2022 Guidance Reflects Acceleration in Growth
Equity Residential (NYSE: EQR) today reported results for the quarter and year ended December 31, 2021. All per share results are reported as available to common shares/units on a diluted basis. For the fourth quarter of 2021, the Company reported earnings per share (EPS), Funds from Operations (FFO) per share and Normalized FFO per share of $1.40, $0.76 and $0.82, respectively. For the full year of 2021, the Company reported EPS, FFO per share and Normalized FFO per share of $3.54, $2.96 and $2.99, respectively.
“Robust demand in the fourth quarter drove high occupancy and the lowest resident Turnover in our history, allowing us to continue to increase rents. We expect operations and cash flows in 2022 to accelerate further as we write new leases at significantly higher current market rent levels and benefit from continuing deep demand. Our target affluent renter demographic remains drawn to the attractive lifestyle that our high quality urban and suburban properties and dedicated property teams provide,” said Mark J. Parrell, Equity Residential’s President and CEO. “Our capital allocation plan remains solidly on track as we actively buy and build in our expansion markets and the more desirable suburbs of our established markets where increasing numbers of affluent renters wish to live, work and play.”
Recent Highlights
- Healthy demand (and in the case of EPS, higher property sale gains) drove a 105.9% increase in EPS, 4.1% increase in FFO per share and 7.9% increase in Normalized FFO per share during the fourth quarter of 2021 compared to the same period of 2020.
- The Company reported a 4.9% increase in same store revenue for the fourth quarter of 2021 compared to the same period of 2020, driven by strong Physical Occupancy, a substantial improvement in pricing power and an increase in Non-Residential revenues.
- The Company reported a 3.0% increase in same store expenses for the full year of 2021, reflecting the Company’s continued success in managing controllable expenses and modest growth in real estate taxes.
- The Company reported same store Turnover of 9.4% for the fourth quarter of 2021 and 44.4% for the full year of 2021, both the lowest in the Company’s history, demonstrating the depth of demand from its residents.
- The Company provided full year 2022 operating guidance that anticipates a 19.5%, 15.2%, and 15.4% increase in EPS, FFO per share and Normalized FFO per share, respectively, driven by expected total same store revenue growth of 9.0% at the midpoint (and in the case of EPS, higher expected property sale gains).
- The Company continued to successfully execute on its capital allocation strategy during the fourth quarter of 2021 with the acquisition of six operating properties in its expansion markets for an aggregate purchase price of approximately $689.0 million and the disposition of four operating properties in its California and Washington, D.C. markets for an aggregate sale price of approximately $695.0 million. During the full year of 2021, the Company acquired 17 operating properties for an aggregate purchase price of approximately $1.7 billion and sold 14 operating properties for an aggregate sale price of approximately $1.7 billion.
- The Company was named the Gold Nareit 2021 Diversity, Equity and Inclusion award recipient in recognition of the Company’s demonstration of a strong commitment to the advancement of diversity and inclusion both within the Company and in the REIT and publicly traded real estate industry.
Fourth Quarter and Full Year 2021 Results
The change in EPS for both the quarter and year ended December 31, 2021 compared to the same periods of 2020 is due primarily to higher property sale gains in the fourth quarter and year ended December 31, 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 year ended December 31, 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:
|
|
Positive/(Negative) Impact |
|
|||||
|
|
Fourth Quarter 2021 vs. Fourth Quarter 2020 |
|
|
Full Year 2021 vs. Full Year 2020 |
|
||
Residential same store Net Operating Income (NOI) |
|
$ |
0.05 |
|
|
$ |
(0.33 |
) |
Non-Residential same store NOI |
|
|
0.01 |
|
|
|
0.06 |
|
2021 and 2020 transaction activity impact on NOI, net |
– |
|
|
|
(0.08 |
) |
||
Interest expense, net |
|
|
0.02 |
|
|
|
0.14 |
|
Corporate overhead (1) |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
Other items |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
Net |
|
$ |
0.06 |
|
|
$ |
(0.27 |
) |
(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.
Fourth Quarter and Full Year 2021 Same Store Residential 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 3.9% of total revenues for the year ended December 31, 2021. The table below reflects same store Residential only results.
|
|
Fourth Quarter 2021 vs. Fourth Quarter 2020 |
|
|
Fourth Quarter 2021 vs. Third Quarter 2021 |
|
|
Full Year 2021 vs. Full Year 2020 |
|
|||
Apartment Units |
|
74,298 |
|
|
75,206 |
|
|
74,077 |
|
|||
Physical Occupancy |
|
96.6% vs. 94.2% |
|
|
96.6% vs. 96.6% |
|
|
96.1% vs. 95.0% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
4.3% |
|
|
3.0% |
|
|
(4.6%) |
|
|||
Expenses |
|
1.8% |
|
|
(3.0%) |
|
|
2.8% |
|
|||
NOI |
|
5.6% |
|
|
6.1% |
|
|
(8.1%) |
|
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.
|
Fourth Quarter 2021 vs. Fourth Quarter 2020 |
|
|
Fourth Quarter 2021 vs. Third Quarter 2021 |
|
|
Full Year 2021 vs. Full Year 2020 |
|
|||
|
% Change |
|
|
% Change |
|
|
% Change |
|
|||
Same Store Residential Revenues- |
|
|
|
|
|
|
|
|
|
|
|
comparable period |
|||||||||||
Lease rates (1) |
|
(0.2 |
%) |
|
|
2.0 |
% |
|
|
(5.0 |
%) |
Leasing Concessions |
|
0.2 |
% |
|
|
0.7 |
% |
|
|
(1.1 |
%) |
Vacancy gain (loss) |
|
2.5 |
% |
|
|
0.0 |
% |
|
|
1.3 |
% |
Bad Debt, Net (2) |
|
1.9 |
% |
|
|
0.4 |
% |
|
|
0.4 |
% |
Other (3) |
|
(0.1 |
%) |
|
|
(0.1 |
%) |
|
|
(0.2 |
%) |
Same Store Residential Revenues- |
|||||||||||
current period |
|
4.3 |
% |
|
|
3.0 |
% |
|
|
(4.6 |
%) |
(1) |
The decline in lease rates for the full year 2021 vs. full year 2020 is driven by the cumulative impact of leasing activity over the past twelve months despite meaningful recent improvements. |
|
(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. |
|
(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:
|
|
Q3 2021 |
|
|
Q4 2021 |
|
|
January 2022 (1) |
|
|||
Physical Occupancy (2) |
|
96.7% |
|
|
96.4% |
|
|
96.6% |
|
|||
Percentage of Residents Renewing by quarter/month |
57.4% |
|
|
61.2% |
|
|
61.0% |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
New Lease Change |
|
10.1% |
|
|
10.6% |
|
|
13.4% |
|
|||
Renewal Rate Achieved |
|
5.7% |
|
|
10.7% |
|
|
12.3% |
|
|||
Blended Rate |
|
7.6% |
|
|
10.7% |
|
|
12.7% |
|
(1) |
January 2022 results are preliminary. |
|
(2) |
Physical Occupancy is as of month-end September for Q3 2021, month-end December for Q4 2021 and as of January 27th for January 2022. |
Investment Activity and Portfolio Strategy
The Company continues to optimize its portfolio by allocating capital to desirable suburban locations within its established markets and through expansion into certain new markets that attract a renter demographic that values our exceptional product offering. In support of this strategy, the Company acquired six properties, consisting of 1,826 apartment units, during the fourth quarter of 2021 for an aggregate purchase price of approximately $689.0 million and a weighted average Acquisition Cap Rate of 3.7%. These properties are located in Austin, TX, Dallas/Ft. Worth, TX (2), Atlanta, GA, and Denver, CO (2). For the full year of 2021, the Company acquired 17 properties, consisting of 4,747 apartment units, for an aggregate purchase price of approximately $1.7 billion and a weighted average Acquisition Cap Rate of 3.8%. The average age of the properties acquired in 2021 was two years. Approximately $1.4 billion, or 82.0% of all acquisition activity in 2021, was in expansion markets.
The Company funded these acquisitions by selling older assets located within established markets that no longer met our long-term investment criteria. During the fourth quarter of 2021, the Company sold four properties consisting of 1,211 apartment units, for an aggregate sale price of approximately $695.0 million and a weighted average Disposition Yield of 3.6%, generating an Unlevered IRR of 12.1%. Two of the properties are located in suburban San Francisco, CA, one in suburban Los Angeles, CA and one in suburban Washington, D.C. During the full year of 2021, the Company sold 14 properties, consisting of 3,053 apartment units, for an aggregate sale price of approximately $1.7 billion and a weighted average Disposition Yield of 3.7%, generating an Unlevered IRR of 10.4%. The average age of the properties sold in 2021 was approximately 30 years.
Finally, the Company remains active in development, both directly and through its joint venture partners. During the fourth quarter of 2021, the Company completed the construction of Alcott, a 470-unit wholly owned apartment property in the urban center of Boston, MA for a total development cost of approximately $409.7 million and an expected stabilized Development Yield of 5.6%. Also during the fourth quarter, the Company entered into four unconsolidated joint ventures for the purpose of developing vacant land parcels into approximately 1,275 apartment units in Texas and Colorado. Three of the projects are related to the Company’s joint venture development program with Toll Brothers, Inc. During the full year of 2021, the Company completed three development projects, consisting of 824 apartment units, for a total cost of approximately $602.8 million and started four development projects, consisting of 1,241 apartment units, for a total anticipated cost of approximately $452.7 million.
First Quarter 2022 Guidance
The Company has established guidance ranges for the first quarter of 2022 EPS, FFO per share and Normalized FFO per share as listed below:
|
|
Q1 2022 Guidance |
EPS |
|
$0.85 to $0.89 |
FFO per share |
|
$0.75 to $0.79 |
Normalized FFO per share |
|
$0.76 to $0.80 |
The difference between the fourth quarter 2021 actual EPS of $1.40 and the first quarter of 2022 EPS guidance midpoint of $0.87 is due primarily to lower expected property sale gains and the items described below.
The difference between the fourth quarter 2021 actual FFO of $0.76 per share and the first quarter of 2022 FFO guidance midpoint of $0.77 per share is due primarily to no impairment charges and the items described below.
The difference between the fourth quarter 2021 actual Normalized FFO of $0.82 per share and the first quarter of 2022 Normalized FFO guidance midpoint of $0.78 per share is due primarily to:
|
|
Positive/(Negative) Impact |
|
|
|
|
|
First Quarter 2022 vs.
|
|
|
|
Interest expense, net |
|
$ |
(0.01 |
) |
|
Corporate overhead |
|
|
(0.03 |
) |
|
Net |
|
$ |
(0.04 |
) |
|
Full Year 2022 Guidance
The Company has provided guidance for its full year 2022 same store operating performance as well as EPS, FFO per share and Normalized FFO per share as listed below:
Same Store (includes Residential and Non-Residential): |
|
|||
Physical Occupancy |
|
96.5% |
|
|
Revenue change |
|
8.0% to 10.0% |
|
|
Expense change |
|
2.5% to 3.5% |
|
|
NOI change |
|
11.0% to 13.0% |
|
|
|
|
|
|
|
EPS |
|
$4.18 to $4.28 |
|
|
FFO per share |
|
$3.36 to $3.46 |
|
|
Normalized FFO per share |
|
$3.40 to $3.50 |
|
The difference between the Company’s full year 2021 actual EPS of $3.54 and the full year 2022 EPS guidance midpoint of $4.23 is due primarily to higher expected property sale gains, higher expected depreciation expense, lower expected non-operating asset gains and the items described below.
The difference between the Company’s full year 2021 actual FFO of $2.96 per share and the full year 2022 FFO guidance midpoint of $3.41 per share is due primarily to lower expected non-operating asset gains and the items described below.
The difference between the Company’s full year 2021 actual Normalized FFO of $2.99 per share and the full year 2022 Normalized FFO guidance midpoint of $3.45 per share is due primarily to:
|
|
Positive/(Negative)
|
|
|
|
|
Full Year 2022 vs
|
|
|
Same Store NOI |
|
$ |
0.48 |
|
Lease-Up NOI |
|
|
0.06 |
|
Interest expense, net |
|
|
(0.04 |
) |
Corporate overhead |
|
|
(0.04 |
) |
Net |
|
$ |
0.46 |
|
Key assumptions underlying the full year 2022 guidance are outlined on page 27 of this release.
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. Equity Residential owns or has investments in 310 properties consisting of 80,407 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, February 2, 2022 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) |
||||||||||||||||
|
|
Year Ended December 31, |
|
Quarter Ended December 31, |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income |
|
$ |
2,463,997 |
|
|
$ |
2,571,705 |
|
|
$ |
645,130 |
|
|
$ |
613,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and maintenance |
|
|
453,532 |
|
|
|
440,998 |
|
|
|
112,271 |
|
|
|
107,665 |
|
Real estate taxes and insurance |
|
|
397,105 |
|
|
|
381,562 |
|
|
|
99,325 |
|
|
|
93,519 |
|
Property management |
|
|
98,155 |
|
|
|
93,825 |
|
|
|
23,798 |
|
|
|
22,312 |
|
General and administrative |
|
|
56,506 |
|
|
|
48,305 |
|
|
|
13,404 |
|
|
|
11,093 |
|
Depreciation |
|
|
838,272 |
|
|
|
820,832 |
|
|
|
222,240 |
|
|
|
201,829 |
|
Total expenses |
|
|
1,843,570 |
|
|
|
1,785,522 |
|
|
|
471,038 |
|
|
|
436,418 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on sales of real estate properties |
|
|
1,072,183 |
|
|
|
531,807 |
|
|
|
484,560 |
|
|
|
179,589 |
|
Impairment |
|
|
(16,769 |
) |
|
|
— |
|
|
|
(16,769 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
1,675,841 |
|
|
|
1,317,990 |
|
|
|
641,883 |
|
|
|
356,606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income |
|
|
25,666 |
|
|
|
5,935 |
|
|
|
373 |
|
|
|
1,929 |
|
Other expenses |
|
|
(19,275 |
) |
|
|
(17,510 |
) |
|
|
(8,367 |
) |
|
|
(9,186 |
) |
Interest: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense incurred, net |
|
|
(272,473 |
) |
|
|
(365,073 |
) |
|
|
(69,740 |
) |
|
|
(116,724 |
) |
Amortization of deferred financing costs |
|
|
(8,737 |
) |
|
|
(8,939 |
) |
|
|
(2,565 |
) |
|
|
(2,686 |
) |
Income before income and other taxes, income (loss) from |
||||||||||||||||
investments in unconsolidated entities and net gain (loss) |
||||||||||||||||
on sales of land parcels |
|
|
1,401,022 |
|
|
|
932,403 |
|
|
|
561,584 |
|
|
|
229,939 |
|
Income and other tax (expense) benefit |
|
|
(915 |
) |
|
|
(852 |
) |
|
|
(236 |
) |
|
|
(350 |
) |
Income (loss) from investments in unconsolidated entities |
|
|
(3,398 |
) |
|
|
(3,284 |
) |
|
|
(370 |
) |
|
|
(839 |
) |
Net gain (loss) on sales of land parcels |
|
|
5 |
|
|
|
34,234 |
|
|
|
— |
|
|
|
34,234 |
|
Net income |
|
|
1,396,714 |
|
|
|
962,501 |
|
|
|
560,978 |
|
|
|
262,984 |
|
Net (income) loss attributable to Noncontrolling Interests: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Partnership |
|
|
(45,900 |
) |
|
|
(34,010 |
) |
|
|
(17,997 |
) |
|
|
(9,386 |
) |
Partially Owned Properties |
|
|
(17,964 |
) |
|
|
(14,855 |
) |
|
|
(16,007 |
) |
|
|
(742 |
) |
Net income attributable to controlling interests |
|
|
1,332,850 |
|
|
|
913,636 |
|
|
|
526,974 |
|
|
|
252,856 |
|
Preferred distributions |
|
|
(3,090 |
) |
|
|
(3,090 |
) |
|
|
(772 |
) |
|
|
(772 |
) |
Net income available to Common Shares |
|
$ |
1,329,760 |
|
|
$ |
910,546 |
|
|
$ |
526,202 |
|
|
$ |
252,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share – basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Common Shares |
|
$ |
3.56 |
|
|
$ |
2.45 |
|
|
$ |
1.40 |
|
|
$ |
0.68 |
|
Weighted average Common Shares outstanding |
|
|
373,833 |
|
|
|
371,791 |
|
|
|
374,897 |
|
|
|
371,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share – diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Common Shares |
|
$ |
3.54 |
|
|
$ |
2.45 |
|
|
$ |
1.40 |
|
|
$ |
0.68 |
|
Weighted average Common Shares outstanding |
|
|
388,089 |
|
|
|
385,874 |
|
|
|
389,000 |
|
|
|
385,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions declared per Common Share outstanding |
|
$ |
2.41 |
|
|
$ |
2.41 |
|
|
$ |
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) |
||||||||||||||||
|
|
Year Ended December 31, |
|
Quarter Ended December 31, |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net income |
|
$ |
1,396,714 |
|
|
$ |
962,501 |
|
|
$ |
560,978 |
|
|
$ |
262,984 |
|
Net (income) loss attributable to Noncontrolling Interests – Partially |
||||||||||||||||
Owned Properties |
|
|
(17,964 |
) |
|
|
(14,855 |
) |
|
|
(16,007 |
) |
|
|
(742 |
) |
Preferred distributions |
|
|
(3,090 |
) |
|
|
(3,090 |
) |
|
|
(772 |
) |
|
|
(772 |
) |
Net income available to Common Shares and Units |
|
|
1,375,660 |
|
|
|
944,556 |
|
|
|
544,199 |
|
|
|
261,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
838,272 |
|
|
|
820,832 |
|
|
|
222,240 |
|
|
|
201,829 |
|
Depreciation – Non-real estate additions |
|
|
(4,277 |
) |
|
|
(4,564 |
) |
|
|
(1,049 |
) |
|
|
(1,131 |
) |
Depreciation – Partially Owned Properties |
|
|
(3,673 |
) |
|
|
(3,345 |
) |
|
|
(997 |
) |
|
|
(831 |
) |
Depreciation – Unconsolidated Properties |
|
|
2,487 |
|
|
|
2,454 |
|
|
|
620 |
|
|
|
616 |
|
Net (gain) loss on sales of unconsolidated entities - operating |
||||||||||||||||
assets |
|
|
(1,304 |
) |
|
|
(1,636 |
) |
|
|
(1,300 |
) |
|
|
(636 |
) |
Net (gain) loss on sales of real estate properties |
|
|
(1,072,183 |
) |
|
|
(531,807 |
) |
|
|
(484,560 |
) |
|
|
(179,589 |
) |
Noncontrolling Interests share of gain (loss) on sales |
||||||||||||||||
of real estate properties |
|
|
15,650 |
|
|
|
11,655 |
|
|
|
15,650 |
|
|
|
— |
|
FFO available to Common Shares and Units |
|
|
1,150,632 |
|
|
|
1,238,145 |
|
|
|
294,803 |
|
|
|
281,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments (see note for additional detail): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment – non-operating assets |
|
|
16,769 |
|
|
|
— |
|
|
|
16,769 |
|
|
|
— |
|
Write-off of pursuit costs |
|
|
6,526 |
|
|
|
6,869 |
|
|
|
2,969 |
|
|
|
2,005 |
|
Debt extinguishment and preferred share redemption (gains) |
||||||||||||||||
losses |
|
|
744 |
|
|
|
39,292 |
|
|
|
480 |
|
|
|
39,255 |
|
Non-operating asset (gains) losses |
|
|
(22,283 |
) |
|
|
(32,590 |
) |
|
|
731 |
|
|
|
(33,612 |
) |
Other miscellaneous items |
|
|
8,976 |
|
|
|
4,652 |
|
|
|
4,456 |
|
|
|
5,166 |
|
Normalized FFO available to Common Shares and Units |
|
$ |
1,161,364 |
|
|
$ |
1,256,368 |
|
|
$ |
320,208 |
|
|
$ |
294,542 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO |
|
$ |
1,153,722 |
|
|
$ |
1,241,235 |
|
|
$ |
295,575 |
|
|
$ |
282,500 |
|
Preferred distributions |
|
|
(3,090 |
) |
|
|
(3,090 |
) |
|
|
(772 |
) |
|
|
(772 |
) |
FFO available to Common Shares and Units |
|
$ |
1,150,632 |
|
|
$ |
1,238,145 |
|
|
$ |
294,803 |
|
|
$ |
281,728 |
|
FFO per share and Unit – basic |
|
$ |
2.98 |
|
|
$ |
3.22 |
|
|
$ |
0.76 |
|
|
$ |
0.73 |
|
FFO per share and Unit – diluted |
|
$ |
2.96 |
|
|
$ |
3.21 |
|
|
$ |
0.76 |
|
|
$ |
0.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized FFO |
|
$ |
1,164,454 |
|
|
$ |
1,259,458 |
|
|
$ |
320,980 |
|
|
$ |
295,314 |
|
Preferred distributions |
|
|
(3,090 |
) |
|
|
(3,090 |
) |
|
|
(772 |
) |
|
|
(772 |
) |
Normalized FFO available to Common Shares and Units |
|
$ |
1,161,364 |
|
|
$ |
1,256,368 |
|
|
$ |
320,208 |
|
|
$ |
294,542 |
|
Normalized FFO per share and Unit – basic |
|
$ |
3.01 |
|
|
$ |
3.27 |
|
|
$ |
0.83 |
|
|
$ |
0.77 |
|
Normalized FFO per share and Unit – diluted |
|
$ |
2.99 |
|
|
$ |
3.26 |
|
|
$ |
0.82 |
|
|
$ |
0.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average Common Shares and Units outstanding – basic |
|
|
386,096 |
|
|
|
384,794 |
|
|
|
386,851 |
|
|
|
384,899 |
|
Weighted average Common Shares and Units outstanding – diluted |
|
|
388,089 |
|
|
|
385,874 |
|
|
|
389,000 |
|
|
|
385,756 |
|
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) |
||||||||
|
|
December 31, |
|
December 31, |
||||
|
|
2021 |
|
2020 |
||||
ASSETS |
|
|
|
|
|
|
|
|
Land |
|
$ |
5,814,790 |
|
|
$ |
5,785,367 |
|
Depreciable property |
|
|
22,370,811 |
|
|
|
20,920,654 |
|
Projects under development |
|
|
24,307 |
|
|
|
411,134 |
|
Land held for development |
|
|
62,998 |
|
|
|
86,170 |
|
Investment in real estate |
|
|
28,272,906 |
|
|
|
27,203,325 |
|
Accumulated depreciation |
|
|
(8,354,282 |
) |
|
|
(7,859,657 |
) |
Investment in real estate, net |
|
|
19,918,624 |
|
|
|
19,343,668 |
|
Investments in unconsolidated entities |
|
|
127,448 |
|
|
|
52,782 |
|
Cash and cash equivalents |
|
|
123,832 |
|
|
|
42,591 |
|
Restricted deposits |
|
|
236,404 |
|
|
|
57,137 |
|
Right-of-use assets |
|
|
474,713 |
|
|
|
499,287 |
|
Other assets |
|
|
288,220 |
|
|
|
291,426 |
|
Total assets |
|
$ |
21,169,241 |
|
|
$ |
20,286,891 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Mortgage notes payable, net |
|
$ |
2,191,201 |
|
|
$ |
2,293,890 |
|
Notes, net |
|
|
5,835,222 |
|
|
|
5,335,536 |
|
Line of credit and commercial paper |
|
|
315,030 |
|
|
|
414,830 |
|
Accounts payable and accrued expenses |
|
|
107,013 |
|
|
|
107,366 |
|
Accrued interest payable |
|
|
69,510 |
|
|
|
65,896 |
|
Lease liabilities |
|
|
312,335 |
|
|
|
329,130 |
|
Other liabilities |
|
|
353,102 |
|
|
|
345,064 |
|
Security deposits |
|
|
66,141 |
|
|
|
60,480 |
|
Distributions payable |
|
|
233,502 |
|
|
|
232,262 |
|
Total liabilities |
|
|
9,483,056 |
|
|
|
9,184,454 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable Noncontrolling Interests – Operating Partnership |
|
|
498,977 |
|
|
|
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 December 31, 2021 and December 31, 2020 |
|
|
37,280 |
|
|
|
37,280 |
|
Common Shares of beneficial interest, $0.01 par value; |
||||||||
1,000,000,000 shares authorized; 375,527,195 shares issued |
||||||||
and outstanding as of December 31, 2021 and 372,302,000 |
||||||||
shares issued and outstanding as of December 31, 2020 |
|
|
3,755 |
|
|
|
3,723 |
|
Paid in capital |
|
|
9,121,122 |
|
|
|
9,128,599 |
|
Retained earnings |
|
|
1,827,063 |
|
|
|
1,399,715 |
|
Accumulated other comprehensive income (loss) |
|
|
(34,272 |
) |
|
|
(43,666 |
) |
Total shareholders’ equity |
|
|
10,954,948 |
|
|
|
10,525,651 |
|
Noncontrolling Interests: |
|
|
|
|
|
|
|
|
Operating Partnership |
|
|
214,094 |
|
|
|
233,162 |
|
Partially Owned Properties |
|
|
18,166 |
|
|
|
4,673 |
|
Total Noncontrolling Interests |
|
|
232,260 |
|
|
|
237,835 |
|
Total equity |
|
|
11,187,208 |
|
|
|
10,763,486 |
|
Total liabilities and equity |
|
$ |
21,169,241 |
|
|
$ |
20,286,891 |
|
Equity Residential
Portfolio Summary As of December 31, 2021 |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
% of
|
|
|
Average |
|
||
|
|
|
|
|
|
Apartment |
|
|
Budgeted |
|
|
Rental |
|
|||
Markets/Metro Areas |
|
Properties |
|
|
Units |
|
|
NOI |
|
|
Rate |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Established Markets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles |
|
|
66 |
|
|
|
15,259 |
|
|
|
18.6 |
% |
|
$ |
2,673 |
|
Orange County |
|
|
13 |
|
|
|
4,028 |
|
|
|
5.3 |
% |
|
|
2,427 |
|
San Diego |
|
|
11 |
|
|
|
2,706 |
|
|
|
3.7 |
% |
|
|
2,598 |
|
Subtotal – Southern California |
|
|
90 |
|
|
|
21,993 |
|
|
|
27.6 |
% |
|
|
2,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco |
|
|
44 |
|
|
|
11,830 |
|
|
|
16.0 |
% |
|
|
2,957 |
|
Washington DC |
|
|
48 |
|
|
|
14,851 |
|
|
|
15.5 |
% |
|
|
2,358 |
|
New York |
|
|
36 |
|
|
|
9,343 |
|
|
|
13.7 |
% |
|
|
3,597 |
|
Boston |
|
|
27 |
|
|
|
7,170 |
|
|
|
11.4 |
% |
|
|
3,049 |
|
Seattle |
|
|
46 |
|
|
|
9,525 |
|
|
|
11.0 |
% |
|
|
2,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expansion Markets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denver |
|
|
8 |
|
|
|
2,498 |
|
|
|
2.6 |
% |
|
|
2,197 |
|
Atlanta |
|
|
4 |
|
|
|
1,215 |
|
|
|
1.0 |
% |
|
|
1,935 |
|
Dallas/Ft. Worth |
|
|
4 |
|
|
|
1,241 |
|
|
|
0.8 |
% |
|
|
1,868 |
|
Austin |
|
|
3 |
|
|
|
741 |
|
|
|
0.4 |
% |
|
|
1,694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
310 |
|
|
|
80,407 |
|
|
|
100.0 |
% |
|
$ |
2,696 |
|
|
|
Properties |
|
|
Apartment Units |
|
||
|
|
|
|
|
|
|
|
|
Wholly Owned Properties |
|
|
294 |
|
|
|
76,861 |
|
Partially Owned Properties – Consolidated |
|
|
16 |
|
|
|
3,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
310 |
|
|
|
80,407 |
|
Note: Projects under development are not included in the Portfolio Summary until construction has been completed. |
Equity Residential |
||||||||||||||||||
Portfolio Rollforward Q4 2021 ($ in thousands) |
||||||||||||||||||
|
|
|
|
Properties |
|
|
Apartment
|
|
|
Purchase
|
|
|
Acquisition
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9/30/2021 |
|
|
307 |
|
|
|
79,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Rental Properties |
|
|
|
|
5 |
|
|
|
1,405 |
|
|
$ |
564,954 |
|
|
|
3.6 |
% |
Consolidated Rental Properties – Not Stabilized (A) |
|
|
1 |
|
|
|
421 |
|
|
$ |
124,000 |
|
|
|
3.9 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Price |
|
|
Disposition
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dispositions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Rental Properties |
|
|
|
|
(4 |
) |
|
|
(1,211 |
) |
|
$ |
(694,975 |
) |
|
|
(3.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completed Developments – Consolidated |
|
|
|
|
1 |
|
|
|
470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2021 |
|
|
310 |
|
|
|
80,407 |
|
|
|
|
|
|
|
|
|
Portfolio Rollforward 2021 ($ in thousands) |
||||||||||||||||||
|
|
|
|
Properties |
|
|
Apartment
|
|
|
Purchase
|
|
|
Acquisition
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2020 |
|
|
304 |
|
|
|
77,889 |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Rental Properties |
|
|
|
|
13 |
|
|
|
3,533 |
|
|
$ |
1,249,679 |
|
|
|
3.7 |
% |
Consolidated Rental Properties – Not Stabilized (A) |
|
|
4 |
|
|
|
1,214 |
|
|
$ |
459,700 |
|
|
|
4.0 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Price |
|
|
Disposition
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dispositions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Rental Properties |
|
|
|
|
(14 |
) |
|
|
(3,053 |
) |
|
$ |
(1,716,775 |
) |
|
|
(3.7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completed Developments – Consolidated |
|
|
|
|
3 |
|
|
|
824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2021 |
|
|
310 |
|
|
|
80,407 |
|
|
|
|
|
|
|
|
|
(A) |
The Company acquired four properties during the year ended December 31, 2021, including a property in the Dallas/Ft. Worth market in the fourth 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. |
Equity Residential |
||||||||||||||||||||||||||||||||||||||
Fourth Quarter 2021 vs. Fourth Quarter 2020 Same Store Results/Statistics Including 74,298 Same Store Apartment Units $ in thousands (except for Average Rental Rate) |
||||||||||||||||||||||||||||||||||||||
Fourth Quarter 2021 |
|
|
Fourth Quarter 2020 |
|
||||||||||||||||||||||||||||||||||
|
Residential |
|
|
%
|
|
|
Non-
|
|
|
%
|
|
|
Total |
|
|
%
|
|
|
|
Residential |
|
|
Non-
|
|
|
Total |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Revenues |
$ |
587,533 |
|
(1) |
4.3% |
|
|
$ |
23,968 |
|
(2) |
21.0% |
|
|
$ |
611,501 |
|
|
4.9% |
|
|
Revenues |
$ |
563,146 |
|
|
$ |
19,811 |
|
|
$ |
582,957 |
|
|||||
Expenses |
$ |
192,359 |
|
|
1.8% |
|
|
$ |
6,251 |
|
|
13.5% |
|
|
$ |
198,610 |
|
|
2.1% |
|
|
Expenses |
$ |
188,925 |
|
|
$ |
5,509 |
|
|
$ |
194,434 |
|
|||||
NOI |
$ |
395,174 |
|
|
5.6% |
|
|
$ |
17,717 |
|
|
23.9% |
|
|
$ |
412,891 |
|
|
6.3% |
|
|
NOI |
$ |
374,221 |
|
|
$ |
14,302 |
|
|
$ |
388,523 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Average Rental Rate |
$ |
2,729 |
|
|
1.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
$ |
2,685 |
|
|
|
|
|
|
|
|
|
|||
Physical Occupancy |
|
96.6 |
% |
|
2.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical Occupancy |
|
94.2 |
% |
|
|
|
|
|
|
|
|
|||
Turnover |
|
9.4 |
% |
|
(4.0%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover |
|
13.4 |
% |
|
|
|
|
|
|
|
|
|||
Fourth Quarter 2021 vs. Third Quarter 2021 Same Store Results/Statistics Including 75,206 Same Store Apartment Units $ in thousands (except for Average Rental Rate) |
||||||||||||||||||||||||||||||||||||||
Fourth Quarter 2021 |
|
|
Third Quarter 2021 |
|
||||||||||||||||||||||||||||||||||
|
Residential |
|
|
%
|
|
|
Non-
|
|
|
%
|
|
|
Total |
|
|
%
|
|
|
|
Residential |
|
|
Non-
|
|
|
Total |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Revenues |
$ |
592,709 |
|
(1) |
3.0% |
|
|
$ |
24,112 |
|
(2) |
6.4% |
|
|
$ |
616,821 |
|
|
3.1% |
|
|
Revenues |
$ |
575,689 |
|
|
$ |
22,670 |
|
|
$ |
598,359 |
|
|||||
Expenses |
$ |
194,200 |
|
|
(3.0%) |
|
|
$ |
6,290 |
|
|
5.5% |
|
|
$ |
200,490 |
|
|
(2.7%) |
|
|
Expenses |
$ |
200,116 |
|
|
$ |
5,964 |
|
|
$ |
206,080 |
|
|||||
NOI |
$ |
398,509 |
|
|
6.1% |
|
|
$ |
17,822 |
|
|
6.7% |
|
|
$ |
416,331 |
|
|
6.1% |
|
|
NOI |
$ |
375,573 |
|
|
$ |
16,706 |
|
|
$ |
392,279 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Average Rental Rate |
$ |
2,720 |
|
|
2.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
$ |
2,643 |
|
|
|
|
|
|
|
|
|
|||
Physical Occupancy |
|
96.6 |
% |
|
0.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical Occupancy |
|
96.6 |
% |
|
|
|
|
|
|
|
|
|||
Turnover |
|
9.4 |
% |
|
(4.4%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover |
|
13.8 |
% |
|
|
|
|
|
|
|
|
|||
2021 vs. 2020 Same Store Results/Statistics Including 74,077 Same Store Apartment Units $ in thousands (except for Average Rental Rate) |
||||||||||||||||||||||||||||||||||||||
2021 |
|
|
2020 |
|
||||||||||||||||||||||||||||||||||
|
Residential |
|
|
%
|
|
|
Non-
|
|
|
%
|
|
|
Total |
|
|
%
|
|
|
|
Residential |
|
|
Non-
|
|
|
Total |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Revenues |
$ |
2,253,068 |
|
(1) |
(4.6%) |
|
|
$ |
89,189 |
|
(2) |
40.1% |
|
|
$ |
2,342,257 |
|
|
(3.4%) |
|
|
Revenues |
$ |
2,361,359 |
|
|
$ |
63,666 |
|
|
$ |
2,425,025 |
|
|||||
Expenses |
$ |
779,729 |
|
|
2.8% |
|
|
$ |
24,266 |
|
|
9.7% |
|
|
$ |
803,995 |
|
|
3.0% |
|
|
Expenses |
$ |
758,257 |
|
|
$ |
22,124 |
|
|
$ |
780,381 |
|
|||||
NOI |
$ |
1,473,339 |
|
|
(8.1%) |
|
|
$ |
64,923 |
|
|
56.3% |
|
|
$ |
1,538,262 |
|
|
(6.5%) |
|
|
NOI |
$ |
1,603,102 |
|
|
$ |
41,542 |
|
|
$ |
1,644,644 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Average Rental Rate |
$ |
2,640 |
|
|
(5.6%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
$ |
2,797 |
|
|
|
|
|
|
|
|
|
|||
Physical Occupancy |
|
96.1 |
% |
|
1.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical Occupancy |
|
95.0 |
% |
|
|
|
|
|
|
|
|
|||
Turnover |
|
44.4 |
% |
|
(8.5%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover |
|
52.9 |
% |
|
|
|
|
|
|
|
|
(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 primarily driven by the following: |
|
|
• Fourth Quarter 2021 vs. Fourth Quarter 2020 – Higher parking income and lower bad debt. |
|
|
• Fourth Quarter 2021 vs. Third Quarter 2021 – Lower deferral/abatement of rents and higher parking income. |
|
|
• 2021 vs. 2020 – The write-off of Non-Residential straight-line lease receivables in 2020 and lower bad debt in 2021. |
Equity Residential |
||||||||||||||||||||||||
Same Store Residential Revenues – GAAP to Cash Basis (1) $ in thousands |
||||||||||||||||||||||||
|
Fourth Quarter 2021 vs. Fourth Quarter 2020 |
|
|
Fourth Quarter 2021 vs. Third Quarter 2021 |
|
|
2021 vs. 2020 |
|
||||||||||||||||
|
74,298 Same Store Apartment Units |
|
|
75,206 Same Store Apartment Units |
|
|
74,077 Same Store Apartment Units |
|
||||||||||||||||
|
Q4 2021 |
|
|
Q4 2020 |
|
|
Q4 2021 |
|
|
Q3 2021 |
|
|
2021 |
|
2020 |
|||||||||
Same Store Residential Revenues (GAAP Basis) |
$ |
587,533 |
|
|
$ |
563,146 |
|
|
$ |
592,709 |
|
|
$ |
575,689 |
|
|
$ |
2,253,068 |
|
|
$ |
2,361,359 |
|
|
Leasing Concessions amortized |
|
7,020 |
|
|
|
8,254 |
|
|
|
7,092 |
|
|
|
10,955 |
|
|
|
42,377 |
|
|
|
15,055 |
|
|
Leasing Concessions granted |
|
(339 |
) |
|
|
(16,630 |
) |
|
|
(352 |
) |
|
|
(2,221 |
) |
|
|
(27,530 |
) |
|
|
(33,085 |
) |
|
Same Store Residential Revenues with Leasing |
||||||||||||||||||||||||
Concessions on a cash basis |
$ |
594,214 |
|
|
$ |
554,770 |
|
|
$ |
599,449 |
|
|
$ |
584,423 |
|
|
$ |
2,267,915 |
|
|
$ |
2,343,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% change - GAAP revenue |
|
4.3 |
% |
|
|
|
|
|
|
3.0 |
% |
|
|
|
|
|
|
(4.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% change - cash revenue |
|
7.1 |
% |
|
|
|
|
|
|
2.6 |
% |
|
|
|
|
|
|
(3.2 |
%) |
|
|
|
|
(1) | See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail. |
|
Same Store Resident/Tenant Accounts Receivable Balances
Including 74,077 Same Store Apartment Units $ in thousands |
||||||||||||||||
|
Residential |
|
|
Non-Residential |
|
|||||||||||
Balance Sheet (Other assets): |
December 31, 2021 |
|
|
September 30, 2021 |
|
|
December 31, 2021 |
|
|
September 30, 2021 |
|
|||||
Resident/tenant accounts receivable balances |
$ |
37,163 |
|
|
$ |
42,067 |
|
|
$ |
3,192 |
|
|
$ |
4,064 |
|
|
Allowance for doubtful accounts |
|
(32,513 |
) |
|
|
(36,656 |
) |
|
|
(2,365 |
) |
|
|
(3,442 |
) |
|
Net receivable balances |
$ |
4,650 |
|
(1) |
$ |
5,411 |
|
|
$ |
827 |
|
|
$ |
622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-line receivable balances |
$ |
4,771 |
|
(2) |
$ |
11,438 |
|
|
$ |
12,658 |
|
|
$ |
12,698 |
|
(1) |
The Company held same store Residential security deposits approximating 48.5% of the net receivable balance at December 31, 2021. |
|
(2) |
Total same store Residential Leasing Concessions granted in the fourth quarter of 2021 were approximately $0.3 million. The straight-line receivable balance of $4.8 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in 2022. |
|
Same Store Residential Bad Debt Including 74,077 Same Store Apartment Units $ in thousands |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement (Rental income): |
|
Q4 2021 |
|
Q3 2021 |
|
Q4 2020 |
|
2021 |
|
2020 |
||||||||||
Bad Debt, Net (1) |
|
$ |
1,612 |
|
|
$ |
3,978 |
|
|
$ |
12,687 |
|
|
$ |
30,745 |
|
|
$ |
40,759 |
|
% of Same Store Residential Revenues |
|
|
0.3 |
% |
|
|
0.7 |
% |
|
|
2.3 |
% |
|
|
1.4 |
% |
|
|
1.7 |
% |
|
(1) |
Bad Debt, Net benefited from additional resident payments due to governmental rental assistance programs of approximately $16.3 million, $13.5 million and $34.7 million during the fourth quarter of 2021, third quarter of 2021 and the year ended December 31, 2021, respectively. Similar to prior quarters, the Company collected approximately 97% of its expected Residential revenues in the fourth quarter of 2021. |
Equity Residential
Fourth Quarter 2021 vs. Fourth Quarter 2020 Same Store Residential Results/Statistics by Market |
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Year's Quarter |
|
|||||||||||||||||||||
Markets/Metro Areas |
|
Apartment
|
|
|
Q4 2021
|
|
|
Q4 2021
|
|
|
Q4 2021
|
|
|
Q4 2021
|
|
|
Revenues |
|
|
Expenses |
|
|
NOI |
|
|
Average
|
|
|
Physical
|
|
|
Turnover |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles |
|
|
15,259 |
|
|
|
21.3 |
% |
|
$ |
2,673 |
|
|
|
96.9 |
% |
|
|
9.3 |
% |
|
|
11.1 |
% |
|
|
(1.0 |
%) |
|
|
17.0 |
% |
|
|
9.8 |
% |
|
|
1.1 |
% |
|
|
(4.3 |
%) |
Orange County |
|
|
4,028 |
|
|
|
5.7 |
% |
|
|
2,427 |
|
|
|
97.7 |
% |
|
|
7.4 |
% |
|
|
10.2 |
% |
|
|
0.7 |
% |
|
|
13.1 |
% |
|
|
9.2 |
% |
|
|
0.9 |
% |
|
|
(3.3 |
%) |
San Diego |
|
|
2,706 |
|
|
|
4.1 |
% |
|
|
2,598 |
|
|
|
97.2 |
% |
|
|
8.6 |
% |
|
|
9.4 |
% |
|
|
(0.4 |
%) |
|
|
12.5 |
% |
|
|
9.5 |
% |
|
|
(0.1 |
%) |
|
|
(2.8 |
%) |
Subtotal – Southern California |
|
|
21,993 |
|
|
|
31.1 |
% |
|
|
2,619 |
|
|
|
97.1 |
% |
|
|
8.9 |
% |
|
|
10.8 |
% |
|
|
(0.7 |
%) |
|
|
15.6 |
% |
|
|
9.7 |
% |
|
|
1.0 |
% |
|
|
(3.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco |
|
|
11,630 |
|
|
|
17.7 |
% |
|
|
2,946 |
|
|
|
96.4 |
% |
|
|
10.7 |
% |
|
|
(0.2 |
%) |
|
|
2.4 |
% |
|
|
(1.3 |
%) |
|
|
(4.4 |
%) |
|
|
4.1 |
% |
|
|
(5.4 |
%) |
Washington DC |
|
|
14,322 |
|
|
|
16.6 |
% |
|
|
2,348 |
|
|
|
97.0 |
% |
|
|
9.0 |
% |
|
|
0.0 |
% |
|
|
4.9 |
% |
|
|
(2.2 |
%) |
|
|
(1.7 |
%) |
|
|
1.6 |
% |
|
|
(3.8 |
%) |
New York |
|
|
9,343 |
|
|
|
12.5 |
% |
|
|
3,597 |
|
|
|
97.4 |
% |
|
|
6.9 |
% |
|
|
6.9 |
% |
|
|
2.3 |
% |
|
|
11.8 |
% |
|
|
(1.7 |
%) |
|
|
7.8 |
% |
|
|
(4.9 |
%) |
Seattle |
|
|
8,956 |
|
|
|
10.5 |
% |
|
|
2,340 |
|
|
|
95.0 |
% |
|
|
11.5 |
% |
|
|
(0.7 |
%) |
|
|
1.9 |
% |
|
|
(1.8 |
%) |
|
|
(1.2 |
%) |
|
|
0.5 |
% |
|
|
(2.6 |
%) |
Boston |
|
|
6,430 |
|
|
|
9.7 |
% |
|
|
2,976 |
|
|
|
95.8 |
% |
|
|
9.4 |
% |
|
|
2.7 |
% |
|
|
1.5 |
% |
|
|
3.2 |
% |
|
|
0.6 |
% |
|
|
1.9 |
% |
|
|
(3.5 |
%) |
Denver |
|
|
1,624 |
|
|
|
1.9 |
% |
|
|
2,170 |
|
|
|
96.5 |
% |
|
|
14.3 |
% |
|
|
10.0 |
% |
|
|
(4.4 |
%) |
|
|
16.0 |
% |
|
|
8.3 |
% |
|
|
1.4 |
% |
|
|
(1.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
74,298 |
|
|
|
100.0 |
% |
|
$ |
2,729 |
|
|
|
96.6 |
% |
|
|
9.4 |
% |
|
|
4.3 |
% |
(1) |
|
1.8 |
% |
|
|
5.6 |
% |
|
|
1.6 |
% |
|
|
2.4 |
% |
|
|
(4.0 |
%) |
(1) |
With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 7.1% in the fourth quarter of 2021 compared to the fourth 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 96.1% of total revenues for the year ended December 31, 2021. |
Equity Residential
Fourth Quarter 2021 vs. Third Quarter 2021 Same Store Residential Results/Statistics by Market |
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Quarter |
|
|||||||||||||||||||||
Markets/Metro Areas |
|
Apartment
|
|
|
Q4 2021
|
|
|
Q4 2021
|
|
|
Q4 2021
|
|
|
Q4 2021
|
|
|
Revenues |
|
|
Expenses |
|
|
NOI |
|
|
Average
|
|
|
Physical
|
|
|
Turnover |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles |
|
|
15,259 |
|
|
|
21.1 |
% |
|
$ |
2,673 |
|
|
|
96.9 |
% |
|
|
9.3 |
% |
|
|
5.2 |
% |
|
|
(4.0 |
%) |
|
|
9.4 |
% |
|
|
5.5 |
% |
|
|
(0.4 |
%) |
|
|
(2.4 |
%) |
Orange County |
|
|
4,028 |
|
|
|
5.7 |
% |
|
|
2,427 |
|
|
|
97.7 |
% |
|
|
7.4 |
% |
|
|
1.4 |
% |
|
|
(6.7 |
%) |
|
|
3.8 |
% |
|
|
1.9 |
% |
|
|
(0.4 |
%) |
|
|
(3.6 |
%) |
San Diego |
|
|
2,706 |
|
|
|
4.0 |
% |
|
|
2,598 |
|
|
|
97.2 |
% |
|
|
8.6 |
% |
|
|
1.1 |
% |
|
|
(5.5 |
%) |
|
|
3.1 |
% |
|
|
1.8 |
% |
|
|
(0.6 |
%) |
|
|
(5.4 |
%) |
Subtotal – Southern California |
|
|
21,993 |
|
|
|
30.8 |
% |
|
|
2,619 |
|
|
|
97.1 |
% |
|
|
8.9 |
% |
|
|
4.0 |
% |
|
|
(4.5 |
%) |
|
|
7.5 |
% |
|
|
4.4 |
% |
|
|
(0.4 |
%) |
|
|
(3.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco |
|
|
11,630 |
|
|
|
17.5 |
% |
|
|
2,946 |
|
|
|
96.4 |
% |
|
|
10.7 |
% |
|
|
2.6 |
% |
|
|
(3.1 |
%) |
|
|
5.2 |
% |
|
|
1.5 |
% |
|
|
1.1 |
% |
|
|
(3.6 |
%) |
Washington DC |
|
|
14,535 |
|
|
|
16.7 |
% |
|
|
2,343 |
|
|
|
97.0 |
% |
|
|
9.0 |
% |
|
|
0.9 |
% |
|
|
(4.2 |
%) |
|
|
3.6 |
% |
|
|
0.5 |
% |
|
|
0.4 |
% |
|
|
(5.7 |
%) |
New York |
|
|
9,343 |
|
|
|
12.4 |
% |
|
|
3,597 |
|
|
|
97.4 |
% |
|
|
6.9 |
% |
|
|
4.0 |
% |
|
|
1.4 |
% |
|
|
6.7 |
% |
|
|
3.3 |
% |
|
|
0.6 |
% |
|
|
(5.3 |
%) |
Seattle |
|
|
9,331 |
|
|
|
10.8 |
% |
|
|
2,326 |
|
|
|
95.0 |
% |
|
|
11.5 |
% |
|
|
2.4 |
% |
|
|
(5.3 |
%) |
|
|
6.1 |
% |
|
|
3.6 |
% |
|
|
(1.1 |
%) |
|
|
(2.9 |
%) |
Boston |
|
|
6,430 |
|
|
|
9.6 |
% |
|
|
2,976 |
|
|
|
95.8 |
% |
|
|
9.4 |
% |
|
|
3.3 |
% |
|
|
(4.3 |
%) |
|
|
7.1 |
% |
|
|
3.3 |
% |
|
|
0.0 |
% |
|
|
(7.6 |
%) |
Denver |
|
|
1,624 |
|
|
|
1.9 |
% |
|
|
2,170 |
|
|
|
96.5 |
% |
|
|
14.3 |
% |
|
|
3.4 |
% |
|
|
(11.6 |
%) |
|
|
9.7 |
% |
|
|
3.7 |
% |
|
|
(0.4 |
%) |
|
|
(4.1 |
%) |
Other Expansion Markets |
|
|
320 |
|
|
|
0.3 |
% |
|
|
1,906 |
|
|
|
96.5 |
% |
|
|
6.3 |
% |
|
|
(2.5 |
%) |
|
|
12.5 |
% |
|
|
(11.1 |
%) |
|
|
(2.1 |
%) |
|
|
(0.4 |
%) |
|
|
(7.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
75,206 |
|
|
|
100.0 |
% |
|
$ |
2,720 |
|
|
|
96.6 |
% |
|
|
9.4 |
% |
|
|
3.0 |
% |
(1) |
|
(3.0 |
%) |
|
|
6.1 |
% |
|
|
2.9 |
% |
|
|
0.0 |
% |
|
|
(4.4 |
%) |
(1) |
With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 2.6% in the fourth quarter of 2021 compared to the third 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 96.1% of total revenues for the year ended December 31, 2021. |
Equity Residential
2021 vs. 2020 Same Store Residential Results/Statistics by Market |
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Year |
|
|||||||||||||||||||||
Markets/Metro Areas |
|
Apartment
|
|
|
2021
|
|
|
2021
|
|
|
2021
|
|
|
2021
|
|
|
Revenues |
|
|
Expenses |
|
|
NOI |
|
|
Average
|
|
|
Physical
|
|
|
Turnover |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles |
|
|
15,259 |
|
|
|
20.5 |
% |
|
$ |
2,501 |
|
|
|
96.6 |
% |
|
|
41.5 |
% |
|
|
0.3 |
% |
|
|
0.9 |
% |
|
|
0.1 |
% |
|
|
(0.7 |
%) |
|
|
1.0 |
% |
|
|
(10.4 |
%) |
Orange County |
|
|
4,028 |
|
|
|
5.7 |
% |
|
|
2,318 |
|
|
|
97.7 |
% |
|
|
34.6 |
% |
|
|
4.0 |
% |
|
|
1.8 |
% |
|
|
4.6 |
% |
|
|
2.9 |
% |
|
|
1.0 |
% |
|
|
(10.7 |
%) |
San Diego |
|
|
2,706 |
|
|
|
4.1 |
% |
|
|
2,484 |
|
|
|
97.6 |
% |
|
|
43.1 |
% |
|
|
5.3 |
% |
|
|
1.2 |
% |
|
|
6.6 |
% |
|
|
4.6 |
% |
|
|
0.6 |
% |
|
|
(5.9 |
%) |
Subtotal – Southern California |
|
|
21,993 |
|
|
|
30.3 |
% |
|
|
2,465 |
|
|
|
96.9 |
% |
|
|
40.4 |
% |
|
|
1.5 |
% |
|
|
1.0 |
% |
|
|
1.8 |
% |
|
|
0.5 |
% |
|
|
0.9 |
% |
|
|
(9.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco |
|
|
11,630 |
|
|
|
18.0 |
% |
|
|
2,900 |
|
|
|
95.1 |
% |
|
|
48.2 |
% |
|
|
(10.8 |
%) |
|
|
3.4 |
% |
|
|
(15.9 |
%) |
|
|
(11.3 |
%) |
|
|
0.6 |
% |
|
|
(8.7 |
%) |
Washington DC |
|
|
14,322 |
|
|
|
17.5 |
% |
|
|
2,332 |
|
|
|
96.5 |
% |
|
|
45.3 |
% |
|
|
(3.5 |
%) |
|
|
4.2 |
% |
|
|
(6.9 |
%) |
|
|
(4.3 |
%) |
|
|
0.9 |
% |
|
|
(5.0 |
%) |
New York |
|
|
9,343 |
|
|
|
12.1 |
% |
|
|
3,497 |
|
|
|
95.2 |
% |
|
|
37.5 |
% |
|
|
(7.4 |
%) |
|
|
2.7 |
% |
|
|
(16.4 |
%) |
|
|
(9.6 |
%) |
|
|
2.4 |
% |
|
|
(13.8 |
%) |
Seattle |
|
|
8,819 |
|
|
|
10.6 |
% |
|
|
2,274 |
|
|
|
95.6 |
% |
|
|
50.6 |
% |
|
|
(6.9 |
%) |
|
|
4.1 |
% |
|
|
(11.3 |
%) |
|
|
(7.1 |
%) |
|
|
0.2 |
% |
|
|
(4.0 |
%) |
Boston |
|
|
6,346 |
|
|
|
9.6 |
% |
|
|
2,883 |
|
|
|
95.7 |
% |
|
|
47.0 |
% |
|
|
(5.4 |
%) |
|
|
3.4 |
% |
|
|
(9.1 |
%) |
|
|
(7.0 |
%) |
|
|
1.5 |
% |
|
|
(9.3 |
%) |
Denver |
|
|
1,624 |
|
|
|
1.9 |
% |
|
|
2,066 |
|
|
|
96.6 |
% |
|
|
60.2 |
% |
|
|
3.3 |
% |
|
|
2.0 |
% |
|
|
3.8 |
% |
|
|
1.4 |
% |
|
|
1.7 |
% |
|
|
(9.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
74,077 |
|
|
|
100.0 |
% |
|
$ |
2,640 |
|
|
|
96.1 |
% |
|
|
44.4 |
% |
|
|
(4.6 |
%) |
(1) |
|
2.8 |
% |
|
|
(8.1 |
%) |
|
|
(5.6 |
%) |
|
|
1.1 |
% |
|
|
(8.5 |
%) |
(1) |
With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 3.2% in the year ended December 31, 2021 compared to the year ended December 31, 2020. See page 12 for additional detail and reconciliations. |
|
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.1% of total revenues for the year ended December 31, 2021. |
Equity Residential
Same Store Residential Net Effective Lease Pricing Statistics For 74,077 Same Store Apartment Units |
||||||||||||||||||||||||
|
|
New Lease Change (1) |
|
|
Renewal Rate Achieved (1) |
|
|
Blended Rate (1) |
|
|||||||||||||||
Markets/Metro Areas |
|
Q4 2021 |
|
|
Q3 2021 |
|
|
Q4 2021 |
|
|
Q3 2021 |
|
|
Q4 2021 |
|
|
Q3 2021 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southern California |
|
|
13.4 |
% |
|
|
13.6 |
% |
|
|
7.1 |
% |
|
|
6.1 |
% |
|
|
9.4 |
% |
|
|
9.1 |
% |
San Francisco |
|
|
3.6 |
% |
|
|
3.0 |
% |
|
|
12.4 |
% |
|
|
6.0 |
% |
|
|
8.1 |
% |
|
|
4.5 |
% |
Washington DC |
|
|
6.0 |
% |
|
|
4.0 |
% |
|
|
6.8 |
% |
|
|
2.2 |
% |
|
|
6.5 |
% |
|
|
3.0 |
% |
New York |
|
|
20.2 |
% |
|
|
13.8 |
% |
|
|
14.5 |
% |
|
|
8.0 |
% |
|
|
16.6 |
% |
|
|
10.4 |
% |
Seattle |
|
|
11.0 |
% |
|
|
15.7 |
% |
|
|
16.9 |
% |
|
|
4.3 |
% |
|
|
14.1 |
% |
|
|
8.9 |
% |
Boston |
|
|
12.6 |
% |
|
|
13.3 |
% |
|
|
14.6 |
% |
|
|
6.4 |
% |
|
|
13.8 |
% |
|
|
9.7 |
% |
Denver |
|
|
12.4 |
% |
|
|
16.1 |
% |
|
|
12.8 |
% |
|
|
8.0 |
% |
|
|
12.6 |
% |
|
|
12.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
10.6 |
% |
|
|
10.1 |
% |
|
|
10.7 |
% |
|
|
5.7 |
% |
|
|
10.7 |
% |
|
|
7.6 |
% |
(1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions. See page 3 for January 2022 preliminary data. |
Equity Residential |
||||||||||||||||||||
Fourth Quarter 2021 vs. Fourth Quarter 2020 Total Same Store Operating Expenses Including 74,298 Same Store Apartment Units $ in thousands |
||||||||||||||||||||
|
|
Q4 2021 |
|
|
Q4 2020 |
|
|
$
|
|
|
%
|
|
|
% of
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate taxes |
|
$ |
86,597 |
|
|
$ |
85,588 |
|
|
$ |
1,009 |
|
|
|
1.2 |
% |
|
|
43.6 |
% |
On-site payroll |
|
|
38,395 |
|
|
|
39,281 |
|
|
|
(886 |
) |
|
|
(2.3 |
%) |
|
|
19.3 |
% |
Utilities |
|
|
29,574 |
|
|
|
26,222 |
|
|
|
3,352 |
|
|
|
12.8 |
% |
|
|
14.9 |
% |
Repairs and maintenance |
|
|
23,386 |
|
|
|
24,124 |
|
|
|
(738 |
) |
|
|
(3.1 |
%) |
|
|
11.8 |
% |
Insurance |
|
|
6,645 |
|
|
|
6,037 |
|
|
|
608 |
|
|
|
10.1 |
% |
|
|
3.3 |
% |
Leasing and advertising |
|
|
2,731 |
|
|
|
3,069 |
|
|
|
(338 |
) |
|
|
(11.0 |
%) |
|
|
1.4 |
% |
Other on-site operating expenses |
|
|
11,282 |
|
|
|
10,113 |
|
|
|
1,169 |
|
|
|
11.6 |
% |
|
|
5.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Same Store Operating Expenses (2) (includes Residential and Non-Residential) |
|
$ |
198,610 |
|
|
$ |
194,434 |
|
|
$ |
4,176 |
|
|
|
2.1 |
% |
|
|
100.0 |
% |
2021 vs. 2020 Total Same Store Operating Expenses Including 74,077 Same Store Apartment Units $ in thousands |
||||||||||||||||||||
|
|
2021 |
|
|
2020 |
|
|
$
|
|
|
%
|
|
|
% of
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate taxes |
|
$ |
347,339 |
|
|
$ |
342,090 |
|
|
$ |
5,249 |
|
|
|
1.5 |
% |
|
|
43.2 |
% |
On-site payroll |
|
|
160,798 |
|
|
|
162,387 |
|
|
|
(1,589 |
) |
|
|
(1.0 |
%) |
|
|
20.0 |
% |
Utilities |
|
|
113,821 |
|
|
|
103,612 |
|
|
|
10,209 |
|
|
|
9.9 |
% |
|
|
14.2 |
% |
Repairs and maintenance |
|
|
99,472 |
|
|
|
94,239 |
|
|
|
5,233 |
|
|
|
5.6 |
% |
|
|
12.4 |
% |
Insurance |
|
|
26,513 |
|
|
|
24,086 |
|
|
|
2,427 |
|
|
|
10.1 |
% |
|
|
3.3 |
% |
Leasing and advertising |
|
|
10,647 |
|
|
|
10,369 |
|
|
|
278 |
|
|
|
2.7 |
% |
|
|
1.3 |
% |
Other on-site operating expenses |
|
|
45,405 |
|
|
|
43,598 |
|
|
|
1,807 |
|
|
|
4.1 |
% |
|
|
5.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Same Store Operating Expenses (2) (includes Residential and Non-Residential) |
|
$ |
803,995 |
|
|
$ |
780,381 |
|
|
$ |
23,614 |
|
|
|
3.0 |
% |
|
|
100.0 |
% |
(1) |
The quarter-over-quarter and year-over-year changes were primarily driven by the following factors: |
|
|
|
|
|
Real estate taxes – Increase due to modest rate growth, partially offset by reduced assessed values in certain locations. |
|
|
|
|
|
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 – Quarter-over-quarter decrease due primarily to significantly lower resident turnover than in the prior year. Year-over-year increase primarily driven by low comparable period expense growth due to the pandemic along with increases in minimum wage on contract services and maintenance repairs 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 December 31, 2021 ($ in thousands) |
||||||||||||||||
|
|
Debt
|
|
|
% of Total |
|
|
Weighted
|
|
|
Weighted
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured |
|
$ |
2,191,201 |
|
|
|
26.3 |
% |
|
|
3.18 |
% |
|
|
4.8 |
|
Unsecured |
|
|
6,150,252 |
|
|
|
73.7 |
% |
|
|
3.39 |
% |
|
|
9.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
8,341,453 |
|
|
|
100.0 |
% |
|
|
3.33 |
% |
|
|
8.2 |
|
Fixed Rate Debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured – Conventional |
|
$ |
1,896,472 |
|
|
|
22.8 |
% |
|
|
3.66 |
% |
|
|
4.0 |
|
Unsecured – Public |
|
|
5,835,222 |
|
|
|
69.9 |
% |
|
|
3.65 |
% |
|
|
10.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Rate Debt |
|
|
7,731,694 |
|
|
|
92.7 |
% |
|
|
3.65 |
% |
|
|
8.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floating Rate Debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured – Conventional |
|
|
59,890 |
|
|
|
0.7 |
% |
|
|
2.51 |
% |
|
|
0.5 |
|
Secured – Tax Exempt |
|
|
234,839 |
|
|
|
2.8 |
% |
|
|
0.48 |
% |
|
|
12.5 |
|
Unsecured – Revolving Credit Facility |
|
|