Equity Residential Reports Full Year 2020 Results

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	%			3.38	%			3.32	%
2026			592,025				9,000				601,025				7.4	%			3.58	%			3.53	%
2027			400,000				9,800				409,800				5.0	%			3.25	%			3.17	%
2028			900,000				42,380				942,380				11.6	%			3.79	%			3.62	%
2029			888,120				11,500				899,620				11.1	%			3.30	%			3.26	%
2030			1,095,000				12,600				1,107,600				13.6	%			2.55	%			2.52	%
2031+			1,350,850				275,535				1,626,385				20.0	%			4.39	%			3.67	%
Subtotal			7,301,433				825,470				8,126,903				100.0	%			3.56	%			3.23	%
Deferred Financing Costs and Unamortized (Discount)			(64,806	)			(17,841	)			(82,647	)		N/A				N/A				N/A
Total		$	7,236,627			$	807,629			$	8,044,256				100.0	%			3.56	%			3.23	%

(1)	See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
(2)	Represents principal outstanding on the Company’s commercial paper program.

Equity Residential
Selected Unsecured Public Debt Covenants
		December 31,			September 30,
		2020			2020
Debt to Adjusted Total Assets (not to exceed 60%)		30.5%			31.6%
Secured Debt to Adjusted Total Assets (not to exceed 40%)		9.6%			9.6%
Consolidated Income Available for Debt Service to
Maximum Annual Service Charges
(must be at least 1.5 to 1)		5.42			4.99
Total Unencumbered Assets to Unsecured Debt
(must be at least 125%)		457.1%			437.4%
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
		December 31,			September 30,
		2020			2020
Total debt to Normalized EBITDAre		4.99x			5.00x
Net debt to Normalized EBITDAre		4.96x			4.89x
Unencumbered NOI as a % of total NOI		86.6%			86.1%
Note: See Normalized EBITDAre Reconciliations for detail.

Equity Residential
Capital Structure as of December 31, 2020 (Amounts in thousands except for share/unit and per share amounts)
Secured Debt										$	2,293,890				28.5	%
Unsecured Debt											5,750,366				71.5	%
Total Debt											8,044,256				100.0	%			26.0	%
Common Shares (includes Restricted Shares)			372,302,000				96.4	%
Units (includes OP Units and Restricted Units)			13,858,073				3.6	%
Total Shares and Units			386,160,073				100.0	%
Common Share Price at December 31, 2020		$	59.28
											22,891,569				99.8	%
Perpetual Preferred Equity (see below)											37,280				0.2	%
Total Equity											22,928,849				100.0	%			74.0	%
Total Market Capitalization										$	30,973,105								100.0	%

Perpetual Preferred Equity as of December 31, 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
		2020				2019				Q4 2020				Q4 2019
Weighted Average Amounts Outstanding for Net Income Purposes:
Common Shares - basic			371,790,858				370,460,884				371,914,798				371,155,240
Shares issuable from assumed conversion/vesting of:
- OP Units			13,002,929				12,907,453				12,984,015				12,883,309
- long-term compensation shares/units			1,079,769				2,965,118				856,809				3,104,719
Total Common Shares and Units - diluted			385,873,556				386,333,455				385,755,622				387,143,268
Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes:
Common Shares - basic			371,790,858				370,460,884				371,914,798				371,155,240
OP Units - basic			13,002,929				12,907,453				12,984,015				12,883,309
Total Common Shares and OP Units - basic			384,793,787				383,368,337				384,898,813				384,038,549
Shares issuable from assumed conversion/vesting of:
- long-term compensation shares/units			1,079,769				2,965,118				856,809				3,104,719
Total Common Shares and Units - diluted			385,873,556				386,333,455				385,755,622				387,143,268
Period Ending Amounts Outstanding:
Common Shares (includes Restricted Shares)			372,302,000				371,670,884
Units (includes OP Units and Restricted Units)			13,858,073				13,731,315
Total Shares and Units			386,160,073				385,402,199

Equity Residential Development and Lease-Up Projects as of December 31, 2020 (Amounts in thousands except for project and apartment unit amounts)
				No. of				Total Budgeted				Total Book				Total Book Value Not												Estimated/Actual
Projects		Location		Apartment Units				Capital Cost				Value to Date				Placed in Service				Total Debt				Percentage Completed				Initial Occupancy				Completion Date		Stabilization Date		Percentage Leased				Percentage Occupied
Projects Under Development - Wholly Owned:
Alcott Apartments (fka West End Tower)		Boston, MA			470			$	409,749			$	267,783			$	267,783			$	—			67%				Q2 2021				Q3 2021		Q1 2023			—				—
The Edge (fka 4885 Edgemoor Lane) (A)		Bethesda, MD			154				75,271				52,312				52,312				—			70%				Q3 2021				Q3 2021		Q3 2022			—				—
Projects Under Development - Wholly Owned					624				485,020				320,095				320,095				—
Projects Under Development - Partially Owned:
Aero Apartments (B)		Alameda, CA			200				117,794				91,039				91,039				31,494			78%				Q1 2021				Q2 2021		Q2 2022			—				—
Projects Under Development - Partially Owned					200				117,794				91,039				91,039				31,494
Total Projects Under Development					824			$	602,814			$	411,134			$	411,134			$	31,494
Land Held for Development				N/A				N/A				$	86,170			$	86,170			$	—
NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS																								Total Budgeted Capital Cost				Q4 2020 NOI
Projects Under Development																								$	602,814			$	—

(A)	The Edge – The land under this project is subject to a long-term ground lease. This project is adjacent to an existing apartment property owned by the Company.
(B)	Aero Apartments – This development project is owned 90% by the Company and 10% by a third party partner in a joint venture consolidated by the Company. Construction is being partially funded with a construction loan that is non-recourse to the Company. The joint venture partner has funded $4.7 million for its allocated share of the project equity and serves as the developer of the project.

Equity Residential Capital Expenditures to Real Estate For the Year Ended December 31, 2020 (Amounts in thousands except for apartment unit and per apartment unit amounts)
			Same Store Properties				Non-Same Store Properties/Other				Total				Same Store Avg. Per Apartment Unit
Total Apartment Units				73,585				4,304				77,889
Building Improvements			$	78,969			$	2,905			$	81,874			$	1,073
Renovation Expenditures (1)				22,060				6				22,066				300
Replacements				31,252				787				32,039				425
Capital Expenditures to Real Estate (2)			$	132,281			$	3,698			$	135,979			$	1,798

(1)	Renovation Expenditures on 1,034 same store apartment units for the year ended December 31, 2020 approximated $21,335 per apartment unit renovated.
(2)	See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

Equity Residential Normalized EBITDAre Reconciliations (Amounts in thousands)
		Trailing Twelve Months								2020																2019
		December 31, 2020				September 30, 2020				Q4				Q3				Q2				Q1				Q4
Net income		$	962,501			$	1,000,823			$	262,984			$	95,365			$	271,481			$	332,671			$	301,306
Interest expense incurred, net			365,073				348,649				116,724				80,874				81,885				85,590				100,300
Amortization of deferred financing costs			8,939				9,259				2,686				2,101				2,111				2,041				3,006
Amortization of above/below market lease intangibles			4,391				4,391				1,098				1,098				1,098				1,097				1,098
Depreciation			820,832				833,885				201,829				200,605				205,976				212,422				214,882
Income and other tax expense (benefit)			852				(2,528	)			350				262				187				53				(3,030	)
EBITDA			2,162,588				2,194,479				585,671				380,305				562,738				633,874				617,562
Net (gain) loss on sales of real estate properties			(531,807	)			(530,455	)			(179,589	)			25				(144,266	)			(207,977	)			(178,237	)
Net (gain) loss on sales of unconsolidated entities - operating assets			(1,636	)			(1,000	)			(636	)			(1,000	)			—				—				—
EBITDAre			1,629,145				1,663,024				405,446				379,330				418,472				425,897				439,325
Write-off of pursuit costs (other expenses)			6,869				6,295				2,005				1,586				1,651				1,627				1,431
(Income) loss from investments in unconsolidated entities - operations			4,920				4,406				1,475				1,246				1,042				1,157				961
Net (gain) loss on sales of land parcels			(34,234	)			33				(34,234	)			—				—				—				33
Insurance/litigation settlement or reserve income (interest and other income)			(4,152	)			(2,353	)			(1,800	)			(3	)			(767	)			(1,582	)			(1	)
Insurance/litigation/environmental settlement or reserve expense (other expenses)			(1,293	)			3,936				—				500				(1,956	)			163				5,229
Advocacy contributions (other expenses)			11,062				4,146				6,981				1,728				1,852				501				65
Data analytics project (other expenses)			—				—				—				—				—				—				—
Other			(965	)			(1,108	)			(15	)			(429	)			(521	)			—				(158	)
Normalized EBITDAre		$	1,611,352			$	1,678,379			$	379,858			$	383,958			$	419,773			$	427,763			$	446,885
Balance Sheet Items:		December 31, 2020				September 30, 2020
Total debt		$	8,044,256			$	8,396,730
Cash and cash equivalents			(42,591	)			(178,333	)
Mortgage principal reserves/sinking funds			(14,168	)			(13,013	)
Net debt		$	7,987,497			$	8,205,384

Note:

EBITDA, EBITDAre and Normalized EBITDAre do not include any adjustments for the Company’s share of partially owned unconsolidated entities or the minority partner’s share of partially owned consolidated entities due to the immaterial size of the Company’s partially owned portfolio.

Equity Residential Adjustments from FFO to Normalized FFO (Amounts in thousands)
		Year Ended December 31,												Quarter Ended December 31,
		2020				2019				Variance				2020				2019				Variance
Impairment – non-operating assets		$	—			$	—			$	—			$	—			$	—			$	—
Write-off of pursuit costs (other expenses)			6,869				5,529				1,340				2,005				1,431				574
Prepayment premiums/penalties (interest expense)			26,150				13,647				12,503				26,150				10,266				15,884
Write-off of unamortized deferred financing costs (interest expense)			634				3,148				(2,514	)			597				875				(278	)
Write-off of unamortized (premiums)/discounts/OCI (interest expense)			12,508				7,196				5,312				12,508				1,043				11,465
Debt extinguishment and preferred share redemption (gains) losses			39,292				23,991				15,301				39,255				12,184				27,071
Net (gain) loss on sales of land parcels			(34,234	)			(2,044	)			(32,190	)			(34,234	)			33				(34,267	)
(Income) loss from investments in unconsolidated entities ─ non-operating assets			1,644				1,104				540				622				227				395
Non-operating asset (gains) losses			(32,590	)			(940	)			(31,650	)			(33,612	)			260				(33,872	)
Insurance/litigation settlement or reserve income (interest and other income)			(4,152	)			(384	)			(3,768	)			(1,800	)			(1	)			(1,799	)
Insurance/litigation/environmental settlement or reserve expense (other expenses)			(1,293	)			7,198				(8,491	)			—				5,229				(5,229	)
Advocacy contributions (other expenses)			11,062				270				10,792				6,981				65				6,916
Data analytics project (other expenses)			—				4,199				(4,199	)			—				—				—
Other			(965	)			(2,853	)			1,888				(15	)			(3,402	)			3,387
Other miscellaneous items			4,652				8,430				(3,778	)			5,166				1,891				3,275
Adjustments from FFO to Normalized FFO		$	18,223			$	37,010			$	(18,787	)		$	12,814			$	15,766			$	(2,952	)

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

Equity Residential Normalized FFO Guidance and Assumptions

The guidance/projections provided below are based on current expectations and are forward-looking. All guidance is given on a Normalized FFO basis. Therefore, certain items excluded from Normalized FFO, such as debt extinguishment costs/prepayment penalties and the write-off of pursuit costs, are not included in the estimates provided on this page. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.

	Q1 2021		Full Year 2021
2021 Normalized FFO Guidance (per share diluted)
Expected Normalized FFO Per Share	$0.65 to $0.69		$2.60 to $2.80
2021 Same Store Assumptions (includes Residential and Non-Residential)
Physical Occupancy			94.8% to 95.8%
Revenue change (1)			(9.0%) to (7.0%)
Expense change			3.0% to 4.0%
NOI change (2)			(15.0%) to (12.0%)
2021 Transaction Assumptions
The Company expects consolidated rental acquisitions to approximately equal consolidated rental dispositions.
2021 Debt Assumptions
Weighted average debt outstanding			$8.1B to $8.3B
Interest expense, net (on a Normalized FFO basis)			$270.0M to $276.5M
Capitalized interest			$14.5M to $16.5M
2021 Capital Expenditures to Real Estate Assumptions for Same Store Properties (3)
Capital Expenditures to Real Estate for Same Store Properties			$150.0M
Capital Expenditures to Real Estate per Same Store Apartment Unit			$1,950
2021 Other Guidance Assumptions
Property management expense			$96.5M to $98.5M
General and administrative expense			$53.0M to $55.0M
Debt offerings			No amounts budgeted
Weighted average Common Shares and Units - Diluted			386.8M

(1)	Revenue change is reflected on a GAAP basis. Revenue change would be approximately (8.0%) to (6.0%) on a cash basis.
(2)	Approximately 25 basis point change in NOI percentage = $0.01 per share change in EPS/FFO per share/Normalized FFO per share.
(3)	During 2021, the Company expects to spend approximately $25.0 million for apartment unit Renovation Expenditures on approximately 1,250 same store apartment units at an average cost of approximately $20,000 per apartment unit renovated, which is included in the Capital Expenditures to Real Estate assumptions noted above.

Equity Residential

Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms

(Amounts in thousands except per share and per apartment unit data)

(All per share data is diluted)

This Earnings Release and Supplemental Financial Information includes certain non-GAAP financial measures and other terms that management believes are helpful in understanding our business. The definitions and calculations of these non-GAAP financial measures and other terms may differ from the definitions and methodologies used by other real estate investment trusts (“REIT”) and, accordingly, may not be comparable. These non-GAAP financial measures should not be considered as an alternative to net earnings or any other measurement of performance computed in accordance with accounting principles generally accepted in the United States (“GAAP”) or as an alternative to cash flows from specific operating, investing or financing activities. Furthermore, these non-GAAP financial measures are not intended to be a measure of cash flow or liquidity.

Acquisition Capitalization Rate or Cap Rate – NOI that the Company anticipates receiving in the next 12 months (or the year two or three stabilized NOI for properties that are in lease-up at acquisition) less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $100-$450 per apartment unit depending on the age and condition of the asset) divided by the gross purchase price of the asset. The weighted average Acquisition Cap Rate for acquired properties is weighted based on the projected NOI streams and the relative purchase price for each respective property.

Average Rental Rate – Total Residential rental revenues reflected on a straight-line basis in accordance with GAAP divided by the weighted average occupied apartment units for the reporting period presented.

Bad Debt, Net – Reduction in rental income due to bad debt write-offs and reserves, net of amounts collected on previously written-off or reserved accounts.

Blended Rate – The weighted average of New Lease Change and Renewal Rate Achieved.

Capital Expenditures to Real Estate:

Building Improvements – Includes roof replacement, paving, building mechanical equipment systems, exterior siding and painting, major landscaping, furniture, fixtures and equipment for amenities and common areas, vehicles and office and maintenance equipment.

Renovation Expenditures – Apartment unit renovation costs (primarily kitchens and baths) designed to reposition these units for higher rental levels in their respective markets.

Replacements – Includes appliances, mechanical equipment, fixtures and flooring (including hardwood and carpeting).

Debt Balances:

Commercial Paper Program – The Company may borrow up to a maximum of $1.0 billion under its commercial paper program subject to market conditions. The notes bear interest at various floating rates.

Revolving Credit Facility – The Company’s $2.5 billion unsecured revolving credit facility matures November 1, 2024. The interest rate on advances under the facility will generally be LIBOR plus a spread (currently 0.775%), or based on bids received from the lending group, and an annual facility fee (currently 0.125%). Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating. In addition, the Company limits its utilization of the facility in order to maintain liquidity to support its $1.0 billion commercial paper program along with certain other obligations. The following table presents the availability on the Company’s unsecured revolving credit facility:

		December 31, 2020
Unsecured revolving credit facility commitment		$	2,500,000
Commercial paper balance outstanding			(415,000	)
Unsecured revolving credit facility balance outstanding			—
Other restricted amounts			(100,949	)
Unsecured revolving credit facility availability		$	1,984,051

Debt Covenant Compliance – Our unsecured debt includes certain financial and operating covenants including, among other things, maintenance of certain financial ratios. These provisions are contained in the indentures applicable to each notes payable or the credit agreement for our line of credit. The Debt Covenant Compliance ratios that are provided show the Company's compliance with certain covenants governing our public unsecured debt. These covenants generally reflect our most restrictive financial covenants. The Company was in compliance with its unsecured debt covenants for all periods presented.

Development Yield – NOI that the Company anticipates receiving in the next 12 months following stabilization less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $50-$150 per apartment unit depending on the type of asset) divided by the Total Budgeted Capital Cost of the asset. The weighted average Development Yield for development properties is weighted based on the projected NOI streams and the relative Total Budgeted Capital Cost for each respective property.

Disposition Yield – NOI that the Company anticipates giving up in the next 12 months less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $100-$450 per apartment unit depending on the age and condition of the asset) divided by the gross sales price of the asset. The weighted average Disposition Yield for sold properties is weighted based on the projected NOI streams and the relative sales price for each respective property.

Earnings Per Share ("EPS") – Net income per share calculated in accordance with GAAP. Expected EPS is calculated on a basis consistent with actual EPS. Due to the uncertain timing and extent of property dispositions and the resulting gains/losses on sales, actual EPS could differ materially from expected EPS.

EBITDA for Real Estate and Normalized EBITDA for Real Estate:

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”) – The National Association of Real Estate Investment Trusts (“Nareit”) defines EBITDAre (September 2017 White Paper) as net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for gains and losses from sales of depreciated operating properties, impairment write-downs of depreciated operating properties, impairment write-downs of investments in unconsolidated entities caused by a decrease in value of depreciated operating properties within the joint venture and adjustments to reflect the Company’s share of EBITDAre of investments in unconsolidated entities.

The Company believes that EBITDAre is useful to investors, creditors and rating agencies as a supplemental measure of the Company’s ability to incur and service debt because it is a recognized measure of performance by the real estate industry, and by excluding gains or losses related to sales or impairment of depreciated operating properties, EBITDAre can help compare the Company’s credit strength between periods or as compared to different companies.

Normalized Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“Normalized EBITDAre”) – Represents net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for non-comparable items. Normalized EBITDAre, total debt to Normalized EBITDAre and net debt to Normalized EBITDAre are important metrics in evaluating the credit strength of the Company and its ability to service its debt obligations. The Company believes that Normalized EBITDAre, total debt to Normalized EBITDAre, and net debt to Normalized EBITDAre are useful to investors, creditors and rating agencies because they allow investors to compare the Company’s credit strength to prior reporting periods and to other companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual credit quality.

Economic Gain (Loss) – Economic Gain (Loss) is calculated as the net gain (loss) on sales of real estate properties in accordance with GAAP, excluding accumulated depreciation. The Company generally considers Economic Gain (Loss) to be an appropriate supplemental measure to net gain (loss) on sales of real estate properties in accordance with GAAP because it is one indication of the gross value created by the Company's acquisition, development, renovation, management and ultimate sale of a property and because it helps investors to understand the relationship between the cash proceeds from a sale and the cash invested in the sold property. The following table presents a reconciliation of net gain (loss) on sales of real estate properties in accordance with GAAP to Economic Gain (Loss):

		Year Ended December 31, 2020				Quarter Ended December 31, 2020
Net Gain (Loss) on Sales of Real Estate Properties		$	531,807			$	179,589
Accumulated Depreciation Gain			(237,803	)			(80,332	)
Economic Gain (Loss)		$	294,004			$	99,257

FFO and Normalized FFO:

Funds From Operations (“FFO”) – Nareit defines FFO (December 2018 White Paper) as net income (computed in accordance with GAAP), excluding gains or losses from sales and impairment write-downs of depreciable real estate and land when connected to the main business of a REIT, impairment write-downs of investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity and depreciation and amortization related to real estate. Adjustments for partially owned consolidated and unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. Expected FFO per share is calculated on a basis consistent with actual FFO per share and is considered an appropriate supplemental measure of expected operating performance when compared to expected EPS.

The Company believes that FFO and FFO available to Common Shares and Units are helpful to investors as supplemental measures of the operating performance of a real estate company, because they are recognized measures of performance by the real estate industry and by excluding gains or losses from sales and impairment write-downs of depreciable real estate and excluding depreciation related to real estate (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO and FFO available to Common Shares and Units can help compare the operating performance of a company’s real estate between periods or as compared to different companies.

Normalized Funds From Operations ("Normalized FFO") – Normalized FFO begins with FFO and excludes:

• the impact of any expenses relating to non-operating asset impairment;

• pursuit cost write-offs;

• gains and losses from early debt extinguishment and preferred share redemptions;

• gains and losses from non-operating assets; and

• other miscellaneous items.

Expected Normalized FFO per share is calculated on a basis consistent with actual Normalized FFO per share and is considered an appropriate supplemental measure of expected operating performance when compared to expected EPS.

The Company believes that Normalized FFO and Normalized FFO available to Common Shares and Units are helpful to investors as supplemental measures of the operating performance of a real estate company because they allow investors to compare the Company's operating performance to its performance in prior reporting periods and to the operating performance of other real estate companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company's actual operating results.

FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units do not represent net income, net income available to Common Shares or net cash flows from operating activities in accordance with GAAP. Therefore, FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units should not be exclusively considered as alternatives to net income, net income available to Common Shares or net cash flows from operating activities as determined by GAAP or as a measure of liquidity. The Company's calculation of FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units may differ from other real estate companies due to, among other items, variations in cost capitalization policies for capital expenditures and, accordingly, may not be comparable to such other real estate companies.

FFO available to Common Shares and Units and Normalized FFO available to Common Shares and Units are calculated on a basis consistent with net income available to Common Shares and reflects adjustments to net income for preferred distributions and premiums on redemption of preferred shares in accordance with GAAP. The equity positions of various individuals and entities that contributed their properties to the Operating Partnership in exchange for OP Units are collectively referred to as the "Noncontrolling Interests – Operating Partnership". Subject to certain restrictions, the Noncontrolling Interests – Operating Partnership may exchange their OP Units for Common Shares on a one-for-one basis.

The following table presents reconciliations of EPS to FFO per share and Normalized FFO per share for Consolidated Statements of Funds From Operations and Normalized Funds From Operations.

										Actual				Actual				Expected			Expected
		Actual 2020				Actual 2019				Q4 2020				Q4 2019				Q1 2021			2021
		Per Share				Per Share				Per Share				Per Share				Per Share			Per Share
EPS – Diluted		$	2.45			$	2.60			$	0.68			$	0.77			$0.31 to $0.35			$2.55 to $2.75
Depreciation expense			2.11				2.13				0.52				0.55			0.51			2.02
Net (gain) loss on sales			(1.35	)			(1.34	)			(0.47	)			(0.46	)		(0.17)			(1.99)
Impairment – operating assets		—					—				—				—			—			—
FFO per share – Diluted			3.21				3.39				0.73				0.86			0.65 to 0.69			2.58 to 2.78
Impairment – non-operating assets			—				—				—				—			—			—
Write-off of pursuit costs			0.02				0.02				0.01				0.01			—			0.01
Debt extinguishment and preferred share
redemption (gains) losses			0.10				0.06				0.10				0.03			—			—
Non-operating asset (gains) losses			(0.08	)			—				(0.09	)			—			—			0.01
Other miscellaneous items			0.01				0.02				0.01				0.01			—			—
Normalized FFO per share – Diluted		$	3.26			$	3.49			$	0.76			$	0.91			$0.65 to $0.69			$2.60 to $2.80

Lease-Up NOI – Represents NOI for development properties: (i) in various stages of lease-up; and (ii) where lease-up has been completed but the properties were not stabilized (defined as having achieved 90% occupancy for three consecutive months) for all of the current and comparable periods presented.

Leasing Concessions – Reflects upfront discounts on both new move-in and renewal leases on a straight-line basis.

Net Operating Income (“NOI”) – NOI is the Company’s primary financial measure for evaluating each of its apartment properties. NOI is defined as rental income less direct property operating expenses (including real estate taxes and insurance). The Company believes that NOI is helpful to investors as a supplemental measure of its operating performance because it is a direct measure of the actual operating results of the Company's apartment properties. NOI does not include an allocation of property management expenses either in the current or comparable periods. Rental income for all leases and operating expense for ground leases (for both same store and non-same store properties) are reflected on a straight-line basis in accordance with GAAP for the current and comparable periods.

The following tables present reconciliations of operating income per the consolidated statements of operations to NOI, along with rental income, operating expenses and NOI per the consolidated statements of operations allocated between same store and non-same store/other results (see Same Store Results):

		Year Ended December 31,								Quarter Ended December 31,
		2020				2019				2020				2019
Operating income		$	1,317,990			$	1,356,160			$	356,606			$	408,928
Adjustments:
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
Net (gain) loss on sales of real estate
properties			(531,807	)			(447,637	)			(179,589	)			(178,237	)
Total NOI		$	1,749,145			$	1,887,707			$	412,251			$	479,842
Rental income:
Same store		$	2,419,018			$	2,519,235			$	600,254			$	655,887
Non-same store/other			152,687				181,456				13,181				28,008
Total rental income			2,571,705				2,700,691				613,435				683,895
Operating expenses:
Same store			773,479				757,502				198,489				193,210
Non-same store/other			49,081				55,482				2,695				10,843
Total operating expenses			822,560				812,984				201,184				204,053
NOI:
Same store			1,645,539				1,761,733				401,765				462,677
Non-same store/other			103,606				125,974				10,486				17,165
Total NOI		$	1,749,145			$	1,887,707			$	412,251			$	479,842

New Lease Change – The net effective change in rent (inclusive of Leasing Concessions) for a lease with a new or transferring resident compared to the rent for the prior lease of the identical apartment unit, regardless of lease term.

Non-Residential – Consists of revenues and expenses from retail and public parking garage operations.

Non-Same Store Properties – For annual comparisons, primarily includes all properties acquired during 2019 and 2020, plus any properties in lease-up and not stabilized as of January 1, 2019.

Percentage of Residents Renewing – Leases renewed expressed as a percentage of total renewal offers extended during the reporting period.

Physical Occupancy – The weighted average occupied apartment units for the reporting period divided by the average of total apartment units available for rent for the reporting period.

Pricing Trend – Weighted average of 12-month base rent including amenity amount less Leasing Concessions on 12-month signed leases for the reporting period.

Renewal Rate Achieved – The net effective change in rent (inclusive of Leasing Concessions) for a new lease on an apartment unit where the lease has been renewed as compared to the rent for the prior lease of the identical apartment unit, regardless of lease term.

Residential – Consists of multifamily apartment revenues and expenses.

Same Store Operating Expenses:

On-site Payroll – Includes payroll and related expenses for on-site personnel including property managers, leasing consultants, and maintenance staff.

Other On-site Operating Expenses – Includes ground lease costs and administrative costs such as office supplies, telephone and data charges and association and business licensing fees.

Repairs and Maintenance – Includes general maintenance costs, apartment unit turnover costs including interior painting, routine landscaping, security, exterminating, fire protection, snow removal, elevator, roof and parking lot repairs and other miscellaneous building repair and maintenance costs.

Utilities – Represents gross expenses prior to any recoveries under the Resident Utility Billing System (“RUBS”). Recoveries are reflected in rental income.

Same Store Properties – For annual comparisons, primarily includes all properties acquired or completed that are stabilized prior to January 1, 2019, less properties subsequently sold. Properties are included in Same Store when they are stabilized for all of the current and comparable periods presented.

Same Store Residential Revenues – Revenues from our Same Store Properties presented on a GAAP basis which reflects the impact of Leasing Concessions on a straight-line basis.

Same Store Residential Revenues with Leasing Concessions on a cash basis is presented in Same Store Results and is considered by the Company to be a supplemental measure to Same Store Residential Revenues in conformity with GAAP to help investors evaluate the impact of both current and historical Leasing Concessions on GAAP-based Same Store Residential Revenues and to more readily enable comparisons to revenue as reported by other companies. Same Store Residential Revenues with Leasing Concessions on a cash basis reflects the impact of Leasing Concessions used in the period and allows an investor to understand the historical trend in cash Leasing Concessions.

% of Stabilized Budgeted NOI – Represents original budgeted 2021 NOI for stabilized properties and projected annual NOI at stabilization (defined as having achieved 90% occupancy for three consecutive months) for properties that are in lease-up.

Total Budgeted Capital Cost – Estimated remaining cost for projects under development and/or developed plus all capitalized costs incurred to date, including land acquisition costs, construction costs, capitalized real estate taxes and insurance, capitalized interest and loan fees, permits, professional fees, allocated development overhead and other regulatory fees, plus any estimates of costs remaining to be funded for all projects, all in accordance with GAAP.

Total Market Capitalization – The aggregate of the market value of the Company’s outstanding common shares, including restricted shares, the market value of the Company’s operating partnership units outstanding, including restricted units (based on the market value of the Company’s common shares) and the outstanding principal balance of debt. The Company believes this is a useful measure of a real estate operating company’s long-term liquidity and balance sheet strength, because it shows an approximate relationship between a company’s total debt and the current total market value of its assets based on the current price at which the Company’s common shares trade. However, because this measure of leverage changes with fluctuations in the Company’s share price, which occur regularly, this measure may change even when the Company’s earnings, interest and debt levels remain stable.

Traffic – Consists of an expression of interest in an apartment by completing an in-person tour, self-guided tour or virtual tour that may result in an application to lease.

Transaction Accretion (Dilution) – Represents the spread between the Acquisition Cap Rate and the Disposition Yield.

Turnover – Total Residential move-outs (including inter-property and intra-property transfers) divided by total Residential apartment units.

Unencumbered NOI % – Represents NOI generated by consolidated real estate assets unencumbered by outstanding secured debt as a percentage of total NOI generated by all of the Company's consolidated real estate assets.

Unlevered Internal Rate of Return (“IRR”) – The Unlevered IRR on sold properties is the compound annual rate of return calculated by the Company based on the timing and amount of: (i) the gross purchase price of the property plus any direct acquisition costs incurred by the Company; (ii) total revenues earned during the Company’s ownership period; (iii) total direct property operating expenses (including real estate taxes and insurance) incurred during the Company’s ownership period; (iv) capital expenditures incurred during the Company’s ownership period; and (v) the gross sales price of the property net of selling costs.

The calculation of the Unlevered IRR does not include an adjustment for the Company’s property management expense, general and administrative expense or interest expense (including loan assumption costs and other loan-related costs). Therefore, the Unlevered IRR is not a substitute for net income as a measure of our performance. Management believes that the Unlevered IRR achieved during the period a property is owned by the Company is useful because it is one indication of the gross value created by the Company’s acquisition, development, renovation, management and ultimate sale of a property, before the impact of Company overhead. The Unlevered IRR achieved on the properties as cited in this release should not be viewed as an indication of the gross value created with respect to other properties owned by the Company, and the Company does not represent that it will achieve similar Unlevered IRRs upon the disposition of other properties. The weighted average Unlevered IRR for sold properties is weighted based on all cash flows over the investment period for each respective property, including net sales proceeds.

Weighted Average Coupons – Contractual interest rate for each debt instrument weighted by principal balances as of December 31, 2020. In case of debt for which fair value hedges are in place, the rate payable under the corresponding derivatives is used in lieu of the contractual interest rate.

Weighted Average Rates – Interest expense for each debt instrument for the year ended December 31, 2020 weighted by its average principal balance for the same period. Interest expense includes amortization of premiums, discounts and other comprehensive income on debt and related derivative instruments. In case of debt for which derivatives are in place, the income or expense recognized under the corresponding derivatives is included in the total interest expense for the period.

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