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 Equity Residential Reports Full Year 2016 Results
   Tuesday, January 31, 2017 4:33:03 PM ET

Equity Residential (EQR ) today reported results for the quarter and year ended December 31, 2016. All per share results are reported as available to common shares/units on a diluted basis.

"Equity Residential continued its long and successful track record of investor centric capital allocation activity in 2016 with the sale of nearly 30,000 apartment units and the return of $4 billion to our shareholders in special dividends," said David J. Neithercut, Equity Residential’s President and CEO. "These highly strategic sales capitalized on extraordinary investor demand for multifamily assets which enabled Equity Residential to maximize value for its shareholders while completing the transformation of its portfolio into one focused primarily on urban and highly walkable, close-in suburban assets."



"From an operating perspective, same store revenue growth which began to slow in 2016 will continue to weaken in 2017 due to new apartment supply and slowing growth in higher paying jobs," said Mr. Neithercut. "However, extraordinarily strong demand for rental housing driven by favorable demographics, household growth, low unemployment and rising incomes continue to support the long term outlook for rental housing in our core markets and the prospects for excellent risk adjusted returns to our shareholders."

2016 Highlights

-- The Company generated same store revenue growth of 3.7% in 2016 as compared to 2015.

-- The Company sold 98 consolidated apartment properties, consisting of 29,440 apartment units, for an aggregate sale price of approximately $6.8 billion, generating an Unlevered IRR of 11.8%. These sales produced a net gain on sales of real estate properties of approximately $4.0 billion and an Economic Gain of approximately $2.6 billion.

-- The Company paid its shareholders special dividends of approximately $4.0 billion, or $11 per share, using proceeds from the above property sales. In addition, the Company paid its shareholders approximately $765.7 million, or $2.015 per share, in regular quarterly dividends.

-- The Company stabilized six development properties during the year: Prism at Park Avenue South and 170 Amsterdam in New York; Junction 47 and Odin in Seattle; Azure in San Francisco; and Vista 99 in San Jose. These assets had a total development cost of approximately $894.2 million and a weighted average projected yield of 6.0%.

-- The Company entered into a new $2.0 billion unsecured revolving credit agreement which matures in January 2022 and has a lower cost than the Company’s prior agreement.

Fourth Quarter 2016

Earnings per Share (EPS) for the fourth quarter of 2016 was $0.75 compared to $0.55 in the fourth quarter of 2015. The difference is due primarily to a higher amount of property sale gains due to more property sales in the fourth quarter of 2016, lower depreciation expense in the fourth 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 $0.80 per share for the fourth quarter of 2016 compared to $0.92 per share in the fourth 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 fourth quarter of 2016 was $0.79 per share compared to $0.93 per share in the fourth 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 $0.04 per share from Lease-Up NOI;

-- A positive impact of approximately $0.04 per share from lower total interest expense due to lower debt balances; and

-- A negative impact of approximately $0.24 per share of lower NOI primarily as a result of the Company’s 2016 disposition activity.

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.

Year Ended December 31, 2016

EPS for the year ended December 31, 2016 was $11.68 compared to $2.36 for the full year 2015. The difference is due primarily to a higher amount of property sale gains due to significantly more property sales in 2016, partially offset by the items described below.

FFO for the year ended December 31, 2016 was $2.94 per share compared to $3.48 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 year ended December 31, 2016 was $3.09 per share compared to $3.46 per share for the full year 2015. The difference is due primarily to:

-- A positive impact of approximately $0.15 per share from increased same store NOI;

-- A positive impact of approximately $0.13 per share from Lease-Up NOI;

-- A positive impact of approximately $0.21 per share from lower total interest expense due to lower debt balances;

-- A negative impact of approximately $0.83 per share of lower NOI primarily as a result of the Company’s 2016 disposition activity; and

-- A negative impact of approximately $0.03 per share from higher general and administrative expense, lower fee and asset management income and other items.

Same Store Results

On a same store fourth quarter to fourth quarter comparison, which includes 70,881 apartment units, revenues increased 2.9%, expenses increased 5.6% and NOI increased 1.9%. Average Rental Rate increased 3.0% and occupancy decreased 0.1%.

On a same store year to year comparison, which includes 69,879 apartment units, revenues increased 3.7%, expenses increased 3.3% and NOI increased 3.9%. Average Rental Rate increased 3.7% and occupancy decreased 0.1%.

Investment Activity

The Company sold seven consolidated apartment properties, consisting of 1,609 apartment units, for an aggregate sale price of approximately $243.5 million at a weighted average Disposition Yield of 6.6% and generating an Unlevered IRR of 12.5%.

Also during the quarter, the Company stabilized its Vista 99 development in San Jose, California at a projected yield of 7.1%.

During 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%. Also during 2016, the Company sold 98 consolidated apartment properties, consisting of 29,440 apartment units, for an aggregate sale price of approximately $6.8 billion, generating an Unlevered IRR of 11.8%. These sales produced a net gain on sales of real estate properties of approximately $4.0 billion and an Economic Gain of approximately $2.6 billion. The weighted average Disposition Yield on these sales is estimated at 5.4%. Also during 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. Additionally during 2016, the Company sold three land parcels for an aggregate sale price of approximately $57.5 million and an unconsolidated property in Atlanta for which the Company received approximately $12.4 million for its 20% interest.

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.

On November 3, 2016, the Company entered into a new $2.0 billion unsecured revolving credit agreement. The new facility matures in January 2022 and has an interest rate of LIBOR plus a spread (currently 0.825%) with an annual facility fee of 12.5 basis points. Both the spread and the facility fee are dependent on the credit rating of the Company’s long-term debt. This facility replaced the Company’s existing $2.5 billion facility which was scheduled to mature in April 2018.

First Quarter 2017 Guidance

The Company has established an EPS guidance range of $0.32 to $0.36 for the first quarter of 2017. The difference between the Company’s fourth quarter 2016 EPS of $0.75 and the midpoint of the first quarter 2017 guidance range of $0.34 is due primarily to lower expected gains on property sales and the items described below.

The Company has established an FFO guidance range of $0.68 to $0.72 per share for the first quarter of 2017. The difference between the Company’s fourth quarter 2016 FFO of $0.80 per share and the midpoint of the first quarter 2017 guidance range of $0.70 per share is due primarily to higher expected debt extinguishment costs and the items described below.

The Company has established a Normalized FFO guidance range of $0.71 to $0.75 per share for the first quarter of 2017. The difference between the Company’s fourth quarter 2016 Normalized FFO of $0.79 per share and the midpoint of the first quarter 2017 guidance range of $0.73 per share is due primarily to:

-- A negative impact of approximately $0.02 per share from lower same store NOI;

-- 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 $0.03 per share from higher overhead costs (general and administrative and property management costs), which are typically front-end loaded for the year. The Company expects total overhead costs to decrease in 2017 from 2016.

Full Year 2017 Guidance

The Company is providing guidance for its full year 2017 same store operating performance, EPS, FFO per share, Normalized FFO per share and transactions as listed below:

Same Store:                                       
   Physical occupancy                                                         95.7%
   Revenue change                                                         1.0% to 2.25%
   Expense change                                                         3.0% to 4.0%
   NOI change                                                             0.0% to 2.0%
                                                                       
EPS                                                                      $1.92 to $2.02
FFO per share                                                            $3.01 to $3.11
Normalized FFO per share                                                 $3.05 to $3.15
                                                                       
Transactions:
   Consolidated Rental Acquisitions                                       $500 million
   Consolidated Rental Dispositions                                       $500 million
   Acquisition Cap Rate/Disposition Yield Spread                         75 basis points

The Company has established an EPS guidance range of $1.92 to $2.02 for full year 2017. The difference between the Company’s full year 2016 EPS of $11.68 and the midpoint of the full year 2017 guidance range of $1.97 is due primarily to lower expected gains on property sales in 2017 and the items described below.

The Company has established an FFO guidance range of $3.01 to $3.11 per share for full year 2017. The difference between the Company’s full year 2016 FFO of $2.94 per share and the midpoint of the full year 2017 guidance range of $3.06 per share is due primarily to lower gains on non-operating asset sales and lower expected debt extinguishment costs and the items described below.

The Company has established a Normalized FFO guidance range of $3.05 to $3.15 per share for full year 2017. The difference between the Company’s full year 2016 Normalized FFO of $3.09 per share and the midpoint of the full year 2017 guidance range of $3.10 per share is due primarily to:

-- A positive impact of approximately $0.04 per share from increased same store NOI;

-- A positive impact of approximately $0.12 per share from NOI from non-same store properties, inclusive of Lease-Up NOI;

-- A negative impact of approximately $0.12 per share of lower NOI primarily as a result of the Company’s 2016 disposition activity;

-- A negative impact of approximately $0.02 per share from higher total interest expense due to lower capitalized interest as the Company’s development projects are put into service and higher expected floating rates in 2017, partially offset by the significant debt repayment activity during the first quarter of 2016; and

-- A negative impact of approximately $0.01 per share from other items including lower fee and asset management income and lower interest and other income partially offset by lower overhead costs (general and administrative and property management costs).

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.

First Quarter 2017 Earnings and Conference Call

Equity Residential expects to announce first quarter 2017 results on Tuesday, April 25, 2017 and host a conference call to discuss those results at 10:00 a.m. CT on Wednesday, April 26, 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 302 properties consisting of 77,458 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, February 1, at 10:00 a.m. Central. Please visit the Investor section of the Company’s web site at www.equityapartments.com for the link. A replay of the web cast will be available for two weeks at this site.

                                                                                                                                                                                   Equity Residential
                                                                                                                                                                          Consolidated Statements of Operations
                                                                                                                                                                      (Amounts in thousands except per share data)
                                                                                                                                                                                       (Unaudited)
                                                                                                                                                                                                                                                  
                                                                                                                                                Year Ended December 31,                                                                                                                                Quarter Ended December 31,
                                                                                          ----------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                    2016                                                                        2015                                                                       2016                                                                          2015
                                                                                          ---------------------------------------------------------                     ----------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
REVENUES
   Rental income                                                                                             $      2,422,233                                                              $ 2,736,578                                                              $        605,273                                                              $        701,219
   Fee and asset management                                                                          3,567                              8,387                                     216                                   1,974  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total revenues                                                                             2,425,800                          2,744,965                                 605,489                                 703,193  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                
EXPENSES
   Property and maintenance                                                                                           406,823                                                                  479,160                                                                        97,135                                                                       114,212
   Real estate taxes and insurance                                                                                    317,387                                                                  339,802                                                                        78,433                                                                        85,289
   Property management                                                                                                 82,015                                                                   86,206                                                                        18,012                                                                        21,555
   General and administrative                                                                                          57,840                                                                   64,664                                                                        10,432                                                                        14,046
   Depreciation                                                                                    705,649                            765,895                                 177,407                                 181,033  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total expenses                                                                             1,569,714                          1,735,727                                 381,419                                 416,135  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                
Operating income                                                                                                      856,086                                                                1,009,238                                                                       224,070                                                                       287,058
                                                                                                                                                                                                                                                                                                                                
   Interest and other income                                                                                           65,773                                                                    7,372                                                                           681                                                                           466
   Other expenses                                                                                                     (10,368 )                                                                 (2,942 )                                                                       4,112                                                                          (103 )
   Interest:
      Expense incurred, net                                                                                          (482,246 )                                                               (444,487 )                                                                     (95,930 )                                                                    (110,541 )
      Amortization of deferred financing costs                                                     (12,633 )                                             (10,801 )                                                   (2,633 )                                                   (3,067 )
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Income before income and other taxes, income (loss) from investments                                                  416,612                                                                  558,380                                                                       130,300                                                                       173,813
in
unconsolidated entities, net gain (loss) on sales of real estate
properties and land
parcels and discontinued operations
Income and other tax (expense) benefit                                                                                 (1,613 )                                                                   (917 )                                                                        (424 )                                                                        (219 )
Income (loss) from investments in unconsolidated entities                                                               4,801                                                                   15,025                                                                        (1,045 )                                                                         637
Net gain on sales of real estate properties                                                                         4,044,055                                                                  335,134                                                                       173,184                                                                        39,442
Net gain (loss) on sales of land parcels                                                            15,731                                 (1 )                                                      (28 )                                           --  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Income from continuing operations                                                                                   4,479,586                                                                  907,621                                                                       301,987                                                                       213,673
Discontinued operations, net                                                                           518                                397                                     394                                      47  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income                                                                                                          4,480,104                                                                  908,018                                                                       302,381                                                                       213,720
Net (income) attributable to Noncontrolling Interests:
   Operating Partnership                                                                                             (171,511 )                                                                (34,241 )                                                                     (11,069 )                                                                      (8,050 )
   Partially Owned Properties                                                                      (16,430 )                                              (3,657 )                                                  (14,062 )                                                   (1,184 )
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income attributable to controlling interests                                                                    4,292,163                                                                  870,120                                                                       277,250                                                                       204,486
Preferred distributions                                                                                                (3,091 )                                                                 (3,357 )                                                                        (773 )                                                                        (800 )
Premium on redemption of Preferred Shares                                                   --                             (3,486 )                                           --                                    (697 )
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income available to Common Shares                                                                        $      4,289,072                                           $   863,277                                           $        276,477                                           $        202,989  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                
Earnings per share - basic:
Income from continuing operations available to Common Shares                                                 $          11.75                                           $      2.37                                           $           0.76                                           $           0.56  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
Net income available to Common Shares                                                                        $          11.75                                           $      2.37                                           $           0.76                                           $           0.56  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
Weighted average Common Shares outstanding                                                         365,002                            363,498                                 365,256                                 363,828  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                
Earnings per share - diluted:
Income from continuing operations available to Common Shares                                                 $          11.68                                           $      2.36                                           $           0.75                                           $           0.55  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
Net income available to Common Shares                                                                        $          11.68                                           $      2.36                                           $           0.75                                           $           0.55  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
Weighted average Common Shares outstanding                                                         381,992                            380,620                                 381,860                                 381,220  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                
Distributions declared per Common Share outstanding                                                          $         13.015                                           $      2.21                                           $        0.50375                                           $         0.5525  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                            Equity Residential
                                                                                                                                                                      Consolidated Statements of Funds From Operations and Normalized
                                                                                                                                                                                           Funds From Operations
                                                                                                                                                                               (Amounts in thousands except per share data)
                                                                                                                                                                                                (Unaudited)
 
                                                                                                                                            Year Ended December 31,                                                                                                                Quarter Ended December 31,
                                                                                                       ---------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                 2016                                                       2015                                                                          2016                                                       2015
                                                                                                       ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
Net income                                                                                                                $      4,480,104                                                              $        908,018                                                              $        302,381                                                              $        213,720
Net (income) attributable to Noncontrolling Interests - Partially                                                     (16,430 )                                                                      (3,657 )                                                                     (14,062 )                                                                      (1,184 )
Owned Properties
Preferred distributions                                                                                                             (3,091 )                                                                      (3,357 )                                                                        (773 )                                                                        (800 )
Premium on redemption of Preferred Shares                                                                --                                  (3,486 )                                           --                                    (697 )
                                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income available to Common Shares and Units                                                                                  4,460,583                                                                       897,518                                                                       287,546                                                                       211,039
                                                                                                                                                                                                                                                                                                                                                  
Adjustments:
   Depreciation                                                                                                                    705,649                                                                       765,895                                                                       177,407                                                                       181,033
   Depreciation - Non-real estate additions                                                                            (5,224 )                                                                      (4,981 )                                                                      (1,292 )                                                                      (1,214 )
   Depreciation - Partially Owned Properties                                                                           (3,805 )                                                                      (4,332 )                                                                        (909 )                                                                      (1,084 )
   Depreciation - Unconsolidated Properties                                                                             4,745                                                                         4,920                                                                         1,139                                                                         1,232
   Net (gain) on sales of unconsolidated entities - operating assets                                                   (8,841 )                                                                        (100 )                                                              --                                                                --
   Net (gain) on sales of real estate properties                                                                                (4,044,055 )                                                                    (335,134 )                                                                    (173,184 )                                                                     (39,442 )
   Noncontrolling Interests share of gain on sales                                                                                  14,521                                                                --                                                                        14,521                                                                --
   Discontinued operations:
      Net (gain) on sales of discontinued operations                                                                (43 )                                           --                          --                          --  
                                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
FFO available to Common Shares and Units                                                                                         1,123,530                                                                     1,323,786                                                                       305,228                                                                       351,564
                                                                                                                                                                                                                                                                                                                                                  
Adjustments (see page 25 for additional detail):
   Asset impairment and valuation allowances                                                                                --                                                                --                                                                --                                                                --
   Property acquisition costs and write-off of pursuit costs                                                                         6,478                                                                       (11,706 )                                                                         991                                                                         2,241
   Debt extinguishment (gains) losses, including prepayment penalties,
   preferred
    share redemptions and non-cash convertible debt discounts                                                                      121,694                                                                         5,704                                                                         1,418                                                                         1,203
   (Gains) losses on sales of non-operating assets, net of income and
   other tax
    expense (benefit)                                                                                                              (74,221 )                                                                      (2,883 )                                                                          35                                                                        (2,155 )
   Other miscellaneous items                                                                                      2,169                                   2,901                                  (5,052 )                                                      200  
                                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Normalized FFO available to Common Shares and Units                                                                       $      1,179,650                                           $      1,317,802                                           $        302,620                                           $        353,053  
                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                  
FFO                                                                                                                       $      1,126,621                                                              $      1,330,629                                                              $        306,001                                                              $        353,061
Preferred distributions                                                                                                             (3,091 )                                                                      (3,357 )                                                                        (773 )                                                                        (800 )
Premium on redemption of Preferred Shares                                                                --                                  (3,486 )                                           --                                    (697 )
                                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
FFO available to Common Shares and Units                                                                                  $      1,123,530                                           $      1,323,786                                           $        305,228                                           $        351,564  
                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
FFO per share and Unit - basic                                                                                            $           2.97                                           $           3.51                                           $           0.81                                           $           0.93  
                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
FFO per share and Unit - diluted                                                                                          $           2.94                                           $           3.48                                           $           0.80                                           $           0.92  
                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                  
Normalized FFO                                                                                                            $      1,182,741                                                              $      1,321,159                                                              $        303,393                                                              $        353,853
Preferred distributions                                                                                          (3,091 )                                                   (3,357 )                                                     (773 )                                                     (800 )
                                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Normalized FFO available to Common Shares and Units                                                                       $      1,179,650                                           $      1,317,802                                           $        302,620                                           $        353,053  
                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Normalized FFO per share and Unit - basic                                                                                 $           3.11                                           $           3.49                                           $           0.80                                           $           0.94  
                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Normalized FFO per share and Unit - diluted                                                                               $           3.09                                           $           3.46                                           $           0.79                                           $           0.93  
                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                  
Weighted average Common Shares and Units outstanding - basic                                                    378,829                                 377,073                                 379,081                                 377,380  
                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Weighted average Common Shares and Units outstanding - diluted                                                  381,992                                 380,620                                 381,860                                 381,220  
                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
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)
 
                                                                                               December 31, 2016                                        December 31, 2015
                                                                                              ---------------------------------------------------------                     -----------------------------------------------------
ASSETS
Investment in real estate
   Land                                                                                                          $      5,899,862                                                              $  5,864,046
   Depreciable property                                                                                                18,730,579                                                                18,037,087
   Projects under development                                                                                             637,168                                                                 1,122,376
   Land held for development                                                                           118,816                             158,843  
                                                                                              -------------------- -------------- --------------------                      -------------------- ---------- --------------------
Investment in real estate                                                                                              25,386,425                                                                25,182,352
   Accumulated depreciation                                                                         (5,360,389 )                                           (4,905,406 )
                                                                                              -------------------- -------------- --------------------                      -------------------- ---------- --------------------
Investment in real estate, net                                                                                         20,026,036                                                                20,276,946
Real estate held for sale                                                                                          --                                                                 2,181,135
Cash and cash equivalents                                                                                                  77,207                                                                    42,276
Investments in unconsolidated entities                                                                                     60,141                                                                    68,101
Deposits - restricted                                                                                         76,946                                                                    55,893
Escrow deposits - mortgage                                                                                    64,935                                                                    56,946
Other assets                                                                                           398,883                             428,899  
                                                                                              -------------------- -------------- --------------------                      -------------------- ---------- --------------------
         Total assets                                                                                            $     20,704,148                                           $ 23,110,196  
                                                                                              ==================== ============== ====================                      ==================== ========== ====================
                                                                                                                                                                             
LIABILITIES AND EQUITY
Liabilities:
   Mortgage notes payable, net                                                                                   $      4,119,181                                                              $  4,685,134
   Notes, net                                                                                                           4,848,079                                                                 5,848,956
   Line of credit and commercial paper                                                                                     19,998                                                                   387,276
   Accounts payable and accrued expenses                                                                                  147,482                                                                   187,124
   Accrued interest payable                                                                                                60,946                                                                    85,221
   Other liabilities                                                                                                      350,466                                                                   366,387
   Security deposits                                                                                                       62,624                                                                    77,582
   Distributions payable                                                                               192,296                             209,378  
                                                                                              -------------------- -------------- --------------------                      -------------------- ---------- --------------------
         Total liabilities                                                                           9,801,072                          11,847,058  
                                                                                              -------------------- -------------- --------------------                      -------------------- ---------- --------------------
                                                                                                                                                                             
Commitments and contingencies
                                                                                                                                                                             
Redeemable Noncontrolling Interests - Operating Partnership                               442,092                             566,783  
                                                                                              -------------------- -------------- --------------------                      -------------------- ---------- --------------------
Equity:
   Shareholders’ equity:
      Preferred Shares of beneficial interest, $0.01 par value;                                                            37,280                                                                    37,280
      100,000,000 shares authorized; 745,600 shares issued and
      outstanding as of December 31, 2016 and December 31, 2015
      Common Shares of beneficial interest, $0.01 par value;                                                                3,659                                                                     3,648
      1,000,000,000 shares authorized; 365,870,924 shares issued
      and outstanding as of December 31, 2016 and 364,755,444
      shares issued and outstanding as of December 31, 2015
      Paid in capital                                                                                                   8,758,422                                                                 8,572,365
      Retained earnings                                                                                                 1,543,626                                                                 2,009,091
      Accumulated other comprehensive (loss)                                                          (113,909 )                                             (152,016 )
                                                                                              -------------------- -------------- --------------------                      -------------------- ---------- --------------------
         Total shareholders’ equity                                                         10,229,078                                                                10,470,368
   Noncontrolling Interests:
      Operating Partnership                                                                                               221,297                                                                   221,379
      Partially Owned Properties                                                                        10,609                               4,608  
                                                                                              -------------------- -------------- --------------------                      -------------------- ---------- --------------------
         Total Noncontrolling Interests                                                                231,906                             225,987  
                                                                                              -------------------- -------------- --------------------                      -------------------- ---------- --------------------
         Total equity                                                                               10,460,984                          10,696,355  
                                                                                              -------------------- -------------- --------------------                      -------------------- ---------- --------------------
         Total liabilities and equity                                                                            $     20,704,148                                           $ 23,110,196  
                                                                                              ==================== ============== ====================                      ==================== ========== ====================
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                Equity Residential
                                                                                                                 Portfolio Summary
                                                                                                              As of December 31, 2016
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                              
                                                                                                                                                                     % of                                                    Average
                                                                                                                       Apartment                                  Stabilized                                                 Rental
             Markets/Metro Areas                                                      Properties                         Units                                        NOI                                                     Rate
-------------------------------------------                                           ----------                      ---------                      ------------------------------------                     ------------------------------------
                                                                                                                                                                                                               
Los Angeles                                                                                   70                         15,857                                18.3 %                                                            $          2,382
Orange County                                                                                 12                          3,684                                 3.9 %                                                                       2,028
San Diego                                                                                     13                          3,505                                 3.9 %                                                    2,198
                                                                                      ----------                      ---------                      -------------- --------------------                      -------------------- --------------
Subtotal - Southern California                                                   95                         23,046                                26.1 %                                                                       2,295
                                                                                                                                                                                                               
San Francisco                                                                                 54                         12,959                                19.7 %                                                                       3,064
New York                                                                                      40                         10,632                                17.9 %                                                                       3,751
Washington DC                                                                                 47                         15,637                                17.6 %                                                                       2,341
Boston                                                                                        26                          7,007                                10.7 %                                                                       2,819
Seattle                                                                                       37                          7,096                                 8.0 %                                                                       2,161
Other Markets                                                               1         136   -- %                                 1,146
                                                                 -------------------- ---------- -------------------- --------- -------------------- -------------- -------------------- -------------------- -------------------- --------------
Total                                                                                        300                         76,513                               100.0 %                                                                       2,674
                                                                                                                                                                                                               
Unconsolidated Properties                                                                      2         945   --       --
                                                                                      ---------- -------------------- --------- -------------------- -------------- -------------------- -------------------- -------------------- --------------
                                                                                                                                                                                                               
Grand Total                                                                                  302                         77,458                               100.0 %                                                            $          2,674
                                                                                      ==========                      =========                      ============== ====================                      ==================== ==============
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 December 31, 2016
 
                                                                                                                                         Properties                                  Apartment Units                    
                                                                                                                                               ------------------------------------                     -----------------------------------------------------
         Wholly Owned Properties                                                                                                       280                                                                    72,445
         Master-Leased Properties - Consolidated                                                                                                            3                                                                       853
         Partially Owned Properties - Consolidated                                                                                                         17                                                                     3,215
         Partially Owned Properties - Unconsolidated                                                                                                        2                                 945  
                                                                                                                                               -------------- --------------------                      -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                   
                                                                                                                                                          302                              77,458  
                                                                                                                                               ============== ====================                      ==================== ========== ====================
                                                                                                        
------------------------------------- -------------------------- -------------------- -------------------------------------------------------- -------------------------------------------------------- ------------------------------------------------------------------------- ---------------------
 
                                                                                                                                     Portfolio Rollforward Q4 2016
                                                                                                                                           ($ in thousands)
 
                                                                                                   Properties                                                Apartment                                                       Sales Price                                               Disposition
                                                                                                                                                               Units                                                                                                                      Yield
                                                                                      ----------------------------------                       ----------------------------------                       --------------------------------------------------                        -------------------
                                                       9/30/2016                                 308                                                   78,826
Dispositions:
   Consolidated:
      Rental Properties                                                                           (7 )                                                 (1,609 )                                                            $   (243,500 )                                               (6.6 %)
Completed Developments - Consolidated                                                              1                                   241  
                                                                                      -------------- --------------------                      -------------- --------------------
                                                                                                                                                                                                                                                                                   
                                                      12/31/2016                                 302             77,458  
                                                                                      ============== ==================== ==================== ============== ====================
                                                                                                        
------------------------------------- -------------------------- -------------------- -------------------------------------------------------- -------------------------------------------------------- ------------------------------------------------------------------------- ---------------------
 
                                                                                                                                      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                                                                          (98 )                                                (29,440 )                                                            $ (6,811,503 )                                               (5.4 %)
      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                                                              5                                                    2,141
Configuration Changes                                                                 --                                    29  
                                                                                      -------------- --------------------                      -------------- --------------------
                                                                                                                                                                                                                                                                                   
                                                      12/31/2016                                 302                                77,458  
                                                                                      ============== ====================                      ============== ====================
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
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                   Fourth Quarter 2016 vs. Fourth Quarter 2015
                                                                                                                                          Same Store Results/Statistics for 70,881 Same Store Apartment
                                                                                                                                                                      Units
                                                                                                                                                 $ in thousands (except for Average Rental Rate)
                                                                                                                                                                                                        
                                                                                                                    Results                                                                                                                                                    Statistics
                                          ----------------------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                       
     Description                                         Revenues                                                  Expenses                                                     NOI                                                    Average                                         Physical                                  Turnover
                                                                                                                                                                                                                                       Rental                                          Occupancy
                                                                                                                                                                                                                                        Rate
--------------------                      -----------------------------------                        ---------------------------------                        -----------------------------------                        --------------------------------                        -------------------                       -------------------
                                                                                                                                                                                                                                                                                                                            
       Q4 2016                                 $   558,608                                                $ 159,201                                                $   399,407                                                $  2,629                                                 96.0 %                                    11.2 %
       Q4 2015                                 $   542,833                             $ 150,720                             $   392,113                             $  2,552                              96.1 %                                    11.4 %
                                          ------ --------- --------------------                      ------ ------- --------------------                      ------ --------- --------------------                      ------ ------ --------------------                      ---------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                                                                                            
       Change                                  $    15,775                             $   8,481                             $     7,294                             $     77                              (0.1 %)                                   (0.2 )%
                                          ====== ========= ====================                      ====== ======= ====================                      ====== ========= ====================                      ====== ====== ====================                      ========== =========                      ========== =========
                                                                                                                                                                                                                                                                                                                            
       Change                                          2.9 %                                                    5.6 %                                                      1.9 %                                                   3.0 %
                                                                                        
-------------------- -------------------- ---------------------------------------------------------- -------------------------------------------------------- ---------------------------------------------------------- ------------------------------------------------------- ----------------------------------------- ---------------------
                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                   Fourth Quarter 2016 vs. Third Quarter 2016
                                                                                                                                          Same Store Results/Statistics for 73,068 Same Store Apartment
                                                                                                                                                                      Units
                                                                                                                                                 $ in thousands (except for Average Rental Rate)
                                                                                                                                                                                                                                                                                                                            
                                                                                                                    Results                                                                                                                                                    Statistics
                                          ----------------------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                       
     Description                                         Revenues                                                  Expenses                                                     NOI                                                    Average                                         Physical                                  Turnover
                                                                                                                                                                                                                                       Rental                                          Occupancy
                                                                                                                                                                                                                                        Rate
--------------------                      -----------------------------------                        ---------------------------------                        -----------------------------------                        --------------------------------                        -------------------                       -------------------
                                                                                                                                                                                                                                                                                                                            
       Q4 2016                                 $   579,539                                                $ 164,789                                                $   414,750                                                $  2,647                                                 96.0 %                                    11.2 %
       Q3 2016                                 $   580,395                             $ 173,780                             $   406,615                             $  2,648                              96.0 %                                    17.5 %
                                          ------ --------- --------------------                      ------ ------- --------------------                      ------ --------- --------------------                      ------ ------ --------------------                      ---------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                                                                                            
       Change                                  $      (856 )                                              $  (8,991 )                                              $     8,135                             $     (1 )                                                0.0 %                                    (6.3 %)
                                          ====== ========= ====================                      ====== ======= ====================                      ====== ========= ====================                      ====== ====== ====================                      ========== =========                      ========== =========
                                                                                                                                                                                                                                                                                                                            
       Change                                         (0.1 %)                                                  (5.2 %)                                                     2.0 %                                                   0.0 %
                                                                                        
-------------------- -------------------- ---------------------------------------------------------- -------------------------------------------------------- ---------------------------------------------------------- ------------------------------------------------------- ----------------------------------------- ---------------------
                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                  2016 vs. 2015
                                                                                                                                          Same Store Results/Statistics for 69,879 Same Store Apartment
                                                                                                                                                                      Units
                                                                                                                                                 $ in thousands (except for Average Rental Rate)
                                                                                                                                                                                                                                                                                                                            
                                                                                                                    Results                                                                                                                                                    Statistics
                                          ----------------------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                       
     Description                                         Revenues                                                  Expenses                                                     NOI                                                    Average                                         Physical                                  Turnover
                                                                                                                                                                                                                                       Rental                                          Occupancy
                                                                                                                                                                                                                                        Rate
--------------------                      -----------------------------------                        ---------------------------------                        -----------------------------------                        --------------------------------                        -------------------                       -------------------
                                                                                                                                                                                                                                                                                                                            
        2016                                   $ 2,177,304                                                $ 634,120                                                $ 1,543,184                                                $  2,597                                                 96.0 %                                    54.4 %
        2015                                   $ 2,099,166                             $ 613,924                             $ 1,485,242                             $  2,504                              96.1 %                                    54.5 %
                                          ------ --------- --------------------                      ------ ------- --------------------                      ------ --------- --------------------                      ------ ------ --------------------                      ---------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                                                                                            
       Change                                  $    78,138                             $  20,196                             $    57,942                             $     93                              (0.1 %)                                   (0.1 %)
                                          ====== ========= ====================                      ====== ======= ====================                      ====== ========= ====================                      ====== ====== ====================                      ========== =========                      ========== =========
                                                                                                                                                                                                                                                                                                                            
       Change                                          3.7 %                                                    3.3 %                                                      3.9 %                                                   3.7 %
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
                                                                                                                                                                                                                                     Fourth Quarter 2016 vs. Fourth Quarter 2015
                                                                                                                                                                                                                                     Same Store Results/Statistics by Market
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                           Increase (Decrease) from Prior Year’s Quarter
                                                                                                                                                                                                                                                                                              ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
             Markets/Metro Areas                                       Apartment                                  Q4 2016                                         Q4 2016                                        Q4 2016                                   Q4 2016                                  Revenues                                  Expenses                                     NOI                                     Average                                  Physical                                  Turnover
                                                                         Units                                     % of                                           Average                                       Weighted                                  Turnover                                                                                                                                                                 Rental                                   Occupancy
                                                                                                                  Actual                                          Rental                                         Average                                                                                                                                                                                                            Rate
                                                                                                                    NOI                                            Rate                                         Physical
                                                                                                                                                                                                               Occupancy %
-------------------------------------------                      --------------------                      -------------------                       ------------------------------                       -------------------                       -------------------                       -------------------                       -------------------                       -------------------                       -------------------                       -------------------                       -------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Los Angeles                                                                    14,038                            17.4 %                                                 $      2,365                            95.9 %                                    13.4 %                                     4.8 %                                     3.6 %                                     5.3 %                                     4.7 %                                    (0.2 %)                                    0.1 %
San Diego                                                                       3,505                             4.2 %                                                        2,198                            96.0 %                                    14.3 %                                     5.0 %                                     2.5 %                                     5.9 %                                     4.8 %                                     0.0 %                                     0.1 %
Orange County                                                                   3,490                             3.8 %                                     2,011                            96.2 %                                    11.7 %                                     6.4 %                                     6.4 %                                     6.3 %                                     6.3 %                                     0.1 %                                     0.7 %
                                                                 --------------------                      ---------- ---------                      -------------------- ----------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------
Subtotal - Southern California                                    21,033                            25.4 %                                                        2,278                            96.0 %                                    13.2 %                                     5.1 %                                     3.8 %                                     5.6 %                                     4.9 %                                    (0.1 %)                                    0.2 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Washington DC                                                                  15,475                            18.9 %                                                        2,341                            96.0 %                                    10.3 %                                     2.2 %                                     6.5 %                                     0.5 %                                     1.9 %                                     0.3 %                                    (0.5 %)
New York                                                                       10,007                            18.6 %                                                        3,680                            96.2 %                                     8.4 %                                     0.3 %                                     7.4 %                                    (3.1 %)                                    0.8 %                                    (0.3 %)                                   (0.3 %)
San Francisco                                                                  11,019                            18.0 %                                                        2,908                            96.2 %                                    11.2 %                                     3.6 %                                     5.0 %                                     3.2 %                                     3.7 %                                    (0.1 %)                                   (0.6 %)
Boston                                                                          6,913                            11.3 %                                                        2,819                            95.7 %                                    10.1 %                                     1.3 %                                     2.5 %                                     0.9 %                                     2.1 %                                    (0.6 %)                                    0.5 %
Seattle                                                                         6,298                             7.7 %                                                        2,166                            95.6 %                                    11.9 %                                     5.9 %                                     9.4 %                                     4.7 %                                     5.7 %                                     0.0 %                                    (0.5 %)
Other Markets                                                                     136                             0.1 %                                                        1,146                            96.9 %                                    14.7 %                                     5.9 %                                    11.8 %                                     3.5 %                                     5.6 %                                     0.3 %                                     0.0 %
                                                                                                                                                                                                                                                                                                                   
                                                                 --------------------                      ---------------------                     --------------------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------
Total                                                                          70,881                           100.0 %                                                 $      2,629                            96.0 %                                    11.2 %                                     2.9 %                                     5.6 %                                     1.9 %                                     3.0 %                                    (0.1 %)                                   (0.2 %)
                                                                 ====================                      ========== =========                      ==================== ==========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Fourth Quarter 2016 vs. Third Quarter 2016
                                                                                                                                                                                                                                     Same Store Results/Statistics by Market
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                                                                            Increase (Decrease) from Prior Quarter
                                                                                                                                                                                                                                                                                              ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
             Markets/Metro Areas                                       Apartment                                  Q4 2016                                         Q4 2016                                        Q4 2016                                   Q4 2016                                  Revenues               Expenses                  NOI                  Average               Physical               Turnover
                                                                         Units                                     % of                                           Average                                       Weighted                                  Turnover                                                                                                                                                                 Rental                                   Occupancy
                                                                                                                  Actual                                          Rental                                         Average                                                                                                                                                                                                            Rate
                                                                                                                    NOI                                            Rate                                         Physical
                                                                                                                                                                                                               Occupancy %
-------------------------------------------                      --------------------                      -------------------                       ------------------------------                       -------------------                       -------------------                       -------------------                       -------------------                       -------------------                       -------------------                       -------------------                       -------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Los Angeles                                                                    14,336                            17.0 %                                                 $      2,361                            95.9 %                                    13.5 %                                     0.3 %                                    (4.1 %)                                    2.1 %                                     0.4 %                                    (0.3 %)                                   (5.5 %)
San Diego                                                                       3,505                             4.0 %                                                        2,198                            96.0 %                                    14.3 %                                    (0.2 %)                                   (4.2 %)                                    1.3 %                                     0.4 %                                    (0.6 %)                                   (4.8 %)
Orange County                                                                   3,684                             4.0 %                                     2,028                            96.2 %                                    11.7 %                                     0.9 %                                    (7.6 %)                                    3.8 %                                     0.8 %                                     0.1 %                                    (5.4 %)
                                                                 --------------------                      ---------- ---------                      -------------------- ----------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------
Subtotal - Southern California                                    21,525                            25.0 %                                                        2,278                            96.0 %                                    13.3 %                                     0.3 %                                    (4.6 %)                                    2.2 %                                     0.5 %                                    (0.2 %)                                   (5.4 %)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
New York                                                                       10,632                            19.5 %                                                        3,751                            96.1 %                                     8.5 %                                    (0.8 %)                                   (6.6 %)                                    2.6 %                                    (0.4 %)                                    0.0 %                                    (5.3 %)
Washington DC                                                                  15,475                            18.2 %                                                        2,341                            96.0 %                                    10.3 %                                    (0.6 %)                                   (5.8 %)                                    1.7 %                                    (0.5 %)                                   (0.1 %)                                   (6.7 %)
San Francisco                                                                  11,292                            18.0 %                                                        2,948                            96.2 %                                    11.2 %                                     0.2 %                                    (5.1 %)                                    1.9 %                                    (0.4 %)                                    0.6 %                                    (8.6 %)
Boston                                                                          6,913                            10.9 %                                                        2,819                            95.7 %                                    10.1 %                                     0.9 %                                    (4.0 %)                                    2.8 %                                     0.2 %                                    (0.1 %)                                   (8.4 %)
Seattle                                                                         7,095                             8.3 %                                                        2,161                            95.6 %                                    11.7 %                                    (0.6 %)                                   (2.0 %)                                   (0.1 %)                                    0.6 %                                    (0.3 %)                                   (4.4 %)
Other Markets                                                                     136                             0.1 %                                                        1,146                            96.9 %                                    14.7 %                                    (0.3 %)                                    1.5 %                                    (1.0 %)                                    0.4 %                                    (0.7 %)                                   (0.7 %)
                                                                                                                                                                                                                                                                                                                   
                                                                 --------------------                      ---------------------                     --------------------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------
Total                                                                          73,068                           100.0 %                                                 $      2,647                            96.0 %                                    11.2 %                                    (0.1 %)                                   (5.2 %)                                    2.0 %                                     0.0 %                                     0.0 %                                    (6.3 %)
                                                                 ====================                      ========== =========                      ==================== ==========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     2016 vs. 2015
                                                                                                                                                                                                                                     Same Store Results/Statistics by Market
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                                                                              Increase (Decrease) from Prior Year
                                                                                                                                                                                                                                                                                              ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
             Markets/Metro Areas                                       Apartment                                   2016                                            2016                                           2016                                      2016                                    Revenues               Expenses                  NOI                  Average               Physical               Turnover
                                                                         Units                                     % of                                           Average                                       Weighted                                  Turnover                                                                                                                                                                 Rental                                   Occupancy
                                                                                                                  Actual                                          Rental                                         Average                                                                                                                                                                                                            Rate
                                                                                                                    NOI                                            Rate                                         Physical
                                                                                                                                                                                                               Occupancy %
-------------------------------------------                      --------------------                      -------------------                       ------------------------------                       -------------------                       -------------------                       -------------------                       -------------------                       -------------------                       -------------------                       -------------------                       -------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Los Angeles                                                                    13,698                            17.0 %                                                 $      2,306                            96.1 %                                    61.1 %                                     5.6 %                                     2.4 %                                     6.9 %                                     5.3 %                                     0.1 %                                    (0.1 %)
San Diego                                                                       3,505                             4.2 %                                                        2,161                            96.2 %                                    64.1 %                                     5.5 %                                     2.4 %                                     6.6 %                                     5.2 %                                     0.1 %                                    (0.9 %)
Orange County                                                                   3,490                             3.9 %                                     1,969                            96.3 %                                    53.1 %                                     6.0 %                                     2.1 %                                     7.3 %                                     5.8 %                                     0.3 %                                    (0.9 %)
                                                                 --------------------                      ---------- ---------                      -------------------- ----------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------
Subtotal - Southern California                                    20,693                            25.1 %                                                        2,224                            96.1 %                                    60.2 %                                     5.6 %                                     2.4 %                                     6.9 %                                     5.4 %                                     0.1 %                                    (0.5 %)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
New York                                                                       10,007                            19.3 %                                                        3,674                            96.3 %                                    42.1 %                                     1.6 %                                     5.3 %                                    (0.2 %)                                    1.9 %                                    (0.3 %)                                    0.5 %
Washington DC                                                                  15,475                            19.3 %                                                        2,330                            96.0 %                                    50.7 %                                     1.5 %                                     2.2 %                                     1.1 %                                     1.2 %                                     0.1 %                                     0.3 %
San Francisco                                                                  10,846                            17.9 %                                                        2,873                            96.1 %                                    59.0 %                                     6.4 %                                     4.2 %                                     7.1 %                                     6.8 %                                    (0.4 %)                                    0.5 %
Boston                                                                          6,711                            11.1 %                                                        2,773                            95.6 %                                    53.6 %                                     2.2 %                                    (1.4 %)                                    3.7 %                                     2.7 %                                    (0.5 %)                                    1.7 %
Seattle                                                                         6,011                             7.2 %                                                        2,116                            95.6 %                                    57.5 %                                     6.1 %                                     8.5 %                                     5.2 %                                     5.7 %                                     0.0 %                                    (3.8 %)
Other Markets                                                                     136                             0.1 %                                                        1,118                            98.0 %                                    54.4 %                                     7.0 %                                     7.4 %                                     6.8 %                                     5.9 %                                     0.9 %                                    (7.4 %)
                                                                                                                                                                                                                                                                                                                   
                                                                 --------------------                      ---------------------                     --------------------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------
Total                                                                          69,879                           100.0 %                                                 $      2,597                            96.0 %                                    54.4 %                                     3.7 %                                     3.3 %                                     3.9 %                                     3.7 %                                    (0.1 %)                                   (0.1 %)
                                                                 ====================                      ========== =========                      ==================== ==========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                           Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                               Fourth Quarter 2016 vs. Fourth Quarter 2015
                                                                                                                      Same Store Operating Expenses for 70,881 Same Store Apartment
                                                                                                                                                  Units
                                                                                                                                             $ in thousands
                                                                                                                                              
                                                                       Actual                                               Actual                                                          $                                                       %                                    % of Actual
                                                                       Q4 2016                                              Q4 2015                                                      Change                                                  Change                                    Q4 2016
                                                                                                                                                                                                                                                                                          Operating
                                                                                                                                                                                                                                                                                          Expenses
                                                          ------------------------------                       ------------------------------                       ----------------------------------------------                        -------------------                       -------------------
                                                                                                                                                                                                                                                                                     
Real estate taxes                                                            $     67,209                                         $     63,367                                         $  3,842                                                  6.1 %                                    42.2 %
On-site payroll (1)                                                                35,275                                               33,804                                            1,471                                                  4.4 %                                    22.2 %
Utilities (2)                                                                      22,212                                               21,665                                              547                                                  2.5 %                                    14.0 %
Repairs and maintenance (3)                                                        19,742                                               18,085                                            1,657                                                  9.2 %                                    12.4 %
Insurance                                                                           4,350                                                4,217                                              133                                                  3.2 %                                     2.7 %
Leasing and advertising                                                             2,569                                                2,156                                              413                                                 19.2 %                                     1.6 %
Other on-site operating expenses (4)                             7,844                             7,426                           418                               5.6 %                                     4.9 %
                                                          -------------------- ----------                      -------------------- ----------                      -------------------- ------ --------------------                      ---------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                                                     
Same store operating expenses                                                $    159,201                                         $    150,720                                         $  8,481                               5.6 %                                   100.0 %
                                                          ==================== ==========                      ==================== ==========                      ==================== ====== ====================                      ========== =========                      ========== =========
                                                                                       
------------------------------------ -------------------- ---------------------------------------------------- ---------------------------------------------------- --------------------------------------------------------------------- ----------------------------------------- ---------------------
                                                                                                                                                                                                                                                                                     
                                                                                                                                              2016 vs. 2015
                                                                                                                      Same Store Operating Expenses for 69,879 Same Store Apartment
                                                                                                                                                  Units
                                                                                                                                             $ in thousands
                                                                                                                                                                                  
                                                                       Actual                                               Actual                                                          $                                                       %                                    % of Actual
                                                                        2016                                                 2015                                                        Change                                                  Change                                     2016
                                                                                                                                                                                                                                                                                          Operating
                                                                                                                                                                                                                                                                                          Expenses
                                                          ------------------------------                       ------------------------------                       ----------------------------------------------                        -------------------                       -------------------
                                                                                                                                                                                                                                                                                     
Real estate taxes                                                            $    264,689                                         $    249,916                                         $ 14,773                                                  5.9 %                                    41.7 %
On-site payroll (1)                                                               141,996                                              137,731                                            4,265                                                  3.1 %                                    22.4 %
Utilities (2)                                                                      88,261                                               91,586                                           (3,325 )                                               (3.6 %)                                   13.9 %
Repairs and maintenance (3)                                                        81,600                                               79,366                                            2,234                                                  2.8 %                                    12.9 %
Insurance                                                                          17,055                                               16,428                                              627                                                  3.8 %                                     2.7 %
Leasing and advertising                                                             9,928                                                8,341                                            1,587                                                 19.0 %                                     1.6 %
Other on-site operating expenses (4)                            30,591                            30,556                            35                               0.1 %                                     4.8 %
                                                          -------------------- ----------                      -------------------- ----------                      -------------------- ------ --------------------                      ---------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                                                     
Same store operating expenses                                                $    634,120                                         $    613,924                                         $ 20,196                               3.3 %                                   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 December 31, 2016
                                                                                                         ($ in thousands)
                                                                                                                                
                                                                                            Amounts (1)                                 % of Total                             Weighted                            Weighted
                                                                                                                                                                                Average                             Average
                                                                                                                                                                               Rates (1)                          Maturities
                                                                                                                                                                                                                    (years)
                                                                               ----------------------------------                       ---------------                       --------                       --------------------
                                                                                                                                                                                                              
Secured                                                                                           $      4,119,181                                45.8 %                      4.34 %                                          6.0
Unsecured                                                                             4,868,077                                54.2 %                      4.48 %                                         10.0
                                                                               -------------------- --------------                      -------------- -                      ---- ----                      --------------------
                                                                                                                                                                                                              
        Total                                                                                     $      8,987,258                               100.0 %                      4.42 %                                          8.2
                                                                               ==================== ==============                      ============== =                      ==== ====                      ====================
                                                                                                                                                                                                              
Fixed Rate Debt:
    Secured - Conventional                                                           $      3,483,389                                38.7 %                      4.95 %                                          4.9
    Unsecured - Public                                                   4,397,829                                49.0 %                      4.90 %                                         10.8
                                                                               -------------------- --------------                      -------------- -                      ---- ----                      --------------------
                                                                                                                                                                                                              
        Fixed Rate Debt                                                               7,881,218                                87.7 %                      4.92 %                                          8.2
                                                                               -------------------- --------------                      -------------- -                      ---- ----                      --------------------
                                                                                                                                                                                                              
Floating Rate Debt:
    Secured - Conventional                                                                      7,042                                 0.1 %                      0.56 %                                         16.9
    Secured - Tax Exempt                                                                      628,750                                 7.0 %                      1.06 %                                         11.8
    Unsecured - Public (2)                                                                    450,250                                 5.0 %                      1.28 %                                          2.5
    Unsecured - Revolving Credit Facility                                              --                      --                        1.37 %                                          5.0
    Unsecured - Commercial Paper Program (3)                                19,998                                 0.2 %                      0.90 %                               --
                                                                               -------------------- --------------                      -------------- -                      ---- ----                      --------------------
                                                                                                                                                                                                              
        Floating Rate Debt                                                            1,106,040                                12.3 %                      1.13 %                                          8.0
                                                                               -------------------- --------------                      -------------- -                      ---- ----                      --------------------
                                                                                                                                                                                                              
Total                                                                                             $      8,987,258                               100.0 %                      4.42 %                                          8.2
                                                                               ==================== ==============                      ============== =                      ==== ====                      ====================
(1) Net of the effect of any derivative instruments. Weighted
average rates are for the year ended December 31, 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 December 31, 2016, the weighted average maturity on the
Company’s outstanding commercial paper was 4 days.
Note: The Company capitalized interest of approximately $51.5
million and $59.9 million during the years ended December 31, 2016
and 2015, respectively. The Company capitalized interest of
approximately $9.8 million and $14.1 million during the quarters
ended December 31, 2016 and 2015, respectively.
Note: The Company recorded approximately $24.3 million and $8.6
million of net debt discount/deferred derivative settlement
amortization as additional interest expense during the years ended
December 31, 2016 and 2015, respectively. The Company recorded
approximately $5.4 million and $2.8 million of net debt
discount/deferred derivative settlement amortization as additional
interest expense during the quarters ended December 31, 2016 and
2015, respectively.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                      Debt Maturity Schedule as of December 31, 2016
                                                                                                                                                                                     ($ in thousands)
                                                                                                                                                                                                                                       
          Year                                                        Fixed                                              Floating                                                    Total                                            % of Total                                                Weighted                                           Weighted
                                                                    Rate (1)                                             Rate (1)                                                                                                                                                                                Average Rates                                         Average
                                                                                                                                                                                                                                                                                                                   on Fixed                                           Rates on
                                                                                                                                                                                                                                                                                                                 Rate Debt (1)                                     Total Debt (1)
------------------------                      -------------------------------------------------    -------------------------------------------------                            -------------------------------------------------                        -------------------------                       --------------------------                       ------------------------------
                                                                                                                                                                                                                                                                                                                                                           
          2017                                                   $   605,158                                          $    23,300                      (2)                                         $   628,458                                             6.9 %                                           6.19 %                                               5.99 %
          2018                                                        83,634                                              100,735                                                                      184,369                                             2.0 %                                           5.57 %                                               3.24 %
          2019                                                       807,680                                              478,357                                                                    1,286,037                                            14.1 %                                           5.47 %                                               3.96 %
          2020                                                     1,679,590                                               10,500                                                                    1,690,090                                            18.6 %                                           5.49 %                                               5.46 %
          2021                                                       928,557                                               12,600                                                                      941,157                                            10.3 %                                           4.64 %                                               4.59 %
          2022                                                       266,447                                               13,800                                                                      280,247                                             3.1 %                                           3.27 %                                               3.14 %
          2023                                                     1,327,965                                               15,300                                                                    1,343,265                                            14.8 %                                           3.74 %                                               3.71 %
          2024                                                         2,498                                               17,100                                                                       19,598                                             0.2 %                                           4.97 %                                               1.23 %
          2025                                                       452,625                                               19,600                                                                      472,225                                             5.2 %                                           3.38 %                                               3.27 %
          2026                                                       594,783                                               21,700                                                                      616,483                                             6.8 %                                           3.59 %                                               3.49 %
          2027+                                 1,177,033        457,665                              1,634,698                         18.0 %                                           4.54 %                                               3.46 %
                                              -------------------- --------- --------------------  -------------------- --------- --------------------                          -------------------- --------- --------------------                      ----- --------------------                      ------ --------------------                      ---------- --------------------
        Subtotal                                                   7,925,970                                            1,170,657                                                                    9,096,627                                           100.0 %                                           4.72 %                                               4.20 %
Deferred Financing Costs                                             (33,605 )                                             (9,012 )                                                                    (42,617 )                                           N/A                                              N/A                                                  N/A
   Premium/(Discount)                             (11,147 )                         (55,605 )                                                 (66,752 )                                           N/A                           N/A                               N/A  
                                              -------------------- --------- --------------------  -------------------- --------- --------------------                          -------------------- --------- --------------------                      ----- --------------------                      ------ --------------------                      ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                           
          Total                                                  $ 7,881,218                       $ 1,106,040                                               $ 8,987,258                        100.0 %                                           4.72 %                                               4.20 %
                                              ==================== ========= ====================  ==================== ========= ====================                          ==================== ========= ====================                      ===== ====================                      ====== ====================                      ========== ====================
(1) Net of the effect of any derivative instruments. Weighted
average rates are as of December 31, 2016.
(2) Includes $20.0 million in principal outstanding on the Company’s
unsecured commercial paper program. The Company may borrow up to a
maximum of $500.0 million on the program subject to market
conditions.
 
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                  Equity Residential
                                                                                    Unsecured Debt Summary as of December 31, 2016
                                                                                                   ($ in thousands)
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 
                                                                               Interest                                     Due                                                       Amount
                                                                                 Rate                                      Date
                                                                         --------------------                      --------------------                      ------------------------------------------------------
                                                                                                                                                              
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
                                                                                2.850%                                   11/01/26                                                        500,000
                                                                                4.500%                                   07/01/44                                                        750,000
                                                                                4.500%                                   06/01/45                                                        300,000
Deferred Financing Costs and Unamortized (Discount)                                                                                                                   (42,171 )
                                                                                                                                                             -------------------- -------------- --------------------
                                                                                                                                                              
                                                                                                                                                                    4,397,829  
                                                                                                                                                             -------------------- -------------- --------------------
Floating Rate Notes:
                                                                                  (1)                                    07/01/19                                                        450,000
Fair Value Derivative Adjustments                                                 (1)                                    07/01/19                                                          1,857
Deferred Financing Costs and Unamortized (Discount)                                                                                                                    (1,607 )
                                                                                                                                                             -------------------- -------------- --------------------
                                                                                                                                                              
                                                                                                                                                                      450,250  
                                                                                                                                                             -------------------- -------------- --------------------
                                                                                                                                                              
Line of Credit and Commercial Paper:
Revolving Credit Facility (2) (3)                                            LIBOR+0.825%                                01/10/22                                                 --
Commercial Paper Program (2) (4)                                                                                                                                                          20,000
Unamortized Commercial Paper (Discount)                                                                                                                                    (2 )
                                                                                                                                                             -------------------- -------------- --------------------
                                                                                                                                                              
                                                                                                                                                                       19,998  
                                                                                                                                                             -------------------- -------------- --------------------
                                                                                                                                                              
Total Unsecured Debt                                                                                                                                                            $      4,868,077  
                                                                                                                                                             ==================== ============== ====================
(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)                      On November 3, 2016, the Company replaced its existing $2.5 billion
                         facility with a new $2.0 billion unsecured revolving credit facility
                         maturing January 10, 2022. The interest rate on advances under the
                         new credit facility will generally be LIBOR plus a spread (currently
                         0.825%) and an annual facility fee (currently 12.5 basis points).
                         Both the spread and the facility fee are dependent on the credit
                         rating of the Company’s long term debt. As of December 31, 2016,
                         there was approximately $1.96 billion available on the Company’s
                         unsecured revolving credit facility (net of $20.6 million which was
                         restricted/dedicated to support letters of credit and $20.0 million
                         outstanding on the commercial paper program).
(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
                         0.90% for the year ended December 31, 2016 and a weighted average
                         maturity of 4 days as of December 31, 2016.
 
-------------------------------------------------------------------------------------------------------------------------
                                                   Equity Residential
-------------------------------------------------------------------------------------------------------------------------
                                        Selected Unsecured Public Debt Covenants
                                                               
                                                                               December 31,             September 30,
                                                                                   2016                     2016
                                                                               ------------         --------------------
                                                                                                     
Total Debt to Adjusted Total Assets (not to exceed 60%)                            35.4%                    32.8%
                                                                                                     
Secured Debt to Adjusted Total Assets (not to exceed 40%)                          16.2%                    16.0%
                                                                                                     
Consolidated Income Available for Debt Service to
    Maximum Annual Service Charges
    (must be at least 1.5 to 1)                                                    3.73                     3.88
                                                                                                     
Total Unsecured Assets to Unsecured Debt                                          390.8%                   447.4%
    (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
 
                                           December 31,           September 30,
                                                                  2016                                      2016
                                                          --------------------                      --------------------
                                                                                                     
Total debt to Normalized EBITDA                                   5.74x                                     5.20x
                                                                                                     
Net debt to Normalized EBITDA                                     5.65x                                     4.85x
                                                                                                     
Unencumbered NOI as a % of total NOI                              71.1%                                     70.9%
Note:   See page 24 for the Normalized EBITDA reconciliations.
                                                                                                                   
-------------------------------------------------- -------------------- ----------------------------------------------------- ---------------------------------------------------- ------------------------------------------------------------------------- -------------------------------------------------- -----------------------------------
                                                                                                                                                                Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                
                                                                                                                                                     Capital Structure as of December 31, 2016
                                                                                                                                        (Amounts in thousands except for share/unit and per share amounts)
                                                                                                                                                                                                                                                                                                                 
    Secured Debt                                                                                                                                                                                       $                      4,119,181                                             45.8 %
    Unsecured Debt                                                                                                                                                                                         4,868,077                          54.2 %
                                                                                                                                                                                   --------------------- ------------------------------                      -------------------- ------ -
                                                                                                                                                                                                                                                                                                                 
Total Debt                                                                                                                                                                                                                    8,987,258                                            100.0 %                               26.8 %
                                                                                                                                                                                                                                                                                                                 
    Common Shares (includes Restricted Shares)                                               365,870,924                            96.2 %
    Units (includes OP Units and Restricted Units)                         14,626,075                             3.8 %
                                                                        -------------------- -----------                      ---------- --------------------
                                                                                                                                                                                                                                                                                                                 
Total Shares and Units                                                                       380,496,999                           100.0 %
Common Share Price at December 31, 2016                                                    $       64.36
                                                                        -------------------- -----------
                                                                                                                                                                                                                             24,488,787                                             99.8 %
Perpetual Preferred Equity (see below)                                                                                                                                                                        37,280                           0.2 %
                                                                                                                                                                                   --------------------- ------------------------------                      -------------------- ------ -
                                                                                                                                                                                                                                                                                                                 
Total Equity                                                                                                                                                                                              24,526,067                                            100.0 %                               73.2 %
                                                                                                                                                                                                                                                                                                                 
Total Market Capitalization                                                                                                                                                         $  33,513,325                                                                                 100.0 %
                                                                                                                   
-------------------------------------------------- -------------------- ----------------------------------------------------- ---------------------------------------------------- ------------------------------------------------------------------------- -------------------------------------------------- -----------------------------------
                                                                                                                                                                                                                                                                                                                 
                                                                                                                                                Perpetual Preferred Equity as of December 31, 2016
                                                                                                                                           (Amounts in thousands except for share and per share amounts)
                                                                                                                                                              
                      Series                                                       Redemption                                            Outstanding                                                    Liquidation                                                      Annual                                               Annual
                                                                                      Date                                                 Shares                                                          Value                                                        Dividend                                             Dividend
                                                                                                                                                                                                                                                                        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
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           
                                                                                         2016                             2015                            Q4 2016                              Q4 2015
                                                                                     -----------                      -----------                      -----------                      --------------------
                                                                                                                                                                                         
Weighted Average Amounts Outstanding for Net Income Purposes:
    Common Shares - basic                                                            365,002,012                      363,497,518                      365,255,902                               363,827,809
    Shares issuable from assumed conversion/vesting of:
        - OP Units                                                                    13,827,099                       13,575,927                       13,824,671                                13,552,095
        - long-term compensation shares/units                                          3,163,201                        3,546,058                        2,779,631                                 3,839,809
                                                                                     -----------                      -----------                      -----------                      --------------------
                                                                                                                                                                                         
    Total Common Shares and Units - diluted                                          381,992,312                      380,619,503                      381,860,204                               381,219,713
                                                                                     ===========                      ===========                      ===========                      ====================
                                                                                                                                                                                         
Weighted Average Amounts Outstanding for FFO and Normalized FFO
Purposes:
    Common Shares - basic                                                            365,002,012                      363,497,518                      365,255,902                               363,827,809
    OP Units - basic                                                                  13,827,099                       13,575,927                       13,824,671                                13,552,095
                                                                                     -----------                      -----------                      -----------                      --------------------
                                                                                                                                                                                         
    Total Common Shares and OP Units - basic                                         378,829,111                      377,073,445                      379,080,573                               377,379,904
    Shares issuable from assumed conversion/vesting of:
        - long-term compensation shares/units                                          3,163,201                        3,546,058                        2,779,631                                 3,839,809
                                                                                     -----------                      -----------                      -----------                      --------------------
                                                                                                                                                                                         
    Total Common Shares and Units - diluted                                          381,992,312                      380,619,503                      381,860,204                               381,219,713
                                                                                     ===========                      ===========                      ===========                      ====================
                                                                                                                                                                                         
Period Ending Amounts Outstanding:
    Common Shares (includes Restricted Shares)                                       365,870,924                      364,755,444
    Units (includes OP Units and Restricted Units)                                    14,626,075                       14,427,164
                                                                                     -----------                      -----------
                                                                                                                                                                                         
    Total Shares and Units                                                           380,496,999                      379,182,608
                                                                                     ===========                      ===========
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                Equity Residential
                                                                                 Partially Owned Entities as of December 31, 2016
                                                                       (Amounts in thousands except for property and apartment unit amounts)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                  
                                                                                                     Consolidated                                                             Unconsolidated
                                                                                  --------------------------------------------------                     ---------------------------------------------------------
                                                                                                                                                          
Total properties                                                                         17                                       2  
                                                                                  -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                          
Total apartment units                                                                 3,215                                     945  
                                                                                  -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                          
Operating information for the year ended 12/31/16 (at 100%):
    Operating revenue                                                                                $  90,634                                                              $         31,829
    Operating expenses                                                               21,647                                  11,111  
                                                                                  -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                          
    Net operating income                                                                                68,987                                                                        20,718
    Property management                                                                                  3,190                                                                           851
    General and administrative/other                                                                       328                                                                            83
    Depreciation                                                                     20,764                                  16,011  
                                                                                  -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                          
    Operating income                                                                                    44,705                                                                         3,773
    Interest and other income                                                                               53                                                                --
    Other expenses                                                                                          (8 )                                                              --
    Interest:
        Expense incurred, net                                                                          (13,857 )                                                                      (8,289 )
        Amortization of deferred financing costs                                       (345 )                                                       (1 )
                                                                                  -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                          
    Income (loss) before income and other taxes and (loss)
      from investments in unconsolidated entities                                                       30,548                                                                        (4,517 )
    Income and other tax (expense) benefit                                                                 (73 )                                                                         (13 )
    (Loss) from investments in unconsolidated entities                               (1,439 )                                           --  
                                                                                  -------------------- ------- --------------------                      -------------------- -------------- --------------------
    Net income (loss)                                                                                $  29,036                                           $         (4,530 )
                                                                                  ==================== ======= ====================                      ==================== ============== ====================
                                                                                                                                                          
Debt - Secured (1):
        EQR Ownership (2)                                                                            $ 236,357                                                              $         29,085
        Noncontrolling Ownership                                                     64,753                                 116,339  
                                                                                  -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                          
Total (at 100%)                                                                                      $ 301,110                                           $        145,424  
                                                                                  ==================== ======= ====================                      ==================== ============== ====================
(1)   All debt is non-recourse to the Company.
(2)                      Represents the Company’s current equity ownership interest.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Development and Lease-Up Projects as of December 31, 2016
                                                                                                                                                                                                                                     (Amounts in thousands except for project and apartment unit amounts)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Projects                                               Location              No. of                 Total                            Total                            Total Book                               Total                                      Percentage                                              Percentage                             Percentage       Estimated      Estimated
                                                                                                                  Apartment                                 Capital                                           Book Value                                              Value Not                                                  Debt                                                           Completed                                                                   Leased                                                   Occupied                          Completion                       Stabilization
                                                                                                                    Units                                    Cost                                               to Date                                               Placed in                                                                                                                                                                                                                                                                                           Date                              Date
                                                                                                                                                                                                                                                                       Service
----------------------------------------------------                      -----------------                      ---------                      -----------------------------                       -----------------------------                       ----------------------------------                       ----------------------------------                       -------------------------------------------------                        ------------------------------------------------------                        ---------------                       ----------                      -------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Projects Under Development:
----------------------------------------------------
The Alton (formerly Millikan)                                             Irvine, CA                                   344                                         $   102,331                                         $   101,907                                         $         39,993                                         $ --                                                  96 %                                                                          23 %                                                     17 %                        Q1 2017                           Q1 2018
455 Eye Street                                                            Washington, DC                               174                                              73,157                                              58,558                                                   58,558                                           --                                                  72 %                                                              --                                           --                          Q3 2017                           Q2 2018
855 Brannan (formerly 801 Brannan)                                        San Francisco, CA                            449                                             304,035                                             208,268                                                  208,268                                           --                                                  66 %                                                              --                                           --                          Q3 2017                           Q1 2019
Helios (formerly 2nd & Pine)                                              Seattle, WA                                  398                                             215,787                                             180,505                                                  180,505                                           --                                                  81 %                                                              --                                           --                          Q3 2017                           Q2 2019
Cascade                                                                   Seattle, WA                                  477                                             176,378                                             123,462                                                  123,462                                           --                                                  68 %                                                              --                                           --                          Q3 2017                           Q2 2019
100 K Street                                                              Washington, DC                               222                           88,023                           26,382                                26,382                        --                                                   9 %                                                              --                                           --                          Q4 2018                           Q4 2019
                                                                                                                 ---------                      -------------------- ---------                      -------------------- ---------                      -------------------- --------------                      -------------------- --------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Projects Under Development                                                                                           2,064                          959,711                          699,082                               637,168                        --
                                                                                                                 ---------                      -------------------- ---------                      -------------------- ---------                      -------------------- --------------                      -------------------- --------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Completed Not Stabilized (1):
----------------------------------------------------
Potrero 1010                                                              San Francisco, CA                            453                                             224,474                                             219,668                                           --                                           --                                                                                                                                97 %                                                     96 %                       Completed                          Q1 2017
340 Fremont (formerly Rincon Hill)                                        San Francisco, CA                            348                                             292,054                                             286,996                                           --                                           --                                                                                                                                80 %                                                     73 %                       Completed                          Q2 2017
One Henry Adams                                                           San Francisco, CA                            241                                             172,337                                             162,647                                           --                                           --                                                                                                                                26 %                                                     22 %                       Completed                          Q4 2017
Altitude (formerly Village at Howard Hughes)                              Los Angeles, CA                              545                                             193,231                                             191,702                        --                        --                                                                                                                                54 %                                                     52 %                       Completed                          Q1 2018
                                                                                                                 ---------                                           ---------                                           ---------                      -------------------- --------------                      -------------------- --------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Projects Completed Not Stabilized                                                                                    1,587                          882,096                          861,013                        --                        --
                                                                                                                 ---------                      -------------------- ---------                      -------------------- ---------                      -------------------- --------------                      -------------------- --------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Completed and Stabilized During the
Quarter:
----------------------------------------------------
Vista 99 (formerly Tasman)                                                San Jose, CA                                 554                          204,223                          202,884                        --                        --                                                                                                                                94 %                                                     93 %                       Completed                        Stabilized
                                                                                                                 ---------                      -------------------- ---------                      -------------------- ---------                      -------------------- --------------                      -------------------- --------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Projects Completed and Stabilized During the Quarter                                                                   554                          204,223                          202,884                        --                        --
                                                                                                                 ---------                      -------------------- ---------                      -------------------- ---------                      -------------------- --------------                      -------------------- --------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Total Development Projects                                                                                           4,205                                         $ 2,046,030                                         $ 1,762,979                                         $        637,168                                         $ --
                                                                                                                 =========                      ==================== =========                      ==================== =========                      ==================== ==============                      ==================== ==============
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Land Held for Development                                                                                              N/A                              N/A                                         $   118,816                                         $        118,816                                         $ --
                                                                                                                 =========                      ==================== =========                      ==================== =========                      ==================== ==============                      ==================== ==============
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                              Total Capital                                                                 Q4 2016
                                                                                                                                                                                                                                                                                                                                                                                                  Cost                                                                        NOI
                                                                                                                                                                                                                                                                                                                                                                          -------------------------------------------------                        ------------------------------------------------------
NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS
Projects Under Development                                                                                                                                                                                                                                                                                                                                                                   $   959,711                                                              $            (94 )
Completed Not Stabilized                                                                                                                                                                                                                                                                                                                                                                         882,096                                                                         4,653
Completed and Stabilized During the Quarter                                                                                                                                                                                                                                                                                                                                   204,223                                   3,757  
                                                                                                                                                                                                                                                                                                                                                                          -------------------- --------- --------------------                      -------------------- -------------- --------------------
        Total Development NOI Contribution                                                                                                                                                                                                                                                                                                                                                   $ 2,046,030                                           $          8,316  
                                                                                                                                                                                                                                                                                                                                                                          ==================== ========= ====================                      ==================== ============== ====================
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.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Repairs and Maintenance Expenses and Capital Expenditures to Real
                                                                                                                                                                                                                                     Estate
                                                                                                                                                                                                                                     For the Year Ended December 31, 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                                      69,879                                         $ 81,600                         $ 1,168                                         $ 65,294                         $  934                                         $ 146,894                         $ 2,102                                         $ 75,298                         $ 1,077                                         $ 80,890                         $ 1,158                                         $ 156,188                       $ 2,235                      (8)                                         $ 303,082                         $ 4,337
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Non-Same Store Properties (6)                               6,634                                            4,920                             932                                            3,667                            695                                             8,587                           1,627                                            4,494                             851                                            7,685                           1,456                                            12,179                         2,307                                                                     20,766                           3,934
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Other (7)                                          --                         4,875                                                         5,535                                                        10,410                                                         2,744                                                         1,066                                                          3,810                                                                                14,220
                                                   --------------                      -------------------- ------                                                      -------------------- ------                                                     -------------------- -------                                                      -------------------- ------                                                      -------------------- ------                                                      -------------------- -------                                                                             -------------------- -------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Total                                                      76,513                                         $ 91,395                                                                         $ 74,496                                                                        $ 165,891                                                                         $ 82,536                                                                         $ 89,641                                                                         $ 172,177                                                                                                $ 338,068
                                                   ==============                      ==================== ======                                                      ==================== ======                                                     ==================== =======                                                      ==================== ======                                                      ==================== ======                                                      ==================== =======                                                                             ==================== =======
(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 $47.0 million spent during 2016 on apartment unit
                         renovations/rehabs (primarily kitchens and baths) on approximately
                         4,200 same store apartment units (equating to approximately $11,200
                         per apartment unit rehabbed) designed to reposition these units for
                         higher rental levels in their respective markets. During 2017, 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 5,279
                         apartment units.
                          
(7)                      Other - Primarily includes expenditures for properties sold and
                         properties under development.
                          
(8)                      The Company estimates that during 2017 it will spend approximately
                         $2,600 per apartment unit of capital expenditures, inclusive of
                         apartment unit renovation/rehab costs, or $1,900 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
                                                                                        -------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------
                                                                                                          December 31, 2016                                     September 30, 2016                                                                  Q4                                                      Q3                                                     Q2                                                         Q1                                                                            Q4
                                                                                        -----------------------------------------------------                     -----------------------------------------------------                     ---------------------------------------------------------                     --------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
Net income                                                                                                 $  4,480,104                                                              $  4,391,443                                                              $        302,381                                                              $ 217,492                                                              $        228,400                                                              $      3,731,831                                                              $        213,720
Interest expense incurred, net                                                                                  482,246                                                                   496,857                                                                        95,930                                                                 86,352                                                                        86,472                                                                       213,492                                                                       110,541
Amortization of deferred financing costs                                                                         12,633                                                                    13,067                                                                         2,633                                                                  2,261                                                                         2,345                                                                         5,394                                                                         3,067
Depreciation                                                                                                    705,649                                                                   709,275                                                                       177,407                                                                179,230                                                                       176,127                                                                       172,885                                                                       181,033
Income and other tax expense (benefit) (includes discontinued                                  1,625                               1,419                                     425                              426                                     416                                     358                                     219  
operations)
                                                                                        -------------------- ---------- --------------------                      -------------------- ---------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
EBITDA                                                                                                        5,682,257                                                                 5,612,061                                                                       578,776                                                                485,761                                                                       493,760                                                                     4,123,960                                                                       508,580
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Property acquisition costs (other expenses)                                                                       1,466                                                                     2,256                                                                            14                                                                     41                                                                            76                                                                         1,335                                                                           804
Write-off of pursuit costs (other expenses)                                                                       4,092                                                                     4,265                                                                           713                                                                    816                                                                         1,115                                                                         1,448                                                                           886
(Income) loss from investments in unconsolidated entities                                                        (4,801 )                                                                  (6,483 )                                                                       1,045                                                                 (7,750 )                                                                         800                                                                         1,104                                                                          (637 )
Net (gain) loss on sales of land parcels                                                                        (15,731 )                                                                 (15,759 )                                                                          28                                                                 (4,037 )                                                              --                                                                       (11,722 )                                                              --
(Gain) loss on sale of investment securities and other investments                                              (58,409 )                                                                 (58,555 )                                                                           7                                                                 (3,260 )                                                                     (54,600 )                                                                        (556 )                                                                        (139 )
(interest and other income)
Executive compensation program duplicative costs and retirement                                                   1,436                                                                     3,413                                                                           359                                                                    359                                                                           359                                                                           359                                                                         2,336
benefit obligations
Insurance/litigation settlement or reserve income (interest and                                                  (3,228 )                                                                  (3,098 )                                                                        (337 )                                                               (1,517 )                                                                      (1,321 )                                                                         (53 )                                                                        (207 )
other income)
Insurance/litigation/environmental settlement or reserve expense                                                  4,024                                                                     7,169                                                                        (5,074 )                                                                9,339                                                                             3                                                                          (244 )                                                                      (1,929 )
(other expenses)
Other (interest and other income)                                                                                   (63 )                                                                     (63 )                                                              --                                                                    (63 )                                                              --                                                                --                                                                --
Net (gain) on sales of discontinued operations                                                                      (43 )                                                                     (43 )                                                              --                                                                    (28 )                                                              --                                                                           (15 )                                                              --
Net (gain) on sales of real estate properties                                             (4,044,055 )                                           (3,910,313 )                                                 (173,184 )                                           (90,036 )                                                  (57,356 )                            (3,723,479 )                                                  (39,442 )
                                                                                        -------------------- ---------- --------------------                      -------------------- ---------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Normalized EBITDA                                                                                          $  1,566,945                                           $  1,634,850                                           $        402,347                                           $ 389,625                                           $        382,836                        $        392,137                                           $        470,252  
                                                                                        ==================== ========== ====================                      ==================== ========== ====================                      ==================== ============== ====================                      ==================== ======= ====================                      ==================== ============== ==================== -------------------- ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Balance Sheet Items:                                                                                      December 31, 2016                                                        September 30, 2016
------------------------------------------------------------------                      --------------------------------------------------                        --------------------------------------------------
Total debt                                                                                                 $  8,987,258                                                              $  8,498,787
Cash and cash equivalents                                                                                       (77,207 )                                                                (517,586 )
Mortgage principal reserves/sinking funds                                                    (58,652 )                                              (56,404 )
                                                                                        -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Net debt                                                                                                   $  8,851,399                                           $  7,924,797  
                                                                                        ==================== ========== ====================                      ==================== ========== ====================
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Adjustments from FFO to Normalized FFO
                                                                                                                                                                                                                                     (Amounts in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                  Year Ended December 31,                                                                                                                                                                                              Quarter Ended December 31,
                                                                                                      ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                2016                                                       2015                                                     Variance                                                                        2016                                                       2015                                                     Variance
                                                                                                      ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
Impairment                                                                                                               $ --                                           $ --                                           $ --                                           $ --                                           $ --                                           $ --  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Asset impairment and valuation allowances                                                               --                          --                          --                          --                          --                          --  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Archstone indirect costs ((income) loss from investments in                                                                           920                                                                       (15,922 )                                                                      16,842                                                                           264                                                                           551                                                                          (287 )
unconsolidated entities) (A)
Property acquisition costs (other expenses)                                                                                         1,466                                                                         1,008                                                                           458                                                                            14                                                                           804                                                                          (790 )
Write-off of pursuit costs (other expenses)                                                                      4,092                                   3,208                                     884                                     713                                     886                                    (173 )
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Property acquisition costs and write-off of pursuit costs                                                        6,478                                 (11,706 )                                                   18,184                                     991                                   2,241                                  (1,250 )
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Prepayment premiums/penalties (interest expense)                                                                                  114,666                                                                --                                                                       114,666                                                                         2,247                                                                --                                                                         2,247
Write-off of unamortized deferred financing costs (interest expense)                                                                3,854                                                                           594                                                                         3,260                                                                           491                                                                           506                                                                           (15 )
Write-off of unamortized (premiums)/discounts/OCI (interest expense)                                                                4,494                                                                        (1,379 )                                                                       5,873                                                                --                                                                --                                                                --
Noncontrolling Interests share of debt extinguishment costs                                                                        (1,394 )                                                              --                                                                        (1,394 )                                                                      (1,394 )                                                              --                                                                        (1,394 )
Loss due to ineffectiveness of forward starting swaps (interest                                                                        74                                                                         3,003                                                                        (2,929 )                                                                          74                                                                --                                                                            74
expense)
Premium on redemption of Preferred Shares                                                               --                                   3,486                                  (3,486 )                                           --                                     697                                    (697 )
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Debt extinguishment (gains) losses, including prepayment penalties,                                            121,694                                   5,704                                 115,990                                   1,418                                   1,203                                     215  
preferred share redemptions and non-cash convertible debt discounts
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Net (gain) loss on sales of land parcels                                                                                          (15,731 )                                                                           1                                                                       (15,732 )                                                                          28                                                                --                                                                            28
Net (gain) loss on sales of unconsolidated entities - non-operating                                                      (81 )                                                                      (2,358 )                                                                       2,277                                                                --                                                                        (2,016 )                                                                       2,016
assets
(Gain) loss on sale of investment securities and other investments                                             (58,409 )                                                     (526 )                                                  (57,883 )                                                        7                                    (139 )                                                      146  
(interest and
other income) (B)
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
(Gains) losses on sales of non-operating assets, net of income and                                             (74,221 )                                                   (2,883 )                                                  (71,338 )                                                       35                                  (2,155 )                                                    2,190  
other tax
expense (benefit)
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Executive compensation program duplicative costs and retirement                                                                     1,436                                                                        11,976                                                                       (10,540 )                                                                         359                                                                         2,336                                                                        (1,977 )
benefit obligations (C)
Insurance/litigation settlement or reserve income (interest and                                                                    (3,228 )                                                                      (5,977 )                                                                       2,749                                                                          (337 )                                                                        (207 )                                                                        (130 )
other income)
Insurance/litigation/environmental settlement or reserve expense                                                                    4,024                                                                        (2,796 )                                                                       6,820                                                                        (5,074 )                                                                      (1,929 )                                                                      (3,145 )
(other expenses) (D)
Other (interest and other income)                                                                                  (63 )                                                     (302 )                                                      239                          --                          --                          --  
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Other miscellaneous items                                                                                        2,169                                   2,901                                    (732 )                                                   (5,052 )                                                      200                                  (5,252 )
                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                      ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
Adjustments from FFO to Normalized FFO                                                                                   $         56,120                                           $         (5,984 )                                                            $         62,104                                           $         (2,608 )                                                            $          1,489                                           $         (4,097 )
                                                                                                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
(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 year ended December 31, 2015, the amount
also includes approximately $18.6 million received related to the
favorable settlement of a lawsuit.
 
(B) For the year ended December 31, 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 year and quarter ended December 31, 2016, the entire amounts
have been recorded to general and administrative expense. For the
year ended December 31, 2015, $1.3 million and $8.0 million has been
recorded to property management expense and general and
administrative expense, respectively. For the quarter ended December
31, 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 year ended December 31, 2015 as a
result of certain adjustments for retirement benefit obligations.
 
(D) For the year ended December 31, 2016, includes a $3.1 million
litigation reserve and a $4.7 million environmental reserve,
partially offset by a $3.5 million reversal of certain Archstone
non-cash purchase accounting reserves.
 
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 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.
 
                                                        2017 Normalized FFO Guidance (per share
                                                                       diluted)
-------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              
                                                                                  Q1 2017                                          2017
                                                                          ---------------------                      --------------------------------
                                                                                                                      
Expected Normalized FFO Per Share                                             $0.71 to $0.75                                  $3.05 to $3.15
                                                                                                                      
                                                         2017 Same Store Assumptions (see Note
                                                                        below)
-------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      
Physical occupancy                                                                                                                 95.7%
Revenue change                                                                                                                 1.0% to 2.25%
Expense change                                                                                                                 3.0% to 4.0%
NOI change                                                                                                                     0.0% to 2.0%
                                                                                                                      
Note: Approximately 25 basis point change in NOI percentage = $0.01
per share change in EPS/FFO per share/Normalized FFO per share.
                                                                                                                      
                                                             2017 Transaction Assumptions
-------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      
Consolidated rental acquisitions                                                                                              $500.0 million
Consolidated rental dispositions                                                                                              $500.0 million
Spread between Acquisition Cap Rate and Disposition Yield                                                                     75 basis points
                                                                                                                      
                                                                 2017 Debt Assumptions
-------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      
Weighted average debt outstanding                                                                                      $8.8 billion to $9.2 billion
Weighted average interest rate (reduced for capitalized interest)                                                                  4.12%
Interest expense, net (on a Normalized FFO basis)                                                                    $362.6 million to $379.0 million
Capitalized interest                                                                                                  $23.0 million to $28.0 million
                                                                                                                      
                                                            2017 Other Guidance Assumptions
-------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      
Property management expense                                                                                           $83.0 million to $85.0 million
General and administrative expense (see Note below)                                                                   $50.0 million to $52.0 million
Interest and other income                                                                                                      $0.5 million
Income and other tax expense                                                                                           $0.5 million to $1.5 million
Debt offerings                                                                                                       $300.0 million to $500.0 million
Equity ATM share offerings                                                                                                  No amounts budgeted
Preferred share offerings                                                                                                   No amounts budgeted
Weighted average Common Shares and Units - Diluted                                                                             383.2 million
                                                                                                                      
Note: Normalized FFO guidance excludes a duplicative charge of
approximately $0.4 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 net gain on sales of real estate properties in
accordance with GAAP to Economic Gain:
                                                                            Year Ended December 31, 2016
                                        ------------------------------------------------------------------------------------------------------------------------------------------
                                               Net Gain on Sales                     Accumulated                      Economic Gain
                                                of Real Estate                                       Depreciation Gain
                                                  Properties
                                        -----------------------------                       -------------------------------                        -----------------------------
                                                                                                                                                                                   
Starwood sale                                              $ 3,161,097                                         $ (1,179,210 )                                         $ 1,981,887
Woodland Park sale                                             289,329                                              (30,442 )                                             258,887
River Tower sale                                               184,389                                              (32,076 )                                             152,313
Other sales                                 409,240                          (185,222 )                          224,018
                                        -------------------- ---------                      -------------------- ---------- -                      -------------------- ---------
                                                                                                                                                                                   
Totals                                                     $ 4,044,055                                         $ (1,426,950 )                                         $ 2,617,105
                                        ==================== =========                      ==================== ========== =                      ==================== =========
 
-----------------------------------------------------------------------------------------------------------------------------
                                                      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 2016                                                                   Actual 2015                                                                     Actual                                                                        Actual                                                                    Expected                                                               Expected
                                                                                                       Per Share                                                                     Per Share                                                                      Q4 2016                                                                       Q4 2015                                                                    Q1 2017                                                                 2017
                                                                                                                                                                                                                                                                   Per Share                                                                     Per Share                                                                  Per Share                                                              Per Share
                                                                               ------------------------------------------------------                        ------------------------------------------------------                        ------------------------------------------------------                        ------------------------------------------------------                        -----------------------------------------------                        -----------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
EPS - Diluted                                                                                     $          11.68                                                              $           2.36                                                              $           0.75                                                              $           0.55                                                             $0.32 to $0.36                                                         $1.92 to $2.02
Add: Depreciation expense                                                                                     1.83                                                                          2.00                                                                          0.46                                                                          0.47                                                                  0.46                                                                   1.93
Less: Net gain on sales                                                                  (10.57 )                                                    (0.88 )                                                    (0.41 )                                                    (0.10 )                                                               (0.10)                                                                 (0.84)
                                                                               -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      --------------------------------------------------                     --------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
FFO per share - Diluted                                                                                       2.94                                                                          3.48                                                                          0.80                                                                          0.92                                                              0.68 to 0.72                                                           3.01 to 3.11
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Asset impairment and valuation allowances                                                           --                                                                --                                                                --                                                                --                                                             --                                                         --
Property acquisition costs and write-off of pursuit costs                                                     0.02                                                                         (0.03 )                                                              --                                                                          0.01                                                             --                                                              0.01
Debt extinguishment (gains) losses, including prepayment                                                      0.31                                                                          0.01                                                                --                                                                --                                                                  0.03                                                                   0.03
penalties, preferred share redemptions and non-cash
convertible debt discounts
(Gains) losses on sales of non-operating assets, net of                                                      (0.19 )                                                                       (0.01 )                                                              --                                                                --                                                             --                                                         --
income and other tax expense (benefit)
Other miscellaneous items                                                                  0.01                                    0.01                                   (0.01 )                                           --                                          --                                                         --
                                                                               -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      --------------------------------------------------                     --------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Normalized FFO per share - Diluted                                                                $           3.09                                           $           3.46                                           $           0.79                                           $           0.93                                          $0.71 to $0.75                                                         $3.05 to $3.15
                                                                               ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================================================                     ==================================================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Lease-Up NOI - Represents NOI for development properties (i)
in various stages of lease-up and (ii) where lease-up has been
completed but the properties were not stabilized (defined as having
achieved 90% occupancy for three consecutive months) for all of the
current and comparable periods presented.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
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 operating income per
the consolidated statements of operations to NOI, along with rental
income, operating expenses and NOI per the consolidated statements
of operations allocated between same store and non-same store
results (see page 11):
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                   Year Ended December 31,                                                                                                                            Quarter Ended December 31,
                                                                                                                                                                                                                                           ---------------------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                     2016                                                                          2015                                                                       2016                                                                   2015
                                                                                                                                                                                                                                           ---------------------------------------------------------                     ---------------------------------------------------------                     --------------------------------------------------                     --------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Operating income                                                                                                                                                                                                                                              $        856,086                                                              $      1,009,238                                                              $ 224,070                                                              $ 287,058
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Adjustments:
    Fee and asset management revenue                                                                                                                                                                                                                                    (3,567 )                                                                      (8,387 )                                                                 (216 )                                                               (1,974 )
    Property management                                                                                                                                                                                                                                                 82,015                                                                        86,206                                                                 18,012                                                                 21,555
    General and administrative                                                                                                                                                                                                                                          57,840                                                                        64,664                                                                 10,432                                                                 14,046
    Depreciation                                                                                                                                                                                                                                    705,649                                 765,895                          177,407                          181,033  
                                                                                                                                                                                                                                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Total NOI                                                                                                                                                                                                                                                     $      1,698,023                                           $      1,917,616                                           $ 429,705                                           $ 501,718  
                                                                                                                                                                                                                                           ==================== ============== ====================                      ==================== ============== ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Rental income:
    Same store                                                                                                                                                                                                                                                $      2,177,304                                                              $      2,099,166                                                              $ 558,608                                                              $ 542,833
    Non-same store                                                                                                                                                                                                                                  244,929                                 637,412                           46,665                          158,386  
                                                                                                                                                                                                                                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Total rental income                                                                                                                                                                                                                                                  2,422,233                                                  2,736,578                                                                605,273                                                                701,219
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Operating expenses:
    Same store                                                                                                                                                                                                                                                         634,120                                                                       613,924                                                                159,201                                                                150,720
    Non-same store                                                                                                                                                                                                                                   90,090                                 205,038                           16,367                           48,781  
                                                                                                                                                                                                                                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Total operating expenses                                                                                                                                                                                                                                               724,210                                                                       818,962                                                                175,568                                                                199,501
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
NOI:
    Same store                                                                                                                                                                                                                                                       1,543,184                                                                     1,485,242                                                                399,407                                                                392,113
    Non-same store                                                                                                                                                                                                                                  154,839                                 432,374                           30,298                          109,605  
                                                                                                                                                                                                                                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Total NOI                                                                                                                                                                                                                                                     $      1,698,023                                           $      1,917,616                                           $ 429,705                                           $ 501,718  
                                                                                                                                                                                                                                           ==================== ============== ====================                      ==================== ============== ====================                      ==================== ======= ====================                      ==================== ======= ====================
 
-------------------------------------------------------------------------------------------------------------------------------
                                                       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 2017 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.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170131006395r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170131006395/en/

SOURCE: Equity Residential

Equity Residential 
Marty McKenna, (312) 928-1901


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