Investor Relations

Press Release

Equity Residential Reports Fourth Quarter 2022 Results

Company Release - 2/9/2023

Expects Continued Above Trend Growth in 2023

Equity Residential (NYSE: EQR) today reported results for the quarter and year ended December 31, 2022.

Fourth Quarter 2022 Results

All per share results are reported as available to common shares/units on a diluted basis.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended December 31,

 

 

 

 

 

2022

 

 

2021

 

 

$ Change

 

 

% Change

 

 

 

Earnings Per Share (EPS)

 

$

0.42

 

 

$

1.40

 

 

$

(0.98

)

 

 

(70.0

%)

 

 

Funds from Operations (FFO) per share

 

$

0.97

 

 

$

0.76

 

 

$

0.21

 

 

 

27.6

%

 

 

Normalized FFO per share

 

$

0.94

 

 

$

0.82

 

 

$

0.12

 

 

 

14.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

 

 

2022

 

 

2021

 

 

$ Change

 

 

% Change

 

 

 

Earnings Per Share (EPS)

 

$

2.05

 

 

$

3.54

 

 

$

(1.49

)

 

 

(42.1

%)

 

 

Funds from Operations (FFO) per share

 

$

3.53

 

 

$

2.96

 

 

$

0.57

 

 

 

19.3

%

 

 

Normalized FFO per share

 

$

3.52

 

 

$

2.99

 

 

$

0.53

 

 

 

17.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“We are pleased to have delivered outstanding operating results in 2022. I want to thank my 2,400 hard-working colleagues across Equity Residential for all they do every day to delight our customers,” said Mark J. Parrell, Equity Residential’s President and CEO. “Turning to 2023, we have seen the year begin with the usual sequential improvement in demand and rate. We expect to again deliver above trend same store operating results driven by the momentum embedded in our rent roll from a stellar 2022, continuing solid demand and limited expense growth, but also expect the slowing economy to dampen intraperiod rent growth during 2023. Overall, the fundamentals of our business remain strong. Our affluent resident demographic remains highly employable with the unemployment rate for college graduates at 2%. We also see elevated home ownership costs and manageable competitive new apartment supply as further positive factors.”

Recent Highlights

  • The Company reported a 10.6% increase in same store revenue for the full year 2022 compared to the full year 2021, driven by strong demand. Same store expense growth for the full year 2022 compared to the full year 2021 was a moderate 3.6%, benefitting from favorable real estate tax growth and declines in payroll expense primarily due to the Company's various innovation and centralization initiatives.
  • The Company has provided full year 2023 guidance with same store revenue growth expected to be between 4.5% and 6.0%.
  • During 2022, the Company was a net seller of approximately $633.2 million of attractively priced non-core properties, the proceeds from which were utilized to pay down near-term debt maturities, reducing refinancing needs for 2023.
  • In October 2022, the Company further enhanced liquidity and financial flexibility by entering into a new $2.5 billion unsecured revolving credit facility maturing in 2027 that replaces the prior facility of the same size that was set to mature in 2024.
  • The Company was recently recognized as one of America’s Most Responsible Companies for 2023 by Newsweek.

Full Year 2023 Guidance

The Company has provided guidance for its full year 2023 same store operating performance, EPS, FFO per share and Normalized FFO per share as listed below:

Same Store (includes Residential and Non-Residential):

Physical Occupancy

 

96.2%

Revenue change (1)

 

4.5% to 6.0%

Expense change

 

4.0% to 5.0%

Net Operating Income (NOI) change

 

4.75% to 6.25%

 

 

 

EPS (2)

 

$1.49 to $1.59

FFO per share (2)

 

$3.66 to $3.76

Normalized FFO per share (2)

 

$3.70 to $3.80

 

 

 

Transactions (3):

 

 

Consolidated rental acquisitions

 

Consolidated rental dispositions

 

(1)

We anticipate that revenue change will be negatively impacted by approximately 0.9% at the midpoint due to continuing elevated levels of forecasted Bad Debt, Net in 2023, as a result of a slower return to normal resident payment patterns due to local governmental restrictions primarily in California and a lack of governmental rental assistance.

(2)

The Company expects to incur additional casualty losses in the first quarter of 2023 related to Northern and Southern California rainstorms, estimates of which are included in guidance.

(3)

Given current uncertainty in the transaction environment, the Company's full year 2023 acquisition and disposition guidance reflects no anticipated activity.

The difference between the Company's full year 2022 actual EPS of $2.05 and the full year 2023 EPS guidance midpoint of $1.54 is due primarily to lower expected property sale gains and the items described below.

The difference between the Company's full year 2022 actual FFO of $3.53 per share and the full year 2023 FFO guidance midpoint of $3.71 per share is due primarily to the items described below.

The difference between the Company's full year 2022 actual Normalized FFO of $3.52 per share and the full year 2023 Normalized FFO guidance midpoint of $3.75 per share is due primarily to:

 

 

Positive/(Negative)
Impact

 

 

 

Full Year 2023 vs
Full Year 2022

 

Residential same store NOI

 

$

0.26

 

Lease-Up NOI

 

 

0.02

 

2023 and 2022 transaction activity impact on NOI, net

 

 

(0.02

)

Corporate overhead (1)

 

 

(0.02

)

Other items

 

 

(0.01

)

Net

 

$

0.23

 

(1)

Corporate overhead includes property management and general and administrative expenses.

The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 29 through 34 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 7, 31 and 32 of this release.

Results Per Share

The changes in EPS for the quarter and year ended December 31, 2022 compared to the same periods of 2021 are due primarily to lower property sale gains in the current periods, lower depreciation expense in the prior full year period, the various adjustment items listed on page 27 of this release and the items described below.

The per share changes in FFO for the quarter and year ended December 31, 2022 compared to the same periods of 2021 are due primarily to the various adjustment items listed on page 27 of this release and the items described below.

The per share changes in Normalized FFO are due primarily to:

 

 

Positive/(Negative) Impact

 

 

 

Fourth Quarter 2022 vs.
Fourth Quarter 2021

 

 

Full Year 2022 vs.
Full Year 2021

 

Residential same store NOI

 

$

0.12

 

 

$

0.54

 

Non-Residential same store NOI

 

 

 

 

0.01

 

Lease-Up NOI

 

 

0.01

 

 

 

0.05

 

2022 and 2021 transaction activity impact on NOI, net

 

(0.01

)

 

 

Interest expense, net

 

 

0.01

 

 

 

(0.02

)

Corporate overhead

 

 

 

 

(0.03

)

Other items (1)

 

 

(0.01

)

 

 

(0.02

)

Net

 

$

0.12

 

 

$

0.53

 

(1)

Included in this category was the negative impact in the fourth quarter of 2022 of approximately $0.01 per share primarily from a casualty loss at an East Coast property and rainstorm damage at properties located in Northern California.

Same Store Results

The following table shows the total same store results for the periods presented.

 

 

Fourth Quarter 2022 vs.
Fourth Quarter 2021

 

Fourth Quarter 2022 vs.
Third Quarter 2022

 

Full Year 2022 vs.
Full Year 2021

Apartment Units

 

75,473

 

78,107

 

72,872

Physical Occupancy

 

95.9% vs. 96.6%

 

95.9% vs. 96.4%

 

96.4% vs. 96.1%

 

 

 

 

 

 

 

Revenues

 

9.1%

 

0.8%

 

10.6%

Expenses

 

5.3%

 

(2.7%)

 

3.6%

NOI

 

10.9%

 

2.4%

 

14.1%

On page 11 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 33 of this release. Non-Residential operations account for approximately 3.7% of total revenues for the year ended December 31, 2022.

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.

 

 

Fourth Quarter 2022 vs.
Fourth Quarter 2021

 

 

Fourth Quarter 2022 vs.
Third Quarter 2022

 

 

Full Year 2022 vs.
Full Year 2021

 

 

 

% Change

 

 

% Change

 

 

% Change

 

Same Store Residential Revenues-

 

 

 

 

 

 

 

 

comparable period

Lease rates

 

 

10.4

%

 

 

1.7

%

 

 

8.5

%

Leasing Concessions

 

 

1.0

%

 

 

0.0

%

 

 

1.5

%

Vacancy gain (loss)

 

 

(1.1

%)

 

 

(0.3

%)

 

 

(0.1

%)

Bad Debt, Net (1)

 

 

(1.6

%)

 

 

(0.8

%)

 

 

0.2

%

Other (2)

 

 

0.8

%

 

 

0.2

%

 

 

0.6

%

Same Store Residential Revenues-

current period

 

9.5

%

 

 

0.8

%

 

 

10.7

%

(1)

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. The negative contributions to revenue growth in the quarter and sequentially in this category are due to lower resident payments from governmental rental assistance as the programs wind down.

(2)

Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items.

See page 12 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 72,872 same store apartment units):

 

 

Q3 2022

 

Q4 2022

 

January 2023 (1)

Physical Occupancy

 

96.5%

 

96.0%

 

95.8%

Percentage of Residents Renewing by quarter/month

53.7%

 

56.5%

 

57.0%

 

 

 

 

 

 

 

New Lease Change

 

13.0%

 

2.5%

 

1.4%

Renewal Rate Achieved

 

10.0%

 

8.5%

 

6.9%

Blended Rate

 

11.3%

 

5.8%

 

4.6%

(1)

January 2023 results are preliminary.

“Our fourth quarter 2022 and January 2023 operating statistics reflect usual seasonal moderation patterns, though slightly more pronounced. We were, however, pleased that our New Lease Change performance remained positive in the fourth quarter of 2022 and in January 2023, contrary to historical patterns,” said Michael L. Manelis, Equity Residential’s Executive Vice President and Chief Operating Officer. “While it is very early in the year, we are seeing typical sequential improvement in rents and leasing activity with New Lease Change and Blended Rate in January 2023 higher as compared to December 2022, suggesting that the year is beginning in a way consistent with normal demand trends."

Investment Activity

The Company did not acquire any operating properties during the fourth quarter of 2022. During the full year of 2022, the Company acquired a 172-unit apartment property in San Diego, built in 2020, for $113.0 million at an Acquisition Cap Rate of 3.5% as well as two unconsolidated land parcels for future development for approximately $56.9 million.

The Company did not sell any properties during the fourth quarter of 2022. During the full year of 2022, the Company sold three properties for a total sale price of approximately $746.2 million at a weighted average Disposition Yield of 3.4%, generating an Unlevered IRR of 5.3%.

Capital Markets Activity

In October 2022, the Company settled all of its outstanding forward equity sales agreements under its At-The-Market (ATM) share offering program, which were entered into during the third quarter of 2021. As a result, it issued 1,740,550 common shares at $80.22 per share and received total proceeds of approximately $139.6 million.

Also in October 2022, the Company entered into a new $2.5 billion unsecured revolving credit agreement with a group of 19 financial institutions. The new facility matures October 26, 2027 and has an interest rate of SOFR plus a spread (currently 0.725%) and an annual facility fee (currently 0.125%). Both the spread and the facility fee are dependent on the credit rating of the Company’s long-term debt. This facility replaced the Company’s existing $2.5 billion facility, which was scheduled to mature in November 2024.

First Quarter 2023 Guidance

The Company has established guidance ranges for the first quarter of 2023 EPS, FFO per share and Normalized FFO per share as listed below:

 

 

Q1 2023
Guidance

EPS

 

$0.28 to $0.32

FFO per share

 

$0.83 to $0.87

Normalized FFO per share

 

$0.84 to $0.88

The difference between the fourth quarter of 2022 actual EPS of $0.42 and the first quarter of 2023 EPS guidance midpoint of $0.30 is due primarily to the items described below.

The difference between the fourth quarter of 2022 actual FFO of $0.97 per share and the first quarter of 2023 FFO guidance midpoint of $0.85 per share is due primarily to the items described below.

The difference between the fourth quarter of 2022 actual Normalized FFO of $0.94 per share and the first quarter of 2023 Normalized FFO guidance midpoint of $0.86 per share is due primarily to:

 

 

Positive/(Negative)
Impact

 

 

 

First Quarter 2023 vs.
Fourth Quarter 2022

 

Residential same store NOI

 

$

(0.04

)

Interest expense, net

 

 

(0.01

)

Corporate overhead

 

 

(0.03

)

Net

 

$

(0.08

)

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 308 properties consisting of 79,597 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 web cast of the Company’s conference call discussing these results will take place tomorrow, Friday, February 10, 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.

Equity Residential

Consolidated Statements of Operations

(Amounts in thousands except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

Quarter Ended December 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

2,735,180

 

 

$

2,463,997

 

 

$

699,703

 

 

$

645,130

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

Property and maintenance

 

 

483,865

 

 

 

453,532

 

 

 

118,588

 

 

 

112,271

 

Real estate taxes and insurance

 

 

388,412

 

 

 

397,105

 

 

 

85,513

 

 

 

99,325

 

Property management

 

 

110,304

 

 

 

98,155

 

 

 

27,269

 

 

 

23,798

 

General and administrative

 

 

58,710

 

 

 

56,506

 

 

 

11,677

 

 

 

13,404

 

Depreciation

 

 

882,168

 

 

 

838,272

 

 

 

214,272

 

 

 

222,240

 

Total expenses

 

 

1,923,459

 

 

 

1,843,570

 

 

 

457,319

 

 

 

471,038

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain (loss) on sales of real estate properties

 

 

304,325

 

 

 

1,072,183

 

 

 

(21

)

 

 

484,560

 

Impairment

 

 

 

 

 

(16,769

)

 

 

 

 

 

(16,769

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

1,116,046

 

 

 

1,675,841

 

 

 

242,363

 

 

 

641,883

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

 

2,193

 

 

 

25,666

 

 

 

(2,651

)

 

 

373

 

Other expenses

 

 

(13,664

)

 

 

(19,275

)

 

 

(4,473

)

 

 

(8,367

)

Interest:

 

 

 

 

 

 

 

 

 

 

 

 

Expense incurred, net

 

 

(282,920

)

 

 

(272,473

)

 

 

(65,827

)

 

 

(69,740

)

Amortization of deferred financing costs

 

 

(8,729

)

 

 

(8,737

)

 

 

(2,308

)

 

 

(2,565

)

Income before income and other taxes, income (loss) from

investments in unconsolidated entities and net gain (loss)

on sales of land parcels

 

 

812,926

 

 

 

1,401,022

 

 

 

167,104

 

 

 

561,584

 

Income and other tax (expense) benefit

 

 

(900

)

 

 

(915

)

 

 

(175

)

 

 

(236

)

Income (loss) from investments in unconsolidated entities

 

 

(5,031

)

 

 

(3,398

)

 

 

(1,575

)

 

 

(370

)

Net gain (loss) on sales of land parcels

 

 

 

 

 

5

 

 

 

 

 

 

 

Net income

 

 

806,995

 

 

 

1,396,714

 

 

 

165,354

 

 

 

560,978

 

Net (income) loss attributable to Noncontrolling Interests:

 

 

 

 

 

 

 

 

 

 

 

 

Operating Partnership

 

 

(26,310

)

 

 

(45,900

)

 

 

(5,286

)

 

 

(17,997

)

Partially Owned Properties

 

 

(3,774

)

 

 

(17,964

)

 

 

(1,048

)

 

 

(16,007

)

Net income attributable to controlling interests

 

 

776,911

 

 

 

1,332,850

 

 

 

159,020

 

 

 

526,974

 

Preferred distributions

 

 

(3,090

)

 

 

(3,090

)

 

 

(772

)

 

 

(772

)

Net income available to Common Shares

 

$

773,821

 

 

$

1,329,760

 

 

$

158,248

 

 

$

526,202

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – basic:

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

2.06

 

 

$

3.56

 

 

$

0.42

 

 

$

1.40

 

Weighted average Common Shares outstanding

 

 

376,209

 

 

 

373,833

 

 

 

377,689

 

 

 

374,897

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

2.05

 

 

$

3.54

 

 

$

0.42

 

 

$

1.40

 

Weighted average Common Shares outstanding

 

 

389,450

 

 

 

388,089

 

 

 

390,245

 

 

 

389,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions declared per Common Share outstanding

 

$

2.50

 

 

$

2.41

 

 

$

0.625

 

 

$

0.6025

 

Equity Residential

Consolidated Statements of Funds From Operations and Normalized Funds From Operations

(Amounts in thousands except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

Quarter Ended December 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income

 

$

806,995

 

 

$

1,396,714

 

 

$

165,354

 

 

$

560,978

 

Net (income) loss attributable to Noncontrolling Interests – Partially

Owned Properties

 

(3,774

)

 

 

(17,964

)

 

 

(1,048

)

 

 

(16,007

)

Preferred distributions

 

 

(3,090

)

 

 

(3,090

)

 

 

(772

)

 

 

(772

)

Net income available to Common Shares and Units

 

 

800,131

 

 

 

1,375,660

 

 

 

163,534

 

 

 

544,199

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

882,168

 

 

 

838,272

 

 

 

214,272

 

 

 

222,240

 

Depreciation – Non-real estate additions

 

 

(4,306

)

 

 

(4,277

)

 

 

(1,117

)

 

 

(1,049

)

Depreciation – Partially Owned Properties

 

 

(2,640

)

 

 

(3,673

)

 

 

(543

)

 

 

(997

)

Depreciation – Unconsolidated Properties

 

 

2,898

 

 

 

2,487

 

 

 

1,001

 

 

 

620

 

Net (gain) loss on sales of unconsolidated entities - operating

assets

 

 

(9

)

 

 

(1,304

)

 

 

 

 

 

(1,300

)

Net (gain) loss on sales of real estate properties

 

 

(304,325

)

 

 

(1,072,183

)

 

 

21

 

 

 

(484,560

)

Noncontrolling Interests share of gain (loss) on sales

of real estate properties

 

 

 

 

 

15,650

 

 

 

 

 

 

15,650

 

FFO available to Common Shares and Units

 

 

1,373,917

 

 

 

1,150,632

 

 

 

377,168

 

 

 

294,803

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments (see note for additional detail):

 

 

 

 

 

 

 

 

 

 

 

 

Impairment – non-operating real estate assets

 

 

 

 

 

16,769

 

 

 

 

 

 

16,769

 

Write-off of pursuit costs

 

 

4,780

 

 

 

6,526

 

 

1,484

 

 

 

2,969

 

Debt extinguishment and preferred share redemption (gains)

losses

 

 

4,664

 

 

 

744

 

 

 

348

 

 

 

480

 

Non-operating asset (gains) losses

 

 

2,368

 

 

 

(22,283

)

 

 

3,542

 

 

 

731

 

Other miscellaneous items

 

 

(13,901

)

 

 

8,976

 

 

 

(15,733

)

 

 

4,456

 

Normalized FFO available to Common Shares and Units

 

$

1,371,828

 

 

$

1,161,364

 

 

$

366,809

 

 

$

320,208

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

$

1,377,007

 

 

$

1,153,722

 

 

$

377,940

 

 

$

295,575

 

Preferred distributions

 

 

(3,090

)

 

 

(3,090

)

 

 

(772

)

 

 

(772

)

FFO available to Common Shares and Units

 

$

1,373,917

 

 

$

1,150,632

 

 

$

377,168

 

 

$

294,803

 

FFO per share and Unit – basic

 

$

3.54

 

 

$

2.98

 

 

$

0.97

 

 

$

0.76

 

FFO per share and Unit – diluted

 

$

3.53

 

 

$

2.96

 

 

$

0.97

 

 

$

0.76

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Normalized FFO

 

$

1,374,918

 

 

$

1,164,454

 

 

$

367,581

 

 

$

320,980

 

Preferred distributions

 

 

(3,090

)

 

 

(3,090

)

 

 

(772

)

 

 

(772

)

Normalized FFO available to Common Shares and Units

 

$

1,371,828

 

 

$

1,161,364

 

 

$

366,809

 

 

$

320,208

 

Normalized FFO per share and Unit – basic

 

$

3.54

 

 

$

3.01

 

 

$

0.94

 

 

$

0.83

 

Normalized FFO per share and Unit – diluted

 

$

3.52

 

 

$

2.99

 

 

$

0.94

 

 

$

0.82

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average Common Shares and Units outstanding – basic

 

 

388,045

 

 

 

386,096

 

 

 

389,357

 

 

 

386,851

 

Weighted average Common Shares and Units outstanding – diluted

 

389,450

 

 

 

388,089

 

 

 

390,245

 

 

 

389,000

 

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)

 

 

 

 

 

 

 

 

 

December 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

ASSETS

 

 

 

 

 

 

Land

 

$

5,580,878

 

 

$

5,814,790

 

Depreciable property

 

 

22,334,369

 

 

 

22,370,811

 

Projects under development

 

 

112,940

 

 

 

24,307

 

Land held for development

 

 

60,567

 

 

 

62,998

 

Investment in real estate

 

 

28,088,754

 

 

 

28,272,906

 

Accumulated depreciation

 

 

(9,027,850

)

 

 

(8,354,282

)

Investment in real estate, net

 

 

19,060,904

 

 

 

19,918,624

 

Investments in unconsolidated entities1

 

 

279,024

 

 

 

127,448

 

Cash and cash equivalents

 

 

53,869

 

 

 

123,832

 

Restricted deposits

 

 

83,303

 

 

 

236,404

 

Right-of-use assets

 

 

462,956

 

 

 

474,713

 

Other assets

 

 

278,206

 

 

 

288,220

 

Total assets

 

$

20,218,262

 

 

$

21,169,241

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Mortgage notes payable, net

 

$

1,953,438

 

 

$

2,191,201

 

Notes, net

 

 

5,342,329

 

 

 

5,835,222

 

Line of credit and commercial paper

 

 

129,955

 

 

 

315,030

 

Accounts payable and accrued expenses

 

 

96,028

 

 

 

107,013

 

Accrued interest payable

 

 

66,310

 

 

 

69,510

 

Lease liabilities

 

 

308,748

 

 

 

312,335

 

Other liabilities

 

 

306,941

 

 

 

353,102

 

Security deposits

 

 

68,940

 

 

 

66,141

 

Distributions payable

 

 

244,621

 

 

 

233,502

 

Total liabilities

 

 

8,517,310

 

 

 

9,483,056

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable Noncontrolling Interests – Operating Partnership

 

 

318,273

 

 

 

498,977

 

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 December 31, 2022 and December 31, 2021

 

 

37,280

 

 

 

37,280

 

Common Shares of beneficial interest, $0.01 par value;

1,000,000,000 shares authorized; 378,429,708 shares issued

and outstanding as of December 31, 2022 and 375,527,195

shares issued and outstanding as of December 31, 2021

 

 

3,784

 

 

 

3,755

 

Paid in capital

 

 

9,476,085

 

 

 

9,121,122

 

Retained earnings

 

 

1,658,837

 

 

 

1,827,063

 

Accumulated other comprehensive income (loss)

 

 

(2,547

)

 

 

(34,272

)

Total shareholders’ equity

 

 

11,173,439

 

 

 

10,954,948

 

Noncontrolling Interests:

 

 

 

 

 

 

Operating Partnership

 

 

209,961

 

 

 

214,094

 

Partially Owned Properties

 

 

(721

)

 

 

18,166

 

Total Noncontrolling Interests

 

 

209,240

 

 

 

232,260

 

Total equity

 

 

11,382,679

 

 

 

11,187,208

 

Total liabilities and equity

 

$

20,218,262

 

 

$

21,169,241

 

1 Includes $218.0 million and $72.5 million in unconsolidated development projects as of December 31, 2022 and December 31, 2021, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects.

Equity Residential

Portfolio Summary

As of December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of
Stabilized

 

 

Average

 

 

 

 

 

 

Apartment

 

 

Budgeted

 

 

Rental

 

Markets/Metro Areas

 

Properties

 

 

Units

 

 

NOI

 

 

Rate

 

Established Markets:

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

66

 

 

 

15,259

 

 

 

18.2

%

 

$

2,773

 

Orange County

 

 

13

 

 

 

4,028

 

 

 

5.2

%

 

 

2,685

 

San Diego

 

 

12

 

 

 

2,878

 

 

 

4.0

%

 

 

2,894

 

Subtotal – Southern California

 

 

91

 

 

 

22,165

 

 

 

27.4

%

 

 

2,772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

44

 

 

 

11,790

 

 

 

15.9

%

 

 

3,229

 

Washington, D.C.

 

 

47

 

 

 

14,716

 

 

 

15.3

%

 

 

2,531

 

New York

 

 

34

 

 

 

8,536

 

 

 

14.0

%

 

 

4,378

 

Boston

 

 

27

 

 

 

7,170

 

 

 

11.5

%

 

 

3,373

 

Seattle

 

 

46

 

 

 

9,525

 

 

 

11.0

%

 

 

2,575

 

Subtotal – Established Markets

 

 

289

 

 

 

73,902

 

 

 

95.1

%

 

 

3,016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expansion Markets:

 

 

 

 

 

 

 

 

 

 

 

 

Denver

 

 

8

 

 

 

2,498

 

 

 

2.7

%

 

 

2,372

 

Atlanta

 

 

4

 

 

 

1,215

 

 

 

1.1

%

 

 

2,120

 

Dallas/Ft. Worth

 

 

4

 

 

 

1,241

 

 

 

0.7

%

 

 

1,904

 

Austin

 

 

3

 

 

 

741

 

 

 

0.4

%

 

 

1,853

 

Subtotal – Expansion Markets

 

 

19

 

 

 

5,695

 

 

 

4.9

%

 

 

2,153

 

Total

 

 

308

 

 

 

79,597

 

 

 

100.0

%

 

$

2,956

 

 

 

 

Properties

 

Apartment Units

Wholly Owned Properties

 

293

 

76,483

Partially Owned Properties – Consolidated

 

15

 

3,114

 

 

308

 

79,597

Note: Projects under development are not included in the Portfolio Summary until construction has been completed.

Equity Residential

 

Portfolio Rollforward Q4 2022

($ in thousands)

 

 

 

 

 

 

 

 

 

Properties

 

 

Apartment
Units

 

9/30/2022

 

 

308

 

 

 

79,594

 

 

 

 

 

 

 

 

Configuration Changes

 

 

 

 

 

3

 

12/31/2022

 

 

308

 

 

 

79,597

 

 

Portfolio Rollforward 2022

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Properties

 

 

Apartment
Units

 

 

Purchase
Price

 

 

Acquisition
Cap Rate

 

12/31/2021

 

 

310

 

 

 

80,407

 

 

 

 

 

 

 

Acquisitions:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties

 

 

1

 

 

 

172

 

 

$

113,000

 

 

 

3.5

%

Unconsolidated Land Parcels (1)

 

 

 

 

 

 

 

$

56,886

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Price

 

 

Disposition
Yield

 

Dispositions:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties

 

 

(3

)

 

 

(945

)

 

$

(746,150

)

 

 

(3.4

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

Configuration Changes

 

 

 

 

 

(37

)

 

 

 

 

 

 

12/31/2022

 

 

308

 

 

 

79,597

 

 

 

 

 

 

 

(1)

 

The Company entered into separate unconsolidated joint ventures for the purpose of developing vacant land parcels in suburban Dallas/Ft. Worth, TX and suburban Boston, MA. The purchase price listed represents the total consideration for the closing of the respective joint ventures. The Company's total investment in these two joint ventures is approximately $65.9 million as of December 31, 2022.

Equity Residential

 

Fourth Quarter 2022 vs. Fourth Quarter 2021

Same Store Results/Statistics Including 75,473 Same Store Apartment Units

($ in thousands except for Average Rental Rate)

 

 

 

 

Fourth Quarter 2022

 

Fourth Quarter 2021

 

 

 

Residential

 

 

%
Change

 

Non-
Residential

 

 

%
Change

 

Total

 

 

%
Change

 

 

 

Residential

 

 

Non-
Residential

 

 

Total

 

Revenues

 

$

643,790

 

(1)

9.5%

 

$

23,662

 

 

0.2%

 

$

667,452

 

 

9.1%

 

Revenues

 

$

588,014

 

 

$

23,622

 

 

$

611,636

 

Expenses

 

$

200,353

 

 

5.3%

 

$

6,348

 

 

4.8%

 

$

206,701

 

 

5.3%

 

Expenses

 

$

190,219

 

 

$

6,056

 

 

$

196,275

 

NOI

 

$

443,437

 

 

11.5%

 

$

17,314

 

 

(1.4%)

 

$

460,751

 

 

10.9%

 

NOI

 

$

397,795

 

 

$

17,566

 

 

$

415,361

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

 

$

2,966

 

 

10.3%

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

 

$

2,689

 

 

 

 

 

 

 

Physical Occupancy

 

 

95.9

%

 

(0.7%)

 

 

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

 

96.6

%

 

 

 

 

 

 

Turnover

 

 

9.3

%

 

(0.3%)

 

 

 

 

 

 

 

 

 

 

 

Turnover

 

 

9.6

%

 

 

 

 

 

 

 

Fourth Quarter 2022 vs. Third Quarter 2022

Same Store Results/Statistics Including 78,107 Same Store Apartment Units

($ in thousands except for Average Rental Rate)

 

 

 

 

Fourth Quarter 2022

 

Third Quarter 2022

 

 

 

Residential

 

 

%
Change

 

Non-
Residential

 

 

%
Change

 

Total

 

 

%
Change

 

 

 

Residential

 

 

Non-
Residential

 

 

Total

 

Revenues

 

$

660,913

 

(1)

0.8%

 

$

24,330

 

 

0.8%

 

$

685,243

 

 

0.8%

 

Revenues

 

$

655,951

 

 

$

24,125

 

 

$

680,076

 

Expenses

 

$

205,678

 

 

(2.8%)

 

$

6,426

 

 

2.6%

 

$

212,104

 

 

(2.7%)

 

Expenses

 

$

211,654

 

 

$

6,263

 

 

$

217,917

 

NOI

 

$

455,235

 

 

2.5%

 

$

17,904

 

 

0.2%

 

$

473,139

 

 

2.4%

 

NOI

 

$

444,297

 

 

$

17,862

 

 

$

462,159

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

 

$

2,944

 

 

1.3%

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

 

$

2,905

 

 

 

 

 

 

 

Physical Occupancy

 

 

95.9

%

 

(0.5%)

 

 

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

 

96.4

%

 

 

 

 

 

 

Turnover

 

 

9.4

%

 

(4.6%)

 

 

 

 

 

 

 

 

 

 

 

Turnover

 

 

14.0

%

 

 

 

 

 

 

 

2022 vs. 2021

Same Store Results/Statistics Including 72,872 Same Store Apartment Units

($ in thousands except for Average Rental Rate)

 

 

 

 

2022

 

2021

 

 

 

Residential

 

 

%
Change

 

Non-
Residential

 

 

%
Change

 

Total

 

 

%
Change

 

 

 

Residential

 

 

Non-
Residential

 

 

Total

 

Revenues

 

$

2,441,522

 

(1)

10.7%

 

$

92,055

 

 

5.8%

 

$

2,533,577

 

 

10.6%

 

Revenues

 

$

2,204,625

 

 

$

86,979

 

 

$

2,291,604

 

Expenses

 

$

778,206

 

 

3.6%

 

$

24,085

 

 

3.6%

 

$

802,291

 

 

3.6%

 

Expenses

 

$

751,250

 

 

$

23,254

 

 

$

774,504

 

NOI

 

$

1,663,316

 

 

14.4%

 

$

67,970

 

 

6.7%

 

$

1,731,286

 

 

14.1%

 

NOI

 

$

1,453,375

 

 

$

63,725

 

 

$

1,517,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

 

$

2,898

 

 

10.4%

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

 

$

2,625

 

 

 

 

 

 

 

Physical Occupancy

 

 

96.4

%

 

0.3%

 

 

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

 

96.1

%

 

 

 

 

 

 

Turnover

 

 

42.8

%

 

(1.9%)

 

 

 

 

 

 

 

 

 

 

 

Turnover

 

 

44.7

%

 

 

 

 

 

 

(1)

See page 12 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.

Equity Residential

 

Same Store Residential Revenues – GAAP to Cash Basis (1)

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Fourth Quarter 2022 vs. Fourth Quarter 2021

 

 

Fourth Quarter 2022 vs. Third Quarter 2022

 

 

2022 vs. 2021

 

 

75,473 Same Store Apartment Units

 

 

78,107 Same Store Apartment Units

 

 

72,872 Same Store Apartment Units

 

 

Q4 2022

 

 

Q4 2021

 

 

Q4 2022

 

 

Q3 2022

 

 

2022

 

 

2021

 

Same Store Residential Revenues (GAAP Basis)

$

643,790

 

 

$

588,014

 

 

$

660,913

 

 

$

655,951

 

 

$

2,441,522

 

 

$

2,204,625

 

Leasing Concessions amortized

 

1,346

 

 

 

7,050

 

 

 

1,697

 

 

 

1,652

 

 

 

7,420

 

 

 

41,344

 

Leasing Concessions granted

 

(2,714

)

 

 

(569

)

 

 

(2,921

)

 

 

(641

)

 

 

(5,557

)

 

 

(26,834

)

Same Store Residential Revenues with Leasing

Concessions on a cash basis

$

642,422

 

 

$

594,495

 

 

$

659,689

 

 

$

656,962

 

 

$

2,443,385

 

 

$

2,219,135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% change - GAAP revenue

 

9.5

%

 

 

 

 

 

0.8

%

 

 

 

 

 

10.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% change - cash revenue

 

8.1

%

 

 

 

 

 

0.4

%

 

 

 

 

 

10.1

%

 

 

 

(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 72,872 Same Store Apartment Units

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2022

 

 

Q3 2022

 

 

Q2 2022

 

 

Q1 2022

 

 

Q4 2021

 

Same store revenues

 

$

651,396

 

 

$

647,237

 

 

$

633,755

 

 

$

601,189

 

 

$

597,100

 

Same store expenses

 

 

201,304

 

 

 

203,749

 

 

 

195,775

 

 

 

201,463

 

 

 

191,032

 

Same store NOI

(includes Residential and Non-Residential)

 

$

450,092

 

 

$

443,488

 

 

$

437,980

 

 

$

399,726

 

 

$

406,068

 

Equity Residential

 

Same Store Resident/Tenant Accounts Receivable Balances

Including 72,872 Same Store Apartment Units

($ in thousands)

 

 

 

 

 

 

 

 

 

Residential

 

 

Non-Residential

 

Balance Sheet (Other assets):

 

December 31, 2022

 

 

September 30, 2022

 

 

December 31, 2022

 

 

September 30, 2022

 

Resident/tenant accounts receivable balances

$

34,240

 

 

$

33,159

 

 

$

2,767

 

 

$

3,915

 

Allowance for doubtful accounts

 

(30,265

)

 

 

(29,212

)

 

 

(2,107

)

 

 

(2,735

)

Net receivable balances

$

3,975

 

 

$

3,947

 

 

$

660

 

 

$

1,180

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line receivable balances

 

$

2,746

 

(1)

$

1,496

 

 

$

12,139

 

 

$

12,433

 

(1)

 

Total same store Residential Leasing Concessions granted in the fourth quarter of 2022 were approximately $2.5 million. The straight-line receivable balance of $2.7 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in 2023.

 

Same Store Residential Bad Debt

Including 72,872 Same Store Apartment Units

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement (Rental income) (1):

 

Q4 2022

 

 

Q3 2022

 

 

Q4 2021

 

 

2022

 

 

2021

 

Bad Debt, Net

 

$

10,704

 

 

$

5,860

 

 

$

1,239

 

 

$

24,707

 

 

$

29,606

 

% of Same Store Residential Revenues

 

 

1.7

%

 

 

0.9

%

 

 

0.2

%

 

 

1.0

%

 

 

1.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Governmental rental assistance received

 

$

1,945

 

 

$

6,742

 

 

$

16,008

 

 

$

32,426

 

 

$

32,793

 

(1)

Bad Debt, Net benefited in 2021 and the first half of 2022 from additional resident payments due to governmental rental assistance programs. The increases in Bad Debt, Net as well as % of Same Store Residential Revenues during the third and fourth quarters of 2022 were primarily due to these programs winding down.

Equity Residential

Fourth Quarter 2022 vs. Fourth Quarter 2021

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Year's Quarter

 

Markets/Metro Areas

 

Apartment
Units

 

 

Q4 2022
% of
Actual
NOI

 

 

Q4 2022
Average
Rental
Rate

 

 

Q4 2022
Weighted
Average
Physical
Occupancy %

 

 

Q4 2022
Turnover

 

 

Revenues

 

 

Expenses

 

 

NOI

 

 

Average
Rental
Rate

 

 

Physical
Occupancy

 

 

Turnover

 

Los Angeles

 

 

14,662

 

 

 

18.6

%

 

$

2,755

 

 

 

95.8

%

 

 

10.0

%

 

 

1.1

%

(1)

 

4.6

%

 

 

(0.3

%)

 

 

2.5

%

 

 

(1.4

%)

 

 

0.6

%

Orange County

 

 

4,028

 

 

 

5.6

%

 

 

2,685

 

 

 

96.7

%

 

 

8.7

%

 

 

9.5

%

(1)

 

8.8

%

 

 

9.7

%

 

 

10.6

%

 

 

(1.0

%)

 

 

1.3

%

San Diego

 

 

2,706

 

 

 

3.9

%

 

 

2,853

 

 

 

95.9

%

 

 

8.9

%

 

 

8.2

%

(1)

 

7.1

%

 

 

8.6

%

 

 

9.8

%

 

 

(1.3

%)

 

 

0.3

%

Subtotal – Southern California

 

 

21,396

 

 

 

28.1

%

 

 

2,754

 

 

 

96.0

%

 

 

9.6

%

 

 

3.4

%

 

 

5.5

%

 

 

2.7

%

 

 

4.8

%

 

 

(1.3

%)

 

 

0.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

11,368

 

 

 

16.8

%

 

 

3,227

 

 

 

95.6

%

 

 

9.4

%

 

 

8.3

%

(1)

 

7.5

%

 

 

8.6

%

 

 

9.1

%

 

 

(0.8

%)

 

 

(1.3

%)

Washington, D.C.

 

 

14,400

 

 

 

16.1

%

 

 

2,524

 

 

 

96.5

%

 

 

9.3

%

 

 

7.3

%

 

 

5.5

%

 

 

8.1

%

 

 

7.8

%

 

 

(0.5

%)

 

 

0.3

%

New York

 

 

8,536

 

 

 

14.1

%

 

 

4,378

 

 

 

96.7

%

 

 

7.6

%

 

 

21.9

%

 

 

4.6

%

 

 

38.9

%

 

 

22.9

%

 

 

(0.7

%)

 

 

0.5

%

Seattle

 

 

9,524

 

 

 

11.4

%

 

 

2,575

 

 

 

95.0

%

 

 

9.9

%

 

 

10.5

%

 

 

1.0

%

 

 

14.6

%

 

 

10.5

%

 

 

0.0

%

 

 

(1.5

%)

Boston

 

 

6,700

 

 

 

10.2

%

 

 

3,313

 

 

 

96.0

%

 

 

8.0

%

 

 

12.3

%

 

 

5.2

%

 

 

15.5

%

 

 

12.2

%

 

 

0.2

%

 

 

(1.3

%)

Denver

 

 

1,904

 

 

 

2.0

%

 

 

2,357

 

 

 

96.1

%

 

 

11.8

%

 

 

8.9

%

 

 

17.8

%

 

 

5.3

%

 

 

9.1

%

 

 

(0.3

%)

 

 

(2.9

%)

Other Expansion Markets

 

 

1,645

 

 

 

1.3

%

 

 

1,957

 

 

 

92.9

%

 

 

13.0

%

 

 

9.4

%

 

 

5.7

%

 

 

11.7

%

 

 

12.9

%

 

 

(2.9

%)

 

 

1.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

75,473

 

 

 

100.0

%

 

$

2,966

 

 

 

95.9

%

 

 

9.3

%

 

 

9.5

%

(2)

 

5.3

%

 

 

11.5

%

 

 

10.3

%

 

 

(0.7

%)

 

 

(0.3

%)

(1)

Excluding the negative impact of Bad Debt, Net which was primarily driven by a reduction in governmental rental assistance, same store revenue growth would have been 7.2%, 10.2%, 9.6% and 9.0% for Los Angeles, Orange County, San Diego and San Francisco, respectively.

(2)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 8.1% in the fourth quarter of 2022 compared to the fourth quarter of 2021. See page 12 for additional detail and reconciliations.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.3% of total revenues for the year ended December 31, 2022.

Equity Residential

Fourth Quarter 2022 vs. Third Quarter 2022

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Quarter

 

Markets/Metro Areas

 

Apartment
Units

 

 

Q4 2022
% of
Actual
NOI

 

 

Q4 2022
Average
Rental
Rate

 

 

Q4 2022
Weighted
Average
Physical
Occupancy %

 

 

Q4 2022
Turnover

 

 

Revenues

 

 

Expenses

 

 

NOI

 

 

Average
Rental
Rate

 

 

Physical
Occupancy

 

 

Turnover

 

Los Angeles

 

 

14,662

 

 

 

18.1

%

 

$

2,755

 

 

 

95.8

%

 

 

10.0

%

 

 

(1.5

%)

(1)

 

(2.4

%)

 

 

(1.2

%)

 

 

(0.4

%)

 

 

(1.1

%)

 

 

(0.7

%)

Orange County

 

 

4,028

 

 

 

5.4

%

 

 

2,685

 

 

 

96.7

%

 

 

8.7

%

 

 

0.4

%

(1)

 

(3.2

%)

 

 

1.5

%

 

 

0.8

%

 

 

(0.4

%)

 

 

(2.0

%)

San Diego

 

 

2,878

 

 

 

4.1

%

 

 

2,894

 

 

 

96.0

%

 

 

8.8

%

 

 

0.7

%

(1)

 

(1.9

%)

 

 

1.5

%

 

 

1.4

%

 

 

(0.7

%)

 

 

(2.4

%)

Subtotal – Southern California

 

 

21,568

 

 

 

27.6

%

 

 

2,761

 

 

 

96.0

%

 

 

9.6

%

 

 

(0.9

%)

 

 

(2.4

%)

 

 

(0.3

%)

 

 

0.1

%

 

 

(0.9

%)

 

 

(1.2

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

11,368

 

 

 

16.3

%

 

 

3,227

 

 

 

95.6

%

 

 

9.4

%

 

 

0.2

%

(1)

 

(2.0

%)

 

 

1.2

%

 

 

0.5

%

 

 

(0.3

%)

 

 

(3.9

%)

Washington, D.C.

 

 

14,716

 

 

 

16.2

%

 

 

2,531

 

 

 

96.5

%

 

 

9.3

%

 

 

0.9

%

 

 

(5.6

%)

 

 

4.4

%

 

 

1.3

%

 

 

(0.4

%)

 

 

(4.9

%)

New York

 

 

8,536

 

 

 

13.7

%

 

 

4,378

 

 

 

96.7

%

 

 

7.6

%

 

 

3.2

%

 

 

3.7

%

 

 

2.9

%

 

 

3.5

%

 

 

(0.2

%)

 

 

(7.2

%)

Seattle

 

 

9,524

 

 

 

11.1

%

 

 

2,575

 

 

 

95.0

%

 

 

9.9

%

 

 

0.1

%

 

 

(3.0

%)

 

 

1.4

%

 

 

0.7

%

 

 

(0.5

%)

 

 

(6.0

%)

Boston

 

 

6,700

 

 

 

10.0

%

 

 

3,313

 

 

 

96.0

%

 

 

8.0

%

 

 

1.5

%

 

 

(2.2

%)

 

 

3.1

%

 

 

1.5

%

 

 

0.1

%

 

 

(9.7

%)

Denver

 

 

2,498

 

 

 

2.6

%

 

 

2,372

 

 

 

96.1

%

 

 

12.0

%

 

 

1.0

%

 

 

3.0

%

 

 

0.2

%

 

 

1.4

%

 

 

(0.3

%)

 

 

(8.1

%)

Other Expansion Markets

 

 

3,197

 

 

 

2.5

%

 

 

1,976

 

 

 

92.8

%

 

 

13.0

%

 

 

3.5

%

 

 

(32.7

%)

 

 

44.3

%

 

 

6.5

%

 

 

(2.8

%)

 

 

(3.9

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

78,107

 

 

 

100.0

%

 

$

2,944

 

 

 

95.9

%

 

 

9.4

%

 

 

0.8

%

(2)

 

(2.8

%)

 

 

2.5

%

 

 

1.3

%

 

 

(0.5

%)

 

 

(4.6

%)

(1)

Excluding the negative impact of Bad Debt, Net which was primarily driven by a reduction in governmental rental assistance, same store revenue growth would have been 0.8%, 1.7%, 1.7% and 1.3% for Los Angeles, Orange County, San Diego and San Francisco, respectively.

(2)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 0.4% in the fourth quarter of 2022 compared to the third quarter of 2022. See page 12 for additional detail and reconciliations.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.3% of total revenues for the year ended December 31, 2022.

Equity Residential

2022 vs. 2021

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Year

 

Markets/Metro Areas

 

Apartment
Units

 

 

2022
% of
Actual
NOI

 

 

2022
Average
Rental
Rate

 

 

2022
Weighted
Average
Physical
Occupancy %

 

 

2022
Turnover

 

 

Revenues

 

 

Expenses

 

 

NOI

 

 

Average
Rental
Rate

 

 

Physical
Occupancy

 

 

Turnover

 

Los Angeles

 

 

14,662

 

 

 

19.8

%

 

$

2,733

 

 

 

96.6

%

 

 

38.4

%

 

 

8.7

%

(1)

 

3.5

%

 

 

11.0

%

 

 

9.0

%

 

 

(0.2

%)

 

 

(3.1

%)

Orange County

 

 

4,028

 

 

 

5.8

%

 

 

2,614

 

 

 

97.0

%

 

 

34.5

%

 

 

12.1

%

(1)

 

5.4

%

 

 

14.0

%

 

 

12.8

%

 

 

(0.7

%)

 

 

(0.1

%)

San Diego

 

 

2,706

 

 

 

4.0

%

 

 

2,766

 

 

 

96.7

%

 

 

38.1

%

 

 

10.2

%

(1)

 

5.4

%

 

 

11.6

%

 

 

11.4

%

 

 

(0.9

%)

 

 

(5.0

%)

Subtotal – Southern California

 

 

21,396

 

 

 

29.6

%

 

 

2,715

 

 

 

96.7

%

 

 

37.6

%

 

 

9.5

%

 

 

4.0

%

 

 

11.7

%

 

 

10.0

%

 

 

(0.4

%)

 

 

(2.8

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

11,368

 

 

 

17.4

%

 

 

3,152

 

 

 

96.1

%

 

 

41.5

%

 

 

9.4

%

(1)

 

5.2

%

 

 

11.3

%

 

 

8.3

%

 

 

0.9

%

 

 

(6.5

%)

Washington, D.C.

 

 

14,187

 

 

 

16.2

%

 

 

2,456

 

 

 

96.8

%

 

 

43.1

%

 

 

5.8

%

 

 

5.5

%

 

 

5.9

%

 

 

5.5

%

 

 

0.3

%

 

 

(2.2

%)

New York

 

 

8,536

 

 

 

13.5

%

 

 

4,068

 

 

 

96.9

%

 

 

42.4

%

 

 

19.9

%

 

 

2.3

%

 

 

39.0

%

 

 

17.6

%

 

 

1.8

%

 

 

4.2

%

Seattle

 

 

9,331

 

 

 

11.4

%

 

 

2,497

 

 

 

95.1

%

 

 

51.6

%

 

 

10.1

%

 

 

(2.3

%)

 

 

16.0

%

 

 

10.7

%

 

 

(0.5

%)

 

 

0.7

%

Boston

 

 

6,430

 

 

 

10.0

%

 

 

3,208

 

 

 

96.2

%

 

 

45.3

%

 

 

11.7

%

 

 

5.1

%

 

 

14.9

%

 

 

11.2

%

 

 

0.5

%

 

 

(1.8

%)

Denver

 

 

1,624

 

 

 

1.9

%

 

 

2,299

 

 

 

96.7

%

 

 

60.3

%

 

 

11.4

%

 

 

10.7

%

 

 

11.7

%

 

 

11.3

%

 

 

0.1

%

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

72,872

 

 

 

100.0

%

 

$

2,898

 

 

 

96.4

%

 

 

42.8

%

 

 

10.7

%

(2)

 

3.6

%

 

 

14.4

%

 

 

10.4

%

 

 

0.3

%

 

 

(1.9

%)

(1)

Excluding the positive impact of Bad Debt, Net which was primarily driven by receipt of governmental rental assistance, same store revenue growth would have been 8.0%, 11.4% and 8.7% for Los Angeles, Orange County and San Francisco, respectively. In San Diego, same store revenue growth would have been 11.1% excluding the negative impact of Bad Debt, Net, which was primarily due to timing of governmental rental assistance.

(2)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 10.1% in the year ended December 31, 2022 compared to the year ended December 31, 2021. See page 12 for additional detail and reconciliations.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.3% of total revenues for the year ended December 31, 2022.

Equity Residential