Equity Residential Reports Second Quarter 2020 Results

CHICAGO--()--Equity Residential (NYSE: EQR) today reported results for the quarter and six months ended June 30, 2020.

Second Quarter 2020 Results

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended June 30,

 

 

 

 

 

2020

 

 

2019

 

 

$ Change

 

 

% Change

 

 

 

Earnings Per Share (EPS)

 

$

0.70

 

 

$

0.83

 

 

$

(0.13

)

 

 

(15.7

%)

 

 

Funds from Operations (FFO) per share

 

$

0.86

 

 

$

0.80

 

 

$

0.06

 

 

 

7.5

%

 

 

Normalized FFO per share

 

$

0.86

 

 

$

0.86

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

 

 

2020

 

 

2019

 

 

$ Change

 

 

% Change

 

 

 

Earnings Per Share (EPS)

 

$

1.53

 

 

$

1.11

 

 

$

0.42

 

 

 

37.8

%

 

 

Funds from Operations (FFO) per share

 

$

1.72

 

 

$

1.61

 

 

$

0.11

 

 

 

6.8

%

 

 

Normalized FFO per share

 

$

1.72

 

 

$

1.67

 

 

$

0.05

 

 

 

3.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“These challenging times have brought out the best in the Equity Residential team as we serve our fellow employees, residents and communities. We could not be prouder or more grateful,” said Mark J. Parrell, Equity Residential’s President and CEO. “We see good demand for our apartments, both urban and suburban, but with increased customer price sensitivity, especially in the urban cores of New York, San Francisco and Boston. Looking forward, we believe the rate of improvement in our business will be dictated by how effectively the virus can be controlled and more normal economic activity restored. In the meantime, our strong balance sheet, state of the art operating platform and opportunistic mindset leaves us well positioned to weather the storm and to take advantage should conditions allow.”

Highlights

  • The Company experienced a recovery in demand by late May 2020. Initial leads, Traffic and applications continue to be in-line with the same time last year;
  • During the second quarter of 2020, the Company collected on average 97% of its total monthly Residential rental income. July 2020 collections continue to trend on a similar pace to prior months;
  • Strong expense control, along with continued enhancements in our operating platform, led to a decline in same store expenses for the second quarter;
  • Resident retention was the highest for the second quarter in the Company’s history;
  • The Company sold two properties, totaling 655 apartment units, during the second quarter of 2020 for an aggregate sales price of approximately $384.2 million; and
  • The Company successfully implemented changes to its leasing and service operations as well as the physical layout of its properties as part of its commitment to health and safety. The Company remains focused on further enhancing its existing health and safety standards during the pandemic.

COVID-19

The Company continues to support its residents and employees during the COVID-19 pandemic. The Company is utilizing technology to allow our property teams to interact remotely with current and prospective residents, including a touchless new leasing process and a service process designed to limit contact. We also continue to provide additional paid leave for employees impacted by the pandemic and paid special bonuses to certain on-site employees during the second quarter of 2020 in recognition of their significant efforts. Among other resident support efforts, we have an extensive outreach process for residents financially impacted by the pandemic and have created payment plans to assist them.

Results Per Share

The change in EPS for the quarter ended June 30, 2020 compared to the same period of 2019 is due primarily to lower property sale gains in the second quarter of 2020, the various adjustment items listed on page 25 of this release and the items described below. The change in EPS for the six months ended June 30, 2020 compared to the same period of 2019 is due primarily to higher property sale gains in the first six months of 2020, the various adjustment items listed on page 25 of this release and the items described below.

The per share changes in FFO for both the quarter and six months ended June 30, 2020 compared to the same periods of 2019, are due primarily to the various adjustment items listed on page 25 of this release and the items described below.

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

 

 

Positive/(Negative) Impact

 

 

 

Second Quarter 2020 vs.
Second Quarter 2019

 

 

June YTD 2020 vs.
June YTD 2019

 

Same Store Net Operating Income (NOI)

 

$

(0.04

)

 

$

(0.01

)

Lease-Up NOI

 

 

0.01

 

 

 

0.01

 

2020 and 2019 transaction activity impact on NOI, net

 

 

(0.01

)

 

 

(0.01

)

Interest expense

 

 

0.03

 

 

 

0.06

 

Other items

 

 

0.01

 

 

 

 

Net

 

$

 

 

$

0.05

 

The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 26 through 31 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 6, 28 and 29 of this release.

Same Store Results

The Company has provided a breakout of Residential and Non-Residential same store results on pages 10 and 11 of this release with definitions that can be found on page 30 of this release. Non-Residential operations historically have accounted for approximately 4.0% of total revenues. The table below reflects same store Residential only results for the second quarter 2020 to second quarter 2019 comparison, which includes 74,843 apartment units, as well as for the six months ended June 30, 2020 to six months ended June 30, 2019 comparison, which includes 74,264 apartment units. The Company’s Physical Occupancy was 94.9% compared to 96.5% for the second quarter of 2020 and 2019, respectively, and 95.7% compared to 96.4% for the first six months of 2020 and 2019, respectively.

 

 

Second Quarter 2020 vs.
Second Quarter 2019

 

 

June YTD 2020 vs.
June YTD 2019

 

Revenues

 

(0.9%)

 

 

1.0%

 

Expenses

 

(0.1%)

 

 

1.1%

 

NOI

 

(1.2%)

 

 

0.9%

 

Preliminary July 2020 Residential Same Store Operating Statistics

The following table includes select statistics for the month of July 2020 as well as the second quarter of 2020.

 

 

July 2020

 

 

Second Quarter 2020

 

New Lease Change

 

(8.3%)

 

 

(7.0%)

 

Renewal Rate Achieved

 

(0.9%)

 

 

0.7%

 

Blended Rate (1)

 

(4.5%)

 

 

(2.7%)

 

Physical Occupancy

 

95.0%

 

 

94.9%

 

(1) Blended Rate after applying the effect of new move-in and renewal concessions is approximately (5.5%) and (3.5%) for July 2020 and the second quarter of 2020, respectively, driven by higher usage in the urban cores of New York, San Francisco and Boston.

The July 2020 results listed above are approximately equal to the Company's June 2020 results for New Lease Change, Renewal Rate Achieved and Blended Rate. Concession use is higher in July 2020 than in June 2020.

Investment Activity

The Company sold two apartment properties, consisting of 655 apartment units, during the second quarter of 2020 for an aggregate sales price of approximately $384.2 million at a weighted average Disposition Yield of 4.4%, generating an Unlevered IRR of 8.4%. The properties are located in the San Francisco Bay area and the Washington, D.C. area and were placed under contract prior to March 1, 2020. During the first six months of 2020, the Company sold five properties, consisting of 1,552 apartment units, for an aggregate sales price of approximately $754.4 million at a weighted average Disposition Yield of 4.7%, generating an Unlevered IRR of 10.8%. The Company did not acquire any apartment properties during the first six months of 2020.

Capital Markets Activity

On April 30, 2020, the Company closed on a $495.0 million secured loan. The loan has a ten-year term, is interest only, and carries a fixed interest rate of 2.60%. Proceeds from the loan were used to pay off outstanding balances under the Company’s revolving line of credit and commercial paper program. As of July 28, 2020, the Company had no outstanding balances under its revolving credit facility or commercial paper program and approximately $2.4 billion in available liquidity.

Third Quarter 2020 Earnings and Conference Call

Equity Residential expects to announce its third quarter 2020 results on Tuesday, October 27, 2020 and host a conference call to discuss those results at 10:00 a.m. CT on Wednesday, October 28, 2020.

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 rental apartment properties located in urban and high-density suburban communities where today’s renters want to live, work and play. Equity Residential owns or has investments in 304 properties consisting of 78,410 apartment units, located in Boston, New York, Washington, D.C., Seattle, San Francisco, Southern California and Denver. For more information on Equity Residential, please visit our website at www.equityapartments.com.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential’s management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, competition and local government regulation. In addition, these forward-looking statements are subject to risks related to the COVID-19 pandemic, many of which are unknown, including the duration and severity of the pandemic, the extent of the adverse health impact on the general population and on our residents, customers and employees in particular, its impact on the employment rate and the economy and the corresponding impact on our residents’ and tenants’ ability to pay their rent on time or at all, the extent and impact of governmental responses and the impact of operational changes we have implemented and may implement in response to the pandemic. Other risks and uncertainties are described under the heading “Risk Factors” in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityapartments.com. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

A live web cast of the Company’s conference call discussing these results will take place tomorrow, Wednesday, July 29, 2020 at 10:00 a.m. CT. Please visit the Investor section of the Company’s web site at www.equityapartments.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)

 

 

 

Six Months Ended June 30,

 

 

Quarter Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

1,335,837

 

 

$

1,331,676

 

 

$

653,532

 

 

$

669,374

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and maintenance

 

 

220,268

 

 

 

223,531

 

 

 

104,452

 

 

 

108,461

 

Real estate taxes and insurance

 

 

192,770

 

 

 

182,888

 

 

 

95,038

 

 

 

91,446

 

Property management

 

 

51,317

 

 

 

50,765

 

 

 

23,608

 

 

 

24,369

 

General and administrative

 

 

26,353

 

 

 

29,710

 

 

 

11,835

 

 

 

14,329

 

Depreciation

 

 

418,398

 

 

 

404,723

 

 

 

205,976

 

 

 

200,508

 

Total expenses

 

 

909,106

 

 

 

891,617

 

 

 

440,909

 

 

 

439,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain (loss) on sales of real estate properties

 

 

352,243

 

 

 

138,835

 

 

 

144,266

 

 

 

138,856

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

778,974

 

 

 

578,894

 

 

 

356,889

 

 

 

369,117

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

 

3,471

 

 

 

1,925

 

 

 

1,511

 

 

 

1,152

 

Other expenses

 

 

(4,227

)

 

 

(8,392

)

 

 

(1,694

)

 

 

(5,117

)

Interest:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense incurred, net

 

 

(167,475

)

 

 

(203,840

)

 

 

(81,885

)

 

 

(108,902

)

Amortization of deferred financing costs

 

 

(4,152

)

 

 

(5,783

)

 

 

(2,111

)

 

 

(3,647

)

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

investments in unconsolidated entities and net gain (loss)

on sales of land parcels

 

 

606,591

 

 

 

362,804

 

 

 

272,710

 

 

 

252,603

 

Income and other tax (expense) benefit

 

 

(240

)

 

 

(484

)

 

 

(187

)

 

 

(246

)

Income (loss) from investments in unconsolidated entities

 

 

(2,199

)

 

 

68,058

 

 

 

(1,042

)

 

 

68,765

 

Net gain (loss) on sales of land parcels

 

 

 

 

 

178

 

 

 

 

 

 

177

 

Net income

 

 

604,152

 

 

 

430,556

 

 

 

271,481

 

 

 

321,299

 

Net (income) loss attributable to Noncontrolling Interests:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Partnership

 

 

(21,248

)

 

 

(15,429

)

 

 

(9,713

)

 

 

(11,510

)

Partially Owned Properties

 

 

(13,410

)

 

 

(1,620

)

 

 

(880

)

 

 

(821

)

Net income attributable to controlling interests

 

 

569,494

 

 

 

413,507

 

 

 

260,888

 

 

 

308,968

 

Preferred distributions

 

 

(1,545

)

 

 

(1,545

)

 

 

(772

)

 

 

(772

)

Net income available to Common Shares

 

$

567,949

 

 

$

411,962

 

 

$

260,116

 

 

$

308,196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

1.53

 

 

$

1.11

 

 

$

0.70

 

 

$

0.83

 

Weighted average Common Shares outstanding

 

 

371,689

 

 

 

369,952

 

 

 

371,795

 

 

 

370,342

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

1.53

 

 

$

1.11

 

 

$

0.70

 

 

$

0.83

 

Weighted average Common Shares outstanding

 

 

386,272

 

 

 

385,644

 

 

 

385,913

 

 

 

386,107

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions declared per Common Share outstanding

 

$

1.205

 

 

$

1.135

 

 

$

0.6025

 

 

$

0.5675

 

 

Equity Residential

Consolidated Statements of Funds From Operations and Normalized Funds From Operations

(Amounts in thousands except per share data)

(Unaudited)

 

 

 

Six Months Ended June 30,

 

 

Quarter Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net income

 

$

604,152

 

 

$

430,556

 

 

$

271,481

 

 

$

321,299

 

Net (income) loss attributable to Noncontrolling Interests – Partially

Owned Properties

 

 

(13,410

)

 

 

(1,620

)

 

 

(880

)

 

 

(821

)

Preferred distributions

 

 

(1,545

)

 

 

(1,545

)

 

 

(772

)

 

 

(772

)

Net income available to Common Shares and Units

 

 

589,197

 

 

 

427,391

 

 

 

269,829

 

 

 

319,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

418,398

 

 

 

404,723

 

 

 

205,976

 

 

 

200,508

 

Depreciation – Non-real estate additions

 

 

(2,307

)

 

 

(2,303

)

 

 

(1,020

)

 

 

(1,121

)

Depreciation – Partially Owned Properties

 

 

(1,686

)

 

 

(1,802

)

 

 

(830

)

 

 

(899

)

Depreciation – Unconsolidated Properties

 

 

1,224

 

 

 

1,772

 

 

 

611

 

 

 

850

 

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

assets

 

 

 

 

 

(69,522

)

 

 

 

 

 

(69,522

)

Net (gain) loss on sales of real estate properties

 

 

(352,243

)

 

 

(138,835

)

 

 

(144,266

)

 

 

(138,856

)

Noncontrolling Interests share of gain (loss) on sales

of real estate properties

 

 

11,655

 

 

 

 

 

 

 

 

 

 

FFO available to Common Shares and Units

 

 

664,238

 

 

 

621,424

 

 

 

330,300

 

 

 

310,666

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments (see note for additional detail):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment – non-operating assets

 

 

 

 

 

 

 

 

 

 

 

 

Write-off of pursuit costs

 

 

3,278

 

 

 

2,987

 

 

 

1,651

 

 

 

1,539

 

Debt extinguishment and preferred share redemption (gains)

losses

 

 

32

 

 

 

16,647

 

 

 

32

 

 

 

16,647

 

Non-operating asset (gains) losses

 

 

670

 

 

 

252

 

 

 

229

 

 

 

23

 

Other miscellaneous items

 

 

(2,310

)

 

 

4,418

 

 

 

(1,392

)

 

 

2,843

 

Normalized FFO available to Common Shares and Units

 

$

665,908

 

 

$

645,728

 

 

$

330,820

 

 

$

331,718

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

$

665,783

 

 

$

622,969

 

 

$

331,072

 

 

$

311,438

 

Preferred distributions

 

 

(1,545

)

 

 

(1,545

)

 

 

(772

)

 

 

(772

)

FFO available to Common Shares and Units

 

$

664,238

 

 

$

621,424

 

 

$

330,300

 

 

$

310,666

 

FFO per share and Unit – basic

 

$

1.73

 

 

$

1.62

 

 

$

0.86

 

 

$

0.81

 

FFO per share and Unit – diluted

 

$

1.72

 

 

$

1.61

 

 

$

0.86

 

 

$

0.80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Normalized FFO

 

$

667,453

 

 

$

647,273

 

 

$

331,592

 

 

$

332,490

 

Preferred distributions

 

 

(1,545

)

 

 

(1,545

)

 

 

(772

)

 

 

(772

)

Normalized FFO available to Common Shares and Units

 

$

665,908

 

 

$

645,728

 

 

$

330,820

 

 

$

331,718

 

Normalized FFO per share and Unit – basic

 

$

1.73

 

 

$

1.69

 

 

$

0.86

 

 

$

0.87

 

Normalized FFO per share and Unit – diluted

 

$

1.72

 

 

$

1.67

 

 

$

0.86

 

 

$

0.86

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average Common Shares and Units outstanding – basic

 

 

384,702

 

 

 

382,854

 

 

 

384,818

 

 

 

383,227

 

Weighted average Common Shares and Units outstanding – diluted

 

 

386,272

 

 

 

385,644

 

 

 

385,913

 

 

 

386,107

 

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

Equity Residential

Consolidated Balance Sheets

(Amounts in thousands except for share amounts)

(Unaudited)

 

 

 

June 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

Land

 

$

5,789,307

 

 

$

5,936,188

 

Depreciable property

 

 

20,997,903

 

 

 

21,319,101

 

Projects under development

 

 

274,825

 

 

 

181,630

 

Land held for development

 

 

102,361

 

 

 

96,688

 

Investment in real estate

 

 

27,164,396

 

 

 

27,533,607

 

Accumulated depreciation

 

 

(7,537,713

)

 

 

(7,276,786

)

Investment in real estate, net

 

 

19,626,683

 

 

 

20,256,821

 

Investments in unconsolidated entities

 

 

55,310

 

 

 

52,238

 

Cash and cash equivalents

 

 

187,416

 

 

 

45,753

 

Restricted deposits

 

 

58,117

 

 

 

71,246

 

Right-of-use assets

 

 

505,077

 

 

 

512,774

 

Other assets

 

 

282,348

 

 

 

233,937

 

Total assets

 

$

20,714,951

 

 

$

21,172,769

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Mortgage notes payable, net

 

$

2,340,757

 

 

$

1,941,610

 

Notes, net

 

 

6,081,102

 

 

 

6,077,513

 

Line of credit and commercial paper

 

 

 

 

 

1,017,833

 

Accounts payable and accrued expenses

 

 

109,776

 

 

 

94,350

 

Accrued interest payable

 

 

67,589

 

 

 

66,852

 

Lease liabilities

 

 

330,135

 

 

 

331,334

 

Other liabilities

 

 

315,208

 

 

 

346,963

 

Security deposits

 

 

64,005

 

 

 

70,062

 

Distributions payable

 

 

232,208

 

 

 

218,326

 

Total liabilities

 

 

9,540,780

 

 

 

10,164,843

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable Noncontrolling Interests – Operating Partnership

 

 

336,695

 

 

 

463,400

 

Equity:

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

Preferred Shares of beneficial interest, $0.01 par value;

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

outstanding as of June 30, 2020 and December 31, 2019

 

 

37,280

 

 

 

37,280

 

Common Shares of beneficial interest, $0.01 par value;

1,000,000,000 shares authorized; 372,209,012 shares issued

and outstanding as of June 30, 2020 and 371,670,884

shares issued and outstanding as of December 31, 2019

 

 

3,722

 

 

 

3,717

 

Paid in capital

 

 

9,118,332

 

 

 

8,965,577

 

Retained earnings

 

 

1,505,694

 

 

 

1,386,495

 

Accumulated other comprehensive income (loss)

 

 

(67,355

)

 

 

(77,563

)

Total shareholders’ equity

 

 

10,597,673

 

 

 

10,315,506

 

Noncontrolling Interests:

 

 

 

 

 

 

 

 

Operating Partnership

 

 

235,169

 

 

 

227,837

 

Partially Owned Properties

 

 

4,634

 

 

 

1,183

 

Total Noncontrolling Interests

 

 

239,803

 

 

 

229,020

 

Total equity

 

 

10,837,476

 

 

 

10,544,526

 

Total liabilities and equity

 

$

20,714,951

 

 

$

21,172,769

 

 

Equity Residential

Portfolio Summary

As of June 30, 2020

 

% of

 

 

 

 

 

 

 

 

 

 

Stabilized

 

 

Average

 

 

 

 

 

 

 

Apartment

 

 

Budgeted

 

 

Rental

 

Markets/Metro Areas

 

Properties

 

 

Units

 

 

NOI

 

 

Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

72

 

 

 

16,603

 

 

 

19.1

%

 

$

2,590

 

Orange County

 

 

13

 

 

 

4,028

 

 

 

4.4

%

 

 

2,263

 

San Diego

 

 

12

 

 

 

3,385

 

 

 

3.8

%

 

 

2,426

 

Subtotal – Southern California

 

 

97

 

 

 

24,016

 

 

 

27.3

%

 

 

2,511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

48

 

 

 

12,707

 

 

 

19.8

%

 

 

3,320

 

Washington DC

 

 

47

 

 

 

14,731

 

 

 

15.8

%

 

 

2,458

 

New York

 

 

37

 

 

 

9,606

 

 

 

14.6

%

 

 

3,909

 

Seattle

 

 

45

 

 

 

9,296

 

 

 

10.9

%

 

 

2,466

 

Boston

 

 

25

 

 

 

6,430

 

 

 

10.1

%

 

 

3,173

 

Denver

 

 

5

 

 

 

1,624

 

 

 

1.5

%

 

 

2,048

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

304

 

 

 

78,410

 

 

 

100.0

%

 

$

2,841

 

 

 

Properties

 

 

Apartment Units

 

 

 

 

 

 

 

 

 

 

Wholly Owned Properties

 

 

287

 

 

 

74,849

 

Master-Leased Properties – Consolidated

 

 

1

 

 

 

162

 

Partially Owned Properties – Consolidated

 

 

16

 

 

 

3,399

 

 

 

 

 

 

 

 

 

 

 

 

 

304

 

 

 

78,410

 

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

Equity Residential

Portfolio Rollforward Q2 2020

($ in thousands)

 

Apartment

Disposition

 

 

 

 

Properties

 

 

Units

 

 

Sales Price

 

 

Yield

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3/31/2020

 

 

306

 

 

 

79,065

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dispositions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties

 

 

 

 

(2

)

 

 

(655

)

 

$

(384,161

)

 

 

(4.4

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6/30/2020

 

 

304

 

 

 

78,410

 

 

 

 

 

 

 

 

 

 

Portfolio Rollforward 2020

($ in thousands)

 

Apartment

Disposition

 

 

 

 

Properties

 

 

Units

 

 

Sales Price

 

 

Yield

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12/31/2019

 

 

309

 

 

 

79,962

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dispositions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Rental Properties

 

 

 

 

(5

)

 

 

(1,552

)

 

$

(754,361

)

 

 

(4.7

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6/30/2020

 

 

304

 

 

 

78,410

 

 

 

 

 

 

 

 

 

 

Equity Residential

Second Quarter 2020 vs. Second Quarter 2019

Same Store Results/Statistics Including 74,843 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

Second Quarter 2020

 

 

Second Quarter 2019

 

 

 

Residential

 

 

%
Change

 

 

Non-
Residential

 

 

%
Change

 

 

Total

 

 

%
Change

 

 

 

 

Residential

 

 

Non-
Residential

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

608,739

 

 

(0.9%)

 

 

$

14,536

 

(1)

(39.1%)

 

 

$

623,275

 

 

(2.3%)

 

 

Revenues

 

$

614,049

 

 

$

23,866

 

 

$

637,915

 

Expenses

 

$

184,824

 

 

(0.1%)

 

 

$

5,197

 

 

(1.0%)

 

 

$

190,021

 

 

(0.1%)

 

 

Expenses

 

$

185,025

 

 

$

5,252

 

 

$

190,277

 

NOI

 

$

423,915

 

 

(1.2%)

 

 

$

9,339

 

 

(49.8%)

 

 

$

433,254

 

 

(3.2%)

 

 

NOI

 

$

429,024

 

 

$

18,614

 

 

$

447,638

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

$

2,860

 

 

0.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

$

2,836

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

94.9

%

 

(1.6%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

96.5

%

 

 

 

 

 

 

 

 

Turnover

 

11.8

%

 

(1.3%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Turnover

 

13.1

%

 

 

 

 

 

 

 

 

Second Quarter 2020 vs. First Quarter 2020

Same Store Results/Statistics Including 77,809 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

 

Second Quarter 2020

 

 

First Quarter 2020

 

 

 

Residential

 

 

%
Change

 

 

Non-
Residential

 

 

%
Change

 

 

Total

 

 

%
Change

 

 

 

 

Residential

 

 

Non-
Residential

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

629,340

 

 

(2.4%)

 

 

$

14,766

 

(1)

(37.1%)

 

 

$

644,106

 

 

(3.6%)

 

 

Revenues

 

$

644,487

 

 

$

23,487

 

 

$

667,974

 

Expenses

 

$

191,372

 

 

(4.5%)

 

 

$

5,271

 

 

(11.1%)

 

 

$

196,643

 

 

(4.7%)

 

 

Expenses

 

$

200,347

 

 

$

5,932

 

 

$

206,279

 

NOI

 

$

437,968

 

 

(1.4%)

 

 

$

9,495

 

 

(45.9%)

 

 

$

447,463

 

 

(3.1%)

 

 

NOI

 

$

444,140

 

 

$

17,555

 

 

$

461,695

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

$

2,845

 

 

(0.7%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

$

2,866

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

94.8

%

 

(1.6%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

96.4

%

 

 

 

 

 

 

 

 

Turnover

 

11.9

%

 

2.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Turnover

 

9.8

%

 

 

 

 

 

 

 

 

(1)

Non-Residential operations have been more significantly impacted by the COVID-19 pandemic than the Company’s core Residential business. The decline in Non-Residential revenues is primarily driven by lower public parking income, deferral/abatement of rent and higher bad debt expense.

Note: See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for reconciliations from operating income.

Equity Residential

June YTD 2020 vs. June YTD 2019

Same Store Results/Statistics Including 74,264 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

June YTD 2020

 

 

June YTD 2019

 

 

 

Residential

 

 

%
Change

 

 

Non-
Residential

 

 

%
Change

 

 

Total

 

 

%
Change

 

 

 

 

Residential

 

 

Non-
Residential

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,223,361

 

 

1.0%

 

 

$

37,464

 

(1)

(20.4%)

 

 

$

1,260,825

 

 

0.2%

 

 

Revenues

 

$

1,211,210

 

 

$

47,051

 

 

$

1,258,261

 

Expenses

 

$

375,710

 

 

1.1%

 

 

$

11,032

 

 

3.4%

 

 

$

386,742

 

 

1.2%

 

 

Expenses

 

$

371,517

 

 

$

10,671

 

 

$

382,188

 

NOI

 

$

847,651

 

 

0.9%

 

 

$

26,432

 

 

(27.3%)

 

 

$

874,083

 

 

(0.2%)

 

 

NOI

 

$

839,693

 

 

$

36,380

 

 

$

876,073

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

$

2,871

 

 

1.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Rental Rate

$

2,821

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

95.7

%

 

(0.7%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical Occupancy

 

96.4

%

 

 

 

 

 

 

 

 

Turnover

 

21.4

%

 

(1.9%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Turnover

 

23.3

%

 

 

 

 

 

 

 

 

(1)

Non-Residential operations have been more significantly impacted by the COVID-19 pandemic than the Company’s core Residential business. The decline in Non-Residential revenues is primarily driven by lower public parking income, deferral/abatement of rent and higher bad debt expense.

Note: See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for reconciliations from operating income.

 

Same Store Resident/Tenant Accounts Receivable Balances

Including 74,264 Same Store Apartment Units

$ in thousands

 

 

 

Residential

 

 

Non-Residential

 

 

 

June 30, 2020

 

 

March 31, 2020

 

 

June 30, 2020

 

 

March 31, 2020

 

Resident/tenant accounts receivable balances

$

18,175

 

 

$

5,358

 

 

$

4,815

 

 

$

2,270

 

Allowance for doubtful accounts

 

(6,518

)

 

 

(1,850

)

 

 

(2,416

)

 

 

(1,532

)

Net receivable balances

$

11,657

 

(2)

$

3,508

 

 

$

2,399

 

 

$

738

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line receivable balances

 

$

2,990

 

 

$

1,633

 

 

$

24,161

 

 

$

26,154

 

(2)

The Company held Residential security deposits approximating 20% of the net receivable balance at June 30, 2020.

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

Equity Residential

Second Quarter 2020 vs. Second Quarter 2019

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Year's Quarter

 

Markets/Metro Areas

 

Apartment
Units

 

 

Q2 2020
% of
Actual
NOI

 

 

Q2 2020
Average
Rental
Rate

 

 

Q2 2020
Weighted
Average
Physical
Occupancy %

 

 

Q2 2020
Turnover

 

 

Revenues

 

 

Expenses

 

 

NOI

 

 

Average
Rental
Rate

 

 

Physical
Occupancy

 

 

Turnover

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

15,968

 

 

 

19.5

%

 

$

2,596

 

 

 

94.7

%

 

 

11.9

%

 

 

(1.9

%)

 

 

(1.7

%)

 

 

(1.9

%)

 

 

(0.2

%)

 

 

(1.6

%)

 

 

(2.2

%)

Orange County

 

 

4,028

 

 

 

4.8

%

 

 

2,263

 

 

 

96.3

%

 

 

9.8

%

 

 

1.0

%

 

 

(0.2

%)

 

 

1.4

%

 

 

1.2

%

 

 

(0.1

%)

 

 

(3.9

%)

San Diego

 

 

3,385

 

 

 

4.2

%

 

 

2,426

 

 

 

96.0

%

 

 

11.8

%

 

 

0.4

%

 

 

1.8

%

 

 

(0.1

%)

 

 

1.2

%

 

 

(0.7

%)

 

 

(2.5

%)

Subtotal – Southern California

 

 

23,381

 

 

 

28.5

%

 

 

2,513

 

 

 

95.1

%

 

 

11.5

%

 

 

(1.1

%)

 

 

(1.1

%)

 

 

(1.1

%)

 

 

0.1

%

 

 

(1.3

%)

 

 

(2.6

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

12,183

 

 

 

20.4

%

 

 

3,324

 

 

 

94.9

%

 

 

11.6

%

 

 

(0.8

%)

 

 

2.0

%

 

 

(1.7

%)

 

 

0.5

%

 

 

(1.2

%)

 

 

(1.7

%)

Washington DC

 

 

13,711

 

 

 

16.1

%

 

 

2,465

 

 

 

95.4

%

 

 

11.3

%

 

 

0.1

%

 

 

(2.4

%)

 

 

1.1

%

 

 

1.5

%

 

 

(1.4

%)

 

 

(0.9

%)

New York

 

 

9,606

 

 

 

14.1

%

 

 

3,909

 

 

 

94.1

%

 

 

11.5

%

 

 

(2.7

%)

 

 

1.0

%

 

 

(5.4

%)

 

 

0.4

%

 

 

(3.0

%)

 

 

1.2

%

Seattle

 

 

8,616

 

 

 

10.2

%

 

 

2,469

 

 

 

95.4

%

 

 

11.6

%

 

 

2.2

%

 

 

3.1

%

 

 

1.8

%

 

 

3.4

%

 

 

(1.2

%)

 

 

(3.5

%)

Boston

 

 

6,346

 

 

 

9.6

%

 

 

3,174

 

 

 

93.5

%

 

 

13.7

%

 

 

(1.2

%)

 

 

(2.8

%)

 

 

(0.6

%)

 

 

1.9

%

 

 

(2.9

%)

 

 

1.3

%

Denver

 

 

1,000

 

 

 

1.1

%

 

 

2,173

 

 

 

93.2

%

 

 

17.1

%

 

 

(3.7

%)

 

 

(5.6

%)

 

 

(2.9

%)

 

 

(1.2

%)

 

 

(2.4

%)

 

 

0.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

74,843

 

 

 

100.0

%

 

$

2,860

 

 

 

94.9

%

 

 

11.8

%

 

 

(0.9

%)

 

 

(0.1

%)

 

 

(1.2

%)

 

 

0.8

%

 

 

(1.6

%)

 

 

(1.3

%)

Note: The above table reflects Residential same store results only, which historically account for approximately 96.0% of total revenues.

Equity Residential

Second Quarter 2020 vs. First Quarter 2020

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Quarter

 

Markets/Metro Areas

 

Apartment
Units

 

 

Q2 2020
% of
Actual
NOI

 

 

Q2 2020
Average
Rental
Rate

 

 

Q2 2020
Weighted
Average
Physical
Occupancy %

 

 

Q2 2020
Turnover

 

 

Revenues

 

 

Expenses

 

 

NOI

 

 

Average
Rental
Rate

 

 

Physical
Occupancy

 

 

Turnover

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

16,603

 

 

 

19.5

%

 

$

2,590

 

 

 

94.6

%

 

 

12.1

%

 

 

(3.1

%)

 

 

(5.1

%)

 

 

(2.3

%)

 

 

(1.7

%)

 

 

(1.3

%)

 

 

0.8

%

Orange County

 

 

4,028

 

 

 

4.7

%

 

 

2,263

 

 

 

96.3

%

 

 

9.8

%

 

 

(1.4

%)

 

 

(4.2

%)

 

 

(0.5

%)

 

 

(0.8

%)

 

 

(0.5

%)

 

 

0.8

%

San Diego

 

 

3,385

 

 

 

4.0

%

 

 

2,426

 

 

 

96.0

%

 

 

11.8

%

 

 

(1.4

%)

 

 

(3.3

%)

 

 

(0.8

%)

 

 

(0.7

%)

 

 

(0.8

%)

 

 

(0.2

%)

Subtotal – Southern California

 

 

24,016

 

 

 

28.2

%

 

 

2,511

 

 

 

95.1

%

 

 

11.6

%

 

 

(2.6

%)

 

 

(4.8

%)

 

 

(1.8

%)

 

 

(1.5

%)

 

 

(1.1

%)

 

 

0.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

12,707

 

 

 

20.5

%

 

 

3,320

 

 

 

94.8

%

 

 

11.7

%

 

 

(2.5

%)

 

 

(3.5

%)

 

 

(2.2

%)

 

 

(0.6

%)

 

 

(1.9

%)

 

 

2.0

%

Washington DC

 

 

14,569

 

 

 

16.5

%

 

 

2,458

 

 

 

95.4

%

 

 

11.3

%

 

 

(0.6

%)

 

 

(6.0

%)

 

 

1.8

%

 

 

0.3

%

 

 

(0.8

%)

 

 

2.7

%

New York

 

 

9,606

 

 

 

13.6

%

 

 

3,909

 

 

 

94.1

%

 

 

11.5

%

 

 

(3.5

%)

 

 

(6.2

%)

 

 

(1.3

%)

 

 

(0.9

%)

 

 

(2.6

%)

 

 

4.3

%

Seattle

 

 

8,941

 

 

 

10.3

%

 

 

2,480

 

 

 

95.3

%

 

 

11.7

%

 

 

(1.9

%)

 

 

3.4

%

 

 

(3.8

%)

 

 

(0.1

%)

 

 

(1.8

%)

 

 

0.6

%

Boston

 

 

6,346

 

 

 

9.3

%

 

 

3,174

 

 

 

93.5

%

 

 

13.7

%

 

 

(2.7

%)

 

 

(5.7

%)

 

 

(1.4

%)

 

 

(0.2

%)

 

 

(2.3

%)

 

 

4.6

%

Denver

 

 

1,624

 

 

 

1.6

%

 

 

2,048

 

 

 

94.1

%

 

 

17.1

%

 

 

(1.8

%)

 

 

(5.6

%)

 

 

(0.3

%)

 

 

(0.3

%)

 

 

(1.4

%)

 

 

2.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

77,809

 

 

 

100.0

%

 

$

2,845

 

 

 

94.8

%

 

 

11.9

%

 

 

(2.4

%)

 

 

(4.5

%)

 

 

(1.4

%)

 

 

(0.7

%)

 

 

(1.6

%)

 

 

2.1

%

Note: The above table reflects Residential same store results only, which historically account for approximately 96.0% of total revenues.

Equity Residential

June YTD 2020 vs. June YTD 2019

Same Store Residential Results/Statistics by Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) from Prior Year

 

Markets/Metro Areas

 

Apartment

Units

 

 

June YTD 20
% of
Actual
NOI

 

 

June YTD 20
Average
Rental
Rate

 

 

June YTD 20
Weighted
Average
Physical
Occupancy %

 

 

June YTD 20

Turnover

 

 

Revenues

 

 

Expenses

 

 

NOI

 

 

Average
Rental
Rate

 

 

Physical
Occupancy

 

 

Turnover

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

15,968

 

 

 

19.7

%

 

$

2,615

 

 

 

95.3

%

 

 

23.2

%

 

 

0.1

%

 

 

(0.3

%)

 

 

0.2

%

 

 

1.0

%

 

 

(0.9

%)

 

 

(2.6

%)

Orange County

 

 

4,028

 

 

 

4.8

%

 

 

2,272

 

 

 

96.6

%

 

 

18.8

%

 

 

2.2

%

 

 

0.2

%

 

 

2.8

%

 

 

2.0

%

 

 

0.2

%

 

 

(5.4

%)

San Diego

 

 

3,385

 

 

 

4.2

%

 

 

2,435

 

 

 

96.4

%

 

 

23.7

%

 

 

1.9

%

 

 

2.1

%

 

 

1.9

%

 

 

2.0

%

 

 

0.0

%

 

 

(2.7

%)

Subtotal – Southern California

 

 

23,381

 

 

 

28.7

%

 

 

2,529

 

 

 

95.7

%

 

 

22.5

%

 

 

0.7

%

 

 

0.1

%

 

 

0.9

%

 

 

1.3

%

 

 

(0.6

%)

 

 

(3.1

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

12,183

 

 

 

20.7

%

 

 

3,334

 

 

 

95.8

%

 

 

21.1

%

 

 

1.1

%

 

 

2.9

%

 

 

0.5

%

 

 

1.7

%

 

 

(0.6

%)

 

 

(1.9

%)

Washington DC

 

 

13,711

 

 

 

16.0

%

 

 

2,463

 

 

 

95.9

%

 

 

19.8

%

 

 

1.3

%

 

 

(0.1

%)

 

 

1.9

%

 

 

2.1

%

 

 

(0.7

%)

 

 

(0.8

%)

New York

 

 

9,475

 

 

 

14.0

%

 

 

3,930

 

 

 

95.4

%

 

 

18.7

%

 

 

(0.3

%)

 

 

2.4

%

 

 

(2.4

%)

 

 

1.1

%

 

 

(1.3

%)

 

 

0.4

%

Seattle

 

 

8,442

 

 

 

10.2

%

 

 

2,469

 

 

 

96.3

%

 

 

22.9

%

 

 

3.8

%

 

 

2.7

%

 

 

4.2

%

 

 

3.9

%

 

 

(0.1

%)

 

 

(5.1

%)

Boston

 

 

6,346

 

 

 

9.7

%

 

 

3,178

 

 

 

94.7

%

 

 

22.7

%

 

 

1.0

%

 

 

(1.9

%)

 

 

2.2

%

 

 

2.6

%

 

 

(1.4

%)

 

 

1.2

%

Denver

 

 

726

 

 

 

0.7

%

 

 

2,133

 

 

 

94.5

%

 

 

30.6

%

 

 

(1.2

%)

 

 

(0.3

%)

 

 

(1.5

%)

 

 

0.6

%

 

 

(1.9

%)

 

 

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

74,264

 

 

 

100.0

%

 

$

2,871

 

 

 

95.7

%

 

 

21.4

%

 

 

1.0

%

 

 

1.1

%

 

 

0.9

%

 

 

1.8

%

 

 

(0.7

%)

 

 

(1.9

%)

Note: The above table reflects Residential same store results only, which historically account for approximately 96.0% of total revenues.

Equity Residential

Same Store Residential Lease Pricing Statistics

For 74,264 Same Store Apartment Units

 

 

 

New Lease Change (1)

 

 

Renewal Rate Achieved (1)

 

 

Blended Rate (1)

 

Markets/Metro Areas

 

Q2 2020

 

 

Q2 2019

 

 

Q2 2020

 

 

Q2 2019

 

 

Q2 2020

 

 

Q2 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

 

(6.7

%)

 

 

0.4

%

 

 

0.4

%

 

 

5.2

%

 

 

(3.0

%)

 

 

2.7

%

Orange County

 

 

(5.1

%)

 

 

1.8

%

 

 

0.9

%

 

 

6.0

%

 

 

(1.5

%)

 

 

4.0

%

San Diego

 

 

(3.5

%)

 

 

3.4

%

 

 

0.1

%

 

 

6.0

%

 

 

(1.5

%)

 

 

4.6

%

Subtotal – Southern California

 

 

(6.0

%)

 

 

1.1

%

 

 

0.5

%

 

 

5.4

%

 

 

(2.6

%)

 

 

3.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

(9.6

%)

 

 

4.5

%

 

 

(0.5

%)

 

 

5.6

%

 

 

(4.6

%)

 

 

5.1

%

Washington DC

 

 

(5.3

%)

 

 

2.5

%

 

 

1.2

%

 

 

4.5

%

 

 

(1.6

%)

 

 

3.5

%

New York

 

 

(8.0

%)

 

 

0.7

%

 

 

1.2

%

 

 

4.0

%

 

 

(2.0

%)

 

 

2.7

%

Seattle

 

 

(3.4

%)

 

 

2.9

%

 

 

0.7

%

 

 

5.6

%

 

 

(0.8

%)

 

 

4.3

%

Boston

 

 

(9.6

%)

 

 

3.1

%

 

 

1.4

%

 

 

5.3

%

 

 

(3.9

%)

 

 

4.2

%

Denver

 

 

(2.8

%)

 

 

2.5

%

 

 

1.1

%

 

 

4.4

%

 

 

(1.3

%)

 

 

3.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

(7.0

%)

 

 

2.3

%

 

 

0.7

%

 

 

5.0

%

 

 

(2.7

%)

(2)

 

3.7

%

(1)

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

(2)

Blended Rate after applying the effect of new move-in and renewal concessions is approximately (3.5%) for Q2 2020, driven by higher usage in the urban cores of New York, San Francisco and Boston. The effect of new move-in and renewal concessions in Q2 2019 was immaterial.

Equity Residential

Second Quarter 2020 vs. Second Quarter 2019

Total Same Store Operating Expenses Including 74,843 Same Store Apartment Units

$ in thousands

 

 

 

Actual
Q2 2020

 

 

Actual
Q2 2019

 

 

$
Change (1)

 

 

%
Change

 

 

% of Actual
Q2 2020
Operating
Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate taxes

 

$

85,433

 

 

$

82,534

 

 

$

2,899

 

 

 

3.5

%

 

 

45.0

%

On-site payroll

 

 

39,861

 

 

 

40,827

 

 

 

(966

)

 

 

(2.4

%)

 

 

21.0

%

Utilities

 

 

24,018

 

 

 

23,756

 

 

 

262

 

 

 

1.1

%

 

 

12.6

%

Repairs and maintenance

 

 

21,977

 

 

 

24,799

 

 

 

(2,822

)

 

 

(11.4

%)

 

 

11.6

%

Insurance

 

 

6,125

 

 

 

5,209

 

 

 

916

 

 

 

17.6

%

 

 

3.2

%

Leasing and advertising

 

 

2,150

 

 

 

2,473

 

 

 

(323

)

 

 

(13.1

%)

 

 

1.1

%

Other on-site operating expenses

 

 

10,457

 

 

 

10,679

 

 

 

(222

)

 

 

(2.1

%)

 

 

5.5

%

Total Same Store Operating Expenses (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(includes Residential and Non-Residential)

 

$

190,021

 

 

$

190,277

 

 

$

(256

)

 

 

(0.1

%)

 

 

100.0

%

June YTD 2020 vs. June YTD 2019

Total Same Store Operating Expenses Including 74,264 Same Store Apartment Units

$ in thousands

 

 

 

Actual
YTD 2020

 

 

Actual
YTD 2019

 

 

$
Change (1)

 

 

%
Change

 

 

% of Actual
YTD 2020
Operating
Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate taxes

 

$

170,416

 

 

$

164,075

 

 

$

6,341

 

 

 

3.9

%

 

 

44.1

%

On-site payroll

 

 

81,249

 

 

 

81,757

 

 

 

(508

)

 

 

(0.6

%)

 

 

21.0

%

Utilities

 

 

50,654

 

 

 

49,787

 

 

 

867

 

 

 

1.7

%

 

 

13.1

%

Repairs and maintenance

 

 

44,497

 

 

 

48,027

 

 

 

(3,530

)

 

 

(7.4

%)

 

 

11.5

%

Insurance

 

 

12,187

 

 

 

10,365

 

 

 

1,822

 

 

 

17.6

%

 

 

3.2

%

Leasing and advertising

 

 

4,385

 

 

 

4,917

 

 

 

(532

)

 

 

(10.8

%)

 

 

1.1

%

Other on-site operating expenses

 

 

23,354

 

 

 

23,260

 

 

 

94

 

 

 

0.4

%

 

 

6.0

%

Total Same Store Operating Expenses (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(includes Residential and Non-Residential)

 

$

386,742

 

 

$

382,188

 

 

$

4,554

 

 

 

1.2

%

 

 

100.0

%

 

(1)

The quarter over quarter and YTD over YTD changes are due primarily to:

 

Real estate taxes – Higher rates and assessed values continue to drive real estate tax growth across most markets with a slight improvement from previous expectations caused by successful appeals activity and lower than expected rate growth in New York.

 

On-site payroll – Results better than expectations due to faster than anticipated progress in transition to enhanced operating platform, lower than expected employee benefit-related costs and less overtime, partially offset by one-time frontline worker bonuses.

 

Utilities – Growth lower than expected due to warmer winter weather and energy rate decreases.

 

Repairs and maintenance – Decrease primarily driven by deferral and cancellation of some projects as a result of COVID-19-related delays.

 

Insurance – Increase due to higher premiums on property insurance renewal caused by challenging conditions in the insurance market.

 

Leasing and advertising – Decrease greater than expectations due in part to suspension of resident activities.

 
(2)

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

Equity Residential

Debt Summary as of June 30, 2020

($ in thousands)

 

 

 

Debt
Balances (1)

 

 

% of Total

 

 

Weighted
Average
Rates (1)

 

 

Weighted

Average
Maturities
(years)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured

 

$

2,340,757

 

 

 

27.8

%

 

 

3.51

%

 

 

7.0

 

Unsecured

 

 

6,081,102

 

 

 

72.2

%

 

 

3.85

%

 

 

10.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

8,421,859

 

 

 

100.0

%

 

 

3.77

%

 

 

9.4

 

Fixed Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured – Conventional

 

$

1,972,862

 

 

 

23.4

%

 

 

3.94

%

 

 

5.4

 

Unsecured – Public

 

 

6,081,102

 

 

 

72.2

%

 

 

4.06

%

 

 

10.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Rate Debt

 

 

8,053,964

 

 

 

95.6

%

 

 

4.03

%

 

 

9.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Floating Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured – Conventional

 

 

7,315

 

 

 

0.1

%

 

 

3.35

%

 

 

2.0

 

Secured – Tax Exempt

 

 

360,580

 

 

 

4.3

%

 

 

1.49

%

 

 

15.5

 

Unsecured – Revolving Credit Facility

 

 

 

 

 

 

 

 

1.47

%

 

 

4.3

 

Unsecured – Commercial Paper Program (2)

 

 

 

 

 

 

 

 

1.81

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Floating Rate Debt

 

 

367,895

 

 

 

4.4

%

 

 

1.68

%

 

 

15.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

8,421,859

 

 

 

100.0

%

 

 

3.77

%

 

 

9.4

 

(1)

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

 

(2)

The weighted average amount outstanding for the six months ended June 30, 2020 was approximately $522.7 million.

Note: The Company capitalized interest of approximately $4.1 million and $2.7 million during the six months ended June 30, 2020 and 2019, respectively. The Company capitalized interest of approximately $2.3 million and $1.5 million during the quarters ended June 30, 2020 and 2019, respectively.

Equity Residential

Debt Maturity Schedule as of June 30, 2020

($ 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

$

23,669

 

 

$

 

 

$

23,669

 

 

 

0.3

%

 

 

4.75

%

 

 

4.75

%

2021

 

 

834,904

 

 

 

 

 

 

834,904

 

 

 

9.8

%

 

 

4.63

%

 

 

4.63

%

2022

 

 

264,185

 

 

 

7,796

 

 

 

271,981

 

 

 

3.2

%

 

 

3.25

%

 

 

3.22

%

2023

 

 

1,325,588

 

 

 

3,500

 

 

 

1,329,088

 

 

 

15.6

%

 

 

3.74

%

 

 

3.73

%

2024

 

 

 

 

 

6,100

 

 

 

6,100

 

 

 

0.1

%

 

N/A

 

 

 

0.15

%

2025

 

 

450,000

 

 

 

8,200

 

 

 

458,200

 

 

 

5.4

%

 

 

3.38

%

 

 

3.32

%

2026

 

 

592,025

 

 

 

9,000

 

 

 

601,025

 

 

 

7.0

%

 

 

3.58

%

 

 

3.53

%

2027

 

 

400,000

 

 

 

9,800

 

 

 

409,800

 

 

 

4.8

%

 

 

3.25

%

 

 

3.18

%

2028

 

 

900,000

 

 

 

42,380

 

 

 

942,380

 

 

 

11.1

%

 

 

3.79

%

 

 

3.62

%

2029

 

 

888,120

 

 

 

11,500

 

 

 

899,620

 

 

 

10.6

%

 

 

3.30

%

 

 

3.26

%

2030+

 

 

2,445,850

 

 

 

288,135

 

 

 

2,733,985

 

 

 

32.1

%

 

 

3.56

%

 

 

3.21

%

Subtotal

 

 

8,124,341

 

 

 

386,411

 

 

 

8,510,752

 

 

 

100.0

%

 

 

3.67

%

 

 

3.51

%

Deferred Financing Costs and Unamortized (Discount)

 

 

(70,377

)

 

 

(18,516

)

 

 

(88,893

)

 

N/A

 

 

N/A

 

 

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

8,053,964

 

 

$

367,895

 

 

$

8,421,859

 

 

 

100.0

%

 

 

3.67

%

 

 

3.51

%

(1)

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

Equity Residential

 

Selected Unsecured Public Debt Covenants

 

 

 

June 30,

 

March 31,

 

 

2020

 

2020

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

 

31.8%

 

32.5%

 

 

 

 

 

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

 

9.7%

 

8.2%

 

 

 

 

 

Consolidated Income Available for Debt Service to

 

 

 

Maximum Annual Service Charges

 

 

 

(must be at least 1.5 to 1)

 

4.96

 

5.09

 

 

 

 

 

Total Unencumbered Assets to Unsecured Debt

 

 

 

(must be at least 125%)

 

439.5%

 

408.3%

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

 

Selected Credit Ratios

 

 

 

June 30,

 

March 31,

 

 

2020

 

2020

Total debt to Normalized EBITDAre

 

4.82x

 

4.91x

 

 

 

 

 

Net debt to Normalized EBITDAre

 

4.71x

 

4.86x

 

 

 

 

 

Unencumbered NOI as a % of total NOI

 

85.8%

 

87.2%

Note: See Normalized EBITDAre Reconciliations for detail.

Equity Residential

Capital Structure as of June 30, 2020

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

 

Secured Debt

 

 

 

 

 

 

 

 

 

$

2,340,757

 

 

 

27.8

%

 

 

 

 

Unsecured Debt

 

 

 

 

 

 

 

 

 

 

6,081,102

 

 

 

72.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt

 

 

 

 

 

 

 

 

 

 

8,421,859

 

 

 

100.0

%

 

 

27.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares (includes Restricted Shares)

 

 

372,209,012

 

 

 

96.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Units (includes OP Units and Restricted Units)

 

 

13,879,951

 

 

 

3.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Shares and Units

 

 

386,088,963

 

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Common Share Price at June 30, 2020

 

$

58.82

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22,709,753

 

 

 

99.8

%

 

 

 

 

Perpetual Preferred Equity (see below)

 

 

 

 

 

 

 

 

 

 

37,280

 

 

 

0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Equity

 

 

 

 

 

 

 

 

 

 

22,747,033

 

 

 

100.0

%

 

 

73.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Market Capitalization

 

 

 

 

 

 

 

 

 

$

31,168,892

 

 

 

 

 

 

 

100.0

%

Perpetual Preferred Equity as of June 30, 2020

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

 

Series

 

Call Date

 

Outstanding
Shares

 

 

Liquidation
Value

 

 

Annual
Dividend
Per Share

 

 

Annual
Dividend
Amount

 

Preferred Shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8.29% Series K

 

12/10/26

 

 

745,600

 

 

$

37,280

 

 

$

4.145

 

 

$

3,091

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Residential

Common Share and Unit

Weighted Average Amounts Outstanding

 

 

 

June YTD 2020

 

 

June YTD 2019

 

 

Q2 2020

 

 

Q2 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Amounts Outstanding for Net Income Purposes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares - basic

 

 

371,688,567

 

 

 

369,952,087

 

 

 

371,795,049

 

 

 

370,342,189

 

Shares issuable from assumed conversion/vesting of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- OP Units

 

 

13,013,343

 

 

 

12,902,350

 

 

 

13,022,786

 

 

 

12,885,175

 

- long-term compensation shares/units

 

 

1,570,149

 

 

 

2,789,234

 

 

 

1,095,436

 

 

 

2,879,255

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Common Shares and Units - diluted

 

 

386,272,059

 

 

 

385,643,671

 

 

 

385,913,271

 

 

 

386,106,619