Same Store Results Ahead of Expectations
Equity Residential (NYSE: EQR) today reported results for the quarter ended March 31, 2024.
First Quarter 2024 Results
All per share results are reported as available to common shares/units on a diluted basis.
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Quarter Ended March 31, |
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2024 |
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2023 |
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$ Change |
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% Change |
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Earnings Per Share (EPS) |
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$ |
0.77 |
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$ |
0.56 |
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$ |
0.21 |
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37.5 |
% |
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Funds from Operations (FFO) per share |
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$ |
0.87 |
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$ |
0.85 |
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$ |
0.02 |
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2.4 |
% |
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Normalized FFO (NFFO) per share |
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$ |
0.93 |
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$ |
0.87 |
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$ |
0.06 |
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6.9 |
% |
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Recent Highlights
- Same store revenue increased 4.1% for the first quarter of 2024 compared to the first quarter of 2023, driven by healthy demand and modest supply across most of our markets. Same store expense increased 1.3% with low or negative growth in our primary expense categories. The Company's continued focus on expense efficiency has delivered a five-year compounded annual growth rate of same store expenses of 3.1%. Same store Net Operating Income (NOI) increased 5.5%.
- Our focus on same store revenue growth, same store expense and corporate overhead efficiency and limited exposure to higher interest rates led to strong growth.
- Our high quality customer experience along with the overall desirability of our locations has led to the lowest quarterly same store Turnover in our history of 8.6%.
- During the first quarter of 2024, the Company sold three properties - one in Boston, one in Orange County and one in San Francisco - consisting of 504 apartment units, for an aggregate sale price of approximately $248.5 million.
- During the first quarter of 2024, the Company repurchased and retired 652,452 of its common shares, at a weighted average purchase price of $58.95 per share, for an aggregate purchased amount of approximately $38.5 million.
“Our operating business performed very well this quarter positioning us favorably as we enter our primary leasing season,” said Mark J. Parrell, Equity Residential’s President and CEO. “The positive demand dynamics in our affluent renter demographic, limited new apartment supply in our existing predominantly coastal markets and our laser focus on expense management continue to produce good results.”
Results Per Share
The change in EPS for the quarter ended March 31, 2024 compared to the same period of 2023 is due primarily to higher property sale gains, the various adjustment items listed on page 25 of this release and the items described below.
The per share change in FFO for the quarter ended March 31, 2024 compared to the same period of 2023 is due primarily to the various adjustment items listed on page 25 of this release and the items described below.
The per share change in Normalized FFO is due primarily to:
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Positive/(Negative) Impact |
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First Quarter 2024 vs.
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Same store NOI |
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$ |
0.07 |
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2024 and 2023 transaction activity impact on NOI, net |
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(0.01 |
) |
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Corporate overhead (1) |
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(0.01 |
) |
Other items |
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0.01 |
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Net |
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$ |
0.06 |
|
(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 27 through 33 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 6, 29 and 30 of this release.
Same Store Results
The following table shows the total same store results for the periods presented (includes Residential and Non-Residential).
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First Quarter 2024 vs.
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First Quarter 2024 vs.
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Apartment Units |
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77,373 |
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77,950 |
Physical Occupancy |
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96.3% vs. 95.9% |
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96.3% vs. 95.8% |
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Revenues (1) |
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4.1% |
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1.1% |
Expenses |
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1.3% |
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6.5% |
NOI |
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5.5% |
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(1.3%) |
(1) |
See page 10 for further discussion. |
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.
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First Quarter 2024 vs.
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First Quarter 2024 vs.
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% Change |
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% Change |
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Same Store Residential Revenues- |
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comparable period |
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Lease rates |
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2.9 |
% |
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0.1 |
% |
Leasing Concessions |
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(0.3 |
%) |
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0.0 |
% |
Vacancy gain (loss) |
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0.4 |
% |
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0.6 |
% |
Bad Debt, Net (1) |
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0.3 |
% |
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0.0 |
% |
Other (2) |
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0.6 |
% |
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(0.1 |
%) |
Same Store Residential Revenues- |
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current period |
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3.9 |
% |
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0.6 |
% |
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(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 12 for more detail. |
| (2) | Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items. |
See page 11 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 77,373 same store apartment units):
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April 2024 (1) |
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Q1 2024 |
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Q4 2023 |
Physical Occupancy |
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96.4% |
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96.3% |
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95.8% |
Percentage of Residents Renewing by quarter/month |
61.0% |
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61.1% |
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59.1% |
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New Lease Change |
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0.1% |
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(2.2%) |
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(4.6%) |
Renewal Rate Achieved |
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5.1% |
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4.7% |
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5.1% |
Blended Rate |
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3.1% |
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1.6% |
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0.7% |
(1) |
April 2024 results are preliminary as of April 18th. |
Investment Activity
The Company did not acquire any operating properties during the first quarter of 2024. During the first quarter of 2024, the Company sold three properties - one in Boston, one in Orange County and one in suburban San Francisco - consisting of 504 apartment units, for an aggregate sale price of approximately $248.5 million at a weighted average Disposition Yield of 5.5%, generating an Unlevered IRR of 13.1%. The average age of the properties sold in the first quarter of 2024 was approximately 40 years.
During the first quarter of 2024, the Company began construction on The Basin, a 440 apartment unit property located in suburban Boston with a Total Budgeted Capital Cost of $232.2 million.
Capital Markets Activity
During the first quarter of 2024, the Company repurchased and retired 652,452 of its common shares, at a weighted average purchase price of $58.95 per share, for an aggregate purchased amount of approximately $38.5 million. Combined with the Company’s fourth quarter 2023 repurchase activity, the Company has repurchased approximately $87.5 million of its common shares at a weighted average purchase price of $57.72 per share.
Second Quarter 2024 Guidance
At this time the Company is not revising its annual operating, EPS, FFO per share or Normalized FFO per share guidance provided as part of its fourth quarter 2023 earnings release. See page 26.
The Company has established guidance ranges for the second quarter of 2024 EPS, FFO per share and Normalized FFO per share as listed below:
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Q2 2024
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EPS |
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$0.45 to $0.49 |
FFO per share |
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$0.91 to $0.95 |
Normalized FFO per share |
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$0.92 to $0.96 |
The difference between the first quarter of 2024 actual EPS of $0.77 and the second quarter of 2024 EPS guidance midpoint of $0.47 is due primarily to higher expected same store NOI, lower expected property sale gains and lower expected other expenses.
The difference between the first quarter of 2024 actual FFO of $0.87 per share and the second quarter of 2024 FFO guidance midpoint of $0.93 per share is due primarily to higher expected same store NOI and lower expected other expenses.
The difference between the first quarter of 2024 actual Normalized FFO of $0.93 per share and the second quarter of 2024 Normalized FFO guidance midpoint of $0.94 per share is due primarily to higher expected same store NOI.
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 299 properties consisting of 79,688 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, Wednesday, April 24, 2024 at 10:00 a.m. CT. 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) |
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Quarter Ended March 31, |
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2024 |
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2023 |
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REVENUES |
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Rental income |
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$ |
730,818 |
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$ |
705,088 |
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EXPENSES |
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Property and maintenance |
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134,630 |
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137,579 |
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Real estate taxes and insurance |
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108,927 |
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106,669 |
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Property management |
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35,458 |
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31,466 |
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General and administrative |
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15,720 |
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16,165 |
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Depreciation |
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225,695 |
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215,830 |
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Total expenses |
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520,430 |
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507,709 |
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Net gain (loss) on sales of real estate properties |
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188,185 |
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100,209 |
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Interest and other income |
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9,329 |
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1,538 |
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Other expenses |
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(31,738 |
) |
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(8,995 |
) |
Interest: |
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Expense incurred, net |
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(67,212 |
) |
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(66,401 |
) |
Amortization of deferred financing costs |
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(1,918 |
) |
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(1,979 |
) |
Income before income and other taxes, income (loss) from |
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investments in unconsolidated entities and net gain (loss) |
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on sales of land parcels |
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|
307,034 |
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221,751 |
|
Income and other tax (expense) benefit |
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(304 |
) |
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(298 |
) |
Income (loss) from investments in unconsolidated entities |
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(1,698 |
) |
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|
(1,382 |
) |
Net income |
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305,032 |
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|
220,071 |
|
Net (income) loss attributable to Noncontrolling Interests: |
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Operating Partnership |
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(8,275 |
) |
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|
(7,059 |
) |
Partially Owned Properties |
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|
(970 |
) |
|
|
(977 |
) |
Net income attributable to controlling interests |
|
|
295,787 |
|
|
|
212,035 |
|
Preferred distributions |
|
|
(547 |
) |
|
|
(772 |
) |
Premium on redemption of Preferred Shares |
|
|
(1,444 |
) |
|
|
— |
|
Net income available to Common Shares |
|
$ |
293,796 |
|
|
$ |
211,263 |
|
|
|
|
|
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|
||
Earnings per share – basic: |
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|
|
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|
||
Net income available to Common Shares |
|
$ |
0.78 |
|
|
$ |
0.56 |
|
Weighted average Common Shares outstanding |
|
|
378,812 |
|
|
|
378,341 |
|
|
|
|
|
|
|
|
||
Earnings per share – diluted: |
|
|
|
|
|
|
||
Net income available to Common Shares |
|
$ |
0.77 |
|
|
$ |
0.56 |
|
Weighted average Common Shares outstanding |
|
|
390,561 |
|
|
|
390,664 |
|
|
|
|
|
|
|
|
||
Distributions declared per Common Share outstanding |
|
$ |
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) |
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|
Quarter Ended March 31, |
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|
|
2024 |
|
2023 |
||||
Net income |
|
$ |
305,032 |
|
|
$ |
220,071 |
|
Net (income) loss attributable to Noncontrolling Interests – Partially |
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Owned Properties |
|
(970 |
) |
|
|
(977 |
) |
|
Preferred distributions |
|
|
(547 |
) |
|
|
(772 |
) |
Premium on redemption of Preferred Shares |
|
|
(1,444 |
) |
|
|
— |
|
Net income available to Common Shares and Units |
|
|
302,071 |
|
|
|
218,322 |
|
|
|
|
|
|
|
|
||
Adjustments: |
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|
|
|
|
|
||
Depreciation |
|
|
225,695 |
|
|
|
215,830 |
|
Depreciation – Non-real estate additions |
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|
(955 |
) |
|
|
(1,156 |
) |
Depreciation – Partially Owned Properties |
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|
(542 |
) |
|
|
(545 |
) |
Depreciation – Unconsolidated Properties |
|
|
335 |
|
|
|
632 |
|
Net (gain) loss on sales of real estate properties |
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|
(188,185 |
) |
|
|
(100,209 |
) |
FFO available to Common Shares and Units |
|
|
338,419 |
|
|
|
332,874 |
|
|
|
|
|
|
|
|
||
Adjustments (see note for additional detail): |
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|
|
|
|
|
||
Write-off of pursuit costs |
|
|
548 |
|
|
|
1,332 |
|
Debt extinguishment and preferred share redemption (gains) |
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losses |
|
|
1,444 |
|
|
|
— |
|
Non-operating asset (gains) losses |
|
|
(6,106 |
) |
|
|
714 |
|
Other miscellaneous items |
|
|
30,591 |
|
|
|
6,292 |
|
Normalized FFO available to Common Shares and Units |
|
$ |
364,896 |
|
|
$ |
341,212 |
|
|
|
|
|
|
|
|
||
FFO |
|
$ |
340,410 |
|
|
$ |
333,646 |
|
Preferred distributions |
|
|
(547 |
) |
|
|
(772 |
) |
Premium on redemption of Preferred Shares |
|
|
(1,444 |
) |
|
|
— |
|
FFO available to Common Shares and Units |
|
$ |
338,419 |
|
|
$ |
332,874 |
|
FFO per share and Unit – basic |
|
$ |
0.87 |
|
|
$ |
0.85 |
|
FFO per share and Unit – diluted |
|
$ |
0.87 |
|
|
$ |
0.85 |
|
|
|
|
|
|
|
|
||
Normalized FFO |
|
$ |
365,443 |
|
|
$ |
341,984 |
|
Preferred distributions |
|
|
(547 |
) |
|
|
(772 |
) |
Normalized FFO available to Common Shares and Units |
|
$ |
364,896 |
|
|
$ |
341,212 |
|
Normalized FFO per share and Unit – basic |
|
$ |
0.94 |
|
|
$ |
0.88 |
|
Normalized FFO per share and Unit – diluted |
|
$ |
0.93 |
|
|
$ |
0.87 |
|
|
|
|
|
|
|
|
||
Weighted average Common Shares and Units outstanding – basic |
|
|
389,481 |
|
|
|
389,851 |
|
Weighted average Common Shares and Units outstanding – diluted |
|
390,561 |
|
|
|
390,664 |
|
|
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) |
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March 31, |
|
December 31, |
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2024 |
|
2023 |
||||
ASSETS |
|
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|
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|
||
Land |
|
$ |
5,550,882 |
|
|
$ |
5,581,876 |
|
Depreciable property |
|
|
22,930,036 |
|
|
|
22,938,426 |
|
Projects under development |
|
|
155,729 |
|
|
|
78,036 |
|
Land held for development |
|
|
64,466 |
|
|
|
114,300 |
|
Investment in real estate |
|
|
28,701,113 |
|
|
|
28,712,638 |
|
Accumulated depreciation |
|
|
(9,978,012 |
) |
|
|
(9,810,337 |
) |
Investment in real estate, net |
|
|
18,723,101 |
|
|
|
18,902,301 |
|
Investments in unconsolidated entities1 |
|
|
289,272 |
|
|
|
282,049 |
|
Cash and cash equivalents |
|
|
44,535 |
|
|
|
50,743 |
|
Restricted deposits |
|
|
152,025 |
|
|
|
89,252 |
|
Right-of-use assets |
|
|
454,035 |
|
|
|
457,266 |
|
Other assets |
|
|
231,829 |
|
|
|
252,953 |
|
Total assets |
|
$ |
19,894,797 |
|
|
$ |
20,034,564 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Liabilities: |
|
|
|
|
|
|
||
Mortgage notes payable, net |
|
$ |
1,633,870 |
|
|
$ |
1,632,902 |
|
Notes, net |
|
|
5,349,938 |
|
|
|
5,348,417 |
|
Line of credit and commercial paper |
|
|
225,921 |
|
|
|
409,131 |
|
Accounts payable and accrued expenses |
|
|
146,072 |
|
|
|
87,377 |
|
Accrued interest payable |
|
|
49,190 |
|
|
|
65,716 |
|
Lease liabilities |
|
|
310,422 |
|
|
|
311,640 |
|
Other liabilities |
|
|
274,919 |
|
|
|
272,596 |
|
Security deposits |
|
|
68,818 |
|
|
|
69,178 |
|
Distributions payable |
|
|
263,615 |
|
|
|
259,231 |
|
Total liabilities |
|
|
8,322,765 |
|
|
|
8,456,188 |
|
|
|
|
|
|
|
|
||
Commitments and contingencies |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Redeemable Noncontrolling Interests – Operating Partnership |
|
|
298,219 |
|
|
|
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 March 31, 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; 378,939,751 shares issued |
||||||||
and outstanding as of March 31, 2024 and 379,291,417 |
||||||||
shares issued and outstanding as of December 31, 2023 |
|
|
3,789 |
|
|
|
3,793 |
|
Paid in capital |
|
|
9,603,743 |
|
|
|
9,601,866 |
|
Retained earnings |
|
|
1,436,671 |
|
|
|
1,437,185 |
|
Accumulated other comprehensive income (loss) |
|
|
6,314 |
|
|
|
5,704 |
|
Total shareholders’ equity |
|
|
11,067,672 |
|
|
|
11,085,828 |
|
Noncontrolling Interests: |
|
|
|
|
|
|
||
Operating Partnership |
|
|
207,272 |
|
|
|
202,306 |
|
Partially Owned Properties |
|
|
(1,131 |
) |
|
|
994 |
|
Total Noncontrolling Interests |
|
|
206,141 |
|
|
|
203,300 |
|
Total equity |
|
|
11,273,813 |
|
|
|
11,289,128 |
|
Total liabilities and equity |
|
$ |
19,894,797 |
|
|
$ |
20,034,564 |
|
1 Includes $227.3 million and $220.2 million in unconsolidated development projects as of March 31, 2024 and December 31, 2023, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects.
Equity Residential Portfolio Summary As of March 31, 2024 |
|
|
|
|
|
|
|
|
% of
|
|
|
Average |
|
||||
|
|
|
|
|
Apartment |
|
|
Budgeted |
|
|
Rental |
|
||||
Markets/Metro Areas |
|
Properties |
|
|
Units |
|
|
NOI |
|
|
Rate |
|
||||
Established Markets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Los Angeles |
|
|
58 |
|
|
|
14,732 |
|
|
|
17.3 |
% |
|
$ |
2,925 |
|
Orange County |
|
|
12 |
|
|
|
3,718 |
|
|
|
5.0 |
% |
|
|
2,900 |
|
San Diego |
|
|
12 |
|
|
|
2,878 |
|
|
|
4.1 |
% |
|
|
3,103 |
|
Subtotal – Southern California |
|
|
82 |
|
|
|
21,328 |
|
|
|
26.4 |
% |
|
|
2,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Washington, D.C. |
|
|
48 |
|
|
|
15,028 |
|
|
|
16.4 |
% |
|
|
2,666 |
|
San Francisco |
|
|
42 |
|
|
|
11,567 |
|
|
|
15.3 |
% |
|
|
3,282 |
|
New York |
|
|
34 |
|
|
|
8,536 |
|
|
|
14.2 |
% |
|
|
4,592 |
|
Boston |
|
|
26 |
|
|
|
7,077 |
|
|
|
11.7 |
% |
|
|
3,557 |
|
Seattle |
|
|
44 |
|
|
|
9,267 |
|
|
|
10.5 |
% |
|
|
2,569 |
|
Subtotal – Established Markets |
|
|
276 |
|
|
|
72,803 |
|
|
|
94.5 |
% |
|
|
3,146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expansion Markets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Denver |
|
|
9 |
|
|
|
2,792 |
|
|
|
2.8 |
% |
|
|
2,409 |
|
Atlanta |
|
|
7 |
|
|
|
2,111 |
|
|
|
1.6 |
% |
|
|
2,049 |
|
Dallas/Ft. Worth |
|
|
4 |
|
|
|
1,241 |
|
|
|
0.7 |
% |
|
|
1,905 |
|
Austin |
|
|
3 |
|
|
|
741 |
|
|
|
0.4 |
% |
|
|
1,842 |
|
Subtotal – Expansion Markets |
|
|
23 |
|
|
|
6,885 |
|
|
|
5.5 |
% |
|
|
2,148 |
|
Total |
|
|
299 |
|
|
|
79,688 |
|
|
|
100.0 |
% |
|
$ |
3,061 |
|
|
|
Properties |
|
Apartment Units |
Wholly Owned Properties |
|
285 |
|
76,628 |
Partially Owned Properties – Consolidated |
|
14 |
|
3,060 |
|
|
299 |
|
79,688 |
Note: Projects under development are not included in the Portfolio Summary until construction has been completed.
Equity Residential |
Portfolio Rollforward Q1 2024 ($ in thousands) |
||||||||||||||||
|
|
Properties |
|
Apartment
|
|
Sales Price |
|
Disposition
|
||||||||
12/31/2023 |
|
|
302 |
|
|
|
80,191 |
|
|
|
|
|
|
|
||
Dispositions: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consolidated Rental Properties |
|
|
(3 |
) |
|
|
(504 |
) |
|
$ |
(248,500 |
) |
|
|
(5.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Configuration Changes |
|
|
— |
|
|
|
1 |
|
|
|
|
|
|
|
||
3/31/2024 |
|
|
299 |
|
|
|
79,688 |
|
|
|
|
|
|
|
||
Equity Residential |
First Quarter 2024 vs. First Quarter 2023 Same Store Results/Statistics Including 77,373 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands except for Average Rental Rate) |
||||||||||||||||||||||||
|
|
Results |
|
Statistics |
||||||||||||||||||||
Description |
|
Revenues |
|
Expenses |
|
NOI |
|
Average
|
|
Physical
|
|
Turnover |
||||||||||||
Q1 2024 |
|
$ |
716,665 |
|
|
$ |
231,905 |
|
|
$ |
484,760 |
|
|
$ |
3,077 |
|
|
|
96.3 |
% |
|
|
8.6 |
% |
Q1 2023 |
|
$ |
688,303 |
|
|
$ |
228,961 |
|
|
$ |
459,342 |
|
|
$ |
2,975 |
|
|
|
95.9 |
% |
|
|
9.1 |
% |
Change |
|
$ |
28,362 |
|
|
$ |
2,944 |
|
|
$ |
25,418 |
|
|
$ |
102 |
|
|
|
0.4 |
% |
|
|
(0.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Change |
|
|
4.1 |
% |
(1) |
|
1.3 |
% |
|
|
5.5 |
% |
|
|
3.4 |
% |
|
|
|
|
|
|
||
First Quarter 2024 vs. Fourth Quarter 2023 Same Store Results/Statistics Including 77,950 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands except for Average Rental Rate) |
||||||||||||||||||||||||
|
|
Results |
|
Statistics |
||||||||||||||||||||
Description |
|
Revenues |
|
Expenses |
|
NOI |
|
Average
|
|
Physical
|
|
Turnover |
||||||||||||
Q1 2024 |
|
$ |
720,261 |
|
|
$ |
233,087 |
|
|
$ |
487,174 |
|
|
$ |
3,070 |
|
|
|
96.3 |
% |
|
|
8.6 |
% |
Q4 2023 |
|
$ |
712,383 |
|
|
$ |
218,881 |
|
|
$ |
493,502 |
|
|
$ |
3,067 |
|
|
|
95.8 |
% |
|
|
9.5 |
% |
Change |
|
$ |
7,878 |
|
|
$ |
14,206 |
|
|
$ |
(6,328 |
) |
|
$ |
3 |
|
|
|
0.5 |
% |
|
|
(0.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Change |
|
|
1.1 |
% |
(1) |
|
6.5 |
% |
|
|
(1.3 |
%) |
|
|
0.1 |
% |
|
|
|
|
|
|
||
(1) |
Non-Residential contributed 0.20% and 0.50% to quarterly and sequential same store revenue growth, respectively, primarily due to improved collectibility expectations for certain Non-Residential tenants, resulting in the reinstatement of their respective straight-line receivable balances in the first quarter of 2024. The Company contemplated these contributions in its previous 2024 annual guidance. |
Equity Residential |
Same Store Residential Revenues – GAAP to Cash Basis (1) ($ in thousands) |
|||||||||||||||
|
First Quarter 2024 vs. First Quarter 2023 |
|
First Quarter 2024 vs. Fourth Quarter 2023 |
||||||||||||
|
77,373 Same Store Apartment Units |
|
77,950 Same Store Apartment Units |
||||||||||||
|
Q1 2024 |
|
Q1 2023 |
|
Q1 2024 |
|
Q4 2023 |
||||||||
Same Store Residential Revenues (GAAP Basis) |
$ |
687,139 |
|
|
$ |
661,626 |
|
|
$ |
690,735 |
|
|
$ |
686,778 |
|
Leasing Concessions amortized |
|
5,076 |
|
|
|
2,801 |
|
|
|
5,093 |
|
|
|
4,810 |
|
Leasing Concessions granted (2) |
|
(4,951 |
) |
|
|
(4,167 |
) |
|
|
(4,955 |
) |
|
|
(5,392 |
) |
Same Store Residential Revenues with Leasing |
|||||||||||||||
Concessions on a cash basis |
$ |
687,264 |
|
|
$ |
660,260 |
|
|
$ |
690,873 |
|
|
$ |
686,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
% change - GAAP revenue |
|
3.9 |
% |
|
|
|
|
|
0.6 |
% |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||
% change - cash revenue |
|
4.1 |
% |
|
|
|
|
|
0.7 |
% |
|
|
|
||
(1) |
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail. |
(2) |
Concession usage is primarily concentrated in Los Angeles, San Francisco and Seattle. |
Same Store Net Operating Income By Quarter Including 77,373 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands) |
||||||||||||||||||||
|
|
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
||||||||||
Same store revenues |
|
$ |
716,665 |
|
|
$ |
708,665 |
|
|
$ |
704,606 |
|
|
$ |
700,114 |
|
|
$ |
688,303 |
|
Same store expenses |
|
|
231,905 |
|
|
|
217,880 |
|
|
|
223,739 |
|
|
|
219,571 |
|
|
|
228,961 |
|
Same store NOI |
|
$ |
484,760 |
|
|
$ |
490,785 |
|
|
$ |
480,867 |
|
|
$ |
480,543 |
|
|
$ |
459,342 |
|
Equity Residential |
Same Store Residential Accounts Receivable Balances Including 77,373 Same Store Apartment Units ($ in thousands) |
||||||||||||
Balance Sheet (Other assets): |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
||||||
Residential accounts receivable balances |
|
$ |
18,290 |
|
|
$ |
21,021 |
|
|
$ |
32,210 |
|
Allowance for doubtful accounts |
|
|
(13,204 |
) |
|
|
(15,485 |
) |
|
|
(28,237 |
) |
Net receivable balances |
$ |
5,086 |
|
|
$ |
5,536 |
|
|
$ |
3,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Straight-line receivable balances |
|
$ |
8,337 |
|
(1) |
$ |
8,461 |
|
|
$ |
5,702 |
|
(1) |
Total same store Residential Leasing Concessions granted in the first quarter of 2024 were approximately $5.0 million. The straight-line receivable balance of $8.3 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in the remainder of 2024 and the first quarter of 2025. |
Same Store Residential Bad Debt Including 77,373 Same Store Apartment Units ($ in thousands) |
||||||||||||
Income Statement (Rental income): |
|
Q1 2024 |
|
Q4 2023 |
|
Q1 2023 |
||||||
Bad debts before governmental rental assistance |
|
$ |
9,187 |
|
|
$ |
9,325 |
|
|
$ |
11,896 |
|
Governmental rental assistance received |
|
(379 |
) |
|
|
(379 |
) |
|
|
(1,161 |
) |
|
Bad Debt, Net |
|
$ |
8,808 |
|
|
$ |
8,946 |
|
|
$ |
10,735 |
|
|
|
|
|
|
|
|
|
|
|
|||
Bad Debt, Net as a % of Same Store Residential Revenues |
|
1.3 |
% |
|
|
1.3 |
% |
|
|
1.6 |
% |
|
Equity Residential First Quarter 2024 vs. First Quarter 2023 Same Store Residential Results/Statistics by Market |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Year's Quarter |
|||||||||||||||||||||||||||
Markets/Metro Areas |
|
Apartment
|
|
Q1 2024
|
|
Q1 2024
|
|
Q1 2024
|
|
Q1 2024
|
|
Revenues |
|
Expenses |
|
NOI |
|
Average
|
|
Physical
|
|
Turnover |
||||||||||||||||||||||
Los Angeles |
|
|
14,135 |
|
|
|
17.5 |
% |
|
$ |
2,922 |
|
|
|
95.5 |
% |
|
|
9.6 |
% |
|
|
5.2 |
% |
|
|
1.5 |
% |
|
|
7.0 |
% |
|
|
5.2 |
% |
|
|
0.0 |
% |
|
|
(0.4 |
%) |
Orange County |
|
|
3,718 |
|
|
|
5.2 |
% |
|
|
2,900 |
|
|
|
96.1 |
% |
|
|
7.4 |
% |
|
|
5.9 |
% |
|
|
3.5 |
% |
|
|
6.6 |
% |
|
|
5.9 |
% |
|
|
(0.1 |
%) |
|
|
(0.1 |
%) |
San Diego |
|
|
2,878 |
|
|
|
4.3 |
% |
|
|
3,103 |
|
|
|
96.1 |
% |
|
|
8.0 |
% |
|
|
6.5 |
% |
|
|
1.1 |
% |
|
|
8.2 |
% |
|
|
5.7 |
% |
|
|
0.7 |
% |
|
|
(1.7 |
%) |
Subtotal – Southern California |
|
20,731 |
|
|
|
27.0 |
% |
|
|
2,943 |
|
|
|
95.7 |
% |
|
|
9.0 |
% |
|
|
5.5 |
% |
|
|
1.7 |
% |
|
|
7.1 |
% |
|
|
5.4 |
% |
|
|
0.1 |
% |
|
|
(0.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Washington, D.C. |
|
|
14,716 |
|
|
|
16.9 |
% |
|
|
2,665 |
|
|
|
97.1 |
% |
|
|
7.0 |
% |
|
|
5.5 |
% |
|
|
(1.9 |
%) |
|
|
9.4 |
% |
|
|
5.0 |
% |
|
|
0.5 |
% |
|
|
(0.4 |
%) |
San Francisco |
|
|
11,345 |
|
|
|
15.8 |
% |
|
|
3,281 |
|
|
|
96.4 |
% |
|
|
9.5 |
% |
|
|
2.0 |
% |
|
|
2.3 |
% |
|
|
1.9 |
% |
|
|
1.2 |
% |
|
|
0.7 |
% |
|
|
0.1 |
% |
New York |
|
|
8,536 |
|
|
|
14.1 |
% |
|
|
4,592 |
|
|
|
97.0 |
% |
|
|
6.5 |
% |
|
|
3.9 |
% |
|
|
3.2 |
% |
|
|
4.5 |
% |
|
|
3.7 |
% |
|
|
0.2 |
% |
|
|
(1.0 |
%) |
Boston |
|
|
7,077 |
|
|
|
11.0 |
% |
|
|
3,557 |
|
|
|
95.7 |
% |
|
|
7.4 |
% |
|
|
4.8 |
% |
|
|
(2.2 |
%) |
|
|
8.0 |
% |
|
|
4.6 |
% |
|
|
0.2 |
% |
|
|
(0.6 |
%) |
Seattle |
|
|
9,266 |
|
|
|
10.4 |
% |
|
|
2,569 |
|
|
|
96.1 |
% |
|
|
9.7 |
% |
|
|
0.4 |
% |
|
|
5.0 |
% |
|
|
(1.4 |
%) |
|
|
(0.6 |
%) |
|
|
1.0 |
% |
|
|
(1.4 |
%) |
Denver |
|
|
2,505 |
|
|
|
2.6 |
% |
|
|
2,415 |
|
|
|
96.3 |
% |
|
|
10.1 |
% |
|
|
1.3 |
% |
|
|
(0.5 |
%) |
|
|
2.1 |
% |
|
|
1.6 |
% |
|
|
0.0 |
% |
|
|
(1.0 |
%) |
Other Expansion Markets |
|
|
3,197 |
|
|
|
2.2 |
% |
|
|
1,973 |
|
|
|
95.5 |
% |
|
|
13.3 |
% |
|
|
0.9 |
% |
|
|
(4.2 |
%) |
|
|
5.3 |
% |
|
|
0.1 |
% |
|
|
0.6 |
% |
|
|
0.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
|
|
77,373 |
|
|
|
100.0 |
% |
|
$ |
3,077 |
|
|
|
96.3 |
% |
|
|
8.6 |
% |
|
|
3.9 |
% |
|
|
1.2 |
% |
|
|
5.2 |
% |
|
|
3.4 |
% |
|
|
0.4 |
% |
|
|
(0.5 |
%) |
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.0% of total revenues for the quarter ended March 31, 2024. |
||||||||||||||||||||||||||||||||||||||||||||
Equity Residential First Quarter 2024 vs. Fourth Quarter 2023 Same Store Residential Results/Statistics by Market |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Quarter |
|||||||||||||||||||||||||||
Markets/Metro Areas |
|
Apartment
|
|
Q1 2024
|
|
Q1 2024
|
|
Q1 2024
|
|
Q1 2024
|
|
Revenues |
|
Expenses |
|
NOI |
|
Average
|
|
Physical
|
|
Turnover |
||||||||||||||||||||||
Los Angeles |
|
|
14,135 |
|
|
|
17.3 |
% |
|
$ |
2,922 |
|
|
|
95.5 |
% |
|
|
9.6 |
% |
|
|
0.9 |
% |
|
|
8.0 |
% |
|
|
(2.2 |
%) |
|
|
0.4 |
% |
|
|
0.4 |
% |
|
|
(1.3 |
%) |
Orange County |
|
|
3,718 |
|
|
|
5.2 |
% |
|
|
2,900 |
|
|
|
96.1 |
% |
|
|
7.4 |
% |
|
|
0.2 |
% |
|
|
5.4 |
% |
|
|
(1.2 |
%) |
|
|
0.3 |
% |
|
|
(0.2 |
%) |
|
|
(1.3 |
%) |
San Diego |
|
|
2,878 |
|
|
|
4.3 |
% |
|
|
3,103 |
|
|
|
96.1 |
% |
|
|
8.0 |
% |
|
|
0.7 |
% |
|
|
4.7 |
% |
|
|
(0.4 |
%) |
|
|
(0.2 |
%) |
|
|
0.8 |
% |
|
|
(3.3 |
%) |
Subtotal – Southern California |
|
20,731 |
|
|
|
26.8 |
% |
|
|
2,943 |
|
|
|
95.7 |
% |
|
|
9.0 |
% |
|
|
0.7 |
% |
|
|
7.3 |
% |
|
|
(1.7 |
%) |
|
|
0.3 |
% |
|
|
0.4 |
% |
|
|
(1.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Washington, D.C. |
|
|
14,716 |
|
|
|
16.8 |
% |
|
|
2,665 |
|
|
|
97.1 |
% |
|
|
7.0 |
% |
|
|
0.6 |
% |
|
|
4.8 |
% |
|
|
(1.3 |
%) |
|
|
0.4 |
% |
|
|
0.1 |
% |
|
|
(1.2 |
%) |
San Francisco |
|
|
11,345 |
|
|
|
15.7 |
% |
|
|
3,281 |
|
|
|
96.4 |
% |
|
|
9.5 |
% |
|
|
0.6 |
% |
|
|
8.2 |
% |
|
|
(2.7 |
%) |
|
|
(0.6 |
%) |
|
|
1.1 |
% |
|
|
(1.4 |
%) |
New York |
|
|
8,536 |
|
|
|
14.0 |
% |
|
|
4,592 |
|
|
|
97.0 |
% |
|
|
6.5 |
% |
|
|
1.0 |
% |
|
|
6.7 |
% |
|
|
(2.8 |
%) |
|
|
0.6 |
% |
|
|
0.4 |
% |
|
|
(0.4 |
%) |
Boston |
|
|
7,077 |
|
|
|
11.0 |
% |
|
|
3,557 |
|
|
|
95.7 |
% |
|
|
7.4 |
% |
|
|
(0.4 |
%) |
|
|
3.3 |
% |
|
|
(1.9 |
%) |
|
|
(0.3 |
%) |
|
|
(0.1 |
%) |
|
|
(1.2 |
%) |
Seattle |
|
|
9,266 |
|
|
|
10.4 |
% |
|
|
2,569 |
|
|
|
96.1 |
% |
|
|
9.7 |
% |
|
|
1.2 |
% |
|
|
8.3 |
% |
|
|
(1.5 |
%) |
|
|
0.3 |
% |
|
|
0.8 |
% |
|
|
1.5 |
% |
Denver |
|
|
2,792 |
|
|
|
2.9 |
% |
|
|
2,409 |
|
|
|
96.2 |
% |
|
|
10.5 |
% |
|
|
0.1 |
% |
|
|
6.6 |
% |
|
|
(2.5 |
%) |
|
|
(0.1 |
%) |
|
|
0.2 |
% |
|
|
(1.3 |
%) |
Other Expansion Markets |
|
|
3,487 |
|
|
|
2.4 |
% |
|
|
1,979 |
|
|
|
95.3 |
% |
|
|
13.3 |
% |
|
|
(1.1 |
%) |
|
|
6.9 |
% |
|
|
(6.4 |
%) |
|
|
(1.5 |
%) |
|
|
0.5 |
% |
|
|
0.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
|
|
77,950 |
|
|
|
100.0 |
% |
|
$ |
3,070 |
|
|
|
96.3 |
% |
|
|
8.6 |
% |
|
|
0.6 |
% |
|
|
6.5 |
% |
|
|
(2.1 |
%) |
|
|
0.1 |
% |
|
|
0.5 |
% |
|
|
(0.9 |
%) |
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.0% of total revenues for the quarter ended March 31, 2024. |
||||||||||||||||||||||||||||||||||||||||||||
Equity Residential |
Same Store Residential Net Effective Lease Pricing Statistics For 77,373 Same Store Apartment Units |
||||||||||||||||||||||||
|
|
New Lease Change (1) |
|
Renewal Rate Achieved (1) |
|
Blended Rate (1) |
||||||||||||||||||
Markets/Metro Areas |
|
Q1 2024 |
|
Q4 2023 |
|
Q1 2024 |
|
Q4 2023 |
|
Q1 2024 |
|
Q4 2023 |
||||||||||||
Southern California |
|
|
(3.6 |
%) |
|
|
(3.1 |
%) |
|
|
4.4 |
% |
|
|
5.2 |
% |
|
|
0.5 |
% |
|
|
1.2 |
% |
San Francisco |
|
|
(1.2 |
%) |
|
|
(9.7 |
%) |
|
|
4.1 |
% |
|
|
4.4 |
% |
|
|
1.6 |
% |
|
|
(3.1 |
%) |
Washington, D.C. |
|
|
1.6 |
% |
|
|
0.6 |
% |
|
|
5.8 |
% |
|
|
6.2 |
% |
|
|
4.0 |
% |
|
|
3.8 |
% |
New York |
|
|
(1.1 |
%) |
|
|
(2.2 |
%) |
|
|
4.1 |
% |
|
|
4.5 |
% |
|
|
2.2 |
% |
|
|
2.1 |
% |
Seattle |
|
|
(1.2 |
%) |
|
|
(8.4 |
%) |
|
|
6.1 |
% |
|
|
5.6 |
% |
|
|
2.8 |
% |
|
|
(1.4 |
%) |
Boston |
|
|
(3.4 |
%) |
|
|
(1.0 |
%) |
|
|
5.2 |
% |
|
|
5.3 |
% |
|
|
1.0 |
% |
|
|
2.8 |
% |
Denver |
|
|
(6.3 |
%) |
|
|
(5.1 |
%) |
|
|
4.3 |
% |
|
|
4.7 |
% |
|
|
(2.0 |
%) |
|
|
(0.3 |
%) |
Other Expansion Markets |
|
|
(8.7 |
%) |
|
|
(12.2 |
%) |
|
|
4.1 |
% |
|
|
4.8 |
% |
|
|
(3.7 |
%) |
|
|
(5.1 |
%) |
Total |
|
|
(2.2 |
%) |
|
|
(4.6 |
%) |
|
|
4.7 |
% |
|
|
5.1 |
% |
|
|
1.6 |
% |
|
|
0.7 |
% |
(1) |
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions. See page 3 for April 2024 preliminary data. |
Equity Residential |
First Quarter 2024 vs. First Quarter 2023 Total Same Store Operating Expenses Including 77,373 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands) |
||||||||||||||||||||
|
|
Q1 2024 |
|
Q1 2023 |
|
$
|
|
%
|
|
% of
|
||||||||||
Real estate taxes |
|
$ |
94,205 |
|
|
$ |
90,844 |
|
|
$ |
3,361 |
|
|
|
3.7 |
% |
|
|
40.6 |
% |
On-site payroll |
|
|
43,119 |
|
|
|
42,813 |
|
|
|
306 |
|
|
|
0.7 |
% |
|
|
18.6 |
% |
Utilities |
|
|
37,234 |
|
|
|
39,197 |
|
|
|
(1,963 |
) |
|
|
(5.0 |
%) |
|
|
16.1 |
% |
Repairs and maintenance |
|
|
29,888 |
|
|
|
30,546 |
|
|
|
(658 |
) |
|
|
(2.2 |
%) |
|
|
12.9 |
% |
Insurance |
|
|
9,341 |
|
|
|
8,459 |
|
|
|
882 |
|
|
|
10.4 |
% |
|
|
4.0 |
% |
Leasing and advertising |
|
|
2,375 |
|
|
|
2,591 |
|
|
|
(216 |
) |
|
|
(8.3 |
%) |
|
|
1.0 |
% |
Other on-site operating expenses |
|
|
15,743 |
|
|
|
14,511 |
|
|
|
1,232 |
|
|
|
8.5 |
% |
|
|
6.8 |
% |
Total Same Store Operating Expenses (2) |
|
$ |
231,905 |
|
|
$ |
228,961 |
|
|
$ |
2,944 |
|
|
|
1.3 |
% |
|
|
100.0 |
% |
(1) |
The quarter-over-quarter changes were primarily driven by the following factors: |
|
|
|
Real estate taxes – Increase due to escalation in rates and assessed values including an approximately 1.0% 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 – Modest increase due primarily to higher wages partially offset by the impact of various innovation initiatives. |
|
|
|
Utilities – Decrease from electric primarily driven by lower commodity prices. |
|
|
|
Repairs and maintenance – Decrease due primarily to lower resident Turnover compared to the same period of 2023, moderation of previous wage/staffing pressures and a benefit from a relatively easy comparable period. |
|
|
|
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 March 31, 2024 ($ in thousands) |
||||||||||||||||
|
|
Debt
|
|
% of Total |
|
Weighted
|
|
Weighted
|
||||||||
Secured |
|
$ |
1,633,870 |
|
|
|
22.7 |
% |
|
|
3.84 |
% |
|
|
7.6 |
|
Unsecured |
|
|
5,575,859 |
|
|
|
77.3 |
% |
|
|
3.65 |
% |
|
|
8.2 |
|
Total |
|
$ |
7,209,729 |
|
|
|
100.0 |
% |
|
|
3.69 |
% |
|
|
8.1 |
|
Fixed Rate Debt: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Secured – Conventional |
|
$ |
1,399,221 |
|
|
|
19.4 |
% |
|
|
3.89 |
% |
|
|
7.1 |
|
Unsecured – Public |
|
|
5,349,938 |
|
|
|
74.2 |
% |
|
|
3.53 |
% |
|
|
8.6 |
|
Fixed Rate Debt |
|
|
6,749,159 |
|
|
|
93.6 |
% |
|
|
3.60 |
% |
|
|
8.3 |
|
Floating Rate Debt: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Secured – Tax Exempt |
|
|
234,649 |
|
|
|
3.3 |
% |
|
|
3.49 |
% |
|
|
10.4 |
|
Unsecured – Revolving Credit Facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3.6 |
|
Unsecured – Commercial Paper Program (2) |
|
|
225,921 |
|
|
|
3.1 |
% |
|
|
5.60 |
% |
|
|
— |
|
Floating Rate Debt |
|
|
460,570 |
|
|
|
6.4 |
% |
|
|
4.72 |
% |
|
|
5.4 |
|
Total |
|
$ |
7,209,729 |
|
|
|
100.0 |
% |
|
|
3.69 |
% |
|
|
8.1 |
|
(1) |
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. |
(2) |
At March 31, 2024, the weighted average maturity of commercial paper outstanding was 3 days. The weighted average amount outstanding for the quarter ended March 31, 2024 was approximately $333.1 million. |
Note: The Company capitalized interest of approximately $3.1 million and $3.4 million during the quarters ended March 31, 2024 and 2023, respectively. |
|
Equity Residential |
Debt Maturity Schedule as of March 31, 2024 ($ in thousands) |
||||||||||||||||||||||||
Year |
|
Fixed
|
|
Floating
|
|
Total |
|
% of Total |
|
Weighted
|
|
Weighted
|
||||||||||||
2024 |
|
$ |
— |
|
|
$ |
232,200 |
|
(2) |
$ |
232,200 |
|
|
|
3.2 |
% |
|
|
— |
|
|
|
5.46 |
% |
2025 |
|
|
450,000 |
|
|
|
8,100 |
|
|
|
458,100 |
|
|
|
6.3 |
% |
|
|
3.38 |
% |
|
|
3.38 |
% |
2026 |
|
|
592,025 |
|
|
|
9,000 |
|
|
|
601,025 |
|
|
|
8.3 |
% |
|
|
3.58 |
% |
|
|
3.58 |
% |
2027 |
|
|
400,000 |
|
|
|
9,800 |
|
|
|
409,800 |
|
|
|
5.6 |
% |
|
|
3.25 |
% |
|
|
3.26 |
% |
2028 |
|
|
900,000 |
|
|
|
10,700 |
|
|
|
910,700 |
|
|
|
12.5 |
% |
|
|
3.79 |
% |
|
|
3.79 |
% |
2029 |
|
|
888,120 |
|
|
|
11,500 |
|
|
|
899,620 |
|
|
|
12.4 |
% |
|
|
3.30 |
% |
|
|
3.31 |
% |
2030 |
|
|
1,148,462 |
|
|
|
12,700 |
|
|
|
1,161,162 |
|
|
|
15.9 |
% |
|
|
2.53 |
% |
|
|
2.54 |
% |
2031 |
|
|
528,500 |
|
|
|
39,800 |
|
|
|
568,300 |
|
|
|
7.8 |
% |
|
|
1.94 |
% |
|
|
2.05 |
% |
2032 |
|
|
— |
|
|
|
28,000 |
|
|
|
28,000 |
|
|
|
0.4 |
% |
|
|
— |
|
|
|
3.70 |
% |
2033 |
|
|
550,000 |
|
|
|
2,300 |
|
|
|
552,300 |
|
|
|
7.6 |
% |
|
|
5.22 |
% |
|
|
5.22 |
% |
2034+ |
|
|
1,350,850 |
|
|
|
108,600 |
|
|
|
1,459,450 |
|
|
|
20.0 |
% |
|
|
4.39 |
% |
|
|
4.27 |
% |
Subtotal |
|
|
6,807,957 |
|
|
|
472,700 |
|
|
|
7,280,657 |
|
|
|
100.0 |
% |
|
|
3.53 |
% |
|
|
3.58 |
% |
Deferred Financing Costs and Unamortized (Discount) |
|
|
(58,798 |
) |
|
|
(12,130 |
) |
|
|
(70,928 |
) |
|
N/A |
|
|
N/A |
|
|
N/A |
|
|||
Total |
|
$ |
6,749,159 |
|
|
$ |
460,570 |
|
|
$ |
7,209,729 |
|
|
|
100.0 |
% |
|
|
3.53 |
% |
|
|
3.58 |
% |
(1) |
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. |
(2) |
Includes $226.0 million in principal outstanding on the Company's Commercial Paper Program. |
Equity Residential |
Selected Unsecured Public Debt Covenants |
||||
|
|
March 31, |
|
December 31, |
|
|
2024 |
|
2023 |
Debt to Adjusted Total Assets (not to exceed 60%) |
|
25.8% |
|
26.5% |
|
|
|
|
|
Secured Debt to Adjusted Total Assets (not to exceed 40%) |
|
6.7% |
|
6.7% |
|
|
|
|
|
Consolidated Income Available for Debt Service to |
||||
Maximum Annual Service Charges |
||||
(must be at least 1.5 to 1) |
|
6.41 |
|
6.19 |
|
|
|
|
|
Total Unencumbered Assets to Unsecured Debt |
||||
(must be at least 125%) |
|
528.1% |
|
510.7% |
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 |
||||
|
|
March 31, |
|
December 31, |
|
|
2024 |
|
2023 |
Total debt to Normalized EBITDAre |
|
4.01x |
|
4.17x |
|
|
|
|
|
Net debt to Normalized EBITDAre |
|
3.97x |
|
4.12x |
|
|
|
|
|
Unencumbered NOI as a % of total NOI |
|
89.6% |
|
89.8% |
Note: See Normalized EBITDAre Reconciliations for detail. |
||||
Equity Residential |
Capital Structure as of March 31, 2024 (Amounts in thousands except for share/unit and per share amounts) |
||||||||||||||||||||
Secured Debt |
|
|
|
|
|
|
|
$ |
1,633,870 |
|
|
|
22.7 |
% |
|
|
|
|||
Unsecured Debt |
|
|
|
|
|
|
|
|
5,575,859 |
|
|
|
77.3 |
% |
|
|
|
|||
Total Debt |
|
|
|
|
|
|
|
|
7,209,729 |
|
|
|
100.0 |
% |
|
|
22.6 |
% |
||
Common Shares (includes Restricted Shares) |
|
|
378,939,751 |
|
|
|
97.0 |
% |
|
|
|
|
|
|
|
|
|
|||
Units (includes OP Units and Restricted Units) |
|
|
11,732,622 |
|
|
|
3.0 |
% |
|
|
|
|
|
|
|
|
|
|||
Total Shares and Units |
|
|
390,672,373 |
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|||
Common Share Price at March 31, 2024 |
|
$ |
63.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
24,655,333 |
|
|
|
99.9 |
% |
|
|
|
|||
Perpetual Preferred Equity (see below) |
|
|
|
|
|
|
|
|
17,155 |
|
|
|
0.1 |
% |
|
|
|
|||
Total Equity |
|
|
|
|
|
|
|
|
24,672,488 |
|
|
|
100.0 |
% |
|
|
77.4 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total Market Capitalization |
|
|
|
|
|
|
|
$ |
31,882,217 |
|
|
|
|
|
|
100.0 |
% |
|||
Perpetual Preferred Equity as of March 31, 2024 (Amounts in thousands except for share and per share amounts) |
||||||||||||||||||
Series |
|
Call Date |
|
Outstanding
|
|
|
Liquidation
|
|
|
Annual
|
|
|
Annual
|
|
||||
Preferred Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
8.29% Series K (1) |
|
12/10/26 |
|
|
343,100 |
|
|
$ |
17,155 |
|
|
$ |
4.145 |
|
|
$ |
1,422 |
|
(1) |
During the first quarter of 2024, the Company repurchased and retired 402,500 Series K Preferred Shares with a liquidation value of $20.1 million for total cash consideration of approximately $21.8 million. As a result of this partial redemption, the Company incurred a cash charge of approximately $1.4 million which was recorded as a premium on the redemption of preferred shares, which impacted EPS and FFO per share but did not impact Normalized FFO per share. |
Equity Residential Common Share and Unit Weighted Average Amounts Outstanding |
|
|
Q1 2024 |
|
Q1 2023 |
||||
Weighted Average Amounts Outstanding for Net Income Purposes: |
|
|
|
|
|
|
||
Common Shares - basic |
|
|
378,811,922 |
|
|
|
378,340,876 |
|
Shares issuable from assumed conversion/vesting of: |
|
|
|
|
|
|
||
- OP Units |
|
|
10,669,346 |
|
|
|
11,509,669 |
|
- long-term compensation shares/units |
|
|
1,079,917 |
|
|
|
813,581 |
|
Total Common Shares and Units - diluted |
|
|
390,561,185 |
|
|
|
390,664,126 |
|
|
|
|
|
|
|
|
||
Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes: |
|
|
|
|
|
|
||
Common Shares - basic |
|
|
378,811,922 |
|
|
|
378,340,876 |
|
OP Units - basic |
|
|
10,669,346 |
|
|
|
11,509,669 |
|
Total Common Shares and OP Units - basic |
|
|
389,481,268 |
|
|
|
389,850,545 |
|
Shares issuable from assumed conversion/vesting of: |
|
|
|
|
|
|
||
- long-term compensation shares/units |
|
|
1,079,917 |
|
|
|
813,581 |
|
Total Common Shares and Units - diluted |
|
|
390,561,185 |
|
|
|
390,664,126 |
|
|
|
|
|
|
|
|
||
Period Ending Amounts Outstanding: |
|
|
|
|
|
|
||
Common Shares (includes Restricted Shares) |
|
|
378,939,751 |
|
|
|
378,898,221 |
|
Units (includes OP Units and Restricted Units) |
|
|
11,732,622 |
|
|
|
12,515,083 |
|
Total Shares and Units |
|
|
390,672,373 |
|
|
|
391,413,304 |
|
Equity Residential Development and Lease-Up Projects as of March 31, 2024 (Amounts in thousands except for project and apartment unit amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated/Actual |
|
|
||||||||||
Projects |
|
Location |
|
Ownership
|
|
No. of
|
|
|
Total
|
|
|
Total
|
|
|
Total
|
|
|
Percentage
|
|
Start
|
|
Initial
|
|
Completion
|
|
Stabilization
|
|
Percentage
|
||||
CONSOLIDATED: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Projects Under Development: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Laguna Clara II |
|
Santa Clara, CA |
|
100% |
|
|
225 |
|
|
$ |
152,621 |
|
|
$ |
91,314 |
|
|
$ |
— |
|
|
63% |
|
Q2 2022 |
|
Q4 2024 |
|
Q1 2025 |
|
Q4 2025 |
|
– / – |
The Basin |
|
Wakefield, MA |
|
95% |
|
|
440 |
|
|
|
232,172 |
|
|
|
64,415 |
|
|
|
— |
|
|
11% |
|
Q1 2024 |
|
Q4 2025 |
|
Q3 2026 |
|
Q2 2027 |
|
– / – |
Projects Under Development - Consolidated |
|
|
|
|
665 |
|
|
|
384,793 |
|
|
|
155,729 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Projects Completed Not Stabilized: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Reverb (fka 9th and W) (2) |
|
Washington, D.C. |
|
92% |
|
|
312 |
|
|
|
108,027 |
|
|
|
104,795 |
|
|
|
— |
|
|
100% |
|
Q3 2021 |
|
Q2 2023 |
|
Q2 2023 |
|
Q3 2024 |
|
96% / 93% |
Projects Completed Not Stabilized - Consolidated |
|
|
|
|
312 |
|
|
|
108,027 |
|
|
|
104,795 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
UNCONSOLIDATED: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Projects Under Development: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Alloy Sunnyside |
|
Denver, CO |
|
80% |
|
|
209 |
|
|
|
70,004 |
|
|
|
64,752 |
|
|
|
28,682 |
|
|
95% |
|
Q3 2021 |
|
Q2 2024 |
|
Q2 2024 |
|
Q1 2025 |
|
– / – |
Alexan Harrison |
|
Harrison, NY |
|
62% |
|
|
450 |
|
|
|
200,664 |
|
|
|
184,242 |
|
|
|
88,605 |
|
|
95% |
|
Q3 2021 |
|
Q1 2024 |
|
Q4 2024 |
|
Q2 2026 |
|
9% / 2% |
Solana Beeler Park |
|
Denver, CO |
|
90% |
|
|
270 |
|
|
|
85,206 |
|
|
|
63,617 |
|
|
|
28,342 |
|
|
74% |
|
Q4 2021 |
|
Q2 2024 |
|
Q3 2024 |
|
Q1 2025 |
|
– / – |
Remy (Toll) |
|
Frisco, TX |
|
75% |
|
|
357 |
|
|
|
98,937 |
|
|
|
85,096 |
|
|
|
39,336 |
|
|
86% |
|
Q1 2022 |
|
Q2 2024 |
|
Q4 2024 |
|
Q3 2025 |
|
7% / – |
Sadie (fka Settler) (Toll) |
|
Fort Worth, TX |
|
75% |
|
|
362 |
|
|
|
82,775 |
|
|
|
63,612 |
|
|
|
22,058 |
|
|
82% |
|
Q2 2022 |
|
Q2 2024 |
|
Q3 2024 |
|
Q3 2025 |
|
2% / – |
Lyle (Toll) (2) |
|
Dallas, TX |
|
75% |
|
|
334 |
|
|
|
86,332 |
|
|
|
66,296 |
|
|
|
26,390 |
|
|
84% |
|
Q3 2022 |
|
Q1 2024 |
|
Q3 2024 |
|
Q1 2026 |
|
5% / 2% |
Projects Under Development - Unconsolidated |
|
|
|
|
1,982 |
|
|
|
623,918 |
|
|
|
527,615 |
|
|
|
233,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Development Projects - Consolidated |
|
|
|
|
|
|
977 |
|
|
|
492,820 |
|
|
|
260,524 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Development Projects - Unconsolidated |
|
|
|
|
|
|
1,982 |
|
|
|
623,918 |
|
|
|
527,615 |
|
|
|
233,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Development Projects |
|
|
|
|
|
|
2,959 |
|
|
$ |
1,116,738 |
|
|
$ |
788,139 |
|
|
$ |
233,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS |
Total Budgeted
|
|
Q1 2024
|
||||
Projects Under Development - Consolidated |
$ |
384,793 |
|
|
$ |
— |
|
Projects Completed Not Stabilized - Consolidated |
|
108,027 |
|
|
|
1,019 |
|
Projects Under Development - Unconsolidated |
|
623,918 |
|
|
|
(235 |
) |
|
$ |
1,116,738 |
|
|
$ |
784 |
|
(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 parcels under these projects are subject to long-term ground leases. |
Equity Residential Capital Expenditures to Real Estate For the Quarter Ended March 31, 2024 (Amounts in thousands except for apartment unit and per apartment unit amounts) |
|
|
Same Store
|
|
Non-Same Store
|
|
Total |
|
Same Store Avg.
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Apartment Units |
|
|
77,373 |
|
|
|
2,315 |
|
|
|
79,688 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Building Improvements |
|
$ |
28,741 |
|
|
$ |
3,340 |
|
(2) |
$ |
32,081 |
|
|
$ |
371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Renovation Expenditures |
|
|
22,280 |
|
(1) |
|
4,055 |
|
(2) |
|
26,335 |
|
|
|
288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Replacements |
|
|
15,050 |
|
|
|
54 |
|
|
|
15,104 |
|
|
|
195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Capital Expenditures to Real Estate (3) |
|
$ |
66,071 |
|
|
$ |
7,449 |
|
|
$ |
73,520 |
|
|
$ |
854 |
|
(1) |
Renovation Expenditures on 690 same store apartment units for the quarter ended March 31, 2024 approximated $32,289 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 is expected to continue through the second quarter of 2024 with the other continuing into 2025. |
(3) |
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. |
Note: Approximately $29.3 million of the Company's Capital Expenditures to Real Estate for Same Store Properties for the quarter ended March 31, 2024 were NOI-Enhancing, including the $22.3 million of Renovation Expenditures 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 |
||||||||||||||||||||||
|
|
March 31, 2024 |
|
December 31, 2023 |
|
Q1 |
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
||||||||||||||
Net income |
|
$ |
953,449 |
|
|
$ |
868,488 |
|
|
$ |
305,032 |
|
|
$ |
322,269 |
|
|
$ |
181,286 |
|
|
$ |
144,862 |
|
|
$ |
220,071 |
|
Interest expense incurred, net |
|
|
270,367 |
|
|
|
269,556 |
|
|
|
67,212 |
|
|
|
68,674 |
|
|
|
68,891 |
|
|
|
65,590 |
|
|
|
66,401 |
|
Amortization of deferred financing costs |
|
|
8,880 |
|
|
|
8,941 |
|
|
|
1,918 |
|
|
|
1,918 |
|
|
|
3,027 |
|
|
|
2,017 |
|
|
|
1,979 |
|
Amortization of above/below market lease intangibles |
|
|
4,464 |
|
|
|
4,464 |
|
|
|
1,116 |
|
|
|
1,116 |
|
|
|
1,116 |
|
|
|
1,116 |
|
|
|
1,116 |
|
Depreciation |
|
|
898,574 |
|
|
|
888,709 |
|
|
|
225,695 |
|
|
|
226,788 |
|
|
|
224,736 |
|
|
|
221,355 |
|
|
|
215,830 |
|
Income and other tax expense (benefit) |
|
|
1,154 |
|
|
|
1,148 |
|
|
|
304 |
|
|
|
256 |
|
|
|
258 |
|
|
|
336 |
|
|
|
298 |
|
EBITDA |
|
|
2,136,888 |
|
|
|
2,041,306 |
|
|
|
601,277 |
|
|
|
621,021 |
|
|
|
479,314 |
|
|
|
435,276 |
|
|
|
505,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net (gain) loss on sales of real estate properties |
|
|
(370,515 |
) |
|
|
(282,539 |
) |
|
|
(188,185 |
) |
|
|
(155,505 |
) |
|
|
(26,912 |
) |
|
|
87 |
|
|
|
(100,209 |
) |
EBITDAre |
|
|
1,766,373 |
|
|
|
1,758,767 |
|
|
|
413,092 |
|
|
|
465,516 |
|
|
|
452,402 |
|
|
|
435,363 |
|
|
|
405,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Write-off of pursuit costs (other expenses) |
|
|
2,863 |
|
|
|
3,647 |
|
|
|
548 |
|
|
|
908 |
|
|
|
746 |
|
|
|
661 |
|
|
|
1,332 |
|
(Income) loss from investments in unconsolidated entities - operations |
|
|
5,694 |
|
|
|
5,378 |
|
|
|
1,698 |
|
|
|
1,531 |
|
|
|
1,242 |
|
|
|
1,223 |
|
|
|
1,382 |
|
Realized (gain) loss on investment securities (interest and other income) |
|
|
(1,591 |
) |
|
|
(1,504 |
) |
|
|
— |
|
|
|
7 |
|
|
|
(1,598 |
) |
|
|
— |
|
|
|
87 |
|
Unrealized (gain) loss on investment securities (interest and other income) |
|
|
(20,527 |
) |
|
|
(13,466 |
) |
|
|
(7,061 |
) |
|
|
(9,005 |
) |
|
|
(4,461 |
) |
|
|
— |
|
|
|
— |
|
Insurance/litigation settlement or reserve income (interest and other income) |
|
|
(360 |
) |
|
|
(1,055 |
) |
|
|
(105 |
) |
|
|
— |
|
|
|
(62 |
) |
|
|
(193 |
) |
|
|
(800 |
) |
Insurance/litigation/environmental settlement or reserve expense (other expenses) |
|
|
42,789 |
|
|
|
17,310 |
|
|
|
30,478 |
|
|
|
5,694 |
|
|
|
3,104 |
|
|
|
3,513 |
|
|
|
4,999 |
|
Advocacy contributions (other expenses) |
|
|
2,276 |
|
|
|
2,142 |
|
|
|
141 |
|
|
|
1,665 |
|
|
|
150 |
|
|
|
320 |
|
|
|
7 |
|
Data transformation project (other expenses) |
|
|
1,700 |
|
|
|
3,780 |
|
|
|
— |
|
|
|
— |
|
|
|
295 |
|
|
|
1,405 |
|
|
|
2,080 |
|
Other |
|
|
(518 |
) |
|
|
(589 |
) |
|
|
77 |
|
|
|
(602 |
) |
|
|
1 |
|
|
|
6 |
|
|
|
6 |
|
Normalized EBITDAre |
|
$ |
1,798,699 |
|
|
$ |
1,774,410 |
|
|
$ |
438,868 |
|
|
$ |
465,714 |
|
|
$ |
451,819 |
|
|
$ |
442,298 |
|
|
$ |
414,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balance Sheet Items: |
|
March 31, 2024 |
|
December 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total debt |
|
$ |
7,209,729 |
|
|
$ |
7,390,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents |
|
|
(44,535 |
) |
|
|
(50,743 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage principal reserves/sinking funds |
|
|
(31,203 |
) |
|
|
(29,270 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net debt |
|
$ |
7,133,991 |
|
|
$ |
7,310,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
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) |
|
|
Quarter Ended March 31, |
||||||||||
|
|
2024 |
|
2023 |
|
Variance |
||||||
|
|
|
|
|
|
|
|
|
|
|||
Impairment – non-operating real estate assets |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|||
Write-off of pursuit costs (other expenses) |
|
|
548 |
|
|
|
1,332 |
|
|
|
(784 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Premium on redemption of Preferred Shares |
|
|
1,444 |
|
|
|
— |
|
|
|
1,444 |
|
Debt extinguishment and preferred share redemption (gains) losses |
|
|
1,444 |
|
|
|
— |
|
|
|
1,444 |
|
|
|
|
|
|
|
|
|
|
|
|||
(Income) loss from investments in unconsolidated entities ─ non-operating assets |
|
|
955 |
|
|
|
627 |
|
|
|
328 |
|
Realized (gain) loss on investment securities (interest and other income) |
|
|
— |
|
|
|
87 |
|
|
|
(87 |
) |
Unrealized (gain) loss on investment securities (interest and other income) |
|
|
(7,061 |
) |
|
|
— |
|
|
|
(7,061 |
) |
Non-operating asset (gains) losses |
|
|
(6,106 |
) |
|
|
714 |
|
|
|
(6,820 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Insurance/litigation settlement or reserve income (interest and other income) |
|
|
(105 |
) |
|
|
(800 |
) |
|
|
695 |
|
Insurance/litigation/environmental settlement or reserve expense (other expenses) (1) |
|
|
30,478 |
|
|
|
4,999 |
|
|
|
25,479 |
|
Advocacy contributions (other expenses) |
|
|
141 |
|
|
|
7 |
|
|
|
134 |
|
Data transformation project (other expenses) |
|
|
— |
|
|
|
2,080 |
|
|
|
(2,080 |
) |
Other |
|
|
77 |
|
|
|
6 |
|
|
|
71 |
|
Other miscellaneous items |
|
|
30,591 |
|
|
|
6,292 |
|
|
|
24,299 |
|
|
|
|
|
|
|
|
|
|
|
|||
Adjustments from FFO to Normalized FFO |
|
$ |
26,477 |
|
|
$ |
8,338 |
|
|
$ |
18,139 |
|
(1) |
Insurance/litigation/environmental settlement or reserve expense includes adjustments to reserves relating to, among other things, litigation in California regarding the amount of 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.
|
|
Q2 2024 |
|
Full Year 2024 |
|
|
|
|
(no change from previous Full Year 2024) |
2024 Normalized FFO Guidance (per share diluted) |
|
|
|
|
|
|
|
|
|
Expected Normalized FFO Per Share |
|
$0.92 to $0.96 |
|
$3.80 to $3.90 |
|
|
|
|
|
2024 Same Store Assumptions (includes Residential and Non-Residential) |
|
|
|
|
|
|
|
|
|
Physical Occupancy |
|
|
|
95.9% |
Revenue change |
|
|
|
2.0% to 3.0% |
Expense change |
|
|
|
3.5% to 4.5% |
NOI change (1) |
|
|
|
1.0% to 2.6% |
|
|
|
|
|
2024 Transaction Assumptions |
|
|
|
|
|
|
|
|
|
Consolidated rental acquisitions |
|
|
|
$1.0B |
Consolidated rental dispositions |
|
|
|
$1.0B |
Transaction Accretion (Dilution) |
|
|
|
(25 basis points) |
|
|
|
|
|
2024 Debt Assumptions |
|
|
|
|
|
|
|
|
|
Weighted average debt outstanding |
|
|
|
$7.27B to $7.47B |
Interest expense, net (on a Normalized FFO basis) |
|
|
|
$268.0M to $274.0M |
Capitalized interest |
|
|
|
$9.7M to $13.7M |
|
|
|
|
|
2024 Capital Expenditures to Real Estate Assumptions for Same Store Properties (2) |
|
|
||
|
|
|
|
|
Capital Expenditures to Real Estate for Same Store Properties |
|
|
|
$295.0M |
Capital Expenditures to Real Estate per Same Store Apartment Unit |
|
|
$3,800 |
|
|
|
|
|
|
2024 Other Guidance Assumptions |
|
|
|
|
|
|
|
|
|
Property management expense |
|
|
|
$124.0M to $126.0M |
General and administrative expense |
|
|
|
$57.5M to $61.5M |
Debt offerings |
|
|
|
No amounts budgeted |
Weighted average Common Shares and Units - Diluted |
|
|
391.1M |
|
(1) |
Approximately 20 basis point change in NOI percentage = $0.01 per share change in EPS/FFO per sha |