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

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 Equity Residential Reports First Quarter 2017 Results
   Tuesday, April 25, 2017 4:25:04 PM ET

Equity Residential (EQR ) today reported results for the quarter ended March 31, 2017. All per share results are reported as available to common shares/units on a diluted basis.

"Rental demand remains very strong across the nation’s coastal, gateway cities but new apartment supply continues to pressure new lease rates," said David J. Neithercut, Equity Residential’s President and CEO. "Nevertheless, we achieved renewal rates of 4.3% in the first quarter and, as we approach our primary leasing season with occupancy of 96%, we are well positioned to meet our operating goals for the year."

First Quarter 2017

Earnings per Share (EPS) for the first quarter of 2017 was $0.39 compared to $9.76 in the first quarter of 2016. The difference is due primarily to $9.64 per share in higher property sale gains as a result of the Company’s significant property sales activity in 2016, the various adjustment items listed on page 22 of this release and the items described below.



FFO (Funds from Operations), as defined by the National Association of Real Estate Investment Trusts (NAREIT), was $0.76 per share for the first quarter of 2017 compared to $0.47 per share in the first quarter of 2016. The difference is due primarily to the various adjustment items listed on page 22 of this release and the items described below.

Normalized FFO for the first quarter of 2017 was $0.74 per share compared to $0.76 per share in the first quarter of 2016. The following items impacted Normalized FFO per share in the quarter:

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

-- A positive impact of approximately $0.03 per share from Lease-Up NOI;

-- A positive impact of approximately $0.01 per share from lower corporate overhead (property management and general and administrative expenses); and

-- A negative impact of approximately $0.08 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 5, 25 and 26 of this release and the Company has included guidance for Normalized FFO on page 23 and FFO and EPS on page 26 of this release.

Same Store Results

On a same store first quarter to first quarter comparison, which includes 71,000 apartment units, revenues increased 2.6%, expenses increased 3.9% and NOI increased 2.1%. Average Rental Rate increased 2.6% and occupancy was flat at 95.9%.

Investment Activity

The Company sold one consolidated apartment property, consisting of 304 apartment units, for a sale price of $47.6 million at a Disposition Yield of 6.7% and generating an Unlevered IRR of 17.1%. The Company also sold one land parcel located in New York City for a sale price of approximately $33.5 million. The Company did not acquire any properties during the first quarter of 2017.

Also during the quarter, the Company stabilized its 453 unit Potrero 1010 development in San Francisco at a Development Yield of 5.9%.

Second Quarter 2017 Guidance

The Company has established an EPS guidance range of $0.51 to $0.55 for the second quarter of 2017. The difference between the Company’s first quarter 2017 EPS of $0.39 and the midpoint of the second quarter 2017 guidance range of $0.53 is due primarily to higher expected gains on property sales and the items described below.

The Company has established an FFO guidance range of $0.75 to $0.79 per share for the second quarter of 2017. The difference between the Company’s first quarter 2017 FFO of $0.76 per share and the midpoint of the second quarter 2017 guidance range of $0.77 per share is due primarily to lower expected debt extinguishment costs, lower expected gains on land parcel sales and the items described below.

The Company has established a Normalized FFO guidance range of $0.75 to $0.79 per share for the second quarter of 2017. The difference between the Company’s first quarter 2017 Normalized FFO of $0.74 per share and the midpoint of the second quarter 2017 guidance range of $0.77 per share is due primarily to:

-- A positive impact of approximately $0.02 per share from increased same store NOI;

-- A positive impact of approximately $0.01 per share from Lease-Up NOI;

-- A positive impact of approximately $0.01 per share from lower total interest expense; and

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

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 24 through 27 of this release.

Second Quarter 2017 Earnings and Conference Call

Equity Residential expects to announce second quarter 2017 results on Tuesday, July 25, 2017 and host a conference call to discuss those results at 10:00 a.m. CT on Wednesday, July 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 renters want to live, work and play. Equity Residential owns or has investments in 302 properties consisting of 77,498 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, April 26, at 10:00 a.m. Central. Please visit the Investor section of the Company’s web site at www.equityapartments.com for the link. A replay of the web cast will be available for two weeks at this site.

 
                                                                                                     Equity Residential
                                                                                            Consolidated Statements of Operations
                                                                                        (Amounts in thousands except per share data)
                                                                                                         (Unaudited)
 
                                                                                                                  Quarter Ended March 31,                                            
                                                                                          ---------------------------------------------------------------------------------------------------------------------------------
                                                                                                          2017                                 2016               
                                                                                          --------------------------------------------------------                      ---------------------------------------------------
REVENUES
  Rental income                                                                                              $        603,920                                                              $   616,165
  Fee and asset management                                                                             180                              2,918  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------
     Total revenues                                                                                604,100                            619,083  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                        
EXPENSES
  Property and maintenance                                                                                            102,608                                                                  109,165
  Real estate taxes and insurance                                                                                      81,728                                                                   80,196
  Property management                                                                                                  22,252                                                                   23,495
  General and administrative                                                                                           14,173                                                                   16,717
  Depreciation                                                                                     178,968                            172,885  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------
     Total expenses                                                                                399,729                            402,458  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                        
Operating income                                                                                                      204,371                                                                  216,625
                                                                                                                                                                                                        
  Interest and other income                                                                                               601                                                                    3,058
  Other expenses                                                                                                       (1,090 )                                                                 (2,556 )
  Interest:
     Expense incurred, net                                                                                           (106,210 )                                                               (213,492 )
     Amortization of deferred financing costs                                                       (2,296 )                                              (5,394 )
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------
Income (loss) before income and other taxes, (loss) from investments                                                   95,376                                                                   (1,759 )
in
unconsolidated entities, net gain on sales of real estate
properties and land
parcels and discontinued operations
Income and other tax (expense) benefit                                                                                   (262 )                                                                   (350 )
(Loss) from investments in unconsolidated entities                                                                     (1,073 )                                                                 (1,104 )
Net gain on sales of real estate properties                                                                            36,707                                                                3,723,479
Net gain on sales of land parcels                                                                   19,193                             11,722  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------
Income from continuing operations                                                                                     149,941                                                                3,731,988
Discontinued operations, net                                                                --                               (157 )
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------
Net income                                                                                                            149,941                                                                3,731,831
Net (income) attributable to Noncontrolling Interests:
  Operating Partnership                                                                                                (5,411 )                                                               (143,309 )
  Partially Owned Properties                                                                          (788 )                                                (764 )
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------
Net income attributable to controlling interests                                                                      143,742                                                                3,587,758
Preferred distributions                                                                               (773 )                                                (773 )
                                                                                          -------------------- -------------- --------------------                      -------------------- --------- --------------------
Net income available to Common Shares                                                                        $        142,969                                           $ 3,586,985  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================
                                                                                                                                                                                                        
Earnings per share - basic:
Income from continuing operations available to Common Shares                                                 $           0.39                                           $      9.84  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================
Net income available to Common Shares                                                                        $           0.39                                           $      9.84  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================
Weighted average Common Shares outstanding                                                         366,605                            364,592  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================
                                                                                                                                                                                                        
Earnings per share - diluted:
Income from continuing operations available to Common Shares                                                 $           0.39                                           $      9.76  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================
Net income available to Common Shares                                                                        $           0.39                                           $      9.76  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================
Weighted average Common Shares outstanding                                                         382,280                            382,243  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================
                                                                                                                                                                                                        
Distributions declared per Common Share outstanding                                                          $        0.50375                                           $   8.50375  
                                                                                          ==================== ============== ====================                      ==================== ========= ====================
 
                                                                                                            Equity Residential
                                                                                      Consolidated Statements of Funds From Operations and Normalized
                                                                                                           Funds From Operations
                                                                                               (Amounts in thousands except per share data)
                                                                                                                (Unaudited)
 
                                                                                                                               Quarter Ended March 31,                                              
                                                                                                    --------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                    2017                                    2016                 
                                                                                                    --------------------------------------------------------                      --------------------------------------------------------
Net income                                                                                                             $        149,941                                                              $      3,731,831
Net (income) attributable to Noncontrolling Interests - Partially                                                     (788 )                                                                        (764 )
Owned Properties
Preferred distributions                                                                                         (773 )                                                     (773 )
                                                                                                    -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income available to Common Shares and Units                                                                                 148,380                                                                     3,730,294
                                                                                                                                                                                                                       
Adjustments:
  Depreciation                                                                                                                  178,968                                                                       172,885
  Depreciation - Non-real estate additions                                                                          (1,298 )                                                                      (1,408 )
  Depreciation - Partially Owned Properties                                                                           (832 )                                                                        (994 )
  Depreciation - Unconsolidated Properties                                                                           1,142                                                                         1,233
  Net (gain) on sales of unconsolidated entities - operating assets                                                                 (68 )                                                              --
  Net (gain) on sales of real estate properties                                                                                 (36,707 )                                                                  (3,723,479 )
  Discontinued operations:
     Net (gain) on sales of discontinued operations                                                   --                                     (15 )
                                                                                                    -------------------- -------------- --------------------                      -------------------- -------------- --------------------
FFO available to Common Shares and Units                                                                                        289,585                                                                       178,516
                                                                                                                                                                                                                       
Adjustments (see page 22 for additional detail):
  Asset impairment and valuation allowances                                                                              --                                                                --
  Write-off of pursuit costs                                                                                                        715                                                                         1,448
  Debt extinguishment (gains) losses, including prepayment penalties,                                                            12,304                                                                       120,097
  preferred
  share redemptions and non-cash convertible debt discounts
  (Gains) losses on sales of non-operating assets, net of income and                                                            (18,892 )                                                                     (11,977 )
  other tax
  expense (benefit)
  Other miscellaneous items                                                                                        9                                   1,397  
                                                                                                    -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Normalized FFO available to Common Shares and Units                                                                    $        283,721                                           $        289,481  
                                                                                                    ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                       
FFO                                                                                                                    $        290,358                                                              $        179,289
Preferred distributions                                                                                         (773 )                                                     (773 )
                                                                                                    -------------------- -------------- --------------------                      -------------------- -------------- --------------------
FFO available to Common Shares and Units                                                                               $        289,585                                           $        178,516  
                                                                                                    ==================== ============== ====================                      ==================== ============== ====================
FFO per share and Unit - basic                                                                                         $           0.76                                           $           0.47  
                                                                                                    ==================== ============== ====================                      ==================== ============== ====================
FFO per share and Unit - diluted                                                                                       $           0.76                                           $           0.47  
                                                                                                    ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                       
Normalized FFO                                                                                                         $        284,494                                                              $        290,254
Preferred distributions                                                                                         (773 )                                                     (773 )
                                                                                                    -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Normalized FFO available to Common Shares and Units                                                                    $        283,721                                           $        289,481  
                                                                                                    ==================== ============== ====================                      ==================== ============== ====================
Normalized FFO per share and Unit - basic                                                                              $           0.75                                           $           0.77  
                                                                                                    ==================== ============== ====================                      ==================== ============== ====================
Normalized FFO per share and Unit - diluted                                                                            $           0.74                                           $           0.76  
                                                                                                    ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                       
Weighted average Common Shares and Units outstanding - basic                                                 379,504                                 378,289  
                                                                                                    ==================== ============== ====================                      ==================== ============== ====================
Weighted average Common Shares and Units outstanding - diluted                                               382,280                                 382,243  
                                                                                                    ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                       

Note: See page 22 for additional detail regarding the adjustments from FFO to Normalized FFO. See pages 24 through 27 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)
 
                                                                                       March 31,                                            December 31,
                                                                                                            2017                                                   2016               
                                                                                              ----------------------------------------------------                      ----------------------------------------------------
ASSETS
Investment in real estate
  Land                                                                                                           $  5,902,186                                                              $  5,899,862
  Depreciable property                                                                                             18,798,554                                                                18,730,579
  Projects under development                                                                                          666,228                                                                   637,168
  Land held for development                                                                        109,136                             118,816  
                                                                                              -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Investment in real estate                                                                                          25,476,104                                                                25,386,425
  Accumulated depreciation                                                                      (5,526,586 )                                           (5,360,389 )
                                                                                              -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Investment in real estate, net                                                                                     19,949,518                                                                20,026,036
Cash and cash equivalents                                                                                              42,139                                                                    77,207
Investments in unconsolidated entities                                                                                 59,483                                                                    60,141
Deposits - restricted                                                                                     76,053                                                                    76,946
Escrow deposits - mortgage                                                                                68,031                                                                    64,935
Other assets                                                                                       413,114                             398,883  
                                                                                              -------------------- ---------- --------------------                      -------------------- ---------- --------------------
        Total assets                                                                                             $ 20,608,338                                           $ 20,704,148  
                                                                                              ==================== ========== ====================                      ==================== ========== ====================
                                                                                                                                                                                                         
LIABILITIES AND EQUITY
Liabilities:
  Mortgage notes payable, net                                                                                    $  3,766,762                                                              $  4,119,181
  Notes, net                                                                                                        4,848,477                                                                 4,848,079
  Line of credit and commercial paper                                                                                 314,686                                                                    19,998
  Accounts payable and accrued expenses                                                                               165,640                                                                   147,482
  Accrued interest payable                                                                                             74,383                                                                    60,946
  Other liabilities                                                                                                   308,466                                                                   350,466
  Security deposits                                                                                                    63,124                                                                    62,624
  Distributions payable                                                                            191,641                             192,296  
                                                                                              -------------------- ---------- --------------------                      -------------------- ---------- --------------------
        Total liabilities                                                                        9,733,179                           9,801,072  
                                                                                              -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                                                                                                                                                                         
Commitments and contingencies
                                                                                                                                                                                                         
Redeemable Noncontrolling Interests - Operating Partnership                           359,733                             442,092  
                                                                                              -------------------- ---------- --------------------                      -------------------- ---------- --------------------
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 March 31, 2017 and December 31, 2016
     Common Shares of beneficial interest, $0.01 par value;                                                             3,671                                                                     3,659
     1,000,000,000 shares authorized; 367,137,757 shares issued
     and outstanding as of March 31, 2017 and 365,870,924 shares
     issued and outstanding as of December 31, 2016
     Paid in capital                                                                                                8,846,997                                                                 8,758,422
     Retained earnings                                                                                              1,501,654                                                                 1,543,626
     Accumulated other comprehensive (loss)                                                       (109,326 )                                             (113,909 )
                                                                                              -------------------- ---------- --------------------                      -------------------- ---------- --------------------
        Total shareholders’ equity                                                      10,280,276                                                                10,229,078
  Noncontrolling Interests:
     Operating Partnership                                                                                            228,762                                                                   221,297
     Partially Owned Properties                                                                      6,388                              10,609  
                                                                                              -------------------- ---------- --------------------                      -------------------- ---------- --------------------
        Total Noncontrolling Interests                                                             235,150                             231,906  
                                                                                              -------------------- ---------- --------------------                      -------------------- ---------- --------------------
        Total equity                                                                            10,515,426                          10,460,984  
                                                                                              -------------------- ---------- --------------------                      -------------------- ---------- --------------------
        Total liabilities and equity                                                                             $ 20,608,338                                           $ 20,704,148  
                                                                                              ==================== ========== ====================                      ==================== ========== ====================
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                         Equity Residential
                                                                                                                                                          Portfolio Summary
                                                                                                                                                        As of March 31, 2017
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                       % of                                                         Average
                                                                                                                                                Apartment                                                                Stabilized                                                                         Rental
             Markets/Metro Areas                                         Properties                                            Units                                                   NOI                                                          Rate
-------------------------------------------                      -----------------------------------------------                      ------------------------------------------------                      --------------------------------------------------------                      ------------------------------------------
                                                                                                                                                                                                             
Los Angeles                                                                              70                                                                15,857                                                                          18.3 %                                                            $                2,396
Orange County                                                                            13                                                                 4,028                                                                           4.3 %                                                                             2,068
San Diego                                                             13                           3,505                                     3.9 %                                                          2,220
                                                                 -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------                      -------------------- --------------------
Subtotal - Southern California                                              96                                                                23,390                                                                          26.5 %                                                                             2,310
                                                                                                                                                                                                                                                                                                                
San Francisco                                                                            54                                                                12,959                                                                          19.6 %                                                                             3,047
New York                                                                                 40                                                                10,632                                                                          17.9 %                                                                             3,734
Washington DC                                                                            47                                                                15,637                                                                          17.6 %                                                                             2,343
Boston                                                                                   25                                                                 6,703                                                                          10.4 %                                                                             2,850
Seattle                                                                                  37                                                                 7,096                                                                           8.0 %                                                                             2,172
Other Markets                                                          1                             136                          -- %                                                          1,141
                                                                 -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------                      -------------------- --------------------
Total                                                                                   300                                                                76,553                                                                         100.0 %                                                                             2,675
                                                                                                                                                                                                                                                                                                                
Unconsolidated Properties                                              2                             945                          --                                --
                                                                 -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                
Grand Total                                                          302                          77,498                                   100.0 %                                                            $                2,675
                                                                 ==================== ===== ====================                      ==================== ====== ====================                      ==================== ============== ====================                      ==================== ====================
                                                                                                                                                                                                                                                                                                                

Note: Projects under development are not included in the Portfolio Summary until construction has been completed.

 
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                        Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                  Portfolio as of March 31, 2017
 
                                                                 Properties                                  Apartment Units
                                                                    --------------------------------------------------------------                      ------------------------------------------
                                                                                                                   
   Wholly Owned Properties                                                                                280                                                                              72,485
   Master-Leased Properties - Consolidated                                                                  3                                                                                 853
   Partially Owned Properties - Consolidated                                                               17                                                                               3,215
   Partially Owned Properties - Unconsolidated                                           2                                           945
                                                                    -------------------- -------------------- --------------------                      -------------------- --------------------
                                                                                                                                                                              
                                                                                       302                                        77,498
                                                                    ==================== ==================== ====================                      ==================== ====================
                                         
---------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
 
                                                                                                                                                                 Portfolio Rollforward Q1 2017
                                                                                                                                                                       ($ in thousands)
 
                                                                                                                              Apartment                                                                                           Disposition
                                                                                                        Properties                                                    Units                                        Sales Price                                             Yield
                                                                                           --------------------------------------------------------                      --------------------------------------------------------                      ----------------------------------                      -----------------------------------------------
                                                           12/31/2016                                   302                                                     77,458                                                                                                    
                                                                                                                                                                                                                                                                                                                                          
Dispositions:
  Consolidated:
     Rental Properties                                                                                                      (1 )                                                                        (304 )                                             $ (47,600 )                                                              (6.7 %)
     Land Parcels                                                                                               --                                                                --                                               $ (33,450 )
Completed Developments - Consolidated                                                                     1                                     344  
                                                                                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                          
                                                            3/31/2017                                   302                                  77,498  
                                                                                           ==================== ============== ====================                      ==================== ============== ====================
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                                     First Quarter 2017 vs. First Quarter 2016
                                                                                                                                                                                                                                     Same Store Results/Statistics for 71,000 Same Store Apartment
                                                                                                                                                                                                                                     Units
                                                                                                                                                                                                                                     $ in thousands (except for Average Rental Rate)
 
                                                                                                                             Results                                                                                                                                                                                                                       Statistics
                                          --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Description                                           Revenues                                      Expenses                                         NOI                                                            Average                                      Physical                                                Turnover
                                                                                                                                                                                                                                                                                                                        Rental                                                                             Occupancy
                                                                                                                                                                                                                                                                                                                         Rate
--------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                            
       Q1 2017                                               $              560,236                                                              $              167,316                                                              $              392,920                                                              $                2,633                                                                                95.9 %                                                                              10.4 %
       Q1 2016                                               $              545,846                                           $              161,004                                           $              384,842                                           $                2,566                                          95.9 %                                                           10.9 %
                                          -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
       Change                                                $               14,390                                           $                6,312                                           $                8,078                                           $                   67                                --                                          (0.5 )%
                                          ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
       Change                                                                   2.6 %                                                                               3.9 %                                                                               2.1 %                                                                               2.6 %
                                                 
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
 
                                                                                                                                                                First Quarter 2017 vs. Fourth Quarter 2016
                                                                                                                                                       Same Store Results/Statistics for 73,412 Same Store Apartment
                                                                                                                                                                                   Units
                                                                                                                                                              $ in thousands (except for Average Rental Rate)
 
                                                                                  Results                                                                                                                                                   Statistics
                                 ----------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                Average                                                                        
                                                                                                                                                                                                      Rental                                                     Physical
 Description                       Revenues                            Expenses                                         NOI                                      Rate                                   Occupancy                                                  Turnover
-----------                      ---------------------------------                      ---------------------------------                      --------------------------------                     ------------------------------                      ----------------------------------------------                      -----------------------------------------------
                                                                                                                                                                                                                                                                                                          
   Q1 2017                          $ 583,583                                              $ 175,798                                            $ 407,785                                             $ 2,655                                                                95.8 %                                                              10.5 %
   Q4 2016                          $ 583,240                           $ 166,619                         $ 416,621                          $ 2,650                          95.9 %                                           11.2 %
                                 ---- ------- --------------------                      ---- ------- --------------------                      -- ------- --------------------                      --- ----- --------------------                      -------------------- ---- --------------------                      -------------------- ---- --------------------
                                                                                                                                                                                                                                                                                                                                                       
   Change                           $     343                           $   9,179                         $  (8,836 )                                           $     5                          (0.1 %)                                          (0.7 %)
                                 ==== ======= ====================                      ==== ======= ====================                      == ======= ====================                      === ===== ====================                      ==================== ==== ====================                      ==================== ==== ====================
                                                                                                                                                                                                                                                                                                                                                       
   Change                                 0.1 %                                                  5.5 %                                               (2.1 )%                                              0.2 %
                                                                                                                                                                                                                                                                                                                                                       

Note: Same store revenues for all leases are reflected on a straight-line basis in accordance with GAAP for the current and comparable periods. See page 26 for reconciliations from operating income.

 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     First Quarter 2017 vs. First Quarter 2016
                                                                                                                                                                                                                                     Same Store Results/Statistics by Market
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Increase (Decrease) from Prior Year’s Quarter                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                               Q1 2017                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                       Q1 2017                                                                             Q1 2017                                                                            Weighted
                                                                                                                                                                        % of                                                                               Average                                                                             Average                                                                                                                                                                                                                                                                                                                                                                                                                             Average
                                                                                  Apartment                                                                            Actual                                                                              Rental                                                                             Physical                                                                             Q1 2017                                                                                                                                                                                                                                                                                                                                         Rental                                                                             Physical
             Markets/Metro Areas                                                    Units                                                             NOI                                                             Rate                                                          Occupancy %                                                       Turnover                                                         Revenues                                                         Expenses                                                            NOI                                                             Rate                                                           Occupancy                                                        Turnover                  
-------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Los Angeles                                                                                         14,038                                                                                17.5 %                                                            $                2,380                                                                                95.8 %                                                                              11.7 %                                                                               3.8 %                                                                               5.0 %                                                                               3.3 %                                                                               4.3 %                                                                              (0.3 %)                                                                              0.0 %
San Diego                                                                                            3,505                                                                                 4.2 %                                                                             2,220                                                                                96.0 %                                                                              14.6 %                                                                               5.1 %                                                                               3.9 %                                                                               5.5 %                                                                               4.8 %                                                                               0.2 %                                                                               0.6 %
Orange County                                                                     3,684                                           4.1 %                                                          2,033                                          96.1 %                                                           10.5 %                                                            5.5 %                                                            6.4 %                                                            5.2 %                                                            5.0 %                                                            0.4 %                                                           (0.1 %)
                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Subtotal - Southern California                                                         21,227                                                                                25.8 %                                                                             2,293                                                                                95.9 %                                                                              11.9 %                                                                               4.3 %                                                                               5.0 %                                                                               4.0 %                                                                               4.4 %                                                                               0.0 %                                                                               0.0 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Washington DC                                                                                       15,475                                                                                18.9 %                                                                             2,343                                                                                95.9 %                                                                               9.2 %                                                                               2.1 %                                                                               2.8 %                                                                               1.8 %                                                                               1.9 %                                                                               0.1 %                                                                              (0.3 %)
New York                                                                                            10,007                                                                                18.1 %                                                                             3,668                                                                                95.9 %                                                                               8.7 %                                                                               0.3 %                                                                               5.7 %                                                                              (2.7 %)                                                                              0.3 %                                                                              (0.3 %)                                                                              0.0 %
San Francisco                                                                                       11,019                                                                                18.1 %                                                                             2,916                                                                                96.0 %                                                                              10.7 %                                                                               2.9 %                                                                               1.5 %                                                                               3.4 %                                                                               3.2 %                                                                              (0.4 %)                                                                             (1.4 %)
Boston                                                                                               6,609                                                                                11.0 %                                                                             2,850                                                                                95.9 %                                                                               8.7 %                                                                               1.4 %                                                                               0.9 %                                                                               1.6 %                                                                               1.3 %                                                                               1.1 %                                                                              (2.6 %)
Seattle                                                                                              6,527                                                                                 8.0 %                                                                             2,175                                                                                95.9 %                                                                              12.6 %                                                                               6.4 %                                                                               5.9 %                                                                               6.7 %                                                                               5.7 %                                                                               0.5 %                                                                               0.3 %
Other Markets                                                                                          136                                                                                 0.1 %                                                                             1,141                                                                                99.3 %                                                                               5.1 %                                                                               6.3 %                                                                              29.5 %                                                                              (6.1 %)                                                                              5.9 %                                                                               0.4 %                                                                              (3.7 %)
                                                                                                                                                                                                                                                                                                                                                    
                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Total                                                                            71,000                                         100.0 %                                                            $                2,633                                          95.9 %                                                           10.4 %                                                            2.6 %                                                            3.9 %                                                            2.1 %                                                            2.6 %                                                            0.0 %                                                           (0.5 %)
                                                                 ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     First Quarter 2017 vs. Fourth Quarter 2016
                                                                                                                                                                                                                                     Same Store Results/Statistics by Market
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Increase (Decrease) from Prior Quarter                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                               Q1 2017                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                       Q1 2017                                                                             Q1 2017                                                                            Weighted
                                                                                                                                                                        % of                                                                               Average                                                                             Average                                                                                                                                                                                                                                                                                                                                                                                                                             Average
                                                                                  Apartment                                                                            Actual                                                                              Rental                                                                             Physical                                                                             Q1 2017                                                                                                                                                                                                                                                                                                                                         Rental                                                                             Physical
             Markets/Metro Areas                                                    Units                                                             NOI                                                             Rate                                                          Occupancy %                                                       Turnover                                                         Revenues                                                         Expenses                                                            NOI                                                             Rate                                                           Occupancy                                                        Turnover                  
-------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Los Angeles                                                                                         14,430                                                                                17.3 %                                                            $                2,379                                                                                95.7 %                                                                              11.8 %                                                                               0.2 %                                                                               3.7 %                                                                              (1.2 %)                                                                              0.6 %                                                                              (0.2 %)                                                                             (1.7 %)
San Diego                                                                                            3,505                                                                                 4.0 %                                                                             2,220                                                                                96.0 %                                                                              14.6 %                                                                               1.0 %                                                                               5.1 %                                                                              (0.4 %)                                                                              1.1 %                                                                               0.0 %                                                                               0.3 %
Orange County                                                                     3,684                                           4.0 %                                                          2,033                                          96.1 %                                                           10.5 %                                                            0.3 %                                                            7.9 %                                                           (2.0 %)                                                           0.4 %                                                           (0.1 %)                                                          (1.2 %)
                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Subtotal - Southern California                                                         21,619                                                                                25.3 %                                                                             2,294                                                                                95.9 %                                                                              12.0 %                                                                               0.4 %                                                                               4.5 %                                                                              (1.2 %)                                                                              0.7 %                                                                              (0.1 %)                                                                             (1.3 %)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
San Francisco                                                                                       11,846                                                                                18.9 %                                                                             2,954                                                                                95.7 %                                                                              11.1 %                                                                               0.0 %                                                                               4.0 %                                                                              (1.2 %)                                                                              0.3 %                                                                              (0.3 %)                                                                             (0.1 %)
New York                                                                                            10,632                                                                                18.6 %                                                                             3,734                                                                                95.9 %                                                                               8.6 %                                                                               0.0 %                                                                               7.9 %                                                                              (4.4 %)                                                                              0.0 %                                                                              (0.2 %)                                                                              0.1 %
Washington DC                                                                                       15,475                                                                                18.2 %                                                                             2,343                                                                                95.9 %                                                                               9.2 %                                                                               0.0 %                                                                               4.4 %                                                                              (1.8 %)                                                                              0.1 %                                                                              (0.1 %)                                                                             (1.1 %)
Boston                                                                                               6,609                                                                                10.6 %                                                                             2,850                                                                                95.9 %                                                                               8.7 %                                                                              (0.8 %)                                                                              3.0 %                                                                              (2.2 %)                                                                             (0.8 %)                                                                              0.2 %                                                                              (1.5 %)
Seattle                                                                                              7,095                                                                                 8.3 %                                                                             2,172                                                                                95.8 %                                                                              12.8 %                                                                               0.8 %                                                                               8.9 %                                                                              (2.0 %)                                                                              0.8 %                                                                               0.2 %                                                                               1.1 %
Other Markets                                                                                          136                                                                                 0.1 %                                                                             1,141                                                                                99.3 %                                                                               5.1 %                                                                               1.8 %                                                                              41.0 %                                                                             (15.4 %)                                                                             (0.4 %)                                                                              2.4 %                                                                              (9.6 %)
                                                                                                                                                                                                                                                                                                                                                    
                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Total                                                                            73,412                                         100.0 %                                                            $                2,655                                          95.8 %                                                           10.5 %                                                            0.1 %                                                            5.5 %                                                           (2.1 %)                                                           0.2 %                                                           (0.1 %)                                                          (0.7 %)
                                                                 ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                       Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                            First Quarter 2017 vs. First Quarter 2016
                                                                                                                                                                  Same Store Operating Expenses for 71,000 Same Store Apartment
                                                                                                                                                                                              Units
                                                                                                                                                                                         $ in thousands
 
                                                                                                                                                                                                                    % of Actual
                                                                                                                                                                                                                                                                                                                                                           Q1 2017
                                                                     Actual                                                                 Actual                                                                   $                                                                    %                                                               Operating
                                                                     Q1 2017                                             Q1 2016                                            Change                                            Change                                          Expenses           
                                                          -------------------------------------------------                      -------------------------------------------------                      -----------------------------------------------                      ----------------------------------------------                      -----------------------------------------------
                                                                                                                                                                                                                                                                                                                               
Real estate taxes                                                            $  70,364                                                              $  67,553                                                              $ 2,811                                                                 4.2 %                                                               42.1 %
On-site payroll (1)                                                             37,406                                                                 35,774                                                                1,632                                                                 4.6 %                                                               22.4 %
Utilities (2)                                                                   23,728                                                                 23,312                                                                  416                                                                 1.8 %                                                               14.2 %
Repairs and maintenance (3)                                                     20,324                                                                 19,042                                                                1,282                                                                 6.7 %                                                               12.1 %
Insurance                                                                        4,202                                                                  4,370                                                                 (168 )                                                              (3.8 %)                                                               2.5 %
Leasing and advertising                                                          2,407                                                                  2,150                                                                  257                                                                12.0 %                                                                1.4 %
Other on-site operating expenses (4)                          8,885                            8,803                             82                           0.9 %                                             5.3 %
                                                          -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ----- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------
                                                                                                                                                                                                                                                                                                                                                                             
Same store operating expenses                                                $ 167,316                                           $ 161,004                                           $ 6,312                           3.9 %                                           100.0 %
                                                          ==================== ======= ====================                      ==================== ======= ====================                      ==================== ===== ====================                      ==================== ==== ====================                      ==================== ===== ====================
                                                                                                                                                                                                                                                                                                                                                                             
(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 March 31, 2017
                                                                                                                                                                         ($ in thousands)
 
                                                                                                                                                                                                                                          Weighted
                                                                                                                                                                                                                                                        Weighted                                                                          Average
                                                                                                                                                                                                                                                         Average                                                                        Maturities
                                                                                           Amounts (1)                                                % of Total                                                  Rates (1)                                                      (years)
                                                                              --------------------------------------------------------                      --------------------------------------------------------                      --------------------------------------------------------                      ------------------------------------------
                                                                                                                                                                                                                                                                                   
Secured                                                                                          $      3,766,762                                                                          42.2 %                                                                        4.43 %                                                                               5.9
Unsecured                                                                            5,163,163                                    57.8 %                                                     4.37 %                                                            9.2
                                                                              -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                              
     Total                                                                                       $      8,929,925                                   100.0 %                                                     4.40 %                                                            7.8
                                                                              ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ====================
Fixed Rate Debt:
  Secured - Conventional                                                            $      3,130,010                                                                          35.0 %                                                                        5.02 %                                                                               4.7
  Unsecured - Public                                                    4,399,172                                    49.3 %                                                     4.80 %                                                           10.6
                                                                              -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                              
     Fixed Rate Debt                                                                 7,529,182                                    84.3 %                                                     4.89 %                                                            8.1
                                                                              -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                              
Floating Rate Debt:
  Secured - Conventional                                                                       7,044                                                                           0.1 %                                                                        0.75 %                                                                              16.6
  Secured - Tax Exempt                                                                       629,708                                                                           7.1 %                                                                        1.33 %                                                                              11.5
  Unsecured - Public (2)                                                                     449,305                                                                           5.0 %                                                                        1.62 %                                                                               2.2
  Unsecured - Revolving Credit Facility (3)                                           --                                                                --                                                                --                                                                                 4.8
  Unsecured - Commercial Paper Program (4)                                314,686                                     3.5 %                                                     1.09 %                                                 --
                                                                              -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                              
     Floating Rate Debt                                                              1,400,743                                    15.7 %                                                     1.39 %                                                            6.2
                                                                              -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                              
Total                                                                                            $      8,929,925                                   100.0 %                                                     4.40 %                                                            7.8
                                                                              ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ====================
                                                                                                                                                                                                                                                                                                                                              
(1)   Net of the effect of any derivative instruments. Weighted average
                         rates are for the quarter ended March 31, 2017.
                          
(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)                      The Company’s $2.0 billion unsecured revolving credit facility
                         matures January 10, 2022. The interest rate on advances under the
                         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 March 31, 2017, there
                         was approximately $1.66 billion available on the Company’s unsecured
                         revolving credit facility (net of $20.7 million which was
                         restricted/dedicated to support letters of credit and net of $315.0
                         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
                         1.09% for the quarter ended March 31, 2017 and a weighted average
                         maturity of 26 days as of March 31, 2017.

Note: The Company capitalized interest of approximately $8.2 million and $14.2 million during the quarters ended March 31, 2017 and 2016, respectively.

 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                               Debt Maturity Schedule as of March 31, 2017
                                                                                                                                                                                                                                     ($ in thousands)
 
                                                                                                                                                                                                                                                                                            Weighted                                           Weighted
                                                                                                                                                                                                                                                                                                                                                                                         Average Rates                                                            Average
                                                                                      Fixed                                                                      Floating                                                                                                                                              % of                                                                on Fixed                                                              Rates on
                        Year                                                        Rate (1)                                                  Rate (1)                                                    Total                                               Total                                          Rate Debt (1)                                     Total Debt (1)         
---------------------------------------------------                      ---------------------------------------------------                          ---------------------------------------------------                          ---------------------------------------------------                      -----------------------------------------------                      ------------------------------------------------                      -------------------------------------------------
                        2017                                                                $   593,622                                                                  $   318,300                      (2)                                         $   911,922                                              10.1 %                                             6.20 %                                              4.49 %
                        2018                                                                     83,056                                                                      100,735                                                                      183,791                                                                  2.0 %                                                                5.58 %                                                                 3.33 %
                        2019                                                                    507,071                      (3)                                             477,251                                                                      984,322                                                                 10.9 %                                                                5.17 %                                                                 3.42 %
                        2020                                                                  1,678,950                      (4)                                              10,500                                                                    1,689,450                                                                 18.7 %                                                                5.49 %                                                                 5.46 %
                        2021                                                                    927,882                                                                       12,600                                                                      940,482                                                                 10.4 %                                                                4.64 %                                                                 4.59 %
                        2022                                                                    265,737                                                                       13,800                                                                      279,537                                                                  3.1 %                                                                3.26 %                                                                 3.15 %
                        2023                                                                  1,327,218                                                                       15,300                                                                    1,342,518                                                                 14.9 %                                                                3.74 %                                                                 3.71 %
                        2024                                                                      1,711                                                                       17,100                                                                       18,811                                                                  0.2 %                                                                4.89 %                                                                 1.25 %
                        2025                                                                    451,797                                                                       19,600                                                                      471,397                                                                  5.2 %                                                                3.38 %                                                                 3.28 %
                        2026                                                                    593,912                                                                       21,700                                                                      615,612                                                                  6.8 %                                                                3.59 %                                                                 3.49 %
                        2027+                                              1,141,276                                457,665                              1,598,941                           17.7 %                                             4.52 %                                              3.48 %
                                                                         -------------------- --------- --------------------                          -------------------- --------- --------------------                          -------------------- --------- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ------- --------------------
                      Subtotal                                                                7,572,232                                                                    1,464,551                                                                    9,036,783                                                                100.0 %                                                                4.59 %                                                                 4.07 %
 Deferred Financing Costs and Unamortized (Discount)                         (43,050 )                                                 (63,808 )                                                (106,858 )                                                                N/A                                                N/A                                                 N/A  
                                                                         -------------------- --------- --------------------                          -------------------- --------- --------------------                          -------------------- --------- --------------------                      -----------------------------------------------                      ------------------------------------------------                      -------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                        Total                                                               $ 7,529,182                                               $ 1,400,743                                               $ 8,929,925                          100.0 %                                             4.59 %                                              4.07 %
                                                                         ==================== ========= ====================                          ==================== ========= ====================                          ==================== ========= ====================                      ==================== ===== ====================                      ==================== ====== ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
(1)   Net of the effect of any derivative instruments. Weighted average
                         rates are as of March 31, 2017.
                          
(2)                      Includes $315.0 million in principal outstanding on the Company’s
                         commercial paper program. The Company may borrow up to a maximum of
                         $500.0 million on the program subject to market conditions.
                          
(3)                      Includes a $500.0 million 5.19% mortgage loan with a maturity date
                         of October 1, 2019 that can be prepaid at par beginning October 1,
                         2018.
                          
(4)                      Includes a $550.0 million 6.08% mortgage loan with a maturity date
                         of March 1, 2020 that can be prepaid at par beginning March 1, 2019.
                         Also includes a $500.0 million 5.78% mortgage loan with a maturity
                         date of July 1, 2020 that can be prepaid at par beginning July 1,
                         2019.
 
--------------------------------------------------------------------------------------------------------------------------------------
                                                          Equity Residential
--------------------------------------------------------------------------------------------------------------------------------------
 
                                               Selected Unsecured Public Debt Covenants
 
                                                                March 31,      December 31,
                                                                                     2017                                2016
                                                                                  ---------                      --------------------
   Total Debt to Adjusted Total Assets (not to exceed 60%)                           35.1%                               35.4%
                                                                                                                  
   Secured Debt to Adjusted Total Assets (not to exceed 40%)                         14.8%                               16.2%
                                                                                                                  
   Consolidated Income Available for Debt Service to
     Maximum Annual Service Charges
     (must be at least 1.5 to 1)                                                       3.96                                      3.73
                                                                                                                  
   Total Unsecured Assets to Unsecured Debt
    (must be at least 150%)                                                          377.6%                                    390.8%
                                                                                                                  

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
 
                                           March 31,      December 31,
                                                                2017                                2016
                                                             ---------                      --------------------
   Total debt to Normalized EBITDA                              5.73x                               5.74x
                                                                                             
   Net debt to Normalized EBITDA                                5.66x                               5.65x
                                                                                             
   Unencumbered NOI as a % of total NOI                         72.8%                               71.1%
                                                                                             

Note: See page 21 for the Normalized EBITDA reconciliations.

 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                   Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                         Capital Structure as of March 31, 2017
                                                                                                                                                                                                           (Amounts in thousands except for share/unit and per share amounts)
 
     Secured Debt                                                                                                                                                    $            3,766,762                       42.2 %                       
     Unsecured Debt                                                                                                                                                                                                                                           5,163,163                                          57.8 %
                                                                                                                                                                                                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
   Total Debt                                                                                                                                                                                                                                                                    8,929,925                                                                               100.0 %                                                                              27.3 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
     Common Shares (includes Restricted Shares)                                                        367,137,757                                                                                96.4 %
     Units (includes OP Units and Restricted Units)                                  13,827,472                                           3.6 %
                                                                         -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
   Total Shares and Units                                                                              380,965,229                                                                               100.0 %
   Common Share Price at March 31, 2017                                                     $                62.22  
                                                                         -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                23,703,657                                                                                99.8 %
   Perpetual Preferred Equity (see below)                                                                                                                                                                                                                        37,280                                           0.2 %
                                                                                                                                                                                                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
   Total Equity                                                                                                                                                                                                                                                                 23,740,937                                                                               100.0 %                                                                              72.7 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
   Total Market Capitalization                                                                                                                                                                                                                                      $           32,670,862                                                                                                                                                                   100.0 %
                                                                        
--------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
 
                                                                                                                            Perpetual Preferred Equity as of March 31, 2017
                                                                                                                     (Amounts in thousands except for share and per share amounts)
 
                                                                                                       Annual                 Annual
                                                         Redemption                               Outstanding                                                    Liquidation                                            Dividend                                                     Dividend
               Series                                       Date                                    Shares                                       Value                            Per Share                                  Amount
-----------------------------------                      ----------                      -------------------------------------------------                      ---------------------------------                      -------------------------------                      --------------------------
   Preferred Shares:                                                                      
     8.29% Series K                                       12/10/26                         745,600                            $ 37,280                           $ 4.145                                              $                3,091
                                                                                         -------------------- ------- --------------------                      ----- ------ --------------------                                                                           ---- --------------------
                                                                                                                                                                                                                                                                                  
   Total Perpetual Preferred Equity                                                                           745,600                                               $ 37,280                                                                                                   $                3,091
 
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             Equity Residential
                                                                                            Common Share and Unit
                                                                                    Weighted Average Amounts Outstanding
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                  Q1 2017                                   Q1 2016
                                                                                        -----------------------------------------------------                      ------------------------------------------
                                                                                                                              
   Weighted Average Amounts Outstanding for Net Income Purposes:
     Common Shares - basic                                                                                   366,605,450                                                                         364,592,279
     Shares issuable from assumed conversion/vesting of:
                - OP Units                                                                                    12,898,618                                                                          13,696,822
                - long-term compensation shares/units                                       2,775,943                                     3,953,965
                                                                                        -------------------- ----------- --------------------                      -------------------- --------------------
                                                                                                                                                                                         
     Total Common Shares and Units - diluted                                              382,280,011                                   382,243,066
                                                                                        ==================== =========== ====================                      ==================== ====================
                                                                                                                                                                                         
   Weighted Average Amounts Outstanding for FFO and Normalized FFO
   Purposes:
     Common Shares - basic                                                                                   366,605,450                                                                         364,592,279
     OP Units - basic                                                                      12,898,618                                    13,696,822
                                                                                        -------------------- ----------- --------------------                      -------------------- --------------------
                                                                                                                                                                                         
     Total Common Shares and OP Units - basic                                                                379,504,068                                                                         378,289,101
     Shares issuable from assumed conversion/vesting of:
                - long-term compensation shares/units                                       2,775,943                                     3,953,965
                                                                                        -------------------- ----------- --------------------                      -------------------- --------------------
                                                                                                                                                                                         
     Total Common Shares and Units - diluted                                              382,280,011                                   382,243,066
                                                                                        ==================== =========== ====================                      ==================== ====================
                                                                                                                                                                                         
   Period Ending Amounts Outstanding:
     Common Shares (includes Restricted Shares)                                                              367,137,757                                                                         365,496,019
     Units (includes OP Units and Restricted Units)                                        13,827,472                                    14,703,617
                                                                                        -------------------- ----------- --------------------                      -------------------- --------------------
                                                                                                                                                                                         
     Total Shares and Units                                                               380,965,229                                   380,199,636
                                                                                        ==================== =========== ====================                      ==================== ====================
 
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                 Equity Residential
                                                                                    Partially Owned Entities as of March 31, 2017
                                                                            (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 quarter ended 3/31/17 (at 100%):
  Operating revenue                                                                                    $  23,028                                                              $          7,987
  Operating expenses                                                                    5,676                                   2,941  
                                                                                    -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                
  Net operating income                                                                                    17,352                                                                         5,046
  Property management                                                                                        813                                                                           213
  General and administrative/other                                                                            16                                                                            25
  Depreciation                                                                          5,201                                   4,020  
                                                                                    -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                
  Operating income                                                                                        11,322                                                                           788
  Interest and other income                                                                                   13                                                                --
  Interest:
     Expense incurred, net                                                                                (3,312 )                                                                      (2,072 )
     Amortization of deferred financing costs                                             (68 )                                           --  
                                                                                    -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                
  Income (loss) before income and other taxes and (loss)
    from investments in unconsolidated entities                                                            7,955                                                                        (1,284                    )
  Income and other tax (expense) benefit                                                                     (34 )                                                                         (12 )
  (Loss) from investments in unconsolidated entities                                     (411 )                                           --  
                                                                                    -------------------- ------- --------------------                      -------------------- -------------- --------------------
  Net income (loss)                                                                                    $   7,510                                           $         (1,296 )
                                                                                    ==================== ======= ====================                      ==================== ============== ====================
                                                                                                                                                                                                
Debt - Secured (1):
     EQR Ownership (2)                                                                                 $ 236,590                                                              $         29,085
     Noncontrolling Ownership                                                          64,829                                 116,339  
                                                                                    -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                
Total (at 100%)                                                                                        $ 301,419                                           $        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 March 31, 2017
                                                                                                                                                                                                                                     (Amounts in thousands except for project and apartment unit
                                                                                                                                                                                                                                     amounts)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                                     Total Book                                                                                                                                                                                                                                                          
                                                                                                                                   No. of                                                                               Total                                                                               Total                                                                             Value Not                                                                                                                                                                                                                                                                                                                                                                                    Estimated                            Estimated
                                                                                                                                  Apartment                                                                            Capital                                                                           Book Value                                                                           Placed in                                                                             Total                                                                      Percentage                                                                  Percentage                                                                    Percentage                                                       Completion                          Stabilization
Projects                                                                       Location                                             Units                                                            Cost                                                            to Date                                                          Service                                                           Debt                                                     Completed                                                 Leased                                                    Occupied                                        Date                                 Date
----------------------------------------------------                      -----------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      ---------------------------------------------------                      --------------------------------------------------------                      --------------------------------------------------------                      ----------                      --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Projects Under Development:
----------------------------------------------------
455 Eye Street                                                            Washington, DC                                                               174                                                              $               73,157                                                              $               64,636                                                              $               64,636                                                              $       --                                                                       83 %                                                                           2 %                                                              --                                             Q3 2017                              Q2 2018
855 Brannan (formerly 801 Brannan)                                        San Francisco, CA                                                            449                                                                             304,035                                                                             236,310                                                                             236,310                                                                      --                                                                       75 %                                                                           1 %                                                              --                                             Q3 2017                              Q1 2019
Helios (formerly 2nd & Pine)                                              Seattle, WA                                                                  398                                                                             215,787                                                                             197,906                                                                             197,906                                                                      --                                                                       90 %                                                              --                                                                --                                             Q3 2017                              Q2 2019
Cascade                                                                   Seattle, WA                                                                  477                                                                             176,378                                                                             138,710                                                                             138,710                                                                      --                                                                       79 %                                                                           2 %                                                              --                                             Q3 2017                              Q2 2019
100 K Street                                                              Washington, DC                                                               222                                                                              88,023                                                                              28,666                                                                              28,666                                                                      --                                                                       11 %                                                              --                                                                --                                             Q4 2018                              Q4 2019
                                                                                                                                                                                                                                  
                                                                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Projects Under Development                                                                                                        1,720                                       857,380                                       666,228                                       666,228                                --  
                                                                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Completed Not Stabilized (1):
----------------------------------------------------
340 Fremont (formerly Rincon Hill)                                        San Francisco, CA                                                            348                                                                             292,054                                                                             289,644                                                                      --                                                                      --                                                                                                                                                     94 %                                                                          90 %                                          Completed                             Q2 2017
One Henry Adams                                                           San Francisco, CA                                                            241                                                                             172,337                                                                             166,244                                                                      --                                                                      --                                                                                                                                                     50 %                                                                          44 %                                          Completed                             Q4 2017
Altitude (formerly Village at Howard Hughes)                              Los Angeles, CA                                                              545                                                                             193,231                                                                             191,955                                                                      --                                                                      --                                                                                                                                                     65 %                                                                          63 %                                          Completed                             Q1 2018
The Alton (formerly Millikan)                                             Irvine, CA                                                                   344                                                                             108,681                                                                             105,027                                                                      --                                                                      --                                                                                                                                                     48 %                                                                          43 %                                          Completed                             Q1 2018
                                                                                                                                                                                                                                  
                                                                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Projects Completed Not Stabilized                                                                                                 1,478                                       766,303                                       752,870                                --                                --  
                                                                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Completed and Stabilized During the
Quarter:
----------------------------------------------------
Potrero 1010                                                              San Francisco, CA                                                            453                                                                             223,009                                                                             222,720                                                                      --                                                                      --                                                                                                                                                     97 %                                                                          96 %                                          Completed                           Stabilized
                                                                                                                                                                                                                                  
                                                                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Projects Completed and Stabilized During the Quarter                                                                                453                                       223,009                                       222,720                                --                                --  
                                                                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Total Development Projects                                                                                                        3,651                                           $            1,846,692                                           $            1,641,818                                           $              666,228                                           $       --  
                                                                                                                 ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Land Held for Development                                                                                                                              N/A                                                              N/A                                           $              109,136                                           $              109,136                                           $       --  
                                                                                                                 ==============================================================                      ==============================================================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Total Capital                                               Q1 2017               
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Cost                                                                         NOI
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     -----------------------------  --------------------                      ----------------------------------  --------------------
Projects Under Development                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              $   857,380                                                              $            (89 )
Completed Not Stabilized                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    766,303                                                                         5,739
Completed and Stabilized During the Quarter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              223,009                                   4,032  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     -------------------- --------- --------------------                      -------------------- -------------- --------------------
  Total Development NOI Contribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    $ 1,846,692                                           $          9,682  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     ==================== ========= ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

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 Quarter Ended March 31, 2017
                                                                                                                                                                                                                                     (Amounts in thousands except for apartment unit and per apartment
                                                                                                                                                                                                                                     unit amounts)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                       Repairs and Maintenance Expenses                                                                                                                                                                                                                                                                                                       Capital Expenditures to Real Estate                                                                                                                                                                                               Total Expenditures
                                                                                                                                 --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                      --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                          ------------------------------------------------------------------------------------------------
                                                                   Total                                               Expense (2)             Avg. Per              Payroll (3)             Avg. Per                 Total                Avg. Per                                Replacements             Avg. Per               Building               Avg. Per                 Total                Avg. Per                                        Grand                        Avg. Per
                                                                 Apartment                                                                                                                              Apartment                                                                                                                 Apartment                                                                                                                 Apartment                                                       (4)                                                       Apartment                                                  Improvements                                                   Apartment                                                                                                                 Apartment                                                          Total                                                              Apartment
                                                                 Units (1)                                                                                                                                Unit                                                                                                                      Unit                                                                                                                      Unit                                                                                                                      Unit                                                          (5)                                                         Unit                                                                                                                      Unit                                                                                                                                  Unit
                                                   ----------------------------------  --------------------                      --------------------------  --------------------                      --------  --------------------                      --------------------------  --------------------                      --------  --------------------                      --------------------------  --------------------                      --------  --------------------                      --------------------------  --------------------                      --------  --------------------                      --------------------------  --------------------                      --------  --------------------                      --------------------------  --------------------                      --------  --------------------                          --------------------------  --------------------                      ------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Same Store Properties                                                           71,000                                                              $ 20,324                                              $  286                                                              $ 17,175                                              $  242                                                              $ 37,499                                              $  528                                                              $ 18,299                                              $  258                                                              $ 19,284                                              $  271                                                              $ 37,583                                              $  529                      (8)                                         $ 75,082                                              $                1,057
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Non-Same Store Properties (6)                                                    5,553                                                                 1,290                                                 248                                                                 1,049                                                 201                                                                 2,339                                                 449                                                                   699                                                 134                                                                   862                                                 165                                                                 1,561                                                 299                                                                     3,900                                                                 748
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Other (7)                                            --                             135                                                                                 211                                                                                 346                                                                                  21                                                                                 132                                                                                 153                                                                                     499  
                                                   -------------------- -------------- --------------------                      -------------------- ------ --------------------                                                                          -------------------- ------ --------------------                                                                          -------------------- ------ --------------------                                                                          -------------------- ------ --------------------                                                                          -------------------- ------ --------------------                                                                          -------------------- ------ --------------------                                                                              -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Total                                                        76,553                                           $ 21,749                                                                                               $ 18,435                                                                                               $ 40,184                                                                                               $ 19,019                                                                                               $ 20,278                                                                                               $ 39,297                                                                                                   $ 79,481  
                                                   ==================== ============== ====================                      ==================== ====== ====================                                                                          ==================== ====== ====================                                                                          ==================== ====== ====================                                                                          ==================== ====== ====================                                                                          ==================== ====== ====================                                                                          ==================== ====== ====================                                                                              ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
(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 $10.8 million spent during the first quarter of 2017 on
                         apartment unit renovations/rehabs (primarily kitchens and baths) on
                         approximately 740 same store apartment units (equating to
                         approximately $14,700 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 an 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 5,212
                         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. These estimates
                         include approximately $17.0 million or approximately $250 per
                         apartment unit of additional expenditures for resident focused
                         renovation projects such as common areas and fitness centers in
                         order to remain competitive with the new luxury supply being
                         delivered in many of our markets.
                                                                                                                                                                                                                                   
------------------------------------------------------------------ -------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Normalized EBITDA Reconciliations
                                                                                                                                                                                                                                     (Amounts in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                     Normalized EBITDA Reconciliations for Page 15
                                                                                                                                                                                                                                                                                                               
                                                                                        ---------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                            Trailing Twelve Months                                                                                              2017                                                                                                                                                                                           2016                                                                                                                                                  
                                                                                        --------------------------------------------------------------------------------------------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                      March 31, 2017                               December 31, 2016                                                       Q1                                                               Q4                                            Q3                                            Q2                                            Q1                     
                                                                                        --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------
Net income                                                                                                 $              898,214                                                              $            4,480,104                                                              $              149,941                                                              $              302,381                                                              $              217,492                                                              $              228,400                                                              $            3,731,831
Interest expense incurred, net                                                                                            374,964                                                                             482,246                                                                             106,210                                                                              95,930                                                                              86,352                                                                              86,472                                                                             213,492
Amortization of deferred financing costs                                                                                    9,535                                                                              12,633                                                                               2,296                                                                               2,633                                                                               2,261                                                                               2,345                                                                               5,394
Depreciation                                                                                                              711,732                                                                             705,649                                                                             178,968                                                                             177,407                                                                             179,230                                                                             176,127                                                                             172,885
Income and other tax expense (benefit) (includes discontinued                                                               1,529                                                                               1,625                                                                                 262                                                                                 425                                                                                 426                                                                                 416                                                                                 358
operations)
                                                                                                                                                                                                                                                               
                                                                                        -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
EBITDA                                                                                                                  1,995,974                                                                           5,682,257                                                                             437,677                                                                             578,776                                                                             485,761                                                                             493,760                                                                           4,123,960
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Write-off of pursuit costs (other expenses)                                                                                 3,359                                                                               4,092                                                                                 715                                                                                 713                                                                                 816                                                                               1,115                                                                               1,448
(Income) loss from investments in unconsolidated entities                                                                  (4,832 )                                                                            (4,801 )                                                                             1,073                                                                               1,045                                                                              (7,750 )                                                                               800                                                                               1,104
Net (gain) loss on sales of land parcels                                                                                  (23,202 )                                                                           (15,731 )                                                                           (19,193 )                                                                                28                                                                              (4,037 )                                                                    --                                                                             (11,722 )
(Gain) loss on sale of investment securities and other investments                                                        (57,853 )                                                                           (58,409 )                                                                    --                                                                                   7                                                                              (3,260 )                                                                           (54,600 )                                                                              (556 )
(interest and other income)
Insurance/litigation settlement or reserve income (interest and                                                            (3,555 )                                                                            (3,228 )                                                                              (380 )                                                                              (337 )                                                                            (1,517 )                                                                            (1,321 )                                                                               (53 )
other income)
Insurance/litigation/environmental settlement or reserve expense                                                            4,561                                                                               4,024                                                                                 293                                                                              (5,074 )                                                                             9,339                                                                                   3                                                                                (244 )
(other expenses)
Other                                                                                                                       1,241                                                                               2,839                                                                                  96                                                                                 373                                                                                 337                                                                                 435                                                                               1,694
Net (gain) on sales of discontinued operations                                                                                (28 )                                                                               (43 )                                                                    --                                                                      --                                                                                 (28 )                                                                    --                                                                                 (15 )
Net (gain) on sales of real estate properties                                                         (357,283 )                                                     (4,044,055 )                                                        (36,707 )                                                       (173,184 )                                                        (90,036 )                                                        (57,356 )                                                     (3,723,479 )
                                                                                        -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Normalized EBITDA                                                                                          $            1,558,382                                           $            1,566,945                                           $              383,574                                           $              402,347                                           $              389,625                                           $              382,836                                           $              392,137  
                                                                                        ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Balance Sheet Items:                                                                                  March 31, 2017                                                  December 31, 2016             
------------------------------------------------------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------
Total debt                                                                                                 $            8,929,925                                                              $            8,987,258
Cash and cash equivalents                                                                                                 (42,139 )                                                                           (77,207 )
Mortgage principal reserves/sinking funds                                                              (61,033 )                                                        (58,652 )
                                                                                        -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Net debt                                                                                                   $            8,826,753                                           $            8,851,399  
                                                                                        ==================== ==================== ====================                      ==================== ==================== ====================
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                               Equity Residential
                                                                                                                                     Adjustments from FFO to Normalized FFO
                                                                                                                                             (Amounts in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                              Quarter Ended March 31,                                                                                     
                                                                                            --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                            2017                                    2016                                  Variance               
                                                                                            --------------------------------------------------------                      --------------------------------------------------------                      --------------------------------------------------------
                                                                                                                                                                                                                                                                                             
Impairment                                                                                                     $ --                                           $ --                                           $ --  
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Asset impairment and valuation allowances                                                     --                          --                          --  
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                             
Write-off of pursuit costs (other expenses)                                                              715                                   1,448                                    (733 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Write-off of pursuit costs                                                                               715                                   1,448                                    (733 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                             
Prepayment premiums/penalties (interest expense)                                                                         11,698                                                                       112,419                                                                      (100,721 )
Write-off of unamortized deferred financing costs (interest expense)                                                        217                                                                         3,099                                                                        (2,882 )
Write-off of unamortized (premiums)/discounts/OCI (interest expense)                                     389                                   4,579                                  (4,190 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Debt extinguishment (gains) losses, including prepayment penalties,                                   12,304                                 120,097                                (107,793 )
preferred share redemptions
and non-cash convertible debt discounts
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                             
Net (gain) on sales of land parcels                                                                                     (19,193 )                                                                     (11,722 )                                                                      (7,471 )
(Gain) on sale of investment securities and other investments                                                    --                                                                          (556 )                                                                         556
(interest and other income)
(Income) loss from investments in unconsolidated entities -                                   301                                     301                          --  
non-operating assets
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
(Gains) losses on sales of non-operating assets, net of income and                                   (18,892 )                                                  (11,977 )                                                   (6,915 )
other tax expense (benefit)
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                             
Insurance/litigation settlement or reserve income (interest and                                                            (380 )                                                                         (53 )                                                                        (327 )
other income)
Insurance/litigation/environmental settlement or reserve expense                                                            293                                                                          (244 )                                                                         537
(other expenses)
Other                                                                                                     96                                   1,694                                  (1,598 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Other miscellaneous items                                                                                  9                                   1,397                                  (1,388 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                             
Adjustments from FFO to Normalized FFO                                                                         $         (5,864 )                                                            $        110,965                                           $       (116,829 )
                                                                                            ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                             

Note: See pages 24 through 27 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, are forward-looking and are consistent with the
information provided in the fourth quarter 2016 earnings release.
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 24 through 27 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)
-------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                        Q2 2017                    2017
                                                                                       --------------                      --------------------------------
Expected Normalized FFO Per Share                                                      $0.75 to $0.79                               $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
reflected on a straight-line basis in accordance with GAAP 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).
 
Development Yield - NOI that the Company anticipates
receiving in the next 12 months following stabilization 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 $50-$150 per apartment unit depending on
the type of asset) divided by the Total Capital Cost of the asset.
The weighted average Development Yield for development properties
is weighted based on the projected NOI streams and the relative
Total Capital Cost for each respective property.
 
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:
                                                      
                                                                                                                    Quarter Ended March 31, 2017     
                                                                                                                --------------------------------------------------------
                                                                                                                                                     
     Net Gain on Sales of Real Estate Properties                                                                $                            36,707
     Accumulated Depreciation Gain                                                                                       (12,773 )
                                                                                                                -------------------- -------------- --------------------
                                                                                                                                                     
     Economic Gain                                                                                              $                            23,934  
                                                                                                                ==================== ============== ====================
 
-----------------------------------------------------------------------------------------------------------------------------
                                                      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;
  ? 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 5 and 23 (the expected
guidance/projections provided below are based on current
expectations and are forward-looking):
                                                                                                                                                                                                   
                                                                                           Actual Q1 2017                                             Actual Q1 2016                                     Expected                               Expected
                                                                                              Per Share                                                                     Per Share                                                           Q2 2017                                 2017
                                                                                                                                                                                                                                               Per Share                              Per Share
                                                                                ----------------------------------  --------------------                      ----------------------------------  --------------------                      --------------                      --------------------
  EPS - Diluted                                                                 $                              0.39                                           $                              9.76                                           $0.51 to $0.55                         $1.83 to $1.93
  Add: Depreciation expense                                                                                    0.47                                                                          0.45                                                0.47                                   1.92
  Less: Net gain on sales                                                                  (0.10 )                                                    (9.74 )                                             (0.23)                                 (0.69)
                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      --------------                      --------------------
                                                                                                                                                                                                                                                                                 
  FFO per share - Diluted                                                                                      0.76                                                                          0.47                                            0.75 to 0.79                           3.06 to 3.16
                                                                                                                                                                                                                                                                                 
  Asset impairment and valuation allowances                                                          --                                                                --                                           --                         --
  Write-off of pursuit costs                                                                         --                                                                          0.01                                           --                              0.01
  Debt extinguishment (gains) losses, including prepayment                                                     0.03                                                                          0.31                                           --                              0.03
  penalties, preferred share redemptions and non-cash
  convertible debt discounts
  (Gains) losses on sales of non-operating assets, net of                                                     (0.05 )                                                                       (0.03 )                                         --                             (0.05)
  income and other tax expense (benefit)
  Other miscellaneous items                                                       --                          --                        --                         --
                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      --------------                      --------------------
                                                                                                                                                                                                                                                                                 
  Normalized FFO per share - Diluted                                            $                              0.74                        $                              0.76                        $0.75 to $0.79                         $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 either in the current or comparable periods. Rental income for all leases and operating expense for ground leases (for both same store and non-same store properties) are reflected on a straight-line basis in accordance with GAAP for the current and comparable periods.

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 9):

                                                                               Quarter Ended March 31,                                       
                                                           ------------------------------------------------------------------------------------------------------------------------
                                                                       2017                             2016              
                                                           -------------------------------------------------                      -------------------------------------------------
   Operating income                                                           $ 204,371                                                              $ 216,625
   Adjustments:
     Fee and asset management revenue                                              (180 )                                                               (2,918 )
     Property management                                                         22,252                                                                 23,495
     General and administrative                                                  14,173                                                                 16,717
     Depreciation                                            178,968                          172,885  
                                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
   Total NOI                                                                  $ 419,584                                           $ 426,804  
                                                           ==================== ======= ====================                      ==================== ======= ====================
   Rental income:
     Same store                                                               $ 560,236                                                              $ 545,846
     Non-same store                                           43,684                           70,319  
                                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
   Total rental income                                                          603,920                                                                616,165
   Operating expenses:
     Same store                                                                 167,316                                                                161,004
     Non-same store                                           17,020                           28,357  
                                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
   Total operating expenses                                                     184,336                                                                189,361
   NOI:
     Same store                                                                 392,920                                                                384,842
     Non-same store                                           26,664                           41,962  
                                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
   Total NOI                                                                  $ 419,584                                           $ 426,804  
                                                           ==================== ======= ====================                      ==================== ======= ====================
 
---------------------------------------------------------------------------------------------------------------------------
                                                     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 2016 and 2017,
plus any properties in lease-up and not stabilized as of January
1, 2016.
 
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, 2016, 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 is the compound annual rate of return
calculated by the Company based on the timing and amount of: (i)
the gross purchase price of the property plus any direct
acquisition costs incurred by the Company; (ii) total revenues
earned during the Company’s ownership period; (iii) total direct
property operating expenses (including real estate taxes and
insurance) incurred during the Company’s ownership period; (iv)
capital expenditures incurred during the Company’s ownership
period; and (v) the gross sales price of the property net of
selling costs. Each of the items (i) through (v) 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 (including loan assumption costs and other loan-related
costs) 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=20170425006860r1&sid=cmtx6&distro=nx&lang=en

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SOURCE: Equity Residential

Equity Residential 
Marty McKenna, (312) 928-1901


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