Subsequent Events/Other

6 Months Ended

Jun. 30, 2011

16. Subsequent Events/Other

Subsequent Events

Subsequent to June 30, 2011, the Company:

	•		Repaid $176.3 million in mortgage loans;

	•		Called for redemption its 3.85% convertible unsecured debt with a final maturity of 2026;

	•		Sold two properties containing 685 apartment units for $66.5 million; and

	•		Replaced its then existing unsecured revolving credit facility with a new $1.25 billion unsecured revolving credit facility maturing on July 13, 2014, subject to a one-year extension option exercisable by the Company. The interest rate on advances under the new credit facility will generally be LIBOR plus a spread (currently 1.15%) and the Company pays an annual facility fee of 0.2%. Both the spread and the facility fee are dependent on the credit rating of the Company’s long-term debt. ERPOP entered into the new revolving credit facility and EQR has guaranteed the revolving credit facility up to the maximum amount and for the full term of the facility. There is approximately $1.17 billion available on the new unsecured revolving credit facility as of July 28, 2011.

Other

During the six months ended June 30, 2011 and 2010, the Company incurred charges of $3.8 million and $4.0 million, respectively, related to property acquisition costs, such as survey, title and legal fees, on the acquisition of operating properties and $3.0 million and $2.0 million, respectively, related to the write-off of various pursuit and out-of-pocket costs for terminated acquisition, disposition and development transactions. These costs, totaling $6.8 million and $6.0 million, respectively, are included in other expenses in the accompanying consolidated statements of operations.

During the six months ended June 30, 2010, the Company received $5.2 million for the settlement of insurance/litigation claims, which are included in interest and other income in the accompanying consolidated statements of operations.

During the six months ended June 30, 2011, the Company disposed of its corporate housing business for a sales price of approximately $4.0 million, of which the Company provided $2.0 million of seller financing to the buyer. The Company recognized a net gain on the sale of approximately $1.0 million.

In 2010, a portion of the parking garage collapsed at one of the Company’s rental properties (Prospect Towers in Hackensack, New Jersey). The Company estimates that the costs related to such collapse (both expensed and capitalized), including providing for residents’ interim needs, lost revenue and garage reconstruction, will be approximately $14.0 million, after insurance reimbursements of $8.0 million. Costs to rebuild the garage are capitalized as incurred. Other costs, like those to accommodate displaced residents, lost revenue due to a portion of the project being temporarily unavailable for occupancy and legal costs, reduce earnings as they are incurred. Generally, insurance proceeds are recorded as increases to earnings as they are received. During the six months ended June 30, 2011, the Company received approximately $1.6 million in insurance proceeds which offset expenses of $1.3 million that were recorded relating to this loss and are included in real estate taxes and insurance on the consolidated statements of operations.