Skip to main content

Equity Residential Reports Second Quarter 2022 Results

Robust Demand and Continued Strong Cost Controls Drive Guidance Improvements

Equity Residential (NYSE: EQR) today reported results for the quarter and six months ended June 30, 2022.

Second Quarter 2022 Results

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended June 30,

 

 

 

 

 

2022

 

 

2021

 

 

$ Change

 

 

% Change

 

 

 

Earnings Per Share (EPS)

 

$

0.59

 

 

$

0.84

 

 

$

(0.25

)

 

 

(29.8

%)

 

 

Funds from Operations (FFO) per share

 

$

0.89

 

 

$

0.78

 

 

$

0.11

 

 

 

14.1

%

 

 

Normalized FFO per share

 

$

0.89

 

 

$

0.72

 

 

$

0.17

 

 

 

23.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

 

 

2022

 

 

2021

 

 

$ Change

 

 

% Change

 

 

 

Earnings Per Share (EPS)

 

$

0.78

 

 

$

1.00

 

 

$

(0.22

)

 

 

(22.0

%)

 

 

Funds from Operations (FFO) per share

 

$

1.66

 

 

$

1.45

 

 

$

0.21

 

 

 

14.5

%

 

 

Normalized FFO per share

 

$

1.66

 

 

$

1.40

 

 

$

0.26

 

 

 

18.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“We delivered outstanding results this quarter supported by favorable supply-and-demand dynamics and a healthy labor market bolstering employment and wages. As a result, we are pleased to significantly raise our full year same store revenue, NOI and Normalized FFO guidance,” said Mark J. Parrell, Equity Residential’s President and CEO. “Going forward, we expect elevated single family home ownership costs and positive household formation trends to buffer the impact on our business from economic weakness and see our affluent resident base as more resilient to rising inflation due to higher levels of disposable income and lower relative rent-to-income ratios.”

Recent Highlights

  • The Company reported a 13.6% increase in same store revenue for the second quarter of 2022 compared to the same period of 2021, driven by strong Physical Occupancy and continued growth in pricing power. Same store expense growth continued to remain in check at 3.1% driven by favorable real estate tax and payroll expense.
  • The Company has increased the midpoint of its full year 2022 same store revenue guidance to 10.5% from 9.0% and adjusted various guidance ranges as described in the table below.
  • The Company sold a 354-unit apartment property in New York for approximately $265.7 million in April 2022 and in July 2022 sold a 455-unit apartment property in New York for $415.0 million.

Full Year 2022 Guidance

The Company has revised its guidance for its full year 2022 same store operating performance, EPS, FFO per share, Normalized FFO per share and transactions as listed below:

 

 

Revised

 

 

Previous

 

 

Change at Midpoint

 

Same Store (includes Residential and Non-Residential):

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

96.5%

 

 

96.5%

 

 

0.0%

 

Revenue change

 

10.0% to 11.0%

 

 

8.0% to 10.0%

 

 

1.5%

 

Expense change

 

2.5% to 3.5%

 

 

2.5% to 3.5%

 

 

0.0%

 

NOI change

 

13.75% to 14.75%

 

 

11.0% to 13.0%

 

 

2.25%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS

 

$1.98 to $2.08

 

 

$4.18 to $4.28

 

 

$(2.20)

 

FFO per share

 

$3.45 to $3.55

 

 

$3.36 to $3.46

 

 

$0.09

 

Normalized FFO per share

 

$3.48 to $3.58

 

 

$3.40 to $3.50

 

 

$0.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transactions (1):

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated rental acquisitions

 

$113.0 million

 

 

$2.0 billion

 

 

 

 

 

Consolidated rental dispositions

 

$746.0 million

 

 

$2.0 billion

 

 

 

 

 

(1)

Given current uncertainty in the transaction environment, the Company’s revised acquisition and disposition guidance reflects no additional activities beyond one sale for $65.5 million currently under contract and scheduled to close in the fourth quarter of 2022.

The change in the full year 2022 EPS guidance range is due primarily to lower expected property sale gains and the items described below.

The change in the full year 2022 FFO per share guidance range is due primarily to the items described below.

The change in the full year 2022 Normalized FFO per share guidance range is due primarily to:

 

 

Positive/(Negative)

Impact

 

 

 

Revised Full Year 2022 vs

Previous Full Year 2022

 

Residential same store Net Operating Income (NOI)

 

$

0.09

 

2022 and 2021 transaction activity impact on NOI, net

 

 

(0.02

)

Interest expense, net

 

 

0.01

 

Net

 

$

0.08

 

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.

Results Per Share

The changes in EPS for the quarter and six months ended June 30, 2022 compared to the same periods of 2021 are due primarily to lower property sale gains and higher depreciation expense in the current periods, offset by 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 six months ended June 30, 2022 compared to the same periods of 2021 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

 

 

 

Second Quarter 2022 vs.

Second Quarter 2021

 

 

June YTD 2022 vs.

June YTD 2021

 

Residential Same Store NOI

 

$

0.18

 

 

$

0.27

 

Non-Residential same store NOI

 

 

0.01

 

 

 

0.01

 

Lease-Up NOI

 

 

0.01

 

 

 

0.02

 

2022 and 2021 transaction activity impact on NOI, net

 

 

 

0.01

 

Interest expense, net

 

 

(0.01

)

 

 

(0.02

)

Other items

 

 

(0.02

)

 

 

(0.03

)

Net

 

$

0.17

 

 

$

0.26

 

Same Store Results

The following table shows the total same store results for the periods presented.

 

 

Second Quarter 2022 vs.

Second Quarter 2021

 

 

Second Quarter 2022 vs.

First Quarter 2022

 

 

June YTD 2022 vs.

June YTD 2021

 

Apartment Units

 

74,057

 

 

78,108

 

 

74,057

 

Physical Occupancy

 

96.7% vs. 96.1%

 

 

96.7% vs. 96.4%

 

 

96.5% vs. 95.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

13.6%

 

 

5.3%

 

 

10.7%

 

Expenses

 

3.1%

 

 

(2.9%)

 

 

2.8%

 

NOI

 

19.1%

 

 

9.6%

 

 

15.0%

 

 

On page 11 of this release, the Company has provided a breakout of Residential and Non-Residential same store results with definitions that can be found on page 33 of this release. Non-Residential operations account for approximately 3.8% of total revenues for the six months ended June 30, 2022.

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.

 

 

Second Quarter 2022 vs.

Second Quarter 2021

 

 

Second Quarter 2022 vs.

First Quarter 2022

 

 

June YTD 2022 vs.

June YTD 2021

 

 

 

% Change

 

 

% Change

 

 

% Change

 

Same Store Residential Revenues-

 

 

 

 

 

 

 

 

 

 

 

comparable period

Lease rates

 

 

8.3

%

 

 

2.7

%

 

 

6.3

%

Leasing Concessions

 

 

2.0

%

 

 

0.3

%

 

 

1.7

%

Vacancy gain (loss)

 

 

0.2

%

 

 

0.1

%

 

 

0.7

%

Bad Debt, Net (1)

 

 

2.5

%

 

 

1.9

%

 

 

1.6

%

Other (2)

 

 

0.7

%

 

 

0.4

%

 

 

0.5

%

Same Store Residential Revenues-

 

13.7

%

 

 

5.4

%

 

 

10.8

%

current period

(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.

(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:

 

Q1 2022

 

 

Q2 2022

 

 

July 2022 (1)

 

Physical Occupancy (2)

 

96.3%

 

 

96.4%

 

 

96.5%

 

Percentage of Residents Renewing by quarter/month

59.9%

 

 

56.3%

 

 

55.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Lease Change

 

15.3%

 

 

19.2%

 

 

16.4%

 

Renewal Rate Achieved

 

12.0%

 

 

11.2%

 

 

10.0%

 

Blended Rate

 

13.3%

 

 

14.8%

 

 

12.9%

 

(1)

July 2022 results are preliminary. Moderation in July operating metrics is being driven by a more challenging 2021 comparable period, not a loss in operating momentum, as our sequential rents continue to grow.

(2)

Physical Occupancy is as of month-end March for Q1 2022, month-end June for Q2 2022 and as of July 21st for July 2022.

Investment Activity and Portfolio Strategy

The Company did not acquire any properties during the second quarter of 2022. During the first six months of 2022, the Company acquired a 172-unit apartment property in San Diego, built in 2020, for $113.0 million at an Acquisition Cap Rate of 3.5%.

During the second quarter of 2022, the Company sold a 354-unit apartment property in New York, built in 2003, for approximately $265.7 million at a Disposition Yield of 3.3%, generating an Unlevered IRR of 6.6%. Subsequent to the end of the second quarter, the Company sold a 455-unit apartment property in New York, built in 2001, for $415.0 million at a Disposition Yield of 3.4%.

Also during the second quarter of 2022, the Company began construction on one wholly owned densification project located in Santa Clara, CA for the development of 225 apartment units and one unconsolidated project located in Ft. Worth, TX for the development of 362 apartment units as part of its joint venture with Toll Brothers.

Third Quarter 2022 Guidance

The Company has established guidance ranges for the third quarter of 2022 EPS, FFO per share and Normalized FFO per share as listed below:

 

 

Q3 2022

Guidance

EPS

 

$0.77 to $0.81

FFO per share

 

$0.87 to $0.91

Normalized FFO per share

 

$0.89 to $0.93

The difference between the second quarter of 2022 actual EPS of $0.59 and the third quarter of 2022 EPS guidance midpoint of $0.79 is due primarily to higher expected property sale gains and the items described below.

There is no net change between the second quarter of 2022 actual FFO of $0.89 per share and the third quarter of 2022 FFO guidance midpoint of $0.89 per share.

The difference between the second quarter of 2022 actual Normalized FFO of $0.89 per share and the third quarter of 2022 Normalized FFO guidance midpoint of $0.91 per share is due primarily to:

 

 

Positive/(Negative)

Impact

 

 

 

 

Third Quarter 2022 vs.

Second Quarter 2022

 

 

Residential Same Store NOI

 

$

0.01

 

 

2022 transaction activity impact on NOI, net

 

 

(0.01

)

 

Interest expense, net

 

 

0.01

 

 

Other items

 

 

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 310 properties consisting of 80,227 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, July 27, 2022 at 10:00 a.m. CT. 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)

 

 

 

Six Months Ended June 30,

 

 

Quarter Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

1,340,378

 

 

$

1,195,661

 

 

$

687,030

 

 

$

598,059

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and maintenance

 

 

241,229

 

 

 

224,800

 

 

 

116,355

 

 

 

107,746

 

Real estate taxes and insurance

 

 

202,538

 

 

 

200,871

 

 

 

101,850

 

 

 

97,401

 

Property management

 

 

57,306

 

 

 

50,585

 

 

 

26,559

 

 

 

24,455

 

General and administrative

 

 

33,661

 

 

 

30,061

 

 

 

16,423

 

 

 

14,678

 

Depreciation

 

 

453,767

 

 

 

400,635

 

 

 

223,806

 

 

 

200,673

 

Total expenses

 

 

988,501

 

 

 

906,952

 

 

 

484,993

 

 

 

444,953

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain (loss) on sales of real estate properties

 

 

107,795

 

 

 

223,695

 

 

 

107,897

 

 

 

223,738

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

459,672

 

 

 

512,404

 

 

 

309,934

 

 

 

376,844

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

 

4,124

 

 

 

24,320

 

 

 

596

 

 

 

24,104

 

Other expenses

 

 

(5,436

)

 

 

(7,452

)

 

 

(2,380

)

 

 

(3,342

)

Interest:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense incurred, net

 

 

(144,681

)

 

 

(134,482

)

 

 

(71,889

)

 

 

(67,124

)

Amortization of deferred financing costs

 

 

(4,201

)

 

 

(4,124

)

 

 

(2,124

)

 

 

(1,939

)

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

 

 

309,478

 

 

 

390,666

 

 

 

234,137

 

 

 

328,543

 

investments in unconsolidated entities and net gain (loss)

on sales of land parcels

Income and other tax (expense) benefit

 

 

(573

)

 

 

(395

)

 

 

(291

)

 

 

(242

)

Income (loss) from investments in unconsolidated entities

 

 

(2,429

)

 

 

(1,872

)

 

 

(1,168

)

 

 

(261

)

Net gain (loss) on sales of land parcels

 

 

 

 

 

5

 

 

 

 

 

 

 

Net income

 

 

306,476

 

 

 

388,404

 

 

 

232,678

 

 

 

328,040

 

Net (income) loss attributable to Noncontrolling Interests:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Partnership

 

 

(10,027

)

 

 

(13,056

)

 

 

(7,633

)

 

 

(10,913

)

Partially Owned Properties

 

 

(1,583

)

 

 

(1,423

)

 

 

(944

)

 

 

(741

)

Net income attributable to controlling interests

 

 

294,866

 

 

 

373,925

 

 

 

224,101

 

 

 

316,386

 

Preferred distributions

 

 

(1,545

)

 

 

(1,545

)

 

 

(773

)

 

 

(772

)

Net income available to Common Shares

 

$

293,321

 

 

$

372,380

 

 

$

223,328

 

 

$

315,614

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

0.78

 

 

$

1.00

 

 

$

0.59

 

 

$

0.84

 

Weighted average Common Shares outstanding

 

 

375,640

 

 

 

373,050

 

 

 

375,769

 

 

 

373,812

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

0.78

 

 

$

1.00

 

 

$

0.59

 

 

$

0.84

 

Weighted average Common Shares outstanding

 

 

389,463

 

 

 

387,367

 

 

 

389,363

 

 

 

387,820

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions declared per Common Share outstanding

 

$

1.25

 

 

$

1.205

 

 

$

0.625

 

 

$

0.6025

 

Equity Residential

Consolidated Statements of Funds From Operations and Normalized Funds From Operations

(Amounts in thousands except per share data)

(Unaudited)

 

 

 

Six Months Ended June 30,

 

 

Quarter Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income

 

$

306,476

 

 

$

388,404

 

 

$

232,678

 

 

$

328,040

 

Net (income) loss attributable to Noncontrolling Interests – Partially

 

 

(1,583

)

 

 

(1,423

)

 

 

(944

)

 

 

(741

)

Owned Properties

Preferred distributions

 

 

(1,545

)

 

 

(1,545

)

 

 

(773

)

 

 

(772

)

Net income available to Common Shares and Units

 

 

303,348

 

 

 

385,436

 

 

 

230,961

 

 

 

326,527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

453,767

 

 

 

400,635

 

 

 

223,806

 

 

 

200,673

 

Depreciation – Non-real estate additions

 

 

(2,114

)

 

 

(2,176

)

 

 

(1,062

)

 

 

(1,076

)

Depreciation – Partially Owned Properties

 

 

(1,554

)

 

 

(1,682

)

 

 

(661

)

 

 

(854

)

Depreciation – Unconsolidated Properties

 

 

1,240

 

 

 

1,233

 

 

 

620

 

 

 

616

 

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

 

 

(9

)

 

 

(4

)

 

 

 

 

 

 

assets

Net (gain) loss on sales of real estate properties

 

 

(107,795

)

 

 

(223,695

)

 

 

(107,897

)

 

 

(223,738

)

FFO available to Common Shares and Units

 

 

646,883

 

 

 

559,747

 

 

 

345,767

 

 

 

302,148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments (see note for additional detail):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment – non-operating assets

 

 

 

 

 

 

 

 

 

 

 

 

Write-off of pursuit costs

 

 

2,515

 

 

 

2,647

 

 

 

1,052

 

 

 

1,316

 

Debt extinguishment and preferred share redemption (gains)

 

 

469

 

 

 

264

 

 

 

469

 

 

 

 

losses

Non-operating asset (gains) losses

 

 

(1,330

)

 

 

(23,308

)

 

 

312

 

 

 

(24,162

)

Other miscellaneous items

 

 

(185

)

 

 

3,341

 

 

 

186

 

 

 

1,099

 

Normalized FFO available to Common Shares and Units

 

$

648,352

 

 

$

542,691

 

 

$

347,786

 

 

$

280,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

$

648,428

 

 

$

561,292

 

 

$

346,540

 

 

$

302,920

 

Preferred distributions

 

 

(1,545

)

 

 

(1,545

)

 

 

(773

)

 

 

(772

)

FFO available to Common Shares and Units

 

$

646,883

 

 

$

559,747

 

 

$

345,767

 

 

$

302,148

 

FFO per share and Unit – basic

 

$

1.67

 

 

$

1.45

 

 

$

0.89

 

 

$

0.78

 

FFO per share and Unit – diluted

 

$

1.66

 

 

$

1.45

 

 

$

0.89

 

 

$

0.78

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Normalized FFO

 

$

649,897

 

 

$

544,236

 

 

$

348,559

 

 

$

281,173

 

Preferred distributions

 

 

(1,545

)

 

 

(1,545

)

 

 

(773

)

 

 

(772

)

Normalized FFO available to Common Shares and Units

 

$

648,352

 

 

$

542,691

 

 

$

347,786

 

 

$

280,401

 

Normalized FFO per share and Unit – basic

 

$

1.67

 

 

$

1.41

 

 

$

0.90

 

 

$

0.73

 

Normalized FFO per share and Unit – diluted

 

$

1.66

 

 

$

1.40

 

 

$

0.89

 

 

$

0.72

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average Common Shares and Units outstanding – basic

 

 

387,531

 

 

 

385,594

 

 

 

387,664

 

 

 

385,856

 

Weighted average Common Shares and Units outstanding – diluted

 

 

389,463

 

 

 

387,367

 

 

 

389,363

 

 

 

387,820

 

 

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

Equity Residential

Consolidated Balance Sheets

(Amounts in thousands except for share amounts)

(Unaudited)

 

 

 

June 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

ASSETS

 

 

 

 

 

 

 

 

Land

 

$

5,733,412

 

 

$

5,814,790

 

Depreciable property

 

 

22,443,313

 

 

 

22,370,811

 

Projects under development

 

 

65,161

 

 

 

24,307

 

Land held for development

 

 

59,573

 

 

 

62,998

 

Investment in real estate

 

 

28,301,459

 

 

 

28,272,906

 

Accumulated depreciation

 

 

(8,740,806

)

 

 

(8,354,282

)

Investment in real estate, net

 

 

19,560,653

 

 

 

19,918,624

 

Investments in unconsolidated entities1

 

 

169,272

 

 

 

127,448

 

Cash and cash equivalents

 

 

45,010

 

 

 

123,832

 

Restricted deposits

 

 

73,641

 

 

 

236,404

 

Right-of-use assets

 

 

468,834

 

 

 

474,713

 

Other assets

 

 

256,935

 

 

 

288,220

 

Total assets

 

$

20,574,345

 

 

$

21,169,241

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Mortgage notes payable, net

 

$

1,944,404

 

 

$

2,191,201

 

Notes, net

 

 

5,838,693

 

 

 

5,835,222

 

Line of credit and commercial paper

 

 

184,946

 

 

 

315,030

 

Accounts payable and accrued expenses

 

 

119,402

 

 

 

107,013

 

Accrued interest payable

 

 

69,037

 

 

 

69,510

 

Lease liabilities

 

 

310,513

 

 

 

312,335

 

Other liabilities

 

 

292,205

 

 

 

353,102

 

Security deposits

 

 

69,609

 

 

 

66,141

 

Distributions payable

 

 

242,667

 

 

 

233,502

 

Total liabilities

 

 

9,071,476

 

 

 

9,483,056

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable Noncontrolling Interests – Operating Partnership

 

 

398,188

 

 

 

498,977

 

Equity:

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

Preferred Shares of beneficial interest, $0.01 par value;

 

 

37,280

 

 

 

37,280

 

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

outstanding as of June 30, 2022 and December 31, 2021

Common Shares of beneficial interest, $0.01 par value;

 

 

3,761

 

 

 

3,755

 

1,000,000,000 shares authorized; 376,118,433 shares issued

and outstanding as of June 30, 2022 and 375,527,195

shares issued and outstanding as of December 31, 2021

Paid in capital

 

 

9,229,738

 

 

 

9,121,122

 

Retained earnings

 

 

1,649,960

 

 

 

1,827,063

 

Accumulated other comprehensive income (loss)

 

 

(30,650

)

 

 

(34,272

)

Total shareholders’ equity

 

 

10,890,089

 

 

 

10,954,948

 

Noncontrolling Interests:

 

 

 

 

 

 

 

 

Operating Partnership

 

 

216,326

 

 

 

214,094

 

Partially Owned Properties

 

 

(1,734

)

 

 

18,166

 

Total Noncontrolling Interests

 

 

214,592

 

 

 

232,260

 

Total equity

 

 

11,104,681

 

 

 

11,187,208

 

Total liabilities and equity

 

$

20,574,345

 

 

$

21,169,241

 

_________________________

1Includes $110.7 million and $72.5 million in unconsolidated development projects as of June 30, 2022 and December 31, 2021, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated development projects.

Equity Residential

Portfolio Summary

As of June 30, 2022

 

 

 

 

 

 

 

 

 

 

% of

Stabilized

 

 

Average

 

 

 

 

 

 

 

Apartment

 

 

Budgeted

 

 

Rental

 

Markets/Metro Areas

 

Properties

 

 

Units

 

 

NOI

 

 

Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Established Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

66

 

 

 

15,259

 

 

 

18.6

%

 

$

2,815

 

Orange County

 

 

13

 

 

 

4,028

 

 

 

5.3

%

 

 

2,659

 

San Diego

 

 

12

 

 

 

2,878

 

 

 

4.0

%

 

 

2,744

 

Subtotal – Southern California

 

 

91

 

 

 

22,165

 

 

 

27.9

%

 

 

2,778

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

44

 

 

 

11,830

 

 

 

16.0

%

 

 

3,148

 

Washington DC

 

 

48

 

 

 

14,851

 

 

 

15.7

%

 

 

2,440

 

New York

 

 

35

 

 

 

8,991

 

 

 

13.2

%

 

 

3,995

 

Boston

 

 

27

 

 

 

7,170

 

 

 

11.4

%

 

 

3,215

 

Seattle

 

 

46

 

 

 

9,525

 

 

 

11.0

%

 

 

2,478

 

Subtotal – Established Markets

 

 

291

 

 

 

74,532

 

 

 

95.2

%

 

 

2,921

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expansion Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denver

 

 

8

 

 

 

2,498

 

 

 

2.6

%

 

 

2,278

 

Atlanta

 

 

4

 

 

 

1,215

 

 

 

1.0

%

 

 

1,993

 

Dallas/Ft. Worth

 

 

4

 

 

 

1,241

 

 

 

0.8

%

 

 

1,877

 

Austin

 

 

3

 

 

 

741

 

 

 

0.4

%

 

 

1,724

 

Subtotal – Expansion Markets

 

 

19

 

 

 

5,695

 

 

 

4.8

%

 

 

2,059

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

310

 

 

 

80,227

 

 

 

100.0

%

 

$

2,860

 

 

 

 

Properties

 

 

Apartment Units

 

 

 

 

 

 

 

 

 

 

Wholly Owned Properties

 

 

295

 

 

 

77,113

 

Partially Owned Properties – Consolidated (1)

 

 

15

 

 

 

3,114

 

 

 

 

 

 

 

 

 

 

 

 

 

310

 

 

 

80,227

 

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

 

 

(1)

During the second quarter of 2022, the Company acquired its joint venture partner’s 25% interest in a 432-unit apartment property in Chevy Chase, MD for $32.2 million, and the property is now wholly owned.

Equity Residential

 

Portfolio Rollforward Q2 2022

($ in thousands)

 

 

 

 

 

Properties

 

 

Apartment

Units

 

 

Sales Price

 

 

Disposition

Yield

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3/31/2022

 

 

311

 

 

 

80,581

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dispositions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties

 

 

 

 

(1

)

 

 

(354

)

 

$

(265,650

)

 

 

(3.3

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6/30/2022

 

 

310

 

 

 

80,227

 

 

 

 

 

 

 

 

 

 

Portfolio Rollforward 2022

($ in thousands)

 

 

 

 

 

Properties

 

 

Apartment

Units

 

 

Purchase

Price

 

 

Acquisition

Cap Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12/31/2021

 

 

310

 

 

 

80,407

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties

 

 

 

 

1

 

 

 

172

 

 

$

113,000

 

 

 

3.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Price

 

 

Disposition

Yield

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dispositions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties

 

 

 

 

(1

)

 

 

(354

)

 

$

(265,650

)

 

 

(3.3

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Configuration Changes

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6/30/2022

 

 

310

 

 

 

80,227

 

 

 

 

 

 

 

 

 

Equity Residential

 

Second Quarter 2022 vs. Second Quarter 2021

Same Store Results/Statistics Including 74,057 Same Store Apartment Units

($ in thousands except for Average Rental Rate)

 

Second Quarter 2022

 

 

Second Quarter 2021

 

 

 

Residential

 

 

% Change

 

 

Non-

Residential

 

 

% Change

 

 

Total

 

 

% Change

 

 

 

 

Residential

 

 

Non-

Residential

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

622,358

 

(1)

13.7%

 

 

$

23,439

 

 

12.3%

 

 

$

645,797

 

 

13.6%

 

 

Revenues

 

$

547,502

 

 

$

20,863

 

 

$

568,365

 

Expenses

 

$

195,372

 

 

3.1%

 

 

$

5,993

 

 

1.5%

 

 

$

201,365

 

 

3.1%

 

 

Expenses

 

$

189,425

 

 

$

5,903

 

 

$

195,328

 

NOI

 

$

426,986

 

 

19.2%

 

 

$

17,446

 

 

16.6%

 

 

$

444,432

 

 

19.1%

 

 

NOI

 

$

358,077

 

 

$

14,960

 

 

$

373,037

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

 

$

2,900

 

 

13.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

$

2,566

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

96.7

%

 

0.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

96.1

%

 

 

 

 

 

 

 

 

Turnover

 

11.1

%

 

(0.3%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Turnover

 

11.4

%

 

 

 

 

 

 

 

 

 

Second Quarter 2022 vs. First Quarter 2022

Same Store Results/Statistics Including 78,108 Same Store Apartment Units

($ in thousands except for Average Rental Rate)

 

Second Quarter 2022

 

 

First Quarter 2022

 

 

 

Residential

 

 

% Change

 

 

Non-

Residential

 

 

% Change

 

 

Total

 

 

% Change

 

 

 

 

Residential

 

 

Non-

Residential

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

646,187

 

(1)

5.4%

 

 

$

23,929

 

 

2.9%

 

 

$

670,116

 

 

5.3%

 

 

Revenues

 

$

612,924

 

 

$

23,246

 

 

$

636,170

 

Expenses

 

$

204,750

 

 

(2.8%)

 

 

$

6,132

 

 

(3.1%)

 

 

$

210,882

 

 

(2.9%)

 

 

Expenses

 

$

210,740

 

 

$

6,331

 

 

$

217,071

 

NOI

 

$

441,437

 

 

9.8%

 

 

$

17,797

 

 

5.2%

 

 

$

459,234

 

 

9.6%

 

 

NOI

 

$

402,184

 

 

$

16,915

 

 

$

419,099

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

 

$

2,855

 

 

5.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

$

2,715

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

96.7

%

 

0.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

96.4

%

 

 

 

 

 

 

 

 

Turnover

 

11.2

%

 

2.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Turnover

 

8.8

%

 

 

 

 

 

 

 

 

 

June YTD 2022 vs. June YTD 2021

Same Store Results/Statistics Including 74,057 Same Store Apartment Units

($ in thousands except for Average Rental Rate)

 

June YTD 2022

 

 

June YTD 2021

 

 

 

Residential

 

 

% Change

 

 

Non-

Residential

 

 

% Change

 

 

Total

 

 

% Change

 

 

 

 

Residential

 

 

Non-

Residential

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,211,971

 

(1)

10.8%

 

 

$

46,262

 

 

9.5%

 

 

$

1,258,233

 

 

10.7%

 

 

Revenues

 

$

1,094,291

 

 

$

42,246

 

 

$

1,136,537

 

Expenses

 

$

396,666

 

 

2.8%

 

 

$

12,183

 

 

2.0%

 

 

$

408,849

 

 

2.8%

 

 

Expenses

 

$

385,818

 

 

$

11,944

 

 

$

397,762

 

NOI

 

$

815,305

 

 

15.1%

 

 

$

34,079

 

 

12.5%

 

 

$

849,384

 

 

15.0%

 

 

NOI

 

$

708,473

 

 

$

30,302

 

 

$

738,775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

 

$

2,827

 

 

9.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

$

2,580

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

96.5

%

 

1.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

95.5

%

 

 

 

 

 

 

 

 

Turnover

 

19.8

%

 

(1.5%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Turnover

 

21.3

%

 

 

 

 

 

 

 

 

(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.

Equity Residential

 

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

($ in thousands)

 

 

Second Quarter 2022 vs. Second Quarter 2021

 

 

Second Quarter 2022 vs. First Quarter 2022

 

 

June YTD 2022 vs. June YTD 2021

 

 

74,057 Same Store Apartment Units

 

 

78,108 Same Store Apartment Units

 

 

74,057 Same Store Apartment Units

 

 

Q2 2022

 

 

Q2 2021

 

 

Q2 2022

 

 

Q1 2022

 

 

June YTD 2022

 

 

June YTD 2021

 

Same Store Residential Revenues (GAAP Basis)

$

622,358

 

 

$

547,502

 

 

$

646,187

 

 

$

612,924

 

 

$

1,211,971

 

 

$

1,094,291

 

Leasing Concessions amortized

 

1,703

 

 

 

12,871

 

 

 

2,103

 

 

 

3,971

 

 

 

5,298

 

 

 

24,381

 

Leasing Concessions granted

 

(1,253

)

 

 

(8,009

)

 

 

(1,447

)

 

 

(1,559

)

 

 

(2,603

)

 

 

(24,794

)

Same Store Residential Revenues with Leasing

Concessions on a cash basis

$

622,808

 

 

$

552,364

 

 

$

646,843

 

 

$

615,336

 

 

$

1,214,666

 

 

$

1,093,878

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% change - GAAP revenue

 

13.7

%

 

 

 

 

 

 

5.4

%

 

 

 

 

 

 

10.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% change - cash revenue

 

12.8

%

 

 

 

 

 

 

5.1

%

 

 

 

 

 

 

11.0

%

 

 

 

 

(1)

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

 

Same Store Net Operating Income By Quarter

Including 74,057 Same Store Apartment Units

($ in thousands)

 

 

 

Q2 2022

 

 

Q1 2022

 

 

Q4 2021

 

 

Q3 2021

 

 

Q2 2021

 

Same store revenues

 

$

645,797

 

 

$

612,436

 

 

$

608,065

 

 

$

589,545

 

 

$

568,365

 

Same store expenses

 

 

201,365

 

 

 

207,484

 

 

 

196,936

 

 

 

202,510

 

 

 

195,328

 

Same store NOI

(includes Residential and Non-Residential)

 

$

444,432

 

 

$

404,952

 

 

$

411,129

 

 

$

387,035

 

 

$

373,037

 

Equity Residential

 

Same Store Resident/Tenant Accounts Receivable Balances

Including 74,057 Same Store Apartment Units

($ in thousands)

 

 

 

Residential

 

 

Non-Residential

 

Balance Sheet (Other assets):

 

June 30, 2022

 

 

March 31, 2022

 

 

June 30, 2022

 

 

March 31, 2022

 

Resident/tenant accounts receivable balances

$

35,243

 

 

$

42,302

 

 

$

3,410

 

 

$

3,631

 

Allowance for doubtful accounts

 

(31,690

)

 

 

(37,875

)

 

 

(2,534

)

 

 

(2,379

)

Net receivable balances

$

3,553

 

(1)

$

4,427

 

 

$

876

 

 

$

1,252

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line receivable balances

 

$

2,002

 

(2)

$

2,452

 

 

$

12,530

 

 

$

12,630

 

(1)

The Company held same store Residential security deposits approximating 63.0% of the net Residential receivable balance at June 30, 2022.

(2)

Total same store Residential Leasing Concessions granted in the second quarter of 2022 were approximately $1.3 million. The straight-line receivable balance of $2.0 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in the remainder of 2022 and the first half of 2023.

Same Store Residential Bad Debt

Including 74,057 Same Store Apartment Units

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement (Rental income):

 

Q2 2022

 

 

Q1 2022

 

 

Q2 2021

 

Bad Debt, Net (1)

 

$

(1,791

)

 

$

9,627

 

 

$

11,929

 

% of Same Store Residential Revenues

 

 

(0.3

%)

 

 

1.6

%

 

 

2.2

%

(1)

Bad Debt, Net benefited from additional resident payments due to governmental rental assistance programs of approximately $14.7 million and $9.6 million during the second quarter of 2022 and first quarter of 2022, respectively.

Equity Residential

Second Quarter 2022 vs. Second Quarter 2021

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Year's Quarter

 

Markets/Metro Areas

 

Apartment

Units

 

 

Q2 2022

% of

Actual

NOI

 

 

Q2 2022

Average

Rental

Rate

 

 

Q2 2022

Weighted

Average

Physical

Occupancy %

 

 

Q2 2022

Turnover

 

 

Revenues

 

 

Expenses

 

 

NOI

 

 

Average

Rental

Rate

 

 

Physical

Occupancy

 

 

Turnover

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

15,259

 

 

 

20.9

%

 

$

2,815

 

 

 

96.7

%

 

 

9.2

%

 

 

17.9

%

(1)

 

3.3

%

 

 

24.9

%

 

 

17.6

%

 

 

0.3

%

 

 

(1.3

%)

Orange County

 

 

4,028

 

 

 

5.8

%

 

 

2,659

 

 

 

97.2

%

 

 

8.8

%

 

 

17.2

%

(1)

 

4.7

%

 

 

20.9

%

 

 

17.9

%

 

 

(0.7

%)

 

 

0.5

%

San Diego

 

 

2,706

 

 

 

3.9

%

 

 

2,719

 

 

 

97.4

%

 

 

9.5

%

 

 

11.9

%

 

 

1.8

%

 

 

15.0

%

 

 

12.9

%

 

 

(0.8

%)

 

 

(0.6

%)

Subtotal – Southern California

 

 

21,993

 

 

 

30.6

%

 

 

2,775

 

 

 

96.9

%

 

 

9.2

%

 

 

17.0

%

 

 

3.3

%

 

 

22.8

%

 

 

17.1

%

 

 

0.0

%

 

 

(0.9

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

11,366

 

 

 

17.4

%

 

 

3,152

 

 

 

96.7

%

 

 

9.4

%

 

 

12.7

%

(1)

 

3.5

%

 

 

16.9

%

 

 

11.0

%

 

 

1.4

%

 

 

(2.0

%)

Washington DC

 

 

14,322

 

 

 

15.8

%

 

 

2,432

 

 

 

96.8

%

 

 

11.4

%

 

 

5.5

%

 

 

7.9

%

 

 

4.4

%

 

 

5.0

%

 

 

0.5

%

 

 

(0.5

%)

New York

 

 

8,991

 

 

 

13.6

%

 

 

3,995

 

 

 

97.1

%

 

 

11.8

%

 

 

19.8

%

 

 

0.7

%

 

 

41.4

%

 

 

17.5

%

 

 

2.0

%

 

 

1.7

%

Seattle

 

 

9,331

 

 

 

11.1

%

 

 

2,476

 

 

 

95.3

%

 

 

14.6

%

 

 

11.9

%

 

 

(2.3

%)

 

 

18.6

%

 

 

12.2

%

 

 

(0.3

%)

 

 

0.9

%

Boston

 

 

6,430

 

 

 

9.7

%

 

 

3,153

 

 

 

96.8

%

 

 

11.9

%

 

 

12.6

%

 

 

5.4

%

 

 

15.9

%

 

 

11.6

%

 

 

0.8

%

 

 

0.1

%

Denver

 

 

1,624

 

 

 

1.8

%

 

 

2,277

 

 

 

96.8

%

 

 

18.2

%

 

 

12.8

%

 

 

7.8

%

 

 

14.8

%

 

 

13.0

%

 

 

(0.2

%)

 

 

2.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

74,057

 

 

 

100.0

%

 

$

2,900

 

 

 

96.7

%

 

 

11.1

%

 

 

13.7

%

(2)

 

3.1

%

 

 

19.2

%

 

 

13.0

%

 

 

0.6

%

 

 

(0.3

%)

(1)

Excluding the positive impact of Bad Debt, Net which was primarily driven by receipt of governmental rental assistance, same store revenue growth would have been 8.8%, 12.8% and 9.8% for Los Angeles, Orange County and San Francisco, respectively.

(2)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 12.8% in the second quarter of 2022 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 six months ended June 30, 2022.

Equity Residential

Second Quarter 2022 vs. First Quarter 2022

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Quarter

 

Markets/Metro Areas

 

Apartment

Units

 

 

Q2 2022

% of

Actual

NOI

 

 

Q2 2022

Average

Rental

Rate

 

 

Q2 2022

Weighted

Average

Physical

Occupancy %

 

 

Q2 2022

Turnover

 

 

Revenues

 

 

Expenses

 

 

NOI

 

 

Average

Rental

Rate

 

 

Physical

Occupancy

 

 

Turnover

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

15,259

 

 

 

20.2

%

 

$

2,815

 

 

 

96.7

%

 

 

9.2

%

 

 

8.9

%

(1)

 

(3.0

%)

 

 

14.5

%

 

 

8.9

%

 

 

0.0

%

 

 

0.9

%

Orange County

 

 

4,028

 

 

 

5.6

%

 

 

2,659

 

 

 

97.2

%

 

 

8.8

%

 

 

8.6

%

(1)

 

(0.7

%)

 

 

11.3

%

 

 

8.5

%

 

 

0.1

%

 

 

2.5

%

San Diego

 

 

2,706

 

 

 

3.8

%

 

 

2,719

 

 

 

97.4

%

 

 

9.5

%

 

 

2.5

%

 

 

(6.2

%)

 

 

5.2

%

 

 

2.1

%

 

 

0.5

%

 

 

0.6

%

Subtotal – Southern California

 

 

21,993

 

 

 

29.6

%

 

 

2,775

 

 

 

96.9

%

 

 

9.2

%

 

 

8.1

%

 

 

(3.0

%)

 

 

12.6

%

 

 

8.0

%

 

 

0.1

%

 

 

1.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

11,366

 

 

 

16.9

%

 

 

3,152

 

 

 

96.7

%

 

 

9.4

%

 

 

4.8

%

(1)

 

(4.7

%)

 

 

9.1

%

 

 

4.5

%

 

 

0.3

%

 

 

0.0

%

Washington DC

 

 

14,535

 

 

 

15.4

%

 

 

2,427

 

 

 

96.8

%

 

 

11.4

%

 

 

2.5

%

 

 

1.0

%

 

 

3.3

%

 

 

2.6

%

 

 

(0.1

%)

 

 

3.2

%

New York

 

 

8,991

 

 

 

13.1

%

 

 

3,995

 

 

 

97.1

%

 

 

11.8

%

 

 

6.9

%

 

 

(5.1

%)

 

 

19.0

%

 

 

6.9

%

 

 

0.1

%

 

 

3.5

%

Seattle

 

 

9,524

 

 

 

11.0

%

 

 

2,478

 

 

 

95.3

%

 

 

14.6

%

 

 

4.5

%

 

 

1.4

%

 

 

5.8

%

 

 

3.8

%

 

 

0.7

%

 

 

3.2

%

Boston

 

 

6,700

 

 

 

9.7

%

 

 

3,133

 

 

 

96.8

%

 

 

12.0

%

 

 

4.1

%

 

 

(5.3

%)

 

 

8.7

%

 

 

3.0

%

 

 

1.0

%

 

 

4.4

%

Denver

 

 

2,223

 

 

 

2.4

%

 

 

2,289

 

 

 

96.6

%

 

 

18.4

%

 

 

2.8

%

 

 

(2.7

%)

 

 

5.1

%

 

 

2.7

%

 

 

(0.1

%)

 

 

7.8

%

Other Expansion Markets

 

 

2,776

 

 

 

1.9

%

 

 

1,870

 

 

 

96.7

%

 

 

13.5

%

 

 

2.2

%

 

 

(0.6

%)

 

 

4.5

%

 

 

1.9

%

 

 

0.1

%

 

 

2.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

78,108

 

 

 

100.0

%

 

$

2,855

 

 

 

96.7

%

 

 

11.2

%

 

 

5.4

%

(2)

 

(2.8

%)

 

 

9.8

%

 

 

5.2

%

 

 

0.3

%

 

 

2.4

%

(1)

Excluding the positive impact of Bad Debt, Net which was primarily driven by receipt of governmental rental assistance, same store revenue growth would have been 2.2%, 3.1% and 2.6% for Los Angeles, Orange County and San Francisco, respectively.

(2)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 5.1% in the second quarter of 2022 compared to the first quarter of 2022. See page 12 for additional detail and reconciliations.

 

 

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the six months ended June 30, 2022.

 

 

Equity Residential

June YTD 2022 vs. June YTD 2021

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Year

 

Markets/Metro Areas

 

Apartment

Units

 

 

June YTD 22

% of

Actual

NOI

 

 

June YTD 22

Average

Rental

Rate

 

 

June YTD 22

Weighted

Average

Physical

Occupancy %

 

 

June YTD 22

Turnover

 

 

Revenues

 

 

Expenses

 

 

NOI

 

 

Average

Rental

Rate

 

 

Physical

Occupancy

 

 

Turnover

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

15,259

 

 

 

20.5

%

 

$

2,700

 

 

 

96.7

%

 

 

17.5

%

 

 

13.3

%

(1)

 

3.0

%

 

 

18.3

%

 

 

12.6

%

 

 

0.6

%

 

 

(3.0

%)

Orange County

 

 

4,028

 

 

 

5.8

%

 

 

2,555

 

 

 

97.2

%

 

 

15.1

%

 

 

14.3

%

(1)

 

3.2

%

 

 

17.7

%

 

 

14.6

%

 

 

(0.2

%)

 

 

(1.0

%)

San Diego

 

 

2,706

 

 

 

4.0

%

 

 

2,693

 

 

 

97.1

%

 

 

18.4

%

 

 

11.8

%

 

 

4.1

%

 

 

14.3

%

 

 

12.6

%

 

 

(0.6

%)

 

 

(2.1

%)

Subtotal – Southern California

 

 

21,993

 

 

 

30.3

%

 

 

2,672

 

 

 

96.8

%

 

 

17.2

%

 

 

13.3

%

 

 

3.2

%

 

 

17.7

%

 

 

12.9

%

 

 

0.3

%

 

 

(2.5

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

11,366

 

 

 

17.5

%

 

 

3,085

 

 

 

96.6

%

 

 

18.8

%

 

 

9.3

%

(1)

 

3.6

%

 

 

12.0

%

 

 

6.9

%

 

 

2.1

%

 

 

(4.2

%)

Washington DC

 

 

14,322

 

 

 

16.2

%

 

 

2,402

 

 

 

96.8

%

 

 

19.5

%

 

 

4.3

%

 

 

5.9

%

 

 

3.4

%

 

 

3.5

%

 

 

0.7

%

 

 

(2.0

%)

New York

 

 

8,991

 

 

 

13.1

%

 

 

3,867

 

 

 

97.1

%

 

 

20.1

%

 

 

16.8

%

 

 

1.5

%

 

 

35.0

%

 

 

12.1

%

 

 

4.0

%

 

 

1.6

%

Seattle

 

 

9,331

 

 

 

11.3

%

 

 

2,431

 

 

 

95.0

%

 

 

26.1

%

 

 

8.5

%

 

 

(3.9

%)

 

 

14.4

%

 

 

9.2

%

 

 

(0.6

%)

 

 

1.2

%

Boston

 

 

6,430

 

 

 

9.7

%

 

 

3,104

 

 

 

96.4

%

 

 

19.5

%

 

 

10.1

%

 

 

5.2

%

 

 

12.5

%

 

 

9.3

%

 

 

0.8

%

 

 

(1.2

%)

Denver

 

 

1,624

 

 

 

1.9

%

 

 

2,242

 

 

 

97.1

%

 

 

28.7

%

 

 

12.8

%

 

 

6.9

%

 

 

15.2

%

 

 

12.1

%

 

 

0.5

%

 

 

1.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

74,057

 

 

 

100.0

%

 

$

2,827

 

 

 

96.5

%

 

 

19.8

%

 

 

10.8

%

(2)

 

2.8

%

 

 

15.1

%

 

 

9.6

%

 

 

1.0

%

 

 

(1.5

%)

(1)

Excluding the positive impact of Bad Debt, Net which was primarily driven by receipt of governmental rental assistance, same store revenue growth would have been 7.9%, 12.1% and 7.6% for Los Angeles, Orange County and San Francisco, respectively.

(2)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 11.0% in the six months ended June 30, 2022 compared to the six months ended June 30, 2021. See page 12 for additional detail and reconciliations.

 

 

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the six months ended June 30, 2022.

Equity Residential

 

Same Store Residential Net Effective Lease Pricing Statistics

For 74,057 Same Store Apartment Units

 

 

 

New Lease Change (1)

 

 

Renewal Rate Achieved (1)

 

 

Blended Rate (1)

 

Markets/Metro Areas

 

Q2 2022

 

 

Q1 2022

 

 

Q2 2022

 

 

Q1 2022

 

 

Q2 2022

 

 

Q1 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Southern California

 

 

15.7

%

 

 

14.6

%

 

 

7.1

%

 

 

7.2

%

 

 

10.6

%

 

 

10.0

%

San Francisco

 

 

14.9

%

 

 

12.7

%

 

 

9.1

%

 

 

12.6

%

 

 

11.7

%

 

 

12.6

%

Washington DC

 

 

11.2

%

 

 

9.0

%

 

 

8.3

%

 

 

7.0

%

 

 

9.6

%

 

 

7.8

%

New York

 

 

37.9

%

 

 

29.7

%

 

 

19.2

%

 

 

21.4

%

 

 

27.2

%

 

 

24.7

%

Seattle

 

 

17.5

%

 

 

13.0

%

 

 

13.1

%

 

 

16.4

%

 

 

15.3

%

 

 

14.6

%

Boston

 

 

17.8

%

 

 

13.1

%

 

 

12.4

%

 

 

15.6

%

 

 

14.9

%

 

 

14.4

%

Denver

 

 

12.7

%

 

 

11.0

%

 

 

12.3

%

 

 

11.8

%

 

 

12.5

%

 

 

11.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

19.2

%

 

 

15.3

%

 

 

11.2

%

 

 

12.0

%

 

 

14.8

%

 

 

13.3

%

(1)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions. See page 3 for July 2022 preliminary data.

Equity Residential

 

Second Quarter 2022 vs. Second Quarter 2021

Total Same Store Operating Expenses Including 74,057 Same Store Apartment Units

($ in thousands)

 

 

 

Q2 2022

 

 

Q2 2021

 

 

$

Change (1)

 

 

%

Change

 

 

% of

Q2 2022

Operating

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate taxes

 

$

86,191

 

 

$

86,026

 

 

$

165

 

 

 

0.2

%

 

 

42.8

%

On-site payroll

 

 

37,357

 

 

 

38,826

 

 

 

(1,469

)

 

 

(3.8

%)

 

 

18.5

%

Utilities

 

 

30,754

 

 

 

27,367

 

 

 

3,387

 

 

 

12.4

%

 

 

15.3

%

Repairs and maintenance

 

 

26,457

 

 

 

23,646

 

 

 

2,811

 

 

 

11.9

%

 

 

13.1

%

Insurance

 

 

7,185

 

 

 

6,613

 

 

 

572

 

 

 

8.6

%

 

 

3.6

%

Leasing and advertising

 

 

2,420

 

 

 

2,670

 

 

 

(250

)

 

 

(9.4

%)

 

 

1.2

%

Other on-site operating expenses

 

 

11,001

 

 

 

10,180

 

 

 

821

 

 

 

8.1

%

 

 

5.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Same Store Operating Expenses (2)

(includes Residential and Non-Residential)

 

$

201,365

 

 

$

195,328

 

 

$

6,037

 

 

 

3.1

%

 

 

100.0

%

June YTD 2022 vs. June YTD 2021

Total Same Store Operating Expenses Including 74,057 Same Store Apartment Units

($ in thousands)

 

 

 

YTD 2022

 

 

YTD 2021

 

 

$

Change (1)

 

 

%

Change

 

 

% of

YTD 2022

Operating

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate taxes

 

$

172,621

 

 

$

172,052

 

 

$

569

 

 

 

0.3

%

 

 

42.2

%

On-site payroll

 

 

77,191

 

 

 

80,091

 

 

 

(2,900

)

 

 

(3.6

%)

 

 

18.9

%

Utilities

 

 

64,426

 

 

 

57,379

 

 

 

7,047

 

 

 

12.3

%

 

 

15.8

%

Repairs and maintenance

 

 

51,689

 

 

 

47,307

 

 

 

4,382

 

 

 

9.3

%

 

 

12.6

%

Insurance

 

 

14,359

 

 

 

13,226

 

 

 

1,133

 

 

 

8.6

%

 

 

3.5

%

Leasing and advertising

 

 

4,641

 

 

 

5,390

 

 

 

(749

)

 

 

(13.9

%)

 

 

1.1

%

Other on-site operating expenses

 

 

23,922

 

 

 

22,317

 

 

 

1,605

 

 

 

7.2

%

 

 

5.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Same Store Operating Expenses (2)

(includes Residential and Non-Residential)

 

$

408,849

 

 

$

397,762

 

 

$

11,087

 

 

<