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

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 Equity Residential Reports Second Quarter 2017 Results
   Tuesday, July 25, 2017 4:15:14 PM ET

Equity Residential (EQR ) today reported results for the quarter and six months ended June 30, 2017. All per share results are reported as available to common shares/units on a diluted basis.

"Strong and steady demand for rental housing in our gateway, coastal markets continues to drive high occupancy, retention and renewal pricing despite elevated levels of new supply," said David J. Neithercut, Equity Residential’s President and CEO. "We are pleased to now expect full year same store revenue growth towards the upper end of our original guidance driven by Seattle, San Francisco and New York City which should meet our most optimistic projections for the year. This, combined with slightly higher than expected expense growth, should produce same store net operating income growth for the year in the upper half of our original range of expectations."



Second Quarter 2017

Earnings Per Share (EPS) for the second quarter of 2017 was $0.53 compared to $0.59 in the second quarter of 2016. The difference is due primarily to higher property sale gains in the second quarter of 2017, the various adjustment items listed on page 24 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 $0.77 per share for the second quarter of 2017 compared to $0.90 per share in the second quarter of 2016. The difference is due primarily to the various adjustment items listed on page 24 of this release and the items described below.

Normalized FFO for the second quarter of 2017 was $0.77 per share compared to $0.76 per share in the second quarter of 2016. The following items impacted Normalized FFO per share in the quarter:

-- A positive impact of approximately $0.01 per share from increased same store net operating income (NOI);

-- A positive impact of approximately $0.02 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);

-- A negative impact of approximately $0.01 per share from higher interest expense; and

-- A negative impact of approximately $0.02 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 6, 27 and 28 of this release and the Company has included guidance for Normalized FFO on page 25 and FFO and EPS on page 28 of this release.

Six Months Ended June 30, 2017

EPS for the six months ended June 30, 2017 was $0.92 compared to $10.36 in the six months ended June 30, 2016. The difference is due primarily to $9.58 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 24 of this release and the items described below.

FFO was $1.53 per share for the six months ended June 30, 2017 compared to $1.37 per share for the six months ended June 30, 2016. The difference is due primarily to the various adjustment items listed on page 24 of this release and the items described below.

Normalized FFO for the six months ended June 30, 2017 was $1.51 per share compared to $1.52 per share for the six months ended June 30, 2016. The following items impacted Normalized FFO per share in the period:

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

-- A positive impact of approximately $0.05 per share from Lease-Up NOI;

-- A positive impact of approximately $0.02 per share from lower corporate overhead (property management and general and administrative expenses);

-- A negative impact of approximately $0.02 per share from higher interest expense and lower interest and other income due to the impact of the high cash balances the Company carried in 2016; and

-- A negative impact of approximately $0.09 per share of lower NOI primarily as a result of the Company’s 2016 disposition activity.

Same Store Results

On a same store second quarter to second quarter comparison, which includes 71,354 apartment units, revenues increased 2.1%, expenses increased 4.1% and NOI increased 1.3%. Average Rental Rate increased 2.5% and occupancy decreased 0.4% to 95.8%.

On a same store six-month to six-month comparison, which includes 70,400 apartment units, revenues increased 2.3%, expenses increased 3.9% and NOI increased 1.7%. Average Rental Rate increased 2.5% and occupancy decreased 0.1% to 95.9%.

Investment Activity

During the second quarter of 2017, the Company acquired one consolidated apartment property in Seattle, consisting of 136 apartment units, for a purchase price of approximately $57.0 million at an Acquisition Capitalization Rate of 5.0%. Also during the second quarter, the Company sold two consolidated apartment properties, consisting of 600 apartment units, for an aggregate sale price of approximately $219.1 million at a weighted average Disposition Yield of 5.0% and generating an Unlevered IRR of 12.5%. Also during the quarter, the Company stabilized its 348-unit 340 Fremont development in San Francisco at a Development Yield of 4.7%.

In the first six months of 2017, the Company acquired the apartment property described above and sold three consolidated apartment properties, consisting of 904 apartment units, for an aggregate sale price of approximately $266.7 million at a weighted average Disposition Yield of 5.3% and generating an Unlevered IRR of 14.1%. During the first six months of 2017, the Company also sold one land parcel located in New York City for a sale price of approximately $33.5 million.

Third Quarter 2017 Guidance

The Company has established an EPS guidance range of $0.47 to $0.51 for the third quarter of 2017. The difference between the Company’s second quarter 2017 EPS of $0.53 and the midpoint of the third quarter 2017 guidance range of $0.49 is due primarily to lower expected gains on property sales and the items described below.

The Company has established an FFO guidance range of $0.77 to $0.81 per share for the third quarter of 2017. The difference between the Company’s second quarter 2017 FFO of $0.77 per share and the midpoint of the third quarter 2017 guidance range of $0.79 per share is due primarily to the items described below.

The Company has established a Normalized FFO guidance range of $0.77 to $0.81 per share for the third quarter of 2017. The difference between the Company’s second quarter 2017 Normalized FFO of $0.77 per share and the midpoint of the third quarter 2017 guidance range of $0.79 per share is due primarily to:

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

-- A negative impact of approximately $0.01 per share of lower NOI primarily as a result of the Company’s 2017 transaction activity.

Full Year 2017 Guidance

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

                                                      Previous             Revised
                                                                     ---------------                      --------------------
Same Store:
  Physical occupancy                                                       95.7%                                  95.8%
  Revenue change                                                       1.0% to 2.25%                         1.75% to 2.25%
  Expense change                                                       3.0% to 4.0%                           3.25% to 4.0%
  NOI change                                                           0.0% to 2.0%                          0.75% to 1.75%
                                                                                                           
EPS                                                                   $1.83 to $1.93                         $1.84 to $1.90
FFO per share                                                         $3.06 to $3.16                         $3.09 to $3.15
Normalized FFO per share                                              $3.05 to $3.15                         $3.08 to $3.14
                                                                                                           
Transactions:
  Consolidated Rental Acquisitions                                     $500 million                           $500 million
  Consolidated Rental Dispositions                                     $500 million                           $500 million
  Acquisition Cap Rate/Disposition Yield Spread                       75 basis points                        50 basis points
                                                                                                           

The change in the full year EPS guidance range is due primarily to lower expected gains on property sales and the items described below.

The change in the full year FFO and Normalized FFO per share guidance ranges is due primarily to an anticipated increase in same store NOI.

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 26 through 29 of this release.

Third Quarter 2017 Earnings and Conference Call

Equity Residential expects to announce third quarter 2017 results on Tuesday, October 24, 2017 and host a conference call to discuss those results at 10:00 a.m. CT on Wednesday, October 25, 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 301 properties consisting of 77,034 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, July 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)
 
                                                                                                                          Six Months Ended June 30,                                                                                                              Quarter Ended June 30,
                                                                                        ----------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                  2017                                                     2016                                                                       2017                                                       2016
                                                                                        ---------------------------------------------------------                     ----------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
REVENUES
  Rental income                                                                                            $      1,216,219                                                              $ 1,211,104                                                              $        612,299                                                              $        594,939
  Fee and asset management                                                                           361                              3,133                                     181                                     215  
                                                                                        -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
     Total revenues                                                                            1,216,580                          1,214,237                                 612,480                                 595,154  
                                                                                        -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                  
EXPENSES
  Property and maintenance                                                                                          201,924                                                                  205,472                                                                        99,316                                                                        96,307
  Real estate taxes and insurance                                                                                   169,231                                                                  157,611                                                                        87,503                                                                        77,415
  Property management                                                                                                43,841                                                                   44,486                                                                        21,589                                                                        20,991
  General and administrative                                                                                         27,799                                                                   35,013                                                                        13,626                                                                        18,296
  Depreciation                                                                                   358,864                            349,012                                 179,896                                 176,127  
                                                                                        -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
     Total expenses                                                                              801,659                            791,594                                 401,930                                 389,136  
                                                                                        -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                  
Operating income                                                                                                    414,921                                                                  422,643                                                                       210,550                                                                       206,018
                                                                                                                                                                                                                                                                                                                                                                  
  Interest and other income                                                                                           1,763                                                                   59,583                                                                         1,162                                                                        56,525
  Other expenses                                                                                                     (2,132 )                                                                 (4,060 )                                                                      (1,042 )                                                                      (1,504 )
  Interest:
     Expense incurred, net                                                                                         (197,434 )                                                               (299,964 )                                                                     (91,224 )                                                                     (86,472 )
     Amortization of deferred financing costs                                                     (4,383 )                                              (7,739 )                                                   (2,087 )                                                   (2,345 )
                                                                                        -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Income before income and other taxes, (loss) from investments in
  unconsolidated entities, net gain (loss) on sales of real estate
  properties and land parcels and discontinued operations                                                           212,735                                                                  170,463                                                                       117,359                                                                       172,222
Income and other tax (expense) benefit                                                                                 (482 )                                                                   (763 )                                                                        (220 )                                                                        (413 )
(Loss) from investments in unconsolidated entities                                                                   (1,755 )                                                                 (1,904 )                                                                        (682 )                                                                        (800 )
Net gain on sales of real estate properties                                                                         124,433                                                                3,780,835                                                                        87,726                                                                        57,356
Net gain (loss) on sales of land parcels                                                          19,170                             11,722                                     (23 )                                           --  
                                                                                        -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Income from continuing operations                                                                                   354,101                                                                3,960,353                                                                       204,160                                                                       228,365
Discontinued operations, net                                                              --                               (122 )                                           --                                      35  
                                                                                        -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income                                                                                                          354,101                                                                3,960,231                                                                       204,160                                                                       228,400
Net (income) attributable to Noncontrolling Interests:
  Operating Partnership                                                                                             (12,765 )                                                               (152,089 )                                                                      (7,354 )                                                                      (8,780 )
  Partially Owned Properties                                                                      (1,553 )                                              (1,545 )                                                     (765 )                                                     (781 )
                                                                                        -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income attributable to controlling interests                                                                    339,783                                                                3,806,597                                                                       196,041                                                                       218,839
Preferred distributions                                                                           (1,546 )                                              (1,545 )                                                     (773 )                                                     (772 )
                                                                                        -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income available to Common Shares                                                                      $        338,237                                           $ 3,805,052                                           $        195,268                                           $        218,067  
                                                                                        ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                  
Earnings per share - basic:
Income from continuing operations available to Common Shares                                               $           0.92                                           $     10.43                                           $           0.53                                           $           0.60  
                                                                                        ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
Net income available to Common Shares                                                                      $           0.92                                           $     10.43                                           $           0.53                                           $           0.60  
                                                                                        ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
Weighted average Common Shares outstanding                                                       366,713                            364,820                                 366,820                                 365,047  
                                                                                        ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                  
Earnings per share - diluted:
Income from continuing operations available to Common Shares                                               $           0.92                                           $     10.36                                           $           0.53                                           $           0.59  
                                                                                        ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
Net income available to Common Shares                                                                      $           0.92                                           $     10.36                                           $           0.53                                           $           0.59  
                                                                                        ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
Weighted average Common Shares outstanding                                                       382,505                            382,012                                 382,692                                 382,065  
                                                                                        ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                  
Distributions declared per Common Share outstanding                                                        $         1.0075                                           $    9.0075                                           $        0.50375                                           $        0.50375  
                                                                                        ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================
 
                                                                                                                                                                                          Equity Residential
                                                                                                                                                                    Consolidated Statements of Funds From Operations and Normalized
                                                                                                                                                                                         Funds From Operations
                                                                                                                                                                             (Amounts in thousands except per share data)
                                                                                                                                                                                              (Unaudited)
 
                                                                                                                                        Six Months Ended June 30,                                                                                                                 Quarter Ended June 30,
                                                                                                    ---------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                              2017                                                       2016                                                                          2017                                                       2016
                                                                                                    ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
Net income                                                                                                             $        354,101                                                              $      3,960,231                                                              $        204,160                                                              $        228,400
Net (income) attributable to Noncontrolling Interests - Partially
  Owned Properties                                                                                                               (1,553                    )                                                   (1,545                    )                                                     (765                    )                                                     (781                    )
Preferred distributions                                                                                       (1,546 )                                                   (1,545 )                                                     (773 )                                                     (772 )
                                                                                                    -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income available to Common Shares and Units                                                                                 351,002                                                                     3,957,141                                                                       202,622                                                                       226,847
                                                                                                                                                                                                                                                                                                                                                                                   
Adjustments:
   Depreciation                                                                                                                 358,864                                                                       349,012                                                                       179,896                                                                       176,127
   Depreciation - Non-real estate additions                                                                         (2,580 )                                                                      (2,635 )                                                                      (1,282 )                                                                      (1,227 )
   Depreciation - Partially Owned Properties                                                                        (1,666 )                                                                      (1,943 )                                                                        (834 )                                                                        (949 )
   Depreciation - Unconsolidated Properties                                                                          2,285                                                                         2,467                                                                         1,143                                                                         1,234
   Net (gain) on sales of unconsolidated entities - operating assets                                                                (68 )                                                              --                                                                --                                                                --
   Net (gain) on sales of real estate properties                                                                               (124,433 )                                                                  (3,780,835 )                                                                     (87,726 )                                                                     (57,356 )
   Discontinued operations:
      Net (gain) on sales of discontinued operations                                                  --                                     (15 )                                           --                          --  
                                                                                                    -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
FFO available to Common Shares and Units                                                                                        583,404                                                                       523,192                                                                       293,819                                                                       344,676
                                                                                                                                                                                                                                                                                                                                                                                   
Adjustments (see page 24 for additional detail):
   Asset impairment and valuation allowances                                                                             --                                                                --                                                                --                                                                --
   Write-off of pursuit costs                                                                                                     1,546                                                                         2,563                                                                           831                                                                         1,115
   Debt extinguishment (gains) losses, including prepayment
     penalties, preferred share redemptions and non-cash
     convertible debt discounts                                                                                                  12,402                                                                       120,164                                                                            98                                                                            67
   (Gains) losses on sales of non-operating assets, net of income
     and other tax expense (benefit)                                                                                            (18,950                    )                                                  (66,593                    )                                                      (58                    )                                                  (54,616                    )
   Other miscellaneous items                                                                                    (790 )                                                      514                                    (799 )                                                     (883 )
                                                                                                    -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Normalized FFO available to Common Shares and Units                                                                    $        577,612                                           $        579,840                                           $        293,891                                           $        290,359  
                                                                                                    ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                   
FFO                                                                                                                    $        584,950                                                              $        524,737                                                              $        294,592                                                              $        345,448
Preferred distributions                                                                                       (1,546 )                                                   (1,545 )                                                     (773 )                                                     (772 )
                                                                                                    -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
FFO available to Common Shares and Units                                                                               $        583,404                                           $        523,192                                           $        293,819                                           $        344,676  
                                                                                                    ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
FFO per share and Unit - basic                                                                                         $           1.54                                           $           1.38                                           $           0.77                                           $           0.91  
                                                                                                    ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
FFO per share and Unit - diluted                                                                                       $           1.53                                           $           1.37                                           $           0.77                                           $           0.90  
                                                                                                    ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                   
Normalized FFO                                                                                                         $        579,158                                                              $        581,385                                                              $        294,664                                                              $        291,131
Preferred distributions                                                                                       (1,546 )                                                   (1,545 )                                                     (773 )                                                     (772 )
                                                                                                    -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Normalized FFO available to Common Shares and Units                                                                    $        577,612                                           $        579,840                                           $        293,891                                           $        290,359  
                                                                                                    ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Normalized FFO per share and Unit - basic                                                                              $           1.52                                           $           1.53                                           $           0.77                                           $           0.77  
                                                                                                    ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Normalized FFO per share and Unit - diluted                                                                            $           1.51                                           $           1.52                                           $           0.77                                           $           0.76  
                                                                                                    ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                   
Weighted average Common Shares and Units outstanding - basic                                                 379,619                                 378,612                                 379,733                                 378,934  
                                                                                                    ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Weighted average Common Shares and Units outstanding - diluted                                               382,505                                 382,012                                 382,692                                 382,065  
                                                                                                    ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================

Note: See page 24 for additional detail regarding the adjustments from FFO to Normalized FFO. See pages 26 through 29 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)
 
                                                                                                     June 30,                                             December 31,
                                                                                                                          2017                                                                      2016
                                                                                                  -----------------------------------------------------                     -----------------------------------------------------
ASSETS
Investment in real estate
   Land                                                                                                              $  5,927,949                                                              $  5,899,862
   Depreciable property                                                                                                19,123,571                                                                18,730,579
   Projects under development                                                                                             325,823                                                                   637,168
   Land held for development                                                                           112,474                             118,816  
                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Investment in real estate                                                                                              25,489,817                                                                25,386,425
   Accumulated depreciation                                                                         (5,671,510 )                                           (5,360,389 )
                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Investment in real estate, net                                                                                         19,818,307                                                                20,026,036
Cash and cash equivalents                                                                                                  37,719                                                                    77,207
Investments in unconsolidated entities                                                                                     59,246                                                                    60,141
Deposits - restricted                                                                                        254,378                                                                    76,946
Escrow deposits - mortgage                                                                                    21,016                                                                    64,935
Other assets                                                                                           445,909                             398,883  
                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
        Total assets                                                                                                 $ 20,636,575                                           $ 20,704,148  
                                                                                                  ==================== ========== ====================                      ==================== ========== ====================
                                                                                                                                                                                                             
LIABILITIES AND EQUITY
Liabilities:
   Mortgage notes payable, net                                                                                       $  3,743,363                                                              $  4,119,181
   Notes, net                                                                                                           4,456,365                                                                 4,848,079
   Line of credit and commercial paper                                                                                    764,361                                                                    19,998
   Accounts payable and accrued expenses                                                                                  137,920                                                                   147,482
   Accrued interest payable                                                                                                48,823                                                                    60,946
   Other liabilities                                                                                                      324,002                                                                   350,466
   Security deposits                                                                                                       63,648                                                                    62,624
   Distributions payable                                                                               191,717                             192,296  
                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
        Total liabilities                                                                            9,730,199                           9,801,072  
                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                                                                                                                                                                             
Commitments and contingencies
                                                                                                                                                                                                             
Redeemable Noncontrolling Interests - Operating Partnership                               380,519                             442,092  
                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Equity:
   Shareholders’ equity:
      Preferred Shares of beneficial interest, $0.01 par value;
      100,000,000 shares
        authorized; 745,600 shares issued and outstanding as of June 30,
        2017 and
        December 31, 2016                                                                                                  37,280                                                                    37,280
      Common Shares of beneficial interest, $0.01 par value; 1,000,000,000
      shares
        authorized; 367,298,765 shares issued and outstanding as of June 30,
        2017 and
        365,870,924 shares issued and outstanding as of December 31, 2016                                                   3,673                                                                     3,659
      Paid in capital                                                                                                   8,838,804                                                                 8,758,422
      Retained earnings                                                                                                 1,511,899                                                                 1,543,626
      Accumulated other comprehensive (loss)                                                          (101,151 )                                             (113,909 )
                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
         Total shareholders’ equity                                                         10,290,505                                                                10,229,078
   Noncontrolling Interests:
      Operating Partnership                                                                                               229,049                                                                   221,297
      Partially Owned Properties                                                                         6,303                              10,609  
                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
         Total Noncontrolling Interests                                                                235,352                             231,906  
                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
         Total equity                                                                               10,525,857                          10,460,984  
                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
         Total liabilities and equity                                                                                $ 20,636,575                                           $ 20,704,148  
                                                                                                  ==================== ========== ====================                      ==================== ========== ====================
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                        Equity Residential
                                                                                                                                                         Portfolio Summary
                                                                                                                                                        As of June 30, 2017
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                     % of                                               Average
                                                                                                                                                        Apartment                                                                Stabilized                                                               Rental
             Markets/Metro Areas                                                   Properties                                                             Units                                                                      NOI                                                                   Rate
-------------------------------------------                      ----------------------------------------------                     -------------------------------------------------                     ---------------------------------------------------------                     ------------------------------------------
                                                                                                                                                                                                           
Los Angeles                                                                            70                                                                15,857                                                                          18.4 %                                                            $                2,423
Orange County                                                                          13                                                                 4,028                                                                           4.3 %                                                                             2,097
San Diego                                                           13                           3,505                                     3.9 %                                                          2,235
                                                                 -------------------- --- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------                      -------------------- --------------------
Subtotal - Southern California                                            96                                                                23,390                                                                          26.6 %                                                                             2,336
                                                                                                                                                                                                                                                                                                              
San Francisco                                                                          54                                                                12,959                                                                          19.7 %                                                                             3,066
New York                                                                               40                                                                10,632                                                                          18.0 %                                                                             3,745
Washington DC                                                                          47                                                                15,637                                                                          17.7 %                                                                             2,366
Boston                                                                                 23                                                                 6,103                                                                           9.8 %                                                                             2,941
Seattle                                                                                38                                                                 7,232                                                                           8.2 %                                                                             2,218
Other Markets                                                        1                             136                          -- %                                                          1,142
                                                                 -------------------- --- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------                      -------------------- --------------------
Total                                                                                 299                                                                76,089                                                                         100.0 %                                                                             2,702
                                                                                                                                                                                                                                                                                                              
Unconsolidated Properties                                            2                             945                          --                                --
                                                                 -------------------- --- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                              
Grand Total                                                        301                          77,034                                   100.0 %                                                            $                2,702
                                                                 ==================== === ====================                      ==================== ====== ====================                      ==================== ============== ====================                      ==================== ====================

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

 
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                      Equity Residential
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                       Portfolio as of June 30, 2017
 
                                                                        Properties                                           Apartment Units
                                                                 ---------------------------------------------------------------                     ------------------------------------------
                                                                                                                                   
Wholly Owned Properties                                                                                279                                                                              72,021
Master-Leased Properties - Consolidated                                                                  3                                                                                 853
Partially Owned Properties - Consolidated                                                               17                                                                               3,215
Partially Owned Properties - Unconsolidated                                           2                                           945
                                                                 -------------------- -------------------- --------------------                      -------------------- --------------------
                                                                                                                                                                           
                                                                                    301                                        77,034
                                                                 ==================== ==================== ====================                      ==================== ====================
                                      
------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
 
                                                                                                                                                                                          Portfolio Rollforward Q2 2017
                                                                                                                                                                                                ($ in thousands)
 
                                                                          Properties                                                        Apartment                                                     Purchase Price                                                     Acquisition
                                                                                                                                                                                                       Units                                                                                                                                                                 Cap Rate
                                                                                      ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------
                                                                                                                                                                                                                                                                                                             
                                                  3/31/2017                                                                 302                                                                              77,498
                                                                                                                                                                                                                                                                                                                                                                                             
Acquisitions:
  Consolidated:
     Rental Properties                                                                                                        1                                                                                 136                                                              $               57,028                                                                                 5.0 %
                                                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                        Sales Price                                                                         Disposition
                                                                                                                                                                                                                                                                                                                                                                               Yield
                                                                                                                                                                                                                                                              ------------------------------------------------------------                        ------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                             
Dispositions:
  Consolidated:
     Rental Properties                                                                                    (2 )                                                           (600 )                                                            $             (219,100 )                                                                              (5.0 %)
                                                                                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                             
                                                  6/30/2017                                              301                                        77,034  
                                                                                      ==================== ==================== ====================                      ==================== ==================== ====================
                                       
---------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
 
                                                                                                                                                          Portfolio Rollforward 2017
                                                                                                                                                               ($ in thousands)
 
                                                                            Properties                                                  Apartment                            Purchase Price                       Acquisition
                                                                                                                                                                                                   Units                                                                                                          Cap Rate
                                                                                           ------------------------------------------------------                        ------------------------------------------------------                        ----------------                        --------------------------------------------
                                                                                                                                                                                                                                                          
                                                           12/31/2016                                                      302                                                                        77,458
                                                                                                                                                                                                                                                                                                                          
Acquisitions:
  Consolidated:
     Rental Properties                                                                                                       1                                                                           136                                              $   57,028                                                 5.0 %
                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                           Sales Price                                           Disposition
                                                                                                                                                                                                                                                                                                                    Yield
                                                                                                                                                                                                                                                       ----------------                        --------------------------------------------
                                                                                                                                                                                                                                                                                                                          
Dispositions:
  Consolidated:
     Rental Properties                                                                                                      (3 )                                                                        (904 )                                            $ (266,700 )                                              (5.3 %)
     Land Parcels                                                                                               --                                                                --                                              $  (33,450 )
Completed Developments - Consolidated                                                                     1                                     344  
                                                                                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                          
                                                            6/30/2017                                   301                                  77,034  
                                                                                           ==================== ============== ====================                      ==================== ============== ====================
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                                     Second Quarter 2017 vs. Second Quarter 2016
                                                                                                                                                                                                                                     Same Store Results/Statistics for 71,354 Same Store Apartment
                                                                                                                                                                                                                                     Units
                                                                                                                                                                                                                                     $ in thousands (except for Average Rental Rate)
 
                                                                                                                                       Results                                                                                                                                                                                                                                Statistics
                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Description                                                     Revenues                                                         Expenses                                                            NOI                                                                               Average                                                         Physical                                                         Turnover
                                                                                                                                                                                                                                                                                                                                  Rental                                                                             Occupancy
                                                                                                                                                                                                                                                                                                                                   Rate
--------------------                      ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                            
       Q2 2017                                               $              571,362                                                              $              167,047                                                              $              404,315                                                              $                2,669                                                                                95.8 %                                                                              14.0 %
       Q2 2016                                               $              559,564                                           $              160,478                                           $              399,086                                           $                2,605                                          96.2 %                                                           15.0 %
                                          -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
       Change                                                $               11,798                                           $                6,569                                           $                5,229                                           $                   64                                          (0.4 %)                                                          (1.0 %)
                                          ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
       Change                                                                   2.1 %                                                                               4.1 %                                                                               1.3 %                                                                               2.5 %
                                                 
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
 
                                                                                                                                                                                                                                     Second Quarter 2017 vs. First Quarter 2017
                                                                                                                                                                                                                                     Same Store Results/Statistics for 73,265 Same Store Apartment
                                                                                                                                                                                                                                     Units
                                                                                                                                                                                                                                     $ in thousands (except for Average Rental Rate)
 
                                                                                                                                       Results                                                                                                                                                                                                                                Statistics
                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Description                                                     Revenues                                                         Expenses                                                            NOI                                                                               Average                                                         Physical                                                         Turnover
                                                                                                                                                                                                                                                                                                                                  Rental                                                                             Occupancy
                                                                                                                                                                                                                                                                                                                                   Rate
--------------------                      ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                            
       Q2 2017                                               $              590,181                                                              $              175,920                                                              $              414,261                                                              $                2,688                                                                                95.8 %                                                                              14.1 %
       Q1 2017                                               $              584,141                                           $              176,186                                           $              407,955                                           $                2,663                                          95.8 %                                                           11.3 %
                                          -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
       Change                                                $                6,040                                           $                 (266 )                                                            $                6,306                                           $                   25                                           0.0 %                                                            2.8 %
                                          ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
       Change                                                                   1.0 %                                                                              (0.2 %)                                                                              1.5 %                                                                               0.9 %
                                                 
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
 
                                                                                                                                                            June YTD 2017 vs. June YTD 2016
                                                                                                                                             Same Store Results/Statistics for 70,400 Same Store Apartment
                                                                                                                                                                         Units
                                                                                                                                                    $ in thousands (except for Average Rental Rate)
 
                                                                                 Results                                                                                                                                         Statistics
                                 --------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------------------------------
 Description                                  Revenues                           Expenses                             NOI                                               Average                        Physical                                Turnover
                                                                                                                                                                                                              Rental                                            Occupancy
                                                                                                                                                                                                               Rate
-----------                      -------------------------------                        -----------------------------                        -----------------------------                        ---------------------------                        ---------------------------                        --------------------------------------------
                                                                                                                                                                                                                                                                                      
  YTD 2017                        $ 1,118,370                                            $ 330,252                                            $ 788,118                                            $ 2,649                                                                95.9 %                                             25.2 %
  YTD 2016                        $ 1,092,822                         $ 317,862                         $ 774,960                         $ 2,584                          96.0 %                          25.9 %
                                 -- --------- --------------------                      -- ------- --------------------                      -- ------- --------------------                      -- ----- --------------------                      -------------------- ---- ---                      -------------------- ---- --------------------
                                                                                                                                                                                                                                                                                                                                   
   Change                         $    25,548                         $  12,390                         $  13,158                         $    65                          (0.1 %)                         (0.7 %)
                                 == ========= ====================                      == ======= ====================                      == ======= ====================                      == ===== ====================                      ==================== ==== ===                      ==================== ==== ====================
                                                                                                                                                                                                                                                                                                                                   
   Change                                 2.3 %                                                3.9 %                                                1.7 %                                              2.5 %

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 28 for reconciliations from operating income.

 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Second Quarter 2017 vs. Second Quarter 2016
                                                                                                                                                                                                                                     Same Store Results/Statistics by Market
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Increase (Decrease) from Prior Year’s Quarter
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
             Markets/Metro Areas                                                            Apartment                                                                            Q2 2017                                                                             Q2 2017                                                                             Q2 2017                                                                             Q2 2017                                                                            Revenues                                                         Expenses                                                            NOI                                                            Average                                                         Physical                                                         Turnover
                                                                                              Units                                                                               % of                                                                               Average                                                                            Weighted                                                                            Turnover                                                                                                                                                                                                                                                                                                                                         Rental                                                                             Occupancy
                                                                                                                                                                                 Actual                                                                              Rental                                                                              Average                                                                                                                                                                                                                                                                                                                                                                                                                              Rate
                                                                                                                                                                                   NOI                                                                                Rate                                                                              Physical
                                                                                                                                                                                                                                                                                                                                                       Occupancy %
-------------------------------------------                      ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Los Angeles                                                                                         14,336                                                                                17.7 %                                                            $                2,405                                                                                95.7 %                                                                              15.5 %                                                                               3.5 %                                                                               3.1 %                                                                               3.7 %                                                                               3.9 %                                                                              (0.4 %)                                                                             (1.6 %)
San Diego                                                                                            3,505                                                                                 4.2 %                                                                             2,235                                                                                96.3 %                                                                              15.5 %                                                                               4.0 %                                                                               2.5 %                                                                               4.6 %                                                                               4.4 %                                                                              (0.2 %)                                                                             (1.2 %)
Orange County                                                                     3,684                                           4.1 %                                                          2,062                                          96.3 %                                                           13.2 %                                                            4.6 %                                                            7.2 %                                                            3.8 %                                                            4.8 %                                                           (0.1 %)                                                          (1.2 %)
                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Subtotal - Southern California                                                         21,525                                                                                26.0 %                                                                             2,318                                                                                95.9 %                                                                              15.1 %                                                                               3.8 %                                                                               3.5 %                                                                               3.9 %                                                                               4.1 %                                                                              (0.3 %)                                                                             (1.4 %)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
New York                                                                                            10,396                                                                                19.2 %                                                                             3,723                                                                                96.1 %                                                                              11.1 %                                                                              (0.1 %)                                                                              6.4 %                                                                              (3.3 %)                                                                              0.1 %                                                                              (0.3 %)                                                                             (0.3 %)
Washington DC                                                                                       15,475                                                                                18.5 %                                                                             2,366                                                                                95.5 %                                                                              14.3 %                                                                               0.8 %                                                                               4.3 %                                                                              (0.6 %)                                                                              1.7 %                                                                              (0.7 %)                                                                              0.4 %
San Francisco                                                                                       11,019                                                                                17.7 %                                                                             2,932                                                                                95.9 %                                                                              13.2 %                                                                               2.1 %                                                                               1.2 %                                                                               2.3 %                                                                               2.5 %                                                                              (0.4 %)                                                                             (2.7 %)
Boston                                                                                               6,009                                                                                10.3 %                                                                             2,941                                                                                95.7 %                                                                              14.1 %                                                                               1.8 %                                                                               1.0 %                                                                               2.1 %                                                                               1.5 %                                                                              (0.3 %)                                                                              0.0 %
Seattle                                                                                              6,794                                                                                 8.2 %                                                                             2,215                                                                                95.8 %                                                                              15.6 %                                                                               6.4 %                                                                               6.8 %                                                                               6.2 %                                                                               6.0 %                                                                               0.2 %                                                                              (1.7 %)
Other Markets                                                                                          136                                                                                 0.1 %                                                                             1,142                                                                                98.5 %                                                                              17.6 %                                                                               2.6 %                                                                               2.6 %                                                                               2.6 %                                                                               2.8 %                                                                              (0.1 %)                                                                              2.2 %
                                                                                                                                                                                                                                                                                                                                                    
                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Total                                                                            71,354                                         100.0 %                                                            $                2,669                                          95.8 %                                                           14.0 %                                                            2.1 %                                                            4.1 %                                                            1.3 %                                                            2.5 %                                                           (0.4 %)                                                          (1.0 %)
                                                                 ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Second Quarter 2017 vs. First Quarter 2017
                                                                                                                                                                                                                                     Same Store Results/Statistics by Market
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Increase (Decrease) from Prior Quarter
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
             Markets/Metro Areas                                                            Apartment                                                                            Q2 2017                                                                             Q2 2017                                                                             Q2 2017                                                                             Q2 2017                                                                            Revenues                                                         Expenses                                                            NOI                                                            Average                                                         Physical                                                         Turnover
                                                                                              Units                                                                               % of                                                                               Average                                                                            Weighted                                                                            Turnover                                                                                                                                                                                                                                                                                                                                         Rental                                                                             Occupancy
                                                                                                                                                                                 Actual                                                                              Rental                                                                              Average                                                                                                                                                                                                                                                                                                                                                                                                                              Rate
                                                                                                                                                                                   NOI                                                                                Rate                                                                              Physical
                                                                                                                                                                                                                                                                                                                                                       Occupancy %
-------------------------------------------                      ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Los Angeles                                                                                         14,430                                                                                17.4 %                                                            $                2,408                                                                                95.7 %                                                                              15.5 %                                                                               1.3 %                                                                              (1.4 %)                                                                              2.4 %                                                                               1.2 %                                                                               0.0 %                                                                               2.9 %
San Diego                                                                                            3,505                                                                                 4.1 %                                                                             2,235                                                                                96.3 %                                                                              15.5 %                                                                               0.9 %                                                                              (0.9 %)                                                                              1.5 %                                                                               0.7 %                                                                               0.3 %                                                                              (0.1 %)
Orange County                                                                     3,684                                           4.0 %                                                          2,062                                          96.3 %                                                           13.2 %                                                            1.6 %                                                           (1.6 %)                                                           2.6 %                                                            1.4 %                                                            0.2 %                                                            2.1 %
                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Subtotal - Southern California                                                         21,619                                                                                25.5 %                                                                             2,321                                                                                95.9 %                                                                              15.1 %                                                                               1.3 %                                                                              (1.4 %)                                                                              2.3 %                                                                               1.2 %                                                                               0.0 %                                                                               2.3 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
San Francisco                                                                                       12,299                                                                                19.0 %                                                                             2,989                                                                                95.7 %                                                                              13.4 %                                                                               0.8 %                                                                               8.1 %                                                                              (1.6 %)                                                                              0.8 %                                                                               0.0 %                                                                               1.7 %
New York                                                                                            10,632                                                                                18.9 %                                                                             3,745                                                                                96.1 %                                                                              11.2 %                                                                               0.6 %                                                                              (3.8 %)                                                                              3.3 %                                                                               0.3 %                                                                               0.2 %                                                                               2.0 %
Washington DC                                                                                       15,475                                                                                18.1 %                                                                             2,366                                                                                95.5 %                                                                              14.3 %                                                                               0.6 %                                                                              (0.3 %)                                                                              1.0 %                                                                               1.0 %                                                                              (0.4 %)                                                                              4.5 %
Boston                                                                                               6,009                                                                                10.0 %                                                                             2,941                                                                                95.7 %                                                                              14.1 %                                                                               1.3 %                                                                              (2.0 %)                                                                              2.6 %                                                                               0.8 %                                                                              (0.1 %)                                                                              4.6 %
Seattle                                                                                              7,095                                                                                 8.4 %                                                                             2,218                                                                                95.8 %                                                                              15.8 %                                                                               2.6 %                                                                               3.2 %                                                                               2.3 %                                                                               2.1 %                                                                               0.0 %                                                                               2.0 %
Other Markets                                                                                          136                                                                                 0.1 %                                                                             1,142                                                                                98.5 %                                                                              17.6 %                                                                              (0.6 %)                                                                            (26.6 %)                                                                             18.5 %                                                                               0.1 %                                                                              (0.8 %)                                                                             12.5 %
                                                                                                                                                                                                                                                                                                                                                    
                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Total                                                                            73,265                                         100.0 %                                                            $                2,688                                          95.8 %                                                           14.1 %                                                            1.0 %                                                           (0.2 %)                                                           1.5 %                                                            0.9 %                                                            0.0 %                                                            2.8 %
                                                                 ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     June YTD 2017 vs. June YTD 2016
                                                                                                                                                                                                                                     Same Store Results/Statistics by Market
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Increase (Decrease) from Prior Year
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
             Markets/Metro Areas                                                            Apartment                                                                          June YTD 17                                                                         June YTD 17                                                                         June YTD 17                                                                         June YTD 17                                                                          Revenues                                                         Expenses                                                            NOI                                                            Average                                                         Physical                                                         Turnover
                                                                                              Units                                                                               % of                                                                               Average                                                                            Weighted                                                                            Turnover                                                                                                                                                                                                                                                                                                                                         Rental                                                                             Occupancy
                                                                                                                                                                                 Actual                                                                              Rental                                                                              Average                                                                                                                                                                                                                                                                                                                                                                                                                              Rate
                                                                                                                                                                                   NOI                                                                                Rate                                                                              Physical
                                                                                                                                                                                                                                                                                                                                                       Occupancy %
-------------------------------------------                      ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Los Angeles                                                                                         14,038                                                                                17.6 %                                                            $                2,395                                                                                95.8 %                                                                              28.0 %                                                                               3.7 %                                                                               4.0 %                                                                               3.5 %                                                                               4.1 %                                                                              (0.3 %)                                                                             (0.8 %)
San Diego                                                                                            3,505                                                                                 4.2 %                                                                             2,228                                                                                96.2 %                                                                              31.1 %                                                                               4.6 %                                                                               3.2 %                                                                               5.0 %                                                                               4.6 %                                                                               0.1 %                                                                               0.3 %
Orange County                                                                     3,684                                           4.2 %                                                          2,048                                          96.2 %                                                           24.3 %                                                            5.1 %                                                            6.8 %                                                            4.5 %                                                            4.9 %                                                            0.2 %                                                           (0.6 %)
                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Subtotal - Southern California                                                         21,227                                                                                26.0 %                                                                             2,307                                                                                95.9 %                                                                              27.9 %                                                                               4.0 %                                                                               4.3 %                                                                               3.9 %                                                                               4.3 %                                                                              (0.2 %)                                                                             (0.5 %)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Washington DC                                                                                       15,475                                                                                18.9 %                                                                             2,354                                                                                95.7 %                                                                              24.1 %                                                                               1.4 %                                                                               3.5 %                                                                               0.5 %                                                                               1.8 %                                                                              (0.3 %)                                                                              0.7 %
New York                                                                                            10,007                                                                                18.4 %                                                                             3,673                                                                                96.0 %                                                                              20.2 %                                                                               0.0 %                                                                               5.7 %                                                                              (3.0 %)                                                                              0.1 %                                                                              (0.4 %)                                                                              0.1 %
San Francisco                                                                                       11,019                                                                                18.1 %                                                                             2,924                                                                                95.9 %                                                                              24.7 %                                                                               2.5 %                                                                               1.3 %                                                                               2.9 %                                                                               2.8 %                                                                              (0.4 %)                                                                             (3.3 %)
Boston                                                                                               6,009                                                                                10.5 %                                                                             2,930                                                                                95.8 %                                                                              23.6 %                                                                               1.5 %                                                                               0.9 %                                                                               1.8 %                                                                               1.3 %                                                                               0.5 %                                                                              (2.1 %)
Seattle                                                                                              6,527                                                                                 8.0 %                                                                             2,198                                                                                95.8 %                                                                              29.1 %                                                                               6.3 %                                                                               6.1 %                                                                               6.4 %                                                                               5.8 %                                                                               0.3 %                                                                              (0.7 %)
Other Markets                                                                                          136                                                                                 0.1 %                                                                             1,142                                                                                98.8 %                                                                              22.8 %                                                                               4.4 %                                                                              16.6 %                                                                              (1.6 %)                                                                              4.4 %                                                                               0.0 %                                                                              (1.5 %)
                                                                                                                                                                                                                                                                                                                                                    
                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Total                                                                            70,400                                         100.0 %                                                            $                2,649                                          95.9 %                                                           25.2 %                                                            2.3 %                                                            3.9 %                                                            1.7 %                                                            2.5 %                                                           (0.1 %)                                                          (0.7 %)
                                                                 ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                           Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                               Second Quarter 2017 vs. Second Quarter 2016
                                                                                                                                                                                                      Same Store Operating Expenses for 71,354 Same Store Apartment
                                                                                                                                                                                                                                  Units
                                                                                                                                                                                                                             $ in thousands
 
                                                                   Actual                                                           Actual                                                              $                                                                %                                                           % of Actual
                                                                                      Q2 2017                                                                             Q2 2016                                                                             Change                                                                              Change                                                                              Q2 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                     Operating
                                                                                                                                                                                                                                                                                                                                                                                                                                     Expenses
                                                          ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                        
Real estate taxes                                                            $               71,519                                                              $               68,331                                                              $                3,188                                                                                 4.7 %                                                                              42.8 %
On-site payroll (1)                                                                          38,211                                                                              35,270                                                                               2,941                                                                                 8.3 %                                                                              22.9 %
Utilities (2)                                                                                21,239                                                                              20,809                                                                                 430                                                                                 2.1 %                                                                              12.7 %
Repairs and maintenance (3)                                                                  21,841                                                                              21,643                                                                                 198                                                                                 0.9 %                                                                              13.1 %
Insurance                                                                                     4,242                                                                               4,417                                                                                (175 )                                                                              (4.0 %)                                                                              2.5 %
Leasing and advertising                                                                       2,193                                                                               2,151                                                                                  42                                                                                 2.0 %                                                                               1.3 %
Other on-site operating expenses (4)                                       7,802                                         7,857                                           (55 )                                                           (0.7 %)                                                           4.7 %
                                                          -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Same store operating expenses                                                $              167,047                                           $              160,478                                           $                6,569                                           4.1 %                                                          100.0 %
                                                          ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                         
------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
 
                                                                                                                                                                         June YTD 2017 vs. June YTD 2016
                                                                                                                                                          Same Store Operating Expenses for 70,400 Same Store Apartment
                                                                                                                                                                                      Units
                                                                                                                                                                                 $ in thousands
 
                                                             Actual                                              Actual                                                $                                        %                                   % of Actual
                                                                               YTD 2017                                                               YTD 2016                                                               Change                                                      Change                                                     YTD 2017
                                                                                                                                                                                                                                                                                                                                                    Operating
                                                                                                                                                                                                                                                                                                                                                    Expenses
                                                          -----------------------------------------------                        -----------------------------------------------                        ----------------------------------------------                        --------------------------                        ---------------------------------------------
                                                                                                                                                                                                                                                                                                              
Real estate taxes                                                            $ 140,236                                                              $ 134,556                                                              $  5,680                                                                 4.2 %                                             42.5 %
On-site payroll (1)                                                             74,656                                                                 70,249                                                                 4,407                                                                 6.3 %                                             22.6 %
Utilities (2)                                                                   44,530                                                                 43,657                                                                   873                                                                 2.0 %                                             13.5 %
Repairs and maintenance (3)                                                     41,735                                                                 40,338                                                                 1,397                                                                 3.5 %                                             12.6 %
Insurance                                                                        8,361                                                                  8,695                                                                  (334 )                                                              (3.8 %)                                             2.5 %
Leasing and advertising                                                          4,550                                                                  4,233                                                                   317                                                                 7.5 %                                              1.4 %
Other on-site operating expenses (4)                         16,184                           16,134                              50                           0.3 %                           4.9 %
                                                          -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------ --------------------                      -------------------- ---- --                      -------------------- ----- --------------------
                                                                                                                                                                                                                                                                                                                                                            
Same store operating expenses                                                $ 330,252                                           $ 317,862                                           $ 12,390                           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 June 30, 2017
                                                                                                                                            ($ in thousands)
 
                                                                                Amounts (1)                                % of Total                        Weighted                              Weighted
                                                                                                                                                                                                                       Average                                                  Average
                                                                                                                                                                                                                      Rates (1)                                               Maturities
                                                                                                                                                                                                                                                                                (years)
                                                                              -------------------------------------------------                        ----------------------------                        ---------------------------                        ----------------------------------------
                                                                                                                                                                                                                         
Secured                                                                                          $ 3,743,363                                                                 41.8 %                                             4.38 %                                                              5.9
Unsecured                                                                       5,220,726                           58.2 %                          4.28 %                                           8.9
                                                                              -------------------- --------- --------------------                      -------------------- ----- ---                      -------------------- ---- ---                      -------------------- --------------------
                                                                                                                                                                                                                                                                                    
     Total                                                                                       $ 8,964,089                          100.0 %                          4.32 %                                           7.6
                                                                              ==================== ========= ====================                      ==================== ===== ===                      ==================== ==== ===                      ==================== ====================
Fixed Rate Debt:
  Secured - Conventional                                                            $ 3,108,842                                                                 34.7 %                                             4.96 %                                                              4.4
  Unsecured - Public                                               4,006,424                           44.7 %                          4.76 %                                          11.3
                                                                              -------------------- --------- --------------------                      -------------------- ----- ---                      -------------------- ---- ---                      -------------------- --------------------
                                                                                                                                                                                                                                                                                    
     Fixed Rate Debt                                                            7,115,266                           79.4 %                          4.85 %                                           8.3
                                                                              -------------------- --------- --------------------                      -------------------- ----- ---                      -------------------- ---- ---                      -------------------- --------------------
                                                                                                                                                                                                                                                                                    
Floating Rate Debt:
  Secured - Conventional                                                                  7,045                                                                  0.1 %                                             0.87 %                                                             16.4
  Secured - Tax Exempt                                                                  627,476                                                                  7.0 %                                             1.43 %                                                             12.5
  Unsecured - Public (2)                                                                449,941                                                                  5.0 %                                             1.69 %                                                              2.0
  Unsecured - Revolving Credit Facility (3)                                             265,000                                                                  2.9 %                                             2.00 %                                                              4.5
  Unsecured - Commercial Paper Program (4)                           499,361                            5.6 %                          1.31 %                                --
                                                                              -------------------- --------- --------------------                      -------------------- ----- ---                      -------------------- ---- ---                      -------------------- --------------------
                                                                                                                                                                                                                                                                                    
     Floating Rate Debt                                                         1,848,823                           20.6 %                          1.50 %                                           5.1
                                                                              -------------------- --------- --------------------                      -------------------- ----- ---                      -------------------- ---- ---                      -------------------- --------------------
                                                                                                                                                                                                                                                                                    
Total                                                                                            $ 8,964,089                          100.0 %                          4.32 %                                           7.6
                                                                              ==================== ========= ====================                      ==================== ===== ===                      ==================== ==== ===                      ==================== ====================
(1)                        Net of the effect of any derivative instruments. Weighted average
                                              rates are for the six months ended June 30, 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%), or based on bids received from the lending group, 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 June 30, 2017, there was
                                              approximately $1.22 billion available on the Company’s unsecured
                                              revolving credit facility (net of $12.1 million which was
                                              restricted/dedicated to support letters of credit, net of $265.0
                                              million outstanding on the revolving credit facility and net of
                                              $500.0 million in principal 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
                                              1.31% for the six months ended June 30, 2017 and a weighted average
                                              maturity of 30 days as of June 30, 2017.
 
Note: The Company capitalized interest of approximately $16.6
million and $28.4 million during the six months ended June 30, 2017
and 2016, respectively. The Company capitalized interest of
approximately $8.4 million and $14.2 million during the quarters
ended June 30, 2017 and 2016, respectively.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                    Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                        Debt Maturity Schedule as of June 30, 2017
                                                                                                                                                                                                                     ($ in thousands)
 
                        Year                                                  Fixed                                                 Floating                                                  Total                                            % of Total                                        Weighted                                         Weighted
                                                                                               Rate (1)                                                Rate (1)                                                                                                                                                                                         Average Rates                                                          Average
                                                                                                                                                                                                                                                                                                                                                          on Fixed                                                            Rates on
                                                                                                                                                                                                                                                                                                                                                        Rate Debt (1)                                                      Total Debt (1)
---------------------------------------------------                      -------------------------------------------------       -------------------------------------------------       -------------------------------------------------                        ---------------------------------------------                        --------------------------------------------                        --------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                      
                        2017                                                                $   197,531                                             $   500,100                      (2)                    $   697,631                                                                  7.7 %                                                              7.11 %                                                              3.11 %
                        2018                                                                     82,734                                                  97,235                                                 179,969                                                                  2.0 %                                                              5.58 %                                                              3.63 %
                        2019                                                                    506,731                      (3)                        471,427                                                 978,158                                                                 10.8 %                                                              5.17 %                                                              3.51 %
                        2020                                                                  1,678,592                      (4)                            400                                               1,678,992                                                                 18.5 %                                                              5.49 %                                                              5.49 %
                        2021                                                                    927,506                                                     300                                                 927,806                                                                 10.2 %                                                              4.64 %                                                              4.64 %
                        2022                                                                    265,341                                                 265,400                      (5)                        530,741                                                                  5.9 %                                                              3.26 %                                                              2.62 %
                        2023                                                                  1,326,800                                                   4,700                                               1,331,500                                                                 14.7 %                                                              3.74 %                                                              3.73 %
                        2024                                                                      1,272                                                  11,300                                                  12,572                                                                  0.1 %                                                              4.79 %                                                              1.34 %
                        2025                                                                    451,334                                                  13,800                                                 465,134                                                                  5.1 %                                                              3.38 %                                                              3.31 %
                        2026                                                                    593,424                                                  15,000                                                 608,424                                                                  6.7 %                                                              3.59 %                                                              3.52 %
                        2027+                                              1,126,437           532,165         1,658,602                           18.3 %                                           4.52 %                                           3.38 %
                                                                         -------------------- --------- --------------------     -------------------- --------- --------------------     -------------------- --------- --------------------                      -------------------- ----- --------------------                      -------------------- ---- --------------------                      -------------------- ---- --------------------
                      Subtotal                                                                7,157,702                                               1,911,827                                               9,069,529                                                                100.0 %                                                              4.52 %                                                              3.91 %
 Deferred Financing Costs and Unamortized (Discount)                         (42,436 )                            (63,004 )                           (105,440 )                                                                N/A                                              N/A                                              N/A  
                                                                         -------------------- --------- --------------------     -------------------- --------- --------------------     -------------------- --------- --------------------                      -----------------------------------------------                      ----------------------------------------------                      ----------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                      
                        Total                                                               $ 7,115,266                          $ 1,848,823                          $ 8,964,089                          100.0 %                                           4.52 %                                           3.91 %
                                                                         ==================== ========= ====================     ==================== ========= ====================     ==================== ========= ====================                      ==================== ===== ====================                      ==================== ==== ====================                      ==================== ==== ====================
(1)   Net of the effect of any derivative instruments. Weighted average
                         rates are as of June 30, 2017.
                          
(2)                      Includes $500.0 million in principal outstanding on the Company’s
                         commercial paper program.
                          
(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.
                          
(5)                      Includes $265.0 million outstanding on the Company’s unsecured
                         revolving credit facility.
 
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                        Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                             Selected Unsecured Public Debt Covenants
 
                                                                         June 30,                               March 31,
                                                                                              2017                                                      2017
                                                                                  ------------------------------------------------                      ------------------------------------------
   Total Debt to Adjusted Total Assets (not to exceed 60%)                           35.0%                                                     35.1%
                                                                                                                                                                              
   Secured Debt to Adjusted Total Assets (not to exceed 40%)                                            14.6%                                                                        14.8%
                                                                                                                                                                              
   Consolidated Income Available for Debt Service to                                                    4.20                                                                         3.96
   Maximum Annual Service Charges
   (must be at least 1.5 to 1)
                                                                                                                                                                              
   Total Unsecured Assets to Unsecured Debt                                                            378.3%                                                                       377.6%
   (must be at least 150%)

Note: These selected covenants relate to ERP Operating Limited Partnership’s ("ERPOP") outstanding unsecured public debt, which represent the Company’s most restrictive covenants. Equity Residential is the general partner of ERPOP.

 
-------------------------------------------------------------------------------------------------------------------------------------
 
                                                       Selected Credit Ratios
 
                                            June 30,         March 31,
                                                                                    2017                                2017
                                                                                  --------                      --------------------
   Total debt to Normalized EBITDA                                                  5.72x                               5.73x
                                                                                                                 
   Net debt to Normalized EBITDA                                                    5.69x                               5.66x
                                                                                                                 
   Unencumbered NOI as a % of total NOI                                             72.9%                               72.8%

Note: See page 23 for the Normalized EBITDA reconciliations.

 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                 Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                        Capital Structure as of June 30, 2017
                                                                                                                                                                                                         (Amounts in thousands except for share/unit and per share amounts)
 
  Secured Debt                                                                                                                                                    $            3,743,363                       41.8 %                       
  Unsecured Debt                                                                                                                                                                                                                                           5,220,726                                          58.2 %
                                                                                                                                                                                                                                              -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Total Debt                                                                                                                                                                                                                                                                    8,964,089                                                                               100.0 %                                                                              26.3 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
  Common Shares (includes Restricted Shares)                                                        367,298,765                                                                                96.4 %
  Units (includes OP Units and Restricted Units)                                  13,816,133                                           3.6 %
                                                                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Total Shares and Units                                                                              381,114,898                                                                               100.0 %
Common Share Price at June 30, 2017                                                      $                65.83  
                                                                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                             25,088,794                                                                                99.9 %
Perpetual Preferred Equity (see below)                                                                                                                                                                                                                        37,280                                           0.1 %
                                                                                                                                                                                                                                              -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Total Equity                                                                                                                                                                                                                                                                 25,126,074                                                                               100.0 %                                                                              73.7 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Total Market Capitalization                                                                                                                                                                                                                                      $           34,090,163                                                                                                                                                                   100.0 %
                                                                     
------------------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
 
                                                                                                               Perpetual Preferred Equity as of June 30, 2017
                                                                                                        (Amounts in thousands except for share and per share amounts)
 
             Series                Redemption                       Outstanding                                Liquidation              Annual               Annual
                                                         Date                                               Shares                                                         Value                                   Dividend                                Dividend
                                                                                                                                                                                                                   Per Share                                Amount
--------------------------------                      ----------                      -----------------------------------------------                        -----------------------------                        --------                        ------------------------
Preferred Shares:                                                                      
  8.29% Series K                                       12/10/26                         745,600                          $ 37,280                          $ 4.145                          $                3,091
                                                                                      -------------------- ------- --------------------                      --- ------ --------------------                                                      ---- --------------------
                                                                                                                                                                                                                                                        
Total Perpetual Preferred Equity                                                                           745,600                                             $ 37,280                                                                              $                3,091
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                       Equity Residential
                                                                                                                                                                      Common Share and Unit
                                                                                                                                                              Weighted Average Amounts Outstanding
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                        YTD Q2 2017                                             YTD Q2 2016                                               Q2 2017                                           Q2 2016
                                                                                     ------------------------------------------------------                     ------------------------------------------------------                     ------------------------------------------------------                     ------------------------------------------
                                                                                                                                                                                                                                                              
Weighted Average Amounts Outstanding for Net Income Purposes:
  Common Shares - basic                                                                                   366,713,268                                                                364,819,546                                                                366,819,902                                                                         365,046,813
  Shares issuable from assumed conversion/vesting of:
             - OP Units                                                                                    12,905,975                                                                 13,792,153                                                                 12,913,250                                                                          13,887,484
             - long-term compensation shares/units                                       2,886,010                            3,400,342                            2,958,466                                     3,130,701
                                                                                     -------------------- ----------- --------------------                      -------------------- ----------- --------------------                      -------------------- ----------- --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                            
  Total Common Shares and Units - diluted                                              382,505,253                          382,012,041                          382,691,618                                   382,064,998
                                                                                     ==================== =========== ====================                      ==================== =========== ====================                      ==================== =========== ====================                      ==================== ====================
                                                                                                                                                                                                                                                                                                                                            
Weighted Average Amounts Outstanding for FFO and Normalized FFO
Purposes:
  Common Shares - basic                                                                                   366,713,268                                                                364,819,546                                                                366,819,902                                                                         365,046,813
  OP Units - basic                                                                      12,905,975                           13,792,153                           12,913,250                                    13,887,484
                                                                                     -------------------- ----------- --------------------                      -------------------- ----------- --------------------                      -------------------- ----------- --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                            
  Total Common Shares and OP Units - basic                                                                379,619,243                                                                378,611,699                                                                379,733,152                                                                         378,934,297
  Shares issuable from assumed conversion/vesting of:
             - long-term compensation shares/units                                       2,886,010                            3,400,342                            2,958,466                                     3,130,701
                                                                                     -------------------- ----------- --------------------                      -------------------- ----------- --------------------                      -------------------- ----------- --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                            
  Total Common Shares and Units - diluted                                              382,505,253                          382,012,041                          382,691,618                                   382,064,998
                                                                                     ==================== =========== ====================                      ==================== =========== ====================                      ==================== =========== ====================                      ==================== ====================
                                                                                                                                                                                                                                                                                                                                            
Period Ending Amounts Outstanding:
  Common Shares (includes Restricted Shares)                                                              367,298,765                                                                365,550,636
  Units (includes OP Units and Restricted Units)                                        13,816,133                           14,706,597  
                                                                                     -------------------- ----------- --------------------                      -------------------- ----------- --------------------
                                                                                                                                                                                                                                                                                                                                            
  Total Shares and Units                                                               381,114,898                          380,257,233  
                                                                                     ==================== =========== ====================                      ==================== =========== ====================
 
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                  Equity Residential
                                                                                     Partially Owned Entities as of June 30, 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 six months ended 6/30/17 (at 100%):
  Operating revenue                                                                                       $  46,278                                                              $         15,888
  Operating expenses                                                                      11,365                                   5,501  
                                                                                       -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                   
  Net operating income                                                                                       34,913                                                                        10,387
  Property management                                                                                         1,630                                                                           425
  General and administrative/other                                                                               29                                                                            90
  Depreciation                                                                            10,395                                   8,048  
                                                                                       -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                   
  Operating income                                                                                           22,859                                                                         1,824
  Interest and other income                                                                                      24                                                                --
  Interest:
     Expense incurred, net                                                                                   (6,638 )                                                                      (4,145 )
     Amortization of deferred financing costs                                               (135 )                                           --  
                                                                                       -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                   
  Income (loss) before income and other taxes and (loss)                                                     16,110                                                                        (2,321 )
  from investments in unconsolidated entities
  Income and other tax (expense) benefit                                                                        (34 )                                                                         (13 )
  (Loss) from investments in unconsolidated entities                                        (761 )                                           --  
                                                                                       -------------------- ------- --------------------                      -------------------- -------------- --------------------
  Net income (loss)                                                                                       $  15,315                                           $         (2,334 )
                                                                                       ==================== ======= ====================                      ==================== ============== ====================
                                                                                                                                                                                                   
Debt - Secured (1):
     EQR Ownership (2)                                                                                    $ 236,823                                                              $         29,085
     Noncontrolling Ownership                                                             64,905                                 116,339  
                                                                                       -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                   
Total (at 100%)                                                                                           $ 301,728                                           $        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 June 30, 2017
                                                                                                                                                                                                                                     (Amounts in thousands except for project and apartment unit
                                                                                                                                                                                                                                     amounts)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
Projects                                                    Location                                   No. of                                                            Total                                                            Total                                                         Total Book                                                          Total                                                    Percentage                                              Percentage                                         Percentage                  Estimated         Estimated
                                                                                                                                            Apartment                                                                            Capital                                                                           Book Value                                                                           Value Not                                                                             Debt                                                                         Completed                                                                   Leased                                                               Occupied                                     Completion                          Stabilization
                                                                                                                                              Units                                                                               Cost                                                                               to Date                                                                            Placed in                                                                                                                                                                                                                                                                                                                                                           Date                                 Date
                                                                                                                                                                                                                                                                                                                                                                                                         Service
----------------------------------------------------                      -----------------                      ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        ------------------------------------------------------------                        -------------------------------------------------                        ------------------------------------------------------                        -------------------------------------                        ----------                      --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Projects Under Development:
----------------------------------------------------
455 Eye Street                                                            Washington, DC                                                               174                                                              $               73,157                                                              $               70,633                                                              $               32,876                                                              $       --                                                                       94 %                                                                          47 %                                                                          23 %                          Q3 2017                              Q2 2018
855 Brannan (formerly 801 Brannan)                                        San Francisco, CA                                                            449                                                                             304,035                                                                             266,251                                                                             172,554                                                                      --                                                                       85 %                                                                          16 %                                                                           9 %                          Q3 2017                              Q1 2019
Helios (formerly 2nd & Pine)                                              Seattle, WA                                                                  398                                                                             215,787                                                                             212,226                                                                              17,566                                                                      --                                                                       98 %                                                                          10 %                                                              --                            Q3 2017                              Q2 2019
Cascade                                                                   Seattle, WA                                                                  477                                                                             176,378                                                                             154,367                                                                              72,173                                                                      --                                                                       89 %                                                                          29 %                                                                          25 %                          Q3 2017                              Q2 2019
100 K Street                                                              Washington, DC                                                               222                                                                              88,023                                                                              30,654                                                                              30,654                                                                      --                                                                       13 %                                                              --                                                                --                            Q4 2018                              Q4 2019
                                                                                                                                                                                                                                  
                                                                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Projects Under Development                                                                                                        1,720                                       857,380                                       734,131                                       325,823                                --  
                                                                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Completed Not Stabilized (1):
----------------------------------------------------
One Henry Adams                                                           San Francisco, CA                                                            241                                                                             172,337                                                                             167,795                                                                      --                                                                      --                                                                                                                                                     80 %                                                                          76 %                         Completed                             Q4 2017
Altitude (formerly Village at Howard Hughes)                              Los Angeles, CA                                                              545                                                                             193,231                                                                             189,798                                                                      --                                                                      --                                                                                                                                                     86 %                                                                          83 %                         Completed                             Q1 2018
The Alton (formerly Millikan)                                             Irvine, CA                                                                   344                                                                             108,681                                                                             106,472                                                                      --                                                                      --                                                                                                                                                     69 %                                                                          67 %                         Completed                             Q1 2018
                                                                                                                                                                                                                                  
                                                                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Projects Completed Not Stabilized                                                                                                 1,130                                       474,249                                       464,065                                --                                --  
                                                                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Completed and Stabilized During the
Quarter:
----------------------------------------------------
340 Fremont (formerly Rincon Hill)                                        San Francisco, CA                                                            348                                                                             290,954                                                                             289,839                                                                      --                                                                      --                                                                                                                                                     98 %                                                                          97 %                         Completed                           Stabilized
                                                                                                                                                                                                                                  
                                                                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Projects Completed and Stabilized During the Quarter                                                                                348                                       290,954                                       289,839                                --                                --  
                                                                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Total Development Projects                                                                                                        3,198                                           $            1,622,583                                           $            1,488,035                                           $              325,823                                           $       --  
                                                                                                                 ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Land Held for Development                                                                                                                              N/A                                                              N/A                                           $              112,474                                           $              112,474                                           $       --  
                                                                                                                 ==============================================================                      ==============================================================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Total Capital                                                                 Q2 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Cost                                                                        NOI
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     ----------------------------------------------------                     ---------------------------------------------------------
Projects Under Development                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              $   857,380                                                              $           (120 )
Completed Not Stabilized                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    474,249                                                                         3,854
Completed and Stabilized During the Quarter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              290,954                                   2,940  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     -------------------- --------- --------------------                      -------------------- -------------- --------------------
  Total Development NOI Contribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    $ 1,622,583                                           $          6,674  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     ==================== ========= ====================                      ==================== ============== ====================
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 Six Months Ended June 30, 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                                                           70,400                                                              $ 41,735                                             $ 593                                          $ 34,680                                             $ 492                                          $ 76,415                                             $ 1,085                                          $ 40,233                                             $ 572                                          $ 46,477                                             $ 660                                          $ 86,710                                             $ 1,232  (8)                    $ 163,125                                              $                2,317
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Non-Same Store Properties (6)                                                    5,689                                                                 2,632                                               486                                             2,106                                               388                                             4,738                                                 874                                               922                                               170                                             1,286                                               237                                             2,208                                                 407                             6,946                                                               1,281
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Other (7)                                            --                             408                                                           624                                                         1,032                                                             129                                                           250                                                           379                                           1,411  
                                                   -------------------- -------------- --------------------                      -------------------- ------ --------------------                                                    -------------------- ------ --------------------                                                    -------------------- ------ --------------------                                                      -------------------- ------ --------------------                                                    -------------------- ------ --------------------                                                    -------------------- ------ --------------------                                     -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Total                                                        76,089                                           $ 44,775                                                                         $ 37,410                                                                         $ 82,185                                                                           $ 41,284                                                                         $ 48,013                                                                         $ 89,297                                                          $ 171,482  
                                                   ==================== ============== ====================                      ==================== ====== ====================                                                    ==================== ====== ====================                                                    ==================== ====== ====================                                                      ==================== ====== ====================                                                    ==================== ====== ====================                                                    ==================== ====== ====================                                     ==================== ======= ====================
(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 $22.0 million spent during the six months ended June 30,
                         2017 on apartment unit renovations/rehabs (primarily kitchens and
                         baths) on approximately 1,650 same store apartment units (equating
                         to approximately $13,300 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 unit renovation/rehab costs 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 5,421
                         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.
 
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                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Normalized EBITDA Reconciliations
                                                                                                                                                                                                                                     (Amounts in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                                     Normalized EBITDA Reconciliations for Page 17
                                                                                                                                                                                                                                                                                                                                          
                                                                                        ---------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                      Trailing Twelve Months                                                                                                                                                           2017                                                                                                                                                                                                              2016
                                                                                        ---------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 June 30, 2017                                                   March 31, 2017                                                                            Q2                                                               Q1                                                                                  Q4                                                               Q3                                                               Q2
                                                                                        ---------------------------------------------------------------                     ---------------------------------------------------------------                     ---------------------------------------------------------------                     ---------------------------------------------------------------                     ---------------------------------------------------------------                     ---------------------------------------------------------------                     ---------------------------------------------------------------
Net income                                                                                                 $              873,974                                                              $              898,214                                                              $              204,160                                                              $              149,941                                                              $              302,381                                                              $              217,492                                                              $              228,400
Interest expense incurred, net                                                                                            379,716                                                                             374,964                                                                              91,224                                                                             106,210                                                                              95,930                                                                              86,352                                                                              86,472
Amortization of deferred financing costs                                                                                    9,277                                                                               9,535                                                                               2,087                                                                               2,296                                                                               2,633                                                                               2,261                                                                               2,345
Depreciation                                                                                                              715,501                                                                             711,732                                                                             179,896                                                                             178,968                                                                             177,407                                                                             179,230                                                                             176,127
Income and other tax expense (benefit) (includes discontinued                                                               1,333                                                                               1,529                                                                                 220                                                                                 262                                                                                 425                                                                                 426                                                                                 416
operations)
                                                                                                                                                                                                                                                               
                                                                                        -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
EBITDA                                                                                                                  1,979,801                                                                           1,995,974                                                                             477,587                                                                             437,677                                                                             578,776                                                                             485,761                                                                             493,760
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Write-off of pursuit costs (other expenses)                                                                                 3,075                                                                               3,359                                                                                 831                                                                                 715                                                                                 713                                                                                 816                                                                               1,115
(Income) loss from investments in unconsolidated entities                                                                  (4,950 )                                                                            (4,832 )                                                                               682                                                                               1,073                                                                               1,045                                                                              (7,750 )                                                                               800
Net (gain) loss on sales of land parcels                                                                                  (23,179 )                                                                           (23,202 )                                                                                23                                                                             (19,193 )                                                                                28                                                                              (4,037 )                                                                    --
(Gain) loss on sale of investment securities and other investments                                                         (3,253 )                                                                           (57,853 )                                                                    --                                                                      --                                                                                   7                                                                              (3,260 )                                                                           (54,600 )
(interest and other income)
Insurance/litigation settlement or reserve income (interest and                                                            (3,070 )                                                                            (3,555 )                                                                              (836 )                                                                              (380 )                                                                              (337 )                                                                            (1,517 )                                                                            (1,321 )
other income)
Insurance/litigation/environmental settlement or reserve expense                                                            4,502                                                                               4,561                                                                                 (56 )                                                                               293                                                                              (5,074 )                                                                             9,339                                                                                   3
(other expenses)
Other                                                                                                                         899                                                                               1,241                                                                                  93                                                                                  96                                                                                 373                                                                                 337                                                                                 435
Net (gain) on sales of discontinued operations                                                                                (28 )                                                                               (28 )                                                                    --                                                                      --                                                                      --                                                                                 (28 )                                                                    --
Net (gain) on sales of real estate properties                                                         (387,653 )                                                       (357,283 )                                                        (87,726 )                                                        (36,707 )                                                       (173,184 )                                                        (90,036 )                                                        (57,356 )
                                                                                        -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Normalized EBITDA                                                                                          $            1,566,144                                           $            1,558,382                                           $              390,598                                           $              383,574                                           $              402,347                                           $              389,625                                           $              382,836  
                                                                                        ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Balance Sheet Items:                                                                                             June 30, 2017                                                                      March 31, 2017
------------------------------------------------------------------                      ------------------------------------------------------------                        ------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Total debt                                                                                                 $            8,964,089                                                              $            8,929,925
Cash and cash equivalents                                                                                                 (37,719 )                                                                           (42,139 )
Mortgage principal reserves/sinking funds                                                              (11,525 )                                                        (61,033 )
                                                                                        -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Net debt                                                                                                   $            8,914,845                                           $            8,826,753  
                                                                                        ==================== ==================== ====================                      ==================== ==================== ====================
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Adjustments from FFO to Normalized FFO
                                                                                                                                                                                                                                     (Amounts in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                       Six Months Ended June 30,                                                                                                                                                                                               Quarter Ended June 30,
                                                                                            ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      2017                                                       2016                                                     Variance                                                                        2017                                                       2016                                                     Variance
                                                                                            ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Impairment                                                                                                     $ --                                           $ --                                           $ --                                           $ --                                           $ --                                           $ --  
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Asset impairment and valuation allowances                                                     --                          --                          --                          --                          --                          --  
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Write-off of pursuit costs (other expenses)                                                            1,546                                   2,563                                  (1,017 )                                                      831                                   1,115                                    (284 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Write-off of pursuit costs                                                                             1,546                                   2,563                                  (1,017 )                                                      831                                   1,115                                    (284 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Prepayment premiums/penalties (interest expense)                                                                         12,258                                                                       112,419                                                                      (100,161 )                                                                         560                                                                --                                                                           560
Write-off of unamortized deferred financing costs (interest expense)                                                        243                                                                         3,251                                                                        (3,008 )                                                                          26                                                                           152                                                                          (126 )
Write-off of unamortized (premiums)/discounts/OCI (interest expense)                                     (99 )                                                    4,494                                  (4,593 )                                                     (488 )                                                      (85 )                                                     (403 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Debt extinguishment (gains) losses, including prepayment penalties,                                   12,402                                 120,164                                (107,762 )                                                       98                                      67                                      31  
preferred share redemptions and non-cash convertible debt discounts
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Net (gain) loss on sales of land parcels                                                                                (19,170 )                                                                     (11,722 )                                                                      (7,448 )                                                                          23                                                                --                                                                            23
(Gain) on sale of investment securities and other investments                                                    --                                                                       (55,156 )                                                                      55,156                                                                --                                                                       (54,600 )                                                                      54,600
(interest and
other income)
Loss (income) from investments in unconsolidated entities -                                   220                                     285                                     (65 )                                                      (81 )                                                      (16 )                                                      (65 )
non-operating assets
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
(Gains) losses on sales of non-operating assets, net of income and                                   (18,950 )                                                  (66,593 )                                                   47,643                                     (58 )                                                  (54,616 )                                                   54,558  
other tax
expense (benefit)
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Insurance/litigation settlement or reserve income (interest and                                                          (1,216 )                                                                      (1,374 )                                                                         158                                                                          (836 )                                                                      (1,321 )                                                                         485
other income)
Insurance/litigation/environmental settlement or reserve expense                                                            237                                                                          (241 )                                                                         478                                                                           (56 )                                                                           3                                                                           (59 )
(other expenses)
Other                                                                                                    189                                   2,129                                  (1,940 )                                                       93                                     435                                    (342 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Other miscellaneous items                                                                               (790 )                                                      514                                  (1,304 )                                                     (799 )                                                     (883 )                                                       84  
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Adjustments from FFO to Normalized FFO                                                                         $         (5,792 )                                                            $         56,648                                           $        (62,440 )                                                            $             72                                           $        (54,317 )                                                            $         54,389  
                                                                                            ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================

Note: See pages 26 through 29 for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.

 
------------------------------------------------------------------
                        Equity Residential
              Normalized FFO Guidance and Assumptions
------------------------------------------------------------------
 
The guidance/projections provided below are based on current
expectations and are forward-looking. All guidance is given on a
Normalized FFO basis. Therefore, certain items excluded from
Normalized FFO, such as debt extinguishment costs/prepayment
penalties and the write-off of pursuit costs, are not included in
the estimates provided on this page. See pages 26 through 29 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)
-----------------------------------------------------------------------------------------------------------
                                                                       
                                        Q3 2017                                 2017
                                                       --------------                      --------------------
Expected Normalized FFO Per Share                      $0.77 to $0.81                         $3.08 to $3.14
                                                                                            
                                      2017 Same Store Assumptions (see Note
                                                     below)
-----------------------------------------------------------------------------------------------------------
                                                                                            
Physical occupancy                                                                                 95.8%
Revenue change                                                                                1.75% to 2.25%
Expense change                                                                                 3.25% to 4.0%
NOI change                                                                                    0.75% to 1.75%

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                                       50 basis points
 
                                                  2017 Debt Assumptions
---------------------------------------------------------------------------------------------------------------------
 
Weighted average debt outstanding                                                        $8.9 billion to $9.1 billion
Weighted average interest rate (reduced for capitalized interest)                                    4.13%
Interest expense, net (on a Normalized FFO basis)                                      $367.6 million to $375.8 million
Capitalized interest                                                                    $24.0 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                                                                        $1.0 million
Income and other tax expense                                                                     $1.0 million
Debt offerings                                                                         $400.0 million to $600.0 million
Equity ATM share offerings                                                                    No amounts budgeted
Preferred share offerings                                                                     No amounts budgeted
Weighted average Common Shares and Units - Diluted                                               382.8 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:
 
                                                             Six Months Ended June 30, 2017                           Quarter Ended June 30, 2017
                                                                                        -----------------------------------------------------                     ----------------------------------------------------
                                                                                                                                                                                                  
  Net Gain on Sales of Real Estate Properties                                                              $    124,433                                                              $    87,726
  Accumulated Depreciation Gain                                                              (47,737 )                                             (34,964 )
                                                                                        -------------------- ---------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                  
  Economic Gain                                                                                            $     76,696                                           $    52,762  
                                                                                        ==================== ========== ====================                      ==================== ========= ====================
 
-----------------------------------------------------------------------------------------------------------------------------
                                                      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 6 and 25 (the
expected guidance/projections provided below are based on current
expectations and are forward-looking):
                                                                   Actual June                                                Actual June                                                  Actual                                                     Actual                                         Expected            Expected
                                                                                       YTD 2017                                                                      YTD 2016                                                                       Q2 2017                                                                       Q2 2016                                                            Q3 2017                                 2017
                                                                                       Per Share                                                  Per Share                                                  Per Share                                                  Per Share                                       Per Share                              Per Share
                                                                         --------------------------------------------------------                      --------------------------------------------------------                      --------------------------------------------------------                      --------------------------------------------------------                      --------------                      --------------------
EPS - Diluted                                                                               $           0.92                                                              $          10.36                                                              $           0.53                                                              $           0.59                                           $0.47 to $0.51                         $1.84 to $1.90
Add: Depreciation expense                                                                               0.93                                                                          0.91                                                                          0.47                                                                          0.46                                                0.49                                   1.91
Less: Net gain on sales                                                             (0.32 )                                                    (9.90 )                                                    (0.23 )                                                    (0.15 )                                             (0.19)                                 (0.66)
                                                                         -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      --------------                      --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                      
FFO per share - Diluted                                                                                 1.53                                                                          1.37                                                                          0.77                                                                          0.90                                            0.77 to 0.81                           3.09 to 3.15
                                                                                                                                                                                                                                                                                                                                                                                                                                      
Asset impairment and valuation allowances                                                     --                                                                --                                                                --                                                                --                                           --                         --
Write-off of pursuit costs                                                                    --                                                                          0.01                                                                --                                                                --                                           --                              0.01
Debt extinguishment (gains) losses, including                                                           0.03                                                                          0.31                                                                --                                                                --                                           --                              0.03
prepayment penalties, preferred share
redemptions and non-cash convertible debt discounts
(Gains) losses on sales of non-operating assets,                                                       (0.05 )                                                                       (0.17 )                                                              --                                                                         (0.14 )                                         --                             (0.05)
net of income and other tax expense (benefit)
Other miscellaneous items                                                  --                          --                          --                          --                        --                         --
                                                                         -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      --------------                      --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                      
Normalized FFO per share - Diluted                                                          $           1.51                                           $           1.52                                           $           0.77                                           $           0.76                        $0.77 to $0.81                         $3.08 to $3.14
                                                                         ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==============                      ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                      

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 10):

                                                                                         Six Months Ended June 30,                                                                                                     Quarter Ended June 30,
                                                          -----------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------
                                                                                  2017                                                  2016                                                                    2017                                                2016
                                                          ----------------------------------------------------                     ----------------------------------------------------                     --------------------------------------------------                     --------------------------------------------------
  Operating income                                                           $   414,921                                                              $   422,643                                                              $ 210,550                                                              $ 206,018
  Adjustments:
    Fee and asset management revenue                                                (361 )                                                                 (3,133 )                                                                 (181 )                                                                 (215 )
    Property management                                                           43,841                                                                   44,486                                                                 21,589                                                                 20,991
    General and administrative                                                    27,799                                                                   35,013                                                                 13,626                                                                 18,296
    Depreciation                                              358,864                            349,012                          179,896                          176,127  
                                                          -------------------- --------- --------------------                      -------------------- --------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
  Total NOI                                                                  $   845,064                                           $   848,021                                           $ 425,480                                           $ 421,217  
                                                          ==================== ========= ====================                      ==================== ========= ====================                      ==================== ======= ====================                      ==================== ======= ====================
  Rental income:
    Same store                                                               $ 1,118,370                                                              $ 1,092,822                                                              $ 571,362                                                              $ 559,564
    Non-same store                                             97,849                            118,282                           40,937                           35,375  
                                                          -------------------- --------- --------------------                      -------------------- --------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
  Total rental income                                                          1,216,219                                                                1,211,104                                                                612,299                                                                594,939
  Operating expenses:
    Same store                                                                   330,252                                                                  317,862                                                                167,047                                                                160,478
    Non-same store                                             40,903                             45,221                           19,772                           13,244  
                                                          -------------------- --------- --------------------                      -------------------- --------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
  Total operating expenses                                                       371,155                                                                  363,083                                                                186,819                                                                173,722
  NOI:
    Same store                                                                   788,118                                                                  774,960                                                                404,315                                                                399,086
    Non-same store                                             56,946                             73,061                           21,165                           22,131  
                                                          -------------------- --------- --------------------                      -------------------- --------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
  Total NOI                                                                  $   845,064                                           $   848,021                                           $ 425,480                                           $ 421,217  
                                                          ==================== ========= ====================                      ==================== ========= ====================                      ==================== ======= ====================                      ==================== ======= ====================
 
---------------------------------------------------------------------------------------------------------------------------
                                                     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=20170725006481r1&sid=cmtx6&distro=nx&

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SOURCE: Equity Residential

Equity Residential 
Marty McKenna, (312) 928-1901


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