CHICAGO--(BUSINESS WIRE)--February 4, 2009--Equity Residential (NYSE: EQR) today reported results for the quarter and year ended December 31, 2008. All per share results are reported on a fully-diluted basis.

“Our 2008 operating results were in line with our expectations due mostly to strong property performance in the first nine months of the year since we did not begin to feel the full impact of the slowing economy and mounting job losses until later in the year,” said David J. Neithercut, Equity Residential’s President and CEO. “2009 will be a challenging year as job losses are expected to continue, further weakening pricing power across our markets. Looking longer term, however, we are excited about our prospects because there is virtually no new product in the development pipeline and the demographic picture is very favorable for apartment fundamentals.”

For the fourth quarter 2008, the company reported a loss of $0.13 per share compared to earnings of $0.44 per share in the fourth quarter of 2007. The difference is primarily due to a previously announced development-related impairment charge of $116.4 million, or $0.40 per share, as well as lower gains from property sales caused by lower property sales volume in 2008.

Funds from Operations (FFO) for the quarter ended December 31, 2008 were $0.29 per share compared to $0.67 per share in the same period of 2007. The company’s pre-impairment FFO was $0.69 per share, approximately $0.07 per share above the midpoint of the company’s guidance range provided on October 29, 2008 and primarily attributable to the following:

For the year ended December 31, 2008, the company reported earnings of $1.49 per share compared to $3.39 per share for 2007.

FFO for the year ended December 31, 2008 was $2.18 per share compared to $2.39 per share in the same period of 2007. The company’s pre-impairment FFO for the full year was $2.58 per share.

On a same store fourth quarter to fourth quarter comparison, which includes 123,543 apartment units, revenues increased 2.4%, expenses increased 1.8% and NOI increased 2.8%. The increase in same store revenues was driven primarily by an increase in average rental rates.

On a same store year over year comparison, which includes 115,051 apartment units, revenues increased 3.2%, expenses increased 2.2% and NOI increased 3.8%. The increase in same store revenues was driven primarily by an increase in average rental rates.

During the fourth quarter 2008, the company acquired one property, consisting of 304 units, for a purchase price of $43.8 million at a stabilized capitalization (cap) rate of 5.6%. The company contracted in 2006 to purchase this recently completed Phoenix, Arizona property in a pre-sale arrangement.

Also during the quarter, the company sold seven properties, consisting of 1,332 apartment units, for an aggregate sale price of $89.7 million at an average cap rate of 6.7% generating an unlevered internal rate of return (IRR) of 10.3%. In addition, the company sold 32 condominium units for an aggregate sale price of $4.5 million.

During 2008, the company acquired seven properties, consisting of 2,141 apartment units, for an aggregate purchase price of $380.7 million at an average cap rate of 5.9%, as well as an uncompleted development property for a purchase price of $31.7 million.

Also during 2008, the company sold 41 properties, consisting of 10,127 apartment units, for an aggregate sale price of $896.7 million at an average cap rate of 5.9% generating an unlevered IRR of 10.6%. In addition, the company sold 130 condominium units for an aggregate sale price of $26.1 million and one land parcel for $3.3 million.

On December 23, 2008, the company announced that it closed a $543.0 million secured loan from Fannie Mae (NYSE: FNM). The loan is interest only and matures in eight years with the first seven years fixed and the last year at a floating rate of interest. The all-in effective interest rate is approximately 6%. Including the above mentioned loan, during 2008 the company borrowed approximately $1.6 billion in secured debt proceeds from Fannie Mae and Freddie Mac (NYSE: FRE) at a weighted average rate of approximately 5.7% for an average fixed rate term of approximately nine years.

The company used approximately $445.7 million in cash on hand from the secured loans referenced above to repurchase and retire approximately $464.4 million of various unsecured notes with maturities through 2011 both through open market transactions and a public tender. This activity included the company’s repurchase of approximately $174.0 million of these notes through December 31, 2008 and approximately $290.4 million of these notes during 2009. In total, this resulted in debt extinguishment gains to the company of approximately $18.7 million, all of which were recognized in 2008. Details of these transactions can be found on page 17 of this release.

The agency loans and debt repurchases are a continuation of the company’s strategy to proactively address its debt maturities and wholly-owned development funding needs. At December 31, 2008, the company had approximately $1.02 billion of unrestricted cash and federally insured investment deposits (approximately $129.0 million of which are classified as "Other assets" on the balance sheet) and approximately $1.3 billion available on its unsecured revolving credit facility. After the recent debt repurchases, the company currently has approximately $515.0 million of unrestricted cash and federally insured investment deposits and approximately $1.3 billion available on its unsecured revolving credit facility. The company’s total outstanding indebtedness is currently approximately $10.2 billion. The company has sufficient liquidity, between its line of credit and cash on hand, to meet its funding needs into 2011.

The company has established an FFO guidance range of $0.53 to $0.58 per share for the first quarter of 2009.

The difference between the company’s pre-impairment fourth quarter 2008 FFO of $0.69 per share and the midpoint of the first quarter 2009 FFO guidance range is primarily a result of the following:

The company has established an FFO guidance range of $2.00 to $2.30 per share for the full year 2009. The assumptions underlying this guidance can be found on page 26 of this release.

The difference between the company’s pre-impairment full year 2008 FFO of $2.58 per share and the midpoint of the company’s guidance range for full year 2009 FFO is primarily a result of the following:

Equity Residential expects to announce first quarter 2009 results on Wednesday, April 29, 2009 and host a conference call to discuss those results at 10:00 a.m. CT on Thursday, April 30, 2009.

Equity Residential is an S&P 500 company focused on the acquisition, development and management of high quality apartment properties in top U.S. growth markets. Equity Residential owns or has investments in 548 properties located in 23 states and the District of Columbia, consisting of 147,244 apartment units. For more information on Equity Residential, please visit our website at www.equityresidential.com.

In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential’s management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, competition and local government regulation. Other risks and uncertainties are described under the heading “Risk Factors” in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityresidential.com. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

A live web cast of the company’s conference call discussing these results and outlook for 2009 will take place tomorrow, Thursday, February 5, at 10:00 a.m. Central. Please visit the Investor Information section of the company’s web site at www.equityresidential.com for the link. A replay of the web cast will be available for two weeks at this site.


Equity Residential
Consolidated Statements of Operations
(Amounts in thousands except per share data)


			Year Ended December 31,						Quarter Ended December 31,
			2008			2007			2008			2007
REVENUES
	Rental income		$	2,092,489		$	1,937,874		$	530,027		$	502,771
	Fee and asset management			10,715			9,183			3,318			2,246

		Total revenues		2,103,204			1,947,057			533,345			505,017

EXPENSES
	Property and maintenance			542,371			505,899			132,670			128,697
	Real estate taxes and insurance			217,461			195,359			55,519			46,530
	Property management			77,063			87,476			17,476			18,499
	Fee and asset management			7,981			8,412			1,827			1,808
	Depreciation			591,162			562,290			154,639			143,277
	General and administrative			44,951			46,767			10,911			13,585
	Impairment			122,103			1,726			119,247			706

		Total expenses		1,603,092			1,407,929			492,289			353,102

Operating income				500,112			539,128			41,056			151,915

	Interest and other income			33,540			20,144			22,481			7,815
	Interest:
		Expense incurred, net		(479,101	)		(482,819	)		(124,065	)		(122,612	)
		Amortization of deferred financing costs		(9,701	)		(10,121	)		(2,950	)		(2,268	)

Income (loss) before income and other taxes, allocation to Minority Interests,
	(loss) income from investments in unconsolidated entities, net gain on sales
	of unconsolidated entities and land parcels and discontinued operations			44,850			66,332			(63,478	)		34,850
Income and other tax (expense) benefit				(5,286	)		(2,520	)		653			(1,053	)
Allocation to Minority Interests:
	Operating Partnership, net			(1,735	)		(2,663	)		3,773			(1,935	)
	Preference Interests and Units			(15	)		(441	)		(4	)		(4	)
	Partially Owned Properties			(2,650	)		(2,200	)		(885	)		(1,203	)
(Loss) income from investments in unconsolidated entities				(107	)		332			(167	)		147
Net gain on sales of unconsolidated entities				2,876			2,629			2,876			-
Net gain on sales of land parcels				2,976			6,360			-			1,130
Income (loss) from continuing operations, net of minority interests				40,909			67,829			(57,232	)		31,932
Discontinued operations, net of minority interests				379,183			921,793			25,989			91,345
Net income (loss)				420,092			989,622			(31,243	)		123,277
Preferred distributions				(14,507	)		(22,792	)		(3,620	)		(3,635	)
Premium on redemption of Preferred Shares				-			(6,154	)		-			(10	)
Net income (loss) available to Common Shares			$	405,585		$	960,676		$	(34,863	)	$	119,632

Earnings per share – basic:
Income (loss) from continuing operations available to Common Shares			$	0.10		$	0.14		$	(0.22	)	$	0.11
Net income (loss) available to Common Shares			$	1.50		$	3.44		$	(0.13	)	$	0.44
Weighted average Common Shares outstanding				270,012			279,406			271,293			269,197

Earnings per share – diluted:
Income (loss) from continuing operations available to Common Shares			$	0.10		$	0.14		$	(0.22	)	$	0.10
Net income (loss) available to Common Shares			$	1.49		$	3.39		$	(0.13	)	$	0.44
Weighted average Common Shares outstanding				290,060			302,235			271,293			290,658

Distributions declared per Common Share outstanding			$	1.93		$	1.87		$	0.4825		$	0.4825


Equity Residential
Consolidated Statements of Funds From Operations
(Amounts in thousands except per share data)


			Year Ended December 31,						Quarter Ended December 31,
			2008			2007			2008			2007

Net income (loss)			$	420,092		$	989,622		$	(31,243	)	$	123,277
Allocation to Minority Interests – Operating Partnership, net				1,735			2,663			(3,773	)		1,935
Adjustments:
		Depreciation		591,162			562,290			154,639			143,277
		Depreciation – Non-real estate additions		(8,269	)		(8,279	)		(2,212	)		(2,142	)
		Depreciation – Partially Owned and Unconsolidated Properties		4,157			4,379			1,054			1,117
		Net gain on sales of unconsolidated entities		(2,876	)		(2,629	)		(2,876	)		-
		Discontinued operations:
		Depreciation		11,746			54,124			333			7,102
		Gain on sales of discontinued operations, net of minority interests		(368,382	)		(873,767	)		(26,181	)		(80,041	)
		Net incremental (loss) gain on sales of condominium units		(3,932	)		20,771			(1,289	)		1,998
		Minority Interests – Operating Partnership		718			3,256			(12	)		774

FFO (1) (2)				646,151			752,430			88,440			197,297
Preferred distributions				(14,507	)		(22,792	)		(3,620	)		(3,635	)
Premium on redemption of Preferred Shares				-			(6,154	)		-			(10	)

FFO available to Common Shares and OP Units – basic (1) (2)			$	631,644		$	723,484		$	84,820		$	193,652

FFO available to Common Shares and OP Units – diluted (1) (2)			$	632,307		$	724,255		$	84,820		$	193,835

FFO per share and OP Unit – basic			$	2.20		$	2.42		$	0.29		$	0.67

FFO per share and OP Unit – diluted			$	2.18		$	2.39		$	0.29		$	0.67

Weighted average Common Shares and
		OP Units outstanding – basic		287,630			298,392			288,251			287,728

Weighted average Common Shares and
		OP Units outstanding – diluted		290,487			302,732			289,511			291,129


(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 of depreciable property, 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 units to condominiums, it simultaneously discontinues depreciation of such property. FFO available to Common Shares and OP Units is calculated on a basis consistent with net income available to Common Shares and reflects adjustments to net income for preferred distributions and premiums on redemption of preferred shares 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 "Minority Interests - Operating Partnership". Subject to certain restrictions, the Minority Interests - Operating Partnership may exchange their OP Units for EQR Common Shares on a one-for-one basis.

(2	)	The Company believes that FFO and FFO available to Common Shares and OP 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 OP Units can help compare the operating performance of a company's real estate between periods or as compared to different companies. FFO and FFO available to Common Shares and OP Units do not represent net income, net income available to Common Shares or net cash flows from operating activities in accordance with GAAP. Therefore, FFO and FFO available to Common Shares and OP Units should not be exclusively considered as alternatives to net income, net income available to Common Shares or net cash flows from operating activities as determined by GAAP or as a measure of liquidity. The Company's calculation of FFO and FFO available to Common Shares and OP 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.


Equity Residential
Consolidated Balance Sheets
(Amounts in thousands except for share amounts)


			December 31,			December 31,
			2008			2007
ASSETS
Investment in real estate
	Land		$	3,671,299		$	3,607,305
	Depreciable property			13,908,594			13,556,681
	Projects under development			855,473			828,530
	Land held for development			254,873			340,834
Investment in real estate				18,690,239			18,333,350
	Accumulated depreciation			(3,561,300	)		(3,170,125	)
Investment in real estate, net				15,128,939			15,163,225

Cash and cash equivalents				890,794			50,831
Investments in unconsolidated entities				5,795			3,547
Deposits – restricted				152,372			253,276
Escrow deposits – mortgage				19,729			20,174
Deferred financing costs, net				53,817			56,271
Other assets				283,664			142,453
		Total assets	$	16,535,110		$	15,689,777

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
	Mortgage notes payable		$	5,036,930		$	3,605,971
	Notes, net			5,464,316			5,763,762
	Lines of credit			-			139,000
	Accounts payable and accrued expenses			108,463			109,385
	Accrued interest payable			113,846			124,717
	Other liabilities			289,562			322,975
	Security deposits			64,355			62,159
	Distributions payable			141,843			141,244
		Total liabilities		11,219,315			10,269,213

Commitments and contingencies
Minority Interests:
	Operating Partnership			292,797			331,626
	Preference Interests and Units			184			184
	Partially Owned Properties			25,520			26,236
		Total Minority Interests		318,501			358,046

Shareholders' equity:
	Preferred Shares of beneficial interest, $0.01 par value;
		100,000,000 shares authorized; 1,951,475 shares issued
		and outstanding as of December 31, 2008 and 1,986,475
		shares issued and outstanding as of December 31, 2007		208,786			209,662
	Common Shares of beneficial interest, $0.01 par value;
		1,000,000,000 shares authorized; 272,786,760 shares issued
		and outstanding as of December 31, 2008 and 269,554,661
		shares issued and outstanding as of December 31, 2007		2,728			2,696
	Paid in capital			4,340,138			4,266,538
	Retained earnings			481,441			599,504
	Accumulated other comprehensive loss			(35,799	)		(15,882	)
		Total shareholders' equity		4,997,294			5,062,518
		Total liabilities and shareholders' equity	$	16,535,110		$	15,689,777


Equity Residential
Portfolio Summary
As of December 31, 2008


					% of 2009	Average
				% of	Stabilized	Rental
	Markets	Properties	Units	Total Units	NOI	Rate (1)

1	New York Metro Area	22	6,246	4.2%	10.0%	$ 2,748
2	DC Northern Virginia	26	8,781	6.0%	8.8%	1,637
3	South Florida	39	12,897	8.8%	8.4%	1,270
4	Los Angeles	38	7,749	5.3%	7.8%	1,777
5	Seattle/Tacoma	49	11,138	7.6%	7.5%	1,330
6	San Francisco Bay Area	34	6,731	4.6%	6.5%	1,709
7	Boston	37	6,217	4.2%	6.4%	1,962
8	Phoenix	42	12,084	8.2%	5.3%	902
9	Denver	25	8,606	5.8%	5.0%	1,019
10	San Diego	14	4,491	3.1%	4.4%	1,655
11	Orlando	26	8,042	5.5%	4.3%	1,021
12	Atlanta	29	8,882	6.0%	3.9%	944
13	Inland Empire, CA	15	4,655	3.2%	3.7%	1,362
14	Suburban Maryland	21	5,559	3.8%	3.4%	1,180
15	Orange County, CA	10	3,307	2.2%	3.3%	1,597
16	New England (excluding Boston)	32	4,769	3.2%	2.5%	1,106
17	Portland, OR	11	3,713	2.5%	1.9%	959
18	Jacksonville	12	3,951	2.7%	1.7%	868
19	Dallas/Ft. Worth	14	3,427	2.3%	1.4%	936
20	Tampa	11	3,414	2.3%	1.3%	909
	Top 20 Total	507	134,659	91.5%	97.5%	1,344

21	Raleigh/Durham	12	3,058	2.1%	1.3%	818
22	Central Valley, CA	8	1,343	0.9%	0.6%	1,090
23	Other EQR	15	3,318	2.2%	0.6%	907
	Total	542	142,378	96.7%	100.0%	1,320

	Condominium Conversion	4	157	0.1%	-	-
	Military Housing	2	4,709	3.2%	-	-
	Grand Total	548	147,244	100.0%	100.0%	$ 1,320

(1) Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the month of December 2008.


Equity Residential

Portfolio as of December 31, 2008

								Properties		Units

				Wholly Owned Properties				477			127,002
				Partially Owned Properties:
					Consolidated			28			5,757
					Unconsolidated			41			9,776
				Military Housing (Fee Managed)				2			4,709

								548			147,244


Portfolio Rollforward Q4 2008
($ in thousands)
										Purchase/
										(Sale)			Cap
						Properties		Units		Price			Rate

					9/30/2008	554		147,326

Acquisitions:
		Rental Properties				1		304		$	43,820		5.6	%
		Military Housing (Fee Managed) (1)				1		978
Dispositions:
		Rental Properties:
			Consolidated			(4	)	(662	)	$	(55,100	)	6.7	%
			Unconsolidated (2)			(3	)	(670	)	$	(34,600	)	6.7	%
		Condominium Conversion Properties				(1	)	(32	)	$	(4,457	)

					12/31/2008	548		147,244


Portfolio Rollforward 2008
($ in thousands)
										Purchase/
										(Sale)			Cap
						Properties		Units		Price			Rate

					12/31/2007	579		152,821

Acquisitions:
		Rental Properties				7		2,141		$	380,683		5.9	%
		Uncompleted Developments (3)				-		-		$	31,705
		Military Housing (Fee Managed) (1)				1		978
Dispositions:
		Rental Properties:
			Consolidated			(38	)	(9,457	)	$	(862,099	)	5.8	%	}	5.9% combined
			Unconsolidated (2)			(3	)	(670	)	$	(34,600	)	6.7	%	}	5.9% combined
		Condominium Conversion Properties				(4	)	(130	)	$	(26,101	)
		Land Parcel (one)				-		-		$	(3,300	)
Completed Developments						6		1,558
Configuration Changes						-		3

					12/31/2008	548		147,244


(1	)	The Company assumed management of 978 housing units at McChord Air Force Base in Washington state and invested $2.4 million towards its redevelopment. McChord AFB adjoins Ft. Lewis, a U.S. Army base at which the Company already manages 3,731 units.

(2	)	ERPOP owned a 25% interest in these unconsolidated rental properties. Sale price listed is the gross sale price.

(3	)	Represents the acquisition of Mosaic at Metro in Hyattsville, Maryland. See the Consolidated Development Projects schedule for further information.


Equity Residential


Fourth Quarter 2008 vs. Fourth Quarter 2007
Quarter over Quarter Same Store Results/Statistics
$ in thousands (except for Average Rental Rate) - 123,543 Same Store Units

			Results									Statistics
												Average
												Rental
Description			Revenues			Expenses			NOI (1)			Rate (2)			Occupancy		Turnover

Q4 2008			$	475,375		$	171,320		$	304,055		$	1,362		94.3	%	15.4	%
Q4 2007			$	464,102		$	168,340		$	295,762		$	1,329		94.4	%	14.7	%

Change			$	11,273		$	2,980		$	8,293		$	33		(0.1	%)	0.7	%

Change				2.4	%		1.8	%		2.8	%		2.5	%




Fourth Quarter 2008 vs. Third Quarter 2008
Sequential Quarter over Quarter Same Store Results/Statistics
$ in thousands (except for Average Rental Rate) - 128,104 Same Store Units

			Results									Statistics
												Average
												Rental
Description			Revenues			Expenses			NOI (1)			Rate (2)			Occupancy		Turnover

Q4 2008			$	492,717		$	178,803		$	313,914		$	1,363		94.2	%	15.4	%
Q3 2008			$	495,049		$	182,548		$	312,501		$	1,366		94.4	%	18.6	%

Change			$	(2,332	)	$	(3,745	)	$	1,413		$	(3	)	(0.2	%)	(3.2	%)

Change				(0.5	%)		(2.1	%)		0.5	%		(0.2	%)




2008 vs. 2007
Year over Year Same Store Results/Statistics
$ in thousands (except for Average Rental Rate) - 115,051 Same Store Units

			Results									Statistics
												Average
												Rental
Description			Revenues			Expenses			NOI (1)			Rate (2)			Occupancy		Turnover

2008			$	1,739,004		$	632,366		$	1,106,638		$	1,334		94.5	%	63.5	%
2007			$	1,685,196		$	618,882		$	1,066,314		$	1,292		94.6	%	63.6	%

Change			$	53,808		$	13,484		$	40,324		$	42		(0.1	%)	(0.1	%)

Change				3.2	%		2.2	%		3.8	%		3.3	%


(1	)	The Company's primary financial measure for evaluating each of its apartment communities is net operating income ("NOI"). NOI represents rental income less property and maintenance expense, real estate tax and insurance expense, and property management expense. The Company believes that NOI is helpful to investors as a supplemental measure of the operating performance of a real estate company because it is a direct measure of the actual operating results of the Company's apartment communities.

(2	)	Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period.


Equity Residential


Same Store NOI Reconciliation
Fourth Quarter 2008 vs. Fourth Quarter 2007

The following table presents a reconciliation of operating income per the consolidated statements of operations to NOI for the Fourth Quarter 2008 Same Store Properties:

		Quarter Ended December 31,
			2008			2007
		(Amounts in thousands)

Operating income		$	41,056		$	151,915
Adjustments:
	Non-same store operating results		(20,307	)		(13,283	)
	Fee and asset management revenue		(3,318	)		(2,246	)
	Fee and asset management expense		1,827			1,808
	Depreciation		154,639			143,277
	General and administrative		10,911			13,585
	Impairment		119,247			706

Same store NOI		$	304,055		$	295,762




Same Store NOI Reconciliation
2008 vs. 2007

The following table presents a reconciliation of operating income per the consolidated statements of operations to NOI for the 2008 Same Store Properties:

		Year Ended December 31,
			2008			2007
		(Amounts in thousands)

Operating income		$	500,112		$	539,128
Adjustments:
	Non-same store operating results		(148,956	)		(82,826	)
	Fee and asset management revenue		(10,715	)		(9,183	)
	Fee and asset management expense		7,981			8,412
	Depreciation		591,162			562,290
	General and administrative		44,951			46,767
	Impairment		122,103			1,726

Same store NOI		$	1,106,638		$	1,066,314


Equity Residential
Fourth Quarter 2008 vs. Fourth Quarter 2007
Same Store Results by Market


										Increase (Decrease) from Prior Year's Quarter
					Q4 2008		Q4 2008	Q4 2008
					% of		Average	Weighted								Average
					Actual		Rental	Average								Rental
			Markets	Units	NOI		Rate (1)	Occupancy %		Revenues		Expenses		NOI		Rate (1)		Occupancy

1			New York Metro Area	6,246	10.6	%	$ 2,773	95.9	%	3.9	%	5.9	%	2.9	%	3.1	%	0.9	%
2			South Florida	11,761	8.3	%	1,294	93.0	%	0.2	%	(4.0	%)	3.3	%	(0.6	%)	0.7	%
3			DC Northern Virginia	7,661	8.2	%	1,672	95.2	%	3.6	%	4.1	%	3.4	%	3.2	%	0.3	%
4			Los Angeles	6,863	7.7	%	1,779	94.1	%	3.1	%	3.9	%	2.7	%	3.3	%	(0.2	%)
5			Seattle/Tacoma	8,708	7.5	%	1,399	94.2	%	6.9	%	3.8	%	8.5	%	6.8	%	0.1	%
6			San Francisco Bay Area	6,364	6.9	%	1,728	94.9	%	6.7	%	4.7	%	7.7	%	7.2	%	(0.4	%)
7			Boston	5,805	6.5	%	1,909	94.8	%	2.5	%	(2.0	%)	5.4	%	3.5	%	(0.9	%)
8			Phoenix	10,238	5.3	%	903	93.9	%	(3.2	%)	3.6	%	(6.9	%)	(3.0	%)	(0.2	%)
9			Denver	8,059	5.1	%	1,023	94.0	%	3.9	%	1.9	%	4.8	%	5.1	%	(1.1	%)
10			San Diego	4,262	4.4	%	1,681	93.1	%	2.8	%	7.2	%	0.6	%	5.0	%	(1.9	%)
11			Orlando	7,525	4.3	%	1,020	93.4	%	(2.6	%)	0.6	%	(4.5	%)	(2.2	%)	(0.3	%)
12			Atlanta	7,698	4.2	%	982	94.6	%	0.4	%	0.4	%	0.3	%	0.6	%	(0.3	%)
13			Inland Empire, CA	4,355	3.7	%	1,380	94.6	%	2.0	%	2.2	%	1.9	%	1.0	%	1.0	%
14			Orange County, CA	3,175	3.4	%	1,616	95.4	%	2.8	%	(4.0	%)	5.9	%	2.4	%	0.3	%
15			New England (excluding Boston)	4,769	2.7	%	1,116	94.1	%	1.0	%	2.9	%	(0.5	%)	1.0	%	0.0	%
16			Suburban Maryland	3,687	2.6	%	1,192	94.1	%	5.1	%	(5.4	%)	12.2	%	5.0	%	0.0	%
17			Portland, OR	3,409	2.0	%	987	95.4	%	4.8	%	0.2	%	7.7	%	5.2	%	(0.4	%)
18			Jacksonville	3,231	1.5	%	878	93.2	%	(5.5	%)	1.8	%	(10.0	%)	(4.3	%)	(1.2	%)
19			Dallas/Ft. Worth	2,601	1.4	%	1,010	95.0	%	5.0	%	3.1	%	6.4	%	4.0	%	0.9	%
20			Raleigh/Durham	2,666	1.3	%	843	95.1	%	2.4	%	1.3	%	3.1	%	2.1	%	0.2	%

			Top 20 Markets	119,083	97.6	%	1,376	94.3	%	2.5	%	1.8	%	2.9	%	2.6	%	(0.1	%)
			All Other Markets	4,460	2.4	%	996	94.0	%	0.6	%	1.8	%	(0.3	%)	0.1	%	0.4	%

			Total	123,543	100.0	%	$ 1,362	94.3	%	2.4	%	1.8	%	2.8	%	2.5	%	(0.1	%)

(1	)	Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period.


Equity Residential
Fourth Quarter 2008 vs. Third Quarter 2008
Sequential Same Store Results by Market


											Increase (Decrease) from Prior Quarter
					Q4 2008		Q4 2008		Q4 2008
					% of		Average		Weighted								Average
					Actual		Rental		Average								Rental
			Markets	Units	NOI		Rate (1)		Occupancy %		Revenues		Expenses		NOI		Rate (1)		Occupancy

1			New York Metro Area	6,246	10.2	%	$	2,773	95.9	%	(0.7	%)	3.9	%	(3.0	%)	(0.8	%)	0.2	%
2			DC Northern Virginia	8,781	9.0	%		1,656	94.9	%	(0.5	%)	0.7	%	(1.1	%)	0.2	%	(0.7	%)
3			South Florida	12,465	8.5	%		1,294	93.0	%	(1.0	%)	(2.1	%)	(0.2	%)	(0.8	%)	(0.2	%)
4			Los Angeles	7,442	7.9	%		1,794	94.2	%	0.3	%	(1.0	%)	0.9	%	0.1	%	0.1	%
5			Seattle/Tacoma	8,708	7.2	%		1,399	94.2	%	(1.4	%)	(4.9	%)	0.5	%	(0.8	%)	(0.6	%)
6			San Francisco Bay Area	6,364	6.7	%		1,728	94.9	%	0.4	%	(3.1	%)	2.2	%	0.5	%	(0.2	%)
7			Boston	5,805	6.3	%		1,909	94.8	%	1.0	%	0.5	%	1.2	%	2.0	%	(1.0	%)
8			Phoenix	10,646	5.4	%		906	93.8	%	(0.8	%)	(5.3	%)	2.2	%	(1.6	%)	0.8	%
9			Denver	8,059	5.0	%		1,023	94.0	%	(0.7	%)	(8.0	%)	3.2	%	0.2	%	(0.9	%)
10			San Diego	4,491	4.4	%		1,677	93.1	%	(0.6	%)	3.3	%	(2.4	%)	1.1	%	(1.6	%)
11			Orlando	7,525	4.2	%		1,020	93.4	%	(1.4	%)	(4.9	%)	1.1	%	(1.1	%)	(0.2	%)
12			Atlanta	7,698	4.0	%		982	94.6	%	(1.0	%)	(6.3	%)	3.1	%	(0.8	%)	(0.2	%)
13			Inland Empire, CA	4,355	3.6	%		1,380	94.6	%	1.7	%	(5.7	%)	6.0	%	0.0	%	1.6	%
14			Orange County, CA	3,175	3.3	%		1,616	95.4	%	0.3	%	(4.7	%)	2.5	%	(0.8	%)	1.0	%
15			Suburban Maryland	4,455	2.9	%		1,192	93.5	%	(1.6	%)	1.5	%	(3.5	%)	(0.8	%)	(0.8	%)
16			New England (excluding Boston)	4,769	2.6	%		1,116	94.1	%	(0.4	%)	1.1	%	(1.6	%)	(0.1	%)	(0.3	%)
17			Portland, OR	3,409	1.9	%		987	95.4	%	0.8	%	(5.0	%)	4.4	%	0.0	%	0.7	%
18			Jacksonville	3,711	1.8	%		895	93.2	%	(2.7	%)	(5.0	%)	(1.1	%)	(1.9	%)	(0.8	%)
19			Dallas/Ft. Worth	2,601	1.4	%		1,010	95.0	%	(0.9	%)	(3.7	%)	1.3	%	0.0	%	(0.8	%)
20			Tampa	2,854	1.3	%		929	93.9	%	(2.3	%)	(2.6	%)	(2.0	%)	(2.2	%)	0.0	%

			Top 20 Markets	123,559	97.6	%		1,378	94.2	%	(0.5	%)	(2.1	%)	0.4	%	(0.3	%)	(0.2	%)
			All Other Markets	4,545	2.4	%		952	94.7	%	0.5	%	(1.9	%)	2.0	%	0.3	%	0.2	%

			Total	128,104	100.0	%	$	1,363	94.2	%	(0.5	%)	(2.1	%)	0.5	%	(0.2	%)	(0.2	%)

(1	)	Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period.


Equity Residential
2008 vs. 2007
Same Store Results by Market


											Increase (Decrease) from Prior Year
					2008		2008		2008
					% of		Average		Weighted								Average
					Actual		Rental		Average								Rental
			Markets	Units	NOI		Rate (1)		Occupancy %		Revenues		Expenses		NOI		Rate (1)		Occupancy

1			New York Metro Area	5,443	10.2	%	$	2,718	95.6	%	3.8	%	5.2	%	3.1	%	4.1	%	(0.3	%)
2			Los Angeles	6,748	8.1	%		1,752	94.2	%	3.5	%	3.1	%	3.6	%	4.3	%	(0.7	%)
3			Seattle/Tacoma	8,402	7.7	%		1,373	94.5	%	8.2	%	4.2	%	10.4	%	8.5	%	(0.3	%)
4			DC Northern Virginia	6,870	7.4	%		1,547	95.6	%	4.4	%	1.0	%	6.1	%	3.5	%	0.7	%
5			South Florida	9,027	7.0	%		1,291	93.6	%	(0.3	%)	0.0	%	(0.6	%)	(0.9	%)	0.5	%
6			Boston	5,649	6.8	%		1,888	95.5	%	3.2	%	2.6	%	3.6	%	2.8	%	0.4	%
7			San Francisco Bay Area	5,793	6.6	%		1,646	95.1	%	7.4	%	1.3	%	10.6	%	8.0	%	(0.5	%)
8			Phoenix	9,350	5.5	%		920	94.1	%	(1.2	%)	2.1	%	(3.1	%)	(1.4	%)	0.2	%
9			Denver	7,309	4.9	%		991	94.8	%	5.9	%	2.0	%	8.0	%	6.4	%	(0.5	%)
10			Orlando	6,931	4.4	%		1,031	93.6	%	(1.9	%)	1.3	%	(3.8	%)	(1.6	%)	(0.3	%)
11			San Diego	3,822	4.4	%		1,663	94.1	%	3.2	%	3.2	%	3.1	%	4.1	%	(0.8	%)
12			Atlanta	7,516	4.4	%		982	94.7	%	2.6	%	2.3	%	2.8	%	3.1	%	(0.5	%)
13			Inland Empire, CA	4,355	4.0	%		1,373	93.9	%	2.0	%	0.9	%	2.6	%	1.6	%	0.3	%
14			Orange County, CA	3,013	3.5	%		1,616	94.5	%	3.1	%	(0.1	%)	4.6	%	4.1	%	(0.9	%)
15			New England (excluding Boston)	4,769	2.9	%		1,111	94.5	%	1.7	%	3.5	%	0.2	%	1.8	%	(0.2	%)
16			Suburban Maryland	3,687	2.8	%		1,175	94.4	%	8.0	%	(0.8	%)	14.1	%	6.4	%	1.4	%
17			Portland, OR	3,409	2.1	%		976	95.0	%	4.9	%	1.6	%	7.0	%	5.5	%	(0.6	%)
18			Jacksonville	3,231	1.7	%		897	93.6	%	(2.9	%)	2.8	%	(6.5	%)	(1.8	%)	(1.0	%)
19			Dallas/Ft. Worth	2,601	1.5	%		996	95.6	%	5.1	%	5.0	%	5.1	%	4.3	%	0.7	%
20			Tampa	2,581	1.4	%		932	94.0	%	(0.6	%)	0.5	%	(1.4	%)	(0.8	%)	0.2	%

			Top 20 Markets	110,506	97.3	%		1,350	94.5	%	3.2	%	2.2	%	3.8	%	3.3	%	(0.1	%)
			All Other Markets	4,545	2.7	%		942	94.8	%	3.1	%	0.4	%	4.9	%	2.9	%	0.1	%

			Total	115,051	100.0	%	$	1,334	94.5	%	3.2	%	2.2	%	3.8	%	3.3	%	(0.1	%)

(1	)	Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period.


Equity Residential


Debt Summary as of December 31, 2008
(Amounts in thousands)
														Weighted
												Weighted		Average
												Average		Maturities
								Amounts (1)		% of Total		Rates (1)		(years)

Secured								$	5,036,930	48.0	%	5.18	%	8.3
Unsecured									5,464,316	52.0	%	5.46	%	5.5

			Total					$	10,501,246	100.0	%	5.34	%	6.9

Fixed Rate Debt:
		Secured - Conventional						$	3,805,652	36.2	%	6.00	%	7.2
		Unsecured - Public/Private							4,701,372	44.8	%	5.69	%	5.7
		Unsecured - Tax Exempt							75,790	0.7	%	5.07	%	20.5

			Fixed Rate Debt						8,582,814	81.7	%	5.80	%	6.5

Floating Rate Debt:
		Secured - Conventional							595,388	5.7	%	3.78	%	2.4
		Secured - Tax Exempt							635,890	6.1	%	2.50	%	21.6
		Unsecured - Public/Private							651,554	6.2	%	3.89	%	1.5
		Unsecured - Tax Exempt							35,600	0.3	%	1.05	%	20.0
		Unsecured - Revolving Credit Facility							-	-		4.31	%	3.1

			Floating Rate Debt						1,918,432	18.3	%	3.39	%	8.5

Total								$	10,501,246	100.0	%	5.34	%	6.9


(1	)	Net of the effect of any derivative instruments. Weighted average rates are for the year ended December 31, 2008.

		Note: The Company capitalized interest of approximately $60.1 million and $45.1 million during the years ended December 31, 2008 and 2007, respectively. The Company capitalized interest of approximately $15.0 million and $14.3 million during the quarters ended December 31, 2008 and 2007, respectively.


Debt Maturity Schedule as of December 31, 2008
(Amounts in thousands)

												Weighted		Weighted
												Average Rates		Average
				Fixed		Floating				% of		on Fixed		Rates on
Year				Rate (1)		Rate (1)		Total		Total		Rate Debt (1)		Total Debt (1)

2009			(2)	$	350,974	$	512,424	$	863,398	8.2	%	6.79	%	4.62	%
2010			(3)		294,968		658,515		953,483	9.1	%	7.01	%	4.42	%
2011			(2) (4)		1,451,164		63,178		1,514,342	14.4	%	5.71	%	5.57	%
2012					908,196		3,658		911,854	8.7	%	6.08	%	6.08	%
2013					566,333		-		566,333	5.4	%	5.93	%	5.93	%
2014					517,470		-		517,470	4.9	%	5.28	%	5.28	%
2015					355,620		-		355,620	3.4	%	6.41	%	6.41	%
2016					1,089,317		-		1,089,317	10.4	%	5.32	%	5.32	%
2017					1,346,649		456		1,347,105	12.8	%	5.87	%	5.87	%
2018					335,496		44,677		380,173	3.6	%	5.96	%	5.63	%
2019+					1,366,627		635,524		2,002,151	19.1	%	5.85	%	4.98	%

Total				$	8,582,814	$	1,918,432	$	10,501,246	100.0	%	5.86	%	5.37	%


(1	)	Net of the effect of any derivative instruments. Weighted average rates are as of December 31, 2008.

(2	)	On January 27, 2009, the Company repurchased at par $105.2 million of its 4.75% unsecured notes due June 15, 2009 and $185.2 million of its 6.95% unsecured notes due March 2, 2011 pursuant to a cash tender offer announced on January 16, 2009.

(3	)	Includes the Company's $500.0 million floating rate term loan facility, which matures on October 5, 2010, subject to two one-year extension options exercisable by the Company.

(4	)	Includes $548.6 million face value of 3.85% convertible unsecured debt with a final maturity of 2026. The notes are callable by the Company on or after August 18, 2011. The notes are putable by the holders on August 18, 2011, August 15, 2016 and August 15, 2021.


Equity Residential
Unsecured Debt Summary as of December 31, 2008
(Amounts in thousands)

										Unamortized
			Coupon		Due		Face			Premium/			Net
			Rate		Date		Amount			(Discount)			Balance

		Fixed Rate Notes:
			4.750	%	06/15/09	(1)	$	227,400		$	(98	)	$	227,302
			6.950	%	03/02/11	(2)		300,000			2,047			302,047
			6.625	%	03/15/12			400,000			(942	)		399,058
			5.500	%	10/01/12			350,000			(1,295	)		348,705
			5.200	%	04/01/13			400,000			(503	)		399,497
			5.250	%	09/15/14			500,000			(351	)		499,649
			6.584	%	04/13/15			300,000			(700	)		299,300
			5.125	%	03/15/16			500,000			(386	)		499,614
			5.375	%	08/01/16			400,000			(1,407	)		398,593
			5.750	%	06/15/17			650,000			(4,323	)		645,677
			7.125	%	10/15/17			150,000			(570	)		149,430
			7.570	%	08/15/26			140,000			-			140,000
			3.850	%	08/15/26	(3)		548,557			(6,057	)		542,500
		Floating Rate Adjustments				(1)		(150,000	)		-			(150,000	)

								4,715,957			(14,585	)		4,701,372

		Fixed Rate Tax Exempt Notes:
			5.200	%	06/15/29	(4)		75,790			-			75,790


		Floating Rate Tax Exempt Notes:
			7-Day SIFMA		12/15/28	(4)		35,600			-			35,600


		Floating Rate Notes:
					06/15/09	(1)		150,000			-			150,000
		FAS 133 Adjustments - net				(1)		1,554			-			1,554
		Term Loan Facility	LIBOR+0.50%		10/05/10	(4) (5)		500,000			-			500,000

								651,554			-			651,554

		Revolving Credit Facility:	LIBOR+0.50%		02/28/12	(6)		-			-			-

		Total Unsecured Debt					$	5,478,901		$	(14,585	)	$	5,464,316


		Note: SIFMA stands for the Securities Industry and Financial Markets Association and is the tax-exempt index equivalent of LIBOR.

(1	)	$150.0 million in fair value interest rate swaps converts a portion of the 4.750% notes due June 15, 2009 to a floating interest rate. During the year ended December 31, 2008, the Company repurchased $72.6 million of these notes at a discount to par of approximately 1.0% and recognized a gain on early debt extinguishment of $0.7 million. During the quarter ended December 31, 2008, the Company repurchased $44.1 million of these notes at a discount to par of approximately 1.1% and recognized a gain on early debt extinguishment of $0.4 million. On January 27, 2009, the Company repurchased $105.2 million of these notes at par pursuant to a cash tender offer announced on January 16, 2009.

(2	)	On January 27, 2009, the Company repurchased $185.2 million of these notes at par pursuant to a cash tender offer announced on January 16, 2009.

(3	)	Convertible notes mature on August 15, 2026. The notes are callable by the Company on or after August 18, 2011. The notes are putable by the holders on August 18, 2011, August 15, 2016 and August 15, 2021. During the year and quarter ended December 31, 2008, the Company repurchased $101.4 million of these notes at a discount to par of approximately 17.7% and recognized a gain on early debt extinguishment of $18.0 million.

(4	)	Notes are private. All other unsecured debt is public.

(5	)	Represents the Company's $500.0 million term loan facility, which matures on October 5, 2010, subject to two one-year extension options exercisable by the Company.

(6	)	As of December 31, 2008, there was no amount outstanding and approximately $1.29 billion available on the Company's unsecured revolving credit facility.


Equity Residential

Selected Unsecured Public Debt Covenants

							December 31,		September 30,
							2008		2008

	Total Debt to Adjusted Total Assets (not to exceed 60%)						52.3	%		51.2	%

	Secured Debt to Adjusted Total Assets (not to exceed 40%)						25.1	%		22.8	%

	Consolidated Income Available for Debt Service to
		Maximum Annual Service Charges
		(must be at least 1.5 to 1)					2.21			2.23

	Total Unsecured Assets to Unsecured Debt
		(must be at least 150%)					218.8	%		220.4	%


These selected covenants relate to ERP Operating Limited Partnership's ("ERPOP") outstanding unsecured public debt. Equity Residential is the general partner of ERPOP.


Debt Repurchases
(Amounts in thousands)


			Third Quarter 2008 Activity

												Write-off of
			Bonds		Price		%		Extinguishment			Unamortized
Security			Retired		Paid		Discount		Gain			Discount/Fees

2009 4.75% Public Notes			$	28,480	$	28,214	0.9	%	$	266		$	70

Total			$	28,480	$	28,214	0.9	%	$	266		$	70


			Fourth Quarter 2008 Activity

												Write-off of
			Bonds		Price		%		Extinguishment			Unamortized
Security			Retired		Paid		Discount		Gain			Discount/Fees

2009 4.75% Public Notes			$	44,120	$	43,639	1.1	%	$	481		$	80

2026 3.85% Convertible Notes (1)				101,443		83,453	17.7	%		17,990			1,929

Total			$	145,563	$	127,092	12.7	%	$	18,471		$	2,009


			First Quarter 2009 Activity

												Write-off of
			Bonds		Price		%		Extinguishment			Unamortized
	Security		Retired		Paid		Discount		Gain			Discount/Fees

2009 4.75% Public Notes			$	105,161	$	105,161	0.0	%	$	-		$	125

2011 6.95% Public Notes				185,194		185,194	0.0	%		-			1,379

Total			$	290,355	$	290,355	0.0	%	$	-		$	1,504



(1) 2026 3.85% Convertible Notes are putable to the Company in 2011.


Equity Residential


Capital Structure as of December 31, 2008
(Amounts in thousands except for share and per share amounts)

			Secured Debt								$	5,036,930	48.0	%
			Unsecured Debt									5,464,316	52.0	%
		Total Debt										10,501,246	100.0	%	54.3	%

			Common Shares				272,786,760		94.2	%
			OP Units				16,679,777		5.8	%

		Total Shares and OP Units					289,466,537		100.0	%
		Common Share Equivalents (see below)					406,167

		Total outstanding at quarter-end					289,872,704
		Common Share Price at December 31, 2008				$	29.82
												8,644,004	97.7	%
		Perpetual Preferred Equity (see below)										200,000	2.3	%
		Total Equity										8,844,004	100.0	%	45.7	%

		Total Market Capitalization									$	19,345,250			100.0	%


Convertible Preferred Equity as of December 31, 2008
(Amounts in thousands except for share/unit and per share/unit amounts)

								Annual			Annual		Weighted				Common
				Redemption	Outstanding	Liquidation		Dividend			Dividend		Average		Conversion		Share
Series				Date	Shares/Units	Value		Per Share/Unit			Amount		Rate		Ratio		Equivalents

Preferred Shares:
	7.00% Series E			11/1/98	329,016	$	8,225	$	1.75		$	576			1.1128		366,129
	7.00% Series H			6/30/98	22,459		561		1.75			39			1.4480		32,521
Junior Preference Units:
	8.00% Series B			7/29/09	7,367		184		2.00			15			1.020408		7,517

Total Convertible Preferred Equity					358,842	$	8,970				$	630	7.02	%			406,167


Perpetual Preferred Equity as of December 31, 2008
(Amounts in thousands except for share and per share amounts)

								Annual			Annual		Weighted
				Redemption	Outstanding	Liquidation		Dividend			Dividend		Average
Series				Date	Shares	Value		Per Share			Amount		Rate

Preferred Shares:
	8.29% Series K			12/10/26	1,000,000	$	50,000	$	4.145		$	4,145
	6.48% Series N			6/19/08	600,000		150,000		16.20			9,720

Total Perpetual Preferred Equity					1,600,000	$	200,000				$	13,865	6.93	%


Equity Residential
Common Share and Operating Partnership Unit (OP Unit)
Weighted Average Amounts Outstanding


			2008	2007	Q408 (1)	Q407

Weighted Average Amounts Outstanding for Net Income Purposes:
	Common Shares - basic		270,011,946	279,406,365	271,292,534	269,197,434
	Shares issuable from assumed conversion/vesting of:
		- OP Units	17,618,514	18,985,960	-	18,530,596
		- share options/restricted shares	2,429,163	3,842,868	-	2,929,623

	Total Common Shares and OP Units - diluted		290,059,623	302,235,193	271,292,534	290,657,653

Weighted Average Amounts Outstanding for FFO Purposes:
	Common Shares - basic		270,011,946	279,406,365	271,292,534	269,197,434
	OP Units - basic		17,618,514	18,985,960	16,958,491	18,530,596

	Total Common Shares and OP Units - basic		287,630,460	298,392,325	288,251,025	287,728,030
	Shares issuable from assumed conversion/vesting of:
		- convertible preferred shares/units	427,090	496,959	-	471,314
		- share options/restricted shares	2,429,163	3,842,868	1,260,145	2,929,623

	Total Common Shares and OP Units - diluted		290,486,713	302,732,152	289,511,170	291,128,967

Period Ending Amounts Outstanding:
	Common Shares - basic		272,786,760
	OP Units - basic		16,679,777

	Total Common Shares and OP Units - basic		289,466,537


(1)	In accordance with SFAS No. 128, Earnings Per Share, potential common shares issuable from the assumed conversion of OP Units, the exercise of share options and the vesting of restricted shares are automatically anti-dilutive and therefore excluded from the diluted earnings per share calculation as the Company had a loss from continuing operations for the fourth quarter ended December 31, 2008.


Equity Residential
Partially Owned Entities as of December 31, 2008
(Amounts in thousands except for project and unit amounts)


						Consolidated															Unconsolidated
						Development Projects
						Held for															Institutional
						and/or Under			Completed, Not			Completed									Joint
						Development			Stabilized (4)			and Stabilized			Other			Total			Ventures (5)

Total projects				(1	)		-			2			5			21			28			41

Total units				(1	)		-			410			1,405			3,942			5,757			9,776

Operating information for the year
		ended 12/31/08 (at 100%):
		Operating revenue				$	958		$	2,310		$	24,111		$	58,528		$	85,907		$	104,128
		Operating expenses					1,245			2,693			10,965			19,624			34,527			46,845

		Net operating (loss) income					(287	)		(383	)		13,146			38,904			51,380			57,283
		Depreciation					370			2,065			9,427			14,737			26,599			21,523
		Other					311			-			2,189			71			2,571			408

		Operating (loss) income					(968	)		(2,448	)		1,530			24,096			22,210			35,352
		Interest and other income					50			11			61			390			512			516
		Interest:
			Expense incurred, net				(564	)		(1,157	)		(7,522	)		(20,257	)		(29,500	)		(37,470	)
			Amortization of deferred financing costs				-			(94	)		(180	)		(141	)		(415	)		(617	)
		Income and other tax (expense) benefit					(146	)		-			-			(30	)		(176	)		(417	)

		Net (loss) income				$	(1,628	)	$	(3,688	)	$	(6,111	)	$	4,058		$	(7,369	)	$	(2,636	)


Debt - Secured (2):
			EQR Ownership (3)			$	517,543		$	76,708		$	141,206		$	287,986		$	1,023,443		$	121,200
			Minority Ownership				-			-			-			14,228			14,228			363,600

Total (at 100%)						$	517,543		$	76,708		$	141,206		$	302,214		$	1,037,671		$	484,800


(1	)	Project and unit counts exclude all uncompleted development projects until those projects are substantially completed. See the Consolidated Development Projects schedule for more detail.

(2	)	All debt is non-recourse to the Company with the exception of $111.8 million in mortgage debt on various development projects.

(3	)	Represents the Company's current economic ownership interest.

(4	)	Projects included here are substantially complete. However, they may still require additional exterior and interior work for all units to be available for leasing.

(5	)	Mortgage debt is also partially collateralized by $33.4 million in unconsolidated restricted cash set aside from the net proceeds of property sales.


Equity Residential
Consolidated Development Projects as of December 31, 2008
(Amounts in thousands except for project and unit amounts)

								Total Book Value Not Placed in Service
			Total Capital Cost (1)		Total Book Value to Date																Estimated Completion Date	Estimated Stabilization Date
		No. of Units								Total Debt			Percentage Completed			Percentage Leased			Percentage Occupied
Projects	Location	No. of Units								Total Debt			Percentage Completed			Percentage Leased			Percentage Occupied

Projects Under Development - Wholly Owned:
Mosaic at Metro	Hyattsville, MD	260	$	61,483	$	53,329		$	53,329	$	38,425			94	%		21	%	14	%	Q1 2009	Q1 2010
70 Greene (a.k.a. 77 Hudson)	Jersey City, NJ	480		269,958		196,126			196,126		-			79	%		-		-		Q4 2009	Q1 2011
Reserve at Town Center II	Mill Creek, WA	100		24,464		9,324			9,324		-			27	%		-		-		Q1 2010	Q3 2010
Redmond Way	Redmond, WA	250		84,382		22,434			22,434		-			7	%		-		-		Q1 2011	Q1 2012

Projects Under Development - Wholly Owned		1,090		440,287		281,213			281,213		38,425

Projects Under Development - Partially Owned:
Third Square (a.k.a. 303 Third Street)	Cambridge, MA	482		254,523		250,629			126,437		158,515			98	%		36	%	29	%	Q1 2009	Q2 2010
Veridian (a.k.a. Silver Spring)	Silver Spring, MD	457		148,705		139,904			139,904		98,674			95	%		22	%	5	%	Q1 2009	Q3 2010
Montclair Metro	Montclair, NJ	163		48,730		29,326			29,326		14,540			64	%		-		-		Q3 2009	Q1 2010
Red Road Commons	South Miami, FL	404		128,816		96,600			96,600		39,028			71	%		-		-		Q1 2010	Q3 2011
111 Lawrence Street	Brooklyn, NY	492		283,968		108,727			108,727		-			32	%		-		-		Q2 2010	Q3 2011
Westgate	Pasadena, CA	480		170,558		73,266			73,266		163,160	(2)		24	%		-		-		Q2 2011	Q2 2012

Projects Under Development - Partially Owned		2,478		1,035,300		698,452			574,260		473,917

Projects Under Development		3,568		1,475,587		979,665			855,473		512,342	(3)

Land Held for Development		N/A		-		254,873	(5)		254,873		43,626

Land/Projects Held for and/or Under Development		3,568		1,475,587		1,234,538			1,110,346		555,968

Completed Not Stabilized - Wholly Owned (4):
Key Isle at Windermere II	Orlando, FL	165		27,955		27,825			-		-						93	%	89	%	Completed	Q1 2009
West End Apartments (a.k.a. Emerson/CRP II)	Boston, MA	310		164,981		163,145			-		-						92	%	86	%	Completed	Q2 2009
Highland Glen II	Westwood, MA	102		19,888		19,868			-		-						86	%	86	%	Completed	Q2 2009
Crowntree Lakes	Orlando, FL	352		57,376		56,680			-		-						81	%	69	%	Completed	Q4 2009
Reunion at Redmond Ridge	Redmond, WA	321		54,418		52,909			-		-						31	%	28	%	Completed	Q3 2010

Projects Completed Not Stabilized - Wholly Owned		1,250		324,618		320,427			-		-

Completed Not Stabilized - Partially Owned (4):
Alta Pacific	Irvine, CA	132		45,342		45,317			-		28,260						95	%	89	%	Completed	Q1 2009
1401 South State (a.k.a. City Lofts)	Chicago, IL	278		69,952		68,247			-		48,448						63	%	53	%	Completed	Q3 2009

Projects Completed Not Stabilized - Partially Owned		410		115,294		113,564			-		76,708

Projects Completed Not Stabilized		1,660		439,912		433,991			-		76,708

Total Projects		5,228	$	1,915,499	$	1,668,529		$	1,110,346	$	632,676

													Total Capital			Q4 2008
NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS													Cost (1)			NOI
Projects Under Development													$	1,475,587		$	(233	)
Completed Not Stabilized														439,912			2,789
Total Development NOI Contribution													$	1,915,499		$	2,556


(1) Total capital cost represents estimated development cost for projects under development and all capitalized costs incurred to date plus any estimates of costs remaining to be funded for all projects, all in accordance with GAAP.

(2) Debt is primarily tax-exempt bonds that are entirely outstanding with $94.1 million held in escrow by the lender and released as draw requests are made. This escrowed amount is classified as "Deposits - restricted" in the consolidated balance sheets at 12/31/08.

(3) Of the approximately $495.9 million of capital cost remaining to be funded at 12/31/08 for projects under development, $341.4 million will be funded by fully committed third party bank loans and the remaining $154.5 million will be funded by cash on hand.

(4) Properties included here are substantially complete. However, they may still require additional exterior and interior work for all units to be available for leasing.

(5) Total book value to date of land held for development declined significantly since 9/30/08 primarily as a result of the $116.4 million impairment charge that the Company announced on January 9, 2009.


Equity Residential
Consolidated Condominium Conversion Projects as of December 31, 2008
(Amounts in thousands except for project and unit amounts)


				Units				2008 YTD Activity						Q4 2008
						Available for Sale/Other
											FFO						FFO
		Project	Estimated								Incremental						Incremental
		Start	Close Out		Units	Sold Not	Available/	Units	Sales		(Loss) Gain			Units	Sales		(Loss) Gain
Projects	Location	Date (1)	Date	Total	Closed	Closed	Other	Closed	Price		on Sale (2)			Closed	Price		on Sale (2)

For Sale
Park Bloomingdale	Bloomingdale, IL	Q2 2006	Q1 2009	250	249	1	-	69	$	10,948	$	(923	)	29	$	3,913	$	(979	)
Arrington Place	Issaquah, WA	Q1 2007	Q4 2009	130	67	-	63	22		5,886		384		-		-		(5	)

				380	316	1	63	91		16,834		(539	)	29		3,913		(984	)

Closed Out/Other
Belle Arts (3)	Bellevue, WA	Q4 2006	N/A	128	127	-	1	-		-		(10	)	-		-		(11	)
The Cleo (The Alexandria) (4)	Los Angeles, CA	Q3 2007	N/A	104	12	-	92	12		3,530		378		2		442		(86	)
South Palm Place	Tamarac, FL	Q2 2005	Q4 2008	208	208	-	-	6		848		(507	)	1		102		(180	)
Chantecleer Lakes	Naperville, IL	Q4 2005	Q1 2008	304	304	-	-	2		326		(12	)	-		-		(4	)
Pacific Cove	Playa Del Ray, CA	Q3 2006	Q1 2008	80	80	-	-	1		520		(97	)	-		-		(7	)
Milano Terrace	Scottsdale, AZ	Q2 2005	Q2 2008	224	224	-	-	18		4,043		215		-		-		(5	)
Projects closed out prior to 2008 (2)				4,289	4,289	-	-	-		-		(3,360	)	-		-		(12	)

				5,337	5,244	-	93	39		9,267		(3,393	)	3		544		(305	)

Totals			4	5,717	5,560	1	156	130	$	26,101	$	(3,932	)	32	$	4,457	$	(1,289	)



Net incremental (loss) on sales of condominium units (2)											$	(3,932	)				$	(1,289	)
Corporate overhead (property management expense)												(2,755	)					(694	)
Other expenses												(2,289	)					(849	)
Discontinued operating loss of active conversions												(3,737	)					(878	)
Income of halted conversions (5)												561						392

Pre-tax net loss - Condominium division (6)											$	(12,152	)				$	(3,318	)


(1) Project start date represents the date that each respective property was acquired by the taxable REIT subsidiary and included in discontinued operations.

(2) Amounts are net of $313,000 and $67,000 in reserves for potential homeowners disputes for the year and quarter ended December 31, 2008, respectively. The Company recorded an additional reserve of $3,197,000 in the second quarter of 2008 on various projects closed out prior to 2008.

(3) Belle Arts - In order to retain certain development rights, the remaining unit is not available for sale at this time.

(4) The Cleo (The Alexandria) - The Company halted the sales effort during the fourth quarter of 2008 and will operate the remaining 92 units as a rental property.

(5) Halted conversions includes the results of Sheridan Lake Club (Dania Beach Club), Sage, The Martine (Crosspointe), The Hamilton, Verde (Mission Verde) and The Cleo (The Alexandria).

(6) Excludes interest income, interest expense and certain other items specific to condominium conversion projects that ultimately eliminate in consolidation.
Also excludes depreciation expense on halted conversions (active conversions are not depreciated) and excludes income and other taxes on condominium sales and operations, if any.


Equity Residential
Maintenance Expenses and Capitalized Improvements to Real Estate
For the Year Ended December 31, 2008
(Amounts in thousands except for unit and per unit amounts)


		Maintenance Expenses												Capitalized Improvements to Real Estate													Total Expenditures

																		Building Improvements (5)
	Total Units (1)			Avg. Per Unit				Avg. Per Unit				Avg. Per Unit		Replacements (4)		Avg. Per Unit				Avg. Per Unit				Avg. Per Unit			Grand Total		Avg. Per Unit
		Expense (2)				Payroll (3)				Total												Total

Established Properties (6)	105,607	$	83,558	$	791	$	72,531	$	687	$	156,089	$	1,478	$	38,003	$	360	$	53,195	$	504	$	91,198	$	864	(9)	$	247,287	$	2,342

New Acquisition Properties (7)	20,665		15,636		823		13,513		712		29,149		1,535		5,409		285		18,243		961		23,652		1,246			52,801		2,781

Other (8)	6,487		10,883				9,127				20,010				43,497				11,491				54,988					74,998

Total	132,759	$	110,077			$	95,171			$	205,248			$	86,909			$	82,929			$	169,838				$	375,086


(1) Total Units - Excludes 9,776 unconsolidated units and 4,709 military housing (fee managed) units, for which maintenance expenses and capitalized improvements to real estate are self-funded and do not consolidate into the Company's results.

(2) Maintenance Expenses - Includes general maintenance costs, unit turnover costs including interior painting, regularly scheduled landscaping and tree trimming costs, security, exterminating, fire protection, snow and ice removal, elevator repairs, and other miscellaneous building repair costs.

(3) Maintenance Payroll - Includes employee costs for maintenance, cleaning, housekeeping, and landscaping.

(4) Replacements - Includes new expenditures inside the units such as appliances, mechanical equipment, fixtures and flooring, including carpeting.

(5) Building Improvements - Includes roof replacement, paving, amenities and common areas, building mechanical equipment systems, exterior painting and siding, major landscaping, vehicles and office and maintenance equipment.

(6) Established Properties - Wholly Owned Properties acquired prior to January 1, 2006.

(7) New Acquisition Properties - Wholly Owned Properties acquired during 2006, 2007 and 2008. Per unit amounts are based on a weighted average of 18,983 units.

(8) Other - Includes properties either partially owned or sold during the period, commercial space, corporate housing and condominium conversions. Also includes $34.2 million included in replacements spent on various assets related to major renovations and repositioning of these assets.

(9) For 2009, the Company estimates an annual stabilized run rate of approximately $925 per unit of capital expenditures for its established properties.


Equity Residential
Discontinued Operations
(Amounts in thousands)


		Year Ended						Quarter Ended
		December 31,						December 31,
		2008			2007			2008			2007

REVENUES
Rental income		$	45,708		$	200,131		$	1,627		$	26,961

	Total revenues		45,708			200,131			1,627			26,961

EXPENSES (1)
Property and maintenance			18,537			69,391			2,194			9,849
Real estate taxes and insurance			5,974			26,845			134			3,945
Property management			(62	)		266			-			(4	)
Depreciation			11,746			54,124			333			7,102
General and administrative			29			15			5			1

Total expenses			36,224			150,641			2,666			20,893

Discontinued operating income (loss)			9,484			49,490			(1,039	)		6,068

Interest and other income			224			221			12			30
Interest (2):
	Expense incurred, net		(37	)		(4,010	)		(9	)		(285	)
	Amortization of deferred financing costs		-			(1,728	)		-			(61	)
Income and other tax benefit (expense)			1,848			7,309			832			6,326

Discontinued operations			11,519			51,282			(204	)		12,078

Minority Interests - Operating Partnership			(718	)		(3,256	)		12			(774	)

Discontinued operations, net of minority interests			10,801			48,026			(192	)		11,304

Net gain on sales of discontinued operations			392,857			933,013			27,805			85,523
Minority Interests - Operating Partnership			(24,475	)		(59,246	)		(1,624	)		(5,482	)

Gain on sales of discontinued operations, net of minority interests			368,382			873,767			26,181			80,041

Discontinued operations, net of minority interests		$	379,183		$	921,793		$	25,989		$	91,345


(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.


Equity Residential
Additional Reconciliations and Non-Comparable Items
(Amounts in thousands except per share data)
(All per share data is diluted)


FFO Reconciliations

									FFO Reconciliations
									Guidance Midpoint Q4
									2008 to Actual Q4 2008
									Amounts			Per Share

		Guidance midpoint Q4 2008 FFO - Diluted (1) (2)							$	181,533		$	0.625
		Impairment (including discontinued operations)								(117,132	)		(0.405	)
		Debt extinguishment gains (interest and other income)								4,529			0.016
		Property NOI (including reserve adjustments)								3,669			0.013
		Interest expense								3,045			0.011
		Income and other tax expense								2,418			0.008
		Other								6,758			0.025

		Actual Q4 2008 FFO - Diluted (1) (2)							$	84,820		$	0.293



Non-Comparable Items (3)


			Year Ended December 31,									Quarter Ended December 31,
			2008			2007			Variance			2008			2007			Variance

Severance charges:
	Property management expense		$	(810	)	$	(1,606	)	$	796		$	(528	)	$	(1,129	)	$	601
	General and administrative expense			(4,330	)		(3,944	)		(386	)		(2,168	)		(3,021	)		853
Impairment (including discontinued operations)				(122,103	)		(1,726	)		(120,377	)		(119,247	)		(706	)		(118,541	)
Debt extinguishment gains (interest and other income)				18,737			-			18,737			18,471			-			18,471
Debt extinguishment costs (interest):
	Prepayment penalties			(81	)		(3,339	)		3,258			(40	)		-			(40	)
	Write-off of unamortized deferred financing costs			(1,020	)		(4,032	)		3,012			(851	)		(197	)		(654	)
	Write-off of unamortized premiums/(discounts)			(1,189	)		-			(1,189	)		(1,164	)		-			(1,164	)
Premium on redemption of Preferred Shares				-			(6,154	)		6,154			-			(10	)		10
Net gain on sales of land parcels				2,976			6,360			(3,384	)		-			1,130			(1,130	)
Net incremental (loss) gain on sales of condominium units				(3,932	)		20,771			(24,703	)		(1,289	)		1,998			(3,287	)
Income and other tax (expense) benefit - Condo sales				1,935			7,319			(5,384	)		846			6,127			(5,281	)
Other				3,288			5,709			(2,421	)		691			3,668			(2,977	)

Net non-comparable items (3)			$	(106,529	)	$	19,358		$	(125,887	)	$	(105,279	)	$	7,860		$	(113,139	)


Note: See page 27 for definitions, footnotes and reconciliations of EPS to FFO.


Equity Residential



The earnings guidance/projections provided below are based on current expectations and are forward-looking.

2009 Earnings Guidance (per share diluted)

		Q1 2009	2009

Expected FFO (1) (2)		$0.53 to $0.58	$2.00 to $2.30


2009 Same Store Assumptions

Physical occupancy			93.5%
Revenue change			(4.50%) to (1.50%)
Expense change			2.50% to 3.50%
NOI change			(9.25%) to (3.75%)

(Note: 25 basis point change in NOI percentage = $0.01 per share change in EPS/FFO)

2009 Transaction Assumptions

Rental acquisitions			$250.0 million
Rental dispositions			$700.0 million
Capitalization rate spread			125 basis points

2009 Debt Assumptions

Weighted average debt outstanding			$9.7 billion to $10.1 billion
Weighted average interest rate (reduced for capitalized interest and
	including prepayment penalties)		4.93%
Interest expense			$475.0 million to $495.0 million
Unrestricted cash at 12/31/09			$50.0 million

Note: Debt guidance assumes no debt offerings and no debt extinguishment gains, but does include approximately $9.0 million of interest expense for the mandatory adoption of FASB Staff Position APB 14-1, which requires companies to expense the implied option value inherent in convertible debt. This change does not affect the Company's continued compliance with its financial or debt covenants.




2009 Other Guidance Assumptions

General and administrative expense			$40.0 million to $42.0 million
Interest and other income			$9.0 million to $12.0 million
Income and other tax expense			$1.0 million to $2.0 million
Net gain on sales of land parcels			No amounts budgeted
Preferred share redemptions			No amounts budgeted
Weighted average Common Shares and OP Units - Diluted			291.1 million






Note: See page 27 for definitions, footnotes and reconciliations of EPS to FFO.


Equity Residential



The earnings guidance/projections provided below are based on current expectations and are forward-looking.


Reconciliations of EPS to FFO for Pages 25 and 26

(Amounts in thousands except per share data)
(All per share data is diluted)

					Expected	Expected
	Expected Q4 2008				Q1 2009	2009
	Amounts		Per Share		Per Share	Per Share

Expected Earnings - Diluted (4)	$	110,466	$	0.380	$0.22 to $0.27	$0.92 to $1.22
Add: Expected depreciation expense		150,827		0.520	0.52	2.12
Less: Expected net gain on sales (4)		(79,760)		(0.275)	(0.21)	(1.04)

Expected FFO - Diluted (1) (2)	$	181,533	$	0.625	$0.53 to $0.58	$2.00 to $2.30


Definitions and Footnotes for Pages 25 and 26

(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 of depreciable property, 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 units to condominiums, it simultaneously discontinues depreciation of such property. FFO available to Common Shares and OP Units is calculated on a basis consistent with net income available to Common Shares and reflects adjustments to net income for preferred distributions and premiums on redemption of preferred shares 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 "Minority Interests - Operating Partnership". Subject to certain restrictions, the Minority Interests - Operating Partnership may exchange their OP Units for EQR Common Shares on a one-for-one basis.

(2) The Company believes that FFO and FFO available to Common Shares and OP 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 OP Units can help compare the operating performance of a company's real estate between periods or as compared to different companies. FFO and FFO available to Common Shares and OP Units do not represent net income, net income available to Common Shares or net cash flows from operating activities in accordance with GAAP. Therefore, FFO and FFO available to Common Shares and OP Units should not be exclusively considered as alternatives to net income, net income available to Common Shares or net cash flows from operating activities as determined by GAAP or as a measure of liquidity. The Company's calculation of FFO and FFO available to Common Shares and OP 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.

(3) Non-comparable items are those items included in FFO that by their nature are not comparable from period to period, such as net incremental gain on sales of condominium units, impairment charges, debt extinguishment costs and redemption premiums on Preferred Shares/Preference Interests.

(4) Earnings represents net income per share calculated in accordance with accounting principles generally accepted in the United States. Expected earnings is calculated on a basis consistent with actual earnings. Due to the uncertain timing and extent of property dispositions and the resulting gains/losses on sales, actual earnings could differ materially from expected earnings.

		EQUITY RESIDENTIAL

Date:	February 4, 2009	By:	/s/ Ian S. Kaufman

		Name:	Ian S. Kaufman

		Its:	First Vice President and Chief Accounting Officer

Exhibit Number		Exhibit
99.1		Press Release dated February 4, 2009, announcing the results of operations and financial condition of Equity Residential as of December 31, 2008 and for the year and quarter then ended.