Robust Demand and Continued Strong Cost Controls Drive Guidance Improvements
Equity Residential (NYSE: EQR) today reported results for the quarter and six months ended June 30, 2022.
Second 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 June 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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$ |
0.59 |
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$ |
0.84 |
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$ |
(0.25 |
) |
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(29.8 |
%) |
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Funds from Operations (FFO) per share |
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$ |
0.89 |
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$ |
0.78 |
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$ |
0.11 |
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14.1 |
% |
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Normalized FFO per share |
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$ |
0.89 |
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$ |
0.72 |
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$ |
0.17 |
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23.6 |
% |
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Six Months Ended June 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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$ |
0.78 |
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$ |
1.00 |
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$ |
(0.22 |
) |
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(22.0 |
%) |
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Funds from Operations (FFO) per share |
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$ |
1.66 |
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$ |
1.45 |
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$ |
0.21 |
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14.5 |
% |
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Normalized FFO per share |
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$ |
1.66 |
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$ |
1.40 |
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$ |
0.26 |
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18.6 |
% |
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“We delivered outstanding results this quarter supported by favorable supply-and-demand dynamics and a healthy labor market bolstering employment and wages. As a result, we are pleased to significantly raise our full year same store revenue, NOI and Normalized FFO guidance,” said Mark J. Parrell, Equity Residential’s President and CEO. “Going forward, we expect elevated single family home ownership costs and positive household formation trends to buffer the impact on our business from economic weakness and see our affluent resident base as more resilient to rising inflation due to higher levels of disposable income and lower relative rent-to-income ratios.”
Recent Highlights
- The Company reported a 13.6% increase in same store revenue for the second quarter of 2022 compared to the same period of 2021, driven by strong Physical Occupancy and continued growth in pricing power. Same store expense growth continued to remain in check at 3.1% driven by favorable real estate tax and payroll expense.
- The Company has increased the midpoint of its full year 2022 same store revenue guidance to 10.5% from 9.0% and adjusted various guidance ranges as described in the table below.
- The Company sold a 354-unit apartment property in New York for approximately $265.7 million in April 2022 and in July 2022 sold a 455-unit apartment property in New York for $415.0 million.
Full Year 2022 Guidance
The Company has revised its guidance for its full year 2022 same store operating performance, EPS, FFO per share, Normalized FFO per share and transactions as listed below:
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Revised |
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Previous |
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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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96.5% |
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96.5% |
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0.0% |
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Revenue change |
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10.0% to 11.0% |
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8.0% to 10.0% |
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1.5% |
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Expense change |
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2.5% to 3.5% |
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2.5% to 3.5% |
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0.0% |
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NOI change |
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13.75% to 14.75% |
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11.0% to 13.0% |
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2.25% |
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EPS |
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$1.98 to $2.08 |
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$4.18 to $4.28 |
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$(2.20) |
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FFO per share |
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$3.45 to $3.55 |
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$3.36 to $3.46 |
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$0.09 |
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Normalized FFO per share |
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$3.48 to $3.58 |
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$3.40 to $3.50 |
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$0.08 |
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Transactions (1): |
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Consolidated rental acquisitions |
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$113.0 million |
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$2.0 billion |
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Consolidated rental dispositions |
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$746.0 million |
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$2.0 billion |
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(1) |
Given current uncertainty in the transaction environment, the Company’s revised acquisition and disposition guidance reflects no additional activities beyond one sale for $65.5 million currently under contract and scheduled to close in the fourth quarter of 2022. |
The change in the full year 2022 EPS guidance range is due primarily to lower expected property sale gains and the items described below.
The change in the full year 2022 FFO per share guidance range is due primarily to the items described below.
The change in the full year 2022 Normalized FFO per share guidance range is due primarily to:
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Positive/(Negative) Impact |
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Revised Full Year 2022 vs
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Residential same store Net Operating Income (NOI) |
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$ |
0.09 |
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2022 and 2021 transaction activity impact on NOI, net |
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(0.02 |
) |
Interest expense, net |
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0.01 |
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Net |
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$ |
0.08 |
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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, 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 27 of this release and the items described below.
The per share changes in FFO for the quarter and six months ended June 30, 2022 compared to the same periods of 2021 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 2022 vs.
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June YTD 2022 vs.
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Residential Same Store NOI |
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$ |
0.18 |
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$ |
0.27 |
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Non-Residential same store NOI |
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0.01 |
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0.01 |
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Lease-Up NOI |
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0.01 |
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0.02 |
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2022 and 2021 transaction activity impact on NOI, net |
– |
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0.01 |
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Interest expense, net |
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(0.01 |
) |
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(0.02 |
) |
Other items |
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(0.02 |
) |
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(0.03 |
) |
Net |
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$ |
0.17 |
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$ |
0.26 |
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Same Store Results
The following table shows the total same store results for the periods presented.
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Second Quarter 2022 vs.
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Second Quarter 2022 vs.
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June YTD 2022 vs.
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Apartment Units |
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74,057 |
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78,108 |
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74,057 |
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Physical Occupancy |
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96.7% vs. 96.1% |
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96.7% vs. 96.4% |
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96.5% vs. 95.5% |
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Revenues |
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13.6% |
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5.3% |
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10.7% |
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Expenses |
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3.1% |
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(2.9%) |
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2.8% |
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NOI |
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19.1% |
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9.6% |
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15.0% |
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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, 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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Second Quarter 2022 vs.
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Second Quarter 2022 vs.
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June 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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8.3 |
% |
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2.7 |
% |
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6.3 |
% |
Leasing Concessions |
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2.0 |
% |
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0.3 |
% |
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1.7 |
% |
Vacancy gain (loss) |
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0.2 |
% |
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0.1 |
% |
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0.7 |
% |
Bad Debt, Net (1) |
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2.5 |
% |
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1.9 |
% |
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1.6 |
% |
Other (2) |
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0.7 |
% |
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0.4 |
% |
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0.5 |
% |
Same Store Residential Revenues- |
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13.7 |
% |
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5.4 |
% |
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10.8 |
% |
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current period |
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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. |
(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:
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Q1 2022 |
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Q2 2022 |
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July 2022 (1) |
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Physical Occupancy (2) |
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96.3% |
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96.4% |
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96.5% |
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Percentage of Residents Renewing by quarter/month |
59.9% |
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56.3% |
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55.0% |
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New Lease Change |
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15.3% |
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19.2% |
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16.4% |
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Renewal Rate Achieved |
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12.0% |
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11.2% |
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10.0% |
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Blended Rate |
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13.3% |
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14.8% |
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12.9% |
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(1) |
July 2022 results are preliminary. Moderation in July operating metrics is being driven by a more challenging 2021 comparable period, not a loss in operating momentum, as our sequential rents continue to grow. |
(2) |
Physical Occupancy is as of month-end March for Q1 2022, month-end June for Q2 2022 and as of July 21st for July 2022. |
Investment Activity and Portfolio Strategy
The Company did not acquire any properties during the second quarter of 2022. During the first six 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%.
During the second quarter of 2022, the Company sold a 354-unit apartment property in New York, built in 2003, for approximately $265.7 million at a Disposition Yield of 3.3%, generating an Unlevered IRR of 6.6%. Subsequent to the end of the second quarter, 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%.
Also during the second quarter of 2022, the Company began construction on one wholly owned densification project located in Santa Clara, CA for the development of 225 apartment units and one unconsolidated project located in Ft. Worth, TX for the development of 362 apartment units as part of its joint venture with Toll Brothers.
Third Quarter 2022 Guidance
The Company has established guidance ranges for the third quarter of 2022 EPS, FFO per share and Normalized FFO per share as listed below:
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Q3 2022 Guidance |
EPS |
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$0.77 to $0.81 |
FFO per share |
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$0.87 to $0.91 |
Normalized FFO per share |
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$0.89 to $0.93 |
The difference between the second quarter of 2022 actual EPS of $0.59 and the third quarter of 2022 EPS guidance midpoint of $0.79 is due primarily to higher expected property sale gains and the items described below.
There is no net change between the second quarter of 2022 actual FFO of $0.89 per share and the third quarter of 2022 FFO guidance midpoint of $0.89 per share.
The difference between the second quarter of 2022 actual Normalized FFO of $0.89 per share and the third quarter of 2022 Normalized FFO guidance midpoint of $0.91 per share is due primarily to:
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Positive/(Negative)
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Third Quarter 2022 vs.
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Residential Same Store NOI |
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$ |
0.01 |
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2022 transaction activity impact on NOI, net |
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(0.01 |
) |
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Interest expense, net |
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0.01 |
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Other items |
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0.01 |
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Net |
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$ |
0.02 |
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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 310 properties consisting of 80,227 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, many of which are unknown, including the duration and severity of the pandemic, the extent of the adverse health impact on the general population and on our residents, customers and employees in particular, its impact on the employment rate and the economy and the corresponding impact on our residents’ and tenants’ ability to pay their rent on time or at all, the extent and impact of governmental responses, the rollout and effectiveness of vaccines and the impact of operational changes we have implemented and may implement in response to the pandemic. 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, July 27, 2022 at 10:00 a.m. CT. Please visit the Investor section of the Company’s website at www.equityapartments.com for the webcast link.
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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2022 |
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2021 |
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2022 |
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2021 |
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REVENUES |
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Rental income |
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$ |
1,340,378 |
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$ |
1,195,661 |
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$ |
687,030 |
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$ |
598,059 |
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EXPENSES |
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Property and maintenance |
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241,229 |
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224,800 |
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116,355 |
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107,746 |
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Real estate taxes and insurance |
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202,538 |
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200,871 |
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101,850 |
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97,401 |
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Property management |
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57,306 |
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50,585 |
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26,559 |
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24,455 |
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General and administrative |
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33,661 |
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30,061 |
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16,423 |
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14,678 |
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Depreciation |
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453,767 |
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400,635 |
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223,806 |
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200,673 |
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Total expenses |
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988,501 |
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906,952 |
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484,993 |
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444,953 |
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Net gain (loss) on sales of real estate properties |
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107,795 |
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223,695 |
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107,897 |
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223,738 |
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Operating income |
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459,672 |
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512,404 |
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309,934 |
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376,844 |
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Interest and other income |
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4,124 |
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|
24,320 |
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|
596 |
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|
24,104 |
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Other expenses |
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(5,436 |
) |
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(7,452 |
) |
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(2,380 |
) |
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(3,342 |
) |
Interest: |
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Expense incurred, net |
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(144,681 |
) |
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(134,482 |
) |
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(71,889 |
) |
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(67,124 |
) |
Amortization of deferred financing costs |
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(4,201 |
) |
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(4,124 |
) |
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(2,124 |
) |
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(1,939 |
) |
Income before income and other taxes, income (loss) from |
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309,478 |
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|
390,666 |
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234,137 |
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|
328,543 |
|
investments in unconsolidated entities and net gain (loss) |
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on sales of land parcels |
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Income and other tax (expense) benefit |
|
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(573 |
) |
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(395 |
) |
|
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(291 |
) |
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(242 |
) |
Income (loss) from investments in unconsolidated entities |
|
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(2,429 |
) |
|
|
(1,872 |
) |
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|
(1,168 |
) |
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(261 |
) |
Net gain (loss) on sales of land parcels |
|
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— |
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|
5 |
|
|
|
— |
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|
— |
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Net income |
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|
306,476 |
|
|
|
388,404 |
|
|
|
232,678 |
|
|
|
328,040 |
|
Net (income) loss attributable to Noncontrolling Interests: |
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Operating Partnership |
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(10,027 |
) |
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(13,056 |
) |
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(7,633 |
) |
|
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(10,913 |
) |
Partially Owned Properties |
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(1,583 |
) |
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|
(1,423 |
) |
|
|
(944 |
) |
|
|
(741 |
) |
Net income attributable to controlling interests |
|
|
294,866 |
|
|
|
373,925 |
|
|
|
224,101 |
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|
316,386 |
|
Preferred distributions |
|
|
(1,545 |
) |
|
|
(1,545 |
) |
|
|
(773 |
) |
|
|
(772 |
) |
Net income available to Common Shares |
|
$ |
293,321 |
|
|
$ |
372,380 |
|
|
$ |
223,328 |
|
|
$ |
315,614 |
|
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Earnings per share – basic: |
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|
|
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|
|
|
Net income available to Common Shares |
|
$ |
0.78 |
|
|
$ |
1.00 |
|
|
$ |
0.59 |
|
|
$ |
0.84 |
|
Weighted average Common Shares outstanding |
|
|
375,640 |
|
|
|
373,050 |
|
|
|
375,769 |
|
|
|
373,812 |
|
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|
|
|
|
|
|
Earnings per share – diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Common Shares |
|
$ |
0.78 |
|
|
$ |
1.00 |
|
|
$ |
0.59 |
|
|
$ |
0.84 |
|
Weighted average Common Shares outstanding |
|
|
389,463 |
|
|
|
387,367 |
|
|
|
389,363 |
|
|
|
387,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions declared per Common Share outstanding |
|
$ |
1.25 |
|
|
$ |
1.205 |
|
|
$ |
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) |
||||||||||||||||
|
|
Six Months Ended June 30, |
|
|
Quarter Ended June 30, |
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Net income |
|
$ |
306,476 |
|
|
$ |
388,404 |
|
|
$ |
232,678 |
|
|
$ |
328,040 |
|
Net (income) loss attributable to Noncontrolling Interests – Partially |
|
|
(1,583 |
) |
|
|
(1,423 |
) |
|
|
(944 |
) |
|
|
(741 |
) |
Owned Properties |
||||||||||||||||
Preferred distributions |
|
|
(1,545 |
) |
|
|
(1,545 |
) |
|
|
(773 |
) |
|
|
(772 |
) |
Net income available to Common Shares and Units |
|
|
303,348 |
|
|
|
385,436 |
|
|
|
230,961 |
|
|
|
326,527 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
453,767 |
|
|
|
400,635 |
|
|
|
223,806 |
|
|
|
200,673 |
|
Depreciation – Non-real estate additions |
|
|
(2,114 |
) |
|
|
(2,176 |
) |
|
|
(1,062 |
) |
|
|
(1,076 |
) |
Depreciation – Partially Owned Properties |
|
|
(1,554 |
) |
|
|
(1,682 |
) |
|
|
(661 |
) |
|
|
(854 |
) |
Depreciation – Unconsolidated Properties |
|
|
1,240 |
|
|
|
1,233 |
|
|
|
620 |
|
|
|
616 |
|
Net (gain) loss on sales of unconsolidated entities - operating |
|
|
(9 |
) |
|
|
(4 |
) |
|
|
— |
|
|
|
— |
|
assets |
||||||||||||||||
Net (gain) loss on sales of real estate properties |
|
|
(107,795 |
) |
|
|
(223,695 |
) |
|
|
(107,897 |
) |
|
|
(223,738 |
) |
FFO available to Common Shares and Units |
|
|
646,883 |
|
|
|
559,747 |
|
|
|
345,767 |
|
|
|
302,148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments (see note for additional detail): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment – non-operating assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Write-off of pursuit costs |
|
|
2,515 |
|
|
|
2,647 |
|
|
|
1,052 |
|
|
|
1,316 |
|
Debt extinguishment and preferred share redemption (gains) |
|
|
469 |
|
|
|
264 |
|
|
|
469 |
|
|
|
— |
|
losses |
||||||||||||||||
Non-operating asset (gains) losses |
|
|
(1,330 |
) |
|
|
(23,308 |
) |
|
|
312 |
|
|
|
(24,162 |
) |
Other miscellaneous items |
|
|
(185 |
) |
|
|
3,341 |
|
|
|
186 |
|
|
|
1,099 |
|
Normalized FFO available to Common Shares and Units |
|
$ |
648,352 |
|
|
$ |
542,691 |
|
|
$ |
347,786 |
|
|
$ |
280,401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO |
|
$ |
648,428 |
|
|
$ |
561,292 |
|
|
$ |
346,540 |
|
|
$ |
302,920 |
|
Preferred distributions |
|
|
(1,545 |
) |
|
|
(1,545 |
) |
|
|
(773 |
) |
|
|
(772 |
) |
FFO available to Common Shares and Units |
|
$ |
646,883 |
|
|
$ |
559,747 |
|
|
$ |
345,767 |
|
|
$ |
302,148 |
|
FFO per share and Unit – basic |
|
$ |
1.67 |
|
|
$ |
1.45 |
|
|
$ |
0.89 |
|
|
$ |
0.78 |
|
FFO per share and Unit – diluted |
|
$ |
1.66 |
|
|
$ |
1.45 |
|
|
$ |
0.89 |
|
|
$ |
0.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized FFO |
|
$ |
649,897 |
|
|
$ |
544,236 |
|
|
$ |
348,559 |
|
|
$ |
281,173 |
|
Preferred distributions |
|
|
(1,545 |
) |
|
|
(1,545 |
) |
|
|
(773 |
) |
|
|
(772 |
) |
Normalized FFO available to Common Shares and Units |
|
$ |
648,352 |
|
|
$ |
542,691 |
|
|
$ |
347,786 |
|
|
$ |
280,401 |
|
Normalized FFO per share and Unit – basic |
|
$ |
1.67 |
|
|
$ |
1.41 |
|
|
$ |
0.90 |
|
|
$ |
0.73 |
|
Normalized FFO per share and Unit – diluted |
|
$ |
1.66 |
|
|
$ |
1.40 |
|
|
$ |
0.89 |
|
|
$ |
0.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average Common Shares and Units outstanding – basic |
|
|
387,531 |
|
|
|
385,594 |
|
|
|
387,664 |
|
|
|
385,856 |
|
Weighted average Common Shares and Units outstanding – diluted |
|
|
389,463 |
|
|
|
387,367 |
|
|
|
389,363 |
|
|
|
387,820 |
|
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, |
|
||
|
|
2022 |
|
|
2021 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Land |
|
$ |
5,733,412 |
|
|
$ |
5,814,790 |
|
Depreciable property |
|
|
22,443,313 |
|
|
|
22,370,811 |
|
Projects under development |
|
|
65,161 |
|
|
|
24,307 |
|
Land held for development |
|
|
59,573 |
|
|
|
62,998 |
|
Investment in real estate |
|
|
28,301,459 |
|
|
|
28,272,906 |
|
Accumulated depreciation |
|
|
(8,740,806 |
) |
|
|
(8,354,282 |
) |
Investment in real estate, net |
|
|
19,560,653 |
|
|
|
19,918,624 |
|
Investments in unconsolidated entities1 |
|
|
169,272 |
|
|
|
127,448 |
|
Cash and cash equivalents |
|
|
45,010 |
|
|
|
123,832 |
|
Restricted deposits |
|
|
73,641 |
|
|
|
236,404 |
|
Right-of-use assets |
|
|
468,834 |
|
|
|
474,713 |
|
Other assets |
|
|
256,935 |
|
|
|
288,220 |
|
Total assets |
|
$ |
20,574,345 |
|
|
$ |
21,169,241 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Mortgage notes payable, net |
|
$ |
1,944,404 |
|
|
$ |
2,191,201 |
|
Notes, net |
|
|
5,838,693 |
|
|
|
5,835,222 |
|
Line of credit and commercial paper |
|
|
184,946 |
|
|
|
315,030 |
|
Accounts payable and accrued expenses |
|
|
119,402 |
|
|
|
107,013 |
|
Accrued interest payable |
|
|
69,037 |
|
|
|
69,510 |
|
Lease liabilities |
|
|
310,513 |
|
|
|
312,335 |
|
Other liabilities |
|
|
292,205 |
|
|
|
353,102 |
|
Security deposits |
|
|
69,609 |
|
|
|
66,141 |
|
Distributions payable |
|
|
242,667 |
|
|
|
233,502 |
|
Total liabilities |
|
|
9,071,476 |
|
|
|
9,483,056 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable Noncontrolling Interests – Operating Partnership |
|
|
398,188 |
|
|
|
498,977 |
|
Equity: |
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
Preferred Shares of beneficial interest, $0.01 par value; |
|
|
37,280 |
|
|
|
37,280 |
|
100,000,000 shares authorized; 745,600 shares issued and |
||||||||
outstanding as of June 30, 2022 and December 31, 2021 |
||||||||
Common Shares of beneficial interest, $0.01 par value; |
|
|
3,761 |
|
|
|
3,755 |
|
1,000,000,000 shares authorized; 376,118,433 shares issued |
||||||||
and outstanding as of June 30, 2022 and 375,527,195 |
||||||||
shares issued and outstanding as of December 31, 2021 |
||||||||
Paid in capital |
|
|
9,229,738 |
|
|
|
9,121,122 |
|
Retained earnings |
|
|
1,649,960 |
|
|
|
1,827,063 |
|
Accumulated other comprehensive income (loss) |
|
|
(30,650 |
) |
|
|
(34,272 |
) |
Total shareholders’ equity |
|
|
10,890,089 |
|
|
|
10,954,948 |
|
Noncontrolling Interests: |
|
|
|
|
|
|
|
|
Operating Partnership |
|
|
216,326 |
|
|
|
214,094 |
|
Partially Owned Properties |
|
|
(1,734 |
) |
|
|
18,166 |
|
Total Noncontrolling Interests |
|
|
214,592 |
|
|
|
232,260 |
|
Total equity |
|
|
11,104,681 |
|
|
|
11,187,208 |
|
Total liabilities and equity |
|
$ |
20,574,345 |
|
|
$ |
21,169,241 |
|
| _________________________ | ||||||||
1Includes $110.7 million and $72.5 million in unconsolidated development projects as of June 30, 2022 and December 31, 2021, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated development projects. |
||||||||
Equity Residential Portfolio Summary As of June 30, 2022 |
||||||||||||||||
|
|
|
|
|
|
|
|
|
% of Stabilized |
|
|
Average |
|
|||
|
|
|
|
|
|
Apartment |
|
|
Budgeted |
|
|
Rental |
|
|||
Markets/Metro Areas |
|
Properties |
|
|
Units |
|
|
NOI |
|
|
Rate |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Established Markets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles |
|
|
66 |
|
|
|
15,259 |
|
|
|
18.6 |
% |
|
$ |
2,815 |
|
Orange County |
|
|
13 |
|
|
|
4,028 |
|
|
|
5.3 |
% |
|
|
2,659 |
|
San Diego |
|
|
12 |
|
|
|
2,878 |
|
|
|
4.0 |
% |
|
|
2,744 |
|
Subtotal – Southern California |
|
|
91 |
|
|
|
22,165 |
|
|
|
27.9 |
% |
|
|
2,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco |
|
|
44 |
|
|
|
11,830 |
|
|
|
16.0 |
% |
|
|
3,148 |
|
Washington DC |
|
|
48 |
|
|
|
14,851 |
|
|
|
15.7 |
% |
|
|
2,440 |
|
New York |
|
|
35 |
|
|
|
8,991 |
|
|
|
13.2 |
% |
|
|
3,995 |
|
Boston |
|
|
27 |
|
|
|
7,170 |
|
|
|
11.4 |
% |
|
|
3,215 |
|
Seattle |
|
|
46 |
|
|
|
9,525 |
|
|
|
11.0 |
% |
|
|
2,478 |
|
Subtotal – Established Markets |
|
|
291 |
|
|
|
74,532 |
|
|
|
95.2 |
% |
|
|
2,921 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expansion Markets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denver |
|
|
8 |
|
|
|
2,498 |
|
|
|
2.6 |
% |
|
|
2,278 |
|
Atlanta |
|
|
4 |
|
|
|
1,215 |
|
|
|
1.0 |
% |
|
|
1,993 |
|
Dallas/Ft. Worth |
|
|
4 |
|
|
|
1,241 |
|
|
|
0.8 |
% |
|
|
1,877 |
|
Austin |
|
|
3 |
|
|
|
741 |
|
|
|
0.4 |
% |
|
|
1,724 |
|
Subtotal – Expansion Markets |
|
|
19 |
|
|
|
5,695 |
|
|
|
4.8 |
% |
|
|
2,059 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
310 |
|
|
|
80,227 |
|
|
|
100.0 |
% |
|
$ |
2,860 |
|
|
|
Properties |
|
|
Apartment Units |
|
||
|
|
|
|
|
|
|
|
|
Wholly Owned Properties |
|
|
295 |
|
|
|
77,113 |
|
Partially Owned Properties – Consolidated (1) |
|
|
15 |
|
|
|
3,114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
310 |
|
|
|
80,227 |
|
Note: Projects under development are not included in the Portfolio Summary until construction has been completed. |
|
|
|
(1) |
During the second quarter of 2022, the Company acquired its joint venture partner’s 25% interest in a 432-unit apartment property in Chevy Chase, MD for $32.2 million, and the property is now wholly owned. |
Equity Residential |
||||||||||||||||||
Portfolio Rollforward Q2 2022
|
||||||||||||||||||
|
|
|
|
Properties |
|
|
Apartment Units |
|
|
Sales Price |
|
|
Disposition Yield |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2022 |
|
|
311 |
|
|
|
80,581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dispositions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Rental Properties |
|
|
|
|
(1 |
) |
|
|
(354 |
) |
|
$ |
(265,650 |
) |
|
|
(3.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6/30/2022 |
|
|
310 |
|
|
|
80,227 |
|
|
|
|
|
|
|
|
|
Portfolio Rollforward 2022 ($ in thousands) |
||||||||||||||||||
|
|
|
|
Properties |
|
|
Apartment Units |
|
|
Purchase Price |
|
|
Acquisition Cap Rate |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2021 |
|
|
310 |
|
|
|
80,407 |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Rental Properties |
|
|
|
|
1 |
|
|
|
172 |
|
|
$ |
113,000 |
|
|
|
3.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Price |
|
|
Disposition Yield |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dispositions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Rental Properties |
|
|
|
|
(1 |
) |
|
|
(354 |
) |
|
$ |
(265,650 |
) |
|
|
(3.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Configuration Changes |
|
|
|
|
— |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6/30/2022 |
|
|
310 |
|
|
|
80,227 |
|
|
|
|
|
|
|
|
|
Equity Residential |
||||||||||||||||||||||||||||||||||||||
Second Quarter 2022 vs. Second Quarter 2021
|
||||||||||||||||||||||||||||||||||||||
Second Quarter 2022 |
|
|
Second Quarter 2021 |
|
||||||||||||||||||||||||||||||||||
|
|
Residential |
|
|
% Change |
|
|
Non- Residential |
|
|
% Change |
|
|
Total |
|
|
% Change |
|
|
|
|
Residential |
|
|
Non- Residential |
|
|
Total |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
622,358 |
|
(1) |
13.7% |
|
|
$ |
23,439 |
|
|
12.3% |
|
|
$ |
645,797 |
|
|
13.6% |
|
|
Revenues |
|
$ |
547,502 |
|
|
$ |
20,863 |
|
|
$ |
568,365 |
|
|||
Expenses |
|
$ |
195,372 |
|
|
3.1% |
|
|
$ |
5,993 |
|
|
1.5% |
|
|
$ |
201,365 |
|
|
3.1% |
|
|
Expenses |
|
$ |
189,425 |
|
|
$ |
5,903 |
|
|
$ |
195,328 |
|
|||
NOI |
|
$ |
426,986 |
|
|
19.2% |
|
|
$ |
17,446 |
|
|
16.6% |
|
|
$ |
444,432 |
|
|
19.1% |
|
|
NOI |
|
$ |
358,077 |
|
|
$ |
14,960 |
|
|
$ |
373,037 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
|
$ |
2,900 |
|
|
13.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
$ |
2,566 |
|
|
|
|
|
|
|
|
|
||
Physical Occupancy |
|
96.7 |
% |
|
0.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical Occupancy |
|
96.1 |
% |
|
|
|
|
|
|
|
|
|||
Turnover |
|
11.1 |
% |
|
(0.3%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover |
|
11.4 |
% |
|
|
|
|
|
|
|
|
|||
Second Quarter 2022 vs. First Quarter 2022 Same Store Results/Statistics Including 78,108 Same Store Apartment Units ($ in thousands except for Average Rental Rate) |
||||||||||||||||||||||||||||||||||||||
Second Quarter 2022 |
|
|
First Quarter 2022 |
|
||||||||||||||||||||||||||||||||||
|
|
Residential |
|
|
% Change |
|
|
Non- Residential |
|
|
% Change |
|
|
Total |
|
|
% Change |
|
|
|
|
Residential |
|
|
Non- Residential |
|
|
Total |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
646,187 |
|
(1) |
5.4% |
|
|
$ |
23,929 |
|
|
2.9% |
|
|
$ |
670,116 |
|
|
5.3% |
|
|
Revenues |
|
$ |
612,924 |
|
|
$ |
23,246 |
|
|
$ |
636,170 |
|
|||
Expenses |
|
$ |
204,750 |
|
|
(2.8%) |
|
|
$ |
6,132 |
|
|
(3.1%) |
|
|
$ |
210,882 |
|
|
(2.9%) |
|
|
Expenses |
|
$ |
210,740 |
|
|
$ |
6,331 |
|
|
$ |
217,071 |
|
|||
NOI |
|
$ |
441,437 |
|
|
9.8% |
|
|
$ |
17,797 |
|
|
5.2% |
|
|
$ |
459,234 |
|
|
9.6% |
|
|
NOI |
|
$ |
402,184 |
|
|
$ |
16,915 |
|
|
$ |
419,099 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
|
$ |
2,855 |
|
|
5.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
$ |
2,715 |
|
|
|
|
|
|
|
|
|
||
Physical Occupancy |
|
96.7 |
% |
|
0.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical Occupancy |
|
96.4 |
% |
|
|
|
|
|
|
|
|
|||
Turnover |
|
11.2 |
% |
|
2.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover |
|
8.8 |
% |
|
|
|
|
|
|
|
|
|||
June YTD 2022 vs. June YTD 2021 Same Store Results/Statistics Including 74,057 Same Store Apartment Units ($ in thousands except for Average Rental Rate) |
||||||||||||||||||||||||||||||||||||||
June YTD 2022 |
|
|
June YTD 2021 |
|
||||||||||||||||||||||||||||||||||
|
|
Residential |
|
|
% Change |
|
|
Non- Residential |
|
|
% Change |
|
|
Total |
|
|
% Change |
|
|
|
|
Residential |
|
|
Non- Residential |
|
|
Total |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
1,211,971 |
|
(1) |
10.8% |
|
|
$ |
46,262 |
|
|
9.5% |
|
|
$ |
1,258,233 |
|
|
10.7% |
|
|
Revenues |
|
$ |
1,094,291 |
|
|
$ |
42,246 |
|
|
$ |
1,136,537 |
|
|||
Expenses |
|
$ |
396,666 |
|
|
2.8% |
|
|
$ |
12,183 |
|
|
2.0% |
|
|
$ |
408,849 |
|
|
2.8% |
|
|
Expenses |
|
$ |
385,818 |
|
|
$ |
11,944 |
|
|
$ |
397,762 |
|
|||
NOI |
|
$ |
815,305 |
|
|
15.1% |
|
|
$ |
34,079 |
|
|
12.5% |
|
|
$ |
849,384 |
|
|
15.0% |
|
|
NOI |
|
$ |
708,473 |
|
|
$ |
30,302 |
|
|
$ |
738,775 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
|
$ |
2,827 |
|
|
9.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
$ |
2,580 |
|
|
|
|
|
|
|
|
|
||
Physical Occupancy |
|
96.5 |
% |
|
1.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical Occupancy |
|
95.5 |
% |
|
|
|
|
|
|
|
|
|||
Turnover |
|
19.8 |
% |
|
(1.5%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover |
|
21.3 |
% |
|
|
|
|
|
|
|
|
|||
(1) |
See page 12 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)
|
|||||||||||||||||||||||
|
Second Quarter 2022 vs. Second Quarter 2021 |
|
|
Second Quarter 2022 vs. First Quarter 2022 |
|
|
June YTD 2022 vs. June YTD 2021 |
|
|||||||||||||||
|
74,057 Same Store Apartment Units |
|
|
78,108 Same Store Apartment Units |
|
|
74,057 Same Store Apartment Units |
|
|||||||||||||||
|
Q2 2022 |
|
|
Q2 2021 |
|
|
Q2 2022 |
|
|
Q1 2022 |
|
|
June YTD 2022 |
|
|
June YTD 2021 |
|
||||||
Same Store Residential Revenues (GAAP Basis) |
$ |
622,358 |
|
|
$ |
547,502 |
|
|
$ |
646,187 |
|
|
$ |
612,924 |
|
|
$ |
1,211,971 |
|
|
$ |
1,094,291 |
|
Leasing Concessions amortized |
|
1,703 |
|
|
|
12,871 |
|
|
|
2,103 |
|
|
|
3,971 |
|
|
|
5,298 |
|
|
|
24,381 |
|
Leasing Concessions granted |
|
(1,253 |
) |
|
|
(8,009 |
) |
|
|
(1,447 |
) |
|
|
(1,559 |
) |
|
|
(2,603 |
) |
|
|
(24,794 |
) |
Same Store Residential Revenues with Leasing Concessions on a cash basis |
$ |
622,808 |
|
|
$ |
552,364 |
|
|
$ |
646,843 |
|
|
$ |
615,336 |
|
|
$ |
1,214,666 |
|
|
$ |
1,093,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% change - GAAP revenue |
|
13.7 |
% |
|
|
|
|
|
|
5.4 |
% |
|
|
|
|
|
|
10.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% change - cash revenue |
|
12.8 |
% |
|
|
|
|
|
|
5.1 |
% |
|
|
|
|
|
|
11.0 |
% |
|
|
|
|
(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 74,057 Same Store Apartment Units ($ in thousands) |
||||||||||||||||||||
|
|
Q2 2022 |
|
|
Q1 2022 |
|
|
Q4 2021 |
|
|
Q3 2021 |
|
|
Q2 2021 |
|
|||||
Same store revenues |
|
$ |
645,797 |
|
|
$ |
612,436 |
|
|
$ |
608,065 |
|
|
$ |
589,545 |
|
|
$ |
568,365 |
|
Same store expenses |
|
|
201,365 |
|
|
|
207,484 |
|
|
|
196,936 |
|
|
|
202,510 |
|
|
|
195,328 |
|
Same store NOI (includes Residential and Non-Residential) |
|
$ |
444,432 |
|
|
$ |
404,952 |
|
|
$ |
411,129 |
|
|
$ |
387,035 |
|
|
$ |
373,037 |
|
Equity Residential |
||||||||||||||||
Same Store Resident/Tenant Accounts Receivable Balances
|
||||||||||||||||
|
|
Residential |
|
|
Non-Residential |
|
||||||||||
Balance Sheet (Other assets): |
|
June 30, 2022 |
|
|
March 31, 2022 |
|
|
June 30, 2022 |
|
|
March 31, 2022 |
|
||||
Resident/tenant accounts receivable balances |
$ |
35,243 |
|
|
$ |
42,302 |
|
|
$ |
3,410 |
|
|
$ |
3,631 |
|
|
Allowance for doubtful accounts |
|
(31,690 |
) |
|
|
(37,875 |
) |
|
|
(2,534 |
) |
|
|
(2,379 |
) |
|
Net receivable balances |
$ |
3,553 |
|
(1) |
$ |
4,427 |
|
|
$ |
876 |
|
|
$ |
1,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-line receivable balances |
|
$ |
2,002 |
|
(2) |
$ |
2,452 |
|
|
$ |
12,530 |
|
|
$ |
12,630 |
|
(1) |
The Company held same store Residential security deposits approximating 63.0% of the net Residential receivable balance at June 30, 2022. |
(2) |
Total same store Residential Leasing Concessions granted in the second quarter of 2022 were approximately $1.3 million. The straight-line receivable balance of $2.0 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in the remainder of 2022 and the first half of 2023. |
Same Store Residential Bad Debt Including 74,057 Same Store Apartment Units ($ in thousands) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement (Rental income): |
|
Q2 2022 |
|
|
Q1 2022 |
|
|
Q2 2021 |
|
|||
Bad Debt, Net (1) |
|
$ |
(1,791 |
) |
|
$ |
9,627 |
|
|
$ |
11,929 |
|
% of Same Store Residential Revenues |
|
|
(0.3 |
%) |
|
|
1.6 |
% |
|
|
2.2 |
% |
(1) |
Bad Debt, Net benefited from additional resident payments due to governmental rental assistance programs of approximately $14.7 million and $9.6 million during the second quarter of 2022 and first quarter of 2022, respectively. |
Equity Residential Second Quarter 2022 vs. Second Quarter 2021 Same Store Residential Results/Statistics by Market |
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Year's Quarter |
|
|||||||||||||||||||||
Markets/Metro Areas |
|
Apartment Units |
|
|
Q2 2022 % of Actual NOI |
|
|
Q2 2022 Average Rental Rate |
|
|
Q2 2022 Weighted Average Physical Occupancy % |
|
|
Q2 2022 Turnover |
|
|
Revenues |
|
|
Expenses |
|
|
NOI |
|
|
Average Rental Rate |
|
|
Physical Occupancy |
|
|
Turnover |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles |
|
|
15,259 |
|
|
|
20.9 |
% |
|
$ |
2,815 |
|
|
|
96.7 |
% |
|
|
9.2 |
% |
|
|
17.9 |
% |
(1) |
|
3.3 |
% |
|
|
24.9 |
% |
|
|
17.6 |
% |
|
|
0.3 |
% |
|
|
(1.3 |
%) |
Orange County |
|
|
4,028 |
|
|
|
5.8 |
% |
|
|
2,659 |
|
|
|
97.2 |
% |
|
|
8.8 |
% |
|
|
17.2 |
% |
(1) |
|
4.7 |
% |
|
|
20.9 |
% |
|
|
17.9 |
% |
|
|
(0.7 |
%) |
|
|
0.5 |
% |
San Diego |
|
|
2,706 |
|
|
|
3.9 |
% |
|
|
2,719 |
|
|
|
97.4 |
% |
|
|
9.5 |
% |
|
|
11.9 |
% |
|
|
1.8 |
% |
|
|
15.0 |
% |
|
|
12.9 |
% |
|
|
(0.8 |
%) |
|
|
(0.6 |
%) |
Subtotal – Southern California |
|
|
21,993 |
|
|
|
30.6 |
% |
|
|
2,775 |
|
|
|
96.9 |
% |
|
|
9.2 |
% |
|
|
17.0 |
% |
|
|
3.3 |
% |
|
|
22.8 |
% |
|
|
17.1 |
% |
|
|
0.0 |
% |
|
|
(0.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco |
|
|
11,366 |
|
|
|
17.4 |
% |
|
|
3,152 |
|
|
|
96.7 |
% |
|
|
9.4 |
% |
|
|
12.7 |
% |
(1) |
|
3.5 |
% |
|
|
16.9 |
% |
|
|
11.0 |
% |
|
|
1.4 |
% |
|
|
(2.0 |
%) |
Washington DC |
|
|
14,322 |
|
|
|
15.8 |
% |
|
|
2,432 |
|
|
|
96.8 |
% |
|
|
11.4 |
% |
|
|
5.5 |
% |
|
|
7.9 |
% |
|
|
4.4 |
% |
|
|
5.0 |
% |
|
|
0.5 |
% |
|
|
(0.5 |
%) |
New York |
|
|
8,991 |
|
|
|
13.6 |
% |
|
|
3,995 |
|
|
|
97.1 |
% |
|
|
11.8 |
% |
|
|
19.8 |
% |
|
|
0.7 |
% |
|
|
41.4 |
% |
|
|
17.5 |
% |
|
|
2.0 |
% |
|
|
1.7 |
% |
Seattle |
|
|
9,331 |
|
|
|
11.1 |
% |
|
|
2,476 |
|
|
|
95.3 |
% |
|
|
14.6 |
% |
|
|
11.9 |
% |
|
|
(2.3 |
%) |
|
|
18.6 |
% |
|
|
12.2 |
% |
|
|
(0.3 |
%) |
|
|
0.9 |
% |
Boston |
|
|
6,430 |
|
|
|
9.7 |
% |
|
|
3,153 |
|
|
|
96.8 |
% |
|
|
11.9 |
% |
|
|
12.6 |
% |
|
|
5.4 |
% |
|
|
15.9 |
% |
|
|
11.6 |
% |
|
|
0.8 |
% |
|
|
0.1 |
% |
Denver |
|
|
1,624 |
|
|
|
1.8 |
% |
|
|
2,277 |
|
|
|
96.8 |
% |
|
|
18.2 |
% |
|
|
12.8 |
% |
|
|
7.8 |
% |
|
|
14.8 |
% |
|
|
13.0 |
% |
|
|
(0.2 |
%) |
|
|
2.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
74,057 |
|
|
|
100.0 |
% |
|
$ |
2,900 |
|
|
|
96.7 |
% |
|
|
11.1 |
% |
|
|
13.7 |
% |
(2) |
|
3.1 |
% |
|
|
19.2 |
% |
|
|
13.0 |
% |
|
|
0.6 |
% |
|
|
(0.3 |
%) |
(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 8.8%, 12.8% and 9.8% for Los Angeles, Orange County and San Francisco, respectively. |
(2) |
With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 12.8% in the second quarter of 2022 compared to the second quarter of 2021. See page 12 for additional detail and reconciliations. |
|
|
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the six months ended June 30, 2022. |
|
Equity Residential Second Quarter 2022 vs. First Quarter 2022 Same Store Residential Results/Statistics by Market |
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Quarter |
|
|||||||||||||||||||||
Markets/Metro Areas |
|
Apartment Units |
|
|
Q2 2022 % of Actual NOI |
|
|
Q2 2022 Average Rental Rate |
|
|
Q2 2022 Weighted Average Physical Occupancy % |
|
|
Q2 2022 Turnover |
|
|
Revenues |
|
|
Expenses |
|
|
NOI |
|
|
Average Rental Rate |
|
|
Physical Occupancy |
|
|
Turnover |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles |
|
|
15,259 |
|
|
|
20.2 |
% |
|
$ |
2,815 |
|
|
|
96.7 |
% |
|
|
9.2 |
% |
|
|
8.9 |
% |
(1) |
|
(3.0 |
%) |
|
|
14.5 |
% |
|
|
8.9 |
% |
|
|
0.0 |
% |
|
|
0.9 |
% |
Orange County |
|
|
4,028 |
|
|
|
5.6 |
% |
|
|
2,659 |
|
|
|
97.2 |
% |
|
|
8.8 |
% |
|
|
8.6 |
% |
(1) |
|
(0.7 |
%) |
|
|
11.3 |
% |
|
|
8.5 |
% |
|
|
0.1 |
% |
|
|
2.5 |
% |
San Diego |
|
|
2,706 |
|
|
|
3.8 |
% |
|
|
2,719 |
|
|
|
97.4 |
% |
|
|
9.5 |
% |
|
|
2.5 |
% |
|
|
(6.2 |
%) |
|
|
5.2 |
% |
|
|
2.1 |
% |
|
|
0.5 |
% |
|
|
0.6 |
% |
Subtotal – Southern California |
|
|
21,993 |
|
|
|
29.6 |
% |
|
|
2,775 |
|
|
|
96.9 |
% |
|
|
9.2 |
% |
|
|
8.1 |
% |
|
|
(3.0 |
%) |
|
|
12.6 |
% |
|
|
8.0 |
% |
|
|
0.1 |
% |
|
|
1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco |
|
|
11,366 |
|
|
|
16.9 |
% |
|
|
3,152 |
|
|
|
96.7 |
% |
|
|
9.4 |
% |
|
|
4.8 |
% |
(1) |
|
(4.7 |
%) |
|
|
9.1 |
% |
|
|
4.5 |
% |
|
|
0.3 |
% |
|
|
0.0 |
% |
Washington DC |
|
|
14,535 |
|
|
|
15.4 |
% |
|
|
2,427 |
|
|
|
96.8 |
% |
|
|
11.4 |
% |
|
|
2.5 |
% |
|
|
1.0 |
% |
|
|
3.3 |
% |
|
|
2.6 |
% |
|
|
(0.1 |
%) |
|
|
3.2 |
% |
New York |
|
|
8,991 |
|
|
|
13.1 |
% |
|
|
3,995 |
|
|
|
97.1 |
% |
|
|
11.8 |
% |
|
|
6.9 |
% |
|
|
(5.1 |
%) |
|
|
19.0 |
% |
|
|
6.9 |
% |
|
|
0.1 |
% |
|
|
3.5 |
% |
Seattle |
|
|
9,524 |
|
|
|
11.0 |
% |
|
|
2,478 |
|
|
|
95.3 |
% |
|
|
14.6 |
% |
|
|
4.5 |
% |
|
|
1.4 |
% |
|
|
5.8 |
% |
|
|
3.8 |
% |
|
|
0.7 |
% |
|
|
3.2 |
% |
Boston |
|
|
6,700 |
|
|
|
9.7 |
% |
|
|
3,133 |
|
|
|
96.8 |
% |
|
|
12.0 |
% |
|
|
4.1 |
% |
|
|
(5.3 |
%) |
|
|
8.7 |
% |
|
|
3.0 |
% |
|
|
1.0 |
% |
|
|
4.4 |
% |
Denver |
|
|
2,223 |
|
|
|
2.4 |
% |
|
|
2,289 |
|
|
|
96.6 |
% |
|
|
18.4 |
% |
|
|
2.8 |
% |
|
|
(2.7 |
%) |
|
|
5.1 |
% |
|
|
2.7 |
% |
|
|
(0.1 |
%) |
|
|
7.8 |
% |
Other Expansion Markets |
|
|
2,776 |
|
|
|
1.9 |
% |
|
|
1,870 |
|
|
|
96.7 |
% |
|
|
13.5 |
% |
|
|
2.2 |
% |
|
|
(0.6 |
%) |
|
|
4.5 |
% |
|
|
1.9 |
% |
|
|
0.1 |
% |
|
|
2.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
78,108 |
|
|
|
100.0 |
% |
|
$ |
2,855 |
|
|
|
96.7 |
% |
|
|
11.2 |
% |
|
|
5.4 |
% |
(2) |
|
(2.8 |
%) |
|
|
9.8 |
% |
|
|
5.2 |
% |
|
|
0.3 |
% |
|
|
2.4 |
% |
(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 2.2%, 3.1% and 2.6% for Los Angeles, Orange County and San Francisco, respectively. |
(2) |
With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 5.1% in the second quarter of 2022 compared to the first quarter of 2022. See page 12 for additional detail and reconciliations. |
|
|
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the six months ended June 30, 2022. |
|
|
|
Equity Residential June YTD 2022 vs. June YTD 2021 Same Store Residential Results/Statistics by Market |
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Year |
|
|||||||||||||||||||||
Markets/Metro Areas |
|
Apartment Units |
|
|
June YTD 22 % of Actual NOI |
|
|
June YTD 22 Average Rental Rate |
|
|
June YTD 22 Weighted Average Physical Occupancy % |
|
|
June YTD 22 Turnover |
|
|
Revenues |
|
|
Expenses |
|
|
NOI |
|
|
Average Rental Rate |
|
|
Physical Occupancy |
|
|
Turnover |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles |
|
|
15,259 |
|
|
|
20.5 |
% |
|
$ |
2,700 |
|
|
|
96.7 |
% |
|
|
17.5 |
% |
|
|
13.3 |
% |
(1) |
|
3.0 |
% |
|
|
18.3 |
% |
|
|
12.6 |
% |
|
|
0.6 |
% |
|
|
(3.0 |
%) |
Orange County |
|
|
4,028 |
|
|
|
5.8 |
% |
|
|
2,555 |
|
|
|
97.2 |
% |
|
|
15.1 |
% |
|
|
14.3 |
% |
(1) |
|
3.2 |
% |
|
|
17.7 |
% |
|
|
14.6 |
% |
|
|
(0.2 |
%) |
|
|
(1.0 |
%) |
San Diego |
|
|
2,706 |
|
|
|
4.0 |
% |
|
|
2,693 |
|
|
|
97.1 |
% |
|
|
18.4 |
% |
|
|
11.8 |
% |
|
|
4.1 |
% |
|
|
14.3 |
% |
|
|
12.6 |
% |
|
|
(0.6 |
%) |
|
|
(2.1 |
%) |
Subtotal – Southern California |
|
|
21,993 |
|
|
|
30.3 |
% |
|
|
2,672 |
|
|
|
96.8 |
% |
|
|
17.2 |
% |
|
|
13.3 |
% |
|
|
3.2 |
% |
|
|
17.7 |
% |
|
|
12.9 |
% |
|
|
0.3 |
% |
|
|
(2.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco |
|
|
11,366 |
|
|
|
17.5 |
% |
|
|
3,085 |
|
|
|
96.6 |
% |
|
|
18.8 |
% |
|
|
9.3 |
% |
(1) |
|
3.6 |
% |
|
|
12.0 |
% |
|
|
6.9 |
% |
|
|
2.1 |
% |
|
|
(4.2 |
%) |
Washington DC |
|
|
14,322 |
|
|
|
16.2 |
% |
|
|
2,402 |
|
|
|
96.8 |
% |
|
|
19.5 |
% |
|
|
4.3 |
% |
|
|
5.9 |
% |
|
|
3.4 |
% |
|
|
3.5 |
% |
|
|
0.7 |
% |
|
|
(2.0 |
%) |
New York |
|
|
8,991 |
|
|
|
13.1 |
% |
|
|
3,867 |
|
|
|
97.1 |
% |
|
|
20.1 |
% |
|
|
16.8 |
% |
|
|
1.5 |
% |
|
|
35.0 |
% |
|
|
12.1 |
% |
|
|
4.0 |
% |
|
|
1.6 |
% |
Seattle |
|
|
9,331 |
|
|
|
11.3 |
% |
|
|
2,431 |
|
|
|
95.0 |
% |
|
|
26.1 |
% |
|
|
8.5 |
% |
|
|
(3.9 |
%) |
|
|
14.4 |
% |
|
|
9.2 |
% |
|
|
(0.6 |
%) |
|
|
1.2 |
% |
Boston |
|
|
6,430 |
|
|
|
9.7 |
% |
|
|
3,104 |
|
|
|
96.4 |
% |
|
|
19.5 |
% |
|
|
10.1 |
% |
|
|
5.2 |
% |
|
|
12.5 |
% |
|
|
9.3 |
% |
|
|
0.8 |
% |
|
|
(1.2 |
%) |
Denver |
|
|
1,624 |
|
|
|
1.9 |
% |
|
|
2,242 |
|
|
|
97.1 |
% |
|
|
28.7 |
% |
|
|
12.8 |
% |
|
|
6.9 |
% |
|
|
15.2 |
% |
|
|
12.1 |
% |
|
|
0.5 |
% |
|
|
1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
74,057 |
|
|
|
100.0 |
% |
|
$ |
2,827 |
|
|
|
96.5 |
% |
|
|
19.8 |
% |
|
|
10.8 |
% |
(2) |
|
2.8 |
% |
|
|
15.1 |
% |
|
|
9.6 |
% |
|
|
1.0 |
% |
|
|
(1.5 |
%) |
(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 7.9%, 12.1% and 7.6% for Los Angeles, Orange County and San Francisco, respectively. |
(2) |
With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 11.0% in the six months ended June 30, 2022 compared to the six months ended June 30, 2021. See page 12 for additional detail and reconciliations. |
|
|
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the six months ended June 30, 2022. |
|
Equity Residential |
||||||||||||||||||||||||
Same Store Residential Net Effective Lease Pricing Statistics
|
||||||||||||||||||||||||
|
|
New Lease Change (1) |
|
|
Renewal Rate Achieved (1) |
|
|
Blended Rate (1) |
|
|||||||||||||||
Markets/Metro Areas |
|
Q2 2022 |
|
|
Q1 2022 |
|
|
Q2 2022 |
|
|
Q1 2022 |
|
|
Q2 2022 |
|
|
Q1 2022 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southern California |
|
|
15.7 |
% |
|
|
14.6 |
% |
|
|
7.1 |
% |
|
|
7.2 |
% |
|
|
10.6 |
% |
|
|
10.0 |
% |
San Francisco |
|
|
14.9 |
% |
|
|
12.7 |
% |
|
|
9.1 |
% |
|
|
12.6 |
% |
|
|
11.7 |
% |
|
|
12.6 |
% |
Washington DC |
|
|
11.2 |
% |
|
|
9.0 |
% |
|
|
8.3 |
% |
|
|
7.0 |
% |
|
|
9.6 |
% |
|
|
7.8 |
% |
New York |
|
|
37.9 |
% |
|
|
29.7 |
% |
|
|
19.2 |
% |
|
|
21.4 |
% |
|
|
27.2 |
% |
|
|
24.7 |
% |
Seattle |
|
|
17.5 |
% |
|
|
13.0 |
% |
|
|
13.1 |
% |
|
|
16.4 |
% |
|
|
15.3 |
% |
|
|
14.6 |
% |
Boston |
|
|
17.8 |
% |
|
|
13.1 |
% |
|
|
12.4 |
% |
|
|
15.6 |
% |
|
|
14.9 |
% |
|
|
14.4 |
% |
Denver |
|
|
12.7 |
% |
|
|
11.0 |
% |
|
|
12.3 |
% |
|
|
11.8 |
% |
|
|
12.5 |
% |
|
|
11.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
19.2 |
% |
|
|
15.3 |
% |
|
|
11.2 |
% |
|
|
12.0 |
% |
|
|
14.8 |
% |
|
|
13.3 |
% |
(1) |
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions. See page 3 for July 2022 preliminary data. |
Equity Residential |
||||||||||||||||||||
Second Quarter 2022 vs. Second Quarter 2021
|
||||||||||||||||||||
|
|
Q2 2022 |
|
|
Q2 2021 |
|
|
$ Change (1) |
|
|
% Change |
|
|
% of Q2 2022 Operating Expenses |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate taxes |
|
$ |
86,191 |
|
|
$ |
86,026 |
|
|
$ |
165 |
|
|
|
0.2 |
% |
|
|
42.8 |
% |
On-site payroll |
|
|
37,357 |
|
|
|
38,826 |
|
|
|
(1,469 |
) |
|
|
(3.8 |
%) |
|
|
18.5 |
% |
Utilities |
|
|
30,754 |
|
|
|
27,367 |
|
|
|
3,387 |
|
|
|
12.4 |
% |
|
|
15.3 |
% |
Repairs and maintenance |
|
|
26,457 |
|
|
|
23,646 |
|
|
|
2,811 |
|
|
|
11.9 |
% |
|
|
13.1 |
% |
Insurance |
|
|
7,185 |
|
|
|
6,613 |
|
|
|
572 |
|
|
|
8.6 |
% |
|
|
3.6 |
% |
Leasing and advertising |
|
|
2,420 |
|
|
|
2,670 |
|
|
|
(250 |
) |
|
|
(9.4 |
%) |
|
|
1.2 |
% |
Other on-site operating expenses |
|
|
11,001 |
|
|
|
10,180 |
|
|
|
821 |
|
|
|
8.1 |
% |
|
|
5.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Same Store Operating Expenses (2) (includes Residential and Non-Residential) |
|
$ |
201,365 |
|
|
$ |
195,328 |
|
|
$ |
6,037 |
|
|
|
3.1 |
% |
|
|
100.0 |
% |
June YTD 2022 vs. June YTD 2021 Total Same Store Operating Expenses Including 74,057 Same Store Apartment Units ($ in thousands) |
||||||||||||||||||||
|
|
YTD 2022 |
|
|
YTD 2021 |
|
|
$ Change (1) |
|
|
% Change |
|
|
% of YTD 2022 Operating Expenses |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate taxes |
|
$ |
172,621 |
|
|
$ |
172,052 |
|
|
$ |
569 |
|
|
|
0.3 |
% |
|
|
42.2 |
% |
On-site payroll |
|
|
77,191 |
|
|
|
80,091 |
|
|
|
(2,900 |
) |
|
|
(3.6 |
%) |
|
|
18.9 |
% |
Utilities |
|
|
64,426 |
|
|
|
57,379 |
|
|
|
7,047 |
|
|
|
12.3 |
% |
|
|
15.8 |
% |
Repairs and maintenance |
|
|
51,689 |
|
|
|
47,307 |
|
|
|
4,382 |
|
|
|
9.3 |
% |
|
|
12.6 |
% |
Insurance |
|
|
14,359 |
|
|
|
13,226 |
|
|
|
1,133 |
|
|
|
8.6 |
% |
|
|
3.5 |
% |
Leasing and advertising |
|
|
4,641 |
|
|
|
5,390 |
|
|
|
(749 |
) |
|
|
(13.9 |
%) |
|
|
1.1 |
% |
Other on-site operating expenses |
|
|
23,922 |
|
|
|
22,317 |
|
|
|
1,605 |
|
|
|
7.2 |
% |
|
|
5.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Same Store Operating Expenses (2) (includes Residential and Non-Residential) |
|
$ |
408,849 |
|
|
$ |
397,762 |
|
|
$ |
11,087 |
|
|
|
2.8 |
% |
|
|
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. |
||
|
|
||
|
< | ||