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Section 1: 8-K (8-K)

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): July 28, 2020

 

EQUITY RESIDENTIAL

(Exact Name of Registrant as Specified in its Charter)

 

 

Maryland

1-12252

13-3675988

(State or Other Jurisdiction

of Incorporation or Organization)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

 

 

Two North Riverside Plaza

Chicago, Illinois

60606

 

 

(Address of Principal Executive Offices)

(Zip Code)

 

Registrant's telephone number, including area code: (312) 474-1300

Not applicable

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Shares of Beneficial Interest,
$0.01 Par Value

 

EQR

 

New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 

 

 

 


 

Item 2.02.  Results of Operations and Financial Condition.

On July 28, 2020, Equity Residential issued a press release announcing its results of operations and financial condition as of June 30, 2020 and for the six months and quarter then ended. The press release is furnished as Exhibit 99.1. The information contained in this Item 2.02 on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by Equity Residential under the Securities Act of 1933, as amended.

Item 9.01.  Financial Statements and Exhibits.

 

Exhibit

Number

 

Exhibit

 

 

 

99.1

 

Press Release dated July 28, 2020, announcing the results of operations and financial condition of Equity Residential as of June 30, 2020 and for the six months and quarter then ended.

 

 

 

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

EQUITY RESIDENTIAL

 

 

 

 

Date: July 28, 2020

 

By:

/s/ Ian S. Kaufman

 

 

Name:

Ian S. Kaufman

 

 

Its:

Senior Vice President and Chief Accounting Officer

 

 

 

(Principal Accounting Officer)

 

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

eqr-ex991_15.htm

 

i

 

 

 

 


 

 

Second Quarter 2020 Results

Table of Contents

Earnings Release

 

1 - 4

Consolidated Statements of Operations

 

5

Consolidated Statements of Funds From Operations and Normalized
Funds From Operations

 

6

Consolidated Balance Sheets

 

7

Portfolio Summary

 

8

Portfolio Rollforward

 

9

Same Store Results

 

10 - 16

Debt Summary

 

17 - 19

Capital Structure

 

20

Common Share and Unit Weighted Average Amounts Outstanding

 

21

Development and Lease-Up Projects

 

22

Capital Expenditures to Real Estate

 

23

Normalized EBITDAre Reconciliations

 

24

Adjustments from FFO to Normalized FFO

 

25

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

 

26 - 31



Corporate Headquarters:
Two North Riverside Plaza
Chicago, IL 60606
(312) 474-1300

Information included in this supplemental package is unaudited.

 

 


Table of Contents

 

 

 

 

 

 

NEWS RELEASE - FOR IMMEDIATE RELEASE

 

July 28, 2020

 

Equity Residential Reports Second Quarter 2020 Results

 

Chicago, IL – July 28, 2020 - Equity Residential (NYSE: EQR) today reported results for the quarter and six months ended June 30, 2020.

 

Second Quarter 2020 Results

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended June 30,

 

 

 

 

 

2020

 

 

2019

 

 

$ Change

 

 

% Change

 

 

 

Earnings Per Share (EPS)

 

$

0.70

 

 

$

0.83

 

 

$

(0.13

)

 

 

(15.7

%)

 

 

Funds from Operations (FFO) per share

 

$

0.86

 

 

$

0.80

 

 

$

0.06

 

 

 

7.5

%

 

 

Normalized FFO per share

 

$

0.86

 

 

$

0.86

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

 

 

2020

 

 

2019

 

 

$ Change

 

 

% Change

 

 

 

Earnings Per Share (EPS)

 

$

1.53

 

 

$

1.11

 

 

$

0.42

 

 

 

37.8

%

 

 

Funds from Operations (FFO) per share

 

$

1.72

 

 

$

1.61

 

 

$

0.11

 

 

 

6.8

%

 

 

Normalized FFO per share

 

$

1.72

 

 

$

1.67

 

 

$

0.05

 

 

 

3.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“These challenging times have brought out the best in the Equity Residential team as we serve our fellow employees, residents and communities.  We could not be prouder or more grateful,” said Mark J. Parrell, Equity Residential’s President and CEO. “We see good demand for our apartments, both urban and suburban, but with increased customer price sensitivity, especially in the urban cores of New York, San Francisco and Boston.  Looking forward, we believe the rate of improvement in our business will be dictated by how effectively the virus can be controlled and more normal economic activity restored.  In the meantime, our strong balance sheet, state of the art operating platform and opportunistic mindset leaves us well positioned to weather the storm and to take advantage should conditions allow.”

 

Highlights

 

 

The Company experienced a recovery in demand by late May 2020.  Initial leads, Traffic and applications continue to be in-line with the same time last year;

 

During the second quarter of 2020, the Company collected on average 97% of its total monthly Residential rental income.  July 2020 collections continue to trend on a similar pace to prior months;

 

Strong expense control, along with continued enhancements in our operating platform, led to a decline in same store expenses for the second quarter;

 

Resident retention was the highest for the second quarter in the Company’s history;

 

The Company sold two properties, totaling 655 apartment units, during the second quarter of 2020 for an aggregate sales price of approximately $384.2 million; and

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The Company successfully implemented changes to its leasing and service operations as well as the physical layout of its properties as part of its commitment to health and safety. The Company remains focused on further enhancing its existing health and safety standards during the pandemic.

 

COVID-19

The Company continues to support its residents and employees during the COVID-19 pandemic. The Company is utilizing technology to allow our property teams to interact remotely with current and prospective residents, including a touchless new leasing process and a service process designed to limit contact. We also continue to provide additional paid leave for employees impacted by the pandemic and paid special bonuses to certain on-site employees during the second quarter of 2020 in recognition of their significant efforts.  Among other resident support efforts, we have an extensive outreach process for residents financially impacted by the pandemic and have created payment plans to assist them.

 

Results Per Share

The change in EPS for the quarter ended June 30, 2020 compared to the same period of 2019 is due primarily to lower property sale gains in the second quarter of 2020, the various adjustment items listed on page 25 of this release and the items described below.  The change in EPS for the six months ended June 30, 2020 compared to the same period of 2019 is due primarily to higher property sale gains in the first six months of 2020, the various adjustment items listed on page 25 of this release and the items described below.

 

The per share changes in FFO for both the quarter and six months ended June 30, 2020 compared to the same periods of 2019, are due primarily to the various adjustment items listed on page 25 of this release and the items described below.

 

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

 

 

 

Positive/(Negative) Impact

 

 

 

Second Quarter 2020 vs.

Second Quarter 2019

 

 

June YTD 2020 vs.

June YTD 2019

 

Same Store Net Operating Income (NOI)

 

$

(0.04

)

 

$

(0.01

)

Lease-Up NOI

 

 

0.01

 

 

 

0.01

 

2020 and 2019 transaction activity impact on NOI, net

 

 

(0.01

)

 

 

(0.01

)

Interest expense

 

 

0.03

 

 

 

0.06

 

Other items

 

 

0.01

 

 

 

 

Net

 

$

 

 

$

0.05

 

 

The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 26 through 31 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 6, 28 and 29 of this release.

 

Same Store Results

The Company has provided a breakout of Residential and Non-Residential same store results on pages 10 and 11 of this release with definitions that can be found on page 30 of this release.  Non-Residential operations historically have accounted for approximately 4.0% of total revenues.  The table below reflects same store Residential only results for the second quarter 2020 to second quarter 2019 comparison, which includes 74,843 apartment units, as well as for the six months ended June 30, 2020 to six months ended June 30, 2019 comparison, which includes 74,264 apartment units. The Company’s Physical Occupancy was 94.9% compared to 96.5% for the second quarter of 2020 and 2019, respectively, and 95.7% compared to 96.4% for the first six months of 2020 and 2019, respectively.  

 

 

 

Second Quarter 2020 vs.

Second Quarter 2019

 

 

June YTD 2020 vs.

June YTD 2019

 

Revenues

 

(0.9%)

 

 

1.0%

 

Expenses

 

(0.1%)

 

 

1.1%

 

NOI

 

(1.2%)

 

 

0.9%

 

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Preliminary July 2020 Residential Same Store Operating Statistics

The following table includes select statistics for the month of July 2020 as well as the second quarter of 2020.

 

 

 

July 2020

 

 

Second Quarter 2020

 

New Lease Change

 

(8.3%)

 

 

(7.0%)

 

Renewal Rate Achieved

 

(0.9%)

 

 

0.7%

 

Blended Rate (1)

 

(4.5%)

 

 

(2.7%)

 

Physical Occupancy

 

95.0%

 

 

94.9%

 

 

(1)

Blended Rate after applying the effect of new move-in and renewal concessions is approximately (5.5%) and (3.5%) for July 2020 and the second quarter of 2020, respectively, driven by higher usage in the urban cores of New York, San Francisco and Boston.  

 

The July 2020 results listed above are approximately equal to the Company's June 2020 results for New Lease Change, Renewal Rate Achieved and Blended Rate.  Concession use is higher in July 2020 than in June 2020.

 

Investment Activity

The Company sold two apartment properties, consisting of 655 apartment units, during the second quarter of 2020 for an aggregate sales price of approximately $384.2 million at a weighted average Disposition Yield of 4.4%, generating an Unlevered IRR of 8.4%. The properties are located in the San Francisco Bay area and the Washington, D.C. area and were placed under contract prior to March 1, 2020.  During the first six months of 2020, the Company sold five properties, consisting of 1,552 apartment units, for an aggregate sales price of approximately $754.4 million at a weighted average Disposition Yield of 4.7%, generating an Unlevered IRR of 10.8%.  The Company did not acquire any apartment properties during the first six months of 2020.

 

Capital Markets Activity

On April 30, 2020, the Company closed on a $495.0 million secured loan.  The loan has a ten-year term, is interest only, and carries a fixed interest rate of 2.60%.  Proceeds from the loan were used to pay off outstanding balances under the Company’s revolving line of credit and commercial paper program. As of July 28, 2020, the Company had no outstanding balances under its revolving credit facility or commercial paper program and approximately $2.4 billion in available liquidity.

 

Third Quarter 2020 Earnings and Conference Call

Equity Residential expects to announce its third quarter 2020 results on Tuesday, October 27, 2020 and host a conference call to discuss those results at 10:00 a.m. CT on Wednesday, October 28, 2020.

 

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 rental apartment properties located in urban and high-density suburban communities where today’s renters want to live, work and play.  Equity Residential owns or has investments in 304 properties consisting of 78,410 apartment units, located in Boston, New York, Washington, D.C., Seattle, San Francisco, Southern California and Denver.  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, competition and local government regulation.  In addition, these forward-looking statements are subject to risks related to the COVID-19 pandemic, many of which are unknown, including the duration and severity of the pandemic, the extent of the adverse health impact on the general population and on our residents, customers and employees in particular, its impact on the employment rate and the economy and the corresponding impact on our residents’ and tenants’ ability to pay their rent on time or at all, the extent and impact of governmental responses and the impact of operational changes we have implemented and may implement in response to the pandemic. 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

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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, Wednesday, July 29, 2020 at 10:00 a.m. CT.  Please visit the Investor section of the Company’s web site at www.equityapartments.com for the link.  A replay of the web cast will be available for two weeks at this site.

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Table of Contents

 

Equity Residential

Consolidated Statements of Operations

(Amounts in thousands except per share data)

(Unaudited)

 

 

 

Six Months Ended June 30,

 

 

Quarter Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

1,335,837

 

 

$

1,331,676

 

 

$

653,532

 

 

$

669,374

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and maintenance

 

 

220,268

 

 

 

223,531

 

 

 

104,452

 

 

 

108,461

 

Real estate taxes and insurance

 

 

192,770

 

 

 

182,888

 

 

 

95,038

 

 

 

91,446

 

Property management

 

 

51,317

 

 

 

50,765

 

 

 

23,608

 

 

 

24,369

 

General and administrative

 

 

26,353

 

 

 

29,710

 

 

 

11,835

 

 

 

14,329

 

Depreciation

 

 

418,398

 

 

 

404,723

 

 

 

205,976

 

 

 

200,508

 

Total expenses

 

 

909,106

 

 

 

891,617

 

 

 

440,909

 

 

 

439,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain (loss) on sales of real estate properties

 

 

352,243

 

 

 

138,835

 

 

 

144,266

 

 

 

138,856

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

778,974

 

 

 

578,894

 

 

 

356,889

 

 

 

369,117

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

 

3,471

 

 

 

1,925

 

 

 

1,511

 

 

 

1,152

 

Other expenses

 

 

(4,227

)

 

 

(8,392

)

 

 

(1,694

)

 

 

(5,117

)

Interest:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense incurred, net

 

 

(167,475

)

 

 

(203,840

)

 

 

(81,885

)

 

 

(108,902

)

Amortization of deferred financing costs

 

 

(4,152

)

 

 

(5,783

)

 

 

(2,111

)

 

 

(3,647

)

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

   investments in unconsolidated entities and net gain (loss)

   on sales of land parcels

 

 

606,591

 

 

 

362,804

 

 

 

272,710

 

 

 

252,603

 

Income and other tax (expense) benefit

 

 

(240

)

 

 

(484

)

 

 

(187

)

 

 

(246

)

Income (loss) from investments in unconsolidated entities

 

 

(2,199

)

 

 

68,058

 

 

 

(1,042

)

 

 

68,765

 

Net gain (loss) on sales of land parcels

 

 

 

 

 

178

 

 

 

 

 

 

177

 

Net income

 

 

604,152

 

 

 

430,556

 

 

 

271,481

 

 

 

321,299

 

Net (income) loss attributable to Noncontrolling Interests:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Partnership

 

 

(21,248

)

 

 

(15,429

)

 

 

(9,713

)

 

 

(11,510

)

Partially Owned Properties

 

 

(13,410

)

 

 

(1,620

)

 

 

(880

)

 

 

(821

)

Net income attributable to controlling interests

 

 

569,494

 

 

 

413,507

 

 

 

260,888

 

 

 

308,968

 

Preferred distributions

 

 

(1,545

)

 

 

(1,545

)

 

 

(772

)

 

 

(772

)

Net income available to Common Shares

 

$

567,949

 

 

$

411,962

 

 

$

260,116

 

 

$

308,196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

1.53

 

 

$

1.11

 

 

$

0.70

 

 

$

0.83

 

Weighted average Common Shares outstanding

 

 

371,689

 

 

 

369,952

 

 

 

371,795

 

 

 

370,342

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

1.53

 

 

$

1.11

 

 

$

0.70

 

 

$

0.83

 

Weighted average Common Shares outstanding

 

 

386,272

 

 

 

385,644

 

 

 

385,913

 

 

 

386,107

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions declared per Common Share outstanding

 

$

1.205

 

 

$

1.135

 

 

$

0.6025

 

 

$

0.5675

 

 

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Table of Contents

 

Equity Residential

Consolidated Statements of Funds From Operations and Normalized Funds From Operations

(Amounts in thousands except per share data)

(Unaudited)

 

 

 

Six Months Ended June 30,

 

 

Quarter Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net income

 

$

604,152

 

 

$

430,556

 

 

$

271,481

 

 

$

321,299

 

Net (income) loss attributable to Noncontrolling Interests – Partially

   Owned Properties

 

 

(13,410

)

 

 

(1,620

)

 

 

(880

)

 

 

(821

)

Preferred distributions

 

 

(1,545

)

 

 

(1,545

)

 

 

(772

)

 

 

(772

)

Net income available to Common Shares and Units

 

 

589,197

 

 

 

427,391

 

 

 

269,829

 

 

 

319,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

418,398

 

 

 

404,723

 

 

 

205,976

 

 

 

200,508

 

Depreciation – Non-real estate additions

 

 

(2,307

)

 

 

(2,303

)

 

 

(1,020

)

 

 

(1,121

)

Depreciation – Partially Owned Properties

 

 

(1,686

)

 

 

(1,802

)

 

 

(830

)

 

 

(899

)

Depreciation – Unconsolidated Properties

 

 

1,224

 

 

 

1,772

 

 

 

611

 

 

 

850

 

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

   assets

 

 

 

 

 

(69,522

)

 

 

 

 

 

(69,522

)

Net (gain) loss on sales of real estate properties

 

 

(352,243

)

 

 

(138,835

)

 

 

(144,266

)

 

 

(138,856

)

Noncontrolling Interests share of gain (loss) on sales

   of real estate properties

 

 

11,655

 

 

 

 

 

 

 

 

 

 

FFO available to Common Shares and Units

 

 

664,238

 

 

 

621,424

 

 

 

330,300

 

 

 

310,666

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments (see note for additional detail):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment non-operating assets

 

 

 

 

 

 

 

 

 

 

 

 

Write-off of pursuit costs

 

 

3,278

 

 

 

2,987

 

 

 

1,651

 

 

 

1,539

 

Debt extinguishment and preferred share redemption (gains)

   losses

 

 

32

 

 

 

16,647

 

 

 

32

 

 

 

16,647

 

Non-operating asset (gains) losses

 

 

670

 

 

 

252

 

 

 

229

 

 

 

23

 

Other miscellaneous items

 

 

(2,310

)

 

 

4,418

 

 

 

(1,392

)

 

 

2,843

 

Normalized FFO available to Common Shares and Units

 

$

665,908

 

 

$

645,728

 

 

$

330,820

 

 

$

331,718

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

$

665,783

 

 

$

622,969

 

 

$

331,072

 

 

$

311,438

 

Preferred distributions

 

 

(1,545

)

 

 

(1,545

)

 

 

(772

)

 

 

(772

)

FFO available to Common Shares and Units

 

$

664,238

 

 

$

621,424

 

 

$

330,300

 

 

$

310,666

 

FFO per share and Unit basic

 

$

1.73

 

 

$

1.62

 

 

$

0.86

 

 

$

0.81

 

FFO per share and Unit diluted

 

$

1.72

 

 

$

1.61

 

 

$

0.86

 

 

$

0.80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Normalized FFO

 

$

667,453

 

 

$

647,273

 

 

$

331,592

 

 

$

332,490

 

Preferred distributions

 

 

(1,545

)

 

 

(1,545

)

 

 

(772

)

 

 

(772

)

Normalized FFO available to Common Shares and Units

 

$

665,908

 

 

$

645,728

 

 

$

330,820

 

 

$

331,718

 

Normalized FFO per share and Unit basic

 

$

1.73

 

 

$

1.69

 

 

$

0.86

 

 

$

0.87

 

Normalized FFO per share and Unit diluted

 

$

1.72

 

 

$

1.67

 

 

$

0.86

 

 

$

0.86

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average Common Shares and Units outstanding basic

 

 

384,702

 

 

 

382,854

 

 

 

384,818

 

 

 

383,227

 

Weighted average Common Shares and Units outstanding diluted

 

 

386,272

 

 

 

385,644

 

 

 

385,913

 

 

 

386,107

 

 

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.

6


Table of Contents

 

Equity Residential

Consolidated Balance Sheets

(Amounts in thousands except for share amounts)

(Unaudited)

 

 

 

June 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

Land

 

$

5,789,307

 

 

$

5,936,188

 

Depreciable property

 

 

20,997,903

 

 

 

21,319,101

 

Projects under development

 

 

274,825

 

 

 

181,630

 

Land held for development

 

 

102,361

 

 

 

96,688

 

Investment in real estate

 

 

27,164,396

 

 

 

27,533,607

 

Accumulated depreciation

 

 

(7,537,713

)

 

 

(7,276,786

)

Investment in real estate, net

 

 

19,626,683

 

 

 

20,256,821

 

Investments in unconsolidated entities

 

 

55,310

 

 

 

52,238

 

Cash and cash equivalents

 

 

187,416

 

 

 

45,753

 

Restricted deposits

 

 

58,117

 

 

 

71,246

 

Right-of-use assets

 

 

505,077

 

 

 

512,774

 

Other assets

 

 

282,348

 

 

 

233,937

 

Total assets

 

$

20,714,951

 

 

$

21,172,769

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Mortgage notes payable, net

 

$

2,340,757

 

 

$

1,941,610

 

Notes, net

 

 

6,081,102

 

 

 

6,077,513

 

Line of credit and commercial paper

 

 

 

 

 

1,017,833

 

Accounts payable and accrued expenses

 

 

109,776

 

 

 

94,350

 

Accrued interest payable

 

 

67,589

 

 

 

66,852

 

Lease liabilities

 

 

330,135

 

 

 

331,334

 

Other liabilities

 

 

315,208

 

 

 

346,963

 

Security deposits

 

 

64,005

 

 

 

70,062

 

Distributions payable

 

 

232,208

 

 

 

218,326

 

Total liabilities

 

 

9,540,780

 

 

 

10,164,843

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable Noncontrolling Interests – Operating Partnership

 

 

336,695

 

 

 

463,400

 

Equity:

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

Preferred Shares of beneficial interest, $0.01 par value;

   100,000,000 shares authorized; 745,600 shares issued and

   outstanding as of June 30, 2020 and December 31, 2019

 

 

37,280

 

 

 

37,280

 

Common Shares of beneficial interest, $0.01 par value;

   1,000,000,000 shares authorized; 372,209,012 shares issued

   and outstanding as of June 30, 2020 and 371,670,884

   shares issued and outstanding as of December 31, 2019

 

 

3,722

 

 

 

3,717

 

Paid in capital

 

 

9,118,332

 

 

 

8,965,577

 

Retained earnings

 

 

1,505,694

 

 

 

1,386,495

 

Accumulated other comprehensive income (loss)

 

 

(67,355

)

 

 

(77,563

)

Total shareholders’ equity

 

 

10,597,673

 

 

 

10,315,506

 

Noncontrolling Interests:

 

 

 

 

 

 

 

 

Operating Partnership

 

 

235,169

 

 

 

227,837

 

Partially Owned Properties

 

 

4,634

 

 

 

1,183

 

Total Noncontrolling Interests

 

 

239,803

 

 

 

229,020

 

Total equity

 

 

10,837,476

 

 

 

10,544,526

 

Total liabilities and equity

 

$

20,714,951

 

 

$

21,172,769

 

 

 

 

7


Table of Contents

 

 

Equity Residential

Portfolio Summary

As of June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

% of

Stabilized

 

 

Average

 

 

 

 

 

 

 

Apartment

 

 

Budgeted

 

 

Rental

 

Markets/Metro Areas

 

Properties

 

 

Units

 

 

NOI

 

 

Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

72

 

 

 

16,603

 

 

 

19.1

%

 

$

2,590

 

Orange County

 

 

13

 

 

 

4,028

 

 

 

4.4

%

 

 

2,263

 

San Diego

 

 

12

 

 

 

3,385

 

 

 

3.8

%

 

 

2,426

 

Subtotal – Southern California

 

 

97

 

 

 

24,016

 

 

 

27.3

%

 

 

2,511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

48

 

 

 

12,707

 

 

 

19.8

%

 

 

3,320

 

Washington DC

 

 

47

 

 

 

14,731

 

 

 

15.8

%

 

 

2,458

 

New York

 

 

37

 

 

 

9,606

 

 

 

14.6

%

 

 

3,909

 

Seattle

 

 

45

 

 

 

9,296

 

 

 

10.9

%

 

 

2,466

 

Boston

 

 

25

 

 

 

6,430

 

 

 

10.1

%

 

 

3,173

 

Denver

 

 

5