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Equity Residential$66.06($.66)(.99%)

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 Equity Residential Reports Third Quarter 2016 Results
   Tuesday, October 25, 2016 4:14:04 PM ET

Equity Residential (EQR ) today reported results for the quarter and nine months ended September 30, 2016. All per share results are reported as available to common shares/units on a diluted basis.

"Renter demand in urban and high density, close-in suburban markets remains extraordinarily strong as demonstrated by 96% occupancy across our portfolio," said David J. Neithercut, Equity Residential’s President and CEO. "However, new apartment supply and slowing growth of higher paying jobs have combined to constrain rental rates causing our revenue growth this year to revert more in line with historical trends."

Highlights

-- Increased same store revenues 3.4% in the third quarter.



-- Paid a special cash dividend of $3.00 per share, or approximately $1.1 billion, to its shareholders on October 14, 2016, which, when combined with the special cash dividend of $8.00 per share paid in March 2016, resulted in total capital returned to EQR’s shareholders of more than $4.0 billion in 2016.

-- On October 12, 2016, completed a $500 million unsecured debt offering at a coupon of 2.85%, the lowest ever for an EQR 10-year and the third lowest of any REIT 10-year.

-- Named the 2016 Global Residential Listed Sector Leader in Sustainability by GRESB.

Third Quarter 2016

Earnings per Share (EPS) for the third quarter of 2016 was $0.56 compared to $0.53 in the third quarter of 2015. The difference is due primarily to a higher amount of property sale gains due to more property sales in the third quarter of 2016, lower depreciation expense in the third quarter of 2016 as a direct result of the Company’s significant sales activity in 2016 and the items described below.

FFO (Funds from Operations), as defined by the National Association of Real Estate Investment Trusts (NAREIT), was $0.77 per share for the third quarter of 2016 compared to $0.87 per share in the third quarter of 2015. The difference is due primarily to the various adjustment items listed on page 25 of this release and the items described below.

Normalized FFO for the third quarter of 2016 was $0.78 per share compared to $0.89 per share in the third quarter of 2015. The following items impacted Normalized FFO per share in the quarter:

-- A positive impact of approximately $0.02 per share from increased same store net operating income (NOI);

-- A positive impact of approximately $0.03 per share from NOI from non-same store properties currently in lease-up;

-- A positive impact of approximately $0.07 per share from lower total interest expense due to lower debt balances;

-- A negative impact of approximately $0.22 per share of lower NOI primarily as a result of the Company’s 2016 disposition activity; and

-- A negative impact of approximately $0.01 per share from other items including lower fee and asset management income.

Reconciliations and definitions of FFO and Normalized FFO are provided on pages 7, 28 and 29 of this release and the Company has included guidance for Normalized FFO on page 26 and FFO and EPS on page 29 of this release.

Nine Months Ended September 30, 2016

EPS for the nine months ended September 30, 2016 was $10.92 compared to $1.80 for the same period of 2015. The difference is due primarily to a higher amount of property sale gains due to significantly more property sales in the first nine months of 2016 and the various adjustment items listed on page 25 of this release.

FFO for the nine months ended September 30, 2016 was $2.14 per share compared to $2.56 per share in the same period of 2015. The difference is due primarily to the various adjustment items listed on page 25 of this release and the items described below.

Normalized FFO for the nine months ended September 30, 2016 was $2.29 per share compared to $2.54 per share for the same period of 2015. The difference is due primarily to:

-- A positive impact of approximately $0.14 per share from increased same store NOI;

-- A positive impact of approximately $0.09 per share from NOI from non-same store properties currently in lease-up;

-- A positive impact of approximately $0.16 per share from lower total interest expense due to lower debt balances;

-- A negative impact of approximately $0.60 per share of lower NOI primarily as a result of the Company’s 2016 disposition activity; and

-- A negative impact of approximately $0.04 per share from higher general and administrative expense, lower fee and asset management income and other items.

Same Store Results

On a same store third quarter to third quarter comparison, which includes 72,229 apartment units, revenues increased 3.4%, expenses increased 5.9% and NOI increased 2.4%. Average Rental Rate increased 3.4% and occupancy decreased 0.2%. The Company’s same store expenses in the quarter were impacted by an adverse legal decision regarding the calculation of real estate taxes for several of the Company’s properties in Jersey City, New Jersey, higher property payroll costs due to fuller property-level employment and increased wage rates, and increased leasing and advertising expenses due primarily to spending on promotional and incentive efforts in San Francisco and New York.

On a same store nine-month to nine-month comparison, which includes 71,488 apartment units, revenues increased 4.0%, expenses increased 2.5% and NOI increased 4.7%. Average Rental Rate increased 4.0% and occupancy remained flat at 96.1%.

Investment Activity

During the third quarter of 2016, the Company acquired a 94-unit apartment property in Los Angeles for a purchase price of approximately $45.2 million and an Acquisition Capitalization Rate of 4.5%. Also during the third quarter of 2016, the Company sold eight consolidated apartment properties, consisting of 941 apartment units, for an aggregate sale price of approximately $140.6 million at a weighted average Disposition Yield of 6.2% and generating an Unlevered Internal Rate of Return (Unlevered IRR) of 12.0%. During the quarter, the Company also sold a land parcel in Berkeley, California for $30.0 million and an unconsolidated property in Atlanta for which the Company received approximately $12.4 million for its 20% interest.

Also during the quarter, the Company stabilized three development properties: 170 Amsterdam in New York, Azure in San Francisco and Odin in Seattle, at a weighted average projected yield of 5.8%.

During the first nine months of 2016, the Company acquired four consolidated apartment properties, consisting of 573 apartment units, for an aggregate purchase price of approximately $249.3 million at a weighted average Acquisition Capitalization Rate of 4.8%. During the first nine months of 2016, the Company sold 91 consolidated apartment properties, consisting of 27,831 apartment units, for an aggregate sale price of approximately $6.57 billion, generating an Unlevered IRR of 11.8%. These sales produced a net gain on sales of real estate properties of approximately $3.87 billion and an Economic Gain of approximately $2.52 billion. The weighted average Disposition Yield on these sales is estimated at 5.3%. Also during the first nine months of 2016, the Company sold its entire interest in the management contracts and related rights associated with the military housing ventures at Joint Base Lewis McChord in Washington State, for approximately $63.3 million, generating a gain on sale of approximately $52.4 million. Also during the first nine months of 2016, the Company sold three land parcels for an aggregate sale price of approximately $57.5 million as well as the unconsolidated property in which it had a partial interest as described above.

Capital Markets Activity

On October 12, 2016, the Company closed a $500 million unsecured note offering maturing November 1, 2026 with a coupon of 2.85% and an all in effective rate of approximately 3.10% including the effect of underwriters’ fees and the termination of certain interest rate hedges. Proceeds from this issuance were used for working capital and general corporate purposes.

Fourth Quarter 2016 Guidance

The Company has established an EPS guidance range of $0.62 to $0.66 for the fourth quarter of 2016. The difference between the Company’s third quarter 2016 EPS of $0.56 and the midpoint of the fourth quarter 2016 guidance range of $0.64 is due primarily to higher expected gains on property sales and sales of non-operating assets and the items described below.

The Company has established an FFO guidance range of $0.82 to $0.86 per share for the fourth quarter of 2016. The difference between the Company’s third quarter 2016 FFO of $0.77 per share and the midpoint of the fourth quarter 2016 guidance range of $0.84 per share is due primarily to higher expected gains on sales of non-operating assets and the items described below.

The Company has established a Normalized FFO guidance range of $0.77 to $0.81 per share for the fourth quarter of 2016. The difference between the Company’s third quarter 2016 Normalized FFO of $0.78 per share and the midpoint of the fourth quarter 2016 guidance range of $0.79 per share is due primarily to:

-- A positive impact of approximately $0.03 per share from increased same store NOI;

-- A positive impact of approximately $0.01 per share from NOI from non-same store properties currently in lease-up;

-- A negative impact of approximately $0.01 per share of lower NOI primarily as a result of the Company’s 2016 disposition activity; and

-- A negative impact of approximately $0.02 per share from higher total interest expense due to lower capitalized interest as well as higher debt balances.

Full Year 2016 Guidance

The Company has revised its guidance for its full year 2016 same store operating performance, EPS, FFO per share, Normalized FFO per share and transactions as listed below:

                                                      Previous              Revised
                                                                     ----------------                      --------------------
Same store:
  Physical occupancy                                                       95.9%                                   96.0%
  Revenue change                                                       3.5% to 4.0%                            3.6% to 3.9%
  Expense change                                                       2.5% to 3.0%                            2.8% to 3.2%
  NOI change                                                          3.75% to 4.25%                           3.8% to 4.1%
 
 
EPS                                                                  $11.84 to $11.90                        $11.54 to $11.58
FFO per share                                                         $2.96 to $3.02                          $2.96 to $3.00
Normalized FFO per share                                              $3.05 to $3.11                          $3.06 to $3.10
 
Transactions:
  Consolidated Rental Acquisitions                                     $350 million                            $250 million
  Consolidated Rental Dispositions                                     $6.9 billion                            $6.7 billion
  Acquisition Cap Rate/Disposition Yield Spread                       75 basis points                         60 basis points
                                                                                                            

The change in the full year EPS guidance range is due primarily to lower gains on property sales as a result of the Company’s reduced disposition guidance and the items described below.

The change in the full year FFO per share guidance range is due primarily to the items described below.

The midpoint of the Company’s full year Normalized FFO per share guidance range has not changed. The small reduction in expected same store NOI has been offset by the positive impact of an expected reduction in general and administrative expense.

Glossary of Terms and Definitions

To improve comparability and enhance disclosure, the Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 27 through 30 of this release.

Fourth Quarter 2016 Earnings and Conference Call

Equity Residential expects to announce fourth quarter 2016 results on Tuesday, January 31, 2017 and host a conference call to discuss those results at 10:00 a.m. CT on Wednesday, February 1, 2017.

About Equity Residential

Equity Residential is an S&P 500 company focused on the acquisition, development and management of rental apartment properties in urban and high-density suburban coastal gateway markets where today’s affluent renters want to live, work and play. Equity Residential owns or has investments in 308 properties consisting of 78,826 apartment units, primarily located in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California. 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, Wednesday, October 26, 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.

                                                                                                                                                                                                                                                  
                                                                                                                                                                                   Equity Residential
                                                                                                                                                                          Consolidated Statements of Operations
                                                                                                                                                                      (Amounts in thousands except per share data)
                                                                                                                                                                                       (Unaudited)
                                                                                                                                                                                                                                                                                                                                
                                                                                                                                            Nine Months Ended September 30,                                                                                                                            Quarter Ended September 30,
                                                                                          ----------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                    2016                                                                        2015                                                                       2016                                                                          2015
                                                                                          ---------------------------------------------------------                     ----------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
REVENUES
  Rental income                                                                                              $      1,816,960                                                              $ 2,035,359                                                              $        605,856                                                              $        694,245
  Fee and asset management                                                                           3,351                              6,413                                     218                                   2,044  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
    Total revenues                                                                               1,820,311                          2,041,772                                 606,074                                 696,289  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                
EXPENSES
  Property and maintenance                                                                                            309,688                                                                  364,948                                                                       104,216                                                                       122,383
  Real estate taxes and insurance                                                                                     238,954                                                                  254,513                                                                        81,343                                                                        84,962
  Property management                                                                                                  64,003                                                                   64,651                                                                        19,517                                                                        20,094
  General and administrative                                                                                           47,408                                                                   50,618                                                                        12,395                                                                        15,197
  Depreciation                                                                                     528,242                            584,862                                 179,230                                 196,059  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
    Total expenses                                                                               1,188,295                          1,319,592                                 396,701                                 438,695  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                
Operating income                                                                                                      632,016                                                                  722,180                                                                       209,373                                                                       257,594
                                                                                                                                                                                                                                                                                                                                
  Interest and other income                                                                                            65,092                                                                    6,906                                                                         5,509                                                                           256
  Other expenses                                                                                                      (14,480 )                                                                 (2,839 )                                                                     (10,420 )                                                                      (1,139 )
  Interest:
    Expense incurred, net                                                                                            (386,316 )                                                               (333,946 )                                                                     (86,352 )                                                                    (114,298 )
    Amortization of deferred financing costs                                                       (10,000 )                                              (7,734 )                                                   (2,261 )                                                   (2,607 )
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Income before income and other taxes, income (loss) from investments
in
  unconsolidated entities, net gain (loss) on sales of real estate
  properties and land
  parcels and discontinued operations                                                                                 286,312                                                                  384,567                                                                       115,849                                                                       139,806
Income and other tax (expense) benefit                                                                                 (1,189 )                                                                   (698 )                                                                        (426 )                                                                        (329 )
Income (loss) from investments in unconsolidated entities                                                               5,846                                                                   14,388                                                                         7,750                                                                        (1,041 )
Net gain on sales of real estate properties                                                                         3,870,871                                                                  295,692                                                                        90,036                                                                        66,939
Net gain (loss) on sales of land parcels                                                            15,759                                 (1 )                                                    4,037                          --  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Income from continuing operations                                                                                   4,177,599                                                                  693,948                                                                       217,246                                                                       205,375
Discontinued operations, net                                                                           124                                350                                     246                                      81  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income                                                                                                          4,177,723                                                                  694,298                                                                       217,492                                                                       205,456
Net (income) attributable to Noncontrolling Interests:
  Operating Partnership                                                                                              (160,442 )                                                                (26,191 )                                                                      (8,353 )                                                                      (7,778 )
  Partially Owned Properties                                                                        (2,368 )                                              (2,473 )                                                     (823 )                                                     (986 )
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income attributable to controlling interests                                                                    4,014,913                                                                  665,634                                                                       208,316                                                                       196,692
Preferred distributions                                                                                                (2,318 )                                                                 (2,557 )                                                                        (773 )                                                                        (833 )
Premium on redemption of Preferred Shares                                                   --                             (2,789 )                                           --                          --  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income available to Common Shares                                                                        $      4,012,595                                           $   660,288                                           $        207,543                                           $        195,859  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                
Earnings per share - basic:
Income from continuing operations available to Common Shares                                                 $          11.00                                           $      1.82                                           $           0.57                                           $           0.54  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
Net income available to Common Shares                                                                        $          11.00                                           $      1.82                                           $           0.57                                           $           0.54  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
Weighted average Common Shares outstanding                                                         364,917                            363,386                                 365,109                                 363,579  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                
Earnings per share - diluted:
Income from continuing operations available to Common Shares                                                 $          10.92                                           $      1.80                                           $           0.56                                           $           0.53  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
Net income available to Common Shares                                                                        $          10.92                                           $      1.80                                           $           0.56                                           $           0.53  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
Weighted average Common Shares outstanding                                                         382,284                            380,423                                 382,373                                 380,663  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                
Distributions declared per Common Share outstanding                                                          $       12.51125                                           $    1.6575                                           $        3.50375                                           $         0.5525  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                   
                                                                                                                                                                                           Equity Residential
                                                                                                                                                                     Consolidated Statements of Funds From Operations and Normalized
                                                                                                                                                                                          Funds From Operations
                                                                                                                                                                              (Amounts in thousands except per share data)
                                                                                                                                                                                               (Unaudited)
                                                                                                                                                                                                                                                                                                                                                 
                                                                                                                                                          Nine Months Ended September 30,                                                                                                                               Quarter Ended September 30,
                                                                                                      ---------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                2016                                                                          2015                                                                          2016                                                                          2015
                                                                                                      ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
Net income                                                                                                               $      4,177,723                                                              $        694,298                                                              $        217,492                                                              $        205,456
Net (income) attributable to Noncontrolling Interests - Partially                                                     (2,368 )                                                                      (2,473 )                                                                        (823 )                                                                        (986 )
Owned Properties
Preferred distributions                                                                                                            (2,318 )                                                                      (2,557 )                                                                        (773 )                                                                        (833 )
Premium on redemption of Preferred Shares                                                               --                                  (2,789 )                                           --                          --  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income available to Common Shares and Units                                                                                 4,173,037                                                                       686,479                                                                       215,896                                                                       203,637
                                                                                                                                                                                                                                                                                                                                                 
Adjustments:
  Depreciation                                                                                                                    528,242                                                                       584,862                                                                       179,230                                                                       196,059
  Depreciation - Non-real estate additions                                                                            (3,932 )                                                                      (3,767 )                                                                      (1,297 )                                                                      (1,243 )
  Depreciation - Partially Owned Properties                                                                           (2,896 )                                                                      (3,248 )                                                                        (953 )                                                                      (1,086 )
  Depreciation - Unconsolidated Properties                                                                             3,606                                                                         3,688                                                                         1,139                                                                         1,231
  Net (gain) on sales of unconsolidated entities - operating assets                                                   (8,841 )                                                                        (100 )                                                                      (8,841 )                                                                        (100 )
  Net (gain) on sales of real estate properties                                                                                (3,870,871 )                                                                    (295,692 )                                                                     (90,036 )                                                                     (66,939 )
  Discontinued operations:
    Net (gain) on sales of discontinued operations                                                                 (43 )                                           --                                     (28 )                                           --  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
FFO available to Common Shares and Units                                                                                          818,302                                                                       972,222                                                                       295,110                                                                       331,559
                                                                                                                                                                                                                                                                                                                                                 
Adjustments (see page 25 for additional detail):
  Asset impairment and valuation allowances                                                                                --                                                                --                                                                --                                                                --
  Property acquisition costs and write-off of pursuit costs                                                                         5,487                                                                       (13,947 )                                                                       1,228                                                                           943
  Debt extinguishment (gains) losses, including prepayment penalties,
  preferred
    share redemptions and non-cash convertible debt discounts                                                                     120,276                                                                         4,501                                                                           112                                                                         3,032
  (Gains) losses on sales of non-operating assets, net of income and
  other tax
    expense (benefit)                                                                                                             (74,256 )                                                                        (728 )                                                                      (7,378 )                                                                          72
  Other miscellaneous items                                                                                      7,221                                   2,701                                   8,118                                   4,880  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Normalized FFO available to Common Shares and Units                                                                      $        877,030                                           $        964,749                                           $        297,190                                           $        340,486  
                                                                                                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                 
FFO                                                                                                                      $        820,620                                                              $        977,568                                                              $        295,883                                                              $        332,392
Preferred distributions                                                                                                            (2,318 )                                                                      (2,557 )                                                                        (773 )                                                                        (833 )
Premium on redemption of Preferred Shares                                                               --                                  (2,789 )                                           --                          --  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
FFO available to Common Shares and Units                                                                                 $        818,302                                           $        972,222                                           $        295,110                                           $        331,559  
                                                                                                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
FFO per share and Unit - basic                                                                                           $           2.16                                           $           2.58                                           $           0.78                                           $           0.88  
                                                                                                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
FFO per share and Unit - diluted                                                                                         $           2.14                                           $           2.56                                           $           0.77                                           $           0.87  
                                                                                                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                 
Normalized FFO                                                                                                           $        879,348                                                              $        967,306                                                              $        297,963                                                              $        341,319
Preferred distributions                                                                                         (2,318 )                                                   (2,557 )                                                     (773 )                                                     (833 )
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Normalized FFO available to Common Shares and Units                                                                      $        877,030                                           $        964,749                                           $        297,190                                           $        340,486  
                                                                                                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Normalized FFO per share and Unit - basic                                                                                $           2.32                                           $           2.56                                           $           0.78                                           $           0.90  
                                                                                                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Normalized FFO per share and Unit - diluted                                                                              $           2.29                                           $           2.54                                           $           0.78                                           $           0.89  
                                                                                                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                 
Weighted average Common Shares and Units outstanding - basic                                                   378,745                                 376,970                                 379,008                                 377,147  
                                                                                                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Weighted average Common Shares and Units outstanding - diluted                                                 382,284                                 380,423                                 382,373                                 380,663  
                                                                                                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                 
Note: See page 25 for additional detail regarding the
adjustments from FFO to Normalized FFO. See pages 27 through 30 for
the definitions of non-GAAP financial measures and other terms as
well as the reconciliations of EPS to FFO per share and Normalized
FFO per share.
                                                                                                                                     
                                                                                                       Equity Residential
                                                                                                   Consolidated Balance Sheets
                                                                                         (Amounts in thousands except for share amounts)
                                                                                                           (Unaudited)
                                                                                                                                                                             
                                                                                                                 September 30, 2016                                                           December 31, 2015
                                                                                              ---------------------------------------------------------                     -----------------------------------------------------
ASSETS
Investment in real estate
  Land                                                                                                           $      5,874,647                                                              $  5,864,046
  Depreciable property                                                                                                 18,610,446                                                                18,037,087
  Projects under development                                                                                              761,068                                                                 1,122,376
  Land held for development                                                                            115,082                             158,843  
                                                                                              -------------------- -------------- --------------------                      -------------------- ---------- --------------------
Investment in real estate                                                                                              25,361,243                                                                25,182,352
  Accumulated depreciation                                                                          (5,255,965 )                                           (4,905,406 )
                                                                                              -------------------- -------------- --------------------                      -------------------- ---------- --------------------
Investment in real estate, net                                                                                         20,105,278                                                                20,276,946
Real estate held for sale                                                                                          --                                                                 2,181,135
Cash and cash equivalents                                                                                                 517,586                                                                    42,276
Investments in unconsolidated entities                                                                                     60,911                                                                    68,101
Deposits - restricted                                                                                        129,569                                                                    55,893
Escrow deposits - mortgage                                                                                    62,994                                                                    56,946
Other assets                                                                                           421,406                             428,899  
                                                                                              -------------------- -------------- --------------------                      -------------------- ---------- --------------------
      Total assets                                                                                               $     21,297,744                                           $ 23,110,196  
                                                                                              ==================== ============== ====================                      ==================== ========== ====================
                                                                                                                                                                             
LIABILITIES AND EQUITY
Liabilities:
  Mortgage notes payable, net                                                                                    $      4,138,301                                                              $  4,685,134
  Notes, net                                                                                                            4,360,486                                                                 5,848,956
  Line of credit and commercial paper                                                                              --                                                                   387,276
  Accounts payable and accrued expenses                                                                                   199,795                                                                   187,124
  Accrued interest payable                                                                                                 69,441                                                                    85,221
  Other liabilities                                                                                                       353,605                                                                   366,387
  Security deposits                                                                                                        64,060                                                                    77,582
  Distributions payable                                                                              1,331,363                             209,378  
                                                                                              -------------------- -------------- --------------------                      -------------------- ---------- --------------------
      Total liabilities                                                                             10,517,051                          11,847,058  
                                                                                              -------------------- -------------- --------------------                      -------------------- ---------- --------------------
                                                                                                                                                                             
Commitments and contingencies
                                                                                                                                                                             
Redeemable Noncontrolling Interests - Operating Partnership                               441,892                             566,783  
                                                                                              -------------------- -------------- --------------------                      -------------------- ---------- --------------------
Equity:
  Shareholders’ equity:
    Preferred Shares of beneficial interest, $0.01 par value;
      100,000,000 shares authorized; 745,600 shares issued and
      outstanding as of September 30, 2016 and December 31, 2015                                                           37,280                                                                    37,280
    Common Shares of beneficial interest, $0.01 par value;
      1,000,000,000 shares authorized; 365,657,065 shares issued
      and outstanding as of September 30, 2016 and 364,755,444
      shares issued and outstanding as of December 31, 2015                                                                 3,657                                                                     3,648
    Paid in capital                                                                                                     8,741,846                                                                 8,572,365
    Retained earnings                                                                                                   1,451,452                                                                 2,009,091
    Accumulated other comprehensive (loss)                                                            (118,730 )                                             (152,016 )
                                                                                              -------------------- -------------- --------------------                      -------------------- ---------- --------------------
        Total shareholders’ equity                                                          10,115,505                                                                10,470,368
  Noncontrolling Interests:
    Operating Partnership                                                                                                 219,102                                                                   221,379
    Partially Owned Properties                                                                           4,194                               4,608  
                                                                                              -------------------- -------------- --------------------                      -------------------- ---------- --------------------
        Total Noncontrolling Interests                                                                 223,296                             225,987  
                                                                                              -------------------- -------------- --------------------                      -------------------- ---------- --------------------
        Total equity                                                                                10,338,801                          10,696,355  
                                                                                              -------------------- -------------- --------------------                      -------------------- ---------- --------------------
        Total liabilities and equity                                                                             $     21,297,744                                           $ 23,110,196  
                                                                                              ==================== ============== ====================                      ==================== ========== ====================
 
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                     Equity Residential
                                                                                                      Portfolio Summary
                                                                                                  As of September 30, 2016
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                         
                                                                                                                                                          % of                                          Average
                                                                                                                       Apartment                       Stabilized                                       Rental
             Markets/Metro Areas                                                      Properties                         Units                             NOI                                           Rate
-------------------------------------------                                           ----------                      ---------                      --------------                      ------------------------------------
                                                                                                                                                                                          
Los Angeles                                                                                   70                         15,857                               18.0%                                         $          2,376
Orange County                                                                                 12                          3,684                                3.7%                                                    2,012
San Diego                                                                                     13                          3,505                                3.6%                                 2,189
                                                                                      ----------                      ---------                      --------------                      -------------------- --------------
Subtotal - Southern California                                                   95                         23,046                               25.3%                                                    2,287
                                                                                                                                                                                          
San Francisco                                                                                 53                         12,718                               19.6%                                                    3,058
New York                                                                                      40                         10,632                               19.0%                                                    3,766
Washington DC                                                                                 47                         15,637                               17.2%                                                    2,352
Boston                                                                                        29                          7,432                               10.8%                                                    2,753
Seattle                                                                                       37                          7,096                                7.6%                                                    2,149
All Other Markets                                                                              5       1,320             0.5%              1,261
                                                                                      ---------- -------------------- --------- -------------------- -------------- -------------------- -------------------- --------------
Total                                                                                        306                         77,881                              100.0%                                                    2,645
                                                                                                                                                                                          
Unconsolidated Properties                                                                      2         945   --     --
                                                                                      ---------- -------------------- --------- -------------------- -------------- -------------------- -------------------- --------------
                                                                                                                                                                                          
Grand Total                                                                                  308                         78,826                              100.0%                                         $          2,645
                                                                                      ==========                      =========                      ==============                      ==================== ==============
                                                                                                                                                                                          
Note: Projects under development are not included in the Portfolio
Summary until construction has been completed. See pages 27 through
30 for the definitions of non-GAAP financial measures and other
terms, such as Average Rental Rate and % of Stabilized NOI.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                    Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                  
                                                                                                                                            Portfolio as of September 30, 2016
                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                               Properties                                                     Apartment Units
                                                                                                                                                                  ----------------------------------                       --------------------------------------------------
    Wholly Owned Properties                                                                                                                                                  285                                                                    73,557
    Master-Leased Properties - Consolidated                                                                                                                                    3                                                                       853
    Partially Owned Properties - Consolidated                                                                                                                                 18                                                                     3,471
    Partially Owned Properties - Unconsolidated                                                                                                                                2                                 945  
                                                                                                                                                                  -------------- --------------------                      -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                             308                              78,826  
                                                                                                                                                                  ============== ====================                      ==================== ========== ====================
                                                                                     
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------------------------------------------- -------------------------------------------------------- ------------------------------------------------------------------------- ---------------------
                                                                                                                                                                                                                                                                                                      
                                                                                                                                               Portfolio Rollforward Q3 2016
                                                                                                                                                     ($ in thousands)
                                                                                                                                                                                                                                                                                                      
                                                                                                                      Properties                                                Apartment                                                     Purchase Price                                              Acquisition
                                                                                                                                                                                  Units                                                                                                                    Cap Rate
                                                                                                         ----------------------------------                       ----------------------------------                       --------------------------------------------------                        -------------------
                                                                     6/30/2016                                      315                                                   79,458
Acquisitions:
  Consolidated:
    Rental Properties - Stabilized                                                                       1                                                       94                                                              $     45,200                                                  4.5 %
                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                Sales Price                                               Disposition
                                                                                                                                                                                                                                                                                                             Yield
                                                                                                                                                                                                                           --------------------------------------------------                        -------------------
Dispositions:
  Consolidated:
    Rental Properties                                                                                                (8 )                                                   (941 )                                                            $   (140,600 )                                               (6.2 %)
   Land Parcels                                                                                          --                                           --                                                              $    (30,000 )
  Unconsolidated:
    Rental Properties (A)                                                                                            (1 )                                                   (336 )                                                            $    (74,500 )                                               (5.6 %)
Completed Developments - Consolidated                                                                                 1                                                      545
Configuration Changes                                                                                    --                                     6  
                                                                                                         -------------- --------------------                      -------------- --------------------
                                                                                                                                                                                                                                                                                                      
                                                                     9/30/2016                                      308                                78,826  
                                                                                                         ============== ====================                      ============== ====================
                                                                                     
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------------------------------------------- -------------------------------------------------------- ------------------------------------------------------------------------- ---------------------
                                                                                                                                                                                                                                                                                                      
                                                                                                                                                Portfolio Rollforward 2016
                                                                                                                                                     ($ in thousands)
                                                                                                                                                                                                                                                                                                      
                                                                                                                      Properties                                                Apartment                                                     Purchase Price                                              Acquisition
                                                                                                                                                                                  Units                                                                                                                    Cap Rate
                                                                                                         ----------------------------------                       ----------------------------------                       --------------------------------------------------                        -------------------
                                                                                                                                                                                                                                                                                                      
                                                                    12/31/2015                                      394                                                  109,652
Acquisitions:
  Consolidated:
    Rental Properties                                                                                                 4                                                      573                                                              $    249,334                                                  4.8 %
                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                Sales Price                                               Disposition
                                                                                                                                                                                                                                                                                                             Yield
                                                                                                                                                                                                                           --------------------------------------------------                        -------------------
Dispositions:
  Consolidated:
    Rental Properties                                                                                               (91 )                                                (27,831 )                                                            $ (6,568,003 )                                               (5.3 %)
    Land Parcels                                                                                         --                                           --                                                              $    (57,455 )
  Unconsolidated:
    Rental Properties (A)                                                                                            (1 )                                                   (336 )                                                            $    (74,500 )                                               (5.6 %)
  Other:
    Military Housing (B)                                                                                             (2 )                                                 (5,161 )                                                            $    (63,250 )
Completed Developments - Consolidated                                                                                 4                                                    1,900
Configuration Changes                                                                                    --                                    29  
                                                                                                         -------------- --------------------                      -------------- --------------------
                                                                                                                                                                                                                                                                                                      
                                                                     9/30/2016                                      308                                78,826  
                                                                                                         ============== ====================                      ============== ====================
                                                                                                                                                                                                                                                                                                      
Note: See pages 27 through 30 for the definitions of non-GAAP
financial measures and other terms, such as Acquisition Cap Rate and
Disposition Yield.
                      
(A)                  The Company owned a 20% interest in this unconsolidated rental
                     property. Sale price listed is the gross sale price. The Company’s
                     share of the net sales proceeds approximated $12.4 million.
(B)                  The Company sold its entire interest in the management contracts and
                     related rights associated with the military housing ventures at
                     Joint Base Lewis McChord during the second quarter of 2016.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                               Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                        
                                                                                                                                                    Third Quarter 2016 vs. Third Quarter 2015
                                                                                                                                          Same Store Results/Statistics for 72,229 Same Store Apartment
                                                                                                                                                                      Units
                                                                                                                                                 $ in thousands (except for Average Rental Rate)
                                                                                                                                                                                                                                                                                                                            
                                                                                                                    Results                                                                                                                                                    Statistics
                                          ----------------------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                       Average
                                                                                                                                                                                                                                       Rental                                          Physical
     Description                                         Revenues                                                  Expenses                                                     NOI                                                     Rate                                           Occupancy                                 Turnover
--------------------                      --------------------------------------                     ------------------------------------                     --------------------------------------                     -----------------------------------                     ---------------------                     ---------------------
                                                                                                                                                                                                                                                                                                                            
       Q3 2016                                 $   563,892                                                $ 168,706                                                $   395,186                                                $  2,602                                                 96.0 %                                    17.5 %
       Q3 2015                                 $   545,281                             $ 159,343                             $   385,938                             $  2,516                              96.2 %                                    17.9 %
                                          ------ --------- --------------------                      ------ ------- --------------------                      ------ --------- --------------------                      ------ ------ --------------------                      ---------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                                                                                            
       Change                                  $    18,611                             $   9,363                             $     9,248                             $     86                              (0.2 %)                (0.4 %)
                                          ====== ========= ====================                      ====== ======= ====================                      ====== ========= ====================                      ====== ====== ====================                      ========== ========= ==================== ========== =========
                                                                                                                                                                                                                                                                                                                            
       Change                                          3.4 %                                                    5.9 %                                                      2.4 %                                                   3.4 %
                                                                                        
-------------------- -------------------- ---------------------------------------------------------- -------------------------------------------------------- ---------------------------------------------------------- ------------------------------------------------------- ----------------------------------------- ---------------------
                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                   Third Quarter 2016 vs. Second Quarter 2016
                                                                                                                                          Same Store Results/Statistics for 73,867 Same Store Apartment
                                                                                                                                                                      Units
                                                                                                                                                 $ in thousands (except for Average Rental Rate)
                                                                                                                                                                                                                                                                                                                            
                                                                                                                    Results                                                                                                                                                    Statistics
                                          ----------------------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                       Average
                                                                                                                                                                                                                                       Rental                                          Physical
     Description                                         Revenues                                                  Expenses                                                     NOI                                                     Rate                                           Occupancy                                 Turnover
--------------------                      --------------------------------------                     ------------------------------------                     --------------------------------------                     -----------------------------------                     ---------------------                     ---------------------
                                                                                                                                                                                                                                                                                                                            
       Q3 2016                                 $   578,222                                                $ 173,015                                                $   405,207                                                $  2,609                                                 96.0 %                                    17.4 %
       Q2 2016                                 $   570,080                             $ 163,646                             $   406,434                             $  2,571                              96.2 %                                    14.8 %
                                          ------ --------- --------------------                      ------ ------- --------------------                      ------ --------- --------------------                      ------ ------ --------------------                      ---------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                                                                                            
       Change                                  $     8,142                             $   9,369                             $    (1,227 )                                              $     38                              (0.2 %)                                    2.6 %
                                          ====== ========= ====================                      ====== ======= ====================                      ====== ========= ====================                      ====== ====== ====================                      ========== =========                      ========== =========
                                                                                                                                                                                                                                                                                                                            
       Change                                          1.4 %                                                    5.7 %                                                     (0.3 %)                                                  1.5 %
                                                                                        
-------------------- -------------------- ---------------------------------------------------------- -------------------------------------------------------- ---------------------------------------------------------- ------------------------------------------------------- ----------------------------------------- ---------------------
                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                    September YTD 2016 vs. September YTD 2015
                                                                                                                                          Same Store Results/Statistics for 71,488 Same Store Apartment
                                                                                                                                                                      Units
                                                                                                                                                 $ in thousands (except for Average Rental Rate)
                                                                                                                                                                                                                                                                                                                            
                                                                                                                    Results                                                                                                                                                    Statistics
                                          ----------------------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                       Average
                                                                                                                                                                                                                                       Rental                                          Physical
     Description                                         Revenues                                                  Expenses                                                     NOI                                                     Rate                                           Occupancy                                 Turnover
--------------------                      --------------------------------------                     ------------------------------------                     --------------------------------------                     -----------------------------------                     ---------------------                     ---------------------
                                                                                                                                                                                                                                                                                                                            
      YTD 2016                                 $ 1,647,480                                                $ 484,643                                                $ 1,162,837                                                $  2,562                                                 96.1 %                                    43.0 %
      YTD 2015                                 $ 1,583,810                             $ 472,930                             $ 1,110,880                             $  2,463                              96.1 %                                    42.9 %
                                          ------ --------- --------------------                      ------ ------- --------------------                      ------ --------- --------------------                      ------ ------ --------------------                      ---------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                                                                                            
       Change                                  $    63,670                             $  11,713                             $    51,957                             $     99                               0.0 %                                     0.1 %
                                          ====== ========= ====================                      ====== ======= ====================                      ====== ========= ====================                      ====== ====== ====================                      ========== =========                      ========== =========
                                                                                                                                                                                                                                                                                                                            
       Change                                          4.0 %                                                    2.5 %                                                      4.7 %                                                   4.0 %
                                                                                                                                                                                                                                                                                                                            
Note: Same store operating expenses and same store NOI no longer
include an allocation of property management expenses either in the
current or comparable periods. The Company has added guidance on
property management expense on page 26 of this release. See pages 27
through 30 for the definitions of non-GAAP financial measures and
other terms, such as Average Rental Rate, NOI, Physical Occupancy
and Turnover.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Third Quarter 2016 vs. Third Quarter 2015
                                                                                                                                                                                                                                     Same Store Results/Statistics by Market
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                           Increase (Decrease) from Prior Year’s Quarter
                                                                                                                                                                                                                                                                                              ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                 Q3 2016
                                                                                                                  Q3 2016                                         Q3 2016                                       Weighted
                                                                                                                   % of                                           Average                                        Average                                                                                                                                                                                                           Average
                                                                       Apartment                                  Actual                                          Rental                                        Physical                                   Q3 2016                                                                                                                                                                 Rental                                   Physical
             Markets/Metro Areas                                         Units                                      NOI                                            Rate                                        Occupancy %                                Turnover                                  Revenues                                  Expenses                                     NOI                                      Rate                                    Occupancy                                 Turnover
-------------------------------------------                      --------------------                      ---------------------                     --------------------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Los Angeles                                                                    13,950                            17.1 %                                                 $      2,352                            96.2 %                                    19.0 %                                     5.2 %                                     3.9 %                                     5.7 %                                     4.9 %                                     0.1 %                                    (0.4 %)
San Diego                                                                       3,505                             4.1 %                                                        2,189                            96.6 %                                    19.1 %                                     5.0 %                                     2.2 %                                     6.1 %                                     4.8 %                                     0.1 %                                    (0.7 %)
Orange County                                                                   3,490                             3.9 %                                     1,997                            96.2 %                                    17.2 %                                     5.9 %                                     2.0 %                                     7.2 %                                     5.5 %                                     0.4 %                                    (0.8 %)
                                                                 --------------------                      ---------- ---------                      -------------------- ----------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------
Subtotal - Southern California                                    20,945                            25.1 %                                                        2,266                            96.3 %                                    18.7 %                                     5.2 %                                     3.4 %                                     6.0 %                                     5.0 %                                     0.2 %                                    (0.6 %)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Washington DC                                                                  15,475                            18.8 %                                                        2,352                            96.1 %                                    17.0 %                                     1.6 %                                     3.6 %                                     0.7 %                                     1.5 %                                    (0.1 %)                                    0.0 %
New York                                                                       10,007                            18.6 %                                                        3,702                            96.2 %                                    13.6 %                                     1.3 %                                    12.1 %                                    (4.0 %)                                    1.5 %                                    (0.5 %)                                   (0.3 %)
San Francisco                                                                  10,846                            17.6 %                                                        2,914                            95.6 %                                    19.9 %                                     5.0 %                                     5.5 %                                     4.9 %                                     5.9 %                                    (0.8 %)                                    0.7 %
Boston                                                                          7,338                            11.5 %                                                        2,753                            95.9 %                                    17.7 %                                     1.9 %                                     2.6 %                                     1.5 %                                     2.3 %                                    (0.3 %)                                   (0.8 %)
Seattle                                                                         6,298                             7.7 %                                                        2,155                            95.9 %                                    16.3 %                                     6.7 %                                     7.6 %                                     6.4 %                                     5.1 %                                     0.5 %                                    (3.0 %)
All Other Markets                                                               1,320                             0.7 %                                                        1,261                            96.0 %                                    16.7 %                                     6.5 %                                    (5.9 %)                                   16.9 %                                     6.4 %                                     0.1 %                                     1.2 %
                                                                                                                                                                                                                                                                                                                   
                                                                 --------------------                      ---------------------                     --------------------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------
Total                                                                          72,229                           100.0 %                                                 $      2,602                            96.0 %                                    17.5 %                                     3.4 %                                     5.9 %                                     2.4 %                                     3.4 %                                    (0.2 %)                                   (0.4 %)
                                                                 ====================                      ========== =========                      ==================== ==========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Third Quarter 2016 vs. Second Quarter 2016
                                                                                                                                                                                                                                     Same Store Results/Statistics by Market
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                              Increase (Decrease) from Prior Quarter
                                                                                                                                                                                                                                                                                              ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                 Q3 2016
                                                                                                                  Q3 2016                                         Q3 2016                                       Weighted
                                                                                                                   % of                                           Average                                        Average                                                                                                                                                                                                           Average
                                                                       Apartment                                  Actual                                          Rental                                        Physical                                   Q3 2016                                                                                                                                                                 Rental                                   Physical
             Markets/Metro Areas                                         Units                                      NOI                                            Rate                                        Occupancy %                                Turnover                                  Revenues                                  Expenses                                     NOI                                      Rate                                    Occupancy                                 Turnover
-------------------------------------------                      --------------------                      ---------------------                     --------------------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Los Angeles                                                                    14,336                            17.1 %                                                 $      2,352                            96.2 %                                    19.0 %                                     1.8 %                                     5.5 %                                     0.3 %                                     1.6 %                                     0.1 %                                     1.9 %
San Diego                                                                       3,505                             4.1 %                                                        2,189                            96.6 %                                    19.1 %                                     2.4 %                                     2.8 %                                     2.2 %                                     2.2 %                                     0.1 %                                     2.4 %
Orange County                                                                   3,684                             3.9 %                                     2,012                            96.1 %                                    17.1 %                                     2.1 %                                    11.2 %                                    (0.7 %)                                    2.3 %                                    (0.3 %)                                    2.7 %
                                                                 --------------------                      ---------- ---------                      -------------------- ----------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------
Subtotal - Southern California                                    21,525                            25.1 %                                                        2,267                            96.2 %                                    18.7 %                                     1.9 %                                     5.8 %                                     0.4 %                                     1.8 %                                     0.0 %                                     2.2 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
New York                                                                       10,396                            19.1 %                                                        3,742                            96.2 %                                    13.6 %                                     0.9 %                                     7.8 %                                    (2.5 %)                                    0.6 %                                    (0.2 %)                                    2.2 %
Washington DC                                                                  15,475                            18.3 %                                                        2,352                            96.1 %                                    17.0 %                                     1.0 %                                     6.5 %                                    (1.3 %)                                    1.2 %                                    (0.1 %)                                    3.1 %
San Francisco                                                                  11,019                            17.4 %                                                        2,920                            95.6 %                                    19.9 %                                     1.3 %                                     3.5 %                                     0.6 %                                     2.0 %                                    (0.7 %)                                    4.0 %
Boston                                                                          7,338                            11.2 %                                                        2,753                            95.9 %                                    17.7 %                                     0.7 %                                     7.0 %                                    (1.6 %)                                    1.5 %                                    (0.3 %)                                    4.8 %
Seattle                                                                         6,794                             8.2 %                                                        2,146                            95.9 %                                    16.3 %                                     3.7 %                                    (0.8 %)                                    5.5 %                                     2.4 %                                     0.3 %                                    (1.0 %)
All Other Markets                                                               1,320                             0.7 %                                                        1,261                            96.0 %                                    16.7 %                                     1.4 %                                     4.1 %                                    (0.3 %)                                    1.9 %                                    (0.6 %)                                    3.7 %
                                                                                                                                                                                                                                                                                                                   
                                                                 --------------------                      ---------------------                     --------------------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------
Total                                                                          73,867                           100.0 %                                                 $      2,609                            96.0 %                                    17.4 %                                     1.4 %                                     5.7 %                                    (0.3 %)                                    1.5 %                                    (0.2 %)                                    2.6 %
                                                                 ====================                      ========== =========                      ==================== ==========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     September YTD 2016 vs. September YTD 2015
                                                                                                                                                                                                                                     Same Store Results/Statistics by Market
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                Increase (Decrease) from Prior Year
                                                                                                                                                                                                                                                                                              ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                              Sept. YTD 16
                                                                                                               Sept. YTD 16                                    Sept. YTD 16                                     Weighted
                                                                                                                   % of                                           Average                                        Average                                                                                                                                                                                                           Average
                                                                       Apartment                                  Actual                                          Rental                                        Physical                                Sept. YTD 16                                                                                                                                                               Rental                                   Physical
             Markets/Metro Areas                                         Units                                      NOI                                            Rate                                        Occupancy %                                Turnover                                  Revenues                                  Expenses                                     NOI                                      Rate                                    Occupancy                                 Turnover
-------------------------------------------                      --------------------                      ---------------------                     --------------------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Los Angeles                                                                    13,698                            16.7 %                                                 $      2,295                            96.1 %                                    47.8 %                                     5.8 %                                     2.2 %                                     7.4 %                                     5.5 %                                     0.2 %                                    (0.1 %)
San Diego                                                                       3,505                             4.1 %                                                        2,149                            96.3 %                                    49.8 %                                     5.6 %                                     2.4 %                                     6.9 %                                     5.4 %                                     0.2 %                                    (1.0 %)
Orange County                                                                   3,490                             3.9 %                                     1,954                            96.3 %                                    41.4 %                                     5.9 %                                     0.7 %                                     7.7 %                                     5.6 %                                     0.3 %                                    (1.7 %)
                                                                 --------------------                      ---------- ---------                      -------------------- ----------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------
Subtotal - Southern California                                    20,693                            24.7 %                                                        2,212                            96.2 %                                    47.1 %                                     5.8 %                                     2.0 %                                     7.4 %                                     5.5 %                                     0.2 %                                    (0.5 %)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
New York                                                                       10,007                            19.2 %                                                        3,671                            96.4 %                                    33.7 %                                     2.1 %                                     4.6 %                                     0.8 %                                     2.2 %                                    (0.2 %)                                    0.8 %
Washington DC                                                                  15,475                            19.1 %                                                        2,326                            96.0 %                                    40.4 %                                     1.2 %                                     0.8 %                                     1.4 %                                     1.0 %                                     0.0 %                                     0.8 %
San Francisco                                                                  10,846                            17.7 %                                                        2,863                            96.1 %                                    47.7 %                                     7.4 %                                     4.2 %                                     8.4 %                                     7.9 %                                    (0.4 %)                                    1.1 %
Boston                                                                          7,136                            11.4 %                                                        2,705                            95.8 %                                    41.6 %                                     2.6 %                                    (2.6 %)                                    4.8 %                                     2.8 %                                    (0.4 %)                                    1.1 %
Seattle                                                                         6,011                             7.2 %                                                        2,101                            95.6 %                                    45.5 %                                     6.2 %                                     7.9 %                                     5.5 %                                     5.7 %                                     0.1 %                                    (3.5 %)
All Other Markets                                                               1,320                             0.7 %                                                        1,235                            96.4 %                                    38.9 %                                     5.6 %                                    (5.1 %)                                   14.7 %                                     5.3 %                                     0.3 %                                    (0.8 %)
                                                                                                                                                                                                                                                                                                                   
                                                                 --------------------                      ---------------------                     --------------------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------
Total                                                                          71,488                           100.0 %                                                 $      2,562                            96.1 %                                    43.0 %                                     4.0 %                                     2.5 %                                     4.7 %                                     4.0 %                                     0.0 %                                     0.1 %
                                                                 ====================                      ========== =========                      ==================== ==========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                              Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                            
                                                                                                                                   Third Quarter 2016 vs. Third Quarter 2015
                                                                                                                         Same Store Operating Expenses for 72,229 Same Store Apartment
                                                                                                                                                     Units
                                                                                                                                               ($ in thousands)
                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                              % of Actual
                                                                                                                                                                                                                                                                                                Q3 2016
                                                                            Actual                                               Actual                                                          $                                                       %                                     Operating
                                                                            Q3 2016                                              Q3 2015                                                      Change                                                  Change                                   Expenses
                                                               --------------------------------                     --------------------------------                     -------------------------------------------------                     ---------------------                     ---------------------
                                                                                                                                                                                                                                                                                          
Real estate taxes                                                                 $     68,753                                         $     63,565                                         $  5,188                                                  8.2 %                                    40.7 %
On-site payroll (1)                                                                     38,240                                               35,557                                            2,683                                                  7.5 %                                    22.7 %
Utilities (2)                                                                           23,480                                               23,901                                             (421 )                                               (1.8 %)                                   13.9 %
Repairs and maintenance (3)                                                             23,049                                               22,098                                              951                                                  4.3 %                                    13.7 %
Insurance                                                                                4,359                                                4,211                                              148                                                  3.5 %                                     2.6 %
Leasing and advertising                                                                  3,380                                                2,254                                            1,126                                                 50.0 %                                     2.0 %
Other on-site operating expenses (4)                                  7,445                             7,757                          (312 )                                               (4.0 %)                                    4.4 %
                                                               -------------------- ----------                      -------------------- ----------                      -------------------- ------ --------------------                      ---------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                                                          
Same store operating expenses                                                     $    168,706                                         $    159,343                                         $  9,363                               5.9 %                                   100.0 %
                                                               ==================== ==========                      ==================== ==========                      ==================== ====== ====================                      ========== =========                      ========== =========
                                                                         
-------------------- -------------------- -------------------- ---------------------------------------------------- ---------------------------------------------------- --------------------------------------------------------------------- ----------------------------------------- ---------------------
                                                                                                                                                                                                                                                                                          
                                                                                                                                   September YTD 2016 vs. September YTD 2015
                                                                                                                         Same Store Operating Expenses for 71,488 Same Store Apartment
                                                                                                                                                     Units
                                                                                                                                                $ in thousands
                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                              % of Actual
                                                                                                                                                                                                                                                                                               YTD 2016
                                                                            Actual                                               Actual                                                          $                                                       %                                     Operating
                                                                           YTD 2016                                             YTD 2015                                                      Change                                                  Change                                   Expenses
                                                               --------------------------------                     --------------------------------                     -------------------------------------------------                     ---------------------                     ---------------------
                                                                                                                                                                                                                                                                                          
Real estate taxes                                                                 $    200,022                                         $    188,669                                         $ 11,353                                                  6.0 %                                    41.3 %
On-site payroll (1)                                                                    109,028                                              106,079                                            2,949                                                  2.8 %                                    22.5 %
Utilities (2)                                                                           67,836                                               72,091                                           (4,255 )                                               (5.9 %)                                   14.0 %
Repairs and maintenance (3)                                                             63,126                                               62,534                                              592                                                  0.9 %                                    13.0 %
Insurance                                                                               12,910                                               12,440                                              470                                                  3.8 %                                     2.7 %
Leasing and advertising                                                                  7,518                                                6,351                                            1,167                                                 18.4 %                                     1.5 %
Other on-site operating expenses (4)                                 24,203                            24,766                          (563 )                                               (2.3 %)                                    5.0 %
                                                               -------------------- ----------                      -------------------- ----------                      -------------------- ------ --------------------                      ---------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                                                          
Same store operating expenses                                                     $    484,643                                         $    472,930                                         $ 11,713                               2.5 %                                   100.0 %
                                                               ==================== ==========                      ==================== ==========                      ==================== ====== ====================                      ========== =========                      ========== =========
                                                                                                                                                                                                                                                                                          
Note: Same store operating expenses no longer include an allocation
of property management expenses either in the current or comparable
periods. The Company has added guidance on property management
expense on page 26 of this release.
                                                                                                                                                                                                                                                                                          
         (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 and maintenance costs.
                                                                                                                                                                                                                                                                                          
         (4)         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.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                  
                                                                                                        Debt Summary as of September 30, 2016
                                                                                                                  ($ in thousands)
                                                                                                                                                                                                                                
                                                                                                                                                                                                                                     Weighted
                                                                                                                                                                                                 Weighted                             Average
                                                                                                                                                                               Average                           Maturities
                                                                                           Amounts (1)                                              % of Total                                   Rates (1)                            (years)
                                                                              ----------------------------------                       ----------------------------------                       --------                       --------------------
                                                                                                                                                                                                                                
Secured                                                                                          $      4,138,301                                48.7 %                                         4.34 %                                          6.7
Unsecured                                                                            4,360,486                                51.3 %                                         4.54 %                                         10.3
                                                                              -------------------- --------------                      -------------- --------------------                      ---- ----                      --------------------
                                                                                                                                                                                                                                
      Total                                                                                      $      8,498,787                               100.0 %                                         4.44 %                                          8.5
                                                                              ==================== ==============                      ============== ====================                      ==== ====                      --------------------
                                                                                                                                                                                                                                
Fixed Rate Debt:
   Secured - Conventional                                                           $      3,503,487                                41.2 %                                         4.95 %                                          5.1
   Unsecured - Public                                                   3,904,035                                46.0 %                                         4.96 %                                         11.2
                                                                              -------------------- --------------                      -------------- --------------------                      ---- ----                      --------------------
                                                                                                                                                                                                                                
                                                                                     7,407,522                                87.2 %                                         4.96 %                                          8.3
      Fixed Rate Debt
                                                                              -------------------- --------------                      -------------- --------------------                      ---- ----                      --------------------
                                                                                                                                                                                                                                
Floating Rate Debt:
   Secured - Conventional                                                                      7,041                                 0.1 %                                         0.50 %                                         15.6
   Secured - Tax Exempt                                                                      627,773                                 7.4 %                                         0.98 %                                         14.5
   Unsecured - Public (2)                                                                    456,451                                 5.3 %                                         1.22 %                                          2.8
   Unsecured - Revolving Credit Facility                                              --                      --                                           1.34 %                                          1.5
   Unsecured - Commercial Paper Program (3)                        --                      --                        0.96 %                               --
                                                                              -------------------- --------------                      -------------- --------------------                      ---- ----                      --------------------
                                                                                                                                                                                                                                
      Floating Rate Debt                                                             1,091,265                                12.8 %                                         1.07 %                                          9.9
                                                                              -------------------- --------------                      -------------- --------------------                      ---- ----                      --------------------
                                                                                                                                                                                                                                
Total                                                                                            $      8,498,787                               100.0 %                                         4.44 %                                          8.5
                                                                              ==================== ==============                      ============== ====================                      ==== ====                      ====================
 
(1) Net of the effect of any derivative instruments. Weighted
average rates are for the nine months ended September 30, 2016.
 
(2) Fair value interest rate swaps convert the $450.0 million 2.375%
notes due July 1, 2019 to a floating interest rate of 90-Day LIBOR
plus 0.61%.
 
(3) As of September 30, 2016, there was no commercial paper
outstanding.
 
Note: The Company capitalized interest of approximately $41.7
million and $45.8 million during the nine months ended September 30,
2016 and 2015, respectively. The Company capitalized interest of
approximately $13.3 million and $15.4 million during the quarters
ended September 30, 2016 and 2015, respectively.
 
Note: The Company recorded approximately $18.9 million and $5.8
million of net debt discount/deferred derivative settlement
amortization as additional interest expense during the nine months
ended September 30, 2016 and 2015, respectively. The Company
recorded approximately $5.1 million and $2.7 million of net debt
discount/deferred derivative settlement amortization as additional
interest expense during the quarters ended September 30, 2016 and
2015, respectively.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                Debt Maturity Schedule as of September 30, 2016
                                                                                                                                                                                               ($ in thousands)
                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                        Weighted                                           Weighted
                                                                                                                                                                                                                                                                                                                                      Average Rates                                         Average
                                                                      Fixed                                                                    Floating                                                                                                                                                                                 on Fixed                                           Rates on
          Year                                                      Rate (1)                                                                   Rate (1)                                                                      Total                                                    % of Total                                      Rate Debt (1)                                     Total Debt (1)
------------------------                      ----------------------------------------------------                     ---------------------------------------------------------                     ----------------------------------------------------                     ---------------------------                     ----------------------------                     --------------------------------
                                                                                                                                                                                                                                                                                                                                                                                
          2016                                                   $     1,938                                                              $ --                                                              $     1,938                                             0.0 %                                           4.68 %                                               4.68 %
          2017                                                       605,397                                                                           388                                                                  605,785                                             7.0 %                                           6.19 %                                               6.18 %
          2018                                                        83,695                                                                        97,550                                                                  181,245                                             2.1 %                                           5.57 %                                               3.18 %
          2019                                                       807,680                                                                       478,867                                                                1,286,547                                            15.0 %                                           5.47 %                                               3.89 %
          2020                                                     1,679,590                                                                           686                                                                1,680,276                                            19.5 %                                           5.49 %                                               5.49 %
          2021                                                       946,257                                                                           725                                                                  946,982                                            11.0 %                                           4.63 %                                               4.63 %
          2022                                                       266,447                                                                           766                                                                  267,213                                             3.1 %                                           3.27 %                                               3.26 %
          2023                                                     1,327,965                                                                           809                                                                1,328,774                                            15.5 %                                           3.74 %                                               3.74 %
          2024                                                         2,498                                                                           854                                                                    3,352                                             0.0 %                                           4.97 %                                               3.94 %
          2025                                                       452,625                                                                           903                                                                  453,528                                             5.3 %                                           3.38 %                                               3.38 %
          2026+                                 1,271,816                                 575,470                          1,847,286                         21.5 %                                           4.76 %                                               3.55 %
                                              -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------                      ----- --------------------                      ------ --------------------                      ---------- --------------------
        Subtotal                                                   7,445,908                                                                     1,157,018                                                                8,602,926                                           100.0 %                                           4.79 %                                               4.29 %
Deferred Financing Costs                                             (30,658 )                                                                      (9,272 )                                                                (39,930 )                                           N/A                                              N/A                                                  N/A
   Premium/(Discount)                              (7,728 )                                                  (56,481 )                                             (64,209 )                                           N/A                           N/A                               N/A  
                                              -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------                      ----- --------------------                      ------ --------------------                      ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                
          Total                                                  $ 7,407,522                                           $      1,091,265                                           $ 8,498,787                        100.0 %                                           4.79 %                                               4.29 %
                                              ==================== ========= ====================                      ==================== ============== ====================                      ==================== ========= ====================                      ===== ====================                      ====== ====================                      ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                
(1) Net of the effect of any derivative instruments. Weighted
average rates are as of September 30, 2016.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                            Equity Residential
                                                                                              Unsecured Debt Summary as of September 30, 2016
                                                                                                             ($ in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   
                                                                                                    Interest                                     Due
                                                                                                      Rate                                      Date                                                       Amount
                                                                                              ---------------------                     --------------------                      ---------------------------------------------------------
                                                                                                                                                                                   
                     Fixed Rate Notes:
                                                                                                   5.750 %                                    06/15/17                                               $        394,077
                                                                                                   7.125 %                                    10/15/17                                                        103,898
                                                                                                   4.750 %                                    07/15/20                                                        600,000
                                                                                                   4.625 %                                    12/15/21                                                        750,000
                                                                                                   3.000 %                                    04/15/23                                                        500,000
                                                                                                   3.375 %                                    06/01/25                                                        450,000
                                                                                                   7.570 %                                    08/15/26                                                         92,025
                                                                                                   4.500 %                                    07/01/44                                                        750,000
                                                                                                   4.500 %                                    06/01/45                                                        300,000
                     Deferred Financing Costs and Unamortized (Discount)                                                                                                                   (35,965 )
                                                                                                                                                                                  -------------------- -------------- --------------------
                                                                                                                                                                                   
                                                                                                                                                                                         3,904,035  
                                                                                                                                                                                  -------------------- -------------- --------------------
                     Floating Rate Notes:
                                                                                                       (1)                                    07/01/19                                                        450,000
                     Fair Value Derivative Adjustments                                                 (1)                                    07/01/19                                                          8,218
                     Deferred Financing Costs and Unamortized (Discount)                                                                                                                    (1,767 )
                                                                                                                                                                                  -------------------- -------------- --------------------
                                                                                                                                                                                   
                                                                                                                                                                                           456,451  
                                                                                                                                                                                  -------------------- -------------- --------------------
                                                                                                                                                                                   
                     Line of Credit and Commercial Paper:
                     Revolving Credit Facility (2) (3)                                             LIBOR+0.95%                                04/01/18                                                 --
                     Commercial Paper Program (2) (4)                                                                                                                               --  
                                                                                                                                                                                  -------------------- -------------- --------------------
                                                                                                                                                                                   
                                                                                                                                                                                    --  
                                                                                                                                                                                  -------------------- -------------- --------------------
                                                                                                                                                                                   
                     Total Unsecured Debt                                                                                                                                                            $      4,360,486  
                                                                                                                                                                                  ==================== ============== ====================
     
(1)                      Fair value interest rate swaps convert the $450.0 million 2.375%
                         notes due July 1, 2019 to a floating interest rate of 90-Day LIBOR
                         plus 0.61%.
                          
(2)                      Facility/program is private. All other unsecured debt is public.
                          
(3)                      The interest rate on advances under the $2.5 billion revolving
                         credit facility maturing April 1, 2018 will generally be LIBOR plus
                         a spread (currently 0.95%) and an annual facility fee (currently 15
                         basis points). Both the spread and the facility fee are dependent on
                         the credit rating of the Company’s long-term debt. As of September
                         30, 2016, there was approximately $2.48 billion available on this
                         facility (net of $24.6 million which was restricted/dedicated to
                         support letters of credit).
                          
(4)                      The Company may borrow up to a maximum of $500.0 million on the
                         commercial paper program subject to market conditions. The notes
                         bear interest at various floating rates with a weighted average of
                         0.96% for the nine months ended September 30, 2016. No amounts were
                         outstanding at September 30, 2016.
 
-------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Equity Residential
-------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 
                                                             Selected Unsecured Public Debt Covenants
                                                                                                                            
                                                                                                        September 30,                               June 30,
                                                                                                            2016                                      2016
                                                                                                    --------------------                      --------------------
                                                                                                                                               
                     Total Debt to Adjusted Total Assets (not to exceed 60%)                                32.8%                                     33.1%
                                                                                                                                               
                     Secured Debt to Adjusted Total Assets (not to exceed 40%)                              16.0%                                     16.2%
                                                                                                                                               
                     Consolidated Income Available for Debt Service to
                       Maximum Annual Service Charges
                       (must be at least 1.5 to 1)                                                          3.88                                      3.86
                                                                                                                                               
                     Total Unsecured Assets to Unsecured Debt                                              447.4%                                    442.6%
                       (must be at least 150%)
       
Note:                      These selected covenants relate to ERP Operating Limited
                           Partnership’s ("ERPOP") outstanding unsecured public debt, which
                           represent the Company’s most restrictive covenants. Equity
                           Residential is the general partner of ERPOP.
 
----------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Selected Credit Ratios
                                 
                                                                                         September 30,                               June 30,
                                                                                             2016                                      2016
                                                                                     --------------------                      --------------------
                                                                                                                                
                           Total debt to Normalized EBITDA                                   5.20x                                     5.00x
                                                                                                                                
                           Net debt to Normalized EBITDA                                     4.85x                                     4.67x
                                                                                                                                
                           Unencumbered NOI as a % of total NOI                              70.9%                                     71.0%
                                                                                                                                
Note:                      See page 24 for the Normalized EBITDA reconciliations.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                      Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                
                                                                                                                                                                          Capital Structure as of September 30, 2016
                                                                                                                                                              (Amounts in thousands except for share/unit and per share amounts)
                                                                                                                                                                                                                                                                                                                                                                          
                       Secured Debt                                                                                                                                                                                                                                                          $  4,138,301                                     48.7%
                       Unsecured Debt                                                                                                                                                                                                                                        4,360,486                                     51.3%
                                                                                                                                                                                                                                                                          -------------------- ----------                      --------------------
                                                                                                                                                                                                                                                                                                                                                                          
                     Total Debt                                                                                                                                                                                                                                                                 8,498,787                                    100.0%                                     25.8%
                                                                                                                                                                                                                                                                                                                                                                          
                       Common Shares (includes Restricted Shares)                                                                                                                   365,657,065                                                96.2%
                       Units (includes OP Units and Restricted Units)                                                                                             14,627,745                              3.8%
                                                                                                                                                               -------------------- -----------                      -------------------- ----------
                                                                                                                                                                                                                                                                                                                                                                          
                     Total Shares and Units                                                                                                                                         380,284,810                                               100.0%
                     Common Share Price at September 30, 2016                                                                                                                     $       64.33
                                                                                                                                                               -------------------- -----------
                                                                                                                                                                                                                                                                                               24,463,722                                    99.8 %
                     Perpetual Preferred Equity (see below)                                                                                                                                                                                                                     37,280                                     0.2 %
                                                                                                                                                                                                                                                                          -------------------- ----------                      --------------------
                                                                                                                                                                                                                                                                                                                                                                          
                     Total Equity                                                                                                                                                                                                                                                              24,501,002                                   100.0 %                                    74.2 %
                                                                                                                                                                                                                                                                                                                                                                          
                     Total Market Capitalization                                                                                                                                                                                                                                             $ 32,999,789                                                                             100.0 %
                                                                             
-------------------- -------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----------------------------------------------------- ---------------------------------------------------- ---------------------------------------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                      Perpetual Preferred Equity as of September 30, 2016
                                                                                                                                                                 (Amounts in thousands except for share and per share amounts)
                                                                                                                                
                                                                                                                                                                                                                                  Annual                                               Annual
                                                                                Redemption                                Outstanding                                     Liquidation                                            Dividend                                             Dividend
                                  Series                                           Date                                     Shares                                           Value                                               Per Share                                             Amount
                     --------------------------------                      --------------------                      --------------------                      ---------------------------------                     --------------------------------                     --------------------------------
                                                                                                                                                                                                                                                                                                                                                                          
                     Preferred Shares:
                       8.29% Series K                                            12/10/26                                         745,600                                         $      37,280                                         $      4.145                                         $      3,091
                                                                                                                     --------------------                      -------------------- -----------                                                                           -------------------- ----------
                                                                                                                                                                                                                                                                                                                                                                          
                     Total Perpetual Preferred Equity                                                                             745,600                                         $      37,280                                                                                              $      3,091
 
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             Equity Residential
                                                                                            Common Share and Unit
                                                                                    Weighted Average Amounts Outstanding
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           
                                                                                      YTD Q3 2016                      YTD Q3 2015                        Q3 2016                              Q3 2015
                                                                                     -----------                      -----------                      -----------                      --------------------
                                                                                                                                                                                         
Weighted Average Amounts Outstanding for Net Income Purposes:
  Common Shares - basic                                                              364,916,765                      363,386,211                      365,109,088                               363,578,666
  Shares issuable from assumed conversion/vesting of:
    - OP Units                                                                        13,827,914                       13,583,959                       13,898,660                                13,568,180
    - long-term compensation shares/units                                              3,539,383                        3,452,974                        3,365,546                                 3,516,096
                                                                                     -----------                      -----------                      -----------                      --------------------
                                                                                                                                                                                         
  Total Common Shares and Units - diluted                                            382,284,062                      380,423,144                      382,373,294                               380,662,942
                                                                                     ===========                      ===========                      ===========                      ====================
                                                                                                                                                                                         
Weighted Average Amounts Outstanding for FFO and Normalized FFO
Purposes:
  Common Shares - basic                                                              364,916,765                      363,386,211                      365,109,088                               363,578,666
  OP Units - basic                                                                    13,827,914                       13,583,959                       13,898,660                                13,568,180
                                                                                     -----------                      -----------                      -----------                      --------------------
                                                                                                                                                                                         
  Total Common Shares and OP Units - basic                                           378,744,679                      376,970,170                      379,007,748                               377,146,846
  Shares issuable from assumed conversion/vesting of:
    - long-term compensation shares/units                                              3,539,383                        3,452,974                        3,365,546                                 3,516,096
                                                                                     -----------                      -----------                      -----------                      --------------------
                                                                                                                                                                                         
  Total Common Shares and Units - diluted                                            382,284,062                      380,423,144                      382,373,294                               380,662,942
                                                                                     ===========                      ===========                      ===========                      ====================
                                                                                                                                                                                         
Period Ending Amounts Outstanding:
  Common Shares (includes Restricted Shares)                                         365,657,065                      364,140,040
  Units (includes OP Units and Restricted Units)                                      14,627,745                       14,455,727
                                                                                     -----------                      -----------
                                                                                                                                                                                         
  Total Shares and Units                                                             380,284,810                      378,595,767
                                                                                     ===========                      ===========
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   Equity Residential
                                                                                    Partially Owned Entities as of September 30, 2016
                                                                          (Amounts in thousands except for property and apartment unit amounts)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        
                                                                                                           Consolidated                                                             Unconsolidated
                                                                                        --------------------------------------------------                     ---------------------------------------------------------
                                                                                                                                                                
Total properties                                                                               18                                       2  
                                                                                        -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                
Total apartment units                                                                       3,471                                     945  
                                                                                        -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                
Operating information for the nine months ended 9/30/16 (at 100%):
  Operating revenue                                                                                        $  70,123                                                              $         23,844
  Operating expenses                                                                       17,183                                   8,368  
                                                                                        -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                
  Net operating income                                                                                        52,940                                                                        15,476
  Property management                                                                                          2,476                                                                           636
  General and administrative/other                                                                                50                                                                            49
  Depreciation                                                                             16,161                                  12,001  
                                                                                        -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                
  Operating income                                                                                            34,253                                                                         2,790
  Interest and other income                                                                                       47                                                                --
  Other expenses                                                                                                  (7 )                                                              --
  Interest:
    Expense incurred, net                                                                                    (11,073 )                                                                      (6,217 )
    Amortization of deferred financing costs                                                 (289 )                                           --  
                                                                                        -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                
  Income (loss) before income and other taxes and (loss)
   from investments in unconsolidated entities                                                                22,931                                                                        (3,427 )
  Income and other tax (expense) benefit                                                                         (44 )                                                                         (13 )
  (Loss) from investments in unconsolidated entities                                       (1,091 )                                           --  
                                                                                        -------------------- ------- --------------------                      -------------------- -------------- --------------------
  Net income (loss)                                                                                        $  21,796                                           $         (3,440 )
                                                                                        ==================== ======= ====================                      ==================== ============== ====================
                                                                                                                                                                
Debt - Secured (1):
    EQR Ownership (2)                                                                                      $ 243,145                                                              $         29,084
    Noncontrolling Ownership                                                               75,282                                 116,339  
                                                                                        -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                
Total (at 100%)                                                                                            $ 318,427                                           $        145,423  
                                                                                        ==================== ======= ====================                      ==================== ============== ====================
       
  (1)                      All debt is non-recourse to the Company.
                            
  (2)                      Represents the Company’s current equity ownership interest.
                            
Note:                      The above table excludes the Company’s interests in unconsolidated
                           joint ventures established in connection with the acquisition of
                           certain real estate related assets from Archstone Enterprise LP
                           (such assets are referred to herein as "Archstone"). These ventures
                           owned certain non-core Archstone assets and succeeded to certain
                           residual Archstone liabilities/litigation, as well as responsibility
                           for tax protection arrangements and third-party preferred interests
                           in former Archstone subsidiaries. The preferred interests had an
                           aggregate liquidation value of $41.3 million at September 30, 2016.
                           The ventures are owned 60% by the Company.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Development and Lease-Up Projects as of September 30, 2016
                                                                                                                                                                                                                                     (Amounts in thousands except for project and apartment unit amounts)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                    Total Book                                                                                                                                                                                                     
                                                                                                                         No. of                                           Total                                                Total                                                Value Not                                                                                                                                                                                                                                                                                         Estimated                            Estimated
                                                                                                                        Apartment                                        Capital                                            Book Value                                              Placed in                                                  Total                                                         Percentage                                                                 Percentage                                                Percentage                         Completion                          Stabilization
Projects                                                                        Location                                  Units                        Cost                             to Date                             Service                                Debt                                        Completed                                                Leased                                Occupied          Date              Date
------------------------------------------------------                     -----------------                      -------------------- -------------------- ---------------------------------------------------- ---------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- ------------------------------------------------------------------------ ----------------------------------------------------------------------------- ------------------------------------- ---------- -------------------- --------------------
 
Projects Under Development:
----------------------------------------------------
One Henry Adams                                                            San Francisco, CA                                       241                                         $    172,337                                         $    150,049                                         $        150,049                                         $ --                                                  92 %                                                                           3 %                                         --                          Q4 2016                              Q4 2017
The Alton (formerly Millikan)                                              Irvine, CA                                              344                                              102,331                                               97,031                                                   97,031                                           --                                                  86 %                                                                           2 %                                         --                          Q1 2017                              Q3 2017
455 I St                                                                   Washington, DC                                          174                                               73,157                                               52,291                                                   52,291                                           --                                                  60 %                                                              --                                           --                          Q3 2017                              Q2 2018
855 Brannan (formerly 801 Brannan)                                         San Francisco, CA                                       449                                              304,035                                              174,190                                                  174,190                                           --                                                  53 %                                                              --                                           --                          Q3 2017                              Q1 2019
2nd & Pine                                                                 Seattle, WA                                             398                                              215,787                                              156,240                                                  156,240                                           --                                                  70 %                                                              --                                           --                          Q3 2017                              Q2 2019
Cascade                                                                    Seattle, WA                                             477                                              176,378                                              108,753                                                  108,753                                           --                                                  59 %                                                              --                                           --                          Q3 2017                              Q2 2019
100 K Street                                                               Washington, DC                                          222                                               88,023                                               22,514                                                   22,514                                           --                                                   3 %                                                              --                                           --                          Q4 2018                              Q4 2019
                                                                                                                                                                                                                                                    
                                                                                                                  --------------------                      --------------------------------                     --------------------------------                     ------------------------------------                     ------------------------------------
Projects Under Development                                                                                                       2,305                         1,132,048                           761,068                               761,068                        --
                                                                                                                  --------------------                      -------------------- ----------                      -------------------- ----------                      -------------------- --------------                      -------------------- --------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Completed Not Stabilized (1):
----------------------------------------------------
Vista 99 (formerly Tasman)                                                 San Jose, CA                                            554                                              208,923                                              202,161                                           --                                           --                                                                                                                                94 %                                                     93 %                       Completed                             Q4 2016
Potrero 1010                                                               San Francisco, CA                                       453                                              224,474                                              217,296                                           --                                           --                                                                                                                                85 %                                                     83 %                       Completed                             Q1 2017
Altitude (formerly Village at Howard Hughes)                               Los Angeles, CA                                         545                                              193,231                                              186,930                                           --                                           --                                                                                                                                39 %                                                     36 %                       Completed                             Q2 2017
340 Fremont (formerly Rincon Hill)                                         San Francisco, CA                                       348                                              287,454                                              285,149                                           --                                           --                                                                                                                                61 %                                                     56 %                       Completed                             Q1 2018
                                                                                                                                                                                                                                                    
                                                                                                                  --------------------                      --------------------------------                     --------------------------------                     ------------------------------------                     ------------------------------------
Projects Completed Not Stabilized                                                                                                1,900                           914,082                           891,536                        --                        --
                                                                                                                  --------------------                      -------------------- ----------                      -------------------- ----------                      -------------------- --------------                      -------------------- --------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Completed and Stabilized During the
Quarter:
----------------------------------------------------
Odin (formerly Tallman)                                                    Seattle, WA                                             301                                               80,677                                               80,509                                           --                                           --                                                                                                                                99 %                                                     98 %                       Completed                           Stabilized
Azure (at Mission Bay)                                                     San Francisco, CA                                       273                                              185,290                                              185,111                                           --                                           --                                                                                                                                97 %                                                     96 %                       Completed                           Stabilized
170 Amsterdam (2)                                                          New York, NY                                            236                                              111,932                                              111,859                                           --                                           --                                                                                                                                92 %                                                     91 %                       Completed                           Stabilized
                                                                                                                                                                                                                                                    
                                                                                                                  --------------------                      --------------------------------                     --------------------------------                     ------------------------------------                     ------------------------------------
Projects Completed and Stabilized During the Quarter                                                                               810                           377,899                           377,479                        --                        --
                                                                                                                  --------------------                      -------------------- ----------                      -------------------- ----------                      -------------------- --------------                      -------------------- --------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Total Development Projects                                                                                                       5,015                                         $  2,424,029                                         $  2,030,083                                         $        761,068                                         $ --
                                                                                                                  ====================                      ==================== ==========                      ==================== ==========                      ==================== ==============                      ==================== ==============
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Land Held for Development                                                                                                          N/A                               N/A                                         $    115,082                                         $        115,082                                         $ --
                                                                                                                  ====================                      ==================== ==========                      ==================== ==========                      ==================== ==============                      ==================== ==============
                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                                                                                                                            Total Capital                                                                 Q3 2016
NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS                                                                                                                                                                                                                                                                                                                                                                      Cost                                                                        NOI
                                                                                                                                                                                                                                                                                                                                                                                        ----------------------------------------------------                     ---------------------------------------------------------
Projects Under Development                                                                                                                                                                                                                                                                                                                                                                                 $ 1,132,048                                                              $           (206 )
Completed Not Stabilized                                                                                                                                                                                                                                                                                                                                                                                       914,082                                                                         3,799
Completed and Stabilized During the Quarter                                                                                                                                                                                                                                                                                                                                                 377,899                                   5,643  
                                                                                                                                                                                                                                                                                                                                                                                        -------------------- --------- --------------------                      -------------------- -------------- --------------------
    Total Development NOI Contribution                                                                                                                                                                                                                                                                                                                                                                     $ 2,424,029                                           $          9,236  
                                                                                                                                                                                                                                                                                                                                                                                        ==================== ========= ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Note: All development projects listed are wholly owned by the
Company.
                            
(1) Properties included here are substantially complete. However,
they may still require additional exterior and interior work for all
apartment units to be available for leasing.
                            
(2) 170 Amsterdam - The land under this project is subject to a long
term ground lease.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Repairs and Maintenance Expenses and Capital Expenditures to Real
                                                                                                                                                                                                                                     Estate
                                                                                                                                                                                                                                     For the Nine Months Ended September 30, 2016
                                                                                                                                                                                                                                     (Amounts in thousands except for apartment unit and per apartment
                                                                                                                                                                                                                                     unit amounts)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                     Repairs and Maintenance Expenses                                                                                                                                                                                                                  Capital Expenditures to Real Estate                                                                                                                                             Total Expenditures
                                                                                       -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------
                                                        Total                                   Expense (2)                              Avg. Per                               Payroll (3)                              Avg. Per                                  Total                                  Avg. Per                               Replacements                              Avg. Per                                Building                                Avg. Per                                   Total                                  Avg. Per                                   Grand                                        Avg. Per
                                                      Apartment                                                                          Apartment                                                                       Apartment                                                                        Apartment                                   (4)                                  Apartment                             Improvements                              Apartment                                                                         Apartment                                  Total                                        Apartment
                                                      Units (1)                                                                            Unit                                                                            Unit                                                                             Unit                                                                             Unit                                     (5)                                    Unit                                                                              Unit                                                                                    Unit
                                                   --------------                      --------------------------                       --------                       --------------------------                       --------                       ---------------------------                       ---------                       --------------------------                       --------                       --------------------------                       ---------                       ---------------------------                       ---------                       ---------------------------                       --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Same Store Properties                                      71,488                                         $ 63,126                         $  883                                         $ 49,786                         $  696                                         $ 112,912                         $ 1,579                                         $ 57,224                         $  801                                         $ 55,290                         $   773                                         $ 112,514                         $ 1,574                                         $ 225,426                               $      3,153
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Non-Same Store Properties (6)                               6,393                                            3,353                            684                                            2,494                            508                                             5,847                           1,192                                            3,278                            669                                            5,987                           1,221                                             9,265                           1,890                                            15,112                                      3,082
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Other (7)                                          --                         3,685                                                        3,981                                                         7,666                                                         1,985                                                          787                                                          2,772                                                         10,438
                                                   --------------                      -------------------- ------                                                     -------------------- ------                                                     -------------------- -------                                                      -------------------- ------                                                     -------------------- ------                                                      -------------------- -------                                                      -------------------- -------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Total                                                      77,881                                         $ 70,164                                                                        $ 56,261                                                                        $ 126,425                                                                         $ 62,487                                                                        $ 62,064                                                                         $ 124,551                                                                         $ 250,976
                                                   ==============                      ==================== ======                                                     ==================== ======                                                     ==================== =======                                                      ==================== ======                                                     ==================== ======                                                      ==================== =======                                                      ==================== =======
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
(1)            Total Apartment Units - Excludes 945 unconsolidated apartment units
               for which repairs and maintenance expenses and capital expenditures
               to real estate are self-funded and do not consolidate into the
               Company’s results.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
(2)            Repairs and Maintenance Expenses - 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 and maintenance costs.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
(3)            Maintenance Payroll - Includes payroll and related expenses for
               maintenance staff.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
(4)            Replacements - Includes new expenditures inside the apartment units
               such as appliances, mechanical equipment, fixtures and flooring,
               including carpeting. Replacements for same store properties also
               include $35.9 million spent during the nine months ended September
               30, 2016 on apartment unit renovations/rehabs (primarily kitchens
               and baths) on approximately 3,200 same store apartment units
               (equating to approximately $11,000 per apartment unit rehabbed)
               designed to reposition these units for higher rental levels in their
               respective markets. In 2016, the Company expects to spend
               approximately $50.0 million for all unit renovation/rehab costs
               (primarily on same store properties) at a weighted average cost of
               $11,000 per apartment unit rehabbed.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
(5)            Building Improvements - Includes roof replacement, paving, amenities
               and common areas, building mechanical equipment systems, exterior
               painting and siding, major landscaping, vehicles and office and
               maintenance equipment.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
(6)            Per apartment unit amounts are based on a weighted average of 4,904
               apartment units.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
(7)            Other - Primarily includes expenditures for properties sold and
               properties under development.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
(8)            Based on the approximately 70,000 apartment units expected to be
               included in same store properties at December 31, 2016, the Company
               estimates that during 2016 it will spend approximately $2,300 per
               apartment unit of capital expenditures, inclusive of apartment unit
               renovation/rehab costs, or $1,600 per apartment unit excluding
               apartment unit renovation/rehab costs.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Normalized EBITDA Reconciliations
                                                                                                                                                                                                                                     (Amounts in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                     Normalized EBITDA Reconciliations for Page 18
                                                                                                                                                                                                                                                                                                                                                             
                                                                                     ------------------------------------------------------------------------- -----------------------------------------------------                     ---------------------------------------------------------------------- ----------------------------------------------------------------------------- ---------------------------------------------------------                     ----------------------------------------------------------------------------- ---------------------------------------------------------
                                                                                                                                         Trailing Twelve Months                                                                                                                                                                               2016                                                                                                                                                                                           2015
                                                                                     -------------------------------------------------------------------------------------------------------------------------------                     --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------
                                                                                                      September 30, 2016                                                           June 30, 2016                                                                 Q3                                                                        Q2                                                                            Q1                                                                            Q4                                                                            Q3
                                                                                     -----------------------------------------------------                     -----------------------------------------------------                     --------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
Net income                                                                                              $  4,391,443                                                              $  4,379,407                                                              $ 217,492                                                              $        228,400                                                              $      3,731,831                                                              $        213,720                                                              $        205,456
Interest expense incurred, net                                                                               496,856                                                                   524,802                                                                 86,352                                                                        86,472                                                                       213,492                                                                       110,540                                                                       114,298
Amortization of deferred financing costs                                                                      13,067                                                                    13,413                                                                  2,261                                                                         2,345                                                                         5,394                                                                         3,067                                                                         2,607
Depreciation                                                                                                 709,275                                                                   726,104                                                                179,230                                                                       176,127                                                                       172,885                                                                       181,033                                                                       196,059
Income and other tax expense (benefit) (includes discontinued                               1,419                               1,322                              426                                     416                                     358                                     219                                     329  
operations)
                                                                                     -------------------- ---------- --------------------                      -------------------- ---------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
EBITDA                                                                                                     5,612,060                                                                 5,645,048                                                                485,761                                                                       493,760                                                                     4,123,960                                                                       508,579                                                                       518,749
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Property acquisition costs (other expenses)                                                                    2,256                                                                     2,242                                                                     41                                                                            76                                                                         1,335                                                                           804                                                                            27
Write-off of pursuit costs (other expenses)                                                                    4,265                                                                     4,120                                                                    816                                                                         1,115                                                                         1,448                                                                           886                                                                           671
(Income) loss from investments in unconsolidated entities                                                     (6,483 )                                                                   2,308                                                                 (7,750 )                                                                         800                                                                         1,104                                                                          (637 )                                                                       1,041
Net (gain) on sales of land parcels                                                                          (15,759 )                                                                 (11,722 )                                                               (4,037 )                                                              --                                                                       (11,722 )                                                              --                                                                --
(Gain) on sale of investment securities and other investments                                                (58,555 )                                                                 (55,295 )                                                               (3,260 )                                                                     (54,600 )                                                                        (556 )                                                                        (139 )                                                              --
(interest and other income)
Executive compensation program duplicative costs and retirement                                                3,413                                                                     8,021                                                                    359                                                                           359                                                                           359                                                                         2,336                                                                         4,967
benefit obligations
Insurance/litigation settlement or reserve income (interest and                                               (3,098 )                                                                  (1,581 )                                                               (1,517 )                                                                      (1,321 )                                                                         (53 )                                                                        (207 )                                                              --
other income)
Insurance/litigation/environmental settlement or reserve expense                                               7,169                                                                    (2,149 )                                                                9,339                                                                             3                                                                          (244 )                                                                      (1,929 )                                                                          21
(other expenses)
Other (interest and other income)                                                                                (63 )                                                                    (108 )                                                                  (63 )                                                              --                                                                --                                                                --                                                                          (108 )
Net (gain) on sales of discontinued operations                                                                   (43 )                                                                     (15 )                                                                  (28 )                                                              --                                                                           (15 )                                                              --                                                                --
Net (gain) on sales of real estate properties                                          (3,910,313 )                                           (3,887,216 )                                           (90,036 )                                                  (57,356 )                            (3,723,479 )                                                  (39,442 )                                                  (66,939 )
                                                                                     -------------------- ---------- --------------------                      -------------------- ---------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Normalized EBITDA                                                                                       $  1,634,849                                           $  1,703,653                                           $ 389,625                                           $        382,836                        $        392,137                                           $        470,251                                           $        458,429  
                                                                                     ==================== ========== ====================                      ==================== ========== ====================                      ==================== ======= ====================                      ==================== ============== ==================== -------------------- ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Balance Sheet Items:                                                                                  September 30, 2016                                                           June 30, 2016
--------------------------------------------------------------                       --------------------------------------------------                        --------------------------------------------------
Total debt                                                                                              $  8,498,787                                                              $  8,510,994
Cash and cash equivalents                                                                                   (517,586 )                                                                (497,843 )
Mortgage principal reserves/sinking funds                                                 (56,404 )                                              (54,126 )
                                                                                     -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Net debt                                                                                                $  7,924,797                                           $  7,959,025  
                                                                                     ==================== ========== ====================                      ==================== ========== ====================
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Adjustments from FFO to Normalized FFO
                                                                                                                                                                                                                                     (Amounts in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                 Nine Months Ended September 30,                                                                                                                                                                                          Quarter Ended September 30,
                                                                                                      ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                2016                                                                          2015                                                                        Variance                                                                        2016                                                                          2015                                                                        Variance
                                                                                                      ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
Impairment                                                                                                               $ --                                           $ --                                           $ --                                           $ --                                           $ --                                           $ --  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Asset impairment and valuation allowances                                                               --                          --                          --                          --                          --                          --  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Archstone indirect costs ((income) loss from investments in                                                                           656                                                                       (16,473 )                                                                      17,129                                                                           371                                                                           245                                                                           126
unconsolidated entities) (A)
Property acquisition costs (other expenses)                                                                                         1,452                                                                           204                                                                         1,248                                                                            41                                                                            27                                                                            14
Write-off of pursuit costs (other expenses)                                                                      3,379                                   2,322                                   1,057                                     816                                     671                                     145  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Property acquisition costs and write-off of pursuit costs                                                        5,487                                 (13,947 )                                                   19,434                                   1,228                                     943                                     285  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Prepayment premiums/penalties (interest expense)                                                                                  112,419                                                                --                                                                       112,419                                                                --                                                                --                                                                --
Write-off of unamortized deferred financing costs (interest expense)                                                                3,363                                                                            88                                                                         3,275                                                                           112                                                                            13                                                                            99
Write-off of unamortized (premiums)/discounts/OCI (interest expense)                                                                4,494                                                                        (1,379 )                                                                       5,873                                                                --                                                                            16                                                                           (16 )
Loss due to ineffectiveness of forward starting swaps (interest                                                            --                                                                         3,003                                                                        (3,003 )                                                              --                                                                         3,003                                                                        (3,003 )
expense)
Premium on redemption of Preferred Shares                                                               --                                   2,789                                  (2,789 )                                           --                          --                          --  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Debt extinguishment (gains) losses, including prepayment penalties,
  preferred share redemptions and non-cash convertible debt discounts                                          120,276                                   4,501                                 115,775                                     112                                   3,032                                  (2,920                    )
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Net (gain) loss on sales of land parcels                                                                                          (15,759 )                                                                           1                                                                       (15,760 )                                                                      (4,037 )                                                              --                                                                        (4,037 )
Net (gain) loss on sales of unconsolidated entities - non-operating                                                      (81 )                                                                        (342 )                                                                         261                                                                           (81 )                                                                          72                                                                          (153 )
assets
(Gain) on sale of investment securities and other investments
(interest and
  other income) (B)                                                                                            (58,416                    )                                  (387                    )                               (58,029                    )                                (3,260                    )                        --                                  (3,260                    )
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
(Gains) losses on sales of non-operating assets, net of income and
other tax
  expense (benefit)                                                                                            (74,256                    )                                  (728                    )                               (73,528                    )                                (7,378                    )                                    72                                  (7,450                    )
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Executive compensation program duplicative costs and retirement                                                                     1,077                                                                         9,640                                                                        (8,563 )                                                                         359                                                                         4,967                                                                        (4,608 )
benefit obligations (C)
Insurance/litigation settlement or reserve income (interest and                                                                    (2,891 )                                                                      (5,770 )                                                                       2,879                                                                        (1,517 )                                                              --                                                                        (1,517 )
other income)
Insurance/litigation/environmental settlement or reserve expense                                                                    9,098                                                                          (867 )                                                                       9,965                                                                         9,339                                                                            21                                                                         9,318
(other expenses) (D)
Other (interest and other income)                                                                                  (63 )                                                     (302 )                                                      239                                     (63 )                                                     (108 )                                                       45  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Other miscellaneous items                                                                                        7,221                                   2,701                                   4,520                                   8,118                                   4,880                                   3,238  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                      ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
Adjustments from FFO to Normalized FFO                                                                                   $         58,728                                           $         (7,473 )                                                            $         66,201                                           $          2,080                                           $          8,927                                           $         (6,847 )
                                                                                                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
(A) Archstone indirect costs primarily includes the Company’s 60%
share of winddown costs for such items as office leases, litigation
and German operations/sales that were incurred indirectly through
the Company’s interest in various Archstone-related unconsolidated
joint ventures. During the nine months ended September 30, 2015, the
amount also includes approximately $18.6 million received related to
the favorable settlement of a lawsuit.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
(B) The nine months ended September 30, 2016 includes a $52.4
million gain related to the sale of the Company’s entire interest in
the management contracts and related rights associated with the
military housing ventures at Joint Base Lewis McChord.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
(C) Represents the accounting cost associated with the overlap of
the Company’s current and former performance based executive
compensation programs. The Company is required to expense in 2016
and 2015 a portion of both the previous program’s time based equity
grants for service in 2014 or 2015 and the performance based grants
issued under the current program, creating a duplicative charge. For
the nine months and quarter ended September 30, 2016, the entire
amounts have been recorded to general and administrative expense.
For the nine months ended September 30, 2015, $1.0 million and $6.0
million has been recorded to property management expense and general
and administrative expense, respectively. For the quarter ended
September 30, 2015, $0.3 million and $2.0 million has been recorded
to property management expense and general and administrative
expense, respectively. Also includes $2.6 million recorded to
general and administrative expense during the nine months and
quarter ended September 30, 2015 as a result of certain adjustments
for retirement benefit obligations.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
(D) For the nine months and quarter ended September 30, 2016,
includes a $5.0 million litigation reserve and a $4.3 million
environmental reserve.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Note: See pages 27 through 30 for the definitions of non-GAAP
financial measures and other terms as well as the reconciliations of
EPS to FFO per share and Normalized FFO per share.
 
-------------------------------------------------------------------------------------------------------------------------------
                                                      Equity Residential
                                            Normalized FFO Guidance and Assumptions
-------------------------------------------------------------------------------------------------------------------------------
                                                       
The guidance/projections provided below are based on current
expectations and are forward-looking. All guidance is given on a
Normalized FFO basis. Therefore, certain items excluded from
Normalized FFO, such as debt extinguishment costs/prepayment
penalties, property acquisition costs and the write-off of pursuit
costs, are not included in the estimates provided on this page. See
pages 27 through 30 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.
                                                                                               
                                            2016 Normalized FFO Guidance (per share
                                                           diluted)
-------------------------------------------------------------------------------------------------------------------------
                                                                                               
                                                                                               
                                                             Q4 2016                                        2016
                                                        ----------------                      --------------------------------
                                                                                               
Expected Normalized FFO Per Share                        $0.77 to $0.81                                $3.06 to $3.10
                                                                                               
                                             2016 Same Store Assumptions (see Note
                                                            below)
-------------------------------------------------------------------------------------------------------------------------
                                                                                               
Physical occupancy                                                                                          96.0%
Revenue change                                                                                         3.60% to 3.90%
Expense change                                                                                         2.80% to 3.20%
NOI change                                                                                             3.80% to 4.10%
                                                                                               
Note: The same store guidance provided above is based on the
approximately 70,000 apartment units expected to be included in same
store properties at December 31, 2016. Approximately 25 basis point
change in NOI percentage = $0.01 per share change in EPS/FFO per
share/Normalized FFO per share.
                                                                                               
                                                 2016 Transaction Assumptions
-------------------------------------------------------------------------------------------------------------------------
                                                                                               
Consolidated rental acquisitions                                                                       $250.0 million
Consolidated rental dispositions                                                                        $6.7 billion
Spread between Acquisition Cap Rate and Disposition Yield                                              60 basis points
                                                                                               
                                                     2016 Debt Assumptions
-------------------------------------------------------------------------------------------------------------------------
                                                                                               
Weighted average debt outstanding                                                               $9.0 billion to $9.1 billion
Weighted average interest rate (reduced for capitalized interest)                                           4.02%
Interest expense, net (on a Normalized FFO basis)                                             $361.8 million to $365.8 million
Capitalized interest                                                                           $50.0 million to $52.0 million
 
Note: All 2016 debt assumptions are shown on a Normalized FFO basis
and therefore exclude the impact of the debt extinguishment
costs/prepayment premiums/penalties shown on page 25.
                                                                                               
                                                2016 Other Guidance Assumptions
-------------------------------------------------------------------------------------------------------------------------
                                                                                               
Property management expense                                                                    $82.0 million to $84.0 million
General and administrative expense (see Note below)                                            $57.0 million to $58.0 million
Interest and other income                                                                       $3.8 million to $4.0 million
Income and other tax expense                                                                    $1.5 million to $2.0 million
Debt offerings                                                                                         $500.0 million
Equity ATM share offerings                                                                           No amounts budgeted
Preferred share offerings                                                                            No amounts budgeted
Special dividend paid in Q1 2016                                                                       $8.00 per share
Special dividend paid in Q4 2016                                                                       $3.00 per share
Regular annual dividend (paid in four equal quarterly installments)                                   $2.015 per share
Weighted average Common Shares and Units - Diluted                                                      382.3 million
                                                                                               
Note: Normalized FFO guidance excludes a duplicative charge of
approximately $1.4 million, which will be recorded to general and
administrative expense, related to the overlap of accounting costs
for the Company’s current and former executive compensation programs.
 
---------------------------------------------------------------------------
                            Equity Residential
     Additional Reconciliations and Definitions of Non-GAAP Financial
                         Measures and Other Terms
    (Amounts in thousands except per share and per apartment unit data)
                      (All per share data is diluted)
---------------------------------------------------------------------------
       
This Earnings Release and Supplemental Information includes certain
non-GAAP financial measures and other terms that management believes
are helpful in understanding our business. The definitions and
calculations of these non-GAAP financial measures and other terms
may differ from the definitions and methodologies used by other
REITs and, accordingly, may not be comparable. These non-GAAP
financial measures should not be considered as an alternative to net
earnings or any other GAAP measurement of performance or as an
alternative to cash flows from specific operating, investing or
financing activities. Furthermore, these non-GAAP financial measures
are not intended to be a measure of cash flow or liquidity.
 
Acquisition Capitalization Rate or Cap Rate - NOI that the
Company anticipates receiving in the next 12 months (or the year two
or three stabilized NOI for properties that are in lease-up at
acquisition) less an estimate of property management
costs/management fees allocated to the project (generally ranging
from 2.0% to 4.0% of revenues depending on the size and income
streams of the asset) and less an estimate for in-the-unit
replacement capital expenditures (generally ranging from $100-$450
per apartment unit depending on the age and condition of the asset)
divided by the gross purchase price of the asset. The weighted
average Acquisition Cap Rate for acquired properties is weighted
based on the projected NOI streams and the relative purchase price
for each respective property.
                                                   
Average Rental Rate - Total residential rental revenues
divided by the weighted average occupied apartment units for the
reporting period presented.
                                                   
Debt Covenant Compliance - Our unsecured debt includes
certain financial and operating covenants including, among other
things, maintenance of certain financial ratios. These provisions
are contained in the indentures applicable to each notes payable or
the credit agreement for our line of credit. The Debt Covenant
Compliance ratios that are provided show the Company’s compliance
with certain covenants governing our public unsecured debt. These
covenants generally reflect our most restrictive financial
covenants. The Company was in compliance with its unsecured debt
covenants for all years presented (the ratios should not be used for
any other purpose, including without limitation, to evaluate the
Company’s financial condition or results of operations, nor do they
indicate the Company’s covenant compliance as of any other date or
for any other period).
                                                   
Disposition Yield - NOI that the Company anticipates giving
up in the next 12 months less an estimate of property management
costs/management fees allocated to the project (generally ranging
from 2.0% to 4.0% of revenues depending on the size and income
streams of the asset) and less an estimate for in-the-unit
replacement capital expenditures (generally ranging from $100-$450
per apartment unit depending on the age and condition of the asset)
divided by the gross sale price of the asset. The weighted average
Disposition Yield for sold properties is weighted based on the
projected NOI streams and the relative sales price for each
respective property.
                                                   
Earnings Per Share ("EPS") - Net income per
share calculated in accordance with GAAP. Expected EPS is calculated
on a basis consistent with actual EPS. Due to the uncertain timing
and extent of property dispositions and the resulting gains/losses
on sales, actual EPS could differ materially from expected EPS.
                                                   
Economic Gain - Economic Gain is calculated as the net gain
on sales of real estate properties in accordance with GAAP,
excluding accumulated depreciation. The Company generally considers
Economic Gain to be an appropriate supplemental measure to net gain
on sales of real estate properties in accordance with GAAP because
it is one indication of the gross value created by the Company’s
acquisition, development, rehab, management and ultimate sale of a
property and because it helps investors to understand the
relationship between the cash proceeds from a sale and the cash
invested in the sold property. The following table presents a
reconciliation of Economic Gain to net gain on sales of real estate
properties in accordance with GAAP:
      
                                                                                                             Nine Months Ended September 30, 2016
                                                                ------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                 
                                                                                                                                                                           Net Gain on Sales
                                                                                                                              Accumulated                                   of Real Estate
                                                                         Economic Gain                                     Depreciation Gain               Properties
                                                                -------------------------------                     --------------------------------------------------- ----------------------
                                                                                                                                                                         
Starwood sale                                                                      $ 1,981,887                                         $ 1,179,210                               $  3,161,097
Woodland Park sale                                                                     258,890                                              30,442                               $    289,332
River Tower sale                                                                       152,320                                              32,076                               $    184,396
Other sales                                                         123,068                          112,978                               $    236,046
                                                                -------------------- ---------                      -------------------- ---------                      ---------- ----------
                                                                                                                                                                         
Totals                                                                             $ 2,516,165                                         $ 1,354,706                               $  3,870,871
                                                                ==================== =========                      ==================== =========                      ========== ==========
 
------------------------------------------------------------------------------------------------------------------------------
                                                      Equity Residential
                               Additional Reconciliations and Definitions of Non-GAAP Financial
                                       Measures and Other Terms - Continued
                              (Amounts in thousands except per share and per apartment unit data)
                                                (All per share data is diluted)
------------------------------------------------------------------------------------------------------------------------------
 
Funds From Operations and Normalized
Funds From Operations:
----------------------------------------------------------------------------------------------------------------------------
                                                                
Funds From Operations ("FFO") - The National Association of
Real Estate Investment Trusts ("NAREIT") defines FFO (April 2002
White Paper) as net income (computed in accordance with accounting
principles generally accepted in the United States ("GAAP")),
excluding gains (or losses) from sales and impairment write-downs of
depreciable operating properties, plus depreciation and
amortization, and after adjustments for unconsolidated partnerships
and joint ventures. Adjustments for unconsolidated partnerships and
joint ventures will be calculated to reflect funds from operations
on the same basis. The April 2002 White Paper states that gain or
loss on sales of property is excluded from FFO for previously
depreciated operating properties only. Expected FFO per share is
calculated on a basis consistent with actual FFO per share and is
considered an appropriate supplemental measure of expected operating
performance when compared to expected EPS.
                                                                
The Company believes that FFO and FFO available to Common Shares and
Units are helpful to investors as supplemental measures of the
operating performance of a real estate company, because they are
recognized measures of performance by the real estate industry and
by excluding gains or losses related to dispositions of depreciable
property and excluding real estate depreciation (which can vary
among owners of identical assets in similar condition based on
historical cost accounting and useful life estimates), FFO and FFO
available to Common Shares and Units can help compare the operating
performance of a company’s real estate between periods or as
compared to different companies.
                                                                
Normalized Funds From Operations ("Normalized FFO")
- Normalized FFO begins with FFO and excludes:
? the impact of any expenses relating to non-operating asset
impairment and valuation allowances;
? property acquisition and other transaction costs related to
mergers and acquisitions and pursuit cost write-offs;
? gains and losses from early debt extinguishment, including
prepayment penalties, preferred share redemptions and the cost
related to the implied option value of non-cash convertible debt
discounts;
? gains and losses on the sales of non-operating assets, including
gains and losses from land parcel sales, net of the effect of income
tax benefits or expenses; and
? other miscellaneous items.
                                                                
Expected Normalized FFO per share is calculated on a basis
consistent with actual Normalized FFO per share and is considered an
appropriate supplemental measure of expected operating performance
when compared to expected EPS.
                                                                
The Company believes that Normalized FFO and Normalized FFO
available to Common Shares and Units are helpful to investors as
supplemental measures of the operating performance of a real estate
company because they allow investors to compare the Company’s
operating performance to its performance in prior reporting periods
and to the operating performance of other real estate companies
without the effect of items that by their nature are not comparable
from period to period and tend to obscure the Company’s actual
operating results.
                                                                
FFO, FFO available to Common Shares and Units, Normalized FFO and
Normalized FFO available to Common Shares and Units do not represent
net income, net income available to Common Shares or net cash flows
from operating activities in accordance with GAAP. Therefore, FFO,
FFO available to Common Shares and Units, Normalized FFO and
Normalized FFO available to Common Shares and Units should not be
exclusively considered as alternatives to net income, net income
available to Common Shares or net cash flows from operating
activities as determined by GAAP or as a measure of liquidity. The
Company’s calculation of FFO, FFO available to Common Shares and
Units, Normalized FFO and Normalized FFO available to Common Shares
and Units may differ from other real estate companies due to, among
other items, variations in cost capitalization policies for capital
expenditures and, accordingly, may not be comparable to such other
real estate companies.
                                                                
FFO available to Common Shares and Units and Normalized FFO
available to Common Shares and Units are calculated on a basis
consistent with net income available to Common Shares and reflects
adjustments to net income for preferred distributions and premiums
on redemption of preferred shares in accordance with GAAP. The
equity positions of various individuals and entities that
contributed their properties to the Operating Partnership in
exchange for OP Units are collectively referred to as the
"Noncontrolling Interests - Operating Partnership". Subject to
certain restrictions, the Noncontrolling Interests - Operating
Partnership may exchange their OP Units for Common Shares on a
one-for-one basis.
   
-------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Additional Reconciliations and Definitions of Non-GAAP Financial
                                                                                                                                                                                                                                     Measures and Other Terms - Continued
                                                                                                                                                                                                                                     (Amounts in thousands except per share and per apartment unit data)
                                                                                                                                                                                                                                     (All per share data is diluted)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                        
The following table presents reconciliations of EPS to FFO per share
and Normalized FFO per share for pages 7 and 26 (the expected
guidance/projections provided below are based on current
expectations and are forward-looking):
                                                                                                                                                                                                               
                                                                                                                                    Actual Sept.                                                                  Actual Sept.                                                                     Actual                                                                        Actual                                                                    Expected                                                                Expected
                                                                                                                                      YTD 2016                                                                      YTD 2015                                                                       Q3 2016                                                                       Q3 2015                                                                    Q4 2016                                                                  2016
                                                                                                                                      Per Share                                                                     Per Share                                                                     Per Share                                                                     Per Share                                                                  Per Share                                                               Per Share
                                                                                                              ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------                     ---------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                     EPS - Diluted                                                                                               $          10.92                                                              $           1.80                                                              $           0.56                                                              $           0.53                                                             $0.62 to $0.66                                                         $11.54 to $11.58
                     Add: Depreciation expense                                                                                               1.37                                                                          1.53                                                                          0.47                                                                          0.51                                                                  0.47                                                                    1.84
                     Less: Net gain on sales                                                                            (10.15 )                                                    (0.77 )                                                    (0.26 )                                                    (0.17 )                                                               (0.27)                                                                  (10.42)
                                                                                                              -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      ---------------------------------------------------                     ---------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                     FFO per share - Diluted                                                                                                 2.14                                                                          2.56                                                                          0.77                                                                          0.87                                                              0.82 to 0.86                                                            2.96 to 3.00
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                     Asset impairment and valuation allowances                                                                     --                                                                --                                                                --                                                                --                                                             --                                                          --
                     Property acquisition costs and write-off of pursuit costs                                                               0.01                                                                         (0.04 )                                                                        0.01                                                                --                                                             --                                                               0.01
                     Debt extinguishment (gains) losses, including prepayment penalties,                                                     0.31                                                                          0.01                                                                --                                                                          0.01                                                             --                                                               0.31
                     preferred share redemptions and non-cash convertible debt discounts
                     (Gains) losses on sales of non-operating assets, net of                                                                (0.19 )                                                              --                                                                         (0.02 )                                                              --                                                                 (0.05)                                                                  (0.24)
                     income and other tax expense (benefit)
                     Other miscellaneous items                                                                            0.02                                    0.01                                    0.02                                    0.01                                          --                                                               0.02
                                                                                                              -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      ---------------------------------------------------                     ---------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                     Normalized FFO per share - Diluted                                                                          $           2.29                                           $           2.54                                           $           0.78                                           $           0.89                                          $0.77 to $0.81                                       $3.06 to $3.10
                                                                                                              ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ======================================================================= ===================================================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Net Operating Income ("NOI") - NOI is the Company’s primary
financial measure for evaluating each of its apartment properties.
NOI is defined as rental income less direct property operating
expenses (including real estate taxes and insurance). 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 properties. NOI
does not include an allocation of property management expenses.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
The following tables present reconciliations of rental income,
operating expenses and NOI for the September YTD 2016 and the Third
Quarter 2016 Same Store Properties (see page 11) to rental income,
operating expenses and NOI per the consolidated statements of
operations and NOI to operating income per the consolidated
statements of operations:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                                              Nine Months Ended September 30,                                                                                                      Quarter Ended September 30,
                                                                                                                                                                                                                                                                          ----------------------------------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                    2016                                                                          2015                                                                       2016                                                                    2015
                                                                                                                                                                                                                                                                          ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------                     ---------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                     Rental income:
                     Same store                                                                                                                                                                                                                                                              $      1,647,480                                                              $      1,583,810                                                              $  563,892                                                              $  545,281
                     Non-same store                                                                                                                                                                                                                                                169,480                                 451,549                            41,964                           148,964  
                                                                                                                                                                                                                                                                          -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                     Total rental income                                                                                                                                                                                                                                                            1,816,960                                                                     2,035,359                                                                 605,856                                                                 694,245
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                     Operating expenses:
                     Same store                                                                                                                                                                                                                                                                       484,643                                                                       472,930                                                                 168,706                                                                 159,343
                     Non-same store                                                                                                                                                                                                                                                 63,999                                 146,531                            16,853                            48,002  
                                                                                                                                                                                                                                                                          -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                     Total operating expenses                                                                                                                                                                                                                                                         548,642                                                                       619,461                                                                 185,559                                                                 207,345
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                     NOI:
                     Same store                                                                                                                                                                                                                                                                     1,162,837                                                                     1,110,880                                                                 395,186                                                                 385,938
                     Non-same store                                                                                                                                                                                                                                                105,481                                 305,018                            25,111                           100,962  
                                                                                                                                                                                                                                                                          -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                     Total NOI                                                                                                                                                                                                                                                                      1,268,318                                                                     1,415,898                                                                 420,297                                                                 486,900
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                     Adjustments:
                     Fee and asset management revenue                                                                                                                                                                                                                                                   3,351                                                                         6,413                                                                     218                                                                   2,044
                     Property management                                                                                                                                                                                                                                                              (64,003 )                                                                     (64,651 )                                                               (19,517 )                                                               (20,094 )
                     General and administrative                                                                                                                                                                                                                                                       (47,408 )                                                                     (50,618 )                                                               (12,395 )                                                               (15,197 )
                     Depreciation                                                                                                                                                                                                                                                 (528,242 )                                                 (584,862 )                                           (179,230 )                                           (196,059 )
                                                                                                                                                                                                                                                                          -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                     Operating income                                                                                                                                                                                                                                                        $        632,016                                           $        722,180                                           $  209,373                                           $  257,594  
                                                                                                                                                                                                                                                                          ==================== ============== ====================                      ==================== ============== ====================                      ==================== ======== ====================                      ==================== ======== ====================
 
--------------------------------------------------------------------------------------------------------------------------------
                                                       Equity Residential
                                Additional Reconciliations and Definitions of Non-GAAP Financial
                                        Measures and Other Terms - Continued
                               (Amounts in thousands except per share and per apartment unit data)
                                                 (All per share data is diluted)
--------------------------------------------------------------------------------------------------------------------------------
 
Non-Same Store Properties - For annual comparisons, primarily
includes all properties acquired during 2015 and 2016, plus any
properties in lease-up and not stabilized as of January 1, 2015.
                                                                 
Normalized Earnings Before Interest, Income Taxes, Depreciation
and Amortization ("EBITDA") - Represents net
income in accordance with GAAP before interest expense, income
taxes, depreciation expense and amortization expense and further
adjusted for non-comparable items. Normalized EBITDA, total debt to
Normalized EBITDA and net debt to Normalized EBITDA are important
metrics in evaluating the credit strength of the Company and its
ability to service its debt obligations. The Company believes that
Normalized EBITDA, total debt to Normalized EBITDA and net debt to
Normalized EBITDA are useful to investors, creditors and rating
agencies because they allow investors to compare the Company’s
credit strength to prior reporting periods and to other companies
without the effect of items that by their nature are not comparable
from period to period and tend to obscure the Company’s actual
credit quality.
                                                                 
Physical Occupancy - The weighted average occupied apartment
units for the reporting period divided by the average of total
apartment units available for rent for the reporting period.
                                                                 
Same Store Properties - For annual comparisons, primarily
includes all properties acquired or completed that are stabilized
prior to January 1, 2015, less properties subsequently sold.
Properties are included in Same Store when they are stabilized for
all of the current and comparable periods presented.
                                                                 
% of Stabilized NOI - Represents budgeted 2016 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.
                                                                 
Total Capital Cost - Estimated cost for projects under
development and/or developed and all capitalized costs incurred to
date plus any estimates of costs remaining to be funded for all
projects, including land acquisition costs, construction costs,
capitalized real estate taxes and insurance, capitalized interest
and loan fees, permits, professional fees, allocated development
overhead and other regulatory fees, all in accordance with GAAP.
                                                                 
Total Market Capitalization - The aggregate of the market
value of the Company’s outstanding common shares, including
restricted shares, the market value of the Company’s operating
partnership units outstanding, including restricted units (based on
the market value of the Company’s common shares) and the outstanding
principal balance of debt. The Company believes this is a useful
measure of a real estate operating company’s long-term liquidity and
balance sheet strength, because it shows an approximate relationship
between a company’s total debt and the current total market value of
its assets based on the current price at which the Company’s common
shares trade. However, because this measure of leverage changes with
fluctuations in the Company’s share price, which occur regularly,
this measure may change even when the Company’s earnings, interest
and debt levels remain stable.
                                                                 
Turnover - Total residential move-outs divided by
total residential apartment units, including inter-property and
intra-property transfers.
                                                                 
Unencumbered NOI % - Represents NOI generated by consolidated
real estate assets unencumbered by outstanding secured debt as a
percentage of total NOI generated by all of the Company’s
consolidated real estate assets.
                                                                 
Unlevered Internal Rate of Return ("IRR") - The Unlevered IRR
on sold properties refers to the internal rate of return calculated
by the Company based on the timing and amount of (i) total revenue
earned during the period owned by the Company and (ii) the gross
sales price net of selling costs, offset by (iii) the undepreciated
capital cost of the properties at the time of sale and (iv) total
direct property operating expenses (including real estate taxes and
insurance) incurred during the period owned by the Company. Each of
the items (i), (ii), (iii) and (iv) is calculated in accordance with
GAAP.
                                                                 
The calculation of the Unlevered IRR does not include an adjustment
for the Company’s general and administrative expense, interest
expense or property management expense. Therefore, the Unlevered IRR
is not a substitute for net income as a measure of our performance.
Management believes that the Unlevered IRR achieved during the
period a property is owned by the Company is useful because it is
one indication of the gross value created by the Company’s
acquisition, development, rehab, management and ultimate sale of a
property, before the impact of Company overhead. The Unlevered IRR
achieved on the properties as cited in this release should not be
viewed as an indication of the gross value created with respect to
other properties owned by the Company, and the Company does not
represent that it will achieve similar Unlevered IRRs upon the
disposition of other properties. The weighted average Unlevered IRR
for sold properties is weighted based on all cash flows over the
investment period for each respective property, including net sales
proceeds.
 

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SOURCE: Equity Residential

Equity Residential 
Marty McKenna, (312) 928-1901


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