Equity Residential Reports Full Year 2018 Results
Business Wire 29-Jan-2019 4:19 PM
Provides Outlook for 2019
Equity Residential (NYSE:EQR) today reported results for the quarter
and year ended December 31, 2018. All per share results are reported as
available to common shares/units on a diluted basis. Earnings Per Share
(EPS), Funds From Operations (FFO) per share and Normalized FFO per
share for the fourth quarter and full years of 2018 and 2017 are
detailed below.
|
|
|
Quarter Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
EPS
|
|
$
|
0.31
|
|
|
$
|
0.34
|
|
|
$
|
1.77
|
|
|
$
|
1.63
|
|
FFO per share
|
|
$
|
0.84
|
|
|
$
|
0.82
|
|
|
$
|
3.14
|
|
|
$
|
3.15
|
|
Normalized FFO per share
|
|
$
|
0.84
|
|
|
$
|
0.83
|
|
|
$
|
3.25
|
|
|
$
|
3.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
"We are pleased to have delivered same store revenue growth at the top
end of our original guidance range and solid Normalized FFO growth in
2018. We saw a modest acceleration in our same store revenue results in
the fourth quarter of 2018 and expect that to continue into 2019. Our
outlook for 2019 is based on an expectation that continued economic
growth will create the demand to absorb the elevated levels of new
supply in many of our markets," said Mark J. Parrell, Equity
Residential's President and CEO.
"Our markets continue to be attractive places for employers to locate
and expand their businesses to draw on a diverse and talented pool of
workers, resulting in strong demand for our product," Mr. Parrell
continued. "We expect that our outstanding people and well-positioned
portfolio will deliver a superior customer experience to our residents
and excellent risk adjusted returns to our shareholders."
Highlights
-
The Company produced same store revenue growth of 2.3% for the full
year 2018, with Physical Occupancy of 96.2% and renewal rate growth of
4.9%. The Company also produced the highest resident retention in its
history.
-
The Company produced same store revenue growth of 2.6% in the fourth
quarter of 2018 with Physical Occupancy of 96.2% and renewal rate
growth of 5.2%.
-
During the fourth quarter of 2018, the Company completed the
development of its 100K property in Washington, D.C. and completed the
stabilization of its Cascade development property in Seattle.
-
During the fourth quarter of 2018, the Company issued $400.0 million
of 10-year unsecured notes at a coupon of 4.15%. These were issued as
"green" bonds and are the first green bond issuance from an apartment
REIT.
Fourth Quarter 2018
EPS for the fourth quarter of 2018 was $0.31 compared to $0.34 in the
fourth quarter of 2017. The difference is due primarily to lower
property sale gains in the fourth quarter of 2018, the various
adjustment items listed on page 24 of this release and the items
described below.
FFO as defined by Nareit (National Association of Real Estate Investment
Trusts) was $0.84 per share for the fourth quarter of 2018 compared to
$0.82 per share in the fourth quarter of 2017. The difference is due
primarily to the various adjustment items listed on page 24 of this
release and the items described below.
Normalized FFO for the fourth quarter of 2018 was $0.84 per share
compared to $0.83 per share in the fourth quarter of 2017. 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 $0.01 per share from Lease-Up NOI
offset by a negative impact of approximately $0.01 per share from
other non-same store NOI primarily driven by the casualty losses
described below;
-
A positive impact of approximately $0.01 per share from lower total
interest expense;
-
A negative impact of approximately $0.01 per share from lower NOI as a
result of the Company's 2018 and 2017 transaction activity; and
-
A negative impact of approximately $0.01 per share from higher
corporate overhead (property management and general and administrative
expenses).
The Company's fourth quarter 2018 financial results had a negative
impact of approximately $0.01 per share primarily from certain casualty
losses driven by rainstorm damage to assets in its Washington, D.C. area
portfolio.
The Company has a glossary of defined terms and related reconciliations
of Non-GAAP financial measures on pages 26 through 30 of this release.
Reconciliations and definitions of FFO and Normalized FFO are provided
on pages 7, 27 and 28 of this release and the Company has included
guidance for 2019 Normalized FFO per share on page 25 and 2019 FFO per
share and 2019 EPS on page 28 of this release.
Year Ended December 31, 2018
EPS for the year ended December 31, 2018 was $1.77 compared to $1.63 in
the year ended December 31, 2017. The difference is due primarily to
higher property sale gains offset by higher depreciation expense in the
year ended December 31, 2018, the various adjustment items listed on
page 24 of this release and the items described below.
FFO was $3.14 per share for the year ended December 31, 2018 compared to
$3.15 per share in the year ended December 31, 2017. The difference is
due primarily to the various adjustment items listed on page 24 of this
release and the items described below.
Normalized FFO for the year ended December 31, 2018 was $3.25 per share
compared to $3.13 per share in the year ended December 31, 2017. The
difference is due primarily to:
-
A positive impact of approximately $0.07 per share from increased same
store NOI;
-
A positive impact of approximately $0.10 per share from Lease-Up NOI
and other non-same store NOI;
-
A negative impact of approximately $0.01 per share from lower NOI as a
result of the Company's 2018 and 2017 transaction activity;
-
A negative impact of approximately $0.01 per share from higher total
interest expense; and
-
A negative impact of approximately $0.03 per share from other items
including higher corporate overhead (property management and general
and administrative expenses).
The Company's full year 2018 financial results had a negative impact of
approximately $0.01 per share primarily from certain casualty losses
driven by rainstorm damage to assets in its Washington, D.C. area
portfolio.
Same Store Results
The following table provides the increases for same store
results/statistics for the fourth quarter 2018 to fourth quarter 2017
comparison, which includes 73,992 apartment units, and for the full year
2018 to full year 2017 comparison, which includes 71,721 apartment
units. The Company's Physical Occupancy was 96.2% for both the fourth
quarter of 2018 and the full year of 2018.
|
|
|
Fourth Quarter 2018 vs.
|
|
|
Full Year 2018 vs.
|
|
|
|
Fourth Quarter 2017
|
|
|
Full Year 2017
|
|
Revenues
|
|
2.6%
|
|
|
2.3%
|
|
Expenses
|
|
4.2%
|
|
|
3.6%
|
|
NOI
|
|
1.9%
|
|
|
1.7%
|
|
Average Rental Rate
|
|
2.5%
|
|
|
2.0%
|
|
|
|
|
|
|
|
Investment Activity
The Company did not acquire or sell any apartment properties during the
fourth quarter of 2018.
During the full year 2018, the Company acquired five apartment
properties consisting of 1,478 apartment units for an aggregate purchase
price of approximately $707.0 million at a weighted average Acquisition
Capitalization Rate of 4.4%. During the full year 2018, the Company sold
five apartment properties consisting of 1,292 apartment units for an
aggregate sale price of approximately $706.1 million at a weighted
average Disposition Yield of 4.1%, generating an Unlevered IRR of 8.7%.
During 2018, the Company sold a land parcel in suburban Maryland for
approximately $2.7 million.
In January 2019, the Company acquired three apartment properties
consisting of 579 apartment units for an aggregate purchase price of
approximately $258.7 million at a weighted average Acquisition
Capitalization Rate of 4.6%. The properties are located in Denver,
Seattle and Jersey City, New Jersey.
Capital Markets Activity
On November 30, 2018, the Company issued $400.0 million of 10-year
unsecured notes at a coupon of 4.15%. After the effect of the
termination of certain interest rate hedges, underwriters' fees and
other costs associated with the offering, the all-in effective rate of
the notes is approximately 3.85%. These notes were issued as "green"
bonds and as a result, the Company will allocate an amount equal to the
net proceeds of approximately $396.7 million from this issuance to one
or more eligible green projects, such as its recently developed 855
Brannan community in San Francisco, which received LEED Home Platinum
certification.
First Quarter 2019 Guidance
The Company has established guidance ranges for the first quarter of
2019 EPS, FFO per share and Normalized FFO per share as listed below:
|
|
|
Q1 2019
|
|
|
|
Guidance
|
|
EPS
|
|
$0.25 to $0.29
|
|
FFO per share
|
|
$0.77 to $0.81
|
|
Normalized FFO per share
|
|
$0.78 to $0.82
|
|
|
|
|
The difference between the fourth quarter 2018 EPS of $0.31 and the
first quarter 2019 guidance midpoint of $0.27 is due primarily to the
items described below.
The difference between the fourth quarter 2018 FFO of $0.84 per share
and the first quarter 2019 guidance midpoint of $0.79 per share is due
primarily to the items described below.
The difference between the fourth quarter 2018 Normalized FFO of $0.84
per share and the first quarter 2019 guidance midpoint of $0.80 per
share is due primarily to:
-
A positive impact of approximately $0.01 per share from higher NOI as
a result of the Company's 2019 and 2018 transaction activity;
-
A negative impact of approximately $0.02 per share from lower same
store NOI;
-
A negative impact of approximately $0.01 per share from higher total
interest expense; and
-
A negative impact of approximately $0.02 per share from other items
including higher corporate overhead (property management and general
and administrative expenses).
Full Year 2019 Guidance
The Company is providing guidance for its full year 2019 same store
operating performance, EPS, FFO per share, Normalized FFO per share,
transactions and debt offerings as listed below:
|
Same Store:
|
|
|
|
Physical Occupancy
|
|
96.2%
|
|
Revenue change
|
|
2.2% to 3.2%
|
|
Expense change
|
|
3.5% to 4.5%
|
|
NOI change
|
|
1.5% to 3.0%
|
|
|
|
|
|
EPS
|
|
$1.88 to $1.98
|
|
FFO per share
|
|
$3.26 to $3.36
|
|
Normalized FFO per share
|
|
$3.34 to $3.44
|
|
|
|
|
|
Transactions:
|
|
|
|
Consolidated rental acquisitions
|
|
$700.0 million
|
|
Consolidated rental dispositions
|
|
$700.0 million
|
|
Transaction Accretion (Dilution)
|
|
(25 basis points)
|
|
|
|
|
|
Debt Offerings
|
|
$700.0 million to $900.0 million
|
|
|
|
|
The difference between the Company's full year 2018 EPS of $1.77 and the
midpoint of the full year 2019 guidance range of $1.93 is due primarily
to lower expected property sale gains, lower expected debt
extinguishment costs and the items described below.
The difference between the Company's full year 2018 FFO of $3.14 per
share and the midpoint of the full year 2019 guidance range of $3.31 per
share is due primarily to lower expected debt extinguishment costs and
the items described below.
The difference between the Company's full year 2018 Normalized FFO of
$3.25 per share and the midpoint of the full year 2019 guidance range of
$3.39 per share is due primarily to:
-
A positive impact of approximately $0.10 per share from increased same
store NOI;
-
A positive impact of approximately $0.04 per share from Lease-Up NOI
and other non-same store NOI;
-
A positive impact of approximately $0.01 per share from higher NOI as
a result of the Company's 2019 and 2018 transaction activity; and
-
A negative impact of approximately $0.01 per share from higher total
interest expense.
First Quarter 2019 Earnings and Conference Call
Equity Residential expects to announce its first quarter 2019 results on
Tuesday, April 30, 2019 and host a conference call to discuss those
results at 10:00 a.m. CT on Wednesday, May 1, 2019.
About Equity Residential
Equity Residential is an S&P 500 company focused on the acquisition,
development and management of rental apartment properties located in
urban and high-density suburban markets where today's renters want to
live, work and play. Equity Residential owns or has investments in 307
properties consisting of 79,482 apartment units, primarily 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. 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 30, 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,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income
|
|
$
|
2,577,681
|
|
|
$
|
2,470,689
|
|
|
$
|
652,553
|
|
|
$
|
630,519
|
|
|
Fee and asset management
|
|
|
753
|
|
|
|
717
|
|
|
|
190
|
|
|
|
185
|
|
|
Total revenues
|
|
|
2,578,434
|
|
|
|
2,471,406
|
|
|
|
652,743
|
|
|
|
630,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and maintenance
|
|
|
429,335
|
|
|
|
405,281
|
|
|
|
106,848
|
|
|
|
98,636
|
|
|
Real estate taxes and insurance
|
|
|
357,814
|
|
|
|
335,495
|
|
|
|
89,030
|
|
|
|
82,177
|
|
|
Property management
|
|
|
92,485
|
|
|
|
85,493
|
|
|
|
23,310
|
|
|
|
20,791
|
|
|
General and administrative
|
|
|
53,813
|
|
|
|
52,224
|
|
|
|
12,393
|
|
|
|
11,858
|
|
|
Depreciation
|
|
|
785,725
|
|
|
|
743,749
|
|
|
|
201,856
|
|
|
|
200,785
|
|
|
Impairment
|
|
|
702
|
|
|
|
1,693
|
|
|
|
—
|
|
|
|
1,693
|
|
|
Total expenses
|
|
|
1,719,874
|
|
|
|
1,623,935
|
|
|
|
433,437
|
|
|
|
415,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
858,560
|
|
|
|
847,471
|
|
|
|
219,306
|
|
|
|
214,764
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income
|
|
|
15,317
|
|
|
|
6,136
|
|
|
|
457
|
|
|
|
428
|
|
|
Other expenses
|
|
|
(17,267
|
)
|
|
|
(5,186
|
)
|
|
|
(2,396
|
)
|
|
|
(2,026
|
)
|
|
Interest:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense incurred, net
|
|
|
(413,360
|
)
|
|
|
(383,890
|
)
|
|
|
(91,906
|
)
|
|
|
(95,311
|
)
|
|
Amortization of deferred financing costs
|
|
|
(11,310
|
)
|
|
|
(8,526
|
)
|
|
|
(2,256
|
)
|
|
|
(2,079
|
)
|
|
Income before income and other taxes, income (loss) from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investments in unconsolidated entities and net gain (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
on sales of real estate properties and land parcels
|
|
|
431,940
|
|
|
|
456,005
|
|
|
|
123,205
|
|
|
|
115,776
|
|
|
Income and other tax (expense) benefit
|
|
|
(878
|
)
|
|
|
(478
|
)
|
|
|
(111
|
)
|
|
|
232
|
|
|
Income (loss) from investments in unconsolidated entities
|
|
|
(3,667
|
)
|
|
|
(3,370
|
)
|
|
|
(674
|
)
|
|
|
(1,217
|
)
|
|
Net gain (loss) on sales of real estate properties
|
|
|
256,810
|
|
|
|
157,057
|
|
|
|
(24
|
)
|
|
|
15,296
|
|
|
Net gain (loss) on sales of land parcels
|
|
|
987
|
|
|
|
19,167
|
|
|
|
(8
|
)
|
|
|
(3
|
)
|
|
Net income
|
|
|
685,192
|
|
|
|
628,381
|
|
|
|
122,388
|
|
|
|
130,084
|
|
|
Net (income) loss attributable to Noncontrolling Interests:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Partnership
|
|
|
(24,939
|
)
|
|
|
(22,604
|
)
|
|
|
(4,422
|
)
|
|
|
(4,673
|
)
|
|
Partially Owned Properties
|
|
|
(2,718
|
)
|
|
|
(2,323
|
)
|
|
|
(779
|
)
|
|
|
31
|
|
|
Net income attributable to controlling interests
|
|
|
657,535
|
|
|
|
603,454
|
|
|
|
117,187
|
|
|
|
125,442
|
|
|
Preferred distributions
|
|
|
(3,090
|
)
|
|
|
(3,091
|
)
|
|
|
(772
|
)
|
|
|
(773
|
)
|
|
Net income available to Common Shares
|
|
$
|
654,445
|
|
|
$
|
600,363
|
|
|
$
|
116,415
|
|
|
$
|
124,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share – basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Common Shares
|
|
$
|
1.78
|
|
|
$
|
1.64
|
|
|
$
|
0.32
|
|
|
$
|
0.34
|
|
|
Weighted average Common Shares outstanding
|
|
|
368,052
|
|
|
|
366,968
|
|
|
|
368,445
|
|
|
|
367,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share – diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Common Shares
|
|
$
|
1.77
|
|
|
$
|
1.63
|
|
|
$
|
0.31
|
|
|
$
|
0.34
|
|
|
Weighted average Common Shares outstanding
|
|
|
383,695
|
|
|
|
382,678
|
|
|
|
384,296
|
|
|
|
383,105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions declared per Common Share outstanding
|
|
$
|
2.16
|
|
|
$
|
2.015
|
|
|
$
|
0.54
|
|
|
$
|
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,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
Net income
|
|
$
|
685,192
|
|
|
$
|
628,381
|
|
|
$
|
122,388
|
|
|
$
|
130,084
|
|
|
Net (income) loss attributable to Noncontrolling Interests –
Partially
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned Properties
|
|
|
(2,718
|
)
|
|
|
(2,323
|
)
|
|
|
(779
|
)
|
|
|
31
|
|
|
Preferred distributions
|
|
|
(3,090
|
)
|
|
|
(3,091
|
)
|
|
|
(772
|
)
|
|
|
(773
|
)
|
|
Net income available to Common Shares and Units
|
|
|
679,384
|
|
|
|
622,967
|
|
|
|
120,837
|
|
|
|
129,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
785,725
|
|
|
|
743,749
|
|
|
|
201,856
|
|
|
|
200,785
|
|
|
Depreciation – Non-real estate additions
|
|
|
(4,561
|
)
|
|
|
(5,023
|
)
|
|
|
(1,164
|
)
|
|
|
(1,215
|
)
|
|
Depreciation – Partially Owned Properties
|
|
|
(3,740
|
)
|
|
|
(4,526
|
)
|
|
|
(903
|
)
|
|
|
(2,026
|
)
|
|
Depreciation – Unconsolidated Properties
|
|
|
4,451
|
|
|
|
4,577
|
|
|
|
1,004
|
|
|
|
1,147
|
|
|
Net (gain) loss on sales of unconsolidated entities - operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
assets
|
|
|
—
|
|
|
|
(73
|
)
|
|
|
—
|
|
|
|
(5
|
)
|
|
Net (gain) loss on sales of real estate properties
|
|
|
(256,810
|
)
|
|
|
(157,057
|
)
|
|
|
24
|
|
|
|
(15,296
|
)
|
|
Noncontrolling Interests share of gain (loss) on sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of real estate properties
|
|
|
(284
|
)
|
|
|
290
|
|
|
|
—
|
|
|
|
290
|
|
|
Impairment – operating assets
|
|
|
702
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
FFO available to Common Shares and Units
|
|
|
1,204,867
|
|
|
|
1,204,904
|
|
|
|
321,654
|
|
|
|
313,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments (see page 24 for additional detail):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment – non-operating assets
|
|
|
—
|
|
|
|
1,693
|
|
|
|
—
|
|
|
|
1,693
|
|
|
Write-off of pursuit costs
|
|
|
4,450
|
|
|
|
3,106
|
|
|
|
1,325
|
|
|
|
777
|
|
|
Debt extinguishment and preferred share redemption (gains)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
losses
|
|
|
41,335
|
|
|
|
11,789
|
|
|
|
193
|
|
|
|
—
|
|
|
Non-operating asset (gains) losses
|
|
|
(161
|
)
|
|
|
(18,884
|
)
|
|
|
94
|
|
|
|
471
|
|
|
Other miscellaneous items
|
|
|
(1,781
|
)
|
|
|
(3,371
|
)
|
|
|
827
|
|
|
|
824
|
|
|
Normalized FFO available to Common Shares and Units
|
|
$
|
1,248,710
|
|
|
$
|
1,199,237
|
|
|
$
|
324,093
|
|
|
$
|
316,787
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO
|
|
$
|
1,207,957
|
|
|
$
|
1,207,995
|
|
|
$
|
322,426
|
|
|
$
|
313,795
|
|
|
Preferred distributions
|
|
|
(3,090
|
)
|
|
|
(3,091
|
)
|
|
|
(772
|
)
|
|
|
(773
|
)
|
|
FFO available to Common Shares and Units
|
|
$
|
1,204,867
|
|
|
$
|
1,204,904
|
|
|
$
|
321,654
|
|
|
$
|
313,022
|
|
|
FFO per share and Unit – basic
|
|
$
|
3.16
|
|
|
$
|
3.17
|
|
|
$
|
0.84
|
|
|
$
|
0.82
|
|
|
FFO per share and Unit – diluted
|
|
$
|
3.14
|
|
|
$
|
3.15
|
|
|
$
|
0.84
|
|
|
$
|
0.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized FFO
|
|
$
|
1,251,800
|
|
|
$
|
1,202,328
|
|
|
$
|
324,865
|
|
|
$
|
317,560
|
|
|
Preferred distributions
|
|
|
(3,090
|
)
|
|
|
(3,091
|
)
|
|
|
(772
|
)
|
|
|
(773
|
)
|
|
Normalized FFO available to Common Shares and Units
|
|
$
|
1,248,710
|
|
|
$
|
1,199,237
|
|
|
$
|
324,093
|
|
|
$
|
316,787
|
|
|
Normalized FFO per share and Unit – basic
|
|
$
|
3.28
|
|
|
$
|
3.16
|
|
|
$
|
0.85
|
|
|
$
|
0.83
|
|
|
Normalized FFO per share and Unit – diluted
|
|
$
|
3.25
|
|
|
$
|
3.13
|
|
|
$
|
0.84
|
|
|
$
|
0.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average Common Shares and Units outstanding – basic
|
|
|
380,921
|
|
|
|
379,870
|
|
|
|
381,306
|
|
|
|
380,325
|
|
|
Weighted average Common Shares and Units outstanding – diluted
|
|
|
383,695
|
|
|
|
382,678
|
|
|
|
384,296
|
|
|
|
383,105
|
|
Note: See page 24 for additional detail regarding the adjustments
from FFO to Normalized FFO. See pages 26 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,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Land
|
|
$
|
5,875,803
|
|
|
$
|
5,996,024
|
|
|
Depreciable property
|
|
|
20,435,901
|
|
|
|
19,768,362
|
|
|
Projects under development
|
|
|
109,409
|
|
|
|
163,547
|
|
|
Land held for development
|
|
|
89,909
|
|
|
|
98,963
|
|
|
Investment in real estate
|
|
|
26,511,022
|
|
|
|
26,026,896
|
|
|
Accumulated depreciation
|
|
|
(6,696,281
|
)
|
|
|
(6,040,378
|
)
|
|
Investment in real estate, net
|
|
|
19,814,741
|
|
|
|
19,986,518
|
|
|
Investments in unconsolidated entities
|
|
|
58,349
|
|
|
|
58,254
|
|
|
Cash and cash equivalents
|
|
|
47,442
|
|
|
|
50,647
|
|
|
Restricted deposits
|
|
|
68,871
|
|
|
|
50,115
|
|
|
Other assets
|
|
|
404,806
|
|
|
|
425,065
|
|
|
Total assets
|
|
$
|
20,394,209
|
|
|
$
|
20,570,599
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
Mortgage notes payable, net
|
|
$
|
2,385,470
|
|
|
$
|
3,618,722
|
|
|
Notes, net
|
|
|
5,933,286
|
|
|
|
5,038,812
|
|
|
Line of credit and commercial paper
|
|
|
499,183
|
|
|
|
299,757
|
|
|
Accounts payable and accrued expenses
|
|
|
102,471
|
|
|
|
114,766
|
|
|
Accrued interest payable
|
|
|
62,622
|
|
|
|
58,035
|
|
|
Other liabilities
|
|
|
358,563
|
|
|
|
341,852
|
|
|
Security deposits
|
|
|
67,258
|
|
|
|
65,009
|
|
|
Distributions payable
|
|
|
206,601
|
|
|
|
192,828
|
|
|
Total liabilities
|
|
|
9,615,454
|
|
|
|
9,729,781
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable Noncontrolling Interests – Operating Partnership
|
|
|
379,106
|
|
|
|
366,955
|
|
|
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, 2018 and December 31, 2017
|
|
|
37,280
|
|
|
|
37,280
|
|
|
Common Shares of beneficial interest, $0.01 par value;
|
|
|
|
|
|
|
|
|
|
1,000,000,000 shares authorized; 369,405,161 shares issued
|
|
|
|
|
|
|
|
|
|
and outstanding as of December 31, 2018 and 368,018,082
|
|
|
|
|
|
|
|
|
|
shares issued and outstanding as of December 31, 2017
|
|
|
3,694
|
|
|
|
3,680
|
|
|
Paid in capital
|
|
|
8,935,453
|
|
|
|
8,886,586
|
|
|
Retained earnings
|
|
|
1,261,763
|
|
|
|
1,403,530
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
(64,986
|
)
|
|
|
(88,612
|
)
|
|
Total shareholders' equity
|
|
|
10,173,204
|
|
|
|
10,242,464
|
|
|
Noncontrolling Interests:
|
|
|
|
|
|
|
|
|
|
Operating Partnership
|
|
|
228,738
|
|
|
|
226,691
|
|
|
Partially Owned Properties
|
|
|
(2,293
|
)
|
|
|
4,708
|
|
|
Total Noncontrolling Interests
|
|
|
226,445
|
|
|
|
231,399
|
|
|
Total equity
|
|
|
10,399,649
|
|
|
|
10,473,863
|
|
|
Total liabilities and equity
|
|
$
|
20,394,209
|
|
|
$
|
20,570,599
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Residential
|
|
Portfolio Summary
|
|
As of December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of
Stabilized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
Apartment
|
|
|
Budgeted
|
|
|
Rental
|
|
Markets/Metro Areas
|
|
Properties
|
|
|
Units
|
|
|
NOI
|
|
|
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles
|
|
|
70
|
|
|
|
15,968
|
|
|
|
18.5
|
%
|
|
$
|
2,551
|
|
Orange County
|
|
|
13
|
|
|
|
4,028
|
|
|
|
4.3
|
%
|
|
|
2,202
|
|
San Diego
|
|
|
12
|
|
|
|
3,385
|
|
|
|
3.8
|
%
|
|
|
2,376
|
|
Subtotal – Southern California
|
|
|
95
|
|
|
|
23,381
|
|
|
|
26.6
|
%
|
|
|
2,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco
|
|
|
55
|
|
|
|
13,424
|
|
|
|
20.6
|
%
|
|
|
3,219
|
|
Washington DC
|
|
|
49
|
|
|
|
16,050
|
|
|
|
17.1
|
%
|
|
|
2,396
|
|
New York
|
|
|
37
|
|
|
|
9,741
|
|
|
|
15.2
|
%
|
|
|
3,848
|
|
Boston
|
|
|
25
|
|
|
|
6,641
|
|
|
|
10.2
|
%
|
|
|
3,061
|
|
Seattle
|
|
|
41
|
|
|
|
8,438
|
|
|
|
9.6
|
%
|
|
|
2,387
|
|
Denver
|
|
|
2
|
|
|
|
726
|
|
|
|
0.7
|
%
|
|
|
2,088
|
|
Other Markets
|
|
|
1
|
|
|
|
136
|
|
|
|
—
|
%
|
|
|
1,217
|
|
Total
|
|
|
305
|
|
|
|
78,537
|
|
|
|
100.0
|
%
|
|
|
2,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unconsolidated Properties
|
|
|
2
|
|
|
|
945
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand Total
|
|
|
307
|
|
|
|
79,482
|
|
|
|
100.0
|
%
|
|
$
|
2,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Projects under development are not included in the Portfolio
Summary until construction has been completed.
|
|
|
Equity Residential
|
|
|
|
|
|
|
|
|
Portfolio as of December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
Properties
|
|
|
Apartment Units
|
|
|
|
|
|
|
|
|
|
|
Wholly Owned Properties
|
|
|
287
|
|
|
|
74,840
|
|
Master-Leased Properties - Consolidated
|
|
|
1
|
|
|
|
162
|
|
Partially Owned Properties - Consolidated
|
|
|
17
|
|
|
|
3,535
|
|
Partially Owned Properties - Unconsolidated
|
|
|
2
|
|
|
|
945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
307
|
|
|
|
79,482
|
|
|
|
Portfolio Rollforward Q4 2018
|
|
($ in thousands)
|
|
|
|
|
|
Properties
|
|
|
Apartment
Units
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9/30/2018
|
|
|
306
|
|
|
|
79,260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completed Developments - Consolidated
|
|
|
|
|
1
|
|
|
|
222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2018
|
|
|
307
|
|
|
|
79,482
|
|
|
|
Portfolio Rollforward 2018
|
|
($ in thousands)
|
|
|
|
|
|
|
|
Properties
|
|
|
Apartment
Units
|
|
|
Purchase Price
|
|
|
Acquisition
Cap Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2017
|
|
|
305
|
|
|
|
78,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental Properties
|
|
|
|
|
5
|
|
|
|
1,478
|
|
|
$
|
707,005
|
|
|
|
4.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Price
|
|
|
Disposition
Yield
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dispositions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental Properties
|
|
|
|
|
(5
|
)
|
|
|
(1,292
|
)
|
|
$
|
(706,120
|
)
|
|
|
(4.1
|
%)
|
|
Land Parcels
|
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
(2,700
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completed Developments - Consolidated
|
|
|
|
|
2
|
|
|
|
671
|
|
|
|
|
|
|
|
|
|
|
Configuration Changes
|
|
|
|
|
—
|
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2018
|
|
|
307
|
|
|
|
79,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Residential
|
|
|
|
Fourth Quarter 2018 vs. Fourth Quarter 2017
|
|
Same Store Results/Statistics for 73,992 Same Store Apartment
Units
|
|
$ in thousands (except for Average Rental Rate)
|
|
|
|
|
|
|
|
|
|
|
|
Results
|
|
|
Statistics
|
|
|
Description
|
|
Revenues
|
|
|
Expenses
|
|
|
NOI
|
|
|
Average
Rental
Rate
|
|
|
Physical
Occupancy
|
|
|
Turnover
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2018
|
|
$
|
616,496
|
|
|
$
|
180,218
|
|
|
$
|
436,278
|
|
|
$
|
2,784
|
|
|
|
96.2
|
%
|
|
|
10.6
|
%
|
|
Q4 2017
|
|
$
|
601,061
|
|
|
$
|
173,033
|
|
|
$
|
428,028
|
|
|
$
|
2,717
|
|
|
|
95.9
|
%
|
|
|
11.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
$
|
15,435
|
|
|
$
|
7,185
|
|
|
$
|
8,250
|
|
|
$
|
67
|
|
|
|
0.3
|
%
|
|
|
(0.6
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
|
2.6
|
%
|
|
|
4.2
|
%
|
|
|
1.9
|
%
|
|
|
2.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter 2018 vs. Third Quarter 2018
|
|
Same Store Results/Statistics for 76,477 Same Store Apartment
Units
|
|
$ in thousands (except for Average Rental Rate)
|
|
|
|
|
|
|
|
|
|
|
|
Results
|
|
|
Statistics
|
|
|
Description
|
|
Revenues
|
|
|
Expenses
|
|
|
NOI
|
|
|
Average
Rental
Rate
|
|
|
Physical
Occupancy
|
|
|
Turnover
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2018
|
|
$
|
638,695
|
|
|
$
|
187,979
|
|
|
$
|
450,716
|
|
|
$
|
2,791
|
|
|
|
96.2
|
%
|
|
|
10.7
|
%
|
|
Q3 2018
|
|
$
|
639,995
|
|
|
$
|
193,320
|
|
|
$
|
446,675
|
|
|
$
|
2,789
|
|
|
|
96.2
|
%
|
|
|
16.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
$
|
(1,300
|
)
|
|
$
|
(5,341
|
)
|
|
$
|
4,041
|
|
|
$
|
2
|
|
|
|
0.0
|
%
|
|
|
(5.7
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
|
(0.2
|
%)
|
|
|
(2.8
|
%)
|
|
|
0.9
|
%
|
|
|
0.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 vs. 2017
|
|
Same Store Results/Statistics for 71,721 Same Store Apartment
Units
|
|
$ in thousands (except for Average Rental Rate)
|
|
|
|
|
|
Results
|
|
|
Statistics
|
|
|
Description
|
|
Revenues
|
|
|
Expenses
|
|
|
NOI
|
|
|
Average
Rental
Rate
|
|
|
Physical
Occupancy
|
|
|
Turnover
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
$
|
2,363,491
|
|
|
$
|
705,890
|
|
|
$
|
1,657,601
|
|
|
$
|
2,748
|
|
|
|
96.2
|
%
|
|
|
51.1
|
%
|
|
2017
|
|
$
|
2,311,240
|
|
|
$
|
681,198
|
|
|
$
|
1,630,042
|
|
|
$
|
2,693
|
|
|
|
96.0
|
%
|
|
|
53.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
$
|
52,251
|
|
|
$
|
24,692
|
|
|
$
|
27,559
|
|
|
$
|
55
|
|
|
|
0.2
|
%
|
|
|
(2.3
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
|
2.3
|
%
|
|
|
3.6
|
%
|
|
|
1.7
|
%
|
|
|
2.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: See page 29 for reconciliations from operating income.
|
|
|
Equity Residential
|
|
Fourth Quarter 2018 vs. Fourth Quarter 2017
|
|
Same Store Results/Statistics by Market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Year's Quarter
|
|
|
Markets/Metro Areas
|
|
Apartment
Units
|
|
|
Q4 2018
% of
Actual
NOI
|
|
|
Q4 2018
Average
Rental
Rate
|
|
|
Q4 2018
Weighted
Average
Physical
Occupancy %
|
|
|
Q4 2018
Turnover
|
|
|
Revenues
|
|
|
Expenses
|
|
|
NOI
|
|
|
Average
Rental
Rate
|
|
|
Physical
Occupancy
|
|
|
Turnover
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles
|
|
|
15,371
|
|
|
|
18.7
|
%
|
|
$
|
2,558
|
|
|
|
96.2
|
%
|
|
|
12.7
|
%
|
|
|
4.4
|
%
|
|
|
7.5
|
%
|
|
|
3.2
|
%
|
|
|
4.1
|
%
|
|
|
0.5
|
%
|
|
|
(0.4
|
%)
|
|
Orange County
|
|
|
4,028
|
|
|
|
4.5
|
%
|
|
|
2,202
|
|
|
|
96.2
|
%
|
|
|
10.5
|
%
|
|
|
3.9
|
%
|
|
|
3.1
|
%
|
|
|
4.2
|
%
|
|
|
3.7
|
%
|
|
|
0.3
|
%
|
|
|
(0.1
|
%)
|
|
San Diego
|
|
|
3,385
|
|
|
|
4.0
|
%
|
|
|
2,376
|
|
|
|
96.3
|
%
|
|
|
13.8
|
%
|
|
|
3.9
|
%
|
|
|
6.7
|
%
|
|
|
2.9
|
%
|
|
|
3.8
|
%
|
|
|
0.3
|
%
|
|
|
(0.3
|
%)
|
|
Subtotal – Southern California
|
|
|
22,784
|
|
|
|
27.2
|
%
|
|
|
2,468
|
|
|
|
96.2
|
%
|
|
|
12.5
|
%
|
|
|
4.3
|
%
|
|
|
6.8
|
%
|
|
|
3.4
|
%
|
|
|
4.0
|
%
|
|
|
0.4
|
%
|
|
|
(0.3
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco
|
|
|
12,975
|
|
|
|
21.1
|
%
|
|
|
3,183
|
|
|
|
95.6
|
%
|
|
|
11.1
|
%
|
|
|
3.2
|
%
|
|
|
(4.7
|
%)
|
|
|
5.8
|
%
|
|
|
3.5
|
%
|
|
|
(0.2
|
%)
|
|
|
(0.5
|
%)
|
|
Washington DC
|
|
|
15,492
|
|
|
|
17.5
|
%
|
|
|
2,386
|
|
|
|
96.4
|
%
|
|
|
10.0
|
%
|
|
|
1.2
|
%
|
|
|
3.6
|
%
|
|
|
0.2
|
%
|
|
|
1.4
|
%
|
|
|
(0.1
|
%)
|
|
|
0.2
|
%
|
|
New York
|
|
|
9,501
|
|
|
|
16.0
|
%
|
|
|
3,857
|
|
|
|
96.7
|
%
|
|
|
7.4
|
%
|
|
|
1.3
|
%
|
|
|
8.0
|
%
|
|
|
(2.6
|
%)
|
|
|
1.0
|
%
|
|
|
0.3
|
%
|
|
|
(0.4
|
%)
|
|
Boston
|
|
|
6,009
|
|
|
|
9.7
|
%
|
|
|
3,043
|
|
|
|
96.1
|
%
|
|
|
9.0
|
%
|
|
|
2.6
|
%
|
|
|
4.1
|
%
|
|
|
2.0
|
%
|
|
|
2.1
|
%
|
|
|
0.3
|
%
|
|
|
(1.3
|
%)
|
|
Seattle
|
|
|
7,095
|
|
|
|
8.4
|
%
|
|
|
2,316
|
|
|
|
96.1
|
%
|
|
|
11.3
|
%
|
|
|
1.5
|
%
|
|
|
4.7
|
%
|
|
|
0.4
|
%
|
|
|
1.0
|
%
|
|
|
1.1
|
%
|
|
|
(2.4
|
%)
|
|
Other Markets
|
|
|
136
|
|
|
|
0.1
|
%
|
|
|
1,217
|
|
|
|
97.8
|
%
|
|
|
6.6
|
%
|
|
|
6.9
|
%
|
|
|
(1.9
|
%)
|
|
|
11.4
|
%
|
|
|
5.2
|
%
|
|
|
1.7
|
%
|
|
|
(5.2
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
73,992
|
|
|
|
100.0
|
%
|
|
$
|
2,784
|
|
|
|
96.2
|
%
|
|
|
10.6
|
%
|
|
|
2.6
|
%
|
|
|
4.2
|
%
|
|
|
1.9
|
%
|
|
|
2.5
|
%
|
|
|
0.3
|
%
|
|
|
(0.6
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Residential
|
|
Fourth Quarter 2018 vs. Third Quarter 2018
|
|
Same Store Results/Statistics by Market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Quarter
|
|
|
Markets/Metro Areas
|
|
Apartment
Units
|
|
|
Q4 2018
% of
Actual
NOI
|
|
|
Q4 2018
Average
Rental
Rate
|
|
|
Q4 2018
Weighted
Average
Physical
Occupancy %
|
|
|
Q4 2018
Turnover
|
|
|
Revenues
|
|
|
Expenses
|
|
|
NOI
|
|
|
Average
Rental
Rate
|
|
|
Physical
Occupancy
|
|
|
Turnover
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles
|
|
|
15,968
|
|
|
|
18.6
|
%
|
|
$
|
2,551
|
|
|
|
96.3
|
%
|
|
|
12.8
|
%
|
|
|
(0.2
|
%)
|
|
|
(0.1
|
%)
|
|
|
(0.3
|
%)
|
|
|
0.6
|
%
|
|
|
(0.4
|
%)
|
|
|
(4.3
|
%)
|
|
Orange County
|
|
|
4,028
|
|
|
|
4.4
|
%
|
|
|
2,202
|
|
|
|
96.2
|
%
|
|
|
10.5
|
%
|
|
|
0.0
|
%
|
|
|
(2.3
|
%)
|
|
|
0.7
|
%
|
|
|
0.1
|
%
|
|
|
0.0
|
%
|
|
|
(6.4
|
%)
|
|
San Diego
|
|
|
3,385
|
|
|
|
3.8
|
%
|
|
|
2,376
|
|
|
|
96.3
|
%
|
|
|
13.8
|
%
|
|
|
0.5
|
%
|
|
|
(3.1
|
%)
|
|
|
1.8
|
%
|
|
|
1.2
|
%
|
|
|
(0.4
|
%)
|
|
|
(4.3
|
%)
|
|
Subtotal – Southern California
|
|
|
23,381
|
|
|
|
26.8
|
%
|
|
|
2,465
|
|
|
|
96.2
|
%
|
|
|
12.5
|
%
|
|
|
(0.1
|
%)
|
|
|
(0.8
|
%)
|
|
|
0.2
|
%
|
|
|
0.6
|
%
|
|
|
(0.4
|
%)
|
|
|
(4.8
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco
|
|
|
13,424
|
|
|
|
21.2
|
%
|
|
|
3,207
|
|
|
|
95.6
|
%
|
|
|
11.0
|
%
|
|
|
0.1
|
%
|
|
|
(7.3
|
%)
|
|
|
2.7
|
%
|
|
|
0.3
|
%
|
|
|
(0.1
|
%)
|
|
|
(5.6
|
%)
|
|
Washington DC
|
|
|
15,666
|
|
|
|
17.2
|
%
|
|
|
2,390
|
|
|
|
96.4
|
%
|
|
|
10.0
|
%
|
|
|
(0.5
|
%)
|
|
|
(5.8
|
%)
|
|
|
1.9
|
%
|
|
|
(0.5
|
%)
|
|
|
0.1
|
%
|
|
|
(6.8
|
%)
|
|
New York
|
|
|
9,741
|
|
|
|
15.8
|
%
|
|
|
3,848
|
|
|
|
96.6
|
%
|
|
|
7.5
|
%
|
|
|
(0.5
|
%)
|
|
|
0.8
|
%
|
|
|
(1.4
|
%)
|
|
|
(0.2
|
%)
|
|
|
(0.2
|
%)
|
|
|
(5.4
|
%)
|
|
Boston
|
|
|
6,169
|
|
|
|
9.6
|
%
|
|
|
3,059
|
|
|
|
96.0
|
%
|
|
|
9.1
|
%
|
|
|
0.7
|
%
|
|
|
(2.5
|
%)
|
|
|
2.0
|
%
|
|
|
0.0
|
%
|
|
|
0.4
|
%
|
|
|
(9.1
|
%)
|
|
Seattle
|
|
|
7,960
|
|
|
|
9.3
|
%
|
|
|
2,365
|
|
|
|
96.0
|
%
|
|
|
11.6
|
%
|
|
|
(0.9
|
%)
|
|
|
(3.3
|
%)
|
|
|
0.0
|
%
|
|
|
(0.2
|
%)
|
|
|
0.4
|
%
|
|
|
(4.1
|
%)
|
|
Other Markets
|
|
|
136
|
|
|
|
0.1
|
%
|
|
|
1,217
|
|
|
|
97.8
|
%
|
|
|
6.6
|
%
|
|
|
0.4
|
%
|
|
|
(8.7
|
%)
|
|
|
5.1
|
%
|
|
|
1.2
|
%
|
|
|
(0.7
|
%)
|
|
|
(5.9
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
76,477
|
|
|
|
100.0
|
%
|
|
$
|
2,791
|
|
|
|
96.2
|
%
|
|
|
10.7
|
%
|
|
|
(0.2
|
%)
|
|
|
(2.8
|
%)
|
|
|
0.9
|
%
|
|
|
0.1
|
%
|
|
|
0.0
|
%
|
|
|
(5.7
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Residential
|
|
2018 vs. 2017
|
|
Same Store Results/Statistics by Market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Year
|
|
|
Markets/Metro Areas
|
|
Apartment
Units
|
|
|
2018
% of
Actual
NOI
|
|
|
2018
Average
Rental
Rate
|
|
|
2018
Weighted
Average
Physical
Occupancy %
|
|
|
2018
Turnover
|
|
|
Revenues
|
|
|
Expenses
|
|
|
NOI
|
|
|
Average
Rental
Rate
|
|
|
Physical
Occupancy
|
|
|
Turnover
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles
|
|
|
14,240
|
|
|
|
17.9
|
%
|
|
$
|
2,507
|
|
|
|
96.2
|
%
|
|
|
56.5
|
%
|
|
|
3.6
|
%
|
|
|
4.7
|
%
|
|
|
3.2
|
%
|
|
|
3.6
|
%
|
|
|
0.2
|
%
|
|
|
(2.8
|
%)
|
|
Orange County
|
|
|
3,684
|
|
|
|
4.2
|
%
|
|
|
2,153
|
|
|
|
96.1
|
%
|
|
|
50.2
|
%
|
|
|
3.5
|
%
|
|
|
2.4
|
%
|
|
|
3.9
|
%
|
|
|
3.7
|
%
|
|
|
(0.1
|
%)
|
|
|
(2.0
|
%)
|
|
San Diego
|
|
|
3,385
|
|
|
|
4.1
|
%
|
|
|
2,335
|
|
|
|
96.3
|
%
|
|
|
60.5
|
%
|
|
|
3.9
|
%
|
|
|
4.1
|
%
|
|
|
3.8
|
%
|
|
|
3.8
|
%
|
|
|
0.0
|
%
|
|
|
(3.7
|
%)
|
|
Subtotal – Southern California
|
|
|
21,309
|
|
|
|
26.2
|
%
|
|
|
2,418
|
|
|
|
96.2
|
%
|
|
|
56.1
|
%
|
|
|
3.6
|
%
|
|
|
4.3
|
%
|
|
|
3.4
|
%
|
|
|
3.6
|
%
|
|
|
0.1
|
%
|
|
|
(2.8
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco
|
|
|
12,315
|
|
|
|
20.4
|
%
|
|
|
3,074
|
|
|
|
96.0
|
%
|
|
|
51.2
|
%
|
|
|
2.9
|
%
|
|
|
(2.8
|
%)
|
|
|
4.7
|
%
|
|
|
2.6
|
%
|
|
|
0.2
|
%
|
|
|
(2.8
|
%)
|
|
Washington DC
|
|
|
15,492
|
|
|
|
18.1
|
%
|
|
|
2,379
|
|
|
|
96.3
|
%
|
|
|
49.6
|
%
|
|
|
1.0
|
%
|
|
|
3.6
|
%
|
|
|
(0.1
|
%)
|
|
|
0.8
|
%
|
|
|
0.2
|
%
|
|
|
(0.7
|
%)
|
|
New York
|
|
|
9,501
|
|
|
|
16.7
|
%
|
|
|
3,844
|
|
|
|
96.5
|
%
|
|
|
38.3
|
%
|
|
|
0.8
|
%
|
|
|
6.5
|
%
|
|
|
(2.7
|
%)
|
|
|
0.3
|
%
|
|
|
0.3
|
%
|
|
|
(3.4
|
%)
|
|
Boston
|
|
|
6,009
|
|
|
|
10.0
|
%
|
|
|
3,015
|
|
|
|
95.9
|
%
|
|
|
50.0
|
%
|
|
|
2.5
|
%
|
|
|
4.0
|
%
|
|
|
1.9
|
%
|
|
|
2.1
|
%
|
|
|
0.1
|
%
|
|
|
(2.2
|
%)
|
|
Seattle
|
|
|
6,959
|
|
|
|
8.5
|
%
|
|
|
2,301
|
|
|
|
95.8
|
%
|
|
|
56.9
|
%
|
|
|
2.8
|
%
|
|
|
5.1
|
%
|
|
|
2.0
|
%
|
|
|
2.4
|
%
|
|
|
0.3
|
%
|
|
|
(2.6
|
%)
|
|
Other Markets
|
|
|
136
|
|
|
|
0.1
|
%
|
|
|
1,203
|
|
|
|
98.5
|
%
|
|
|
52.2
|
%
|
|
|
5.5
|
%
|
|
|
0.8
|
%
|
|
|
8.1
|
%
|
|
|
4.6
|
%
|
|
|
0.9
|
%
|
|
|
7.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
71,721
|
|
|
|
100.0
|
%
|
|
$
|
2,748
|
|
|
|
96.2
|
%
|
|
|
51.1
|
%
|
|
|
2.3
|
%
|
|
|
3.6
|
%
|
|
|
1.7
|
%
|
|
|
2.0
|
%
|
|
|
0.2
|
%
|
|
|
(2.3
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Residential
|
|
|
|
Fourth Quarter 2018 vs. Fourth Quarter 2017
|
|
Same Store Operating Expenses for 73,992 Same Store Apartment
Units
|
|
$ in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual
Q4 2018
|
|
|
Actual
Q4 2017
|
|
|
$
Change
|
|
|
%
Change
|
|
|
% of Actual
Q4 2018
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate taxes
|
|
$
|
75,596
|
|
|
$
|
74,758
|
|
|
$
|
838
|
|
|
|
1.1
|
%
|
|
|
41.9
|
%
|
|
On-site payroll
|
|
|
40,935
|
|
|
|
37,904
|
|
|
|
3,031
|
|
|
|
8.0
|
%
|
|
|
22.7
|
%
|
|
Utilities
|
|
|
24,623
|
|
|
|
23,382
|
|
|
|
1,241
|
|
|
|
5.3
|
%
|
|
|
13.7
|
%
|
|
Repairs and maintenance
|
|
|
22,604
|
|
|
|
20,891
|
|
|
|
1,713
|
|
|
|
8.2
|
%
|
|
|
12.5
|
%
|
|
Insurance
|
|
|
4,816
|
|
|
|
4,587
|
|
|
|
229
|
|
|
|
5.0
|
%
|
|
|
2.7
|
%
|
|
Leasing and advertising
|
|
|
2,663
|
|
|
|
2,473
|
|
|
|
190
|
|
|
|
7.7
|
%
|
|
|
1.5
|
%
|
|
Other on-site operating expenses
|
|
|
8,981
|
|
|
|
9,038
|
|
|
|
(57
|
)
|
|
|
(0.6
|
%)
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store operating expenses
|
|
$
|
180,218
|
|
|
$
|
173,033
|
|
|
$
|
7,185
|
|
|
|
4.2
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 vs. 2017
|
|
Same Store Operating Expenses for 71,721 Same Store Apartment
Units
|
|
$ in thousands
|
|
|
|
|
|
Actual
2018
|
|
|
Actual
2017
|
|
|
$
Change
|
|
|
%
Change
|
|
|
% of Actual
2018
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate taxes
|
|
$
|
297,734
|
|
|
$
|
287,999
|
|
|
$
|
9,735
|
|
|
|
3.4
|
%
|
|
|
42.2
|
%
|
|
On-site payroll
|
|
|
156,859
|
|
|
|
150,924
|
|
|
|
5,935
|
|
|
|
3.9
|
%
|
|
|
22.2
|
%
|
|
Utilities
|
|
|
95,761
|
|
|
|
91,630
|
|
|
|
4,131
|
|
|
|
4.5
|
%
|
|
|
13.6
|
%
|
|
Repairs and maintenance
|
|
|
90,424
|
|
|
|
85,685
|
|
|
|
4,739
|
|
|
|
5.5
|
%
|
|
|
12.8
|
%
|
|
Insurance
|
|
|
18,272
|
|
|
|
17,359
|
|
|
|
913
|
|
|
|
5.3
|
%
|
|
|
2.6
|
%
|
|
Leasing and advertising
|
|
|
9,959
|
|
|
|
9,726
|
|
|
|
233
|
|
|
|
2.4
|
%
|
|
|
1.4
|
%
|
|
Other on-site operating expenses
|
|
|
36,881
|
|
|
|
37,875
|
|
|
|
(994
|
)
|
|
|
(2.6
|
%)
|
|
|
5.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store operating expenses
|
|
$
|
705,890
|
|
|
$
|
681,198
|
|
|
$
|
24,692
|
|
|
|
3.6
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: See pages 26 through 30 for the definitions of non-GAAP financial
measures and other terms.
|
|
|
Equity Residential
|
|
|
|
Debt Summary as of December 31, 2018
|
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts (1)
|
|
|
% of Total
|
|
|
Weighted
Average
Rates (1)
|
|
|
Weighted
Average
Maturities
(years)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured
|
|
$
|
2,385,470
|
|
|
|
27.1
|
%
|
|
|
4.15
|
%
|
|
|
6.7
|
|
Unsecured
|
|
|
6,432,469
|
|
|
|
72.9
|
%
|
|
|
4.10
|
%
|
|
|
9.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
8,817,939
|
|
|
|
100.0
|
%
|
|
|
4.12
|
%
|
|
|
8.6
|
|
Fixed Rate Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured – Conventional
|
|
$
|
1,885,407
|
|
|
|
21.4
|
%
|
|
|
4.61
|
%
|
|
|
4.3
|
|
Unsecured – Public
|
|
|
5,485,884
|
|
|
|
62.2
|
%
|
|
|
4.37
|
%
|
|
|
10.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Rate Debt
|
|
|
7,371,291
|
|
|
|
83.6
|
%
|
|
|
4.45
|
%
|
|
|
9.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floating Rate Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured – Conventional
|
|
|
6,357
|
|
|
|
0.1
|
%
|
|
|
1.93
|
%
|
|
|
5.6
|
|
Secured – Tax Exempt
|
|
|
493,706
|
|
|
|
5.6
|
%
|
|
|
2.14
|
%
|
|
|
15.6
|
|
Unsecured – Public (2)
|
|
|
447,402
|
|
|
|
5.1
|
%
|
|
|
2.84
|
%
|
|
|
0.5
|
|
Unsecured – Revolving Credit Facility (3)
|
|
|
—
|
|
|
|
—
|
|
|
|
2.97
|
%
|
|
|
3.0
|
|
Unsecured – Commercial Paper Program (4)
|
|
|
499,183
|
|
|
|
5.6
|
%
|
|
|
2.35
|
%
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floating Rate Debt
|
|
|
1,446,648
|
|
|
|
16.4
|
%
|
|
|
2.46
|
%
|
|
|
5.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
8,817,939
|
|
|
|
100.0
|
%
|
|
|
4.12
|
%
|
|
|
8.6
|
|
(1)
|
|
Net of the effect of any derivative instruments. Weighted average
rates are for the year ended December 31, 2018.
|
|
(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
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 0.125%). Both the spread and the facility
fee are dependent on the Company's senior unsecured credit rating.
As of December 31, 2018, there were no borrowings outstanding under
the facility and $6.7 million was restricted/dedicated to support
letters of credit. In addition, the Company limits its utilization
of the facility in order to maintain liquidity to support its $500.0
million commercial paper program along with certain other
obligations. As a result, the Company had approximately $1.40
billion available under the facility at December 31, 2018.
|
|
(4)
|
|
The Company may borrow up to a maximum of $500.0 million under its
commercial paper program subject to market conditions. The notes
bear interest at various floating rates. At December 31, 2018, the
weighted average maturity of commercial paper outstanding was 22
days.
|
|
|
|
|
Note: The Company capitalized interest of approximately $6.3 million and
$26.3 million during the years ended December 31, 2018 and 2017,
respectively. The Company capitalized interest of approximately $1.8
million and $3.1 million during the quarters ended December 31, 2018 and
2017, respectively.
|
|
|
Equity Residential
|
|
|
|
Debt Maturity Schedule as of December 31, 2018
|
|
($ in thousands)
|
|
|
|
Year
|
|
Fixed
Rate (1)
|
|
|
Floating
Rate (1)
|
|
|
Total
|
|
|
% of Total
|
|
|
Weighted
Average Rates
on Fixed
Rate Debt (1)
|
|
|
Weighted
Average
Rates on
Total Debt (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
$
|
6,731
|
|
|
$
|
968,223
|
|
(2
|
)
|
$
|
974,954
|
|
|
|
10.9
|
%
|
|
|
3.73
|
%
|
|
|
2.86
|
%
|
|
2020
|
|
|
1,128,592
|
|
(3
|
)
|
|
700
|
|
|
|
1,129,292
|
|
|
|
12.7
|
%
|
|
|
5.20
|
%
|
|
|
5.20
|
%
|
|
2021
|
|
|
927,506
|
|
|
|
600
|
|
|
|
928,106
|
|
|
|
10.4
|
%
|
|
|
4.64
|
%
|
|
|
4.64
|
%
|
|
2022
|
|
|
265,341
|
|
|
|
800
|
|
|
|
266,141
|
|
|
|
3.0
|
%
|
|
|
3.26
|
%
|
|
|
3.26
|
%
|
|
2023
|
|
|
1,326,800
|
|
|
|
4,800
|
|
|
|
1,331,600
|
|
|
|
14.9
|
%
|
|
|
3.74
|
%
|
|
|
3.73
|
%
|
|
2024
|
|
|
1,272
|
|
|
|
10,900
|
|
|
|
12,172
|
|
|
|
0.1
|
%
|
|
|
4.79
|
%
|
|
|
2.13
|
%
|
|
2025
|
|
|
451,334
|
|
|
|
13,200
|
|
|
|
464,534
|
|
|
|
5.2
|
%
|
|
|
3.38
|
%
|
|
|
3.33
|
%
|
|
2026
|
|
|
593,424
|
|
|
|
14,500
|
|
|
|
607,924
|
|
|
|
6.8
|
%
|
|
|
3.59
|
%
|
|
|
3.54
|
%
|
|
2027
|
|
|
401,468
|
|
|
|
15,600
|
|
|
|
417,068
|
|
|
|
4.7
|
%
|
|
|
3.26
|
%
|
|
|
3.20
|
%
|
|
2028
|
|
|
901,540
|
|
|
|
48,580
|
|
|
|
950,120
|
|
|
|
10.7
|
%
|
|
|
3.79
|
%
|
|
|
3.69
|
%
|
|
2029+
|
|
|
1,423,430
|
|
|
|
407,420
|
|
|
|
1,830,850
|
|
|
|
20.6
|
%
|
|
|
4.41
|
%
|
|
|
3.83
|
%
|
|
Subtotal
|
|
|
7,427,438
|
|
|
|
1,485,323
|
|
|
|
8,912,761
|
|
|
|
100.0
|
%
|
|
|
4.11
|
%
|
|
|
3.86
|
%
|
|
Deferred Financing Costs and Unamortized (Discount)
|
|
|
(56,147
|
)
|
|
|
(38,675
|
)
|
|
|
(94,822
|
)
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
7,371,291
|
|
|
$
|
1,446,648
|
|
|
$
|
8,817,939
|
|
|
|
100.0
|
%
|
|
|
4.11
|
%
|
|
|
3.86
|
%
|
|
(1)
|
|
Net of the effect of any derivative instruments. Weighted average
rates are as of December 31, 2018.
|
|
(2)
|
|
Includes $500.0 million in principal outstanding on the Company's
commercial paper program.
|
|
(3)
|
|
Includes a $500.0 million 5.78% mortgage loan with a maturity date
of July 1, 2020 that can be repaid at par beginning July 1, 2019.
The Company currently intends to prepay this mortgage loan on July
1, 2019.
|
|
|
|
Equity Residential
|
|
|
|
Selected Unsecured Public Debt Covenants
|
|
|
|
|
|
December 31,
|
|
|
September 30,
|
|
|
|
2018
|
|
|
2018
|
|
Total Debt to Adjusted Total Assets (not to exceed 60%)
|
|
33.4
|
%
|
|
|
33.5
|
%
|
|
|
|
|
|
|
|
|
|
|
Secured Debt to Adjusted Total Assets (not to exceed 40%)
|
|
9.0
|
%
|
|
|
10.6
|
%
|
|
|
|
|
|
|
|
|
|
|
Consolidated Income Available for Debt Service to
Maximum Annual Service Charges
(must be at least 1.5 to 1)
|
|
|
4.48
|
|
|
|
|
4.46
|
|
|
|
|
|
|
|
|
|
|
|
Total Unsecured Assets to Unsecured Debt
(must be at least 150%)
|
|
348.2
|
%
|
|
|
362.9
|
%
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
2018
|
|
|
2018
|
|
Total debt to Normalized EBITDAre
|
|
5.34x
|
|
|
5.36x
|
|
|
|
|
|
|
|
|
|
Net debt to Normalized EBITDAre
|
|
5.31x
|
|
|
5.34x
|
|
|
|
|
|
|
|
|
|
Unencumbered NOI as a % of total NOI
|
|
82.2%
|
|
|
79.8%
|
|
|
|
|
|
|
|
Note: See page 23 for the Normalized EBITDAre reconciliations.
|
|
|
Equity Residential
|
|
|
|
Capital Structure as of December 31, 2018
|
|
(Amounts in thousands except for share/unit and per share amounts)
|
|
|
|
Secured Debt
|
|
|
|
|
|
|
|
|
|
$
|
2,385,470
|
|
|
|
27.1
|
%
|
|
|
|
|
|
Unsecured Debt
|
|
|
|
|
|
|
|
|
|
|
6,432,469
|
|
|
|
72.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt
|
|
|
|
|
|
|
|
|
|
|
8,817,939
|
|
|
|
100.0
|
%
|
|
|
25.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (includes Restricted Shares)
|
|
|
369,405,161
|
|
|
|
96.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units (includes OP Units and Restricted Units)
|
|
|
13,904,035
|
|
|
|
3.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Shares and Units
|
|
|
383,309,196
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share Price at December 31, 2018
|
|
$
|
66.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,302,240
|
|
|
|
99.9
|
%
|
|
|
|
|
|
Perpetual Preferred Equity (see below)
|
|
|
|
|
|
|
|
|
|
|
37,280
|
|
|
|
0.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Equity
|
|
|
|
|
|
|
|
|
|
|
25,339,520
|
|
|
|
100.0
|
%
|
|
|
74.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Market Capitalization
|
|
|
|
|
|
|
|
|
|
$
|
34,157,459
|
|
|
|
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Perpetual Preferred Equity as of December 31, 2018
|
|
(Amounts in thousands except for share and per share amounts)
|
|
|
|
Series
|
|
Call Date
|
|
Outstanding
Shares
|
|
|
Liquidation
Value
|
|
|
Annual
Dividend
Per Share
|
|
|
Annual
Dividend
Amount
|
|
Preferred Shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8.29% Series K
|
|
12/10/26
|
|
|
745,600
|
|
|
$
|
37,280
|
|
|
$
|
4.145
|
|
|
$
|
3,091
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Residential
|
|
Common Share and Unit
|
|
Weighted Average Amounts Outstanding
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
Q4 2018
|
|
|
Q4 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Amounts Outstanding for Net Income Purposes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares - basic
|
|
|
368,052,312
|
|
|
|
366,968,358
|
|
|
|
368,444,736
|
|
|
|
367,442,352
|
|
Shares issuable from assumed conversion/vesting of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- OP Units
|
|
|
12,868,188
|
|
|
|
12,901,219
|
|
|
|
12,860,819
|
|
|
|
12,882,935
|
|
- long-term compensation shares/units
|
|
|
2,774,227
|
|
|
|
2,808,917
|
|
|
|
2,990,518
|
|
|
|
2,780,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Common Shares and Units - diluted
|
|
|
383,694,727
|
|
|
|
382,678,494
|
|
|
|
384,296,073
|
|
|
|
383,105,315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Amounts Outstanding for FFO and Normalized FFO
Purposes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares - basic
|
|
|
368,052,312
|
|
|
|
366,968,358
|
|
|
|
368,444,736
|
|
|
|
367,442,352
|
|
OP Units - basic
|
|
|
12,868,188
|
|
|
|
12,901,219
|
|
|
|
12,860,819
|
|
|
|
12,882,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Common Shares and OP Units - basic
|
|
|
380,920,500
|
|
|
|
379,869,577
|
|
|
|
381,305,555
|
|
|
|
380,325,287
|
|
Shares issuable from assumed conversion/vesting of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- long-term compensation shares/units
|
|
|
2,774,227
|
|
|
|
2,808,917
|
|
|
|
2,990,518
|
|
|
|
2,780,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Common Shares and Units - diluted
|
|
|
383,694,727
|
|
|
|
382,678,494
|
|
|
|
384,296,073
|
|
|
|
383,105,315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ending Amounts Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (includes Restricted Shares)
|
|
|
369,405,161
|
|
|
|
368,018,082
|
|
|
|
|
|
|
|
|
|
Units (includes OP Units and Restricted Units)
|
|
|
13,904,035
|
|
|
|
13,768,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Shares and Units
|
|
|
383,309,196
|
|
|
|
381,786,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Residential
|
|
Development and Lease-Up Projects as of December 31, 2018
|
|
(Amounts in thousands except for project and apartment unit
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
Total
|
|
|
Total Book
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
No. of
|
|
|
Budgeted
|
|
|
Book
|
|
|
Value Not
|
|
|
|
|
|
|
|
|
|
|
Estimated/Actual
|
|
|
|
|
|
|
|
|
|
|
|
|
Apartment
|
|
|
Capital
|
|
|
Value
|
|
|
Placed in
|
|
|
Total
|
|
|
Percentage
|
|
|
Initial
|
|
|
Completion
|
|
Stabilization
|
|
Percentage
|
|
|
Percentage
|
|
Projects
|
|
Location
|
|
Units
|
|
|
Cost
|
|
|
to Date
|
|
|
Service
|
|
|
Debt
|
|
|
Completed
|
|
|
Occupancy
|
|
|
Date
|
|
Date
|
|
Leased
|
|
|
Occupied
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects Under Development:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1401 E. Madison
|
|
Seattle, WA
|
|
|
137
|
|
|
$
|
62,352
|
|
|
$
|
34,523
|
|
|
$
|
34,523
|
|
|
$
|
—
|
|
|
45
|
%
|
|
|
Q2 2019
|
|
|
Q3 2019
|
|
Q1 2020
|
|
|
—
|
|
|
|
|
—
|
|
|
249 Third Street
|
|
Cambridge, MA
|
|
|
84
|
|
|
|
51,447
|
|
|
|
26,168
|
|
|
|
26,168
|
|
|
|
—
|
|
|
38
|
%
|
|
|
Q3 2019
|
|
|
Q4 2019
|
|
Q2 2020
|
|
|
—
|
|
|
|
|
—
|
|
|
West End Tower
|
|
Boston, MA
|
|
|
469
|
|
|
|
409,749
|
|
|
|
48,718
|
|
|
|
48,718
|
|
|
|
—
|
|
|
7
|
%
|
|
|
Q2 2021
|
|
|
Q3 2021
|
|
Q1 2023
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects Under Development
|
|
|
|
|
690
|
|
|
|
523,548
|
|
|
|
109,409
|
|
|
|
109,409
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completed Not Stabilized (A):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100K Apartments
|
|
Washington, DC
|
|
|
222
|
|
|
|
88,023
|
|
|
|
85,116
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
Q3 2018
|
|
|
Q4 2018
|
|
Q4 2019
|
|
39
|
%
|
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects Completed Not Stabilized
|
|
|
|
|
222
|
|
|
|
88,023
|
|
|
|
85,116
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completed and Stabilized During the Quarter:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cascade
|
|
Seattle, WA
|
|
|
477
|
|
|
|
174,378
|
|
|
|
171,902
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
Q2 2017
|
|
|
Q4 2017
|
|
Q4 2018
|
|
98
|
%
|
|
|
97
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects Completed and Stabilized During the Quarter
|
|
|
477
|
|
|
|
174,378
|
|
|
|
171,902
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Development Projects
|
|
|
|
|
1,389
|
|
|
$
|
785,949
|
|
|
$
|
366,427
|
|
|
$
|
109,409
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land Held for Development
|
|
|
|
N/A
|
|
|
N/A
|
|
|
$
|
89,909
|
|
|
$
|
89,909
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Budgeted
Capital
Cost
|
|
|
Q4 2018
NOI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects Under Development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
523,548
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completed Not Stabilized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
88,023
|
|
|
|
|
260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completed and Stabilized During the Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
174,378
|
|
|
|
|
2,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Development NOI Contribution
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
785,949
|
|
|
|
$
|
2,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: All development projects are wholly owned by the Company.
(A) 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, 2018
|
|
(Amounts in thousands except for apartment unit and per apartment
unit amounts)
|
|
|
|
|
|
|
Same Store
Properties
|
|
|
Non-Same Store
Properties/Other
|
|
|
Total
|
|
|
Same Store Avg.
Per Apartment Unit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Apartment Units (1)
|
|
|
|
71,721
|
|
|
|
6,816
|
|
|
|
78,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Improvements
|
|
|
$
|
100,382
|
|
|
$
|
3,830
|
|
|
$
|
104,212
|
|
|
$
|
1,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Renovation Expenditures (2)
|
|
|
|
39,431
|
|
|
|
1,922
|
|
|
|
41,353
|
|
|
|
550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Replacements
|
|
|
|
41,746
|
|
|
|
1,190
|
|
|
|
42,936
|
|
|
|
582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Capital Expenditures
|
|
|
$
|
181,559
|
|
|
$
|
6,942
|
|
|
$
|
188,501
|
|
|
$
|
2,531
|
|
(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 2,850 same store apartment units for the
year ended December 31, 2018 approximated $13,800 per apartment unit
renovated.
|
|
|
|
|
|
|
|
Equity Residential
|
|
Normalized EBITDAre Reconciliations
|
|
(Amounts in thousands)
|
|
|
|
Normalized EBITDAre Reconciliations for Page 18
|
|
|
|
|
|
Trailing Twelve Months
|
|
|
2018
|
|
|
2017
|
|
|
|
|
December 31, 2018
|
|
|
September 30, 2018
|
|
|
Q4
|
|
|
Q3
|
|
|
Q2
|
|
|
Q1
|
|
|
Q4
|
|
|
Net income
|
|
$
|
685,192
|
|
|
$
|
692,888
|
|
|
$
|
122,388
|
|
|
$
|
223,846
|
|
|
$
|
118,410
|
|
|
$
|
220,548
|
|
|
$
|
130,084
|
|
|
Interest expense incurred, net
|
|
|
413,360
|
|
|
|
416,765
|
|
|
|
91,906
|
|
|
|
111,219
|
|
|
|
94,131
|
|
|
|
116,104
|
|
|
|
95,311
|
|
|
Amortization of deferred financing costs
|
|
|
11,310
|
|
|
|
11,133
|
|
|
|
2,256
|
|
|
|
3,276
|
|
|
|
2,099
|
|
|
|
3,679
|
|
|
|
2,079
|
|
|
Amortization of above/below market lease intangibles
|
|
|
4,392
|
|
|
|
4,393
|
|
|
|
1,098
|
|
|
|
1,098
|
|
|
|
1,098
|
|
|
|
1,098
|
|
|
|
1,099
|
|
|
Depreciation
|
|
|
785,725
|
|
|
|
784,654
|
|
|
|
201,856
|
|
|
|
194,618
|
|
|
|
192,942
|
|
|
|
196,309
|
|
|
|
200,785
|
|
|
Income and other tax expense (benefit)
|
|
|
878
|
|
|
|
535
|
|
|
|
111
|
|
|
|
280
|
|
|
|
274
|
|
|
|
213
|
|
|
|
(232
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
1,900,857
|
|
|
|
1,910,368
|
|
|
|
419,615
|
|
|
|
534,337
|
|
|
|
408,954
|
|
|
|
537,951
|
|
|
|
429,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (gain) loss on sales of real estate properties
|
|
|
(256,810
|
)
|
|
|
(272,130
|
)
|
|
|
24
|
|
|
|
(114,672
|
)
|
|
|
51
|
|
|
|
(142,213
|
)
|
|
|
(15,296
|
)
|
|
Impairment – operating assets
|
|
|
702
|
|
|
|
702
|
|
|
|
—
|
|
|
|
702
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDAre
|
|
|
1,644,749
|
|
|
|
1,638,940
|
|
|
|
419,639
|
|
|
|
420,367
|
|
|
|
409,005
|
|
|
|
395,738
|
|
|
|
413,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment – non-operating assets
|
|
|
—
|
|
|
|
1,693
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,693
|
|
|
Write-off of pursuit costs (other expenses)
|
|
|
4,450
|
|
|
|
3,902
|
|
|
|
1,325
|
|
|
|
1,059
|
|
|
|
1,135
|
|
|
|
931
|
|
|
|
777
|
|
|
(Income) loss from investments in unconsolidated entities
|
|
|
3,667
|
|
|
|
4,210
|
|
|
|
674
|
|
|
|
985
|
|
|
|
1,031
|
|
|
|
977
|
|
|
|
1,217
|
|
|
Net (gain) loss on sales of land parcels
|
|
|
(987
|
)
|
|
|
(992
|
)
|
|
|
8
|
|
|
|
—
|
|
|
|
(995
|
)
|
|
|
—
|
|
|
|
3
|
|
|
Insurance/litigation settlement or reserve income (interest and
other income)
|
|
|
(13,286
|
)
|
|
|
(13,423
|
)
|
|
|
—
|
|
|
|
(7,400
|
)
|
|
|
(528
|
)
|
|
|
(5,358
|
)
|
|
|
(137
|
)
|
|
Insurance/litigation/environmental settlement or reserve expense
(other expenses)
|
|
|
6,862
|
|
|
|
7,088
|
|
|
|
(226
|
)
|
|
|
4,202
|
|
|
|
963
|
|
|
|
1,923
|
|
|
|
—
|
|
|
Advocacy contributions (other expenses)
|
|
|
4,406
|
|
|
|
3,735
|
|
|
|
671
|
|
|
|
2,092
|
|
|
|
1,278
|
|
|
|
365
|
|
|
|
—
|
|
|
Other
|
|
|
237
|
|
|
|
816
|
|
|
|
382
|
|
|
|
(32
|
)
|
|
|
56
|
|
|
|
(169
|
)
|
|
|
961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized EBITDAre
|
|
$
|
1,650,098
|
|
|
$
|
1,645,969
|
|
|
$
|
422,473
|
|
|
$
|
421,273
|
|
|
$
|
411,945
|
|
|
$
|
394,407
|
|
|
$
|
418,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Items:
|
|
December 31, 2018
|
|
|
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
$
|
8,817,939
|
|
|
$
|
8,823,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
(47,442
|
)
|
|
|
(32,995
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage principal reserves/sinking funds
|
|
|
(9,754
|
)
|
|
|
(8,363
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt
|
|
$
|
8,760,743
|
|
|
$
|
8,782,435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: EBITDA, EBITDAre and Normalized EBITDAre do not include any
adjustments for the Company's share of partially owned unconsolidated
entities or the minority partner's share of partially owned consolidated
entities due to the immaterial size of the Company's partially owned
portfolio.
|
|
|
Equity Residential
|
|
Adjustments from FFO to Normalized FFO
|
|
(Amounts in thousands)
|
|
|
|
|
|
Year Ended December 31,
|
|
|
Quarter Ended December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
Variance
|
|
|
2018
|
|
|
2017
|
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment – non-operating assets
|
|
$
|
—
|
|
|
$
|
1,693
|
|
|
$
|
(1,693
|
)
|
|
$
|
—
|
|
|
$
|
1,693
|
|
|
$
|
(1,693
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-off of pursuit costs (other expenses)
|
|
|
4,450
|
|
|
|
3,106
|
|
|
|
1,344
|
|
|
|
1,325
|
|
|
|
777
|
|
|
|
548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prepayment premiums/penalties (interest expense)
|
|
|
22,110
|
|
|
|
12,258
|
|
|
|
9,852
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Write-off of unamortized deferred financing costs (interest expense)
|
|
|
2,957
|
|
|
|
251
|
|
|
|
2,706
|
|
|
|
193
|
|
|
|
—
|
|
|
|
193
|
|
|
Write-off of unamortized (premiums)/discounts/OCI (interest expense)
|
|
|
16,268
|
|
|
|
(720
|
)
|
|
|
16,988
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Debt extinguishment and preferred share redemption (gains) losses
|
|
|
41,335
|
|
|
|
11,789
|
|
|
|
29,546
|
|
|
|
193
|
|
|
|
—
|
|
|
|
193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (gain) loss on sales of land parcels
|
|
|
(987
|
)
|
|
|
(19,167
|
)
|
|
|
18,180
|
|
|
|
8
|
|
|
|
3
|
|
|
|
5
|
|
|
Net (gain) loss on sales of unconsolidated entities - non-operating
assets
|
|
|
—
|
|
|
|
(205
|
)
|
|
|
205
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
(Income) loss from investments in unconsolidated entities -
non-operating assets
|
|
|
826
|
|
|
|
488
|
|
|
|
338
|
|
|
|
86
|
|
|
|
468
|
|
|
|
(382
|
)
|
|
Non-operating asset (gains) losses
|
|
|
(161
|
)
|
|
|
(18,884
|
)
|
|
|
18,723
|
|
|
|
94
|
|
|
|
471
|
|
|
|
(377
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance/litigation settlement or reserve income (interest and
other income)
|
|
|
(13,286
|
)
|
|
|
(4,853
|
)
|
|
|
(8,433
|
)
|
|
|
—
|
|
|
|
(137
|
)
|
|
|
137
|
|
|
Insurance/litigation/environmental settlement or reserve expense
(other expenses)
|
|
|
6,862
|
|
|
|
237
|
|
|
|
6,625
|
|
|
|
(226
|
)
|
|
|
—
|
|
|
|
(226
|
)
|
|
Advocacy contributions (other expenses)
|
|
|
4,406
|
|
|
|
—
|
|
|
|
4,406
|
|
|
|
671
|
|
|
|
—
|
|
|
|
671
|
|
|
Other
|
|
|
237
|
|
|
|
1,245
|
|
|
|
(1,008
|
)
|
|
|
382
|
|
|
|
961
|
|
|
|
(579
|
)
|
|
Other miscellaneous items
|
|
|
(1,781
|
)
|
|
|
(3,371
|
)
|
|
|
1,590
|
|
|
|
827
|
|
|
|
824
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments from FFO to Normalized FFO
|
|
$
|
43,843
|
|
|
$
|
(5,667
|
)
|
|
$
|
49,510
|
|
|
$
|
2,439
|
|
|
$
|
3,765
|
|
|
$
|
(1,326
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: See pages 26 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 26 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.
|
|
|
|
|
|
|
|
|
Q1 2019
|
|
Full Year 2019
|
|
|
|
|
|
|
|
2019 Normalized FFO Guidance (per share
diluted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected Normalized FFO Per Share
|
|
$0.78 to $0.82
|
|
$3.34 to $3.44
|
|
|
|
|
|
|
|
|
2019 Same Store Assumptions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical Occupancy
|
|
|
|
96.2%
|
|
Revenue change
|
|
|
|
2.2% to 3.2%
|
|
Expense change
|
|
|
|
3.5% to 4.5%
|
|
NOI change (1)
|
|
|
|
1.5% to 3.0%
|
|
|
|
|
|
|
|
|
2019 Transaction Assumptions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated rental acquisitions
|
|
|
|
$700.0M
|
|
Consolidated rental dispositions
|
|
|
|
$700.0M
|
|
Transaction Accretion (Dilution)
|
|
|
|
(25 basis points)
|
|
|
|
|
|
|
|
|
2019 Debt Assumptions (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average debt outstanding
|
|
|
|
$8.8B to $9.0B
|
|
Weighted average interest rate (reduced for capitalized interest)
|
|
4.25%
|
|
Interest expense, net (on a Normalized FFO basis)
|
|
|
|
$374.0M to $382.5M
|
|
Capitalized interest
|
|
|
|
$4.5M to $8.5M
|
|
|
|
|
|
|
|
|
2019 Capital Expenditures to Real Estate
Assumptions for Same Store Properties (3)
|
|
|
|
|
|
|
|
|
Capital Expenditures to Real Estate for Same Store Properties
|
|
|
|
$190.0M
|
|
Capital Expenditures to Real Estate per Same Store Apartment Unit
|
|
|
|
$2,600
|
|
|
|
|
|
|
|
|
2019 Other Guidance Assumptions
|
|
|
|
|
|
|
|
|
|
|
|
|
Property management expense
|
|
|
|
$96.0M to $98.0M
|
|
General and administrative expense
|
|
|
|
$49.0M to $51.0M
|
|
Interest and other income
|
|
|
|
$1.2M to $1.7M
|
|
Income and other tax expense
|
|
|
|
$0.7M to $1.2M
|
|
Debt offerings
|
|
|
|
$700.0M to $900.0M
|
|
Equity ATM share offerings
|
|
|
|
No amounts budgeted
|
|
Preferred share offerings
|
|
|
|
No amounts budgeted
|
|
Weighted average Common Shares and Units - Diluted
|
|
385.1M
|
|
|
|
|
|
(1)
|
|
Approximately 25 basis point change in NOI percentage = $0.01 per
share change in EPS/FFO per share/Normalized FFO per share.
|
|
(2)
|
|
All 2019 debt assumptions are shown on a Normalized FFO basis and
therefore exclude an approximately $16.8 million impact from
anticipated debt extinguishment costs in connection with all planned
debt repayment activities in 2019, all of which represents non-cash
write-offs of unamortized debt discounts and deferred financing
costs.
|
|
(3)
|
|
During 2019, the Company expects to spend approximately $40.0
million for apartment unit Renovation Expenditures on approximately
3,000 same store apartment units at an average cost of approximately
$13,300 per apartment unit renovated, which is included in the
Capital Expenditures to Real Estate assumptions noted above.
|
|
|
|
|
|
|
|
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 measurement of
performance computed in accordance with accounting principles generally
accepted in the United States ("GAAP") 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.
|
|
|
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)
|
|
|
EBITDA for Real Estate and Normalized EBITDA
for Real Estate:
Earnings Before Interest, Taxes, Depreciation and Amortization for
Real Estate ("EBITDAre") – The National Association of Real
Estate Investment Trusts ("Nareit") defines EBITDAre (September 2017
White Paper) as net income (computed in accordance with GAAP) before
interest expense, income taxes, depreciation and amortization expense,
and further adjusted for gains and losses from sales of depreciated
operating properties, impairment write-downs of depreciated operating
properties, impairment write-downs of investments in unconsolidated
entities caused by a decrease in value of depreciated operating
properties within the joint venture and adjustments to reflect the
Company's share of EBITDAre of investments in unconsolidated entities.
The Company believes that EBITDAre is useful to investors, creditors and
rating agencies as a supplemental measure of the Company's ability to
incur and service debt because it is a recognized measure of performance
by the real estate industry, and by excluding gains or losses related to
sales or impairment of depreciated operating properties, EBITDAre can
help compare the Company's credit strength between periods or as
compared to different companies.
Normalized Earnings Before Interest, Taxes, Depreciation and
Amortization for Real Estate ("Normalized EBITDAre") – Represents
net income (computed in accordance with GAAP) before interest expense,
income taxes, depreciation and amortization expense, and further
adjusted for non-comparable items. Normalized EBITDAre, total debt to
Normalized EBITDAre and net debt to Normalized EBITDAre are important
metrics in evaluating the credit strength of the Company and its ability
to service its debt obligations. The Company believes that Normalized
EBITDAre, total debt to Normalized EBITDAre, and net debt to Normalized
EBITDAre 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.
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, renovation, 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, 2018
|
|
|
Quarter Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Gain (Loss) on Sales of Real Estate Properties
|
|
$
|
256,810
|
|
|
$
|
(24
|
)
|
|
Accumulated Depreciation Gain
|
|
|
(100,655
|
)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Economic Gain
|
|
$
|
156,155
|
|
|
$
|
(24
|
)
|
|
|
|
|
|
|
|
|
|
|
FFO and Normalized FFO:
Funds From Operations ("FFO") – Nareit defines FFO (April
2002 White Paper) as net income (computed in accordance with
GAAP), excluding gains (or losses) from sales and impairment
write-downs of depreciated operating properties, plus depreciation and
amortization expense, 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 sales of depreciated operating properties 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;
-
pursuit cost write-offs;
-
gains and losses from early debt extinguishment and preferred share
redemptions;
-
gains and losses from non-operating assets; 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.
The following table presents reconciliations of EPS to FFO per share and
Normalized FFO per share for pages 7 and 24 (the expected
guidance/projections provided below are based on current expectations
and are forward-looking):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual
|
|
|
Actual
|
|
|
Expected
|
|
|
Expected
|
|
|
|
Actual 2018
|
|
|
Actual 2017
|
|
|
Q4 2018
|
|
|
Q4 2017
|
|
|
Q1 2019
|
|
|
2019
|
|
|
|
|
Per Share
|
|
|
Per Share
|
|
|
Per Share
|
|
|
Per Share
|
|
|
Per Share
|
|
|
Per Share
|
|
EPS – Diluted
|
|
$
|
1.77
|
|
|
$
|
1.63
|
|
|
$
|
0.31
|
|
|
$
|
0.34
|
|
|
$0.25 to $0.29
|
|
|
$1.88 to $1.98
|
|
Add: Depreciation expense
|
|
|
2.04
|
|
|
|
1.93
|
|
|
|
0.53
|
|
|
|
0.52
|
|
|
0.52
|
|
|
2.00
|
|
|
Less: Net (gain) loss on sales
|
|
|
(0.67
|
)
|
|
|
(0.41
|
)
|
|
|
—
|
|
|
|
(0.04
|
)
|
|
|
—
|
|
|
(0.62
|
)
|
|
Add: Impairment – operating assets
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per share – Diluted
|
|
|
3.14
|
|
|
|
3.15
|
|
|
|
0.84
|
|
|
|
0.82
|
|
|
0.77 to 0.81
|
|
|
3.26 to 3.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment – non-operating assets
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Write-off of pursuit costs
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
|
Debt extinguishment and preferred share
redemption (gains) losses
|
|
|
0.11
|
|
|
|
0.03
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.05
|
|
|
Non-operating asset (gains) losses
|
|
|
—
|
|
|
|
(0.05
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Other miscellaneous items
|
|
|
(0.01
|
)
|
|
|
(0.01
|
)
|
|
|
—
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized FFO per share – Diluted
|
|
$
|
3.25
|
|
|
$
|
3.13
|
|
|
$
|
0.84
|
|
|
$
|
0.83
|
|
|
$0.78 to $0.82
|
|
|
$3.34 to $3.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
Operating income
|
|
$
|
858,560
|
|
|
$
|
847,471
|
|
|
$
|
219,306
|
|
|
$
|
214,764
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee and asset management revenue
|
|
|
(753
|
)
|
|
|
(717
|
)
|
|
|
(190
|
)
|
|
|
(185
|
)
|
|
Property management
|
|
|
92,485
|
|
|
|
85,493
|
|
|
|
23,310
|
|
|
|
20,791
|
|
|
General and administrative
|
|
|
53,813
|
|
|
|
52,224
|
|
|
|
12,393
|
|
|
|
11,858
|
|
|
Depreciation
|
|
|
785,725
|
|
|
|
743,749
|
|
|
|
201,856
|
|
|
|
200,785
|
|
|
Impairment
|
|
|
702
|
|
|
|
1,693
|
|
|
|
—
|
|
|
|
1,693
|
|
|
Total NOI
|
|
$
|
1,790,532
|
|
|
$
|
1,729,913
|
|
|
$
|
456,675
|
|
|
$
|
449,706
|
|
|
Rental income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store
|
|
$
|
2,363,491
|
|
|
$
|
2,311,240
|
|
|
$
|
616,496
|
|
|
$
|
601,061
|
|
|
Non-same store/other
|
|
|
214,190
|
|
|
|
159,449
|
|
|
|
36,057
|
|
|
|
29,458
|
|
|
Total rental income
|
|
|
2,577,681
|
|
|
|
2,470,689
|
|
|
|
652,553
|
|
|
|
630,519
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store
|
|
|
705,890
|
|
|
|
681,198
|
|
|
|
180,218
|
|
|
|
173,033
|
|
|
Non-same store/other
|
|
|
81,259
|
|
|
|
59,578
|
|
|
|
15,660
|
|
|
|
7,780
|
|
|
Total operating expenses
|
|
|
787,149
|
|
|
|
740,776
|
|
|
|
195,878
|
|
|
|
180,813
|
|
|
NOI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store
|
|
|
1,657,601
|
|
|
|
1,630,042
|
|
|
|
436,278
|
|
|
|
428,028
|
|
|
Non-same store/other
|
|
|
132,931
|
|
|
|
99,871
|
|
|
|
20,397
|
|
|
|
21,678
|
|
|
Total NOI
|
|
$
|
1,790,532
|
|
|
$
|
1,729,913
|
|
|
$
|
456,675
|
|
|
$
|
449,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Same Store Properties – For annual comparisons, primarily
includes all properties acquired during 2017 and 2018, plus any
properties in lease-up and not stabilized as of January 1, 2017.
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 Operating Expenses:
On-site payroll – Includes payroll and related expenses
for on-site personnel including property managers, leasing consultants,
and maintenance staff.
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.
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.
Utilities – Represents gross expenses prior to any recoveries
under the Resident Utility Billing System ("RUBS"). Recoveries are
reflected in rental income.
Same Store Properties – For annual comparisons, primarily
includes all properties acquired or completed that are stabilized prior
to January 1, 2017, 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 Budgeted NOI – Represents budgeted 2019 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,
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, plus any estimates of costs remaining to be funded for all
projects, 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.
Transaction Accretion (Dilution) – Represents the spread between
the Acquisition Cap Rate and the Disposition Yield.
Turnover – Total residential move-outs (including
inter-property and intra-property transfers) divided by total
residential apartment units.
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.
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, renovation,
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190129005906/en/
