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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): May 5, 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 May 5, 2020, Equity Residential issued a press release announcing its results of operations and financial condition as of March 31, 2020 and for the 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 May 5, 2020, announcing the results of operations and financial condition of Equity Residential as of March 31, 2020 and for the 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: May 5, 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

 

 

 

 


 

 

First 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 - 14

Debt Summary

 

15 - 17

Capital Structure

 

18

Common Share and Unit Weighted Average Amounts Outstanding

 

19

Development and Lease-Up Projects

 

20

Capital Expenditures to Real Estate

 

21

Normalized EBITDAre Reconciliations

 

22

Adjustments from FFO to Normalized FFO

 

23

Additional Reconciliations and Definitions of Non-GAAP

Financial Measures and Other Terms

 

24 - 29



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

 

May 5, 2020

 

Equity Residential Reports First Quarter 2020 Results

Provides Update on COVID-19 Related Activities and Preliminary

April 2020 Statistics;

Withdraws Full Year 2020 Earnings Guidance

 

Chicago, IL – May 5, 2020 - Equity Residential (NYSE: EQR) today reported results for the quarter ended March 31, 2020 and preliminary April 2020 operating statistics as well as provided an update on activities related to the COVID-19 pandemic.

 

“We are deeply grateful to the entire Equity Residential team and especially our on-site colleagues for their dedication to serving our 150,000 residents during this difficult time,” said Mark J. Parrell, Equity Residential’s President and CEO.  “We have instituted new programs to support our hard working colleagues and to assist our residents and communities. Thank you to the Equity Residential team for honoring their commitment to our residents and to our residents for their trust and support.  Working together is the best way for all of us to get through this crisis.”

During this pandemic, Equity Residential is:

Supporting Our Residents by:

 

Keeping our properties open and operating and our residents safe in compliance with state and local shelter-in-place orders.

 

Utilizing technology to allow our property teams to interact remotely with current residents and prospective residents including a touchless new leasing process and a service process designed to limit contact.

 

Currently offering resident renewals with no rent increase and providing flexible lease renewal options to help residents weather the crisis.

 

Currently creating payment plans, waiving late fees and halting evictions for residents who can document that they have been adversely financially impacted by the COVID-19 pandemic.

 

Connecting our residents with governmental and community resources to help residents secure food, financial assistance and healthcare.  

Supporting Our Employees by:

 

Providing each employee with extended emergency leave.

 

Providing resources to help our employees with their physical, mental and financial wellbeing.

 

Providing necessary technology and technical resources to limit in-person contact while continuing essential maintenance activities such as emergency repairs and life/safety.  

 

Paying special cash bonuses to our on-site service and concierge teams for their hard work and dedication.

 

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Supporting Our Communities by:

 

Making donations from the Equity Residential Foundation to local food banks and groups helping the homeless and needy in our markets.

 

Providing meals to frontline responders from Equity Residential’s restaurant tenants.

Preliminary April 2020 Statistics

The Company has provided various statistics related to its Residential same store operations for the month ended April 30, 2020 to assist investors in understanding the impact of the pandemic on the Company’s operations. These statistics along with comparative numbers for the first quarter of 2020 are set forth below and in more detail on page 13 of this release:

 

 

April 2020

 

 

Q1 2020

 

New Lease Change

 

 

(1.9

%)

 

 

(0.8

%)

Renewal Rate Achieved

 

 

2.8

%

 

 

4.2

%

Physical Occupancy (end of period)

 

 

94.7

%

 

 

96.0

%

 

As the Company’s markets became subject to shelter-in-place orders, the Company experienced significant declines in leasing activity. In the third week of March 2020, Traffic, initial leads and applications declined by 50% or more compared to the same period of last year.  In April 2020, the Company experienced a recovery in demand with Traffic, initial leads and applications meaningfully improving. Traffic and initial leads are now down approximately 20% and applications are equal relative to the same period last year.  

 

The Company’s Residential collections are strong.  During April 2020, Residential Cash Collections were approximately 97% of Residential Cash Collections in March 2020.  As of the end of April 2020, current residents at same store properties had cumulative outstanding Residential Delinquency balances of approximately $11.0 million, representing a same store Residential Delinquency percentage of 5.4%.  This compares to cumulative outstanding same store Residential Delinquency balances of approximately $5.4 million, representing a same store Residential Delinquency percentage of 2.6% at the end of March 2020, prior to the impact of COVID-19.  The Company continues to work with residents to collect these outstanding balances including through the establishment of payment plans.

 

The Company’s Non-Residential operations, which mostly consist of ground floor retail in our apartment buildings and public garage parking, have historically been approximately 4.0% of annual total revenues.  These operations have been more impacted by the pandemic. The Company collected approximately 58%, or $3.6 million, of retail cash collections during the month of April 2020 as compared to the month of March 2020, and the Company collected approximately 67%, or $1.3 million, of public garage parking cash collections during the month of April 2020 as compared to the month of March 2020.  As of the end of April 2020 and March 2020, current retail tenants at our same store properties had cumulative outstanding delinquency or deferred payment balances of approximately $5.0 million and $2.3 million, respectively.  The Company is working with remaining retail tenants on payment plans.

 

“Under very challenging circumstances, our business continues to be durable.  Our April payment statistics show a financially resilient resident base and while very early, we have not seen anything to suggest that May will be materially different.  We are also seeing an improvement in our leasing activity from the very low levels we experienced in late March though most activity remains lower than usual levels.  We are working diligently to prepare our people and properties to operate safely and as efficiently as possible once restrictions are lifted in our markets. While the employment losses of late will pressure operations in the near term, we expect our properties and markets to remain desirable to our affluent renter demographic and our operations to return to a more normal state over time,” said Mr. Parrell.

 

First Quarter 2020 Results

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended March 31,

 

 

 

 

 

2020

 

 

2019

 

 

$ Change

 

 

% Change

 

 

 

Earnings Per Share (EPS)

 

$

0.83

 

 

$

0.28

 

 

$

0.55

 

 

 

196.4

%

 

 

Funds from Operations (FFO) per share

 

$

0.86

 

 

$

0.81

 

 

$

0.05

 

 

 

6.2

%

 

 

Normalized FFO per share

 

$

0.87

 

 

$

0.82

 

 

$

0.05

 

 

 

6.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Results Per Share

The change in EPS for the quarter ended March 31, 2020 compared to the same period of 2019, is due primarily to higher property sale gains in the first quarter of 2020, the various adjustment items listed on page 23 of this release and the items described below.

 

The per share change in FFO for the quarter ended March 31, 2020 compared to the same period of 2019, is due primarily to the various adjustment items listed on page 23 of this release and the items described below.

 

The per share change in Normalized FFO is due primarily to:

 

 

Positive/(Negative) Impact

 

 

 

First Quarter 2020 vs.

First Quarter 2019

 

Same Store Net Operating Income (NOI)

 

$

0.03

 

Lease-Up NOI

 

 

0.01

 

Interest expense

 

 

0.02

 

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 24 through 29 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 6, 26 and 27 of this release.

 

Same Store Results

Given the current environment, the Company has provided a breakout of Residential and Non-Residential same store results on page 10 of this release with definitions that can be found on page 28 of this release.  The table below reflects same store Residential only results for the first quarter 2020 to first quarter 2019 comparison, which includes 74,919 apartment units. The Company’s Physical Occupancy was 96.5% compared to 96.3% for the first quarter of 2020 and 2019, respectively.   

 

 

 

First Quarter 2020 vs.

First Quarter 2019

 

Revenues

 

2.9%

 

Expenses

 

2.3%

 

NOI

 

3.2%

 

 

 

Investment Activity

The Company sold two wholly-owned properties in the San Francisco Bay Area and one partially-owned consolidated property in Phoenix during the first quarter of 2020, totaling 897 apartment units, for an aggregate sale price of approximately $370.2 million at a weighted average Disposition Yield of 5.0%, generating an Unlevered IRR of 12.9%.  The Company did not acquire any apartment properties during the first quarter of 2020.

 

Subsequent to quarter-end, the Company sold one wholly-owned property located in the San Francisco Bay Area for approximately $108.0 million at a Disposition Yield of 4.5%.

 

Capital Markets and Liquidity    

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 May 4, 2020, the Company had the following availability under its unsecured revolving credit facility:

 

 

 

May 4, 2020

(amounts in thousands)

 

Unsecured revolving credit facility commitment

 

$

2,500,000

 

 

 

 

 

 

Commercial paper balance outstanding

 

 

(180,000

)

 

 

 

 

 

Unsecured revolving credit facility balance outstanding

 

 

 

 

 

 

 

 

Other restricted amounts

 

 

(100,949

)

 

 

 

 

 

Unsecured revolving credit facility availability

 

$

2,219,051

 

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The Company has approximately $25.6 million in debt maturities and $200.0 million in estimated development spend remaining in 2020. With over $2.2 billion in readily available liquidity and very strong credit metrics, the Company is well positioned to meet these and future obligations.

 

2020 Guidance

Due to the inherent uncertainty surrounding the social and economic disruption resulting from the COVID-19 pandemic, the Company believes it is appropriate to withdraw its full-year 2020 guidance, which was included in its January 28, 2020 earnings release. The Company is also suspending issuing guidance in future periods until there is greater certainty surrounding the impact of the ongoing pandemic.

 

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 306 properties consisting of 79,065 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 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, May 6, 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)

 

 

 

Quarter Ended March 31,

 

 

 

 

2020

 

 

2019

 

 

REVENUES

 

 

 

 

 

 

 

 

 

Rental income

 

$

682,305

 

 

$

662,302

 

 

Fee and asset management

 

 

24

 

 

 

192

 

 

Total revenues

 

 

682,329

 

 

 

662,494

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

Property and maintenance

 

 

115,816

 

 

 

115,070

 

 

Real estate taxes and insurance

 

 

97,732

 

 

 

91,442

 

 

Property management

 

 

27,709

 

 

 

26,396

 

 

General and administrative

 

 

14,518

 

 

 

15,381

 

 

Depreciation

 

 

212,422

 

 

 

204,215

 

 

Total expenses

 

 

468,197

 

 

 

452,504

 

 

 

 

 

 

 

 

 

 

 

 

Net gain (loss) on sales of real estate properties

 

 

207,977

 

 

 

(21

)

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

422,109

 

 

 

209,969

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

 

1,936

 

 

 

581

 

 

Other expenses

 

 

(2,533

)

 

 

(3,275

)

 

Interest:

 

 

 

 

 

 

 

 

 

Expense incurred, net

 

 

(85,590

)

 

 

(94,938

)

 

Amortization of deferred financing costs

 

 

(2,041

)

 

 

(2,136

)

 

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

   investments in unconsolidated entities and net gain (loss)

   on sales of land parcels

 

 

333,881

 

 

 

110,201

 

 

Income and other tax (expense) benefit

 

 

(53

)

 

 

(238

)

 

Income (loss) from investments in unconsolidated entities

 

 

(1,157

)

 

 

(707

)

 

Net gain (loss) on sales of land parcels

 

 

 

 

 

1

 

 

Net income

 

 

332,671

 

 

 

109,257

 

 

Net (income) loss attributable to Noncontrolling Interests:

 

 

 

 

 

 

 

 

 

Operating Partnership

 

 

(11,535

)

 

 

(3,919

)

 

Partially Owned Properties

 

 

(12,530

)

 

 

(799

)

 

Net income attributable to controlling interests

 

 

308,606

 

 

 

104,539

 

 

Preferred distributions

 

 

(773

)

 

 

(773

)

 

Net income available to Common Shares

 

$

307,833

 

 

$

103,766

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – basic:

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

0.83

 

 

$

0.28

 

 

Weighted average Common Shares outstanding

 

 

371,582

 

 

 

369,558

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – diluted:

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

0.83

 

 

$

0.28

 

 

Weighted average Common Shares outstanding

 

 

386,949

 

 

 

385,184

 

 

 

 

 

 

 

 

 

 

 

 

Distributions declared per Common Share outstanding

 

$

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)

 

 

 

Quarter Ended March 31,

 

 

 

 

2020

 

 

2019

 

 

Net income

 

$

332,671

 

 

$

109,257

 

 

Net (income) loss attributable to Noncontrolling Interests – Partially

   Owned Properties

 

 

(12,530

)

 

 

(799

)

 

Preferred distributions

 

 

(773

)

 

 

(773

)

 

Net income available to Common Shares and Units

 

 

319,368

 

 

 

107,685

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

Depreciation

 

 

212,422

 

 

 

204,215

 

 

Depreciation – Non-real estate additions

 

 

(1,287

)

 

 

(1,182

)

 

Depreciation – Partially Owned Properties

 

 

(856

)

 

 

(903

)

 

Depreciation – Unconsolidated Properties

 

 

613

 

 

 

922

 

 

Net (gain) loss on sales of real estate properties

 

 

(207,977

)

 

 

21

 

 

Noncontrolling Interests share of gain (loss) on sales

   of real estate properties

 

 

11,655

 

 

 

 

 

FFO available to Common Shares and Units

 

 

333,938

 

 

 

310,758

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments (see note for additional detail):

 

 

 

 

 

 

 

 

 

Impairment non-operating assets

 

 

 

 

 

 

 

Write-off of pursuit costs

 

 

1,627

 

 

 

1,448

 

 

Debt extinguishment and preferred share redemption (gains)

   losses

 

 

 

 

 

 

 

Non-operating asset (gains) losses

 

 

441

 

 

 

229

 

 

Other miscellaneous items

 

 

(918

)

 

 

1,575

 

 

Normalized FFO available to Common Shares and Units

 

$

335,088

 

 

$

314,010

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

$

334,711

 

 

$

311,531

 

 

Preferred distributions

 

 

(773

)

 

 

(773

)

 

FFO available to Common Shares and Units

 

$

333,938

 

 

$

310,758

 

 

FFO per share and Unit basic

 

$

0.87

 

 

$

0.81

 

 

FFO per share and Unit diluted

 

$

0.86

 

 

$

0.81

 

 

 

 

 

 

 

 

 

 

 

 

Normalized FFO

 

$

335,861

 

 

$

314,783

 

 

Preferred distributions

 

 

(773

)

 

 

(773

)

 

Normalized FFO available to Common Shares and Units

 

$

335,088

 

 

$

314,010

 

 

Normalized FFO per share and Unit basic

 

$

0.87

 

 

$

0.82

 

 

Normalized FFO per share and Unit diluted

 

$

0.87

 

 

$

0.82

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average Common Shares and Units outstanding basic

 

 

384,586

 

 

 

382,477

 

 

Weighted average Common Shares and Units outstanding diluted

 

 

386,949

 

 

 

385,184

 

 

 

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.

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Table of Contents

 

Equity Residential

Consolidated Balance Sheets

(Amounts in thousands except for share amounts)

(Unaudited)

 

 

 

March 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

Land

 

$

5,883,065

 

 

$

5,936,188

 

Depreciable property

 

 

21,197,547

 

 

 

21,319,101

 

Projects under development

 

 

225,753

 

 

 

181,630

 

Land held for development

 

 

102,602

 

 

 

96,688

 

Investment in real estate

 

 

27,408,967

 

 

 

27,533,607

 

Accumulated depreciation

 

 

(7,420,293

)

 

 

(7,276,786

)

Investment in real estate, net

 

 

19,988,674

 

 

 

20,256,821

 

Investments in unconsolidated entities

 

 

55,866

 

 

 

52,238

 

Cash and cash equivalents

 

 

82,335

 

 

 

45,753

 

Restricted deposits

 

 

58,435

 

 

 

71,246

 

Right-of-use assets

 

 

507,962

 

 

 

512,774

 

Other assets

 

 

226,046

 

 

 

233,937

 

Total assets

 

$

20,919,318

 

 

$

21,172,769

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Mortgage notes payable, net

 

$

1,940,745

 

 

$

1,941,610

 

Notes, net

 

 

6,079,308

 

 

 

6,077,513

 

Line of credit and commercial paper

 

 

612,651

 

 

 

1,017,833

 

Accounts payable and accrued expenses

 

 

165,696

 

 

 

94,350

 

Accrued interest payable

 

 

65,925

 

 

 

66,852

 

Lease liabilities

 

 

330,713

 

 

 

331,334

 

Other liabilities

 

 

298,992

 

 

 

346,963

 

Security deposits

 

 

69,074

 

 

 

70,062

 

Distributions payable

 

 

232,186

 

 

 

218,326

 

Total liabilities

 

 

9,795,290

 

 

 

10,164,843

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable Noncontrolling Interests – Operating Partnership

 

 

353,342

 

 

 

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 March 31, 2020 and December 31, 2019

 

 

37,280

 

 

 

37,280

 

Common Shares of beneficial interest, $0.01 par value;

   1,000,000,000 shares authorized; 372,104,054 shares issued

   and outstanding as of March 31, 2020 and 371,670,884

   shares issued and outstanding as of December 31, 2019

 

 

3,721

 

 

 

3,717

 

Paid in capital

 

 

9,092,441

 

 

 

8,965,577

 

Retained earnings

 

 

1,469,821

 

 

 

1,386,495

 

Accumulated other comprehensive income (loss)

 

 

(72,896

)

 

 

(77,563

)

Total shareholders’ equity

 

 

10,530,367

 

 

 

10,315,506

 

Noncontrolling Interests:

 

 

 

 

 

 

 

 

Operating Partnership

 

 

235,580

 

 

 

227,837

 

Partially Owned Properties

 

 

4,739

 

 

 

1,183

 

Total Noncontrolling Interests

 

 

240,319

 

 

 

229,020

 

Total equity

 

 

10,770,686

 

 

 

10,544,526

 

Total liabilities and equity

 

$

20,919,318

 

 

$

21,172,769

 

 

 

 

7


Table of Contents

 

Equity Residential

Portfolio Summary

As of March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

% of

Stabilized

 

 

Average

 

 

 

 

 

 

 

Apartment

 

 

Budgeted

 

 

Rental

 

Markets/Metro Areas

 

Properties

 

 

Units

 

 

NOI

 

 

Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

72

 

 

 

16,603

 

 

 

18.9

%

 

$

2,635

 

Orange County

 

 

13

 

 

 

4,028

 

 

 

4.3

%

 

 

2,280

 

San Diego

 

 

12

 

 

 

3,385

 

 

 

3.8

%

 

 

2,443

 

Subtotal – Southern California

 

 

97

 

 

 

24,016

 

 

 

27.0

%

 

 

2,548

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

49

 

 

 

12,845

 

 

 

19.9

%

 

 

3,349

 

Washington DC

 

 

48

 

 

 

15,248

 

 

 

16.3

%

 

 

2,475

 

New York

 

 

37

 

 

 

9,606

 

 

 

14.5

%

 

 

3,944

 

Seattle

 

 

45

 

 

 

9,296

 

 

 

10.9

%

 

 

2,472

 

Boston

 

 

25

 

 

 

6,430

 

 

 

10.0

%

 

 

3,184

 

Denver

 

 

5

 

 

 

1,624

 

 

 

1.4

%

 

 

2,055

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

306

 

 

 

79,065

 

 

 

100.0

%

 

$

2,868

 

 

 

 

 

 

 

Properties

 

 

Apartment Units

 

 

 

 

 

 

 

 

 

 

Wholly Owned Properties

 

 

289

 

 

 

75,504

 

Master-Leased Properties – Consolidated

 

 

1

 

 

 

162

 

Partially Owned Properties – Consolidated

 

 

16

 

 

 

3,399

 

 

 

 

 

 

 

 

 

 

 

 

 

306

 

 

 

79,065

 

 

 

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

          

 

 

 

1st Quarter 2020 Earnings Release

 

8

 


Table of Contents

 

 

Equity Residential

 

 

Portfolio Rollforward Q1 2020

($ in thousands)

 

 

 

 

 

 

Properties

 

 

Apartment

Units

 

 

Sales Price

 

 

Disposition

Yield

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12/31/2019

 

 

309

 

 

 

79,962

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dispositions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties

 

 

 

 

(3

)

 

 

(897

)

 

$

(370,200

)

 

 

(5.0

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3/31/2020

 

 

306

 

 

 

79,065

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1st Quarter 2020 Earnings Release

 

9

 


Table of Contents

 

 

Equity Residential

 

 

First Quarter 2020 vs. First Quarter 2019

Total Same Store Results/Statistics Including 74,919 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

 

First Quarter 2020

 

 

First Quarter 2019

 

 

 

Residential

 

 

% Change

 

 

Non-

Residential (1)

 

 

% Change

 

 

Total

 

 

% Change

 

 

 

 

Residential

 

 

Non-

Residential (1)

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

625,286

 

 

2.9%

 

 

$

23,091

 

 

(1.4%)

 

 

$

648,377

 

 

2.7%

 

 

Revenues

 

$

607,686

 

 

$

23,413

 

 

$

631,099

 

Expenses

 

$

194,207

 

 

2.3%

 

 

$

5,730

 

 

6.3%

 

 

$

199,937

 

 

2.4%

 

 

Expenses

 

$

189,836

 

 

$

5,388

 

 

$

195,224

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI

 

$

431,079

 

 

3.2%

 

 

$

17,361

 

 

(3.7%)

 

 

$

448,440

 

 

2.9%

 

 

NOI

 

$

417,850

 

 

$

18,025

 

 

$

435,875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

$

2,885

 

 

2.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

$

2,809

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

96.5

%

 

0.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

96.3

%