.5% |
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(4.3%) |
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6.4% |
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NOI |
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5.4% |
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4.7% |
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7.7% |
On page 11 of this release, the Company has provided a breakout of Residential and Non-Residential same store results with definitions that can be found on page 33 of this release. Non-Residential operations account for approximately 3.8% of total revenues for the six months ended June 30, 2023.
The following table reflects the detail of the change in Same Store Residential Revenues, which is presented on a GAAP basis showing Leasing Concessions on a straight-line basis.
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Second Quarter 2023 vs. |
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Second Quarter 2023 vs. |
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June YTD 2023 vs. |
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% Change |
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% Change |
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% Change |
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Same Store Residential Revenues- |
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comparable period |
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Lease rates |
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7.3 |
% |
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1.1 |
% |
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8.2 |
% |
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Leasing Concessions |
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(0.1 |
%) |
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(0.1 |
%) |
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0.1 |
% |
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Vacancy gain (loss) |
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(0.9 |
%) |
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(0.1 |
%) |
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(0.8 |
%) |
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Bad Debt, Net (1) |
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(1.6 |
%) |
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0.3 |
% |
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(0.9 |
%) |
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Other (2) |
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0.8 |
% |
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0.6 |
% |
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0.7 |
% |
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Same Store Residential Revenues- |
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current period |
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5.5 |
% |
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1.8 |
% |
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7.3 |
% |
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(1) |
Change in rental income due to bad debt write-offs and reserves, net of amounts (including governmental rental assistance payments) collected on previously written-off or reserved accounts. Comparable period changes in quarterly Bad Debt, Net will be volatile throughout 2023 primarily due to the timing of governmental rental assistance received in 2022. See page 13 for more detail. |
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(2) |
Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items. |
See page 12 for detail and reconciliations of Same Store Residential Revenues on a GAAP basis to Same Store Residential Revenues with Leasing Concessions on a cash basis.
Residential Same Store Operating Statistics
The following table includes select operating metrics for Residential Same Store Properties (for 76,952 same store apartment units):
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July 2023 (1) |
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Q2 2023 |
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Q1 2023 |
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Physical Occupancy |
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95.8% |
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95.9% |
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95.9% |
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Percentage of Residents Renewing by quarter/month |
54.0% |
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57.0% |
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59.0% |
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New Lease Change |
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2.2% |
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2.3% |
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1.3% |
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Renewal Rate Achieved |
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5.9% |
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5.9% |
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6.1% |
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Blended Rate |
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4.2% |
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4.3% |
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3.9% |
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(1) July 2023 results are preliminary. |
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Investment Activity
The Company acquired two operating properties during the second quarter of 2023 – a recently completed 262-unit apartment property in Atlanta, which is currently in lease up, for approximately $78.6 million at a stabilized Acquisition Cap Rate of 6.6% (5.7% when removing certain real estate tax benefits that will reduce over time) and a 287-unit property in suburban Denver built in 2022, for approximately $108.0 million at an Acquisition Cap Rate of 5.0%. The Company did not acquire any properties during the first quarter of 2023.
The Company did not sell any properties during the second quarter of 2023. During the first quarter of 2023, the Company sold a small portfolio of seven properties in Los Angeles with an average age of 25 years, consisting of 247 apartment units, for an aggregate sale price of approximately $135.3 million at a weighted average Disposition Yield of 5.3%, generating an Unlevered IRR of 8.7%.
Capital Markets Activity
In July 2023, the Company locked the interest rate on secured loans totaling $530.0 million, which, subject to customary conditions, are anticipated to close in September 2023. After the effect of the Company’s hedges, the economic rate on these ten-year loans will be approximately 4.7%. The proceeds from these loans will be used, along with funding from the Company’s Commercial Paper Program, to paydown the $800.0 million secured debt pool that matures in November 2023 and carries an interest rate of 4.21%. After this paydown, the Company will have no significant debt maturities, other than commercial paper supported by its revolving credit facility due in 2027, until June 2025.
Third Quarter 2023 Guidance
The Company has established guidance ranges for the third quarter of 2023 EPS, FFO per share and Normalized FFO per share as listed below:
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Q3 2023 |
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EPS |
|
$0.59 to $0.63 |
|
FFO per share |
|
$0.94 to $0.98 |
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Normalized FFO per share |
|
$0.95 to $0.99 |
The difference between the second quarter of 2023 actual EPS of $0.37 and the third quarter of 2023 EPS guidance midpoint of $0.61 is due primarily to higher expected property sale gains and the items described below.
The difference between the second quarter of 2023 actual FFO of $0.93 per share and the third quarter of 2023 FFO guidance midpoint of $0.96 per share is due primarily to the items described below.
The difference between the second quarter of 2023 actual Normalized FFO of $0.94 per share and the third quarter of 2023 Normalized FFO guidance midpoint of $0.97 per share is due primarily to:
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Positive/(Negative) |
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Third Quarter 2023 vs. |
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Residential same store NOI |
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$ |
0.01 |
|
|
Corporate overhead |
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|
0.02 |
|
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Net |
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$ |
0.03 |
|
About Equity Residential
Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. Equity Residential owns or has investments in 304 properties consisting of 80,212 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin. For more information on Equity Residential, please visit our website at www.equityapartments.com.
Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential’s management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, government regulations and competition. These and other risks and uncertainties are described under the heading “Risk Factors” in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityapartments.com. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
A live web cast of the Company’s conference call discussing these results will take place tomorrow, Friday, July 28, 2023 at 10:00 a.m. CT. Please visit the Investor section of the Company’s website at www.equityapartments.com for the webcast link.
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Equity Residential Consolidated Statements of Operations (Amounts in thousands except per share data) (Unaudited) |
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Six Months Ended June 30, |
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Quarter Ended June 30, |
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2023 |
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2022 |
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2023 |
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2022 |
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REVENUES |
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Rental income |
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$ |
1,422,397 |
|
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$ |
1,340,378 |
|
|
$ |
717,309 |
|
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$ |
687,030 |
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EXPENSES |
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|
Property and maintenance |
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262,350 |
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|
241,229 |
|
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|
124,771 |
|
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|
116,355 |
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Real estate taxes and insurance |
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209,749 |
|
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|
202,538 |
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|
103,080 |
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|
|
101,850 |
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Property management |
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|
62,145 |
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|
57,306 |
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|
30,679 |
|
|
|
26,559 |
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General and administrative |
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|
35,041 |
|
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|
33,661 |
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|
|
18,876 |
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|
16,423 |
|
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Depreciation |
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|
437,185 |
|
|
|
453,767 |
|
|
|
221,355 |
|
|
|
223,806 |
|
|
Total expenses |
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1,006,470 |
|
|
|
988,501 |
|
|
|
498,761 |
|
|
|
484,993 |
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|
Net gain (loss) on sales of real estate properties |
|
|
100,122 |
|
|
|
107,795 |
|
|
|
(87 |
) |
|
|
107,897 |
|
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Operating income |
|
|
516,049 |
|
|
|
459,672 |
|
|
|
218,461 |
|
|
|
309,934 |
|
|
|
|
|
|
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Interest and other income |
|
|
3,669 |
|
|
|
4,124 |
|
|
|
2,131 |
|
|
|
596 |
|
|
Other expenses |
|
|
(15,559 |
) |
|
|
(5,436 |
) |
|
|
(6,564 |
) |
|
|
(2,380 |
) |
|
Interest: |
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|
|
|
|
|
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|
|
|
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|
Expense incurred, net |
|
|
(131,991 |
) |
|
|
(144,681 |
) |
|
|
(65,590 |
) |
|
|
(71,889 |
) |
|
Amortization of deferred financing costs |
|
|
(3,996 |
) |
|
|
(4,201 |
) |
|
|
(2,017 |
) |
|
|
(2,124 |
) |
|
Income before income and other taxes, income (loss) from |
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investments in unconsolidated entities and net gain (loss) |
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on sales of land parcels |
|
|
368,172 |
|
|
|
309,478 |
|
|
|
146,421 |
|
|
|
234,137 |
|
|
Income and other tax (expense) benefit |
|
|
(634 |
) |
|
|
(573 |
) |
|
|
(336 |
) |
|
|
(291 |
) |
|
Income (loss) from investments in unconsolidated entities |
|
|
(2,605 |
) |
|
|
(2,429 |
) |
|
|
(1,223 |
) |
|
|
(1,168 |
) |
|
Net income |
|
|
364,933 |
|
|
|
306,476 |
|
|
|
144,862 |
|
|
|
232,678 |
|
|
Net (income) loss attributable to Noncontrolling Interests: |
|
|
|
|
|
|
|
|
|
|
|
|
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|
Operating Partnership |
|
|
(11,613 |
) |
|
|
(10,027 |
) |
|
|
(4,554 |
) |
|
|
(7,633 |
) |
|
Partially Owned Properties |
|
|
(2,082 |
) |
|
|
(1,583 |
) |
|
|
(1,105 |
) |
|
|
(944 |
) |
|
Net income attributable to controlling interests |
|
|
351,238 |
|
|
|
294,866 |
|
|
|
139,203 |
|
|
|
224,101 |
|
|
Preferred distributions |
|
|
(1,545 |
) |
|
|
(1,545 |
) |
|
|
(773 |
) |
|
|
(773 |
) |
|
Net income available to Common Shares |
|
$ |
349,693 |
|
|
$ |
293,321 |
|
|
$ |
138,430 |
|
|
$ |
223,328 |
|
|
|
|
|
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Earnings per share – basic: |
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|
|
|
|
|
|
|
|
|
|
||||
|
Net income available to Common Shares |
|
$ |
0.92 |
|
|
$ |
0.78 |
|
|
$ |
0.37 |
|
|
$ |
0.59 |
|
|
Weighted average Common Shares outstanding |
|
|
378,492 |
|
|
|
375,640 |
|
|
|
378,642 |
|
|
|
375,769 |
|
|
|
|
|
|
|
|
|
|
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||||
|
Earnings per share – diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net income available to Common Shares |
|
$ |
0.92 |
|
|
$ |
0.78 |
|
|
$ |
0.37 |
|
|
$ |
0.59 |
|
|
Weighted average Common Shares outstanding |
|
|
391,063 |
|
|
|
389,463 |
|
|
|
391,187 |
|
|
|
389,363 |
|
|
|
|
|
|
|
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||||
|
Distributions declared per Common Share outstanding |
|
$ |
1.325 |
|
|
$ |
1.25 |
|
|
$ |
0.6625 |
|
|
$ |
0.625 |
|
|
Equity Residential Consolidated Statements of Funds From Operations and Normalized Funds From Operations (Amounts in thousands except per share and Unit data) (Unaudited) |
||||||||||||||||
|
|
|
Six Months Ended June 30, |
|
Quarter Ended June 30, |
||||||||||||
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
Net income |
|
$ |
364,933 |
|
|
$ |
306,476 |
|
|
$ |
144,862 |
|
|
$ |
232,678 |
|
|
Net (income) loss attributable to Noncontrolling Interests – Partially |
||||||||||||||||
|
Owned Properties |
|
(2,082 |
) |
|
|
(1,583 |
) |
|
|
(1,105 |
) |
|
|
(944 |
) |
|
|
Preferred distributions |
|
|
(1,545 |
) |
|
|
(1,545 |
) |
|
|
(773 |
) |
|
|
(773 |
) |
|
Net income available to Common Shares and Units |
|
|
361,306 |
|
|
|
303,348 |
|
|
|
142,984 |
|
|
|
230,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Depreciation |
|
|
437,185 |
|
|
|
453,767 |
|
|
|
221,355 |
|
|
|
223,806 |
|
|
Depreciation – Non-real estate additions |
|
|
(2,259 |
) |
|
|
(2,114 |
) |
|
|
(1,103 |
) |
|
|
(1,062 |
) |
|
Depreciation – Partially Owned Properties |
|
|
(1,055 |
) |
|
|
(1,554 |
) |
|
|
(510 |
) |
|
|
(661 |
) |
|
Depreciation – Unconsolidated Properties |
|
|
1,226 |
|
|
|
1,240 |
|
|
|
594 |
|
|
|
620 |
|
|
Net (gain) loss on sales of unconsolidated entities – operating |
||||||||||||||||
|
assets |
|
|
— |
|
|
|
(9 |
) |
|
|
— |
|
|
|
— |
|
|
Net (gain) loss on sales of real estate properties |
|
|
(100,122 |
) |
|
|
(107,795 |
) |
|
|
87 |
|
|
|
(107,897 |
) |
|
FFO available to Common Shares and Units |
|
|
696,281 |
|
|
|
646,883 |
|
|
|
363,407 |
|
|
|
345,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Adjustments (see note for additional detail): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Write-off of pursuit costs |
|
|
1,993 |
|
|
|
2,515 |
|
|
|
661 |
|
|
|
1,052 |
|
|
Debt extinguishment and preferred share redemption (gains) |
||||||||||||||||
|
losses |
|
|
47 |
|
|
|
469 |
|
|
|
47 |
|
|
|
469 |
|
|
Non-operating asset (gains) losses |
|
|
1,031 |
|
|
|
(1,330 |
) |
|
|
317 |
|
|
|
312 |
|
|
Other miscellaneous items |
|
|
11,343 |
|
|
|
(185 |
) |
|
|
5,051 |
|
|
|
186 |
|
|
Normalized FFO available to Common Shares and Units |
|
$ |
710,695 |
|
|
$ |
648,352 |
|
|
$ |
369,483 |
|
|
$ |
347,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
FFO |
|
$ |
697,826 |
|
|
$ |
648,428 |
|
|
$ |
364,180 |
|
|
$ |
346,540 |
|
|
Preferred distributions |
|
|
(1,545 |
) |
|
|
(1,545 |
) |
|
|
(773 |
) |
|
|
(773 |
) |
|
FFO available to Common Shares and Units |
|
$ |
696,281 |
|
|
$ |
646,883 |
|
|
$ |
363,407 |
|
|
$ |
345,767 |
|
|
FFO per share and Unit – basic |
|
$ |
1.79 |
|
|
$ |
1.67 |
|
|
$ |
0.93 |
|
|
$ |
0.89 |
|
|
FFO per share and Unit – diluted |
|
$ |
1.78 |
|
|
$ |
1.66 |
|
|
$ |
0.93 |
|
|
$ |
0.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Normalized FFO |
|
$ |
712,240 |
|
|
$ |
649,897 |
|
|
$ |
370,256 |
|
|
$ |
348,559 |
|
|
Preferred distributions |
|
|
(1,545 |
) |
|
|
(1,545 |
) |
|
|
(773 |
) |
|
|
(773 |
) |
|
Normalized FFO available to Common Shares and Units |
|
$ |
710,695 |
|
|
$ |
648,352 |
|
|
$ |
369,483 |
|
|
$ |
347,786 |
|
|
Normalized FFO per share and Unit – basic |
|
$ |
1.82 |
|
|
$ |
1.67 |
|
|
$ |
0.95 |
|
|
$ |
0.90 |
|
|
Normalized FFO per share and Unit – diluted |
|
$ |
1.82 |
|
|
$ |
1.66 |
|
|
$ |
0.94 |
|
|
$ |
0.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Weighted average Common Shares and Units outstanding – basic |
|
|
389,942 |
|
|
|
387,531 |
|
|
|
390,032 |
|
|
|
387,664 |
|
|
Weighted average Common Shares and Units outstanding – diluted |
|
391,063 |
|
|
|
389,463 |
|
|
|
391,187 |
|
|
|
389,363 |
|
|
Note: See Adjustments from FFO to Normalized FFO for additional detail regarding the adjustments from FFO to Normalized FFO. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.
|
Equity Residential Consolidated Balance Sheets (Amounts in thousands except for share amounts) (Unaudited) |
||||||||
|
|
|
June 30, |
|
December 31, |
||||
|
|
|
2023 |
|
2022 |
||||
|
ASSETS |
|
|
|
|
|
|
||
|
Land |
|
$ |
5,579,211 |
|
|
$ |
5,580,878 |
|
|
Depreciable property |
|
|
22,697,597 |
|
|
|
22,334,369 |
|
|
Projects under development |
|
|
50,916 |
|
|
|
112,940 |
|
|
Land held for development |
|
|
61,334 |
|
|
|
60,567 |
|
|
Investment in real estate |
|
|
28,389,058 |
|
|
|
28,088,754 |
|
|
Accumulated depreciation |
|
|
(9,428,549 |
) |
|
|
(9,027,850 |
) |
|
Investment in real estate, net |
|
|
18,960,509 |
|
|
|
19,060,904 |
|
|
Investments in unconsolidated entities1 |
|
|
304,710 |
|
|
|
279,024 |
|
|
Cash and cash equivalents |
|
|
35,701 |
|
|
|
53,869 |
|
|
Restricted deposits |
|
|
88,941 |
|
|
|
83,303 |
|
|
Right-of-use assets |
|
|
463,704 |
|
|
|
462,956 |
|
|
Other assets |
|
|
292,164 |
|
|
|
278,206 |
|
|
Total assets |
|
$ |
20,145,729 |
|
|
$ |
20,218,262 |
|
|
|
|
|
|
|
|
|
||
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
|
Liabilities: |
|
|
|
|
|
|
||
|
Mortgage notes payable, net |
|
$ |
1,913,069 |
|
|
$ |
1,953,438 |
|
|
Notes, net |
|
|
5,345,373 |
|
|
|
5,342,329 |
|
|
Line of credit and commercial paper |
|
|
184,474 |
|
|
|
129,955 |
|
|
Accounts payable and accrued expenses |
|
|
118,316 |
|
|
|
96,028 |
|
|
Accrued interest payable |
|
|
66,238 |
|
|
|
66,310 |
|
|
Lease liabilities |
|
|
313,866 |
|
|
|
308,748 |
|
|
Other liabilities |
|
|
294,263 |
|
|
|
306,941 |
|
|
Security deposits |
|
|
69,427 |
|
|
|
68,940 |
|
|
Distributions payable |
|
|
258,841 |
|
|
|
244,621 |
|
|
Total liabilities |
|
|
8,563,867 |
|
|
|
8,517,310 |
|
|
|
|
|
|
|
|
|
||
|
Commitments and contingencies |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
Redeemable Noncontrolling Interests – Operating Partnership |
|
|
355,319 |
|
|
|
318,273 |
|
|
Equity: |
|
|
|
|
|
|
||
|
Shareholders’ equity: |
|
|
|
|
|
|
||
|
Preferred Shares of beneficial interest, $0.01 par value; |
||||||||
|
100,000,000 shares authorized; 745,600 shares issued and |
||||||||
|
outstanding as of June 30, 2023 and December 31, 2022 |
|
|
37,280 |
|
|
|
37,280 |
|
|
Common Shares of beneficial interest, $0.01 par value; |
||||||||
|
1,000,000,000 shares authorized; 379,032,722 shares issued |
||||||||
|
and outstanding as of June 30, 2023 and 378,429,708 |
||||||||
|
shares issued and outstanding as of December 31, 2022 |
|
|
3,790 |
|
|
|
3,784 |
|
|
Paid in capital |
|
|
9,472,628 |
|
|
|
9,476,085 |
|
|
Retained earnings |
|
|
1,506,460 |
|
|
|
1,658,837 |
|
|
Accumulated other comprehensive income (loss) |
|
|
3,708 |
|
|
|
(2,547 |
) |
|
Total shareholders’ equity |
|
|
11,023,866 |
|
|
|
11,173,439 |
|
|
Noncontrolling Interests: |
|
|
|
|
|
|
||
|
Operating Partnership |
|
|
207,405 |
|
|
|
209,961 |
|
|
Partially Owned Properties |
|
|
(4,728 |
) |
|
|
(721 |
) |
|
Total Noncontrolling Interests |
|
|
202,677 |
|
|
|
209,240 |
|
|
Total equity |
|
|
11,226,543 |
|
|
|
11,382,679 |
|
|
Total liabilities and equity |
|
$ |
20,145,729 |
|
|
$ |
20,218,262 |
|
|
1 Includes $242.4 million and $218.0 million in unconsolidated development projects as of June 30, 2023 and December 31, 2022, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects. |
||||||||
|
Equity Residential Portfolio Summary As of June 30, 2023 |
|
|
|
|
|
|
|
|
|
% of |
|
Average |
||||||
|
|
|
|
|
|
Apartment |
|
Budgeted |
|
Rental |
|||||||
|
Markets/Metro Areas |
|
Properties |
|
Units |
|
NOI |
|
Rate |
||||||||
|
Established Markets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Los Angeles |
|
|
59 |
|
|
|
15,012 |
|
|
|
17.7 |
% |
|
$ |
2,876 |
|
|
Orange County |
|
|
13 |
|
|
|
4,028 |
|
|
|
5.2 |
% |
|
|
2,787 |
|
|
San Diego |
|
|
12 |
|
|
|
2,878 |
|
|
|
4.0 |
% |
|
|
2,997 |
|
|
Subtotal – Southern California |
|
|
84 |
|
|
|
21,918 |
|
|
|
26.9 |
% |
|
|
2,875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
San Francisco |
|
|
44 |
|
|
|
11,790 |
|
|
|
15.8 |
% |
|
|
3,285 |
|
|
Washington, D.C. |
|
|
48 |
|
|
|
15,028 |
|
|
|
15.6 |
% |
|
|
2,592 |
|
|
New York |
|
|
34 |
|
|
|
8,536 |
|
|
|
13.9 |
% |
|
|
4,488 |
|
|
Boston |
|
|
27 |
|
|
|
7,170 |
|
|
|
11.5 |
% |
|
|
3,477 |
|
|
Seattle |
|
|
46 |
|
|
|
9,526 |
|
|
|
11.0 |
% |
|
|
2,587 |
|
|
Subtotal – Established Markets |
|
|
283 |
|
|
|
73,968 |
|
|
|
94.7 |
% |
|
|
3,092 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Expansion Markets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Denver |
|
|
9 |
|
|
|
2,785 |
|
|
|
2.8 |
% |
|
|
2,417 |
|
|
Atlanta |
|
|
5 |
|
|
|
1,477 |
|
|
|
1.4 |
% |
|
|
2,196 |
|
|
Dallas/Ft. Worth |
|
|
4 |
|
|
|
1,241 |
|
|
|
0.7 |
% |
|
|
1,875 |
|
|
Austin |
|
|
3 |
|
|
|
741 |
|
|
|
0.4 |
% |
|
|
1,831 |
|
|
Subtotal – Expansion Markets |
|
|
21 |
|
|
|
6,244 |
|
|
|
5.3 |
% |
|
|
2,189 |
|
|
Total |
|
|
304 |
|
|
|
80,212 |
|
|
|
100.0 |
% |
|
$ |
3,022 |
|
|
|
|
Properties |
|
Apartment Units |
|
Wholly Owned Properties |
|
289 |
|
76,986 |
|
Partially Owned Properties – Consolidated |
|
15 |
|
3,226 |
|
|
|
304 |
|
80,212 |
|
Note: Projects under development are not included in the Portfolio Summary until construction has been completed. |
||||
|
Equity Residential |
|
Portfolio Rollforward Q2 2023 ($ in thousands) |
||||||||||||||||
|
|
|
Properties |
|
Apartment |
|
Purchase |
|
Acquisition |
||||||||
|
|
3/31/2023 |
|
301 |
|
|
|
79,351 |
|
|
|
|
|
|
|
||
|
Acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Consolidated Rental Properties |
|
|
1 |
|
|
|
287 |
|
|
$ |
108,000 |
|
|
|
5.0 |
% |
|
Consolidated Rental Properties – Not Stabilized (1) |
|
|
1 |
|
|
|
262 |
|
|
$ |
78,600 |
|
|
|
6.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Completed Developments – Consolidated |
|
|
1 |
|
|
|
312 |
|
|
|
|
|
|
|
||
|
|
6/30/2023 |
|
304 |
|
|
|
80,212 |
|
|
|
|
|
|
|
||
|
Portfolio Rollforward 2023 ($ in thousands) |
||||||||||||||||
|
|
|
Properties |
|
Apartment |
|
Purchase |
|
Acquisition |
||||||||
|
|
12/31/2022 |
|
308 |
|
|
|
79,597 |
|
|
|
|
|
|
|
||
|
Acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Consolidated Rental Properties |
|
|
1 |
|
|
|
287 |
|
|
$ |
108,000 |
|
|
|
5.0 |
% |
|
Consolidated Rental Properties – Not Stabilized (1) |
|
|
1 |
|
|
|
262 |
|
|
$ |
78,600 |
|
|
|
6.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
Sales Price |
|
Disposition |
||||||
|
Dispositions: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Consolidated Rental Properties |
|
|
(7 |
) |
|
|
(247 |
) |
|
$ |
(135,300 |
) |
|
|
(5.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Completed Developments – Consolidated |
|
|
1 |
|
|
|
312 |
|
|
|
|
|
|
|
||
|
Configuration Changes |
|
|
— |
|
|
|
1 |
|
|
|
|
|
|
|
||
|
|
6/30/2023 |
|
304 |
|
|
|
80,212 |
|
|
|
|
|
|
|
||
Contacts
Marty McKenna
312-928-1901
[email protected]
