Full Year Guidance Ranges Raised as Strong Recovery Continues Across Portfolio
Equity Residential (NYSE: EQR) today reported results for the quarter and nine months ended September 30, 2021 and has posted a Q3 2021 Management Presentation to its website as referenced below.
Third Quarter 2021 Results
All per share results are reported as available to common shares/units on a diluted basis.
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Quarter Ended September 30, |
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2021 |
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2020 |
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$ Change |
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% Change |
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Earnings Per Share (EPS) |
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$ |
1.15 |
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$ |
0.24 |
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$ |
0.91 |
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379.2 |
% |
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Funds from Operations (FFO) per share |
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$ |
0.76 |
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$ |
0.76 |
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$ |
— |
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–– |
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Normalized FFO per share |
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$ |
0.77 |
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$ |
0.77 |
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$ |
— |
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–– |
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Nine Months Ended September 30, |
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2021 |
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2020 |
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$ Change |
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% Change |
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Earnings Per Share (EPS) |
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$ |
2.14 |
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$ |
1.77 |
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$ |
0.37 |
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20.9 |
% |
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Funds from Operations (FFO) per share |
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$ |
2.21 |
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$ |
2.48 |
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$ |
(0.27 |
) |
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(10.9 |
%) |
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Normalized FFO per share |
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$ |
2.17 |
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$ |
2.49 |
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$ |
(0.32 |
) |
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(12.9 |
%) |
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“Our third quarter results and upward guidance revisions reflect the continued rapid recovery in our business. For the first time since the pandemic began, we achieved positive quarter over quarter total same store revenue growth,” said Mark J. Parrell, Equity Residential’s President and CEO. “With continued strong demand and growing incomes for our resident demographic, we believe that we are well positioned to deliver same store revenue results in 2022 that will be among the best in our Company’s history.”
Highlights
- The Company reported positive total same store revenue growth for the third quarter of 2021 compared to the same period of 2020 driven by strong Physical Occupancy, continued improvement in pricing power, an increase in Non-Residential revenues and the governmental rental assistance described below. This is the first time the Company has reported positive quarter over quarter revenue growth since the beginning of the pandemic. The Company also raised its annual guidance for same store revenues and NOI, as well as EPS, FFO per share and Normalized FFO per share.
- Similar to prior quarters, the Company collected approximately 97% of its expected Residential revenues in the third quarter of 2021. Additionally, the Company received governmental rental assistance payments paid on behalf of residents of approximately $13.4 million and $18.3 million during the third quarter of 2021 and nine months ended September 30, 2021, respectively.
- During the third quarter of 2021, the Company acquired eight operating properties, consisting of 2,108 apartment units, for an aggregate purchase price of approximately $740.2 million and a weighted average Acquisition Cap Rate of 3.9%. The acquisitions include properties in Austin and Dallas/Ft. Worth, TX, marking the Company’s re-entry into these markets, as well as Atlanta, GA, a market that the Company reentered earlier this year.
- During the third quarter of 2021, the Company sold five California operating properties, consisting of 1,047 apartment units, for an aggregate sales price of approximately $612.3 million and a weighted average Disposition Yield of 3.9%.
- In August 2021, the Company entered into a strategic partnership with Toll Brothers, Inc. (NYSE: TOL) to develop apartment communities in key Equity Residential markets.
- The Company recently published its 2021 Environmental, Social and Governance (ESG) report highlighting Equity Residential’s ESG goals and accomplishments.
Results Per Share
The change in EPS for the quarter ended September 30, 2021 compared to the same period of 2020 is due primarily to higher property sale gains in the third quarter of 2021, the various adjustment items listed on page 26 of this release and the items described below. The change in EPS for the nine months ended September 30, 2021 compared to the same period of 2020 is due primarily to higher property sale gains in the first nine months of 2021, the various adjustment items listed on page 26 of this release and the items described below.
The per share change in FFO for both the quarter and nine months ended September 30, 2021 compared to the same periods of 2020 is due primarily to the various adjustment items listed on page 26 of this release and the items described below.
The per share change in Normalized FFO is due primarily to:
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Positive/(Negative) Impact |
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Third Quarter 2021 vs.
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September YTD 2021 vs.
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Residential same store Net Operating Income (NOI) |
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$ |
(0.05 |
) |
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$ |
(0.39 |
) |
Non-Residential same store NOI |
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0.04 |
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0.05 |
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2021 and 2020 transaction activity impact on NOI, net |
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(0.01 |
) |
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(0.06 |
) |
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Interest expense, net |
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0.03 |
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0.12 |
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Other items, including corporate overhead (1) |
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(0.01 |
) |
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(0.04 |
) |
Net |
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$ |
— |
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$ |
(0.32 |
) |
(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 28 through 33 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 7, 30 and 31 of this release.
Same Store Results
The Company has provided a breakout of Residential and Non-Residential same store results on page 11 of this release with definitions that can be found on page 32 of this release. Non-Residential operations account for approximately 3.8% of total revenues for the nine months ended September 30, 2021. The table below reflects same store Residential only results.
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Third Quarter 2021 vs.
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Third Quarter 2021 vs.
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September YTD 2021 vs.
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Apartment Units |
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75,509 |
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75,884 |
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75,288 |
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Physical Occupancy |
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96.6% vs. 94.7% |
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96.6% vs. 96.1% |
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95.9% vs. 95.3% |
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Revenues |
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(2.5%) |
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3.5% |
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(7.3%) |
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Expenses |
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2.1% |
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4.0% |
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3.1% |
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NOI |
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(4.8%) |
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3.3% |
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(12.1%) |
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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. See page 12 for detail and reconciliations of Same Store Residential Revenues on a GAAP basis to Same Store Residential Revenues with Leasing Concessions on a cash basis.
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Third Quarter 2021 vs.
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Third Quarter 2021 vs.
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September YTD 2021 vs.
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% Change |
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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 (1) |
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(4.9 |
%) |
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1.2 |
% |
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(6.4 |
%) |
Leasing Concessions |
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(1.1 |
%) |
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0.4 |
% |
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(1.5 |
%) |
Vacancy gain (loss) |
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2.2 |
% |
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0.2 |
% |
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0.9 |
% |
Bad Debt, Net (2) |
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1.9 |
% |
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1.4 |
% |
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(0.1 |
%) |
Other (3) |
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(0.6 |
%) |
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0.3 |
% |
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(0.2 |
%) |
Same Store Residential Revenues- |
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current period |
(2.5 |
%) |
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3.5 |
% |
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(7.3 |
%) |
(1) |
The decline in lease rates is driven by the cumulative impact of leasing activity over the past twelve months despite meaningful recent improvements. |
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(2) |
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. |
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(3) |
Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items. |
Residential Same Store Operating Statistics
The following table includes select operating metrics for Residential Same Store Properties:
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Q2 2021 |
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Q3 2021 |
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October 2021 (1) |
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Physical Occupancy (2) |
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96.3% |
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96.7% |
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96.9% |
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Percentage of Residents Renewing by quarter/month |
53.4% |
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58.5% |
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64.0% |
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New Lease Change |
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(5.4%) |
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10.1% |
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11.1% |
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Renewal Rate Achieved |
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0.2% |
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5.6% |
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9.0% |
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Blended Rate |
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(2.8%) |
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7.6% |
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9.8% |
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(1) |
October 2021 results are preliminary. |
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(2) |
Physical Occupancy is as of month-end June for Q2 2021, month-end September for Q3 2021 and as of October 21st for October 2021. |
Investment Activity
“During the quarter, we were pleased to add high quality, well located assets to the portfolio in both our expansion markets and the suburbs of our established markets and to fund these acquisitions with the sales proceeds from older California assets. These acquisitions included re-entering both the Dallas/Ft. Worth and Austin markets,” said Mr. Parrell. “We also had a very active quarter on the development front with the announcement of our new strategic partnership with Toll Brothers to build apartment communities in several of our markets. In addition, we continue to harness our internal development capabilities to deliver high quality assets to the portfolio as we did in the third quarter with the completion of one project and the start of three new projects.”
The Company acquired eight properties, consisting of 2,108 apartment units, during the third quarter of 2021 for an aggregate purchase price of approximately $740.2 million and a weighted average Acquisition Capitalization Rate of 3.9%. The properties are located in Austin, TX (2), Dallas/Ft. Worth, TX (2), Atlanta, GA (2), suburban Seattle, WA and suburban Boston, MA. During the first nine months of 2021, the Company has acquired 11 properties, consisting of 2,921 apartment units, for an aggregate purchase price of approximately $1.02 billion and a weighted average Acquisition Capitalization Rate of 3.9%.
The Company sold five properties during the third quarter of 2021, consisting of 1,047 apartment units, for an aggregate sale price of approximately $612.3 million and a weighted average Disposition Yield of 3.9%, generating an Unlevered IRR of 9.5%. Three of the properties are located in suburban San Francisco, CA and two in Los Angeles, CA. During the first nine months of 2021, the Company sold ten properties, consisting of 1,842 apartment units, for an aggregate sale price of approximately $1.02 billion and a weighted average Disposition Yield of 3.8%, generating an Unlevered IRR of 9.2%.
In August 2021, the Company announced a strategic partnership with Toll Brothers, Inc. to develop apartment communities in key Equity Residential markets. The Company expects that the first developments under this partnership will commence construction sometime over the next few months. In addition to this partnership, during the third quarter of 2021, the Company acquired a land parcel located in Denver, CO and another in suburban New York, NY, in unconsolidated joint ventures for an aggregate gross purchase price of approximately $55.4 million and commenced construction on both projects. The Company’s total investment in these two separate joint ventures is approximately $24.9 million as of September 30, 2021. The Company also commenced construction on an additional joint venture apartment property in Washington, D.C., and completed the development of The Edge, a 154 apartment unit property in Bethesda, MD.
Capital Markets Activity
On August 9, 2021, the Company closed on its second ever green bond offering with the issuance of $500.0 million at its lowest ever coupon rate for 10-year unsecured notes of 1.85% and an all-in effective yield of 2.0%. Net proceeds from this issuance will be allocated to investments in green buildings and/or renewable energy, energy efficiency and sustainable water management projects.
During the third quarter of 2021, the Company entered into forward equity sales agreements under its At-The-Market (ATM) share offering program for approximately 1.7 million common shares at an initial weighted average forward price per share of $83.25, which is subject to certain adjustments at settlement. The common shares sold under the forward equity sales agreements must settle by the end of the first quarter in 2023.
Fourth Quarter 2021 Guidance
The Company has established guidance ranges for the fourth quarter of 2021 EPS, FFO per share and Normalized FFO per share as listed below:
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Q4 2021
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EPS |
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$1.02 to $1.04 |
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FFO per share |
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$0.77 to $0.79 |
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Normalized FFO per share |
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$0.78 to $0.80 |
The difference between the third quarter 2021 actual EPS of $1.15 and the fourth quarter of 2021 EPS guidance midpoint of $1.03 is due primarily to lower expected property sale gains, partially offset by higher expected same store NOI.
The difference between the third quarter 2021 actual FFO of $0.76 per share and the fourth quarter of 2021 FFO guidance midpoint of $0.78 per share is due primarily to higher expected same store NOI.
The difference between the third quarter 2021 actual Normalized FFO of $0.77 per share and the fourth quarter of 2021 Normalized FFO guidance midpoint of $0.79 per share is due primarily to higher expected same store NOI.
Full Year 2021 Guidance
The Company has revised its guidance for its full year 2021 same store operating performance as well as EPS, FFO per share and Normalized FFO per share as listed below:
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Revised |
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Previous |
Same Store (includes Residential and Non-Residential): |
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Physical Occupancy |
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96.0% |
|
95.3% to 96.3% |
Revenue change |
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(3.7%) |
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(5.0%) to (4.0%) |
Expense change |
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3.25% |
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2.75% to 3.25% |
NOI change |
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(7.0%) |
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(8.5%) to (7.5%) |
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EPS |
|
$3.16 to $3.18 |
|
$3.03 to $3.13 |
FFO per share |
|
$2.98 to $3.00 |
|
$2.89 to $2.99 |
Normalized FFO per share |
|
$2.95 to $2.97 |
|
$2.85 to $2.95 |
The change in the full year 2021 EPS guidance range is due primarily to higher expected property sale gains and same store NOI, partially offset by higher expected depreciation expense.
The change in the full year 2021 FFO per share guidance range is due primarily to higher expected same store NOI.
The change in the full year 2021 Normalized FFO per share guidance range 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 high quality long-term renters. As of October 25, 2021, Equity Residential owns or has investments in 307 properties consisting of 79,322 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, competition and 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, the rollout and effectiveness of vaccines 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, October 27, 2021 at 12:00 p.m. CT. In connection with the conference call, the Company is also providing a Management Presentation on its website. Please visit the Investor section of the Company’s website at www.equityapartments.com for the web cast link and the presentation.
Equity Residential Consolidated Statements of Operations (Amounts in thousands except per share data) (Unaudited) |
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Nine Months Ended September 30, |
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Quarter Ended September 30, |
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2021 |
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2020 |
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2021 |
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2020 |
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REVENUES |
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Rental income |
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$ |
1,818,867 |
|
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$ |
1,958,270 |
|
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$ |
623,206 |
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$ |
622,433 |
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EXPENSES |
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|
Property and maintenance |
|
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341,261 |
|
|
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333,333 |
|
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116,461 |
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|
113,065 |
|
Real estate taxes and insurance |
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297,780 |
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|
288,043 |
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96,909 |
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|
95,273 |
|
Property management |
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74,357 |
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71,513 |
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|
23,772 |
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20,196 |
|
General and administrative |
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43,102 |
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37,212 |
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13,041 |
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|
10,859 |
|
Depreciation |
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|
616,032 |
|
|
|
619,003 |
|
|
|
215,397 |
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|
200,605 |
|
Total expenses |
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1,372,532 |
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|
1,349,104 |
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465,580 |
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|
439,998 |
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Net gain (loss) on sales of real estate properties |
|
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587,623 |
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|
352,218 |
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|
363,928 |
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(25 |
) |
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Operating income |
|
|
1,033,958 |
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|
961,384 |
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|
|
521,554 |
|
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|
182,410 |
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|
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|
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|
|
Interest and other income |
|
|
25,293 |
|
|
|
4,006 |
|
|
|
973 |
|
|
|
535 |
|
Other expenses |
|
|
(10,908 |
) |
|
|
(8,324 |
) |
|
|
(3,456 |
) |
|
|
(4,097 |
) |
Interest: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense incurred, net |
|
|
(202,733 |
) |
|
|
(248,349 |
) |
|
|
(68,251 |
) |
|
|
(80,874 |
) |
Amortization of deferred financing costs |
|
|
(6,172 |
) |
|
|
(6,253 |
) |
|
|
(2,048 |
) |
|
|
(2,101 |
) |
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 |
|
|
839,438 |
|
|
|
702,464 |
|
|
|
448,772 |
|
|
|
95,873 |
|
Income and other tax (expense) benefit |
|
|
(679 |
) |
|
|
(502 |
) |
|
|
(284 |
) |
|
|
(262 |
) |
Income (loss) from investments in unconsolidated entities |
|
|
(3,028 |
) |
|
|
(2,445 |
) |
|
|
(1,156 |
) |
|
|
(246 |
) |
Net gain (loss) on sales of land parcels |
|
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net income |
|
|
835,736 |
|
|
|
699,517 |
|
|
|
447,332 |
|
|
|
95,365 |
|
Net (income) loss attributable to Noncontrolling Interests: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Partnership |
|
|
(27,903 |
) |
|
|
(24,624 |
) |
|
|
(14,847 |
) |
|
|
(3,376 |
) |
Partially Owned Properties |
|
|
(1,957 |
) |
|
|
(14,113 |
) |
|
|
(534 |
) |
|
|
(703 |
) |
Net income attributable to controlling interests |
|
|
805,876 |
|
|
|
660,780 |
|
|
|
431,951 |
|
|
|
91,286 |
|
Preferred distributions |
|
|
(2,318 |
) |
|
|
(2,318 |
) |
|
|
(773 |
) |
|
|
(773 |
) |
Net income available to Common Shares |
|
$ |
803,558 |
|
|
$ |
658,462 |
|
|
$ |
431,178 |
|
|
$ |
90,513 |
|
|
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|
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|
|
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|
|
Earnings per share – basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Common Shares |
|
$ |
2.15 |
|
|
$ |
1.77 |
|
|
$ |
1.15 |
|
|
$ |
0.24 |
|
Weighted average Common Shares outstanding |
|
|
373,474 |
|
|
|
371,749 |
|
|
|
374,308 |
|
|
|
371,869 |
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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|
|
Earnings per share – diluted: |
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|
|
|
|
|
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|
|
|
|
|
|
Net income available to Common Shares |
|
$ |
2.14 |
|
|
$ |
1.77 |
|
|
$ |
1.15 |
|
|
$ |
0.24 |
|
Weighted average Common Shares outstanding |
|
|
387,642 |
|
|
|
385,973 |
|
|
|
388,374 |
|
|
|
385,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions declared per Common Share outstanding |
|
$ |
1.8075 |
|
|
$ |
1.8075 |
|
|
$ |
0.6025 |
|
|
$ |
0.6025 |
|
Equity Residential Consolidated Statements of Funds From Operations and Normalized Funds From Operations (Amounts in thousands except per share data) (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
Nine Months Ended September 30, |
|
|
Quarter Ended September 30, |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
Net income |
|
$ |
835,736 |
|
|
$ |
699,517 |
|
|
$ |
447,332 |
|
|
$ |
95,365 |
|
Net (income) loss attributable to Noncontrolling Interests – Partially |
||||||||||||||||
Owned Properties |
|
|
(1,957 |
) |
|
|
(14,113 |
) |
|
|
(534 |
) |
|
|
(703 |
) |
Preferred distributions |
|
|
(2,318 |
) |
|
|
(2,318 |
) |
|
|
(773 |
) |
|
|
(773 |
) |
Net income available to Common Shares and Units |
|
|
831,461 |
|
|
|
683,086 |
|
|
|
446,025 |
|
|
|
93,889 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
616,032 |
|
|
|
619,003 |
|
|
|
215,397 |
|
|
|
200,605 |
|
Depreciation – Non-real estate additions |
|
|
(3,228 |
) |
|
|
(3,433 |
) |
|
|
(1,052 |
) |
|
|
(1,126 |
) |
Depreciation – Partially Owned Properties |
|
|
(2,676 |
) |
|
|
(2,514 |
) |
|
|
(994 |
) |
|
|
(828 |
) |
Depreciation – Unconsolidated Properties |
|
|
1,867 |
|
|
|
1,838 |
|
|
|
634 |
|
|
|
614 |
|
Net (gain) loss on sales of unconsolidated entities - operating |
||||||||||||||||
assets |
|
|
(4 |
) |
|
|
(1,000 |
) |
|
|
— |
|
|
|
(1,000 |
) |
Net (gain) loss on sales of real estate properties |
|
|
(587,623 |
) |
|
|
(352,218 |
) |
|
|
(363,928 |
) |
|
|
25 |
|
Noncontrolling Interests share of gain (loss) on sales |
||||||||||||||||
of real estate properties |
|
|
— |
|
|
|
11,655 |
|
|
|
— |
|
|
|
— |
|
FFO available to Common Shares and Units |
|
|
855,829 |
|
|
|
956,417 |
|
|
|
296,082 |
|
|
|
292,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments (see note for additional detail): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment – non-operating assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Write-off of pursuit costs |
|
|
3,557 |
|
|
|
4,864 |
|
|
|
910 |
|
|
|
1,586 |
|
Debt extinguishment and preferred share redemption (gains) |
||||||||||||||||
losses |
|
|
264 |
|
|
|
37 |
|
|
|
— |
|
|
|
5 |
|
Non-operating asset (gains) losses |
|
|
(23,014 |
) |
|
|
1,022 |
|
|
|
294 |
|
|
|
352 |
|
Other miscellaneous items |
|
|
4,520 |
|
|
|
(514 |
) |
|
|
1,179 |
|
|
|
1,796 |
|
Normalized FFO available to Common Shares and Units |
|
$ |
841,156 |
|
|
$ |
961,826 |
|
|
$ |
298,465 |
|
|
$ |
295,918 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO |
|
$ |
858,147 |
|
|
$ |
958,735 |
|
|
$ |
296,855 |
|
|
$ |
292,952 |
|
Preferred distributions |
|
|
(2,318 |
) |
|
|
(2,318 |
) |
|
|
(773 |
) |
|
|
(773 |
) |
FFO available to Common Shares and Units |
|
$ |
855,829 |
|
|
$ |
956,417 |
|
|
$ |
296,082 |
|
|
$ |
292,179 |
|
FFO per share and Unit – basic |
|
$ |
2.22 |
|
|
$ |
2.49 |
|
|
$ |
0.77 |
|
|
$ |
0.76 |
|
FFO per share and Unit – diluted |
|
$ |
2.21 |
|
|
$ |
2.48 |
|
|
$ |
0.76 |
|
|
$ |
0.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized FFO |
|
$ |
843,474 |
|
|
$ |
964,144 |
|
|
$ |
299,238 |
|
|
$ |
296,691 |
|
Preferred distributions |
|
|
(2,318 |
) |
|
|
(2,318 |
) |
|
|
(773 |
) |
|
|
(773 |
) |
Normalized FFO available to Common Shares and Units |
|
$ |
841,156 |
|
|
$ |
961,826 |
|
|
$ |
298,465 |
|
|
$ |
295,918 |
|
Normalized FFO per share and Unit – basic |
|
$ |
2.18 |
|
|
$ |
2.50 |
|
|
$ |
0.77 |
|
|
$ |
0.77 |
|
Normalized FFO per share and Unit – diluted |
|
$ |
2.17 |
|
|
$ |
2.49 |
|
|
$ |
0.77 |
|
|
$ |
0.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average Common Shares and Units outstanding – basic |
|
|
385,841 |
|
|
|
384,759 |
|
|
|
386,327 |
|
|
|
384,871 |
|
Weighted average Common Shares and Units outstanding – diluted |
|
|
387,642 |
|
|
|
385,973 |
|
|
|
388,374 |
|
|
|
385,652 |
|
Note: See Adjustments from FFO to Normalized FFO for additional detail regarding the adjustments from FFO to Normalized FFO. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share. |
Equity Residential Consolidated Balance Sheets (Amounts in thousands except for share amounts) (Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
September 30, |
|
|
December 31, |
|
||
|
|
2021 |
|
|
2020 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Land |
|
$ |
5,779,686 |
|
|
$ |
5,785,367 |
|
Depreciable property |
|
|
21,840,344 |
|
|
|
20,920,654 |
|
Projects under development |
|
|
163,659 |
|
|
|
411,134 |
|
Land held for development |
|
|
82,026 |
|
|
|
86,170 |
|
Investment in real estate |
|
|
27,865,715 |
|
|
|
27,203,325 |
|
Accumulated depreciation |
|
|
(8,260,846 |
) |
|
|
(7,859,657 |
) |
Investment in real estate, net |
|
|
19,604,869 |
|
|
|
19,343,668 |
|
Investments in unconsolidated entities |
|
|
79,429 |
|
|
|
52,782 |
|
Cash and cash equivalents |
|
|
39,707 |
|
|
|
42,591 |
|
Restricted deposits |
|
|
187,042 |
|
|
|
57,137 |
|
Right-of-use assets |
|
|
477,693 |
|
|
|
499,287 |
|
Other assets |
|
|
274,275 |
|
|
|
291,426 |
|
Total assets |
|
$ |
20,663,015 |
|
|
$ |
20,286,891 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Mortgage notes payable, net |
|
$ |
2,281,165 |
|
|
$ |
2,293,890 |
|
Notes, net |
|
|
5,833,483 |
|
|
|
5,335,536 |
|
Line of credit and commercial paper |
|
|
30,000 |
|
|
|
414,830 |
|
Accounts payable and accrued expenses |
|
|
166,522 |
|
|
|
107,366 |
|
Accrued interest payable |
|
|
56,777 |
|
|
|
65,896 |
|
Lease liabilities |
|
|
313,361 |
|
|
|
329,130 |
|
Other liabilities |
|
|
350,201 |
|
|
|
345,064 |
|
Security deposits |
|
|
64,617 |
|
|
|
60,480 |
|
Distributions payable |
|
|
233,306 |
|
|
|
232,262 |
|
Total liabilities |
|
|
9,329,432 |
|
|
|
9,184,454 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable Noncontrolling Interests – Operating Partnership |
|
|
459,933 |
|
|
|
338,951 |
|
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 September 30, 2021 and December 31, 2020 |
|
|
37,280 |
|
|
|
37,280 |
|
Common Shares of beneficial interest, $0.01 par value; |
||||||||
1,000,000,000 shares authorized; 375,002,588 shares issued |
||||||||
and outstanding as of September 30, 2021 and 372,302,000 |
||||||||
shares issued and outstanding as of December 31, 2020 |
|
|
3,750 |
|
|
|
3,723 |
|
Paid in capital |
|
|
9,131,078 |
|
|
|
9,128,599 |
|
Retained earnings |
|
|
1,527,115 |
|
|
|
1,399,715 |
|
Accumulated other comprehensive income (loss) |
|
|
(36,666 |
) |
|
|
(43,666 |
) |
Total shareholders’ equity |
|
|
10,662,557 |
|
|
|
10,525,651 |
|
Noncontrolling Interests: |
|
|
|
|
|
|
|
|
Operating Partnership |
|
|
208,955 |
|
|
|
233,162 |
|
Partially Owned Properties |
|
|
2,138 |
|
|
|
4,673 |
|
Total Noncontrolling Interests |
|
|
211,093 |
|
|
|
237,835 |
|
Total equity |
|
|
10,873,650 |
|
|
|
10,763,486 |
|
Total liabilities and equity |
|
$ |
20,663,015 |
|
|
$ |
20,286,891 |
|
Equity Residential Portfolio Summary As of September 30, 2021 |
|
|
|
|
|
|
|
|
|
|
% of
|
|
|
Average |
|
||
|
|
|
|
|
|
Apartment |
|
|
Budgeted |
|
|
Rental |
|
|||
Markets/Metro Areas |
|
Properties |
|
|
Units |
|
|
NOI |
|
|
Rate |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Established Markets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles |
|
|
67 |
|
|
|
15,739 |
|
|
|
20.0 |
% |
|
$ |
2,526 |
|
Orange County |
|
|
13 |
|
|
|
4,028 |
|
|
|
5.4 |
% |
|
|
2,383 |
|
San Diego |
|
|
11 |
|
|
|
2,706 |
|
|
|
3.8 |
% |
|
|
2,554 |
|
Subtotal – Southern California |
|
|
91 |
|
|
|
22,473 |
|
|
|
29.2 |
% |
|
|
2,504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Washington DC |
|
|
49 |
|
|
|
15,098 |
|
|
|
17.6 |
% |
|
|
2,345 |
|
San Francisco |
|
|
46 |
|
|
|
12,314 |
|
|
|
17.6 |
% |
|
|
2,908 |
|
Seattle |
|
|
46 |
|
|
|
9,525 |
|
|
|
11.5 |
% |
|
|
2,253 |
|
New York |
|
|
36 |
|
|
|
9,343 |
|
|
|
11.0 |
% |
|
|
3,482 |
|
Boston |
|
|
26 |
|
|
|
6,700 |
|
|
|
9.8 |
% |
|
|
2,867 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expansion Markets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denver |
|
|
6 |
|
|
|
1,904 |
|
|
|
1.9 |
% |
|
|
2,077 |
|
Atlanta |
|
|
3 |
|
|
|
985 |
|
|
|
0.9 |
% |
|
|
1,979 |
|
Dallas/Ft. Worth |
|
|
2 |
|
|
|
489 |
|
|
|
0.3 |
% |
|
|
1,931 |
|
Austin |
|
|
2 |
|
|
|
491 |
|
|
|
0.2 |
% |
|
|
1,406 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
307 |
|
|
|
79,322 |
|
|
|
100.0 |
% |
|
$ |
2,625 |
|
|
|
Properties |
|
|
Apartment Units |
|
|
|
|
|
|
|
|
Wholly Owned Properties |
|
290 |
|
|
75,548 |
|
Master-Leased Properties – Consolidated (1) |
|
— |
|
|
— |
|
Partially Owned Properties – Consolidated |
|
17 |
|
|
3,774 |
|
|
|
|
|
|
|
|
|
|
307 |
|
|
79,322 |
|
Note: Projects under development are not included in the Portfolio Summary until construction has been completed. |
(1) |
Effective July 31, 2021, the Company took over management of its last remaining third-party master-leased property containing 162 apartment units located in Arlington, VA and the property is now included in the Wholly Owned Properties count. |
Equity Residential |
Portfolio Rollforward Q3 2021 ($ in thousands) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
Properties |
|
|
Apartment
|
|
|
Purchase
|
|
|
Acquisition
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6/30/2021 |
|
|
303 |
|
|
|
78,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Rental Properties |
|
|
|
|
6 |
|
|
|
1,595 |
|
|
$ |
499,725 |
|
|
|
3.9 |
% |
Consolidated Rental Properties – Not Stabilized (A) |
|
|
2 |
|
|
|
513 |
|
|
$ |
240,500 |
|
|
|
4.1 |
% |
||
Unconsolidated Land Parcels (B) |
|
|
|
|
— |
|
|
|
— |
|
|
$ |
55,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Price |
|
|
Disposition
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dispositions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Rental Properties |
|
|
|
|
(5 |
) |
|
|
(1,047 |
) |
|
$ |
(612,300 |
) |
|
|
(3.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completed Developments – Consolidated |
|
|
|
|
1 |
|
|
|
154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9/30/2021 |
|
|
307 |
|
|
|
79,322 |
|
|
|
|
|
|
|
|
|
Portfolio Rollforward 2021 ($ in thousands) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
Properties |
|
|
Apartment
|
|
|
Purchase
|
|
|
Acquisition
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2020 |
|
|
304 |
|
|
|
77,889 |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Rental Properties |
|
|
|
|
8 |
|
|
|
2,128 |
|
|
$ |
684,725 |
|
|
|
3.9 |
% |
Consolidated Rental Properties – Not Stabilized (A) |
|
|
3 |
|
|
|
793 |
|
|
$ |
335,700 |
|
|
|
4.1 |
% |
||
Unconsolidated Land Parcels (B) |
|
|
|
|
— |
|
|
|
— |
|
|
$ |
55,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Price |
|
|
Disposition
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dispositions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Rental Properties |
|
|
|
|
(10 |
) |
|
|
(1,842 |
) |
|
$ |
(1,021,800 |
) |
|
|
(3.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completed Developments – Consolidated |
|
|
|
|
2 |
|
|
|
354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9/30/2021 |
|
|
307 |
|
|
|
79,322 |
|
|
|
|
|
|
|
|
|
(A) |
The Company acquired three properties during the nine months ended September 30, 2021, including a property in each of the Atlanta and Seattle markets in the third quarter of 2021, that are in lease-up and are expected to stabilize in their second year of ownership at the combined Acquisition Cap Rates listed above. |
|
(B) |
The Company entered into separate unconsolidated joint ventures for the purpose of developing vacant land parcels in Denver, CO and suburban New York, NY. The purchase price listed represents the total consideration for the closing of the respective joint ventures. The Company’s total investment in these two joint ventures is approximately $24.9 million as of September 30, 2021. See Development and Lease-Up Projects for additional detail. |
Equity Residential |
Third Quarter 2021 vs. Third Quarter 2020 Same Store Results/Statistics Including 75,509 Same Store Apartment Units $ in thousands (except for Average Rental Rate) |
|||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Third Quarter 2021 |
|
|
Third Quarter 2020 |
|
|||||||||||||||||||||||||||||||
|
|
Residential |
|
|
% Change |
|
|
Non-
|
|
|
% Change |
|
|
Total |
|
|
% Change |
|
|
|
|
Residential |
|
|
Non-
|
|
|
Total |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
579,336 |
|
(1) |
(2.5%) |
|
|
$ |
22,516 |
|
(2) |
268.3% |
|
|
$ |
601,852 |
|
|
0.3% |
|
|
Revenues |
|
$ |
594,138 |
|
|
$ |
6,114 |
|
|
$ |
600,252 |
|
Expenses |
|
$ |
200,652 |
|
|
2.1% |
|
|
$ |
5,931 |
|
|
5.0% |
|
|
$ |
206,583 |
|
|
2.2% |
|
|
Expenses |
|
$ |
196,514 |
|
|
$ |
5,650 |
|
|
$ |
202,164 |
|
NOI |
|
$ |
378,684 |
|
|
(4.8%) |
|
|
$ |
16,585 |
|
|
3,474.4% |
|
|
$ |
395,269 |
|
|
(0.7%) |
|
|
NOI |
|
$ |
397,624 |
|
|
$ |
464 |
|
|
$ |
398,088 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
|
$ |
2,649 |
|
|
(4.4%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
$ |
2,770 |
|
|
|
|
|
|
|
|
|
|
Physical Occupancy |
|
96.6 |
% |
|
1.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical Occupancy |
|
94.7 |
% |
|
|
|
|
|
|
|
|
||
Turnover |
|
13.7 |
% |
|
(4.2%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover |
|
17.9 |
% |
|
|
|
|
|
|
|
|
Third Quarter 2021 vs. Second Quarter 2021 Same Store Results/Statistics Including 75,884 Same Store Apartment Units $ in thousands (except for Average Rental Rate) |
|||||||||||||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||||||
Third Quarter 2021 |
|
|
Second Quarter 2021 |
|
|||||||||||||||||||||||||||||||
|
|
Residential |
|
|
% Change |
|
|
Non-
|
|
|
% Change |
|
|
Total |
|
|
% Change |
|
|
|
|
Residential |
|
|
Non-
|
|
|
Total |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
581,352 |
|
(1) |
3.5% |
|
|
$ |
22,548 |
|
(2) |
6.8% |
|
|
$ |
603,900 |
|
|
3.7% |
|
|
Revenues |
|
$ |
561,446 |
|
|
$ |
21,122 |
|
|
$ |
582,568 |
|
Expenses |
|
$ |
201,243 |
|
|
4.0% |
|
|
$ |
5,932 |
|
|
(2.3%) |
|
|
$ |
207,175 |
|
|
3.8% |
|
|
Expenses |
|
$ |
193,565 |
|
|
$ |
6,071 |
|
|
$ |
199,636 |
|
NOI |
|
$ |
380,109 |
|
|
3.3% |
|
|
$ |
16,616 |
|
|
10.4% |
|
|
$ |
396,725 |
|
|
3.6% |
|
|
NOI |
|
$ |
367,881 |
|
|
$ |
15,051 |
|
|
$ |
382,932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
|
$ |
2,645 |
|
|
3.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
$ |
2,568 |
|
|
|
|
|
|
|
|
|
|
Physical Occupancy |
|
96.6 |
% |
|
0.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical Occupancy |
|
96.1 |
% |
|
|
|
|
|
|
|
|
||
Turnover |
|
13.7 |
% |
|
2.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover |
|
11.4 |
% |
|
|
|
|
|
|
|
|
September YTD 2021 vs. September YTD 2020
Same Store Results/Statistics Including 75,288 Same Store Apartment Units $ in thousands (except for Average Rental Rate) |
|||||||||||||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||||||
September YTD 2021 |
|
|
September YTD 2020 |
|
|||||||||||||||||||||||||||||||
|
|
Residential |
|
|
% Change |
|
|
Non-
|
|
|
% Change |
|
|
Total |
|
|
% Change |
|
|
|
|
Residential |
|
|
Non-
|
|
|
Total |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
1,692,955 |
|
(1) |
(7.3%) |
|
|
$ |
65,221 |
|
(2) |
48.7% |
|
|
$ |
1,758,176 |
|
|
(6.0%) |
|
|
Revenues |
|
$ |
1,826,344 |
|
|
$ |
43,855 |
|
|
$ |
1,870,199 |
|
Expenses |
|
$ |
594,688 |
|
|
3.1% |
|
|
$ |
18,017 |
|
|
8.4% |
|
|
$ |
612,705 |
|
|
3.2% |
|
|
Expenses |
|
$ |
576,884 |
|
|
$ |
16,618 |
|
|
$ |
593,502 |
|
NOI |
|
$ |
1,098,267 |
|
|
(12.1%) |
|
|
$ |
47,204 |
|
|
73.3% |
|
|
$ |
1,145,471 |
|
|
(10.3%) |
|
|
NOI |
|
$ |
1,249,460 |
|
|
$ |
27,237 |
|
|
$ |
1,276,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
$ |
2,607 |
|
|
(7.8%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
$ |
2,829 |
|
|
|
|
|
|
|
|
|
||
Physical Occupancy |
|
95.9 |
% |
|
0.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical Occupancy |
|
95.3 |
% |
|
|
|
|
|
|
|
|
||
Turnover |
|
35.0 |
% |
|
(4.4%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover |
|
39.4 |
% |
|
|
|
|
|
|
|
|
(1) |
See page 12 for Same Store Residential Revenues with Leasing Concessions reflected on a cash basis. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail. |
|
|
||
(2) |
Changes in same store Non-Residential revenues for the periods presented are driven by the following: |
|
|
Equity Residential |
Same Store Residential Revenues – GAAP to Cash Basis (1) $ in thousands |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Third Quarter 2021 vs. Third Quarter 2020 |
|
|
Third Quarter 2021 vs. Second Quarter 2021 |
|
|
Sept. YTD 2021 vs. Sept. YTD 2020 |
|
||||||||||||||||
|
75,509 Same Store Apartment Units |
|
|
75,884 Same Store Apartment Units |
|
|
75,288 Same Store Apartment Units |
|
||||||||||||||||
|
Q3 2021 |
|
|
Q3 2020 |
|
|
Q3 2021 |
|
|
Q2 2021 |
|
|
Sept. YTD 2021 |
|
|
Sept. YTD 2020 |
|
|||||||
Same Store Residential Revenues (GAAP Basis) |
$ |
579,336 |
|
|
$ |
594,138 |
|
|
$ |
581,352 |
|
|
$ |
561,446 |
|
|
$ |
1,692,955 |
|
|
$ |
1,826,344 |
|
|
Leasing Concessions amortized |
|
10,896 |
|
|
|
4,255 |
|
|
|
10,979 |
|
|
|
13,166 |
|
|
|
35,463 |
|
|
|
6,864 |
|
|
Leasing Concessions granted (2) |
|
(2,164 |
) |
|
|
(12,020 |
) |
|
|
(2,193 |
) |
|
|
(8,298 |
) |
|
|
(27,312 |
) |
|
|
(16,547 |
) |
|
Same Store Residential Revenues with Leasing |
||||||||||||||||||||||||
Concessions on a cash basis |
$ |
588,068 |
|
|
$ |
586,373 |
|
|
$ |
590,138 |
|
|
$ |
566,314 |
|
|
$ |
1,701,106 |
|
|
$ |
1,816,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% change - GAAP revenue |
|
(2.5 |
%) |
|
|
|
|
|
|
3.5 |
% |
|
|
|
|
|
|
(7.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% change - cash revenue |
|
0.3 |
% |
|
|
|
|
|
|
4.2 |
% |
|
|
|
|
|
|
(6.4 |
%) |
|
|
|
|
(1) |
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail. |
|
(2) |
Monthly Residential Leasing Concessions granted continue to decline. Residential Leasing Concessions granted in September and October (preliminary) 2021 are $0.2 million and less than $50,000, respectively, which are down from their peak of $6.1 million per month in February 2021 and have returned to pre-pandemic levels. |
Same Store Resident/Tenant Accounts Receivable Balances Including 75,288 Same Store Apartment Units $ in thousands |
|||||||||||||||||
|
|
|
|
|
|
|
|||||||||||
|
|
Residential |
|
|
Non-Residential |
|
|||||||||||
Balance Sheet (Other assets): |
|
September 30, 2021 |
|
|
June 30, 2021 |
|
|
September 30, 2021 |
|
|
June 30, 2021 |
|
|||||
Resident/tenant accounts receivable balances |
$ |
42,770 |
|
|
$ |
43,286 |
|
|
$ |
4,064 |
|
|
$ |
6,035 |
|
||
Allowance for doubtful accounts |
|
(37,295 |
) |
|
|
(38,376 |
) |
|
|
(3,442 |
) |
|
|
(5,232 |
) |
||
Net receivable balances |
$ |
5,475 |
|
(1) |
$ |
4,910 |
|
|
$ |
622 |
|
|
$ |
803 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-line receivable balances |
|
$ |
11,488 |
|
(2) |
$ |
20,186 |
|
|
$ |
12,698 |
|
|
$ |
12,777 |
|
(1) |
The Company held same store Residential security deposits approximating 46.1% of the net receivable balance at September 30, 2021. |
|
(2) |
Total same store Residential Leasing Concessions granted in the third quarter of 2021 were approximately $2.2 million. The straight-line receivable balance of $11.5 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues for the remainder of 2021 and the first three quarters of 2022. |
Same Store Residential Bad Debt |
Including 75,288 Same Store Apartment Units |
$ in thousands |
Income Statement (Rental income): |
|
Q3 2021 |
|
|
Q2 2021 |
|
|
Q3 2020 |
|
|||||||
Bad Debt, Net (1) |
|
$ |
4,122 |
|
|
$ |
12,177 |
|
|
$ |
15,608 |
|
||||
% of Same Store Residential Revenues |
|
|
0.7 |
% |
|
|
2.2 |
% |
|
|
2.6 |
% |
(1) |
Bad Debt, Net in Q3 2021 benefited from additional resident payments due to governmental rental assistance programs. |
Equity Residential Third Quarter 2021 vs. Third Quarter 2020 Same Store Residential Results/Statistics by Market |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Year's Quarter |
|
|||||||||||||||||||||
Markets/Metro Areas |
|
Apartment
|
|
|
Q3 2021
|
|
|
Q3 2021
|
|
|
Q3 2021
|
|
|
Q3 2021
|
|
|
Revenues |
|
|
Expenses |
|
|
NOI |
|
|
Average
|
|
|
Physical
|
|
|
Turnover |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles |
|
|
15,739 |
|
|
|
21.0 |
% |
|
$ |
2,526 |
|
|
|
97.3 |
% |
|
|
11.7 |
% |
|
|
4.1 |
% |
|
|
0.3 |
% |
|
|
5.9 |
% |
|
|
2.7 |
% |
|
|
1.3 |
% |
|
|
(3.5 |
%) |
Orange County |
|
|
4,028 |
|
|
|
5.7 |
% |
|
|
2,383 |
|
|
|
98.1 |
% |
|
|
11.0 |
% |
|
|
7.7 |
% |
|
|
0.4 |
% |
|
|
10.1 |
% |
|
|
6.2 |
% |
|
|
1.3 |
% |
|
|
(4.9 |
%) |
San Diego |
|
|
2,706 |
|
|
|
4.1 |
% |
|
|
2,554 |
|
|
|
97.8 |
% |
|
|
14.0 |
% |
|
|
8.8 |
% |
|
|
1.8 |
% |
|
|
11.2 |
% |
|
|
8.0 |
% |
|
|
0.7 |
% |
|
|
(2.0 |
%) |
Subtotal – Southern California |
|
|
22,473 |
|
|
|
30.8 |
% |
|
|
2,504 |
|
|
|
97.5 |
% |
|
|
11.8 |
% |
|
|
5.3 |
% |
|
|
0.5 |
% |
|
|
7.4 |
% |
|
|
3.9 |
% |
|
|
1.2 |
% |
|
|
(3.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco |
|
|
12,114 |
|
|
|
18.3 |
% |
|
|
2,898 |
|
|
|
95.4 |
% |
|
|
14.1 |
% |
|
|
(9.0 |
%) |
|
|
1.9 |
% |
|
|
(13.2 |
%) |
|
|
(10.0 |
%) |
|
|
1.0 |
% |
|
|
(4.8 |
%) |
Washington DC |
|
|
14,569 |
|
|
|
17.1 |
% |
|
|
2,335 |
|
|
|
96.6 |
% |
|
|
14.8 |
% |
|
|
(3.6 |
%) |
|
|
4.6 |
% |
|
|
(7.4 |
%) |
|
|
(4.6 |
%) |
|
|
1.0 |
% |
|
|
(2.8 |
%) |
New York |
|
|
9,343 |
|
|
|
12.3 |
% |
|
|
3,482 |
|
|
|
96.8 |
% |
|
|
12.2 |
% |
|
|
(4.0 |
%) |
|
|
0.6 |
% |
|
|
(8.3 |
%) |
|
|
(9.6 |
%) |
|
|
5.7 |
% |
|
|
(8.3 |
%) |
Seattle |
|
|
8,956 |
|
|
|
10.3 |
% |
|
|
2,261 |
|
|
|
96.2 |
% |
|
|
14.3 |
% |
|
|
(5.9 |
%) |
|
|
6.1 |
% |
|
|
(10.8 |
%) |
|
|
(7.4 |
%) |
|
|
1.6 |
% |
|
|
(3.2 |
%) |
Boston |
|
|
6,430 |
|
|
|
9.4 |
% |
|
|
2,881 |
|
|
|
95.8 |
% |
|
|
17.0 |
% |
|
|
(4.1 |
%) |
|
|
2.3 |
% |
|
|
(7.0 |
%) |
|
|
(6.4 |
%) |
|
|
2.3 |
% |
|
|
(3.7 |
%) |
Denver |
|
|
1,624 |
|
|
|
1.8 |
% |
|
|
2,091 |
|
|
|
96.9 |
% |
|
|
18.4 |
% |
|
|
4.5 |
% |
|
|
1.8 |
% |
|
|
5.7 |
% |
|
|
2.5 |
% |
|
|
1.8 |
% |
|
|
(4.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
75,509 |
|
|
|
100.0 |
% |
|
$ |
2,649 |
|
|
|
96.6 |
% |
|
|
13.7 |
% |
|
|
(2.5 |
%) |
(1) |
|
2.1 |
% |
|
|
(4.8 |
%) |
|
|
(4.4 |
%) |
|
|
1.9 |
% |
|
|
(4.2 |
%) |
(1) |
With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 0.3% in the third quarter of 2021 compared to the third quarter of 2020. See page 12 for additional detail and reconciliations. |
|
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the nine months ended September 30, 2021. |
Equity Residential Third Quarter 2021 vs. Second Quarter 2021 Same Store Residential Results/Statistics by Market |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Quarter |
|
|||||||||||||||||||||
Markets/Metro Areas |
|
Apartment
|
|
|
Q3 2021
|
|
|
Q3 2021
|
|
|
Q3 2021
|
|
|
Q3 2021
|
|
|
Revenues |
|
|
Expenses |
|
|
NOI |
|
|
Average
|
|
|
Physical
|
|
|
Turnover |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles |
|
|
15,739 |
|
|
|
20.9 |
% |
|
$ |
2,526 |
|
|
|
97.3 |
% |
|
|
11.7 |
% |
|
|
6.6 |
% |
|
|
2.8 |
% |
|
|
8.4 |
% |
|
|
5.7 |
% |
|
|
0.8 |
% |
|
|
1.2 |
% |
Orange County |
|
|
4,028 |
|
|
|
5.7 |
% |
|
|
2,383 |
|
|
|
98.1 |
% |
|
|
11.0 |
% |
|
|
6.0 |
% |
|
|
5.9 |
% |
|
|
6.0 |
% |
|
|
5.7 |
% |
|
|
0.2 |
% |
|
|
2.7 |
% |
San Diego |
|
|
2,706 |
|
|
|
4.1 |
% |
|
|
2,554 |
|
|
|
97.8 |
% |
|
|
14.0 |
% |
|
|
5.7 |
% |
|
|
4.2 |
% |
|
|
6.2 |
% |
|
|
6.1 |
% |
|
|
(0.4 |
%) |
|
|
3.9 |
% |
Subtotal – Southern California |
|
|
22,473 |
|
|
|
30.7 |
% |
|
|
2,504 |
|
|
|
97.5 |
% |
|
|
11.8 |
% |
|
|
6.4 |
% |
|
|
3.3 |
% |
|
|
7.7 |
% |
|
|
5.7 |
% |
|
|
0.6 |
% |
|
|
1.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco |
|
|
12,114 |
|
|
|
18.2 |
% |
|
|
2,898 |
|
|
|
95.4 |
% |
|
|
14.1 |
% |
|
|
2.7 |
% |
|
|
3.4 |
% |
|
|
2.4 |
% |
|
|
2.6 |
% |
|
|
0.1 |
% |
|
|
2.7 |
% |
Washington DC |
|
|
14,569 |
|
|
|
17.0 |
% |
|
|
2,335 |
|
|
|
96.6 |
% |
|
|
14.8 |
% |
|
|
1.2 |
% |
|
|
8.8 |
% |
|
|
(2.4 |
%) |
|
|
0.8 |
% |
|
|
0.3 |
% |
|
|
2.8 |
% |
New York |
|
|
9,343 |
|
|
|
12.2 |
% |
|
|
3,482 |
|
|
|
96.8 |
% |
|
|
12.2 |
% |
|
|
4.0 |
% |
|
|
0.6 |
% |
|
|
7.7 |
% |
|
|
2.3 |
% |
|
|
1.6 |
% |
|
|
2.1 |
% |
Seattle |
|
|
9,331 |
|
|
|
10.7 |
% |
|
|
2,246 |
|
|
|
96.1 |
% |
|
|
14.4 |
% |
|
|
2.3 |
% |
|
|
3.9 |
% |
|
|
1.5 |
% |
|
|
1.8 |
% |
|
|
0.5 |
% |
|
|
0.7 |
% |
Boston |
|
|
6,430 |
|
|
|
9.4 |
% |
|
|
2,881 |
|
|
|
95.8 |
% |
|
|
17.0 |
% |
|
|
1.7 |
% |
|
|
6.4 |
% |
|
|
(0.4 |
%) |
|
|
1.9 |
% |
|
|
(0.2 |
%) |
|
|
5.2 |
% |
Denver |
|
|
1,624 |
|
|
|
1.8 |
% |
|
|
2,091 |
|
|
|
96.9 |
% |
|
|
18.4 |
% |
|
|
3.8 |
% |
|
|
11.1 |
% |
|
|
0.9 |
% |
|
|
3.8 |
% |
|
|
(0.1 |
%) |
|
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
75,884 |
|
|
|
100.0 |
% |
|
$ |
2,645 |
|
|
|
96.6 |
% |
|
|
13.7 |
% |
|
|
3.5 |
% |
(1) |
|
4.0 |
% |
|
|
3.3 |
% |
|
|
3.0 |
% |
|
|
0.5 |
% |
|
|
2.3 |
% |
(1) |
With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 4.2% in the third quarter of 2021 compared to the second quarter of 2021. See page 12 for additional detail and reconciliations. |
|
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the nine months ended September 30, 2021. |
Equity Residential September YTD 2021 vs. September YTD 2020 Same Store Residential Results/Statistics by Market |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Year |
|
|||||||||||||||||||||
Markets/Metro Areas |
|
Apartment
|
|
|
Sept. YTD 21
|
|
|
Sept. YTD 21
|
|
|
Sept. YTD 21
|
|
|
Sept. YTD 21
|
|
|
Revenues |
|
|
Expenses |
|
|
NOI |
|
|
Average
|
|
|
Physical
|
|
|
Turnover |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles |
|
|
15,739 |
|
|
|
20.4 |
% |
|
$ |
2,439 |
|
|
|
96.5 |
% |
|
|
32.2 |
% |
|
|
(3.2 |
%) |
|
|
1.3 |
% |
|
|
(5.2 |
%) |
|
|
(4.1 |
%) |
|
|
0.9 |
% |
|
|
(6.1 |
%) |
Orange County |
|
|
4,028 |
|
|
|
5.6 |
% |
|
|
2,281 |
|
|
|
97.7 |
% |
|
|
27.2 |
% |
|
|
1.9 |
% |
|
|
2.1 |
% |
|
|
1.8 |
% |
|
|
0.9 |
% |
|
|
1.1 |
% |
|
|
(7.5 |
%) |
San Diego |
|
|
2,706 |
|
|
|
4.1 |
% |
|
|
2,446 |
|
|
|
97.7 |
% |
|
|
34.5 |
% |
|
|
3.9 |
% |
|
|
1.7 |
% |
|
|
4.7 |
% |
|
|
3.0 |
% |
|
|
0.9 |
% |
|
|
(3.1 |
%) |
Subtotal – Southern California |
|
|
22,473 |
|
|
|
30.1 |
% |
|
|
2,411 |
|
|
|
96.9 |
% |
|
|
31.6 |
% |
|
|
(1.5 |
%) |
|
|
1.5 |
% |
|
|
(2.7 |
%) |
|
|
(2.5 |
%) |
|
|
1.0 |
% |
|
|
(5.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco |
|
|
12,114 |
|
|
|
18.6 |
% |
|
|
2,877 |
|
|
|
94.8 |
% |
|
|
37.0 |
% |
|
|
(13.5 |
%) |
|
|
3.4 |
% |
|
|
(19.4 |
%) |
|
|
(13.0 |
%) |
|
|
(0.5 |
%) |
|
|
(3.4 |
%) |
Washington DC |
|
|
14,569 |
|
|
|
17.8 |
% |
|
|
2,326 |
|
|
|
96.3 |
% |
|
|
36.4 |
% |
|
|
(4.6 |
%) |
|
|
3.9 |
% |
|
|
(8.4 |
%) |
|
|
(5.2 |
%) |
|
|
0.6 |
% |
|
|
(1.1 |
%) |
New York |
|
|
9,343 |
|
|
|
11.7 |
% |
|
|
3,463 |
|
|
|
94.4 |
% |
|
|
30.6 |
% |
|
|
(11.6 |
%) |
|
|
2.9 |
% |
|
|
(23.8 |
%) |
|
|
(12.1 |
%) |
|
|
0.5 |
% |
|
|
(8.8 |
%) |
Seattle |
|
|
8,819 |
|
|
|
10.5 |
% |
|
|
2,251 |
|
|
|
95.8 |
% |
|
|
39.1 |
% |
|
|
(8.8 |
%) |
|
|
4.9 |
% |
|
|
(14.3 |
%) |
|
|
(9.0 |
%) |
|
|
0.2 |
% |
|
|
(1.3 |
%) |
Boston |
|
|
6,346 |
|
|
|
9.5 |
% |
|
|
2,853 |
|
|
|
95.7 |
% |
|
|
37.5 |
% |
|
|
(7.9 |
%) |
|
|
4.0 |
% |
|
|
(12.8 |
%) |
|
|
(9.3 |
%) |
|
|
1.4 |
% |
|
|
(5.8 |
%) |
Denver |
|
|
1,624 |
|
|
|
1.8 |
% |
|
|
2,031 |
|
|
|
96.7 |
% |
|
|
45.9 |
% |
|
|
1.1 |
% |
|
|
4.1 |
% |
|
|
(0.2 |
%) |
|
|
(0.8 |
%) |
|
|
1.8 |
% |
|
|
(8.2 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
75,288 |
|
|
|
100.0 |
% |
|
$ |
2,607 |
|
|
|
95.9 |
% |
|
|
35.0 |
% |
|
|
(7.3 |
%) |
(1) |
|
3.1 |
% |
|
|
(12.1 |
%) |
|
|
(7.8 |
%) |
|
|
0.6 |
% |
|
|
(4.4 |
%) |
(1) |
With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 6.4% in the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. See page 12 for additional detail and reconciliations. |
|
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the nine months ended September 30, 2021. |
Equity Residential Same Store Residential Net Effective Lease Pricing Statistics For 75,288 Same Store Apartment Units |
|
|
New Lease Change (1) |
|
|
Renewal Rate Achieved (1) |
|
|
Blended Rate (1) |
|
|||||||||||||||
Markets/Metro Areas |
|
Q3 2021 |
|
|
Q2 2021 |
|
|
Q3 2021 |
|
|
Q2 2021 |
|
|
Q3 2021 |
|
|
Q2 2021 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southern California |
|
|
13.5 |
% |
|
|
2.0 |
% |
|
|
6.1 |
% |
|
|
3.6 |
% |
|
|
9.1 |
% |
|
|
2.9 |
% |
San Francisco |
|
|
3.1 |
% |
|
|
(9.9 |
%) |
|
|
5.6 |
% |
|
|
(3.7 |
%) |
|
|
4.4 |
% |
|
|
(7.3 |
%) |
Washington DC |
|
|
3.9 |
% |
|
|
(7.0 |
%) |
|
|
2.1 |
% |
|
|
(0.1 |
%) |
|
|
3.0 |
% |
|
|
(3.8 |
%) |
New York |
|
|
13.8 |
% |
|
|
(12.9 |
%) |
|
|
8.0 |
% |
|
|
(2.1 |
%) |
|
|
10.4 |
% |
|
|
(7.8 |
%) |
Seattle |
|
|
15.6 |
% |
|
|
(4.3 |
%) |
|
|
4.3 |
% |
|
|
(1.3 |
%) |
|
|
8.9 |
% |
|
|
(2.8 |
%) |
Boston |
|
|
13.3 |
% |
|
|
(1.5 |
%) |
|
|
6.4 |
% |
|
|
0.7 |
% |
|
|
9.7 |
% |
|
|
(0.3 |
%) |
Denver |
|
|
16.1 |
% |
|
|
3.9 |
% |
|
|
8.0 |
% |
|
|
6.6 |
% |
|
|
12.0 |
% |
|
|
5.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
10.1 |
% |
|
|
(5.4 |
%) |
|
|
5.6 |
% |
|
|
0.2 |
% |
|
|
7.6 |
% |
|
|
(2.8 |
%) |
(1) |
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions. See page 3 for October 2021 preliminary data. |
Equity Residential |
Third Quarter 2021 vs. Third Quarter 2020 Total Same Store Operating Expenses Including 75,509 Same Store Apartment Units $ in thousands |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q3 2021 |
|
|
Q3 2020 |
|
|
$
|
|
|
%
|
|
|
% of
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate taxes |
|
$ |
87,472 |
|
|
$ |
86,600 |
|
|
$ |
872 |
|
|
|
1.0 |
% |
|
|
42.4 |
% |
On-site payroll |
|
|
42,175 |
|
|
|
42,455 |
|
|
|
(280 |
) |
|
|
(0.7 |
%) |
|
|
20.4 |
% |
Utilities |
|
|
29,475 |
|
|
|
27,285 |
|
|
|
2,190 |
|
|
|
8.0 |
% |
|
|
14.3 |
% |
Repairs and maintenance |
|
|
26,903 |
|
|
|
26,477 |
|
|
|
426 |
|
|
|
1.6 |
% |
|
|
13.0 |
% |
Insurance |
|
|
6,782 |
|
|
|
6,149 |
|
|
|
633 |
|
|
|
10.3 |
% |
|
|
3.3 |
% |
Leasing and advertising |
|
|
2,556 |
|
|
|
3,011 |
|
|
|
(455 |
) |
|
|
(15.1 |
%) |
|
|
1.2 |
% |
Other on-site operating expenses |
|
|
11,220 |
|
|
|
10,187 |
|
|
|
1,033 |
|
|
|
10.1 |
% |
|
|
5.4 |
% |
Total Same Store Operating Expenses (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(includes Residential and Non-Residential) |
|
$ |
206,583 |
|
|
$ |
202,164 |
|
|
$ |
4,419 |
|
|
|
2.2 |
% |
|
|
100.0 |
% |
September YTD 2021 vs. September YTD 2020 Total Same Store Operating Expenses Including 75,288 Same Store Apartment Units $ in thousands |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
YTD 2021 |
|
|
YTD 2020 |
|
|
$
|
|
|
%
|
|
|
% of
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate taxes |
|
$ |
263,521 |
|
|
$ |
259,603 |
|
|
$ |
3,918 |
|
|
|
1.5 |
% |
|
|
43.0 |
% |
On-site payroll |
|
|
123,966 |
|
|
|
124,652 |
|
|
|
(686 |
) |
|
|
(0.6 |
%) |
|
|
20.3 |
% |
Utilities |
|
|
85,290 |
|
|
|
78,408 |
|
|
|
6,882 |
|
|
|
8.8 |
% |
|
|
13.9 |
% |
Repairs and maintenance |
|
|
77,320 |
|
|
|
71,359 |
|
|
|
5,961 |
|
|
|
8.4 |
% |
|
|
12.6 |
% |
Insurance |
|
|
20,254 |
|
|
|
18,403 |
|
|
|
1,851 |
|
|
|
10.1 |
% |
|
|
3.3 |
% |
Leasing and advertising |
|
|
8,028 |
|
|
|
7,409 |
|
|
|
619 |
|
|
|
8.4 |
% |
|
|
1.3 |
% |
Other on-site operating expenses |
|
|
34,326 |
|
|
|
33,668 |
|
|
|
658 |
|
|
|
2.0 |
% |
|
|
5.6 |
% |
Total Same Store Operating Expenses (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(includes Residential and Non-Residential) |
|
$ |
612,705 |
|
|
$ |
593,502 |
|
|
$ |
19,203 |
|
|
|
3.2 |
% |
|
|
100.0 |
% |
(1) |
The quarter-over-quarter and year-over-year changes were primarily driven by the following factors: |
|
|
|
|
|
Real estate taxes – Increase is lower than expected due to lower rates and assessed values. |
|
|
|
|
|
On-site payroll – Improved sales and service staff utilization from various technology initiatives and higher than usual staffing vacancies during the current periods. |
|
|
|
|
|
Utilities – Water, sewer and trash charges (approximately 65% of total) increased due to both usage and rate. Natural gas and electric charges (approximately 35% of total) increased due to higher commodity prices. |
|
|
|
|
|
Repairs and maintenance – Year-over-year increase primarily driven by low comparable period expense growth due to the pandemic and increases in minimum wage on contract services and maintenance repairs (including higher turnover expense from robust leasing activity) in 2021. |
|
|
|
|
|
Insurance – Increase due to higher premiums on property insurance renewal due to challenging conditions in the insurance market. |
|
|
|
|
|
Leasing and advertising – Year-over-year increase primarily driven by increased digital advertising. |
|
|
|
|
|
Other on-site operating expenses – Increase driven by higher ground lease-related expenses. |
|
|
||
(2) |
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. |
Equity Residential |
Debt Summary as of September 30, 2021 ($ in thousands) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Debt
|
|
|
% of Total |
|
|
Weighted
|
|
|
Weighted
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured |
|
$ |
2,281,165 |
|
|
|
28.0 |
% |
|
|
3.16 |
% |
|
|
5.6 |
|
Unsecured |
|
|
5,863,483 |
|
|
|
72.0 |
% |
|
|
3.38 |
% |
|
|
10.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
8,144,648 |
|
|
|
100.0 |
% |
|
|
3.32 |
% |
|
|
8.9 |
|
Fixed Rate Debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|