Company Announcements

Equity Residential Reports Second Quarter 2021 Results

Full Year Guidance Ranges Raised as Strong Recovery Continues Across Portfolio

CHICAGO--(BUSINESS WIRE)--Jul. 27, 2021-- Equity Residential (NYSE: EQR) today reported results for the quarter and six months ended June 30, 2021 and has posted a Q2 2021 Management Presentation to its website as referenced below.

Second Quarter 2021 Results

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended June 30,

 

 

 

 

 

2021

 

 

2020

 

 

$ Change

 

 

% Change

 

 

 

Earnings Per Share (EPS)

 

$

0.84

 

 

$

0.70

 

 

$

0.14

 

 

 

20.0

%

 

 

Funds from Operations (FFO) per share

 

$

0.78

 

 

$

0.86

 

 

$

(0.08

)

 

 

(9.3

%)

 

 

Normalized FFO per share

 

$

0.72

 

 

$

0.86

 

 

$

(0.14

)

 

 

(16.3

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

 

 

2021

 

 

2020

 

 

$ Change

 

 

% Change

 

 

 

Earnings Per Share (EPS)

 

$

1.00

 

 

$

1.53

 

 

$

(0.53

)

 

 

(34.6

%)

 

 

Funds from Operations (FFO) per share

 

$

1.45

 

 

$

1.72

 

 

$

(0.27

)

 

 

(15.7

%)

 

 

Normalized FFO per share

 

$

1.40

 

 

$

1.72

 

 

$

(0.32

)

 

 

(18.6

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Driven by an accelerating economy and the reopening of cities, our operations continue to recover rapidly with robust demand for our apartments in all our markets leading to high occupancy, increased pricing power and an almost complete absence of new lease concessions. This has driven pricing and Physical Occupancy up so quickly that they now equal or exceed 2019 levels in most of our markets,” said Mark J. Parrell, Equity Residential’s President and CEO. “Based on these positive indicators, we are pleased to raise our annual same store revenue guidance range to (5%) - (4%) with an expectation that quarter over quarter same store revenue growth could return as early as the fourth quarter of this year.”

Highlights

  • Strong Physical Occupancy and rapid improvement in other same store operating metrics drove quarterly sequential same store revenue and NOI positive in the second quarter for the first time since the beginning of the pandemic. As a result, the Company raised its annual guidance ranges for same store revenues and NOI, as well as EPS, FFO per share and Normalized FFO per share, and reduced the range for same store expenses.
  • During the second quarter and July 2021, the Company acquired seven operating properties, consisting of 1,894 apartment units, for an aggregate purchase price of approximately $645.7 million at a weighted average Acquisition Cap Rate of 4.0%. The acquisitions include two properties in Austin, TX and two properties in Atlanta, GA, marking the Company’s re-entry into these markets. See the Management Presentation for details.
  • During the second quarter and July 2021, the Company sold six operating properties, consisting of 866 apartment units, for an aggregate sales price of approximately $434.8 million at a weighted average Disposition Yield of 3.8%.
  • During the second quarter of 2021, the Company completed the development of one joint venture property, Aero Apartments, consisting of 200 apartment units in the San Francisco market.
  • The Company continued to collect approximately 97% of its expected Residential revenues in the second quarter of 2021.

Results Per Share

The change in EPS for the quarter ended June 30, 2021 compared to the same period of 2020 is due primarily to higher property sale gains in the second quarter of 2021, the various adjustment items listed on page 26 of this release and the items described below. The change in EPS for the six months ended June 30, 2021 compared to the same period of 2020 is due primarily to lower property sale gains in the first six months of 2021, the various adjustment items listed on page 26 of this release and the items described below.

The per share change in FFO for both the quarter and six months ended June 30, 2021 compared to the same period of 2020 is due primarily to the various adjustment items listed on page 26 of this release and the items described below.

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

 

 

Positive/(Negative) Impact

 

 

 

Second Quarter 2021 vs.
Second Quarter 2020

 

 

June YTD 2021 vs.
June YTD 2020

 

Residential same store Net Operating Income (NOI)

 

$

(0.15

)

 

$

(0.34

)

Non-Residential same store NOI

 

 

0.01

 

 

 

0.01

 

2021 and 2020 transaction activity impact on NOI, net

 

 

(0.02

)

 

 

(0.05

)

Interest expense, net

 

 

0.04

 

 

 

0.08

 

Other items, including corporate overhead (1)

 

 

(0.02

)

 

 

(0.02

)

Net

 

$

(0.14

)

 

$

(0.32

)

(1)

Corporate overhead includes property management and general and administrative expenses.

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

Same Store Results

The Company has provided a breakout of Residential and Non-Residential same store results on page 11 of this release with definitions that can be found on page 32 of this release. Non-Residential operations account for approximately 3.8% of total revenues for the six months ended June 30, 2021. The table below reflects same store Residential only results.

 

 

Second Quarter 2021 vs.
Second Quarter 2020

 

 

Second Quarter 2021 vs.
First Quarter 2021

 

 

June YTD 2021 vs.
June YTD 2020

 

Apartment Units

 

76,556

 

 

76,931

 

 

76,335

 

Physical Occupancy

 

96.1% vs. 94.9%

 

 

96.1% vs. 95.0%

 

 

95.5% vs. 95.6%

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

(8.4%)

 

 

0.2%

 

 

(9.5%)

 

Expenses

 

3.4%

 

 

(4.6%)

 

 

3.6%

 

NOI

 

(13.5%)

 

 

2.9%

 

 

(15.4%)

 

 

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 12 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.

 

 

Second Quarter 2021 vs.
Second Quarter 2020

 

 

Second Quarter 2021 vs.
First Quarter 2021

 

 

June YTD 2021 vs.
June YTD 2020

 

 

 

% Change

 

 

% Change

 

 

% Change

 

Same Store Residential Revenues-

  comparable period

 

 

 

 

 

 

 

 

 

 

 

 

Lease rates (1)

 

 

(7.5

%)

 

 

(1.0

%)

 

 

(7.1

%)

Leasing Concessions (2)

 

 

(1.8

%)

 

 

(0.2

%)

 

 

(1.7

%)

Vacancy loss

 

 

1.6

%

 

 

1.1

%

 

 

0.3

%

Bad Debt, Net (3)

 

 

(0.5

%)

 

 

0.2

%

 

 

(1.0

%)

Other (4)

 

 

(0.2

%)

 

 

0.1

%

 

 

0.0

%

Same Store Residential Revenues-

  current period

 

 

(8.4

%)

 

 

0.2

%

 

 

(9.5

%)

(1)

The decline in lease rates is driven by the cumulative impact of leasing activity over the past twelve months despite meaningful recent improvements.

(2)

Reflects upfront discounts on both new move-in and renewal leases on a straight-line basis. See page 12 for more detail.

(3)

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

(4)

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:

 

 

Q1 2021

 

 

Q2 2021

 

 

July 2021 (1)

 

Physical Occupancy (2)

 

95.6%

 

 

96.3%

 

 

96.4%

 

Percentage of Residents Renewing by quarter/month

 

52.9%

 

 

53.2%

 

 

55.0%

 

 

 

 

 

 

 

 

 

 

 

New Lease Change

 

(17.7%)

 

 

(5.3%)

 

 

6.3%

 

Renewal Rate Achieved

 

(5.2%)

 

 

0.2%

 

 

3.6%

 

Blended Rate

 

(12.2%)

 

 

(2.7%)

 

 

4.8%

 

 

(1)

July 2021 results are preliminary.

(2)

Physical Occupancy is as of month-end March for Q1 2021, month-end June for Q2 2021 and as of July 22nd for July 2021.

Investment Activity

The Company acquired three properties, consisting of 813 apartment units, during the second quarter of 2021 for an aggregate purchase price of approximately $280.2 million at a weighted average Acquisition Capitalization Rate of 3.9%. The properties are located in Denver, CO, Fairfax, VA and Atlanta, GA. Subsequent to the end of the second quarter, the Company acquired four properties, consisting of 1,081 apartment units, for an aggregate purchase price of approximately $365.5 million at a weighted average Acquisition Capitalization Rate of 4.1%. Two of the properties are located in Austin, TX, one in Atlanta, GA and the other in suburban Boston, MA. Also subsequent to the end of the second quarter, the Company acquired one land parcel in a joint venture for future development, located in Denver, CO, for a purchase price of approximately $4.9 million. The Company did not acquire any properties in the first quarter of 2021, therefore, the year-to-date 2021 acquisition activity is the same as listed above.

The Company sold five properties during the second quarter of 2021, consisting of 795 apartment units, for an aggregate sale price of approximately $409.5 million at a weighted average Disposition Yield of 3.7%, generating an Unlevered IRR of 8.8%. Three of the properties are located in suburban Los Angeles, CA, one in suburban New York, NY and one in suburban Seattle, WA. Subsequent to the end of the second quarter, the Company sold one property, located in suburban San Francisco, CA, consisting of 71 apartment units, for a sale price of approximately $25.3 million, at a Disposition Yield of 4.4%. The Company did not sell any properties during the first quarter of 2021, therefore, the year-to-date 2021 disposition activity is the same as listed above.

“We are making excellent progress in investing capital in Denver and in our new target markets of Atlanta and Austin, while also adding properties in the suburbs of our established coastal markets that are attractive to our affluent renter customer base. We are funding this investment activity by selling older, less desirable or regulatorily challenged assets, especially in California, at pricing that exceeds our pre-pandemic values. We expect little to no dilution from this activity and believe that trading into newer assets in our expansion markets and in suburban locations in our established markets with the same high quality customer base will have both diversification and capital expenditure benefits,” said Mr. Parrell.

Third Quarter 2021 Guidance

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

 

 

Q3 2021
Guidance

EPS

 

$1.38 to $1.42

FFO per share

 

$0.71 to $0.75

Normalized FFO per share

 

$0.72 to $0.76

The difference between the second quarter 2021 actual EPS of $0.84 and the third quarter of 2021 EPS guidance midpoint of $1.40 is due primarily to higher expected property sale gains and same store NOI, partially offset by lower expected non-operating asset gains.

The difference between the second quarter 2021 actual FFO of $0.78 per share and the third quarter of 2021 FFO guidance midpoint of $0.73 per share is due primarily to lower expected non-operating asset gains, partially offset by higher expected same store NOI.

The difference between the second quarter 2021 actual Normalized FFO of $0.72 per share and the third quarter of 2021 Normalized FFO guidance midpoint of $0.74 per share is due primarily to higher expected same store NOI.

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

 

95.3% to 96.3%

 

95.0% to 96.0%

Revenue change

 

(5.0%) to (4.0%)

 

(8.0%) to (6.0%)

Expense change

 

2.75% to 3.25%

 

3.0% to 4.0%

NOI change

 

(8.5%) to (7.5%)

 

(13.0%) to (11.0%)

 

 

 

 

 

EPS

 

$3.03 to $3.13

 

$2.57 to $2.67

FFO per share

 

$2.89 to $2.99

 

$2.67 to $2.77

Normalized FFO per share

 

$2.85 to $2.95

 

$2.70 to $2.80

The change in the full year 2021 EPS guidance range is due primarily to higher expected property sale gains and same store NOI and higher non-operating asset gains realized in the second quarter of 2021.

The change in the full year 2021 FFO per share guidance range is due primarily to higher expected same store NOI and higher non-operating asset gains realized in the second quarter of 2021.

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. As of July 26, 2021, Equity Residential owns or has investments in 306 properties consisting of 79,117 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta and Austin. 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, July 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)

 

 

 

Six Months Ended June 30,

 

 

Quarter Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

1,195,661

 

 

$

1,335,837

 

 

$

598,059

 

 

$

653,532

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and maintenance

 

 

224,800

 

 

 

220,268

 

 

 

107,746

 

 

 

104,452

 

Real estate taxes and insurance

 

 

200,871

 

 

 

192,770

 

 

 

97,401

 

 

 

95,038

 

Property management

 

 

50,585

 

 

 

51,317

 

 

 

24,455

 

 

 

23,608

 

General and administrative

 

 

30,061

 

 

 

26,353

 

 

 

14,678

 

 

 

11,835

 

Depreciation

 

 

400,635

 

 

 

418,398

 

 

 

200,673

 

 

 

205,976

 

Total expenses

 

 

906,952

 

 

 

909,106

 

 

 

444,953

 

 

 

440,909

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain (loss) on sales of real estate properties

 

 

223,695

 

 

 

352,243

 

 

 

223,738

 

 

 

144,266

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

512,404

 

 

 

778,974

 

 

 

376,844

 

 

 

356,889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

 

24,320

 

 

 

3,471

 

 

 

24,104

 

 

 

1,511

 

Other expenses

 

 

(7,452

)

 

 

(4,227

)

 

 

(3,342

)

 

 

(1,694

)

Interest:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense incurred, net

 

 

(134,482

)

 

 

(167,475

)

 

 

(67,124

)

 

 

(81,885

)

Amortization of deferred financing costs

 

 

(4,124

)

 

 

(4,152

)

 

 

(1,939

)

 

 

(2,111

)

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

  investments in unconsolidated entities and net gain (loss)

  on sales of land parcels

 

 

390,666

 

 

 

606,591

 

 

 

328,543

 

 

 

272,710

 

Income and other tax (expense) benefit

 

 

(395

)

 

 

(240

)

 

 

(242

)

 

 

(187

)

Income (loss) from investments in unconsolidated entities

 

 

(1,872

)

 

 

(2,199

)

 

 

(261

)

 

 

(1,042

)

Net gain (loss) on sales of land parcels

 

 

5

 

 

 

 

 

 

 

 

 

 

Net income

 

 

388,404

 

 

 

604,152

 

 

 

328,040

 

 

 

271,481

 

Net (income) loss attributable to Noncontrolling Interests:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Partnership

 

 

(13,056

)

 

 

(21,248

)

 

 

(10,913

)

 

 

(9,713

)

Partially Owned Properties

 

 

(1,423

)

 

 

(13,410

)

 

 

(741

)

 

 

(880

)

Net income attributable to controlling interests

 

 

373,925

 

 

 

569,494

 

 

 

316,386

 

 

 

260,888

 

Preferred distributions

 

 

(1,545

)

 

 

(1,545

)

 

 

(772

)

 

 

(772

)

Net income available to Common Shares

 

$

372,380

 

 

$

567,949

 

 

$

315,614

 

 

$

260,116

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

1.00

 

 

$

1.53

 

 

$

0.84

 

 

$

0.70

 

Weighted average Common Shares outstanding

 

 

373,050

 

 

 

371,689

 

 

 

373,812

 

 

 

371,795

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

1.00

 

 

$

1.53

 

 

$

0.84

 

 

$

0.70

 

Weighted average Common Shares outstanding

 

 

387,367

 

 

 

386,272

 

 

 

387,820

 

 

 

385,913

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions declared per Common Share outstanding

 

$

1.205

 

 

$

1.205

 

 

$

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)

 

 

 

Six Months Ended June 30,

 

 

Quarter Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net income

 

$

388,404

 

 

$

604,152

 

 

$

328,040

 

 

$

271,481

 

Net (income) loss attributable to Noncontrolling Interests – Partially

  Owned Properties

 

 

(1,423

)

 

 

(13,410

)

 

 

(741

)

 

 

(880

)

Preferred distributions

 

 

(1,545

)

 

 

(1,545

)

 

 

(772

)

 

 

(772

)

Net income available to Common Shares and Units

 

 

385,436

 

 

 

589,197

 

 

 

326,527

 

 

 

269,829

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

400,635

 

 

 

418,398

 

 

 

200,673

 

 

 

205,976

 

Depreciation – Non-real estate additions

 

 

(2,176

)

 

 

(2,307

)

 

 

(1,076

)

 

 

(1,020

)

Depreciation – Partially Owned Properties

 

 

(1,682

)

 

 

(1,686

)

 

 

(854

)

 

 

(830

)

Depreciation – Unconsolidated Properties

 

 

1,233

 

 

 

1,224

 

 

 

616

 

 

 

611

 

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

  assets

 

 

(4

)

 

 

 

 

 

 

 

 

 

Net (gain) loss on sales of real estate properties

 

 

(223,695

)

 

 

(352,243

)

 

 

(223,738

)

 

 

(144,266

)

Noncontrolling Interests share of gain (loss) on sales

  of real estate properties

 

 

 

 

 

11,655

 

 

 

 

 

 

 

FFO available to Common Shares and Units

 

 

559,747

 

 

 

664,238

 

 

 

302,148

 

 

 

330,300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments (see note for additional detail):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment – non-operating assets

 

 

 

 

 

 

 

 

 

 

 

 

Write-off of pursuit costs

 

 

2,647

 

 

 

3,278

 

 

 

1,316

 

 

 

1,651

 

Debt extinguishment and preferred share redemption (gains)

  losses

 

 

264

 

 

 

32

 

 

 

 

 

 

32

 

Non-operating asset (gains) losses

 

 

(23,308

)

 

 

670

 

 

 

(24,162

)

 

 

229

 

Other miscellaneous items

 

 

3,341

 

 

 

(2,310

)

 

 

1,099

 

 

 

(1,392

)

Normalized FFO available to Common Shares and Units

 

$

542,691

 

 

$

665,908

 

 

$

280,401

 

 

$

330,820

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

$

561,292

 

 

$

665,783

 

 

$

302,920

 

 

$

331,072

 

Preferred distributions

 

 

(1,545

)

 

 

(1,545

)

 

 

(772

)

 

 

(772

)

FFO available to Common Shares and Units

 

$

559,747

 

 

$

664,238

 

 

$

302,148

 

 

$

330,300

 

FFO per share and Unit – basic

 

$

1.45

 

 

$

1.73

 

 

$

0.78

 

 

$

0.86

 

FFO per share and Unit – diluted

 

$

1.45

 

 

$

1.72

 

 

$

0.78

 

 

$

0.86

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Normalized FFO

 

$

544,236

 

 

$

667,453

 

 

$

281,173

 

 

$

331,592

 

Preferred distributions

 

 

(1,545

)

 

 

(1,545

)

 

 

(772

)

 

 

(772

)

Normalized FFO available to Common Shares and Units

 

$

542,691

 

 

$

665,908

 

 

$

280,401

 

 

$

330,820

 

Normalized FFO per share and Unit – basic

 

$

1.41

 

 

$

1.73

 

 

$

0.73

 

 

$

0.86

 

Normalized FFO per share and Unit – diluted

 

$

1.40

 

 

$

1.72

 

 

$

0.72

 

 

$

0.86

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average Common Shares and Units outstanding – basic

 

 

385,594

 

 

 

384,702

 

 

 

385,856

 

 

 

384,818

 

Weighted average Common Shares and Units outstanding – diluted

 

 

387,367

 

 

 

386,272

 

 

 

387,820

 

 

 

385,913

 

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)

 

 

 

June 30,

 

 

December 31,

 

 

 

2021

 

 

2020

 

ASSETS

 

 

 

 

 

 

 

 

Land

 

$

5,780,705

 

 

$

5,785,367

 

Depreciable property

 

 

21,161,984

 

 

 

20,920,654

 

Projects under development

 

 

372,243

 

 

 

411,134

 

Land held for development

 

 

90,446

 

 

 

86,170

 

Investment in real estate

 

 

27,405,378

 

 

 

27,203,325

 

Accumulated depreciation

 

 

(8,164,287

)

 

 

(7,859,657

)

Investment in real estate, net

 

 

19,241,091

 

 

 

19,343,668

 

Investments in unconsolidated entities

 

 

53,364

 

 

 

52,782

 

Cash and cash equivalents

 

 

39,492

 

 

 

42,591

 

Restricted deposits

 

 

353,009

 

 

 

57,137

 

Right-of-use assets

 

 

480,671

 

 

 

499,287

 

Other assets

 

 

296,719

 

 

 

291,426

 

Total assets

 

$

20,464,346

 

 

$

20,286,891

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Mortgage notes payable, net

 

$

2,280,251

 

 

$

2,293,890

 

Notes, net

 

 

5,338,671

 

 

 

5,335,536

 

Line of credit and commercial paper

 

 

631,770

 

 

 

414,830

 

Accounts payable and accrued expenses

 

 

114,288

 

 

 

107,366

 

Accrued interest payable

 

 

65,814

 

 

 

65,896

 

Lease liabilities

 

 

314,379

 

 

 

329,130

 

Other liabilities

 

 

341,817

 

 

 

345,064

 

Security deposits

 

 

62,228

 

 

 

60,480

 

Distributions payable

 

 

232,958

 

 

 

232,262

 

Total liabilities

 

 

9,382,176

 

 

 

9,184,454

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable Noncontrolling Interests – Operating Partnership

 

 

440,123

 

 

 

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 June 30, 2021 and December 31, 2020

 

 

37,280

 

 

 

37,280

 

Common Shares of beneficial interest, $0.01 par value;

  1,000,000,000 shares authorized; 374,354,830 shares issued

  and outstanding as of June 30, 2021 and 372,302,000

  shares issued and outstanding as of December 31, 2020

 

 

3,744

 

 

 

3,723

 

Paid in capital

 

 

9,110,121

 

 

 

9,128,599

 

Retained earnings

 

 

1,321,875

 

 

 

1,399,715

 

Accumulated other comprehensive income (loss)

 

 

(39,029

)

 

 

(43,666

)

Total shareholders’ equity

 

 

10,433,991

 

 

 

10,525,651

 

Noncontrolling Interests:

 

 

 

 

 

 

 

 

Operating Partnership

 

 

205,691

 

 

 

233,162

 

Partially Owned Properties

 

 

2,365

 

 

 

4,673

 

Total Noncontrolling Interests

 

 

208,056

 

 

 

237,835

 

Total equity

 

 

10,642,047

 

 

 

10,763,486

 

Total liabilities and equity

 

$

20,464,346

 

 

$

20,286,891

 

Equity Residential

Portfolio Summary

As of June 30, 2021

 

 

 

 

 

 

 

 

 

 

% of

Stabilized

 

 

Average

 

 

 

 

 

 

 

Apartment

 

 

Budgeted

 

 

Rental

 

Markets/Metro Areas

 

Properties

 

 

Units

 

 

NOI

 

 

Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Established Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

69

 

 

 

16,193

 

 

 

20.8

%

 

$

2,400

 

Orange County

 

 

13

 

 

 

4,028

 

 

 

5.4

%

 

 

2,255

 

San Diego

 

 

11

 

 

 

2,706

 

 

 

3.8

%

 

 

2,408

 

Subtotal – Southern California

 

 

93

 

 

 

22,927

 

 

 

30.0

%

 

 

2,375

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

49

 

 

 

12,907

 

 

 

18.6

%

 

 

2,836

 

Washington DC

 

 

48

 

 

 

14,944

 

 

 

17.4

%

 

 

2,311

 

Seattle

 

 

45

 

 

 

9,332

 

 

 

11.3

%

 

 

2,207

 

New York

 

 

36

 

 

 

9,343

 

 

 

11.1

%

 

 

3,405

 

Boston

 

 

25

 

 

 

6,430

 

 

 

9.4

%

 

 

2,826

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expansion Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denver

 

 

6

 

 

 

1,904

 

 

 

1.9

%

 

 

2,011

 

Atlanta

 

 

1

 

 

 

320

 

 

 

0.3

%

 

 

1,960

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

303

 

 

 

78,107

 

 

 

100.0

%

 

$

2,567

 

 

 

 

Properties

 

 

Apartment Units

 

 

 

 

 

 

 

 

 

 

Wholly Owned Properties

 

 

286

 

 

 

74,468

 

Master-Leased Properties – Consolidated

 

 

1

 

 

 

162

 

Partially Owned Properties – Consolidated

 

 

16

 

 

 

3,477

 

 

 

 

 

 

 

 

 

 

 

 

 

303

 

 

 

78,107

 

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

Equity Residential

Portfolio Rollforward

($ in thousands)

 

 

 

 

 

Properties

 

 

Apartment

Units

 

 

Purchase

Price

 

 

Acquisition

Cap Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12/31/2020 and 3/31/2021

 

 

304

 

 

 

77,889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties

 

 

 

 

2

 

 

 

533

 

 

$

185,000

 

 

 

3.9

%

Consolidated Rental Properties – Not Stabilized (A)

 

 

1

 

 

 

280

 

 

$

95,200

 

 

 

4.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Price

 

 

Disposition

Yield

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dispositions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties

 

 

 

 

(5

)

 

 

(795

)

 

$

(409,500

)

 

 

(3.7

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completed Developments – Consolidated

 

 

 

 

1

 

 

 

200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6/30/2021

 

 

303

 

 

 

78,107

 

 

 

 

 

 

 

 

 

(A)

The Company acquired one property in the Denver market in the second quarter of 2021 that is in lease-up and is expected to stabilize in its second year of ownership at the Acquisition Cap Rate listed above.

 
Note:

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

Equity Residential

 

Second Quarter 2021 vs. Second Quarter 2020

Same Store Results/Statistics Including 76,556 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

Second Quarter 2021

 

 

Second Quarter 2020

 

 

 

Residential

 

 

% Change

 

 

Non-

Residential

 

 

% Change

 

 

Total

 

 

% Change

 

 

 

 

Residential

 

 

Non-

Residential

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

567,856

 

(1)

(8.4%)

 

 

$

21,152

 

(2)

43.8%

 

 

$

589,008

 

 

(7.2%)

 

 

Revenues

 

$

619,684

 

 

$

14,709

 

 

$

634,393

 

Expenses

 

$

195,129

 

 

3.4%

 

 

$

6,078

 

 

18.0%

 

 

$

201,207

 

 

3.8%

 

 

Expenses

 

$

188,770

 

 

$

5,150

 

 

$

193,920

 

NOI

 

$

372,727

 

 

(13.5%)

 

 

$

15,074

 

 

57.7%

 

 

$

387,801

 

 

(12.0%)

 

 

NOI

 

$

430,914

 

 

$

9,559

 

 

$

440,473

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

 

$

2,574

 

 

(9.5%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

 

$

2,845

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

 

96.1

%

 

1.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

 

94.9

%

 

 

 

 

 

 

 

 

Turnover

 

 

11.3

%

 

(0.5%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Turnover

 

 

11.8

%

 

 

 

 

 

 

 

 

 
 

Second Quarter 2021 vs. First Quarter 2021

Same Store Results/Statistics Including 76,931 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

Second Quarter 2021

 

 

First Quarter 2021

 

 

 

Residential

 

 

% Change

 

 

Non-

Residential

 

 

% Change

 

 

Total

 

 

% Change

 

 

 

 

Residential

 

 

Non-

Residential

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

569,853

 

(1)

0.2%

 

 

$

21,184

 

(2)

(2.4%)

 

 

$

591,037

 

 

0.1%

 

 

Revenues

 

$

568,807

 

 

$

21,713

 

 

$

590,520

 

Expenses

 

$

195,707

 

 

(4.6%)

 

 

$

6,079

 

 

0.8%

 

 

$

201,786

 

 

(4.4%)

 

 

Expenses

 

$

205,058

 

 

$

6,033

 

 

$

211,091

 

NOI

 

$

374,146

 

 

2.9%

 

 

$

15,105

 

 

(3.7%)

 

 

$

389,251

 

 

2.6%

 

 

NOI

 

$

363,749

 

 

$

15,680

 

 

$

379,429

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

 

$

2,571

 

 

(1.0%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

 

$

2,596

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

 

96.1

%

 

1.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

 

95.0

%

 

 

 

 

 

 

 

 

Turnover

 

 

11.4

%

 

1.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Turnover

 

 

10.0

%

 

 

 

 

 

 

 

 

 

June YTD 2021 vs. June YTD 2020

Same Store Results/Statistics Including 76,335 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

 

June YTD 2021

 

 

June YTD 2020

 

 

 

Residential

 

 

% Change

 

 

Non-

Residential

 

 

% Change

 

 

Total

 

 

% Change

 

 

 

 

Residential

 

 

Non-

Residential

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,131,724

 

(1)

(9.5%)

 

 

$

42,839

 

(2)

13.3%

 

 

$

1,174,563

 

 

(8.9%)

 

 

Revenues

 

$

1,250,911

 

 

$

37,821

 

 

$

1,288,732

 

Expenses

 

$

398,834

 

 

3.6%

 

 

$

12,106

 

 

10.2%

 

 

$

410,940

 

 

3.8%

 

 

Expenses

 

$

384,969

 

 

$

10,983

 

 

$

395,952

 

NOI

 

$

732,890

 

 

(15.4%)

 

 

$

30,733

 

 

14.5%

 

 

$

763,623

 

 

(14.5%)

 

 

NOI

 

$

865,942

 

 

$

26,838

 

 

$

892,780

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

 

$

2,588

 

 

(9.4%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

 

$

2,857

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

 

95.5

%

 

(0.1%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

 

95.6

%

 

 

 

 

 

 

 

 

Turnover

 

 

21.3

%

 

(0.3%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Turnover

 

 

21.6

%

 

 

 

 

 

 

 

 

(1)

See page 12 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:

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

• Second Quarter 2021 vs. First Quarter 2021 – Primarily lower early lease termination settlement income from retail tenants.

 

• June YTD 2021 vs. June YTD 2020 – Primarily lower bad debt and higher parking income.

Equity Residential

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

$ in thousands

 

 

Second Quarter 2021 vs. Second Quarter 2020

 

 

Second Quarter 2021 vs. First Quarter 2021

 

 

June YTD 2021 vs. June YTD 2020

 

 

76,556 Same Store Apartment Units

 

 

76,931 Same Store Apartment Units

 

 

76,335 Same Store Apartment Units

 

 

Q2 2021

 

 

Q2 2020

 

 

Q2 2021

 

 

Q1 2021

 

 

June YTD 2021

 

 

June YTD 2020

 

Same Store Residential Revenues (GAAP Basis)

$

567,856

 

 

$

619,684

 

 

$

569,853

 

 

$

568,807

 

 

$

1,131,724

 

 

$

1,250,911

 

Leasing Concessions amortized

 

13,081

 

 

 

1,623

 

 

 

13,184

 

 

 

11,771

 

 

 

24,644

 

 

 

2,693

 

Leasing Concessions granted (2)

 

(8,218

)

 

 

(2,741

)

 

 

(8,298

)

 

 

(17,140

)

 

 

(25,170

)

 

 

(4,633

)

Same Store Residential Revenues with Leasing

  Concessions on a cash basis

$

572,719

 

 

$

618,566

 

 

$

574,739

 

 

$

563,438

 

 

$

1,131,198

 

 

$

1,248,971

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% change - GAAP revenue

 

(8.4

%)

 

 

 

 

 

 

0.2

%

 

 

 

 

 

 

(9.5

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% change - cash revenue

 

(7.4

%)

 

 

 

 

 

 

2.0

%

 

 

 

 

 

 

(9.4

%)

 

 

 

 

(1)

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

 

 

(2)

Monthly Leasing Concessions granted continue to decline. Leasing Concessions granted in June and July (preliminary) 2021 are $2.0 million and $1.5 million, respectively, which are down from their peak of $6.1 million per month in February 2021.

 

Same Store Resident/Tenant Accounts Receivable Balances

Including 76,335 Same Store Apartment Units

$ in thousands

 

 

 

Residential

 

 

Non-Residential

 

Balance Sheet (Other assets):

 

June 30, 2021

 

 

March 31, 2021

 

 

June 30, 2021

 

 

March 31, 2021

 

Resident/tenant accounts receivable balances

$

43,793

 

 

$

37,420

 

 

$

6,035

 

 

$

6,499

 

Allowance for doubtful accounts

 

(38,803

)

 

 

(31,453

)

 

 

(5,232

)

 

 

(5,669

)

Net receivable balances

$

4,990

 

(1)

$

5,967

 

 

$

803

 

 

$

830

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line receivable balances

 

$

20,204

 

(2)

$

25,028

 

 

$

12,780

 

 

$

13,306

 

(1)

The Company held same store Residential security deposits approximating 42.3% of the net receivable balance at June 30, 2021.

 

 

(2)

Total same store Residential Leasing Concessions granted in the second quarter of 2021 were approximately $8.2 million. The straight-line receivable balance of $20.2 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 half of 2022.

 

Same Store Residential Bad Debt

Including 76,335 Same Store Apartment Units

$ in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement (Rental income):

 

Q2 2021

 

 

Q1 2021

 

 

Q2 2020

 

Bad Debt, Net

 

$

12,215

 

 

$

13,593

 

 

$

9,403

 

% of Same Store Residential Revenues

 

 

2.2

%

 

 

2.4

%

 

 

1.5

%

Equity Residential

Second Quarter 2021 vs. Second Quarter 2020

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Year's Quarter

 

Markets/Metro Areas

 

Apartment

Units

 

 

Q2 2021

% of

Actual

NOI

 

 

Q2 2021

Average

Rental

Rate

 

 

Q2 2021

Weighted

Average

Physical

Occupancy %

 

 

Q2 2021

Turnover

 

 

Revenues

 

 

Expenses

 

 

NOI

 

 

Average

Rental

Rate

 

 

Physical

Occupancy

 

 

Turnover

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

16,193

 

 

 

20.4

%

 

$

2,400

 

 

 

96.5

%

 

 

10.6

%

 

 

(4.8

%)

 

 

2.6

%

 

 

(8.0

%)

 

 

(6.5

%)

 

 

1.8

%

 

 

(1.4

%)

Orange County

 

 

4,028

 

 

 

5.5

%

 

 

2,255

 

 

 

97.9

%

 

 

8.3

%

 

 

1.3

%

 

 

3.6

%

 

 

0.6

%

 

 

(0.3

%)

 

 

1.6

%

 

 

(1.5

%)

San Diego

 

 

2,706

 

 

 

3.9

%

 

 

2,408

 

 

 

98.2

%

 

 

10.1

%

 

 

3.2

%

 

 

2.2

%

 

 

3.6

%

 

 

1.7

%

 

 

1.5

%

 

 

(0.2

%)

Subtotal – Southern California

 

 

22,927

 

 

 

29.8

%

 

 

2,375

 

 

 

96.9

%

 

 

10.1

%

 

 

(2.9

%)

 

 

2.7

%

 

 

(5.1

%)

 

 

(4.6

%)

 

 

1.7

%

 

 

(1.3

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

12,707

 

 

 

19.1

%

 

 

2,825

 

 

 

95.3

%

 

 

11.4

%

 

 

(14.5

%)

 

 

3.8

%

 

 

(20.6

%)

 

 

(14.9

%)

 

 

0.5

%

 

 

(0.3

%)

Washington DC

 

 

14,569

 

 

 

17.7

%

 

 

2,316

 

 

 

96.3

%

 

 

12.0

%

 

 

(4.8

%)

 

 

3.1

%

 

 

(8.2

%)

 

 

(5.8

%)

 

 

0.9

%

 

 

0.7

%

New York

 

 

9,343

 

 

 

11.6

%

 

 

3,405

 

 

 

95.2

%

 

 

10.1

%

 

 

(13.0

%)

 

 

3.7

%

 

 

(26.1

%)

 

 

(14.0

%)

 

 

1.2

%

 

 

(1.6

%)

Seattle

 

 

8,956

 

 

 

10.3

%

 

 

2,221

 

 

 

95.7

%

 

 

13.7

%

 

 

(10.2

%)

 

 

3.0

%

 

 

(15.5

%)

 

 

(10.5

%)

 

 

0.4

%

 

 

2.1

%

Boston

 

 

6,430

 

 

 

9.6

%

 

 

2,826

 

 

 

96.0

%

 

 

11.8

%

 

 

(8.5

%)

 

 

5.1

%

 

 

(13.7

%)

 

 

(10.9

%)

 

 

2.5

%

 

 

(1.8

%)

Denver

 

 

1,624

 

 

 

1.9

%

 

 

2,015

 

 

 

97.0

%

 

 

15.3

%

 

 

1.5

%

 

 

0.9

%

 

 

1.7

%

 

 

(1.6

%)

 

 

2.9

%

 

 

(1.8

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

76,556

 

 

 

100.0

%

 

$

2,574

 

 

 

96.1

%

 

 

11.3

%

 

 

(8.4

%)

(1)

 

3.4

%

 

 

(13.5

%)

 

 

(9.5

%)

 

 

1.2

%

 

 

(0.5

%)

(1)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 7.4% in the second quarter of 2021 compared to the second quarter of 2020. See page 12 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 six months ended June 30, 2021.

Equity Residential

Second Quarter 2021 vs. First Quarter 2021

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Quarter

 

Markets/Metro Areas

 

Apartment

Units

 

 

Q2 2021

% of

Actual

NOI

 

 

Q2 2021

Average

Rental

Rate

 

 

Q2 2021

Weighted

Average

Physical

Occupancy %

 

 

Q2 2021

Turnover

 

 

Revenues

 

 

Expenses

 

 

NOI

 

 

Average

Rental

Rate

 

 

Physical

Occupancy

 

 

Turnover

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

16,193

 

 

 

20.3

%

 

$

2,400

 

 

 

96.5

%

 

 

10.6

%

 

 

0.5

%

 

 

(3.6

%)

 

 

2.7

%

 

 

(0.2

%)

 

 

0.7

%

 

 

0.5

%

Orange County

 

 

4,028

 

 

 

5.5

%

 

 

2,255

 

 

 

97.9

%

 

 

8.3

%

 

 

3.2

%

 

 

(3.4

%)

 

 

5.4

%

 

 

2.3

%

 

 

0.9

%

 

 

0.5

%

San Diego

 

 

2,706

 

 

 

3.9

%

 

 

2,408

 

 

 

98.2

%

 

 

10.1

%

 

 

2.4

%

 

 

(2.0

%)

 

 

3.8

%

 

 

1.3

%

 

 

1.0

%

 

 

(0.4

%)

Subtotal – Southern California

 

 

22,927

 

 

 

29.7

%

 

 

2,375

 

 

 

96.9

%

 

 

10.1

%

 

 

1.2

%

 

 

(3.5

%)

 

 

3.3

%

 

 

0.4

%

 

 

0.8

%

 

 

0.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

12,707

 

 

 

19.1

%

 

 

2,825

 

 

 

95.3

%

 

 

11.4

%

 

 

(1.1

%)

 

 

(4.4

%)

 

 

0.4

%

 

 

(2.7

%)

 

 

1.5

%

 

 

0.0

%

Washington DC

 

 

14,569

 

 

 

17.7

%

 

 

2,316

 

 

 

96.3

%

 

 

12.0

%

 

 

0.0

%

 

 

(5.0

%)

 

 

2.6

%

 

 

(0.4

%)

 

 

0.4

%

 

 

2.3

%

New York

 

 

9,343

 

 

 

11.5

%

 

 

3,405

 

 

 

95.2

%

 

 

10.1

%

 

 

1.4

%

 

 

(5.3

%)

 

 

10.0

%

 

 

(2.8

%)

 

 

3.9

%

 

 

1.8

%

Seattle

 

 

9,331

 

 

 

10.7

%

 

 

2,207

 

 

 

95.6

%

 

 

13.7

%

 

 

(1.7

%)

 

 

(1.9

%)

 

 

(1.6

%)

 

 

(1.8

%)

 

 

0.0

%

 

 

2.5

%

Boston

 

 

6,430

 

 

 

9.5

%

 

 

2,826

 

 

 

96.0

%

 

 

11.8

%

 

 

(0.2

%)

 

 

(6.6

%)

 

 

3.0

%

 

 

(0.9

%)

 

 

0.7

%

 

 

2.9

%

Denver

 

 

1,624

 

 

 

1.8

%

 

 

2,015

 

 

 

97.0

%

 

 

15.3

%

 

 

2.4

%

 

 

(12.9

%)

 

 

9.8

%

 

 

1.5

%

 

 

0.9

%

 

 

3.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

76,931

 

 

 

100.0

%

 

$

2,571

 

 

 

96.1

%

 

 

11.4

%

 

 

0.2

%

(1)

 

(4.6

%)

 

 

2.9

%

 

 

(1.0

%)

 

 

1.1

%

 

 

1.4

%

(1)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 2.0% in the second quarter of 2021 compared to the first quarter of 2021. See page 12 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 six months ended June 30, 2021.

Equity Residential

June YTD 2021 vs. June YTD 2020

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Year

 

Markets/Metro Areas

 

Apartment

Units

 

 

June YTD 21

% of

Actual

NOI

 

 

June YTD 21

Average

Rental

Rate

 

 

June YTD 21

Weighted

Average

Physical

Occupancy %

 

 

June YTD 21

Turnover

 

 

Revenues

 

 

Expenses

 

 

NOI

 

 

Average

Rental

Rate

 

 

Physical

Occupancy

 

 

Turnover

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

16,193

 

 

 

20.4

%

 

$

2,402

 

 

 

96.1

%

 

 

20.7

%

 

 

(6.5

%)

 

 

1.8

%

 

 

(10.2

%)

 

 

(7.3

%)

 

 

0.7

%

 

 

(2.4

%)

Orange County

 

 

4,028

 

 

 

5.5

%

 

 

2,230

 

 

 

97.4

%

 

 

16.1

%

 

 

(1.0

%)

 

 

3.1

%

 

 

(2.2

%)

 

 

(1.8

%)

 

 

0.8

%

 

 

(2.7

%)

San Diego

 

 

2,706

 

 

 

3.9

%

 

 

2,392

 

 

 

97.7

%

 

 

20.5

%

 

 

1.5

%

 

 

1.7

%

 

 

1.5

%

 

 

0.5

%

 

 

1.0

%

 

 

(1.2

%)

Subtotal – Southern California

 

 

22,927

 

 

 

29.8

%

 

 

2,370

 

 

 

96.5

%

 

 

19.9

%

 

 

(4.7

%)

 

 

1.9

%

 

 

(7.4

%)

 

 

(5.5

%)

 

 

0.8

%

 

 

(2.3

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

12,707

 

 

 

19.4

%

 

 

2,864

 

 

 

94.6

%

 

 

22.8

%

 

 

(15.1

%)

 

 

4.3

%

 

 

(21.6

%)

 

 

(14.0

%)

 

 

(1.2

%)

 

 

1.4

%

Washington DC

 

 

14,569

 

 

 

17.8

%

 

 

2,320

 

 

 

96.1

%

 

 

21.6

%

 

 

(5.1

%)

 

 

3.5

%

 

 

(8.9

%)

 

 

(5.5

%)

 

 

0.3

%

 

 

1.7

%

New York

 

 

9,343

 

 

 

11.2

%

 

 

3,453

 

 

 

93.2

%

 

 

18.4

%

 

 

(15.1

%)

 

 

4.0

%

 

 

(30.4

%)

 

 

(13.2

%)

 

 

(2.1

%)

 

 

(0.6

%)

Seattle

 

 

8,819

 

 

 

10.5

%

 

 

2,244

 

 

 

95.7

%

 

 

24.7

%

 

 

(10.3

%)

 

 

4.4

%

 

 

(16.0

%)

 

 

(9.8

%)

 

 

(0.5

%)

 

 

1.8

%

Boston

 

 

6,346

 

 

 

9.5

%

 

 

2,839

 

 

 

95.6

%

 

 

20.6

%

 

 

(9.7

%)

 

 

5.0

%

 

 

(15.5

%)

 

 

(10.7

%)

 

 

0.9

%

 

 

(2.1

%)

Denver

 

 

1,624

 

 

 

1.8

%

 

 

2,000

 

 

 

96.6

%

 

 

27.5

%

 

 

(0.6

%)

 

 

5.3

%

 

 

(3.0

%)

 

 

(2.5

%)

 

 

1.8

%

 

 

(4.0

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

76,335

 

 

 

100.0

%

 

$

2,588

 

 

 

95.5

%

 

 

21.3

%

 

 

(9.5

%)

(1)

 

3.6

%

 

 

(15.4

%)

 

 

(9.4

%)

 

 

(0.1

%)

 

 

(0.3

%)

 

 

(1)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 9.4% in the six months ended June 30, 2021 compared to the six months ended June 30, 2020. See page 12 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 six months ended June 30, 2021.

Equity Residential

Same Store Residential Net Effective Lease Pricing Statistics

For 76,335 Same Store Apartment Units

 

 

New Lease Change (1)

 

 

Renewal Rate Achieved (1)

 

 

Blended Rate (1)

 

Markets/Metro Areas

 

Q2 2021

 

 

Q1 2021