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Equity Residential$77.15($1.44)(1.83%)

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 Equity Residential Reports Full Year 2017 Results
   Tuesday, January 30, 2018 4:34:03 PM ET

Equity Residential (EQR ) today reported results for the quarter and year ended December 31, 2017. All per share results are reported as available to common shares/units on a diluted basis. Earnings per Share (EPS) was $0.34, Funds From Operations (FFO) was $0.82 per share and Normalized FFO was $0.83 per share for the fourth quarter of 2017, each as described in further detail below.

"A growing economy resulting in record low unemployment and rising wages combined with extremely favorable demographics continue to provide strong and steady demand for rental housing across our markets," said David J. Neithercut, Equity Residential’s President and CEO. "In 2017, strong occupancy, record retention and favorable renewal pricing helped mitigate the impact of elevated levels of new supply driving growth in same store revenue, net operating income and Normalized FFO to the upper end of our original expectations."



"While 2018 will see no letup in the demand for Equity Residential’s high quality rental housing, our markets will experience another year of elevated levels of new supply, reduced pricing power and slowing revenue growth," Mr. Neithercut continued. "However, the outlook in our coastal markets with high cost of home ownership will soon improve significantly as new apartment supply reduces while favorable demographics, low unemployment and rising incomes continue to produce extraordinarily strong demand and excellent risk adjusted returns to our shareholders."

Highlights

-- Increased same store revenues by 2.2% over the fourth quarter of 2016. Achieved same store Physical Occupancy of 96.0% and a 2.0% increase in Average Rental Rate.

-- For the full year 2017, increased same store revenues by 2.2%, achieved Physical Occupancy of 96.0%, increased Average Rental Rate 2.3% and produced Same Store Turnover of 52.9%, which is the lowest in the Company’s history.

-- Planned annualized increase of 7.2% in the Company’s 2018 common share dividend.

-- Named the 2017 recipient of the NAREIT Residential Leader in the Light award for the Company’s accomplishments in sustainability.

Fourth Quarter 2017

EPS for the fourth quarter of 2017 was $0.34 compared to $0.75 in the fourth quarter of 2016. The difference is due primarily to lower property sale gains in the fourth quarter of 2017, the various adjustment items listed on page 25 of this release and the items described below.

FFO as defined by the National Association of Real Estate Investment Trusts (NAREIT) was $0.82 per share for the fourth quarter of 2017 compared to $0.80 per share in the fourth quarter of 2016. The difference is due primarily to the various adjustment items listed on page 25 of this release and the items described below.

Normalized FFO for the fourth quarter of 2017 was $0.83 per share compared to $0.79 per share in the fourth quarter of 2016. The difference is due primarily to:

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

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

-- A negative impact of approximately $0.01 per share from other items including higher corporate overhead (property management and general and administrative expenses).

The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 27 through 30 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 7, 28 and 29 of this release and the Company has included guidance for Normalized FFO on page 26 and FFO and EPS on page 29 of this release.

Year Ended December 31, 2017

EPS for the year ended December 31, 2017 was $1.63 compared to $11.68 for the full year 2016. The difference is due primarily to $10.16 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 25 of this release and the items described below.

FFO for the year ended December 31, 2017 was $3.15 per share compared to $2.94 per share for the full year 2016. The difference is due primarily to the various adjustment items listed on page 25 of this release and the items described below.

Normalized FFO for the year ended December 31, 2017 was $3.13 per share compared to $3.09 per share for the full year 2016. The difference is due primarily to:

-- A positive impact of approximately $0.08 per share from increased same store NOI;

-- A positive impact of approximately $0.11 per share from Lease-Up NOI;

-- A negative impact of approximately $0.12 per share due primarily to the Company’s significant property sale activity in 2016;

-- A negative impact of approximately $0.02 per share from higher total interest expense, driven primarily by a reduction in capitalized interest offset by interest savings from favorable refinancing activity; and

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

Same Store Results

On a same store fourth quarter to fourth quarter comparison, which includes 72,529 apartment units, revenues increased 2.2%, expenses increased 2.5% and NOI increased 2.1%. Average Rental Rate increased 2.0% and Physical Occupancy remained flat at 96.0%.

On a same store year to year comparison, which includes 70,117 apartment units, revenues increased 2.2%, expenses increased 2.7% and NOI increased 2.0%. Average Rental Rate increased 2.3% and Physical Occupancy remained flat at 96.0%.

Investment Activity

The Company did not acquire any consolidated apartment properties during the fourth quarter of 2017. During the quarter, the Company sold one consolidated apartment property in southern New Jersey, consisting of 170 apartment units, for a sale price of approximately $35.3 million, at a Disposition Yield of 5.1%, generating an Unlevered IRR of 6.8%. Also during the quarter, the Company completed Cascade, a 477-unit apartment development project in Seattle, for a total cost of approximately $176.4 million and an anticipated Development Yield of 6.6%.

During the full year 2017, the Company acquired four consolidated apartment properties, consisting of 947 apartment units, for an aggregate purchase price of approximately $468.0 million at a weighted average Acquisition Capitalization Rate of 4.8%. During the full year 2017, the Company sold five consolidated apartment properties, consisting of 1,194 apartment units, for an aggregate sale price of approximately $355.0 million, at a weighted average Disposition Yield of 5.1%, generating an Unlevered IRR of 12.4%. During 2017, the Company also sold a land parcel located in New York City for a sale price of approximately $33.5 million. During 2017, the Company completed four new apartment development projects, consisting of 1,393 apartment units, at an aggregate total cost of approximately $584.2 million and an anticipated weighted average Development Yield of 6.0%.

First Quarter 2018 Guidance

The Company has established an EPS guidance range of $0.48 to $0.52 for the first quarter of 2018. The difference between the Company’s fourth quarter 2017 EPS of $0.34 and the midpoint of the first quarter 2018 guidance range of $0.50 is due primarily to higher expected gains on property sales and the items described below.

The Company has established an FFO guidance range of $0.69 to $0.73 per share for the first quarter of 2018. The difference between the Company’s fourth quarter 2017 FFO of $0.82 per share and the midpoint of the first quarter 2018 guidance range of $0.71 per share is due primarily to higher expected debt extinguishment costs and the items described below.

The Company has established a Normalized FFO guidance range of $0.74 to $0.78 per share for the first quarter of 2018. The difference between the Company’s fourth quarter 2017 Normalized FFO of $0.83 per share and the midpoint of the first quarter 2018 guidance range of $0.76 per share is due primarily to:

-- A negative impact of approximately $0.04 per share from lower same store NOI;

-- A negative impact of approximately $0.01 per share as a result of the Company’s 2017 and 2018 transaction activity; and

-- A negative impact of approximately $0.02 per share from higher overhead costs (property management and general and administrative expenses), which are typically front-end loaded for the year.

Full Year 2018 Guidance

The Company is providing guidance for its full year 2018 same store operating performance, EPS, FFO per share, Normalized FFO per share, transactions and debt offerings as listed below:

Same Store:                                       
   Physical Occupancy                                                              96.0%
   Revenue change                                                              1.0% to 2.25%
   Expense change                                                              3.5% to 4.5%
   NOI change                                                                  0.0% to 1.5%
                                                                            
EPS                                                                           $1.71 to $1.81
FFO per share                                                                 $3.10 to $3.20
Normalized FFO per share                                                      $3.17 to $3.27
                                                                            
Transactions:
   Consolidated rental acquisitions                                           $500.0 million
   Consolidated rental dispositions                                           $500.0 million
   Acquisition Cap Rate/Disposition Yield spread                              50 basis points
                                                                            
Debt offerings:                                                       $800.0 million to $1.0 billion

The Company anticipates using the proceeds of any debt offerings to repay debt maturing in 2018 (excluding commercial paper) and to prepay a $550.0 million secured debt pool maturing in 2020 that the Company intends to call in 2018 and to prepay a $500.0 million secured debt pool that matures in 2019 but is pre-payable at par in late 2018 (see page 17 of this release for details). The Company anticipates incurring approximately $23.7 million in debt extinguishment costs/prepayment penalties in connection with all of its debt repayment activities in 2018, which will not be included in the Company’s Normalized FFO.

The Company has established an EPS guidance range of $1.71 to $1.81 for the full year 2018. The difference between the Company’s full year 2017 EPS of $1.63 and the midpoint of the full year 2018 guidance range of $1.76 is due primarily to higher expected gains on property sales, higher expected depreciation expense and the items described below.

The Company has established an FFO guidance range of $3.10 to $3.20 per share for the full year 2018. The midpoint of the full year 2018 FFO guidance range of $3.15 per share is identical to the Company’s full year 2017 FFO of $3.15 per share with variances in line items due primarily to higher expected debt extinguishment costs, lower expected gains on sales of non-operating assets and the items described below.

The Company has established a Normalized FFO guidance range of $3.17 to $3.27 per share for the full year 2018. The difference between the Company’s full year 2017 Normalized FFO of $3.13 per share and the midpoint of the full year 2018 guidance range of $3.22 per share is due primarily to:

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

-- A positive impact of approximately $0.09 per share from Lease-Up NOI;

-- A negative impact of approximately $0.01 per share as a result of the Company’s 2017 and 2018 transaction activity;

-- A negative impact of approximately $0.01 per share from higher total interest expense driven primarily by a reduction in capitalized interest and an expected increase in short term rates offset by interest savings from favorable refinancing activity; and

-- A negative impact of approximately $0.02 per share from other items including higher overhead costs (property management and general and administrative expenses).

2018 Dividends

The Company has decided that it will no longer determine its common share dividend as a fixed percentage of estimated Normalized FFO but will instead adopt a more conventional policy based on actual and projected financial conditions, the Company’s actual and projected liquidity and operating results, the Company’s projected cash needs for capital expenditures and other investment activities and such other factors as the Company’s Board of Trustees deems relevant. The Company currently expects to declare a common share dividend for the first quarter of $0.54 per share, an annualized increase of 7.2% over the amount paid in 2017. This policy change is supported by the Company’s strong growth in property operations since the recent economic downturn and a significant reduction in its development activity resulting in a material increase in available cash flow. The first quarter dividend and all future dividends remain subject to the discretion of the Company’s Board of Trustees.

First Quarter 2018 Earnings and Conference Call

Equity Residential expects to announce its first quarter 2018 results on Tuesday, April 24, 2018 and host a conference call to discuss those results at 10:00 a.m. CT on Wednesday, April 25, 2018.

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 305 properties consisting of 78,611 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, January 31, at 10:00 a.m. Central. Please visit the Investor section of the Company’s web site at www.equityapartments.com for the link. A replay of the web cast will be available for two weeks at this site.

                                                                                                                                                                                             Equity Residential
                                                                                                                                                                                    Consolidated Statements of Operations
                                                                                                                                                                                (Amounts in thousands except per share data)
                                                                                                                                                                                                 (Unaudited)
                                                                                                                                                                                                                                      
                                                                                                                   Year Ended December 31,                                                                                                         Quarter Ended December 31,                                                   
                                                                                  --------------------------------------------------------------------------------------------------------------------------------------------------                      --------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                     2017                                          2016                                                             2017                                          2016                    
                                                                                  --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------
REVENUES
   Rental income                                                                                     $            2,470,689                                                              $            2,422,233                                                              $              630,519                                                              $              605,273
   Fee and asset management                                                                          717                                         3,567                                           185                                           216  
                                                                                  -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
      Total revenues                                                                           2,471,406                                     2,425,800                                       630,704                                       605,489  
                                                                                  -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                         
EXPENSES
   Property and maintenance                                                                                         405,281                                                                             406,823                                                                              98,636                                                                              97,135
   Real estate taxes and insurance                                                                                  335,495                                                                             317,387                                                                              82,177                                                                              78,433
   Property management                                                                                               85,493                                                                              82,015                                                                              20,791                                                                              18,012
   General and administrative                                                                                        52,224                                                                              57,840                                                                              11,858                                                                              10,432
   Depreciation                                                                                                     743,749                                                                             705,649                                                                             200,785                                                                             177,407
   Impairment                                                                                      1,693                                --                                         1,693                                --  
                                                                                  -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
      Total expenses                                                                           1,623,935                                     1,569,714                                       415,940                                       381,419  
                                                                                  -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                         
Operating income                                                                                                    847,471                                                                             856,086                                                                             214,764                                                                             224,070
                                                                                                                                                                                                                                                                                                                                                                                         
Interest and other income                                                                                             6,136                                                                              65,773                                                                                 428                                                                                 681
   Other expenses                                                                                                    (5,186 )                                                                           (10,368 )                                                                            (2,026 )                                                                             4,112
   Interest:
      Expense incurred, net                                                                                        (383,890 )                                                                          (482,246 )                                                                           (95,311 )                                                                           (95,930 )
      Amortization of deferred financing costs                                                    (8,526 )                                                        (12,633 )                                                         (2,079 )                                                         (2,633 )
                                                                                  -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Income before income and other taxes, income (loss) from
   investments in unconsolidated entities, net gain (loss)
                                                                                                                                                                                                                                                                                                           
   on sales of real estate properties and land parcels
                                                                                                                    456,005                                                                             416,612                                                                             115,776                                                                             130,300
   and discontinued operations
Income and other tax (expense) benefit                                                                                 (478 )                                                                            (1,613 )                                                                               232                                                                                (424 )
Income (loss) from investments in unconsolidated entities                                                            (3,370 )                                                                             4,801                                                                              (1,217 )                                                                            (1,045 )
Net gain (loss) on sales of real estate properties                                                                  157,057                                                                           4,044,055                                                                              15,296                                                                             173,184
Net gain (loss) on sales of land parcels                                                          19,167                                        15,731                                            (3 )                                                            (28 )
                                                                                  -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Income from continuing operations                                                                                   628,381                                                                           4,479,586                                                                             130,084                                                                             301,987
Discontinued operations, net                                                              --                                           518                                --                                           394  
                                                                                  -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Net income                                                                                                          628,381                                                                           4,480,104                                                                             130,084                                                                             302,381
Net (income) loss attributable to Noncontrolling Interests:
   Operating Partnership                                                                                            (22,604 )                                                                          (171,511 )                                                                            (4,673 )                                                                           (11,069 )
   Partially Owned Properties                                                                     (2,323 )                                                        (16,430 )                                                             31                                       (14,062 )
                                                                                  -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Net income attributable to controlling interests                                                                    603,454                                                                           4,292,163                                                                             125,442                                                                             277,250
Preferred distributions                                                                           (3,091 )                                                         (3,091 )                                                           (773 )                                                           (773 )
                                                                                  -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Net income available to Common Shares                                                                $              600,363                                           $            4,289,072                                           $              124,669                                           $              276,477  
                                                                                  ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                         
Earnings per share - basic:
Income from continuing operations available to Common Shares                                         $                 1.64                                           $                11.75                                           $                 0.34                                           $                 0.76  
                                                                                  ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
Net income available to Common Shares                                                                $                 1.64                                           $                11.75                                           $                 0.34                                           $                 0.76  
                                                                                  ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
Weighted average Common Shares outstanding                                                       366,968                                       365,002                                       367,442                                       365,256  
                                                                                  ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                         
Earnings per share - diluted:
Income from continuing operations available to Common Shares                                         $                 1.63                                           $                11.68                                           $                 0.34                                           $                 0.75  
                                                                                  ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
Net income available to Common Shares                                                                $                 1.63                                           $                11.68                                           $                 0.34                                           $                 0.75  
                                                                                  ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
Weighted average Common Shares outstanding                                                       382,678                                       381,992                                       383,105                                       381,860  
                                                                                  ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                         
Distributions declared per Common Share outstanding                                                  $                2.015                                           $               13.015                                           $              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)
 
                                                                                                                     Year Ended December 31,                                                                                             Quarter Ended December 31,                                             
                                                                                          --------------------------------------------------------------------------------------------------------------------------------------                      --------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          2017                                    2016                                                       2017                                    2016                 
                                                                                          --------------------------------------------------------                      --------------------------------------------------------                      --------------------------------------------------------                      --------------------------------------------------------
Net income                                                                                                   $        628,381                                                              $      4,480,104                                                              $        130,084                                                              $        302,381
Net (income) loss attributable to Noncontrolling
                                                                                                                       (2,323                    )                                                  (16,430                    )                                                       31                                                                       (14,062                    )
   Interests - Partially Owned Properties
Preferred distributions                                                                             (3,091 )                                                   (3,091 )                                                     (773 )                                                     (773 )
                                                                                          -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income available to Common Shares and Units                                                                       622,967                                                                     4,460,583                                                                       129,342                                                                       287,546
                                                                                                                                                                                                                                                                                                                                                                         
Adjustments:
   Depreciation                                                                                                       743,749                                                                       705,649                                                                       200,785                                                                       177,407
   Depreciation - Non-real estate additions                                                               (5,023 )                                                                      (5,224 )                                                                      (1,215 )                                                                      (1,292 )
   Depreciation - Partially Owned Properties                                                              (4,526 )                                                                      (3,805 )                                                                      (2,026 )                                                                        (909 )
   Depreciation - Unconsolidated Properties                                                                4,577                                                                         4,745                                                                         1,147                                                                         1,139
   Net (gain) loss on sales of unconsolidated entities
                                                                                                                          (73                    )                                                   (8,841                    )                                                       (5                    )                                           --
      - operating assets
   Net (gain) loss on sales of real estate properties                                                                (157,057 )                                                                  (4,044,055 )                                                                     (15,296 )                                                                    (173,184 )
   Noncontrolling Interests share of gain (loss) on
                                                                                                                          290                                                                        14,521                                                                           290                                                                        14,521
      sales of real estate properties
   Discontinued operations:
      Net (gain) loss on sales of discontinued operations                                   --                                     (43 )                                           --                          --  
                                                                                          -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
FFO available to Common Shares and Units                                                                            1,204,904                                                                     1,123,530                                                                       313,022                                                                       305,228
                                                                                                                                                                                                                                                                                                                                                                         
Adjustments (see page 25 for additional detail):
   Asset impairment and valuation allowances                                                                            1,693                                                                --                                                                         1,693                                                                --
   Write-off of pursuit costs                                                                                           3,106                                                                         4,092                                                                           777                                                                           713
   Debt extinguishment (gains) losses, including
      prepayment penalties, preferred share redemptions and non-cash
      convertible debt discounts                                                                                       11,789                                                                       121,694                                                                --                                                                         1,418
   (Gains) losses on sales of non-operating assets,
                                                                                                                      (18,884                    )                                                  (73,301                    )                                                      471                                                                           299
      net of income and other tax expense (benefit)
   Other miscellaneous items                                                                        (3,371 )                                                    3,635                                     824                                  (5,038 )
                                                                                          -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Normalized FFO available to Common Shares and Units                                                          $      1,199,237                                           $      1,179,650                                           $        316,787                                           $        302,620  
                                                                                          ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                         
FFO                                                                                                          $      1,207,995                                                              $      1,126,621                                                              $        313,795                                                              $        306,001
Preferred distributions                                                                             (3,091 )                                                   (3,091 )                                                     (773 )                                                     (773 )
                                                                                          -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
FFO available to Common Shares and Units                                                                     $      1,204,904                                           $      1,123,530                                           $        313,022                                           $        305,228  
                                                                                          ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
FFO per share and Unit - basic                                                                               $           3.17                                           $           2.97                                           $           0.82                                           $           0.81  
                                                                                          ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
FFO per share and Unit - diluted                                                                             $           3.15                                           $           2.94                                           $           0.82                                           $           0.80  
                                                                                          ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                         
Normalized FFO                                                                                               $      1,202,328                                                              $      1,182,741                                                              $        317,560                                                              $        303,393
Preferred distributions                                                                             (3,091 )                                                   (3,091 )                                                     (773 )                                                     (773 )
                                                                                          -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Normalized FFO available to Common Shares and Units                                                          $      1,199,237                                           $      1,179,650                                           $        316,787                                           $        302,620  
                                                                                          ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Normalized FFO per share and Unit - basic                                                                    $           3.16                                           $           3.11                                           $           0.83                                           $           0.80  
                                                                                          ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Normalized FFO per share and Unit - diluted                                                                  $           3.13                                           $           3.09                                           $           0.83                                           $           0.79  
                                                                                          ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                         
Weighted average Common Shares and Units outstanding - basic                                       379,870                                 378,829                                 380,325                                 379,081  
                                                                                          ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Weighted average Common Shares and Units outstanding - diluted                                     382,678                                 381,992                                 383,105                                 381,860  
                                                                                          ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================

Note: See page 25 for additional detail regarding the adjustments from FFO to Normalized FFO. See pages 27 through 30 for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.

                                                                                                     Equity Residential
                                                                                                 Consolidated Balance Sheets
                                                                                       (Amounts in thousands except for share amounts)
                                                                                                         (Unaudited)
 
                                                                                     December 31,                                           December 31,
                                                                                                            2017                                                   2016               
                                                                                              ----------------------------------------------------                      ----------------------------------------------------
ASSETS
Investment in real estate
   Land                                                                                                          $  5,996,024                                                              $  5,899,862
   Depreciable property                                                                                            19,768,362                                                                18,730,579
   Projects under development                                                                                         163,547                                                                   637,168
   Land held for development                                                                        98,963                             118,816  
                                                                                              -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Investment in real estate                                                                                          26,026,896                                                                25,386,425
   Accumulated depreciation                                                                     (6,040,378 )                                           (5,360,389 )
                                                                                              -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Investment in real estate, net                                                                                     19,986,518                                                                20,026,036
Cash and cash equivalents                                                                                              50,647                                                                    77,207
Investments in unconsolidated entities                                                                                 58,254                                                                    60,141
Restricted deposits                                                                                                    50,115                                                                   141,881
Other assets                                                                                       425,065                             398,883  
                                                                                              -------------------- ---------- --------------------                      -------------------- ---------- --------------------
         Total assets                                                                                            $ 20,570,599                                           $ 20,704,148  
                                                                                              ==================== ========== ====================                      ==================== ========== ====================
                                                                                                                                                                                                         
LIABILITIES AND EQUITY
Liabilities:
   Mortgage notes payable, net                                                                                   $  3,618,722                                                              $  4,119,181
   Notes, net                                                                                                       5,038,812                                                                 4,848,079
   Line of credit and commercial paper                                                                                299,757                                                                    19,998
   Accounts payable and accrued expenses                                                                              114,766                                                                   147,482
   Accrued interest payable                                                                                            58,035                                                                    60,946
   Other liabilities                                                                                                  341,852                                                                   350,466
   Security deposits                                                                                                   65,009                                                                    62,624
   Distributions payable                                                                           192,828                             192,296  
                                                                                              -------------------- ---------- --------------------                      -------------------- ---------- --------------------
         Total liabilities                                                                       9,729,781                           9,801,072  
                                                                                              -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                                                                                                                                                                         
Commitments and contingencies
                                                                                                                                                                                                         
Redeemable Noncontrolling Interests - Operating Partnership                           366,955                             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 December 31, 2017 and December 31, 2016                                                     37,280                                                                    37,280
      Common Shares of beneficial interest, $0.01 par value;
         1,000,000,000 shares authorized; 368,018,082 shares issued
         and outstanding as of December 31, 2017 and 365,870,924
         shares issued and outstanding as of December 31, 2016                                                          3,680                                                                     3,659
      Paid in capital                                                                                               8,886,586                                                                 8,758,422
      Retained earnings                                                                                             1,403,530                                                                 1,543,626
      Accumulated other comprehensive income (loss)                                                (88,612 )                                             (113,909 )
                                                                                              -------------------- ---------- --------------------                      -------------------- ---------- --------------------
         Total shareholders’ equity                                                     10,242,464                                                                10,229,078
   Noncontrolling Interests:
      Operating Partnership                                                                                           226,691                                                                   221,297
      Partially Owned Properties                                                                     4,708                              10,609  
                                                                                              -------------------- ---------- --------------------                      -------------------- ---------- --------------------
         Total Noncontrolling Interests                                                            231,399                             231,906  
                                                                                              -------------------- ---------- --------------------                      -------------------- ---------- --------------------
         Total equity                                                                           10,473,863                          10,460,984  
                                                                                              -------------------- ---------- --------------------                      -------------------- ---------- --------------------
         Total liabilities and equity                                                                            $ 20,570,599                                           $ 20,704,148  
                                                                                              ==================== ========== ====================                      ==================== ========== ====================
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                             Equity Residential
                                                                                                                              Portfolio Summary
                                                                                                                           As of December 31, 2017
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                % of                                               Average
                                                                                                                       Apartment                                            Stabilized                                                               Rental
             Markets/Metro Areas                                 Properties                           Units                               NOI                                                Rate
-------------------------------------------                      ---------- --------------------                      --------- --------------------                      -------------- --------------------                      ------------------------------------------
                                                                                                                                                                                                                                                         
Los Angeles                                                              71                                              16,160                                                     18.6 %                                                            $                2,454
Orange County                                                            13                                               4,028                                                      4.4 %                                                                             2,142
San Diego                                                                12                            3,385                                   3.9 %                                                          2,288
                                                                 ---------- --------------------                      --------- --------------------                      -------------- --------------------                      -------------------- --------------------
Subtotal - Southern California                              96                                              23,573                                                     26.9 %                                                                             2,375
                                                                                                                                                                                                                                                         
San Francisco                                                            54                                              12,961                                                     19.5 %                                                                             3,089
Washington DC                                                            48                                              15,811                                                     17.3 %                                                                             2,360
New York                                                                 39                                              10,462                                                     16.5 %                                                                             3,758
Boston                                                                   24                                               6,263                                                      9.9 %                                                                             3,001
Seattle                                                                  41                                               8,460                                                      9.9 %                                                                             2,365
Other Markets                                                             1                              136                        -- %                                                          1,157
                                                                 ---------- --------------------                      --------- --------------------                      -------------- --------------------                      -------------------- --------------------
Total                                                                   303                                              77,666                                                    100.0 %                                                                             2,729
                                                                                                                                                                                                                                                         
Unconsolidated Properties                                                 2                              945                        --                                --
                                                                 ---------- --------------------                      --------- --------------------                      -------------- --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                         
Grand Total                                                             305                           78,611                                 100.0 %                                                            $                2,729
                                                                 ========== ====================                      ========= ====================                      ============== ====================                      ==================== ====================

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

 
-----------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 Equity Residential
-----------------------------------------------------------------------------------------------------------------------------------------------
                                                Portfolio as of December 31, 2017
 
                                                   Properties             Apartment Units
                                                                 -------------------- --------------------                      --------------------
                                                                                       
Wholly Owned Properties                                                           283                                                         73,598
Master-Leased Properties - Consolidated                                             3                                                            853
Partially Owned Properties - Consolidated                                          17                                                          3,215
Partially Owned Properties - Unconsolidated                                         2                                         945
                                                                 -------------------- --------------------                      --------------------
                                                                                                                                 
                                                                                  305                                      78,611
                                                                 ==================== ====================                      ====================
                                  
------------------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                  Portfolio Rollforward Q4 2017
                                                                                                                                                                        ($ in thousands)
 
                                                                    Properties                Apartment                          Sales Price                        Disposition      
                                                                                                                                                                            Units                                                                                                                                              Yield
                                                                                                     -------------------- --------------------                      -------------------- --------------------                      ----------------------------------------  --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                             
                                                                 9/30/2017                                            305                                                         78,302
Dispositions:
   Consolidated:
      Rental Properties                                                                                                (1 )                                                         (170 )                                                            $              (35,250 )                                                         (5.1 %)
Completed Developments - Consolidated                                                                                   1                                                            477
Configuration Changes                                                                                      --                                           2  
                                                                                                     -------------------- --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                             
                                                                12/31/2017                                            305                                      78,611  
                                                                                                     ==================== ====================                      ==================== ====================
                                                
------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                 Portfolio Rollforward 2017
                                                                                                                                                      ($ in thousands)
 
                                                                           Properties          Apartment        Purchase Price       Acquisition 
                                                                                                                                                                             Units                                                                                                            Cap Rate
                                                                                                               -------------- --------------------                      -------------- --------------------                      ---------------  --------------------                      ----------- --------------------
                                                                                                                                                                                                                                                                                                         
                                                                               12/31/2016                                 302                                                   77,458
                                                                                                                                                                                                                                                                                                         
Acquisitions:
   Consolidated:
      Rental Properties - Stabilized                                                                           2                                                      437                                                 $  174,028                                                   4.7 %
      Rental Properties - Not Stabilized (A)                                                                   2                                                      510                                                 $  294,022                                                   5.0 %
                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                    Sales Price                           Disposition 
                                                                                                                                                                                                                                                                                                Yield
                                                                                                                                                                                                                                 ---------------  --------------------                      ----------- --------------------
                                                                                                                                                                                                                                                                                                         
Dispositions:
   Consolidated:
      Rental Properties                                                                                                    (5 )                                                 (1,194 )                                               $ (354,950 )                                                (5.1 %)
      Land Parcels                                                                                             --                                           --                                                 $  (33,450 )
Completed Developments - Consolidated                                                                                       4                                                    1,393
Configuration Changes                                                                                          --                                     7  
                                                                                                               -------------- --------------------                      -------------- --------------------
                                                                                                                                                                                                                                                                                                         
                                                                               12/31/2017                                 305                                78,611  
                                                                                                               ============== ====================                      ============== ====================
(A)   The Company acquired two properties in the third quarter of 2017
                         which were in the final stages of initial lease-up and are expected
                         to stabilize in their second year of ownership at a weighted average
                         Acquisition Cap Rate of 5.0%.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                                     Fourth Quarter 2017 vs. Fourth Quarter 2016
                                                                                                                                                                                                                                     Same Store Results/Statistics for 72,529 Same Store Apartment
                                                                                                                                                                                                                                     Units
                                                                                                                                                                                                                                     $ in thousands (except for Average Rental Rate)
 
                                                                                                                             Results                                                                                                                                                                                                             Statistics                                                                                                     
                                          --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                      --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Description                                           Revenues                                      Expenses                                         NOI                                                            Average                                      Physical                                      Turnover                  
                                                                                                                                                                                                                                                                                                                        Rental                                                                             Occupancy
                                                                                                                                                                                                                                                                                                                         Rate
--------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                            
       Q4 2017                                               $              590,387                                                              $              169,647                                                              $              420,740                                                              $                2,709                                                                                96.0 %                                                                              11.1 %
       Q4 2016                                               $              577,809                                           $              165,552                                           $              412,257                                           $                2,656                                          96.0 %                                                           11.2 %
                                          -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
       Change                                                $               12,578                                           $                4,095                                           $                8,483                                           $                   53                                           0.0 %                                                           (0.1 %)
                                          ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
       Change                                                                   2.2 %                                                                               2.5 %                                                                               2.1 %                                                                               2.0 %
                                                 
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                     Fourth Quarter 2017 vs. Third Quarter 2017
                                                                                                                                                                                                                                     Same Store Results/Statistics for 73,822 Same Store Apartment
                                                                                                                                                                                                                                     Units
                                                                                                                                                                                                                                     $ in thousands (except for Average Rental Rate)
 
                                                                                                                             Results                                                                                                                                                                                                             Statistics                                                                                                     
                                          --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                      --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Description                                           Revenues                                      Expenses                                         NOI                                                            Average                                      Physical                                      Turnover                  
                                                                                                                                                                                                                                                                                                                        Rental                                                                             Occupancy
                                                                                                                                                                                                                                                                                                                         Rate
--------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                            
       Q4 2017                                               $              602,878                                                              $              173,089                                                              $              429,789                                                              $                2,720                                                                                96.0 %                                                                              11.1 %
       Q3 2017                                               $              604,414                                           $              178,672                                           $              425,742                                           $                2,725                                          96.2 %                                                           16.7 %
                                          -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
       Change                                                $               (1,536 )                                                            $               (5,583 )                                                            $                4,047                                           $                   (5 )                                                           (0.2 %)                                                          (5.6 %)
                                          ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
       Change                                                                  (0.3 %)                                                                             (3.1 %)                                                                              1.0 %                                                                              (0.2 %)
                                                 
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                 2017 vs. 2016
                                                                                                                                                         Same Store Results/Statistics for 70,117 Same Store Apartment
                                                                                                                                                                                     Units
                                                                                                                                                                $ in thousands (except for Average Rental Rate)
 
                                                                         Results                                                                                                                                   Statistics                                                                     
                                 -------------------------------------------------------------------------------------------------------------------------------------------------                      ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
 Description                        Revenues          Expenses            NOI                              Average              Physical                      Turnover          
                                                                                                                                                                                                          Rental                                                     Occupancy
                                                                                                                                                                                                           Rate
-----------                      -------------  --------------------                      -----------  --------------------                      -----------  --------------------                      --------  --------------------                      ------------------------  --------------------                      ------------------------  --------------------
                                                                                                                                                                                                                                                                                                              
    2017                            $ 2,248,564                                              $ 656,321                                            $ 1,592,243                                             $ 2,670                                                                96.0 %                                                              52.9 %
    2016                            $ 2,200,094                           $ 639,342                         $ 1,560,752                          $ 2,611                          96.0 %                                           54.7 %
                                 ---- --------- --------------------                      ---- ------- --------------------                      -- --------- --------------------                      --- ----- --------------------                      -------------------- ---- --------------------                      -------------------- ---- --------------------
                                                                                                                                                                                                                                                                                                                                                           
   Change                           $    48,470                           $  16,979                         $    31,491                          $    59                           0.0 %                                           (1.8 %)
                                 ==== ========= ====================                      ==== ======= ====================                      == ========= ====================                      === ===== ====================                      ==================== ==== ====================                      ==================== ==== ====================
                                                                                                                                                                                                                                                                                                                                                           
   Change                                   2.2 %                                                  2.7 %                                                  2.0 %                                               2.3 %

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 29 for reconciliations from operating income.

 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Fourth Quarter 2017 vs. Fourth Quarter 2016
                                                                                                                                                                                                                                     Same Store Results/Statistics by Market
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Increase (Decrease) from Prior Year’s Quarter                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
             Markets/Metro Areas                                                  Apartment                                                         Q4 2017                                                          Q4 2017                                                          Q4 2017                                                          Q4 2017                                                         Revenues                                      Expenses                                         NOI                                         Average                                      Physical                                      Turnover                  
                                                                                    Units                                                                               % of                                                                               Average                                                                            Weighted                                                                            Turnover                                                                                                                                                                                                                                                                                                                                         Rental                                                                             Occupancy
                                                                                                                                                                       Actual                                                                              Rental                                                                              Average                                                                                                                                                                                                                                                                                                                                                                                                                              Rate
                                                                                                                                                                         NOI                                                                                Rate                                                                              Physical
                                                                                                                                                                                                                                                                                                                                             Occupancy %
-------------------------------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Los Angeles                                                                                         14,432                                                                                17.6 %                                                            $                2,445                                                                                95.9 %                                                                              13.0 %                                                                               3.2 %                                                                               0.7 %                                                                               4.1 %                                                                               3.4 %                                                                               0.0 %                                                                              (0.5 %)
Orange County                                                                                        3,684                                                                                 4.1 %                                                                             2,109                                                                                96.1 %                                                                              11.0 %                                                                               4.0 %                                                                               2.3 %                                                                               4.5 %                                                                               4.2 %                                                                              (0.1 %)                                                                             (0.7 %)
San Diego                                                                         3,385                                           4.0 %                                                          2,288                                          96.0 %                                                           14.1 %                                                            4.6 %                                                            3.8 %                                                            4.8 %                                                            4.7 %                                                           (0.1 %)                                                          (0.1 %)
                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Subtotal - Southern California                                                         21,501                                                                                25.7 %                                                                             2,363                                                                                95.9 %                                                                              12.8 %                                                                               3.5 %                                                                               1.4 %                                                                               4.3 %                                                                               3.7 %                                                                              (0.1 %)                                                                             (0.5 %)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
New York                                                                                            10,462                                                                                18.8 %                                                                             3,758                                                                                96.4 %                                                                               7.6 %                                                                               0.4 %                                                                               0.9 %                                                                               0.2 %                                                                              (0.3 %)                                                                              0.4 %                                                                              (0.9 %)
San Francisco                                                                                       11,848                                                                                18.6 %                                                                             3,007                                                                                95.9 %                                                                              11.7 %                                                                               1.9 %                                                                               4.7 %                                                                               1.1 %                                                                               2.1 %                                                                              (0.1 %)                                                                              0.6 %
Washington DC                                                                                       15,475                                                                                18.1 %                                                                             2,356                                                                                96.5 %                                                                               9.8 %                                                                               1.2 %                                                                               2.3 %                                                                               0.8 %                                                                               0.7 %                                                                               0.5 %                                                                              (0.5 %)
Boston                                                                                               6,009                                                                                10.1 %                                                                             2,981                                                                                95.8 %                                                                              10.3 %                                                                               2.3 %                                                                               1.7 %                                                                               2.4 %                                                                               1.4 %                                                                               0.1 %                                                                               0.2 %
Seattle                                                                                              7,098                                                                                 8.6 %                                                                             2,285                                                                                95.1 %                                                                              13.5 %                                                                               5.4 %                                                                               8.6 %                                                                               4.3 %                                                                               6.1 %                                                                              (0.5 %)                                                                              1.8 %
Other Markets                                                                                          136                                                                                 0.1 %                                                                             1,157                                                                                96.1 %                                                                              11.8 %                                                                              (0.1 %)                                                                              9.8 %                                                                              (4.4 %)                                                                              1.0 %                                                                              (0.8 %)                                                                             (2.9 %)
                                                                                                                                                                                                                                                                                                                                                    
                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Total                                                                            72,529                                         100.0 %                                                            $                2,709                                          96.0 %                                                           11.1 %                                                            2.2 %                                                            2.5 %                                                            2.1 %                                                            2.0 %                                                            0.0 %                                                           (0.1 %)
                                                                 ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Fourth Quarter 2017 vs. Third Quarter 2017
                                                                                                                                                                                                                                     Same Store Results/Statistics by Market
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Increase (Decrease) from Prior Quarter                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
             Markets/Metro Areas                                                  Apartment                                                         Q4 2017                                                          Q4 2017                                                          Q4 2017                                                          Q4 2017                                                         Revenues                                      Expenses                                         NOI                                         Average                                      Physical                                      Turnover                  
                                                                                    Units                                                                               % of                                                                               Average                                                                            Weighted                                                                            Turnover                                                                                                                                                                                                                                                                                                                                         Rental                                                                             Occupancy
                                                                                                                                                                       Actual                                                                              Rental                                                                              Average                                                                                                                                                                                                                                                                                                                                                                                                                              Rate
                                                                                                                                                                         NOI                                                                                Rate                                                                              Physical
                                                                                                                                                                                                                                                                                                                                             Occupancy %
-------------------------------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Los Angeles                                                                                         14,717                                                                                17.6 %                                                            $                2,446                                                                                95.8 %                                                                              13.1 %                                                                              (0.6 %)                                                                              2.4 %                                                                              (1.7 %)                                                                              0.2 %                                                                              (0.7 %)                                                                             (5.1 %)
Orange County                                                                                        3,684                                                                                 4.0 %                                                                             2,109                                                                                96.1 %                                                                              11.0 %                                                                               0.1 %                                                                              (5.7 %)                                                                              1.9 %                                                                               0.4 %                                                                              (0.3 %)                                                                             (5.8 %)
San Diego                                                                         3,385                                           3.9 %                                                          2,288                                          96.0 %                                                           14.1 %                                                            0.1 %                                                           (3.1 %)                                                           1.2 %                                                            0.8 %                                                           (0.7 %)                                                          (4.6 %)
                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Subtotal - Southern California                                                         21,786                                                                                25.5 %                                                                             2,365                                                                                95.9 %                                                                              12.9 %                                                                              (0.4 %)                                                                              0.5 %                                                                              (0.7 %)                                                                              0.3 %                                                                              (0.6 %)                                                                             (5.1 %)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
San Francisco                                                                                       12,720                                                                                19.8 %                                                                             3,059                                                                                95.9 %                                                                              11.6 %                                                                               0.3 %                                                                              (2.9 %)                                                                              1.5 %                                                                               0.1 %                                                                               0.2 %                                                                              (5.9 %)
New York                                                                                            10,462                                                                                18.4 %                                                                             3,758                                                                                96.4 %                                                                               7.6 %                                                                              (1.1 %)                                                                             (3.9 %)                                                                              0.6 %                                                                              (0.8 %)                                                                              0.0 %                                                                              (5.4 %)
Washington DC                                                                                       15,475                                                                                17.7 %                                                                             2,356                                                                                96.5 %                                                                               9.8 %                                                                              (0.9 %)                                                                             (5.3 %)                                                                              1.0 %                                                                              (1.1 %)                                                                              0.2 %                                                                              (6.6 %)
Boston                                                                                               6,009                                                                                 9.9 %                                                                             2,981                                                                                95.8 %                                                                              10.3 %                                                                               1.9 %                                                                              (4.5 %)                                                                              4.5 %                                                                               0.5 %                                                                               0.0 %                                                                              (8.0 %)
Seattle                                                                                              7,234                                                                                 8.6 %                                                                             2,284                                                                                95.0 %                                                                              13.6 %                                                                              (0.2 %)                                                                             (4.4 %)                                                                              1.4 %                                                                               0.2 %                                                                              (0.4 %)                                                                             (2.8 %)
Other Markets                                                                                          136                                                                                 0.1 %                                                                             1,157                                                                                96.1 %                                                                              11.8 %                                                                              (0.9 %)                                                                             (3.4 %)                                                                              0.4 %                                                                               0.2 %                                                                              (1.0 %)                                                                              1.5 %
                                                                                                                                                                                                                                                                                                                                                    
                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Total                                                                            73,822                                         100.0 %                                                            $                2,720                                          96.0 %                                                           11.1 %                                                           (0.3 %)                                                          (3.1 %)                                                           1.0 %                                                           (0.2 %)                                                          (0.2 %)                                                          (5.6 %)
                                                                 ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     2017 vs. 2016
                                                                                                                                                                                                                                     Same Store Results/Statistics by Market
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Increase (Decrease) from Prior Year                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
             Markets/Metro Areas                                                  Apartment                                                          2017                                                             2017                                                             2017                                                             2017                                                           Revenues                                      Expenses                                         NOI                                         Average                                      Physical                                      Turnover                  
                                                                                    Units                                                                               % of                                                                               Average                                                                            Weighted                                                                            Turnover                                                                                                                                                                                                                                                                                                                                         Rental                                                                             Occupancy
                                                                                                                                                                       Actual                                                                              Rental                                                                              Average                                                                                                                                                                                                                                                                                                                                                                                                                              Rate
                                                                                                                                                                         NOI                                                                                Rate                                                                              Physical
                                                                                                                                                                                                                                                                                                                                             Occupancy %
-------------------------------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Los Angeles                                                                                         14,040                                                                                17.9 %                                                            $                2,419                                                                                96.0 %                                                                              59.1 %                                                                               3.6 %                                                                               0.7 %                                                                               4.8 %                                                                               3.8 %                                                                              (0.1 %)                                                                             (2.0 %)
Orange County                                                                                        3,684                                                                                 4.2 %                                                                             2,076                                                                                96.2 %                                                                              52.2 %                                                                               4.7 %                                                                               4.6 %                                                                               4.7 %                                                                               4.5 %                                                                               0.1 %                                                                              (1.5 %)
San Diego                                                                         3,385                                           4.1 %                                                          2,249                                          96.3 %                                                           64.2 %                                                            4.6 %                                                            3.2 %                                                            5.1 %                                                            4.5 %                                                            0.1 %                                                           (0.1 %)
                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Subtotal - Southern California                                                         21,109                                                                                26.2 %                                                                             2,332                                                                                96.1 %                                                                              58.7 %                                                                               3.9 %                                                                               1.6 %                                                                               4.9 %                                                                               4.1 %                                                                               0.0 %                                                                              (1.7 %)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Washington DC                                                                                       15,475                                                                                18.9 %                                                                             2,362                                                                                96.1 %                                                                              50.3 %                                                                               1.3 %                                                                               2.8 %                                                                               0.7 %                                                                               1.4 %                                                                               0.1 %                                                                              (0.4 %)
New York                                                                                             9,837                                                                                18.3 %                                                                             3,706                                                                                96.2 %                                                                              40.4 %                                                                               0.1 %                                                                               3.7 %                                                                              (1.8 %)                                                                             (0.1 %)                                                                             (0.1 %)                                                                             (1.5 %)
San Francisco                                                                                       11,021                                                                                18.0 %                                                                             2,942                                                                                95.9 %                                                                              53.6 %                                                                               2.0 %                                                                               1.5 %                                                                               2.1 %                                                                               2.2 %                                                                              (0.2 %)                                                                             (5.5 %)
Boston                                                                                               6,009                                                                                10.4 %                                                                             2,952                                                                                95.8 %                                                                              52.2 %                                                                               1.6 %                                                                               0.8 %                                                                               2.0 %                                                                               1.2 %                                                                               0.3 %                                                                              (3.1 %)
Seattle                                                                                              6,530                                                                                 8.1 %                                                                             2,241                                                                                95.6 %                                                                              59.2 %                                                                               5.6 %                                                                               6.8 %                                                                               5.2 %                                                                               6.0 %                                                                               0.0 %                                                                               1.3 %
Other Markets                                                                                          136                                                                                 0.1 %                                                                             1,150                                                                                97.6 %                                                                              44.9 %                                                                               2.3 %                                                                              14.9 %                                                                              (3.5 %)                                                                              2.9 %                                                                              (0.4 %)                                                                             (9.5 %)
                                                                                                                                                                                                                                                                                                                                                    
                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Total                                                                            70,117                                         100.0 %                                                            $                2,670                                          96.0 %                                                           52.9 %                                                            2.2 %                                                            2.7 %                                                            2.0 %                                                            2.3 %                                                            0.0 %                                                           (1.8 %)
                                                                 ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                        Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                            Fourth Quarter 2017 vs. Fourth Quarter 2016
                                                                                                                                                                   Same Store Operating Expenses for 72,529 Same Store Apartment
                                                                                                                                                                                               Units
                                                                                                                                                                                          $ in thousands
                                                  Actual                           Actual                             $                              %                         % of Actual         
                                                                     Q4 2017                                                                Q4 2016                                                               Change                                                               Change                                                               Q4 2017
                                                                                                                                                                                                                                                                                                                                                           Operating
                                                                                                                                                                                                                                                                                                                                                           Expenses
                                                          ---------------------------  --------------------                      ---------------------------  --------------------                      -------------------------  --------------------                      -------------------------  --------------------                      -------------------------  --------------------
                                                                                                                                                                                                                                                                                          
Real estate taxes                                                            $  73,064                                                              $  70,011                                                              $ 3,053                                                                  4.4 %                                                               43.1 %
On-site payroll (1)                                                             37,720                                                                 36,241                                                                1,479                                                                  4.1 %                                                               22.2 %
Utilities (2)                                                                   22,897                                                                 22,460                                                                  437                                                                  1.9 %                                                               13.5 %
Repairs and maintenance (3)                                                     20,327                                                                 20,185                                                                  142                                                                  0.7 %                                                               12.0 %
Insurance                                                                        4,367                                                                  4,561                                                                 (194 )                                                               (4.3 %)                                                               2.6 %
Leasing and advertising                                                          2,364                                                                  2,666                                                                 (302 )                                                              (11.3 %)                                                               1.4 %
Other on-site operating expenses (4)                          8,908                            9,428                           (520 )                                            (5.5 %)                                            5.2 %
                                                          -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------
                                                                                                                                                                                                                                                                                                                                                                              
Same store operating expenses                                                $ 169,647                                           $ 165,552                                           $ 4,095                            2.5 %                                           100.0 %
                                                          ==================== ======= ====================                      ==================== ======= ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================
                                                                                                                                                                                           2017 vs. 2016
                                                                                                                                                                   Same Store Operating Expenses for 70,117 Same Store Apartment
                                                                                                                                                                                               Units
                                                                                                                                                                                          $ in thousands
 
                                                  Actual                           Actual                              $                              %                        % of Actual         
                                                                      2017                                                                   2016                                                                  Change                                                               Change                                                               2017
                                                                                                                                                                                                                                                                                                                                                           Operating
                                                                                                                                                                                                                                                                                                                                                           Expenses
                                                          ---------------------------  --------------------                      ---------------------------  --------------------                      --------------------------  --------------------                      ------------------------  --------------------                      -------------------------  --------------------
                                                                                                                                                                                                                                                                                          
Real estate taxes                                                            $ 276,762                                                              $ 268,084                                                              $  8,678                                                                 3.2 %                                                               42.2 %
On-site payroll (1)                                                            148,781                                                                142,248                                                                 6,533                                                                 4.6 %                                                               22.7 %
Utilities (2)                                                                   89,938                                                                 88,159                                                                 1,779                                                                 2.0 %                                                               13.7 %
Repairs and maintenance (3)                                                     83,683                                                                 82,378                                                                 1,305                                                                 1.6 %                                                               12.7 %
Insurance                                                                       16,683                                                                 17,345                                                                  (662 )                                                              (3.8 %)                                                               2.5 %
Leasing and advertising                                                          9,282                                                                 10,118                                                                  (836 )                                                              (8.3 %)                                                               1.4 %
Other on-site operating expenses (4)                         31,192                           31,010                             182                           0.6 %                                             4.8 %
                                                          -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------ --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------
                                                                                                                                                                                                                                                                                                                                                                              
Same store operating expenses                                                $ 656,321                                           $ 639,342                                           $ 16,979                           2.7 %                                           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 December 31, 2017
                                                                                                                                                                    ($ in thousands)
 
                                                                         Amounts (1)                             % of Total                          Weighted                              Weighted
                                                                                                                                                                                                                                                     Average                                                                     Average
                                                                                                                                                                                                                                                    Rates (1)                                                                  Maturities
                                                                                                                                                                                                                                                                                                                                 (years)
                                                                               ----------------------------------  --------------------                      ----------------------------------  --------------------                      ------------------------  --------------------                      ----------------------------------------
                                                                                                                                                                                                                                                       
Secured                                                                                           $      3,618,722                                                                          40.4 %                                                              4.33 %                                                                               5.6
Unsecured                                                                             5,338,569                                    59.6 %                                           4.17 %                                                           10.6
                                                                               -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ---- --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                     
      Total                                                                                       $      8,957,291                                   100.0 %                                           4.24 %                                                            8.6
                                                                               ==================== ============== ====================                      ==================== ============== ====================                      ==================== ==== ====================                      ==================== ====================
Fixed Rate Debt:
   Secured - Conventional                                                            $      2,982,344                                                                          33.3 %                                                              4.90 %                                                                               4.0
   Unsecured - Public                                                    4,591,373                                    51.3 %                                           4.61 %                                                           12.2
                                                                               -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ---- --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                     
      Fixed Rate Debt                                                                 7,573,717                                    84.6 %                                           4.73 %                                                            9.0
                                                                               -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ---- --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                     
Floating Rate Debt:
   Secured - Conventional                                                                       6,948                                                                           0.1 %                                                              1.05 %                                                                              12.2
   Secured - Tax Exempt                                                                       629,430                                                                           7.0 %                                                              1.56 %                                                                              12.2
   Unsecured - Public (2)                                                                     447,439                                                                           5.0 %                                                              1.82 %                                                                               1.5
   Unsecured - Revolving Credit Facility (3)                                           --                                                                --                                                                2.00 %                                                                               3.9
   Unsecured - Commercial Paper Program (4)                                299,757                                     3.3 %                                           1.41 %                                                 --
                                                                               -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ---- --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                     
      Floating Rate Debt                                                              1,383,574                                    15.4 %                                           1.62 %                                                            6.3
                                                                               -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ---- --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                     
Total                                                                                             $      8,957,291                                   100.0 %                                           4.24 %                                                            8.6
                                                                               ==================== ============== ====================                      ==================== ============== ====================                      ==================== ==== ====================                      ==================== ====================
(1)   Net of the effect of any derivative instruments. Weighted average
                         rates are for the year ended December 31, 2017.
(2)                      Fair value interest rate swaps convert the $450.0 million 2.375%
                         notes due July 1, 2019 to a floating interest rate of 90-Day LIBOR
                         plus 0.61%.
(3)                      The Company’s $2.0 billion unsecured revolving credit facility
                         matures January 10, 2022. The interest rate on advances under the
                         credit facility will generally be LIBOR plus a spread (currently
                         0.825%), 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 December 31, 2017, there was
                         approximately $1.69 billion available on the Company’s unsecured
                         revolving credit facility (net of $6.6 million which was
                         restricted/dedicated to support letters of credit and net of $300.0
                         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
                         1.41% for the year ended December 31, 2017 and a weighted average
                         maturity of 18 days as of December 31, 2017.

Note: The Company capitalized interest of approximately $26.3 million and $51.5 million during the years ended December 31, 2017 and 2016, respectively. The Company capitalized interest of approximately $3.1 million and $9.8 million during the quarters ended December 31, 2017 and 2016, respectively.

 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                    Debt Maturity Schedule as of December 31, 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)
---------------------------------------------------                      -----------------------------  --------------------                          -----------------------------  --------------------                          -----------------------------  --------------------                      -------------------------  --------------------                      --------------------------  --------------------                      ---------------------------  --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                  
                        2018                                                                $    49,734                                                                  $   397,235                      (2)                                         $   446,969                                                                  4.9 %                                                                5.55 %                                                                 2.17 %
                        2019                                                                    506,731                      (3)                                             468,603                                                                      975,334                                                                 10.8 %                                                                5.17 %                                                                 3.62 %
                        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                                                                          400                                                                      265,741                                                                  2.9 %                                                                3.26 %                                                                 3.26 %
                        2023                                                                  1,326,800                                                                        4,400                                                                    1,331,200                                                                 14.7 %                                                                3.74 %                                                                 3.73 %
                        2024                                                                      1,272                                                                       10,500                                                                       11,772                                                                  0.1 %                                                                4.79 %                                                                 2.07 %
                        2025                                                                    451,334                                                                       12,800                                                                      464,134                                                                  5.1 %                                                                3.38 %                                                                 3.33 %
                        2026                                                                    593,424                                                                       14,000                                                                      607,424                                                                  6.7 %                                                                3.59 %                                                                 3.54 %
                        2027                                                                    401,468                                                                       15,200                                                                      416,668                                                                  4.6 %                                                                3.26 %                                                                 3.20 %
                        2028+                                              1,424,969                                520,065                              1,945,034                           21.5 %                                             4.41 %                                              3.67 %
                                                                         -------------------- --------- --------------------                          -------------------- --------- --------------------                          -------------------- --------- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ------- --------------------
                      Subtotal                                                                7,627,171                                                                    1,443,903                                                                    9,071,074                                                                100.0 %                                                                4.48 %                                                                 3.97 %
 Deferred Financing Costs and Unamortized (Discount)                         (53,454 )                                                 (60,329 )                                                (113,783 )                                                                N/A                                                N/A                                                 N/A  
                                                                         -------------------- --------- --------------------                          -------------------- --------- --------------------                          -------------------- --------- --------------------                      -----------------------------------------------                      ------------------------------------------------                      -------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                        Total                                                               $ 7,573,717                                               $ 1,383,574                                               $ 8,957,291                          100.0 %                                             4.48 %                                              3.97 %
                                                                         ==================== ========= ====================                          ==================== ========= ====================                          ==================== ========= ====================                      ==================== ===== ====================                      ==================== ====== ====================                      ==================== ======= ====================
(1)   Net of the effect of any derivative instruments. Weighted average
                         rates are as of December 31, 2017.
(2)                      Includes $300.0 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. The Company currently intends to prepay this mortgage loan on
                         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.
                         The Company currently intends to prepay this mortgage loan on
                         January 31, 2018 and incur approximately $22.5 million in debt
                         extinguishment costs/prepayment penalties. Also includes a $500.0
                         million 5.78% mortgage loan with a maturity date of July 1, 2020
                         that can be prepaid at par beginning July 1, 2019.
 
-----------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                    Equity Residential
-----------------------------------------------------------------------------------------------------------------------------------------------------
                                                         Selected Unsecured Public Debt Covenants
 
                                                            December 31,         September 30,
                                                                                   2017                                    2017
                                                                               ------------ --------------------                      --------------------
Total Debt to Adjusted Total Assets (not to exceed 60%)                            34.6%                                                      34.8%
                                                                                                                                       
Secured Debt to Adjusted Total Assets (not to exceed 40%)                          14.0%                                                      14.0%
                                                                                                                                       
Consolidated Income Available for Debt Service to
  Maximum Annual Service Charges
  (must be at least 1.5 to 1)                                                          4.17                                                           4.07
                                                                                                                                       
Total Unsecured Assets to Unsecured Debt
  (must be at least 150%)                                                            381.0%                                                         377.6%

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

 
--------------------------------------------------------------------------------------------------------------------------------------
 
                                                        Selected Credit Ratios
 
                                       December 31,         September 30,
                                                              2017                                    2017
                                                          ------------ --------------------                      --------------------
Total debt to Normalized EBITDA                               5.62x                                                      5.70x
                                                                                                                  
Net debt to Normalized EBITDA                                 5.59x                                                      5.67x
                                                                                                                  
Unencumbered NOI as a % of total NOI                          74.2%                                                      74.0%

Note: See page 24 for the Normalized EBITDA reconciliations.

 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                  Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                             Capital Structure as of December 31, 2017
                                                                                                                                                                                                          (Amounts in thousands except for share/unit and per share amounts)
 
   Secured Debt                                                                                                                                                    $            3,618,722                       40.4 %                       
   Unsecured Debt                                                                                                                                                                                                                                           5,338,569                                          59.6 %
                                                                                                                                                                                                                                               -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
Total Debt                                                                                                                                                                                                                                                                     8,957,291                                                                               100.0 %                                                                              26.9 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
   Common Shares (includes Restricted Shares)                                                        368,018,082                                                                                96.4 %
   Units (includes OP Units and Restricted Units)                                  13,768,438                                           3.6 %
                                                                       -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
Total Shares and Units                                                                               381,786,520                                                                               100.0 %
Common Share Price at December 31, 2017                                                   $                63.77  
                                                                       -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                              24,346,526                                                                                99.8 %
Perpetual Preferred Equity (see below)                                                                                                                                                                                                                         37,280                                           0.2 %
                                                                                                                                                                                                                                               -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
Total Equity                                                                                                                                                                                                                                                                  24,383,806                                                                               100.0 %                                                                              73.1 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
Total Market Capitalization                                                                                                                                                                                                                                       $           33,341,097                                                                                                                                                                   100.0 %
                                                                      
------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                               Perpetual Preferred Equity as of December 31, 2017
                                                                                                                   (Amounts in thousands except for share and per share amounts)
 
             Series                 Call Date           Outstanding              Liquidation       Annual                 Annual
                                                                                                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
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                2017                                 2016                                Q4 2017                                   Q4 2016
                                                                                     -----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------                      ------------------------------------------
                                                                                                                                                                                                     
Weighted Average Amounts Outstanding for Net Income Purposes:
   Common Shares - basic                                                                                  366,968,358                                                                365,002,012                                                                367,442,352                                                                         365,255,902
   Shares issuable from assumed conversion/vesting of:
            - OP Units                                                                                     12,901,219                                                                 13,827,099                                                                 12,882,935                                                                          13,824,671
            - long-term compensation shares/units                                        2,808,917                            3,163,201                            2,780,028                                     2,779,631
                                                                                     -------------------- ----------- --------------------                      -------------------- ----------- --------------------                      -------------------- ----------- --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                            
   Total Common Shares and Units - diluted                                             382,678,494                          381,992,312                          383,105,315                                   381,860,204
                                                                                     ==================== =========== ====================                      ==================== =========== ====================                      ==================== =========== ====================                      ==================== ====================
                                                                                                                                                                                                                                                                                                                                            
Weighted Average Amounts Outstanding for FFO and Normalized FFO
Purposes:
   Common Shares - basic                                                                                  366,968,358                                                                365,002,012                                                                367,442,352                                                                         365,255,902
   OP Units - basic                                                                     12,901,219                           13,827,099                           12,882,935                                    13,824,671
                                                                                     -------------------- ----------- --------------------                      -------------------- ----------- --------------------                      -------------------- ----------- --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                            
   Total Common Shares and OP Units - basic                                                               379,869,577                                                                378,829,111                                                                380,325,287                                                                         379,080,573
   Shares issuable from assumed conversion/vesting of:
            - long-term compensation shares/units                                        2,808,917                            3,163,201                            2,780,028                                     2,779,631
                                                                                     -------------------- ----------- --------------------                      -------------------- ----------- --------------------                      -------------------- ----------- --------------------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                            
   Total Common Shares and Units - diluted                                             382,678,494                          381,992,312                          383,105,315                                   381,860,204
                                                                                     ==================== =========== ====================                      ==================== =========== ====================                      ==================== =========== ====================                      ==================== ====================
                                                                                                                                                                                                                                                                                                                                            
Period Ending Amounts Outstanding:
   Common Shares (includes Restricted Shares)                                                             368,018,082                                                                365,870,924
   Units (includes OP Units and Restricted Units)                                       13,768,438                           14,626,075  
                                                                                     -------------------- ----------- --------------------                      -------------------- ----------- --------------------
                                                                                                                                                                                                                                                                                                                                            
   Total Shares and Units                                                              381,786,520                          380,496,999  
                                                                                     ==================== =========== ====================                      ==================== =========== ====================
 
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                  Equity Residential
                                                                                   Partially Owned Entities as of December 31, 2017
                                                                             (Amounts in thousands except for property and apartment unit
                                                                                                       amounts)
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           Consolidated                        Unconsolidated            
                                                                                      -------------------------------------------------                      --------------------------------------------------------
                                                                                                                                                                                                  
Total properties                                                                             17                                       2  
                                                                                      -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                  
Total apartment units                                                                     3,215                                     945  
                                                                                      -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                  
Operating information for the year ended 12/31/17 (at 100%):
   Operating revenue                                                                                     $  93,472                                                              $         32,141
   Operating expenses                                                                    22,412                                  11,399  
                                                                                      -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                  
   Net operating income                                                                                     71,060                                                                        20,742
   Property management                                                                                       3,401                                                                           859
   General and administrative                                                                                  279                                                                             3
   Depreciation                                                                          25,505                                  16,134  
                                                                                      -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                  
   Operating income                                                                                         41,875                                                                         3,746
   Interest and other income                                                                                    77                                                                --
   Interest:
      Expense incurred, net                                                                                (13,316 )                                                                      (8,289 )
      Amortization of deferred financing costs                                             (270 )                                                       (1 )
                                                                                      -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                  
   Income (loss) before income and other taxes and income (loss)
      from investments in unconsolidated entities                                                           28,366                                                                        (4,544                    )
   Income and other tax (expense) benefit                                                                      (27 )                                                                         (13 )
   Income (loss) from investments in unconsolidated entities                             (1,549 )                                           --  
                                                                                      -------------------- ------- --------------------                      -------------------- -------------- --------------------
   Net income (loss)                                                                                     $  26,790                                           $         (4,557 )
                                                                                      ==================== ======= ====================                      ==================== ============== ====================
                                                                                                                                                                                                  
Debt - Secured (1):
      EQR Ownership (2)                                                                                  $ 237,289                                                              $         29,085
      Noncontrolling Ownership                                                           65,058                                 116,339  
                                                                                      -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                  
Total (at 100%)                                                                                          $ 302,347                                           $        145,424  
                                                                                      ==================== ======= ====================                      ==================== ============== ====================
(1)   All debt is non-recourse to the Company.
(2)                      Represents the Company’s current equity ownership interest.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Development and Lease-Up Projects as of December 31, 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                                                                           Budgeted                                                                           Book Value                                                                           Value Not                                                                             Debt                                                                        Completed                                                                    Leased                                                                       Occupied                                                        Completion                          Stabilization
                                                                                                                                    Units                                                                              Capital                                                                             to Date                                                                            Placed in                                                                                                                                                                                                                                                                                                                                                                                      Date                                 Date
                                                                                                                                                                                                                        Cost                                                                                                                                                                   Service
----------------------------------------------------                      -----------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      -----------------------------  --------------------                      ----------------------------------  --------------------                      ----------------------------------  --------------------                      ----------                      --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Projects Under Development:
----------------------------------------------------
855 Brannan                                                               San Francisco, CA                                                            449                                                              $              304,035                                                              $              296,916                                                              $               90,676                                                              $       --                                                                       96 %                                                                          55 %                                                                          50 %                                           Q1 2018                              Q1 2019
100 K Street                                                              Washington, DC                                                               222                                                                              88,023                                                                              45,603                                                                              45,603                                                                      --                                                                       33 %                                                              --                                                                --                                             Q4 2018                              Q4 2019
1401 E. Madison                                                           Seattle, WA                                                                  137                                                                              62,352                                                                              18,334                                                                              18,334                                                                      --                                                                        3 %                                                              --                                                                --                                             Q3 2019                              Q1 2020
249 Third Street                                                          Cambridge, MA                                                                 84                                                                              51,447                                                                               8,934                                                                               8,934                                                                      --                                                                        1 %                                                              --                                                                --                                             Q4 2019                              Q2 2020
                                                                                                                                                                                                                                  
                                                                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Projects Under Development                                                                                                          892                                       505,857                                       369,787                                       163,547                                --  
                                                                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Completed Not Stabilized (1):
----------------------------------------------------
455 Eye Street                                                            Washington, DC                                                               174                                                                              73,157                                                                              72,972                                                                      --                                                                      --                                                                                                                                                     96 %                                                                          91 %                                          Completed                             Q1 2018
Helios (formerly 2nd & Pine)                                              Seattle, WA                                                                  398                                                                             227,287                                                                             220,101                                                                      --                                                                      --                                                                                                                                                     54 %                                                                          48 %                                          Completed                             Q2 2019
Cascade                                                                   Seattle, WA                                                                  477                                                                             176,378                                                                             169,597                                                                      --                                                                      --                                                                                                                                                     50 %                                                                          47 %                                          Completed                             Q2 2019
                                                                                                                                                                                                                                  
                                                                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Projects Completed Not Stabilized                                                                                                 1,049                                       476,822                                       462,670                                --                                --  
                                                                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Completed and Stabilized During the
Quarter:
----------------------------------------------------
Altitude (formerly Village at Howard Hughes)                              Los Angeles, CA                                                              545                                                                             192,331                                                                             191,747                                                                      --                                                                      --                                                                                                                                                     96 %                                                                          95 %                                          Completed                           Stabilized
The Alton (formerly Millikan)                                             Irvine, CA                                                                   344                                                                             107,381                                                                             106,795                                                                      --                                                                      --                                                                                                                                                     96 %                                                                          95 %                                          Completed                           Stabilized
One Henry Adams                                                           San Francisco, CA                                                            241                                                                             169,437                                                                             167,256                                                                      --                                                                      --                                                                                                                                                     96 %                                                                          93 %                                          Completed                           Stabilized
                                                                                                                                                                                                                                  
                                                                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Projects Completed and Stabilized During the Quarter                                                                              1,130                                       469,149                                       465,798                                --                                --  
                                                                                                                 -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Total Development Projects                                                                                                        3,071                                           $            1,451,828                                           $            1,298,255                                           $              163,547                                           $       --  
                                                                                                                 ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Land Held for Development                                                                                                                              N/A                                                              N/A                                           $               98,963                                           $               98,963                                           $       --  
                                                                                                                 ==============================================================                      ==============================================================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Total Capital                                                                  Q4 2017
NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Cost                                                      NOI                 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     ---------------------------------------------------                      --------------------------------------------------------
Projects Under Development                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              $   505,857                                                              $          1,878
Completed Not Stabilized                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    476,822                                                                         2,793
Completed and Stabilized During the Quarter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              469,149                                   6,215  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     -------------------- --------- --------------------                      -------------------- -------------- --------------------
   Total Development NOI Contribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   $ 1,451,828                                           $         10,886  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     ==================== ========= ====================                      ==================== ============== ====================
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
                                                                                                                                                                     Capital Expenditures to Real Estate
                                                                                                                                                                    For the Year Ended December 31, 2017
                                                                                                                                                      (Amounts in thousands except for apartment unit and per apartment
                                                                                                                                                                                unit amounts)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                Same Store                                  Non-Same Store                                     Total                                    Same Store Avg.
                                                                                      Properties                                                                       Properties/Other                                                                                                                                                       Per Apartment Unit
                                                                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------
                                                                                                                                                                                                                                                   
Total Apartment Units (1)                                                             70,117                                         7,549                                        77,666  
                                                                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                        
Building Improvements                                                                    $              114,162                                                              $                3,966                                                              $              118,128                                                              $                1,628
                                                                                                                                                                                                                                                                                                                                                        
Renovation Expenditures (2)                                                                              44,418                                                                                 888                                                                              45,306                                                                                 634
                                                                                                                                                                                                                                                                                                                                                        
Replacements                                                                                             38,560                                                                                 613                                                                              39,173                                                                                 550
                                                                                                                                                          
                                                                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- --------------------
Total Capital Expenditures                                                               $              197,140                                           $                5,467                                           $              202,607                                           $                2,812
                                                                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ====================

Note: See pages 27 through 30 for the definitions of non-GAAP financial measures and other terms.

(1)   Total Apartment Units - Excludes 945 unconsolidated apartment units
                         for which capital expenditures to real estate are self-funded and do
                         not consolidate into the Company’s results.
(2)                      Renovation Expenditures on 3,371 same store apartment units for the
                         year ended December 31, 2017 approximated $13,200 per apartment unit
                         renovated.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Normalized EBITDA Reconciliations
                                                                                                                                                                                                                                     (Amounts in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                                     Normalized EBITDA Reconciliations for Page 18
                                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                        --------------------------------------------------------------------------------------------------------------------------------------------------                      --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                      --------------------------------------------------------------
                                                                                                                                            Trailing Twelve Months                                                                                                                                                                                                                            2017                                                                                                                                                                                           2016                    
                                                                                        --------------------------------------------------------------------------------------------------------------------------------------------------                      --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                      --------------------------------------------------------------
                                                                                                     December 31, 2017                            September 30, 2017                                                       Q4                                            Q3                                            Q2                                            Q1                                                               Q4                     
                                                                                        --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------                      --------------------------------------------------------------
Net income                                                                                                 $              628,381                                                              $              800,678                                                              $              130,084                                                              $              144,196                                                              $              204,160                                                              $              149,941                                                              $              302,381
Interest expense incurred, net                                                                                            383,890                                                                             384,509                                                                              95,311                                                                              91,145                                                                              91,224                                                                             106,210                                                                              95,930
Amortization of deferred financing costs                                                                                    8,526                                                                               9,080                                                                               2,079                                                                               2,064                                                                               2,087                                                                               2,296                                                                               2,633
Depreciation                                                                                                              743,749                                                                             720,371                                                                             200,785                                                                             184,100                                                                             179,896                                                                             178,968                                                                             177,407
Income and other tax expense (benefit) (includes discontinued                                                                 478                                                                               1,135                                                                                (232 )                                                                               228                                                                                 220                                                                                 262                                                                                 425
operations)
                                                                                                                                                                                                                                                               
                                                                                        -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
EBITDA                                                                                                                  1,765,024                                                                           1,915,773                                                                             428,027                                                                             421,733                                                                             477,587                                                                             437,677                                                                             578,776
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Impairment                                                                                                                  1,693                                                                      --                                                                               1,693                                                                      --                                                                      --                                                                      --                                                                      --
Write-off of pursuit costs (other expenses)                                                                                 3,106                                                                               3,042                                                                                 777                                                                                 783                                                                                 831                                                                                 715                                                                                 713
(Income) loss from investments in unconsolidated entities                                                                   3,370                                                                               3,198                                                                               1,217                                                                                 398                                                                                 682                                                                               1,073                                                                               1,045
Net (gain) loss on sales of land parcels                                                                                  (19,167 )                                                                           (19,142 )                                                                                 3                                                                      --                                                                                  23                                                                             (19,193 )                                                                                28
(Gain) loss on sale of investment securities and other investments                                                 --                                                                                   7                                                                      --                                                                      --                                                                      --                                                                      --                                                                                   7
(interest and other income)
Insurance/litigation settlement or reserve income (interest and                                                            (4,853 )                                                                            (5,053 )                                                                              (137 )                                                                            (3,500 )                                                                              (836 )                                                                              (380 )                                                                              (337 )
other income)
Insurance/litigation/environmental settlement or reserve expense                                                              237                                                                              (4,837 )                                                                    --                                                                      --                                                                                 (56 )                                                                               293                                                                              (5,074 )
(other expenses)
Other                                                                                                                       1,245                                                                                 657                                                                                 961                                                                                  95                                                                                  93                                                                                  96                                                                                 373
Net (gain) loss on sales of real estate properties                                                    (157,057 )                                                       (314,945 )                                                        (15,296 )                                                        (17,328 )                                                        (87,726 )                                                        (36,707 )                                                       (173,184 )
                                                                                        -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Normalized EBITDA                                                                                          $            1,593,598                                           $            1,578,700                                           $              417,245                                           $              402,181                                           $              390,598                                           $              383,574                                           $              402,347  
                                                                                        ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Balance Sheet Items:                                                                                 December 31, 2017                                               September 30, 2017             
------------------------------------------------------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Total debt                                                                                                 $            8,957,291                                                              $            8,992,272
Cash and cash equivalents                                                                                                 (50,647 )                                                                           (46,565 )
Mortgage principal reserves/sinking funds                                                               (3,167 )                                                         (1,595 )
                                                                                        -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Net debt                                                                                                   $            8,903,477                                           $            8,944,112  
                                                                                        ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Adjustments from FFO to Normalized FFO
                                                                                                                                                                                                                                     (Amounts in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                           Year Ended December 31,                                                                                                                                                                        Quarter Ended December 31,                                                                                    
                                                                                            --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                      --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                            2017                                    2016                               Variance                                                  2017                                    2016                                  Variance               
                                                                                            --------------------------------------------------------                      --------------------------------------------------------                      --------------------------------------------------                      --------------------------------------------------------                      --------------------------------------------------------                      --------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Impairment                                                                                                     $          1,693                                           $ --                                           $    1,693                                           $          1,693                                           $ --                                           $          1,693  
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Asset impairment and valuation allowances                                                              1,693                          --                             1,693                                   1,693                          --                                   1,693  
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Write-off of pursuit costs (other expenses)                                                            3,106                                   4,092                              (986 )                                                      777                                     713                                      64  
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Write-off of pursuit costs                                                                             3,106                                   4,092                              (986 )                                                      777                                     713                                      64  
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Prepayment premiums/penalties (interest expense)                                                                         12,258                                                                       114,666                                                                (102,408 )                                                              --                                                                         2,247                                                                        (2,247 )
Write-off of unamortized deferred financing costs (interest expense)                                                        251                                                                         3,854                                                                  (3,603 )                                                              --                                                                           491                                                                          (491 )
Write-off of unamortized (premiums)/discounts/OCI (interest expense)                                                       (720 )                                                                       4,494                                                                  (5,214 )                                                              --                                                                --                                                                --
Noncontrolling Interests share of debt extinguishment costs                                                      --                                                                        (1,394 )                                                                 1,394                                                                --                                                                        (1,394 )                                                                       1,394
(Gain) loss due to ineffectiveness of forward starting swaps                                  --                                      74                               (74 )                                           --                                      74                                     (74 )
(interest expense)
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Debt extinguishment (gains) losses, including prepayment penalties,                                   11,789                                 121,694                          (109,905 )                                           --                                   1,418                                  (1,418 )
preferred share redemptions and non-cash convertible debt discounts
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Net (gain) loss on sales of land parcels                                                                                (19,167 )                                                                     (15,731 )                                                                (3,436 )                                                                           3                                                                            28                                                                           (25 )
Net (gain) loss on sales of unconsolidated entities - non-operating                                                        (205 )                                                                         (81 )                                                                  (124 )                                                              --                                                                --                                                                --
assets
(Gain) loss on sale of investment securities and other investments                                               --                                                                       (58,409 )                                                                58,409                                                                --                                                                             7                                                                            (7 )
(interest and
other income)
(Income) loss from investments in unconsolidated entities -                                   488                                     920                              (432 )                                                      468                                     264                                     204  
non-operating assets
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
(Gains) losses on sales of non-operating assets, net of income and                                   (18,884 )                                                  (73,301 )                                             54,417                                     471                                     299                                     172  
other tax
expense (benefit)
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Insurance/litigation settlement or reserve income (interest and                                                          (4,853 )                                                                      (3,228 )                                                                (1,625 )                                                                        (137 )                                                                        (337 )                                                                         200
other income)
Insurance/litigation/environmental settlement or reserve expense                                                            237                                                                         4,024                                                                  (3,787 )                                                              --                                                                        (5,074 )                                                                       5,074
(other expenses)
Other                                                                                                  1,245                                   2,839                            (1,594 )                                                      961                                     373                                     588  
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Other miscellaneous items                                                                             (3,371 )                                                    3,635                            (7,006 )                                                      824                                  (5,038 )                                                    5,862  
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Adjustments from FFO to Normalized FFO                                                                         $         (5,667 )                                                            $         56,120                                           $  (61,787 )                                                            $          3,765                                           $         (2,608 )                                                            $          6,373  
                                                                                            ==================== ============== ====================                      ==================== ============== ====================                      ==================== ======== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================

Note: See pages 27 through 30 for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share

 
------------------------------------------------------------------
                        Equity Residential
              Normalized FFO Guidance and Assumptions
------------------------------------------------------------------
The guidance/projections provided below are based on current
expectations and are forward-looking. All guidance is given on a
Normalized FFO basis. Therefore, certain items excluded from
Normalized FFO, such as debt extinguishment costs/prepayment
penalties and the write-off of pursuit costs, are not included in
the estimates provided on this page. See pages 27 through 30 for
the definitions of non-GAAP financial measures and other terms as
well as the reconciliations of EPS to FFO per share and Normalized
FFO per share.
                                  2018 Normalized FFO Guidance (per share
                                                 diluted)
-----------------------------------------------------------------------------------------------------
 
                                        Q1 2018           2018
                                                       --------------                      --------------
Expected Normalized FFO Per Share                      $0.74 to $0.78                      $3.17 to $3.27
                                   2018 Same Store Assumptions
-------------------------------------------------------------------------------------------
 
Physical Occupancy            96.0%
Revenue change                                                                     1.0% to 2.25%
Expense change                                                                     3.5% to 4.5%
NOI change                                                                         0.0% to 1.5%

Note: Approximately 25 basis point change in NOI percentage = $0.01 per share change in EPS/FFO per share/Normalized FFO per share.

                                                      2018 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
                                                                       2018 Debt Assumptions
-------------------------------------------------------------------------------------------------------------------------------------------------------------
 
Weighted average debt outstanding                                         $8.8 billion to $9.1 billion
Weighted average interest rate (reduced for capitalized interest)                                                                              4.21%
Interest expense, net (on a Normalized FFO basis)                                                                                $370.5 million to $383.1 million
Capitalized interest                                                                                                               $4.0 million to $8.0 million

Note: All 2018 debt assumptions are shown on a Normalized FFO basis and therefore exclude an approximately $23.7 million impact from anticipated debt extinguishment costs/prepayment penalties described on page 4.

                                     2018 Capital Expenditures to Real Estate
                                                    Assumptions
-------------------------------------------------------------------------------------------------------------
 
                                            Per Same Store        Total
                                                               Apartment Unit
                                          -------------------- --------------                      --------------
Total Capital Expenditures to Real Estate       $2,900                          $210.0 million

Note: During 2018, the Company expects to spend approximately $60.0 million for apartment unit Renovation Expenditures on approximately 4,500 same store apartment units at an average cost of approximately $13,300 per apartment unit renovated.

                                                         2018 Other Guidance Assumptions
--------------------------------------------------------------------------------------------------------------------------------------------
 
Property management expense                              $88.5 million to $90.5 million
General and administrative expense                                                                                $53.0 million to $55.0 million
Interest and other income                                                                                          $0.5 million to $1.0 million
Income and other tax expense                                                                                       $0.5 million to $1.0 million
Debt offerings                                                                                                    $800.0 million to $1.0 billion
Equity ATM share offerings                                                                                              No amounts budgeted
Preferred share offerings                                                                                               No amounts budgeted
Weighted average Common Shares and Units - Diluted                                                                         383.8 million
 
------------------------------------------------------------------------------
                              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.
Capital Expenditures to Real Estate:
   Building Improvements - Includes roof replacement, paving,
   building mechanical equipment systems, exterior siding and
   painting, major landscaping, furniture, fixtures and equipment for
   amenities and common areas, vehicles and office and maintenance
   equipment.
   Renovation Expenditures - Apartment unit renovation costs
   (primarily kitchens and baths) designed to reposition these units
   for higher rental levels in their respective markets.
   Replacements - Includes appliances, mechanical equipment,
   fixtures and flooring (including hardwood and carpeting).
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 Budgeted 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 Budgeted 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
(loss) 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 (loss) 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 (loss) on
sales of real estate properties in accordance with GAAP to
Economic Gain:
                                                            Year Ended December 31, 2017           Quarter Ended December 31, 2017    
                                                                           --------------------------------------------------------                      ---------------------------------------------------------
                                                                                                                                                                                               
   Net Gain (Loss) on Sales of Real Estate Properties                                         $        157,057                                                              $          15,296
   Accumulated Depreciation Gain                                                    (64,619 )                                                   (10,383 )
                                                                           -------------------- -------------- --------------------                      -------------------- --------------- --------------------
                                                                                                                                                                                               
   Economic Gain                                                                              $         92,438                                           $           4,913  
                                                                           ==================== ============== ====================                      ==================== =============== ====================
 
-----------------------------------------------------------------------------------------------------------------------------
                                                      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 7 and 26 (the
expected guidance/projections provided below are based on current
expectations and are forward-looking):
 
                                                                                                                                                                                        Actual                                                     Actual                                         Expected              Expected
                                                                                   Actual 2017                                                                   Actual 2016                                                                     Q4 2017                                                                       Q4 2016                                                            Q1 2018                                                      2018
                                                                                    Per Share                                                  Per Share                                                  Per Share                                                  Per Share                                       Per Share                                Per Share
                                                                      --------------------------------------------------------                      --------------------------------------------------------                      --------------------------------------------------------                      --------------------------------------------------------                      -------------- --------------------                      --------------------
EPS - Diluted                                                                            $           1.63                                                              $          11.68                                                              $           0.34                                                              $           0.75                                           $0.48 to $0.52                                              $1.71 to $1.81
Add: Depreciation expense                                                                            1.93                                                                          1.83                                                                          0.52                                                                          0.46                                                0.51                                                        2.01
Less: Net (gain) loss on sales                                                   (0.41 )                                                   (10.57 )                                                    (0.04 )                                                    (0.41 )                                             (0.30)                                   (0.62)
                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------- --------------------                      --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                        
FFO per share - Diluted                                                                              3.15                                                                          2.94                                                                          0.82                                                                          0.80                                            0.69 to 0.73                                                3.10 to 3.20
                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Asset impairment and valuation allowances                                                  --                                                                --                                                                --                                                                --                                           --                                              --
Write-off of pursuit costs                                                                           0.01                                                                          0.01                                                                --                                                                --                                           --                                                   0.01
Debt extinguishment (gains) losses, including                                                        0.03                                                                          0.32                                                                --                                                                --                                                0.06                                                        0.06
prepayment penalties, preferred share
redemptions and non-cash convertible debt
discounts
(Gains) losses on sales of non-operating assets,                                                    (0.05 )                                                                       (0.19 )                                                              --                                                                --                                           --                                              --
net of income and other tax expense (benefit)
Other miscellaneous items                                                        (0.01 )                                                     0.01                                    0.01                                   (0.01 )                                             (0.01)                               --
                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------- --------------------                      --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Normalized FFO per share - Diluted                                                       $           3.13                                           $           3.09                                           $           0.83                                           $           0.79                        $0.74 to $0.78                           $3.17 to $3.27
                                                                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ============== ====================                      ====================

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/other results (see page 11):

                                                                                 Year Ended December 31,                                                                                       Quarter Ended December 31,                                          
                                                         ---------------------------------------------------------------------------------------------------------------------------------                      -------------------------------------------------------------------------------------------------------------------------------
                                                                      2017                                  2016                                                   2017                                 2016                 
                                                         ---------------------------------------------------                      --------------------------------------------------------                      -------------------------------------------------                      --------------------------------------------------------
Operating income                                                            $   847,471                                                              $        856,086                                                              $ 214,764                                                              $        224,070
Adjustments:
   Fee and asset management revenue                                                (717 )                                                                      (3,567 )                                                                 (185 )                                                                        (216 )
   Property management                                                           85,493                                                                        82,015                                                                 20,791                                                                        18,012
   General and administrative                                                    52,224                                                                        57,840                                                                 11,858                                                                        10,432
   Depreciation                                                                 743,749                                                                       705,649                                                                200,785                                                                       177,407
   Impairment                                                  1,693                          --                            1,693                          --  
                                                         -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------
Total NOI                                                                   $ 1,729,913                                           $      1,698,023                                           $ 449,706                                           $        429,705  
                                                         ==================== ========= ====================                      ==================== ============== ====================                      ==================== ======= ====================                      ==================== ============== ====================
Rental income:
   Same store                                                               $ 2,248,564                                                              $      2,200,094                                                              $ 590,387                                                              $        577,809
   Non-same store/other                                      222,125                                 222,139                           40,132                                  27,464  
                                                         -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------
Total rental income                                                           2,470,689                                                                     2,422,233                                                                630,519                                                                       605,273
Operating expenses:
   Same store                                                                   656,321                                                                       639,342                                                                169,647                                                                       165,552
   Non-same store/other                                       84,455                                  84,868                           11,166                                  10,016  
                                                         -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------
Total operating expenses                                                        740,776                                                                       724,210                                                                180,813                                                                       175,568
NOI:
   Same store                                                                 1,592,243                                                                     1,560,752                                                                420,740                                                                       412,257
   Non-same store/other                                      137,670                                 137,271                           28,966                                  17,448  
                                                         -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------
Total NOI                                                                   $ 1,729,913                                           $      1,698,023                                           $ 449,706                                           $        429,705  
                                                         ==================== ========= ====================                      ==================== ============== ====================                      ==================== ======= ====================                      ==================== ============== ====================
 
---------------------------------------------------------------------------------------------------------------------------
                                                     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 2018 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 Budgeted 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=20180130006405r1&sid=cmtx6&distro=nx&lang=en

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SOURCE: Equity Residential

Equity Residential 
Marty McKenna, (312) 928-1901


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