Equity Residential Reports First Quarter 2014 Results

  Equity Residential Reports First Quarter 2014 Results                     11% Increase in Normalized FFO per Share  Business Wire  CHICAGO -- April 30, 2014  Equity Residential (NYSE: EQR) today reported results for the quarter ended March 31, 2014. All per share results are reported as available to common shares on a diluted basis.  “As expected, fundamentals across our core markets, with the exception of Washington DC, remain favorable with continued strong demand and manageable new supply,” said David J. Neithercut, Equity Residential’s President and CEO. “As we approach our primary leasing season with occupancy of 95.9% and renewal rates achieved to date of 5.3%, we are well positioned for yet another year of strong revenue growth.”  First Quarter 2014  FFO (Funds from Operations), as defined by the National Association of Real Estate Investment Trusts (NAREIT), for the first quarter of 2014 was $0.71 per share compared to $0.22 per share in the first quarter of 2013. The difference is due primarily to the expenses and prepayment penalties the company incurred in the first quarter of 2013 in connection with the Archstone acquisition, along with the items described below.  For the first quarter of 2014, the company reported Normalized FFO of $0.71 per share compared to $0.64 per share in the same period of 2013. The following items impacted Normalized FFO per share in the quarter:    *the positive impact of approximately $0.04 per share from higher same     store net operating income (NOI) and approximately $0.01 per share from     NOI from non-same store properties currently in lease up; and   *the positive impact of approximately $0.02 per share from lower total     interest expense.  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. A reconciliation and definition of Normalized FFO are provided on pages 23 and 25 of this release and the company has included guidance for Normalized FFO on page 24 of this release.  For the first quarter of 2014, the company reported earnings of $0.22 per share compared to $3.01 per share in the first quarter of 2013. The difference is due primarily to approximately $1.2 billion in higher gains on property sales in the first quarter of 2013, partially offset by higher depreciation expense in the first quarter of 2013 as a result of the Archstone acquisition as well as the expenses and prepayment penalties incurred in connection with the Archstone acquisition.  Same Store Results  The company’s same store results include 18,465 stabilized apartment units acquired in the Archstone acquisition that are owned and managed by the company.  On a same store first quarter to first quarter comparison, which includes 100,984 apartment units, revenues increased 4.0%, expenses increased 3.2% and NOI increased 4.4%.  Investment Activity  During the first quarter of 2014, the company acquired a 430-unit apartment property in Los Angeles for a purchase price of approximately $143.0 million and a capitalization (cap) rate of 4.9%. Also during the quarter, the company acquired additional development rights at one of its existing land sites in Manhattan for approximately $5.5 million.  The company sold no properties or land parcels during the first quarter of 2014.  During the first quarter of 2014, the company completed construction on five development projects, consisting of 1,290 apartment units, at a total development cost of approximately $368.3 million. Two of these properties are located in Seattle and one each in Southern California, South Florida and Washington, DC.  Also during the quarter, the company started construction on three development projects, which will consist of a total of 1,145 apartment units, at a total development cost of approximately $614.3 million. Two of these properties are located in San Francisco and one in Southern California.  Second Quarter 2014 Guidance  The company has established a Normalized FFO guidance range of $0.74 to $0.78 per share for the second quarter of 2014. The difference between the company’s first quarter Normalized FFO of $0.71 per share and the midpoint of the second quarter guidance range of $0.76 per share is due primarily to:    *the positive impact of approximately $0.05 per share from higher NOI from     same store properties and properties in lease up;   *the positive impact of approximately $0.01 per share from other items     including lower general and administrative expenses; and   *the negative impact of approximately $0.01 per share from higher total     interest expense.  Second Quarter 2014 Earnings and Conference Call  Equity Residential expects to announce second quarter 2014 results on Tuesday, July 29, 2014 and host a conference call to discuss those results at 10:00 a.m. CT on Wednesday, July 30, 2014.  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 396 properties consisting of 111,537 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, Thursday, May 1, 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)                                                                                                                  Quarter Ended March 31,                                                   2014           2013 REVENUES Rental income                                     $ 630,725      $ 502,562 Fee and asset management                           2,717        2,160      Total revenues                                     633,442      504,722                                                                      EXPENSES Property and maintenance                            125,573        98,529 Real estate taxes and insurance                     82,094         65,095 Property management                                 22,118         22,489 Fee and asset management                            1,662          1,646 Depreciation                                        185,167        196,222 General and administrative                         17,576       16,495     Total expenses                                     434,190      400,476                                                                      Operating income                                    199,252        104,246                                                                   Interest and other income                           605            320 Other expenses                                      (657     )     (21,719   ) Interest: Expense incurred, net                               (113,049 )     (194,467  ) Amortization of deferred financing costs           (2,792   )    (6,948    ) Income (loss) before income and other taxes, (loss) from investments in unconsolidated entities, net (loss) on sales of land parcels       83,359         (118,568  ) and discontinued operations Income and other tax (expense) benefit              (222     )     (405      ) (Loss) from investments in unconsolidated           (1,409   )     (46,366   ) entities Net (loss) on sales of land parcels                (30      )    —          Income (loss) from continuing operations            81,698         (165,339  ) Discontinued operations, net                       1,034        1,226,373  Net income                                          82,732         1,061,034 Net (income) attributable to Noncontrolling Interests: Operating Partnership                               (3,093   )     (43,323   ) Partially Owned Properties                         (504     )    (25       ) Net income attributable to controlling              79,135         1,017,686 interests Preferred distributions                            (1,036   )    (1,036    ) Net income available to Common Shares             $ 78,099      $ 1,016,650                                                                    Earnings per share – basic: Income (loss) from continuing operations          $ 0.21        $ (0.47     ) available to Common Shares Net income available to Common Shares             $ 0.22        $ 3.01       Weighted average Common Shares outstanding         360,470      337,532                                                                      Earnings per share – diluted: Income (loss) from continuing operations          $ 0.21        $ (0.47     ) available to Common Shares Net income available to Common Shares             $ 0.22        $ 3.01       Weighted average Common Shares outstanding         376,384      337,532                                                                      Distributions declared per Common Share           $ 0.50        $ 0.40       outstanding   Equity Residential Consolidated Statements of Funds From Operations and Normalized Funds From Operations (Amounts in thousands except per share data) (Unaudited)                                                                                                                Quarter Ended March 31,                                                   2014          2013 Net income                                        $ 82,732      $ 1,061,034 Net (income) attributable to Noncontrolling Interests – Partially Owned Properties                          (504    )     (25        ) Preferred distributions                            (1,036  )    (1,036     ) Net income available to Common Shares and Units     81,192        1,059,973                                                                  Adjustments: Depreciation                                        185,167       196,222 Depreciation – Non-real estate additions            (1,188  )     (1,216     ) Depreciation – Partially Owned Properties           (1,068  )     (1,275     ) Depreciation – Unconsolidated Properties            1,603         260 Discontinued operations: Depreciation                                        —             23,816 Net (gain) on sales of discontinued operations      (71     )     (1,198,922 ) Gain on sale of Equity Corporate Housing (ECH)     —           250         FFO available to Common Shares and Units (1)        265,635       79,108 (3) (4)                                                                  Adjustments (see page 23 for additional detail): Asset impairment and valuation allowances           —             — Property acquisition costs and write-off of         474           67,668 pursuit costs Debt extinguishment (gains) losses, including prepayment penalties, preferred share redemptions and non-cash convertible debt           —             79,643 discounts (Gains) losses on sales of non-operating assets, net of income and other tax expense (benefit)                                           9             (250       ) Other miscellaneous non-comparable items           (463    )    —           Normalized FFO available to Common Shares and     $ 265,655    $ 226,169     Units (2) (3) (4)                                                                  FFO (1) (3)                                       $ 266,671     $ 80,144 Preferred distributions                            (1,036  )    (1,036     ) FFO available to Common Shares and Units -        $ 265,635    $ 79,108      basic and diluted (1) (3) (4) FFO per share and Unit - basic                    $ 0.71       $ 0.23        FFO per share and Unit - diluted                  $ 0.71       $ 0.22                                                                         Normalized FFO (2) (3)                            $ 266,691     $ 227,205 Preferred distributions                            (1,036  )    (1,036     ) Normalized FFO available to Common Shares and     $ 265,655    $ 226,169     Units - basic and diluted (2) (3) (4) Normalized FFO per share and Unit - basic         $ 0.71       $ 0.64        Normalized FFO per share and Unit - diluted       $ 0.71       $ 0.64                                                                         Weighted average Common Shares and Units           374,201     351,255     outstanding - basic Weighted average Common Shares and Units           376,384     353,656     outstanding - diluted                                                                                        See page 23 for additional detail regarding the adjustments from FFO Note:  to Normalized FFO. See page 25 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)                                                                                                              March 31,        December 31,                                                2014             2013 ASSETS Investment in real estate Land                                           $ 6,281,124      $ 6,192,512 Depreciable property                             19,623,472       19,226,047 Projects under development                       865,177          988,867 Land held for development                       295,357        393,522     Investment in real estate                        27,065,130       26,800,948 Accumulated depreciation                        (4,992,877 )    (4,807,709 ) Investment in real estate, net                   22,072,253       21,993,239 Cash and cash equivalents                        37,209           53,534 Investments in unconsolidated entities           205,068          178,526 Deposits – restricted                            91,081           103,567 Escrow deposits – mortgage                       43,995           42,636 Deferred financing costs, net                    55,754           58,486 Other assets                                    384,271        404,557     Total assets                                   $ 22,889,631    $ 22,834,545                                                                   LIABILITIES AND EQUITY Liabilities: Mortgage notes payable                         $ 5,167,626      $ 5,174,166 Notes, net                                       5,477,656        5,477,088 Lines of credit                                  298,000          115,000 Accounts payable and accrued expenses            161,838          118,791 Accrued interest payable                         78,140           78,309 Other liabilities                                321,043          347,748 Security deposits                                72,735           71,592 Distributions payable                           187,759        243,511     Total liabilities                               11,764,797     11,626,205                                                                   Commitments and contingencies                                                                  Redeemable Noncontrolling Interests –           405,276        363,144     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 March 31, 2014 and             50,000           50,000 December 31, 2013 Common Shares of beneficial interest, $0.01 par value; 1,000,000,000 shares authorized; 361,148,189 shares issued and outstanding as of March 31, 2014 and 360,479,260 shares issued and outstanding as of December 31,        3,611            3,605 2013 Paid in capital                                  8,541,046        8,561,500 Retained earnings                                1,944,798        2,047,258 Accumulated other comprehensive (loss)          (162,894   )    (155,162   ) Total shareholders’ equity                       10,376,561       10,507,201 Noncontrolling Interests: Operating Partnership                            215,339          211,412 Partially Owned Properties                      127,658        126,583     Total Noncontrolling Interests                  342,997        337,995     Total equity                                    10,719,558     10,845,196  Total liabilities and equity                   $ 22,889,631    $ 22,834,545    Equity Residential Portfolio Summary As of March 31, 2014                                                                                                        % of         Average                                    Apartment   Stabilized   Rental Markets/Metro Areas   Properties   Units       NOI (1)      Rate (2)                                                              Core: Washington DC         57           18,652      18.6%        $  2,222 New York              38           10,330      16.7%           3,771 San Francisco         51           13,208      13.0%           2,281 Los Angeles           59           12,670      12.1%           2,125 Boston                34           7,816       10.1%           2,806 South Florida         36           11,731      7.4%            1,586 Seattle               40           8,116       6.7%            1,833 Denver                19           6,935       4.4%            1,352 San Diego             13           3,505       3.1%            1,938 Orange County, CA     11           3,490       2.9%           1,738 Subtotal – Core       358          96,453      95.0%           2,231                                                              Non-Core: Inland Empire, CA     10           3,081       2.1%            1,530 Orlando               10           3,383       1.7%            1,143 All Other Markets     16           3,561       1.2%           1,152 Subtotal – Non-Core   36           10,025      5.0%           1,265 Total                 394          106,478     100.0%         2,138                                                              Military Housing      2            5,059       —              —                                                              Grand Total           396          111,537     100.0%       $  2,138   Note: Projects under development are not included in the Portfolio Summary until construction has been completed.  (1) % of Stabilized NOI includes budgeted 2014 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.                                           (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 March 31, 2014                                                                                                                                  Apartment                                             Properties   Units Wholly Owned Properties                     367             99,936 Master-Leased Properties - Consolidated     3               853 Partially Owned Properties - Consolidated   20              4,020 Partially Owned Properties -                4               1,669 Unconsolidated Military Housing                            2             5,059                                                                                                                     396           111,537                                                                                                                                                                                                              Portfolio Rollforward Q1 2014 ($ in thousands)                                                                                                                     Apartment    Purchase/                                Properties   Units        (Sale)        Cap                                                          Price         Rate                   12/31/2013   390          109,855 Acquisitions: Rental Properties -                   1            430          $  143,000    4.9  % Consolidated Land Parcel -                  —            —            $  5,500 Consolidated Completed Developments -                 5            1,290 Consolidated Configuration                  —            (38      ) Changes                                                                                           3/31/2014    396          111,537                Equity Residential                                                                                        First Quarter 2014 vs. First Quarter 2013       Same Store Results/Statistics for 100,984 Same Store Apartment Units       $ in thousands (except for Average Rental Rate)                                                                                                             Results                                    Statistics                                                                Average                                                                Rental       Description   Revenues      Expenses      NOI (1)        Rate (2)    Occupancy   Turnover                                                                                               Q1 2014       $ 613,878     $ 218,239     $ 395,639      $ 2,133     95.1  %     11.3  %       Q1 2013       $ 590,452    $ 211,485    $ 378,967     $ 2,053    95.0  %     12.1  %                                                                                               Change        $ 23,426     $ 6,754      $ 16,672      $ 80       0.1   %     (0.8  %)                                                                                               Change          4.0     %     3.2     %     4.4     %      3.9   %                                                                                                                                                                                                                                                                                                                                                           First Quarter 2014 vs. Fourth Quarter 2013       Same Store Results/Statistics for 101,494 Same Store Apartment Units       $ in thousands (except for Average Rental Rate)                                                                                                             Results                                    Statistics                                                                Average                                                                Rental       Description   Revenues      Expenses      NOI (1)        Rate (2)    Occupancy   Turnover                                                                                               Q1 2014       $ 616,874     $ 219,200     $ 397,674      $ 2,132     95.1  %     11.3  %       Q4 2013       $ 613,776    $ 202,649    $ 411,127     $ 2,116    95.3  %     12.2  %                                                                                               Change        $ 3,098      $ 16,551     $ (13,453 )    $ 16       (0.2  %)    (0.9  %)                                                                                               Change          0.5     %     8.2     %     (3.3    %)     0.8   %                                                                                               Note: Same store results/statistics include 18,465 stabilized apartment units acquired in       the Archstone acquisition that are owned and managed by the Company.                                                                                               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 insurance expense and property management (1)   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 25 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 First Quarter 2014 vs. First Quarter 2013 Same Store Results/Statistics by Market                                                                                                                                                                                                                                                                 Increase (Decrease) from Prior Year's Quarter                             Q1 2014   Q1 2014   Q1 2014                             % 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   17,553      18.5  %   $ 2,219   94.5    %   (0.5  %)   4.2   %    (2.8 %)   (0.3 %)   (0.3  %) New York        10,330      16.4  %     3,762   95.6    %   3.0   %    7.2   %    0.1  %    2.8  %    0.2   % San Francisco   12,764      13.8  %     2,238   94.8    %   8.4   %    (5.3  %)   16.7 %    8.0  %    0.3   % Los Angeles     11,139      10.9  %     2,076   95.2    %   4.6   %    (1.0  %)   7.9  %    4.6  %    (0.1  %) Boston (2)      7,722       10.1  %     2,812   95.1    %   4.8   %    9.6   %    2.3  %    3.8  %    0.9   % South Florida   10,834      7.6   %     1,564   95.3    %   4.8   %    3.1   %    5.8  %    4.5  %    0.1   % Seattle         7,411       6.3   %     1,786   95.0    %   6.7   %    4.3   %    7.9  %    6.4  %    0.2   % Denver          6,935       4.8   %     1,344   95.2    %   6.6   %    3.2   %    7.9  %    7.1  %    (0.5  %) San Diego       3,505       3.3   %     1,926   95.0    %   4.4   %    2.5   %    5.4  %    3.8  %    0.6   % Orange          3,490       3.1   %    1,744   95.1    %   4.5   %    (2.8  %)   7.8  %    4.8  %    (0.3  %) County, CA Subtotal –      91,683      94.8  %     2,221   95.0    %   4.0   %    3.1   %    4.5  %    3.9  %    0.1   % Core                                                                                                        Non-Core: Inland          3,081       2.3   %     1,536   95.5    %   4.5   %    5.8   %    3.8  %    3.4  %    0.9   % Empire, CA Orlando         3,383       1.8   %     1,141   94.8    %   1.8   %    0.9   %    2.3  %    3.3  %    (1.4  %) All Other       2,837       1.1   %    1,124   96.0    %   2.8   %    8.3   %    (2.7 %)   1.5  %    1.2   % Markets Subtotal –      9,301       5.2   %     1,267   95.4    %   3.1   %    5.1   %    1.9  %    2.9  %    0.2   % Non-Core                                                                                                Total           100,984     100.0 %   $ 2,133   95.1    %   4.0   %    3.2   %    4.4  %    3.9  %    0.1   %                                                                                                                                                                                                               Note: Same store results/statistics include 18,465 stabilized apartment units acquired in the Archstone acquisition that are owned and managed by the Company.                                                                                                        (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 positively impacted by non-residential related income. Residential-only same store revenues increased in Boston 3.6% quarter over quarter.   Equity Residential First Quarter 2014 vs. Fourth Quarter 2013 Same Store Results/Statistics by Market                                                                                                                                                                                                                                                                   Increase (Decrease) from Prior Quarter                             Q1 2014   Q1 2014   Q1 2014                             % 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   17,741      18.6  %   $ 2,223   94.5    %   (0.7  %)   12.7  %    (6.4  %)   (0.2 %)   (0.5  %) New York        10,330      16.3  %     3,762   95.6    %   0.6   %    14.4  %    (7.3  %)   1.1  %    (0.4  %) San Francisco   12,764      13.7  %     2,238   94.8    %   1.2   %    0.6   %    1.5   %    1.8  %    (0.6  %) Los Angeles     11,139      10.8  %     2,076   95.2    %   1.0   %    2.5   %    0.2   %    0.9  %    (0.1  %) Boston (2)      7,722       10.0  %     2,812   95.1    %   (0.5  %)   17.4  %    (8.3  %)   0.2  %    (0.7  %) South Florida   10,834      7.6   %     1,564   95.3    %   1.9   %    2.9   %    1.4   %    1.9  %    0.0   % Seattle         7,733       6.6   %     1,785   95.0    %   1.3   %    5.9   %    (0.9  %)   1.1  %    0.3   % Denver          6,935       4.8   %     1,344   95.2    %   1.1   %    (0.3  %)   1.6   %    1.1  %    (0.1  %) San Diego       3,505       3.3   %     1,926   95.0    %   (0.3  %)   0.2   %    (0.5  %)   0.5  %    (0.7  %) Orange          3,490       3.1   %    1,744   95.1    %   0.2   %    2.6   %    (0.7  %)   0.9  %    (0.7  %) County, CA Subtotal –      92,193      94.8  %     2,220   95.0    %   0.5   %    8.1   %    (3.2  %)   0.8  %    (0.3  %) Core                                                                                                         Non-Core: Inland          3,081       2.3   %     1,536   95.5    %   0.9   %    (0.4  %)   1.5   %    1.3  %    (0.3  %) Empire, CA Orlando         3,383       1.8   %     1,141   94.8    %   0.3   %    6.9   %    (3.2  %)   0.3  %    0.0   % All Other       2,837       1.1   %    1,124   96.0    %   0.9   %    22.8  %    (15.5 %)   0.1  %    0.8   % Markets Subtotal –      9,301       5.2   %     1,267   95.4    %   0.7   %    9.4   %    (4.2  %)   0.6  %    0.1   % Non-Core                                                                                                 Total           101,494     100.0 %   $ 2,132   95.1    %   0.5   %    8.2   %    (3.3  %)   0.8  %    (0.2  %)                                                                                                                                                                                                                 Note: Same store results/statistics include 18,465 stabilized apartment units acquired in the Archstone acquisition that are owned and managed by the Company.                                                                                                         (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 same store revenues decreased in Boston 1.2% sequentially.   Equity Residential                                                                                                                                   First Quarter 2014 vs. First Quarter 2013 Same Store Operating Expenses for 100,984 Same Store Apartment Units $ in thousands                                                                                                                                                                                                            % of Actual                                                                    Q1 2014                    Actual      Actual      $            %          Operating                    Q1 2014     Q1 2013     Change       Change     Expenses                                                                     Real estate        $ 72,828    $ 68,603    $ 4,225      6.2   %    33.4    % taxes On-site payroll      43,674      45,499      (1,825 )   (4.0  %)   20.0    % (1) Utilities (2)        38,262      33,414      4,848      14.5  %    17.5    % Repairs and          25,940      25,217      723        2.9   %    11.9    % maintenance (3) Property management costs     19,030      19,485      (455   )   (2.3  %)   8.7     % (4) Insurance            6,246       6,321       (75    )   (1.2  %)   2.9     % Leasing and          2,568       3,030       (462   )   (15.2 %)   1.2     % advertising Other on-site operating           9,691      9,916      (225   )   (2.3  %)   4.4     % expenses (5)                                                                     Same store operating          $ 218,239   $ 211,485   $ 6,754     3.2   %    100.0   % expenses             Note: Same store operating results include 18,465 stabilized apartment       units acquired in the Archstone acquisition that are owned and managed       by the Company.              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 March 31, 2014 (Amounts in thousands)                                                                                                                                                                                       Weighted                                                                          Weighted   Average                                                                          Average    Maturities                                      Amounts (1)        % of Total       Rates      (years)                                                                          (1)                                                                                                   Secured                              $ 5,167,626          47.2       %   4.22  %    8.2 Unsecured                             5,775,656        52.8       %   4.70  %    4.3                                                                                                       Total                                $ 10,943,282       100.0      %   4.47  %    6.1                                                                                                       Fixed Rate Debt: Secured – Conventional               $ 4,386,084          40.1       %   4.84  %    6.7 Unsecured – Public/Private            4,727,656        43.2       %   5.49  %    4.8                                                                                                       Fixed Rate Debt                       9,113,740        83.3       %   5.18  %    5.7                                                                                                       Floating Rate Debt: Secured – Conventional                 56,868             0.5        %   2.21  %    0.5 Secured – Tax Exempt                   724,674            6.6        %   0.63  %    17.0 Unsecured – Public/Private             750,000            6.9        %   1.33  %    0.8 Unsecured – Revolving Credit          298,000          2.7        %   0.98  %    4.0     Facility                                                                                                   Floating Rate Debt                    1,829,542        16.7       %   1.02  %    7.9                                                                                                       Total                                $ 10,943,282       100.0      %   4.47  %    6.1                                                                                                       (1) Net of the effect of any derivative instruments. Weighted average rates are for the quarter ended March 31, 2014.                                                                                                   Note: The Company capitalized interest of approximately $12.8 million and $8.4 million during the quarters ended March 31, 2014 and 2013, respectively.                                                                                                                                                                                                                                                                                            Debt Maturity Schedule as of March 31, 2014   (Amounts in thousands)                                                                                                                                                                                       Weighted     Weighted                                                                                     Average      Average                                                                                     Rates                        Fixed         Floating                                       on Fixed     Rates on   Year                 Rate (1)      Rate (1)           Total            % of       Rate Debt    Total                                                                          Total      (1)          Debt (1)                                                                                                     2014                 $ 509,160     $ 48,883           $ 558,043        5.1   %    5.25   %     5.02  %   2015                   420,448       750,000      (2)   1,170,448      10.7  %    6.28   %     3.11  %   2016                   1,193,250     —                  1,193,250      10.9  %    5.34   %     5.34  %   2017                   1,346,734     456                1,347,190      12.3  %    6.16   %     6.16  %   2018                   84,359        395,659      (3)   480,018        4.4   %    5.61   %     1.75  %   2019                   806,644       20,766             827,410        7.6   %    5.48   %     5.35  %   2020                   1,678,601     809                1,679,410      15.3  %    5.49   %     5.49  %   2021                   1,195,242     856                1,196,098      10.9  %    4.63   %     4.64  %   2022                   228,933       905                229,838        2.1   %    3.17   %     3.18  %   2023                   1,303,079     956                1,304,035      11.9  %    3.75   %     3.75  %   2024+                  297,925       674,988            972,913        8.9   %    6.25   %     2.23  %   Premium/(Discount)    49,365       (64,736    )      (15,371    )   (0.1  %)   N/A         N/A                                                                                                        Total                $ 9,113,740   $ 1,829,542       $ 10,943,282    100.0 %    5.20   %     4.46  %                                                                                                     (1) Net of the effect of any derivative instruments. Weighted average rates are as of March 31, 2014.                                                                                                     (2) Includes the Company's $750.0 million unsecured term loan facility that matures on January 11, 2015   and is subject to a one-year extension option exercisable by the Company.                                                                                                     (3) Includes $298.0 million outstanding on the Company's unsecured revolving credit facility. As of   March 31, 2014, there was approximately $2.17 billion available on this facility.   Equity Residential Unsecured Debt Summary as of March 31, 2014 (Amounts in thousands)                                                                                                                                                                                                   Unamortized               Coupon        Due                 Face          Premium/      Net               Rate          Date                Amount        (Discount)    Balance                                                                                Fixed   Rate   Notes:               5.250%        09/15/14            $ 500,000     $  (28)       $ 499,972               6.584%        04/13/15              300,000        (110)        299,890               5.125%        03/15/16              500,000        (103)        499,897               5.375%        08/01/16              400,000        (433)        399,567               5.750%        06/15/17              650,000        (1,653)      648,347               7.125%        10/15/17              150,000        (230)        149,770               4.750%        07/15/20              600,000        (2,861)      597,139               4.625%        12/15/21              1,000,000      (2,921)      997,079               3.000%        04/15/23              500,000        (4,005)      495,995               7.570%        08/15/26             140,000       —           140,000                                                                                                                               4,740,000     (12,344)    4,727,656   Floating   Rate   Notes:   Term Loan   LIBOR+1.20%   01/11/15   (1)(2)    750,000       —           750,000   Facility                                                                                                                               750,000       —           750,000                                                                                Revolving   Credit      LIBOR+1.05%   04/01/18   (1)(3)    298,000       —           298,000   Facility:                                                                                Total   Unsecured                                     $ 5,788,000   $  (12,344)   $ 5,775,656   Debt       (1)   Facilities are private. All other unsecured debt is public.              Represents the Company's $750.0 million unsecured term loan facility.       The maturity date of January 11, 2015 is subject to a one-year extension (2)   option exercisable by the Company. The interest rate on advances under       the term loan facility will generally be LIBOR plus a spread (currently       1.20%), which is dependent on the credit rating of the Company's       long-term debt.              Represents the Company's $2.5 billion unsecured revolving credit       facility maturing April 1, 2018. The interest rate on advances under the       new credit facility will generally be LIBOR plus a spread (currently (3)   1.05%) and an annual facility fee (currently 15 basis points). Both the       spread and the facility fee are dependent on the credit rating of the       Company's long-term debt. As of March 31, 2014, there was approximately       $2.17 billion available on the Company's unsecured revolving credit       facility.   Equity Residential                                                               Selected Unsecured Public Debt Covenants                                                                                                                          March 31,   December 31,                                                       2014        2013                                                                      Total Debt to Adjusted Total Assets (not to         40.3   %    40.0     %   exceed 60%)                                                                      Secured Debt to Adjusted Total Assets (not to       19.0   %    19.2     %   exceed 40%)                                                                      Consolidated Income Available for Debt Service to   Maximum Annual Service Charges   (must be at least 1.5 to 1)                         3.12        3.07                                                                      Total Unsecured Assets to Unsecured Debt            322.5  %    326.9    %   (must be at least 150%)   These selected covenants relate to ERP Operating Limited Partnership's ("ERPOP") outstanding unsecured public debt. Equity Residential is the general partner of ERPOP.   Equity Residential                                                                                          Capital Structure as of March 31, 2014 (Amounts in thousands except for share/unit and per share amounts)                                                                                                     Secured Debt                                                           $ 5,167,626    47.2%   Unsecured Debt                                                          5,775,656    52.8%                                                                                                     Total Debt                                                               10,943,282   100.0%   33.4%                                                                                                     Common Shares   (includes                                     361,148,189     96.2%   Restricted   Shares)   Units   (includes OP                                 14,375,319     3.8%   Units and LTIP   Units)                                                                                                     Total Shares                                  375,523,508     100.0%   and Units   Common Share   Price at March                              $ 57.99   31, 2014                                                                            21,776,608   99.8%   Perpetual   Preferred                                                               50,000       0.2%   Equity (see   below)                                                                                                     Total Equity                                                             21,826,608   100.0%   66.6%                                                                                                     Total Market                                                           $ 32,769,890            100.0%   Capitalization                                                                                                                                                                                                                                                                                        Perpetual Preferred Equity as of March 31, 2014 (Amounts in thousands except for share and per share amounts)                                                                                                                                                                 Annual     Annual                    Redemption   Outstanding   Liquidation     Dividend   Dividend   Series           Date         Shares        Value           Per        Amount                                                               Share                                                                                                     Preferred   Shares:   8.29% Series K   12/10/26     1,000,000     $ 50,000        $ 4.145    $ 4,145                                                                                                     Total   Perpetual                     1,000,000     $ 50,000                   $ 4,145   Preferred   Equity   Equity Residential Common Share and Unit Weighted Average Amounts Outstanding                                                                                                                       Q1 2014       Q1 2013                                                                     Weighted Average Amounts Outstanding for Net Income Purposes: Common Shares - basic                                360,470,366   337,532,330 Shares issuable from assumed conversion/vesting of (1): - OP Units                                           13,730,577    — - long-term compensation shares/units                2,183,239     —                                                                     Total Common Shares and Units - diluted (1)          376,384,182   337,532,330                                                                     Weighted Average Amounts Outstanding for FFO and Normalized  FFO Purposes: Common Shares - basic                                360,470,366   337,532,330 OP Units - basic                                     13,730,577    13,722,414                                                                     Total Common Shares and OP Units - basic             374,200,943   351,254,744 Shares issuable from assumed conversion/vesting of: - long-term compensation shares/units                2,183,239     2,400,834                                                                     Total Common Shares and Units - diluted              376,384,182   353,655,578                                                                     Period Ending Amounts Outstanding: Common Shares (includes Restricted Shares)           361,148,189   360,063,675 Units (includes OP Units and LTIP Units)             14,375,319    14,226,725                                                                     Total Shares and Units                               375,523,508   374,290,400             Potential common shares issuable from the assumed conversion of OP Units       and the exercise/vesting of long-term compensation shares/units are (1)   automatically anti-dilutive and therefore excluded from the diluted       earnings per share calculation as the Company had a loss from continuing       operations during the quarter ended March 31, 2013.   Equity Residential Partially Owned Entities as of March 31, 2014 (Amounts in thousands except for project and apartment unit amounts)                                                                                                                                      Consolidated                                           Unconsolidated                        Development Projects                                   Development Projects                        Held for                                               Held for                                           and/or        Completed,                               and/or        Completed,                        Under         Not                                      Under         Not                        Development   Stabilized   Operating     Total         Development   Stabilized    Operating    Total                        (4)           (5)                                      (4)           (5)                                                                                                                         Total projects (1)       —             1        19          20           —          3           1          4                                                                                                                                Total apartment          —             268      3,752       4,020        —          1,333       336        1,669    units (1)                                                                                                                         Operating information for the quarter ended 3/31/14 (at 100%): Operating revenue      $  —          $    468     $ 21,308      $ 21,776      $  —          $ 4,528       $ 1,353      $ 5,881 Operating expenses       77            204      6,453       6,734        44         1,917       559        2,520    Net operating (loss)      (77   )         264       14,855        15,042         (44    )     2,611         794          3,361 income Depreciation              —               —         5,363         5,363          —            2,782         447          3,229 General and              (9    )        116      12          119          —          12          43         55       administrative/other Operating (loss)          (68   )         148       9,480         9,560          (44    )     (183    )     304          77 income Interest and other        —               —         3             3              —            —             —            — income Other expenses            (42   )         —         (7      )     (49     )      —            —             —            — Interest: Expense incurred,         —               —         (3,887  )     (3,887  )      —            (1,992  )     (279   )     (2,271  ) net Amortization of deferred financing       —             —        (88     )    (88     )     —          (3      )    —          (3      ) costs                                                                                                                         (Loss) income before income and other taxes and (loss) from investments in unconsolidated            (110  )         148       5,501         5,539          (44    )     (2,178  )     25           (2,197  ) entities Income and other tax      —               —         (36     )     (36     )      —            —             —            — (expense) benefit (Loss) from investments in            —               —         (419    )     (419    )      —            —             —            — unconsolidated entities                                                                                                                  Net (loss) income      $  (110  )    $    148     $ 5,046      $ 5,084      $  (44    )   $ (2,178  )   $ 25        $ (2,197  )                                                                                                                         Debt - Secured (2): EQR Ownership (3)      $  —          $    —       $ 281,974     $ 281,974     $  808        $ 56,716      $ 6,082      $ 63,606 Noncontrolling           —             —        78,243      78,243       15,346     119,516     24,328     159,190  Ownership                                                                                                                         Total (at 100%)        $  —         $    —       $ 360,217    $ 360,217    $  16,154    $ 176,232    $ 30,410    $ 222,796                                                                                                                          (1)              Project and apartment unit counts exclude all uncompleted development projects until those projects are                  substantially completed.                                                                                                                         (2)              All debt is non-recourse to the Company with the exception of 50% of the current $16.2 million outstanding debt                  balance on one unconsolidated development project.                                                                                                                         (3)              Represents the Company's current equity ownership interest.                                                                                                                         (4)              See Projects Under Development - Partially Owned on page 19 for consolidated projects and Projects Under                  Development - Unconsolidated on page 20 for further information.                                                                                                                                          Projects included here are substantially complete. However, they may still require additional exterior and (5)              interior work for all units to be available for leasing. See Projects Completed, Not Stabilized - Partially Owned                  on page 19 for consolidated projects and Projects Completed, Not Stabilized - Unconsolidated on page 20 for                  further information.                                                                                                                                          The above table excludes the Company's interests in unconsolidated joint ventures entered into with AvalonBay                  ("AVB") in connection with the Archstone transaction. These ventures own certain non-core Archstone assets that Note:            are held for sale and succeeded to certain residual Archstone liabilities, such as liability for various                  employment-related matters as well as responsibility for tax protection arrangements and third-party preferred                  interests in former Archstone subsidiaries. The preferred interests have an aggregate liquidation value of $79.3                  million at March 31, 2014. The ventures are owned 60% by the Company and 40% by AVB.   Equity Residential Consolidated Development and Lease-Up Projects as of March 31, 2014 (Amounts in thousands except for project and apartment unit amounts)                                                                                                                                                                                                                Total                                                                        Book                                No. of      Total         Total         Value Not                                                       Estimated    Estimated                                Apartment   Capital       Book Value    Placed in   Total       Percentage    Percentage   Percentage   Completion   Stabilization Projects       Location        Units       Cost (1)      to Date       Service     Debt        Completed     Leased       Occupied     Date         Date                                                                                                                                                      Projects Under Development - Wholly Owned: Residences at Westgate II (formerly   Pasadena, CA    88          $ 54,037      $ 33,514      $ 33,514    $ —           44%             —        —            Q3 2014      Q1 2015 Westgate III) Residences at Westgate    Pasadena, CA    252           125,293       108,583       108,583     —           81%             9%       6%           Q3 2014      Q2 2015 I (formerly Westgate II) 170 Amsterdam      New York, NY    236           110,892       58,457        58,457      —           50%             —        —            Q1 2015      Q1 2016 (2) Azure (at      San             273           189,090       80,257        80,257      —           35%             —        —            Q3 2015      Q4 2016 Mission Bay)   Francisco, CA West Seattle   Seattle, WA     206           67,112        20,745        20,745      —           8%              —        —            Q4 2015      Q3 2016 Tallman        Seattle, WA     303           84,277        29,241        29,241      —           14%             —        —            Q4 2015      Q2 2017 Village at     Los Angeles, Howard         CA              545           193,231       56,006        56,006      —           2%              —        —            Q2 2016      Q2 2017 Hughes Millikan       Irvine, CA      344           102,331       17,490        17,490      —           1%              —        —            Q2 2016      Q3 2017 Potrero        San             453           224,474       46,094        46,094      —           1%              —        —            Q2 2016      Q3 2017                Francisco, CA Tasman         San Jose, CA    554           214,923       70,287        70,287      —           19%             —        —            Q2 2016      Q2 2018 Rincon Hill    San             348          287,454      54,885       54,885     —           1%              —        —            Q3 2016      Q1 2018                Francisco, CA Projects Under Development                    3,602         1,653,114     575,559       575,559     — - Wholly Owned                                                                                                                                                      Projects Under Development - Partially Owned: 400 Park Avenue South   New York, NY    269          251,961      186,731      186,731    —           70%             —        —            Q2 2015      Q1 2016 (3) Projects Under Development                    269           251,961       186,731       186,731     — - Partially Owned                                                                                 Projects Under                          3,871        1,905,075    762,290      762,290    — Development                                                                                                                                                      Completed Not Stabilized - Wholly Owned (4): Gaithersburg   Gaithersburg,   389           93,000        92,044        —           89,269                      96%      95%          Completed    Q2 2014 Station (5)    MD Breakwater at Marina      Marina Del      224           87,949        87,595        —           27,000                      91%      89%          Completed    Q3 2014 Del Rey (2)    Rey, CA (6) Oasis at       Delray Beach, Delray Beach   FL              128           22,239        21,960        —           —                           77%      70%          Completed    Q3 2014 II Reserve at     Mill Creek, Town Center    WA              95            21,330        20,874        —           —                           39%      26%          Completed    Q4 2014 III 1111 Belle Pre            Alexandria,     360           114,072       108,438       —           —                           48%      39%          Completed    Q2 2015 (formerly      VA The Madison) Jia (formerly      Los Angeles,    280           92,920        88,403        —           —                           17%      13%          Completed    Q3 2015 Chinatown      CA Gateway) Urbana (formerly Market         Seattle, WA     287          90,024       82,807       —          —                           18%      13%          Completed    Q3 2015 Street Landing) Projects Completed Not                            1,763         521,534       502,121       —           116,269 Stabilized - Wholly Owned                                                                                                                                                      Completed Not Stabilized - Partially Owned (4): Park Aire (formerly      Wellington, Enclave at     FL              268          50,000       48,319       —          —                           56%      51%          Completed    Q1 2015 Wellington) (7) Projects Completed Not                            268           50,000        48,319        —           — Stabilized - Partially Owned                                                                                 Projects Completed                      2,031        571,534      550,440      —          116,269 Not Stabilized                                                                                                                                                      Total Consolidated                   5,902       $ 2,476,609   $ 1,312,730   $ 762,290   $ 116,269 Projects                                                                                                                                                      Land Held for                            N/A          N/A         $ 295,357     $ 295,357   $ — Development                                                                                                                                                                                                                                                     Total         Q1 2014                                                                                                Capital NOI CONTRIBUTION FROM CONSOLIDATED DEVELOPMENT PROJECTS                                        Cost (1)      NOI Projects Under Development                                                                     $ 1,905,075   $   (60) Completed Not Stabilized                                                                         571,534         2,109 Completed and Stabilized During the Quarter                                                     —              — Total Consolidated Development NOI Contribution                                                $ 2,476,609   $   2,049                                                                                                                                                      (1)         Total capital cost represents estimated cost for projects under development and/or developed and all capitalized costs incurred to date plus any             estimates of costs remaining to be funded for all projects, all in accordance with GAAP.              (2)         170 Amsterdam and Breakwater at Marina Del Rey – The land under these developments are subject to long term ground leases.                          400 Park Avenue South – The Company is jointly developing with Toll Brothers (NYSE: TOL) a project at 400 Park Avenue South in New York City with the (3)         Company's rental portion on floors 2-22 and Toll's for sale portion on floors 23-40. The total capital cost and total book value to date represent             only the Company's portion of the project. Toll Brothers has funded $102.9 million for their allocated share of the project.              (4)         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.              (5)         Gaithersburg Station – This project has a non-recourse loan with a current outstanding balance of $89.3 million, bears interest at 5.24% and matures             April 1, 2053.              (6)         Breakwater at Marina Del Rey – The Company has substantially completed renovations of this property. The non-recourse loan has a current outstanding             balance of $27.0 million, bears interest at LIBOR plus 1.75% and matures September 1, 2014.              (7)         Park Aire – The Company has a 95.0% ownership interest in this project.   Equity Residential Unconsolidated Development and Lease-Up Projects as of March 31, 2014 (Amounts in thousands except for project and apartment unit amounts)                                                                                                                                                                                                                            Total                                                                                Book                                              No. of      Total      Total      Value                                                        Estimated    Estimated                                                                                Not                                 Percentage   Apartment   Capital    Book       Placed     Total      Percentage   Percentage   Percentage   Completion   Stabilization                                                                     Value      in Projects          Location      Ownership    Units       Cost (1)   to Date    Service    Debt       Completed    Leased       Occupied     Date         Date                                                                                                                                                           Projects Under Development - Unconsolidated: 1333 Powell                                                                                 *Story (formerly         Emeryville,   5.0%         176         $ 75,000   $ 49,332   $ 49,332   $ too Parkside at       CA                                                                        large* Emeryville) (2)  [TRUNCATED]