Debt

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Debt

9.Debt

EQR does not have any indebtedness as all debt is incurred by the Operating Partnership. Weighted average interest rates noted below for the nine months ended September 30, 2023 include the effect of any derivative instruments and amortization of premiums/discounts/OCI (other comprehensive income) on debt and derivatives.

Mortgage Notes Payable

The following table summarizes the Company’s mortgage notes payable activity for the nine months ended September 30, 2023 (amounts in thousands):

	Mortgage notes payable, net as of December 31, 2022		Proceeds			Assumptions			Lump sum payoffs				Scheduled principal repayments			Amortization of premiums/ discounts		Amortization of deferred financing costs, net (1)			Mortgage notes payable, net as of September 30, 2023
Fixed Rate Debt:
Secured – Conventional	$	1,608,838	$	550,000	(2)	$	42,256	(3)	$	(800,000	)	(2)	$	—		$	200	$	(3,324	)	$	1,397,970
Floating Rate Debt:
Secured – Conventional		108,378		22,896			—			(132,598	)			(54	)		—		1,378			—
Secured – Tax Exempt		236,222		—			—			—				(500	)		929		105			236,756
Floating Rate Debt		344,600		22,896			—			(132,598	)			(554	)		929		1,483			236,756
Total	$	1,953,438	$	572,896		$	42,256		$	(932,598	)		$	(554	)	$	1,129	$	(1,841	)	$	1,634,726

(1)Represents amortization of deferred financing costs, net of debt financing costs.

(2)Obtained $200.0 million of 5.18% fixed rate mortgage debt maturing in September 2033 and $350.0 million of 5.25% fixed rate mortgage debt maturing in September 2033. The secured notes totaling $550.0 million have an all-in effective interest rate of approximately 4.7%. The proceeds from these loans were used, along with funding from the Company’s commercial paper note program, to repay $800.0 million of 4.21% fixed rate mortgage debt that was due to mature in November 2023.

(3)Assumed $53.5 million of 2.24% fixed rate mortgage debt maturing in September 2030 on one acquired property and recorded an initial discount of approximately $11.2 million.

The following table summarizes certain interest rate and maturity date information as of and for the nine months ended September 30, 2023:

	September 30, 2023
Interest Rate Ranges (ending)	0.10% - 5.25%
Weighted Average Interest Rate	3.64%
Maturity Date Ranges	2029-2061

As of September 30, 2023, the Company had $249.5 million of secured tax-exempt bonds subject to third-party credit enhancement.

Notes

The following table summarizes the Company’s notes activity for the nine months ended September 30, 2023 (amounts in thousands):

	Notes, net as of December 31, 2022		Proceeds		Lump sum payoffs		Amortization of premiums/ discounts		Amortization of deferred financing costs, net (1)		Notes, net as of September 30, 2023
Fixed Rate Debt:
Unsecured – Public	$	5,342,329	$	—	$	—	$	1,686	$	2,880	$	5,346,895

(1)Represents amortization of deferred financing costs, net of debt financing costs.

The following table summarizes certain interest rate and maturity date information as of and for the nine months ended September 30, 2023:

	September 30, 2023
Interest Rate Ranges (ending)	1.85% - 7.57%
Weighted Average Interest Rate	3.52%
Maturity Date Ranges	2025-2047

The Company’s unsecured public notes contain certain financial and operating covenants including, among other things, maintenance of certain financial ratios. The Company was in compliance with its unsecured public debt covenants for the nine months ended September 30, 2023.

Line of Credit and Commercial Paper

The Company has a $2.5 billion unsecured revolving credit facility maturing on October 26, 2027. The Company has the ability to increase available borrowings by an additional $750.0 million by adding lenders to the facility, obtaining the agreement of existing lenders to increase their commitments or incurring one or more term loans. The interest rate on advances under the facility will generally be the Secured Overnight Financing Rate ("SOFR") plus a spread (currently 0.725%), or based on bids received from the lending group, and the Company pays an annual facility fee (currently 0.125%). Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating. The Company did not borrow any amounts under its revolving credit facility during the nine months ended September 30, 2023.

The Company has an unsecured commercial paper note program under which it may borrow up to a maximum of $1.0 billion subject to market conditions. The notes will be sold under customary terms in the United States commercial paper note market and will rank pari passu with all of the Company’s other unsecured senior indebtedness.

The following table summarizes certain weighted average interest rate, maturity and amount outstanding information for the commercial paper program as of and for the nine months ended September 30, 2023:

	September 30, 2023
Weighted Average Interest Rate (1)	5.36%
Weighted Average Maturity (in days)	31
Weighted Average Amount Outstanding	$236.4 million

(1)The notes bear interest at various floating rates.

The Company limits its utilization of the revolving credit facility in order to maintain liquidity to support its $1.0 billion commercial paper program along with certain other obligations. The following table presents the availability on the Company’s unsecured revolving credit facility as of September 30, 2023 (amounts in thousands):

	September 30, 2023
Unsecured revolving credit facility commitment	$	2,500,000
Commercial paper balance outstanding		(500,005	)
Unsecured revolving credit facility balance outstanding		—
Other restricted amounts		(3,415	)
Unsecured revolving credit facility availability	$	1,996,580

Other

The following table summarizes the Company's total debt extinguishment costs recorded as additional expense for the nine months and quarters ended September 30, 2023 and 2022 (amounts in thousands):

	Nine Months Ended September 30,				Quarter Ended September 30,
	2023		2022		2023		2022
Write-offs of unamortized deferred financing costs	$	1,143	$	369	$	1,096	$	277
Write-offs of unamortized (premiums)/discounts/OCI		—		3,947		—		3,570
Total	$	1,143	$	4,316	$	1,096	$	3,847