Continued Strong Demand and Improved Delinquency Drives Results Above Expectations
CHICAGO--(BUSINESS WIRE)--
Equity Residential (NYSE: EQR) today reported results for the quarter ended March 31, 2023.
First Quarter 2023 Results
All per share results are reported as available to common shares/units on a diluted basis.
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Quarter Ended March 31,
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2023
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2022
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$ Change
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% Change
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Earnings Per Share (EPS)
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$
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0.56
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$
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0.19
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$
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0.37
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194.7
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%
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Funds from Operations (FFO) per share
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$
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0.85
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$
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0.77
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$
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0.08
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10.4
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%
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Normalized FFO per share
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$
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0.87
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$
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0.77
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$
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0.10
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13.0
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%
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“We had a very good first quarter, with our same store revenue results benefitting from continued robust demand as well as improvements in delinquency in Southern California that exceeded our expectations,” said Mark J. Parrell, Equity Residential’s President and CEO. “Our business continues to benefit from durable employment in our affluent renter demographic and limited competition from both new apartment supply and single family home ownership.”
Recent Highlights
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The Company reported a 194.7% increase in EPS, 10.4% increase in FFO per share and 13.0% increase in Normalized FFO per share during the first quarter of 2023 compared to the same period of 2022.
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Same store revenue increased 9.2% for the first quarter of 2023 compared to the first quarter of 2022, which was better than anticipated due to continued healthy demand and lower than anticipated Bad Debt, Net.
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Same store expense growth for the first quarter of 2023 compared to the first quarter of 2022 was 7.2%, which was higher than expected primarily due to repairs and maintenance expenses resulting from the severe California rain storms and increased property-related legal and administrative expenses. Despite this elevated level, the Company believes it will still attain 4.0%-5.0% same store expense growth for 2023 as a result of lower anticipated growth in the second half of the year.
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During the first quarter of 2023, the Company sold a small portfolio of seven properties in Los Angeles, consisting of 247 apartment units, for approximately $135.3 million. Subsequent to the end of the first quarter of 2023, the Company purchased a 262-unit apartment property in Atlanta for approximately $78.6 million.
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The Company raised its annual common share dividend by 6.0% reflecting the current strength of the Company’s business and confidence in the prospects for the business going forward.
Results Per Share
The change in EPS for the quarter ended March 31, 2023 compared to the same period of 2022 is due primarily to higher property sale gains and lower depreciation expense in the current period, the various adjustment items listed on page 25 of this release and the items described below.
The per share change in FFO for the quarter ended March 31, 2023 compared to the same period of 2022 is due primarily to the various adjustment items listed on page 25 of this release and the items described below.
The per share change in Normalized FFO is due primarily to:
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Positive/(Negative) Impact
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First Quarter 2023 vs.
First Quarter 2022
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Residential same store NOI
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$
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0.10
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Non-Residential same store NOI
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0.01
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Lease-Up NOI
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0.01
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2023 and 2022 transaction activity impact on NOI, net
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(0.01
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)
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Interest expense, net
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0.01
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Other items (1)
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(0.02
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)
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Net
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$
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0.10
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(1)
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Primarily represents the negative impact from property damage associated with the California rain storms.
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The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 27 through 32 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 6, 29 and 30 of this release.
Same Store Results
The following table shows the total same store results for the periods presented.
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First Quarter 2023 vs.
First Quarter 2022
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First Quarter 2023 vs.
Fourth Quarter 2022
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Apartment Units
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76,952
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78,331
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Physical Occupancy
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95.9% vs. 96.4%
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95.9% vs. 95.8%
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Revenues
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9.2%
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0.8%
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Expenses
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7.2%
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7.8%
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NOI
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10.2%
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(2.3%)
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On page 10 of this release, the Company has provided a breakout of Residential and Non-Residential same store results with definitions that can be found on page 31 of this release. Non-Residential operations account for approximately 3.8% of total revenues for the quarter ended March 31, 2023.
The following table reflects the detail of the change in Same Store Residential Revenues, which is presented on a GAAP basis showing Leasing Concessions on a straight-line basis.
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First Quarter 2023 vs.
First Quarter 2022
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First Quarter 2023 vs.
Fourth Quarter 2022
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% Change
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% Change
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Same Store Residential Revenues-comparable period
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Lease rates
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9.2
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%
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0.7
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%
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Leasing Concessions
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0.3
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%
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0.0
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%
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Vacancy gain (loss)
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(0.7
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%)
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0.1
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%
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Bad Debt, Net (1)
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(0.2
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%)
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0.1
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%
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Other (2)
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0.6
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%
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(0.2
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%)
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Same Store Residential Revenues-current period
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9.2
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%
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0.7
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%
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(1)
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Change in rental income due to bad debt write-offs and reserves, net of amounts (including governmental rental assistance payments) collected on previously written-off or reserved accounts. Comparable period changes in quarterly Bad Debt, Net will be volatile throughout 2023 primarily due to the timing of governmental rental assistance received in 2022. See pages 3, 12 and 26 for more detail.
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(2)
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Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items.
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See page 11 for detail and reconciliations of Same Store Residential Revenues on a GAAP basis to Same Store Residential Revenues with Leasing Concessions on a cash basis.
Residential Same Store Operating Statistics
The following table includes select operating metrics for Residential Same Store Properties (for 76,952 same store apartment units):
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April 2023 (1)
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Q1 2023
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Q4 2022
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Physical Occupancy
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96.0
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%
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95.9
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%
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95.8
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%
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Percentage of Residents Renewing by quarter/month
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58.0
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%
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57.7
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%
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56.5
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%
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New Lease Change
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1.6
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%
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1.3
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%
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2.2
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%
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Renewal Rate Achieved
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5.7
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%
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6.2
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%
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8.5
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%
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Blended Rate
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4.0
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%
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3.9
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%
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5.6
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%
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(1)
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April 2023 results are preliminary.
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Improving Delinquency Conditions
The Company’s 2023 guidance published February 9, 2023 assumed that full year same store revenue would be negatively impacted by approximately 0.9% at the midpoint due to continuing elevated levels of forecasted Bad Debt, Net as a result of local government restrictions on evictions in California and significantly reduced levels of governmental rental assistance payments. To date, the Company has experienced better payment and move-out activity related to delinquent residents than assumed in its February 2023 guidance. This is offsetting the declines in governmental rental assistance more than the Company originally expected, and this improvement will be taken into account later this year when the Company customarily adjusts guidance.
Investment Activity
The Company did not acquire any operating properties during the first quarter of 2023, but subsequent to the end of the quarter, the Company acquired a recently completed 262-unit apartment property in Atlanta, which is currently in lease up, for approximately $78.6 million at a stabilized Acquisition Cap Rate of 6.6% (5.7% when removing certain real estate tax benefits that will reduce over time).
During the first quarter of 2023, the Company sold a small portfolio of seven properties in Los Angeles, consisting of 247 apartment units, for an aggregate sale price of approximately $135.3 million at a weighted average Disposition Yield of 5.3%, generating an Unlevered IRR of 8.7%.
Second Quarter 2023 Guidance
The Company has established guidance ranges for the second quarter of 2023 EPS, FFO per share and Normalized FFO per share as listed below:
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Q2 2023
Guidance
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EPS
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$0.59 to $0.63
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FFO per share
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$0.90 to $0.94
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Normalized FFO per share
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$0.91 to $0.95
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The difference between the first quarter of 2023 actual EPS of $0.56 and the second quarter of 2023 EPS guidance midpoint of $0.61 is due primarily to the items described below.
The difference between the first quarter of 2023 actual FFO of $0.85 per share and the second quarter of 2023 FFO guidance midpoint of $0.92 per share is due primarily to the items described below.
The difference between the first quarter of 2023 actual Normalized FFO of $0.87 per share and the second quarter of 2023 Normalized FFO guidance midpoint of $0.93 per share is due primarily to higher expected Residential same store NOI and lower expected property damage from California rain storms.
About Equity Residential
Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. Equity Residential owns or has investments in 301 properties consisting of 79,351 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin. For more information on Equity Residential, please visit our website at www.equityapartments.com.
Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential’s management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, government regulations (such as eviction moratoriums) and competition. These and other risks and uncertainties are described under the heading “Risk Factors” in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website,www.equityapartments.com. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
A live webcast of the Company’s conference call discussing these results will take place tomorrow, Wednesday, April 26, 2023 at 10:00 a.m. CT. Please visit the Investor section of the Company’s website at www.equityapartments.com for the webcast link.
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Equity Residential
Consolidated Statements of Operations
(Amounts in thousands except per share data)
(Unaudited)
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Quarter Ended March 31,
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2023
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2022
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REVENUES
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Rental income
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$
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705,088
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$
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653,348
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|
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EXPENSES
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Property and maintenance
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137,579
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|
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124,874
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Real estate taxes and insurance
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106,669
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|
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|
100,688
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Property management
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31,466
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30,747
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General and administrative
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16,165
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17,238
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Depreciation
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215,830
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|
229,961
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Total expenses
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|
507,709
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|
503,508
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Net gain (loss) on sales of real estate properties
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100,209
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(102
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)
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Operating income
|
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297,588
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|
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|
149,738
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|
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|
Interest and other income
|
|
|
1,538
|
|
|
|
3,528
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|
|
Other expenses
|
|
|
(8,995
|
)
|
|
|
(3,056
|
)
|
|
Interest:
|
|
|
|
|
|
Expense incurred, net
|
|
|
(66,401
|
)
|
|
|
(72,792
|
)
|
|
Amortization of deferred financing costs
|
|
|
(1,979
|
)
|
|
|
(2,077
|
)
|
|
Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of land parcels
|
|
|
221,751
|
|
|
|
75,341
|
|
|
Income and other tax (expense) benefit
|
|
|
(298
|
)
|
|
|
(282
|
)
|
|
Income (loss) from investments in unconsolidated entities
|
|
|
(1,382
|
)
|
|
|
(1,261
|
)
|
|
Net income
|
|
|
220,071
|
|
|
|
73,798
|
|
|
Net (income) loss attributable to Noncontrolling Interests:
|
|
|
|
|
|
Operating Partnership
|
|
|
(7,059
|
)
|
|
|
(2,394
|
)
|
|
Partially Owned Properties
|
|
|
(977
|
)
|
|
|
(639
|
)
|
|
Net income attributable to controlling interests
|
|
|
212,035
|
|
|
|
70,765
|
|
|
Preferred distributions
|
|
|
(772
|
)
|
|
|
(772
|
)
|
|
Net income available to Common Shares
|
|
$
|
211,263
|
|
|
$
|
69,993
|
|
|
|
|
|
|
|
|
Earnings per share – basic:
|
|
|
|
|
|
Net income available to Common Shares
|
|
$
|
0.56
|
|
|
$
|
0.19
|
|
|
Weighted average Common Shares outstanding
|
|
|
378,341
|
|
|
|
375,509
|
|
|
|
|
|
|
|
|
Earnings per share – diluted:
|
|
|
|
|
|
Net income available to Common Shares
|
|
$
|
0.56
|
|
|
$
|
0.19
|
|
|
Weighted average Common Shares outstanding
|
|
|
390,664
|
|
|
|
389,628
|
|
|
|
|
|
|
|
|
Distributions declared per Common Share outstanding
|
|
$
|
0.6625
|
|
|
$
|
0.625
|
|
|
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,
|
|
|
|
2023
|
|
2022
|
|
Net income
|
|
$
|
220,071
|
|
|
$
|
73,798
|
|
|
Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties
|
|
|
(977
|
)
|
|
|
(639
|
)
|
|
Preferred distributions
|
|
|
(772
|
)
|
|
|
(772
|
)
|
|
Net income available to Common Shares and Units
|
|
|
218,322
|
|
|
|
72,387
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
Depreciation
|
|
|
215,830
|
|
|
|
229,961
|
|
|
Depreciation – Non-real estate additions
|
|
|
(1,156
|
)
|
|
|
(1,052
|
)
|
|
Depreciation – Partially Owned Properties
|
|
|
(545
|
)
|
|
|
(893
|
)
|
|
Depreciation – Unconsolidated Properties
|
|
|
632
|
|
|
|
620
|
|
|
Net (gain) loss on sales of unconsolidated entities - operating assets
|
|
|
—
|
|
|
|
(9
|
)
|
|
Net (gain) loss on sales of real estate properties
|
|
|
(100,209
|
)
|
|
|
102
|
|
|
FFO available to Common Shares and Units
|
|
|
332,874
|
|
|
|
301,116
|
|
|
|
|
|
|
|
|
Adjustments (see note for additional detail):
|
|
|
|
|
|
Write-off of pursuit costs
|
|
|
1,332
|
|
|
|
1,463
|
|
|
Non-operating asset (gains) losses
|
|
|
714
|
|
|
|
(1,642
|
)
|
|
Other miscellaneous items
|
|
|
6,292
|
|
|
|
(371
|
)
|
|
Normalized FFO available to Common Shares and Units
|
|
$
|
341,212
|
|
|
$
|
300,566
|
|
|
|
|
|
|
|
|
FFO
|
|
$
|
333,646
|
|
|
$
|
301,888
|
|
|
Preferred distributions
|
|
|
(772
|
)
|
|
|
(772
|
)
|
|
FFO available to Common Shares and Units
|
|
$
|
332,874
|
|
|
$
|
301,116
|
|
|
FFO per share and Unit – basic
|
|
$
|
0.85
|
|
|
$
|
0.78
|
|
|
FFO per share and Unit – diluted
|
|
$
|
0.85
|
|
|
$
|
0.77
|
|
|
|
|
|
|
|
|
Normalized FFO
|
|
$
|
341,984
|
|
|
$
|
301,338
|
|
|
Preferred distributions
|
|
|
(772
|
)
|
|
|
(772
|
)
|
|
Normalized FFO available to Common Shares and Units
|
|
$
|
341,212
|
|
|
$
|
300,566
|
|
|
Normalized FFO per share and Unit – basic
|
|
$
|
0.88
|
|
|
$
|
0.78
|
|
|
Normalized FFO per share and Unit – diluted
|
|
$
|
0.87
|
|
|
$
|
0.77
|
|
|
|
|
|
|
|
|
Weighted average Common Shares and Units outstanding – basic
|
|
|
389,851
|
|
|
|
387,397
|
|
|
Weighted average Common Shares and Units outstanding – diluted
|
|
|
390,664
|
|
|
|
389,628
|
|
|
|
|
|
|
|
|
|
|
|
Note: See
Adjustments from FFO to Normalized FFO
for additional detail regarding the adjustments from FFO to Normalized FFO. See
Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms
for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.
|
|
Equity Residential
Consolidated Balance Sheets
(Amounts in thousands except for share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
|
2023
|
|
2022
|
|
ASSETS
|
|
|
|
|
|
Land
|
|
$
|
5,559,883
|
|
|
$
|
5,580,878
|
|
|
Depreciable property
|
|
|
22,343,556
|
|
|
|
22,334,369
|
|
|
Projects under development
|
|
|
132,341
|
|
|
|
112,940
|
|
|
Land held for development
|
|
|
60,665
|
|
|
|
60,567
|
|
|
Investment in real estate
|
|
|
28,096,445
|
|
|
|
28,088,754
|
|
|
Accumulated depreciation
|
|
|
(9,207,194
|
)
|
|
|
(9,027,850
|
)
|
|
Investment in real estate, net
|
|
|
18,889,251
|
|
|
|
19,060,904
|
|
|
Investments in unconsolidated entities1
|
|
|
292,279
|
|
|
|
279,024
|
|
|
Cash and cash equivalents
|
|
|
133,460
|
|
|
|
53,869
|
|
|
Restricted deposits
|
|
|
85,625
|
|
|
|
83,303
|
|
|
Right-of-use assets
|
|
|
466,911
|
|
|
|
462,956
|
|
|
Other assets
|
|
|
235,000
|
|
|
|
278,206
|
|
|
Total assets
|
|
$
|
20,102,526
|
|
|
$
|
20,218,262
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
Mortgage notes payable, net
|
|
$
|
1,968,243
|
|
|
$
|
1,953,438
|
|
|
Notes, net
|
|
|
5,343,851
|
|
|
|
5,342,329
|
|
|
Line of credit and commercial paper
|
|
|
—
|
|
|
|
129,955
|
|
|
Accounts payable and accrued expenses
|
|
|
144,660
|
|
|
|
96,028
|
|
|
Accrued interest payable
|
|
|
49,776
|
|
|
|
66,310
|
|
|
Lease liabilities
|
|
|
314,854
|
|
|
|
308,748
|
|
|
Other liabilities
|
|
|
283,418
|
|
|
|
306,941
|
|
|
Security deposits
|
|
|
68,728
|
|
|
|
68,940
|
|
|
Distributions payable
|
|
|
258,992
|
|
|
|
244,621
|
|
|
Total liabilities
|
|
|
8,432,522
|
|
|
|
8,517,310
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable Noncontrolling Interests – Operating Partnership
|
|
|
323,551
|
|
|
|
318,273
|
|
|
Equity:
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized; 745,600 shares issued and outstanding as of March 31, 2023 and December 31, 2022
|
|
|
37,280
|
|
|
|
37,280
|
|
|
Common Shares of beneficial interest, $0.01 par value; 1,000,000,000 shares authorized; 378,898,221 shares issued and outstanding as of March 31, 2023 and 378,429,708 shares issued and outstanding as of December 31, 2022
|
|
|
3,789
|
|
|
|
3,784
|
|
|
Paid in capital
|
|
|
9,488,320
|
|
|
|
9,476,085
|
|
|
Retained earnings
|
|
|
1,619,131
|
|
|
|
1,658,837
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
(11,232
|
)
|
|
|
(2,547
|
)
|
|
Total shareholders’ equity
|
|
|
11,137,288
|
|
|
|
11,173,439
|
|
|
Noncontrolling Interests:
|
|
|
|
|
|
Operating Partnership
|
|
|
211,718
|
|
|
|
209,961
|
|
|
Partially Owned Properties
|
|
|
(2,553
|
)
|
|
|
(721
|
)
|
|
Total Noncontrolling Interests
|
|
|
209,165
|
|
|
|
209,240
|
|
|
Total equity
|
|
|
11,346,453
|
|
|
|
11,382,679
|
|
|
Total liabilities and equity
|
|
$
|
20,102,526
|
|
|
$
|
20,218,262
|
|
|
|
|
|
|
|
|
|
|
|
1 Includes $231.7 million and $218.0 million in unconsolidated development projects as of March 31, 2023 and December 31, 2022, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects.
|
|
Equity Residential
Portfolio Summary
As of March 31, 2023
|
|
|
|
|
|
|
|
% of
Stabilized
|
|
Average
|
|
|
|
|
|
Apartment
|
|
Budgeted
|
|
Rental
|
|
Markets/Metro Areas
|
|
Properties
|
|
Units
|
|
NOI
|
|
Rate
|
|
Established Markets:
|
|
|
|
|
|
|
|
|
|
Los Angeles
|
|
59
|
|
|
15,012
|
|
|
17.8
|
%
|
|
$
|
2,792
|
|
|
Orange County
|
|
13
|
|
|
4,028
|
|
|
5.3
|
%
|
|
|
2,717
|
|
|
San Diego
|
|
12
|
|
|
2,878
|
|
|
4.0
|
%
|
|
|
2,936
|
|
|
Subtotal – Southern California
|
|
84
|
|
|
21,918
|
|
|
27.1
|
%
|
|
|
2,797
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco
|
|
44
|
|
|
11,790
|
|
|
16.0
|
%
|
|
|
3,244
|
|
|
Washington, D.C.
|
|
47
|
|
|
14,716
|
|
|
15.4
|
%
|
|
|
2,539
|
|
|
New York
|
|
34
|
|
|
8,536
|
|
|
14.1
|
%
|
|
|
4,430
|
|
|
Boston
|
|
27
|
|
|
7,170
|
|
|
11.6
|
%
|
|
|
3,409
|
|
|
Seattle
|
|
46
|
|
|
9,526
|
|
|
11.0
|
%
|
|
|
2,579
|
|
|
Subtotal – Established Markets
|
|
282
|
|
|
73,656
|
|
|
95.2
|
%
|
|
|
3,039
|
|
|
|
|
|
|
|
|
|
|
|
|
Expansion Markets:
|
|
|
|
|
|
|
|
|
|
Denver
|
|
8
|
|
|
2,498
|
|
|
2.6
|
%
|
|
|
2,383
|
|
|
Atlanta
|
|
4
|
|
|
1,215
|
|
|
1.1
|
%
|
|
|
2,163
|
|
|
Dallas/Ft. Worth
|
|
4
|
|
|
1,241
|
|
|
0.7
|
%
|
|
|
1,879
|
|
|
Austin
|
|
3
|
|
|
741
|
|
|
0.4
|
%
|
|
|
1,807
|
|
|
Subtotal – Expansion Markets
|
|
19
|
|
|
5,695
|
|
|
4.8
|
%
|
|
|
2,153
|
|
|
Total
|
|
301
|
|
|
79,351
|
|
|
100.0
|
%
|
|
$
|
2,976
|
|
|
|
|
|
|
|
|
|
Properties
|
|
Apartment Units
|
|
Wholly Owned Properties
|
|
286
|
|
|
76,237
|
|
|
Partially Owned Properties – Consolidated
|
|
15
|
|
|
3,114
|
|
|
|
|
301
|
|
|
79,351
|
|
|
|
|
|
|
|
|
|
Note: Projects under development are not included in the Portfolio Summary until construction has been completed.
|
|
Portfolio Rollforward Q1 2023
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Properties
|
|
Apartment
Units
|
|
Sales Price
|
|
Disposition
Yield
|
|
12/31/2022
|
|
308
|
|
|
79,597
|
|
|
|
|
|
|
Dispositions:
|
|
|
|
|
|
|
|
|
|
Consolidated Rental Properties
|
|
(7
|
)
|
|
(247
|
)
|
|
$
|
(135,300
|
)
|
|
(5.3
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
Configuration Changes
|
|
—
|
|
|
1
|
|
|
|
|
|
|
3/31/2023
|
|
301
|
|
|
79,351
|
|
|
|
|
|
|
First Quarter 2023 vs. First Quarter 2022
Same Store Results/Statistics Including 76,952 Same Store Apartment Units
($ in thousands except for Average Rental Rate)
|
|
|
|
|
|
First Quarter 2023
|
|
First Quarter 2022
|
|
|
|
Residential
|
|
|
%
Change
|
|
Non-
Residential
|
|
%
Change
|
|
Total
|
|
%
Change
|
|
|
|
Residential
|
|
Non-
Residential
|
|
Total
|
|
Revenues
|
|
$
|
656,513
|
|
(1)
|
|
9.2
|
%
|
|
$
|
25,162
|
|
|
9.2
|
%
|
|
$
|
681,675
|
|
|
9.2
|
%
|
|
Revenues
|
|
$
|
601,323
|
|
|
$
|
23,043
|
|
|
$
|
624,366
|
|
|
Expenses
|
|
$
|
220,069
|
|
|
|
7.2
|
%
|
|
$
|
6,721
|
|
|
8.8
|
%
|
|
$
|
226,790
|
|
|
7.2
|
%
|
|
Expenses
|
|
$
|
205,360
|
|
|
$
|
6,175
|
|
|
$
|
211,535
|
|
|
NOI
|
|
$
|
436,444
|
|
|
|
10.2
|
%
|
|
$
|
18,441
|
|
|
9.3
|
%
|
|
$
|
454,885
|
|
|
10.2
|
%
|
|
NOI
|
|
$
|
395,963
|
|
|
$
|
16,868
|
|
|
$
|
412,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate
|
|
$
|
2,968
|
|
|
|
9.8
|
%
|
|
|
|
|
|
|
|
|
|
Average Rental Rate
|
|
$
|
2,703
|
|
|
|
|
|
|
Physical Occupancy
|
|
|
95.9
|
%
|
|
|
(0.5
|
%)
|
|
|
|
|
|
|
|
|
|
Physical Occupancy
|
|
|
96.4
|
%
|
|
|
|
|
|
Turnover
|
|
|
9.0
|
%
|
|
|
0.1
|
%
|
|
|
|
|
|
|
|
|
|
Turnover
|
|
|
8.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2023 vs. Fourth Quarter 2022
Same Store Results/Statistics Including 78,331 Same Store Apartment Units
($ in thousands except for Average Rental Rate)
|
|
|
|
|
|
First Quarter 2023
|
|
Fourth Quarter 2022
|
|
|
|
Residential
|
|
|
%
Change
|
|
Non-
Residential
|
|
%
Change
|
|
Total
|
|
%
Change
|
|
|
|
Residential
|
|
Non-
Residential
|
|
Total
|
|
Revenues
|
|
$
|
669,073
|
|
(1)
|
|
0.7
|
%
|
|
$
|
26,951
|
|
|
3.2
|
%
|
|
$
|
696,024
|
|
|
0.8
|
%
|
|
Revenues
|
|
$
|
664,107
|
|
|
$
|
26,104
|
|
|
$
|
690,211
|
|
|
Expenses
|
|
$
|
224,594
|
|
|
|
7.8
|
%
|
|
$
|
7,181
|
|
|
6.7
|
%
|
|
$
|
231,775
|
|
|
7.8
|
%
|
|
Expenses
|
|
$
|
208,270
|
|
|
$
|
6,731
|
|
|
$
|
215,001
|
|
|
NOI
|
|
$
|
444,479
|
|
|
|
(2.5
|
%)
|
|
$
|
19,770
|
|
|
2.0
|
%
|
|
$
|
464,249
|
|
|
(2.3
|
%)
|
|
NOI
|
|
$
|
455,837
|
|
|
$
|
19,373
|
|
|
$
|
475,210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate
|
|
$
|
2,972
|
|
|
|
0.7
|
%
|
|
|
|
|
|
|
|
|
|
Average Rental Rate
|
|
$
|
2,950
|
|
|
|
|
|
|
Physical Occupancy
|
|
|
95.9
|
%
|
|
|
0.1
|
%
|
|
|
|
|
|
|
|
|
|
Physical Occupancy
|
|
|
95.8
|
%
|
|
|
|
|
|
Turnover
|
|
|
9.1
|
%
|
|
|
(0.3
|
%)
|
|
|
|
|
|
|
|
|
|
Turnover
|
|
|
9.4
|
%
|
|
|
|
|
|
(1)
|
|
See page 11 for Same Store Residential Revenues with Leasing Concessions reflected on a cash basis. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.
|
|
Same Store Residential Revenues – GAAP to Cash Basis (1)
($ in thousands)
|
|
|
|
|
|
|
|
|
|
First Quarter 2023 vs. First Quarter 2022
|
|
First Quarter 2023 vs. Fourth Quarter 2022
|
|
|
|
76,952 Same Store Apartment Units
|
|
78,331 Same Store Apartment Units
|
|
|
|
Q1 2023
|
|
Q1 2022
|
|
Q1 2023
|
|
Q4 2022
|
|
Same Store Residential Revenues (GAAP Basis)
|
|
$
|
656,513
|
|
|
$
|
601,323
|
|
|
$
|
669,073
|
|
|
$
|
664,107
|
|
|
Leasing Concessions amortized
|
|
|
2,073
|
|
|
|
3,913
|
|
|
|
2,511
|
|
|
|
2,183
|
|
|
Leasing Concessions granted
|
|
|
(3,889
|
)
|
|
|
(1,579
|
)
|
|
|
(3,962
|
)
|
|
|
(2,940
|
)
|
|
Same Store Residential Revenues with Leasing Concessions on a cash basis
|
|
$
|
654,697
|
|
|
$
|
603,657
|
|
|
$
|
667,622
|
|
|
$
|
663,350
|
|
|
|
|
|
|
|
|
|
|
|
|
% change - GAAP revenue
|
|
|
9.2
|
%
|
|
|
|
|
0.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% change - cash revenue
|
|
|
8.5
|
%
|
|
|
|
|
0.6
|
%
|
|
|
|
(1)
|
|
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.
|
|
|
|
|
Same Store Net Operating Income By Quarter
Including 76,952 Same Store Apartment Units
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2023
|
|
Q4 2022
|
|
Q3 2022
|
|
Q2 2022
|
|
Q1 2022
|
|
Same store revenues
|
|
$
|
681,675
|
|
|
$
|
676,011
|
|
|
$
|
671,160
|
|
|
$
|
657,582
|
|
|
$
|
624,366
|
|
|
Same store expenses
|
|
|
226,790
|
|
|
|
210,795
|
|
|
|
214,495
|
|
|
|
206,152
|
|
|
|
211,535
|
|
|
Same store NOI
(includes Residential and Non-Residential)
|
|
$
|
454,885
|
|
|
$
|
465,216
|
|
|
$
|
456,665
|
|
|
$
|
451,430
|
|
|
$
|
412,831
|
|
|
Same Store Resident/Tenant Accounts Receivable Balances
Including 76,952 Same Store Apartment Units
($ in thousands)
|
|
|
|
|
|
|
|
|
|
Residential
|
|
Non-Residential
|
|
Balance Sheet (Other assets):
|
|
March 31, 2023
|
|
|
December 31, 2022
|
|
March 31, 2023
|
|
December 31, 2022
|
|
Resident/tenant accounts receivable balances
|
|
$
|
32,408
|
|
|
|
$
|
34,875
|
|
|
$
|
2,414
|
|
|
$
|
2,814
|
|
|
Allowance for doubtful accounts
|
|
|
(28,430
|
)
|
|
|
|
(30,624
|
)
|
|
|
(1,500
|
)
|
|
|
(2,152
|
)
|
|
Net receivable balances
|
|
$
|
3,978
|
|
|
|
$
|
4,251
|
|
|
$
|
914
|
|
|
$
|
662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-line receivable balances
|
|
$
|
4,861
|
|
(1)
|
|
$
|
3,046
|
|
|
$
|
13,607
|
|
|
$
|
13,725
|
|
|
(1)
|
|
Total same store Residential Leasing Concessions granted in the first quarter of 2023 were approximately $3.9 million. The straight-line receivable balance of $4.9 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in the remainder of 2023 and the first quarter of 2024.
|
|
|
|
|
Same Store Residential Bad Debt
Including 76,952 Same Store Apartment Units
($ in thousands)
|
|
|
|
|
|
|
|
|
|
Income Statement (Rental income) (1):
|
|
Q1 2023
|
|
Q4 2022
|
|
Q1 2022
|
|
Bad debts before governmental rental assistance
|
|
$
|
11,690
|
|
|
$
|
13,464
|
|
|
$
|
19,144
|
|
|
Governmental rental assistance received
|
|
|
(991
|
)
|
|
|
(2,054
|
)
|
|
|
(9,481
|
)
|
|
Bad Debt, Net
|
|
$
|
10,699
|
|
|
$
|
11,410
|
|
|
$
|
9,663
|
|
|
|
|
|
|
|
|
|
|
Bad Debt, Net as a % of Same Store Residential Revenues
|
|
|
1.6
|
%
|
|
|
1.8
|
%
|
|
|
1.6
|
%
|
|
(1)
|
|
During the first quarter of 2023, the Company had increased resident payment and move-out activity. This improved activity reduced Bad Debt, Net and more than offset the decline in governmental rental assistance as compared to the Company's original expectations. See pages 2, 3 and 26 for more detail.
|
|
Equity Residential
First Quarter 2023 vs. First Quarter 2022
Same Store Residential Results/Statistics by Market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Year's Quarter
|
|
Markets/Metro Areas
|
|
Apartment
Units
|
|
Q1 2023
% of
Actual
NOI
|
|
Q1 2023
Average
Rental
Rate
|
|
Q1 2023
Weighted
Average
Physical
Occupancy %
|
|
Q1 2023
Turnover
|
|
Revenues
|
|
|
Expenses
|
|
|
NOI
|
|
Average
Rental
Rate
|
|
Physical
Occupancy
|
|
Turnover
|
|
Los Angeles
|
|
14,415
|
|
|
17.7
|
%
|
|
$
|
2,775
|
|
|
95.5
|
%
|
|
9.9
|
%
|
|
6.1
|
%
|
|
|
10.7
|
%
|
|
|
4.0
|
%
|
|
7.6
|
%
|
|
(1.4
|
%)
|
|
1.4
|
%
|
|
Orange County
|
|
4,028
|
|
|
5.6
|
%
|
|
|
2,717
|
|
|
96.2
|
%
|
|
7.3
|
%
|
|
9.8
|
%
|
|
|
10.1
|
%
|
|
|
9.8
|
%
|
|
10.9
|
%
|
|
(0.9
|
%)
|
|
1.0
|
%
|
|
San Diego
|
|
2,706
|
|
|
3.9
|
%
|
|
|
2,899
|
|
|
95.4
|
%
|
|
9.5
|
%
|
|
7.2
|
%
|
|
|
4.8
|
%
|
|
|
7.9
|
%
|
|
8.9
|
%
|
|
(1.5
|
%)
|
|
0.6
|
%
|
|
Subtotal – Southern California
|
|
21,149
|
|
|
27.2
|
%
|
|
|
2,780
|
|
|
95.6
|
%
|
|
9.3
|
%
|
|
6.9
|
%
|
|
|
9.9
|
%
|
|
|
5.7
|
%
|
|
8.4
|
%
|
|
(1.3
|
%)
|
|
1.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco
|
|
11,368
|
|
|
16.6
|
%
|
|
|
3,243
|
|
|
95.6
|
%
|
|
9.5
|
%
|
|
6.6
|
%
|
|
|
7.2
|
%
|
|
|
6.4
|
%
|
|
7.5
|
%
|
|
(0.8
|
%)
|
|
0.1
|
%
|
|
Washington, D.C.
|
|
14,400
|
|
|
16.0
|
%
|
|
|
2,531
|
|
|
96.6
|
%
|
|
7.3
|
%
|
|
6.8
|
%
|
|
|
6.0
|
%
|
|
|
7.2
|
%
|
|
7.1
|
%
|
|
(0.3
|
%)
|
|
(1.0
|
%)
|
|
New York
|
|
8,536
|
|
|
14.2
|
%
|
|
|
4,430
|
|
|
96.8
|
%
|
|
7.5
|
%
|
|
19.3
|
%
|
|
|
3.7
|
%
|
|
|
34.9
|
%
|
|
19.7
|
%
|
|
(0.3
|
%)
|
|
(0.7
|
%)
|
|
Seattle
|
|
9,525
|
|
|
11.5
|
%
|
|
|
2,579
|
|
|
95.1
|
%
|
|
11.1
|
%
|
|
8.6
|
%
|
|
|
2.9
|
%
|
|
|
11.0
|
%
|
|
8.0
|
%
|
|
0.5
|
%
|
|
(0.3
|
%)
|
|
Boston
|
|
6,700
|
|
|
10.0
|
%
|
|
|
3,341
|
|
|
95.6
|
%
|
|
7.9
|
%
|
|
9.6
|
%
|
|
|
7.3
|
%
|
|
|
10.7
|
%
|
|
9.9
|
%
|
|
(0.2
|
%)
|
|
0.3
|
%
|
|
Denver
|
|
2,498
|
|
|
2.7
|
%
|
|
|
2,383
|
|
|
96.3
|
%
|
|
11.1
|
%
|
|
8.0
|
%
|
|
|
18.2
|
%
|
(2)
|
|
3.8
|
%
|
|
7.4
|
%
|
|
0.3
|
%
|
|
0.5
|
%
|
|
Other Expansion Markets
|
|
2,776
|
|
|
1.8
|
%
|
|
|
1,974
|
|
|
94.6
|
%
|
|
11.4
|
%
|
|
5.7
|
%
|
|
|
22.7
|
%
|
(3)
|
|
(7.3
|
%)
|
|
7.6
|
%
|
|
(2.0
|
%)
|
|
0.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
76,952
|
|
|
100.0
|
%
|
|
$
|
2,968
|
|
|
95.9
|
%
|
|
9.0
|
%
|
|
9.2
|
%
|
(1)
|
|
7.2
|
%
|
|
|
10.2
|
%
|
|
9.8
|
%
|
|
(0.5
|
%)
|
|
0.1
|
%
|
|
(1)
|
|
With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 8.5% in the first quarter of 2023 compared to the first quarter of 2022. See page 11 for additional detail and reconciliations.
|
|
(2)
|
|
Expense growth is primarily due to higher real estate taxes from increased assessed property values.
|
|
(3)
|
|
High expense growth during the first quarter of 2023 is primarily due to greater variability given the small number of properties and the timing of certain expenses.
|
|
|
|
|
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the quarter ended March 31, 2023.
|
|
Equity Residential
First Quarter 2023 vs. Fourth Quarter 2022
Same Store Residential Results/Statistics by Market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Quarter
|
|
Markets/Metro Areas
|
|
Apartment
Units
|
|
Q1 2023
% of
Actual
NOI
|
|
Q1 2023
Average
Rental
Rate
|
|
Q1 2023
Weighted
Average
Physical
Occupancy %
|
|
Q1 2023
Turnover
|
|
Revenues
|
|
|
Expenses
|
|
NOI
|
|
Average
Rental
Rate
|
|
Physical
Occupancy
|
|
Turnover
|
|
Los Angeles
|
|
14,415
|
|
|
17.4
|
%
|
|
$
|
2,775
|
|
|
95.5
|
%
|
|
9.9
|
%
|
|
0.8
|
%
|
|
|
12.6
|
%
|
|
(4.0
|
%)
|
|
1.2
|
%
|
|
(0.3
|
%)
|
|
(0.1
|
%)
|
|
Orange County
|
|
4,028
|
|
|
5.5
|
%
|
|
|
2,717
|
|
|
96.2
|
%
|
|
7.3
|
%
|
|
0.6
|
%
|
|
|
7.1
|
%
|
|
(1.1
|
%)
|
|
1.2
|
%
|
|
(0.5
|
%)
|
|
(1.4
|
%)
|
|
San Diego
|
|
2,878
|
|
|
4.1
|
%
|
|
|
2,936
|
|
|
95.4
|
%
|
|
9.7
|
%
|
|
0.8
|
%
|
|
|
6.6
|
%
|
|
(0.9
|
%)
|
|
1.4
|
%
|
|
(0.6
|
%)
|
|
0.9
|
%
|
|
Subtotal – Southern California
|
|
21,321
|
|
|
27.0
|
%
|
|
|
2,785
|
|
|
95.6
|
%
|
|
9.4
|
%
|
|
0.8
|
%
|
|
|
11.0
|
%
|
|
(3.0
|
%)
|
|
1.2
|
%
|
|
(0.4
|
%)
|
|
(0.2
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco
|
|
11,368
|
|
|
16.3
|
%
|
|
|
3,243
|
|
|
95.6
|
%
|
|
9.5
|
%
|
|
0.5
|
%
|
|
|
7.3
|
%
|
|
(2.4
|
%)
|
|
0.5
|
%
|
|
0.0
|
%
|
|
0.1
|
%
|
|
Washington, D.C.
|
|
14,716
|
|
|
16.0
|
%
|
|
|
2,539
|
|
|
96.6
|
%
|
|
7.4
|
%
|
|
0.4
|
%
|
|
|
7.0
|
%
|
|
(2.7
|
%)
|
|
0.3
|
%
|
|
0.1
|
%
|
|
(1.9
|
%)
|
|
New York
|
|
8,536
|
|
|
13.9
|
%
|
|
|
4,430
|
|
|
96.8
|
%
|
|
7.5
|
%
|
|
1.3
|
%
|
|
|
6.9
|
%
|
|
(2.6
|
%)
|
|
1.2
|
%
|
|
0.1
|
%
|
|
(0.1
|
%)
|
|
Seattle
|
|
9,525
|
|
|
11.4
|
%
|
|
|
2,579
|
|
|
95.1
|
%
|
|
11.1
|
%
|
|
0.4
|
%
|
|
|
2.0
|
%
|
|
(0.2
|
%)
|
|
0.2
|
%
|
|
0.1
|
%
|
|
1.2
|
%
|
|
Boston
|
|
7,170
|
|
|
10.7
|
%
|
|
|
3,409
|
|
|
95.5
|
%
|
|
8.0
|
%
|
|
0.7
|
%
|
|
|
11.3
|
%
|
|
(3.6
|
%)
|
|
1.1
|
%
|
|
(0.4
|
%)
|
|
(0.4
|
%)
|
|
Denver
|
|
2,498
|
|
|
2.7
|
%
|
|
|
2,383
|
|
|
96.3
|
%
|
|
11.1
|
%
|
|
0.7
|
%
|
|
|
6.9
|
%
|
|
(1.9
|
%)
|
|
0.5
|
%
|
|
0.2
|
%
|
|
(0.9
|
%)
|
|
Other Expansion Markets
|
|
3,197
|
|
|
2.0
|
%
|
|
|
1,971
|
|
|
94.9
|
%
|
|
12.4
|
%
|
|
2.1
|
%
|
|
|
6.7
|
%
|
|
(2.0
|
%)
|
|
(0.3
|
%)
|
|
2.1
|
%
|
|
(0.6
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
78,331
|
|
|
100.0
|
%
|
|
$
|
2,972
|
|
|
95.9
|
%
|
|
9.1
|
%
|
|
0.7
|
%
|
(1)
|
|
7.8
|
%
|
|
(2.5
|
%)
|
|
0.7
|
%
|
|
0.1
|
%
|
|
(0.3
|
%)
|
|
(1)
|
|
With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 0.6% in the first quarter of 2023 compared to the fourth quarter of 2022. See page 11 for additional detail and reconciliations.
|
|
|
|
|
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the quarter ended March 31, 2023.
|
|
Same Store Residential Net Effective Lease Pricing Statistics
For 76,952 Same Store Apartment Units
|
|
|
|
|
|
|
|
|
|
|
|
New Lease Change (1)
|
|
Renewal Rate Achieved (1)
|
|
Blended Rate (1)
|
|
Markets/Metro Areas
|
|
Q1 2023
|
|
Q4 2022
|
|
Q1 2023
|
|
Q4 2022
|
|
Q1 2023
|
|
Q4 2022
|
|
Southern California
|
|
4.6
|
%
|
|
6.9
|
%
|
|
6.2
|
%
|
|
7.6
|
%
|
|
5.4
|
%
|
|
7.3
|
%
|
|
San Francisco
|
|
2.0
|
%
|
|
(0.7
|
%)
|
|
6.1
|
%
|
|
7.1
|
%
|
|
4.3
|
%
|
|
3.0
|
%
|
|
Washington, D.C.
|
|
2.4
|
%
|
|
2.9
|
%
|
|
6.0
|
%
|
|
8.9
|
%
|
|
4.4
|
%
|
|
6.2
|
%
|
|
New York
|
|
2.4
|
%
|
|
5.9
|
%
|
|
6.4
|
%
|
|
11.3
|
%
|
|
4.7
|
%
|
|
9.1
|
%
|
|
Seattle
|
|
(5.8
|
%)
|
|
(6.5
|
%)
|
|
5.6
|
%
|
|
7.2
|
%
|
|
(0.2
|
%)
|
|
(0.2
|
%)
|
|
Boston
|
|
0.6
|
%
|
|
2.1
|
%
|
|
6.9
|
%
|
|
8.9
|
%
|
|
3.8
|
%
|
|
6.4
|
%
|
|
Denver
|
|
(2.4
|
%)
|
|
(1.6
|
%)
|
|
6.0
|
%
|
|
6.6
|
%
|
|
0.9
|
%
|
|
2.0
|
%
|
|
Other Expansion Markets
|
|
(5.3
|
%)
|
|
(9.1
|
%)
|
|
5.5
|
%
|
|
8.5
|
%
|
|
(0.8
|
%)
|
|
(0.1
|
%)
|
|
Total
|
|
1.3
|
%
|
|
2.2
|
%
|
|
6.2
|
%
|
|
8.5
|
%
|
|
3.9
|
%
|
|
5.6
|
%
|
|
(1)
|
|
Historically, New Lease Change is negative in the first quarter of the year. In contrast, New Lease Change for the first quarter of 2023 was positive, pointing to supportive operating conditions that are consistent with the Company's expectations. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions. See page 3 for April 2023 preliminary data.
|
|
First Quarter 2023 vs. First Quarter 2022
Total Same Store Operating Expenses Including 76,952 Same Store Apartment Units
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2023
|
|
Q1 2022
|
|
$
Change (1)
|
|
%
Change
|
|
% of
Q1 2023
Operating
Expenses
|
|
Real estate taxes
|
|
$
|
90,425
|
|
|
$
|
88,164
|
|
|
$
|
2,261
|
|
|
2.6
|
%
|
|
39.9
|
%
|
|
On-site payroll
|
|
|
42,359
|
|
|
|
41,222
|
|
|
|
1,137
|
|
|
2.8
|
%
|
|
18.7
|
%
|
|
Utilities
|
|
|
38,520
|
|
|
|
34,184
|
|
|
|
4,336
|
|
|
12.7
|
%
|
|
17.0
|
%
|
|
Repairs and maintenance
|
|
|
30,136
|
|
|
|
25,777
|
|
|
|
4,359
|
|
|
16.9
|
%
|
|
13.3
|
%
|
|
Insurance
|
|
|
8,415
|
|
|
|
7,360
|
|
|
|
1,055
|
|
|
14.3
|
%
|
|
3.7
|
%
|
|
Leasing and advertising
|
|
|
2,497
|
|
|
|
2,360
|
|
|
|
137
|
|
|
5.8
|
%
|
|
1.1
|
%
|
|
Other on-site operating expenses
|
|
|
14,438
|
|
|
|
12,468
|
|
|
|
1,970
|
|
|
15.8
|
%
|
|
6.3
|
%
|
|
Total Same Store Operating Expenses (2)
(includes Residential and Non-Residential)
|
|
$
|
226,790
|
|
|
$
|
211,535
|
|
|
$
|
15,255
|
|
|
7.2
|
%
|
|
100.0
|
%
|
|
(1)
|
|
The quarter-over-quarter changes were primarily driven by the following factors:
|
|
|
|
|
|
Real estate taxes – Increase due to modest escalation in rates and assessed values.
|
|
|
|
|
|
On-site payroll – Increase due primarily to timing of employee benefit costs and staffing. Innovation initiatives continue to temper inflationary pressures in wages.
|
|
|
|
|
|
Utilities – Increase from gas and electric primarily driven by higher commodity prices.
|
|
|
|
|
|
Repairs and maintenance – Increase primarily driven by greater outsourcing due in part to higher internal staffing utilization to address issues from the recent California rain storms along with increases in minimum wage on contracted services.
|
|
|
|
|
|
Insurance – Increase due to higher premiums on property insurance renewal due to challenging conditions in the insurance market.
|
|
|
|
|
|
Leasing and advertising – Increase primarily driven by increased digital advertising and resident activities.
|
|
|
|
|
|
Other on-site operating expenses – Increase primarily driven by higher property-related legal expenses.
|
|
|
|
|
(2)
|
|
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
|
|
Debt Summary as of March 31, 2023
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
Balances (1)
|
|
% of Total
|
|
Weighted
Average
Rates (1)
|
|
Weighted
Average
Maturities
(years)
|
|
Secured
|
|
$
|
1,968,243
|
|
|
26.9
|
%
|
|
3.82
|
%
|
|
4.5
|
|
|
Unsecured
|
|
|
5,343,851
|
|
|
73.1
|
%
|
|
3.59
|
%
|
|
9.6
|
|
|
Total
|
|
$
|
7,312,094
|
|
|
100.0
|
%
|
|
3.65
|
%
|
|
8.2
|
|
|
Fixed Rate Debt:
|
|
|
|
|
|
|
|
|
|
Secured – Conventional
|
|
$
|
1,609,068
|
|
|
22.0
|
%
|
|
3.67
|
%
|
|
3.7
|
|
|
Unsecured – Public
|
|
|
5,343,851
|
|
|
73.1
|
%
|
|
3.56
|
%
|
|
9.6
|
|
|
Fixed Rate Debt
|
|
|
6,952,919
|
|
|
95.1
|
%
|
|
3.59
|
%
|
|
8.2
|
|
|
Floating Rate Debt:
|
|
|
|
|
|
|
|
|
|
Secured – Conventional
|
|
|
122,612
|
|
|
1.7
|
%
|
|
6.87
|
%
|
|
1.2
|
|
|
Secured – Tax Exempt
|
|
|
236,563
|
|
|
3.2
|
%
|
|
3.30
|
%
|
|
11.2
|
|
|
Unsecured – Revolving Credit Facility
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.6
|
|
|
Unsecured – Commercial Paper Program (2)
|
|
|
—
|
|
|
—
|
|
|
4.70
|
%
|
|
—
|
|
|
Floating Rate Debt
|
|
|
359,175
|
|
|
4.9
|
%
|
|
4.54
|
%
|
|
7.9
|
|
|
Total
|
|
$
|
7,312,094
|
|
|
100.0
|
%
|
|
3.65
|
%
|
|
8.2
|
|
|
(1)
|
|
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
|
|
(2)
|
|
At March 31, 2023, there was no commercial paper outstanding. The weighted average amount outstanding for the quarter ended March 31, 2023 was approximately $109.0 million.
|
|
|
|
|
Note: The Company capitalized interest of approximately $3.4 million and $1.0 million during the quarters ended March 31, 2023 and 2022, respectively.
|
|
Debt Maturity Schedule as of March 31, 2023
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
|
|
Fixed
Rate
|
|
Floating
Rate
|
|
Total
|
|
% of Total
|
|
Weighted
Average Coupons
on Fixed
Rate Debt (1)
|
|
Weighted
Average
Coupons on
Total Debt (1)
|
|
2023 (2)
|
|
$
|
800,000
|
|
|
$
|
68,235
|
|
|
$
|
868,235
|
|
|
11.8
|
%
|
|
4.21
|
%
|
|
4.40
|
%
|
|
2024
|
|
|
—
|
|
|
|
6,100
|
|
|
|
6,100
|
|
|
0.1
|
%
|
|
N/A
|
|
|
4.01
|
%
|
|
2025
|
|
|
450,000
|
|
|
|
67,270
|
|
|
|
517,270
|
|
|
7.0
|
%
|
|
3.38
|
%
|
|
3.85
|
%
|
|
2026
|
|
|
592,025
|
|
|
|
9,000
|
|
|
|
601,025
|
|
|
8.1
|
%
|
|
3.58
|
%
|
|
3.59
|
%
|
|
2027
|
|
|
400,000
|
|
|
|
9,800
|
|
|
|
409,800
|
|
|
5.6
|
%
|
|
3.25
|
%
|
|
3.27
|
%
|
|
2028
|
|
|
900,000
|
|
|
|
10,700
|
|
|
|
910,700
|
|
|
12.3
|
%
|
|
3.79
|
%
|
|
3.79
|
%
|
|
2029
|
|
|
888,120
|
|
|
|
11,500
|
|
|
|
899,620
|
|
|
12.2
|
%
|
|
3.30
|
%
|
|
3.31
|
%
|
|
2030
|
|
|
1,095,000
|
|
|
|
12,600
|
|
|
|
1,107,600
|
|
|
15.0
|
%
|
|
2.55
|
%
|
|
2.56
|
%
|
|
2031
|
|
|
528,500
|
|
|
|
39,700
|
|
|
|
568,200
|
|
|
7.7
|
%
|
|
1.94
|
%
|
|
2.09
|
%
|
|
2032
|
|
|
—
|
|
|
|
28,000
|
|
|
|
28,000
|
|
|
0.4
|
%
|
|
N/A
|
|
|
3.97
|
%
|
|
2033+
|
|
|
1,350,850
|
|
|
|
110,900
|
|
|
|
1,461,750
|
|
|
19.8
|
%
|
|
4.39
|
%
|
|
4.32
|
%
|
|
Subtotal
|
|
|
7,004,495
|
|
|
|
373,805
|
|
|
|
7,378,300
|
|
|
100.0
|
%
|
|
3.48
|
%
|
|
3.55
|
%
|
|
Deferred Financing Costs and Unamortized (Discount)
|
|
|
(51,576
|
)
|
|
|
(14,630
|
)
|
|
|
(66,206
|
)
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
Total
|
|
$
|
6,952,919
|
|
|
$
|
359,175
|
|
|
$
|
7,312,094
|
|
|
100.0
|
%
|
|
3.48
|
%
|
|
3.55
|
%
|
|
(1)
|
|
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
|
|
(2)
|
|
As of March 31, 2023, the Company had $450.0 million of ten-year forward starting SOFR swaps outstanding at a weighted average rate of 2.90% (currently equivalent to a ten-year U.S. Treasury of approximately 3.16%) to hedge the U.S. Treasury risk for the refinancing of 2023 maturities.
|
|
Selected Unsecured Public Debt Covenants
|
|
|
|
|
|
|
|
|
|
March 31, 2023
|
|
December 31, 2022
|
|
Debt to Adjusted Total Assets (not to exceed 60%)
|
|
26.7%
|
|
27.1%
|
|
|
|
|
|
|
|
Secured Debt to Adjusted Total Assets (not to exceed 40%)
|
|
8.0%
|
|
7.9%
|
|
|
|
|
|
|
|
Consolidated Income Available for Debt Service to Maximum Annual Service Charges
(must be at least 1.5 to 1)
|
|
6.30
|
|
6.24
|
|
|
|
|
|
|
|
Total Unencumbered Assets to Unsecured Debt
(must be at least 125%)
|
|
528.9%
|
|
512.5%
|
|
Note: These selected covenants represent the most restrictive financial covenants relating to ERP Operating Limited Partnership's ("ERPOP") outstanding public debt securities. Equity Residential is the general partner of ERPOP.
|
|
|
|
Selected Credit Ratios
|
|
|
|
|
|
|
|
|
|
March 31, 2023
|
|
December 31, 2022
|
|
Total debt to Normalized EBITDAre
|
|
4.27x
|
|
4.42x
|
|
|
|
|
|
|
|
Net debt to Normalized EBITDAre
|
|
4.17x
|
|
4.38x
|
|
|
|
|
|
|
|
Unencumbered NOI as a % of total NOI
|
|
88.3%
|
|
88.2%
|
|
Note: See Normalized EBITDAre Reconciliations for detail.
|
|
Capital Structure as of March 31, 2023
(Amounts in thousands except for share/unit and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured Debt
|
|
|
|
|
|
$
|
1,968,243
|
|
|
26.9
|
%
|
|
|
|
Unsecured Debt
|
|
|
|
|
|
|
5,343,851
|
|
|
73.1
|
%
|
|
|
|
Total Debt
|
|
|
|
|
|
|
7,312,094
|
|
|
100.0
|
%
|
|
23.7
|
%
|
|
Common Shares (includes Restricted Shares)
|
|
|
378,898,221
|
|
|
96.8
|
%
|
|
|
|
|
|
|
|
Units (includes OP Units and Restricted Units)
|
|
|
12,515,083
|
|
|
3.2
|
%
|
|
|
|
|
|
|
|
Total Shares and Units
|
|
|
391,413,304
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
Common Share Price at March 31, 2023
|
|
$
|
60.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,484,798
|
|
|
99.8
|
%
|
|
|
|
Perpetual Preferred Equity (see below)
|
|
|
|
|
|
|
37,280
|
|
|
0.2
|
%
|
|
|
|
Total Equity
|
|
|
|
|
|
|
23,522,078
|
|
|
100.0
|
%
|
|
76.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Market Capitalization
|
|
|
|
|
|
$
|
30,834,172
|
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Perpetual Preferred Equity as of March 31, 2023
(Amounts in thousands except for share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series
|
|
Call Date
|
|
Outstanding
Shares
|
|
Liquidation
Value
|
|
Annual
Dividend
Per Share
|
|
Annual
Dividend
Amount
|
|
Preferred Shares:
|
|
|
|
|
|
|
|
|
|
|
|
8.29% Series K
|
|
12/10/26
|
|
745,600
|
|
|
$
|
37,280
|
|
|
$
|
4.145
|
|
|
$
|
3,091
|
|
|
Equity Residential
Common Share and Unit
Weighted Average Amounts Outstanding
|
|
|
|
Q1 2023
|
|
Q1 2022
|
|
Weighted Average Amounts Outstanding for Net Income Purposes:
|
|
|
|
|
|
Common Shares - basic
|
|
378,340,876
|
|
|
375,508,944
|
|
|
Shares issuable from assumed conversion/vesting of:
|
|
|
|
|
|
- OP Units
|
|
11,509,669
|
|
|
11,888,041
|
|
|
- long-term compensation shares/units
|
|
813,581
|
|
|
2,089,783
|
|
|
- ATM forward sales
|
|
—
|
|
|
141,136
|
|
|
Total Common Shares and Units - diluted
|
|
390,664,126
|
|
|
389,627,904
|
|
|
|
|
|
|
|
|
Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes:
|
|
|
|
|
|
Common Shares - basic
|
|
378,340,876
|
|
|
375,508,944
|
|
|
OP Units - basic
|
|
11,509,669
|
|
|
11,888,041
|
|
|
Total Common Shares and OP Units - basic
|
|
389,850,545
|
|
|
387,396,985
|
|
|
Shares issuable from assumed conversion/vesting of:
|
|
|
|
|
|
- long-term compensation shares/units
|
|
813,581
|
|
|
2,089,783
|
|
|
- ATM forward sales
|
|
—
|
|
|
141,136
|
|
|
Total Common Shares and Units - diluted
|
|
390,664,126
|
|
|
389,627,904
|
|
|
|
|
|
|
|
|
Period Ending Amounts Outstanding:
|
|
|
|
|
|
Common Shares (includes Restricted Shares)
|
|
378,898,221
|
|
|
375,974,070
|
|
|
Units (includes OP Units and Restricted Units)
|
|
12,515,083
|
|
|
12,872,604
|
|
|
Total Shares and Units
|
|
391,413,304
|
|
|
388,846,674
|
|
|
Equity Residential
Development and Lease-Up Projects as of March 31, 2023
(Amounts in thousands except for project and apartment unit amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated/Actual
|
|
|
|
Projects
|
|
Location
|
|
Ownership
Percentage
|
|
No. of
Apartment
Units
|
|
Total
Budgeted Capital
Cost
|
|
Total
Book Value
to Date
|
|
Total
Debt (1)
|
|
Percentage
Completed
|
|
Start
Date
|
|
Initial
Occupancy
|
|
Completion
Date
|
|
Stabilization
Date
|
|
Percentage
Leased /
Occupied
|
|
CONSOLIDATED:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects Under Development:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reverb (fka 9th and W) (2)
|
|
Washington, D.C.
|
|
92
|
%
|
|
312
|
|
|
$
|
108,027
|
|
|
$
|
97,367
|
|
|
$
|
57,931
|
|
|
95
|
%
|
|
Q3 2021
|
|
Q2 2023
|
|
Q3 2023
|
|
Q3 2024
|
|
8% / –
|
|
Laguna Clara II
|
|
Santa Clara, CA
|
|
100
|
%
|
|
225
|
|
|
|
152,621
|
|
|
|
34,974
|
|
|
|
—
|
|
|
23
|
%
|
|
Q2 2022
|
|
Q4 2024
|
|
Q1 2025
|
|
Q4 2025
|
|
– / –
|
|
Projects Under Development - Consolidated
|
|
|
|
537
|
|
|
|
260,648
|
|
|
|
132,341
|
|
|
|
57,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects Completed and Stabilized During the Quarter:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aero Apartments
|
|
Alameda, CA
|
|
90
|
%
|
|
200
|
|
|
|
116,394
|
|
|
|
113,611
|
|
|
|
64,681
|
|
|
100
|
%
|
|
Q3 2019
|
|
Q2 2021
|
|
Q2 2021
|
|
Q1 2023
|
|
98% / 96%
|
|
Projects Completed and Stabilized During the Quarter - Consolidated
|
|
|
|
200
|
|
|
|
116,394
|
|
|
|
113,611
|
|
|
|
64,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNCONSOLIDATED:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects Under Development:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alloy Sunnyside
|
|
Denver, CO
|
|
80
|
%
|
|
209
|
|
|
|
66,004
|
|
|
|
45,416
|
|
|
|
9,349
|
|
|
66
|
%
|
|
Q3 2021
|
|
Q4 2023
|
|
Q2 2024
|
|
Q1 2025
|
|
– / –
|
|
Alexan Harrison
|
|
Harrison, NY
|
|
62
|
%
|
|
450
|
|
|
|
198,664
|
|
|
|
121,258
|
|
|
|
25,869
|
|
|
52
|
%
|
|
Q3 2021
|
|
Q3 2023
|
|
Q2 2024
|
|
Q4 2025
|
|
– / –
|
|
Solana Beeler Park
|
|
Denver, CO
|
|
90
|
%
|
|
270
|
|
|
|
81,206
|
|
|
|
32,249
|
|
|
|
1,384
|
|
|
28
|
%
|
|
Q4 2021
|
|
Q4 2023
|
|
Q2 2024
|
|
Q1 2025
|
|
– / –
|
|
Remy (Toll)
|
|
Frisco, TX
|
|
75
|
%
|
|
357
|
|
|
|
96,937
|
|
|
|
52,415
|
|
|
|
10,369
|
|
|
46
|
%
|
|
Q1 2022
|
|
Q1 2024
|
|
Q4 2024
|
|
Q3 2025
|
|
– / –
|
|
Settler (Toll)
|
|
Fort Worth, TX
|
|
75
|
%
|
|
362
|
|
|
|
81,775
|
|
|
|
33,871
|
|
|
|
—
|
|
|
35
|
%
|
|
Q2 2022
|
|
Q2 2024
|
|
Q3 2024
|
|
Q3 2025
|
|
– / –
|
|
Lyle (Toll) (2)
|
|
Dallas, TX
|
|
75
|
%
|
|
334
|
|
|
|
86,332
|
|
|
|
20,255
|
|
|
|
3,426
|
|
|
22
|
%
|
|
Q3 2022
|
|
Q4 2024
|
|
Q2 2025
|
|
Q1 2026
|
|
– / –
|
|
Projects Under Development - Unconsolidated
|
|
|
|
1,982
|
|
|
|
610,918
|
|
|
|
305,464
|
|
|
|
50,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Development Projects - Consolidated
|
|
|
|
|
|
737
|
|
|
|
377,042
|
|
|
|
245,952
|
|
|
|
122,612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Development Projects - Unconsolidated
|
|
|
|
|
|
1,982
|
|
|
|
610,918
|
|
|
|
305,464
|
|
|
|
50,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Development Projects
|
|
|
|
|
|
2,719
|
|
|
$
|
987,960
|
|
|
$
|
551,416
|
|
|
$
|
173,009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS
|
|
Total Budgeted
Capital Cost
|
|
Q1 2023
NOI
|
|
Projects Under Development - Consolidated
|
|
$
|
260,648
|
|
|
$
|
(64
|
)
|
|
Projects Completed and Stabilized During the Quarter - Consolidated
|
|
|
116,394
|
|
|
|
928
|
|
|
Projects Under Development - Unconsolidated
|
|
|
610,918
|
|
|
|
—
|
|
|
|
|
$
|
987,960
|
|
|
$
|
864
|
|
|
(1)
|
|
All non-wholly owned projects are being partially funded with project-specific construction loans. None of these loans are recourse to the Company.
|
|
(2)
|
|
The land parcels under these projects are subject to long-term ground leases.
|
|
Equity Residential
Capital Expenditures to Real Estate
For the Quarter Ended March 31, 2023
(Amounts in thousands except for apartment unit and per apartment unit amounts)
|
|
|
|
Same Store
Properties
|
|
|
Non-Same Store
Properties/Other
|
|
|
Total
|
|
Same Store Avg.
Per Apartment Unit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Apartment Units
|
|
|
76,952
|
|
|
|
|
2,399
|
|
|
|
|
79,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Improvements
|
|
$
|
20,474
|
|
|
|
$
|
1,223
|
|
(2)
|
|
$
|
21,697
|
|
|
$
|
266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Renovation Expenditures
|
|
|
15,525
|
|
(1)
|
|
|
5,337
|
|
(2)
|
|
|
20,862
|
|
|
|
202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Replacements
|
|
|
12,138
|
|
|
|
|
695
|
|
|
|
|
12,833
|
|
|
|
158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures to Real Estate (3)
|
|
$
|
48,137
|
|
|
|
$
|
7,255
|
|
|
|
$
|
55,392
|
|
|
$
|
626
|
|
|
(1)
|
|
Renovation Expenditures on 477 same store apartment units for the quarter ended March 31, 2023 approximated $32,547 per apartment unit renovated.
|
|
(2)
|
|
Includes expenditures for two properties that have been removed from same store while undergoing major renovations requiring a significant number of apartment units to be vacated to accommodate the extensive planned improvements. The renovations are expected to continue through at least the end of 2023 at both properties.
|
|
(3)
|
|
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
|
|
Equity Residential
|
|
Normalized EBITDAre Reconciliations
|
|
(Amounts in thousands)
|
|
|
|
Trailing Twelve Months
|
|
2023
|
|
2022
|
|
|
|
March 31, 2023
|
|
December 31, 2022
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Net income
|
|
$
|
953,268
|
|
|
$
|
806,995
|
|
|
$
|
220,071
|
|
|
$
|
165,354
|
|
|
$
|
335,165
|
|
|
$
|
232,678
|
|
|
$
|
73,798
|
|
|
Interest expense incurred, net
|
|
|
276,529
|
|
|
|
282,920
|
|
|
|
66,401
|
|
|
|
65,827
|
|
|
|
72,412
|
|
|
|
71,889
|
|
|
|
72,792
|
|
|
Amortization of deferred financing costs
|
|
|
8,631
|
|
|
|
8,729
|
|
|
|
1,979
|
|
|
|
2,308
|
|
|
|
2,220
|
|
|
|
2,124
|
|
|
|
2,077
|
|
|
Amortization of above/below market lease intangibles
|
|
|
4,464
|
|
|
|
4,464
|
|
|
|
1,116
|
|
|
|
1,116
|
|
|
|
1,116
|
|
|
|
1,116
|
|
|
|
1,116
|
|
|
Depreciation
|
|
|
868,037
|
|
|
|
882,168
|
|
|
|
215,830
|
|
|
|
214,272
|
|
|
|
214,129
|
|
|
|
223,806
|
|
|
|
229,961
|
|
|
Income and other tax expense (benefit)
|
|
|
916
|
|
|
|
900
|
|
|
|
298
|
|
|
|
175
|
|
|
|
152
|
|
|
|
291
|
|
|
|
282
|
|
|
EBITDA
|
|
|
2,111,845
|
|
|
|
1,986,176
|
|
|
|
505,695
|
|
|
|
449,052
|
|
|
|
625,194
|
|
|
|
531,904
|
|
|
|
380,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (gain) loss on sales of real estate properties
|
|
|
(404,636
|
)
|
|
|
(304,325
|
)
|
|
|
(100,209
|
)
|
|
|
21
|
|
|
|
(196,551
|
)
|
|
|
(107,897
|
)
|
|
|
102
|
|
|
Net (gain) loss on sales of unconsolidated entities - operating assets
|
|
|
—
|
|
|
|
(9
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(9
|
)
|
|
EBITDAre
|
|
|
1,707,209
|
|
|
|
1,681,842
|
|
|
|
405,486
|
|
|
|
449,073
|
|
|
|
428,643
|
|
|
|
424,007
|
|
|
|
380,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-off of pursuit costs (other expenses)
|
|
|
4,649
|
|
|
|
4,780
|
|
|
|
1,332
|
|
|
|
1,484
|
|
|
|
781
|
|
|
|
1,052
|
|
|
|
1,463
|
|
|
(Income) loss from investments in unconsolidated entities - operations
|
|
|
5,152
|
|
|
|
5,040
|
|
|
|
1,382
|
|
|
|
1,575
|
|
|
|
1,027
|
|
|
|
1,168
|
|
|
|
1,270
|
|
|
Realized (gain) loss on investment securities (interest and other income)
|
|
|
3,317
|
|
|
|
1,164
|
|
|
|
87
|
|
|
|
3,225
|
|
|
|
3
|
|
|
|
2
|
|
|
|
(2,066
|
)
|
|
Insurance/litigation settlement or reserve income (interest and other income)
|
|
|
(1,223
|
)
|
|
|
(1,650
|
)
|
|
|
(800
|
)
|
|
|
(12
|
)
|
|
|
(100
|
)
|
|
|
(311
|
)
|
|
|
(1,227
|
)
|
|
Insurance/litigation/environmental settlement or reserve expense (other expenses)
|
|
|
5,744
|
|
|
|
1,495
|
|
|
|
4,999
|
|
|
|
745
|
|
|
|
—
|
|
|
|
—
|
|
|
|
750
|
|
|
Advocacy contributions (other expenses)
|
|
|
1,344
|
|
|
|
1,512
|
|
|
|
7
|
|
|
|
50
|
|
|
|
720
|
|
|
|
567
|
|
|
|
175
|
|
|
Data transformation project (other expenses)
|
|
|
3,200
|
|
|
|
1,120
|
|
|
|
2,080
|
|
|
|
1,120
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Real estate tax transaction adjustment (real estate taxes)
|
|
|
(18,072
|
)
|
|
|
(18,072
|
)
|
|
|
—
|
|
|
|
(18,072
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Other
|
|
|
1,769
|
|
|
|
1,694
|
|
|
|
6
|
|
|
|
436
|
|
|
|
1,397
|
|
|
|
(70
|
)
|
|
|
(69
|
)
|
|
Normalized EBITDAre
|
|
$
|
1,713,089
|
|
|
$
|
1,678,925
|
|
|
$
|
414,579
|
|
|
$
|
439,624
|
|
|
$
|
432,471
|
|
|
$
|
426,415
|
|
|
$
|
380,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Items:
|
|
March 31, 2023
|
|
December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
$
|
7,312,094
|
|
|
$
|
7,425,722
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
(133,460
|
)
|
|
|
(53,869
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage principal reserves/sinking funds
|
|
|
(27,017
|
)
|
|
|
(25,304
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net debt
|
|
$
|
7,151,617
|
|
|
$
|
7,346,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: EBITDA, EBITDAre and Normalized EBITDAre do not include any adjustments for the Company’s share of partially owned unconsolidated entities or the minority partner’s share of partially owned consolidated entities due to the immaterial size of the Company’s partially owned portfolio.
|
|
Equity Residential
|
|
Adjustments from FFO to Normalized FFO
|
|
(Amounts in thousands)
|
|
|
|
Quarter Ended March 31,
|
|
|
|
2023
|
|
2022
|
|
Variance
|
|
|
|
|
|
|
|
|
|
Impairment – non-operating real estate assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
Write-off of pursuit costs (other expenses)
|
|
|
1,332
|
|
|
|
1,463
|
|
|
|
(131
|
)
|
|
|
|
|
|
|
|
|
|
Debt extinguishment and preferred share redemption (gains) losses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
(Income) loss from investments in unconsolidated entities ─ non-operating assets
|
|
|
627
|
|
|
|
424
|
|
|
|
203
|
|
|
Realized (gain) loss on investment securities (interest and other income)
|
|
|
87
|
|
|
|
(2,066
|
)
|
|
|
2,153
|
|
|
Non-operating asset (gains) losses
|
|
|
714
|
|
|
|
(1,642
|
)
|
|
|
2,356
|
|
|
|
|
|
|
|
|
|
|
Insurance/litigation settlement or reserve income (interest and other income)
|
|
|
(800
|
)
|
|
|
(1,227
|
)
|
|
|
427
|
|
|
Insurance/litigation/environmental settlement or reserve expense (other expenses)
|
|
|
4,999
|
|
|
|
750
|
|
|
|
4,249
|
|
|
Advocacy contributions (other expenses)
|
|
|
7
|
|
|
|
175
|
|
|
|
(168
|
)
|
|
Data transformation project (other expenses)
|
|
|
2,080
|
|
|
|
—
|
|
|
|
2,080
|
|
|
Other
|
|
|
6
|
|
|
|
(69
|
)
|
|
|
75
|
|
|
Other miscellaneous items
|
|
|
6,292
|
|
|
|
(371
|
)
|
|
|
6,663
|
|
|
|
|
|
|
|
|
|
|
Adjustments from FFO to Normalized FFO
|
|
$
|
8,338
|
|
|
$
|
(550
|
)
|
|
$
|
8,888
|
|
|
|
|
|
|
|
|
|
Note: See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.
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Equity Residential
Normalized FFO Guidance and Assumptions
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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 and the write-off of pursuit costs, are not included in the estimates provided on this page. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.
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Q2 2023
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Revised Full Year 2023
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Previous Full Year 2023
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2023 Normalized FFO Guidance (per share diluted)
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Expected Normalized FFO Per Share
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$0.91 to $0.95
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$3.70 to $3.80
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$3.70 to $3.80
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2023 Same Store Assumptions (includes Residential and Non-Residential)
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Physical Occupancy
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96.2%
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96.2%
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Revenue change (1)
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4.5% to 6.0%
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4.5% to 6.0%
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Expense change
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4.0% to 5.0%
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4.0% to 5.0%
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NOI change (2)
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4.75% to 6.25%
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4.75% to 6.25%
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2023 Transaction Assumptions
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Consolidated rental acquisitions
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$300.0M
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–
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Consolidated rental dispositions
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$300.0M
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–
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Transaction Accretion (Dilution)
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–
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–
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2023 Debt Assumptions
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Weighted average debt outstanding
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$7.375B to $7.575B
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$7.375B to $7.575B
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Interest expense, net (on a Normalized FFO basis)
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$274.5M to $280.5M
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$274.5M to $280.5M
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Capitalized interest
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$10.0M to $14.0M
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$10.0M to $14.0M
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2023 Capital Expenditures to Real Estate Assumptions for Same Store Properties (3)
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Capital Expenditures to Real Estate for Same Store Properties
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$240.0M
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$240.0M
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Capital Expenditures to Real Estate per Same Store Apartment Unit
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$3,100
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$3,100
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2023 Other Guidance Assumptions
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Property management expense
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$119.0M to $122.0M
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$119.0M to $122.0M
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General and administrative expense
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$55.5M to $59.5M
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$55.5M to $59.5M
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