Equity Residential Reports Third Quarter 2024 Results

Third Quarter 2024 Results

All per share results are reported as available to common shares/units on a diluted basis.


	Quarter Ended September 30,
	2024		2023	$ Change		% Change
Earnings Per Share (EPS)	$	0.38		$	0.45		$	(0.07	)	(15.6	%)
Funds from Operations (FFO) per share	$	0.99		$	0.96		$	0.03		3.1	%
Normalized FFO (NFFO) per share	$	0.98		$	0.96		$	0.02		2.1	%


	Nine Months Ended September 30,
	2024		2023	$ Change		% Change
Earnings Per Share (EPS)	$	1.62		$	1.38		$	0.24	17.4	%
Funds from Operations (FFO) per share	$	2.79		$	2.74		$	0.05	1.8	%
Normalized FFO (NFFO) per share	$	2.89		$	2.78		$	0.11	4.0	%

Recent Highlights

During the third quarter of 2024, the Company acquired fourteen properties, consisting of 4,418 apartment units, for an aggregate acquisition price of approximately $1.26 billion at a weighted average Acquisition Cap Rate of 5.1%. These assets are located in the Company’s Expansion Markets of Atlanta, Dallas/Ft. Worth and Denver.

In September of 2024, the Company issued $600.0 million of unsecured 10-year notes at a coupon rate of 4.65%, the lowest 10-year coupon rate issued by a REIT since 2022, and an all-in effective yield of 4.9%. Proceeds from this issuance were used to partially fund the acquisitions described above.

Same store revenue increased 2.7% for the third quarter of 2024 compared to the third quarter of 2023, driven by good demand and modest supply across most of the Company’s markets. Same store expense increased 3.2% with low growth in the primary expense categories. Same store Net Operating Income (NOI) increased 2.5%.

The Company published its 11th annual Corporate Responsibility report highlighting Equity Residential’s goals and accomplishments.

“We delivered solid same store revenue results in the quarter with the underlying drivers mostly in line with expectations. Our business continues to benefit from high employment levels among our well earning resident base, wage growth across the economy and limited home ownership and rental options in most of our markets, making our well-located apartment properties an appealing choice," said Mark J. Parrell, Equity Residential’s President and CEO. “Looking ahead, we continue to be excited about the prospects for our business as lower levels of competitive new supply in future years, especially in our Established Markets on the coasts, along with a positive forward employment picture for our higher earning customer, positions us well to continue to grow cash flows.”

Results Per Share

The change in EPS for the quarter ended September 30, 2024 compared to the same period of 2023 is due primarily to lower property sale gains, higher depreciation expense, the various adjustment items listed on page 27 of this release and the items described below. The change in EPS for the nine months ended September 30, 2024 compared to the same period of 2023 is due primarily to higher property sale gains, higher depreciation expense, the various adjustment items listed on page 27 of this release and the items described below.

The per share changes in FFO for the quarter and nine months ended September 30, 2024 compared to the same periods of 2023 are due primarily to the various adjustment items listed on page 27 of this release and the items described below.

The per share changes in Normalized FFO are due primarily to:

	Positive/(Negative) Impact
	Third Quarter 2024 vs. Third Quarter 2023			September YTD 2024 vs. September YTD 2023
Same store NOI	$	0.03			$	0.13
Lease-Up NOI	–				0.01
2024 and 2023 transaction activity impact on NOI, net		0.01				(0.02	)
Interest expense, net		(0.01	)			(0.01	)
Corporate overhead (1)		(0.01	)			(0.02	)
Other items	–				0.02
Net	$	0.02			$	0.11

(1)	Corporate overhead includes property management and general and administrative expenses.

The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 29 through 34 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 7, 31 and 32 of this release.

Same Store Results

The following table shows the total same store results for the periods presented (includes Residential and Non-Residential).

	Third Quarter 2024 vs. Third Quarter 2023	Third Quarter 2024 vs. Second Quarter 2024	September YTD 2024 vs. September YTD 2023
Apartment Units	77,203	78,633	76,916
Physical Occupancy	96.1% vs. 96.0%	96.1% vs. 96.3%	96.3% vs. 95.9%

Revenues	2.7%	0.5%	3.2%
Expenses	3.2%	2.3%	2.3%
NOI	2.5%	(0.4%)	3.7%

The following table reflects the detail of the change in Same Store Residential Revenues, which is presented on a GAAP basis showing Leasing Concessions on a straight-line basis.

	Third Quarter 2024 vs. Third Quarter 2023		Third Quarter 2024 vs. Second Quarter 2024		September YTD 2024 vs. September YTD 2023
	% Change		% Change		% Change
Same Store Residential Revenues-
comparable period
Lease rates	2.0	%		0.9	%	2.5	%
Leasing Concessions	(0.1	%)		0.0	%	(0.2	%)
Vacancy gain (loss)	0.2	%		(0.4	%)	0.3	%
Bad Debt, Net (1)	0.2	%		0.1	%	0.2	%
Other (2)	0.2	%		0.0	%	0.3	%
Same Store Residential Revenues-
current period	2.5	%		0.6	%	3.1	%

(1)	Change in rental income due to bad debt write-offs and reserves, net of amounts (including governmental rental assistance payments) collected on previously written-off or reserved accounts. See page 13 for more detail.
(2)	Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items.

See page 12 for detail and reconciliations of Same Store Residential Revenues on a GAAP basis to Same Store Residential Revenues with Leasing Concessions on a cash basis.

Residential Same Store Operating Statistics

The following table includes select operating metrics for Residential Same Store Properties (for 76,916 same store apartment units):

	Q3 2024	Q2 2024
Physical Occupancy	96.1%	96.4%
Percentage of Residents Renewing by quarter	56.7%	57.7%

New Lease Change	(1.2%)	0.2%
Renewal Rate Achieved	4.6%	5.0%
Blended Rate (1)	2.0%	2.9%

(1)	Blended Rates for Established Markets were 2.4% and 3.3% for Q3 2024 and Q2 2024, respectively. See page 17.

In the third quarter of 2024, Physical Occupancy and Percentage of Residents Renewing exceeded expectations while Renewal Rate Achieved remained strong. In September 2024, New Lease Change, a volatile metric, seasonally decelerated more quickly than anticipated, primarily due to weakness in the city of Los Angeles and in our Expansion Markets, leading to Blended Rates at the low end of the Company's expected range for the third quarter of 2024. Blended Rate has normalized with typical seasonal patterns thus far in the fourth quarter of 2024 and is expected to be between 0.75% and 1.25% for the fourth quarter of 2024.

Investment Activity

During the third quarter of 2024, the Company acquired 14 properties consisting of 4,418 apartment units, located in the Company’s Expansion Markets of Atlanta, Dallas/Ft. Worth and Denver, for an aggregate acquisition price of approximately $1.26 billion at a weighted average Acquisition Cap Rate of 5.1%. The acquired properties are seven years old on average. Subsequent to the end of the third quarter of 2024, the Company acquired a two year old, 274 apartment unit property in suburban Atlanta for a purchase price of $89.5 million. During the third quarter of 2024, the Company sold a 63 year old property, located in Washington, D.C., consisting of 138 apartment units, for a sale price of approximately $31.5 million at a Disposition Yield of 6.1%.

During the first nine months of 2024, the Company acquired 15 properties, consisting of 4,578 apartment units, for an aggregate purchase price of approximately $1.3 billion at a weighted average Acquisition Cap Rate of 5.1%. The acquired properties are six years old on average. Also during the first nine months of 2024, the Company sold six properties consisting of 969 apartment units, for an aggregate sale price of approximately $365.5 million at a weighted average Disposition Yield of 5.7%. The properties sold during 2024 have an average age of 43 years.

As of September 30, 2024, the Company has 42 properties (including those under development) located in its Expansion Markets of Atlanta, Austin, Dallas/Ft. Worth and Denver, which constitutes approximately 10% of total portfolio NOI.

“We are seeing an increasingly active transaction market providing us with opportunities to acquire properties in our Expansion Markets at attractive prices relative to replacement costs and at reasonable cap rates on depressed rent rolls as we execute on our strategy to better balance our portfolio,” said Alec Brackenridge, Equity Residential's Executive Vice President and Chief Investment Officer. “We are continuing to build a portfolio in the metro areas on the coasts and in select markets in the sunbelt that are most desirable to our target affluent renter demographic and have favorable long-term return characteristics.”

Capital Markets Activity

On September 11, 2024, the Company closed on the issuance of $600.0 million of 10-year unsecured notes at a coupon rate of 4.65%, which is the lowest 10-year coupon rate issued by a REIT since 2022, and an all-in effective yield of 4.9%. Proceeds from the offering were used to partially fund the Company’s acquisition activity during the quarter.

Fourth Quarter 2024 Guidance

The Company has established guidance ranges for the fourth quarter of 2024 EPS, FFO per share and Normalized FFO per share as listed below:

		Q4 2024 Guidance
EPS		$1.01 to $1.05
FFO per share		$0.95 to $0.99
Normalized FFO per share		$0.98 to $1.02

The difference between the third quarter of 2024 actual EPS of $0.38 and the fourth quarter of 2024 EPS guidance midpoint of $1.03 is due primarily to higher expected property sale gains, higher expected depreciation expense, lower expected non-operating asset gains and the items described below.

The difference between the third quarter of 2024 actual FFO of $0.99 per share and the fourth quarter of 2024 FFO guidance midpoint of $0.97 per share is due primarily to lower expected non-operating asset gains and the items described below.

The difference between the third quarter of 2024 actual Normalized FFO of $0.98 per share and the fourth quarter of 2024 Normalized FFO guidance midpoint of $1.00 per share is due primarily to:

	Expected Positive/(Negative) Impact
	Fourth Quarter 2024 vs. Third Quarter 2024
Same store NOI	$	0.01
2024 and 2023 transaction activity impact on NOI, net		0.02
Interest expense, net		(0.02	)
Corporate overhead		0.01
Net	$	0.02

About Equity Residential

Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. Equity Residential owns or has investments in 312 properties consisting of 84,018 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin. For more information on Equity Residential, please visit our website at www.equityapartments.com.

Forward-Looking Statements

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

A live web cast of the Company’s conference call discussing these results will take place tomorrow, Thursday, October 31, 2024 at 10:30 a.m. CT. In connection with the conference call, the Company is also providing a Management Presentation on its website. Please visit the Investor section of the Company’s website at www.equityapartments.com for the webcast link.

Equity Residential

Consolidated Statements of Operations

(Amounts in thousands except per share data)

(Unaudited)

Nine Months Ended September 30,

Quarter Ended September 30,

2024

2023

2024

2023

REVENUES

Rental income

$

2,213,329

$

2,146,464

$

748,348

$

724,067

EXPENSES

Property and maintenance

396,349

391,437

135,221

129,087

Real estate taxes and insurance

320,452

312,607

105,954

102,858

Property management

100,381

90,314

31,412

28,169

General and administrative

48,902

49,135

14,551

14,094

Depreciation

688,041

661,921

237,948

224,736

Total expenses

1,554,125

1,505,414

525,086

498,944

Net gain (loss) on sales of real estate properties

227,829

127,034

(165

)

26,912

Interest and other income

26,501

11,296

15,844

7,627

Other expenses

(59,094

)

(20,517

)

(13,971

)

(4,958

)

Interest:

Expense incurred, net

(205,762

)

(200,882

)

(72,722

)

(68,891

)

Amortization of deferred financing costs

(5,784

)

(7,023

)

(1,948

)

(3,027

)

Income before income and other taxes, income (loss) from

investments in unconsolidated entities and net gain (loss)

on sales of land parcels

642,894

550,958

150,300

182,786

Income and other tax (expense) benefit

(925

)

(892

)

(290

)

(258

)

Income (loss) from investments in unconsolidated entities

(4,865

)

(3,847

)

(1,493

)

(1,242

)

Net income

637,104

546,219

148,517

181,286

Net (income) loss attributable to Noncontrolling Interests:

Operating Partnership

(17,290

)

(17,174

)

(4,012

)

(5,561

)

Partially Owned Properties

(3,098

)

(5,299

)

(1,059

)

(3,217

)

Net income attributable to controlling interests

616,716

523,746

143,446

172,508

Preferred distributions

(1,258

)

(2,318

)

(356

)

(773

)

Premium on redemption of Preferred Shares

(1,444

)

—

—

—

Net income available to Common Shares

$

614,014

$

521,428

$

143,090

$

171,735

Earnings per share – basic:

Net income available to Common Shares

$

1.62

$

1.38

$

0.38

$

0.45

Weighted average Common Shares outstanding

378,718

378,614

378,756

378,853

Earnings per share – diluted:

Net income available to Common Shares

$

1.62

$

1.38

$

0.38

$

0.45

Weighted average Common Shares outstanding

390,688

391,135

391,026

391,351

Distributions declared per Common Share outstanding

$

2.025

$

1.9875

$

0.675

$

0.6625

Equity Residential

Consolidated Statements of Funds From Operations and Normalized Funds From Operations

(Amounts in thousands except per share and Unit data)

(Unaudited)

Nine Months Ended September 30,

Quarter Ended September 30,

2024

2023

2024

2023

Net income

$

637,104

$

546,219

$

148,517

$

181,286

Net (income) loss attributable to Noncontrolling Interests – Partially

Owned Properties

(3,098

)

(5,299

)

(1,059

)

(3,217

)

Preferred distributions

(1,258

)

(2,318

)

(356

)

(773

)

Premium on redemption of Preferred Shares

(1,444

)

—

—

—

Net income available to Common Shares and Units

631,304

538,602

147,102

177,296

Adjustments:

Depreciation

688,041

661,921

237,948

224,736

Depreciation – Non-real estate additions

(2,839

)

(3,291

)

(942

)

(1,032

)

Depreciation – Partially Owned Properties

(1,645

)

(1,599

)

(556

)

(544

)

Depreciation – Unconsolidated Properties

3,881

1,921

2,429

695

Net (gain) loss on sales of unconsolidated entities - operating assets

(710

)

—

(710

)

—

Net (gain) loss on sales of real estate properties

(227,829

)

(127,034

)

165

(26,912

)

Noncontrolling Interests share of gain (loss) on sales

of real estate properties

—

2,336

—

2,336

FFO available to Common Shares and Units

1,090,203

1,072,856

385,436

376,575

Adjustments (see note for additional detail):

Write-off of pursuit costs

1,905

2,739

536

746

Debt extinguishment and preferred share redemption (gains) losses

1,444

1,143

—

1,096

Non-operating asset (gains) losses

(17,452

)

(4,735

)

(14,236

)

(5,766

)

Other miscellaneous items

53,432

14,831

12,758

3,488

Normalized FFO available to Common Shares and Units

$

1,129,532

$

1,086,834

$

384,494

$

376,139

FFO

$

1,092,905

$

1,075,174

$

385,792

$

377,348

Preferred distributions

(1,258

)

(2,318

)

(356

)

(773

)

Premium on redemption of Preferred Shares

(1,444

)

—

—

—

FFO available to Common Shares and Units

$

1,090,203

$

1,072,856

$

385,436

$

376,575

FFO per share and Unit – basic

$

2.80

$

2.75

$

0.99

$

0.97

FFO per share and Unit – diluted

$

2.79

$

2.74

$

0.99

$

0.96

Normalized FFO

$

1,130,790

$

1,089,152

$

384,850

$

376,912

Preferred distributions

(1,258

)

(2,318

)

(356

)

(773

)

Normalized FFO available to Common Shares and Units

$

1,129,532

$

1,086,834

$

384,494

$

376,139

Normalized FFO per share and Unit – basic

$

2.90

$

2.79

$

0.99

$

0.96

Normalized FFO per share and Unit – diluted

$

2.89

$

2.78

$

0.98

$

0.96

Weighted average Common Shares and Units outstanding – basic

389,379

389,991

389,379

390,087

Weighted average Common Shares and Units outstanding – diluted

390,688

391,135

391,026

391,351

Note: See

Adjustments from FFO to Normalized FFO

for additional detail regarding the adjustments from FFO to Normalized FFO. See

Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms

for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.

Equity Residential

Consolidated Balance Sheets

(Amounts in thousands except for share amounts)

(Unaudited)

September 30,

December 31,

2024

2023

ASSETS

Land

$

5,675,037

$

5,581,876

Depreciable property

24,148,043

22,938,426

Projects under development

222,055

78,036

Land held for development

65,113

114,300

Investment in real estate

30,110,248

28,712,638

Accumulated depreciation

(10,386,783

)

(9,810,337

)

Investment in real estate, net

19,723,465

18,902,301

Investments in unconsolidated entities 1

359,810

282,049

Cash and cash equivalents

28,610

50,743

Restricted deposits

97,949

89,252

Right-of-use assets

458,673

457,266

Other assets

257,314

252,953

Total assets

$

20,925,821

$

20,034,564

LIABILITIES AND EQUITY

Liabilities:

Mortgage notes payable, net

$

1,633,414

$

1,632,902

Notes, net

5,945,670

5,348,417

Line of credit and commercial paper

786,561

409,131

Accounts payable and accrued expenses

165,787

87,377

Accrued interest payable

50,633

65,716

Lease liabilities

306,119

311,640

Other liabilities

294,543

272,596

Security deposits

74,350

69,178

Distributions payable

263,425

259,231

Total liabilities

9,520,502

8,456,188

Commitments and contingencies

Redeemable Noncontrolling Interests – Operating Partnership

351,803

289,248

Equity:

Shareholders' equity:

Preferred Shares of beneficial interest, $0.01 par value;

100,000,000 shares authorized; 343,100 shares issued and

outstanding as of September 30, 2024 and 745,600 shares issued

and outstanding as of December 31, 2023

17,155

37,280

Common Shares of beneficial interest, $0.01 par value;

1,000,000,000 shares authorized; 379,354,738 shares issued

and outstanding as of September 30, 2024 and 379,291,417

shares issued and outstanding as of December 31, 2023

3,794

3,793

Paid in capital

9,584,539

9,601,866

Retained earnings

1,244,953

1,437,185

Accumulated other comprehensive income (loss)

3,534

5,704

Total shareholders’ equity

10,853,975

11,085,828

Noncontrolling Interests:

Operating Partnership

199,206

202,306

Partially Owned Properties

335

994

Total Noncontrolling Interests

199,541

203,300

Total equity

11,053,516

11,289,128

Total liabilities and equity

$

20,925,821

$

20,034,564

1 Includes $297.5 million and $220.2 million in unconsolidated projects (primarily development) as of September 30, 2024 and December 31, 2023, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects.

Equity Residential

Portfolio Summary

As of September 30, 2024

% of
Stabilized

Average

Apartment

Budgeted

Rental

Markets/Metro Areas

Properties

Units

NOI

Rate

Established Markets:

Los Angeles

58

14,732

16.7

%

$

2,943

Orange County

12

3,718

4.9

%

2,937

San Diego

12

2,878

3.9

%

3,127

Subtotal – Southern California

82

21,328

25.5

%

2,967

Washington, D.C.

46

14,728

15.6

%

2,761

San Francisco

41

11,410

14.6

%

3,343

New York

34

8,536

13.8

%

4,669

Boston

27

7,237

11.6

%

3,612

Seattle

44

9,267

10.1

%

2,636

Subtotal – Established Markets

274

72,506

91.2

%

3,209

Expansion Markets:

Denver

14

4,181

3.9

%

2,350

Atlanta

12

3,788

2.9

%

2,020

Dallas/Ft. Worth

9

2,802

1.6

%

1,903

Austin

3

741

0.4

%

1,780

Subtotal – Expansion Markets

38

11,512

8.8

%

2,096

Total

312

84,018

100.0

%

$

3,058

Properties

Apartment Units

Wholly Owned Properties

297

80,749

Partially Owned Properties – Consolidated

14

3,060

Partially Owned Properties – Unconsolidated

1

209

312

84,018

Note: Projects under development are not included in the Portfolio Summary until construction has been completed.

Equity Residential

Portfolio Rollforward Q3 2024

($ in thousands)

Properties

Apartment
Units

Purchase
Price

Acquisition
Cap Rate

6/30/2024

299

79,738

Acquisitions:

Consolidated Rental Properties

14

4,418

$

1,255,250

5.1

%

Sales Price

Disposition
Yield

Dispositions:

Consolidated Rental Properties

(1

)

(138

)

$

(31,500

)

(6.1

%)

9/30/2024

312

84,018

Portfolio Rollforward 2024

($ in thousands)

Properties

Apartment
Units

Purchase
Price

Acquisition
Cap Rate

12/31/2023

302

80,191

Acquisitions:

Consolidated Rental Properties

14

4,418

$

1,255,250

5.1

%

Consolidated Rental Properties – Not Stabilized (1)

1

160

$

62,595

5.7

%

Unconsolidated Land Parcels (2)

—

—

$

33,394

Sales Price

Disposition
Yield

Dispositions:

Consolidated Rental Properties

(6

)

(969

)

$

(365,500

)

(5.7

%)

Completed Developments – Unconsolidated

1

209

Configuration Changes

—

9

9/30/2024

312

84,018

(1)

The Company acquired one property in the Boston market during the nine months ended September 30, 2024 that is in lease-up and is expected to stabilize in its second year of ownership at the Acquisition Cap Rate listed above.

(2)

The Company previously entered into separate unconsolidated joint ventures for the purpose of developing vacant land parcels in suburban Boston, MA and suburban Seattle, WA. The joint ventures acquired their respective land parcels during the nine months ended September 30, 2024 for the total purchase price listed. The Company's total investment in these two joint ventures is approximately $69.0 million as of September 30, 2024. See Development and Lease-Up Projects for additional detail.

Equity Residential

Third Quarter 2024 vs. Third Quarter 2023

Same Store Results/Statistics Including 77,203 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands except for Average Rental Rate)

Results

Statistics

Description

Revenues

Expenses

NOI

Average
Rental
Rate

Physical
Occupancy

Turnover

Q3 2024

$

722,308

$

230,098

$

492,210

$

3,132

96.1

%

13.3

%

Q3 2023

$

703,370

$

223,047

$

480,323

$

3,060

96.0

%

13.8

%

Change

$

18,938

$

7,051

$

11,887

$

72

0.1

%

(0.5

%)

Change

2.7

%

3.2

%

2.5

%

2.4

%

Third Quarter 2024 vs. Second Quarter 2024

Same Store Results/Statistics Including 78,633 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands except for Average Rental Rate)

Results

Statistics

Description

Revenues

Expenses

NOI

Average
Rental
Rate

Physical
Occupancy

Turnover

Q3 2024

$

731,670

$

233,606

$

498,064

$

3,116

96.1

%

13.3

%

Q2 2024

$

728,288

$

228,344

$

499,944

$

3,091

96.3

%

11.7

%

Change

$

3,382

$

5,262

$

(1,880

)

$

25

(0.2

%)

1.6

%

Change

0.5

%

2.3

%

(0.4

%)

0.8

%

September YTD 2024 vs. September YTD 2023

Same Store Results/Statistics Including 76,916 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands except for Average Rental Rate)

Results

Statistics

Description

Revenues

Expenses

NOI

Average
Rental
Rate

Physical
Occupancy

Turnover

September YTD 2024

$

2,151,275

$

684,342

$

1,466,933

$

3,108

96.3

%

33.5

%

September YTD 2023

$

2,083,707

$

668,633

$

1,415,074

$

3,025

95.9

%

34.6

%

Change

$

67,568

$

15,709

$

51,859

$

83

0.4

%

(1.1

%)

Change

3.2

%

2.3

%

3.7

%

2.7

%

Equity Residential

Same Store Residential Revenues – GAAP to Cash Basis (1)

($ in thousands)

Third Quarter 2024 vs. Third Quarter 2023

Third Quarter 2024 vs. Second Quarter 2024

Sept. YTD 2024 vs. Sept. YTD 2023

77,203 Same Store Apartment Units

78,633 Same Store Apartment Units

76,916 Same Store Apartment Units

Q3 2024

Q3 2023

Q3 2024

Q2 2024

Sept. YTD 2024

Sept. YTD 2023

Same Store Residential Revenues (GAAP Basis)

$

696,686

$

679,652

$

706,030

$

701,912

$

2,069,756

$

2,007,129

Leasing Concessions amortized

4,903

4,065

5,277

5,326

14,859

9,997

Leasing Concessions granted (2)

(5,891

)

(5,387

)

(6,187

)

(4,070

)

(14,503

)

(13,538

)

Same Store Residential Revenues with Leasing
Concessions on a cash basis

$

695,698

$

678,330

$

705,120

$

703,168

$

2,070,112

$

2,003,588

% change - GAAP revenue

2.5

%

0.6

%

3.1

%

% change - cash revenue

2.6

%

0.3

%

3.3

%

(1)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.

(2)

Concession usage is primarily concentrated in San Francisco, Los Angeles, Seattle and the Expansion Markets. Material declines for the nine months ended September 30, 2024 in Leasing Concessions granted in Seattle and San Francisco have been offset by increases in Los Angeles and the Expansion Markets in the same period.

Same Store Net Operating Income By Quarter

Including 76,916 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands)

Q3 2024

Q2 2024

Q1 2024

Q4 2023

Q3 2023

Same store revenues

$

720,371

$

717,335

$

713,569

$

705,600

$

701,423

Same store expenses

229,559

224,220

230,563

216,667

222,586

Same store NOI

$

490,812

$

493,115

$

483,006

$

488,933

$

478,837

Equity Residential

Same Store Residential Accounts Receivable Balances

Including 76,916 Same Store Apartment Units

($ in thousands)

Balance Sheet (Other assets):

September 30, 2024

June 30, 2024

September 30, 2023

Residential accounts receivable balances

$

15,273

$

16,270

$

24,670

Allowance for doubtful accounts

(9,754

)

(11,147

)

(19,436

)

Net receivable balances

$

5,519

$

5,123

$

5,234

Straight-line receivable balances

$

8,075

(1)

$

7,088

$

7,824

(1)

Total same store Residential Leasing Concessions granted in the third quarter of 2024 were approximately $5.9 million. The straight-line receivable balance of $8.1 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in the remainder of 2024 and the first three quarters of 2025.

Same Store Residential Bad Debt

Including 76,916 Same Store Apartment Units

($ in thousands)

Income Statement (Rental income):

Q3 2024

Q2 2024

Q3 2023

Bad debts before governmental rental assistance

$

7,697

$

8,079

$

9,092

Governmental rental assistance received

(295

)

(426

)

(410

)

Bad Debt, Net

$

7,402

$

7,653

$

8,682

Bad Debt, Net as a % of Same Store Residential Revenues

1.1

%

1.1

%

1.3

%

Equity Residential

Third Quarter 2024 vs. Third Quarter 2023

Same Store Residential Results/Statistics by Market

Increase (Decrease) from Prior Year's Quarter

Markets/Metro Areas

Apartment
Units

Q3 2024
% of
Actual
NOI

Q3 2024
Average
Rental
Rate

Q3 2024
Weighted
Average
Physical
Occupancy %

Q3 2024
Turnover

Revenues

Expenses

NOI

Average
Rental
Rate

Physical
Occupancy

Turnover

Los Angeles

14,135

17.2

%

$

2,940

95.5

%

12.5

%

1.2

%

3.7

%

0.2

%

1.5

%

(0.2

%)

0.2

%

Orange County

3,718

5.1

%

2,937

96.1

%

10.7

%

2.7

%

6.7

%

1.5

%

3.3

%

(0.6

%)

(0.2

%)

San Diego

2,878

4.2

%

3,127

95.7

%

12.5

%

2.5

%

3.9

%

2.1

%

2.1

%

0.4

%

0.0

%

Subtotal – Southern California

20,731

26.5

%

2,965

95.6

%

12.1

%

1.7

%

4.1

%

0.7

%

1.9

%

(0.2

%)

0.1

%

Washington, D.C.

14,416

16.4

%

2,764

96.6

%

14.1

%

4.2

%

7.8

%

2.5

%

4.4

%

(0.2

%)

(0.4

%)

San Francisco

11,188

15.8

%

3,347

95.8

%

12.7

%

1.2

%

1.6

%

1.0

%

0.9

%

0.2

%

(0.5

%)

New York

8,536

14.5

%

4,669

97.4

%

11.0

%

3.9

%

3.9

%

3.9

%

3.1

%

0.9

%

(1.7

%)

Boston

7,077

11.2

%

3,627

96.1

%

14.9

%

3.2

%

0.4

%

4.3

%

3.1

%

0.0

%

(1.0

%)

Seattle

9,266

10.4

%

2,635

96.1

%

13.8

%

3.3

%

4.9

%

2.6

%

2.4

%

0.9

%

(0.5

%)

Denver

2,792

2.8

%

2,403

95.8

%

17.8

%

(0.9

%)

2.0

%

(2.1

%)

0.0

%

(0.7

%)

(0.4

%)

Other Expansion Markets

3,197

2.4

%

1,931

95.1

%

16.4

%

(2.6

%)

(21.2

%)

(1)

11.5

%

(3.2

%)

0.5

%

(1.6

%)

Total

77,203

100.0

%

$

3,132

96.1

%

13.3

%

2.5

%

3.0

%

2.3

%

2.4

%

0.1

%

(0.5

%)

(1)

Expense decline primarily due to favorable Texas real estate taxes.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.3% of total revenues for the nine months ended September 30, 2024.

Equity Residential

Third Quarter 2024 vs. Second Quarter 2024

Same Store Residential Results/Statistics by Market

Increase (Decrease) from Prior Quarter

Markets/Metro Areas

Apartment
Units

Q3 2024
% of
Actual
NOI

Q3 2024
Average
Rental
Rate

Q3 2024
Weighted
Average
Physical
Occupancy %

Q3 2024
Turnover

Revenues

Expenses

NOI

Average
Rental
Rate

Physical
Occupancy

Turnover

Los Angeles

14,135

17.0

%

$

2,940

95.5

%

12.5

%

0.0

%

5.3

%

(2.3

%)

0.2

%

(0.2

%)

0.8

%

Orange County

3,718

5.1

%

2,937

96.1

%

10.7

%

1.0

%

4.5

%

0.0

%

0.8

%

0.2

%

(0.1

%)

San Diego

2,878

4.1

%

3,127

95.7

%

12.5

%

(0.2

%)

4.7

%

(1.6

%)

0.0

%

(0.2

%)

0.9

%

Subtotal – Southern California

20,731

26.2

%

2,965

95.6

%

12.1

%

0.1

%

5.1

%

(1.7

%)

0.3

%

(0.2

%)

0.6

%

Washington, D.C.

14,728

16.4

%

2,761

96.6

%

14.0

%

1.6

%

6.6

%

(0.7

%)

1.9

%

(0.3

%)

2.5

%

San Francisco

11,410

15.9

%

3,342

95.8

%

12.6

%

0.5

%

6.6

%

(2.0

%)

0.7

%

(0.3

%)

1.0

%

New York

8,536

14.3

%

4,669

97.4

%

11.0

%

1.3

%

0.1

%

2.1

%

1.3

%

0.0

%

1.5

%

Boston

7,077

11.1

%

3,627

96.1

%

14.9

%

(0.2

%)

0.2

%

(0.3

%)

0.5

%

(0.6

%)

3.5

%

Seattle

9,266

10.3

%

2,635

96.1

%

13.8

%

1.0

%

0.2

%

1.4

%

1.2

%

(0.2

%)

1.4

%

Denver

2,792

2.8

%

2,403

95.8

%

17.8

%

(1.5

%)

5.3

%

(4.3

%)

(0.6

%)

(1.0

%)

3.8

%

Other Expansion Markets

4,093

3.0

%

1,934

95.1

%

16.1

%

(1.2

%)

(19.8

%)

(1)

13.3

%

(1.4

%)

0.2

%

0.3

%

Total

78,633

100.0

%

$

3,116

96.1

%

13.3

%

0.6

%

2.4

%

(0.3

%)

0.8

%

(0.2

%)

1.6

%

(1)

Expense decline primarily due to favorable Texas real estate taxes.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.3% of total revenues for the nine months ended September 30, 2024.

Equity Residential

September YTD 2024 vs. September YTD 2023

Same Store Residential Results/Statistics by Market

Increase (Decrease) from Prior Year

Markets/Metro Areas

Apartment
Units

Sept. YTD 24
% of
Actual
NOI

Sept. YTD 24
Average
Rental
Rate

Sept. YTD 24
Weighted
Average
Physical
Occupancy %

Sept. YTD 24
Turnover

Revenues

Expenses

NOI

Average
Rental
Rate

Physical
Occupancy

Turnover

Los Angeles

14,135

17.5

%

$

2,932

95.6

%

33.7

%

3.2

%

2.2

%

3.7

%

3.0

%

0.2

%

0.1

%

Orange County

3,718

5.2

%

2,917

96.0

%

28.9

%

4.1

%

4.6

%

3.9

%

4.3

%

(0.3

%)

0.0

%

San Diego

2,878

4.2

%

3,119

95.9

%

32.1

%

4.5

%

1.9

%

5.2

%

4.0

%

0.4

%

0.0

%

Subtotal – Southern California

20,731

26.9

%

2,955

95.7

%

32.6

%

3.6

%

2.5

%

4.0

%

3.4

%

0.1

%

0.0

%

Washington, D.C.

14,416

16.5

%

2,716

96.9

%

32.6

%

4.8

%

2.8

%

5.8

%

4.6

%

0.2

%

0.1

%

San Francisco

11,188

15.9

%

3,321

96.2

%

33.8

%

1.5

%

0.6

%

1.9

%

1.0

%

0.5

%

0.3

%

New York

8,536

14.3

%

4,624

97.3

%

27.1

%

3.6

%

4.0

%

3.4

%

3.1

%

0.5

%

(3.2

%)

Boston

7,077

11.2

%

3,597

96.2

%

33.8

%

4.1

%

0.9

%

5.4

%

3.9

%

0.2

%

(1.7

%)

Seattle

9,266

10.4

%

2,602

96.2

%

36.0

%

1.7

%

4.9

%

0.5

%

0.7

%

1.0

%

(3.8

%)

Denver

2,505

2.6

%

2,418

96.3

%

42.7

%

0.4

%

0.1

%

0.6

%

0.8

%

0.0

%

(3.9

%)

Other Expansion Markets

3,197

2.2

%

1,958

95.2

%

45.8

%

(0.8

%)

(6.8

%)

(1)

3.9

%

(1.4

%)

0.4

%

0.9

%

Total

76,916

100.0

%

$

3,108

96.3

%

33.5

%

3.1

%

2.3

%

3.5

%

2.7

%

0.4

%

(1.1

%)

(1)

Expense decline primarily due to favorable Texas real estate taxes.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.3% of total revenues for the nine months ended September 30, 2024.

Equity Residential

Same Store Residential Net Effective Lease Pricing Statistics

For 76,916 Same Store Apartment Units

New Lease Change (1)

Renewal Rate Achieved (1)

Blended Rate (1)

Markets/Metro Areas

Q3 2024

Q2 2024

Q3 2024

Q2 2024

Q3 2024

Q2 2024

Southern California

(2.7

%)

(2)

(2.4

%)

4.2

%

4.5

%

0.9

%

1.4

%

Washington, D.C.

2.3

%

4.8

%

5.2

%

6.7

%

3.9

%

5.9

%

San Francisco

(1.2

%)

0.4

%

5.2

%

5.1

%

2.0

%

2.9

%

New York

0.9

%

3.5

%

4.1

%

4.4

%

2.9

%

4.0

%

Boston

1.5

%

0.3

%

5.1

%

5.0

%

3.6

%

3.0

%

Seattle

(3.8

%)

0.5

%

4.8

%

5.3

%

0.9

%

3.3

%

Subtotal – Established Markets

(0.5

%)

0.9

%

4.7

%

5.1

%

2.4

%

3.3

%

Denver

(10.0

%)

(4.6

%)

4.3

%

3.9

%

(3.1

%)

(0.5

%)

Other Expansion Markets

(13.6

%)

(12.5

%)

1.2

%

2.7

%

(6.8

%)

(6.2

%)

Subtotal – Expansion Markets

(11.8

%)

(9.1

%)

2.8

%

3.3

%

(4.9

%)

(3.5

%)

Total

(1.2

%)

0.2

%

4.6

%

5.0

%

2.0

%

2.9

%

(1)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions.

(2)

As previously mentioned, New Lease Change in the city of Los Angeles decelerated more quickly than expected during the third quarter of 2024. Performance in the city of Los Angeles has improved thus far in the fourth quarter of 2024.

Equity Residential

Third Quarter 2024 vs. Third Quarter 2023

Total Same Store Operating Expenses Including 77,203 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands)

Q3 2024

Q3 2023

$
Change

%
Change

% of
Q3 2024
Operating
Expenses

Real estate taxes

$

92,513

$

90,731

$

1,782

2.0

%

40.2

%

On-site payroll

43,732

44,066

(334

)

(0.8

%)

19.0

%

Utilities

36,838

34,023

2,815

8.3

%

16.0

%

Repairs and maintenance

32,121

31,043

1,078

3.5

%

14.0

%

Insurance

9,223

8,438

785

9.3

%

4.0

%

Leasing and advertising

2,948

2,784

164

5.9

%

1.3

%

Other on-site operating expenses

12,723

11,962

761

6.4

%

5.5

%

Total Same Store Operating Expenses (2)

$

230,098

$

223,047

$

7,051

3.2

%

100.0

%

September YTD 2024 vs. September YTD 2023

Total Same Store Operating Expenses Including 76,916 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands)

YTD 2024

YTD 2023

$
Change (1)

%
Change

% of
YTD 2024
Operating
Expenses

Real estate taxes

$

279,731

$

271,701

$

8,030

3.0

%

40.9

%

On-site payroll

128,807

128,853

(46

)

0.0

%

18.8

%

Utilities

105,976

104,312

1,664

1.6

%

15.5

%

Repairs and maintenance

93,180

92,406

774

0.8

%

13.6

%

Insurance

27,800

25,258

2,542

10.1

%

4.0

%

Leasing and advertising

7,990

7,882

108

1.4

%

1.2

%

Other on-site operating expenses

40,858

38,221

2,637

6.9

%

6.0

%

Total Same Store Operating Expenses (2)

$

684,342

$

668,633

$

15,709

2.3

%

100.0

%

(1)

The year-over-year changes were primarily driven by the following factors:

Real estate taxes – Increase due to escalation in rates and assessed values including an approximately one percentage point contribution to growth from 421-a tax abatement burnoffs in New York City. Once the burnoffs are completed, previously rent-restricted apartment units will transition to market.

On-site payroll – No change as higher wages were offset by the impact of various innovation initiatives.

Utilities – Increase primarily driven by higher water, sewer and trash expense, partially offset by lower commodity prices for gas and electric.

Repairs and maintenance – Modest growth benefiting from lower resident Turnover compared to the same period of 2023.

Insurance – Increase due to higher premiums on property insurance renewal due to conditions in the insurance market that while less difficult than recent years, remain challenging.

Other on-site operating expenses – Increase primarily driven by higher property-related legal expenses.

(2)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

Equity Residential

Debt Summary as of September 30, 2024

($ in thousands)

Debt
Balances (1)

% of Total

Weighted
Average
Rates (1)

Weighted
Average
Maturities
(years)

Secured

$

1,633,414

19.5

%

3.85

%

7.1

Unsecured

6,732,231

80.5

%

3.67

%

7.3

Total

$

8,365,645

100.0

%

3.71

%

7.3

Fixed Rate Debt:

Secured – Conventional

$

1,400,472

16.7

%

3.89

%

6.7

Unsecured – Public

5,945,670

71.1

%

3.52

%

8.2

Fixed Rate Debt

7,346,142

87.8

%

3.60

%

7.9

Floating Rate Debt:

Secured – Tax Exempt

232,942

2.8

%

3.62

%

10.0

Unsecured – Revolving Credit Facility

—

—

6.14

%

3.1

Unsecured – Commercial Paper Program (2)

786,561

9.4

%

5.51

%

—

Floating Rate Debt

1,019,503

12.2

%

4.85

%

2.4

Total

$

8,365,645

100.0

%

3.71

%

7.3

(1)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

(2)

At September 30, 2024, the weighted average maturity of commercial paper outstanding was 22 days. The weighted average amount outstanding for the nine months ended September 30, 2024 was approximately $420.5 million.

Note: The Company capitalized interest of approximately $10.7 million and $9.6 million during the nine months ended September 30, 2024 and 2023, respectively. The Company capitalized interest of approximately $3.8 million and $2.6 million during the quarters ended September 30, 2024 and 2023, respectively.

Equity Residential

Debt Maturity Schedule as of September 30, 2024

($ in thousands)

Year

Fixed
Rate

Floating
Rate

Total

% of Total

Weighted
Average Coupons
on Fixed
Rate Debt (1)

Weighted
Average
Coupons on
Total Debt (1)

2024

$

—

$

792,700

(2)

$

792,700

9.4

%

—

5.11

%

2025

450,000

8,100

458,100

5.4

%

3.38

%

3.37

%

2026

592,025

9,000

601,025

7.1

%

3.58

%

3.58

%

2027

400,000

9,800

409,800

4.9

%

3.25

%

3.24

%

2028

900,000

10,700

910,700

10.8

%

3.79

%

3.78

%

2029

888,120

11,500

899,620

10.7

%

3.30

%

3.30

%

2030

1,148,462

12,700

1,161,162

13.8

%

2.53

%

2.54

%

2031

528,500

39,800

568,300

6.7

%

1.94

%

2.03

%

2032

—

28,100

28,100

0.3

%

—

2.93

%

2033

550,000

2,300

552,300

6.5

%

5.22

%

5.21

%

2034+

1,950,850

108,600

2,059,450

24.4

%

4.47

%

4.35

%

Subtotal

7,407,957

1,033,300

8,441,257

100.0

%

3.62

%

3.73

%

Deferred Financing Costs and Unamortized (Discount)

(61,815

)

(13,797

)

(75,612

)

N/A

N/A

N/A

Total

$

7,346,142

$

1,019,503

$

8,365,645

100.0

%

3.62

%

3.73

%

(1)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

(2)

Includes $789.0 million in principal outstanding on the Company's Commercial Paper Program.

Equity Residential

Selected Unsecured Public Debt Covenants

September 30,

June 30,

2024

2024

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

28.4%

25.6%

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

6.3%

6.7%

Consolidated Income Available for Debt Service to

Maximum Annual Service Charges

(must be at least 1.5 to 1)

5.97

6.68

Total Unencumbered Assets to Unsecured Debt

(must be at least 125%)

457.7%

534.8%

Note: These selected covenants represent the most restrictive financial covenants relating to ERP Operating Limited Partnership's ("ERPOP") outstanding public debt securities. Equity Residential is the general partner of ERPOP.

Selected Credit Ratios

September 30,

June 30,

2024

2024

Total debt to Normalized EBITDAre

4.60x

3.96x

Net debt to Normalized EBITDAre

4.56x

3.92x

Unencumbered NOI as a % of total NOI

89.7%

89.6%

Note: See Normalized EBITDAre Reconciliations for detail.

Equity Residential

Capital Structure as of September 30, 2024

(Amounts in thousands except for share/unit and per share amounts)

Secured Debt

$

1,633,414

19.5

%

Unsecured Debt

6,732,231

80.5

%

Total Debt

8,365,645

100.0

%

22.3

%

Common Shares (includes Restricted Shares)

379,354,738

97.0

%

Units (includes OP Units and Restricted Units)

11,562,954

3.0

%

Total Shares and Units

390,917,692

100.0

%

Common Share Price at September 30, 2024

$

74.46

29,107,731

99.9

%

Perpetual Preferred Equity (see below)

17,155

0.1

%

Total Equity

29,124,886

100.0

%

77.7

%

Total Market Capitalization

$

37,490,531

100.0

%

Perpetual Preferred Equity as of September 30, 2024

(Amounts in thousands except for share and per share amounts)

Series

Call Date

Outstanding
Shares

Liquidation
Value

Annual
Dividend
Per Share

Annual
Dividend
Amount

Preferred Shares:

8.29% Series K

12/10/26

343,100

$

17,155

$

4.145

$

1,422

Equity Residential

Common Share and Unit

Weighted Average Amounts Outstanding

Sept. YTD 2024

Sept. YTD 2023

Q3 2024

Q3 2023

Weighted Average Amounts Outstanding for Net Income Purposes:

Common Shares - basic

378,718,147

378,613,604

378,755,925

378,852,510

Shares issuable from assumed conversion/vesting of:

- OP Units

10,661,328

11,377,365

10,622,681

11,234,877

- long-term compensation shares/units

1,308,755

1,144,517

1,647,562

1,263,254

Total Common Shares and Units - diluted

390,688,230

391,135,486

391,026,168

391,350,641

Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes:

Common Shares - basic

378,718,147

378,613,604

378,755,925

378,852,510

OP Units - basic

10,661,328

11,377,365

10,622,681

11,234,877

Total Common Shares and OP Units - basic

389,379,475

389,990,969

389,378,606

390,087,387

Shares issuable from assumed conversion/vesting of:

- long-term compensation shares/units

1,308,755

1,144,517

1,647,562

1,263,254

Total Common Shares and Units - diluted

390,688,230

391,135,486

391,026,168

391,350,641

Period Ending Amounts Outstanding:

Common Shares (includes Restricted Shares)

379,354,738

379,723,838

Units (includes OP Units and Restricted Units)

11,562,954

11,733,485

Total Shares and Units

390,917,692

391,457,323

Equity Residential

Development and Lease-Up Projects as of September 30, 2024

(Amounts in thousands except for project and apartment unit amounts)

Estimated/Actual

Projects

Location

Ownership
Percentage

No. of
Apartment
Units

Total
Budgeted Capital
Cost

Total
Book Value
to Date

Total
Debt (1)

Percentage
Completed

Start
Date

Initial
Occupancy

Completion
Date

Stabilization
Date

Percentage
Leased / Occupied

CONSOLIDATED:

Projects Under Development:

Lorien (fka Laguna Clara II)

Santa Clara, CA

100%

225

$

152,621

$

122,760

$

—

86%

Q2 2022

Q4 2024

Q1 2025

Q4 2025

– / –

The Basin

Wakefield, MA

95%

440

232,172

99,295

—

30%

Q1 2024

Q4 2025

Q3 2026

Q2 2027

– / –

Projects Under Development - Consolidated

665

384,793

222,055

—

UNCONSOLIDATED:

Projects Under Development:

Alexan Harrison

Harrison, NY

62%

450

200,664

194,298

104,339

99%

Q3 2021

Q1 2024

Q4 2024

Q2 2026

55% / 47%

Solana Beeler Park

Denver, CO

90%

270

85,206

77,833

43,398

91%

Q4 2021

Q3 2024

Q2 2025

Q4 2025

7% / 1%

Remy (Toll)

Frisco, TX

75%

357

98,937

93,201

47,621

97%

Q1 2022

Q2 2024

Q4 2024

Q3 2025

55% / 51%

Sadie (fka Settler) (Toll)

Fort Worth, TX

75%

362

82,775

75,341

33,675

98%

Q2 2022

Q2 2024

Q4 2024

Q3 2025

44% / 41%

Lyle (Toll) (2)

Dallas, TX

75%

334

86,332

78,282

43,453

96%

Q3 2022

Q1 2024

Q4 2024

Q1 2026

51% / 48%

Modera Bridle Trails

Kirkland, WA

95%

369

185,282

48,741

—

8%

Q3 2024

Q2 2027

Q3 2027

Q4 2028

– / –

Modera South Shore

Marshfield, MA

95%

270

121,918

23,454

—

10%

Q3 2024

Q1 2026

Q4 2026

Q2 2027

– / –

Projects Under Development - Unconsolidated

2,412

861,114

591,150

272,486

Projects Completed Not Stabilized:

Alloy Sunnyside

Denver, CO

80%

209

70,004

69,303

32,833

100%

Q3 2021

Q2 2024

Q2 2024

Q3 2025

29% / 23%

Projects Completed Not Stabilized - Unconsolidated

209

70,004

69,303

32,833

Total Development Projects - Consolidated

665

384,793

222,055

—

Total Development Projects - Unconsolidated

2,621

931,118

660,453

305,319

Total Development Projects

3,286

$

1,315,911

$

882,508

$

305,319

NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS

Total Budgeted
Capital Cost

Q3 2024
NOI

Projects Under Development - Consolidated

$

384,793

$

—

Projects Under Development - Unconsolidated

861,114

2,461

Projects Completed Not Stabilized - Unconsolidated

70,004

(330

)

$

1,315,911

$

2,131

(1)

All unconsolidated projects are being partially funded with project-specific construction loans. None of these loans are recourse to the Company.

(2)

The land parcel under this project is subject to a long-term ground lease.

Equity Residential

Capital Expenditures to Real Estate

For the Nine Months Ended September 30, 2024

(Amounts in thousands except for apartment unit and per apartment unit amounts)

Same Store
Properties

Non-Same Store
Properties/Other

Total Consolidated
Properties

Same Store Avg.
Per Apartment Unit

Total Consolidated Apartment Units

76,916

6,893

83,809

Building Improvements

$

90,648

$

6,943

(2)

$

97,591

$

1,178

Renovation Expenditures

79,695

(1)

8,938

(2)

88,633

1,036

Replacements

43,502

381

43,883

566

Capital Expenditures to Real Estate (3)

213,845

16,262

230,107

2,780

Less: NOI-Enhancing Expenditures (3)

(98,465

)

(4)

(8,981

)

(107,446

)

(1,280

)

Recurring Capital Expenditures to Real Estate (3)

$

115,380

$

7,281

$

122,661

$

1,500

(1)

Renovation Expenditures on 2,611 same store apartment units for the nine months ended September 30, 2024 approximated $30,500 per apartment unit renovated.

(2)

Includes expenditures for two properties that have been removed from same store while undergoing major renovations requiring a significant number of apartment units to be vacated to accommodate the extensive planned improvements. The renovation at one property was substantially completed in the second quarter of 2024, while the renovation of the other is ongoing and expected to continue into 2026.

(3)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

(4)

The $98.5 million of NOI-Enhancing Expenditures for Same Store Properties noted above consists of the $79.7 million of Renovation Expenditures for Same Store Properties noted above with the remainder concentrated in sustainability and property-level technology spend.

Equity Residential

Normalized EBITDAre Reconciliations

(Amounts in thousands)

Trailing Twelve Months

2024

2023

September 30, 2024

June 30, 2024

Q3

Q2

Q1

Q4

Q3

Net income

$

959,373

$

992,142

$

148,517

$

183,555

$

305,032

$

322,269

$

181,286

Interest expense incurred, net

274,436

270,605

72,722

65,828

67,212

68,674

68,891

Amortization of deferred financing costs

7,702

8,781

1,948

1,918

1,918

1,918

3,027

Amortization of above/below market lease intangibles

4,476

4,464

1,128

1,116

1,116

1,116

1,116

Depreciation

914,829

901,617

237,948

224,398

225,695

226,788

224,736

Income and other tax expense (benefit)

1,181

1,149

290

331

304

256

258

EBITDA

2,161,997

2,178,758

462,553

477,146

601,277

621,021

479,314

Net (gain) loss on sales of real estate properties

(383,334

)

(410,411

)

165

(39,809

)

(188,185

)

(155,505

)

(26,912

)

Net (gain) loss on sales of unconsolidated entities - operating assets

(710

)

—

(710

)

—

—

—

—

EBITDAre

1,777,953

1,768,347

462,008

437,337

413,092

465,516

452,402

Write-off of pursuit costs (other expenses)

2,813

3,023

536

821

548

908

746

(Income) loss from investments in unconsolidated entities - operations

7,106

6,145

2,203

1,674

1,698

1,531

1,242

Realized (gain) loss on investment securities (interest and other income)

1,323

(275

)

—

1,316

—

7

(1,598

)

Unrealized (gain) loss on investment securities (interest and other income)

(28,885

)

(19,211

)

(14,135

)

1,316

(7,061

)

(9,005

)

(4,461

)

Insurance/litigation settlement or reserve income (interest and other income)

(1,584

)

(1,621

)

(25

)

(1,454

)

(105

)

—

(62

)

Insurance/litigation/environmental settlement or reserve expense (other expenses)

48,762

48,667

3,199

9,391

30,478

5,694

3,104

Advocacy contributions (other expenses)

13,948

4,514

9,584

2,558

141

1,665

150

Data transformation project (other expenses)

—

295

—

—

—

—

295

Other

(937

)

(936

)

—

(412

)

77

(602

)

1

Normalized EBITDAre

$

1,820,499

$

1,808,948

$

463,370

$

452,547

$

438,868

$

465,714

$

451,819

Balance Sheet Items:

September 30, 2024

June 30, 2024

Total debt

$

8,365,645

$

7,157,183

Cash and cash equivalents

(28,610

)

(38,298

)

Mortgage principal reserves/sinking funds

(33,124

)

(33,266

)

Net debt

$

8,303,911

$

7,085,619

Note: EBITDA, EBITDAre and Normalized EBITDAre do not include any adjustments for the Company’s share of partially owned unconsolidated entities or the minority partner’s share of partially owned consolidated entities due to the immaterial size of the Company’s partially owned portfolio.

Equity Residential

Adjustments from FFO to Normalized FFO

(Amounts in thousands)

Nine Months Ended September 30,

Quarter Ended September 30,

2024

2023

Variance

2024

2023

Variance

Impairment – non-operating real estate assets

$

—

$

—

$

—

$

—

$

—

$

—

Write-off of pursuit costs (other expenses)

1,905

2,739

(834

)

536

746

(210

)

Write-off of unamortized deferred financing costs (interest expense)

—

1,143

(1,143

)

—

1,096

(1,096

)

Premium on redemption of Preferred Shares

1,444

—

1,444

—

—

—

Debt extinguishment and preferred share redemption (gains) losses

1,444

1,143

301

—

1,096

(1,096

)

(Income) loss from investments in unconsolidated entities ─ non-operating assets

1,112

1,237

(125

)

(101

)

293

(394

)

Realized (gain) loss on investment securities (interest and other income)

1,316

(1,511

)

2,827

—

(1,598

)

1,598

Unrealized (gain) loss on investment securities (interest and other income)

(19,880

)

(4,461

)

(15,419

)

(14,135

)

(4,461

)

(9,674

)

Non-operating asset (gains) losses

(17,452

)

(4,735

)

(12,717

)

(14,236

)

(5,766

)

(8,470

)

Insurance/litigation settlement or reserve income (interest and other income)

(1,584

)

(1,055

)

(529

)

(25

)

(62

)

37

Insurance/litigation/environmental settlement or reserve expense (other expenses) (1)

43,068

11,616

31,452

3,199

3,104

95

Advocacy contributions (other expenses)

12,283

477

11,806

9,584

150

9,434

Data transformation project (other expenses)

—

3,780

(3,780

)

—

295

(295

)

Other

(335

)

13

(348

)

—

1

(1

)

Other miscellaneous items

53,432

14,831

38,601

12,758

3,488

9,270

Adjustments from FFO to Normalized FFO

$

39,329

$

13,978

$

25,351

$

(942

)

$

(436

)

$

(506

)

(1)

Insurance/litigation/environmental settlement or reserve expense for the third quarter of 2024 primarily represents reserve adjustments related to a commercial dispute and other litigation expenses, while the expense for the nine months ended September 30, 2024 primarily relates to a reserve increased in the first quarter of 2024 regarding litigation over late fees charged by the Company.

Note: See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.

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. Therefore, certain items excluded from Normalized FFO, such as debt extinguishment costs/prepayment penalties and the write-off of pursuit costs, are not included in the estimates provided on this page. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.

Q4 2024

Revised Full Year 2024

Previous Full Year 2024

2024 Normalized FFO Guidance (per share diluted)

Expected Normalized FFO Per Share

$0.98 to $1.02

$3.87 to $3.91

$3.86 to $3.92

2024 Same Store Assumptions (includes Residential and Non-Residential)

Physical Occupancy

96.2%

96.2%

Revenue change

2.9% to 3.5%

2.9% to 3.5%

Expense change

2.5% to 3.5%

2.5% to 3.5%

NOI change (1)

3.0% to 3.5%

3.0% to 3.5%

2024 Transaction Assumptions

Consolidated rental acquisitions

$1.6B

$1.0B

Consolidated rental dispositions

$800.0M

$1.0B

Transaction Accretion (Dilution)

(25 basis points)

(25 basis points)

2024 Debt Assumptions

Weighted average debt outstanding

$7.73B to $7.78B

$7.30B to $7.50B

Interest expense, net (on a Normalized FFO basis)

$283.5M to $287.5M

$267.3M to $273.3M

Capitalized interest

$14.0M to $15.0M

$12.5M to $15.5M

2024 Capital Expenditures to Real Estate Assumptions for Same Store Properties (2)

Capital Expenditures to Real Estate for Same Store Properties

$295.0M

$295.0M

Capital Expenditures to Real Estate per Same Store Apartment Unit

$3,800

$3,800

2024 Other Guidance Assumptions

Property management expense

$128.5M to $131.5M

$128.5M to $131.5M

General and administrative expense

$59.5M to $63.5M

$59.5M to $63.5M

Debt offerings

$600.0M

No amounts budgeted

Weighted average Common Shares and Units - Diluted

390.9M

390.7M

(1)

Approximately 20 basis point change in NOI percentage = $0.01 per share change in EPS/FFO per share/Normalized FFO per share.

(2)

During 2024, the Company expects that approximately 40% of its Capital Expenditures to Real Estate for Same Store Properties will be NOI-Enhancing (primarily renovations, sustainability and property-level technology spend). During 2024, the Company expects to spend approximately $99.2 million for apartment unit Renovation Expenditures on approximately 3,100 same store apartment units at an average cost of approximately $32,000 per apartment unit renovated with the remainder of the NOI-Enhancing spend consisting of sustainability and property-level technology expenditures.

Equity Residential

Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms

(Amounts in thousands except per share and per apartment unit data)

(All per share data is diluted)

This Earnings Release and Supplemental Financial Information includes certain non-GAAP financial measures and other terms that management believes are helpful in understanding our business. The definitions and calculations of these non-GAAP financial measures and other terms may differ from the definitions and methodologies used by other real estate investment trusts (“REIT”) and, accordingly, may not be comparable. These non-GAAP financial measures should not be considered as an alternative to net earnings or any other measurement of performance computed in accordance with accounting principles generally accepted in the United States (“GAAP”) or as an alternative to cash flows from specific operating, investing or financing activities. Furthermore, these non-GAAP financial measures are not intended to be a measure of cash flow or liquidity.

Acquisition Capitalization Rate or Cap Rate – NOI that the Company anticipates receiving in the next 12 months (or the year two or three stabilized NOI for properties that are in lease-up at acquisition) less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $100-$450 per apartment unit depending on the age and condition of the asset) divided by the gross purchase price of the asset. The weighted average Acquisition Cap Rate for acquired properties is weighted based on the projected NOI streams and the relative purchase price for each respective property.

Average Rental Rate – Total Residential rental revenues reflected on a straight-line basis in accordance with GAAP divided by the weighted average occupied apartment units for the reporting period presented.

Bad Debt, Net – Change in rental income due to bad debt write-offs and reserves, net of amounts collected on previously written-off or reserved accounts.

Blended Rate – The weighted average of New Lease Change and Renewal Rate Achieved.

Capital Expenditures to Real Estate:

Building Improvements – Includes roof replacement, paving, building mechanical equipment systems, exterior siding and painting, major landscaping, furniture, fixtures and equipment for amenities and common areas, vehicles and office and maintenance equipment.

NOI-Enhancing – Primarily includes Renovation Expenditures as well as sustainability and property-level technology expenditures that are intended to increase revenues or decrease expenses.

Recurring – Capital expenditures necessary to help preserve the value of and maintain the functionality at our apartment properties.

Renovation Expenditures – Apartment unit renovation costs (primarily kitchens and baths) designed to reposition these units for higher rental levels in their respective markets.

Replacements – Includes appliances, mechanical equipment, fixtures and flooring (including hardwood and carpeting).

Debt Balances:

Commercial Paper Program – The Company may borrow up to a maximum of $1.0 billion under its Commercial Paper Program subject to market conditions. The notes bear interest at various floating rates.

Revolving Credit Facility – The Company’s $2.5 billion unsecured revolving credit facility matures October 26, 2027. The interest rate on advances under the facility will generally be SOFR plus a spread (currently 0.715%), or based on bids received from the lending group, and an annual facility fee (currently 0.125%). Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating and other terms and conditions per the agreement. In addition, the Company limits its utilization of the 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:

September 30, 2024

Unsecured revolving credit facility commitment

$

2,500,000

Commercial paper balance outstanding

(789,000

)

Unsecured revolving credit facility balance outstanding

—

Other restricted amounts

(3,438

)

Unsecured revolving credit facility availability

$

1,707,562

Debt Covenant Compliance – Our unsecured debt includes certain financial and operating covenants including, among other things, maintenance of certain financial ratios. These provisions are contained in the indentures applicable to each notes payable or the credit agreement for our line of credit. The Debt Covenant Compliance ratios that are provided show the Company's compliance with certain covenants governing our public unsecured debt. These covenants generally reflect our most restrictive financial covenants. The Company was in compliance with its unsecured debt covenants for all periods presented.

Development Yield – NOI that the Company anticipates receiving in the next 12 months following stabilization less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $50-$150 per apartment unit depending on the type of asset) divided by the Total Budgeted Capital Cost of the asset. The weighted average Development Yield for development properties is weighted based on the projected NOI streams and the relative Total Budgeted Capital Cost for each respective property.

Disposition Yield – NOI that the Company anticipates giving up in the next 12 months less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $150-$450 per apartment unit depending on the age and condition of the asset) divided by the gross sales price of the asset. The weighted average Disposition Yield for sold properties is weighted based on the projected NOI streams and the relative sales price for each respective property.

Earnings Per Share ("EPS") – Net income per share calculated in accordance with GAAP. Expected EPS is calculated on a basis consistent with actual EPS. Due to the uncertain timing and extent of property dispositions and the resulting gains/losses on sales, actual EPS could differ materially from expected EPS.

EBITDA for Real Estate and Normalized EBITDA for Real Estate:

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”) – The National Association of Real Estate Investment Trusts (“Nareit”) defines EBITDAre (September 2017 White Paper) as net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for gains and losses from sales of depreciated operating properties, impairment write-downs of depreciated operating properties, impairment write-downs of investments in unconsolidated entities caused by a decrease in value of depreciated operating properties within the joint venture and adjustments to reflect the Company’s share of EBITDAre of investments in unconsolidated entities.

The Company believes that EBITDAre is useful to investors, creditors and rating agencies as a supplemental measure of the Company’s ability to incur and service debt because it is a recognized measure of performance by the real estate industry, and by excluding gains or losses related to sales or impairment of depreciated operating properties, EBITDAre can help compare the Company’s credit strength between periods or as compared to different companies.

Normalized Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“Normalized EBITDAre”) – Represents net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for non-comparable items. Normalized EBITDAre, total debt to Normalized EBITDAre and net debt to Normalized EBITDAre are important metrics in evaluating the credit strength of the Company and its ability to service its debt obligations. The Company believes that Normalized EBITDAre, total debt to Normalized EBITDAre, and net debt to Normalized EBITDAre are useful to investors, creditors and rating agencies because they allow investors to compare the Company’s credit strength to prior reporting periods and to other 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 credit quality.

Economic Gain (Loss) – Economic Gain (Loss) is calculated as the net gain (loss) on sales of real estate properties in accordance with GAAP, excluding accumulated depreciation. The Company generally considers Economic Gain (Loss) to be an appropriate supplemental measure to net gain (loss) on sales of real estate properties in accordance with GAAP because it is one indication of the gross value created by the Company's acquisition, development, renovation, management and ultimate sale of a property and because it helps investors to understand the relationship between the cash proceeds from a sale and the cash invested in the sold property. The following table presents a reconciliation of net gain (loss) on sales of real estate properties in accordance with GAAP to Economic Gain (Loss):

Nine Months Ended September 30, 2024

Quarter Ended September 30, 2024

Net Gain (Loss) on Sales of Real Estate Properties

$

227,829

$

(165

)

Accumulated Depreciation Gain

(111,596

)

(14,921

)

Economic Gain (Loss)

$

116,233

$

(15,086

)

Established Markets – Includes Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California (Los Angeles, Orange County and San Diego).

Expansion Markets – Includes Denver, Atlanta, Dallas/Ft. Worth and Austin.

FFO and Normalized FFO:

Funds From Operations (“FFO”) – Nareit defines FFO (December 2018 White Paper) as net income (computed in accordance with GAAP), excluding gains or losses from sales and impairment write-downs of depreciable real estate and land when connected to the main business of a REIT, impairment write-downs of investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity and depreciation and amortization related to real estate. Adjustments for partially owned consolidated and unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. Expected FFO per share is calculated on a basis consistent with actual FFO per share and is considered an appropriate supplemental measure of expected operating performance when compared to expected EPS.

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 from sales and impairment write-downs of depreciable real estate and excluding depreciation related to real estate (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.

Normalized Funds From Operations ("Normalized FFO" or "NFFO") – Normalized FFO begins with FFO and excludes:

the impact of any expenses relating to non-operating real estate asset impairment;

pursuit cost write-offs;

gains and losses from early debt extinguishment and preferred share redemptions;

gains and losses from non-operating assets; and

other miscellaneous items.

Expected Normalized FFO per share is calculated on a basis consistent with actual Normalized FFO per share and is considered an appropriate supplemental measure of expected operating performance when compared to expected EPS.

The Company 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.

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 GAAP. 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.

The following table presents reconciliations of EPS to FFO per share and Normalized FFO per share for Consolidated Statements of Funds From Operations and Normalized Funds From Operations.

Actual Sept.

Actual Sept.

Actual

Actual

Expected

Expected

YTD 2024

YTD 2023

Q3 2024

Q3 2023

Q4 2024

2024

Per Share

Per Share

Per Share

Per Share

Per Share

Per Share

EPS – Diluted

$

1.62

$

1.38

$

0.38

$

0.45

$1.01 to $1.05

$2.63 to $2.67

Depreciation expense

1.76

1.68

0.61

0.57

0.67

2.43

Net (gain) loss on sales

(0.59

)

(0.32

)

—

(0.06

)

(0.73

)

(1.32

)

Impairment – operating real estate assets

—

—

—

—

—

—

FFO per share – Diluted

2.79

2.74

0.99

0.96

0.95 to 0.99

3.74 to 3.78

Adjustments (1):

Impairment – non-operating real estate assets

—

—

—

—

—

—

Write-off of pursuit costs

—

0.01

—

—

—

0.01

Debt extinguishment and preferred

share redemption (gains) losses

—

—

—

—

—

—

Non-operating asset (gains) losses

(0.04

)

(0.01

)

(0.04

)

(0.01

)

—

(0.04

)

Other miscellaneous items

0.14

0.04

0.03

0.01

0.03

0.16

Normalized FFO per share – Diluted

$

2.89

$

2.78

$

0.98

$

0.96

$0.98 to $1.02

$3.87 to $3.91

(1) See Adjustments from FFO to Normalized FFO for additional detail.

Lease-Up NOI – Represents NOI for development properties: (i) in various stages of lease-up; and (ii) where lease-up has been completed but the properties were not stabilized (defined as having achieved 90% occupancy for three consecutive months) for all of the current and comparable periods presented.

Leasing Concessions – Reflects upfront discounts on both new move-in and renewal leases on a straight-line basis.

Net Operating Income (“NOI”) – NOI is the Company’s primary financial measure for evaluating each of its apartment properties. NOI is defined as rental income less direct property operating expenses (including real estate taxes and insurance). 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 properties. NOI does not include an allocation of property management expenses either in the current or comparable periods. Rental income for all leases and operating expense for ground leases (for both same store and non-same store properties) are reflected on a straight-line basis in accordance with GAAP for the current and comparable periods.

The following tables present reconciliations of net income per the consolidated statements of operations to NOI, along with rental income, operating expenses and NOI per the consolidated statements of operations allocated between same store and non-same store/other results and further allocated between Residential same store and Non-Residential same store results (see Same Store Results):

Nine Months Ended September 30,

Quarter Ended September 30,

2024

2023

2024

2023

Net income

$

637,104

$

546,219

$

148,517

$

181,286

Adjustments:

Property management

100,381

90,314

31,412

28,169

General and administrative

48,902

49,135

14,551

14,094

Depreciation

688,041

661,921

237,948

224,736

Net (gain) loss on sales of real estate properties

(227,829

)

(127,034

)

165

(26,912

)

Interest and other income

(26,501

)

(11,296

)

(15,844

)

(7,627

)

Other expenses

59,094

20,517

13,971

4,958

Interest:

Expense incurred, net

205,762

200,882

72,722

68,891

Amortization of deferred financing costs

5,784

7,023

1,948

3,027

Income and other tax expense (benefit)

925

892

290

258

(Income) loss from investments in unconsolidated entities

4,865

3,847

1,493

1,242

Total NOI

$

1,496,528

$

1,442,420

$

507,173

$

492,122

Nine Months Ended September 30,

Quarter Ended September 30,

Rental income:

2024

2023

2024

2023

Residential same store

$

2,069,756

$

2,007,129

$

696,686

$

679,652

Non-Residential same store

81,519

76,578

25,622

23,718

Total same store

2,151,275

2,083,707

722,308

703,370

Non-same store/other

62,054

62,757

26,040

20,697

Total rental income

2,213,329

2,146,464

748,348

724,067

Operating expenses:

Residential same store

661,935

647,350

222,696

216,121

Non-Residential same store

22,407

21,283

7,402

6,926

Total same store

684,342

668,633

230,098

223,047

Non-same store/other

32,459

35,411

11,077

8,898

Total operating expenses

716,801

704,044

241,175

231,945

NOI:

Residential same store

1,407,821

1,359,779

473,990

463,531

Non-Residential same store

59,112

55,295

18,220

16,792

Total same store

1,466,933

1,415,074

492,210

480,323

Non-same store/other

29,595

27,346

14,963

11,799

Total NOI

$

1,496,528

$

1,442,420

$

507,173

$

492,122

New Lease Change – The net effective change in rent (inclusive of Leasing Concessions) for a lease with a new or transferring resident compared to the rent for the prior lease of the identical apartment unit, regardless of lease term.

Non-Residential – Consists of revenues and expenses from retail and public parking garage operations.

Non-Same Store Properties – For annual comparisons, primarily includes all properties acquired during 2023 and 2024, plus any properties in lease-up and not stabilized as of January 1, 2023. Unless otherwise noted, includes both Residential and Non-Residential operations for these properties.

Percentage of Residents Renewing – Leases renewed expressed as a percentage of total renewal offers extended during the reporting period.

Physical Occupancy – The weighted average occupied apartment units for the reporting period divided by the average of total apartment units available for rent for the reporting period.

Pricing Trend – Weighted average of 12-month base rent including amenity amount less Leasing Concessions on 12-month signed leases for the reporting period.

Renewal Rate Achieved – The net effective change in rent (inclusive of Leasing Concessions) for a new lease on an apartment unit where the lease has been renewed as compared to the rent for the prior lease of the identical apartment unit, regardless of lease term.

Residential – Consists of multifamily apartment revenues and expenses.

Same Store Operating Expenses:

Insurance – Includes third-party insurance premiums, broker fees and other insurance-related procurement fees along with an allocation of estimated uninsured losses.

On-site Payroll – Includes payroll and related expenses for on-site personnel including property managers, leasing consultants and maintenance staff.

Other On-site Operating Expenses – Includes ground lease costs and administrative costs such as office supplies, telephone and data charges and association and business licensing fees.

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 and maintenance costs.

Utilities – Represents gross expenses prior to any recoveries under the Resident Utility Billing System (“RUBS”). Recoveries are reflected in rental income.

Same Store Properties – For annual comparisons, primarily includes all properties acquired or completed that are stabilized prior to January 1, 2023, less properties subsequently sold. Properties are included in Same Store when they are stabilized for all of the current and comparable periods presented. Unless otherwise noted, includes both Residential and Non-Residential operations for these properties.

Same Store Residential Revenues – Revenues from our Residential Same Store Properties only presented on a GAAP basis which reflects the impact of Leasing Concessions on a straight-line basis.

Same Store Residential Revenues with Leasing Concessions on a cash basis is presented in Same Store Results and is considered by the Company to be a supplemental measure to Same Store Residential Revenues in conformity with GAAP to help investors evaluate the impact of both current and historical Leasing Concessions on GAAP-based Same Store Residential Revenues and to more readily enable comparisons to revenue as reported by other companies. Same Store Residential Revenues with Leasing Concessions on a cash basis reflects the impact of Leasing Concessions used in the period and allows an investor to understand the historical trend in cash Leasing Concessions.

% of Stabilized Budgeted NOI – Represents original budgeted 2024 NOI for stabilized properties and projected annual NOI at stabilization (defined as having achieved 90% occupancy for three consecutive months) for properties that are in lease-up.

Total Budgeted Capital Cost – Estimated remaining cost for projects under development and/or developed plus all capitalized costs incurred to date, including land acquisition costs, construction costs, capitalized real estate taxes and insurance, capitalized interest and loan fees, permits, professional fees, allocated development overhead and other regulatory fees, plus any estimates of costs remaining to be funded for all projects, all in accordance with GAAP. Amounts for partially owned consolidated and unconsolidated properties are presented at 100% of the project.

Total Market Capitalization – The aggregate of the market value of the Company’s outstanding common shares, including restricted shares, the market value of the Company’s operating partnership units outstanding, including restricted units (based on the market value of the Company’s common shares) and the outstanding principal balance of debt. The Company believes this is a useful measure of a real estate operating company’s long-term liquidity and balance sheet strength, because it shows an approximate relationship between a company’s total debt and the current total market value of its assets based on the current price at which the Company’s common shares trade. However, because this measure of leverage changes with fluctuations in the Company’s share price, which occur regularly, this measure may change even when the Company’s earnings, interest and debt levels remain stable.

Traffic – Consists of an expression of interest in an apartment by completing an in-person tour, self-guided tour or virtual tour that may result in an application to lease.

Transaction Accretion (Dilution) – Represents the spread between the Acquisition Cap Rate and the Disposition Yield.

Turnover – Total Residential move-outs (including inter-property and intra-property transfers) divided by total Residential apartment units.

Unencumbered NOI % – Represents NOI generated by consolidated real estate assets unencumbered by outstanding secured debt as a percentage of total NOI generated by all of the Company's consolidated real estate assets.

Weighted Average Coupons – Contractual interest rate for each debt instrument weighted by principal balances as of September 30, 2024. In case of debt for which fair value hedges are in place, the rate payable under the corresponding derivatives is used in lieu of the contractual interest rate.

Weighted Average Rates – Interest expense for each debt instrument for the nine months ended September 30, 2024 weighted by its average principal balance for the same period. Interest expense includes amortization of premiums, discounts and other comprehensive income on debt and related derivative instruments. In case of debt for which derivatives are in place, the income or expense recognized under the corresponding derivatives is included in the total interest expense for the period.

View source version on businesswire.com:https://www.businesswire.com/news/home/20241030322876/en/

CONTACT: Marty McKenna

312-928-1901

mmckenna@eqr.com

KEYWORD: ILLINOIS UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: COMMERCIAL BUILDING & REAL ESTATE CONSTRUCTION & PROPERTY FINANCE PROFESSIONAL SERVICES URBAN PLANNING REIT OTHER CONSTRUCTION & PROPERTY RESIDENTIAL BUILDING & REAL ESTATE

SOURCE: Equity Residential

PUB: 10/30/2024 04:15 PM/DISC: 10/30/2024 04:17 PM

http://www.businesswire.com/news/home/20241030322876/en

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

	Nine Months Ended September 30,		Quarter Ended September 30,
	2024		2023	2024		2023
REVENUES
Rental income	$	2,213,329		$	2,146,464		$	748,348		$	724,067

EXPENSES
Property and maintenance		396,349			391,437			135,221			129,087
Real estate taxes and insurance		320,452			312,607			105,954			102,858
Property management		100,381			90,314			31,412			28,169
General and administrative		48,902			49,135			14,551			14,094
Depreciation		688,041			661,921			237,948			224,736
Total expenses		1,554,125			1,505,414			525,086			498,944

Net gain (loss) on sales of real estate properties		227,829			127,034			(165	)		26,912
Interest and other income		26,501			11,296			15,844			7,627
Other expenses		(59,094	)		(20,517	)		(13,971	)		(4,958	)
Interest:
Expense incurred, net		(205,762	)		(200,882	)		(72,722	)		(68,891	)
Amortization of deferred financing costs		(5,784	)		(7,023	)		(1,948	)		(3,027	)
Income before income and other taxes, income (loss) from
investments in unconsolidated entities and net gain (loss)
on sales of land parcels		642,894			550,958			150,300			182,786
Income and other tax (expense) benefit		(925	)		(892	)		(290	)		(258	)
Income (loss) from investments in unconsolidated entities		(4,865	)		(3,847	)		(1,493	)		(1,242	)
Net income		637,104			546,219			148,517			181,286
Net (income) loss attributable to Noncontrolling Interests:
Operating Partnership		(17,290	)		(17,174	)		(4,012	)		(5,561	)
Partially Owned Properties		(3,098	)		(5,299	)		(1,059	)		(3,217	)
Net income attributable to controlling interests		616,716			523,746			143,446			172,508
Preferred distributions		(1,258	)		(2,318	)		(356	)		(773	)
Premium on redemption of Preferred Shares		(1,444	)		—			—			—
Net income available to Common Shares	$	614,014		$	521,428		$	143,090		$	171,735

Earnings per share – basic:
Net income available to Common Shares	$	1.62		$	1.38		$	0.38		$	0.45
Weighted average Common Shares outstanding		378,718			378,614			378,756			378,853

Earnings per share – diluted:
Net income available to Common Shares	$	1.62		$	1.38		$	0.38		$	0.45
Weighted average Common Shares outstanding		390,688			391,135			391,026			391,351

Distributions declared per Common Share outstanding	$	2.025		$	1.9875		$	0.675		$	0.6625

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

	Nine Months Ended September 30,		Quarter Ended September 30,
	2024		2023	2024		2023
Net income	$	637,104		$	546,219		$	148,517		$	181,286
Net (income) loss attributable to Noncontrolling Interests – Partially
Owned Properties	(3,098	)		(5,299	)		(1,059	)		(3,217	)
Preferred distributions		(1,258	)		(2,318	)		(356	)		(773	)
Premium on redemption of Preferred Shares		(1,444	)		—			—			—
Net income available to Common Shares and Units		631,304			538,602			147,102			177,296

Adjustments:
Depreciation		688,041			661,921			237,948			224,736
Depreciation – Non-real estate additions		(2,839	)		(3,291	)		(942	)		(1,032	)
Depreciation – Partially Owned Properties		(1,645	)		(1,599	)		(556	)		(544	)
Depreciation – Unconsolidated Properties		3,881			1,921			2,429			695
Net (gain) loss on sales of unconsolidated entities - operating assets		(710	)		—			(710	)		—
Net (gain) loss on sales of real estate properties		(227,829	)		(127,034	)		165			(26,912	)
Noncontrolling Interests share of gain (loss) on sales
of real estate properties		—			2,336			—			2,336
FFO available to Common Shares and Units		1,090,203			1,072,856			385,436			376,575

Adjustments (see note for additional detail):
Write-off of pursuit costs		1,905			2,739			536			746
Debt extinguishment and preferred share redemption (gains) losses		1,444			1,143			—			1,096
Non-operating asset (gains) losses		(17,452	)		(4,735	)		(14,236	)		(5,766	)
Other miscellaneous items		53,432			14,831			12,758			3,488
Normalized FFO available to Common Shares and Units	$	1,129,532		$	1,086,834		$	384,494		$	376,139

FFO	$	1,092,905		$	1,075,174		$	385,792		$	377,348
Preferred distributions		(1,258	)		(2,318	)		(356	)		(773	)
Premium on redemption of Preferred Shares		(1,444	)		—			—			—
FFO available to Common Shares and Units	$	1,090,203		$	1,072,856		$	385,436		$	376,575
FFO per share and Unit – basic	$	2.80		$	2.75		$	0.99		$	0.97
FFO per share and Unit – diluted	$	2.79		$	2.74		$	0.99		$	0.96

Normalized FFO	$	1,130,790		$	1,089,152		$	384,850		$	376,912
Preferred distributions		(1,258	)		(2,318	)		(356	)		(773	)
Normalized FFO available to Common Shares and Units	$	1,129,532		$	1,086,834		$	384,494		$	376,139
Normalized FFO per share and Unit – basic	$	2.90		$	2.79		$	0.99		$	0.96
Normalized FFO per share and Unit – diluted	$	2.89		$	2.78		$	0.98		$	0.96

Weighted average Common Shares and Units outstanding – basic	389,379			389,991			389,379			390,087
Weighted average Common Shares and Units outstanding – diluted	390,688			391,135			391,026			391,351

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

	September 30,		December 31,
	2024		2023
ASSETS
Land	$	5,675,037		$	5,581,876
Depreciable property		24,148,043			22,938,426
Projects under development		222,055			78,036
Land held for development		65,113			114,300
Investment in real estate		30,110,248			28,712,638
Accumulated depreciation		(10,386,783	)		(9,810,337	)
Investment in real estate, net		19,723,465			18,902,301
Investments in unconsolidated entities 1		359,810			282,049
Cash and cash equivalents		28,610			50,743
Restricted deposits		97,949			89,252
Right-of-use assets		458,673			457,266
Other assets		257,314			252,953
Total assets	$	20,925,821		$	20,034,564

LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net	$	1,633,414		$	1,632,902
Notes, net		5,945,670			5,348,417
Line of credit and commercial paper		786,561			409,131
Accounts payable and accrued expenses		165,787			87,377
Accrued interest payable		50,633			65,716
Lease liabilities		306,119			311,640
Other liabilities		294,543			272,596
Security deposits		74,350			69,178
Distributions payable		263,425			259,231
Total liabilities		9,520,502			8,456,188

Commitments and contingencies

Redeemable Noncontrolling Interests – Operating Partnership		351,803			289,248
Equity:
Shareholders' equity:
Preferred Shares of beneficial interest, $0.01 par value;
100,000,000 shares authorized; 343,100 shares issued and
outstanding as of September 30, 2024 and 745,600 shares issued
and outstanding as of December 31, 2023		17,155			37,280
Common Shares of beneficial interest, $0.01 par value;
1,000,000,000 shares authorized; 379,354,738 shares issued
and outstanding as of September 30, 2024 and 379,291,417
shares issued and outstanding as of December 31, 2023		3,794			3,793
Paid in capital		9,584,539			9,601,866
Retained earnings		1,244,953			1,437,185
Accumulated other comprehensive income (loss)		3,534			5,704
Total shareholders’ equity		10,853,975			11,085,828
Noncontrolling Interests:
Operating Partnership		199,206			202,306
Partially Owned Properties		335			994
Total Noncontrolling Interests		199,541			203,300
Total equity		11,053,516			11,289,128
Total liabilities and equity	$	20,925,821		$	20,034,564

1 Includes $297.5 million and $220.2 million in unconsolidated projects (primarily development) as of September 30, 2024 and December 31, 2023, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects.

							% of Stabilized		Average
				Apartment		Budgeted		Rental
Markets/Metro Areas	Properties		Units		NOI		Rate
Established Markets:
Los Angeles		58				14,732				16.7	%	$	2,943
Orange County		12				3,718				4.9	%		2,937
San Diego		12				2,878				3.9	%		3,127
Subtotal – Southern California		82				21,328				25.5	%		2,967

Washington, D.C.		46				14,728				15.6	%		2,761
San Francisco		41				11,410				14.6	%		3,343
New York		34				8,536				13.8	%		4,669
Boston		27				7,237				11.6	%		3,612
Seattle		44				9,267				10.1	%		2,636
Subtotal – Established Markets		274				72,506				91.2	%		3,209

Expansion Markets:
Denver		14				4,181				3.9	%		2,350
Atlanta		12				3,788				2.9	%		2,020
Dallas/Ft. Worth		9				2,802				1.6	%		1,903
Austin		3				741				0.4	%		1,780
Subtotal – Expansion Markets		38				11,512				8.8	%		2,096
Total		312				84,018				100.0	%	$	3,058


	Properties	Apartment Units
Wholly Owned Properties	297	80,749
Partially Owned Properties – Consolidated	14	3,060
Partially Owned Properties – Unconsolidated	1	209
	312	84,018

Note: Projects under development are not included in the Portfolio Summary until construction has been completed.

Portfolio Rollforward Q3 2024
($ in thousands)

	Properties		Apartment Units	Purchase Price		Acquisition Cap Rate
6/30/2024		299			79,738
Acquisitions:
Consolidated Rental Properties		14			4,418		$	1,255,250		5.1	%

						Sales Price	Disposition Yield
Dispositions:
Consolidated Rental Properties		(1	)		(138	)	$	(31,500	)	(6.1	%)

9/30/2024		312			84,018

Portfolio Rollforward 2024
($ in thousands)

	Properties		Apartment Units	Purchase Price		Acquisition Cap Rate
12/31/2023		302			80,191
Acquisitions:
Consolidated Rental Properties		14			4,418		$	1,255,250		5.1	%
Consolidated Rental Properties – Not Stabilized (1)		1			160		$	62,595		5.7	%
Unconsolidated Land Parcels (2)		—			—		$	33,394

						Sales Price	Disposition Yield
Dispositions:
Consolidated Rental Properties		(6	)		(969	)	$	(365,500	)	(5.7	%)

Completed Developments – Unconsolidated		1			209
Configuration Changes		—			9
9/30/2024		312			84,018

Third Quarter 2024 vs. Third Quarter 2023
Same Store Results/Statistics Including 77,203 Same Store Apartment Units
(includes Residential and Non-Residential)
($ in thousands except for Average Rental Rate)

	Results		Statistics
Description	Revenues		Expenses	NOI		Average Rental Rate	Physical Occupancy		Turnover
Q3 2024	$	722,308		$	230,098		$	492,210		$	3,132		96.1	%	13.3	%
Q3 2023	$	703,370		$	223,047		$	480,323		$	3,060		96.0	%	13.8	%
Change	$	18,938		$	7,051		$	11,887		$	72		0.1	%	(0.5	%)

Change		2.7	%		3.2	%		2.5	%		2.4	%

Same Store Residential Revenues – GAAP to Cash Basis (1)
($ in thousands)

	Third Quarter 2024 vs. Third Quarter 2023		Third Quarter 2024 vs. Second Quarter 2024	Sept. YTD 2024 vs. Sept. YTD 2023
	77,203 Same Store Apartment Units		78,633 Same Store Apartment Units	76,916 Same Store Apartment Units
	Q3 2024		Q3 2023	Q3 2024		Q2 2024	Sept. YTD 2024		Sept. YTD 2023
Same Store Residential Revenues (GAAP Basis)	$	696,686		$	679,652		$	706,030		$	701,912			$	2,069,756		$	2,007,129
Leasing Concessions amortized		4,903			4,065			5,277			5,326				14,859			9,997
Leasing Concessions granted (2)		(5,891	)		(5,387	)		(6,187	)		(4,070	)			(14,503	)		(13,538	)
Same Store Residential Revenues with Leasing Concessions on a cash basis	$	695,698		$	678,330		$	705,120		$	703,168			$	2,070,112		$	2,003,588

% change - GAAP revenue		2.5	%				0.6	%					3.1	%

% change - cash revenue		2.6	%				0.3	%					3.3	%

(1)	See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.
(2)	Concession usage is primarily concentrated in San Francisco, Los Angeles, Seattle and the Expansion Markets. Material declines for the nine months ended September 30, 2024 in Leasing Concessions granted in Seattle and San Francisco have been offset by increases in Los Angeles and the Expansion Markets in the same period.

Same Store Net Operating Income By Quarter
Including 76,916 Same Store Apartment Units
(includes Residential and Non-Residential)
($ in thousands)

	Q3 2024		Q2 2024	Q1 2024		Q4 2023	Q3 2023
Same store revenues	$	720,371		$	717,335		$	713,569	$	705,600	$	701,423
Same store expenses		229,559			224,220			230,563		216,667		222,586
Same store NOI	$	490,812		$	493,115		$	483,006	$	488,933	$	478,837

(1)	Total same store Residential Leasing Concessions granted in the third quarter of 2024 were approximately $5.9 million. The straight-line receivable balance of $8.1 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in the remainder of 2024 and the first three quarters of 2025.

Same Store Residential Bad Debt
Including 76,916 Same Store Apartment Units
($ in thousands)

Income Statement (Rental income):	Q3 2024		Q2 2024	Q3 2023
Bad debts before governmental rental assistance	$	7,697		$	8,079	$	9,092
Governmental rental assistance received	(295	)		(426	)	(410	)
Bad Debt, Net	$	7,402		$	7,653	$	8,682

Bad Debt, Net as a % of Same Store Residential Revenues	1.1	%		1.1	%	1.3	%

													Increase (Decrease) from Prior Year's Quarter
Markets/Metro Areas	Apartment Units		Q3 2024 % of Actual NOI	Q3 2024 Average Rental Rate		Q3 2024 Weighted Average Physical Occupancy %	Q3 2024 Turnover		Revenues	Expenses		NOI		Average Rental Rate		Physical Occupancy	Turnover
Los Angeles		14,135			17.2	%	$	2,940			95.5	%			12.5	%		1.2	%		3.7	%			0.2	%		1.5	%		(0.2	%)		0.2	%
Orange County		3,718			5.1	%		2,937			96.1	%			10.7	%		2.7	%		6.7	%			1.5	%		3.3	%		(0.6	%)		(0.2	%)
San Diego		2,878			4.2	%		3,127			95.7	%			12.5	%		2.5	%		3.9	%			2.1	%		2.1	%		0.4	%		0.0	%
Subtotal – Southern California	20,731			26.5	%		2,965			95.6	%			12.1	%		1.7	%		4.1	%			0.7	%		1.9	%		(0.2	%)		0.1	%

Washington, D.C.		14,416			16.4	%		2,764			96.6	%			14.1	%		4.2	%		7.8	%			2.5	%		4.4	%		(0.2	%)		(0.4	%)
San Francisco		11,188			15.8	%		3,347			95.8	%			12.7	%		1.2	%		1.6	%			1.0	%		0.9	%		0.2	%		(0.5	%)
New York		8,536			14.5	%		4,669			97.4	%			11.0	%		3.9	%		3.9	%			3.9	%		3.1	%		0.9	%		(1.7	%)
Boston		7,077			11.2	%		3,627			96.1	%			14.9	%		3.2	%		0.4	%			4.3	%		3.1	%		0.0	%		(1.0	%)
Seattle		9,266			10.4	%		2,635			96.1	%			13.8	%		3.3	%		4.9	%			2.6	%		2.4	%		0.9	%		(0.5	%)
Denver		2,792			2.8	%		2,403			95.8	%			17.8	%		(0.9	%)		2.0	%			(2.1	%)		0.0	%		(0.7	%)		(0.4	%)
Other Expansion Markets		3,197			2.4	%		1,931			95.1	%			16.4	%		(2.6	%)		(21.2	%)	(1)		11.5	%		(3.2	%)		0.5	%		(1.6	%)

Total		77,203			100.0	%	$	3,132			96.1	%			13.3	%		2.5	%		3.0	%			2.3	%		2.4	%		0.1	%		(0.5	%)

(1)	Expense decline primarily due to favorable Texas real estate taxes.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.3% of total revenues for the nine months ended September 30, 2024.

													Increase (Decrease) from Prior Quarter
Markets/Metro Areas	Apartment Units		Q3 2024 % of Actual NOI	Q3 2024 Average Rental Rate		Q3 2024 Weighted Average Physical Occupancy %	Q3 2024 Turnover		Revenues	Expenses		NOI		Average Rental Rate		Physical Occupancy	Turnover
Los Angeles		14,135			17.0	%	$	2,940			95.5	%			12.5	%		0.0	%		5.3	%			(2.3	%)		0.2	%		(0.2	%)		0.8	%
Orange County		3,718			5.1	%		2,937			96.1	%			10.7	%		1.0	%		4.5	%			0.0	%		0.8	%		0.2	%		(0.1	%)
San Diego		2,878			4.1	%		3,127			95.7	%			12.5	%		(0.2	%)		4.7	%			(1.6	%)		0.0	%		(0.2	%)		0.9	%
Subtotal – Southern California	20,731			26.2	%		2,965			95.6	%			12.1	%		0.1	%		5.1	%			(1.7	%)		0.3	%		(0.2	%)		0.6	%

Washington, D.C.		14,728			16.4	%		2,761			96.6	%			14.0	%		1.6	%		6.6	%			(0.7	%)		1.9	%		(0.3	%)		2.5	%
San Francisco		11,410			15.9	%		3,342			95.8	%			12.6	%		0.5	%		6.6	%			(2.0	%)		0.7	%		(0.3	%)		1.0	%
New York		8,536			14.3	%		4,669			97.4	%			11.0	%		1.3	%		0.1	%			2.1	%		1.3	%		0.0	%		1.5	%
Boston		7,077			11.1	%		3,627			96.1	%			14.9	%		(0.2	%)		0.2	%			(0.3	%)		0.5	%		(0.6	%)		3.5	%
Seattle		9,266			10.3	%		2,635			96.1	%			13.8	%		1.0	%		0.2	%			1.4	%		1.2	%		(0.2	%)		1.4	%
Denver		2,792			2.8	%		2,403			95.8	%			17.8	%		(1.5	%)		5.3	%			(4.3	%)		(0.6	%)		(1.0	%)		3.8	%
Other Expansion Markets		4,093			3.0	%		1,934			95.1	%			16.1	%		(1.2	%)		(19.8	%)	(1)		13.3	%		(1.4	%)		0.2	%		0.3	%

Total		78,633			100.0	%	$	3,116			96.1	%			13.3	%		0.6	%		2.4	%			(0.3	%)		0.8	%		(0.2	%)		1.6	%

													Increase (Decrease) from Prior Year
Markets/Metro Areas	Apartment Units		Sept. YTD 24 % of Actual NOI	Sept. YTD 24 Average Rental Rate		Sept. YTD 24 Weighted Average Physical Occupancy %	Sept. YTD 24 Turnover		Revenues	Expenses		NOI		Average Rental Rate		Physical Occupancy	Turnover
Los Angeles		14,135			17.5	%	$	2,932			95.6	%			33.7	%		3.2	%		2.2	%			3.7	%		3.0	%		0.2	%		0.1	%
Orange County		3,718			5.2	%		2,917			96.0	%			28.9	%		4.1	%		4.6	%			3.9	%		4.3	%		(0.3	%)		0.0	%
San Diego		2,878			4.2	%		3,119			95.9	%			32.1	%		4.5	%		1.9	%			5.2	%		4.0	%		0.4	%		0.0	%
Subtotal – Southern California	20,731			26.9	%		2,955			95.7	%			32.6	%		3.6	%		2.5	%			4.0	%		3.4	%		0.1	%		0.0	%

Washington, D.C.		14,416			16.5	%		2,716			96.9	%			32.6	%		4.8	%		2.8	%			5.8	%		4.6	%		0.2	%		0.1	%
San Francisco		11,188			15.9	%		3,321			96.2	%			33.8	%		1.5	%		0.6	%			1.9	%		1.0	%		0.5	%		0.3	%
New York		8,536			14.3	%		4,624			97.3	%			27.1	%		3.6	%		4.0	%			3.4	%		3.1	%		0.5	%		(3.2	%)
Boston		7,077			11.2	%		3,597			96.2	%			33.8	%		4.1	%		0.9	%			5.4	%		3.9	%		0.2	%		(1.7	%)
Seattle		9,266			10.4	%		2,602			96.2	%			36.0	%		1.7	%		4.9	%			0.5	%		0.7	%		1.0	%		(3.8	%)
Denver		2,505			2.6	%		2,418			96.3	%			42.7	%		0.4	%		0.1	%			0.6	%		0.8	%		0.0	%		(3.9	%)
Other Expansion Markets		3,197			2.2	%		1,958			95.2	%			45.8	%		(0.8	%)		(6.8	%)	(1)		3.9	%		(1.4	%)		0.4	%		0.9	%

Total		76,916			100.0	%	$	3,108			96.3	%			33.5	%		3.1	%		2.3	%			3.5	%		2.7	%		0.4	%		(1.1	%)

Same Store Residential Net Effective Lease Pricing Statistics
For 76,916 Same Store Apartment Units

	New Lease Change (1)		Renewal Rate Achieved (1)		Blended Rate (1)
Markets/Metro Areas	Q3 2024		Q2 2024		Q3 2024		Q2 2024	Q3 2024		Q2 2024
Southern California		(2.7	%)	(2)		(2.4	%)		4.2	%	4.5	%	0.9	%	1.4	%
Washington, D.C.		2.3	%			4.8	%		5.2	%	6.7	%	3.9	%	5.9	%
San Francisco		(1.2	%)			0.4	%		5.2	%	5.1	%	2.0	%	2.9	%
New York		0.9	%			3.5	%		4.1	%	4.4	%	2.9	%	4.0	%
Boston		1.5	%			0.3	%		5.1	%	5.0	%	3.6	%	3.0	%
Seattle		(3.8	%)			0.5	%		4.8	%	5.3	%	0.9	%	3.3	%
Subtotal – Established Markets		(0.5	%)			0.9	%		4.7	%	5.1	%	2.4	%	3.3	%

Denver		(10.0	%)			(4.6	%)		4.3	%	3.9	%	(3.1	%)	(0.5	%)
Other Expansion Markets		(13.6	%)			(12.5	%)		1.2	%	2.7	%	(6.8	%)	(6.2	%)
Subtotal – Expansion Markets		(11.8	%)			(9.1	%)		2.8	%	3.3	%	(4.9	%)	(3.5	%)
Total		(1.2	%)			0.2	%		4.6	%	5.0	%	2.0	%	2.9	%

(1)	See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions.
(2)	As previously mentioned, New Lease Change in the city of Los Angeles decelerated more quickly than expected during the third quarter of 2024. Performance in the city of Los Angeles has improved thus far in the fourth quarter of 2024.

Third Quarter 2024 vs. Third Quarter 2023
Total Same Store Operating Expenses Including 77,203 Same Store Apartment Units
(includes Residential and Non-Residential)
($ in thousands)

	Q3 2024		Q3 2023	$ Change		% Change	% of Q3 2024 Operating Expenses
Real estate taxes	$	92,513		$	90,731		$	1,782		2.0	%	40.2	%
On-site payroll		43,732			44,066			(334	)	(0.8	%)	19.0	%
Utilities		36,838			34,023			2,815		8.3	%	16.0	%
Repairs and maintenance		32,121			31,043			1,078		3.5	%	14.0	%
Insurance		9,223			8,438			785		9.3	%	4.0	%
Leasing and advertising		2,948			2,784			164		5.9	%	1.3	%
Other on-site operating expenses		12,723			11,962			761		6.4	%	5.5	%
Total Same Store Operating Expenses (2)	$	230,098		$	223,047		$	7,051		3.2	%	100.0	%

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10kInfo, Inc.

10kInfo Data Solutions, Pvt Ltd.

Equity Residential Reports Third Quarter 2024 Results

Candorium Free Members

Free Member Benefits:

(1)	The year-over-year changes were primarily driven by the following factors:

	Real estate taxes – Increase due to escalation in rates and assessed values including an approximately one percentage point contribution to growth from 421-a tax abatement burnoffs in New York City. Once the burnoffs are completed, previously rent-restricted apartment units will transition to market.

	On-site payroll – No change as higher wages were offset by the impact of various innovation initiatives.

	Utilities – Increase primarily driven by higher water, sewer and trash expense, partially offset by lower commodity prices for gas and electric.

	Repairs and maintenance – Modest growth benefiting from lower resident Turnover compared to the same period of 2023.

	Insurance – Increase due to higher premiums on property insurance renewal due to conditions in the insurance market that while less difficult than recent years, remain challenging.

	Other on-site operating expenses – Increase primarily driven by higher property-related legal expenses.

(2)	See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

Debt Summary as of September 30, 2024
($ in thousands)

	Debt Balances (1)		% of Total	Weighted Average Rates (1)		Weighted Average Maturities (years)
Secured	$	1,633,414			19.5	%	3.85	%	7.1
Unsecured		6,732,231			80.5	%	3.67	%	7.3
Total	$	8,365,645			100.0	%	3.71	%	7.3
Fixed Rate Debt:
Secured – Conventional	$	1,400,472			16.7	%	3.89	%	6.7
Unsecured – Public		5,945,670			71.1	%	3.52	%	8.2
Fixed Rate Debt		7,346,142			87.8	%	3.60	%	7.9
Floating Rate Debt:
Secured – Tax Exempt		232,942			2.8	%	3.62	%	10.0
Unsecured – Revolving Credit Facility		—			—		6.14	%	3.1
Unsecured – Commercial Paper Program (2)		786,561			9.4	%	5.51	%	—
Floating Rate Debt		1,019,503			12.2	%	4.85	%	2.4
Total	$	8,365,645			100.0	%	3.71	%	7.3

(1)	See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
(2)	At September 30, 2024, the weighted average maturity of commercial paper outstanding was 22 days. The weighted average amount outstanding for the nine months ended September 30, 2024 was approximately $420.5 million.

Note: The Company capitalized interest of approximately $10.7 million and $9.6 million during the nine months ended September 30, 2024 and 2023, respectively. The Company capitalized interest of approximately $3.8 million and $2.6 million during the quarters ended September 30, 2024 and 2023, respectively.

Debt Maturity Schedule as of September 30, 2024
($ in thousands)

Year	Fixed Rate		Floating Rate	Total		% of Total		Weighted Average Coupons on Fixed Rate Debt (1)		Weighted Average Coupons on Total Debt (1)
2024	$	—		$	792,700		(2)	$	792,700			9.4	%		—		5.11	%
2025		450,000			8,100				458,100			5.4	%		3.38	%	3.37	%
2026		592,025			9,000				601,025			7.1	%		3.58	%	3.58	%
2027		400,000			9,800				409,800			4.9	%		3.25	%	3.24	%
2028		900,000			10,700				910,700			10.8	%		3.79	%	3.78	%
2029		888,120			11,500				899,620			10.7	%		3.30	%	3.30	%
2030		1,148,462			12,700				1,161,162			13.8	%		2.53	%	2.54	%
2031		528,500			39,800				568,300			6.7	%		1.94	%	2.03	%
2032		—			28,100				28,100			0.3	%		—		2.93	%
2033		550,000			2,300				552,300			6.5	%		5.22	%	5.21	%
2034+		1,950,850			108,600				2,059,450			24.4	%		4.47	%	4.35	%
Subtotal		7,407,957			1,033,300				8,441,257			100.0	%		3.62	%	3.73	%
Deferred Financing Costs and Unamortized (Discount)		(61,815	)		(13,797	)			(75,612	)	N/A			N/A		N/A
Total	$	7,346,142		$	1,019,503			$	8,365,645			100.0	%		3.62	%	3.73	%

(1)	See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
(2)	Includes $789.0 million in principal outstanding on the Company's Commercial Paper Program.

Selected Unsecured Public Debt Covenants

	September 30,	June 30,
	2024	2024
Debt to Adjusted Total Assets (not to exceed 60%)	28.4%	25.6%

Secured Debt to Adjusted Total Assets (not to exceed 40%)	6.3%	6.7%

Consolidated Income Available for Debt Service to
Maximum Annual Service Charges
(must be at least 1.5 to 1)	5.97	6.68

Total Unencumbered Assets to Unsecured Debt
(must be at least 125%)	457.7%	534.8%

Selected Credit Ratios

	September 30,	June 30,
	2024	2024
Total debt to Normalized EBITDAre	4.60x	3.96x

Net debt to Normalized EBITDAre	4.56x	3.92x

Unencumbered NOI as a % of total NOI	89.7%	89.6%

Capital Structure as of September 30, 2024
(Amounts in thousands except for share/unit and per share amounts)

Secured Debt				$	1,633,414	19.5	%
Unsecured Debt					6,732,231	80.5	%
Total Debt					8,365,645	100.0	%		22.3	%
Common Shares (includes Restricted Shares)		379,354,738	97.0	%
Units (includes OP Units and Restricted Units)		11,562,954	3.0	%
Total Shares and Units		390,917,692	100.0	%
Common Share Price at September 30, 2024	$	74.46
					29,107,731	99.9	%
Perpetual Preferred Equity (see below)					17,155	0.1	%
Total Equity					29,124,886	100.0	%		77.7	%

Total Market Capitalization				$	37,490,531			100.0	%

	Sept. YTD 2024		Sept. YTD 2023	Q3 2024		Q3 2023
Weighted Average Amounts Outstanding for Net Income Purposes:
Common Shares - basic		378,718,147			378,613,604		378,755,925	378,852,510
Shares issuable from assumed conversion/vesting of:
- OP Units		10,661,328			11,377,365		10,622,681	11,234,877
- long-term compensation shares/units		1,308,755			1,144,517		1,647,562	1,263,254
Total Common Shares and Units - diluted		390,688,230			391,135,486		391,026,168	391,350,641

Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes:
Common Shares - basic		378,718,147			378,613,604		378,755,925	378,852,510
OP Units - basic		10,661,328			11,377,365		10,622,681	11,234,877
Total Common Shares and OP Units - basic		389,379,475			389,990,969		389,378,606	390,087,387
Shares issuable from assumed conversion/vesting of:
- long-term compensation shares/units		1,308,755			1,144,517		1,647,562	1,263,254
Total Common Shares and Units - diluted		390,688,230			391,135,486		391,026,168	391,350,641

Period Ending Amounts Outstanding:
Common Shares (includes Restricted Shares)		379,354,738			379,723,838
Units (includes OP Units and Restricted Units)		11,562,954			11,733,485
Total Shares and Units		390,917,692			391,457,323

															Estimated/Actual
Projects	Location	Ownership Percentage		No. of Apartment Units		Total Budgeted Capital Cost		Total Book Value to Date	Total Debt (1)		Percentage Completed	Start Date		Initial Occupancy		Completion Date		Stabilization Date		Percentage Leased / Occupied
CONSOLIDATED:
Projects Under Development:
Lorien (fka Laguna Clara II)	Santa Clara, CA	100%			225		$	152,621		$	122,760		$	—			86%		Q2 2022		Q4 2024	Q1 2025	Q4 2025	– / –
The Basin	Wakefield, MA	95%			440			232,172			99,295			—			30%		Q1 2024		Q4 2025	Q3 2026	Q2 2027	– / –
Projects Under Development - Consolidated			665			384,793			222,055			—

UNCONSOLIDATED:
Projects Under Development:
Alexan Harrison	Harrison, NY	62%			450			200,664			194,298			104,339			99%		Q3 2021		Q1 2024	Q4 2024	Q2 2026	55% / 47%
Solana Beeler Park	Denver, CO	90%			270			85,206			77,833			43,398			91%		Q4 2021		Q3 2024	Q2 2025	Q4 2025	7% / 1%
Remy (Toll)	Frisco, TX	75%			357			98,937			93,201			47,621			97%		Q1 2022		Q2 2024	Q4 2024	Q3 2025	55% / 51%
Sadie (fka Settler) (Toll)	Fort Worth, TX	75%			362			82,775			75,341			33,675			98%		Q2 2022		Q2 2024	Q4 2024	Q3 2025	44% / 41%
Lyle (Toll) (2)	Dallas, TX	75%			334			86,332			78,282			43,453			96%		Q3 2022		Q1 2024	Q4 2024	Q1 2026	51% / 48%
Modera Bridle Trails	Kirkland, WA	95%			369			185,282			48,741			—			8%		Q3 2024		Q2 2027	Q3 2027	Q4 2028	– / –
Modera South Shore	Marshfield, MA	95%			270			121,918			23,454			—			10%		Q3 2024		Q1 2026	Q4 2026	Q2 2027	– / –
Projects Under Development - Unconsolidated			2,412			861,114			591,150			272,486

Projects Completed Not Stabilized:
Alloy Sunnyside	Denver, CO	80%			209			70,004			69,303			32,833			100%		Q3 2021		Q2 2024	Q2 2024	Q3 2025	29% / 23%
Projects Completed Not Stabilized - Unconsolidated			209			70,004			69,303			32,833

Total Development Projects - Consolidated					665			384,793			222,055			—
Total Development Projects - Unconsolidated					2,621			931,118			660,453			305,319
Total Development Projects					3,286		$	1,315,911		$	882,508		$	305,319