Maryland
|
1-12252
|
13-3675988
|
|
(State or Other Jurisdiction
|
(Commission
|
(I.R.S. Employer
|
|
of Incorporation or Organization)
|
File Number)
|
Identification No.)
|
|
Two North Riverside Plaza
|
|||
Chicago, Illinois
|
60606
|
||
(Address of Principal Executive Offices)
|
(Zip Code)
|
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit
|
||
Number
|
Exhibit
|
|
99.1
|
Press Release dated February 1, 2012, announcing the results of operations and financial condition of Equity Residential as of December 31, 2011 and for the year and quarter then ended.
|
|
99.2
|
Selected financial results and related information of Equity Residential for the year ended December 31, 2011.
|
|
EQUITY RESIDENTIAL
|
|||
Date: February 1, 2012
|
By:
|
/s/ Ian S. Kaufman
|
|
Name:
|
Ian S. Kaufman
|
||
Its:
|
Senior Vice President and Chief Accounting Officer
|
Exhibit
|
||
Number
|
Exhibit
|
|
99.1
|
Press Release dated February 1, 2012, announcing the results of operations and financial condition of Equity Residential as of December 31, 2011 and for the year and quarter then ended.
|
|
99.2
|
Selected financial results and related information of Equity Residential for the year ended December 31, 2011.
|
|
·
|
the positive impact of $0.06 per share from higher same store net operating income (NOI) and $0.02 per share from higher NOI from properties in lease-up;
|
·
|
the negative impact of $0.06 per share from 2010 and 2011 transaction activity; and
|
·
|
the positive impact of approximately $0.02 per share from lower interest expense and other items.
|
·
|
a negative impact of approximately $0.03 per share from lower total property NOI as a result of seasonally higher operating expenses; and
|
·
|
a negative impact of approximately $0.02 per share due to higher total interest expense due to higher debt balances.
|
·
|
a positive impact of approximately $0.28 per share from higher same store property NOI;
|
·
|
a positive impact of approximately $0.04 per share from higher non-same store property NOI including properties in lease-up;
|
·
|
a positive impact of approximately $0.01 per share, net, from the following factors impacting interest expense: benefits from $0.04 per share of higher capitalized interest due to increased development activity and $0.04 per share from lower secured debt balances in 2012 which are offset by $0.06 per share from increased interest expense due to higher unsecured debt balances in 2012, and by $0.01 per share due to costs from the company’s revolving credit facility expansion and delayed draw term loan; and
|
·
|
a negative impact of approximately $0.03 per share from a higher share count in 2012 due to the dilutive effect of stock-option exercises, an expected issuance of one million operating partnership units in connection with a planned acquisition and ATM activity to date.
|
Equity Residential
|
||||||||||||||||
Consolidated Statements of Operations
|
||||||||||||||||
(Amounts in thousands except per share data)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Year Ended December 31,
|
Quarter Ended December 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
REVENUES
|
||||||||||||||||
Rental income
|
$
|
1,980,437
|
$
|
1,763,792
|
$
|
516,913
|
$
|
458,868
|
||||||||
Fee and asset management
|
9,026
|
9,476
|
2,344
|
1,880
|
||||||||||||
Total revenues
|
1,989,463
|
1,773,268
|
519,257
|
460,748
|
||||||||||||
EXPENSES
|
||||||||||||||||
Property and maintenance
|
416,723
|
402,078
|
103,465
|
99,717
|
||||||||||||
Real estate taxes and insurance
|
222,427
|
211,621
|
54,835
|
51,922
|
||||||||||||
Property management
|
82,133
|
80,087
|
19,744
|
20,317
|
||||||||||||
Fee and asset management
|
4,279
|
4,998
|
1,072
|
756
|
||||||||||||
Depreciation
|
646,963
|
613,146
|
166,849
|
157,301
|
||||||||||||
General and administrative
|
43,606
|
39,881
|
11,144
|
8,852
|
||||||||||||
Impairment
|
-
|
45,380
|
-
|
45,380
|
||||||||||||
Total expenses
|
1,416,131
|
1,397,191
|
357,109
|
384,245
|
||||||||||||
Operating income
|
573,332
|
376,077
|
162,148
|
76,503
|
||||||||||||
Interest and other income
|
7,977
|
5,166
|
1,369
|
267
|
||||||||||||
Other expenses
|
(14,557
|
)
|
(11,928
|
)
|
(5,239
|
)
|
(2,415
|
)
|
||||||||
Interest:
|
||||||||||||||||
Expense incurred, net
|
(469,237
|
)
|
(468,306
|
)
|
(114,366
|
)
|
(120,136
|
)
|
||||||||
Amortization of deferred financing costs
|
(17,006
|
)
|
(10,114
|
)
|
(4,887
|
)
|
(2,392
|
)
|
||||||||
Income (loss) before income and other taxes, (loss) from investments in unconsolidated entities, net gain (loss) on sales of unconsolidated entities and land parcels and discontinued operations
|
80,509
|
(109,105
|
)
|
39,025
|
(48,173
|
)
|
||||||||||
Income and other tax (expense) benefit
|
(728
|
)
|
(292
|
)
|
(59
|
)
|
(9
|
)
|
||||||||
(Loss) from investments in unconsolidated entities
|
-
|
(735
|
)
|
-
|
-
|
|||||||||||
Net gain on sales of unconsolidated entities
|
-
|
28,101
|
-
|
-
|
||||||||||||
Net gain (loss) on sales of land parcels
|
4,217
|
(1,395
|
)
|
-
|
(234
|
)
|
||||||||||
Income (loss) from continuing operations
|
83,998
|
(83,426
|
)
|
38,966
|
(48,416
|
)
|
||||||||||
Discontinued operations, net
|
851,199
|
379,409
|
68,435
|
246,628
|
||||||||||||
Net income
|
935,197
|
295,983
|
107,401
|
198,212
|
||||||||||||
Net (income) loss attributable to Noncontrolling Interests:
|
||||||||||||||||
Operating Partnership
|
(40,780
|
)
|
(13,099
|
)
|
(4,505
|
)
|
(8,932
|
)
|
||||||||
Partially Owned Properties
|
(832
|
)
|
726
|
(414
|
)
|
103
|
||||||||||
Net income attributable to controlling interests
|
893,585
|
283,610
|
102,482
|
189,383
|
||||||||||||
Preferred distributions
|
(13,865
|
)
|
(14,368
|
)
|
(3,466
|
)
|
(3,513
|
)
|
||||||||
Net income available to Common Shares
|
$
|
879,720
|
$
|
269,242
|
$
|
99,016
|
$
|
185,870
|
||||||||
Earnings per share – basic:
|
||||||||||||||||
Income (loss) from continuing operations available to Common Shares
|
$
|
0.23
|
$
|
(0.33
|
)
|
$
|
0.11
|
$
|
(0.17
|
)
|
||||||
Net income available to Common Shares
|
$
|
2.98
|
$
|
0.95
|
$
|
0.33
|
$
|
0.65
|
||||||||
Weighted average Common Shares outstanding
|
294,856
|
282,888
|
295,990
|
285,916
|
||||||||||||
Earnings per share – diluted:
|
||||||||||||||||
Income (loss) from continuing operations available to Common Shares
|
$
|
0.22
|
$
|
(0.33
|
)
|
$
|
0.11
|
$
|
(0.17
|
)
|
||||||
Net income available to Common Shares
|
$
|
2.95
|
$
|
0.95
|
$
|
0.33
|
$
|
0.65
|
||||||||
Weighted average Common Shares outstanding
|
312,065
|
282,888
|
312,731
|
285,916
|
||||||||||||
Distributions declared per Common Share outstanding
|
$
|
1.58
|
$
|
1.47
|
$
|
0.5675
|
$
|
0.4575
|
Equity Residential
|
||||||||||||||||
Consolidated Statements of Funds From Operations and Normalized Funds From Operations
|
||||||||||||||||
(Amounts in thousands except per share data)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Year Ended December 31,
|
Quarter Ended December 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net income
|
$
|
935,197
|
$
|
295,983
|
$
|
107,401
|
$
|
198,212
|
||||||||
Adjustments:
|
||||||||||||||||
Net (income) loss attributable to Noncontrolling Interests –
|
||||||||||||||||
Partially Owned Properties
|
(832
|
)
|
726
|
(414
|
)
|
103
|
||||||||||
Depreciation
|
646,963
|
613,146
|
166,849
|
157,301
|
||||||||||||
Depreciation – Non-real estate additions
|
(5,519
|
)
|
(6,566
|
)
|
(1,317
|
)
|
(1,724
|
)
|
||||||||
Depreciation – Partially Owned and Unconsolidated Properties
|
(3,062
|
)
|
(1,619
|
)
|
(799
|
)
|
(770
|
)
|
||||||||
Net (gain) on sales of unconsolidated entities
|
-
|
(28,101
|
)
|
-
|
-
|
|||||||||||
Discontinued operations:
|
||||||||||||||||
Depreciation
|
16,565
|
60,035
|
384
|
14,352
|
||||||||||||
Net (gain) on sales of discontinued operations
|
(826,489
|
)
|
(297,956
|
)
|
(67,389
|
)
|
(228,418
|
)
|
||||||||
Net incremental gain (loss) on sales of condominium units
|
1,993
|
1,506
|
(57
|
)
|
887
|
|||||||||||
Gain on sale of Equity Corporate Housing (ECH)
|
1,202
|
-
|
180
|
-
|
||||||||||||
FFO (1) (3)
|
766,018
|
637,154
|
204,838
|
139,943
|
||||||||||||
Adjustments (see page 26 for additional detail):
|
||||||||||||||||
Asset impairment and valuation allowances
|
-
|
45,380
|
-
|
45,380
|
||||||||||||
Property acquisition costs and write-off of pursuit costs (other expenses)
|
14,557
|
11,928
|
5,239
|
2,415
|
||||||||||||
Debt extinguishment (gains) losses, including prepayment penalties, preferred share redemptions and non-cash convertible debt discounts
|
12,300
|
8,594
|
3,050
|
1,921
|
||||||||||||
(Gains) losses on sales of non-operating assets, net of income and other tax expense (benefit)
|
(6,976
|
)
|
(80
|
)
|
(422
|
)
|
(657
|
)
|
||||||||
Other miscellaneous non-comparable items
|
(12,369
|
)
|
(6,186
|
)
|
(4,607
|
)
|
(994
|
)
|
||||||||
Normalized FFO (2) (3)
|
$
|
773,530
|
$
|
696,790
|
$
|
208,098
|
$
|
188,008
|
||||||||
FFO (1) (3)
|
$
|
766,018
|
$
|
637,154
|
$
|
204,838
|
$
|
139,943
|
||||||||
Preferred distributions
|
(13,865
|
)
|
(14,368
|
)
|
(3,466
|
)
|
(3,513
|
)
|
||||||||
FFO available to Common Shares and Units - basic (1) (3) (4)
|
$
|
752,153
|
$
|
622,786
|
$
|
201,372
|
$
|
136,430
|
||||||||
FFO available to Common Shares and Units - diluted (1) (3) (4)
|
$
|
752,153
|
$
|
623,288
|
$
|
201,372
|
$
|
136,433
|
||||||||
FFO per share and Unit - basic
|
$
|
2.44
|
$
|
2.10
|
$
|
0.65
|
$
|
0.46
|
||||||||
FFO per share and Unit - diluted
|
$
|
2.41
|
$
|
2.07
|
$
|
0.64
|
$
|
0.45
|
||||||||
Normalized FFO (2) (3)
|
$
|
773,530
|
$
|
696,790
|
$
|
208,098
|
$
|
188,008
|
||||||||
Preferred distributions
|
(13,865
|
)
|
(14,368
|
)
|
(3,466
|
)
|
(3,513
|
)
|
||||||||
Normalized FFO available to Common Shares and Units - basic (2) (3) (4)
|
$
|
759,665
|
$
|
682,422
|
$
|
204,632
|
$
|
184,495
|
||||||||
Normalized FFO available to Common Shares and Units - diluted (2) (3) (4)
|
$
|
759,665
|
$
|
682,924
|
$
|
204,632
|
$
|
184,539
|
||||||||
Normalized FFO per share and Unit - basic
|
$
|
2.47
|
$
|
2.30
|
$
|
0.66
|
$
|
0.62
|
||||||||
Normalized FFO per share and Unit - diluted
|
$
|
2.43
|
$
|
2.27
|
$
|
0.65
|
$
|
0.61
|
||||||||
Weighted average Common Shares and Units outstanding - basic
|
308,062
|
296,527
|
309,120
|
299,363
|
||||||||||||
Weighted average Common Shares and Units outstanding - diluted FFO
|
312,065
|
300,615
|
312,731
|
303,838
|
||||||||||||
Weighted average Common Shares and Units outstanding - diluted Normalized FFO
|
312,065
|
300,615
|
312,731
|
303,942
|
Note:
|
See page 26 for additional detail regarding the adjustments from FFO to Normalized FFO. See page 28 for the definitions, the footnotes referenced above and the reconciliations of EPS to FFO and Normalized FFO.
|
Equity Residential
|
|||||||||||
Consolidated Balance Sheets
|
|||||||||||
(Amounts in thousands except for share amounts)
|
|||||||||||
(Unaudited)
|
|||||||||||
December 31,
|
December 31,
|
||||||||||
2011
|
2010
|
||||||||||
ASSETS
|
|||||||||||
Investment in real estate
|
|||||||||||
Land
|
$
|
4,367,816
|
$
|
4,110,275
|
|||||||
Depreciable property
|
15,554,740
|
15,226,512
|
|||||||||
Projects under development
|
160,190
|
130,337
|
|||||||||
Land held for development
|
325,200
|
235,247
|
|||||||||
Investment in real estate
|
20,407,946
|
19,702,371
|
|||||||||
Accumulated depreciation
|
(4,539,583
|
)
|
(4,337,357
|
)
|
|||||||
Investment in real estate, net
|
15,868,363
|
15,365,014
|
|||||||||
Cash and cash equivalents
|
383,921
|
431,408
|
|||||||||
Investments in unconsolidated entities
|
12,327
|
3,167
|
|||||||||
Deposits – restricted
|
152,237
|
180,987
|
|||||||||
Escrow deposits – mortgage
|
10,692
|
12,593
|
|||||||||
Deferred financing costs, net
|
44,608
|
42,033
|
|||||||||
Other assets
|
187,155
|
148,992
|
|||||||||
Total assets
|
$
|
16,659,303
|
$
|
16,184,194
|
|||||||
LIABILITIES AND EQUITY
|
|||||||||||
Liabilities:
|
|||||||||||
Mortgage notes payable
|
$
|
4,111,487
|
$
|
4,762,896
|
|||||||
Notes, net
|
5,609,574
|
5,185,180
|
|||||||||
Lines of credit
|
-
|
-
|
|||||||||
Accounts payable and accrued expenses
|
35,206
|
39,452
|
|||||||||
Accrued interest payable
|
88,121
|
98,631
|
|||||||||
Other liabilities
|
291,289
|
304,202
|
|||||||||
Security deposits
|
65,286
|
60,812
|
|||||||||
Distributions payable
|
179,079
|
140,905
|
|||||||||
Total liabilities
|
10,380,042
|
10,592,078
|
|||||||||
Commitments and contingencies
|
|||||||||||
Redeemable Noncontrolling Interests – Operating Partnership
|
416,404
|
383,540
|
|||||||||
Equity:
|
|||||||||||
Shareholders' equity:
|
|||||||||||
Preferred Shares of beneficial interest, $0.01 par value;
|
|||||||||||
100,000,000 shares authorized; 1,600,000 shares issued
|
|||||||||||
and outstanding as of December 31, 2011 and December 31, 2010
|
200,000
|
200,000
|
|||||||||
Common Shares of beneficial interest, $0.01 par value;
|
|||||||||||
1,000,000,000 shares authorized; 297,508,185 shares issued
|
|||||||||||
and outstanding as of December 31, 2011 and 290,197,242
|
|||||||||||
shares issued and outstanding as of December 31, 2010
|
2,975
|
2,902
|
|||||||||
Paid in capital
|
5,047,186
|
4,741,521
|
|||||||||
Retained earnings
|
615,572
|
203,581
|
|||||||||
Accumulated other comprehensive (loss)
|
(196,718
|
)
|
(57,818
|
)
|
|||||||
Total shareholders' equity
|
5,669,015
|
5,090,186
|
|||||||||
Noncontrolling Interests:
|
|||||||||||
Operating Partnership
|
119,536
|
110,399
|
|||||||||
Partially Owned Properties
|
74,306
|
7,991
|
|||||||||
Total Noncontrolling Interests
|
193,842
|
118,390
|
|||||||||
Total equity
|
5,862,857
|
5,208,576
|
|||||||||
Total liabilities and equity
|
$
|
16,659,303
|
$
|
16,184,194
|
Equity Residential
|
|||||||||||||||
Portfolio Summary
|
|||||||||||||||
As of December 31, 2011
|
|||||||||||||||
% of Total
|
% of
|
Average
|
|||||||||||||
Apartment
|
Apartment
|
Stabilized
|
Rental
|
||||||||||||
Markets
|
Properties
|
Units
|
Units
|
NOI
|
Rate (1)
|
||||||||||
1
|
New York Metro Area
|
30
|
8,514
|
7.0
|
%
|
13.3
|
%
|
$
|
3,035
|
||||||
2
|
DC Northern Virginia
|
26
|
9,381
|
7.7
|
%
|
11.4
|
%
|
2,056
|
|||||||
3
|
Los Angeles
|
46
|
9,613
|
7.9
|
%
|
9.5
|
%
|
1,787
|
|||||||
4
|
South Florida
|
39
|
12,989
|
10.6
|
%
|
9.5
|
%
|
1,400
|
|||||||
5
|
Boston
|
30
|
6,183
|
5.0
|
%
|
8.2
|
%
|
2,322
|
|||||||
6
|
San Francisco Bay Area
|
37
|
8,628
|
7.1
|
%
|
7.3
|
%
|
1,688
|
|||||||
7
|
Seattle/Tacoma
|
43
|
9,582
|
7.8
|
%
|
7.0
|
%
|
1,403
|
|||||||
8
|
San Diego
|
14
|
4,963
|
4.1
|
%
|
5.1
|
%
|
1,825
|
|||||||
9
|
Denver
|
23
|
7,970
|
6.5
|
%
|
5.0
|
%
|
1,134
|
|||||||
10
|
Phoenix
|
31
|
8,880
|
7.3
|
%
|
4.2
|
%
|
930
|
|||||||
11
|
Suburban Maryland
|
16
|
4,584
|
3.8
|
%
|
3.9
|
%
|
1,489
|
|||||||
12
|
Orlando
|
24
|
7,265
|
6.0
|
%
|
3.8
|
%
|
1,009
|
|||||||
13
|
Orange County, CA
|
11
|
3,490
|
2.9
|
%
|
3.2
|
%
|
1,578
|
|||||||
14
|
Atlanta
|
16
|
4,800
|
3.9
|
%
|
2.5
|
%
|
1,040
|
|||||||
15
|
Inland Empire, CA
|
10
|
3,081
|
2.5
|
%
|
2.4
|
%
|
1,434
|
|||||||
16
|
All Other Markets (2)
|
29
|
7,150
|
5.9
|
%
|
3.7
|
%
|
1,077
|
|||||||
Total
|
425
|
117,073
|
96.0
|
%
|
100.0
|
%
|
1,589
|
||||||||
Military Housing
|
2
|
4,901
|
4.0
|
%
|
-
|
-
|
|||||||||
Grand Total
|
427
|
121,974
|
100.0
|
%
|
100.0
|
%
|
$
|
1,589
|
(1)
|
Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment units for the month of December 2011.
|
(2)
|
All Other Markets - Each individual market is less than 2.0% of stabilized NOI.
|
Note:
|
Projects under development are not included in the Portfolio Summary until construction has been completed, at which time they are included at their projected stabilized NOI.
|
Equity Residential
|
||||||||||||||||
Portfolio as of December 31, 2011
|
||||||||||||||||
Apartment
|
||||||||||||||||
Properties
|
Units
|
|||||||||||||||
Wholly Owned Properties
|
404
|
113,157
|
||||||||||||||
Partially Owned Properties - Consolidated
|
21
|
3,916
|
||||||||||||||
Military Housing
|
2
|
4,901
|
||||||||||||||
427
|
121,974
|
|||||||||||||||
Portfolio Rollforward Q4 2011
|
||||||||||||||||
($ in thousands)
|
||||||||||||||||
Apartment
|
Purchase/
|
|||||||||||||||
Properties
|
Units
|
(Sale) Price
|
Cap Rate
|
|||||||||||||
9/30/2011
|
417
|
119,011
|
||||||||||||||
Acquisitions:
|
||||||||||||||||
Rental Properties:
|
||||||||||||||||
Consolidated - Stabilized
|
11
|
3,669
|
$
|
681,300
|
5.2
|
%
|
||||||||||
Land Parcels (four) (1)
|
-
|
-
|
$
|
183,863
|
||||||||||||
Dispositions:
|
||||||||||||||||
Rental Properties:
|
||||||||||||||||
Consolidated
|
(2
|
)
|
(817
|
)
|
$
|
(98,825
|
)
|
6.2
|
%
|
|||||||
Completed Developments
|
1
|
111
|
||||||||||||||
12/31/2011
|
427
|
121,974
|
||||||||||||||
Portfolio Rollforward 2011
|
||||||||||||||||
($ in thousands)
|
||||||||||||||||
Apartment
|
Purchase/
|
|||||||||||||||
Properties
|
Units
|
(Sale) Price
|
Cap Rate
|
|||||||||||||
12/31/2010
|
451
|
129,604
|
||||||||||||||
Acquisitions:
|
||||||||||||||||
Rental Properties:
|
||||||||||||||||
Consolidated - Stabilized
|
20
|
6,103
|
$
|
1,343,528
|
5.2
|
%
|
||||||||||
Consolidated - Not Stabilized (2)
|
1
|
95
|
$
|
39,520
|
||||||||||||
Land Parcels (seven) (1)(3)
|
-
|
-
|
$
|
202,313
|
||||||||||||
Other (4)
|
-
|
-
|
$
|
11,750
|
||||||||||||
Dispositions:
|
||||||||||||||||
Rental Properties:
|
||||||||||||||||
Consolidated
|
(47
|
)
|
(14,345
|
)
|
$
|
(1,482,239
|
)
|
6.5
|
%
|
|||||||
Land Parcel (one) (5)
|
-
|
-
|
$
|
(22,786
|
)
|
|||||||||||
Completed Developments
|
2
|
361
|
||||||||||||||
Configuration Changes
|
-
|
156
|
||||||||||||||
12/31/2011
|
427
|
121,974
|
(1)
|
Includes a vacant land parcel at 400 Park Avenue South in New York City acquired jointly by the Company and Toll Brothers (NYSE: TOL). The Company's and Toll Brothers' allocated portions of the purchase price were approximately $76.1 million and $57.9 million, respectively. Until the core and shell of the building is complete, the building and land will be owned jointly and are required to be consolidated on the Company's balance sheet. Thereafter, the Company will solely own and control the rental portion of the building (floors 2-22) and Toll Brothers will solely own and control the for sale portion of the building (floors 23-40). Once the core and shell are complete, the Toll Brothers' portion of the property will be deconsolidated from the Company's balance sheet.
|
|
(2)
|
The Company acquired one unoccupied property in the third quarter of 2011 (88 Hillside) that is expected to stabilize at a 6.3% yield on cost.
|
|
(3)
|
Includes entry into a long-term ground lease for a land parcel at 170 Amsterdam Avenue in New York City.
|
|
(4)
|
Represents the acquisition of a 97,000 square foot commercial building adjacent to our Harbor Steps apartment property in downtown Seattle for potential redevelopment.
|
|
(5)
|
Represents the sale of a land parcel, on which the Company no longer planned to develop, in suburban Washington, D.C.
|
Equity Residential
|
|||||||||||||||||||||||
Fourth Quarter 2011 vs. Fourth Quarter 2010
|
|||||||||||||||||||||||
Same Store Results/Statistics
|
|||||||||||||||||||||||
$ in thousands (except for Average Rental Rate) - 105,861 Same Store Apartment Units
|
|||||||||||||||||||||||
Results
|
Statistics
|
||||||||||||||||||||||
Average
|
|||||||||||||||||||||||
Rental
|
|||||||||||||||||||||||
Description
|
Revenues
|
Expenses
|
NOI (1)
|
Rate (2)
|
Occupancy
|
Turnover
|
|||||||||||||||||
Q4 2011
|
$
|
467,059
|
$
|
164,137
|
$
|
302,922
|
$
|
1,550
|
95.0
|
%
|
13.4
|
%
|
|||||||||||
Q4 2010
|
$
|
441,330
|
$
|
159,703
|
$
|
281,627
|
$
|
1,471
|
94.6
|
%
|
12.8
|
%
|
|||||||||||
Change
|
$
|
25,729
|
$
|
4,434
|
$
|
21,295
|
$
|
79
|
0.4
|
%
|
0.6
|
%
|
|||||||||||
Change
|
5.8
|
%
|
2.8
|
%
|
7.6
|
%
|
5.4
|
%
|
|||||||||||||||
Fourth Quarter 2011 vs. Third Quarter 2011
|
|||||||||||||||||||||||
Same Store Results/Statistics
|
|||||||||||||||||||||||
$ in thousands (except for Average Rental Rate) - 110,793 Same Store Apartment Units
|
|||||||||||||||||||||||
Results
|
Statistics
|
||||||||||||||||||||||
Average
|
|||||||||||||||||||||||
Rental
|
|||||||||||||||||||||||
Description
|
Revenues
|
Expenses
|
NOI (1)
|
Rate (2)
|
Occupancy
|
Turnover
|
|||||||||||||||||
Q4 2011
|
$
|
495,048
|
$
|
172,675
|
$
|
322,373
|
$
|
1,569
|
95.0
|
%
|
13.2
|
%
|
|||||||||||
Q3 2011
|
$
|
493,902
|
$
|
179,173
|
$
|
314,729
|
$
|
1,560
|
95.4
|
%
|
17.7
|
%
|
|||||||||||
Change
|
$
|
1,146
|
$
|
(6,498
|
)
|
$
|
7,644
|
$
|
9
|
(0.4
|
%)
|
(4.5
|
%)
|
||||||||||
Change
|
0.2
|
%
|
(3.6
|
%)
|
2.4
|
%
|
0.6
|
%
|
|||||||||||||||
2011 vs. 2010
|
|||||||||||||||||||||||
Same Store Results/Statistics
|
|||||||||||||||||||||||
$ in thousands (except for Average Rental Rate) - 101,312 Same Store Apartment Units
|
|||||||||||||||||||||||
Results
|
Statistics
|
||||||||||||||||||||||
Average
|
|||||||||||||||||||||||
Rental
|
|||||||||||||||||||||||
Description
|
Revenues
|
Expenses
|
NOI (1)
|
Rate (2)
|
Occupancy
|
Turnover
|
|||||||||||||||||
2011
|
$
|
1,712,428
|
$
|
617,712
|
$
|
1,094,716
|
$
|
1,481
|
95.2
|
%
|
44.4
|
%
|
|||||||||||
2010
|
$
|
1,630,482
|
$
|
614,210
|
$
|
1,016,272
|
$
|
1,417
|
94.8
|
%
|
44.1
|
%
|
|||||||||||
Change
|
$
|
81,946
|
$
|
3,502
|
$
|
78,444
|
$
|
64
|
0.4
|
%
|
0.3
|
%
|
|||||||||||
Change
|
5.0
|
%
|
0.6
|
%
|
7.7
|
%
|
4.5
|
%
|
(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 its operating performance because it is a direct measure of the actual operating results of the Company's apartment communities. See page 28 for reconciliations from operating income.
|
|
(2)
|
Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment units for the period.
|
Equity Residential
|
||||||||||||||||||||||||||||
Fourth Quarter 2011 vs. Fourth Quarter 2010
|
||||||||||||||||||||||||||||
Same Store Results/Statistics by Market
|
||||||||||||||||||||||||||||
Increase (Decrease) from Prior Year's Quarter
|
||||||||||||||||||||||||||||
Q4 2011
|
Q4 2011
|
Q4 2011
|
||||||||||||||||||||||||||
% of
|
Average
|
Weighted
|
Average
|
|||||||||||||||||||||||||
Apartment
|
Actual
|
Rental
|
Average
|
Rental
|
||||||||||||||||||||||||
Markets
|
Units
|
NOI
|
Rate (1)
|
Occupancy %
|
Revenues
|
Expenses
|
NOI
|
Rate (1)
|
Occupancy
|
|||||||||||||||||||
1
|
New York Metro Area
|
7,277
|
12.6
|
%
|
$
|
3,070
|
96.0
|
%
|
7.4
|
%
|
5.0
|
%
|
9.1
|
%
|
6.1
|
%
|
1.1
|
%
|
||||||||||
2
|
DC Northern Virginia
|
7,974
|
10.7
|
%
|
2,014
|
95.1
|
%
|
6.0
|
%
|
5.6
|
%
|
6.2
|
%
|
6.2
|
%
|
(0.1
|
%)
|
|||||||||||
3
|
South Florida
|
12,113
|
9.6
|
%
|
1,361
|
94.4
|
%
|
4.8
|
%
|
2.6
|
%
|
6.1
|
%
|
4.4
|
%
|
0.3
|
%
|
|||||||||||
4
|
Los Angeles
|
7,688
|
8.2
|
%
|
1,747
|
95.6
|
%
|
3.6
|
%
|
7.5
|
%
|
1.5
|
%
|
2.8
|
%
|
0.7
|
%
|
|||||||||||
5
|
Boston
|
5,347
|
7.9
|
%
|
2,300
|
96.0
|
%
|
5.3
|
%
|
(2.2
|
%)
|
9.4
|
%
|
5.0
|
%
|
0.3
|
%
|
|||||||||||
6
|
San Francisco Bay Area
|
6,056
|
7.2
|
%
|
1,854
|
95.0
|
%
|
10.2
|
%
|
0.9
|
%
|
15.1
|
%
|
9.6
|
%
|
0.5
|
%
|
|||||||||||
7
|
Seattle/Tacoma
|
8,760
|
7.2
|
%
|
1,398
|
94.1
|
%
|
6.1
|
%
|
3.5
|
%
|
7.7
|
%
|
5.0
|
%
|
1.0
|
%
|
|||||||||||
8
|
Denver
|
7,970
|
5.9
|
%
|
1,136
|
95.1
|
%
|
8.9
|
%
|
2.8
|
%
|
11.8
|
%
|
8.7
|
%
|
0.1
|
%
|
|||||||||||
9
|
Phoenix
|
8,880
|
5.0
|
%
|
929
|
95.0
|
%
|
6.8
|
%
|
(0.6
|
%)
|
11.4
|
%
|
6.2
|
%
|
0.4
|
%
|
|||||||||||
10
|
San Diego
|
4,284
|
4.8
|
%
|
1,724
|
94.4
|
%
|
2.8
|
%
|
(3.9
|
%)
|
6.0
|
%
|
3.1
|
%
|
(0.3
|
%)
|
|||||||||||
11
|
Orlando
|
7,265
|
4.3
|
%
|
1,012
|
94.7
|
%
|
4.9
|
%
|
4.3
|
%
|
5.4
|
%
|
4.3
|
%
|
0.6
|
%
|
|||||||||||
12
|
Orange County, CA
|
3,490
|
3.7
|
%
|
1,586
|
95.8
|
%
|
4.9
|
%
|
(1.5
|
%)
|
7.9
|
%
|
3.8
|
%
|
1.0
|
%
|
|||||||||||
13
|
Suburban Maryland
|
4,005
|
3.4
|
%
|
1,388
|
94.5
|
%
|
2.6
|
%
|
4.3
|
%
|
1.8
|
%
|
2.7
|
%
|
(0.1
|
%)
|
|||||||||||
14
|
Atlanta
|
4,800
|
2.9
|
%
|
1,040
|
96.0
|
%
|
5.4
|
%
|
0.2
|
%
|
9.1
|
%
|
5.3
|
%
|
0.1
|
%
|
|||||||||||
15
|
Inland Empire, CA
|
3,081
|
2.7
|
%
|
1,432
|
94.5
|
%
|
2.6
|
%
|
4.1
|
%
|
1.9
|
%
|
2.6
|
%
|
0.0
|
%
|
|||||||||||
16
|
All Other Markets
|
6,871
|
3.9
|
%
|
1,051
|
94.8
|
%
|
6.0
|
%
|
3.4
|
%
|
8.0
|
%
|
5.3
|
%
|
0.7
|
%
|
|||||||||||
Total
|
105,861
|
100.0
|
%
|
$
|
1,550
|
95.0
|
%
|
5.8
|
%
|
2.8
|
%
|
7.6
|
%
|
5.4
|
%
|
0.4
|
%
|
(1)
|
Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment units for the period.
|
|
Equity Residential
|
||||||||||||||||||||||||||||
Fourth Quarter 2011 vs. Third Quarter 2011
|
||||||||||||||||||||||||||||
Same Store Results/Statistics by Market
|
||||||||||||||||||||||||||||
Increase (Decrease) from Prior Quarter
|
||||||||||||||||||||||||||||
Q4 2011
|
Q4 2011
|
Q4 2011
|
||||||||||||||||||||||||||
% of
|
Average
|
Weighted
|
Average
|
|||||||||||||||||||||||||
Apartment
|
Actual
|
Rental
|
Average
|
Rental
|
||||||||||||||||||||||||
Markets
|
Units
|
NOI
|
Rate (1)
|
Occupancy %
|
Revenues
|
Expenses
|
NOI
|
Rate (1)
|
Occupancy
|
|||||||||||||||||||
1
|
New York Metro Area
|
7,767
|
12.6
|
%
|
$
|
3,036
|
96.1
|
%
|
1.0
|
%
|
(1.9
|
%)
|
3.1
|
%
|
1.5
|
%
|
(0.4
|
%)
|
||||||||||
2
|
DC Northern Virginia
|
8,822
|
10.9
|
%
|
1,994
|
95.1
|
%
|
(0.5
|
%)
|
(1.1
|
%)
|
(0.3
|
%)
|
0.5
|
%
|
(1.0
|
%)
|
|||||||||||
3
|
South Florida
|
12,742
|
9.8
|
%
|
1,386
|
94.5
|
%
|
(0.1
|
%)
|
(0.8
|
%)
|
0.3
|
%
|
(0.4
|
%)
|
0.3
|
%
|
|||||||||||
4
|
Los Angeles
|
8,762
|
8.9
|
%
|
1,774
|
95.7
|
%
|
0.5
|
%
|
4.3
|
%
|
(1.4
|
%)
|
0.1
|
%
|
0.3
|
%
|
|||||||||||
5
|
Boston
|
5,821
|
8.4
|
%
|
2,345
|
96.0
|
%
|
1.1
|
%
|
(12.0
|
%)
|
8.4
|
%
|
1.2
|
%
|
(0.1
|
%)
|
|||||||||||
6
|
Seattle/Tacoma
|
9,582
|
7.4
|
%
|
1,392
|
94.0
|
%
|
(0.5
|
%)
|
(3.8
|
%)
|
1.5
|
%
|
0.0
|
%
|
(0.5
|
%)
|
|||||||||||
7
|
San Francisco Bay Area
|
6,194
|
6.9
|
%
|
1,869
|
95.0
|
%
|
1.9
|
%
|
(5.9
|
%)
|
6.1
|
%
|
2.8
|
%
|
(0.8
|
%)
|
|||||||||||
8
|
Denver
|
7,970
|
5.6
|
%
|
1,136
|
95.1
|
%
|
0.9
|
%
|
(7.8
|
%)
|
5.4
|
%
|
1.4
|
%
|
(0.5
|
%)
|
|||||||||||
9
|
Phoenix
|
8,880
|
4.7
|
%
|
929
|
95.0
|
%
|
0.4
|
%
|
(7.4
|
%)
|
5.3
|
%
|
0.2
|
%
|
0.2
|
%
|
|||||||||||
10
|
San Diego
|
4,284
|
4.5
|
%
|
1,724
|
94.4
|
%
|
(0.7
|
%)
|
(1.6
|
%)
|
(0.2
|
%)
|
0.2
|
%
|
(0.9
|
%)
|
|||||||||||
11
|
Orlando
|
7,265
|
4.1
|
%
|
1,012
|
94.7
|
%
|
(1.2
|
%)
|
(10.5
|
%)
|
5.3
|
%
|
(0.4
|
%)
|
(0.8
|
%)
|
|||||||||||
12
|
Suburban Maryland
|
4,462
|
3.8
|
%
|
1,452
|
94.6
|
%
|
(1.1
|
%)
|
(4.3
|
%)
|
0.6
|
%
|
(0.8
|
%)
|
(0.2
|
%)
|
|||||||||||
13
|
Orange County, CA
|
3,490
|
3.4
|
%
|
1,586
|
95.8
|
%
|
1.1
|
%
|
(4.6
|
%)
|
3.8
|
%
|
0.8
|
%
|
0.3
|
%
|
|||||||||||
14
|
Atlanta
|
4,800
|
2.7
|
%
|
1,040
|
96.0
|
%
|
0.0
|
%
|
(7.8
|
%)
|
5.7
|
%
|
0.3
|
%
|
(0.3
|
%)
|
|||||||||||
15
|
Inland Empire, CA
|
3,081
|
2.6
|
%
|
1,432
|
94.5
|
%
|
(0.4
|
%)
|
(3.1
|
%)
|
1.0
|
%
|
(0.3
|
%)
|
(0.1
|
%)
|
|||||||||||
16
|
All Other Markets
|
6,871
|
3.7
|
%
|
1,051
|
94.8
|
%
|
(0.7
|
%)
|
0.5
|
%
|
(1.6
|
%)
|
0.2
|
%
|
(0.9
|
%)
|
|||||||||||
Total
|
110,793
|
100.0
|
%
|
$
|
1,569
|
95.0
|
%
|
0.2
|
%
|
(3.6
|
%)
|
2.4
|
%
|
0.6
|
%
|
(0.4
|
%)
|
(1)
|
Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment units for the period.
|
|
Equity Residential
|
||||||||||||||||||||||||||||
2011 vs. 2010
|
||||||||||||||||||||||||||||
Same Store Results/Statistics by Market
|
||||||||||||||||||||||||||||
Increase (Decrease) from Prior Year
|
||||||||||||||||||||||||||||
2011
|
2011
|
2011
|
||||||||||||||||||||||||||
% of
|
Average
|
Weighted
|
Average
|
|||||||||||||||||||||||||
Apartment
|
Actual
|
Rental
|
Average
|
Rental
|
||||||||||||||||||||||||
Markets
|
Units
|
NOI
|
Rate (1)
|
Occupancy %
|
Revenues
|
Expenses
|
NOI
|
Rate (1)
|
Occupancy
|
|||||||||||||||||||
1
|
South Florida
|
12,113
|
10.4
|
%
|
$
|
1,349
|
94.6
|
%
|
4.5
|
%
|
(0.2
|
%)
|
7.6
|
%
|
4.4
|
%
|
0.1
|
%
|
||||||||||
2
|
DC Northern Virginia
|
7,247
|
10.2
|
%
|
1,919
|
95.7
|
%
|
6.2
|
%
|
1.3
|
%
|
8.5
|
%
|
6.2
|
%
|
0.0
|
%
|
|||||||||||
3
|
New York Metro Area
|
5,887
|
10.2
|
%
|
2,746
|
96.1
|
%
|
5.9
|
%
|
5.7
|
%
|
6.1
|
%
|
5.5
|
%
|
0.4
|
%
|
|||||||||||
4
|
Los Angeles
|
7,463
|
8.8
|
%
|
1,727
|
95.1
|
%
|
2.7
|
%
|
(0.8
|
%)
|
4.6
|
%
|
2.1
|
%
|
0.6
|
%
|
|||||||||||
5
|
Boston
|
5,347
|
8.2
|
%
|
2,259
|
96.0
|
%
|
5.3
|
%
|
(1.9
|
%)
|
9.6
|
%
|
4.4
|
%
|
0.8
|
%
|
|||||||||||
6
|
Seattle/Tacoma
|
7,873
|
7.0
|
%
|
1,390
|
94.3
|
%
|
5.8
|
%
|
0.8
|
%
|
9.1
|
%
|
4.5
|
%
|
1.1
|
%
|
|||||||||||
7
|
San Francisco Bay Area
|
5,512
|
6.8
|
%
|
1,786
|
95.7
|
%
|
7.6
|
%
|
1.3
|
%
|
11.2
|
%
|
6.6
|
%
|
0.9
|
%
|
|||||||||||
8
|
Denver
|
7,762
|
6.0
|
%
|
1,102
|
95.3
|
%
|
7.3
|
%
|
1.7
|
%
|
10.2
|
%
|
7.2
|
%
|
0.0
|
%
|
|||||||||||
9
|
Phoenix
|
8,880
|
5.2
|
%
|
911
|
95.1
|
%
|
6.0
|
%
|
(2.3
|
%)
|
11.8
|
%
|
5.2
|
%
|
0.7
|
%
|
|||||||||||
10
|
San Diego
|
4,103
|
4.9
|
%
|
1,691
|
94.9
|
%
|
2.2
|
%
|
(1.9
|
%)
|
4.2
|
%
|
2.0
|
%
|
0.1
|
%
|
|||||||||||
11
|
Orlando
|
7,265
|
4.6
|
%
|
1,004
|
95.1
|
%
|
4.1
|
%
|
2.6
|
%
|
5.1
|
%
|
3.4
|
%
|
0.7
|
%
|
|||||||||||
12
|
Suburban Maryland
|
4,005
|
3.8
|
%
|
1,384
|
94.9
|
%
|
3.6
|
%
|
(1.9
|
%)
|
6.7
|
%
|
3.7
|
%
|
(0.2
|
%)
|
|||||||||||
13
|
Orange County, CA
|
3,307
|
3.7
|
%
|
1,548
|
95.5
|
%
|
3.3
|
%
|
(1.2
|
%)
|
5.4
|
%
|
2.7
|
%
|
0.6
|
%
|
|||||||||||
14
|
Inland Empire, CA
|
3,081
|
3.0
|
%
|
1,422
|
94.8
|
%
|
3.1
|
%
|
(1.5
|
%)
|
5.5
|
%
|
3.1
|
%
|
0.0
|
%
|
|||||||||||
15
|
Atlanta
|
4,596
|
2.9
|
%
|
1,028
|
96.1
|
%
|
4.1
|
%
|
(1.4
|
%)
|
8.5
|
%
|
4.0
|
%
|
0.1
|
%
|
|||||||||||
16
|
All Other Markets
|
6,871
|
4.3
|
%
|
1,033
|
95.2
|
%
|
5.3
|
%
|
1.7
|
%
|
8.2
|
%
|
4.4
|
%
|
0.8
|
%
|
|||||||||||
Total
|
101,312
|
100.0
|
%
|
$
|
1,481
|
95.2
|
%
|
5.0
|
%
|
0.6
|
%
|
7.7
|
%
|
4.5
|
%
|
0.4
|
%
|
(1)
|
Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment units for the period.
|
|
Equity Residential
|
|||||||||||||||||
Fourth Quarter 2011 vs. Fourth Quarter 2010
|
|||||||||||||||||
Same Store Operating Expenses
|
|||||||||||||||||
$ in thousands - 105,861 Same Store Apartment Units
|
|||||||||||||||||
% of Actual
|
|||||||||||||||||
Q4 2011
|
|||||||||||||||||
Actual
|
Actual
|
$
|
%
|
Operating
|
|||||||||||||
Q4 2011
|
Q4 2010
|
Change
|
Change
|
Expenses
|
|||||||||||||
Real estate taxes
|
$
|
47,857
|
$
|
46,728
|
$
|
1,129
|
2.4
|
%
|
29.2
|
%
|
|||||||
On-site payroll (1)
|
37,428
|
35,355
|
2,073
|
5.9
|
%
|
22.8
|
%
|
||||||||||
Utilities (2)
|
24,817
|
24,688
|
129
|
0.5
|
%
|
15.1
|
%
|
||||||||||
Repairs and maintenance (3)
|
23,158
|
21,958
|
1,200
|
5.5
|
%
|
14.1
|
%
|
||||||||||
Property management costs (4)
|
18,122
|
17,653
|
469
|
2.7
|
%
|
11.0
|
%
|
||||||||||
Insurance
|
5,066
|
5,383
|
(317
|
)
|
(5.9
|
%)
|
3.1
|
%
|
|||||||||
Leasing and advertising
|
3,044
|
3,490
|
(446
|
)
|
(12.8
|
%)
|
1.9
|
%
|
|||||||||
Other on-site operating expenses (5)
|
4,645
|
4,448
|
197
|
4.4
|
%
|
2.8
|
%
|
||||||||||
Same store operating expenses
|
$
|
164,137
|
$
|
159,703
|
$
|
4,434
|
2.8
|
%
|
100.0
|
%
|
|||||||
2011 vs. 2010
|
|||||||||||||||||
Same Store Operating Expenses
|
|||||||||||||||||
$ in thousands - 101,312 Same Store Apartment Units
|
|||||||||||||||||
% of Actual
|
|||||||||||||||||
2011
|
|||||||||||||||||
Actual
|
Actual
|
$
|
%
|
Operating
|
|||||||||||||
2011
|
2010
|
Change
|
Change
|
Expenses
|
|||||||||||||
Real estate taxes
|
$
|
169,432
|
$
|
166,675
|
$
|
2,757
|
1.7
|
%
|
27.4
|
%
|
|||||||
On-site payroll (1)
|
144,346
|
144,878
|
(532
|
)
|
(0.4
|
%)
|
23.4
|
%
|
|||||||||
Utilities (2)
|
96,702
|
95,083
|
1,619
|
1.7
|
%
|
15.7
|
%
|
||||||||||
Repairs and maintenance (3)
|
89,549
|
89,128
|
421
|
0.5
|
%
|
14.5
|
%
|
||||||||||
Property management costs (4)
|
68,497
|
65,219
|
3,278
|
5.0
|
%
|
11.1
|
%
|
||||||||||
Insurance
|
19,394
|
20,605
|
(1,211
|
)
|
(5.9
|
%)
|
3.1
|
%
|
|||||||||
Leasing and advertising
|
11,515
|
14,266
|
(2,751
|
)
|
(19.3
|
%)
|
1.9
|
%
|
|||||||||
Other on-site operating expenses (5)
|
18,277
|
18,356
|
(79
|
)
|
(0.4
|
%)
|
2.9
|
%
|
|||||||||
Same store operating expenses
|
$
|
617,712
|
$
|
614,210
|
$
|
3,502
|
0.6
|
%
|
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.
|
|
Equity Residential
|
|||||||||||
Debt Summary as of December 31, 2011
|
|||||||||||
(Amounts in thousands)
|
|||||||||||
Weighted
|
|||||||||||
Weighted
|
Average
|
||||||||||
Average
|
Maturities
|
||||||||||
Amounts (1)
|
% of Total
|
Rates (1)
|
(years)
|
||||||||
Secured
|
$
|
4,111,487
|
42.3
|
%
|
4.84
|
%
|
8.3
|
||||
Unsecured
|
5,609,574
|
57.7
|
%
|
5.15
|
%
|
5.2
|
|||||
Total
|
$
|
9,721,061
|
100.0
|
%
|
5.01
|
%
|
6.5
|
||||
Fixed Rate Debt:
|
|||||||||||
Secured - Conventional
|
$
|
3,581,203
|
36.8
|
%
|
5.56
|
%
|
6.9
|
||||
Unsecured - Public/Private
|
4,803,191
|
49.4
|
%
|
5.84
|
%
|
5.9
|
|||||
Fixed Rate Debt
|
8,384,394
|
86.2
|
%
|
5.71
|
%
|
6.3
|
|||||
Floating Rate Debt:
|
|||||||||||
Secured - Conventional
|
64,428
|
0.7
|
%
|
3.16
|
%
|
1.5
|
|||||
Secured - Tax Exempt
|
465,856
|
4.8
|
%
|
0.23
|
%
|
20.9
|
|||||
Unsecured - Public/Private
|
806,383
|
8.3
|
%
|
1.67
|
%
|
0.9
|
|||||
Unsecured - Revolving Credit Facility (2)
|
-
|
-
|
1.42
|
%
|
2.5
|
||||||
Floating Rate Debt
|
1,336,667
|
13.8
|
%
|
1.36
|
%
|
7.6
|
|||||
Total
|
$
|
9,721,061
|
100.0
|
%
|
5.01
|
%
|
6.5
|
(1)
|
Net of the effect of any derivative instruments. Weighted average rates are for the year ended December 31, 2011.
|
|
(2)
|
On July 13, 2011, the Company 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. Subsequent to year-end, the Company amended this facility to increase available borrowings by $500.0 million to $1.75 billion. The terms did not change, including the July 13, 2014 maturity date.
|
|
Note: The Company capitalized interest of approximately $9.1 million and $13.0 million during the years ended December 31, 2011 and 2010, respectively. The Company capitalized interest of approximately $3.2 million and $2.8 million during the quarters ended December 31, 2011 and 2010, respectively.
|
||
Debt Maturity Schedule as of December 31, 2011
|
|||||||||||||||||||
(Amounts in thousands)
|
|||||||||||||||||||
Weighted
|
Weighted
|
||||||||||||||||||
Average Rates
|
Average
|
||||||||||||||||||
Fixed
|
Floating
|
on Fixed
|
Rates on
|
||||||||||||||||
Year
|
Rate (1)
|
Rate (1)
|
Total
|
% of Total
|
Rate Debt (1)
|
Total Debt (1)
|
|||||||||||||
2012
|
$
|
625,227
|
$
|
536,355
|
(2)
|
$
|
1,161,582
|
11.9
|
%
|
6.04
|
%
|
3.72
|
%
|
||||||
2013
|
272,925
|
306,750
|
579,675
|
6.0
|
%
|
6.71
|
%
|
4.88
|
%
|
||||||||||
2014
|
566,479
|
21,861
|
588,340
|
6.1
|
%
|
5.32
|
%
|
5.24
|
%
|
||||||||||
2015
|
419,049
|
(149
|
)
|
(3)
|
418,900
|
4.3
|
%
|
6.31
|
%
|
6.31
|
%
|
||||||||
2016
|
1,190,187
|
(149
|
)
|
(3)
|
1,190,038
|
12.2
|
%
|
5.34
|
%
|
5.34
|
%
|
||||||||
2017
|
1,355,457
|
306
|
1,355,763
|
13.9
|
%
|
5.87
|
%
|
5.87
|
%
|
||||||||||
2018
|
80,395
|
16,267
|
96,662
|
1.0
|
%
|
5.72
|
%
|
4.91
|
%
|
||||||||||
2019
|
801,387
|
20,617
|
822,004
|
8.5
|
%
|
5.49
|
%
|
5.36
|
%
|
||||||||||
2020
|
1,671,455
|
659
|
1,672,114
|
17.2
|
%
|
5.50
|
%
|
5.50
|
%
|
||||||||||
2021
|
1,165,332
|
706
|
1,166,038
|
12.0
|
%
|
4.64
|
%
|
4.64
|
%
|
||||||||||
2022+
|
236,501
|
433,444
|
669,945
|
6.9
|
%
|
6.75
|
%
|
2.84
|
%
|
||||||||||
Total
|
$
|
8,384,394
|
$
|
1,336,667
|
$
|
9,721,061
|
100.0
|
%
|
5.56
|
%
|
5.00
|
%
|
(1)
|
Net of the effect of any derivative instruments. Weighted average rates are as of December 31, 2011.
|
|
(2)
|
Effective April 5, 2011, the Company exercised the second of its two one-year extension options for its $500.0 million term loan facility and as a result, the maturity date is now October 5, 2012.
|
|
(3)
|
There is no floating rate debt maturing in 2015 and 2016. The amounts above represent amortization of discounts on floating rate debt.
|
|
Equity Residential
|
|||||||||||||||||||
Unsecured Debt Summary as of December 31, 2011
|
|||||||||||||||||||
(Amounts in thousands)
|
|||||||||||||||||||
Unamortized
|
|||||||||||||||||||
Coupon
|
Due
|
Face
|
Premium/
|
Net
|
|||||||||||||||
Rate
|
Date
|
Amount
|
(Discount)
|
Balance
|
|||||||||||||||
Fixed Rate Notes:
|
|||||||||||||||||||
6.625
|
%
|
03/15/12
|
$
|
253,858
|
$
|
(46
|
)
|
$
|
253,812
|
||||||||||
5.500
|
%
|
10/01/12
|
222,133
|
(164
|
)
|
221,969
|
|||||||||||||
5.200
|
%
|
04/01/13
|
(1)
|
400,000
|
(148
|
)
|
399,852
|
||||||||||||
Fair Value Derivative Adjustments
|
(1)
|
(300,000
|
)
|
-
|
(300,000
|
)
|
|||||||||||||
5.250
|
%
|
09/15/14
|
500,000
|
(167
|
)
|
499,833
|
|||||||||||||
6.584
|
%
|
04/13/15
|
300,000
|
(359
|
)
|
299,641
|
|||||||||||||
5.125
|
%
|
03/15/16
|
500,000
|
(224
|
)
|
499,776
|
|||||||||||||
5.375
|
%
|
08/01/16
|
400,000
|
(850
|
)
|
399,150
|
|||||||||||||
5.750
|
%
|
06/15/17
|
650,000
|
(2,797
|
)
|
647,203
|
|||||||||||||
7.125
|
%
|
10/15/17
|
150,000
|
(376
|
)
|
149,624
|
|||||||||||||
4.750
|
%
|
07/15/20
|
600,000
|
(3,891
|
)
|
596,109
|
|||||||||||||
4.625
|
%
|
12/15/21
|
1,000,000
|
(3,778
|
)
|
996,222
|
|||||||||||||
7.570
|
%
|
08/15/26
|
140,000
|
-
|
140,000
|
||||||||||||||
4,815,991
|
(12,800
|
)
|
4,803,191
|
||||||||||||||||
Floating Rate Notes:
|
|||||||||||||||||||
04/01/13
|
(1)
|
300,000
|
-
|
300,000
|
|||||||||||||||
Fair Value Derivative Adjustments
|
(1)
|
6,383
|
-
|
6,383
|
|||||||||||||||
Term Loan Facility
|
LIBOR+0.50%
|
10/05/12
|
(2)(3)
|
500,000
|
-
|
500,000
|
|||||||||||||
806,383
|
-
|
806,383
|
|||||||||||||||||
Revolving Credit Facility:
|
LIBOR+1.15%
|
07/13/14
|
(2)(4)
|
-
|
-
|
-
|
|||||||||||||
Total Unsecured Debt
|
$
|
5,622,374
|
$
|
(12,800
|
)
|
$
|
5,609,574
|
(1)
|
Fair value interest rate swaps convert $300.0 million of the 5.200% notes due April 1, 2013 to a floating interest rate.
|
|
(2)
|
Facilities are private. All other unsecured debt is public.
|
|
(3)
|
Effective April 5, 2011, the Company exercised the second of its two one-year extension options for its $500.0 million term loan facility and as a result, the maturity date is now October 5, 2012. Subsequent to year-end, the Company entered into a new senior unsecured $500.0 million delayed draw term loan facility that may be drawn anytime on or before July 4, 2012 and is currently undrawn. If the Company elects to draw on this facility, the full amount of the principal will be funded in a single borrowing and the maturity date will be January 4, 2013, subject to two one-year extension options exercisable by the Company. The interest rate on advances under the new term loan facility will generally be LIBOR plus a spread (currently 1.25%), which is dependent on the credit rating of the Company's long term debt.
|
|
(4)
|
On July 13, 2011, the Company 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. Subsequent to year-end, the Company amended this facility to increase available borrowings by $500.0 million to $1.75 billion. The terms did not change, including the July 13, 2014 maturity date. As of January 31, 2012, there was approximately $1.72 billion available on the Company's unsecured revolving credit facility.
|
|
Equity Residential
|
||||||
Selected Unsecured Public Debt Covenants
|
||||||
December 31,
|
September 30,
|
|||||
2011
|
2011
|
|||||
Total Debt to Adjusted Total Assets (not to exceed 60%)
|
46.0
|
%
|
43.6
|
%
|
||
Secured Debt to Adjusted Total Assets (not to exceed 40%)
|
19.4
|
%
|
20.5
|
%
|
||
Consolidated Income Available for Debt Service to
|
||||||
Maximum Annual Service Charges
|
||||||
(must be at least 1.5 to 1)
|
2.59
|
2.81
|
||||
Total Unsecured Assets to Unsecured Debt
|
259.9
|
%
|
293.2
|
%
|
||
(must be at least 150%)
|
These selected covenants relate to ERP Operating Limited Partnership's ("ERPOP") outstanding unsecured public debt. Equity Residential is the general partner of ERPOP.
|
Equity Residential
|
||||||||||||||||||||
Capital Structure as of December 31, 2011
|
||||||||||||||||||||
(Amounts in thousands except for share/unit and per share amounts)
|
||||||||||||||||||||
Secured Debt
|
$
|
4,111,487
|
42.3
|
%
|
||||||||||||||||
Unsecured Debt
|
5,609,574
|
57.7
|
%
|
|||||||||||||||||
Total Debt
|
9,721,061
|
100.0
|
%
|
35.1
|
%
|
|||||||||||||||
Common Shares (includes Restricted Shares)
|
297,508,185
|
95.7
|
%
|
|||||||||||||||||
Units (includes OP Units and LTIP Units)
|
13,492,543
|
4.3
|
%
|
|||||||||||||||||
Total Shares and Units
|
311,000,728
|
100.0
|
%
|
|||||||||||||||||
Common Share Price at December 31, 2011
|
$
|
57.03
|
||||||||||||||||||
17,736,372
|
98.9
|
%
|
||||||||||||||||||
Perpetual Preferred Equity (see below)
|
200,000
|
1.1
|
%
|
|||||||||||||||||
Total Equity
|
17,936,372
|
100.0
|
%
|
64.9
|
%
|
|||||||||||||||
Total Market Capitalization
|
$
|
27,657,433
|
100.0
|
%
|
||||||||||||||||
Perpetual Preferred Equity as of December 31, 2011
|
||||||||||||||||||||
(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 Unit
|
|||||||||||
Weighted Average Amounts Outstanding
|
|||||||||||
2011
|
2010
|
Q411
|
Q410
|
||||||||
Weighted Average Amounts Outstanding for Net Income Purposes:
|
|||||||||||
Common Shares - basic
|
294,855,772
|
282,887,601
|
295,989,703
|
285,915,811
|
|||||||
Shares issuable from assumed conversion/vesting of (1):
|
|||||||||||
- OP Units
|
13,205,924
|
-
|
13,130,118
|
-
|
|||||||
- long-term compensation shares/units
|
4,003,066
|
-
|
3,611,022
|
-
|
|||||||
Total Common Shares and Units - diluted (1)
|
312,064,762
|
282,887,601
|
312,730,843
|
285,915,811
|
|||||||
Weighted Average Amounts Outstanding for FFO and Normalized
|
|||||||||||
FFO Purposes:
|
|||||||||||
Common Shares - basic
|
294,855,772
|
282,887,601
|
295,989,703
|
285,915,811
|
|||||||
OP Units - basic
|
13,205,924
|
13,639,866
|
13,130,118
|
13,446,804
|
|||||||
FFO:
|
|||||||||||
Total Common Shares and OP Units - basic
|
308,061,696
|
296,527,467
|
309,119,821
|
299,362,615
|
|||||||
Shares issuable from assumed conversion/vesting of:
|
|||||||||||
- convertible preferred shares/units
|
-
|
325,103
|
-
|
10,377
|
|||||||
- long-term compensation shares/units
|
4,003,066
|
3,762,390
|
3,611,022
|
4,465,378
|
|||||||
Total Common Shares and Units - diluted
|
312,064,762
|
300,614,960
|
312,730,843
|
303,838,370
|
|||||||
Normalized FFO:
|
|||||||||||
Total Common Shares and OP Units - basic
|
308,061,696
|
296,527,467
|
309,119,821
|
299,362,615
|
|||||||
Shares issuable from assumed conversion/vesting of:
|
|||||||||||
- convertible preferred shares/units
|
-
|
325,103
|
-
|
114,425
|
|||||||
- long-term compensation shares/units
|
4,003,066
|
3,762,390
|
3,611,022
|
4,465,378
|
|||||||
Total Common Shares and Units - diluted
|
312,064,762
|
300,614,960
|
312,730,843
|
303,942,418
|
|||||||
Period Ending Amounts Outstanding:
|
|||||||||||
Common Shares (includes Restricted Shares)
|
297,508,185
|
290,197,242
|
|||||||||
Units (includes OP Units and LTIP Units)
|
13,492,543
|
13,612,037
|
|||||||||
Total Shares and Units
|
311,000,728
|
303,809,279
|
(1)
|
Potential common shares issuable from the assumed conversion of OP Units and the exercise/vesting of long-term compensation shares/units are automatically anti-dilutive and therefore excluded from the diluted earnings per share calculation as the Company had a loss from continuing operations for the year and quarter ended December 31, 2010.
|
Equity Residential
|
||||||||||||||||||
Partially Owned Entities as of December 31, 2011
|
||||||||||||||||||
(Amounts in thousands except for project and apartment unit amounts)
|
||||||||||||||||||
Consolidated
|
||||||||||||||||||
Development Projects
|
||||||||||||||||||
Held for
|
||||||||||||||||||
and/or Under
|
Completed
|
|||||||||||||||||
Development
|
and Stabilized
|
Other
|
Total
|
|||||||||||||||
Total projects (1)
|
-
|
2
|
19
|
21
|
||||||||||||||
Total apartment units (1)
|
-
|
441
|
3,475
|
3,916
|
||||||||||||||
Operating information for the year ended 12/31/11 (at 100%):
|
||||||||||||||||||
Operating revenue
|
$
|
-
|
$
|
8,961
|
$
|
57,916
|
$
|
66,877
|
||||||||||
Operating expenses
|
249
|
3,868
|
19,115
|
23,232
|
||||||||||||||
Net operating (loss) income
|
(249
|
)
|
5,093
|
38,801
|
43,645
|
|||||||||||||
Depreciation
|
-
|
4,163
|
15,117
|
19,280
|
||||||||||||||
General and administrative/other
|
152
|
6
|
123
|
281
|
||||||||||||||
Operating (loss) income
|
(401
|
)
|
924
|
23,561
|
24,084
|
|||||||||||||
Interest and other income
|
6
|
6
|
10
|
22
|
||||||||||||||
Other expenses
|
(487
|
)
|
-
|
(39
|
)
|
(526
|
)
|
|||||||||||
Interest:
|
||||||||||||||||||
Expense incurred, net
|
(399
|
)
|
(3,229
|
)
|
(11,295
|
)
|
(14,923
|
)
|
||||||||||
Amortization of deferred financing costs
|
-
|
(382
|
)
|
(366
|
)
|
(748
|
)
|
|||||||||||
(Loss) income before income and other taxes and net gains
|
||||||||||||||||||
on sales of land parcels and discontinued operations
|
(1,281
|
)
|
(2,681
|
)
|
11,871
|
7,909
|
||||||||||||
Income and other tax (expense) benefit
|
(57
|
)
|
-
|
(6
|
)
|
(63
|
)
|
|||||||||||
Net gain on sales of land parcels
|
4,217
|
-
|
-
|
4,217
|
||||||||||||||
Net gain on sales of discontinued operations
|
169
|
-
|
13,259
|
13,428
|
||||||||||||||
Net income (loss)
|
$
|
3,048
|
$
|
(2,681
|
)
|
$
|
25,124
|
$
|
25,491
|
|||||||||
Debt - Secured (2):
|
||||||||||||||||||
EQR Ownership (3)
|
$
|
-
|
$
|
33,419
|
$
|
159,068
|
$
|
192,487
|
||||||||||
Noncontrolling Ownership
|
-
|
-
|
41,269
|
41,269
|
||||||||||||||
Total (at 100%)
|
$
|
-
|
$
|
33,419
|
$
|
200,337
|
$
|
233,756
|
(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 current economic ownership interest.
|
|
Note: See page 23 for the discussion of the Company's unconsolidated Nexus Sawgrass and Domain developments.
|
|
Equity Residential
|
||||||||||||||||||||||||||||||||
Development and Lease-Up Projects as of December 31, 2011
|
||||||||||||||||||||||||||||||||
(Amounts in thousands except for project and apartment unit amounts)
|
||||||||||||||||||||||||||||||||
Total Book
|
||||||||||||||||||||||||||||||||
No. of
|
Total
|
Total
|
Value Not
|
Estimated
|
Estimated
|
|||||||||||||||||||||||||||
Apartment
|
Capital
|
Book Value
|
Placed in
|
Total
|
Percentage
|
Percentage
|
Percentage
|
Completion
|
Stabilization
|
|||||||||||||||||||||||
Projects
|
Location
|
Units
|
Cost (1)
|
to Date
|
Service
|
Debt
|
Completed
|
Leased
|
Occupied
|
Date
|
Date
|
|||||||||||||||||||||
Consolidated
|
||||||||||||||||||||||||||||||||
Projects Under Development - Wholly Owned:
|
||||||||||||||||||||||||||||||||
Savoy III
|
Aurora, CO
|
168
|
$
|
23,856
|
$
|
15,785
|
$
|
15,785
|
$
|
-
|
80
|
%
|
1
|
%
|
-
|
Q2 2012
|
Q2 2013
|
|||||||||||||||
2201 Pershing Drive
|
Arlington, VA
|
188
|
64,242
|
30,927
|
30,927
|
-
|
43
|
%
|
-
|
-
|
Q3 2012
|
Q3 2013
|
||||||||||||||||||||
Chinatown Gateway
|
Los Angeles, CA
|
280
|
92,920
|
35,011
|
35,011
|
-
|
11
|
%
|
-
|
-
|
Q3 2013
|
Q2 2015
|
||||||||||||||||||||
Westgate Block 2
|
Pasadena, CA
|
252
|
125,293
|
35,086
|
35,086
|
-
|
1
|
%
|
-
|
-
|
Q1 2014
|
Q1 2015
|
||||||||||||||||||||
The Madison
|
Alexandria, VA
|
360
|
115,072
|
27,376
|
27,376
|
-
|
1
|
%
|
-
|
-
|
Q1 2014
|
Q2 2015
|
||||||||||||||||||||
Market Street Landing
|
Seattle, WA
|
287
|
90,024
|
16,005
|
16,005
|
-
|
1
|
%
|
-
|
-
|
Q1 2014
|
Q3 2015
|
||||||||||||||||||||
Projects Under Development - Wholly Owned
|
1,535
|
511,407
|
160,190
|
160,190
|
-
|
|||||||||||||||||||||||||||
Projects Under Development
|
1,535
|
511,407
|
160,190
|
160,190
|
-
|
|||||||||||||||||||||||||||
Completed Not Stabilized - Wholly Owned (2):
|
||||||||||||||||||||||||||||||||
88 Hillside (3)
|
Daly City, CA
|
95
|
39,520
|
39,520
|
-
|
-
|
52
|
%
|
47
|
%
|
Completed
|
Q2 2012
|
||||||||||||||||||||
Ten23 (formerly 500 West 23rd Street) (4)
|
New York, NY
|
111
|
55,555
|
53,002
|
-
|
-
|
18
|
%
|
-
|
Completed
|
Q4 2012
|
|||||||||||||||||||||
Projects Completed Not Stabilized - Wholly Owned
|
206
|
95,075
|
92,522
|
-
|
-
|
|||||||||||||||||||||||||||
Projects Completed Not Stabilized
|
206
|
95,075
|
92,522
|
-
|
-
|
|||||||||||||||||||||||||||
Completed and Stabilized During the Quarter - Wholly Owned:
|
||||||||||||||||||||||||||||||||
425 Mass (3)
|
Washington, D.C.
|
559
|
166,750
|
166,750
|
-
|
-
|
96
|
%
|
93
|
%
|
Completed
|
Stabilized
|
||||||||||||||||||||
Vantage Pointe (3)
|
San Diego, CA
|
679
|
200,000
|
200,000
|
-
|
-
|
93
|
%
|
91
|
%
|
Completed
|
Stabilized
|
||||||||||||||||||||
Projects Completed and Stabilized During the Quarter - Wholly Owned
|
1,238
|
366,750
|
366,750
|
-
|
-
|
|||||||||||||||||||||||||||
Projects Completed and Stabilized During the Quarter
|
1,238
|
366,750
|
366,750
|
-
|
-
|
|||||||||||||||||||||||||||
Total Consolidated Projects
|
2,979
|
$
|
973,232
|
$
|
619,462
|
$
|
160,190
|
$
|
-
|
|||||||||||||||||||||||
Land Held for Development (5)
|
N/A
|
N/A
|
$
|
325,200
|
$
|
325,200
|
$
|
-
|
||||||||||||||||||||||||
Unconsolidated
|
||||||||||||||||||||||||||||||||
Projects Under Development - Unconsolidated:
|
||||||||||||||||||||||||||||||||
Domain (6)
|
San Jose, CA
|
444
|
$
|
154,570
|
$
|
38,148
|
$
|
38,148
|
$
|
-
|
2
|
%
|
-
|
-
|
Q1 2013
|
Q1 2015
|
||||||||||||||||
Nexus Sawgrass (formerly Sunrise Village) (6)
|
Sunrise, FL
|
501
|
78,212
|
22,940
|
22,940
|
-
|
10
|
%
|
-
|
-
|
Q3 2013
|
Q3 2014
|
||||||||||||||||||||
Projects Under Development - Unconsolidated
|
945
|
232,782
|
61,088
|
61,088
|
-
|
|||||||||||||||||||||||||||
Projects Under Development
|
945
|
232,782
|
61,088
|
61,088
|
-
|
|||||||||||||||||||||||||||
Total Unconsolidated Projects
|
945
|
$
|
232,782
|
$
|
61,088
|
$
|
61,088
|
$
|
-
|
|||||||||||||||||||||||
Total Capital
|
Q4 2011
|
|||||||||||||||||||||||||||||||
NOI CONTRIBUTION FROM CONSOLIDATED DEVELOPMENT PROJECTS
|
Cost (1)
|
NOI
|
||||||||||||||||||||||||||||||
Projects Under Development
|
$
|
511,407
|
$
|
(2
|
)
|
|||||||||||||||||||||||||||
Completed Not Stabilized
|
95,075
|
(325
|
)
|
|||||||||||||||||||||||||||||
Completed and Stabilized During the Quarter
|
366,750
|
6,287
|
||||||||||||||||||||||||||||||
Total Consolidated Development NOI Contribution
|
$
|
973,232
|
$
|
5,960
|
(1)
|
Total capital cost represents estimated cost for projects under development and/or developed 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)
|
Properties included here are substantially complete. However, they may still require additional exterior and interior work for all apartment units to be available for leasing.
|
|
(3)
|
The Company acquired these completed development projects prior to stabilization and has continued or is finishing lease-up activities.
|
|
(4)
|
Ten23 - The land under this development is subject to a long term ground lease.
|
|
(5)
|
Includes $58.3 million funded by Toll Brothers (NYSE: TOL) for their allocated share of a vacant land parcel at 400 Park Avenue South in New York City. See page 11 for further discussion.
|
|
(6)
|
These development projects 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. The Company's remaining funding obligations are currently estimated at $5.4 million.
|
|
Equity Residential
|
||||||||||||||||||||||||||||||||||||||||||||||||
Repairs and Maintenance Expenses and Capital Expenditures to Real Estate
|
||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in thousands except for apartment unit and per apartment unit amounts)
|
||||||||||||||||||||||||||||||||||||||||||||||||
Repairs and Maintenance Expenses
|
Capital Expenditures to Real Estate
|
Total Expenditures
|
||||||||||||||||||||||||||||||||||||||||||||||
Total
|
Avg. Per
|
Avg. Per
|
Avg. Per
|
Avg. Per
|
Building
|
Avg. Per
|
Avg. Per
|
Avg. Per
|
||||||||||||||||||||||||||||||||||||||||
Apartment
|
Expense |
Apartment
|
Payroll |
Apartment
|
Apartment
|
Replacements
|
Apartment
|
Improvements
|
Apartment
|
Apartment
|
Grand
|
Apartment
|
||||||||||||||||||||||||||||||||||||
Units (1)
|
(2)
|
Unit
|
(3)
|
Unit
|
Total
|
Unit
|
(4)
|
Unit
|
(5)
|
Unit
|
Total
|
Unit
|
Total
|
Unit
|
||||||||||||||||||||||||||||||||||
Same Store Properties (6)
|
101,312
|
$
|
89,549
|
$
|
884
|
$
|
73,921
|
$
|
730
|
$
|
163,470
|
$
|
1,614
|
$
|
70,937
|
$
|
700
|
$
|
49,674
|
$
|
490
|
$
|
120,611
|
$
|
1,190
|
(9)
|
$
|
284,081
|
$
|
2,804
|
||||||||||||||||||
Non-Same Store Properties (7)
|
15,761
|
12,080
|
1,058
|
9,046
|
793
|
21,126
|
1,851
|
7,505
|
658
|
13,827
|
1,211
|
21,332
|
1,869
|
42,458
|
3,720
|
|||||||||||||||||||||||||||||||||
Other (8)
|
-
|
4,079
|
6,978
|
11,057
|
2,147
|
362
|
2,509
|
13,566
|
||||||||||||||||||||||||||||||||||||||||
Total
|
117,073
|
$
|
105,708
|
$
|
89,945
|
$
|
195,653
|
$
|
80,589
|
$
|
63,863
|
$
|
144,452
|
$
|
340,105
|
(1)
|
Total Apartment Units - Excludes 4,901 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)
|
Repairs and Maintenance Expenses - 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.
|
|
(3)
|
Maintenance Payroll - Includes payroll and related expenses for maintenance staff.
|
|
(4)
|
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 $38.1 million spent in 2011 on apartment unit renovations/rehabs (primarily kitchens and baths) on 5,416 apartment units (equating to about $7,000 per apartment unit rehabbed) designed to reposition these assets for higher rental levels in their respective markets. In 2012, the Company expects to spend approximately $39.2 million rehabbing 4,700 apartment units (equating to about $8,300 per apartment unit rehabbed).
|
|
(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)
|
Same Store Properties - Primarily includes all properties acquired or completed and stabilized prior to January 1, 2010, less properties subsequently sold.
|
|
(7)
|
Non-Same Store Properties - Primarily includes all properties acquired during 2010 and 2011, plus any properties in lease-up and not stabilized as of January 1, 2010. Per apartment unit amounts are based on a weighted average of 11,414 apartment units.
|
|
(8)
|
Other - Primarily includes expenditures for properties sold during the period.
|
|
(9)
|
For 2012, the Company estimates that it will spend approximately $1,225 per apartment unit of capital expenditures for its same store properties inclusive of apartment unit renovation/rehab costs, or $850 per apartment unit excluding apartment unit renovation/rehab costs.
|
|
Equity Residential
|
|||||||||||||||||
Discontinued Operations
|
|||||||||||||||||
(Amounts in thousands)
|
|||||||||||||||||
Year Ended
|
Quarter Ended
|
||||||||||||||||
December 31,
|
December 31,
|
||||||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||||||
REVENUES
|
|||||||||||||||||
Rental income
|
$
|
96,156
|
$
|
289,921
|
$
|
2,003
|
$
|
70,247
|
|||||||||
Total revenues
|
96,156
|
289,921
|
2,003
|
70,247
|
|||||||||||||
EXPENSES (1)
|
|||||||||||||||||
Property and maintenance
|
47,972
|
115,215
|
285
|
28,116
|
|||||||||||||
Real estate taxes and insurance
|
6,152
|
23,306
|
319
|
5,536
|
|||||||||||||
Depreciation
|
16,653
|
60,257
|
384
|
14,407
|
|||||||||||||
General and administrative
|
53
|
42
|
4
|
10
|
|||||||||||||
Total expenses
|
70,830
|
198,820
|
992
|
48,069
|
|||||||||||||
Discontinued operating income
|
25,326
|
91,101
|
1,011
|
22,178
|
|||||||||||||
Interest and other income
|
184
|
800
|
44
|
14
|
|||||||||||||
Interest (2):
|
|||||||||||||||||
Expense incurred, net
|
(203
|
)
|
(10,070
|
)
|
(31
|
)
|
(3,929
|
)
|
|||||||||
Amortization of deferred financing costs
|
(840
|
)
|
(292
|
)
|
(190
|
)
|
(33
|
)
|
|||||||||
Income and other tax (expense) benefit
|
243
|
(86
|
)
|
212
|
(20
|
)
|
|||||||||||
Discontinued operations
|
24,710
|
81,453
|
1,046
|
18,210
|
|||||||||||||
Net gain on sales of discontinued operations
|
826,489
|
297,956
|
67,389
|
228,418
|
|||||||||||||
Discontinued operations, net
|
$
|
851,199
|
$
|
379,409
|
$
|
68,435
|
$
|
246,628
|
(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
|
||||||||||||||||||||||||
Normalized FFO Guidance Reconciliations and Non-Comparable Items
|
||||||||||||||||||||||||
(Amounts in thousands except per share data)
|
||||||||||||||||||||||||
(All per share data is diluted)
|
||||||||||||||||||||||||
Normalized FFO Guidance Reconciliations
|
||||||||||||||||||||||||
Normalized
|
||||||||||||||||||||||||
FFO Reconciliations
|
||||||||||||||||||||||||
Guidance Q4 2011
|
||||||||||||||||||||||||
to Actual Q4 2011
|
||||||||||||||||||||||||
Amounts
|
Per Share
|
|||||||||||||||||||||||
Guidance Q4 2011 Normalized FFO - Diluted (2) (3)
|
$
|
204,840
|
$
|
0.655
|
||||||||||||||||||||
Property NOI
|
1,613
|
0.005
|
||||||||||||||||||||||
Interest expense
|
(1,653
|
)
|
(0.005
|
)
|
||||||||||||||||||||
Other
|
(168
|
)
|
(0.001
|
)
|
||||||||||||||||||||
Actual Q4 2011 Normalized FFO - Diluted (2) (3)
|
$
|
204,632
|
$
|
0.654
|
||||||||||||||||||||
Non-Comparable Items – Adjustments from FFO to Normalized FFO (2) (3)
|
||||||||||||||||||||||||
Year Ended December 31,
|
Quarter Ended December 31,
|
|||||||||||||||||||||||
2011
|
2010
|
Variance
|
2011
|
2010
|
Variance
|
|||||||||||||||||||
Impairment
|
$
|
-
|
$
|
45,380
|
$
|
(45,380
|
)
|
$
|
-
|
$
|
45,380
|
$
|
(45,380
|
)
|
||||||||||
Asset impairment and valuation allowances
|
-
|
45,380
|
(45,380
|
)
|
-
|
45,380
|
(45,380
|
)
|
||||||||||||||||
Property acquisition costs (other expenses) (A)
|
9,482
|
6,656
|
2,826
|
4,216
|
655
|
3,561
|
||||||||||||||||||
Write-off of pursuit costs (other expenses)
|
5,075
|
5,272
|
(197
|
)
|
1,023
|
1,760
|
(737
|
)
|
||||||||||||||||
Property acquisition costs and write-off of pursuit costs (other expenses)
|
14,557
|
11,928
|
2,629
|
5,239
|
2,415
|
2,824
|
||||||||||||||||||
Prepayment premiums/penalties (interest expense)
|
-
|
2,456
|
(2,456
|
)
|
-
|
2,298
|
(2,298
|
)
|
||||||||||||||||
Write-off of unamortized deferred financing costs (interest expense) (B)
|
7,227
|
1,048
|
6,179
|
2,880
|
44
|
2,836
|
||||||||||||||||||
Write-off of unamortized (premiums)/discounts/OCI (interest expense)
|
(89
|
)
|
(2,689
|
)
|
2,600
|
-
|
(2,365
|
)
|
2,365
|
|||||||||||||||
Non-cash convertible debt discount (interest expense)
|
4,992
|
7,779
|
(2,787
|
)
|
-
|
1,944
|
(1,944
|
)
|
||||||||||||||||
Loss due to ineffectiveness of forward starting swaps (interest expense)
|
170
|
-
|
170
|
170
|
-
|
170
|
||||||||||||||||||
Debt extinguishment (gains) losses, including prepayment penalties, preferred share redemptions and non-cash convertible debt discounts
|
12,300
|
8,594
|
3,706
|
3,050
|
1,921
|
1,129
|
||||||||||||||||||
Net (gain) loss on sales of land parcels
|
(4,217
|
)
|
1,395
|
(5,612
|
)
|
-
|
234
|
(234
|
)
|
|||||||||||||||
Net incremental (gain) loss on sales of condominium units
|
(1,993
|
)
|
(1,506
|
)
|
(487
|
)
|
57
|
(887
|
)
|
944
|
||||||||||||||
Income and other tax expense (benefit) - Condo sales
|
(365
|
)
|
31
|
(396
|
)
|
(299
|
)
|
(4
|
)
|
(295
|
)
|
|||||||||||||
(Gain) on sale of Equity Corporate Housing (ECH), net of severance
|
(401
|
)
|
-
|
(401
|
)
|
(180
|
)
|
-
|
(180
|
)
|
||||||||||||||
(Gains) losses on sales of non-operating assets, net of income and other tax expense (benefit)
|
(6,976
|
)
|
(80
|
)
|
(6,896
|
)
|
(422
|
)
|
(657
|
)
|
235
|
|||||||||||||
Insurance/litigation settlement expense (property and maintenance)
|
-
|
1,680
|
(1,680
|
)
|
-
|
1,680
|
(1,680
|
)
|
||||||||||||||||
Insurance/litigation settlement proceeds (interest and other income)
|
(800
|
)
|
(5,192
|
)
|
4,392
|
(800
|
)
|
-
|
(800
|
)
|
||||||||||||||
Prospect Towers garage insurance proceeds (real estate taxes and insurance)
|
(6,103
|
)
|
(2,674
|
)
|
(3,429
|
)
|
(3,378
|
)
|
(2,674
|
)
|
(704
|
)
|
||||||||||||
Termination of royalty participation in LRO (interest and other income)
|
(4,537
|
)
|
-
|
(4,537
|
)
|
-
|
-
|
-
|
||||||||||||||||
Final profit participation in third-party management company (interest and other income)
|
(200
|
)
|
-
|
(200
|
)
|
(200
|
)
|
-
|
(200
|
)
|
||||||||||||||
Forfeited deposits (interest and other income)
|
(729
|
)
|
-
|
(729
|
)
|
(229
|
)
|
-
|
(229
|
)
|
||||||||||||||
Other miscellaneous non-comparable items
|
(12,369
|
)
|
(6,186
|
)
|
(6,183
|
)
|
(4,607
|
)
|
(994
|
)
|
(3,613
|
)
|
||||||||||||
Non-comparable items – Adjustments from FFO to Normalized FFO (2) (3)
|
$
|
7,512
|
$
|
59,636
|
$
|
(52,124
|
)
|
$
|
3,260
|
$
|
48,065
|
$
|
(44,805
|
)
|
(A)
|
For the year ended December 31, 2011, includes $1.8 million of transaction costs related to the potential Archstone transaction.
|
|
(B)
|
For the year ended December 31, 2011, includes $2.6 million of bridge loan costs related to the potential Archstone transaction.
|
|
Note: See page 28 for the definitions, the footnotes referenced above and the reconciliations of EPS to FFO and Normalized FFO.
|
Equity Residential
|
||||||
Normalized FFO Guidance and Assumptions
|
||||||
The guidance/projections provided below are based on current expectations and are forward-looking. All guidance is given on a Normalized FFO basis.
|
||||||
2012 Normalized FFO Guidance (per share diluted)
|
||||||
Q1 2012
|
2012
|
|||||
Expected Normalized FFO (2) (3)
|
$0.58 to $0.62
|
$2.68 to $2.78
|
||||
2012 Same Store Assumptions
|
||||||
Physical occupancy
|
95.2%
|
|||||
Revenue change
|
5.0% to 6.0%
|
|||||
Expense change
|
1.5% to 2.5%
|
|||||
NOI change
|
6.5% to 8.5%
|
|||||
(Note: 30 basis point change in NOI percentage = $0.01 per share change in EPS/FFO/Normalized FFO)
|
||||||
2012 Transaction Assumptions
|
||||||
Consolidated rental acquisitions
|
$1.25 billion
|
|||||
Consolidated rental dispositions
|
$1.25 billion
|
|||||
Capitalization rate spread
|
125 basis points
|
|||||
2012 Debt Assumptions (see Note)
|
||||||
Weighted average debt outstanding
|
$9.4 billion to $9.6 billion
|
|||||
Weighted average interest rate (reduced for capitalized interest)
|
4.88%
|
|||||
Interest expense
|
$458.0 million to $468.0 million
|
|||||
(Note: Debt guidance assumes the delayed draw term loan is drawn in July 2012 and assumes no other debt offerings during 2012)
|
||||||
2012 Other Guidance Assumptions (see Note)
|
||||||
General and administrative expense
|
$45.0 million to $46.0 million
|
|||||
Interest and other income
|
$0.5 million to $1.0 million
|
|||||
Income and other tax expense
|
$0.5 million to $1.5 million
|
|||||
Equity ATM share offerings
|
No additional amounts budgeted
|
|||||
Weighted average Common Shares and Units - Diluted
|
316.6 million
|
Note: All guidance is given on a Normalized FFO basis. Therefore, certain items excluded from Normalized FFO, such as debt extinguishment costs/prepayment penalties and the write-off of pursuit and property acquisition costs, are not included in the estimates provided on this page. See page 28 for the definitions, the footnotes referenced above and the reconciliations of EPS to FFO and Normalized FFO.
|
Equity Residential
|
||||||||||||||
Additional Reconciliations, Definitions and Footnotes
|
||||||||||||||
(Amounts in thousands except per share data)
|
||||||||||||||
(All per share data is diluted)
|
||||||||||||||
The guidance/projections provided below are based on current expectations and are forward-looking.
|
||||||||||||||
Reconciliations of EPS to FFO and Normalized FFO for Pages 8, 26 and 27
|
||||||||||||||
Expected
|
Expected
|
||||||||||
Expected Q4 2011
|
Q1 2012
|
2012
|
|||||||||
Amounts
|
Per Share
|
Per Share
|
Per Share
|
||||||||
Expected Earnings - Diluted (5)
|
$46,599 | $0.149 |
$0.55 to $0.59
|
$2.34 to $2.44
|
|||||||
Add: Expected depreciation expense
|
170,437
|
0.545
|
0.57
|
2.51
|
|||||||
Less: Expected net gain on sales (5)
|
(14,476
|
)
|
(0.046
|
)
|
(0.55) | (2.20) | |||||
Expected FFO - Diluted (1) (3)
|
202,560
|
0.648
|
0.57 to 0.61
|
2.65 to 2.75
|
|||||||
Asset impairment and valuation allowances
|
-
|
-
|
-
|
-
|
|||||||
Property acquisition costs and write-off of pursuit costs (other expenses)
|
5,034
|
0.016
|
0.01
|
0.04
|
|||||||
Debt extinguishment (gains) losses, including prepayment penalties, preferred
|
|||||||||||
share redemptions and non-cash convertible debt discounts
|
67
|
-
|
-
|
-
|
|||||||
(Gains) losses on sales of non-operating assets, net of income and other
|
|||||||||||
tax expense (benefit)
|
(346
|
)
|
(0.001
|
)
|
-
|
(0.01) | |||||
Other miscellaneous non-comparable items
|
(2,475
|
)
|
(0.008
|
)
|
-
|
-
|
|||||
Expected Normalized FFO - Diluted (2) (3)
|
$204,840 | $0.655 |
$0.58 to $0.62
|
$2.68 to $2.78
|
Definitions and Footnotes for Pages 8, 26 and 27
|
||
(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 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 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 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 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, Normalized FFO and Normalized FFO available to Common Shares and 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, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and 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, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and 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 and Normalized FFO available to Common Shares and Units are 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 "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.
|
|
(5)
|
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.
|
|
Same Store NOI Reconciliation for Page 12
|
||||||||||||||||||
The following tables present reconciliations of operating income per the consolidated statements of operations to NOI for 2011 and Fourth Quarter 2011 Same Store Properties:
|
||||||||||||||||||
Year Ended December 31,
|
Quarter Ended December 31,
|
|||||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||||
Operating income
|
$
|
573,332
|
$
|
376,077
|
$
|
162,148
|
$
|
76,503
|
||||||||||
Adjustments:
|
||||||||||||||||||
Non-same store operating results
|
(164,438
|
)
|
(53,734
|
)
|
(35,947
|
)
|
(5,285
|
)
|
||||||||||
Fee and asset management revenue
|
(9,026
|
)
|
(9,476
|
)
|
(2,344
|
)
|
(1,880
|
)
|
||||||||||
Fee and asset management expense
|
4,279
|
4,998
|
1,072
|
756
|
||||||||||||||
Depreciation
|
646,963
|
613,146
|
166,849
|
157,301
|
||||||||||||||
General and administrative
|
43,606
|
39,881
|
11,144
|
8,852
|
||||||||||||||
Impairment
|
-
|
45,380
|
-
|
45,380
|
||||||||||||||
Same store NOI
|
$
|
1,094,716
|
$
|
1,016,272
|
$
|
302,922
|
$
|
281,627
|
Equity Residential
|
||||||||
Consolidated Statements of Operations
|
||||||||
(Amounts in thousands except per share data)
|
||||||||
(Unaudited)
|
||||||||
Year Ended December 31,
|
||||||||
2011
|
2010
|
|||||||
REVENUES
|
||||||||
Rental income
|
$ | 1,980,437 | $ | 1,763,792 | ||||
Fee and asset management
|
9,026 | 9,476 | ||||||
Total revenues
|
1,989,463 | 1,773,268 | ||||||
EXPENSES
|
||||||||
Property and maintenance
|
416,723 | 402,078 | ||||||
Real estate taxes and insurance
|
222,427 | 211,621 | ||||||
Property management
|
82,133 | 80,087 | ||||||
Fee and asset management
|
4,279 | 4,998 | ||||||
Depreciation
|
646,963 | 613,146 | ||||||
General and administrative
|
43,606 | 39,881 | ||||||
Impairment
|
- | 45,380 | ||||||
Total expenses
|
1,416,131 | 1,397,191 | ||||||
Operating income
|
573,332 | 376,077 | ||||||
Interest and other income
|
7,977 | 5,166 | ||||||
Other expenses
|
(14,557 | ) | (11,928 | ) | ||||
Interest:
|
||||||||
Expense incurred, net
|
(469,237 | ) | (468,306 | ) | ||||
Amortization of deferred financing costs
|
(17,006 | ) | (10,114 | ) | ||||
Income (loss) before income and other taxes, (loss) from investments
|
||||||||
in unconsolidated entities, net gain (loss) on sales of unconsolidated
|
||||||||
entities and land parcels and discontinued operations
|
80,509 | (109,105 | ) | |||||
Income and other tax (expense) benefit
|
(728 | ) | (292 | ) | ||||
(Loss) from investments in unconsolidated entities
|
- | (735 | ) | |||||
Net gain on sales of unconsolidated entities
|
- | 28,101 | ||||||
Net gain (loss) on sales of land parcels
|
4,217 | (1,395 | ) | |||||
Income (loss) from continuing operations
|
83,998 | (83,426 | ) | |||||
Discontinued operations, net
|
851,199 | 379,409 | ||||||
Net income
|
935,197 | 295,983 | ||||||
Net (income) loss attributable to Noncontrolling Interests:
|
||||||||
Operating Partnership
|
(40,780 | ) | (13,099 | ) | ||||
Partially Owned Properties
|
(832 | ) | 726 | |||||
Net income attributable to controlling interests
|
893,585 | 283,610 | ||||||
Preferred distributions
|
(13,865 | ) | (14,368 | ) | ||||
Net income available to Common Shares
|
$ | 879,720 | $ | 269,242 | ||||
Earnings per share – basic:
|
||||||||
Income (loss) from continuing operations available to Common Shares
|
$ | 0.23 | $ | (0.33 | ) | |||
Net income available to Common Shares
|
$ | 2.98 | $ | 0.95 | ||||
Weighted average Common Shares outstanding
|
294,856 | 282,888 | ||||||
Earnings per share – diluted:
|
||||||||
Income (loss) from continuing operations available to Common Shares
|
$ | 0.22 | $ | (0.33 | ) | |||
Net income available to Common Shares
|
$ | 2.95 | $ | 0.95 | ||||
Weighted average Common Shares outstanding
|
312,065 | 282,888 | ||||||
Distributions declared per Common Share outstanding
|
$ | 1.58 | $ | 1.47 | ||||
Consolidated Statements of Funds From Operations and Normalized Funds From Operations
|
||||||||
(Amounts in thousands except per share data)
|
||||||||
(Unaudited)
|
||||||||
Year Ended December 31,
|
||||||||
2011
|
2010
|
|||||||
Net income
|
$ | 935,197 | $ | 295,983 | ||||
Adjustments:
|
||||||||
Net (income) loss attributable to Noncontrolling Interests –
|
||||||||
Partially Owned Properties
|
(832 | ) | 726 | |||||
Depreciation
|
646,963 | 613,146 | ||||||
Depreciation – Non-real estate additions
|
(5,519 | ) | (6,566 | ) | ||||
Depreciation – Partially Owned and Unconsolidated Properties
|
(3,062 | ) | (1,619 | ) | ||||
Net (gain) on sales of unconsolidated entities
|
- | (28,101 | ) | |||||
Discontinued operations:
|
||||||||
Depreciation
|
16,565 | 60,035 | ||||||
Net (gain) on sales of discontinued operations
|
(826,489 | ) | (297,956 | ) | ||||
Net incremental gain (loss) on sales of condominium units
|
1,993 | 1,506 | ||||||
Gain on sale of Equity Corporate Housing (ECH)
|
1,202 | - | ||||||
FFO (1) (3)
|
766,018 | 637,154 | ||||||
Adjustments:
|
||||||||
Asset impairment and valuation allowances
|
- | 45,380 | ||||||
Property acquisition costs and write-off of pursuit costs (other expenses)
|
14,557 | 11,928 | ||||||
Debt extinguishment (gains) losses, including prepayment penalties, preferred
|
||||||||
share redemptions and non-cash convertible debt discounts
|
12,300 | 8,594 | ||||||
(Gains) losses on sales of non-operating assets, net of income and other
|
||||||||
tax expense (benefit)
|
(6,976 | ) | (80 | ) | ||||
Other miscellaneous non-comparable items
|
(12,369 | ) | (6,186 | ) | ||||
Normalized FFO (2) (3)
|
$ | 773,530 | $ | 696,790 | ||||
FFO (1) (3)
|
$ | 766,018 | $ | 637,154 | ||||
Preferred distributions
|
(13,865 | ) | (14,368 | ) | ||||
FFO available to Common Shares and Units - basic (1) (3) (4)
|
$ | 752,153 | $ | 622,786 | ||||
Normalized FFO (2) (3)
|
$ | 773,530 | $ | 696,790 | ||||
Preferred distributions
|
(13,865 | ) | (14,368 | ) | ||||
Normalized FFO available to Common Shares and Units - basic (2) (3) (4)
|
$ | 759,665 | $ | 682,422 | ||||
(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 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 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 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 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, Normalized FFO and Normalized FFO available to Commosn Shares and 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, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and 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, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and 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 and Normalized FFO available to Common Shares and Units are 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 "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. |
Equity Residential
|
||||||||
Consolidated Balance Sheets
|
||||||||
(Amounts in thousands except for share amounts)
|
||||||||
(Unaudited)
|
||||||||
December 31,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
ASSETS
|
||||||||
Investment in real estate
|
||||||||
Land
|
$ | 4,367,816 | $ | 4,110,275 | ||||
Depreciable property
|
15,554,740 | 15,226,512 | ||||||
Projects under development
|
160,190 | 130,337 | ||||||
Land held for development
|
325,200 | 235,247 | ||||||
Investment in real estate
|
20,407,946 | 19,702,371 | ||||||
Accumulated depreciation
|
(4,539,583 | ) | (4,337,357 | ) | ||||
Investment in real estate, net
|
15,868,363 | 15,365,014 | ||||||
Cash and cash equivalents
|
383,921 | 431,408 | ||||||
Investments in unconsolidated entities
|
12,327 | 3,167 | ||||||
Deposits – restricted
|
152,237 | 180,987 | ||||||
Escrow deposits – mortgage
|
10,692 | 12,593 | ||||||
Deferred financing costs, net
|
44,608 | 42,033 | ||||||
Other assets
|
187,155 | 148,992 | ||||||
Total assets
|
$ | 16,659,303 | $ | 16,184,194 | ||||
LIABILITIES AND EQUITY
|
||||||||
Liabilities:
|
||||||||
Mortgage notes payable
|
$ | 4,111,487 | $ | 4,762,896 | ||||
Notes, net
|
5,609,574 | 5,185,180 | ||||||
Lines of credit
|
- | - | ||||||
Accounts payable and accrued expenses
|
35,206 | 39,452 | ||||||
Accrued interest payable
|
88,121 | 98,631 | ||||||
Other liabilities
|
291,289 | 304,202 | ||||||
Security deposits
|
65,286 | 60,812 | ||||||
Distributions payable
|
179,079 | 140,905 | ||||||
Total liabilities
|
10,380,042 | 10,592,078 | ||||||
Commitments and contingencies
|
||||||||
Redeemable Noncontrolling Interests – Operating Partnership
|
416,404 | 383,540 | ||||||
Equity:
|
||||||||
Shareholders' equity:
|
||||||||
Preferred Shares of beneficial interest, $0.01 par value;
|
||||||||
100,000,000 shares authorized; 1,600,000 shares issued
|
||||||||
and outstanding as of December 31, 2011 and December 31, 2010
|
200,000 | 200,000 | ||||||
Common Shares of beneficial interest, $0.01 par value;
|
||||||||
1,000,000,000 shares authorized; 297,508,185 shares issued
|
||||||||
and outstanding as of December 31, 2011 and 290,197,242
|
||||||||
shares issued and outstanding as of December 31, 2010
|
2,975 | 2,902 | ||||||
Paid in capital
|
5,047,186 | 4,741,521 | ||||||
Retained earnings
|
615,572 | 203,581 | ||||||
Accumulated other comprehensive (loss)
|
(196,718 | ) | (57,818 | ) | ||||
Total shareholders' equity
|
5,669,015 | 5,090,186 | ||||||
Noncontrolling Interests:
|
||||||||
Operating Partnership
|
119,536 | 110,399 | ||||||
Partially Owned Properties
|
74,306 | 7,991 | ||||||
Total Noncontrolling Interests
|
193,842 | 118,390 | ||||||
Total equity
|
5,862,857 | 5,208,576 | ||||||
Total liabilities and equity
|
$ | 16,659,303 | $ | 16,184,194 | ||||
Equity Residential
|
Portfolio Summary
|
As of December 31, 2011
|
% of Total
|
% of
|
Average
|
|||||||||||||||||||||
Apartment
|
Apartment
|
Stabilized
|
Rental
|
||||||||||||||||||||
Markets
|
Properties
|
Units
|
Units
|
NOI
|
Rate (1)
|
||||||||||||||||||
1 |
New York Metro Area
|
30 | 8,514 | 7.0 | % | 13.3 | % | $ | 3,035 | ||||||||||||||
2 |
DC Northern Virginia
|
26 | 9,381 | 7.7 | % | 11.4 | % | 2,056 | |||||||||||||||
3 |
Los Angeles
|
46 | 9,613 | 7.9 | % | 9.5 | % | 1,787 | |||||||||||||||
4 |
South Florida
|
39 | 12,989 | 10.6 | % | 9.5 | % | 1,400 | |||||||||||||||
5 |
Boston
|
30 | 6,183 | 5.0 | % | 8.2 | % | 2,322 | |||||||||||||||
6 |
San Francisco Bay Area
|
37 | 8,628 | 7.1 | % | 7.3 | % | 1,688 | |||||||||||||||
7 |
Seattle/Tacoma
|
43 | 9,582 | 7.8 | % | 7.0 | % | 1,403 | |||||||||||||||
8 |
San Diego
|
14 | 4,963 | 4.1 | % | 5.1 | % | 1,825 | |||||||||||||||
9 |
Denver
|
23 | 7,970 | 6.5 | % | 5.0 | % | 1,134 | |||||||||||||||
10 |
Phoenix
|
31 | 8,880 | 7.3 | % | 4.2 | % | 930 | |||||||||||||||
11 |
Suburban Maryland
|
16 | 4,584 | 3.8 | % | 3.9 | % | 1,489 | |||||||||||||||
12 |
Orlando
|
24 | 7,265 | 6.0 | % | 3.8 | % | 1,009 | |||||||||||||||
13 |
Orange County, CA
|
11 | 3,490 | 2.9 | % | 3.2 | % | 1,578 | |||||||||||||||
14 |
Atlanta
|
16 | 4,800 | 3.9 | % | 2.5 | % | 1,040 | |||||||||||||||
15 |
Inland Empire, CA
|
10 | 3,081 | 2.5 | % | 2.4 | % | 1,434 | |||||||||||||||
16 |
All Other Markets (2)
|
29 | 7,150 | 5.9 | % | 3.7 | % | 1,077 | |||||||||||||||
Total
|
425 | 117,073 | 96.0 | % | 100.0 | % | 1,589 | ||||||||||||||||
Military Housing
|
2 | 4,901 | 4.0 | % | - | - | |||||||||||||||||
Grand Total
|
427 | 121,974 | 100.0 | % | 100.0 | % | $ | 1,589 | |||||||||||||||
(1) Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment units for the month of December 2011.
|
|||||||||||||||||||||||
(2) All Other Markets - Each individual market is less than 2.0% of stabilized NOI.
|
|||||||||||||||||||||||
Note:
|
Projects under development are not included in the Portfolio Summary until construction has been completed, at which time they are included at their projected stabilized NOI.
|
||||||||||||||||||||||
Equity Residential
|
Portfolio as of December 31, 2011
|
||||||||
Apartment
|
||||||||
Properties |
Units
|
|||||||
Wholly Owned Properties
|
404 | 113,157 | ||||||
Partially Owned Properties - Consolidated
|
21 | 3,916 | ||||||
Military Housing
|
2 | 4,901 | ||||||
427 | 121,974 |
Portfolio Rollforward 2011
|
||||||||||||
($ in thousands)
|
Apartment
|
Purchase/
|
|||||||||||||||
Properties
|
Units
|
(Sale) Price
|
Cap Rate
|
|||||||||||||
12/31/2010 | 451 | 129,604 | ||||||||||||||
Acquisitions:
|
||||||||||||||||
Rental Properties:
|
||||||||||||||||
Consolidated - Stabilized
|
20 | 6,103 | $ | 1,343,528 | 5.2 | % | ||||||||||
Consolidated - Not Stabilized (2)
|
1 | 95 | $ | 39,520 | ||||||||||||
Land Parcels (seven) (1)(3)
|
- | - | $ | 202,313 | ||||||||||||
Other (4)
|
- | - | $ | 11,750 | ||||||||||||
Dispositions:
|
||||||||||||||||
Rental Properties:
|
||||||||||||||||
Consolidated
|
(47 | ) | (14,345 | ) | $ | (1,482,239 | ) | 6.5 | % | |||||||
Land Parcel (one) (5)
|
- | - | $ | (22,786 | ) | |||||||||||
Completed Developments
|
2 | 361 | ||||||||||||||
Configuration Changes
|
- | 156 | ||||||||||||||
12/31/2011 | 427 | 121,974 |
(1)
|
Includes a vacant land parcel at 400 Park Avenue South in New York City acquired jointly by the Company and Toll Brothers (NYSE: TOL). The Company's and Toll Brothers' allocated portions of the purchase price were approximately $76.1 million and $57.9 million, respectively. Until the core and shell of the building is complete, the building and land will be owned jointly and are required to be consolidated on the Company's balance sheet. Thereafter, the Company will solely own and control the rental portion of the building (floors 2-22) and Toll Brothers will solely own and control the for sale portion of the building (floors 23-40). Once the core and shell are complete, the Toll Brothers' portion of the property will be deconsolidated from the Company's balance sheet.
|
|||||||||||
(2)
|
The Company acquired one unoccupied property in the third quarter of 2011 (88 Hillside) that is expected to stabilize at a 6.3% yield on cost.
|
|||||||||||
(3)
|
Includes entry into a long-term ground lease for a land parcel at 170 Amsterdam Avenue in New York City.
|
|||||||||||
(4)
|
Represents the acquisition of a 97,000 square foot commercial building adjacent to our Harbor Steps apartment property in downtown Seattle for potential redevelopment.
|
|||||||||||
(5)
|
Represents the sale of a land parcel, on which the Company no longer planned to develop, in suburban Washington, D.C.
|
|||||||||||
Equity Residential
|
2011 vs. 2010
|
Same Store Results/Statistics
|
$ in thousands (except for Average Rental Rate) - 101,312 Same Store Apartment Units
|
Results
|
Statistics
|
|||||||||||||||||||||||
Average
|
||||||||||||||||||||||||
Rental
|
||||||||||||||||||||||||
Description
|
Revenues
|
Expenses
|
NOI (1)
|
Rate (2)
|
Occupancy
|
Turnover
|
||||||||||||||||||
2011
|
$ | 1,712,428 | $ | 617,712 | $ | 1,094,716 | $ | 1,481 | 95.2 | % | 44.4 | % | ||||||||||||
2010
|
$ | 1,630,482 | $ | 614,210 | $ | 1,016,272 | $ | 1,417 | 94.8 | % | 44.1 | % | ||||||||||||
Change
|
$ | 81,946 | $ | 3,502 | $ | 78,444 | $ | 64 | 0.4 | % | 0.3 | % | ||||||||||||
Change
|
5.0 | % | 0.6 | % | 7.7 | % | 4.5 | % | ||||||||||||||||
(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 its operating performance 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 apartment units for the period.
|
Equity Residential
|
Same Store Operating Expenses
|
$ in thousands - 101,312 Same Store Apartment Units
|
% of Actual
|
||||||||||||||||||||
2011
|
||||||||||||||||||||
Actual
|
Actual
|
$ | % |
Operating
|
||||||||||||||||
2011
|
2010
|
Change
|
Change
|
Expenses
|
||||||||||||||||
Real estate taxes
|
$ | 169,432 | $ | 166,675 | $ | 2,757 | 1.7 | % | 27.4 | % | ||||||||||
On-site payroll (1)
|
144,346 | 144,878 | (532 | ) | (0.4 | %) | 23.4 | % | ||||||||||||
Utilities (2)
|
96,702 | 95,083 | 1,619 | 1.7 | % | 15.7 | % | |||||||||||||
Repairs and maintenance (3)
|
89,549 | 89,128 | 421 | 0.5 | % | 14.5 | % | |||||||||||||
Property management costs (4)
|
68,497 | 65,219 | 3,278 | 5.0 | % | 11.1 | % | |||||||||||||
Insurance
|
19,394 | 20,605 | (1,211 | ) | (5.9 | %) | 3.1 | % | ||||||||||||
Leasing and advertising
|
11,515 | 14,266 | (2,751 | ) | (19.3 | %) | 1.9 | % | ||||||||||||
Other on-site operating expenses (5)
|
18,277 | 18,356 | (79 | ) | (0.4 | %) | 2.9 | % | ||||||||||||
Same store operating expenses
|
$ | 617,712 | $ | 614,210 | $ | 3,502 | 0.6 | % | 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.
|
|||||||||
Equity Residential
|
Debt Summary as of December 31, 2011
|
||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||
Weighted
|
||||||||||||||||
Weighted
|
Average
|
|||||||||||||||
Average
|
Maturities
|
|||||||||||||||
Amounts (1)
|
% of Total
|
Rates (1)
|
(years)
|
|||||||||||||
Secured
|
$ | 4,111,487 | 42.3 | % | 4.84 | % | 8.3 | |||||||||
Unsecured
|
5,609,574 | 57.7 | % | 5.15 | % | 5.2 | ||||||||||
Total
|
$ | 9,721,061 | 100.0 | % | 5.01 | % | 6.5 | |||||||||
Fixed Rate Debt:
|
||||||||||||||||
Secured - Conventional
|
$ | 3,581,203 | 36.8 | % | 5.56 | % | 6.9 | |||||||||
Unsecured - Public/Private
|
4,803,191 | 49.4 | % | 5.84 | % | 5.9 | ||||||||||
Fixed Rate Debt
|
8,384,394 | 86.2 | % | 5.71 | % | 6.3 | ||||||||||
Floating Rate Debt:
|
||||||||||||||||
Secured - Conventional
|
64,428 | 0.7 | % | 3.16 | % | 1.5 | ||||||||||
Secured - Tax Exempt
|
465,856 | 4.8 | % | 0.23 | % | 20.9 | ||||||||||
Unsecured - Public/Private
|
806,383 | 8.3 | % | 1.67 | % | 0.9 | ||||||||||
Unsecured - Revolving Credit Facility (2)
|
- | - | 1.42 | % | 2.5 | |||||||||||
Floating Rate Debt
|
1,336,667 | 13.8 | % | 1.36 | % | 7.6 | ||||||||||
Total
|
$ | 9,721,061 | 100.0 | % | 5.01 | % | 6.5 |
(1)
|
Net of the effect of any derivative instruments. Weighted average rates are for the year ended December 31, 2011.
|
||||||||||||
(2)
|
On July 13, 2011, the Company 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. Subsequent to year-end, the Company amended this facility to increase available borrowings by $500.0 million to $1.75 billion. The terms did not change, including the July 13, 2014 maturity date.
|
||||||||||||
Note: The Company capitalized interest of approximately $9.1 million and $13.0 million during the years ended December 31, 2011 and 2010, respectively.
|
Debt Maturity Schedule as of December 31, 2011
|
|||||||||||||
(Amounts in thousands)
|
|||||||||||||
Weighted
|
Weighted
|
|||||||||||||||||||||||||||
Average Rates
|
Average
|
|||||||||||||||||||||||||||
Fixed
|
Floating
|
on Fixed
|
Rates on
|
|||||||||||||||||||||||||
Year
|
Rate (1)
|
Rate (1)
|
Total
|
% of Total
|
Rate Debt (1)
|
Total Debt (1)
|
||||||||||||||||||||||
2012
|
$ | 625,227 | $ | 536,355 | (2) | $ | 1,161,582 | 11.9 | % | 6.04 | % | 3.72 | % | |||||||||||||||
2013
|
272,925 | 306,750 | 579,675 | 6.0 | % | 6.71 | % | 4.88 | % | |||||||||||||||||||
2014
|
566,479 | 21,861 | 588,340 | 6.1 | % | 5.32 | % | 5.24 | % | |||||||||||||||||||
2015
|
419,049 | (149 | ) | (3) | 418,900 | 4.3 | % | 6.31 | % | 6.31 | % | |||||||||||||||||
2016
|
1,190,187 | (149 | ) | (3) | 1,190,038 | 12.2 | % | 5.34 | % | 5.34 | % | |||||||||||||||||
2017
|
1,355,457 | 306 | 1,355,763 | 13.9 | % | 5.87 | % | 5.87 | % | |||||||||||||||||||
2018
|
80,395 | 16,267 | 96,662 | 1.0 | % | 5.72 | % | 4.91 | % | |||||||||||||||||||
2019
|
801,387 | 20,617 | 822,004 | 8.5 | % | 5.49 | % | 5.36 | % | |||||||||||||||||||
2020
|
1,671,455 | 659 | 1,672,114 | 17.2 | % | 5.50 | % | 5.50 | % | |||||||||||||||||||
2021
|
1,165,332 | 706 | 1,166,038 | 12.0 | % | 4.64 | % | 4.64 | % | |||||||||||||||||||
2022+ | 236,501 | 433,444 | 669,945 | 6.9 | % | 6.75 | % | 2.84 | % | |||||||||||||||||||
Total
|
$ | 8,384,394 | $ | 1,336,667 | $ | 9,721,061 | 100.0 | % | 5.56 | % | 5.00 | % | ||||||||||||||||
(1)
|
Net of the effect of any derivative instruments. Weighted average rates are as of December 31, 2011.
|
(2)
|
Effective April 5, 2011, the Company exercised the second of its two one-year extension options for its $500.0 million term loan facility and as a result, the maturity date is now October 5, 2012.
|
(3)
|
There is no floating rate debt maturing in 2015 and 2016. The amounts above represent amortization of discounts on floating rate debt.
|
Equity Residential
|
Unsecured Debt Summary as of December 31, 2011
|
(Amounts in thousands)
|
Unamortized
|
||||||||||||||||||||
Coupon
|
Due
|
Face
|
Premium/
|
Net
|
||||||||||||||||
Rate
|
Date
|
Amount
|
(Discount)
|
Balance
|
||||||||||||||||
Fixed Rate Notes:
|
||||||||||||||||||||
6.625% |
03/15/12
|
$ | 253,858 | $ | (46 | ) | $ | 253,812 | ||||||||||||
5.500% |
10/01/12
|
222,133 | (164 | ) | 221,969 | |||||||||||||||
5.200% |
04/01/13
|
(1 | ) | 400,000 | (148 | ) | 399,852 | |||||||||||||
Fair Value Derivative Adjustments
|
(1 | ) | (300,000 | ) | - | (300,000 | ) | |||||||||||||
5.250% |
09/15/14
|
500,000 | (167 | ) | 499,833 | |||||||||||||||
6.584% |
04/13/15
|
300,000 | (359 | ) | 299,641 | |||||||||||||||
5.125% |
03/15/16
|
500,000 | (224 | ) | 499,776 | |||||||||||||||
5.375% |
08/01/16
|
400,000 | (850 | ) | 399,150 | |||||||||||||||
5.750% |
06/15/17
|
650,000 | (2,797 | ) | 647,203 | |||||||||||||||
7.125% |
10/15/17
|
150,000 | (376 | ) | 149,624 | |||||||||||||||
4.750% |
07/15/20
|
600,000 | (3,891 | ) | 596,109 | |||||||||||||||
4.625% |
12/15/21
|
1,000,000 | (3,778 | ) | 996,222 | |||||||||||||||
7.570% |
08/15/26
|
140,000 | - | 140,000 | ||||||||||||||||
4,815,991 | (12,800 | ) | 4,803,191 | |||||||||||||||||
Floating Rate Notes:
|
||||||||||||||||||||
04/01/13
|
(1 | ) | 300,000 | - | 300,000 | |||||||||||||||
Fair Value Derivative Adjustments
|
(1 | ) | 6,383 | - | 6,383 | |||||||||||||||
Term Loan Facility
|
LIBOR+0.50%
|
10/05/12
|
(2 | )(3) | 500,000 | - | 500,000 | |||||||||||||
806,383 | - | 806,383 | ||||||||||||||||||
Revolving Credit Facility:
|
LIBOR+1.15%
|
07/13/14
|
(2 | )(4) | - | - | - | |||||||||||||
Total Unsecured Debt
|
$ | 5,622,374 | $ | (12,800 | ) | $ | 5,609,574 | |||||||||||||
(1)
|
Fair value interest rate swaps convert $300.0 million of the 5.200% notes due April 1, 2013 to a floating interest rate.
|
||||||||||
(2)
|
Facilities are private. All other unsecured debt is public.
|
||||||||||
(3)
|
Effective April 5, 2011, the Company exercised the second of its two one-year extension options for its $500.0 million term loan facility and as a result, the maturity date is now October 5, 2012. Subsequent to year-end, the Company entered into a new senior unsecured $500.0 million delayed draw term loan facility that may be drawn anytime on or before July 4, 2012 and is currently undrawn. If the Company elects to draw on this facility, the full amount of the principal will be funded in a single borrowing and the maturity date will be January 4, 2013, subject to two one-year extension options exercisable by the Company. The interest rate on advances under the new term loan facility will generally be LIBOR plus a spread (currently 1.25%), which is dependent on the credit rating of the Company's long term debt.
|
||||||||||
(4)
|
On July 13, 2011, the Company 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. Subsequent to year-end, the Company amended this facility to increase available borrowings by $500.0 million to $1.75 billion. The terms did not change, including the July 13, 2014 maturity date. As of January 31, 2012, there was approximately $1.72 billion available on the Company's unsecured revolving credit facility.
|
Equity Residential
|
Capital Structure as of December 31, 2011
|
||||||||||||||||||||
(Amounts in thousands except for share/unit and per share amounts)
|
||||||||||||||||||||
Secured Debt
|
$ | 4,111,487 | 42.3 | % | ||||||||||||||||
Unsecured Debt
|
5,609,574 | 57.7 | % | |||||||||||||||||
Total Debt
|
9,721,061 | 100.0 | % | 35.1 | % | |||||||||||||||
Common Shares (includes Restricted Shares)
|
297,508,185 | 95.7 | % | |||||||||||||||||
Units (includes OP Units and LTIP Units)
|
13,492,543 | 4.3 | % | |||||||||||||||||
Total Shares and Units
|
311,000,728 | 100.0 | % | |||||||||||||||||
Common Share Price at December 31, 2011
|
$ | 57.03 | ||||||||||||||||||
17,736,372 | 98.9 | % | ||||||||||||||||||
Perpetual Preferred Equity (see below)
|
200,000 | 1.1 | % | |||||||||||||||||
Total Equity
|
17,936,372 | 100.0 | % | 64.9 | % | |||||||||||||||
Total Market Capitalization
|
$ | 27,657,433 | 100.0 | % |
Perpetual Preferred Equity as of December 31, 2011
|
(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 Unit
|
Weighted Average Amounts Outstanding
|
2011
|
2010
|
|||||||
Weighted Average Amounts Outstanding for Net Income Purposes:
|
||||||||
Common Shares - basic
|
294,855,772 | 282,887,601 | ||||||
Shares issuable from assumed conversion/vesting of (1):
|
||||||||
- OP Units
|
13,205,924 | - | ||||||
- long-term compensation shares/units
|
4,003,066 | - | ||||||
Total Common Shares and Units - diluted (1)
|
312,064,762 | 282,887,601 | ||||||
Period Ending Amounts Outstanding:
|
||||||||
Common Shares (includes Restricted Shares)
|
297,508,185 | 290,197,242 | ||||||
Units (includes OP Units and LTIP Units)
|
13,492,543 | 13,612,037 | ||||||
Total Shares and Units
|
311,000,728 | 303,809,279 | ||||||
(1)
|
Potential common shares issuable from the assumed conversion of OP Units and the exercise/vesting of long-term compensation shares/units are automatically anti-dilutive and therefore excluded from the diluted earnings per share calculation as the Company had a loss from continuing operations for the year ended December 31, 2010.
|
Equity Residential
|
Partially Owned Entities as of December 31, 2011
|
(Amounts in thousands except for project and apartment unit amounts)
|
Consolidated
|
||||||||||||||||
Development Projects
|
||||||||||||||||
Held for
|
||||||||||||||||
and/or Under
|
Completed
|
|||||||||||||||
Development
|
and Stabilized
|
Other
|
Total
|
|||||||||||||
Total projects (1)
|
- | 2 | 19 | 21 | ||||||||||||
Total apartment units (1)
|
- | 441 | 3,475 | 3,916 | ||||||||||||
Operating information for the year ended 12/31/11 (at 100%):
|
||||||||||||||||
Operating revenue
|
$ | - | $ | 8,961 | $ | 57,916 | $ | 66,877 | ||||||||
Operating expenses
|
249 | 3,868 | 19,115 | 23,232 | ||||||||||||
Net operating (loss) income
|
(249 | ) | 5,093 | 38,801 | 43,645 | |||||||||||
Depreciation
|
- | 4,163 | 15,117 | 19,280 | ||||||||||||
General and administrative/other
|
152 | 6 | 123 | 281 | ||||||||||||
Operating (loss) income
|
(401 | ) | 924 | 23,561 | 24,084 | |||||||||||
Interest and other income
|
6 | 6 | 10 | 22 | ||||||||||||
Other expenses
|
(487 | ) | - | (39 | ) | (526 | ) | |||||||||
Interest:
|
||||||||||||||||
Expense incurred, net
|
(399 | ) | (3,229 | ) | (11,295 | ) | (14,923 | ) | ||||||||
Amortization of deferred financing costs
|
- | (382 | ) | (366 | ) | (748 | ) | |||||||||
(Loss) income before income and other taxes and net gains
|
||||||||||||||||
on sales of land parcels and discontinued operations
|
(1,281 | ) | (2,681 | ) | 11,871 | 7,909 | ||||||||||
Income and other tax (expense) benefit
|
(57 | ) | - | (6 | ) | (63 | ) | |||||||||
Net gain on sales of land parcels
|
4,217 | - | - | 4,217 | ||||||||||||
Net gain on sales of discontinued operations
|
169 | - | 13,259 | 13,428 | ||||||||||||
Net income (loss)
|
$ | 3,048 | $ | (2,681 | ) | $ | 25,124 | $ | 25,491 | |||||||
Debt - Secured (2):
|
||||||||||||||||
EQR Ownership (3)
|
$ | - | $ | 33,419 | $ | 159,068 | $ | 192,487 | ||||||||
Noncontrolling Ownership
|
- | - | 41,269 | 41,269 | ||||||||||||
Total (at 100%)
|
$ | - | $ | 33,419 | $ | 200,337 | $ | 233,756 | ||||||||
(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 current economic ownership interest.
|
||||||||||||||||
Equity Residential
|
Development and Lease-Up Projects as of December 31, 2011
|
(Amounts in thousands except for project and apartment unit amounts)
|
Total
|
Total Book
|
|||||||||||||||||||||||||||||||||||||||||
No. of
|
Total
|
Book
|
Value Not
|
Estimated
|
Estimated
|
|||||||||||||||||||||||||||||||||||||
Apartment
|
Capital
|
Value
|
Placed in
|
Total
|
Percentage
|
Percentage
|
Percentage
|
Completion
|
Stabilization
|
|||||||||||||||||||||||||||||||||
Projects
|
Location
|
Units
|
Cost (1)
|
to Date
|
Service
|
Debt
|
Completed
|
Leased
|
Occupied
|
Date
|
Date
|
|||||||||||||||||||||||||||||||
Consolidated
|
||||||||||||||||||||||||||||||||||||||||||
Projects Under Development - Wholly Owned: | ||||||||||||||||||||||||||||||||||||||||||
Savoy III
|
Aurora, CO
|
168 | $23,856 | $15,785 | $15,785 | $ | - | 80 | % | 1 | % | - | Q2 2012 | Q2 2013 | ||||||||||||||||||||||||||||
2201 Pershing Drive
|
Arlington, VA
|
188 | 64,242 | 30,927 | 30,927 | - | 43 | % | - | - | Q3 2012 | Q3 2013 | ||||||||||||||||||||||||||||||
Chinatown Gateway
|
Los Angeles, CA
|
280 | 92,920 | 35,011 | 35,011 | - | 11 | % | - | - | Q3 2013 | Q2 2015 | ||||||||||||||||||||||||||||||
Westgate Block 2
|
Pasadena, CA
|
252 | 125,293 | 35,086 | 35,086 | - | 1 | % | - | - | Q1 2014 | Q1 2015 | ||||||||||||||||||||||||||||||
The Madison
|
Alexandria, VA
|
360 | 115,072 | 27,376 | 27,376 | - | 1 | % | - | - | Q1 2014 | Q2 2015 | ||||||||||||||||||||||||||||||
Market Street Landing
|
Seattle, WA
|
287 | 90,024 | 16,005 | 16,005 | - | 1 | % | - | - | Q1 2014 | Q3 2015 | ||||||||||||||||||||||||||||||
Projects Under Development - Wholly Owned
|
1,535 | 511,407 | 160,190 | 160,190 | - | |||||||||||||||||||||||||||||||||||||
Projects Under Development
|
1,535 | 511,407 | 160,190 | 160,190 | - | |||||||||||||||||||||||||||||||||||||
Completed Not Stabilized - Wholly Owned (2): | ||||||||||||||||||||||||||||||||||||||||||
88 Hillside (3)
|
Daly City, CA
|
95 | 39,520 | 39,520 | - | - | 52 | % | 47 | % |
Completed
|
Q2 2012 | ||||||||||||||||||||||||||||||
Ten23 (formerly 500 West 23rd Street) (4)
|
New York, NY
|
111 | 55,555 | 53,002 | - | - | 18 | % | - |
Completed
|
Q4 2012 | |||||||||||||||||||||||||||||||
Projects Completed Not Stabilized - Wholly Owned
|
206 | 95,075 | 92,522 | - | - | |||||||||||||||||||||||||||||||||||||
Projects Completed Not Stabilized
|
206 | 95,075 | 92,522 | - | - | |||||||||||||||||||||||||||||||||||||
Completed and Stabilized During the Quarter - Wholly Owned:
|
||||||||||||||||||||||||||||||||||||||||||
425 Mass (3)
|
Washington, D.C.
|
559 | 166,750 | 166,750 | - | - | 96 | % | 93 | % |
Completed
|
Stabilized
|
||||||||||||||||||||||||||||||
Vantage Pointe (3)
|
San Diego, CA
|
679 | 200,000 | 200,000 | - | - | 93 | % | 91 | % |
Completed
|
Stabilized
|
||||||||||||||||||||||||||||||
Projects Completed and Stabilized During the Quarter - Wholly Owned
|
1,238 | 366,750 | 366,750 | - | - | |||||||||||||||||||||||||||||||||||||
Projects Completed and Stabilized During the Quarter
|
1,238 | 366,750 | 366,750 | - | - | |||||||||||||||||||||||||||||||||||||
Total Consolidated Projects
|
2,979 | $973,232 | $619,462 | $160,190 | $ | - | ||||||||||||||||||||||||||||||||||||
Land Held for Development (5)
|
N/A | N/A | $325,200 | $325,200 | $ | - | ||||||||||||||||||||||||||||||||||||
Unconsolidated
|
||||||||||||||||||||||||||||||||||||||||||
Projects Under Development - Unconsolidated:
|
||||||||||||||||||||||||||||||||||||||||||
Domain (6)
|
San Jose, CA
|
444 | $154,570 | $38,148 | $38,148 | $ | - | 2 | % | - | - | Q1 2013 | Q1 2015 | |||||||||||||||||||||||||||||
Nexus Sawgrass (formerly Sunrise Village) (6)
|
Sunrise, FL
|
501 | 78,212 | 22,940 | 22,940 | - | 10 | % | - | - | Q3 2013 | Q3 2014 | ||||||||||||||||||||||||||||||
Projects Under Development - Unconsolidated
|
945 | 232,782 | 61,088 | 61,088 | - | |||||||||||||||||||||||||||||||||||||
Projects Under Development
|
945 | 232,782 | 61,088 | 61,088 | - | |||||||||||||||||||||||||||||||||||||
Total Unconsolidated Projects
|
945 | $232,782 | $61,088 | $61,088 | $ | - | ||||||||||||||||||||||||||||||||||||
(1)
|
Total capital cost represents estimated cost for projects under development and/or developed 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)
|
Properties included here are substantially complete. However, they may still require additional exterior and interior work for all apartment units to be available for leasing.
|
||||||||||||||||||||||
(3)
|
The Company acquired these completed development projects prior to stabilization and has continued or is finishing lease-up activities.
|
||||||||||||||||||||||
(4)
|
Ten23 - The land under this development is subject to a long term ground lease.
|
||||||||||||||||||||||
(5)
|
Includes $58.3 million funded by Toll Brothers (NYSE: TOL) for their allocated share of a vacant land parcel at 400 Park Avenue South in New York City.
|
||||||||||||||||||||||
(6)
|
These development projects 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. The Company's remaining funding obligations are currently estimated at $5.4 million.
|
Equity Residential
|
Repairs and Maintenance Expenses and Capital Expenditures to Real Estate
|
For the Year Ended December 31, 2011
|
(Amounts in thousands except for apartment unit and per apartment unit amounts)
|
Capital Expenditures to Real Estate
|
|||||||||||||||||||||||||||||||
Total
|
Avg. Per
|
Building
|
Avg. Per
|
Avg. Per
|
|||||||||||||||||||||||||||
Apartment
|
Replacements
|
Apartment
|
Improvements
|
Apartment
|
Apartment
|
||||||||||||||||||||||||||
Units (1)
|
(2) |
Unit
|
(3) |
Unit
|
Total
|
Unit
|
|||||||||||||||||||||||||
Same Store Properties (4)
|
101,312 | $ | 70,937 | $ | 700 | $ | 49,674 | $ | 490 | $ | 120,611 | $ | 1,190 | (7) | |||||||||||||||||
Non-Same Store Properties (5)
|
15,761 | 7,505 | 658 | 13,827 | 1,211 | 21,332 | 1,869 | ||||||||||||||||||||||||
Other (6)
|
- | 2,147 | 362 | 2,509 | |||||||||||||||||||||||||||
Total
|
117,073 | $ | 80,589 | $ | 63,863 | $ | 144,452 | ||||||||||||||||||||||||
(1)
|
Total Apartment Units - Excludes 4,901 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 $38.1 million spent in 2011 on apartment unit renovations/rehabs (primarily kitchens and baths) on 5,416 apartment units (equating to about $7,000 per apartment unit rehabbed) designed to reposition these assets for higher rental levels in their respective markets. In 2012, the Company expects to spend approximately $39.2 million rehabbing 4,700 apartment units (equating to about $8,300 per apartment unit rehabbed).
|
||||||||||||||
(3)
|
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.
|
||||||||||||||
(4)
|
Same Store Properties - Primarily includes all properties acquired or completed and stabilized prior to January 1, 2010, less properties subsequently sold.
|
||||||||||||||
(5)
|
Non-Same Store Properties - Primarily includes all properties acquired during 2010 and 2011, plus any properties in lease-up and not stabilized as of January 1, 2010. Per apartment unit amounts are based on a weighted average of 11,414 apartment units.
|
||||||||||||||
(6)
|
Other - Primarily includes expenditures for properties sold during the period.
|
||||||||||||||
(7)
|
For 2012, the Company estimates that it will spend approximately $1,225 per apartment unit of capital expenditures for its same store properties inclusive of apartment unit renovation/rehab costs, or $850 per apartment unit excluding apartment unit renovation/rehab costs.
|
Equity Residential
|
Discontinued Operations
|
(Amounts in thousands)
|
Year Ended
|
|||||||||
December 31,
|
|||||||||
2011
|
2010
|
||||||||
REVENUES
|
|||||||||
Rental income
|
$ | 96,156 | $ | 289,921 | |||||
Total revenues
|
96,156 | 289,921 | |||||||
EXPENSES (1)
|
|||||||||
Property and maintenance
|
47,972 | 115,215 | |||||||
Real estate taxes and insurance
|
6,152 | 23,306 | |||||||
Depreciation
|
16,653 | 60,257 | |||||||
General and administrative
|
53 | 42 | |||||||
Total expenses
|
70,830 | 198,820 | |||||||
Discontinued operating income
|
25,326 | 91,101 | |||||||
Interest and other income
|
184 | 800 | |||||||
Interest (2):
|
|||||||||
Expense incurred, net
|
(203 | ) | (10,070 | ) | |||||
Amortization of deferred financing costs
|
(840 | ) | (292 | ) | |||||
Income and other tax (expense) benefit
|
243 | (86 | ) | ||||||
Discontinued operations
|
24,710 | 81,453 | |||||||
Net gain on sales of discontinued operations
|
826,489 | 297,956 | |||||||
Discontinued operations, net
|
$ | 851,199 | $ | 379,409 | |||||
(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
|
(Amounts in thousands)
|
Same Store NOI Reconciliation
|
||||||||
The following tables present reconciliations of operating income per the consolidated statements of operations to NOI for 2011 Same Store Properties:
|
||||||||
Year Ended December 31,
|
||||||||
2011
|
2010
|
|||||||
Operating income
|
$ | 573,332 | $ | 376,077 | ||||
Adjustments:
|
||||||||
Non-same store operating results
|
(164,438 | ) | (53,734 | ) | ||||
Fee and asset management revenue
|
(9,026 | ) | (9,476 | ) | ||||
Fee and asset management expense
|
4,279 | 4,998 | ||||||
Depreciation
|
646,963 | 613,146 | ||||||
General and administrative
|
43,606 | 39,881 | ||||||
Impairment
|
- | 45,380 | ||||||
Same store NOI
|
$ | 1,094,716 | $ | 1,016,272 |