Debt

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Debt

9.Debt

EQR does not have any indebtedness as all debt is incurred by the Operating Partnership. Weighted average interest rates noted below for the years ended December 31, 2023 and 2022 include the effect of any derivative instruments and amortization of premiums/discounts/OCI (other comprehensive income) on debt and derivatives.

Mortgage Notes Payable

The following tables summarize the Company’s mortgage notes payable activity for the years ended December 31, 2023 and 2022, respectively (amounts in thousands):

	Mortgage notes payable, net as of December 31, 2022		Proceeds			Assumptions			Lump sum payoffs				Scheduled principal repayments			Amortization of premiums/ discounts		Amortization of deferred financing costs, net (1)			Mortgage notes payable, net as of December 31, 2023
Fixed Rate Debt:
Secured – Conventional	$	1,608,838	$	550,000	(2)	$	42,256	(3)	$	(800,000	)	(2)	$	—		$	601	$	(3,097	)	$	1,398,598
Floating Rate Debt:
Secured – Conventional		108,378		22,896			—			(132,598	)			(54	)		—		1,378			—
Secured – Tax Exempt		236,222		—			—			—				(3,300	)		1,242		140			234,304
Floating Rate Debt		344,600		22,896			—			(132,598	)			(3,354	)		1,242		1,518			234,304
Total	$	1,953,438	$	572,896		$	42,256		$	(932,598	)		$	(3,354	)	$	1,843	$	(1,579	)	$	1,632,902

(1)Represents amortization of deferred financing costs, net of debt financing costs.

(2)Obtained $200.0 million of 5.18% fixed rate mortgage debt maturing in September 2033 and $350.0 million of 5.25% fixed rate mortgage debt maturing in September 2033. The secured notes totaling $550.0 million have an all-in effective interest rate of approximately 4.7%. The proceeds from these loans were used, along with funding from the Company’s commercial paper note program, to repay $800.0 million of 4.21% fixed rate mortgage debt that was due to mature in November 2023.

(3)Assumed $53.5 million of 2.24% fixed rate mortgage debt maturing in September 2030 on one acquired property and recorded an initial discount of approximately $11.2 million.

	Mortgage notes payable, net as of December 31, 2021		Proceeds			Lump sum payoffs			Scheduled principal repayments			Amortization of premiums/ discounts		Amortization of deferred financing costs, net (1)		Mortgage notes payable, net as of December 31, 2022
Fixed Rate Debt:
Secured – Conventional	$	1,896,472	$	—		$	(286,461	)	$	(3,311	)	$	941	$	1,197	$	1,608,838
Floating Rate Debt:
Secured – Conventional		59,890		48,054	(2)		—			(81	)		—		515		108,378
Secured – Tax Exempt		234,839		—			—			—			1,243		140		236,222
Floating Rate Debt		294,729		48,054			—			(81	)		1,243		655		344,600
Total	$	2,191,201	$	48,054		$	(286,461	)	$	(3,392	)	$	2,184	$	1,852	$	1,953,438

(1)Represents amortization of deferred financing costs, net of debt financing costs.

(2)See Note 6 for additional discussion of the variable rate construction mortgage debt.

The following table summarizes certain interest rate and maturity date information as of and for the years ended December 31, 2023 and 2022, respectively:

	December 31, 2023	December 31, 2022
Interest Rate Ranges (ending)	0.10% - 5.25%	0.10% - 7.10%
Weighted Average Interest Rate	3.68%	3.46%
Maturity Date Ranges	2029-2061	2023-2061

As of December 31, 2023 and 2022, the Company had $246.7 million and $250.0 million, respectively, of secured tax-exempt bonds subject to third-party credit enhancement.

The historical cost, net of accumulated depreciation, of encumbered properties was $2.1 billion and $2.5 billion at December 31, 2023 and 2022, respectively.

Notes

The following tables summarize the Company’s notes activity for the years ended December 31, 2023 and 2022, respectively (amounts in thousands):

	Notes, net as of December 31, 2022		Proceeds		Lump sum payoffs		Amortization of premiums/ discounts		Amortization of deferred financing costs, net (1)		Notes, net as of December 31, 2023
Fixed Rate Debt:
Unsecured – Public	$	5,342,329	$	—	$	—	$	2,248	$	3,840	$	5,348,417

(1)Represents amortization of deferred financing costs, net of debt financing costs.

	Notes, net as of December 31, 2021		Proceeds		Lump sum payoffs			Amortization of premiums/ discounts		Amortization of deferred financing costs, net (1)		Notes, net as of December 31, 2022
Fixed Rate Debt:
Unsecured – Public	$	5,835,222	$	—	$	(500,000	)	$	2,820	$	4,287	$	5,342,329

(1)Represents amortization of deferred financing costs, net of debt financing costs.

The following table summarizes certain interest rate and maturity date information as of and for the years ended December 31, 2023 and 2022, respectively:

	December 31, 2023	December 31, 2022
Interest Rate Ranges (ending)	1.85% - 7.57%	1.85% - 7.57%
Weighted Average Interest Rate	3.51%	3.61%
Maturity Date Ranges	2025-2047	2025-2047

The Company’s unsecured public notes contain certain financial and operating covenants including, among other things, maintenance of certain financial ratios. The Company was in compliance with its unsecured public debt covenants for both the years ended December 31, 2023 and 2022.

EQR and ERPOP currently have an active universal shelf registration statement for the issuance of equity and debt securities that automatically became effective upon filing with the SEC in May 2022 and expires in May 2025.

Line of Credit and Commercial Paper

The Company has a $2.5 billion unsecured revolving credit facility maturing on October 26, 2027. The Company has the ability to increase available borrowings by an additional $750.0 million by adding lenders to the facility, obtaining the agreement of existing lenders to increase their commitments or incurring one or more term loans. The interest rate on advances under the facility will generally be the Secured Overnight Financing Rate ("SOFR") plus a spread (currently 0.725%), or based on bids received from the lending group, and the Company pays an annual facility fee (currently 0.125%). Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating. The Company did not borrow any amounts under its revolving credit facility during the years ended December 31, 2023 and 2022.

The Company has an unsecured commercial paper note program under which it may borrow up to a maximum of $1.0 billion subject to market conditions. The notes will be sold under customary terms in the United States commercial paper note market and will rank pari passu with all of the Company’s other unsecured senior indebtedness.

The following table summarizes certain weighted average interest rate, maturity and amounts outstanding information for the commercial paper program as of and for the years ended December 31, 2023 and 2022, respectively:

	December 31, 2023	December 31, 2022
Weighted Average Interest Rate (1)	5.47%	1.52%
Weighted Average Maturity (in days)	14	4
Weighted Average Amounts Outstanding	$276.0 million	$156.1 million

(1)The notes bear interest at various floating rates.

The Company limits its utilization of the revolving credit facility in order to maintain liquidity to support its $1.0 billion commercial paper program along with certain other obligations. The following table presents the availability on the Company’s unsecured revolving credit facility as of December 31, 2023 and 2022, respectively (amounts in thousands):

	December 31, 2023			December 31, 2022
Unsecured revolving credit facility commitment	$	2,500,000		$	2,500,000
Commercial paper balance outstanding		(410,000	)		(130,000	)
Unsecured revolving credit facility balance outstanding		—			—
Other restricted amounts		(3,415	)		(3,463	)
Unsecured revolving credit facility availability	$	2,086,585		$	2,366,537

Other

The following table summarizes the Company’s total debt extinguishment costs recorded as additional expense for the years ended December 31, 2023, 2022 and 2021, respectively (amounts in thousands):

	December 31, 2023		December 31, 2022		December 31, 2021
Write-offs of unamortized deferred financing costs	$	1,143	$	717	$	744
Write-offs of unamortized (premiums)/discounts/OCI		—		3,947		—
Total	$	1,143	$	4,664	$	744

The following table provides a summary of the aggregate payments of principal on all debt for each of the next five years and thereafter as of December 31, 2023 (amounts in thousands):

Year	Total
2024 (1)	$	416,200
2025		458,100
2026		601,025
2027		409,800
2028		910,700
Thereafter		4,668,832
Subtotal		7,464,657
Deferred Financing Costs and Unamortized (Discount)		(74,207	)
Total	$	7,390,450

(1)Includes $410.0 million in principal outstanding on the Company’s commercial paper program.