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Equity Residential Reports Fourth Quarter 2024 Results

EQR

Provides 2025 Guidance

Equity Residential (NYSE: EQR) today reported results for the quarter and year ended December 31, 2024 and has posted a Q4 2024 Management Presentation to its website as referenced below.

Fourth Quarter 2024 Results

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

Quarter Ended December 31,

2024

2023

$ Change

% Change

Earnings Per Share (EPS)

$

1.10

$

0.82

$

0.28

34.1

%

Funds from Operations (FFO) per share

$

0.97

$

1.00

$

(0.03

)

(3.0

%)

Normalized FFO (NFFO) per share

$

1.00

$

1.00

$

-

0.0

%

Year Ended December 31,

2024

2023

$ Change

% Change

Earnings Per Share (EPS)

$

2.72

$

2.20

$

0.52

23.6

%

Funds from Operations (FFO) per share

$

3.76

$

3.75

$

0.01

0.3

%

Normalized FFO (NFFO) per share

$

3.89

$

3.78

$

0.11

2.9

%

Recent Highlights

  • For the full year of 2024 compared to the full year of 2023, same store revenues increased 3.0%, same store expenses increased 2.9% and same store Net Operating Income (NOI) increased 3.1%.
  • The Company has provided guidance for the full year of 2025 with same store revenue growth expected to be between 2.25% and 3.25%.
  • During the fourth quarter of 2024, the Company acquired three properties, consisting of 795 apartment units, for an aggregate acquisition price of approximately $274.3 million at a weighted average Acquisition Cap Rate of 5.2%. These assets are located in the Company’s Expansion Markets of Atlanta and Denver. Also during the quarter, the company sold seven properties, consisting of 1,629 apartment units, for an aggregate sale price of approximately $610.1 million at a weighted average Disposition Yield of 5.2%.
  • The Company's Board of Trustees has voted to increase the Company's 2025 annual common share dividend by 2.6% to $2.77 per share reflecting confidence in the prospects of the business going forward. All dividend payments remain subject to declaration by the Board of Trustees in its sole discretion.
  • The Company was recognized for its commitment to sustainability with its inclusion in both the Dow Jones Sustainability World and North American Indices. The Company is the first residential REIT to receive this distinction. The Company was also recently honored with Nareit’s Residential Sector Leader in the Light award, further demonstrating its leadership in this area.

“Our 2024 operating results were solid and generally consistent with our expectations. We expect a steady improvement in our same store revenue results as we go through 2025 driven by higher lease rate growth, continued elevated occupancy levels and significant contributions from other income in 2025. Our view is underpinned by an assumption that the economy remains steady and is supported by continuing subdued levels of supply in our mostly coastal footprint, an expectation of positive employment conditions for our higher earning renter demographic and continued value creation by our industry leading operations platform. With new apartment supply in 2026 at decade lows in our coastal markets and declining significantly in our Expansion Markets of Atlanta, Dallas and Denver, the longer term set up for our business is outstanding,” said Mark J. Parrell, Equity Residential’s President and CEO.

Full Year 2025 Guidance

The Company has provided guidance for its full year 2025 same store operating performance, EPS, FFO per share, Normalized FFO per share and transactions as listed below:

Same Store (includes Residential and Non-Residential):

Physical Occupancy

96.2%

Revenue change

2.25% to 3.25%

Expense change

3.5% to 4.5%

NOI change

1.4% to 3.0%

EPS

$3.00 to $3.10

FFO per share

$3.87 to $3.97

Normalized FFO per share

$3.90 to $4.00

Transactions (1):

Consolidated rental acquisitions

$1.5B

Consolidated rental dispositions

$1.0B

Transaction Accretion (Dilution)

(25 basis points)

(1)

The Company expects to fund its acquisition activity with a combination of proceeds from dispositions and/or debt issuance.

The difference between the Company's full year 2024 actual EPS of $2.72 and the full year 2025 EPS guidance midpoint of $3.05 is due primarily to higher expected property sale gains, lower expected other expenses, lower expected non-operating asset gains and the items described below.

The difference between the Company's full year 2024 actual FFO of $3.76 per share and the full year 2025 FFO guidance midpoint of $3.92 per share is due primarily to lower expected other expenses, lower expected non-operating asset gains and the items described below.

The difference between the Company's full year 2024 actual Normalized FFO of $3.89 per share and the full year 2025 Normalized FFO guidance midpoint of $3.95 per share is due primarily to:

Expected
Positive/(Negative)
Impact

Full Year 2025 vs.
Full Year 2024

Residential same store NOI

$

0.12

Non-Residential same store NOI

(0.01

)

Lease-Up NOI (1)

0.01

2025 and 2024 transaction activity impact on NOI, net (2)

0.05

Interest expense, net (3)

(0.08

)

Corporate overhead (4)

(0.02

)

Other items

(0.01

)

Net

$

0.06

(1)

Lease-Up NOI reflects the contribution from consolidated lease-up properties only. The Company does not expect a contribution to growth in 2025 from recently completed unconsolidated joint venture development projects given the current lease-up velocity and cessation of capitalized interest on construction loans. See the income (loss) from investments in unconsolidated entities line item on page 28 for 2025 guidance on this matter.

(2)

Transaction activity impact on NOI, net represents acquisition NOI net of disposition NOI.

(3)

Interest expense, net is driven by higher rates on refinancing and higher balances due to 2024 and 2025 net investment activity.

(4)

Corporate overhead includes property management and general and administrative expenses.

The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 29 through 34 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 7, 31 and 32 of this release.

Results Per Share

The changes in EPS for the quarter and year ended December 31, 2024 compared to the same periods of 2023 are due primarily to higher property sale gains, higher depreciation expense, the various adjustment items listed on page 27 of this release and the items described below.

The per share changes in FFO for the quarter and year ended December 31, 2024 compared to the same periods of 2023 are due primarily to the various adjustment items listed on page 27 of this release and the items described below.

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

Positive/(Negative) Impact

Fourth Quarter 2024 vs.
Fourth Quarter 2023

Full Year 2024 vs.
Full Year 2023

Residential same store NOI

$

0.02

$

0.14

Non-Residential same store NOI

-

0.01

Lease-Up NOI

-

0.01

2024 and 2023 transaction activity impact on NOI, net

0.04

0.02

Interest expense, net

(0.03

)

(0.04

)

Corporate overhead

(0.01

)

(0.04

)

Other items

(0.02

)

0.01

Net

$

-

$

0.11

Same Store Results

The following table shows the total same store results for the periods presented (includes Residential and Non-Residential).

Fourth Quarter 2024 vs.
Fourth Quarter 2023

Fourth Quarter 2024 vs.
Third Quarter 2024

Full Year 2024 vs.
Full Year 2023

Apartment Units

75,876

77,016

75,299

Physical Occupancy

96.1% vs. 95.8%

96.1% vs. 96.1%

96.2% vs. 95.9%

Revenues

2.4%

0.4%

3.0%

Expenses

4.3%

(2.0%)

2.9%

NOI

1.6%

1.5%

3.1%

The following table reflects the detail of the change in Same Store Residential Revenues, which is presented on a GAAP basis showing Leasing Concessions on a straight-line basis.

Fourth Quarter 2024 vs.
Fourth Quarter 2023

Fourth Quarter 2024 vs.
Third Quarter 2024

Full Year 2024 vs.
Full Year 2023

% Change

% Change

% Change

Same Store Residential Revenues-

comparable period

Lease rates

1.8

%

0.1

%

2.3

%

Leasing Concessions

0.0

%

0.0

%

(0.2

%)

Vacancy gain (loss)

0.3

%

0.2

%

0.4

%

Bad Debt, Net (1)

0.2

%

0.0

%

0.2

%

Other (2)

0.2

%

0.1

%

0.3

%

Same Store Residential Revenues-

current period

2.5

%

0.4

%

3.0

%

(1)

Change in rental income due to bad debt write-offs and reserves, net of amounts (including governmental rental assistance payments) collected on previously written-off or reserved accounts. The full year 2024 vs. full year 2023 improvement in Bad Debt, Net was less than assumed in the midpoint of our same store revenue guidance range. See page 13 for more detail.

(2)

Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items.

See page 12 for detail and reconciliations of Same Store Residential Revenues on a GAAP basis to Same Store Residential Revenues with Leasing Concessions on a cash basis.

Residential Same Store Operating Statistics

The following table includes select operating metrics for Residential Same Store Properties (for 75,299 same store apartment units):

Q4 2024

Q3 2024

Q4 2023

Physical Occupancy

96.1%

96.1%

95.8%

Percentage of Residents Renewing by quarter

61.3%

56.7%

59.0%

New Lease Change

(4.3%)

(1.2%)

(4.6%)

Renewal Rate Achieved

5.0%

4.6%

5.1%

Blended Rate (1)

1.0%

2.0%

0.7%

(1)

Blended Rates for Established Markets were 1.4%, 2.4% and 0.9% for Q4 2024, Q3 2024 and Q4 2023, respectively. See page 17.

In the fourth quarter of 2024, Physical Occupancy and Blended Rate met our expectations and were consistent with seasonal patterns. For the first quarter of 2025, Blended Rate is expected to be between 1.4% and 2.2%.

Investment Activity

During the fourth quarter of 2024, the Company acquired three properties consisting of 795 apartment units, located in the Company’s Expansion Markets of Atlanta and Denver, for an aggregate acquisition price of approximately $274.3 million at a weighted average Acquisition Cap Rate of 5.2%. The acquired properties are one year old on average. During the fourth quarter of 2024, the Company sold seven properties, located in the Washington, D.C., Seattle, San Francisco and San Diego markets, consisting of 1,629 apartment units, for an aggregate sale price of approximately $610.1 million at a weighted average Disposition Yield of 5.2%. The properties sold during the fourth quarter of 2024 have an average age of 29 years.

During the full year of 2024, the Company acquired 18 properties, consisting of 5,373 apartment units, for an aggregate purchase price of approximately $1.6 billion at a weighted average Acquisition Cap Rate of 5.1%. The acquired properties are five years old on average. Also during the full year of 2024, the Company sold 13 properties consisting of 2,598 apartment units, for an aggregate sale price of approximately $975.6 million at a weighted average Disposition Yield of 5.4%. The properties sold during 2024 have an average age of 35 years.

During 2024, the Company completed four joint venture development projects in its Expansion Markets of Dallas/Ft. Worth and Denver, consisting of 1,262 apartment units, for a total cost of approximately $338.0 million. See the income (loss) from investments in unconsolidated entities line item on page 28 for the Company's 2025 guidance assumption for these and other unconsolidated assets. The Company also commenced construction in 2024 on three joint venture development projects in suburban Boston (two projects) and Seattle, consisting of 1,079 apartment units, for a total anticipated cost of approximately $539.4 million.

“We are particularly pleased with our progress in 2024 in adding almost $2 billion of newer, high quality assets to our Atlanta, Dallas and Denver Expansion Market portfolios, which we funded with a combination of older asset sales and opportunistically sourced long term debt. While operating conditions in these markets continue to be challenging given historically high new supply levels, we remain enthusiastic about the balance these markets will create in our portfolio from the strong rental growth we expect to see in future years once this supply is absorbed,” said Mr. Parrell.

First Quarter 2025 Guidance

The Company has established guidance ranges for the first quarter of 2025 EPS, FFO per share and Normalized FFO per share as listed below:

Q1 2025
Guidance

EPS

$0.63 to $0.67

FFO per share

$0.89 to $0.93

Normalized FFO per share

$0.90 to $0.94

The difference between the fourth quarter of 2024 actual EPS of $1.10 and the first quarter of 2025 EPS guidance midpoint of $0.65 is due primarily to lower expected property sale gains and the items described below.

The difference between the fourth quarter of 2024 actual FFO of $0.97 per share and the first quarter of 2025 FFO guidance midpoint of $0.91 per share is due primarily to the items described below.

The difference between the fourth quarter of 2024 actual Normalized FFO of $1.00 per share and the first quarter of 2025 Normalized FFO guidance midpoint of $0.92 per share is due primarily to:

Expected
Positive/(Negative)
Impact

First Quarter 2025 vs.
Fourth Quarter 2024

Residential same store NOI

$

(0.03

)

2025 and 2024 transaction activity impact on NOI, net

(0.02

)

Interest expense, net

0.01

Corporate overhead

(0.03

)

Other items

(0.01

)

Net

$

(0.08

)

About Equity Residential

Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. Equity Residential owns or has investments in 311 properties consisting of 84,249 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin. For more information on Equity Residential, please visit our website at www.equityapartments.com.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential’s management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, government regulations and competition. These and other risks and uncertainties are described under the heading “Risk Factors” in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website,www.equityapartments.com. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

A live web cast of the Company’s conference call discussing these results will take place tomorrow, Tuesday, February 4, 2025 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 webcast link.

Equity Residential

Consolidated Statements of Operations

(Amounts in thousands except per share data)

(Unaudited)

Year Ended December 31,

Quarter Ended December 31,

2024

2023

2024

2023

REVENUES

Rental income

$

2,980,108

$

2,873,964

$

766,779

$

727,500

EXPENSES

Property and maintenance

529,737

514,575

133,388

123,138

Real estate taxes and insurance

432,089

412,114

111,637

99,507

Property management

132,739

119,804

32,358

29,490

General and administrative

61,653

60,716

12,751

11,581

Depreciation

952,191

888,709

264,150

226,788

Total expenses

2,108,409

1,995,918

554,284

490,504

Net gain (loss) on sales of real estate properties

546,797

282,539

318,968

155,505

Interest and other income

30,329

22,345

3,828

11,049

Other expenses

(74,051

)

(29,419

)

(14,957

)

(8,902

)

Interest:

Expense incurred, net

(285,735

)

(269,556

)

(79,973

)

(68,674

)

Amortization of deferred financing costs

(7,834

)

(8,941

)

(2,050

)

(1,918

)

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

investments in unconsolidated entities and net gain (loss)

on sales of land parcels

1,081,205

875,014

438,311

324,056

Income and other tax (expense) benefit

(1,256

)

(1,148

)

(331

)

(256

)

Income (loss) from investments in unconsolidated entities

(8,974

)

(5,378

)

(4,109

)

(1,531

)

Net income

1,070,975

868,488

433,871

322,269

Net (income) loss attributable to Noncontrolling Interests:

Operating Partnership

(28,932

)

(26,710

)

(11,642

)

(9,536

)

Partially Owned Properties

(6,212

)

(6,340

)

(3,114

)

(1,041

)

Net income attributable to controlling interests

1,035,831

835,438

419,115

311,692

Preferred distributions

(1,613

)

(3,090

)

(355

)

(772

)

Premium on redemption of Preferred Shares

(1,444

)

Net income available to Common Shares

$

1,032,774

$

832,348

$

418,760

$

310,920

Earnings per share – basic:

Net income available to Common Shares

$

2.73

$

2.20

$

1.10

$

0.82

Weighted average Common Shares outstanding

378,795

378,773

379,023

379,247

Earnings per share – diluted:

Net income available to Common Shares

$

2.72

$

2.20

$

1.10

$

0.82

Weighted average Common Shares outstanding

390,740

390,897

391,195

390,787

Distributions declared per Common Share outstanding

$

2.70

$

2.65

$

0.675

$

0.6625

Equity Residential

Consolidated Statements of Funds From Operations and Normalized Funds From Operations

(Amounts in thousands except per share and Unit data)

(Unaudited)

Year Ended December 31,

Quarter Ended December 31,

2024

2023

2024

2023

Net income

$

1,070,975

$

868,488

$

433,871

$

322,269

Net (income) loss attributable to Noncontrolling Interests – Partially

Owned Properties

(6,212

)

(6,340

)

(3,114

)

(1,041

)

Preferred distributions

(1,613

)

(3,090

)

(355

)

(772

)

Premium on redemption of Preferred Shares

(1,444

)

Net income available to Common Shares and Units

1,061,706

859,058

430,402

320,456

Adjustments:

Depreciation

952,191

888,709

264,150

226,788

Depreciation – Non-real estate additions

(3,791

)

(4,268

)

(952

)

(977

)

Depreciation – Partially Owned Properties

(2,132

)

(2,130

)

(487

)

(531

)

Depreciation – Unconsolidated Properties

7,191

2,860

3,310

939

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

assets

(515

)

195

Net (gain) loss on sales of real estate properties

(546,797

)

(282,539

)

(318,968

)

(155,505

)

Noncontrolling Interests share of gain (loss) on sales

of real estate properties

1,857

2,336

1,857

FFO available to Common Shares and Units

1,469,710

1,464,026

379,507

391,170

Adjustments (see note for additional detail):

Write-off of pursuit costs

5,155

3,647

3,250

908

Debt extinguishment and preferred share redemption (gains)

losses

1,444

1,143

Non-operating asset (gains) losses

(16,311

)

(13,323

)

1,141

(8,588

)

Other miscellaneous items

61,608

21,588

8,176

6,757

Normalized FFO available to Common Shares and Units

$

1,521,606

$

1,477,081

$

392,074

$

390,247

FFO

$

1,472,767

$

1,467,116

$

379,862

$

391,942

Preferred distributions

(1,613

)

(3,090

)

(355

)

(772

)

Premium on redemption of Preferred Shares

(1,444

)

FFO available to Common Shares and Units

$

1,469,710

$

1,464,026

$

379,507

$

391,170

FFO per share and Unit – basic

$

3.77

$

3.75

$

0.97

$

1.00

FFO per share and Unit – diluted

$

3.76

$

3.75

$

0.97

$

1.00

Normalized FFO

$

1,523,219

$

1,480,171

$

392,429

$

391,019

Preferred distributions

(1,613

)

(3,090

)

(355

)

(772

)

Normalized FFO available to Common Shares and Units

$

1,521,606

$

1,477,081

$

392,074

$

390,247

Normalized FFO per share and Unit – basic

$

3.91

$

3.79

$

1.01

$

1.00

Normalized FFO per share and Unit – diluted

$

3.89

$

3.78

$

1.00

$

1.00

Weighted average Common Shares and Units outstanding – basic

389,425

389,954

389,560

389,844

Weighted average Common Shares and Units outstanding – diluted

390,740

390,897

391,195

390,787

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,

2024

2023

ASSETS

Land

$

5,606,531

$

5,581,876

Depreciable property

24,039,412

22,938,426

Projects under development

261,706

78,036

Land held for development

63,142

114,300

Investment in real estate

29,970,791

28,712,638

Accumulated depreciation

(10,412,463

)

(9,810,337

)

Investment in real estate, net

19,558,328

18,902,301

Investments in unconsolidated entities1

386,531

282,049

Cash and cash equivalents

62,302

50,743

Restricted deposits

97,864

89,252

Right-of-use assets

455,445

457,266

Other assets

273,706

252,953

Total assets

$

20,834,176

$

20,034,564

LIABILITIES AND EQUITY

Liabilities:

Mortgage notes payable, net

$

1,630,690

$

1,632,902

Notes, net

5,947,376

5,348,417

Line of credit and commercial paper

543,679

409,131

Accounts payable and accrued expenses

99,347

87,377

Accrued interest payable

74,176

65,716

Lease liabilities

304,897

311,640

Other liabilities

310,559

272,596

Security deposits

75,611

69,178

Distributions payable

263,494

259,231

Total liabilities

9,249,829

8,456,188

Commitments and contingencies

Redeemable Noncontrolling Interests – Operating Partnership

338,563

289,248

Equity:

Shareholders' equity:

Preferred Shares of beneficial interest, $0.01 par value;

100,000,000 shares authorized; 343,100 shares issued and

outstanding as of December 31, 2024 and 745,600 shares issued

and outstanding as of December 31, 2023

17,155

37,280

Common Shares of beneficial interest, $0.01 par value;

1,000,000,000 shares authorized; 379,475,383 shares issued

and outstanding as of December 31, 2024 and 379,291,417

shares issued and outstanding as of December 31, 2023

3,795

3,793

Paid in capital

9,611,826

9,601,866

Retained earnings

1,407,570

1,437,185

Accumulated other comprehensive income (loss)

4,214

5,704

Total shareholders’ equity

11,044,560

11,085,828

Noncontrolling Interests:

Operating Partnership

201,942

202,306

Partially Owned Properties

(718

)

994

Total Noncontrolling Interests

201,224

203,300

Total equity

11,245,784

11,289,128

Total liabilities and equity

$

20,834,176

$

20,034,564

1 Includes $324.0 million and $220.2 million in unconsolidated projects (primarily development) as of December 31, 2024 and December 31, 2023, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects.

Equity Residential

Portfolio Summary

As of December 31, 2024

% of
Stabilized

Average

Apartment

Budgeted

Rental

Markets/Metro Areas

Properties

Units

NOI

Rate

Established Markets:

Los Angeles

58

14,733

16.7

%

$

2,942

Orange County

12

3,718

4.7

%

2,949

San Diego

11

2,649

3.7

%

3,189

Subtotal – Southern California

81

21,100

25.1

%

2,974

Washington, D.C.

43

13,846

15.1

%

2,788

San Francisco

40

11,315

14.8

%

3,351

New York

34

8,536

14.1

%

4,690

Boston

27

7,237

11.3

%

3,643

Seattle

42

8,854

9.9

%

2,636

Subtotal – Established Markets

267

70,888

90.3

%

3,232

Expansion Markets:

Denver

15

4,408

4.0

%

2,369

Atlanta

14

4,356

3.1

%

2,020

Dallas/Ft. Worth

12

3,855

2.3

%

1,965

Austin

3

742

0.3

%

1,754

Subtotal – Expansion Markets

44

13,361

9.7

%

2,105

Total

311

84,249

100.0

%

$

3,056

Properties

Apartment Units

Wholly Owned Properties

295

80,331

Partially Owned Properties – Consolidated

12

2,656

Partially Owned Properties – Unconsolidated

4

1,262

311

84,249

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

Equity Residential

Portfolio Rollforward Q4 2024

($ in thousands)

Properties

Apartment
Units

Purchase
Price

Acquisition
Cap Rate

9/30/2024

312

84,018

Acquisitions:

Consolidated Rental Properties

2

568

$

183,000

5.0

%

Consolidated Rental Properties – Not Stabilized (1)

1

227

$

91,250

5.4

%

Sales Price

Disposition
Yield

Dispositions:

Consolidated Rental Properties

(7

)

(1,629

)

$

(610,141

)

(5.2

%)

Completed Developments – Unconsolidated

3

1,053

Configuration Changes

12

12/31/2024

311

84,249

Portfolio Rollforward 2024

($ in thousands)

Properties

Apartment
Units

Purchase
Price

Acquisition
Cap Rate

12/31/2023

302

80,191

Acquisitions:

Consolidated Rental Properties

16

4,986

$

1,438,250

5.1

%

Consolidated Rental Properties – Not Stabilized (1)

2

387

$

153,845

5.5

%

Unconsolidated Land Parcels (2)

$

33,394

Sales Price

Disposition
Yield

Dispositions:

Consolidated Rental Properties

(13

)

(2,598

)

$

(975,641

)

(5.4

%)

Completed Developments – Unconsolidated

4

1,262

Configuration Changes

21

12/31/2024

311

84,249

(1)

The Company acquired two properties during the year ended December 31, 2024, including a property in the Denver market in the fourth quarter of 2024, that are in lease-up and are expected to stabilize in their second year of ownership at the weighted average Acquisition Cap Rates listed above.

(2)

The Company previously entered into separate unconsolidated joint ventures for the purpose of developing vacant land parcels in suburban Boston, MA and suburban Seattle, WA. The joint ventures acquired their respective land parcels during the year ended December 31, 2024 for the total purchase price listed. The Company's total investment in these two joint ventures is approximately $90.9 million as of December 31, 2024. See Development and Lease-Up Projects for additional detail.

Equity Residential

Fourth Quarter 2024 vs. Fourth Quarter 2023

Same Store Results/Statistics Including 75,876 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands except for Average Rental Rate)

Results

Statistics

Description

Revenues

Expenses

NOI

Average
Rental
Rate

Physical
Occupancy

Turnover

Q4 2024

$

713,789

$

223,039

$

490,750

$

3,147

96.1

%

9.0

%

Q4 2023

$

696,874

$

213,905

$

482,969

$

3,080

95.8

%

9.4

%

Change

$

16,915

$

9,134

$

7,781

$

67

0.3

%

(0.4

%)

Change

2.4

%

4.3

%

1.6

%

2.2

%

Fourth Quarter 2024 vs. Third Quarter 2024

Same Store Results/Statistics Including 77,016 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands except for Average Rental Rate)

Results

Statistics

Description

Revenues

Expenses

NOI

Average
Rental
Rate

Physical
Occupancy

Turnover

Q4 2024

$

721,504

$

224,814

$

496,690

$

3,135

96.1

%

9.0

%

Q3 2024

$

718,813

$

229,507

$

489,306

$

3,125

96.1

%

13.3

%

Change

$

2,691

$

(4,693

)

$

7,384

$

10

0.0

%

(4.3

%)

Change

0.4

%

(2.0

%)

1.5

%

0.3

%

2024 vs. 2023

Same Store Results/Statistics Including 75,299 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands except for Average Rental Rate)

Results

Statistics

Description

Revenues

Expenses

NOI

Average
Rental
Rate

Physical
Occupancy

Turnover

2024

$

2,823,418

$

894,477

$

1,928,941

$

3,127

96.2

%

42.5

%

2023

$

2,740,193

$

869,635

$

1,870,558

$

3,047

95.9

%

44.0

%

Change

$

83,225

$

24,842

$

58,383

$

80

0.3

%

(1.5

%)

Change

3.0

%

2.9

%

3.1

%

2.6

%

Equity Residential

Same Store Residential Revenues – GAAP to Cash Basis (1)

($ in thousands)

Fourth Quarter 2024 vs. Fourth Quarter 2023

Fourth Quarter 2024 vs. Third Quarter 2024

2024 vs. 2023

75,876 Same Store Apartment Units

77,016 Same Store Apartment Units

75,299 Same Store Apartment Units

Q4 2024

Q4 2023

Q4 2024

Q3 2024

2024

2023

Same Store Residential Revenues (GAAP Basis)

$

688,118

$

671,373

$

695,808

$

693,324

$

2,716,579

$

2,638,467

Leasing Concessions amortized

5,036

4,724

5,326

5,217

19,698

14,508

Leasing Concessions granted

(5,822

)

(5,322

)

(5,944

)

(6,108

)

(20,125

)

(18,664

)

Same Store Residential Revenues with Leasing

Concessions on a cash basis

$

687,332

$

670,775

$

695,190

$

692,433

$

2,716,152

$

2,634,311

% change - GAAP revenue

2.5

%

0.4

%

3.0

%

% change - cash revenue

2.5

%

0.4

%

3.1

%

(1)

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

Same Store Net Operating Income By Quarter

Including 75,299 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands)

Q4 2024

Q3 2024

Q2 2024

Q1 2024

Q4 2023

Same store revenues

$

710,216

$

707,513

$

704,663

$

701,026

$

693,156

Same store expenses

222,179

225,459

220,203

226,636

212,904

Same store NOI

$

488,037

$

482,054

$

484,460

$

474,390

$

480,252

Equity Residential

Same Store Residential Accounts Receivable Balances

Including 75,299 Same Store Apartment Units

($ in thousands)

Balance Sheet (Other assets):

December 31, 2024

September 30, 2024

December 31, 2023

Residential accounts receivable balances

$

14,453

$

15,088

$

20,528

Allowance for doubtful accounts

(9,536

)

(9,691

)

(15,210

)

Net receivable balances

$

4,917

$

5,397

$

5,318

Straight-line receivable balances

$

8,779

(1)

$

7,976

$

8,352

(1)

Total same store Residential Leasing Concessions granted in the fourth quarter of 2024 were approximately $5.8 million. The straight-line receivable balance of $8.8 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in 2025.

Same Store Residential Bad Debt

Including 75,299 Same Store Apartment Units

($ in thousands)

Income Statement (Rental income):

Q4 2024

Q3 2024

Q4 2023

Bad debts before governmental rental assistance

$

7,927

$

7,513

$

9,060

Governmental rental assistance received

(362

)

(290

)

(376

)

Bad Debt, Net

$

7,565

$

7,223

$

8,684

Bad Debt, Net as a % of Same Store Residential Revenues (1)

1.1

%

1.1

%

1.3

%

(1)

Bad Debt, Net remained relatively constant in Q4 2024 versus Q4 2023 as compared to the Company's guidance assumption of continuing improvement.

Equity Residential

Fourth Quarter 2024 vs. Fourth Quarter 2023

Same Store Residential Results/Statistics by Market

Increase (Decrease) from Prior Year's Quarter

Markets/Metro Areas

Apartment
Units

Q4 2024
% of
Actual
NOI

Q4 2024
Average
Rental
Rate

Q4 2024
Weighted
Average
Physical
Occupancy %

Q4 2024
Turnover

Revenues

Expenses

NOI

Average
Rental
Rate

Physical
Occupancy

Turnover

Los Angeles

14,136

17.5

%

$

2,939

95.8

%

9.6

%

1.8

%

4.8

%

0.5

%

1.0

%

0.7

%

(1.3

%)

Orange County

3,718

5.2

%

2,949

95.6

%

9.4

%

1.4

%

8.0

%

(0.4

%)

2.1

%

(0.7

%)

0.7

%

San Diego

2,649

4.1

%

3,189

95.8

%

9.6

%

2.0

%

0.9

%

2.3

%

1.3

%

0.6

%

(1.4

%)

Subtotal – Southern California

20,503

26.8

%

2,973

95.7

%

9.5

%

1.7

%

4.8

%

0.6

%

1.3

%

0.4

%

(1.0

%)

San Francisco

11,093

16.2

%

3,355

96.1

%

10.4

%

2.1

%

(0.6

%)

3.2

%

1.4

%

0.7

%

(0.5

%)

Washington, D.C.

13,534

16.0

%

2,792

96.6

%

8.0

%

4.2

%

6.6

%

3.2

%

4.7

%

(0.4

%)

0.0

%

New York

8,536

14.5

%

4,690

97.4

%

6.5

%

3.6

%

4.8

%

2.7

%

2.7

%

0.8

%

(0.4

%)

Boston

7,077

11.1

%

3,665

95.3

%

7.8

%

2.2

%

6.6

%

0.5

%

2.7

%

(0.5

%)

(0.8

%)

Seattle

8,853

10.3

%

2,636

96.3

%

9.1

%

4.1

%

3.3

%

4.4

%

3.1

%

1.0

%

0.9

%

Denver

2,792

2.8

%

2,383

96.0

%

12.0

%

(1.2

%)

5.6

%

(3.9

%)

(1.2

%)

0.0

%

0.2

%

Other Expansion Markets

3,488

2.3

%

1,913

94.8

%

10.9

%

(4.8

%)

0.4

%

(8.3

%)

(4.8

%)

0.0

%

(1.9

%)

Total

75,876

100.0

%

$

3,147

96.1

%

9.0

%

2.5

%

4.2

%

1.7

%

2.2

%

0.3

%

(0.4

%)

Note: The above table reflects Residential same store results only. Residential operations account for more than 96.0% of total revenues for the year ended December 31, 2024.

Equity Residential

Fourth Quarter 2024 vs. Third Quarter 2024

Same Store Residential Results/Statistics by Market

Increase (Decrease) from Prior Quarter

Markets/Metro Areas

Apartment
Units

Q4 2024
% of
Actual
NOI

Q4 2024
Average
Rental
Rate

Q4 2024
Weighted
Average
Physical
Occupancy %

Q4 2024
Turnover

Revenues

Expenses

NOI

Average
Rental
Rate

Physical
Occupancy

Turnover

Los Angeles

14,136

17.3

%

$

2,939

95.8

%

9.6

%

0.3

%

(2.5

%)

1.5

%

0.0

%

0.3

%

(2.9

%)

Orange County

3,718

5.1

%

2,949

95.6

%

9.4

%

(0.1

%)

(2.1

%)

0.5

%

0.4

%

(0.5

%)

(1.3

%)

San Diego

2,649

4.0

%

3,189

95.8

%

9.6

%

0.7

%

(6.9

%)

2.9

%

0.5

%

0.1

%

(2.7

%)

Subtotal – Southern California

20,503

26.4

%

2,973

95.7

%

9.5

%

0.3

%

(2.9

%)

1.5

%

0.1

%

0.1

%

(2.6

%)

San Francisco

11,315

16.4

%

3,352

96.1

%

10.3

%

0.7

%

(6.6

%)

3.9

%

0.4

%

0.3

%

(2.3

%)

Washington, D.C.

13,846

16.2

%

2,788

96.6

%

8.0

%

0.6

%

(6.3

%)

4.0

%

0.6

%

0.0

%

(6.1

%)

New York

8,536

14.3

%

4,690

97.4

%

6.5

%

0.5

%

0.8

%

0.2

%

0.5

%

0.0

%

(4.5

%)

Boston

7,077

10.9

%

3,665

95.3

%

7.8

%

0.3

%

5.8

%

(1.9

%)

1.1

%

(0.8

%)

(7.1

%)

Seattle

8,853

10.2

%

2,636

96.3

%

9.1

%

0.4

%

(7.3

%)

3.7

%

0.3

%

0.2

%

(4.9

%)

Denver

2,792

2.8

%

2,383

96.0

%

12.0

%

(0.6

%)

(1.9

%)

(0.1

%)

(0.8

%)

0.2

%

(5.8

%)

Other Expansion Markets

4,094

2.8

%

1,904

95.0

%

10.7

%

(1.6

%)

12.2

%

(1)

(9.3

%)

(1.5

%)

(0.1

%)

(5.3

%)

Total

77,016

100.0

%

$

3,135

96.1

%

9.0

%

0.4

%

(2.2

%)

1.6

%

0.3

%

0.0

%

(4.3

%)

(1)

Expense increase primarily due to favorable Texas real estate taxes in the third quarter of 2024.

Note: The above table reflects Residential same store results only. Residential operations account for more than 96.0% of total revenues for the year ended December 31, 2024.

Equity Residential

2024 vs. 2023

Same Store Residential Results/Statistics by Market

Increase (Decrease) from Prior Year

Markets/Metro Areas

Apartment
Units

2024
% of
Actual
NOI

2024
Average
Rental
Rate

2024
Weighted
Average
Physical
Occupancy %

2024
Turnover

Revenues

Expenses

NOI

Average
Rental
Rate

Physical
Occupancy

Turnover

Los Angeles

14,136

17.7

%

$

2,933

95.6

%

43.3

%

2.9

%

2.8

%

2.9

%

2.5

%

0.3

%

(1.2

%)

Orange County

3,718

5.3

%

2,925

95.9

%

38.2

%

3.4

%

5.4

%

2.8

%

3.7

%

(0.4

%)

0.6

%

San Diego

2,649

4.1

%

3,167

95.9

%

40.6

%

4.1

%

1.5

%

4.8

%

3.5

%

0.5

%

(1.3

%)

Subtotal – Southern California

20,503

27.1

%

2,962

95.7

%

42.0

%

3.1

%

3.0

%

3.1

%

2.9

%

0.2

%

(0.9

%)

San Francisco

11,093

16.1

%

3,326

96.1

%

44.2

%

1.6

%

0.3

%

2.2

%

1.1

%

0.5

%

(0.1

%)

Washington, D.C.

13,534

15.9

%

2,743

96.8

%

40.7

%

4.6

%

3.9

%

5.0

%

4.6

%

0.0

%

0.0

%

New York

8,536

14.6

%

4,640

97.3

%

33.6

%

3.6

%

4.2

%

3.2

%

3.0

%

0.5

%

(3.6

%)

Boston

7,077

11.3

%

3,615

96.0

%

41.5

%

3.6

%

2.3

%

4.1

%

3.6

%

0.0

%

(2.6

%)

Seattle

8,853

10.2

%

2,607

96.2

%

45.2

%

2.3

%

4.5

%

1.4

%

1.2

%

1.0

%

(3.1

%)

Denver

2,505

2.6

%

2,410

96.2

%

54.9

%

0.0

%

1.1

%

(0.5

%)

0.2

%

(0.1

%)

(3.2

%)

Other Expansion Markets

3,198

2.2

%

1,946

95.1

%

56.9

%

(1.7

%)

(4.3

%)

(1)

0.2

%

(2.2

%)

0.3

%

(1.0

%)

Total

75,299

100.0

%

$

3,127

96.2

%

42.5

%

3.0

%

2.8

%

3.1

%

2.6

%

0.3

%

(1.5

%)

(1)

Expense decline primarily due to favorable Texas real estate taxes in the third quarter of 2024.

Note: The above table reflects Residential same store results only. Residential operations account for more than 96.0% of total revenues for the year ended December 31, 2024.

Equity Residential

Same Store Residential Net Effective Lease Pricing Statistics

For 75,299 Same Store Apartment Units

New Lease Change (1)

Renewal Rate Achieved (1)

Blended Rate (1)

Markets/Metro Areas

Q4 2024

Q3 2024

Q4 2024

Q3 2024

Q4 2024

Q3 2024

Southern California

(4.8

%)

(2.7

%)

4.4

%

4.2

%

0.4

%

0.9

%

San Francisco

(2.7

%)

(1.2

%)

6.6

%

5.3

%

2.5

%

2.0

%

Washington, D.C.

(2.7

%)

2.3

%

5.5

%

5.2

%

1.9

%

3.9

%

New York

(1.6

%)

0.9

%

4.3

%

4.1

%

2.3

%

2.9

%

Boston

(4.7

%)

1.5

%

4.4

%

5.1

%

1.1

%

3.6

%

Seattle

(6.1

%)

(4.0

%)

6.9

%

4.8

%

0.5

%

0.8

%

Subtotal – Established Markets

(3.7

%)

(0.5

%)

5.1

%

4.7

%

1.4

%

2.4

%

Denver

(12.5

%)

(10.0

%)

2.8

%

4.3

%

(5.4

%)

(3.1

%)

Other Expansion Markets

(13.5

%)

(13.9

%)

1.7

%

1.3

%

(7.0

%)

(6.9

%)

Subtotal – Expansion Markets

(13.0

%)

(11.8

%)

2.3

%

2.9

%

(6.1

%)

(4.9

%)

Total

(4.3

%)

(1.2

%)

5.0

%

4.6

%

1.0

%

2.0

%

(1)

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

Equity Residential

Fourth Quarter 2024 vs. Fourth Quarter 2023

Total Same Store Operating Expenses Including 75,876 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands)

Q4 2024

Q4 2023

$
Change

%
Change

% of
Q4 2024
Operating
Expenses

Real estate taxes

$

92,665

$

89,587

$

3,078

3.4

%

41.5

%

On-site payroll

41,772

41,315

457

1.1

%

18.7

%

Utilities

35,655

33,764

1,891

5.6

%

16.0

%

Repairs and maintenance

27,998

26,495

1,503

5.7

%

12.6

%

Insurance

9,179

8,344

835

10.0

%

4.1

%

Leasing and advertising

3,162

2,625

537

20.5

%

1.4

%

Other on-site operating expenses

12,608

11,775

833

7.1

%

5.7

%

Total Same Store Operating Expenses (2)

$

223,039

$

213,905

$

9,134

4.3

%

100.0

%

2024 vs. 2023

Total Same Store Operating Expenses Including 75,299 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands)

2024

2023

$
Change (1)

%
Change

% of
2024
Operating
Expenses

Real estate taxes

$

368,087

$

356,847

$

11,240

3.1

%

41.1

%

On-site payroll

168,006

167,486

520

0.3

%

18.8

%

Utilities

139,116

135,721

3,395

2.5

%

15.6

%

Repairs and maintenance

118,829

116,529

2,300

2.0

%

13.3

%

Insurance

36,551

33,227

3,324

10.0

%

4.1

%

Leasing and advertising

10,935

10,302

633

6.1

%

1.2

%

Other on-site operating expenses

52,953

49,523

3,430

6.9

%

5.9

%

Total Same Store Operating Expenses (2)

$

894,477

$

869,635

$

24,842

2.9

%

100.0

%

(1)

The year-over-year changes were primarily driven by the following factors:

Real estate taxes – Increase due to escalation in rates and assessed values including an approximately one percentage point contribution to growth from 421-a tax abatement burnoffs in New York City. Once the burnoffs are completed, previously rent-restricted apartment units will transition to market.

On-site payroll – Modest increase primarily driven by higher wages, partially offset by the impact of various innovation initiatives.

Utilities – Increase primarily driven by higher water, sewer and trash expense, partially offset by lower commodity prices for gas and electric.

Repairs and maintenance – Increase primarily driven by higher minimum wage on contracted services, partially offset by lower resident Turnover compared to the same period of 2023.

Insurance – Increase due to higher premiums on property insurance renewal due to conditions in the insurance market that while less difficult than recent years, remain challenging.

Other on-site operating expenses – Increase primarily driven by higher property-related legal expenses.

(2)

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

Equity Residential

Debt Summary as of December 31, 2024

($ in thousands)

Debt
Balances (1)

% of Total

Weighted
Average
Rates (1)

Weighted
Average
Maturities
(years)

Secured

$

1,630,690

20.1

%

3.84

%

6.9

Unsecured

6,491,055

79.9

%

3.70

%

7.3

Total

$

8,121,745

100.0

%

3.73

%

7.2

Fixed Rate Debt:

Secured – Conventional

$

1,401,099

17.3

%

3.89

%

6.4

Unsecured – Public

5,947,376

73.2

%

3.54

%

8.0

Fixed Rate Debt

7,348,475

90.5

%

3.61

%

7.7

Floating Rate Debt:

Secured – Tax Exempt

229,591

2.8

%

3.54

%

9.9

Unsecured – Revolving Credit Facility

5.98

%

2.8

Unsecured – Commercial Paper Program (2)

543,679

6.7

%

5.25

%

Floating Rate Debt

773,270

9.5

%

4.74

%

3.0

Total

$

8,121,745

100.0

%

3.73

%

7.2

(1)

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

(2)

At December 31, 2024, the weighted average maturity of commercial paper outstanding was 13 days. The weighted average amount outstanding for the year ended December 31, 2024 was approximately $535.7 million.

Note: The Company capitalized interest of approximately $14.5 million and $12.3 million during the years ended December 31, 2024 and 2023, respectively. The Company capitalized interest of approximately $3.8 million and $2.7 million during the quarters ended December 31, 2024 and 2023, respectively.

Equity Residential

Debt Maturity Schedule as of December 31, 2024

($ in thousands)

Year

Fixed
Rate

Floating
Rate

Total

% of Total

Weighted
Average Coupons
on Fixed
Rate Debt (1)

Weighted
Average
Coupons on
Total Debt (1)

2025

$

450,000

$

552,595

(2)

$

1,002,595

12.2

%

3.38

%

4.04

%

2026

592,025

9,000

601,025

7.3

%

3.58

%

3.58

%

2027

400,000

9,800

409,800

5.0

%

3.25

%

3.25

%

2028

900,000

10,700

910,700

11.1

%

3.79

%

3.78

%

2029

888,120

11,500

899,620

11.0

%

3.30

%

3.30

%

2030

1,148,462

12,700

1,161,162

14.2

%

2.53

%

2.54

%

2031

528,500

39,800

568,300

6.9

%

1.94

%

2.03

%

2032

28,100

28,100

0.4

%

3.58

%

2033

550,000

2,300

552,300

6.7

%

5.22

%

5.21

%

2034

600,000

2,400

602,400

7.4

%

4.65

%

4.64

%

2035+

1,350,850

106,200

1,457,050

17.8

%

4.39

%

4.24

%

Subtotal

7,407,957

785,095

8,193,052

100.0

%

3.62

%

3.66

%

Deferred Financing Costs and Unamortized (Discount)

(59,482

)

(11,825

)

(71,307

)

N/A

N/A

N/A

Total

$

7,348,475

$

773,270

$

8,121,745

100.0

%

3.62

%

3.66

%

(1)

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

(2)

Includes $544.5 million in principal outstanding on the Company's Commercial Paper Program.

Equity Residential

Selected Unsecured Public Debt Covenants