CHICAGO--(BUSINESS WIRE)--
Equity Residential (NYSE: EQR) today reported results for the quarter and year ended December 31, 2023.
Fourth 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 December 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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0.82
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$
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0.42
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$
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0.40
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95.2
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%
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Funds from Operations (FFO) per share
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$
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1.00
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$
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0.97
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$
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0.03
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3.1
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%
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Normalized FFO (NFFO) per share
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$
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1.00
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$
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0.94
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$
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0.06
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6.4
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%
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Year Ended December 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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2.20
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$
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2.05
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$
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0.15
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7.3
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%
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Funds from Operations (FFO) per share
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$
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3.75
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$
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3.53
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$
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0.22
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6.2
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%
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Normalized FFO (NFFO) per share
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$
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3.78
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$
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3.52
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$
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0.26
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7.4
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%
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Recent Highlights
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Same store revenue increased 3.9% for the fourth quarter of 2023 compared to the fourth quarter of 2022, driven by strong demand.
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The Company has provided guidance for the full year 2024 with same store revenue growth expected to be between 2.0% and 3.0%.
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During the fourth quarter of 2023, the Company sold three properties located in our West Coast markets (San Francisco, Seattle and Los Angeles), consisting of 499 apartment units, for an aggregate sale price of approximately $184.5 million.
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During the fourth quarter of 2023, the Company repurchased and retired 864,386 of its common shares, at a weighted average purchase price of $56.79 per share, for an aggregate purchased amount of approximately $49.1 million. Following this repurchase activity, the Company’s Board of Trustees approved replenishing the Company’s share repurchase program authorization back to its original 13.0 million shares.
“We are pleased with our fourth quarter results as we finished the year in line with our expectations. I want to thank my colleagues across Equity Residential for their hard work and dedication to our customers and shareholders,” said Mark J. Parrell, Equity Residential’s President and CEO. “We enter 2024 well-positioned to post solid results on the operations side despite expectations of a slowing economy with continuing high employment levels in our target affluent renter demographic and a manageable apartment supply backdrop in our existing predominantly coastal footprint versus oversupplied Sunbelt markets. We are optimistic that in 2024 we will see a variety of favorable opportunities to deploy capital and have a team and a balance sheet well-prepared to do so.”
Full Year 2024 Guidance
The Company has provided guidance for its full year 2024 same store operating performance, EPS, FFO per share, Normalized FFO per share and transactions as listed below:
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Same Store (includes Residential and Non-Residential):
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Physical Occupancy
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95.9%
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Revenue change
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2.0% to 3.0%
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Expense change
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3.5% to 4.5%
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Net Operating Income (NOI) change
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1.0% to 2.6%
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EPS
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$2.91 to $3.01
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FFO per share
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$3.74 to $3.84
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Normalized FFO per share
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$3.80 to $3.90
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Transactions:
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Consolidated rental acquisitions
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$1.0B
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Consolidated rental dispositions
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$1.0B
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Transaction Accretion (Dilution)
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(25 basis points)
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The difference between the Company's full year 2023 actual EPS of $2.20 and the full year 2024 EPS guidance midpoint of $2.96 is due primarily to higher expected property sale gains and the items described below.
The difference between the Company's full year 2023 actual FFO of $3.75 per share and the full year 2024 FFO guidance midpoint of $3.79 per share is due primarily to lower expected non-operating gains on sale offset by the items described below.
The difference between the Company's full year 2023 actual Normalized FFO of $3.78 per share and the full year 2024 Normalized FFO guidance midpoint of $3.85 per share is due primarily to:
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Expected
Positive/(Negative)
Impact
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Full Year 2024 vs.
Full Year 2023
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Residential same store NOI
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$
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0.09
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Lease-Up NOI
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0.01
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2024 and 2023 transaction activity impact on NOI, net
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(0.03
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)
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Corporate overhead (1)
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(0.01
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)
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Other items
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0.01
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Net
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$
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0.07
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(1)
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Corporate overhead includes property management and general and administrative expenses.
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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 change in EPS for the quarter ended December 31, 2023 compared to the same period of 2022 is due primarily to higher property sale gains in the current period, the various adjustment items listed on page 27 of this release and the items described below. The change in EPS for the year end December 31, 2023 compared to the same period of 2022 is due primarily to lower property sale gains in the current 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, 2023 compared to the same periods of 2022 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:
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Positive/(Negative) Impact
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Fourth Quarter 2023 vs.
Fourth Quarter 2022
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Full Year 2023 vs.
Full Year 2022
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Residential same store NOI
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$
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0.06
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$
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0.28
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Lease-Up NOI
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–
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0.03
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2023 and 2022 transaction activity impact on NOI, net
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–
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(0.02
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)
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Interest expense, net
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(0.01
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)
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0.02
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Corporate overhead
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–
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(0.03
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)
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Other items
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0.01
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(0.02
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)
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Net
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$
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0.06
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$
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0.26
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Same Store Results
The following table shows the total same store results for the periods presented.
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Fourth Quarter 2023 vs.
Fourth Quarter 2022
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Fourth Quarter 2023 vs.
Third Quarter 2023
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Full Year 2023 vs.
Full Year 2022
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Apartment Units
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77,676
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78,163
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76,297
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Physical Occupancy
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95.8% vs. 95.8%
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95.8% vs. 96.0%
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95.9% vs. 96.3%
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Revenues
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3.9%
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0.6%
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5.6%
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Expenses
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1.3%
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(3.6%)
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4.3%
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NOI
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5.0%
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2.5%
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6.2%
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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 3.6% of total revenues for the year ended December 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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Fourth Quarter 2023 vs.
Fourth Quarter 2022
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Fourth Quarter 2023 vs.
Third Quarter 2023
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Full Year 2023 vs.
Full Year 2022
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% Change
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% Change
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% Change
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Same Store Residential Revenues-
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comparable period
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Lease rates
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3.5
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%
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0.3
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%
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6.2
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%
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Leasing Concessions
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(0.4
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%)
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(0.1
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%)
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(0.2
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%)
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Vacancy gain (loss)
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0.0
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%
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0.1
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%
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(0.5
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%)
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Bad Debt, Net (1)
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0.4
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%
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(0.1
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%)
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(0.4
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%)
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Other (2)
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0.5
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%
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0.1
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%
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0.6
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%
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Same Store Residential Revenues-
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current period
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4.0
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%
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0.3
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%
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5.7
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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. The comparable full year 2023 period change in Bad Debt, Net was negatively impacted by the much higher governmental rental assistance received in 2022 versus 2023. See page 13 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 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 76,297 same store apartment units):
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January 2024 (1)
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Q4 2023
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Q3 2023
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Physical Occupancy
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96.2%
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95.8%
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96.0%
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Percentage of Residents Renewing by quarter/month
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61.0%
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59.0%
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54.0%
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New Lease Change
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(3.7%)
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(4.5%)
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0.5%
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Renewal Rate Achieved
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4.9%
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5.1%
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5.5%
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Blended Rate
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1.0%
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0.8%
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3.1%
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(1)
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January 2024 results are preliminary as of January 25th and reflect the 2024 annual same store set including 77,472 apartment units.
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Investment Activity
The Company did not acquire any operating properties during the fourth quarter of 2023. During the full year of 2023, the Company has acquired four operating properties, consisting of 1,183 apartment units, for an aggregate purchase price of approximately $366.3 million at a weighted average Acquisition Cap Rate of 5.5%. The average age of the properties acquired in 2023 was approximately 1 year.
During the fourth quarter of 2023, the Company sold three properties located in our West Coast markets (San Francisco, Seattle and Los Angeles), consisting of 499 apartment units, for an aggregate sale price of approximately $184.5 million at a weighted average Disposition Yield of 5.8%, generating an Unlevered IRR of 14.4%. The average age of the properties sold in the fourth quarter of 2023 was approximately 40 years. During the full year of 2023, the Company sold 11 properties, consisting of 912 apartment units, for an aggregate sale price of approximately $379.9 million at a weighted average Disposition Yield of 5.5%, generating an Unlevered IRR of 11.4%. The average age of the properties sold in 2023 was approximately 30 years.
Subsequent to the end of the fourth quarter of 2023, the Company sold a property in each of the Boston and Orange County markets, consisting of a total of 404 apartment units, for an aggregate sale price of approximately $189.0 million at a weighted average Disposition Yield of 5.6%. The average age of the properties sold subsequent to the end of the fourth quarter of 2023 was approximately 41 years.
In 2023, the Company invested $282.8 million in Capital Expenditures to Real Estate for Same Store Properties. Approximately 40% of this spend was NOI-Enhancing. Of that amount, $79.3 million for 2,799 same store apartment units represented Renovation Expenditures with the remainder concentrated in sustainability and property-level technology spend. We expect a similar percentage of 2024 Capital Expenditures to Real Estate for Same Store Properties to be NOI-Enhancing.
Capital Markets Activity
During the fourth quarter of 2023, the Company repurchased and retired 864,386 of its common shares, at a weighted average purchase price of $56.79 per share, for an aggregate purchased amount of approximately $49.1 million. Following this repurchase activity, the Company’s Board of Trustees approved replenishing the Company’s share repurchase program authorization back to its original 13.0 million shares.
First Quarter 2024 Guidance
The Company has established guidance ranges for the first quarter of 2024 EPS, FFO per share and Normalized FFO per share as listed below:
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Q1 2024
Guidance
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EPS
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$0.77 to $0.81
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FFO per share
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$0.87 to $0.91
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Normalized FFO per share
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$0.88 to $0.92
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The difference between the fourth quarter of 2023 actual EPS of $0.82 and the first quarter of 2024 EPS guidance midpoint of $0.79 is due primarily to higher expected property sale gains and the items described below.
The difference between the fourth quarter of 2023 actual FFO of $1.00 per share and the first quarter of 2024 FFO guidance midpoint of $0.89 per share is due primarily to the items described below.
The difference between the fourth quarter of 2023 actual Normalized FFO of $1.00 per share and the first quarter of 2024 Normalized FFO guidance midpoint of $0.90 per share is due primarily to:
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Expected
Positive/(Negative)
Impact
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First Quarter 2024 vs.
Fourth Quarter 2023
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Residential same store NOI (1)
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$
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(0.05
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)
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2024 and 2023 transaction activity impact on NOI, net
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(0.01
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)
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Corporate overhead
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(0.03
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)
|
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Other items
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(0.01
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)
|
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Net
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$
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(0.10
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)
|
-
Residential same store NOI impact is primarily driven by higher expected real estate taxes and utilities in the first quarter of 2024 versus the fourth quarter of 2023. This pattern of higher operating expenses is typical between the fourth quarter of the current year and the first quarter of the following year.
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 302 properties consisting of 80,191 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 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, Wednesday, January 31, 2024 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
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Consolidated Statements of Operations
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(Amounts in thousands except per share data)
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(Unaudited)
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Year Ended December 31,
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Quarter Ended December 31,
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2023
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2022
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2023
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2022
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REVENUES
|
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|
|
|
|
|
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|
|
|
|
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Rental income
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|
$
|
2,873,964
|
|
|
$
|
2,735,180
|
|
|
$
|
727,500
|
|
|
$
|
699,703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and maintenance
|
|
|
514,575
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|
|
|
483,865
|
|
|
|
123,138
|
|
|
|
118,588
|
|
|
Real estate taxes and insurance
|
|
|
412,114
|
|
|
|
388,412
|
|
|
|
99,507
|
|
|
|
85,513
|
|
|
Property management
|
|
|
119,804
|
|
|
|
110,304
|
|
|
|
29,490
|
|
|
|
27,269
|
|
|
General and administrative
|
|
|
60,716
|
|
|
|
58,710
|
|
|
|
11,581
|
|
|
|
11,677
|
|
|
Depreciation
|
|
|
888,709
|
|
|
|
882,168
|
|
|
|
226,788
|
|
|
|
214,272
|
|
|
Total expenses
|
|
|
1,995,918
|
|
|
|
1,923,459
|
|
|
|
490,504
|
|
|
|
457,319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on sales of real estate properties
|
|
|
282,539
|
|
|
|
304,325
|
|
|
|
155,505
|
|
|
|
(21
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
1,160,585
|
|
|
|
1,116,046
|
|
|
|
392,501
|
|
|
|
242,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income
|
|
|
22,345
|
|
|
|
2,193
|
|
|
|
11,049
|
|
|
|
(2,651
|
)
|
|
Other expenses
|
|
|
(29,419
|
)
|
|
|
(13,664
|
)
|
|
|
(8,902
|
)
|
|
|
(4,473
|
)
|
|
Interest:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense incurred, net
|
|
|
(269,556
|
)
|
|
|
(282,920
|
)
|
|
|
(68,674
|
)
|
|
|
(65,827
|
)
|
|
Amortization of deferred financing costs
|
|
|
(8,941
|
)
|
|
|
(8,729
|
)
|
|
|
(1,918
|
)
|
|
|
(2,308
|
)
|
|
Income before income and other taxes, income (loss) from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investments in unconsolidated entities and net gain (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
on sales of land parcels
|
|
|
875,014
|
|
|
|
812,926
|
|
|
|
324,056
|
|
|
|
167,104
|
|
|
Income and other tax (expense) benefit
|
|
|
(1,148
|
)
|
|
|
(900
|
)
|
|
|
(256
|
)
|
|
|
(175
|
)
|
|
Income (loss) from investments in unconsolidated entities
|
|
|
(5,378
|
)
|
|
|
(5,031
|
)
|
|
|
(1,531
|
)
|
|
|
(1,575
|
)
|
|
Net income
|
|
|
868,488
|
|
|
|
806,995
|
|
|
|
322,269
|
|
|
|
165,354
|
|
|
Net (income) loss attributable to Noncontrolling Interests:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Partnership
|
|
|
(26,710
|
)
|
|
|
(26,310
|
)
|
|
|
(9,536
|
)
|
|
|
(5,286
|
)
|
|
Partially Owned Properties
|
|
|
(6,340
|
)
|
|
|
(3,774
|
)
|
|
|
(1,041
|
)
|
|
|
(1,048
|
)
|
|
Net income attributable to controlling interests
|
|
|
835,438
|
|
|
|
776,911
|
|
|
|
311,692
|
|
|
|
159,020
|
|
|
Preferred distributions
|
|
|
(3,090
|
)
|
|
|
(3,090
|
)
|
|
|
(772
|
)
|
|
|
(772
|
)
|
|
Net income available to Common Shares
|
|
$
|
832,348
|
|
|
$
|
773,821
|
|
|
$
|
310,920
|
|
|
$
|
158,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share – basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Common Shares
|
|
$
|
2.20
|
|
|
$
|
2.06
|
|
|
$
|
0.82
|
|
|
$
|
0.42
|
|
|
Weighted average Common Shares outstanding
|
|
|
378,773
|
|
|
|
376,209
|
|
|
|
379,247
|
|
|
|
377,689
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share – diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Common Shares
|
|
$
|
2.20
|
|
|
$
|
2.05
|
|
|
$
|
0.82
|
|
|
$
|
0.42
|
|
|
Weighted average Common Shares outstanding
|
|
|
390,897
|
|
|
|
389,450
|
|
|
|
390,787
|
|
|
|
390,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions declared per Common Share outstanding
|
|
$
|
2.65
|
|
|
$
|
2.50
|
|
|
$
|
0.6625
|
|
|
$
|
0.625
|
|
|
Equity Residential
|
|
Consolidated Statements of Funds From Operations and Normalized Funds From Operations
|
|
(Amounts in thousands except per share and Unit data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
Quarter Ended December 31,
|
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
Net income
|
|
$
|
868,488
|
|
|
$
|
806,995
|
|
|
$
|
322,269
|
|
|
$
|
165,354
|
|
|
Net (income) loss attributable to Noncontrolling Interests – Partially
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned Properties
|
|
|
(6,340
|
)
|
|
|
(3,774
|
)
|
|
|
(1,041
|
)
|
|
|
(1,048
|
)
|
|
Preferred distributions
|
|
|
(3,090
|
)
|
|
|
(3,090
|
)
|
|
|
(772
|
)
|
|
|
(772
|
)
|
|
Net income available to Common Shares and Units
|
|
|
859,058
|
|
|
|
800,131
|
|
|
|
320,456
|
|
|
|
163,534
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
888,709
|
|
|
|
882,168
|
|
|
|
226,788
|
|
|
|
214,272
|
|
|
Depreciation – Non-real estate additions
|
|
|
(4,268
|
)
|
|
|
(4,306
|
)
|
|
|
(977
|
)
|
|
|
(1,117
|
)
|
|
Depreciation – Partially Owned Properties
|
|
|
(2,130
|
)
|
|
|
(2,640
|
)
|
|
|
(531
|
)
|
|
|
(543
|
)
|
|
Depreciation – Unconsolidated Properties
|
|
|
2,860
|
|
|
|
2,898
|
|
|
|
939
|
|
|
|
1,001
|
|
|
Net (gain) loss on sales of unconsolidated entities - operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
assets
|
|
|
—
|
|
|
|
(9
|
)
|
|
|
—
|
|
|
|
—
|
|
|
Net (gain) loss on sales of real estate properties
|
|
|
(282,539
|
)
|
|
|
(304,325
|
)
|
|
|
(155,505
|
)
|
|
|
21
|
|
|
Noncontrolling Interests share of gain (loss) on sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of real estate properties
|
|
|
2,336
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
FFO available to Common Shares and Units
|
|
|
1,464,026
|
|
|
|
1,373,917
|
|
|
|
391,170
|
|
|
|
377,168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments (see note for additional detail):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-off of pursuit costs
|
|
|
3,647
|
|
|
|
4,780
|
|
|
|
908
|
|
|
|
1,484
|
|
|
Debt extinguishment and preferred share redemption (gains)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
losses
|
|
|
1,143
|
|
|
|
4,664
|
|
|
|
—
|
|
|
|
348
|
|
|
Non-operating asset (gains) losses
|
|
|
(13,323
|
)
|
|
|
2,368
|
|
|
|
(8,588
|
)
|
|
|
3,542
|
|
|
Other miscellaneous items
|
|
|
21,588
|
|
|
|
(13,901
|
)
|
|
|
6,757
|
|
|
|
(15,733
|
)
|
|
Normalized FFO available to Common Shares and Units
|
|
$
|
1,477,081
|
|
|
$
|
1,371,828
|
|
|
$
|
390,247
|
|
|
$
|
366,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO
|
|
$
|
1,467,116
|
|
|
$
|
1,377,007
|
|
|
$
|
391,942
|
|
|
$
|
377,940
|
|
|
Preferred distributions
|
|
|
(3,090
|
)
|
|
|
(3,090
|
)
|
|
|
(772
|
)
|
|
|
(772
|
)
|
|
FFO available to Common Shares and Units
|
|
$
|
1,464,026
|
|
|
$
|
1,373,917
|
|
|
$
|
391,170
|
|
|
$
|
377,168
|
|
|
FFO per share and Unit – basic
|
|
$
|
3.75
|
|
|
$
|
3.54
|
|
|
$
|
1.00
|
|
|
$
|
0.97
|
|
|
FFO per share and Unit – diluted
|
|
$
|
3.75
|
|
|
$
|
3.53
|
|
|
$
|
1.00
|
|
|
$
|
0.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized FFO
|
|
$
|
1,480,171
|
|
|
$
|
1,374,918
|
|
|
$
|
391,019
|
|
|
$
|
367,581
|
|
|
Preferred distributions
|
|
|
(3,090
|
)
|
|
|
(3,090
|
)
|
|
|
(772
|
)
|
|
|
(772
|
)
|
|
Normalized FFO available to Common Shares and Units
|
|
$
|
1,477,081
|
|
|
$
|
1,371,828
|
|
|
$
|
390,247
|
|
|
$
|
366,809
|
|
|
Normalized FFO per share and Unit – basic
|
|
$
|
3.79
|
|
|
$
|
3.54
|
|
|
$
|
1.00
|
|
|
$
|
0.94
|
|
|
Normalized FFO per share and Unit – diluted
|
|
$
|
3.78
|
|
|
$
|
3.52
|
|
|
$
|
1.00
|
|
|
$
|
0.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average Common Shares and Units outstanding – basic
|
|
|
389,954
|
|
|
|
388,045
|
|
|
|
389,844
|
|
|
|
389,357
|
|
|
Weighted average Common Shares and Units outstanding – diluted
|
|
|
390,897
|
|
|
|
389,450
|
|
|
|
390,787
|
|
|
|
390,245
|
|
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,
|
|
|
|
|
2023
|
|
|
2022
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Land
|
|
$
|
5,581,876
|
|
|
$
|
5,580,878
|
|
|
Depreciable property
|
|
|
22,938,426
|
|
|
|
22,334,369
|
|
|
Projects under development
|
|
|
78,036
|
|
|
|
112,940
|
|
|
Land held for development
|
|
|
114,300
|
|
|
|
60,567
|
|
|
Investment in real estate
|
|
|
28,712,638
|
|
|
|
28,088,754
|
|
|
Accumulated depreciation
|
|
|
(9,810,337
|
)
|
|
|
(9,027,850
|
)
|
|
Investment in real estate, net
|
|
|
18,902,301
|
|
|
|
19,060,904
|
|
|
Investments in unconsolidated entities1
|
|
|
282,049
|
|
|
|
279,024
|
|
|
Cash and cash equivalents
|
|
|
50,743
|
|
|
|
53,869
|
|
|
Restricted deposits
|
|
|
89,252
|
|
|
|
83,303
|
|
|
Right-of-use assets
|
|
|
457,266
|
|
|
|
462,956
|
|
|
Other assets
|
|
|
252,953
|
|
|
|
278,206
|
|
|
Total assets
|
|
$
|
20,034,564
|
|
|
$
|
20,218,262
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
Mortgage notes payable, net
|
|
$
|
1,632,902
|
|
|
$
|
1,953,438
|
|
|
Notes, net
|
|
|
5,348,417
|
|
|
|
5,342,329
|
|
|
Line of credit and commercial paper
|
|
|
409,131
|
|
|
|
129,955
|
|
|
Accounts payable and accrued expenses
|
|
|
104,430
|
|
|
|
96,028
|
|
|
Accrued interest payable
|
|
|
65,716
|
|
|
|
66,310
|
|
|
Lease liabilities
|
|
|
311,640
|
|
|
|
308,748
|
|
|
Other liabilities
|
|
|
255,543
|
|
|
|
306,941
|
|
|
Security deposits
|
|
|
69,178
|
|
|
|
68,940
|
|
|
Distributions payable
|
|
|
259,231
|
|
|
|
244,621
|
|
|
Total liabilities
|
|
|
8,456,188
|
|
|
|
8,517,310
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable Noncontrolling Interests – Operating Partnership
|
|
|
289,248
|
|
|
|
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 December 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; 379,291,417 shares issued
|
|
|
|
|
|
|
|
|
|
and outstanding as of December 31, 2023 and 378,429,708
|
|
|
|
|
|
|
|
|
|
shares issued and outstanding as of December 31, 2022
|
|
|
3,793
|
|
|
|
3,784
|
|
|
Paid in capital
|
|
|
9,601,866
|
|
|
|
9,476,085
|
|
|
Retained earnings
|
|
|
1,437,185
|
|
|
|
1,658,837
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
5,704
|
|
|
|
(2,547
|
)
|
|
Total shareholders’ equity
|
|
|
11,085,828
|
|
|
|
11,173,439
|
|
|
Noncontrolling Interests:
|
|
|
|
|
|
|
|
Operating Partnership
|
|
|
202,306
|
|
|
|
209,961
|
|
|
Partially Owned Properties
|
|
|
994
|
|
|
|
(721
|
)
|
|
Total Noncontrolling Interests
|
|
|
203,300
|
|
|
|
209,240
|
|
|
Total equity
|
|
|
11,289,128
|
|
|
|
11,382,679
|
|
|
Total liabilities and equity
|
|
$
|
20,034,564
|
|
|
$
|
20,218,262
|
|
|
1 Includes $220.2 million and $218.0 million in unconsolidated development projects as of December 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 December 31, 2023
|
|
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
|
|
|
|
|
|
Stabilized
|
|
|
Average
|
|
|
|
|
|
|
|
Apartment
|
|
|
Budgeted
|
|
|
Rental
|
|
|
Markets/Metro Areas
|
|
Properties
|
|
|
Units
|
|
|
NOI
|
|
|
Rate
|
|
|
Established Markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles
|
|
|
58
|
|
|
|
14,732
|
|
|
|
17.1
|
%
|
|
$
|
2,929
|
|
|
Orange County
|
|
|
13
|
|
|
|
4,028
|
|
|
|
5.4
|
%
|
|
|
2,873
|
|
|
San Diego
|
|
|
12
|
|
|
|
2,878
|
|
|
|
4.0
|
%
|
|
|
3,108
|
|
|
Subtotal – Southern California
|
|
|
83
|
|
|
|
21,638
|
|
|
|
26.5
|
%
|
|
|
2,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Washington, D.C.
|
|
|
48
|
|
|
|
15,028
|
|
|
|
16.3
|
%
|
|
|
3,303
|
|
|
San Francisco
|
|
|
43
|
|
|
|
11,667
|
|
|
|
15.4
|
%
|
|
|
2,657
|
|
|
New York
|
|
|
34
|
|
|
|
8,536
|
|
|
|
14.1
|
%
|
|
|
4,566
|
|
|
Boston
|
|
|
27
|
|
|
|
7,170
|
|
|
|
11.8
|
%
|
|
|
3,574
|
|
|
Seattle
|
|
|
44
|
|
|
|
9,267
|
|
|
|
10.4
|
%
|
|
|
2,561
|
|
|
Subtotal – Established Markets
|
|
|
279
|
|
|
|
73,306
|
|
|
|
94.5
|
%
|
|
|
3,145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expansion Markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denver
|
|
|
9
|
|
|
|
2,792
|
|
|
|
2.8
|
%
|
|
|
2,411
|
|
|
Atlanta
|
|
|
7
|
|
|
|
2,111
|
|
|
|
1.6
|
%
|
|
|
2,169
|
|
|
Dallas/Ft. Worth
|
|
|
4
|
|
|
|
1,241
|
|
|
|
0.7
|
%
|
|
|
1,935
|
|
|
Austin
|
|
|
3
|
|
|
|
741
|
|
|
|
0.4
|
%
|
|
|
1,819
|
|
|
Subtotal – Expansion Markets
|
|
|
23
|
|
|
|
6,885
|
|
|
|
5.5
|
%
|
|
|
2,188
|
|
|
Total
|
|
|
302
|
|
|
|
80,191
|
|
|
|
100.0
|
%
|
|
$
|
3,063
|
|
|
|
|
|
|
|
|
|
Properties
|
|
Apartment Units
|
|
Wholly Owned Properties
|
|
288
|
|
77,131
|
|
Partially Owned Properties – Consolidated
|
|
14
|
|
3,060
|
|
|
|
302
|
|
80,191
|
|
|
|
|
|
|
Note: Projects under development are not included in the Portfolio Summary until construction has been completed.
|
|
Portfolio Rollforward Q4 2023
|
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apartment
|
|
|
|
|
|
Disposition
|
|
|
|
Properties
|
|
|
Units
|
|
|
Sales Price
|
|
|
Yield
|
|
|
9/30/2023
|
|
|
305
|
|
|
|
80,683
|
|
|
|
|
|
|
|
|
Dispositions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Rental Properties
|
|
|
(3
|
)
|
|
|
(499
|
)
|
|
$
|
(184,493
|
)
|
|
|
(5.8
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Configuration Changes
|
|
|
—
|
|
|
|
7
|
|
|
|
|
|
|
|
|
12/31/2023
|
|
|
302
|
|
|
|
80,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Rollforward 2023
|
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apartment
|
|
|
Purchase
|
|
|
Acquisition
|
|
|
|
|
Properties
|
|
|
Units
|
|
|
Price
|
|
|
Cap Rate
|
|
|
12/31/2022
|
|
|
308
|
|
|
|
79,597
|
|
|
|
|
|
|
|
|
Acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Rental Properties
|
|
|
2
|
|
|
|
577
|
|
|
$
|
189,734
|
|
|
|
5.1
|
%
|
|
Consolidated Rental Properties – Not Stabilized (1)
|
|
|
2
|
|
|
|
606
|
|
|
$
|
176,600
|
|
|
|
5.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disposition
|
|
|
|
|
|
|
|
|
|
|
Sales Price
|
|
|
Yield
|
|
|
Dispositions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Rental Properties
|
|
|
(11
|
)
|
|
|
(912
|
)
|
|
$
|
(379,893
|
)
|
|
|
(5.5
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completed Developments – Consolidated
|
|
|
1
|
|
|
|
312
|
|
|
|
|
|
|
|
|
Configuration Changes
|
|
|
—
|
|
|
|
11
|
|
|
|
|
|
|
|
|
12/31/2023
|
|
|
302
|
|
|
|
80,191
|
|
|
|
|
|
|
|
|
(1)
|
|
The Company acquired two properties in the Atlanta market during the year ended December 31, 2023 that are in lease-up and are expected to stabilize in their second year of ownership at the weighted average Acquisition Cap Rate listed above.
|
|
Fourth Quarter 2023 vs. Fourth Quarter 2022
|
|
Same Store Results/Statistics Including 77,676 Same Store Apartment Units
|
|
($ in thousands except for Average Rental Rate)
|
|
|
|
|
|
Fourth Quarter 2023
|
|
Fourth Quarter 2022
|
|
|
|
|
Residential
|
|
|
%
Change
|
|
Non-
Residential
|
|
|
%
Change
|
|
Total
|
|
|
%
Change
|
|
|
|
Residential
|
|
|
Non-
Residential
|
|
|
Total
|
|
|
Revenues
|
|
$
|
685,836
|
|
(1)
|
4.0%
|
|
$
|
25,920
|
|
|
(0.6%)
|
|
$
|
711,756
|
|
|
3.9%
|
|
Revenues
|
|
$
|
659,233
|
|
|
$
|
26,084
|
|
|
$
|
685,317
|
|
|
Expenses
|
|
$
|
209,164
|
|
|
1.1%
|
|
$
|
7,245
|
|
|
7.7%
|
|
$
|
216,409
|
|
|
1.3%
|
|
Expenses
|
|
$
|
206,885
|
|
|
$
|
6,728
|
|
|
$
|
213,613
|
|
|
NOI
|
|
$
|
476,672
|
|
|
5.4%
|
|
$
|
18,675
|
|
|
(3.5%)
|
|
$
|
495,347
|
|
|
5.0%
|
|
NOI
|
|
$
|
452,348
|
|
|
$
|
19,356
|
|
|
$
|
471,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate
|
|
$
|
3,073
|
|
|
4.0%
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate
|
$
|
2,954
|
|
|
|
|
|
|
|
|
Physical Occupancy
|
|
95.8
|
%
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
Physical Occupancy
|
|
95.8
|
%
|
|
|
|
|
|
|
|
Turnover
|
|
9.4
|
%
|
|
(0.1%)
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
|
9.5
|
%
|
|
|
|
|
|
|
|
Fourth Quarter 2023 vs. Third Quarter 2023
|
|
Same Store Results/Statistics Including 78,163 Same Store Apartment Units
|
|
($ in thousands except for Average Rental Rate)
|
|
|
|
|
|
Fourth Quarter 2023
|
|
Third Quarter 2023
|
|
|
|
|
Residential
|
|
|
%
Change
|
|
Non-
Residential
|
|
|
%
Change
|
|
Total
|
|
|
%
Change
|
|
|
|
Residential
|
|
|
Non-
Residential
|
|
|
Total
|
|
|
Revenues
|
|
$
|
689,458
|
|
(1)
|
0.3%
|
|
$
|
25,920
|
|
|
8.1%
|
|
$
|
715,378
|
|
|
0.6%
|
|
Revenues
|
|
$
|
687,259
|
|
|
$
|
23,971
|
|
(2)
|
$
|
711,230
|
|
|
Expenses
|
|
$
|
210,167
|
|
|
(3.9%)
|
|
$
|
7,268
|
|
|
5.2%
|
|
$
|
217,435
|
|
|
(3.6%)
|
|
Expenses
|
|
$
|
218,723
|
|
|
$
|
6,906
|
|
|
$
|
225,629
|
|
|
NOI
|
|
$
|
479,291
|
|
|
2.3%
|
|
$
|
18,652
|
|
|
9.3%
|
|
$
|
497,943
|
|
|
2.5%
|
|
NOI
|
|
$
|
468,536
|
|
|
$
|
17,065
|
|
|
$
|
485,601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate
|
|
$
|
3,071
|
|
|
0.5%
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate
|
$
|
3,056
|
|
|
|
|
|
|
|
|
Physical Occupancy
|
|
95.8
|
%
|
|
(0.2%)
|
|
|
|
|
|
|
|
|
|
|
|
Physical Occupancy
|
|
96.0
|
%
|
|
|
|
|
|
|
|
Turnover
|
|
9.4
|
%
|
|
(4.4%)
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
|
13.8
|
%
|
|
|
|
|
|
|
|
2023 vs. 2022
|
|
|
Same Store Results/Statistics Including 76,297 Same Store Apartment Units
|
|
|
($ in thousands except for Average Rental Rate)
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
Residential
|
|
|
%
Change
|
|
Non-
Residential
|
|
|
%
Change
|
|
Total
|
|
|
%
Change
|
|
|
|
Residential
|
|
|
Non-
Residential
|
|
|
Total
|
|
|
Revenues
|
|
$
|
2,657,868
|
|
(1)
|
5.7%
|
|
$
|
96,843
|
|
(2)
|
1.9%
|
|
$
|
2,754,711
|
|
|
5.6%
|
|
Revenues
|
|
$
|
2,514,711
|
|
|
$
|
95,055
|
|
|
$
|
2,609,766
|
|
|
Expenses
|
|
$
|
846,546
|
|
|
4.1%
|
|
$
|
26,902
|
|
|
8.9%
|
|
$
|
873,448
|
|
|
4.3%
|
|
Expenses
|
|
$
|
812,894
|
|
|
$
|
24,708
|
|
|
$
|
837,602
|
|
|
NOI
|
|
$
|
1,811,322
|
|
|
6.4%
|
|
$
|
69,941
|
|
|
(0.6%)
|
|
$
|
1,881,263
|
|
|
6.2%
|
|
NOI
|
|
$
|
1,701,817
|
|
|
$
|
70,347
|
|
|
$
|
1,772,164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate
|
|
$
|
3,029
|
|
|
6.2%
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate
|
$
|
2,853
|
|
|
|
|
|
|
|
|
Physical Occupancy
|
|
95.9
|
%
|
|
(0.4%)
|
|
|
|
|
|
|
|
|
|
|
|
Physical Occupancy
|
|
96.3
|
%
|
|
|
|
|
|
|
|
Turnover
|
|
43.7
|
%
|
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
|
43.6
|
%
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
(2)
|
|
Includes the negative impact from the non-cash write-off of approximately $1.5 million in straight-line receivables during the third quarter of 2023 due to the bankruptcy of Rite Aid.
|
|
Same Store Residential Revenues – GAAP to Cash Basis (1)
|
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter 2023 vs. Fourth Quarter 2022
|
|
|
Fourth Quarter 2023 vs. Third Quarter 2023
|
|
|
2023 vs. 2022
|
|
|
|
|
77,676 Same Store Apartment Units
|
|
|
78,163 Same Store Apartment Units
|
|
|
76,297 Same Store Apartment Units
|
|
|
|
|
Q4 2023
|
|
|
Q4 2022
|
|
|
Q4 2023
|
|
|
Q3 2023
|
|
|
2023
|
|
|
2022
|
|
|
Same Store Residential Revenues (GAAP Basis)
|
|
$
|
685,836
|
|
|
$
|
659,233
|
|
|
$
|
689,458
|
|
|
$
|
687,259
|
|
|
$
|
2,657,868
|
|
|
$
|
2,514,711
|
|
|
Leasing Concessions amortized
|
|
|
4,531
|
|
|
|
2,153
|
|
|
|
4,822
|
|
|
|
4,100
|
|
|
|
12,803
|
|
|
|
8,711
|
|
|
Leasing Concessions granted (2)
|
|
|
(5,074
|
)
|
|
|
(2,915
|
)
|
|
|
(5,399
|
)
|
|
|
(5,427
|
)
|
|
|
(17,750
|
)
|
|
|
(6,285
|
)
|
|
Same Store Residential Revenues with Leasing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concessions on a cash basis
|
|
$
|
685,293
|
|
|
$
|
658,471
|
|
|
$
|
688,881
|
|
|
$
|
685,932
|
|
|
$
|
2,652,921
|
|
|
$
|
2,517,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% change - GAAP revenue
|
|
|
4.0
|
%
|
|
|
|
|
|
0.3
|
%
|
|
|
|
|
|
5.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% change - cash revenue
|
|
|
4.1
|
%
|
|
|
|
|
|
0.4
|
%
|
|
|
|
|
|
5.4
|
%
|
|
|
|
|
(1)
|
|
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.
|
|
|
|
|
(2)
|
|
Concession usage is primarily concentrated in San Francisco and Seattle.
|
|
Same Store Net Operating Income By Quarter
|
|
Including 76,297 Same Store Apartment Units
|
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2023
|
|
Q3 2023
|
|
Q2 2023
|
|
Q1 2023
|
|
Q4 2022
|
|
Same store revenues
|
|
$
|
696,250
|
|
|
$
|
693,230
|
|
|
$
|
688,481
|
|
|
$
|
676,750
|
|
|
$
|
671,116
|
|
|
Same store expenses
|
|
|
212,250
|
|
|
|
219,850
|
|
|
|
215,983
|
|
|
|
225,365
|
|
|
|
209,407
|
|
|
Same store NOI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(includes Residential and Non-Residential)
|
|
$
|
484,000
|
|
|
$
|
473,380
|
|
|
$
|
472,498
|
|
|
$
|
451,385
|
|
|
$
|
461,709
|
|
|
Same Store Resident/Tenant Accounts Receivable Balances
|
|
Including 76,297 Same Store Apartment Units
|
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
|
Non-Residential
|
|
|
|
Balance Sheet (Other assets):
|
|
December 31, 2023
|
|
|
September 30, 2023
|
|
|
December 31, 2023
|
|
|
September 30, 2023
|
|
|
|
Resident/tenant accounts receivable balances
|
|
$
|
20,910
|
|
|
$
|
24,674
|
|
|
$
|
2,822
|
|
|
$
|
2,714
|
|
|
|
Allowance for doubtful accounts
|
|
|
(15,419
|
)
|
|
|
(19,462
|
)
|
|
|
(1,849
|
)
|
|
|
(1,703
|
)
|
|
|
Net receivable balances
|
|
$
|
5,491
|
|
|
$
|
5,212
|
|
|
$
|
973
|
|
|
$
|
1,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-line receivable balances
|
|
$
|
7,944
|
|
(1)
|
$
|
7,423
|
|
|
$
|
11,810
|
|
|
$
|
11,800
|
|
(2)
|
|
(1)
|
|
Total same store Residential Leasing Concessions granted in the fourth quarter of 2023 were approximately $5.0 million. The straight-line receivable balance of $7.9 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in 2024.
|
|
|
|
|
(2)
|
|
During the third quarter of 2023, the Company recorded a non-cash write-off of approximately $1.5 million in straight-line receivables due to the bankruptcy of Rite Aid.
|
|
Same Store Residential Bad Debt
|
|
Including 76,297 Same Store Apartment Units
|
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement (Rental income):
|
|
Q4 2023
|
|
Q3 2023
|
|
Q4 2022
|
|
2023
|
|
2022
|
|
Bad debts before governmental rental assistance
|
|
$
|
9,341
|
|
|
$
|
8,940
|
|
|
$
|
13,574
|
|
|
$
|
39,591
|
|
|
$
|
58,785
|
|
|
Governmental rental assistance received
|
|
(368
|
)
|
|
|
(406
|
)
|
|
|
(2,275
|
)
|
|
|
(2,587
|
)
|
|
|
(32,699
|
)
|
|
Bad Debt, Net
|
|
$
|
8,973
|
|
|
$
|
8,534
|
|
|
$
|
11,299
|
|
|
$
|
37,004
|
|
|
$
|
26,086
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bad Debt, Net as a % of Same Store Residential Revenues
|
|
1.3
|
%
|
|
|
1.3
|
%
|
|
|
1.7
|
%
|
|
|
1.4
|
%
|
|
|
1.0
|
%
|
|
Equity Residential
Fourth Quarter 2023 vs. Fourth Quarter 2022
Same Store Residential Results/Statistics by Market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Year's Quarter
|
|
Markets/Metro Areas
|
|
Apartment
Units
|
|
Q4 2023
% of
Actual
NOI
|
|
Q4 2023
Average
Rental
Rate
|
|
Q4 2023
Weighted
Average
Physical
Occupancy %
|
|
Q4 2023
Turnover
|
|
Revenues
|
|
Expenses
|
|
NOI
|
|
|
Average
Rental
Rate
|
|
Physical
Occupancy
|
|
Turnover
|
|
Los Angeles
|
|
|
14,135
|
|
|
|
17.3
|
%
|
|
$
|
2,909
|
|
|
|
95.1
|
%
|
|
|
10.9
|
%
|
|
|
5.2
|
%
|
|
|
6.9
|
%
|
|
|
4.5
|
%
|
|
|
6.0
|
%
|
|
|
(0.7
|
%)
|
|
|
0.8
|
%
|
|
Orange County
|
|
|
4,028
|
|
|
|
5.5
|
%
|
|
|
2,873
|
|
|
|
96.3
|
%
|
|
|
8.7
|
%
|
|
|
6.5
|
%
|
|
|
4.5
|
%
|
|
|
7.0
|
%
|
|
|
7.0
|
%
|
|
|
(0.4
|
%)
|
|
|
0.0
|
%
|
|
San Diego
|
|
|
2,878
|
|
|
|
4.2
|
%
|
|
|
3,108
|
|
|
|
95.3
|
%
|
|
|
11.3
|
%
|
|
|
6.6
|
%
|
|
|
2.8
|
%
|
|
|
7.8
|
%
|
|
|
7.4
|
%
|
|
|
(0.7
|
%)
|
|
|
2.5
|
%
|
|
Subtotal – Southern California
|
|
|
21,041
|
|
|
|
27.0
|
%
|
|
|
2,929
|
|
|
|
95.3
|
%
|
|
|
10.6
|
%
|
|
|
5.6
|
%
|
|
|
6.1
|
%
|
|
|
5.5
|
%
|
|
|
6.4
|
%
|
|
|
(0.7
|
%)
|
|
|
0.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Washington, D.C.
|
|
|
14,716
|
|
|
|
16.6
|
%
|
|
|
2,654
|
|
|
|
97.0
|
%
|
|
|
8.2
|
%
|
|
|
5.3
|
%
|
|
|
(0.2
|
%)
|
|
|
7.9
|
%
|
|
|
4.9
|
%
|
|
|
0.5
|
%
|
|
|
(1.1
|
%)
|
|
San Francisco
|
|
|
11,245
|
|
|
|
15.8
|
%
|
|
|
3,307
|
|
|
|
95.4
|
%
|
|
|
10.6
|
%
|
|
|
2.1
|
%
|
|
|
1.2
|
%
|
|
|
2.4
|
%
|
|
|
2.3
|
%
|
|
|
(0.2
|
%)
|
|
|
1.1
|
%
|
|
New York
|
|
|
8,536
|
|
|
|
14.3
|
%
|
|
|
4,566
|
|
|
|
96.6
|
%
|
|
|
6.9
|
%
|
|
|
4.2
|
%
|
|
|
0.2
|
%
|
|
|
7.1
|
%
|
|
|
4.3
|
%
|
|
|
(0.1
|
%)
|
|
|
(0.7
|
%)
|
|
Boston
|
|
|
7,170
|
|
|
|
11.1
|
%
|
|
|
3,574
|
|
|
|
95.8
|
%
|
|
|
8.6
|
%
|
|
|
5.8
|
%
|
|
|
3.8
|
%
|
|
|
6.6
|
%
|
|
|
6.0
|
%
|
|
|
(0.1
|
%)
|
|
|
0.2
|
%
|
|
Seattle
|
|
|
9,266
|
|
|
|
10.2
|
%
|
|
|
2,561
|
|
|
|
95.3
|
%
|
|
|
8.2
|
%
|
|
|
(0.4
|
%)
|
|
|
0.5
|
%
|
|
|
(0.8
|
%)
|
|
|
(0.8
|
%)
|
|
|
0.4
|
%
|
|
|
(1.7
|
%)
|
|
Denver
|
|
|
2,505
|
|
|
|
2.5
|
%
|
|
|
2,417
|
|
|
|
96.0
|
%
|
|
|
11.5
|
%
|
|
|
1.8
|
%
|
|
|
4.8
|
%
|
|
|
0.6
|
%
|
|
|
2.2
|
%
|
|
|
(0.1
|
%)
|
|
|
(0.5
|
%)
|
|
Other Expansion Markets
|
|
|
3,197
|
|
|
|
2.5
|
%
|
|
|
1,996
|
|
|
|
95.0
|
%
|
|
|
13.0
|
%
|
|
|
3.6
|
%
|
|
|
(23.3
|
%)
|
|
|
27.6
|
%
|
|
|
1.0
|
%
|
|
|
2.2
|
%
|
|
|
0.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
77,676
|
|
|
|
100.0
|
%
|
|
$
|
3,073
|
|
|
|
95.8
|
%
|
|
|
9.4
|
%
|
|
|
4.0
|
%
|
|
|
1.1
|
%
|
|
|
5.4
|
%
|
|
|
4.0
|
%
|
|
|
0.0
|
%
|
|
|
(0.1
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.4% of total revenues for the year ended December 31, 2023.
|
|
Equity Residential
Fourth Quarter 2023 vs. Third Quarter 2023
Same Store Residential Results/Statistics by Market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Quarter
|
|
Markets/Metro Areas
|
|
Apartment
Units
|
|
Q4 2023
% of
Actual
NOI
|
|
Q4 2023
Average
Rental
Rate
|
|
Q4 2023
Weighted
Average
Physical
Occupancy %
|
|
Q4 2023
Turnover
|
|
Revenues
|
|
Expenses
|
|
NOI
|
|
Average
Rental
Rate
|
|
Physical
Occupancy
|
|
Turnover
|
|
Los Angeles
|
|
|
14,135
|
|
|
|
17.1
|
%
|
|
$
|
2,909
|
|
|
|
95.1
|
%
|
|
|
10.9
|
%
|
|
|
(0.3
|
%)
|
|
|
(2.6
|
%)
|
|
|
0.8
|
%
|
|
|
0.4
|
%
|
|
|
(0.6
|
%)
|
|
|
(1.4
|
%)
|
|
Orange County
|
|
|
4,028
|
|
|
|
5.5
|
%
|
|
|
2,873
|
|
|
|
96.3
|
%
|
|
|
8.7
|
%
|
|
|
1.2
|
%
|
|
|
(4.2
|
%)
|
|
|
2.7
|
%
|
|
|
1.7
|
%
|
|
|
(0.4
|
%)
|
|
|
(2.2
|
%)
|
|
San Diego
|
|
|
2,878
|
|
|
|
4.2
|
%
|
|
|
3,108
|
|
|
|
95.3
|
%
|
|
|
11.3
|
%
|
|
|
1.4
|
%
|
|
|
(3.3
|
%)
|
|
|
2.9
|
%
|
|
|
1.5
|
%
|
|
|
0.0
|
%
|
|
|
(1.2
|
%)
|
|
Subtotal – Southern California
|
|
|
21,041
|
|
|
|
26.8
|
%
|
|
|
2,929
|
|
|
|
95.3
|
%
|
|
|
10.6
|
%
|
|
|
0.3
|
%
|
|
|
(2.9
|
%)
|
|
|
1.5
|
%
|
|
|
0.8
|
%
|
|
|
(0.6
|
%)
|
|
|
(1.4
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Washington, D.C.
|
|
|
14,716
|
|
|
|
16.5
|
%
|
|
|
2,654
|
|
|
|
97.0
|
%
|
|
|
8.2
|
%
|
|
|
0.6
|
%
|
|
|
(4.4
|
%)
|
|
|
2.9
|
%
|
|
|
0.4
|
%
|
|
|
0.2
|
%
|
|
|
(6.2
|
%)
|
|
San Francisco
|
|
|
11,445
|
|
|
|
15.9
|
%
|
|
|
3,302
|
|
|
|
95.3
|
%
|
|
|
10.9
|
%
|
|
|
(0.4
|
%)
|
|
|
(2.7
|
%)
|
|
|
0.7
|
%
|
|
|
(0.2
|
%)
|
|
|
(0.2
|
%)
|
|
|
(2.2
|
%)
|
|
New York
|
|
|
8,536
|
|
|
|
14.2
|
%
|
|
|
4,566
|
|
|
|
96.6
|
%
|
|
|
6.9
|
%
|
|
|
0.8
|
%
|
|
|
(3.7
|
%)
|
|
|
4.0
|
%
|
|
|
0.8
|
%
|
|
|
0.1
|
%
|
|
|
(5.8
|
%)
|
|
Boston
|
|
|
7,170
|
|
|
|
11.0
|
%
|
|
|
3,574
|
|
|
|
95.8
|
%
|
|
|
8.6
|
%
|
|
|
1.1
|
%
|
|
|
1.3
|
%
|
|
|
1.1
|
%
|
|
|
1.4
|
%
|
|
|
(0.3
|
%)
|
|
|
(7.4
|
%)
|
|
Seattle
|
|
|
9,266
|
|
|
|
10.2
|
%
|
|
|
2,561
|
|
|
|
95.3
|
%
|
|
|
8.2
|
%
|
|
|
(0.4
|
%)
|
|
|
(7.4
|
%)
|
|
|
2.5
|
%
|
|
|
(0.6
|
%)
|
|
|
0.1
|
%
|
|
|
(6.1
|
%)
|
|
Denver
|
|
|
2,792
|
|
|
|
2.9
|
%
|
|
|
2,411
|
|
|
|
96.0
|
%
|
|
|
11.8
|
%
|
|
|
(0.3
|
%)
|
|
|
(4.0
|
%)
|
|
|
1.2
|
%
|
|
|
0.4
|
%
|
|
|
(0.5
|
%)
|
|
|
(6.4
|
%)
|
|
Other Expansion Markets
|
|
|
3,197
|
|
|
|
2.5
|
%
|
|
|
1,996
|
|
|
|
95.0
|
%
|
|
|
13.0
|
%
|
|
|
0.5
|
%
|
|
|
(18.8
|
%)
|
|
|
15.2
|
%
|
|
|
0.1
|
%
|
|
|
0.4
|
%
|
|
|
(5.0
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
78,163
|
|
|
|
100.0
|
%
|
|
$
|
3,071
|
|
|
|
95.8
|
%
|
|
|
9.4
|
%
|
|
|
0.3
|
%
|
|
|
(3.9
|
%)
|
|
|
2.3
|
%
|
|
|
0.5
|
%
|
|
|
(0.2
|
%)
|
|
|
(4.4
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.4% of total revenues for the year ended December 31, 2023.
|
|
Equity Residential
2023 vs. 2022
Same Store Residential Results/Statistics by Market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Year
|
|
Markets/Metro Areas
|
|
Apartment
Units
|
|
2023
% of
Actual
NOI
|
|
2023
Average
Rental
Rate
|
|
2023
Weighted
Average
Physical
Occupancy %
|
|
2023
Turnover
|
|
Revenues
|
|
Expenses
|
|
NOI
|
|
Average
Rental
Rate
|
|
Physical
Occupancy
|
|
Turnover
|
|
Los Angeles
|
|
|
14,135
|
|
|
|
17.6
|
%
|
|
$
|
2,861
|
|
|
|
95.3
|
%
|
|
|
44.5
|
%
|
|
|
3.7
|
%
|
(1)
|
|
8.5
|
%
|
|
|
1.7
|
%
|
|
|
5.1
|
%
|
|
|
(1.3
|
%)
|
|
|
5.8
|
%
|
|
Orange County
|
|
|
4,028
|
|
|
|
5.6
|
%
|
|
|
2,801
|
|
|
|
96.3
|
%
|
|
|
37.4
|
%
|
|
|
6.3
|
%
|
|
|
8.3
|
%
|
|
|
5.7
|
%
|
|
|
7.1
|
%
|
|
|
(0.7
|
%)
|
|
|
2.9
|
%
|
|
San Diego
|
|
|
2,706
|
|
|
|
4.0
|
%
|
|
|
2,993
|
|
|
|
95.4
|
%
|
|
|
42.3
|
%
|
|
|
6.9
|
%
|
|
|
5.6
|
%
|
|
|
7.2
|
%
|
|
|
8.2
|
%
|
|
|
(1.3
|
%)
|
|
|
4.2
|
%
|
|
Subtotal – Southern California
|
|
|
20,869
|
|
|
|
27.2
|
%
|
|
|
2,867
|
|
|
|
95.5
|
%
|
|
|
42.9
|
%
|
|
|
4.6
|
%
|
|
|
8.1
|
%
|
|
|
3.3
|
%
|
|
|
5.9
|
%
|
|
|
(1.2
|
%)
|
|
|
5.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco
|
|
|
11,245
|
|
|
|
16.4
|
%
|
|
|
3,290
|
|
|
|
95.6
|
%
|
|
|
44.1
|
%
|
|
|
3.6
|
%
|
|
|
4.2
|
%
|
|
|
3.3
|
%
|
|
|
4.2
|
%
|
|
|
(0.6
|
%)
|
|
|
2.4
|
%
|
|
Washington, D.C.
|
|
|
14,400
|
|
|
|
16.3
|
%
|
|
|
2,597
|
|
|
|
96.8
|
%
|
|
|
40.5
|
%
|
|
|
6.0
|
%
|
|
|
1.4
|
%
|
|
|
8.3
|
%
|
|
|
5.9
|
%
|
|
|
0.0
|
%
|
|
|
(2.6
|
%)
|
|
New York
|
|
|
8,536
|
|
|
|
14.4
|
%
|
|
|
4,504
|
|
|
|
96.8
|
%
|
|
|
37.2
|
%
|
|
|
10.5
|
%
|
|
|
2.8
|
%
|
|
|
16.7
|
%
|
|
|
10.7
|
%
|
|
|
(0.1
|
%)
|
|
|
(5.2
|
%)
|
|
Seattle
|
|
|
9,266
|
|
|
|
10.8
|
%
|
|
|
2,579
|
|
|
|
95.2
|
%
|
|
|
48.0
|
%
|
|
|
3.0
|
%
|
|
|
3.3
|
%
|
|
|
2.9
|
%
|
|
|
2.9
|
%
|
|
|
0.1
|
%
|
|
|
(3.6
|
%)
|
|
Boston
|
|
|
6,700
|
|
|
|
10.3
|
%
|
|
|
3,422
|
|
|
|
96.0
|
%
|
|
|
43.9
|
%
|
|
|
7.1
|
%
|
|
|
3.5
|
%
|
|
|
8.7
|
%
|
|
|
7.4
|
%
|
|
|
(0.1
|
%)
|
|
|
(1.5
|
%)
|
|
Denver
|
|
|
2,505
|
|
|
|
2.7
|
%
|
|
|
2,404
|
|
|
|
96.3
|
%
|
|
|
58.1
|
%
|
|
|
4.6
|
%
|
|
|
8.2
|
%
|
|
|
3.2
|
%
|
|
|
4.6
|
%
|
|
|
0.0
|
%
|
|
|
(2.2
|
%)
|
|
Other Expansion Markets
|
|
|
2,776
|
|
|
|
1.9
|
%
|
|
|
1,987
|
|
|
|
94.7
|
%
|
|
|
57.1
|
%
|
|
|
4.7
|
%
|
|
|
1.4
|
%
|
|
|
7.4
|
%
|
|
|
5.1
|
%
|
|
|
(0.6
|
%)
|
|
|
1.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
76,297
|
|
|
|
100.0
|
%
|
|
$
|
3,029
|
|
|
|
95.9
|
%
|
|
|
43.7
|
%
|
|
|
5.7
|
%
|
|
|
4.1
|
%
|
|
|
6.4
|
%
|
|
|
6.2
|
%
|
|
|
(0.4
|
%)
|
|
|
0.1
|
%
|
|
(1)
|
|
Excluding Bad Debt, Net, which includes the positive impact of governmental rental assistance in the year ended December 31, 2022, same store revenue growth would have been 5.3%.
|
| |
|
|
| Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.4% of total revenues for the year ended December 31, 2023. |
|
Same Store Residential Net Effective Lease Pricing Statistics
|
|
For 76,297 Same Store Apartment Units
|
|
|
|
|
|
|
|
|
|
|
New Lease Change (1)
|
|
Renewal Rate Achieved (1)
|
|
Blended Rate (1)
|
|
Markets/Metro Areas
|
|
Q4 2023
|
|
Q3 2023
|
|
Q4 2023
|
|
Q3 2023
|
|
Q4 2023
|
|
Q3 2023
|
|
|