October 29, 2008 05:03 PM Eastern Daylight Time

Equity Residential Reports Third Quarter Results

Same Store NOI Increases 3.9%

CHICAGO--(BUSINESS WIRE)--Equity Residential (NYSE: EQR) today reported results for the quarter and nine months ended September 30, 2008. All per share results are reported on a fully-diluted basis.

“We are very pleased with our operating performance for the third quarter and the first nine months of the year as we have maintained strong occupancy and realized good revenue growth across most of our major markets,” said David J. Neithercut, Equity Residential’s President and CEO. “However, our markets are currently experiencing significant headwinds due to the slowing economy and resulting job losses which will slow revenue growth, as we expected, in the fourth quarter and cause property fundamentals to further weaken in 2009.”

Third Quarter 2008

For the quarter ended September 30, 2008, the company reported earnings of $0.64 per share compared to $1.62 per share in the third quarter of 2007. The decrease is primarily attributable to lower gains on property sales due to a lower volume of property sales in 2008.

Funds from Operations (FFO) for the quarter ended September 30, 2008 were $0.65 per share compared to $0.58 per share in the same period of 2007. The $0.07 per share increase in the third quarter of 2008 is due primarily to:

A positive impact of approximately $0.06 per share as a result of higher net operating income (NOI) from the company’s same store portfolio and the lease up of development and other non-same store properties;
A negative impact of approximately $0.03 per share from dilution due to the company’s decision to be a net seller of assets over the past several quarters;
A net cumulative positive impact on interest expense and preferred share distributions of approximately $0.05 per share due primarily to lower floating rates of interest and lower preferred share redemption costs;
A negative impact of approximately $0.02 per share from the company’s condominium operations and impairment of halted condominium conversions; and
The net positive impact of $0.01 per share due to gain on a land sale and lower G&A expense offset by lower interest and other income and certain other non-comparable items listed on page 24 of this release.

Nine Months Ended September 30, 2008

For the nine months ended September 30, 2008, the company reported earnings of $1.62 per share compared to $2.93 per share in the same period of 2007.

FFO for the nine months ended September 30, 2008 were $1.88 per share compared to $1.73 per share in the same period of 2007.

Same Store Results

On a same store third quarter to third quarter comparison, which includes 122,380 apartment units, revenues increased 3.4%, expenses increased 2.6% and NOI increased 3.9%. The increase in same store revenues was driven primarily by an increase in average rental rates.

On a same store nine-month to nine-month comparison, which includes 115,713 apartment units, revenues increased 3.6%, expenses increased 2.1% and NOI increased 4.4%. The increase in same store revenues was driven primarily by an increase in average rental rates.

Acquisitions/Dispositions

During the third quarter of 2008, the company did not acquire any properties but sold 11 properties, consisting of 3,513 apartment units, for an aggregate sale price of $328.5 million at an average capitalization (cap) rate of 5.9% generating an unlevered internal rate of return (IRR) of 10.8%. In addition, the company sold 25 condominium units for an aggregate sale price of $6.1 million and one land parcel for $3.3 million.

During the first nine months of 2008, the company acquired six properties, consisting of 1,837 apartment units, for an aggregate purchase price of $336.9 million at an average cap rate of 5.9%, as well as an uncompleted development property for a purchase price of $31.7 million.

Also during the first nine months of 2008, the company sold 34 properties, consisting of 8,795 apartment units, for an aggregate sale price of $807.0 million at an average cap rate of 5.8% generating an unlevered IRR of 10.8%. In addition, the company sold 98 condominium units for an aggregate sale price of $21.6 million and one land parcel for $3.3 million.

Liquidity

On August 26, 2008 the company announced that it closed a $550 million secured loan originated by Wells Fargo (NYSE: WFC) for repurchase by Fannie Mae (NYSE: FNM). The loan is interest only and matures in 11.5 years with the first 10.5 years fixed and the last year at a floating rate of interest. The all-in effective interest rate is approximately 6%.

The company currently has approximately $450 million of cash and cash equivalents and approximately $1.3 billion available on its unsecured revolving credit facility. The company anticipates having cash and cash equivalents of approximately $660 million and approximately $1.3 billion available on its unsecured revolving credit facility at December 31, 2008. Management believes that these existing funding sources will give the company sufficient liquidity to meet its future funding requirements.

Fourth Quarter 2008 Earnings Guidance

The company has established an FFO guidance range of $0.60 to $0.65 per share for the fourth quarter of 2008. Interest expense is expected to be approximately $0.02 per share higher in the quarter from what the company previously forecasted due to increased LIBOR and tax exempt floating rates of interest. Also, the company has greatly slowed its acquisition efforts while continuing to sell properties which has created substantial liquidity, but will also reduce expected NOI by approximately $0.02 per share in the fourth quarter. The company used a portion of that liquidity to purchase certain of its debt at a substantial discount to par which will add a previously unbudgeted $0.04 per share to its fourth quarter results.

Impact on 2009 Earnings from Adoption of FASB Staff Position APB 14-1

The company will provide guidance for 2009 performance in its fourth quarter 2008 earnings release in February 2009. At this time, it should be noted that the company’s earnings will be reduced by $0.03 to $0.04 per share by the mandatory adoption of FASB Staff Position APB 14-1, which requires companies to expense certain implied costs of the option value related to convertible debt beginning January 1, 2009. The company expects that FFO will be reduced by a similar amount. This non-cash charge will have no material impact on the company’s debt coverage ratios or debt covenants.

Fourth Quarter 2008 Conference Call

Equity Residential expects to announce fourth quarter 2008 results on Wednesday, February 4, 2009 and host a conference call to discuss those results at 10:00 a.m. CT on Thursday, February 5, 2009.

Equity Residential is an S&P 500 company focused on the acquisition, development and management of high quality apartment properties in top U.S. growth markets. Equity Residential owns or has investments in 554 properties located in 23 states and the District of Columbia, consisting of 147,326 apartment units. For more information on Equity Residential, please visit our website at www.equityresidential.com.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential’s management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, competition and local government regulation. Other risks and uncertainties are described under the heading “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityresidential.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 and outlook for 2008 will take place tomorrow, Thursday, October 30, at 10:00 a.m. Central. Please visit the Investor Information section of the company’s web site at www.equityresidential.com for the link. A replay of the web cast will be available for two weeks at this site.

EQUITY RESIDENTIAL
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands except per share data)
(Unaudited)

	Nine Months Ended September 30,				Quarter Ended September 30,
	2008		2007		2008		2007
REVENUES
Rental income	$ 1,566,821		$ 1,440,041		$ 535,932		$ 498,868
Fee and asset management	7,397		6,937		2,387		2,234

Total revenues	1,574,218		1,446,978		538,319		501,102

EXPENSES
Property and maintenance	409,755		378,586		141,555		132,162
Real estate taxes and insurance	162,470		149,521		55,206		49,765
Property management	59,536		68,960		18,902		21,698
Fee and asset management	6,154		6,604		1,983		2,100
Depreciation	437,935		420,347		152,157		143,987
General and administrative	34,040		33,182		9,849		12,366
Impairment	2,800		1,020		2,097		626

Total expenses	1,112,690		1,058,220		381,749		362,704

Operating income	461,528		388,758		156,570		138,398

Interest and other income	11,019		12,335		2,838		6,119
Interest:
Expense incurred, net	(355,035	)	(360,207	)	(120,304	)	(128,214	)
Amortization of deferred financing costs	(6,751	)	(7,853	)	(2,411	)	(2,031	)

Income before income and other taxes, allocation to Minority Interests, income from investments in unconsolidated entities, net gain on sales of unconsolidated entities and land parcels and discontinued operations	110,761		33,033		36,693		14,272
Income and other tax (expense) benefit	(5,941	)	(1,468	)	(1,317	)	(770	)
Allocation to Minority Interests:
Operating Partnership, net	(5,880	)	(856	)	(2,124	)	(417	)
Preference Interests and Units	(11	)	(437	)	(4	)	(3	)
Partially Owned Properties	(1,765	)	(997	)	(106	)	(218	)
Income from investments in unconsolidated entities	60		185		250		548
Net gain on sales of unconsolidated entities	-		2,629		-		2,629
Net gain on sales of land parcels	2,976		5,230		2,976		714
Income from continuing operations, net of minority interests	100,200		37,319		36,368		16,755
Discontinued operations, net of minority interests	351,135		829,026		141,873		440,952
Net income	451,335		866,345		178,241		457,707
Preferred distributions	(10,887	)	(19,157	)	(3,628	)	(4,317	)
Premium on redemption of Preferred Shares	-		(6,144	)	-		(6,144	)
Net income available to Common Shares	$ 440,448		$ 841,044		$ 174,613		$ 447,246

Earnings per share - basic:
Income from continuing operations available to Common Shares	$ 0.33		$ 0.04		$ 0.12		$ 0.02
Net income available to Common Shares	$ 1.63		$ 2.97		$ 0.65		$ 1.64
Weighted average Common Shares outstanding	269,582		282,847		270,345		272,086

Earnings per share - diluted:
Income from continuing operations available to Common Shares	$ 0.33		$ 0.04		$ 0.12		$ 0.02
Net income available to Common Shares	$ 1.62		$ 2.93		$ 0.64		$ 1.62
Weighted average Common Shares outstanding	290,267		306,052		290,795		294,331

Distributions declared per Common Share outstanding	$ 1.4475		$ 1.3875		$ 0.4825		$ 0.4625


EQUITY RESIDENTIAL
CONSOLIDATED STATEMENTS OF FUNDS FROM OPERATIONS
(Amounts in thousands except per share data)
(Unaudited)


	Nine Months Ended September 30,				Quarter Ended September 30,
	2008		2007		2008		2007

Net income	$ 451,335		$ 866,345		$ 178,241		$ 457,707
Allocation to Minority Interests - Operating Partnership, net	5,880		856		2,124		417
Adjustments:
Depreciation	437,935		420,347		152,157		143,987
Depreciation - Non-real estate additions	(6,057	)	(6,137	)	(1,976	)	(1,964	)
Depreciation - Partially Owned and Unconsolidated Properties	3,103		3,262		1,063		1,181
Net gain on sales of unconsolidated entities	-		(2,629	)	-		(2,629	)
Discontinued operations:
Depreciation	10,001		45,688		1,605		10,307
Gain on sales of discontinued operations, net of minority interests	(342,419	)	(793,759	)	(141,135	)	(432,143	)
Net incremental (loss) gain on sales of condominium units	(2,643	)	18,773		447		5,186
Minority Interests - Operating Partnership	576		2,387		48		608

FFO (1)(2)	557,711		555,133		192,574		182,657
Preferred distributions	(10,887	)	(19,157	)	(3,628	)	(4,317	)
Premium on redemption of Preferred Shares	-		(6,144	)	-		(6,144	)

FFO available to Common Shares and OP Units - basic (1) (2)	$ 546,824		$ 529,832		$ 188,946		$ 172,196

FFO available to Common Shares and OP Units - diluted (1) (2)	$ 547,327		$ 530,420		$ 189,108		$ 172,385

FFO per share and OP Unit - basic	$ 1.90		$ 1.75		$ 0.66		$ 0.59

FFO per share and OP Unit - diluted	$ 1.88		$ 1.73		$ 0.65		$ 0.58

Weighted average Common Shares and
OP Units outstanding - basic	287,422		301,986		287,744		290,977

Weighted average Common Shares and
OP Units outstanding - diluted	290,699		306,557		291,215		294,819

(1) The National Association of Real Estate Investment Trusts ("NAREIT") defines funds from operations ("FFO") (April 2002 White Paper) as net income (computed in accordance with accounting principles generally accepted in the United States ("GAAP")), excluding gains (or losses) from sales of depreciable property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis. The April 2002 White Paper states that gain or loss on sales of property is excluded from FFO for previously depreciated operating properties only. Once the Company commences the conversion of units to condominiums, it simultaneously discontinues depreciation of such property. FFO available to Common Shares and OP Units is 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 accounting principles generally accepted in the United States. 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 "Minority Interests - Operating Partnership". Subject to certain restrictions, the Minority Interests - Operating Partnership may exchange their OP Units for EQR Common Shares on a one-for-one basis.

(2) The Company believes that FFO and FFO available to Common Shares and OP 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 related to dispositions of depreciable property and excluding real estate depreciation (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 OP Units can help compare the operating performance of a company's real estate between periods or as compared to different companies. FFO and FFO available to Common Shares and OP 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 and FFO available to Common Shares and OP 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 and FFO available to Common Shares and OP 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.


EQUITY RESIDENTIAL
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands except for share amounts)
(Unaudited)

	September 30,		December 31,
	2008		2007
ASSETS
Investment in real estate
Land	$ 3,653,808		$ 3,607,305
Depreciable property	13,760,599		13,556,681
Projects under development	852,597		828,530
Land held for development	366,822		340,834
Investment in real estate	18,633,826		18,333,350
Accumulated depreciation	(3,422,371	)	(3,170,125	)
Investment in real estate, net	15,211,455		15,163,225

Cash and cash equivalents	530,050		50,831
Investments in unconsolidated entities	3,131		3,547
Deposits - restricted	395,658		253,276
Escrow deposits - mortgage	21,834		20,174
Deferred financing costs, net	54,210		56,271
Other assets	150,986		142,453
Total assets	$ 16,367,324		$ 15,689,777

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage notes payable	$ 4,493,886		$ 3,605,971
Notes, net	5,607,519		5,763,762
Lines of credit	-		139,000
Accounts payable and accrued expenses	173,658		109,385
Accrued interest payable	79,572		124,717
Other liabilities	313,629		322,975
Security deposits	64,066		62,159
Distributions payable	141,629		141,244
Total liabilities	10,873,959		10,269,213

Commitments and contingencies
Minority Interests:
Operating Partnership	310,572		331,626
Preference Interests and Units	184		184
Partially Owned Properties	26,506		26,236
Total Minority Interests	337,262		358,046

Shareholders' equity:
Preferred Shares of beneficial interest, $0.01 par value;
100,000,000 shares authorized; 1,961,975 shares issued
and outstanding as of September 30, 2008 and 1,986,475
shares issued and outstanding as of December 31, 2007	209,049		209,662
Common Shares of beneficial interest, $0.01 par value;
1,000,000,000 shares authorized; 272,022,884 shares issued
and outstanding as of September 30, 2008 and 269,554,661
shares issued and outstanding as of December 31, 2007	2,720		2,696
Paid in capital	4,323,140		4,266,538
Retained earnings	647,871		599,504
Accumulated other comprehensive loss	(26,677	)	(15,882	)
Total shareholders' equity	5,156,103		5,062,518
Total liabilities and shareholders' equity	$ 16,367,324		$ 15,689,777


	EQUITY RESIDENTIAL

	Portfolio Summary
	As of September 30, 2008

	Markets	Properties	Units	% of Total Units	% of 2008 Stabilized NOI	Average Rental Rate (1)

1	New York Metro Area	22	6,246	4.2%	10.3%	$ 2,785
2	DC Northern Virginia	26	8,781	6.0%	8.4%	1,655
3	Los Angeles	38	7,749	5.3%	8.3%	1,789
4	South Florida	39	12,897	8.7%	8.2%	1,288
5	Seattle/Tacoma	49	11,138	7.6%	7.3%	1,354
6	Boston	37	6,217	4.2%	6.3%	1,899
7	San Francisco Bay Area	34	6,731	4.6%	6.1%	1,719
8	Phoenix	41	11,780	8.0%	5.6%	917
9	Denver	25	8,606	5.8%	4.9%	1,028
10	San Diego	14	4,491	3.0%	4.4%	1,659
11	Orlando	26	8,042	5.5%	4.3%	1,028
12	Atlanta	30	9,110	6.2%	4.1%	950
13	Inland Empire, CA	15	4,655	3.2%	3.7%	1,378
14	Suburban Maryland	21	5,559	3.8%	3.3%	1,195
15	Orange County, CA	10	3,307	2.2%	3.2%	1,621
16	New England (excluding Boston)	33	4,925	3.3%	2.6%	1,110
17	Jacksonville	12	3,951	2.7%	1.9%	894
18	Portland, OR	11	3,713	2.5%	1.8%	974
19	Tampa/Ft. Myers	11	3,414	2.3%	1.4%	921
20	Dallas/Ft. Worth	15	3,631	2.5%	1.4%	932

	Top 20 Total	509	134,943	91.6%	97.5%	1,354

21	Raleigh/Durham	12	3,058	2.1%	1.2%	808
22	Central Valley, CA	10	1,621	1.1%	0.8%	1,080
23	Other EQR	17	3,784	2.6%	0.5%	877

	Total	548	143,406	97.4%	100.0%	1,327

	Condominium Conversion	5	189	0.1%	-	-
	Military Housing	1	3,731	2.5%	-	-

	Grand Total	554	147,326	100.0%	100.0%	$ 1,327

(1) Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the month of September 2008.


	EQUITY RESIDENTIAL

Portfolio as of September 30, 2008

		Properties	Units

	Wholly Owned Properties	481	127,440
	Partially Owned Properties:
	Consolidated	28	5,709
	Unconsolidated	44	10,446
	Military Housing (Fee Managed)	1	3,731
		554	147,326

Portfolio Rollforward Q3 2008

				Properties		Units		$ Thousands		Cap Rate

			6/30/2008	564		150,699

	Acquisitions:
		Rental Properties		-		-		-		-
	Dispositions:
		Rental Properties		(11	)	(3,513	)	$ (328,450	)	5.9	%
		Condominium Conversion Properties		-		(25	)	$ (6,146	)
		Land Parcel (one)		-		-		$ (3,300	)
	Completed Developments			1		165

			9/30/2008	554		147,326



Portfolio Rollforward 2008

				Properties		Units		$ Thousands		Cap Rate

			12/31/2007	579		152,821

	Acquisitions:
		Rental Properties		6		1,837		$ 336,863		5.9	%
		Uncompleted Developments (1)		-		-		$ 31,705
	Dispositions:
		Rental Properties		(34	)	(8,795	)	$ (806,999	)	5.8	%
		Condominium Conversion Properties		(3	)	(98	)	$ (21,644	)
		Land Parcel (one)		-		-		$ (3,300	)
	Completed Developments			6		1,558
	Configuration Changes			-		3

			9/30/2008	554		147,326

(1) Represents the acquisition of Mosaic at Metro in Hyattsville, Maryland. See the Consolidated Development Projects on page 20 for further information.


EQUITY RESIDENTIAL

Third Quarter 2008 vs. Third Quarter 2007
Quarter over Quarter Same Store Results/Statistics

$ in Thousands (except for Average Rental Rate) - 122,380 Same Store Units

	Results						Statistics
Description	Revenues		Expenses		NOI (1)		Average Rental Rate (2)		Occupancy		Turnover
Q3 2008	$ 466,810		$ 171,644		$ 295,166		$ 1,348		94.4	%	18.6	%
Q3 2007	$ 451,257		$ 167,271		$ 283,986		$ 1,305		94.3	%	19.1	%
Change	$ 15,553		$ 4,373		$ 11,180		$ 43		0.1	%	(0.5	%)
Change	3.4	%	2.6	%	3.9	%	3.3	%



Third Quarter 2008 vs. Second Quarter 2008
Sequential Quarter over Quarter Same Store Results/Statistics

$ in Thousands (except for Average Rental Rate) - 126,281 Same Store Units

	Results						Statistics
Description	Revenues		Expenses		NOI (1)		Average Rental Rate (2)		Occupancy		Turnover
Q3 2008	$ 486,402		$ 179,356		$ 307,046		$ 1,361		94.4	%	18.7	%
Q2 2008	$ 483,326		$ 175,271		$ 308,055		$ 1,346		94.9	%	16.0	%
Change	$ 3,076		$ 4,085		$ (1,009	)	$ 15		(0.5	%)	2.7	%
Change	0.6	%	2.3	%	(0.3	%)	1.1	%



September YTD 2008 vs. September YTD 2007
YTD over YTD Same Store Results/Statistics

$ in Thousands (except for Average Rental Rate) - 115,713 Same Store Units

	Results						Statistics
Description	Revenues		Expenses		NOI (1)		Average Rental Rate (2)		Occupancy		Turnover
YTD 2008	$1,308,557		$ 478,070		$ 830,487		$ 1,330		94.6	%	48.1	%
YTD 2007	$1,263,482		$ 468,081		$ 795,401		$ 1,283		94.7	%	48.8	%
Change	$ 45,075		$ 9,989		$ 35,086		$ 47		(0.1	%)	(0.7	%)
Change	3.6	%	2.1	%	4.4	%	3.7	%

(1) The Company's primary financial measure for evaluating each of its apartment communities is net operating income ("NOI"). NOI represents rental income less property and maintenance expense, real estate tax and insurance expense, and property management expense. The Company believes that NOI is helpful to investors as a supplemental measure of the operating performance of a real estate company because it is a direct measure of the actual operating results of the Company's apartment communities.

(2) Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period.


EQUITY RESIDENTIAL

Same Store NOI Reconciliation
Third Quarter 2008 vs. Third Quarter 2007

The following table presents a reconciliation of operating income per the consolidated statements of operations to NOI for the Third Quarter 2008 Same Store Properties:

	Quarter Ended September 30,
	2008		2007
	(Amounts in thousands)

Operating income	$ 156,570		$ 138,398
Adjustments:
Non-same store operating results	(25,103	)	(11,257	)
Fee and asset management revenue	(2,387	)	(2,234	)
Fee and asset management expense	1,983		2,100
Depreciation	152,157		143,987
General and administrative	9,849		12,366
Impairment	2,097		626

Same store NOI	$ 295,166		$ 283,986



Same Store NOI Reconciliation
September YTD 2008 vs. September YTD 2007

The following table presents a reconciliation of operating income per the consolidated statements of operations to NOI for the Nine-Month 2008 Same Store Properties:

	Nine Months Ended September 30,
	2008		2007
	(Amounts in thousands)

Operating income	$ 461,528		$ 388,758
Adjustments:
Non-same store operating results	(104,573	)	(47,573	)
Fee and asset management revenue	(7,397	)	(6,937	)
Fee and asset management expense	6,154		6,604
Depreciation	437,935		420,347
General and administrative	34,040		33,182
Impairment	2,800		1,020

Same store NOI	$ 830,487		$ 795,401


EQUITY RESIDENTIAL

Third Quarter 2008 vs. Third Quarter 2007
Same Store Results by Market

								Increase (Decrease) from Prior Year's Quarter
			Q3 2008		Q3 2008	Q3 2008
			% of		Average	Weighted								Average
			Actual		Rental	Average								Rental
	Markets	Units	NOI		Rate (1)	Occupancy %		Revenues		Expenses		NOI		Rate (1)		Occupancy
1	New York Metro Area	5,922	10.4	%	$ 2,727	95.5	%	5.5	%	6.1	%	5.1	%	5.3	%	0.2	%
2	South Florida	11,761	8.6	%	1,305	93.3	%	1.3	%	(0.2	%)	2.3	%	(0.6	%)	1.8	%
3	Los Angeles	6,863	7.7	%	1,773	94.1	%	2.3	%	4.3	%	1.4	%	3.4	%	(1.0	%)
4	Seattle/Tacoma	8,708	7.7	%	1,410	94.8	%	8.6	%	7.1	%	9.5	%	9.6	%	(0.8	%)
5	DC Northern Virginia	6,870	7.1	%	1,554	96.0	%	4.9	%	4.7	%	5.0	%	3.1	%	1.6	%
6	San Francisco Bay Area	6,211	6.8	%	1,711	95.0	%	7.8	%	0.2	%	12.2	%	8.7	%	(0.7	%)
7	Boston	5,805	6.6	%	1,871	95.8	%	2.9	%	3.7	%	2.4	%	2.9	%	0.0	%
8	Phoenix	10,238	5.4	%	919	93.0	%	(1.2	%)	2.8	%	(3.7	%)	(1.4	%)	0.1	%
9	Denver	7,502	4.7	%	1,016	94.9	%	6.3	%	3.5	%	7.9	%	6.1	%	0.2	%
10	San Diego	4,262	4.6	%	1,658	94.7	%	3.8	%	0.8	%	5.3	%	4.5	%	(0.6	%)
11	Orlando	7,525	4.4	%	1,032	93.6	%	(2.3	%)	0.3	%	(4.0	%)	(1.7	%)	(0.6	%)
12	Atlanta	7,926	4.3	%	988	94.8	%	2.1	%	3.0	%	1.4	%	2.6	%	(0.5	%)
13	Inland Empire, CA	4,355	3.6	%	1,380	93.0	%	1.3	%	1.0	%	1.4	%	1.0	%	0.3	%
14	Orange County, CA	3,175	3.4	%	1,628	94.4	%	2.9	%	(1.1	%)	4.8	%	4.4	%	(1.3	%)
15	New England (excluding Boston)	4,925	3.0	%	1,118	94.4	%	1.4	%	3.0	%	0.2	%	1.5	%	(0.1	%)
16	Suburban Maryland	3,687	2.7	%	1,187	94.9	%	11.4	%	0.5	%	18.9	%	7.1	%	3.6	%
17	Portland, OR	3,409	2.0	%	987	94.7	%	3.8	%	0.5	%	6.0	%	5.0	%	(1.1	%)
18	Jacksonville	3,231	1.6	%	895	93.9	%	(3.9	%)	3.0	%	(8.3	%)	(2.9	%)	(1.0	%)
19	Dallas/Ft. Worth	2,601	1.4	%	1,010	95.8	%	5.3	%	6.7	%	4.3	%	4.3	%	0.9	%
20	Tampa	2,581	1.3	%	935	93.8	%	0.6	%	0.5	%	0.6	%	(0.3	%)	0.7	%
	Top 20 Markets	117,557	97.3	%	1,364	94.4	%	3.5	%	2.8	%	3.9	%	3.3	%	0.1	%
	All Other Markets	4,823	2.7	%	954	94.5	%	2.8	%	(2.3	%)	6.3	%	2.6	%	0.1	%
	Total	122,380	100.0	%	$ 1,348	94.4	%	3.4	%	2.6	%	3.9	%	3.3	%	0.1	%

(1) Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period.


EQUITY RESIDENTIAL

Third Quarter 2008 vs. Second Quarter 2008
Sequential Same Store Results by Market

								Increase (Decrease) from Prior Quarter
			Q3 2008		Q3 2008	Q3 2008
			% of		Average	Weighted								Average
			Actual		Rental	Average								Rental
	Markets	Units	NOI		Rate (1)	Occupancy %		Revenues		Expenses		NOI		Rate (1)		Occupancy
1	New York Metro Area	6,246	10.8	%	$ 2,795	95.7	%	1.9	%	1.3	%	2.2	%	1.2	%	0.7	%
2	DC Northern Virginia	8,057	8.7	%	1,675	95.9	%	0.9	%	1.1	%	0.8	%	0.9	%	(0.1	%)
3	South Florida	11,761	8.2	%	1,305	93.3	%	(1.0	%)	(1.2	%)	(0.9	%)	(0.2	%)	(0.7	%)
4	Los Angeles	6,863	7.4	%	1,773	94.1	%	0.2	%	7.1	%	(3.1	%)	1.1	%	(0.9	%)
5	Seattle/Tacoma	8,708	7.3	%	1,410	94.8	%	2.8	%	4.7	%	1.8	%	2.9	%	(0.1	%)
6	San Francisco Bay Area	6,364	6.6	%	1,719	95.0	%	2.2	%	1.7	%	2.5	%	3.0	%	(0.7	%)
7	Boston	5,805	6.4	%	1,871	95.8	%	(0.8	%)	(3.1	%)	0.6	%	(0.5	%)	(0.3	%)
8	Phoenix	10,646	5.4	%	921	93.0	%	(1.9	%)	3.4	%	(5.0	%)	(0.8	%)	(1.0	%)
9	Denver	8,059	4.9	%	1,021	94.9	%	2.6	%	7.2	%	0.2	%	2.9	%	(0.3	%)
10	San Diego	4,491	4.6	%	1,659	94.7	%	2.2	%	4.3	%	1.2	%	1.7	%	0.4	%
11	Orlando	7,525	4.2	%	1,032	93.6	%	(0.5	%)	5.8	%	(4.4	%)	(0.3	%)	(0.2	%)
12	Atlanta	7,926	4.1	%	988	94.8	%	(0.1	%)	2.8	%	(2.2	%)	0.3	%	(0.4	%)
13	Inland Empire, CA	4,355	3.5	%	1,380	93.0	%	(0.6	%)	8.8	%	(5.2	%)	1.6	%	(2.0	%)
14	Orange County, CA	3,175	3.3	%	1,628	94.4	%	1.3	%	1.9	%	1.0	%	1.4	%	(0.1	%)
15	New England (excluding Boston)	4,925	2.8	%	1,118	94.4	%	0.2	%	(4.1	%)	4.0	%	1.0	%	(0.8	%)
16	Suburban Maryland	3,977	2.7	%	1,163	94.7	%	0.6	%	0.7	%	0.6	%	1.3	%	(0.6	%)
17	Portland, OR	3,409	1.9	%	987	94.7	%	1.1	%	2.4	%	0.2	%	1.7	%

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Equity Residential Reports Third Quarter Results