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Equity Residential (EQR) SEC Filing 8-K Material Event for the period ending Tuesday, January 30, 2018

Equity Residential

CIK: 906107 Ticker: EQR

 

Exhibit 99.1

 

 

 

 

NEWS RELEASE - FOR IMMEDIATE RELEASE

 

JANUARY 30, 2018

 

Equity Residential Reports Full Year 2017 Results

Provides Outlook for 2018

 

Chicago, IL – January 30, 2018 - Equity Residential (NYSE: 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.

1


 

 

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%.

2


 

 

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:

 

3


 

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).

4


 

 

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.

5


 

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

   and discontinued operations

 

 

456,005

 

 

 

416,612

 

 

 

115,776

 

 

 

130,300

 

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

 

 

6


 

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 Interests – Partially

   Owned Properties

 

 

(2,323

)

 

 

(16,430

)

 

 

31

 

 

 

(14,062

)

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 - operating

   assets

 

 

(73

)

 

 

(8,841

)

 

 

(5

)

 

 

 

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 sales

   of real estate properties

 

 

290

 

 

 

14,521

 

 

 

290

 

 

 

14,521

 

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, net of income

   and other tax expense (benefit)

 

 

(18,884

)

 

 

(73,301

)

 

 

471

 

 

 

299

 

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.

7


 

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

 

 

 

 

8


 

 

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