Equity Residential Reports Full Year 2020 Results

Provides Full Year 2021 Guidance

CHICAGO--(BUSINESS WIRE)--Equity Residential (NYSE: EQR) today reported results for the quarter and year ended December 31, 2020 and has posted a Q4 2020 Management Presentation to its website as referenced below.

Fourth Quarter 2020 Results

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

	Quarter Ended December 31,
	2020		2019		$ Change			% Change
Earnings Per Share (EPS)	$	0.68	$	0.77	$	(0.09	)		(11.7	%)
Funds from Operations (FFO) per share	$	0.73	$	0.86	$	(0.13	)		(15.1	%)
Normalized FFO per share	$	0.76	$	0.91	$	(0.15	)		(16.5	%)

	Year Ended December 31,
	2020		2019		$ Change			% Change
Earnings Per Share (EPS)	$	2.45	$	2.60	$	(0.15	)		(5.8	%)
Funds from Operations (FFO) per share	$	3.21	$	3.39	$	(0.18	)		(5.3	%)
Normalized FFO per share	$	3.26	$	3.49	$	(0.23	)		(6.6	%)

“We are optimistic that 2021 will be a year of recovery for Equity Residential. Operating trends are improving and we expect that our financial results will bottom out in the first half of 2021,” said Mark J. Parrell, Equity Residential’s President and CEO. “Our affluent, well-employed resident base remains drawn to our nation’s great cities and we expect demand to accelerate and pricing to continue to improve as vaccines are widely administered and cities become more active. Many thanks to our colleagues across the country for their hard work in 2020 under very tough conditions.”

Highlights

• The Company has seen a 0.9% improvement in same store Physical Occupancy since the end of the third quarter 2020 (94.2% on September 30, 2020 to 95.1% on January 31, 2021).
• Pricing Trends stabilized in November 2020 and modestly improved in December 2020 and January 2021 for the first time since the beginning of the pandemic. See the Management Presentation referenced below for details.
• The Company collected approximately 97% of its expected Residential revenues in the fourth quarter of 2020.
• The Company used the proceeds from the sale described below as well as cash on hand and borrowings under its commercial paper program to satisfy its obligations on its $750.0 million 4.625% unsecured notes due in December 2021, by discharging them pursuant to their indenture. During 2020, the Company paid down nearly $1.0 billion in the aggregate in debt, further strengthening its balance sheet.
• The Company sold Vantage Pointe, a 679-unit apartment property located in downtown San Diego, for a sale price of approximately $312.5 million at a Disposition Yield of 4.1%, generating an Unlevered IRR of 8.8% over the Company’s ten-year ownership period.

Results Per Share

The changes in EPS for the quarter and year ended December 31, 2020 compared to the same periods of 2019 are due primarily to lower depreciation expense in the current periods as a result of the Company's disposition activity, the various adjustment items listed on page 26 of this release and the items described below.

The per share changes in FFO for both the quarter and year ended December 31, 2020 compared to the same periods of 2019, are due primarily to the various adjustment items listed on page 26 of this release and the items described below.

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

	Positive/(Negative) Impact
	Fourth Quarter 2020 vs. Fourth Quarter 2019			Full Year 2020 vs. Full Year 2019
Residential same store Net Operating Income (NOI)	$	(0.15	)	$	(0.22	)
Non-Residential same store NOI ^(1)		(0.01	)		(0.08	)
Lease-Up NOI	–				0.01
2020 and 2019 transaction activity impact on NOI, net		(0.03	)		(0.06	)
Interest expense, net		0.03			0.11
Other items		0.01			0.01
Net	$	(0.15	)	$	(0.23	)

(1)	Non-Residential same store NOI was negatively impacted by a $(0.03) per share non-cash write-off of Non-Residential straight-line lease receivables during the year ended December 31, 2020, primarily in the third quarter of 2020.

The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 28 through 33 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 7, 30 and 31 of this release.

Same Store Results

The Company has provided a breakout of Residential and Non-Residential same store results on page 11 of this release with definitions that can be found on page 32 of this release. Non-Residential operations account for approximately 2.7% of total revenues for the year ended December 31, 2020. The table below reflects same store Residential only results for the fourth quarter 2020 to fourth quarter 2019 comparison, which includes 76,535 apartment units, as well as for the year ended December 31, 2020 to year ended December 31, 2019 comparison, which includes 73,585 apartment units. The Company’s Physical Occupancy was 94.2% compared to 96.1% for the fourth quarter of 2020 and 2019, respectively, and 95.1% compared to 96.4% for the full year of 2020 and 2019, respectively.

	Fourth Quarter 2020 vs. Fourth Quarter 2019	Full Year 2020 vs. Full Year 2019
Revenues	(8.2%)	(2.9%)
Expenses	2.8%	2.1%
NOI	(12.9%)	(5.0%)

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. See pages 12 and 32 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.

	Fourth Quarter 2020 vs. Fourth Quarter 2019			Full Year 2020 vs. Full Year 2019
	% Change			% Change
Same Store Residential Revenues-
comparable period
Lease rates		(4.4	%)		(0.4	%)
Leasing Concessions ^(1)		(1.2	%)		(0.4	%)
Vacancy loss		(1.6	%)		(1.3	%)
Bad Debt, Net ^(2)		(1.6	%)		(1.2	%)
Other ^(3)		0.6	%		0.4	%
Same Store Residential Revenues-
current period		(8.2	%)		(2.9	%)

(1)	Reflects upfront discounts on both new move-in and renewal leases on a straight-line basis.
(2)	Reduction in rental income due to bad debt write-offs and reserves, net of amounts collected on previously written-off or reserved accounts.
(3)	Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items.

Residential Same Store Operating Statistics

The following table includes select statistics for Residential Same Store Properties presented on a suburban and urban basis. Statistics for January 2021 are preliminary and Blended Rate is inclusive of Leasing Concessions.

	% of Same Store Residential Revenues	Physical Occupancy on:			Percentage of Residents Renewing by Month			Blended Rate
	Dec YTD 2020	Sep 30, 2020	Dec 31, 2020	Jan 31, 2021	Jan 2020	Dec 2020	Jan 2021 (1)	Q4 2020	Dec 2020	Jan 2021 (1)
Suburban (2)	44%	95.9%	95.8%	96.1%	58%	58%	55%	(7.0%)	(7.3%)	(7.3%)
Urban Other (2)(3)	33%	94.3%	94.6%	95.3%	55%	47%	45%	(13.4%)	(14.3%)	(14.7%)
Urban Core (2)(4)	23%	89.2%	90.2%	91.8%	63%	49%	51%	(25.0%)	(26.6%)	(25.0%)
Total	100%	94.2%	94.4%	95.1%	58%	53%	52%	(13.0%)	(13.9%)	(14.1%)

(1)	January 2021 results are preliminary.
(2)	The Company defines Urban submarkets as those with 3,500 or more households per square mile with the remainder defined as Suburban.
(3)	Includes all other Urban properties excluding Urban Core.
(4)	Includes Urban properties in Manhattan/Brooklyn, Downtown Boston/Cambridge and Downtown San Francisco.

Investment Activity

The Company sold a 679-unit apartment property in downtown San Diego during the fourth quarter of 2020 for a sale price of approximately $312.5 million at a Disposition Yield of 4.1% generating an Unlevered IRR of 8.8%. The Company also sold two land parcels for an aggregate sale price of approximately $55.5 million. The Company did not acquire any assets during the fourth quarter of 2020.

During the full year of 2020, the Company acquired a 158-unit apartment property in suburban Seattle for a purchase price of approximately $48.9 million at an Acquisition Capitalization Rate of 4.7%. Also, during the full year of 2020, the Company sold six properties, consisting of 2,231 apartment units, for an aggregate sales price of approximately $1.07 billion at a weighted average Disposition Yield of 4.5%, generating an Unlevered IRR of 10.2%.

Capital Markets Activity

In December 2020, the Company used the proceeds from the property sale described above as well as cash on hand and borrowings under its commercial paper program to satisfy its obligations on its $750.0 million 4.625% unsecured notes due in December 2021, by discharging them pursuant to their indenture. As a result, the Company incurred approximately $39.1 million in debt extinguishment charges, of which $25.8 million represented a cash charge and the remaining $13.3 million corresponded to write-offs of unamortized debt costs. These charges impacted the Company’s 2020 Earnings Per Share and Funds from Operations per share but did not impact the Company’s Normalized Funds from Operations per share.

First Quarter 2021 Guidance

The Company has established guidance ranges for the first quarter of 2021 EPS, FFO per share and Normalized FFO per share as listed below:

	Q1 2021 Guidance
EPS	$0.31 to $0.35
FFO per share	$0.65 to $0.69
Normalized FFO per share	$0.65 to $0.69

The difference between the fourth quarter 2020 actual EPS of $0.68 and the first quarter of 2021 EPS guidance midpoint of $0.33 is due primarily to lower expected property sale gains, lower expected debt extinguishment costs, lower expected land sale gains and the items described below.

The difference between the fourth quarter 2020 actual FFO of $0.73 per share and the first quarter of 2021 FFO guidance midpoint of $0.67 per share is due primarily to lower expected debt extinguishment costs, lower expected land sale gains and the items described below.

The difference between the fourth quarter 2020 actual Normalized FFO of $0.76 per share and the first quarter of 2021 Normalized FFO guidance midpoint of $0.67 per share is due primarily to:

	Positive/(Negative) Impact
	First Quarter 2021 vs. Fourth Quarter 2020
Same Store NOI	$	(0.07	)
2020 transaction activity impact on NOI, net		(0.01	)
Interest expense, net		0.03
Corporate overhead ^(1)		(0.03	)
Other items		(0.01	)
Net	$	(0.09	)

(1)	Corporate overhead includes property management and general and administrative expenses.

Full Year 2021 Guidance

The Company has provided guidance for its full year 2021 same store operating performance, EPS, FFO per share and Normalized FFO per share as listed below:

Same Store (includes Residential and Non-Residential):
Physical Occupancy	94.8% to 95.8%
Revenue change	(9.0%) to (7.0%)
Expense change	3.0% to 4.0%
NOI change	(15.0%) to (12.0%)
EPS	$2.55 to $2.75
FFO per share	$2.58 to $2.78
Normalized FFO per share	$2.60 to $2.80

The difference between the Company’s full year 2020 actual EPS of $2.45 and the full year 2021 EPS guidance midpoint of $2.65 is due primarily to higher expected property sale gains, lower expected depreciation expense, lower expected debt extinguishment costs, lower expected land sale gains and the items described below.

The difference between the Company’s full year 2020 actual FFO of $3.21 per share and the full year 2021 FFO guidance midpoint of $2.68 per share is due primarily to lower expected debt extinguishment costs, lower expected land sale gains and the items described below.

The difference between the Company’s full year 2020 actual Normalized FFO of $3.26 per share and the full year 2021 Normalized FFO guidance midpoint of $2.70 per share is due primarily to:

	Positive/(Negative) Impact
	Full Year 2021 vs. Full Year 2020
Same Store NOI	$	(0.60	)
2021 and 2020 transaction activity impact on NOI, net		(0.07	)
Interest expense, net		0.14
Other items, including corporate overhead		(0.03	)
Net	$	(0.56	)

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 high quality long-term renters. Equity Residential owns or has investments in 304 properties consisting of 77,889 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, the rollout and effectiveness of vaccines and the impact of operational changes we have implemented and may implement in response to the pandemic. Other risks and uncertainties are described under the heading “Risk Factors” in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityapartments.com. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

A live web cast of the Company’s conference call discussing these results will take place tomorrow, Thursday, February 11, 2021 at 10:00 a.m. CT. In connection with the conference call, the Company is also providing a Management Presentation on its website. Please visit the Investor section of the Company’s website at www.equityapartments.com for the web cast link and the presentation.

Equity Residential Consolidated Statements of Operations (Amounts in thousands except per share data) (Unaudited)
	Year Ended December 31,						Quarter Ended December 31,
	2020			2019			2020			2019
REVENUES
Rental income	$	2,571,705		$	2,700,691		$	613,435		$	683,895
EXPENSES
Property and maintenance		440,998			446,845			107,665			108,348
Real estate taxes and insurance		381,562			366,139			93,519			95,705
Property management		93,825			95,344			22,312			22,639
General and administrative		48,305			52,757			11,093			11,630
Depreciation		820,832			831,083			201,829			214,882
Total expenses		1,785,522			1,792,168			436,418			453,204
Net gain (loss) on sales of real estate properties		531,807			447,637			179,589			178,237
Operating income		1,317,990			1,356,160			356,606			408,928
Interest and other income		5,935			3,201			1,929			620
Other expenses		(17,510	)		(18,177	)		(9,186	)		(6,972	)
Interest:
Expense incurred, net		(365,073	)		(390,076	)		(116,724	)		(100,300	)
Amortization of deferred financing costs		(8,939	)		(11,670	)		(2,686	)		(3,006	)
Income before income and other taxes, income (loss) from
investments in unconsolidated entities and net gain (loss)
on sales of land parcels		932,403			939,438			229,939			299,270
Income and other tax (expense) benefit		(852	)		2,281			(350	)		3,030
Income (loss) from investments in unconsolidated entities		(3,284	)		65,945			(839	)		(961	)
Net gain (loss) on sales of land parcels		34,234			2,044			34,234			(33	)
Net income		962,501			1,009,708			262,984			301,306
Net (income) loss attributable to Noncontrolling Interests:
Operating Partnership		(34,010	)		(36,034	)		(9,386	)		(10,695	)
Partially Owned Properties		(14,855	)		(3,297	)		(742	)		(847	)
Net income attributable to controlling interests		913,636			970,377			252,856			289,764
Preferred distributions		(3,090	)		(3,090	)		(772	)		(772	)
Net income available to Common Shares	$	910,546		$	967,287		$	252,084		$	288,992
Earnings per share – basic:
Net income available to Common Shares	$	2.45		$	2.61		$	0.68		$	0.78
Weighted average Common Shares outstanding		371,791			370,461			371,915			371,155
Earnings per share – diluted:
Net income available to Common Shares	$	2.45		$	2.60		$	0.68		$	0.77
Weighted average Common Shares outstanding		385,874			386,333			385,756			387,143
Distributions declared per Common Share outstanding	$	2.41		$	2.27		$	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)
	Year Ended December 31,						Quarter Ended December 31,
	2020			2019			2020			2019
Net income	$	962,501		$	1,009,708		$	262,984		$	301,306
Net (income) loss attributable to Noncontrolling Interests – Partially
Owned Properties		(14,855	)		(3,297	)		(742	)		(847	)
Preferred distributions		(3,090	)		(3,090	)		(772	)		(772	)
Net income available to Common Shares and Units		944,556			1,003,321			261,470			299,687
Adjustments:
Depreciation		820,832			831,083			201,829			214,882
Depreciation – Non-real estate additions		(4,564	)		(5,585	)		(1,131	)		(1,350	)
Depreciation – Partially Owned Properties		(3,345	)		(3,599	)		(831	)		(899	)
Depreciation – Unconsolidated Properties		2,454			2,997			616			612
Net (gain) loss on sales of unconsolidated entities - operating
assets		(1,636	)		(69,522	)		(636	)		—
Net (gain) loss on sales of real estate properties		(531,807	)		(447,637	)		(179,589	)		(178,237	)
Noncontrolling Interests share of gain (loss) on sales
of real estate properties		11,655			—			—			—
FFO available to Common Shares and Units		1,238,145			1,311,058			281,728			334,695
Adjustments (see note for additional detail):
Impairment – non-operating assets		—			—			—			—
Write-off of pursuit costs		6,869			5,529			2,005			1,431
Debt extinguishment and preferred share redemption (gains)
losses		39,292			23,991			39,255			12,184
Non-operating asset (gains) losses		(32,590	)		(940	)		(33,612	)		260
Other miscellaneous items		4,652			8,430			5,166			1,891
Normalized FFO available to Common Shares and Units	$	1,256,368		$	1,348,068		$	294,542		$	350,461
FFO	$	1,241,235		$	1,314,148		$	282,500		$	335,467
Preferred distributions		(3,090	)		(3,090	)		(772	)		(772	)
FFO available to Common Shares and Units	$	1,238,145		$	1,311,058		$	281,728		$	334,695
FFO per share and Unit – basic	$	3.22		$	3.42		$	0.73		$	0.87
FFO per share and Unit – diluted	$	3.21		$	3.39		$	0.73		$	0.86
Normalized FFO	$	1,259,458		$	1,351,158		$	295,314		$	351,233
Preferred distributions		(3,090	)		(3,090	)		(772	)		(772	)
Normalized FFO available to Common Shares and Units	$	1,256,368		$	1,348,068		$	294,542		$	350,461
Normalized FFO per share and Unit – basic	$	3.27		$	3.52		$	0.77		$	0.91
Normalized FFO per share and Unit – diluted	$	3.26		$	3.49		$	0.76		$	0.91
Weighted average Common Shares and Units outstanding – basic		384,794			383,368			384,899			384,039
Weighted average Common Shares and Units outstanding – diluted		385,874			386,333			385,756			387,143

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

Equity Residential Consolidated Balance Sheets (Amounts in thousands except for share amounts) (Unaudited)
	December 31,			December 31,
	2020			2019
ASSETS
Land	$	5,785,367		$	5,936,188
Depreciable property		20,920,654			21,319,101
Projects under development		411,134			181,630
Land held for development		86,170			96,688
Investment in real estate		27,203,325			27,533,607
Accumulated depreciation		(7,859,657	)		(7,276,786	)
Investment in real estate, net		19,343,668			20,256,821
Investments in unconsolidated entities		52,782			52,238
Cash and cash equivalents		42,591			45,753
Restricted deposits		57,137			71,246
Right-of-use assets		499,287			512,774
Other assets		291,426			233,937
Total assets	$	20,286,891		$	21,172,769
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net	$	2,293,890		$	1,941,610
Notes, net		5,335,536			6,077,513
Line of credit and commercial paper		414,830			1,017,833
Accounts payable and accrued expenses		107,366			94,350
Accrued interest payable		65,896			66,852
Lease liabilities		329,130			331,334
Other liabilities		345,064			346,963
Security deposits		60,480			70,062
Distributions payable		232,262			218,326
Total liabilities		9,184,454			10,164,843
Commitments and contingencies
Redeemable Noncontrolling Interests – Operating Partnership		338,951			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 December 31, 2020 and December 31, 2019		37,280			37,280
Common Shares of beneficial interest, $0.01 par value;
1,000,000,000 shares authorized; 372,302,000 shares issued
and outstanding as of December 31, 2020 and 371,670,884
shares issued and outstanding as of December 31, 2019		3,723			3,717
Paid in capital		9,128,599			8,965,577
Retained earnings		1,399,715			1,386,495
Accumulated other comprehensive income (loss)		(43,666	)		(77,563	)
Total shareholders’ equity		10,525,651			10,315,506
Noncontrolling Interests:
Operating Partnership		233,162			227,837
Partially Owned Properties		4,673			1,183
Total Noncontrolling Interests		237,835			229,020
Total equity		10,763,486			10,544,526
Total liabilities and equity	$	20,286,891		$	21,172,769

Equity Residential Portfolio Summary As of December 31, 2020
					% of Stabilized			Average
			Apartment		Budgeted			Rental
Markets/Metro Areas	Properties		Units		NOI			Rate
Los Angeles		72		16,603		21.5	%	$	2,458
Orange County		13		4,028		5.4	%		2,222
San Diego		11		2,706		3.8	%		2,373
Subtotal – Southern California		96		23,337		30.7	%		2,407
San Francisco		48		12,707		18.3	%		3,053
Washington DC		47		14,731		17.2	%		2,387
Seattle		46		9,454		11.4	%		2,349
New York		37		9,606		11.3	%		3,617
Boston		25		6,430		9.4	%		2,958
Denver		5		1,624		1.7	%		2,003
Total		304		77,889		100.0	%	$	2,680

	Properties		Apartment Units
Wholly Owned Properties		287		74,328
Master-Leased Properties – Consolidated		1		162
Partially Owned Properties – Consolidated		16		3,399
		304		77,889

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

Equity Residential
Portfolio Rollforward Q4 2020 ($ in thousands)
		Properties			Apartment Units			Sales Price			Disposition Yield
	9/30/2020		305			78,568
Dispositions:
Consolidated:
Rental Properties			(1	)		(679	)	$	(312,500	)		(4.1	%)
Land Parcels			—			—		$	(55,510	)
	12/31/2020		304			77,889

Portfolio Rollforward 2020 ($ in thousands)
		Properties			Apartment Units			Purchase Price			Acquisition Cap Rate
	12/31/2019		309			79,962
Acquisitions:
Consolidated Rental Properties – Not Stabilized (A)			1			158		$	48,860			4.7	%
								Sales Price			Disposition Yield
Dispositions:
Consolidated:
Rental Properties			(6	)		(2,231	)	$	(1,066,861	)		(4.5	%)
Land Parcels			—			—		$	(55,510	)
	12/31/2020		304			77,889

(A)	The Company acquired one property in the Seattle market in the third quarter of 2020 that is in lease-up and is expected to stabilize in its second year of ownership at an Acquisition Cap Rate of 4.7%.

Equity Residential
Fourth Quarter 2020 vs. Fourth Quarter 2019 Same Store Results/Statistics Including 76,535 Same Store Apartment Units $ in thousands (except for Average Rental Rate)
Fourth Quarter 2020												Fourth Quarter 2019
	Residential			% Change	Non- Residential			% Change	Total		% Change		Residential			Non- Residential		Total
Revenues	$	580,328	(1)	(8.2%)	$	19,926	(2)	(15.8%)	$	600,254	(8.5%)	Revenues	$	632,229		$	23,658	$	655,887
Expenses	$	192,948		2.8%	$	5,541		(0.6%)	$	198,489	2.7%	Expenses	$	187,637		$	5,573	$	193,210
NOI	$	387,380		(12.9%)	$	14,385		(20.5%)	$	401,765	(13.2%)	NOI	$	444,592		$	18,085	$	462,677
Average Rental Rate	$	2,685		(6.4%)								Average Rental Rate	$	2,868
Physical Occupancy		94.2	%	(1.9%)								Physical Occupancy		96.1	%
Turnover		13.4	%	2.7%								Turnover		10.7	%

Fourth Quarter 2020 vs. Third Quarter 2020 Same Store Results/Statistics Including 77,351 Same Store Apartment Units $ in thousands (except for Average Rental Rate)
Fourth Quarter 2020												Third Quarter 2020
	Residential			% Change	Non- Residential			% Change	Total		% Change		Residential			Non- Residential		Total
Revenues	$	585,992	(1)	(3.7%)	$	19,982	(2)	223.8%	$	605,974	(1.5%)	Revenues	$	608,737		$	6,171	$	614,908
Expenses	$	194,467		(3.4%)	$	5,558		(3.0%)	$	200,025	(3.3%)	Expenses	$	201,218		$	5,732	$	206,950
NOI	$	391,525		(3.9%)	$	14,424		3185.6%	$	405,949	(0.5%)	NOI	$	407,519		$	439	$	407,958
Average Rental Rate	$	2,683		(3.2%)								Average Rental Rate	$	2,771
Physical Occupancy		94.2	%	(0.5%)								Physical Occupancy		94.7	%
Turnover		13.4	%	(4.4%)								Turnover		17.8	%

2020 vs. 2019 Same Store Results/Statistics Including 73,585 Same Store Apartment Units $ in thousands (except for Average Rental Rate)
2020												2019
	Residential			% Change	Non- Residential			% Change	Total		% Change		Residential			Non- Residential		Total
Revenues	$	2,356,344	(1)	(2.9%)	$	62,674	(2)	(33.2%)	$	2,419,018	(4.0%)	Revenues	$	2,425,471		$	93,764	$	2,519,235
Expenses	$	751,504		2.1%	$	21,975		3.5%	$	773,479	2.1%	Expenses	$	736,279		$	21,223	$	757,502
NOI	$	1,604,840		(5.0%)	$	40,699		(43.9%)	$	1,645,539	(6.6%)	NOI	$	1,689,192		$	72,541	$	1,761,733
Average Rental Rate	$	2,809		(1.5%)								Average Rental Rate	$	2,852
Physical Occupancy		95.1	%	(1.3%)								Physical Occupancy		96.4	%
Turnover		52.3	%	2.5%								Turnover		49.8	%

(1)	See page 12 for Same Store Residential Revenues with Leasing Concessions reflected on a cash basis. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.
(2)	Changes in same store Non-Residential revenues for the periods presented are driven by the following:
	• Fourth Quarter 2020 vs. Fourth Quarter 2019 – Primarily deferral/abatement of rents, higher bad debt and lower parking income.
	• Fourth Quarter 2020 vs. Third Quarter 2020 – Primarily a $10.6 million non-cash write-off of Non-Residential straight-line lease receivables in the third quarter of 2020.
	• 2020 vs. 2019 – Primarily deferral/abatement of rents, higher bad debt, lower parking income and the non-cash write-off of $12.9 million of Non-Residential straight-line lease receivables predominately in the third quarter of 2020.

Equity Residential
Same Store Residential Revenues – GAAP to Cash Basis (1) $ in thousands
	Fourth Quarter 2020 vs. Fourth Quarter 2019						Fourth Quarter 2020 vs. Third Quarter 2020						2020 vs. 2019
	76,535 Same Store Apartment Units						77,351 Same Store Apartment Units						73,585 Same Store Apartment Units
	Q4 2020			Q4 2019			Q4 2020			Q3 2020			2020			2019
Same Store Residential Revenues (GAAP Basis)	$	580,328		$	632,229		$	585,992		$	608,737		$	2,356,344		$	2,425,471
Leasing Concessions amortized		8,091			819			8,335			4,322			13,435			3,189
Leasing Concessions granted		(16,444	)		(1,014	)		(16,793	)		(12,070	)		(31,077	)		(2,034	)
Same Store Residential Revenues with Leasing
Concessions on a cash basis	$	571,975		$	632,034		$	577,534		$	600,989		$	2,338,702		$	2,426,626
% change - GAAP revenue		(8.2	%)					(3.7	%)					(2.9	%)
% change - cash revenue		(9.5	%)					(3.9	%)					(3.6	%)
(1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.

Same Store Resident/Tenant Accounts Receivable Balances Including 73,585 Same Store Apartment Units $ in thousands
	Residential										Non-Residential
Balance Sheet (Other assets):	December 31, 2020				September 30, 2020			December 31, 2019			December 31, 2020			September 30, 2020			December 31, 2019
Resident/tenant accounts receivable balances	$	29,618			$	23,506		$	4,054		$	7,113		$	7,533		$	1,700
Allowance for doubtful accounts		(22,705	)			(14,995	)		(1,082	)		(6,323	)		(6,342	)		(1,349	)
Net receivable balances	$	6,913		(1)	$	8,511		$	2,972		$	790		$	1,191		$	351
Straight-line receivable balances	$	18,672		(2)	$	10,401		$	1,029		$	13,304		$	13,681		$	26,153

(1)	The Company held same store Residential security deposits approximating 29.2% of the net receivable balance at December 31, 2020.
(2)	Total same store Residential Leasing Concessions granted in 2020 were approximately $31.1 million. The straight-line receivable balance of $18.7 million reflects Residential Leasing Concessions that the Company expects will be recognized as a reduction of rental revenues in 2021.

Same Store Residential Bad Debt Including 73,585 Same Store Apartment Units $ in thousands
Income Statement (Rental income):	Q4 2020			2020			2019
Bad Debt, Net	$	12,550		$	39,391		$	10,660
% of Same Store Residential Revenues		2.2	%		1.7	%		0.4	%

Equity Residential Fourth Quarter 2020 vs. Fourth Quarter 2019 Same Store Residential Results/Statistics by Market
														Increase (Decrease) from Prior Year's Quarter
Markets/Metro Areas	Apartment Units		Q4 2020 % of Actual NOI			Q4 2020 Average Rental Rate		Q4 2020 Weighted Average Physical Occupancy %			Q4 2020 Turnover			Revenues				Expenses			NOI			Average Rental Rate			Physical Occupancy			Turnover
Los Angeles		16,603		20.4	%	$	2,458		95.6	%		13.8	%		(7.1	%)			2.0	%		(10.9	%)		(6.8	%)		(0.3	%)		1.7	%
Orange County		4,028		5.2	%		2,222		96.8	%		10.7	%		(2.2	%)			(0.4	%)		(2.7	%)		(2.3	%)		0.2	%		0.3	%
San Diego		2,706		3.7	%		2,373		97.3	%		11.4	%		0.5	%			3.6	%		(0.5	%)		(0.3	%)		0.8	%		(1.2	%)
Subtotal – Southern California		23,337		29.3	%		2,407		96.0	%		13.0	%		(5.5	%)			1.8	%		(8.3	%)		(5.4	%)		(0.1	%)		1.2	%
San Francisco		12,707		19.9	%		3,053		92.7	%		15.7	%		(11.4	%)			3.4	%		(16.2	%)		(8.9	%)		(2.6	%)		3.5	%
Washington DC		14,299		17.4	%		2,386		95.4	%		12.6	%		(3.5	%)			0.5	%		(5.2	%)		(2.5	%)		(1.0	%)		3.0	%
New York		9,606		11.6	%		3,617		89.8	%		11.8	%		(14.6	%)			5.7	%		(29.2	%)		(8.2	%)		(6.6	%)		4.5	%
Seattle		8,616		10.6	%		2,360		94.5	%		13.8	%		(5.9	%)			1.2	%		(8.5	%)		(4.0	%)		(1.9	%)		2.7	%
Boston		6,346		9.4	%		2,961		93.9	%		13.0	%		(9.1	%)			3.1	%		(13.7	%)		(7.0	%)		(2.2	%)		3.6	%
Denver		1,624		1.8	%		2,003		95.1	%		15.9	%		(1.8	%)			(0.1	%)		(2.4	%)		(2.7	%)		0.6	%		0.3	%
Total		76,535		100.0	%	$	2,685		94.2	%		13.4	%		(8.2	%)	(1)		2.8	%		(12.9	%)		(6.4	%)		(1.9	%)		2.7	%

(1)	With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 9.5% in the fourth quarter of 2020 compared to the fourth quarter of 2019. See page 12 for additional detail and reconciliations.
Note: The above table reflects Residential same store results only. Residential operations account for approximately 97.3% of total revenues for the year ended December 31, 2020.

Equity Residential Fourth Quarter 2020 vs. Third Quarter 2020 Same Store Residential Results/Statistics by Market
														Increase (Decrease) from Prior Quarter
Markets/Metro Areas	Apartment Units		Q4 2020 % of Actual NOI			Q4 2020 Average Rental Rate		Q4 2020 Weighted Average Physical Occupancy %			Q4 2020 Turnover			Revenues				Expenses			NOI			Average Rental Rate			Physical Occupancy			Turnover
Los Angeles		16,603		20.2	%	$	2,458		95.6	%		13.8	%		(1.5	%)			(1.3	%)		(1.6	%)		(1.2	%)		(0.3	%)		(1.6	%)
Orange County		4,028		5.2	%		2,222		96.8	%		10.7	%		(1.0	%)			(10.6	%)		2.2	%		(0.9	%)		0.0	%		(5.2	%)
San Diego		2,706		3.6	%		2,373		97.3	%		11.4	%		0.5	%			(0.1	%)		0.7	%		0.3	%		0.2	%		(4.6	%)
Subtotal – Southern California		23,337		29.0	%		2,407		96.0	%		13.0	%		(1.2	%)			(2.4	%)		(0.7	%)		(1.0	%)		(0.2	%)		(2.6	%)
San Francisco		12,707		19.7	%		3,053		92.7	%		15.7	%		(6.4	%)			(2.7	%)		(7.8	%)		(4.6	%)		(1.7	%)		(2.9	%)
Washington DC		14,569		17.6	%		2,387		95.4	%		12.8	%		(2.7	%)			(7.0	%)		(0.7	%)		(2.5	%)		(0.2	%)		(4.8	%)
New York		9,606		11.5	%		3,617		89.8	%		11.8	%		(6.5	%)			1.0	%		(13.4	%)		(4.9	%)		(1.5	%)		(8.5	%)
Seattle		9,078		11.1	%		2,363		94.5	%		14.1	%		(3.2	%)			(10.1	%)		(0.1	%)		(3.1	%)		(0.1	%)		(3.4	%)
Boston		6,430		9.4	%		2,958		93.9	%		12.9	%		(3.5	%)			(3.5	%)		(3.5	%)		(3.9	%)		0.4	%		(7.8	%)
Denver		1,624		1.7	%		2,003		95.1	%		15.9	%		(1.8	%)			(12.9	%)		3.1	%		(1.9	%)		0.0	%		(6.8	%)
Total		77,351		100.0	%	$	2,683		94.2	%		13.4	%		(3.7	%)	(1)		(3.4	%)		(3.9	%)		(3.2	%)		(0.5	%)		(4.4	%)

(1)	With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 3.9% in the fourth quarter of 2020 compared to the third quarter of 2020. See page 12 for additional detail and reconciliations.
Note: The above table reflects Residential same store results only. Residential operations account for approximately 97.3% of total revenues for the year ended December 31, 2020.

Equity Residential 2020 vs. 2019 Same Store Residential Results/Statistics by Market
														Increase (Decrease) from Prior Year
Markets/Metro Areas	Apartment Units		2020 % of Actual NOI			2020 Average Rental Rate		2020 Weighted Average Physical Occupancy %			2020 Turnover			Revenues				Expenses			NOI			Average Rental Rate			Physical Occupancy			Turnover
Los Angeles		15,968		20.1	%	$	2,547		95.5	%		51.9	%		(3.1	%)			0.8	%		(4.8	%)		(2.4	%)		(0.7	%)		(2.5	%)
Orange County		4,028		5.0	%		2,252		96.7	%		45.3	%		0.2	%			0.8	%		0.0	%		0.0	%		0.2	%		(6.5	%)
San Diego		2,706		3.5	%		2,374		97.0	%		49.0	%		1.4	%			1.6	%		1.3	%		1.0	%		0.4	%		(6.0	%)
Subtotal – Southern California		22,702		28.6	%		2,473		95.9	%		50.4	%		(2.1	%)			0.9	%		(3.2	%)		(1.7	%)		(0.4	%)		(3.6	%)
San Francisco		12,183		20.6	%		3,234		94.7	%		55.3	%		(3.9	%)			3.0	%		(6.1	%)		(2.5	%)		(1.3	%)		4.2	%
Washington DC		13,711		16.5	%		2,444		95.7	%		49.9	%		(0.6	%)			0.9	%		(1.2	%)		0.4	%		(0.9	%)		3.2	%
New York		9,475		13.3	%		3,826		93.0	%		50.9	%		(6.2	%)			3.3	%		(13.2	%)		(2.4	%)		(3.7	%)		12.1	%
Seattle		8,442		10.4	%		2,433		95.5	%		53.6	%		(0.3	%)			3.9	%		(1.8	%)		0.7	%		(0.9	%)		(0.7	%)
Boston		6,346		9.8	%		3,100		94.2	%		56.3	%		(3.3	%)			0.6	%		(4.8	%)		(1.2	%)		(2.0	%)		9.0	%
Denver		726		0.8	%		2,101		94.5	%		70.8	%		(2.4	%)			2.9	%		(4.3	%)		(1.0	%)		(1.6	%)		4.7	%
Total		73,585		100.0	%	$	2,809		95.1	%		52.3	%		(2.9	%)	(1)		2.1	%		(5.0	%)		(1.5	%)		(1.3	%)		2.5	%

(1)	With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 3.6% in the year ended December 31, 2020 compared to the year ended December 31, 2019. See page 12 for additional detail and reconciliations.
Note: The above table reflects Residential same store results only. Residential operations account for approximately 97.3% of total revenues for the year ended December 31, 2020.

Equity Residential Same Store Residential Net Effective Lease Pricing Statistics For 73,585 Same Store Apartment Units
	New Lease Change (1)						Renewal Rate Achieved (2)						Blended Rate (3)
Markets/Metro Areas	Q4 2020			Q4 2019			Q4 2020			Q4 2019			Q4 2020			Q4 2019
Los Angeles		(8.9	%)		(2.9	%)		(0.4	%)		4.7	%		(4.5	%)		1.0	%
Orange County		(2.8	%)		(0.9	%)		2.1	%		5.6	%		0.0	%		2.6	%
San Diego		(0.1	%)		(1.8	%)		2.5	%		5.4	%		1.4	%		1.7	%
Subtotal – Southern California		(7.2	%)		(2.4	%)		0.3	%		4.9	%		(3.2	%)		1.3	%
San Francisco		(27.0	%)		(4.7	%)		(7.3	%)		4.4	%		(19.2	%)		(0.2	%)
Washington DC		(18.6	%)		(2.5	%)		(1.9	%)		5.4	%		(11.5	%)		1.8	%
New York		(27.3	%)		(2.8	%)		(6.5	%)		3.9	%		(18.6	%)		1.3	%
Seattle		(25.7	%)		(1.2	%)		(6.0	%)		6.9	%		(18.0	%)		2.0	%
Boston		(26.9	%)		(5.1	%)		(4.9	%)		5.6	%		(18.2	%)		0.7	%
Denver		(15.0	%)		(3.5	%)		(0.2	%)		7.3	%		(10.3	%)		0.0	%
Total		(20.6	%)		(3.1	%)		(3.4	%)		4.9	%		(13.0	%)		1.0	%

(1)	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.
(2)	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.
(3)	Blended Rate – The weighted average of New Lease Change and Renewal Rate Achieved.

Equity Residential
Fourth Quarter 2020 vs. Fourth Quarter 2019 Total Same Store Operating Expenses Including 76,535 Same Store Apartment Units $ in thousands
	Q4 2020		Q4 2019		$ Change (1)			% Change			% of Q4 2020 Operating Expenses
Real estate taxes	$	86,812	$	84,293	$	2,519			3.0	%		43.7	%
On-site payroll		40,198		39,283		915			2.3	%		20.3	%
Utilities		26,870		26,547		323			1.2	%		13.5	%
Repairs and maintenance		24,910		23,714		1,196			5.0	%		12.5	%
Insurance		6,293		5,368		925			17.2	%		3.2	%
Leasing and advertising		3,155		2,788		367			13.2	%		1.6	%
Other on-site operating expenses		10,251		11,217		(966	)		(8.6	%)		5.2	%
Total Same Store Operating Expenses (2) (includes Residential and Non-Residential)	$	198,489	$	193,210	$	5,279			2.7	%		100.0	%

2020 vs. 2019 Total Same Store Operating Expenses Including 73,585 Same Store Apartment Units $ in thousands
	2020		2019		$ Change (1)			% Change			% of 2020 Operating Expenses
Real estate taxes	$	337,939	$	325,332	$	12,607			3.9	%		43.7	%
On-site payroll		160,983		160,569		414			0.3	%		20.8	%
Utilities		102,768		101,137		1,631			1.6	%		13.3	%
Repairs and maintenance		93,620		94,766		(1,146	)		(1.2	%)		12.1	%
Insurance		24,310		20,597		3,713			18.0	%		3.2	%
Leasing and advertising		10,321		10,241		80			0.8	%		1.3	%
Other on-site operating expenses		43,538		44,860		(1,322	)		(2.9	%)		5.6	%
Total Same Store Operating Expenses (2) (includes Residential and Non-Residential)	$	773,479	$	757,502	$	15,977			2.1	%		100.0	%

(1)	Both quarter-over-quarter and year-over-year changes are due primarily to:
	Real estate taxes – Higher rates and assessed values continue to drive real estate tax growth across most markets.
	On-site payroll – Increase driven by higher employee benefit-related costs, partially offset by the transition to an enhanced operating platform and less overtime.
	Repairs and maintenance – Quarter-over-quarter increase primarily driven by COVID-19-related cleaning expenses and higher turnover expenses. Year-over-year 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 due to challenging conditions in the insurance market.
	Leasing and advertising – Quarter-over-quarter increase due primarily to enhanced digital advertising.
	Other on-site operating expenses – Decrease primarily due to reduced ground lease expense and lower legal expenses due to legislative suspension of evictions in many markets.
(2)	See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

Equity Residential
Debt Summary as of December 31, 2020 ($ in thousands)
	Debt Balances (1)		% of Total			Weighted Average Rates (1)			Weighted Average Maturities (years)
Secured	$	2,293,890		28.5	%		3.33	%		6.2
Unsecured		5,750,366		71.5	%		3.91	%		10.3
Total	$	8,044,256		100.0	%		3.76	%		9.0
Fixed Rate Debt:
Secured – Conventional	$	1,901,091		23.6	%		3.79	%		4.7
Unsecured – Public		5,335,536		66.4	%		4.03	%		11.0
Fixed Rate Debt		7,236,627		90.0	%		3.97	%		9.3
Floating Rate Debt:
Secured – Conventional		31,494		0.4	%		2.71	%		1.5
Secured – Tax Exempt		361,305		4.5	%		1.00	%		15.0
Unsecured – Revolving Credit Facility		—		—			1.47	%		3.8
Unsecured – Commercial Paper Program (2)		414,830		5.1	%		1.72	%		—
Floating Rate Debt		807,629		10.0	%		1.34	%		7.0
Total	$	8,044,256		100.0	%		3.76	%		9.0

(1)	See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
(2)	At December 31, 2020, the weighted average maturity of commercial paper outstanding was 45 days. The weighted average amount outstanding for the year ended December 31, 2020 was approximately $276.6 million.
Note: The Company capitalized interest of approximately $10.2 million and $6.9 million during the years ended December 31, 2020 and 2019, respectively. The Company capitalized interest of approximately $3.3 million and $2.1 million during the quarters ended December 31, 2020 and 2019, respectively.

Equity Residential
Debt Maturity Schedule as of December 31, 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)
2021	$	35,665	$	415,000	(2)	$	450,665		5.5	%		4.41	%		0.64	%
2022		264,185		31,855			296,040		3.7	%		3.25	%		3.15	%
2023		1,325,588		3,500			1,329,088		16.4	%		3.74	%		3.73	%
2024		—		6,100			6,100		0.1	%	N/A				0.10	%
2025		450,000		8,200			458,200		5.6	%