Company Announcements

Equity Residential Reports Third Quarter 2021 Results

Full Year Guidance Ranges Raised as Strong Recovery Continues Across Portfolio

CHICAGO--(BUSINESS WIRE)--Oct. 26, 2021-- Equity Residential (NYSE: EQR) today reported results for the quarter and nine months ended September 30, 2021 and has posted a Q3 2021 Management Presentation to its website as referenced below.

Third Quarter 2021 Results

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended September 30,

 

 

 

 

 

2021

 

 

2020

 

 

$ Change

 

 

% Change

 

 

 

Earnings Per Share (EPS)

 

$

1.15

 

 

$

0.24

 

 

$

0.91

 

 

 

379.2

%

 

 

Funds from Operations (FFO) per share

 

$

0.76

 

 

$

0.76

 

 

$

 

 

––

 

 

 

Normalized FFO per share

 

$

0.77

 

 

$

0.77

 

 

$

 

 

––

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

 

 

2021

 

 

2020

 

 

$ Change

 

 

% Change

 

 

 

Earnings Per Share (EPS)

 

$

2.14

 

 

$

1.77

 

 

$

0.37

 

 

 

20.9

%

 

 

Funds from Operations (FFO) per share

 

$

2.21

 

 

$

2.48

 

 

$

(0.27

)

 

 

(10.9

%)

 

 

Normalized FFO per share

 

$

2.17

 

 

$

2.49

 

 

$

(0.32

)

 

 

(12.9

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Our third quarter results and upward guidance revisions reflect the continued rapid recovery in our business. For the first time since the pandemic began, we achieved positive quarter over quarter total same store revenue growth,” said Mark J. Parrell, Equity Residential’s President and CEO. “With continued strong demand and growing incomes for our resident demographic, we believe that we are well positioned to deliver same store revenue results in 2022 that will be among the best in our Company’s history.”

Highlights

  • The Company reported positive total same store revenue growth for the third quarter of 2021 compared to the same period of 2020 driven by strong Physical Occupancy, continued improvement in pricing power, an increase in Non-Residential revenues and the governmental rental assistance described below. This is the first time the Company has reported positive quarter over quarter revenue growth since the beginning of the pandemic. The Company also raised its annual guidance for same store revenues and NOI, as well as EPS, FFO per share and Normalized FFO per share.
  • Similar to prior quarters, the Company collected approximately 97% of its expected Residential revenues in the third quarter of 2021. Additionally, the Company received governmental rental assistance payments paid on behalf of residents of approximately $13.4 million and $18.3 million during the third quarter of 2021 and nine months ended September 30, 2021, respectively.
  • During the third quarter of 2021, the Company acquired eight operating properties, consisting of 2,108 apartment units, for an aggregate purchase price of approximately $740.2 million and a weighted average Acquisition Cap Rate of 3.9%. The acquisitions include properties in Austin and Dallas/Ft. Worth, TX, marking the Company’s re-entry into these markets, as well as Atlanta, GA, a market that the Company reentered earlier this year.
  • During the third quarter of 2021, the Company sold five California operating properties, consisting of 1,047 apartment units, for an aggregate sales price of approximately $612.3 million and a weighted average Disposition Yield of 3.9%.
  • In August 2021, the Company entered into a strategic partnership with Toll Brothers, Inc. (NYSE: TOL) to develop apartment communities in key Equity Residential markets.
  • The Company recently published its 2021 Environmental, Social and Governance (ESG) report highlighting Equity Residential’s ESG goals and accomplishments.

Results Per Share

The change in EPS for the quarter ended September 30, 2021 compared to the same period of 2020 is due primarily to higher property sale gains in the third 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 nine months ended September 30, 2021 compared to the same period of 2020 is due primarily to higher property sale gains in the first nine 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 nine months ended September 30, 2021 compared to the same periods 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

 

 

 

Third Quarter 2021 vs.
Third Quarter 2020

 

 

September YTD 2021 vs.
September YTD 2020

 

Residential same store Net Operating Income (NOI)

 

$

(0.05

)

 

$

(0.39

)

Non-Residential same store NOI

 

 

0.04

 

 

 

0.05

 

2021 and 2020 transaction activity impact on NOI, net

 

(0.01

)

 

 

(0.06

)

Interest expense, net

 

 

0.03

 

 

 

0.12

 

Other items, including corporate overhead (1)

 

 

(0.01

)

 

 

(0.04

)

Net

 

$

 

 

$

(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 nine months ended September 30, 2021. The table below reflects same store Residential only results.

 

 

Third Quarter 2021 vs.
Third Quarter 2020

 

 

Third Quarter 2021 vs.
Second Quarter 2021

 

 

September YTD 2021 vs.
September YTD 2020

 

Apartment Units

 

75,509

 

 

75,884

 

 

75,288

 

Physical Occupancy

 

96.6% vs. 94.7%

 

 

96.6% vs. 96.1%

 

 

95.9% vs. 95.3%

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

(2.5%)

 

 

3.5%

 

 

(7.3%)

 

Expenses

 

2.1%

 

 

4.0%

 

 

3.1%

 

NOI

 

(4.8%)

 

 

3.3%

 

 

(12.1%)

 

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.

 

 

Third Quarter 2021 vs.
Third Quarter 2020

 

 

Third Quarter 2021 vs.
Second Quarter 2021

 

 

September YTD 2021 vs.
September YTD 2020

 

 

 

% Change

 

 

% Change

 

 

% Change

 

Same Store Residential Revenues-

comparable period

 

 

 

 

 

 

 

 

Lease rates (1)

 

(4.9

%)

 

1.2

%

 

(6.4

%)

Leasing Concessions

 

(1.1

%)

 

0.4

%

 

(1.5

%)

Vacancy gain (loss)

 

2.2

%

 

0.2

%

 

0.9

%

Bad Debt, Net (2)

 

1.9

%

 

1.4

%

 

(0.1

%)

Other (3)

 

(0.6

%)

 

0.3

%

 

(0.2

%)

Same Store Residential Revenues-

 

 

 

current period

(2.5

%)

 

3.5

%

 

(7.3

%)

(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)

Change in rental income due to bad debt write-offs and reserves, net of amounts (including governmental rental assistance payments) 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:

 

 

Q2 2021

 

 

Q3 2021

 

 

October 2021 (1)

 

Physical Occupancy (2)

 

96.3%

 

 

96.7%

 

 

96.9%

 

Percentage of Residents Renewing by quarter/month

53.4%

 

 

58.5%

 

 

64.0%

 

 

 

 

 

 

 

 

 

 

 

New Lease Change

 

(5.4%)

 

 

10.1%

 

 

11.1%

 

Renewal Rate Achieved

 

0.2%

 

 

5.6%

 

 

9.0%

 

Blended Rate

 

(2.8%)

 

 

7.6%

 

 

9.8%

 

 

(1)

October 2021 results are preliminary.

(2)

Physical Occupancy is as of month-end June for Q2 2021, month-end September for Q3 2021 and as of October 21st for October 2021.

Investment Activity

“During the quarter, we were pleased to add high quality, well located assets to the portfolio in both our expansion markets and the suburbs of our established markets and to fund these acquisitions with the sales proceeds from older California assets. These acquisitions included re-entering both the Dallas/Ft. Worth and Austin markets,” said Mr. Parrell. “We also had a very active quarter on the development front with the announcement of our new strategic partnership with Toll Brothers to build apartment communities in several of our markets. In addition, we continue to harness our internal development capabilities to deliver high quality assets to the portfolio as we did in the third quarter with the completion of one project and the start of three new projects.”

The Company acquired eight properties, consisting of 2,108 apartment units, during the third quarter of 2021 for an aggregate purchase price of approximately $740.2 million and a weighted average Acquisition Capitalization Rate of 3.9%. The properties are located in Austin, TX (2), Dallas/Ft. Worth, TX (2), Atlanta, GA (2), suburban Seattle, WA and suburban Boston, MA. During the first nine months of 2021, the Company has acquired 11 properties, consisting of 2,921 apartment units, for an aggregate purchase price of approximately $1.02 billion and a weighted average Acquisition Capitalization Rate of 3.9%.

The Company sold five properties during the third quarter of 2021, consisting of 1,047 apartment units, for an aggregate sale price of approximately $612.3 million and a weighted average Disposition Yield of 3.9%, generating an Unlevered IRR of 9.5%. Three of the properties are located in suburban San Francisco, CA and two in Los Angeles, CA. During the first nine months of 2021, the Company sold ten properties, consisting of 1,842 apartment units, for an aggregate sale price of approximately $1.02 billion and a weighted average Disposition Yield of 3.8%, generating an Unlevered IRR of 9.2%.

In August 2021, the Company announced a strategic partnership with Toll Brothers, Inc. to develop apartment communities in key Equity Residential markets. The Company expects that the first developments under this partnership will commence construction sometime over the next few months. In addition to this partnership, during the third quarter of 2021, the Company acquired a land parcel located in Denver, CO and another in suburban New York, NY, in unconsolidated joint ventures for an aggregate gross purchase price of approximately $55.4 million and commenced construction on both projects. The Company’s total investment in these two separate joint ventures is approximately $24.9 million as of September 30, 2021. The Company also commenced construction on an additional joint venture apartment property in Washington, D.C., and completed the development of The Edge, a 154 apartment unit property in Bethesda, MD.

Capital Markets Activity

On August 9, 2021, the Company closed on its second ever green bond offering with the issuance of $500.0 million at its lowest ever coupon rate for 10-year unsecured notes of 1.85% and an all-in effective yield of 2.0%. Net proceeds from this issuance will be allocated to investments in green buildings and/or renewable energy, energy efficiency and sustainable water management projects.

During the third quarter of 2021, the Company entered into forward equity sales agreements under its At-The-Market (ATM) share offering program for approximately 1.7 million common shares at an initial weighted average forward price per share of $83.25, which is subject to certain adjustments at settlement. The common shares sold under the forward equity sales agreements must settle by the end of the first quarter in 2023.

Fourth Quarter 2021 Guidance

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

 

 

Q4 2021
Guidance

EPS

 

$1.02 to $1.04

FFO per share

 

$0.77 to $0.79

Normalized FFO per share

 

$0.78 to $0.80

The difference between the third quarter 2021 actual EPS of $1.15 and the fourth quarter of 2021 EPS guidance midpoint of $1.03 is due primarily to lower expected property sale gains, partially offset by higher expected same store NOI.

The difference between the third quarter 2021 actual FFO of $0.76 per share and the fourth quarter of 2021 FFO guidance midpoint of $0.78 per share is due primarily to higher expected same store NOI.

The difference between the third quarter 2021 actual Normalized FFO of $0.77 per share and the fourth quarter of 2021 Normalized FFO guidance midpoint of $0.79 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

 

96.0%

 

95.3% to 96.3%

Revenue change

 

(3.7%)

 

(5.0%) to (4.0%)

Expense change

 

3.25%

 

2.75% to 3.25%

NOI change

 

(7.0%)

 

(8.5%) to (7.5%)

 

 

 

 

 

EPS

 

$3.16 to $3.18

 

$3.03 to $3.13

FFO per share

 

$2.98 to $3.00

 

$2.89 to $2.99

Normalized FFO per share

 

$2.95 to $2.97

 

$2.85 to $2.95

The change in the full year 2021 EPS guidance range is due primarily to higher expected property sale gains and same store NOI, partially offset by higher expected depreciation expense.

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. As of October 25, 2021, Equity Residential owns or has investments in 307 properties consisting of 79,322 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, Dallas/Ft. Worth 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, October 27, 2021 at 12:00 p.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)

 

 

 

Nine Months Ended September 30,

 

 

Quarter Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

1,818,867

 

 

$

1,958,270

 

 

$

623,206

 

 

$

622,433

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and maintenance

 

 

341,261

 

 

 

333,333

 

 

 

116,461

 

 

 

113,065

 

Real estate taxes and insurance

 

 

297,780

 

 

 

288,043

 

 

 

96,909

 

 

 

95,273

 

Property management

 

 

74,357

 

 

 

71,513

 

 

 

23,772

 

 

 

20,196

 

General and administrative

 

 

43,102

 

 

 

37,212

 

 

 

13,041

 

 

 

10,859

 

Depreciation

 

 

616,032

 

 

 

619,003

 

 

 

215,397

 

 

 

200,605

 

Total expenses

 

 

1,372,532

 

 

 

1,349,104

 

 

 

465,580

 

 

 

439,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain (loss) on sales of real estate properties

 

 

587,623

 

 

 

352,218

 

 

 

363,928

 

 

 

(25

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

1,033,958

 

 

 

961,384

 

 

 

521,554

 

 

 

182,410

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

 

25,293

 

 

 

4,006

 

 

 

973

 

 

 

535

 

Other expenses

 

 

(10,908

)

 

 

(8,324

)

 

 

(3,456

)

 

 

(4,097

)

Interest:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense incurred, net

 

 

(202,733

)

 

 

(248,349

)

 

 

(68,251

)

 

 

(80,874

)

Amortization of deferred financing costs

 

 

(6,172

)

 

 

(6,253

)

 

 

(2,048

)

 

 

(2,101

)

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

investments in unconsolidated entities and net gain (loss)

on sales of land parcels

 

 

839,438

 

 

 

702,464

 

 

 

448,772

 

 

 

95,873

 

Income and other tax (expense) benefit

 

 

(679

)

 

 

(502

)

 

 

(284

)

 

 

(262

)

Income (loss) from investments in unconsolidated entities

 

 

(3,028

)

 

 

(2,445

)

 

 

(1,156

)

 

 

(246

)

Net gain (loss) on sales of land parcels

 

 

5

 

 

 

 

 

 

 

 

 

 

Net income

 

 

835,736

 

 

 

699,517

 

 

 

447,332

 

 

 

95,365

 

Net (income) loss attributable to Noncontrolling Interests:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Partnership

 

 

(27,903

)

 

 

(24,624

)

 

 

(14,847

)

 

 

(3,376

)

Partially Owned Properties

 

 

(1,957

)

 

 

(14,113

)

 

 

(534

)

 

 

(703

)

Net income attributable to controlling interests

 

 

805,876

 

 

 

660,780

 

 

 

431,951

 

 

 

91,286

 

Preferred distributions

 

 

(2,318

)

 

 

(2,318

)

 

 

(773

)

 

 

(773

)

Net income available to Common Shares

 

$

803,558

 

 

$

658,462

 

 

$

431,178

 

 

$

90,513

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

2.15

 

 

$

1.77

 

 

$

1.15

 

 

$

0.24

 

Weighted average Common Shares outstanding

 

 

373,474

 

 

 

371,749

 

 

 

374,308

 

 

 

371,869

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

2.14

 

 

$

1.77

 

 

$

1.15

 

 

$

0.24

 

Weighted average Common Shares outstanding

 

 

387,642

 

 

 

385,973

 

 

 

388,374

 

 

 

385,652

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions declared per Common Share outstanding

 

$

1.8075

 

 

$

1.8075

 

 

$

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)

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

Quarter Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net income

 

$

835,736

 

 

$

699,517

 

 

$

447,332

 

 

$

95,365

 

Net (income) loss attributable to Noncontrolling Interests – Partially

Owned Properties

 

 

(1,957

)

 

 

(14,113

)

 

 

(534

)

 

 

(703

)

Preferred distributions

 

 

(2,318

)

 

 

(2,318

)

 

 

(773

)

 

 

(773

)

Net income available to Common Shares and Units

 

 

831,461

 

 

 

683,086

 

 

 

446,025

 

 

 

93,889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

616,032

 

 

 

619,003

 

 

 

215,397

 

 

 

200,605

 

Depreciation – Non-real estate additions

 

 

(3,228

)

 

 

(3,433

)

 

 

(1,052

)

 

 

(1,126

)

Depreciation – Partially Owned Properties

 

 

(2,676

)

 

 

(2,514

)

 

 

(994

)

 

 

(828

)

Depreciation – Unconsolidated Properties

 

 

1,867

 

 

 

1,838

 

 

 

634

 

 

 

614

 

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

assets

 

 

(4

)

 

 

(1,000

)

 

 

 

 

 

(1,000

)

Net (gain) loss on sales of real estate properties

 

 

(587,623

)

 

 

(352,218

)

 

 

(363,928

)

 

 

25

 

Noncontrolling Interests share of gain (loss) on sales

of real estate properties

 

 

 

 

 

11,655

 

 

 

 

 

 

 

FFO available to Common Shares and Units

 

 

855,829

 

 

 

956,417

 

 

 

296,082

 

 

 

292,179

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments (see note for additional detail):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment – non-operating assets

 

 

 

 

 

 

 

 

 

 

 

 

Write-off of pursuit costs

 

 

3,557

 

 

 

4,864

 

 

 

910

 

 

 

1,586

 

Debt extinguishment and preferred share redemption (gains)

losses

 

 

264

 

 

 

37

 

 

 

 

 

 

5

 

Non-operating asset (gains) losses

 

 

(23,014

)

 

 

1,022

 

 

 

294

 

 

 

352

 

Other miscellaneous items

 

 

4,520

 

 

 

(514

)

 

 

1,179

 

 

 

1,796

 

Normalized FFO available to Common Shares and Units

 

$

841,156

 

 

$

961,826

 

 

$

298,465

 

 

$

295,918

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

$

858,147

 

 

$

958,735

 

 

$

296,855

 

 

$

292,952

 

Preferred distributions

 

 

(2,318

)

 

 

(2,318

)

 

 

(773

)

 

 

(773

)

FFO available to Common Shares and Units

 

$

855,829

 

 

$

956,417

 

 

$

296,082

 

 

$

292,179

 

FFO per share and Unit – basic

 

$

2.22

 

 

$

2.49

 

 

$

0.77

 

 

$

0.76

 

FFO per share and Unit – diluted

 

$

2.21

 

 

$

2.48

 

 

$

0.76

 

 

$

0.76

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Normalized FFO

 

$

843,474

 

 

$

964,144

 

 

$

299,238

 

 

$

296,691

 

Preferred distributions

 

 

(2,318

)

 

 

(2,318

)

 

 

(773

)

 

 

(773

)

Normalized FFO available to Common Shares and Units

 

$

841,156

 

 

$

961,826

 

 

$

298,465

 

 

$

295,918

 

Normalized FFO per share and Unit – basic

 

$

2.18

 

 

$

2.50

 

 

$

0.77

 

 

$

0.77

 

Normalized FFO per share and Unit – diluted

 

$

2.17

 

 

$

2.49

 

 

$

0.77

 

 

$

0.77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average Common Shares and Units outstanding – basic

 

 

385,841

 

 

 

384,759

 

 

 

386,327

 

 

 

384,871

 

Weighted average Common Shares and Units outstanding – diluted

 

 

387,642

 

 

 

385,973

 

 

 

388,374

 

 

 

385,652

 

 

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)

 

 

 

 

 

 

 

 

 

September 30,

 

 

December 31,

 

 

 

2021

 

 

2020

 

ASSETS

 

 

 

 

 

 

 

 

Land

 

$

5,779,686

 

 

$

5,785,367

 

Depreciable property

 

 

21,840,344

 

 

 

20,920,654

 

Projects under development

 

 

163,659

 

 

 

411,134

 

Land held for development

 

 

82,026

 

 

 

86,170

 

Investment in real estate

 

 

27,865,715

 

 

 

27,203,325

 

Accumulated depreciation

 

 

(8,260,846

)

 

 

(7,859,657

)

Investment in real estate, net

 

 

19,604,869

 

 

 

19,343,668

 

Investments in unconsolidated entities

 

 

79,429

 

 

 

52,782

 

Cash and cash equivalents

 

 

39,707

 

 

 

42,591

 

Restricted deposits

 

 

187,042

 

 

 

57,137

 

Right-of-use assets

 

 

477,693

 

 

 

499,287

 

Other assets

 

 

274,275

 

 

 

291,426

 

Total assets

 

$

20,663,015

 

 

$

20,286,891

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Mortgage notes payable, net

 

$

2,281,165

 

 

$

2,293,890

 

Notes, net

 

 

5,833,483

 

 

 

5,335,536

 

Line of credit and commercial paper

 

 

30,000

 

 

 

414,830

 

Accounts payable and accrued expenses

 

 

166,522

 

 

 

107,366

 

Accrued interest payable

 

 

56,777

 

 

 

65,896

 

Lease liabilities

 

 

313,361

 

 

 

329,130

 

Other liabilities

 

 

350,201

 

 

 

345,064

 

Security deposits

 

 

64,617

 

 

 

60,480

 

Distributions payable

 

 

233,306

 

 

 

232,262

 

Total liabilities

 

 

9,329,432

 

 

 

9,184,454

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable Noncontrolling Interests – Operating Partnership

 

 

459,933

 

 

 

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 September 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; 375,002,588 shares issued

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

shares issued and outstanding as of December 31, 2020

 

 

3,750

 

 

 

3,723

 

Paid in capital

 

 

9,131,078

 

 

 

9,128,599

 

Retained earnings

 

 

1,527,115

 

 

 

1,399,715

 

Accumulated other comprehensive income (loss)

 

 

(36,666

)

 

 

(43,666

)

Total shareholders’ equity

 

 

10,662,557

 

 

 

10,525,651

 

Noncontrolling Interests:

 

 

 

 

 

 

 

 

Operating Partnership

 

 

208,955

 

 

 

233,162

 

Partially Owned Properties

 

 

2,138

 

 

 

4,673

 

Total Noncontrolling Interests

 

 

211,093

 

 

 

237,835

 

Total equity

 

 

10,873,650

 

 

 

10,763,486

 

Total liabilities and equity

 

$

20,663,015

 

 

$

20,286,891

 

Equity Residential

Portfolio Summary

As of September 30, 2021

 

 

 

 

 

 

 

 

 

 

% of
Stabilized

 

 

Average

 

 

 

 

 

 

 

Apartment

 

 

Budgeted

 

 

Rental

 

Markets/Metro Areas

 

Properties

 

 

Units

 

 

NOI

 

 

Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Established Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

67

 

 

 

15,739

 

 

 

20.0

%

 

$

2,526

 

Orange County

 

 

13

 

 

 

4,028

 

 

 

5.4

%

 

 

2,383

 

San Diego

 

 

11

 

 

 

2,706

 

 

 

3.8

%

 

 

2,554

 

Subtotal – Southern California

 

 

91

 

 

 

22,473

 

 

 

29.2

%

 

 

2,504

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Washington DC

 

 

49

 

 

 

15,098

 

 

 

17.6

%

 

 

2,345

 

San Francisco

 

 

46

 

 

 

12,314

 

 

 

17.6

%

 

 

2,908

 

Seattle

 

 

46

 

 

 

9,525

 

 

 

11.5

%

 

 

2,253

 

New York

 

 

36

 

 

 

9,343

 

 

 

11.0

%

 

 

3,482

 

Boston

 

 

26

 

 

 

6,700

 

 

 

9.8

%

 

 

2,867

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expansion Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denver

 

 

6

 

 

 

1,904

 

 

 

1.9

%

 

 

2,077

 

Atlanta

 

 

3

 

 

 

985

 

 

 

0.9

%

 

 

1,979

 

Dallas/Ft. Worth

 

 

2

 

 

 

489

 

 

 

0.3

%

 

 

1,931

 

Austin

 

 

2

 

 

 

491

 

 

 

0.2

%

 

 

1,406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

307

 

 

 

79,322

 

 

 

100.0

%

 

$

2,625

 

 

 

Properties

 

 

Apartment Units

 

 

 

 

 

 

 

 

Wholly Owned Properties

 

290

 

 

75,548

 

Master-Leased Properties – Consolidated (1)

 

 

 

 

Partially Owned Properties – Consolidated

 

17

 

 

3,774

 

 

 

 

 

 

 

 

 

 

307

 

 

79,322

 

 

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

(1)

Effective July 31, 2021, the Company took over management of its last remaining third-party master-leased property containing 162 apartment units located in Arlington, VA and the property is now included in the Wholly Owned Properties count.

Equity Residential

Portfolio Rollforward Q3 2021

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Properties

 

 

Apartment
Units

 

 

Purchase
Price

 

 

Acquisition
Cap Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6/30/2021

 

 

303

 

 

 

78,107

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties

 

 

 

 

6

 

 

 

1,595

 

 

$

499,725

 

 

 

3.9

%

Consolidated Rental Properties – Not Stabilized (A)

 

 

2

 

 

 

513

 

 

$

240,500

 

 

 

4.1

%

Unconsolidated Land Parcels (B)

 

 

 

 

 

 

 

 

 

$

55,409

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Price

 

 

Disposition
Yield

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dispositions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties

 

 

 

 

(5

)

 

 

(1,047

)

 

$

(612,300

)

 

 

(3.9

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completed Developments – Consolidated

 

 

 

 

1

 

 

 

154

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9/30/2021

 

 

307

 

 

 

79,322

 

 

 

 

 

 

 

 

 

Portfolio Rollforward 2021

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Properties

 

 

Apartment
Units

 

 

Purchase
Price

 

 

Acquisition
Cap Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12/31/2020

 

 

304

 

 

 

77,889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties

 

 

 

 

8

 

 

 

2,128

 

 

$

684,725

 

 

 

3.9

%

Consolidated Rental Properties – Not Stabilized (A)

 

 

3

 

 

 

793

 

 

$

335,700

 

 

 

4.1

%

Unconsolidated Land Parcels (B)

 

 

 

 

 

 

 

 

 

$

55,409

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Price

 

 

Disposition
Yield

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dispositions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties

 

 

 

 

(10

)

 

 

(1,842

)

 

$

(1,021,800

)

 

 

(3.8

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completed Developments – Consolidated

 

 

 

 

2

 

 

 

354

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9/30/2021

 

 

307

 

 

 

79,322

 

 

 

 

 

 

 

 

 

(A)

The Company acquired three properties during the nine months ended September 30, 2021, including a property in each of the Atlanta and Seattle markets in the third quarter of 2021, that are in lease-up and are expected to stabilize in their second year of ownership at the combined Acquisition Cap Rates listed above.

(B)

The Company entered into separate unconsolidated joint ventures for the purpose of developing vacant land parcels in Denver, CO and suburban New York, NY. The purchase price listed represents the total consideration for the closing of the respective joint ventures. The Company’s total investment in these two joint ventures is approximately $24.9 million as of September 30, 2021. See Development and Lease-Up Projects for additional detail.

Equity Residential

Third Quarter 2021 vs. Third Quarter 2020

Same Store Results/Statistics Including 75,509 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

 

 

 

 

 

 

 

Third Quarter 2021

 

 

Third Quarter 2020

 

 

 

Residential

 

 

% Change

 

 

Non-
Residential

 

 

% Change

 

 

Total

 

 

% Change

 

 

 

 

Residential

 

 

Non-
Residential

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

579,336

 

(1)

(2.5%)

 

 

$

22,516

 

(2)

268.3%

 

 

$

601,852

 

 

0.3%

 

 

Revenues

 

$

594,138

 

 

$

6,114

 

 

$

600,252

 

Expenses

 

$

200,652

 

 

2.1%

 

 

$

5,931

 

 

5.0%

 

 

$

206,583

 

 

2.2%

 

 

Expenses

 

$

196,514

 

 

$

5,650

 

 

$

202,164

 

NOI

 

$

378,684

 

 

(4.8%)

 

 

$

16,585

 

 

3,474.4%

 

 

$

395,269

 

 

(0.7%)

 

 

NOI

 

$

397,624

 

 

$

464

 

 

$

398,088

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

 

$

2,649

 

 

(4.4%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

$

2,770

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

96.6

%

 

1.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

94.7

%

 

 

 

 

 

 

 

 

Turnover

 

13.7

%

 

(4.2%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Turnover

 

17.9

%

 

 

 

 

 

 

 

 

Third Quarter 2021 vs. Second Quarter 2021

Same Store Results/Statistics Including 75,884 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

 

 

 

 

 

Third Quarter 2021

 

 

Second Quarter 2021

 

 

 

Residential

 

 

% Change

 

 

Non-
Residential

 

 

% Change

 

 

Total

 

 

% Change

 

 

 

 

Residential

 

 

Non-
Residential

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

581,352

 

(1)

3.5%

 

 

$

22,548

 

(2)

6.8%

 

 

$

603,900

 

 

3.7%

 

 

Revenues

 

$

561,446

 

 

$

21,122

 

 

$

582,568

 

Expenses

 

$

201,243

 

 

4.0%

 

 

$

5,932

 

 

(2.3%)

 

 

$

207,175

 

 

3.8%

 

 

Expenses

 

$

193,565

 

 

$

6,071

 

 

$

199,636

 

NOI

 

$

380,109

 

 

3.3%

 

 

$

16,616

 

 

10.4%

 

 

$

396,725

 

 

3.6%

 

 

NOI

 

$

367,881

 

 

$

15,051

 

 

$

382,932

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

 

$

2,645

 

 

3.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

$

2,568

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

96.6

%

 

0.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

96.1

%

 

 

 

 

 

 

 

 

Turnover

 

13.7

%

 

2.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Turnover

 

11.4

%

 

 

 

 

 

 

 

 

September YTD 2021 vs. September YTD 2020

Same Store Results/Statistics Including 75,288 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

 

 

 

 

 

September YTD 2021

 

 

September YTD 2020

 

 

 

Residential

 

 

% Change

 

 

Non-
Residential

 

 

% Change

 

 

Total

 

 

% Change

 

 

 

 

Residential

 

 

Non-
Residential

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,692,955

 

(1)

(7.3%)

 

 

$

65,221

 

(2)

48.7%

 

 

$

1,758,176

 

 

(6.0%)

 

 

Revenues

 

$

1,826,344

 

 

$

43,855

 

 

$

1,870,199

 

Expenses

 

$

594,688

 

 

3.1%

 

 

$

18,017

 

 

8.4%

 

 

$

612,705

 

 

3.2%

 

 

Expenses

 

$

576,884

 

 

$

16,618

 

 

$

593,502

 

NOI

 

$

1,098,267

 

 

(12.1%)

 

 

$

47,204

 

 

73.3%

 

 

$

1,145,471

 

 

(10.3%)

 

 

NOI

 

$

1,249,460

 

 

$

27,237

 

 

$

1,276,697

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

$

2,607

 

 

(7.8%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

$

2,829

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

95.9

%

 

0.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

95.3

%

 

 

 

 

 

 

 

 

Turnover

 

35.0

%

 

(4.4%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Turnover

 

39.4

%

 

 

 

 

 

 

 

 

(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:

  • Third Quarter 2021 vs. Third Quarter 2020 – Primarily impacted by the write-off of Non-Residential straight-line lease receivables in the third quarter of 2020 and lower bad debt in the third quarter of 2021.
  • Third Quarter 2021 vs. Second Quarter 2021 – Primarily lower bad debt in the third quarter of 2021.
  • September YTD 2021 vs. September YTD 2020 – Primarily impacted by the write-off of Non-Residential straight-line lease receivables in the third quarter of 2020 and lower bad debt in 2021.

Equity Residential

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

$ in thousands

 

 

 

 

 

 

 

 

 

 

Third Quarter 2021 vs. Third Quarter 2020

 

 

Third Quarter 2021 vs. Second Quarter 2021

 

 

Sept. YTD 2021 vs. Sept. YTD 2020

 

 

75,509 Same Store Apartment Units

 

 

75,884 Same Store Apartment Units

 

 

75,288 Same Store Apartment Units

 

 

Q3 2021

 

 

Q3 2020

 

 

Q3 2021

 

 

Q2 2021

 

 

Sept. YTD 2021

 

 

Sept. YTD 2020

 

Same Store Residential Revenues (GAAP Basis)

$

579,336

 

 

$

594,138

 

 

$

581,352

 

 

$

561,446

 

 

$

1,692,955

 

 

$

1,826,344

 

Leasing Concessions amortized

 

10,896

 

 

 

4,255

 

 

 

10,979

 

 

 

13,166

 

 

 

35,463

 

 

 

6,864

 

Leasing Concessions granted (2)

 

(2,164

)

 

 

(12,020

)

 

 

(2,193

)

 

 

(8,298

)

 

 

(27,312

)

 

 

(16,547

)

Same Store Residential Revenues with Leasing

Concessions on a cash basis

$

588,068

 

 

$

586,373

 

 

$

590,138

 

 

$

566,314

 

 

$

1,701,106

 

 

$

1,816,661

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% change - GAAP revenue

 

(2.5

%)

 

 

 

 

 

 

3.5

%

 

 

 

 

 

 

(7.3

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% change - cash revenue

 

0.3

%

 

 

 

 

 

 

4.2

%

 

 

 

 

 

 

(6.4

%)

 

 

 

 

(1)

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

(2)

Monthly Residential Leasing Concessions granted continue to decline. Residential Leasing Concessions granted in September and October (preliminary) 2021 are $0.2 million and less than $50,000, respectively, which are down from their peak of $6.1 million per month in February 2021 and have returned to pre-pandemic levels.

Same Store Resident/Tenant Accounts Receivable Balances

Including 75,288 Same Store Apartment Units

$ in thousands

 

 

 

 

 

 

 

 

 

Residential

 

 

Non-Residential

 

Balance Sheet (Other assets):

 

September 30, 2021

 

 

June 30, 2021

 

 

September 30, 2021

 

 

June 30, 2021

 

Resident/tenant accounts receivable balances

$

42,770

 

 

$

43,286

 

 

$

4,064

 

 

$

6,035

 

Allowance for doubtful accounts

 

(37,295

)

 

 

(38,376

)

 

 

(3,442

)

 

 

(5,232

)

Net receivable balances

$

5,475

 

(1)

$

4,910

 

 

$

622

 

 

$

803

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line receivable balances

 

$

11,488

 

(2)

$

20,186

 

 

$

12,698

 

 

$

12,777

 

(1)

The Company held same store Residential security deposits approximating 46.1% of the net receivable balance at September 30, 2021.

(2)

Total same store Residential Leasing Concessions granted in the third quarter of 2021 were approximately $2.2 million. The straight-line receivable balance of $11.5 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 three quarters of 2022.

Same Store Residential Bad Debt

Including 75,288 Same Store Apartment Units

$ in thousands

Income Statement (Rental income):

 

Q3 2021

 

 

Q2 2021

 

 

Q3 2020

 

Bad Debt, Net (1)

 

$

4,122

 

 

$

12,177

 

 

$

15,608

 

% of Same Store Residential Revenues

 

 

0.7

%

 

 

2.2

%

 

 

2.6

%

(1)

Bad Debt, Net in Q3 2021 benefited from additional resident payments due to governmental rental assistance programs.

Equity Residential

Third Quarter 2021 vs. Third Quarter 2020

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Year's Quarter

 

Markets/Metro Areas

 

Apartment
Units

 

 

Q3 2021
% of
Actual
NOI

 

 

Q3 2021
Average
Rental
Rate

 

 

Q3 2021
Weighted
Average
Physical
Occupancy %

 

 

Q3 2021
Turnover

 

 

Revenues

 

 

Expenses

 

 

NOI

 

 

Average
Rental
Rate

 

 

Physical
Occupancy

 

 

Turnover

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

15,739

 

 

 

21.0

%

 

$

2,526

 

 

 

97.3

%

 

 

11.7

%

 

 

4.1

%

 

 

0.3

%

 

 

5.9

%

 

 

2.7

%

 

 

1.3

%

 

 

(3.5

%)

Orange County

 

 

4,028

 

 

 

5.7

%

 

 

2,383

 

 

 

98.1

%

 

 

11.0

%

 

 

7.7

%

 

 

0.4

%

 

 

10.1

%

 

 

6.2

%

 

 

1.3

%

 

 

(4.9

%)

San Diego

 

 

2,706

 

 

 

4.1

%

 

 

2,554

 

 

 

97.8

%

 

 

14.0

%

 

 

8.8

%

 

 

1.8

%

 

 

11.2

%

 

 

8.0

%

 

 

0.7

%

 

 

(2.0

%)

Subtotal – Southern California

 

 

22,473

 

 

 

30.8

%

 

 

2,504

 

 

 

97.5

%

 

 

11.8

%

 

 

5.3

%

 

 

0.5

%

 

 

7.4

%

 

 

3.9

%

 

 

1.2

%

 

 

(3.6

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

12,114

 

 

 

18.3

%

 

 

2,898

 

 

 

95.4

%

 

 

14.1

%

 

 

(9.0

%)

 

 

1.9

%

 

 

(13.2

%)

 

 

(10.0

%)

 

 

1.0

%

 

 

(4.8

%)

Washington DC

 

 

14,569

 

 

 

17.1

%

 

 

2,335

 

 

 

96.6

%

 

 

14.8

%

 

 

(3.6

%)

 

 

4.6

%

 

 

(7.4

%)

 

 

(4.6

%)

 

 

1.0

%

 

 

(2.8

%)

New York

 

 

9,343

 

 

 

12.3

%

 

 

3,482

 

 

 

96.8

%

 

 

12.2

%

 

 

(4.0

%)

 

 

0.6

%

 

 

(8.3

%)

 

 

(9.6

%)

 

 

5.7

%

 

 

(8.3

%)

Seattle

 

 

8,956

 

 

 

10.3

%

 

 

2,261

 

 

 

96.2

%

 

 

14.3

%

 

 

(5.9

%)

 

 

6.1

%

 

 

(10.8

%)

 

 

(7.4

%)

 

 

1.6

%

 

 

(3.2

%)

Boston

 

 

6,430

 

 

 

9.4

%

 

 

2,881

 

 

 

95.8

%

 

 

17.0

%

 

 

(4.1

%)

 

 

2.3

%

 

 

(7.0

%)

 

 

(6.4

%)

 

 

2.3

%

 

 

(3.7

%)

Denver

 

 

1,624

 

 

 

1.8

%

 

 

2,091

 

 

 

96.9

%

 

 

18.4

%

 

 

4.5

%

 

 

1.8

%

 

 

5.7

%

 

 

2.5

%

 

 

1.8

%

 

 

(4.3

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

75,509

 

 

 

100.0

%

 

$

2,649

 

 

 

96.6

%

 

 

13.7

%

 

 

(2.5

%)

(1)

 

2.1

%

 

 

(4.8

%)

 

 

(4.4

%)

 

 

1.9

%

 

 

(4.2

%)

(1)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 0.3% in the third quarter of 2021 compared to the third 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 nine months ended September 30, 2021.

Equity Residential

Third Quarter 2021 vs. Second Quarter 2021

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Quarter

 

Markets/Metro Areas

 

Apartment
Units

 

 

Q3 2021
% of
Actual
NOI

 

 

Q3 2021
Average
Rental
Rate

 

 

Q3 2021
Weighted
Average
Physical
Occupancy %

 

 

Q3 2021
Turnover

 

 

Revenues

 

 

Expenses

 

 

NOI

 

 

Average
Rental
Rate

 

 

Physical
Occupancy

 

 

Turnover

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

15,739

 

 

 

20.9

%

 

$

2,526

 

 

 

97.3

%

 

 

11.7

%

 

 

6.6

%

 

 

2.8

%

 

 

8.4

%

 

 

5.7

%

 

 

0.8

%

 

 

1.2

%

Orange County

 

 

4,028

 

 

 

5.7

%

 

 

2,383

 

 

 

98.1

%

 

 

11.0

%

 

 

6.0

%

 

 

5.9

%

 

 

6.0

%

 

 

5.7

%

 

 

0.2

%

 

 

2.7

%

San Diego

 

 

2,706

 

 

 

4.1

%

 

 

2,554

 

 

 

97.8

%

 

 

14.0

%

 

 

5.7

%

 

 

4.2

%

 

 

6.2

%

 

 

6.1

%

 

 

(0.4

%)

 

 

3.9

%

Subtotal – Southern California

 

 

22,473

 

 

 

30.7

%

 

 

2,504

 

 

 

97.5

%

 

 

11.8

%

 

 

6.4

%

 

 

3.3

%

 

 

7.7

%

 

 

5.7

%

 

 

0.6

%

 

 

1.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

12,114

 

 

 

18.2

%

 

 

2,898

 

 

 

95.4

%

 

 

14.1

%

 

 

2.7

%

 

 

3.4

%

 

 

2.4

%

 

 

2.6

%

 

 

0.1

%

 

 

2.7

%

Washington DC

 

 

14,569

 

 

 

17.0

%

 

 

2,335

 

 

 

96.6

%

 

 

14.8

%

 

 

1.2

%

 

 

8.8

%

 

 

(2.4

%)

 

 

0.8

%

 

 

0.3

%

 

 

2.8

%

New York

 

 

9,343

 

 

 

12.2

%

 

 

3,482

 

 

 

96.8

%

 

 

12.2

%

 

 

4.0

%

 

 

0.6

%

 

 

7.7

%

 

 

2.3

%

 

 

1.6

%

 

 

2.1

%

Seattle

 

 

9,331

 

 

 

10.7

%

 

 

2,246

 

 

 

96.1

%

 

 

14.4

%

 

 

2.3

%

 

 

3.9

%

 

 

1.5

%

 

 

1.8

%

 

 

0.5

%

 

 

0.7

%

Boston

 

 

6,430

 

 

 

9.4

%

 

 

2,881

 

 

 

95.8

%

 

 

17.0

%

 

 

1.7

%

 

 

6.4

%

 

 

(0.4

%)

 

 

1.9

%

 

 

(0.2

%)

 

 

5.2

%

Denver

 

 

1,624

 

 

 

1.8

%

 

 

2,091

 

 

 

96.9

%

 

 

18.4

%

 

 

3.8

%

 

 

11.1

%

 

 

0.9

%

 

 

3.8

%

 

 

(0.1

%)

 

 

3.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

75,884

 

 

 

100.0

%

 

$

2,645

 

 

 

96.6

%

 

 

13.7

%

 

 

3.5

%

(1)

 

4.0

%

 

 

3.3

%

 

 

3.0

%

 

 

0.5

%

 

 

2.3

%

(1)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 4.2% in the third quarter of 2021 compared to the second 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 nine months ended September 30, 2021.

Equity Residential

September YTD 2021 vs. September YTD 2020

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Year

 

Markets/Metro Areas

 

Apartment
Units

 

 

Sept. YTD 21
% of
Actual
NOI

 

 

Sept. YTD 21
Average
Rental
Rate

 

 

Sept. YTD 21
Weighted
Average
Physical
Occupancy %

 

 

Sept. YTD 21
Turnover

 

 

Revenues

 

 

Expenses

 

 

NOI

 

 

Average
Rental
Rate

 

 

Physical
Occupancy

 

 

Turnover

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

15,739

 

 

 

20.4

%

 

$

2,439

 

 

 

96.5

%

 

 

32.2

%

 

 

(3.2

%)

 

 

1.3

%

 

 

(5.2

%)

 

 

(4.1

%)

 

 

0.9

%

 

 

(6.1

%)

Orange County

 

 

4,028

 

 

 

5.6

%

 

 

2,281

 

 

 

97.7

%

 

 

27.2

%

 

 

1.9

%

 

 

2.1

%

 

 

1.8

%

 

 

0.9

%

 

 

1.1

%

 

 

(7.5

%)

San Diego

 

 

2,706

 

 

 

4.1

%

 

 

2,446

 

 

 

97.7

%

 

 

34.5

%

 

 

3.9

%

 

 

1.7

%

 

 

4.7

%

 

 

3.0

%

 

 

0.9

%

 

 

(3.1

%)

Subtotal – Southern California

 

 

22,473

 

 

 

30.1

%

 

 

2,411

 

 

 

96.9

%

 

 

31.6

%

 

 

(1.5

%)