Same Store Revenues Increase 4.0%
CHICAGO--(BUSINESS WIRE)--
Equity Residential (NYSE: EQR) today reported results for the quarter
ended March 31, 2011. All per share results are reported on a
fully-diluted basis.
"As expected, fundamentals continued to improve across all of our
markets during the first quarter. With high occupancy and low net
exposure heading into our primary leasing season, 2011 should produce
solid growth in operations,” said David J. Neithercut, Equity
Residential’s President and CEO. “We currently expect to achieve same
store growth in net operating income in the upper half of our guidance
range. However, we have accelerated the disposition pace of non-core
assets as a result of the strong demand for apartment properties and
sold more than $500 million of assets in April. The incremental dilution
from this accelerated activity will likely keep Normalized FFO for the
year near the mid-point of our guidance.”
First Quarter 2011
FFO (Funds from Operations), as defined by the National Association of
Real Estate Investment Trusts (NAREIT), for the first quarter of 2011
was $0.56 per share compared to $0.49 per share in the first quarter of
2010.
For the first quarter of 2011, the company reported Normalized FFO of
$0.56 per share compared to $0.51 per share for the same period of 2010.
The difference is due primarily to:
-
A positive impact of approximately $0.06 per share from higher
property net operating income (NOI) from the company’s same store
portfolio;
-
A positive impact of approximately $0.04 per share of NOI from
lease-up activity and other non-same store property operations;
-
A negative impact of approximately $0.02 per share from higher debt
costs, excluding debt extinguishment costs; and
-
A negative impact of approximately $0.03 per share due to dilution
from share issuance to fund investment activity and various other
items.
The company reports Normalized FFO in order to more accurately reflect
the company’s operating performance. Normalized FFO begins with FFO and
eliminates certain items that by their nature are not comparable from
period to period or that tend to obscure the company’s actual operating
performance. A reconciliation and definition of Normalized FFO are
provided on pages 5 and 24 of this release and the company has included
guidance for Normalized FFO on page 23 of this release.
For the first quarter of 2011, the company reported earnings of $0.42
per share compared to $0.18 per share in the first quarter of 2010. The
difference is due primarily to higher gains from property sales in 2011.
Same Store Results
On a same store first quarter to first quarter comparison, which
includes 112,363 apartment units, revenues increased 4.0%, expenses
decreased 1.0% and NOI increased 7.3%.
Acquisitions/Dispositions
During the first quarter of 2011, the company acquired two apartment
properties with a total of 521 apartment units for an aggregate purchase
price of $139.0 million at a weighted average capitalization (cap) rate
of 5.7%. The company also acquired a 97,000 square foot commercial
building adjacent to its Harbor Steps apartment property in downtown
Seattle, at a purchase price of $11.8 million, for potential
redevelopment.
During the quarter, the company sold 12 consolidated properties,
consisting of 2,731 apartment units, for an aggregate sale price of
$261.8 million at a weighted average cap rate of 6.7% generating an
unlevered internal rate of return (IRR), inclusive of management costs,
of 10.8%.
At-The-Market (ATM) Share Offering Program
During the first quarter of 2011, the company issued approximately 3.0
million common shares at an average price of $50.84 per share for total
consideration of approximately $154.5 million. The company has not
issued any shares under this program since January 13, 2011 and
currently has 10 million shares available for future issuance under this
program. The company will use the proceeds from share sales primarily to
fund its investment activity, including development, and to fund debt
repayment.
Second Quarter 2011 Guidance
The company has established a Normalized FFO guidance range of $0.57 to
$0.61 per share for the second quarter of 2011. The difference between
the company’s first quarter 2011 Normalized FFO of $0.56 per share and
the midpoint of the second quarter guidance range of $0.59 per share is
primarily due to:
-
A positive impact of approximately $0.04 per share from higher same
store and lease-up property NOI in the second quarter of 2011;
-
A positive impact of approximately $0.02 per share from lower debt
costs and various other items; and
-
A negative impact of approximately $0.03 per share from dilution from
2011 transaction activity.
Second Quarter 2011 Conference Call
Equity Residential expects to announce second quarter 2011 results on
Wednesday, July 27, 2011 and host a conference call to discuss those
results at 10:00 a.m. CT on Thursday, July 28, 2011.
Equity Residential is an S&P 500 company focused on the acquisition,
development and management of high quality apartment properties in top
U.S. growth markets. Equity Residential owns or has investments in 442
properties located in 17 states and the District of Columbia, consisting
of 127,711 apartment units. For more information on Equity Residential,
please visit our website at www.equityapartments.com.
Forward-Looking Statements
In addition to historical information, this press release contains
forward-looking statements and information within the meaning of the
federal securities laws. These statements are based on current
expectations, estimates, projections and assumptions made by management.
While Equity Residential’s management believes the assumptions
underlying its forward-looking statements are reasonable, such
information is inherently subject to uncertainties and may involve
certain risks, including, without limitation, changes in general market
conditions, including the rate of job growth and cost of labor and
construction material, the level of new multifamily construction and
development, competition and local government regulation. 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, Thursday, April 28, 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, |
| | | | 2011 | | 2010 |
| REVENUES | | | | |
|
Rental income
| |
$
|
518,817
| | |
$
|
462,577
| |
|
Fee and asset management
| |
|
1,806
|
| |
|
2,422
|
|
| | | | | |
|
| |
Total revenues
| |
|
520,623
|
| |
|
464,999
|
|
| | | | | |
|
| EXPENSES | | | | |
|
Property and maintenance
| | |
128,357
| | | |
120,203
| |
|
Real estate taxes and insurance
| | |
56,024
| | | |
55,575
| |
|
Property management
| | |
22,381
| | | |
20,492
| |
|
Fee and asset management
| | |
948
| | | |
1,958
| |
|
Depreciation
| | |
167,968
| | | |
146,042
| |
|
General and administrative
| |
|
11,435
|
| |
|
10,721
|
|
| | | | | |
|
| |
Total expenses
| |
|
387,113
|
| |
|
354,991
|
|
| | | | | |
|
|
Operating income
| | |
133,510
| | | |
110,008
| |
| | | | | |
|
|
Interest and other income
| | |
972
| | | |
2,220
| |
|
Other expenses
| | |
(2,164
|
)
| | |
(4,383
|
)
|
|
Interest:
| | | | |
| |
Expense incurred, net
| | |
(121,376
|
)
| | |
(114,111
|
)
|
| |
Amortization of deferred financing costs
| |
|
(3,023
|
)
| |
|
(2,996
|
)
|
| | | | | |
|
|
Income (loss) before income and other taxes, (loss) from investments
| | | | |
|
in unconsolidated entities, net gain on sales of unconsolidated
entities
| | | | |
|
and discontinued operations
| | |
7,919
| | | |
(9,262
|
)
|
|
Income and other tax (expense) benefit
| | |
(192
|
)
| | |
(159
|
)
|
|
(Loss) from investments in unconsolidated entities
| | |
-
| | | |
(464
|
)
|
|
Net gain on sales of unconsolidated entities
| |
|
-
|
| |
|
478
|
|
|
Income (loss) from continuing operations
| | |
7,727
| | | |
(9,407
|
)
|
|
Discontinued operations, net
| |
|
125,339
|
| |
|
67,263
|
|
|
Net income
| | |
133,066
| | | |
57,856
| |
|
Net (income) loss attributable to Noncontrolling Interests:
| | | | |
|
Operating Partnership
| | |
(5,775
|
)
| | |
(2,623
|
)
|
|
Partially Owned Properties
| |
|
40
|
| |
|
250
|
|
|
Net income attributable to controlling interests
| | |
127,331
| | | |
55,483
| |
|
Preferred distributions
| |
|
(3,466
|
)
| |
|
(3,620
|
)
|
|
Net income available to Common Shares
| |
$
|
123,865
|
| |
$
|
51,863
|
|
| | | | | |
|
| Earnings per share – basic: | | | | |
|
Income (loss) from continuing operations available to Common Shares
| |
$
|
0.01
|
| |
$
|
(0.04
|
)
|
|
Net income available to Common Shares
| |
$
|
0.42
|
| |
$
|
0.18
|
|
|
Weighted average Common Shares outstanding
| |
|
292,895
|
| |
|
280,645
|
|
| | | | | |
|
| Earnings per share – diluted: | | | | |
|
Income (loss) from continuing operations available to Common Shares
| |
$
|
0.01
|
| |
$
|
(0.04
|
)
|
|
Net income available to Common Shares
| |
$
|
0.42
|
| |
$
|
0.18
|
|
|
Weighted average Common Shares outstanding
| |
|
310,467
|
| |
|
280,645
|
|
| | | | | |
|
|
Distributions declared per Common Share outstanding
| |
$
|
0.3375
|
| |
$
|
0.3375
|
|
| Equity Residential |
| Consolidated Statements of Funds From Operations and Normalized
Funds From Operations |
|
(Amounts in thousands except per share data)
|
|
(Unaudited)
|
|
|
| |
| |
| |
| | | | | |
|
| | | | Quarter Ended March 31, |
| | | | 2011 | | 2010 |
| | | | | |
|
|
Net income
| |
$
|
133,066
| |
|
$
|
57,856
| |
|
Adjustments:
| | | | |
|
Net (income) loss attributable to Noncontrolling Interests –
| | | | |
| |
Partially Owned Properties
| | |
40
| | | |
250
| |
|
Depreciation
| | |
167,968
| | | |
146,042
| |
|
Depreciation – Non-real estate additions
| | |
(1,438
|
)
| | |
(1,693
|
)
|
|
Depreciation – Partially Owned and Unconsolidated Properties
| | |
(750
|
)
| | |
11
| |
|
Net (gain) on sales of unconsolidated entities
| | |
-
| | | |
(478
|
)
|
|
Discontinued operations:
| | | | |
| |
Depreciation
| | |
1,395
| | | |
6,692
| |
| |
Net (gain) on sales of discontinued operations
| | |
(123,754
|
)
| | |
(60,036
|
)
|
| |
Net incremental gain on sales of condominium units
| |
|
395
|
| |
|
388
|
|
| | | | | |
|
|
FFO (1) (3)
| | |
176,922
| | | |
149,032
| |
| | | | | |
|
|
Adjustments (see page 22 for additional detail):
| | | | |
|
Asset impairment and valuation allowances
| | |
-
| | | |
-
| |
|
Property acquisition costs and write-off of pursuit costs (other
expenses)
| | |
2,164
| | | |
4,383
| |
|
Debt extinguishment (gains) losses, including prepayment penalties,
preferred
| | | |
| |
share redemptions and non-cash convertible debt discounts
| | |
2,063
| | | |
2,872
| |
|
(Gains) losses on sales of non-operating assets, net of income and
other
| | | | |
| |
tax expense (benefit)
| | |
(376
|
)
| | |
(367
|
)
|
|
Other miscellaneous non-comparable items
| |
|
(2,100
|
)
| |
|
(2,000
|
)
|
| | | | | |
|
|
Normalized FFO (2) (3)
| |
$
|
178,673
|
| |
$
|
153,920
|
|
| | | | | |
|
|
FFO (1) (3)
| |
$
|
176,922
| | |
$
|
149,032
| |
|
Preferred distributions
| |
|
(3,466
|
)
| |
|
(3,620
|
)
|
| | | | | |
|
|
FFO available to Common Shares and Units - basic (1) (3) (4)
| |
$
|
173,456
|
| |
$
|
145,412
|
|
| | | | | |
|
|
FFO available to Common Shares and Units - diluted (1) (3) (4)
| |
$
|
173,456
|
| |
$
|
145,565
|
|
| | | | | |
|
|
FFO per share and Unit - basic
| |
$
|
0.57
|
| |
$
|
0.49
|
|
| | | | | |
|
|
FFO per share and Unit - diluted
| |
$
|
0.56
|
| |
$
|
0.49
|
|
| | | | | |
|
|
Normalized FFO (2) (3)
| |
$
|
178,673
| | |
$
|
153,920
| |
|
Preferred distributions
| |
|
(3,466
|
)
| |
|
(3,620
|
)
|
| | | | | |
|
|
Normalized FFO available to Common Shares and Units - basic (2) (3)
(4)
| |
$
|
175,207
|
| |
$
|
150,300
|
|
| | | | | |
|
|
Normalized FFO available to Common Shares and Units - diluted (2)
(3) (4)
| |
$
|
175,207
|
| |
$
|
150,453
|
|
| | | | | |
|
|
Normalized FFO per share and Unit - basic
| |
$
|
0.57
|
| |
$
|
0.51
|
|
| | | | | |
|
|
Normalized FFO per share and Unit - diluted
| |
$
|
0.56
|
| |
$
|
0.51
|
|
| | | | | |
|
|
Weighted average Common Shares and Units outstanding - basic
| |
|
306,248
|
| |
|
294,450
|
|
| | | | | |
|
|
Weighted average Common Shares and Units outstanding - diluted
| |
|
310,467
|
| |
|
297,286
|
|
| | | | | |
|
Note: See page 22 for additional detail regarding the
adjustments from FFO to Normalized FFO. See page 24 for the
definitions,
the footnotes referenced above and the
reconciliations of EPS to FFO and Normalized FFO. |
| Equity Residential |
| Consolidated Balance Sheets |
|
(Amounts in thousands except for share amounts)
|
|
(Unaudited)
|
|
|
|
| |
| |
| |
| | | | | March 31, | | December 31, |
| | | | | 2011 | | 2010 |
| ASSETS | | | | |
|
Investment in real estate
| | | | |
|
Land
| |
$
|
4,107,769
| | |
$
|
4,110,275
| |
|
Depreciable property
| | |
15,279,033
| | | |
15,226,512
| |
|
Projects under development
| | |
97,151
| | | |
130,337
| |
|
Land held for development
| |
|
211,968
|
| |
|
235,247
|
|
|
Investment in real estate
| | |
19,695,921
| | | |
19,702,371
| |
|
Accumulated depreciation
| |
|
(4,424,078
|
)
| |
|
(4,337,357
|
)
|
|
Investment in real estate, net
| | |
15,271,843
| | | |
15,365,014
| |
| | | | | | |
|
|
Cash and cash equivalents
| | |
306,072
| | | |
431,408
| |
|
Investments in unconsolidated entities
| | |
3,533
| | | |
3,167
| |
|
Deposits – restricted
| | |
309,605
| | | |
180,987
| |
|
Escrow deposits – mortgage
| | |
12,087
| | | |
12,593
| |
|
Deferred financing costs, net
| | |
39,182
| | | |
42,033
| |
|
Other assets
| |
|
133,007
|
| |
|
148,992
|
|
| | | Total assets | | $ | 16,075,329 |
| | $ | 16,184,194 |
|
| | | | | | |
|
| LIABILITIES AND EQUITY | | | | |
|
Liabilities:
| | | | |
|
Mortgage notes payable
| |
$
|
4,583,545
| | |
$
|
4,762,896
| |
|
Notes, net
| | |
5,092,967
| | | |
5,185,180
| |
|
Lines of credit
| | |
-
| | | |
-
| |
|
Accounts payable and accrued expenses
| | |
80,385
| | | |
39,452
| |
|
Accrued interest payable
| | |
71,972
| | | |
98,631
| |
|
Other liabilities
| | |
260,873
| | | |
304,202
| |
|
Security deposits
| | |
60,784
| | | |
60,812
| |
|
Distributions payable
| |
|
106,020
|
| |
|
140,905
|
|
| | | Total liabilities | |
| 10,256,546 |
| |
| 10,592,078 |
|
| | | | | | |
|
| Commitments and contingencies | | | | |
| | | | | | |
|
| Redeemable Noncontrolling Interests – Operating Partnership | |
| 416,334 |
| |
| 383,540 |
|
| | | | | | |
|
|
Equity:
| | | | |
|
Shareholders' equity:
| | | | |
| |
Preferred Shares of beneficial interest, $0.01 par value;
| | | | |
| | |
100,000,000 shares authorized; 1,600,000 shares issued
| | | | |
| | |
and outstanding as of March 31, 2011 and December 31, 2010
| | |
200,000
| | | |
200,000
| |
| |
Common Shares of beneficial interest, $0.01 par value;
| | | | |
| | |
1,000,000,000 shares authorized; 294,522,273 shares issued
| | | | |
| | |
and outstanding as of March 31, 2011 and 290,197,242
| | | | |
| | |
shares issued and outstanding as of December 31, 2010
| | |
2,945
| | | |
2,902
| |
| |
Paid in capital
| | |
4,898,435
| | | |
4,741,521
| |
| |
Retained earnings
| | |
228,092
| | | |
203,581
| |
| |
Accumulated other comprehensive (loss)
| |
|
(50,634
|
)
| |
|
(57,818
|
)
|
| | |
Total shareholders' equity
| | |
5,278,838
| | | |
5,090,186
| |
|
Noncontrolling Interests:
| | | | |
| |
Operating Partnership
| | |
115,924
| | | |
110,399
| |
| |
Partially Owned Properties
| |
|
7,687
|
| |
|
7,991
|
|
| | |
Total Noncontrolling Interests
| |
|
123,611
|
| |
|
118,390
|
|
| | | Total equity | |
| 5,402,449 |
| |
| 5,208,576 |
|
| | | Total liabilities and equity | | $ | 16,075,329 |
| | $ | 16,184,194 |
|
|
|
| Equity Residential |
| Portfolio Summary |
| As of March 31, 2011 |
|
| |
| |
| |
| |
| |
| |
| | | | | | | |
% of Total
| |
% of
| |
Average
|
| | | | | |
Apartment
| |
Apartment
| |
Stabilized
| |
Rental
|
| |
Markets
| |
Properties
| |
Units
| |
Units
| |
NOI
| |
Rate (1)
|
| | | | | | | | | | | |
|
|
1
| |
New York Metro Area
| |
28
| |
8,290
| |
6.5%
| |
12.8%
| |
$ 2,878
|
|
2
| |
DC Northern Virginia
| |
31
| |
10,393
| |
8.1%
| |
12.2%
| |
1,903
|
|
3
| |
South Florida
| |
39
| |
13,094
| |
10.3%
| |
9.3%
| |
1,344
|
|
4
| |
Los Angeles
| |
39
| |
8,311
| |
6.5%
| |
8.1%
| |
1,708
|
|
5
| |
Boston
| |
29
| |
6,007
| |
4.7%
| |
7.5%
| |
2,222
|
|
6
| |
Seattle/Tacoma
| |
43
| |
9,843
| |
7.7%
| |
7.0%
| |
1,315
|
|
7
| |
San Francisco Bay Area
| |
33
| |
6,194
| |
4.9%
| |
5.7%
| |
1,713
|
|
8
| |
San Diego
| |
14
| |
4,963
| |
3.9%
| |
5.3%
| |
1,799
|
|
9
| |
Denver
| |
23
| |
7,967
| |
6.2%
| |
4.8%
| |
1,050
|
|
10
| |
Phoenix
| |
35
| |
10,405
| |
8.1%
| |
4.7%
| |
857
|
|
11
| |
Orlando
| |
26
| |
8,042
| |
6.3%
| |
4.2%
| |
991
|
|
12
| |
Suburban Maryland
| |
16
| |
4,660
| |
3.7%
| |
3.9%
| |
1,456
|
|
13
| |
Orange County, CA
| |
11
| |
3,490
| |
2.7%
| |
3.2%
| |
1,545
|
|
14
| |
Inland Empire, CA
| |
11
| |
3,639
| |
2.8%
| |
2.8%
| |
1,381
|
|
15
| |
Atlanta
| |
18
| |
5,713
| |
4.5%
| |
2.8%
| |
964
|
|
16
| |
All Other Markets (2)
| |
44
| |
11,895
| |
9.3%
| |
5.7%
| |
990
|
| | | | | | | | | | | |
|
| | Total | | 440 | | 122,906 | | 96.2% | | 100.0% | | 1,473 |
| | | | | | | | | | | |
|
| |
Military Housing
| |
2
| |
4,805
| |
3.8%
| |
-
| |
-
|
| | | | | | | | | | | |
|
| | Grand Total | | 442 | | 127,711 | | 100.0% | | 100.0% | | $ 1,473 |
(1) Average rental rate is defined as total rental revenues divided by
the weighted average occupied apartment units for the month of March
2011.
(2) All Other Markets - Each individual market is less than 2.0% of
stabilized NOI.
Note: Projects under development are not included in the Portfolio
Summary until construction has been completed, at which time they are
included at their projected stabilized NOI.
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
|
|
|
|
| |
| |
| |
| |
| Portfolio as of March 31, 2011 |
| | | | | | | | | |
|
| | | | | | | | | |
Apartment
|
| | | | | | | |
Properties
|
|
Units
|
| | | | | | | | | |
|
| | |
Wholly Owned Properties
| | | |
417
| |
118,078
|
| | |
Partially Owned Properties - Consolidated
| |
23
| |
4,828
|
| | |
Military Housing
| | | |
2
| |
4,805
|
| | | | | | | | | |
|
| | | | | | | |
442
| |
127,711
|
|
|
| Portfolio Rollforward Q1 2011 |
|
($ in thousands)
|
|
|
| |
| |
| |
| |
| |
| |
| | | | | | | |
Apartment
| |
Purchase/
| | |
| | | | | |
Properties
| |
Units
| |
(Sale) Price
| |
Cap Rate
|
| | | | | | | | | | | |
|
| | | |
12/31/2010
| |
451
| | |
129,604
| | | | | |
| | | | | | | | | | | |
|
|
Acquisitions:
| | | | | | | | | | |
|
Rental Properties - Consolidated
| |
2
| | |
521
| | |
$
|
139,018
| | |
5.7
|
%
|
|
Other (1)
| | | |
-
| | |
-
| | |
$
|
11,750
| | |
-
| |
|
Dispositions:
| | | | | | | | | | |
|
Rental Properties - Consolidated
| |
(12
|
)
| |
(2,731
|
)
| |
$
|
(261,771
|
)
| |
6.7
|
%
|
|
Completed Developments
| |
1
| | |
250
| | | | | |
|
Configuration Changes
| |
-
|
| |
67
|
| | | | |
| | | | | | | | | | | |
|
| | | |
3/31/2011
| |
442
|
| |
127,711
|
| | | | |
(1) Represents the acquisition of a 97,000 square foot commercial
building adjacent to our Harbor Steps apartment property in downtown
Seattle for potential redevelopment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
| |
| |
| |
| |
| |
| First Quarter 2011 vs. First Quarter 2010 |
| Same Store Results/Statistics |
|
$ in thousands (except for Average Rental Rate) - 112,363 Same Store
Apartment Units
|
| | | | | | | | | | | | |
|
| | |
Results
| |
Statistics
|
| | | | | | | | |
Average
| | | | |
| | | | | | | | |
Rental
| | | | |
|
Description
| |
Revenues
| |
Expenses
| |
NOI (1)
| |
Rate (2)
| |
Occupancy
| |
Turnover
|
| | | | | | | | | | | | |
|
|
Q1 2011
| |
$
|
447,947
| | |
$
|
168,239
| | |
$
|
279,708
| | |
$
|
1,400
| | |
95.0
|
%
| |
11.6
|
%
|
|
Q1 2010
| |
$
|
430,673
|
| |
$
|
170,021
|
| |
$
|
260,652
|
| |
$
|
1,352
|
| |
94.6
|
%
| |
11.8
|
%
|
| | | | | | | | | | | | |
|
|
Change
| |
$
|
17,274
|
| |
$
|
(1,782
|
)
| |
$
|
19,056
|
| |
$
|
48
|
| |
0.4
|
%
| |
(0.2
|
%)
|
| | | | | | | | | | | | |
|
|
Change
| | |
4.0
|
%
| | |
(1.0
|
%)
| | |
7.3
|
%
| | |
3.6
|
%
| | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | |
|
| First Quarter 2011 vs. Fourth Quarter 2010 |
| Same Store Results/Statistics |
|
$ in thousands (except for Average Rental Rate) - 117,472 Same Store
Apartment Units
|
| | | | | | | | | | | | |
|
| | |
Results
| |
Statistics
|
| | | | | | | | |
Average
| | | | |
| | | | | | | | |
Rental
| | | | |
|
Description
| |
Revenues
| |
Expenses
| |
NOI (1)
| |
Rate (2)
| |
Occupancy
| |
Turnover
|
| | | | | | | | | | | | |
|
|
Q1 2011
| |
$ 479,637
| |
$ 181,855
| |
$ 297,782
| |
$ 1,434
| |
95.0%
| |
11.5%
|
|
Q4 2010
| |
$ 473,489
| |
$ 171,575
| |
$ 301,914
| |
$ 1,422
| |
94.6%
| |
12.9%
|
| | | | | | | | | | | | |
|
|
Change
| |
$ 6,148
| |
$ 10,280
| |
$ (4,132)
| |
$ 12
| |
0.4%
| |
(1.4%)
|
| | | | | | | | | | | | |
|
|
Change
| |
1.3%
| |
6.0%
| |
(1.4%)
| |
0.8%
| | | | |
(1) 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. The Company believes
that NOI is helpful to investors as a supplemental measure of its
operating performance because it is a direct measure of the actual
operating results of the Company's apartment communities. See page 24
for reconciliations from operating income.
(2) Average rental rate is defined as total rental revenues divided by
the weighted average occupied apartment units for the period.
|
|
| Equity Residential |
| First Quarter 2011 vs. First Quarter 2010 |
| Same Store Results/Statistics by Market |
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | |
Increase (Decrease) from Prior Year's Quarter
|
| | | | | |
Q1 2011
| |
Q1 2011
| |
Q1 2011
| | | | | | | | | | |
| | | | | |
% of
| |
Average
| |
Weighted
| | | | | | | |
Average
| | |
| | | |
Apartment
| |
Actual
| |
Rental
| |
Average
| | | | | | | |
Rental
| | |
| |
Markets
| |
Units
| |
NOI
| |
Rate (1)
| |
Occupancy %
|
|
Revenues
| |
Expenses
| |
NOI
| |
Rate (1)
| |
Occupancy
|
| | | | | | | | | | | | | | | | | | | |
|
|
1
| |
DC Northern Virginia
| |
9,107
| |
10.9
|
%
| |
$
|
1,749
| |
95.2
|
%
| |
6.4
|
%
| |
(1.9
|
%)
| |
11.0
|
%
| |
5.9
|
%
| |
0.4
|
%
|
|
2
| |
South Florida
| |
12,465
| |
10.1
|
%
| | |
1,318
| |
94.8
|
%
| |
4.0
|
%
| |
(1.2
|
%)
| |
7.6
|
%
| |
4.1
|
%
| |
(0.1
|
%)
|
|
3
| |
New York Metro Area
| |
5,887
| |
9.2
|
%
| | |
2,674
| |
95.4
|
%
| |
4.8
|
%
| |
3.5
|
%
| |
5.7
|
%
| |
4.7
|
%
| |
0.0
|
%
|
|
4
| |
Los Angeles
| |
7,463
| |
8.5
|
%
| | |
1,697
| |
94.8
|
%
| |
1.5
|
%
| |
(4.7
|
%)
| |
5.0
|
%
| |
1.4
|
%
| |
0.1
|
%
|
|
5
| |
Boston
| |
5,521
| |
7.6
|
%
| | |
2,188
| |
95.3
|
%
| |
4.8
|
%
| |
1.3
|
%
| |
7.2
|
%
| |
3.8
|
%
| |
1.0
|
%
|
|
6
| |
Seattle/Tacoma
| |
8,385
| |
6.8
|
%
| | |
1,328
| |
93.8
|
%
| |
4.6
|
%
| |
(0.6
|
%)
| |
8.2
|
%
| |
3.8
|
%
| |
0.7
|
%
|
|
7
| |
San Francisco Bay Area
| |
5,512
| |
6.2
|
%
| | |
1,717
| |
95.7
|
%
| |
4.1
|
%
| |
(1.4
|
%)
| |
7.5
|
%
| |
3.5
|
%
| |
0.6
|
%
|
|
8
| |
Denver
| |
7,759
| |
5.6
|
%
| | |
1,055
| |
95.0
|
%
| |
5.1
|
%
| |
(0.7
|
%)
| |
8.2
|
%
| |
5.2
|
%
| |
(0.1
|
%)
|
|
9
| |
Phoenix
| |
10,405
| |
5.6
|
%
| | |
861
| |
95.4
|
%
| |
4.5
|
%
| |
(4.2
|
%)
| |
10.9
|
%
| |
3.0
|
%
| |
1.3
|
%
|
|
10
| |
Orlando
| |
8,042
| |
4.9
|
%
| | |
989
| |
95.0
|
%
| |
3.4
|
%
| |
(0.3
|
%)
| |
5.9
|
%
| |
2.5
|
%
| |
0.8
|
%
|
|
11
| |
San Diego
| |
4,103
| |
4.6
|
%
| | |
1,666
| |
94.8
|
%
| |
1.6
|
%
| |
2.2
|
%
| |
1.3
|
%
| |
1.6
|
%
| |
0.0
|
%
|
|
12
| |
Suburban Maryland
| |
4,203
| |
3.8
|
%
| | |
1,363
| |
94.4
|
%
| |
4.4
|
%
| |
(8.0
|
%)
| |
12.7
|
%
| |
3.9
|
%
| |
0.4
|
%
|
|
13
| |
Orange County, CA
| |
3,307
| |
3.5
|
%
| | |
1,521
| |
95.2
|
%
| |
2.1
|
%
| |
0.2
|
%
| |
3.0
|
%
| |
1.7
|
%
| |
0.5
|
%
|
|
14
| |
Inland Empire, CA
| |
3,639
| |
3.4
|
%
| | |
1,371
| |
95.1
|
%
| |
3.1
|
%
| |
(2.7
|
%)
| |
6.2
|
%
| |
2.7
|
%
| |
0.4
|
%
|
|
15
| |
Atlanta
| |
5,509
| |
3.1
|
%
| | |
971
| |
95.6
|
%
| |
1.7
|
%
| |
(4.2
|
%)
| |
6.5
|
%
| |
1.9
|
%
| |
(0.2
|
%)
|
|
16
| |
All Other Markets
| |
11,056
| |
6.2
|
%
| |
|
980
| |
95.1
|
%
| |
4.1
|
%
| |
0.0
|
%
| |
7.5
|
%
| |
3.4
|
%
| |
0.6
|
%
|
| | | | | | | | | | | | | | | | | | | |
|
| |
Total
| |
112,363
| |
100.0
|
%
| |
$
|
1,400
| |
95.0
|
%
| |
4.0
|
%
| |
(1.0
|
%)
| |
7.3
|
%
| |
3.6
|
%
| |
0.4
|
%
|
(1) Average rental rate is defined as total rental revenues divided by
the weighted average occupied apartment units for the period.
|
|
| Equity Residential |
| First Quarter 2011 vs. Fourth Quarter 2010 |
| Same Store Results/Statistics by Market |
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | |
Increase (Decrease) from Prior Quarter
|
| | | | | |
Q1 2011
| |
Q1 2011
| |
Q1 2011
| | | | | | | | | | |
| | | | | |
% of
| |
Average
| |
Weighted
| | | | | | | |
Average
| | |
| | | |
Apartment
| |
Actual
| |
Rental
| |
Average
| | | | | | | |
Rental
| | |
| |
Markets
| |
Units
| |
NOI
| |
Rate (1)
| |
Occupancy %
|
|
Revenues
| |
Expenses
| |
NOI
| |
Rate (1)
| |
Occupancy
|
| | | | | | | | | | | | | | | | | | | |
|
|
1
| |
New York Metro Area
| |
7,277
| |
11.4
|
%
| |
$
|
2,928
| |
95.3
|
%
| |
1.7
|
%
| |
8.4
|
%
| |
(3.1
|
%)
| |
1.2
|
%
| |
0.4
|
%
|
|
2
| |
DC Northern Virginia
| |
9,834
| |
11.4
|
%
| | |
1,802
| |
95.1
|
%
| |
1.1
|
%
| |
11.9
|
%
| |
(3.5
|
%)
| |
1.2
|
%
| |
(0.1
|
%)
|
|
3
| |
South Florida
| |
12,465
| |
9.5
|
%
| | |
1,318
| |
94.8
|
%
| |
2.2
|
%
| |
5.5
|
%
| |
0.2
|
%
| |
1.3
|
%
| |
0.8
|
%
|
|
4
| |
Los Angeles
| |
7,871
| |
8.4
|
%
| | |
1,699
| |
94.8
|
%
| |
(0.2
|
%)
| |
(1.4
|
%)
| |
0.5
|
%
| |
(0.1
|
%)
| |
(0.1
|
%)
|
|
5
| |
Boston
| |
5,521
| |
7.1
|
%
| | |
2,188
| |
95.3
|
%
| |
0.8
|
%
| |
10.5
|
%
| |
(4.5
|
%)
| |
1.2
|
%
| |
(0.4
|
%)
|
|
6
| |
Seattle/Tacoma
| |
9,272
| |
7.0
|
%
| | |
1,318
| |
93.9
|
%
| |
1.4
|
%
| |
5.1
|
%
| |
(0.8
|
%)
| |
0.5
|
%
| |
0.8
|
%
|
|
7
| |
San Francisco Bay Area
| |
6,056
| |
6.3
|
%
| | |
1,705
| |
95.6
|
%
| |
1.9
|
%
| |
7.3
|
%
| |
(0.9
|
%)
| |
0.8
|
%
| |
1.1
|
%
|
|
8
| |
Denver
| |
7,967
| |
5.4
|
%
| | |
1,048
| |
95.0
|
%
| |
0.3
|
%
| |
0.5
|
%
| |
0.2
|
%
| |
0.2
|
%
| |
0.0
|
%
|
|
9
| |
Phoenix
| |
10,405
| |
5.2
|
%
| | |
861
| |
95.4
|
%
| |
2.5
|
%
| |
3.4
|
%
| |
1.9
|
%
| |
1.5
|
%
| |
0.9
|
%
|
|
10
| |
Orlando
| |
8,042
| |
4.6
|
%
| | |
989
| |
95.0
|
%
| |
2.9
|
%
| |
8.6
|
%
| |
(0.5
|
%)
| |
2.0
|
%
| |
0.9
|
%
|
|
11
| |
San Diego
| |
4,284
| |
4.5
|
%
| | |
1,675
| |
94.7
|
%
| |
0.1
|
%
| |
2.8
|
%
| |
(1.3
|
%)
| |
0.1
|
%
| |
(0.1
|
%)
|
|
12
| |
Suburban Maryland
| |
4,203
| |
3.5
|
%
| | |
1,363
| |
94.4
|
%
| |
0.9
|
%
| |
5.8
|
%
| |
(1.6
|
%)
| |
1.0
|
%
| |
(0.1
|
%)
|
|
13
| |
Orange County, CA
| |
3,307
| |
3.3
|
%
| | |
1,521
| |
95.2
|
%
| |
0.7
|
%
| |
0.5
|
%
| |
0.8
|
%
| |
0.3
|
%
| |
0.4
|
%
|
|
14
| |
Inland Empire, CA
| |
3,639
| |
3.2
|
%
| | |
1,371
| |
95.1
|
%
| |
0.8
|
%
| |
2.3
|
%
| |
0.1
|
%
| |
0.5
|
%
| |
0.3
|
%
|
|
15
| |
Atlanta
| |
5,713
| |
3.1
|
%
| | |
967
| |
95.6
|
%
| |
0.8
|
%
| |
6.6
|
%
| |
(3.1
|
%)
| |
0.9
|
%
| |
(0.1
|
%)
|
|
16
| |
All Other Markets
| |
11,616
| |
6.1
|
%
| |
|
972
| |
95.2
|
%
| |
1.7
|
%
| |
6.7
|
%
| |
(1.9
|
%)
| |
1.0
|
%
| |
0.7
|
%
|
| | | | | | | | | | | | | | | | | | | |
|
| |
Total
| |
117,472
| |
100.0
|
%
| |
$
|
1,434
| |
95.0
|
%
| |
1.3
|
%
| |
6.0
|
%
| |
(1.4
|
%)
| |
0.8
|
%
| |
0.4
|
%
|
(1) Average rental rate is defined as total rental revenues divided by
the weighted average occupied apartment units for the period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
|
| | | | |
| |
| |
| |
| |
| | | | | | | | | | | |
|
| First Quarter 2011 vs. First Quarter 2010 |
| Same Store Operating Expenses |
|
$ in thousands - 112,363 Same Store Apartment Units
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
% of Actual
|
| | | | | | | | | | | |
Q1 2011
|
| | | |
Actual
| |
Actual
| |
$
| |
%
| |
Operating
|
| | | |
Q1 2011
| |
Q1 2010
| |
Change
| |
Change
| |
Expenses
|
| | | | | | | | | | | |
|
|
Real estate taxes
| | |
$ 44,613
| |
$ 44,445
| |
$ 168
| |
0.4%
| |
26.5%
|
|
On-site payroll (1)
| | |
39,757
| |
40,453
| |
(696)
| |
(1.7%)
| |
23.6%
|
|
Utilities (2)
| | |
28,285
| |
27,752
| |
533
| |
1.9%
| |
16.8%
|
|
Repairs and maintenance (3)
| | |
23,501
| |
25,034
| |
(1,533)
| |
(6.1%)
| |
14.0%
|
|
Property management costs (4)
| | |
18,097
| |
17,227
| |
870
| |
5.1%
| |
10.8%
|
|
Insurance
| | |
5,256
| |
5,571
| |
(315)
| |
(5.7%)
| |
3.1%
|
|
Leasing and advertising
| | |
3,218
| |
3,802
| |
(584)
| |
(15.4%)
| |
1.9%
|
|
Other on-site operating expenses (5)
| |
5,512
| |
5,737
| |
(225)
| |
(3.9%)
| |
3.3%
|
| | | | | | | | | | | |
|
|
Same store operating expenses
| |
$ 168,239
| |
$ 170,021
| |
$ (1,782)
| |
(1.0%)
| |
100.0%
|
(1) On-site payroll - Includes payroll and related expenses for on-site
personnel including property managers, leasing consultants and
maintenance staff.
(2) Utilities - Represents gross expenses prior to any recoveries under
the Resident Utility Billing System ("RUBS"). Recoveries are reflected
in rental income.
(3) Repairs and maintenance - Includes general maintenance costs,
apartment unit turnover costs including interior painting, routine
landscaping, security, exterminating, fire protection, snow removal,
elevator, roof and parking lot repairs and other miscellaneous building
repair costs.
(4) Property management costs - Includes payroll and related expenses
for departments, or portions of departments, that directly support
on-site management. These include such departments as regional and
corporate property management, property accounting, human resources,
training, marketing and revenue management, procurement, real estate
tax, property legal services and information technology.
(5) Other on-site operating expenses - Includes administrative costs
such as office supplies, telephone and data charges and association and
business licensing fees.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
|
| | | | | |
| |
| |
| |
| |
| Debt Summary as of March 31, 2011 |
|
(Amounts in thousands)
|
| | | | | | | | | | | | |
|
| | | | | | | | | | | | |
Weighted
|
| | | | | | | | | | |
Weighted
| |
Average
|
| | | | | | | | | | |
Average
| |
Maturities
|
| | | | | | |
Amounts (1)
| |
% of Total
| |
Rates (1)
| |
(years)
|
| | | | | | | | | | | | |
|
|
Secured
| | | | |
$
|
4,583,545
| |
47.4%
| |
4.76%
| |
8.1
|
|
Unsecured
| | | | |
|
5,092,967
| |
52.6%
| |
5.08%
| |
4.3
|
| | | | | | | | | | | | |
|
| |
Total
| | | |
$
|
9,676,512
| |
100.0%
| |
4.93%
| |
6.1
|
| | | | | | | | | | | | |
|
|
Fixed Rate Debt:
| | | | | | | | | | |
|
Secured - Conventional
| | | |
$
|
3,737,865
| |
38.6%
| |
5.60%
| |
6.9
|
|
Unsecured - Public/Private
| | |
|
4,284,995
| |
44.3%
| |
5.71%
| |
5.0
|
| | | | | | | | | | | | |
|
| |
Fixed Rate Debt
| | | |
|
8,022,860
| |
82.9%
| |
5.66%
| |
5.8
|
| | | | | | | | | | | | |
|
|
Floating Rate Debt:
| | | | | | | | | | |
|
Secured - Conventional
| | | | |
251,305
| |
2.6%
| |
2.85%
| |
0.7
|
|
Secured - Tax Exempt
| | | | |
594,375
| |
6.2%
| |
0.32%
| |
19.1
|
|
Unsecured - Public/Private
| | | |
807,972
| |
8.3%
| |
1.68%
| |
1.1
|
|
Unsecured - Revolving Credit Facility
| |
|
-
| |
-
| |
-
| |
0.9
|
| | | | | | | | | | | | |
|
| |
Floating Rate Debt
| | | |
|
1,653,652
| |
17.1%
| |
1.38%
| |
7.2
|
| | | | | | | | | | | | |
|
|
Total
| | | | | |
$
|
9,676,512
| |
100.0%
| |
4.93%
| |
6.1
|
(1) Net of the effect of any derivative instruments. Weighted average
rates are for the quarter ended March 31, 2011.
Note: The Company capitalized interest of approximately $1.7 million and
$4.4 million during the quarters ended March 31, 2011 and 2010,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | |
| | |
| |
| |
| |
| |
| Debt Maturity Schedule as of March 31, 2011 |
|
(Amounts in thousands)
|
| | | | | | | | | | | | | |
|
| | | | | | | | | | | |
Weighted
| |
Weighted
|
| | | | | | | | | | | |
Average Rates
| |
Average
|
| |
Fixed
| | |
Floating
| | | | | | |
on Fixed
| |
Rates on
|
|
Year
| |
Rate (1)
| | |
Rate (1)
| | |
Total
| |
% of Total
| |
Rate Debt (1)
| |
Total Debt (1)
|
| | | | | | | | | | | | | |
|
|
2011
| |
$
|
694,503
|
(2)
| |
$
|
685,347
|
(3)
| |
$
|
1,379,850
| |
14.3%
| |
4.80%
| |
3.03%
|
|
2012
| | |
779,271
| | | |
37,676
| | | |
816,947
| |
8.4%
| |
5.62%
| |
5.55%
|
|
2013
| | |
269,502
| | | |
308,489
| | | |
577,991
| |
6.0%
| |
6.72%
| |
4.88%
|
|
2014
| | |
562,921
| | | |
22,007
| | | |
584,928
| |
6.0%
| |
5.31%
| |
5.24%
|
|
2015
| | |
358,051
| | | |
-
| | | |
358,051
| |
3.7%
| |
6.40%
| |
6.40%
|
|
2016
| | |
1,192,909
| | | |
-
| | | |
1,192,909
| |
12.3%
| |
5.35%
| |
5.35%
|
|
2017
| | |
1,355,833
| | | |
456
| | | |
1,356,289
| |
14.0%
| |
5.87%
| |
5.87%
|
|
2018
| | |
80,767
| | | |
44,677
| | | |
125,444
| |
1.3%
| |
5.72%
| |
4.26%
|
|
2019
| | |
801,759
| | | |
20,766
| | | |
822,525
| |
8.5%
| |
5.49%
| |
5.36%
|
2020
| | |
1,671,836
| | | |
809
| | | |
1,672,645
| |
17.3%
| |
5.50%
| |
5.50%
|
|
2021+
| |
|
255,508
| | |
|
533,425
| | |
|
788,933
| |
8.2%
| |
6.62%
| |
2.66%
|
| | | | | | | | | | | | | |
|
|
Total
| |
$
|
8,022,860
| | |
$
|
1,653,652
| | |
$
|
9,676,512
| |
100.0%
| |
5.60%
| |
4.91%
|
(1) Net of the effect of any derivative instruments. Weighted average
rates are as of March 31, 2011.
(2) Includes $482.5 million face value of 3.85% convertible unsecured
debt with a final maturity of 2026. The notes are callable by the
Company on or after August 18, 2011. The notes are putable by the
holders on August 18, 2011, August 15, 2016 and August 15, 2021.
(3) Effective April 5, 2011, the Company exercised the second of its two
one-year extension options for its $500.0 million term loan facility and
as a result, the maturity date is now October 5, 2012.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Residential |
Unsecured Debt Summary as of March 31, 2011 |
(Amounts in thousands)
|
|
| |
| |
| |
| |
| |
| |
| | | | | | | | | |
Unamortized
| | |
| |
Coupon
| |
Due
| | | |
Face
| |
Premium/
| |
Net
|
| |
Rate
| |
Date
| | | |
Amount
| |
(Discount)
| |
Balance
|
| | | | | | | | | | | |
|
| Fixed Rate Notes: | | | | | | | | | | | | |
| |
6.625
|
%
| |
03/15/12
| | | |
$
|
253,858
| | |
$
|
(183
|
)
| |
$
|
253,675
| |
| |
5.500
|
%
| |
10/01/12
| | | | |
222,133
| | | |
(329
|
)
| | |
221,804
| |
| |
5.200
|
%
| |
04/01/13
| |
(1
|
)
| | |
400,000
| | | |
(237
|
)
| | |
399,763
| |
|
Fair Value Derivative Adjustments
| | | | |
(1
|
)
| | |
(300,000
|
)
| | |
-
| | | |
(300,000
|
)
|
| |
5.250
|
%
| |
09/15/14
| | | | |
500,000
| | | |
(213
|
)
| | |
499,787
| |
| |
6.584
|
%
| |
04/13/15
| | | | |
300,000
| | | |
(441
|
)
| | |
299,559
| |
| |
5.125
|
%
| |
03/15/16
| | | | |
500,000
| | | |
(264
|
)
| | |
499,736
| |
| |
5.375
|
%
| |
08/01/16
| | | | |
400,000
| | | |
(989
|
)
| | |
399,011
| |
| |
5.750
|
%
| |
06/15/17
| | | | |
650,000
| | | |
(3,179
|
)
| | |
646,821
| |
| |
7.125
|
%
| |
10/15/17
| | | | |
150,000
| | | |
(424
|
)
| | |
149,576
| |
| |
4.750
|
%
| |
07/15/20
| | | | |
600,000
| | | |
(4,235
|
)
| | |
595,765
| |
| |
7.570
|
%
| |
08/15/26
| | | | |
140,000
| | | |
-
| | | |
140,000
| |
| |
3.850
|
%
| |
08/15/26
| |
(2
|
)
| |
|
482,545
|
| |
|
(3,047
|
)
| |
|
479,498
|
|
| | | | | | | | | | | |
|
| | | | | | | |
|
4,298,536
|
| |
|
(13,541
|
)
| |
|
4,284,995
|
|
| | | | | | | | | | | |
|
| Floating Rate Notes: | | | | | | | | | | | | |
| | | |
04/01/13
| |
(1
|
)
| | |
300,000
| | | |
-
| | | |
300,000
| |
|
Fair Value Derivative Adjustments
| | | | |
(1
|
)
| | |
7,972
| | | |
-
| | | |
7,972
| |
|
Term Loan Facility
| |
LIBOR+0.50%
| |
10/05/11
| |
(3
|
)(4)
| |
|
500,000
|
| |
|
-
|
| |
|
500,000
|
|
| | | | | | | | | | | |
|
| | | | | | | |
|
807,972
|
| |
|
-
|
| |
|
807,972
|
|
| | | | | | | | | | | |
|
| Revolving Credit Facility: | |
LIBOR+0.50%
| |
02/28/12
| |
(3
|
)(5)
| |
|
-
|
| |
|
-
|
| |
|
-
|
|
| | | | | | | | | | | |
|
| Total Unsecured Debt | | | | | | | |
$
|
5,106,508
|
| |
$
|
(13,541
|
)
| |
$
|
5,092,967
|
|
(1) Fair value interest rate swaps convert $300.0 million of the 5.200%
notes due April 1, 2013 to a floating interest rate.
(2) Convertible notes mature on August 15, 2026. The notes are callable
by the Company on or after August 18, 2011. The notes are putable by the
holders on August 18, 2011, August 15, 2016 and August 15, 2021.
(3) Facilities are private. All other unsecured debt is public.
(4) Effective April 5, 2011, the Company exercised the second of its two
one-year extension options for its $500.0 million term loan facility and
as a result, the maturity date is now October 5, 2012.
(5) As of March 31, 2011, there was approximately $1.34 billion
available on the Company's unsecured revolving credit facility.
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
|
|
|
|
| |
| | |
| |
| |
| Selected Unsecured Public Debt Covenants | | | | | | | |
| | | | | | | | | | |
|
| | | | | | | | |
March 31,
| |
December 31,
|
| | | | | | | | |
2011
| |
2010
|
| | | | | | | | | | |
|
|
Total Debt to Adjusted Total Assets (not to exceed 60%)
| |
47.3%
| |
48.5%
|
| | | | | | | | | | |
|
|
Secured Debt to Adjusted Total Assets (not to exceed 40%)
| |
22.4%
| |
23.2%
|
| | | | | | | | | | |
|
|
Consolidated Income Available for Debt Service to
| | | | | |
| |
Maximum Annual Service Charges
| | | | | |
| |
(must be at least 1.5 to 1)
| | | | |
2.56
| |
2.46
|
| | | | | | | | | | |
|
|
Total Unsecured Assets to Unsecured Debt
| | |
263.3%
| |
256.0%
|
| |
(must be at least 150%)
| | | | | | | |
These selected covenants relate to ERP Operating Limited Partnership's
("ERPOP") outstanding unsecured public debt. Equity Residential is the
general partner of ERPOP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
|
|
|
| | | |
| |
| |
| |
| |
| |
| |
| Capital Structure as of March 31, 2011 |
|
(Amounts in thousands except for share/unit and per share amounts)
|
| | | | | | | | | | | | | | | | |
|
| | |
Secured Debt
| | | | | | | | |
$
|
4,583,545
| |
47.4
|
%
| | |
| | |
Unsecured Debt
| | | | | | | |
|
5,092,967
| |
52.6
|
%
| | |
| | | | | | | | | | | | | | | | |
|
| | Total Debt | | | | | | | | | | | 9,676,512 | | 100.0 | % | | 35.5 | % |
| | | | | | | | | | | | | | | | |
|
| | |
Common Shares (includes Restricted Shares)
| | |
294,522,273
| |
95.5
|
%
| | | | | | |
| | |
Units (includes OP Units and LTIP Units)
| |
|
13,749,066
| |
4.5
|
%
| | | | | | |
| | | | | | | | | | | | | | | | |
|
| |
Total Shares and Units
| | | | |
308,271,339
| |
100.0
|
%
| | | | | | |
| |
Common Share Price at March 31, 2011
| |
$
|
56.41
| | | | | | | | |
| | | | | | | | | | | | | |
17,389,586
| |
98.9
|
%
| | |
| |
Perpetual Preferred Equity (see below)
| | | | | |
|
200,000
| |
1.1
|
%
| | |
| | | | | | | | | | | | | | | | |
|
| | Total Equity | | | | | | | | | | | 17,589,586 | | 100.0 | % | | 64.5 | % |
| | | | | | | | | | | | | | | | |
|
| | Total Market Capitalization | | | | | | | | $ | 27,266,098 | | | | 100.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
| |
| |
| |
| Perpetual Preferred Equity as of March 31, 2011 |
|
(Amounts in thousands except for share and per share amounts)
|
|
| | | |
| | | | | | | | | | | |
| | | | | | | | | | |
Annual
| |
Annual
| |
Weighted
|
| | | | |
Redemption
| |
Outstanding
| |
Liquidation
| |
Dividend
| |
Dividend
| |
Average
|
|
Series
|
|
| |
Date
| |
Shares
| |
Value
| |
Per Share
| |
Amount
| |
Rate
|
| | | | | | | | | | | | | | |
|
|
Preferred Shares:
| | | | | | | | | | | | | |
|
8.29% Series K
| |
12/10/26
| |
1,000,000
| |
$
|
50,000
| |
$
|
4.145
| |
$
|
4,145
| | |
|
6.48% Series N
| |
6/19/08
| |
600,000
| |
|
150,000
| | |
16.20
| |
|
9,720
| | |
| | | | | | | | | | | | | | |
|
|
Total Perpetual Preferred Equity
| | | |
1,600,000
| |
$
|
200,000
| | | |
$
|
13,865
| |
6.93
|
%
|
| | | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
| Common Share and Unit |
| Weighted Average Amounts Outstanding |
|
| |
| |
| | | |
| |
| |
| | | | | | | | | | |
|
| | | | | | | | |
Q111
| |
Q110
|
| | | | | | | | | | |
|
| Weighted Average Amounts Outstanding for Net Income Purposes: | | | | |
|
Common Shares - basic
| | | | | |
292,895,122
| |
280,644,744
|
|
Shares issuable from assumed conversion/vesting of (1):
| | | | |
| | |
- OP Units
| | | | | |
13,353,331
| |
-
|
| | |
- long-term compensation award shares/units
| |
4,218,062
| |
-
|
| | | | | | | | | | |
|
|
Total Common Shares and Units - diluted (1)
| |
310,466,515
| |
280,644,744
|
| | | | | | | | | | |
|
| Weighted Average Amounts Outstanding for FFO and Normalized | | | | |
| FFO Purposes: | | | | | | | | | | |
|
Common Shares - basic
| | | | | |
292,895,122
| |
280,644,744
|
|
OP Units - basic
| | | | | |
13,353,331
| |
13,804,885
|
| | | | | | | | | | |
|
|
Total Common Shares and OP Units - basic
| |
306,248,453
| |
294,449,629
|
|
Shares issuable from assumed conversion/vesting of:
| | | | |
| | |
- convertible preferred shares/units
| |
-
| |
397,611
|
| | |
- long-term compensation award shares/units
| |
4,218,062
| |
2,438,875
|
| | | | | | | | | | |
|
|
Total Common Shares and Units - diluted
| |
310,466,515
| |
297,286,115
|
| | | | | | | | | | |
|
| Period Ending Amounts Outstanding: | | | | | | |
|
Common Shares (includes Restricted Shares)
| |
294,522,273
| |
282,404,498
|
|
Units (includes OP Units and LTIP Units)
| | |
13,749,066
| |
14,070,786
|
| | | | | | | | | | |
|
|
Total Shares and Units
| | | | | |
308,271,339
| |
296,475,284
|
(1) Potential common shares issuable from the assumed conversion of OP
Units and the exercise/vesting of long-term compensation award
shares/units are automatically anti-dilutive and therefore excluded from
the diluted earnings per share calculation as the Company had a loss
from continuing operations for the first quarter ended March 31, 2010.
|
|
| Equity Residential |
| Partially Owned Entities as of March 31, 2011 |
|
(Amounts in thousands except for project and apartment unit amounts)
|
|
|
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | |
|
| | | |
Consolidated
|
| | | |
Development Projects
| | | | |
| | | |
Held for
| | | | | | | | |
| | | |
and/or Under
| |
Completed, Not
| |
Completed
| | | | |
| | | |
Development
| |
Stabilized (4)
| |
and Stabilized
| |
Other
| |
Total
|
| | | | | | | | | | | |
|
|
Total projects (1)
| |
|
-
|
| |
|
1
|
| |
|
3
|
| |
|
19
|
| |
|
23
|
|
| | | | | | | | | | | |
|
|
Total apartment units (1)
| |
|
-
|
| |
|
490
|
| |
|
898
|
| |
|
3,440
|
| |
|
4,828
|
|
| | | | | | | | | | | |
|
|
Operating information for the quarter ended 3/31/11 (at 100%):
| | | | | | | | | | |
|
Operating revenue
| |
$
|
-
| | |
$
|
2,992
| | |
$
|
4,680
| | |
$
|
13,949
| | |
$
|
21,621
| |
|
Operating expenses
| |
|
161
|
| |
|
1,093
|
| |
|
1,507
|
| |
|
4,733
|
| |
|
7,494
|
|
| | | | | | | | | | | |
|
|
Net operating (loss) income
| | |
(161
|
)
| | |
1,899
| | | |
3,173
| | | |
9,216
| | | |
14,127
| |
|
Depreciation
| | |
-
| | | |
1,897
| | | |
2,189
| | | |
3,741
| | | |
7,827
| |
|
General and administrative/other
| |
|
19
|
| |
|
2
|
| |
|
9
|
| |
|
11
|
| |
|
41
|
|
| | | | | | | | | | | |
|
|
Operating (loss) income
| | |
(180
|
)
| | |
-
| | | |
975
| | | |
5,464
| | | |
6,259
| |
|
Interest and other income
| | |
4
| | | |
-
| | | |
2
| | | |
5
| | | |
11
| |
|
Other expenses
| | |
(124
|
)
| | |
-
| | | |
-
| | | |
(17
|
)
| | |
(141
|
)
|
|
Interest:
| | | | | | | | | | |
| |
Expense incurred, net
| | |
(234
|
)
| | |
(1,528
|
)
| | |
(1,389
|
)
| | |
(3,882
|
)
| | |
(7,033
|
)
|
| |
Amortization of deferred financing costs
| |
|
-
|
| |
|
(601
|
)
| |
|
(139
|
)
| |
|
(102
|
)
| |
|
(842
|
)
|
| | | | | | | | | | | |
|
|
(Loss) income before income and other taxes
| | | | | | | | | | |
| |
and discontinued operations
| | |
(534
|
)
| | |
(2,129
|
)
| | |
(551
|
)
| | |
1,468
| | | |
(1,746
|
)
|
|
Income and other tax (expense) benefit
| | |
(45
|
)
| | |
-
| | | |
-
| | | |
(2
|
)
| | |
(47
|
)
|
|
Net gain on sales of discontinued operations
| |
|
169
|
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
169
|
|
| | | | | | | | | | | |
|
|
Net (loss) income
| |
$
|
(410
|
)
| |
$
|
(2,129
|
)
| |
$
|
(551
|
)
| |
$
|
1,466
|
| |
$
|
(1,624
|
)
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
|
Debt - Secured (2):
| | | | | | | | | | |
| |
EQR Ownership (3)
| |
$
|
18,342
| | |
$
|
142,448
| | |
$
|
200,765
| | |
$
|
162,912
| | |
$
|
524,467
| |
| |
Noncontrolling Ownership
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
52,719
|
| |
|
52,719
|
|
| | | | | | | | | | | |
|
|
Total (at 100%)
| |
$
|
18,342
|
| |
$
|
142,448
|
| |
$
|
200,765
|
| |
$
|
215,631
|
| |
$
|
577,186
|
|
(1) Project and apartment unit counts exclude all uncompleted
development projects until those projects are substantially completed.
(2) All debt is non-recourse to the Company with the exception of $14.0
million in mortgage debt on one development project.
(3) Represents the Company's current economic ownership interest.
(4) Projects included here are substantially complete. However, they may
still require additional exterior and interior work for all apartment
units to be available for leasing.
Note: In 2010, the Company admitted an 80% institutional partner to an
entity owning a developable land parcel in Florida in exchange for $11.7
million in cash and retained a 20% equity interest. This land parcel is
now unconsolidated. Total project cost is approximately $76.1 million
and construction is expected to start in the second quarter of 2011. The
Company is responsible for constructing the project and has given
certain construction cost overrun guarantees. The Company's remaining
funding obligation is currently estimated at approximately $2.3 million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
| Consolidated Development and Lease-Up Projects as of March 31,
2011 |
|
(Amounts in thousands except for project and apartment unit amounts)
|
|
| | |
| |
| |
| |
| |
| | | |
| |
| |
| |
| |
| |
| | | | | | | | | | | |
Total Book
| | | | | | | | | | | | |
| | | | | |
No. of
| |
Total
| |
Total
| |
Value Not
| | | | | | | | | |
Estimated
| |
Estimated
|
| | | | | |
Apartment
| |
Capital
| |
Book Value
| |
Placed in
| |
Total
| |
Percentage
| |
Percentage
| |
Percentage
| |
Completion
| |
Stabilization
|
|
Projects
|
| |
Location
| |
Units
| |
Cost (1)
| |
to Date
| |
Service
| |
Debt
| |
Completed
| |
Leased
| |
Occupied
| |
Date
| |
Date
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Projects Under Development - Wholly Owned: | | | | | | | | | | | | | | | | | | | | | |
|
500 West 23rd Street (formerly 10 Chelsea) (2)
| |
New York, NY
| |
111
| |
$
|
55,555
| |
$
|
34,783
| |
$
|
34,783
| |
$
|
-
| | |
52
|
%
| | |
-
| | |
-
| | |
Q4 2011
| |
Q4 2012
|
|
Savoy III
| | |
Aurora, CO
| |
168
| | |
23,856
| | |
8,051
| | |
8,051
| | |
-
| | |
27
|
%
| | |
-
| | |
-
| | |
Q3 2012
| |
Q2 2013
|
|
2201 Pershing Drive
| | |
Arlington, VA
| |
188
| | |
64,242
| | |
16,436
| | |
16,436
| | |
-
| | |
4
|
%
| | |
-
| | |
-
| | |
Q3 2012
| |
Q3 2013
|
|
Chinatown Gateway
| | |
Los Angeles, CA
| |
280
| |
|
92,920
| |
|
28,392
| |
|
28,392
| |
|
-
| | |
1
|
%
| | |
-
| | |
-
| | |
Q3 2013
| |
Q2 2015
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Projects Under Development - Wholly Owned
| | |
747
| | |
236,573
| | |
87,662
| | |
87,662
| | |
-
| | | | | | | | | | |
| | | | | |
| |
| |
| |
| |
| | | | | | | | | | |
| Projects Under Development | | | | | 747 | |
| 236,573 | |
| 87,662 | |
| 87,662 | |
| - | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Completed Not Stabilized - Wholly Owned (3): | | | | | | | | | | | | | | | | | | | | | |
|
Red 160 (formerly Redmond Way)
| | |
Redmond, WA
| |
250
| | |
84,382
| | |
79,480
| | |
-
| | |
-
| | | | |
95
|
%
| |
92
|
%
| |
Completed
| |
Q2 2011
|
|
Westgate
| | |
Pasadena, CA
| |
480
| | |
160,558
| | |
157,212
| | |
-
| | |
135,000
|
(4
|
)
| | |
93
|
%
| |
90
|
%
| |
Completed
| |
Q2 2011
|
|
425 Mass (5)
| | |
Washington, D.C.
| |
559
| | |
166,750
| | |
166,750
| | |
-
| | |
-
| | | | |
76
|
%
| |
71
|
%
| |
Completed
| |
Q4 2011
|
|
Vantage Pointe (5)
| | |
San Diego, CA
| |
679
| |
|
200,000
| |
|
200,000
| |
|
-
| |
|
-
| | | | |
56
|
%
| |
51
|
%
| |
Completed
| |
Q3 2012
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Projects Completed Not Stabilized - Wholly Owned
| | |
1,968
| | |
611,690
| | |
603,442
| | |
-
| | |
135,000
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Completed Not Stabilized - Partially Owned (3): | | | | | | | | | | | | | | | | | | | | | |
|
The Brooklyner (formerly 111 Lawrence Street)
| |
Brooklyn, NY
| |
490
| |
|
272,368
| |
|
257,462
| |
|
-
| |
|
142,448
| | | | |
99
|
%
| |
97
|
%
| |
Completed
| |
Q2 2011
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Projects Completed Not Stabilized - Partially Owned
| | |
490
| | |
272,368
| | |
257,462
| | |
-
| | |
142,448
| | | | | | | | | | |
| | | | | |
| |
| |
| |
| |
| | | | | | | | | | |
| Projects Completed Not Stabilized | | | | | 2,458 | |
| 884,058 | |
| 860,904 | |
| - | |
| 277,448 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Completed and Stabilized During the Quarter - Wholly Owned: | | | | | | | | | | | | | | | | | | | | |
|
Reunion at Redmond Ridge
| | |
Redmond, WA
| |
321
| |
|
53,175
| |
|
53,151
| |
|
-
| |
|
-
| | | | |
97
|
%
| |
94
|
%
| |
Completed
| |
Stabilized
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Projects Completed and Stabilized During the Quarter - Wholly Owned
| | |
321
| | |
53,175
| | |
53,151
| | |
-
| | |
-
| | | | | | | | | | |
| | | | | |
| |
| |
| |
| |
| | | | | | | | | | |
| Projects Completed and Stabilized During the Quarter | | | 321 | |
| 53,175 | |
| 53,151 | |
| - | |
| - | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Total Projects | | | | | 3,526 | | $ | 1,173,806 | | $ | 1,001,717 | | $ | 87,662 |
(6
|
)
| $ | 277,448 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Land Held for Development | | | | | N/A | |
| N/A | | $ | 211,968 | | $ | 211,968 | | $ | 18,342 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
Total Capital
| |
Q1 2011
| | | | | | |
| NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS | | | | | | | | | | | | |
Cost (1)
| |
NOI
| | | | | | |
|
Projects Under Development
| | | | | | | | | | | | | | |
$
|
236,573
| | |
$
|
22
| | | | | | | |
|
Completed Not Stabilized
| | | | | | | | | | | | | | | |
884,058
| | | |
5,921
| | | | | | | |
|
Completed and Stabilized During the Quarter
| | | | | | | | | | | | |
|
53,175
|
| |
|
532
|
| | | | | | |
|
Total Development NOI Contribution
| | | | | | | | | | | | | | |
$
|
1,173,806
|
| |
$
|
6,475
|
| | | | | | |
(1) Total capital cost represents estimated cost for projects under
development and/or developed and all capitalized costs incurred to date
plus any estimates of costs remaining to be funded for all projects, all
in accordance with GAAP.
(2) 500 West 23rd Street - The land under this development is subject to
a long term ground lease.
(3) Properties included here are substantially complete. However, they
may still require additional exterior and interior work for all
apartment units to be available for leasing.
(4) Debt is tax-exempt bonds with $12.7 million held in escrow by the
lender and released as draw requests are made. This escrowed amount is
classified as "Deposits – restricted" in the consolidated balance sheets
at 3/31/11.
(5) The Company acquired these completed development projects prior to
stabilization and has begun/continued lease-up activities.
(6) Total book value not placed in service excludes $9.5 million of
construction-in-progress related to the reconstruction of the Prospect
Towers garage.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
| Repairs and Maintenance Expenses and Capital Expenditures to Real
Estate |
| For the Quarter Ended March 31, 2011 |
|
(Amounts in thousands except for apartment unit and per apartment
unit amounts)
|
|
| | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | |
Repairs and Maintenance Expenses
| |
Capital Expenditures to Real Estate
| | | |
Total Expenditures
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | |
Total
| | | |
Avg. Per
| | | |
Avg. Per
| | | |
Avg. Per
| | | |
Avg. Per
| |
Building
| |
Avg. Per
| | | |
Avg. Per
| | | | | |
Avg. Per
|
| | | |
Apartment
| | |
Apartment
| | | |
Apartment
| | | |
Apartment
| |
Replacements
| |
Apartment
| |
Improvements
| |
Apartment
| | | |
Apartment
| | | |
Grand
| |
Apartment
|
| | | |
Units (1)
| |
Expense (2)
|
|
Unit
| |
Payroll (3)
| |
Unit
| |
Total
| |
Unit
| |
(4)
| |
Unit
| |
(5)
| |
Unit
| |
Total
| |
Unit
| | | |
Total
| |
Unit
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Same Store Properties (6)
| |
112,363
| |
$
|
23,501
| |
$
|
209
| |
$
|
22,658
| |
$
|
202
| |
$
|
46,159
| |
$
|
411
| |
$
|
16,503
| |
$
|
147
| |
$
|
10,329
| |
$
|
92
| |
$
|
26,832
| |
$
|
239
| |
(9)
| |
$
|
72,991
| |
$
|
650
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Non-Same Store Properties (7)
| |
10,543
| | |
2,302
| | |
227
| | |
2,381
| | |
235
| | |
4,683
| | |
462
| | |
1,054
| | |
104
| | |
1,743
| | |
172
| | |
2,797
| | |
276
| | | | |
7,480
| | |
738
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Other (8)
| | |
-
| |
|
390
| | | |
|
1,581
| | | |
|
1,971
| | | |
|
211
| | | |
|
51
| | | |
|
262
| | | | | |
|
2,233
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Total
| | |
122,906
| |
$
|
26,193
| | | |
$
|
26,620
| | | |
$
|
52,813
| | | |
$
|
17,768
| | | |
$
|
12,123
| | | |
$
|
29,891
| | | | | |
$
|
82,704
| | |
(1) Total Apartment Units - Excludes 4,805 military housing apartment
units for which repairs and maintenance expenses and capital
expenditures to real estate are self-funded and do not consolidate into
the Company's results.
(2) Repairs and Maintenance Expenses - Includes general maintenance
costs, apartment unit turnover costs including interior painting,
routine landscaping, security, exterminating, fire protection, snow
removal, elevator, roof and parking lot repairs and other miscellaneous
building repair costs.
(3) Maintenance Payroll - Includes payroll and related expenses for
maintenance staff.
(4) Replacements - Includes new expenditures inside the apartment units
such as appliances, mechanical equipment, fixtures and flooring,
including carpeting. Replacements for same store properties also include
$8.9 million spent in Q1 2011 on apartment unit renovations/rehabs
(primarily kitchens and baths) on 1,132 apartment units (equating to
about $7,900 per apartment unit rehabbed) designed to reposition these
assets for higher rental levels in their respective markets. In 2011,
the Company expects to spend approximately $41.0 million rehabbing 5,500
apartment units (equating to about $7,500 per apartment unit rehabbed).
(5) Building Improvements - Includes roof replacement, paving, amenities
and common areas, building mechanical equipment systems, exterior
painting and siding, major landscaping, vehicles and office and
maintenance equipment.
(6) Same Store Properties - Primarily includes all properties acquired
or completed and stabilized prior to January 1, 2010, less properties
subsequently sold.
(7) Non-Same Store Properties - Primarily includes all properties
acquired during 2010 and 2011, plus any properties in lease-up and not
stabilized as of January 1, 2010. Per apartment unit amounts are based
on a weighted average of 10,137 apartment units.
(8) Other - Primarily includes expenditures for properties sold during
the period.
(9) For 2011, the Company estimates that it will spend approximately
$1,200 per apartment unit of capital expenditures for its same store
properties inclusive of apartment unit renovation/rehab costs, or $850
per apartment unit excluding apartment unit renovation/rehab costs.
|
|
| Equity Residential |
| Discontinued Operations |
|
(Amounts in thousands)
|
|
| |
| |
| |
| | | | |
|
| | |
Quarter Ended
|
| | |
March 31,
|
| | |
2011
| |
2010
|
| | | | |
|
| REVENUES | | | | |
|
Rental income
| |
$
|
5,890
|
| |
$
|
25,969
|
|
| | | | |
|
|
Total revenues
| |
|
5,890
|
| |
|
25,969
|
|
| | | | |
|
| EXPENSES (1) | | | | |
|
Property and maintenance
| | |
2,709
| | | |
7,831
| |
|
Real estate taxes and insurance
| | |
477
| | | |
2,777
| |
|
Depreciation
| | |
1,395
| | | |
6,692
| |
|
General and administrative
| |
|
9
|
| |
|
3
|
|
| | | | |
|
|
Total expenses
| |
|
4,590
|
| |
|
17,303
|
|
| | | | |
|
|
Discontinued operating income
| | |
1,300
| | | |
8,666
| |
| | | | |
|
|
Interest and other income
| | |
44
| | | |
6
| |
|
Interest (2):
| | | | |
|
Expense incurred, net
| | |
326
| | | |
(1,208
|
)
|
|
Amortization of deferred financing costs
| | |
(51
|
)
| | |
(201
|
)
|
|
Income and other tax (expense) benefit
| |
|
(34
|
)
| |
|
(36
|
)
|
| | | | |
|
|
Discontinued operations
| | |
1,585
| | | |
7,227
| |
|
Net gain on sales of discontinued operations
| |
|
123,754
|
| |
|
60,036
|
|
| | | | |
|
|
Discontinued operations, net
| |
$
|
125,339
|
| |
$
|
67,263
|
|
(1) Includes expenses paid in the current period for properties sold or
held for sale in prior periods related to the Company’s period of
ownership.
(2) Includes only interest expense specific to secured mortgage notes
payable for properties sold and/or held for sale.
|
|
| Equity Residential |
| Normalized FFO Guidance Reconciliations and Non-Comparable Items |
|
(Amounts in thousands except per share data)
|
|
(All per share data is diluted)
|
|
|
|
| | |
| |
|
|
| |
| |
| | | | | | | | | | | |
|
| Normalized FFO Guidance Reconciliations |
| | | | | | | | | | | |
|
| | | | | | | | | |
Normalized
|
| | | | | | | | | |
FFO Reconciliations
|
| | | | | | | | | |
Guidance Q1 2011
|
| | | | | | | | | |
to Actual Q1 2011
|
| | | | | | | | | |
Amounts
| |
Per Share
|
| | | | | | | | | | | |
|
| |
Guidance Q1 2011 Normalized FFO - Diluted (2) (3)
| | | |
$ 171,074
| |
$ 0.551
|
| |
Property NOI
| | | | | |
3,702
| |
0.012
|
| |
Other
| | | | | | |
431
| |
0.001
|
| | | | | | | | | | | |
|
| |
Actual Q1 2011 Normalized FFO - Diluted (2) (3)
| | | | | |
$ 175,207
| |
$ 0.564
|
| | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | |
| |
| |
| |
| |
| |
| Non-Comparable Items – Adjustments from FFO to Normalized FFO (2)
(3) |
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| | | | | | | |
Quarter Ended March 31,
|
| | | | | | | |
|
2011
|
| |
|
2010
|
| |
Variance
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
|
Impairment
| | | | | | |
$
|
-
|
| |
$
|
-
|
| |
$
|
-
|
|
|
Asset impairment and valuation allowances
| | | |
|
-
|
| |
|
-
|
| |
|
-
|
|
| | | | | | | | | | | |
|
|
Property acquisition costs (other expenses)
| | | | |
481
| | | |
3,337
| | | |
(2,856
|
)
|
|
Write-off of pursuit costs (other expenses)
| | | |
|
1,683
|
| |
|
1,046
|
| |
|
637
|
|
|
Property acquisition costs and write-off of pursuit costs (other
expenses)
| |
|
2,164
|
| |
|
4,383
|
| |
|
(2,219
|
)
|
| | | | | | | | | | | |
|
|
Write-off of unamortized deferred financing costs (interest expense)
| | | | |
118
| | | |
927
| | | |
(809
|
)
|
|
Non-cash convertible debt discount (interest expense)
| | | |
|
1,945
|
| |
|
1,945
|
| |
|
-
|
|
|
Debt extinguishment (gains) losses, including prepayment penalties,
preferred
| | | | | | |
|
share redemptions and non-cash convertible debt discounts
| | | |
|
2,063
|
| |
|
2,872
|
| |
|
(809
|
)
|
| | | | | | | | | | | |
|
|
Net incremental (gain) loss on sales of condominium units
| | | | |
(395
|
)
| | |
(388
|
)
| | |
(7
|
)
|
|
Income and other tax expense (benefit) - Condo sales
| | | |
|
19
|
| |
|
21
|
| |
|
(2
|
)
|
|
(Gains) losses on sales of non-operating assets, net of income and
other
| | | | | | |
|
tax expense (benefit)
| | | | | |
|
(376
|
)
| |
|
(367
|
)
| |
|
(9
|
)
|
| | | | | | | | | | | |
|
|
Prospect Towers garage insurance proceeds (real estate taxes and
insurance)
| | |
(1,600
|
)
| | |
-
| | | |
(1,600
|
)
|
|
Insurance/litigation settlement proceeds (interest and other income)
| | | | |
-
| | | |
(2,000
|
)
| | |
2,000
| |
|
Forfeited deposits (interest and other income)
| | | |
|
(500
|
)
| |
|
-
|
| |
|
(500
|
)
|
|
Other miscellaneous non-comparable items
| | | |
|
(2,100
|
)
| |
|
(2,000
|
)
| |
|
(100
|
)
|
| | | | | | | |
| |
| |
|
|
Non-comparable items – Adjustments from FFO to Normalized FFO (2) (3)
| |
$
|
1,751
|
| |
$
|
4,888
|
| |
$
|
(3,137
|
)
|
Note: See page 24 for the definitions, the footnotes referenced above
and the reconciliations of EPS to FFO and Normalized FFO.
|
|
| Equity Residential |
| Normalized FFO Guidance and Assumptions |
|
|
| | | |
| |
| | | | | |
|
|
The guidance/projections provided below are based on current
expectations and are forward-looking. All guidance is given on a
Normalized FFO basis.
|
| | | | | |
|
| | | | | |
|
2011 Normalized FFO Guidance (per share
diluted) |
| | | | | |
|
| | | | Q2 2011 | | 2011 |
| | | | | |
|
|
Expected Normalized FFO (2) (3)
| |
$0.57 to $0.61
| |
$2.40 to $2.50
|
| | | | | |
|
| | | | | |
|
2011 Same Store Assumptions |
| | | | | |
|
|
Physical occupancy
| | | |
95.0%
|
|
Revenue change
| | | |
4.0% to 5.0%
|
|
Expense change
| | | |
1.0% to 2.0%
|
|
NOI change
| | | |
5.0% to 7.5%
|
| | | | | |
|
|
(Note: 25 basis point change in NOI percentage = $0.01 per share
change in EPS/FFO)
|
| | | | | |
|
2011 Transaction Assumptions |
| | | | | |
|
|
Consolidated rental acquisitions
| | | |
$1.0 billion
|
|
Consolidated rental dispositions
| | | |
$1.25 billion
|
|
Capitalization rate spread
| | | |
125 basis points
|
| | | | | |
|
| | | | | |
|
2011 Debt Assumptions (see Note) |
| | | | | |
|
|
Weighted average debt outstanding
| | | |
$9.6 billion to $9.8 billion
|
|
Weighted average interest rate (reduced for capitalized interest)
| |
4.90%
|
|
Interest expense
| | | |
$470.0 million to $480.0 million
|
| | | | | |
|
| | | | | |
|
2011 Other Guidance Assumptions (see Note) |
| | | | | |
|
|
General and administrative expense
| | | |
$40.0 million to $42.0 million
|
|
Interest and other income
| | | |
$2.0 million to $3.0 million
|
|
Income and other tax expense
| | | |
$0.5 million to $1.5 million
|
|
Weighted average Common Shares and Units - Diluted
| | |
312.6 million
|
| | |
|
| | |
|
Note: All guidance is given on a Normalized FFO basis. Therefore,
certain items excluded from Normalized FFO, such as debt extinguishment
costs/prepayment penalties and the write-off of pursuit and property
acquisition costs, are not included in the estimates provided on this
page. See page 24 for the definitions, the footnotes referenced above
and the reconciliations of EPS to FFO and Normalized FFO.
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
| Additional Reconciliations, Definitions and Footnotes |
|
(Amounts in thousands except per share data)
|
|
(All per share data is diluted)
|
|
| |
| |
| |
| |
| |
| | | | | | | | | |
|
|
The guidance/projections provided below are based on current
expectations and are forward-looking.
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| Reconciliations of EPS to FFO and Normalized FFO for Pages 5, 22
and 23 |
| | | | | | | | | |
|
| | | | | | | | | |
|
| | | | | | | |
Expected
| |
Expected
|
| | | |
Expected Q1 2011
| |
Q2 2011
| |
2011
|
| | | |
Amounts
| |
Per Share
| |
Per Share
| |
Per Share
|
| | | | | | | | | |
|
|
Expected Earnings - Diluted (5)
| | | |
$
|
100,247
| |
$
|
0.324
| |
$0.97 to $1.01
| |
$1.82 to $1.92
|
|
Add: Expected depreciation expense
| | | | |
170,084
| | |
0.548
| |
0.56
| |
2.23
|
|
Less: Expected net gain on sales (5)
| | | |
|
(103,170)
| |
|
(0.333)
| |
(0.97)
| |
(1.70)
|
| | | | | | | | | |
|
|
Expected FFO - Diluted (1) (3)
| | | | |
167,161
| | |
0.539
| |
0.56 to 0.60
| |
2.35 to 2.45
|
| | | | | | | | | |
|
|
Asset impairment and valuation allowances
| | | | |
-
| | |
-
| |
-
| |
-
|
|
Property acquisition costs and write-off of pursuit costs (other
expenses)
| | |
2,500
| | |
0.008
| |
0.01
| |
0.04
|
|
Debt extinguishment (gains) losses, including prepayment penalties,
preferred
| | | | | | | |
|
share redemptions and non-cash convertible debt discounts
| | |
2,043
| | |
0.006
| |
0.01
| |
0.03
|
|
(Gains) losses on sales of non-operating assets, net of income and
other
| | | | | | | |
|
tax expense (benefit)
| | | | |
(630)
| | |
(0.002)
| |
(0.01)
| |
(0.01)
|
|
Other miscellaneous non-comparable items
| | | |
|
-
| |
|
-
| |
-
| |
(0.01)
|
| | | | | | | | | |
|
|
Expected Normalized FFO - Diluted (2) (3)
| | | |
$
|
171,074
| |
$
|
0.551
| |
$0.57 to $0.61
| |
$2.40 to $2.50
|
Definitions and Footnotes for Pages 5, 22 and 23
(1) 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 ("GAAP")), excluding gains (or losses)
from sales of depreciable 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.
(2) Normalized funds from operations ("Normalized FFO") begins with FFO
and excludes:
-
the impact of any expenses relating to asset impairment and valuation
allowances;
-
property acquisition and other transaction costs related to mergers
and acquisitions and pursuit cost write-offs (other expenses);
-
gains and losses from early debt extinguishment, including prepayment
penalties, preferred share redemptions and the cost related to the
implied option value of non-cash convertible debt discounts;
-
gains and losses on the sales of non-operating assets, including gains
and losses from land parcel and condominium sales, net of the effect
of income tax benefits or expenses; and
-
other miscellaneous non-comparable items.
(3) The Company believes that FFO and FFO available to Common Shares and
Units are helpful to investors as supplemental measures of the operating
performance of a real estate company, because they are recognized
measures of performance by the real estate industry and by excluding
gains or losses related to dispositions of depreciable property and
excluding real estate depreciation (which can vary among owners of
identical assets in similar condition based on historical cost
accounting and useful life estimates), FFO and FFO available to Common
Shares and Units can help compare the operating performance of a
company's real estate between periods or as compared to different
companies. The company also believes that Normalized FFO and Normalized
FFO available to Common Shares and Units are helpful to investors as
supplemental measures of the operating performance of a real estate
company because they allow investors to compare the company's operating
performance to its performance in prior reporting periods and to the
operating performance of other real estate companies without the effect
of items that by their nature are not comparable from period to period
and tend to obscure the Company's actual operating results. FFO, FFO
available to Common Shares and Units, Normalized FFO and Normalized FFO
available to Common Shares and Units do not represent net income, net
income available to Common Shares or net cash flows from operating
activities in accordance with GAAP. Therefore, FFO, FFO available to
Common Shares and Units, Normalized FFO and Normalized FFO available to
Common Shares and Units should not be exclusively considered as
alternatives to net income, net income available to Common Shares or net
cash flows from operating activities as determined by GAAP or as a
measure of liquidity. The Company's calculation of FFO, FFO available to
Common Shares and Units, Normalized FFO and Normalized FFO available to
Common Shares and Units may differ from other real estate companies due
to, among other items, variations in cost capitalization policies for
capital expenditures and, accordingly, may not be comparable to such
other real estate companies.
(4) FFO available to Common Shares and Units and Normalized FFO
available to Common Shares and Units are calculated on a basis
consistent with net income available to Common Shares and reflects
adjustments to net income for preferred distributions and premiums on
redemption of preferred shares in accordance with accounting principles
generally accepted in the United States. The equity positions of various
individuals and entities that contributed their properties to the
Operating Partnership in exchange for OP Units are collectively referred
to as the "Noncontrolling Interests - Operating Partnership". Subject to
certain restrictions, the Noncontrolling Interests - Operating
Partnership may exchange their OP Units for EQR Common Shares on a
one-for-one basis.
(5) Earnings represents net income per share calculated in accordance
with accounting principles generally accepted in the United States.
Expected earnings is calculated on a basis consistent with actual
earnings. Due to the uncertain timing and extent of property
dispositions and the resulting gains/losses on sales, actual earnings
could differ materially from expected earnings.
| Same Store NOI Reconciliation for Page 9 |
|
| |
|
|
| |
| |
The following tables present reconciliations of operating income
per the consolidated statements
of operations to NOI for the
First Quarter 2011 Same Store Properties:
|
| | | | | | |
|
| | | | |
Quarter Ended March 31,
|
| | | | |
|
2011
|
| |
|
2010
|
|
| | | | | | |
|
|
Operating income
| | | |
$
|
133,510
| | |
$
|
110,008
| |
|
Adjustments:
| | | | | | |
|
Non-same store operating results
| | | | |
(32,347
|
)
| | |
(5,655
|
)
|
|
Fee and asset management revenue
| | | | |
(1,806
|
)
| | |
(2,422
|
)
|
|
Fee and asset management expense
| | | | |
948
| | | |
1,958
| |
|
Depreciation
| | | | |
167,968
| | | |
146,042
| |
|
General and administrative
| | | |
|
11,435
|
| |
|
10,721
|
|
| | | | | | |
|
|
Same store NOI
| | | |
$
|
279,708
|
| |
$
|
260,652
|
|
Source: Equity Residential
Contact:
Equity Residential
Marty McKenna, (312) 928-1901