Last10K.com

Equity Residential (EQR) SEC Filing 8-K Material Event for the period ending Wednesday, February 10, 2021

Equity Residential

CIK: 906107 Ticker: EQR

 

i

 

 

 

 


 

 

 

Fourth Quarter 2020 Results

Table of Contents



Corporate Headquarters:
Two North Riverside Plaza
Chicago, IL 60606
(312) 474-1300


Information included in this supplemental package is unaudited.

 

 


Table of Contents

 

 

 

 

 

NEWS RELEASE - FOR IMMEDIATE RELEASE

 

February 10, 2021

 

Equity Residential Reports Full Year 2020 Results

Provides Full Year 2021 Guidance

 

Chicago, IL – February 10, 2021 - Equity Residential (NYSE: EQR) today reported results for the quarter and year ended December 31, 2020 and has posted a Q4 2020 Management Presentation to its website as referenced below.

 

Fourth Quarter 2020 Results

All per share results are reported as available to common shares/units on a diluted basis.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended December 31,

 

 

 

 

 

2020

 

 

2019

 

 

$ Change

 

 

% Change

 

 

 

Earnings Per Share (EPS)

 

$

0.68

 

 

$

0.77

 

 

$

(0.09

)

 

 

(11.7

%)

 

 

Funds from Operations (FFO) per share

 

$

0.73

 

 

$

0.86

 

 

$

(0.13

)

 

 

(15.1

%)

 

 

Normalized FFO per share

 

$

0.76

 

 

$

0.91

 

 

$

(0.15

)

 

 

(16.5

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

 

 

2020

 

 

2019

 

 

$ Change

 

 

% Change

 

 

 

Earnings Per Share (EPS)

 

$

2.45

 

 

$

2.60

 

 

$

(0.15

)

 

 

(5.8

%)

 

 

Funds from Operations (FFO) per share

 

$

3.21

 

 

$

3.39

 

 

$

(0.18

)

 

 

(5.3

%)

 

 

Normalized FFO per share

 

$

3.26

 

 

$

3.49

 

 

$

(0.23

)

 

 

(6.6

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“We are optimistic that 2021 will be a year of recovery for Equity Residential.  Operating trends are improving and we expect that our financial results will bottom out in the first half of 2021,” said Mark J. Parrell, Equity Residential’s President and CEO.  “Our affluent, well-employed resident base remains drawn to our nation’s great cities and we expect demand to accelerate and pricing to continue to improve as vaccines are widely administered and cities become more active.  Many thanks to our colleagues across the country for their hard work in 2020 under very tough conditions.”

 

Highlights

 

 

The Company has seen a 0.9% improvement in same store Physical Occupancy since the end of the third quarter 2020 (94.2% on September 30, 2020 to 95.1% on January 31, 2021).

 

Pricing Trends stabilized in November 2020 and modestly improved in December 2020 and January 2021 for the first time since the beginning of the pandemic.  See the Management Presentation referenced below for details.

 

The Company collected approximately 97% of its expected Residential revenues in the fourth quarter of 2020.

 

The Company used the proceeds from the sale described below as well as cash on hand and borrowings under its commercial paper program to satisfy its obligations on its $750.0 million 4.625% unsecured notes due in December 2021, by discharging them pursuant to their indenture.  During 2020, the Company paid down nearly $1.0 billion in the aggregate in debt, further strengthening its balance sheet.

 

The Company sold Vantage Pointe, a 679-unit apartment property located in downtown San Diego, for a sale price of approximately $312.5 million at a Disposition Yield of 4.1%, generating an Unlevered IRR of 8.8% over the Company’s ten-year ownership period.

 

1


Table of Contents

 

Results Per Share

The changes in EPS for the quarter and year ended December 31, 2020 compared to the same periods of 2019 are due primarily to lower depreciation expense in the current periods as a result of the Company's disposition activity, the various adjustment items listed on page 26 of this release and the items described below.  

The per share changes in FFO for both the quarter and year ended December 31, 2020 compared to the same periods of 2019, are due primarily to the various adjustment items listed on page 26 of this release and the items described below.

The per share changes in Normalized FFO are due primarily to:

 

 

 

Positive/(Negative) Impact

 

 

 

Fourth Quarter 2020 vs.

Fourth Quarter 2019

 

 

Full Year 2020 vs.

Full Year 2019

 

Residential same store Net Operating Income (NOI)

 

$

(0.15

)

 

$

(0.22

)

Non-Residential same store NOI (1)

 

 

(0.01

)

 

 

(0.08

)

Lease-Up NOI

 

 

 

 

0.01

 

2020 and 2019 transaction activity impact on NOI, net

 

(0.03

)

 

 

(0.06

)

Interest expense, net

 

 

0.03

 

 

 

0.11

 

Other items

 

 

0.01

 

 

 

0.01

 

Net

 

$

(0.15

)

 

$

(0.23

)

 

(1)

Non-Residential same store NOI was negatively impacted by a $(0.03) per share non-cash write-off of Non-Residential straight-line lease receivables during the year ended December 31, 2020, primarily in the third quarter of 2020.

 

The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 28 through 33 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 7, 30 and 31 of this release.

 

Same Store Results

The Company has provided a breakout of Residential and Non-Residential same store results on page 11 of this release with definitions that can be found on page 32 of this release.  Non-Residential operations account for approximately 2.7% of total revenues for the year ended December 31, 2020.  The table below reflects same store Residential only results for the fourth quarter 2020 to fourth quarter 2019 comparison, which includes 76,535 apartment units, as well as for the year ended December 31, 2020 to year ended December 31, 2019 comparison, which includes 73,585 apartment units. The Company’s Physical Occupancy was 94.2% compared to 96.1% for the fourth quarter of 2020 and 2019, respectively, and 95.1% compared to 96.4% for the full year of 2020 and 2019, respectively.

 

 

 

Fourth Quarter 2020 vs.

Fourth Quarter 2019

 

 

Full Year 2020 vs.

Full Year 2019

 

Revenues

 

(8.2%)

 

 

(2.9%)

 

Expenses

 

2.8%

 

 

2.1%

 

NOI

 

(12.9%)

 

 

(5.0%)

 

 

2


Table of Contents

 

The following table reflects the detail of the change in Same Store Residential Revenues, which is presented on a GAAP basis showing Leasing Concessions on a straight-line basis.  See pages 12 and 32 for detail and reconciliations of Same Store Residential Revenues on a GAAP basis to Same Store Residential Revenues with Leasing Concessions on a cash basis.

 

 

 

Fourth Quarter 2020 vs.
Fourth Quarter 2019

 

 

Full Year 2020 vs.
Full Year 2019

 

 

 

% Change

 

 

% Change

 

Same Store Residential Revenues-

  comparable period

 

 

 

 

 

 

 

Lease rates

 

 

(4.4

%)

 

 

(0.4

%)

Leasing Concessions (1)

 

 

(1.2

%)

 

 

(0.4

%)

Vacancy loss

 

 

(1.6

%)

 

 

(1.3

%)

Bad Debt, Net (2)

 

 

(1.6

%)

 

 

(1.2

%)

Other (3)

 

 

0.6

%

 

 

0.4

%

Same Store Residential Revenues-

  current period

 

(8.2

%)

 

 

(2.9

%)

 

(1)

Reflects upfront discounts on both new move-in and renewal leases on a straight-line basis.

(2)

Reduction in rental income due to bad debt write-offs and reserves, net of amounts collected on previously written-off or reserved accounts.

(3)

Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items.

 

Residential Same Store Operating Statistics

The following table includes select statistics for Residential Same Store Properties presented on a suburban and urban basis.  Statistics for January 2021 are preliminary and Blended Rate is inclusive of Leasing Concessions.

 

 

 

% of

Same Store

Residential

Revenues

 

 

Physical Occupancy on:

 

 

Percentage of Residents

Renewing by Month

 

 

Blended Rate

 

 

 

Dec

YTD 2020

 

 

Sep 30,

2020

 

 

Dec 31,

2020

 

 

Jan 31,

2021

 

 

Jan

2020

 

 

Dec

2020

 

 

Jan

2021 (1)

 

 

Q4

2020

 

 

Dec

2020

 

 

Jan

2021 (1)

 

Suburban (2)

 

44%

 

 

95.9%

 

 

95.8%

 

 

96.1%

 

 

58%

 

 

58%

 

 

55%

 

 

(7.0%)

 

 

(7.3%)

 

 

(7.3%)

 

Urban Other (2)(3)

 

33%

 

 

94.3%

 

 

94.6%

 

 

95.3%

 

 

55%

 

 

47%

 

 

45%

 

 

(13.4%)

 

 

(14.3%)

 

 

(14.7%)

 

Urban Core (2)(4)

23%

 

 

89.2%

 

 

90.2%

 

 

91.8%

 

 

63%

 

 

49%

 

 

51%

 

 

(25.0%)

 

 

(26.6%)

 

 

(25.0%)

 

Total

 

100%

 

 

94.2%

 

 

94.4%

 

 

95.1%

 

 

58%

 

 

53%

 

 

52%

 

 

(13.0%)

 

 

(13.9%)

 

 

(14.1%)

 

 

(1)

January 2021 results are preliminary.

(2)

The Company defines Urban submarkets as those with 3,500 or more households per square mile with the remainder defined as Suburban.

(3)

Includes all other Urban properties excluding Urban Core.

(4)

Includes Urban properties in Manhattan/Brooklyn, Downtown Boston/Cambridge and Downtown San Francisco.

 

Investment Activity

The Company sold a 679-unit apartment property in downtown San Diego during the fourth quarter of 2020 for a sale price of approximately $312.5 million at a Disposition Yield of 4.1% generating an Unlevered IRR of 8.8%. The Company also sold two land parcels for an aggregate sale price of approximately $55.5 million. The Company did not acquire any assets during the fourth quarter of 2020.

 

During the full year of 2020, the Company acquired a 158-unit apartment property in suburban Seattle for a purchase price of approximately $48.9 million at an Acquisition Capitalization Rate of 4.7%. Also, during the full year of 2020, the Company sold six properties, consisting of 2,231 apartment units, for an aggregate sales price of approximately $1.07 billion at a weighted average Disposition Yield of 4.5%, generating an Unlevered IRR of 10.2%.

 

Capital Markets Activity

In December 2020, the Company used the proceeds from the property sale described above as well as cash on hand and borrowings under its commercial paper program to satisfy its obligations on its $750.0 million 4.625% unsecured notes due in December 2021, by discharging them pursuant to their indenture.   As a result, the Company incurred approximately $39.1 million in debt extinguishment charges, of which $25.8 million represented a cash charge and the remaining $13.3 million corresponded to write-offs of unamortized debt costs. These charges impacted the Company’s 2020 Earnings Per Share and Funds from Operations per share but did not impact the Company’s Normalized Funds from Operations per share.

3


Table of Contents

 

 

First Quarter 2021 Guidance

The Company has established guidance ranges for the first quarter of 2021 EPS, FFO per share and Normalized FFO per share as listed below:

 

 

 

Q1 2021

Guidance

EPS

 

$0.31 to $0.35

FFO per share

 

$0.65 to $0.69

Normalized FFO per share

 

$0.65 to $0.69

 

The difference between the fourth quarter 2020 actual EPS of $0.68 and the first quarter of 2021 EPS guidance midpoint of $0.33 is due primarily to lower expected property sale gains, lower expected debt extinguishment costs, lower expected land sale gains and the items described below.

 

The difference between the fourth quarter 2020 actual FFO of $0.73 per share and the first quarter of 2021 FFO guidance midpoint of $0.67 per share is due primarily to lower expected debt extinguishment costs, lower expected land sale gains and the items described below.

 

The difference between the fourth quarter 2020 actual Normalized FFO of $0.76 per share and the first quarter of 2021 Normalized FFO guidance midpoint of $0.67 per share is due primarily to:

 

 

 

Positive/(Negative) Impact

 

 

 

First Quarter 2021 vs.

Fourth Quarter 2020

 

Same Store NOI

 

$

(0.07

)

2020 transaction activity impact on NOI, net

 

 

(0.01

)

Interest expense, net

 

 

0.03

 

Corporate overhead (1)

 

 

(0.03

)

Other items

 

 

(0.01

)

Net

 

$

(0.09

)

 

(1)

Corporate overhead includes property management and general and administrative expenses.

 

Full Year 2021 Guidance

The Company has provided guidance for its full year 2021 same store operating performance, EPS, FFO per share and Normalized FFO per share as listed below:

 

Same Store (includes Residential and Non-Residential):

Physical Occupancy

 

94.8% to 95.8%

Revenue change

 

(9.0%) to (7.0%)

Expense change

 

3.0% to 4.0%

NOI change

 

(15.0%) to (12.0%)

 

 

 

EPS

 

$2.55 to $2.75

FFO per share

 

$2.58 to $2.78

Normalized FFO per share

 

$2.60 to $2.80

 

The difference between the Company’s full year 2020 actual EPS of $2.45 and the full year 2021 EPS guidance midpoint of $2.65 is due primarily to higher expected property sale gains, lower expected depreciation expense, lower expected debt extinguishment costs, lower expected land sale gains and the items described below.

 

The difference between the Company’s full year 2020 actual FFO of $3.21 per share and the full year 2021 FFO guidance midpoint of $2.68 per share is due primarily to lower expected debt extinguishment costs, lower expected land sale gains and the items described below.

 

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Table of Contents

 

The difference between the Company’s full year 2020 actual Normalized FFO of $3.26 per share and the full year 2021 Normalized FFO guidance midpoint of $2.70 per share is due primarily to:

 

 

 

Positive/(Negative)

Impact

 

 

 

Full Year 2021 vs.

Full Year 2020

 

Same Store NOI

 

$

(0.60

)

2021 and 2020 transaction activity impact on NOI, net

 

 

(0.07

)

Interest expense, net

 

 

0.14

 

Other items, including corporate overhead

 

 

(0.03

)

Net

 

$

(0.56

)

 

About Equity Residential

Equity Residential is committed to creating communities where people thrive.  The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract high quality long-term renters.  Equity Residential owns or has investments in 304 properties consisting of 77,889 apartment units, located in Boston, New York, Washington, D.C., Seattle, San Francisco, Southern California and Denver.  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.  In addition, these forward-looking statements are subject to risks related to the COVID-19 pandemic, many of which are unknown, including the duration and severity of the pandemic, the extent of the adverse health impact on the general population and on our residents, customers and employees in particular, its impact on the employment rate and the economy and the corresponding impact on our residents’ and tenants’ ability to pay their rent on time or at all, the extent and impact of governmental responses, the rollout and effectiveness of vaccines and the impact of operational changes we have implemented and may implement in response to the pandemic. 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, Thursday, February 11, 2021 at 10:00 a.m. CT.  In connection with the conference call, the Company is also providing a Management Presentation on its website.  Please visit the Investor section of the Company’s website at www.equityapartments.com for the web cast link and the presentation.

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Table of Contents

 

Equity Residential

Consolidated Statements of Operations

(Amounts in thousands except per share data)

(Unaudited)

 

 

 

Year Ended December 31,

 

 

Quarter Ended December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

2,571,705

 

 

$

2,700,691

 

 

$

613,435

 

 

$

683,895

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and maintenance

 

 

440,998

 

 

 

446,845

 

 

 

107,665

 

 

 

108,348

 

Real estate taxes and insurance

 

 

381,562

 

 

 

366,139

 

 

 

93,519

 

 

 

95,705

 

Property management

 

 

93,825

 

 

 

95,344

 

 

 

22,312

 

 

 

22,639

 

General and administrative

 

 

48,305

 

 

 

52,757

 

 

 

11,093

 

 

 

11,630

 

Depreciation

 

 

820,832

 

 

 

831,083

 

 

 

201,829

 

 

 

214,882

 

Total expenses

 

 

1,785,522

 

 

 

1,792,168

 

 

 

436,418

 

 

 

453,204

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain (loss) on sales of real estate properties

 

 

531,807

 

 

 

447,637

 

 

 

179,589

 

 

 

178,237

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

1,317,990

 

 

 

1,356,160

 

 

 

356,606

 

 

 

408,928

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

 

5,935

 

 

 

3,201

 

 

 

1,929

 

 

 

620

 

Other expenses

 

 

(17,510

)

 

 

(18,177

)

 

 

(9,186

)

 

 

(6,972

)

Interest:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense incurred, net

 

 

(365,073

)

 

 

(390,076

)

 

 

(116,724

)

 

 

(100,300

)

Amortization of deferred financing costs

 

 

(8,939

)

 

 

(11,670

)

 

 

(2,686

)

 

 

(3,006

)

Income before income and other taxes, income (loss) from

   investments in unconsolidated entities and net gain (loss)

   on sales of land parcels

 

 

932,403

 

 

 

939,438

 

 

 

229,939

 

 

 

299,270

 

Income and other tax (expense) benefit

 

 

(852

)

 

 

2,281

 

 

 

(350

)

 

 

3,030

 

Income (loss) from investments in unconsolidated entities

 

 

(3,284

)

 

 

65,945

 

 

 

(839

)

 

 

(961

)

Net gain (loss) on sales of land parcels

 

 

34,234

 

 

 

2,044

 

 

 

34,234

 

 

 

(33

)

Net income

 

 

962,501

 

 

 

1,009,708

 

 

 

262,984

 

 

 

301,306

 

Net (income) loss attributable to Noncontrolling Interests:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Partnership

 

 

(34,010

)

 

 

(36,034

)

 

 

(9,386

)

 

 

(10,695

)

Partially Owned Properties

 

 

(14,855

)

 

 

(3,297

)

 

 

(742

)

 

 

(847

)

Net income attributable to controlling interests

 

 

913,636

 

 

 

970,377

 

 

 

252,856

 

 

 

289,764

 

Preferred distributions

 

 

(3,090

)

 

 

(3,090

)

 

 

(772

)

 

 

(772

)

Net income available to Common Shares

 

$

910,546

 

 

$

967,287

 

 

$

252,084

 

 

$

288,992

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

2.45

 

 

$

2.61

 

 

$

0.68

 

 

$

0.78

 

Weighted average Common Shares outstanding

 

 

371,791

 

 

 

370,461

 

 

 

371,915

 

 

 

371,155

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

2.45

 

 

$

2.60

 

 

$

0.68

 

 

$

0.77

 

Weighted average Common Shares outstanding

 

 

385,874

 

 

 

386,333

 

 

 

385,756

 

 

 

387,143

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions declared per Common Share outstanding

 

$

2.41

 

 

$

2.27

 

 

$

0.6025

 

 

$

0.5675

 

 

6


Table of Contents

 

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,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net income

 

$

962,501

 

 

$

1,009,708

 

 

$

262,984

 

 

$

301,306

 

Net (income) loss attributable to Noncontrolling Interests – Partially

   Owned Properties

 

 

(14,855

)

 

 

(3,297

)

 

 

(742

)

 

 

(847

)

Preferred distributions

 

 

(3,090

)

 

 

(3,090

)

 

 

(772

)

 

 

(772

)

Net income available to Common Shares and Units

 

 

944,556

 

 

 

1,003,321

 

 

 

261,470

 

 

 

299,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

820,832

 

 

 

831,083

 

 

 

201,829

 

 

 

214,882

 

Depreciation – Non-real estate additions

 

 

(4,564

)

 

 

(5,585

)

 

 

(1,131

)

 

 

(1,350

)

Depreciation – Partially Owned Properties

 

 

(3,345

)

 

 

(3,599

)

 

 

(831

)

 

 

(899

)

Depreciation – Unconsolidated Properties

 

 

2,454

 

 

 

2,997

 

 

 

616

 

 

 

612

 

Net (gain) loss on sales of unconsolidated entities - operating

   assets

 

 

(1,636

)

 

 

(69,522

)

 

 

(636

)

 

 

 

Net (gain) loss on sales of real estate properties

 

 

(531,807

)

 

 

(447,637

)

 

 

(179,589

)

 

 

(178,237

)

Noncontrolling Interests share of gain (loss) on sales

   of real estate properties

 

 

11,655

 

 

 

 

 

 

 

 

 

 

FFO available to Common Shares and Units

 

 

1,238,145

 

 

 

1,311,058

 

 

 

281,728

 

 

 

334,695

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments (see note for additional detail):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment non-operating assets

 

 

 

 

 

 

 

 

 

 

 

 

Write-off of pursuit costs

 

 

6,869

 

 

 

5,529

 

 

 

2,005

 

 

 

1,431

 

Debt extinguishment and preferred share redemption (gains)

   losses

 

 

39,292

 

 

 

23,991

 

 

 

39,255

 

 

 

12,184

 

Non-operating asset (gains) losses

 

 

(32,590

)

 

 

(940

)

 

 

(33,612

)

 

 

260

 

Other miscellaneous items

 

 

4,652

 

 

 

8,430

 

 

 

5,166

 

 

 

1,891

 

Normalized FFO available to Common Shares and Units

 

$

1,256,368

 

 

$

1,348,068

 

 

$

294,542

 

 

$

350,461

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

$

1,241,235

 

 

$

1,314,148

 

 

$

282,500

 

 

$

335,467

 

Preferred distributions

 

 

(3,090

)

 

 

(3,090

)

 

 

(772

)

 

 

(772

)

FFO available to Common Shares and Units

 

$

1,238,145

 

 

$

1,311,058

 

 

$

281,728

 

 

$

334,695

 

FFO per share and Unit basic

 

$

3.22

 

 

$

3.42

 

 

$

0.73

 

 

$

0.87

 

FFO per share and Unit diluted

 

$

3.21

 

 

$

3.39

 

 

$

0.73

 

 

$

0.86

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Normalized FFO

 

$

1,259,458

 

 

$

1,351,158

 

 

$

295,314

 

 

$

351,233

 

Preferred distributions

 

 

(3,090

)

 

 

(3,090

)

 

 

(772

)

 

 

(772

)

Normalized FFO available to Common Shares and Units

 

$

1,256,368

 

 

$

1,348,068

 

 

$

294,542

 

 

$

350,461

 

Normalized FFO per share and Unit basic

 

$

3.27

 

 

$

3.52

 

 

$

0.77

 

 

$

0.91

 

Normalized FFO per share and Unit diluted

 

$

3.26

 

 

$

3.49

 

 

$

0.76

 

 

$

0.91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average Common Shares and Units outstanding basic

 

 

384,794

 

 

 

383,368

 

 

 

384,899

 

 

 

384,039

 

Weighted average Common Shares and Units outstanding diluted

 

 

385,874

 

 

 

386,333

 

 

 

385,756

 

 

 

387,143

 

 

Note: See Adjustments from FFO to Normalized FFO for additional detail regarding the adjustments from FFO to Normalized FFO. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms 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


Table of Contents

 

Equity Residential

Consolidated Balance Sheets

(Amounts in thousands except for share amounts)

(Unaudited)

 

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

Land

 

$

5,785,367

 

 

$

5,936,188

 

Depreciable property

 

 

20,920,654

 

 

 

21,319,101

 

Projects under development

 

 

411,134

 

 

 

181,630

 

Land held for development

 

 

86,170

 

 

 

96,688

 

Investment in real estate

 

 

27,203,325

 

 

 

27,533,607

 

Accumulated depreciation

 

 

(7,859,657

)

 

 

(7,276,786

)

Investment in real estate, net

 

 

19,343,668

 

 

 

20,256,821

 

Investments in unconsolidated entities

 

 

52,782

 

 

 

52,238

 

Cash and cash equivalents

 

 

42,591

 

 

 

45,753

 

Restricted deposits

 

 

57,137

 

 

 

71,246

 

Right-of-use assets

 

 

499,287

 

 

 

512,774

 

Other assets

 

 

291,426

 

 

 

233,937

 

Total assets

 

$

20,286,891

 

 

$

21,172,769

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Mortgage notes payable, net

 

$

2,293,890

 

 

$

1,941,610

 

Notes, net

 

 

5,335,536

 

 

 

6,077,513

 

Line of credit and commercial paper

 

 

414,830

 

 

 

1,017,833

 

Accounts payable and accrued expenses

 

 

107,366

 

 

 

94,350

 

Accrued interest payable

 

 

65,896

 

 

 

66,852

 

Lease liabilities

 

 

329,130