Debt

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Debt

9. Debt

EQR does not have any indebtedness as all debt is incurred by the Operating Partnership.  Weighted average interest rates noted below for the nine months ended September 30, 2021 include the effect of any derivative instruments and amortization of premiums/discounts/OCI (other comprehensive income) on debt and derivatives.

Mortgage Notes Payable

The following table summarizes the Company’s mortgage notes payable activity for the nine months ended September 30, 2021 (amounts in thousands):

	Mortgage notes payable, net as of December 31, 2020		Proceeds			Lump sum payoffs			Scheduled principal repayments			Amortization of premiums/ discounts		Amortization of deferred financing costs, net (1)			Mortgage notes payable, net as of September 30, 2021
Fixed Rate Debt:
Secured – Conventional	$	1,901,091	$	28,500	(2)	$	(28,200	)	$	(5,570	)	$	1,140	$	689		$	1,897,650
Floating Rate Debt:
Secured – Conventional		31,494		22,798			—			—			—		(1,719	)		52,573
Secured – Tax Exempt		361,305		—			(31,680	)		—			929		388			330,942
Floating Rate Debt		392,799		22,798			(31,680	)		—			929		(1,331	)		383,515
Total	$	2,293,890	$	51,298		$	(59,880	)	$	(5,570	)	$	2,069	$	(642	)	$	2,281,165

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

(2) Obtained 3.58% fixed rate mortgage debt maturing on March 1, 2031.

The following table summarizes certain interest rate and maturity date information as of and for the nine months ended September 30, 2021:

	September 30, 2021
Interest Rate Ranges	0.06% - 4.21%
Weighted Average Interest Rate	3.16%
Maturity Date Ranges	2022-2061

As of September 30, 2021, the Company had $250.0 million of secured debt (primarily tax-exempt bonds) subject to third-party credit enhancement.

Notes

The following table summarizes the Company’s notes activity for the nine months ended September 30, 2021 (amounts in thousands):

	Notes, net as of December 31, 2020		Proceeds			Lump sum payoffs		Realized/unrealized (gain) loss on derivative instruments		Amortization of premiums/ discounts		Amortization of deferred financing costs, net (1)			Notes, net as of September 30, 2021
Fixed Rate Debt:
Unsecured – Public	$	5,335,536	$	497,470	(2)	$	—	$	—	$	1,865	$	(1,388	)	$	5,833,483

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

(2) Issued $500.0 million of ten-year 1.85% unsecured notes, receiving net proceeds before underwriting fees and other expenses.

The following table summarizes certain interest rate and maturity date information as of and for the nine months ended September 30, 2021:

	September 30, 2021
Interest Rate Ranges	1.85% - 7.57%
Weighted Average Interest Rate	3.69%
Maturity Date Ranges	2023-2047

The Company’s unsecured public notes contain certain financial and operating covenants including, among other things, maintenance of certain financial ratios.  The Company was in compliance with its unsecured public debt covenants for the nine months ended September 30, 2021.

Line of Credit and Commercial Paper

The Company has a $2.5 billion unsecured revolving credit facility maturing November 1, 2024.  The Company has the ability to increase available borrowings by an additional $750.0 million by adding lenders to the facility, obtaining the agreement of existing lenders to increase their commitments or incurring one or more term loans.  The interest rate on advances under the facility will generally be LIBOR plus a spread (currently 0.775%), or based on bids received from the lending group, and the Company pays an annual facility fee (currently 0.125%).  Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating.  The Company did not borrow any amounts under its revolving credit facility during the nine months ended September 30, 2021.

The Company has an unsecured commercial paper note program in which it may borrow up to a maximum of $1.0 billion subject to market conditions.  The notes will be sold under customary terms in the United States commercial paper note market and will rank pari passu with all of the Company’s other unsecured senior indebtedness.  The notes bear interest at various floating rates with a weighted average interest rate of 0.28% for the nine months ended September 30, 2021 and a weighted average maturity of 1 day as of September 30, 2021.  The weighted average amount outstanding for the nine months ended September 30, 2021 was approximately $556.7 million.

The Company limits its utilization of the revolving credit facility in order to maintain liquidity to support its $1.0 billion commercial paper program along with certain other obligations.  The following table presents the availability on the Company’s unsecured revolving credit facility as of September 30, 2021 (amounts in thousands):

	September 30, 2021
Unsecured revolving credit facility commitment	$	2,500,000
Commercial paper balance outstanding		(30,000	)
Unsecured revolving credit facility balance outstanding		—
Other restricted amounts		(100,442	)
Unsecured revolving credit facility availability	$	2,369,558

Other

The following table summarizes the Company’s total debt extinguishment costs recorded as additional interest expense during the nine months ended September 30, 2021 (amounts in thousands):

	September 30, 2021
Write-offs of unamortized deferred financing costs	$	264