Equity Residential Reports Strong Results

  Equity Residential Reports Strong Results

             Same Store Revenues Increase 4.9% in 2Q and 5.0% YTD

               Same Store NOI Increases 5.6% in 2Q and 5.8% YTD

Business Wire

CHICAGO -- July 30, 2013

Equity Residential (NYSE: EQR) today reported results for the quarter and six
months ended June 30, 2013. All per share results are reported as available to
common shares on a diluted basis.

“We are pleased that apartment fundamentals across our markets remain strong
and that we will again produce results for the full year in line with our
original guidance and well above historical trends,” said David J. Neithercut,
Equity Residential’s President and CEO. “We are extremely proud of our
property teams across the country for delivering such strong performance while
simultaneously integrating 21,000 newly acquired apartment units into our
portfolio.”

Second Quarter 2013

FFO (Funds from Operations), as defined by the National Association of Real
Estate Investment Trusts (NAREIT), for the second quarter of 2013 was $0.73
per share compared to $0.64 per share in the second quarter of 2012.

For the second quarter of 2013, the company reported Normalized FFO of $0.71
per share compared to $0.68 per share in the same period of 2012. The
difference is due primarily to:

  *the positive impact of approximately $0.04 per share from higher same
    store net operating income (NOI);
  *the positive impact of approximately $0.27 per share from the stabilized
    Archstone properties, offset by the negative impact of approximately $0.25
    per share from 2012 and 2013 disposition activity and common share
    issuance in connection with the company’s purchase of Archstone; and
  *the negative impact of approximately $0.03 per share from higher interest
    expense and other items.

Normalized FFO begins with FFO and eliminates certain items that by their
nature are not comparable from period to period or that tend to obscure the
company’s actual operating performance. Merger expenses and prepayment
penalties are not included in the company’s Normalized FFO. A reconciliation
and definition of Normalized FFO are provided on pages 26 and 29 of this
release and the company has included guidance for Normalized FFO on page 27 of
this release.

For the second quarter of 2013, the company reported earnings of $0.90 per
share compared to $0.33 per share in the second quarter of 2012. The
difference is due primarily to higher gains from property sales in the second
quarter of 2013, partially offset by higher depreciation as a result of the
Archstone acquisition, as well as the items discussed above.

Six Months Ended June 30, 2013

FFO for the six months ended June 30, 2013 was $0.97 per share compared to
$1.24 per share in the same period of 2012. The difference is due primarily to
merger-related expenses and prepayment penalties incurred in the first six
months of 2013 in connection with the company’s acquisition of Archstone.

For the six months ended June 30, 2013, the company reported Normalized FFO of
$1.35 per share compared to $1.29 per share in the same period of 2012.

For the six months ended June 30, 2013, the company reported earnings of $3.84
per share compared to $0.81 per share in the same period of 2012.

Same Store Results

On a same store second quarter to second quarter comparison, which includes
85,509 apartment units, revenues increased 4.9%, expenses increased 3.6% and
NOI increased 5.6%.

On a same store six-month to six-month comparison, which includes 84,965
apartment units, revenues increased 5.0%, expenses increased 3.4% and NOI
increased 5.8%.

Acquisitions/Dispositions

During the second quarter of 2013, the company acquired one property located
in Redmond, Washington, consisting of 322 apartment units, for a purchase
price of $91.5 million and a capitalization (cap) rate of 4.7%. The company
also acquired one land parcel located in Seattle for future development for a
purchase price of $16.5 million.

During the first six months of 2013, the company acquired 77 properties,
consisting of 22,103 apartment units. With the exception of the acquisition
discussed above, these properties were acquired as part of the company’s $9
billion acquisition of 60% of the assets and liabilities of Archstone.

During the quarter, the company sold 19 apartment properties, consisting of
5,745 apartment units, for an aggregate sale price of $729.9 million at a
weighted average cap rate of 6.1%. These sales, excluding one Archstone asset
that was sold shortly after its acquisition, generated an unlevered internal
rate of return (IRR), inclusive of management costs, of 10.5%.

The company sold properties in the following markets during the quarter:

                                           
Market                   Properties     Units     Sale Price (millions)
Phoenix                  7              2,032     $241.1
Seattle                  2              653       126.8
Suburban New England     3              646       73.1
Atlanta                  2              627       80.3
Washington, D.C.         2              620       94.6
Jacksonville             1              480       55.1
Orlando                  1              456       37.4
Tacoma                   1              231       21.5
                         19             5,745     $729.9
                                                  

Also during the quarter, the company sold one commercial property adjacent to
our Harbor Steps property in downtown Seattle for $30.7 million and five land
parcels for an aggregate sale price of $59.8 million, generating an economic
gain of approximately $29.0 million.

During the first six months of 2013, the company sold 82 apartment properties,
consisting of 24,197 apartment units, for an aggregate sale price of $3.7
billion at a weighted average cap rate of 6.0%. These sales, excluding two
Archstone assets that were sold shortly after their acquisition, generated an
unlevered IRR, inclusive of management costs, of 9.7%.

Please see page nine of this release for comparative portfolio summaries for
the end of the fourth quarter 2012 and the end of the second quarter 2013.

Capital Markets Activities

The company also announced today certain actions designed to maintain its
flexibility in the capital markets.

Earlier today, the company filed with the SEC a new universal shelf
registration statement on Form S-3 for use in future registered equity and
debt securities offerings. This registration statement was filed to replace
the company's current universal shelf registration statement, which expires
later this year.

The company’s Board has also authorized an increase to the amount of shares
which may be offered under the company’s At-The-Market (ATM) offering program
from 6 million shares to 13 million shares. The company has also modified its
existing share repurchase program to allow for the potential repurchase of up
to 13 million company common shares. The program previously had repurchase
capacity equating to approximately 8 million shares. These actions replenish
the capacity in these programs to levels that the company believes are
appropriate for its size. The company has not used its ATM program since the
third quarter of 2012, has not used its share repurchase program for open
market repurchases since 2008 and has no immediate plans to utilize either
program.

Also, as previously disclosed, on April 10, 2013, the company closed a $500
million unsecured note offering maturing April 15, 2023 with a coupon of 3.0%
and an all in effective rate of approximately 4.0% including the effect of
fees and the termination of certain interest rate hedges. Proceeds from the
issuance were used to repay secured debt and amounts outstanding on the
company's revolving credit facility, fund termination costs on interest rate
swaps and for other corporate purposes.

Third Quarter 2013 Guidance

The company has established a Normalized FFO guidance range of $0.71 to $0.75
per share for the third quarter of 2013. The difference between the company’s
second quarter 2013 Normalized FFO of $0.71 per share and the midpoint of the
third quarter guidance range of $0.73 per share is due primarily to a positive
impact of approximately $0.02 per share from lower interest expense and
general and administrative costs.

Full Year 2013 Guidance

The company has revised its guidance for its full year 2013 same store
operating performance, transactions and Normalized FFO results as well as
other items listed on page 27 of this release. The changes to the full year
same store, transactions and Normalized FFO guidance are listed below:

                                            
                            Previous           Revised
Same store:
Physical occupancy          95.3%              95.3%
Revenue change              4.0% to 5.0%       4.4% to 4.6%
Expense change              2.5% to 3.5%       3.0% to 3.5%
NOI change                  4.5% to 6.0%       5.0% to 5.25%

Acquisitions:               $100 million       $100 million
Dispositions:               $4.0 billion       $4.1 billion
Cap Rate Spread:            100 basis points   110 basis points

Normalized FFO per share:   $2.80 to $2.90     $2.80 to $2.85
                                               

The difference between the midpoint of the previous Normalized FFO guidance
range and the midpoint of the revised guidance range is due primarily to the
company completing its approximately $4 billion disposition program earlier in
the year than originally expected.

Third Quarter 2013 Earnings and Conference Call

Equity Residential expects to announce third quarter 2013 results on
Wednesday, October 30, 2013 and host a conference call to discuss those
results at 10:00 a.m. CT on Thursday, October 31, 2013.

Equity Residential is an S&P 500 company focused on the acquisition,
development and management of high quality apartment properties in top U.S.
growth markets. Equity Residential owns or has investments in 398 properties
located in 12 states and the District of Columbia, consisting of 113,388
apartment units. For more information on Equity Residential, please visit our
website at www.equityapartments.com.

Forward-Looking Statements

In addition to historical information, this press release contains
forward-looking statements and information within the meaning of the federal
securities laws. These statements are based on current expectations,
estimates, projections and assumptions made by management. While Equity
Residential’s management believes the assumptions underlying its
forward-looking statements are reasonable, such information is inherently
subject to uncertainties and may involve certain risks, including, without
limitation, changes in general market conditions, including the rate of job
growth and cost of labor and construction material, the level of new
multifamily construction and development, competition and local government
regulation. Other risks and uncertainties are described under the heading
“Risk Factors” in our Annual Report on Form 10-K and subsequent periodic
reports filed with the Securities and Exchange Commission (SEC) and available
on our website, www.equityapartments.com. Many of these uncertainties and
risks are difficult to predict and beyond management’s control.
Forward-looking statements are not guarantees of future performance, results
or events. Equity Residential assumes no obligation to update or supplement
forward-looking statements that become untrue because of subsequent events.

A live web cast of the company’s conference call discussing these results will
take place tomorrow, Wednesday, July 31, at 9:00 a.m. Central. Please visit
the Investor section of the company’s web site at www.equityapartments.com for
the link. A replay of the web cast will be available for two weeks at this
site.

                                                             
Equity Residential
Consolidated Statements of Operations
(Amounts in thousands except per share data)
(Unaudited)
                                                                  
                    Six Months Ended June 30,      Quarter Ended June 30,
                    2013            2012           2013           2012
REVENUES
Rental income       $ 1,151,918     $ 874,338      $ 632,405      $ 446,139
Fee and asset        4,833         4,276        2,673        2,212    
management
Total revenues       1,156,751     878,614      635,078      448,351  
                                                                  
EXPENSES
Property and          220,417         173,819        117,819        85,423
maintenance
Real estate taxes     145,400         104,268        78,547         53,422
and insurance
Property              44,520          44,276         22,031         20,937
management
Fee and asset         3,223           2,487          1,577          1,180
management
Depreciation          528,328         289,273        327,985        145,438
General and          32,582        27,079       16,086       13,391   
administrative
Total expenses       974,470       641,202      564,045      319,791  
                                                                  
Operating income      182,281         237,412        71,033         128,560
                                                                  
Interest and          504             427            249            258
other income
Other expenses        (3,544    )     (14,603  )     (981     )     (8,802   )
Merger expenses       (19,559   )     (1,834   )     (467     )     (685     )
Interest:
Expense incurred,     (317,417  )     (232,254 )     (122,950 )     (114,627 )
net
Amortization of
deferred             (11,301   )    (6,945   )    (4,353   )    (4,017   )
financing costs
(Loss) income
before income and
other taxes,
(loss) from
investments in
unconsolidated
entities, net
gain on sales of
land parcels and
discontinued          (169,036  )     (17,797  )     (57,469  )     687
operations
Income and other
tax (expense)         (833      )     (380     )     (428     )     (213     )
benefit
(Loss) from
investments in
unconsolidated        (1,530    )     —              (1,175   )     —
entities due to
operations
(Loss) from
investments in
unconsolidated        (53,010   )     —              (6,999   )     —
entities due to
merger expenses
Net gain on sales    14,616        —            14,616       —        
of land parcels
(Loss) income
from continuing       (209,793  )     (18,177  )     (51,455  )     474
operations
Discontinued         1,607,559     278,659      388,187      107,841  
operations, net
Net income            1,397,766       260,482        336,732        108,315
Net (income) loss
attributable to
Noncontrolling
Interests:
Operating             (56,111   )     (11,150  )     (12,788  )     (4,732   )
Partnership
Partially Owned      790           (769     )    815          (319     )
Properties
Net income
attributable to       1,342,445       248,563        324,759        103,264
controlling
interests
Preferred            (2,072    )    (6,933   )    (1,036   )    (3,467   )
distributions
Net income
available to        $ 1,340,373    $ 241,630     $ 323,723     $ 99,797   
Common Shares
                                                                  
Earnings per
share – basic:
(Loss) from
continuing
operations
available to
Common
Shares              $ (0.58     )   $ (0.08    )   $ (0.14    )   $ (0.01    )
Net income
available to        $ 3.84         $ 0.81        $ 0.90        $ 0.33     
Common Shares
Weighted average
Common Shares        348,654       299,499      359,653      300,193  
outstanding
                                                                  
Earnings per
share – diluted:
(Loss) from
continuing
operations
available to
Common
Shares              $ (0.58     )   $ (0.08    )   $ (0.14    )   $ (0.01    )
Net income
available to        $ 3.84         $ 0.81        $ 0.90        $ 0.33     
Common Shares
Weighted average
Common Shares        348,654       299,499      359,653      300,193  
outstanding
                                                                  
Distributions
declared per        $ 0.80         $ 0.6750      $ 0.40        $ 0.3375   
Common Share
outstanding

                                                              
Equity Residential
Consolidated Statements of Funds From Operations and Normalized Funds From
Operations
(Amounts in thousands except per share data)
(Unaudited)

                    Six Months Ended June 30,       Quarter Ended June 30,
                    2013             2012           2013           2012
Net income          $ 1,397,766      $ 260,482      $ 336,732      $ 108,315
Net loss (income)
attributable to
Noncontrolling
Interests –
Partially Owned       790              (769     )     815            (319    )
Properties
Preferred            (2,072     )    (6,933   )    (1,036   )    (3,467  )
distributions
Net income
available to          1,396,484        252,780        336,511        104,529
Common Shares and
Units
                                                                   
Adjustments:
Depreciation          528,328          289,273        327,985        145,438
Depreciation –
Non-real estate       (2,473     )     (2,781   )     (1,257   )     (1,427  )
additions
Depreciation –
Partially Owned
and                   (2,508     )     (1,597   )     (1,493   )     (797    )
Unconsolidated
Properties
Discontinued
operations:
Depreciation          22,160           58,833         2,465          27,560
Net (gain) on
sales of              (1,588,874 )     (204,053 )     (389,952 )     (71,097 )
discontinued
operations
Net incremental
gain on sales of      7                49             7              —
condominium units
Gain on sale of
Equity Corporate     601            350          351          350     
Housing (ECH)
FFO available to
Common Shares and     353,725          392,854        274,617        204,556
Units (1) (3) (4)
                                                                   
Adjustments (see
page 26 for
additional
detail):
Asset impairment
and valuation         —                —              —              —
allowances
Property
acquisition costs     76,116           10,894         8,448          8,268
and write-off of
pursuit costs
Debt
extinguishment
(gains) losses,
including
prepayment
penalties,
preferred share
redemptions and
non-cash              78,820           1,377          (823     )     1,418
convertible debt
discounts
(Gains) losses on
sales of
non-operating
assets, net of
income and other
tax expense
(benefit)             (15,224    )     (491     )     (14,974  )     (487    )
Other
miscellaneous        —              2,223        —            1,249   
non-comparable
items
Normalized FFO
available to        $ 493,437       $ 406,857     $ 267,268     $ 215,004 
Common Shares and
Units (2) (3) (4)
                                                                   
FFO (1) (3)         $ 355,797        $ 399,787      $ 275,653      $ 208,023
Preferred            (2,072     )    (6,933   )    (1,036   )    (3,467  )
distributions
FFO available to
Common Shares and
Units - basic and   $ 353,725       $ 392,854     $ 274,617     $ 204,556 
diluted (1) (3)
(4)
FFO per share and   $ 0.98          $ 1.25        $ 0.74        $ 0.65    
Unit - basic
FFO per share and   $ 0.97          $ 1.24        $ 0.73        $ 0.64    
Unit - diluted
                                                                   
Normalized FFO      $ 495,509        $ 413,790      $ 268,304      $ 218,471
(2) (3)
Preferred            (2,072     )    (6,933   )    (1,036   )    (3,467  )
distributions
Normalized FFO
available to
Common Shares and   $ 493,437       $ 406,857     $ 267,268     $ 215,004 
Units - basic and
diluted (2) (3)
(4)
Normalized FFO
per share and       $ 1.36          $ 1.30        $ 0.72        $ 0.68    
Unit - basic
Normalized FFO
per share and       $ 1.35          $ 1.29        $ 0.71        $ 0.68    
Unit - diluted
                                                                   
Weighted average
Common Shares and    362,390        313,133      373,403      314,255 
Units outstanding
- basic
Weighted average
Common Shares and    364,867        316,457      375,910      317,648 
Units outstanding
- diluted
                                                                             

        See page 26 for additional detail regarding the adjustments from FFO
Note:  to Normalized FFO. See page 29 for the definitions, the footnotes
        referenced above and the reconciliations of EPS to FFO and Normalized
        FFO.

                                                             
Equity Residential
Consolidated Balance Sheets
(Amounts in thousands except for share amounts)
(Unaudited)
                                                                
                                               June 30,         December 31,
                                               2013             2012
ASSETS
Investment in real estate
Land                                           $ 6,264,787      $ 4,554,912
Depreciable property                             19,568,973       15,711,944
Projects under development                       585,749          387,750
Land held for development                       569,398        353,823    
Investment in real estate                        26,988,907       21,008,429
Accumulated depreciation                        (4,547,327 )    (4,912,221 )
Investment in real estate, net                   22,441,580       16,096,208
Cash and cash equivalents                        152,564          612,590
Investments in unconsolidated entities           188,582          17,877
Deposits – restricted                            197,267          250,442
Escrow deposits – mortgage                       41,357           9,129
Deferred financing costs, net                    71,013           44,382
Other assets                                    390,020        170,372    
Total assets                                   $ 23,482,383    $ 17,201,000 
                                                                
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable                         $ 6,247,612      $ 3,898,369
Notes, net                                       5,475,954        4,630,875
Lines of credit                                  —                —
Accounts payable and accrued expenses            84,603           38,372
Accrued interest payable                         86,083           76,223
Other liabilities                                318,622          304,518
Security deposits                                71,857           66,988
Distributions payable                           150,846        260,176    
Total liabilities                               12,435,577     9,275,521  
                                                                
Commitments and contingencies
                                                                
Redeemable Noncontrolling Interests –           407,890        398,372    
Operating Partnership
Equity:
Shareholders’ equity:
Preferred Shares of beneficial interest,
$0.01 par value;
100,000,000 shares authorized; 1,000,000
shares issued and
outstanding as of June 30, 2013 and December     50,000           50,000
31, 2012
Common Shares of beneficial interest, $0.01
par value;
1,000,000,000 shares authorized; 360,312,049
shares issued and
outstanding as of June 30, 2013 and
325,054,654 shares
issued and outstanding as of December 31,        3,603            3,251
2012
Paid in capital                                  8,496,027        6,542,355
Retained earnings                                1,939,598        887,355
Accumulated other comprehensive (loss)          (166,844   )    (193,148   )
Total shareholders’ equity                       10,322,384       7,289,813
Noncontrolling Interests:
Operating Partnership                            209,039          159,606
Partially Owned Properties                      107,493        77,688     
Total Noncontrolling Interests                  316,532        237,294    
Total equity                                    10,638,916     7,527,107  
Total liabilities and equity                   $ 23,482,383    $ 17,201,000 

                                                                                          
      Equity Residential
                                                                                                   
                      Portfolio Summary as of December 31, 2012       Portfolio Summary as of June 30, 2013
                                               % of         Average                            % of         Average
                                   Apartment   Stabilized   Rental                 Apartment   Stabilized   Rental
      Markets/Metro   Properties   Units       NOI (1)      Rate      Properties   Units       NOI (1)      Rate
      Areas                                                 (2)                                             (2)
                                                                                                            
      Core:
      Washington DC   43           14,425      15.9%        $ 1,992   56           18,275      19.4%        $ 2,260
      New York        30           8,047       13.9%          3,433   38           10,330      16.9%          3,687
      San Francisco   40           9,094       8.6%           1,902   50           12,765      11.7%          2,115
      Los Angeles     48           9,815       9.9%           1,879   57           11,960      11.2%          2,053
      Boston          26           5,832       8.2%           2,560   34           7,816       10.2%          2,774
      South Florida   36           12,253      9.0%           1,463   33           10,833      7.0%           1,525
      Seattle         38           7,563       6.4%           1,627   40           7,896       5.9%           1,705
      San Diego       14           4,963       5.0%           1,851   15           4,915       4.4%           1,892
      Denver          24           8,144       5.5%           1,226   19           6,935       4.2%           1,292
      Orange          11           3,490       3.3%          1,660   11           3,490       2.8%          1,689
      County, CA
      Subtotal –      310          83,626      85.7%          1,941   353          95,215      93.7%          2,172
      Core
                                                                                                            
      Non-Core:
      Inland          10           3,081       2.4%           1,491   10           3,081       2.1%           1,515
      Empire, CA
      Orlando         21           6,413       3.5%           1,086   10           3,383       1.7%           1,132
      New England
      (excluding      14           2,611       1.3%           1,174   11           1,965       0.8%           1,226
      Boston)
      Phoenix         25           7,400       3.4%           946     6            2,040       0.7%           900
      Atlanta         12           3,616       2.0%           1,157   4            1,343       0.6%           1,268
      Tacoma, WA      3            1,467       0.6%           951     2            1,236       0.4%           1,030
      Jacksonville    6            2,117       1.1%          1,005   —            —           —             —
      Subtotal –      91           26,705      14.3%         1,099   43           13,048      6.3%          1,206
      Non-Core
      Total           401          110,331     100.0%        1,737   396          108,263     100.0%        2,055
                                                                                                            
      Military        2            5,039       —             —       2            5,125       —             —
      Housing
                                                                                                            
      Grand Total     403          115,370     100.0%       $ 1,737   398          113,388     100.0%       $ 2,055
                                                                                                            
      Note: Projects under development are not included in the Portfolio Summary until construction has been
      completed.
                                                                                                            
      % of Stabilized NOI includes budgeted 2013 NOI for stabilized properties, budgeted year one (March 2013 to
(1)   February 2014) NOI for the Archstone properties and projected annual NOI at stabilization (defined as having
      achieved 90% occupancy for three consecutive months) for properties that are in lease-up.
                                                                                                            
(2)   Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment
      units for the last month of the period presented.

                                                               
Equity Residential
                                                                  
Portfolio as of June 30, 2013
                                                                         
                                                        Apartment
                                           Properties   Units
Wholly Owned Properties                    373            103,322
Master-Leased Properties -                 3              853
Consolidated
Partially Owned Properties                 19             3,752
- Consolidated
Partially Owned Properties                 1              336
- Unconsolidated
Military Housing                           2            5,125      
                                                                         
                                           398          113,388    
                                                              
                                                                         
Portfolio Rollforward Q2 2013
($ in thousands)
                                                                         
                                           Apartment    Purchase/
                              Properties   Units        (Sale) Price     Cap
                                                                         Rate
                 3/31/2013    416          118,778
Acquisitions:
Consolidated:
Rental                        1            322          $ 91,500         4.7 %
Properties
Land Parcel                   —            —            $ 16,500
(one)
Dispositions:
Consolidated:
Rental                        (19    )     (5,745   )   $ (729,895   )   6.1 %
Properties
Land Parcels                  —            —            $ (59,750    )
(five)
Other (1)                     —            —            $ (30,734    )
Configuration                 —           33       
Changes
                                                                         
                 6/30/2013    398         113,388  
                                                              
                                                                         
Portfolio Rollforward 2013
($ in thousands)
                                                                         
                                           Apartment    Purchase/
                              Properties   Units        (Sale) Price     Cap
                                                                         Rate
                 12/31/2012   403          115,370
Acquisitions:
Consolidated:
Rental                        73           20,914       $ 8,524,427      4.9 %
Properties (2)
Master-Leased                 3            853          $ 250,752        5.6 %
Properties (2)
Uncompleted
Developments                  —            —            $ 36,583
(two)
Land Parcels                  —            —            $ 255,918
(fourteen) (2)
Unconsolidated
(3):
Rental                        1            336          $ 5,113          5.8 %
Properties
Uncompleted
Developments                  —            —            $ 14,854
(two) (2)
Land Parcel                   —            —            $ 4,097
(one)
Dispositions:
Consolidated:
Rental                        (82    )     (24,197  )   $ (3,705,082 )   6.0 %
Properties
Land Parcels                  —            —            $ (59,750    )
(five)
Other (1)                     —            —            $ (30,734    )
Configuration                 —           112      
Changes
                                                                         
                 6/30/2013    398         113,388  
                                                                         

      Represents a 97,000 square foot commercial building adjacent to our
(1)  Harbor Steps apartment property in downtown Seattle that was acquired in
      2011.
      
      Amounts have been adjusted to reflect Q2 2013 changes to the purchase
(2)   price allocation for certain assets which were acquired in the Archstone
      transaction.
      
      EQR owns various equity interests in these unconsolidated rental
(3)   properties, uncompleted developments and land parcels. Purchase price
      listed is EQR's net investment price.

                                                                       
Equity Residential
                                                                          
Second Quarter 2013 vs. Second Quarter 2012
Same Store Results/Statistics for 85,509 Same Store Apartment Units
$ in thousands (except for Average Rental Rate)
                                                                                 
              Results                                    Statistics
                                                                                 
                                                         Average
                                                         Rental
Description   Revenues      Expenses       NOI (1)       Rate (2)    Occupancy   Turnover
                                                                                 
Q2 2013       $ 461,195     $ 158,469      $ 302,726     $ 1,884     95.5   %    14.9  %
Q2 2012       $ 439,744    $ 153,009     $ 286,735    $ 1,803    95.2   %    15.1  %
                                                                                 
Change        $ 21,451     $ 5,460       $ 15,991     $ 81       0.3    %    (0.2  %)
                                                                                 
Change          4.9     %     3.6     %      5.6     %     4.5   %
                                                                     
                                                                                 
Second Quarter 2013 vs. First Quarter 2013
Same Store Results/Statistics for 87,238 Same Store Apartment Units
$ in thousands (except for Average Rental Rate)
                                                                                 
              Results                                    Statistics
                                                         
                                                         Average
                                                         Rental
Description   Revenues      Expenses       NOI (1)       Rate (2)    Occupancy   Turnover
                                                                                 
Q2 2013       $ 477,378     $ 164,076      $ 313,302     $ 1,912     95.5   %    14.9  %
Q1 2013       $ 467,083    $ 166,462     $ 300,621    $ 1,881    95.0   %    12.3  %
                                                                                 
Change        $ 10,295     $ (2,386  )    $ 12,681     $ 31       0.5    %    2.6   %
                                                                                 
Change          2.2     %     (1.4    %)     4.2     %     1.6   %
                                                                     
                                                                                 
June YTD 2013 vs. June YTD 2012
Same Store Results/Statistics for 84,965 Same Store Apartment Units
$ in thousands (except for Average Rental Rate)
                                                                                 
              Results                                    Statistics
                                                                                 
                                                         Average
                                                         Rental
Description   Revenues      Expenses       NOI (1)       Rate (2)    Occupancy   Turnover
                                                                                 
YTD 2013      $ 906,902     $ 317,324      $ 589,578     $ 1,869     95.3   %    27.2  %
YTD 2012      $ 864,071    $ 306,986     $ 557,085    $ 1,787    95.0   %    27.2  %
                                                                                 
Change        $ 42,831     $ 10,338      $ 32,493     $ 82       0.3    %    0.0   %
                                                                                 
Change          5.0     %     3.4     %      5.8     %     4.6   %
                                                                                 

      The Company's primary financial measure for evaluating each of its
      apartment communities is net operating income ("NOI"). NOI represents
      rental income less property and maintenance expense, real estate tax and
(1)  insurance expense and property management expense. 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 communities. See page 29
      for reconciliations from operating income.
      
(2)   Average rental rate is defined as total rental revenues divided by the
      weighted average occupied apartment units for the period.

                                                                                    
Equity Residential
Second Quarter 2013 vs. Second Quarter 2012
Same Store Results/Statistics by Market
                                                                                            
                                                            Increase (Decrease) from Prior Year's Quarter
                
                            Q2 2013   Q2 2013   Q2 2013
                            % of      Average   Weighted                                    Average
                Apartment   Actual    Rental    Average                                     Rental
Markets/Metro   Units       NOI       Rate      Occupancy   Revenues   Expenses   NOI       Rate      Occupancy
Areas                                 (1)       %                                           (1)
                                                                                                      
Core:
Washington DC   10,564      14.7  %   $ 2,107   95.2    %   2.3   %    0.8   %    3.0  %    2.7  %    (0.4  %)
New York        7,176       14.2  %   3,461     96.1    %   4.7   %    6.2   %    3.7  %    4.9  %    (0.2  %)
Los Angeles     8,996       10.9  %   1,918     95.6    %   4.8   %    5.0   %    4.7  %    3.8  %    0.9   %
Boston (2)      5,832       9.9   %   2,636     95.3    %   4.7   %    3.4   %    5.4  %    4.8  %    (0.1  %)
South Florida   10,637      9.5   %   1,519     95.5    %   4.8   %    2.4   %    6.2  %    4.1  %    0.5   %
San Francisco   7,943       9.5   %   1,913     95.4    %   9.1   %    1.6   %    13.3 %    8.8  %    0.2   %
Seattle         7,029       7.5   %   1,695     95.5    %   5.6   %    4.5   %    6.2  %    5.3  %    0.3   %
Denver          6,767       5.6   %   1,278     95.9    %   7.7   %    10.1  %    6.6  %    7.1  %    0.6   %
San Diego       4,627       5.5   %   1,847     95.8    %   4.0   %    3.4   %    4.2  %    2.8  %    1.0   %
Orange          3,490       3.9   %   1,689     95.6    %   3.7   %    0.8   %    5.0  %    3.5  %    0.2   %
County, CA
Subtotal –      73,061      91.2  %   2,000     95.6    %   4.9   %    3.8   %    5.6  %    4.7  %    0.3   %
Core
                                                                                                      
Non-Core:
Inland          3,081       3.0   %   1,508     95.4    %   4.3   %    4.0   %    4.4  %    3.6  %    0.7   %
Empire, CA
Orlando         3,383       2.3   %   1,123     95.6    %   4.7   %    0.6   %    7.3  %    4.1  %    0.6   %
New England
(excluding      1,965       1.2   %   1,221     95.1    %   2.1   %    4.8   %    (0.3 %)   2.9  %    (0.7  %)
Boston)
Phoenix         1,776       0.9   %   894       95.0    %   1.4   %    (0.8  %)   2.8  %    1.0  %    0.5   %
Atlanta         1,007       0.7   %   1,244     95.5    %   3.1   %    (1.4  %)   6.5  %    3.8  %    (0.7  %)
Tacoma, WA      1,236       0.7   %   1,021     94.5    %   11.5  %    (1.6  %)   23.7 %    3.7  %    6.6   %
Subtotal –      12,448      8.8   %   1,201     95.3    %   4.2   %    1.8   %    5.8  %    3.3  %    0.9   %
Non-Core
                                                                                              
Total           85,509      100.0 %   $ 1,884   95.5    %   4.9   %    3.6   %    5.6  %    4.5  %    0.3   %
                                                                                                      
(1) Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment
units for the period.
                                                                                                      
(2) Quarter over quarter same store revenues in Boston were negatively impacted by non-residential related
income. Residential-only revenues increased in Boston 5.4% quarter over quarter.

                                                                                            
Equity Residential
Second Quarter 2013 vs. First Quarter 2013
Same Store Results/Statistics by Market
                                                                                                      
                                                            Increase (Decrease) from Prior Quarter
                
                            Q2 2013   Q2 2013   Q2 2013
                            % of      Average   Weighted                                    Average
                Apartment   Actual    Rental    Average                                     Rental
Markets/Metro   Units       NOI       Rate      Occupancy   Revenues   Expenses   NOI       Rate      Occupancy
Areas                                 (1)       %                                           (1)
                                                                                                      
Core:
New York        7,687       15.3  %   $ 3,568   96.1    %   1.5   %    (4.6  %)   5.8  %    0.6  %    0.8   %
Washington DC   11,077      15.2  %   2,154     95.2    %   2.1   %    (2.1  %)   4.0  %    1.3  %    0.7   %
Los Angeles     9,095       10.7  %   1,922     95.5    %   1.2   %    (1.5  %)   2.6  %    1.4  %    (0.2  %)
San Francisco   8,381       9.7   %   1,938     95.3    %   3.6   %    (2.9  %)   7.3  %    2.7  %    0.8   %
Boston (2)      5,832       9.5   %   2,636     95.3    %   4.1   %    (5.6  %)   9.3  %    2.9  %    1.0   %
South Florida   10,637      9.2   %   1,519     95.5    %   1.8   %    1.3   %    2.1  %    1.3  %    0.3   %
Seattle         7,029       7.2   %   1,695     95.5    %   2.2   %    0.7   %    2.9  %    1.6  %    0.6   %
Denver          6,935       5.6   %   1,281     95.8    %   2.2   %    12.6  %    (1.9 %)   2.1  %    0.1   %
San Diego       4,627       5.3   %   1,847     95.8    %   3.3   %    3.7   %    3.2  %    1.2  %    2.1   %
Orange          3,490       3.8   %   1,689     95.6    %   1.7   %    (4.2  %)   4.4  %    1.5  %    0.2   %
County, CA
Subtotal –      74,790      91.5  %   2,030     95.5    %   2.3   %    (1.5  %)   4.3  %    1.7  %    0.6   %
Core
                                                                                                      
Non-Core:
Inland          3,081       2.9   %   1,508     95.4    %   2.5   %    4.9   %    1.4  %    1.5  %    0.8   %
Empire, CA
Orlando         3,383       2.2   %   1,123     95.6    %   1.0   %    (0.7  %)   2.1  %    1.6  %    (0.6  %)
New England
(excluding      1,965       1.1   %   1,221     95.1    %   1.4   %    (7.8  %)   11.7 %    1.1  %    0.3   %
Boston)
Phoenix         1,776       0.9   %   894       95.0    %   0.1   %    1.1   %    (0.5 %)   0.1  %    (0.1  %)
Atlanta         1,007       0.7   %   1,244     95.5    %   2.7   %    3.7   %    1.9  %    2.6  %    0.0   %
Tacoma, WA      1,236       0.7   %   1,021     94.5    %   2.1   %    (8.1  %)   11.3 %    2.2  %    (0.1  %)
Subtotal –      12,448      8.5   %   1,201     95.3    %   1.7   %    (1.0  %)   3.4  %    1.5  %    0.1   %
Non-Core
                                                                                              
Total           87,238      100.0 %   $ 1,912   95.5    %   2.2   %    (1.4  %)   4.2  %    1.6  %    0.5   %
                                                                                                      
(1) Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment
units for the period.
                                                                                                      
(2) Sequential same store revenues in Boston were positively impacted by non-residential related income.
Residential-only revenues increased in Boston 2.7% sequentially.

                                                                                    
Equity Residential
June YTD 2013 vs. June YTD 2012
Same Store Results/Statistics by Market
                                                                                            
                                                            Increase (Decrease) from Prior Year
                
                            June      June
                            YTD 13    YTD 13
                            % of      Average   June YTD                                    Average
                                                13
                Apartment   Actual    Rental    Weighted                                    Rental
                                                Average
Markets/Metro   Units       NOI       Rate      Occupancy   Revenues   Expenses   NOI       Rate      Occupancy
Areas                                 (1)       %                                           (1)
                                                                                                      
Core:
Washington DC   10,564      14.8  %   $ 2,095   94.9   %    3.0   %    0.4   %    4.1  %    3.2  %    (0.2  %)
New York        7,176       14.2  %   3,455     95.7   %    5.1   %    6.0   %    4.5  %    5.3  %    (0.1  %)
Los Angeles     8,894       10.9  %   1,900     95.6   %    4.7   %    4.3   %    4.8  %    3.9  %    0.7   %
South Florida   10,637      9.7   %   1,509     95.3   %    4.7   %    1.9   %    6.4  %    4.3  %    0.3   %
Boston (2)      5,832       9.7   %   2,599     94.8   %    4.0   %    5.8   %    3.1  %    4.2  %    (0.1  %)
San Francisco   7,820       9.3   %   1,892     95.0   %    9.2   %    2.0   %    13.4 %    8.6  %    0.4   %
Seattle         6,710       7.2   %   1,677     95.2   %    5.6   %    3.6   %    6.7  %    5.6  %    0.1   %
Denver          6,767       5.9   %   1,265     95.8   %    8.1   %    5.1   %    9.5  %    7.6  %    0.4   %
San Diego       4,627       5.6   %   1,837     94.8   %    3.6   %    2.7   %    4.0  %    2.9  %    0.6   %
Orange          3,490       3.9   %   1,676     95.5   %    4.1   %    3.7   %    4.3  %    3.8  %    0.2   %
County, CA
Subtotal –      72,517      91.2  %   1,985     95.3   %    5.0   %    3.6   %    5.8  %    4.7  %    0.2   %
Core
                                                                                                      
Non-Core:
Inland          3,081       3.0   %   1,497     95.0   %    3.6   %    1.1   %    4.8  %    3.0  %    0.6   %
Empire, CA
Orlando         3,383       2.3   %   1,114     95.9   %    5.3   %    0.2   %    8.5  %    4.5  %    0.7   %
New England
(excluding      1,965       1.1   %   1,215     95.0   %    2.9   %    6.7   %    (0.7 %)   3.1  %    (0.1  %)
Boston)
Phoenix         1,776       1.0   %   893       95.0   %    2.0   %    (1.9  %)   4.5  %    1.5  %    0.5   %
Atlanta         1,007       0.7   %   1,228     95.5   %    4.5   %    (1.7  %)   9.2  %    5.1  %    (0.6  %)
Tacoma, WA      1,236       0.7   %   1,010     94.6   %    7.0   %    (0.3  %)   13.8 %    1.9  %    4.6   %
Subtotal –      12,448      8.8   %   1,192     95.2   %    4.1   %    1.3   %    5.9  %    3.2  %    0.8   %
Non-Core
                                                                                              
Total           84,965      100.0 %   $ 1,869   95.3   %    5.0   %    3.4   %    5.8  %    4.6  %    0.3   %
                                                                                                      
(1) Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment
units for the period.
                                                                                                      
(2) June year over year same store revenues in Boston were negatively impacted by non-residential related
income. Residential-only revenues increased in Boston 5.7% June year over year.


Equity Residential
                                                             
Second Quarter 2013 vs. Second Quarter 2012
Same Store Operating Expenses for 85,509 Same Store Apartment Units
$ in thousands
                                                                   
                                                                   % of Actual
                                                                   Q2 2013
                    Actual      Actual      $            %         Operating
                    Q2 2013     Q2 2012     Change       Change    Expenses
                                                                   
Real estate taxes   $ 51,875    $ 48,219    $ 3,656      7.6  %    32.7    %
On-site payroll       34,134      33,537      597        1.8  %    21.5    %
(1)
Utilities (2)         23,199      22,182      1,017      4.6  %    14.6    %
Repairs and           22,002      21,173      829        3.9  %    13.9    %
maintenance (3)
Property
management costs      15,681      16,490      (809   )   (4.9 %)   9.9     %
(4)
Insurance             4,820       4,811       9          0.2  %    3.1     %
Leasing and           2,614       2,426       188        7.7  %    1.7     %
advertising
Other on-site
operating            4,144      4,171      (27    )   (0.6 %)   2.6     %
expenses (5)
                                                                   
Same store
operating           $ 158,469   $ 153,009   $ 5,460     3.6  %    100.0   %
expenses
                                                         
                                                                   
June YTD 2013 vs. June YTD 2012
Same Store Operating Expenses for 84,965 Same Store Apartment Units
$ in thousands
                                                      
                                                                   % of Actual
                                                                   YTD 2013
                    Actual      Actual      $            %         Operating
                    YTD 2013    YTD 2012    Change       Change    Expenses
                                                                   
Real estate taxes   $ 102,540   $ 95,786    $ 6,754      7.1  %    32.3    %
On-site payroll       68,110      67,705      405        0.6  %    21.5    %
(1)
Utilities (2)         48,523      46,354      2,169      4.7  %    15.3    %
Repairs and           42,778      40,663      2,115      5.2  %    13.5    %
maintenance (3)
Property
management costs      30,835      32,403      (1,568 )   (4.8 %)   9.7     %
(4)
Insurance             10,167      9,559       608        6.4  %    3.2     %
Leasing and           4,997       4,697       300        6.4  %    1.6     %
advertising
Other on-site
operating            9,374      9,819      (445   )   (4.5 %)   2.9     %
expenses (5)
                                                                   
Same store
operating           $ 317,324   $ 306,986   $ 10,338    3.4  %    100.0   %
expenses


      On-site payroll - Includes payroll and related expenses for on-site
(1)  personnel including property managers, leasing consultants and
      maintenance staff.
      
      Utilities - Represents gross expenses prior to any recoveries under the
(2)   Resident Utility Billing System ("RUBS"). Recoveries are reflected in
      rental income.
      
      Repairs and maintenance - Includes general maintenance costs, apartment
(3)   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 costs.
      
      Property management costs - Includes payroll and related expenses for
      departments, or portions of departments, that directly support on-site
(4)   management. These include such departments as regional and corporate
      property management, property accounting, human resources, training,
      marketing and revenue management, procurement, real estate tax, property
      legal services and information technology.
      
      Other on-site operating expenses - Includes ground lease costs and
(5)   administrative costs such as office supplies, telephone and data charges
      and association and business licensing fees.

                                                                                    
Equity Residential
                                                                                            
Debt Summary as of June 30, 2013
(Amounts in thousands)
                                                                                                  
                                                                                                  Weighted
                                                                                       Weighted   Average
                                                                             % of      Average    Maturities
                                                              Amounts (1)    Total     Rates      (years)
                                                                                       (1)
                                                                                                  
Secured                                                       $ 6,247,612    53.3  %   4.37  %    7.0
Unsecured                                                      5,475,954    46.7  %   4.94  %    5.0     
                                                                                                  
Total                                                         $ 11,723,566   100.0 %   4.65  %    6.1     
                                                                                                  
Fixed Rate Debt:
Secured – Conventional                                        $ 5,565,166    47.5  %   4.79  %    5.5
Unsecured – Public/Private                                     4,725,954    40.3  %   5.64  %    5.6     
                                                                                                  
Fixed Rate Debt                                                10,291,120   87.8  %   5.19  %    5.5     
                                                                                                  
Floating Rate Debt:
Secured – Conventional                                          57,261       0.5   %   2.34  %    1.3
Secured – Tax Exempt                                            625,185      5.3   %   0.60  %    19.6
Unsecured – Public/Private                                      750,000      6.4   %   1.81  %    1.5
Unsecured – Revolving Credit Facility                          —            —        1.27  %    4.8     
                                                                                                  
Floating Rate Debt                                             1,432,446    12.2  %   1.30  %    9.6     
                                                                                                  
Total                                                         $ 11,723,566   100.0 %   4.65  %    6.1     
                                                                                                  
(1) Net of the effect of any derivative instruments. Weighted average rates are for the six months ended
June 30, 2013.
                                                                                                  
Note: The Company capitalized interest of approximately $20.0 million and $10.1 million during the six
months ended June 30, 2013 and 2012, respectively. The Company capitalized interest of approximately $11.6
million and $5.1 million during the quarters ended June 30, 2013 and 2012, respectively.
                                                                                    
                                                                                                  
Debt Maturity Schedule as of June 30, 2013
(Amounts in thousands)
                                           
                                                                                       Weighted   Weighted
                                                                                       Average    Average
                                                                                       Rates
                           Fixed            Floating                         % of      on Fixed   Rates on
      Year                 Rate (1)         Rate (1)          Total          Total     Rate       Total Debt
                                                                                       Debt (1)   (1)
                                                                                                  
      2013                 $ 5,614          $ 259             $ 5,873        0.1   %   5.47  %    5.38    %
      2014                   1,517,354        49,017            1,566,371    13.4  %   5.67  %    5.57    %
      2015                   419,785          750,000     (2)   1,169,785    10.0  %   6.29  %    3.14    %
      2016                   1,192,559        —                 1,192,559    10.2  %   5.34  %    5.34    %
      2017                   2,171,013  (3)   456               2,171,469    18.5  %   6.20  %    6.20    %
      2018                   83,599           724               84,323       0.7   %   5.63  %    5.63    %
      2019                   805,844          20,766            826,610      7.1   %   5.48  %    5.35    %
      2020                   1,677,783        809               1,678,592    14.3  %   5.49  %    5.49    %
      2021                   1,194,390        856               1,195,246    10.2  %   4.64  %    4.64    %
      2022                   228,045          905               228,950      1.9   %   3.17  %    3.18    %
      2023+                  806,868          675,944           1,482,812    12.6  %   4.23  %    2.51    %
      Premium/(Discount)    188,266         (67,290   )      120,976      1.0   %   N/A       N/A     
                                                                                                  
      Total                $ 10,291,120     $ 1,432,446      $ 11,723,566   100.0 %   5.43  %    4.86    %
                                                                                                  
(1)   Net of the effect of any derivative instruments. Weighted average rates are as of June 30, 2013.
                                                                                                  
(2)   Includes the Company's senior unsecured $750.0 million delayed draw term loan facility that matures on
      January 11, 2015 and is subject to a one-year extension option exercisable by the Company.
                                                                                                  
      Includes $1.27 billion in Archstone mortgage notes payable of which all or a portion of can be
(3)   modified and extended to mature in 2023 under certain circumstances. The Company and the lender are in
      the process of modifying and extending this debt.

*Story too large*
                                                         
Equity Residential
Unsecured Debt Summary as of June 30, 2013
(Amounts in thousands)
                                                           
                                                     Unamortized
                  Coupon    Due        Face          Premium/      Net
                  Rate      Date       Amount        (Discount)    Balance
                                                                   
  Fixed Rate
  Notes:
                  5.250 %   9/15/14    $ 500,000     $  (74)       $ 499,926
                  6.584 %   4/13/15      300,000        (193)        299,807
                  5.125 %   3/15/16      500,000        (144)        499,856
                  5.375 %   8/1/16       400,000        (572)        399,428
                  5.750 %   6/15/17      650,000        (2,034)      647,966
                  7.125 %   10/15/17     150,000        (278)        149,722
                  4.750 %   7/15/20      600,000        (3,205)      596,795
                  4.625 %   12/15/21     1,000,000      (3,207)      996,793
                  3.000 %   4/15/23      500,000        (4,339)      495,661
                  7.570 %   8/15/26     140,000       —           140,000
                                                                   
                                        4,740,000     (14,046)    4,725,954
  Floating Rate
  Notes:

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