11% Increase in Normalized FFO per Share
CHICAGO--(BUSINESS WIRE)--
Equity Residential (NYSE: EQR) today reported results for the quarter
ended March 31, 2014. All per share results are reported as available to
common shares on a diluted basis.
“As expected, fundamentals across our core markets, with the exception
of Washington DC, remain favorable with continued strong demand and
manageable new supply,” said David J. Neithercut, Equity Residential’s
President and CEO. “As we approach our primary leasing season with
occupancy of 95.9% and renewal rates achieved to date of 5.3%, we are
well positioned for yet another year of strong revenue growth.”
First Quarter 2014
FFO (Funds from Operations), as defined by the National Association of
Real Estate Investment Trusts (NAREIT), for the first quarter of 2014
was $0.71 per share compared to $0.22 per share in the first quarter of
2013. The difference is due primarily to the expenses and prepayment
penalties the company incurred in the first quarter of 2013 in
connection with the Archstone acquisition, along with the items
described below.
For the first quarter of 2014, the company reported Normalized FFO of
$0.71 per share compared to $0.64 per share in the same period of 2013.
The following items impacted Normalized FFO per share in the quarter:
-
the positive impact of approximately $0.04 per share from higher same
store net operating income (NOI) and approximately $0.01 per share
from NOI from non-same store properties currently in lease up; and
-
the positive impact of approximately $0.02 per share from lower total
interest expense.
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 23 and 25 of this
release and the company has included guidance for Normalized FFO on page
24 of this release.
For the first quarter of 2014, the company reported earnings of $0.22
per share compared to $3.01 per share in the first quarter of 2013. The
difference is due primarily to approximately $1.2 billion in higher
gains on property sales in the first quarter of 2013, partially offset
by higher depreciation expense in the first quarter of 2013 as a result
of the Archstone acquisition as well as the expenses and prepayment
penalties incurred in connection with the Archstone acquisition.
Same Store Results
The company’s same store results include 18,465 stabilized apartment
units acquired in the Archstone acquisition that are owned and managed
by the company.
On a same store first quarter to first quarter comparison, which
includes 100,984 apartment units, revenues increased 4.0%, expenses
increased 3.2% and NOI increased 4.4%.
Investment Activity
During the first quarter of 2014, the company acquired a 430-unit
apartment property in Los Angeles for a purchase price of approximately
$143.0 million and a capitalization (cap) rate of 4.9%. Also during the
quarter, the company acquired additional development rights at one of
its existing land sites in Manhattan for approximately $5.5 million.
The company sold no properties or land parcels during the first quarter
of 2014.
During the first quarter of 2014, the company completed construction on
five development projects, consisting of 1,290 apartment units, at a
total development cost of approximately $368.3 million. Two of these
properties are located in Seattle and one each in Southern California,
South Florida and Washington, DC.
Also during the quarter, the company started construction on three
development projects, which will consist of a total of 1,145 apartment
units, at a total development cost of approximately $614.3 million. Two
of these properties are located in San Francisco and one in Southern
California.
Second Quarter 2014 Guidance
The company has established a Normalized FFO guidance range of $0.74 to
$0.78 per share for the second quarter of 2014. The difference between
the company’s first quarter Normalized FFO of $0.71 per share and the
midpoint of the second quarter guidance range of $0.76 per share is due
primarily to:
-
the positive impact of approximately $0.05 per share from higher NOI
from same store properties and properties in lease up;
-
the positive impact of approximately $0.01 per share from other items
including lower general and administrative expenses; and
-
the negative impact of approximately $0.01 per share from higher total
interest expense.
Second Quarter 2014 Earnings and Conference Call
Equity Residential expects to announce second quarter 2014 results on
Tuesday, July 29, 2014 and host a conference call to discuss those
results at 10:00 a.m. CT on Wednesday, July 30, 2014.
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 396
properties consisting of 111,537 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, May 1, at 10:00 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, |
| | 2014 | | 2013 |
| REVENUES | | | | |
|
Rental income
| |
$
|
630,725
| | |
$
|
502,562
| |
|
Fee and asset management
| |
|
2,717
|
| |
|
2,160
|
|
|
Total revenues
| |
|
633,442
|
| |
|
504,722
|
|
| | | |
|
| EXPENSES | | | | |
|
Property and maintenance
| | |
125,573
| | | |
98,529
| |
|
Real estate taxes and insurance
| | |
82,094
| | | |
65,095
| |
|
Property management
| | |
22,118
| | | |
22,489
| |
|
Fee and asset management
| | |
1,662
| | | |
1,646
| |
|
Depreciation
| | |
185,167
| | | |
196,222
| |
|
General and administrative
| |
|
17,576
|
| |
|
16,495
|
|
|
Total expenses
| |
|
434,190
|
| |
|
400,476
|
|
| | | |
|
|
Operating income
| | |
199,252
| | | |
104,246
| |
| | | |
|
|
Interest and other income
| | |
605
| | | |
320
| |
|
Other expenses
| | |
(657
|
)
| | |
(21,719
|
)
|
|
Interest:
| | | | |
|
Expense incurred, net
| | |
(113,049
|
)
| | |
(194,467
|
)
|
|
Amortization of deferred financing costs
| |
|
(2,792
|
)
| |
|
(6,948
|
)
|
|
Income (loss) before income and other taxes, (loss) from investments
in unconsolidated
| | | | | | | | |
|
entities, net (loss) on sales of land parcels and discontinued
operations
| | |
83,359
| | | |
(118,568
|
)
|
|
Income and other tax (expense) benefit
| | |
(222
|
)
| | |
(405
|
)
|
|
(Loss) from investments in unconsolidated entities
| | |
(1,409
|
)
| | |
(46,366
|
)
|
|
Net (loss) on sales of land parcels
| |
|
(30
|
)
| |
|
—
|
|
|
Income (loss) from continuing operations
| | |
81,698
| | | |
(165,339
|
)
|
|
Discontinued operations, net
| |
|
1,034
|
| |
|
1,226,373
|
|
|
Net income
| | |
82,732
| | | |
1,061,034
| |
|
Net (income) attributable to Noncontrolling Interests:
| | | | |
|
Operating Partnership
| | |
(3,093
|
)
| | |
(43,323
|
)
|
| Partially Owned Properties | |
|
(504
|
)
| |
|
(25
|
)
|
|
Net income attributable to controlling interests
| | |
79,135
| | | |
1,017,686
| |
|
Preferred distributions
| |
|
(1,036
|
)
| |
|
(1,036
|
)
|
|
Net income available to Common Shares
| |
$
|
78,099
|
| |
$
|
1,016,650
|
|
| | | |
|
| Earnings per share – basic: | | | | |
|
Income (loss) from continuing operations available to Common Shares
| |
$
|
0.21
|
| |
$
|
(0.47
|
)
|
|
Net income available to Common Shares
| |
$
|
0.22
|
| |
$
|
3.01
|
|
|
Weighted average Common Shares outstanding
| |
|
360,470
|
| |
|
337,532
|
|
| | | |
|
| Earnings per share – diluted: | | | | |
|
Income (loss) from continuing operations available to Common Shares
| |
$
|
0.21
|
| |
$
|
(0.47
|
)
|
|
Net income available to Common Shares
| |
$
|
0.22
|
| |
$
|
3.01
|
|
|
Weighted average Common Shares outstanding
| |
|
376,384
|
| |
|
337,532
|
|
| | | |
|
|
Distributions declared per Common Share outstanding
| |
$
|
0.50
|
| |
$
|
0.40
|
|
|
|
| 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, |
| | | 2014 | | 2013 |
|
Net income
| |
$
|
82,732
| | |
$
|
1,061,034
| |
|
Net (income) attributable to Noncontrolling Interests –
| | | | |
| Partially Owned Properties | | |
(504
|
)
| | |
(25
|
)
|
|
Preferred distributions
| |
|
(1,036
|
)
| |
|
(1,036
|
)
|
|
Net income available to Common Shares and Units
| | |
81,192
| | | |
1,059,973
| |
| | | | |
|
|
Adjustments:
| | | | |
|
Depreciation
| | |
185,167
| | | |
196,222
| |
|
Depreciation – Non-real estate additions
| | |
(1,188
|
)
| | |
(1,216
|
)
|
|
Depreciation – Partially Owned Properties | | |
(1,068
|
)
| | |
(1,275
|
)
|
|
Depreciation – Unconsolidated Properties | | |
1,603
| | | |
260
| |
|
Discontinued operations:
| | | | |
|
Depreciation
| | |
—
| | | |
23,816
| |
|
Net (gain) on sales of discontinued operations
| | |
(71
|
)
| | |
(1,198,922
|
)
|
|
Gain on sale of Equity Corporate Housing (ECH)
| |
|
—
|
| |
|
250
|
|
|
FFO available to Common Shares and Units (1) (3) (4)
| | |
265,635
| | | |
79,108
| |
| | | | |
|
|
Adjustments (see page 23 for additional detail):
| | | | |
|
Asset impairment and valuation allowances
| | |
—
| | | |
—
| |
|
Property acquisition costs and write-off of pursuit costs
| | |
474
| | | |
67,668
| |
|
Debt extinguishment (gains) losses, including prepayment penalties,
preferred share
| | | | |
|
redemptions and non-cash convertible debt discounts
| | |
—
| | | |
79,643
| |
|
(Gains) losses on sales of non-operating assets, net of income and
other tax expense
| | | | |
|
(benefit)
| | |
9
| | | |
(250
|
)
|
|
Other miscellaneous non-comparable items
| |
|
(463
|
)
| |
|
—
|
|
|
Normalized FFO available to Common Shares and Units (2) (3) (4)
| |
$
|
265,655
|
| |
$
|
226,169
|
|
| | | | |
|
|
FFO (1) (3)
| |
$
|
266,671
| | |
$
|
80,144
| |
|
Preferred distributions
| |
|
(1,036
|
)
| |
|
(1,036
|
)
|
|
FFO available to Common Shares and Units - basic and diluted (1) (3)
(4)
| |
$
|
265,635
|
| |
$
|
79,108
|
|
|
FFO per share and Unit - basic
| |
$
|
0.71
|
| |
$
|
0.23
|
|
|
FFO per share and Unit - diluted
| |
$
|
0.71
|
| |
$
|
0.22
|
|
| | | | |
|
|
Normalized FFO (2) (3)
| |
$
|
266,691
| | |
$
|
227,205
| |
|
Preferred distributions
| |
|
(1,036
|
)
| |
|
(1,036
|
)
|
|
Normalized FFO available to Common Shares and Units - basic and
diluted (2) (3) (4)
| |
$
|
265,655
|
| |
$
|
226,169
|
|
|
Normalized FFO per share and Unit - basic
| |
$
|
0.71
|
| |
$
|
0.64
|
|
|
Normalized FFO per share and Unit - diluted
| |
$
|
0.71
|
| |
$
|
0.64
|
|
| | | | |
|
|
Weighted average Common Shares and Units outstanding - basic
| |
|
374,201
|
| |
|
351,255
|
|
|
Weighted average Common Shares and Units outstanding - diluted
| |
|
376,384
|
| |
|
353,656
|
|
| | | | | | | |
|
| Note: |
| See page 23 for additional detail regarding the adjustments from
FFO to Normalized FFO. See page 25 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, |
| | 2014 | | 2013 |
| ASSETS | | | | |
|
Investment in real estate
| | | | |
|
Land
| |
$
|
6,281,124
| | |
$
|
6,192,512
| |
|
Depreciable property
| | |
19,623,472
| | | |
19,226,047
| |
|
Projects under development
| | |
865,177
| | | |
988,867
| |
|
Land held for development
| |
|
295,357
|
| |
|
393,522
|
|
|
Investment in real estate
| | |
27,065,130
| | | |
26,800,948
| |
|
Accumulated depreciation
| |
|
(4,992,877
|
)
| |
|
(4,807,709
|
)
|
|
Investment in real estate, net
| | |
22,072,253
| | | |
21,993,239
| |
|
Cash and cash equivalents
| | |
37,209
| | | |
53,534
| |
|
Investments in unconsolidated entities
| | |
205,068
| | | |
178,526
| |
|
Deposits – restricted
| | |
91,081
| | | |
103,567
| |
|
Escrow deposits – mortgage
| | |
43,995
| | | |
42,636
| |
|
Deferred financing costs, net
| | |
55,754
| | | |
58,486
| |
|
Other assets
| |
|
384,271
|
| |
|
404,557
|
|
| Total assets | | $ | 22,889,631 |
| | $ | 22,834,545 |
|
| | | |
|
| LIABILITIES AND EQUITY | | | | |
|
Liabilities:
| | | | |
|
Mortgage notes payable
| |
$
|
5,167,626
| | |
$
|
5,174,166
| |
|
Notes, net
| | |
5,477,656
| | | |
5,477,088
| |
|
Lines of credit
| | |
298,000
| | | |
115,000
| |
|
Accounts payable and accrued expenses
| | |
161,838
| | | |
118,791
| |
|
Accrued interest payable
| | |
78,140
| | | |
78,309
| |
|
Other liabilities
| | |
321,043
| | | |
347,748
| |
|
Security deposits
| | |
72,735
| | | |
71,592
| |
|
Distributions payable
| |
|
187,759
|
| |
|
243,511
|
|
| Total liabilities | |
| 11,764,797 |
| |
| 11,626,205 |
|
| | | |
|
| Commitments and contingencies | | | | |
| | | |
|
| Redeemable Noncontrolling Interests – Operating Partnership | |
| 405,276 |
| |
| 363,144 |
|
|
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, 2014 and December 31, 2013 | | |
50,000
| | | |
50,000
| |
|
Common Shares of beneficial interest, $0.01 par value;
| | | | |
|
1,000,000,000 shares authorized; 361,148,189 shares issued and
| | | | |
|
outstanding as of March 31, 2014 and 360,479,260 shares
| | | | |
|
issued and outstanding as of December 31, 2013 | | |
3,611
| | | |
3,605
| |
|
Paid in capital
| | |
8,541,046
| | | |
8,561,500
| |
|
Retained earnings
| | |
1,944,798
| | | |
2,047,258
| |
|
Accumulated other comprehensive (loss)
| |
|
(162,894
|
)
| |
|
(155,162
|
)
|
|
Total shareholders’ equity
| | |
10,376,561
| | | |
10,507,201
| |
|
Noncontrolling Interests:
| | | | |
|
Operating Partnership
| | |
215,339
| | | |
211,412
| |
| Partially Owned Properties | |
|
127,658
|
| |
|
126,583
|
|
|
Total Noncontrolling Interests
| |
|
342,997
|
| |
|
337,995
|
|
| Total equity | |
| 10,719,558 |
| |
| 10,845,196 |
|
| Total liabilities and equity | | $ | 22,889,631 |
| | $ | 22,834,545 |
|
|
|
| Equity Residential |
| Portfolio Summary |
| As of March 31, 2014 |
|
| |
| |
| |
| |
| | | | | |
% of
| |
Average
|
| | | |
Apartment
| |
Stabilized
| |
Rental
|
|
Markets/Metro Areas
| |
Properties
| |
Units
| |
NOI (1)
| |
Rate (2)
|
| | | | | | | |
|
| Core: | | | | | | | | |
| Washington DC | |
57
| |
18,652
| |
18.6%
| |
$
|
2,222
|
| New York | |
38
| |
10,330
| |
16.7%
| | |
3,771
|
| San Francisco | |
51
| |
13,208
| |
13.0%
| | |
2,281
|
| Los Angeles | |
59
| |
12,670
| |
12.1%
| | |
2,125
|
| Boston | |
34
| |
7,816
| |
10.1%
| | |
2,806
|
| South Florida | |
36
| |
11,731
| |
7.4%
| | |
1,586
|
| Seattle | |
40
| |
8,116
| |
6.7%
| | |
1,833
|
| Denver | |
19
| |
6,935
| |
4.4%
| | |
1,352
|
| San Diego | |
13
| |
3,505
| |
3.1%
| | |
1,938
|
| Orange County, CA | |
11
| |
3,490
| |
2.9%
| |
|
1,738
|
| Subtotal – Core | | 358 | | 96,453 | | 95.0% | | | 2,231 |
| | | | | | | |
|
| Non-Core: | | | | | | | | |
|
Inland Empire, CA | |
10
| |
3,081
| |
2.1%
| | |
1,530
|
| Orlando | |
10
| |
3,383
| |
1.7%
| | |
1,143
|
|
All Other Markets
| |
16
| |
3,561
| |
1.2%
| |
|
1,152
|
| Subtotal – Non-Core | | 36 | | 10,025 | | 5.0% | |
| 1,265 |
| Total | | 394 | | 106,478 | | 100.0% | |
| 2,138 |
| | | | | | | |
|
| Military Housing | |
2
| |
5,059
| |
—
| |
|
—
|
| | | | | | | |
|
| Grand Total | | 396 | | 111,537 | | 100.0% | | $ | 2,138 |
|
|
|
Note: Projects under development are not included in the Portfolio
Summary until construction has been completed.
|
|
| |
|
(1) % of Stabilized NOI includes budgeted 2014 NOI for stabilized
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, 2014 |
| | | | | | | | | | |
|
| | | | | | | | |
Apartment
| | |
| | | | | | |
Properties
| |
Units
| | |
| Wholly Owned Properties | |
367
| | | |
99,936
| | |
| Master-Leased Properties - Consolidated
| |
3
| | | |
853
| | |
| Partially Owned Properties - Consolidated
| |
20
| | | |
4,020
| | |
| Partially Owned Properties - Unconsolidated
| |
4
| | | |
1,669
| | |
| Military Housing | |
2
|
| |
|
5,059
| | |
| | | | | | | | | | |
|
| | | | | | |
396
|
| |
|
111,537
| | |
| | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | |
|
| Portfolio Rollforward Q1 2014 |
|
($ in thousands)
|
| | | | | | | | | | |
|
| | | | | | |
Apartment
| |
Purchase/
| | |
| | | | |
Properties
| |
Units
| |
(Sale) Price
| |
Cap Rate
|
| | | 12/31/2013 | |
390
| |
109,855
| | | | | |
|
Acquisitions:
| | | | | | | | | | |
| Rental Properties - Consolidated
| | | |
1
| |
430
| | |
$
|
143,000
| |
4.9
|
%
|
| Land Parcel - Consolidated
| | | |
—
| |
—
| | |
$
|
5,500
| | |
|
Completed Developments - Consolidated
| | | |
5
| |
1,290
| | | | | |
|
Configuration Changes
| | | |
—
| |
(38
|
)
| | | | |
| | | | | | | | | | |
|
| | | 3/31/2014 | |
396
| |
111,537
|
| | | | |
|
|
|
| | Equity Residential |
| | |
| |
| |
| |
| |
| |
| |
| | First Quarter 2014 vs. First Quarter 2013 |
| | Same Store Results/Statistics for 100,984 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 2014
| |
$
|
613,878
| | |
$
|
218,239
| | |
$
|
395,639
| | |
$
|
2,133
| | |
95.1
|
%
| |
11.3
|
%
|
| |
Q1 2013
| |
$
|
590,452
|
| |
$
|
211,485
|
| |
$
|
378,967
|
| |
$
|
2,053
|
| |
95.0
|
%
| |
12.1
|
%
|
| | | | | | | | | | | | | |
|
| |
Change
| |
$
|
23,426
|
| |
$
|
6,754
|
| |
$
|
16,672
|
| |
$
|
80
|
| |
0.1
|
%
| |
(0.8
|
%)
|
| | | | | | | | | | | | | |
|
| |
Change
| | |
4.0
|
%
| | |
3.2
|
%
| | |
4.4
|
%
| | |
3.9
|
%
| | | | |
| | | | | | | | | | | | | |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
| | First Quarter 2014 vs. Fourth Quarter 2013 |
| | Same Store Results/Statistics for 101,494 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 2014
| |
$
|
616,874
| | |
$
|
219,200
| | |
$
|
397,674
| | |
$
|
2,132
| | |
95.1
|
%
| |
11.3
|
%
|
| |
Q4 2013
| |
$
|
613,776
|
| |
$
|
202,649
|
| |
$
|
411,127
|
| |
$
|
2,116
|
| |
95.3
|
%
| |
12.2
|
%
|
| | | | | | | | | | | | | |
|
| |
Change
| |
$
|
3,098
|
| |
$
|
16,551
|
| |
$
|
(13,453
|
)
| |
$
|
16
|
| |
(0.2
|
%)
| |
(0.9
|
%)
|
| | | | | | | | | | | | | |
|
| |
Change
| | |
0.5
|
%
| | |
8.2
|
%
| | |
(3.3
|
%)
| | |
0.8
|
%
| | | | |
| | | | | | | | | | | | | |
|
| |
Note: Same store results/statistics include 18,465 stabilized
apartment units acquired in the Archstone acquisition that are owned
and managed by the Company.
|
| | | | | | | | | | | | | |
|
|
(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 25 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 2014 vs. First Quarter 2013 |
| Same Store Results/Statistics by Market |
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | |
Increase (Decrease) from Prior Year's Quarter
|
| | | |
Q1 2014
| |
Q1 2014
| |
Q1 2014
| | | | | | |
| | | |
% 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 | |
17,553
| |
18.5
|
%
| |
$
|
2,219
| |
94.5
|
%
| |
(0.5
|
%)
| |
4.2
|
%
| |
(2.8
|
%)
| |
(0.3
|
%)
| |
(0.3
|
%)
|
| New York | |
10,330
| |
16.4
|
%
| | |
3,762
| |
95.6
|
%
| |
3.0
|
%
| |
7.2
|
%
| |
0.1
|
%
| |
2.8
|
%
| |
0.2
|
%
|
| San Francisco | |
12,764
| |
13.8
|
%
| | |
2,238
| |
94.8
|
%
| |
8.4
|
%
| |
(5.3
|
%)
| |
16.7
|
%
| |
8.0
|
%
| |
0.3
|
%
|
| Los Angeles | |
11,139
| |
10.9
|
%
| | |
2,076
| |
95.2
|
%
| |
4.6
|
%
| |
(1.0
|
%)
| |
7.9
|
%
| |
4.6
|
%
| |
(0.1
|
%)
|
| Boston (2)
| |
7,722
| |
10.1
|
%
| | |
2,812
| |
95.1
|
%
| |
4.8
|
%
| |
9.6
|
%
| |
2.3
|
%
| |
3.8
|
%
| |
0.9
|
%
|
| South Florida | |
10,834
| |
7.6
|
%
| | |
1,564
| |
95.3
|
%
| |
4.8
|
%
| |
3.1
|
%
| |
5.8
|
%
| |
4.5
|
%
| |
0.1
|
%
|
| Seattle | |
7,411
| |
6.3
|
%
| | |
1,786
| |
95.0
|
%
| |
6.7
|
%
| |
4.3
|
%
| |
7.9
|
%
| |
6.4
|
%
| |
0.2
|
%
|
| Denver | |
6,935
| |
4.8
|
%
| | |
1,344
| |
95.2
|
%
| |
6.6
|
%
| |
3.2
|
%
| |
7.9
|
%
| |
7.1
|
%
| |
(0.5
|
%)
|
| San Diego | |
3,505
| |
3.3
|
%
| | |
1,926
| |
95.0
|
%
| |
4.4
|
%
| |
2.5
|
%
| |
5.4
|
%
| |
3.8
|
%
| |
0.6
|
%
|
| Orange County, CA | |
3,490
| |
3.1
|
%
| |
|
1,744
| |
95.1
|
%
| |
4.5
|
%
| |
(2.8
|
%)
| |
7.8
|
%
| |
4.8
|
%
| |
(0.3
|
%)
|
| Subtotal – Core | |
91,683
| |
94.8
|
%
| | |
2,221
| |
95.0
|
%
| |
4.0
|
%
| |
3.1
|
%
| |
4.5
|
%
| |
3.9
|
%
| |
0.1
|
%
|
| | | | | | | | | | | | | | | | | |
|
| Non-Core: | | | | | | | | | | | | | | | | | | |
|
Inland Empire, CA | |
3,081
| |
2.3
|
%
| | |
1,536
| |
95.5
|
%
| |
4.5
|
%
| |
5.8
|
%
| |
3.8
|
%
| |
3.4
|
%
| |
0.9
|
%
|
| Orlando | |
3,383
| |
1.8
|
%
| | |
1,141
| |
94.8
|
%
| |
1.8
|
%
| |
0.9
|
%
| |
2.3
|
%
| |
3.3
|
%
| |
(1.4
|
%)
|
|
All Other Markets
| |
2,837
| |
1.1
|
%
| |
|
1,124
| |
96.0
|
%
| |
2.8
|
%
| |
8.3
|
%
| |
(2.7
|
%)
| |
1.5
|
%
| |
1.2
|
%
|
| Subtotal – Non-Core | |
9,301
| |
5.2
|
%
| | |
1,267
| |
95.4
|
%
| |
3.1
|
%
| |
5.1
|
%
| |
1.9
|
%
| |
2.9
|
%
| |
0.2
|
%
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Total | |
100,984
| |
100.0
|
%
| |
$
|
2,133
| |
95.1
|
%
| |
4.0
|
%
| |
3.2
|
%
| |
4.4
|
%
| |
3.9
|
%
| |
0.1
|
%
|
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
|
Note: Same store results/statistics include 18,465 stabilized
apartment units acquired in the Archstone acquisition that are owned
and managed by the Company.
|
| | | | | | | | | | | | | | | | | |
|
|
(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
positively impacted by non-residential related income.
Residential-only same store revenues increased in Boston 3.6%
quarter over quarter.
|
|
|
| Equity Residential |
| First Quarter 2014 vs. Fourth Quarter 2013 |
| Same Store Results/Statistics by Market |
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | |
Increase (Decrease) from Prior Quarter
|
| | | |
Q1 2014
| |
Q1 2014
| |
Q1 2014
| | | | | | | | | | |
| | | |
% 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 | |
17,741
| |
18.6
|
%
| |
$
|
2,223
| |
94.5
|
%
| |
(0.7
|
%)
| |
12.7
|
%
| |
(6.4
|
%)
| |
(0.2
|
%)
| |
(0.5
|
%)
|
| New York | |
10,330
| |
16.3
|
%
| | |
3,762
| |
95.6
|
%
| |
0.6
|
%
| |
14.4
|
%
| |
(7.3
|
%)
| |
1.1
|
%
| |
(0.4
|
%)
|
| San Francisco | |
12,764
| |
13.7
|
%
| | |
2,238
| |
94.8
|
%
| |
1.2
|
%
| |
0.6
|
%
| |
1.5
|
%
| |
1.8
|
%
| |
(0.6
|
%)
|
| Los Angeles | |
11,139
| |
10.8
|
%
| | |
2,076
| |
95.2
|
%
| |
1.0
|
%
| |
2.5
|
%
| |
0.2
|
%
| |
0.9
|
%
| |
(0.1
|
%)
|
| Boston (2)
| |
7,722
| |
10.0
|
%
| | |
2,812
| |
95.1
|
%
| |
(0.5
|
%)
| |
17.4
|
%
| |
(8.3
|
%)
| |
0.2
|
%
| |
(0.7
|
%)
|
| South Florida | |
10,834
| |
7.6
|
%
| | |
1,564
| |
95.3
|
%
| |
1.9
|
%
| |
2.9
|
%
| |
1.4
|
%
| |
1.9
|
%
| |
0.0
|
%
|
| Seattle | |
7,733
| |
6.6
|
%
| | |
1,785
| |
95.0
|
%
| |
1.3
|
%
| |
5.9
|
%
| |
(0.9
|
%)
| |
1.1
|
%
| |
0.3
|
%
|
| Denver | |
6,935
| |
4.8
|
%
| | |
1,344
| |
95.2
|
%
| |
1.1
|
%
| |
(0.3
|
%)
| |
1.6
|
%
| |
1.1
|
%
| |
(0.1
|
%)
|
| San Diego | |
3,505
| |
3.3
|
%
| | |
1,926
| |
95.0
|
%
| |
(0.3
|
%)
| |
0.2
|
%
| |
(0.5
|
%)
| |
0.5
|
%
| |
(0.7
|
%)
|
| Orange County, CA | |
3,490
| |
3.1
|
%
| |
|
1,744
| |
95.1
|
%
| |
0.2
|
%
| |
2.6
|
%
| |
(0.7
|
%)
| |
0.9
|
%
| |
(0.7
|
%)
|
| Subtotal – Core | |
92,193
| |
94.8
|
%
| | |
2,220
| |
95.0
|
%
| |
0.5
|
%
| |
8.1
|
%
| |
(3.2
|
%)
| |
0.8
|
%
| |
(0.3
|
%)
|
| | | | | | | | | | | | | | | | | |
|
| Non-Core: | | | | | | | | | | | | | | | | | | |
|
Inland Empire, CA | |
3,081
| |
2.3
|
%
| | |
1,536
| |
95.5
|
%
| |
0.9
|
%
| |
(0.4
|
%)
| |
1.5
|
%
| |
1.3
|
%
| |
(0.3
|
%)
|
| Orlando | |
3,383
| |
1.8
|
%
| | |
1,141
| |
94.8
|
%
| |
0.3
|
%
| |
6.9
|
%
| |
(3.2
|
%)
| |
0.3
|
%
| |
0.0
|
%
|
|
All Other Markets
| |
2,837
| |
1.1
|
%
| |
|
1,124
| |
96.0
|
%
| |
0.9
|
%
| |
22.8
|
%
| |
(15.5
|
%)
| |
0.1
|
%
| |
0.8
|
%
|
| Subtotal – Non-Core | |
9,301
| |
5.2
|
%
| | |
1,267
| |
95.4
|
%
| |
0.7
|
%
| |
9.4
|
%
| |
(4.2
|
%)
| |
0.6
|
%
| |
0.1
|
%
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
| Total | |
101,494
| |
100.0
|
%
| |
$
|
2,132
| |
95.1
|
%
| |
0.5
|
%
| |
8.2
|
%
| |
(3.3
|
%)
| |
0.8
|
%
| |
(0.2
|
%)
|
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
|
Note: Same store results/statistics include 18,465 stabilized
apartment units acquired in the Archstone acquisition that are owned
and managed by the Company.
|
| | | | | | | | | | | | | | | | | |
|
|
(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 non-residential related income. Residential-only same
store revenues decreased in Boston 1.2% sequentially.
|
|
|
| Equity Residential |
|
| |
| |
| |
| |
| |
| | | | | | | | | |
|
| First Quarter 2014 vs. First Quarter 2013 |
| Same Store Operating Expenses for 100,984 Same Store Apartment
Units |
|
$ in thousands
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| | | | | | | | | |
% of Actual
|
| | | | | | | | | |
Q1 2014
|
| |
Actual
| |
Actual
| |
$
| |
%
| |
Operating
|
| |
Q1 2014
| |
Q1 2013
| |
Change
| |
Change
| |
Expenses
|
| | | | | | | | | |
|
|
Real estate taxes
| |
$
|
72,828
| |
$
|
68,603
| |
$
|
4,225
| | |
6.2
|
%
| |
33.4
|
%
|
|
On-site payroll (1)
| | |
43,674
| | |
45,499
| | |
(1,825
|
)
| |
(4.0
|
%)
| |
20.0
|
%
|
|
Utilities (2)
| | |
38,262
| | |
33,414
| | |
4,848
| | |
14.5
|
%
| |
17.5
|
%
|
|
Repairs and maintenance (3)
| | |
25,940
| | |
25,217
| | |
723
| | |
2.9
|
%
| |
11.9
|
%
|
|
Property management costs (4)
| | |
19,030
| | |
19,485
| | |
(455
|
)
| |
(2.3
|
%)
| |
8.7
|
%
|
|
Insurance
| | |
6,246
| | |
6,321
| | |
(75
|
)
| |
(1.2
|
%)
| |
2.9
|
%
|
|
Leasing and advertising
| | |
2,568
| | |
3,030
| | |
(462
|
)
| |
(15.2
|
%)
| |
1.2
|
%
|
|
Other on-site operating expenses (5)
| |
|
9,691
| |
|
9,916
| |
|
(225
|
)
| |
(2.3
|
%)
| |
4.4
|
%
|
| | | | | | | | | |
|
|
Same store operating expenses
| |
$
|
218,239
| |
$
|
211,485
| |
$
|
6,754
|
| |
3.2
|
%
| |
100.0
|
%
|
|
| |
| |
Note: Same store operating results include 18,465 stabilized
apartment units acquired in the Archstone acquisition that are owned
and managed by the Company.
|
| |
|
|
(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, 2014 |
|
(Amounts in thousands)
|
| | | | | | | | | | | | |
|
| | | | | | | | | | |
Weighted
| | |
| | | | | | | | |
Weighted
| |
Average
| | |
| | | | | | | | |
Average
| |
Maturities
| | |
| | | | |
Amounts (1)
| |
% of Total
| |
Rates (1)
| |
(years)
| | |
| | | | | | | | | | | | |
|
|
Secured
| |
$
|
5,167,626
| | | |
47.2
|
%
| |
4.22
|
%
| |
8.2
| | | |
|
Unsecured
| |
|
5,775,656
|
| |
|
52.8
|
%
| |
4.70
|
%
| |
4.3
|
| | |
| | | | | | | | | | | | |
|
|
Total
| |
$
|
10,943,282
|
| |
|
100.0
|
%
| |
4.47
|
%
| |
6.1
|
| | |
| | | | | | | | | | | | |
|
|
Fixed Rate Debt:
| | | | | | | | | | |
Secured – Conventional
| |
$
|
4,386,084
| | | |
40.1
|
%
| |
4.84
|
%
| |
6.7
| | | |
|
Unsecured – Public/Private
| |
|
4,727,656
|
| |
|
43.2
|
%
| |
5.49
|
%
| |
4.8
|
| | |
| | | | | | | | | | | | |
|
|
Fixed Rate Debt
| |
|
9,113,740
|
| |
|
83.3
|
%
| |
5.18
|
%
| |
5.7
|
| | |
| | | | | | | | | | | | |
|
|
Floating Rate Debt:
| | | | | | | | | | |
|
Secured – Conventional
| | |
56,868
| | | |
0.5
|
%
| |
2.21
|
%
| |
0.5
| | | |
|
Secured – Tax Exempt
| | |
724,674
| | | |
6.6
|
%
| |
0.63
|
%
| |
17.0
| | | |
|
Unsecured – Public/Private
| | |
750,000
| | | |
6.9
|
%
| |
1.33
|
%
| |
0.8
| | | |
|
Unsecured – Revolving Credit Facility
| |
|
298,000
|
| |
|
2.7
|
%
| |
0.98
|
%
| |
4.0
|
| | |
| | | | | | | | | | | | |
|
|
Floating Rate Debt
| |
|
1,829,542
|
| |
|
16.7
|
%
| |
1.02
|
%
| |
7.9
|
| | |
| | | | | | | | | | | | |
|
|
Total
| |
$
|
10,943,282
|
| |
|
100.0
|
%
| |
4.47
|
%
| |
6.1
|
| | |
| | | | | | | | | | | | |
|
|
(1) Net of the effect of any derivative instruments. Weighted
average rates are for the quarter ended March 31, 2014.
|
| | | | | | | | | | | | |
|
|
Note: The Company capitalized interest of approximately $12.8
million and $8.4 million during the quarters ended March 31, 2014
and 2013, respectively.
|
| | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | |
|
| Debt Maturity Schedule as of March 31, 2014 |
|
(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)
|
| | | | | | | | | | | | |
|
|
2014
| |
$
|
509,160
| |
$
|
48,883
| | |
$
|
558,043
| | |
5.1
|
%
| |
5.25
|
%
| |
5.02
|
%
|
|
2015
| | |
420,448
| | |
750,000
| |
(2)
| |
1,170,448
| | |
10.7
|
%
| |
6.28
|
%
| |
3.11
|
%
|
|
2016
| | |
1,193,250
| | |
—
| | | |
1,193,250
| | |
10.9
|
%
| |
5.34
|
%
| |
5.34
|
%
|
|
2017
| | |
1,346,734
| | |
456
| | | |
1,347,190
| | |
12.3
|
%
| |
6.16
|
%
| |
6.16
|
%
|
|
2018
| | |
84,359
| | |
395,659
| |
(3)
| |
480,018
| | |
4.4
|
%
| |
5.61
|
%
| |
1.75
|
%
|
|
2019
| | |
806,644
| | |
20,766
| | | |
827,410
| | |
7.6
|
%
| |
5.48
|
%
| |
5.35
|
%
|
|
2020
| | |
1,678,601
| | |
809
| | | |
1,679,410
| | |
15.3
|
%
| |
5.49
|
%
| |
5.49
|
%
|
|
2021
| | |
1,195,242
| | |
856
| | | |
1,196,098
| | |
10.9
|
%
| |
4.63
|
%
| |
4.64
|
%
|
|
2022
| | |
228,933
| | |
905
| | | |
229,838
| | |
2.1
|
%
| |
3.17
|
%
| |
3.18
|
%
|
|
2023
| | |
1,303,079
| | |
956
| | | |
1,304,035
| | |
11.9
|
%
| |
3.75
|
%
| |
3.75
|
%
|
|
2024+
| | |
297,925
| | |
674,988
| | | |
972,913
| | |
8.9
|
%
| |
6.25
|
%
| |
2.23
|
%
|
|
Premium/(Discount)
| |
|
49,365
| |
|
(64,736
|
)
| |
|
(15,371
|
)
| |
(0.1
|
%)
| |
N/A
|
| |
N/A
|
|
| | | | | | | | | | | | |
|
|
Total
| |
$
|
9,113,740
| |
$
|
1,829,542
|
| |
$
|
10,943,282
|
| |
100.0
|
%
| |
5.20
|
%
| |
4.46
|
%
|
| | | | | | | | | | | | |
|
|
(1) Net of the effect of any derivative instruments. Weighted
average rates are as of March 31, 2014.
|
| | | | | | | | | | | | |
|
|
(2) Includes the Company's $750.0 million unsecured term loan
facility that matures on January 11, 2015 and is subject to a
one-year extension option exercisable by the Company.
|
| | | | | | | | | | | | |
|
|
(3) Includes $298.0 million outstanding on the Company's unsecured
revolving credit facility. As of March 31, 2014, there was
approximately $2.17 billion available on this facility.
|
|
|
| Equity Residential |
| Unsecured Debt Summary as of March 31, 2014 |
|
(Amounts in thousands)
|
|
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | |
| | |
| | | | | | | | | | |
Unamortized
| | |
| | |
Coupon
| |
Due
| | | |
Face
| |
Premium/
| |
Net
|
| | |
Rate
| |
Date
| | | |
Amount
| |
(Discount)
| |
Balance
|
| | | | | | | | | | | | |
|
| Fixed Rate Notes: | | | | | | | | | | | | |
| | |
5.250%
| | 09/15/14 | | | |
$
|
500,000
| |
$
|
(28)
| |
$
|
499,972
|
| | |
6.584%
| | 04/13/15 | | | | |
300,000
| | |
(110)
| | |
299,890
|
| | |
5.125%
| | 03/15/16 | | | | |
500,000
| | |
(103)
| | |
499,897
|
| | |
5.375%
| | 08/01/16 | | | | |
400,000
| | |
(433)
| | |
399,567
|
| | |
5.750%
| | 06/15/17 | | | | |
650,000
| | |
(1,653)
| | |
648,347
|
| | |
7.125%
| | 10/15/17 | | | | |
150,000
| | |
(230)
| | |
149,770
|
| | |
4.750%
| | 07/15/20 | | | | |
600,000
| | |
(2,861)
| | |
597,139
|
| | |
4.625%
| | 12/15/21 | | | | |
1,000,000
| | |
(2,921)
| | |
997,079
|
| | |
3.000%
| | 04/15/23 | | | | |
500,000
| | |
(4,005)
| | |
495,995
|
| | |
7.570%
| | 08/15/26 | | | |
|
140,000
| |
|
—
| |
|
140,000
|
| | | | | | | | | | | | |
|
| | | | | | | | |
|
4,740,000
| |
|
(12,344)
| |
|
4,727,656
|
| Floating Rate Notes: | | | | | | | | | | | | |
|
Term Loan Facility
| |
LIBOR+1.20%
| | 01/11/15 | |
(1)(2)
| |
|
750,000
| |
|
—
| |
|
750,000
|
| | | | | | | | | | | | |
|
| | | | | | | | |
|
750,000
| |
|
—
| |
|
750,000
|
| | | | | | | | | | | | |
|
| Revolving Credit Facility: | |
LIBOR+1.05%
| | 04/01/18 | |
(1)(3)
| |
|
298,000
| |
|
—
| |
|
298,000
|
| | | | | | | | | | | | |
|
| Total Unsecured Debt | | | | | | | |
$
|
5,788,000
| |
$
|
(12,344)
| |
$
|
5,775,656
|
|
| |
|
(1)
| |
Facilities are private. All other unsecured debt is public.
|
| |
|
|
(2)
| |
Represents the Company's $750.0 million unsecured term loan
facility. 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 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.
|
| |
|
|
(3)
| |
Represents the Company's $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, 2014,
there was approximately $2.17 billion available on the Company's
unsecured revolving credit facility.
|
|
|
| Equity Residential |
|
|
| |
| |
| |
| Selected Unsecured Public Debt Covenants |
| | | | | |
|
| | | | March 31,
| | December 31,
|
| | | |
2014
| |
2013
|
| | | | | |
|
|
Total Debt to Adjusted Total Assets (not to exceed 60%)
| |
40.3
|
%
| |
40.0
|
%
|
| | | | | |
|
|
Secured Debt to Adjusted Total Assets (not to exceed 40%)
| |
19.0
|
%
| |
19.2
|
%
|
| | | | | |
|
|
Consolidated Income Available for Debt Service to
| | | | |
|
Maximum Annual Service Charges
| | | | |
|
(must be at least 1.5 to 1)
| |
3.12
| | |
3.07
| |
| | | | | |
|
|
Total Unsecured Assets to Unsecured Debt
| |
322.5
|
%
| |
326.9
|
%
|
|
(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, 2014 |
|
(Amounts in thousands except for share/unit and per share amounts)
|
| | | | | | | | | | | | | | |
|
|
Secured Debt
| | | | | | | | | |
$
|
5,167,626
| |
47.2%
| | |
|
Unsecured Debt
| | | | | | | | | |
|
5,775,656
| |
52.8%
| | |
| | | | | | | | | | | | | | |
|
| Total Debt | | | | | | | | | | | 10,943,282 | | 100.0% | | 33.4% |
| | | | | | | | | | | | | | |
|
|
Common Shares (includes Restricted Shares)
| | | | | | |
361,148,189
| | |
96.2%
| | | | | | |
|
Units (includes OP Units and LTIP Units)
| | | | | |
|
14,375,319
| |
|
3.8%
| | | | | | |
| | | | | | | | | | | | | | |
|
|
Total Shares and Units
| | | | | | |
375,523,508
| | |
100.0%
| | | | | | |
|
Common Share Price at March 31, 2014 | | | | | |
$
|
57.99
| | | | | | | | |
| | | | | | | | | | | |
21,776,608
| |
99.8%
| | |
|
Perpetual Preferred Equity (see below)
| | | | | | | | | |
|
50,000
| |
0.2%
| | |
| | | | | | | | | | | | | | |
|
| Total Equity | | | | | | | | | | | 21,826,608 | | 100.0% | | 66.6% |
| | | | | | | | | | | | | | |
|
| Total Market Capitalization | | | | | | | | | | $ | 32,769,890 | | | | 100.0% |
| | | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | |
|
| Perpetual Preferred Equity as of March 31, 2014 |
|
(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
| | 12/10/26 | |
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 |
|
| |
| |
| |
Q1 2014
| |
Q1 2013
|
| | | |
|
| Weighted Average Amounts Outstanding for Net Income Purposes: | | | | |
|
Common Shares - basic
| |
360,470,366
| |
337,532,330
|
|
Shares issuable from assumed conversion/vesting of (1):
| | | | |
|
- OP Units
| |
13,730,577
| |
—
|
|
- long-term compensation shares/units
| |
2,183,239
| |
—
|
| | | |
|
|
Total Common Shares and Units - diluted (1)
| |
376,384,182
| |
337,532,330
|
| | | |
|
| Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes: | | | | |
|
Common Shares - basic
| |
360,470,366
| |
337,532,330
|
|
OP Units - basic
| |
13,730,577
| |
13,722,414
|
| | | |
|
|
Total Common Shares and OP Units - basic
| |
374,200,943
| |
351,254,744
|
|
Shares issuable from assumed conversion/vesting of:
| | | | |
|
- long-term compensation shares/units
| |
2,183,239
| |
2,400,834
|
| | | |
|
|
Total Common Shares and Units - diluted
| |
376,384,182
| |
353,655,578
|
| | | |
|
| Period Ending Amounts Outstanding: | | | | |
|
Common Shares (includes Restricted Shares)
| |
361,148,189
| |
360,063,675
|
|
Units (includes OP Units and LTIP Units)
| |
14,375,319
| |
14,226,725
|
| | | |
|
|
Total Shares and Units
| |
375,523,508
| |
374,290,400
|
|
| |
|
(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 quarter ended March 31,
2013.
|
|
|
| Equity Residential |
| Partially Owned Entities as of March 31, 2014 |
|
(Amounts in thousands except for project and apartment unit amounts)
|
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | | |
Consolidated
| |
Unconsolidated
|
| | | |
Development Projects
| | | | | |
Development Projects
| | | | |
| | | |
Held for
| | | | | | | |
Held for
| |
| |
| | |
| | | |
and/or Under
| |
Completed, Not
| | | | | |
and/or Under
| |
Completed, Not
| | | | |
| | | |
Development (4)
| |
Stabilized (5)
| |
Operating
| |
Total
| |
Development (4)
| |
Stabilized (5)
| |
Operating
| |
Total
|
| | | | | | | | | | | | | | | | | |
|
|
Total projects (1)
| |
|
—
|
| |
|
1
| |
|
19
|
| |
|
20
|
| |
|
—
|
| |
|
3
|
| |
|
1
|
| |
|
4
|
|
| | | | | | | | | | | | | | | | | |
|
|
Total apartment units (1)
| |
|
—
|
| |
|
268
| |
|
3,752
|
| |
|
4,020
|
| |
|
—
|
| |
|
1,333
|
| |
|
336
|
| |
|
1,669
|
|
| | | | | | | | | | | | | | | | | |
|
|
Operating information for the quarter ended 3/31/14 (at 100%):
| | | | | | | | | | | | | | | | |
|
Operating revenue
| |
$
|
—
| | |
$
|
468
| |
$
|
21,308
| | |
$
|
21,776
| | |
$
|
—
| | |
$
|
4,528
| | |
$
|
1,353
| | |
$
|
5,881
| |
|
Operating expenses
| |
|
77
|
| |
|
204
| |
|
6,453
|
| |
|
6,734
|
| |
|
44
|
| |
|
1,917
|
| |
|
559
|
| |
|
2,520
|
|
|
Net operating (loss) income
| | |
(77
|
)
| | |
264
| | |
14,855
| | | |
15,042
| | | |
(44
|
)
| | |
2,611
| | | |
794
| | | |
3,361
| |
|
Depreciation
| | |
—
| | | |
—
| | |
5,363
| | | |
5,363
| | | |
—
| | | |
2,782
| | | |
447
| | | |
3,229
| |
|
General and administrative/other
| |
|
(9
|
)
| |
|
116
| |
|
12
|
| |
|
119
|
| |
|
—
|
| |
|
12
|
| |
|
43
|
| |
|
55
|
|
|
Operating (loss) income
| | |
(68
|
)
| | |
148
| | |
9,480
| | | |
9,560
| | | |
(44
|
)
| | |
(183
|
)
| | |
304
| | | |
77
| |
|
Interest and other income
| | |
—
| | | |
—
| | |
3
| | | |
3
| | | |
—
| | | |
—
| | | |
—
| | | |
—
| |
|
Other expenses
| | |
(42
|
)
| | |
—
| | |
(7
|
)
| | |
(49
|
)
| | |
—
| | | |
—
| | | |
—
| | | |
—
| |
|
Interest:
| | | | | | | | | | | | | | | | |
|
Expense incurred, net
| | |
—
| | | |
—
| | |
(3,887
|
)
| | |
(3,887
|
)
| | |
—
| | | |
(1,992
|
)
| | |
(279
|
)
| | |
(2,271
|
)
|
|
Amortization of deferred financing costs
| |
|
—
|
| |
|
—
| |
|
(88
|
)
| |
|
(88
|
)
| |
|
—
|
| |
|
(3
|
)
| |
|
—
|
| |
|
(3
|
)
|
| | | | | | | | | | | | | | | | | |
|
|
(Loss) income before income and other taxes and (loss) from
| | | | | | | | | | | | | | | | |
|
investments in unconsolidated entities
| | |
(110
|
)
| | |
148
| | |
5,501
| | | |
5,539
| | | |
(44
|
)
| | |
(2,178
|
)
| | |
25
| | | |
(2,197
|
)
|
|
Income and other tax (expense) benefit
| | |
—
| | | |
—
| | |
(36
|
)
| | |
(36
|
)
| | |
—
| | | |
—
| | | |
—
| | | |
—
| |
|
(Loss) from investments in unconsolidated entities
| | |
—
| | | |
—
| | |
(419
|
)
| | |
(419
|
)
| | |
—
| | | |
—
| | | |
—
| | | |
—
| |
| | | |
| |
| |
| |
| |
| |
| |
| |
|
|
Net (loss) income
| |
$
|
(110
|
)
| |
$
|
148
| |
$
|
5,046
|
| |
$
|
5,084
|
| |
$
|
(44
|
)
| |
$
|
(2,178
|
)
| |
$
|
25
|
| |
$
|
(2,197
|
)
|
| | | | | | | | | | | | | | | | | |
|
|
Debt - Secured (2):
| | | | | | | | | | | | | | | | |
|
EQR Ownership (3)
| |
$
|
—
| | |
$
|
—
| |
$
|
281,974
| | |
$
|
281,974
| | |
$
|
808
| | |
$
|
56,716
| | |
$
|
6,082
| | |
$
|
63,606
| |
|
Noncontrolling Ownership
| |
|
—
|
| |
|
—
| |
|
78,243
|
| |
|
78,243
|
| |
|
15,346
|
| |
|
119,516
|
| |
|
24,328
|
| |
|
159,190
|
|
| | | | | | | | | | | | | | | | | |
|
|
Total (at 100%)
| |
$
|
—
|
| |
$
|
—
| |
$
|
360,217
|
| |
$
|
360,217
|
| |
$
|
16,154
|
| |
$
|
176,232
|
| |
$
|
30,410
|
| |
$
|
222,796
|
|
| | | | | | | | | | | | | | | | | |
|
|
(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 50% of
the current $16.2 million outstanding debt balance on one
unconsolidated development project.
|
| | | | | | | | | | | | | | | | | |
|
|
(3)
| |
Represents the Company's current equity ownership interest.
|
| | | | | | | | | | | | | | | | | |
|
|
(4)
| | See Projects Under Development - Partially Owned on page 19 for
consolidated projects and Projects Under Development -
Unconsolidated on page 20 for further information.
|
| | | | | | | | | | | | | | | | | |
|
|
(5)
| |
Projects included here are substantially complete. However, they may
still require additional exterior and interior work for all units to
be available for leasing. See Projects Completed, Not Stabilized -
Partially Owned on page 19 for consolidated projects and Projects
Completed, Not Stabilized - Unconsolidated on page 20 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 $79.3 million at March 31, 2014. The
ventures are owned 60% by the Company and 40% by AVB.
|
|
|
| Equity Residential |
| Consolidated Development and Lease-Up Projects as of March 31,
2014 |
|
(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: | | | | | | | | | | | | | | | | | | | | | | |
| Residences at Westgate II (formerly Westgate III)
| | Pasadena, CA | |
88
| |
$
|
54,037
| |
$
|
33,514
| |
$
|
33,514
| |
$
|
—
| | |
44%
| | |
—
| |
—
| |
Q3 2014
| |
Q1 2015
|
| Residences at Westgate I (formerly Westgate II)
| | Pasadena, CA | |
252
| | |
125,293
| | |
108,583
| | |
108,583
| | |
—
| | |
81%
| | |
9%
| |
6%
| |
Q3 2014
| |
Q2 2015
|
|
170 Amsterdam (2)
| | New York, NY | |
236
| | |
110,892
| | |
58,457
| | |
58,457
| | |
—
| | |
50%
| | |
—
| |
—
| |
Q1 2015
| |
Q1 2016
|
|
Azure (at Mission Bay)
| | San Francisco, CA | |
273
| | |
189,090
| | |
80,257
| | |
80,257
| | |
—
| | |
35%
| | |
—
| |
—
| |
Q3 2015
| |
Q4 2016
|
| West Seattle | | Seattle, WA | |
206
| | |
67,112
| | |
20,745
| | |
20,745
| | |
—
| | |
8%
| | |
—
| |
—
| |
Q4 2015
| |
Q3 2016
|
| Tallman | | Seattle, WA | |
303
| | |
84,277
| | |
29,241
| | |
29,241
| | |
—
| | |
14%
| | |
—
| |
—
| |
Q4 2015
| |
Q2 2017
|
| Village at Howard Hughes | | Los Angeles, CA | |
545
| | |
193,231
| | |
56,006
| | |
56,006
| | |
—
| | |
2%
| | |
—
| |
—
| |
Q2 2016
| |
Q2 2017
|
|
Millikan
| | Irvine, CA | |
344
| | |
102,331
| | |
17,490
| | |
17,490
| | |
—
| | |
1%
| | |
—
| |
—
| |
Q2 2016
| |
Q3 2017
|
| Potrero | | San Francisco, CA | |
453
| | |
224,474
| | |
46,094
| | |
46,094
| | |
—
| | |
1%
| | |
—
| |
—
| |
Q2 2016
| |
Q3 2017
|
| Tasman | | San Jose, CA | |
554
| | |
214,923
| | |
70,287
| | |
70,287
| | |
—
| | |
19%
| | |
—
| |
—
| |
Q2 2016
| |
Q2 2018
|
|
Rincon Hill
| | San Francisco, CA | |
348
| |
|
287,454
| |
|
54,885
| |
|
54,885
| |
|
—
| | |
1%
| | |
—
| |
—
| |
Q3 2016
| |
Q1 2018
|
| Projects Under Development - Wholly Owned
| | | |
3,602
| | |
1,653,114
| | |
575,559
| | |
575,559
| | |
—
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
Projects Under Development - Partially
Owned: | | | | | | | | | | | | | | | | | | | | | | |
| 400 Park Avenue South (3)
| | New York, NY | |
269
| |
|
251,961
| |
|
186,731
| |
|
186,731
| |
|
—
| | |
70%
| | |
—
| |
—
| |
Q2 2015
| |
Q1 2016
|
| Projects Under Development - Partially Owned
| | | |
269
| | |
251,961
| | |
186,731
| | |
186,731
| | |
—
| | | | | | | | | | |
| | | | | |
| |
| |
| |
| |
| | | | | | | | | | |
| Projects Under Development | | | | 3,871 | |
| 1,905,075 | |
| 762,290 | |
| 762,290 | |
| — | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
Completed Not Stabilized - Wholly Owned
(4): | | | | | | | | | | | | | | | | | | | | | | |
| Gaithersburg Station (5)
| | Gaithersburg, MD | |
389
| | |
93,000
| | |
92,044
| | |
—
| | |
89,269
| | | | |
96%
| |
95%
| |
Completed
| |
Q2 2014
|
|
Breakwater at Marina Del Rey (2) (6)
| | Marina Del Rey, CA | |
224
| | |
87,949
| | |
87,595
| | |
—
| | |
27,000
| | | | |
91%
| |
89%
| |
Completed
| |
Q3 2014
|
|
Oasis at Delray Beach II
| | Delray Beach, FL | |
128
| | |
22,239
| | |
21,960
| | |
—
| | |
—
| | | | |
77%
| |
70%
| |
Completed
| |
Q3 2014
|
|
Reserve at Town Center III
| | Mill Creek, WA | |
95
| | |
21,330
| | |
20,874
| | |
—
| | |
—
| | | | |
39%
| |
26%
| |
Completed
| |
Q4 2014
|
|
1111 Belle Pre (formerly The Madison)
| | Alexandria, VA | |
360
| | |
114,072
| | |
108,438
| | |
—
| | |
—
| | | | |
48%
| |
39%
| |
Completed
| |
Q2 2015
|
|
Jia (formerly Chinatown Gateway)
| | Los Angeles, CA | |
280
| | |
92,920
| | |
88,403
| | |
—
| | |
—
| | | | |
17%
| |
13%
| |
Completed
| |
Q3 2015
|
| Urbana (formerly Market Street Landing)
| | Seattle, WA | |
287
| |
|
90,024
| |
|
82,807
| |
|
—
| |
|
—
| | | | |
18%
| |
13%
| |
Completed
| |
Q3 2015
|
|
Projects Completed Not Stabilized - Wholly Owned
| | | |
1,763
| | |
521,534
| | |
502,121
| | |
—
| | |
116,269
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
Completed Not Stabilized - Partially
Owned (4): | | | | | | | | | | | | | | | | | | | | | | |
|
Park Aire (formerly Enclave at Wellington) (7)
| | Wellington, FL
| |
268
| |
|
50,000
| |
|
48,319
| |
|
—
| |
|
—
| | | | |
56%
| |
51%
| |
Completed
| |
Q1 2015
|
|
Projects Completed Not Stabilized - Partially Owned
| | | |
268
| | |
50,000
| | |
48,319
| | |
—
| | |
—
| | | | | | | | | | |
| | | | | |
| |
| |
| |
| |
| | | | | | | | | | |
| Projects Completed Not Stabilized | | | | 2,031 | |
| 571,534 | |
| 550,440 | |
| — | |
| 116,269 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Total Consolidated Projects | | | | 5,902 | | $ | 2,476,609 | | $ | 1,312,730 | | $ | 762,290 | | $ | 116,269 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Land Held for Development | | | | N/A | |
| N/A | | $ | 295,357 | | $ | 295,357 | | $ | — | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
Total Capital
| |
Q1 2014
| | | | | | |
| NOI CONTRIBUTION FROM CONSOLIDATED DEVELOPMENT PROJECTS | | | |
Cost (1)
| |
NOI
| | | | | | |
| Projects Under Development | | | |
$
|
1,905,075
| |
$
|
(60)
| | | | | | |
|
Completed Not Stabilized
| | | | |
571,534
| | |
2,109
| | | | | | |
|
Completed and Stabilized During the Quarter
| | | |
|
—
| |
|
—
| | | | | | |
|
Total Consolidated Development NOI Contribution
| | | |
$
|
2,476,609
| |
$
|
2,049
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
(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)
| |
170 Amsterdam and Breakwater at Marina Del Rey – The land under
these developments are subject to long term ground leases.
|
| |
|
|
(3)
| | 400 Park Avenue South – The Company is jointly developing with Toll
Brothers (NYSE: TOL) a project 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 $102.9 million for their allocated share of
the project.
|
| |
|
|
(4)
| |
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.
|
| |
|
|
(5)
| | Gaithersburg Station – This project has a non-recourse loan with a
current outstanding balance of $89.3 million, bears interest at
5.24% and matures April 1, 2053.
|
| |
|
|
(6)
| |
Breakwater at Marina Del Rey – The Company has substantially
completed renovations of this property. The non-recourse loan has a
current outstanding balance of $27.0 million, bears interest at
LIBOR plus 1.75% and matures September 1, 2014.
|
| |
|
|
(7)
| |
Park Aire – The Company has a 95.0% ownership interest in this
project.
|
|
|
| Equity Residential |
| Unconsolidated Development and Lease-Up Projects as of March 31,
2014 |
|
(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: | | | | | | | | | | | | | | | | | | | | | | | | |
|
1333 Powell (formerly Parkside at Emeryville) (2)
| | Emeryville, CA | |
5.0%
| |
176
| |
$
|
75,000
| |
$
|
49,332
| |
$
|
49,332
| |
$
|
16,154
| |
58%
| |
—
| |
—
| |
Q4 2014
| |
Q4 2015
|
| Projects Under Development - Unconsolidated
| | | | | |
176
| | |
75,000
| | |
49,332
| | |
49,332
| | |
16,154
| | | | | | | | | | |
| | | | | | | |
| |
| |
| |
| |
| | | | | | | | | | |
| Projects Under Development | | | | | | 176 | |
| 75,000 | |
| 49,332 | |
| 49,332 | |
| 16,154 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
Completed Not Stabilized - Unconsolidated
(3): | | | | | | | | | | | | | | | | | | | | | | | | |
|
San Norterra (4)
| | Phoenix, AZ | |
85.0%
| |
388
| | |
53,250
| | |
52,643
| | |
—
| | |
33,030
| | | |
100%
| |
97%
| |
Completed
| |
Q2 2014
|
|
Nexus Sawgrass (formerly Sunrise Village) (5)
| | Sunrise, FL | |
20.0%
| |
501
| | |
79,000
| | |
78,506
| | |
—
| | |
48,189
| | | |
84%
| |
78%
| |
Completed
| |
Q3 2014
|
|
Domain (5)
| | San Jose, CA | |
20.0%
| |
444
| |
|
154,570
| |
|
154,114
| |
|
—
| |
|
95,013
| | | |
64%
| |
59%
| |
Completed
| |
Q3 2015
|
|
Projects Completed Not Stabilized - Unconsolidated
| | | | | | 1,333 | | | 286,820 | | | 285,263 | | | — | | | 176,232 | | | | | | | | | | |
| | | | | | | |
| |
| |
| |
| |
| | | | | | | | | | |
| Projects Completed Not Stabilized | | | | | | 1,333 | |
| 286,820 | |
| 285,263 | |
| — | |
| 176,232 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Total Unconsolidated Projects | | | | | | 1,509 | | $ | 361,820 | | $ | 334,595 | | $ | 49,332 | | $ | 192,386 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
(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)
| |
1333 Powell – Construction of this project is being partially funded
with a construction loan. 1333 Powell has a maximum debt commitment
of $39.5 million, the loan bears 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.
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
(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)
| |
San Norterra – Construction of this project was partially funded
with a non-recourse construction loan. San Norterra has a maximum
debt commitment of $34.8 million, the loan bears interest at LIBOR
plus 2.00% and matures January 6, 2015.
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
(5)
| |
Nexus Sawgrass and Domain – 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
$233.6 million and construction was predominantly funded with two
separate long-term, non-recourse secured loans from the partner. The
Company was 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.
|
|
|
| Equity Residential |
| Repairs and Maintenance Expenses and Capital Expenditures to Real
Estate |
| For the Quarter Ended March 31, 2014 |
|
(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
| |
Payroll
| |
Apartment
| | | |
Apartment
| |
Replacements
| |
Apartment
| |
Improvements
| |
Apartment
| | | |
Apartment
| | | |
Grand
| |
Apartment
|
| | | |
Units (1)
| |
Expense (2)
| |
Unit
| |
(3)
| |
Unit
| |
Total
| |
Unit
| |
(4)
| |
Unit
| |
(5)
| |
Unit
| |
Total
| |
Unit
| | | |
Total
| |
Unit
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Same Store Properties (6)
| |
100,984
| |
$
|
25,940
| |
$
|
257
| |
$
|
21,067
| |
$
|
209
| |
$
|
47,007
| |
$
|
466
| |
$
|
14,926
| |
$
|
148
| |
$
|
16,220
| |
$
|
160
| |
$
|
31,146
| |
$
|
308
| |
(9)
| |
$
|
78,153
| |
$
|
774
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Non-Same Store Properties (7)
| |
3,825
| | |
530
| | |
197
| | |
308
| | |
114
| | |
838
| | |
311
| | |
45
| | |
17
| | |
999
| | |
370
| | |
1,044
| | |
387
| | | | |
1,882
| | |
698
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Other (8)
| |
—
| |
|
—
| | | |
|
143
| | | |
|
143
| | | |
|
1
| | | |
|
—
| | | |
|
1
| | | | | |
|
144
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Total
| | | |
104,809
| |
$
|
26,470
| | | |
$
|
21,518
| | | |
$
|
47,988
| | | |
$
|
14,972
| | | |
$
|
17,219
| | | |
$
|
32,191
| | | | | |
$
|
80,179
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
(1)
| |
Total Apartment Units - Excludes 1,669 unconsolidated apartment
units and 5,059 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 $7.9 million spent in Q1 2014 on apartment
unit renovations/rehabs (primarily kitchens and baths) on 980 same
store apartment units (equating to about $8,100 per apartment unit
rehabbed) designed to reposition these assets for higher rental
levels in their respective markets. In 2014, the Company expects
to spend approximately $45.0 million for all unit renovation/rehab
costs (primarily on same store properties) at a weighted average
cost of $8,500 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, 2013, less
properties subsequently sold. Also includes 18,465 stabilized
apartment units acquired in the Archstone acquisition that are owned
and managed by the Company.
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
(7)
| | Non-Same Store Properties - Primarily includes all properties
acquired during 2013 and 2014, plus any properties in lease-up and
not stabilized as of January 1, 2013, but excludes 18,465 stabilized
apartment units acquired in the Archstone acquisition that are owned
and managed by the Company. Per apartment unit amounts are based on
a weighted average of 2,698 apartment units.
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
(8)
| |
Other - Primarily includes expenditures for properties sold.
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
(9)
| |
For 2014, the Company estimates that it will spend approximately
$1,700 per apartment unit of capital expenditures, inclusive of
apartment unit renovation/rehab costs, or $1,250 per apartment unit
excluding apartment unit renovation/rehab costs.
|
|
|
| Equity Residential |
| Discontinued Operations |
|
(Amounts in thousands)
|
|
| |
| |
| |
Quarter Ended
|
| | March 31,
|
| |
2014
| |
2013
|
| | | |
|
| REVENUES | | | | |
|
Rental income
| |
$
|
1,023
|
| |
$
|
81,782
|
|
| | | |
|
|
Total revenues
| |
|
1,023
|
| |
|
81,782
|
|
| | | |
|
| EXPENSES (1) | | | | |
|
Property and maintenance
| | |
48
| | | |
20,424
| |
|
Real estate taxes and insurance
| | |
13
| | | |
8,594
| |
|
Property management
| | |
—
| | | |
1
| |
|
Depreciation
| | |
—
| | | |
23,816
| |
|
General and administrative
| |
|
5
|
| |
|
8
|
|
| | | |
|
|
Total expenses
| |
|
66
|
| |
|
52,843
|
|
| | | |
|
|
Discontinued operating income
| | |
957
| | | |
28,939
| |
| | | |
|
|
Interest and other income
| | |
35
| | | |
52
| |
|
Other expenses
| | |
—
| | | |
(2
|
)
|
|
Interest (2):
| | | | |
|
Expense incurred, net
| | |
—
| | | |
(1,252
|
)
|
|
Amortization of deferred financing costs
| | |
—
| | | |
(228
|
)
|
|
Income and other tax (expense) benefit
| |
|
(29
|
)
| |
|
(58
|
)
|
| | | |
|
|
Discontinued operations
| | |
963
| | | |
27,451
| |
|
Net gain on sales of discontinued operations
| |
|
71
|
| |
|
1,198,922
|
|
| | | |
|
|
Discontinued operations, net
| |
$
|
1,034
|
| |
$
|
1,226,373
|
|
|
|
|
(1) Includes expenses paid in the current period for properties sold
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.
|
|
|
| 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 2014
|
| | | | |
to Actual Q1 2014
|
| | | | |
Amounts
| |
Per Share
|
|
Guidance Q1 2014 Normalized FFO - Diluted (2) (3)
| | | |
$
|
264,638
| | |
$
|
0.704
| |
|
Property NOI
| | | | |
807
| | | |
0.002
| |
|
Other
| | | |
|
210
|
| |
|
—
|
|
| | | | | | |
|
|
Actual Q1 2014 Normalized FFO - Diluted (2) (3)
| | | |
$
|
265,655
|
| |
$
|
0.706
|
|
| | | | | | |
|
|
|
|
|
|
|
|
|
|
| | | | | | |
|
| Non-Comparable Items – Adjustments from FFO to Normalized FFO (2)
(3) |
| | | | | | |
|
| | |
Quarter Ended March 31,
|
| | |
2014
| |
2013
| |
Variance
|
| | | | | | |
|
|
Impairment
| |
$
|
—
|
| |
$
|
—
|
| |
$
|
—
|
|
|
Asset impairment and valuation allowances
| |
|
—
|
| |
|
—
|
| |
|
—
|
|
| | | | | | |
|
|
Archstone direct acquisition costs (other expenses) (A)
| | |
(30
|
)
| | |
19,092
| | | |
(19,122
|
)
|
|
Archstone indirect costs (loss from investments in unconsolidated
entities) (B)
| | |
3
| | | |
46,011
| | | |
(46,008
|
)
|
|
Property acquisition costs (other expenses)
| | |
49
| | | |
32
| | | |
17
| |
|
Write-off of pursuit costs (other expenses)
| |
|
452
|
| |
|
2,533
|
| |
|
(2,081
|
)
|
|
Property acquisition costs and write-off of pursuit costs
| |
|
474
|
| |
|
67,668
|
| |
|
(67,194
|
)
|
| | | | | | |
|
|
Prepayment premiums/penalties (interest expense)
| | |
—
| | | |
71,443
| | | |
(71,443
|
)
|
|
Write-off of unamortized deferred financing costs (interest expense)
| | |
—
| | | |
4,123
| | | |
(4,123
|
)
|
|
Write-off of unamortized (premiums)/discounts/OCI (interest expense)
| |
|
—
|
| |
|
4,077
|
| |
|
(4,077
|
)
|
|
Debt extinguishment (gains) losses, including prepayment penalties,
preferred share
| | | | | | | | | | | | |
|
redemptions and non-cash convertible debt discounts
| |
|
—
|
| |
|
79,643
|
| |
|
(79,643
|
)
|
| | | | | | |
|
|
Net loss on sales of land parcels
| | |
30
| | | |
—
| | | |
30
| |
|
(Gain) on sale of Equity Corporate Housing (ECH)
| | |
—
| | | |
(250
|
)
| | |
250
| |
|
(Gain) on sale of investment securities
| |
|
(21
|
)
| |
|
—
|
| |
|
(21
|
)
|
|
(Gains) losses on sales of non-operating assets, net of income and
other tax expense (benefit)
| |
|
9
|
| |
|
(250
|
)
| |
|
259
|
|
| | | | | | |
|
| | | | | | |
|
|
Insurance/litigation settlement proceeds (interest and other income)
| |
|
(463
|
)
| |
|
—
|
| |
|
(463
|
)
|
|
Other miscellaneous non-comparable items
| |
|
(463
|
)
| |
|
—
|
| |
|
(463
|
)
|
| | |
| |
| |
|
|
Non-comparable items – Adjustments from FFO to Normalized FFO (2) (3)
| |
$
|
20
|
| |
$
|
147,061
|
| |
$
|
(147,041
|
)
|
|
|
|
(A) Archstone direct acquisition costs primarily includes items such
as investment banking and legal/accounting fees that were incurred
directly by the Company.
|
|
| |
|
(B) Archstone indirect costs primarily includes the Company's 60%
share of items such as severance and retention obligations, office
leases and German operations/sales that were incurred indirectly
through the Company's interest in unconsolidated joint ventures with
AvalonBay.
|
|
|
|
Note: See page 25 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 25 for the definitions, the footnotes referenced below and the
reconciliations of EPS to FFO and Normalized FFO.
|
| | | | |
|
| | | | |
|
| | | | |
|
2014 Normalized FFO Guidance (per share
diluted) |
| | | | |
|
| | | Q2 2014 | | 2014 |
| | | | |
|
|
Expected Normalized FFO (2) (3)
| | $0.74 to $0.78 | | $3.03 to $3.13 |
| | | | |
|
2014 Same Store Assumptions |
| | | | |
|
|
Physical occupancy
| | | | |
95.4 %
|
|
Revenue change
| | | | |
3.0% to 4.0%
|
|
Expense change
| | | | |
2.0% to 3.0%
|
|
NOI change
| | | | |
3.50% to 4.75%
|
| | | | |
|
|
(Note: The same store guidance above includes 18,465 stabilized
apartment units acquired in the Archstone acquisition that are owned
and managed by the Company. 30 basis point change in NOI percentage
= $0.01 per share change in EPS/FFO/Normalized FFO)
|
| | | | |
|
2014 Transaction Assumptions |
| | | | |
|
|
Consolidated rental acquisitions
| | | | | $500.0 million |
|
Consolidated rental dispositions
| | | | | $500.0 million |
|
Capitalization rate spread
| | | | |
100 basis points
|
| | | | |
|
2014 Debt Assumptions |
| | | | |
|
|
Weighted average debt outstanding
| | | | $10.9 billion to $11.2 billion |
|
Weighted average interest rate (reduced for capitalized interest)
| | |
4.12 %
|
|
Interest expense
| | | | | $449.1 million to $461.4 million |
| | | | |
|
2014 Other Guidance Assumptions |
| | | | |
|
|
General and administrative expense
| | | | $50.0 million to $52.0 million |
|
Interest and other income
| | | | | $0.5 million |
|
Income and other tax expense
| | | | | $1.0 million to $2.0 million |
|
Debt offerings
| | | | | $500.0 million |
|
Equity ATM share offerings
| | | | |
No amounts budgeted
|
|
Preferred share offerings
| | | | |
No amounts budgeted
|
|
Weighted average Common Shares and Units - Diluted
| | |
376.8 million
|
|
|
| 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, 23
and 24 |
| | | | | | | | | |
|
| | | | | | | |
Expected
| |
Expected
|
| | | |
Expected Q1 2014
| |
Q2 2014
| |
2014
|
| | | |
Amounts
| |
Per Share
| |
Per Share
| |
Per Share
|
| | | | | | | | | |
|
| |
Expected Earnings - Diluted (5)
| |
$
|
93,769
| | |
$
|
0.249
| | | $0.38 to $0.42 | | $1.55 to $1.65 |
| |
Add: Expected depreciation expense
| | |
171,127
| | | |
0.455
| | |
0.47
| | |
1.95
| |
| |
Less: Expected net gain on sales (5)
| |
|
—
|
| |
|
—
|
| |
(0.12
|
)
| |
(0.49
|
)
|
| | | | | | | | | |
|
| |
Expected FFO - Diluted (1) (3)
| | |
264,896
| | | |
0.704
| | |
0.73 to 0.77
| | $3.01 to $3.11 |
| | | | | | | | | |
|
| |
Asset impairment and valuation allowances
| | |
—
| | | |
—
| | |
—
| | |
—
| |
| |
Property acquisition costs and write-off of pursuit costs
| | |
(258
|
)
| | |
—
| | |
0.01
| | |
0.02
| |
| |
Debt extinguishment (gains) losses, including prepayment penalties,
preferred share redemptions and non-cash convertible debt discounts
| | |
—
| | | |
—
| | |
—
| | |
—
| |
| |
(Gains) losses on sales of non-operating assets, net of income and
other tax
expense (benefit)
| | |
—
| | | |
—
| | |
—
| | |
—
| |
| |
Other miscellaneous non-comparable items
| |
|
—
|
| |
|
—
|
| |
—
|
| |
—
|
|
| | | | | | | | | |
|
| |
Expected Normalized FFO - Diluted (2) (3)
| |
$
|
264,638
|
| |
$
|
0.704
|
| | $0.74 to $0.78 | | $3.03 to $3.13 |
| | | | | | | | | |
|
| Definitions and Footnotes for Pages 5, 23 and 24 |
| | | | | | | | | |
|
|
(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 9 |
| | | | | | | | | |
|
|
The following tables present reconciliations of operating income per
the consolidated statements of operations to NOI for the First
Quarter 2014 Same Store Properties:
|
| | | | | | | | | |
|
| | | |
Quarter Ended March 31,
| | | | |
| | | |
2014
| |
2013
| | | | |
| | | | | | | | | |
|
|
Operating income
| |
$
|
199,252
| | |
$
|
104,246
| | | | | |
|
Adjustments:
| | | | | | | | |
| |
Archstone pre-ownership operating results
| | |
—
| | | |
55,694
| | | | | |
| |
Non-same store operating results
| | |
(5,301
|
)
| | |
6,824
| | | | | |
| |
Fee and asset management revenue
| | |
(2,717
|
)
| | |
(2,160
|
)
| | | | |
| |
Fee and asset management expense
| | |
1,662
| | | |
1,646
| | | | | |
| |
Depreciation
| | |
185,167
| | | |
196,222
| | | | | |
| |
General and administrative
| |
|
17,576
|
| |
|
16,495
|
| | | | |
| | | | | | | | | |
|
|
Same store NOI
| |
$
|
395,639
|
| |
$
|
378,967
|
| | | | |
| | | | | | | | | | | |
|
Equity Residential
Marty McKenna, 312-928-1901
Source: Equity Residential