Strong Performance Driven by Healthy Demand During the Primary Leasing Season
Equity Residential (NYSE: EQR) today reported results for the quarter and nine months ended September 30, 2022 and has posted a Q3 2022 Management Presentation to its website as referenced below.
Third Quarter 2022 Results
All per share results are reported as available to common shares/units on a diluted basis.
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Quarter Ended September 30, |
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2022 |
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2021 |
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$ Change |
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% Change |
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Earnings Per Share (EPS) |
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$ |
0.86 |
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$ |
1.15 |
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$ |
(0.29 |
) |
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(25.2 |
%) |
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Funds from Operations (FFO) per share |
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$ |
0.90 |
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$ |
0.76 |
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$ |
0.14 |
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18.4 |
% |
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Normalized FFO per share |
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$ |
0.92 |
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$ |
0.77 |
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$ |
0.15 |
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19.5 |
% |
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Nine Months Ended September 30, |
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2022 |
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2021 |
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$ Change |
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% Change |
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Earnings Per Share (EPS) |
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$ |
1.63 |
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$ |
2.14 |
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$ |
(0.51 |
) |
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(23.8 |
%) |
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Funds from Operations (FFO) per share |
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$ |
2.56 |
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$ |
2.21 |
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$ |
0.35 |
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15.8 |
% |
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Normalized FFO per share |
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$ |
2.58 |
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$ |
2.17 |
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$ |
0.41 |
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18.9 |
% |
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“Our affluent resident base remains well employed with growing incomes, creating strong demand to live in our desirable properties and driving outstanding financial results this quarter. Demand remains solid, albeit with slightly more price sensitivity in San Francisco and Seattle than we expected,” said Mark J. Parrell, Equity Residential’s President and CEO. “The substantial embedded growth in our rent roll and our financially resilient and highly employable resident base leaves us well positioned to deliver above average results in 2023 despite likely macroeconomic turbulence. Longer term, we will continue to benefit from trends such as high single family housing costs, favorable demographics and an overall deficit in housing across the country.”
Recent Highlights
- The Company reported an 11.8% increase in same store revenue for the third quarter of 2022 compared to the same period of 2021, driven by healthy demand during the primary leasing season. Moderate same store expense growth of 3.5% continued to be driven by favorable real estate tax and payroll expenses.
- The Company now expects its full year 2022 same store revenue growth to be approximately 10.6%, slightly above its prior midpoint, and has adjusted various guidance ranges as further described in this release and in the Management Presentation referenced below.
- The Company sold two properties during the quarter for a total sale price of $480.5 million and used the proceeds to pay down $500.0 million in debt due in 2023.
- The Company recently published its ninth annual Environmental, Social and Governance (ESG) report highlighting Equity Residential’s goals and accomplishments.
Full Year 2022 Guidance
The Company has revised its guidance for its full year 2022 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 |
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Change at Midpoint |
Same Store (includes Residential and Non-Residential): |
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||
Physical Occupancy |
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96.4% |
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96.5% |
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(0.1%) |
Revenue change |
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10.6% |
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10.0% to 11.0% |
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0.1% |
Expense change |
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3.3% |
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2.5% to 3.5% |
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0.3% |
NOI change |
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14.25% |
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13.75% to 14.75% |
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0.0% |
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EPS |
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$2.02 to $2.04 |
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$1.98 to $2.08 |
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$0.00 |
FFO per share |
|
$3.49 to $3.51 |
|
$3.45 to $3.55 |
|
$0.00 |
Normalized FFO per share |
|
$3.52 to $3.54 |
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$3.48 to $3.58 |
|
$0.00 |
The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 28 through 33 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 6, 30 and 31 of this release.
Results Per Share
The changes in EPS for the quarter and nine months ended September 30, 2022 compared to the same periods of 2021 are due primarily to lower property sale gains and higher depreciation expense in the current periods, offset by the various adjustment items listed on page 26 of this release and the items described below.
The per share changes in FFO for the quarter and nine months ended September 30, 2022 compared to the same periods of 2021 are due primarily to the various adjustment items listed on page 26 of this release and the items described below.
The per share changes in Normalized FFO are due primarily to:
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Positive/(Negative) Impact |
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Third Quarter 2022 vs.
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September YTD 2022 vs.
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Residential same store NOI |
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$ |
0.16 |
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$ |
0.43 |
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Non-Residential same store NOI |
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– |
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0.01 |
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Lease-Up NOI |
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0.02 |
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0.04 |
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2022 and 2021 transaction activity impact on NOI, net |
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(0.01 |
) |
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0.01 |
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Interest expense, net |
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– |
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(0.03 |
) |
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Corporate overhead (1) |
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(0.01 |
) |
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(0.03 |
) |
Other items |
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(0.01 |
) |
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(0.02 |
) |
Net |
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$ |
0.15 |
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$ |
0.41 |
|
(1) |
Corporate overhead includes property management and general and administrative expenses. |
Same Store Results
The following table shows the total same store results for the periods presented.
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Third Quarter 2022 vs.
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Third Quarter 2022 vs.
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September YTD 2022 vs.
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Apartment Units |
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73,402 |
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77,788 |
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72,869 |
Physical Occupancy |
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96.5% vs. 96.6% |
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96.4% vs. 96.7% |
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96.5% vs. 95.9% |
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Revenues |
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11.8% |
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2.1% |
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11.1% |
Expenses |
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3.5% |
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4.6% |
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3.0% |
NOI |
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16.2% |
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0.9% |
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15.3% |
On page 10 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 32 of this release. Non-Residential operations account for approximately 3.7% of total revenues for the nine months ended September 30, 2022.
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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Third Quarter 2022 vs.
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Third Quarter 2022 vs.
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September YTD 2022 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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10.8 |
% |
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3.6 |
% |
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7.8 |
% |
Leasing Concessions |
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1.7 |
% |
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0.1 |
% |
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1.7 |
% |
Vacancy gain (loss) |
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(0.7 |
%) |
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(0.6 |
%) |
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0.2 |
% |
Bad Debt, Net (1) |
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(0.3 |
%) |
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(1.2 |
%) |
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0.9 |
% |
Other (2) |
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0.6 |
% |
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0.2 |
% |
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0.6 |
% |
Same Store Residential Revenues- |
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current period |
12.1 |
% |
|
2.1 |
% |
|
11.2 |
% |
(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. The negative contributions to revenue growth in the quarter and sequentially in this category are due to lower resident payments from governmental rental assistance as the programs wind down. |
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(2) |
Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items. |
See page 11 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 72,869 same store apartment units):
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|
Q2 2022 |
|
Q3 2022 |
|
October 2022 (1) |
Physical Occupancy |
|
96.7% |
|
96.5% |
|
96.2% |
Percentage of Residents Renewing by quarter/month |
56.3% |
|
53.8% |
|
56.0% |
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New Lease Change |
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19.1% |
|
13.0% |
|
5.3% |
Renewal Rate Achieved |
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11.2% |
|
10.0% |
|
8.9% |
Blended Rate |
|
14.8% |
|
11.3% |
|
7.4% |
(1) |
October 2022 results are preliminary. October 2022 operating metrics are generally consistent with the Company's expectations and are being driven by a more challenging 2021 comparable period and slightly greater price sensitivity in Seattle and San Francisco. |
Investment Activity
The Company did not acquire any operating properties during the third quarter of 2022 but did enter into separate unconsolidated joint ventures to develop vacant land parcels in Frisco, Texas (further described below) and suburban Boston at a total cost of approximately $56.9 million. During the first nine months of 2022, the Company acquired a 172-unit apartment property in San Diego, built in 2020, for $113.0 million at an Acquisition Cap Rate of 3.5% as well as the two land parcels discussed above.
During the third quarter of 2022, the Company sold a 455-unit apartment property in New York, built in 2001, for $415.0 million at a Disposition Yield of 3.4%, and a 136-unit apartment property in Washington, D.C., built in 1962, for $65.5 million at a Disposition Yield of 4.3%. These two asset sales generated an Unlevered IRR of 4.6%. During the first nine months of 2022, the Company sold three properties for a total sale price of approximately $746.2 million at a weighted average Disposition Yield of 3.4%, generating an Unlevered IRR of 5.3%.
Also during the third quarter of 2022, the Company began activity on two unconsolidated projects as part of its joint venture with Toll Brothers. The Company began construction on Lyle, a 334-unit apartment property in Dallas, Texas and entered into a joint venture on Remy, a 357-unit apartment property in Frisco, Texas that began construction in the first quarter of 2022.
Capital Markets Activity
In August 2022, the Company used proceeds from the property sales described above and cash on hand to redeem at par its $500.0 million in 3.0% unsecured notes originally due to mature in April 2023, substantially reducing its 2023 maturities. In conjunction with the redemption, the Company recorded $3.8 million in non-cash write-offs of unamortized debt discounts and deferred financing costs which are not included in Normalized FFO.
In October 2022, the Company settled all of its outstanding forward equity sales agreements under its At-The-Market (ATM) share offering program, which were entered into during the third quarter of 2021. As a result, it issued 1,740,550 common shares at $80.22 per share and received total proceeds of approximately $139.6 million.
Fourth Quarter 2022 Guidance
The Company has established guidance ranges for the fourth quarter of 2022 EPS, FFO per share and Normalized FFO per share as listed below:
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|
Q4 2022
|
EPS |
|
$0.39 to $0.41 |
FFO per share |
|
$0.93 to $0.95 |
Normalized FFO per share |
|
$0.94 to $0.96 |
The difference between the third quarter of 2022 actual EPS of $0.86 and the fourth quarter of 2022 EPS guidance midpoint of $0.40 is due primarily to lower expected property sale gains, partially offset by higher expected Residential same store NOI.
The difference between the third quarter of 2022 actual FFO of $0.90 per share and the fourth quarter of 2022 FFO guidance midpoint of $0.94 per share is due primarily to higher expected Residential same store NOI.
The difference between the third quarter of 2022 actual Normalized FFO of $0.92 per share and the fourth quarter of 2022 Normalized FFO guidance midpoint of $0.95 per share is due primarily to higher expected Residential same store NOI.
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 308 properties consisting of 79,594 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, competition and government regulation. In addition, these forward-looking statements are subject to risks related to the COVID-19 pandemic. 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, Wednesday, October 26, 2022 at 10:00 a.m. CT. In connection with the conference call, the Company is also providing a Management Presentation on its website. Please visit the Investor section of the Company’s website at www.equityapartments.com for the webcast link and the presentation.
Equity Residential Consolidated Statements of Operations (Amounts in thousands except per share data) (Unaudited) |
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Nine Months Ended September 30, |
|
Quarter Ended September 30, |
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2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
REVENUES |
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|
||||
Rental income |
|
$ |
2,035,477 |
|
|
$ |
1,818,867 |
|
|
$ |
695,099 |
|
|
$ |
623,206 |
|
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|
|
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|
|
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|
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EXPENSES |
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|
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|
|
|
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|
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Property and maintenance |
|
|
365,277 |
|
|
|
341,261 |
|
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|
124,048 |
|
|
|
116,461 |
|
Real estate taxes and insurance |
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|
302,899 |
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|
297,780 |
|
|
|
100,361 |
|
|
|
96,909 |
|
Property management |
|
|
83,035 |
|
|
|
74,357 |
|
|
|
25,729 |
|
|
|
23,772 |
|
General and administrative |
|
|
47,033 |
|
|
|
43,102 |
|
|
|
13,372 |
|
|
|
13,041 |
|
Depreciation |
|
|
667,896 |
|
|
|
616,032 |
|
|
|
214,129 |
|
|
|
215,397 |
|
Total expenses |
|
|
1,466,140 |
|
|
|
1,372,532 |
|
|
|
477,639 |
|
|
|
465,580 |
|
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|
||||
Net gain (loss) on sales of real estate properties |
|
|
304,346 |
|
|
|
587,623 |
|
|
|
196,551 |
|
|
|
363,928 |
|
|
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|
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Operating income |
|
|
873,683 |
|
|
|
1,033,958 |
|
|
|
414,011 |
|
|
|
521,554 |
|
|
|
|
|
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|
|
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|
||||
Interest and other income |
|
|
4,844 |
|
|
|
25,293 |
|
|
|
720 |
|
|
|
973 |
|
Other expenses |
|
|
(9,191 |
) |
|
|
(10,908 |
) |
|
|
(3,755 |
) |
|
|
(3,456 |
) |
Interest: |
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|
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Expense incurred, net |
|
|
(217,093 |
) |
|
|
(202,733 |
) |
|
|
(72,412 |
) |
|
|
(68,251 |
) |
Amortization of deferred financing costs |
|
|
(6,421 |
) |
|
|
(6,172 |
) |
|
|
(2,220 |
) |
|
|
(2,048 |
) |
Income before income and other taxes, income (loss) from |
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investments in unconsolidated entities and net gain (loss) |
||||||||||||||||
on sales of land parcels |
|
|
645,822 |
|
|
|
839,438 |
|
|
|
336,344 |
|
|
|
448,772 |
|
Income and other tax (expense) benefit |
|
|
(725 |
) |
|
|
(679 |
) |
|
|
(152 |
) |
|
|
(284 |
) |
Income (loss) from investments in unconsolidated entities |
|
|
(3,456 |
) |
|
|
(3,028 |
) |
|
|
(1,027 |
) |
|
|
(1,156 |
) |
Net gain (loss) on sales of land parcels |
|
|
— |
|
|
|
5 |
|
|
|
— |
|
|
|
— |
|
Net income |
|
|
641,641 |
|
|
|
835,736 |
|
|
|
335,165 |
|
|
|
447,332 |
|
Net (income) loss attributable to Noncontrolling Interests: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Partnership |
|
|
(21,024 |
) |
|
|
(27,903 |
) |
|
|
(10,997 |
) |
|
|
(14,847 |
) |
Partially Owned Properties |
|
|
(2,726 |
) |
|
|
(1,957 |
) |
|
|
(1,143 |
) |
|
|
(534 |
) |
Net income attributable to controlling interests |
|
|
617,891 |
|
|
|
805,876 |
|
|
|
323,025 |
|
|
|
431,951 |
|
Preferred distributions |
|
|
(2,318 |
) |
|
|
(2,318 |
) |
|
|
(773 |
) |
|
|
(773 |
) |
Net income available to Common Shares |
|
$ |
615,573 |
|
|
$ |
803,558 |
|
|
$ |
322,252 |
|
|
$ |
431,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share – basic: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income available to Common Shares |
|
$ |
1.64 |
|
|
$ |
2.15 |
|
|
$ |
0.86 |
|
|
$ |
1.15 |
|
Weighted average Common Shares outstanding |
|
|
375,710 |
|
|
|
373,474 |
|
|
|
375,850 |
|
|
|
374,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share – diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income available to Common Shares |
|
$ |
1.63 |
|
|
$ |
2.14 |
|
|
$ |
0.86 |
|
|
$ |
1.15 |
|
Weighted average Common Shares outstanding |
|
|
389,394 |
|
|
|
387,642 |
|
|
|
389,300 |
|
|
|
388,374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Distributions declared per Common Share outstanding |
|
$ |
1.875 |
|
|
$ |
1.8075 |
|
|
$ |
0.625 |
|
|
$ |
0.6025 |
|
Equity Residential Consolidated Statements of Funds From Operations and Normalized Funds From Operations (Amounts in thousands except per share data) (Unaudited) |
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|
|
|
||||||||||
|
|
Nine Months Ended September 30, |
|
Quarter Ended September 30, |
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Net income |
|
$ |
641,641 |
|
|
$ |
835,736 |
|
|
$ |
335,165 |
|
|
$ |
447,332 |
|
Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties |
|
(2,726 |
) |
|
|
(1,957 |
) |
|
|
(1,143 |
) |
|
|
(534 |
) |
|
Preferred distributions |
|
|
(2,318 |
) |
|
|
(2,318 |
) |
|
|
(773 |
) |
|
|
(773 |
) |
Net income available to Common Shares and Units |
|
|
636,597 |
|
|
|
831,461 |
|
|
|
333,249 |
|
|
|
446,025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation |
|
|
667,896 |
|
|
|
616,032 |
|
|
|
214,129 |
|
|
|
215,397 |
|
Depreciation – Non-real estate additions |
|
|
(3,189 |
) |
|
|
(3,228 |
) |
|
|
(1,075 |
) |
|
|
(1,052 |
) |
Depreciation – Partially Owned Properties |
|
|
(2,097 |
) |
|
|
(2,676 |
) |
|
|
(543 |
) |
|
|
(994 |
) |
Depreciation – Unconsolidated Properties |
|
|
1,897 |
|
|
|
1,867 |
|
|
|
657 |
|
|
|
634 |
|
Net (gain) loss on sales of unconsolidated entities - operating assets |
|
|
(9 |
) |
|
|
(4 |
) |
|
|
— |
|
|
|
— |
|
Net (gain) loss on sales of real estate properties |
|
|
(304,346 |
) |
|
|
(587,623 |
) |
|
|
(196,551 |
) |
|
|
(363,928 |
) |
FFO available to Common Shares and Units |
|
|
996,749 |
|
|
|
855,829 |
|
|
|
349,866 |
|
|
|
296,082 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments (see note for additional detail): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impairment – non-operating assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Write-off of pursuit costs |
|
|
3,296 |
|
|
|
3,557 |
|
|
|
781 |
|
|
|
910 |
|
Debt extinguishment and preferred share redemption (gains) losses |
|
|
4,316 |
|
|
|
264 |
|
|
|
3,847 |
|
|
|
— |
|
Non-operating asset (gains) losses |
|
|
(1,174 |
) |
|
|
(23,014 |
) |
|
|
156 |
|
|
|
294 |
|
Other miscellaneous items |
|
|
1,832 |
|
|
|
4,520 |
|
|
|
2,017 |
|
|
|
1,179 |
|
Normalized FFO available to Common Shares and Units |
|
$ |
1,005,019 |
|
|
$ |
841,156 |
|
|
$ |
356,667 |
|
|
$ |
298,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
FFO |
|
$ |
999,067 |
|
|
$ |
858,147 |
|
|
$ |
350,639 |
|
|
$ |
296,855 |
|
Preferred distributions |
|
|
(2,318 |
) |
|
|
(2,318 |
) |
|
|
(773 |
) |
|
|
(773 |
) |
FFO available to Common Shares and Units |
|
$ |
996,749 |
|
|
$ |
855,829 |
|
|
$ |
349,866 |
|
|
$ |
296,082 |
|
FFO per share and Unit – basic |
|
$ |
2.57 |
|
|
$ |
2.22 |
|
|
$ |
0.90 |
|
|
$ |
0.77 |
|
FFO per share and Unit – diluted |
|
$ |
2.56 |
|
|
$ |
2.21 |
|
|
$ |
0.90 |
|
|
$ |
0.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Normalized FFO |
|
$ |
1,007,337 |
|
|
$ |
843,474 |
|
|
$ |
357,440 |
|
|
$ |
299,238 |
|
Preferred distributions |
|
|
(2,318 |
) |
|
|
(2,318 |
) |
|
|
(773 |
) |
|
|
(773 |
) |
Normalized FFO available to Common Shares and Units |
|
$ |
1,005,019 |
|
|
$ |
841,156 |
|
|
$ |
356,667 |
|
|
$ |
298,465 |
|
Normalized FFO per share and Unit – basic |
|
$ |
2.59 |
|
|
$ |
2.18 |
|
|
$ |
0.92 |
|
|
$ |
0.77 |
|
Normalized FFO per share and Unit – diluted |
|
$ |
2.58 |
|
|
$ |
2.17 |
|
|
$ |
0.92 |
|
|
$ |
0.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average Common Shares and Units outstanding – basic |
|
|
387,603 |
|
|
|
385,841 |
|
|
|
387,745 |
|
|
|
386,327 |
|
Weighted average Common Shares and Units outstanding – diluted |
|
389,394 |
|
|
|
387,642 |
|
|
|
389,300 |
|
|
|
388,374 |
|
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) |
||||||||
|
|
|
|
|
|
|
||
|
|
September 30, |
|
December 31, |
||||
|
|
2022 |
|
2021 |
||||
ASSETS |
|
|
|
|
|
|
||
Land |
|
$ |
5,580,878 |
|
|
$ |
5,814,790 |
|
Depreciable property |
|
|
22,251,673 |
|
|
|
22,370,811 |
|
Projects under development |
|
|
89,347 |
|
|
|
24,307 |
|
Land held for development |
|
|
60,165 |
|
|
|
62,998 |
|
Investment in real estate |
|
|
27,982,063 |
|
|
|
28,272,906 |
|
Accumulated depreciation |
|
|
(8,813,578 |
) |
|
|
(8,354,282 |
) |
Investment in real estate, net |
|
|
19,168,485 |
|
|
|
19,918,624 |
|
Investments in unconsolidated entities1 |
|
|
256,311 |
�� |
|
|
127,448 |
|
Cash and cash equivalents |
|
|
44,788 |
|
|
|
123,832 |
|
Restricted deposits |
|
|
76,679 |
|
|
|
236,404 |
|
Right-of-use assets |
|
|
465,814 |
|
|
|
474,713 |
|
Other assets |
|
|
253,328 |
|
|
|
288,220 |
|
Total assets |
|
$ |
20,265,405 |
|
|
$ |
21,169,241 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Liabilities: |
|
|
|
|
|
|
||
Mortgage notes payable, net |
|
$ |
1,967,827 |
|
|
$ |
2,191,201 |
|
Notes, net |
|
|
5,340,807 |
|
|
|
5,835,222 |
|
Line of credit and commercial paper |
|
|
189,557 |
|
|
|
315,030 |
|
Accounts payable and accrued expenses |
|
|
175,843 |
|
|
|
107,013 |
|
Accrued interest payable |
|
|
49,652 |
|
|
|
69,510 |
|
Lease liabilities |
|
|
309,548 |
|
|
|
312,335 |
|
Other liabilities |
|
|
287,955 |
|
|
|
353,102 |
|
Security deposits |
|
|
69,247 |
|
|
|
66,141 |
|
Distributions payable |
|
|
242,695 |
|
|
|
233,502 |
|
Total liabilities |
|
|
8,633,131 |
|
|
|
9,483,056 |
|
|
|
|
|
|
|
|
||
Commitments and contingencies |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Redeemable Noncontrolling Interests – Operating Partnership |
|
|
370,537 |
|
|
|
498,977 |
|
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 September 30, 2022 and December 31, 2021 |
37,280 |
37,280 |
||||||
Common Shares of beneficial interest, $0.01 par value; |
|
|
|
|
|
|
|
|
1,000,000,000 shares authorized; 376,169,253 shares issued |
||||||||
and outstanding as of September 30, 2022 and 375,527,195 |
||||||||
shares issued and outstanding as of December 31, 2021 |
3,762 |
3,755 |
||||||
Paid in capital |
|
|
9,267,450 |
|
|
|
9,121,122 |
|
Retained earnings |
|
|
1,737,107 |
|
|
|
1,827,063 |
|
Accumulated other comprehensive income (loss) |
|
|
(872 |
) |
|
|
(34,272 |
) |
Total shareholders’ equity |
|
|
11,044,727 |
|
|
|
10,954,948 |
|
Noncontrolling Interests: |
|
|
|
|
|
|
||
Operating Partnership |
|
|
218,577 |
|
|
|
214,094 |
|
Partially Owned Properties |
|
|
(1,567 |
) |
|
|
18,166 |
|
Total Noncontrolling Interests |
|
|
217,010 |
|
|
|
232,260 |
|
Total equity |
|
|
11,261,737 |
|
|
|
11,187,208 |
|
Total liabilities and equity |
|
$ |
20,265,405 |
|
|
$ |
21,169,241 |
|
1 Includes $196.0 million and $72.5 million in unconsolidated development projects as of September 30, 2022 and December 31, 2021, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects.
Equity Residential Portfolio Summary As of September 30, 2022 |
|
|
|
|
|
|
|
|
% of
|
|
Average |
||||||
|
|
|
|
|
Apartment |
|
Budgeted |
|
Rental |
|||||||
Markets/Metro Areas |
|
Properties |
|
Units |
|
NOI |
|
Rate |
||||||||
Established Markets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Los Angeles |
|
|
66 |
|
|
|
15,259 |
|
|
|
18.8 |
% |
|
$ |
2,758 |
|
Orange County |
|
|
13 |
|
|
|
4,028 |
|
|
|
5.3 |
% |
|
|
2,663 |
|
San Diego |
|
|
12 |
|
|
|
2,878 |
|
|
|
4.1 |
% |
|
|
2,853 |
|
Subtotal – Southern California |
|
|
91 |
|
|
|
22,165 |
|
|
|
28.2 |
% |
|
|
2,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
San Francisco |
|
|
44 |
|
|
|
11,788 |
|
|
|
16.2 |
% |
|
|
3,204 |
|
Washington, D.C. |
|
|
47 |
|
|
|
14,715 |
|
|
|
15.6 |
% |
|
|
2,501 |
|
New York |
|
|
34 |
|
|
|
8,536 |
|
|
|
12.6 |
% |
|
|
4,230 |
|
Boston |
|
|
27 |
|
|
|
7,170 |
|
|
|
11.5 |
% |
|
|
3,295 |
|
Seattle |
|
|
46 |
|
|
|
9,525 |
|
|
|
11.1 |
% |
|
|
2,558 |
|
Subtotal – Established Markets |
|
|
289 |
|
|
|
73,899 |
|
|
|
95.2 |
% |
|
|
2,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expansion Markets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Denver |
|
|
8 |
|
|
|
2,498 |
|
|
|
2.6 |
% |
|
|
2,340 |
|
Atlanta |
|
|
4 |
|
|
|
1,215 |
|
|
|
1.0 |
% |
|
|
2,035 |
|
Dallas/Ft. Worth |
|
|
4 |
|
|
|
1,241 |
|
|
|
0.8 |
% |
|
|
1,820 |
|
Austin |
|
|
3 |
|
|
|
741 |
|
|
|
0.4 |
% |
|
|
1,765 |
|
Subtotal – Expansion Markets |
|
|
19 |
|
|
|
5,695 |
|
|
|
4.8 |
% |
|
|
2,088 |
|
Total |
|
|
308 |
|
|
|
79,594 |
|
|
|
100.0 |
% |
|
$ |
2,910 |
|
|
|
Properties |
|
Apartment Units |
||
Wholly Owned Properties |
|
293 |
|
76,480 |
||
Partially Owned Properties – Consolidated |
|
15 |
|
|
3,114 |
|
|
|
308 |
|
|
79,594 |
|
Note: Projects under development are not included in the Portfolio Summary until construction has been completed.
Equity Residential |
Portfolio Rollforward Q3 2022 ($ in thousands) |
|||||||||||||
|
Properties |
Apartment
|
Purchase
|
Acquisition
|
|||||||||
6/30/2022 |
310 |
|
80,227 |
|
|
|
|||||||
Acquisitions: |
|
|
|
|
|||||||||
Unconsolidated Land Parcels (1) |
— |
|
— |
|
$ |
56,886 |
|
|
|||||
|
|
|
|
|
|||||||||
|
|
|
Sales Price |
Disposition
|
|||||||||
Dispositions: |
|
|
|
|
|||||||||
Consolidated Rental Properties |
(2 |
) |
(591 |
) |
$ |
(480,500 |
) |
(3.5 |
%) |
||||
|
|
|
|
|
|||||||||
Configuration Changes |
— |
|
(42 |
) |
|
|
|||||||
9/30/2022 |
308 |
|
79,594 |
|
|
|
|||||||
|
|
|
|
Portfolio Rollforward 2022 ($ in thousands) |
|||||||||||||
|
Properties |
Apartment
|
Purchase
|
Acquisition
|
|||||||||
12/31/2021 |
310 |
|
80,407 |
|
|
|
|||||||
Acquisitions: |
|
|
|
|
|||||||||
Consolidated Rental Properties |
1 |
|
172 |
|
$ |
113,000 |
|
3.5 |
% |
||||
Unconsolidated Land Parcels (1) |
— |
|
— |
|
$ |
56,886 |
|
|
|||||
|
|
|
|
|
|||||||||
|
|
|
Sales Price |
Disposition
|
|||||||||
Dispositions: |
|
|
|
|
|||||||||
Consolidated Rental Properties |
(3 |
) |
(945 |
) |
$ |
(746,150 |
) |
(3.4 |
%) |
||||
|
|
|
|
|
|||||||||
Configuration Changes |
— |
|
(40 |
) |
|
|
|||||||
9/30/2022 |
308 |
|
79,594 |
|
|
|
(1) |
The Company entered into separate unconsolidated joint ventures for the purpose of developing vacant land parcels in suburban Dallas/Ft. Worth, TX and suburban Boston, MA. The purchase price listed represents the total consideration for the closing of the respective joint ventures. The Company's total investment in these two joint ventures is approximately $63.2 million as of September 30, 2022. See Development and Lease-Up Projects for additional detail. |
Equity Residential |
Third Quarter 2022 vs. Third Quarter 2021 Same Store Results/Statistics Including 73,402 Same Store Apartment Units ($ in thousands except for Average Rental Rate) |
|||||||||||||||||||||||||||||||||
Third Quarter 2022 |
Third Quarter 2021 |
||||||||||||||||||||||||||||||||
|
Residential |
|
%
|
Non-
|
%
|
Total |
%
|
|
Residential |
Non-
|
Total |
||||||||||||||||||||||
Revenues |
$ |
627,320 |
|
(1) |
12.1% |
$ |
23,392 |
5.7% |
$ |
650,712 |
11.8% |
Revenues |
$ |
559,690 |
|
$ |
22,128 |
$ |
581,818 |
||||||||||||||
Expenses |
$ |
198,980 |
|
|
3.4% |
$ |
6,052 |
|
5.8% |
$ |
205,032 |
|
3.5% |
Expenses |
$ |
192,418 |
|
$ |
5,721 |
|
$ |
198,139 |
|
||||||||||
NOI |
$ |
428,340 |
|
|
16.6% |
$ |
17,340 |
|
5.7% |
$ |
445,680 |
|
16.2% |
NOI |
$ |
367,272 |
|
$ |
16,407 |
|
$ |
383,679 |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Average Rental Rate |
$ |
2,955 |
|
|
12.3% |
|
|
|
|
Average Rental Rate |
$ |
2,632 |
|
|
|
||||||||||||||||||
Physical Occupancy |
|
96.5 |
% |
|
(0.1%) |
|
|
|
|
Physical Occupancy |
|
96.6 |
% |
|
|
||||||||||||||||||
Turnover |
|
13.8 |
% |
|
0.0% |
|
|
|
|
Turnover |
|
13.8 |
% |
|
|
||||||||||||||||||
Third Quarter 2022 vs. Second Quarter 2022 Same Store Results/Statistics Including 77,788 Same Store Apartment Units ($ in thousands except for Average Rental Rate) |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||
Third Quarter 2022 |
|
Second Quarter 2022 |
|||||||||||||||||||||||||||||||
|
|
Residential |
|
|
%
|
|
Non-
|
|
%
|
|
Total |
|
%
|
|
|
|
Residential |
|
Non-
|
|
Total |
||||||||||||
Revenues |
$ |
653,383 |
|
(1) |
2.1% |
$ |
24,124 |
1.2% |
$ |
677,507 |
2.1% |
Revenues |
$ |
640,027 |
|
$ |
23,827 |
$ |
663,854 |
||||||||||||||
Expenses |
$ |
210,547 |
|
|
4.6% |
$ |
6,261 |
|
4.6% |
$ |
216,808 |
|
4.6% |
Expenses |
$ |
201,334 |
|
$ |
5,983 |
|
$ |
207,317 |
|
||||||||||
NOI |
$ |
442,836 |
|
|
0.9% |
$ |
17,863 |
|
0.1% |
$ |
460,699 |
|
0.9% |
NOI |
$ |
438,693 |
|
$ |
17,844 |
|
$ |
456,537 |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Average Rental Rate |
$ |
2,906 |
|
|
2.4% |
|
|
|
|
Average Rental Rate |
$ |
2,838 |
|
|
|
||||||||||||||||||
Physical Occupancy |
|
96.4 |
% |
|
(0.3%) |
|
|
|
|
Physical Occupancy |
|
96.7 |
% |
|
|
||||||||||||||||||
Turnover |
|
14.0 |
% |
|
2.8% |
|
|
|
|
Turnover |
|
11.2 |
% |
|
|
||||||||||||||||||
September YTD 2022 vs. September YTD 2021 Same Store Results/Statistics Including 72,869 Same Store Apartment Units ($ in thousands except for Average Rental Rate) |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||
September YTD 2022 |
|
September YTD 2021 |
|||||||||||||||||||||||||||||||
|
|
Residential |
|
|
%
|
|
Non-
|
|
%
|
|
Total |
|
%
|
|
|
|
Residential |
|
Non-
|
|
Total |
||||||||||||
Revenues |
$ |
1,813,450 |
|
(1) |
|
11.2% |
|
$ |
68,731 |
|
8.1% |
|
$ |
1,882,181 |
|
11.1% |
Revenues |
$ |
1,630,928 |
|
|
$ |
63,575 |
|
$ |
1,694,503 |
|||||||
Expenses |
$ |
583,185 |
|
|
|
3.0% |
|
$ |
17,802 |
|
|
3.1% |
|
$ |
600,987 |
|
|
3.0% |
Expenses |
$ |
566,210 |
|
|
$ |
17,261 |
|
|
$ |
583,471 |
|
|||
NOI |
$ |
1,230,265 |
|
|
|
15.5% |
|
$ |
50,929 |
|
|
10.0% |
|
$ |
1,281,194 |
|
|
15.3% |
NOI |
$ |
1,064,718 |
|
|
$ |
46,314 |
|
|
$ |
1,111,032 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Average Rental Rate |
$ |
2,866 |
|
|
|
10.5% |
|
|
|
|
|
|
|
|
Average Rental Rate |
$ |
2,594 |
|
|
|
|
|
|||||||||||
Physical Occupancy |
|
96.5 |
% |
|
|
0.6% |
|
|
|
|
|
|
|
|
Physical Occupancy |
|
95.9 |
% |
|
|
|
|
|||||||||||
Turnover |
|
33.6 |
% |
|
|
(1.6%) |
|
|
|
|
|
|
|
|
Turnover |
|
35.2 |
% |
|
|
|
|
(1) |
See page 11 for Same Store Residential Revenues with Leasing Concessions reflected on a cash basis. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail. |
Equity Residential |
Same Store Residential Revenues – GAAP to Cash Basis (1) ($ in thousands) |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Third Quarter 2022 vs. Third Quarter 2021 |
|
Third Quarter 2022 vs. Second Quarter 2022 |
|
Sept. YTD 2022 vs. Sept. YTD 2021 |
||||||||||||||||||
|
73,402 Same Store Apartment Units |
|
77,788 Same Store Apartment Units |
|
72,869 Same Store Apartment Units |
||||||||||||||||||
|
Q3 2022 |
|
Q3 2021 |
|
Q3 2022 |
|
Q2 2022 |
|
Sept. YTD 2022 |
|
Sept. YTD 2021 |
||||||||||||
Same Store Residential Revenues (GAAP Basis) |
$ |
627,320 |
|
|
$ |
559,690 |
|
|
$ |
653,383 |
|
|
$ |
640,027 |
|
|
$ |
1,813,450 |
|
|
$ |
1,630,928 |
|
Leasing Concessions amortized |
|
914 |
|
|
|
10,553 |
|
|
|
1,431 |
|
|
|
2,156 |
|
|
|
6,132 |
|
|
|
34,517 |
|
Leasing Concessions granted |
|
(417 |
) |
|
|
(2,169 |
) |
|
|
(466 |
) |
|
|
(1,502 |
) |
|
|
(3,018 |
) |
|
|
(26,482 |
) |
Same Store Residential Revenues with Leasing |
|||||||||||||||||||||||
Concessions on a cash basis |
$ |
627,817 |
|
|
$ |
568,074 |
|
|
$ |
654,348 |
|
|
$ |
640,681 |
|
|
$ |
1,816,564 |
|
|
$ |
1,638,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
% change - GAAP revenue |
|
12.1 |
% |
|
|
|
|
|
2.1 |
% |
|
|
|
|
|
11.2 |
% |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
% change - cash revenue |
|
10.5 |
% |
|
|
|
|
|
2.1 |
% |
|
|
|
|
|
10.8 |
% |
|
|
|
(1) |
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail. |
|
Same Store Net Operating Income By Quarter Including 72,869 Same Store Apartment Units ($ in thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q3 2022 |
|
Q2 2022 |
|
Q1 2022 |
|
Q4 2021 |
|
Q3 2021 |
||||||||||
Same store revenues |
|
$ |
647,237 |
|
|
$ |
633,755 |
|
|
$ |
601,189 |
|
|
$ |
597,100 |
|
|
$ |
578,667 |
|
Same store expenses |
|
|
203,749 |
|
|
|
195,775 |
|
|
|
201,463 |
|
|
|
191,192 |
|
|
|
196,950 |
|
Same store NOI |
||||||||||||||||||||
(includes Residential and Non-Residential) |
|
$ |
443,488 |
|
|
$ |
437,980 |
|
|
$ |
399,726 |
|
|
$ |
405,908 |
|
|
$ |
381,717 |
|
Equity Residential |
Same Store Resident/Tenant Accounts Receivable Balances Including 72,869 Same Store Apartment Units ($ in thousands) |
|||||||||||||||||
|
|
|
|
|
|
|
|||||||||||
|
|
Residential |
|
Non-Residential |
|||||||||||||
Balance Sheet (Other assets): |
|
September 30, 2022 |
|
June 30, 2022 |
|
September 30, 2022 |
|
June 30, 2022 |
|||||||||
Resident/tenant accounts receivable balances |
$ |
33,159 |
|
|
$ |
34,568 |
|
|
$ |
3,915 |
|
|
$ |
3,410 |
|
||
Allowance for doubtful accounts |
|
(29,212 |
) |
|
|
(31,068 |
) |
|
|
(2,735 |
) |
|
|
(2,534 |
) |
||
Net receivable balances |
$ |
3,947 |
|
(1) |
$ |
3,500 |
|
|
$ |
1,180 |
|
|
$ |
876 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Straight-line receivable balances |
|
$ |
1,496 |
|
(2) |
$ |
1,993 |
|
|
$ |
12,433 |
|
|
$ |
12,482 |
|
(1) |
The Company held same store Residential security deposits approximating 56.6% of the net Residential receivable balance at September 30, 2022. |
|
(2) |
Total same store Residential Leasing Concessions granted in the third quarter of 2022 were approximately $0.4 million. The straight-line receivable balance of $1.5 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in the remainder of 2022 and the first three quarters of 2023. |
|
Same Store Residential Bad Debt Including 72,869 Same Store Apartment Units ($ in thousands) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|||
Income Statement (Rental income): |
|
Q3 2022 |
|
Q2 2022 |
|
Q3 2021 |
||||||
Bad Debt, Net (1) |
|
$ |
5,860 |
|
|
$ |
(1,407 |
) |
|
$ |
4,070 |
|
% of Same Store Residential Revenues |
|
|
0.9 |
% |
|
|
(0.2 |
%) |
|
|
0.7 |
% |
(1) |
Bad Debt, Net benefited from additional resident payments due to governmental rental assistance programs of approximately $7.7 million during the third quarter of 2022 as these programs wind down. These payments totaled $14.2 million and $12.5 million in the second quarter of 2022 and third quarter of 2021, respectively. |
Equity Residential Third Quarter 2022 vs. Third Quarter 2021 Same Store Residential Results/Statistics by Market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Year's Quarter |
||||||||||||||||||||||||||||
Markets/Metro Areas |
|
Apartment
|
|
Q3 2022
|
|
Q3 2022
|
|
Q3 2022
|
|
Q3 2022
|
|
Revenues |
|
Expenses |
|
NOI |
|
Average
|
|
Physical
|
|
Turnover |
|||||||||||||||||||||||
Los Angeles |
|
|
14,662 |
|
|
|
19.5 |
% |
|
$ |
2,766 |
|
|
|
96.9 |
% |
|
|
10.7 |
% |
|
|
8.5 |
% |
(1) |
|
3.6 |
% |
|
|
10.6 |
% |
|
|
9.2 |
% |
|
|
(0.6 |
%) |
|
|
(1.1 |
%) |
|
Orange County |
|
|
4,028 |
|
|
|
5.7 |
% |
|
|
2,663 |
|
|
|
97.1 |
% |
|
|
10.7 |
% |
|
|
10.5 |
% |
(1) |
|
6.5 |
% |
|
|
11.7 |
% |
|
|
11.8 |
% |
|
|
(1.0 |
%) |
|
|
(0.3 |
%) |
|
San Diego |
|
|
2,706 |
|
|
|
4.0 |
% |
|
|
2,822 |
|
|
|
96.7 |
% |
|
|
10.8 |
% |
|
|
9.1 |
% |
(1) |
|
6.4 |
% |
|
|
9.9 |
% |
|
|
10.5 |
% |
|
|
(1.1 |
%) |
|
|
(3.2 |
%) |
|
Subtotal – Southern California |
|
21,396 |
|
|
|
29.2 |
% |
|
|
2,754 |
|
|
|
96.9 |
% |
|
|
10.7 |
% |
|
|
8.9 |
% |
|
|
4.3 |
% |
|
|
10.7 |
% |
|
|
9.8 |
% |
|
|
(0.8 |
%) |
|
|
(1.2 |
%) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
San Francisco |
|
|
11,366 |
|
|
|
17.1 |
% |
|
|
3,212 |
|
|
|
95.9 |
% |
|
|
13.3 |
% |
|
|
10.8 |
% |
|
|
6.1 |
% |
|
|
12.9 |
% |
|
|
10.2 |
% |
|
|
0.6 |
% |
|
|
(1.0 |
%) |
|
Washington, D.C. |
|
|
14,399 |
|
|
|
16.1 |
% |
|
|
2,492 |
|
|
|
96.9 |
% |
|
|
14.2 |
% |
|
|
7.2 |
% |
|
|
4.2 |
% |
|
|
8.8 |
% |
|
|
7.0 |
% |
|
|
0.3 |
% |
|
|
(0.5 |
%) |
|
New York |
|
|
8,536 |
|
|
|
14.2 |
% |
|
|
4,230 |
|
|
|
96.9 |
% |
|
|
14.8 |
% |
|
|
22.9 |
% |
|
|
1.5 |
% |
|
|
45.2 |
% |
|
|
22.8 |
% |
|
|
0.1 |
% |
|
|
2.5 |
% |
|
Seattle |
|
|
9,331 |
|
|
|
11.4 |
% |
|
|
2,554 |
|
|
|
95.5 |
% |
|
|
15.8 |
% |
|
|
13.0 |
% |
|
|
(1.8 |
%) |
|
|
20.2 |
% |
|
|
13.7 |
% |
|
|
(0.6 |
%) |
|
|
1.4 |
% |
|
Boston |
|
|
6,430 |
|
|
|
9.9 |
% |
|
|
3,288 |
|
|
|
96.0 |
% |
|
|
17.8 |
% |
|
|
14.4 |
% |
|
|
4.4 |
% |
|
|
19.2 |
% |
|
|
14.1 |
% |
|
|
0.2 |
% |
|
|
0.8 |
% |
|
Denver |
|
|
1,624 |
|
|
|
1.8 |
% |
|
|
2,341 |
|
|
|
96.6 |
% |
|
|
19.7 |
% |
|
|
11.6 |
% |
|
|
8.0 |
% |
|
|
13.1 |
% |
|
|
11.9 |
% |
|
|
(0.3 |
%) |
|
|
1.3 |
% |
|
Other Expansion Markets |
|
|
320 |
|
|
|
0.3 |
% |
|
|
2,190 |
|
|
|
96.1 |
% |
|
|
14.1 |
% |
|
|
11.3 |
% |
|
|
13.8 |
% |
|
|
9.8 |
% |
|
|
12.6 |
% |
|
|
(0.8 |
%) |
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total |
|
|
73,402 |
|
|
|
100.0 |
% |
|
$ |
2,955 |
|
|
|
96.5 |
% |
|
|
13.8 |
% |
|
|
12.1 |
% |
(2) |
|
3.4 |
% |
|
|
16.6 |
% |
|
|
12.3 |
% |
|
|
(0.1 |
%) |
|
|
0.0 |
% |
(1) |
Excluding the negative impact of Bad Debt, Net which was primarily driven by a reduction in governmental rental assistance, same store revenue growth would have been 8.9%, 11.3% and 10.9% for Los Angeles, Orange County and San Diego, respectively. |
|
|
||
(2) |
With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 10.5% in the third quarter of 2022 compared to the third quarter of 2021. See page 11 for additional detail and reconciliations. |
|
|
||
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.3% of total revenues for the nine months ended September 30, 2022. |
Equity Residential Third Quarter 2022 vs. Second Quarter 2022 Same Store Residential Results/Statistics by Market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Quarter |
||||||||||||||||||||||||||||
Markets/Metro Areas |
|
Apartment
|
|
Q3 2022
|
|
Q3 2022
|
|
Q3 2022
|
|
Q3 2022
|
|
Revenues |
|
Expenses |
|
NOI |
|
Average
|
|
Physical
|
|
Turnover |
|||||||||||||||||||||||
Los Angeles |
|
|
14,662 |
|
|
|
18.8 |
% |
|
$ |
2,766 |
|
|
|
96.9 |
% |
|
|
10.7 |
% |
|
|
(1.9 |
%) |
(1) |
|
3.5 |
% |
|
|
(3.9 |
%) |
|
|
(1.9 |
%) |
|
|
0.0 |
% |
|
|
1.5 |
% |
|
Orange County |
|
|
4,028 |
|
|
|
5.5 |
% |
|
|
2,663 |
|
|
|
97.1 |
% |
|
|
10.7 |
% |
|
|
0.0 |
% |
(1) |
|
7.8 |
% |
|
|
(2.0 |
%) |
|
|
0.2 |
% |
|
|
(0.1 |
%) |
|
|
1.9 |
% |
|
San Diego |
|
|
2,878 |
|
|
|
4.1 |
% |
|
|
2,853 |
|
|
|
96.7 |
% |
|
|
11.2 |
% |
|
|
3.4 |
% |
(1) |
|
7.8 |
% |
|
|
2.2 |
% |
|
|
4.0 |
% |
|
|
(0.6 |
%) |
|
|
1.5 |
% |
|
Subtotal – Southern California |
|
21,568 |
|
|
|
28.4 |
% |
|
|
2,758 |
|
|
|
96.9 |
% |
|
|
10.8 |
% |
|
|
(0.8 |
%) |
|
|
4.6 |
% |
|
|
(2.7 |
%) |
|
|
(0.8 |
%) |
|
|
(0.1 |
%) |
|
|
1.6 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
San Francisco |
|
|
11,366 |
|
|
|
16.6 |
% |
|
|
3,212 |
|
|
|
95.9 |
% |
|
|
13.3 |
% |
|
|
1.0 |
% |
(1) |
|
6.7 |
% |
|
|
(1.3 |
%) |
|
|
1.9 |
% |
|
|
(0.8 |
%) |
|
|
3.9 |
% |
|
Washington, D.C. |
|
|
14,399 |
|
|
|
15.6 |
% |
|
|
2,492 |
|
|
|
96.9 |
% |
|
|
14.2 |
% |
|
|
2.8 |
% |
|
|
4.0 |
% |
|
|
2.2 |
% |
|
|
2.8 |
% |
|
|
0.1 |
% |
|
|
2.8 |
% |
|
New York |
|
|
8,536 |
|
|
|
13.7 |
% |
|
|
4,230 |
|
|
|
96.9 |
% |
|
|
14.8 |
% |
|
|
6.6 |
% |
|
|
1.5 |
% |
|
|
10.8 |
% |
|
|
6.8 |
% |
|
|
(0.2 |
%) |
|
|
2.9 |
% |
|
Seattle |
|
|
9,524 |
|
|
|
11.3 |
% |
|
|
2,558 |
|
|
|
95.5 |
% |
|
|
15.9 |
% |
|
|
3.4 |
% |
|
|
3.8 |
% |
|
|
3.2 |
% |
|
|
3.2 |
% |
|
|
0.2 |
% |
|
|
1.3 |
% |
|
Boston |
|
|
6,700 |
|
|
|
9.9 |
% |
|
|
3,263 |
|
|
|
95.9 |
% |
|
|
17.7 |
% |
|
|
3.2 |
% |
|
|
4.0 |
% |
|
|
2.9 |
% |
|
|
4.2 |
% |
|
|
(0.9 |
%) |
|
|
5.7 |
% |
|
Denver |
|
|
2,498 |
|
|
|
2.7 |
% |
|
|
2,340 |
|
|
|
96.4 |
% |
|
|
20.1 |
% |
|
|
2.4 |
% |
|
|
10.6 |
% |
|
|
(0.7 |
%) |
|
|
2.7 |
% |
|
|
(0.3 |
%) |
|
|
2.4 |
% |
|
Other Expansion Markets |
|
|
3,197 |
|
|
|
1.8 |
% |
|
|
1,855 |
|
|
|
95.6 |
% |
|
|
16.9 |
% |
|
|
(1.5 |
%) |
|
|
16.0 |
% |
|
|
(15.8 |
%) |
|
|
(0.3 |
%) |
|
|
(1.2 |
%) |
|
|
4.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total |
|
|
77,788 |
|
|
|
100.0 |
% |
|
$ |
2,906 |
|
|
|
96.4 |
% |
|
|
14.0 |
% |
|
|
2.1 |
% |
(2) |
|
4.6 |
% |
|
|
0.9 |
% |
|
|
2.4 |
% |
|
|
(0.3 |
%) |
|
|
2.8 |
% |
(1) |
Excluding the negative impact of Bad Debt, Net which was primarily driven by a reduction in governmental rental assistance, same store revenue growth would have been 2.5%, 2.7% and 1.8% for Los Angeles, Orange County and San Francisco, respectively. In San Diego, same store revenue growth would have been 2.8% excluding the benefit of Bad Debt, Net, which was primarily due to timing of governmental rental assistance. |
|
|
||
(2) |
With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 2.1% in the third quarter of 2022 compared to the second quarter of 2022. See page 11 for additional detail and reconciliations. |
|
|
||
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.3% of total revenues for the nine months ended September 30, 2022. |
Equity Residential September YTD 2022 vs. September YTD 2021 Same Store Residential Results/Statistics by Market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Year |
||||||||||||||||||||||||||||
Markets/Metro Areas |
|
Apartment
|
|
Sept. YTD 22
|
|
Sept. YTD 22
|
|
Sept. YTD 22
|
|
Sept. YTD 22
|
|
Revenues |
|
Expenses |
|
NOI |
|
Average
|
|
Physical
|
|
Turnover |
|||||||||||||||||||||||
Los Angeles |
|
|
14,662 |
|
|
|
20.0 |
% |
|
$ |
2,725 |
|
|
|
96.9 |
% |
|
|
28.3 |
% |
|
|
11.5 |
% |
(1) |
|
3.1 |
% |
|
|
15.4 |
% |
|
|
11.4 |
% |
|
|
0.2 |
% |
|
|
(3.8 |
%) |
|
Orange County |
|
|
4,028 |
|
|
|
5.8 |
% |
|
|
2,591 |
|
|
|
97.1 |
% |
|
|
25.8 |
% |
|
|
13.0 |
% |
(1) |
|
4.3 |
% |
|
|
15.6 |
% |
|
|
13.6 |
% |
|
|
(0.6 |
%) |
|
|
(1.4 |
%) |
|
San Diego |
|
|
2,706 |
|
|
|
4.1 |
% |
|
|
2,737 |
|
|
|
97.0 |
% |
|
|
29.3 |
% |
|
|
10.9 |
% |
(1) |
|
4.9 |
% |
|
|
12.7 |
% |
|
|
11.9 |
% |
|
|
(0.7 |
%) |
|
|
(5.2 |
%) |
|
Subtotal – Southern California |
|
21,396 |
|
|
|
29.9 |
% |
|
|
2,701 |
|
|
|
97.0 |
% |
|
|
28.0 |
% |
|
|
11.7 |
% |
|
|
3.5 |
% |
|
|
15.1 |
% |
|
|
11.8 |
% |
|
|
0.0 |
% |
|
|
(3.5 |
%) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
San Francisco |
|
|
11,366 |
|
|
|
17.6 |
% |
|
|
3,127 |
|
|
|
96.3 |
% |
|
|
32.1 |
% |
|
|
9.8 |
% |
(1) |
|
4.4 |
% |
|
|
12.3 |
% |
|
|
8.0 |
% |
|
|
1.6 |
% |
|
|
(5.2 |
%) |
|
Washington, D.C. |
|
|
14,186 |
|
|
|
16.2 |
% |
|
|
2,432 |
|
|
|
96.9 |
% |
|
|
33.8 |
% |
|
|
5.3 |
% |
|
|
5.3 |
% |
|
|
5.2 |
% |
|
|
4.7 |
% |
|
|
0.6 |
% |
|
|
(2.5 |
%) |
|
New York |
|
|
8,536 |
|
|
|
13.1 |
% |
|
|
3,964 |
|
|
|
97.0 |
% |
|
|
34.9 |
% |
|
|
19.1 |
% |
|
|
1.6 |
% |
|
|
39.0 |
% |
|
|
15.8 |
% |
|
|
2.7 |
% |
|
|
3.9 |
% |
|
Seattle |
|
|
9,331 |
|
|
|
11.4 |
% |
|
|
2,472 |
|
|
|
95.1 |
% |
|
|
41.9 |
% |
|
|
10.0 |
% |
|
|
(3.2 |
%) |
|
|
16.3 |
% |
|
|
10.7 |
% |
|
|
(0.7 |
%) |
|
|
2.5 |
% |
|
Boston |
|
|
6,430 |
|
|
|
9.9 |
% |
|
|
3,165 |
|
|
|
96.2 |
% |
|
|
37.3 |
% |
|
|
11.5 |
% |
|
|
4.9 |
% |
|
|
14.8 |
% |
|
|
10.9 |
% |
|
|
0.5 |
% |
|
|
(0.4 |
%) |
|
Denver |
|
|
1,624 |
|
|
|
1.9 |
% |
|
|
2,275 |
|
|
|
96.9 |
% |
|
|
48.4 |
% |
|
|
12.4 |
% |
|
|
7.3 |
% |
|
|
14.5 |
% |
|
|
12.0 |
% |
|
|
0.2 |
% |
|
|
2.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total |
|
|
72,869 |
|
|
|
100.0 |
% |
|
$ |
2,866 |
|
|
|
96.5 |
% |
|
|
33.6 |
% |
|
|
11.2 |
% |
(2) |
|
3.0 |
% |
|
|
15.5 |
% |
|
|
10.5 |
% |
|
|
0.6 |
% |
|
|
(1.6 |
%) |
(1) |
Excluding the positive impact of Bad Debt, Net which was primarily driven by receipt of governmental rental assistance, same store revenue growth would have been 8.3%, 11.8% and 8.6% for Los Angeles, Orange County and San Francisco, respectively. In San Diego, same store revenue growth would have been 11.6% excluding the negative impact of Bad Debt, Net, which was primarily due to timing of governmental rental assistance. |
|
|
||
(2) |
With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 10.8% in the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021. See page 11 for additional detail and reconciliations. |
|
|
||
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.3% of total revenues for the nine months ended September 30, 2022. |
Equity Residential |
Same Store Residential Net Effective Lease Pricing Statistics For 72,869 Same Store Apartment Units |
||||||||||||||||||
|
|
New Lease Change (1) |
|
Renewal Rate Achieved (1) |
|
Blended Rate (1) |
||||||||||||
Markets/Metro Areas |
|
Q3 2022 |
|
Q2 2022 |
|
Q3 2022 |
|
Q2 2022 |
|
Q3 2022 |
|
Q2 2022 |
||||||
Southern California |
|
14.0 |
% |
|
15.8 |
% |
|
7.6 |
% |
|
7.3 |
% |
|
10.3 |
% |
|
10.7 |
% |
San Francisco |
|
9.1 |
% |
|
14.9 |
% |
|
8.4 |
% |
|
9.1 |
% |
|
8.8 |
% |
|
11.7 |
% |
Washington, D.C. |
|
9.4 |
% |
|
11.1 |
% |
|
7.5 |
% |
|
8.3 |
% |
|
8.3 |
% |
|
9.6 |
% |
New York |
|
22.2 |
% |
|
38.1 |
% |
|
14.8 |
% |
|
19.2 |
% |
|
18.0 |
% |
|
27.4 |
% |
Seattle |
|
10.3 |
% |
|
17.5 |
% |
|
11.1 |
% |
|
13.1 |
% |
|
10.7 |
% |
|
15.3 |
% |
Boston |
|
11.1 |
% |
|
17.8 |
% |
|
11.4 |
% |
|
12.4 |
% |
|
11.3 |
% |
|
14.9 |
% |
Denver |
|
8.7 |
% |
|
12.7 |
% |
|
8.8 |
% |
|
12.3 |
% |
|
8.7 |
% |
|
12.5 |
% |
Total |
|
13.0 |
% |
|
19.1 |
% |
|
10.0 |
% |
|
11.2 |
% |
|
11.3 |
% |
|
14.8 |
% |
(1) |
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions. See page 3 for October 2022 preliminary data. |
Equity Residential |
Third Quarter 2022 vs. Third Quarter 2021 Total Same Store Operating Expenses Including 73,402 Same Store Apartment Units ($ in thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q3 2022 |
|
Q3 2021 |
|
$
|
|
%
|
|
% of
|
||||||||||
Real estate taxes |
|
$ |
84,246 |
|
|
$ |
83,745 |
|
|
$ |
501 |
|
|
|
0.6 |
% |
|
|
41.1 |
% |
On-site payroll |
|
|
39,026 |
|
|
|
40,571 |
|
|
|
(1,545 |
) |
|
|
(3.8 |
%) |
|
|
19.0 |
% |
Utilities |
|
|
33,884 |
|
|
|
29,764 |
|
|
|
4,120 |
|
|
|
13.8 |
% |
|
|
16.5 |
% |
Repairs and maintenance |
|
|
27,391 |
|
|
|
24,850 |
|
|
|
2,541 |
|
|
|
10.2 |
% |
|
|
13.4 |
% |
Insurance |
|
|
7,325 |
|
|
|
6,563 |
|
|
|
762 |
|
|
|
11.6 |
% |
|
|
3.6 |
% |
Leasing and advertising |
|
|
2,668 |
|
|
|
2,515 |
|
|
|
153 |
|
|
|
6.1 |
% |
|
|
1.3 |
% |
Other on-site operating expenses |
|
|
10,492 |
|
|
|
10,131 |
|
|
|
361 |
|
|
|
3.6 |
% |
|
|
5.1 |
% |
Total Same Store Operating Expenses (2) |
||||||||||||||||||||
(includes Residential and Non-Residential) |
|
$ |
205,032 |
|
|
$ |
198,139 |
|
|
$ |
6,893 |
|
|
|
3.5 |
% |
|
|
100.0 |
% |
September YTD 2022 vs. September YTD 2021 Total Same Store Operating Expenses Including 72,869 Same Store Apartment Units ($ in thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
YTD 2022 |
|
YTD 2021 |
|
$
|
|
%
|
|
% of
|
||||||||||
Real estate taxes |
|
$ |
251,016 |
|
|
$ |
249,863 |
|
|
$ |
1,153 |
|
|
|
0.5 |
% |
|
|
41.8 |
% |
On-site payroll |
|
|
114,172 |
|
|
|
118,679 |
|
|
|
(4,507 |
) |
|
|
(3.8 |
%) |
|
|
19.0 |
% |
Utilities |
|
|
96,872 |
|
|
|
85,906 |
|
|
|
10,966 |
|
|
|
12.8 |
% |
|
|
16.1 |
% |
Repairs and maintenance |
|
|
77,581 |
|
|
|
70,771 |
|
|
|
6,810 |
|
|
|
9.6 |
% |
|
|
12.9 |
% |
Insurance |
|
|
21,488 |
|
|
|
19,606 |
|
|
|
1,882 |
|
|
|
9.6 |
% |
|
|
3.6 |
% |
Leasing and advertising |
|
|
7,121 |
|
|
|
7,727 |
|
|
|
(606 |
) |
|
|
(7.8 |
%) |
|
|
1.2 |
% |
Other on-site operating expenses |
|
|
32,737 |
|
|
|
30,919 |
|
|
|
1,818 |
|
|
|
5.9 |
% |
|
|
5.4 |
% |
Total Same Store Operating Expenses (2) |
||||||||||||||||||||
(includes Residential and Non-Residential) |
|
$ |
600,987 |
|
|
$ |
583,471 |
|
|
$ |
17,516 |
|
|
|
3.0 |
% |
|
|
100.0 |
% |
(1) |
The quarter-over-quarter and year-over-year changes were primarily driven by the following factors: |
|
|
||
Real estate taxes – Increase due to modest escalation in rates and assessed values. |
||
|
||
On-site payroll – Improved sales and service staff utilization from various technology initiatives and higher than usual staffing vacancies during the periods presented. |
||
|
||
Utilities – Increase from gas and electric primarily driven by higher commodity prices. |
||
|
||
Repairs and maintenance – Increase primarily driven by volume and timing of maintenance and repairs along with increases in minimum wage on contracted services. |
||
|
||
Insurance – Increase due to higher premiums on property insurance renewal due to challenging conditions in the insurance market. |
||
|
||
Leasing and advertising – Year-over-year decrease due primarily to reduction in use of outside residential brokers. Quarter-over-quarter increase due primarily to increase in use of outside retail brokers. |
||
|
||
Other on-site operating expenses – Increase driven by higher property-related legal expenses. |
||
|
||
(2) |
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. |
Equity Residential |
Debt Summary as of September 30, 2022 ($ in thousands) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Debt
|
|
% of Total |
|
Weighted
|
|
Weighted
|
||||||||
Secured |
|
$ |
1,967,827 |
|
|
|
26.2 |
% |
|
|
3.39 |
% |
|
|
4.9 |
|
Unsecured |
|
|
5,530,364 |
|
|
|
73.8 |
% |
|
|
3.58 |
% |
|
|
9.7 |
|
Total |
|
$ |
7,498,191 |
|
|
|
100.0 |
% |
|
|
3.53 |
% |
|
|
8.5 |
|
Fixed Rate Debt: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Secured – Conventional |
|
$ |
1,634,342 |
|
|
|
21.8 |
% |
|
|
3.68 |
% |
|
|
4.1 |
|
Unsecured – Public |
|
|
5,340,807 |
|
|
|
71.2 |
% |
|
|
3.65 |
% |
|
|
10.1 |
|
Fixed Rate Debt |
|
|
6,975,149 |
|
|
|
93.0 |
% |
|
|
3.66 |
% |
|
|
8.7 |
|
Floating Rate Debt: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Secured – Conventional |
|
|
97,611 |
|
|
|
1.3 |
% |
|
|
3.33 |
% |
|
|
1.4 |
|
Secured – Tax Exempt |
|
|
235,874 |
|
|
|
3.1 |
% |
|
|
1.29 |
% |
|
|
11.7 |
|
Unsecured – Revolving Credit Facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.1 |
|
Unsecured – Commercial Paper Program (2) |
|
|
189,557 |
|
|
|
2.6 |
% |
|
|
1.18 |
% |
|
|
— |
|
Floating Rate Debt |
|
|
523,042 |
|
|
|
7.0 |
% |
|
|
1.56 |
% |
|
|
5.7 |
|
Total |
|
$ |
7,498,191 |
|
|
|
100.0 |
% |
|
|
3.53 |
% |
|
|
8.5 |
|
(1) |
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. |
|
(2) |
At September 30, 2022, the Weighted Average Coupon and weighted average maturity of commercial paper outstanding was 3.20% and 28 days, respectively. The weighted average amount outstanding for the nine months ended September 30, 2022 was approximately $177.9 million. |
|
Note: The Company capitalized interest of approximately $4.2 million and $12.4 million during the nine months ended September 30, 2022 and 2021, respectively. The Company capitalized interest of approximately $1.9 million and $4.2 million during the quarters ended September 30, 2022 and 2021, respectively. |
Equity Residential |
Debt Maturity Schedule as of September 30, 2022
($ in thousands)
Year |
|
Fixed
|
|
Floating
|
|
Total |
|
% of Total |
|
Weighted
|
|
Weighted
|
|||||||||||||
2022 |
|
$ |
165 |
|
|
$ |
190,040 |
|
(2) |
$ |
190,205 |
|
|
|
2.5 |
% |
|
|
3.48 |
% |
|
|
3.20 |
% |
|
2023 (3) |
|
|
825,588 |
|
|
|
68,276 |
|
|
|
893,864 |
|
|
|
11.8 |
% |
|
|
4.19 |
% |
|
|
4.21 |
% |
|
2024 |
|
|
— |
|
|
|
6,100 |
|
|
|
6,100 |
|
|
|
0.1 |
% |
|
N/A |
|
|
|
2.37 |
% |
||
2025 |
|
|
450,000 |
|
|
|
42,556 |
|
|
|
492,556 |
|
|
|
6.6 |
% |
|
|
3.38 |
% |
|
|
3.50 |
% |
|
2026 |
|
|
592,025 |
|
|
|
9,000 |
|
|
|
601,025 |
|
|
|
7.9 |
% |
|
|
3.58 |
% |
|
|
3.56 |
% |
|
2027 |
|
|
400,000 |
|
|
|
9,800 |
|
|
|
409,800 |
|
|
|
5.4 |
% |
|
|
3.25 |
% |
|
|
3.23 |
% |
|
2028 |
|
|
900,000 |
|
|
|
10,700 |
|
|
|
910,700 |
|
|
|
12.0 |
% |
|
|
3.79 |
% |
|
|
3.77 |
% |
|
2029 |
|
|
888,120 |
|
|
|
11,500 |
|
|
|
899,620 |
|
|
|
11.9 |
% |
|
|
3.30 |
% |
|
|
3.29 |
% |
|
2030 |
|
|
1,095,000 |
|
|
|
12,600 |
|
|
|
1,107,600 |
|
|
|
14.6 |
% |
|
|
2.55 |
% |
|
|
2.54 |
% |
|
2031 |
|
|
528,500 |
|
|
|
39,700 |
|
|
|
568,200 |
|
|
|
7.5 |
% |
|
|
1.94 |
% |
|
|
1.97 |
% |
|
2032+ |
|
|
1,350,850 |
|
|
|
138,900 |
|
|
|
1,489,750 |
|
|
|
19.7 |
% |
|
|
4.39 |
% |
|
|
4.21 |
% |
|
Subtotal |
|
|
7,030,248 |
|
|
|
539,172 |
|
|
|
7,569,420 |
|
|
|
100.0 |
% |
|
|
3.48 |
% |
|
|
3.46 |
% |
|
Deferred Financing Costs and Unamortized (Discount) |
|
|
(55,099 |
) |
|
|
(16,130 |
) |
|
|
(71,229 |
) |
|
N/A |
|
|
N/A |
|
|
N/A |
|
||||
Total |
|
$ |
6,975,149 |
|
|
$ |
523,042 |
|
|
$ |
7,498,191 |
|
|
|
100.0 |
% |
|
|
3.48 |
% |
|
|
3.46 |
% |
(1) | See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. |
|
(2) | Includes $190.0 million in principal outstanding on the Company’s commercial paper program. |
|
(3) | During the second and third quarters of 2022, the Company entered into $350.0 million of forward starting swaps on ten-year SOFR at a weighted average rate of 2.69% (currently equivalent to a ten-year U.S. Treasury of approximately 3.0%) to hedge the U.S. Treasury risk for the refinancing of 2023 maturities. |
Equity Residential |
Selected Unsecured Public Debt Covenants |
||||
|
|
September 30, |
|
June 30, |
|
|
2022 |
|
2022 |
Debt to Adjusted Total Assets (not to exceed 60%) |
|
27.5% |
|
29.0% |
|
|
|
|
|
Secured Debt to Adjusted Total Assets (not to exceed 40%) |
|
8.0% |
|
7.9% |
|
|
|
|
|
Consolidated Income Available for Debt Service to |
||||
Maximum Annual Service Charges |
||||
(must be at least 1.5 to 1) |
|
6.15 |
|
5.54 |
|
|
|
|
|
Total Unencumbered Assets to Unsecured Debt |
||||
(must be at least 125%) |
|
500.0% |
|
461.5% |
Note: These selected covenants represent the most restrictive financial covenants relating to ERP Operating Limited Partnership's ("ERPOP") outstanding public debt securities. Equity Residential is the general partner of ERPOP.
Selected Credit Ratios |
||||
|
|
September 30, |
|
June 30, |
|
|
2022 |
|
2022 |
Total debt to Normalized EBITDAre |
|
4.58x |
|
5.05x |
|
|
|
|
|
Net debt to Normalized EBITDAre |
|
4.54x |
|
5.01x |
|
|
|
|
|
Unencumbered NOI as a % of total NOI |
|
88.3% |
|
88.4% |
Note: See Normalized EBITDAre Reconciliations for detail.
Equity Residential |
Capital Structure as of September 30, 2022 (Amounts in thousands except for share/unit and per share amounts) |
||||||||||||||||||||
Secured Debt |
|
|
|
|
|
|
|
$ |
1,967,827 |
|
|
|
26.2 |
% |
|
|
|
|||
Unsecured Debt |
|
|
|
|
|
|
|
|
5,530,364 |
|
|
|
73.8 |
% |
|
|
|
|||
Total Debt |
|
|
|
|
|
|
|
|
7,498,191 |
|
|
|
100.0 |
% |
|
|
22.3 |
% |
||
Common Shares (includes Restricted Shares) |
|
|
376,169,253 |
|
|
|
96.7 |
% |
|
|
|
|
|
|
|
|
|
|||
Units (includes OP Units and Restricted Units) |
|
|
12,844,608 |
|
|
|
3.3 |
% |
|
|
|
|
|
|
|
|
|
|||
Total Shares and Units |
|
|
389,013,861 |
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|||
Common Share Price at September 30, 2022 |
|
$ |
67.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
26,149,512 |
|
|
|
99.9 |
% |
|
|
|
|||
Perpetual Preferred Equity (see below) |
|
|
|
|
|
|
|
|
37,280 |
|
|
|
0.1 |
% |
|
|
|
|||
Total Equity |
|
|
|
|
|
|
|
|
26,186,792 |
|
|
|
100.0 |
% |
|
|
77.7 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total Market Capitalization |
|
|
|
|
|
|
|
$ |
33,684,983 |
|
|
|
|
|
|
100.0 |
% |
Perpetual Preferred Equity as of September 30, 2022 (Amounts in thousands except for share and per share amounts) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Series |
|
Call Date |
|
Outstanding
|
|
Liquidation
|
|
Annual
|
|
Annual
|
||||||||
Preferred Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
8.29% Series K |
|
12/10/26 |
|
|
745,600 |
|
|
$ |
37,280 |
|
|
$ |
4.145 |
|
|
$ |
3,091 |
|
Equity Residential Common Share and Unit Weighted Average Amounts Outstanding
|
|
|
Sept. YTD 2022 |
|
Sept. YTD 2021 |
|
Q3 2022 |
|
Q3 2021 |
||||||||
Weighted Average Amounts Outstanding for Net Income Purposes: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common Shares - basic |
|
|
375,710,361 |
|
|
|
373,473,847 |
|
|
|
375,849,762 |
|
|
|
374,307,789 |
|
Shares issuable from assumed conversion/vesting of: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
- OP Units |
|
|
11,892,922 |
|
|
|
12,367,392 |
|
|
|
11,895,558 |
|
|
|
12,018,963 |
|
- long-term compensation shares/units |
|
|
1,784,035 |
|
|
|
1,801,057 |
|
|
|
1,554,258 |
|
|
|
2,046,947 |
|
- ATM forward sales |
|
|
6,276 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total Common Shares and Units - diluted |
|
|
389,393,594 |
|
|
|
387,642,296 |
|
|
|
389,299,578 |
|
|
|
388,373,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common Shares - basic |
|
|
375,710,361 |
|
|
|
373,473,847 |
|
|
|
375,849,762 |
|
|
|
374,307,789 |
|
OP Units - basic |
|
|
11,892,922 |
|
|
|
12,367,392 |
|
|
|
11,895,558 |
|
|
|
12,018,963 |
|
Total Common Shares and OP Units - basic |
|
|
387,603,283 |
|
|
|
385,841,239 |
|
|
|
387,745,320 |
|
|
|
386,326,752 |
|
Shares issuable from assumed conversion/vesting of: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
- long-term compensation shares/units |
|
|
1,784,035 |
|
|
|
1,801,057 |
|
|
|
1,554,258 |
|
|
|
2,046,947 |
|
- ATM forward sales |
|
|
6,276 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total Common Shares and Units - diluted |
|
|
389,393,594 |
|
|
|
387,642,296 |
|
|
|
389,299,578 |
|
|
|
388,373,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Period Ending Amounts Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common Shares (includes Restricted Shares) |
|
|
376,169,253 |
|
|
|
375,002,588 |
|
|
|
|
|
|
|
||
Units (includes OP Units and Restricted Units) |
|
|
12,844,608 |
|
|
|
12,859,748 |
|
|
|
|
|
|
|
||
Total Shares and Units |
|
389,013,861 |
|
387,862,336 |
|
|
|
|
|
Equity Residential Development and Lease-Up Projects as of September 30, 2022 (Amounts in thousands except for project and apartment unit amounts)
|
|
|
|
|
|
|
|