Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Equity Residential Reports Fourth Quarter 2023 Results By: Equity Residential via Business Wire January 30, 2024 at 16:15 PM EST Provides 2024 Guidance Equity Residential (NYSE: EQR) today reported results for the quarter and year ended December 31, 2023. Fourth Quarter 2023 Results All per share results are reported as available to common shares/units on a diluted basis. Quarter Ended December 31, 2023 2022 $ Change % Change Earnings Per Share (EPS) $ 0.82 $ 0.42 $ 0.40 95.2 % Funds from Operations (FFO) per share $ 1.00 $ 0.97 $ 0.03 3.1 % Normalized FFO (NFFO) per share $ 1.00 $ 0.94 $ 0.06 6.4 % Year Ended December 31, 2023 2022 $ Change % Change Earnings Per Share (EPS) $ 2.20 $ 2.05 $ 0.15 7.3 % Funds from Operations (FFO) per share $ 3.75 $ 3.53 $ 0.22 6.2 % Normalized FFO (NFFO) per share $ 3.78 $ 3.52 $ 0.26 7.4 % Recent Highlights Same store revenue increased 3.9% for the fourth quarter of 2023 compared to the fourth quarter of 2022, driven by strong demand. The Company has provided guidance for the full year 2024 with same store revenue growth expected to be between 2.0% and 3.0%. During the fourth quarter of 2023, the Company sold three properties located in our West Coast markets (San Francisco, Seattle and Los Angeles), consisting of 499 apartment units, for an aggregate sale price of approximately $184.5 million. During the fourth quarter of 2023, the Company repurchased and retired 864,386 of its common shares, at a weighted average purchase price of $56.79 per share, for an aggregate purchased amount of approximately $49.1 million. Following this repurchase activity, the Company’s Board of Trustees approved replenishing the Company’s share repurchase program authorization back to its original 13.0 million shares. “We are pleased with our fourth quarter results as we finished the year in line with our expectations. I want to thank my colleagues across Equity Residential for their hard work and dedication to our customers and shareholders,” said Mark J. Parrell, Equity Residential’s President and CEO. “We enter 2024 well-positioned to post solid results on the operations side despite expectations of a slowing economy with continuing high employment levels in our target affluent renter demographic and a manageable apartment supply backdrop in our existing predominantly coastal footprint versus oversupplied Sunbelt markets. We are optimistic that in 2024 we will see a variety of favorable opportunities to deploy capital and have a team and a balance sheet well-prepared to do so.” Full Year 2024 Guidance The Company has provided guidance for its full year 2024 same store operating performance, EPS, FFO per share, Normalized FFO per share and transactions as listed below: Same Store (includes Residential and Non-Residential): Physical Occupancy 95.9% Revenue change 2.0% to 3.0% Expense change 3.5% to 4.5% Net Operating Income (NOI) change 1.0% to 2.6% EPS $2.91 to $3.01 FFO per share $3.74 to $3.84 Normalized FFO per share $3.80 to $3.90 Transactions: Consolidated rental acquisitions $1.0B Consolidated rental dispositions $1.0B Transaction Accretion (Dilution) (25 basis points) The difference between the Company's full year 2023 actual EPS of $2.20 and the full year 2024 EPS guidance midpoint of $2.96 is due primarily to higher expected property sale gains and the items described below. The difference between the Company's full year 2023 actual FFO of $3.75 per share and the full year 2024 FFO guidance midpoint of $3.79 per share is due primarily to lower expected non-operating gains on sale offset by the items described below. The difference between the Company's full year 2023 actual Normalized FFO of $3.78 per share and the full year 2024 Normalized FFO guidance midpoint of $3.85 per share is due primarily to: Expected Positive/(Negative) Impact Full Year 2024 vs. Full Year 2023 Residential same store NOI $ 0.09 Lease-Up NOI 0.01 2024 and 2023 transaction activity impact on NOI, net (0.03 ) Corporate overhead (1) (0.01 ) Other items 0.01 Net $ 0.07 (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. Results Per Share The change in EPS for the quarter ended December 31, 2023 compared to the same period of 2022 is due primarily to higher property sale gains in the current period, the various adjustment items listed on page 27 of this release and the items described below. The change in EPS for the year end December 31, 2023 compared to the same period of 2022 is due primarily to lower property sale gains in the current period, 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 year ended December 31, 2023 compared to the same periods of 2022 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 Fourth Quarter 2023 vs. Fourth Quarter 2022 Full Year 2023 vs. Full Year 2022 Residential same store NOI $ 0.06 $ 0.28 Lease-Up NOI – 0.03 2023 and 2022 transaction activity impact on NOI, net – (0.02 ) Interest expense, net (0.01 ) 0.02 Corporate overhead – (0.03 ) Other items 0.01 (0.02 ) Net $ 0.06 $ 0.26 Same Store Results The following table shows the total same store results for the periods presented. Fourth Quarter 2023 vs. Fourth Quarter 2022 Fourth Quarter 2023 vs. Third Quarter 2023 Full Year 2023 vs. Full Year 2022 Apartment Units 77,676 78,163 76,297 Physical Occupancy 95.8% vs. 95.8% 95.8% vs. 96.0% 95.9% vs. 96.3% Revenues 3.9% 0.6% 5.6% Expenses 1.3% (3.6%) 4.3% NOI 5.0% 2.5% 6.2% 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 3.6% of total revenues for the year ended December 31, 2023. 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. Fourth Quarter 2023 vs. Fourth Quarter 2022 Fourth Quarter 2023 vs. Third Quarter 2023 Full Year 2023 vs. Full Year 2022 % Change % Change % Change Same Store Residential Revenues- comparable period Lease rates 3.5 % 0.3 % 6.2 % Leasing Concessions (0.4 %) (0.1 %) (0.2 %) Vacancy gain (loss) 0.0 % 0.1 % (0.5 %) Bad Debt, Net (1) 0.4 % (0.1 %) (0.4 %) Other (2) 0.5 % 0.1 % 0.6 % Same Store Residential Revenues- current period 4.0 % 0.3 % 5.7 % (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. The comparable full year 2023 period change in Bad Debt, Net was negatively impacted by the much higher governmental rental assistance received in 2022 versus 2023. 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 76,297 same store apartment units): January 2024 (1) Q4 2023 Q3 2023 Physical Occupancy 96.2% 95.8% 96.0% Percentage of Residents Renewing by quarter/month 61.0% 59.0% 54.0% New Lease Change (3.7%) (4.5%) 0.5% Renewal Rate Achieved 4.9% 5.1% 5.5% Blended Rate 1.0% 0.8% 3.1% (1) January 2024 results are preliminary as of January 25th and reflect the 2024 annual same store set including 77,472 apartment units. Investment Activity The Company did not acquire any operating properties during the fourth quarter of 2023. During the full year of 2023, the Company has acquired four operating properties, consisting of 1,183 apartment units, for an aggregate purchase price of approximately $366.3 million at a weighted average Acquisition Cap Rate of 5.5%. The average age of the properties acquired in 2023 was approximately 1 year. During the fourth quarter of 2023, the Company sold three properties located in our West Coast markets (San Francisco, Seattle and Los Angeles), consisting of 499 apartment units, for an aggregate sale price of approximately $184.5 million at a weighted average Disposition Yield of 5.8%, generating an Unlevered IRR of 14.4%. The average age of the properties sold in the fourth quarter of 2023 was approximately 40 years. During the full year of 2023, the Company sold 11 properties, consisting of 912 apartment units, for an aggregate sale price of approximately $379.9 million at a weighted average Disposition Yield of 5.5%, generating an Unlevered IRR of 11.4%. The average age of the properties sold in 2023 was approximately 30 years. Subsequent to the end of the fourth quarter of 2023, the Company sold a property in each of the Boston and Orange County markets, consisting of a total of 404 apartment units, for an aggregate sale price of approximately $189.0 million at a weighted average Disposition Yield of 5.6%. The average age of the properties sold subsequent to the end of the fourth quarter of 2023 was approximately 41 years. In 2023, the Company invested $282.8 million in Capital Expenditures to Real Estate for Same Store Properties. Approximately 40% of this spend was NOI-Enhancing. Of that amount, $79.3 million for 2,799 same store apartment units represented Renovation Expenditures with the remainder concentrated in sustainability and property-level technology spend. We expect a similar percentage of 2024 Capital Expenditures to Real Estate for Same Store Properties to be NOI-Enhancing. Capital Markets Activity During the fourth quarter of 2023, the Company repurchased and retired 864,386 of its common shares, at a weighted average purchase price of $56.79 per share, for an aggregate purchased amount of approximately $49.1 million. Following this repurchase activity, the Company’s Board of Trustees approved replenishing the Company’s share repurchase program authorization back to its original 13.0 million shares. First Quarter 2024 Guidance The Company has established guidance ranges for the first quarter of 2024 EPS, FFO per share and Normalized FFO per share as listed below: Q1 2024 Guidance EPS $0.77 to $0.81 FFO per share $0.87 to $0.91 Normalized FFO per share $0.88 to $0.92 The difference between the fourth quarter of 2023 actual EPS of $0.82 and the first quarter of 2024 EPS guidance midpoint of $0.79 is due primarily to higher expected property sale gains and the items described below. The difference between the fourth quarter of 2023 actual FFO of $1.00 per share and the first quarter of 2024 FFO guidance midpoint of $0.89 per share is due primarily to the items described below. The difference between the fourth quarter of 2023 actual Normalized FFO of $1.00 per share and the first quarter of 2024 Normalized FFO guidance midpoint of $0.90 per share is due primarily to: Expected Positive/(Negative) Impact First Quarter 2024 vs. Fourth Quarter 2023 Residential same store NOI (1) $ (0.05 ) 2024 and 2023 transaction activity impact on NOI, net (0.01 ) Corporate overhead (0.03 ) Other items (0.01 ) Net $ (0.10 ) Residential same store NOI impact is primarily driven by higher expected real estate taxes and utilities in the first quarter of 2024 versus the fourth quarter of 2023. This pattern of higher operating expenses is typical between the fourth quarter of the current year and the first quarter of the following year. 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 302 properties consisting of 80,191 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, Wednesday, January 31, 2024 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) Year Ended December 31, Quarter Ended December 31, 2023 2022 2023 2022 REVENUES Rental income $ 2,873,964 $ 2,735,180 $ 727,500 $ 699,703 EXPENSES Property and maintenance 514,575 483,865 123,138 118,588 Real estate taxes and insurance 412,114 388,412 99,507 85,513 Property management 119,804 110,304 29,490 27,269 General and administrative 60,716 58,710 11,581 11,677 Depreciation 888,709 882,168 226,788 214,272 Total expenses 1,995,918 1,923,459 490,504 457,319 Net gain (loss) on sales of real estate properties 282,539 304,325 155,505 (21 ) Operating income 1,160,585 1,116,046 392,501 242,363 Interest and other income 22,345 2,193 11,049 (2,651 ) Other expenses (29,419 ) (13,664 ) (8,902 ) (4,473 ) Interest: Expense incurred, net (269,556 ) (282,920 ) (68,674 ) (65,827 ) Amortization of deferred financing costs (8,941 ) (8,729 ) (1,918 ) (2,308 ) Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of land parcels 875,014 812,926 324,056 167,104 Income and other tax (expense) benefit (1,148 ) (900 ) (256 ) (175 ) Income (loss) from investments in unconsolidated entities (5,378 ) (5,031 ) (1,531 ) (1,575 ) Net income 868,488 806,995 322,269 165,354 Net (income) loss attributable to Noncontrolling Interests: Operating Partnership (26,710 ) (26,310 ) (9,536 ) (5,286 ) Partially Owned Properties (6,340 ) (3,774 ) (1,041 ) (1,048 ) Net income attributable to controlling interests 835,438 776,911 311,692 159,020 Preferred distributions (3,090 ) (3,090 ) (772 ) (772 ) Net income available to Common Shares $ 832,348 $ 773,821 $ 310,920 $ 158,248 Earnings per share – basic: Net income available to Common Shares $ 2.20 $ 2.06 $ 0.82 $ 0.42 Weighted average Common Shares outstanding 378,773 376,209 379,247 377,689 Earnings per share – diluted: Net income available to Common Shares $ 2.20 $ 2.05 $ 0.82 $ 0.42 Weighted average Common Shares outstanding 390,897 389,450 390,787 390,245 Distributions declared per Common Share outstanding $ 2.65 $ 2.50 $ 0.6625 $ 0.625 Equity Residential Consolidated Statements of Funds From Operations and Normalized Funds From Operations (Amounts in thousands except per share and Unit data) (Unaudited) Year Ended December 31, Quarter Ended December 31, 2023 2022 2023 2022 Net income $ 868,488 $ 806,995 $ 322,269 $ 165,354 Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties (6,340 ) (3,774 ) (1,041 ) (1,048 ) Preferred distributions (3,090 ) (3,090 ) (772 ) (772 ) Net income available to Common Shares and Units 859,058 800,131 320,456 163,534 Adjustments: Depreciation 888,709 882,168 226,788 214,272 Depreciation – Non-real estate additions (4,268 ) (4,306 ) (977 ) (1,117 ) Depreciation – Partially Owned Properties (2,130 ) (2,640 ) (531 ) (543 ) Depreciation – Unconsolidated Properties 2,860 2,898 939 1,001 Net (gain) loss on sales of unconsolidated entities - operating assets — (9 ) — — Net (gain) loss on sales of real estate properties (282,539 ) (304,325 ) (155,505 ) 21 Noncontrolling Interests share of gain (loss) on sales of real estate properties 2,336 — — — FFO available to Common Shares and Units 1,464,026 1,373,917 391,170 377,168 Adjustments (see note for additional detail): Write-off of pursuit costs 3,647 4,780 908 1,484 Debt extinguishment and preferred share redemption (gains) losses 1,143 4,664 — 348 Non-operating asset (gains) losses (13,323 ) 2,368 (8,588 ) 3,542 Other miscellaneous items 21,588 (13,901 ) 6,757 (15,733 ) Normalized FFO available to Common Shares and Units $ 1,477,081 $ 1,371,828 $ 390,247 $ 366,809 FFO $ 1,467,116 $ 1,377,007 $ 391,942 $ 377,940 Preferred distributions (3,090 ) (3,090 ) (772 ) (772 ) FFO available to Common Shares and Units $ 1,464,026 $ 1,373,917 $ 391,170 $ 377,168 FFO per share and Unit – basic $ 3.75 $ 3.54 $ 1.00 $ 0.97 FFO per share and Unit – diluted $ 3.75 $ 3.53 $ 1.00 $ 0.97 Normalized FFO $ 1,480,171 $ 1,374,918 $ 391,019 $ 367,581 Preferred distributions (3,090 ) (3,090 ) (772 ) (772 ) Normalized FFO available to Common Shares and Units $ 1,477,081 $ 1,371,828 $ 390,247 $ 366,809 Normalized FFO per share and Unit – basic $ 3.79 $ 3.54 $ 1.00 $ 0.94 Normalized FFO per share and Unit – diluted $ 3.78 $ 3.52 $ 1.00 $ 0.94 Weighted average Common Shares and Units outstanding – basic 389,954 388,045 389,844 389,357 Weighted average Common Shares and Units outstanding – diluted 390,897 389,450 390,787 390,245 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) December 31, December 31, 2023 2022 ASSETS Land $ 5,581,876 $ 5,580,878 Depreciable property 22,938,426 22,334,369 Projects under development 78,036 112,940 Land held for development 114,300 60,567 Investment in real estate 28,712,638 28,088,754 Accumulated depreciation (9,810,337 ) (9,027,850 ) Investment in real estate, net 18,902,301 19,060,904 Investments in unconsolidated entities1 282,049 279,024 Cash and cash equivalents 50,743 53,869 Restricted deposits 89,252 83,303 Right-of-use assets 457,266 462,956 Other assets 252,953 278,206 Total assets $ 20,034,564 $ 20,218,262 LIABILITIES AND EQUITY Liabilities: Mortgage notes payable, net $ 1,632,902 $ 1,953,438 Notes, net 5,348,417 5,342,329 Line of credit and commercial paper 409,131 129,955 Accounts payable and accrued expenses 104,430 96,028 Accrued interest payable 65,716 66,310 Lease liabilities 311,640 308,748 Other liabilities 255,543 306,941 Security deposits 69,178 68,940 Distributions payable 259,231 244,621 Total liabilities 8,456,188 8,517,310 Commitments and contingencies Redeemable Noncontrolling Interests – Operating Partnership 289,248 318,273 Equity: Shareholders' equity: Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized; 745,600 shares issued and outstanding as of December 31, 2023 and December 31, 2022 37,280 37,280 Common Shares of beneficial interest, $0.01 par value; 1,000,000,000 shares authorized; 379,291,417 shares issued and outstanding as of December 31, 2023 and 378,429,708 shares issued and outstanding as of December 31, 2022 3,793 3,784 Paid in capital 9,601,866 9,476,085 Retained earnings 1,437,185 1,658,837 Accumulated other comprehensive income (loss) 5,704 (2,547 ) Total shareholders’ equity 11,085,828 11,173,439 Noncontrolling Interests: Operating Partnership 202,306 209,961 Partially Owned Properties 994 (721 ) Total Noncontrolling Interests 203,300 209,240 Total equity 11,289,128 11,382,679 Total liabilities and equity $ 20,034,564 $ 20,218,262 1 Includes $220.2 million and $218.0 million in unconsolidated development projects as of December 31, 2023 and December 31, 2022, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects. Equity Residential Portfolio Summary As of December 31, 2023 % of Stabilized Average Apartment Budgeted Rental Markets/Metro Areas Properties Units NOI Rate Established Markets: Los Angeles 58 14,732 17.1 % $ 2,929 Orange County 13 4,028 5.4 % 2,873 San Diego 12 2,878 4.0 % 3,108 Subtotal – Southern California 83 21,638 26.5 % 2,942 Washington, D.C. 48 15,028 16.3 % 3,303 San Francisco 43 11,667 15.4 % 2,657 New York 34 8,536 14.1 % 4,566 Boston 27 7,170 11.8 % 3,574 Seattle 44 9,267 10.4 % 2,561 Subtotal – Established Markets 279 73,306 94.5 % 3,145 Expansion Markets: Denver 9 2,792 2.8 % 2,411 Atlanta 7 2,111 1.6 % 2,169 Dallas/Ft. Worth 4 1,241 0.7 % 1,935 Austin 3 741 0.4 % 1,819 Subtotal – Expansion Markets 23 6,885 5.5 % 2,188 Total 302 80,191 100.0 % $ 3,063 Properties Apartment Units Wholly Owned Properties 288 77,131 Partially Owned Properties – Consolidated 14 3,060 302 80,191 Note: Projects under development are not included in the Portfolio Summary until construction has been completed. Equity Residential Portfolio Rollforward Q4 2023 ($ in thousands) Apartment Disposition Properties Units Sales Price Yield 9/30/2023 305 80,683 Dispositions: Consolidated Rental Properties (3 ) (499 ) $ (184,493 ) (5.8 %) Configuration Changes — 7 12/31/2023 302 80,191 Portfolio Rollforward 2023 ($ in thousands) Apartment Purchase Acquisition Properties Units Price Cap Rate 12/31/2022 308 79,597 Acquisitions: Consolidated Rental Properties 2 577 $ 189,734 5.1 % Consolidated Rental Properties – Not Stabilized (1) 2 606 $ 176,600 5.9 % Disposition Sales Price Yield Dispositions: Consolidated Rental Properties (11 ) (912 ) $ (379,893 ) (5.5 %) Completed Developments – Consolidated 1 312 Configuration Changes — 11 12/31/2023 302 80,191 (1) The Company acquired two properties in the Atlanta market during the year ended December 31, 2023 that are in lease-up and are expected to stabilize in their second year of ownership at the weighted average Acquisition Cap Rate listed above. Equity Residential Fourth Quarter 2023 vs. Fourth Quarter 2022 Same Store Results/Statistics Including 77,676 Same Store Apartment Units ($ in thousands except for Average Rental Rate) Fourth Quarter 2023 Fourth Quarter 2022 Residential % Change Non- Residential % Change Total % Change Residential Non- Residential Total Revenues $ 685,836 (1) 4.0% $ 25,920 (0.6%) $ 711,756 3.9% Revenues $ 659,233 $ 26,084 $ 685,317 Expenses $ 209,164 1.1% $ 7,245 7.7% $ 216,409 1.3% Expenses $ 206,885 $ 6,728 $ 213,613 NOI $ 476,672 5.4% $ 18,675 (3.5%) $ 495,347 5.0% NOI $ 452,348 $ 19,356 $ 471,704 Average Rental Rate $ 3,073 4.0% Average Rental Rate $ 2,954 Physical Occupancy 95.8 % 0.0% Physical Occupancy 95.8 % Turnover 9.4 % (0.1%) Turnover 9.5 % Fourth Quarter 2023 vs. Third Quarter 2023 Same Store Results/Statistics Including 78,163 Same Store Apartment Units ($ in thousands except for Average Rental Rate) Fourth Quarter 2023 Third Quarter 2023 Residential % Change Non- Residential % Change Total % Change Residential Non- Residential Total Revenues $ 689,458 (1) 0.3% $ 25,920 8.1% $ 715,378 0.6% Revenues $ 687,259 $ 23,971 (2) $ 711,230 Expenses $ 210,167 (3.9%) $ 7,268 5.2% $ 217,435 (3.6%) Expenses $ 218,723 $ 6,906 $ 225,629 NOI $ 479,291 2.3% $ 18,652 9.3% $ 497,943 2.5% NOI $ 468,536 $ 17,065 $ 485,601 Average Rental Rate $ 3,071 0.5% Average Rental Rate $ 3,056 Physical Occupancy 95.8 % (0.2%) Physical Occupancy 96.0 % Turnover 9.4 % (4.4%) Turnover 13.8 % 2023 vs. 2022 Same Store Results/Statistics Including 76,297 Same Store Apartment Units ($ in thousands except for Average Rental Rate) 2023 2022 Residential % Change Non- Residential % Change Total % Change Residential Non- Residential Total Revenues $ 2,657,868 (1) 5.7% $ 96,843 (2) 1.9% $ 2,754,711 5.6% Revenues $ 2,514,711 $ 95,055 $ 2,609,766 Expenses $ 846,546 4.1% $ 26,902 8.9% $ 873,448 4.3% Expenses $ 812,894 $ 24,708 $ 837,602 NOI $ 1,811,322 6.4% $ 69,941 (0.6%) $ 1,881,263 6.2% NOI $ 1,701,817 $ 70,347 $ 1,772,164 Average Rental Rate $ 3,029 6.2% Average Rental Rate $ 2,853 Physical Occupancy 95.9 % (0.4%) Physical Occupancy 96.3 % Turnover 43.7 % 0.1% Turnover 43.6 % (1) See page 12 for Same Store Residential Revenues with Leasing Concessions reflected on a cash basis. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail. (2) Includes the negative impact from the non-cash write-off of approximately $1.5 million in straight-line receivables during the third quarter of 2023 due to the bankruptcy of Rite Aid. Equity Residential Same Store Residential Revenues – GAAP to Cash Basis (1) ($ in thousands) Fourth Quarter 2023 vs. Fourth Quarter 2022 Fourth Quarter 2023 vs. Third Quarter 2023 2023 vs. 2022 77,676 Same Store Apartment Units 78,163 Same Store Apartment Units 76,297 Same Store Apartment Units Q4 2023 Q4 2022 Q4 2023 Q3 2023 2023 2022 Same Store Residential Revenues (GAAP Basis) $ 685,836 $ 659,233 $ 689,458 $ 687,259 $ 2,657,868 $ 2,514,711 Leasing Concessions amortized 4,531 2,153 4,822 4,100 12,803 8,711 Leasing Concessions granted (2) (5,074 ) (2,915 ) (5,399 ) (5,427 ) (17,750 ) (6,285 ) Same Store Residential Revenues with Leasing Concessions on a cash basis $ 685,293 $ 658,471 $ 688,881 $ 685,932 $ 2,652,921 $ 2,517,137 % change - GAAP revenue 4.0 % 0.3 % 5.7 % % change - cash revenue 4.1 % 0.4 % 5.4 % (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 and Seattle. Same Store Net Operating Income By Quarter Including 76,297 Same Store Apartment Units ($ in thousands) Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Same store revenues $ 696,250 $ 693,230 $ 688,481 $ 676,750 $ 671,116 Same store expenses 212,250 219,850 215,983 225,365 209,407 Same store NOI (includes Residential and Non-Residential) $ 484,000 $ 473,380 $ 472,498 $ 451,385 $ 461,709 Equity Residential Same Store Resident/Tenant Accounts Receivable Balances Including 76,297 Same Store Apartment Units ($ in thousands) Residential Non-Residential Balance Sheet (Other assets): December 31, 2023 September 30, 2023 December 31, 2023 September 30, 2023 Resident/tenant accounts receivable balances $ 20,910 $ 24,674 $ 2,822 $ 2,714 Allowance for doubtful accounts (15,419 ) (19,462 ) (1,849 ) (1,703 ) Net receivable balances $ 5,491 $ 5,212 $ 973 $ 1,011 Straight-line receivable balances $ 7,944 (1) $ 7,423 $ 11,810 $ 11,800 (2) (1) Total same store Residential Leasing Concessions granted in the fourth quarter of 2023 were approximately $5.0 million. The straight-line receivable balance of $7.9 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in 2024. (2) During the third quarter of 2023, the Company recorded a non-cash write-off of approximately $1.5 million in straight-line receivables due to the bankruptcy of Rite Aid. Same Store Residential Bad Debt Including 76,297 Same Store Apartment Units ($ in thousands) Income Statement (Rental income): Q4 2023 Q3 2023 Q4 2022 2023 2022 Bad debts before governmental rental assistance $ 9,341 $ 8,940 $ 13,574 $ 39,591 $ 58,785 Governmental rental assistance received (368 ) (406 ) (2,275 ) (2,587 ) (32,699 ) Bad Debt, Net $ 8,973 $ 8,534 $ 11,299 $ 37,004 $ 26,086 Bad Debt, Net as a % of Same Store Residential Revenues 1.3 % 1.3 % 1.7 % 1.4 % 1.0 % Equity Residential Fourth Quarter 2023 vs. Fourth Quarter 2022 Same Store Residential Results/Statistics by Market Increase (Decrease) from Prior Year's Quarter Markets/Metro Areas Apartment Units Q4 2023 % of Actual NOI Q4 2023 Average Rental Rate Q4 2023 Weighted Average Physical Occupancy % Q4 2023 Turnover Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Los Angeles 14,135 17.3 % $ 2,909 95.1 % 10.9 % 5.2 % 6.9 % 4.5 % 6.0 % (0.7 %) 0.8 % Orange County 4,028 5.5 % 2,873 96.3 % 8.7 % 6.5 % 4.5 % 7.0 % 7.0 % (0.4 %) 0.0 % San Diego 2,878 4.2 % 3,108 95.3 % 11.3 % 6.6 % 2.8 % 7.8 % 7.4 % (0.7 %) 2.5 % Subtotal – Southern California 21,041 27.0 % 2,929 95.3 % 10.6 % 5.6 % 6.1 % 5.5 % 6.4 % (0.7 %) 0.9 % Washington, D.C. 14,716 16.6 % 2,654 97.0 % 8.2 % 5.3 % (0.2 %) 7.9 % 4.9 % 0.5 % (1.1 %) San Francisco 11,245 15.8 % 3,307 95.4 % 10.6 % 2.1 % 1.2 % 2.4 % 2.3 % (0.2 %) 1.1 % New York 8,536 14.3 % 4,566 96.6 % 6.9 % 4.2 % 0.2 % 7.1 % 4.3 % (0.1 %) (0.7 %) Boston 7,170 11.1 % 3,574 95.8 % 8.6 % 5.8 % 3.8 % 6.6 % 6.0 % (0.1 %) 0.2 % Seattle 9,266 10.2 % 2,561 95.3 % 8.2 % (0.4 %) 0.5 % (0.8 %) (0.8 %) 0.4 % (1.7 %) Denver 2,505 2.5 % 2,417 96.0 % 11.5 % 1.8 % 4.8 % 0.6 % 2.2 % (0.1 %) (0.5 %) Other Expansion Markets 3,197 2.5 % 1,996 95.0 % 13.0 % 3.6 % (23.3 %) 27.6 % 1.0 % 2.2 % 0.0 % Total 77,676 100.0 % $ 3,073 95.8 % 9.4 % 4.0 % 1.1 % 5.4 % 4.0 % 0.0 % (0.1 %) Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.4% of total revenues for the year ended December 31, 2023. Equity Residential Fourth Quarter 2023 vs. Third Quarter 2023 Same Store Residential Results/Statistics by Market Increase (Decrease) from Prior Quarter Markets/Metro Areas Apartment Units Q4 2023 % of Actual NOI Q4 2023 Average Rental Rate Q4 2023 Weighted Average Physical Occupancy % Q4 2023 Turnover Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Los Angeles 14,135 17.1 % $ 2,909 95.1 % 10.9 % (0.3 %) (2.6 %) 0.8 % 0.4 % (0.6 %) (1.4 %) Orange County 4,028 5.5 % 2,873 96.3 % 8.7 % 1.2 % (4.2 %) 2.7 % 1.7 % (0.4 %) (2.2 %) San Diego 2,878 4.2 % 3,108 95.3 % 11.3 % 1.4 % (3.3 %) 2.9 % 1.5 % 0.0 % (1.2 %) Subtotal – Southern California 21,041 26.8 % 2,929 95.3 % 10.6 % 0.3 % (2.9 %) 1.5 % 0.8 % (0.6 %) (1.4 %) Washington, D.C. 14,716 16.5 % 2,654 97.0 % 8.2 % 0.6 % (4.4 %) 2.9 % 0.4 % 0.2 % (6.2 %) San Francisco 11,445 15.9 % 3,302 95.3 % 10.9 % (0.4 %) (2.7 %) 0.7 % (0.2 %) (0.2 %) (2.2 %) New York 8,536 14.2 % 4,566 96.6 % 6.9 % 0.8 % (3.7 %) 4.0 % 0.8 % 0.1 % (5.8 %) Boston 7,170 11.0 % 3,574 95.8 % 8.6 % 1.1 % 1.3 % 1.1 % 1.4 % (0.3 %) (7.4 %) Seattle 9,266 10.2 % 2,561 95.3 % 8.2 % (0.4 %) (7.4 %) 2.5 % (0.6 %) 0.1 % (6.1 %) Denver 2,792 2.9 % 2,411 96.0 % 11.8 % (0.3 %) (4.0 %) 1.2 % 0.4 % (0.5 %) (6.4 %) Other Expansion Markets 3,197 2.5 % 1,996 95.0 % 13.0 % 0.5 % (18.8 %) 15.2 % 0.1 % 0.4 % (5.0 %) Total 78,163 100.0 % $ 3,071 95.8 % 9.4 % 0.3 % (3.9 %) 2.3 % 0.5 % (0.2 %) (4.4 %) Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.4% of total revenues for the year ended December 31, 2023. Equity Residential 2023 vs. 2022 Same Store Residential Results/Statistics by Market Increase (Decrease) from Prior Year Markets/Metro Areas Apartment Units 2023 % of Actual NOI 2023 Average Rental Rate 2023 Weighted Average Physical Occupancy % 2023 Turnover Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Los Angeles 14,135 17.6 % $ 2,861 95.3 % 44.5 % 3.7 % (1) 8.5 % 1.7 % 5.1 % (1.3 %) 5.8 % Orange County 4,028 5.6 % 2,801 96.3 % 37.4 % 6.3 % 8.3 % 5.7 % 7.1 % (0.7 %) 2.9 % San Diego 2,706 4.0 % 2,993 95.4 % 42.3 % 6.9 % 5.6 % 7.2 % 8.2 % (1.3 %) 4.2 % Subtotal – Southern California 20,869 27.2 % 2,867 95.5 % 42.9 % 4.6 % 8.1 % 3.3 % 5.9 % (1.2 %) 5.1 % San Francisco 11,245 16.4 % 3,290 95.6 % 44.1 % 3.6 % 4.2 % 3.3 % 4.2 % (0.6 %) 2.4 % Washington, D.C. 14,400 16.3 % 2,597 96.8 % 40.5 % 6.0 % 1.4 % 8.3 % 5.9 % 0.0 % (2.6 %) New York 8,536 14.4 % 4,504 96.8 % 37.2 % 10.5 % 2.8 % 16.7 % 10.7 % (0.1 %) (5.2 %) Seattle 9,266 10.8 % 2,579 95.2 % 48.0 % 3.0 % 3.3 % 2.9 % 2.9 % 0.1 % (3.6 %) Boston 6,700 10.3 % 3,422 96.0 % 43.9 % 7.1 % 3.5 % 8.7 % 7.4 % (0.1 %) (1.5 %) Denver 2,505 2.7 % 2,404 96.3 % 58.1 % 4.6 % 8.2 % 3.2 % 4.6 % 0.0 % (2.2 %) Other Expansion Markets 2,776 1.9 % 1,987 94.7 % 57.1 % 4.7 % 1.4 % 7.4 % 5.1 % (0.6 %) 1.8 % Total 76,297 100.0 % $ 3,029 95.9 % 43.7 % 5.7 % 4.1 % 6.4 % 6.2 % (0.4 %) 0.1 % (1) Excluding Bad Debt, Net, which includes the positive impact of governmental rental assistance in the year ended December 31, 2022, same store revenue growth would have been 5.3%. Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.4% of total revenues for the year ended December 31, 2023. Equity Residential Same Store Residential Net Effective Lease Pricing Statistics For 76,297 Same Store Apartment Units New Lease Change (1) Renewal Rate Achieved (1) Blended Rate (1) Markets/Metro Areas Q4 2023 Q3 2023 Q4 2023 Q3 2023 Q4 2023 Q3 2023 Southern California (3.0 %) 2.0 % 5.2 % 6.5 % 1.3 % 4.2 % San Francisco (9.4 %) (3.9 %) 4.1 % 4.4 % (3.1 %) 0.0 % Washington, D.C. 0.8 % 4.3 % 6.1 % 6.7 % 3.9 % 5.5 % New York (2.2 %) 1.5 % 4.5 % 5.3 % 2.2 % 3.7 % Seattle (8.4 %) (4.4 %) 5.7 % 2.5 % (1.4 %) (0.9 %) Boston (1.2 %) 3.7 % 5.3 % 6.1 % 2.7 % 5.0 % Denver (5.0 %) 0.1 % 4.7 % 5.3 % (0.3 %) 2.4 % Other Expansion Markets (12.5 %) (8.5 %) 4.4 % 3.4 % (5.5 %) (3.8 %) Total (4.5 %) 0.5 % 5.1 % 5.5 % 0.8 % 3.1 % (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions. See page 4 for January 2024 preliminary data. Equity Residential Fourth Quarter 2023 vs. Fourth Quarter 2022 Total Same Store Operating Expenses Including 77,676 Same Store Apartment Units ($ in thousands) Q4 2023 Q4 2022 $ Change (1) % Change % of Q4 2023 Operating Expenses Real estate taxes $ 89,064 $ 89,248 $ (184 ) (0.2 %) 41.2 % On-site payroll 42,352 41,696 656 1.6 % 19.6 % Utilities 34,709 34,672 37 0.1 % 16.0 % Repairs and maintenance 27,336 27,008 328 1.2 % 12.6 % Insurance 8,371 7,377 994 13.5 % 3.9 % Leasing and advertising 2,674 2,673 1 0.0 % 1.2 % Other on-site operating expenses 11,903 10,939 964 8.8 % 5.5 % Total Same Store Operating Expenses (2) (includes Residential and Non-Residential) $ 216,409 $ 213,613 $ 2,796 1.3 % 100.0 % 2023 vs. 2022 Total Same Store Operating Expenses Including 76,297 Same Store Apartment Units ($ in thousands) 2023 2022 $ Change (1) % Change % of 2023 Operating Expenses Real estate taxes $ 356,679 $ 350,928 $ 5,751 1.6 % 40.8 % On-site payroll 169,280 161,297 7,983 4.9 % 19.4 % Utilities 136,982 133,579 3,403 2.5 % 15.7 % Repairs and maintenance 117,559 107,702 9,857 9.2 % 13.4 % Insurance 33,063 28,999 4,064 14.0 % 3.8 % Leasing and advertising 10,194 10,400 (206 ) (2.0 %) 1.2 % Other on-site operating expenses 49,691 44,697 4,994 11.2 % 5.7 % Total Same Store Operating Expenses (2) (includes Residential and Non-Residential) $ 873,448 $ 837,602 $ 35,846 4.3 % 100.0 % (1) The year-over-year changes were primarily driven by the following factors: Real estate taxes – Increase due to modest escalation in rates and assessed values. On-site payroll – Increase due primarily to fewer staffing vacancies compared to the same periods of 2022 and elevated employee benefit costs, partially offset by the impact of innovation initiatives. Utilities – Increase primarily driven by higher water, sewer and trash expense. Repairs and maintenance – Increase was impacted by increased outsourcing due to higher internal staffing utilization to address issues from California rain storms that occurred earlier in 2023. Insurance – Increase due to higher premiums on property insurance renewal due to challenging conditions in the insurance market. 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 December 31, 2023 ($ in thousands) Debt Balances (1) % of Total Weighted Average Rates (1) Weighted Average Maturities (years) Secured $ 1,632,902 22.1 % 3.68 % 7.9 Unsecured 5,757,548 77.9 % 3.61 % 8.2 Total $ 7,390,450 100.0 % 3.63 % 8.1 Fixed Rate Debt: Secured – Conventional $ 1,398,598 18.9 % 3.60 % 7.4 Unsecured – Public 5,348,417 72.4 % 3.51 % 8.8 Fixed Rate Debt 6,747,015 91.3 % 3.53 % 8.5 Floating Rate Debt: Secured – Conventional — — 7.18 % — Secured – Tax Exempt 234,304 3.2 % 3.53 % 10.6 Unsecured – Revolving Credit Facility — — — 3.8 Unsecured – Commercial Paper Program (2) 409,131 5.5 % 5.47 % — Floating Rate Debt 643,435 8.7 % 4.79 % 4.0 Total $ 7,390,450 100.0 % 3.63 % 8.1 (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. (2) At December 31, 2023, the weighted average maturity of commercial paper outstanding was 14 days. The weighted average amount outstanding for the year ended December 31, 2023 was approximately $276.0 million. Note: The Company capitalized interest of approximately $12.3 million and $7.1 million during the years ended December 31, 2023 and 2022, respectively. The Company capitalized interest of approximately $2.7 million and $2.9 million during the quarters ended December 31, 2023 and 2022, respectively. Equity Residential Debt Maturity Schedule as of December 31, 2023 ($ 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 $ — $ 416,200 (2) $ 416,200 5.6 % N/A 5.63 % 2025 450,000 8,100 458,100 6.1 % 3.38 % 3.38 % 2026 592,025 9,000 601,025 8.0 % 3.58 % 3.59 % 2027 400,000 9,800 409,800 5.5 % 3.25 % 3.26 % 2028 900,000 10,700 910,700 12.2 % 3.79 % 3.79 % 2029 888,120 11,500 899,620 12.1 % 3.30 % 3.31 % 2030 1,148,462 12,700 1,161,162 15.6 % 2.53 % 2.55 % 2031 528,500 39,800 568,300 7.6 % 1.94 % 2.09 % 2032 — 28,000 28,000 0.4 % N/A 3.82 % 2033 550,000 2,300 552,300 7.4 % 5.22 % 5.21 % 2034+ 1,350,850 108,600 1,459,450 19.5 % 4.39 % 4.25 % Subtotal 6,807,957 656,700 7,464,657 100.0 % 3.53 % 3.64 % Deferred Financing Costs and Unamortized (Discount) (60,942 ) (13,265 ) (74,207 ) N/A N/A N/A Total $ 6,747,015 $ 643,435 $ 7,390,450 100.0 % 3.53 % 3.64 % (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. (2) Includes $410.0 million in principal outstanding on the Company's Commercial Paper Program. Equity Residential Selected Unsecured Public Debt Covenants December 31, September 30, 2023 2023 Debt to Adjusted Total Assets (not to exceed 60%) 26.5% 26.9% Secured Debt to Adjusted Total Assets (not to exceed 40%) 6.7% 6.7% Consolidated Income Available for Debt Service to Maximum Annual Service Charges (must be at least 1.5 to 1) 6.19 6.08 Total Unencumbered Assets to Unsecured Debt (must be at least 125%) 510.7% 502.3% Note: These selected covenants represent the most restrictive financial covenants relating to ERP Operating Limited Partnership's ("ERPOP") outstanding public debt securities. Equity Residential is the general partner of ERPOP. Selected Credit Ratios December 31, September 30, 2023 2023 Total debt to Normalized EBITDAre 4.17x 4.28x Net debt to Normalized EBITDAre 4.12x 4.24x Unencumbered NOI as a % of total NOI 89.8% 89.8% Note: See Normalized EBITDAre Reconciliations for detail. Equity Residential Capital Structure as of December 31, 2023 (Amounts in thousands except for share/unit and per share amounts) Secured Debt $ 1,632,902 22.1 % Unsecured Debt 5,757,548 77.9 % Total Debt 7,390,450 100.0 % 23.6 % Common Shares (includes Restricted Shares) 379,291,417 97.0 % Units (includes OP Units and Restricted Units) 11,581,306 3.0 % Total Shares and Units 390,872,723 100.0 % Common Share Price at December 31, 2023 $ 61.16 23,905,776 99.8 % Perpetual Preferred Equity (see below) 37,280 0.2 % Total Equity 23,943,056 100.0 % 76.4 % Total Market Capitalization $ 31,333,506 100.0 % Perpetual Preferred Equity as of December 31, 2023 (Amounts in thousands except for share and per share amounts) Series Call Date Outstanding Shares Liquidation Value Annual Dividend Per Share Annual Dividend Amount Preferred Shares: 8.29% Series K 12/10/26 745,600 $ 37,280 $ 4.145 $ 3,091 Equity Residential Common Share and Unit Weighted Average Amounts Outstanding 2023 2022 Q4 2023 Q4 2022 Weighted Average Amounts Outstanding for Net Income Purposes: Common Shares - basic 378,773,303 376,209,084 379,247,194 377,688,991 Shares issuable from assumed conversion/vesting of: - OP Units 11,180,536 11,836,257 10,596,465 11,668,107 - long-term compensation shares/units 942,712 1,401,485 942,942 887,549 - ATM forward sales — 3,092 — — Total Common Shares and Units - diluted 390,896,551 389,449,918 390,786,601 390,244,647 Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes: Common Shares - basic 378,773,303 376,209,084 379,247,194 377,688,991 OP Units - basic 11,180,536 11,836,257 10,596,465 11,668,107 Total Common Shares and OP Units - basic 389,953,839 388,045,341 389,843,659 389,357,098 Shares issuable from assumed conversion/vesting of: - long-term compensation shares/units 942,712 1,401,485 942,942 887,549 - ATM forward sales — 3,092 — — Total Common Shares and Units - diluted 390,896,551 389,449,918 390,786,601 390,244,647 Period Ending Amounts Outstanding: Common Shares (includes Restricted Shares) 379,291,417 378,429,708 Units (includes OP Units and Restricted Units) 11,581,306 12,429,737 Total Shares and Units 390,872,723 390,859,445 Equity Residential Development and Lease-Up Projects as of December 31, 2023 (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: Laguna Clara II Santa Clara, CA 100% 225 $ 152,621 $ 78,036 $ — 53% Q2 2022 Q4 2024 Q1 2025 Q4 2025 – / – Projects Under Development - Consolidated 225 152,621 78,036 — Projects Completed Not Stabilized: Reverb (fka 9th and W) (2) Washington, D.C. 92% 312 108,027 104,651 — 100% Q3 2021 Q2 2023 Q2 2023 Q3 2024 82% / 79% Projects Completed Not Stabilized - Consolidated 312 108,027 104,651 — UNCONSOLIDATED: Projects Under Development: Alloy Sunnyside (3) Denver, CO 80% 209 70,004 62,071 27,304 94% Q3 2021 Q2 2024 Q2 2024 Q1 2025 – / – Alexan Harrison (3) Harrison, NY 62% 450 200,664 175,135 77,058 92% Q3 2021 Q1 2024 Q4 2024 Q2 2026 – / – Solana Beeler Park (3) Denver, CO 90% 270 85,206 56,178 22,858 64% Q4 2021 Q2 2024 Q3 2024 Q1 2025 – / – Remy (Toll) (3) Frisco, TX 75% 357 98,937 77,170 31,494 80% Q1 2022 Q1 2024 Q4 2024 Q3 2025 – / – Sadie (fka Settler) (Toll) (3) Fort Worth, TX 75% 362 82,775 55,522 14,944 69% Q2 2022 Q2 2024 Q3 2024 Q3 2025 – / – Lyle (Toll) (2) Dallas, TX 75% 334 86,332 52,914 21,962 66% Q3 2022 Q2 2024 Q3 2024 Q1 2026 – / – Projects Under Development - Unconsolidated 1,982 623,918 478,990 195,620 Total Development Projects - Consolidated 537 260,648 182,687 — Total Development Projects - Unconsolidated 1,982 623,918 478,990 195,620 Total Development Projects 2,519 $ 884,566 $ 661,677 $ 195,620 NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS Total Budgeted Capital Cost Q4 2023 NOI Projects Under Development - Consolidated $ 152,621 $ — Projects Completed Not Stabilized - Consolidated 108,027 741 Projects Under Development - Unconsolidated 623,918 (108 ) $ 884,566 $ 633 (1) Except for Reverb where the Company paid off the third party construction loan in the third quarter of 2023, all non-wholly owned projects are being partially funded with project-specific construction loans. None of these loans are recourse to the Company. (2) The land parcels under these projects are subject to long-term ground leases. (3) The Total Budgeted Capital Cost on these projects increased by an aggregate of $13.0 million or 2.5% of initial budget primarily due to higher than budgeted interest incurred on construction loans. Equity Residential Capital Expenditures to Real Estate For the Year Ended December 31, 2023 (Amounts in thousands except for apartment unit and per apartment unit amounts) Same Store Properties Non-Same Store Properties/Other Total Same Store Avg. Per Apartment Unit Total Apartment Units 76,297 3,894 80,191 Building Improvements $ 137,058 $ 11,907 (2) $ 148,965 $ 1,796 Renovation Expenditures 79,291 (1) 22,863 (2) 102,154 1,039 Replacements 66,496 1,727 68,223 872 Capital Expenditures to Real Estate (3) $ 282,845 $ 36,497 $ 319,342 $ 3,707 (1) Renovation Expenditures on 2,799 same store apartment units for the year ended December 31, 2023 approximated $28,328 per apartment unit renovated. (2) Includes expenditures for two properties that have been removed from same store while undergoing major renovations requiring a significant number of apartment units to be vacated to accommodate the extensive planned improvements. The renovation at one property is expected to continue through the second quarter of 2024 with the other continuing into 2025. (3) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. Note: Approximately 40% of the Company's 2023 Capital Expenditures to Real Estate for Same Store Properties were NOI-Enhancing, including the $79.3 million of Renovation Expenditures noted above, with the remainder concentrated in sustainability and property-level technology spend. Equity Residential Normalized EBITDAre Reconciliations (Amounts in thousands) Trailing Twelve Months 2023 2022 December 31, 2023 September 30, 2023 Q4 Q3 Q2 Q1 Q4 Net income $ 868,488 $ 711,573 $ 322,269 $ 181,286 $ 144,862 $ 220,071 $ 165,354 Interest expense incurred, net 269,556 266,709 68,674 68,891 65,590 66,401 65,827 Amortization of deferred financing costs 8,941 9,331 1,918 3,027 2,017 1,979 2,308 Amortization of above/below market lease intangibles 4,464 4,464 1,116 1,116 1,116 1,116 1,116 Depreciation 888,709 876,193 226,788 224,736 221,355 215,830 214,272 Income and other tax expense (benefit) 1,148 1,067 256 258 336 298 175 EBITDA 2,041,306 1,869,337 621,021 479,314 435,276 505,695 449,052 Net (gain) loss on sales of real estate properties (282,539 ) (127,013 ) (155,505 ) (26,912 ) 87 (100,209 ) 21 EBITDAre 1,758,767 1,742,324 465,516 452,402 435,363 405,486 449,073 Write-off of pursuit costs (other expenses) 3,647 4,223 908 746 661 1,332 1,484 (Income) loss from investments in unconsolidated entities - operations 5,378 5,422 1,531 1,242 1,223 1,382 1,575 Realized (gain) loss on investment securities (interest and other income) (1,504 ) 1,714 7 (1,598 ) — 87 3,225 Unrealized (gain) loss on investment securities (interest and other income) (13,466 ) (4,461 ) (9,005 ) (4,461 ) — — — Insurance/litigation settlement or reserve income (interest and other income) (1,055 ) (1,067 ) — (62 ) (193 ) (800 ) (12 ) Insurance/litigation/environmental settlement or reserve expense (other expenses) 17,310 12,361 5,694 3,104 3,513 4,999 745 Advocacy contributions (other expenses) 2,142 527 1,665 150 320 7 50 Data transformation project (other expenses) 3,780 4,900 — 295 1,405 2,080 1,120 Real estate tax transaction adjustment (real estate taxes) — (18,072 ) — — — — (18,072 ) Other (589 ) 449 (602 ) 1 6 6 436 Normalized EBITDAre $ 1,774,410 $ 1,748,320 $ 465,714 $ 451,819 $ 442,298 $ 414,579 $ 439,624 Balance Sheet Items: December 31, 2023 September 30, 2023 Total debt $ 7,390,450 $ 7,479,257 Cash and cash equivalents (50,743 ) (39,250 ) Mortgage principal reserves/sinking funds (29,270 ) (30,234 ) Net debt $ 7,310,437 $ 7,409,773 Note: EBITDA, EBITDAre and Normalized EBITDAre do not include any adjustments for the Company’s share of partially owned unconsolidated entities or the minority partner’s share of partially owned consolidated entities due to the immaterial size of the Company’s partially owned portfolio. Equity Residential Adjustments from FFO to Normalized FFO (Amounts in thousands) Year Ended December 31, Quarter Ended December 31, 2023 2022 Variance 2023 2022 Variance Impairment – non-operating real estate assets $ — $ — $ — $ — $ — $ — Write-off of pursuit costs (other expenses) 3,647 4,780 (1,133 ) 908 1,484 (576 ) Write-off of unamortized deferred financing costs (interest expense) 1,143 717 426 — 348 (348 ) Write-off of unamortized (premiums)/discounts/OCI (interest expense) — 3,947 (3,947 ) — — — Debt extinguishment and preferred share redemption (gains) losses 1,143 4,664 (3,521 ) — 348 (348 ) (Income) loss from investments in unconsolidated entities ─ non-operating assets 1,647 1,204 443 410 317 93 Realized (gain) loss on investment securities (interest and other income) (1,504 ) 1,164 (2,668 ) 7 3,225 (3,218 ) Unrealized (gain) loss on investment securities (interest and other income) (13,466 ) — (13,466 ) (9,005 ) — (9,005 ) Non-operating asset (gains) losses (13,323 ) 2,368 (15,691 ) (8,588 ) 3,542 (12,130 ) Insurance/litigation settlement or reserve income (interest and other income) (1,055 ) (1,650 ) 595 — (12 ) 12 Insurance/litigation/environmental settlement or reserve expense (other expenses) 17,310 1,495 15,815 5,694 745 4,949 Advocacy contributions (other expenses) 2,142 1,512 630 1,665 50 1,615 Data transformation project (other expenses) 3,780 1,120 2,660 — 1,120 (1,120 ) Real estate tax transaction adjustment (real estate taxes) — (18,072 ) 18,072 — (18,072 ) 18,072 Other (589 ) 1,694 (2,283 ) (602 ) 436 (1,038 ) Other miscellaneous items 21,588 (13,901 ) 35,489 6,757 (15,733 ) 22,490 Adjustments from FFO to Normalized FFO $ 13,055 $ (2,089 ) $ 15,144 $ (923 ) $ (10,359 ) $ 9,436 Note: 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 Normalized FFO Guidance and Assumptions The guidance/projections provided below are based on current expectations and are forward-looking. All guidance is given on a Normalized FFO basis. Therefore, certain items excluded from Normalized FFO, such as debt extinguishment costs/prepayment penalties and the write-off of pursuit costs, are not included in the estimates provided on this page. 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. Q1 2024 Full Year 2024 2024 Normalized FFO Guidance (per share diluted) Expected Normalized FFO Per Share $0.88 to $0.92 $3.80 to $3.90 2024 Same Store Assumptions (includes Residential and Non-Residential) Physical Occupancy 95.9% Revenue change 2.0% to 3.0% Expense change 3.5% to 4.5% NOI change (1) 1.0% to 2.6% 2024 Transaction Assumptions Consolidated rental acquisitions $1.0B Consolidated rental dispositions $1.0B Transaction Accretion (Dilution) (25 basis points) 2024 Debt Assumptions Weighted average debt outstanding $7.27B to $7.47B Interest expense, net (on a Normalized FFO basis) $268.0M to $274.0M Capitalized interest $9.7M to $13.7M 2024 Capital Expenditures to Real Estate Assumptions for Same Store Properties (2) Capital Expenditures to Real Estate for Same Store Properties $295.0M Capital Expenditures to Real Estate per Same Store Apartment Unit $3,800 2024 Other Guidance Assumptions Property management expense $124.0M to $126.0M General and administrative expense $57.5M to $61.5M Debt offerings No amounts budgeted Weighted average Common Shares and Units - Diluted 391.1M (1) Approximately 20 basis point change in NOI percentage = $0.01 per share change in EPS/FFO per share/Normalized FFO per share. (2) Similar to 2023, the Company expects that approximately 40% of its Capital Expenditures to Real Estate for Same Store Properties will be NOI-Enhancing (primarily renovations, sustainability and property-level technology spend). During 2024, the Company expects to spend approximately $104.0 million for apartment unit Renovation Expenditures on approximately 3,250 same store apartment units at an average cost of approximately $32,000 per apartment unit renovated with the remainder of the NOI-Enhancing spend consisting of sustainability and property-level technology expenditures. Equity Residential Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms (Amounts in thousands except per share and per apartment unit data) (All per share data is diluted) This Earnings Release and Supplemental Financial Information includes certain non-GAAP financial measures and other terms that management believes are helpful in understanding our business. The definitions and calculations of these non-GAAP financial measures and other terms may differ from the definitions and methodologies used by other real estate investment trusts (“REIT”) and, accordingly, may not be comparable. These non-GAAP financial measures should not be considered as an alternative to net earnings or any other measurement of performance computed in accordance with accounting principles generally accepted in the United States (“GAAP”) or as an alternative to cash flows from specific operating, investing or financing activities. Furthermore, these non-GAAP financial measures are not intended to be a measure of cash flow or liquidity. Acquisition Capitalization Rate or Cap Rate – NOI that the Company anticipates receiving in the next 12 months (or the year two or three stabilized NOI for properties that are in lease-up at acquisition) less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $100-$450 per apartment unit depending on the age and condition of the asset) divided by the gross purchase price of the asset. The weighted average Acquisition Cap Rate for acquired properties is weighted based on the projected NOI streams and the relative purchase price for each respective property. Average Rental Rate – Total Residential rental revenues reflected on a straight-line basis in accordance with GAAP divided by the weighted average occupied apartment units for the reporting period presented. Bad Debt, Net – Change in rental income due to bad debt write-offs and reserves, net of amounts collected on previously written-off or reserved accounts. Blended Rate – The weighted average of New Lease Change and Renewal Rate Achieved. Capital Expenditures to Real Estate: Building Improvements – Includes roof replacement, paving, building mechanical equipment systems, exterior siding and painting, major landscaping, furniture, fixtures and equipment for amenities and common areas, vehicles and office and maintenance equipment. NOI-Enhancing – Primarily includes Renovation Expenditures as well as sustainability and property-level technology expenditures that are intended to increase revenues or decrease expenses. Renovation Expenditures – Apartment unit renovation costs (primarily kitchens and baths) designed to reposition these units for higher rental levels in their respective markets. Replacements – Includes appliances, mechanical equipment, fixtures and flooring (including hardwood and carpeting). Debt Balances: Commercial Paper Program – The Company may borrow up to a maximum of $1.0 billion under its Commercial Paper Program subject to market conditions. The notes bear interest at various floating rates. Revolving Credit Facility – The Company’s $2.5 billion unsecured revolving credit facility matures October 26, 2027. The interest rate on advances under the facility will generally be SOFR plus a spread (currently 0.725%), or based on bids received from the lending group, and an annual facility fee (currently 0.125%). Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating. In addition, the Company limits its utilization of the facility in order to maintain liquidity to support its $1.0 billion Commercial Paper Program along with certain other obligations. The following table presents the availability on the Company’s unsecured revolving credit facility: December 31, 2023 Unsecured revolving credit facility commitment $ 2,500,000 Commercial paper balance outstanding (410,000 ) Unsecured revolving credit facility balance outstanding — Other restricted amounts (3,415 ) Unsecured revolving credit facility availability $ 2,086,585 Debt Covenant Compliance – Our unsecured debt includes certain financial and operating covenants including, among other things, maintenance of certain financial ratios. These provisions are contained in the indentures applicable to each notes payable or the credit agreement for our line of credit. The Debt Covenant Compliance ratios that are provided show the Company's compliance with certain covenants governing our public unsecured debt. These covenants generally reflect our most restrictive financial covenants. The Company was in compliance with its unsecured debt covenants for all periods presented. Development Yield – NOI that the Company anticipates receiving in the next 12 months following stabilization less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $50-$150 per apartment unit depending on the type of asset) divided by the Total Budgeted Capital Cost of the asset. The weighted average Development Yield for development properties is weighted based on the projected NOI streams and the relative Total Budgeted Capital Cost for each respective property. Disposition Yield – NOI that the Company anticipates giving up in the next 12 months less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $150-$450 per apartment unit depending on the age and condition of the asset) divided by the gross sales price of the asset. The weighted average Disposition Yield for sold properties is weighted based on the projected NOI streams and the relative sales price for each respective property. Earnings Per Share ("EPS") – Net income per share calculated in accordance with GAAP. Expected EPS is calculated on a basis consistent with actual EPS. Due to the uncertain timing and extent of property dispositions and the resulting gains/losses on sales, actual EPS could differ materially from expected EPS. EBITDA for Real Estate and Normalized EBITDA for Real Estate: Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”) – The National Association of Real Estate Investment Trusts (“Nareit”) defines EBITDAre (September 2017 White Paper) as net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for gains and losses from sales of depreciated operating properties, impairment write-downs of depreciated operating properties, impairment write-downs of investments in unconsolidated entities caused by a decrease in value of depreciated operating properties within the joint venture and adjustments to reflect the Company’s share of EBITDAre of investments in unconsolidated entities. The Company believes that EBITDAre is useful to investors, creditors and rating agencies as a supplemental measure of the Company’s ability to incur and service debt because it is a recognized measure of performance by the real estate industry, and by excluding gains or losses related to sales or impairment of depreciated operating properties, EBITDAre can help compare the Company’s credit strength between periods or as compared to different companies. Normalized Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“Normalized EBITDAre”) – Represents net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for non-comparable items. Normalized EBITDAre, total debt to Normalized EBITDAre and net debt to Normalized EBITDAre are important metrics in evaluating the credit strength of the Company and its ability to service its debt obligations. The Company believes that Normalized EBITDAre, total debt to Normalized EBITDAre, and net debt to Normalized EBITDAre are useful to investors, creditors and rating agencies because they allow investors to compare the Company’s credit strength to prior reporting periods and to other companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual credit quality. Economic Gain (Loss) – Economic Gain (Loss) is calculated as the net gain (loss) on sales of real estate properties in accordance with GAAP, excluding accumulated depreciation. The Company generally considers Economic Gain (Loss) to be an appropriate supplemental measure to net gain (loss) on sales of real estate properties in accordance with GAAP because it is one indication of the gross value created by the Company's acquisition, development, renovation, management and ultimate sale of a property and because it helps investors to understand the relationship between the cash proceeds from a sale and the cash invested in the sold property. The following table presents a reconciliation of net gain (loss) on sales of real estate properties in accordance with GAAP to Economic Gain (Loss): Year Ended December 31, 2023 Quarter Ended December 31, 2023 Net Gain (Loss) on Sales of Real Estate Properties $ 282,539 $ 155,505 Accumulated Depreciation Gain (106,110 ) (50,353 ) Economic Gain (Loss) $ 176,429 $ 105,152 Forecasted Embedded Growth – The positive or negative contribution to growth implied by annualizing total lease income anticipated for the last month of the current year (without regard to vacancy) compared to anticipated actual full year lease income for the current year (without regard to vacancy) and excluding the impact of Leasing Concessions and other income. This metric is a helpful data point in that it captures the impact of leases in existence at the end of the current year and their impact on rental income for the following year. FFO and Normalized FFO: Funds From Operations (“FFO”) – Nareit defines FFO (December 2018 White Paper) as net income (computed in accordance with GAAP), excluding gains or losses from sales and impairment write-downs of depreciable real estate and land when connected to the main business of a REIT, impairment write-downs of investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity and depreciation and amortization related to real estate. Adjustments for partially owned consolidated and unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. Expected FFO per share is calculated on a basis consistent with actual FFO per share and is considered an appropriate supplemental measure of expected operating performance when compared to expected EPS. The Company believes that FFO and FFO available to Common Shares and Units are helpful to investors as supplemental measures of the operating performance of a real estate company, because they are recognized measures of performance by the real estate industry and by excluding gains or losses from sales and impairment write-downs of depreciable real estate and excluding depreciation related to real estate (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO and FFO available to Common Shares and Units can help compare the operating performance of a company’s real estate between periods or as compared to different companies. Normalized Funds From Operations ("Normalized FFO" or "NFFO") – Normalized FFO begins with FFO and excludes: the impact of any expenses relating to non-operating real estate asset impairment; pursuit cost write-offs; gains and losses from early debt extinguishment and preferred share redemptions; gains and losses from non-operating assets; and other miscellaneous items. Expected Normalized FFO per share is calculated on a basis consistent with actual Normalized FFO per share and is considered an appropriate supplemental measure of expected operating performance when compared to expected EPS. The Company believes that Normalized FFO and Normalized FFO available to Common Shares and Units are helpful to investors as supplemental measures of the operating performance of a real estate company because they allow investors to compare the Company's operating performance to its performance in prior reporting periods and to the operating performance of other real estate companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company's actual operating results. FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units do not represent net income, net income available to Common Shares or net cash flows from operating activities in accordance with GAAP. Therefore, FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units should not be exclusively considered as alternatives to net income, net income available to Common Shares or net cash flows from operating activities as determined by GAAP or as a measure of liquidity. The Company's calculation of FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units may differ from other real estate companies due to, among other items, variations in cost capitalization policies for capital expenditures and, accordingly, may not be comparable to such other real estate companies. FFO available to Common Shares and Units and Normalized FFO available to Common Shares and Units are calculated on a basis consistent with net income available to Common Shares and reflects adjustments to net income for preferred distributions and premiums on redemption of preferred shares in accordance with GAAP. The equity positions of various individuals and entities that contributed their properties to the Operating Partnership in exchange for OP Units are collectively referred to as the "Noncontrolling Interests – Operating Partnership". Subject to certain restrictions, the Noncontrolling Interests – Operating Partnership may exchange their OP Units for Common Shares on a one-for-one basis. The following table presents reconciliations of EPS to FFO per share and Normalized FFO per share for Consolidated Statements of Funds From Operations and Normalized Funds From Operations. Actual Actual Expected Expected Actual 2023 Actual 2022 Q4 2023 Q4 2022 Q1 2024 2024 Per Share Per Share Per Share Per Share Per Share Per Share EPS – Diluted $ 2.20 $ 2.05 $ 0.82 $ 0.42 $0.77 to $0.81 $2.91 to $3.01 Depreciation expense 2.27 2.26 0.58 0.55 0.58 2.25 Net (gain) loss on sales (0.72 ) (0.78 ) (0.40 ) — (0.48 ) (1.42 ) Impairment – operating real estate assets — — — — — — FFO per share – Diluted 3.75 3.53 1.00 0.97 0.87 to 0.91 3.74 to 3.84 Impairment – non-operating real estate assets — — — — — — Write-off of pursuit costs 0.01 0.01 — — — 0.01 Debt extinguishment and preferred share redemption (gains) losses — 0.01 — — — — Non-operating asset (gains) losses (0.03 ) 0.01 (0.02 ) 0.01 — 0.01 Other miscellaneous items 0.05 (0.04 ) 0.02 (0.04 ) 0.01 0.04 Normalized FFO per share – Diluted $ 3.78 $ 3.52 $ 1.00 $ 0.94 $0.88 to $0.92 $3.80 to $3.90 Lease-Up NOI – Represents NOI for development properties: (i) in various stages of lease-up; and (ii) where lease-up has been completed but the properties were not stabilized (defined as having achieved 90% occupancy for three consecutive months) for all of the current and comparable periods presented. Leasing Concessions – Reflects upfront discounts on both new move-in and renewal leases on a straight-line basis. Net Operating Income (“NOI”) – NOI is the Company’s primary financial measure for evaluating each of its apartment properties. NOI is defined as rental income less direct property operating expenses (including real estate taxes and insurance). The Company believes that NOI is helpful to investors as a supplemental measure of its operating performance because it is a direct measure of the actual operating results of the Company's apartment properties. NOI does not include an allocation of property management expenses either in the current or comparable periods. Rental income for all leases and operating expense for ground leases (for both same store and non-same store properties) are reflected on a straight-line basis in accordance with GAAP for the current and comparable periods. The following tables present reconciliations of operating income per the consolidated statements of operations to NOI, along with rental income, operating expenses and NOI per the consolidated statements of operations allocated between same store and non-same store/other results (see Same Store Results): Year Ended December 31, Quarter Ended December 31, 2023 2022 2023 2022 Operating income $ 1,160,585 $ 1,116,046 $ 392,501 $ 242,363 Adjustments: Property management 119,804 110,304 29,490 27,269 General and administrative 60,716 58,710 11,581 11,677 Depreciation 888,709 882,168 226,788 214,272 Net (gain) loss on sales of real estate properties (282,539 ) (304,325 ) (155,505 ) 21 Total NOI $ 1,947,275 $ 1,862,903 $ 504,855 $ 495,602 Rental income: Same store $ 2,754,711 $ 2,609,766 $ 711,756 $ 685,317 Non-same store/other 119,253 125,414 15,744 14,386 Total rental income 2,873,964 2,735,180 727,500 699,703 Operating expenses: Same store 873,448 837,602 216,409 213,613 Non-same store/other 53,241 34,675 6,236 (9,512 ) Total operating expenses 926,689 872,277 222,645 204,101 NOI: Same store 1,881,263 1,772,164 495,347 471,704 Non-same store/other 66,012 90,739 9,508 23,898 Total NOI $ 1,947,275 $ 1,862,903 $ 504,855 $ 495,602 New Lease Change – The net effective change in rent (inclusive of Leasing Concessions) for a lease with a new or transferring resident compared to the rent for the prior lease of the identical apartment unit, regardless of lease term. Non-Residential – Consists of revenues and expenses from retail and public parking garage operations. Non-Same Store Properties – For annual comparisons, primarily includes all properties acquired during 2022 and 2023, plus any properties in lease-up and not stabilized as of January 1, 2022. Percentage of Residents Renewing – Leases renewed expressed as a percentage of total renewal offers extended during the reporting period. Physical Occupancy – The weighted average occupied apartment units for the reporting period divided by the average of total apartment units available for rent for the reporting period. Pricing Trend – Weighted average of 12-month base rent including amenity amount less Leasing Concessions on 12-month signed leases for the reporting period. Renewal Rate Achieved – The net effective change in rent (inclusive of Leasing Concessions) for a new lease on an apartment unit where the lease has been renewed as compared to the rent for the prior lease of the identical apartment unit, regardless of lease term. Residential – Consists of multifamily apartment revenues and expenses. Same Store Operating Expenses: Insurance – Includes third-party insurance premiums, broker fees and other insurance-related procurement fees along with an allocation of estimated uninsured losses. On-site Payroll – Includes payroll and related expenses for on-site personnel including property managers, leasing consultants and maintenance staff. Other On-site Operating Expenses – Includes ground lease costs and administrative costs such as office supplies, telephone and data charges and association and business licensing fees. Repairs and Maintenance – Includes general maintenance costs, apartment unit turnover costs including interior painting, routine landscaping, security, exterminating, fire protection, snow removal, elevator, roof and parking lot repairs and other miscellaneous building repair and maintenance costs. Utilities – Represents gross expenses prior to any recoveries under the Resident Utility Billing System (“RUBS”). Recoveries are reflected in rental income. Same Store Properties – For annual comparisons, primarily includes all properties acquired or completed that are stabilized prior to January 1, 2022, less properties subsequently sold. Properties are included in Same Store when they are stabilized for all of the current and comparable periods presented. Same Store Residential Revenues – Revenues from our Same Store Properties presented on a GAAP basis which reflects the impact of Leasing Concessions on a straight-line basis. Same Store Residential Revenues with Leasing Concessions on a cash basis is presented in Same Store Results and is considered by the Company to be a supplemental measure to Same Store Residential Revenues in conformity with GAAP to help investors evaluate the impact of both current and historical Leasing Concessions on GAAP-based Same Store Residential Revenues and to more readily enable comparisons to revenue as reported by other companies. Same Store Residential Revenues with Leasing Concessions on a cash basis reflects the impact of Leasing Concessions used in the period and allows an investor to understand the historical trend in cash Leasing Concessions. % of Stabilized Budgeted NOI – Represents original budgeted 2024 NOI for stabilized properties and projected annual NOI at stabilization (defined as having achieved 90% occupancy for three consecutive months) for properties that are in lease-up. Total Budgeted Capital Cost – Estimated remaining cost for projects under development and/or developed plus all capitalized costs incurred to date, including land acquisition costs, construction costs, capitalized real estate taxes and insurance, capitalized interest and loan fees, permits, professional fees, allocated development overhead and other regulatory fees, plus any estimates of costs remaining to be funded for all projects, all in accordance with GAAP. Amounts for partially owned consolidated and unconsolidated properties are presented at 100% of the project. Total Market Capitalization – The aggregate of the market value of the Company’s outstanding common shares, including restricted shares, the market value of the Company’s operating partnership units outstanding, including restricted units (based on the market value of the Company’s common shares) and the outstanding principal balance of debt. The Company believes this is a useful measure of a real estate operating company’s long-term liquidity and balance sheet strength, because it shows an approximate relationship between a company’s total debt and the current total market value of its assets based on the current price at which the Company’s common shares trade. However, because this measure of leverage changes with fluctuations in the Company’s share price, which occur regularly, this measure may change even when the Company’s earnings, interest and debt levels remain stable. Traffic – Consists of an expression of interest in an apartment by completing an in-person tour, self-guided tour or virtual tour that may result in an application to lease. Transaction Accretion (Dilution) – Represents the spread between the Acquisition Cap Rate and the Disposition Yield. Turnover – Total Residential move-outs (including inter-property and intra-property transfers) divided by total Residential apartment units. Unencumbered NOI % – Represents NOI generated by consolidated real estate assets unencumbered by outstanding secured debt as a percentage of total NOI generated by all of the Company's consolidated real estate assets. Unlevered Internal Rate of Return (“IRR”) – The Unlevered IRR on sold properties is the compound annual rate of return calculated by the Company based on the timing and amount of: (i) the gross purchase price of the property plus any direct acquisition costs incurred by the Company; (ii) total revenues earned during the Company’s ownership period; (iii) total direct property operating expenses (including real estate taxes and insurance) incurred during the Company’s ownership period; (iv) capital expenditures incurred during the Company’s ownership period; and (v) the gross sales price of the property net of selling costs. The calculation of the Unlevered IRR does not include an adjustment for the Company’s property management expense, general and administrative expense or interest expense (including loan assumption costs and other loan-related costs). Therefore, the Unlevered IRR is not a substitute for net income as a measure of our performance. Management believes that the Unlevered IRR achieved during the period a property is owned by the Company is useful because it is one indication of the gross value created by the Company’s acquisition, development, renovation, management and ultimate sale of a property, before the impact of Company overhead. The Unlevered IRR achieved on the properties as cited in this release should not be viewed as an indication of the gross value created with respect to other properties owned by the Company, and the Company does not represent that it will achieve similar Unlevered IRRs upon the disposition of other properties. The weighted average Unlevered IRR for sold properties is weighted based on all cash flows over the investment period for each respective property, including net sales proceeds. Weighted Average Coupons – Contractual interest rate for each debt instrument weighted by principal balances as of December 31, 2023. In case of debt for which fair value hedges are in place, the rate payable under the corresponding derivatives is used in lieu of the contractual interest rate. Weighted Average Rates – Interest expense for each debt instrument for the year ended December 31, 2023 weighted by its average principal balance for the same period. Interest expense includes amortization of premiums, discounts and other comprehensive income on debt and related derivative instruments. In case of debt for which derivatives are in place, the income or expense recognized under the corresponding derivatives is included in the total interest expense for the period. View source version on businesswire.com: https://www.businesswire.com/news/home/20240130619582/en/Contacts Marty McKenna 312-928-1901 mmckenna@eqr.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Equity Residential Reports Fourth Quarter 2023 Results By: Equity Residential via Business Wire January 30, 2024 at 16:15 PM EST Provides 2024 Guidance Equity Residential (NYSE: EQR) today reported results for the quarter and year ended December 31, 2023. Fourth Quarter 2023 Results All per share results are reported as available to common shares/units on a diluted basis. Quarter Ended December 31, 2023 2022 $ Change % Change Earnings Per Share (EPS) $ 0.82 $ 0.42 $ 0.40 95.2 % Funds from Operations (FFO) per share $ 1.00 $ 0.97 $ 0.03 3.1 % Normalized FFO (NFFO) per share $ 1.00 $ 0.94 $ 0.06 6.4 % Year Ended December 31, 2023 2022 $ Change % Change Earnings Per Share (EPS) $ 2.20 $ 2.05 $ 0.15 7.3 % Funds from Operations (FFO) per share $ 3.75 $ 3.53 $ 0.22 6.2 % Normalized FFO (NFFO) per share $ 3.78 $ 3.52 $ 0.26 7.4 % Recent Highlights Same store revenue increased 3.9% for the fourth quarter of 2023 compared to the fourth quarter of 2022, driven by strong demand. The Company has provided guidance for the full year 2024 with same store revenue growth expected to be between 2.0% and 3.0%. During the fourth quarter of 2023, the Company sold three properties located in our West Coast markets (San Francisco, Seattle and Los Angeles), consisting of 499 apartment units, for an aggregate sale price of approximately $184.5 million. During the fourth quarter of 2023, the Company repurchased and retired 864,386 of its common shares, at a weighted average purchase price of $56.79 per share, for an aggregate purchased amount of approximately $49.1 million. Following this repurchase activity, the Company’s Board of Trustees approved replenishing the Company’s share repurchase program authorization back to its original 13.0 million shares. “We are pleased with our fourth quarter results as we finished the year in line with our expectations. I want to thank my colleagues across Equity Residential for their hard work and dedication to our customers and shareholders,” said Mark J. Parrell, Equity Residential’s President and CEO. “We enter 2024 well-positioned to post solid results on the operations side despite expectations of a slowing economy with continuing high employment levels in our target affluent renter demographic and a manageable apartment supply backdrop in our existing predominantly coastal footprint versus oversupplied Sunbelt markets. We are optimistic that in 2024 we will see a variety of favorable opportunities to deploy capital and have a team and a balance sheet well-prepared to do so.” Full Year 2024 Guidance The Company has provided guidance for its full year 2024 same store operating performance, EPS, FFO per share, Normalized FFO per share and transactions as listed below: Same Store (includes Residential and Non-Residential): Physical Occupancy 95.9% Revenue change 2.0% to 3.0% Expense change 3.5% to 4.5% Net Operating Income (NOI) change 1.0% to 2.6% EPS $2.91 to $3.01 FFO per share $3.74 to $3.84 Normalized FFO per share $3.80 to $3.90 Transactions: Consolidated rental acquisitions $1.0B Consolidated rental dispositions $1.0B Transaction Accretion (Dilution) (25 basis points) The difference between the Company's full year 2023 actual EPS of $2.20 and the full year 2024 EPS guidance midpoint of $2.96 is due primarily to higher expected property sale gains and the items described below. The difference between the Company's full year 2023 actual FFO of $3.75 per share and the full year 2024 FFO guidance midpoint of $3.79 per share is due primarily to lower expected non-operating gains on sale offset by the items described below. The difference between the Company's full year 2023 actual Normalized FFO of $3.78 per share and the full year 2024 Normalized FFO guidance midpoint of $3.85 per share is due primarily to: Expected Positive/(Negative) Impact Full Year 2024 vs. Full Year 2023 Residential same store NOI $ 0.09 Lease-Up NOI 0.01 2024 and 2023 transaction activity impact on NOI, net (0.03 ) Corporate overhead (1) (0.01 ) Other items 0.01 Net $ 0.07 (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. Results Per Share The change in EPS for the quarter ended December 31, 2023 compared to the same period of 2022 is due primarily to higher property sale gains in the current period, the various adjustment items listed on page 27 of this release and the items described below. The change in EPS for the year end December 31, 2023 compared to the same period of 2022 is due primarily to lower property sale gains in the current period, 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 year ended December 31, 2023 compared to the same periods of 2022 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 Fourth Quarter 2023 vs. Fourth Quarter 2022 Full Year 2023 vs. Full Year 2022 Residential same store NOI $ 0.06 $ 0.28 Lease-Up NOI – 0.03 2023 and 2022 transaction activity impact on NOI, net – (0.02 ) Interest expense, net (0.01 ) 0.02 Corporate overhead – (0.03 ) Other items 0.01 (0.02 ) Net $ 0.06 $ 0.26 Same Store Results The following table shows the total same store results for the periods presented. Fourth Quarter 2023 vs. Fourth Quarter 2022 Fourth Quarter 2023 vs. Third Quarter 2023 Full Year 2023 vs. Full Year 2022 Apartment Units 77,676 78,163 76,297 Physical Occupancy 95.8% vs. 95.8% 95.8% vs. 96.0% 95.9% vs. 96.3% Revenues 3.9% 0.6% 5.6% Expenses 1.3% (3.6%) 4.3% NOI 5.0% 2.5% 6.2% 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 3.6% of total revenues for the year ended December 31, 2023. 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. Fourth Quarter 2023 vs. Fourth Quarter 2022 Fourth Quarter 2023 vs. Third Quarter 2023 Full Year 2023 vs. Full Year 2022 % Change % Change % Change Same Store Residential Revenues- comparable period Lease rates 3.5 % 0.3 % 6.2 % Leasing Concessions (0.4 %) (0.1 %) (0.2 %) Vacancy gain (loss) 0.0 % 0.1 % (0.5 %) Bad Debt, Net (1) 0.4 % (0.1 %) (0.4 %) Other (2) 0.5 % 0.1 % 0.6 % Same Store Residential Revenues- current period 4.0 % 0.3 % 5.7 % (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. The comparable full year 2023 period change in Bad Debt, Net was negatively impacted by the much higher governmental rental assistance received in 2022 versus 2023. 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 76,297 same store apartment units): January 2024 (1) Q4 2023 Q3 2023 Physical Occupancy 96.2% 95.8% 96.0% Percentage of Residents Renewing by quarter/month 61.0% 59.0% 54.0% New Lease Change (3.7%) (4.5%) 0.5% Renewal Rate Achieved 4.9% 5.1% 5.5% Blended Rate 1.0% 0.8% 3.1% (1) January 2024 results are preliminary as of January 25th and reflect the 2024 annual same store set including 77,472 apartment units. Investment Activity The Company did not acquire any operating properties during the fourth quarter of 2023. During the full year of 2023, the Company has acquired four operating properties, consisting of 1,183 apartment units, for an aggregate purchase price of approximately $366.3 million at a weighted average Acquisition Cap Rate of 5.5%. The average age of the properties acquired in 2023 was approximately 1 year. During the fourth quarter of 2023, the Company sold three properties located in our West Coast markets (San Francisco, Seattle and Los Angeles), consisting of 499 apartment units, for an aggregate sale price of approximately $184.5 million at a weighted average Disposition Yield of 5.8%, generating an Unlevered IRR of 14.4%. The average age of the properties sold in the fourth quarter of 2023 was approximately 40 years. During the full year of 2023, the Company sold 11 properties, consisting of 912 apartment units, for an aggregate sale price of approximately $379.9 million at a weighted average Disposition Yield of 5.5%, generating an Unlevered IRR of 11.4%. The average age of the properties sold in 2023 was approximately 30 years. Subsequent to the end of the fourth quarter of 2023, the Company sold a property in each of the Boston and Orange County markets, consisting of a total of 404 apartment units, for an aggregate sale price of approximately $189.0 million at a weighted average Disposition Yield of 5.6%. The average age of the properties sold subsequent to the end of the fourth quarter of 2023 was approximately 41 years. In 2023, the Company invested $282.8 million in Capital Expenditures to Real Estate for Same Store Properties. Approximately 40% of this spend was NOI-Enhancing. Of that amount, $79.3 million for 2,799 same store apartment units represented Renovation Expenditures with the remainder concentrated in sustainability and property-level technology spend. We expect a similar percentage of 2024 Capital Expenditures to Real Estate for Same Store Properties to be NOI-Enhancing. Capital Markets Activity During the fourth quarter of 2023, the Company repurchased and retired 864,386 of its common shares, at a weighted average purchase price of $56.79 per share, for an aggregate purchased amount of approximately $49.1 million. Following this repurchase activity, the Company’s Board of Trustees approved replenishing the Company’s share repurchase program authorization back to its original 13.0 million shares. First Quarter 2024 Guidance The Company has established guidance ranges for the first quarter of 2024 EPS, FFO per share and Normalized FFO per share as listed below: Q1 2024 Guidance EPS $0.77 to $0.81 FFO per share $0.87 to $0.91 Normalized FFO per share $0.88 to $0.92 The difference between the fourth quarter of 2023 actual EPS of $0.82 and the first quarter of 2024 EPS guidance midpoint of $0.79 is due primarily to higher expected property sale gains and the items described below. The difference between the fourth quarter of 2023 actual FFO of $1.00 per share and the first quarter of 2024 FFO guidance midpoint of $0.89 per share is due primarily to the items described below. The difference between the fourth quarter of 2023 actual Normalized FFO of $1.00 per share and the first quarter of 2024 Normalized FFO guidance midpoint of $0.90 per share is due primarily to: Expected Positive/(Negative) Impact First Quarter 2024 vs. Fourth Quarter 2023 Residential same store NOI (1) $ (0.05 ) 2024 and 2023 transaction activity impact on NOI, net (0.01 ) Corporate overhead (0.03 ) Other items (0.01 ) Net $ (0.10 ) Residential same store NOI impact is primarily driven by higher expected real estate taxes and utilities in the first quarter of 2024 versus the fourth quarter of 2023. This pattern of higher operating expenses is typical between the fourth quarter of the current year and the first quarter of the following year. 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 302 properties consisting of 80,191 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, Wednesday, January 31, 2024 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) Year Ended December 31, Quarter Ended December 31, 2023 2022 2023 2022 REVENUES Rental income $ 2,873,964 $ 2,735,180 $ 727,500 $ 699,703 EXPENSES Property and maintenance 514,575 483,865 123,138 118,588 Real estate taxes and insurance 412,114 388,412 99,507 85,513 Property management 119,804 110,304 29,490 27,269 General and administrative 60,716 58,710 11,581 11,677 Depreciation 888,709 882,168 226,788 214,272 Total expenses 1,995,918 1,923,459 490,504 457,319 Net gain (loss) on sales of real estate properties 282,539 304,325 155,505 (21 ) Operating income 1,160,585 1,116,046 392,501 242,363 Interest and other income 22,345 2,193 11,049 (2,651 ) Other expenses (29,419 ) (13,664 ) (8,902 ) (4,473 ) Interest: Expense incurred, net (269,556 ) (282,920 ) (68,674 ) (65,827 ) Amortization of deferred financing costs (8,941 ) (8,729 ) (1,918 ) (2,308 ) Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of land parcels 875,014 812,926 324,056 167,104 Income and other tax (expense) benefit (1,148 ) (900 ) (256 ) (175 ) Income (loss) from investments in unconsolidated entities (5,378 ) (5,031 ) (1,531 ) (1,575 ) Net income 868,488 806,995 322,269 165,354 Net (income) loss attributable to Noncontrolling Interests: Operating Partnership (26,710 ) (26,310 ) (9,536 ) (5,286 ) Partially Owned Properties (6,340 ) (3,774 ) (1,041 ) (1,048 ) Net income attributable to controlling interests 835,438 776,911 311,692 159,020 Preferred distributions (3,090 ) (3,090 ) (772 ) (772 ) Net income available to Common Shares $ 832,348 $ 773,821 $ 310,920 $ 158,248 Earnings per share – basic: Net income available to Common Shares $ 2.20 $ 2.06 $ 0.82 $ 0.42 Weighted average Common Shares outstanding 378,773 376,209 379,247 377,689 Earnings per share – diluted: Net income available to Common Shares $ 2.20 $ 2.05 $ 0.82 $ 0.42 Weighted average Common Shares outstanding 390,897 389,450 390,787 390,245 Distributions declared per Common Share outstanding $ 2.65 $ 2.50 $ 0.6625 $ 0.625 Equity Residential Consolidated Statements of Funds From Operations and Normalized Funds From Operations (Amounts in thousands except per share and Unit data) (Unaudited) Year Ended December 31, Quarter Ended December 31, 2023 2022 2023 2022 Net income $ 868,488 $ 806,995 $ 322,269 $ 165,354 Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties (6,340 ) (3,774 ) (1,041 ) (1,048 ) Preferred distributions (3,090 ) (3,090 ) (772 ) (772 ) Net income available to Common Shares and Units 859,058 800,131 320,456 163,534 Adjustments: Depreciation 888,709 882,168 226,788 214,272 Depreciation – Non-real estate additions (4,268 ) (4,306 ) (977 ) (1,117 ) Depreciation – Partially Owned Properties (2,130 ) (2,640 ) (531 ) (543 ) Depreciation – Unconsolidated Properties 2,860 2,898 939 1,001 Net (gain) loss on sales of unconsolidated entities - operating assets — (9 ) — — Net (gain) loss on sales of real estate properties (282,539 ) (304,325 ) (155,505 ) 21 Noncontrolling Interests share of gain (loss) on sales of real estate properties 2,336 — — — FFO available to Common Shares and Units 1,464,026 1,373,917 391,170 377,168 Adjustments (see note for additional detail): Write-off of pursuit costs 3,647 4,780 908 1,484 Debt extinguishment and preferred share redemption (gains) losses 1,143 4,664 — 348 Non-operating asset (gains) losses (13,323 ) 2,368 (8,588 ) 3,542 Other miscellaneous items 21,588 (13,901 ) 6,757 (15,733 ) Normalized FFO available to Common Shares and Units $ 1,477,081 $ 1,371,828 $ 390,247 $ 366,809 FFO $ 1,467,116 $ 1,377,007 $ 391,942 $ 377,940 Preferred distributions (3,090 ) (3,090 ) (772 ) (772 ) FFO available to Common Shares and Units $ 1,464,026 $ 1,373,917 $ 391,170 $ 377,168 FFO per share and Unit – basic $ 3.75 $ 3.54 $ 1.00 $ 0.97 FFO per share and Unit – diluted $ 3.75 $ 3.53 $ 1.00 $ 0.97 Normalized FFO $ 1,480,171 $ 1,374,918 $ 391,019 $ 367,581 Preferred distributions (3,090 ) (3,090 ) (772 ) (772 ) Normalized FFO available to Common Shares and Units $ 1,477,081 $ 1,371,828 $ 390,247 $ 366,809 Normalized FFO per share and Unit – basic $ 3.79 $ 3.54 $ 1.00 $ 0.94 Normalized FFO per share and Unit – diluted $ 3.78 $ 3.52 $ 1.00 $ 0.94 Weighted average Common Shares and Units outstanding – basic 389,954 388,045 389,844 389,357 Weighted average Common Shares and Units outstanding – diluted 390,897 389,450 390,787 390,245 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) December 31, December 31, 2023 2022 ASSETS Land $ 5,581,876 $ 5,580,878 Depreciable property 22,938,426 22,334,369 Projects under development 78,036 112,940 Land held for development 114,300 60,567 Investment in real estate 28,712,638 28,088,754 Accumulated depreciation (9,810,337 ) (9,027,850 ) Investment in real estate, net 18,902,301 19,060,904 Investments in unconsolidated entities1 282,049 279,024 Cash and cash equivalents 50,743 53,869 Restricted deposits 89,252 83,303 Right-of-use assets 457,266 462,956 Other assets 252,953 278,206 Total assets $ 20,034,564 $ 20,218,262 LIABILITIES AND EQUITY Liabilities: Mortgage notes payable, net $ 1,632,902 $ 1,953,438 Notes, net 5,348,417 5,342,329 Line of credit and commercial paper 409,131 129,955 Accounts payable and accrued expenses 104,430 96,028 Accrued interest payable 65,716 66,310 Lease liabilities 311,640 308,748 Other liabilities 255,543 306,941 Security deposits 69,178 68,940 Distributions payable 259,231 244,621 Total liabilities 8,456,188 8,517,310 Commitments and contingencies Redeemable Noncontrolling Interests – Operating Partnership 289,248 318,273 Equity: Shareholders' equity: Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized; 745,600 shares issued and outstanding as of December 31, 2023 and December 31, 2022 37,280 37,280 Common Shares of beneficial interest, $0.01 par value; 1,000,000,000 shares authorized; 379,291,417 shares issued and outstanding as of December 31, 2023 and 378,429,708 shares issued and outstanding as of December 31, 2022 3,793 3,784 Paid in capital 9,601,866 9,476,085 Retained earnings 1,437,185 1,658,837 Accumulated other comprehensive income (loss) 5,704 (2,547 ) Total shareholders’ equity 11,085,828 11,173,439 Noncontrolling Interests: Operating Partnership 202,306 209,961 Partially Owned Properties 994 (721 ) Total Noncontrolling Interests 203,300 209,240 Total equity 11,289,128 11,382,679 Total liabilities and equity $ 20,034,564 $ 20,218,262 1 Includes $220.2 million and $218.0 million in unconsolidated development projects as of December 31, 2023 and December 31, 2022, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects. Equity Residential Portfolio Summary As of December 31, 2023 % of Stabilized Average Apartment Budgeted Rental Markets/Metro Areas Properties Units NOI Rate Established Markets: Los Angeles 58 14,732 17.1 % $ 2,929 Orange County 13 4,028 5.4 % 2,873 San Diego 12 2,878 4.0 % 3,108 Subtotal – Southern California 83 21,638 26.5 % 2,942 Washington, D.C. 48 15,028 16.3 % 3,303 San Francisco 43 11,667 15.4 % 2,657 New York 34 8,536 14.1 % 4,566 Boston 27 7,170 11.8 % 3,574 Seattle 44 9,267 10.4 % 2,561 Subtotal – Established Markets 279 73,306 94.5 % 3,145 Expansion Markets: Denver 9 2,792 2.8 % 2,411 Atlanta 7 2,111 1.6 % 2,169 Dallas/Ft. Worth 4 1,241 0.7 % 1,935 Austin 3 741 0.4 % 1,819 Subtotal – Expansion Markets 23 6,885 5.5 % 2,188 Total 302 80,191 100.0 % $ 3,063 Properties Apartment Units Wholly Owned Properties 288 77,131 Partially Owned Properties – Consolidated 14 3,060 302 80,191 Note: Projects under development are not included in the Portfolio Summary until construction has been completed. Equity Residential Portfolio Rollforward Q4 2023 ($ in thousands) Apartment Disposition Properties Units Sales Price Yield 9/30/2023 305 80,683 Dispositions: Consolidated Rental Properties (3 ) (499 ) $ (184,493 ) (5.8 %) Configuration Changes — 7 12/31/2023 302 80,191 Portfolio Rollforward 2023 ($ in thousands) Apartment Purchase Acquisition Properties Units Price Cap Rate 12/31/2022 308 79,597 Acquisitions: Consolidated Rental Properties 2 577 $ 189,734 5.1 % Consolidated Rental Properties – Not Stabilized (1) 2 606 $ 176,600 5.9 % Disposition Sales Price Yield Dispositions: Consolidated Rental Properties (11 ) (912 ) $ (379,893 ) (5.5 %) Completed Developments – Consolidated 1 312 Configuration Changes — 11 12/31/2023 302 80,191 (1) The Company acquired two properties in the Atlanta market during the year ended December 31, 2023 that are in lease-up and are expected to stabilize in their second year of ownership at the weighted average Acquisition Cap Rate listed above. Equity Residential Fourth Quarter 2023 vs. Fourth Quarter 2022 Same Store Results/Statistics Including 77,676 Same Store Apartment Units ($ in thousands except for Average Rental Rate) Fourth Quarter 2023 Fourth Quarter 2022 Residential % Change Non- Residential % Change Total % Change Residential Non- Residential Total Revenues $ 685,836 (1) 4.0% $ 25,920 (0.6%) $ 711,756 3.9% Revenues $ 659,233 $ 26,084 $ 685,317 Expenses $ 209,164 1.1% $ 7,245 7.7% $ 216,409 1.3% Expenses $ 206,885 $ 6,728 $ 213,613 NOI $ 476,672 5.4% $ 18,675 (3.5%) $ 495,347 5.0% NOI $ 452,348 $ 19,356 $ 471,704 Average Rental Rate $ 3,073 4.0% Average Rental Rate $ 2,954 Physical Occupancy 95.8 % 0.0% Physical Occupancy 95.8 % Turnover 9.4 % (0.1%) Turnover 9.5 % Fourth Quarter 2023 vs. Third Quarter 2023 Same Store Results/Statistics Including 78,163 Same Store Apartment Units ($ in thousands except for Average Rental Rate) Fourth Quarter 2023 Third Quarter 2023 Residential % Change Non- Residential % Change Total % Change Residential Non- Residential Total Revenues $ 689,458 (1) 0.3% $ 25,920 8.1% $ 715,378 0.6% Revenues $ 687,259 $ 23,971 (2) $ 711,230 Expenses $ 210,167 (3.9%) $ 7,268 5.2% $ 217,435 (3.6%) Expenses $ 218,723 $ 6,906 $ 225,629 NOI $ 479,291 2.3% $ 18,652 9.3% $ 497,943 2.5% NOI $ 468,536 $ 17,065 $ 485,601 Average Rental Rate $ 3,071 0.5% Average Rental Rate $ 3,056 Physical Occupancy 95.8 % (0.2%) Physical Occupancy 96.0 % Turnover 9.4 % (4.4%) Turnover 13.8 % 2023 vs. 2022 Same Store Results/Statistics Including 76,297 Same Store Apartment Units ($ in thousands except for Average Rental Rate) 2023 2022 Residential % Change Non- Residential % Change Total % Change Residential Non- Residential Total Revenues $ 2,657,868 (1) 5.7% $ 96,843 (2) 1.9% $ 2,754,711 5.6% Revenues $ 2,514,711 $ 95,055 $ 2,609,766 Expenses $ 846,546 4.1% $ 26,902 8.9% $ 873,448 4.3% Expenses $ 812,894 $ 24,708 $ 837,602 NOI $ 1,811,322 6.4% $ 69,941 (0.6%) $ 1,881,263 6.2% NOI $ 1,701,817 $ 70,347 $ 1,772,164 Average Rental Rate $ 3,029 6.2% Average Rental Rate $ 2,853 Physical Occupancy 95.9 % (0.4%) Physical Occupancy 96.3 % Turnover 43.7 % 0.1% Turnover 43.6 % (1) See page 12 for Same Store Residential Revenues with Leasing Concessions reflected on a cash basis. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail. (2) Includes the negative impact from the non-cash write-off of approximately $1.5 million in straight-line receivables during the third quarter of 2023 due to the bankruptcy of Rite Aid. Equity Residential Same Store Residential Revenues – GAAP to Cash Basis (1) ($ in thousands) Fourth Quarter 2023 vs. Fourth Quarter 2022 Fourth Quarter 2023 vs. Third Quarter 2023 2023 vs. 2022 77,676 Same Store Apartment Units 78,163 Same Store Apartment Units 76,297 Same Store Apartment Units Q4 2023 Q4 2022 Q4 2023 Q3 2023 2023 2022 Same Store Residential Revenues (GAAP Basis) $ 685,836 $ 659,233 $ 689,458 $ 687,259 $ 2,657,868 $ 2,514,711 Leasing Concessions amortized 4,531 2,153 4,822 4,100 12,803 8,711 Leasing Concessions granted (2) (5,074 ) (2,915 ) (5,399 ) (5,427 ) (17,750 ) (6,285 ) Same Store Residential Revenues with Leasing Concessions on a cash basis $ 685,293 $ 658,471 $ 688,881 $ 685,932 $ 2,652,921 $ 2,517,137 % change - GAAP revenue 4.0 % 0.3 % 5.7 % % change - cash revenue 4.1 % 0.4 % 5.4 % (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 and Seattle. Same Store Net Operating Income By Quarter Including 76,297 Same Store Apartment Units ($ in thousands) Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Same store revenues $ 696,250 $ 693,230 $ 688,481 $ 676,750 $ 671,116 Same store expenses 212,250 219,850 215,983 225,365 209,407 Same store NOI (includes Residential and Non-Residential) $ 484,000 $ 473,380 $ 472,498 $ 451,385 $ 461,709 Equity Residential Same Store Resident/Tenant Accounts Receivable Balances Including 76,297 Same Store Apartment Units ($ in thousands) Residential Non-Residential Balance Sheet (Other assets): December 31, 2023 September 30, 2023 December 31, 2023 September 30, 2023 Resident/tenant accounts receivable balances $ 20,910 $ 24,674 $ 2,822 $ 2,714 Allowance for doubtful accounts (15,419 ) (19,462 ) (1,849 ) (1,703 ) Net receivable balances $ 5,491 $ 5,212 $ 973 $ 1,011 Straight-line receivable balances $ 7,944 (1) $ 7,423 $ 11,810 $ 11,800 (2) (1) Total same store Residential Leasing Concessions granted in the fourth quarter of 2023 were approximately $5.0 million. The straight-line receivable balance of $7.9 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in 2024. (2) During the third quarter of 2023, the Company recorded a non-cash write-off of approximately $1.5 million in straight-line receivables due to the bankruptcy of Rite Aid. Same Store Residential Bad Debt Including 76,297 Same Store Apartment Units ($ in thousands) Income Statement (Rental income): Q4 2023 Q3 2023 Q4 2022 2023 2022 Bad debts before governmental rental assistance $ 9,341 $ 8,940 $ 13,574 $ 39,591 $ 58,785 Governmental rental assistance received (368 ) (406 ) (2,275 ) (2,587 ) (32,699 ) Bad Debt, Net $ 8,973 $ 8,534 $ 11,299 $ 37,004 $ 26,086 Bad Debt, Net as a % of Same Store Residential Revenues 1.3 % 1.3 % 1.7 % 1.4 % 1.0 % Equity Residential Fourth Quarter 2023 vs. Fourth Quarter 2022 Same Store Residential Results/Statistics by Market Increase (Decrease) from Prior Year's Quarter Markets/Metro Areas Apartment Units Q4 2023 % of Actual NOI Q4 2023 Average Rental Rate Q4 2023 Weighted Average Physical Occupancy % Q4 2023 Turnover Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Los Angeles 14,135 17.3 % $ 2,909 95.1 % 10.9 % 5.2 % 6.9 % 4.5 % 6.0 % (0.7 %) 0.8 % Orange County 4,028 5.5 % 2,873 96.3 % 8.7 % 6.5 % 4.5 % 7.0 % 7.0 % (0.4 %) 0.0 % San Diego 2,878 4.2 % 3,108 95.3 % 11.3 % 6.6 % 2.8 % 7.8 % 7.4 % (0.7 %) 2.5 % Subtotal – Southern California 21,041 27.0 % 2,929 95.3 % 10.6 % 5.6 % 6.1 % 5.5 % 6.4 % (0.7 %) 0.9 % Washington, D.C. 14,716 16.6 % 2,654 97.0 % 8.2 % 5.3 % (0.2 %) 7.9 % 4.9 % 0.5 % (1.1 %) San Francisco 11,245 15.8 % 3,307 95.4 % 10.6 % 2.1 % 1.2 % 2.4 % 2.3 % (0.2 %) 1.1 % New York 8,536 14.3 % 4,566 96.6 % 6.9 % 4.2 % 0.2 % 7.1 % 4.3 % (0.1 %) (0.7 %) Boston 7,170 11.1 % 3,574 95.8 % 8.6 % 5.8 % 3.8 % 6.6 % 6.0 % (0.1 %) 0.2 % Seattle 9,266 10.2 % 2,561 95.3 % 8.2 % (0.4 %) 0.5 % (0.8 %) (0.8 %) 0.4 % (1.7 %) Denver 2,505 2.5 % 2,417 96.0 % 11.5 % 1.8 % 4.8 % 0.6 % 2.2 % (0.1 %) (0.5 %) Other Expansion Markets 3,197 2.5 % 1,996 95.0 % 13.0 % 3.6 % (23.3 %) 27.6 % 1.0 % 2.2 % 0.0 % Total 77,676 100.0 % $ 3,073 95.8 % 9.4 % 4.0 % 1.1 % 5.4 % 4.0 % 0.0 % (0.1 %) Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.4% of total revenues for the year ended December 31, 2023. Equity Residential Fourth Quarter 2023 vs. Third Quarter 2023 Same Store Residential Results/Statistics by Market Increase (Decrease) from Prior Quarter Markets/Metro Areas Apartment Units Q4 2023 % of Actual NOI Q4 2023 Average Rental Rate Q4 2023 Weighted Average Physical Occupancy % Q4 2023 Turnover Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Los Angeles 14,135 17.1 % $ 2,909 95.1 % 10.9 % (0.3 %) (2.6 %) 0.8 % 0.4 % (0.6 %) (1.4 %) Orange County 4,028 5.5 % 2,873 96.3 % 8.7 % 1.2 % (4.2 %) 2.7 % 1.7 % (0.4 %) (2.2 %) San Diego 2,878 4.2 % 3,108 95.3 % 11.3 % 1.4 % (3.3 %) 2.9 % 1.5 % 0.0 % (1.2 %) Subtotal – Southern California 21,041 26.8 % 2,929 95.3 % 10.6 % 0.3 % (2.9 %) 1.5 % 0.8 % (0.6 %) (1.4 %) Washington, D.C. 14,716 16.5 % 2,654 97.0 % 8.2 % 0.6 % (4.4 %) 2.9 % 0.4 % 0.2 % (6.2 %) San Francisco 11,445 15.9 % 3,302 95.3 % 10.9 % (0.4 %) (2.7 %) 0.7 % (0.2 %) (0.2 %) (2.2 %) New York 8,536 14.2 % 4,566 96.6 % 6.9 % 0.8 % (3.7 %) 4.0 % 0.8 % 0.1 % (5.8 %) Boston 7,170 11.0 % 3,574 95.8 % 8.6 % 1.1 % 1.3 % 1.1 % 1.4 % (0.3 %) (7.4 %) Seattle 9,266 10.2 % 2,561 95.3 % 8.2 % (0.4 %) (7.4 %) 2.5 % (0.6 %) 0.1 % (6.1 %) Denver 2,792 2.9 % 2,411 96.0 % 11.8 % (0.3 %) (4.0 %) 1.2 % 0.4 % (0.5 %) (6.4 %) Other Expansion Markets 3,197 2.5 % 1,996 95.0 % 13.0 % 0.5 % (18.8 %) 15.2 % 0.1 % 0.4 % (5.0 %) Total 78,163 100.0 % $ 3,071 95.8 % 9.4 % 0.3 % (3.9 %) 2.3 % 0.5 % (0.2 %) (4.4 %) Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.4% of total revenues for the year ended December 31, 2023. Equity Residential 2023 vs. 2022 Same Store Residential Results/Statistics by Market Increase (Decrease) from Prior Year Markets/Metro Areas Apartment Units 2023 % of Actual NOI 2023 Average Rental Rate 2023 Weighted Average Physical Occupancy % 2023 Turnover Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Los Angeles 14,135 17.6 % $ 2,861 95.3 % 44.5 % 3.7 % (1) 8.5 % 1.7 % 5.1 % (1.3 %) 5.8 % Orange County 4,028 5.6 % 2,801 96.3 % 37.4 % 6.3 % 8.3 % 5.7 % 7.1 % (0.7 %) 2.9 % San Diego 2,706 4.0 % 2,993 95.4 % 42.3 % 6.9 % 5.6 % 7.2 % 8.2 % (1.3 %) 4.2 % Subtotal – Southern California 20,869 27.2 % 2,867 95.5 % 42.9 % 4.6 % 8.1 % 3.3 % 5.9 % (1.2 %) 5.1 % San Francisco 11,245 16.4 % 3,290 95.6 % 44.1 % 3.6 % 4.2 % 3.3 % 4.2 % (0.6 %) 2.4 % Washington, D.C. 14,400 16.3 % 2,597 96.8 % 40.5 % 6.0 % 1.4 % 8.3 % 5.9 % 0.0 % (2.6 %) New York 8,536 14.4 % 4,504 96.8 % 37.2 % 10.5 % 2.8 % 16.7 % 10.7 % (0.1 %) (5.2 %) Seattle 9,266 10.8 % 2,579 95.2 % 48.0 % 3.0 % 3.3 % 2.9 % 2.9 % 0.1 % (3.6 %) Boston 6,700 10.3 % 3,422 96.0 % 43.9 % 7.1 % 3.5 % 8.7 % 7.4 % (0.1 %) (1.5 %) Denver 2,505 2.7 % 2,404 96.3 % 58.1 % 4.6 % 8.2 % 3.2 % 4.6 % 0.0 % (2.2 %) Other Expansion Markets 2,776 1.9 % 1,987 94.7 % 57.1 % 4.7 % 1.4 % 7.4 % 5.1 % (0.6 %) 1.8 % Total 76,297 100.0 % $ 3,029 95.9 % 43.7 % 5.7 % 4.1 % 6.4 % 6.2 % (0.4 %) 0.1 % (1) Excluding Bad Debt, Net, which includes the positive impact of governmental rental assistance in the year ended December 31, 2022, same store revenue growth would have been 5.3%. Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.4% of total revenues for the year ended December 31, 2023. Equity Residential Same Store Residential Net Effective Lease Pricing Statistics For 76,297 Same Store Apartment Units New Lease Change (1) Renewal Rate Achieved (1) Blended Rate (1) Markets/Metro Areas Q4 2023 Q3 2023 Q4 2023 Q3 2023 Q4 2023 Q3 2023 Southern California (3.0 %) 2.0 % 5.2 % 6.5 % 1.3 % 4.2 % San Francisco (9.4 %) (3.9 %) 4.1 % 4.4 % (3.1 %) 0.0 % Washington, D.C. 0.8 % 4.3 % 6.1 % 6.7 % 3.9 % 5.5 % New York (2.2 %) 1.5 % 4.5 % 5.3 % 2.2 % 3.7 % Seattle (8.4 %) (4.4 %) 5.7 % 2.5 % (1.4 %) (0.9 %) Boston (1.2 %) 3.7 % 5.3 % 6.1 % 2.7 % 5.0 % Denver (5.0 %) 0.1 % 4.7 % 5.3 % (0.3 %) 2.4 % Other Expansion Markets (12.5 %) (8.5 %) 4.4 % 3.4 % (5.5 %) (3.8 %) Total (4.5 %) 0.5 % 5.1 % 5.5 % 0.8 % 3.1 % (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions. See page 4 for January 2024 preliminary data. Equity Residential Fourth Quarter 2023 vs. Fourth Quarter 2022 Total Same Store Operating Expenses Including 77,676 Same Store Apartment Units ($ in thousands) Q4 2023 Q4 2022 $ Change (1) % Change % of Q4 2023 Operating Expenses Real estate taxes $ 89,064 $ 89,248 $ (184 ) (0.2 %) 41.2 % On-site payroll 42,352 41,696 656 1.6 % 19.6 % Utilities 34,709 34,672 37 0.1 % 16.0 % Repairs and maintenance 27,336 27,008 328 1.2 % 12.6 % Insurance 8,371 7,377 994 13.5 % 3.9 % Leasing and advertising 2,674 2,673 1 0.0 % 1.2 % Other on-site operating expenses 11,903 10,939 964 8.8 % 5.5 % Total Same Store Operating Expenses (2) (includes Residential and Non-Residential) $ 216,409 $ 213,613 $ 2,796 1.3 % 100.0 % 2023 vs. 2022 Total Same Store Operating Expenses Including 76,297 Same Store Apartment Units ($ in thousands) 2023 2022 $ Change (1) % Change % of 2023 Operating Expenses Real estate taxes $ 356,679 $ 350,928 $ 5,751 1.6 % 40.8 % On-site payroll 169,280 161,297 7,983 4.9 % 19.4 % Utilities 136,982 133,579 3,403 2.5 % 15.7 % Repairs and maintenance 117,559 107,702 9,857 9.2 % 13.4 % Insurance 33,063 28,999 4,064 14.0 % 3.8 % Leasing and advertising 10,194 10,400 (206 ) (2.0 %) 1.2 % Other on-site operating expenses 49,691 44,697 4,994 11.2 % 5.7 % Total Same Store Operating Expenses (2) (includes Residential and Non-Residential) $ 873,448 $ 837,602 $ 35,846 4.3 % 100.0 % (1) The year-over-year changes were primarily driven by the following factors: Real estate taxes – Increase due to modest escalation in rates and assessed values. On-site payroll – Increase due primarily to fewer staffing vacancies compared to the same periods of 2022 and elevated employee benefit costs, partially offset by the impact of innovation initiatives. Utilities – Increase primarily driven by higher water, sewer and trash expense. Repairs and maintenance – Increase was impacted by increased outsourcing due to higher internal staffing utilization to address issues from California rain storms that occurred earlier in 2023. Insurance – Increase due to higher premiums on property insurance renewal due to challenging conditions in the insurance market. 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 December 31, 2023 ($ in thousands) Debt Balances (1) % of Total Weighted Average Rates (1) Weighted Average Maturities (years) Secured $ 1,632,902 22.1 % 3.68 % 7.9 Unsecured 5,757,548 77.9 % 3.61 % 8.2 Total $ 7,390,450 100.0 % 3.63 % 8.1 Fixed Rate Debt: Secured – Conventional $ 1,398,598 18.9 % 3.60 % 7.4 Unsecured – Public 5,348,417 72.4 % 3.51 % 8.8 Fixed Rate Debt 6,747,015 91.3 % 3.53 % 8.5 Floating Rate Debt: Secured – Conventional — — 7.18 % — Secured – Tax Exempt 234,304 3.2 % 3.53 % 10.6 Unsecured – Revolving Credit Facility — — — 3.8 Unsecured – Commercial Paper Program (2) 409,131 5.5 % 5.47 % — Floating Rate Debt 643,435 8.7 % 4.79 % 4.0 Total $ 7,390,450 100.0 % 3.63 % 8.1 (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. (2) At December 31, 2023, the weighted average maturity of commercial paper outstanding was 14 days. The weighted average amount outstanding for the year ended December 31, 2023 was approximately $276.0 million. Note: The Company capitalized interest of approximately $12.3 million and $7.1 million during the years ended December 31, 2023 and 2022, respectively. The Company capitalized interest of approximately $2.7 million and $2.9 million during the quarters ended December 31, 2023 and 2022, respectively. Equity Residential Debt Maturity Schedule as of December 31, 2023 ($ 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 $ — $ 416,200 (2) $ 416,200 5.6 % N/A 5.63 % 2025 450,000 8,100 458,100 6.1 % 3.38 % 3.38 % 2026 592,025 9,000 601,025 8.0 % 3.58 % 3.59 % 2027 400,000 9,800 409,800 5.5 % 3.25 % 3.26 % 2028 900,000 10,700 910,700 12.2 % 3.79 % 3.79 % 2029 888,120 11,500 899,620 12.1 % 3.30 % 3.31 % 2030 1,148,462 12,700 1,161,162 15.6 % 2.53 % 2.55 % 2031 528,500 39,800 568,300 7.6 % 1.94 % 2.09 % 2032 — 28,000 28,000 0.4 % N/A 3.82 % 2033 550,000 2,300 552,300 7.4 % 5.22 % 5.21 % 2034+ 1,350,850 108,600 1,459,450 19.5 % 4.39 % 4.25 % Subtotal 6,807,957 656,700 7,464,657 100.0 % 3.53 % 3.64 % Deferred Financing Costs and Unamortized (Discount) (60,942 ) (13,265 ) (74,207 ) N/A N/A N/A Total $ 6,747,015 $ 643,435 $ 7,390,450 100.0 % 3.53 % 3.64 % (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. (2) Includes $410.0 million in principal outstanding on the Company's Commercial Paper Program. Equity Residential Selected Unsecured Public Debt Covenants December 31, September 30, 2023 2023 Debt to Adjusted Total Assets (not to exceed 60%) 26.5% 26.9% Secured Debt to Adjusted Total Assets (not to exceed 40%) 6.7% 6.7% Consolidated Income Available for Debt Service to Maximum Annual Service Charges (must be at least 1.5 to 1) 6.19 6.08 Total Unencumbered Assets to Unsecured Debt (must be at least 125%) 510.7% 502.3% Note: These selected covenants represent the most restrictive financial covenants relating to ERP Operating Limited Partnership's ("ERPOP") outstanding public debt securities. Equity Residential is the general partner of ERPOP. Selected Credit Ratios December 31, September 30, 2023 2023 Total debt to Normalized EBITDAre 4.17x 4.28x Net debt to Normalized EBITDAre 4.12x 4.24x Unencumbered NOI as a % of total NOI 89.8% 89.8% Note: See Normalized EBITDAre Reconciliations for detail. Equity Residential Capital Structure as of December 31, 2023 (Amounts in thousands except for share/unit and per share amounts) Secured Debt $ 1,632,902 22.1 % Unsecured Debt 5,757,548 77.9 % Total Debt 7,390,450 100.0 % 23.6 % Common Shares (includes Restricted Shares) 379,291,417 97.0 % Units (includes OP Units and Restricted Units) 11,581,306 3.0 % Total Shares and Units 390,872,723 100.0 % Common Share Price at December 31, 2023 $ 61.16 23,905,776 99.8 % Perpetual Preferred Equity (see below) 37,280 0.2 % Total Equity 23,943,056 100.0 % 76.4 % Total Market Capitalization $ 31,333,506 100.0 % Perpetual Preferred Equity as of December 31, 2023 (Amounts in thousands except for share and per share amounts) Series Call Date Outstanding Shares Liquidation Value Annual Dividend Per Share Annual Dividend Amount Preferred Shares: 8.29% Series K 12/10/26 745,600 $ 37,280 $ 4.145 $ 3,091 Equity Residential Common Share and Unit Weighted Average Amounts Outstanding 2023 2022 Q4 2023 Q4 2022 Weighted Average Amounts Outstanding for Net Income Purposes: Common Shares - basic 378,773,303 376,209,084 379,247,194 377,688,991 Shares issuable from assumed conversion/vesting of: - OP Units 11,180,536 11,836,257 10,596,465 11,668,107 - long-term compensation shares/units 942,712 1,401,485 942,942 887,549 - ATM forward sales — 3,092 — — Total Common Shares and Units - diluted 390,896,551 389,449,918 390,786,601 390,244,647 Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes: Common Shares - basic 378,773,303 376,209,084 379,247,194 377,688,991 OP Units - basic 11,180,536 11,836,257 10,596,465 11,668,107 Total Common Shares and OP Units - basic 389,953,839 388,045,341 389,843,659 389,357,098 Shares issuable from assumed conversion/vesting of: - long-term compensation shares/units 942,712 1,401,485 942,942 887,549 - ATM forward sales — 3,092 — — Total Common Shares and Units - diluted 390,896,551 389,449,918 390,786,601 390,244,647 Period Ending Amounts Outstanding: Common Shares (includes Restricted Shares) 379,291,417 378,429,708 Units (includes OP Units and Restricted Units) 11,581,306 12,429,737 Total Shares and Units 390,872,723 390,859,445 Equity Residential Development and Lease-Up Projects as of December 31, 2023 (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: Laguna Clara II Santa Clara, CA 100% 225 $ 152,621 $ 78,036 $ — 53% Q2 2022 Q4 2024 Q1 2025 Q4 2025 – / – Projects Under Development - Consolidated 225 152,621 78,036 — Projects Completed Not Stabilized: Reverb (fka 9th and W) (2) Washington, D.C. 92% 312 108,027 104,651 — 100% Q3 2021 Q2 2023 Q2 2023 Q3 2024 82% / 79% Projects Completed Not Stabilized - Consolidated 312 108,027 104,651 — UNCONSOLIDATED: Projects Under Development: Alloy Sunnyside (3) Denver, CO 80% 209 70,004 62,071 27,304 94% Q3 2021 Q2 2024 Q2 2024 Q1 2025 – / – Alexan Harrison (3) Harrison, NY 62% 450 200,664 175,135 77,058 92% Q3 2021 Q1 2024 Q4 2024 Q2 2026 – / – Solana Beeler Park (3) Denver, CO 90% 270 85,206 56,178 22,858 64% Q4 2021 Q2 2024 Q3 2024 Q1 2025 – / – Remy (Toll) (3) Frisco, TX 75% 357 98,937 77,170 31,494 80% Q1 2022 Q1 2024 Q4 2024 Q3 2025 – / – Sadie (fka Settler) (Toll) (3) Fort Worth, TX 75% 362 82,775 55,522 14,944 69% Q2 2022 Q2 2024 Q3 2024 Q3 2025 – / – Lyle (Toll) (2) Dallas, TX 75% 334 86,332 52,914 21,962 66% Q3 2022 Q2 2024 Q3 2024 Q1 2026 – / – Projects Under Development - Unconsolidated 1,982 623,918 478,990 195,620 Total Development Projects - Consolidated 537 260,648 182,687 — Total Development Projects - Unconsolidated 1,982 623,918 478,990 195,620 Total Development Projects 2,519 $ 884,566 $ 661,677 $ 195,620 NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS Total Budgeted Capital Cost Q4 2023 NOI Projects Under Development - Consolidated $ 152,621 $ — Projects Completed Not Stabilized - Consolidated 108,027 741 Projects Under Development - Unconsolidated 623,918 (108 ) $ 884,566 $ 633 (1) Except for Reverb where the Company paid off the third party construction loan in the third quarter of 2023, all non-wholly owned projects are being partially funded with project-specific construction loans. None of these loans are recourse to the Company. (2) The land parcels under these projects are subject to long-term ground leases. (3) The Total Budgeted Capital Cost on these projects increased by an aggregate of $13.0 million or 2.5% of initial budget primarily due to higher than budgeted interest incurred on construction loans. Equity Residential Capital Expenditures to Real Estate For the Year Ended December 31, 2023 (Amounts in thousands except for apartment unit and per apartment unit amounts) Same Store Properties Non-Same Store Properties/Other Total Same Store Avg. Per Apartment Unit Total Apartment Units 76,297 3,894 80,191 Building Improvements $ 137,058 $ 11,907 (2) $ 148,965 $ 1,796 Renovation Expenditures 79,291 (1) 22,863 (2) 102,154 1,039 Replacements 66,496 1,727 68,223 872 Capital Expenditures to Real Estate (3) $ 282,845 $ 36,497 $ 319,342 $ 3,707 (1) Renovation Expenditures on 2,799 same store apartment units for the year ended December 31, 2023 approximated $28,328 per apartment unit renovated. (2) Includes expenditures for two properties that have been removed from same store while undergoing major renovations requiring a significant number of apartment units to be vacated to accommodate the extensive planned improvements. The renovation at one property is expected to continue through the second quarter of 2024 with the other continuing into 2025. (3) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. Note: Approximately 40% of the Company's 2023 Capital Expenditures to Real Estate for Same Store Properties were NOI-Enhancing, including the $79.3 million of Renovation Expenditures noted above, with the remainder concentrated in sustainability and property-level technology spend. Equity Residential Normalized EBITDAre Reconciliations (Amounts in thousands) Trailing Twelve Months 2023 2022 December 31, 2023 September 30, 2023 Q4 Q3 Q2 Q1 Q4 Net income $ 868,488 $ 711,573 $ 322,269 $ 181,286 $ 144,862 $ 220,071 $ 165,354 Interest expense incurred, net 269,556 266,709 68,674 68,891 65,590 66,401 65,827 Amortization of deferred financing costs 8,941 9,331 1,918 3,027 2,017 1,979 2,308 Amortization of above/below market lease intangibles 4,464 4,464 1,116 1,116 1,116 1,116 1,116 Depreciation 888,709 876,193 226,788 224,736 221,355 215,830 214,272 Income and other tax expense (benefit) 1,148 1,067 256 258 336 298 175 EBITDA 2,041,306 1,869,337 621,021 479,314 435,276 505,695 449,052 Net (gain) loss on sales of real estate properties (282,539 ) (127,013 ) (155,505 ) (26,912 ) 87 (100,209 ) 21 EBITDAre 1,758,767 1,742,324 465,516 452,402 435,363 405,486 449,073 Write-off of pursuit costs (other expenses) 3,647 4,223 908 746 661 1,332 1,484 (Income) loss from investments in unconsolidated entities - operations 5,378 5,422 1,531 1,242 1,223 1,382 1,575 Realized (gain) loss on investment securities (interest and other income) (1,504 ) 1,714 7 (1,598 ) — 87 3,225 Unrealized (gain) loss on investment securities (interest and other income) (13,466 ) (4,461 ) (9,005 ) (4,461 ) — — — Insurance/litigation settlement or reserve income (interest and other income) (1,055 ) (1,067 ) — (62 ) (193 ) (800 ) (12 ) Insurance/litigation/environmental settlement or reserve expense (other expenses) 17,310 12,361 5,694 3,104 3,513 4,999 745 Advocacy contributions (other expenses) 2,142 527 1,665 150 320 7 50 Data transformation project (other expenses) 3,780 4,900 — 295 1,405 2,080 1,120 Real estate tax transaction adjustment (real estate taxes) — (18,072 ) — — — — (18,072 ) Other (589 ) 449 (602 ) 1 6 6 436 Normalized EBITDAre $ 1,774,410 $ 1,748,320 $ 465,714 $ 451,819 $ 442,298 $ 414,579 $ 439,624 Balance Sheet Items: December 31, 2023 September 30, 2023 Total debt $ 7,390,450 $ 7,479,257 Cash and cash equivalents (50,743 ) (39,250 ) Mortgage principal reserves/sinking funds (29,270 ) (30,234 ) Net debt $ 7,310,437 $ 7,409,773 Note: EBITDA, EBITDAre and Normalized EBITDAre do not include any adjustments for the Company’s share of partially owned unconsolidated entities or the minority partner’s share of partially owned consolidated entities due to the immaterial size of the Company’s partially owned portfolio. Equity Residential Adjustments from FFO to Normalized FFO (Amounts in thousands) Year Ended December 31, Quarter Ended December 31, 2023 2022 Variance 2023 2022 Variance Impairment – non-operating real estate assets $ — $ — $ — $ — $ — $ — Write-off of pursuit costs (other expenses) 3,647 4,780 (1,133 ) 908 1,484 (576 ) Write-off of unamortized deferred financing costs (interest expense) 1,143 717 426 — 348 (348 ) Write-off of unamortized (premiums)/discounts/OCI (interest expense) — 3,947 (3,947 ) — — — Debt extinguishment and preferred share redemption (gains) losses 1,143 4,664 (3,521 ) — 348 (348 ) (Income) loss from investments in unconsolidated entities ─ non-operating assets 1,647 1,204 443 410 317 93 Realized (gain) loss on investment securities (interest and other income) (1,504 ) 1,164 (2,668 ) 7 3,225 (3,218 ) Unrealized (gain) loss on investment securities (interest and other income) (13,466 ) — (13,466 ) (9,005 ) — (9,005 ) Non-operating asset (gains) losses (13,323 ) 2,368 (15,691 ) (8,588 ) 3,542 (12,130 ) Insurance/litigation settlement or reserve income (interest and other income) (1,055 ) (1,650 ) 595 — (12 ) 12 Insurance/litigation/environmental settlement or reserve expense (other expenses) 17,310 1,495 15,815 5,694 745 4,949 Advocacy contributions (other expenses) 2,142 1,512 630 1,665 50 1,615 Data transformation project (other expenses) 3,780 1,120 2,660 — 1,120 (1,120 ) Real estate tax transaction adjustment (real estate taxes) — (18,072 ) 18,072 — (18,072 ) 18,072 Other (589 ) 1,694 (2,283 ) (602 ) 436 (1,038 ) Other miscellaneous items 21,588 (13,901 ) 35,489 6,757 (15,733 ) 22,490 Adjustments from FFO to Normalized FFO $ 13,055 $ (2,089 ) $ 15,144 $ (923 ) $ (10,359 ) $ 9,436 Note: 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 Normalized FFO Guidance and Assumptions The guidance/projections provided below are based on current expectations and are forward-looking. All guidance is given on a Normalized FFO basis. Therefore, certain items excluded from Normalized FFO, such as debt extinguishment costs/prepayment penalties and the write-off of pursuit costs, are not included in the estimates provided on this page. 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. Q1 2024 Full Year 2024 2024 Normalized FFO Guidance (per share diluted) Expected Normalized FFO Per Share $0.88 to $0.92 $3.80 to $3.90 2024 Same Store Assumptions (includes Residential and Non-Residential) Physical Occupancy 95.9% Revenue change 2.0% to 3.0% Expense change 3.5% to 4.5% NOI change (1) 1.0% to 2.6% 2024 Transaction Assumptions Consolidated rental acquisitions $1.0B Consolidated rental dispositions $1.0B Transaction Accretion (Dilution) (25 basis points) 2024 Debt Assumptions Weighted average debt outstanding $7.27B to $7.47B Interest expense, net (on a Normalized FFO basis) $268.0M to $274.0M Capitalized interest $9.7M to $13.7M 2024 Capital Expenditures to Real Estate Assumptions for Same Store Properties (2) Capital Expenditures to Real Estate for Same Store Properties $295.0M Capital Expenditures to Real Estate per Same Store Apartment Unit $3,800 2024 Other Guidance Assumptions Property management expense $124.0M to $126.0M General and administrative expense $57.5M to $61.5M Debt offerings No amounts budgeted Weighted average Common Shares and Units - Diluted 391.1M (1) Approximately 20 basis point change in NOI percentage = $0.01 per share change in EPS/FFO per share/Normalized FFO per share. (2) Similar to 2023, the Company expects that approximately 40% of its Capital Expenditures to Real Estate for Same Store Properties will be NOI-Enhancing (primarily renovations, sustainability and property-level technology spend). During 2024, the Company expects to spend approximately $104.0 million for apartment unit Renovation Expenditures on approximately 3,250 same store apartment units at an average cost of approximately $32,000 per apartment unit renovated with the remainder of the NOI-Enhancing spend consisting of sustainability and property-level technology expenditures. Equity Residential Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms (Amounts in thousands except per share and per apartment unit data) (All per share data is diluted) This Earnings Release and Supplemental Financial Information includes certain non-GAAP financial measures and other terms that management believes are helpful in understanding our business. The definitions and calculations of these non-GAAP financial measures and other terms may differ from the definitions and methodologies used by other real estate investment trusts (“REIT”) and, accordingly, may not be comparable. These non-GAAP financial measures should not be considered as an alternative to net earnings or any other measurement of performance computed in accordance with accounting principles generally accepted in the United States (“GAAP”) or as an alternative to cash flows from specific operating, investing or financing activities. Furthermore, these non-GAAP financial measures are not intended to be a measure of cash flow or liquidity. Acquisition Capitalization Rate or Cap Rate – NOI that the Company anticipates receiving in the next 12 months (or the year two or three stabilized NOI for properties that are in lease-up at acquisition) less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $100-$450 per apartment unit depending on the age and condition of the asset) divided by the gross purchase price of the asset. The weighted average Acquisition Cap Rate for acquired properties is weighted based on the projected NOI streams and the relative purchase price for each respective property. Average Rental Rate – Total Residential rental revenues reflected on a straight-line basis in accordance with GAAP divided by the weighted average occupied apartment units for the reporting period presented. Bad Debt, Net – Change in rental income due to bad debt write-offs and reserves, net of amounts collected on previously written-off or reserved accounts. Blended Rate – The weighted average of New Lease Change and Renewal Rate Achieved. Capital Expenditures to Real Estate: Building Improvements – Includes roof replacement, paving, building mechanical equipment systems, exterior siding and painting, major landscaping, furniture, fixtures and equipment for amenities and common areas, vehicles and office and maintenance equipment. NOI-Enhancing – Primarily includes Renovation Expenditures as well as sustainability and property-level technology expenditures that are intended to increase revenues or decrease expenses. Renovation Expenditures – Apartment unit renovation costs (primarily kitchens and baths) designed to reposition these units for higher rental levels in their respective markets. Replacements – Includes appliances, mechanical equipment, fixtures and flooring (including hardwood and carpeting). Debt Balances: Commercial Paper Program – The Company may borrow up to a maximum of $1.0 billion under its Commercial Paper Program subject to market conditions. The notes bear interest at various floating rates. Revolving Credit Facility – The Company’s $2.5 billion unsecured revolving credit facility matures October 26, 2027. The interest rate on advances under the facility will generally be SOFR plus a spread (currently 0.725%), or based on bids received from the lending group, and an annual facility fee (currently 0.125%). Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating. In addition, the Company limits its utilization of the facility in order to maintain liquidity to support its $1.0 billion Commercial Paper Program along with certain other obligations. The following table presents the availability on the Company’s unsecured revolving credit facility: December 31, 2023 Unsecured revolving credit facility commitment $ 2,500,000 Commercial paper balance outstanding (410,000 ) Unsecured revolving credit facility balance outstanding — Other restricted amounts (3,415 ) Unsecured revolving credit facility availability $ 2,086,585 Debt Covenant Compliance – Our unsecured debt includes certain financial and operating covenants including, among other things, maintenance of certain financial ratios. These provisions are contained in the indentures applicable to each notes payable or the credit agreement for our line of credit. The Debt Covenant Compliance ratios that are provided show the Company's compliance with certain covenants governing our public unsecured debt. These covenants generally reflect our most restrictive financial covenants. The Company was in compliance with its unsecured debt covenants for all periods presented. Development Yield – NOI that the Company anticipates receiving in the next 12 months following stabilization less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $50-$150 per apartment unit depending on the type of asset) divided by the Total Budgeted Capital Cost of the asset. The weighted average Development Yield for development properties is weighted based on the projected NOI streams and the relative Total Budgeted Capital Cost for each respective property. Disposition Yield – NOI that the Company anticipates giving up in the next 12 months less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $150-$450 per apartment unit depending on the age and condition of the asset) divided by the gross sales price of the asset. The weighted average Disposition Yield for sold properties is weighted based on the projected NOI streams and the relative sales price for each respective property. Earnings Per Share ("EPS") – Net income per share calculated in accordance with GAAP. Expected EPS is calculated on a basis consistent with actual EPS. Due to the uncertain timing and extent of property dispositions and the resulting gains/losses on sales, actual EPS could differ materially from expected EPS. EBITDA for Real Estate and Normalized EBITDA for Real Estate: Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”) – The National Association of Real Estate Investment Trusts (“Nareit”) defines EBITDAre (September 2017 White Paper) as net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for gains and losses from sales of depreciated operating properties, impairment write-downs of depreciated operating properties, impairment write-downs of investments in unconsolidated entities caused by a decrease in value of depreciated operating properties within the joint venture and adjustments to reflect the Company’s share of EBITDAre of investments in unconsolidated entities. The Company believes that EBITDAre is useful to investors, creditors and rating agencies as a supplemental measure of the Company’s ability to incur and service debt because it is a recognized measure of performance by the real estate industry, and by excluding gains or losses related to sales or impairment of depreciated operating properties, EBITDAre can help compare the Company’s credit strength between periods or as compared to different companies. Normalized Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“Normalized EBITDAre”) – Represents net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for non-comparable items. Normalized EBITDAre, total debt to Normalized EBITDAre and net debt to Normalized EBITDAre are important metrics in evaluating the credit strength of the Company and its ability to service its debt obligations. The Company believes that Normalized EBITDAre, total debt to Normalized EBITDAre, and net debt to Normalized EBITDAre are useful to investors, creditors and rating agencies because they allow investors to compare the Company’s credit strength to prior reporting periods and to other companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual credit quality. Economic Gain (Loss) – Economic Gain (Loss) is calculated as the net gain (loss) on sales of real estate properties in accordance with GAAP, excluding accumulated depreciation. The Company generally considers Economic Gain (Loss) to be an appropriate supplemental measure to net gain (loss) on sales of real estate properties in accordance with GAAP because it is one indication of the gross value created by the Company's acquisition, development, renovation, management and ultimate sale of a property and because it helps investors to understand the relationship between the cash proceeds from a sale and the cash invested in the sold property. The following table presents a reconciliation of net gain (loss) on sales of real estate properties in accordance with GAAP to Economic Gain (Loss): Year Ended December 31, 2023 Quarter Ended December 31, 2023 Net Gain (Loss) on Sales of Real Estate Properties $ 282,539 $ 155,505 Accumulated Depreciation Gain (106,110 ) (50,353 ) Economic Gain (Loss) $ 176,429 $ 105,152 Forecasted Embedded Growth – The positive or negative contribution to growth implied by annualizing total lease income anticipated for the last month of the current year (without regard to vacancy) compared to anticipated actual full year lease income for the current year (without regard to vacancy) and excluding the impact of Leasing Concessions and other income. This metric is a helpful data point in that it captures the impact of leases in existence at the end of the current year and their impact on rental income for the following year. FFO and Normalized FFO: Funds From Operations (“FFO”) – Nareit defines FFO (December 2018 White Paper) as net income (computed in accordance with GAAP), excluding gains or losses from sales and impairment write-downs of depreciable real estate and land when connected to the main business of a REIT, impairment write-downs of investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity and depreciation and amortization related to real estate. Adjustments for partially owned consolidated and unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. Expected FFO per share is calculated on a basis consistent with actual FFO per share and is considered an appropriate supplemental measure of expected operating performance when compared to expected EPS. The Company believes that FFO and FFO available to Common Shares and Units are helpful to investors as supplemental measures of the operating performance of a real estate company, because they are recognized measures of performance by the real estate industry and by excluding gains or losses from sales and impairment write-downs of depreciable real estate and excluding depreciation related to real estate (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO and FFO available to Common Shares and Units can help compare the operating performance of a company’s real estate between periods or as compared to different companies. Normalized Funds From Operations ("Normalized FFO" or "NFFO") – Normalized FFO begins with FFO and excludes: the impact of any expenses relating to non-operating real estate asset impairment; pursuit cost write-offs; gains and losses from early debt extinguishment and preferred share redemptions; gains and losses from non-operating assets; and other miscellaneous items. Expected Normalized FFO per share is calculated on a basis consistent with actual Normalized FFO per share and is considered an appropriate supplemental measure of expected operating performance when compared to expected EPS. The Company believes that Normalized FFO and Normalized FFO available to Common Shares and Units are helpful to investors as supplemental measures of the operating performance of a real estate company because they allow investors to compare the Company's operating performance to its performance in prior reporting periods and to the operating performance of other real estate companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company's actual operating results. FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units do not represent net income, net income available to Common Shares or net cash flows from operating activities in accordance with GAAP. Therefore, FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units should not be exclusively considered as alternatives to net income, net income available to Common Shares or net cash flows from operating activities as determined by GAAP or as a measure of liquidity. The Company's calculation of FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units may differ from other real estate companies due to, among other items, variations in cost capitalization policies for capital expenditures and, accordingly, may not be comparable to such other real estate companies. FFO available to Common Shares and Units and Normalized FFO available to Common Shares and Units are calculated on a basis consistent with net income available to Common Shares and reflects adjustments to net income for preferred distributions and premiums on redemption of preferred shares in accordance with GAAP. The equity positions of various individuals and entities that contributed their properties to the Operating Partnership in exchange for OP Units are collectively referred to as the "Noncontrolling Interests – Operating Partnership". Subject to certain restrictions, the Noncontrolling Interests – Operating Partnership may exchange their OP Units for Common Shares on a one-for-one basis. The following table presents reconciliations of EPS to FFO per share and Normalized FFO per share for Consolidated Statements of Funds From Operations and Normalized Funds From Operations. Actual Actual Expected Expected Actual 2023 Actual 2022 Q4 2023 Q4 2022 Q1 2024 2024 Per Share Per Share Per Share Per Share Per Share Per Share EPS – Diluted $ 2.20 $ 2.05 $ 0.82 $ 0.42 $0.77 to $0.81 $2.91 to $3.01 Depreciation expense 2.27 2.26 0.58 0.55 0.58 2.25 Net (gain) loss on sales (0.72 ) (0.78 ) (0.40 ) — (0.48 ) (1.42 ) Impairment – operating real estate assets — — — — — — FFO per share – Diluted 3.75 3.53 1.00 0.97 0.87 to 0.91 3.74 to 3.84 Impairment – non-operating real estate assets — — — — — — Write-off of pursuit costs 0.01 0.01 — — — 0.01 Debt extinguishment and preferred share redemption (gains) losses — 0.01 — — — — Non-operating asset (gains) losses (0.03 ) 0.01 (0.02 ) 0.01 — 0.01 Other miscellaneous items 0.05 (0.04 ) 0.02 (0.04 ) 0.01 0.04 Normalized FFO per share – Diluted $ 3.78 $ 3.52 $ 1.00 $ 0.94 $0.88 to $0.92 $3.80 to $3.90 Lease-Up NOI – Represents NOI for development properties: (i) in various stages of lease-up; and (ii) where lease-up has been completed but the properties were not stabilized (defined as having achieved 90% occupancy for three consecutive months) for all of the current and comparable periods presented. Leasing Concessions – Reflects upfront discounts on both new move-in and renewal leases on a straight-line basis. Net Operating Income (“NOI”) – NOI is the Company’s primary financial measure for evaluating each of its apartment properties. NOI is defined as rental income less direct property operating expenses (including real estate taxes and insurance). The Company believes that NOI is helpful to investors as a supplemental measure of its operating performance because it is a direct measure of the actual operating results of the Company's apartment properties. NOI does not include an allocation of property management expenses either in the current or comparable periods. Rental income for all leases and operating expense for ground leases (for both same store and non-same store properties) are reflected on a straight-line basis in accordance with GAAP for the current and comparable periods. The following tables present reconciliations of operating income per the consolidated statements of operations to NOI, along with rental income, operating expenses and NOI per the consolidated statements of operations allocated between same store and non-same store/other results (see Same Store Results): Year Ended December 31, Quarter Ended December 31, 2023 2022 2023 2022 Operating income $ 1,160,585 $ 1,116,046 $ 392,501 $ 242,363 Adjustments: Property management 119,804 110,304 29,490 27,269 General and administrative 60,716 58,710 11,581 11,677 Depreciation 888,709 882,168 226,788 214,272 Net (gain) loss on sales of real estate properties (282,539 ) (304,325 ) (155,505 ) 21 Total NOI $ 1,947,275 $ 1,862,903 $ 504,855 $ 495,602 Rental income: Same store $ 2,754,711 $ 2,609,766 $ 711,756 $ 685,317 Non-same store/other 119,253 125,414 15,744 14,386 Total rental income 2,873,964 2,735,180 727,500 699,703 Operating expenses: Same store 873,448 837,602 216,409 213,613 Non-same store/other 53,241 34,675 6,236 (9,512 ) Total operating expenses 926,689 872,277 222,645 204,101 NOI: Same store 1,881,263 1,772,164 495,347 471,704 Non-same store/other 66,012 90,739 9,508 23,898 Total NOI $ 1,947,275 $ 1,862,903 $ 504,855 $ 495,602 New Lease Change – The net effective change in rent (inclusive of Leasing Concessions) for a lease with a new or transferring resident compared to the rent for the prior lease of the identical apartment unit, regardless of lease term. Non-Residential – Consists of revenues and expenses from retail and public parking garage operations. Non-Same Store Properties – For annual comparisons, primarily includes all properties acquired during 2022 and 2023, plus any properties in lease-up and not stabilized as of January 1, 2022. Percentage of Residents Renewing – Leases renewed expressed as a percentage of total renewal offers extended during the reporting period. Physical Occupancy – The weighted average occupied apartment units for the reporting period divided by the average of total apartment units available for rent for the reporting period. Pricing Trend – Weighted average of 12-month base rent including amenity amount less Leasing Concessions on 12-month signed leases for the reporting period. Renewal Rate Achieved – The net effective change in rent (inclusive of Leasing Concessions) for a new lease on an apartment unit where the lease has been renewed as compared to the rent for the prior lease of the identical apartment unit, regardless of lease term. Residential – Consists of multifamily apartment revenues and expenses. Same Store Operating Expenses: Insurance – Includes third-party insurance premiums, broker fees and other insurance-related procurement fees along with an allocation of estimated uninsured losses. On-site Payroll – Includes payroll and related expenses for on-site personnel including property managers, leasing consultants and maintenance staff. Other On-site Operating Expenses – Includes ground lease costs and administrative costs such as office supplies, telephone and data charges and association and business licensing fees. Repairs and Maintenance – Includes general maintenance costs, apartment unit turnover costs including interior painting, routine landscaping, security, exterminating, fire protection, snow removal, elevator, roof and parking lot repairs and other miscellaneous building repair and maintenance costs. Utilities – Represents gross expenses prior to any recoveries under the Resident Utility Billing System (“RUBS”). Recoveries are reflected in rental income. Same Store Properties – For annual comparisons, primarily includes all properties acquired or completed that are stabilized prior to January 1, 2022, less properties subsequently sold. Properties are included in Same Store when they are stabilized for all of the current and comparable periods presented. Same Store Residential Revenues – Revenues from our Same Store Properties presented on a GAAP basis which reflects the impact of Leasing Concessions on a straight-line basis. Same Store Residential Revenues with Leasing Concessions on a cash basis is presented in Same Store Results and is considered by the Company to be a supplemental measure to Same Store Residential Revenues in conformity with GAAP to help investors evaluate the impact of both current and historical Leasing Concessions on GAAP-based Same Store Residential Revenues and to more readily enable comparisons to revenue as reported by other companies. Same Store Residential Revenues with Leasing Concessions on a cash basis reflects the impact of Leasing Concessions used in the period and allows an investor to understand the historical trend in cash Leasing Concessions. % of Stabilized Budgeted NOI – Represents original budgeted 2024 NOI for stabilized properties and projected annual NOI at stabilization (defined as having achieved 90% occupancy for three consecutive months) for properties that are in lease-up. Total Budgeted Capital Cost – Estimated remaining cost for projects under development and/or developed plus all capitalized costs incurred to date, including land acquisition costs, construction costs, capitalized real estate taxes and insurance, capitalized interest and loan fees, permits, professional fees, allocated development overhead and other regulatory fees, plus any estimates of costs remaining to be funded for all projects, all in accordance with GAAP. Amounts for partially owned consolidated and unconsolidated properties are presented at 100% of the project. Total Market Capitalization – The aggregate of the market value of the Company’s outstanding common shares, including restricted shares, the market value of the Company’s operating partnership units outstanding, including restricted units (based on the market value of the Company’s common shares) and the outstanding principal balance of debt. The Company believes this is a useful measure of a real estate operating company’s long-term liquidity and balance sheet strength, because it shows an approximate relationship between a company’s total debt and the current total market value of its assets based on the current price at which the Company’s common shares trade. However, because this measure of leverage changes with fluctuations in the Company’s share price, which occur regularly, this measure may change even when the Company’s earnings, interest and debt levels remain stable. Traffic – Consists of an expression of interest in an apartment by completing an in-person tour, self-guided tour or virtual tour that may result in an application to lease. Transaction Accretion (Dilution) – Represents the spread between the Acquisition Cap Rate and the Disposition Yield. Turnover – Total Residential move-outs (including inter-property and intra-property transfers) divided by total Residential apartment units. Unencumbered NOI % – Represents NOI generated by consolidated real estate assets unencumbered by outstanding secured debt as a percentage of total NOI generated by all of the Company's consolidated real estate assets. Unlevered Internal Rate of Return (“IRR”) – The Unlevered IRR on sold properties is the compound annual rate of return calculated by the Company based on the timing and amount of: (i) the gross purchase price of the property plus any direct acquisition costs incurred by the Company; (ii) total revenues earned during the Company’s ownership period; (iii) total direct property operating expenses (including real estate taxes and insurance) incurred during the Company’s ownership period; (iv) capital expenditures incurred during the Company’s ownership period; and (v) the gross sales price of the property net of selling costs. The calculation of the Unlevered IRR does not include an adjustment for the Company’s property management expense, general and administrative expense or interest expense (including loan assumption costs and other loan-related costs). Therefore, the Unlevered IRR is not a substitute for net income as a measure of our performance. Management believes that the Unlevered IRR achieved during the period a property is owned by the Company is useful because it is one indication of the gross value created by the Company’s acquisition, development, renovation, management and ultimate sale of a property, before the impact of Company overhead. The Unlevered IRR achieved on the properties as cited in this release should not be viewed as an indication of the gross value created with respect to other properties owned by the Company, and the Company does not represent that it will achieve similar Unlevered IRRs upon the disposition of other properties. The weighted average Unlevered IRR for sold properties is weighted based on all cash flows over the investment period for each respective property, including net sales proceeds. Weighted Average Coupons – Contractual interest rate for each debt instrument weighted by principal balances as of December 31, 2023. In case of debt for which fair value hedges are in place, the rate payable under the corresponding derivatives is used in lieu of the contractual interest rate. Weighted Average Rates – Interest expense for each debt instrument for the year ended December 31, 2023 weighted by its average principal balance for the same period. Interest expense includes amortization of premiums, discounts and other comprehensive income on debt and related derivative instruments. In case of debt for which derivatives are in place, the income or expense recognized under the corresponding derivatives is included in the total interest expense for the period. View source version on businesswire.com: https://www.businesswire.com/news/home/20240130619582/en/Contacts Marty McKenna 312-928-1901 mmckenna@eqr.com
Equity Residential (NYSE: EQR) today reported results for the quarter and year ended December 31, 2023. Fourth Quarter 2023 Results All per share results are reported as available to common shares/units on a diluted basis. Quarter Ended December 31, 2023 2022 $ Change % Change Earnings Per Share (EPS) $ 0.82 $ 0.42 $ 0.40 95.2 % Funds from Operations (FFO) per share $ 1.00 $ 0.97 $ 0.03 3.1 % Normalized FFO (NFFO) per share $ 1.00 $ 0.94 $ 0.06 6.4 % Year Ended December 31, 2023 2022 $ Change % Change Earnings Per Share (EPS) $ 2.20 $ 2.05 $ 0.15 7.3 % Funds from Operations (FFO) per share $ 3.75 $ 3.53 $ 0.22 6.2 % Normalized FFO (NFFO) per share $ 3.78 $ 3.52 $ 0.26 7.4 % Recent Highlights Same store revenue increased 3.9% for the fourth quarter of 2023 compared to the fourth quarter of 2022, driven by strong demand. The Company has provided guidance for the full year 2024 with same store revenue growth expected to be between 2.0% and 3.0%. During the fourth quarter of 2023, the Company sold three properties located in our West Coast markets (San Francisco, Seattle and Los Angeles), consisting of 499 apartment units, for an aggregate sale price of approximately $184.5 million. During the fourth quarter of 2023, the Company repurchased and retired 864,386 of its common shares, at a weighted average purchase price of $56.79 per share, for an aggregate purchased amount of approximately $49.1 million. Following this repurchase activity, the Company’s Board of Trustees approved replenishing the Company’s share repurchase program authorization back to its original 13.0 million shares. “We are pleased with our fourth quarter results as we finished the year in line with our expectations. I want to thank my colleagues across Equity Residential for their hard work and dedication to our customers and shareholders,” said Mark J. Parrell, Equity Residential’s President and CEO. “We enter 2024 well-positioned to post solid results on the operations side despite expectations of a slowing economy with continuing high employment levels in our target affluent renter demographic and a manageable apartment supply backdrop in our existing predominantly coastal footprint versus oversupplied Sunbelt markets. We are optimistic that in 2024 we will see a variety of favorable opportunities to deploy capital and have a team and a balance sheet well-prepared to do so.” Full Year 2024 Guidance The Company has provided guidance for its full year 2024 same store operating performance, EPS, FFO per share, Normalized FFO per share and transactions as listed below: Same Store (includes Residential and Non-Residential): Physical Occupancy 95.9% Revenue change 2.0% to 3.0% Expense change 3.5% to 4.5% Net Operating Income (NOI) change 1.0% to 2.6% EPS $2.91 to $3.01 FFO per share $3.74 to $3.84 Normalized FFO per share $3.80 to $3.90 Transactions: Consolidated rental acquisitions $1.0B Consolidated rental dispositions $1.0B Transaction Accretion (Dilution) (25 basis points) The difference between the Company's full year 2023 actual EPS of $2.20 and the full year 2024 EPS guidance midpoint of $2.96 is due primarily to higher expected property sale gains and the items described below. The difference between the Company's full year 2023 actual FFO of $3.75 per share and the full year 2024 FFO guidance midpoint of $3.79 per share is due primarily to lower expected non-operating gains on sale offset by the items described below. The difference between the Company's full year 2023 actual Normalized FFO of $3.78 per share and the full year 2024 Normalized FFO guidance midpoint of $3.85 per share is due primarily to: Expected Positive/(Negative) Impact Full Year 2024 vs. Full Year 2023 Residential same store NOI $ 0.09 Lease-Up NOI 0.01 2024 and 2023 transaction activity impact on NOI, net (0.03 ) Corporate overhead (1) (0.01 ) Other items 0.01 Net $ 0.07 (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. Results Per Share The change in EPS for the quarter ended December 31, 2023 compared to the same period of 2022 is due primarily to higher property sale gains in the current period, the various adjustment items listed on page 27 of this release and the items described below. The change in EPS for the year end December 31, 2023 compared to the same period of 2022 is due primarily to lower property sale gains in the current period, 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 year ended December 31, 2023 compared to the same periods of 2022 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 Fourth Quarter 2023 vs. Fourth Quarter 2022 Full Year 2023 vs. Full Year 2022 Residential same store NOI $ 0.06 $ 0.28 Lease-Up NOI – 0.03 2023 and 2022 transaction activity impact on NOI, net – (0.02 ) Interest expense, net (0.01 ) 0.02 Corporate overhead – (0.03 ) Other items 0.01 (0.02 ) Net $ 0.06 $ 0.26 Same Store Results The following table shows the total same store results for the periods presented. Fourth Quarter 2023 vs. Fourth Quarter 2022 Fourth Quarter 2023 vs. Third Quarter 2023 Full Year 2023 vs. Full Year 2022 Apartment Units 77,676 78,163 76,297 Physical Occupancy 95.8% vs. 95.8% 95.8% vs. 96.0% 95.9% vs. 96.3% Revenues 3.9% 0.6% 5.6% Expenses 1.3% (3.6%) 4.3% NOI 5.0% 2.5% 6.2% 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 3.6% of total revenues for the year ended December 31, 2023. 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. Fourth Quarter 2023 vs. Fourth Quarter 2022 Fourth Quarter 2023 vs. Third Quarter 2023 Full Year 2023 vs. Full Year 2022 % Change % Change % Change Same Store Residential Revenues- comparable period Lease rates 3.5 % 0.3 % 6.2 % Leasing Concessions (0.4 %) (0.1 %) (0.2 %) Vacancy gain (loss) 0.0 % 0.1 % (0.5 %) Bad Debt, Net (1) 0.4 % (0.1 %) (0.4 %) Other (2) 0.5 % 0.1 % 0.6 % Same Store Residential Revenues- current period 4.0 % 0.3 % 5.7 % (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. The comparable full year 2023 period change in Bad Debt, Net was negatively impacted by the much higher governmental rental assistance received in 2022 versus 2023. 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 76,297 same store apartment units): January 2024 (1) Q4 2023 Q3 2023 Physical Occupancy 96.2% 95.8% 96.0% Percentage of Residents Renewing by quarter/month 61.0% 59.0% 54.0% New Lease Change (3.7%) (4.5%) 0.5% Renewal Rate Achieved 4.9% 5.1% 5.5% Blended Rate 1.0% 0.8% 3.1% (1) January 2024 results are preliminary as of January 25th and reflect the 2024 annual same store set including 77,472 apartment units. Investment Activity The Company did not acquire any operating properties during the fourth quarter of 2023. During the full year of 2023, the Company has acquired four operating properties, consisting of 1,183 apartment units, for an aggregate purchase price of approximately $366.3 million at a weighted average Acquisition Cap Rate of 5.5%. The average age of the properties acquired in 2023 was approximately 1 year. During the fourth quarter of 2023, the Company sold three properties located in our West Coast markets (San Francisco, Seattle and Los Angeles), consisting of 499 apartment units, for an aggregate sale price of approximately $184.5 million at a weighted average Disposition Yield of 5.8%, generating an Unlevered IRR of 14.4%. The average age of the properties sold in the fourth quarter of 2023 was approximately 40 years. During the full year of 2023, the Company sold 11 properties, consisting of 912 apartment units, for an aggregate sale price of approximately $379.9 million at a weighted average Disposition Yield of 5.5%, generating an Unlevered IRR of 11.4%. The average age of the properties sold in 2023 was approximately 30 years. Subsequent to the end of the fourth quarter of 2023, the Company sold a property in each of the Boston and Orange County markets, consisting of a total of 404 apartment units, for an aggregate sale price of approximately $189.0 million at a weighted average Disposition Yield of 5.6%. The average age of the properties sold subsequent to the end of the fourth quarter of 2023 was approximately 41 years. In 2023, the Company invested $282.8 million in Capital Expenditures to Real Estate for Same Store Properties. Approximately 40% of this spend was NOI-Enhancing. Of that amount, $79.3 million for 2,799 same store apartment units represented Renovation Expenditures with the remainder concentrated in sustainability and property-level technology spend. We expect a similar percentage of 2024 Capital Expenditures to Real Estate for Same Store Properties to be NOI-Enhancing. Capital Markets Activity During the fourth quarter of 2023, the Company repurchased and retired 864,386 of its common shares, at a weighted average purchase price of $56.79 per share, for an aggregate purchased amount of approximately $49.1 million. Following this repurchase activity, the Company’s Board of Trustees approved replenishing the Company’s share repurchase program authorization back to its original 13.0 million shares. First Quarter 2024 Guidance The Company has established guidance ranges for the first quarter of 2024 EPS, FFO per share and Normalized FFO per share as listed below: Q1 2024 Guidance EPS $0.77 to $0.81 FFO per share $0.87 to $0.91 Normalized FFO per share $0.88 to $0.92 The difference between the fourth quarter of 2023 actual EPS of $0.82 and the first quarter of 2024 EPS guidance midpoint of $0.79 is due primarily to higher expected property sale gains and the items described below. The difference between the fourth quarter of 2023 actual FFO of $1.00 per share and the first quarter of 2024 FFO guidance midpoint of $0.89 per share is due primarily to the items described below. The difference between the fourth quarter of 2023 actual Normalized FFO of $1.00 per share and the first quarter of 2024 Normalized FFO guidance midpoint of $0.90 per share is due primarily to: Expected Positive/(Negative) Impact First Quarter 2024 vs. Fourth Quarter 2023 Residential same store NOI (1) $ (0.05 ) 2024 and 2023 transaction activity impact on NOI, net (0.01 ) Corporate overhead (0.03 ) Other items (0.01 ) Net $ (0.10 ) Residential same store NOI impact is primarily driven by higher expected real estate taxes and utilities in the first quarter of 2024 versus the fourth quarter of 2023. This pattern of higher operating expenses is typical between the fourth quarter of the current year and the first quarter of the following year. 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 302 properties consisting of 80,191 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, Wednesday, January 31, 2024 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) Year Ended December 31, Quarter Ended December 31, 2023 2022 2023 2022 REVENUES Rental income $ 2,873,964 $ 2,735,180 $ 727,500 $ 699,703 EXPENSES Property and maintenance 514,575 483,865 123,138 118,588 Real estate taxes and insurance 412,114 388,412 99,507 85,513 Property management 119,804 110,304 29,490 27,269 General and administrative 60,716 58,710 11,581 11,677 Depreciation 888,709 882,168 226,788 214,272 Total expenses 1,995,918 1,923,459 490,504 457,319 Net gain (loss) on sales of real estate properties 282,539 304,325 155,505 (21 ) Operating income 1,160,585 1,116,046 392,501 242,363 Interest and other income 22,345 2,193 11,049 (2,651 ) Other expenses (29,419 ) (13,664 ) (8,902 ) (4,473 ) Interest: Expense incurred, net (269,556 ) (282,920 ) (68,674 ) (65,827 ) Amortization of deferred financing costs (8,941 ) (8,729 ) (1,918 ) (2,308 ) Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of land parcels 875,014 812,926 324,056 167,104 Income and other tax (expense) benefit (1,148 ) (900 ) (256 ) (175 ) Income (loss) from investments in unconsolidated entities (5,378 ) (5,031 ) (1,531 ) (1,575 ) Net income 868,488 806,995 322,269 165,354 Net (income) loss attributable to Noncontrolling Interests: Operating Partnership (26,710 ) (26,310 ) (9,536 ) (5,286 ) Partially Owned Properties (6,340 ) (3,774 ) (1,041 ) (1,048 ) Net income attributable to controlling interests 835,438 776,911 311,692 159,020 Preferred distributions (3,090 ) (3,090 ) (772 ) (772 ) Net income available to Common Shares $ 832,348 $ 773,821 $ 310,920 $ 158,248 Earnings per share – basic: Net income available to Common Shares $ 2.20 $ 2.06 $ 0.82 $ 0.42 Weighted average Common Shares outstanding 378,773 376,209 379,247 377,689 Earnings per share – diluted: Net income available to Common Shares $ 2.20 $ 2.05 $ 0.82 $ 0.42 Weighted average Common Shares outstanding 390,897 389,450 390,787 390,245 Distributions declared per Common Share outstanding $ 2.65 $ 2.50 $ 0.6625 $ 0.625 Equity Residential Consolidated Statements of Funds From Operations and Normalized Funds From Operations (Amounts in thousands except per share and Unit data) (Unaudited) Year Ended December 31, Quarter Ended December 31, 2023 2022 2023 2022 Net income $ 868,488 $ 806,995 $ 322,269 $ 165,354 Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties (6,340 ) (3,774 ) (1,041 ) (1,048 ) Preferred distributions (3,090 ) (3,090 ) (772 ) (772 ) Net income available to Common Shares and Units 859,058 800,131 320,456 163,534 Adjustments: Depreciation 888,709 882,168 226,788 214,272 Depreciation – Non-real estate additions (4,268 ) (4,306 ) (977 ) (1,117 ) Depreciation – Partially Owned Properties (2,130 ) (2,640 ) (531 ) (543 ) Depreciation – Unconsolidated Properties 2,860 2,898 939 1,001 Net (gain) loss on sales of unconsolidated entities - operating assets — (9 ) — — Net (gain) loss on sales of real estate properties (282,539 ) (304,325 ) (155,505 ) 21 Noncontrolling Interests share of gain (loss) on sales of real estate properties 2,336 — — — FFO available to Common Shares and Units 1,464,026 1,373,917 391,170 377,168 Adjustments (see note for additional detail): Write-off of pursuit costs 3,647 4,780 908 1,484 Debt extinguishment and preferred share redemption (gains) losses 1,143 4,664 — 348 Non-operating asset (gains) losses (13,323 ) 2,368 (8,588 ) 3,542 Other miscellaneous items 21,588 (13,901 ) 6,757 (15,733 ) Normalized FFO available to Common Shares and Units $ 1,477,081 $ 1,371,828 $ 390,247 $ 366,809 FFO $ 1,467,116 $ 1,377,007 $ 391,942 $ 377,940 Preferred distributions (3,090 ) (3,090 ) (772 ) (772 ) FFO available to Common Shares and Units $ 1,464,026 $ 1,373,917 $ 391,170 $ 377,168 FFO per share and Unit – basic $ 3.75 $ 3.54 $ 1.00 $ 0.97 FFO per share and Unit – diluted $ 3.75 $ 3.53 $ 1.00 $ 0.97 Normalized FFO $ 1,480,171 $ 1,374,918 $ 391,019 $ 367,581 Preferred distributions (3,090 ) (3,090 ) (772 ) (772 ) Normalized FFO available to Common Shares and Units $ 1,477,081 $ 1,371,828 $ 390,247 $ 366,809 Normalized FFO per share and Unit – basic $ 3.79 $ 3.54 $ 1.00 $ 0.94 Normalized FFO per share and Unit – diluted $ 3.78 $ 3.52 $ 1.00 $ 0.94 Weighted average Common Shares and Units outstanding – basic 389,954 388,045 389,844 389,357 Weighted average Common Shares and Units outstanding – diluted 390,897 389,450 390,787 390,245 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) December 31, December 31, 2023 2022 ASSETS Land $ 5,581,876 $ 5,580,878 Depreciable property 22,938,426 22,334,369 Projects under development 78,036 112,940 Land held for development 114,300 60,567 Investment in real estate 28,712,638 28,088,754 Accumulated depreciation (9,810,337 ) (9,027,850 ) Investment in real estate, net 18,902,301 19,060,904 Investments in unconsolidated entities1 282,049 279,024 Cash and cash equivalents 50,743 53,869 Restricted deposits 89,252 83,303 Right-of-use assets 457,266 462,956 Other assets 252,953 278,206 Total assets $ 20,034,564 $ 20,218,262 LIABILITIES AND EQUITY Liabilities: Mortgage notes payable, net $ 1,632,902 $ 1,953,438 Notes, net 5,348,417 5,342,329 Line of credit and commercial paper 409,131 129,955 Accounts payable and accrued expenses 104,430 96,028 Accrued interest payable 65,716 66,310 Lease liabilities 311,640 308,748 Other liabilities 255,543 306,941 Security deposits 69,178 68,940 Distributions payable 259,231 244,621 Total liabilities 8,456,188 8,517,310 Commitments and contingencies Redeemable Noncontrolling Interests – Operating Partnership 289,248 318,273 Equity: Shareholders' equity: Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized; 745,600 shares issued and outstanding as of December 31, 2023 and December 31, 2022 37,280 37,280 Common Shares of beneficial interest, $0.01 par value; 1,000,000,000 shares authorized; 379,291,417 shares issued and outstanding as of December 31, 2023 and 378,429,708 shares issued and outstanding as of December 31, 2022 3,793 3,784 Paid in capital 9,601,866 9,476,085 Retained earnings 1,437,185 1,658,837 Accumulated other comprehensive income (loss) 5,704 (2,547 ) Total shareholders’ equity 11,085,828 11,173,439 Noncontrolling Interests: Operating Partnership 202,306 209,961 Partially Owned Properties 994 (721 ) Total Noncontrolling Interests 203,300 209,240 Total equity 11,289,128 11,382,679 Total liabilities and equity $ 20,034,564 $ 20,218,262 1 Includes $220.2 million and $218.0 million in unconsolidated development projects as of December 31, 2023 and December 31, 2022, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects. Equity Residential Portfolio Summary As of December 31, 2023 % of Stabilized Average Apartment Budgeted Rental Markets/Metro Areas Properties Units NOI Rate Established Markets: Los Angeles 58 14,732 17.1 % $ 2,929 Orange County 13 4,028 5.4 % 2,873 San Diego 12 2,878 4.0 % 3,108 Subtotal – Southern California 83 21,638 26.5 % 2,942 Washington, D.C. 48 15,028 16.3 % 3,303 San Francisco 43 11,667 15.4 % 2,657 New York 34 8,536 14.1 % 4,566 Boston 27 7,170 11.8 % 3,574 Seattle 44 9,267 10.4 % 2,561 Subtotal – Established Markets 279 73,306 94.5 % 3,145 Expansion Markets: Denver 9 2,792 2.8 % 2,411 Atlanta 7 2,111 1.6 % 2,169 Dallas/Ft. Worth 4 1,241 0.7 % 1,935 Austin 3 741 0.4 % 1,819 Subtotal – Expansion Markets 23 6,885 5.5 % 2,188 Total 302 80,191 100.0 % $ 3,063 Properties Apartment Units Wholly Owned Properties 288 77,131 Partially Owned Properties – Consolidated 14 3,060 302 80,191 Note: Projects under development are not included in the Portfolio Summary until construction has been completed. Equity Residential Portfolio Rollforward Q4 2023 ($ in thousands) Apartment Disposition Properties Units Sales Price Yield 9/30/2023 305 80,683 Dispositions: Consolidated Rental Properties (3 ) (499 ) $ (184,493 ) (5.8 %) Configuration Changes — 7 12/31/2023 302 80,191 Portfolio Rollforward 2023 ($ in thousands) Apartment Purchase Acquisition Properties Units Price Cap Rate 12/31/2022 308 79,597 Acquisitions: Consolidated Rental Properties 2 577 $ 189,734 5.1 % Consolidated Rental Properties – Not Stabilized (1) 2 606 $ 176,600 5.9 % Disposition Sales Price Yield Dispositions: Consolidated Rental Properties (11 ) (912 ) $ (379,893 ) (5.5 %) Completed Developments – Consolidated 1 312 Configuration Changes — 11 12/31/2023 302 80,191 (1) The Company acquired two properties in the Atlanta market during the year ended December 31, 2023 that are in lease-up and are expected to stabilize in their second year of ownership at the weighted average Acquisition Cap Rate listed above. Equity Residential Fourth Quarter 2023 vs. Fourth Quarter 2022 Same Store Results/Statistics Including 77,676 Same Store Apartment Units ($ in thousands except for Average Rental Rate) Fourth Quarter 2023 Fourth Quarter 2022 Residential % Change Non- Residential % Change Total % Change Residential Non- Residential Total Revenues $ 685,836 (1) 4.0% $ 25,920 (0.6%) $ 711,756 3.9% Revenues $ 659,233 $ 26,084 $ 685,317 Expenses $ 209,164 1.1% $ 7,245 7.7% $ 216,409 1.3% Expenses $ 206,885 $ 6,728 $ 213,613 NOI $ 476,672 5.4% $ 18,675 (3.5%) $ 495,347 5.0% NOI $ 452,348 $ 19,356 $ 471,704 Average Rental Rate $ 3,073 4.0% Average Rental Rate $ 2,954 Physical Occupancy 95.8 % 0.0% Physical Occupancy 95.8 % Turnover 9.4 % (0.1%) Turnover 9.5 % Fourth Quarter 2023 vs. Third Quarter 2023 Same Store Results/Statistics Including 78,163 Same Store Apartment Units ($ in thousands except for Average Rental Rate) Fourth Quarter 2023 Third Quarter 2023 Residential % Change Non- Residential % Change Total % Change Residential Non- Residential Total Revenues $ 689,458 (1) 0.3% $ 25,920 8.1% $ 715,378 0.6% Revenues $ 687,259 $ 23,971 (2) $ 711,230 Expenses $ 210,167 (3.9%) $ 7,268 5.2% $ 217,435 (3.6%) Expenses $ 218,723 $ 6,906 $ 225,629 NOI $ 479,291 2.3% $ 18,652 9.3% $ 497,943 2.5% NOI $ 468,536 $ 17,065 $ 485,601 Average Rental Rate $ 3,071 0.5% Average Rental Rate $ 3,056 Physical Occupancy 95.8 % (0.2%) Physical Occupancy 96.0 % Turnover 9.4 % (4.4%) Turnover 13.8 % 2023 vs. 2022 Same Store Results/Statistics Including 76,297 Same Store Apartment Units ($ in thousands except for Average Rental Rate) 2023 2022 Residential % Change Non- Residential % Change Total % Change Residential Non- Residential Total Revenues $ 2,657,868 (1) 5.7% $ 96,843 (2) 1.9% $ 2,754,711 5.6% Revenues $ 2,514,711 $ 95,055 $ 2,609,766 Expenses $ 846,546 4.1% $ 26,902 8.9% $ 873,448 4.3% Expenses $ 812,894 $ 24,708 $ 837,602 NOI $ 1,811,322 6.4% $ 69,941 (0.6%) $ 1,881,263 6.2% NOI $ 1,701,817 $ 70,347 $ 1,772,164 Average Rental Rate $ 3,029 6.2% Average Rental Rate $ 2,853 Physical Occupancy 95.9 % (0.4%) Physical Occupancy 96.3 % Turnover 43.7 % 0.1% Turnover 43.6 % (1) See page 12 for Same Store Residential Revenues with Leasing Concessions reflected on a cash basis. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail. (2) Includes the negative impact from the non-cash write-off of approximately $1.5 million in straight-line receivables during the third quarter of 2023 due to the bankruptcy of Rite Aid. Equity Residential Same Store Residential Revenues – GAAP to Cash Basis (1) ($ in thousands) Fourth Quarter 2023 vs. Fourth Quarter 2022 Fourth Quarter 2023 vs. Third Quarter 2023 2023 vs. 2022 77,676 Same Store Apartment Units 78,163 Same Store Apartment Units 76,297 Same Store Apartment Units Q4 2023 Q4 2022 Q4 2023 Q3 2023 2023 2022 Same Store Residential Revenues (GAAP Basis) $ 685,836 $ 659,233 $ 689,458 $ 687,259 $ 2,657,868 $ 2,514,711 Leasing Concessions amortized 4,531 2,153 4,822 4,100 12,803 8,711 Leasing Concessions granted (2) (5,074 ) (2,915 ) (5,399 ) (5,427 ) (17,750 ) (6,285 ) Same Store Residential Revenues with Leasing Concessions on a cash basis $ 685,293 $ 658,471 $ 688,881 $ 685,932 $ 2,652,921 $ 2,517,137 % change - GAAP revenue 4.0 % 0.3 % 5.7 % % change - cash revenue 4.1 % 0.4 % 5.4 % (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 and Seattle. Same Store Net Operating Income By Quarter Including 76,297 Same Store Apartment Units ($ in thousands) Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Same store revenues $ 696,250 $ 693,230 $ 688,481 $ 676,750 $ 671,116 Same store expenses 212,250 219,850 215,983 225,365 209,407 Same store NOI (includes Residential and Non-Residential) $ 484,000 $ 473,380 $ 472,498 $ 451,385 $ 461,709 Equity Residential Same Store Resident/Tenant Accounts Receivable Balances Including 76,297 Same Store Apartment Units ($ in thousands) Residential Non-Residential Balance Sheet (Other assets): December 31, 2023 September 30, 2023 December 31, 2023 September 30, 2023 Resident/tenant accounts receivable balances $ 20,910 $ 24,674 $ 2,822 $ 2,714 Allowance for doubtful accounts (15,419 ) (19,462 ) (1,849 ) (1,703 ) Net receivable balances $ 5,491 $ 5,212 $ 973 $ 1,011 Straight-line receivable balances $ 7,944 (1) $ 7,423 $ 11,810 $ 11,800 (2) (1) Total same store Residential Leasing Concessions granted in the fourth quarter of 2023 were approximately $5.0 million. The straight-line receivable balance of $7.9 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in 2024. (2) During the third quarter of 2023, the Company recorded a non-cash write-off of approximately $1.5 million in straight-line receivables due to the bankruptcy of Rite Aid. Same Store Residential Bad Debt Including 76,297 Same Store Apartment Units ($ in thousands) Income Statement (Rental income): Q4 2023 Q3 2023 Q4 2022 2023 2022 Bad debts before governmental rental assistance $ 9,341 $ 8,940 $ 13,574 $ 39,591 $ 58,785 Governmental rental assistance received (368 ) (406 ) (2,275 ) (2,587 ) (32,699 ) Bad Debt, Net $ 8,973 $ 8,534 $ 11,299 $ 37,004 $ 26,086 Bad Debt, Net as a % of Same Store Residential Revenues 1.3 % 1.3 % 1.7 % 1.4 % 1.0 % Equity Residential Fourth Quarter 2023 vs. Fourth Quarter 2022 Same Store Residential Results/Statistics by Market Increase (Decrease) from Prior Year's Quarter Markets/Metro Areas Apartment Units Q4 2023 % of Actual NOI Q4 2023 Average Rental Rate Q4 2023 Weighted Average Physical Occupancy % Q4 2023 Turnover Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Los Angeles 14,135 17.3 % $ 2,909 95.1 % 10.9 % 5.2 % 6.9 % 4.5 % 6.0 % (0.7 %) 0.8 % Orange County 4,028 5.5 % 2,873 96.3 % 8.7 % 6.5 % 4.5 % 7.0 % 7.0 % (0.4 %) 0.0 % San Diego 2,878 4.2 % 3,108 95.3 % 11.3 % 6.6 % 2.8 % 7.8 % 7.4 % (0.7 %) 2.5 % Subtotal – Southern California 21,041 27.0 % 2,929 95.3 % 10.6 % 5.6 % 6.1 % 5.5 % 6.4 % (0.7 %) 0.9 % Washington, D.C. 14,716 16.6 % 2,654 97.0 % 8.2 % 5.3 % (0.2 %) 7.9 % 4.9 % 0.5 % (1.1 %) San Francisco 11,245 15.8 % 3,307 95.4 % 10.6 % 2.1 % 1.2 % 2.4 % 2.3 % (0.2 %) 1.1 % New York 8,536 14.3 % 4,566 96.6 % 6.9 % 4.2 % 0.2 % 7.1 % 4.3 % (0.1 %) (0.7 %) Boston 7,170 11.1 % 3,574 95.8 % 8.6 % 5.8 % 3.8 % 6.6 % 6.0 % (0.1 %) 0.2 % Seattle 9,266 10.2 % 2,561 95.3 % 8.2 % (0.4 %) 0.5 % (0.8 %) (0.8 %) 0.4 % (1.7 %) Denver 2,505 2.5 % 2,417 96.0 % 11.5 % 1.8 % 4.8 % 0.6 % 2.2 % (0.1 %) (0.5 %) Other Expansion Markets 3,197 2.5 % 1,996 95.0 % 13.0 % 3.6 % (23.3 %) 27.6 % 1.0 % 2.2 % 0.0 % Total 77,676 100.0 % $ 3,073 95.8 % 9.4 % 4.0 % 1.1 % 5.4 % 4.0 % 0.0 % (0.1 %) Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.4% of total revenues for the year ended December 31, 2023. Equity Residential Fourth Quarter 2023 vs. Third Quarter 2023 Same Store Residential Results/Statistics by Market Increase (Decrease) from Prior Quarter Markets/Metro Areas Apartment Units Q4 2023 % of Actual NOI Q4 2023 Average Rental Rate Q4 2023 Weighted Average Physical Occupancy % Q4 2023 Turnover Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Los Angeles 14,135 17.1 % $ 2,909 95.1 % 10.9 % (0.3 %) (2.6 %) 0.8 % 0.4 % (0.6 %) (1.4 %) Orange County 4,028 5.5 % 2,873 96.3 % 8.7 % 1.2 % (4.2 %) 2.7 % 1.7 % (0.4 %) (2.2 %) San Diego 2,878 4.2 % 3,108 95.3 % 11.3 % 1.4 % (3.3 %) 2.9 % 1.5 % 0.0 % (1.2 %) Subtotal – Southern California 21,041 26.8 % 2,929 95.3 % 10.6 % 0.3 % (2.9 %) 1.5 % 0.8 % (0.6 %) (1.4 %) Washington, D.C. 14,716 16.5 % 2,654 97.0 % 8.2 % 0.6 % (4.4 %) 2.9 % 0.4 % 0.2 % (6.2 %) San Francisco 11,445 15.9 % 3,302 95.3 % 10.9 % (0.4 %) (2.7 %) 0.7 % (0.2 %) (0.2 %) (2.2 %) New York 8,536 14.2 % 4,566 96.6 % 6.9 % 0.8 % (3.7 %) 4.0 % 0.8 % 0.1 % (5.8 %) Boston 7,170 11.0 % 3,574 95.8 % 8.6 % 1.1 % 1.3 % 1.1 % 1.4 % (0.3 %) (7.4 %) Seattle 9,266 10.2 % 2,561 95.3 % 8.2 % (0.4 %) (7.4 %) 2.5 % (0.6 %) 0.1 % (6.1 %) Denver 2,792 2.9 % 2,411 96.0 % 11.8 % (0.3 %) (4.0 %) 1.2 % 0.4 % (0.5 %) (6.4 %) Other Expansion Markets 3,197 2.5 % 1,996 95.0 % 13.0 % 0.5 % (18.8 %) 15.2 % 0.1 % 0.4 % (5.0 %) Total 78,163 100.0 % $ 3,071 95.8 % 9.4 % 0.3 % (3.9 %) 2.3 % 0.5 % (0.2 %) (4.4 %) Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.4% of total revenues for the year ended December 31, 2023. Equity Residential 2023 vs. 2022 Same Store Residential Results/Statistics by Market Increase (Decrease) from Prior Year Markets/Metro Areas Apartment Units 2023 % of Actual NOI 2023 Average Rental Rate 2023 Weighted Average Physical Occupancy % 2023 Turnover Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Los Angeles 14,135 17.6 % $ 2,861 95.3 % 44.5 % 3.7 % (1) 8.5 % 1.7 % 5.1 % (1.3 %) 5.8 % Orange County 4,028 5.6 % 2,801 96.3 % 37.4 % 6.3 % 8.3 % 5.7 % 7.1 % (0.7 %) 2.9 % San Diego 2,706 4.0 % 2,993 95.4 % 42.3 % 6.9 % 5.6 % 7.2 % 8.2 % (1.3 %) 4.2 % Subtotal – Southern California 20,869 27.2 % 2,867 95.5 % 42.9 % 4.6 % 8.1 % 3.3 % 5.9 % (1.2 %) 5.1 % San Francisco 11,245 16.4 % 3,290 95.6 % 44.1 % 3.6 % 4.2 % 3.3 % 4.2 % (0.6 %) 2.4 % Washington, D.C. 14,400 16.3 % 2,597 96.8 % 40.5 % 6.0 % 1.4 % 8.3 % 5.9 % 0.0 % (2.6 %) New York 8,536 14.4 % 4,504 96.8 % 37.2 % 10.5 % 2.8 % 16.7 % 10.7 % (0.1 %) (5.2 %) Seattle 9,266 10.8 % 2,579 95.2 % 48.0 % 3.0 % 3.3 % 2.9 % 2.9 % 0.1 % (3.6 %) Boston 6,700 10.3 % 3,422 96.0 % 43.9 % 7.1 % 3.5 % 8.7 % 7.4 % (0.1 %) (1.5 %) Denver 2,505 2.7 % 2,404 96.3 % 58.1 % 4.6 % 8.2 % 3.2 % 4.6 % 0.0 % (2.2 %) Other Expansion Markets 2,776 1.9 % 1,987 94.7 % 57.1 % 4.7 % 1.4 % 7.4 % 5.1 % (0.6 %) 1.8 % Total 76,297 100.0 % $ 3,029 95.9 % 43.7 % 5.7 % 4.1 % 6.4 % 6.2 % (0.4 %) 0.1 % (1) Excluding Bad Debt, Net, which includes the positive impact of governmental rental assistance in the year ended December 31, 2022, same store revenue growth would have been 5.3%. Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.4% of total revenues for the year ended December 31, 2023. Equity Residential Same Store Residential Net Effective Lease Pricing Statistics For 76,297 Same Store Apartment Units New Lease Change (1) Renewal Rate Achieved (1) Blended Rate (1) Markets/Metro Areas Q4 2023 Q3 2023 Q4 2023 Q3 2023 Q4 2023 Q3 2023 Southern California (3.0 %) 2.0 % 5.2 % 6.5 % 1.3 % 4.2 % San Francisco (9.4 %) (3.9 %) 4.1 % 4.4 % (3.1 %) 0.0 % Washington, D.C. 0.8 % 4.3 % 6.1 % 6.7 % 3.9 % 5.5 % New York (2.2 %) 1.5 % 4.5 % 5.3 % 2.2 % 3.7 % Seattle (8.4 %) (4.4 %) 5.7 % 2.5 % (1.4 %) (0.9 %) Boston (1.2 %) 3.7 % 5.3 % 6.1 % 2.7 % 5.0 % Denver (5.0 %) 0.1 % 4.7 % 5.3 % (0.3 %) 2.4 % Other Expansion Markets (12.5 %) (8.5 %) 4.4 % 3.4 % (5.5 %) (3.8 %) Total (4.5 %) 0.5 % 5.1 % 5.5 % 0.8 % 3.1 % (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions. See page 4 for January 2024 preliminary data. Equity Residential Fourth Quarter 2023 vs. Fourth Quarter 2022 Total Same Store Operating Expenses Including 77,676 Same Store Apartment Units ($ in thousands) Q4 2023 Q4 2022 $ Change (1) % Change % of Q4 2023 Operating Expenses Real estate taxes $ 89,064 $ 89,248 $ (184 ) (0.2 %) 41.2 % On-site payroll 42,352 41,696 656 1.6 % 19.6 % Utilities 34,709 34,672 37 0.1 % 16.0 % Repairs and maintenance 27,336 27,008 328 1.2 % 12.6 % Insurance 8,371 7,377 994 13.5 % 3.9 % Leasing and advertising 2,674 2,673 1 0.0 % 1.2 % Other on-site operating expenses 11,903 10,939 964 8.8 % 5.5 % Total Same Store Operating Expenses (2) (includes Residential and Non-Residential) $ 216,409 $ 213,613 $ 2,796 1.3 % 100.0 % 2023 vs. 2022 Total Same Store Operating Expenses Including 76,297 Same Store Apartment Units ($ in thousands) 2023 2022 $ Change (1) % Change % of 2023 Operating Expenses Real estate taxes $ 356,679 $ 350,928 $ 5,751 1.6 % 40.8 % On-site payroll 169,280 161,297 7,983 4.9 % 19.4 % Utilities 136,982 133,579 3,403 2.5 % 15.7 % Repairs and maintenance 117,559 107,702 9,857 9.2 % 13.4 % Insurance 33,063 28,999 4,064 14.0 % 3.8 % Leasing and advertising 10,194 10,400 (206 ) (2.0 %) 1.2 % Other on-site operating expenses 49,691 44,697 4,994 11.2 % 5.7 % Total Same Store Operating Expenses (2) (includes Residential and Non-Residential) $ 873,448 $ 837,602 $ 35,846 4.3 % 100.0 % (1) The year-over-year changes were primarily driven by the following factors: Real estate taxes – Increase due to modest escalation in rates and assessed values. On-site payroll – Increase due primarily to fewer staffing vacancies compared to the same periods of 2022 and elevated employee benefit costs, partially offset by the impact of innovation initiatives. Utilities – Increase primarily driven by higher water, sewer and trash expense. Repairs and maintenance – Increase was impacted by increased outsourcing due to higher internal staffing utilization to address issues from California rain storms that occurred earlier in 2023. Insurance – Increase due to higher premiums on property insurance renewal due to challenging conditions in the insurance market. 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 December 31, 2023 ($ in thousands) Debt Balances (1) % of Total Weighted Average Rates (1) Weighted Average Maturities (years) Secured $ 1,632,902 22.1 % 3.68 % 7.9 Unsecured 5,757,548 77.9 % 3.61 % 8.2 Total $ 7,390,450 100.0 % 3.63 % 8.1 Fixed Rate Debt: Secured – Conventional $ 1,398,598 18.9 % 3.60 % 7.4 Unsecured – Public 5,348,417 72.4 % 3.51 % 8.8 Fixed Rate Debt 6,747,015 91.3 % 3.53 % 8.5 Floating Rate Debt: Secured – Conventional — — 7.18 % — Secured – Tax Exempt 234,304 3.2 % 3.53 % 10.6 Unsecured – Revolving Credit Facility — — — 3.8 Unsecured – Commercial Paper Program (2) 409,131 5.5 % 5.47 % — Floating Rate Debt 643,435 8.7 % 4.79 % 4.0 Total $ 7,390,450 100.0 % 3.63 % 8.1 (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. (2) At December 31, 2023, the weighted average maturity of commercial paper outstanding was 14 days. The weighted average amount outstanding for the year ended December 31, 2023 was approximately $276.0 million. Note: The Company capitalized interest of approximately $12.3 million and $7.1 million during the years ended December 31, 2023 and 2022, respectively. The Company capitalized interest of approximately $2.7 million and $2.9 million during the quarters ended December 31, 2023 and 2022, respectively. Equity Residential Debt Maturity Schedule as of December 31, 2023 ($ 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 $ — $ 416,200 (2) $ 416,200 5.6 % N/A 5.63 % 2025 450,000 8,100 458,100 6.1 % 3.38 % 3.38 % 2026 592,025 9,000 601,025 8.0 % 3.58 % 3.59 % 2027 400,000 9,800 409,800 5.5 % 3.25 % 3.26 % 2028 900,000 10,700 910,700 12.2 % 3.79 % 3.79 % 2029 888,120 11,500 899,620 12.1 % 3.30 % 3.31 % 2030 1,148,462 12,700 1,161,162 15.6 % 2.53 % 2.55 % 2031 528,500 39,800 568,300 7.6 % 1.94 % 2.09 % 2032 — 28,000 28,000 0.4 % N/A 3.82 % 2033 550,000 2,300 552,300 7.4 % 5.22 % 5.21 % 2034+ 1,350,850 108,600 1,459,450 19.5 % 4.39 % 4.25 % Subtotal 6,807,957 656,700 7,464,657 100.0 % 3.53 % 3.64 % Deferred Financing Costs and Unamortized (Discount) (60,942 ) (13,265 ) (74,207 ) N/A N/A N/A Total $ 6,747,015 $ 643,435 $ 7,390,450 100.0 % 3.53 % 3.64 % (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. (2) Includes $410.0 million in principal outstanding on the Company's Commercial Paper Program. Equity Residential Selected Unsecured Public Debt Covenants December 31, September 30, 2023 2023 Debt to Adjusted Total Assets (not to exceed 60%) 26.5% 26.9% Secured Debt to Adjusted Total Assets (not to exceed 40%) 6.7% 6.7% Consolidated Income Available for Debt Service to Maximum Annual Service Charges (must be at least 1.5 to 1) 6.19 6.08 Total Unencumbered Assets to Unsecured Debt (must be at least 125%) 510.7% 502.3% Note: These selected covenants represent the most restrictive financial covenants relating to ERP Operating Limited Partnership's ("ERPOP") outstanding public debt securities. Equity Residential is the general partner of ERPOP. Selected Credit Ratios December 31, September 30, 2023 2023 Total debt to Normalized EBITDAre 4.17x 4.28x Net debt to Normalized EBITDAre 4.12x 4.24x Unencumbered NOI as a % of total NOI 89.8% 89.8% Note: See Normalized EBITDAre Reconciliations for detail. Equity Residential Capital Structure as of December 31, 2023 (Amounts in thousands except for share/unit and per share amounts) Secured Debt $ 1,632,902 22.1 % Unsecured Debt 5,757,548 77.9 % Total Debt 7,390,450 100.0 % 23.6 % Common Shares (includes Restricted Shares) 379,291,417 97.0 % Units (includes OP Units and Restricted Units) 11,581,306 3.0 % Total Shares and Units 390,872,723 100.0 % Common Share Price at December 31, 2023 $ 61.16 23,905,776 99.8 % Perpetual Preferred Equity (see below) 37,280 0.2 % Total Equity 23,943,056 100.0 % 76.4 % Total Market Capitalization $ 31,333,506 100.0 % Perpetual Preferred Equity as of December 31, 2023 (Amounts in thousands except for share and per share amounts) Series Call Date Outstanding Shares Liquidation Value Annual Dividend Per Share Annual Dividend Amount Preferred Shares: 8.29% Series K 12/10/26 745,600 $ 37,280 $ 4.145 $ 3,091 Equity Residential Common Share and Unit Weighted Average Amounts Outstanding 2023 2022 Q4 2023 Q4 2022 Weighted Average Amounts Outstanding for Net Income Purposes: Common Shares - basic 378,773,303 376,209,084 379,247,194 377,688,991 Shares issuable from assumed conversion/vesting of: - OP Units 11,180,536 11,836,257 10,596,465 11,668,107 - long-term compensation shares/units 942,712 1,401,485 942,942 887,549 - ATM forward sales — 3,092 — — Total Common Shares and Units - diluted 390,896,551 389,449,918 390,786,601 390,244,647 Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes: Common Shares - basic 378,773,303 376,209,084 379,247,194 377,688,991 OP Units - basic 11,180,536 11,836,257 10,596,465 11,668,107 Total Common Shares and OP Units - basic 389,953,839 388,045,341 389,843,659 389,357,098 Shares issuable from assumed conversion/vesting of: - long-term compensation shares/units 942,712 1,401,485 942,942 887,549 - ATM forward sales — 3,092 — — Total Common Shares and Units - diluted 390,896,551 389,449,918 390,786,601 390,244,647 Period Ending Amounts Outstanding: Common Shares (includes Restricted Shares) 379,291,417 378,429,708 Units (includes OP Units and Restricted Units) 11,581,306 12,429,737 Total Shares and Units 390,872,723 390,859,445 Equity Residential Development and Lease-Up Projects as of December 31, 2023 (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: Laguna Clara II Santa Clara, CA 100% 225 $ 152,621 $ 78,036 $ — 53% Q2 2022 Q4 2024 Q1 2025 Q4 2025 – / – Projects Under Development - Consolidated 225 152,621 78,036 — Projects Completed Not Stabilized: Reverb (fka 9th and W) (2) Washington, D.C. 92% 312 108,027 104,651 — 100% Q3 2021 Q2 2023 Q2 2023 Q3 2024 82% / 79% Projects Completed Not Stabilized - Consolidated 312 108,027 104,651 — UNCONSOLIDATED: Projects Under Development: Alloy Sunnyside (3) Denver, CO 80% 209 70,004 62,071 27,304 94% Q3 2021 Q2 2024 Q2 2024 Q1 2025 – / – Alexan Harrison (3) Harrison, NY 62% 450 200,664 175,135 77,058 92% Q3 2021 Q1 2024 Q4 2024 Q2 2026 – / – Solana Beeler Park (3) Denver, CO 90% 270 85,206 56,178 22,858 64% Q4 2021 Q2 2024 Q3 2024 Q1 2025 – / – Remy (Toll) (3) Frisco, TX 75% 357 98,937 77,170 31,494 80% Q1 2022 Q1 2024 Q4 2024 Q3 2025 – / – Sadie (fka Settler) (Toll) (3) Fort Worth, TX 75% 362 82,775 55,522 14,944 69% Q2 2022 Q2 2024 Q3 2024 Q3 2025 – / – Lyle (Toll) (2) Dallas, TX 75% 334 86,332 52,914 21,962 66% Q3 2022 Q2 2024 Q3 2024 Q1 2026 – / – Projects Under Development - Unconsolidated 1,982 623,918 478,990 195,620 Total Development Projects - Consolidated 537 260,648 182,687 — Total Development Projects - Unconsolidated 1,982 623,918 478,990 195,620 Total Development Projects 2,519 $ 884,566 $ 661,677 $ 195,620 NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS Total Budgeted Capital Cost Q4 2023 NOI Projects Under Development - Consolidated $ 152,621 $ — Projects Completed Not Stabilized - Consolidated 108,027 741 Projects Under Development - Unconsolidated 623,918 (108 ) $ 884,566 $ 633 (1) Except for Reverb where the Company paid off the third party construction loan in the third quarter of 2023, all non-wholly owned projects are being partially funded with project-specific construction loans. None of these loans are recourse to the Company. (2) The land parcels under these projects are subject to long-term ground leases. (3) The Total Budgeted Capital Cost on these projects increased by an aggregate of $13.0 million or 2.5% of initial budget primarily due to higher than budgeted interest incurred on construction loans. Equity Residential Capital Expenditures to Real Estate For the Year Ended December 31, 2023 (Amounts in thousands except for apartment unit and per apartment unit amounts) Same Store Properties Non-Same Store Properties/Other Total Same Store Avg. Per Apartment Unit Total Apartment Units 76,297 3,894 80,191 Building Improvements $ 137,058 $ 11,907 (2) $ 148,965 $ 1,796 Renovation Expenditures 79,291 (1) 22,863 (2) 102,154 1,039 Replacements 66,496 1,727 68,223 872 Capital Expenditures to Real Estate (3) $ 282,845 $ 36,497 $ 319,342 $ 3,707 (1) Renovation Expenditures on 2,799 same store apartment units for the year ended December 31, 2023 approximated $28,328 per apartment unit renovated. (2) Includes expenditures for two properties that have been removed from same store while undergoing major renovations requiring a significant number of apartment units to be vacated to accommodate the extensive planned improvements. The renovation at one property is expected to continue through the second quarter of 2024 with the other continuing into 2025. (3) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. Note: Approximately 40% of the Company's 2023 Capital Expenditures to Real Estate for Same Store Properties were NOI-Enhancing, including the $79.3 million of Renovation Expenditures noted above, with the remainder concentrated in sustainability and property-level technology spend. Equity Residential Normalized EBITDAre Reconciliations (Amounts in thousands) Trailing Twelve Months 2023 2022 December 31, 2023 September 30, 2023 Q4 Q3 Q2 Q1 Q4 Net income $ 868,488 $ 711,573 $ 322,269 $ 181,286 $ 144,862 $ 220,071 $ 165,354 Interest expense incurred, net 269,556 266,709 68,674 68,891 65,590 66,401 65,827 Amortization of deferred financing costs 8,941 9,331 1,918 3,027 2,017 1,979 2,308 Amortization of above/below market lease intangibles 4,464 4,464 1,116 1,116 1,116 1,116 1,116 Depreciation 888,709 876,193 226,788 224,736 221,355 215,830 214,272 Income and other tax expense (benefit) 1,148 1,067 256 258 336 298 175 EBITDA 2,041,306 1,869,337 621,021 479,314 435,276 505,695 449,052 Net (gain) loss on sales of real estate properties (282,539 ) (127,013 ) (155,505 ) (26,912 ) 87 (100,209 ) 21 EBITDAre 1,758,767 1,742,324 465,516 452,402 435,363 405,486 449,073 Write-off of pursuit costs (other expenses) 3,647 4,223 908 746 661 1,332 1,484 (Income) loss from investments in unconsolidated entities - operations 5,378 5,422 1,531 1,242 1,223 1,382 1,575 Realized (gain) loss on investment securities (interest and other income) (1,504 ) 1,714 7 (1,598 ) — 87 3,225 Unrealized (gain) loss on investment securities (interest and other income) (13,466 ) (4,461 ) (9,005 ) (4,461 ) — — — Insurance/litigation settlement or reserve income (interest and other income) (1,055 ) (1,067 ) — (62 ) (193 ) (800 ) (12 ) Insurance/litigation/environmental settlement or reserve expense (other expenses) 17,310 12,361 5,694 3,104 3,513 4,999 745 Advocacy contributions (other expenses) 2,142 527 1,665 150 320 7 50 Data transformation project (other expenses) 3,780 4,900 — 295 1,405 2,080 1,120 Real estate tax transaction adjustment (real estate taxes) — (18,072 ) — — — — (18,072 ) Other (589 ) 449 (602 ) 1 6 6 436 Normalized EBITDAre $ 1,774,410 $ 1,748,320 $ 465,714 $ 451,819 $ 442,298 $ 414,579 $ 439,624 Balance Sheet Items: December 31, 2023 September 30, 2023 Total debt $ 7,390,450 $ 7,479,257 Cash and cash equivalents (50,743 ) (39,250 ) Mortgage principal reserves/sinking funds (29,270 ) (30,234 ) Net debt $ 7,310,437 $ 7,409,773 Note: EBITDA, EBITDAre and Normalized EBITDAre do not include any adjustments for the Company’s share of partially owned unconsolidated entities or the minority partner’s share of partially owned consolidated entities due to the immaterial size of the Company’s partially owned portfolio. Equity Residential Adjustments from FFO to Normalized FFO (Amounts in thousands) Year Ended December 31, Quarter Ended December 31, 2023 2022 Variance 2023 2022 Variance Impairment – non-operating real estate assets $ — $ — $ — $ — $ — $ — Write-off of pursuit costs (other expenses) 3,647 4,780 (1,133 ) 908 1,484 (576 ) Write-off of unamortized deferred financing costs (interest expense) 1,143 717 426 — 348 (348 ) Write-off of unamortized (premiums)/discounts/OCI (interest expense) — 3,947 (3,947 ) — — — Debt extinguishment and preferred share redemption (gains) losses 1,143 4,664 (3,521 ) — 348 (348 ) (Income) loss from investments in unconsolidated entities ─ non-operating assets 1,647 1,204 443 410 317 93 Realized (gain) loss on investment securities (interest and other income) (1,504 ) 1,164 (2,668 ) 7 3,225 (3,218 ) Unrealized (gain) loss on investment securities (interest and other income) (13,466 ) — (13,466 ) (9,005 ) — (9,005 ) Non-operating asset (gains) losses (13,323 ) 2,368 (15,691 ) (8,588 ) 3,542 (12,130 ) Insurance/litigation settlement or reserve income (interest and other income) (1,055 ) (1,650 ) 595 — (12 ) 12 Insurance/litigation/environmental settlement or reserve expense (other expenses) 17,310 1,495 15,815 5,694 745 4,949 Advocacy contributions (other expenses) 2,142 1,512 630 1,665 50 1,615 Data transformation project (other expenses) 3,780 1,120 2,660 — 1,120 (1,120 ) Real estate tax transaction adjustment (real estate taxes) — (18,072 ) 18,072 — (18,072 ) 18,072 Other (589 ) 1,694 (2,283 ) (602 ) 436 (1,038 ) Other miscellaneous items 21,588 (13,901 ) 35,489 6,757 (15,733 ) 22,490 Adjustments from FFO to Normalized FFO $ 13,055 $ (2,089 ) $ 15,144 $ (923 ) $ (10,359 ) $ 9,436 Note: 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 Normalized FFO Guidance and Assumptions The guidance/projections provided below are based on current expectations and are forward-looking. All guidance is given on a Normalized FFO basis. Therefore, certain items excluded from Normalized FFO, such as debt extinguishment costs/prepayment penalties and the write-off of pursuit costs, are not included in the estimates provided on this page. 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. Q1 2024 Full Year 2024 2024 Normalized FFO Guidance (per share diluted) Expected Normalized FFO Per Share $0.88 to $0.92 $3.80 to $3.90 2024 Same Store Assumptions (includes Residential and Non-Residential) Physical Occupancy 95.9% Revenue change 2.0% to 3.0% Expense change 3.5% to 4.5% NOI change (1) 1.0% to 2.6% 2024 Transaction Assumptions Consolidated rental acquisitions $1.0B Consolidated rental dispositions $1.0B Transaction Accretion (Dilution) (25 basis points) 2024 Debt Assumptions Weighted average debt outstanding $7.27B to $7.47B Interest expense, net (on a Normalized FFO basis) $268.0M to $274.0M Capitalized interest $9.7M to $13.7M 2024 Capital Expenditures to Real Estate Assumptions for Same Store Properties (2) Capital Expenditures to Real Estate for Same Store Properties $295.0M Capital Expenditures to Real Estate per Same Store Apartment Unit $3,800 2024 Other Guidance Assumptions Property management expense $124.0M to $126.0M General and administrative expense $57.5M to $61.5M Debt offerings No amounts budgeted Weighted average Common Shares and Units - Diluted 391.1M (1) Approximately 20 basis point change in NOI percentage = $0.01 per share change in EPS/FFO per share/Normalized FFO per share. (2) Similar to 2023, the Company expects that approximately 40% of its Capital Expenditures to Real Estate for Same Store Properties will be NOI-Enhancing (primarily renovations, sustainability and property-level technology spend). During 2024, the Company expects to spend approximately $104.0 million for apartment unit Renovation Expenditures on approximately 3,250 same store apartment units at an average cost of approximately $32,000 per apartment unit renovated with the remainder of the NOI-Enhancing spend consisting of sustainability and property-level technology expenditures. Equity Residential Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms (Amounts in thousands except per share and per apartment unit data) (All per share data is diluted) This Earnings Release and Supplemental Financial Information includes certain non-GAAP financial measures and other terms that management believes are helpful in understanding our business. The definitions and calculations of these non-GAAP financial measures and other terms may differ from the definitions and methodologies used by other real estate investment trusts (“REIT”) and, accordingly, may not be comparable. These non-GAAP financial measures should not be considered as an alternative to net earnings or any other measurement of performance computed in accordance with accounting principles generally accepted in the United States (“GAAP”) or as an alternative to cash flows from specific operating, investing or financing activities. Furthermore, these non-GAAP financial measures are not intended to be a measure of cash flow or liquidity. Acquisition Capitalization Rate or Cap Rate – NOI that the Company anticipates receiving in the next 12 months (or the year two or three stabilized NOI for properties that are in lease-up at acquisition) less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $100-$450 per apartment unit depending on the age and condition of the asset) divided by the gross purchase price of the asset. The weighted average Acquisition Cap Rate for acquired properties is weighted based on the projected NOI streams and the relative purchase price for each respective property. Average Rental Rate – Total Residential rental revenues reflected on a straight-line basis in accordance with GAAP divided by the weighted average occupied apartment units for the reporting period presented. Bad Debt, Net – Change in rental income due to bad debt write-offs and reserves, net of amounts collected on previously written-off or reserved accounts. Blended Rate – The weighted average of New Lease Change and Renewal Rate Achieved. Capital Expenditures to Real Estate: Building Improvements – Includes roof replacement, paving, building mechanical equipment systems, exterior siding and painting, major landscaping, furniture, fixtures and equipment for amenities and common areas, vehicles and office and maintenance equipment. NOI-Enhancing – Primarily includes Renovation Expenditures as well as sustainability and property-level technology expenditures that are intended to increase revenues or decrease expenses. Renovation Expenditures – Apartment unit renovation costs (primarily kitchens and baths) designed to reposition these units for higher rental levels in their respective markets. Replacements – Includes appliances, mechanical equipment, fixtures and flooring (including hardwood and carpeting). Debt Balances: Commercial Paper Program – The Company may borrow up to a maximum of $1.0 billion under its Commercial Paper Program subject to market conditions. The notes bear interest at various floating rates. Revolving Credit Facility – The Company’s $2.5 billion unsecured revolving credit facility matures October 26, 2027. The interest rate on advances under the facility will generally be SOFR plus a spread (currently 0.725%), or based on bids received from the lending group, and an annual facility fee (currently 0.125%). Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating. In addition, the Company limits its utilization of the facility in order to maintain liquidity to support its $1.0 billion Commercial Paper Program along with certain other obligations. The following table presents the availability on the Company’s unsecured revolving credit facility: December 31, 2023 Unsecured revolving credit facility commitment $ 2,500,000 Commercial paper balance outstanding (410,000 ) Unsecured revolving credit facility balance outstanding — Other restricted amounts (3,415 ) Unsecured revolving credit facility availability $ 2,086,585 Debt Covenant Compliance – Our unsecured debt includes certain financial and operating covenants including, among other things, maintenance of certain financial ratios. These provisions are contained in the indentures applicable to each notes payable or the credit agreement for our line of credit. The Debt Covenant Compliance ratios that are provided show the Company's compliance with certain covenants governing our public unsecured debt. These covenants generally reflect our most restrictive financial covenants. The Company was in compliance with its unsecured debt covenants for all periods presented. Development Yield – NOI that the Company anticipates receiving in the next 12 months following stabilization less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $50-$150 per apartment unit depending on the type of asset) divided by the Total Budgeted Capital Cost of the asset. The weighted average Development Yield for development properties is weighted based on the projected NOI streams and the relative Total Budgeted Capital Cost for each respective property. Disposition Yield – NOI that the Company anticipates giving up in the next 12 months less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $150-$450 per apartment unit depending on the age and condition of the asset) divided by the gross sales price of the asset. The weighted average Disposition Yield for sold properties is weighted based on the projected NOI streams and the relative sales price for each respective property. Earnings Per Share ("EPS") – Net income per share calculated in accordance with GAAP. Expected EPS is calculated on a basis consistent with actual EPS. Due to the uncertain timing and extent of property dispositions and the resulting gains/losses on sales, actual EPS could differ materially from expected EPS. EBITDA for Real Estate and Normalized EBITDA for Real Estate: Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”) – The National Association of Real Estate Investment Trusts (“Nareit”) defines EBITDAre (September 2017 White Paper) as net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for gains and losses from sales of depreciated operating properties, impairment write-downs of depreciated operating properties, impairment write-downs of investments in unconsolidated entities caused by a decrease in value of depreciated operating properties within the joint venture and adjustments to reflect the Company’s share of EBITDAre of investments in unconsolidated entities. The Company believes that EBITDAre is useful to investors, creditors and rating agencies as a supplemental measure of the Company’s ability to incur and service debt because it is a recognized measure of performance by the real estate industry, and by excluding gains or losses related to sales or impairment of depreciated operating properties, EBITDAre can help compare the Company’s credit strength between periods or as compared to different companies. Normalized Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“Normalized EBITDAre”) – Represents net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for non-comparable items. Normalized EBITDAre, total debt to Normalized EBITDAre and net debt to Normalized EBITDAre are important metrics in evaluating the credit strength of the Company and its ability to service its debt obligations. The Company believes that Normalized EBITDAre, total debt to Normalized EBITDAre, and net debt to Normalized EBITDAre are useful to investors, creditors and rating agencies because they allow investors to compare the Company’s credit strength to prior reporting periods and to other companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual credit quality. Economic Gain (Loss) – Economic Gain (Loss) is calculated as the net gain (loss) on sales of real estate properties in accordance with GAAP, excluding accumulated depreciation. The Company generally considers Economic Gain (Loss) to be an appropriate supplemental measure to net gain (loss) on sales of real estate properties in accordance with GAAP because it is one indication of the gross value created by the Company's acquisition, development, renovation, management and ultimate sale of a property and because it helps investors to understand the relationship between the cash proceeds from a sale and the cash invested in the sold property. The following table presents a reconciliation of net gain (loss) on sales of real estate properties in accordance with GAAP to Economic Gain (Loss): Year Ended December 31, 2023 Quarter Ended December 31, 2023 Net Gain (Loss) on Sales of Real Estate Properties $ 282,539 $ 155,505 Accumulated Depreciation Gain (106,110 ) (50,353 ) Economic Gain (Loss) $ 176,429 $ 105,152 Forecasted Embedded Growth – The positive or negative contribution to growth implied by annualizing total lease income anticipated for the last month of the current year (without regard to vacancy) compared to anticipated actual full year lease income for the current year (without regard to vacancy) and excluding the impact of Leasing Concessions and other income. This metric is a helpful data point in that it captures the impact of leases in existence at the end of the current year and their impact on rental income for the following year. FFO and Normalized FFO: Funds From Operations (“FFO”) – Nareit defines FFO (December 2018 White Paper) as net income (computed in accordance with GAAP), excluding gains or losses from sales and impairment write-downs of depreciable real estate and land when connected to the main business of a REIT, impairment write-downs of investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity and depreciation and amortization related to real estate. Adjustments for partially owned consolidated and unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. Expected FFO per share is calculated on a basis consistent with actual FFO per share and is considered an appropriate supplemental measure of expected operating performance when compared to expected EPS. The Company believes that FFO and FFO available to Common Shares and Units are helpful to investors as supplemental measures of the operating performance of a real estate company, because they are recognized measures of performance by the real estate industry and by excluding gains or losses from sales and impairment write-downs of depreciable real estate and excluding depreciation related to real estate (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO and FFO available to Common Shares and Units can help compare the operating performance of a company’s real estate between periods or as compared to different companies. Normalized Funds From Operations ("Normalized FFO" or "NFFO") – Normalized FFO begins with FFO and excludes: the impact of any expenses relating to non-operating real estate asset impairment; pursuit cost write-offs; gains and losses from early debt extinguishment and preferred share redemptions; gains and losses from non-operating assets; and other miscellaneous items. Expected Normalized FFO per share is calculated on a basis consistent with actual Normalized FFO per share and is considered an appropriate supplemental measure of expected operating performance when compared to expected EPS. The Company believes that Normalized FFO and Normalized FFO available to Common Shares and Units are helpful to investors as supplemental measures of the operating performance of a real estate company because they allow investors to compare the Company's operating performance to its performance in prior reporting periods and to the operating performance of other real estate companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company's actual operating results. FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units do not represent net income, net income available to Common Shares or net cash flows from operating activities in accordance with GAAP. Therefore, FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units should not be exclusively considered as alternatives to net income, net income available to Common Shares or net cash flows from operating activities as determined by GAAP or as a measure of liquidity. The Company's calculation of FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units may differ from other real estate companies due to, among other items, variations in cost capitalization policies for capital expenditures and, accordingly, may not be comparable to such other real estate companies. FFO available to Common Shares and Units and Normalized FFO available to Common Shares and Units are calculated on a basis consistent with net income available to Common Shares and reflects adjustments to net income for preferred distributions and premiums on redemption of preferred shares in accordance with GAAP. The equity positions of various individuals and entities that contributed their properties to the Operating Partnership in exchange for OP Units are collectively referred to as the "Noncontrolling Interests – Operating Partnership". Subject to certain restrictions, the Noncontrolling Interests – Operating Partnership may exchange their OP Units for Common Shares on a one-for-one basis. The following table presents reconciliations of EPS to FFO per share and Normalized FFO per share for Consolidated Statements of Funds From Operations and Normalized Funds From Operations. Actual Actual Expected Expected Actual 2023 Actual 2022 Q4 2023 Q4 2022 Q1 2024 2024 Per Share Per Share Per Share Per Share Per Share Per Share EPS – Diluted $ 2.20 $ 2.05 $ 0.82 $ 0.42 $0.77 to $0.81 $2.91 to $3.01 Depreciation expense 2.27 2.26 0.58 0.55 0.58 2.25 Net (gain) loss on sales (0.72 ) (0.78 ) (0.40 ) — (0.48 ) (1.42 ) Impairment – operating real estate assets — — — — — — FFO per share – Diluted 3.75 3.53 1.00 0.97 0.87 to 0.91 3.74 to 3.84 Impairment – non-operating real estate assets — — — — — — Write-off of pursuit costs 0.01 0.01 — — — 0.01 Debt extinguishment and preferred share redemption (gains) losses — 0.01 — — — — Non-operating asset (gains) losses (0.03 ) 0.01 (0.02 ) 0.01 — 0.01 Other miscellaneous items 0.05 (0.04 ) 0.02 (0.04 ) 0.01 0.04 Normalized FFO per share – Diluted $ 3.78 $ 3.52 $ 1.00 $ 0.94 $0.88 to $0.92 $3.80 to $3.90 Lease-Up NOI – Represents NOI for development properties: (i) in various stages of lease-up; and (ii) where lease-up has been completed but the properties were not stabilized (defined as having achieved 90% occupancy for three consecutive months) for all of the current and comparable periods presented. Leasing Concessions – Reflects upfront discounts on both new move-in and renewal leases on a straight-line basis. Net Operating Income (“NOI”) – NOI is the Company’s primary financial measure for evaluating each of its apartment properties. NOI is defined as rental income less direct property operating expenses (including real estate taxes and insurance). The Company believes that NOI is helpful to investors as a supplemental measure of its operating performance because it is a direct measure of the actual operating results of the Company's apartment properties. NOI does not include an allocation of property management expenses either in the current or comparable periods. Rental income for all leases and operating expense for ground leases (for both same store and non-same store properties) are reflected on a straight-line basis in accordance with GAAP for the current and comparable periods. The following tables present reconciliations of operating income per the consolidated statements of operations to NOI, along with rental income, operating expenses and NOI per the consolidated statements of operations allocated between same store and non-same store/other results (see Same Store Results): Year Ended December 31, Quarter Ended December 31, 2023 2022 2023 2022 Operating income $ 1,160,585 $ 1,116,046 $ 392,501 $ 242,363 Adjustments: Property management 119,804 110,304 29,490 27,269 General and administrative 60,716 58,710 11,581 11,677 Depreciation 888,709 882,168 226,788 214,272 Net (gain) loss on sales of real estate properties (282,539 ) (304,325 ) (155,505 ) 21 Total NOI $ 1,947,275 $ 1,862,903 $ 504,855 $ 495,602 Rental income: Same store $ 2,754,711 $ 2,609,766 $ 711,756 $ 685,317 Non-same store/other 119,253 125,414 15,744 14,386 Total rental income 2,873,964 2,735,180 727,500 699,703 Operating expenses: Same store 873,448 837,602 216,409 213,613 Non-same store/other 53,241 34,675 6,236 (9,512 ) Total operating expenses 926,689 872,277 222,645 204,101 NOI: Same store 1,881,263 1,772,164 495,347 471,704 Non-same store/other 66,012 90,739 9,508 23,898 Total NOI $ 1,947,275 $ 1,862,903 $ 504,855 $ 495,602 New Lease Change – The net effective change in rent (inclusive of Leasing Concessions) for a lease with a new or transferring resident compared to the rent for the prior lease of the identical apartment unit, regardless of lease term. Non-Residential – Consists of revenues and expenses from retail and public parking garage operations. Non-Same Store Properties – For annual comparisons, primarily includes all properties acquired during 2022 and 2023, plus any properties in lease-up and not stabilized as of January 1, 2022. Percentage of Residents Renewing – Leases renewed expressed as a percentage of total renewal offers extended during the reporting period. Physical Occupancy – The weighted average occupied apartment units for the reporting period divided by the average of total apartment units available for rent for the reporting period. Pricing Trend – Weighted average of 12-month base rent including amenity amount less Leasing Concessions on 12-month signed leases for the reporting period. Renewal Rate Achieved – The net effective change in rent (inclusive of Leasing Concessions) for a new lease on an apartment unit where the lease has been renewed as compared to the rent for the prior lease of the identical apartment unit, regardless of lease term. Residential – Consists of multifamily apartment revenues and expenses. Same Store Operating Expenses: Insurance – Includes third-party insurance premiums, broker fees and other insurance-related procurement fees along with an allocation of estimated uninsured losses. On-site Payroll – Includes payroll and related expenses for on-site personnel including property managers, leasing consultants and maintenance staff. Other On-site Operating Expenses – Includes ground lease costs and administrative costs such as office supplies, telephone and data charges and association and business licensing fees. Repairs and Maintenance – Includes general maintenance costs, apartment unit turnover costs including interior painting, routine landscaping, security, exterminating, fire protection, snow removal, elevator, roof and parking lot repairs and other miscellaneous building repair and maintenance costs. Utilities – Represents gross expenses prior to any recoveries under the Resident Utility Billing System (“RUBS”). Recoveries are reflected in rental income. Same Store Properties – For annual comparisons, primarily includes all properties acquired or completed that are stabilized prior to January 1, 2022, less properties subsequently sold. Properties are included in Same Store when they are stabilized for all of the current and comparable periods presented. Same Store Residential Revenues – Revenues from our Same Store Properties presented on a GAAP basis which reflects the impact of Leasing Concessions on a straight-line basis. Same Store Residential Revenues with Leasing Concessions on a cash basis is presented in Same Store Results and is considered by the Company to be a supplemental measure to Same Store Residential Revenues in conformity with GAAP to help investors evaluate the impact of both current and historical Leasing Concessions on GAAP-based Same Store Residential Revenues and to more readily enable comparisons to revenue as reported by other companies. Same Store Residential Revenues with Leasing Concessions on a cash basis reflects the impact of Leasing Concessions used in the period and allows an investor to understand the historical trend in cash Leasing Concessions. % of Stabilized Budgeted NOI – Represents original budgeted 2024 NOI for stabilized properties and projected annual NOI at stabilization (defined as having achieved 90% occupancy for three consecutive months) for properties that are in lease-up. Total Budgeted Capital Cost – Estimated remaining cost for projects under development and/or developed plus all capitalized costs incurred to date, including land acquisition costs, construction costs, capitalized real estate taxes and insurance, capitalized interest and loan fees, permits, professional fees, allocated development overhead and other regulatory fees, plus any estimates of costs remaining to be funded for all projects, all in accordance with GAAP. Amounts for partially owned consolidated and unconsolidated properties are presented at 100% of the project. Total Market Capitalization – The aggregate of the market value of the Company’s outstanding common shares, including restricted shares, the market value of the Company’s operating partnership units outstanding, including restricted units (based on the market value of the Company’s common shares) and the outstanding principal balance of debt. The Company believes this is a useful measure of a real estate operating company’s long-term liquidity and balance sheet strength, because it shows an approximate relationship between a company’s total debt and the current total market value of its assets based on the current price at which the Company’s common shares trade. However, because this measure of leverage changes with fluctuations in the Company’s share price, which occur regularly, this measure may change even when the Company’s earnings, interest and debt levels remain stable. Traffic – Consists of an expression of interest in an apartment by completing an in-person tour, self-guided tour or virtual tour that may result in an application to lease. Transaction Accretion (Dilution) – Represents the spread between the Acquisition Cap Rate and the Disposition Yield. Turnover – Total Residential move-outs (including inter-property and intra-property transfers) divided by total Residential apartment units. Unencumbered NOI % – Represents NOI generated by consolidated real estate assets unencumbered by outstanding secured debt as a percentage of total NOI generated by all of the Company's consolidated real estate assets. Unlevered Internal Rate of Return (“IRR”) – The Unlevered IRR on sold properties is the compound annual rate of return calculated by the Company based on the timing and amount of: (i) the gross purchase price of the property plus any direct acquisition costs incurred by the Company; (ii) total revenues earned during the Company’s ownership period; (iii) total direct property operating expenses (including real estate taxes and insurance) incurred during the Company’s ownership period; (iv) capital expenditures incurred during the Company’s ownership period; and (v) the gross sales price of the property net of selling costs. The calculation of the Unlevered IRR does not include an adjustment for the Company’s property management expense, general and administrative expense or interest expense (including loan assumption costs and other loan-related costs). Therefore, the Unlevered IRR is not a substitute for net income as a measure of our performance. Management believes that the Unlevered IRR achieved during the period a property is owned by the Company is useful because it is one indication of the gross value created by the Company’s acquisition, development, renovation, management and ultimate sale of a property, before the impact of Company overhead. The Unlevered IRR achieved on the properties as cited in this release should not be viewed as an indication of the gross value created with respect to other properties owned by the Company, and the Company does not represent that it will achieve similar Unlevered IRRs upon the disposition of other properties. The weighted average Unlevered IRR for sold properties is weighted based on all cash flows over the investment period for each respective property, including net sales proceeds. Weighted Average Coupons – Contractual interest rate for each debt instrument weighted by principal balances as of December 31, 2023. In case of debt for which fair value hedges are in place, the rate payable under the corresponding derivatives is used in lieu of the contractual interest rate. Weighted Average Rates – Interest expense for each debt instrument for the year ended December 31, 2023 weighted by its average principal balance for the same period. Interest expense includes amortization of premiums, discounts and other comprehensive income on debt and related derivative instruments. In case of debt for which derivatives are in place, the income or expense recognized under the corresponding derivatives is included in the total interest expense for the period. View source version on businesswire.com: https://www.businesswire.com/news/home/20240130619582/en/