Maryland (Equity Residential) | 13-3675988 (Equity Residential) |
Illinois (ERP Operating Limited Partnership) | 36-3894853 (ERP Operating Limited Partnership) |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Two North Riverside Plaza, Chicago, Illinois 60606 | (312) 474-1300 |
(Address of Principal Executive Offices) (Zip Code) | (Registrant's Telephone Number, Including Area Code) |
Equity Residential Yes x No ¨ | ERP Operating Limited Partnership Yes x No o |
Equity Residential Yes x No ¨ | ERP Operating Limited Partnership Yes x No o |
Equity Residential: | |
Large accelerated filer x | Accelerated filer ¨ |
Non-accelerated filer ¨ (Do not check if a smaller reporting company) | Smaller reporting company ¨ |
ERP Operating Limited Partnership: | |
Large accelerated filer ¨ | Accelerated filer ¨ |
Non-accelerated filer x (Do not check if a smaller reporting company) | Smaller reporting company ¨ |
Equity Residential Yes ¨ No x | ERP Operating Limited Partnership Yes ¨ No x |
• | enhances investors' understanding of the Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business; |
• | eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure applies to both the Company and the Operating Partnership; and |
• | creates time and cost efficiencies through the preparation of one combined report instead of two separate reports. |
PAGE | |
PART I. | |
Item 1. Financial Statements of Equity Residential: | |
Consolidated Balance Sheets as of March 31, 2012 and December 31, 2011 | 2 |
Consolidated Statements of Operations for the quarters ended March 31, 2012 and 2011 | 3 to 4 |
Consolidated Statements of Cash Flows for the quarters ended March 31, 2012 and 2011 | 5 to 7 |
Consolidated Statement of Changes in Equity for the quarter ended March 31, 2012 | 8 to 9 |
Financial Statements of ERP Operating Limited Partnership: | |
Consolidated Balance Sheets as of March 31, 2012 and December 31, 2011 | 10 |
Consolidated Statements of Operations for the quarters ended March 31, 2012 and 2011 | 11 to 12 |
Consolidated Statements of Cash Flows for the quarters ended March 31, 2012 and 2011 | 13 to 15 |
Consolidated Statement of Changes in Capital for the quarter ended March 31, 2012 | 16 to 17 |
Notes to Consolidated Financial Statements of Equity Residential and ERP Operating Limited Partnership | 18 to 37 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 38 to 56 |
Item 3. Quantitative and Qualitative Disclosures about Market Risk | 56 |
Item 4. Controls and Procedures | 56 |
PART II. | |
Item 1. Legal Proceedings | 57 |
Item 1A. Risk Factors | 57 |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 57 |
Item 3. Defaults Upon Senior Securities | 57 |
Item 4. Mine Safety Disclosures | 57 |
Item 5. Other Information | 57 |
Item 6. Exhibits | 57 |
March 31, 2012 | December 31, 2011 | |||||||
ASSETS | ||||||||
Investment in real estate | ||||||||
Land | $ | 4,384,200 | $ | 4,367,816 | ||||
Depreciable property | 15,606,315 | 15,554,740 | ||||||
Projects under development | 185,621 | 160,190 | ||||||
Land held for development | 360,955 | 325,200 | ||||||
Investment in real estate | 20,537,091 | 20,407,946 | ||||||
Accumulated depreciation | (4,658,994 | ) | (4,539,583 | ) | ||||
Investment in real estate, net | 15,878,097 | 15,868,363 | ||||||
Cash and cash equivalents | 219,628 | 383,921 | ||||||
Investments in unconsolidated entities | 14,803 | 12,327 | ||||||
Deposits – restricted | 182,182 | 152,237 | ||||||
Escrow deposits – mortgage | 11,428 | 10,692 | ||||||
Deferred financing costs, net | 45,861 | 44,608 | ||||||
Other assets | 129,248 | 187,155 | ||||||
Total assets | $ | 16,481,247 | $ | 16,659,303 | ||||
LIABILITIES AND EQUITY | ||||||||
Liabilities: | ||||||||
Mortgage notes payable | $ | 4,056,976 | $ | 4,111,487 | ||||
Notes, net | 5,355,590 | 5,609,574 | ||||||
Lines of credit | — | — | ||||||
Accounts payable and accrued expenses | 77,055 | 35,206 | ||||||
Accrued interest payable | 79,489 | 88,121 | ||||||
Other liabilities | 261,448 | 291,289 | ||||||
Security deposits | 65,468 | 65,286 | ||||||
Distributions payable | 109,043 | 179,079 | ||||||
Total liabilities | 10,005,069 | 10,380,042 | ||||||
Commitments and contingencies | ||||||||
Redeemable Noncontrolling Interests – Operating Partnership | 457,224 | 416,404 | ||||||
Equity: | ||||||||
Shareholders’ equity: | ||||||||
Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized; 1,600,000 shares issued and outstanding as of March 31, 2012 and December 31, 2011 | 200,000 | 200,000 | ||||||
Common Shares of beneficial interest, $0.01 par value; 1,000,000,000 shares authorized; 300,522,169 shares issued and outstanding as of March 31, 2012 and 297,508,185 shares issued and outstanding as of December 31, 2011 | 3,005 | 2,975 | ||||||
Paid in capital | 5,152,975 | 5,047,186 | ||||||
Retained earnings | 656,001 | 615,572 | ||||||
Accumulated other comprehensive (loss) | (189,973 | ) | (196,718 | ) | ||||
Total shareholders’ equity | 5,822,008 | 5,669,015 | ||||||
Noncontrolling Interests: | ||||||||
Operating Partnership | 123,031 | 119,536 | ||||||
Partially Owned Properties | 73,915 | 74,306 | ||||||
Total Noncontrolling Interests | 196,946 | 193,842 | ||||||
Total equity | 6,018,954 | 5,862,857 | ||||||
Total liabilities and equity | $ | 16,481,247 | $ | 16,659,303 |
Quarter Ended March 31, | ||||||||
2012 | 2011 | |||||||
REVENUES | ||||||||
Rental income | $ | 525,595 | $ | 464,550 | ||||
Fee and asset management | 2,064 | 1,806 | ||||||
Total revenues | 527,659 | 466,356 | ||||||
EXPENSES | ||||||||
Property and maintenance | 112,379 | 105,047 | ||||||
Real estate taxes and insurance | 55,987 | 52,139 | ||||||
Property management | 23,409 | 22,381 | ||||||
Fee and asset management | 1,307 | 948 | ||||||
Depreciation | 174,737 | 158,455 | ||||||
General and administrative | 13,688 | 11,433 | ||||||
Total expenses | 381,507 | 350,403 | ||||||
Operating income | 146,152 | 115,953 | ||||||
Interest and other income | 172 | 1,011 | ||||||
Other expenses | (7,067 | ) | (2,160 | ) | ||||
Interest: | ||||||||
Expense incurred, net | (118,703 | ) | (120,528 | ) | ||||
Amortization of deferred financing costs | (2,974 | ) | (3,005 | ) | ||||
Income (loss) before income and other taxes and discontinued operations | 17,580 | (8,729 | ) | |||||
Income and other tax (expense) benefit | (191 | ) | (184 | ) | ||||
Income (loss) from continuing operations | 17,389 | (8,913 | ) | |||||
Discontinued operations, net | 134,778 | 141,979 | ||||||
Net income | 152,167 | 133,066 | ||||||
Net (income) loss attributable to Noncontrolling Interests: | ||||||||
Operating Partnership | (6,418 | ) | (5,775 | ) | ||||
Partially Owned Properties | (450 | ) | 40 | |||||
Net income attributable to controlling interests | 145,299 | 127,331 | ||||||
Preferred distributions | (3,466 | ) | (3,466 | ) | ||||
Net income available to Common Shares | $ | 141,833 | $ | 123,865 | ||||
Earnings per share – basic: | ||||||||
Income (loss) from continuing operations available to Common Shares | $ | 0.04 | $ | (0.04 | ) | |||
Net income available to Common Shares | $ | 0.47 | $ | 0.42 | ||||
Weighted average Common Shares outstanding | 298,805 | 292,895 | ||||||
Earnings per share – diluted: | ||||||||
Income (loss) from continuing operations available to Common Shares | $ | 0.04 | $ | (0.04 | ) | |||
Net income available to Common Shares | $ | 0.47 | $ | 0.42 | ||||
Weighted average Common Shares outstanding | 315,230 | 292,895 | ||||||
Distributions declared per Common Share outstanding | $ | 0.3375 | $ | 0.3375 |
Quarter Ended March 31, | ||||||||
2012 | 2011 | |||||||
Comprehensive income: | ||||||||
Net income | $ | 152,167 | $ | 133,066 | ||||
Other comprehensive income: | ||||||||
Other comprehensive income – derivative instruments: | ||||||||
Unrealized holding gains arising during the period | 3,218 | 6,082 | ||||||
Losses reclassified into earnings from other comprehensive income | 3,563 | 956 | ||||||
Other comprehensive (loss) income – other instruments: | ||||||||
Unrealized holding (losses) gains arising during the period | (36 | ) | 146 | |||||
Other comprehensive income | 6,745 | 7,184 | ||||||
Comprehensive income | 158,912 | 140,250 | ||||||
Comprehensive (income) attributable to Noncontrolling Interests | (6,868 | ) | (5,735 | ) | ||||
Comprehensive income attributable to controlling interests | $ | 152,044 | $ | 134,515 |
Quarter Ended March 31, | ||||||||
2012 | 2011 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 152,167 | $ | 133,066 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 175,108 | 169,363 | ||||||
Amortization of deferred financing costs | 2,974 | 3,074 | ||||||
Amortization of discounts and premiums on debt | (1,567 | ) | 373 | |||||
Amortization of deferred settlements on derivative instruments | 3,429 | 822 | ||||||
Write-off of pursuit costs | 1,034 | 1,683 | ||||||
Distributions from unconsolidated entities – return on capital | 89 | 41 | ||||||
Net (gain) on sales of discontinued operations | (132,956 | ) | (123,754 | ) | ||||
Unrealized (gain) on derivative instruments | (1 | ) | — | |||||
Compensation paid with Company Common Shares | 8,968 | 6,524 | ||||||
Changes in assets and liabilities: | ||||||||
(Increase) decrease in deposits – restricted | (2,768 | ) | 1,557 | |||||
Decrease in other assets | 12,262 | 5,771 | ||||||
Increase in accounts payable and accrued expenses | 41,616 | 44,531 | ||||||
(Decrease) in accrued interest payable | (8,632 | ) | (26,659 | ) | ||||
(Decrease) in other liabilities | (16,878 | ) | (28,836 | ) | ||||
Increase (decrease) in security deposits | 182 | (28 | ) | |||||
Net cash provided by operating activities | 235,027 | 187,528 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Investment in real estate – acquisitions | (183,112 | ) | (123,868 | ) | ||||
Investment in real estate – development/other | (35,876 | ) | (29,840 | ) | ||||
Improvements to real estate | (30,225 | ) | (29,891 | ) | ||||
Additions to non-real estate property | (2,229 | ) | (2,677 | ) | ||||
Interest capitalized for real estate and unconsolidated entities under development | (4,996 | ) | (1,700 | ) | ||||
Proceeds from disposition of real estate, net | 204,272 | 258,212 | ||||||
Investments in unconsolidated entities | (2,396 | ) | (366 | ) | ||||
(Increase) in deposits on real estate acquisitions and investments, net | (27,386 | ) | (107,878 | ) | ||||
(Increase) decrease in mortgage deposits | (736 | ) | 506 | |||||
Acquisition of Noncontrolling Interests – Partially Owned Properties | — | (504 | ) | |||||
Net cash (used for) investing activities | (82,684 | ) | (38,006 | ) |
Quarter Ended March 31, | ||||||||
2012 | 2011 | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Loan and bond acquisition costs | $ | (4,227 | ) | $ | (223 | ) | ||
Mortgage notes payable: | ||||||||
Proceeds | — | 707 | ||||||
Restricted cash | 209 | (22,297 | ) | |||||
Lump sum payoffs | (47,800 | ) | (200,733 | ) | ||||
Scheduled principal repayments | (3,970 | ) | (4,223 | ) | ||||
Notes, net: | ||||||||
Lump sum payoffs | (253,858 | ) | (93,096 | ) | ||||
Proceeds from sale of Common Shares | 152,058 | 154,508 | ||||||
Proceeds from Employee Share Purchase Plan (ESPP) | 4,210 | 2,742 | ||||||
Proceeds from exercise of options | 18,938 | 32,719 | ||||||
Payment of offering costs | (1,887 | ) | (2,352 | ) | ||||
Contributions – Noncontrolling Interests – Partially Owned Properties | 921 | — | ||||||
Contributions – Noncontrolling Interests – Operating Partnership | 5 | — | ||||||
Distributions: | ||||||||
Common Shares | (168,350 | ) | (132,655 | ) | ||||
Preferred Shares | (3,466 | ) | (3,466 | ) | ||||
Noncontrolling Interests – Operating Partnership | (7,657 | ) | (6,225 | ) | ||||
Noncontrolling Interests – Partially Owned Properties | (1,762 | ) | (264 | ) | ||||
Net cash (used for) financing activities | (316,636 | ) | (274,858 | ) | ||||
Net (decrease) in cash and cash equivalents | (164,293 | ) | (125,336 | ) | ||||
Cash and cash equivalents, beginning of period | 383,921 | 431,408 | ||||||
Cash and cash equivalents, end of period | $ | 219,628 | $ | 306,072 |
Quarter Ended March 31, | ||||||||
2012 | 2011 | |||||||
SUPPLEMENTAL INFORMATION: | ||||||||
Cash paid for interest, net of amounts capitalized | $ | 125,435 | $ | 146,514 | ||||
Net cash paid for income and other taxes | $ | 560 | $ | 341 | ||||
Real estate acquisitions/dispositions/other: | ||||||||
Mortgage loans assumed | $ | — | $ | 26,900 | ||||
Amortization of discounts and premiums on debt: | ||||||||
Mortgage notes payable | $ | (2,153 | ) | $ | (1,858 | ) | ||
Notes, net | $ | 586 | $ | 2,231 | ||||
Amortization of deferred settlements on derivative instruments: | ||||||||
Other liabilities | $ | (134 | ) | $ | (134 | ) | ||
Accumulated other comprehensive income | $ | 3,563 | $ | 956 | ||||
Unrealized (gain) on derivative instruments: | ||||||||
Other assets | $ | 1,300 | $ | 810 | ||||
Mortgage notes payable | $ | (588 | ) | $ | (144 | ) | ||
Notes, net | $ | (712 | ) | $ | (1,348 | ) | ||
Other liabilities | $ | (3,219 | ) | $ | (5,400 | ) | ||
Accumulated other comprehensive income | $ | 3,218 | $ | 6,082 | ||||
Interest capitalized for real estate and unconsolidated entities under development: | ||||||||
Investment in real estate, net | $ | (4,827 | ) | $ | (1,659 | ) | ||
Investments in unconsolidated entities | $ | (169 | ) | $ | (41 | ) | ||
Other: | ||||||||
Receivable on sale of Common Shares | $ | 28,457 | $ | — |
Quarter Ended March 31, 2012 | |||
SHAREHOLDERS’ EQUITY | |||
PREFERRED SHARES | |||
Balance, beginning of year | $ | 200,000 | |
Balance, end of period | $ | 200,000 | |
COMMON SHARES, $0.01 PAR VALUE | |||
Balance, beginning of year | $ | 2,975 | |
Issuance of Common Shares | 21 | ||
Exercise of share options | 7 | ||
Employee Share Purchase Plan (ESPP) | 1 | ||
Share-based employee compensation expense: | |||
Restricted shares | 1 | ||
Balance, end of period | $ | 3,005 | |
PAID IN CAPITAL | |||
Balance, beginning of year | $ | 5,047,186 | |
Common Share Issuance: | |||
Conversion of OP Units into Common Shares | 1,085 | ||
Issuance of Common Shares | 123,580 | ||
Exercise of share options | 18,931 | ||
Employee Share Purchase Plan (ESPP) | 4,209 | ||
Share-based employee compensation expense: | |||
Restricted shares | 2,709 | ||
Share options | 4,092 | ||
ESPP discount | 743 | ||
Offering costs | (1,887 | ) | |
Supplemental Executive Retirement Plan (SERP) | (6,292 | ) | |
Change in market value of Redeemable Noncontrolling Interests – Operating Partnership | (37,603 | ) | |
Adjustment for Noncontrolling Interests ownership in Operating Partnership | (3,778 | ) | |
Balance, end of period | $ | 5,152,975 | |
RETAINED EARNINGS | |||
Balance, beginning of year | $ | 615,572 | |
Net income attributable to controlling interests | 145,299 | ||
Common Share distributions | (101,404 | ) | |
Preferred Share distributions | (3,466 | ) | |
Balance, end of period | $ | 656,001 |
Quarter Ended March 31, 2012 | |||
SHAREHOLDERS' EQUITY (continued) | |||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) | |||
Balance, beginning of year | $ | (196,718 | ) |
Accumulated other comprehensive income – derivative instruments: | |||
Unrealized holding gains arising during the period | 3,218 | ||
Losses reclassified into earnings from other comprehensive income | 3,563 | ||
Accumulated other comprehensive (loss) – other instruments: | |||
Unrealized holding (losses) arising during the period | (36 | ) | |
Balance, end of period | $ | (189,973 | ) |
NONCONTROLLING INTERESTS | |||
OPERATING PARTNERSHIP | |||
Balance, beginning of year | $ | 119,536 | |
Issuance of LTIP Units to Noncontrolling Interests | 5 | ||
Conversion of OP Units held by Noncontrolling Interests into OP Units held by General Partner | (1,085 | ) | |
Equity compensation associated with Noncontrolling Interests | 2,163 | ||
Net income attributable to Noncontrolling Interests | 6,418 | ||
Distributions to Noncontrolling Interests | (4,567 | ) | |
Change in carrying value of Redeemable Noncontrolling Interests – Operating Partnership | (3,217 | ) | |
Adjustment for Noncontrolling Interests ownership in Operating Partnership | 3,778 | ||
Balance, end of period | $ | 123,031 | |
PARTIALLY OWNED PROPERTIES | |||
Balance, beginning of year | $ | 74,306 | |
Net income attributable to Noncontrolling Interests | 450 | ||
Contributions by Noncontrolling Interests | 921 | ||
Distributions to Noncontrolling Interests | (1,762 | ) | |
Balance, end of period | $ | 73,915 |
March 31, 2012 | December 31, 2011 | |||||||
ASSETS | ||||||||
Investment in real estate | ||||||||
Land | $ | 4,384,200 | $ | 4,367,816 | ||||
Depreciable property | 15,606,315 | 15,554,740 | ||||||
Projects under development | 185,621 | 160,190 | ||||||
Land held for development | 360,955 | 325,200 | ||||||
Investment in real estate | 20,537,091 | 20,407,946 | ||||||
Accumulated depreciation | (4,658,994 | ) | (4,539,583 | ) | ||||
Investment in real estate, net | 15,878,097 | 15,868,363 | ||||||
Cash and cash equivalents | 219,628 | 383,921 | ||||||
Investments in unconsolidated entities | 14,803 | 12,327 | ||||||
Deposits – restricted | 182,182 | 152,237 | ||||||
Escrow deposits – mortgage | 11,428 | 10,692 | ||||||
Deferred financing costs, net | 45,861 | 44,608 | ||||||
Other assets | 129,248 | 187,155 | ||||||
Total assets | $ | 16,481,247 | $ | 16,659,303 | ||||
LIABILITIES AND CAPITAL | ||||||||
Liabilities: | ||||||||
Mortgage notes payable | $ | 4,056,976 | $ | 4,111,487 | ||||
Notes, net | 5,355,590 | 5,609,574 | ||||||
Lines of credit | — | — | ||||||
Accounts payable and accrued expenses | 77,055 | 35,206 | ||||||
Accrued interest payable | 79,489 | 88,121 | ||||||
Other liabilities | 261,448 | 291,289 | ||||||
Security deposits | 65,468 | 65,286 | ||||||
Distributions payable | 109,043 | 179,079 | ||||||
Total liabilities | 10,005,069 | 10,380,042 | ||||||
Commitments and contingencies | ||||||||
Redeemable Limited Partners | 457,224 | 416,404 | ||||||
Capital: | ||||||||
Partners’ Capital: | ||||||||
Preference Units | 200,000 | 200,000 | ||||||
General Partner | 5,811,981 | 5,665,733 | ||||||
Limited Partners | 123,031 | 119,536 | ||||||
Accumulated other comprehensive (loss) | (189,973 | ) | (196,718 | ) | ||||
Total partners’ capital | 5,945,039 | 5,788,551 | ||||||
Noncontrolling Interests – Partially Owned Properties | 73,915 | 74,306 | ||||||
Total capital | 6,018,954 | 5,862,857 | ||||||
Total liabilities and capital | $ | 16,481,247 | $ | 16,659,303 |
Quarter Ended March 31, | ||||||||
2012 | 2011 | |||||||
REVENUES | ||||||||
Rental income | $ | 525,595 | $ | 464,550 | ||||
Fee and asset management | 2,064 | 1,806 | ||||||
Total revenues | 527,659 | 466,356 | ||||||
EXPENSES | ||||||||
Property and maintenance | 112,379 | 105,047 | ||||||
Real estate taxes and insurance | 55,987 | 52,139 | ||||||
Property management | 23,409 | 22,381 | ||||||
Fee and asset management | 1,307 | 948 | ||||||
Depreciation | 174,737 | 158,455 | ||||||
General and administrative | 13,688 | 11,433 | ||||||
Total expenses | 381,507 | 350,403 | ||||||
Operating income | 146,152 | 115,953 | ||||||
Interest and other income | 172 | 1,011 | ||||||
Other expenses | (7,067 | ) | (2,160 | ) | ||||
Interest: | ||||||||
Expense incurred, net | (118,703 | ) | (120,528 | ) | ||||
Amortization of deferred financing costs | (2,974 | ) | (3,005 | ) | ||||
Income (loss) before income and other taxes and discontinued operations | 17,580 | (8,729 | ) | |||||
Income and other tax (expense) benefit | (191 | ) | (184 | ) | ||||
Income (loss) from continuing operations | 17,389 | (8,913 | ) | |||||
Discontinued operations, net | 134,778 | 141,979 | ||||||
Net income | 152,167 | 133,066 | ||||||
Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties | (450 | ) | 40 | |||||
Net income attributable to controlling interests | $ | 151,717 | $ | 133,106 | ||||
ALLOCATION OF NET INCOME: | ||||||||
Preference Units | $ | 3,466 | $ | 3,466 | ||||
General Partner | $ | 141,833 | $ | 123,865 | ||||
Limited Partners | 6,418 | 5,775 | ||||||
Net income available to Units | $ | 148,251 | $ | 129,640 | ||||
Earnings per Unit – basic: | ||||||||
Income (loss) from continuing operations available to Units | $ | 0.04 | $ | (0.04 | ) | |||
Net income available to Units | $ | 0.47 | $ | 0.42 | ||||
Weighted average Units outstanding | 312,011 | 306,248 | ||||||
Earnings per Unit – diluted: | ||||||||
Income (loss) from continuing operations available to Units | $ | 0.04 | $ | (0.04 | ) | |||
Net income available to Units | $ | 0.47 | $ | 0.42 | ||||
Weighted average Units outstanding | 315,230 | 306,248 | ||||||
Distributions declared per Unit outstanding | $ | 0.3375 | $ | 0.3375 |
Quarter Ended March 31, | ||||||||
2012 | 2011 | |||||||
Comprehensive income: | ||||||||
Net income | $ | 152,167 | $ | 133,066 | ||||
Other comprehensive income: | ||||||||
Other comprehensive income – derivative instruments: | ||||||||
Unrealized holding gains arising during the period | 3,218 | 6,082 | ||||||
Losses reclassified into earnings from other comprehensive income | 3,563 | 956 | ||||||
Other comprehensive (loss) income – other instruments: | ||||||||
Unrealized holding (losses) gains arising during the period | (36 | ) | 146 | |||||
Other comprehensive income | 6,745 | 7,184 | ||||||
Comprehensive income | 158,912 | 140,250 | ||||||
Comprehensive (income) loss attributable to Noncontrolling Interests – Partially Owned Properties | (450 | ) | 40 | |||||
Comprehensive income attributable to controlling interests | $ | 158,462 | $ | 140,290 |
Quarter Ended March 31, | ||||||||
2012 | 2011 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 152,167 | $ | 133,066 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 175,108 | 169,363 | ||||||
Amortization of deferred financing costs | 2,974 | 3,074 | ||||||
Amortization of discounts and premiums on debt | (1,567 | ) | 373 | |||||
Amortization of deferred settlements on derivative instruments | 3,429 | 822 | ||||||
Write-off of pursuit costs | 1,034 | 1,683 | ||||||
Distributions from unconsolidated entities – return on capital | 89 | 41 | ||||||
Net (gain) on sales of discontinued operations | (132,956 | ) | (123,754 | ) | ||||
Unrealized (gain) on derivative instruments | (1 | ) | — | |||||
Compensation paid with Company Common Shares | 8,968 | 6,524 | ||||||
Changes in assets and liabilities: | ||||||||
(Increase) decrease in deposits – restricted | (2,768 | ) | 1,557 | |||||
Decrease in other assets | 12,262 | 5,771 | ||||||
Increase in accounts payable and accrued expenses | 41,616 | 44,531 | ||||||
(Decrease) in accrued interest payable | (8,632 | ) | (26,659 | ) | ||||
(Decrease) in other liabilities | (16,878 | ) | (28,836 | ) | ||||
Increase (decrease) in security deposits | 182 | (28 | ) | |||||
Net cash provided by operating activities | 235,027 | 187,528 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Investment in real estate – acquisitions | (183,112 | ) | (123,868 | ) | ||||
Investment in real estate – development/other | (35,876 | ) | (29,840 | ) | ||||
Improvements to real estate | (30,225 | ) | (29,891 | ) | ||||
Additions to non-real estate property | (2,229 | ) | (2,677 | ) | ||||
Interest capitalized for real estate and unconsolidated entities under development | (4,996 | ) | (1,700 | ) | ||||
Proceeds from disposition of real estate, net | 204,272 | 258,212 | ||||||
Investments in unconsolidated entities | (2,396 | ) | (366 | ) | ||||
(Increase) in deposits on real estate acquisitions and investments, net | (27,386 | ) | (107,878 | ) | ||||
(Increase) decrease in mortgage deposits | (736 | ) | 506 | |||||
Acquisition of Noncontrolling Interests – Partially Owned Properties | — | (504 | ) | |||||
Net cash (used for) investing activities | (82,684 | ) | (38,006 | ) |
Quarter Ended March 31, | ||||||||
2012 | 2011 | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Loan and bond acquisition costs | $ | (4,227 | ) | $ | (223 | ) | ||
Mortgage notes payable: | ||||||||
Proceeds | — | 707 | ||||||
Restricted cash | 209 | (22,297 | ) | |||||
Lump sum payoffs | (47,800 | ) | (200,733 | ) | ||||
Scheduled principal repayments | (3,970 | ) | (4,223 | ) | ||||
Notes, net: | ||||||||
Lump sum payoffs | (253,858 | ) | (93,096 | ) | ||||
Proceeds from sale of OP Units | 152,058 | 154,508 | ||||||
Proceeds from EQR’s Employee Share Purchase Plan (ESPP) | 4,210 | 2,742 | ||||||
Proceeds from exercise of EQR options | 18,938 | 32,719 | ||||||
Payment of offering costs | (1,887 | ) | (2,352 | ) | ||||
Contributions – Noncontrolling Interests – Partially Owned Properties | 921 | — | ||||||
Contributions – Limited Partners | 5 | — | ||||||
Distributions: | ||||||||
OP Units – General Partner | (168,350 | ) | (132,655 | ) | ||||
Preference Units | (3,466 | ) | (3,466 | ) | ||||
OP Units – Limited Partners | (7,657 | ) | (6,225 | ) | ||||
Noncontrolling Interests – Partially Owned Properties | (1,762 | ) | (264 | ) | ||||
Net cash (used for) financing activities | (316,636 | ) | (274,858 | ) | ||||
Net (decrease) in cash and cash equivalents | (164,293 | ) | (125,336 | ) | ||||
Cash and cash equivalents, beginning of period | 383,921 | 431,408 | ||||||
Cash and cash equivalents, end of period | $ | 219,628 | $ | 306,072 |
Quarter Ended March 31, | ||||||||
2012 | 2011 | |||||||
SUPPLEMENTAL INFORMATION: | ||||||||
Cash paid for interest, net of amounts capitalized | $ | 125,435 | $ | 146,514 | ||||
Net cash paid for income and other taxes | $ | 560 | $ | 341 | ||||
Real estate acquisitions/dispositions/other: | ||||||||
Mortgage loans assumed | $ | — | $ | 26,900 | ||||
Amortization of discounts and premiums on debt: | ||||||||
Mortgage notes payable | $ | (2,153 | ) | $ | (1,858 | ) | ||
Notes, net | $ | 586 | $ | 2,231 | ||||
Amortization of deferred settlements on derivative instruments: | ||||||||
Other liabilities | $ | (134 | ) | $ | (134 | ) | ||
Accumulated other comprehensive income | $ | 3,563 | $ | 956 | ||||
Unrealized (gain) on derivative instruments: | ||||||||
Other assets | $ | 1,300 | $ | 810 | ||||
Mortgage notes payable | $ | (588 | ) | $ | (144 | ) | ||
Notes, net | $ | (712 | ) | $ | (1,348 | ) | ||
Other liabilities | $ | (3,219 | ) | $ | (5,400 | ) | ||
Accumulated other comprehensive income | $ | 3,218 | $ | 6,082 | ||||
Interest capitalized for real estate and unconsolidated entities under development: | ||||||||
Investment in real estate, net | $ | (4,827 | ) | $ | (1,659 | ) | ||
Investments in unconsolidated entities | $ | (169 | ) | $ | (41 | ) | ||
Other: | ||||||||
Receivable on sale of OP Units | $ | 28,457 | $ | — |
Quarter Ended March 31, 2012 | |||
PARTNERS’ CAPITAL | |||
PREFERENCE UNITS | |||
Balance, beginning of year | $ | 200,000 | |
Balance, end of period | $ | 200,000 | |
GENERAL PARTNER | |||
Balance, beginning of year | $ | 5,665,733 | |
OP Unit Issuance: | |||
Conversion of OP Units held by Limited Partners into OP Units held by General Partner | 1,085 | ||
Issuance of OP Units | 123,601 | ||
Exercise of EQR share options | 18,938 | ||
EQR’s Employee Share Purchase Plan (ESPP) | 4,210 | ||
Share-based employee compensation expense: | |||
EQR restricted shares | 2,710 | ||
EQR share options | 4,092 | ||
EQR ESPP discount | 743 | ||
Offering costs | (1,887 | ) | |
Net income available to Units – General Partner | 141,833 | ||
OP Units – General Partner distributions | (101,404 | ) | |
Supplemental Executive Retirement Plan (SERP) | (6,292 | ) | |
Change in market value of Redeemable Limited Partners | (37,603 | ) | |
Adjustment for Limited Partners ownership in Operating Partnership | (3,778 | ) | |
Balance, end of period | $ | 5,811,981 | |
LIMITED PARTNERS | |||
Balance, beginning of year | $ | 119,536 | |
Issuance of LTIP Units to Limited Partners | 5 | ||
Conversion of OP Units held by Limited Partners into OP Units held by General Partner | (1,085 | ) | |
Equity compensation associated with Units – Limited Partners | 2,163 | ||
Net income available to Units – Limited Partners | 6,418 | ||
Units – Limited Partners distributions | (4,567 | ) | |
Change in carrying value of Redeemable Limited Partners | (3,217 | ) | |
Adjustment for Limited Partners ownership in Operating Partnership | 3,778 | ||
Balance, end of period | $ | 123,031 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) | |||
Balance, beginning of year | $ | (196,718 | ) |
Accumulated other comprehensive income – derivative instruments: | |||
Unrealized holding gains arising during the period | 3,218 | ||
Losses reclassified into earnings from other comprehensive income | 3,563 | ||
Accumulated other comprehensive (loss) – other instruments: | |||
Unrealized holding (losses) arising during the period | (36 | ) | |
Balance, end of period | $ | (189,973 | ) |
Quarter Ended March 31, 2012 | |||
NONCONTROLLING INTERESTS | |||
NONCONTROLLING INTERESTS – PARTIALLY OWNED PROPERTIES | |||
Balance, beginning of year | $ | 74,306 | |
Net income attributable to Noncontrolling Interests | 450 | ||
Contributions by Noncontrolling Interests | 921 | ||
Distributions to Noncontrolling Interests | (1,762 | ) | |
Balance, end of period | $ | 73,915 |
1. | Business |
Properties | Apartment Units | |||||
Wholly Owned Properties | 404 | 112,181 | ||||
Partially Owned Properties – Consolidated | 21 | 3,916 | ||||
Military Housing | 2 | 4,914 | ||||
427 | 121,011 |
2. | Summary of Significant Accounting Policies |
3. | Equity, Capital and Other Interests |
2012 | ||
Common Shares | ||
Common Shares outstanding at January 1, | 297,508,185 | |
Common Shares Issued: | ||
Conversion of OP Units | 31,361 | |
Issuance of Common Shares | 2,078,310 | |
Exercise of share options | 690,340 | |
Employee Share Purchase Plan (ESPP) | 85,837 | |
Restricted share grants, net | 128,136 | |
Common Shares outstanding at March 31, | 300,522,169 | |
Units | ||
Units outstanding at January 1, | 13,492,543 | |
LTIP Units, net | 70,235 | |
Conversion of OP Units to Common Shares | (31,361 | ) |
Units outstanding at March 31, | 13,531,417 | |
Total Common Shares and Units outstanding at March 31, | 314,053,586 | |
Units Ownership Interest in Operating Partnership | 4.3 | % |
2012 | |||
Balance at January 1, | $ | 416,404 | |
Change in market value | 37,603 | ||
Change in carrying value | 3,217 | ||
Balance at March 31, | $ | 457,224 |
Amounts in thousands | ||||||||||||||
Redemption Date (1) | Annual Dividend per Share (2) | March 31, 2012 | December 31, 2011 | |||||||||||
Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized: | ||||||||||||||
8.29% Series K Cumulative Redeemable Preferred; liquidation value $50 per share; 1,000,000 shares issued and outstanding at March 31, 2012 and December 31, 2011 | 12/10/26 | $4.145 | $ | 50,000 | $ | 50,000 | ||||||||
6.48% Series N Cumulative Redeemable Preferred; liquidation value $250 per share; 600,000 shares issued and outstanding at March 31, 2012 and December 31, 2011 (3) | 06/19/08 | $16.20 | 150,000 | 150,000 | ||||||||||
$ | 200,000 | $ | 200,000 |
(1) | On or after the redemption date, redeemable preferred shares (Series K and N) may be redeemed for cash at the option of the Company, in whole or in part, at a redemption price equal to the liquidation price per share, plus accrued and unpaid distributions, if any. |
(2) | Dividends on all series of Preferred Shares are payable quarterly at various pay dates. The dividend listed for Series N is a Preferred Share rate and the equivalent Depositary Share annual dividend is $1.62 per share. |
(3) | The Series N Preferred Shares have a corresponding depositary share that consists of ten times the number of shares and one-tenth the liquidation value and dividend per share. |
2012 | ||
General and Limited Partner Units | ||
General and Limited Partner Units outstanding at January 1, | 311,000,728 | |
Issued to General Partner: | ||
Issuance of OP Units | 2,078,310 | |
Exercise of EQR share options | 690,340 | |
EQR’s Employee Share Purchase Plan (ESPP) | 85,837 | |
EQR's restricted share grants, net | 128,136 | |
Issued to Limited Partners: | ||
LTIP Units, net | 70,235 | |
General and Limited Partner Units outstanding at March 31, | 314,053,586 | |
Limited Partner Units | ||
Limited Partner Units outstanding at January 1, | 13,492,543 | |
Limited Partner LTIP Units, net | 70,235 | |
Conversion of Limited Partner OP Units to EQR Common Shares | (31,361 | ) |
Limited Partner Units outstanding at March 31, | 13,531,417 | |
Limited Partner Units Ownership Interest in Operating Partnership | 4.3 | % |
2012 | |||
Balance at January 1, | $ | 416,404 | |
Change in market value | 37,603 | ||
Change in carrying value | 3,217 | ||
Balance at March 31, | $ | 457,224 |
Amounts in thousands | ||||||||||||||
Redemption Date (1) | Annual Dividend per Unit (2) | March 31, 2012 | December 31, 2011 | |||||||||||
Preference Units: | ||||||||||||||
8.29% Series K Cumulative Redeemable Preference Units; liquidation value $50 per unit; 1,000,000 units issued and outstanding at March 31, 2012 and December 31, 2011 | 12/10/26 | $4.145 | $ | 50,000 | $ | 50,000 | ||||||||
6.48% Series N Cumulative Redeemable Preference Units; liquidation value $250 per unit; 600,000 units issued and outstanding at March 31, 2012 and December 31, 2011 (3) | 06/19/08 | $16.20 | 150,000 | 150,000 | ||||||||||
$ | 200,000 | $ | 200,000 |
(1) | On or after the redemption date, redeemable preference units (Series K and N) may be redeemed for cash at the option of the Operating Partnership, in whole or in part, at a redemption price equal to the liquidation price per unit, plus accrued and unpaid distributions, if any, in conjunction with concurrent redemption of the corresponding Company Preferred Shares. |
(2) | Dividends on all series of Preference Units are payable quarterly at various pay dates. The dividend listed for Series N is a Preference Unit rate and the equivalent depositary unit annual dividend is $1.62 per unit. |
(3) | The Series N Preference Units have a corresponding depositary unit that consists of ten times the number of units and one-tenth the liquidation value and dividend per unit. |
4. | Real Estate |
March 31, 2012 | December 31, 2011 | |||||||
Land | $ | 4,384,200 | $ | 4,367,816 | ||||
Depreciable property: | ||||||||
Buildings and improvements | 14,294,619 | 14,262,616 | ||||||
Furniture, fixtures and equipment | 1,311,696 | 1,292,124 | ||||||
Projects under development: | ||||||||
Land | 76,112 | 75,646 | ||||||
Construction-in-progress | 109,509 | 84,544 | ||||||
Land held for development: | ||||||||
Land | 323,017 | 299,096 | ||||||
Construction-in-progress | 37,938 | 26,104 | ||||||
Investment in real estate | 20,537,091 | 20,407,946 | ||||||
Accumulated depreciation | (4,658,994 | ) | (4,539,583 | ) | ||||
Investment in real estate, net | $ | 15,878,097 | $ | 15,868,363 |
Properties | Apartment Units | Purchase Price | ||||||||
Rental Properties – Consolidated | 3 | 544 | $ | 159,100 | ||||||
Land Parcels (two) | — | — | 23,740 | |||||||
Total | 3 | 544 | $ | 182,840 |
Properties | Apartment Units | Sales Price | ||||||||
Rental Properties – Consolidated | 3 | 1,522 | $ | 206,350 | ||||||
Total | 3 | 1,522 | $ | 206,350 |
5. | Commitments to Acquire/Dispose of Real Estate |
Properties | Apartment Units | Purchase Price | ||||||||
Land Parcels (four) | — | — | $ | 73,500 | ||||||
Total | — | — | $ | 73,500 |
Properties | Apartment Units | Sales Price | ||||||||
Rental Properties | 3 | 699 | $ | 54,100 | ||||||
Total | 3 | 699 | $ | 54,100 |
6. | Investments in Partially Owned Entities |
Consolidated | ||||||||||||||||
Development Projects (VIEs) (4) | ||||||||||||||||
Held for and/or Under Development | Completed and Stabilized | Other | Total | |||||||||||||
Total projects (1) | — | 2 | 19 | 21 | ||||||||||||
Total apartment units (1) | — | 441 | 3,475 | 3,916 | ||||||||||||
Balance sheet information at 3/31/12 (at 100%): | ||||||||||||||||
ASSETS | ||||||||||||||||
Investment in real estate | $ | 162,547 | $ | 114,595 | $ | 450,120 | $ | 727,262 | ||||||||
Accumulated depreciation | — | (13,269 | ) | (148,177 | ) | (161,446 | ) | |||||||||
Investment in real estate, net | 162,547 | 101,326 | 301,943 | 565,816 | ||||||||||||
Cash and cash equivalents | 2,448 | 1,243 | 11,515 | 15,206 | ||||||||||||
Deposits – restricted | 43,586 | 2,295 | 5 | 45,886 | ||||||||||||
Escrow deposits – mortgage | — | 70 | — | 70 | ||||||||||||
Deferred financing costs, net | — | 37 | 1,125 | 1,162 | ||||||||||||
Other assets | 5,766 | 115 | 147 | 6,028 | ||||||||||||
Total assets | $ | 214,347 | $ | 105,086 | $ | 314,735 | $ | 634,168 | ||||||||
LIABILITIES AND EQUITY/CAPITAL | ||||||||||||||||
Mortgage notes payable | $ | — | $ | 33,175 | $ | 200,337 | $ | 233,512 | ||||||||
Accounts payable & accrued expenses | 7 | 431 | 1,925 | 2,363 | ||||||||||||
Accrued interest payable | — | 104 | 782 | 886 | ||||||||||||
Other liabilities | 1,272 | 51 | 889 | 2,212 | ||||||||||||
Security deposits | — | 111 | 1,483 | 1,594 | ||||||||||||
Total liabilities | 1,279 | 33,872 | 205,416 | 240,567 | ||||||||||||
Noncontrolling Interests – Partially Owned Properties | 79,011 | 1,079 | (6,175 | ) | 73,915 | |||||||||||
Company equity/General and Limited Partners' Capital | 134,057 | 70,135 | 115,494 | 319,686 | ||||||||||||
Total equity/capital | 213,068 | 71,214 | 109,319 | 393,601 | ||||||||||||
Total liabilities and equity/capital | $ | 214,347 | $ | 105,086 | $ | 314,735 | $ | 634,168 | ||||||||
Debt – Secured (2): | ||||||||||||||||
Company/Operating Partnership Ownership (3) | $ | — | $ | 33,175 | $ | 159,068 | $ | 192,243 | ||||||||
Noncontrolling Ownership | — | — | 41,269 | 41,269 | ||||||||||||
Total (at 100%) | $ | — | $ | 33,175 | $ | 200,337 | $ | 233,512 |
Consolidated | ||||||||||||||||
Development Projects (VIEs) (4) | ||||||||||||||||
Held for and/or Under Development | Completed and Stabilized | Other | Total | |||||||||||||
Operating information for the quarter ended 3/31/12 (at 100%): | ||||||||||||||||
Operating revenue | $ | — | $ | 2,349 | $ | 15,045 | $ | 17,394 | ||||||||
Operating expenses | (18 | ) | 375 | 4,871 | 5,228 | |||||||||||
Net operating income | 18 | 1,974 | 10,174 | 12,166 | ||||||||||||
Depreciation | — | 1,042 | 3,872 | 4,914 | ||||||||||||
General and administrative/other | 4 | 2 | 13 | 19 | ||||||||||||
Operating income | 14 | 930 | 6,289 | 7,233 | ||||||||||||
Interest and other income | 1 | 1 | — | 2 | ||||||||||||
Other expenses | (61 | ) | — | — | (61 | ) | ||||||||||
Interest: | ||||||||||||||||
Expense incurred, net | — | (337 | ) | (2,346 | ) | (2,683 | ) | |||||||||
Amortization of deferred financing costs | — | (107 | ) | (54 | ) | (161 | ) | |||||||||
(Loss) income before income and other taxes | (46 | ) | 487 | 3,889 | 4,330 | |||||||||||
Income and other tax (expense) benefit | (26 | ) | — | (21 | ) | (47 | ) | |||||||||
Net (loss) income | $ | (72 | ) | $ | 487 | $ | 3,868 | $ | 4,283 |
(1) | Project and apartment unit counts exclude all uncompleted development projects until those projects are substantially completed. |
(2) | All debt is non-recourse to the Company. |
(3) | Represents the Company’s/Operating Partnership’s current economic ownership interest. |
(4) | A development project with a noncontrolling interest balance of $76.7 million is not a VIE. |
7. | Deposits – Restricted |
March 31, 2012 | December 31, 2011 | |||||||
Tax–deferred (1031) exchange proceeds | $ | 79,145 | $ | 53,668 | ||||
Earnest money on pending acquisitions | 10,175 | 7,882 | ||||||
Restricted deposits on debt | 2,161 | 2,370 | ||||||
Restricted deposits on real estate investments | 43,586 | 43,970 | ||||||
Resident security and utility deposits | 43,029 | 40,403 | ||||||
Other | 4,086 | 3,944 | ||||||
Totals | $ | 182,182 | $ | 152,237 |
8. | Debt |
▪ | Repaid $51.8 million of mortgage loans. |
▪ | Repaid $253.9 million of 6.625% unsecured notes at maturity; and |
▪ | Entered into a new senior unsecured $500.0 million delayed draw term loan facility which is currently undrawn and may be drawn anytime on or before July 4, 2012. If the Company elects to draw on this facility, up to the full amount of the principal will be funded in a single borrowing and the maturity date will be January 4, 2013, subject to two one-year extension options exercisable by the Company. The interest rate on advances under the new term loan facility will generally be LIBOR plus a spread (currently 1.25%), which is dependent on the credit rating of the Company's long term debt. |
9. | Derivative and Other Fair Value Instruments |
Fair Value Hedges (1) | Forward Starting Swaps (2) | |||||||
Current Notional Balance | $ | 315,693 | $ | 200,000 | ||||
Lowest Possible Notional | $ | 315,693 | $ | 200,000 | ||||
Highest Possible Notional | $ | 317,694 | $ | 200,000 | ||||
Lowest Interest Rate | 2.009 | % | 3.478 | % | ||||
Highest Interest Rate | 4.800 | % | 4.695 | % | ||||
Earliest Maturity Date | 2012 | 2023 | ||||||
Latest Maturity Date | 2013 | 2023 |
(1) | Fair Value Hedges – Converts outstanding fixed rate debt to a floating interest rate. |
(2) | Forward Starting Swaps – Designed to partially fix the interest rate in advance of a planned future debt issuance. These swaps have mandatory counterparty terminations in 2014, and are targeted to 2013 issuances. |
• | Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. |
• | Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. |
• | Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||
Description | Balance Sheet Location | 3/31/2012 | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Interest Rate Contracts: | ||||||||||||||||||
Fair Value Hedges | Other Assets | $ | 7,672 | $ | — | $ | 7,672 | $ | — | |||||||||
Supplemental Executive Retirement Plan | Other Assets | 55,572 | 55,572 | — | — | |||||||||||||
Available-for-Sale Investment Securities | Other Assets | 1,514 | 1,514 | — | — | |||||||||||||
Total | $ | 64,758 | $ | 57,086 | $ | 7,672 | $ | — | ||||||||||
Liabilities | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Interest Rate Contracts: | ||||||||||||||||||
Forward Starting Swaps | Other Liabilities | $ | 29,061 | $ | — | $ | 29,061 | $ | — | |||||||||
Supplemental Executive Retirement Plan | Other Liabilities | 55,572 | 55,572 | — | — | |||||||||||||
Total | $ | 84,633 | $ | 55,572 | $ | 29,061 | $ | — | ||||||||||
Redeemable Noncontrolling Interests – | ||||||||||||||||||
Operating Partnership/Redeemable | ||||||||||||||||||
Limited Partners | Mezzanine | $ | 457,224 | $ | — | $ | 457,224 | $ | — |
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||
Description | Balance Sheet Location | 12/31/2011 | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Interest Rate Contracts: | ||||||||||||||||||
Fair Value Hedges | Other Assets | $ | 8,972 | $ | — | $ | 8,972 | $ | — | |||||||||
Supplemental Executive Retirement Plan | Other Assets | 71,426 | 71,426 | — | — | |||||||||||||
Available-for-Sale Investment Securities | Other Assets | 1,550 | 1,550 | — | — | |||||||||||||
Total | $ | 81,948 | $ | 72,976 | $ | 8,972 | $ | — | ||||||||||
Liabilities | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Interest Rate Contracts: | ||||||||||||||||||
Forward Starting Swaps | Other Liabilities | $ | 32,278 | $ | — | $ | 32,278 | $ | — | |||||||||
Supplemental Executive Retirement Plan | Other Liabilities | 71,426 | 71,426 | — | — | |||||||||||||
Total | $ | 103,704 | $ | 71,426 | $ | 32,278 | $ | — | ||||||||||
Redeemable Noncontrolling Interests – | ||||||||||||||||||
Operating Partnership/Redeemable | ||||||||||||||||||
Limited Partners | Mezzanine | $ | 416,404 | $ | — | $ | 416,404 | $ | — |
March 31, 2012 Type of Fair Value Hedge | Location of Gain/(Loss) Recognized in Income on Derivative | Amount of Gain/(Loss) Recognized in Income on Derivative | Hedged Item | Income Statement Location of Hedged Item Gain/(Loss) | Amount of Gain/(Loss) Recognized in Income on Hedged Item | |||||||||
Derivatives designated as hedging instruments: | ||||||||||||||
Interest Rate Contracts: | ||||||||||||||
Interest Rate Swaps | Interest expense | $ | (1,300 | ) | Fixed rate debt | Interest expense | $ | 1,300 | ||||||
Total | $ | (1,300 | ) | $ | 1,300 |
March 31, 2011 Type of Fair Value Hedge | Location of Gain/(Loss) Recognized in Income on Derivative | Amount of Gain/(Loss) Recognized in Income on Derivative | Hedged Item | Income Statement Location of Hedged Item Gain/(Loss) | Amount of Gain/(Loss) Recognized in Income on Hedged Item | |||||||||
Derivatives designated as hedging instruments: | ||||||||||||||
Interest Rate Contracts: | ||||||||||||||
Interest Rate Swaps | Interest expense | $ | (1,492 | ) | Fixed rate debt | Interest expense | $ | 1,492 | ||||||
Total | $ | (1,492 | ) | $ | 1,492 |
Effective Portion | Ineffective Portion | |||||||||||||||
March 31, 2012 Type of Cash Flow Hedge | Amount of Gain/(Loss) Recognized in OCI on Derivative | Location of Gain/ (Loss) Reclassified from Accumulated OCI into Income | Amount of Gain/ (Loss) Reclassified from Accumulated OCI into Income | Location of Gain/(Loss) Recognized in Income on Derivative | Amount of Gain/ (Loss) Reclassified from Accumulated OCI into Income | |||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||
Interest Rate Contracts: | ||||||||||||||||
Forward Starting Swaps/Treasury Locks | $ | 3,218 | Interest expense | $ | (3,563 | ) | N/A | $ | — | |||||||
Total | $ | 3,218 | $ | (3,563 | ) | $ | — |
Effective Portion | Ineffective Portion | |||||||||||||||
March 31, 2011 Type of Cash Flow Hedge | Amount of Gain/(Loss) Recognized in OCI on Derivative | Location of Gain/ (Loss) Reclassified from Accumulated OCI into Income | Amount of Gain/ (Loss) Reclassified from Accumulated OCI into Income | Location of Gain/(Loss) Recognized in Income on Derivative | Amount of Gain/ (Loss) Reclassified from Accumulated OCI into Income | |||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||
Interest Rate Contracts: | ||||||||||||||||
Forward Starting Swaps/Treasury Locks | $ | 5,255 | Interest expense | $ | (956 | ) | N/A | $ | — | |||||||
Development Interest Rate Swaps/Caps | 827 | Interest expense | — | N/A | — | |||||||||||
Total | $ | 6,082 | $ | (956 | ) | $ | — |
Other Assets | ||||||||||||||||||||||
March 31, 2012 Security | Maturity | Amortized Cost | Unrealized Gains | Unrealized Losses | Book/ Fair Value | Interest and Other Income | ||||||||||||||||
Available-for-Sale Investment Securities | N/A | $ | 675 | $ | 839 | $ | — | $ | 1,514 | $ | — | |||||||||||
Total | $ | 675 | $ | 839 | $ | — | $ | 1,514 | $ | — |
Other Assets | ||||||||||||||||||||||
December 31, 2011 Security | Maturity | Amortized Cost | Unrealized Gains | Unrealized Losses | Book/ Fair Value | Interest and Other Income | ||||||||||||||||
Available-for-Sale Investment Securities | N/A | $ | 675 | $ | 875 | $ | — | $ | 1,550 | $ | — | |||||||||||
Total | $ | 675 | $ | 875 | $ | — | $ | 1,550 | $ | — |
10. | Earning Per Share and Earnings Per Unit |
Quarter Ended March 31, | ||||||||
2012 | 2011 | |||||||
Numerator for net income per share – basic: | ||||||||
Income (loss) from continuing operations | $ | 17,389 | $ | (8,913 | ) | |||
Allocation to Noncontrolling Interests – Operating Partnership, net | (582 | ) | 543 | |||||
Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties | (450 | ) | 40 | |||||
Preferred distributions | (3,466 | ) | (3,466 | ) | ||||
Income (loss) from continuing operations available to Common Shares, net of Noncontrolling Interests | 12,891 | (11,796 | ) | |||||
Discontinued operations, net of Noncontrolling Interests | 128,942 | 135,661 | ||||||
Numerator for net income per share – basic | $ | 141,833 | $ | 123,865 | ||||
Numerator for net income per share – diluted (1): | ||||||||
Income from continuing operations | $ | 17,389 | ||||||
Net (income) attributable to Noncontrolling Interests – Partially Owned Properties | (450 | ) | ||||||
Preferred distributions | (3,466 | ) | ||||||
Income from continuing operations available to Common Shares | 13,473 | |||||||
Discontinued operations, net | 134,778 | |||||||
Numerator for net income per share – diluted (1) | $ | 148,251 | $ | 123,865 | ||||
Denominator for net income per share – basic and diluted (1): | ||||||||
Denominator for net income per share – basic | 298,805 | 292,895 | ||||||
Effect of dilutive securities: | ||||||||
OP Units | 13,206 | |||||||
Long-term compensation shares/units | 3,219 | |||||||
Denominator for net income per share – diluted (1) | 315,230 | 292,895 | ||||||
Net income per share – basic | $ | 0.47 | $ | 0.42 | ||||
Net income per share – diluted | $ | 0.47 | $ | 0.42 | ||||
Net income per share – basic: | ||||||||
Income (loss) from continuing operations available to Common Shares, net of Noncontrolling Interests | $ | 0.043 | $ | (0.040 | ) | |||
Discontinued operations, net of Noncontrolling Interests | 0.432 | 0.463 | ||||||
Net income per share – basic | $ | 0.475 | $ | 0.423 | ||||
Net income per share – diluted (1): | ||||||||
Income (loss) from continuing operations available to Common Shares | $ | 0.043 | $ | (0.040 | ) | |||
Discontinued operations, net | 0.427 | 0.463 | ||||||
Net income per share – diluted | $ | 0.470 | $ | 0.423 |
(1) | Potential common shares issuable from the assumed conversion of OP Units and the exercise/vesting of long-term compensation shares/units are automatically anti-dilutive and therefore excluded from the diluted earnings per share calculation as the Company had a loss from continuing operations for the quarter ended March 31, 2011. |
Quarter Ended March 31, | ||||||||
2012 | 2011 | |||||||
Numerator for net income per Unit – basic and diluted (1): | ||||||||
Income (loss) from continuing operations | $ | 17,389 | $ | (8,913 | ) | |||
Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties | (450 | ) | 40 | |||||
Allocation to Preference Units | (3,466 | ) | (3,466 | ) | ||||
Income (loss) from continuing operations available to Units | 13,473 | (12,339 | ) | |||||
Discontinued operations, net | 134,778 | 141,979 | ||||||
Numerator for net income per Unit – basic and diluted (1) | $ | 148,251 | $ | 129,640 | ||||
Denominator for net income per Unit – basic and diluted (1): | ||||||||
Denominator for net income per Unit – basic | 312,011 | 306,248 | ||||||
Effect of dilutive securities: | ||||||||
Dilution for Units issuable upon assumed exercise/vesting of the Company’s long-term compensation shares/units | 3,219 | |||||||
Denominator for net income per Unit – diluted (1) | 315,230 | 306,248 | ||||||
Net income per Unit – basic | $ | 0.47 | $ | 0.42 | ||||
Net income per Unit – diluted | $ | 0.47 | $ | 0.42 | ||||
Net income per Unit – basic: | ||||||||
Income (loss) from continuing operations available to Units | $ | 0.043 | $ | (0.040 | ) | |||
Discontinued operations, net | 0.432 | 0.463 | ||||||
Net income per Unit – basic | $ | 0.475 | $ | 0.423 | ||||
Net income per Unit – diluted (1): | ||||||||
Income (loss) from continuing operations available to Units | $ | 0.043 | $ | (0.040 | ) | |||
Discontinued operations, net | 0.427 | 0.463 | ||||||
Net income per Unit – diluted | $ | 0.470 | $ | 0.423 |
(1) | Potential Units issuable from the assumed exercise/vesting of the Company’s long-term compensation shares/units are automatically anti-dilutive and therefore excluded from the diluted earnings per Unit calculation as the Operating Partnership had a loss from continuing operations for the quarter ended March 31, 2011. |
11. | Discontinued Operations |
Quarter Ended March 31, | ||||||||
2012 | 2011 | |||||||
REVENUES | ||||||||
Rental income | $ | 2,931 | $ | 60,157 | ||||
Total revenues | 2,931 | 60,157 | ||||||
EXPENSES (1) | ||||||||
Property and maintenance | 422 | 26,019 | ||||||
Real estate taxes and insurance | 250 | 4,362 | ||||||
Depreciation | 371 | 10,908 | ||||||
General and administrative | 4 | 11 | ||||||
Total expenses | 1,047 | 41,300 | ||||||
Discontinued operating income | 1,884 | 18,857 | ||||||
Interest and other income | 25 | 5 | ||||||
Other expenses | — | (4 | ) | |||||
Interest (2): | ||||||||
Expense incurred, net | (7 | ) | (522 | ) | ||||
Amortization of deferred financing costs | — | (69 | ) | |||||
Income and other tax (expense) benefit | (80 | ) | (42 | ) | ||||
Discontinued operations | 1,822 | 18,225 | ||||||
Net gain on sales of discontinued operations | 132,956 | 123,754 | ||||||
Discontinued operations, net | $ | 134,778 | $ | 141,979 |
(1) | Includes expenses paid in the current period for properties sold or held for sale in prior periods related to the Company’s period of ownership. |
(2) | Includes only interest expense specific to secured mortgage notes payable for properties sold and/or held for sale. |
12. | Commitments and Contingencies |
13. | Reportable Segments |
Quarter Ended March 31, 2012 | ||||||||||||||||||||||||
Northeast | Northwest | Southeast | Southwest | Other (3) | Total | |||||||||||||||||||
Rental income: | ||||||||||||||||||||||||
Same store (1) | $ | 174,263 | $ | 95,751 | $ | 91,757 | $ | 112,186 | $ | — | $ | 473,957 | ||||||||||||
Non-same store/other (2) (3) | 20,378 | 10,166 | 4,770 | 13,930 | 2,394 | 51,638 | ||||||||||||||||||
Total rental income | 194,641 | 105,917 | 96,527 | 126,116 | 2,394 | 525,595 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Same store (1) | 66,000 | 33,303 | 36,170 | 37,581 | — | 173,054 | ||||||||||||||||||
Non-same store/other (2) (3) | 4,583 | 5,469 | 1,664 | 4,662 | 2,343 | 18,721 | ||||||||||||||||||
Total operating expenses | 70,583 | 38,772 | 37,834 | 42,243 | 2,343 | 191,775 | ||||||||||||||||||
NOI: | ||||||||||||||||||||||||
Same store (1) | 108,263 | 62,448 | 55,587 | 74,605 | — | 300,903 | ||||||||||||||||||
Non-same store/other (2) (3) | 15,795 | 4,697 | 3,106 | 9,268 | 51 | 32,917 | ||||||||||||||||||
Total NOI | $ | 124,058 | $ | 67,145 | $ | 58,693 | $ | 83,873 | $ | 51 | $ | 333,820 | ||||||||||||
Total assets | $ | 6,458,496 | $ | 2,931,942 | $ | 2,483,091 | $ | 3,392,065 | $ | 1,215,653 | $ | 16,481,247 | ||||||||||||
Capital expenditures | $ | 9,843 | $ | 6,506 | $ | 7,440 | $ | 5,419 | $ | 1,017 | $ | 30,225 |
(1) | Same store primarily includes all properties acquired or completed and stabilized prior to January 1, 2011, less properties subsequently sold, which represented 105,612 apartment units. |
(2) | Non-same store primarily includes properties acquired after January 1, 2011, plus any properties in lease-up and not stabilized as of January 1, 2011. |
(3) | Other includes development and other corporate operations. |
Quarter Ended March 31, 2011 | ||||||||||||||||||||||||
Northeast | Northwest | Southeast | Southwest | Other (3) | Total | |||||||||||||||||||
Rental income: | ||||||||||||||||||||||||
Same store (1) | $ | 164,859 | $ | 88,197 | $ | 88,061 | $ | 108,115 | $ | — | $ | 449,232 | ||||||||||||
Non-same store/other (2) (3) | 7,658 | 899 | 2,924 | 3,715 | 122 | 15,318 | ||||||||||||||||||
Total rental income | 172,517 | 89,096 | 90,985 | 111,830 | 122 | 464,550 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Same store (1) | 65,195 | 32,279 | 35,496 | 37,047 | — | 170,017 | ||||||||||||||||||
Non-same store/other (2) (3) | 2,486 | 268 | 1,134 | 1,927 | 3,735 | 9,550 | ||||||||||||||||||
Total operating expenses | 67,681 | 32,547 | 36,630 | 38,974 | 3,735 | 179,567 | ||||||||||||||||||
NOI: | ||||||||||||||||||||||||
Same store (1) | 99,664 | 55,918 | 52,565 | 71,068 | — | 279,215 | ||||||||||||||||||
Non-same store/other (2) (3) | 5,172 | 631 | 1,790 | 1,788 | (3,613 | ) | 5,768 | |||||||||||||||||
Total NOI | $ | 104,836 | $ | 56,549 | $ | 54,355 | $ | 72,856 | $ | (3,613 | ) | $ | 284,983 |
(1) | Same store primarily includes all properties acquired or completed and stabilized prior to January 1, 2011, less properties subsequently sold, which represented 105,612 apartment units. |
(2) | Non-same store primarily includes properties acquired after January 1, 2011, plus any properties in lease-up and not stabilized as of January 1, 2011. |
(3) | Other includes development, condominium conversion overhead of $0.1 million and other corporate operations. |
(a) | Northeast – New England (excluding Boston), Boston, New York Metro, DC Northern Virginia and Suburban Maryland. |
(b) | Northwest – Denver, San Francisco Bay Area and Seattle/Tacoma. |
(c) | Southeast – Atlanta, Jacksonville, Orlando and South Florida. |
(d) | Southwest – Inland Empire, Los Angeles, Orange County, Phoenix and San Diego. |
Quarter Ended March 31, | ||||||||
2012 | 2011 | |||||||
Rental income | $ | 525,595 | $ | 464,550 | ||||
Property and maintenance expense | (112,379 | ) | (105,047 | ) | ||||
Real estate taxes and insurance expense | (55,987 | ) | (52,139 | ) | ||||
Property management expense | (23,409 | ) | (22,381 | ) | ||||
Total operating expenses | (191,775 | ) | (179,567 | ) | ||||
Net operating income | $ | 333,820 | $ | 284,983 |
14. | Subsequent Events/Other |
• | Acquired one property consisting of 511 apartment units for $230.9 million; |
• | Sold four properties consisting of 351 apartment units for $15.6 million; |
• | Assumed $90.0 million of mortgage debt and issued 1,081,797 OP Units in conjunction with the acquisition of one property; and |
• | Repaid $30.8 million in mortgage loans. |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
▪ | We intend to actively acquire and/or develop multifamily properties for rental operations as market conditions dictate. We may also acquire multifamily properties that are unoccupied or in the early stages of lease up. We may be unable to lease up these apartment properties on schedule, resulting in decreases in expected rental revenues and/or lower yields due to lower occupancy and rates as well as higher than expected concessions. We may underestimate the costs necessary to bring an acquired property up to standards established for its intended market position or to complete a development property. Additionally, we expect that other real estate investors with capital will compete with us for attractive investment opportunities or may also develop properties in markets where we focus our development and acquisition efforts. This competition (or lack thereof) may increase (or depress) prices for multifamily properties. We may not be in a position or have the opportunity in the future to make suitable property acquisitions on favorable terms. We have acquired in the past and intend to continue to pursue the acquisition of properties and portfolios of properties, including large portfolios, that could increase our size and result in alterations to our capital structure. The total number of apartment units under development, costs of development and estimated completion dates are subject to uncertainties arising from changing economic conditions (such as the cost of labor and construction materials), competition and local government regulation; |
▪ | Debt financing and other capital required by the Company may not be available or may only be available on adverse terms; |
▪ | Labor and materials required for maintenance, repair, capital expenditure or development may be more expensive than anticipated; |
▪ | Occupancy levels and market rents may be adversely affected by national and local economic and market conditions including, without limitation, new construction and excess inventory of multifamily and single family housing, rental housing subsidized by the government, other government programs that favor single family rental housing or owner occupied housing over multifamily rental housing, slow or negative employment growth and household formation, the availability of low-interest mortgages for single family home buyers, changes in social preferences and the potential for geopolitical instability, all of which are beyond the Company's control; and |
▪ | Additional factors as discussed in Part I of the Company’s and the Operating Partnership's Annual Report on Form 10-K, particularly those under “Item 1A. Risk Factors”. |
▪ | High barriers to entry where, because of land scarcity or government regulation, it is difficult or costly to build new apartment properties, creating limits on new supply; |
▪ | High single family home prices making our apartments a more economical housing choice; |
▪ | Strong economic growth leading to household formation and job growth, which in turn leads to high demand for our apartments; and |
▪ | An attractive quality of life leading to high demand and retention that allows us to increase rents. |
▪ | Acquired $159.1 million of apartment properties consisting of three consolidated properties and 544 apartment units at a weighted average cap rate (see definition below) of 4.4% and two land parcels for $23.7 million, all of which we deem to be in our strategic targeted markets; and |
▪ | Sold $206.4 million of consolidated apartment properties consisting of three properties and 1,522 apartment units at a weighted average cap rate of 6.2% generating an unlevered internal rate of return (IRR), inclusive of management |
Apartment Units 2012 | ||
Same Store Properties at December 31, 2011 | 101,312 | |
2010 acquisitions | 4,445 | |
2010 acquisitions not stabilized | (1,238 | ) |
2012 dispositions | (1,522 | ) |
Consolidation of previously unconsolidated properties in 2010 (1) | 1,043 | |
Lease-up properties stabilized | 1,570 | |
Other | 2 | |
Same Store Properties at March 31, 2012 | 105,612 | |
Apartment Units 2012 | ||
Same Store | 105,612 | |
Non-Same Store: | ||
2012 acquisitions | 544 | |
2011 acquisitions | 6,198 | |
Lease-up properties not yet stabilized (2) | 3,741 | |
Other | 2 | |
Total Non-Same Store | 10,485 | |
Military Housing (not consolidated) | 4,914 | |
Total Apartment Units | 121,011 | |
(1) | In 2010, the Company consolidated 1,811 apartment units that had previously been categorized as unconsolidated. Of these 1,811 apartment units, 208 apartment units were sold in 2010 and 560 apartment units were sold in 2011. |
(2) | Includes properties in various stages of lease-up and properties where lease-up has been completed but the properties were not stabilized for the comparable periods presented. |
First Quarter 2012 vs. First Quarter 2011 | ||||||||||||||||||||||
Same Store Results/Statistics | ||||||||||||||||||||||
$ in thousands (except for Average Rental Rate) – 105,612 Same Store Apartment Units | ||||||||||||||||||||||
Results | Statistics | |||||||||||||||||||||
Description | Revenues | Expenses | NOI | Average Rental Rate (1) | Occupancy | Turnover | ||||||||||||||||
Q1 2012 | $ | 473,957 | $ | 173,054 | $ | 300,903 | $ | 1,578 | 94.9 | % | 12.5 | % | ||||||||||
Q1 2011 | $ | 449,232 | $ | 170,017 | $ | 279,215 | $ | 1,496 | 94.9 | % | 11.5 | % | ||||||||||
Change | $ | 24,725 | $ | 3,037 | $ | 21,688 | $ | 82 | 0.0 | % | 1.0 | % | ||||||||||
Change | 5.5 | % | 1.8 | % | 7.8 | % | 5.5 | % |
(1) | Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment units for the period. |
First Quarter 2012 vs. First Quarter 2011 | ||||||||||||||||||
Same Store Operating Expenses | ||||||||||||||||||
$ in thousands – 105,612 Same Store Apartment Units | ||||||||||||||||||
Actual Q1 2012 | Actual Q1 2011 | $ Change | % Change | % of Actual Q1 2012 Operating Expenses | ||||||||||||||
Real estate taxes | $ | 50,167 | $ | 47,730 | $ | 2,437 | 5.1 | % | 29.0 | % | ||||||||
On-site payroll (1) | 39,913 | 39,168 | 745 | 1.9 | % | 23.1 | % | |||||||||||
Utilities (2) | 27,160 | 28,531 | (1,371 | ) | (4.8 | )% | 15.7 | % | ||||||||||
Repairs and maintenance (3) | 23,129 | 22,638 | 491 | 2.2 | % | 13.4 | % | |||||||||||
Property management costs (4) | 18,247 | 17,969 | 278 | 1.5 | % | 10.5 | % | |||||||||||
Insurance | 5,436 | 5,095 | 341 | 6.7 | % | 3.1 | % | |||||||||||
Leasing and advertising | 2,700 | 3,354 | (654 | ) | (19.5 | )% | 1.6 | % | ||||||||||
Other on-site operating expenses (5) | 6,302 | 5,532 | 770 | 13.9 | % | 3.6 | % | |||||||||||
Same store operating expenses | $ | 173,054 | $ | 170,017 | $ | 3,037 | 1.8 | % | 100.0 | % |
(1) | On-site payroll – Includes payroll and related expenses for on-site personnel including property managers, leasing consultants and maintenance staff. |
(2) | Utilities – Represents gross expenses prior to any recoveries under the Resident Utility Billing System (“RUBS”). Recoveries are reflected in rental income. |
(3) | Repairs and maintenance – Includes general maintenance costs, apartment unit turnover costs including interior painting, routine landscaping, security, exterminating, fire protection, snow removal, elevator, roof and parking lot repairs and other miscellaneous building repair costs. |
(4) | Property management costs – Includes payroll and related expenses for departments, or portions of departments, that directly support on-site management. These include such departments as regional and corporate property management, property accounting, human resources, training, marketing and revenue management, procurement, real estate tax, property legal services and information technology. |
(5) | Other on-site operating expenses – Includes administrative costs such as office supplies, telephone and data charges and association and business licensing fees. |
Quarter Ended March 31, | ||||||||
2012 | 2011 | |||||||
(Amounts in thousands) | ||||||||
Operating income | $ | 146,152 | $ | 115,953 | ||||
Adjustments: | ||||||||
Non-same store operating results | (32,917 | ) | (5,768 | ) | ||||
Fee and asset management revenue | (2,064 | ) | (1,806 | ) | ||||
Fee and asset management expense | 1,307 | 948 | ||||||
Depreciation | 174,737 | 158,455 | ||||||
General and administrative | 13,688 | 11,433 | ||||||
Same store NOI | $ | 300,903 | $ | 279,215 |
2012 Same Store Assumptions | |
Physical occupancy | 95.2% |
Revenue change | 5.0% to 6.0% |
Expense change | 1.5 % to 2.5% |
NOI change | 6.5% to 8.5% |
▪ | Development and other miscellaneous properties in lease-up of $3.5 million; |
▪ | Properties acquired in 2011 and 2012 of $16.4 million; and |
▪ | Newly stabilized development and other miscellaneous properties of $3.0 million. |
▪ | Disposed of three consolidated properties, receiving net proceeds of approximately $204.3 million; and |
▪ | Issued approximately 2.9 million Common Shares (including Common Shares issued under the ATM program – see further discussion below) and received net proceeds of $146.7 million, which were contributed to the capital of the Operating Partnership in exchange for additional OP Units (on a one-for-one Common Share per OP Unit basis). |
• | Acquire three rental properties and two land parcels for approximately $183.1 million; |
• | Invest $35.9 million primarily in development projects; and |
• | Repay $51.8 million of mortgage loans and $253.9 million of unsecured notes. |
Debt Summary as of March 31, 2012 | |||||||||||||
(Amounts in thousands) | |||||||||||||
Amounts (1) | % of Total | Weighted Average Rates (1) | Weighted Average Maturities (years) | ||||||||||
Secured | $ | 4,056,976 | 43.1 | % | 4.88 | % | 8.1 | ||||||
Unsecured | 5,355,590 | 56.9 | % | 5.14 | % | 5.1 | |||||||
Total | $ | 9,412,566 | 100.0 | % | 5.03 | % | 6.4 | ||||||
Fixed Rate Debt: | |||||||||||||
Secured – Conventional | $ | 3,527,819 | 37.5 | % | 5.53 | % | 6.7 | ||||||
Unsecured – Public/Private | 4,549,919 | 48.3 | % | 5.73 | % | 5.9 | |||||||
Fixed Rate Debt | 8,077,738 | 85.8 | % | 5.64 | % | 6.3 | |||||||
Floating Rate Debt: | |||||||||||||
Secured – Conventional | 64,061 | 0.7 | % | 3.33 | % | 1.2 | |||||||
Secured – Tax Exempt | 465,096 | 4.9 | % | 0.15 | % | 20.6 | |||||||
Unsecured – Public/Private | 805,671 | 8.6 | % | 1.68 | % | 0.7 | |||||||
Unsecured – Revolving Credit Facility | — | — | — | 2.3 | |||||||||
Floating Rate Debt | 1,334,828 | 14.2 | % | 1.23 | % | 7.3 | |||||||
Total | $ | 9,412,566 | 100.0 | % | 5.03 | % | 6.4 |
(1) | Net of the effect of any derivative instruments. Weighted average rates are for the quarter ended March 31, 2012. |
Debt Maturity Schedule as of March 31, 2012 | |||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||
Year | Fixed Rate (1) | Floating Rate (1) | Total | % of Total | Weighted Average Rates on Fixed Rate Debt (1) | Weighted Average Rates on Total Debt (1) | |||||||||||||||||
2012 | $ | 315,756 | $ | 535,546 | (2) | $ | 851,302 | 9.0 | % | 5.62 | % | 2.69 | % | ||||||||||
2013 | 267,869 | 306,182 | 574,051 | 6.1 | % | 6.70 | % | 4.86 | % | ||||||||||||||
2014 | 564,477 | 22,019 | 586,496 | 6.2 | % | 5.31 | % | 5.24 | % | ||||||||||||||
2015 | 418,012 | — | 418,012 | 4.4 | % | 6.31 | % | 6.31 | % | ||||||||||||||
2016 | 1,190,610 | — | 1,190,610 | 12.7 | % | 5.34 | % | 5.34 | % | ||||||||||||||
2017 | 1,355,806 | 456 | 1,356,262 | 14.4 | % | 5.87 | % | 5.87 | % | ||||||||||||||
2018 | 80,901 | 18,419 | 99,320 | 1.1 | % | 5.71 | % | 4.82 | % | ||||||||||||||
2019 | 802,043 | 20,766 | 822,809 | 8.7 | % | 5.49 | % | 5.36 | % | ||||||||||||||
2020 | 1,671,868 | 809 | 1,672,677 | 17.8 | % | 5.50 | % | 5.50 | % | ||||||||||||||
2021 | 1,165,475 | 856 | 1,166,331 | 12.4 | % | 4.64 | % | 4.64 | % | ||||||||||||||
2022+ | 233,860 | 435,539 | 669,399 | 7.1 | % | 6.75 | % | 2.88 | % | ||||||||||||||
Premium/(Discount) | 11,061 | (5,764 | ) | 5,297 | 0.1 | % | N/A | N/A | |||||||||||||||
Total | $ | 8,077,738 | $ | 1,334,828 | $ | 9,412,566 | 100.0 | % | 5.52 | % | 4.95 | % |
(1) | Net of the effect of any derivative instruments. Weighted average rates are as of March 31, 2012. |
(2) | Effective April 5, 2011, the Company exercised the second of its two one-year extension options for its $500.0 million term loan facility and as a result, the maturity date is now October 5, 2012. |
Unsecured Debt Summary as of March 31, 2012 | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Coupon Rate | Due Date | Face Amount | Unamortized Premium/ (Discount) | Net Balance | ||||||||||||||
Fixed Rate Notes: | ||||||||||||||||||
5.500% | 10/01/12 | $ | 222,133 | $ | (109 | ) | $ | 222,024 | ||||||||||
5.200% | 04/01/13 | (1) | 400,000 | (118 | ) | 399,882 | ||||||||||||
Fair Value Derivative Adjustments | (1) | (300,000 | ) | — | (300,000 | ) | ||||||||||||
5.250% | 09/15/14 | 500,000 | (151 | ) | 499,849 | |||||||||||||
6.584% | 04/13/15 | 300,000 | (331 | ) | 299,669 | |||||||||||||
5.125% | 03/15/16 | 500,000 | (211 | ) | 499,789 | |||||||||||||
5.375% | 08/01/16 | 400,000 | (804 | ) | 399,196 | |||||||||||||
5.750% | 06/15/17 | 650,000 | (2,670 | ) | 647,330 | |||||||||||||
7.125% | 10/15/17 | 150,000 | (360 | ) | 149,640 | |||||||||||||
4.750% | 07/15/20 | 600,000 | (3,777 | ) | 596,223 | |||||||||||||
4.625% | 12/15/21 | 1,000,000 | (3,683 | ) | 996,317 | |||||||||||||
7.570% | 08/15/26 | 140,000 | — | 140,000 | ||||||||||||||
4,562,133 | (12,214 | ) | 4,549,919 | |||||||||||||||
Floating Rate Notes: | ||||||||||||||||||
04/01/13 | (1) | 300,000 | — | 300,000 | ||||||||||||||
Fair Value Derivative Adjustments | (1) | 5,671 | — | 5,671 | ||||||||||||||
Term Loan Facility | LIBOR+0.50% | 10/05/12 | (2)(3) | 500,000 | — | 500,000 | ||||||||||||
Delayed Draw Term Loan Facility | LIBOR+1.25% | 01/04/13 | (2)(4) | — | — | — | ||||||||||||
805,671 | — | 805,671 | ||||||||||||||||
Revolving Credit Facility: | LIBOR+1.15% | 07/13/14 | (2)(5) | — | — | — | ||||||||||||
Total Unsecured Debt | $ | 5,367,804 | $ | (12,214 | ) | $ | 5,355,590 |
(1) | Fair value interest rate swaps convert $300.0 million of the 5.200% notes due April 1, 2013 to a floating interest rate. |
(2) | Facilities are private. All other unsecured debt is public. |
(3) | Effective April 5, 2011, the Company exercised the second of its two one-year extension options for its $500.0 million term loan facility and as a result, the maturity date is now October 5, 2012. |
(4) | On January 6, 2012, the Company entered into a new senior unsecured $500.0 million delayed draw term loan facility that may be drawn anytime on or before July 4, 2012 and is currently undrawn. If the Company elects to draw on this facility, up to the full amount of the principal will be funded in a single borrowing and the maturity date will be January 4, 2013, subject to two one-year extension options exercisable by the Company. The interest rate on advances under the new term loan facility will generally be LIBOR plus a spread (currently 1.25%), which is dependent on the credit rating of the Company's long term debt. |
(5) | As of March 31, 2012, there was approximately $1.72 billion available on the Company’s unsecured revolving credit facility. |
Equity Residential | |||||||||||||||||
Capital Structure as of March 31, 2012 | |||||||||||||||||
(Amounts in thousands except for share/unit and per share amounts) | |||||||||||||||||
Secured Debt | $ | 4,056,976 | 43.1 | % | |||||||||||||
Unsecured Debt | 5,355,590 | 56.9 | % | ||||||||||||||
Total Debt | 9,412,566 | 100.0 | % | 32.1 | % | ||||||||||||
Common Shares (includes Restricted Shares) | 300,522,169 | 95.7 | % | ||||||||||||||
Units (includes OP Units and LTIP Units) | 13,531,417 | 4.3 | % | ||||||||||||||
Total Shares and Units | 314,053,586 | 100.0 | % | ||||||||||||||
Common Share Price at March 31, 2012 | $ | 62.62 | |||||||||||||||
19,666,036 | 99.0 | % | |||||||||||||||
Perpetual Preferred Equity (see below) | 200,000 | 1.0 | % | ||||||||||||||
Total Equity | 19,866,036 | 100.0 | % | 67.9 | % | ||||||||||||
Total Market Capitalization | $ | 29,278,602 | 100.0 | % |
Equity Residential | ||||||||||||||||||||
Perpetual Preferred Equity as of March 31, 2012 | ||||||||||||||||||||
(Amounts in thousands except for share and per share amounts) | ||||||||||||||||||||
Series | Redemption Date | Outstanding Shares | Liquidation Value | Annual Dividend Per Share | Annual Dividend Amount | Weighted Average Rate | ||||||||||||||
Preferred Shares: | ||||||||||||||||||||
8.29% Series K | 12/10/26 | 1,000,000 | $ | 50,000 | $ | 4.145 | $ | 4,145 | ||||||||||||
6.48% Series N | 06/19/08 | 600,000 | 150,000 | 16.20 | 9,720 | |||||||||||||||
Total Perpetual Preferred Equity | 1,600,000 | $ | 200,000 | $ | 13,865 | 6.93 | % |
ERP Operating Limited Partnership | ||||||||||||||
Capital Structure as of March 31, 2012 | ||||||||||||||
(Amounts in thousands except for unit and per unit amounts) | ||||||||||||||
Secured Debt | $ | 4,056,976 | 43.1 | % | ||||||||||
Unsecured Debt | 5,355,590 | 56.9 | % | |||||||||||
Total Debt | 9,412,566 | 100.0 | % | 32.1 | % | |||||||||
Total outstanding Units | 314,053,586 | |||||||||||||
Common Share Price at March 31, 2012 | $ | 62.62 | ||||||||||||
19,666,036 | 99.0 | % | ||||||||||||
Perpetual Preference Units (see below) | 200,000 | 1.0 | % | |||||||||||
Total Equity | 19,866,036 | 100.0 | % | 67.9 | % | |||||||||
Total Market Capitalization | $ | 29,278,602 | 100.0 | % |
ERP Operating Limited Partnership | ||||||||||||||||||||
Perpetual Preference Units as of March 31, 2012 | ||||||||||||||||||||
(Amounts in thousands except for unit and per unit amounts) | ||||||||||||||||||||
Series | Redemption Date | Outstanding Units | Liquidation Value | Annual Dividend Per Unit | Annual Dividend Amount | Weighted Average Rate | ||||||||||||||
Preference Units: | ||||||||||||||||||||
8.29% Series K | 12/10/26 | 1,000,000 | $ | 50,000 | $ | 4.145 | $ | 4,145 | ||||||||||||
6.48% Series N | 06/19/08 | 600,000 | 150,000 | 16.20 | 9,720 | |||||||||||||||
Total Perpetual Preference Units | 1,600,000 | $ | 200,000 | $ | 13,865 | 6.93 | % |
▪ | Replacements (inside the apartment unit). These include: |
▪ | flooring such as carpets, hardwood, vinyl, linoleum or tile; |
▪ | appliances; |
▪ | mechanical equipment such as individual furnace/air units, hot water heaters, etc; |
▪ | furniture and fixtures such as kitchen/bath cabinets, light fixtures, ceiling fans, sinks, tubs, toilets, mirrors, countertops, etc; and |
▪ | blinds/shades. |
▪ | Building improvements (outside the apartment unit). These include: |
▪ | roof replacement and major repairs; |
▪ | paving or major resurfacing of parking lots, curbs and sidewalks; |
▪ | amenities and common areas such as pools, exterior sports and playground equipment, lobbies, clubhouses, laundry rooms, alarm and security systems and offices; |
▪ | major building mechanical equipment systems; |
▪ | interior and exterior structural repair and exterior painting and siding; |
▪ | major landscaping and grounds improvement; and |
▪ | vehicles and office and maintenance equipment. |
Capital Expenditures to Real Estate | |||||||||||||||||||||||||||
For the Quarter Ended March 31, 2012 | |||||||||||||||||||||||||||
Total Apartment Units (1) | Replacements (2) | Avg. Per Apartment Unit | Building Improvements | Avg. Per Apartment Unit | Total | Avg. Per Apartment Unit | |||||||||||||||||||||
Same Store Properties (3) | 105,612 | $ | 15,185 | $ | 144 | $ | 9,949 | $ | 94 | $ | 25,134 | $ | 238 | ||||||||||||||
Non-Same Store Properties (4) | 10,485 | 1,299 | 130 | 3,682 | 369 | 4,981 | 499 | ||||||||||||||||||||
Other (5) | — | 83 | 27 | 110 | |||||||||||||||||||||||
Total | 116,097 | $ | 16,567 | $ | 13,658 | $ | 30,225 |
(1) | Total Apartment Units – Excludes 4,914 military housing apartment units for which repairs and maintenance expenses and capital expenditures to real estate are self-funded and do not consolidate into the Company’s results. |
(2) | Replacements – Includes new expenditures inside the apartment units such as appliances, mechanical equipment, fixtures and flooring, including carpeting. Replacements for same store properties also include $7.3 million spent in Q1 2012 on apartment unit renovations/rehabs (primarily kitchens and baths) on 1,027 apartment units (equating to about $7,100 per apartment unit rehabbed) designed to reposition these assets for higher rental levels in their respective markets. |
(3) | Same Store Properties – Primarily includes all properties acquired or completed and stabilized prior to January 1, 2011, less properties subsequently sold. |
(4) | Non-Same Store Properties – Primarily includes all properties acquired during 2011 and 2012, plus any properties in lease-up and not stabilized as of January 1, 2011. Per apartment unit amounts are based on a weighted average of 9,988 apartment units. |
(5) | Other – Primarily includes expenditures for properties sold during the period. |
Funds From Operations and Normalized Funds From Operations | ||||||||
(Amounts in thousands) | ||||||||
Quarter Ended March 31, | ||||||||
2012 | 2011 | |||||||
Net income | $ | 152,167 | $ | 133,066 | ||||
Adjustments: | ||||||||
Net (income) loss attributable to Noncontrolling Interests – | ||||||||
Partially Owned Properties | (450 | ) | 40 | |||||
Depreciation | 174,737 | 158,455 | ||||||
Depreciation – Non-real estate additions | (1,354 | ) | (1,385 | ) | ||||
Depreciation – Partially Owned and Unconsolidated Properties | (800 | ) | (750 | ) | ||||
Discontinued operations: | ||||||||
Depreciation | 371 | 10,855 | ||||||
Net (gain) on sales of discontinued operations | (132,956 | ) | (123,754 | ) | ||||
Net incremental gain on sales of condominium units | 49 | 395 | ||||||
FFO (1) (3) | 191,764 | 176,922 | ||||||
Adjustments: | ||||||||
Asset impairment and valuation allowances | — | — | ||||||
Property acquisition costs and write-off of pursuit costs (other expenses) | 2,626 | 2,164 | ||||||
Debt extinguishment (gains) losses, including prepayment penalties, preferred share/preference unit redemptions and non-cash convertible debt discounts | (41 | ) | 2,063 | |||||
(Gains) losses on sales of non-operating assets, net of income and other tax expense (benefit) | (4 | ) | (376 | ) | ||||
Other miscellaneous non-comparable items | 974 | (2,100 | ) | |||||
Normalized FFO (2) (3) | $ | 195,319 | $ | 178,673 | ||||
FFO (1) (3) | $ | 191,764 | $ | 176,922 | ||||
Preferred/preference distributions | (3,466 | ) | (3,466 | ) | ||||
FFO available to Common Shares and Units / Units (1) (3) (4) | $ | 188,298 | $ | 173,456 | ||||
Normalized FFO (2) (3) | $ | 195,319 | $ | 178,673 | ||||
Preferred/preference distributions | (3,466 | ) | (3,466 | ) | ||||
Normalized FFO available to Common Shares and Units / Units (2) (3) (4) | $ | 191,853 | $ | 175,207 |
(1) | The National Association of Real Estate Investment Trusts (“NAREIT”) defines funds from operations (“FFO”) (April 2002 White Paper) as net income (computed in accordance with accounting principles generally accepted in the United States (“GAAP”)), excluding gains (or losses) from sales and impairment write-downs of depreciable operating properties, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis. The April 2002 White Paper states that gain or loss on sales of property is excluded from FFO for previously depreciated operating properties only. Once the Company commences the conversion of apartment units to condominiums, it simultaneously discontinues depreciation of such property. |
(2) | Normalized funds from operations (“Normalized FFO”) begins with FFO and excludes: |
▪ | the impact of any expenses relating to non-operating asset impairment and valuation allowances; |
▪ | property acquisition and other transaction costs related to mergers and acquisitions and pursuit cost write-offs (other expenses); |
▪ | gains and losses from early debt extinguishment, including prepayment penalties, preferred share/preference unit redemptions and the cost related to the implied option value of non-cash convertible debt discounts; |
▪ | gains and losses on the sales of non-operating assets, including gains and losses from land parcel and condominium sales, net of the effect of income tax benefits or expenses; and |
▪ | other miscellaneous non-comparable items. |
(3) | The Company believes that FFO and FFO available to Common Shares and Units / Units are helpful to investors as supplemental measures of the operating performance of a real estate company, because they are recognized measures of performance by the real estate industry and by excluding gains or losses related to dispositions of depreciable property and excluding real estate depreciation (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates). FFO and FFO available |
(4) | FFO available to Common Shares and Units / Units and Normalized FFO available to Common Shares and Units / Units are calculated on a basis consistent with net income available to Common Shares / Units and reflects adjustments to net income for preferred distributions and premiums on redemption of preferred shares/preference units in accordance with accounting principles generally accepted in the United States. The equity positions of various individuals and entities that contributed their properties to the Operating Partnership in exchange for OP Units are collectively referred to as the “Noncontrolling Interests – Operating Partnership”. Subject to certain restrictions, the Noncontrolling Interests – Operating Partnership may exchange their OP Units for Common Shares on a one-for-one basis. |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits – See the Exhibit Index |
EQUITY RESIDENTIAL | |||||
Date: | May 3, 2012 | By: | /s/ Mark J. Parrell | ||
Mark J. Parrell | |||||
Executive Vice President and Chief Financial Officer | |||||
(Principal Financial Officer) | |||||
Date: | May 3, 2012 | By: | /s/ Ian S. Kaufman | ||
Ian S. Kaufman | |||||
Senior Vice President and Chief Accounting Officer | |||||
(Principal Accounting Officer) | |||||
ERP OPERATING LIMITED PARTNERSHIP BY: EQUITY RESIDENTIAL ITS GENERAL PARTNER | |||||
Date: | May 3, 2012 | By: | /s/ Mark J. Parrell | ||
Mark J. Parrell | |||||
Executive Vice President and Chief Financial Officer | |||||
(Principal Financial Officer) | |||||
Date: | May 3, 2012 | By: | /s/ Ian S. Kaufman | ||
Ian S. Kaufman | |||||
Senior Vice President and Chief Accounting Officer | |||||
(Principal Accounting Officer) |
Exhibit | Description | Location | ||
10.1 | Second Amendment to Other Interest Agreement, dated April 18, 2012, by and among ERP Operating Limited Partnership, BIH ASN LLC, Archstone Equity Holdings Inc., Bank of America, N.A. and Banc of America Strategic Ventures, Inc. | Included as Exhibit 10.1 to Equity Residential's and ERP Operating Limited Partnership's Form 8-K dated April 18, 2012, filed on April 19, 2012. | ||
31.1 | Equity Residential – Certification of David J. Neithercut, Chief Executive Officer. | Attached herein. | ||
31.2 | Equity Residential – Certification of Mark J. Parrell, Chief Financial Officer. | Attached herein. | ||
31.3 | ERP Operating Limited Partnership – Certification of David J. Neithercut, Chief Executive Officer of Registrant’s General Partner. | Attached herein. | ||
31.4 | ERP Operating Limited Partnership – Certification of Mark J. Parrell, Chief Financial Officer of Registrant’s General Partner. | Attached herein. | ||
32.1 | Equity Residential – Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of David J. Neithercut, Chief Executive Officer of the Company. | Attached herein. | ||
32.2 | Equity Residential – Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Mark J. Parrell, Chief Financial Officer of the Company. | Attached herein. | ||
32.3 | ERP Operating Limited Partnership – Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of David J. Neithercut, Chief Executive Officer of Registrant’s General Partner. | Attached herein. | ||
32.4 | ERP Operating Limited Partnership – Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Mark J. Parrell, Chief Financial Officer of Registrant’s General Partner. | Attached herein. | ||
101 | XBRL (Extensible Business Reporting Language). The following materials from Equity Residential’s and ERP Operating Limited Partnership’s Quarterly Report on Form 10-Q for the period ended March 31, 2012, formatted in XBRL: (i) consolidated balance sheets, (ii) consolidated statements of operations, (iii) consolidated statements of cash flows, (iv) consolidated statement of changes in equity (Equity Residential), (v) consolidated statement of changes in capital (ERP Operating Limited Partnership) and (vi) notes to consolidated financial statements. | Attached herein. |
1. | I have reviewed this quarterly report on Form 10-Q of Equity Residential; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ David J. Neithercut | |
David J. Neithercut | |
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Equity Residential; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Mark J. Parrell | |
Mark J. Parrell | |
Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q of ERP Operating Limited Partnership; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ David J. Neithercut | |
David J. Neithercut Chief Executive Officer of Registrant's General Partner | |
1. | I have reviewed this quarterly report on Form 10-Q of ERP Operating Limited Partnership; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Mark J. Parrell | |
Mark J. Parrell Chief Financial Officer of Registrant's General Partner | |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ David J. Neithercut |
David J. Neithercut |
Chief Executive Officer |
May 3, 2012 |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Mark J. Parrell |
Mark J. Parrell |
Chief Financial Officer |
May 3, 2012 |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Operating Partnership. |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Operating Partnership. |
/($.*'$FRI,F3*%.J7,FRI
Summary of Significant Accounting Policies Summary of Significant Accounting Policies Text (Details) (USD $)
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Aug. 18, 2011
|
Aug. 23, 2006
|
---|---|---|---|---|
Deferred Tax Assets, Gross | $ 31,700,000 | |||
Partially Owned Consolidated Properties | 21 | |||
Partially Owned Consolidated Units | 3,916 | |||
Noncontrolling Interests - Partially Owned Properties | 73,915,000 | 74,306,000 | ||
Partially Owned Limited Life Partnership Properties | 6 | |||
Noncontrolling Interest Balance Limited Life Partnerships | (4,700,000) | |||
Noncontrolling Interests Settlement Value | 36,100,000 | |||
Convertible Debt | 482,500,000 | 650,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | |||
Partially Owned Properties [Member]
|
||||
Noncontrolling Interests - Partially Owned Properties | $ 73,915,000 |
Derivative and Other Fair Value Instruments (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2012
|
---|---|
Fair Value Hedges [Member]
|
|
Derivative [Line Items] | |
Current Notional Balance | $ 315,693 |
Lowest Possible Notional | 315,693 |
Highest Possible Notional | 317,694 |
Lowest Interest Rate | 2.009% |
Highest Interest Rate | 4.80% |
Earliest Maturity Date | 2012 |
Latest Maturity Date | 2013 |
Forward Starting Swaps [Member]
|
|
Derivative [Line Items] | |
Current Notional Balance | 200,000 |
Lowest Possible Notional | 200,000 |
Highest Possible Notional | $ 200,000 |
Lowest Interest Rate | 3.478% |
Highest Interest Rate | 4.695% |
Earliest Maturity Date | 2023 |
Latest Maturity Date | 2023 |
Commitments to Acquire/Dispose of Real Estate (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2012
|
---|---|
Commitments to Acquire Real Estate | |
Properties Acquired-Total | 0 |
Land Parcels Contracted to be Acquired | 4 |
Rental Units Acquired - Total | 0 |
Purchase Price - Total | $ 73,500 |
Commitments to Dispose of Real Estate | |
Properties Disposed - Total | 3 |
Rental Units Disposed-Total | 699 |
Sales price-Rental Properties | 54,100 |
Land Parcel [Member]
|
|
Commitments to Acquire Real Estate | |
Land Parcels Contracted to be Acquired | 0 |
Rental Units Acquired - Total | 0 |
Purchase Price - Total | 73,500 |
Rental Properties Disposed of [Member]
|
|
Commitments to Dispose of Real Estate | |
Properties Disposed - Total | 3 |
Rental Units Disposed-Total | 699 |
Sales price-Rental Properties | $ 54,100 |
Real Estate Real Estate Acquisitions (Details) (USD $)
|
3 Months Ended |
---|---|
Mar. 31, 2012
|
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Acquired Properties | 3 |
Units - acquired | 544 |
Business Acquisition, Cost of Acquired Entity, Purchase Price | $ 182,840,000 |
Consolidated Rental Properties [Member]
|
|
Acquired Properties | 3 |
Units - acquired | 544 |
Business Acquisition, Cost of Acquired Entity, Purchase Price | 159,100,000 |
Land Parcel [Member]
|
|
Acquired Properties | 0 |
Land parcels acquired | 2 |
Units - acquired | 0 |
Business Acquisition, Cost of Acquired Entity, Purchase Price | $ 23,740,000 |
Deposits - Restricted Deposits - Restricted Summary (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2012
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Deposits Restricted (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Cash and Cash Equivalents [Table Text Block] |
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Reportable Segments
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Mar. 31, 2012
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Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | Reportable Segments Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by senior management. Senior management decides how resources are allocated and assesses performance on a monthly basis. The Company’s primary business is the acquisition, development and management of multifamily residential properties, which includes the generation of rental and other related income through the leasing of apartment units to residents. Senior management evaluates the performance of each of our apartment communities individually and geographically, and both on a same store and non-same store basis; however, each of our apartment communities generally has similar economic characteristics, residents, products and services. The Company’s operating segments have been aggregated by geography in a manner identical to that which is provided to its chief operating decision maker. The Company’s fee and asset management, development (including its partially owned properties) and condominium conversion activities are immaterial and do not individually meet the threshold requirements of a reportable segment and as such, have been aggregated in the “Other” segment in the tables presented below. All revenues are from external customers and there is no customer who contributed 10% or more of the Company’s total revenues during the quarters ended March 31, 2012 and 2011, respectively. The primary financial measure for the Company’s rental real estate segment is net operating income (“NOI”), which represents rental income less: 1) property and maintenance expense; 2) real estate taxes and insurance expense; and 3) property management expense (all as reflected in the accompanying consolidated statements of operations). The Company believes that NOI is helpful to investors as a supplemental measure of its operating performance because it is a direct measure of the actual operating results of the Company’s apartment communities. Current year NOI is compared to prior year NOI and current year budgeted NOI as a measure of financial performance. The following tables present NOI for each segment from our rental real estate specific to continuing operations for the quarters ended March 31, 2012 and 2011, respectively, as well as total assets and capital expenditures at March 31, 2012 (amounts in thousands):
Note: Markets included in the above geographic segments are as follows:
The following table presents a reconciliation of NOI from our rental real estate specific to continuing operations for the quarters ended March 31, 2012 and 2011, respectively (amounts in thousands):
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Deposits - Restricted Deposits - Restricted Values (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2012
|
Dec. 31, 2011
|
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Restricted Cash and Cash Equivalents Items [Line Items] | ||
Tax Deferred Exchange Proceeds | $ 79,145 | $ 53,668 |
Earnest Money On Acquisitions | 10,175 | 7,882 |
Restricted Deposits On Debt | 2,161 | 2,370 |
Restricted deposits on real estate investments | 43,586 | 43,970 |
Resident security and utility deposits | 43,029 | 40,403 |
Other Restricted Cash | 4,086 | 3,944 |
Restricted Cash and Cash Equivalents | $ 182,182 | $ 152,237 |
Reportable Segments (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2012
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Reportable Segments (Tables) [Abstracts] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Segments Schedule |
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Reconciliation of NOI |
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Debt Notes (Details) (USD $)
|
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
Dec. 31, 2011
|
|
Debt Instrument [Line Items] | |||
Notes Payable | $ 5,355,590,000 | $ 5,609,574,000 | |
Repayments of Notes Payable | 253,858,000 | 93,096,000 | |
Stated interest rate | 6.625% | ||
Term Loan Principal Amount | 500,000,000 | ||
Term Loan Facility Spread | 1.25% | ||
Bridge Loan Principal Amount | $ 1,000,000,000 | ||
Debt Instrument, Maturity Date Range, End | 2026 | ||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 0.09% | ||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 11.25% | ||
Weighted Average Interest Rate | 5.14% | ||
Fixed Rate Public or Private Notes [Member]
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|||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 0.74% | ||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 7.57% |
Real Estate Real Estate Dispositions (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
|
Disposed Properties | 3 | |
Disposed Units | 1,522 | |
Proceeds From Sale Of Property | $ 206,350 | |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 132,956 | 123,754 |
Consolidated Rental Properties [Member]
|
||
Disposed Properties | 3 | |
Disposed Units | 1,522 | |
Proceeds From Sale Of Property | $ 206,350 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
|
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 152,167 | $ 133,066 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 175,108 | 169,363 |
Amortization of deferred financing costs | 2,974 | 3,074 |
Amortization of discounts and premiums on debt | (1,567) | 373 |
Amortization of deferred settlements on derivative instruments | 3,429 | 822 |
Write-off of pursuit costs | 1,034 | 1,683 |
Distributions from unconsolidated entities - return on capital | 89 | 41 |
Net (gain) on sales of discontinued operations | (132,956) | (123,754) |
Unrealized (gain) on derivative instruments | (1) | 0 |
Compensation paid with Company Common Shares | 8,968 | 6,524 |
Changes in assets and liabilities: | ||
(Increase) decrease in deposits - restricted | (2,768) | 1,557 |
Decrease in other assets | 12,262 | 5,771 |
Increase in accounts payable and accrued expenses | 41,616 | 44,531 |
(Decrease) in accrued interest payable | (8,632) | (26,659) |
(Decrease) in other liabilities | (16,878) | (28,836) |
Increase (decrease) in security deposits | 182 | (28) |
Net cash provided by operating activities | 235,027 | 187,528 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Investment in real estate - acquisitions | (183,112) | (123,868) |
Investment in real estate - development/other | (35,876) | (29,840) |
Improvements to real estate | (30,225) | (29,891) |
Additions to non-real estate property | (2,229) | (2,677) |
Interest capitalized for real estate and unconsolidated entities under development | (4,996) | (1,700) |
Proceeds from disposition of real estate, net | 204,272 | 258,212 |
Investments in unconsolidated entities | (2,396) | (366) |
(Increase) in deposits on real estate acquisitions and investments, net | (27,386) | (107,878) |
(Increase) decrease in mortgage deposits | (736) | 506 |
Acquisition of Noncontrolling Interests - Partially Owned Properties | 0 | (504) |
Net cash (used for) investing activities | (82,684) | (38,006) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Loan and bond acquisition costs | (4,227) | (223) |
Mortgage notes payable: | ||
Proceeds | 0 | 707 |
Restricted cash | 209 | (22,297) |
Lump sum payoffs | (47,800) | (200,733) |
Scheduled principal repayments | (3,970) | (4,223) |
Notes, net: | ||
Lump sum payoffs | (253,858) | (93,096) |
Proceeds from sale of Common Shares | 152,058 | 154,508 |
Proceeds from Employee Stock Purchase Plan | 4,210 | 2,742 |
Proceeds from exercise of options | 18,938 | 32,719 |
Payment of offering costs | (1,887) | (2,352) |
Contributions - Noncontrolling Interests - Partially Owned Properties | 921 | 0 |
Contributions - Noncontrolling Interests - Operating Partnership | 5 | 0 |
Distributions: | ||
Common Shares | (168,350) | (132,655) |
Preferred Shares | (3,466) | (3,466) |
Noncontrolling Interests – Operating Partnership | (7,657) | (6,225) |
Noncontrolling Interests – Partially Owned Properties | (1,762) | (264) |
Net cash (used for) financing activities | (316,636) | (274,858) |
Net (decrease) in cash and cash equivalents | (164,293) | (125,336) |
Cash and cash equivalents, beginning of period | 383,921 | 431,408 |
Cash and cash equivalents, end of period | 219,628 | 306,072 |
SUPPLEMENTAL INFORMATION: | ||
Cash paid for interest, net of amounts capitalized | 125,435 | 146,514 |
Net cash paid for income and other taxes | 560 | 341 |
Real estate acquisitions/dispositions/other: | ||
Mortgage loans assumed | 0 | 26,900 |
Amortization of discounts and premiums on debt: | ||
Mortgage notes payable | (2,153) | (1,858) |
Notes, net | 586 | 2,231 |
Amortization of deferred settlements on derivative instruments: | ||
Other liabilities | (134) | (134) |
Losses reclassified into earnings from other comprehensive income | 3,563 | 956 |
Unrealized loss (gain) on derivative instruments: | ||
Other assets | 1,300 | 810 |
Mortgage notes payable | (588) | (144) |
Notes, net | (712) | (1,348) |
Other liabilities | (3,219) | (5,400) |
Accumulated other comprehensive income | 3,218 | 6,082 |
Interest capitalized for real estate and unconsolidated entities under development: | ||
Investment in real estate, net | (4,827) | (1,659) |
Investment in unconsolidated entities | (169) | (41) |
Other: | ||
Receivable For Common Shares Issued | $ 28,457 | $ 0 |
Commitments and Contingencies (Details) (USD $)
|
3 Months Ended | |
---|---|---|
Mar. 31, 2012
|
Dec. 31, 2011
|
|
300 properties designed and built in violation of accessibility requirements | 300 | |
Projects in various stages of development | 6 | |
Units in various stages of development | 1,535 | |
Consolidated Project Under Development Commitment Fund | $ 325,800,000 | |
Various stages of development with estimated completion dates ranging through June 30, 2011 | Mar. 31, 2014 | |
Number Of Unconsolidated Projects | 2 | |
Number Of Apartments Units Under Development Unconsolidated Projects | 945 | |
Unconsolidated Project Under Development Commitment Fund | 3,000,000 | |
Estimated completion period of project | Dec. 31, 2013 | |
Land purchase price | 76,100,000 | |
Business Acquisition, Cost of Acquired Entity, Purchase Price | 182,840,000 | |
Investment in Joint Venture | 186,300,000 | |
Noncontrolling Interests - Partially Owned Properties | 73,915,000 | 74,306,000 |
Joint Venture Partner [Member]
|
||
Land purchase price | 57,900,000 | |
Business Acquisition, Cost of Acquired Entity, Purchase Price | 75,700,000 | |
Noncontrolling Interests - Partially Owned Properties | 76,705,068 | |
Company's Portion [Member]
|
||
Business Acquisition, Cost of Acquired Entity, Purchase Price | $ 102,500,000 |