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)
|
Exhibit
|
||
Number
|
Exhibit
|
|
99.1
|
Press Release dated July 25, 2012, announcing the results of operations and financial condition of Equity Residential as of June 30, 2012 and for the six months and quarter then ended.
|
|
99.2
|
Selected financial results and related information of Equity Residential for the six months and quarter ended June 30, 2012.
|
EQUITY RESIDENTIAL
|
||
Date: July 25, 2012
|
By:
|
/s/ Ian S. Kaufman
|
Name:
|
Ian S. Kaufman
|
|
Its:
|
Senior Vice President and Chief Accounting Officer
|
|
(Principal Accounting Officer)
|
Exhibit
|
||
Number
|
Exhibit
|
|
99.1
|
Press Release dated July 25, 2012, announcing the results of operations and financial condition of Equity Residential as of June 30, 2012 and for the six months and quarter then ended.
|
|
99.2
|
Selected financial results and related information of Equity Residential for the six months and quarter ended June 30, 2012.
|
·
|
A positive impact of approximately $0.08 per share from total property net operating income (NOI) including $0.07 per share from higher same store NOI and $0.01 per share from higher NOI from properties in lease-up;
|
·
|
A positive impact of approximately $0.01 per share from net accretion due to the timing and volume of 2011 and 2012 transaction activity; and
|
·
|
A negative impact of approximately $0.01 per share from higher general and administrative expenses.
|
·
|
A positive impact of approximately $0.03 per share from total property NOI; and
|
·
|
A positive impact of approximately $0.01 per share from lower preferred share distributions as a result of the redemption of the company’s Series N Preferred Shares and lower interest expense.
|
Previous
|
Revised
|
|||
Same store:
|
||||
Physical occupancy
|
95.2%
|
95.2%
|
||
Revenue change
|
5.0% to 6.0%
|
5.4% to 5.6%
|
||
Expense change
|
1.5% to 2.5%
|
1.5% to 2.5%
|
||
NOI change
|
6.5% to 8.5%
|
7.0% to 8.0%
|
||
Acquisitions:
|
$1.25 billion
|
$1.25 billion
|
||
Dispositions:
|
$1.25 billion
|
$1.25 billion
|
||
Cap Rate Spread:
|
125 basis points
|
130 basis points
|
||
Normalized FFO per share:
|
$2.68 to $2.78
|
$2.73 to $2.78
|
||
·
|
A positive impact of approximately $0.01 per share from total property NOI;
|
·
|
A positive impact of approximately $0.01 per share from lower preferred share distributions as a result of the redemption of the company’s Series N Preferred Shares; and
|
·
|
A positive impact of approximately $0.01 per share from lower interest expense.
|
Equity Residential
|
||||||||||||||||
Consolidated Statements of Operations
|
||||||||||||||||
(Amounts in thousands except per share data)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Six Months Ended June 30,
|
Quarter Ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
REVENUES
|
||||||||||||||||
Rental income
|
$
|
1,063,162
|
$
|
939,121
|
$
|
541,569
|
$
|
478,419
|
||||||||
Fee and asset management
|
4,276
|
3,754
|
2,212
|
1,948
|
||||||||||||
Total revenues
|
1,067,438
|
942,875
|
543,781
|
480,367
|
||||||||||||
EXPENSES
|
||||||||||||||||
Property and maintenance
|
218,004
|
202,157
|
107,024
|
98,571
|
||||||||||||
Real estate taxes and insurance
|
118,768
|
106,610
|
63,126
|
54,803
|
||||||||||||
Property management
|
44,417
|
43,148
|
21,008
|
20,767
|
||||||||||||
Fee and asset management
|
2,487
|
1,957
|
1,180
|
1,009
|
||||||||||||
Depreciation
|
346,079
|
311,891
|
172,338
|
154,452
|
||||||||||||
General and administrative
|
27,082
|
22,341
|
13,394
|
10,908
|
||||||||||||
Total expenses
|
756,837
|
688,104
|
378,070
|
340,510
|
||||||||||||
Operating income
|
310,601
|
254,771
|
165,711
|
139,857
|
||||||||||||
Interest and other income
|
431
|
1,288
|
259
|
277
|
||||||||||||
Other expenses
|
(16,584
|
)
|
(6,790
|
)
|
(9,517
|
)
|
(4,630
|
)
|
||||||||
Interest:
|
||||||||||||||||
Expense incurred, net
|
(234,247
|
)
|
(240,443
|
)
|
(115,618
|
)
|
(119,997
|
)
|
||||||||
Amortization of deferred financing costs
|
(7,037
|
)
|
(7,401
|
)
|
(4,063
|
)
|
(4,396
|
)
|
||||||||
Income before income and other taxes, net gain on sales
|
||||||||||||||||
of land parcels and discontinued operations
|
53,164
|
1,425
|
36,772
|
11,111
|
||||||||||||
Income and other tax (expense) benefit
|
(405
|
)
|
(386
|
)
|
(214
|
)
|
(202
|
)
|
||||||||
Net gain on sales of land parcels
|
—
|
4,217
|
—
|
4,217
|
||||||||||||
Income from continuing operations
|
52,759
|
5,256
|
36,558
|
15,126
|
||||||||||||
Discontinued operations, net
|
207,723
|
709,563
|
71,757
|
566,627
|
||||||||||||
Net income
|
260,482
|
714,819
|
108,315
|
581,753
|
||||||||||||
Net (income) attributable to Noncontrolling Interests:
|
||||||||||||||||
Operating Partnership
|
(11,150
|
)
|
(31,533
|
)
|
(4,732
|
)
|
(25,758
|
)
|
||||||||
Partially Owned Properties
|
(769
|
)
|
(31
|
)
|
(319
|
)
|
(71
|
)
|
||||||||
Net income attributable to controlling interests
|
248,563
|
683,255
|
103,264
|
555,924
|
||||||||||||
Preferred distributions
|
(6,933
|
)
|
(6,933
|
)
|
(3,467
|
)
|
(3,467
|
)
|
||||||||
Net income available to Common Shares
|
$
|
241,630
|
$
|
676,322
|
$
|
99,797
|
$
|
552,457
|
||||||||
Earnings per share – basic:
|
||||||||||||||||
Income (loss) from continuing operations available to Common
|
||||||||||||||||
Shares
|
$
|
0.14
|
$
|
(0.01
|
)
|
$
|
0.10
|
$
|
0.04
|
|||||||
Net income available to Common Shares
|
$
|
0.81
|
$
|
2.30
|
$
|
0.33
|
$
|
1.88
|
||||||||
Weighted average Common Shares outstanding
|
299,499
|
293,784
|
300,193
|
294,663
|
||||||||||||
Earnings per share – diluted:
|
||||||||||||||||
Income (loss) from continuing operations available to Common
|
||||||||||||||||
Shares
|
$
|
0.14
|
$
|
(0.01
|
)
|
$
|
0.10
|
$
|
0.04
|
|||||||
Net income available to Common Shares
|
$
|
0.80
|
$
|
2.30
|
$
|
0.33
|
$
|
1.85
|
||||||||
Weighted average Common Shares outstanding
|
316,457
|
293,784
|
317,648
|
312,199
|
||||||||||||
Distributions declared per Common Share outstanding
|
$
|
0.6750
|
$
|
0.6750
|
$
|
0.3375
|
$
|
0.3375
|
Equity Residential
|
||||||||||||||||
Consolidated Statements of Funds From Operations and Normalized Funds From Operations
|
||||||||||||||||
(Amounts in thousands except per share data)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Six Months Ended June 30,
|
Quarter Ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net income
|
$
|
260,482
|
$
|
714,819
|
$
|
108,315
|
$
|
581,753
|
||||||||
Adjustments:
|
||||||||||||||||
Net (income) attributable to Noncontrolling Interests –
|
||||||||||||||||
Partially Owned Properties
|
(769
|
)
|
(31
|
)
|
(319
|
)
|
(71
|
)
|
||||||||
Depreciation
|
346,079
|
311,891
|
172,338
|
154,452
|
||||||||||||
Depreciation – Non-real estate additions
|
(2,781
|
)
|
(2,905
|
)
|
(1,427
|
)
|
(1,521
|
)
|
||||||||
Depreciation – Partially Owned and Unconsolidated Properties
|
(1,597
|
)
|
(1,505
|
)
|
(797
|
)
|
(755
|
)
|
||||||||
Discontinued operations:
|
||||||||||||||||
Depreciation
|
2,027
|
18,951
|
660
|
7,081
|
||||||||||||
Net (gain) on sales of discontinued operations
|
(204,053
|
)
|
(682,236
|
)
|
(71,097
|
)
|
(558,482
|
)
|
||||||||
Net incremental gain on sales of condominium units
|
49
|
1,115
|
—
|
720
|
||||||||||||
Gain on sale of Equity Corporate Housing (ECH)
|
350
|
1,024
|
350
|
1,024
|
||||||||||||
FFO (1) (3)
|
399,787
|
361,123
|
208,023
|
184,201
|
||||||||||||
Adjustments (see page 24 for additional detail):
|
||||||||||||||||
Asset impairment and valuation allowances
|
—
|
—
|
—
|
—
|
||||||||||||
Property acquisition costs and write-off of pursuit costs (other
|
||||||||||||||||
expenses)
|
10,894
|
6,790
|
8,268
|
4,626
|
||||||||||||
Debt extinguishment (gains) losses, including prepayment
|
||||||||||||||||
penalties, preferred share redemptions and non-cash
|
||||||||||||||||
convertible debt discounts
|
1,377
|
8,573
|
1,418
|
6,510
|
||||||||||||
(Gains) losses on sales of non-operating assets, net of income and
|
||||||||||||||||
other tax expense (benefit)
|
(491
|
)
|
(5,529
|
)
|
(487
|
)
|
(5,153
|
)
|
||||||||
Other miscellaneous non-comparable items
|
2,223
|
(2,100
|
)
|
1,249
|
—
|
|||||||||||
Normalized FFO (2) (3)
|
$
|
413,790
|
$
|
368,857
|
$
|
218,471
|
$
|
190,184
|
||||||||
FFO (1) (3)
|
$
|
399,787
|
$
|
361,123
|
$
|
208,023
|
$
|
184,201
|
||||||||
Preferred distributions
|
(6,933
|
)
|
(6,933
|
)
|
(3,467
|
)
|
(3,467
|
)
|
||||||||
FFO available to Common Shares and Units - basic and diluted (1) (3) (4)
|
$
|
392,854
|
$
|
354,190
|
$
|
204,556
|
$
|
180,734
|
||||||||
FFO per share and Unit - basic
|
$
|
1.25
|
$
|
1.15
|
$
|
0.65
|
$
|
0.59
|
||||||||
FFO per share and Unit - diluted
|
$
|
1.24
|
$
|
1.14
|
$
|
0.64
|
$
|
0.58
|
||||||||
Normalized FFO (2) (3)
|
$
|
413,790
|
$
|
368,857
|
$
|
218,471
|
$
|
190,184
|
||||||||
Preferred distributions
|
(6,933
|
)
|
(6,933
|
)
|
(3,467
|
)
|
(3,467
|
)
|
||||||||
Normalized FFO available to Common Shares and Units - basic and diluted (2) (3) (4)
|
$
|
406,857
|
$
|
361,924
|
$
|
215,004
|
$
|
186,717
|
||||||||
Normalized FFO per share and Unit - basic
|
$
|
1.30
|
$
|
1.18
|
$
|
0.68
|
$
|
0.61
|
||||||||
Normalized FFO per share and Unit - diluted
|
$
|
1.29
|
$
|
1.16
|
$
|
0.68
|
$
|
0.60
|
||||||||
Weighted average Common Shares and Units outstanding - basic
|
313,133
|
307,106
|
314,255
|
307,954
|
||||||||||||
Weighted average Common Shares and Units outstanding - diluted
|
316,457
|
311,380
|
317,648
|
312,199
|
||||||||||||
Equity Residential
|
||||||||
Consolidated Balance Sheets
|
||||||||
(Amounts in thousands except for share amounts)
|
||||||||
(Unaudited)
|
||||||||
June 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
ASSETS
|
||||||||
Investment in real estate
|
||||||||
Land
|
$
|
4,565,646
|
$
|
4,367,816
|
||||
Depreciable property
|
15,886,832
|
15,554,740
|
||||||
Projects under development
|
198,912
|
160,190
|
||||||
Land held for development
|
372,108
|
325,200
|
||||||
Investment in real estate
|
21,023,498
|
20,407,946
|
||||||
Accumulated depreciation
|
(4,777,887
|
)
|
(4,539,583
|
)
|
||||
Investment in real estate, net
|
16,245,611
|
15,868,363
|
||||||
Cash and cash equivalents
|
44,585
|
383,921
|
||||||
Investments in unconsolidated entities
|
17,886
|
12,327
|
||||||
Deposits – restricted
|
193,892
|
152,237
|
||||||
Escrow deposits – mortgage
|
9,139
|
10,692
|
||||||
Deferred financing costs, net
|
41,854
|
44,608
|
||||||
Other assets
|
161,445
|
187,155
|
||||||
Total assets
|
$
|
16,714,412
|
$
|
16,659,303
|
||||
LIABILITIES AND EQUITY
|
||||||||
Liabilities:
|
||||||||
Mortgage notes payable
|
$
|
4,004,496
|
$
|
4,111,487
|
||||
Notes, net
|
5,354,768
|
5,609,574
|
||||||
Lines of credit
|
35,000
|
-
|
||||||
Accounts payable and accrued expenses
|
72,647
|
35,206
|
||||||
Accrued interest payable
|
82,695
|
88,121
|
||||||
Other liabilities
|
430,650
|
291,289
|
||||||
Security deposits
|
68,265
|
65,286
|
||||||
Distributions payable
|
109,463
|
179,079
|
||||||
Total liabilities
|
10,157,984
|
10,380,042
|
||||||
Commitments and contingencies
|
||||||||
Redeemable Noncontrolling Interests – Operating Partnership
|
452,203
|
416,404
|
||||||
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
|
||||||||
June 30, 2012 and December 31, 2011
|
200,000
|
200,000
|
||||||
Common Shares of beneficial interest, $0.01 par value;
|
||||||||
1,000,000,000 shares authorized; 300,961,645 shares issued and outstanding as of
|
||||||||
June 30, 2012 and 297,508,185 shares issued and outstanding as of December 31, 2011
|
3,010
|
2,975
|
||||||
Paid in capital
|
5,226,088
|
5,047,186
|
||||||
Retained earnings
|
654,235
|
615,572
|
||||||
Accumulated other comprehensive (loss)
|
(198,075
|
)
|
(196,718
|
)
|
||||
Total shareholders’ equity
|
5,885,258
|
5,669,015
|
||||||
Noncontrolling Interests:
|
||||||||
Operating Partnership
|
144,521
|
119,536
|
||||||
Partially Owned Properties
|
74,446
|
74,306
|
||||||
Total Noncontrolling Interests
|
218,967
|
193,842
|
||||||
Total equity
|
6,104,225
|
5,862,857
|
||||||
Total liabilities and equity
|
$
|
16,714,412
|
$
|
16,659,303
|
Equity Residential
|
||||||||||||
Portfolio Summary
|
||||||||||||
As of June 30, 2012
|
||||||||||||
Markets
|
Properties
|
Apartment
Units
|
% of Total
Apartment
Units
|
% of
Stabilized
NOI (1)
|
Average
Rental
Rate (2)
|
|||||||
1
|
New York Metro Area
|
30
|
8,111
|
6.7%
|
13.6%
|
$ 3,333
|
||||||
2
|
DC Northern Virginia
|
26
|
9,381
|
7.8%
|
11.2%
|
2,116
|
||||||
3
|
Los Angeles
|
47
|
9,716
|
8.1%
|
9.6%
|
1,840
|
||||||
4
|
South Florida
|
39
|
12,990
|
10.8%
|
9.4%
|
1,445
|
||||||
5
|
Boston
|
26
|
5,832
|
4.8%
|
8.0%
|
2,494
|
||||||
6
|
San Francisco Bay Area
|
38
|
8,751
|
7.3%
|
7.4%
|
1,779
|
||||||
7
|
Seattle/Tacoma
|
44
|
9,901
|
8.2%
|
7.3%
|
1,476
|
||||||
8
|
Denver
|
24
|
8,138
|
6.8%
|
5.1%
|
1,189
|
||||||
9
|
San Diego
|
14
|
4,963
|
4.1%
|
5.0%
|
1,843
|
||||||
10
|
Suburban Maryland
|
17
|
5,096
|
4.2%
|
4.7%
|
1,657
|
||||||
11
|
Phoenix
|
29
|
8,431
|
7.0%
|
4.0%
|
952
|
||||||
12
|
Orlando
|
23
|
7,013
|
5.8%
|
3.7%
|
1,073
|
||||||
13
|
Orange County, CA
|
11
|
3,490
|
2.9%
|
3.2%
|
1,630
|
||||||
14
|
Inland Empire, CA
|
10
|
3,081
|
2.6%
|
2.4%
|
1,461
|
||||||
15
|
Atlanta
|
14
|
4,190
|
3.5%
|
2.2%
|
1,116
|
||||||
16
|
All Other Markets (3)
|
27
|
6,332
|
5.3%
|
3.2%
|
1,102
|
||||||
Total
|
419
|
115,416
|
95.9%
|
100.0%
|
1,674
|
|||||||
Military Housing
|
2
|
4,939
|
4.1%
|
-
|
-
|
|||||||
Grand Total
|
421
|
120,355
|
100.0%
|
100.0%
|
$ 1,674
|
|||||||
Note:
|
Projects under development are not included in the Portfolio Summary until construction has been completed.
|
|||||||||||
(1)
|
% of Stabilized NOI includes budgeted 2012 NOI for properties that are stabilized and projected annual NOI at stabilization (defined as having achieved 90% occupancy for three consecutive months) for properties that are in lease-up.
|
|||
(2)
|
Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment units for the month of June 2012.
|
|||
(3)
|
All Other Markets - Each individual market is less than 1.5% of stabilized NOI.
|
Equity Residential
|
|||||||||||||||
Portfolio as of June 30, 2012
|
|||||||||||||||
Properties
|
Apartment
Units
|
||||||||||||||
Wholly Owned Properties
|
398
|
111,500
|
|||||||||||||
Partially Owned Properties - Consolidated
|
21
|
3,916
|
|||||||||||||
Military Housing
|
2
|
4,939
|
|||||||||||||
421
|
120,355
|
||||||||||||||
Portfolio Rollforward Q2 2012
|
|||||||||||||||
($ in thousands)
|
|||||||||||||||
Properties
|
Apartment
Units
|
Purchase/
(Sale) Price
|
Cap
Rate
|
||||||||||||
3/31/2012
|
427
|
121,011
|
|||||||||||||
Acquisitions:
|
|||||||||||||||
Rental Properties - Consolidated
|
2
|
812
|
$
|
510,869
|
5.0
|
%
|
|||||||||
Dispositions:
|
|||||||||||||||
Rental Properties - Consolidated
|
(9
|
)
|
(1,662
|
)
|
$
|
(129,900
|
)
|
6.7
|
%
|
||||||
Completed Developments
|
1
|
168
|
|||||||||||||
Configuration Changes
|
-
|
26
|
|||||||||||||
6/30/2012
|
421
|
120,355
|
|||||||||||||
Portfolio Rollforward 2012
|
|||||||||||||||
($ in thousands)
|
|||||||||||||||
Properties
|
Apartment
Units
|
Purchase/
(Sale) Price
|
Cap
Rate
|
||||||||||||
12/31/2011
|
427
|
121,974
|
|||||||||||||
Acquisitions:
|
|||||||||||||||
Rental Properties - Consolidated
|
5
|
1,356
|
$
|
669,969
|
4.8
|
%
|
|||||||||
Land Parcels (two)
|
-
|
-
|
$
|
23,740
|
|||||||||||
Dispositions:
|
|||||||||||||||
Rental Properties - Consolidated
|
(12
|
)
|
(3,184
|
)
|
$
|
(336,250
|
)
|
6.4
|
%
|
||||||
Completed Developments
|
1
|
168
|
|||||||||||||
Configuration Changes
|
-
|
41
|
|||||||||||||
6/30/2012
|
421
|
120,355
|
Equity Residential
|
||||||||||||||||||||||||
Second Quarter 2012 vs. Second Quarter 2011
|
||||||||||||||||||||||||
Same Store Results/Statistics
|
||||||||||||||||||||||||
$ in thousands (except for Average Rental Rate) - 105,604 Same Store Apartment Units
|
||||||||||||||||||||||||
Results
|
Statistics
|
|||||||||||||||||||||||
Average
|
||||||||||||||||||||||||
Rental
|
||||||||||||||||||||||||
Description
|
Revenues
|
Expenses
|
NOI (1)
|
Rate (2)
|
Occupancy
|
Turnover
|
||||||||||||||||||
Q2 2012
|
$
|
489,865
|
$
|
170,209
|
$
|
319,656
|
$
|
1,626
|
95.2
|
%
|
15.5
|
%
|
||||||||||||
Q2 2011
|
$
|
464,313
|
$
|
166,862
|
$
|
297,451
|
$
|
1,539
|
95.4
|
%
|
15.1
|
%
|
||||||||||||
Change
|
$
|
25,552
|
$
|
3,347
|
$
|
22,205
|
$
|
87
|
(0.2
|
%)
|
0.4
|
%
|
||||||||||||
Change
|
5.5
|
%
|
2.0
|
%
|
7.5
|
%
|
5.7
|
%
|
||||||||||||||||
Second Quarter 2012 vs. First Quarter 2012
|
||||||||||||||||||||||||
Same Store Results/Statistics
|
||||||||||||||||||||||||
$ in thousands (except for Average Rental Rate) - 113,243 Same Store Apartment Units
|
||||||||||||||||||||||||
Results
|
Statistics
|
|||||||||||||||||||||||
Average
|
||||||||||||||||||||||||
Rental
|
||||||||||||||||||||||||
Description
|
Revenues
|
Expenses
|
NOI (1)
|
Rate (2)
|
Occupancy
|
Turnover
|
||||||||||||||||||
Q2 2012
|
$
|
530,496
|
$
|
185,963
|
$
|
344,533
|
$
|
1,643
|
95.1
|
%
|
15.4
|
%
|
||||||||||||
Q1 2012
|
$
|
518,249
|
$
|
189,874
|
$
|
328,375
|
$
|
1,611
|
94.8
|
%
|
12.3
|
%
|
||||||||||||
Change
|
$
|
12,247
|
$
|
(3,911
|
)
|
$
|
16,158
|
$
|
32
|
0.3
|
%
|
3.1
|
%
|
|||||||||||
Change
|
2.4
|
%
|
(2.1
|
%)
|
4.9
|
%
|
2.0
|
%
|
||||||||||||||||
June YTD 2012 vs. June YTD 2011
|
||||||||||||||||||||||||
Same Store Results/Statistics
|
||||||||||||||||||||||||
$ in thousands (except for Average Rental Rate) - 103,950 Same Store Apartment Units
|
||||||||||||||||||||||||
Results
|
Statistics
|
|||||||||||||||||||||||
Average
|
||||||||||||||||||||||||
Rental
|
||||||||||||||||||||||||
Description
|
Revenues
|
Expenses
|
NOI (1)
|
Rate (2)
|
Occupancy
|
Turnover
|
||||||||||||||||||
YTD 2012
|
$
|
950,505
|
$
|
338,380
|
$
|
612,125
|
$
|
1,605
|
95.1
|
%
|
27.9
|
%
|
||||||||||||
YTD 2011
|
$
|
901,181
|
$
|
331,925
|
$
|
569,256
|
$
|
1,520
|
95.2
|
%
|
26.6
|
%
|
||||||||||||
Change
|
$
|
49,324
|
$
|
6,455
|
$
|
42,869
|
$
|
85
|
(0.1
|
%)
|
1.3
|
%
|
||||||||||||
Change
|
5.5
|
%
|
1.9
|
%
|
7.5
|
%
|
5.6
|
%
|
||||||||||||||||
(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 26 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
|
|||||||||||||||||||||||||||||
Second Quarter 2012 vs. Second Quarter 2011
|
|||||||||||||||||||||||||||||
Same Store Results/Statistics by Market
|
|||||||||||||||||||||||||||||
Increase (Decrease) from Prior Year's Quarter
|
|||||||||||||||||||||||||||||
Markets
|
Apartment
Units
|
Q2 2012
% of
Actual
NOI
|
Q2 2012
Average
Rental
Rate (1)
|
Q2 2012
Weighted
Average
Occupancy %
|
Revenues
|
Expenses
|
NOI
|
Average
Rental
Rate (1)
|
Occupancy
|
||||||||||||||||||||
1
|
New York Metro Area
|
7,063
|
12.7
|
%
|
$
|
3,295
|
96.3
|
%
|
5.9
|
%
|
4.4
|
%
|
6.9
|
%
|
6.3
|
%
|
(0.4
|
%)
|
|||||||||||
2
|
DC Northern Virginia
|
7,974
|
10.4
|
%
|
2,063
|
96.0
|
%
|
4.7
|
%
|
4.8
|
%
|
4.7
|
%
|
4.8
|
%
|
(0.1
|
%)
|
||||||||||||
3
|
South Florida
|
12,743
|
10.1
|
%
|
1,423
|
95.0
|
%
|
4.8
|
%
|
1.2
|
%
|
7.1
|
%
|
4.1
|
%
|
0.6
|
%
|
||||||||||||
4
|
Los Angeles
|
8,312
|
9.1
|
%
|
1,796
|
94.7
|
%
|
4.0
|
%
|
(4.0
|
%)
|
8.1
|
%
|
3.8
|
%
|
0.0
|
%
|
||||||||||||
5
|
Boston
|
5,470
|
8.4
|
%
|
2,551
|
95.4
|
%
|
6.8
|
%
|
1.6
|
%
|
9.5
|
%
|
7.4
|
%
|
(0.6
|
%)
|
||||||||||||
6
|
Seattle/Tacoma
|
9,331
|
7.5
|
%
|
1,442
|
93.9
|
%
|
4.8
|
%
|
2.6
|
%
|
6.1
|
%
|
5.9
|
%
|
(0.9
|
%)
|
||||||||||||
7
|
San Francisco Bay Area
|
6,194
|
7.4
|
%
|
1,962
|
95.4
|
%
|
11.3
|
%
|
4.1
|
%
|
15.1
|
%
|
11.9
|
%
|
(0.5
|
%)
|
||||||||||||
8
|
Denver
|
7,970
|
5.8
|
%
|
1,176
|
95.4
|
%
|
9.2
|
%
|
2.4
|
%
|
12.6
|
%
|
9.2
|
%
|
0.0
|
%
|
||||||||||||
9
|
Phoenix
|
8,431
|
4.6
|
%
|
946
|
94.9
|
%
|
4.0
|
%
|
(4.1
|
%)
|
9.1
|
%
|
4.3
|
%
|
(0.4
|
%)
|
||||||||||||
10
|
San Diego
|
4,284
|
4.5
|
%
|
1,732
|
95.1
|
%
|
2.6
|
%
|
3.1
|
%
|
2.4
|
%
|
2.7
|
%
|
(0.2
|
%)
|
||||||||||||
11
|
Orlando
|
7,013
|
4.1
|
%
|
1,055
|
95.0
|
%
|
4.6
|
%
|
4.5
|
%
|
4.7
|
%
|
4.7
|
%
|
(0.1
|
%)
|
||||||||||||
12
|
Orange County, CA
|
3,490
|
3.5
|
%
|
1,632
|
95.4
|
%
|
5.9
|
%
|
4.7
|
%
|
6.5
|
%
|
5.9
|
%
|
(0.1
|
%)
|
||||||||||||
13
|
Suburban Maryland
|
4,005
|
3.4
|
%
|
1,429
|
94.6
|
%
|
2.2
|
%
|
0.8
|
%
|
2.9
|
%
|
3.0
|
%
|
(0.8
|
%)
|
||||||||||||
14
|
Inland Empire, CA
|
3,081
|
2.7
|
%
|
1,456
|
94.7
|
%
|
2.5
|
%
|
3.3
|
%
|
2.1
|
%
|
2.9
|
%
|
(0.5
|
%)
|
||||||||||||
15
|
Atlanta
|
4,190
|
2.4
|
%
|
1,106
|
96.0
|
%
|
6.2
|
%
|
2.2
|
%
|
9.3
|
%
|
6.4
|
%
|
(0.2
|
%)
|
||||||||||||
16
|
All Other Markets
|
6,053
|
3.4
|
%
|
1,067
|
95.6
|
%
|
5.3
|
%
|
(0.2
|
%)
|
9.5
|
%
|
4.9
|
%
|
0.3
|
%
|
||||||||||||
Total
|
105,604
|
100.0
|
%
|
$
|
1,626
|
95.2
|
%
|
5.5
|
%
|
2.0
|
%
|
7.5
|
%
|
5.7
|
%
|
(0.2
|
%)
|
||||||||||||
(1)
|
Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment units for the period.
|
Equity Residential
|
|||||||||||||||||||||||||||||
Second Quarter 2012 vs. First Quarter 2012
|
|||||||||||||||||||||||||||||
Same Store Results/Statistics by Market
|
|||||||||||||||||||||||||||||
Increase (Decrease) from Prior Quarter
|
|||||||||||||||||||||||||||||
Markets
|
Apartment
Units
|
Q2 2012
% of
Actual
NOI
|
Q2 2012
Average
Rental
Rate (1)
|
Q2 2012
Weighted
Average
Occupancy %
|
Revenues
|
Expenses
|
NOI
|
Average
Rental
Rate (1)
|
Occupancy
|
||||||||||||||||||||
1
|
New York Metro Area
|
7,536
|
12.3
|
%
|
$
|
3,247
|
96.3
|
%
|
2.1
|
%
|
(5.3
|
%)
|
7.6
|
%
|
1.1
|
%
|
0.9
|
%
|
|||||||||||
2
|
DC Northern Virginia
|
9,381
|
11.6
|
%
|
2,113
|
95.9
|
%
|
3.6
|
%
|
(4.4
|
%)
|
7.5
|
%
|
2.3
|
%
|
1.2
|
%
|
||||||||||||
3
|
Los Angeles
|
9,614
|
9.8
|
%
|
1,827
|
94.7
|
%
|
1.2
|
%
|
(2.5
|
%)
|
3.0
|
%
|
1.6
|
%
|
(0.3
|
%)
|
||||||||||||
4
|
South Florida
|
12,990
|
9.6
|
%
|
1,433
|
94.9
|
%
|
1.6
|
%
|
(0.1
|
%)
|
2.6
|
%
|
1.6
|
%
|
(0.1
|
%)
|
||||||||||||
5
|
Boston
|
5,832
|
8.2
|
%
|
2,515
|
95.4
|
%
|
2.6
|
%
|
(2.0
|
%)
|
5.0
|
%
|
1.6
|
%
|
0.9
|
%
|
||||||||||||
6
|
San Francisco Bay Area
|
8,533
|
7.9
|
%
|
1,758
|
95.2
|
%
|
3.8
|
%
|
(3.5
|
%)
|
8.4
|
%
|
2.5
|
%
|
1.1
|
%
|
||||||||||||
7
|
Seattle/Tacoma
|
9,582
|
7.2
|
%
|
1,441
|
94.0
|
%
|
2.2
|
%
|
(2.1
|
%)
|
4.8
|
%
|
2.6
|
%
|
(0.4
|
%)
|
||||||||||||
8
|
Denver
|
7,970
|
5.4
|
%
|
1,176
|
95.4
|
%
|
3.1
|
%
|
2.2
|
%
|
3.5
|
%
|
3.1
|
%
|
0.1
|
%
|
||||||||||||
9
|
San Diego
|
4,963
|
4.9
|
%
|
1,794
|
94.8
|
%
|
2.4
|
%
|
1.6
|
%
|
2.8
|
%
|
1.2
|
%
|
1.1
|
%
|
||||||||||||
10
|
Phoenix
|
8,431
|
4.3
|
%
|
946
|
94.9
|
%
|
1.0
|
%
|
(2.1
|
%)
|
2.9
|
%
|
1.2
|
%
|
(0.2
|
%)
|
||||||||||||
11
|
Suburban Maryland
|
4,584
|
3.9
|
%
|
1,520
|
94.6
|
%
|
2.1
|
%
|
(0.6
|
%)
|
3.4
|
%
|
1.7
|
%
|
0.3
|
%
|
||||||||||||
12
|
Orlando
|
7,013
|
3.8
|
%
|
1,055
|
95.0
|
%
|
2.4
|
%
|
0.1
|
%
|
4.0
|
%
|
2.6
|
%
|
(0.2
|
%)
|
||||||||||||
13
|
Orange County, CA
|
3,490
|
3.3
|
%
|
1,632
|
95.4
|
%
|
2.5
|
%
|
0.9
|
%
|
3.2
|
%
|
2.1
|
%
|
0.3
|
%
|
||||||||||||
14
|
Inland Empire, CA
|
3,081
|
2.5
|
%
|
1,456
|
94.7
|
%
|
1.1
|
%
|
(1.6
|
%)
|
2.4
|
%
|
0.3
|
%
|
0.7
|
%
|
||||||||||||
15
|
Atlanta
|
4,190
|
2.2
|
%
|
1,106
|
96.0
|
%
|
3.0
|
%
|
6.5
|
%
|
0.6
|
%
|
2.5
|
%
|
0.4
|
%
|
||||||||||||
16
|
All Other Markets
|
6,053
|
3.1
|
%
|
1,067
|
95.6
|
%
|
2.9
|
%
|
(5.2
|
%)
|
9.6
|
%
|
1.8
|
%
|
1.0
|
%
|
||||||||||||
Total
|
113,243
|
100.0
|
%
|
$
|
1,643
|
95.1
|
%
|
2.4
|
%
|
(2.1
|
%)
|
4.9
|
%
|
2.0
|
%
|
0.3
|
%
|
||||||||||||
(1)
|
Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment units for the period.
|
Equity Residential
|
||||||||||||||||||||||||||||
June YTD 2012 vs. June YTD 2011
|
||||||||||||||||||||||||||||
Same Store Results/Statistics by Market
|
||||||||||||||||||||||||||||
Increase (Decrease) from Prior Year
|
||||||||||||||||||||||||||||
Markets
|
Apartment
Units
|
June YTD 12
% of
Actual
NOI
|
June YTD 12
Average
Rental
Rate (1)
|
June YTD 12
Weighted
Average
Occupancy %
|
Revenues
|
Expenses
|
NOI
|
Average
Rental
Rate (1)
|
Occupancy
|
|||||||||||||||||||
1
|
New York Metro Area
|
7,063
|
12.8
|
%
|
$ 3,278
|
95.8
|
%
|
6.5
|
%
|
3.5
|
%
|
8.7
|
%
|
6.5
|
%
|
(0.1
|
%)
|
|||||||||||
2
|
DC Northern Virginia
|
7,974
|
10.5
|
%
|
2,043
|
95.3
|
%
|
4.7
|
%
|
4.8
|
%
|
4.7
|
%
|
5.1
|
%
|
(0.4
|
%)
|
|||||||||||
3
|
South Florida
|
12,114
|
9.7
|
%
|
1,385
|
95.1
|
%
|
4.3
|
%
|
3.1
|
%
|
4.9
|
%
|
3.7
|
%
|
0.4
|
%
|
|||||||||||
4
|
Los Angeles
|
7,832
|
8.7
|
%
|
1,774
|
94.8
|
%
|
4.0
|
%
|
(2.5
|
%)
|
7.5
|
%
|
3.7
|
%
|
0.2
|
%
|
|||||||||||
5
|
Boston
|
5,175
|
8.2
|
%
|
2,532
|
95.2
|
%
|
6.7
|
%
|
(1.2
|
%)
|
11.1
|
%
|
7.0
|
%
|
(0.3
|
%)
|
|||||||||||
6
|
San Francisco Bay Area
|
6,194
|
7.5
|
%
|
1,936
|
95.3
|
%
|
11.2
|
%
|
3.9
|
%
|
15.1
|
%
|
11.6
|
%
|
(0.4
|
%)
|
|||||||||||
7
|
Seattle/Tacoma
|
9,081
|
7.4
|
%
|
1,418
|
94.1
|
%
|
5.3
|
%
|
3.4
|
%
|
6.5
|
%
|
5.4
|
%
|
(0.2
|
%)
|
|||||||||||
8
|
Denver
|
7,970
|
6.0
|
%
|
1,159
|
95.3
|
%
|
9.3
|
%
|
2.8
|
%
|
12.4
|
%
|
9.1
|
%
|
0.1
|
%
|
|||||||||||
9
|
Phoenix
|
8,431
|
4.7
|
%
|
941
|
95.0
|
%
|
4.3
|
%
|
(3.5
|
%)
|
9.3
|
%
|
4.7
|
%
|
(0.4
|
%)
|
|||||||||||
10
|
San Diego
|
4,284
|
4.6
|
%
|
1,727
|
94.6
|
%
|
2.3
|
%
|
1.3
|
%
|
2.8
|
%
|
2.7
|
%
|
(0.4
|
%)
|
|||||||||||
11
|
Orlando
|
7,013
|
4.1
|
%
|
1,042
|
95.1
|
%
|
3.9
|
%
|
3.5
|
%
|
4.2
|
%
|
3.9
|
%
|
0.0
|
%
|
|||||||||||
12
|
Orange County, CA
|
3,490
|
3.6
|
%
|
1,615
|
95.3
|
%
|
5.1
|
%
|
4.5
|
%
|
5.5
|
%
|
5.2
|
%
|
(0.1
|
%)
|
|||||||||||
13
|
Suburban Maryland
|
4,005
|
3.5
|
%
|
1,416
|
94.4
|
%
|
2.4
|
%
|
(0.3
|
%)
|
3.7
|
%
|
2.8
|
%
|
(0.5
|
%)
|
|||||||||||
14
|
Inland Empire, CA
|
3,081
|
2.8
|
%
|
1,454
|
94.4
|
%
|
2.5
|
%
|
2.7
|
%
|
2.4
|
%
|
3.2
|
%
|
(0.6
|
%)
|
|||||||||||
15
|
Atlanta
|
4,190
|
2.5
|
%
|
1,093
|
95.8
|
%
|
5.8
|
%
|
1.5
|
%
|
9.1
|
%
|
6.1
|
%
|
(0.2
|
%)
|
|||||||||||
16
|
All Other Markets
|
6,053
|
3.4
|
%
|
1,058
|
95.1
|
%
|
4.7
|
%
|
0.4
|
%
|
8.2
|
%
|
4.6
|
%
|
0.0
|
%
|
|||||||||||
Total
|
103,950
|
100.0
|
%
|
$ 1,605
|
95.1
|
%
|
5.5
|
%
|
1.9
|
%
|
7.5
|
%
|
5.6
|
%
|
(0.1
|
%)
|
||||||||||||
(1
|
)
|
Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment units for the period.
|
Equity Residential
|
|||||||||||||||||||
Second Quarter 2012 vs. Second Quarter 2011
|
|||||||||||||||||||
Same Store Operating Expenses
|
|||||||||||||||||||
$ in thousands - 105,604 Same Store Apartment Units
|
|||||||||||||||||||
Actual
Q2 2012
|
Actual
Q2 2011
|
$
Change
|
%
Change
|
% of Actual
Q2 2012
Operating
Expenses
|
|||||||||||||||
Real estate taxes
|
$
|
51,110
|
$
|
48,219
|
$
|
2,891
|
6.0
|
%
|
30.0
|
%
|
|||||||||
On-site payroll (1)
|
38,804
|
38,371
|
433
|
1.1
|
%
|
22.8
|
%
|
||||||||||||
Utilities (2)
|
25,049
|
24,761
|
288
|
1.2
|
%
|
14.7
|
%
|
||||||||||||
Repairs and maintenance (3)
|
24,081
|
23,975
|
106
|
0.4
|
%
|
14.2
|
%
|
||||||||||||
Property management costs (4)
|
18,370
|
18,573
|
(203
|
)
|
(1.1
|
%)
|
10.8
|
%
|
|||||||||||
Insurance
|
5,528
|
5,137
|
391
|
7.6
|
%
|
3.2
|
%
|
||||||||||||
Leasing and advertising
|
2,877
|
3,092
|
(215
|
)
|
(7.0
|
%)
|
1.7
|
%
|
|||||||||||
Other on-site operating expenses (5)
|
4,390
|
4,734
|
(344
|
)
|
(7.3
|
%)
|
2.6
|
%
|
|||||||||||
Same store operating expenses
|
$
|
170,209
|
$
|
166,862
|
$
|
3,347
|
2.0
|
%
|
100.0
|
%
|
|||||||||
June YTD 2012 vs. June YTD 2011
|
|||||||||||||||||||
Same Store Operating Expenses
|
|||||||||||||||||||
$ in thousands - 103,950 Same Store Apartment Units
|
|||||||||||||||||||
Actual
YTD 2012
|
Actual
YTD 2011
|
$
Change
|
%
Change
|
% of Actual
YTD 2012
Operating
Expenses
|
|||||||||||||||
Real estate taxes
|
$
|
100,173
|
$
|
94,906
|
$
|
5,267
|
5.5
|
%
|
29.6
|
%
|
|||||||||
On-site payroll (1)
|
77,526
|
76,323
|
1,203
|
1.6
|
%
|
22.9
|
%
|
||||||||||||
Utilities (2)
|
51,263
|
52,307
|
(1,044
|
)
|
(2.0
|
%)
|
15.2
|
%
|
|||||||||||
Repairs and maintenance (3)
|
46,468
|
45,902
|
566
|
1.2
|
%
|
13.7
|
%
|
||||||||||||
Property management costs (4)
|
36,119
|
36,047
|
72
|
0.2
|
%
|
10.7
|
%
|
||||||||||||
Insurance
|
10,768
|
10,062
|
706
|
7.0
|
%
|
3.2
|
%
|
||||||||||||
Leasing and advertising
|
5,492
|
6,307
|
(815
|
)
|
(12.9
|
%)
|
1.6
|
%
|
|||||||||||
Other on-site operating expenses (5)
|
10,571
|
10,071
|
500
|
5.0
|
%
|
3.1
|
%
|
||||||||||||
Same store operating expenses
|
$
|
338,380
|
$
|
331,925
|
$
|
6,455
|
1.9
|
%
|
100.0
|
%
|
|||||||||
(1)
|
On-site payroll - Includes payroll and related expenses for on-site personnel including property managers, leasing consultants and maintenance staff.
|
||||||||||||||||||
(2)
|
Utilities - Represents gross expenses prior to any recoveries under the Resident Utility Billing System ("RUBS"). Recoveries are reflected in rental income.
|
||||||||||||||||||
(3)
|
Repairs and maintenance - Includes general maintenance costs, apartment unit turnover costs including interior painting, routine landscaping, security, exterminating, fire protection, snow removal, elevator, roof and parking lot repairs and other miscellaneous building repair costs.
|
||||||||||||||||||
(4)
|
Property management costs - Includes payroll and related expenses for departments, or portions of departments, that directly support on-site management. These include such departments as regional and corporate property management, property accounting, human resources, training, marketing and revenue management, procurement, real estate tax, property legal services and information technology.
|
||||||||||||||||||
(5)
|
Other on-site operating expenses - Includes administrative costs such as office supplies, telephone and data charges and association and business licensing fees.
|
Equity Residential
|
||||||||||||||||||||
Debt Summary as of June 30, 2012
|
||||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||||
Amount (1)
|
% of Total
|
Weighted
Average
Rates (1)
|
Weighted
Average
Maturities
(years)
|
|||||||||||||||||
Secured
|
$
|
4,004,496
|
42.6
|
%
|
4.94
|
%
|
7.4
|
|||||||||||||
Unsecured
|
5,389,768
|
57.4
|
%
|
5.11
|
%
|
4.9
|
||||||||||||||
Total
|
$
|
9,394,264
|
100.0
|
%
|
5.03
|
%
|
5.9
|
|||||||||||||
Fixed Rate Debt:
|
||||||||||||||||||||
Secured - Conventional
|
$
|
3,590,277
|
38.2
|
%
|
5.51
|
%
|
6.5
|
|||||||||||||
Unsecured - Public/Private
|
4,550,459
|
48.4
|
%
|
5.70
|
%
|
5.7
|
||||||||||||||
Fixed Rate Debt
|
8,140,736
|
86.6
|
%
|
5.62
|
%
|
6.0
|
||||||||||||||
Floating Rate Debt:
|
||||||||||||||||||||
Secured - Conventional
|
63,714
|
0.7
|
%
|
3.33
|
%
|
1.0
|
||||||||||||||
Secured - Tax Exempt
|
350,505
|
3.7
|
%
|
0.23
|
%
|
18.1
|
||||||||||||||
Unsecured - Public/Private
|
804,309
|
8.6
|
%
|
1.67
|
%
|
0.4
|
||||||||||||||
Unsecured - Revolving Credit Facility
|
35,000
|
0.4
|
%
|
1.35
|
%
|
2.0
|
||||||||||||||
Floating Rate Debt
|
1,253,528
|
13.4
|
%
|
1.29
|
%
|
5.1
|
||||||||||||||
Total
|
$
|
9,394,264
|
100.0
|
%
|
5.03
|
%
|
5.9
|
|||||||||||||
(1) Net of the effect of any derivative instruments. Weighted average rates are for the six months ended June 30, 2012.
|
||||||||||||||||||||
Note: The Company capitalized interest of approximately $10.1 million and $3.7 million during the six months ended June 30, 2012 and 2011, respectively. The Company capitalized interest of approximately $5.1 million and $2.0 million during the quarters ended June 30, 2012 and 2011, respectively.
|
||||||||||||||||||||
Debt Maturity Schedule as of June 30, 2012
|
||||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||||
Year
|
Fixed
Rate (1)
|
Floating
Rate (1)
|
Total
|
% of Total
|
Weighted
Average Rates
on Fixed
Rate Debt (1)
|
Weighted
Average
Rates on
Total Debt (1)
|
||||||||||||||
2012
|
$
|
276,867
|
$
|
533,198
|
(2)
|
$
|
810,065
|
8.6
|
%
|
5.52
|
%
|
2.50
|
%
|
|||||||
2013
|
267,283
|
304,819
|
572,102
|
6.1
|
%
|
6.69
|
%
|
4.85
|
%
|
|||||||||||
2014
|
563,844
|
57,021
|
(3)
|
620,865
|
6.6
|
%
|
5.31
|
%
|
5.02
|
%
|
||||||||||
2015
|
417,330
|
-
|
417,330
|
4.4
|
%
|
6.30
|
%
|
6.30
|
%
|
|||||||||||
2016
|
1,190,036
|
-
|
1,190,036
|
12.7
|
%
|
5.34
|
%
|
5.34
|
%
|
|||||||||||
2017
|
1,445,589
|
456
|
1,446,045
|
15.4
|
%
|
5.95
|
%
|
5.95
|
%
|
|||||||||||
2018
|
80,887
|
724
|
81,611
|
0.9
|
%
|
5.71
|
%
|
5.71
|
%
|
|||||||||||
2019
|
802,044
|
20,766
|
822,810
|
8.8
|
%
|
5.49
|
%
|
5.36
|
%
|
|||||||||||
2020
|
1,671,868
|
809
|
1,672,677
|
17.8
|
%
|
5.50
|
%
|
5.50
|
%
|
|||||||||||
2021
|
1,165,475
|
856
|
1,166,331
|
12.4
|
%
|
4.64
|
%
|
4.64
|
%
|
|||||||||||
2022+
|
233,861
|
338,604
|
572,465
|
6.1
|
%
|
6.75
|
%
|
3.33
|
%
|
|||||||||||
Premium/(Discount)
|
25,652
|
(3,725
|
)
|
21,927
|
0.2
|
%
|
N/A
|
N/A
|
||||||||||||
Total
|
$
|
8,140,736
|
$
|
1,253,528
|
$
|
9,394,264
|
100.0
|
%
|
5.54
|
%
|
5.00
|
%
|
||||||||
(1) Net of the effect of any derivative instruments. Weighted average rates are as of June 30, 2012.
|
||||||||||||||||||||
(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) Includes $35.0 million outstanding on the Company's unsecured revolving credit facility. As of June 30, 2012, there was approximately $1.68 billion available on this facility. |
Equity Residential
|
||||||||||||||||||
Unsecured Debt Summary as of June 30, 2012
|
||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||
Coupon
Rate
|
Due
Date
|
Face
Amount
|
Unamortized
Premium/
(Discount)
|
Net
Balance
|
||||||||||||||
Fixed Rate Notes:
|
||||||||||||||||||
5.500%
|
10/01/12
|
$
|
222,133
|
$ |
(55
|
)
|
$
|
222,078
|
||||||||||
5.200%
|
04/01/13
|
(1)
|
400,000
|
(89
|
)
|
399,911
|
||||||||||||
Fair Value Derivative Adjustments
|
(1)
|
(300,000
|
)
|
-
|
(300,000
|
)
|
||||||||||||
5.250%
|
09/15/14
|
500,000
|
(136
|
)
|
499,864
|
|||||||||||||
6.584%
|
04/13/15
|
300,000
|
(303
|
)
|
299,697
|
|||||||||||||
5.125%
|
03/15/16
|
500,000
|
(197
|
)
|
499,803
|
|||||||||||||
5.375%
|
08/01/16
|
400,000
|
(758
|
)
|
399,242
|
|||||||||||||
5.750%
|
06/15/17
|
650,000
|
(2,543
|
)
|
647,457
|
|||||||||||||
7.125%
|
10/15/17
|
150,000
|
(343
|
)
|
149,657
|
|||||||||||||
4.750%
|
07/15/20
|
600,000
|
(3,662
|
)
|
596,338
|
|||||||||||||
4.625%
|
12/15/21
|
1,000,000
|
(3,588
|
)
|
996,412
|
|||||||||||||
7.570%
|
08/15/26
|
140,000
|
-
|
140,000
|
||||||||||||||
4,562,133
|
(11,674
|
)
|
4,550,459
|
|||||||||||||||
Floating Rate Notes:
|
||||||||||||||||||
04/01/13
|
(1)
|
300,000
|
-
|
300,000
|
||||||||||||||
Fair Value Derivative Adjustments
|
(1)
|
4,309
|
-
|
4,309
|
||||||||||||||
Term Loan Facility
|
LIBOR+0.50%
|
10/05/12
|
(2)(3)
|
500,000
|
-
|
500,000
|
||||||||||||
804,309
|
-
|
804,309
|
||||||||||||||||
Revolving Credit Facility:
|
LIBOR+1.15%
|
07/13/14
|
(2)(4)
|
35,000
|
-
|
35,000
|
||||||||||||
Total Unsecured Debt
|
$
|
5,401,442
|
$ |
(11,674
|
)
|
$
|
5,389,768
|
|||||||||||
(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.
|
|
(4)
|
As of June 30, 2012, there was approximately $1.68 billion available on the Company's unsecured revolving credit facility.
|
Equity Residential
|
||||
Selected Unsecured Public Debt Covenants
|
||||
June 30,
|
March 31,
|
|||
2012
|
2012
|
|||
Total Debt to Adjusted Total Assets (not to exceed 60%)
|
43.8%
|
44.6%
|
||
Secured Debt to Adjusted Total Assets (not to exceed 40%)
|
18.7%
|
19.2%
|
||
Consolidated Income Available for Debt Service to
|
||||
Maximum Annual Service Charges
|
||||
(must be at least 1.5 to 1)
|
2.85
|
2.76
|
||
Total Unsecured Assets to Unsecured Debt
|
280.0%
|
273.5%
|
||
(must be at least 150%)
|
||||
Equity Residential
|
||||||||||||||||||
Capital Structure as of June 30, 2012
|
||||||||||||||||||
(Amounts in thousands except for share/unit and per share amounts)
|
||||||||||||||||||
Secured Debt
|
$
|
4,004,496
|
42.6 %
|
|||||||||||||||
Unsecured Debt
|
5,389,768
|
57.4 %
|
||||||||||||||||
Total Debt
|
9,394,264
|
100.0 %
|
32.1 %
|
|||||||||||||||
Common Shares (includes Restricted Shares)
|
300,961,645
|
95.4 %
|
||||||||||||||||
Units (includes OP Units and LTIP Units)
|
14,508,752
|
4.6 %
|
||||||||||||||||
Total Shares and Units
|
315,470,397
|
100.0 %
|
||||||||||||||||
Common Share Price at June 30, 2012
|
$
|
62.36
|
||||||||||||||||
19,672,734
|
99.0 %
|
|||||||||||||||||
Perpetual Preferred Equity (see below)
|
200,000
|
1.0 %
|
||||||||||||||||
Total Equity
|
19,872,734
|
100.0 %
|
67.9 %
|
|||||||||||||||
Total Market Capitalization
|
$
|
29,266,998
|
100.0 %
|
|||||||||||||||
Perpetual Preferred Equity as of June 30, 2012
|
||||||||||||||||||
(Amounts in thousands except for share and per share amounts)
|
||||||||||||||||||
Series
|
Redemption
Date
|
Outstanding
Shares
|
Liquidation
Value
|
Annual
Dividend
Per Share
|
Annual
Dividend
Amount
|
Weighted
Average
Rate
|
||||||||||||
Preferred Shares:
|
||||||||||||||||||
8.29% Series K
|
12/10/26
|
1,000,000
|
$
|
50,000
|
$
|
4.145
|
$
|
4,145
|
||||||||||
6.48% Series N(1)
|
6/19/08
|
600,000
|
150,000
|
16.20
|
9,720
|
|||||||||||||
Total Perpetual Preferred Equity
|
1,600,000
|
$
|
200,000
|
$
|
13,865
|
6.93 %
|
||||||||||||
(1) The Series N Preferred Shares have been called for redemption effective August 20, 2012.
|
Equity Residential
|
||||||||||
Common Share and Unit
|
||||||||||
Weighted Average Amounts Outstanding
|
||||||||||
YTD Q212
|
YTD Q211
|
Q212
|
Q211
|
|||||||
Weighted Average Amounts Outstanding for Net Income Purposes:
|
||||||||||
Common Shares - basic
|
299,499,337
|
293,783,729
|
300,193,311
|
294,662,571
|
||||||
Shares issuable from assumed conversion/vesting of (1):
|
||||||||||
- OP Units
|
13,633,531
|
-
|
14,061,763
|
13,291,204
|
||||||
- long-term compensation shares/units
|
3,324,096
|
-
|
3,392,527
|
4,245,599
|
||||||
Total Common Shares and Units - diluted (1)
|
316,456,964
|
293,783,729
|
317,647,601
|
312,199,374
|
||||||
Weighted Average Amounts Outstanding for FFO and Normalized
FFO Purposes:
|
||||||||||
Common Shares - basic
|
299,499,337
|
293,783,729
|
300,193,311
|
294,662,571
|
||||||
OP Units - basic
|
13,633,531
|
13,322,096
|
14,061,763
|
13,291,204
|
||||||
Total Common Shares and OP Units - basic
|
313,132,868
|
307,105,825
|
314,255,074
|
307,953,775
|
||||||
Shares issuable from assumed conversion/vesting of:
|
||||||||||
- long-term compensation shares/units
|
3,324,096
|
4,274,215
|
3,392,527
|
4,245,599
|
||||||
Total Common Shares and Units - diluted
|
316,456,964
|
311,380,040
|
317,647,601
|
312,199,374
|
||||||
Period Ending Amounts Outstanding:
|
||||||||||
Common Shares (includes Restricted Shares)
|
300,961,645
|
296,280,085
|
||||||||
Units (includes OP Units and LTIP Units)
|
14,508,752
|
13,488,276
|
||||||||
Total Shares and Units
|
315,470,397
|
309,768,361
|
||||||||
(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 six months ended June 30, 2011.
|
Equity Residential
|
|||||||||||||||||||
Partially Owned Entities as of June 30, 2012
|
|||||||||||||||||||
(Amounts in thousands except for project and apartment unit amounts)
|
|||||||||||||||||||
Consolidated
|
Unconsolidated
|
||||||||||||||||||
Development Projects
|
|||||||||||||||||||
Held for
and/or Under
Development
|
Completed
and Stabilized
|
Other
|
Total
|
Institutional Joint
Ventures (4)
|
|||||||||||||||
Total projects (1)
|
-
|
2
|
19
|
21
|
-
|
||||||||||||||
Total apartment units (1)
|
-
|
441
|
3,475
|
3,916
|
-
|
||||||||||||||
Operating information for the six months ended 6/30/12 (at 100%):
|
|||||||||||||||||||
Operating revenue
|
$
|
-
|
$
|
4,733
|
$
|
30,467
|
$
|
35,200
|
$
|
-
|
|||||||||
Operating expenses
|
75
|
1,358
|
9,711
|
11,144
|
-
|
||||||||||||||
Net operating (loss) income
|
(75
|
)
|
3,375
|
20,756
|
24,056
|
-
|
|||||||||||||
Depreciation
|
-
|
2,085
|
7,683
|
9,768
|
-
|
||||||||||||||
General and administrative/other
|
42
|
3
|
30
|
75
|
-
|
||||||||||||||
Operating (loss) income
|
(117
|
)
|
1,287
|
13,043
|
14,213
|
-
|
|||||||||||||
Interest and other income
|
1
|
2
|
-
|
3
|
-
|
||||||||||||||
Other expenses
|
(126
|
)
|
-
|
-
|
(126
|
)
|
-
|
||||||||||||
Interest:
|
|||||||||||||||||||
Expense incurred, net
|
-
|
(671
|
)
|
(4,694
|
)
|
(5,365
|
)
|
-
|
|||||||||||
Amortization of deferred financing costs
|
-
|
(135
|
)
|
(89
|
)
|
(224
|
)
|
-
|
|||||||||||
(Loss) income before income and other taxes
|
(242
|
)
|
483
|
8,260
|
8,501
|
-
|
|||||||||||||
Income and other tax (expense) benefit
|
(25
|
)
|
-
|
(21
|
)
|
(46
|
)
|
-
|
|||||||||||
Net (loss) income
|
$
|
(267
|
)
|
$
|
483
|
$
|
8,239
|
$
|
8,455
|
$
|
-
|
||||||||
Debt - Secured (2):
|
|||||||||||||||||||
EQR Ownership (3)
|
$
|
-
|
$
|
32,950
|
$
|
159,068
|
$
|
192,018
|
$
|
2,594
|
|||||||||
Noncontrolling Ownership
|
-
|
-
|
41,269
|
41,269
|
10,374
|
||||||||||||||
Total (at 100%)
|
$
|
-
|
$
|
32,950
|
$
|
200,337
|
$
|
233,287
|
$
|
12,968
|
|||||||||
(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.
|
|
(4)
|
These development projects (Nexus Sawgrass and Domain) are owned 20% by the Company and 80% by an institutional partner in two separate unconsolidated joint ventures. 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. See page 21 for further discussion.
|
Equity Residential
|
|||||||||||||||||||||||||||||||||
Development and Lease-Up Projects as of June 30, 2012
|
|||||||||||||||||||||||||||||||||
(Amounts in thousands except for project and apartment unit amounts)
|
|||||||||||||||||||||||||||||||||
Projects
|
Location
|
No. of
Apartment
Units
|
Total
Capital
Cost (1)
|
Total
Book Value
to Date
|
Total Book
Value Not
Placed in
Service
|
Total
Debt
|
Percentage
Completed
|
Percentage
Leased
|
Percentage
Occupied
|
Estimated
Completion
Date
|
Estimated
Stabilization
Date
|
||||||||||||||||||||||
Consolidated
|
|||||||||||||||||||||||||||||||||
Projects Under Development - Wholly Owned:
|
|||||||||||||||||||||||||||||||||
2201 Pershing Drive
|
Arlington, VA
|
188
|
$
|
64,242
|
$
|
45,126
|
$
|
45,126
|
$
|
-
|
83
|
%
|
25
|
%
|
-
|
Q3 2012
|
Q3 2013
|
||||||||||||||||
Jia (formerly Chinatown Gateway)
|
Los Angeles, CA
|
280
|
92,920
|
42,562
|
42,562
|
-
|
25
|
%
|
-
|
-
|
Q3 2013
|
Q2 2015
|
|||||||||||||||||||||
Westgate Block 2
|
Pasadena, CA
|
252
|
125,293
|
49,983
|
49,983
|
-
|
9
|
%
|
-
|
-
|
Q1 2014
|
Q1 2015
|
|||||||||||||||||||||
The Madison
|
Alexandria, VA
|
360
|
115,072
|
35,416
|
35,416
|
-
|
9
|
%
|
-
|
-
|
Q1 2014
|
Q2 2015
|
|||||||||||||||||||||
Market Street Landing
|
Seattle, WA
|
287
|
90,024
|
25,825
|
25,825
|
-
|
17
|
%
|
-
|
-
|
Q1 2014
|
Q3 2015
|
|||||||||||||||||||||
Projects Under Development - Wholly Owned
|
1,367
|
487,551
|
198,912
|
198,912
|
-
|
||||||||||||||||||||||||||||
Projects Under Development
|
1,367
|
487,551
|
198,912
|
198,912
|
-
|
||||||||||||||||||||||||||||
Completed Not Stabilized - Wholly Owned (2):
|
|||||||||||||||||||||||||||||||||
88 Hillside (3)
|
Daly City, CA
|
95
|
39,374
|
39,374
|
-
|
-
|
98
|
%
|
98
|
%
|
Completed
|
Q3 2012
|
|||||||||||||||||||||
Ten23 (formerly 500 West 23rd Street) (4)
|
New York, NY
|
111
|
55,555
|
54,843
|
-
|
-
|
83
|
%
|
77
|
%
|
Completed
|
Q4 2012
|
|||||||||||||||||||||
The Savoy at Dayton Station III (formerly Savoy III)
|
Aurora, CO
|
168
|
23,856
|
21,070
|
-
|
-
|
56
|
%
|
52
|
%
|
Completed
|
Q1 2013
|
|||||||||||||||||||||
Projects Completed Not Stabilized - Wholly Owned
|
374
|
118,785
|
115,287
|
-
|
-
|
||||||||||||||||||||||||||||
Projects Completed Not Stabilized
|
374
|
118,785
|
115,287
|
-
|
-
|
||||||||||||||||||||||||||||
Total Consolidated Projects
|
1,741
|
$
|
606,336
|
$
|
314,199
|
$
|
198,912
|
$
|
-
|
||||||||||||||||||||||||
Land Held for Development (5)
|
N/A
|
N/A
|
$
|
372,108
|
$
|
372,108
|
$
|
-
|
|||||||||||||||||||||||||
Unconsolidated
|
|||||||||||||||||||||||||||||||||
Projects Under Development - Unconsolidated:
|
|||||||||||||||||||||||||||||||||
Nexus Sawgrass (formerly Sunrise Village) (6)
|
Sunrise, FL
|
501
|
$
|
78,212
|
$
|
38,376
|
$
|
38,376
|
$
|
7,851
|
42
|
%
|
1
|
%
|
-
|
Q3 2013
|
Q3 2014
|
||||||||||||||||
Domain (6)
|
San Jose, CA
|
444
|
154,570
|
65,340
|
65,340
|
5,117
|
35
|
%
|
-
|
-
|
Q4 2013
|
Q4 2015
|
|||||||||||||||||||||
Projects Under Development - Unconsolidated
|
945
|
232,782
|
103,716
|
103,716
|
12,968
|
||||||||||||||||||||||||||||
Projects Under Development
|
945
|
232,782
|
103,716
|
103,716
|
12,968
|
||||||||||||||||||||||||||||
Total Unconsolidated Projects
|
945
|
$
|
232,782
|
$
|
103,716
|
$
|
103,716
|
$
|
12,968
|
||||||||||||||||||||||||
NOI CONTRIBUTION FROM CONSOLIDATED DEVELOPMENT PROJECTS
|
Total Capital
Cost (1)
|
Q2 2012
NOI
|
|||||||||||||||||||||||||||||||
Projects Under Development
|
$
|
487,551
|
$
|
(34
|
)
|
||||||||||||||||||||||||||||
Completed Not Stabilized
|
118,785
|
278
|
|||||||||||||||||||||||||||||||
Total Consolidated Development NOI Contribution
|
$
|
606,336
|
$
|
244
|
|||||||||||||||||||||||||||||
(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 this project prior to stabilization and is completing lease-up activities.
|
||||||||||||||||||||||||||||||||
(4)
|
Ten23 - The land under this development is subject to a long term ground lease.
|
||||||||||||||||||||||||||||||||
(5)
|
Includes $59.7 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 but currently has no further funding obligations.
|
Equity Residential
|
||||||||||||||||||||||||||||||||||||||||||||||
Repairs and Maintenance Expenses and Capital Expenditures to Real Estate
|
||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in thousands except for apartment unit and per apartment unit amounts)
|
||||||||||||||||||||||||||||||||||||||||||||||
Repairs and Maintenance Expenses
|
Capital Expenditures to Real Estate
|
Total Expenditures
|
||||||||||||||||||||||||||||||||||||||||||||
Total
Apartment
Units (1)
|
Expense (2)
|
Avg. Per
Apartment
Unit
|
Payroll (3)
|
Avg. Per
Apartment
Unit
|
Total
|
Avg. Per
Apartment
Unit
|
Replacements
(4)
|
Avg. Per
Apartment
Unit
|
Building
Improvements
(5)
|
Avg. Per
Apartment
Unit
|
Total
|
Avg. Per
Apartment
Unit
|
Grand
Total
|
Avg. Per
Apartment
Unit
|
||||||||||||||||||||||||||||||||
Same Store Properties (6)
|
103,950
|
$
|
46,468
|
$
|
447
|
$
|
39,052
|
$
|
376
|
$
|
85,520
|
$
|
823
|
$
|
32,501
|
$
|
313
|
$
|
23,856
|
$
|
229
|
$
|
56,357
|
$
|
542(9)
|
$
|
141,877
|
$
|
1,365
|
|||||||||||||||||
Non-Same Store Properties (7)
|
11,466
|
6,150
|
588
|
3,428
|
328
|
9,578
|
916
|
2,940
|
281
|
8,636
|
825
|
11,576
|
1,106
|
21,154
|
2,022
|
|||||||||||||||||||||||||||||||
Other (8)
|
-
|
562
|
1,320
|
1,882
|
288
|
98
|
386
|
2,268
|
||||||||||||||||||||||||||||||||||||||
Total
|
115,416
|
$
|
53,180
|
$
|
43,800
|
$
|
96,980
|
$
|
35,729
|
$
|
32,590
|
$
|
68,319
|
$
|
165,299
|
(1)
|
Total Apartment Units - Excludes 4,939 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 $15.9 million spent during the six months ended June 30, 2012 on apartment unit renovations/rehabs (primarily kitchens and baths) on 2,254 apartment units (equating to about $7,100 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, 2011, less properties subsequently sold.
|
|||||||||||||||||||||||||||||||
(7)
|
Non-Same Store Properties - Primarily includes all properties acquired during 2011 and 2012, plus any properties in lease-up and not stabilized as of January 1, 2011. Per apartment unit amounts are based on a weighted average of 10,463 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)
|
||||||||||||||||
Six Months Ended
|
Quarter Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
REVENUES
|
||||||||||||||||
Rental income
|
$
|
10,131
|
$
|
105,762
|
$
|
3,198
|
$
|
41,757
|
||||||||
Total revenues
|
10,131
|
105,762
|
3,198
|
41,757
|
||||||||||||
EXPENSES (1)
|
||||||||||||||||
Property and maintenance
|
3,197
|
49,951
|
1,376
|
22,471
|
||||||||||||
Real estate taxes and insurance
|
920
|
7,581
|
325
|
2,887
|
||||||||||||
Depreciation
|
2,027
|
19,039
|
660
|
7,115
|
||||||||||||
General and administrative
|
40
|
47
|
36
|
36
|
||||||||||||
Total expenses
|
6,184
|
76,618
|
2,397
|
32,509
|
||||||||||||
Discontinued operating income
|
3,947
|
29,144
|
801
|
9,248
|
||||||||||||
Interest and other income
|
43
|
101
|
18
|
96
|
||||||||||||
Other expenses
|
-
|
-
|
-
|
4
|
||||||||||||
Interest (2):
|
||||||||||||||||
Expense incurred, net
|
(369
|
)
|
(1,209
|
)
|
(288
|
)
|
(605
|
)
|
||||||||
Amortization of deferred financing costs
|
-
|
(647
|
)
|
-
|
(578
|
)
|
||||||||||
Income and other tax (expense) benefit
|
49
|
(62
|
)
|
129
|
(20
|
)
|
||||||||||
Discontinued operations
|
3,670
|
27,327
|
660
|
8,145
|
||||||||||||
Net gain on sales of discontinued operations
|
204,053
|
682,236
|
71,097
|
558,482
|
||||||||||||
Discontinued operations, net
|
$
|
207,723
|
$
|
709,563
|
$
|
71,757
|
$
|
566,627
|
||||||||
(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 Q2 2012
|
||||||||||||||||||||||||
to Actual Q2 2012
|
||||||||||||||||||||||||
Amounts
|
Per Share
|
|||||||||||||||||||||||
Guidance Q2 2012 Normalized FFO - Diluted (2) (3)
|
$
|
213,056
|
$
|
0.670
|
||||||||||||||||||||
Property NOI
|
2,719
|
0.009
|
||||||||||||||||||||||
Other
|
(771
|
)
|
(0.002
|
)
|
||||||||||||||||||||
Actual Q2 2012 Normalized FFO - Diluted (2) (3)
|
$
|
215,004
|
$
|
0.677
|
||||||||||||||||||||
Non-Comparable Items – Adjustments from FFO to Normalized FFO (2) (3)
|
||||||||||||||||||||||||
Six Months Ended June 30,
|
Quarter Ended June 30,
|
|||||||||||||||||||||||
2012
|
2011
|
Variance
|
2012
|
2011
|
Variance
|
|||||||||||||||||||
Impairment
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||
Asset impairment and valuation allowances
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Property acquisition costs (other expenses) (A)
|
7,329
|
3,752
|
3,577
|
5,737
|
3,271
|
2,466
|
||||||||||||||||||
Write-off of pursuit costs (other expenses)
|
3,565
|
3,038
|
527
|
2,531
|
1,355
|
1,176
|
||||||||||||||||||
Property acquisition costs and write-off of pursuit costs (other expenses)
|
10,894
|
6,790
|
4,104
|
8,268
|
4,626
|
3,642
|
||||||||||||||||||
Prepayment premiums/penalties (interest expense)
|
272
|
-
|
272
|
272
|
-
|
272
|
||||||||||||||||||
Write-off of unamortized deferred financing costs (interest expense)
|
1,147
|
2,114
|
(967
|
)
|
1,146
|
1,996
|
(850
|
)
|
||||||||||||||||
Write-off of unamortized (premiums)/discounts/OCI (interest expense)
|
(42
|
)
|
-
|
(42
|
)
|
-
|
-
|
-
|
||||||||||||||||
Non-cash convertible debt discount (interest expense)
|
-
|
3,890
|
(3,890
|
)
|
-
|
1,945
|
(1,945
|
)
|
||||||||||||||||
Unrealized loss due to ineffectiveness of forward starting swaps (interest expense)
|
-
|
2,569
|
(2,569
|
)
|
-
|
2,569
|
(2,569
|
)
|
||||||||||||||||
Debt extinguishment (gains) losses, including prepayment penalties, preferred share redemptions
|
||||||||||||||||||||||||
and non-cash convertible debt discounts
|
1,377
|
8,573
|
(7,196
|
)
|
1,418
|
6,510
|
(5,092
|
)
|
||||||||||||||||
Net (gain) loss on sales of land parcels
|
-
|
(4,217
|
)
|
4,217
|
-
|
(4,217
|
)
|
4,217
|
||||||||||||||||
Net incremental (gain) on sales of condominium units
|
(49
|
)
|
(1,115
|
)
|
1,066
|
-
|
(720
|
)
|
720
|
|||||||||||||||
Income and other tax expense (benefit) - Condo sales
|
(92
|
)
|
26
|
(118
|
)
|
(137
|
)
|
7
|
(144
|
)
|
||||||||||||||
(Gain) on sale of Equity Corporate Housing (ECH), net of severance
|
(350
|
)
|
(223
|
)
|
(127
|
)
|
(350
|
)
|
(223
|
)
|
(127
|
)
|
||||||||||||
(Gains) losses on sales of non-operating assets, net of income and other tax expense (benefit)
|
(491
|
)
|
(5,529
|
)
|
5,038
|
(487
|
)
|
(5,153
|
)
|
4,666
|
||||||||||||||
Insurance/litigation settlement expense (other expenses)
|
4,714
|
-
|
4,714
|
528
|
-
|
528
|
||||||||||||||||||
Prospect Towers garage insurance proceeds (real estate taxes and insurance)
|
(3,467
|
)
|
(1,600
|
)
|
(1,867
|
)
|
-
|
-
|
-
|
|||||||||||||||
Forfeited deposits (interest and other income)
|
-
|
(500
|
)
|
500
|
-
|
-
|
-
|
|||||||||||||||||
Other (other expenses)
|
976
|
-
|
976
|
721
|
-
|
721
|
||||||||||||||||||
Other miscellaneous non-comparable items
|
2,223
|
(2,100
|
)
|
4,323
|
1,249
|
-
|
1,249
|
|||||||||||||||||
Non-comparable items – Adjustments from FFO to Normalized FFO (2) (3)
|
$
|
14,003
|
$
|
7,734
|
$
|
6,269
|
$
|
10,448
|
$
|
5,983
|
$
|
4,465
|
||||||||||||
(A) For the six months and quarter ended June 30, 2012, includes $1.8 million and $0.7 million, respectively, of transaction costs related to the potential Archstone transaction.
|
||||||||||||||||||||||||
Note: See page 26 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)
|
|||||
Q3 2012
|
2012
|
||||
Expected Normalized FFO (2) (3)
|
$0.70 to $0.74
|
$2.73 to $2.78
|
|||
2012 Same Store Assumptions
|
|||||
Physical occupancy
|
95.2 %
|
||||
Revenue change
|
5.4% to 5.6%
|
||||
Expense change
|
1.5% to 2.5%
|
||||
NOI change
|
7.0% to 8.0%
|
||||
(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
|
130 basis points
|
||||
2012 Debt Assumptions (see Note)
|
|||||
Weighted average debt outstanding
|
$9.4 billion to $9.5 billion
|
||||
Weighted average interest rate (reduced for capitalized interest)
|
4.88 %
|
||||
Interest expense
|
$458.0 million to $463.0 million
|
||||
2012 Other Guidance Assumptions (see Note)
|
|||||
General and administrative expense
|
$47.0 million to $48.0 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
|
318.1 million
|
||||
(Note: Guidance assumes no preferred share or debt offerings during 2012)
|
|||||
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 6, 24 and 25
|
||||||||||||||||||
Expected
|
Expected
|
|||||||||||||||||
Expected Q2 2012
|
Q3 2012
|
2012
|
||||||||||||||||
Amounts
|
Per Share
|
Per Share
|
Per Share
|
|||||||||||||||
Expected Earnings - Diluted (5)
|
$
|
74,260
|
$
|
0.234
|
$0.80 to $0.84
|
$2.93 to $2.98
|
||||||||||||
Add: Expected depreciation expense
|
180,519
|
0.568
|
0.56
|
2.25
|
||||||||||||||
Less: Expected net gain on sales (5)
|
(50,323
|
)
|
(0.159
|
)
|
(0.49)
|
(2.08)
|
||||||||||||
Expected FFO - Diluted (1) (3)
|
204,456
|
0.643
|
0.87 to 0.91
|
3.10 to 3.15
|
||||||||||||||
Asset impairment and valuation allowances
|
-
|
-
|
-
|
-
|
||||||||||||||
Property acquisition costs and write-off of pursuit costs (other expenses)
|
6,963
|
0.022
|
0.03
|
0.08
|
||||||||||||||
Debt extinguishment (gains) losses, including prepayment penalties,
|
||||||||||||||||||
preferred share redemptions and non-cash convertible debt discounts
|
1,404
|
0.004
|
0.02
|
0.02
|
||||||||||||||
(Gains) losses on sales of non-operating assets, net of income and other tax
|
||||||||||||||||||
expense (benefit)
|
(347
|
)
|
(0.001
|
)
|
-
|
(0.01)
|
||||||||||||
Other miscellaneous non-comparable items
|
580
|
0.002
|
(0.22)
|
(0.46)
|
||||||||||||||
Expected Normalized FFO - Diluted (2) (3)
|
$
|
213,056
|
$
|
0.670
|
$0.70 to $0.74
|
$2.73 to $2.78
|
||||||||||||
Definitions and Footnotes for Pages 6, 24 and 25
|
||||||||||||||||||
(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 10
|
||||||||||||||||||
The following tables present reconciliations of operating income per the consolidated statements of operations to NOI for the June YTD 2012 and the Second Quarter 2012 Same Store Properties:
|
||||||||||||||||||
Six Months Ended June 30,
|
Quarter Ended June 30,
|
|||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||||
Operating income
|
$
|
310,601
|
$
|
254,771
|
$
|
165,711
|
$
|
139,857
|
||||||||||
Adjustments:
|
||||||||||||||||||
Non-same store operating results
|
(69,848
|
)
|
(17,950
|
)
|
(30,755
|
)
|
(6,827
|
)
|
||||||||||
Fee and asset management revenue
|
(4,276
|
)
|
(3,754
|
)
|
(2,212
|
)
|
(1,948
|
)
|
||||||||||
Fee and asset management expense
|
2,487
|
1,957
|
1,180
|
1,009
|
||||||||||||||
Depreciation
|
346,079
|
311,891
|
172,338
|
154,452
|
||||||||||||||
General and administrative
|
27,082
|
22,341
|
13,394
|
10,908
|
||||||||||||||
Same store NOI
|
$
|
612,125
|
$
|
569,256
|
$
|
319,656
|
$
|
297,451
|
Equity Residential
|
||||||||||||||||
Consolidated Statements of Operations
|
||||||||||||||||
(Amounts in thousands except per share data)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Six Months Ended June 30,
|
Quarter Ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
REVENUES
|
||||||||||||||||
Rental income
|
$ | 1,063,162 | $ | 939,121 | $ | 541,569 | $ | 478,419 | ||||||||
Fee and asset management
|
4,276 | 3,754 | 2,212 | 1,948 | ||||||||||||
Total revenues
|
1,067,438 | 942,875 | 543,781 | 480,367 | ||||||||||||
EXPENSES
|
||||||||||||||||
Property and maintenance
|
218,004 | 202,157 | 107,024 | 98,571 | ||||||||||||
Real estate taxes and insurance
|
118,768 | 106,610 | 63,126 | 54,803 | ||||||||||||
Property management
|
44,417 | 43,148 | 21,008 | 20,767 | ||||||||||||
Fee and asset management
|
2,487 | 1,957 | 1,180 | 1,009 | ||||||||||||
Depreciation
|
346,079 | 311,891 | 172,338 | 154,452 | ||||||||||||
General and administrative
|
27,082 | 22,341 | 13,394 | 10,908 | ||||||||||||
Total expenses
|
756,837 | 688,104 | 378,070 | 340,510 | ||||||||||||
Operating income
|
310,601 | 254,771 | 165,711 | 139,857 | ||||||||||||
Interest and other income
|
431 | 1,288 | 259 | 277 | ||||||||||||
Other expenses
|
(16,584 | ) | (6,790 | ) | (9,517 | ) | (4,630 | ) | ||||||||
Interest:
|
||||||||||||||||
Expense incurred, net
|
(234,247 | ) | (240,443 | ) | (115,618 | ) | (119,997 | ) | ||||||||
Amortization of deferred financing costs
|
(7,037 | ) | (7,401 | ) | (4,063 | ) | (4,396 | ) | ||||||||
Income before income and other taxes, net gain on sales
|
||||||||||||||||
of land parcels and discontinued operations
|
53,164 | 1,425 | 36,772 | 11,111 | ||||||||||||
Income and other tax (expense) benefit
|
(405 | ) | (386 | ) | (214 | ) | (202 | ) | ||||||||
Net gain on sales of land parcels
|
— | 4,217 | — | 4,217 | ||||||||||||
Income from continuing operations
|
52,759 | 5,256 | 36,558 | 15,126 | ||||||||||||
Discontinued operations, net
|
207,723 | 709,563 | 71,757 | 566,627 | ||||||||||||
Net income
|
260,482 | 714,819 | 108,315 | 581,753 | ||||||||||||
Net (income) attributable to Noncontrolling Interests:
|
||||||||||||||||
Operating Partnership
|
(11,150 | ) | (31,533 | ) | (4,732 | ) | (25,758 | ) | ||||||||
Partially Owned Properties
|
(769 | ) | (31 | ) | (319 | ) | (71 | ) | ||||||||
Net income attributable to controlling interests
|
248,563 | 683,255 | 103,264 | 555,924 | ||||||||||||
Preferred distributions
|
(6,933 | ) | (6,933 | ) | (3,467 | ) | (3,467 | ) | ||||||||
Net income available to Common Shares
|
$ | 241,630 | $ | 676,322 | $ | 99,797 | $ | 552,457 | ||||||||
Earnings per share – basic:
|
||||||||||||||||
Income (loss) from continuing operations available to Common
|
||||||||||||||||
Shares
|
$ | 0.14 | $ | (0.01 | ) | $ | 0.10 | $ | 0.04 | |||||||
Net income available to Common Shares
|
$ | 0.81 | $ | 2.30 | $ | 0.33 | $ | 1.88 | ||||||||
Weighted average Common Shares outstanding
|
299,499 | 293,784 | 300,193 | 294,663 | ||||||||||||
Earnings per share – diluted:
|
||||||||||||||||
Income (loss) from continuing operations available to Common
|
||||||||||||||||
Shares
|
$ | 0.14 | $ | (0.01 | ) | $ | 0.10 | $ | 0.04 | |||||||
Net income available to Common Shares
|
$ | 0.80 | $ | 2.30 | $ | 0.33 | $ | 1.85 | ||||||||
Weighted average Common Shares outstanding
|
316,457 | 293,784 | 317,648 | 312,199 | ||||||||||||
Distributions declared per Common Share outstanding
|
$ | 0.6750 | $ | 0.6750 | $ | 0.3375 | $ | 0.3375 |
Equity Residential
|
||||||||||||||||
Consolidated Statements of Funds From Operations and Normalized Funds From Operations
|
||||||||||||||||
(Amounts in thousands except per share data)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Six Months Ended June 30,
|
Quarter Ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net income
|
$ | 260,482 | $ | 714,819 | $ | 108,315 | $ | 581,753 | ||||||||
Adjustments:
|
||||||||||||||||
Net (income) attributable to Noncontrolling Interests –
|
||||||||||||||||
Partially Owned Properties
|
(769 | ) | (31 | ) | (319 | ) | (71 | ) | ||||||||
Depreciation
|
346,079 | 311,891 | 172,338 | 154,452 | ||||||||||||
Depreciation – Non-real estate additions
|
(2,781 | ) | (2,905 | ) | (1,427 | ) | (1,521 | ) | ||||||||
Depreciation – Partially Owned and Unconsolidated Properties
|
(1,597 | ) | (1,505 | ) | (797 | ) | (755 | ) | ||||||||
Discontinued operations:
|
||||||||||||||||
Depreciation
|
2,027 | 18,951 | 660 | 7,081 | ||||||||||||
Net (gain) on sales of discontinued operations
|
(204,053 | ) | (682,236 | ) | (71,097 | ) | (558,482 | ) | ||||||||
Net incremental gain on sales of condominium units
|
49 | 1,115 | — | 720 | ||||||||||||
Gain on sale of Equity Corporate Housing (ECH)
|
350 | 1,024 | 350 | 1,024 | ||||||||||||
FFO (1) (3)
|
399,787 | 361,123 | 208,023 | 184,201 | ||||||||||||
Adjustments:
|
||||||||||||||||
Asset impairment and valuation allowances
|
— | — | — | — | ||||||||||||
Property acquisition costs and write-off of pursuit costs (other
|
||||||||||||||||
expenses)
|
10,894 | 6,790 | 8,268 | 4,626 | ||||||||||||
Debt extinguishment (gains) losses, including prepayment
|
||||||||||||||||
penalties, preferred share redemptions and non-cash
|
||||||||||||||||
convertible debt discounts
|
1,377 | 8,573 | 1,418 | 6,510 | ||||||||||||
(Gains) losses on sales of non-operating assets, net of income and
|
||||||||||||||||
other tax expense (benefit)
|
(491 | ) | (5,529 | ) | (487 | ) | (5,153 | ) | ||||||||
Other miscellaneous non-comparable items
|
2,223 | (2,100 | ) | 1,249 | — | |||||||||||
Normalized FFO (2) (3)
|
$ | 413,790 | $ | 368,857 | $ | 218,471 | $ | 190,184 | ||||||||
FFO (1) (3)
|
$ | 399,787 | $ | 361,123 | $ | 208,023 | $ | 184,201 | ||||||||
Preferred distributions
|
(6,933 | ) | (6,933 | ) | (3,467 | ) | (3,467 | ) | ||||||||
FFO available to Common Shares and Units - basic and diluted (1) (3) (4)
|
$ | 392,854 | $ | 354,190 | $ | 204,556 | $ | 180,734 | ||||||||
Normalized FFO (2) (3)
|
$ | 413,790 | $ | 368,857 | $ | 218,471 | $ | 190,184 | ||||||||
Preferred distributions
|
(6,933 | ) | (6,933 | ) | (3,467 | ) | (3,467 | ) | ||||||||
Normalized FFO available to Common Shares and Units - basic and diluted (2) (3) (4)
|
$ | 406,857 | $ | 361,924 | $ | 215,004 | $ | 186,717 |
(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.
|
Equity Residential
|
||||||||
Consolidated Balance Sheets
|
||||||||
(Amounts in thousands except for share amounts)
|
||||||||
(Unaudited)
|
||||||||
June 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
ASSETS
|
||||||||
Investment in real estate
|
||||||||
Land
|
$ | 4,565,646 | $ | 4,367,816 | ||||
Depreciable property
|
15,886,832 | 15,554,740 | ||||||
Projects under development
|
198,912 | 160,190 | ||||||
Land held for development
|
372,108 | 325,200 | ||||||
Investment in real estate
|
21,023,498 | 20,407,946 | ||||||
Accumulated depreciation
|
(4,777,887 | ) | (4,539,583 | ) | ||||
Investment in real estate, net
|
16,245,611 | 15,868,363 | ||||||
Cash and cash equivalents
|
44,585 | 383,921 | ||||||
Investments in unconsolidated entities
|
17,886 | 12,327 | ||||||
Deposits – restricted
|
193,892 | 152,237 | ||||||
Escrow deposits – mortgage
|
9,139 | 10,692 | ||||||
Deferred financing costs, net
|
41,854 | 44,608 | ||||||
Other assets
|
161,445 | 187,155 | ||||||
Total assets
|
$ | 16,714,412 | $ | 16,659,303 | ||||
LIABILITIES AND EQUITY
|
||||||||
Liabilities:
|
||||||||
Mortgage notes payable
|
4,004,496 | 4,111,487 | ||||||
Notes, net
|
5,354,768 | 5,609,574 | ||||||
Lines of credit
|
35,000 | - | ||||||
Accounts payable and accrued expenses
|
72,647 | 35,206 | ||||||
Accrued interest payable
|
82,695 | 88,121 | ||||||
Other liabilities
|
430,650 | 291,289 | ||||||
Security deposits
|
68,265 | 65,286 | ||||||
Distributions payable
|
109,463 | 179,079 | ||||||
Total liabilities
|
10,157,984 | 10,380,042 | ||||||
Commitments and contingencies
|
||||||||
Redeemable Noncontrolling Interests – Operating Partnership
|
452,203 | 416,404 | ||||||
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
|
||||||||
June 30, 2012 and December 31, 2011
|
200,000 | 200,000 | ||||||
Common Shares of beneficial interest, $0.01 par value;
|
||||||||
1,000,000,000 shares authorized; 300,961,645 shares issued and outstanding as of
|
||||||||
June 30, 2012 and 297,508,185 shares issued and outstanding as of December 31, 2011
|
3,010 | 2,975 | ||||||
Paid in capital
|
5,226,088 | 5,047,186 | ||||||
Retained earnings
|
654,235 | 615,572 | ||||||
Accumulated other comprehensive (loss)
|
(198,075 | ) | (196,718 | ) | ||||
Total shareholders’ equity
|
5,885,258 | 5,669,015 | ||||||
Noncontrolling Interests:
|
||||||||
Operating Partnership
|
144,521 | 119,536 | ||||||
Partially Owned Properties
|
74,446 | 74,306 | ||||||
Total Noncontrolling Interests
|
218,967 | 193,842 | ||||||
Total equity
|
6,104,225 | 5,862,857 | ||||||
Total liabilities and equity
|
$ | 16,714,412 | $ | 16,659,303 |
Equity Residential
|
|||||||||||||||||
Portfolio as of June 30, 2012
|
|||||||||||||||||
Properties
|
Apartment
Units
|
||||||||||||||||
Wholly Owned Properties
|
398 | 111,500 | |||||||||||||||
Partially Owned Properties - Consolidated
|
21 | 3,916 | |||||||||||||||
Military Housing
|
2 | 4,939 | |||||||||||||||
421 | 120,355 | ||||||||||||||||
Portfolio Rollforward 2012
|
|||||||||||||||||
($ in thousands)
|
|||||||||||||||||
Properties
|
Apartment
Units
|
Purchase/
(Sale) Price
|
Cap
Rate
|
||||||||||||||
12/31/2011
|
427 | 121,974 | |||||||||||||||
Acquisitions:
|
|||||||||||||||||
Rental Properties - Consolidated
|
5 | 1,356 | $ | 669,969 | 4.8 | % | |||||||||||
Land Parcels (two)
|
- | - | $ | 23,740 | |||||||||||||
Dispositions:
|
|||||||||||||||||
Rental Properties - Consolidated
|
(12 | ) | (3,184 | ) | $ | (336,250 | ) | 6.4 | % | ||||||||
Completed Developments
|
1 | 168 | |||||||||||||||
Configuration Changes
|
- | 41 | |||||||||||||||
6/30/2012
|
421 | 120,355 |
Equity Residential
|
||||||||||||||||||||||||
Second Quarter 2012 vs. Second Quarter 2011
|
||||||||||||||||||||||||
Same Store Results/Statistics
|
||||||||||||||||||||||||
$ in thousands (except for Average Rental Rate) - 105,604 Same Store Apartment Units
|
||||||||||||||||||||||||
Results
|
Statistics
|
|||||||||||||||||||||||
Average
|
||||||||||||||||||||||||
Rental
|
||||||||||||||||||||||||
Description
|
Revenues
|
Expenses
|
NOI (1)
|
Rate (2)
|
Occupancy
|
Turnover
|
||||||||||||||||||
Q2 2012 | $ | 489,865 | $ | 170,209 | $ | 319,656 | $ | 1,626 | 95.2 | % | 15.5 | % | ||||||||||||
Q2 2011 | $ | 464,313 | $ | 166,862 | $ | 297,451 | $ | 1,539 | 95.4 | % | 15.1 | % | ||||||||||||
Change
|
$ | 25,552 | $ | 3,347 | $ | 22,205 | $ | 87 | (0.2 | %) | 0.4 | % | ||||||||||||
Change
|
5.5 | % | 2.0 | % | 7.5 | % | 5.7 | % | ||||||||||||||||
June YTD 2012 vs. June YTD 2011
|
||||||||||||||||||||||||
Same Store Results/Statistics
|
||||||||||||||||||||||||
$ in thousands (except for Average Rental Rate) - 103,950 Same Store Apartment Units
|
||||||||||||||||||||||||
Results
|
Statistics
|
|||||||||||||||||||||||
Average
|
||||||||||||||||||||||||
Rental
|
||||||||||||||||||||||||
Description
|
Revenues
|
Expenses
|
NOI (1)
|
Rate (2)
|
Occupancy
|
Turnover
|
||||||||||||||||||
YTD 2012
|
$ | 950,505 | $ | 338,380 | $ | 612,125 | $ | 1,605 | 95.1 | % | 27.9 | % | ||||||||||||
YTD 2011
|
$ | 901,181 | $ | 331,925 | $ | 569,256 | $ | 1,520 | 95.2 | % | 26.6 | % | ||||||||||||
Change
|
$ | 49,324 | $ | 6,455 | $ | 42,869 | $ | 85 | (0.1 | %) | 1.3 | % | ||||||||||||
Change
|
5.5 | % | 1.9 | % | 7.5 | % | 5.6 | % |
(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
|
||||||||||||||||||||
Second Quarter 2012 vs. Second Quarter 2011
|
||||||||||||||||||||
Same Store Operating Expenses
|
||||||||||||||||||||
$ in thousands - 105,604 Same Store Apartment Units
|
||||||||||||||||||||
Actual
Q2 2012
|
Actual
Q2 2011
|
$
Change
|
%
Change
|
% of Actual
Q2 2012
Operating
Expenses
|
||||||||||||||||
Real estate taxes
|
$ | 51,110 | $ | 48,219 | $ | 2,891 | 6.0 | % | 30.0 | % | ||||||||||
On-site payroll (1)
|
38,804 | 38,371 | 433 | 1.1 | % | 22.8 | % | |||||||||||||
Utilities (2)
|
25,049 | 24,761 | 288 | 1.2 | % | 14.7 | % | |||||||||||||
Repairs and maintenance (3)
|
24,081 | 23,975 | 106 | 0.4 | % | 14.2 | % | |||||||||||||
Property management costs (4)
|
18,370 | 18,573 | (203 | ) | (1.1 | %) | 10.8 | % | ||||||||||||
Insurance
|
5,528 | 5,137 | 391 | 7.6 | % | 3.2 | % | |||||||||||||
Leasing and advertising
|
2,877 | 3,092 | (215 | ) | (7.0 | %) | 1.7 | % | ||||||||||||
Other on-site operating expenses (5)
|
4,390 | 4,734 | (344 | ) | (7.3 | %) | 2.6 | % | ||||||||||||
Same store operating expenses
|
$ | 170,209 | $ | 166,862 | $ | 3,347 | 2.0 | % | 100.0 | % | ||||||||||
June YTD 2012 vs. June YTD 2011
|
||||||||||||||||||||
Same Store Operating Expenses
|
||||||||||||||||||||
$ in thousands - 103,950 Same Store Apartment Units
|
||||||||||||||||||||
Actual
YTD 2012
|
Actual
YTD 2011
|
$
Change
|
%
Change
|
% of Actual
YTD 2012
Operating
Expenses
|
||||||||||||||||
Real estate taxes
|
$ | 100,173 | $ | 94,906 | $ | 5,267 | 5.5 | % | 29.6 | % | ||||||||||
On-site payroll (1)
|
77,526 | 76,323 | 1,203 | 1.6 | % | 22.9 | % | |||||||||||||
Utilities (2)
|
51,263 | 52,307 | (1,044 | ) | (2.0 | %) | 15.2 | % | ||||||||||||
Repairs and maintenance (3)
|
46,468 | 45,902 | 566 | 1.2 | % | 13.7 | % | |||||||||||||
Property management costs (4)
|
36,119 | 36,047 | 72 | 0.2 | % | 10.7 | % | |||||||||||||
Insurance
|
10,768 | 10,062 | 706 | 7.0 | % | 3.2 | % | |||||||||||||
Leasing and advertising
|
5,492 | 6,307 | (815 | ) | (12.9 | %) | 1.6 | % | ||||||||||||
Other on-site operating expenses (5)
|
10,571 | 10,071 | 500 | 5.0 | % | 3.1 | % | |||||||||||||
Same store operating expenses
|
$ | 338,380 | $ | 331,925 | $ | 6,455 | 1.9 | % | 100.0 | % |
(1)
|
On-site payroll - Includes payroll and related expenses for on-site personnel including property managers, leasing consultants and maintenance staff.
|
(2)
|
Utilities - Represents gross expenses prior to any recoveries under the Resident Utility Billing System ("RUBS"). Recoveries are reflected in rental income.
|
(3)
|
Repairs and maintenance - Includes general maintenance costs, apartment unit turnover costs including interior painting, routine landscaping, security, exterminating, fire protection, snow removal, elevator, roof and parking lot repairs and other miscellaneous building repair costs.
|
(4)
|
Property management costs - Includes payroll and related expenses for departments, or portions of departments, that directly support on-site management. These include such departments as regional and corporate property management, property accounting, human resources, training, marketing and revenue management, procurement, real estate tax, property legal services and information technology.
|
(5)
|
Other on-site operating expenses - Includes administrative costs such as office supplies, telephone and data charges and association and business licensing fees.
|
Equity Residential
|
||||||||||||||||||||||||||
Debt Summary as of June 30, 2012
|
||||||||||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||||||||||
Amount (1)
|
% of Total
|
Weighted
Average
Rates (1)
|
Weighted
Average
Maturities
(years)
|
|||||||||||||||||||||||
Secured
|
$ | 4,004,496 | 42.6 | % | 4.94 | % | 7.4 | |||||||||||||||||||
Unsecured
|
5,389,768 | 57.4 | % | 5.11 | % | 4.9 | ||||||||||||||||||||
Total
|
$ | 9,394,264 | 100.0 | % | 5.03 | % | 5.9 | |||||||||||||||||||
Fixed Rate Debt:
|
||||||||||||||||||||||||||
Secured - Conventional
|
|
$ | 3,590,277 | 38.2 | % | 5.51 | % | 6.5 | ||||||||||||||||||
Unsecured - Public/Private
|
4,550,459 | 48.4 | % | 5.70 | % | 5.7 | ||||||||||||||||||||
Fixed Rate Debt
|
8,140,736 | 86.6 | % | 5.62 | % | 6.0 | ||||||||||||||||||||
Floating Rate Debt:
|
||||||||||||||||||||||||||
Secured - Conventional
|
63,714 | 0.7 | % | 3.33 | % | 1.0 | ||||||||||||||||||||
Secured - Tax Exempt
|
350,505 | 3.7 | % | 0.23 | % | 18.1 | ||||||||||||||||||||
Unsecured - Public/Private
|
804,309 | 8.6 | % | 1.67 | % | 0.4 | ||||||||||||||||||||
Unsecured - Revolving Credit Facility
|
35,000 | 0.4 | % | 1.35 | % | 2.0 | ||||||||||||||||||||
Floating Rate Debt
|
1,253,528 | 13.4 | % | 1.29 | % | 5.1 | ||||||||||||||||||||
Total
|
$ | 9,394,264 | 100.0 | % | 5.03 | % | 5.9 | |||||||||||||||||||
(1) Net of the effect of any derivative instruments. Weighted average rates are for the six months ended June 30, 2012.
|
||||||||||||||||||||||||||
Note: The Company capitalized interest of approximately $10.1 million and $3.7 million during the six months ended June 30, 2012 and 2011, respectively. The Company capitalized interest of approximately $5.1 million and $2.0 million during the quarters ended June 30, 2012 and 2011, respectively.
|
||||||||||||||||||||||||||
Debt Maturity Schedule as of June 30, 2012
|
||||||||||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||||||||||
Year
|
Fixed
Rate (1)
|
Floating
Rate (1)
|
Total
|
% of Total
|
Weighted
Average Rates
on Fixed
Rate Debt (1)
|
Weighted
Average
Rates on
Total Debt (1)
|
||||||||||||||||||||
2012
|
$ | 276,867 | $ | 533,198 | (2) | $ | 810,065 | 8.6 | % | 5.52 | % | 2.50 | % | |||||||||||||
2013
|
267,283 | 304,819 | 572,102 | 6.1 | % | 6.69 | % | 4.85 | % | |||||||||||||||||
2014
|
563,844 | 57,021 | (3) | 620,865 | 6.6 | % | 5.31 | % | 5.02 | % | ||||||||||||||||
2015
|
417,330 | - | 417,330 | 4.4 | % | 6.30 | % | 6.30 | % | |||||||||||||||||
2016
|
1,190,036 | - | 1,190,036 | 12.7 | % | 5.34 | % | 5.34 | % | |||||||||||||||||
2017
|
1,445,589 | 456 | 1,446,045 | 15.4 | % | 5.95 | % | 5.95 | % | |||||||||||||||||
2018
|
80,887 | 724 | 81,611 | 0.9 | % | 5.71 | % | 5.71 | % | |||||||||||||||||
2019
|
802,044 | 20,766 | 822,810 | 8.8 | % | 5.49 | % | 5.36 | % | |||||||||||||||||
2020
|
1,671,868 | 809 | 1,672,677 | 17.8 | % | 5.50 | % | 5.50 | % | |||||||||||||||||
2021
|
1,165,475 | 856 | 1,166,331 | 12.4 | % | 4.64 | % | 4.64 | % | |||||||||||||||||
2022+
|
233,861 | 338,604 | 572,465 | 6.1 | % | 6.75 | % | 3.33 | % | |||||||||||||||||
Premium/(Discount)
|
25,652 | (3,725 | ) | 21,927 | 0.2 | % | N/A | N/A | ||||||||||||||||||
Total
|
$ | 8,140,736 | $ | 1,253,528 | $ | 9,394,264 | 100.0 | % | 5.54 | % | 5.00 | % | ||||||||||||||
(1) Net of the effect of any derivative instruments. Weighted average rates are as of June 30, 2012.
|
||||||||||||||||||||||||||
(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) Includes $35.0 million outstanding on the Company's unsecured revolving credit facility. As of June 30, 2012, there was approximately $1.68 billion available on this facility.
|
Equity Residential
|
||||||||||||||||||
Unsecured Debt Summary as of June 30, 2012
|
||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||
Coupon
Rate
|
Due
Date
|
Face
Amount
|
Unamortized
Premium/
(Discount)
|
Net
Balance
|
||||||||||||||
Fixed Rate Notes:
|
||||||||||||||||||
5.500% |
10/01/12
|
$ | 222,133 | $ | (55 | ) | $ | 222,078 | ||||||||||
5.200% |
04/01/13
|
(1) | 400,000 | (89 | ) | 399,911 | ||||||||||||
Fair Value Derivative Adjustments
|
(1) | (300,000 | ) | - | (300,000 | ) | ||||||||||||
5.250% |
09/15/14
|
500,000 | (136 | ) | 499,864 | |||||||||||||
6.584% |
04/13/15
|
300,000 | (303 | ) | 299,697 | |||||||||||||
5.125% |
03/15/16
|
500,000 | (197 | ) | 499,803 | |||||||||||||
5.375% |
08/01/16
|
400,000 | (758 | ) | 399,242 | |||||||||||||
5.750% |
06/15/17
|
650,000 | (2,543 | ) | 647,457 | |||||||||||||
7.125% |
10/15/17
|
150,000 | (343 | ) | 149,657 | |||||||||||||
4.750% |
07/15/20
|
600,000 | (3,662 | ) | 596,338 | |||||||||||||
4.625% |
12/15/21
|
1,000,000 | (3,588 | ) | 996,412 | |||||||||||||
7.570% |
08/15/26
|
140,000 | - | 140,000 | ||||||||||||||
4,562,133 | (11,674 | ) | 4,550,459 | |||||||||||||||
Floating Rate Notes:
|
||||||||||||||||||
04/01/13
|
(1) | 300,000 | - | 300,000 | ||||||||||||||
Fair Value Derivative Adjustments
|
(1) | 4,309 | - | 4,309 | ||||||||||||||
Term Loan Facility
|
LIBOR+0.50%
|
10/05/12
|
(2)(3) | 500,000 | - | 500,000 | ||||||||||||
804,309 | - | 804,309 | ||||||||||||||||
Revolving Credit Facility:
|
LIBOR+1.15%
|
07/13/14
|
(2)(4) | 35,000 | - | 35,000 | ||||||||||||
Total Unsecured Debt
|
$ | 5,401,442 | $ | (11,674 | ) | $ | 5,389,768 |
(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.
|
(4)
|
As of June 30, 2012, there was approximately $1.68 billion available on the Company's unsecured revolving credit facility.
|
Equity Residential
|
||||||||||||||||||||||||
Capital Structure as of June 30, 2012
|
||||||||||||||||||||||||
(Amounts in thousands except for share/unit and per share amounts)
|
||||||||||||||||||||||||
Secured Debt
|
$ | 4,004,496 | 42.6 | % | ||||||||||||||||||||
Unsecured Debt
|
5,389,768 | 57.4 | % | |||||||||||||||||||||
Total Debt
|
9,394,264 | 100.0 | % | 32.1 | % | |||||||||||||||||||
Common Shares (includes Restricted Shares)
|
300,961,645 | 95.4 | % | |||||||||||||||||||||
Units (includes OP Units and LTIP Units)
|
14,508,752 | 4.6 | % | |||||||||||||||||||||
Total Shares and Units
|
315,470,397 | 100.0 | % | |||||||||||||||||||||
Common Share Price at June 30, 2012
|
$ | 62.36 | ||||||||||||||||||||||
19,672,734 | 99.0 | % | ||||||||||||||||||||||
Perpetual Preferred Equity (see below)
|
200,000 | 1.0 | % | |||||||||||||||||||||
Total Equity
|
19,872,734 | 100.0 | % | 67.9 | % | |||||||||||||||||||
Total Market Capitalization
|
$ | 29,266,998 | 100.0 | % | ||||||||||||||||||||
Perpetual Preferred Equity as of June 30, 2012
|
||||||||||||||||||||||||
(Amounts in thousands except for share and per share amounts)
|
||||||||||||||||||||||||
Series
|
Redemption
Date
|
Outstanding
Shares
|
Liquidation
Value
|
Annual
Dividend
Per Share
|
Annual
Dividend
Amount
|
Weighted
Average
Rate
|
||||||||||||||||||
Preferred Shares:
|
||||||||||||||||||||||||
8.29% Series K
|
12/10/26
|
1,000,000
|
$ | 50,000 | $ | 4.145 | $ | 4,145 | ||||||||||||||||
6.48% Series N (1)
|
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
|
||||||||||||||||
YTD Q212
|
YTD Q211
|
Q212 | Q211 | |||||||||||||
Weighted Average Amounts Outstanding for Net Income Purposes:
|
||||||||||||||||
Common Shares - basic
|
299,499,337 | 293,783,729 | 300,193,311 | 294,662,571 | ||||||||||||
Shares issuable from assumed conversion/vesting of (1):
|
||||||||||||||||
- OP Units
|
13,633,531 | - | 14,061,763 | 13,291,204 | ||||||||||||
- long-term compensation shares/units
|
3,324,096 | - | 3,392,527 | 4,245,599 | ||||||||||||
Total Common Shares and Units - diluted (1)
|
316,456,964 | 293,783,729 | 317,647,601 | 312,199,374 | ||||||||||||
Period Ending Amounts Outstanding:
|
||||||||||||||||
Common Shares (includes Restricted Shares)
|
300,961,645 | 296,280,085 | ||||||||||||||
Units (includes OP Units and LTIP Units)
|
14,508,752 | 13,488,276 | ||||||||||||||
Total Shares and Units
|
315,470,397 | 309,768,361 |
(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 six months ended June 30, 2011.
|
Equity Residential
|
||||||||||||||||||||
Partially Owned Entities as of June 30, 2012
|
||||||||||||||||||||
(Amounts in thousands except for project and apartment unit amounts)
|
||||||||||||||||||||
Consolidated
|
Unconsolidated
|
|||||||||||||||||||
Development Projects
|
||||||||||||||||||||
Held for
and/or Under
Development
|
Completed
and Stabilized
|
Other
|
Total
|
Institutional Joint Ventures (4)
|
||||||||||||||||
Total projects (1)
|
- | 2 | 19 | 21 | - | |||||||||||||||
Total apartment units (1)
|
- | 441 | 3,475 | 3,916 | - | |||||||||||||||
Operating information for the six months ended 6/30/12 (at 100%):
|
||||||||||||||||||||
Operating revenue
|
$ | - | $ | 4,733 | $ | 30,467 | $ | 35,200 | $ | - | ||||||||||
Operating expenses
|
75 | 1,358 | 9,711 | 11,144 | - | |||||||||||||||
Net operating (loss) income
|
(75 | ) | 3,375 | 20,756 | 24,056 | - | ||||||||||||||
Depreciation
|
- | 2,085 | 7,683 | 9,768 | - | |||||||||||||||
General and administrative/other
|
42 | 3 | 30 | 75 | - | |||||||||||||||
Operating (loss) income
|
(117 | ) | 1,287 | 13,043 | 14,213 | - | ||||||||||||||
Interest and other income
|
1 | 2 | - | 3 | - | |||||||||||||||
Other expenses
|
(126 | ) | - | - | (126 | ) | - | |||||||||||||
Interest:
|
||||||||||||||||||||
Expense incurred, net
|
- | (671 | ) | (4,694 | ) | (5,365 | ) | - | ||||||||||||
Amortization of deferred financing costs
|
- | (135 | ) | (89 | ) | (224 | ) | - | ||||||||||||
(Loss) income before income and other taxes
|
(242 | ) | 483 | 8,260 | 8,501 | - | ||||||||||||||
Income and other tax (expense) benefit
|
(25 | ) | - | (21 | ) | (46 | ) | - | ||||||||||||
Net (loss) income
|
$ | (267 | ) | $ | 483 | $ | 8,239 | $ | 8,455 | $ | - | |||||||||
Debt - Secured (2):
|
||||||||||||||||||||
EQR Ownership (3)
|
$ | - | $ | 32,950 | $ | 159,068 | $ | 192,018 | $ | 2,594 | ||||||||||
Noncontrolling Ownership
|
- | - | 41,269 | 41,269 | 10,374 | |||||||||||||||
Total (at 100%)
|
$ | - | $ | 32,950 | $ | 200,337 | $ | 233,287 | $ | 12,968 |
(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.
|
(4)
|
These development projects (Nexus Sawgrass and Domain) are owned 20% by the company and 80% by an institutional partner in two separate unconsolidated joint ventures. 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.
|
Equity Residential
|
||||||||||||||||||||||||||||
Repairs and Maintenance Expenses and Capital Expenditures to Real Estate
|
||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012
|
||||||||||||||||||||||||||||
(Amounts in thousands except for apartment unit and per apartment unit amounts)
|
||||||||||||||||||||||||||||
Capital Expenditures to Real Estate
|
||||||||||||||||||||||||||||
Total
Apartment
Units (1)
|
Replacements
(2)
|
Avg. Per
Apartment
Unit
|
Building
Improvements
(3)
|
Avg. Per
Apartment
Unit
|
Total
|
Avg. Per
Apartment
Unit
|
||||||||||||||||||||||
Same Store Properties (4)
|
103,950 | $ | 32,501 | $ | 313 | $ | 23,856 | $ | 229 | $ | 56,357 | $ | 542 | (7) | ||||||||||||||
Non-Same Store Properties (5)
|
11,466 | 2,940 | 281 | 8,636 | 825 | 11,576 | 1,106 | |||||||||||||||||||||
Other (6)
|
- | 288 | 98 | 386 | ||||||||||||||||||||||||
Total
|
115,416 | $ | 35,729 | $ | 32,590 | $ | 68,319 |
(1)
|
Total Apartment Units - Excludes 4,939 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 $15.9 million spent during the six months ended June 30, 2012 on apartment unit renovations/rehabs (primarily kitchens and baths) on 2,254 apartment units (equating to about $7,100 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, 2011, less properties subsequently sold.
|
(5)
|
Non-Same Store Properties - Primarily includes all properties acquired during 2011 and 2012, plus any properties in lease-up and not stabilized as of January 1, 2011. Per apartment unit amounts are based on a weighted average of 10,463 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)
|
||||||||||||||||
Six Months Ended
June 30,
|
Quarter Ended
June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
REVENUES
|
||||||||||||||||
Rental income
|
$ | 10,131 | $ | 105,762 | $ | 3,198 | $ | 41,757 | ||||||||
Total revenues
|
10,131 | 105,762 | 3,198 | 41,757 | ||||||||||||
EXPENSES (1)
|
||||||||||||||||
Property and maintenance
|
3,197 | 49,951 | 1,376 | 22,471 | ||||||||||||
Real estate taxes and insurance
|
920 | 7,581 | 325 | 2,887 | ||||||||||||
Depreciation
|
2,027 | 19,039 | 660 | 7,115 | ||||||||||||
General and administrative
|
40 | 47 | 36 | 36 | ||||||||||||
Total expenses
|
6,184 | 76,618 | 2,397 | 32,509 | ||||||||||||
Discontinued operating income
|
3,947 | 29,144 | 801 | 9,248 | ||||||||||||
Interest and other income
|
43 | 101 | 18 | 96 | ||||||||||||
Other expenses
|
- | - | - | 4 | ||||||||||||
Interest (2):
|
||||||||||||||||
Expense incurred, net
|
(369 | ) | (1,209 | ) | (288 | ) | (605 | ) | ||||||||
Amortization of deferred financing costs
|
- | (647 | ) | - | (578 | ) | ||||||||||
Income and other tax (expense) benefit
|
49 | (62 | ) | 129 | (20 | ) | ||||||||||
Discontinued operations
|
3,670 | 27,327 | 660 | 8,145 | ||||||||||||
Net gain on sales of discontinued operations
|
204,053 | 682,236 | 71,097 | 558,482 | ||||||||||||
Discontinued operations, net
|
$ | 207,723 | $ | 709,563 | $ | 71,757 | $ | 566,627 |
(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 except)
|
||||||||||||||||
Same Store NOI Reconciliation
|
||||||||||||||||
The following tables present reconciliations of operating income per the consolidated statements of operations to NOI for the June YTD 2012 and Second Quarter 2012 Same Store Properties:
|
||||||||||||||||
Six Months Ended June 30,
|
Quarter Ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Operating income
|
$ | 310,601 | $ | 254,771 | $ | 165,711 | $ | 139,857 | ||||||||
Adjustments:
|
||||||||||||||||
Non-same store operating results
|
(69,848 | ) | (17,950 | ) | (30,755 | ) | (6,827 | ) | ||||||||
Fee and asset management revenue
|
(4,276 | ) | (3,754 | ) | (2,212 | ) | (1,948 | ) | ||||||||
Fee and asset management expense
|
2,487 | 1,957 | 1,180 | 1,009 | ||||||||||||
Depreciation
|
346,079 | 311,891 | 172,338 | 154,452 | ||||||||||||
General and administrative
|
27,082 | 22,341 | 13,394 | 10,908 | ||||||||||||
Same store NOI
|
$ | 612,125 | $ | 569,256 | $ | 319,656 | $ | 297,451 |