Douglas Crocker II Resigns from Board of Trustees
CHICAGO, April 30 /PRNewswire-FirstCall/ -- Equity Residential (NYSE: EQR)
today reported results for the quarter ended March 31, 2003. All per share
results are reported on a fully diluted basis. The Company also announced
that Douglas Crocker II, its former CEO, has resigned from its Board of
Trustees and will not stand for re-election at the annual meeting of
shareholders on May 30, 2003.
(Photo: http://www.newscom.com/cgi-bin/prnh/20010801/ERPTCLOGO )
"After retiring as CEO, I have been presented with many business
opportunities, some of which I would like to consider. Therefore, to avoid any
real or perceived conflicts, I am resigning from the Board of Trustees.
Although I am officially ending my business ties, I will never end my personal
and emotional ties to Equity Residential," said Mr. Crocker.
"We are very appreciative of Doug's leadership over the last ten years and
we wish him well in his current and future endeavors," said Samuel Zell,
Chairman of Equity Residential.
First Quarter 2003
"The weak economy continues to take its toll on the multifamily industry,"
said Bruce W. Duncan, Equity Residential's President and CEO. "While we are
encouraged that revenues in each of the first three months of 2003 are running
at a higher rate than December 2002 revenues, it is still too early to make
predictions regarding the timing of a recovery."
For the quarter ended March 31, 2003, the Company reported earnings of
$0.41 per share compared to $0.28 per share in the first quarter of 2002. The
quarterly increase is primarily attributable to higher gains on property
sales.
Funds From Operations (FFO) for the quarter were $168.6 million, or $0.57
per share, compared to $192.1 million, or $0.64 per share, in the first
quarter of 2002.
Total revenues for the quarter were $486.1 million compared to $491.0
million in the same period of 2002.
"Same-Store" Results
On a "same-store" first quarter 2003 to first quarter 2002 comparison,
which includes 191,278 units, revenues decreased 3.5 percent, expenses
increased 7.7 percent and net operating income (NOI) decreased 9.6 percent. On
a sequential "same-store" comparison, for these same 191,278 units, from
fourth quarter 2002 to first quarter 2003, revenues decreased 0.3 percent,
expenses increased 2.0 percent and NOI decreased 1.8 percent.
Acquisitions/Dispositions
During the first quarter of 2003, the Company acquired three properties
consisting of 920 units for an aggregate purchase price of $111.5 million at
an average capitalization (cap) rate of 7.0 percent. Also during the quarter,
Equity Residential sold 17 properties, consisting of 4,000 units, for an
aggregate sale price of $195.0 million at an average cap rate of 7.6 percent.
Second Quarter 2003 Earnings
Equity Residential expects to announce second quarter 2003 results on
Wednesday, August 13, 2003 and host a conference call to discuss those results
that day at 10:00 am CT.
Equity Residential is the largest publicly traded apartment company in
America. Nationwide, Equity Residential owns or has investments in 1,027
properties in 36 states consisting of 221,249 units. For more information on
Equity Residential, please visit our website at www.equityapartments.com .
Forward-Looking Statements
The Company lists parameters for 2003 results in the final page of this
release. 2003 results will depend upon a slowdown in multifamily starts and
economic recovery and job growth. The forward-looking statements contained in
this news release regarding 2003 results are further subject to certain risks
and uncertainties including, without limitation, the risks described under the
heading "Risk Factors" in our Annual Report on Form 10-K filed with the
Securities and Exchange Commission (SEC) and available on our website,
www.equityapartments.com . This news release also contains forward-looking
statements concerning development properties. The total number of units and
cost of development and completion dates reflect the Company's best estimates
and are subject to uncertainties arising from changing economic conditions
(such as costs of labor and construction materials), completion and local
government regulation. The Company 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
and outlook for 2003 will take place today at 10:00 a.m. Central. Please visit
the Investor Information section of the Company's web site at
www.equityapartments.com for the link. A replay of the web cast will be
available for two weeks at this site.
EQUITY RESIDENTIAL
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands except per share data)
(Unaudited)
Quarter Ended March 31,
2003 2002
REVENUES
Rental income $480,219$485,144
Fee and asset management 2,488 1,718
Interest and other income 3,343 4,100
Total revenues 486,050 490,962
EXPENSES
Property and maintenance 132,281 122,578
Real estate taxes and insurance 52,433 49,771
Property management 15,901 19,490
Fee and asset management 1,770 1,862
Depreciation 117,816 110,992
Interest:
Expense incurred, net 80,809 84,331
Amortization of deferred financing costs 1,408 1,385
General and administrative 11,176 10,800
Impairment on technology investments 291 291
Total expenses 413,885 401,500
Income before allocation to Minority Interests,
income from investments in unconsolidated
entities, net gain on sales of unconsolidated
entities and discontinued operations 72,165 89,462
Allocation to Minority Interests:
Operating Partnership (9,110) (6,441)
Partially Owned Properties (115) (806)
Income from investments in unconsolidated
entities 107 226
Net gain on sales of unconsolidated entities 1,212 5,657
Income before discontinued operations 64,259 88,098
Net gain on sales of discontinued operations 70,672 2,816
Discontinued operations, net 416 9,964
Net income 135,347 100,878
Preferred distributions (24,180) (24,525)
Net income available to Common Shares $111,167$76,353
Net income per share - basic $0.41$0.28
Net income per share - diluted $0.41$0.28
Weighted average Common Shares outstanding
- basic 270,678 271,094
Weighted average Common Shares outstanding
- diluted 297,646 297,229
Distributions declared per Common Share
outstanding $0.4325 $0.4325
EQUITY RESIDENTIAL
CONSOLIDATED STATEMENTS OF FUNDS FROM OPERATIONS
(Amounts in thousands except per share data)
(Unaudited)
Quarter Ended March 31,
2003 2002
Net income available to Common Shares $111,167$76,353
Net income allocation to Minority
Interests-Operating Partnership 9,110 6,441
Adjustments:
Depreciation 117,816 110,992
Depreciation - Non-real estate additions (2,275) (1,977)
Depreciation - Partially Owned Properties (2,039) (1,871)
Depreciation - Unconsolidated Properties 5,195 4,490
Net gain on sales of unconsolidated
entities (1,212) (5,657)
Discontinued Operations:
Depreciation 1,102 5,776
Net gain on sales of depreciable
property (70,229) (2,477)
FFO available to Common Shares and OP Units
- basic (A)(B) $168,635$192,070
FFO available to Common Shares and OP Units
- diluted $175,584$199,556
FFO per share and OP Unit - basic $0.58$0.65
FFO per share and OP Unit - diluted $0.57$0.64
Weighted average Common Shares and OP Units
outstanding - basic 292,949 294,105
Weighted average Common Shares and OP Units
outstanding - diluted 308,449 312,365
(A) The National Association of Real Estate Investment Trusts ("NAREIT")
defines funds from operations ("FFO") (April 2002 White Paper) as net
income (computed in accordance with accounting principles generally
accepted in the United States), excluding gains (or losses) from sales
of property, plus depreciation and amortization, and after adjustments
for unconsolidated partnerships and joint ventures. Adjustments for
unconsolidated partnerships and joint ventures will be calculated to
reflect funds from operations on the same basis. The April 2002 White
Paper states that gain or loss on sales of property is excluded from
FFO for previously depreciated operating properties only. Once the
Company commences the conversion of units to condominiums, it
simultaneously discontinues depreciation of such property.
Accordingly, the Company included in FFO its incremental gains or
losses from the sale of condominium units to third parties, which
represented net gains of $443 and $339 for the quarters ended
March 31, 2003 and 2002, respectively.
(B) The Company believes that FFO is helpful to investors as a
supplemental measure of the operating performance of a real estate
company because, along with cash flows from operating activities,
financing activities and investing activities, it provides investors
an understanding of the ability of the Company to incur and service
debt and to make capital expenditures. FFO in and of itself does not
represent cash generated from operating activities in accordance with
GAAP and therefore should not be considered an alternative to net
income as an indication of the Company's performance or to net cash
flows from operating activities as determined by GAAP as a measure of
liquidity and is not necessarily indicative of cash available to fund
cash needs. The Company's calculation of FFO may differ from other
real estate companies due to variations among the Company's and other
real estate companies' accounting policies for replacement type items
and, accordingly, may not be comparable to such other real estate
companies.
EQUITY RESIDENTIAL
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands except for share amounts)
(Unaudited)
March 31, December 31,
2003 2002
ASSETS
Investment in real estate
Land $1,807,226$1,803,577
Depreciable property 11,227,980 11,240,245
Construction in progress 2,428 2,441
13,037,634 13,046,263
Accumulated depreciation (2,194,190) (2,112,017)
Investment in real estate, net of
accumulated depreciation 10,843,444 10,934,246
Cash and cash equivalents 310,309 29,875
Investments in unconsolidated entities 515,741 509,789
Rents receivable 1,410 2,926
Deposits - restricted 173,121 141,278
Escrow deposits - mortgage 44,688 50,565
Deferred financing costs, net 33,780 32,144
Goodwill, net 30,000 30,000
Other assets 78,277 80,094
Total assets $12,030,770$11,810,917
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage notes payable $2,901,117$2,927,614
Notes, net 2,854,319 2,456,085
Line of credit - 140,000
Accounts payable and accrued expenses 66,234 64,369
Accrued interest payable 64,987 63,151
Rents received in advance and other
liabilities 167,641 165,095
Security deposits 45,192 45,333
Distributions payable 141,413 140,844
Total liabilities 6,240,903 6,002,491
Commitments and contingencies
Minority Interests:
Operating Partnership 345,983 349,646
Preference Interests 246,000 246,000
Junior Preference Units 5,846 5,846
Partially Owned Properties 9,395 9,811
Total Minority Interests 607,224 611,303
Shareholders' equity:
Preferred Shares of beneficial interest,
$0.01 par value; 100,000,000 shares
authorized; 10,520,784 shares issued and
outstanding as of March 31, 2003 and
10,524,034 shares issued and outstanding
as of December 31, 2002 946,076 946,157
Common Shares of beneficial interest,
$0.01 par value; 1,000,000,000 shares
authorized; 272,488,106 shares issued and
outstanding as of March 31, 2003 and
271,095,481 shares issued and outstanding
as of December 31, 2002 2,725 2,711
Paid in capital 4,827,623 4,839,218
Deferred compensation (9,832) (12,118)
Distributions in excess of accumulated
earnings (541,721) (535,056)
Accumulated other comprehensive loss (42,228) (43,789)
Total shareholders' equity 5,182,643 5,197,123
Total liabilities and shareholders'
equity $12,030,770$11,810,917
First Quarter 2003 vs. First Quarter 2002
Quarter over Quarter Same-Store Results
$ in Millions - 191,278 Same-Store Units
Description Revenues Expenses NOI**
Q1 2003 $448.1 $176.8 $271.3
Q1 2002 $464.3 $164.2 $300.1
Change $(16.2) $12.6 $(28.8)
Change (3.5%) 7.7% (9.6%)
First Quarter 2003 vs. Fourth Quarter 2002
Sequential Quarter over Quarter Same-Store Results
$ in Millions - 191,278 Same-Store Units*
Description Revenues Expenses NOI**
Q1 2003 $448.1 $176.8 $271.3
Q4 2002 $449.6 $173.3 $276.3
Change $(1.5) $3.5 $(5.0)
Change (0.3%) 2.0% (1.8%)
*Includes the same units as the First Quarter 2003 vs. First Quarter 2002
Same Store results for comparability purposes.
Same-Store Occupancy Statistics
Q1 2003 92.5% Q1 2003 92.5%
Q1 2002 94.0% Q4 2002 92.5%
Change (1.5%) Change 0.0%
** The Company's primary financial measure for evaluating each of its
apartment communities is net operating income ("NOI").NOI represents
rental income less property and maintenance expense, real estate tax
and insurance expense, and property management expense.
First Quarter 2003 vs. First Quarter 2002
Same-Store Results by Market
Increase (Decrease) from Prior Year
2003
2003 Weighted
% of Average
Actual Occupancy
Markets Units NOI % Revenues Expenses NOI Occupancy
1 Boston 5,352 6.3% 93.8% (0.5%) 18.0% (8.4%) (2.3%)
2 Atlanta 12,535 5.5% 91.6% (7.6%) 4.5% (14.5%) (2.1%)
3 Phoenix 11,584 5.1% 88.7% (6.2%) 6.9% (13.4%) (2.9%)
4 South
Florida 8,869 5.0% 94.2% (1.4%) 8.5% (7.3%) (0.9%)
5 San Francisco
Bay Area 5,010 4.9% 94.5% (9.1%) 4.7% (14.4%) (0.9%)
6 Dallas/
Ft Worth 9,693 4.1% 92.8% (7.4%) 2.3% (14.5%) (2.4%)
7 Los Angeles 4,073 4.1% 95.2% 2.6% 9.3% 0.1% (1.0%)
8 Denver 7,523 4.0% 92.3% (10.7%) 8.4% (18.0%) (1.4%)
9 DC Suburban
Maryland 5,525 3.5% 94.9% 3.4% 14.8% (1.7%) (1.0%)
10 New England
(excl
Boston) 6,112 3.5% 95.6% 3.9% 13.4% (2.2%) (0.7%)
11 San Diego 3,708 3.4% 93.4% 0.9% 6.4% (1.4%) (1.8%)
12 Seattle 5,980 3.1% 92.9% (6.0%) 5.4% (12.2%) 0.0%
13 Orlando 7,351 3.1% 92.7% (2.3%) 10.1% (9.7%) (0.5%)
14 North
Florida 7,181 3.0% 93.6% 2.0% 7.7% (1.3%) 0.7%
15 Orange Co 3,013 2.8% 94.7% 1.3% 7.5% (1.0%) 0.0%
16 New York
Metro Area 2,306 2.7% 92.8% (7.5%) 7.4% (14.1%) (1.0%)
17 Inland
Empire, CA 3,404 2.5% 94.6% 2.0% 9.3% (1.2%) (1.2%)
18 Minn/St Paul 4,042 2.3% 90.8% (6.7%) 5.0% (13.9%) (3.4%)
19 Tampa/
Ft Myers 5,417 2.0% 92.4% (1.4%) 9.4% (9.0%) (1.1%)
20 Portland 4,304 1.9% 91.1% (3.7%) 5.1% (9.5%) (1.2%)
Top 20
Markets 122,982 72.8% 92.8% (3.3%) 8.1% (9.2%) (1.4%)
All Other
Markets 68,296 27.2% 91.9% (4.0%) 6.8% (10.7%) (1.7%)
Total 191,278 100.0% 92.5% (3.5%) 7.7% (9.6%) (1.5%)
First Quarter 2003 vs. Fourth Quarter 2002*
Sequential Same-Store Results by Market
Increase (Decrease) from Prior Quarter
1Q03
1Q03 Weighted
% of Average
Actual Occupancy
Markets Units NOI % Revenues Expenses NOI Occupancy
1 Boston 5,352 6.3% 93.8% (0.3%) 15.5% (7.2%) (0.6%)
2 Atlanta 12,535 5.5% 91.6% (1.7%) 1.2% (3.7%) (0.6%)
3 Phoenix 11,584 5.1% 88.7% 0.7% (0.2%) 1.3% 0.9%
4 South
Florida 8,869 5.0% 94.2% 1.7% 2.2% 1.3% 1.2%
5 San Francisco
Bay Area 5,010 4.9% 94.5% (1.6%) 2.2% (3.3%) 0.4%
6 Dallas/
Ft Worth 9,693 4.1% 92.8% (1.0%) 0.6% (2.3%) 0.5%
7 Los Angeles 4,073 4.1% 95.2% 0.1% (5.7%) 2.6% (0.3%)
8 Denver 7,523 4.0% 92.3% (2.9%) (4.7%) (1.9%) 0.6%
9 DC Suburban
Maryland 5,525 3.5% 94.9% 2.7% 6.5% 0.8% 0.6%
10 New England
(excl
Boston) 6,112 3.5% 95.6% 0.8% 11.4% (5.7%) 0.2%
11 San Diego 3,708 3.4% 93.4% (1.6%) 5.2% (4.4%) (2.3%)
12 Seattle 5,980 3.1% 92.9% (0.2%) 1.8% (1.4%) 1.1%
13 Orlando 7,351 3.1% 92.7% 0.1% 4.2% (2.7%) 0.0%
14 North
Florida 7,181 3.0% 93.6% 1.1% 1.3% 0.9% 0.9%
15 Orange Co 3,013 2.8% 94.7% 0.0% (4.6%) 2.0% (0.4%)
16 New York
Metro Area 2,306 2.7% 92.8% (2.0%) 4.6% (5.3%) (1.6%)
17 Inland
Empire, CA 3,404 2.5% 94.6% (2.0%) (4.8%) (0.6%) (1.1%)
18 Minn/St Paul 4,042 2.3% 90.8% 0.7% (1.8%) 2.6% 0.5%
19 Tampa/
Ft Myers 5,417 2.0% 92.4% 0.7% 5.1% (2.8%) 0.2%
20 Portland 4,304 1.9% 91.1% (1.2%) (1.3%) (1.1%) 0.0%
Top 20
Markets 122,982 72.8% 92.8% (0.3%) 2.4% (1.9%) 0.1%
All Other
Markets 68,296 27.2% 91.9% (0.4%) 1.3% (1.6%) (0.2%)
Total 191,278 100.0% 92.5% (0.3%) 2.0% (1.8%) 0.0%
*Includes the same units as the First Quarter 2003 vs. First Quarter 2002
Same Store results for comparability purposes.
Portfolio Rollforward 2003
Properties Units $ Millions Cap Rate
12/31/2002 1,039 223,591
Acquisitions 3 920 $111.5 7.0%
Dispositions (17) (4,000) $195.0 7.6%
Completed Developments 2 738
03/31/2003 1,027 221,249
Portfolio as of March 31, 2003
Properties Units
Wholly Owned Properties 906 191,875
Partially Owned Properties
(Consolidated) 36 6,931
Unconsolidated Properties 85 22,443
Total Properties 1,027 221,249
Portfolio Summary
As of March 31, 2003
Market Properties Units % of % of 2003
Total Units NOI Budget
Boston 31 5,864 2.7% 5.7%
New England (excluding
Boston) 45 6,112 2.8% 3.6%
DC Suburban Maryland 27 5,833 2.6% 3.4%
DC Northern Virginia 12 4,387 2.0% 3.2%
New York Metro Area 9 2,666 1.2% 2.7%
Richmond 7 1,998 0.9% 0.7%
Atlantic Region 131 26,860 12.1% 19.3%
South Florida 53 11,226 5.1% 5.6%
Orlando 37 7,338 3.3% 2.9%
North Florida 53 8,034 3.6% 2.8%
Tampa/Ft Myers 36 6,653 3.0% 2.2%
Florida Region 179 33,251 15.0% 13.5%
Charlotte 15 4,491 2.0% 1.2%
Raleigh/Durham 16 3,917 1.8% 1.2%
Greensboro 5 1,581 0.7% 0.6%
Greenville 6 1,021 0.5% 0.3%
Carolina Region 42 11,010 5.0% 3.3%
Atlanta 69 15,138 6.8% 5.8%
Birmingham 4 705 0.3% 0.1%
Georgia Region 73 15,843 7.2% 5.9%
Minneapolis/St Paul 19 4,198 1.9% 2.3%
Chicago 8 3,639 1.6% 1.7%
Southeastern Michigan 24 3,867 1.7% 1.6%
Kansas City 9 3,038 1.4% 1.1%
Nashville 13 3,016 1.4% 1.0%
Northern Ohio 26 2,789 1.3% 1.0%
Columbus 31 3,415 1.5% 0.8%
Indianapolis 29 3,056 1.4% 0.8%
Milwaukee 4 1,281 0.6% 0.6%
Southern Ohio 24 1,950 0.9% 0.5%
Tulsa 8 2,036 0.9% 0.4%
Memphis 4 1,528 0.7% 0.4%
Lexington 10 1,458 0.7% 0.4%
St Louis 5 984 0.4% 0.4%
Louisville 9 1,148 0.5% 0.3%
Midwest Region 223 37,403 16.9% 13.2%
Lexford Other 58 5,182 2.3% 1.2%
Dallas/Ft Worth 37 11,473 5.2% 4.1%
Houston 18 5,525 2.5% 2.6%
San Antonio 12 3,789 1.7% 1.1%
Austin 11 3,011 1.4% 0.8%
Texas Region 78 23,798 10.8% 8.6%
Phoenix 45 12,826 5.8% 4.7%
Las Vegas 7 2,078 0.9% 0.8%
Tucson 6 1,820 0.8% 0.6%
Albuquerque 3 601 0.3% 0.2%
Arizona Region 61 17,325 7.8% 6.2%
Denver 29 8,175 3.7% 3.8%
Salt Lake City 2 416 0.2% 0.1%
Colorado Region 31 8,591 3.9% 4.0%
Los Angeles 24 4,716 2.1% 4.1%
San Diego 13 4,048 1.8% 3.8%
Orange County, CA 8 3,013 1.4% 2.6%
Inland Empire, CA 11 3,504 1.6% 2.5%
Southern Cal Region 56 15,281 6.9% 13.1%
San Francisco Bay Area 23 5,274 2.4% 4.1%
Central Valley CA 10 1,595 0.7% 0.5%
Northern Cal Region 33 6,869 3.1% 4.6%
Seattle 38 8,164 3.7% 3.5%
Portland OR 16 5,679 2.6% 2.4%
Tacoma 7 2,341 1.1% 1.0%
Washington Region 61 16,184 7.3% 7.0%
Total 1,026 217,597 98.3% 100.0%
Ft. Lewis - Military
Housing 1 3,652 1.7% 0.0%
Grand Total 1,027 221,249 100.0% 100.0%
Debt Summary as of March 31, 2003
Weighted
$ Millions Average Rate
Secured $2,901 6.05%
Unsecured 2,854 6.36%
Total $5,755 6.20%
Fixed Rate * $5,122 6.70%
Floating Rate * 633 2.23%
Total * $5,755 6.20%
Above Totals Include:
Total Tax Exempt $973 3.63%
Unsecured Revolving Credit Facility $- -
*Net of the effect of any interest rate protection agreements.
Debt Maturity Schedule as of March 31, 2003
Year $ Millions % of Total
2003 $294 5.1%
2004 656 11.4%
2005** 617 10.7%
2006 490 8.5%
2007 300 5.2%
2008 489 8.5%
2009 258 4.5%
2010 199 3.5%
2011 691 12.0%
2012+ 1,761 30.6%
Total $5,755 100.0%
**Includes $300 million with a final maturity of 2015 that is
putable/callable in 2005.
Capitalization as of March 31, 2003
Total Debt $5,755,435,646
Common Shares & OP Units 294,741,805
Common Share Equivalents 14,944,282
Total Outstanding at quarter-end 309,686,087
Common Share Price at March 31, 2003$24.07
7,454,144,114
Perpetual Preferred Shares Liquidation
Value 565,000,000
Perpetual Preference Interests Liquidation
Value 211,500,000
Total Market Capitalization $13,986,079,760
Debt/Total Market Capitalization 41.15%
Unsecured Public Debt Covenants
As Of As Of
03/31/0312/31/02
Total Debt to Adjusted
Total Assets (not to exceed 60%) 40.5% 39.7%
Secured Debt to Adjusted
Total Assets (not to exceed 40%) 20.4% 21.0%
Consolidated Income Available For Debt
Service To Maximum Annual Service Charges
(must be at least 1.5 to 1) 3.05 3.16
Total Unsecured Assets to Unsecured Debt
(must be at least 150%) 350.7% 380.8%
These covenants relate to ERP Operating Limited Partnership's outstanding
unsecured public debt. Equity Residential is the general partner of ERP
Operating Limited Partnership. The terms are defined in the indentures.
Weighted Average Amounts Outstanding
1Q03 1Q02
Weighted Average Amounts Outstanding
for Net Income purposes:
Common Shares - basic 270,677,523 271,093,747
Shares issuable from assumed
conversion/vesting of:
- OP Units 22,271,774 23,011,731
- convertible preferred
shares/units 3,138,681 -
- share options/restricted shares 1,558,400 3,123,202
Total Common Shares and OP Units
- diluted 297,646,378 297,228,680
Weighted Average Amounts Outstanding
for FFO purposes:
OP Units - basic 22,271,774 23,011,731
Common Shares - basic 270,677,523 271,093,747
Total Common Shares and OP Units
- basic 292,949,297 294,105,478
Shares issuable from assumed
conversion/vesting of:
- convertible preferred
shares/units 13,941,606 15,136,569
- share options/restricted shares 1,558,400 3,123,202
Total Common Shares and OP Units
- diluted 308,449,303 312,365,249
Period Ending Amounts Outstanding:
OP Units 22,253,699 22,720,891
Common Shares 272,488,106 273,836,367
Total Common Shares and OP Units 294,741,805 296,557,258
Unconsolidated Entities as of March 31, 2003
(Amounts in thousands except for project and unit amounts)
Institutional Stabilized Projects
Joint Development Under Lexford/
Ventures Projects(A) Development Other Totals
Total projects 45 12 17 22 96(A)
Total units 10,846 3,805 4,659 2,704 22,014(A)
Company's
percentage
ownership
of outstanding
debt 25.0% 100.0% 100.0% 11.1%
Company's share
of outstanding
debt (D) $121,200$295,103$505,587(C) $5,386$927,276
Operating information
for the three months
ended 03/31/03
(at 100%):
Revenue $22,605$11,448 N/A $3,960$38,013
Operating
expenses 9,960 4,493 N/A 1,865 16,318
Net operating
income 12,645 6,955 N/A 2,095 21,695
Interest
expense 9,361 3,777 N/A 1,006 14,144
Depreciation/
amortization 4,933 4,216 N/A 863 10,012
Other 137 60 N/A - 197
Net income/
(loss) $(1,786) $(1,098) N/A $226 $(2,658)
EQR's Funds
from Operations
(FFO) $748$2,854$4,432(E) $215$8,249
(A) The Company determines a project to be stabilized once it has
maintained an average physical occupancy of 90% or more for a
three-month period.
(B) Includes twelve projects under development containing 3,223 units,
which are not included in the Company's property/unit counts at
March 31, 2003. Totals exclude Fort Lewis Military Housing consisting
of one property and 3,652 units, which is not accounted for under the
equity method of accounting. The Fort Lewis Military Housing is
included in the Company's property/unit counts at March 31, 2003.
(C) A total of $763.5 million is available for funding under this
construction debt, of which $505.6 million was funded and outstanding
at March 31, 2003.
(D) As of April 30, 2003, the Company has funded $51.0 million as
additional collateral on selected debt. All remaining debt is non-
recourse to the Company.
(E) Represents capitalized interest on the Company's invested capital.
Development Projects as of March 31, 2003
(Amounts in millions except for project and unit amounts)
Total
EQR Estimated EQR
Funded EQR Funding
No. Estimated as of Future Oblig- Estimated
of Development 03/31 Funding ation Completion
Location Units Cost 2003 Obligation (A) Date
Unconsolidated Projects
1210 Massachusetts Ave.
Washington, DC 142 $36.3 $9.1 $9.1 2Q 2004
13th & N Street
Washington, DC 170 35.4 12.4 12.4 3Q 2003
Ball Park Lofts
Denver, CO 355 56.4 14.1 14.1 2Q 2003
Bella Terra
(Village Green
at Harbour Pointe)
Mukilteo, WA 235 32.7 8.2 8.2 Completed
Bella Vista I&II
(Warner Ridge I&II)
Woodland Hills,
CA 315 80.9 18.8 $4.7 23.5 1Q 2004
Carrollton
Carrollton, TX 284 21.9 5.5 5.5 3Q 2003
City Place
(Westport)
Kansas City, MO 288 34.7 8.7 8.7 Completed
Concord Center
Concord, CA 259 52.3 13.1 13.1 4Q 2003
Highlands of
Lombard
Lombard, IL 403 67.1 16.8 16.8 3Q 2003
Hudson Pointe
Jersey City, NJ 181 45.5 11.7 11.7 2Q 2003
Maples at Little
River
Haverhill, MA 174 28.0 7.0 7.0 3Q 2003
Marina Bay I
Quincy, MA 136 24.8 6.6 6.6 Completed
Marina Bay II
Quincy, MA 108 22.8 5.7 5.7 4Q 2003
North Pier at
Harborside
Jersey City, NJ 297 94.2 23.5 23.5 3Q 2003
Olympus (Legacy
Towers)
Seattle, WA 327 90.0 22.1 0.3 22.4 Completed
Watermarke
Irvine, CA 535 120.6 35.2 35.2 1Q 2004
Water Terrace I
(Regatta I)
Marina Del Rey,
CA 450 235.3 72.5 72.5 Completed
Total Projects:
17 4,659 $1,078.9 $291.0 $5.0 $296.0
(A) EQR's Funding Obligation is generally between 25% and 35% of the
estimated development cost for the unconsolidated projects.
Maintenance Expenses and Capitalized Improvements to Real Estate
For the Three Months Ended March 31, 2003
(Amounts in thousands except for unit and per unit amounts)
Maintenance Expenses
Total Avg. Avg. Avg.
Units Expense Per Payroll Per Per
(A) (B) Unit (C) Unit Total Unit
Established
Properties(F) 181,447 $24,377$134$21,935$121$46,312$255
New Acquisition
Properties(G) 9,443 1,226 138 901 101 2,127 239
Other(H) 7,916 2,462 2,004 4,466
Total 198,806 $28,065$24,840$52,905
Capitalized Improvements to Real Estate
Avg. Building Avg. Avg.
Replacements Per Improvements Per Per
(D) Unit (E) Unit Total Unit
Established
Properties (F) $12,693$70$15,276$84$27,969$154
New Acquisition
Properties (G) 432 48 1,567 176 1,999 224
Other (H) 1,466 2,168 3,634
Total $14,591$19,011$33,602
Total Expenditures
Grand Total Avg. Per Unit
Established
Properties (F) $74,281$409
New Acquisition
Properties (G) 4,126 463
Other (H) 8,100
Total $86,507
(A) Total units exclude 22,443 unconsolidated units.
(B) Maintenance expenses include general maintenance costs, unit turnover
costs including interior painting, regularly scheduled landscaping and
tree trimming costs, security, exterminating, fire protection, snow
and ice removal, elevator repairs, and other miscellaneous building
repair costs.
(C) Maintenance payroll includes employee costs for maintenance, cleaning,
housekeeping, and landscaping.
(D) Replacements include new expenditures inside the units such as
carpets, appliances, mechanical equipment, fixtures and vinyl
flooring.
(E) Building improvements include roof replacement, paving, amenities and
common areas, building mechanical equipment systems, exterior painting
and siding, major landscaping, vehicles and office and maintenance
equipment.
(F) Wholly Owned Properties acquired prior to January 1, 2001.
(G) Wholly Owned Properties acquired during 2001, 2002 and 2003. Per
unit amounts are based on a weighted average of 8,914 units.
(H) Includes properties either Partially Owned or sold during the period,
commercial space and condominium conversions.
Maintenance Expenses and Capitalized Improvements to Real Estate
For the Year Ended December 31, 2002
(Amounts in thousands except for unit and per unit amounts)
Maintenance Expenses
Total Avg. Avg. Avg.
Units Expense Per Payroll Per Per
(A) (B) Unit (C) Unit Total Unit
Established
Properties (F) 171,913 $88,040$512$77,526$451$165,566$963
New Acquisition
Properties (G) 22,146 10,550 541 9,598 493 20,148 1,034
Other (H) 7,758 11,249 8,274 19,523
Total 201,817 $109,839$95,398$205,237
Capitalized Improvements to Real Estate
Avg. Building Avg. Avg.
Replacements Per Improvements Per Per
(D) Unit (E) Unit Total Unit
Established
Properties (F) $49,903$290$65,985$384$115,888$674
New Acquisition
Properties (G) 5,542 285 8,691 446 14,233 731
Other (H) 5,787 20,868 26,655
Total $61,232$95,544$156,776
Total Expenditures
Grand Total Avg. Per Unit
Established
Properties (F) $281,454$1,637
New Acquisition
Properties (G) 34,381 1,765
Other (H) 46,178
Total $362,013
(A) Total units exclude 21,774 unconsolidated units.
(B) Maintenance expenses include general maintenance costs, unit turnover
costs including interior painting, regularly scheduled landscaping and
tree trimming costs, security, exterminating, fire protection, snow
and ice removal, elevator repairs, and other miscellaneous building
repair costs.
(C) Maintenance payroll includes employee costs for maintenance, cleaning,
housekeeping, and landscaping.
(D) Replacements include new expenditures inside the units such as
carpets, appliances, mechanical equipment, fixtures and vinyl
flooring.
(E) Building improvements include roof replacement, paving, amenities and
common areas, building mechanical equipment systems, exterior painting
and siding, major landscaping, vehicles and office and maintenance
equipment.
(F) Wholly Owned Properties acquired prior to January 1, 2000.
(G) Wholly Owned Properties acquired during 2000, 2001 and 2002. Per
unit amounts are based on a weighted average of 19,478 units.
(H) Includes properties either Partially Owned or sold during the period,
commercial space, condominium conversions and $9.1 million included in
building improvements spent on six specific assets related to major
renovations and repositioning of these assets.
As a result of the Securities and Exchange Commission's Regulation FD,
the Company will provide earnings guidance in its quarterly earnings
release.These projections are based on current expectations and are
forward-looking.
2003 Earnings Guidance (per share diluted)
Q2 YEAR
Expected EPS (A) $0.23 to $0.24$1.09 to $1.24
Add: Expected depreciation expense 0.41 1.64
Less: Expected net gain on sales (A) (0.08) (0.48)
Expected FFO (B) $0.56 to $0.57$2.25 to $2.40
2003 Same-Store Operating Assumptions
Physical Occupancy 93.0%
Revenue change (3.5%) to (1.2%)
Expense change 2.8% to 5.2%
NOI change (9.2%) to (3.7%)
Dispositions $700 million
(A)Due to the uncertain timing and extent of property dispositions and
the resulting gains/losses on sales, actual results could differ
materially from expected EPS.
(B) The National Association of Real Estate Investment Trusts ("NAREIT")
defines funds from operations ("FFO") (April 2002 White Paper) as net
income (computed in accordance with accounting principles generally
accepted in the United States), excluding gains (or losses) from sales
of property, plus depreciation and amortization, and after adjustments
for unconsolidated partnerships and joint ventures.Adjustments for
unconsolidated partnerships and joint ventures will be calculated to
reflect funds from operations on the same basis.
SOURCE Equity Residential Properties Trust
-0- 04/30/2003
/CONTACT: Marty McKenna of Equity Residential, +1-312-928-1901/
/Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20010801/ERPTCLOGO
AP Archive: http://photoarchive.ap.org
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/Web site: http://www.equityapartments.com /
(EQR)
CO: Equity Residential Properties Trust
ST: Illinois
IN: FIN RLT
SU: ERN CCA PER
HL-CM
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2196 04/30/200307:51 EDThttp://www.prnewswire.com