Expects Continued Above Trend Growth in 2023
Equity Residential (NYSE: EQR) today reported results for the quarter and year ended December 31, 2022.
Fourth 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 December 31, |
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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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$ |
0.42 |
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$ |
1.40 |
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$ |
(0.98 |
) |
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(70.0 |
%) |
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Funds from Operations (FFO) per share |
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$ |
0.97 |
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$ |
0.76 |
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$ |
0.21 |
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27.6 |
% |
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Normalized FFO per share |
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$ |
0.94 |
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$ |
0.82 |
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$ |
0.12 |
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14.6 |
% |
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Year Ended December 31, |
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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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$ |
2.05 |
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$ |
3.54 |
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$ |
(1.49 |
) |
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(42.1 |
%) |
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Funds from Operations (FFO) per share |
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$ |
3.53 |
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$ |
2.96 |
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$ |
0.57 |
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19.3 |
% |
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Normalized FFO per share |
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$ |
3.52 |
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$ |
2.99 |
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$ |
0.53 |
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17.7 |
% |
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“We are pleased to have delivered outstanding operating results in 2022. I want to thank my 2,400 hard-working colleagues across Equity Residential for all they do every day to delight our customers,” said Mark J. Parrell, Equity Residential’s President and CEO. “Turning to 2023, we have seen the year begin with the usual sequential improvement in demand and rate. We expect to again deliver above trend same store operating results driven by the momentum embedded in our rent roll from a stellar 2022, continuing solid demand and limited expense growth, but also expect the slowing economy to dampen intraperiod rent growth during 2023. Overall, the fundamentals of our business remain strong. Our affluent resident demographic remains highly employable with the unemployment rate for college graduates at 2%. We also see elevated home ownership costs and manageable competitive new apartment supply as further positive factors.”
Recent Highlights
- The Company reported a 10.6% increase in same store revenue for the full year 2022 compared to the full year 2021, driven by strong demand. Same store expense growth for the full year 2022 compared to the full year 2021 was a moderate 3.6%, benefitting from favorable real estate tax growth and declines in payroll expense primarily due to the Company's various innovation and centralization initiatives.
- The Company has provided full year 2023 guidance with same store revenue growth expected to be between 4.5% and 6.0%.
- During 2022, the Company was a net seller of approximately $633.2 million of attractively priced non-core properties, the proceeds from which were utilized to pay down near-term debt maturities, reducing refinancing needs for 2023.
- In October 2022, the Company further enhanced liquidity and financial flexibility by entering into a new $2.5 billion unsecured revolving credit facility maturing in 2027 that replaces the prior facility of the same size that was set to mature in 2024.
- The Company was recently recognized as one of America’s Most Responsible Companies for 2023 by Newsweek.
Full Year 2023 Guidance
The Company has provided guidance for its full year 2023 same store operating performance, EPS, FFO per share and Normalized FFO per share as listed below:
Same Store (includes Residential and Non-Residential): |
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Physical Occupancy |
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96.2% |
Revenue change (1) |
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4.5% to 6.0% |
Expense change |
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4.0% to 5.0% |
Net Operating Income (NOI) change |
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4.75% to 6.25% |
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EPS (2) |
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$1.49 to $1.59 |
FFO per share (2) |
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$3.66 to $3.76 |
Normalized FFO per share (2) |
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$3.70 to $3.80 |
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Transactions (3): |
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Consolidated rental acquisitions |
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– |
Consolidated rental dispositions |
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– |
| (1) | We anticipate that revenue change will be negatively impacted by approximately 0.9% at the midpoint due to continuing elevated levels of forecasted Bad Debt, Net in 2023, as a result of a slower return to normal resident payment patterns due to local governmental restrictions primarily in California and a lack of governmental rental assistance. |
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| (2) | The Company expects to incur additional casualty losses in the first quarter of 2023 related to Northern and Southern California rainstorms, estimates of which are included in guidance. |
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| (3) | Given current uncertainty in the transaction environment, the Company's full year 2023 acquisition and disposition guidance reflects no anticipated activity. |
The difference between the Company's full year 2022 actual EPS of $2.05 and the full year 2023 EPS guidance midpoint of $1.54 is due primarily to lower expected property sale gains and the items described below.
The difference between the Company's full year 2022 actual FFO of $3.53 per share and the full year 2023 FFO guidance midpoint of $3.71 per share is due primarily to the items described below.
The difference between the Company's full year 2022 actual Normalized FFO of $3.52 per share and the full year 2023 Normalized FFO guidance midpoint of $3.75 per share is due primarily to:
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Positive/(Negative)
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Full Year 2023 vs
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Residential same store NOI |
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$ |
0.26 |
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Lease-Up NOI |
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0.02 |
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2023 and 2022 transaction activity impact on NOI, net |
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(0.02 |
) |
Corporate overhead (1) |
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(0.02 |
) |
Other items |
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(0.01 |
) |
Net |
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$ |
0.23 |
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| (1) | Corporate overhead includes property management and general and administrative expenses. |
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 year ended December 31, 2022 compared to the same periods of 2021 are due primarily to lower property sale gains in the current periods, lower depreciation expense in the prior full year period, the various adjustment items listed on page 27 of this release and the items described below.
The per share changes in FFO for the quarter and year ended December 31, 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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Fourth Quarter 2022 vs.
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Full Year 2022 vs.
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Residential same store NOI |
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$ |
0.12 |
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$ |
0.54 |
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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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0.01 |
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0.05 |
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2022 and 2021 transaction activity impact on NOI, net |
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(0.01 |
) |
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– |
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Interest expense, net |
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0.01 |
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(0.02 |
) |
Corporate overhead |
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– |
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(0.03 |
) |
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Other items (1) |
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(0.01 |
) |
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(0.02 |
) |
Net |
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$ |
0.12 |
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$ |
0.53 |
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| (1) | Included in this category was the negative impact in the fourth quarter of 2022 of approximately $0.01 per share primarily from a casualty loss at an East Coast property and rainstorm damage at properties located in Northern California. |
Same Store Results
The following table shows the total same store results for the periods presented.
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Fourth Quarter 2022 vs.
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Fourth Quarter 2022 vs.
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Full Year 2022 vs.
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Apartment Units |
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75,473 |
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78,107 |
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72,872 |
Physical Occupancy |
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95.9% vs. 96.6% |
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95.9% vs. 96.4% |
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96.4% vs. 96.1% |
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Revenues |
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9.1% |
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0.8% |
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10.6% |
Expenses |
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5.3% |
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(2.7%) |
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3.6% |
NOI |
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10.9% |
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2.4% |
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14.1% |
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 3.7% of total revenues for the year ended December 31, 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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Fourth Quarter 2022 vs.
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Fourth Quarter 2022 vs.
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Full Year 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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10.4 |
% |
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1.7 |
% |
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8.5 |
% |
Leasing Concessions |
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1.0 |
% |
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0.0 |
% |
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1.5 |
% |
Vacancy gain (loss) |
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(1.1 |
%) |
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(0.3 |
%) |
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(0.1 |
%) |
Bad Debt, Net (1) |
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(1.6 |
%) |
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(0.8 |
%) |
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0.2 |
% |
Other (2) |
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0.8 |
% |
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0.2 |
% |
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0.6 |
% |
Same Store Residential Revenues- |
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current period |
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9.5 |
% |
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0.8 |
% |
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10.7 |
% |
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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. 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 12 for detail and reconciliations of Same Store Residential Revenues on a GAAP basis to Same Store Residential Revenues with Leasing Concessions on a cash basis.
Residential Same Store Operating Statistics
The following table includes select operating metrics for Residential Same Store Properties (for 72,872 same store apartment units):
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Q3 2022 |
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Q4 2022 |
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January 2023 (1) |
Physical Occupancy |
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96.5% |
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96.0% |
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95.8% |
Percentage of Residents Renewing by quarter/month |
53.7% |
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56.5% |
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57.0% |
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New Lease Change |
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13.0% |
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2.5% |
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1.4% |
Renewal Rate Achieved |
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10.0% |
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8.5% |
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6.9% |
Blended Rate |
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11.3% |
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5.8% |
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4.6% |
(1) |
January 2023 results are preliminary. |
“Our fourth quarter 2022 and January 2023 operating statistics reflect usual seasonal moderation patterns, though slightly more pronounced. We were, however, pleased that our New Lease Change performance remained positive in the fourth quarter of 2022 and in January 2023, contrary to historical patterns,” said Michael L. Manelis, Equity Residential’s Executive Vice President and Chief Operating Officer. “While it is very early in the year, we are seeing typical sequential improvement in rents and leasing activity with New Lease Change and Blended Rate in January 2023 higher as compared to December 2022, suggesting that the year is beginning in a way consistent with normal demand trends."
Investment Activity
The Company did not acquire any operating properties during the fourth quarter of 2022. During the full year 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 two unconsolidated land parcels for future development for approximately $56.9 million.
The Company did not sell any properties during the fourth quarter of 2022. During the full year 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%.
Capital Markets Activity
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.
Also in October 2022, the Company entered into a new $2.5 billion unsecured revolving credit agreement with a group of 19 financial institutions. The new facility matures October 26, 2027 and has an interest rate of SOFR plus a spread (currently 0.725%) and an annual facility fee (currently 0.125%). Both the spread and the facility fee are dependent on the credit rating of the Company’s long-term debt. This facility replaced the Company’s existing $2.5 billion facility, which was scheduled to mature in November 2024.
First Quarter 2023 Guidance
The Company has established guidance ranges for the first quarter of 2023 EPS, FFO per share and Normalized FFO per share as listed below:
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Q1 2023
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EPS |
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$0.28 to $0.32 |
FFO per share |
|
$0.83 to $0.87 |
Normalized FFO per share |
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$0.84 to $0.88 |
The difference between the fourth quarter of 2022 actual EPS of $0.42 and the first quarter of 2023 EPS guidance midpoint of $0.30 is due primarily to the items described below.
The difference between the fourth quarter of 2022 actual FFO of $0.97 per share and the first quarter of 2023 FFO guidance midpoint of $0.85 per share is due primarily to the items described below.
The difference between the fourth quarter of 2022 actual Normalized FFO of $0.94 per share and the first quarter of 2023 Normalized FFO guidance midpoint of $0.86 per share is due primarily to:
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Positive/(Negative)
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First Quarter 2023 vs.
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Residential same store NOI |
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$ |
(0.04 |
) |
Interest expense, net |
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(0.01 |
) |
Corporate overhead |
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|
(0.03 |
) |
Net |
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$ |
(0.08 |
) |
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 79,597 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin. For more information on Equity Residential, please visit our website at www.equityapartments.com.
Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential’s management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, government regulations (such as eviction moratoriums) and competition. These and other risks and uncertainties are described under the heading “Risk Factors” in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityapartments.com. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
A live web cast of the Company’s conference call discussing these results will take place tomorrow, Friday, February 10, 2023 at 10:00 a.m. CT. Please visit the Investor section of the Company’s website at www.equityapartments.com for the webcast link.
Equity Residential Consolidated Statements of Operations (Amounts in thousands except per share data) (Unaudited) |
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Year Ended December 31, |
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Quarter Ended December 31, |
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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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$ |
2,735,180 |
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$ |
2,463,997 |
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$ |
699,703 |
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$ |
645,130 |
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EXPENSES |
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Property and maintenance |
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483,865 |
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453,532 |
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118,588 |
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112,271 |
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Real estate taxes and insurance |
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388,412 |
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397,105 |
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85,513 |
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|
99,325 |
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Property management |
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110,304 |
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98,155 |
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27,269 |
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23,798 |
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General and administrative |
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58,710 |
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56,506 |
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11,677 |
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13,404 |
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Depreciation |
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882,168 |
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|
838,272 |
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214,272 |
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222,240 |
|
Total expenses |
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1,923,459 |
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1,843,570 |
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457,319 |
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471,038 |
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Net gain (loss) on sales of real estate properties |
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304,325 |
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1,072,183 |
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(21 |
) |
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484,560 |
|
Impairment |
|
|
— |
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(16,769 |
) |
|
|
— |
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(16,769 |
) |
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Operating income |
|
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1,116,046 |
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1,675,841 |
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242,363 |
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641,883 |
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Interest and other income |
|
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2,193 |
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25,666 |
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|
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(2,651 |
) |
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|
373 |
|
Other expenses |
|
|
(13,664 |
) |
|
|
(19,275 |
) |
|
|
(4,473 |
) |
|
|
(8,367 |
) |
Interest: |
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Expense incurred, net |
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(282,920 |
) |
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(272,473 |
) |
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|
(65,827 |
) |
|
|
(69,740 |
) |
Amortization of deferred financing costs |
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(8,729 |
) |
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(8,737 |
) |
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(2,308 |
) |
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(2,565 |
) |
Income before income and other taxes, income (loss) from |
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investments in unconsolidated entities and net gain (loss) |
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on sales of land parcels |
|
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812,926 |
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1,401,022 |
|
|
|
167,104 |
|
|
|
561,584 |
|
Income and other tax (expense) benefit |
|
|
(900 |
) |
|
|
(915 |
) |
|
|
(175 |
) |
|
|
(236 |
) |
Income (loss) from investments in unconsolidated entities |
|
|
(5,031 |
) |
|
|
(3,398 |
) |
|
|
(1,575 |
) |
|
|
(370 |
) |
Net gain (loss) on sales of land parcels |
|
|
— |
|
|
|
5 |
|
|
|
— |
|
|
|
— |
|
Net income |
|
|
806,995 |
|
|
|
1,396,714 |
|
|
|
165,354 |
|
|
|
560,978 |
|
Net (income) loss attributable to Noncontrolling Interests: |
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Operating Partnership |
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(26,310 |
) |
|
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(45,900 |
) |
|
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(5,286 |
) |
|
|
(17,997 |
) |
Partially Owned Properties |
|
|
(3,774 |
) |
|
|
(17,964 |
) |
|
|
(1,048 |
) |
|
|
(16,007 |
) |
Net income attributable to controlling interests |
|
|
776,911 |
|
|
|
1,332,850 |
|
|
|
159,020 |
|
|
|
526,974 |
|
Preferred distributions |
|
|
(3,090 |
) |
|
|
(3,090 |
) |
|
|
(772 |
) |
|
|
(772 |
) |
Net income available to Common Shares |
|
$ |
773,821 |
|
|
$ |
1,329,760 |
|
|
$ |
158,248 |
|
|
$ |
526,202 |
|
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Earnings per share – basic: |
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|
||||
Net income available to Common Shares |
|
$ |
2.06 |
|
|
$ |
3.56 |
|
|
$ |
0.42 |
|
|
$ |
1.40 |
|
Weighted average Common Shares outstanding |
|
|
376,209 |
|
|
|
373,833 |
|
|
|
377,689 |
|
|
|
374,897 |
|
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|
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Earnings per share – diluted: |
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|
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|
||||
Net income available to Common Shares |
|
$ |
2.05 |
|
|
$ |
3.54 |
|
|
$ |
0.42 |
|
|
$ |
1.40 |
|
Weighted average Common Shares outstanding |
|
|
389,450 |
|
|
|
388,089 |
|
|
|
390,245 |
|
|
|
389,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Distributions declared per Common Share outstanding |
|
$ |
2.50 |
|
|
$ |
2.41 |
|
|
$ |
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) |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
Year Ended December 31, |
|
|
Quarter Ended December 31, |
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Net income |
|
$ |
806,995 |
|
|
$ |
1,396,714 |
|
|
$ |
165,354 |
|
|
$ |
560,978 |
|
Net (income) loss attributable to Noncontrolling Interests – Partially |
||||||||||||||||
Owned Properties |
|
(3,774 |
) |
|
|
(17,964 |
) |
|
|
(1,048 |
) |
|
|
(16,007 |
) |
|
Preferred distributions |
|
|
(3,090 |
) |
|
|
(3,090 |
) |
|
|
(772 |
) |
|
|
(772 |
) |
Net income available to Common Shares and Units |
|
|
800,131 |
|
|
|
1,375,660 |
|
|
|
163,534 |
|
|
|
544,199 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation |
|
|
882,168 |
|
|
|
838,272 |
|
|
|
214,272 |
|
|
|
222,240 |
|
Depreciation – Non-real estate additions |
|
|
(4,306 |
) |
|
|
(4,277 |
) |
|
|
(1,117 |
) |
|
|
(1,049 |
) |
Depreciation – Partially Owned Properties |
|
|
(2,640 |
) |
|
|
(3,673 |
) |
|
|
(543 |
) |
|
|
(997 |
) |
Depreciation – Unconsolidated Properties |
|
|
2,898 |
|
|
|
2,487 |
|
|
|
1,001 |
|
|
|
620 |
|
Net (gain) loss on sales of unconsolidated entities - operating |
||||||||||||||||
assets |
|
|
(9 |
) |
|
|
(1,304 |
) |
|
|
— |
|
|
|
(1,300 |
) |
Net (gain) loss on sales of real estate properties |
|
|
(304,325 |
) |
|
|
(1,072,183 |
) |
|
|
21 |
|
|
|
(484,560 |
) |
Noncontrolling Interests share of gain (loss) on sales |
||||||||||||||||
of real estate properties |
|
|
— |
|
|
|
15,650 |
|
|
|
— |
|
|
|
15,650 |
|
FFO available to Common Shares and Units |
|
|
1,373,917 |
|
|
|
1,150,632 |
|
|
|
377,168 |
|
|
|
294,803 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments (see note for additional detail): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impairment – non-operating real estate assets |
|
|
— |
|
|
|
16,769 |
|
|
|
— |
|
|
|
16,769 |
|
Write-off of pursuit costs |
|
|
4,780 |
|
|
|
6,526 |
|
|
1,484 |
|
|
|
2,969 |
|
|
Debt extinguishment and preferred share redemption (gains) |
||||||||||||||||
losses |
|
|
4,664 |
|
|
|
744 |
|
|
|
348 |
|
|
|
480 |
|
Non-operating asset (gains) losses |
|
|
2,368 |
|
|
|
(22,283 |
) |
|
|
3,542 |
|
|
|
731 |
|
Other miscellaneous items |
|
|
(13,901 |
) |
|
|
8,976 |
|
|
|
(15,733 |
) |
|
|
4,456 |
|
Normalized FFO available to Common Shares and Units |
|
$ |
1,371,828 |
|
|
$ |
1,161,364 |
|
|
$ |
366,809 |
|
|
$ |
320,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
FFO |
|
$ |
1,377,007 |
|
|
$ |
1,153,722 |
|
|
$ |
377,940 |
|
|
$ |
295,575 |
|
Preferred distributions |
|
|
(3,090 |
) |
|
|
(3,090 |
) |
|
|
(772 |
) |
|
|
(772 |
) |
FFO available to Common Shares and Units |
|
$ |
1,373,917 |
|
|
$ |
1,150,632 |
|
|
$ |
377,168 |
|
|
$ |
294,803 |
|
FFO per share and Unit – basic |
|
$ |
3.54 |
|
|
$ |
2.98 |
|
|
$ |
0.97 |
|
|
$ |
0.76 |
|
FFO per share and Unit – diluted |
|
$ |
3.53 |
|
|
$ |
2.96 |
|
|
$ |
0.97 |
|
|
$ |
0.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Normalized FFO |
|
$ |
1,374,918 |
|
|
$ |
1,164,454 |
|
|
$ |
367,581 |
|
|
$ |
320,980 |
|
Preferred distributions |
|
|
(3,090 |
) |
|
|
(3,090 |
) |
|
|
(772 |
) |
|
|
(772 |
) |
Normalized FFO available to Common Shares and Units |
|
$ |
1,371,828 |
|
|
$ |
1,161,364 |
|
|
$ |
366,809 |
|
|
$ |
320,208 |
|
Normalized FFO per share and Unit – basic |
|
$ |
3.54 |
|
|
$ |
3.01 |
|
|
$ |
0.94 |
|
|
$ |
0.83 |
|
Normalized FFO per share and Unit – diluted |
|
$ |
3.52 |
|
|
$ |
2.99 |
|
|
$ |
0.94 |
|
|
$ |
0.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average Common Shares and Units outstanding – basic |
|
|
388,045 |
|
|
|
386,096 |
|
|
|
389,357 |
|
|
|
386,851 |
|
Weighted average Common Shares and Units outstanding – diluted |
|
389,450 |
|
|
|
388,089 |
|
|
|
390,245 |
|
|
|
389,000 |
|
|
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) |
||||||||
|
|
|
|
|
|
|
||
|
|
December 31, |
|
|
December 31, |
|
||
|
|
2022 |
|
|
2021 |
|
||
ASSETS |
|
|
|
|
|
|
||
Land |
|
$ |
5,580,878 |
|
|
$ |
5,814,790 |
|
Depreciable property |
|
|
22,334,369 |
|
|
|
22,370,811 |
|
Projects under development |
|
|
112,940 |
|
|
|
24,307 |
|
Land held for development |
|
|
60,567 |
|
|
|
62,998 |
|
Investment in real estate |
|
|
28,088,754 |
|
|
|
28,272,906 |
|
Accumulated depreciation |
|
|
(9,027,850 |
) |
|
|
(8,354,282 |
) |
Investment in real estate, net |
|
|
19,060,904 |
|
|
|
19,918,624 |
|
Investments in unconsolidated entities1 |
|
|
279,024 |
|
|
|
127,448 |
|
Cash and cash equivalents |
|
|
53,869 |
|
|
|
123,832 |
|
Restricted deposits |
|
|
83,303 |
|
|
|
236,404 |
|
Right-of-use assets |
|
|
462,956 |
|
|
|
474,713 |
|
Other assets |
|
|
278,206 |
|
|
|
288,220 |
|
Total assets |
|
$ |
20,218,262 |
|
|
$ |
21,169,241 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Liabilities: |
|
|
|
|
|
|
||
Mortgage notes payable, net |
|
$ |
1,953,438 |
|
|
$ |
2,191,201 |
|
Notes, net |
|
|
5,342,329 |
|
|
|
5,835,222 |
|
Line of credit and commercial paper |
|
|
129,955 |
|
|
|
315,030 |
|
Accounts payable and accrued expenses |
|
|
96,028 |
|
|
|
107,013 |
|
Accrued interest payable |
|
|
66,310 |
|
|
|
69,510 |
|
Lease liabilities |
|
|
308,748 |
|
|
|
312,335 |
|
Other liabilities |
|
|
306,941 |
|
|
|
353,102 |
|
Security deposits |
|
|
68,940 |
|
|
|
66,141 |
|
Distributions payable |
|
|
244,621 |
|
|
|
233,502 |
|
Total liabilities |
|
|
8,517,310 |
|
|
|
9,483,056 |
|
|
|
|
|
|
|
|
||
Commitments and contingencies |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Redeemable Noncontrolling Interests – Operating Partnership |
|
|
318,273 |
|
|
|
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 December 31, 2022 and December 31, 2021 |
|
|
37,280 |
|
|
|
37,280 |
|
Common Shares of beneficial interest, $0.01 par value; |
||||||||
1,000,000,000 shares authorized; 378,429,708 shares issued |
||||||||
and outstanding as of December 31, 2022 and 375,527,195 |
||||||||
shares issued and outstanding as of December 31, 2021 |
|
|
3,784 |
|
|
|
3,755 |
|
Paid in capital |
|
|
9,476,085 |
|
|
|
9,121,122 |
|
Retained earnings |
|
|
1,658,837 |
|
|
|
1,827,063 |
|
Accumulated other comprehensive income (loss) |
|
|
(2,547 |
) |
|
|
(34,272 |
) |
Total shareholders’ equity |
|
|
11,173,439 |
|
|
|
10,954,948 |
|
Noncontrolling Interests: |
|
|
|
|
|
|
||
Operating Partnership |
|
|
209,961 |
|
|
|
214,094 |
|
Partially Owned Properties |
|
|
(721 |
) |
|
|
18,166 |
|
Total Noncontrolling Interests |
|
|
209,240 |
|
|
|
232,260 |
|
Total equity |
|
|
11,382,679 |
|
|
|
11,187,208 |
|
Total liabilities and equity |
|
$ |
20,218,262 |
|
|
$ |
21,169,241 |
|
1 Includes $218.0 million and $72.5 million in unconsolidated development projects as of December 31, 2022 and December 31, 2021, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects. |
| Equity Residential
Portfolio Summary As of December 31, 2022 |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
% of
|
|
|
Average |
|
||||
|
|
|
|
|
Apartment |
|
|
Budgeted |
|
|
Rental |
|
||||
Markets/Metro Areas |
|
Properties |
|
|
Units |
|
|
NOI |
|
|
Rate |
|
||||
Established Markets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Los Angeles |
|
|
66 |
|
|
|
15,259 |
|
|
|
18.2 |
% |
|
$ |
2,773 |
|
Orange County |
|
|
13 |
|
|
|
4,028 |
|
|
|
5.2 |
% |
|
|
2,685 |
|
San Diego |
|
|
12 |
|
|
|
2,878 |
|
|
|
4.0 |
% |
|
|
2,894 |
|
Subtotal – Southern California |
|
|
91 |
|
|
|
22,165 |
|
|
|
27.4 |
% |
|
|
2,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
San Francisco |
|
|
44 |
|
|
|
11,790 |
|
|
|
15.9 |
% |
|
|
3,229 |
|
Washington, D.C. |
|
|
47 |
|
|
|
14,716 |
|
|
|
15.3 |
% |
|
|
2,531 |
|
New York |
|
|
34 |
|
|
|
8,536 |
|
|
|
14.0 |
% |
|
|
4,378 |
|
Boston |
|
|
27 |
|
|
|
7,170 |
|
|
|
11.5 |
% |
|
|
3,373 |
|
Seattle |
|
|
46 |
|
|
|
9,525 |
|
|
|
11.0 |
% |
|
|
2,575 |
|
Subtotal – Established Markets |
|
|
289 |
|
|
|
73,902 |
|
|
|
95.1 |
% |
|
|
3,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expansion Markets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Denver |
|
|
8 |
|
|
|
2,498 |
|
|
|
2.7 |
% |
|
|
2,372 |
|
Atlanta |
|
|
4 |
|
|
|
1,215 |
|
|
|
1.1 |
% |
|
|
2,120 |
|
Dallas/Ft. Worth |
|
|
4 |
|
|
|
1,241 |
|
|
|
0.7 |
% |
|
|
1,904 |
|
Austin |
|
|
3 |
|
|
|
741 |
|
|
|
0.4 |
% |
|
|
1,853 |
|
Subtotal – Expansion Markets |
|
|
19 |
|
|
|
5,695 |
|
|
|
4.9 |
% |
|
|
2,153 |
|
Total |
|
|
308 |
|
|
|
79,597 |
|
|
|
100.0 |
% |
|
$ |
2,956 |
|
|
|
Properties |
|
Apartment Units |
Wholly Owned Properties |
|
293 |
|
76,483 |
Partially Owned Properties – Consolidated |
|
15 |
|
3,114 |
|
|
308 |
|
79,597 |
Note: Projects under development are not included in the Portfolio Summary until construction has been completed.
Equity Residential |
||||||||
Portfolio Rollforward Q4 2022 ($ in thousands) |
||||||||
|
|
|
|
|
|
|
||
|
|
Properties |
|
|
Apartment
|
|
||
9/30/2022 |
|
|
308 |
|
|
|
79,594 |
|
|
|
|
|
|
|
|
||
Configuration Changes |
|
|
— |
|
|
|
3 |
|
12/31/2022 |
|
|
308 |
|
|
|
79,597 |
|
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 |
|
|
— |
|
|
|
(37 |
) |
|
|
|
|
|
|
||
12/31/2022 |
|
|
308 |
|
|
|
79,597 |
|
|
|
|
|
|
|
||
(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 $65.9 million as of December 31, 2022. |
||
Equity Residential |
||||||||||||||||||||||||||||||||
Fourth Quarter 2022 vs. Fourth Quarter 2021 Same Store Results/Statistics Including 75,473 Same Store Apartment Units ($ in thousands except for Average Rental Rate) |
||||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Fourth Quarter 2022 |
|
Fourth Quarter 2021 |
|
|||||||||||||||||||||||||||||
|
|
Residential |
|
|
%
|
|
Non-
|
|
|
%
|
|
Total |
|
|
%
|
|
|
|
Residential |
|
|
Non-
|
|
|
Total |
|
||||||
Revenues |
|
$ |
643,790 |
|
(1) |
9.5% |
|
$ |
23,662 |
|
|
0.2% |
|
$ |
667,452 |
|
|
9.1% |
|
Revenues |
|
$ |
588,014 |
|
|
$ |
23,622 |
|
|
$ |
611,636 |
|
Expenses |
|
$ |
200,353 |
|
|
5.3% |
|
$ |
6,348 |
|
|
4.8% |
|
$ |
206,701 |
|
|
5.3% |
|
Expenses |
|
$ |
190,219 |
|
|
$ |
6,056 |
|
|
$ |
196,275 |
|
NOI |
|
$ |
443,437 |
|
|
11.5% |
|
$ |
17,314 |
|
|
(1.4%) |
|
$ |
460,751 |
|
|
10.9% |
|
NOI |
|
$ |
397,795 |
|
|
$ |
17,566 |
|
|
$ |
415,361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average Rental Rate |
|
$ |
2,966 |
|
|
10.3% |
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
|
$ |
2,689 |
|
|
|
|
|
|
|
||||
Physical Occupancy |
|
|
95.9 |
% |
|
(0.7%) |
|
|
|
|
|
|
|
|
|
|
|
Physical Occupancy |
|
|
96.6 |
% |
|
|
|
|
|
|
||||
Turnover |
|
|
9.3 |
% |
|
(0.3%) |
|
|
|
|
|
|
|
|
|
|
|
Turnover |
|
|
9.6 |
% |
|
|
|
|
|
|
||||
Fourth Quarter 2022 vs. Third Quarter 2022 Same Store Results/Statistics Including 78,107 Same Store Apartment Units ($ in thousands except for Average Rental Rate) |
||||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Fourth Quarter 2022 |
|
Third Quarter 2022 |
|
|||||||||||||||||||||||||||||
|
|
Residential |
|
|
%
|
|
Non-
|
|
|
%
|
|
Total |
|
|
%
|
|
|
|
Residential |
|
|
Non-
|
|
|
Total |
|
||||||
Revenues |
|
$ |
660,913 |
|
(1) |
0.8% |
|
$ |
24,330 |
|
|
0.8% |
|
$ |
685,243 |
|
|
0.8% |
|
Revenues |
|
$ |
655,951 |
|
|
$ |
24,125 |
|
|
$ |
680,076 |
|
Expenses |
|
$ |
205,678 |
|
|
(2.8%) |
|
$ |
6,426 |
|
|
2.6% |
|
$ |
212,104 |
|
|
(2.7%) |
|
Expenses |
|
$ |
211,654 |
|
|
$ |
6,263 |
|
|
$ |
217,917 |
|
NOI |
|
$ |
455,235 |
|
|
2.5% |
|
$ |
17,904 |
|
|
0.2% |
|
$ |
473,139 |
|
|
2.4% |
|
NOI |
|
$ |
444,297 |
|
|
$ |
17,862 |
|
|
$ |
462,159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average Rental Rate |
|
$ |
2,944 |
|
|
1.3% |
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
|
$ |
2,905 |
|
|
|
|
|
|
|
||||
Physical Occupancy |
|
|
95.9 |
% |
|
(0.5%) |
|
|
|
|
|
|
|
|
|
|
|
Physical Occupancy |
|
|
96.4 |
% |
|
|
|
|
|
|
||||
Turnover |
|
|
9.4 |
% |
|
(4.6%) |
|
|
|
|
|
|
|
|
|
|
|
Turnover |
|
|
14.0 |
% |
|
|
|
|
|
|
||||
2022 vs. 2021 Same Store Results/Statistics Including 72,872 Same Store Apartment Units ($ in thousands except for Average Rental Rate) |
||||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
2022 |
|
2021 |
|
|||||||||||||||||||||||||||||
|
|
Residential |
|
|
%
|
|
Non-
|
|
|
%
|
|
Total |
|
|
%
|
|
|
|
Residential |
|
|
Non-
|
|
|
Total |
|
||||||
Revenues |
|
$ |
2,441,522 |
|
(1) |
10.7% |
|
$ |
92,055 |
|
|
5.8% |
|
$ |
2,533,577 |
|
|
10.6% |
|
Revenues |
|
$ |
2,204,625 |
|
|
$ |
86,979 |
|
|
$ |
2,291,604 |
|
Expenses |
|
$ |
778,206 |
|
|
3.6% |
|
$ |
24,085 |
|
|
3.6% |
|
$ |
802,291 |
|
|
3.6% |
|
Expenses |
|
$ |
751,250 |
|
|
$ |
23,254 |
|
|
$ |
774,504 |
|
NOI |
|
$ |
1,663,316 |
|
|
14.4% |
|
$ |
67,970 |
|
|
6.7% |
|
$ |
1,731,286 |
|
|
14.1% |
|
NOI |
|
$ |
1,453,375 |
|
|
$ |
63,725 |
|
|
$ |
1,517,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average Rental Rate |
|
$ |
2,898 |
|
|
10.4% |
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
|
$ |
2,625 |
|
|
|
|
|
|
|
||||
Physical Occupancy |
|
|
96.4 |
% |
|
0.3% |
|
|
|
|
|
|
|
|
|
|
|
Physical Occupancy |
|
|
96.1 |
% |
|
|
|
|
|
|
||||
Turnover |
|
|
42.8 |
% |
|
(1.9%) |
|
|
|
|
|
|
|
|
|
|
|
Turnover |
|
|
44.7 |
% |
|
|
|
|
|
|
||||
(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) ($ in thousands) |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Fourth Quarter 2022 vs. Fourth Quarter 2021 |
|
|
Fourth Quarter 2022 vs. Third Quarter 2022 |
|
|
2022 vs. 2021 |
|
|||||||||||||||
|
75,473 Same Store Apartment Units |
|
|
78,107 Same Store Apartment Units |
|
|
72,872 Same Store Apartment Units |
|
|||||||||||||||
|
Q4 2022 |
|
|
Q4 2021 |
|
|
Q4 2022 |
|
|
Q3 2022 |
|
|
2022 |
|
|
2021 |
|
||||||
Same Store Residential Revenues (GAAP Basis) |
$ |
643,790 |
|
|
$ |
588,014 |
|
|
$ |
660,913 |
|
|
$ |
655,951 |
|
|
$ |
2,441,522 |
|
|
$ |
2,204,625 |
|
Leasing Concessions amortized |
|
1,346 |
|
|
|
7,050 |
|
|
|
1,697 |
|
|
|
1,652 |
|
|
|
7,420 |
|
|
|
41,344 |
|
Leasing Concessions granted |
|
(2,714 |
) |
|
|
(569 |
) |
|
|
(2,921 |
) |
|
|
(641 |
) |
|
|
(5,557 |
) |
|
|
(26,834 |
) |
Same Store Residential Revenues with Leasing |
|||||||||||||||||||||||
Concessions on a cash basis |
$ |
642,422 |
|
|
$ |
594,495 |
|
|
$ |
659,689 |
|
|
$ |
656,962 |
|
|
$ |
2,443,385 |
|
|
$ |
2,219,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
% change - GAAP revenue |
|
9.5 |
% |
|
|
|
|
|
0.8 |
% |
|
|
|
|
|
10.7 |
% |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
% change - cash revenue |
|
8.1 |
% |
|
|
|
|
|
0.4 |
% |
|
|
|
|
|
10.1 |
% |
|
|
|
|||
(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 72,872 Same Store Apartment Units ($ in thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4 2022 |
|
|
Q3 2022 |
|
|
Q2 2022 |
|
|
Q1 2022 |
|
|
Q4 2021 |
|
|||||
Same store revenues |
|
$ |
651,396 |
|
|
$ |
647,237 |
|
|
$ |
633,755 |
|
|
$ |
601,189 |
|
|
$ |
597,100 |
|
Same store expenses |
|
|
201,304 |
|
|
|
203,749 |
|
|
|
195,775 |
|
|
|
201,463 |
|
|
|
191,032 |
|
Same store NOI |
||||||||||||||||||||
(includes Residential and Non-Residential) |
|
$ |
450,092 |
|
|
$ |
443,488 |
|
|
$ |
437,980 |
|
|
$ |
399,726 |
|
|
$ |
406,068 |
|
Equity Residential |
||||||||||||||||
Same Store Resident/Tenant Accounts Receivable Balances Including 72,872 Same Store Apartment Units ($ in thousands) |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
Residential |
|
|
Non-Residential |
|
||||||||||
Balance Sheet (Other assets): |
|
December 31, 2022 |
|
|
September 30, 2022 |
|
|
December 31, 2022 |
|
|
September 30, 2022 |
|
||||
Resident/tenant accounts receivable balances |
$ |
34,240 |
|
|
$ |
33,159 |
|
|
$ |
2,767 |
|
|
$ |
3,915 |
|
|
Allowance for doubtful accounts |
|
(30,265 |
) |
|
|
(29,212 |
) |
|
|
(2,107 |
) |
|
|
(2,735 |
) |
|
Net receivable balances |
$ |
3,975 |
|
|
$ |
3,947 |
|
|
$ |
660 |
|
|
$ |
1,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Straight-line receivable balances |
|
$ |
2,746 |
|
(1) |
$ |
1,496 |
|
|
$ |
12,139 |
|
|
$ |
12,433 |
|
(1) |
|
Total same store Residential Leasing Concessions granted in the fourth quarter of 2022 were approximately $2.5 million. The straight-line receivable balance of $2.7 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in 2023. |
Same Store Residential Bad Debt Including 72,872 Same Store Apartment Units ($ in thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income Statement (Rental income) (1): |
|
Q4 2022 |
|
|
Q3 2022 |
|
|
Q4 2021 |
|
|
2022 |
|
|
2021 |
|
|||||
Bad Debt, Net |
|
$ |
10,704 |
|
|
$ |
5,860 |
|
|
$ |
1,239 |
|
|
$ |
24,707 |
|
|
$ |
29,606 |
|
% of Same Store Residential Revenues |
|
|
1.7 |
% |
|
|
0.9 |
% |
|
|
0.2 |
% |
|
|
1.0 |
% |
|
|
1.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Governmental rental assistance received |
|
$ |
1,945 |
|
|
$ |
6,742 |
|
|
$ |
16,008 |
|
|
$ |
32,426 |
|
|
$ |
32,793 |
|
(1) |
Bad Debt, Net benefited in 2021 and the first half of 2022 from additional resident payments due to governmental rental assistance programs. The increases in Bad Debt, Net as well as % of Same Store Residential Revenues during the third and fourth quarters of 2022 were primarily due to these programs winding down. |
| Equity Residential
Fourth Quarter 2022 vs. Fourth Quarter 2021 Same Store Residential Results/Statistics by Market |
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Year's Quarter |
|
||||||||||||||||||||||||||
Markets/Metro Areas |
|
Apartment
|
|
|
Q4 2022
|
|
|
Q4 2022
|
|
|
Q4 2022
|
|
|
Q4 2022
|
|
|
Revenues |
|
|
Expenses |
|
|
NOI |
|
|
Average
|
|
|
Physical
|
|
|
Turnover |
|
|||||||||||
Los Angeles |
|
|
14,662 |
|
|
|
18.6 |
% |
|
$ |
2,755 |
|
|
|
95.8 |
% |
|
|
10.0 |
% |
|
|
1.1 |
% |
(1) |
|
4.6 |
% |
|
|
(0.3 |
%) |
|
|
2.5 |
% |
|
|
(1.4 |
%) |
|
|
0.6 |
% |
Orange County |
|
|
4,028 |
|
|
|
5.6 |
% |
|
|
2,685 |
|
|
|
96.7 |
% |
|
|
8.7 |
% |
|
|
9.5 |
% |
(1) |
|
8.8 |
% |
|
|
9.7 |
% |
|
|
10.6 |
% |
|
|
(1.0 |
%) |
|
|
1.3 |
% |
San Diego |
|
|
2,706 |
|
|
|
3.9 |
% |
|
|
2,853 |
|
|
|
95.9 |
% |
|
|
8.9 |
% |
|
|
8.2 |
% |
(1) |
|
7.1 |
% |
|
|
8.6 |
% |
|
|
9.8 |
% |
|
|
(1.3 |
%) |
|
|
0.3 |
% |
Subtotal – Southern California |
|
|
21,396 |
|
|
|
28.1 |
% |
|
|
2,754 |
|
|
|
96.0 |
% |
|
|
9.6 |
% |
|
|
3.4 |
% |
|
|
5.5 |
% |
|
|
2.7 |
% |
|
|
4.8 |
% |
|
|
(1.3 |
%) |
|
|
0.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
San Francisco |
|
|
11,368 |
|
|
|
16.8 |
% |
|
|
3,227 |
|
|
|
95.6 |
% |
|
|
9.4 |
% |
|
|
8.3 |
% |
(1) |
|
7.5 |
% |
|
|
8.6 |
% |
|
|
9.1 |
% |
|
|
(0.8 |
%) |
|
|
(1.3 |
%) |
Washington, D.C. |
|
|
14,400 |
|
|
|
16.1 |
% |
|
|
2,524 |
|
|
|
96.5 |
% |
|
|
9.3 |
% |
|
|
7.3 |
% |
|
|
5.5 |
% |
|
|
8.1 |
% |
|
|
7.8 |
% |
|
|
(0.5 |
%) |
|
|
0.3 |
% |
New York |
|
|
8,536 |
|
|
|
14.1 |
% |
|
|
4,378 |
|
|
|
96.7 |
% |
|
|
7.6 |
% |
|
|
21.9 |
% |
|
|
4.6 |
% |
|
|
38.9 |
% |
|
|
22.9 |
% |
|
|
(0.7 |
%) |
|
|
0.5 |
% |
Seattle |
|
|
9,524 |
|
|
|
11.4 |
% |
|
|
2,575 |
|
|
|
95.0 |
% |
|
|
9.9 |
% |
|
|
10.5 |
% |
|
|
1.0 |
% |
|
|
14.6 |
% |
|
|
10.5 |
% |
|
|
0.0 |
% |
|
|
(1.5 |
%) |
Boston |
|
|
6,700 |
|
|
|
10.2 |
% |
|
|
3,313 |
|
|
|
96.0 |
% |
|
|
8.0 |
% |
|
|
12.3 |
% |
|
|
5.2 |
% |
|
|
15.5 |
% |
|
|
12.2 |
% |
|
|
0.2 |
% |
|
|
(1.3 |
%) |
Denver |
|
|
1,904 |
|
|
|
2.0 |
% |
|
|
2,357 |
|
|
|
96.1 |
% |
|
|
11.8 |
% |
|
|
8.9 |
% |
|
|
17.8 |
% |
|
|
5.3 |
% |
|
|
9.1 |
% |
|
|
(0.3 |
%) |
|
|
(2.9 |
%) |
Other Expansion Markets |
|
|
1,645 |
|
|
|
1.3 |
% |
|
|
1,957 |
|
|
|
92.9 |
% |
|
|
13.0 |
% |
|
|
9.4 |
% |
|
|
5.7 |
% |
|
|
11.7 |
% |
|
|
12.9 |
% |
|
|
(2.9 |
%) |
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
|
|
75,473 |
|
|
|
100.0 |
% |
|
$ |
2,966 |
|
|
|
95.9 |
% |
|
|
9.3 |
% |
|
|
9.5 |
% |
(2) |
|
5.3 |
% |
|
|
11.5 |
% |
|
|
10.3 |
% |
|
|
(0.7 |
%) |
|
|
(0.3 |
%) |
(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 7.2%, 10.2%, 9.6% and 9.0% for Los Angeles, Orange County, San Diego and San Francisco, respectively. |
|
| (2) | With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 8.1% in the fourth quarter of 2022 compared to the fourth 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 96.3% of total revenues for the year ended December 31, 2022. |
||
| Equity Residential
Fourth Quarter 2022 vs. Third Quarter 2022 Same Store Residential Results/Statistics by Market |
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Quarter |
|
||||||||||||||||||||||||||
Markets/Metro Areas |
|
Apartment
|
|
|
Q4 2022
|
|
|
Q4 2022
|
|
|
Q4 2022
|
|
|
Q4 2022
|
|
|
Revenues |
|
|
Expenses |
|
|
NOI |
|
|
Average
|
|
|
Physical
|
|
|
Turnover |
|
|||||||||||
Los Angeles |
|
|
14,662 |
|
|
|
18.1 |
% |
|
$ |
2,755 |
|
|
|
95.8 |
% |
|
|
10.0 |
% |
|
|
(1.5 |
%) |
(1) |
|
(2.4 |
%) |
|
|
(1.2 |
%) |
|
|
(0.4 |
%) |
|
|
(1.1 |
%) |
|
|
(0.7 |
%) |
Orange County |
|
|
4,028 |
|
|
|
5.4 |
% |
|
|
2,685 |
|
|
|
96.7 |
% |
|
|
8.7 |
% |
|
|
0.4 |
% |
(1) |
|
(3.2 |
%) |
|
|
1.5 |
% |
|
|
0.8 |
% |
|
|
(0.4 |
%) |
|
|
(2.0 |
%) |
San Diego |
|
|
2,878 |
|
|
|
4.1 |
% |
|
|
2,894 |
|
|
|
96.0 |
% |
|
|
8.8 |
% |
|
|
0.7 |
% |
(1) |
|
(1.9 |
%) |
|
|
1.5 |
% |
|
|
1.4 |
% |
|
|
(0.7 |
%) |
|
|
(2.4 |
%) |
Subtotal – Southern California |
|
|
21,568 |
|
|
|
27.6 |
% |
|
|
2,761 |
|
|
|
96.0 |
% |
|
|
9.6 |
% |
|
|
(0.9 |
%) |
|
|
(2.4 |
%) |
|
|
(0.3 |
%) |
|
|
0.1 |
% |
|
|
(0.9 |
%) |
|
|
(1.2 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
San Francisco |
|
|
11,368 |
|
|
|
16.3 |
% |
|
|
3,227 |
|
|
|
95.6 |
% |
|
|
9.4 |
% |
|
|
0.2 |
% |
(1) |
|
(2.0 |
%) |
|
|
1.2 |
% |
|
|
0.5 |
% |
|
|
(0.3 |
%) |
|
|
(3.9 |
%) |
Washington, D.C. |
|
|
14,716 |
|
|
|
16.2 |
% |
|
|
2,531 |
|
|
|
96.5 |
% |
|
|
9.3 |
% |
|
|
0.9 |
% |
|
|
(5.6 |
%) |
|
|
4.4 |
% |
|
|
1.3 |
% |
|
|
(0.4 |
%) |
|
|
(4.9 |
%) |
New York |
|
|
8,536 |
|
|
|
13.7 |
% |
|
|
4,378 |
|
|
|
96.7 |
% |
|
|
7.6 |
% |
|
|
3.2 |
% |
|
|
3.7 |
% |
|
|
2.9 |
% |
|
|
3.5 |
% |
|
|
(0.2 |
%) |
|
|
(7.2 |
%) |
Seattle |
|
|
9,524 |
|
|
|
11.1 |
% |
|
|
2,575 |
|
|
|
95.0 |
% |
|
|
9.9 |
% |
|
|
0.1 |
% |
|
|
(3.0 |
%) |
|
|
1.4 |
% |
|
|
0.7 |
% |
|
|
(0.5 |
%) |
|
|
(6.0 |
%) |
Boston |
|
|
6,700 |
|
|
|
10.0 |
% |
|
|
3,313 |
|
|
|
96.0 |
% |
|
|
8.0 |
% |
|
|
1.5 |
% |
|
|
(2.2 |
%) |
|
|
3.1 |
% |
|
|
1.5 |
% |
|
|
0.1 |
% |
|
|
(9.7 |
%) |
Denver |
|
|
2,498 |
|
|
|
2.6 |
% |
|
|
2,372 |
|
|
|
96.1 |
% |
|
|
12.0 |
% |
|
|
1.0 |
% |
|
|
3.0 |
% |
|
|
0.2 |
% |
|
|
1.4 |
% |
|
|
(0.3 |
%) |
|
|
(8.1 |
%) |
Other Expansion Markets |
|
|
3,197 |
|
|
|
2.5 |
% |
|
|
1,976 |
|
|
|
92.8 |
% |
|
|
13.0 |
% |
|
|
3.5 |
% |
|
|
(32.7 |
%) |
|
|
44.3 |
% |
|
|
6.5 |
% |
|
|
(2.8 |
%) |
|
|
(3.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
|
|
78,107 |
|
|
|
100.0 |
% |
|
$ |
2,944 |
|
|
|
95.9 |
% |
|
|
9.4 |
% |
|
|
0.8 |
% |
(2) |
|
(2.8 |
%) |
|
|
2.5 |
% |
|
|
1.3 |
% |
|
|
(0.5 |
%) |
|
|
(4.6 |
%) |
(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 0.8%, 1.7%, 1.7% and 1.3% for Los Angeles, Orange County, San Diego and San Francisco, respectively. |
|
(2) |
With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 0.4% in the fourth quarter of 2022 compared to the third 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 96.3% of total revenues for the year ended December 31, 2022. |
||
| Equity Residential
2022 vs. 2021 Same Store Residential Results/Statistics by Market |
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Year |
|
||||||||||||||||||||||||||
Markets/Metro Areas |
|
Apartment
|
|
|
2022
|
|
|
2022
|
|
|
2022
|
|
|
2022
|
|
|
Revenues |
|
|
Expenses |
|
|
NOI |
|
|
Average
|
|
|
Physical
|
|
|
Turnover |
|
|||||||||||
Los Angeles |
|
|
14,662 |
|
|
|
19.8 |
% |
|
$ |
2,733 |
|
|
|
96.6 |
% |
|
|
38.4 |
% |
|
|
8.7 |
% |
(1) |
|
3.5 |
% |
|
|
11.0 |
% |
|
|
9.0 |
% |
|
|
(0.2 |
%) |
|
|
(3.1 |
%) |
Orange County |
|
|
4,028 |
|
|
|
5.8 |
% |
|
|
2,614 |
|
|
|
97.0 |
% |
|
|
34.5 |
% |
|
|
12.1 |
% |
(1) |
|
5.4 |
% |
|
|
14.0 |
% |
|
|
12.8 |
% |
|
|
(0.7 |
%) |
|
|
(0.1 |
%) |
San Diego |
|
|
2,706 |
|
|
|
4.0 |
% |
|
|
2,766 |
|
|
|
96.7 |
% |
|
|
38.1 |
% |
|
|
10.2 |
% |
(1) |
|
5.4 |
% |
|
|
11.6 |
% |
|
|
11.4 |
% |
|
|
(0.9 |
%) |
|
|
(5.0 |
%) |
Subtotal – Southern California |
|
|
21,396 |
|
|
|
29.6 |
% |
|
|
2,715 |
|
|
|
96.7 |
% |
|
|
37.6 |
% |
|
|
9.5 |
% |
|
|
4.0 |
% |
|
|
11.7 |
% |
|
|
10.0 |
% |
|
|
(0.4 |
%) |
|
|
(2.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
San Francisco |
|
|
11,368 |
|
|
|
17.4 |
% |
|
|
3,152 |
|
|
|
96.1 |
% |
|
|
41.5 |
% |
|
|
9.4 |
% |
(1) |
|
5.2 |
% |
|
|
11.3 |
% |
|
|
8.3 |
% |
|
|
0.9 |
% |
|
|
(6.5 |
%) |
Washington, D.C. |
|
|
14,187 |
|
|
|
16.2 |
% |
|
|
2,456 |
|
|
|
96.8 |
% |
|
|
43.1 |
% |
|
|
5.8 |
% |
|
|
5.5 |
% |
|
|
5.9 |
% |
|
|
5.5 |
% |
|
|
0.3 |
% |
|
|
(2.2 |
%) |
New York |
|
|
8,536 |
|
|
|
13.5 |
% |
|
|
4,068 |
|
|
|
96.9 |
% |
|
|
42.4 |
% |
|
|
19.9 |
% |
|
|
2.3 |
% |
|
|
39.0 |
% |
|
|
17.6 |
% |
|
|
1.8 |
% |
|
|
4.2 |
% |
Seattle |
|
|
9,331 |
|
|
|
11.4 |
% |
|
|
2,497 |
|
|
|
95.1 |
% |
|
|
51.6 |
% |
|
|
10.1 |
% |
|
|
(2.3 |
%) |
|
|
16.0 |
% |
|
|
10.7 |
% |
|
|
(0.5 |
%) |
|
|
0.7 |
% |
Boston |
|
|
6,430 |
|
|
|
10.0 |
% |
|
|
3,208 |
|
|
|
96.2 |
% |
|
|
45.3 |
% |
|
|
11.7 |
% |
|
|
5.1 |
% |
|
|
14.9 |
% |
|
|
11.2 |
% |
|
|
0.5 |
% |
|
|
(1.8 |
%) |
Denver |
|
|
1,624 |
|
|
|
1.9 |
% |
|
|
2,299 |
|
|
|
96.7 |
% |
|
|
60.3 |
% |
|
|
11.4 |
% |
|
|
10.7 |
% |
|
|
11.7 |
% |
|
|
11.3 |
% |
|
|
0.1 |
% |
|
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
|
|
72,872 |
|
|
|
100.0 |
% |
|
$ |
2,898 |
|
|
|
96.4 |
% |
|
|
42.8 |
% |
|
|
10.7 |
% |
(2) |
|
3.6 |
% |
|
|
14.4 |
% |
|
|
10.4 |
% |
|
|
0.3 |
% |
|
|
(1.9 |
%) |
(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 8.0%, 11.4% and 8.7% for Los Angeles, Orange County and San Francisco, respectively. In San Diego, same store revenue growth would have been 11.1% 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 10.1% in the year ended December 31, 2022 compared to the year ended December 31, 2021. See page 12 for additional detail and reconciliations. |
|
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.3% of total revenues for the year ended December 31, 2022. |
||
Equity Residential |
||||||||||||||||||||||||
Same Store Residential Net Effective Lease Pricing Statistics For 72,872 Same Store Apartment Units |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
New Lease Change (1) |
|
|
Renewal Rate Achieved (1) |
|
|
Blended Rate (1) |
|
|||||||||||||||
Markets/Metro Areas |
|
Q4 2022 |
|
|
Q3 2022 |
|
|
Q4 2022 |
|
|
Q3 2022 |
|
|
Q4 2022 |
|
|
Q3 2022 |
|
||||||
Southern California |
|
|
6.9 |
% |
|
|
14.0 |
% |
|
|
7.6 |
% |
|
|
7.6 |
% |
|
|
7.3 |
% |
|
|
10.3 |
% |
San Francisco |
|
|
(0.7 |
%) |
|
|
9.1 |
% |
|
|
7.1 |
% |
|
|
8.4 |
% |
|
|
3.0 |
% |
|
|
8.8 |
% |
Washington, D.C. |
|
|
3.0 |
% |
|
|
9.4 |
% |
|
|
8.9 |
% |
|
|
7.5 |
% |
|
|
6.3 |
% |
|
|
8.3 |
% |
New York |
|
|
6.0 |
% |
|
|
22.2 |
% |
|
|
11.3 |
% |
|
|
14.8 |
% |
|
|
9.1 |
% |
|
|
18.0 |
% |
Seattle |
|
|
(6.1 |
%) |
|
|
10.3 |
% |
|
|
7.0 |
% |
|
|
11.1 |
% |
|
|
0.0 |
% |
|
|
10.7 |
% |
Boston |
|
|
2.0 |
% |
|
|
11.1 |
% |
|
|
9.0 |
% |
|
|
11.4 |
% |
|
|
6.4 |
% |
|
|
11.3 |
% |
Denver |
|
|
(1.9 |
%) |
|
|
8.7 |
% |
|
|
6.9 |
% |
|
|
8.8 |
% |
|
|
1.9 |
% |
|
|
8.7 |
% |
Total |
|
|
2.5 |
% |
|
|
13.0 |
% |
|
|
8.5 |
% |
|
|
10.0 |
% |
|
|
5.8 |
% |
|
|
11.3 |
% |
(1) |
Prior to the pandemic, New Lease Change was typically negative during the fourth quarter. The moderation in the fourth quarter of 2022 from the third quarter of 2022 was slightly more pronounced than expected but strong relative to historical periods. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions. See page 4 for January 2023 preliminary data. |
Equity Residential |
||||||||||||||||||||
Fourth Quarter 2022 vs. Fourth Quarter 2021 Total Same Store Operating Expenses Including 75,473 Same Store Apartment Units ($ in thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4 2022 |
|
|
Q4 2021 |
|
|
$
|
|
|
%
|
|
|
% of
|
|
|||||
Real estate taxes |
|
$ |
86,954 |
|
|
$ |
85,269 |
|
|
$ |
1,685 |
|
|
|
2.0 |
% |
|
|
42.1 |
% |
On-site payroll |
|
|
39,736 |
|
|
|
38,190 |
|
|
|
1,546 |
|
|
|
4.0 |
% |
|
|
19.2 |
% |
Utilities |
|
|
33,671 |
|
|
|
30,694 |
|
|
|
2,977 |
|
|
|
9.7 |
% |
|
|
16.3 |
% |
Repairs and maintenance |
|
|
25,787 |
|
|
|
22,279 |
|
|
|
3,508 |
|
|
|
15.7 |
% |
|
|
12.5 |
% |
Insurance |
|
|
7,299 |
|
|
|
6,679 |
|
|
|
620 |
|
|
|
9.3 |
% |
|
|
3.5 |
% |
Leasing and advertising |
|
|
2,495 |
|
|
|
2,792 |
|
|
|
(297 |
) |
|
|
(10.6 |
%) |
|
|
1.2 |
% |
Other on-site operating expenses |
|
|
10,759 |
|
|
|
10,372 |
|
|
|
387 |
|
|
|
3.7 |
% |
|
|
5.2 |
% |
Total Same Store Operating Expenses (2) |
||||||||||||||||||||
(includes Residential and Non-Residential) |
|
$ |
206,701 |
|
|
$ |
196,275 |
|
|
$ |
10,426 |
|
|
|
5.3 |
% |
|
|
100.0 |
% |
2022 vs. 2021 Total Same Store Operating Expenses Including 72,872 Same Store Apartment Units ($ in thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2022 |
|
|
2021 |
|
|
$
|
|
|
%
|
|
|
% of
|
|
|||||
Real estate taxes |
|
$ |
336,372 |
|
|
$ |
333,151 |
|
|
$ |
3,221 |
|
|
|
1.0 |
% |
|
|
41.9 |
% |
On-site payroll |
|
|
152,732 |
|
|
|
155,806 |
|
|
|
(3,074 |
) |
|
|
(2.0 |
%) |
|
|
19.0 |
% |
Utilities |
|
|
129,734 |
|
|
|
115,813 |
|
|
|
13,921 |
|
|
|
12.0 |
% |
|
|
16.2 |
% |
Repairs and maintenance |
|
|
102,004 |
|
|
|
92,172 |
|
|
|
9,832 |
|
|
|
10.7 |
% |
|
|
12.7 |
% |
Insurance |
|
|
28,651 |
|
|
|
26,141 |
|
|
|
2,510 |
|
|
|
9.6 |
% |
|
|
3.6 |
% |
Leasing and advertising |
|
|
9,473 |
|
|
|
10,381 |
|
|
|
(908 |
) |
|
|
(8.7 |
%) |
|
|
1.2 |
% |
Other on-site operating expenses |
|
|
43,325 |
|
|
|
41,040 |
|
|
|
2,285 |
|
|
|
5.6 |
% |
|
|
5.4 |
% |
Total Same Store Operating Expenses (2) |
||||||||||||||||||||
(includes Residential and Non-Residential) |
|
$ |
802,291 |
|
|
$ |
774,504 |
|
|
$ |
27,787 |
|
|
|
3.6 |
% |
|
|
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 – Year-over-year decrease due to improved sales and service staff utilization from various technology initiatives, higher than usual staffing vacancies during the current period and lower employee benefit-related costs. Quarter-over-quarter increase due primarily to timing of employee benefit-related costs and fewer staffing vacancies along with a challenging comparable period in the fourth quarter of 2021. |
||
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, increases in minimum wage on contracted services along with a challenging comparable period in the fourth quarter of 2021. |
||
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 decrease due primarily to reduction in use of outside residential brokers and reduction in advertising expense. |
||
Other on-site operating expenses – Increase driven primarily by higher property-related legal expenses and higher ground lease-related expenses. |
||
| (2) | See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. |
Equity Residential |
||||||||||||||||
Debt Summary as of December 31, 2022 ($ in thousands) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Debt
|
|
|
% of Total |
|
|
Weighted
|
|
|
Weighted
|
|
||||
Secured |
|
$ |
1,953,438 |
|
|
|
26.3 |
% |
|
|
3.46 |
% |
|
|
4.7 |
|
Unsecured |
|
|
5,472,284 |
|
|
|
73.7 |
% |
|
|
3.55 |
% |
|
|
9.6 |
|
Total |
|
$ |
7,425,722 |
|
|
|
100.0 |
% |
|
|
3.53 |
% |
|
|
8.3 |
|
Fixed Rate Debt: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Secured – Conventional |
|
$ |
1,608,838 |
|
|
|
21.7 |
% |
|
|
3.66 |
% |
|
|
3.9 |
|
Unsecured – Public |
|
|
5,342,329 |
|
|
|
71.9 |
% |
|
|
3.61 |
% |
|
|
9.8 |
|
Fixed Rate Debt |
|
|
6,951,167 |
|
|
|
93.6 |
% |
|
|
3.62 |
% |
|
|
8.5 |
|
Floating Rate Debt: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Secured – Conventional |
|
|
108,378 |
|
|
|
1.4 |
% |
|
|
4.11 |
% |
|
|
1.3 |
|
Secured – Tax Exempt |
|
|
236,222 |
|
|
|
3.2 |
% |
|
|
1.74 |
% |
|
|
11.5 |
|
Unsecured – Revolving Credit Facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4.8 |
|
Unsecured – Commercial Paper Program (2) |
|
|
129,955 |
|
|
|
1.8 |
% |
|
|
1.52 |
% |
|
|
— |
|
Floating Rate Debt |
|
|
474,555 |
|
|
|
6.4 |
% |
|
|
2.08 |
% |
|
|
6.2 |
|
Total |
|
$ |
7,425,722 |
|
|
|
100.0 |
% |
|
|
3.53 |
% |
|
|
8.3 |
|
(1) |
|
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. |
(2) |
|
At December 31, 2022, the Weighted Average Coupon and weighted average maturity of commercial paper outstanding was 4.60% and 4 days, respectively. The weighted average amount outstanding for the year ended December 31, 2022 was approximately $156.1 million. |
Note: The Company capitalized interest of approximately $7.1 million and $15.9 million during the years ended December 31, 2022 and 2021, respectively. The Company capitalized interest of approximately $2.9 million and $3.5 million during the quarters ended December 31, 2022 and 2021, respectively. |
||
Equity Residential |
||||||||||||||||||||||||
Debt Maturity Schedule as of December 31, 2022 ($ in thousands) |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Year |
|
Fixed
|
|
|
Floating
|
|
|
Total |
|
|
% of Total |
|
|
Weighted
|
|
|
Weighted
|
|
||||||
2023 (3) |
|
$ |
800,000 |
|
|
$ |
198,275 |
|
(2) |
$ |
998,275 |
|
|
|
13.3 |
% |
|
|
4.21 |
% |
|
|
4.37 |
% |
2024 |
|
|
— |
|
|
|
6,100 |
|
|
|
6,100 |
|
|
|
0.1 |
% |
|
N/A |
|
|
|
3.68 |
% |
|
2025 |
|
|
450,000 |
|
|
|
53,180 |
|
|
|
503,180 |
|
|
|
6.7 |
% |
|
|
3.38 |
% |
|
|
3.69 |
% |
2026 |
|
|
592,025 |
|
|
|
9,000 |
|
|
|
601,025 |
|
|
|
8.0 |
% |
|
|
3.58 |
% |
|
|
3.58 |
% |
2027 |
|
|
400,000 |
|
|
|
9,800 |
|
|
|
409,800 |
|
|
|
5.5 |
% |
|
|
3.25 |
% |
|
|
3.26 |
% |
2028 |
|
|
900,000 |
|
|
|
10,700 |
|
|
|
910,700 |
|
|
|
12.1 |
% |
|
|
3.79 |
% |
|
|
3.79 |
% |
2029 |
|
|
888,120 |
|
|
|
11,500 |
|
|
|
899,620 |
|
|
|
12.0 |
% |
|
|
3.30 |
% |
|
|
3.31 |
% |
2030 |
|
|
1,095,000 |
|
|
|
12,600 |
|
|
|
1,107,600 |
|
|
|
14.8 |
% |
|
|
2.55 |
% |
|
|
2.56 |
% |
2031 |
|
|
528,500 |
|
|
|
39,700 |
|
|
|
568,200 |
|
|
|
7.6 |
% |
|
|
1.94 |
% |
|
|
2.06 |
% |
2032 |
|
|
— |
|
|
|
28,000 |
|
|
|
28,000 |
|
|
|
0.4 |
% |
|
N/A |
|
|
|
3.62 |
% |
|
2033+ |
|
|
1,350,850 |
|
|
|
110,900 |
|
|
|
1,461,750 |
|
|
|
19.5 |
% |
|
|
4.39 |
% |
|
|
4.31 |
% |
Subtotal |
|
|
7,004,495 |
|
|
|
489,755 |
|
|
|
7,494,250 |
|
|
|
100.0 |
% |
|
|
3.48 |
% |
|
|
3.54 |
% |
Deferred Financing Costs and Unamortized (Discount) |
|
|
(53,328 |
) |
|
|
(15,200 |
) |
|
|
(68,528 |
) |
|
N/A |
|
|
N/A |
|
|
N/A |
|
|||
Total |
|
$ |
6,951,167 |
|
|
$ |
474,555 |
|
|
$ |
7,425,722 |
|
|
|
100.0 |
% |
|
|
3.48 |
% |
|
|
3.54 |
% |
(1) |
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. |
|
(2) |
Includes $130.0 million in principal outstanding on the Company’s commercial paper program. |
|
| (3) | During 2022, the Company entered into $450.0 million of ten-year forward starting SOFR swaps at a weighted average rate of 2.90% (currently equivalent to a ten-year U.S. Treasury of approximately 3.23%) to hedge the U.S. Treasury risk for the refinancing of 2023 maturities. |
Equity Residential |
||||
Selected Unsecured Public Debt Covenants |
||||
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
|
2022 |
|
2022 |
Debt to Adjusted Total Assets (not to exceed 60%) |
|
27.1% |
|
27.5% |
|
|
|
|
|
Secured Debt to Adjusted Total Assets (not to exceed 40%) |
|
7.9% |
|
8.0% |
|
|
|
|
|
Consolidated Income Available for Debt Service to |
|
|
|
|
Maximum Annual Service Charges |
|
|
|
|
(must be at least 1.5 to 1) |
|
6.24 |
|
6.15 |
|
|
|
|
|
Total Unencumbered Assets to Unsecured Debt |
|
|
|
|
(must be at least 125%) |
|
512.5% |
|
500.0% |
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 |
||||
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
|
2022 |
|
2022 |
Total debt to Normalized EBITDAre |
|
4.42x |
|
4.58x |
|
|
|
|
|
Net debt to Normalized EBITDAre |
|
4.38x |
|
4.54x |
|
|
|
|
|
Unencumbered NOI as a % of total NOI |
|
88.2% |
|
|