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Equity Residential Reports Third Quarter 2024 Results

Equity Residential (NYSE: EQR) today reported results for the quarter and nine months ended September 30, 2024 and has posted a Q3 2024 Management Presentation to its website as referenced below.

Third Quarter 2024 Results

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended September 30,

 

 

 

 

 

2024

 

2023

 

$ Change

 

% Change

 

 

Earnings Per Share (EPS)

 

$

0.38

 

 

$

0.45

 

 

$

(0.07

)

 

 

(15.6

%)

 

 

Funds from Operations (FFO) per share

 

$

0.99

 

 

$

0.96

 

 

$

0.03

 

 

 

3.1

%

 

 

Normalized FFO (NFFO) per share

 

$

0.98

 

 

$

0.96

 

 

$

0.02

 

 

 

2.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

 

 

2024

 

2023

 

$ Change

 

% Change

 

 

Earnings Per Share (EPS)

 

$

1.62

 

 

$

1.38

 

 

$

0.24

 

 

 

17.4

%

 

 

Funds from Operations (FFO) per share

 

$

2.79

 

 

$

2.74

 

 

$

0.05

 

 

 

1.8

%

 

 

Normalized FFO (NFFO) per share

 

$

2.89

 

 

$

2.78

 

 

$

0.11

 

 

 

4.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recent Highlights

  • During the third quarter of 2024, the Company acquired fourteen properties, consisting of 4,418 apartment units, for an aggregate acquisition price of approximately $1.26 billion at a weighted average Acquisition Cap Rate of 5.1%. These assets are located in the Company’s Expansion Markets of Atlanta, Dallas/Ft. Worth and Denver.
  • In September of 2024, the Company issued $600.0 million of unsecured 10-year notes at a coupon rate of 4.65%, the lowest 10-year coupon rate issued by a REIT since 2022, and an all-in effective yield of 4.9%. Proceeds from this issuance were used to partially fund the acquisitions described above.
  • Same store revenue increased 2.7% for the third quarter of 2024 compared to the third quarter of 2023, driven by good demand and modest supply across most of the Company’s markets. Same store expense increased 3.2% with low growth in the primary expense categories. Same store Net Operating Income (NOI) increased 2.5%.
  • The Company published its 11th annual Corporate Responsibility report highlighting Equity Residential’s goals and accomplishments.

“We delivered solid same store revenue results in the quarter with the underlying drivers mostly in line with expectations. Our business continues to benefit from high employment levels among our well earning resident base, wage growth across the economy and limited home ownership and rental options in most of our markets, making our well-located apartment properties an appealing choice," said Mark J. Parrell, Equity Residential’s President and CEO. “Looking ahead, we continue to be excited about the prospects for our business as lower levels of competitive new supply in future years, especially in our Established Markets on the coasts, along with a positive forward employment picture for our higher earning customer, positions us well to continue to grow cash flows.”

Results Per Share

The change in EPS for the quarter ended September 30, 2024 compared to the same period of 2023 is due primarily to lower property sale gains, higher depreciation expense, the various adjustment items listed on page 27 of this release and the items described below. The change in EPS for the nine months ended September 30, 2024 compared to the same period of 2023 is due primarily to higher property sale gains, higher depreciation expense, the various adjustment items listed on page 27 of this release and the items described below.

The per share changes in FFO for the quarter and nine months ended September 30, 2024 compared to the same periods of 2023 are due primarily to the various adjustment items listed on page 27 of this release and the items described below.

The per share changes in Normalized FFO are due primarily to:

 

Positive/(Negative) Impact

 

 

Third Quarter 2024 vs.

Third Quarter 2023

 

 

September YTD 2024 vs.

September YTD 2023

 

Same store NOI

$

0.03

 

 

$

0.13

 

Lease-Up NOI

 

 

 

0.01

 

2024 and 2023 transaction activity impact on NOI, net

 

0.01

 

 

 

(0.02

)

Interest expense, net

 

(0.01

)

 

 

(0.01

)

Corporate overhead (1)

 

(0.01

)

 

 

(0.02

)

Other items

 

 

 

0.02

 

Net

$

0.02

 

 

$

0.11

 

(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 29 through 34 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 7, 31 and 32 of this release.

Same Store Results

The following table shows the total same store results for the periods presented (includes Residential and Non-Residential).

 

 

Third Quarter 2024 vs.

Third Quarter 2023

 

Third Quarter 2024 vs.

Second Quarter 2024

 

September YTD 2024 vs.

September YTD 2023

Apartment Units

 

77,203

 

78,633

 

76,916

Physical Occupancy

 

96.1% vs. 96.0%

 

96.1% vs. 96.3%

 

96.3% vs. 95.9%

 

 

 

 

 

 

 

Revenues

 

2.7%

 

0.5%

 

3.2%

Expenses

 

3.2%

 

2.3%

 

2.3%

NOI

 

2.5%

 

(0.4%)

 

3.7%

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.

 

Third Quarter 2024 vs.

Third Quarter 2023

 

Third Quarter 2024 vs.

Second Quarter 2024

 

September YTD 2024 vs.

September YTD 2023

 

% Change

 

% Change

 

% Change

Same Store Residential Revenues-

 

 

 

 

 

 

 

 

comparable period

Lease rates

2.0

%

 

0.9

%

 

2.5

%

Leasing Concessions

(0.1

%)

 

0.0

%

 

(0.2

%)

Vacancy gain (loss)

0.2

%

 

(0.4

%)

 

0.3

%

Bad Debt, Net (1)

0.2

%

 

0.1

%

 

0.2

%

Other (2)

0.2

%

 

0.0

%

 

0.3

%

Same Store Residential Revenues-

 

current period

2.5

%

 

0.6

%

 

3.1

%

(1)

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. See page 13 for more detail.

(2)

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

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.

Residential Same Store Operating Statistics

The following table includes select operating metrics for Residential Same Store Properties (for 76,916 same store apartment units):

 

Q3 2024

 

Q2 2024

Physical Occupancy

96.1%

 

96.4%

Percentage of Residents Renewing by quarter

56.7%

 

57.7%

 

 

 

 

New Lease Change

(1.2%)

 

0.2%

Renewal Rate Achieved

4.6%

 

5.0%

Blended Rate (1)

2.0%

 

2.9%

(1)

Blended Rates for Established Markets were 2.4% and 3.3% for Q3 2024 and Q2 2024, respectively. See page 17.

In the third quarter of 2024, Physical Occupancy and Percentage of Residents Renewing exceeded expectations while Renewal Rate Achieved remained strong. In September 2024, New Lease Change, a volatile metric, seasonally decelerated more quickly than anticipated, primarily due to weakness in the city of Los Angeles and in our Expansion Markets, leading to Blended Rates at the low end of the Company's expected range for the third quarter of 2024. Blended Rate has normalized with typical seasonal patterns thus far in the fourth quarter of 2024 and is expected to be between 0.75% and 1.25% for the fourth quarter of 2024.

Investment Activity

During the third quarter of 2024, the Company acquired 14 properties consisting of 4,418 apartment units, located in the Company’s Expansion Markets of Atlanta, Dallas/Ft. Worth and Denver, for an aggregate acquisition price of approximately $1.26 billion at a weighted average Acquisition Cap Rate of 5.1%. The acquired properties are seven years old on average. Subsequent to the end of the third quarter of 2024, the Company acquired a two year old, 274 apartment unit property in suburban Atlanta for a purchase price of $89.5 million. During the third quarter of 2024, the Company sold a 63 year old property, located in Washington, D.C., consisting of 138 apartment units, for a sale price of approximately $31.5 million at a Disposition Yield of 6.1%.

During the first nine months of 2024, the Company acquired 15 properties, consisting of 4,578 apartment units, for an aggregate purchase price of approximately $1.3 billion at a weighted average Acquisition Cap Rate of 5.1%. The acquired properties are six years old on average. Also during the first nine months of 2024, the Company sold six properties consisting of 969 apartment units, for an aggregate sale price of approximately $365.5 million at a weighted average Disposition Yield of 5.7%. The properties sold during 2024 have an average age of 43 years.

As of September 30, 2024, the Company has 42 properties (including those under development) located in its Expansion Markets of Atlanta, Austin, Dallas/Ft. Worth and Denver, which constitutes approximately 10% of total portfolio NOI.

“We are seeing an increasingly active transaction market providing us with opportunities to acquire properties in our Expansion Markets at attractive prices relative to replacement costs and at reasonable cap rates on depressed rent rolls as we execute on our strategy to better balance our portfolio,” said Alec Brackenridge, Equity Residential's Executive Vice President and Chief Investment Officer. “We are continuing to build a portfolio in the metro areas on the coasts and in select markets in the sunbelt that are most desirable to our target affluent renter demographic and have favorable long-term return characteristics.”

Capital Markets Activity

On September 11, 2024, the Company closed on the issuance of $600.0 million of 10-year unsecured notes at a coupon rate of 4.65%, which is the lowest 10-year coupon rate issued by a REIT since 2022, and an all-in effective yield of 4.9%. Proceeds from the offering were used to partially fund the Company’s acquisition activity during the quarter.

Fourth Quarter 2024 Guidance

The Company has established guidance ranges for the fourth quarter of 2024 EPS, FFO per share and Normalized FFO per share as listed below:

 

 

Q4 2024

Guidance

EPS

 

$1.01 to $1.05

FFO per share

 

$0.95 to $0.99

Normalized FFO per share

 

$0.98 to $1.02

The difference between the third quarter of 2024 actual EPS of $0.38 and the fourth quarter of 2024 EPS guidance midpoint of $1.03 is due primarily to higher expected property sale gains, higher expected depreciation expense, lower expected non-operating asset gains and the items described below.

The difference between the third quarter of 2024 actual FFO of $0.99 per share and the fourth quarter of 2024 FFO guidance midpoint of $0.97 per share is due primarily to lower expected non-operating asset gains and the items described below.

The difference between the third quarter of 2024 actual Normalized FFO of $0.98 per share and the fourth quarter of 2024 Normalized FFO guidance midpoint of $1.00 per share is due primarily to:

 

 

Expected

Positive/(Negative)

Impact

 

 

 

Fourth Quarter 2024 vs.

Third Quarter 2024

 

Same store NOI

 

$

0.01

 

2024 and 2023 transaction activity impact on NOI, net

 

 

0.02

 

Interest expense, net

 

 

(0.02

)

Corporate overhead

 

 

0.01

 

Net

 

$

0.02

 

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 affluent long-term renters. Equity Residential owns or has investments in 312 properties consisting of 84,018 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, government regulations and competition. These and other risks and uncertainties are described under the heading “Risk Factors” in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityapartments.com. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

A live web cast of the Company’s conference call discussing these results will take place tomorrow, Thursday, October 31, 2024 at 10:30 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 webcast link.

Equity Residential

Consolidated Statements of Operations

(Amounts in thousands except per share data)

(Unaudited)

 

 

 

Nine Months Ended September 30,

 

Quarter Ended September 30,

 

 

2024

 

2023

 

2024

 

2023

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

2,213,329

 

 

$

2,146,464

 

 

$

748,348

 

 

$

724,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

Property and maintenance

 

 

396,349

 

 

 

391,437

 

 

 

135,221

 

 

 

129,087

 

Real estate taxes and insurance

 

 

320,452

 

 

 

312,607

 

 

 

105,954

 

 

 

102,858

 

Property management

 

 

100,381

 

 

 

90,314

 

 

 

31,412

 

 

 

28,169

 

General and administrative

 

 

48,902

 

 

 

49,135

 

 

 

14,551

 

 

 

14,094

 

Depreciation

 

 

688,041

 

 

 

661,921

 

 

 

237,948

 

 

 

224,736

 

Total expenses

 

 

1,554,125

 

 

 

1,505,414

 

 

 

525,086

 

 

 

498,944

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain (loss) on sales of real estate properties

 

 

227,829

 

 

 

127,034

 

 

 

(165

)

 

 

26,912

 

Interest and other income

 

 

26,501

 

 

 

11,296

 

 

 

15,844

 

 

 

7,627

 

Other expenses

 

 

(59,094

)

 

 

(20,517

)

 

 

(13,971

)

 

 

(4,958

)

Interest:

 

 

 

 

 

 

 

 

 

 

 

 

Expense incurred, net

 

 

(205,762

)

 

 

(200,882

)

 

 

(72,722

)

 

 

(68,891

)

Amortization of deferred financing costs

 

 

(5,784

)

 

 

(7,023

)

 

 

(1,948

)

 

 

(3,027

)

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

investments in unconsolidated entities and net gain (loss)

on sales of land parcels

 

 

642,894

 

 

 

550,958

 

 

 

150,300

 

 

 

182,786

 

Income and other tax (expense) benefit

 

 

(925

)

 

 

(892

)

 

 

(290

)

 

 

(258

)

Income (loss) from investments in unconsolidated entities

 

 

(4,865

)

 

 

(3,847

)

 

 

(1,493

)

 

 

(1,242

)

Net income

 

 

637,104

 

 

 

546,219

 

 

 

148,517

 

 

 

181,286

 

Net (income) loss attributable to Noncontrolling Interests:

 

 

 

 

 

 

 

 

 

 

 

 

Operating Partnership

 

 

(17,290

)

 

 

(17,174

)

 

 

(4,012

)

 

 

(5,561

)

Partially Owned Properties

 

 

(3,098

)

 

 

(5,299

)

 

 

(1,059

)

 

 

(3,217

)

Net income attributable to controlling interests

 

 

616,716

 

 

 

523,746

 

 

 

143,446

 

 

 

172,508

 

Preferred distributions

 

 

(1,258

)

 

 

(2,318

)

 

 

(356

)

 

 

(773

)

Premium on redemption of Preferred Shares

 

 

(1,444

)

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

614,014

 

 

$

521,428

 

 

$

143,090

 

 

$

171,735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – basic:

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

1.62

 

 

$

1.38

 

 

$

0.38

 

 

$

0.45

 

Weighted average Common Shares outstanding

 

 

378,718

 

 

 

378,614

 

 

 

378,756

 

 

 

378,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

1.62

 

 

$

1.38

 

 

$

0.38

 

 

$

0.45

 

Weighted average Common Shares outstanding

 

 

390,688

 

 

 

391,135

 

 

 

391,026

 

 

 

391,351

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions declared per Common Share outstanding

 

$

2.025

 

 

$

1.9875

 

 

$

0.675

 

 

$

0.6625

 

Equity Residential

Consolidated Statements of Funds From Operations and Normalized Funds From Operations

(Amounts in thousands except per share and Unit data)

(Unaudited)

 

 

 

Nine Months Ended September 30,

 

Quarter Ended September 30,

 

 

2024

 

2023

 

2024

 

2023

Net income

 

$

637,104

 

 

$

546,219

 

 

$

148,517

 

 

$

181,286

 

Net (income) loss attributable to Noncontrolling Interests – Partially

Owned Properties

 

(3,098

)

 

 

(5,299

)

 

 

(1,059

)

 

 

(3,217

)

Preferred distributions

 

 

(1,258

)

 

 

(2,318

)

 

 

(356

)

 

 

(773

)

Premium on redemption of Preferred Shares

 

 

(1,444

)

 

 

 

 

 

 

 

 

 

Net income available to Common Shares and Units

 

 

631,304

 

 

 

538,602

 

 

 

147,102

 

 

 

177,296

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

688,041

 

 

 

661,921

 

 

 

237,948

 

 

 

224,736

 

Depreciation – Non-real estate additions

 

 

(2,839

)

 

 

(3,291

)

 

 

(942

)

 

 

(1,032

)

Depreciation – Partially Owned Properties

 

 

(1,645

)

 

 

(1,599

)

 

 

(556

)

 

 

(544

)

Depreciation – Unconsolidated Properties

 

 

3,881

 

 

 

1,921

 

 

 

2,429

 

 

 

695

 

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

 

 

(710

)

 

 

 

 

 

(710

)

 

 

 

Net (gain) loss on sales of real estate properties

 

 

(227,829

)

 

 

(127,034

)

 

 

165

 

 

 

(26,912

)

Noncontrolling Interests share of gain (loss) on sales

of real estate properties

 

 

 

 

 

2,336

 

 

 

 

 

 

2,336

 

FFO available to Common Shares and Units

 

 

1,090,203

 

 

 

1,072,856

 

 

 

385,436

 

 

 

376,575

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments (see note for additional detail):

 

 

 

 

 

 

 

 

 

 

 

 

Write-off of pursuit costs

 

 

1,905

 

 

 

2,739

 

 

 

536

 

 

 

746

 

Debt extinguishment and preferred share redemption (gains) losses

 

 

1,444

 

 

 

1,143

 

 

 

 

 

 

1,096

 

Non-operating asset (gains) losses

 

 

(17,452

)

 

 

(4,735

)

 

 

(14,236

)

 

 

(5,766

)

Other miscellaneous items

 

 

53,432

 

 

 

14,831

 

 

 

12,758

 

 

 

3,488

 

Normalized FFO available to Common Shares and Units

 

$

1,129,532

 

 

$

1,086,834

 

 

$

384,494

 

 

$

376,139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

$

1,092,905

 

 

$

1,075,174

 

 

$

385,792

 

 

$

377,348

 

Preferred distributions

 

 

(1,258

)

 

 

(2,318

)

 

 

(356

)

 

 

(773

)

Premium on redemption of Preferred Shares

 

 

(1,444

)

 

 

 

 

 

 

 

 

 

FFO available to Common Shares and Units

 

$

1,090,203

 

 

$

1,072,856

 

 

$

385,436

 

 

$

376,575

 

FFO per share and Unit – basic

 

$

2.80

 

 

$

2.75

 

 

$

0.99

 

 

$

0.97

 

FFO per share and Unit – diluted

 

$

2.79

 

 

$

2.74

 

 

$

0.99

 

 

$

0.96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Normalized FFO

 

$

1,130,790

 

 

$

1,089,152

 

 

$

384,850

 

 

$

376,912

 

Preferred distributions

 

 

(1,258

)

 

 

(2,318

)

 

 

(356

)

 

 

(773

)

Normalized FFO available to Common Shares and Units

 

$

1,129,532

 

 

$

1,086,834

 

 

$

384,494

 

 

$

376,139

 

Normalized FFO per share and Unit – basic

 

$

2.90

 

 

$

2.79

 

 

$

0.99

 

 

$

0.96

 

Normalized FFO per share and Unit – diluted

 

$

2.89

 

 

$

2.78

 

 

$

0.98

 

 

$

0.96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average Common Shares and Units outstanding – basic

 

389,379

 

 

 

389,991

 

 

 

389,379

 

 

 

390,087

 

Weighted average Common Shares and Units outstanding – diluted

 

390,688

 

 

 

391,135

 

 

 

391,026

 

 

 

391,351

 

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,

 

 

2024

 

2023

ASSETS

 

 

 

 

 

 

Land

 

$

5,675,037

 

 

$

5,581,876

 

Depreciable property

 

 

24,148,043

 

 

 

22,938,426

 

Projects under development

 

 

222,055

 

 

 

78,036

 

Land held for development

 

 

65,113

 

 

 

114,300

 

Investment in real estate

 

 

30,110,248

 

 

 

28,712,638

 

Accumulated depreciation

 

 

(10,386,783

)

 

 

(9,810,337

)

Investment in real estate, net

 

 

19,723,465

 

 

 

18,902,301

 

Investments in unconsolidated entities1

 

 

359,810

 

 

 

282,049

 

Cash and cash equivalents

 

 

28,610

 

 

 

50,743

 

Restricted deposits

 

 

97,949

 

 

 

89,252

 

Right-of-use assets

 

 

458,673

 

 

 

457,266

 

Other assets

 

 

257,314

 

 

 

252,953

 

Total assets

 

$

20,925,821

 

 

$

20,034,564

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Mortgage notes payable, net

 

$

1,633,414

 

 

$

1,632,902

 

Notes, net

 

 

5,945,670

 

 

 

5,348,417

 

Line of credit and commercial paper

 

 

786,561

 

 

 

409,131

 

Accounts payable and accrued expenses

 

 

165,787

 

 

 

87,377

 

Accrued interest payable

 

 

50,633

 

 

 

65,716

 

Lease liabilities

 

 

306,119

 

 

 

311,640

 

Other liabilities

 

 

294,543

 

 

 

272,596

 

Security deposits

 

 

74,350

 

 

 

69,178

 

Distributions payable

 

 

263,425

 

 

 

259,231

 

Total liabilities

 

 

9,520,502

 

 

 

8,456,188

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable Noncontrolling Interests – Operating Partnership

 

 

351,803

 

 

 

289,248

 

Equity:

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

Preferred Shares of beneficial interest, $0.01 par value;

100,000,000 shares authorized; 343,100 shares issued and

outstanding as of September 30, 2024 and 745,600 shares issued

and outstanding as of December 31, 2023

 

 

17,155

 

 

 

37,280

 

Common Shares of beneficial interest, $0.01 par value;

1,000,000,000 shares authorized; 379,354,738 shares issued

and outstanding as of September 30, 2024 and 379,291,417

shares issued and outstanding as of December 31, 2023

 

 

3,794

 

 

 

3,793

 

Paid in capital

 

 

9,584,539

 

 

 

9,601,866

 

Retained earnings

 

 

1,244,953

 

 

 

1,437,185

 

Accumulated other comprehensive income (loss)

 

 

3,534

 

 

 

5,704

 

Total shareholders’ equity

 

 

10,853,975

 

 

 

11,085,828

 

Noncontrolling Interests:

 

 

 

 

 

 

Operating Partnership

 

 

199,206

 

 

 

202,306

 

Partially Owned Properties

 

 

335

 

 

 

994

 

Total Noncontrolling Interests

 

 

199,541

 

 

 

203,300

 

Total equity

 

 

11,053,516

 

 

 

11,289,128

 

Total liabilities and equity

 

$

20,925,821

 

 

$

20,034,564

 

 

1 Includes $297.5 million and $220.2 million in unconsolidated projects (primarily development) as of September 30, 2024 and December 31, 2023, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects.

Equity Residential

Portfolio Summary

As of September 30, 2024

 

 

 

 

 

 

 

 

% of

Stabilized

 

Average

 

 

 

 

 

Apartment

 

Budgeted

 

Rental

Markets/Metro Areas

 

Properties

 

Units

 

NOI

 

Rate

Established Markets:

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

58

 

 

 

14,732

 

 

 

16.7

%

 

$

2,943

 

Orange County

 

 

12

 

 

 

3,718

 

 

 

4.9

%

 

 

2,937

 

San Diego

 

 

12

 

 

 

2,878

 

 

 

3.9

%

 

 

3,127

 

Subtotal – Southern California

 

 

82

 

 

 

21,328

 

 

 

25.5

%

 

 

2,967

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Washington, D.C.

 

 

46

 

 

 

14,728

 

 

 

15.6

%

 

 

2,761

 

San Francisco

 

 

41

 

 

 

11,410

 

 

 

14.6

%

 

 

3,343

 

New York

 

 

34

 

 

 

8,536

 

 

 

13.8

%

 

 

4,669

 

Boston

 

 

27

 

 

 

7,237

 

 

 

11.6

%

 

 

3,612

 

Seattle

 

 

44

 

 

 

9,267

 

 

 

10.1

%

 

 

2,636

 

Subtotal – Established Markets

 

 

274

 

 

 

72,506

 

 

 

91.2

%

 

 

3,209

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expansion Markets:

 

 

 

 

 

 

 

 

 

 

 

 

Denver

 

 

14

 

 

 

4,181

 

 

 

3.9

%

 

 

2,350

 

Atlanta

 

 

12

 

 

 

3,788

 

 

 

2.9

%

 

 

2,020

 

Dallas/Ft. Worth

 

 

9

 

 

 

2,802

 

 

 

1.6

%

 

 

1,903

 

Austin

 

 

3

 

 

 

741

 

 

 

0.4

%

 

 

1,780

 

Subtotal – Expansion Markets

 

 

38

 

 

 

11,512

 

 

 

8.8

%

 

 

2,096

 

Total

 

 

312

 

 

 

84,018

 

 

 

100.0

%

 

$

3,058

 

 

 

 

Properties

 

Apartment Units

Wholly Owned Properties

 

297

 

80,749

Partially Owned Properties – Consolidated

 

14

 

3,060

Partially Owned Properties – Unconsolidated

 

1

 

209

 

 

312

 

84,018

 

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

Equity Residential

Portfolio Rollforward Q3 2024

($ in thousands)

 

 

 

Properties

 

Apartment

Units

 

Purchase

Price

 

Acquisition

Cap Rate

6/30/2024

 

 

299

 

 

 

79,738

 

 

 

 

 

 

 

Acquisitions:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties

 

 

14

 

 

 

4,418

 

 

$

1,255,250

 

 

 

5.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Price

 

Disposition

Yield

Dispositions:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties

 

 

(1

)

 

 

(138

)

 

$

(31,500

)

 

 

(6.1

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

9/30/2024

 

 

312

 

 

 

84,018

 

 

 

 

 

 

 

Portfolio Rollforward 2024

($ in thousands)

 

 

 

Properties

 

Apartment

Units

 

Purchase

Price

 

Acquisition

Cap Rate

12/31/2023

 

 

302

 

 

 

80,191

 

 

 

 

 

 

 

Acquisitions:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties

 

 

14

 

 

 

4,418

 

 

$

1,255,250

 

 

 

5.1

%

Consolidated Rental Properties – Not Stabilized (1)

 

 

1

 

 

 

160

 

 

$

62,595

 

 

 

5.7

%

Unconsolidated Land Parcels (2)

 

 

 

 

 

 

 

$

33,394

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Price

 

Disposition

Yield

Dispositions:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties

 

 

(6

)

 

 

(969

)

 

$

(365,500

)

 

 

(5.7

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

Completed Developments – Unconsolidated

 

 

1

 

 

 

209

 

 

 

 

 

 

 

Configuration Changes

 

 

 

 

 

9

 

 

 

 

 

 

 

9/30/2024

 

 

312

 

 

 

84,018

 

 

 

 

 

 

 

(1)

The Company acquired one property in the Boston market during the nine months ended September 30, 2024 that is in lease-up and is expected to stabilize in its second year of ownership at the Acquisition Cap Rate listed above.

(2)

The Company previously entered into separate unconsolidated joint ventures for the purpose of developing vacant land parcels in suburban Boston, MA and suburban Seattle, WA. The joint ventures acquired their respective land parcels during the nine months ended September 30, 2024 for the total purchase price listed. The Company's total investment in these two joint ventures is approximately $69.0 million as of September 30, 2024. See Development and Lease-Up Projects for additional detail.

Equity Residential

Third Quarter 2024 vs. Third Quarter 2023

Same Store Results/Statistics Including 77,203 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands except for Average Rental Rate)

 

 

 

Results

 

Statistics

 

Description

 

Revenues

 

Expenses

 

NOI

 

Average

Rental

Rate

 

Physical

Occupancy

 

Turnover

Q3 2024

 

$

722,308

 

 

$

230,098

 

 

$

492,210

 

 

$

3,132

 

 

 

96.1

%

 

 

13.3

%

Q3 2023

 

$

703,370

 

 

$

223,047

 

 

$

480,323

 

 

$

3,060

 

 

 

96.0

%

 

 

13.8

%

Change

 

$

18,938

 

 

$

7,051

 

 

$

11,887

 

 

$

72

 

 

 

0.1

%

 

 

(0.5

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

 

 

2.7

%

 

 

3.2

%

 

 

2.5

%

 

 

2.4

%

 

 

 

 

 

 

 

Third Quarter 2024 vs. Second Quarter 2024

Same Store Results/Statistics Including 78,633 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands except for Average Rental Rate)

 

 

 

Results

 

Statistics

Description

 

Revenues

 

Expenses

 

NOI

 

Average

Rental

Rate

 

Physical

Occupancy

 

Turnover

Q3 2024

 

$

731,670

 

 

$

233,606

 

 

$

498,064

 

 

$

3,116

 

 

 

96.1

%

 

 

13.3

%

Q2 2024

 

$

728,288

 

 

$

228,344

 

 

$

499,944

 

 

$

3,091

 

 

 

96.3

%

 

 

11.7

%

Change

 

$

3,382

 

 

$

5,262

 

 

$

(1,880

)

 

$

25

 

 

 

(0.2

%)

 

 

1.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

 

 

0.5

%

 

 

2.3

%

 

 

(0.4

%)

 

 

0.8

%

 

 

 

 

 

 

 

September YTD 2024 vs. September YTD 2023

Same Store Results/Statistics Including 76,916 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands except for Average Rental Rate)

 

 

 

Results

 

Statistics

Description

 

Revenues

 

Expenses

 

NOI

 

Average

Rental

Rate

 

Physical

Occupancy

 

Turnover

September YTD 2024

 

$

2,151,275

 

 

$

684,342

 

 

$

1,466,933

 

 

$

3,108

 

 

 

96.3

%

 

 

33.5

%

September YTD 2023

 

$

2,083,707

 

 

$

668,633

 

 

$

1,415,074

 

 

$

3,025

 

 

 

95.9

%

 

 

34.6

%

Change

 

$

67,568

 

 

$

15,709

 

 

$

51,859

 

 

$

83

 

 

 

0.4

%

 

 

(1.1

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

 

 

3.2

%

 

 

2.3

%

 

 

3.7

%

 

 

2.7

%

 

 

 

 

 

 

Equity Residential

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

($ in thousands)

 

 

Third Quarter 2024 vs. Third Quarter 2023

 

Third Quarter 2024 vs. Second Quarter 2024

 

Sept. YTD 2024 vs. Sept. YTD 2023

 

77,203 Same Store Apartment Units

 

78,633 Same Store Apartment Units

 

76,916 Same Store Apartment Units

 

Q3 2024

 

Q3 2023

 

Q3 2024

 

Q2 2024

 

Sept. YTD 2024

 

Sept. YTD 2023

Same Store Residential Revenues (GAAP Basis)

$

696,686

 

 

$

679,652

 

 

$

706,030

 

 

$

701,912

 

 

$

2,069,756

 

 

$

2,007,129

 

Leasing Concessions amortized

 

4,903

 

 

 

4,065

 

 

 

5,277

 

 

 

5,326

 

 

 

14,859

 

 

 

9,997

 

Leasing Concessions granted (2)

 

(5,891

)

 

 

(5,387

)

 

 

(6,187

)

 

 

(4,070

)

 

 

(14,503

)

 

 

(13,538

)

Same Store Residential Revenues with Leasing

Concessions on a cash basis

$

695,698

 

 

$

678,330

 

 

$

705,120

 

 

$

703,168

 

 

$

2,070,112

 

 

$

2,003,588

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% change - GAAP revenue

 

2.5

%

 

 

 

 

 

0.6

%

 

 

 

 

 

3.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% change - cash revenue

 

2.6

%

 

 

 

 

 

0.3

%

 

 

 

 

 

3.3

%

 

 

 

(1)

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

(2)

Concession usage is primarily concentrated in San Francisco, Los Angeles, Seattle and the Expansion Markets. Material declines for the nine months ended September 30, 2024 in Leasing Concessions granted in Seattle and San Francisco have been offset by increases in Los Angeles and the Expansion Markets in the same period.

 

Same Store Net Operating Income By Quarter

Including 76,916 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands)

 

 

 

Q3 2024

 

Q2 2024

 

Q1 2024

 

Q4 2023

 

Q3 2023

Same store revenues

 

$

720,371

 

 

$

717,335

 

 

$

713,569

 

 

$

705,600

 

 

$

701,423

 

Same store expenses

 

 

229,559

 

 

 

224,220

 

 

 

230,563

 

 

 

216,667

 

 

 

222,586

 

Same store NOI

 

$

490,812

 

 

$

493,115

 

 

$

483,006

 

 

$

488,933

 

 

$

478,837

 

Equity Residential

Same Store Residential Accounts Receivable Balances

Including 76,916 Same Store Apartment Units

($ in thousands)

 

Balance Sheet (Other assets):

 

September 30, 2024

 

June 30, 2024

 

September 30, 2023

Residential accounts receivable balances

 

$

15,273

 

 

$

16,270

 

 

$

24,670

 

Allowance for doubtful accounts

 

 

(9,754

)

 

 

(11,147

)

 

 

(19,436

)

Net receivable balances

$

5,519

 

 

$

5,123

 

 

$

5,234

 

 

 

 

 

 

 

 

 

 

 

Straight-line receivable balances

 

$

8,075

 

(1)

$

7,088

 

 

$

7,824

 

(1)

Total same store Residential Leasing Concessions granted in the third quarter of 2024 were approximately $5.9 million. The straight-line receivable balance of $8.1 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in the remainder of 2024 and the first three quarters of 2025.

 

Same Store Residential Bad Debt

Including 76,916 Same Store Apartment Units

($ in thousands)

 

Income Statement (Rental income):

 

Q3 2024

 

Q2 2024

 

Q3 2023

Bad debts before governmental rental assistance

 

$

7,697

 

 

$

8,079

 

 

$

9,092

 

Governmental rental assistance received

 

(295

)

 

 

(426

)

 

 

(410

)

Bad Debt, Net

 

$

7,402

 

 

$

7,653

 

 

$

8,682

 

 

 

 

 

 

 

 

 

 

 

Bad Debt, Net as a % of Same Store Residential Revenues

 

1.1

%

 

 

1.1

%

 

 

1.3

%

Equity Residential

Third Quarter 2024 vs. Third Quarter 2023

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Year's Quarter

Markets/Metro Areas

 

Apartment

Units

 

Q3 2024

% of

Actual

NOI

 

Q3 2024

Average

Rental

Rate

 

Q3 2024

Weighted

Average

Physical

Occupancy %

 

Q3 2024

Turnover

 

Revenues

 

Expenses

 

NOI

 

Average

Rental

Rate

 

Physical

Occupancy

 

Turnover

Los Angeles

 

 

14,135

 

 

 

17.2

%

 

$

2,940

 

 

 

95.5

%

 

 

12.5

%

 

 

1.2

%

 

 

3.7

%

 

 

0.2

%

 

 

1.5

%

 

 

(0.2

%)

 

 

0.2

%

Orange County

 

 

3,718

 

 

 

5.1

%

 

 

2,937

 

 

 

96.1

%

 

 

10.7

%

 

 

2.7

%

 

 

6.7

%

 

 

1.5

%

 

 

3.3

%

 

 

(0.6

%)

 

 

(0.2

%)

San Diego

 

 

2,878

 

 

 

4.2

%

 

 

3,127

 

 

 

95.7

%

 

 

12.5

%

 

 

2.5

%

 

 

3.9

%

 

 

2.1

%

 

 

2.1

%

 

 

0.4

%

 

 

0.0

%

Subtotal – Southern California

 

20,731

 

 

 

26.5

%

 

 

2,965

 

 

 

95.6

%

 

 

12.1

%

 

 

1.7

%

 

 

4.1

%

 

 

0.7

%

 

 

1.9

%

 

 

(0.2

%)

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Washington, D.C.

 

 

14,416

 

 

 

16.4

%

 

 

2,764

 

 

 

96.6

%

 

 

14.1

%

 

 

4.2

%

 

 

7.8

%

 

 

2.5

%

 

 

4.4

%

 

 

(0.2

%)

 

 

(0.4

%)

San Francisco

 

 

11,188

 

 

 

15.8

%

 

 

3,347

 

 

 

95.8

%

 

 

12.7

%

 

 

1.2

%

 

 

1.6

%

 

 

1.0

%

 

 

0.9

%

 

 

0.2

%

 

 

(0.5

%)

New York

 

 

8,536

 

 

 

14.5

%

 

 

4,669

 

 

 

97.4

%

 

 

11.0

%

 

 

3.9

%

 

 

3.9

%

 

 

3.9

%

 

 

3.1

%

 

 

0.9

%

 

 

(1.7

%)

Boston

 

 

7,077

 

 

 

11.2

%

 

 

3,627

 

 

 

96.1

%

 

 

14.9

%

 

 

3.2

%

 

 

0.4

%

 

 

4.3

%

 

 

3.1

%

 

 

0.0

%

 

 

(1.0

%)

Seattle

 

 

9,266

 

 

 

10.4

%

 

 

2,635

 

 

 

96.1

%

 

 

13.8

%

 

 

3.3

%

 

 

4.9

%

 

 

2.6

%

 

 

2.4

%

 

 

0.9

%

 

 

(0.5

%)

Denver

 

 

2,792

 

 

 

2.8

%

 

 

2,403

 

 

 

95.8

%

 

 

17.8

%

 

 

(0.9

%)

 

 

2.0

%

 

 

(2.1

%)

 

 

0.0

%

 

 

(0.7

%)

 

 

(0.4

%)

Other Expansion Markets

 

 

3,197

 

 

 

2.4

%

 

 

1,931

 

 

 

95.1

%

 

 

16.4

%

 

 

(2.6

%)

 

 

(21.2

%)

(1)

 

11.5

%

 

 

(3.2

%)

 

 

0.5

%

 

 

(1.6

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

77,203

 

 

 

100.0

%

 

$

3,132

 

 

 

96.1

%

 

 

13.3

%

 

 

2.5

%

 

 

3.0

%

 

 

2.3

%

 

 

2.4

%

 

 

0.1

%

 

 

(0.5

%)

(1)

Expense decline primarily due to favorable Texas real estate taxes.

 

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.3% of total revenues for the nine months ended September 30, 2024.

Equity Residential

Third Quarter 2024 vs. Second Quarter 2024

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Quarter

Markets/Metro Areas

 

Apartment

Units

 

Q3 2024

% of

Actual

NOI

 

Q3 2024

Average

Rental

Rate

 

Q3 2024

Weighted

Average

Physical

Occupancy %

 

Q3 2024

Turnover

 

Revenues

 

Expenses

 

NOI

 

Average

Rental

Rate

 

Physical

Occupancy

 

Turnover

Los Angeles

 

 

14,135

 

 

 

17.0

%

 

$

2,940

 

 

 

95.5

%

 

 

12.5

%

 

 

0.0

%

 

 

5.3

%

 

 

(2.3

%)

 

 

0.2

%

 

 

(0.2

%)

 

 

0.8

%

Orange County

 

 

3,718

 

 

 

5.1

%

 

 

2,937

 

 

 

96.1

%

 

 

10.7

%

 

 

1.0

%

 

 

4.5

%

 

 

0.0

%

 

 

0.8

%

 

 

0.2

%

 

 

(0.1

%)

San Diego

 

 

2,878

 

 

 

4.1

%

 

 

3,127

 

 

 

95.7

%

 

 

12.5

%

 

 

(0.2

%)

 

 

4.7

%

 

 

(1.6

%)

 

 

0.0

%

 

 

(0.2

%)

 

 

0.9

%

Subtotal – Southern California

 

20,731

 

 

 

26.2

%

 

 

2,965

 

 

 

95.6

%

 

 

12.1

%

 

 

0.1

%

 

 

5.1

%

 

 

(1.7

%)

 

 

0.3

%

 

 

(0.2

%)

 

 

0.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Washington, D.C.

 

 

14,728

 

 

 

16.4

%

 

 

2,761

 

 

 

96.6

%

 

 

14.0

%

 

 

1.6

%

 

 

6.6

%

 

 

(0.7

%)

 

 

1.9

%

 

 

(0.3

%)

 

 

2.5

%

San Francisco

 

 

11,410

 

 

 

15.9

%

 

 

3,342

 

 

 

95.8

%

 

 

12.6

%

 

 

0.5

%

 

 

6.6

%

 

 

(2.0

%)

 

 

0.7

%

 

 

(0.3

%)

 

 

1.0

%

New York

 

 

8,536

 

 

 

14.3

%

 

 

4,669

 

 

 

97.4

%

 

 

11.0

%

 

 

1.3

%

 

 

0.1

%

 

 

2.1

%

 

 

1.3

%

 

 

0.0

%

 

 

1.5

%

Boston

 

 

7,077

 

 

 

11.1

%

 

 

3,627

 

 

 

96.1

%

 

 

14.9

%

 

 

(0.2

%)

 

 

0.2

%

 

 

(0.3

%)

 

 

0.5

%

 

 

(0.6

%)

 

 

3.5

%

Seattle

 

 

9,266

 

 

 

10.3

%

 

 

2,635

 

 

 

96.1

%

 

 

13.8

%

 

 

1.0

%

 

 

0.2

%

 

 

1.4

%

 

 

1.2

%

 

 

(0.2

%)

 

 

1.4

%

Denver

 

 

2,792

 

 

 

2.8

%

 

 

2,403

 

 

 

95.8

%

 

 

17.8

%

 

 

(1.5

%)

 

 

5.3

%

 

 

(4.3

%)

 

 

(0.6

%)

 

 

(1.0

%)

 

 

3.8

%

Other Expansion Markets

 

 

4,093

 

 

 

3.0

%

 

 

1,934

 

 

 

95.1

%

 

 

16.1

%

 

 

(1.2

%)

 

 

(19.8

%)

(1)

 

13.3

%

 

 

(1.4

%)

 

 

0.2

%

 

 

0.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

78,633

 

 

 

100.0

%

 

$

3,116

 

 

 

96.1

%

 

 

13.3

%

 

 

0.6

%

 

 

2.4

%

 

 

(0.3

%)

 

 

0.8

%

 

 

(0.2

%)

 

 

1.6

%

(1)

Expense decline primarily due to favorable Texas real estate taxes.

 

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.3% of total revenues for the nine months ended September 30, 2024.

Equity Residential

September YTD 2024 vs. September YTD 2023

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Year

Markets/Metro Areas

 

Apartment

Units

 

Sept. YTD 24

% of

Actual

NOI

 

Sept. YTD 24

Average

Rental

Rate

 

Sept. YTD 24

Weighted

Average

Physical

Occupancy %

 

Sept. YTD 24

Turnover

 

Revenues

 

Expenses

 

NOI

 

Average

Rental

Rate

 

Physical

Occupancy

 

Turnover

Los Angeles

 

 

14,135

 

 

 

17.5

%

 

$

2,932

 

 

 

95.6

%

 

 

33.7

%

 

 

3.2

%

 

 

2.2

%

 

 

3.7

%

 

 

3.0

%

 

 

0.2

%

 

 

0.1

%

Orange County

 

 

3,718

 

 

 

5.2

%

 

 

2,917

 

 

 

96.0

%

 

 

28.9

%

 

 

4.1

%

 

 

4.6

%

 

 

3.9

%

 

 

4.3

%

 

 

(0.3

%)

 

 

0.0

%

San Diego

 

 

2,878

 

 

 

4.2

%

 

 

3,119

 

 

 

95.9

%

 

 

32.1

%

 

 

4.5

%

 

 

1.9

%

 

 

5.2

%

 

 

4.0

%

 

 

0.4

%

 

 

0.0

%

Subtotal – Southern California

 

20,731

 

 

 

26.9

%

 

 

2,955

 

 

 

95.7

%

 

 

32.6

%

 

 

3.6

%

 

 

2.5

%

 

 

4.0

%

 

 

3.4

%

 

 

0.1

%

 

 

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Washington, D.C.

 

 

14,416

 

 

 

16.5

%

 

 

2,716

 

 

 

96.9

%

 

 

32.6

%

 

 

4.8

%

 

 

2.8

%

 

 

5.8

%

 

 

4.6

%

 

 

0.2

%

 

 

0.1

%

San Francisco

 

 

11,188

 

 

 

15.9

%

 

 

3,321

 

 

 

96.2

%

 

 

33.8

%

 

 

1.5

%

 

 

0.6

%

 

 

1.9

%

 

 

1.0

%

 

 

0.5

%

 

 

0.3

%

New York

 

 

8,536

 

 

 

14.3

%

 

 

4,624

 

 

 

97.3

%

 

 

27.1

%

 

 

3.6

%

 

 

4.0

%

 

 

3.4

%

 

 

3.1

%

 

 

0.5

%

 

 

(3.2

%)

Boston

 

 

7,077

 

 

 

11.2

%

 

 

3,597

 

 

 

96.2

%

 

 

33.8

%

 

 

4.1

%

 

 

0.9

%

 

 

5.4

%

 

 

3.9

%

 

 

0.2

%

 

 

(1.7

%)

Seattle

 

 

9,266

 

 

 

10.4

%

 

 

2,602

 

 

 

96.2

%

 

 

36.0

%

 

 

1.7

%

 

 

4.9

%

 

 

0.5

%

 

 

0.7

%

 

 

1.0

%

 

 

(3.8

%)

Denver

 

 

2,505

 

 

 

2.6

%

 

 

2,418

 

 

 

96.3

%

 

 

42.7

%

 

 

0.4

%

 

 

0.1

%

 

 

0.6

%

 

 

0.8

%

 

 

0.0

%

 

 

(3.9

%)

Other Expansion Markets

 

 

3,197

 

 

 

2.2

%

 

 

1,958

 

 

 

95.2

%

 

 

45.8

%

 

 

(0.8

%)

 

 

(6.8

%)

(1)

 

3.9

%

 

 

(1.4

%)

 

 

0.4

%

 

 

0.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

76,916

 

 

 

100.0

%

 

$

3,108

 

 

 

96.3

%

 

 

33.5

%

 

 

3.1

%

 

 

2.3

%

 

 

3.5

%

 

 

2.7

%

 

 

0.4

%

 

 

(1.1

%)

(1)

Expense decline primarily due to favorable Texas real estate taxes.

 

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.3% of total revenues for the nine months ended September 30, 2024.

Equity Residential

Same Store Residential Net Effective Lease Pricing Statistics

For 76,916 Same Store Apartment Units

 

 

 

New Lease Change (1)

 

Renewal Rate Achieved (1)

 

Blended Rate (1)

Markets/Metro Areas

 

Q3 2024

 

Q2 2024

 

Q3 2024

 

Q2 2024

 

Q3 2024

 

Q2 2024

Southern California

 

 

(2.7

%)

(2)

 

(2.4

%)

 

 

4.2

%

 

 

4.5

%

 

 

0.9

%

 

 

1.4

%

Washington, D.C.

 

 

2.3

%

 

 

4.8

%

 

 

5.2

%

 

 

6.7

%

 

 

3.9

%

 

 

5.9

%

San Francisco

 

 

(1.2

%)

 

 

0.4

%

 

 

5.2

%

 

 

5.1

%

 

 

2.0

%

 

 

2.9

%

New York

 

 

0.9

%

 

 

3.5

%

 

 

4.1

%

 

 

4.4

%

 

 

2.9

%

 

 

4.0

%

Boston

 

 

1.5

%

 

 

0.3

%

 

 

5.1

%

 

 

5.0

%

 

 

3.6

%

 

 

3.0

%

Seattle

 

 

(3.8

%)

 

 

0.5

%

 

 

4.8

%

 

 

5.3

%

 

 

0.9

%

 

 

3.3

%

Subtotal – Established Markets

 

 

(0.5

%)

 

 

0.9

%

 

 

4.7

%

 

 

5.1

%

 

 

2.4

%

 

 

3.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denver

 

 

(10.0

%)

 

 

(4.6

%)

 

 

4.3

%

 

 

3.9

%

 

 

(3.1

%)

 

 

(0.5

%)

Other Expansion Markets

 

 

(13.6

%)

 

 

(12.5

%)

 

 

1.2

%

 

 

2.7

%

 

 

(6.8

%)

 

 

(6.2

%)

Subtotal – Expansion Markets

 

 

(11.8

%)

 

 

(9.1

%)

 

 

2.8

%

 

 

3.3

%

 

 

(4.9

%)

 

 

(3.5

%)

Total

 

 

(1.2

%)

 

 

0.2

%

 

 

4.6

%

 

 

5.0

%

 

 

2.0

%

 

 

2.9

%

(1)

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

(2)

As previously mentioned, New Lease Change in the city of Los Angeles decelerated more quickly than expected during the third quarter of 2024. Performance in the city of Los Angeles has improved thus far in the fourth quarter of 2024.

Equity Residential

Third Quarter 2024 vs. Third Quarter 2023

Total Same Store Operating Expenses Including 77,203 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands)

 

 

 

Q3 2024

 

Q3 2023

 

$

Change

 

%

Change

 

% of

Q3 2024

Operating

Expenses

Real estate taxes

 

$

92,513

 

 

$

90,731

 

 

$

1,782

 

 

 

2.0

%

 

 

40.2

%

On-site payroll

 

 

43,732

 

 

 

44,066

 

 

 

(334

)

 

 

(0.8

%)

 

 

19.0

%

Utilities

 

 

36,838

 

 

 

34,023

 

 

 

2,815

 

 

 

8.3

%

 

 

16.0

%

Repairs and maintenance

 

 

32,121

 

 

 

31,043

 

 

 

1,078

 

 

 

3.5

%

 

 

14.0

%

Insurance

 

 

9,223

 

 

 

8,438

 

 

 

785

 

 

 

9.3

%

 

 

4.0

%

Leasing and advertising

 

 

2,948

 

 

 

2,784

 

 

 

164

 

 

 

5.9

%

 

 

1.3

%

Other on-site operating expenses

 

 

12,723

 

 

 

11,962

 

 

 

761

 

 

 

6.4

%

 

 

5.5

%

Total Same Store Operating Expenses (2)

 

$

230,098

 

 

$

223,047

 

 

$

7,051

 

 

 

3.2

%

 

 

100.0

%

 

September YTD 2024 vs. September YTD 2023

Total Same Store Operating Expenses Including 76,916 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands)

 

 

 

YTD 2024

 

YTD 2023

 

$

Change (1)

 

%

Change

 

% of

YTD 2024

Operating

Expenses

Real estate taxes

 

$

279,731

 

 

$

271,701

 

 

$

8,030

 

 

 

3.0

%

 

 

40.9

%

On-site payroll

 

 

128,807

 

 

 

128,853

 

 

 

(46

)

 

 

0.0

%

 

 

18.8

%

Utilities

 

 

105,976

 

 

 

104,312

 

 

 

1,664

 

 

 

1.6

%

 

 

15.5

%

Repairs and maintenance

 

 

93,180

 

 

 

92,406

 

 

 

774

 

 

 

0.8

%

 

 

13.6

%

Insurance

 

 

27,800

 

 

 

25,258

 

 

 

2,542

 

 

 

10.1

%

 

 

4.0

%

Leasing and advertising

 

 

7,990

 

 

 

7,882

 

 

 

108

 

 

 

1.4

%

 

 

1.2

%

Other on-site operating expenses

 

 

40,858

 

 

 

38,221

 

 

 

2,637

 

 

 

6.9

%

 

 

6.0

%

Total Same Store Operating Expenses (2)

 

$

684,342

 

 

$

668,633

 

 

$

15,709

 

 

 

2.3

%

 

 

100.0

%

 

(1)

The year-over-year changes were primarily driven by the following factors:

 

 

 

Real estate taxes – Increase due to escalation in rates and assessed values including an approximately one percentage point contribution to growth from 421-a tax abatement burnoffs in New York City. Once the burnoffs are completed, previously rent-restricted apartment units will transition to market.

 

 

 

On-site payroll – No change as higher wages were offset by the impact of various innovation initiatives.

 

 

 

Utilities – Increase primarily driven by higher water, sewer and trash expense, partially offset by lower commodity prices for gas and electric.

 

 

 

Repairs and maintenance – Modest growth benefiting from lower resident Turnover compared to the same period of 2023.

 

 

 

Insurance – Increase due to higher premiums on property insurance renewal due to conditions in the insurance market that while less difficult than recent years, remain challenging.

 

 

 

Other on-site operating expenses – Increase primarily driven by higher property-related legal expenses.

 

 

(2)

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

Equity Residential

Debt Summary as of September 30, 2024

($ in thousands)

 

 

 

Debt

Balances (1)

 

% of Total

 

Weighted

Average

Rates (1)

 

Weighted

Average

Maturities

(years)

Secured

 

$

1,633,414

 

 

 

19.5

%

 

 

3.85

%

 

 

7.1

 

Unsecured

 

 

6,732,231

 

 

 

80.5

%

 

 

3.67

%

 

 

7.3

 

Total

 

$

8,365,645

 

 

 

100.0

%

 

 

3.71

%

 

 

7.3

 

Fixed Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

Secured – Conventional

 

$

1,400,472

 

 

 

16.7

%

 

 

3.89

%

 

 

6.7

 

Unsecured – Public

 

 

5,945,670

 

 

 

71.1

%

 

 

3.52

%

 

 

8.2

 

Fixed Rate Debt

 

 

7,346,142

 

 

 

87.8

%

 

 

3.60

%

 

 

7.9

 

Floating Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

Secured – Tax Exempt

 

 

232,942

 

 

 

2.8

%

 

 

3.62

%

 

 

10.0

 

Unsecured – Revolving Credit Facility

 

 

 

 

 

 

 

 

6.14

%

 

 

3.1

 

Unsecured – Commercial Paper Program (2)

 

 

786,561

 

 

 

9.4

%

 

 

5.51

%

 

 

 

Floating Rate Debt

 

 

1,019,503

 

 

 

12.2

%

 

 

4.85

%

 

 

2.4

 

Total

 

$

8,365,645

 

 

 

100.0

%

 

 

3.71

%

 

 

7.3

 

(1)

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

(2)

At September 30, 2024, the weighted average maturity of commercial paper outstanding was 22 days. The weighted average amount outstanding for the nine months ended September 30, 2024 was approximately $420.5 million.

 

Note: The Company capitalized interest of approximately $10.7 million and $9.6 million during the nine months ended September 30, 2024 and 2023, respectively. The Company capitalized interest of approximately $3.8 million and $2.6 million during the quarters ended September 30, 2024 and 2023, respectively.

Equity Residential

Debt Maturity Schedule as of September 30, 2024

($ in thousands)

 

Year

 

Fixed

Rate

 

Floating

Rate

 

Total

 

% of Total

 

Weighted

Average Coupons

on Fixed

Rate Debt (1)

 

Weighted

Average

Coupons on

Total Debt (1)

2024

 

$

 

 

$

792,700

 

(2)

$

792,700

 

 

 

9.4

%

 

 

 

 

 

5.11

%

2025

 

 

450,000

 

 

 

8,100

 

 

 

458,100

 

 

 

5.4

%

 

 

3.38

%

 

 

3.37

%

2026

 

 

592,025

 

 

 

9,000

 

 

 

601,025

 

 

 

7.1

%

 

 

3.58

%

 

 

3.58

%

2027

 

 

400,000

 

 

 

9,800

 

 

 

409,800

 

 

 

4.9

%

 

 

3.25

%

 

 

3.24

%

2028

 

 

900,000

 

 

 

10,700

 

 

 

910,700

 

 

 

10.8

%

 

 

3.79

%

 

 

3.78

%

2029

 

 

888,120

 

 

 

11,500

 

 

 

899,620

 

 

 

10.7

%

 

 

3.30

%

 

 

3.30

%

2030

 

 

1,148,462

 

 

 

12,700

 

 

 

1,161,162

 

 

 

13.8

%

 

 

2.53

%

 

 

2.54

%

2031

 

 

528,500

 

 

 

39,800

 

 

 

568,300

 

 

 

6.7

%

 

 

1.94

%

 

 

2.03

%

2032

 

 

 

 

 

28,100

 

 

 

28,100

 

 

 

0.3

%

 

 

 

 

 

2.93

%

2033

 

 

550,000

 

 

 

2,300

 

 

 

552,300

 

 

 

6.5

%

 

 

5.22

%

 

 

5.21

%

2034+

 

 

1,950,850

 

 

 

108,600

 

 

 

2,059,450

 

 

 

24.4

%

 

 

4.47

%

 

 

4.35

%

Subtotal

 

 

7,407,957

 

 

 

1,033,300

 

 

 

8,441,257

 

 

 

100.0

%

 

 

3.62

%

 

 

3.73

%

Deferred Financing Costs and Unamortized (Discount)

 

 

(61,815

)

 

 

(13,797

)

 

 

(75,612

)

 

N/A

 

 

N/A

 

 

N/A

 

Total

 

$

7,346,142

 

 

$

1,019,503

 

 

$

8,365,645

 

 

 

100.0

%

 

 

3.62

%

 

 

3.73

%

(1)

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

(2)

Includes $789.0 million in principal outstanding on the Company's Commercial Paper Program.

Equity Residential

Selected Unsecured Public Debt Covenants

 

 

 

September 30,

 

June 30,

 

 

2024

 

2024

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

 

28.4%

 

25.6%

 

 

 

 

 

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

 

6.3%

 

6.7%

 

 

 

 

 

Consolidated Income Available for Debt Service to

Maximum Annual Service Charges

(must be at least 1.5 to 1)

 

5.97

 

6.68

 

 

 

 

 

Total Unencumbered Assets to Unsecured Debt

(must be at least 125%)

 

457.7%

 

534.8%

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

Selected Credit Ratios

 

 

 

September 30,

 

June 30,

 

 

2024

 

2024

Total debt to Normalized EBITDAre

 

4.60x

 

3.96x

 

 

 

 

 

Net debt to Normalized EBITDAre

 

4.56x

 

3.92x

 

 

 

 

 

Unencumbered NOI as a % of total NOI

 

89.7%

 

89.6%

Note: See Normalized EBITDAre Reconciliations for detail.

Equity Residential

Capital Structure as of September 30, 2024

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

 

Secured Debt

 

 

 

 

 

 

 

$

1,633,414

 

 

 

19.5

%

 

 

 

Unsecured Debt

 

 

 

 

 

 

 

 

6,732,231

 

 

 

80.5

%

 

 

 

Total Debt

 

 

 

 

 

 

 

 

8,365,645

 

 

 

100.0

%

 

 

22.3

%

Common Shares (includes Restricted Shares)

 

 

379,354,738

 

 

 

97.0

%

 

 

 

 

 

 

 

 

 

Units (includes OP Units and Restricted Units)

 

 

11,562,954

 

 

 

3.0

%

 

 

 

 

 

 

 

 

 

Total Shares and Units

 

 

390,917,692

 

 

 

100.0

%

 

 

 

 

 

 

 

 

 

Common Share Price at September 30, 2024

 

$

74.46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,107,731

 

 

 

99.9

%

 

 

 

Perpetual Preferred Equity (see below)

 

 

 

 

 

 

 

 

17,155

 

 

 

0.1

%

 

 

 

Total Equity

 

 

 

 

 

 

 

 

29,124,886

 

 

 

100.0

%

 

 

77.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Market Capitalization

 

 

 

 

 

 

 

$

37,490,531

 

 

 

 

 

 

100.0

%

 

Perpetual Preferred Equity as of September 30, 2024

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

 

Series

 

Call Date

 

Outstanding

Shares

 

 

Liquidation

Value

 

 

Annual

Dividend

Per Share

 

 

Annual

Dividend

Amount

 

Preferred Shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8.29% Series K

 

12/10/26

 

 

343,100

 

 

$

17,155

 

 

$

4.145

 

 

$

1,422

 

 

Equity Residential

Common Share and Unit

Weighted Average Amounts Outstanding

 

 

Sept. YTD 2024

 

Sept. YTD 2023

 

Q3 2024

 

Q3 2023

Weighted Average Amounts Outstanding for Net Income Purposes:

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares - basic

 

 

378,718,147

 

 

 

378,613,604

 

 

 

378,755,925

 

 

 

378,852,510

 

Shares issuable from assumed conversion/vesting of:

 

 

 

 

 

 

 

 

 

 

 

 

- OP Units

 

 

10,661,328

 

 

 

11,377,365

 

 

 

10,622,681

 

 

 

11,234,877

 

- long-term compensation shares/units

 

 

1,308,755

 

 

 

1,144,517

 

 

 

1,647,562

 

 

 

1,263,254

 

Total Common Shares and Units - diluted

 

 

390,688,230

 

 

 

391,135,486

 

 

 

391,026,168

 

 

 

391,350,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes:

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares - basic

 

 

378,718,147

 

 

 

378,613,604

 

 

 

378,755,925

 

 

 

378,852,510

 

OP Units - basic

 

 

10,661,328

 

 

 

11,377,365

 

 

 

10,622,681

 

 

 

11,234,877

 

Total Common Shares and OP Units - basic

 

 

389,379,475

 

 

 

389,990,969

 

 

 

389,378,606

 

 

 

390,087,387

 

Shares issuable from assumed conversion/vesting of:

 

 

 

 

 

 

 

 

 

 

 

 

- long-term compensation shares/units

 

 

1,308,755

 

 

 

1,144,517

 

 

 

1,647,562

 

 

 

1,263,254

 

Total Common Shares and Units - diluted

 

 

390,688,230

 

 

 

391,135,486

 

 

 

391,026,168

 

 

 

391,350,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period Ending Amounts Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares (includes Restricted Shares)

 

 

379,354,738

 

 

 

379,723,838

 

 

 

 

 

 

 

Units (includes OP Units and Restricted Units)

 

 

11,562,954

 

 

 

11,733,485

 

 

 

 

 

 

 

Total Shares and Units

 

 

390,917,692

 

 

 

391,457,323

 

 

 

 

 

 

 

Equity Residential

Development and Lease-Up Projects as of September 30, 2024

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated/Actual

 

 

Projects

 

Location

 

Ownership

Percentage

 

No. of

Apartment

Units

 

 

Total

Budgeted Capital

Cost

 

Total

Book Value

to Date

 

Total

Debt (1)

 

Percentage

Completed

 

Start

Date

 

Initial

Occupancy

 

Completion

Date

 

Stabilization

Date

 

Percentage

Leased / Occupied

CONSOLIDATED:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projects Under Development: