Company Announcements

Equity Residential Reports First Quarter 2021 Results

Full Year Guidance Ranges Raised as Broad-Based Recovery Continues

CHICAGO--(BUSINESS WIRE)--Apr. 27, 2021-- Equity Residential (NYSE: EQR) today reported results for the quarter ended March 31, 2021 and has posted a Q1 2021 Management Presentation to its website as referenced below.

First Quarter 2021 Results

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended March 31,

 

 

 

 

 

2021

 

 

2020

 

 

$ Change

 

 

% Change

 

 

 

Earnings Per Share (EPS)

 

$

0.15

 

 

$

0.83

 

 

$

(0.68

)

 

 

(81.9

%)

 

 

Funds from Operations (FFO) per share

 

$

0.67

 

 

$

0.86

 

 

$

(0.19

)

 

 

(22.1

%)

 

 

Normalized FFO per share

 

$

0.68

 

 

$

0.87

 

 

$

(0.19

)

 

 

(21.8

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“While the first quarter’s results reflect the significant impact of the pandemic on our business, we continue to see substantial signs of improvement as cities begin to reopen and affluent renters return. We are producing occupancy and pricing trends better than our original expectations and are therefore pleased to raise our full year same store revenue guidance range by 100 basis points to -6.0% to -8.0%,” said Mark J. Parrell, Equity Residential’s President and CEO. “As we head into the seasonally highest demand period of the year, we see considerable positive momentum in our operations and we expect to further reduce concessions and increase rental rates in light of the strong demand we see across our markets.”

Highlights

  • The Company has seen a 1.6% improvement in same store Physical Occupancy since the end of the fourth quarter 2020 (94.4% on December 31, 2020 to 96.0% on April 22, 2021).
  • Pricing Trends continue to improve across all markets with an approximately 14% sequential improvement portfolio-wide from December 2020 through April 2021. See the Management Presentation for details.
  • The Company collected approximately 97% of its expected Residential revenues in the first quarter of 2021.
  • The Company expanded its efforts to improve access to affordable housing with a $5.0 million commitment to a fund dedicated to preserving affordable housing.

Results Per Share

The change in EPS for the quarter ended March 31, 2021 compared to the same period of 2020 is due primarily to lower property sale gains in the first quarter of 2021, the various adjustment items listed on page 23 of this release and the items described below.

The per share change in FFO for the quarter ended March 31, 2021 compared to the same period of 2020, is due primarily to the various adjustment items listed on page 23 of this release and the items described below.

The per share change in Normalized FFO is due primarily to:

 

 

Positive/(Negative) Impact

 

 

 

First Quarter 2021 vs.
First Quarter 2020

 

Residential same store Net Operating Income (NOI)

 

$

(0.20

)

2020 transaction activity impact on NOI, net

 

(0.03

)

Interest expense, net

 

 

0.05

 

Other items

 

 

(0.01

)

Net

 

$

(0.19

)

The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 25 through 30 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 6, 27 and 28 of this release.

Same Store Results

The Company has provided a breakout of Residential and Non-Residential same store results on page 9 of this release with definitions that can be found on page 29 of this release. Non-Residential operations account for approximately 3.8% of total revenues for the quarter ended March 31, 2021. The table below reflects same store Residential only results for the first quarter 2021 to first quarter 2020 comparison, which includes 77,060 apartment units, as well as for the first quarter 2021 to fourth quarter 2020 comparison, which includes 77,281 apartment units. The Company’s Physical Occupancy was 95.0% for the first quarter of 2021 compared to 94.2% for the fourth quarter of 2020 and 96.4% for the first quarter of 2020.

 

 

First Quarter 2021 vs.
First Quarter 2020

 

 

First Quarter 2021 vs.
Fourth Quarter 2020

 

Revenues

 

(10.6%)

 

 

(2.3%)

 

Expenses

 

3.9%

 

 

5.6%

 

NOI

 

(17.1%)

 

 

(6.2%)

 

The following table reflects the detail of the change in Same Store Residential Revenues, which is presented on a GAAP basis showing Leasing Concessions on a straight-line basis. See page 10 for detail and reconciliations of Same Store Residential Revenues on a GAAP basis to Same Store Residential Revenues with Leasing Concessions on a cash basis.

 

First Quarter 2021 vs.
First Quarter 2020

 

 

First Quarter 2021 vs.
Fourth Quarter 2020

 

 

% Change

 

 

% Change

 

Same Store Residential Revenues-

comparable period

 

 

 

 

 

 

 

Lease rates

 

(6.6

%)

 

 

(2.3

%)

Leasing Concessions (1)

 

(1.6

%)

 

 

(0.6

%)

Vacancy loss

 

(1.0

%)

 

 

1.1

%

Bad Debt, Net (2)

 

(1.6

%)

 

 

(0.1

%)

Other (3)

 

0.2

%

 

 

(0.4

%)

Same Store Residential Revenues-

current period

 

(10.6

%)

 

 

(2.3

%)

(1)

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

(2)

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

(3)

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

Residential Same Store Operating Statistics

The following table includes select operating metrics for Residential Same Store Properties:

 

 

Q4 2020

 

 

Q1 2021

 

 

April 2021 (1)

 

Physical Occupancy (2)

 

94.4%

 

 

95.6%

 

 

96.0%

 

Percentage of Residents Renewing by quarter/month

51.0%

 

 

53.0%

 

 

56.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Lease Change

 

(20.5%)

 

 

(17.7%)

 

 

(11.4%)

 

Renewal Rate Achieved

 

(3.4%)

 

 

(5.1%)

 

 

(2.1%)

 

Blended Rate

 

(13.0%)

 

 

(12.1%)

 

 

(7.2%)

 

(1)

April 2021 results are preliminary.

(2)

Physical Occupancy is as of month-end December for Q4 2020, month-end March for Q1 2021 and as of April 22 for April 2021.

Investment Activity

The Company did not acquire or sell any assets during the first quarter of 2021.

Second Quarter 2021 Guidance

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

 

 

Q2 2021

Guidance

EPS

 

$0.66 to $0.70

FFO per share

 

$0.66 to $0.70

Normalized FFO per share

 

$0.67 to $0.71

The difference between the first quarter 2021 actual EPS of $0.15 and the second quarter of 2021 EPS guidance midpoint of $0.68 is due primarily to higher expected property sale gains and lower expected corporate overhead.

The difference between the first quarter 2021 actual FFO of $0.67 per share and the second quarter of 2021 FFO guidance midpoint of $0.68 per share is due primarily to lower expected corporate overhead.

The difference between the first quarter 2021 actual Normalized FFO of $0.68 per share and the second quarter of 2021 Normalized FFO guidance midpoint of $0.69 per share is due primarily to lower expected corporate overhead.

Full Year 2021 Guidance

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

 

 

Revised

 

Previous

Same Store (includes Residential and Non-Residential):

Physical Occupancy

 

95.0% to 96.0%

 

94.8% to 95.8%

Revenue change

 

(8.0%) to (6.0%)

 

(9.0%) to (7.0%)

Expense change

 

3.0% to 4.0%

 

3.0% to 4.0%

NOI change

 

(13.0%) to (11.0%)

 

(15.0%) to (12.0%)

 

 

 

 

 

EPS

 

$2.57 to $2.67

 

$2.55 to $2.75

FFO per share

 

$2.67 to $2.77

 

$2.58 to $2.78

Normalized FFO per share

 

$2.70 to $2.80

 

$2.60 to $2.80

The change in the full year 2021 EPS guidance range is due primarily to lower expected property sale gains and higher expected same store NOI.

The change in the full year 2021 FFO per share guidance range is due primarily to higher expected same store NOI.

The change in the full year 2021 Normalized FFO per share guidance range is due primarily to higher expected same store NOI.

About Equity Residential

Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract high quality long-term renters. Equity Residential owns or has investments in 304 properties consisting of 77,889 apartment units, located in Boston, New York, Washington, D.C., Seattle, San Francisco, Southern California and Denver. For more information on Equity Residential, please visit our website at www.equityapartments.com.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential’s management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, competition and government regulation. In addition, these forward-looking statements are subject to risks related to the COVID-19 pandemic, many of which are unknown, including the duration and severity of the pandemic, the extent of the adverse health impact on the general population and on our residents, customers and employees in particular, its impact on the employment rate and the economy and the corresponding impact on our residents’ and tenants’ ability to pay their rent on time or at all, the extent and impact of governmental responses, the rollout and effectiveness of vaccines and the impact of operational changes we have implemented and may implement in response to the pandemic. Other risks and uncertainties are described under the heading “Risk Factors” in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityapartments.com. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

A live web cast of the Company’s conference call discussing these results will take place tomorrow, Wednesday, April 28, 2021 at 10:00 a.m. CT. In connection with the conference call, the Company is also providing a Management Presentation on its website. Please visit the Investor section of the Company’s website at www.equityapartments.com for the web cast link and the presentation.

Equity Residential

Consolidated Statements of Operations

(Amounts in thousands except per share data)

(Unaudited)

 

 

 

Quarter Ended March 31,

 

 

 

2021

 

 

2020

 

REVENUES

 

 

 

 

 

 

 

 

Rental income

 

$

597,602

 

 

$

682,305

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

Property and maintenance

 

 

117,054

 

 

 

115,816

 

Real estate taxes and insurance

 

 

103,470

 

 

 

97,732

 

Property management

 

 

26,130

 

 

 

27,709

 

General and administrative

 

 

15,383

 

 

 

14,518

 

Depreciation

 

 

199,962

 

 

 

212,422

 

Total expenses

 

 

461,999

 

 

 

468,197

 

 

 

 

 

 

 

 

 

 

Net gain (loss) on sales of real estate properties

 

 

(43

)

 

 

207,977

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

135,560

 

 

 

422,085

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

 

216

 

 

 

1,960

 

Other expenses

 

 

(4,110

)

 

 

(2,533

)

Interest:

 

 

 

 

 

 

 

 

Expense incurred, net

 

 

(67,358

)

 

 

(85,590

)

Amortization of deferred financing costs

 

 

(2,185

)

 

 

(2,041

)

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

investments in unconsolidated entities and net gain (loss)

on sales of land parcels

 

 

62,123

 

 

 

333,881

 

Income and other tax (expense) benefit

 

 

(153

)

 

 

(53

)

Income (loss) from investments in unconsolidated entities

 

 

(1,611

)

 

 

(1,157

)

Net gain (loss) on sales of land parcels

 

 

5

 

 

 

 

Net income

 

 

60,364

 

 

 

332,671

 

Net (income) loss attributable to Noncontrolling Interests:

 

 

 

 

 

 

 

 

Operating Partnership

 

 

(2,143

)

 

 

(11,535

)

Partially Owned Properties

 

 

(682

)

 

 

(12,530

)

Net income attributable to controlling interests

 

 

57,539

 

 

 

308,606

 

Preferred distributions

 

 

(773

)

 

 

(773

)

Net income available to Common Shares

 

$

56,766

 

 

$

307,833

 

 

 

 

 

 

 

 

 

 

Earnings per share – basic:

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

0.15

 

 

$

0.83

 

Weighted average Common Shares outstanding

 

 

372,280

 

 

 

371,582

 

 

 

 

 

 

 

 

 

 

Earnings per share – diluted:

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

0.15

 

 

$

0.83

 

Weighted average Common Shares outstanding

 

 

386,916

 

 

 

386,949

 

 

 

 

 

 

 

 

 

 

Distributions declared per Common Share outstanding

 

$

0.6025

 

 

$

0.6025

 

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,

 

 

 

2021

 

 

2020

 

Net income

 

$

60,364

 

 

$

332,671

 

Net (income) loss attributable to Noncontrolling Interests – Partially

Owned Properties

 

 

(682

)

 

 

(12,530

)

Preferred distributions

 

 

(773

)

 

 

(773

)

Net income available to Common Shares and Units

 

 

58,909

 

 

 

319,368

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

Depreciation

 

 

199,962

 

 

 

212,422

 

Depreciation – Non-real estate additions

 

 

(1,100

)

 

 

(1,287

)

Depreciation – Partially Owned Properties

 

 

(828

)

 

 

(856

)

Depreciation – Unconsolidated Properties

 

 

617

 

 

 

613

 

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

assets

 

 

(4

)

 

 

 

Net (gain) loss on sales of real estate properties

 

 

43

 

 

 

(207,977

)

Noncontrolling Interests share of gain (loss) on sales

of real estate properties

 

 

 

 

 

11,655

 

FFO available to Common Shares and Units

 

 

257,599

 

 

 

333,938

 

 

 

 

 

 

 

 

 

 

Adjustments (see note for additional detail):

 

 

 

 

 

 

 

 

Impairment – non-operating assets

 

 

 

 

 

 

Write-off of pursuit costs

 

 

1,331

 

 

 

1,627

 

Debt extinguishment and preferred share redemption (gains)

losses

 

 

264

 

 

 

 

Non-operating asset (gains) losses

 

 

854

 

 

 

441

 

Other miscellaneous items

 

 

2,242

 

 

 

(918

)

Normalized FFO available to Common Shares and Units

 

$

262,290

 

 

$

335,088

 

 

 

 

 

 

 

 

 

 

FFO

 

$

258,372

 

 

$

334,711

 

Preferred distributions

 

 

(773

)

 

 

(773

)

FFO available to Common Shares and Units

 

$

257,599

 

 

$

333,938

 

FFO per share and Unit – basic

 

$

0.67

 

 

$

0.87

 

FFO per share and Unit – diluted

 

$

0.67

 

 

$

0.86

 

 

 

 

 

 

 

 

 

 

Normalized FFO

 

$

263,063

 

 

$

335,861

 

Preferred distributions

 

 

(773

)

 

 

(773

)

Normalized FFO available to Common Shares and Units

 

$

262,290

 

 

$

335,088

 

Normalized FFO per share and Unit – basic

 

$

0.68

 

 

$

0.87

 

Normalized FFO per share and Unit – diluted

 

$

0.68

 

 

$

0.87

 

 

 

 

 

 

 

 

 

 

Weighted average Common Shares and Units outstanding – basic

 

 

385,330

 

 

 

384,586

 

Weighted average Common Shares and Units outstanding – diluted

 

 

386,916

 

 

 

386,949

 

Note: See Adjustments from FFO to Normalized FFO for additional detail regarding the adjustments from FFO to Normalized FFO. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.

Equity Residential

Consolidated Balance Sheets

(Amounts in thousands except for share amounts)

(Unaudited)

 

 

March 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

ASSETS

 

 

 

 

 

 

 

 

Land

 

$

5,785,367

 

 

$

5,785,367

 

Depreciable property

 

 

20,952,067

 

 

 

20,920,654

 

Projects under development

 

 

476,010

 

 

 

411,134

 

Land held for development

 

 

88,360

 

 

 

86,170

 

Investment in real estate

 

 

27,301,804

 

 

 

27,203,325

 

Accumulated depreciation

 

 

(8,059,619

)

 

 

(7,859,657

)

Investment in real estate, net

 

 

19,242,185

 

 

 

19,343,668

 

Investments in unconsolidated entities

 

 

53,274

 

 

 

52,782

 

Cash and cash equivalents

 

 

35,453

 

 

 

42,591

 

Restricted deposits

 

 

62,383

 

 

 

57,137

 

Right-of-use assets

 

 

484,999

 

 

 

499,287

 

Other assets

 

 

290,721

 

 

 

291,426

 

Total assets

 

$

20,169,015

 

 

$

20,286,891

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Mortgage notes payable, net

 

$

2,270,700

 

 

$

2,293,890

 

Notes, net

 

 

5,337,103

 

 

 

5,335,536

 

Line of credit and commercial paper

 

 

429,753

 

 

 

414,830

 

Accounts payable and accrued expenses

 

 

168,028

 

 

 

107,366

 

Accrued interest payable

 

 

55,489

 

 

 

65,896

 

Lease liabilities

 

 

316,838

 

 

 

329,130

 

Other liabilities

 

 

335,664

 

 

 

345,064

 

Security deposits

 

 

60,939

 

 

 

60,480

 

Distributions payable

 

 

232,737

 

 

 

232,262

 

Total liabilities

 

 

9,207,251

 

 

 

9,184,454

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable Noncontrolling Interests – Operating Partnership

 

 

409,523

 

 

 

338,951

 

Equity:

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

Preferred Shares of beneficial interest, $0.01 par value;

100,000,000 shares authorized; 745,600 shares issued and

outstanding as of March 31, 2021 and December 31, 2020

 

 

37,280

 

 

 

37,280

 

Common Shares of beneficial interest, $0.01 par value;

1,000,000,000 shares authorized; 372,917,413 shares issued

and outstanding as of March 31, 2021 and 372,302,000

shares issued and outstanding as of December 31, 2020

 

 

3,729

 

 

 

3,723

 

Paid in capital

 

 

9,083,346

 

 

 

9,128,599

 

Retained earnings

 

 

1,231,808

 

 

 

1,399,715

 

Accumulated other comprehensive income (loss)

 

 

(41,363

)

 

 

(43,666

)

Total shareholders’ equity

 

 

10,314,800

 

 

 

10,525,651

 

Noncontrolling Interests:

 

 

 

 

 

 

 

 

Operating Partnership

 

 

234,969

 

 

 

233,162

 

Partially Owned Properties

 

 

2,472

 

 

 

4,673

 

Total Noncontrolling Interests

 

 

237,441

 

 

 

237,835

 

Total equity

 

 

10,552,241

 

 

 

10,763,486

 

Total liabilities and equity

 

$

20,169,015

 

 

$

20,286,891

 

Equity Residential

Portfolio Summary

As of March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

% of

 

 

 

 

 

 

 

 

 

 

 

Stabilized

 

 

Average

 

 

 

 

 

 

Apartment

 

 

Budgeted

 

 

Rental

 

Markets/Metro Areas

 

Properties

 

 

Units

 

 

NOI

 

 

Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

72

 

 

 

16,603

 

 

 

21.5

%

 

$

2,424

 

Orange County

 

 

13

 

 

 

4,028

 

 

 

5.4

%

 

 

2,205

 

San Diego

 

 

11

 

 

 

2,706

 

 

 

3.8

%

 

 

2,376

 

Subtotal – Southern California

 

 

96

 

 

 

23,337

 

 

 

30.7

%

 

 

2,380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

48

 

 

 

12,707

 

 

 

18.3

%

 

 

2,903

 

Washington DC

 

 

47

 

 

 

14,731

 

 

 

17.2

%

 

 

2,325

 

Seattle

 

 

46

 

 

 

9,454

 

 

 

11.4

%

 

 

2,242

 

New York

 

 

37

 

 

 

9,606

 

 

 

11.3

%

 

 

3,464

 

Boston

 

 

25

 

 

 

6,430

 

 

 

9.4

%

 

 

2,853

 

Denver

 

 

5

 

 

 

1,624

 

 

 

1.7

%

 

 

1,984

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

304

 

 

 

77,889

 

 

 

100.0

%

 

$

2,597

 

 

 

 

Properties

 

 

Apartment Units

 

 

 

 

 

 

 

 

 

 

Wholly Owned Properties

 

 

287

 

 

 

74,328

 

Master-Leased Properties – Consolidated

 

 

1

 

 

 

162

 

Partially Owned Properties – Consolidated

 

 

16

 

 

 

3,399

 

 

 

 

 

 

 

 

 

 

 

 

 

304

 

 

 

77,889

 

Note: Projects under development are not included in the Portfolio Summary until construction has been completed.

Note: The Company did not acquire or sell any assets during the first quarter of 2021.

Equity Residential

First Quarter 2021 vs. First Quarter 2020

Same Store Results/Statistics Including 77,060 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

 

First Quarter 2021

 

 

First Quarter 2020

 

 

Residential

 

 

%
Change

 

 

Non-
Residential

 

 

%
Change

 

 

Total

 

 

%
Change

 

 

 

Residential

 

 

Non-
Residential

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

570,927

 

(1)

(10.6%)

 

 

$

21,861

 

(2)

(6.3%)

 

 

$

592,788

 

 

(10.5%)

 

 

Revenues

$

638,683

 

 

$

23,338

 

 

$

662,021

 

Expenses

$

205,959

 

 

3.9%

 

 

$

6,093

 

 

3.4%

 

 

$

212,052

 

 

3.8%

 

 

Expenses

$

198,306

 

 

$

5,895

 

 

$

204,201

 

NOI

$

364,968

 

 

(17.1%)

 

 

$

15,768

 

 

(9.6%)

 

 

$

380,736

 

 

(16.8%)

 

 

NOI

$

440,377

 

 

$

17,443

 

 

$

457,820

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

$

2,601

 

 

(9.3%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

$

2,867

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

95.0

%

 

(1.4%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

96.4

%

 

 

 

 

 

 

 

 

Turnover

 

9.9

%

 

0.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Turnover

 

9.7

%

 

 

 

 

 

 

 

 

First Quarter 2021 vs. Fourth Quarter 2020

Same Store Results/Statistics Including 77,281 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

 

First Quarter 2021

 

 

Fourth Quarter 2020

 

 

Residential

 

 

%
Change

 

 

Non-
Residential

 

 

%
Change

 

 

Total

 

 

% Change

 

 

 

Residential

 

 

Non-
Residential

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

572,443

 

(1)

(2.3%)

 

 

$

21,861

 

(2)

9.4%

 

 

$

594,304

 

 

(1.9%)

 

 

Revenues

$

585,699

 

 

$

19,982

 

 

$

605,681

 

Expenses

$

206,342

 

 

5.6%

 

 

$

6,095

 

 

9.2%

 

 

$

212,437

 

 

5.7%

 

 

Expenses

$

195,347

 

 

$

5,583

 

 

$

200,930

 

NOI

$

366,101

 

 

(6.2%)

 

 

$

15,766

 

 

9.5%

 

 

$

381,867

 

 

(5.7%)

 

 

NOI

$

390,352

 

 

$

14,399

 

 

$

404,751

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

$

2,600

 

 

(3.1%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

$

2,683

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

95.0

%

 

0.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

94.2

%

 

 

 

 

 

 

 

 

Turnover

 

10.0

%

 

(3.4%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Turnover

 

13.4

%

 

 

 

 

 

 

 

 

(1)

See page 10 for Same Store Residential Revenues with Leasing Concessions reflected on a cash basis. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.

 

 

(2)

Changes in same store Non-Residential revenues for the periods presented are driven by the following:

 

• First Quarter 2021 vs. First Quarter 2020 – Primarily deferral/abatement of rents, higher bad debt and lower parking income.

 

• First Quarter 2021 vs. Fourth Quarter 2020 – Primarily higher receipts from retail tenants, lower bad debt and higher parking income.

Equity Residential

Same Store Residential Revenues – GAAP to Cash Basis (1)

$ in thousands

 

 

First Quarter 2021 vs. First Quarter 2020

 

 

First Quarter 2021 vs. Fourth Quarter 2020

 

 

77,060 Same Store Apartment Units

 

 

77,281 Same Store Apartment Units

 

 

Q1 2021

 

 

Q1 2020

 

 

Q1 2021

 

 

Q4 2020

 

Same Store Residential Revenues (GAAP Basis)

$

570,927

 

 

$

638,683

 

 

$

572,443

 

 

$

585,699

 

Leasing Concessions amortized

 

11,640

 

 

 

1,147

 

 

 

11,703

 

 

 

8,302

 

Leasing Concessions granted (2)

 

(16,989

)

 

 

(1,904

)

 

 

(17,038

)

 

 

(16,762

)

Same Store Residential Revenues with Leasing

Concessions on a cash basis

$

565,578

 

 

$

637,926

 

 

$

567,108

 

 

$

577,239

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% change - GAAP revenue

 

(10.6

%)

 

 

 

 

 

 

(2.3

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% change - cash revenue

 

(11.3

%)

 

 

 

 

 

 

(1.8

%)

 

 

 

 

(1)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.

 

 

(2)

Monthly Leasing Concessions granted began to decline in March 2021. Leasing Concessions granted in February, March and April (preliminary) 2021 are $6.1 million, $4.9 million and $3.6 million, respectively.

Same Store Resident/Tenant Accounts Receivable Balances

Including 77,060 Same Store Apartment Units

$ in thousands

 

 

Residential

 

 

Non-Residential

 

Balance Sheet (Other assets):

March 31, 2021

 

 

December 31, 2020

 

 

March 31, 2021

 

 

December 31, 2020

 

Resident/tenant accounts receivable balances

$

37,590

 

 

$

31,180

 

 

$

6,554

 

 

$

7,340

 

Allowance for doubtful accounts

 

(31,596

)

 

 

(23,873

)

 

 

(5,724

)

 

 

(6,527

)

Net receivable balances

$

5,994

 

(1)

$

7,307

 

 

$

830

 

 

$

813

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line receivable balances

$

25,096

 

(2)

$

19,747

 

 

$

13,392

 

 

$

13,399

 

(1)

The Company held same store Residential security deposits approximating 31.9% of the net receivable balance at March 31, 2021.

 

 

(2)

Total same store Residential Leasing Concessions granted in the first quarter of 2021 were approximately $17.0 million. The straight-line receivable balance of $25.1 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues for the remainder of 2021 and the first quarter of 2022.

 

Same Store Residential Bad Debt

Including 77,060 Same Store Apartment Units

$ in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement (Rental income):

 

Q1 2021

 

 

Q4 2020

 

 

Q1 2020

 

Bad Debt, Net

 

$

13,689

 

 

$

13,199

 

 

$

3,687

 

% of Same Store Residential Revenues

 

 

2.4

%

 

 

2.3

%

 

 

0.6

%

Equity Residential

First Quarter 2021 vs. First Quarter 2020

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Year's Quarter

 

Markets/Metro Areas

 

Apartment
Units

 

 

Q1 2021
% of
Actual
NOI

 

 

Q1 2021
Average
Rental
Rate

 

 

Q1 2021
Weighted
Average
Physical
Occupancy %

 

 

Q1 2021
Turnover

 

 

Revenues

 

 

Expenses

 

 

NOI

 

 

Average
Rental
Rate

 

 

Physical
Occupancy

 

 

Turnover

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

16,533

 

 

 

20.9

%

 

$

2,423

 

 

 

95.8

%

 

 

10.1

%

 

 

(8.1

%)

 

 

1.1

%

 

 

(12.2

%)

 

 

(7.9

%)

 

 

(0.2

%)

 

 

(1.0

%)

Orange County

 

 

4,028

 

 

 

5.3

%

 

 

2,205

 

 

 

97.0

%

 

 

7.8

%

 

 

(3.2

%)

 

 

2.7

%

 

 

(4.9

%)

 

 

(3.3

%)

 

 

0.2

%

 

 

(1.2

%)

San Diego

 

 

2,706

 

 

 

3.9

%

 

 

2,376

 

 

 

97.2

%

 

 

10.5

%

 

 

(0.2

%)

 

 

1.2

%

 

 

(0.6

%)

 

 

(0.6

%)

 

 

0.4

%

 

 

(0.8

%)

Subtotal – Southern California

 

 

23,267

 

 

 

30.1

%

 

 

2,380

 

 

 

96.2

%

 

 

9.7

%

 

 

(6.5

%)

 

 

1.3

%

 

 

(9.6

%)

 

 

(6.4

%)

 

 

(0.1

%)

 

 

(1.1

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

12,707

 

 

 

19.5

%

 

 

2,903

 

 

 

93.8

%

 

 

11.4

%

 

 

(15.7

%)

 

 

4.7

%

 

 

(22.6

%)

 

 

(13.1

%)

 

 

(2.9

%)

 

 

1.7

%

Washington DC

 

 

14,569

 

 

 

17.6

%

 

 

2,325

 

 

 

95.9

%

 

 

9.7

%

 

 

(5.5

%)

 

 

4.0

%

 

 

(9.6

%)

 

 

(5.2

%)

 

 

(0.3

%)

 

 

1.1

%

New York

 

 

9,606

 

 

 

11.0

%

 

 

3,464

 

 

 

91.4

%

 

 

8.3

%

 

 

(16.9

%)

 

 

4.4

%

 

 

(34.0

%)

 

 

(12.2

%)

 

 

(5.3

%)

 

 

1.1

%

Seattle

 

 

8,941

 

 

 

10.7

%

 

 

2,258

 

 

 

95.7

%

 

 

11.1

%

 

 

(10.3

%)

 

 

6.0

%

 

 

(16.5

%)

 

 

(9.0

%)

 

 

(1.4

%)

 

 

0.0

%

Boston

 

 

6,346

 

 

 

9.4

%

 

 

2,852

 

 

 

95.3

%

 

 

8.9

%

 

 

(10.8

%)

 

 

4.9

%

 

 

(17.2

%)

 

 

(10.3

%)

 

 

(0.5

%)

 

 

(0.2

%)

Denver

 

 

1,624

 

 

 

1.7

%

 

 

1,984

 

 

 

96.1

%

 

 

12.3

%

 

 

(2.7

%)

 

 

9.5

%

 

 

(7.7

%)

 

 

(3.4

%)

 

 

0.6

%

 

 

(2.1

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

77,060

 

 

 

100.0

%

 

$

2,601

 

 

 

95.0

%

 

 

9.9

%

 

 

(10.6

%)

(1)

 

3.9

%

 

 

(17.1

%)

 

 

(9.3

%)

 

 

(1.4

%)

 

 

0.2

%

(1)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 11.3% in the first quarter of 2021 compared to the first quarter of 2020. See page 10 for additional detail and reconciliations.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the quarter ended March 31, 2021.

Equity Residential

First Quarter 2021 vs. Fourth Quarter 2020

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Quarter

 

Markets/Metro Areas

 

Apartment
Units

 

 

Q1 2021
% of
Actual
NOI

 

 

Q1 2021
Average
Rental
Rate

 

 

Q1 2021
Weighted
Average
Physical
Occupancy %

 

 

Q1 2021
Turnover

 

 

Revenues

 

 

Expenses

 

 

NOI

 

 

Average
Rental
Rate

 

 

Physical
Occupancy

 

 

Turnover

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

16,533

 

 

 

20.8

%

 

$

2,423

 

 

 

95.8

%

 

 

10.1

%

 

 

(1.4

%)

 

 

3.5

%

 

 

(3.7

%)

 

 

(1.4

%)

 

 

0.0

%

 

 

(3.6

%)

Orange County

 

 

4,028

 

 

 

5.3

%

 

 

2,205

 

 

 

97.0

%

 

 

7.8

%

 

 

(0.6

%)

 

 

5.5

%

 

 

(2.4

%)

 

 

(0.8

%)

 

 

0.2

%

 

 

(2.9

%)

San Diego

 

 

2,706

 

 

 

3.9

%

 

 

2,376

 

 

 

97.2

%

 

 

10.5

%

 

 

0.0

%

 

 

3.3

%

 

 

(1.0

%)

 

 

0.1

%

 

 

(0.1

%)

 

 

(0.9

%)

Subtotal – Southern California

 

 

23,267

 

 

 

30.0

%

 

 

2,380

 

 

 

96.2

%

 

 

9.7

%

 

 

(1.1

%)

 

 

3.7

%

 

 

(3.1

%)

 

 

(1.1

%)

 

 

0.1

%

 

 

(3.2

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

12,707

 

 

 

19.4

%

 

 

2,903

 

 

 

93.8

%

 

 

11.4

%

 

 

(3.7

%)

 

 

6.6

%

 

 

(7.8

%)

 

 

(4.9

%)

 

 

1.1

%

 

 

(4.3

%)

Washington DC

 

 

14,569

 

 

 

17.6

%

 

 

2,325

 

 

 

95.9

%

 

 

9.7

%

 

 

(2.1

%)

 

 

6.1

%

 

 

(5.8

%)

 

 

(2.6

%)

 

 

0.5

%

 

 

(3.1

%)

New York

 

 

9,606

 

 

 

11.0

%

 

 

3,464

 

 

 

91.4

%

 

 

8.3

%

 

 

(2.4

%)

 

 

5.8

%

 

 

(11.3

%)

 

 

(4.2

%)

 

 

1.6

%

 

 

(3.5

%)

Seattle

 

 

9,078

 

 

 

10.8

%

 

 

2,255

 

 

 

95.7

%

 

 

11.1

%

 

 

(3.4

%)

 

 

5.6

%

 

 

(7.2

%)

 

 

(4.6

%)

 

 

1.2

%

 

 

(3.0

%)

Boston

 

 

6,430

 

 

 

9.5

%

 

 

2,853

 

 

 

95.3

%

 

 

8.9

%

 

 

(2.1

%)

 

 

6.8

%

 

 

(6.1

%)

 

 

(3.6

%)

 

 

1.4

%

 

 

(4.0

%)

Denver

 

 

1,624

 

 

 

1.7

%

 

 

1,984

 

 

 

96.1

%

 

 

12.3

%

 

 

0.1

%

 

 

11.6

%

 

 

(4.6

%)

 

 

(0.9

%)

 

 

1.0

%

 

 

(3.6

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

77,281

 

 

 

100.0

%

 

$

2,600

 

 

 

95.0

%

 

 

10.0

%

 

 

(2.3

%)

(1)

 

5.6

%

 

 

(6.2

%)

 

 

(3.1

%)

 

 

0.8

%

 

 

(3.4

%)

(1)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 1.8% in the first quarter of 2021 compared to the fourth quarter of 2020. See page 10 for additional detail and reconciliations.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the quarter ended March 31, 2021.

Equity Residential

Same Store Residential Net Effective Lease Pricing Statistics

For 77,060 Same Store Apartment Units

 

 

 

New Lease Change (1)

 

 

Renewal Rate Achieved (1)

 

 

Blended Rate (1)

 

Markets/Metro Areas

 

Q1 2021

 

 

Q4 2020

 

 

Q1 2021

 

 

Q4 2020

 

 

Q1 2021

 

 

Q4 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

(7.6

%)

 

 

(8.9

%)

 

 

(0.2

%)

 

 

(0.5

%)

 

 

(4.0

%)

 

 

(4.6

%)

Orange County

 

 

0.1

%

 

 

(2.8

%)

 

 

3.0

%

 

 

2.1

%

 

 

1.7

%

 

 

0.0

%

San Diego

 

 

2.1

%

 

 

(0.1

%)

 

 

3.9

%

 

 

2.5

%

 

 

3.1

%

 

 

1.4

%

Subtotal – Southern California

 

 

(5.5

%)

 

 

(7.3

%)

 

 

0.8

%

 

 

0.3

%

 

 

(2.3

%)

 

 

(3.3

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

(22.0

%)

 

 

(26.8

%)

 

 

(9.9

%)

 

 

(7.2

%)

 

 

(17.3

%)

 

 

(19.1

%)

Washington DC

 

 

(14.4

%)

 

 

(18.6

%)

 

 

(2.9

%)

 

 

(1.9

%)

 

 

(9.0

%)

 

 

(11.5

%)

New York

 

 

(28.0

%)

 

 

(27.1

%)

 

 

(9.3

%)

 

 

(6.5

%)

 

 

(20.5

%)

 

 

(18.5

%)

Seattle

 

 

(20.7

%)

 

 

(26.8

%)

 

 

(10.1

%)

 

 

(6.6

%)

 

 

(15.9

%)

 

 

(19.2

%)

Boston

 

 

(20.4

%)

 

 

(27.0

%)

 

 

(7.6

%)

 

 

(5.0

%)

 

 

(14.8

%)

 

 

(18.3

%)

Denver

 

 

(7.1

%)

 

 

(10.4

%)

 

 

3.5

%

 

 

1.6

%

 

 

(3.5

%)

 

 

(6.2

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

(17.7

%)

 

 

(20.5

%)

 

 

(5.1

%)

 

 

(3.4

%)

 

 

(12.1

%)

 

 

(13.0

%)

(1)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions. See page 3 for April 2021 preliminary data.

Equity Residential

First Quarter 2021 vs. First Quarter 2020

Total Same Store Operating Expenses Including 77,060 Same Store Apartment Units

$ in thousands

 

 

 

Q1 2021

 

 

Q1 2020

 

 

$
Change (1)

 

 

%
Change

 

 

% of
Q1 2021
Operating
Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate taxes

 

$

90,767

 

 

$

88,323

 

 

$

2,444

 

 

 

2.8

%

 

 

42.8

%

On-site payroll

 

 

42,993

 

 

 

43,009

 

 

 

(16

)

 

 

0.0

%

 

 

20.3

%

Utilities

 

 

29,945

 

 

 

27,674

 

 

 

2,271

 

 

 

8.2

%

 

 

14.1

%

Repairs and maintenance

 

 

25,835

 

 

 

23,439

 

 

 

2,396

 

 

 

10.2

%

 

 

12.2

%

Insurance

 

 

7,040

 

 

 

6,321

 

 

 

719

 

 

 

11.4

%

 

 

3.3

%

Leasing and advertising

 

 

2,803

 

 

 

2,337

 

 

 

466

 

 

 

19.9

%

 

 

1.3

%

Other on-site operating expenses

 

 

12,669

 

 

 

13,098

 

 

 

(429

)

 

 

(3.3

%)

 

 

6.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Same Store Operating Expenses (2)

(includes Residential and Non-Residential)

 

$

212,052

 

 

$

204,201

 

 

$

7,851

 

 

 

3.8

%

 

 

100.0

%

(1)

The quarter-over-quarter changes were primarily affected by the following factors:

 

 

 

Real estate taxes – Increase is lower than prior expectations due to lower rates and assessed values.

 

 

 

On-site payroll – Improved sales and service staff utilization from various technology initiatives offset other general payroll pressures.

 

 

 

Utilities – Increase driven by higher usage of water, sewer and trash.

 

 

 

Repairs and maintenance – Increase primarily driven by non-comparable items like greater snowfall on the East Coast and higher turnover expense from accelerated leasing as well as increases in minimum wage on contract services.

 

 

 

Insurance – Increase due to higher premiums on property insurance renewal due to challenging conditions in the insurance market.

 

 

 

Leasing and advertising – Increase due primarily to increased digital advertising and selective use of outside broker fees on targeted leasing activity.

 

 

 

Other on-site operating expenses – Decrease primarily driven by lower ground lease costs due to a lease modification at one property.

 

 

(2)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

Equity Residential

Debt Summary as of March 31, 2021

($ in thousands)

 

 

 

Debt

Balances (1)

 

 

% of Total

 

 

Weighted

Average

Rates (1)

 

 

Weighted

Average

Maturities

(years)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured

 

$

2,270,700

 

 

 

28.3

%

 

 

3.18

%

 

 

6.1

 

Unsecured

 

 

5,766,856

 

 

 

71.7

%

 

 

3.49

%

 

 

10.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

8,037,556

 

 

 

100.0

%

 

 

3.40

%

 

 

8.9

 

Fixed Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured – Conventional

 

$

1,899,917

 

 

 

23.7

%

 

 

3.70

%

 

 

4.7

 

Unsecured – Public

 

 

5,337,103

 

 

 

66.4

%

 

 

3.77

%

 

 

10.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Rate Debt

 

 

7,237,020

 

 

 

90.1

%

 

 

3.75

%

 

 

9.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Floating Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured – Conventional

 

 

40,546

 

 

 

0.5

%

 

 

2.38

%

 

 

1.2

 

Secured – Tax Exempt

 

 

330,237

 

 

 

4.1

%

 

 

0.45

%

 

 

15.4

 

Unsecured – Revolving Credit Facility

 

 

 

 

 

 

 

 

 

 

 

3.6

 

Unsecured – Commercial Paper Program (2)

 

 

429,753

 

 

 

5.3

%

 

 

0.30

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Floating Rate Debt

 

 

800,536

 

 

 

9.9

%

 

 

0.45

%

 

 

6.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

8,037,556

 

 

 

100.0

%

 

 

3.40

%

 

 

8.9

 

(1)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

(2)

At March 31, 2021, the weighted average maturity of commercial paper outstanding was 69 days. The weighted average amount outstanding for the quarter ended March 31, 2021 was approximately $457.3 million.

Note: The Company capitalized interest of approximately $3.8 million and $1.8 million during the quarters ended March 31, 2021 and 2020, respectively.

Equity Residential

Debt Maturity Schedule as of March 31, 2021

($ in thousands)

 

Year

 

Fixed

Rate

 

 

Floating
Rate

 

 

Total

 

 

% of Total

 

 

Weighted
Average Coupons
on Fixed
Rate Debt (1)

 

 

Weighted
Average
Coupons on
Total Debt (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

$

5,593

 

 

$

430,000

 

(2)

$

435,593

 

 

 

5.4

%

 

 

3.27

%

 

 

0.32

%

2022

 

 

264,185

 

 

 

40,846

 

 

 

305,031

 

 

 

3.8

%

 

 

3.25

%

 

 

3.12

%

2023

 

 

1,325,588

 

 

 

3,500

 

 

 

1,329,088

 

 

 

16.4

%

 

 

3.74

%

 

 

3.73

%

2024

 

 

 

 

 

6,100

 

 

 

6,100

 

 

 

0.1

%

 

N/A

 

 

 

0.06

%

2025

 

 

450,000

 

 

 

8,200

 

 

 

458,200

 

 

 

5.6

%

 

 

3.38

%

 

 

3.32

%

2026

 

 

592,025

 

 

 

9,000

 

 

 

601,025

 

 

 

7.4

%

 

 

3.58

%

 

 

3.53

%

2027

 

 

400,000

 

 

 

9,800

 

 

 

409,800

 

 

 

5.0

%

 

 

3.25

%

 

 

3.17

%

2028

 

 

900,000

 

 

 

10,700

 

 

 

910,700

 

 

 

11.2

%

 

 

3.79

%

 

 

3.75

%

2029

 

 

888,120

 

 

 

11,500

 

 

 

899,620

 

 

 

11.1

%

 

 

3.30

%

 

 

3.26

%

2030

 

 

1,095,000

 

 

 

12,600

 

 

 

1,107,600

 

 

 

13.6

%

 

 

2.55

%

 

 

2.52

%

2031+

 

 

1,379,350

 

 

 

275,535

 

 

 

1,654,885

 

 

 

20.4

%

 

 

4.37

%

 

 

3.66

%

Subtotal

 

 

7,299,861

 

 

 

817,781

 

 

 

8,117,642

 

 

 

100.0

%

 

 

3.55

%

 

 

3.23

%

Deferred Financing Costs and Unamortized (Discount)

 

 

(62,841

)

 

 

(17,245

)

 

 

(80,086

)

 

N/A

 

 

N/A

 

 

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

7,237,020

 

 

$

800,536

 

 

$

8,037,556

 

 

 

100.0

%

 

 

3.55

%

 

 

3.23

%

(1)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

(2)

Represents principal outstanding on the Company’s commercial paper program.

Equity Residential

Selected Unsecured Public Debt Covenants

 

 

 

March 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Debt to Adjusted Total Assets (not to exceed 60%)

 

30.4%

 

 

30.5%

 

 

 

 

 

 

 

 

Secured Debt to Adjusted Total Assets (not to exceed 40%)

 

9.4%

 

 

9.6%

 

 

 

 

 

 

 

 

Consolidated Income Available for Debt Service to

 

 

 

 

Maximum Annual Service Charges

 

 

 

 

(must be at least 1.5 to 1)

 

5.30

 

 

5.42

 

 

 

 

 

 

 

 

Total Unencumbered Assets to Unsecured Debt

 

 

 

 

(must be at least 125%)

 

454.1%

 

 

458.3%

 

Note: These selected covenants represent the most restrictive financial covenants relating to ERP Operating Limited Partnership's ("ERPOP") outstanding public debt securities. Equity Residential is the general partner of ERPOP.

Selected Credit Ratios

 

 

 

March 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Total debt to Normalized EBITDAre

 

5.29x

 

 

4.99x

 

 

 

 

 

 

 

 

 

 

Net debt to Normalized EBITDAre

 

5.25x

 

 

4.96x

 

 

 

 

 

 

 

 

 

 

Unencumbered NOI as a % of total NOI

 

87.5%

 

 

86.6%

 

Note: See Normalized EBITDAre Reconciliations for detail.

Equity Residential

Capital Structure as of March 31, 2021

(Amounts in thousands except for share/unit and per share amounts)

 

Secured Debt

 

 

 

 

 

 

 

 

 

$

2,270,700

 

 

 

28.3

%

 

 

 

 

Unsecured Debt

 

 

 

 

 

 

 

 

 

 

5,766,856

 

 

 

71.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt

 

 

 

 

 

 

 

 

 

 

8,037,556

 

 

 

100.0

%

 

 

22.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares (includes Restricted Shares)

 

 

372,917,413

 

 

 

96.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Units (includes OP Units and Restricted Units)

 

 

14,042,374

 

 

 

3.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Shares and Units

 

 

386,959,787

 

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Common Share Price at March 31, 2021

 

$

71.63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,717,930

 

 

 

99.9

%

 

 

 

 

Perpetual Preferred Equity (see below)

 

 

 

 

 

 

 

 

 

 

37,280

 

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Equity

 

 

 

 

 

 

 

 

 

 

27,755,210

 

 

 

100.0

%

 

 

77.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Market Capitalization

 

 

 

 

 

 

 

 

 

$

35,792,766

 

 

 

 

 

 

 

100.0

%

Perpetual Preferred Equity as of March 31, 2021

(Amounts in thousands except for share and per share amounts)

 

Series

 

Call Date

 

Outstanding
Shares

 

 

Liquidation
Value

 

 

Annual
Dividend
Per Share

 

 

Annual
Dividend
Amount

 

Preferred Shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8.29% Series K

 

12/10/26

 

 

745,600

 

 

$

37,280

 

 

$

4.145

 

 

$

3,091

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Residential

Common Share and Unit

Weighted Average Amounts Outstanding

 

 

 

Q1 2021

 

 

Q1 2020

 

 

 

 

 

 

 

 

 

 

Weighted Average Amounts Outstanding for Net Income Purposes:

 

 

 

 

 

 

 

 

Common Shares - basic

 

 

372,279,711

 

 

 

371,582,086

 

Shares issuable from assumed conversion/vesting of:

 

 

 

 

 

 

 

 

- OP Units

 

 

13,050,142

 

 

 

13,003,900

 

- long-term compensation shares/units

 

 

1,586,077

 

 

 

2,363,095

 

 

 

 

 

 

 

 

 

 

Total Common Shares and Units - diluted

 

 

386,915,930

 

 

 

386,949,081

 

 

 

 

 

 

 

 

 

 

Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes:

 

 

 

 

 

 

 

 

Common Shares - basic

 

 

372,279,711

 

 

 

371,582,086

 

OP Units - basic

 

 

13,050,142

 

 

 

13,003,900

 

 

 

 

 

 

 

 

 

 

Total Common Shares and OP Units - basic

 

 

385,329,853

 

 

 

384,585,986

 

Shares issuable from assumed conversion/vesting of:

 

 

 

 

 

 

 

 

- long-term compensation shares/units

 

 

1,586,077

 

 

 

2,363,095

 

 

 

 

 

 

 

 

 

 

Total Common Shares and Units - diluted

 

 

386,915,930

 

 

 

386,949,081

 

 

 

 

 

 

 

 

 

 

Period Ending Amounts Outstanding:

 

 

 

 

 

 

 

 

Common Shares (includes Restricted Shares)

 

 

372,917,413

 

 

 

372,104,054

 

Units (includes OP Units and Restricted Units)

 

 

14,042,374

 

 

 

13,932,433

 

 

 

 

 

 

 

 

 

 

Total Shares and Units

 

 

386,959,787

 

 

 

386,036,487

 

Equity Residential

Development and Lease-Up Projects as of March 31, 2021

(Amounts in thousands except for project and apartment unit amounts)

 

 

 

 

 

No. of

 

 

Total
Budgeted

 

 

Total
Book

 

 

Total Book
Value Not

 

 

 

 

 

 

 

 

 

 

Estimated/Actual

 

 

 

 

 

 

 

 

Projects

 

Location

 

Apartment
Units

 

 

Capital
Cost

 

 

Value
to Date

 

 

Placed in
Service

 

 

Total
Debt

 

 

Percentage
Completed

 

 

Initial
Occupancy

 

 

Completion
Date

 

Stabilization
Date

 

Percentage
Leased

 

 

Percentage
Occupied