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 First Quarter 2024 Results By: Equity Residential via Business Wire April 23, 2024 at 16:15 PM EDT Same Store Results Ahead of Expectations Equity Residential (NYSE: EQR) today reported results for the quarter ended March 31, 2024. First Quarter 2024 Results All per share results are reported as available to common shares/units on a diluted basis. Quarter Ended March 31, 2024 2023 $ Change % Change Earnings Per Share (EPS) $ 0.77 $ 0.56 $ 0.21 37.5 % Funds from Operations (FFO) per share $ 0.87 $ 0.85 $ 0.02 2.4 % Normalized FFO (NFFO) per share $ 0.93 $ 0.87 $ 0.06 6.9 % Recent Highlights Same store revenue increased 4.1% for the first quarter of 2024 compared to the first quarter of 2023, driven by healthy demand and modest supply across most of our markets. Same store expense increased 1.3% with low or negative growth in our primary expense categories. The Company's continued focus on expense efficiency has delivered a five-year compounded annual growth rate of same store expenses of 3.1%. Same store Net Operating Income (NOI) increased 5.5%. Our focus on same store revenue growth, same store expense and corporate overhead efficiency and limited exposure to higher interest rates led to strong growth. Our high quality customer experience along with the overall desirability of our locations has led to the lowest quarterly same store Turnover in our history of 8.6%. During the first quarter of 2024, the Company sold three properties - one in Boston, one in Orange County and one in San Francisco - consisting of 504 apartment units, for an aggregate sale price of approximately $248.5 million. During the first quarter of 2024, the Company repurchased and retired 652,452 of its common shares, at a weighted average purchase price of $58.95 per share, for an aggregate purchased amount of approximately $38.5 million. “Our operating business performed very well this quarter positioning us favorably as we enter our primary leasing season,” said Mark J. Parrell, Equity Residential’s President and CEO. “The positive demand dynamics in our affluent renter demographic, limited new apartment supply in our existing predominantly coastal markets and our laser focus on expense management continue to produce good results.” Results Per Share The change in EPS for the quarter ended March 31, 2024 compared to the same period of 2023 is due primarily to higher property sale gains, the various adjustment items listed on page 25 of this release and the items described below. The per share change in FFO for the quarter ended March 31, 2024 compared to the same period of 2023 is due primarily to the various adjustment items listed on page 25 of this release and the items described below. The per share change in Normalized FFO is due primarily to: Positive/(Negative) Impact First Quarter 2024 vs. First Quarter 2023 Same store NOI $ 0.07 2024 and 2023 transaction activity impact on NOI, net (0.01 ) Corporate overhead (1) (0.01 ) Other items 0.01 Net $ 0.06 (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 27 through 33 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 6, 29 and 30 of this release. Same Store Results The following table shows the total same store results for the periods presented (includes Residential and Non-Residential). First Quarter 2024 vs. First Quarter 2023 First Quarter 2024 vs. Fourth Quarter 2023 Apartment Units 77,373 77,950 Physical Occupancy 96.3% vs. 95.9% 96.3% vs. 95.8% Revenues (1) 4.1% 1.1% Expenses 1.3% 6.5% NOI 5.5% (1.3%) (1) See page 10 for further discussion. 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. First Quarter 2024 vs. First Quarter 2023 First Quarter 2024 vs. Fourth Quarter 2023 % Change % Change Same Store Residential Revenues- comparable period Lease rates 2.9 % 0.1 % Leasing Concessions (0.3 %) 0.0 % Vacancy gain (loss) 0.4 % 0.6 % Bad Debt, Net (1) 0.3 % 0.0 % Other (2) 0.6 % (0.1 %) Same Store Residential Revenues- current period 3.9 % 0.6 % (1) Change in rental income due to bad debt write-offs and reserves, net of amounts (including governmental rental assistance payments) collected on previously written-off or reserved accounts. See page 12 for more detail. (2) Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items. See page 11 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 77,373 same store apartment units): April 2024 (1) Q1 2024 Q4 2023 Physical Occupancy 96.4% 96.3% 95.8% Percentage of Residents Renewing by quarter/month 61.0% 61.1% 59.1% New Lease Change 0.1% (2.2%) (4.6%) Renewal Rate Achieved 5.1% 4.7% 5.1% Blended Rate 3.1% 1.6% 0.7% (1) April 2024 results are preliminary as of April 18th. Investment Activity The Company did not acquire any operating properties during the first quarter of 2024. During the first quarter of 2024, the Company sold three properties - one in Boston, one in Orange County and one in suburban San Francisco - consisting of 504 apartment units, for an aggregate sale price of approximately $248.5 million at a weighted average Disposition Yield of 5.5%, generating an Unlevered IRR of 13.1%. The average age of the properties sold in the first quarter of 2024 was approximately 40 years. During the first quarter of 2024, the Company began construction on The Basin, a 440 apartment unit property located in suburban Boston with a Total Budgeted Capital Cost of $232.2 million. Capital Markets Activity During the first quarter of 2024, the Company repurchased and retired 652,452 of its common shares, at a weighted average purchase price of $58.95 per share, for an aggregate purchased amount of approximately $38.5 million. Combined with the Company’s fourth quarter 2023 repurchase activity, the Company has repurchased approximately $87.5 million of its common shares at a weighted average purchase price of $57.72 per share. Second Quarter 2024 Guidance At this time the Company is not revising its annual operating, EPS, FFO per share or Normalized FFO per share guidance provided as part of its fourth quarter 2023 earnings release. See page 26. The Company has established guidance ranges for the second quarter of 2024 EPS, FFO per share and Normalized FFO per share as listed below: Q2 2024 Guidance EPS $0.45 to $0.49 FFO per share $0.91 to $0.95 Normalized FFO per share $0.92 to $0.96 The difference between the first quarter of 2024 actual EPS of $0.77 and the second quarter of 2024 EPS guidance midpoint of $0.47 is due primarily to higher expected same store NOI, lower expected property sale gains and lower expected other expenses. The difference between the first quarter of 2024 actual FFO of $0.87 per share and the second quarter of 2024 FFO guidance midpoint of $0.93 per share is due primarily to higher expected same store NOI and lower expected other expenses. The difference between the first quarter of 2024 actual Normalized FFO of $0.93 per share and the second quarter of 2024 Normalized FFO guidance midpoint of $0.94 per share is due primarily to higher expected same store NOI. About Equity Residential Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. Equity Residential owns or has investments in 299 properties consisting of 79,688 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, April 24, 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) Quarter Ended March 31, 2024 2023 REVENUES Rental income $ 730,818 $ 705,088 EXPENSES Property and maintenance 134,630 137,579 Real estate taxes and insurance 108,927 106,669 Property management 35,458 31,466 General and administrative 15,720 16,165 Depreciation 225,695 215,830 Total expenses 520,430 507,709 Net gain (loss) on sales of real estate properties 188,185 100,209 Interest and other income 9,329 1,538 Other expenses (31,738 ) (8,995 ) Interest: Expense incurred, net (67,212 ) (66,401 ) Amortization of deferred financing costs (1,918 ) (1,979 ) Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of land parcels 307,034 221,751 Income and other tax (expense) benefit (304 ) (298 ) Income (loss) from investments in unconsolidated entities (1,698 ) (1,382 ) Net income 305,032 220,071 Net (income) loss attributable to Noncontrolling Interests: Operating Partnership (8,275 ) (7,059 ) Partially Owned Properties (970 ) (977 ) Net income attributable to controlling interests 295,787 212,035 Preferred distributions (547 ) (772 ) Premium on redemption of Preferred Shares (1,444 ) — Net income available to Common Shares $ 293,796 $ 211,263 Earnings per share – basic: Net income available to Common Shares $ 0.78 $ 0.56 Weighted average Common Shares outstanding 378,812 378,341 Earnings per share – diluted: Net income available to Common Shares $ 0.77 $ 0.56 Weighted average Common Shares outstanding 390,561 390,664 Distributions declared per Common Share outstanding $ 0.675 $ 0.6625 Equity Residential Consolidated Statements of Funds From Operations and Normalized Funds From Operations (Amounts in thousands except per share and Unit data) (Unaudited) Quarter Ended March 31, 2024 2023 Net income $ 305,032 $ 220,071 Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties (970 ) (977 ) Preferred distributions (547 ) (772 ) Premium on redemption of Preferred Shares (1,444 ) — Net income available to Common Shares and Units 302,071 218,322 Adjustments: Depreciation 225,695 215,830 Depreciation – Non-real estate additions (955 ) (1,156 ) Depreciation – Partially Owned Properties (542 ) (545 ) Depreciation – Unconsolidated Properties 335 632 Net (gain) loss on sales of real estate properties (188,185 ) (100,209 ) FFO available to Common Shares and Units 338,419 332,874 Adjustments (see note for additional detail): Write-off of pursuit costs 548 1,332 Debt extinguishment and preferred share redemption (gains) losses 1,444 — Non-operating asset (gains) losses (6,106 ) 714 Other miscellaneous items 30,591 6,292 Normalized FFO available to Common Shares and Units $ 364,896 $ 341,212 FFO $ 340,410 $ 333,646 Preferred distributions (547 ) (772 ) Premium on redemption of Preferred Shares (1,444 ) — FFO available to Common Shares and Units $ 338,419 $ 332,874 FFO per share and Unit – basic $ 0.87 $ 0.85 FFO per share and Unit – diluted $ 0.87 $ 0.85 Normalized FFO $ 365,443 $ 341,984 Preferred distributions (547 ) (772 ) Normalized FFO available to Common Shares and Units $ 364,896 $ 341,212 Normalized FFO per share and Unit – basic $ 0.94 $ 0.88 Normalized FFO per share and Unit – diluted $ 0.93 $ 0.87 Weighted average Common Shares and Units outstanding – basic 389,481 389,851 Weighted average Common Shares and Units outstanding – diluted 390,561 390,664 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) March 31, December 31, 2024 2023 ASSETS Land $ 5,550,882 $ 5,581,876 Depreciable property 22,930,036 22,938,426 Projects under development 155,729 78,036 Land held for development 64,466 114,300 Investment in real estate 28,701,113 28,712,638 Accumulated depreciation (9,978,012 ) (9,810,337 ) Investment in real estate, net 18,723,101 18,902,301 Investments in unconsolidated entities1 289,272 282,049 Cash and cash equivalents 44,535 50,743 Restricted deposits 152,025 89,252 Right-of-use assets 454,035 457,266 Other assets 231,829 252,953 Total assets $ 19,894,797 $ 20,034,564 LIABILITIES AND EQUITY Liabilities: Mortgage notes payable, net $ 1,633,870 $ 1,632,902 Notes, net 5,349,938 5,348,417 Line of credit and commercial paper 225,921 409,131 Accounts payable and accrued expenses 146,072 87,377 Accrued interest payable 49,190 65,716 Lease liabilities 310,422 311,640 Other liabilities 274,919 272,596 Security deposits 68,818 69,178 Distributions payable 263,615 259,231 Total liabilities 8,322,765 8,456,188 Commitments and contingencies Redeemable Noncontrolling Interests – Operating Partnership 298,219 289,248 Equity: Shareholders' equity: Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized; 343,100 shares issued and outstanding as of March 31, 2024 and 745,600 shares issued and outstanding as of December 31, 2023 17,155 37,280 Common Shares of beneficial interest, $0.01 par value; 1,000,000,000 shares authorized; 378,939,751 shares issued and outstanding as of March 31, 2024 and 379,291,417 shares issued and outstanding as of December 31, 2023 3,789 3,793 Paid in capital 9,603,743 9,601,866 Retained earnings 1,436,671 1,437,185 Accumulated other comprehensive income (loss) 6,314 5,704 Total shareholders’ equity 11,067,672 11,085,828 Noncontrolling Interests: Operating Partnership 207,272 202,306 Partially Owned Properties (1,131 ) 994 Total Noncontrolling Interests 206,141 203,300 Total equity 11,273,813 11,289,128 Total liabilities and equity $ 19,894,797 $ 20,034,564 1 Includes $227.3 million and $220.2 million in unconsolidated development projects as of March 31, 2024 and December 31, 2023, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects. Equity Residential Portfolio Summary As of March 31, 2024 % of Stabilized Average Apartment Budgeted Rental Markets/Metro Areas Properties Units NOI Rate Established Markets: Los Angeles 58 14,732 17.3 % $ 2,925 Orange County 12 3,718 5.0 % 2,900 San Diego 12 2,878 4.1 % 3,103 Subtotal – Southern California 82 21,328 26.4 % 2,945 Washington, D.C. 48 15,028 16.4 % 2,666 San Francisco 42 11,567 15.3 % 3,282 New York 34 8,536 14.2 % 4,592 Boston 26 7,077 11.7 % 3,557 Seattle 44 9,267 10.5 % 2,569 Subtotal – Established Markets 276 72,803 94.5 % 3,146 Expansion Markets: Denver 9 2,792 2.8 % 2,409 Atlanta 7 2,111 1.6 % 2,049 Dallas/Ft. Worth 4 1,241 0.7 % 1,905 Austin 3 741 0.4 % 1,842 Subtotal – Expansion Markets 23 6,885 5.5 % 2,148 Total 299 79,688 100.0 % $ 3,061 Properties Apartment Units Wholly Owned Properties 285 76,628 Partially Owned Properties – Consolidated 14 3,060 299 79,688 Note: Projects under development are not included in the Portfolio Summary until construction has been completed. Equity Residential Portfolio Rollforward Q1 2024 ($ in thousands) Properties Apartment Units Sales Price Disposition Yield 12/31/2023 302 80,191 Dispositions: Consolidated Rental Properties (3 ) (504 ) $ (248,500 ) (5.5 %) Configuration Changes — 1 3/31/2024 299 79,688 Equity Residential First Quarter 2024 vs. First Quarter 2023 Same Store Results/Statistics Including 77,373 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands except for Average Rental Rate) Results Statistics Description Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Q1 2024 $ 716,665 $ 231,905 $ 484,760 $ 3,077 96.3 % 8.6 % Q1 2023 $ 688,303 $ 228,961 $ 459,342 $ 2,975 95.9 % 9.1 % Change $ 28,362 $ 2,944 $ 25,418 $ 102 0.4 % (0.5 %) Change 4.1 % (1) 1.3 % 5.5 % 3.4 % First Quarter 2024 vs. Fourth Quarter 2023 Same Store Results/Statistics Including 77,950 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands except for Average Rental Rate) Results Statistics Description Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Q1 2024 $ 720,261 $ 233,087 $ 487,174 $ 3,070 96.3 % 8.6 % Q4 2023 $ 712,383 $ 218,881 $ 493,502 $ 3,067 95.8 % 9.5 % Change $ 7,878 $ 14,206 $ (6,328 ) $ 3 0.5 % (0.9 %) Change 1.1 % (1) 6.5 % (1.3 %) 0.1 % (1) Non-Residential contributed 0.20% and 0.50% to quarterly and sequential same store revenue growth, respectively, primarily due to improved collectibility expectations for certain Non-Residential tenants, resulting in the reinstatement of their respective straight-line receivable balances in the first quarter of 2024. The Company contemplated these contributions in its previous 2024 annual guidance. Equity Residential Same Store Residential Revenues – GAAP to Cash Basis (1) ($ in thousands) First Quarter 2024 vs. First Quarter 2023 First Quarter 2024 vs. Fourth Quarter 2023 77,373 Same Store Apartment Units 77,950 Same Store Apartment Units Q1 2024 Q1 2023 Q1 2024 Q4 2023 Same Store Residential Revenues (GAAP Basis) $ 687,139 $ 661,626 $ 690,735 $ 686,778 Leasing Concessions amortized 5,076 2,801 5,093 4,810 Leasing Concessions granted (2) (4,951 ) (4,167 ) (4,955 ) (5,392 ) Same Store Residential Revenues with Leasing Concessions on a cash basis $ 687,264 $ 660,260 $ 690,873 $ 686,196 % change - GAAP revenue 3.9 % 0.6 % % change - cash revenue 4.1 % 0.7 % (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail. (2) Concession usage is primarily concentrated in Los Angeles, San Francisco and Seattle. Same Store Net Operating Income By Quarter Including 77,373 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Same store revenues $ 716,665 $ 708,665 $ 704,606 $ 700,114 $ 688,303 Same store expenses 231,905 217,880 223,739 219,571 228,961 Same store NOI $ 484,760 $ 490,785 $ 480,867 $ 480,543 $ 459,342 Equity Residential Same Store Residential Accounts Receivable Balances Including 77,373 Same Store Apartment Units ($ in thousands) Balance Sheet (Other assets): March 31, 2024 December 31, 2023 March 31, 2023 Residential accounts receivable balances $ 18,290 $ 21,021 $ 32,210 Allowance for doubtful accounts (13,204 ) (15,485 ) (28,237 ) Net receivable balances $ 5,086 $ 5,536 $ 3,973 Straight-line receivable balances $ 8,337 (1) $ 8,461 $ 5,702 (1) Total same store Residential Leasing Concessions granted in the first quarter of 2024 were approximately $5.0 million. The straight-line receivable balance of $8.3 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in the remainder of 2024 and the first quarter of 2025. Same Store Residential Bad Debt Including 77,373 Same Store Apartment Units ($ in thousands) Income Statement (Rental income): Q1 2024 Q4 2023 Q1 2023 Bad debts before governmental rental assistance $ 9,187 $ 9,325 $ 11,896 Governmental rental assistance received (379 ) (379 ) (1,161 ) Bad Debt, Net $ 8,808 $ 8,946 $ 10,735 Bad Debt, Net as a % of Same Store Residential Revenues 1.3 % 1.3 % 1.6 % Equity Residential First Quarter 2024 vs. First Quarter 2023 Same Store Residential Results/Statistics by Market Increase (Decrease) from Prior Year's Quarter Markets/Metro Areas Apartment Units Q1 2024 % of Actual NOI Q1 2024 Average Rental Rate Q1 2024 Weighted Average Physical Occupancy % Q1 2024 Turnover Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Los Angeles 14,135 17.5 % $ 2,922 95.5 % 9.6 % 5.2 % 1.5 % 7.0 % 5.2 % 0.0 % (0.4 %) Orange County 3,718 5.2 % 2,900 96.1 % 7.4 % 5.9 % 3.5 % 6.6 % 5.9 % (0.1 %) (0.1 %) San Diego 2,878 4.3 % 3,103 96.1 % 8.0 % 6.5 % 1.1 % 8.2 % 5.7 % 0.7 % (1.7 %) Subtotal – Southern California 20,731 27.0 % 2,943 95.7 % 9.0 % 5.5 % 1.7 % 7.1 % 5.4 % 0.1 % (0.5 %) Washington, D.C. 14,716 16.9 % 2,665 97.1 % 7.0 % 5.5 % (1.9 %) 9.4 % 5.0 % 0.5 % (0.4 %) San Francisco 11,345 15.8 % 3,281 96.4 % 9.5 % 2.0 % 2.3 % 1.9 % 1.2 % 0.7 % 0.1 % New York 8,536 14.1 % 4,592 97.0 % 6.5 % 3.9 % 3.2 % 4.5 % 3.7 % 0.2 % (1.0 %) Boston 7,077 11.0 % 3,557 95.7 % 7.4 % 4.8 % (2.2 %) 8.0 % 4.6 % 0.2 % (0.6 %) Seattle 9,266 10.4 % 2,569 96.1 % 9.7 % 0.4 % 5.0 % (1.4 %) (0.6 %) 1.0 % (1.4 %) Denver 2,505 2.6 % 2,415 96.3 % 10.1 % 1.3 % (0.5 %) 2.1 % 1.6 % 0.0 % (1.0 %) Other Expansion Markets 3,197 2.2 % 1,973 95.5 % 13.3 % 0.9 % (4.2 %) 5.3 % 0.1 % 0.6 % 0.9 % Total 77,373 100.0 % $ 3,077 96.3 % 8.6 % 3.9 % 1.2 % 5.2 % 3.4 % 0.4 % (0.5 %) Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.0% of total revenues for the quarter ended March 31, 2024. Equity Residential First Quarter 2024 vs. Fourth Quarter 2023 Same Store Residential Results/Statistics by Market Increase (Decrease) from Prior Quarter Markets/Metro Areas Apartment Units Q1 2024 % of Actual NOI Q1 2024 Average Rental Rate Q1 2024 Weighted Average Physical Occupancy % Q1 2024 Turnover Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Los Angeles 14,135 17.3 % $ 2,922 95.5 % 9.6 % 0.9 % 8.0 % (2.2 %) 0.4 % 0.4 % (1.3 %) Orange County 3,718 5.2 % 2,900 96.1 % 7.4 % 0.2 % 5.4 % (1.2 %) 0.3 % (0.2 %) (1.3 %) San Diego 2,878 4.3 % 3,103 96.1 % 8.0 % 0.7 % 4.7 % (0.4 %) (0.2 %) 0.8 % (3.3 %) Subtotal – Southern California 20,731 26.8 % 2,943 95.7 % 9.0 % 0.7 % 7.3 % (1.7 %) 0.3 % 0.4 % (1.6 %) Washington, D.C. 14,716 16.8 % 2,665 97.1 % 7.0 % 0.6 % 4.8 % (1.3 %) 0.4 % 0.1 % (1.2 %) San Francisco 11,345 15.7 % 3,281 96.4 % 9.5 % 0.6 % 8.2 % (2.7 %) (0.6 %) 1.1 % (1.4 %) New York 8,536 14.0 % 4,592 97.0 % 6.5 % 1.0 % 6.7 % (2.8 %) 0.6 % 0.4 % (0.4 %) Boston 7,077 11.0 % 3,557 95.7 % 7.4 % (0.4 %) 3.3 % (1.9 %) (0.3 %) (0.1 %) (1.2 %) Seattle 9,266 10.4 % 2,569 96.1 % 9.7 % 1.2 % 8.3 % (1.5 %) 0.3 % 0.8 % 1.5 % Denver 2,792 2.9 % 2,409 96.2 % 10.5 % 0.1 % 6.6 % (2.5 %) (0.1 %) 0.2 % (1.3 %) Other Expansion Markets 3,487 2.4 % 1,979 95.3 % 13.3 % (1.1 %) 6.9 % (6.4 %) (1.5 %) 0.5 % 0.5 % Total 77,950 100.0 % $ 3,070 96.3 % 8.6 % 0.6 % 6.5 % (2.1 %) 0.1 % 0.5 % (0.9 %) Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.0% of total revenues for the quarter ended March 31, 2024. Equity Residential Same Store Residential Net Effective Lease Pricing Statistics For 77,373 Same Store Apartment Units New Lease Change (1) Renewal Rate Achieved (1) Blended Rate (1) Markets/Metro Areas Q1 2024 Q4 2023 Q1 2024 Q4 2023 Q1 2024 Q4 2023 Southern California (3.6 %) (3.1 %) 4.4 % 5.2 % 0.5 % 1.2 % San Francisco (1.2 %) (9.7 %) 4.1 % 4.4 % 1.6 % (3.1 %) Washington, D.C. 1.6 % 0.6 % 5.8 % 6.2 % 4.0 % 3.8 % New York (1.1 %) (2.2 %) 4.1 % 4.5 % 2.2 % 2.1 % Seattle (1.2 %) (8.4 %) 6.1 % 5.6 % 2.8 % (1.4 %) Boston (3.4 %) (1.0 %) 5.2 % 5.3 % 1.0 % 2.8 % Denver (6.3 %) (5.1 %) 4.3 % 4.7 % (2.0 %) (0.3 %) Other Expansion Markets (8.7 %) (12.2 %) 4.1 % 4.8 % (3.7 %) (5.1 %) Total (2.2 %) (4.6 %) 4.7 % 5.1 % 1.6 % 0.7 % (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions. See page 3 for April 2024 preliminary data. Equity Residential First Quarter 2024 vs. First Quarter 2023 Total Same Store Operating Expenses Including 77,373 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands) Q1 2024 Q1 2023 $ Change (1) % Change % of Q1 2024 Operating Expenses Real estate taxes $ 94,205 $ 90,844 $ 3,361 3.7 % 40.6 % On-site payroll 43,119 42,813 306 0.7 % 18.6 % Utilities 37,234 39,197 (1,963 ) (5.0 %) 16.1 % Repairs and maintenance 29,888 30,546 (658 ) (2.2 %) 12.9 % Insurance 9,341 8,459 882 10.4 % 4.0 % Leasing and advertising 2,375 2,591 (216 ) (8.3 %) 1.0 % Other on-site operating expenses 15,743 14,511 1,232 8.5 % 6.8 % Total Same Store Operating Expenses (2) $ 231,905 $ 228,961 $ 2,944 1.3 % 100.0 % (1) The quarter-over-quarter changes were primarily driven by the following factors: Real estate taxes – Increase due to escalation in rates and assessed values including an approximately 1.0% contribution to growth from 421-a tax abatement burnoffs in New York City. Once the burnoffs are completed, previously rent-restricted apartment units will transition to market. On-site payroll – Modest increase due primarily to higher wages partially offset by the impact of various innovation initiatives. Utilities – Decrease from electric primarily driven by lower commodity prices. Repairs and maintenance – Decrease due primarily to lower resident Turnover compared to the same period of 2023, moderation of previous wage/staffing pressures and a benefit from a relatively easy comparable period. Insurance – Increase due to higher premiums on property insurance renewal due to conditions in the insurance market that while less difficult than recent years, remain challenging. Other on-site operating expenses – Increase primarily driven by higher property-related legal expenses. (2) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. Equity Residential Debt Summary as of March 31, 2024 ($ in thousands) Debt Balances (1) % of Total Weighted Average Rates (1) Weighted Average Maturities (years) Secured $ 1,633,870 22.7 % 3.84 % 7.6 Unsecured 5,575,859 77.3 % 3.65 % 8.2 Total $ 7,209,729 100.0 % 3.69 % 8.1 Fixed Rate Debt: Secured – Conventional $ 1,399,221 19.4 % 3.89 % 7.1 Unsecured – Public 5,349,938 74.2 % 3.53 % 8.6 Fixed Rate Debt 6,749,159 93.6 % 3.60 % 8.3 Floating Rate Debt: Secured – Tax Exempt 234,649 3.3 % 3.49 % 10.4 Unsecured – Revolving Credit Facility — — — 3.6 Unsecured – Commercial Paper Program (2) 225,921 3.1 % 5.60 % — Floating Rate Debt 460,570 6.4 % 4.72 % 5.4 Total $ 7,209,729 100.0 % 3.69 % 8.1 (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. (2) At March 31, 2024, the weighted average maturity of commercial paper outstanding was 3 days. The weighted average amount outstanding for the quarter ended March 31, 2024 was approximately $333.1 million. Note: The Company capitalized interest of approximately $3.1 million and $3.4 million during the quarters ended March 31, 2024 and 2023, respectively. Equity Residential Debt Maturity Schedule as of March 31, 2024 ($ in thousands) Year Fixed Rate Floating Rate Total % of Total Weighted Average Coupons on Fixed Rate Debt (1) Weighted Average Coupons on Total Debt (1) 2024 $ — $ 232,200 (2) $ 232,200 3.2 % — 5.46 % 2025 450,000 8,100 458,100 6.3 % 3.38 % 3.38 % 2026 592,025 9,000 601,025 8.3 % 3.58 % 3.58 % 2027 400,000 9,800 409,800 5.6 % 3.25 % 3.26 % 2028 900,000 10,700 910,700 12.5 % 3.79 % 3.79 % 2029 888,120 11,500 899,620 12.4 % 3.30 % 3.31 % 2030 1,148,462 12,700 1,161,162 15.9 % 2.53 % 2.54 % 2031 528,500 39,800 568,300 7.8 % 1.94 % 2.05 % 2032 — 28,000 28,000 0.4 % — 3.70 % 2033 550,000 2,300 552,300 7.6 % 5.22 % 5.22 % 2034+ 1,350,850 108,600 1,459,450 20.0 % 4.39 % 4.27 % Subtotal 6,807,957 472,700 7,280,657 100.0 % 3.53 % 3.58 % Deferred Financing Costs and Unamortized (Discount) (58,798 ) (12,130 ) (70,928 ) N/A N/A N/A Total $ 6,749,159 $ 460,570 $ 7,209,729 100.0 % 3.53 % 3.58 % (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. (2) Includes $226.0 million in principal outstanding on the Company's Commercial Paper Program. Equity Residential Selected Unsecured Public Debt Covenants March 31, December 31, 2024 2023 Debt to Adjusted Total Assets (not to exceed 60%) 25.8% 26.5% 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) 6.41 6.19 Total Unencumbered Assets to Unsecured Debt (must be at least 125%) 528.1% 510.7% 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 March 31, December 31, 2024 2023 Total debt to Normalized EBITDAre 4.01x 4.17x Net debt to Normalized EBITDAre 3.97x 4.12x Unencumbered NOI as a % of total NOI 89.6% 89.8% Note: See Normalized EBITDAre Reconciliations for detail. Equity Residential Capital Structure as of March 31, 2024 (Amounts in thousands except for share/unit and per share amounts) Secured Debt $ 1,633,870 22.7 % Unsecured Debt 5,575,859 77.3 % Total Debt 7,209,729 100.0 % 22.6 % Common Shares (includes Restricted Shares) 378,939,751 97.0 % Units (includes OP Units and Restricted Units) 11,732,622 3.0 % Total Shares and Units 390,672,373 100.0 % Common Share Price at March 31, 2024 $ 63.11 24,655,333 99.9 % Perpetual Preferred Equity (see below) 17,155 0.1 % Total Equity 24,672,488 100.0 % 77.4 % Total Market Capitalization $ 31,882,217 100.0 % Perpetual Preferred Equity as of March 31, 2024 (Amounts in thousands except for share and per share amounts) Series Call Date Outstanding Shares Liquidation Value Annual Dividend Per Share Annual Dividend Amount Preferred Shares: 8.29% Series K (1) 12/10/26 343,100 $ 17,155 $ 4.145 $ 1,422 (1) During the first quarter of 2024, the Company repurchased and retired 402,500 Series K Preferred Shares with a liquidation value of $20.1 million for total cash consideration of approximately $21.8 million. As a result of this partial redemption, the Company incurred a cash charge of approximately $1.4 million which was recorded as a premium on the redemption of preferred shares, which impacted EPS and FFO per share but did not impact Normalized FFO per share. Equity Residential Common Share and Unit Weighted Average Amounts Outstanding Q1 2024 Q1 2023 Weighted Average Amounts Outstanding for Net Income Purposes: Common Shares - basic 378,811,922 378,340,876 Shares issuable from assumed conversion/vesting of: - OP Units 10,669,346 11,509,669 - long-term compensation shares/units 1,079,917 813,581 Total Common Shares and Units - diluted 390,561,185 390,664,126 Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes: Common Shares - basic 378,811,922 378,340,876 OP Units - basic 10,669,346 11,509,669 Total Common Shares and OP Units - basic 389,481,268 389,850,545 Shares issuable from assumed conversion/vesting of: - long-term compensation shares/units 1,079,917 813,581 Total Common Shares and Units - diluted 390,561,185 390,664,126 Period Ending Amounts Outstanding: Common Shares (includes Restricted Shares) 378,939,751 378,898,221 Units (includes OP Units and Restricted Units) 11,732,622 12,515,083 Total Shares and Units 390,672,373 391,413,304 Equity Residential Development and Lease-Up Projects as of March 31, 2024 (Amounts in thousands except for project and apartment unit amounts) Estimated/Actual Projects Location Ownership Percentage No. of Apartment Units Total Budgeted Capital Cost Total Book Value to Date Total Debt (1) Percentage Completed Start Date Initial Occupancy Completion Date Stabilization Date Percentage Leased / Occupied CONSOLIDATED: Projects Under Development: Laguna Clara II Santa Clara, CA 100% 225 $ 152,621 $ 91,314 $ — 63% Q2 2022 Q4 2024 Q1 2025 Q4 2025 – / – The Basin Wakefield, MA 95% 440 232,172 64,415 — 11% Q1 2024 Q4 2025 Q3 2026 Q2 2027 – / – Projects Under Development - Consolidated 665 384,793 155,729 — Projects Completed Not Stabilized: Reverb (fka 9th and W) (2) Washington, D.C. 92% 312 108,027 104,795 — 100% Q3 2021 Q2 2023 Q2 2023 Q3 2024 96% / 93% Projects Completed Not Stabilized - Consolidated 312 108,027 104,795 — UNCONSOLIDATED: Projects Under Development: Alloy Sunnyside Denver, CO 80% 209 70,004 64,752 28,682 95% Q3 2021 Q2 2024 Q2 2024 Q1 2025 – / – Alexan Harrison Harrison, NY 62% 450 200,664 184,242 88,605 95% Q3 2021 Q1 2024 Q4 2024 Q2 2026 9% / 2% Solana Beeler Park Denver, CO 90% 270 85,206 63,617 28,342 74% Q4 2021 Q2 2024 Q3 2024 Q1 2025 – / – Remy (Toll) Frisco, TX 75% 357 98,937 85,096 39,336 86% Q1 2022 Q2 2024 Q4 2024 Q3 2025 7% / – Sadie (fka Settler) (Toll) Fort Worth, TX 75% 362 82,775 63,612 22,058 82% Q2 2022 Q2 2024 Q3 2024 Q3 2025 2% / – Lyle (Toll) (2) Dallas, TX 75% 334 86,332 66,296 26,390 84% Q3 2022 Q1 2024 Q3 2024 Q1 2026 5% / 2% Projects Under Development - Unconsolidated 1,982 623,918 527,615 233,413 Total Development Projects - Consolidated 977 492,820 260,524 — Total Development Projects - Unconsolidated 1,982 623,918 527,615 233,413 Total Development Projects 2,959 $ 1,116,738 $ 788,139 $ 233,413 NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS Total Budgeted Capital Cost Q1 2024 NOI Projects Under Development - Consolidated $ 384,793 $ — Projects Completed Not Stabilized - Consolidated 108,027 1,019 Projects Under Development - Unconsolidated 623,918 (235 ) $ 1,116,738 $ 784 (1) All unconsolidated 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. Equity Residential Capital Expenditures to Real Estate For the Quarter Ended March 31, 2024 (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 77,373 2,315 79,688 Building Improvements $ 28,741 $ 3,340 (2) $ 32,081 $ 371 Renovation Expenditures 22,280 (1) 4,055 (2) 26,335 288 Replacements 15,050 54 15,104 195 Capital Expenditures to Real Estate (3) $ 66,071 $ 7,449 $ 73,520 $ 854 (1) Renovation Expenditures on 690 same store apartment units for the quarter ended March 31, 2024 approximated $32,289 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 $29.3 million of the Company's Capital Expenditures to Real Estate for Same Store Properties for the quarter ended March 31, 2024 were NOI-Enhancing, including the $22.3 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 2024 2023 March 31, 2024 December 31, 2023 Q1 Q4 Q3 Q2 Q1 Net income $ 953,449 $ 868,488 $ 305,032 $ 322,269 $ 181,286 $ 144,862 $ 220,071 Interest expense incurred, net 270,367 269,556 67,212 68,674 68,891 65,590 66,401 Amortization of deferred financing costs 8,880 8,941 1,918 1,918 3,027 2,017 1,979 Amortization of above/below market lease intangibles 4,464 4,464 1,116 1,116 1,116 1,116 1,116 Depreciation 898,574 888,709 225,695 226,788 224,736 221,355 215,830 Income and other tax expense (benefit) 1,154 1,148 304 256 258 336 298 EBITDA 2,136,888 2,041,306 601,277 621,021 479,314 435,276 505,695 Net (gain) loss on sales of real estate properties (370,515 ) (282,539 ) (188,185 ) (155,505 ) (26,912 ) 87 (100,209 ) EBITDAre 1,766,373 1,758,767 413,092 465,516 452,402 435,363 405,486 Write-off of pursuit costs (other expenses) 2,863 3,647 548 908 746 661 1,332 (Income) loss from investments in unconsolidated entities - operations 5,694 5,378 1,698 1,531 1,242 1,223 1,382 Realized (gain) loss on investment securities (interest and other income) (1,591 ) (1,504 ) — 7 (1,598 ) — 87 Unrealized (gain) loss on investment securities (interest and other income) (20,527 ) (13,466 ) (7,061 ) (9,005 ) (4,461 ) — — Insurance/litigation settlement or reserve income (interest and other income) (360 ) (1,055 ) (105 ) — (62 ) (193 ) (800 ) Insurance/litigation/environmental settlement or reserve expense (other expenses) 42,789 17,310 30,478 5,694 3,104 3,513 4,999 Advocacy contributions (other expenses) 2,276 2,142 141 1,665 150 320 7 Data transformation project (other expenses) 1,700 3,780 — — 295 1,405 2,080 Other (518 ) (589 ) 77 (602 ) 1 6 6 Normalized EBITDAre $ 1,798,699 $ 1,774,410 $ 438,868 $ 465,714 $ 451,819 $ 442,298 $ 414,579 Balance Sheet Items: March 31, 2024 December 31, 2023 Total debt $ 7,209,729 $ 7,390,450 Cash and cash equivalents (44,535 ) (50,743 ) Mortgage principal reserves/sinking funds (31,203 ) (29,270 ) Net debt $ 7,133,991 $ 7,310,437 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) Quarter Ended March 31, 2024 2023 Variance Impairment – non-operating real estate assets $ — $ — $ — Write-off of pursuit costs (other expenses) 548 1,332 (784 ) Premium on redemption of Preferred Shares 1,444 — 1,444 Debt extinguishment and preferred share redemption (gains) losses 1,444 — 1,444 (Income) loss from investments in unconsolidated entities ─ non-operating assets 955 627 328 Realized (gain) loss on investment securities (interest and other income) — 87 (87 ) Unrealized (gain) loss on investment securities (interest and other income) (7,061 ) — (7,061 ) Non-operating asset (gains) losses (6,106 ) 714 (6,820 ) Insurance/litigation settlement or reserve income (interest and other income) (105 ) (800 ) 695 Insurance/litigation/environmental settlement or reserve expense (other expenses) (1) 30,478 4,999 25,479 Advocacy contributions (other expenses) 141 7 134 Data transformation project (other expenses) — 2,080 (2,080 ) Other 77 6 71 Other miscellaneous items 30,591 6,292 24,299 Adjustments from FFO to Normalized FFO $ 26,477 $ 8,338 $ 18,139 (1) Insurance/litigation/environmental settlement or reserve expense includes adjustments to reserves relating to, among other things, litigation in California regarding the amount of late fees charged by the Company. 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. Q2 2024 Full Year 2024 (no change from previous Full Year 2024) 2024 Normalized FFO Guidance (per share diluted) Expected Normalized FFO Per Share $0.92 to $0.96 $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) During 2024, 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 0.715%), 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: March 31, 2024 Unsecured revolving credit facility commitment $ 2,500,000 Commercial paper balance outstanding (226,000 ) Unsecured revolving credit facility balance outstanding — Other restricted amounts (3,438 ) Unsecured revolving credit facility availability $ 2,270,562 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): Quarter Ended March 31, 2024 Net Gain (Loss) on Sales of Real Estate Properties $ 188,185 Accumulated Depreciation Gain (58,020 ) Economic Gain (Loss) $ 130,165 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 Q1 2024 Q1 2023 Q2 2024 2024 Per Share Per Share Per Share Per Share EPS – Diluted $ 0.77 $ 0.56 $0.45 to $0.49 $2.91 to $3.01 Depreciation expense 0.58 0.55 0.56 2.25 Net (gain) loss on sales (0.48 ) (0.26 ) (0.10 ) (1.42 ) Impairment – operating real estate assets — — — — FFO per share – Diluted 0.87 0.85 0.91 to 0.95 3.74 to 3.84 Impairment – non-operating real estate assets — — — — Write-off of pursuit costs — — — 0.01 Debt extinguishment and preferred share redemption (gains) losses — — — — Non-operating asset (gains) losses (0.02 ) — — 0.01 Other miscellaneous items 0.08 0.02 0.01 0.04 Normalized FFO per share – Diluted $ 0.93 $ 0.87 $0.92 to $0.96 $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 net 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 and further allocated between Residential same store and Non-Residential same store results (see Same Store Results): Quarter Ended March 31, 2024 2023 Net income $ 305,032 $ 220,071 Adjustments: Property management 35,458 31,466 General and administrative 15,720 16,165 Depreciation 225,695 215,830 Net (gain) loss on sales of real estate properties (188,185 ) (100,209 ) Interest and other income (9,329 ) (1,538 ) Other expenses 31,738 8,995 Interest: Expense incurred, net 67,212 66,401 Amortization of deferred financing costs 1,918 1,979 Income and other tax expense (benefit) 304 298 (Income) loss from investments in unconsolidated entities 1,698 1,382 Total NOI $ 487,261 $ 460,840 Quarter Ended March 31, Rental income: 2024 2023 Residential same store $ 687,139 $ 661,626 Non-Residential same store 29,526 26,677 Total same store 716,665 688,303 Non-same store/other 14,153 16,785 Total rental income 730,818 705,088 Operating expenses: Residential same store 224,419 221,848 Non-Residential same store 7,486 7,113 Total same store 231,905 228,961 Non-same store/other 11,652 15,287 Total operating expenses 243,557 244,248 NOI: Residential same store 462,720 439,778 Non-Residential same store 22,040 19,564 Total same store 484,760 459,342 Non-same store/other 2,501 1,498 Total NOI $ 487,261 $ 460,840 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 2023 and 2024, plus any properties in lease-up and not stabilized as of January 1, 2023. Unless otherwise noted, includes both Residential and Non-Residential operations for these properties. 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, 2023, less properties subsequently sold. Properties are included in Same Store when they are stabilized for all of the current and comparable periods presented. Unless otherwise noted, includes both Residential and Non-Residential operations for these properties. Same Store Residential Revenues – Revenues from our Residential Same Store Properties only 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 March 31, 2024. 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 quarter ended March 31, 2024 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/20240423724317/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 First Quarter 2024 Results By: Equity Residential via Business Wire April 23, 2024 at 16:15 PM EDT Same Store Results Ahead of Expectations Equity Residential (NYSE: EQR) today reported results for the quarter ended March 31, 2024. First Quarter 2024 Results All per share results are reported as available to common shares/units on a diluted basis. Quarter Ended March 31, 2024 2023 $ Change % Change Earnings Per Share (EPS) $ 0.77 $ 0.56 $ 0.21 37.5 % Funds from Operations (FFO) per share $ 0.87 $ 0.85 $ 0.02 2.4 % Normalized FFO (NFFO) per share $ 0.93 $ 0.87 $ 0.06 6.9 % Recent Highlights Same store revenue increased 4.1% for the first quarter of 2024 compared to the first quarter of 2023, driven by healthy demand and modest supply across most of our markets. Same store expense increased 1.3% with low or negative growth in our primary expense categories. The Company's continued focus on expense efficiency has delivered a five-year compounded annual growth rate of same store expenses of 3.1%. Same store Net Operating Income (NOI) increased 5.5%. Our focus on same store revenue growth, same store expense and corporate overhead efficiency and limited exposure to higher interest rates led to strong growth. Our high quality customer experience along with the overall desirability of our locations has led to the lowest quarterly same store Turnover in our history of 8.6%. During the first quarter of 2024, the Company sold three properties - one in Boston, one in Orange County and one in San Francisco - consisting of 504 apartment units, for an aggregate sale price of approximately $248.5 million. During the first quarter of 2024, the Company repurchased and retired 652,452 of its common shares, at a weighted average purchase price of $58.95 per share, for an aggregate purchased amount of approximately $38.5 million. “Our operating business performed very well this quarter positioning us favorably as we enter our primary leasing season,” said Mark J. Parrell, Equity Residential’s President and CEO. “The positive demand dynamics in our affluent renter demographic, limited new apartment supply in our existing predominantly coastal markets and our laser focus on expense management continue to produce good results.” Results Per Share The change in EPS for the quarter ended March 31, 2024 compared to the same period of 2023 is due primarily to higher property sale gains, the various adjustment items listed on page 25 of this release and the items described below. The per share change in FFO for the quarter ended March 31, 2024 compared to the same period of 2023 is due primarily to the various adjustment items listed on page 25 of this release and the items described below. The per share change in Normalized FFO is due primarily to: Positive/(Negative) Impact First Quarter 2024 vs. First Quarter 2023 Same store NOI $ 0.07 2024 and 2023 transaction activity impact on NOI, net (0.01 ) Corporate overhead (1) (0.01 ) Other items 0.01 Net $ 0.06 (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 27 through 33 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 6, 29 and 30 of this release. Same Store Results The following table shows the total same store results for the periods presented (includes Residential and Non-Residential). First Quarter 2024 vs. First Quarter 2023 First Quarter 2024 vs. Fourth Quarter 2023 Apartment Units 77,373 77,950 Physical Occupancy 96.3% vs. 95.9% 96.3% vs. 95.8% Revenues (1) 4.1% 1.1% Expenses 1.3% 6.5% NOI 5.5% (1.3%) (1) See page 10 for further discussion. 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. First Quarter 2024 vs. First Quarter 2023 First Quarter 2024 vs. Fourth Quarter 2023 % Change % Change Same Store Residential Revenues- comparable period Lease rates 2.9 % 0.1 % Leasing Concessions (0.3 %) 0.0 % Vacancy gain (loss) 0.4 % 0.6 % Bad Debt, Net (1) 0.3 % 0.0 % Other (2) 0.6 % (0.1 %) Same Store Residential Revenues- current period 3.9 % 0.6 % (1) Change in rental income due to bad debt write-offs and reserves, net of amounts (including governmental rental assistance payments) collected on previously written-off or reserved accounts. See page 12 for more detail. (2) Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items. See page 11 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 77,373 same store apartment units): April 2024 (1) Q1 2024 Q4 2023 Physical Occupancy 96.4% 96.3% 95.8% Percentage of Residents Renewing by quarter/month 61.0% 61.1% 59.1% New Lease Change 0.1% (2.2%) (4.6%) Renewal Rate Achieved 5.1% 4.7% 5.1% Blended Rate 3.1% 1.6% 0.7% (1) April 2024 results are preliminary as of April 18th. Investment Activity The Company did not acquire any operating properties during the first quarter of 2024. During the first quarter of 2024, the Company sold three properties - one in Boston, one in Orange County and one in suburban San Francisco - consisting of 504 apartment units, for an aggregate sale price of approximately $248.5 million at a weighted average Disposition Yield of 5.5%, generating an Unlevered IRR of 13.1%. The average age of the properties sold in the first quarter of 2024 was approximately 40 years. During the first quarter of 2024, the Company began construction on The Basin, a 440 apartment unit property located in suburban Boston with a Total Budgeted Capital Cost of $232.2 million. Capital Markets Activity During the first quarter of 2024, the Company repurchased and retired 652,452 of its common shares, at a weighted average purchase price of $58.95 per share, for an aggregate purchased amount of approximately $38.5 million. Combined with the Company’s fourth quarter 2023 repurchase activity, the Company has repurchased approximately $87.5 million of its common shares at a weighted average purchase price of $57.72 per share. Second Quarter 2024 Guidance At this time the Company is not revising its annual operating, EPS, FFO per share or Normalized FFO per share guidance provided as part of its fourth quarter 2023 earnings release. See page 26. The Company has established guidance ranges for the second quarter of 2024 EPS, FFO per share and Normalized FFO per share as listed below: Q2 2024 Guidance EPS $0.45 to $0.49 FFO per share $0.91 to $0.95 Normalized FFO per share $0.92 to $0.96 The difference between the first quarter of 2024 actual EPS of $0.77 and the second quarter of 2024 EPS guidance midpoint of $0.47 is due primarily to higher expected same store NOI, lower expected property sale gains and lower expected other expenses. The difference between the first quarter of 2024 actual FFO of $0.87 per share and the second quarter of 2024 FFO guidance midpoint of $0.93 per share is due primarily to higher expected same store NOI and lower expected other expenses. The difference between the first quarter of 2024 actual Normalized FFO of $0.93 per share and the second quarter of 2024 Normalized FFO guidance midpoint of $0.94 per share is due primarily to higher expected same store NOI. About Equity Residential Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. Equity Residential owns or has investments in 299 properties consisting of 79,688 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, April 24, 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) Quarter Ended March 31, 2024 2023 REVENUES Rental income $ 730,818 $ 705,088 EXPENSES Property and maintenance 134,630 137,579 Real estate taxes and insurance 108,927 106,669 Property management 35,458 31,466 General and administrative 15,720 16,165 Depreciation 225,695 215,830 Total expenses 520,430 507,709 Net gain (loss) on sales of real estate properties 188,185 100,209 Interest and other income 9,329 1,538 Other expenses (31,738 ) (8,995 ) Interest: Expense incurred, net (67,212 ) (66,401 ) Amortization of deferred financing costs (1,918 ) (1,979 ) Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of land parcels 307,034 221,751 Income and other tax (expense) benefit (304 ) (298 ) Income (loss) from investments in unconsolidated entities (1,698 ) (1,382 ) Net income 305,032 220,071 Net (income) loss attributable to Noncontrolling Interests: Operating Partnership (8,275 ) (7,059 ) Partially Owned Properties (970 ) (977 ) Net income attributable to controlling interests 295,787 212,035 Preferred distributions (547 ) (772 ) Premium on redemption of Preferred Shares (1,444 ) — Net income available to Common Shares $ 293,796 $ 211,263 Earnings per share – basic: Net income available to Common Shares $ 0.78 $ 0.56 Weighted average Common Shares outstanding 378,812 378,341 Earnings per share – diluted: Net income available to Common Shares $ 0.77 $ 0.56 Weighted average Common Shares outstanding 390,561 390,664 Distributions declared per Common Share outstanding $ 0.675 $ 0.6625 Equity Residential Consolidated Statements of Funds From Operations and Normalized Funds From Operations (Amounts in thousands except per share and Unit data) (Unaudited) Quarter Ended March 31, 2024 2023 Net income $ 305,032 $ 220,071 Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties (970 ) (977 ) Preferred distributions (547 ) (772 ) Premium on redemption of Preferred Shares (1,444 ) — Net income available to Common Shares and Units 302,071 218,322 Adjustments: Depreciation 225,695 215,830 Depreciation – Non-real estate additions (955 ) (1,156 ) Depreciation – Partially Owned Properties (542 ) (545 ) Depreciation – Unconsolidated Properties 335 632 Net (gain) loss on sales of real estate properties (188,185 ) (100,209 ) FFO available to Common Shares and Units 338,419 332,874 Adjustments (see note for additional detail): Write-off of pursuit costs 548 1,332 Debt extinguishment and preferred share redemption (gains) losses 1,444 — Non-operating asset (gains) losses (6,106 ) 714 Other miscellaneous items 30,591 6,292 Normalized FFO available to Common Shares and Units $ 364,896 $ 341,212 FFO $ 340,410 $ 333,646 Preferred distributions (547 ) (772 ) Premium on redemption of Preferred Shares (1,444 ) — FFO available to Common Shares and Units $ 338,419 $ 332,874 FFO per share and Unit – basic $ 0.87 $ 0.85 FFO per share and Unit – diluted $ 0.87 $ 0.85 Normalized FFO $ 365,443 $ 341,984 Preferred distributions (547 ) (772 ) Normalized FFO available to Common Shares and Units $ 364,896 $ 341,212 Normalized FFO per share and Unit – basic $ 0.94 $ 0.88 Normalized FFO per share and Unit – diluted $ 0.93 $ 0.87 Weighted average Common Shares and Units outstanding – basic 389,481 389,851 Weighted average Common Shares and Units outstanding – diluted 390,561 390,664 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) March 31, December 31, 2024 2023 ASSETS Land $ 5,550,882 $ 5,581,876 Depreciable property 22,930,036 22,938,426 Projects under development 155,729 78,036 Land held for development 64,466 114,300 Investment in real estate 28,701,113 28,712,638 Accumulated depreciation (9,978,012 ) (9,810,337 ) Investment in real estate, net 18,723,101 18,902,301 Investments in unconsolidated entities1 289,272 282,049 Cash and cash equivalents 44,535 50,743 Restricted deposits 152,025 89,252 Right-of-use assets 454,035 457,266 Other assets 231,829 252,953 Total assets $ 19,894,797 $ 20,034,564 LIABILITIES AND EQUITY Liabilities: Mortgage notes payable, net $ 1,633,870 $ 1,632,902 Notes, net 5,349,938 5,348,417 Line of credit and commercial paper 225,921 409,131 Accounts payable and accrued expenses 146,072 87,377 Accrued interest payable 49,190 65,716 Lease liabilities 310,422 311,640 Other liabilities 274,919 272,596 Security deposits 68,818 69,178 Distributions payable 263,615 259,231 Total liabilities 8,322,765 8,456,188 Commitments and contingencies Redeemable Noncontrolling Interests – Operating Partnership 298,219 289,248 Equity: Shareholders' equity: Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized; 343,100 shares issued and outstanding as of March 31, 2024 and 745,600 shares issued and outstanding as of December 31, 2023 17,155 37,280 Common Shares of beneficial interest, $0.01 par value; 1,000,000,000 shares authorized; 378,939,751 shares issued and outstanding as of March 31, 2024 and 379,291,417 shares issued and outstanding as of December 31, 2023 3,789 3,793 Paid in capital 9,603,743 9,601,866 Retained earnings 1,436,671 1,437,185 Accumulated other comprehensive income (loss) 6,314 5,704 Total shareholders’ equity 11,067,672 11,085,828 Noncontrolling Interests: Operating Partnership 207,272 202,306 Partially Owned Properties (1,131 ) 994 Total Noncontrolling Interests 206,141 203,300 Total equity 11,273,813 11,289,128 Total liabilities and equity $ 19,894,797 $ 20,034,564 1 Includes $227.3 million and $220.2 million in unconsolidated development projects as of March 31, 2024 and December 31, 2023, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects. Equity Residential Portfolio Summary As of March 31, 2024 % of Stabilized Average Apartment Budgeted Rental Markets/Metro Areas Properties Units NOI Rate Established Markets: Los Angeles 58 14,732 17.3 % $ 2,925 Orange County 12 3,718 5.0 % 2,900 San Diego 12 2,878 4.1 % 3,103 Subtotal – Southern California 82 21,328 26.4 % 2,945 Washington, D.C. 48 15,028 16.4 % 2,666 San Francisco 42 11,567 15.3 % 3,282 New York 34 8,536 14.2 % 4,592 Boston 26 7,077 11.7 % 3,557 Seattle 44 9,267 10.5 % 2,569 Subtotal – Established Markets 276 72,803 94.5 % 3,146 Expansion Markets: Denver 9 2,792 2.8 % 2,409 Atlanta 7 2,111 1.6 % 2,049 Dallas/Ft. Worth 4 1,241 0.7 % 1,905 Austin 3 741 0.4 % 1,842 Subtotal – Expansion Markets 23 6,885 5.5 % 2,148 Total 299 79,688 100.0 % $ 3,061 Properties Apartment Units Wholly Owned Properties 285 76,628 Partially Owned Properties – Consolidated 14 3,060 299 79,688 Note: Projects under development are not included in the Portfolio Summary until construction has been completed. Equity Residential Portfolio Rollforward Q1 2024 ($ in thousands) Properties Apartment Units Sales Price Disposition Yield 12/31/2023 302 80,191 Dispositions: Consolidated Rental Properties (3 ) (504 ) $ (248,500 ) (5.5 %) Configuration Changes — 1 3/31/2024 299 79,688 Equity Residential First Quarter 2024 vs. First Quarter 2023 Same Store Results/Statistics Including 77,373 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands except for Average Rental Rate) Results Statistics Description Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Q1 2024 $ 716,665 $ 231,905 $ 484,760 $ 3,077 96.3 % 8.6 % Q1 2023 $ 688,303 $ 228,961 $ 459,342 $ 2,975 95.9 % 9.1 % Change $ 28,362 $ 2,944 $ 25,418 $ 102 0.4 % (0.5 %) Change 4.1 % (1) 1.3 % 5.5 % 3.4 % First Quarter 2024 vs. Fourth Quarter 2023 Same Store Results/Statistics Including 77,950 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands except for Average Rental Rate) Results Statistics Description Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Q1 2024 $ 720,261 $ 233,087 $ 487,174 $ 3,070 96.3 % 8.6 % Q4 2023 $ 712,383 $ 218,881 $ 493,502 $ 3,067 95.8 % 9.5 % Change $ 7,878 $ 14,206 $ (6,328 ) $ 3 0.5 % (0.9 %) Change 1.1 % (1) 6.5 % (1.3 %) 0.1 % (1) Non-Residential contributed 0.20% and 0.50% to quarterly and sequential same store revenue growth, respectively, primarily due to improved collectibility expectations for certain Non-Residential tenants, resulting in the reinstatement of their respective straight-line receivable balances in the first quarter of 2024. The Company contemplated these contributions in its previous 2024 annual guidance. Equity Residential Same Store Residential Revenues – GAAP to Cash Basis (1) ($ in thousands) First Quarter 2024 vs. First Quarter 2023 First Quarter 2024 vs. Fourth Quarter 2023 77,373 Same Store Apartment Units 77,950 Same Store Apartment Units Q1 2024 Q1 2023 Q1 2024 Q4 2023 Same Store Residential Revenues (GAAP Basis) $ 687,139 $ 661,626 $ 690,735 $ 686,778 Leasing Concessions amortized 5,076 2,801 5,093 4,810 Leasing Concessions granted (2) (4,951 ) (4,167 ) (4,955 ) (5,392 ) Same Store Residential Revenues with Leasing Concessions on a cash basis $ 687,264 $ 660,260 $ 690,873 $ 686,196 % change - GAAP revenue 3.9 % 0.6 % % change - cash revenue 4.1 % 0.7 % (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail. (2) Concession usage is primarily concentrated in Los Angeles, San Francisco and Seattle. Same Store Net Operating Income By Quarter Including 77,373 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Same store revenues $ 716,665 $ 708,665 $ 704,606 $ 700,114 $ 688,303 Same store expenses 231,905 217,880 223,739 219,571 228,961 Same store NOI $ 484,760 $ 490,785 $ 480,867 $ 480,543 $ 459,342 Equity Residential Same Store Residential Accounts Receivable Balances Including 77,373 Same Store Apartment Units ($ in thousands) Balance Sheet (Other assets): March 31, 2024 December 31, 2023 March 31, 2023 Residential accounts receivable balances $ 18,290 $ 21,021 $ 32,210 Allowance for doubtful accounts (13,204 ) (15,485 ) (28,237 ) Net receivable balances $ 5,086 $ 5,536 $ 3,973 Straight-line receivable balances $ 8,337 (1) $ 8,461 $ 5,702 (1) Total same store Residential Leasing Concessions granted in the first quarter of 2024 were approximately $5.0 million. The straight-line receivable balance of $8.3 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in the remainder of 2024 and the first quarter of 2025. Same Store Residential Bad Debt Including 77,373 Same Store Apartment Units ($ in thousands) Income Statement (Rental income): Q1 2024 Q4 2023 Q1 2023 Bad debts before governmental rental assistance $ 9,187 $ 9,325 $ 11,896 Governmental rental assistance received (379 ) (379 ) (1,161 ) Bad Debt, Net $ 8,808 $ 8,946 $ 10,735 Bad Debt, Net as a % of Same Store Residential Revenues 1.3 % 1.3 % 1.6 % Equity Residential First Quarter 2024 vs. First Quarter 2023 Same Store Residential Results/Statistics by Market Increase (Decrease) from Prior Year's Quarter Markets/Metro Areas Apartment Units Q1 2024 % of Actual NOI Q1 2024 Average Rental Rate Q1 2024 Weighted Average Physical Occupancy % Q1 2024 Turnover Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Los Angeles 14,135 17.5 % $ 2,922 95.5 % 9.6 % 5.2 % 1.5 % 7.0 % 5.2 % 0.0 % (0.4 %) Orange County 3,718 5.2 % 2,900 96.1 % 7.4 % 5.9 % 3.5 % 6.6 % 5.9 % (0.1 %) (0.1 %) San Diego 2,878 4.3 % 3,103 96.1 % 8.0 % 6.5 % 1.1 % 8.2 % 5.7 % 0.7 % (1.7 %) Subtotal – Southern California 20,731 27.0 % 2,943 95.7 % 9.0 % 5.5 % 1.7 % 7.1 % 5.4 % 0.1 % (0.5 %) Washington, D.C. 14,716 16.9 % 2,665 97.1 % 7.0 % 5.5 % (1.9 %) 9.4 % 5.0 % 0.5 % (0.4 %) San Francisco 11,345 15.8 % 3,281 96.4 % 9.5 % 2.0 % 2.3 % 1.9 % 1.2 % 0.7 % 0.1 % New York 8,536 14.1 % 4,592 97.0 % 6.5 % 3.9 % 3.2 % 4.5 % 3.7 % 0.2 % (1.0 %) Boston 7,077 11.0 % 3,557 95.7 % 7.4 % 4.8 % (2.2 %) 8.0 % 4.6 % 0.2 % (0.6 %) Seattle 9,266 10.4 % 2,569 96.1 % 9.7 % 0.4 % 5.0 % (1.4 %) (0.6 %) 1.0 % (1.4 %) Denver 2,505 2.6 % 2,415 96.3 % 10.1 % 1.3 % (0.5 %) 2.1 % 1.6 % 0.0 % (1.0 %) Other Expansion Markets 3,197 2.2 % 1,973 95.5 % 13.3 % 0.9 % (4.2 %) 5.3 % 0.1 % 0.6 % 0.9 % Total 77,373 100.0 % $ 3,077 96.3 % 8.6 % 3.9 % 1.2 % 5.2 % 3.4 % 0.4 % (0.5 %) Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.0% of total revenues for the quarter ended March 31, 2024. Equity Residential First Quarter 2024 vs. Fourth Quarter 2023 Same Store Residential Results/Statistics by Market Increase (Decrease) from Prior Quarter Markets/Metro Areas Apartment Units Q1 2024 % of Actual NOI Q1 2024 Average Rental Rate Q1 2024 Weighted Average Physical Occupancy % Q1 2024 Turnover Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Los Angeles 14,135 17.3 % $ 2,922 95.5 % 9.6 % 0.9 % 8.0 % (2.2 %) 0.4 % 0.4 % (1.3 %) Orange County 3,718 5.2 % 2,900 96.1 % 7.4 % 0.2 % 5.4 % (1.2 %) 0.3 % (0.2 %) (1.3 %) San Diego 2,878 4.3 % 3,103 96.1 % 8.0 % 0.7 % 4.7 % (0.4 %) (0.2 %) 0.8 % (3.3 %) Subtotal – Southern California 20,731 26.8 % 2,943 95.7 % 9.0 % 0.7 % 7.3 % (1.7 %) 0.3 % 0.4 % (1.6 %) Washington, D.C. 14,716 16.8 % 2,665 97.1 % 7.0 % 0.6 % 4.8 % (1.3 %) 0.4 % 0.1 % (1.2 %) San Francisco 11,345 15.7 % 3,281 96.4 % 9.5 % 0.6 % 8.2 % (2.7 %) (0.6 %) 1.1 % (1.4 %) New York 8,536 14.0 % 4,592 97.0 % 6.5 % 1.0 % 6.7 % (2.8 %) 0.6 % 0.4 % (0.4 %) Boston 7,077 11.0 % 3,557 95.7 % 7.4 % (0.4 %) 3.3 % (1.9 %) (0.3 %) (0.1 %) (1.2 %) Seattle 9,266 10.4 % 2,569 96.1 % 9.7 % 1.2 % 8.3 % (1.5 %) 0.3 % 0.8 % 1.5 % Denver 2,792 2.9 % 2,409 96.2 % 10.5 % 0.1 % 6.6 % (2.5 %) (0.1 %) 0.2 % (1.3 %) Other Expansion Markets 3,487 2.4 % 1,979 95.3 % 13.3 % (1.1 %) 6.9 % (6.4 %) (1.5 %) 0.5 % 0.5 % Total 77,950 100.0 % $ 3,070 96.3 % 8.6 % 0.6 % 6.5 % (2.1 %) 0.1 % 0.5 % (0.9 %) Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.0% of total revenues for the quarter ended March 31, 2024. Equity Residential Same Store Residential Net Effective Lease Pricing Statistics For 77,373 Same Store Apartment Units New Lease Change (1) Renewal Rate Achieved (1) Blended Rate (1) Markets/Metro Areas Q1 2024 Q4 2023 Q1 2024 Q4 2023 Q1 2024 Q4 2023 Southern California (3.6 %) (3.1 %) 4.4 % 5.2 % 0.5 % 1.2 % San Francisco (1.2 %) (9.7 %) 4.1 % 4.4 % 1.6 % (3.1 %) Washington, D.C. 1.6 % 0.6 % 5.8 % 6.2 % 4.0 % 3.8 % New York (1.1 %) (2.2 %) 4.1 % 4.5 % 2.2 % 2.1 % Seattle (1.2 %) (8.4 %) 6.1 % 5.6 % 2.8 % (1.4 %) Boston (3.4 %) (1.0 %) 5.2 % 5.3 % 1.0 % 2.8 % Denver (6.3 %) (5.1 %) 4.3 % 4.7 % (2.0 %) (0.3 %) Other Expansion Markets (8.7 %) (12.2 %) 4.1 % 4.8 % (3.7 %) (5.1 %) Total (2.2 %) (4.6 %) 4.7 % 5.1 % 1.6 % 0.7 % (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions. See page 3 for April 2024 preliminary data. Equity Residential First Quarter 2024 vs. First Quarter 2023 Total Same Store Operating Expenses Including 77,373 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands) Q1 2024 Q1 2023 $ Change (1) % Change % of Q1 2024 Operating Expenses Real estate taxes $ 94,205 $ 90,844 $ 3,361 3.7 % 40.6 % On-site payroll 43,119 42,813 306 0.7 % 18.6 % Utilities 37,234 39,197 (1,963 ) (5.0 %) 16.1 % Repairs and maintenance 29,888 30,546 (658 ) (2.2 %) 12.9 % Insurance 9,341 8,459 882 10.4 % 4.0 % Leasing and advertising 2,375 2,591 (216 ) (8.3 %) 1.0 % Other on-site operating expenses 15,743 14,511 1,232 8.5 % 6.8 % Total Same Store Operating Expenses (2) $ 231,905 $ 228,961 $ 2,944 1.3 % 100.0 % (1) The quarter-over-quarter changes were primarily driven by the following factors: Real estate taxes – Increase due to escalation in rates and assessed values including an approximately 1.0% contribution to growth from 421-a tax abatement burnoffs in New York City. Once the burnoffs are completed, previously rent-restricted apartment units will transition to market. On-site payroll – Modest increase due primarily to higher wages partially offset by the impact of various innovation initiatives. Utilities – Decrease from electric primarily driven by lower commodity prices. Repairs and maintenance – Decrease due primarily to lower resident Turnover compared to the same period of 2023, moderation of previous wage/staffing pressures and a benefit from a relatively easy comparable period. Insurance – Increase due to higher premiums on property insurance renewal due to conditions in the insurance market that while less difficult than recent years, remain challenging. Other on-site operating expenses – Increase primarily driven by higher property-related legal expenses. (2) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. Equity Residential Debt Summary as of March 31, 2024 ($ in thousands) Debt Balances (1) % of Total Weighted Average Rates (1) Weighted Average Maturities (years) Secured $ 1,633,870 22.7 % 3.84 % 7.6 Unsecured 5,575,859 77.3 % 3.65 % 8.2 Total $ 7,209,729 100.0 % 3.69 % 8.1 Fixed Rate Debt: Secured – Conventional $ 1,399,221 19.4 % 3.89 % 7.1 Unsecured – Public 5,349,938 74.2 % 3.53 % 8.6 Fixed Rate Debt 6,749,159 93.6 % 3.60 % 8.3 Floating Rate Debt: Secured – Tax Exempt 234,649 3.3 % 3.49 % 10.4 Unsecured – Revolving Credit Facility — — — 3.6 Unsecured – Commercial Paper Program (2) 225,921 3.1 % 5.60 % — Floating Rate Debt 460,570 6.4 % 4.72 % 5.4 Total $ 7,209,729 100.0 % 3.69 % 8.1 (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. (2) At March 31, 2024, the weighted average maturity of commercial paper outstanding was 3 days. The weighted average amount outstanding for the quarter ended March 31, 2024 was approximately $333.1 million. Note: The Company capitalized interest of approximately $3.1 million and $3.4 million during the quarters ended March 31, 2024 and 2023, respectively. Equity Residential Debt Maturity Schedule as of March 31, 2024 ($ in thousands) Year Fixed Rate Floating Rate Total % of Total Weighted Average Coupons on Fixed Rate Debt (1) Weighted Average Coupons on Total Debt (1) 2024 $ — $ 232,200 (2) $ 232,200 3.2 % — 5.46 % 2025 450,000 8,100 458,100 6.3 % 3.38 % 3.38 % 2026 592,025 9,000 601,025 8.3 % 3.58 % 3.58 % 2027 400,000 9,800 409,800 5.6 % 3.25 % 3.26 % 2028 900,000 10,700 910,700 12.5 % 3.79 % 3.79 % 2029 888,120 11,500 899,620 12.4 % 3.30 % 3.31 % 2030 1,148,462 12,700 1,161,162 15.9 % 2.53 % 2.54 % 2031 528,500 39,800 568,300 7.8 % 1.94 % 2.05 % 2032 — 28,000 28,000 0.4 % — 3.70 % 2033 550,000 2,300 552,300 7.6 % 5.22 % 5.22 % 2034+ 1,350,850 108,600 1,459,450 20.0 % 4.39 % 4.27 % Subtotal 6,807,957 472,700 7,280,657 100.0 % 3.53 % 3.58 % Deferred Financing Costs and Unamortized (Discount) (58,798 ) (12,130 ) (70,928 ) N/A N/A N/A Total $ 6,749,159 $ 460,570 $ 7,209,729 100.0 % 3.53 % 3.58 % (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. (2) Includes $226.0 million in principal outstanding on the Company's Commercial Paper Program. Equity Residential Selected Unsecured Public Debt Covenants March 31, December 31, 2024 2023 Debt to Adjusted Total Assets (not to exceed 60%) 25.8% 26.5% 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) 6.41 6.19 Total Unencumbered Assets to Unsecured Debt (must be at least 125%) 528.1% 510.7% 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 March 31, December 31, 2024 2023 Total debt to Normalized EBITDAre 4.01x 4.17x Net debt to Normalized EBITDAre 3.97x 4.12x Unencumbered NOI as a % of total NOI 89.6% 89.8% Note: See Normalized EBITDAre Reconciliations for detail. Equity Residential Capital Structure as of March 31, 2024 (Amounts in thousands except for share/unit and per share amounts) Secured Debt $ 1,633,870 22.7 % Unsecured Debt 5,575,859 77.3 % Total Debt 7,209,729 100.0 % 22.6 % Common Shares (includes Restricted Shares) 378,939,751 97.0 % Units (includes OP Units and Restricted Units) 11,732,622 3.0 % Total Shares and Units 390,672,373 100.0 % Common Share Price at March 31, 2024 $ 63.11 24,655,333 99.9 % Perpetual Preferred Equity (see below) 17,155 0.1 % Total Equity 24,672,488 100.0 % 77.4 % Total Market Capitalization $ 31,882,217 100.0 % Perpetual Preferred Equity as of March 31, 2024 (Amounts in thousands except for share and per share amounts) Series Call Date Outstanding Shares Liquidation Value Annual Dividend Per Share Annual Dividend Amount Preferred Shares: 8.29% Series K (1) 12/10/26 343,100 $ 17,155 $ 4.145 $ 1,422 (1) During the first quarter of 2024, the Company repurchased and retired 402,500 Series K Preferred Shares with a liquidation value of $20.1 million for total cash consideration of approximately $21.8 million. As a result of this partial redemption, the Company incurred a cash charge of approximately $1.4 million which was recorded as a premium on the redemption of preferred shares, which impacted EPS and FFO per share but did not impact Normalized FFO per share. Equity Residential Common Share and Unit Weighted Average Amounts Outstanding Q1 2024 Q1 2023 Weighted Average Amounts Outstanding for Net Income Purposes: Common Shares - basic 378,811,922 378,340,876 Shares issuable from assumed conversion/vesting of: - OP Units 10,669,346 11,509,669 - long-term compensation shares/units 1,079,917 813,581 Total Common Shares and Units - diluted 390,561,185 390,664,126 Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes: Common Shares - basic 378,811,922 378,340,876 OP Units - basic 10,669,346 11,509,669 Total Common Shares and OP Units - basic 389,481,268 389,850,545 Shares issuable from assumed conversion/vesting of: - long-term compensation shares/units 1,079,917 813,581 Total Common Shares and Units - diluted 390,561,185 390,664,126 Period Ending Amounts Outstanding: Common Shares (includes Restricted Shares) 378,939,751 378,898,221 Units (includes OP Units and Restricted Units) 11,732,622 12,515,083 Total Shares and Units 390,672,373 391,413,304 Equity Residential Development and Lease-Up Projects as of March 31, 2024 (Amounts in thousands except for project and apartment unit amounts) Estimated/Actual Projects Location Ownership Percentage No. of Apartment Units Total Budgeted Capital Cost Total Book Value to Date Total Debt (1) Percentage Completed Start Date Initial Occupancy Completion Date Stabilization Date Percentage Leased / Occupied CONSOLIDATED: Projects Under Development: Laguna Clara II Santa Clara, CA 100% 225 $ 152,621 $ 91,314 $ — 63% Q2 2022 Q4 2024 Q1 2025 Q4 2025 – / – The Basin Wakefield, MA 95% 440 232,172 64,415 — 11% Q1 2024 Q4 2025 Q3 2026 Q2 2027 – / – Projects Under Development - Consolidated 665 384,793 155,729 — Projects Completed Not Stabilized: Reverb (fka 9th and W) (2) Washington, D.C. 92% 312 108,027 104,795 — 100% Q3 2021 Q2 2023 Q2 2023 Q3 2024 96% / 93% Projects Completed Not Stabilized - Consolidated 312 108,027 104,795 — UNCONSOLIDATED: Projects Under Development: Alloy Sunnyside Denver, CO 80% 209 70,004 64,752 28,682 95% Q3 2021 Q2 2024 Q2 2024 Q1 2025 – / – Alexan Harrison Harrison, NY 62% 450 200,664 184,242 88,605 95% Q3 2021 Q1 2024 Q4 2024 Q2 2026 9% / 2% Solana Beeler Park Denver, CO 90% 270 85,206 63,617 28,342 74% Q4 2021 Q2 2024 Q3 2024 Q1 2025 – / – Remy (Toll) Frisco, TX 75% 357 98,937 85,096 39,336 86% Q1 2022 Q2 2024 Q4 2024 Q3 2025 7% / – Sadie (fka Settler) (Toll) Fort Worth, TX 75% 362 82,775 63,612 22,058 82% Q2 2022 Q2 2024 Q3 2024 Q3 2025 2% / – Lyle (Toll) (2) Dallas, TX 75% 334 86,332 66,296 26,390 84% Q3 2022 Q1 2024 Q3 2024 Q1 2026 5% / 2% Projects Under Development - Unconsolidated 1,982 623,918 527,615 233,413 Total Development Projects - Consolidated 977 492,820 260,524 — Total Development Projects - Unconsolidated 1,982 623,918 527,615 233,413 Total Development Projects 2,959 $ 1,116,738 $ 788,139 $ 233,413 NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS Total Budgeted Capital Cost Q1 2024 NOI Projects Under Development - Consolidated $ 384,793 $ — Projects Completed Not Stabilized - Consolidated 108,027 1,019 Projects Under Development - Unconsolidated 623,918 (235 ) $ 1,116,738 $ 784 (1) All unconsolidated 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. Equity Residential Capital Expenditures to Real Estate For the Quarter Ended March 31, 2024 (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 77,373 2,315 79,688 Building Improvements $ 28,741 $ 3,340 (2) $ 32,081 $ 371 Renovation Expenditures 22,280 (1) 4,055 (2) 26,335 288 Replacements 15,050 54 15,104 195 Capital Expenditures to Real Estate (3) $ 66,071 $ 7,449 $ 73,520 $ 854 (1) Renovation Expenditures on 690 same store apartment units for the quarter ended March 31, 2024 approximated $32,289 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 $29.3 million of the Company's Capital Expenditures to Real Estate for Same Store Properties for the quarter ended March 31, 2024 were NOI-Enhancing, including the $22.3 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 2024 2023 March 31, 2024 December 31, 2023 Q1 Q4 Q3 Q2 Q1 Net income $ 953,449 $ 868,488 $ 305,032 $ 322,269 $ 181,286 $ 144,862 $ 220,071 Interest expense incurred, net 270,367 269,556 67,212 68,674 68,891 65,590 66,401 Amortization of deferred financing costs 8,880 8,941 1,918 1,918 3,027 2,017 1,979 Amortization of above/below market lease intangibles 4,464 4,464 1,116 1,116 1,116 1,116 1,116 Depreciation 898,574 888,709 225,695 226,788 224,736 221,355 215,830 Income and other tax expense (benefit) 1,154 1,148 304 256 258 336 298 EBITDA 2,136,888 2,041,306 601,277 621,021 479,314 435,276 505,695 Net (gain) loss on sales of real estate properties (370,515 ) (282,539 ) (188,185 ) (155,505 ) (26,912 ) 87 (100,209 ) EBITDAre 1,766,373 1,758,767 413,092 465,516 452,402 435,363 405,486 Write-off of pursuit costs (other expenses) 2,863 3,647 548 908 746 661 1,332 (Income) loss from investments in unconsolidated entities - operations 5,694 5,378 1,698 1,531 1,242 1,223 1,382 Realized (gain) loss on investment securities (interest and other income) (1,591 ) (1,504 ) — 7 (1,598 ) — 87 Unrealized (gain) loss on investment securities (interest and other income) (20,527 ) (13,466 ) (7,061 ) (9,005 ) (4,461 ) — — Insurance/litigation settlement or reserve income (interest and other income) (360 ) (1,055 ) (105 ) — (62 ) (193 ) (800 ) Insurance/litigation/environmental settlement or reserve expense (other expenses) 42,789 17,310 30,478 5,694 3,104 3,513 4,999 Advocacy contributions (other expenses) 2,276 2,142 141 1,665 150 320 7 Data transformation project (other expenses) 1,700 3,780 — — 295 1,405 2,080 Other (518 ) (589 ) 77 (602 ) 1 6 6 Normalized EBITDAre $ 1,798,699 $ 1,774,410 $ 438,868 $ 465,714 $ 451,819 $ 442,298 $ 414,579 Balance Sheet Items: March 31, 2024 December 31, 2023 Total debt $ 7,209,729 $ 7,390,450 Cash and cash equivalents (44,535 ) (50,743 ) Mortgage principal reserves/sinking funds (31,203 ) (29,270 ) Net debt $ 7,133,991 $ 7,310,437 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) Quarter Ended March 31, 2024 2023 Variance Impairment – non-operating real estate assets $ — $ — $ — Write-off of pursuit costs (other expenses) 548 1,332 (784 ) Premium on redemption of Preferred Shares 1,444 — 1,444 Debt extinguishment and preferred share redemption (gains) losses 1,444 — 1,444 (Income) loss from investments in unconsolidated entities ─ non-operating assets 955 627 328 Realized (gain) loss on investment securities (interest and other income) — 87 (87 ) Unrealized (gain) loss on investment securities (interest and other income) (7,061 ) — (7,061 ) Non-operating asset (gains) losses (6,106 ) 714 (6,820 ) Insurance/litigation settlement or reserve income (interest and other income) (105 ) (800 ) 695 Insurance/litigation/environmental settlement or reserve expense (other expenses) (1) 30,478 4,999 25,479 Advocacy contributions (other expenses) 141 7 134 Data transformation project (other expenses) — 2,080 (2,080 ) Other 77 6 71 Other miscellaneous items 30,591 6,292 24,299 Adjustments from FFO to Normalized FFO $ 26,477 $ 8,338 $ 18,139 (1) Insurance/litigation/environmental settlement or reserve expense includes adjustments to reserves relating to, among other things, litigation in California regarding the amount of late fees charged by the Company. 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. Q2 2024 Full Year 2024 (no change from previous Full Year 2024) 2024 Normalized FFO Guidance (per share diluted) Expected Normalized FFO Per Share $0.92 to $0.96 $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) During 2024, 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 0.715%), 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: March 31, 2024 Unsecured revolving credit facility commitment $ 2,500,000 Commercial paper balance outstanding (226,000 ) Unsecured revolving credit facility balance outstanding — Other restricted amounts (3,438 ) Unsecured revolving credit facility availability $ 2,270,562 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): Quarter Ended March 31, 2024 Net Gain (Loss) on Sales of Real Estate Properties $ 188,185 Accumulated Depreciation Gain (58,020 ) Economic Gain (Loss) $ 130,165 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 Q1 2024 Q1 2023 Q2 2024 2024 Per Share Per Share Per Share Per Share EPS – Diluted $ 0.77 $ 0.56 $0.45 to $0.49 $2.91 to $3.01 Depreciation expense 0.58 0.55 0.56 2.25 Net (gain) loss on sales (0.48 ) (0.26 ) (0.10 ) (1.42 ) Impairment – operating real estate assets — — — — FFO per share – Diluted 0.87 0.85 0.91 to 0.95 3.74 to 3.84 Impairment – non-operating real estate assets — — — — Write-off of pursuit costs — — — 0.01 Debt extinguishment and preferred share redemption (gains) losses — — — — Non-operating asset (gains) losses (0.02 ) — — 0.01 Other miscellaneous items 0.08 0.02 0.01 0.04 Normalized FFO per share – Diluted $ 0.93 $ 0.87 $0.92 to $0.96 $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 net 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 and further allocated between Residential same store and Non-Residential same store results (see Same Store Results): Quarter Ended March 31, 2024 2023 Net income $ 305,032 $ 220,071 Adjustments: Property management 35,458 31,466 General and administrative 15,720 16,165 Depreciation 225,695 215,830 Net (gain) loss on sales of real estate properties (188,185 ) (100,209 ) Interest and other income (9,329 ) (1,538 ) Other expenses 31,738 8,995 Interest: Expense incurred, net 67,212 66,401 Amortization of deferred financing costs 1,918 1,979 Income and other tax expense (benefit) 304 298 (Income) loss from investments in unconsolidated entities 1,698 1,382 Total NOI $ 487,261 $ 460,840 Quarter Ended March 31, Rental income: 2024 2023 Residential same store $ 687,139 $ 661,626 Non-Residential same store 29,526 26,677 Total same store 716,665 688,303 Non-same store/other 14,153 16,785 Total rental income 730,818 705,088 Operating expenses: Residential same store 224,419 221,848 Non-Residential same store 7,486 7,113 Total same store 231,905 228,961 Non-same store/other 11,652 15,287 Total operating expenses 243,557 244,248 NOI: Residential same store 462,720 439,778 Non-Residential same store 22,040 19,564 Total same store 484,760 459,342 Non-same store/other 2,501 1,498 Total NOI $ 487,261 $ 460,840 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 2023 and 2024, plus any properties in lease-up and not stabilized as of January 1, 2023. Unless otherwise noted, includes both Residential and Non-Residential operations for these properties. 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, 2023, less properties subsequently sold. Properties are included in Same Store when they are stabilized for all of the current and comparable periods presented. Unless otherwise noted, includes both Residential and Non-Residential operations for these properties. Same Store Residential Revenues – Revenues from our Residential Same Store Properties only 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 March 31, 2024. 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 quarter ended March 31, 2024 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/20240423724317/en/Contacts Marty McKenna 312-928-1901 mmckenna@eqr.com
Equity Residential (NYSE: EQR) today reported results for the quarter ended March 31, 2024. First Quarter 2024 Results All per share results are reported as available to common shares/units on a diluted basis. Quarter Ended March 31, 2024 2023 $ Change % Change Earnings Per Share (EPS) $ 0.77 $ 0.56 $ 0.21 37.5 % Funds from Operations (FFO) per share $ 0.87 $ 0.85 $ 0.02 2.4 % Normalized FFO (NFFO) per share $ 0.93 $ 0.87 $ 0.06 6.9 % Recent Highlights Same store revenue increased 4.1% for the first quarter of 2024 compared to the first quarter of 2023, driven by healthy demand and modest supply across most of our markets. Same store expense increased 1.3% with low or negative growth in our primary expense categories. The Company's continued focus on expense efficiency has delivered a five-year compounded annual growth rate of same store expenses of 3.1%. Same store Net Operating Income (NOI) increased 5.5%. Our focus on same store revenue growth, same store expense and corporate overhead efficiency and limited exposure to higher interest rates led to strong growth. Our high quality customer experience along with the overall desirability of our locations has led to the lowest quarterly same store Turnover in our history of 8.6%. During the first quarter of 2024, the Company sold three properties - one in Boston, one in Orange County and one in San Francisco - consisting of 504 apartment units, for an aggregate sale price of approximately $248.5 million. During the first quarter of 2024, the Company repurchased and retired 652,452 of its common shares, at a weighted average purchase price of $58.95 per share, for an aggregate purchased amount of approximately $38.5 million. “Our operating business performed very well this quarter positioning us favorably as we enter our primary leasing season,” said Mark J. Parrell, Equity Residential’s President and CEO. “The positive demand dynamics in our affluent renter demographic, limited new apartment supply in our existing predominantly coastal markets and our laser focus on expense management continue to produce good results.” Results Per Share The change in EPS for the quarter ended March 31, 2024 compared to the same period of 2023 is due primarily to higher property sale gains, the various adjustment items listed on page 25 of this release and the items described below. The per share change in FFO for the quarter ended March 31, 2024 compared to the same period of 2023 is due primarily to the various adjustment items listed on page 25 of this release and the items described below. The per share change in Normalized FFO is due primarily to: Positive/(Negative) Impact First Quarter 2024 vs. First Quarter 2023 Same store NOI $ 0.07 2024 and 2023 transaction activity impact on NOI, net (0.01 ) Corporate overhead (1) (0.01 ) Other items 0.01 Net $ 0.06 (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 27 through 33 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 6, 29 and 30 of this release. Same Store Results The following table shows the total same store results for the periods presented (includes Residential and Non-Residential). First Quarter 2024 vs. First Quarter 2023 First Quarter 2024 vs. Fourth Quarter 2023 Apartment Units 77,373 77,950 Physical Occupancy 96.3% vs. 95.9% 96.3% vs. 95.8% Revenues (1) 4.1% 1.1% Expenses 1.3% 6.5% NOI 5.5% (1.3%) (1) See page 10 for further discussion. 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. First Quarter 2024 vs. First Quarter 2023 First Quarter 2024 vs. Fourth Quarter 2023 % Change % Change Same Store Residential Revenues- comparable period Lease rates 2.9 % 0.1 % Leasing Concessions (0.3 %) 0.0 % Vacancy gain (loss) 0.4 % 0.6 % Bad Debt, Net (1) 0.3 % 0.0 % Other (2) 0.6 % (0.1 %) Same Store Residential Revenues- current period 3.9 % 0.6 % (1) Change in rental income due to bad debt write-offs and reserves, net of amounts (including governmental rental assistance payments) collected on previously written-off or reserved accounts. See page 12 for more detail. (2) Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items. See page 11 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 77,373 same store apartment units): April 2024 (1) Q1 2024 Q4 2023 Physical Occupancy 96.4% 96.3% 95.8% Percentage of Residents Renewing by quarter/month 61.0% 61.1% 59.1% New Lease Change 0.1% (2.2%) (4.6%) Renewal Rate Achieved 5.1% 4.7% 5.1% Blended Rate 3.1% 1.6% 0.7% (1) April 2024 results are preliminary as of April 18th. Investment Activity The Company did not acquire any operating properties during the first quarter of 2024. During the first quarter of 2024, the Company sold three properties - one in Boston, one in Orange County and one in suburban San Francisco - consisting of 504 apartment units, for an aggregate sale price of approximately $248.5 million at a weighted average Disposition Yield of 5.5%, generating an Unlevered IRR of 13.1%. The average age of the properties sold in the first quarter of 2024 was approximately 40 years. During the first quarter of 2024, the Company began construction on The Basin, a 440 apartment unit property located in suburban Boston with a Total Budgeted Capital Cost of $232.2 million. Capital Markets Activity During the first quarter of 2024, the Company repurchased and retired 652,452 of its common shares, at a weighted average purchase price of $58.95 per share, for an aggregate purchased amount of approximately $38.5 million. Combined with the Company’s fourth quarter 2023 repurchase activity, the Company has repurchased approximately $87.5 million of its common shares at a weighted average purchase price of $57.72 per share. Second Quarter 2024 Guidance At this time the Company is not revising its annual operating, EPS, FFO per share or Normalized FFO per share guidance provided as part of its fourth quarter 2023 earnings release. See page 26. The Company has established guidance ranges for the second quarter of 2024 EPS, FFO per share and Normalized FFO per share as listed below: Q2 2024 Guidance EPS $0.45 to $0.49 FFO per share $0.91 to $0.95 Normalized FFO per share $0.92 to $0.96 The difference between the first quarter of 2024 actual EPS of $0.77 and the second quarter of 2024 EPS guidance midpoint of $0.47 is due primarily to higher expected same store NOI, lower expected property sale gains and lower expected other expenses. The difference between the first quarter of 2024 actual FFO of $0.87 per share and the second quarter of 2024 FFO guidance midpoint of $0.93 per share is due primarily to higher expected same store NOI and lower expected other expenses. The difference between the first quarter of 2024 actual Normalized FFO of $0.93 per share and the second quarter of 2024 Normalized FFO guidance midpoint of $0.94 per share is due primarily to higher expected same store NOI. About Equity Residential Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. Equity Residential owns or has investments in 299 properties consisting of 79,688 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, April 24, 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) Quarter Ended March 31, 2024 2023 REVENUES Rental income $ 730,818 $ 705,088 EXPENSES Property and maintenance 134,630 137,579 Real estate taxes and insurance 108,927 106,669 Property management 35,458 31,466 General and administrative 15,720 16,165 Depreciation 225,695 215,830 Total expenses 520,430 507,709 Net gain (loss) on sales of real estate properties 188,185 100,209 Interest and other income 9,329 1,538 Other expenses (31,738 ) (8,995 ) Interest: Expense incurred, net (67,212 ) (66,401 ) Amortization of deferred financing costs (1,918 ) (1,979 ) Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of land parcels 307,034 221,751 Income and other tax (expense) benefit (304 ) (298 ) Income (loss) from investments in unconsolidated entities (1,698 ) (1,382 ) Net income 305,032 220,071 Net (income) loss attributable to Noncontrolling Interests: Operating Partnership (8,275 ) (7,059 ) Partially Owned Properties (970 ) (977 ) Net income attributable to controlling interests 295,787 212,035 Preferred distributions (547 ) (772 ) Premium on redemption of Preferred Shares (1,444 ) — Net income available to Common Shares $ 293,796 $ 211,263 Earnings per share – basic: Net income available to Common Shares $ 0.78 $ 0.56 Weighted average Common Shares outstanding 378,812 378,341 Earnings per share – diluted: Net income available to Common Shares $ 0.77 $ 0.56 Weighted average Common Shares outstanding 390,561 390,664 Distributions declared per Common Share outstanding $ 0.675 $ 0.6625 Equity Residential Consolidated Statements of Funds From Operations and Normalized Funds From Operations (Amounts in thousands except per share and Unit data) (Unaudited) Quarter Ended March 31, 2024 2023 Net income $ 305,032 $ 220,071 Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties (970 ) (977 ) Preferred distributions (547 ) (772 ) Premium on redemption of Preferred Shares (1,444 ) — Net income available to Common Shares and Units 302,071 218,322 Adjustments: Depreciation 225,695 215,830 Depreciation – Non-real estate additions (955 ) (1,156 ) Depreciation – Partially Owned Properties (542 ) (545 ) Depreciation – Unconsolidated Properties 335 632 Net (gain) loss on sales of real estate properties (188,185 ) (100,209 ) FFO available to Common Shares and Units 338,419 332,874 Adjustments (see note for additional detail): Write-off of pursuit costs 548 1,332 Debt extinguishment and preferred share redemption (gains) losses 1,444 — Non-operating asset (gains) losses (6,106 ) 714 Other miscellaneous items 30,591 6,292 Normalized FFO available to Common Shares and Units $ 364,896 $ 341,212 FFO $ 340,410 $ 333,646 Preferred distributions (547 ) (772 ) Premium on redemption of Preferred Shares (1,444 ) — FFO available to Common Shares and Units $ 338,419 $ 332,874 FFO per share and Unit – basic $ 0.87 $ 0.85 FFO per share and Unit – diluted $ 0.87 $ 0.85 Normalized FFO $ 365,443 $ 341,984 Preferred distributions (547 ) (772 ) Normalized FFO available to Common Shares and Units $ 364,896 $ 341,212 Normalized FFO per share and Unit – basic $ 0.94 $ 0.88 Normalized FFO per share and Unit – diluted $ 0.93 $ 0.87 Weighted average Common Shares and Units outstanding – basic 389,481 389,851 Weighted average Common Shares and Units outstanding – diluted 390,561 390,664 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) March 31, December 31, 2024 2023 ASSETS Land $ 5,550,882 $ 5,581,876 Depreciable property 22,930,036 22,938,426 Projects under development 155,729 78,036 Land held for development 64,466 114,300 Investment in real estate 28,701,113 28,712,638 Accumulated depreciation (9,978,012 ) (9,810,337 ) Investment in real estate, net 18,723,101 18,902,301 Investments in unconsolidated entities1 289,272 282,049 Cash and cash equivalents 44,535 50,743 Restricted deposits 152,025 89,252 Right-of-use assets 454,035 457,266 Other assets 231,829 252,953 Total assets $ 19,894,797 $ 20,034,564 LIABILITIES AND EQUITY Liabilities: Mortgage notes payable, net $ 1,633,870 $ 1,632,902 Notes, net 5,349,938 5,348,417 Line of credit and commercial paper 225,921 409,131 Accounts payable and accrued expenses 146,072 87,377 Accrued interest payable 49,190 65,716 Lease liabilities 310,422 311,640 Other liabilities 274,919 272,596 Security deposits 68,818 69,178 Distributions payable 263,615 259,231 Total liabilities 8,322,765 8,456,188 Commitments and contingencies Redeemable Noncontrolling Interests – Operating Partnership 298,219 289,248 Equity: Shareholders' equity: Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized; 343,100 shares issued and outstanding as of March 31, 2024 and 745,600 shares issued and outstanding as of December 31, 2023 17,155 37,280 Common Shares of beneficial interest, $0.01 par value; 1,000,000,000 shares authorized; 378,939,751 shares issued and outstanding as of March 31, 2024 and 379,291,417 shares issued and outstanding as of December 31, 2023 3,789 3,793 Paid in capital 9,603,743 9,601,866 Retained earnings 1,436,671 1,437,185 Accumulated other comprehensive income (loss) 6,314 5,704 Total shareholders’ equity 11,067,672 11,085,828 Noncontrolling Interests: Operating Partnership 207,272 202,306 Partially Owned Properties (1,131 ) 994 Total Noncontrolling Interests 206,141 203,300 Total equity 11,273,813 11,289,128 Total liabilities and equity $ 19,894,797 $ 20,034,564 1 Includes $227.3 million and $220.2 million in unconsolidated development projects as of March 31, 2024 and December 31, 2023, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects. Equity Residential Portfolio Summary As of March 31, 2024 % of Stabilized Average Apartment Budgeted Rental Markets/Metro Areas Properties Units NOI Rate Established Markets: Los Angeles 58 14,732 17.3 % $ 2,925 Orange County 12 3,718 5.0 % 2,900 San Diego 12 2,878 4.1 % 3,103 Subtotal – Southern California 82 21,328 26.4 % 2,945 Washington, D.C. 48 15,028 16.4 % 2,666 San Francisco 42 11,567 15.3 % 3,282 New York 34 8,536 14.2 % 4,592 Boston 26 7,077 11.7 % 3,557 Seattle 44 9,267 10.5 % 2,569 Subtotal – Established Markets 276 72,803 94.5 % 3,146 Expansion Markets: Denver 9 2,792 2.8 % 2,409 Atlanta 7 2,111 1.6 % 2,049 Dallas/Ft. Worth 4 1,241 0.7 % 1,905 Austin 3 741 0.4 % 1,842 Subtotal – Expansion Markets 23 6,885 5.5 % 2,148 Total 299 79,688 100.0 % $ 3,061 Properties Apartment Units Wholly Owned Properties 285 76,628 Partially Owned Properties – Consolidated 14 3,060 299 79,688 Note: Projects under development are not included in the Portfolio Summary until construction has been completed. Equity Residential Portfolio Rollforward Q1 2024 ($ in thousands) Properties Apartment Units Sales Price Disposition Yield 12/31/2023 302 80,191 Dispositions: Consolidated Rental Properties (3 ) (504 ) $ (248,500 ) (5.5 %) Configuration Changes — 1 3/31/2024 299 79,688 Equity Residential First Quarter 2024 vs. First Quarter 2023 Same Store Results/Statistics Including 77,373 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands except for Average Rental Rate) Results Statistics Description Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Q1 2024 $ 716,665 $ 231,905 $ 484,760 $ 3,077 96.3 % 8.6 % Q1 2023 $ 688,303 $ 228,961 $ 459,342 $ 2,975 95.9 % 9.1 % Change $ 28,362 $ 2,944 $ 25,418 $ 102 0.4 % (0.5 %) Change 4.1 % (1) 1.3 % 5.5 % 3.4 % First Quarter 2024 vs. Fourth Quarter 2023 Same Store Results/Statistics Including 77,950 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands except for Average Rental Rate) Results Statistics Description Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Q1 2024 $ 720,261 $ 233,087 $ 487,174 $ 3,070 96.3 % 8.6 % Q4 2023 $ 712,383 $ 218,881 $ 493,502 $ 3,067 95.8 % 9.5 % Change $ 7,878 $ 14,206 $ (6,328 ) $ 3 0.5 % (0.9 %) Change 1.1 % (1) 6.5 % (1.3 %) 0.1 % (1) Non-Residential contributed 0.20% and 0.50% to quarterly and sequential same store revenue growth, respectively, primarily due to improved collectibility expectations for certain Non-Residential tenants, resulting in the reinstatement of their respective straight-line receivable balances in the first quarter of 2024. The Company contemplated these contributions in its previous 2024 annual guidance. Equity Residential Same Store Residential Revenues – GAAP to Cash Basis (1) ($ in thousands) First Quarter 2024 vs. First Quarter 2023 First Quarter 2024 vs. Fourth Quarter 2023 77,373 Same Store Apartment Units 77,950 Same Store Apartment Units Q1 2024 Q1 2023 Q1 2024 Q4 2023 Same Store Residential Revenues (GAAP Basis) $ 687,139 $ 661,626 $ 690,735 $ 686,778 Leasing Concessions amortized 5,076 2,801 5,093 4,810 Leasing Concessions granted (2) (4,951 ) (4,167 ) (4,955 ) (5,392 ) Same Store Residential Revenues with Leasing Concessions on a cash basis $ 687,264 $ 660,260 $ 690,873 $ 686,196 % change - GAAP revenue 3.9 % 0.6 % % change - cash revenue 4.1 % 0.7 % (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail. (2) Concession usage is primarily concentrated in Los Angeles, San Francisco and Seattle. Same Store Net Operating Income By Quarter Including 77,373 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Same store revenues $ 716,665 $ 708,665 $ 704,606 $ 700,114 $ 688,303 Same store expenses 231,905 217,880 223,739 219,571 228,961 Same store NOI $ 484,760 $ 490,785 $ 480,867 $ 480,543 $ 459,342 Equity Residential Same Store Residential Accounts Receivable Balances Including 77,373 Same Store Apartment Units ($ in thousands) Balance Sheet (Other assets): March 31, 2024 December 31, 2023 March 31, 2023 Residential accounts receivable balances $ 18,290 $ 21,021 $ 32,210 Allowance for doubtful accounts (13,204 ) (15,485 ) (28,237 ) Net receivable balances $ 5,086 $ 5,536 $ 3,973 Straight-line receivable balances $ 8,337 (1) $ 8,461 $ 5,702 (1) Total same store Residential Leasing Concessions granted in the first quarter of 2024 were approximately $5.0 million. The straight-line receivable balance of $8.3 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in the remainder of 2024 and the first quarter of 2025. Same Store Residential Bad Debt Including 77,373 Same Store Apartment Units ($ in thousands) Income Statement (Rental income): Q1 2024 Q4 2023 Q1 2023 Bad debts before governmental rental assistance $ 9,187 $ 9,325 $ 11,896 Governmental rental assistance received (379 ) (379 ) (1,161 ) Bad Debt, Net $ 8,808 $ 8,946 $ 10,735 Bad Debt, Net as a % of Same Store Residential Revenues 1.3 % 1.3 % 1.6 % Equity Residential First Quarter 2024 vs. First Quarter 2023 Same Store Residential Results/Statistics by Market Increase (Decrease) from Prior Year's Quarter Markets/Metro Areas Apartment Units Q1 2024 % of Actual NOI Q1 2024 Average Rental Rate Q1 2024 Weighted Average Physical Occupancy % Q1 2024 Turnover Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Los Angeles 14,135 17.5 % $ 2,922 95.5 % 9.6 % 5.2 % 1.5 % 7.0 % 5.2 % 0.0 % (0.4 %) Orange County 3,718 5.2 % 2,900 96.1 % 7.4 % 5.9 % 3.5 % 6.6 % 5.9 % (0.1 %) (0.1 %) San Diego 2,878 4.3 % 3,103 96.1 % 8.0 % 6.5 % 1.1 % 8.2 % 5.7 % 0.7 % (1.7 %) Subtotal – Southern California 20,731 27.0 % 2,943 95.7 % 9.0 % 5.5 % 1.7 % 7.1 % 5.4 % 0.1 % (0.5 %) Washington, D.C. 14,716 16.9 % 2,665 97.1 % 7.0 % 5.5 % (1.9 %) 9.4 % 5.0 % 0.5 % (0.4 %) San Francisco 11,345 15.8 % 3,281 96.4 % 9.5 % 2.0 % 2.3 % 1.9 % 1.2 % 0.7 % 0.1 % New York 8,536 14.1 % 4,592 97.0 % 6.5 % 3.9 % 3.2 % 4.5 % 3.7 % 0.2 % (1.0 %) Boston 7,077 11.0 % 3,557 95.7 % 7.4 % 4.8 % (2.2 %) 8.0 % 4.6 % 0.2 % (0.6 %) Seattle 9,266 10.4 % 2,569 96.1 % 9.7 % 0.4 % 5.0 % (1.4 %) (0.6 %) 1.0 % (1.4 %) Denver 2,505 2.6 % 2,415 96.3 % 10.1 % 1.3 % (0.5 %) 2.1 % 1.6 % 0.0 % (1.0 %) Other Expansion Markets 3,197 2.2 % 1,973 95.5 % 13.3 % 0.9 % (4.2 %) 5.3 % 0.1 % 0.6 % 0.9 % Total 77,373 100.0 % $ 3,077 96.3 % 8.6 % 3.9 % 1.2 % 5.2 % 3.4 % 0.4 % (0.5 %) Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.0% of total revenues for the quarter ended March 31, 2024. Equity Residential First Quarter 2024 vs. Fourth Quarter 2023 Same Store Residential Results/Statistics by Market Increase (Decrease) from Prior Quarter Markets/Metro Areas Apartment Units Q1 2024 % of Actual NOI Q1 2024 Average Rental Rate Q1 2024 Weighted Average Physical Occupancy % Q1 2024 Turnover Revenues Expenses NOI Average Rental Rate Physical Occupancy Turnover Los Angeles 14,135 17.3 % $ 2,922 95.5 % 9.6 % 0.9 % 8.0 % (2.2 %) 0.4 % 0.4 % (1.3 %) Orange County 3,718 5.2 % 2,900 96.1 % 7.4 % 0.2 % 5.4 % (1.2 %) 0.3 % (0.2 %) (1.3 %) San Diego 2,878 4.3 % 3,103 96.1 % 8.0 % 0.7 % 4.7 % (0.4 %) (0.2 %) 0.8 % (3.3 %) Subtotal – Southern California 20,731 26.8 % 2,943 95.7 % 9.0 % 0.7 % 7.3 % (1.7 %) 0.3 % 0.4 % (1.6 %) Washington, D.C. 14,716 16.8 % 2,665 97.1 % 7.0 % 0.6 % 4.8 % (1.3 %) 0.4 % 0.1 % (1.2 %) San Francisco 11,345 15.7 % 3,281 96.4 % 9.5 % 0.6 % 8.2 % (2.7 %) (0.6 %) 1.1 % (1.4 %) New York 8,536 14.0 % 4,592 97.0 % 6.5 % 1.0 % 6.7 % (2.8 %) 0.6 % 0.4 % (0.4 %) Boston 7,077 11.0 % 3,557 95.7 % 7.4 % (0.4 %) 3.3 % (1.9 %) (0.3 %) (0.1 %) (1.2 %) Seattle 9,266 10.4 % 2,569 96.1 % 9.7 % 1.2 % 8.3 % (1.5 %) 0.3 % 0.8 % 1.5 % Denver 2,792 2.9 % 2,409 96.2 % 10.5 % 0.1 % 6.6 % (2.5 %) (0.1 %) 0.2 % (1.3 %) Other Expansion Markets 3,487 2.4 % 1,979 95.3 % 13.3 % (1.1 %) 6.9 % (6.4 %) (1.5 %) 0.5 % 0.5 % Total 77,950 100.0 % $ 3,070 96.3 % 8.6 % 0.6 % 6.5 % (2.1 %) 0.1 % 0.5 % (0.9 %) Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.0% of total revenues for the quarter ended March 31, 2024. Equity Residential Same Store Residential Net Effective Lease Pricing Statistics For 77,373 Same Store Apartment Units New Lease Change (1) Renewal Rate Achieved (1) Blended Rate (1) Markets/Metro Areas Q1 2024 Q4 2023 Q1 2024 Q4 2023 Q1 2024 Q4 2023 Southern California (3.6 %) (3.1 %) 4.4 % 5.2 % 0.5 % 1.2 % San Francisco (1.2 %) (9.7 %) 4.1 % 4.4 % 1.6 % (3.1 %) Washington, D.C. 1.6 % 0.6 % 5.8 % 6.2 % 4.0 % 3.8 % New York (1.1 %) (2.2 %) 4.1 % 4.5 % 2.2 % 2.1 % Seattle (1.2 %) (8.4 %) 6.1 % 5.6 % 2.8 % (1.4 %) Boston (3.4 %) (1.0 %) 5.2 % 5.3 % 1.0 % 2.8 % Denver (6.3 %) (5.1 %) 4.3 % 4.7 % (2.0 %) (0.3 %) Other Expansion Markets (8.7 %) (12.2 %) 4.1 % 4.8 % (3.7 %) (5.1 %) Total (2.2 %) (4.6 %) 4.7 % 5.1 % 1.6 % 0.7 % (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions. See page 3 for April 2024 preliminary data. Equity Residential First Quarter 2024 vs. First Quarter 2023 Total Same Store Operating Expenses Including 77,373 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands) Q1 2024 Q1 2023 $ Change (1) % Change % of Q1 2024 Operating Expenses Real estate taxes $ 94,205 $ 90,844 $ 3,361 3.7 % 40.6 % On-site payroll 43,119 42,813 306 0.7 % 18.6 % Utilities 37,234 39,197 (1,963 ) (5.0 %) 16.1 % Repairs and maintenance 29,888 30,546 (658 ) (2.2 %) 12.9 % Insurance 9,341 8,459 882 10.4 % 4.0 % Leasing and advertising 2,375 2,591 (216 ) (8.3 %) 1.0 % Other on-site operating expenses 15,743 14,511 1,232 8.5 % 6.8 % Total Same Store Operating Expenses (2) $ 231,905 $ 228,961 $ 2,944 1.3 % 100.0 % (1) The quarter-over-quarter changes were primarily driven by the following factors: Real estate taxes – Increase due to escalation in rates and assessed values including an approximately 1.0% contribution to growth from 421-a tax abatement burnoffs in New York City. Once the burnoffs are completed, previously rent-restricted apartment units will transition to market. On-site payroll – Modest increase due primarily to higher wages partially offset by the impact of various innovation initiatives. Utilities – Decrease from electric primarily driven by lower commodity prices. Repairs and maintenance – Decrease due primarily to lower resident Turnover compared to the same period of 2023, moderation of previous wage/staffing pressures and a benefit from a relatively easy comparable period. Insurance – Increase due to higher premiums on property insurance renewal due to conditions in the insurance market that while less difficult than recent years, remain challenging. Other on-site operating expenses – Increase primarily driven by higher property-related legal expenses. (2) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. Equity Residential Debt Summary as of March 31, 2024 ($ in thousands) Debt Balances (1) % of Total Weighted Average Rates (1) Weighted Average Maturities (years) Secured $ 1,633,870 22.7 % 3.84 % 7.6 Unsecured 5,575,859 77.3 % 3.65 % 8.2 Total $ 7,209,729 100.0 % 3.69 % 8.1 Fixed Rate Debt: Secured – Conventional $ 1,399,221 19.4 % 3.89 % 7.1 Unsecured – Public 5,349,938 74.2 % 3.53 % 8.6 Fixed Rate Debt 6,749,159 93.6 % 3.60 % 8.3 Floating Rate Debt: Secured – Tax Exempt 234,649 3.3 % 3.49 % 10.4 Unsecured – Revolving Credit Facility — — — 3.6 Unsecured – Commercial Paper Program (2) 225,921 3.1 % 5.60 % — Floating Rate Debt 460,570 6.4 % 4.72 % 5.4 Total $ 7,209,729 100.0 % 3.69 % 8.1 (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. (2) At March 31, 2024, the weighted average maturity of commercial paper outstanding was 3 days. The weighted average amount outstanding for the quarter ended March 31, 2024 was approximately $333.1 million. Note: The Company capitalized interest of approximately $3.1 million and $3.4 million during the quarters ended March 31, 2024 and 2023, respectively. Equity Residential Debt Maturity Schedule as of March 31, 2024 ($ in thousands) Year Fixed Rate Floating Rate Total % of Total Weighted Average Coupons on Fixed Rate Debt (1) Weighted Average Coupons on Total Debt (1) 2024 $ — $ 232,200 (2) $ 232,200 3.2 % — 5.46 % 2025 450,000 8,100 458,100 6.3 % 3.38 % 3.38 % 2026 592,025 9,000 601,025 8.3 % 3.58 % 3.58 % 2027 400,000 9,800 409,800 5.6 % 3.25 % 3.26 % 2028 900,000 10,700 910,700 12.5 % 3.79 % 3.79 % 2029 888,120 11,500 899,620 12.4 % 3.30 % 3.31 % 2030 1,148,462 12,700 1,161,162 15.9 % 2.53 % 2.54 % 2031 528,500 39,800 568,300 7.8 % 1.94 % 2.05 % 2032 — 28,000 28,000 0.4 % — 3.70 % 2033 550,000 2,300 552,300 7.6 % 5.22 % 5.22 % 2034+ 1,350,850 108,600 1,459,450 20.0 % 4.39 % 4.27 % Subtotal 6,807,957 472,700 7,280,657 100.0 % 3.53 % 3.58 % Deferred Financing Costs and Unamortized (Discount) (58,798 ) (12,130 ) (70,928 ) N/A N/A N/A Total $ 6,749,159 $ 460,570 $ 7,209,729 100.0 % 3.53 % 3.58 % (1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. (2) Includes $226.0 million in principal outstanding on the Company's Commercial Paper Program. Equity Residential Selected Unsecured Public Debt Covenants March 31, December 31, 2024 2023 Debt to Adjusted Total Assets (not to exceed 60%) 25.8% 26.5% 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) 6.41 6.19 Total Unencumbered Assets to Unsecured Debt (must be at least 125%) 528.1% 510.7% 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 March 31, December 31, 2024 2023 Total debt to Normalized EBITDAre 4.01x 4.17x Net debt to Normalized EBITDAre 3.97x 4.12x Unencumbered NOI as a % of total NOI 89.6% 89.8% Note: See Normalized EBITDAre Reconciliations for detail. Equity Residential Capital Structure as of March 31, 2024 (Amounts in thousands except for share/unit and per share amounts) Secured Debt $ 1,633,870 22.7 % Unsecured Debt 5,575,859 77.3 % Total Debt 7,209,729 100.0 % 22.6 % Common Shares (includes Restricted Shares) 378,939,751 97.0 % Units (includes OP Units and Restricted Units) 11,732,622 3.0 % Total Shares and Units 390,672,373 100.0 % Common Share Price at March 31, 2024 $ 63.11 24,655,333 99.9 % Perpetual Preferred Equity (see below) 17,155 0.1 % Total Equity 24,672,488 100.0 % 77.4 % Total Market Capitalization $ 31,882,217 100.0 % Perpetual Preferred Equity as of March 31, 2024 (Amounts in thousands except for share and per share amounts) Series Call Date Outstanding Shares Liquidation Value Annual Dividend Per Share Annual Dividend Amount Preferred Shares: 8.29% Series K (1) 12/10/26 343,100 $ 17,155 $ 4.145 $ 1,422 (1) During the first quarter of 2024, the Company repurchased and retired 402,500 Series K Preferred Shares with a liquidation value of $20.1 million for total cash consideration of approximately $21.8 million. As a result of this partial redemption, the Company incurred a cash charge of approximately $1.4 million which was recorded as a premium on the redemption of preferred shares, which impacted EPS and FFO per share but did not impact Normalized FFO per share. Equity Residential Common Share and Unit Weighted Average Amounts Outstanding Q1 2024 Q1 2023 Weighted Average Amounts Outstanding for Net Income Purposes: Common Shares - basic 378,811,922 378,340,876 Shares issuable from assumed conversion/vesting of: - OP Units 10,669,346 11,509,669 - long-term compensation shares/units 1,079,917 813,581 Total Common Shares and Units - diluted 390,561,185 390,664,126 Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes: Common Shares - basic 378,811,922 378,340,876 OP Units - basic 10,669,346 11,509,669 Total Common Shares and OP Units - basic 389,481,268 389,850,545 Shares issuable from assumed conversion/vesting of: - long-term compensation shares/units 1,079,917 813,581 Total Common Shares and Units - diluted 390,561,185 390,664,126 Period Ending Amounts Outstanding: Common Shares (includes Restricted Shares) 378,939,751 378,898,221 Units (includes OP Units and Restricted Units) 11,732,622 12,515,083 Total Shares and Units 390,672,373 391,413,304 Equity Residential Development and Lease-Up Projects as of March 31, 2024 (Amounts in thousands except for project and apartment unit amounts) Estimated/Actual Projects Location Ownership Percentage No. of Apartment Units Total Budgeted Capital Cost Total Book Value to Date Total Debt (1) Percentage Completed Start Date Initial Occupancy Completion Date Stabilization Date Percentage Leased / Occupied CONSOLIDATED: Projects Under Development: Laguna Clara II Santa Clara, CA 100% 225 $ 152,621 $ 91,314 $ — 63% Q2 2022 Q4 2024 Q1 2025 Q4 2025 – / – The Basin Wakefield, MA 95% 440 232,172 64,415 — 11% Q1 2024 Q4 2025 Q3 2026 Q2 2027 – / – Projects Under Development - Consolidated 665 384,793 155,729 — Projects Completed Not Stabilized: Reverb (fka 9th and W) (2) Washington, D.C. 92% 312 108,027 104,795 — 100% Q3 2021 Q2 2023 Q2 2023 Q3 2024 96% / 93% Projects Completed Not Stabilized - Consolidated 312 108,027 104,795 — UNCONSOLIDATED: Projects Under Development: Alloy Sunnyside Denver, CO 80% 209 70,004 64,752 28,682 95% Q3 2021 Q2 2024 Q2 2024 Q1 2025 – / – Alexan Harrison Harrison, NY 62% 450 200,664 184,242 88,605 95% Q3 2021 Q1 2024 Q4 2024 Q2 2026 9% / 2% Solana Beeler Park Denver, CO 90% 270 85,206 63,617 28,342 74% Q4 2021 Q2 2024 Q3 2024 Q1 2025 – / – Remy (Toll) Frisco, TX 75% 357 98,937 85,096 39,336 86% Q1 2022 Q2 2024 Q4 2024 Q3 2025 7% / – Sadie (fka Settler) (Toll) Fort Worth, TX 75% 362 82,775 63,612 22,058 82% Q2 2022 Q2 2024 Q3 2024 Q3 2025 2% / – Lyle (Toll) (2) Dallas, TX 75% 334 86,332 66,296 26,390 84% Q3 2022 Q1 2024 Q3 2024 Q1 2026 5% / 2% Projects Under Development - Unconsolidated 1,982 623,918 527,615 233,413 Total Development Projects - Consolidated 977 492,820 260,524 — Total Development Projects - Unconsolidated 1,982 623,918 527,615 233,413 Total Development Projects 2,959 $ 1,116,738 $ 788,139 $ 233,413 NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS Total Budgeted Capital Cost Q1 2024 NOI Projects Under Development - Consolidated $ 384,793 $ — Projects Completed Not Stabilized - Consolidated 108,027 1,019 Projects Under Development - Unconsolidated 623,918 (235 ) $ 1,116,738 $ 784 (1) All unconsolidated 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. Equity Residential Capital Expenditures to Real Estate For the Quarter Ended March 31, 2024 (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 77,373 2,315 79,688 Building Improvements $ 28,741 $ 3,340 (2) $ 32,081 $ 371 Renovation Expenditures 22,280 (1) 4,055 (2) 26,335 288 Replacements 15,050 54 15,104 195 Capital Expenditures to Real Estate (3) $ 66,071 $ 7,449 $ 73,520 $ 854 (1) Renovation Expenditures on 690 same store apartment units for the quarter ended March 31, 2024 approximated $32,289 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 $29.3 million of the Company's Capital Expenditures to Real Estate for Same Store Properties for the quarter ended March 31, 2024 were NOI-Enhancing, including the $22.3 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 2024 2023 March 31, 2024 December 31, 2023 Q1 Q4 Q3 Q2 Q1 Net income $ 953,449 $ 868,488 $ 305,032 $ 322,269 $ 181,286 $ 144,862 $ 220,071 Interest expense incurred, net 270,367 269,556 67,212 68,674 68,891 65,590 66,401 Amortization of deferred financing costs 8,880 8,941 1,918 1,918 3,027 2,017 1,979 Amortization of above/below market lease intangibles 4,464 4,464 1,116 1,116 1,116 1,116 1,116 Depreciation 898,574 888,709 225,695 226,788 224,736 221,355 215,830 Income and other tax expense (benefit) 1,154 1,148 304 256 258 336 298 EBITDA 2,136,888 2,041,306 601,277 621,021 479,314 435,276 505,695 Net (gain) loss on sales of real estate properties (370,515 ) (282,539 ) (188,185 ) (155,505 ) (26,912 ) 87 (100,209 ) EBITDAre 1,766,373 1,758,767 413,092 465,516 452,402 435,363 405,486 Write-off of pursuit costs (other expenses) 2,863 3,647 548 908 746 661 1,332 (Income) loss from investments in unconsolidated entities - operations 5,694 5,378 1,698 1,531 1,242 1,223 1,382 Realized (gain) loss on investment securities (interest and other income) (1,591 ) (1,504 ) — 7 (1,598 ) — 87 Unrealized (gain) loss on investment securities (interest and other income) (20,527 ) (13,466 ) (7,061 ) (9,005 ) (4,461 ) — — Insurance/litigation settlement or reserve income (interest and other income) (360 ) (1,055 ) (105 ) — (62 ) (193 ) (800 ) Insurance/litigation/environmental settlement or reserve expense (other expenses) 42,789 17,310 30,478 5,694 3,104 3,513 4,999 Advocacy contributions (other expenses) 2,276 2,142 141 1,665 150 320 7 Data transformation project (other expenses) 1,700 3,780 — — 295 1,405 2,080 Other (518 ) (589 ) 77 (602 ) 1 6 6 Normalized EBITDAre $ 1,798,699 $ 1,774,410 $ 438,868 $ 465,714 $ 451,819 $ 442,298 $ 414,579 Balance Sheet Items: March 31, 2024 December 31, 2023 Total debt $ 7,209,729 $ 7,390,450 Cash and cash equivalents (44,535 ) (50,743 ) Mortgage principal reserves/sinking funds (31,203 ) (29,270 ) Net debt $ 7,133,991 $ 7,310,437 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) Quarter Ended March 31, 2024 2023 Variance Impairment – non-operating real estate assets $ — $ — $ — Write-off of pursuit costs (other expenses) 548 1,332 (784 ) Premium on redemption of Preferred Shares 1,444 — 1,444 Debt extinguishment and preferred share redemption (gains) losses 1,444 — 1,444 (Income) loss from investments in unconsolidated entities ─ non-operating assets 955 627 328 Realized (gain) loss on investment securities (interest and other income) — 87 (87 ) Unrealized (gain) loss on investment securities (interest and other income) (7,061 ) — (7,061 ) Non-operating asset (gains) losses (6,106 ) 714 (6,820 ) Insurance/litigation settlement or reserve income (interest and other income) (105 ) (800 ) 695 Insurance/litigation/environmental settlement or reserve expense (other expenses) (1) 30,478 4,999 25,479 Advocacy contributions (other expenses) 141 7 134 Data transformation project (other expenses) — 2,080 (2,080 ) Other 77 6 71 Other miscellaneous items 30,591 6,292 24,299 Adjustments from FFO to Normalized FFO $ 26,477 $ 8,338 $ 18,139 (1) Insurance/litigation/environmental settlement or reserve expense includes adjustments to reserves relating to, among other things, litigation in California regarding the amount of late fees charged by the Company. 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. Q2 2024 Full Year 2024 (no change from previous Full Year 2024) 2024 Normalized FFO Guidance (per share diluted) Expected Normalized FFO Per Share $0.92 to $0.96 $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) During 2024, 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 0.715%), 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: March 31, 2024 Unsecured revolving credit facility commitment $ 2,500,000 Commercial paper balance outstanding (226,000 ) Unsecured revolving credit facility balance outstanding — Other restricted amounts (3,438 ) Unsecured revolving credit facility availability $ 2,270,562 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): Quarter Ended March 31, 2024 Net Gain (Loss) on Sales of Real Estate Properties $ 188,185 Accumulated Depreciation Gain (58,020 ) Economic Gain (Loss) $ 130,165 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 Q1 2024 Q1 2023 Q2 2024 2024 Per Share Per Share Per Share Per Share EPS – Diluted $ 0.77 $ 0.56 $0.45 to $0.49 $2.91 to $3.01 Depreciation expense 0.58 0.55 0.56 2.25 Net (gain) loss on sales (0.48 ) (0.26 ) (0.10 ) (1.42 ) Impairment – operating real estate assets — — — — FFO per share – Diluted 0.87 0.85 0.91 to 0.95 3.74 to 3.84 Impairment – non-operating real estate assets — — — — Write-off of pursuit costs — — — 0.01 Debt extinguishment and preferred share redemption (gains) losses — — — — Non-operating asset (gains) losses (0.02 ) — — 0.01 Other miscellaneous items 0.08 0.02 0.01 0.04 Normalized FFO per share – Diluted $ 0.93 $ 0.87 $0.92 to $0.96 $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 net 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 and further allocated between Residential same store and Non-Residential same store results (see Same Store Results): Quarter Ended March 31, 2024 2023 Net income $ 305,032 $ 220,071 Adjustments: Property management 35,458 31,466 General and administrative 15,720 16,165 Depreciation 225,695 215,830 Net (gain) loss on sales of real estate properties (188,185 ) (100,209 ) Interest and other income (9,329 ) (1,538 ) Other expenses 31,738 8,995 Interest: Expense incurred, net 67,212 66,401 Amortization of deferred financing costs 1,918 1,979 Income and other tax expense (benefit) 304 298 (Income) loss from investments in unconsolidated entities 1,698 1,382 Total NOI $ 487,261 $ 460,840 Quarter Ended March 31, Rental income: 2024 2023 Residential same store $ 687,139 $ 661,626 Non-Residential same store 29,526 26,677 Total same store 716,665 688,303 Non-same store/other 14,153 16,785 Total rental income 730,818 705,088 Operating expenses: Residential same store 224,419 221,848 Non-Residential same store 7,486 7,113 Total same store 231,905 228,961 Non-same store/other 11,652 15,287 Total operating expenses 243,557 244,248 NOI: Residential same store 462,720 439,778 Non-Residential same store 22,040 19,564 Total same store 484,760 459,342 Non-same store/other 2,501 1,498 Total NOI $ 487,261 $ 460,840 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 2023 and 2024, plus any properties in lease-up and not stabilized as of January 1, 2023. Unless otherwise noted, includes both Residential and Non-Residential operations for these properties. 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, 2023, less properties subsequently sold. Properties are included in Same Store when they are stabilized for all of the current and comparable periods presented. Unless otherwise noted, includes both Residential and Non-Residential operations for these properties. Same Store Residential Revenues – Revenues from our Residential Same Store Properties only 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 March 31, 2024. 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 quarter ended March 31, 2024 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/20240423724317/en/