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. |
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September 30, 2012 | December 31, 2011 | |||||||
ASSETS | ||||||||
Investment in real estate | ||||||||
Land | $ | 4,609,337 | $ | 4,367,816 | ||||
Depreciable property | 15,943,139 | 15,554,740 | ||||||
Projects under development | 194,254 | 160,190 | ||||||
Land held for development | 404,846 | 325,200 | ||||||
Investment in real estate | 21,151,576 | 20,407,946 | ||||||
Accumulated depreciation | (4,880,808 | ) | (4,539,583 | ) | ||||
Investment in real estate, net | 16,270,768 | 15,868,363 | ||||||
Cash and cash equivalents | 45,623 | 383,921 | ||||||
Investments in unconsolidated entities | 17,906 | 12,327 | ||||||
Deposits – restricted | 120,440 | 152,237 | ||||||
Escrow deposits – mortgage | 10,462 | 10,692 | ||||||
Deferred financing costs, net | 38,823 | 44,608 | ||||||
Other assets | 164,523 | 187,155 | ||||||
Total assets | $ | 16,668,545 | $ | 16,659,303 | ||||
LIABILITIES AND EQUITY | ||||||||
Liabilities: | ||||||||
Mortgage notes payable | $ | 3,948,115 | $ | 4,111,487 | ||||
Notes, net | 5,354,038 | 5,609,574 | ||||||
Lines of credit | 7,000 | — | ||||||
Accounts payable and accrued expenses | 105,602 | 35,206 | ||||||
Accrued interest payable | 78,869 | 88,121 | ||||||
Other liabilities | 370,046 | 291,289 | ||||||
Security deposits | 68,758 | 65,286 | ||||||
Distributions payable | 108,048 | 179,079 | ||||||
Total liabilities | 10,040,476 | 10,380,042 | ||||||
Commitments and contingencies | ||||||||
Redeemable Noncontrolling Interests – Operating Partnership | 414,219 | 416,404 | ||||||
Equity: | ||||||||
Shareholders’ equity: | ||||||||
Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized; 1,000,000 shares issued and outstanding as of September 30, 2012 and 1,600,000 shares issued and outstanding as of December 31, 2011 | 50,000 | 200,000 | ||||||
Common Shares of beneficial interest, $0.01 par value; 1,000,000,000 shares authorized; 302,674,716 shares issued and outstanding as of September 30, 2012 and 297,508,185 shares issued and outstanding as of December 31, 2011 | 3,027 | 2,975 | ||||||
Paid in capital | 5,364,802 | 5,047,186 | ||||||
Retained earnings | 770,697 | 615,572 | ||||||
Accumulated other comprehensive (loss) | (197,754 | ) | (196,718 | ) | ||||
Total shareholders’ equity | 5,990,772 | 5,669,015 | ||||||
Noncontrolling Interests: | ||||||||
Operating Partnership | 147,650 | 119,536 | ||||||
Partially Owned Properties | 75,428 | 74,306 | ||||||
Total Noncontrolling Interests | 223,078 | 193,842 | ||||||
Total equity | 6,213,850 | 5,862,857 | ||||||
Total liabilities and equity | $ | 16,668,545 | $ | 16,659,303 |
Nine Months Ended September 30, | Quarter Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
REVENUES | ||||||||||||||||
Rental income | $ | 1,602,635 | $ | 1,417,136 | $ | 553,092 | $ | 490,944 | ||||||||
Fee and asset management | 7,328 | 6,682 | 3,052 | 2,928 | ||||||||||||
Total revenues | 1,609,963 | 1,423,818 | 556,144 | 493,872 | ||||||||||||
EXPENSES | ||||||||||||||||
Property and maintenance | 325,071 | 300,362 | 110,679 | 101,712 | ||||||||||||
Real estate taxes and insurance | 182,222 | 162,430 | 64,235 | 57,109 | ||||||||||||
Property management | 62,769 | 62,191 | 18,493 | 19,175 | ||||||||||||
Fee and asset management | 3,595 | 3,207 | 1,108 | 1,250 | ||||||||||||
Depreciation | 509,338 | 467,416 | 167,406 | 159,691 | ||||||||||||
General and administrative | 37,178 | 32,462 | 10,096 | 10,121 | ||||||||||||
Total expenses | 1,120,173 | 1,028,068 | 372,017 | 349,058 | ||||||||||||
Operating income | 489,790 | 395,750 | 184,127 | 144,814 | ||||||||||||
Interest and other income | 70,516 | 6,598 | 70,087 | 5,313 | ||||||||||||
Other expenses | (20,678 | ) | (9,318 | ) | (4,094 | ) | (2,528 | ) | ||||||||
Interest: | ||||||||||||||||
Expense incurred, net | (347,452 | ) | (350,957 | ) | (113,876 | ) | (112,449 | ) | ||||||||
Amortization of deferred financing costs | (10,319 | ) | (11,900 | ) | (3,338 | ) | (4,650 | ) | ||||||||
Income before income and other taxes, (loss) from investments in unconsolidated entities, net gain on sales of land parcels and discontinued operations | 181,857 | 30,173 | 132,906 | 30,500 | ||||||||||||
Income and other tax (expense) benefit | (627 | ) | (669 | ) | (222 | ) | (283 | ) | ||||||||
(Loss) from investments in unconsolidated entities | (3 | ) | — | (3 | ) | — | ||||||||||
Net gain on sales of land parcels | — | 4,217 | — | — | ||||||||||||
Income from continuing operations | 181,227 | 33,721 | 132,681 | 30,217 | ||||||||||||
Discontinued operations, net | 315,578 | 794,075 | 103,642 | 82,760 | ||||||||||||
Net income | 496,805 | 827,796 | 236,323 | 112,977 | ||||||||||||
Net (income) loss attributable to Noncontrolling Interests: | ||||||||||||||||
Operating Partnership | (21,646 | ) | (36,275 | ) | (10,496 | ) | (4,742 | ) | ||||||||
Partially Owned Properties | (457 | ) | (418 | ) | 312 | (387 | ) | |||||||||
Net income attributable to controlling interests | 474,702 | 791,103 | 226,139 | 107,848 | ||||||||||||
Preferred distributions | (9,319 | ) | (10,399 | ) | (2,386 | ) | (3,466 | ) | ||||||||
Premium on redemption of Preferred Shares | (5,150 | ) | — | (5,150 | ) | — | ||||||||||
Net income available to Common Shares | $ | 460,233 | $ | 780,704 | $ | 218,603 | $ | 104,382 | ||||||||
Earnings per share – basic: | ||||||||||||||||
Income from continuing operations available to Common Shares | $ | 0.53 | $ | 0.07 | $ | 0.40 | $ | 0.09 | ||||||||
Net income available to Common Shares | $ | 1.53 | $ | 2.65 | $ | 0.73 | $ | 0.35 | ||||||||
Weighted average Common Shares outstanding | 300,116 | 294,474 | 301,336 | 295,831 | ||||||||||||
Earnings per share – diluted: | ||||||||||||||||
Income from continuing operations available to Common Shares | $ | 0.52 | $ | 0.07 | $ | 0.39 | $ | 0.08 | ||||||||
Net income available to Common Shares | $ | 1.52 | $ | 2.62 | $ | 0.72 | $ | 0.35 | ||||||||
Weighted average Common Shares outstanding | 317,265 | 311,908 | 318,773 | 312,844 | ||||||||||||
Distributions declared per Common Share outstanding | $ | 1.0125 | $ | 1.0125 | $ | 0.3375 | $ | 0.3375 |
Nine Months Ended September 30, | Quarter Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Comprehensive income: | ||||||||||||||||
Net income | $ | 496,805 | $ | 827,796 | $ | 236,323 | $ | 112,977 | ||||||||
Other comprehensive (loss) income: | ||||||||||||||||
Other comprehensive (loss) income – derivative instruments: | ||||||||||||||||
Unrealized holding (losses) arising during the period | (12,337 | ) | (130,367 | ) | (3,695 | ) | (105,248 | ) | ||||||||
Losses reclassified into earnings from other comprehensive income | 10,907 | 2,842 | 3,704 | 951 | ||||||||||||
Other comprehensive income (loss) – other instruments: | ||||||||||||||||
Unrealized holding gains (losses) arising during the period | 394 | 311 | 312 | (182 | ) | |||||||||||
Other comprehensive (loss) income | (1,036 | ) | (127,214 | ) | 321 | (104,479 | ) | |||||||||
Comprehensive income | 495,769 | 700,582 | 236,644 | 8,498 | ||||||||||||
Comprehensive (income) attributable to Noncontrolling Interests | (22,103 | ) | (36,693 | ) | (10,184 | ) | (5,129 | ) | ||||||||
Comprehensive income attributable to controlling interests | $ | 473,666 | $ | 663,889 | $ | 226,460 | $ | 3,369 |
Nine Months Ended September 30, | ||||||||
2012 | 2011 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 496,805 | $ | 827,796 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 516,940 | 496,383 | ||||||
Amortization of deferred financing costs | 10,384 | 12,769 | ||||||
Amortization of discounts and premiums on debt | (5,795 | ) | 144 | |||||
Amortization of deferred settlements on derivative instruments | 10,506 | 2,441 | ||||||
Write-off of pursuit costs | 6,141 | 4,052 | ||||||
Income from technology investments | — | (4,537 | ) | |||||
Loss from investments in unconsolidated entities | 3 | — | ||||||
Distributions from unconsolidated entities – return on capital | 454 | 318 | ||||||
Net (gain) on sales of land parcels | — | (4,217 | ) | |||||
Net (gain) on sales of discontinued operations | (307,447 | ) | (759,100 | ) | ||||
Loss on debt extinguishments | 272 | — | ||||||
Unrealized (gain) on derivative instruments | (1 | ) | — | |||||
Compensation paid with Company Common Shares | 20,836 | 16,722 | ||||||
Changes in assets and liabilities: | ||||||||
(Increase) decrease in deposits – restricted | (2,250 | ) | 5,101 | |||||
(Increase) decrease in other assets | (14,039 | ) | 3,239 | |||||
Increase in accounts payable and accrued expenses | 67,479 | 60,608 | ||||||
(Decrease) in accrued interest payable | (9,252 | ) | (28,736 | ) | ||||
Increase (decrease) in other liabilities | 68,492 | (20,193 | ) | |||||
Increase in security deposits | 3,472 | 1,261 | ||||||
Net cash provided by operating activities | 863,000 | 614,051 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Investment in real estate – acquisitions | (764,859 | ) | (634,581 | ) | ||||
Investment in real estate – development/other | (116,715 | ) | (93,761 | ) | ||||
Improvements to real estate | (114,535 | ) | (106,070 | ) | ||||
Additions to non-real estate property | (6,716 | ) | (4,879 | ) | ||||
Interest capitalized for real estate and unconsolidated entities under development | (15,776 | ) | (5,931 | ) | ||||
Proceeds from disposition of real estate, net | 610,127 | 1,402,475 | ||||||
Investments in unconsolidated entities | (5,423 | ) | (865 | ) | ||||
Proceeds from technology investments | — | 4,537 | ||||||
Decrease (increase) in deposits on real estate acquisitions and investments, net | 31,677 | (210,170 | ) | |||||
Decrease in mortgage deposits | 230 | 1,916 | ||||||
Deconsolidation of previously consolidated properties | — | 28,360 | ||||||
Acquisition of Noncontrolling Interests – Partially Owned Properties | (87 | ) | (12,809 | ) | ||||
Net cash (used for) provided by investing activities | (382,077 | ) | 368,222 |
Nine Months Ended September 30, | ||||||||
2012 | 2011 | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Loan and bond acquisition costs | $ | (4,599 | ) | $ | (8,070 | ) | ||
Mortgage notes payable: | ||||||||
Proceeds | — | 152,930 | ||||||
Restricted cash | 2,370 | 16,595 | ||||||
Lump sum payoffs | (279,943 | ) | (859,066 | ) | ||||
Scheduled principal repayments | (11,022 | ) | (12,463 | ) | ||||
Loss on debt extinguishments | (272 | ) | — | |||||
Notes, net: | ||||||||
Lump sum payoffs | (253,858 | ) | (575,641 | ) | ||||
Lines of credit: | ||||||||
Proceeds | 392,000 | 213,000 | ||||||
Repayments | (385,000 | ) | (187,000 | ) | ||||
Proceeds from sale of Common Shares | 220,753 | 154,508 | ||||||
Proceeds from Employee Share Purchase Plan (ESPP) | 4,944 | 4,558 | ||||||
Proceeds from exercise of options | 46,781 | 94,373 | ||||||
Redemption of Preferred Shares | (150,000 | ) | — | |||||
Premium on redemption of Preferred Shares | (21 | ) | — | |||||
Payment of offering costs | (2,860 | ) | (2,770 | ) | ||||
Other financing activities, net | (33 | ) | (33 | ) | ||||
Contributions – Noncontrolling Interests – Partially Owned Properties | 5,992 | 64 | ||||||
Contributions – Noncontrolling Interests – Operating Partnership | 5 | — | ||||||
Distributions: | ||||||||
Common Shares | (371,319 | ) | (331,928 | ) | ||||
Preferred Shares | (11,344 | ) | (10,399 | ) | ||||
Noncontrolling Interests – Operating Partnership | (17,053 | ) | (15,464 | ) | ||||
Noncontrolling Interests – Partially Owned Properties | (4,742 | ) | (889 | ) | ||||
Net cash (used for) financing activities | (819,221 | ) | (1,367,695 | ) | ||||
Net (decrease) in cash and cash equivalents | (338,298 | ) | (385,422 | ) | ||||
Cash and cash equivalents, beginning of period | 383,921 | 431,408 | ||||||
Cash and cash equivalents, end of period | $ | 45,623 | $ | 45,986 |
Nine Months Ended September 30, | ||||||||
2012 | 2011 | |||||||
SUPPLEMENTAL INFORMATION: | ||||||||
Cash paid for interest, net of amounts capitalized | $ | 353,329 | $ | 381,194 | ||||
Net cash paid for income and other taxes | $ | 573 | $ | 607 | ||||
Real estate acquisitions/dispositions/other: | ||||||||
Mortgage loans assumed | $ | 137,644 | $ | 99,131 | ||||
Valuation of OP Units issued | $ | 66,606 | $ | — | ||||
Amortization of discounts and premiums on debt: | ||||||||
Mortgage notes payable | $ | (7,462 | ) | $ | (6,116 | ) | ||
Notes, net | $ | 1,667 | $ | 6,260 | ||||
Amortization of deferred settlements on derivative instruments: | ||||||||
Other liabilities | $ | (401 | ) | $ | (401 | ) | ||
Accumulated other comprehensive income | $ | 10,907 | $ | 2,842 | ||||
Unrealized (gain) on derivative instruments: | ||||||||
Other assets | $ | 5,934 | $ | 5,217 | ||||
Mortgage notes payable | $ | (2,589 | ) | $ | (464 | ) | ||
Notes, net | $ | (3,345 | ) | $ | (1,476 | ) | ||
Other liabilities | $ | 12,336 | $ | 127,090 | ||||
Accumulated other comprehensive income | $ | (12,337 | ) | $ | (130,367 | ) | ||
Interest capitalized for real estate and unconsolidated entities under development: | ||||||||
Investment in real estate, net | $ | (15,163 | ) | $ | (5,760 | ) | ||
Investments in unconsolidated entities | $ | (613 | ) | $ | (171 | ) | ||
Deconsolidation of previously consolidated properties: | ||||||||
Investment in real estate, net | $ | — | $ | 35,495 | ||||
Investments in unconsolidated entities | $ | — | $ | (7,135 | ) | |||
Other: | ||||||||
Receivable on sale of Common Shares | $ | 28,457 | $ | — |
Nine Months Ended | |||
September 30, 2012 | |||
SHAREHOLDERS’ EQUITY | |||
PREFERRED SHARES | |||
Balance, beginning of year | $ | 200,000 | |
Redemption of 6.48% Series N Cumulative Redeemable | (150,000 | ) | |
Balance, end of period | $ | 50,000 | |
COMMON SHARES, $0.01 PAR VALUE | |||
Balance, beginning of year | $ | 2,975 | |
Conversion of OP Units into Common Shares | 3 | ||
Issuance of Common Shares | 32 | ||
Exercise of share options | 15 | ||
Employee Share Purchase Plan (ESPP) | 1 | ||
Share-based employee compensation expense: | |||
Restricted shares | 1 | ||
Balance, end of period | $ | 3,027 | |
PAID IN CAPITAL | |||
Balance, beginning of year | $ | 5,047,186 | |
Common Share Issuance: | |||
Conversion of OP Units into Common Shares | 8,557 | ||
Issuance of Common Shares | 192,264 | ||
Exercise of share options | 46,766 | ||
Employee Share Purchase Plan (ESPP) | 4,943 | ||
Share-based employee compensation expense: | |||
Restricted shares | 6,998 | ||
Share options | 9,854 | ||
ESPP discount | 884 | ||
Offering costs | (2,860 | ) | |
Premium on redemption of Preferred Shares – original issuance costs | 5,129 | ||
Supplemental Executive Retirement Plan (SERP) | (407 | ) | |
Acquisition of Noncontrolling Interests – Partially Owned Properties | 1,219 | ||
Change in market value of Redeemable Noncontrolling Interests – Operating Partnership | 8,866 | ||
Adjustment for Noncontrolling Interests ownership in Operating Partnership | 35,403 | ||
Balance, end of period | $ | 5,364,802 | |
RETAINED EARNINGS | |||
Balance, beginning of year | $ | 615,572 | |
Net income attributable to controlling interests | 474,702 | ||
Common Share distributions | (305,108 | ) | |
Preferred Share distributions | (9,319 | ) | |
Premium on redemption of Preferred Shares – cash charge | (21 | ) | |
Premium on redemption of Preferred Shares – original issuance costs | (5,129 | ) | |
Balance, end of period | $ | 770,697 |
Nine Months Ended | |||
September 30, 2012 | |||
SHAREHOLDERS' EQUITY (continued) | |||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) | |||
Balance, beginning of year | $ | (196,718 | ) |
Accumulated other comprehensive (loss) – derivative instruments: | |||
Unrealized holding (losses) arising during the period | (12,337 | ) | |
Losses reclassified into earnings from other comprehensive income | 10,907 | ||
Accumulated other comprehensive income – other instruments: | |||
Unrealized holding gains arising during the period | 394 | ||
Balance, end of period | $ | (197,754 | ) |
NONCONTROLLING INTERESTS | |||
OPERATING PARTNERSHIP | |||
Balance, beginning of year | $ | 119,536 | |
Issuance of OP Units to Noncontrolling Interests | 66,606 | ||
Issuance of LTIP Units to Noncontrolling Interests | 5 | ||
Conversion of OP Units held by Noncontrolling Interests into OP Units held by General Partner | (8,560 | ) | |
Equity compensation associated with Noncontrolling Interests | 4,759 | ||
Net income attributable to Noncontrolling Interests | 21,646 | ||
Distributions to Noncontrolling Interests | (14,258 | ) | |
Change in carrying value of Redeemable Noncontrolling Interests – Operating Partnership | (6,681 | ) | |
Adjustment for Noncontrolling Interests ownership in Operating Partnership | (35,403 | ) | |
Balance, end of period | $ | 147,650 | |
PARTIALLY OWNED PROPERTIES | |||
Balance, beginning of year | $ | 74,306 | |
Net income attributable to Noncontrolling Interests | 457 | ||
Contributions by Noncontrolling Interests | 5,992 | ||
Distributions to Noncontrolling Interests | (4,775 | ) | |
Acquisition of Noncontrolling Interests – Partially Owned Properties | (1,306 | ) | |
Other | 754 | ||
Balance, end of period | $ | 75,428 |
September 30, 2012 | December 31, 2011 | |||||||
ASSETS | ||||||||
Investment in real estate | ||||||||
Land | $ | 4,609,337 | $ | 4,367,816 | ||||
Depreciable property | 15,943,139 | 15,554,740 | ||||||
Projects under development | 194,254 | 160,190 | ||||||
Land held for development | 404,846 | 325,200 | ||||||
Investment in real estate | 21,151,576 | 20,407,946 | ||||||
Accumulated depreciation | (4,880,808 | ) | (4,539,583 | ) | ||||
Investment in real estate, net | 16,270,768 | 15,868,363 | ||||||
Cash and cash equivalents | 45,623 | 383,921 | ||||||
Investments in unconsolidated entities | 17,906 | 12,327 | ||||||
Deposits – restricted | 120,440 | 152,237 | ||||||
Escrow deposits – mortgage | 10,462 | 10,692 | ||||||
Deferred financing costs, net | 38,823 | 44,608 | ||||||
Other assets | 164,523 | 187,155 | ||||||
Total assets | $ | 16,668,545 | $ | 16,659,303 | ||||
LIABILITIES AND CAPITAL | ||||||||
Liabilities: | ||||||||
Mortgage notes payable | $ | 3,948,115 | $ | 4,111,487 | ||||
Notes, net | 5,354,038 | 5,609,574 | ||||||
Lines of credit | 7,000 | — | ||||||
Accounts payable and accrued expenses | 105,602 | 35,206 | ||||||
Accrued interest payable | 78,869 | 88,121 | ||||||
Other liabilities | 370,046 | 291,289 | ||||||
Security deposits | 68,758 | 65,286 | ||||||
Distributions payable | 108,048 | 179,079 | ||||||
Total liabilities | 10,040,476 | 10,380,042 | ||||||
Commitments and contingencies | ||||||||
Redeemable Limited Partners | 414,219 | 416,404 | ||||||
Capital: | ||||||||
Partners' Capital: | ||||||||
Preference Units | 50,000 | 200,000 | ||||||
General Partner | 6,138,526 | 5,665,733 | ||||||
Limited Partners | 147,650 | 119,536 | ||||||
Accumulated other comprehensive (loss) | (197,754 | ) | (196,718 | ) | ||||
Total partners' capital | 6,138,422 | 5,788,551 | ||||||
Noncontrolling Interests – Partially Owned Properties | 75,428 | 74,306 | ||||||
Total capital | 6,213,850 | 5,862,857 | ||||||
Total liabilities and capital | $ | 16,668,545 | $ | 16,659,303 |
Nine Months Ended September 30, | Quarter Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
REVENUES | ||||||||||||||||
Rental income | $ | 1,602,635 | $ | 1,417,136 | $ | 553,092 | $ | 490,944 | ||||||||
Fee and asset management | 7,328 | 6,682 | 3,052 | 2,928 | ||||||||||||
Total revenues | 1,609,963 | 1,423,818 | 556,144 | 493,872 | ||||||||||||
EXPENSES | ||||||||||||||||
Property and maintenance | 325,071 | 300,362 | 110,679 | 101,712 | ||||||||||||
Real estate taxes and insurance | 182,222 | 162,430 | 64,235 | 57,109 | ||||||||||||
Property management | 62,769 | 62,191 | 18,493 | 19,175 | ||||||||||||
Fee and asset management | 3,595 | 3,207 | 1,108 | 1,250 | ||||||||||||
Depreciation | 509,338 | 467,416 | 167,406 | 159,691 | ||||||||||||
General and administrative | 37,178 | 32,462 | 10,096 | 10,121 | ||||||||||||
Total expenses | 1,120,173 | 1,028,068 | 372,017 | 349,058 | ||||||||||||
Operating income | 489,790 | 395,750 | 184,127 | 144,814 | ||||||||||||
Interest and other income | 70,516 | 6,598 | 70,087 | 5,313 | ||||||||||||
Other expenses | (20,678 | ) | (9,318 | ) | (4,094 | ) | (2,528 | ) | ||||||||
Interest: | ||||||||||||||||
Expense incurred, net | (347,452 | ) | (350,957 | ) | (113,876 | ) | (112,449 | ) | ||||||||
Amortization of deferred financing costs | (10,319 | ) | (11,900 | ) | (3,338 | ) | (4,650 | ) | ||||||||
Income before income and other taxes, (loss) from investments in unconsolidated entities, net gain on sales of land parcels and discontinued operations | 181,857 | 30,173 | 132,906 | 30,500 | ||||||||||||
Income and other tax (expense) benefit | (627 | ) | (669 | ) | (222 | ) | (283 | ) | ||||||||
(Loss) from investments in unconsolidated entities | (3 | ) | — | (3 | ) | — | ||||||||||
Net gain on sales of land parcels | — | 4,217 | — | — | ||||||||||||
Income from continuing operations | 181,227 | 33,721 | 132,681 | 30,217 | ||||||||||||
Discontinued operations, net | 315,578 | 794,075 | 103,642 | 82,760 | ||||||||||||
Net income | 496,805 | 827,796 | 236,323 | 112,977 | ||||||||||||
Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties | (457 | ) | (418 | ) | 312 | (387 | ) | |||||||||
Net income attributable to controlling interests | $ | 496,348 | $ | 827,378 | $ | 236,635 | $ | 112,590 | ||||||||
ALLOCATION OF NET INCOME: | ||||||||||||||||
Preference Units | $ | 9,319 | $ | 10,399 | $ | 2,386 | $ | 3,466 | ||||||||
Premium on redemption of Preference Units | $ | 5,150 | $ | — | $ | 5,150 | $ | — | ||||||||
General Partner | $ | 460,233 | $ | 780,704 | $ | 218,603 | $ | 104,382 | ||||||||
Limited Partners | 21,646 | 36,275 | 10,496 | 4,742 | ||||||||||||
Net income available to Units | $ | 481,879 | $ | 816,979 | $ | 229,099 | $ | 109,124 | ||||||||
Earnings per Unit – basic: | ||||||||||||||||
Income from continuing operations available to Units | $ | 0.53 | $ | 0.07 | $ | 0.40 | $ | 0.09 | ||||||||
Net income available to Units | $ | 1.53 | $ | 2.65 | $ | 0.73 | $ | 0.35 | ||||||||
Weighted average Units outstanding | 313,932 | 307,705 | 315,513 | 308,884 | ||||||||||||
Earnings per Unit – diluted: | ||||||||||||||||
Income from continuing operations available to Units | $ | 0.52 | $ | 0.07 | $ | 0.39 | $ | 0.08 | ||||||||
Net income available to Units | $ | 1.52 | $ | 2.62 | $ | 0.72 | $ | 0.35 | ||||||||
Weighted average Units outstanding | 317,265 | 311,908 | 318,773 | 312,844 | ||||||||||||
Distributions declared per Unit outstanding | $ | 1.0125 | $ | 1.0125 | $ | 0.3375 | $ | 0.3375 |
Nine Months Ended September 30, | Quarter Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Comprehensive income: | ||||||||||||||||
Net income | $ | 496,805 | $ | 827,796 | $ | 236,323 | $ | 112,977 | ||||||||
Other comprehensive (loss) income: | ||||||||||||||||
Other comprehensive (loss) income – derivative instruments: | ||||||||||||||||
Unrealized holding (losses) arising during the period | (12,337 | ) | (130,367 | ) | (3,695 | ) | (105,248 | ) | ||||||||
Losses reclassified into earnings from other comprehensive income | 10,907 | 2,842 | 3,704 | 951 | ||||||||||||
Other comprehensive income (loss) – other instruments: | ||||||||||||||||
Unrealized holding gains (losses) arising during the period | 394 | 311 | 312 | (182 | ) | |||||||||||
Other comprehensive (loss) income | (1,036 | ) | (127,214 | ) | 321 | (104,479 | ) | |||||||||
Comprehensive income | 495,769 | 700,582 | 236,644 | 8,498 | ||||||||||||
Comprehensive (income) loss attributable to Noncontrolling Interests – Partially Owned Properties | (457 | ) | (418 | ) | 312 | (387 | ) | |||||||||
Comprehensive income attributable to controlling interests | $ | 495,312 | $ | 700,164 | $ | 236,956 | $ | 8,111 |
Nine Months Ended September 30, | ||||||||
2012 | 2011 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 496,805 | $ | 827,796 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 516,940 | 496,383 | ||||||
Amortization of deferred financing costs | 10,384 | 12,769 | ||||||
Amortization of discounts and premiums on debt | (5,795 | ) | 144 | |||||
Amortization of deferred settlements on derivative instruments | 10,506 | 2,441 | ||||||
Write-off of pursuit costs | 6,141 | 4,052 | ||||||
Income from technology investments | — | (4,537 | ) | |||||
Loss from investments in unconsolidated entities | 3 | — | ||||||
Distributions from unconsolidated entities – return on capital | 454 | 318 | ||||||
Net (gain) on sales of land parcels | — | (4,217 | ) | |||||
Net (gain) on sales of discontinued operations | (307,447 | ) | (759,100 | ) | ||||
Loss on debt extinguishments | 272 | — | ||||||
Unrealized (gain) on derivative instruments | (1 | ) | — | |||||
Compensation paid with Company Common Shares | 20,836 | 16,722 | ||||||
Changes in assets and liabilities: | ||||||||
(Increase) decrease in deposits – restricted | (2,250 | ) | 5,101 | |||||
(Increase) decrease in other assets | (14,039 | ) | 3,239 | |||||
Increase in accounts payable and accrued expenses | 67,479 | 60,608 | ||||||
(Decrease) in accrued interest payable | (9,252 | ) | (28,736 | ) | ||||
Increase (decrease) in other liabilities | 68,492 | (20,193 | ) | |||||
Increase in security deposits | 3,472 | 1,261 | ||||||
Net cash provided by operating activities | 863,000 | 614,051 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Investment in real estate – acquisitions | (764,859 | ) | (634,581 | ) | ||||
Investment in real estate – development/other | (116,715 | ) | (93,761 | ) | ||||
Improvements to real estate | (114,535 | ) | (106,070 | ) | ||||
Additions to non-real estate property | (6,716 | ) | (4,879 | ) | ||||
Interest capitalized for real estate and unconsolidated entities under development | (15,776 | ) | (5,931 | ) | ||||
Proceeds from disposition of real estate, net | 610,127 | 1,402,475 | ||||||
Investments in unconsolidated entities | (5,423 | ) | (865 | ) | ||||
Proceeds from technology investments | — | 4,537 | ||||||
Decrease (increase) in deposits on real estate acquisitions and investments, net | 31,677 | (210,170 | ) | |||||
Decrease in mortgage deposits | 230 | 1,916 | ||||||
Deconsolidation of previously consolidated properties | — | 28,360 | ||||||
Acquisition of Noncontrolling Interests – Partially Owned Properties | (87 | ) | (12,809 | ) | ||||
Net cash (used for) provided by investing activities | (382,077 | ) | 368,222 |
Nine Months Ended September 30, | ||||||||
2012 | 2011 | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Loan and bond acquisition costs | $ | (4,599 | ) | $ | (8,070 | ) | ||
Mortgage notes payable: | ||||||||
Proceeds | — | 152,930 | ||||||
Restricted cash | 2,370 | 16,595 | ||||||
Lump sum payoffs | (279,943 | ) | (859,066 | ) | ||||
Scheduled principal repayments | (11,022 | ) | (12,463 | ) | ||||
Loss on debt extinguishments | (272 | ) | — | |||||
Notes, net: | ||||||||
Lump sum payoffs | (253,858 | ) | (575,641 | ) | ||||
Lines of credit: | ||||||||
Proceeds | 392,000 | 213,000 | ||||||
Repayments | (385,000 | ) | (187,000 | ) | ||||
Proceeds from sale of OP Units | 220,753 | 154,508 | ||||||
Proceeds from EQR's Employee Share Purchase Plan (ESPP) | 4,944 | 4,558 | ||||||
Proceeds from exercise of EQR options | 46,781 | 94,373 | ||||||
Redemption of Preference Units | (150,000 | ) | — | |||||
Premium on redemption of Preference Units | (21 | ) | — | |||||
Payment of offering costs | (2,860 | ) | (2,770 | ) | ||||
Other financing activities, net | (33 | ) | (33 | ) | ||||
Contributions – Noncontrolling Interests – Partially Owned Properties | 5,992 | 64 | ||||||
Contributions – Limited Partners | 5 | — | ||||||
Distributions: | ||||||||
OP Units – General Partner | (371,319 | ) | (331,928 | ) | ||||
Preference Units | (11,344 | ) | (10,399 | ) | ||||
OP Units – Limited Partners | (17,053 | ) | (15,464 | ) | ||||
Noncontrolling Interests – Partially Owned Properties | (4,742 | ) | (889 | ) | ||||
Net cash (used for) financing activities | (819,221 | ) | (1,367,695 | ) | ||||
Net (decrease) in cash and cash equivalents | (338,298 | ) | (385,422 | ) | ||||
Cash and cash equivalents, beginning of period | 383,921 | 431,408 | ||||||
Cash and cash equivalents, end of period | $ | 45,623 | $ | 45,986 |
Nine Months Ended September 30, | ||||||||
2012 | 2011 | |||||||
SUPPLEMENTAL INFORMATION: | ||||||||
Cash paid for interest, net of amounts capitalized | $ | 353,329 | $ | 381,194 | ||||
Net cash paid for income and other taxes | $ | 573 | $ | 607 | ||||
Real estate acquisitions/dispositions/other: | ||||||||
Mortgage loans assumed | $ | 137,644 | $ | 99,131 | ||||
Valuation of OP Units issued | $ | 66,606 | $ | — | ||||
Amortization of discounts and premiums on debt: | ||||||||
Mortgage notes payable | $ | (7,462 | ) | $ | (6,116 | ) | ||
Notes, net | $ | 1,667 | $ | 6,260 | ||||
Amortization of deferred settlements on derivative instruments: | ||||||||
Other liabilities | $ | (401 | ) | $ | (401 | ) | ||
Accumulated other comprehensive income | $ | 10,907 | $ | 2,842 | ||||
Unrealized (gain) on derivative instruments: | ||||||||
Other assets | $ | 5,934 | $ | 5,217 | ||||
Mortgage notes payable | $ | (2,589 | ) | $ | (464 | ) | ||
Notes, net | $ | (3,345 | ) | $ | (1,476 | ) | ||
Other liabilities | $ | 12,336 | $ | 127,090 | ||||
Accumulated other comprehensive income | $ | (12,337 | ) | $ | (130,367 | ) | ||
Interest capitalized for real estate and unconsolidated entities under development: | ||||||||
Investment in real estate, net | $ | (15,163 | ) | $ | (5,760 | ) | ||
Investments in unconsolidated entities | $ | (613 | ) | $ | (171 | ) | ||
Deconsolidation of previously consolidated properties: | ||||||||
Investment in real estate, net | $ | — | $ | 35,495 | ||||
Investments in unconsolidated entities | $ | — | $ | (7,135 | ) | |||
Other: | ||||||||
Receivable on sale of OP Units | $ | 28,457 | $ | — |
Nine Months Ended | |||
September 30, 2012 | |||
PARTNERS' CAPITAL | |||
PREFERENCE UNITS | |||
Balance, beginning of year | $ | 200,000 | |
Redemption of 6.48% Series N Cumulative Redeemable | (150,000 | ) | |
Balance, end of period | $ | 50,000 | |
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 | 8,560 | ||
Issuance of OP Units | 192,296 | ||
Exercise of EQR share options | 46,781 | ||
EQR's Employee Share Purchase Plan (ESPP) | 4,944 | ||
Share-based employee compensation expense: | |||
EQR restricted shares | 6,999 | ||
EQR share options | 9,854 | ||
EQR ESPP discount | 884 | ||
Offering costs | (2,860 | ) | |
Premium on redemption of Preference Units – original issuance costs | 5,129 | ||
Net income available to Units – General Partner | 460,233 | ||
OP Units – General Partner distributions | (305,108 | ) | |
Supplemental Executive Retirement Plan (SERP) | (407 | ) | |
Acquisition of Noncontrolling Interests – Partially Owned Properties | 1,219 | ||
Change in market value of Redeemable Limited Partners | 8,866 | ||
Adjustment for Limited Partners ownership in Operating Partnership | 35,403 | ||
Balance, end of period | $ | 6,138,526 | |
LIMITED PARTNERS | |||
Balance, beginning of year | $ | 119,536 | |
Issuance of OP Units to Limited Partners | 66,606 | ||
Issuance of LTIP Units to Limited Partners | 5 | ||
Conversion of OP Units held by Limited Partners into OP Units held by General Partner | (8,560 | ) | |
Equity compensation associated with Units – Limited Partners | 4,759 | ||
Net income available to Units – Limited Partners | 21,646 | ||
Units – Limited Partners distributions | (14,258 | ) | |
Change in carrying value of Redeemable Limited Partners | (6,681 | ) | |
Adjustment for Limited Partners ownership in Operating Partnership | (35,403 | ) | |
Balance, end of period | $ | 147,650 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) | |||
Balance, beginning of year | $ | (196,718 | ) |
Accumulated other comprehensive (loss) – derivative instruments: | |||
Unrealized holding (losses) arising during the period | (12,337 | ) | |
Losses reclassified into earnings from other comprehensive income | 10,907 | ||
Accumulated other comprehensive income – other instruments: | |||
Unrealized holding gains arising during the period | 394 | ||
Balance, end of period | $ | (197,754 | ) |
Nine Months Ended | |||
September 30, 2012 | |||
NONCONTROLLING INTERESTS | |||
NONCONTROLLING INTERESTS – PARTIALLY OWNED PROPERTIES | |||
Balance, beginning of year | $ | 74,306 | |
Net income attributable to Noncontrolling Interests | 457 | ||
Contributions by Noncontrolling Interests | 5,992 | ||
Distributions to Noncontrolling Interests | (4,775 | ) | |
Acquisition of Noncontrolling Interests – Partially Owned Properties | (1,306 | ) | |
Other | 754 | ||
Balance, end of period | $ | 75,428 |
1. | Business |
Properties | Apartment Units | |||||
Wholly Owned Properties | 397 | 110,520 | ||||
Partially Owned Properties – Consolidated | 19 | 3,475 | ||||
Military Housing | 2 | 4,991 | ||||
418 | 118,986 |
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 | 244,785 | |
Issuance of Common Shares | 3,173,919 | |
Exercise of share options | 1,517,880 | |
Employee Share Purchase Plan (ESPP) | 100,222 | |
Restricted share grants, net | 129,725 | |
Common Shares outstanding at September 30, | 302,674,716 | |
Units | ||
Units outstanding at January 1, | 13,492,543 | |
LTIP Units, net | 70,235 | |
OP Units issued through acquisitions | 1,081,797 | |
Conversion of OP Units to Common Shares | (244,785 | ) |
Units outstanding at September 30, | 14,399,790 | |
Total Common Shares and Units outstanding at September 30, | 317,074,506 | |
Units Ownership Interest in Operating Partnership | 4.5 | % |
2012 | |||
Balance at January 1, | $ | 416,404 | |
Change in market value | (8,866 | ) | |
Change in carrying value | 6,681 | ||
Balance at September 30, | $ | 414,219 |
Amounts in thousands | ||||||||||||||
Redemption Date (1) | Annual Dividend per Share (2) | September 30, 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 September 30, 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; 0 and 600,000 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively (3)(4) | 06/19/08 | $16.20 | — | 150,000 | ||||||||||
$ | 50,000 | $ | 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 had a corresponding depositary share that consisted of ten times the number of shares and one-tenth the liquidation value and dividend per share. |
(4) | On August 20, 2012, the Company redeemed its Series N Cumulative Redeemable Preferred Shares for cash consideration of $150.0 million plus accrued dividends through the redemption date. As a result of this redemption, the Company recorded the write-off of approximately $5.1 million in original issuance costs as a premium on the redemption of Preferred Shares. |
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 | 3,173,919 | |
Exercise of EQR share options | 1,517,880 | |
EQR’s Employee Share Purchase Plan (ESPP) | 100,222 | |
EQR's restricted share grants, net | 129,725 | |
Issued to Limited Partners: | ||
LTIP Units, net | 70,235 | |
OP Units issued through acquisitions | 1,081,797 | |
General and Limited Partner Units outstanding at September 30, | 317,074,506 | |
Limited Partner Units | ||
Limited Partner Units outstanding at January 1, | 13,492,543 | |
Limited Partner LTIP Units, net | 70,235 | |
Limited Partner OP Units issued through acquisitions | 1,081,797 | |
Conversion of Limited Partner OP Units to EQR Common Shares | (244,785 | ) |
Limited Partner Units outstanding at September 30, | 14,399,790 | |
Limited Partner Units Ownership Interest in Operating Partnership | 4.5 | % |
2012 | |||
Balance at January 1, | $ | 416,404 | |
Change in market value | (8,866 | ) | |
Change in carrying value | 6,681 | ||
Balance at September 30, | $ | 414,219 |
Amounts in thousands | ||||||||||||||
Redemption Date (1) | Annual Dividend per Unit (2) | September 30, 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 September 30, 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; 0 and 600,000 units issued and outstanding at September 30, 2012 and December 31, 2011, respectively (3)(4) | 06/19/08 | $16.20 | — | 150,000 | ||||||||||
$ | 50,000 | $ | 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 the 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 had a corresponding depositary unit that consisted of ten times the number of units and one-tenth the liquidation value and dividend per unit. |
(4) | On August 20, 2012, the Operating Partnership redeemed its Series N Cumulative Redeemable Preference Units for cash consideration of $150.0 million plus accrued dividends through the redemption date, in conjunction with the concurrent redemption of the corresponding Company Preferred Shares. As a result of this redemption, the Operating Partnership recorded the write-off of approximately $5.1 million in original issuance costs as a premium on the redemption of Preference Units. |
4. | Real Estate |
September 30, 2012 | December 31, 2011 | |||||||
Land | $ | 4,609,337 | $ | 4,367,816 | ||||
Depreciable property: | ||||||||
Buildings and improvements | 14,580,915 | 14,262,616 | ||||||
Furniture, fixtures and equipment | 1,362,224 | 1,292,124 | ||||||
Projects under development: | ||||||||
Land | 76,250 | 75,646 | ||||||
Construction-in-progress | 118,004 | 84,544 | ||||||
Land held for development: | ||||||||
Land | 350,102 | 299,096 | ||||||
Construction-in-progress | 54,744 | 26,104 | ||||||
Investment in real estate | 21,151,576 | 20,407,946 | ||||||
Accumulated depreciation | (4,880,808 | ) | (4,539,583 | ) | ||||
Investment in real estate, net | $ | 16,270,768 | $ | 15,868,363 |
Properties | Apartment Units | Purchase Price | ||||||||
Rental Properties – Consolidated | 9 | 1,896 | $ | 906,305 | ||||||
Land Parcels (five) | — | — | 62,240 | |||||||
Total | 9 | 1,896 | $ | 968,545 |
Properties | Apartment Units | Sales Price | ||||||||
Rental Properties – Consolidated | 20 | 5,337 | $ | 616,904 | ||||||
Total | 20 | 5,337 | $ | 616,904 |
5. | Commitments to Acquire/Dispose of Real Estate |
Properties | Apartment Units | Purchase Price | ||||||||
Rental Properties | 2 | 542 | $ | 192,250 | ||||||
Land Parcels (two) | — | — | 57,500 | |||||||
Total | 2 | 542 | $ | 249,750 |
Properties | Apartment Units | Sales Price | ||||||||
Rental Properties | 5 | 1,578 | $ | 141,450 | ||||||
Total | 5 | 1,578 | $ | 141,450 |
6. | Investments in Partially Owned Entities |
Consolidated | Unconsolidated | |||||||||||||||
Development Projects (VIEs) (4) | ||||||||||||||||
Held for and/or Under Development | Other | Total | Institutional Joint Ventures (5) | |||||||||||||
Total projects (1) | — | 19 | 19 | — | ||||||||||||
Total apartment units (1) | — | 3,475 | 3,475 | — | ||||||||||||
Balance sheet information at 9/30/12 (at 100%): | ||||||||||||||||
ASSETS | ||||||||||||||||
Investment in real estate | $ | 149,888 | $ | 452,473 | $ | 602,361 | $ | 143,996 | ||||||||
Accumulated depreciation | — | (155,820 | ) | (155,820 | ) | — | ||||||||||
Investment in real estate, net | 149,888 | 296,653 | 446,541 | 143,996 | ||||||||||||
Cash and cash equivalents | 5,475 | 15,641 | 21,116 | 155 | ||||||||||||
Deposits – restricted | 43,601 | 5 | 43,606 | — | ||||||||||||
Deferred financing costs, net | — | 1,055 | 1,055 | 6 | ||||||||||||
Other assets | 5,811 | 153 | 5,964 | — | ||||||||||||
Total assets | $ | 204,775 | $ | 313,507 | $ | 518,282 | $ | 144,157 | ||||||||
LIABILITIES AND EQUITY/CAPITAL | ||||||||||||||||
Mortgage notes payable | $ | — | $ | 200,337 | $ | 200,337 | $ | 50,934 | ||||||||
Accounts payable & accrued expenses | 222 | 2,273 | 2,495 | 4,995 | ||||||||||||
Accrued interest payable | — | 782 | 782 | 204 | ||||||||||||
Other liabilities | 1,269 | 1,107 | 2,376 | 117 | ||||||||||||
Security deposits | — | 1,506 | 1,506 | 1 | ||||||||||||
Total liabilities | 1,491 | 206,005 | 207,496 | 56,251 | ||||||||||||
Noncontrolling Interests – Partially Owned Properties | 82,776 | (7,348 | ) | 75,428 | 70,428 | |||||||||||
Company equity/General and Limited Partners' Capital | 120,508 | 114,850 | 235,358 | 17,478 | ||||||||||||
Total equity/capital | 203,284 | 107,502 | 310,786 | 87,906 | ||||||||||||
Total liabilities and equity/capital | $ | 204,775 | $ | 313,507 | $ | 518,282 | $ | 144,157 | ||||||||
Debt – Secured (2): | ||||||||||||||||
Company/Operating Partnership Ownership (3) | $ | — | $ | 159,068 | $ | 159,068 | $ | 10,187 | ||||||||
Noncontrolling Ownership | — | 41,269 | 41,269 | 40,747 | ||||||||||||
Total (at 100%) | $ | — | $ | 200,337 | $ | 200,337 | $ | 50,934 |
Consolidated | Unconsolidated | |||||||||||||||
Development Projects (VIEs) (4) | ||||||||||||||||
Held for and/or Under Development | Other | Total | Institutional Joint Ventures (5) | |||||||||||||
Operating information for the nine months ended 9/30/12 (at 100%): | ||||||||||||||||
Operating revenue | $ | — | $ | 46,432 | $ | 46,432 | $ | 2 | ||||||||
Operating expenses | 121 | 14,789 | 14,910 | 112 | ||||||||||||
Net operating (loss) income | (121 | ) | 31,643 | 31,522 | (110 | ) | ||||||||||
Depreciation | — | 11,516 | 11,516 | — | ||||||||||||
General and administrative/other | 93 | 39 | 132 | — | ||||||||||||
Operating (loss) income | (214 | ) | 20,088 | 19,874 | (110 | ) | ||||||||||
Interest and other income | 2 | 100 | 102 | — | ||||||||||||
Other expenses | (248 | ) | — | (248 | ) | — | ||||||||||
Interest: | ||||||||||||||||
Expense incurred, net | — | (7,040 | ) | (7,040 | ) | — | ||||||||||
Amortization of deferred financing costs | — | (125 | ) | (125 | ) | — | ||||||||||
(Loss) income before income and other taxes | (460 | ) | 13,023 | 12,563 | (110 | ) | ||||||||||
Income and other tax (expense) benefit | (25 | ) | (75 | ) | (100 | ) | — | |||||||||
Net (loss) income | $ | (485 | ) | $ | 12,948 | $ | 12,463 | $ | (110 | ) |
(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 equity ownership interest. |
(4) | A development project with a noncontrolling interest balance of $81.8 million is not a VIE. |
(5) | These development projects (Nexus Sawgrass and Domain) are owned 20% by the Company and 80% by an institutional partner in two separate unconsolidated joint ventures. Total project costs are approximately $232.8 million and construction will be predominantly funded with two separate long-term, non-recourse secured loans from the partner. The Company is responsible for constructing the projects and has given certain construction cost overrun guarantees but currently has no further funding obligations. Nexus Sawgrass has a maximum debt commitment of $47.1 million and a current unconsolidated outstanding balance of $19.1 million; the loan bears interest at 5.60% and matures January 1, 2021. Domain has a maximum debt commitment of $98.6 million and a current unconsolidated outstanding balance of $31.8 million; the loan bears interest at 5.75% and matures January 1, 2022. |
7. | Deposits – Restricted |
September 30, 2012 | December 31, 2011 | |||||||
Tax–deferred (1031) exchange proceeds | $ | 17,555 | $ | 53,668 | ||||
Earnest money on pending acquisitions | 12,087 | 7,882 | ||||||
Restricted deposits on debt | — | 2,370 | ||||||
Restricted deposits on real estate investments | 44,201 | 43,970 | ||||||
Resident security and utility deposits | 42,495 | 40,403 | ||||||
Other | 4,102 | 3,944 | ||||||
Totals | $ | 120,440 | $ | 152,237 |
8. | Debt |
▪ | Repaid $291.0 million of mortgage loans; and |
▪ | Assumed $137.6 million of mortgage debt on two acquired properties. |
▪ | 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 that could have been drawn anytime on or before July 4, 2012. The Company elected not to draw on this facility and subject to the terms of the agreement, the facility expired undrawn. The Company recorded approximately $1.0 million of write-offs of unamortized deferred financing costs at termination. |
9. | Derivative and Other Fair Value Instruments |
Fair Value Hedges (1) | Forward Starting Swaps (2) | |||||||
Current Notional Balance | $ | 300,000 | $ | 200,000 | ||||
Lowest Possible Notional | $ | 300,000 | $ | 200,000 | ||||
Highest Possible Notional | $ | 300,000 | $ | 200,000 | ||||
Lowest Interest Rate | 2.009 | % | 3.478 | % | ||||
Highest Interest Rate | 2.637 | % | 4.695 | % | ||||
Earliest Maturity Date | 2013 | 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 | 9/30/2012 | 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 | $ | 3,038 | $ | — | $ | 3,038 | $ | — | |||||||||
Supplemental Executive Retirement Plan | Other Assets | 69,369 | 69,369 | — | — | |||||||||||||
Available-for-Sale Investment Securities | Other Assets | 1,944 | 1,944 | — | — | |||||||||||||
Total | $ | 74,351 | $ | 71,313 | $ | 3,038 | $ | — | ||||||||||
Liabilities | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Interest Rate Contracts: | ||||||||||||||||||
Forward Starting Swaps | Other Liabilities | $ | 44,615 | $ | — | $ | 44,615 | $ | — | |||||||||
Supplemental Executive Retirement Plan | Other Liabilities | 69,369 | 69,369 | — | — | |||||||||||||
Total | $ | 113,984 | $ | 69,369 | $ | 44,615 | $ | — | ||||||||||
Redeemable Noncontrolling Interests – | ||||||||||||||||||
Operating Partnership/Redeemable | ||||||||||||||||||
Limited Partners | Mezzanine | $ | 414,219 | $ | — | $ | 414,219 | $ | — |
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 | $ | — |
September 30, 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 | $ | (5,934 | ) | Fixed rate debt | Interest expense | $ | 5,934 | ||||||
Total | $ | (5,934 | ) | $ | 5,934 |
September 30, 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 | $ | (1,940 | ) | Fixed rate debt | Interest expense | $ | 1,940 | ||||||
Total | $ | (1,940 | ) | $ | 1,940 |
Effective Portion | Ineffective Portion | |||||||||||||||
September 30, 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 | $ | (12,337 | ) | Interest expense | $ | (10,907 | ) | N/A | $ | — | ||||||
Total | $ | (12,337 | ) | $ | (10,907 | ) | $ | — |
Effective Portion | Ineffective Portion | |||||||||||||||
September 30, 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 | $ | (131,689 | ) | Interest expense | $ | (2,842 | ) | N/A | $ | — | ||||||
Development Interest Rate Swaps/Caps | 1,322 | Interest expense | — | N/A | — | |||||||||||
Total | $ | (130,367 | ) | $ | (2,842 | ) | $ | — |
Other Assets | ||||||||||||||||||||||
September 30, 2012 Security | Maturity | Amortized Cost | Unrealized Gains | Unrealized Losses | Book/ Fair Value | Interest and Other Income | ||||||||||||||||
Available-for-Sale Investment Securities | N/A | $ | 675 | $ | 1,269 | $ | — | $ | 1,944 | $ | — | |||||||||||
Total | $ | 675 | $ | 1,269 | $ | — | $ | 1,944 | $ | — |
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 |
Nine Months Ended September 30, | Quarter Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Numerator for net income per share – basic: | ||||||||||||||||
Income from continuing operations | $ | 181,227 | $ | 33,721 | $ | 132,681 | $ | 30,217 | ||||||||
Allocation to Noncontrolling Interests – Operating Partnership, net | (7,477 | ) | (1,018 | ) | (5,750 | ) | (1,142 | ) | ||||||||
Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties | (457 | ) | (418 | ) | 312 | (387 | ) | |||||||||
Preferred distributions | (9,319 | ) | (10,399 | ) | (2,386 | ) | (3,466 | ) | ||||||||
Premium on redemption of Preferred Shares | (5,150 | ) | — | (5,150 | ) | — | ||||||||||
Income from continuing operations available to Common Shares, net of Noncontrolling Interests | 158,824 | 21,886 | 119,707 | 25,222 | ||||||||||||
Discontinued operations, net of Noncontrolling Interests | 301,409 | 758,818 | 98,896 | 79,160 | ||||||||||||
Numerator for net income per share – basic | $ | 460,233 | $ | 780,704 | $ | 218,603 | $ | 104,382 | ||||||||
Numerator for net income per share – diluted: | ||||||||||||||||
Income from continuing operations | $ | 181,227 | $ | 33,721 | $ | 132,681 | $ | 30,217 | ||||||||
Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties | (457 | ) | (418 | ) | 312 | (387 | ) | |||||||||
Preferred distributions | (9,319 | ) | (10,399 | ) | (2,386 | ) | (3,466 | ) | ||||||||
Premium on redemption of Preferred Shares | (5,150 | ) | — | (5,150 | ) | — | ||||||||||
Income from continuing operations available to Common Shares | 166,301 | 22,904 | 125,457 | 26,364 | ||||||||||||
Discontinued operations, net | 315,578 | 794,075 | 103,642 | 82,760 | ||||||||||||
Numerator for net income per share – diluted | $ | 481,879 | $ | 816,979 | $ | 229,099 | $ | 109,124 | ||||||||
Denominator for net income per share – basic and diluted: | ||||||||||||||||
Denominator for net income per share – basic | 300,116 | 294,474 | 301,336 | 295,831 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
OP Units | 13,816 | 13,231 | 14,177 | 13,053 | ||||||||||||
Long-term compensation shares/units | 3,333 | 4,203 | 3,260 | 3,960 | ||||||||||||
Denominator for net income per share – diluted | 317,265 | 311,908 | 318,773 | 312,844 | ||||||||||||
Net income per share – basic | $ | 1.53 | $ | 2.65 | $ | 0.73 | $ | 0.35 | ||||||||
Net income per share – diluted | $ | 1.52 | $ | 2.62 | $ | 0.72 | $ | 0.35 | ||||||||
Net income per share – basic: | ||||||||||||||||
Income from continuing operations available to Common Shares, net of Noncontrolling Interests | $ | 0.529 | $ | 0.074 | $ | 0.397 | $ | 0.085 | ||||||||
Discontinued operations, net of Noncontrolling Interests | 1.005 | 2.577 | 0.328 | 0.268 | ||||||||||||
Net income per share – basic | $ | 1.534 | $ | 2.651 | $ | 0.725 | $ | 0.353 | ||||||||
Net income per share – diluted: | ||||||||||||||||
Income from continuing operations available to Common Shares | $ | 0.524 | $ | 0.073 | $ | 0.394 | $ | 0.084 | ||||||||
Discontinued operations, net | 0.995 | 2.546 | 0.325 | 0.265 | ||||||||||||
Net income per share – diluted | $ | 1.519 | $ | 2.619 | $ | 0.719 | $ | 0.349 |
Nine Months Ended September 30, | Quarter Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Numerator for net income per Unit – basic and diluted: | ||||||||||||||||
Income from continuing operations | $ | 181,227 | $ | 33,721 | $ | 132,681 | $ | 30,217 | ||||||||
Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties | (457 | ) | (418 | ) | 312 | (387 | ) | |||||||||
Allocation to Preference Units | (9,319 | ) | (10,399 | ) | (2,386 | ) | (3,466 | ) | ||||||||
Allocation to premium on redemption of Preference Units | (5,150 | ) | — | (5,150 | ) | — | ||||||||||
Income from continuing operations available to Units | 166,301 | 22,904 | 125,457 | 26,364 | ||||||||||||
Discontinued operations, net | 315,578 | 794,075 | 103,642 | 82,760 | ||||||||||||
Numerator for net income per Unit – basic and diluted | $ | 481,879 | $ | 816,979 | $ | 229,099 | $ | 109,124 | ||||||||
Denominator for net income per Unit – basic and diluted: | ||||||||||||||||
Denominator for net income per Unit - basic | 313,932 | 307,705 | 315,513 | 308,884 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Dilution for Units issuable upon assumed exercise/vesting of the Company's long-term compensation shares/units | 3,333 | 4,203 | 3,260 | 3,960 | ||||||||||||
Denominator for net income per Unit – diluted | 317,265 | 311,908 | 318,773 | 312,844 | ||||||||||||
Net income per Unit – basic | $ | 1.53 | $ | 2.65 | $ | 0.73 | $ | 0.35 | ||||||||
Net income per Unit – diluted | $ | 1.52 | $ | 2.62 | $ | 0.72 | $ | 0.35 | ||||||||
Net income per Unit – basic: | ||||||||||||||||
Income from continuing operations available to Units | $ | 0.529 | $ | 0.074 | $ | 0.397 | $ | 0.085 | ||||||||
Discontinued operations, net | 1.005 | 2.577 | 0.328 | 0.268 | ||||||||||||
Net income per Unit – basic | $ | 1.534 | $ | 2.651 | $ | 0.725 | $ | 0.353 | ||||||||
Net income per Unit – diluted: | ||||||||||||||||
Income from continuing operations available to Units | $ | 0.524 | $ | 0.073 | $ | 0.394 | $ | 0.084 | ||||||||
Discontinued operations, net | 0.995 | 2.546 | 0.325 | 0.265 | ||||||||||||
Net income per Unit – diluted | $ | 1.519 | $ | 2.619 | $ | 0.719 | $ | 0.349 |
11. | Discontinued Operations |
Nine Months Ended September 30, | Quarter Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
REVENUES | ||||||||||||||||
Rental income | $ | 27,764 | $ | 140,541 | $ | 4,014 | $ | 21,850 | ||||||||
Total revenues | 27,764 | 140,541 | 4,014 | 21,850 | ||||||||||||
EXPENSES (1) | ||||||||||||||||
Property and maintenance | 8,420 | 60,583 | 1,611 | 7,125 | ||||||||||||
Real estate taxes and insurance | 2,010 | 10,995 | 309 | 2,125 | ||||||||||||
Property management | 211 | 198 | 70 | 66 | ||||||||||||
Depreciation | 7,602 | 28,967 | 1,428 | 5,762 | ||||||||||||
General and administrative | 71 | 49 | 31 | 2 | ||||||||||||
Total expenses | 18,314 | 100,792 | 3,449 | 15,080 | ||||||||||||
Discontinued operating income | 9,450 | 39,749 | 565 | 6,770 | ||||||||||||
Interest and other income | 79 | 150 | 34 | 46 | ||||||||||||
Interest (2): | ||||||||||||||||
Expense incurred, net | (1,381 | ) | (4,086 | ) | (341 | ) | (942 | ) | ||||||||
Amortization of deferred financing costs | (65 | ) | (869 | ) | (9 | ) | (71 | ) | ||||||||
Income and other tax (expense) benefit | 48 | 31 | (1 | ) | 93 | |||||||||||
Discontinued operations | 8,131 | 34,975 | 248 | 5,896 | ||||||||||||
Net gain on sales of discontinued operations | 307,447 | 759,100 | 103,394 | 76,864 | ||||||||||||
Discontinued operations, net | $ | 315,578 | $ | 794,075 | $ | 103,642 | $ | 82,760 |
(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 |
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
Northeast | Northwest | Southeast | Southwest | Other (3) | Total | |||||||||||||||||||
Rental income: | ||||||||||||||||||||||||
Same store (1) | $ | 530,972 | $ | 295,518 | $ | 264,709 | $ | 337,232 | $ | — | $ | 1,428,431 | ||||||||||||
Non-same store/other (2) (3) | 76,922 | 37,945 | 14,667 | 44,834 | (164 | ) | 174,204 | |||||||||||||||||
Total rental income | 607,894 | 333,463 | 279,376 | 382,066 | (164 | ) | 1,602,635 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Same store (1) | 190,952 | 100,384 | 103,333 | 110,847 | — | 505,516 | ||||||||||||||||||
Non-same store/other (2) (3) | 23,636 | 18,197 | 5,793 | 15,326 | 1,594 | 64,546 | ||||||||||||||||||
Total operating expenses | 214,588 | 118,581 | 109,126 | 126,173 | 1,594 | 570,062 | ||||||||||||||||||
NOI: | ||||||||||||||||||||||||
Same store (1) | 340,020 | 195,134 | 161,376 | 226,385 | — | 922,915 | ||||||||||||||||||
Non-same store/other (2) (3) | 53,286 | 19,748 | 8,874 | 29,508 | (1,758 | ) | 109,658 | |||||||||||||||||
Total NOI | $ | 393,306 | $ | 214,882 | $ | 170,250 | $ | 255,893 | $ | (1,758 | ) | $ | 1,032,573 | |||||||||||
Total assets | $ | 6,945,739 | $ | 3,029,831 | $ | 2,358,093 | $ | 3,286,507 | $ | 1,048,375 | $ | 16,668,545 | ||||||||||||
Capital expenditures | $ | 42,259 | $ | 27,337 | $ | 22,280 | $ | 21,732 | $ | 927 | $ | 114,535 |
(1) | Same store primarily includes all properties acquired or completed and stabilized prior to January 1, 2011, less properties subsequently sold, which represented 102,241 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. |
Nine Months Ended September 30, 2011 | ||||||||||||||||||||||||
Northeast | Northwest | Southeast | Southwest | Other (3) | Total | |||||||||||||||||||
Rental income: | ||||||||||||||||||||||||
Same store (1) | $ | 502,724 | $ | 272,851 | $ | 253,202 | $ | 324,913 | $ | — | $ | 1,353,690 | ||||||||||||
Non-same store/other (2) (3) | 33,937 | 4,217 | 9,764 | 18,902 | (3,374 | ) | 63,446 | |||||||||||||||||
Total rental income | 536,661 | 277,068 | 262,966 | 343,815 | (3,374 | ) | 1,417,136 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Same store (1) | 185,770 | 97,617 | 100,102 | 111,020 | — | 494,509 | ||||||||||||||||||
Non-same store/other (2) (3) | 11,799 | 1,680 | 3,528 | 8,005 | 5,462 | 30,474 | ||||||||||||||||||
Total operating expenses | 197,569 | 99,297 | 103,630 | 119,025 | 5,462 | 524,983 | ||||||||||||||||||
NOI: | ||||||||||||||||||||||||
Same store (1) | 316,954 | 175,234 | 153,100 | 213,893 | — | 859,181 | ||||||||||||||||||
Non-same store/other (2) (3) | 22,138 | 2,537 | 6,236 | 10,897 | (8,836 | ) | 32,972 | |||||||||||||||||
Total NOI | $ | 339,092 | $ | 177,771 | $ | 159,336 | $ | 224,790 | $ | (8,836 | ) | $ | 892,153 |
(1) | Same store primarily includes all properties acquired or completed and stabilized prior to January 1, 2011, less properties subsequently sold, which represented 102,241 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 $0.3 million and other corporate operations. |
Quarter Ended September 30, 2012 | ||||||||||||||||||||||||
Northeast | Northwest | Southeast | Southwest | Other (3) | Total | |||||||||||||||||||
Rental income: | ||||||||||||||||||||||||
Same store (1) | $ | 190,140 | $ | 103,926 | $ | 93,609 | $ | 120,388 | $ | — | $ | 508,063 | ||||||||||||
Non-same store/other (2) (3) | 21,399 | 12,226 | 1,400 | 10,126 | (122 | ) | 45,029 | |||||||||||||||||
Total rental income | 211,539 | 116,152 | 95,009 | 130,514 | (122 | ) | 553,092 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Same store (1) | 66,289 | 34,805 | 36,949 | 39,420 | — | 177,463 | ||||||||||||||||||
Non-same store/other (2) (3) | 7,318 | 5,686 | 788 | 3,580 | (1,428 | ) | 15,944 | |||||||||||||||||
Total operating expenses | 73,607 | 40,491 | 37,737 | 43,000 | (1,428 | ) | 193,407 | |||||||||||||||||
NOI: | ||||||||||||||||||||||||
Same store (1) | 123,851 | 69,121 | 56,660 | 80,968 | — | 330,600 | ||||||||||||||||||
Non-same store/other (2) (3) | 14,081 | 6,540 | 612 | 6,546 | 1,306 | 29,085 | ||||||||||||||||||
Total NOI | $ | 137,932 | $ | 75,661 | $ | 57,272 | $ | 87,514 | $ | 1,306 | $ | 359,685 |
(1) | Same store primarily includes all properties acquired or completed and stabilized prior to July 1, 2011, less properties subsequently sold, which represented 105,902 apartment units. |
(2) | Non-same store primarily includes properties acquired after July 1, 2011, plus any properties in lease-up and not stabilized as of July 1, 2011. |
(3) | Other includes development and other corporate operations. |
Quarter Ended September 30, 2011 | ||||||||||||||||||||||||
Northeast | Northwest | Southeast | Southwest | Other (3) | Total | |||||||||||||||||||
Rental income: | ||||||||||||||||||||||||
Same store (1) | $ | 180,074 | $ | 95,679 | $ | 89,056 | $ | 115,447 | $ | — | $ | 480,256 | ||||||||||||
Non-same store/other (2) (3) | 6,034 | 86 | 468 | 3,791 | 309 | 10,688 | ||||||||||||||||||
Total rental income | 186,108 | 95,765 | 89,524 | 119,238 | 309 | 490,944 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Same store (1) | 64,479 | 33,844 | 34,437 | 39,622 | — | 172,382 | ||||||||||||||||||
Non-same store/other (2) (3) | 1,926 | 195 | 154 | 1,673 | 1,666 | 5,614 | ||||||||||||||||||
Total operating expenses | 66,405 | 34,039 | 34,591 | 41,295 | 1,666 | 177,996 | ||||||||||||||||||
NOI: | ||||||||||||||||||||||||
Same store (1) | 115,595 | 61,835 | 54,619 | 75,825 | — | 307,874 | ||||||||||||||||||
Non-same store/other (2) (3) | 4,108 | (109 | ) | 314 | 2,118 | (1,357 | ) | 5,074 | ||||||||||||||||
Total NOI | $ | 119,703 | $ | 61,726 | $ | 54,933 | $ | 77,943 | $ | (1,357 | ) | $ | 312,948 |
(1) | Same store primarily includes all properties acquired or completed and stabilized prior to July 1, 2011, less properties subsequently sold, which represented 105,902 apartment units. |
(2) | Non-same store primarily includes properties acquired after July 1, 2011, plus any properties in lease-up and not stabilized as of July 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. |
Nine Months Ended September 30, | Quarter Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Rental income | $ | 1,602,635 | $ | 1,417,136 | $ | 553,092 | $ | 490,944 | ||||||||
Property and maintenance expense | (325,071 | ) | (300,362 | ) | (110,679 | ) | (101,712 | ) | ||||||||
Real estate taxes and insurance expense | (182,222 | ) | (162,430 | ) | (64,235 | ) | (57,109 | ) | ||||||||
Property management expense | (62,769 | ) | (62,191 | ) | (18,493 | ) | (19,175 | ) | ||||||||
Total operating expenses | (570,062 | ) | (524,983 | ) | (193,407 | ) | (177,996 | ) | ||||||||
Net operating income | $ | 1,032,573 | $ | 892,153 | $ | 359,685 | $ | 312,948 |
14. | Subsequent Events/Other |
• | Acquired one land parcel for $79.0 million; |
• | Sold two properties consisting of 542 apartment units for $50.4 million; |
• | Repaid $24.0 million in mortgage loans; |
• | Repaid $222.1 million of 5.500% unsecured notes at maturity; and |
• | Repaid its $500.0 million term loan facility at maturity. |
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 $906.3 million of apartment properties consisting of nine consolidated properties and 1,896 apartment units at a weighted average cap rate (see definition below) of 4.7% and five land parcels for $62.2 million, all of which we deem to be in our strategic targeted markets; and |
▪ | Sold $616.9 million of consolidated apartment properties consisting of 20 properties and 5,337 apartment units at a weighted average cap rate of 6.2%, the majority of which were in exit or less desirable markets. These sales, excluding two leveraged partially-owned assets sold during the third quarter, generated an unlevered internal rate of return (IRR), inclusive of management costs, of 10.8%. |
Nine Months Ended | Quarter Ended | ||||||||
September 30, 2012 | September 30, 2012 | ||||||||
Properties | Apartment Units | Properties | Apartment Units | ||||||
Same Store Properties at Beginning of Period | 370 | 101,312 | 385 | 105,604 | |||||
2010 acquisitions | 16 | 4,445 | — | — | |||||
2010 acquisitions not stabilized | (2 | ) | (1,238 | ) | — | — | |||
2011 acquisitions | — | — | 5 | 1,550 | |||||
2012 dispositions | (20 | ) | (5,337 | ) | (8 | ) | (2,153 | ) | |
2012 dispositions not stabilized | 2 | 441 | 2 | 441 | |||||
Consolidation of previously unconsolidated properties in 2010 (1) | 4 | 1,043 | — | — | |||||
Lease-up properties stabilized | 4 | 1,570 | 1 | 457 | |||||
Other | — | 5 | — | 3 | |||||
Same Store Properties at September 30, 2012 | 374 | 102,241 | 385 | 105,902 |
Nine Months Ended | Quarter Ended | ||||||||
September 30, 2012 | September 30, 2012 | ||||||||
Properties | Apartment Units | Properties | Apartment Units | ||||||
Same Store | 374 | 102,241 | 385 | 105,902 | |||||
Non-Same Store: | |||||||||
2012 acquisitions | 9 | 1,896 | 9 | 1,896 | |||||
2011 acquisitions | 21 | 6,198 | 14 | 4,127 | |||||
Lease-up properties not yet stabilized (2) | 11 | 3,656 | 7 | 2,065 | |||||
Other | 1 | 4 | 1 | 5 | |||||
Total Non-Same Store | 42 | 11,754 | 31 | 8,093 | |||||
Military Housing (not consolidated) | 2 | 4,991 | 2 | 4,991 | |||||
Total Properties and Apartment Units | 418 | 118,986 | 418 | 118,986 | |||||
(1) | In 2010, the Company consolidated seven properties containing 1,811 apartment units that had previously been categorized as unconsolidated. Of these properties, one containing 208 apartment units was sold in 2010 and two containing 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. |
September YTD 2012 vs. September YTD 2011 | ||||||||||||||||||||||
Same Store Results/Statistics | ||||||||||||||||||||||
$ in thousands (except for Average Rental Rate) – 102,241 Same Store Apartment Units | ||||||||||||||||||||||
Results | Statistics | |||||||||||||||||||||
Description | Revenues | Expenses | NOI | Average Rental Rate (1) | Occupancy | Turnover | ||||||||||||||||
YTD 2012 | $ | 1,428,431 | $ | 505,516 | $ | 922,915 | $ | 1,630 | 95.3 | % | 45.3 | % | ||||||||||
YTD 2011 | $ | 1,353,690 | $ | 494,509 | $ | 859,181 | $ | 1,547 | 95.2 | % | 44.2 | % | ||||||||||
Change | $ | 74,741 | $ | 11,007 | $ | 63,734 | $ | 83 | 0.1 | % | 1.1 | % | ||||||||||
Change | 5.5 | % | 2.2 | % | 7.4 | % | 5.4 | % | ||||||||||||||
(1) Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment units for the period. |
September YTD 2012 vs. September YTD 2011 | ||||||||||||||||||
Same Store Operating Expenses | ||||||||||||||||||
$ in thousands – 102,241 Same Store Apartment Units | ||||||||||||||||||
Actual YTD 2012 | Actual YTD 2011 | $ Change | % Change | % of Actual YTD 2012 Operating Expenses | ||||||||||||||
Real estate taxes | $ | 150,745 | $ | 141,365 | $ | 9,380 | 6.6 | % | 29.8 | % | ||||||||
On-site payroll (1) | 114,836 | 113,798 | 1,038 | 0.9 | % | 22.7 | % | |||||||||||
Utilities (2) | 76,423 | 77,136 | (713 | ) | (0.9 | %) | 15.1 | % | ||||||||||
Repairs and maintenance (3) | 70,369 | 69,209 | 1,160 | 1.7 | % | 13.9 | % | |||||||||||
Property management costs (4) | 53,566 | 54,148 | (582 | ) | (1.1 | %) | 10.6 | % | ||||||||||
Insurance | 15,955 | 14,906 | 1,049 | 7.0 | % | 3.2 | % | |||||||||||
Leasing and advertising | 8,382 | 9,224 | (842 | ) | (9.1 | %) | 1.7 | % | ||||||||||
Other on-site operating expenses (5) | 15,240 | 14,723 | 517 | 3.5 | % | 3.0 | % | |||||||||||
Same store operating expenses | $ | 505,516 | $ | 494,509 | $ | 11,007 | 2.2 | % | 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. |
Nine Months Ended September 30, | ||||||||
2012 | 2011 | |||||||
(Amounts in thousands) | ||||||||
Operating income | $ | 489,790 | $ | 395,750 | ||||
Adjustments: | ||||||||
Non-same store operating results | (109,658 | ) | (32,972 | ) | ||||
Fee and asset management revenue | (7,328 | ) | (6,682 | ) | ||||
Fee and asset management expense | 3,595 | 3,207 | ||||||
Depreciation | 509,338 | 467,416 | ||||||
General and administrative | 37,178 | 32,462 | ||||||
Same store NOI | $ | 922,915 | $ | 859,181 |
2012 Same Store Assumptions | |
Physical occupancy | 95.3% |
Revenue change | 5.6% |
Expense change | 2.3% |
NOI change | 7.5% |
▪ | Development and other miscellaneous properties in lease-up of $10.1 million; |
▪ | Properties acquired in 2011 and 2012 of $55.4 million; and |
▪ | Newly stabilized development and other miscellaneous properties of $5.4 million. |
Third Quarter 2012 vs. Third Quarter 2011 | ||||||||||||||||||||||
Same Store Results/Statistics | ||||||||||||||||||||||
$ in thousands (except for Average Rental Rate) – 105,902 Same Store Apartment Units | ||||||||||||||||||||||
Results | Statistics | |||||||||||||||||||||
Description | Revenues | Expenses | NOI | Average Rental Rate (1) | Occupancy | Turnover | ||||||||||||||||
Q3 2012 | $ | 508,063 | $ | 177,463 | $ | 330,600 | $ | 1,670 | 95.8 | % | 17.5 | % | ||||||||||
Q3 2011 | $ | 480,256 | $ | 172,382 | $ | 307,874 | $ | 1,588 | 95.3 | % | 17.7 | % | ||||||||||
Change | $ | 27,807 | $ | 5,081 | $ | 22,726 | $ | 82 | 0.5 | % | (0.2 | %) | ||||||||||
Change | 5.8 | % | 2.9 | % | 7.4 | % | 5.2 | % | ||||||||||||||
(1) Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment units for the period. |
Third Quarter 2012 vs. Third Quarter 2011 | ||||||||||||||||||
Same Store Operating Expenses | ||||||||||||||||||
$ in thousands – 105,902 Same Store Apartment Units | ||||||||||||||||||
Actual Q3 2012 | Actual Q3 2011 | $ Change | % Change | % of Actual Q3 2012 Operating Expenses | ||||||||||||||
Real estate taxes | $ | 52,973 | $ | 48,452 | $ | 4,521 | 9.3 | % | 29.9 | % | ||||||||
On-site payroll (1) | 39,675 | 39,922 | (247 | ) | (0.6 | %) | 22.4 | % | ||||||||||
Utilities (2) | 26,861 | 26,366 | 495 | 1.9 | % | 15.1 | % | |||||||||||
Repairs and maintenance (3) | 25,792 | 25,082 | 710 | 2.8 | % | 14.5 | % | |||||||||||
Property management costs (4) | 18,544 | 19,210 | (666 | ) | (3.5 | %) | 10.4 | % | ||||||||||
Insurance | 5,572 | 5,179 | 393 | 7.6 | % | 3.1 | % | |||||||||||
Leasing and advertising | 3,109 | 3,180 | (71 | ) | (2.2 | %) | 1.8 | % | ||||||||||
Other on-site operating expenses (5) | 4,937 | 4,991 | (54 | ) | (1.1 | %) | 2.8 | % | ||||||||||
Same store operating expenses | $ | 177,463 | $ | 172,382 | $ | 5,081 | 2.9 | % | 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 September 30, | ||||||||
2012 | 2011 | |||||||
(Amounts in thousands) | ||||||||
Operating income | $ | 184,127 | $ | 144,814 | ||||
Adjustments: | ||||||||
Non-same store operating results | (29,085 | ) | (5,074 | ) | ||||
Fee and asset management revenue | (3,052 | ) | (2,928 | ) | ||||
Fee and asset management expense | 1,108 | 1,250 | ||||||
Depreciation | 167,406 | 159,691 | ||||||
General and administrative | 10,096 | 10,121 | ||||||
Same store NOI | $ | 330,600 | $ | 307,874 |
▪ | Development and other miscellaneous properties in lease-up of $3.1 million; |
▪ | Properties acquired in 2011 and 2012 of $19.7 million; and |
▪ | Newly stabilized development and other miscellaneous properties of $0.7 million. |
▪ | Disposed of 20 consolidated properties, receiving net proceeds of approximately $610.1 million; |
▪ | Issued approximately 4.8 million Common Shares (including Common Shares issued under the ATM program – see further discussion below) and received net proceeds of $244.0 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); and |
▪ | Collected $150.0 million in termination fees relating to the pursuit of Archstone. |
▪ | Acquire nine rental properties and five land parcels for approximately $764.9 million; |
▪ | Invest $116.7 million primarily in development projects; |
▪ | Repay $291.0 million of mortgage loans and $253.9 million of unsecured notes; and |
▪ | Redeem its Series N Preferred Shares at its liquidation value of $150.0 million. |
Debt Summary as of September 30, 2012 | |||||||||||||
(Amounts in thousands) | |||||||||||||
Amounts (1) | % of Total | Weighted Average Rates (1) | Weighted Average Maturities (years) | ||||||||||
Secured | $ | 3,948,115 | 42.4 | % | 4.95 | % | 7.3 | ||||||
Unsecured | 5,361,038 | 57.6 | % | 5.09 | % | 4.6 | |||||||
Total | $ | 9,309,153 | 100.0 | % | 5.03 | % | 5.7 | ||||||
Fixed Rate Debt: | |||||||||||||
Secured – Conventional | $ | 3,566,932 | 38.3 | % | 5.50 | % | 6.4 | ||||||
Unsecured – Public/Private | 4,550,999 | 48.9 | % | 5.70 | % | 5.4 | |||||||
Fixed Rate Debt | 8,117,931 | 87.2 | % | 5.61 | % | 5.8 | |||||||
Floating Rate Debt: | |||||||||||||
Secured – Conventional | 30,641 | 0.3 | % | 3.35 | % | 2.0 | |||||||
Secured – Tax Exempt | 350,542 | 3.8 | % | 0.22 | % | 17.9 | |||||||
Unsecured – Public/Private | 803,039 | 8.6 | % | 1.67 | % | 0.2 | |||||||
Unsecured – Revolving Credit Facility | 7,000 | 0.1 | % | 1.34 | % | 1.8 | |||||||
Floating Rate Debt | 1,191,222 | 12.8 | % | 1.30 | % | 5.0 | |||||||
Total | $ | 9,309,153 | 100.0 | % | 5.03 | % | 5.7 |
(1) | Net of the effect of any derivative instruments. Weighted average rates are for the nine months ended September 30, 2012. |
Debt Maturity Schedule as of September 30, 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 | $ | 225,280 | $ | 500,125 | $ | 725,405 | (2) | 7.8 | % | 5.51 | % | 2.20 | % | ||||||||||
2013 | 267,888 | 303,548 | 571,436 | 6.1 | % | 6.69 | % | 4.84 | % | ||||||||||||||
2014 | 564,302 | 29,022 | (3) | 593,324 | 6.4 | % | 5.31 | % | 5.19 | % | |||||||||||||
2015 | 417,812 | — | 417,812 | 4.5 | % | 6.30 | % | 6.30 | % | ||||||||||||||
2016 | 1,190,538 | — | 1,190,538 | 12.8 | % | 5.34 | % | 5.34 | % | ||||||||||||||
2017 | 1,446,121 | 456 | 1,446,577 | 15.5 | % | 5.95 | % | 5.95 | % | ||||||||||||||
2018 | 81,448 | 724 | 82,172 | 0.9 | % | 5.70 | % | 5.70 | % | ||||||||||||||
2019 | 802,635 | 20,766 | 823,401 | 8.8 | % | 5.49 | % | 5.36 | % | ||||||||||||||
2020 | 1,672,482 | 809 | 1,673,291 | 18.0 | % | 5.50 | % | 5.50 | % | ||||||||||||||
2021 | 1,188,906 | 856 | 1,189,762 | 12.8 | % | 4.64 | % | 4.64 | % | ||||||||||||||
2022+ | 233,862 | 338,604 | 572,466 | 6.2 | % | 6.75 | % | 3.33 | % | ||||||||||||||
Premium/(Discount) | 26,657 | (3,688 | ) | 22,969 | 0.2 | % | N/A | N/A | |||||||||||||||
Total | $ | 8,117,931 | $ | 1,191,222 | $ | 9,309,153 | 100.0 | % | 5.54 | % | 5.01 | % |
(1) | Net of the effect of any derivative instruments. Weighted average rates are as of September 30, 2012. |
(2) | In October 2012, the Company paid off the $222.1 million outstanding of its 5.500% public notes and its $500.0 million term loan facility, both at maturity. |
(3) | Includes $7.0 million outstanding on the Company's unsecured revolving credit facility. As of September 30, 2012, there was approximately $1.71 billion available on this facility. |
Unsecured Debt Summary as of September 30, 2012 | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Coupon Rate | Due Date | Face Amount | Unamortized Premium/ (Discount) | Net Balance | ||||||||||||||
Fixed Rate Notes: | ||||||||||||||||||
5.500% | 10/01/12 | (1) | $ | 222,133 | $ | — | $ | 222,133 | ||||||||||
5.200% | 04/01/13 | (2) | 400,000 | (59 | ) | 399,941 | ||||||||||||
Fair Value Derivative Adjustments | (2) | (300,000 | ) | — | (300,000 | ) | ||||||||||||
5.250% | 09/15/14 | 500,000 | (120 | ) | 499,880 | |||||||||||||
6.584% | 04/13/15 | 300,000 | (276 | ) | 299,724 | |||||||||||||
5.125% | 03/15/16 | 500,000 | (184 | ) | 499,816 | |||||||||||||
5.375% | 08/01/16 | 400,000 | (711 | ) | 399,289 | |||||||||||||
5.750% | 06/15/17 | 650,000 | (2,416 | ) | 647,584 | |||||||||||||
7.125% | 10/15/17 | 150,000 | (327 | ) | 149,673 | |||||||||||||
4.750% | 07/15/20 | 600,000 | (3,548 | ) | 596,452 | |||||||||||||
4.625% | 12/15/21 | 1,000,000 | (3,493 | ) | 996,507 | |||||||||||||
7.570% | 08/15/26 | 140,000 | — | 140,000 | ||||||||||||||
4,562,133 | (11,134 | ) | 4,550,999 | |||||||||||||||
Floating Rate Notes: | ||||||||||||||||||
04/01/13 | (2) | 300,000 | — | 300,000 | ||||||||||||||
Fair Value Derivative Adjustments | (2) | 3,039 | — | 3,039 | ||||||||||||||
Term Loan Facility | LIBOR+0.50% | 10/05/12 | (3)(4) | 500,000 | — | 500,000 | ||||||||||||
803,039 | — | 803,039 | ||||||||||||||||
Revolving Credit Facility: | LIBOR+1.15% | 07/13/14 | (3)(5) | 7,000 | — | 7,000 | ||||||||||||
Total Unsecured Debt | $ | 5,372,172 | $ | (11,134 | ) | $ | 5,361,038 |
(1) | On October 1, 2012, the Company paid off its 5.500% public notes at maturity. |
(2) | Fair value interest rate swaps convert $300.0 million of the 5.200% notes due April 1, 2013 to a floating interest rate. |
(3) | Facilities are private. All other unsecured debt is public. |
(4) | On October 5, 2012, the Company paid off its $500.0 million term loan facility at maturity. |
(5) | As of September 30, 2012, there was approximately $1.71 billion available on the Company’s unsecured revolving credit facility. |
Equity Residential | |||||||||||||||||
Capital Structure as of September 30, 2012 | |||||||||||||||||
(Amounts in thousands except for share/unit and per share amounts) | |||||||||||||||||
Secured Debt | $ | 3,948,115 | 42.4 | % | |||||||||||||
Unsecured Debt | 5,361,038 | 57.6 | % | ||||||||||||||
Total Debt | 9,309,153 | 100.0 | % | 33.7 | % | ||||||||||||
Common Shares (includes Restricted Shares) | 302,674,716 | 95.5 | % | ||||||||||||||
Units (includes OP Units and LTIP Units) | 14,399,790 | 4.5 | % | ||||||||||||||
Total Shares and Units | 317,074,506 | 100.0 | % | ||||||||||||||
Common Share Price at September 30, 2012 | $ | 57.53 | |||||||||||||||
18,241,296 | 99.7 | % | |||||||||||||||
Perpetual Preferred Equity (see below) | 50,000 | 0.3 | % | ||||||||||||||
Total Equity | 18,291,296 | 100.0 | % | 66.3 | % | ||||||||||||
Total Market Capitalization | $ | 27,600,449 | 100.0 | % |
Equity Residential | |||||||||||||||||
Perpetual Preferred Equity as of September 30, 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 | ||||||||||||
Preferred Shares: | |||||||||||||||||
8.29% Series K | 12/10/26 | 1,000,000 | $ | 50,000 | $ | 4.145 | $ | 4,145 | |||||||||
Total Perpetual Preferred Equity | 1,000,000 | $ | 50,000 | $ | 4,145 |
ERP Operating Limited Partnership | ||||||||||||||
Capital Structure as of September 30, 2012 | ||||||||||||||
(Amounts in thousands except for unit and per unit amounts) | ||||||||||||||
Secured Debt | $ | 3,948,115 | 42.4 | % | ||||||||||
Unsecured Debt | 5,361,038 | 57.6 | % | |||||||||||
Total Debt | 9,309,153 | 100.0 | % | 33.7 | % | |||||||||
Total outstanding Units | 317,074,506 | |||||||||||||
Common Share Price at September 30, 2012 | $ | 57.53 | ||||||||||||
18,241,296 | 99.7 | % | ||||||||||||
Perpetual Preference Units (see below) | 50,000 | 0.3 | % | |||||||||||
Total Equity | 18,291,296 | 100.0 | % | 66.3 | % | |||||||||
Total Market Capitalization | $ | 27,600,449 | 100.0 | % |
ERP Operating Limited Partnership | |||||||||||||||||
Perpetual Preference Units as of September 30, 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 | ||||||||||||
Preference Units: | |||||||||||||||||
8.29% Series K | 12/10/26 | 1,000,000 | $ | 50,000 | $ | 4.145 | $ | 4,145 | |||||||||
Total Perpetual Preference Units | 1,000,000 | $ | 50,000 | $ | 4,145 |
▪ | 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 Nine Months Ended September 30, 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) | 102,241 | $ | 52,719 | $ | 516 | $ | 39,723 | $ | 388 | $ | 92,442 | $ | 904 | ||||||||||||||
Non-Same Store Properties (4) | 11,754 | 5,572 | 535 | 15,594 | 1,496 | 21,166 | 2,031 | ||||||||||||||||||||
Other (5) | — | 636 | 291 | 927 | |||||||||||||||||||||||
Total | 113,995 | $ | 58,927 | $ | 55,608 | $ | 114,535 |
(1) | Total Apartment Units – Excludes 4,991 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 $26.0 million spent during the nine months ended September 30, 2012 on apartment unit renovations/rehabs (primarily kitchens and baths) on 3,497 apartment units (equating to about $7,400 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 10,418 apartment units. |
(5) | Other – Primarily includes expenditures for properties sold during the period. |
Funds From Operations and Normalized Funds From Operations | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||
Nine Months Ended September 30, | Quarter Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Net income | $ | 496,805 | $ | 827,796 | $ | 236,323 | $ | 112,977 | ||||||||
Net (income) loss attributable to Noncontrolling Interests – | ||||||||||||||||
Partially Owned Properties | (457 | ) | (418 | ) | 312 | (387 | ) | |||||||||
Preferred/preference distributions | (9,319 | ) | (10,399 | ) | (2,386 | ) | (3,466 | ) | ||||||||
Premium on redemption of Preferred Shares/Preference Units | (5,150 | ) | — | (5,150 | ) | — | ||||||||||
Net income available to Common Shares and Units / Units | 481,879 | 816,979 | 229,099 | 109,124 | ||||||||||||
Adjustments: | ||||||||||||||||
Depreciation | 509,338 | 467,416 | 167,406 | 159,691 | ||||||||||||
Depreciation – Non-real estate additions | (4,211 | ) | (4,202 | ) | (1,430 | ) | (1,297 | ) | ||||||||
Depreciation – Partially Owned and Unconsolidated Properties | (2,395 | ) | (2,263 | ) | (798 | ) | (758 | ) | ||||||||
Discontinued operations: | ||||||||||||||||
Depreciation | 7,602 | 28,879 | 1,428 | 5,762 | ||||||||||||
Net (gain) on sales of discontinued operations | (307,447 | ) | (759,100 | ) | (103,394 | ) | (76,864 | ) | ||||||||
Net incremental gain on sales of condominium units | 49 | 2,050 | — | 935 | ||||||||||||
Gain (loss) on sale of Equity Corporate Housing (ECH) | 350 | 1,022 | — | (2 | ) | |||||||||||
FFO available to Common Shares and Units / Units (1) (3) (4) | 685,165 | 550,781 | 292,311 | 196,591 | ||||||||||||
Adjustments: | ||||||||||||||||
Asset impairment and valuation allowances | — | — | — | — | ||||||||||||
Property acquisition costs and write-off of pursuit costs (other expenses) | 14,898 | 9,318 | 4,004 | 2,528 | ||||||||||||
Debt extinguishment (gains) losses, including prepayment penalties, preferred share/preference unit redemptions and non-cash convertible debt discounts | 7,491 | 9,250 | 6,114 | 677 | ||||||||||||
(Gains) losses on sales of non-operating assets, net of income and other tax expense (benefit) | (491 | ) | (6,554 | ) | — | (1,025 | ) | |||||||||
Other miscellaneous non-comparable items | (67,687 | ) | (7,762 | ) | (69,910 | ) | (5,662 | ) | ||||||||
Normalized FFO available to Common Shares and Units / Units (2) (3) (4) | $ | 639,376 | $ | 555,033 | $ | 232,519 | $ | 193,109 | ||||||||
FFO (1) (3) | $ | 699,634 | $ | 561,180 | $ | 299,847 | $ | 200,057 | ||||||||
Preferred/preference distributions | (9,319 | ) | (10,399 | ) | (2,386 | ) | (3,466 | ) | ||||||||
Premium on redemption of Preferred Shares/Preference Units | (5,150 | ) | — | (5,150 | ) | — | ||||||||||
FFO available to Common Shares and Units / Units (1) (3) (4) | $ | 685,165 | $ | 550,781 | $ | 292,311 | $ | 196,591 | ||||||||
Normalized FFO (2) (3) | $ | 648,695 | $ | 565,432 | $ | 234,905 | $ | 196,575 | ||||||||
Preferred/preference distributions | (9,319 | ) | (10,399 | ) | (2,386 | ) | (3,466 | ) | ||||||||
Normalized FFO available to Common Shares and Units / Units (2) (3) (4) | $ | 639,376 | $ | 555,033 | $ | 232,519 | $ | 193,109 |
(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 to Common Shares and Units / Units can help compare the operating performance of a company’s real estate between periods or as compared to different companies. The company also believes that Normalized FFO and Normalized FFO available to Common Shares and Units / Units are helpful to investors as supplemental measures of the operating performance of a real estate company because they allow investors to compare the company’s operating performance to its performance in prior reporting periods and to the operating performance of other real estate companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual operating results. FFO, FFO available to Common Shares and Units / Units, Normalized FFO and Normalized FFO available to Common Shares and Units / Units do not represent net income, net income available to Common Shares / Units or net cash flows from operating activities in accordance with GAAP. Therefore, FFO, FFO available to Common Shares and Units / Units, Normalized FFO and Normalized FFO available to Common Shares and Units / Units should not be exclusively considered as alternatives to net income, net income available to Common Shares / Units or net cash flows from operating activities as determined by GAAP or as a measure of liquidity. The Company’s calculation of FFO, FFO available to Common Shares and Units / Units, Normalized FFO and Normalized FFO available to Common Shares and Units / Units may differ from other real estate companies due to, among other items, variations in cost capitalization policies for capital expenditures and, accordingly, may not be comparable to such other real estate companies. |
(4) | FFO available to Common Shares and Units / 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: | November 1, 2012 | By: | /s/ Mark J. Parrell | ||
Mark J. Parrell | |||||
Executive Vice President and Chief Financial Officer | |||||
(Principal Financial Officer) | |||||
Date: | November 1, 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: | November 1, 2012 | By: | /s/ Mark J. Parrell | ||
Mark J. Parrell | |||||
Executive Vice President and Chief Financial Officer | |||||
(Principal Financial Officer) | |||||
Date: | November 1, 2012 | By: | /s/ Ian S. Kaufman | ||
Ian S. Kaufman | |||||
Senior Vice President and Chief Accounting Officer | |||||
(Principal Accounting Officer) |
Exhibit | Description | Location | ||
*10.1 | Separation Agreement dated August 28, 2012, by and between Equity Residential and Frederick C. Tuomi. | Attached herein. | ||
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 September 30, 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. | For the purposes of this Agreement, the term “Equity” includes: Equity Residential, Equity Residential Management, L.L.C., Equity Residential Services, L.L.C., Equity Residential Properties Management Limited Partnership, ERP Operating Limited Partnership, Equity Residential Properties Management Limited Partnership II, Equity Residential Properties Management Corp., Equity Residential Properties Management Corp. II, ERP Holding Co. Inc., and to the extent applicable, as direct intended and third party beneficiaries hereof, their past and present owners, directors, officers, managers, agents, attorneys, insurers, executives, representatives, trustees, administrators, fiduciaries, parents, subsidiaries, divisions, partners, joint ventures, sister corporations and/or affiliated business entities, predecessors, successors, heirs, and assigns, jointly and severally, in both their personal and corporate capacities. |
2. | For the purposes of this Agreement, the term “Executive” shall mean Frederick C. Tuomi. |
3. | Executive will continue to perform all of his customary duties and responsibilities, including active participation in the fiscal year 2012 year-end compensation review, 2013 budgeting and planning process and fourth quarter 2012 earnings call. Executive will also assist in the orderly transition of his responsibilities to others and will continue to be available on an “as needed” basis, as determined by Equity’s Chief Executive Officer, until the Retirement Date. |
4. | Executive will continue to be reimbursed for reasonable and necessary business expenses incurred between the date hereof and the Retirement Date but will accrue no vacation, trading or personal days after February 2013. |
5. | Executive’s salary and long-term incentive compensation (“LTC”)/cash bonus targets for 2013 will remain unchanged from 2012. Executive will receive his regular base pay until the Retirement Date and will not receive any severance relating to his retirement. |
6. | Executive will receive in February, 2013 a LTC grant (share options and restricted shares/LTIP Units) and cash bonus for services provided during 2012. The grant shall be made at the same time as made to Equity’s other executive officers and shall be in an amount and proportional allocation determined by Equity’s Compensation Committee and Board of Trustees as part of its normal year-end process, subject to normal pool adjustments. |
7. | Executive will receive a prorated LTC grant and cash bonus amount for services provided during the period from January 1, 2013 to June 30, 2013, based on 100% of his annual target amounts (or such appropriate prorated amount in the event of Executive’s death prior to such date). The LTC grant in the amount of $500,000 (100% of Executive’s full year target prorated for six months) will be made at the same time as the annual LTC grant is made to Equity’s Board of Trustees on the date of the annual shareholders’ meeting (currently set for June 13, 2013) and will be allocated among share options and restricted shares/LTIP Units in the same allocation as Executive’s February, 2013 LTC grant. If Equity’s tax department does not authorize the issuance of LTIP Units at that time, Executive will receive restricted shares in lieu thereof. The cash bonus in the amount of $250,000 (100% of Executive’s full year target prorated for six months) will be paid in early July, 2013 in accordance with Equity’s normal payroll process. |
8. | All of Executive’s current and future LTC grants will continue to vest per their original vesting schedule (subject to immediate vesting upon the occurrence of a subsequent Change in Control of Equity or Executive’s death or disability), and all options will continue to be exercisable for the balance of the applicable ten-year option period, subject in each case to Executive’s compliance with this Agreement’s non-competition and employee non-solicitation provisions set forth in paragraphs 14 and 15 hereof. These provisions shall remain in effect until such time as Executive no longer has any unvested LTC or vested but un-exercised stock options. Executive, at any time, may forfeit his unvested LTC or vested but un-exercised stock options by providing written notice to Equity’s General Counsel, after which the restrictions contained in paragraphs 14 and 15 will no longer apply. If Executive violates the restrictions contained in paragraphs 14 and 15 after the Retirement Date and while they still apply, in addition to Equity’s other remedies, all Executive’s unvested LTC and vested but un-exercised stock options at the time of the violation will be void unless Equity’s Compensation Committee agrees otherwise. |
9. | Pursuant to the Executive Retirement Benefits Agreement entered into by Executive and Equity Residential in February 2001, Equity will continue to provide Executive, his spouse and eligible dependents with company sponsored medical, dental and vision health insurance benefits and life insurance benefits, (initially at the same amount of coverage in existence as of the Retirement Date) for the period from the Retirement Date until Executive’s death, subject to the same terms and conditions (including making the same monthly contributions as existing employees) as are applicable to active full-time Equity employees. The company sponsored life insurance shall be subject to the provider’s standard age reduction schedule for active full-time employees, and Equity will not provide Executive with any disability or accidental death or dismemberment benefits after the Retirement Date. Equity’s obligations to provide Executive with the benefits hereunder shall survive any sale of Equity and/or its discontinuation of any such company sponsored plans and shall be binding on its successors and assigns, in which case Equity and/or its successors and assigns shall remain obligated to provide Executive with similar benefits as offered from time to time by other large public company sponsored health and life insurance plans. |
10. | Effective on the Retirement Date, Executive will be fully vested in the split dollar life insurance policies purchased by Equity on his behalf in December, 1997, and any cash surrender value |
i. | passive investments in multi-family companies or properties; |
ii. | active investments in multi-family companies or properties not located in any of Equity’s markets at the time of such investment; and |
iii. | active investments in multi-family companies or properties located in any of Equity’s markets at the time of such investment, provided no property contains more than 80 units or the average purchase price per unit in each property is (a) equal to or less than $150,000 for properties located in the State of California and (b) equal to or less than $100,000 for properties located in all other Equity markets. |
EQUITY RESIDENTIAL | EXECUTIVE | |||
By: | /s/ Bruce C. Strohm | By: | /s/ Frederick C. Tuomi | |
Bruce C. Strohm | Frederick C. Tuomi | |||
Executive Vice President | ||||
1. | The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against either of the parties. This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois, (without giving effect to the conflict of laws principles thereof) except to the extent that federal laws apply. |
2. | The parties agree and acknowledge that should either party violate any term of this Agreement, the amount of damages that party would suffer as a result of such violation would be difficult to ascertain. In the event of a breach by either party of any term of this Agreement, in addition to injunctive relief or any other damages, the non-breaching party may recover all costs and expense reasonably incurred by it in enforcing this Agreement or defending against a suit brought in violation of this Agreement, including reasonable attorneys’ fees. |
1. | Executive acknowledges that he has been given twenty-one (21) days from the date he received this Agreement to consider its terms and decide whether or not to sign it. Executive understands that he may revoke this Agreement at any time within the seven (7) day period following execution thereof and that this Agreement shall become effective and enforceable when the revocation period has expired. |
2. | Executive acknowledges that this Agreement constitutes written notice from Equity that it advises Executive to seek legal counsel before signing this Agreement, and that he has had an opportunity to do so. |
3. | This Agreement cannot be modified, withdrawn, rescinded or supplemented in any manner after the date upon which it is executed except in a writing signed by both parties. |
4. | Except as otherwise expressly set forth herein and in the Separation Agreement (which remains in full force and effect), this Agreement resolves all matters between Equity and Executive and supersedes any other written or oral agreement between Equity and Executive concerning the subject matter of this Agreement. |
5. | Executive acknowledges that in executing this Agreement he does not rely on any inducements, promises or representations made by Equity other than those expressly stated herein and in the Separation Agreement. Further, Executive declares that he has completely read this Agreement and fully understands its terms and contents, including his rights and obligations hereunder, and freely, voluntarily and without coercion enters into this Agreement. |
EQUITY RESIDENTIAL | EXECUTIVE | |||
By: | By: | |||
Bruce C. Strohm | Frederick C. Tuomi | |||
Executive Vice President |
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 |
November 1, 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 |
November 1, 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. |
Summary of Significant Accounting Policies Summary of Significant Accounting Policies Text (Details) (USD $)
|
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Deferred Tax Assets, Gross | $ 31,700,000 | |
Partially Owned Consolidated Properties | 19 | |
Partially Owned Consolidated Units | 3,475 | |
Noncontrolling Interests - Partially Owned Properties | 75,428,000 | 74,306,000 |
Partially Owned Limited Life Partnership Properties | 6 | |
Noncontrolling Interest Balance Limited Life Partnerships | (6,000,000) | |
Noncontrolling Interests Settlement Value | 33,300,000 | |
Partially Owned Properties [Member]
|
||
Noncontrolling Interests - Partially Owned Properties | $ 75,428,000 |
Derivative and Other Fair Value Instruments (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
---|---|
Fair Value Hedges [Member]
|
|
Derivative [Line Items] | |
Current Notional Balance | $ 300,000 |
Lowest Possible Notional | 300,000 |
Highest Possible Notional | 300,000 |
Lowest Interest Rate | 2.009% |
Highest Interest Rate | 2.637% |
Earliest Maturity Date | 2013 |
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 |
Sep. 30, 2012
|
---|---|
Commitments to Acquire Real Estate | |
Properties Acquired-Total | 2 |
Land Parcels Contracted to be Acquired | 2 |
Rental Units Acquired - Total | 542 |
Purchase Price - Total | $ 249,750 |
Commitments to Dispose of Real Estate | |
Properties Disposed - Total | 5 |
Rental Units Disposed-Total | 1,578 |
Sales price-Rental Properties | 141,450 |
Rental Properties to be acquired [Member]
|
|
Commitments to Acquire Real Estate | |
Properties Acquired-Total | 2 |
Rental Units Acquired - Total | 542 |
Purchase Price - Total | 192,250 |
Land Parcel [Member]
|
|
Commitments to Acquire Real Estate | |
Land Parcels Contracted to be Acquired | 0 |
Rental Units Acquired - Total | 0 |
Purchase Price - Total | 57,500 |
Rental Properties Disposed of [Member]
|
|
Commitments to Dispose of Real Estate | |
Properties Disposed - Total | 5 |
Rental Units Disposed-Total | 1,578 |
Sales price-Rental Properties | $ 141,450 |
Real Estate Real Estate Acquisitions (Details) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Acquired Properties | 9 |
Units - acquired | 1,896 |
Business Acquisition, Cost of Acquired Entity, Purchase Price | $ 968,545 |
Consolidated Rental Properties [Member]
|
|
Acquired Properties | 9 |
Units - acquired | 1,896 |
Business Acquisition, Cost of Acquired Entity, Purchase Price | 906,305 |
Land Parcel [Member]
|
|
Acquired Properties | 0 |
Land parcels acquired | 5 |
Units - acquired | 0 |
Business Acquisition, Cost of Acquired Entity, Purchase Price | $ 62,240 |
Deposits - Restricted Deposits - Restricted Summary (Tables)
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9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Deposits Restricted (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Cash and Cash Equivalents [Table Text Block] |
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Derivative and Other Fair Value Instruments (Details 4) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended | 12 Months Ended |
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Sep. 30, 2012
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Dec. 31, 2011
|
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Available for Sale | ||
Other assets, amortized cost | $ 675 | $ 675 |
Other assets, Unrealized Gains | 1,269 | 875 |
Other assets, Unrealized Losses | 0 | 0 |
Other assets, Book/Fair value | 1,944 | 1,550 |
Interest and Other income | 0 | 0 |
Other Available-for-Sale Securities [Member]
|
||
Available for Sale | ||
Other assets, amortized cost | 675 | 675 |
Other assets, Unrealized Gains | 1,269 | 875 |
Other assets, Unrealized Losses | 0 | 0 |
Other assets, Book/Fair value | 1,944 | 1,550 |
Interest and Other income | $ 0 | $ 0 |
Reportable Segments
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9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 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 that engage in business activities from which they may earn revenues and incur expenses and about which discrete financial information is available that is evaluated regularly by the chief operating decision maker. The chief operating decision maker decides how resources are allocated and assesses performance on a recurring basis at least quarterly. 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. The chief operating decision maker evaluates the Company's operating performance geographically by market and both on a same store and non-same store basis. The Company’s operating segments (geographic markets) have been aggregated into four reportable segments based upon the geographic region in which they are located. The Company’s fee and asset management and development (including its partially owned properties) activities are other business activities that do not constitute an operating segment and as such, have been aggregated in the "Other" category 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 nine months and quarters ended September 30, 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 nine months and quarters ended September 30, 2012 and 2011, respectively, as well as total assets and capital expenditures at September 30, 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 nine months and quarters ended September 30, 2012 and 2011, respectively (amounts in thousands):
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Deposits - Restricted Deposits - Restricted Values (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Tax Deferred Exchange Proceeds | $ 17,555 | $ 53,668 |
Earnest Money On Acquisitions | 12,087 | 7,882 |
Restricted Deposits On Debt | 0 | 2,370 |
Restricted deposits on real estate investments | 44,201 | 43,970 |
Resident security and utility deposits | 42,495 | 40,403 |
Other Restricted Cash | 4,102 | 3,944 |
Restricted Cash and Cash Equivalents | $ 120,440 | $ 152,237 |
Reportable Segments (Tables)
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9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Reportable Segments (Tables) [Abstracts] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Segments Schedule |
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Reconciliation of NOI |
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Real Estate Real Estate Dispositions (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2012
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Sep. 30, 2011
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Sep. 30, 2012
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Sep. 30, 2011
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Disposed Properties | 20 | |||
Disposed Units | 5,337 | |||
Proceeds From Sale Of Property | $ 616,904 | |||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 103,394 | 76,864 | 307,447 | 759,100 |
Consolidated Rental Properties [Member]
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Disposed Properties | 20 | |||
Disposed Units | 5,337 | |||
Proceeds From Sale Of Property | $ 616,904 |
Reportable Segments (Details) (USD $)
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3 Months Ended | 9 Months Ended | |||
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Sep. 30, 2012
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Sep. 30, 2011
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Sep. 30, 2012
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Sep. 30, 2011
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Dec. 31, 2011
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Rental income: | |||||
Same store | $ 508,063,000 | $ 480,256,000 | $ 1,428,431,000 | $ 1,353,690,000 | |
Non-same store/other | 45,029,000 | 10,688,000 | 174,204,000 | 63,446,000 | |
Total rental income | 553,092,000 | 490,944,000 | 1,602,635,000 | 1,417,136,000 | |
Operating expenses: | |||||
Same store | 177,463,000 | 172,382,000 | 505,516,000 | 494,509,000 | |
Non-same store/other | 15,944,000 | 5,614,000 | 64,546,000 | 30,474,000 | |
Total operating expenses | 193,407,000 | 177,996,000 | 570,062,000 | 524,983,000 | |
NOI: | |||||
Same store | 330,600,000 | 307,874,000 | 922,915,000 | 859,181,000 | |
Non-same store/other | 29,085,000 | 5,074,000 | 109,658,000 | 32,972,000 | |
Total NOI | 359,685,000 | 312,948,000 | 1,032,573,000 | 892,153,000 | |
Total assets | 16,668,545,000 | 16,668,545,000 | 16,659,303,000 | ||
Segment Reporting Information, Expenditures for Additions to Long-Lived Assets | 114,535,000 | ||||
Reconciliation of NOI | |||||
Rental income | 553,092,000 | 490,944,000 | 1,602,635,000 | 1,417,136,000 | |
Property and maintenance expense | (110,679,000) | (101,712,000) | (325,071,000) | (300,362,000) | |
Real estate taxes and insurance expense | (64,235,000) | (57,109,000) | (182,222,000) | (162,430,000) | |
Property management expense | (18,493,000) | (19,175,000) | (62,769,000) | (62,191,000) | |
Total operating expenses | (193,407,000) | (177,996,000) | (570,062,000) | (524,983,000) | |
Reportable Segments (Textuals) [Abstract] | |||||
Units in same store properties | 105,902 | 102,241 | |||
Overhead Costs | 100,000 | 300,000 | |||
Northeast [Member]
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Rental income: | |||||
Same store | 190,140,000 | 180,074,000 | 530,972,000 | 502,724,000 | |
Non-same store/other | 21,399,000 | 6,034,000 | 76,922,000 | 33,937,000 | |
Total rental income | 211,539,000 | 186,108,000 | 607,894,000 | 536,661,000 | |
Operating expenses: | |||||
Same store | 66,289,000 | 64,479,000 | 190,952,000 | 185,770,000 | |
Non-same store/other | 7,318,000 | 1,926,000 | 23,636,000 | 11,799,000 | |
Total operating expenses | 73,607,000 | 66,405,000 | 214,588,000 | 197,569,000 | |
NOI: | |||||
Same store | 123,851,000 | 115,595,000 | 340,020,000 | 316,954,000 | |
Non-same store/other | 14,081,000 | 4,108,000 | 53,286,000 | 22,138,000 | |
Total NOI | 137,932,000 | 119,703,000 | 393,306,000 | 339,092,000 | |
Total assets | 6,945,739,000 | 6,945,739,000 | |||
Segment Reporting Information, Expenditures for Additions to Long-Lived Assets | 42,259,000 | ||||
Northwest [Member]
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Rental income: | |||||
Same store | 103,926,000 | 95,679,000 | 295,518,000 | 272,851,000 | |
Non-same store/other | 12,226,000 | 86,000 | 37,945,000 | 4,217,000 | |
Total rental income | 116,152,000 | 95,765,000 | 333,463,000 | 277,068,000 | |
Operating expenses: | |||||
Same store | 34,805,000 | 33,844,000 | 100,384,000 | 97,617,000 | |
Non-same store/other | 5,686,000 | 195,000 | 18,197,000 | 1,680,000 | |
Total operating expenses | 40,491,000 | 34,039,000 | 118,581,000 | 99,297,000 | |
NOI: | |||||
Same store | 69,121,000 | 61,835,000 | 195,134,000 | 175,234,000 | |
Non-same store/other | 6,540,000 | (109,000) | 19,748,000 | 2,537,000 | |
Total NOI | 75,661,000 | 61,726,000 | 214,882,000 | 177,771,000 | |
Total assets | 3,029,831,000 | 3,029,831,000 | |||
Segment Reporting Information, Expenditures for Additions to Long-Lived Assets | 27,337,000 | ||||
Southeast [Member]
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Rental income: | |||||
Same store | 93,609,000 | 89,056,000 | 264,709,000 | 253,202,000 | |
Non-same store/other | 1,400,000 | 468,000 | 14,667,000 | 9,764,000 | |
Total rental income | 95,009,000 | 89,524,000 | 279,376,000 | 262,966,000 | |
Operating expenses: | |||||
Same store | 36,949,000 | 34,437,000 | 103,333,000 | 100,102,000 | |
Non-same store/other | 788,000 | 154,000 | 5,793,000 | 3,528,000 | |
Total operating expenses | 37,737,000 | 34,591,000 | 109,126,000 | 103,630,000 | |
NOI: | |||||
Same store | 56,660,000 | 54,619,000 | 161,376,000 | 153,100,000 | |
Non-same store/other | 612,000 | 314,000 | 8,874,000 | 6,236,000 | |
Total NOI | 57,272,000 | 54,933,000 | 170,250,000 | 159,336,000 | |
Total assets | 2,358,093,000 | 2,358,093,000 | |||
Segment Reporting Information, Expenditures for Additions to Long-Lived Assets | 22,280,000 | ||||
Southwest [Member]
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Rental income: | |||||
Same store | 120,388,000 | 115,447,000 | 337,232,000 | 324,913,000 | |
Non-same store/other | 10,126,000 | 3,791,000 | 44,834,000 | 18,902,000 | |
Total rental income | 130,514,000 | 119,238,000 | 382,066,000 | 343,815,000 | |
Operating expenses: | |||||
Same store | 39,420,000 | 39,622,000 | 110,847,000 | 111,020,000 | |
Non-same store/other | 3,580,000 | 1,673,000 | 15,326,000 | 8,005,000 | |
Total operating expenses | 43,000,000 | 41,295,000 | 126,173,000 | 119,025,000 | |
NOI: | |||||
Same store | 80,968,000 | 75,825,000 | 226,385,000 | 213,893,000 | |
Non-same store/other | 6,546,000 | 2,118,000 | 29,508,000 | 10,897,000 | |
Total NOI | 87,514,000 | 77,943,000 | 255,893,000 | 224,790,000 | |
Total assets | 3,286,507,000 | 3,286,507,000 | |||
Segment Reporting Information, Expenditures for Additions to Long-Lived Assets | 21,732,000 | ||||
Other [Member]
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Rental income: | |||||
Same store | 0 | 0 | 0 | 0 | |
Non-same store/other | (122,000) | 309,000 | (164,000) | (3,374,000) | |
Total rental income | (122,000) | 309,000 | (164,000) | (3,374,000) | |
Operating expenses: | |||||
Same store | 0 | 0 | 0 | 0 | |
Non-same store/other | (1,428,000) | 1,666,000 | 1,594,000 | 5,462,000 | |
Total operating expenses | (1,428,000) | 1,666,000 | 1,594,000 | 5,462,000 | |
NOI: | |||||
Same store | 0 | 0 | 0 | 0 | |
Non-same store/other | 1,306,000 | (1,357,000) | (1,758,000) | (8,836,000) | |
Total NOI | 1,306,000 | (1,357,000) | (1,758,000) | (8,836,000) | |
Total assets | 1,048,375,000 | 1,048,375,000 | |||
Segment Reporting Information, Expenditures for Additions to Long-Lived Assets | $ 927,000 |