Same Store Revenues Increase 5.1%; Same Store NOI Increases 6.3%
CHICAGO--(BUSINESS WIRE)--
Equity Residential (NYSE: EQR) today reported results for the quarter
ended March 31, 2013. All per share results are reported as available to
common shares on a diluted basis.
"The first quarter of 2013 was an historic period for Equity Residential
as we completed the $9 billion acquisition and successful integration of
nearly 22,000 apartment units across our core markets while selling more
than 18,000 non-core apartment units for nearly $3 billion," said David
J. Neithercut, Equity Residential's President and CEO. "I am extremely
proud of my colleagues across the enterprise for their efforts in
successfully completing our portfolio transformation while, at the same
time, producing same store revenue growth of 5.1%, which was in line
with our operating expectations for the quarter. We currently expect
operations for the full year to be consistent with our previous forecast
of 4% to 5% same store revenue growth and look forward to the years
ahead of owning and operating the finest portfolio of multifamily assets
in the best markets for long-term growth.”
First Quarter 2013
FFO (Funds from Operations), as defined by the National Association of
Real Estate Investment Trusts (NAREIT), for the first quarter of 2013
was $0.22 per share compared to $0.60 per share in the first quarter of
2012. The difference is due primarily to the approximately $65.1 million
of merger-related expenses and approximately $71.4 million of prepayment
penalties the company incurred in the first quarter of 2013 in
connection with its acquisition of Archstone. These prepayment penalties
had originally been budgeted to occur in the second quarter of 2013.
For the first quarter of 2013, the company reported Normalized FFO of
$0.64 per share compared to $0.61 per share in the same period of 2012.
The difference is due primarily to:
-
the positive impact of approximately $0.05 per share from higher same
store net operating income (NOI);
-
the positive impact of approximately $0.10 per share from the
stabilized Archstone properties;
-
the negative impact of approximately $0.04 per share from 2012 and
2013 transaction activity other than Archstone;
-
the negative impact of approximately $0.07 per share from the
company’s issuance of common shares in connection with its purchase of
Archstone; and
-
the negative impact of approximately $0.01 per share from other items.
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. Merger expenses and
prepayment penalties are not included in the company’s Normalized FFO. A
reconciliation and definition of Normalized FFO are provided on pages 24
and 27 of this release and the company has included guidance for
Normalized FFO on page 25 of this release.
For the first quarter of 2013, the company reported earnings of $3.01
per share compared to $0.47 per share in the first quarter of 2012. The
difference is due primarily to approximately $1.07 billion in increased
gains on property sales between periods as a direct result of the
company’s portfolio transformation process as well as the items listed
above.
Same Store Results
On a same store first quarter to first quarter comparison, which
includes 90,350 apartment units, revenues increased 5.1%, expenses
increased 2.9% and NOI increased 6.3%.
Archstone
As previously disclosed, on February 27, 2013, the company completed the
$9 billion acquisition of approximately 60% of the assets and
liabilities of Archstone, which consisted of approximately 22,000 high
quality apartment units located primarily in Boston, New York,
Washington, D.C., Seattle, San Francisco and Southern California as well
as fourteen land sites for future development. Six of these sites are
located in the company’s core markets and will be held for future
development. The remaining eight sites will likely be sold. A full list
of the names, locations, number of apartment units and average rental
rates of the properties acquired are available in the company’s Form 8-K
filed on February 28, 2013 with the SEC.
Equity Residential paid its portion of the transaction consideration
with $2.016 billion in cash and the issuance of 34,468,085 common shares
to the seller of the Archstone assets, an affiliate of Lehman Brothers
Holdings Inc. In addition, a total of $2.0 billion of Archstone secured
mortgage principal was paid off in conjunction with the closing. The
company’s cash needs at closing were financed through a combination of
approximately $575.0 million of cash on hand, approximately $1.6 billion
of available borrowings under the company’s revolving credit facility,
approximately $1.1 billion of proceeds from the disposition of non-core
assets and approximately $750.0 million of bank term debt.
In addition, the company has assumed approximately $2.9 billion of
consolidated secured debt, including $2.2 billion of Fannie Mae secured
debt. A detailed schedule of the debt assumed is available in the
company’s Form 8-K filed on February 28, 2013 with the SEC.
Acquisitions/Dispositions
The company acquired no operating properties other than the Archstone
assets during the first quarter of 2013. Since the end of the first
quarter, the company has acquired one property in Redmond, Washington,
consisting of 322 apartment units, for a purchase price of $91.5 million
and a capitalization (cap) rate of 4.7%.
During the quarter, the company sold 63 consolidated properties,
consisting of 18,452 apartment units, for an aggregate sale price of
$2.98 billion at a weighted average cap rate of 6.0%. These sales,
excluding one Archstone asset that was sold shortly after its
acquisition, generated an unlevered internal rate of return (IRR),
inclusive of management costs, of 9.4%.
The company sold properties in the following markets:
|
| |
| |
| |
Market | | Properties | | Units | | Sale Price (millions) |
| Washington, D.C. | |
10
| |
3,453
| | $843.9 |
| Phoenix | |
13
| |
3,592
| |
434.1
|
| Orlando | |
10
| |
2,574
| |
290.6
|
| Southern California | |
3
| |
1,056
| |
270.8
|
| Atlanta | |
7
| |
1,982
| |
241.7
|
| South Florida | |
4
| |
1,616
| |
240.1
|
|
Northern California
| |
3
| |
711
| |
188.5
|
| Denver | |
5
| |
1,211
| |
180.5
|
| Jacksonville | |
5
| |
1,637
| |
162.4
|
| Northern New Jersey | |
2
| |
360
| |
99.2
|
| Seattle | |
1
| |
260
| |
23.4
|
| |
63
| |
18,452
| | $2,975.2 |
| | | | | |
|
Since the end of the first quarter, the company has sold eight
properties consisting of 2,786 apartment units for an aggregate sales
price of approximately $374.4 million and one land parcel for $29.0
million.
Please see page eight of this release for comparative portfolio
summaries for the end of the fourth quarter 2012 and the end of the
first quarter 2013.
Financing Activities
On April 10, 2013, the company closed a $500 million unsecured note
offering maturing April 15, 2023 with a coupon of 3.0% and an all in
effective rate of approximately 4.0% including the effect of fees and
the termination of certain interest rate hedges. Proceeds from the
issuance are being used to repay outstanding amounts on the company's
revolving credit facility, termination costs on interest rate swaps,
secured debt and for other corporate purposes.
In order to manage debt maturities and the level of the company’s
secured indebtedness, the company prepaid in full on March 29, 2013$543.0 million of secured debt with an interest rate of 5.7%, which
would have matured January 1, 2017. In connection with this prepayment,
the company incurred, in the first quarter, a penalty of $70.3 million
that it previously anticipated incurring in the second quarter of 2013.
Second Quarter 2013 Guidance
The company has established a Normalized FFO guidance range of $0.67 to
$0.71 per share for the second quarter of 2013. The difference between
the company’s first quarter 2013 Normalized FFO of $0.64 per share and
the midpoint of the second quarter guidance range of $0.69 per share is
primarily due to:
-
the positive impact of approximately $0.04 per share from higher same
store NOI;
-
the positive impact of approximately $0.18 per share from the
Archstone stabilized properties;
-
the negative impact of approximately $0.11 per share from 2012 and
2013 transaction activity other than Archstone;
-
the negative impact of approximately $0.04 per share from the
company’s issuance of common shares in connection with its purchase of
Archstone; and
-
the negative impact of approximately $0.02 from higher interest
expense and other items.
About Equity Residential
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 416
properties located in 13 states and the District of Columbia, consisting
of 118,778 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, Wednesday, May 1, at 11:00 a.m.
Central.Please visit the Investor 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, |
| | 2013 | | 2012 |
| REVENUES | | | | |
|
Rental income
| |
$
|
537,002
| | |
$
|
444,384
| |
|
Fee and asset management
| |
|
2,160
|
| |
|
2,064
|
|
|
Total revenues
| |
|
539,162
|
| |
|
446,448
|
|
| | | |
|
| EXPENSES | | | | |
|
Property and maintenance
| | |
107,083
| | | |
92,952
| |
|
Real estate taxes and insurance
| | |
68,647
| | | |
52,440
| |
|
Property management
| | |
22,489
| | | |
23,339
| |
|
Fee and asset management
| | |
1,646
| | | |
1,307
| |
|
Depreciation
| | |
205,272
| | | |
148,246
| |
|
General and administrative
| |
|
16,496
|
| |
|
13,688
|
|
|
Total expenses
| |
|
421,633
|
| |
|
331,972
|
|
| | | |
|
|
Operating income
| | |
117,529
| | | |
114,476
| |
| | | |
|
|
Interest and other income
| | |
256
| | | |
169
| |
|
Other expenses
| | |
(2,564
|
)
| | |
(5,807
|
)
|
|
Merger expenses
| | |
(19,092
|
)
| | |
(1,149
|
)
|
|
Interest:
| | | | |
|
Expense incurred, net
| | |
(195,685
|
)
| | |
(118,011
|
)
|
|
Amortization of deferred financing costs
| |
|
(7,023
|
)
| |
|
(2,934
|
)
|
|
(Loss) before income and other taxes, (loss) from investments
| | | | | | | | |
|
in unconsolidated entities and discontinued operations
| | |
(106,579
|
)
| | |
(13,256
|
)
|
|
Income and other tax (expense) benefit
| | |
(407
|
)
| | |
(170
|
)
|
|
(Loss) from investments in unconsolidated entities due to operations
| | |
(355
|
)
| | |
—
| |
|
(Loss) from investments in unconsolidated entities due to merger
expenses
| |
|
(46,011
|
)
| |
|
—
|
|
|
(Loss) from continuing operations
| | |
(153,352
|
)
| | |
(13,426
|
)
|
|
Discontinued operations, net
| |
|
1,214,386
|
| |
|
165,593
|
|
|
Net income
| | |
1,061,034
| | | |
152,167
| |
|
Net (income) attributable to Noncontrolling Interests:
| | | | |
|
Operating Partnership
| | |
(43,323
|
)
| | |
(6,418
|
)
|
| Partially Owned Properties | |
|
(25
|
)
| |
|
(450
|
)
|
|
Net income attributable to controlling interests
| |
|
1,017,686
|
| |
|
145,299
|
|
|
Preferred distributions
| |
|
(1,036
|
)
| |
|
(3,466
|
)
|
|
Net income available to Common Shares
| |
$
|
1,016,650
|
| |
$
|
141,833
|
|
| | | |
|
| Earnings per share – basic: | | | | |
(Loss) from continuing operations available to Common Shares
| |
$
|
(0.44
|
)
| |
$
|
(0.06
|
)
|
|
Net income available to Common Shares
| |
$
|
3.01
|
| |
$
|
0.47
|
|
|
Weighted average Common Shares outstanding
| |
|
337,532
|
| |
|
298,805
|
|
| | | |
|
| Earnings per share – diluted: | | | | |
(Loss) from continuing operations available to Common Shares
| |
$
|
(0.44
|
)
| |
$
|
(0.06
|
)
|
|
Net income available to Common Shares
| |
$
|
3.01
|
| |
$
|
0.47
|
|
|
Weighted average Common Shares outstanding
| |
|
337,532
|
| |
|
298,805
|
|
| | | |
|
|
Distributions declared per Common Share outstanding
| |
$
|
0.40
|
| |
$
|
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, |
| | | 2013 | | 2012 |
|
Net income
| |
$
|
1,061,034
| | |
$
|
152,167
| |
|
Net (income) attributable to Noncontrolling Interests –
| | | | |
| Partially Owned Properties | | |
(25
|
)
| | |
(450
|
)
|
|
Preferred distributions
| |
|
(1,036
|
)
| |
|
(3,466
|
)
|
|
Net income available to Common Shares and Units
| | |
1,059,973
| | | |
148,251
| |
| | | | |
|
|
Adjustments:
| | | | |
|
Depreciation
| | |
205,272
| | | |
148,246
| |
|
Depreciation – Non-real estate additions
| | |
(1,216
|
)
| | |
(1,354
|
)
|
|
Depreciation – Partially Owned and Unconsolidated Properties | | |
(1,015
|
)
| | |
(800
|
)
|
|
Discontinued operations:
| | | | |
|
Depreciation
| | |
14,766
| | | |
26,862
| |
|
Net (gain) on sales of discontinued operations
| | |
(1,198,922
|
)
| | |
(132,956
|
)
|
|
Net incremental gain on sales of condominium units
| | |
—
| | | |
49
| |
|
Gain on sale of Equity Corporate Housing (ECH)
| |
|
250
|
| |
|
—
|
|
|
FFO available to Common Shares and Units (1) (3) (4)
| | |
79,108
| | | |
188,298
| |
| | | | |
|
|
Adjustments (see page 24 for additional detail):
| | | | |
|
Asset impairment and valuation allowances
| | |
—
| | | |
—
| |
|
Property acquisition costs and write-off of pursuit costs
| | |
67,668
| | | |
2,626
| |
|
Debt extinguishment (gains) losses, including prepayment penalties,
preferred share
| | | | |
|
redemptions and non-cash convertible debt discounts
| | |
79,643
| | | |
(41
|
)
|
|
(Gains) losses on sales of non-operating assets, net of income and
other tax expense
| | | | |
|
(benefit)
| | |
(250
|
)
| | |
(4
|
)
|
|
Other miscellaneous non-comparable items
| |
|
—
|
| |
|
974
|
|
|
Normalized FFO available to Common Shares and Units (2) (3) (4)
| |
$
|
226,169
|
| |
$
|
191,853
|
|
| | | | |
|
|
FFO (1) (3)
| |
$
|
80,144
| | |
$
|
191,764
| |
|
Preferred distributions
| | |
(1,036
|
)
| | |
(3,466
|
)
|
|
FFO available to Common Shares and Units - basic and diluted (1) (3)
(4)
| |
$
|
79,108
|
| |
$
|
188,298
|
|
|
FFO per share and Unit - basic
| |
$
|
0.23
|
| |
$
|
0.60
|
|
|
FFO per share and Unit - diluted
| |
$
|
0.22
|
| |
$
|
0.60
|
|
| | | | |
|
|
Normalized FFO (2) (3)
| |
$
|
227,205
| | |
$
|
195,319
| |
|
Preferred distributions
| |
|
(1,036
|
)
| |
|
(3,466
|
)
|
|
Normalized FFO available to Common Shares and Units - basic and
diluted (2) (3) (4)
| |
$
|
226,169
|
| |
$
|
191,853
|
|
|
Normalized FFO per share and Unit - basic
| |
$
|
0.64
|
| |
$
|
0.61
|
|
|
Normalized FFO per share and Unit - diluted
| |
$
|
0.64
|
| |
$
|
0.61
|
|
| | | | |
|
|
Weighted average Common Shares and Units outstanding - basic
| |
|
351,255
|
| |
|
312,011
|
|
|
Weighted average Common Shares and Units outstanding - diluted
| |
|
353,656
|
| |
|
315,230
|
|
|
| |
| Note: | | See page 24 for additional detail regarding the adjustments from
FFO to Normalized FFO. See page 27 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, |
| | 2013 | | 2012 |
| ASSETS | | | | |
|
Investment in real estate
| | | | |
|
Land
| |
$
|
6,319,353
| | |
$
|
4,554,912
| |
|
Depreciable property
| | |
19,966,235
| | | |
15,711,944
| |
|
Projects under development
| | |
500,829
| | | |
387,750
| |
|
Land held for development
| |
|
577,676
|
| |
|
353,823
|
|
|
Investment in real estate
| | |
27,364,093
| | | |
21,008,429
| |
|
Accumulated depreciation
| |
|
(4,434,775
|
)
| |
|
(4,912,221
|
)
|
|
Investment in real estate, net
| | |
22,929,318
| | | |
16,096,208
| |
|
Cash and cash equivalents
| | |
56,087
| | | |
612,590
| |
|
Investments in unconsolidated entities
| | |
193,338
| | | |
17,877
| |
|
Deposits – restricted
| | |
147,515
| | | |
250,442
| |
|
Escrow deposits – mortgage
| | |
39,535
| | | |
9,129
| |
|
Deferred financing costs, net
| | |
71,229
| | | |
44,382
| |
|
Other assets
| |
|
358,136
|
| |
|
170,372
|
|
| Total assets | | $ | 23,795,158 |
| | $ | 17,201,000 |
|
| | | |
|
| LIABILITIES AND EQUITY | | | | |
|
Liabilities:
| | | | |
|
Mortgage notes payable
| |
$
|
6,380,424
| | |
$
|
3,898,369
| |
|
Notes, net
| | |
5,379,890
| | | |
4,630,875
| |
|
Lines of credit
| | |
395,000
| | | |
—
| |
|
Accounts payable and accrued expenses
| | |
104,836
| | | |
38,372
| |
|
Accrued interest payable
| | |
88,518
| | | |
76,223
| |
|
Other liabilities
| | |
401,225
| | | |
304,518
| |
|
Security deposits
| | |
72,669
| | | |
66,988
| |
|
Distributions payable
| |
|
150,751
|
| |
|
260,176
|
|
| Total liabilities | |
| 12,973,313 |
| |
| 9,275,521 |
|
| | | |
|
| Commitments and contingencies | | | | |
| | | |
|
| Redeemable Noncontrolling Interests – Operating Partnership | |
| 386,757 |
| |
| 398,372 |
|
|
Equity:
| | | | |
|
Shareholders’ equity:
| | | | |
|
Preferred Shares of beneficial interest, $0.01 par value;
| | | | | | | | |
|
100,000,000 shares authorized; 1,000,000 shares issued and
| | | | | | | | |
|
outstanding as of March 31, 2013 and December 31, 2012 | | |
50,000
| | | |
50,000
| |
|
Common Shares of beneficial interest, $0.01 par value;
| | | | | | | | |
|
1,000,000,000 shares authorized; 360,063,675 shares issued and
| | | | | | | | |
|
outstanding as of March 31, 2013 and 325,054,654 shares
| | | | | | | | |
|
issued and outstanding as of December 31, 2012 | | |
3,601
| | | |
3,251
| |
|
Paid in capital
| | |
8,492,845
| | | |
6,542,355
| |
|
Retained earnings
| | |
1,759,990
| | | |
887,355
| |
|
Accumulated other comprehensive (loss)
| |
|
(182,508
|
)
| |
|
(193,148
|
)
|
|
Total shareholders’ equity
| | |
10,123,928
| | | |
7,289,813
| |
|
Noncontrolling Interests:
| | | | |
|
Operating Partnership
| | |
205,230
| | | |
159,606
| |
| Partially Owned Properties | |
|
105,930
|
| |
|
77,688
|
|
|
Total Noncontrolling Interests
| |
|
311,160
|
| |
|
237,294
|
|
| Total equity | |
| 10,435,088 |
| |
| 7,527,107 |
|
| Total liabilities and equity | | $ | 23,795,158 |
| | $ | 17,201,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
Portfolio Summary as of December 31, 2012 | |
Portfolio Summary as of March 31, 2013 |
| | | | | |
% of
| |
Average
| | | | | |
% of
| |
Average
|
| | | |
Apartment
| |
Stabilized
| |
Rental
| | | |
Apartment
| |
Stabilized
| |
Rental
|
|
Markets/Metro Areas
| |
Properties
| |
Units
| |
NOI (1)
| |
Rate (2)
| |
Properties
| |
Units
| |
NOI (1)
| |
Rate (2)
|
| | | | | | | | | | | | | | | |
|
| Core: | | | | | | | | | | | | | | | | |
| Washington DC | |
43
| |
14,425
| |
15.9%
| |
$
|
1,992
| |
58
| |
18,894
| |
19.3%
| |
$
|
2,181
|
| New York | |
30
| |
8,047
| |
13.9%
| | |
3,433
| |
38
| |
10,330
| |
16.5%
| | |
3,684
|
| San Francisco | |
40
| |
9,094
| |
8.6%
| | |
1,902
| |
50
| |
12,767
| |
11.4%
| | |
2,052
|
| Los Angeles | |
48
| |
9,815
| |
9.9%
| | |
1,879
| |
57
| |
11,960
| |
11.0%
| | |
1,998
|
| Boston | |
26
| |
5,832
| |
8.2%
| | |
2,560
| |
34
| |
7,816
| |
10.0%
| | |
2,787
|
| South Florida | |
36
| |
12,253
| |
9.0%
| | |
1,463
| |
33
| |
10,833
| |
6.8%
| | |
1,497
|
| Seattle | |
38
| |
7,563
| |
6.4%
| | |
1,627
| |
41
| |
8,227
| |
6.0%
| | |
1,646
|
| San Diego | |
14
| |
4,963
| |
5.0%
| | |
1,851
| |
15
| |
4,915
| |
4.2%
| | |
1,861
|
| Denver | |
24
| |
8,144
| |
5.5%
| | |
1,226
| |
19
| |
6,933
| |
4.1%
| | |
1,257
|
| Orange County, CA | |
11
| |
3,490
| |
3.3%
| |
|
1,660
| |
11
| |
3,490
| |
2.7%
| |
|
1,672
|
| Subtotal – Core | | 310 | | 83,626 | | 85.7% | | | 1,941 | | 356 | | 96,165 | | 92.0% | | | 2,126 |
| | | | | | | | | | | | | | | |
|
| Non-Core: | | | | | | | | | | | | | | | | |
|
Inland Empire, CA | |
10
| |
3,081
| |
2.4%
| | |
1,491
| |
10
| |
3,081
| |
2.1%
| | |
1,490
|
| Orlando | |
21
| |
6,413
| |
3.5%
| | |
1,086
| |
11
| |
3,839
| |
1.8%
| | |
1,104
|
| Phoenix | |
25
| |
7,400
| |
3.4%
| | |
946
| |
13
| |
4,072
| |
1.5%
| | |
930
|
| New England (excluding Boston)
| |
14
| |
2,611
| |
1.3%
| | |
1,174
| |
14
| |
2,611
| |
1.1%
| | |
1,197
|
| Atlanta | |
12
| |
3,616
| |
2.0%
| | |
1,157
| |
6
| |
1,970
| |
0.8%
| | |
1,214
|
| Tacoma, WA | |
3
| |
1,467
| |
0.6%
| | |
951
| |
3
| |
1,467
| |
0.5%
| | |
1,023
|
| Jacksonville | |
6
| |
2,117
| |
1.1%
| |
|
1,005
| |
1
| |
480
| |
0.2%
| |
|
1,080
|
| Subtotal – Non-Core | | 91 | | 26,705 | | 14.3% | |
| 1,099 | | 58 | | 17,520 | | 8.0% | |
| 1,150 |
| Total | | 401 | | 110,331 | | 100.0% | |
| 1,737 | | 414 | | 113,685 | | 100.0% | |
| 1,974 |
| | | | | | | | | | | | | | | |
|
| Military Housing | |
2
| |
5,039
| |
—
| |
|
—
| |
2
| |
5,093
| |
—
| |
|
—
|
| | | | | | | | | | | | | | | |
|
| Grand Total | | 403 | | 115,370 | | 100.0% | | $ | 1,737 | | 416 | | 118,778 | | 100.0% | | $ | 1,974 |
| | | | | | | | | | | | | | | |
|
|
Note: Projects under development are not included in the Portfolio
Summary until construction has been completed.
|
| | | | | | | | | | | | | | | |
|
(1) % of Stabilized NOI includes budgeted 2013 NOI for stabilized
properties, budgeted year one (March 2013 to February 2014) NOI
for the Archstone properties and projected annual NOI at
stabilization (defined as having achieved 90% occupancy for three
consecutive months) for properties that are in lease-up
|
| | | | | | | | | | | | | | | |
|
|
(2) Average rental rate is defined as total rental revenues divided
by the weighted average occupied apartment units for the last month
of the period presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
|
| |
| |
| |
| |
| |
| |
| Portfolio as of March 31, 2013 |
| | | | | | | | | | |
|
| | | | | | | | |
Apartment
| | |
| | | | | | |
Properties
| |
Units
| | |
| Wholly Owned Properties | | | |
390
| | | |
108,579
| | | |
| Master-Leased Properties - Consolidated
| | | |
3
| | | |
853
| | | |
| Partially Owned Properties - Consolidated
| | | |
20
| | | |
3,917
| | | |
| Partially Owned Properties - Unconsolidated
| | | |
1
| | | |
336
| | | |
Military Housing | | | |
2
|
| |
|
5,093
|
| | |
| | | | | | |
416
|
| |
|
118,778
|
| | |
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | |
|
| Portfolio Rollforward Q1 2013 |
|
($ in thousands)
|
| | | | | | | | | | |
|
| | | | | | |
Apartment
| |
Purchase/
| | |
| | | | |
Properties
| |
Units
| |
(Sale) Price
| |
Cap Rate
|
| | | 12/31/2012 | |
403
| | |
115,370
| | | | | |
|
Acquisitions:
| | | | | | | | | | |
|
Consolidated:
| | | | | | | | | | |
| Archstone Rental Properties | | | |
72
| | |
20,592
| | |
$
|
8,424,958
| | |
4.9
|
%
|
| Archstone Master-Leased Properties | | | |
3
| | |
853
| | |
$
|
255,969
| | |
5.5
|
%
|
|
Archstone Uncompleted Developments (two)
| | | |
—
| | |
—
| | |
$
|
36,583
| | | |
|
Archstone Land Parcels (thirteen)
| | | |
—
| | |
—
| | |
$
|
236,918
| | | |
|
Unconsolidated (1):
| | | | | | | | | | |
| Archstone Rental Properties | | | |
1
| | |
336
| | |
$
|
5,113
| | |
5.8
|
%
|
|
Archstone Uncompleted Developments (two)
| | | |
—
| | |
—
| | |
$
|
18,374
| | | |
|
Archstone Land Parcels (one)
| | | |
—
| | |
—
| | |
$
|
4,097
| | | |
|
Dispositions:
| | | | | | | | | | |
|
Consolidated:
| | | | | | | | | | |
| Rental Properties | | | |
(63
|
)
| |
(18,452
|
)
| |
$
|
(2,975,187
|
)
| |
6.0
|
%
|
|
Configuration Changes
| | | |
—
|
| |
79
|
| | | | |
| | | 3/31/2013 | |
416
|
| |
118,778
|
| | | | |
|
| |
|
(1)
| |
EQR owns various equity interests in these unconsolidated rental
properties, uncompleted developments and land parcels. Purchase
price listed is EQR's net investment price.
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
|
| |
| |
| |
| |
| |
| |
| First Quarter 2013 vs. First Quarter 2012 |
| Same Store Results/Statistics for 90,350 Same Store Apartment
Units |
|
$ in thousands (except for Average Rental Rate)
|
| | | | | | | | | | | |
|
| |
Results
| |
Statistics
|
| | | | | | | |
Average
| | | | |
| | | | | | | |
Rental
| | | | |
|
Description
| |
Revenues
| |
Expenses
| |
NOI (1)
| |
Rate (2)
| |
Occupancy
| |
Turnover
|
|
Q1 2013
| |
$
|
465,653
| | |
$
|
166,456
| | |
$
|
299,197
| | |
$
|
1,809
| | |
95.0
|
%
| |
12.3
|
%
|
|
Q1 2012
| |
$
|
443,152
|
| |
$
|
161,767
|
| |
$
|
281,385
|
| |
$
|
1,727
|
| |
94.7
|
%
| |
12.1
|
%
|
| | | | | | | | | | | |
|
|
Change
| |
$
|
22,501
|
| |
$
|
4,689
|
| |
$
|
17,812
|
| |
$
|
82
|
| |
0.3
|
%
| |
0.2
|
%
|
| | | | | | | | | | | |
|
|
Change
| | |
5.1
|
%
| | |
2.9
|
%
| | |
6.3
|
%
| | |
4.7
|
%
| | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | |
|
| First Quarter 2013 vs. Fourth Quarter 2012 |
| Same Store Results/Statistics for 92,454 Same Store Apartment
Units |
|
$ in thousands (except for Average Rental Rate)
|
| | | | | | | | | | | |
|
| |
Results
| |
Statistics
|
| | | | | | | |
Average
| | | | |
| | | | | | | |
Rental
| | | | |
|
Description
| |
Revenues
| |
Expenses
| |
NOI (1)
| |
Rate (2)
| |
Occupancy
| |
Turnover
|
|
Q1 2013
| |
$
|
483,357
| | |
$
|
172,678
| | |
$
|
310,679
| | |
$
|
1,836
| | |
95.0
|
%
| |
12.4
|
%
|
|
Q4 2012
| |
$
|
482,071
|
| |
$
|
161,404
|
| |
$
|
320,667
|
| |
$
|
1,826
|
| |
95.3
|
%
| |
12.7
|
%
|
| | | | | | | | | | | |
|
|
Change
| |
$
|
1,286
|
| |
$
|
11,274
|
| |
$
|
(9,988
|
)
| |
$
|
10
|
| |
(0.3
|
)%
| |
(0.3
|
)%
|
| | | | | | | | | | | |
|
|
Change
| | |
0.3
|
%
| | |
7.0
|
%
| | |
(3.1
|
)%
| | |
0.5
|
%
| | | | |
|
| |
|
(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 27 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 2013 vs. First Quarter 2012 |
| Same Store Results/Statistics by Market |
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | |
Increase (Decrease) from Prior Year's Quarter
|
| | | |
Q1 2013
| |
Q1 2013
| |
Q1 2013
| | | | | | | |
| | | |
% of
| |
Average
| |
Weighted
| | | | | | | |
Average
| | |
| |
Apartment
| |
Actual
| |
Rental
| |
Average
| | | | | | | |
Rental
| | |
|
Markets/Metro Areas
| |
Units
| |
NOI
| |
Rate (1)
| |
Occupancy %
| |
Revenues
| |
Expenses
| |
NOI
| |
Rate (1)
| |
Occupancy
|
| | | | | | | | | | | | | | | | | |
|
| Core: | | | | | | | | | | | | | | | | | | |
| Washington DC | |
11,184
| |
14.9
|
%
| |
$
|
2,047
| |
94.5
|
%
| |
3.6
|
%
| |
(0.2
|
)%
| |
5.4
|
%
| |
3.8
|
%
| |
(0.1
|
)%
|
| New York | |
7,176
| |
13.6
|
%
| | |
3,448
| |
95.3
|
%
| |
5.5
|
%
| |
5.9
|
%
| |
5.3
|
%
| |
5.6
|
%
| |
0.0
|
%
|
| Los Angeles | |
8,894
| |
10.6
|
%
| | |
1,888
| |
95.7
|
%
| |
4.7
|
%
| |
3.4
|
%
| |
5.3
|
%
| |
4.0
|
%
| |
0.6
|
%
|
| South Florida | |
10,637
| |
9.4
|
%
| | |
1,499
| |
95.2
|
%
| |
4.6
|
%
| |
1.5
|
%
| |
6.6
|
%
| |
4.5
|
%
| |
0.1
|
%
|
| Boston (2)
| |
5,832
| |
9.1
|
%
| | |
2,561
| |
94.3
|
%
| |
3.3
|
%
| |
8.2
|
%
| |
0.8
|
%
| |
3.5
|
%
| |
(0.2
|
)%
|
| San Francisco | |
7,822
| |
8.9
|
%
| | |
1,869
| |
94.7
|
%
| |
9.5
|
%
| |
2.2
|
%
| |
14.0
|
%
| |
8.6
|
%
| |
0.8
|
%
|
| Seattle | |
7,003
| |
7.2
|
%
| | |
1,640
| |
94.9
|
%
| |
6.2
|
%
| |
2.2
|
%
| |
8.4
|
%
| |
6.4
|
%
| |
(0.2
|
)%
|
| Denver | |
6,765
| |
5.8
|
%
| | |
1,253
| |
95.7
|
%
| |
8.6
|
%
| |
0.1
|
%
| |
12.4
|
%
| |
8.2
|
%
| |
0.3
|
%
|
| San Diego | |
4,627
| |
5.4
|
%
| | |
1,826
| |
93.7
|
%
| |
3.1
|
%
| |
2.1
|
%
| |
3.7
|
%
| |
2.9
|
%
| |
0.1
|
%
|
| Orange County, CA | |
3,490
| |
3.8
|
%
| |
|
1,664
| |
95.4
|
%
| |
4.6
|
%
| |
6.8
|
%
| |
3.6
|
%
| |
4.1
|
%
| |
0.3
|
%
|
| Subtotal – Core | |
73,430
| |
88.7
|
%
| | |
1,962
| |
95.0
|
%
| |
5.2
|
%
| |
3.3
|
%
| |
6.3
|
%
| |
5.0
|
%
| |
0.2
|
%
|
| | | | | | | | | | | | | | | | | |
|
| Non-Core: | | | | | | | | | | | | | | | | | | |
|
Inland Empire, CA | |
3,081
| |
3.0
|
%
| | |
1,485
| |
94.6
|
%
| |
2.9
|
%
| |
(1.7
|
)%
| |
5.1
|
%
| |
2.3
|
%
| |
0.6
|
%
|
| Orlando | |
3,839
| |
2.5
|
%
| | |
1,098
| |
95.9
|
%
| |
5.8
|
%
| |
(0.4
|
)%
| |
10.1
|
%
| |
5.0
|
%
| |
0.8
|
%
|
| Phoenix | |
3,808
| |
2.1
|
%
| | |
932
| |
95.7
|
%
| |
3.9
|
%
| |
(0.6
|
)%
| |
6.7
|
%
| |
2.9
|
%
| |
1.0
|
%
|
| New England (excluding Boston)
| |
2,611
| |
1.5
|
%
| | |
1,201
| |
94.5
|
%
| |
3.8
|
%
| |
8.0
|
%
| |
(0.2
|
)%
| |
3.2
|
%
| |
0.5
|
%
|
| Atlanta | |
1,634
| |
1.1
|
%
| | |
1,211
| |
95.6
|
%
| |
5.2
|
%
| |
(2.9
|
)%
| |
11.7
|
%
| |
5.7
|
%
| |
(0.5
|
)%
|
| Tacoma, WA | |
1,467
| |
0.8
|
%
| | |
1,003
| |
94.6
|
%
| |
3.3
|
%
| |
(1.1
|
)%
| |
7.5
|
%
| |
0.6
|
%
| |
2.5
|
%
|
| Jacksonville | |
480
| |
0.3
|
%
| |
|
1,080
| |
95.5
|
%
| |
3.0
|
%
| |
(11.5
|
)%
| |
13.0
|
%
| |
1.3
|
%
| |
1.4
|
%
|
| Subtotal – Non-Core | |
16,920
| |
11.3
|
%
| | |
1,149
| |
95.2
|
%
| |
4.1
|
%
| |
0.3
|
%
| |
6.7
|
%
| |
3.3
|
%
| |
0.8
|
%
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
|
Total
| |
90,350
| |
100.0
|
%
| |
$
|
1,809
| |
95.0
|
%
| |
5.1
|
%
| |
2.9
|
%
| |
6.3
|
%
| |
4.7
|
%
| |
0.3
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
|
|
(1) Average rental rate is defined as total rental revenues divided
by the weighted average occupied apartment units for the period.
|
| | | | | | | | | | | | | | | | | |
|
|
(2) Quarter over quarter same store revenues in Boston were
negatively impacted by garage related income. Residential-only
revenues increased in Boston 6.0% quarter over quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
| First Quarter 2013 vs. Fourth Quarter 2012 |
| Same Store Results/Statistics by Market |
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | |
Increase (Decrease) from Prior Quarter
|
| | | |
Q1 2013
| |
Q1 2013
| |
Q1 2013
| | | | | | | | |
| | | |
% of
| |
Average
| |
Weighted
| | | | | | | |
Average
| | |
| |
Apartment
| |
Actual
| |
Rental
| |
Average
| | | | | | | |
Rental
| | |
|
Markets/Metro Areas
| |
Units
| |
NOI
| |
Rate (1)
| |
Occupancy %
| |
Revenues
| |
Expenses
| |
NOI
| |
Rate (1)
| |
Occupancy
|
| | | | | | | | | | | | | | | | | |
|
| Core: | | | | | | | | | | | | | | | | | | |
| Washington DC | |
11,696
| |
15.3
|
%
| |
$
|
2,090
| |
94.4
|
%
| |
(0.4
|
)%
| |
6.5
|
%
| |
(3.3
|
)%
| |
0.5
|
%
| |
(1.0
|
)%
|
| New York | |
7,687
| |
14.5
|
%
| | |
3,546
| |
95.3
|
%
| |
1.0
|
%
| |
10.4
|
%
| |
(4.9
|
)%
| |
2.0
|
%
| |
(0.9
|
)%
|
| Los Angeles | |
9,095
| |
10.5
|
%
| | |
1,896
| |
95.7
|
%
| |
0.2
|
%
| |
7.0
|
%
| |
(3.0
|
)%
| |
0.4
|
%
| |
(0.1
|
)%
|
| San Francisco | |
8,383
| |
9.3
|
%
| | |
1,887
| |
94.5
|
%
| |
0.0
|
%
| |
6.0
|
%
| |
(3.0
|
)%
| |
0.4
|
%
| |
(0.3
|
)%
|
| South Florida | |
10,637
| |
9.1
|
%
| | |
1,499
| |
95.2
|
%
| |
1.0
|
%
| |
4.2
|
%
| |
(0.9
|
)%
| |
0.9
|
%
| |
0.1
|
%
|
| Boston (2)
| |
5,832
| |
8.8
|
%
| | |
2,561
| |
94.3
|
%
| |
(0.9
|
)%
| |
12.1
|
%
| |
(6.9
|
)%
| |
0.5
|
%
| |
(1.4
|
)%
|
| Seattle | |
7,322
| |
7.2
|
%
| | |
1,646
| |
94.9
|
%
| |
1.0
|
%
| |
8.6
|
%
| |
(2.6
|
)%
| |
1.0
|
%
| |
0.0
|
%
|
| Denver | |
6,765
| |
5.6
|
%
| | |
1,253
| |
95.7
|
%
| |
1.0
|
%
| |
2.3
|
%
| |
0.4
|
%
| |
0.6
|
%
| |
0.3
|
%
|
| San Diego | |
4,627
| |
5.2
|
%
| | |
1,826
| |
93.7
|
%
| |
(0.9
|
)%
| |
(1.3
|
)%
| |
(0.7
|
)%
| |
(0.4
|
)%
| |
(0.5
|
)%
|
| Orange County, CA | |
3,490
| |
3.6
|
%
| |
|
1,664
| |
95.4
|
%
| |
(0.4
|
)%
| |
6.9
|
%
| |
(3.5
|
)%
| |
0.1
|
%
| |
(0.5
|
)%
|
| Subtotal – Core | |
75,534
| |
89.1
|
%
| | |
1,991
| |
94.9
|
%
| |
0.2
|
%
| |
7.1
|
%
| |
(3.2
|
)%
| |
0.7
|
%
| |
(0.4
|
)%
|
| | | | | | | | | | | | | | | | | |
|
| Non-Core: | | | | | | | | | | | | | | | | | | |
|
Inland Empire, CA | |
3,081
| |
2.9
|
%
| | |
1,485
| |
94.6
|
%
| |
(0.6
|
)%
| |
0.7
|
%
| |
(1.2
|
)%
| |
(0.1
|
)%
| |
(0.4
|
)%
|
| Orlando | |
3,839
| |
2.4
|
%
| | |
1,098
| |
95.9
|
%
| |
1.7
|
%
| |
6.4
|
%
| |
(1.0
|
)%
| |
1.0
|
%
| |
0.7
|
%
|
| Phoenix | |
3,808
| |
2.1
|
%
| | |
932
| |
95.7
|
%
| |
1.1
|
%
| |
6.6
|
%
| |
(1.9
|
)%
| |
0.5
|
%
| |
0.6
|
%
|
| New England (excluding Boston)
| |
2,611
| |
1.4
|
%
| | |
1,201
| |
94.5
|
%
| |
0.0
|
%
| |
14.6
|
%
| |
(11.3
|
)%
| |
0.8
|
%
| |
(0.8
|
)%
|
| Atlanta | |
1,634
| |
1.1
|
%
| | |
1,211
| |
95.6
|
%
| |
(0.8
|
)%
| |
(0.1
|
)%
| |
(1.2
|
)%
| |
(0.9
|
)%
| |
0.1
|
%
|
| Tacoma, WA | |
1,467
| |
0.7
|
%
| | |
1,003
| |
94.6
|
%
| |
5.1
|
%
| |
6.0
|
%
| |
4.4
|
%
| |
2.1
|
%
| |
2.6
|
%
|
| Jacksonville | |
480
| |
0.3
|
%
| |
|
1,080
| |
95.5
|
%
| |
(0.5
|
)%
| |
2.7
|
%
| |
(2.2
|
)%
| |
(0.9
|
)%
| |
0.3
|
%
|
| Subtotal – Non-Core | |
16,920
| |
10.9
|
%
| | |
1,149
| |
95.2
|
%
| |
0.7
|
%
| |
6.0
|
%
| |
(2.4
|
)%
| |
0.4
|
%
| |
0.3
|
%
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
|
Total
| |
92,454
| |
100.0
|
%
| |
$
|
1,836
| |
95.0
|
%
| |
0.3
|
%
| |
7.0
|
%
| |
(3.1
|
)%
| |
0.5
|
%
| |
(0.3
|
)%
|
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
|
(1) Average rental rate is defined as total rental revenues divided
by the weighted average occupied apartment units for the period.
|
| | | | | | | | | | | | | | | | | |
|
|
(2) Sequential same store revenues in Boston were positively
impacted by garage related income. Residential-only revenues
decreased in Boston 1.3% sequentially.
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
|
| |
| |
| |
| |
| |
| First Quarter 2013 vs. First Quarter 2012 |
| Same Store Operating Expenses for 90,350 Same Store Apartment
Units |
|
$ in thousands
|
| | | | | | | | | |
|
| | | | | | | | | |
% of Actual
|
| | | | | | | | | |
Q1 2013
|
| |
Actual
| |
Actual
| |
$
| |
%
| |
Operating
|
| |
Q1 2013
| |
Q1 2012
| |
Change
| |
Change
| |
Expenses
|
| | | | | | | | | |
|
|
Real estate taxes
| |
$
|
52,501
| |
$
|
49,301
| |
$
|
3,200
| | |
6.5
|
%
| |
31.5
|
%
|
|
On-site payroll (1)
| | |
35,987
| | |
36,202
| | |
(215
|
)
| |
(0.6
|
)%
| |
21.6
|
%
|
|
Utilities (2)
| | |
26,745
| | |
25,534
| | |
1,211
| | |
4.7
|
%
| |
16.1
|
%
|
|
Repairs and maintenance (3)
| | |
21,871
| | |
20,843
| | |
1,028
| | |
4.9
|
%
| |
13.1
|
%
|
|
Property management costs (4)
| | |
15,832
| | |
16,618
| | |
(786
|
)
| |
(4.7
|
)%
| |
9.5
|
%
|
|
Insurance
| | |
5,583
| | |
4,971
| | |
612
| | |
12.3
|
%
| |
3.4
|
%
|
|
Leasing and advertising
| | |
2,522
| | |
2,404
| | |
118
| | |
4.9
|
%
| |
1.5
|
%
|
|
Other on-site operating expenses (5)
| |
|
5,415
| |
|
5,894
| |
|
(479
|
)
| |
(8.1
|
)%
| |
3.3
|
%
|
| | | | | | | | | |
|
|
Same store operating expenses
| |
$
|
166,456
| |
$
|
161,767
| |
$
|
4,689
|
| |
2.9
|
%
| |
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 ground lease costs and
administrative costs such as office supplies, telephone and data
charges and association and business licensing fees.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
|
| |
| | | | | | | |
| |
| |
| Debt Summary as of March 31, 2013 |
|
(Amounts in thousands)
|
| | | | | | | | | | | | | |
|
| | | | | | | | | | | |
Weighted
| | |
| | | | | | | | | |
Weighted
| |
Average
| | |
| | | | | | | | | |
Average
| |
Maturities
| | |
| | | | | |
Amounts (1)
| |
% of Total
| |
Rates (1)
| |
(years)
| | |
| | | | | | | | | | | | | |
|
|
Secured
| |
$
|
6,380,424
| | | |
52.5
|
%
| |
4.86
|
%
| |
7.1
| | | |
|
Unsecured
| |
|
5,774,890
|
| |
|
47.5
|
%
| |
5.05
|
%
| |
4.5
|
| | |
| | | | | | | | | | | | | |
|
|
Total
| |
$
|
12,155,314
|
| |
|
100.0
|
%
| |
4.96
|
%
| |
5.8
|
| | |
| | | | | | | | | | | | | |
|
|
Fixed Rate Debt:
| | | | | | | | | | |
Secured – Conventional
|
$
|
5,698,704
| | | |
46.9
|
%
| |
5.33
|
%
| |
5.6
| | | |
|
Unsecured – Public/Private
| |
|
4,329,837
|
| |
|
35.6
|
%
| |
5.76
|
%
| |
5.2
|
| | |
| | | | | | | | | | | | | |
|
|
Fixed Rate Debt
| |
|
10,028,541
|
| |
|
82.5
|
%
| |
5.54
|
%
| |
5.4
|
| | |
| | | | | | | | | | | | | |
|
|
Floating Rate Debt:
| | | | | | | | | | |
|
Secured – Conventional
| | |
57,387
| | | |
0.5
|
%
| |
2.35
|
%
| |
1.5
| | | |
|
Secured – Tax Exempt
| | |
624,333
| | | |
5.1
|
%
| |
0.39
|
%
| |
19.9
| | | |
|
Unsecured – Public/Private
| | |
1,050,053
| | | |
8.6
|
%
| |
2.37
|
%
| |
1.3
| | | |
|
Unsecured – Revolving Credit Facility
| |
|
395,000
|
| |
|
3.3
|
%
| |
1.24
|
%
| |
5.0
|
| | |
| | | | | | | | | | | | | |
|
|
Floating Rate Debt
| |
|
2,126,773
|
| |
|
17.5
|
%
| |
1.45
|
%
| |
7.6
|
| | |
| | | | | | | | | | | | | |
|
|
Total
| |
$
|
12,155,314
|
| |
|
100.0
|
%
| |
4.96
|
%
| |
5.8
|
| | |
| | | | | | | | | | | | | |
|
|
(1) Net of the effect of any derivative instruments. Weighted
average rates are for the quarter ended March 31, 2013.
|
| | | | | | | | | | | | | |
|
|
Note: The Company capitalized interest of approximately $8.4 million
and $5.0 million during the quarters ended March 31, 2013 and 2012,
respectively.
|
| | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | |
|
| Debt Maturity Schedule as of March 31, 2013 |
|
(Amounts in thousands)
|
| | | |
| |
| | | | | | | | |
| | | | | | | | | | | |
Weighted
| |
Weighted
|
| | | | | | | | | | | |
Average Rates
| |
Average
|
| | | |
Fixed
| |
Floating
| | | |
% of
| |
on Fixed
| |
Rates on
|
| |
Year
| |
Rate (1)
| |
Rate (1)
| |
Total
| |
Total
| |
Rate Debt (1)
| |
Total Debt (1)
|
| | | | | | | | | | | | | |
|
| |
2013
| |
$
|
222,459
| |
$
|
300,434
| | |
$
|
522,893
| |
(2)
|
4.3
|
%
| |
6.92
|
%
| |
4.77
|
%
|
| |
2014
| | |
1,517,354
| | |
49,020
| | | |
1,566,374
| | |
12.9
|
%
| |
5.67
|
%
| |
5.57
|
%
|
| |
2015
| | |
419,785
| | |
750,000
| |
(3)
| |
1,169,785
| | |
9.6
|
%
| |
6.29
|
%
| |
3.17
|
%
|
| |
2016
| | |
1,192,559
| | |
—
| | | |
1,192,559
| | |
9.8
|
%
| |
5.34
|
%
| |
5.34
|
%
|
| |
2017
| | |
2,171,013
|
(4)
| |
456
| | | |
2,171,469
| | |
17.9
|
%
| |
6.20
|
%
| |
6.20
|
%
|
| |
2018
| | |
83,599
| | |
395,725
| |
(5)
| |
479,324
| | |
3.9
|
%
| |
5.63
|
%
| |
2.46
|
%
|
| |
2019
| | |
805,844
| | |
20,766
| | | |
826,610
| | |
6.8
|
%
| |
5.48
|
%
| |
5.35
|
%
|
| |
2020
| | |
1,677,783
| | |
809
| | | |
1,678,592
| | |
13.8
|
%
| |
5.49
|
%
| |
5.49
|
%
|
| |
2021
| | |
1,194,390
| | |
856
| | | |
1,195,246
| | |
9.8
|
%
| |
4.64
|
%
| |
4.64
|
%
|
| |
2022
| | |
228,045
| | |
905
| | | |
228,950
| | |
1.9
|
%
| |
3.17
|
%
| |
3.18
|
%
|
| |
2023+
| | |
306,183
| | |
675,944
| | | |
982,127
| | |
8.1
|
%
| |
6.23
|
%
| |
2.33
|
%
|
| |
Premium/(Discount)
| |
|
209,527
| |
|
(68,142
|
)
| |
|
141,385
|
| |
1.2
|
%
| |
N/A
|
| |
N/A
|
|
| | | | | | | | | | | | | |
|
| |
Total
| |
$
|
10,028,541
| |
$
|
2,126,773
|
| |
$
|
12,155,314
|
| |
100.0
|
%
| |
5.59
|
%
| |
4.84
|
%
|
| | | | | | | | | | | | | |
|
|
(1)
| |
Net of the effect of any derivative instruments. Weighted average
rates are as of March 31, 2013.
|
| | | | | | | | | | | | | |
|
|
(2)
| |
On April 1, 2013, the Company paid off the $400.0 million
outstanding of its 5.200% public notes at maturity, of which $300.0
million was swapped to a floating interest rate.
|
| | | | | | | | | | | | | |
|
|
(3)
| |
Includes the Company's new senior unsecured $750.0 million delayed
draw term loan facility that matures on January 11, 2015 and is
subject to a one-year extension option exercisable by the Company.
|
| | | | | | | | | | | | | |
|
|
(4)
| |
Includes $1.27 billion in Archstone mortgage notes payable of which
all or a portion of can be modified and extended to mature in 2023
under certain circumstances, including the Company's election no
later than June 1, 2013. On March 29, 2013, $543.0 million in
unrelated mortgage notes payable due in 2017 were retired early.
|
| | | | | | | | | | | | | |
|
|
(5)
| |
Includes $395.0 million outstanding on the Company's unsecured
revolving credit facility. As of March 31, 2013, there was
approximately $2.07 billion available on this facility.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
| Unsecured Debt Summary as of March 31, 2013 |
|
(Amounts in thousands)
|
|
| |
| |
| |
| |
| |
|
|
| |
| | | | | | | | | | |
Unamortized
| | |
| | |
Coupon
| |
Due
| | | |
Face
| |
Premium/
| |
Net
|
| | |
Rate
| |
Date
| | | |
Amount
| |
(Discount)
| |
Balance
|
| | | | | | | | | | | | |
|
| Fixed Rate Notes: | | | | | | | | | | | | |
| | |
5.200
|
%
| | 04/01/13 | |
(1)
| |
$
|
400,000
| | |
$
|
—
| | |
$
|
400,000
| |
|
Fair Value Derivative Adjustments
| | | | | |
(1)
| | |
(300,000
|
)
| | |
—
| | | |
(300,000
|
)
|
| | |
5.250
|
%
| | 09/15/14 | | | | |
500,000
| | | |
(90
|
)
| | |
499,910
| |
| | |
6.584
|
%
| | 04/13/15 | | | | |
300,000
| | | |
(221
|
)
| | |
299,779
| |
| | |
5.125
|
%
| | 03/15/16 | | | | |
500,000
| | | |
(157
|
)
| | |
499,843
| |
| | |
5.375
|
%
| | 08/01/16 | | | | |
400,000
| | | |
(618
|
)
| | |
399,382
| |
| | |
5.750
|
%
| | 06/15/17 | | | | |
650,000
| | | |
(2,161
|
)
| | |
647,839
| |
| | |
7.125
|
%
| | 10/15/17 | | | | |
150,000
| | | |
(295
|
)
| | |
149,705
| |
| | |
4.750
|
%
| | 07/15/20 | | | | |
600,000
| | | |
(3,319
|
)
| | |
596,681
| |
| | |
4.625
|
%
| | 12/15/21 | | | | |
1,000,000
| | | |
(3,302
|
)
| | |
996,698
| |
| | |
7.570
|
%
| | 08/15/26 | | | |
|
140,000
|
| |
|
—
|
| |
|
140,000
|
|
| | | | | | | | | | | | |
|
| | | | | | | | |
|
4,340,000
|
| |
|
(10,163
|
)
| |
|
4,329,837
|
|
| Floating Rate Notes: | | | | | | | | | | | | |
| | | | | 04/01/13 | |
(1)
| | |
300,000
| | | |
—
| | | |
300,000
| |
|
Fair Value Derivative Adjustments
| | | | | |
(1)
| | |
53
| | | |
—
| | | |
53
| |
|
Delayed Draw Term Loan Facility
| |
LIBOR+1.20%
| | 01/11/15 | |
(2)(3)
| |
|
750,000
|
| |
|
—
|
| |
|
750,000
|
|
| | | | | | | | | | | | |
|
| | | | | | | | |
|
1,050,053
|
| |
|
—
|
| |
|
1,050,053
|
|
| | | | | | | | | | | | |
|
| Revolving Credit Facility: | |
LIBOR+1.05%
| | 04/01/18 | |
(2)(4)
| |
|
395,000
|
| |
|
—
|
| |
|
395,000
|
|
| | | | | | | | | | | | |
|
| Total Unsecured Debt | | | | | | | |
$
|
5,785,053
|
| |
$
|
(10,163
|
)
| |
$
|
5,774,890
|
|
|
| |
|
(1)
| |
Fair value interest rate swaps convert $300.0 million of the 5.200%
notes due April 1, 2013 to a floating interest rate. On April 1,
2013, the Company paid off these 5.200% public notes at maturity and
the related fair value interest rate swaps matured.
|
| |
|
|
(2)
| |
Facilities are private. All other unsecured debt is public.
|
| |
|
|
(3)
| |
On January 11, 2013, the Company entered into a new senior unsecured
$750.0 million delayed draw term loan facility which was fully drawn
on February 27, 2013 in connection with the Archstone acquisition.
The maturity date of January 11, 2015 is subject to a one-year
extension option exercisable by the Company. The interest rate on
advances under the new term loan facility will generally be LIBOR
plus a spread (currently 1.20%), which is dependent on the credit
rating of the Company's long-term debt.
|
| |
|
|
(4)
| |
On January 11, 2013, the Company replaced its existing $1.75 billion
facility with a new $2.5 billion unsecured revolving credit facility
maturing April 1, 2018. The interest rate on advances under the new
credit facility will generally be LIBOR plus a spread (currently
1.05%) and an annual facility fee (currently 15 basis points). Both
the spread and the facility fee are dependent on the credit rating
of the Company's long-term debt. As of March 31, 2013, there was
approximately $2.07 billion available on the Company's unsecured
revolving credit facility.
|
|
|
|
|
|
|
| Equity Residential |
|
| |
| |
| Selected Unsecured Public Debt Covenants |
| | | |
|
| | March 31,
| | December 31,
|
| |
2013
| |
2012
|
| | | |
|
|
Total Debt to Adjusted Total Assets (not to exceed 60%)
| |
44.2
|
%
| |
38.6
|
%
|
| | | |
|
|
Secured Debt to Adjusted Total Assets (not to exceed 40%)
| |
23.2
|
%
| |
17.6
|
%
|
| | | |
|
|
Consolidated Income Available for Debt Service to
| | | | |
|
Maximum Annual Service Charges
| | | | |
|
(must be at least 1.5 to 1)
| |
2.70
| | |
3.00
| |
| | | |
|
|
Total Unsecured Assets to Unsecured Debt
| |
297.7
|
%
| |
346.3
|
%
|
|
(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, 2013 |
|
(Amounts in thousands except for share/unit and per share amounts)
|
| | | | | | | | | | | | | | |
|
|
Secured Debt
| | | | | | | | | |
$
|
6,380,424
| |
52.5%
| | |
|
Unsecured Debt
| | | | | | | | | |
|
5,774,890
| |
47.5%
| | |
| | | | | | | | | | | | | | |
|
| Total Debt | | | | | | | | | | | 12,155,314 | | 100.0% | | 37.0% |
| | | | | | | | | | | | | | |
|
|
Common Shares (includes Restricted Shares)
| | | | | | |
360,063,675
| | |
96.2%
| | | | | | |
|
Units (includes OP Units and LTIP Units)
| | | | | |
|
14,226,725
| |
|
3.8%
| | | | | | |
| | | | | | | | | | | | | | |
|
|
Total Shares and Units
| | | | | | |
374,290,400
| | |
100.0%
| | | | | | |
|
Common Share Price at March 31, 2013 | | | | | |
$
|
55.06
| | | | | | | | |
| | | | | | | | | | | |
20,608,429
| |
99.8%
| | |
|
Perpetual Preferred Equity (see below)
| | | | | | | | | |
|
50,000
| |
0.2%
| | |
| | | | | | | | | | | | | | |
|
| Total Equity | | | | | | | | | | | 20,658,429 | | 100.0% | | 63.0% |
| | | | | | | | | | | | | | |
|
| Total Market Capitalization | | | | | | | | | | $ | 32,813,743 | | | | 100.0% |
| | | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | |
|
| Perpetual Preferred Equity as of March 31, 2013 |
|
(Amounts in thousands except for share and per share amounts)
|
| | | | | | | | |
| |
| | | | |
| | | | | | | | |
Annual
| |
Annual
| | | | |
| | |
Redemption
| |
Outstanding
| |
Liquidation
| |
Dividend
| |
Dividend
| | | | |
|
Series
| |
Date
| |
Shares
| |
Value
| |
Per Share
| |
Amount
| | | | |
| | | | | | | | | | | | | | |
|
|
Preferred Shares:
| | | | | | | | | | | | | | |
|
8.29% Series K
| | 12/10/2026 | |
1,000,000
| |
$
|
50,000
| |
$
|
4.145
| |
$
|
4,145
| | | | |
| | | | | | | | | | | | | | |
|
|
Total Perpetual Preferred Equity
| | | |
1,000,000
| |
$
|
50,000
| | | |
$
|
4,145
| | | | |
|
|
|
|
|
|
| Equity Residential |
| Common Share and Unit |
| Weighted Average Amounts Outstanding |
|
| |
| |
| |
Q113
| |
Q112
|
| | | |
|
| Weighted Average Amounts Outstanding for Net Income Purposes: | | | | |
|
Common Shares - basic
| |
337,532,330
| |
298,805,362
|
|
Shares issuable from assumed conversion/vesting of (1):
| | | | |
|
- OP Units
| |
—
| |
—
|
|
- long-term compensation shares/units
| |
—
| |
—
|
| | | |
|
|
Total Common Shares and Units - diluted (1)
| |
337,532,330
| |
298,805,362
|
| | | |
|
| Weighted Average Amounts Outstanding for FFO and Normalized | | | | |
| FFO Purposes: | | | | |
|
Common Shares - basic
| |
337,532,330
| |
298,805,362
|
|
OP Units - basic
| |
13,722,414
| |
13,205,300
|
| | | |
|
|
Total Common Shares and OP Units - basic
| |
351,254,744
| |
312,010,662
|
|
Shares issuable from assumed conversion/vesting of:
| | | | |
|
- long-term compensation shares/units
| |
2,400,834
| |
3,219,011
|
| | | |
|
|
Total Common Shares and Units - diluted
| |
353,655,578
| |
315,229,673
|
| | | |
|
| Period Ending Amounts Outstanding: | | | | |
|
Common Shares (includes Restricted Shares)
| |
360,063,675
| |
300,522,169
|
|
Units (includes OP Units and LTIP Units)
| |
14,226,725
| |
13,531,417
|
| | | |
|
|
Total Shares and Units
| |
374,290,400
| |
314,053,586
|
|
| |
|
(1)
| |
Potential common shares issuable from the assumed conversion of OP
Units and the exercise/vesting of long-term compensation
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 during the quarters ended March 31,
2013 and 2012.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | Equity Residential |
| | Partially Owned Entities as of March 31, 2013 |
| |
(Amounts in thousands except for project and apartment unit amounts)
|
| | |
| |
| |
| |
| |
| |
| |
| | | |
Consolidated
| |
Unconsolidated
|
| | | |
Development Projects
| | | | | |
Development Projects
| | | | |
| | | | | | | | | | | | | |
|
| | | |
Held for
| | | | | |
Held for
| | | | |
| | | |
and/or Under
| | | | | |
and/or Under
| | | | |
| | | |
Development (4)
| |
Operating
| |
Total
| |
Development (5)
| |
Operating
| |
Total
|
| | | | | | | | | | | | | |
|
| |
Total projects (1)
| |
|
—
|
| |
|
20
|
| |
|
20
|
| |
|
—
|
| |
|
1
|
| |
|
1
|
|
| | | | | | | | | | | | | |
|
| |
Total apartment units (1)
| |
|
—
|
| |
|
3,917
|
| |
|
3,917
|
| |
|
—
|
| |
|
336
|
| |
|
336
|
|
| | | | | | | | | | | | | |
|
| |
Operating information for the quarter ended 3/31/13 (at 100%):
| | | | | | | | | | | | |
| |
Operating revenue
| |
$
|
—
| | |
$
|
17,485
| | |
$
|
17,485
| | |
$
|
219
| | |
$
|
453
| | |
$
|
672
| |
| |
Operating expenses
| |
|
52
|
| |
|
5,602
|
| |
|
5,654
|
| |
|
256
|
| |
|
185
|
| |
|
441
|
|
| | | | | | | | | | | | | |
|
| |
Net operating (loss) income
| | |
(52
|
)
| | |
11,883
| | | |
11,831
| | | |
(37
|
)
| | |
268
| | | |
231
| |
| |
Depreciation
| | |
—
| | | |
6,094
| | | |
6,094
| | | |
—
| | | |
540
| | | |
540
| |
| |
General and administrative/other
| |
|
122
|
| |
|
13
|
| |
|
135
|
| |
|
—
|
| |
|
—
|
| |
|
—
|
|
| | | | | | | | | | | | | |
|
| |
Operating (loss) income
| | |
(174
|
)
| | |
5,776
| | | |
5,602
| | | |
(37
|
)
| | |
(272
|
)
| | |
(309
|
)
|
| |
Interest and other income
| | |
1
| | | |
3
| | | |
4
| | | |
—
| | | |
—
| | | |
—
| |
| |
Other expenses
| | |
(86
|
)
| | |
—
| | | |
(86
|
)
| | |
—
| | | |
(49
|
)
| | |
(49
|
)
|
| |
Interest:
| | | | | | | | | | | | |
| |
Expense incurred, net
| | |
—
| | | |
(2,854
|
)
| | |
(2,854
|
)
| | |
(16
|
)
| | |
(87
|
)
| | |
(103
|
)
|
| |
Amortization of deferred financing costs
| |
|
—
|
| |
|
(50
|
)
| |
|
(50
|
)
| |
|
—
|
| |
|
—
|
| |
|
—
|
|
| | | | | | | | | | | | | |
|
| |
(Loss) income before income and other taxes, (loss) from
| | | | | | | | | | | | |
| |
investments in unconsolidated entities and net gain
| | | | | | | | | | | | |
| |
on sales of discontinued operations
| | |
(259
|
)
| | |
2,875
| | | |
2,616
| | | |
(53
|
)
| | |
(408
|
)
| | |
(461
|
)
|
| |
Income and other tax (expense) benefit
| | |
(11
|
)
| | |
(39
|
)
| | |
(50
|
)
| | |
—
| | | |
—
| | | |
—
| |
| |
(Loss) from investments in unconsolidated entities
| | |
—
| | | |
(97
|
)
| | |
(97
|
)
| | |
—
| | | |
—
| | | |
—
| |
| |
Net gain on sales of discontinued operations
| | |
—
| | | |
2,807
| | | |
2,807
| | | |
—
| | | |
—
| | | |
—
| |
| | | |
| |
| |
| |
| |
| |
|
| |
Net (loss) income
| |
$
|
(270
|
)
| |
$
|
5,546
|
| |
$
|
5,276
|
| |
$
|
(53
|
)
| |
$
|
(408
|
)
| |
$
|
(461
|
)
|
| | | | | | | | | | | | | |
|
| |
Debt - Secured (2):
| | | | | | | | | | | | |
| |
EQR Ownership (3)
| |
$
|
—
| | |
$
|
266,228
| | |
$
|
266,228
| | |
$
|
39,120
| | |
$
|
6,110
| | |
$
|
45,230
| |
| |
Noncontrolling Ownership
| |
|
—
|
| |
|
76,990
|
| |
|
76,990
|
| |
|
78,568
|
| |
|
24,440
|
| |
|
103,008
|
|
| | | | | | | | | | | | | |
|
| |
Total (at 100%)
| |
$
|
—
|
| |
$
|
343,218
|
| |
$
|
343,218
|
| |
$
|
117,688
|
| |
$
|
30,550
|
| |
$
|
148,238
|
|
| | | | | | | | | | | | | |
|
|
(1)
| |
Project and apartment unit counts exclude all uncompleted
development projects until those projects are substantially
completed.
|
| | | | | | | | | | | | | |
|
|
(2)
| |
All outstanding debt is non-recourse to the Company.
|
| | | | | | | | | | | | | |
|
|
(3)
| |
Represents the Company's current equity ownership interest.
|
| | | | | | | | | | | | | |
|
|
(4)
| | See Projects Under Development - Partially Owned on page 20 for
further information.
|
| | | | | | | | | | | | | |
|
|
(5)
| | See Projects Under Development - Unconsolidated on page 21 for
further information.
|
| | | | | | | | | | | | | |
|
|
Note:
| |
The above table excludes the Company's interests in unconsolidated
joint ventures entered into with AvalonBay ("AVB") in connection
with the Archstone transaction. These ventures own certain non-core
Archstone assets that are held for sale and succeeded to certain
residual Archstone liabilities, such as liability for various
employment-related matters as well as responsibility for tax
protection arrangements and third-party preferred interests in
former Archstone subsidiaries. The preferred interests have an
aggregate liquidation value of $167.2 million at March 31, 2013. The
ventures are owned 60% by the Company and 40% by AVB.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
| Consolidated Development and Lease-Up Projects as of March 31,
2013 |
|
(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: | | | | | | | | | | | | | | | | | | | | | | |
|
Jia (formerly Chinatown Gateway)
| | Los Angeles, CA | |
280
| | $ 92,920 | | $ 60,300 | | $ 60,300 | |
$ —
| |
60%
| |
—
| |
—
| |
Q3 2013
| |
Q2 2015
|
|
Breakwater at Marina Del Rey (2) (3)
| | Marina Del Rey, CA | |
224
| |
90,449
| |
85,392
| |
445
| |
27,000
| |
79%
| |
46%
| |
39%
| |
Q4 2013
| |
Q1 2014
|
|
Delray Beach II (4)
| | Delray Beach, FL | |
128
| |
23,739
| |
10,632
| |
10,632
| |
—
| |
53%
| |
—
| |
—
| |
Q1 2014
| |
Q2 2014
|
|
Westgate II
| | Pasadena, CA | |
252
| |
125,293
| |
69,454
| |
69,454
| |
—
| |
38%
| |
—
| |
—
| |
Q1 2014
| |
Q1 2015
|
|
1111 Belle Pre (formerly The Madison)
| | Alexandria, VA | |
360
| |
115,072
| |
70,545
| |
70,545
| |
—
| |
60%
| |
—
| |
—
| |
Q1 2014
| |
Q2 2015
|
| Urbana (formerly Market Street Landing)
| | Seattle, WA | |
287
| |
90,024
| |
46,677
| |
46,677
| |
—
| |
51%
| |
—
| |
—
| |
Q1 2014
| |
Q3 2015
|
|
Reserve at Town Center III
| | Mill Creek, WA | |
95
| |
21,330
| |
7,513
| |
7,513
| |
—
| |
23%
| |
—
| |
—
| |
Q2 2014
| |
Q4 2014
|
|
Westgate III
| | Pasadena, CA | |
88
| |
54,037
| |
23,624
| |
23,624
| |
—
| |
9%
| |
—
| |
—
| |
Q2 2014
| |
Q1 2015
|
|
170 Amsterdam (2)
| | New York, NY | |
237
| |
110,892
| |
17,604
| |
17,604
| |
—
| |
5%
| |
—
| |
—
| |
Q1 2015
| |
Q1 2016
|
| Projects Under Development - Wholly Owned
| | | |
1,951
| |
723,756
| |
391,741
| |
306,794
| |
27,000
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Projects Under Development - Partially Owned: | | | | | | | | | | | | | | | | | | | | | | |
|
Enclave at Wellington (4)
| | Wellington, FL
| |
268
| |
50,000
| |
26,798
| |
26,798
| |
—
| |
48%
| |
—
| |
—
| |
Q1 2014
| |
Q1 2015
|
| 400 Park Avenue South (5)
| | New York, NY | |
269
| |
251,961
| |
99,522
| |
99,522
| |
—
| |
13%
| |
—
| |
—
| |
Q2 2015
| |
Q1 2016
|
| Projects Under Development - Partially Owned
| | | |
537
| |
301,961
| |
126,320
| |
126,320
| |
—
| | | | | | | | | | |
| | | | | |
| |
| |
| |
| |
| | | | | | | | | | |
| Projects Under Development | | | | 2,488 | | 1,025,717 | | 518,061 | | 433,114 | | 27,000 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Completed Not Stabilized - Wholly Owned (6): | | | | | | | | | | | | | | | | | | | | | | |
| 2201 Pershing Drive | | Arlington, VA | |
188
| |
63,242
| |
58,133
| |
—
| |
—
| | | |
98%
| |
92%
| |
Completed
| |
Q3 2013
|
| Gaithersburg Station (7)
| | Gaithersburg, MD | |
389
| |
103,700
| |
102,001
| |
—
| |
94,694
| | | |
50%
| |
47%
| |
Completed
| |
Q1 2014
|
|
Projects Completed Not Stabilized - Wholly Owned
| | | |
577
| |
166,942
| |
160,134
| |
—
| |
94,694
| | | | | | | | | | |
| | | | | |
| |
| |
| |
| |
| | | | | | | | | | |
| Projects Completed Not Stabilized | | | | 577 | | 166,942 | | 160,134 | | — | | 94,694 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Completed and Stabilized During the Quarter - Wholly Owned: | | | | | | | | | | | | | | | | | | | | | | |
|
The Savoy at Dayton Station III (formerly Savoy III)
| | Aurora, CO | |
168
| |
22,356
| |
22,356
| |
—
| |
—
| | | |
99%
| |
97%
| |
Completed
| |
Stabilized
|
|
Projects Completed and Stabilized During the Quarter - Wholly Owned
| | | |
168
| |
22,356
| |
22,356
| |
—
| |
—
| | | | | | | | | | |
| | | | | |
| |
| |
| |
| |
| | | | | | | | | | |
| Projects Completed and Stabilized During the Quarter | | | | 168 | | 22,356 | | 22,356 | | — | | — | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Total Consolidated Projects | | | | 3,233 | | $ 1,215,015 | | $ 700,551 | | $ 433,114 | | $ 121,694 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Land Held for Development | | | | N/A | | N/A | | $ 577,676 | | $ 577,676 | | $ — | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
Total Capital
| |
Q1 2013
| | | | | | |
| NOI CONTRIBUTION FROM CONSOLIDATED DEVELOPMENT PROJECTS | | | |
Cost (1)
| |
NOI
| | | | | | |
| Projects Under Development | | | | $ 1,025,717 | | $ (46) | | | | | | |
|
Completed Not Stabilized
| | | |
166,942
| |
841
| | | | | | |
|
Completed and Stabilized During the Quarter
| | | |
22,356
| |
430
| | | | | | |
|
Total Consolidated Development NOI Contribution
| | | | $ 1,215,015 | | $ 1,225 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
(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)
| |
The land under this development in subject to a long term ground
lease.
|
|
(3)
| |
The Company acquired this property, part of which is currently being
renovated, in connection with the Archstone transaction. The
non-recourse loan on this property has a current outstanding balance
of $27.0 million, bears interest at LIBOR plus 1.75% and matures
September 1, 2014.
|
|
(4)
| |
The Company acquired this development project in connection with the
Archstone transaction and is continuing development activities. The
Company has a 95.0% ownership interest in Enclave at Wellington.
|
|
(5)
| |
The Company is jointly developing with Toll Brothers (NYSE: TOL) a
vacant land parcel at 400 Park Avenue South in New York City with
the Company's rental portion on floors 2-22 and Toll's for sale
portion on floors 23-40. The total capital cost and total book value
to date represent only the Company's portion of the project. Toll
Brothers has funded $67.7 million for their allocated share of the
project.
|
|
(6)
| |
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.
|
|
(7)
| |
The Company acquired this completed development project prior to
stabilization in connection with the Archstone transaction and is
continuing lease-up activities. This project has a non-recourse loan
with a current outstanding balance of $84.0 million (excluding the
unamortized portion of a mark to market premium), bears interest at
5.24% and matures April 1, 2053.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
| Unconsolidated Development and Lease-Up Projects as of March 31,
2013 |
|
(Amounts in thousands except for project and apartment unit amounts)
|
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | |
Total Book
| | | | | | | | | | | | |
| | | | | |
No. of
| |
Total
| |
Total
| |
Value Not
| | | | | | | | | |
Estimated
| |
Estimated
|
| | | |
Percentage
| |
Apartment
| |
Capital
| |
Book Value
| |
Placed in
| |
Total
| |
Percentage
| |
Percentage
| |
Percentage
| |
Completion
| |
Stabilization
|
|
Projects
| |
Location
| |
Ownership
|
|
Units
|
|
Cost (1)
|
|
to Date
|
|
Service
|
|
Debt
| |
Completed
|
|
Leased
|
|
Occupied
|
|
Date
|
|
Date
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Projects Under Development - Unconsolidated: | | | | | | | | | | | | | | | | | | | | | | | | |
|
Nexus Sawgrass (formerly Sunrise Village) (2)
| | Sunrise, FL | |
20.0 %
| |
501
| |
$
|
78,212
| |
$
|
67,735
| |
$
|
67,735
| |
$
|
36,345
| |
90%
| |
24%
| |
14%
| |
Q3 2013
| |
Q3 2014
|
|
San Norterra (3)
| | Phoenix, AZ | |
85.0 %
| |
388
| | |
56,250
| | |
46,107
| | |
46,107
| | |
23,973
| |
80%
| |
28%
| |
17%
| |
Q4 2013
| |
Q2 2014
|
|
Domain (2)
| | San Jose, CA | |
20.0 %
| |
444
| | |
154,570
| | |
120,139
| | |
120,139
| | |
57,370
| |
77%
| |
—
| |
—
| |
Q4 2013
| |
Q4 2015
|
| Parkside at Emeryville (4)
| | Emeryville, CA | |
5.0 %
| |
180
| |
|
75,000
| |
|
28,473
| |
|
28,473
| |
|
—
| |
13%
| |
—
| |
—
| |
Q3 2014
| |
Q4 2015
|
| Projects Under Development - Unconsolidated
| | | | | |
1,513
| | |
364,032
| | |
262,454
| | |
262,454
| | |
117,688
| | | | | | | | | | |
| | | | | | | |
| |
| |
| |
| |
| | | | | | | | | | |
| Projects Under Development | | | | | | 1,513 | |
| 364,032 | |
| 262,454 | |
| 262,454 | |
| 117,688 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Total Unconsolidated Projects | | | | | | 1,513 | | $ | 364,032 | | $ | 262,454 | | $ | 262,454 | | $ | 117,688 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Unconsolidated Land Held for Development | | | | | |
N/A
| |
|
N/A
| | $ | 17,863 | | $ | 17,863 | |
$
|
—
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
(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)
| |
These development projects are owned 20% by the Company and 80% by
an institutional partner in two separate unconsolidated joint
ventures. Total project costs are approximately $232.8 million and
construction will be predominantly funded with two separate
long-term, non-recourse secured loans from the partner. The Company
is responsible for constructing the projects and has given certain
construction cost overrun guarantees but currently has no further
funding obligations. Nexus Sawgrass has a maximum debt commitment of
$48.7 million, the loan bears interest at 5.60% and matures January
1, 2021. Domain has a maximum debt commitment of $98.6 million, the
loan bears interest at 5.75% and matures January 1, 2022.
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
(3)
| |
The Company acquired this development project in connection with the
Archstone transaction. Total project costs are approximately $56.3
million and construction is being partially funded with a long-term,
non-recourse loan. San Norterra has a maximum debt commitment of
$34.8 million, the loan bears interest at LIBOR plus 2.25% and
matures January 6, 2015.
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
(4)
| |
The Company acquired this development project in connection with the
Archstone transaction. Total project costs are approximately $75.0
million and construction will be partially funded with a long-term
loan. Parkside at Emeryville has a maximum debt commitment of $39.5
million which as of March 31, 2013 has not yet been drawn; the loan
will bear interest at LIBOR plus 2.25% and matures August 14, 2015.
The Company has given a repayment guaranty on the construction loan
of 50% of the outstanding balance, up to a maximum of $19.7 million,
and has given certain construction cost overrun guarantees.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
| Repairs and Maintenance Expenses and Capital Expenditures to Real
Estate |
| For the Quarter Ended March 31, 2013 |
|
(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)
| |
90,350
| |
$
|
21,871
| |
$
|
242
| |
$
|
17,847
| |
$
|
198
| |
$
|
39,718
| |
$
|
440
| |
$
|
12,466
| |
$
|
138
| |
$
|
9,805
| |
$
|
108
| |
$
|
22,271
| |
$
|
246
| |
(9)
| |
$
|
61,989
| |
$
|
686
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Non-Same Store Properties (7)
| |
22,999
| | |
1,802
| | |
180
| | |
696
| | |
70
| | |
2,498
| | |
250
| | |
1,126
| | |
113
| | |
1,561
| | |
156
| | |
2,687
| | |
269
| | | | |
5,185
| | |
519
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Other (8)
| |
—
| |
|
2,564
| | | |
|
3,434
| | | |
|
5,998
| | | |
|
1,273
| | | |
|
368
| | | |
|
1,641
| | | | | |
|
7,639
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Total
| | |
113,349
| |
$
|
26,237
| | | |
$
|
21,977
| | | |
$
|
48,214
| | | |
$
|
14,865
| | | |
$
|
11,734
| | | |
$
|
26,599
| | | | | |
$
|
74,813
| | |
|
| |
|
(1)
| |
Total Apartment Units - Excludes 336 unconsolidated apartment units
and 5,093 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 $5.0 million spent in Q1 2013 on apartment unit
renovations/rehabs (primarily kitchens and baths) on 649 apartment
units (equating to about $7,700 per apartment unit rehabbed)
designed to reposition these assets for higher rental levels in
their respective markets. In 2013, the Company expects to spend
approximately $40.8 million rehabbing 5,000 apartment units
(equating to about $8,150 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, 2012, less
properties subsequently sold.
|
| |
|
|
(7)
| | Non-Same Store Properties - Primarily includes all properties
acquired during 2012 and 2013, plus any properties in lease-up and
not stabilized as of January 1, 2012. Per apartment unit amounts are
based on a weighted average of 9,991 apartment units. Includes only
approximately one month of activity for the Archstone properties.
|
| |
|
|
(8)
| |
Other - Primarily includes expenditures for properties sold during
the period.
|
| |
|
|
(9)
| |
For 2013, the Company estimates that it will spend approximately
$1,500 per apartment unit of capital expenditures for the
approximately 80,000 apartment units that the Company expects to
have in its annual same store set, inclusive of apartment unit
renovation/rehab costs, or $1,150 per apartment unit excluding
apartment unit renovation/rehab costs.
|
|
|
|
|
|
|
| Equity Residential |
| Discontinued Operations |
|
(Amounts in thousands)
|
|
| |
| |
| |
Quarter Ended
|
| | March 31,
|
| |
2013
| |
2012
|
| | | |
|
| REVENUES | | | | |
|
Rental income
| |
$
|
47,342
|
| |
$
|
84,142
|
|
| | | |
|
|
Total revenues
| |
|
47,342
|
| |
|
84,142
|
|
| | | |
|
| EXPENSES (1) | | | | |
|
Property and maintenance
| | |
11,870
| | | |
19,849
| |
|
Real estate taxes and insurance
| | |
5,042
| | | |
3,797
| |
|
Property management
| | |
1
| | | |
70
| |
|
Depreciation
| | |
14,766
| | | |
26,862
| |
|
General and administrative
| |
|
7
|
| |
|
4
|
|
| | | |
|
|
Total expenses
| |
|
31,686
|
| |
|
50,582
|
|
| | | |
|
|
Discontinued operating income
| | |
15,656
| | | |
33,560
| |
| | | |
|
|
Interest and other income
| | |
52
| | | |
28
| |
|
Other expenses
| | |
(1
|
)
| | |
(111
|
)
|
|
Interest (2):
| | | | |
|
Expense incurred, net
| | |
(34
|
)
| | |
(699
|
)
|
|
Amortization of deferred financing costs
| | |
(153
|
)
| | |
(40
|
)
|
|
Income and other tax (expense) benefit
| |
|
(56
|
)
| |
|
(101
|
)
|
| | | |
|
|
Discontinued operations
| | |
15,464
| | | |
32,637
| |
|
Net gain on sales of discontinued operations
| |
|
1,198,922
|
| |
|
132,956
|
|
| | | |
|
|
Discontinued operations, net
| |
$
|
1,214,386
|
| |
$
|
165,593
|
|
|
|
|
(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 2013
|
| | | | |
to Actual Q1 2013
|
| | | | |
Amounts
| |
Per Share
|
|
Guidance Q1 2013 Normalized FFO - Diluted (2) (3)
| |
$
|
226,299
| | |
$
|
0.641
| |
|
Property NOI
| | | | |
1,474
| | | |
0.004
| |
|
Other
| | | | |
(1,604
|
)
| | |
(0.005
|
)
|
| | | | | | |
|
|
Actual Q1 2013 Normalized FFO - Diluted (2) (3)
| |
$
|
226,169
|
| |
$
|
0.640
|
|
| | | | | | |
|
|
|
|
|
|
|
|
|
|
| | | | | | |
|
| | | | | | |
|
| Non-Comparable Items – Adjustments from FFO to Normalized FFO (2)
(3) |
| | | | | | |
|
| | |
Quarter Ended March 31,
|
| | |
2013
| |
2012
| |
Variance
|
| | | | | | |
|
|
Impairment
| | |
$
|
—
|
| |
$
|
—
|
| |
$
|
—
|
|
|
Asset impairment and valuation allowances
| |
|
—
|
| |
|
—
|
| |
|
—
|
|
| | | | | | |
|
|
Archstone merger costs (merger expenses)
| | |
19,092
| | | |
1,149
| | | |
17,943
| |
|
Archstone merger costs (loss from investments in unconsolidated
entities due to merger expenses)
| | |
46,011
| | | |
—
| | | |
46,011
| |
|
Property acquisition costs (other expenses)
| | |
32
| | | |
443
| | | |
(411
|
)
|
|
Write-off of pursuit costs (other expenses)
| |
|
2,533
|
| |
|
1,034
|
| |
|
1,499
|
|
|
Property acquisition costs and write-off of pursuit costs
| |
|
67,668
|
| |
|
2,626
|
| |
|
65,042
|
|
| | | | | | |
|
|
Prepayment premiums/penalties (interest expense)
| | |
71,443
| | | |
—
| | | |
71,443
| |
|
Write-off of unamortized deferred financing costs (interest expense)
(A)
| | |
4,123
| | | |
1
| | | |
4,122
| |
|
Write-off of unamortized (premiums)/discounts/OCI (interest expense)
| |
|
4,077
|
| |
|
(42
|
)
| |
|
4,119
|
|
|
Debt extinguishment (gains) losses, including prepayment penalties,
preferred share
| | | | | | | | | | | | |
|
redemptions and non-cash convertible debt discounts
| |
|
79,643
|
| |
|
(41
|
)
| |
|
79,684
|
|
| | | | | | |
|
|
Net incremental (gain) on sales of condominium units
| | |
—
| | | |
(49
|
)
| | |
49
| |
|
Income and other tax expense (benefit) - Condo sales
| | |
—
| | | |
45
| | | |
(45
|
)
|
|
(Gain) on sale of Equity Corporate Housing (ECH)
| |
|
(250
|
)
| |
|
—
|
| |
|
(250
|
)
|
|
(Gains) losses on sales of non-operating assets, net of income and
other tax expense (benefit)
| |
|
(250
|
)
| |
|
(4
|
)
| |
|
(246
|
)
|
| | | | | | |
|
| | | | | | |
|
|
Insurance/litigation settlement expense (other expenses)
| | |
—
| | | |
4,186
| | | |
(4,186
|
)
|
| Prospect Towers garage insurance proceeds (real estate taxes and
insurance)
| | |
—
| | | |
(3,467
|
)
| | |
3,467
| |
|
Other (other expenses)
| | |
|
—
|
| |
|
255
|
| |
|
(255
|
)
|
|
Other miscellaneous non-comparable items
| |
|
—
|
| |
|
974
|
| |
|
(974
|
)
|
| | |
| |
| |
|
|
Non-comparable items – Adjustments from FFO to Normalized FFO (2) (3)
| |
$
|
147,061
|
| |
$
|
3,555
|
| |
$
|
143,506
|
|
|
|
|
(A) For the quarter ended March 31, 2013, includes $2.5 million of
bridge loan costs related to the Archstone transaction.
|
|
| |
|
Note: See page 27 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. Therefore, certain items excluded from
Normalized FFO, such as debt extinguishment costs/prepayment
penalties, property acquisition costs and the write-off of pursuit
costs, are not included in the estimates provided on this page. See
page 26 for estimates of property acquisition costs, prepayment
premiums/penalties and other amounts not included in 2013 Normalized
FFO guidance. See page 27 for the definitions, the footnotes
referenced below and the reconciliations of EPS to FFO and
Normalized FFO.
|
| | | |
|
| | | |
|
2013 Normalized FFO Guidance (per share
diluted) |
| | | |
|
| | Q2 2013 | | 2013 |
| | | |
|
|
Expected Normalized FFO (2) (3)
| | $0.67 to $0.71 | | $2.80 to $2.90 |
| | | |
|
2013 Same Store Assumptions |
| | | |
|
|
Physical occupancy
| |
95.3 %
|
|
Revenue change
| |
4.0% to 5.0%
|
|
Expense change
| |
2.5% to 3.5%
|
|
NOI change
| |
4.5% to 6.0%
|
| | | |
|
|
(Note: The same store guidance above is computed based on the
portfolio of approximately 80,000 apartment units that the Company
expects to have in its annual same store set after the completion of
its planned 2013 dispositions. 30 basis point change in NOI
percentage = $0.01 per share change in EPS/FFO/Normalized FFO)
|
| | | |
|
2013 Transaction Assumptions |
| | | |
|
|
Consolidated rental acquisitions (excluding Archstone)
| | $100.0 million |
|
Consolidated rental dispositions - EQR assets
| | $4.0 billion |
|
Consolidated rental dispositions - Archstone assets (pre-closing)
| | $500.0 million |
|
Capitalization rate spread
| |
100 basis points
|
| | | |
|
2013 Debt Assumptions, Includes Impact of
Archstone Debt Premium (see Note below) |
| | | |
|
|
Weighted average debt outstanding
| | $11.1 billion to $11.6 billion |
|
Weighted average interest rate (reduced for capitalized interest)
| |
4.30 %
|
|
Interest expense
| | $477.3 million to $498.8 million |
| | | |
|
2013 Other Guidance Assumptions |
| | | |
|
|
General and administrative expense
| | $55.0 million to $58.0 million |
|
Interest and other income
| | $0.5 million to $1.5 million |
|
Income and other tax expense
| | $1.5 million to $2.5 million |
|
Debt offerings
| |
No additional amounts budgeted
|
|
Equity ATM share offerings
| |
No amounts budgeted
|
|
Preferred share offerings
| |
No amounts budgeted
|
|
Weighted average Common Shares and Units - Diluted
| |
370.9 million
|
| | | |
|
| Note: All debt assumptions include the impact of a mark-to-market
non-cash adjustment relating to Archstone's debt that the Company
assumed. Excluding the impact of the Archstone net debt premium, the
Company's debt assumptions would be as follows: |
| | | |
|
| Weighted average debt outstanding without Archstone net premium | | $11.0 billion to $11.5 billion |
| Weighted average interest rate (reduced for capitalized interest)
without Archstone net premium | | 4.71 % |
| Interest expense without Archstone net premium | | $518.1 million to $541.7 million |
|
|
|
|
|
|
|
|
|
|
| Equity Residential |
| 2013 Non-Comparable Items Guidance |
|
(Amounts in thousands)
|
|
| |
| |
| |
| |
|
The Non-Comparable Items provided below are based on current
expectations and are forward looking.
|
| | | | | | | |
|
| Midpoint of Forecasted 2013 Non-Comparable Items – Adjustments
from FFO to Normalized FFO (2) (3) |
| | | |
|
| |
Expected Q2 2013
| |
Expected 2013
|
| |
Amounts
| |
Per Share
| |
Amounts
| |
Per Share
|
| |
| |
| |
| |
|
|
Asset impairment and valuation allowances
| |
$
|
—
|
| |
|
—
|
| |
$
|
—
|
| |
|
—
|
|
| | | | | | | |
|
|
Archstone merger costs (merger expenses)
| | |
—
| | | |
—
| | | |
19,092
| | | |
0.05
| |
|
Archstone merger costs (loss from investments in unconsolidated
entities due to merger expenses)
| | |
5,494
| | | |
0.02
| | | |
56,601
| | | |
0.16
| |
|
Property acquisition costs (other expenses)
| | |
73
| | | |
—
| | | |
165
| | | |
—
| |
|
Write-off of pursuit costs (other expenses)
| |
|
1,700
|
| |
|
—
|
| |
|
7,633
|
| |
|
0.02
|
|
|
Property acquisition costs and write-off of pursuit costs
| |
|
7,267
|
| |
|
0.02
|
| |
|
83,491
|
| |
|
0.23
|
|
| | | | | | | |
|
|
Prepayment premiums/penalties
| | |
—
| | | |
—
| | | |
71,443
| | | |
0.19
| |
|
Write-off of unamortized deferred financing costs
| | |
4
| | | |
—
| | | |
4,138
| | | |
0.01
| |
|
Write-off of unamortized (premiums)/discounts/OCI
| |
|
(827
|
)
| |
|
—
|
| |
|
3,075
|
| |
|
0.01
|
|
|
Debt extinguishment (gains) losses, including prepayment penalties,
preferred share redemptions
| | | | | | | | | | | | | | | | |
|
and non-cash convertible debt discounts
| |
|
(823
|
)
| |
|
—
|
| |
|
78,656
|
| |
|
0.21
|
|
| | | | | | | |
|
|
Net (gain) on sales of land parcels
| | |
(12,073
|
)
| | |
(0.03
|
)
| | |
(12,073
|
)
| | |
(0.03
|
)
|
|
(Gain) on sale of Equity Corporate Housing (ECH)
| |
|
(352
|
)
| |
|
—
|
| |
|
(1,470
|
)
| |
|
(0.01
|
)
|
|
(Gains) losses on sales of non-operating assets, net of income and
other tax expense (benefit)
| |
|
(12,425
|
)
| |
|
(0.03
|
)
| |
|
(13,543
|
)
| |
|
(0.04
|
)
|
| |
| |
| |
| |
|
|
Other miscellaneous non-comparable items
| |
|
—
|
| |
|
—
|
| |
|
—
|
| |
|
—
|
|
| |
| |
| |
| |
|
|
Non-comparable items – Adjustments from FFO to Normalized FFO (2) (3)
| |
$
|
(5,981
|
)
| |
$
|
(0.01
|
)
| |
$
|
148,604
|
| |
$
|
0.40
|
|
| | | | | | | |
|
|
Note: See page 27 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 6, 24
and 26 |
| | | | | | |
| |
|
| | |
| | | | | | |
| | |
Expected Q1 2013
| |
Expected
| |
Expected
|
| | | | | | |
Q2 2013
| |
2013
|
| | |
Amounts
| |
Per Share
| |
Per Share
| |
Per Share
|
| | | | | | | | |
|
|
Expected Earnings - Diluted (5)
| |
$
|
1,290,247
| | |
$
|
3.653
| | | $1.50 to $1.54 | | $4.26 to $4.36 |
|
Add: Expected depreciation expense
| | |
172,200
| | | |
0.488
| | |
0.83
| | |
3.09
| |
|
Less: Expected net gain on sales (5)
| |
|
(1,319,274
|
)
| |
|
(3.735
|
)
| |
(1.65
|
)
| |
(4.95
|
)
|
| | | | | | | | |
|
|
Expected FFO - Diluted (1) (3)
| | |
143,173
| | | |
0.406
| | |
0.68 to 0.72
| |
2.40 to 2.50
|
| | | | | | | | |
|
|
Asset impairment and valuation allowances
| | |
—
| | | |
—
| | |
—
| | |
—
| |
|
Property acquisition costs and write-off of pursuit costs
| | |
27,170
| | | |
0.076
| | |
0.02
| | |
0.23
| |
|
Debt extinguishment (gains) losses, including prepayment penalties,
| | | | | | | | | | | | | | |
|
preferred share redemptions and non-cash convertible debt discounts
| | |
9,429
| | | |
0.027
| | |
—
| | |
0.21
| |
|
(Gains) losses on sales of non-operating assets, net of income and
other tax
| | | | | | | | | | | | | | |
|
expense (benefit)
| | |
—
| | | |
—
| | |
(0.03
|
)
|
|
(0.04
|
)
|
|
Other miscellaneous non-comparable items
| |
|
46,527
|
| |
|
0.132
|
| |
—
|
| |
—
|
|
| | | | | | | | |
|
|
Expected Normalized FFO - Diluted (2) (3)
| |
$
|
226,299
|
| |
$
|
0.641
|
| | $0.67 to $0.71 | | $2.80 to $2.90 |
|
|
| Definitions and Footnotes for Pages 6, 24 and 26 |
|
| | |
|
(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 and impairment write-downs of depreciable
operating properties, 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
apartment 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 non-operating asset
impairment and valuation allowances;
|
| |
• property acquisition and other transaction costs related to
mergers and acquisitions and pursuit cost write-offs;
|
| |
• 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 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 10 |
|
|
|
The following tables present reconciliations of operating income per
the consolidated statements of operations to NOI for the First
Quarter 2013 Same Store Properties:
|
|
| |
| |
| |
| | |
Quarter Ended March 31,
|
| | |
2013
| |
2012
|
| | | | |
|
|
Operating income
| |
$
|
117,529
| | |
$
|
114,476
| |
|
Adjustments:
| | | | |
|
Non-same store operating results
| | |
(39,586
|
)
| | |
5,732
| |
|
Fee and asset management revenue
| | |
(2,160
|
)
| | |
(2,064
|
)
|
|
Fee and asset management expense
| | |
1,646
| | | |
1,307
| |
|
Depreciation
| | |
205,272
| | | |
148,246
| |
|
General and administrative
| |
|
16,496
|
| |
|
13,688
|
|
| | | | |
|
|
Same store NOI
| |
$
|
299,197
|
| |
$
|
281,385
|
|
| | | | | | | |
|
Equity Residential
Marty McKenna, 312-928-1901
Source: Equity Residential