EX-99.1 2 a1q14pressrelease.htm EX-99.1 1Q'14 Press Release
                                            

Exhibit 99.1
                    
NEWS RELEASE - FOR IMMEDIATE RELEASE    

APRIL 30, 2014

Equity Residential Reports First Quarter 2014 Results
11% Increase in Normalized FFO per Share

Chicago, IL - April 30, 2014 - Equity Residential (NYSE: EQR) today reported results for the quarter ended March 31, 2014. All per share results are reported as available to common shares on a diluted basis.

“As expected, fundamentals across our core markets, with the exception of Washington DC, remain favorable with continued strong demand and manageable new supply,” said David J. Neithercut, Equity Residential’s President and CEO. “As we approach our primary leasing season with occupancy of 95.9% and renewal rates achieved to date of 5.3%, we are well positioned for yet another year of strong revenue growth.”

First Quarter 2014
FFO (Funds from Operations), as defined by the National Association of Real Estate Investment Trusts (NAREIT), for the first quarter of 2014 was $0.71 per share compared to $0.22 per share in the first quarter of 2013. The difference is due primarily to the expenses and prepayment penalties the company incurred in the first quarter of 2013 in connection with the Archstone acquisition, along with the items described below.

For the first quarter of 2014, the company reported Normalized FFO of $0.71 per share compared to $0.64 per share in the same period of 2013. The following items impacted Normalized FFO per share in the quarter:

the positive impact of approximately $0.04 per share from higher same store net operating income (NOI) and approximately $0.01 per share from NOI from non-same store properties currently in lease up; and

the positive impact of approximately $0.02 per share from lower total interest expense.

Normalized FFO begins with FFO and eliminates certain items that by their nature are not comparable from period to period or that tend to obscure the company’s actual operating performance. A reconciliation and definition of Normalized FFO are provided on pages 23 and 25 of this release and the company has included guidance for Normalized FFO on page 24 of this release.







1

                                            

For the first quarter of 2014, the company reported earnings of $0.22 per share compared to $3.01 per share in the first quarter of 2013. The difference is due primarily to approximately $1.2 billion in higher gains on property sales in the first quarter of 2013, partially offset by higher depreciation expense in the first quarter of 2013 as a result of the Archstone acquisition as well as the expenses and prepayment penalties incurred in connection with the Archstone acquisition.

Same Store Results
The company’s same store results include 18,465 stabilized apartment units acquired in the Archstone acquisition that are owned and managed by the company.

On a same store first quarter to first quarter comparison, which includes 100,984 apartment units, revenues increased 4.0%, expenses increased 3.2% and NOI increased 4.4%.

Investment Activity
During the first quarter of 2014, the company acquired a 430-unit apartment property in Los Angeles for a purchase price of approximately $143.0 million and a capitalization (cap) rate of 4.9%. Also during the quarter, the company acquired additional development rights at one of its existing land sites in Manhattan for approximately $5.5 million.

The company sold no properties or land parcels during the first quarter of 2014.

During the first quarter of 2014, the company completed construction on five development projects, consisting of 1,290 apartment units, at a total development cost of approximately $368.3 million. Two of these properties are located in Seattle and one each in Southern California, South Florida and Washington, DC.
 
Also during the quarter, the company started construction on three development projects, which will consist of a total of 1,145 apartment units, at a total development cost of approximately $614.3 million. Two of these properties are located in San Francisco and one in Southern California.
 
Second Quarter 2014 Guidance
The company has established a Normalized FFO guidance range of $0.74 to $0.78 per share for the second quarter of 2014. The difference between the company’s first quarter Normalized FFO of $0.71 per share and the midpoint of the second quarter guidance range of $0.76 per share is due primarily to:

the positive impact of approximately $0.05 per share from higher NOI from same store properties and properties in lease up;

the positive impact of approximately $0.01 per share from other items including lower general and administrative expenses; and

the negative impact of approximately $0.01 per share from higher total interest expense.




2

                                            

Second Quarter 2014 Earnings and Conference Call
Equity Residential expects to announce second quarter 2014 results on Tuesday, July 29, 2014 and host a conference call to discuss those results at 10:00 a.m. CT on Wednesday, July 30, 2014.

Equity Residential is an S&P 500 company focused on the acquisition, development and management of high quality apartment properties in top U.S. growth markets. Equity Residential owns or has investments in 396 properties consisting of 111,537 apartment units. For more information on Equity Residential, please visit our website at www.equityapartments.com.


Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential’s management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, competition and local government regulation. 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, Thursday, May 1, at 10:00 a.m. Central. Please visit the Investor section of the company’s web site at www.equityapartments.com for the link. A replay of the web cast will be available for two weeks at this site.


3

                                            

Equity Residential
Consolidated Statements of Operations
(Amounts in thousands except per share data)
(Unaudited)
 
 
Quarter Ended March 31,
 
 
2014
 
2013
REVENUES
 
 
 
 
Rental income
 
$
630,725

 
$
502,562

Fee and asset management
 
2,717

 
2,160

Total revenues
 
633,442

 
504,722

 
 
 
 
 
EXPENSES
 
 
 
 
Property and maintenance
 
125,573

 
98,529

Real estate taxes and insurance
 
82,094

 
65,095

Property management
 
22,118

 
22,489

Fee and asset management
 
1,662

 
1,646

Depreciation
 
185,167

 
196,222

General and administrative
 
17,576

 
16,495

Total expenses
 
434,190

 
400,476

 
 
 
 
 
Operating income
 
199,252

 
104,246

 
 
 
 
 
Interest and other income
 
605

 
320

Other expenses
 
(657
)
 
(21,719
)
Interest:
 
 
 
 
Expense incurred, net
 
(113,049
)
 
(194,467
)
Amortization of deferred financing costs
 
(2,792
)
 
(6,948
)
Income (loss) before income and other taxes, (loss) from investments in unconsolidated
entities, net (loss) on sales of land parcels and discontinued operations
 
83,359

 
(118,568
)
Income and other tax (expense) benefit
 
(222
)
 
(405
)
(Loss) from investments in unconsolidated entities
 
(1,409
)
 
(46,366
)
Net (loss) on sales of land parcels
 
(30
)
 

Income (loss) from continuing operations
 
81,698

 
(165,339
)
Discontinued operations, net
 
1,034

 
1,226,373

Net income
 
82,732

 
1,061,034

Net (income) attributable to Noncontrolling Interests:
 
 
 
 
Operating Partnership
 
(3,093
)
 
(43,323
)
Partially Owned Properties
 
(504
)
 
(25
)
Net income attributable to controlling interests
 
79,135

 
1,017,686

Preferred distributions
 
(1,036
)
 
(1,036
)
Net income available to Common Shares
 
$
78,099

 
$
1,016,650

 
 
 
 
 
Earnings per share – basic:
 
 
 
 
Income (loss) from continuing operations available to Common Shares
 
$
0.21

 
$
(0.47
)
Net income available to Common Shares
 
$
0.22

 
$
3.01

Weighted average Common Shares outstanding
 
360,470

 
337,532

 
 
 
 
 
Earnings per share – diluted:
 
 
 
 
Income (loss) from continuing operations available to Common Shares
 
$
0.21

 
$
(0.47
)
Net income available to Common Shares
 
$
0.22

 
$
3.01

Weighted average Common Shares outstanding
 
376,384

 
337,532

 
 
 
 
 
Distributions declared per Common Share outstanding
 
$
0.50

 
$
0.40








4

                                            

Equity Residential
Consolidated Statements of Funds From Operations and Normalized Funds From Operations
(Amounts in thousands except per share data)
(Unaudited)
 
 
 
Quarter Ended March 31,
 
 
 
2014
 
2013
Net income
 
$
82,732

 
$
1,061,034

Net (income) attributable to Noncontrolling Interests –
 
 
 
 
Partially Owned Properties
 
(504
)
 
(25
)
Preferred distributions
 
(1,036
)
 
(1,036
)
Net income available to Common Shares and Units
 
81,192

 
1,059,973

 
 
 
 
 
Adjustments:
 
 
 
 
Depreciation
 
185,167

 
196,222

Depreciation – Non-real estate additions
 
(1,188
)
 
(1,216
)
Depreciation – Partially Owned Properties
 
(1,068
)
 
(1,275
)
Depreciation – Unconsolidated Properties
 
1,603

 
260

Discontinued operations:
 
 
 
 
Depreciation
 

 
23,816

Net (gain) on sales of discontinued operations
 
(71
)
 
(1,198,922
)
Gain on sale of Equity Corporate Housing (ECH)
 

 
250

FFO available to Common Shares and Units (1) (3) (4)
 
265,635

 
79,108

 
 
 
 
 
Adjustments (see page 23 for additional detail):
 
 
 
 
Asset impairment and valuation allowances
 

 

Property acquisition costs and write-off of pursuit costs
 
474

 
67,668

Debt extinguishment (gains) losses, including prepayment penalties, preferred share
 
 
 
 
    redemptions and non-cash convertible debt discounts
 

 
79,643

(Gains) losses on sales of non-operating assets, net of income and other tax expense
 
 
 
 
    (benefit)
 
9

 
(250
)
Other miscellaneous non-comparable items
 
(463
)
 

Normalized FFO available to Common Shares and Units (2) (3) (4)
 
$
265,655

 
$
226,169

 
 
 
 
 
 
FFO (1) (3)
 
$
266,671

 
$
80,144

Preferred distributions
 
(1,036
)
 
(1,036
)
FFO available to Common Shares and Units - basic and diluted (1) (3) (4)
 
$
265,635

 
$
79,108

FFO per share and Unit - basic
 
$
0.71

 
$
0.23

FFO per share and Unit - diluted
 
$
0.71

 
$
0.22

 
 
 
 
 
 
Normalized FFO (2) (3)
 
$
266,691

 
$
227,205

Preferred distributions
 
(1,036
)
 
(1,036
)
Normalized FFO available to Common Shares and Units - basic and diluted (2) (3) (4)
 
$
265,655

 
$
226,169

Normalized FFO per share and Unit - basic
 
$
0.71

 
$
0.64

Normalized FFO per share and Unit - diluted
 
$
0.71

 
$
0.64

 
 
 
 
 
 
Weighted average Common Shares and Units outstanding - basic
 
374,201

 
351,255

Weighted average Common Shares and Units outstanding - diluted
 
376,384

 
353,656

 
 
 
 
 
 
Note:
See page 23 for additional detail regarding the adjustments from FFO to Normalized FFO. See page 25 for the definitions, the footnotes referenced above and the reconciliations of EPS to FFO and Normalized FFO.








5

                                            

Equity Residential
Consolidated Balance Sheets
(Amounts in thousands except for share amounts)
(Unaudited)
 
 
March 31,
2014
 
December 31,
2013
ASSETS
 
 
 
 
Investment in real estate
 
 
 
 
Land
 
$
6,281,124

 
$
6,192,512

Depreciable property
 
19,623,472

 
19,226,047

Projects under development
 
865,177

 
988,867

Land held for development
 
295,357

 
393,522

Investment in real estate
 
27,065,130

 
26,800,948

Accumulated depreciation
 
(4,992,877
)
 
(4,807,709
)
Investment in real estate, net
 
22,072,253

 
21,993,239

Cash and cash equivalents
 
37,209

 
53,534

Investments in unconsolidated entities
 
205,068

 
178,526

Deposits – restricted
 
91,081

 
103,567

Escrow deposits – mortgage
 
43,995

 
42,636

Deferred financing costs, net
 
55,754

 
58,486

Other assets
 
384,271

 
404,557

Total assets
 
$
22,889,631

 
$
22,834,545

 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
Liabilities:
 
 
 
 
Mortgage notes payable
 
$
5,167,626

 
$
5,174,166

Notes, net
 
5,477,656

 
5,477,088

Lines of credit
 
298,000

 
115,000

Accounts payable and accrued expenses
 
161,838

 
118,791

Accrued interest payable
 
78,140

 
78,309

Other liabilities
 
321,043

 
347,748

Security deposits
 
72,735

 
71,592

Distributions payable
 
187,759

 
243,511

Total liabilities
 
11,764,797

 
11,626,205

 
 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
 
 
Redeemable Noncontrolling Interests – Operating Partnership
 
405,276

 
363,144

Equity:
 
 
 
 
Shareholders’ equity:
 
 
 
 
Preferred Shares of beneficial interest, $0.01 par value;
100,000,000 shares authorized; 1,000,000 shares issued and
outstanding as of March 31, 2014 and December 31, 2013
 
50,000

 
50,000

Common Shares of beneficial interest, $0.01 par value;
1,000,000,000 shares authorized; 361,148,189 shares issued and
outstanding as of March 31, 2014 and 360,479,260 shares
issued and outstanding as of December 31, 2013
 
3,611

 
3,605

Paid in capital
 
8,541,046

 
8,561,500

Retained earnings
 
1,944,798

 
2,047,258

Accumulated other comprehensive (loss)
 
(162,894
)
 
(155,162
)
Total shareholders’ equity
 
10,376,561

 
10,507,201

Noncontrolling Interests:
 
 
 
 
Operating Partnership
 
215,339

 
211,412

Partially Owned Properties
 
127,658

 
126,583

Total Noncontrolling Interests
 
342,997

 
337,995

Total equity
 
10,719,558

 
10,845,196

Total liabilities and equity
 
$
22,889,631

 
$
22,834,545


6

                                            

Equity Residential
Portfolio Summary
As of March 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
% of
 
Average
 
 
 
 
Apartment
 
Stabilized
 
Rental
Markets/Metro Areas
 
Properties
 
Units
 
NOI (1)
 
Rate (2)
 
 
 
 
 
 
 
 
 
Core:
 
 
 
 
 
 
 
 
Washington DC
 
57

 
18,652

 
18.6
%
 
$
2,222

New York
 
38

 
10,330

 
16.7
%
 
3,771

San Francisco
 
51

 
13,208

 
13.0
%
 
2,281

Los Angeles
 
59

 
12,670

 
12.1
%
 
2,125

Boston
 
34

 
7,816

 
10.1
%
 
2,806

South Florida
 
36

 
11,731

 
7.4
%
 
1,586

Seattle
 
40

 
8,116

 
6.7
%
 
1,833

Denver
 
19

 
6,935

 
4.4
%
 
1,352

San Diego
 
13

 
3,505

 
3.1
%
 
1,938

Orange County, CA
 
11

 
3,490

 
2.9
%
 
1,738

Subtotal – Core
 
358

 
96,453

 
95.0
%
 
2,231

 
 
 
 
 
 
 
 
 
Non-Core:
 
 
 
 
 
 
 
 
Inland Empire, CA
 
10

 
3,081

 
2.1
%
 
1,530

Orlando
 
10

 
3,383

 
1.7
%
 
1,143

All Other Markets
 
16

 
3,561

 
1.2
%
 
1,152

Subtotal – Non-Core
 
36

 
10,025

 
5.0
%
 
1,265

Total
 
394

 
106,478

 
100.0
%
 
2,138

 
 
 
 
 
 
 
 
 
Military Housing
 
2

 
5,059

 

 

 
 
 
 
 
 
 
 
 
Grand Total
 
396

 
111,537

 
100.0
%
 
$
2,138

 
 
 
 
 
 
 
 
 
Note: Projects under development are not included in the Portfolio Summary until construction has been completed.
 
 
 
 
 
 
 
 
 
(1) % of Stabilized NOI includes budgeted 2014 NOI for stabilized properties and projected annual NOI at stabilization (defined as having achieved 90% occupancy for three consecutive months) for properties that are in lease-up.
 
 
 
 
 
 
 
 
 
(2) Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment units for the last month of the period presented.



1st Quarter 2014 Earnings Release
 
7

                                            

Equity Residential
 
 
 
 
 
 
 
 
 
Portfolio as of March 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Properties
 
Apartment
Units
 
 
 
 
 
 
 
 
 
 
 
 
Wholly Owned Properties
 
367

 
99,936

 
 
 
Master-Leased Properties - Consolidated
 
3

 
853

 
 
 
Partially Owned Properties - Consolidated
 
20

 
4,020

 
 
 
Partially Owned Properties - Unconsolidated
 
4

 
1,669

 
 
 
Military Housing
 
2

 
5,059

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
396

 
111,537

 
 

______________________________________________________________________________________________________

Portfolio Rollforward Q1 2014
($ in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Properties
 
Apartment
Units
 
Purchase/
(Sale) Price
 
Cap Rate
 
 
 
 
 
 
 
 
 
 
 
 
12/31/2013
390

 
109,855

 
 
 
 
Acquisitions:
 
 
 
 
 
 
 
Rental Properties - Consolidated
1

 
430

 
$
143,000

 
4.9
%
Land Parcel - Consolidated

 

 
$
5,500

 
 
Completed Developments - Consolidated
5

 
1,290

 
 
 
 
Configuration Changes

 
(38
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3/31/2014
396

 
111,537

 
 
 
 



1st Quarter 2014 Earnings Release
 
8

                                            

Equity Residential
 
 
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2014 vs. First Quarter 2013
Same Store Results/Statistics for 100,984 Same Store Apartment Units
$ in thousands (except for Average Rental Rate)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Results
 
Statistics
 
 
 
 
 
 
 
 
Average
Rental
Rate (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Description
 
Revenues
 
Expenses
 
NOI (1)
 
 
Occupancy
 
Turnover
 
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2014
 
$
613,878

 
$
218,239

 
$
395,639

 
$
2,133

 
95.1
%
 
11.3
%
Q1 2013
 
$
590,452

 
$
211,485

 
$
378,967

 
$
2,053

 
95.0
%
 
12.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
$
23,426

 
$
6,754

 
$
16,672

 
$
80

 
0.1
%
 
(0.8
%)
 
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
4.0
%
 
3.2
%
 
4.4
%
 
3.9
%
 
 
 
 
_______________________________________________________________________________________________________

First Quarter 2014 vs. Fourth Quarter 2013
Same Store Results/Statistics for 101,494 Same Store Apartment Units
$ in thousands (except for Average Rental Rate)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Results
 
Statistics
 
 
 
 
 
 
 
 
Average
Rental
Rate (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Description
 
Revenues
 
Expenses
 
NOI (1)
 
 
Occupancy
 
Turnover
 
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2014
 
$
616,874

 
$
219,200

 
$
397,674

 
$
2,132

 
95.1
%
 
11.3
%
Q4 2013
 
$
613,776

 
$
202,649

 
$
411,127

 
$
2,116

 
95.3
%
 
12.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
$
3,098

 
$
16,551

 
$
(13,453
)
 
$
16

 
(0.2
%)
 
(0.9
%)
 
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
0.5
%
 
8.2
%
 
(3.3
%)
 
0.8
%
 
 
 
 


Note: Same store results/statistics include 18,465 stabilized apartment units acquired in the Archstone acquisition that are owned and managed by the Company.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
The Company's primary financial measure for evaluating each of its apartment communities is net operating income ("NOI"). NOI represents rental income less property and maintenance expense, real estate tax and insurance expense and property management expense. The Company believes that NOI is helpful to investors as a supplemental measure of its operating performance because it is a direct measure of the actual operating results of the Company's apartment communities. See page 25 for reconciliations from operating income.
 
 
(2)
Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment units for the period.


1st Quarter 2014 Earnings Release
 
9

                                            

Equity Residential
First Quarter 2014 vs. First Quarter 2013
Same Store Results/Statistics by Market
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) from Prior Year's Quarter
 
 
 
 
Q1 2014
% of
Actual
NOI
 
Q1 2014
Average
Rental
Rate (1)
 
Q1 2014
Weighted
Average
Occupancy %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
Rental
Rate (1)
 
 
 
 
Apartment
Units
 
 
 
 
 
 
 
 
 
 
 
 
Markets/Metro Areas
 
 
 
 
 
 Revenues
 
Expenses
 
 NOI
 
 
Occupancy
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Washington DC
 
17,553

 
18.5
%
 
$
2,219

 
94.5
%
 
(0.5
%)
 
4.2
%
 
(2.8
%)
 
(0.3
%)
 
(0.3
%)
New York
 
10,330

 
16.4
%
 
3,762

 
95.6
%
 
3.0
%
 
7.2
%
 
0.1
%
 
2.8
%
 
0.2
%
San Francisco
 
12,764

 
13.8
%
 
2,238

 
94.8
%
 
8.4
%
 
(5.3
%)
 
16.7
%
 
8.0
%
 
0.3
%
Los Angeles
 
11,139

 
10.9
%
 
2,076

 
95.2
%
 
4.6
%
 
(1.0
%)
 
7.9
%
 
4.6
%
 
(0.1
%)
Boston (2)
 
7,722

 
10.1
%
 
2,812

 
95.1
%
 
4.8
%
 
9.6
%
 
2.3
%
 
3.8
%
 
0.9
%
South Florida
 
10,834

 
7.6
%
 
1,564

 
95.3
%
 
4.8
%
 
3.1
%
 
5.8
%
 
4.5
%
 
0.1
%
Seattle
 
7,411

 
6.3
%
 
1,786

 
95.0
%
 
6.7
%
 
4.3
%
 
7.9
%
 
6.4
%
 
0.2
%
Denver
 
6,935

 
4.8
%
 
1,344

 
95.2
%
 
6.6
%
 
3.2
%
 
7.9
%
 
7.1
%
 
(0.5
%)
San Diego
 
3,505

 
3.3
%
 
1,926

 
95.0
%
 
4.4
%
 
2.5
%
 
5.4
%
 
3.8
%
 
0.6
%
Orange County, CA
 
3,490

 
3.1
%
 
1,744

 
95.1
%
 
4.5
%
 
(2.8
%)
 
7.8
%
 
4.8
%
 
(0.3
%)
Subtotal – Core
 
91,683

 
94.8
%
 
2,221

 
95.0
%
 
4.0
%
 
3.1
%
 
4.5
%
 
3.9
%
 
0.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Core:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inland Empire, CA
 
3,081

 
2.3
%
 
1,536

 
95.5
%
 
4.5
%
 
5.8
%
 
3.8
%
 
3.4
%
 
0.9
%
Orlando
 
3,383

 
1.8
%
 
1,141

 
94.8
%
 
1.8
%
 
0.9
%
 
2.3
%
 
3.3
%
 
(1.4
%)
All Other Markets
 
2,837

 
1.1
%
 
1,124

 
96.0
%
 
2.8
%
 
8.3
%
 
(2.7
%)
 
1.5
%
 
1.2
%
Subtotal – Non-Core
 
9,301

 
5.2
%
 
1,267

 
95.4
%
 
3.1
%
 
5.1
%
 
1.9
%
 
2.9
%
 
0.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
100,984

 
100.0
%
 
$
2,133

 
95.1
%
 
4.0
%
 
3.2
%
 
4.4
%
 
3.9
%
 
0.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: Same store results/statistics include 18,465 stabilized apartment units acquired in the Archstone acquisition that are owned and managed by the Company.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment units for the period.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2) Quarter over quarter same store revenues in Boston were positively impacted by non-residential related income. Residential-only same store revenues increased in Boston 3.6% quarter over quarter.




1st Quarter 2014 Earnings Release
 
10

                                            

Equity Residential
First Quarter 2014 vs. Fourth Quarter 2013
Same Store Results/Statistics by Market
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) from Prior Quarter
 
 
 
 
Q1 2014
% of
Actual
NOI
 
Q1 2014
Average
Rental
Rate (1)
 
Q1 2014
Weighted
Average
Occupancy %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
Apartment
 
 
 
 
 
 
 
 
 
 
Rental
 
 
Markets/Metro Areas
 
Units
 
 
 
 
 Revenues
 
Expenses
 
 NOI
 
Rate (1)
 
Occupancy
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Washington DC
 
17,741

 
18.6
%
 
$
2,223

 
94.5
%
 
(0.7
%)
 
12.7
%
 
(6.4
%)
 
(0.2
%)
 
(0.5
%)
New York
 
10,330

 
16.3
%
 
3,762

 
95.6
%
 
0.6
%
 
14.4
%
 
(7.3
%)
 
1.1
%
 
(0.4
%)
San Francisco
 
12,764

 
13.7
%
 
2,238

 
94.8
%
 
1.2
%
 
0.6
%
 
1.5
%
 
1.8
%
 
(0.6
%)
Los Angeles
 
11,139

 
10.8
%
 
2,076

 
95.2
%
 
1.0
%
 
2.5
%
 
0.2
%
 
0.9
%
 
(0.1
%)
Boston (2)
 
7,722

 
10.0
%
 
2,812

 
95.1
%
 
(0.5
%)
 
17.4
%
 
(8.3
%)
 
0.2
%
 
(0.7
%)
South Florida
 
10,834

 
7.6
%
 
1,564

 
95.3
%
 
1.9
%
 
2.9
%
 
1.4
%
 
1.9
%
 
0.0
%
Seattle
 
7,733

 
6.6
%
 
1,785

 
95.0
%
 
1.3
%
 
5.9
%
 
(0.9
%)
 
1.1
%
 
0.3
%
Denver
 
6,935

 
4.8
%
 
1,344

 
95.2
%
 
1.1
%
 
(0.3
%)
 
1.6
%
 
1.1
%
 
(0.1
%)
San Diego
 
3,505

 
3.3
%
 
1,926

 
95.0
%
 
(0.3
%)
 
0.2
%
 
(0.5
%)
 
0.5
%
 
(0.7
%)
Orange County, CA
 
3,490

 
3.1
%
 
1,744

 
95.1
%
 
0.2
%
 
2.6
%
 
(0.7
%)
 
0.9
%
 
(0.7
%)
Subtotal – Core
 
92,193

 
94.8
%
 
2,220

 
95.0
%
 
0.5
%
 
8.1
%
 
(3.2
%)
 
0.8
%
 
(0.3
%)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Core:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inland Empire, CA
 
3,081

 
2.3
%
 
1,536

 
95.5
%
 
0.9
%
 
(0.4
%)
 
1.5
%
 
1.3
%
 
(0.3
%)
Orlando
 
3,383

 
1.8
%
 
1,141

 
94.8
%
 
0.3
%
 
6.9
%
 
(3.2
%)
 
0.3
%
 
0.0
%
All Other Markets
 
2,837

 
1.1
%
 
1,124

 
96.0
%
 
0.9
%
 
22.8
%
 
(15.5
%)
 
0.1
%
 
0.8
%
Subtotal – Non-Core
 
9,301

 
5.2
%
 
1,267

 
95.4
%
 
0.7
%
 
9.4
%
 
(4.2
%)
 
0.6
%
 
0.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
101,494

 
100.0
%
 
$
2,132

 
95.1
%
 
0.5
%
 
8.2
%
 
(3.3
%)
 
0.8
%
 
(0.2
%)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: Same store results/statistics include 18,465 stabilized apartment units acquired in the Archstone acquisition that are owned and managed by the Company.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment units for the period.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2) Sequential same store revenues in Boston were positively impacted by non-residential related income. Residential-only same store revenues decreased in Boston 1.2% sequentially.



1st Quarter 2014 Earnings Release
 
11

                                            

Equity Residential
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2014 vs. First Quarter 2013
Same Store Operating Expenses for 100,984 Same Store Apartment Units
$ in thousands
 
 
 
 
 
 
 
 
 
 
% of Actual
Q1 2014
Operating
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Actual
Q1 2014
 
Actual
Q1 2013
 
$
Change
 
%
Change
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate taxes
$
72,828

 
$
68,603

 
$
4,225

 
6.2
%
 
33.4
%
On-site payroll (1)
43,674

 
45,499

 
(1,825
)
 
(4.0
%)
 
20.0
%
Utilities (2)
38,262

 
33,414

 
4,848

 
14.5
%
 
17.5
%
Repairs and maintenance (3)
25,940

 
25,217

 
723

 
2.9
%
 
11.9
%
Property management costs (4)
19,030

 
19,485

 
(455
)
 
(2.3
%)
 
8.7
%
Insurance
6,246

 
6,321

 
(75
)
 
(1.2
%)
 
2.9
%
Leasing and advertising
2,568

 
3,030

 
(462
)
 
(15.2
%)
 
1.2
%
Other on-site operating expenses (5)
9,691

 
9,916

 
(225
)
 
(2.3
%)
 
4.4
%
 
 
 
 
 
 
 
 
 
 
 
Same store operating expenses
$
218,239

 
$
211,485

 
$
6,754

 
3.2
%
 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
Note: Same store operating results include 18,465 stabilized apartment units acquired in the Archstone acquisition that are owned and managed by the Company.
 
 
 
 
 
 
 
 
 
 
 
(1)
On-site payroll - Includes payroll and related expenses for on-site personnel including property managers, leasing consultants and maintenance staff.
 
 
 
 
 
 
 
 
 
 
 
(2)
Utilities - Represents gross expenses prior to any recoveries under the Resident Utility Billing System ("RUBS"). Recoveries are reflected in rental income.
 
 
 
 
 
 
 
 
 
 
 
(3)
Repairs and maintenance - Includes general maintenance costs, apartment unit turnover costs including interior painting, routine landscaping, security, exterminating, fire protection, snow removal, elevator, roof and parking lot repairs and other miscellaneous building repair costs.
 
 
 
 
 
 
 
 
 
 
 
(4)
Property management costs - Includes payroll and related expenses for departments, or portions of departments, that directly support on-site management. These include such departments as regional and corporate property management, property accounting, human resources, training, marketing and revenue management, procurement, real estate tax, property legal services and information technology.
 
 
 
 
 
 
 
 
 
 
 
(5)
Other on-site operating expenses - Includes ground lease costs and administrative costs such as office supplies, telephone and data charges and association and business licensing fees.

1st Quarter 2014 Earnings Release
 
12

                                            

Equity Residential
 
Debt Summary as of March 31, 2014
(Amounts in thousands)
 
 
 
 
 
 
 
 
Weighted
Average
Maturities
(years)
 
 
 
 
 
 
Weighted
Average
Rates (1)
 
 
 
 
 
 
 
 
 
 
Amounts (1)
 
% of Total
 
 
 
 
 
 
 
 
 
 
 
Secured
 
$
5,167,626

 
47.2
%
 
4.22
%
 
8.2

Unsecured
 
5,775,656

 
52.8
%
 
4.70
%
 
4.3

 
 
 
 
 
 
 
 
 
Total
$
10,943,282

 
100.0
%
 
4.47
%
 
6.1

 
 
 
 
 
 
 
 
 
Fixed Rate Debt:
 
 
 
 
 
 
 
 
Secured – Conventional
 
$
4,386,084

 
40.1
%
 
4.84
%
 
6.7

Unsecured – Public/Private
 
4,727,656

 
43.2
%
 
5.49
%
 
4.8

 
 
 
 
 
 
 
 
 
Fixed Rate Debt
9,113,740

 
83.3
%
 
5.18
%
 
5.7

 
 
 
 
 
 
 
 
 
Floating Rate Debt:
 
 
 
 
 
 
 
 
Secured – Conventional
 
56,868

 
0.5
%
 
2.21
%
 
0.5

Secured – Tax Exempt
 
724,674

 
6.6
%
 
0.63
%
 
17.0

Unsecured – Public/Private
 
750,000

 
6.9
%
 
1.33
%
 
0.8

Unsecured – Revolving Credit Facility
 
298,000

 
2.7
%
 
0.98
%
 
4.0

 
 
 
 
 
 
 
 
 
Floating Rate Debt
 
1,829,542

 
16.7
%
 
1.02
%
 
7.9

 
 
 
 
 
 
 
 
 
Total
 
$
10,943,282

 
100.0
%
 
4.47
%
 
6.1

 
 
 
 
 
 
 
 
 
(1) Net of the effect of any derivative instruments. Weighted average rates are for the quarter ended March 31, 2014.
 
 
 
 
 
 
 
 
 
Note: The Company capitalized interest of approximately $12.8 million and $8.4 million during the quarters ended March 31, 2014 and 2013, respectively.
______________________________________________________________________________________________________
Debt Maturity Schedule as of March 31, 2014
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
Weighted
Average Rates
on Fixed
Rate Debt (1)
 
Weighted
Average
Rates on
Total Debt (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed
Rate (1)
 
Floating
Rate (1)
 
 
 
 
 
 
Year
 
 
 
Total
 
% of Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2014
 
$
509,160

 
$
48,883

 
$
558,043

 
5.1
%
 
5.25
%
 
5.02
%
2015
 
420,448

 
750,000

(2)
1,170,448

 
10.7
%
 
6.28
%
 
3.11
%
2016
 
1,193,250

 

 
1,193,250

 
10.9
%
 
5.34
%
 
5.34
%
2017
 
1,346,734

 
456

 
1,347,190

 
12.3
%
 
6.16
%
 
6.16
%
2018
 
84,359

 
395,659

(3)
480,018

 
4.4
%
 
5.61
%
 
1.75
%
2019
 
806,644

 
20,766

 
827,410

 
7.6
%
 
5.48
%
 
5.35
%
2020
 
1,678,601

 
809

 
1,679,410

 
15.3
%
 
5.49
%
 
5.49
%
2021
 
1,195,242

 
856

 
1,196,098

 
10.9
%
 
4.63
%
 
4.64
%
2022
 
228,933

 
905

 
229,838

 
2.1
%
 
3.17
%
 
3.18
%
2023
 
1,303,079

 
956

 
1,304,035

 
11.9
%
 
3.75
%
 
3.75
%
2024+
 
297,925

 
674,988

 
972,913

 
8.9
%
 
6.25
%
 
2.23
%
Premium/(Discount)
 
49,365

 
(64,736
)
 
(15,371
)
 
(0.1
%)
 
N/A

 
N/A

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
9,113,740

 
$
1,829,542

 
$
10,943,282

 
100.0
%
 
5.20
%
 
4.46
%
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Net of the effect of any derivative instruments. Weighted average rates are as of March 31, 2014.
 
 
 
 
 
 
 
 
 
 
 
 
 
(2) Includes the Company's $750.0 million unsecured term loan facility that matures on January 11, 2015 and is subject to a one-year extension option exercisable by the Company.
 
 
 
 
 
 
 
 
 
 
 
 
 
(3) Includes $298.0 million outstanding on the Company's unsecured revolving credit facility. As of March 31, 2014, there was approximately $2.17 billion available on this facility.

1st Quarter 2014 Earnings Release
 
13

                                            

Equity Residential
Unsecured Debt Summary as of March 31, 2014
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unamortized
Premium/(Discount)
 
 
 
 
Coupon
Rate
 
Due
Date
 
Face
Amount
 
 
Net
Balance
 
 
 
 
 
 
Fixed Rate Notes:
 
 
 
 
 
 
 
 
 
 
 
 
5.250%
 
09/15/14
 
$
500,000

 
$
(28
)
 
$
499,972

 
 
6.584%
 
04/13/15