Equity Residential Reports Third Quarter 2023 Results

Equity Residential (NYSE: EQR) today reported results for the quarter and nine months ended September 30, 2023 and has posted a Q3 2023 Management Presentation to its website as referenced below.

Third Quarter 2023 Results

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

			Quarter Ended September 30,
			2023				2022				$ Change				% Change
	Earnings Per Share (EPS)		$	0.45			$	0.86			$	(0.41	)			(47.7	%)
	Funds from Operations (FFO) per share		$	0.96			$	0.90			$	0.06				6.7	%
	Normalized FFO (NFFO) per share		$	0.96			$	0.92			$	0.04				4.3	%
			Nine Months Ended September 30,
			2023				2022				$ Change				% Change
	Earnings Per Share (EPS)		$	1.38			$	1.63			$	(0.25	)			(15.3	%)
	Funds from Operations (FFO) per share		$	2.74			$	2.56			$	0.18				7.0	%
	Normalized FFO (NFFO) per share		$	2.78			$	2.58			$	0.20				7.8	%

Recent Highlights

• Same store revenue increased 4.1% for the third quarter of 2023 compared to the third quarter of 2022 and was negatively impacted by weaker than expected revenue performance in San Francisco and Seattle as well as the non-cash write-off of approximately $1.5 million in straight-line receivables due to the recent bankruptcy of Rite Aid. The Company revised its 2023 annual same store revenue growth guidance to 5.5% as further described in this release and in the Management Presentation referenced below.
• Bad debt before the application of governmental rental assistance has improved substantially for the nine months ended September 2023 as compared to the same period in 2022, albeit slightly less than our prior expectations due to the timing associated with current eviction proceedings. See page 13 for additional details.
• Same store expense growth for the third quarter of 2023 compared to the third quarter of 2022 was 3.1%. The Company also reaffirmed its full year 2023 same store expense growth at 4.25%.
• During the third quarter of 2023, the Company acquired two suburban Atlanta apartment properties, consisting of 634 apartment units, for an aggregate acquisition price of approximately $179.7 million and sold a 166-unit apartment property in Seattle for approximately $60.1 million. Subsequent to the end of the quarter, the Company sold three operating properties for a total of approximately $184.6 million.
• The Company recently published its tenth annual Environmental, Social and Governance (ESG) report highlighting Equity Residential's goals and accomplishments.

“Our East Coast portfolio performed very well in the quarter. Strong demand combined with low supply in Boston and New York and rapid absorption of supply in Washington, D.C. position these markets favorably going forward. While the East Coast outperformed our expectations, the San Francisco and Seattle markets underperformed due to lower recent job growth in our target affluent renter demographic and, together with the Rite Aid bankruptcy, led us to adjust guidance,” said Mark J. Parrell, Equity Residential’s President and CEO. “We are pleased with our progress in reducing our COVID era delinquency but the legal process is lengthy and uneven and we will likely end the year with modestly more delinquency than our previous goal. As we think about 2024 operating performance, continued demand from our well-employed renter demographic and limited new supply in most of our markets should lead to another year of solid same store revenue growth.”

Full Year 2023 Guidance

The Company has revised its guidance for its full year 2023 same store operating performance, EPS, FFO per share and Normalized FFO per share as listed below:

		Revised		Previous		Change at Midpoint
Same Store (includes Residential and Non-Residential):
Physical Occupancy		95.9%		96.0%		(0.1%)
Revenue change		5.5%		5.5% to 6.25%		(0.375%)
Expense change		4.25%		4.0% to 4.5%		0.00%
Net Operating Income (NOI) change		6.2%		6.3% to 7.0%		(0.45%)
EPS		$2.20 to $2.22		$1.95 to $2.01		$0.23
FFO per share		$3.74 to $3.76		$3.72 to $3.78		$0.00
Normalized FFO per share		$3.77 to $3.79		$3.77 to $3.83		($0.02)

The change in the full year 2023 EPS guidance range is due primarily to higher expected property sale gains, partially offset by lower expected Residential and Non-Residential same store NOI and higher expected depreciation expense.

The change in the full year 2023 Normalized FFO per share guidance range is due primarily to lower expected Residential and Non-Residential same store NOI.

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 nine months ended September 30, 2023 compared to the same periods of 2022 are due primarily to lower property sale gains in the current periods, 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 nine months ended September 30, 2023 compared to the same periods of 2022 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
		Third Quarter 2023 vs. Third Quarter 2022				September YTD 2023 vs. September YTD 2022
Residential same store NOI		$	0.06			$	0.22
Non-Residential same store NOI (1)			(0.01	)			—
Lease-Up NOI			—				0.02
2023 and 2022 transaction activity impact on NOI, net			—				(0.02	)
Interest expense, net			—				0.03
Corporate overhead (2)			(0.01	)			(0.02	)
Other items (3)			—				(0.03	)
Net		$	0.04			$	0.20

(1)		During the third quarter of 2023, the Company recorded a non-cash write-off of approximately $1.5 million in straight-line receivables due to the recent bankruptcy of Rite Aid.
(2)		Corporate overhead includes property management and general and administrative expenses.
(3)		Primarily represents the negative impact from property damage associated with the California rain storms that occurred earlier this year.

Same Store Results

The following table shows the total same store results for the periods presented.

		Third Quarter 2023 vs. Third Quarter 2022		Third Quarter 2023 vs. Second Quarter 2023		September YTD 2023 vs. September YTD 2022
Apartment Units		77,698		78,368		76,789
Physical Occupancy		96.0% vs. 96.4%		96.0% vs. 95.9%		95.9% vs. 96.5%
Revenues		4.1%		0.7%		6.2%
Expenses		3.1%		1.9%		5.3%
NOI		4.6%		0.1%		6.6%

On page 11 of this release, the Company has provided a breakout of Residential and Non-Residential same store results with definitions that can be found on page 33 of this release. Non-Residential operations account for approximately 3.6% of total revenues for the nine months ended September 30, 2023.

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.

		Third Quarter 2023 vs. Third Quarter 2022				Third Quarter 2023 vs. Second Quarter 2023				September YTD 2023 vs. September YTD 2022
		% Change				% Change				% Change
Same Store Residential Revenues-   comparable period
Lease rates			5.0	%			1.3	%			7.1	%
Leasing Concessions			(0.4	%)			(0.1	%)			(0.1	%)
Vacancy gain (loss)			(0.5	%)			(0.2	%)			(0.7	%)
Bad Debt, Net (1)			(0.3	%)			0.0	%			(0.7	%)
Other (2)			0.6	%			0.0	%			0.7	%
Same Store Residential Revenues-   current period			4.4	%			1.0	%			6.3	%

(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. Comparable period changes in quarterly Bad Debt, Net will be volatile throughout 2023 primarily due to the timing of the current legal processes and governmental rental assistance received in 2022. 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 76,789 same store apartment units):

		October 2023 (1)		Q3 2023		Q2 2023
Physical Occupancy		96.0%		96.0%		95.9%
Percentage of Residents Renewing by quarter/month		59.0%		54.0%		57.0%
New Lease Change (2)		(3.1%)		0.5%		2.3%
Renewal Rate Achieved		5.0%		5.5%		5.9%
Blended Rate		1.6%		3.1%		4.3%

(1)		October 2023 results are preliminary as of October 27th.
(2)		Excluding the impact of San Francisco and Seattle, New Lease Change would have been (0.3%), 2.1% and 3.6% for October 2023, Q3 2023 and Q2 2023, respectively, which is in line with the Company's expectations and consistent with normal seasonal patterns.

Investment Activity

The Company acquired two operating properties, both in suburban Atlanta, during the third quarter of 2023 - a recently completed 344-unit apartment property in Suwanee, which is currently in lease up, for approximately $98.0 million at a stabilized Acquisition Cap Rate of 5.4% and a 290-unit property in Decatur built in 2019, for approximately $81.7 million at an Acquisition Cap Rate of 5.1%. During the first nine months of 2023, the Company has acquired four operating properties, consisting of 1,183 apartment units, for an aggregate purchase price of approximately $366.3 million at a weighted average Acquisition Cap Rate of 5.5%.

Also during the third quarter of 2023, the Company sold a 166-unit property in Seattle for approximately $60.1 million at a Disposition Yield of 5.4%, generating an Unlevered IRR of 7.5%. During the first nine months of 2023, the Company sold eight properties, consisting of 413 apartment units, for an aggregate sale price of approximately $195.4 million at a weighted average Disposition Yield of 5.3%, generating an Unlevered IRR of 8.5%. Subsequent to the end of the quarter, the Company sold three properties located in our West Coast markets (San Francisco, Seattle and Los Angeles), consisting of 499 apartment units, for an aggregate sale price of approximately $184.6 million at a weighted average Disposition Yield of 5.8%.

Capital Markets Activity

In August 2023, the Company closed on secured loans totaling $550.0 million. The Company previously disclosed the rate lock on these loans in July 2023. After the effect of the Company’s hedges, the economic rate on these ten-year loans is approximately 4.7%. The proceeds from these loans were used, along with funding from the Company’s Commercial Paper Program, to paydown the $800.0 million secured debt pool that was due to mature in November 2023 and carried an interest rate of 4.21%. After this paydown, the Company has no significant debt maturities, other than commercial paper, which is supported by its revolving credit facility due 2027, until June 2025.

Fourth Quarter 2023 Guidance

The Company has established guidance ranges for the fourth quarter of 2023 EPS, FFO per share and Normalized FFO per share as listed below:

		Q4 2023 Guidance
EPS		$0.82 to $0.84
FFO per share		$1.00 to $1.02
Normalized FFO per share		$0.99 to $1.01

The difference between the third quarter of 2023 actual EPS of $0.45 and the fourth quarter of 2023 EPS guidance midpoint of $0.83 is due primarily to higher expected property sale gains and the items described below.

The difference between the third quarter of 2023 actual FFO of $0.96 per share and the fourth quarter of 2023 FFO guidance midpoint of $1.01 per share is due primarily to the items described below.

The difference between the third quarter of 2023 actual Normalized FFO of $0.96 per share and the fourth quarter of 2023 Normalized FFO guidance midpoint of $1.00 per share is due primarily to:

		Positive/(Negative) Impact
		Fourth Quarter 2023 vs. Third Quarter 2023
Residential same store NOI		$	0.02
Non-Residential same store NOI			0.01
Corporate overhead			0.01
Net		$	0.04

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 305 properties consisting of 80,683 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, Wednesday, November 1, 2023 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)
		Nine Months Ended September 30,								Quarter Ended September 30,
		2023				2022				2023				2022
REVENUES
Rental income		$	2,146,464			$	2,035,477			$	724,067			$	695,099
EXPENSES
Property and maintenance			391,437				365,277				129,087				124,048
Real estate taxes and insurance			312,607				302,899				102,858				100,361
Property management			90,314				83,035				28,169				25,729
General and administrative			49,135				47,033				14,094				13,372
Depreciation			661,921				667,896				224,736				214,129
Total expenses			1,505,414				1,466,140				498,944				477,639
Net gain (loss) on sales of real estate properties			127,034				304,346				26,912				196,551
Operating income			768,084				873,683				252,035				414,011
Interest and other income			11,296				4,844				7,627				720
Other expenses			(20,517	)			(9,191	)			(4,958	)			(3,755	)
Interest:
Expense incurred, net			(200,882	)			(217,093	)			(68,891	)			(72,412	)
Amortization of deferred financing costs			(7,023	)			(6,421	)			(3,027	)			(2,220	)
Income before income and other taxes, income (loss) from   investments in unconsolidated entities and net gain (loss)   on sales of land parcels			550,958				645,822				182,786				336,344
Income and other tax (expense) benefit			(892	)			(725	)			(258	)			(152	)
Income (loss) from investments in unconsolidated entities			(3,847	)			(3,456	)			(1,242	)			(1,027	)
Net income			546,219				641,641				181,286				335,165
Net (income) loss attributable to Noncontrolling Interests:
Operating Partnership			(17,174	)			(21,024	)			(5,561	)			(10,997	)
Partially Owned Properties			(5,299	)			(2,726	)			(3,217	)			(1,143	)
Net income attributable to controlling interests			523,746				617,891				172,508				323,025
Preferred distributions			(2,318	)			(2,318	)			(773	)			(773	)
Net income available to Common Shares		$	521,428			$	615,573			$	171,735			$	322,252
Earnings per share – basic:
Net income available to Common Shares		$	1.38			$	1.64			$	0.45			$	0.86
Weighted average Common Shares outstanding			378,614				375,710				378,853				375,850
Earnings per share – diluted:
Net income available to Common Shares		$	1.38			$	1.63			$	0.45			$	0.86
Weighted average Common Shares outstanding			391,135				389,394				391,351				389,300
Distributions declared per Common Share outstanding		$	1.9875			$	1.875			$	0.6625			$	0.625

Equity Residential
Consolidated Statements of Funds From Operations and Normalized Funds From Operations
(Amounts in thousands except per share and Unit data)
(Unaudited)
		Nine Months Ended September 30,								Quarter Ended September 30,
		2023				2022				2023				2022
Net income		$	546,219			$	641,641			$	181,286			$	335,165
Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties			(5,299	)			(2,726	)			(3,217	)			(1,143	)
Preferred distributions			(2,318	)			(2,318	)			(773	)			(773	)
Net income available to Common Shares and Units			538,602				636,597				177,296				333,249
Adjustments:
Depreciation			661,921				667,896				224,736				214,129
Depreciation – Non-real estate additions			(3,291	)			(3,189	)			(1,032	)			(1,075	)
Depreciation – Partially Owned Properties			(1,599	)			(2,097	)			(544	)			(543	)
Depreciation – Unconsolidated Properties			1,921				1,897				695				657
Net (gain) loss on sales of unconsolidated entities - operating   assets			—				(9	)			—				—
Net (gain) loss on sales of real estate properties			(127,034	)			(304,346	)			(26,912	)			(196,551	)
Noncontrolling Interests share of gain (loss) on sales   of real estate properties			2,336				—				2,336				—
FFO available to Common Shares and Units			1,072,856				996,749				376,575				349,866
Adjustments (see note for additional detail):
Write-off of pursuit costs			2,739				3,296				746				781
Debt extinguishment and preferred share redemption (gains)   losses			1,143				4,316				1,096				3,847
Non-operating asset (gains) losses			(4,735	)			(1,174	)			(5,766	)			156
Other miscellaneous items			14,831				1,832				3,488				2,017
Normalized FFO available to Common Shares and Units		$	1,086,834			$	1,005,019			$	376,139			$	356,667
FFO		$	1,075,174			$	999,067			$	377,348			$	350,639
Preferred distributions			(2,318	)			(2,318	)			(773	)			(773	)
FFO available to Common Shares and Units		$	1,072,856			$	996,749			$	376,575			$	349,866
FFO per share and Unit – basic		$	2.75			$	2.57			$	0.97			$	0.90
FFO per share and Unit – diluted		$	2.74			$	2.56			$	0.96			$	0.90
Normalized FFO		$	1,089,152			$	1,007,337			$	376,912			$	357,440
Preferred distributions			(2,318	)			(2,318	)			(773	)			(773	)
Normalized FFO available to Common Shares and Units		$	1,086,834			$	1,005,019			$	376,139			$	356,667
Normalized FFO per share and Unit – basic		$	2.79			$	2.59			$	0.96			$	0.92
Normalized FFO per share and Unit – diluted		$	2.78			$	2.58			$	0.96			$	0.92
Weighted average Common Shares and Units outstanding – basic			389,991				387,603				390,087				387,745
Weighted average Common Shares and Units outstanding – diluted			391,135				389,394				391,351				389,300

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)
		September 30,				December 31,
		2023				2022
ASSETS
Land		$	5,593,425			$	5,580,878
Depreciable property			22,911,464				22,334,369
Projects under development			61,411				112,940
Land held for development			62,533				60,567
Investment in real estate			28,628,833				28,088,754
Accumulated depreciation			(9,634,013	)			(9,027,850	)
Investment in real estate, net			18,994,820				19,060,904
Investments in unconsolidated entities1			313,225				279,024
Cash and cash equivalents			39,250				53,869
Restricted deposits			87,477				83,303
Right-of-use assets			460,489				462,956
Other assets			213,714				278,206
Total assets		$	20,108,975			$	20,218,262
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net		$	1,634,726			$	1,953,438
Notes, net			5,346,895				5,342,329
Line of credit and commercial paper			497,636				129,955
Accounts payable and accrued expenses			164,975				96,028
Accrued interest payable			47,519				66,310
Lease liabilities			312,781				308,748
Other liabilities			231,652				306,941
Security deposits			69,498				68,940
Distributions payable			259,624				244,621
Total liabilities			8,565,306				8,517,310
Commitments and contingencies
Redeemable Noncontrolling Interests – Operating Partnership			277,782				318,273
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 September 30, 2023 and December 31, 2022			37,280				37,280
Common Shares of beneficial interest, $0.01 par value;   1,000,000,000 shares authorized; 379,723,838 shares issued   and outstanding as of September 30, 2023 and 378,429,708   shares issued and outstanding as of December 31, 2022			3,797				3,784
Paid in capital			9,589,057				9,476,085
Retained earnings			1,426,632				1,658,837
Accumulated other comprehensive income (loss)			5,099				(2,547	)
Total shareholders’ equity			11,061,865				11,173,439
Noncontrolling Interests:
Operating Partnership			205,845				209,961
Partially Owned Properties			(1,823	)			(721	)
Total Noncontrolling Interests			204,022				209,240
Total equity			11,265,887				11,382,679
Total liabilities and equity		$	20,108,975			$	20,218,262

¹ Includes $250.9 million and $218.0 million in unconsolidated development projects as of September 30, 2023 and December 31, 2022, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects.

Equity Residential Portfolio Summary As of September 30, 2023

										% of
										Stabilized				Average
						Apartment				Budgeted				Rental
Markets/Metro Areas		Properties				Units				NOI				Rate
Established Markets:
Los Angeles			59				15,012				17.6	%		$	2,911
Orange County			13				4,028				5.2	%			2,826
San Diego			12				2,878				4.0	%			3,063
Subtotal – Southern California			84				21,918				26.8	%			2,915
San Francisco			44				11,790				15.8	%			3,304
Washington, D.C.			48				15,028				15.6	%			2,647
New York			34				8,536				13.9	%			4,531
Boston			27				7,170				11.4	%			3,525
Seattle			45				9,363				10.7	%			2,571
Subtotal – Established Markets			282				73,805				94.2	%			3,126
Expansion Markets:
Denver			9				2,785				2.8	%			2,409
Atlanta			7				2,111				1.9	%			2,160
Dallas/Ft. Worth			4				1,241				0.7	%			1,897
Austin			3				741				0.4	%			1,855
Subtotal – Expansion Markets			23				6,878				5.8	%			2,182
Total			305				80,683				100.0	%		$	3,046

		Properties		Apartment Units
Wholly Owned Properties		291		77,623
Partially Owned Properties – Consolidated		14		3,060
		305		80,683

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

Equity Residential

Portfolio Rollforward Q3 2023
($ in thousands)
		Properties				Apartment Units				Purchase Price				Acquisition Cap Rate
6/30/2023			304				80,212
Acquisitions:
Consolidated Rental Properties			1				290			$	81,734				5.1	%
Consolidated Rental Properties – Not Stabilized (1)			1				344			$	98,000				5.4	%
										Sales Price				Disposition Yield
Dispositions:
Consolidated Rental Properties			(1	)			(166	)		$	(60,100	)			(5.4	%)
Configuration Changes			—				3
9/30/2023			305				80,683

Portfolio Rollforward 2023
($ in thousands)
		Properties				Apartment Units				Purchase Price				Acquisition Cap Rate
12/31/2022			308				79,597
Acquisitions:
Consolidated Rental Properties			2				577			$	189,734				5.1	%
Consolidated Rental Properties – Not Stabilized (1)			2				606			$	176,600				5.9	%
										Sales Price				Disposition Yield
Dispositions:
Consolidated Rental Properties			(8	)			(413	)		$	(195,400	)			(5.3	%)
Completed Developments – Consolidated			1				312
Configuration Changes			—				4
9/30/2023			305				80,683

(1)

The Company acquired two properties in the Atlanta market during the nine months ended September 30, 2023, including a property in the third quarter of 2023, 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.

Equity Residential

Third Quarter 2023 vs. Third Quarter 2022
Same Store Results/Statistics Including 77,698 Same Store Apartment Units
($ in thousands except for Average Rental Rate)
Third Quarter 2023																				Third Quarter 2022
		Residential				% Change		Non- Residential				% Change		Total				% Change				Residential				Non- Residential				Total
Revenues		$	681,279		(1)	4.4%		$	22,811		(2)	(5.4%)		$	704,090			4.1%		Revenues		$	652,278			$	24,109			$	676,387
Expenses		$	216,943			3.1%		$	6,531			5.0%		$	223,474			3.1%		Expenses		$	210,513			$	6,222			$	216,735
NOI		$	464,336			5.1%		$	16,280			(9.0%)		$	480,616			4.6%		NOI		$	441,765			$	17,887			$	459,652
Average Rental Rate		$	3,048			5.0%														Average Rental Rate		$	2,904
Physical Occupancy			96.0	%		(0.4%)														Physical Occupancy			96.4	%
Turnover			13.8	%		(0.2%)														Turnover			14.0	%

Third Quarter 2023 vs. Second Quarter 2023
Same Store Results/Statistics Including 78,368 Same Store Apartment Units
($ in thousands except for Average Rental Rate)
Third Quarter 2023																				Second Quarter 2023
		Residential				% Change		Non- Residential				% Change		Total				% Change				Residential				Non- Residential				Total
Revenues		$	689,144		(1)	1.0%		$	23,976		(2)	(9.3%)		$	713,120			0.7%		Revenues		$	682,035			$	26,440			$	708,475
Expenses		$	219,491			2.1%		$	6,907			(6.2%)		$	226,398			1.9%		Expenses		$	214,894			$	7,365			$	222,259
NOI		$	469,653			0.5%		$	17,069			(10.5%)		$	486,722			0.1%		NOI		$	467,141			$	19,075			$	486,216
Average Rental Rate		$	3,057			1.0%														Average Rental Rate		$	3,027
Physical Occupancy			96.0	%		0.1%														Physical Occupancy			95.9	%
Turnover			13.8	%		2.2%														Turnover			11.6	%

September YTD 2023 vs. September YTD 2022
Same Store Results/Statistics Including 76,789 Same Store Apartment Units
($ in thousands except for Average Rental Rate)
September YTD 2023																				September YTD 2022
		Residential				% Change		Non- Residential				% Change		Total				% Change				Residential				Non- Residential				Total
Revenues		$	1,997,058		(1)	6.3%		$	72,798		(2)	2.8%		$	2,069,856			6.2%		Revenues		$	1,878,918			$	70,830			$	1,949,748
Expenses		$	644,494			5.2%		$	20,113			9.4%		$	664,607			5.3%		Expenses		$	612,892			$	18,389			$	631,281
NOI		$	1,352,564			6.8%		$	52,685			0.5%		$	1,405,249			6.6%		NOI		$	1,266,026			$	52,441			$	1,318,467
Average Rental Rate		$	3,015			7.0%														Average Rental Rate		$	2,819
Physical Occupancy			95.9	%		(0.6%)														Physical Occupancy			96.5	%
Turnover			34.3	%		0.2%														Turnover			34.1	%

(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)		Includes the negative impact from the non-cash write-off of approximately $1.5 million in straight-line receivables during the third quarter of 2023 due to the recent bankruptcy of Rite Aid.

Equity Residential

Same Store Residential Revenues – GAAP to Cash Basis (1)
($ in thousands)
	Third Quarter 2023 vs. Third Quarter 2022								Third Quarter 2023 vs. Second Quarter 2023								Sept. YTD 2023 vs. Sept YTD 2022
	77,698 Same Store Apartment Units								78,368 Same Store Apartment Units								76,789 Same Store Apartment Units
	Q3 2023				Q3 2022				Q3 2023				Q2 2023				Sept. YTD 2023				Sept. YTD 2022
Same Store Residential Revenues (GAAP Basis)	$	681,279			$	652,278			$	689,144			$	682,035			$	1,997,058			$	1,878,918
Leasing Concessions amortized		3,743				1,633				4,106				3,233				8,378				7,245
Leasing Concessions granted (2)		(5,190	)			(641	)			(5,433	)			(4,069	)			(12,821	)			(3,443	)
Same Store Residential Revenues with Leasing   Concessions on a cash basis	$	679,832			$	653,270			$	687,817			$	681,199			$	1,992,615			$	1,882,720
% change - GAAP revenue		4.4	%							1.0	%							6.3	%
% change - cash revenue		4.1	%							1.0	%							5.8	%

(1)		See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.
(2)		Concession usage is primarily concentrated in San Francisco and Seattle and is expected to continue through the remainder of 2023.

Same Store Net Operating Income By Quarter
Including 76,789 Same Store Apartment Units
($ in thousands)
		Q3 2023				Q2 2023				Q1 2023				Q4 2022				Q3 2022
Same store revenues		$	697,066			$	692,267			$	680,523			$	674,851			$	669,971
Same store expenses			221,035				217,113				226,459				210,495				214,192
Same store NOI   (includes Residential and Non-Residential)		$	476,031			$	475,154			$	454,064			$	464,356			$	455,779

Equity Residential

Same Store Resident/Tenant Accounts Receivable Balances
Including 76,789 Same Store Apartment Units
($ in thousands)
		Residential								Non-Residential
Balance Sheet (Other assets):		September 30, 2023				June 30, 2023				September 30, 2023				June 30, 2023
Resident/tenant accounts receivable balances		$	24,846			$	26,626			$	2,714			$	2,389
Allowance for doubtful accounts			(19,574	)			(22,335	)			(1,703	)			(1,383	)
Net receivable balances		$	5,272			$	4,291			$	1,011			$	1,006
Straight-line receivable balances		$	7,458		(1)	$	6,012			$	11,800		(2)	$	13,546

(1)		Total same store Residential Leasing Concessions granted in the third quarter of 2023 were approximately $5.1 million. The straight-line receivable balance of $7.5 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in the remainder of 2023 and the first three quarters of 2024.
(2)		During the third quarter of 2023, the Company recorded a non-cash write-off of approximately $1.5 million in straight-line receivables due to the recent bankruptcy of Rite Aid.

Same Store Residential Bad Debt
Including 76,789 Same Store Apartment Units
($ in thousands)
Income Statement (Rental income):		Q3 2023				Q2 2023				Q3 2022				September YTD 2023				September YTD 2022
Bad debts before governmental rental assistance		$	8,993			$	9,506			$	13,456			$	30,378			$	45,875
Governmental rental assistance received			(406	)			(660	)			(7,000	)			(2,245	)			(30,882	)
Bad Debt, Net		$	8,587			$	8,846			$	6,456			$	28,133			$	14,993
Bad Debt, Net as a % of Same Store Residential Revenues			1.3	%			1.3	%			1.0	%			1.4	%			0.8	%

Equity Residential Third Quarter 2023 vs. Third Quarter 2022 Same Store Residential Results/Statistics by Market

																						Increase (Decrease) from Prior Year's Quarter
Markets/Metro Areas		Apartment Units				Q3 2023 % of Actual NOI				Q3 2023 Average Rental Rate				Q3 2023 Weighted Average Physical Occupancy %				Q3 2023 Turnover				Revenues				Expenses				NOI				Average Rental Rate				Physical Occupancy				Turnover
Los Angeles			14,415				17.9	%		$	2,896				95.7	%			12.1	%			3.8	%	(1)		7.8	%			2.2	%			5.2	%			(1.2	%)			1.5	%
Orange County			4,028				5.5	%			2,826				96.7	%			10.9	%			5.7	%			7.7	%			5.1	%			6.1	%			(0.4	%)			0.2	%
San Diego			2,878				4.2	%			3,063				95.3	%			12.5	%			5.8	%			3.1	%			6.7	%			7.3	%			(1.4	%)			1.3	%
Subtotal – Southern California			21,321				27.6	%			2,905				95.9	%			12.0	%			4.5	%			7.2	%			3.4	%			5.6	%			(1.0	%)			1.3	%
Washington, D.C.			14,716				16.5	%			2,643				96.8	%			14.4	%			5.7	%			(1.7	%)			9.6	%			5.8	%			(0.1	%)			0.2	%
San Francisco			11,368				16.3	%			3,308				95.5	%			13.2	%			2.7	%	(1)		2.3	%			2.8	%			3.0	%			(0.4	%)			(0.1	%)
New York			8,536				14.1	%			4,531				96.5	%			12.7	%			6.7	%			3.6	%			9.1	%			7.1	%			(0.4	%)			(2.1	%)
Seattle			9,362				10.4	%			2,571				95.2	%			14.4	%			0.2	%			6.4	%			(2.3	%)			0.5	%			(0.2	%)			(1.5	%)
Boston			6,700				10.3	%			3,452				96.0	%			16.1	%			5.8	%			(0.4	%)			8.5	%			5.8	%			0.1	%			(1.6	%)
Denver			2,498				2.6	%			2,416				96.5	%			18.5	%			3.4	%			4.5	%			2.9	%			3.3	%			0.1	%			(1.6	%)
Other Expansion Markets			3,197				2.2	%			1,994				94.6	%			18.0	%			6.7	%			(0.3	%)			12.7	%			7.5	%			(1.0	%)			1.1	%
Total			77,698				100.0	%		$	3,048				96.0	%			13.8	%			4.4	%			3.1	%			5.1	%			5.0	%			(0.4	%)			(0.2	%)

(1)

Excluding Bad Debt, Net, which includes the positive impact of governmental rental assistance in the third quarter of 2022, same store revenue growth would have been 4.6% and 3.5% for Los Angeles and San Francisco, respectively.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.4% of total revenues for the nine months ended September 30, 2023.

Equity Residential Third Quarter 2023 vs. Second Quarter 2023 Same Store Residential Results/Statistics by Market

																						Increase (Decrease) from Prior Quarter
Markets/Metro Areas		Apartment Units				Q3 2023 % of Actual NOI				Q3 2023 Average Rental Rate				Q3 2023 Weighted Average Physical Occupancy %				Q3 2023 Turnover				Revenues				Expenses				NOI				Average Rental Rate				Physical Occupancy				Turnover
Los Angeles			14,415				17.7	%		$	2,896				95.7	%			12.1	%			2.0	%			2.9	%			1.6	%			1.2	%			0.7	%			0.9	%
Orange County			4,028				5.5	%			2,826				96.7	%			10.9	%			2.2	%			1.8	%			2.3	%			1.4	%			0.8	%			0.5	%
San Diego			2,878				4.1	%			3,063				95.3	%			12.5	%			1.7	%			1.0	%			1.9	%			2.2	%			(0.5	%)			2.6	%
Subtotal – Southern California			21,321				27.3	%			2,905				95.9	%			12.0	%			2.0	%			2.5	%			1.8	%			1.4	%			0.6	%			1.1	%
Washington, D.C.			14,716				16.4	%			2,643				96.8	%			14.4	%			2.1	%			2.5	%			1.9	%			2.2	%			0.0	%			3.8	%
San Francisco			11,568				16.2	%			3,303				95.5	%			13.2	%			0.5	%			2.7	%			(0.4	%)			0.6	%			0.0	%			2.3	%
New York			8,536				13.9	%			4,531				96.5	%			12.7	%			0.4	%			1.2	%			(0.1	%)			0.9	%			(0.6	%)			2.6	%
Seattle			9,362				10.3	%			2,571				95.2	%			14.4	%			(0.7	%)			3.8	%			(2.5	%)			(0.7	%)			0.1	%			0.0	%
Boston			7,170				11.1	%			3,525				96.1	%			16.0	%			0.9	%			1.5	%			0.7	%			1.4	%			(0.4	%)			4.4	%
Denver			2,498				2.6	%			2,416				96.5	%			18.5	%			0.2	%			7.8	%			(2.8	%)			(0.1	%)			0.3	%			1.3	%
Other Expansion Markets			3,197				2.2	%			1,994				94.6	%			18.0	%			0.0	%			(4.5	%)			3.6	%			0.2	%			(0.3	%)			3.4	%
Total			78,368				100.0	%		$	3,057				96.0	%			13.8	%			1.0	%			2.1	%			0.5	%			1.0	%			0.1	%			2.2	%

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.4% of total revenues for the nine months ended September 30, 2023.

Equity Residential September YTD 2023 vs. September YTD 2022 Same Store Residential Results/Statistics by Market

																						Increase (Decrease) from Prior Year
Markets/Metro Areas		Apartment Units				Sept. YTD 23 % of Actual NOI				Sept. YTD 23 Average Rental Rate				Sept. YTD 23 Weighted Average Physical Occupancy %				Sept. YTD 23 Turnover				Revenues				Expenses				NOI				Average Rental Rate				Physical Occupancy				Turnover
Los Angeles			14,415				17.9	%		$	2,844				95.4	%			33.3	%			3.2	%	(1)		9.0	%			0.7	%			4.8	%			(1.5	%)			5.0	%
Orange County			4,028				5.6	%			2,777				96.3	%			28.7	%			6.2	%			9.5	%			5.3	%			7.2	%			(0.8	%)			2.9	%
San Diego			2,706				3.9	%			2,965				95.5	%			31.1	%			6.8	%			6.4	%			6.9	%			8.3	%			(1.5	%)			1.8	%
Subtotal – Southern California			21,149				27.4	%			2,847				95.6	%			32.1	%			4.2	%			8.8	%			2.5	%			5.7	%			(1.4	%)			4.2	%
San Francisco			11,368				16.5	%			3,280				95.6	%			33.6	%			4.1	%			5.4	%			3.5	%			4.9	%			(0.7	%)			1.5	%
Washington, D.C.			14,400				16.1	%			2,581				96.7	%			32.3	%			6.2	%			2.0	%			8.4	%			6.3	%			(0.1	%)			(1.6	%)
New York			8,536				14.3	%			4,483				96.8	%			30.3	%			12.8	%			3.6	%			20.6	%			13.1	%			(0.2	%)			(4.6	%)
Seattle			9,362				10.9	%			2,581				95.1	%			39.8	%			4.2	%			4.2	%			4.2	%			4.3	%			(0.1	%)			(1.9	%)
Boston			6,700				10.2	%			3,400				96.0	%			35.3	%			7.9	%			3.4	%			9.8	%			8.1	%			(0.2	%)			(2.1	%)
Denver			2,498				2.7	%			2,406				96.3	%			46.7	%			5.6	%			9.4	%			4.1	%			5.5	%			(0.1	%)			(1.7	%)
Other Expansion Markets			2,776				1.9	%			1,989				94.6	%			44.6	%			5.4	%			10.7	%			1.2	%			6.9	%			(1.6	%)			1.9	%
Total			76,789				100.0	%		$	3,015				95.9	%			34.3	%			6.3	%			5.2	%			6.8	%			7.0	%			(0.6	%)			0.2	%

(1)

Excluding Bad Debt, Net, which includes the positive impact of governmental rental assistance in the nine months ended September 30, 2022, same store revenue growth would have been 5.6%.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.4% of total revenues for the nine months ended September 30, 2023.

Equity Residential

Same Store Residential Net Effective Lease Pricing Statistics
For 76,789 Same Store Apartment Units
		New Lease Change (1)								Renewal Rate Achieved (1)								Blended Rate (1)
Markets/Metro Areas		Q3 2023				Q2 2023				Q3 2023				Q2 2023				Q3 2023				Q2 2023
Southern California			2.0	%			3.5	%			6.5	%			7.0	%			4.2	%			5.4	%
San Francisco			(3.8	%)			1.4	%			4.4	%			6.0	%			0.0	%			3.8	%
Washington, D.C.			4.3	%			4.8	%			6.7	%			6.5	%			5.5	%			5.7	%
New York			1.4	%			4.2	%			5.3	%			5.1	%			3.7	%			4.7	%
Seattle			(4.4	%)			(3.8	%)			2.5	%			4.5	%			(0.9	%)			0.4	%
Boston			3.7	%			4.4	%			6.1	%			6.1	%			5.0	%			5.3	%
Denver			0.1	%			0.9	%			5.3	%			5.0	%			2.4	%			2.6	%
Other Expansion Markets			(8.5	%)			(4.9	%)			3.4	%			4.5	%			(3.8	%)			(0.8	%)
Total			0.5	%	(2)		2.3	%			5.5	%			5.9	%			3.1	%			4.3	%

(1)		See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions. See page 3 for October 2023 preliminary data.
(2)		Excluding the impact of San Francisco and Seattle, New Lease Change would have been 2.1% for the third quarter of 2023.

Equity Residential

Third Quarter 2023 vs. Third Quarter 2022
Total Same Store Operating Expenses Including 77,698 Same Store Apartment Units
($ in thousands)
		Q3 2023				Q3 2022				$ Change (1)				% Change				% of Q3 2023 Operating Expenses
Real estate taxes		$	90,840			$	89,113			$	1,727				1.9	%			40.7	%
On-site payroll			44,288				41,613				2,675				6.4	%			19.8	%
Utilities			34,261				35,427				(1,166	)			(3.3	%)			15.3	%
Repairs and maintenance			31,093				29,239				1,854				6.3	%			13.9	%
Insurance			8,406				7,432				974				13.1	%			3.8	%
Leasing and advertising			2,713				2,991				(278	)			(9.3	%)			1.2	%
Other on-site operating expenses			11,873				10,920				953				8.7	%			5.3	%
Total Same Store Operating Expenses (2)   (includes Residential and Non-Residential)		$	223,474			$	216,735			$	6,739				3.1	%			100.0	%

September YTD 2023 vs. September YTD 2022
Total Same Store Operating Expenses Including 76,789 Same Store Apartment Units
($ in thousands)
		YTD 2023				YTD 2022				$ Change (1)				% Change				% of YTD 2023 Operating Expenses
Real estate taxes		$	270,055			$	264,117			$	5,938				2.2	%			40.6	%
On-site payroll			128,291				120,976				7,315				6.0	%			19.3	%
Utilities			103,709				100,418				3,291				3.3	%			15.6	%
Repairs and maintenance			91,709				81,926				9,783				11.9	%			13.8	%
Insurance			25,149				22,043				3,106				14.1	%			3.8	%
Leasing and advertising			7,652				7,874				(222	)			(2.8	%)			1.2	%
Other on-site operating expenses			38,042				33,927				4,115				12.1	%			5.7	%
Total Same Store Operating Expenses (2)   (includes Residential and Non-Residential)		$	664,607			$	631,281			$	33,326				5.3	%			100.0	%

(1)		The quarter-over-quarter and year-over-year changes were primarily driven by the following factors:
		Real estate taxes – Increase due to modest escalation in rates and assessed values.
		On-site payroll – Increase due primarily to fewer staffing vacancies compared to the same periods of 2022 and elevated employee benefit costs, partially offset by the impact of innovation initiatives.
		Utilities – Quarter-over-quarter decrease primarily driven by lower commodity prices for gas and electric. Year-over-year increase primarily driven by higher commodity prices for gas earlier in the year and higher water, sewer and trash expense.
		Repairs and maintenance – Quarter-over-quarter increase primarily driven by continued wage pressure, particularly due to higher minimum wage on contracted services. Year-over-year increase was also impacted by increased outsourcing due to higher internal staffing utilization to address issues from California rain storms that occurred earlier this year.
		Insurance – Increase due to higher premiums on property insurance renewal due to challenging conditions in the insurance market.
		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 September 30, 2023
($ in thousands)
		Debt Balances (1)				% of Total				Weighted Average Rates (1)				Weighted Average Maturities (years)
Secured		$	1,634,726				21.9	%			3.64	%			8.1
Unsecured			5,844,531				78.1	%			3.60	%			8.3
Total		$	7,479,257				100.0	%			3.61	%			8.3
Fixed Rate Debt:
Secured – Conventional		$	1,397,970				18.7	%			3.52	%			7.7
Unsecured – Public			5,346,895				71.5	%			3.52	%			9.1
Fixed Rate Debt			6,744,865				90.2	%			3.52	%			8.8
Floating Rate Debt:
Secured – Conventional			—				—				7.18	%			—
Secured – Tax Exempt			236,756				3.2	%			3.49	%			10.7
Unsecured – Revolving Credit Facility			—				—				—				4.1
Unsecured – Commercial Paper Program (2)			497,636				6.6	%			5.36	%			—
Floating Rate Debt			734,392				9.8	%			4.75	%			3.6
Total		$	7,479,257				100.0	%			3.61	%			8.3

(1)		See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
(2)		At September 30, 2023, the weighted average maturity of commercial paper outstanding was 31 days. The weighted average amount outstanding for the nine months ended September 30, 2023 was approximately $236.4 million.

Note: The Company capitalized interest of approximately $9.6 million and $4.2 million during the nine months ended September 30, 2023 and 2022, respectively. The Company capitalized interest of approximately $2.6 million and $1.9 million during the quarters ended September 30, 2023 and 2022, respectively.

Equity Residential

Debt Maturity Schedule as of September 30, 2023
($ 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)
2023		$	—			$	502,805		(2)	$	502,805				6.7	%		N/A					5.61	%
2024			—				6,200				6,200				0.1	%		N/A					4.01	%
2025			450,000				8,100				458,100				6.1	%			3.38	%			3.38	%
2026			592,025				9,000				601,025				7.9	%			3.58	%			3.58	%
2027			400,000				9,800				409,800				5.4	%			3.25	%			3.26	%
2028			900,000				10,700				910,700				12.0	%			3.79	%			3.79	%
2029			888,120				11,500				899,620				11.9	%			3.30	%			3.31	%
2030			1,148,462				12,700				1,161,162				15.4	%			2.53	%			2.54	%
2031			528,500				39,800				568,300				7.5	%			1.94	%			2.08	%
2032			—				28,000				28,000				0.4	%		N/A					3.73	%
2033+			1,900,850				110,900				2,011,750				26.6	%			4.63	%			4.50	%
Subtotal			6,807,957				749,505				7,557,462				100.0	%			3.53	%			3.65	%
Deferred Financing Costs and Unamortized (Discount)			(63,092	)			(15,113	)			(78,205	)		N/A				N/A				N/A
Total		$	6,744,865			$	734,392			$	7,479,257				100.0	%			3.53	%			3.65	%

(1)		See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
(2)		Includes $500.0 million in principal outstanding on the Company's Commercial Paper Program.

Equity Residential

Selected Unsecured Public Debt Covenants
		September 30,		June 30,
		2023		2023
Debt to Adjusted Total Assets (not to exceed 60%)		26.9%		26.9%
Secured Debt to Adjusted Total Assets (not to exceed 40%)		6.7%		7.7%
Consolidated Income Available for Debt Service to   Maximum Annual Service Charges   (must be at least 1.5 to 1)		6.08		6.21
Total Unencumbered Assets to Unsecured Debt   (must be at least 125%)		502.3%		518.6%

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
		September 30,		June 30,
		2023		2023
Total debt to Normalized EBITDAre		4.28x		4.30x
Net debt to Normalized EBITDAre		4.24x		4.27x
Unencumbered NOI as a % of total NOI		89.8%		88.5%

Note: See Normalized EBITDAre Reconciliations for detail.

Equity Residential

Capital Structure as of September 30, 2023
(Amounts in thousands except for share/unit and per share amounts)
Secured Debt										$	1,634,726				21.9	%
Unsecured Debt											5,844,531				78.1	%
Total Debt											7,479,257				100.0	%			24.5	%
Common Shares (includes Restricted Shares)			379,723,838				97.0	%
Units (includes OP Units and Restricted Units)			11,733,485				3.0	%
Total Shares and Units			391,457,323				100.0	%
Common Share Price at September 30, 2023		$	58.71
											22,982,459				99.8	%
Perpetual Preferred Equity (see below)											37,280				0.2	%
Total Equity											23,019,739				100.0	%			75.5	%
Total Market Capitalization										$	30,498,996								100.0	%

Perpetual Preferred Equity as of September 30, 2023

(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

		Sept. YTD 2023				Sept. YTD 2022				Q3 2023				Q3 2022
Weighted Average Amounts Outstanding for Net Income Purposes:
Common Shares - basic			378,613,604				375,710,361				378,852,510				375,849,762
Shares issuable from assumed conversion/vesting of:
- OP Units			11,377,365				11,892,922				11,234,877				11,895,558
- long-term compensation shares/units			1,144,517				1,784,035				1,263,254				1,554,258
- ATM forward sales			—				6,276				—				—
Total Common Shares and Units - diluted			391,135,486				389,393,594				391,350,641				389,299,578
Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes:
Common Shares - basic			378,613,604				375,710,361				378,852,510				375,849,762
OP Units - basic			11,377,365				11,892,922				11,234,877				11,895,558
Total Common Shares and OP Units - basic			389,990,969				387,603,283				390,087,387				387,745,320
Shares issuable from assumed conversion/vesting of:
- long-term compensation shares/units			1,144,517				1,784,035				1,263,254				1,554,258
- ATM forward sales			—				6,276				—				—
Total Common Shares and Units - diluted			391,135,486				389,393,594				391,350,641				389,299,578
Period Ending Amounts Outstanding:
Common Shares (includes Restricted Shares)			379,723,838				376,169,253
Units (includes OP Units and Restricted Units)			11,733,485				12,844,608
Total Shares and Units			391,457,323				389,013,861

Equity Residential Development and Lease-Up Projects as of September 30, 2023 (Amounts in thousands except for project and apartment unit amounts)

																								Estimated/Actual
Projects		Location		Ownership Percentage		No. of Apartment Units				Total Budgeted Capital Cost				Total Book Value to Date				Total Debt (1)				Percentage Completed		Start Date		Initial Occupancy		Completion Date		Stabilization Date		Percentage Leased / Occupied
CONSOLIDATED:
Projects Under Development:
Laguna Clara II		Santa Clara, CA		100%			225			$	152,621			$	61,411			$	—			39%		Q2 2022		Q4 2024		Q1 2025		Q4 2025		– / –
Projects Under Development - Consolidated							225				152,621				61,411				—
Projects Completed Not Stabilized:
Reverb (fka 9th and W) (2)		Washington, D.C.		92%			312				108,027				104,311				—			100%		Q3 2021		Q2 2023		Q2 2023		Q3 2024		67% / 61%
Projects Completed Not Stabilized - Consolidated							312				108,027				104,311				—
UNCONSOLIDATED:
Projects Under Development:
Alloy Sunnyside		Denver, CO		80%			209				66,004				58,196				22,961			88%		Q3 2021		Q2 2024		Q2 2024		Q1 2025		– / –
Alexan Harrison		Harrison, NY		62%			450				198,664				159,127				64,740			81%		Q3 2021		Q1 2024		Q4 2024		Q2 2026		– / –
Solana Beeler Park		Denver, CO		90%			270				81,206				49,879				16,902			55%		Q4 2021		Q2 2024		Q3 2024		Q1 2025		– / –
Remy (Toll)		Frisco, TX		75%			357				96,937				68,775				23,035			69%		Q1 2022		Q1 2024		Q4 2024		Q3 2025		– / –
Settler (Toll)		Fort Worth, TX		75%			362				81,775				48,552				11,468			59%		Q2 2022		Q2 2024		Q3 2024		Q3 2025		– / –
Lyle (Toll) (2)		Dallas, TX		75%			334				86,332				40,017				14,059			50%		Q3 2022		Q2 2024		Q3 2024		Q1 2026		– / –
Projects Under Development - Unconsolidated							1,982				610,918				424,546				153,165
Total Development Projects - Consolidated							537				260,648				165,722				—
Total Development Projects - Unconsolidated							1,982				610,918				424,546				153,165
Total Development Projects							2,519			$	871,566			$	590,268			$	153,165

NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS	Total Budgeted Capital Cost				Q3 2023 NOI
Projects Under Development - Consolidated	$	152,621			$	—
Projects Completed Not Stabilized - Consolidated		108,027				425
Projects Under Development - Unconsolidated		610,918				(17	)
	$	871,566			$	408

(1)		All non-wholly owned projects are being partially funded with project-specific construction loans. None of these loans are recourse to the Company. The Company paid off the remaining $67.9 million of the third party construction loan on Reverb in the third quarter of 2023.
(2)		The land parcels under these projects are subject to long-term ground leases.

Equity Residential Capital Expenditures to Real Estate For the Nine Months Ended September 30, 2023 (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			76,789				3,894				80,683
Building Improvements		$	90,612			$	8,133		(2)	$	98,745			$	1,180
Renovation Expenditures			58,194		(1)		18,356		(2)		76,550				758
Replacements			53,401				1,067				54,468				695
Capital Expenditures to Real Estate (3)		$	202,207			$	27,556			$	229,763			$	2,633

(1)		Renovation Expenditures on 2,031 same store apartment units for the nine months ended September 30, 2023 approximated $28,653 per apartment unit renovated.
(2)		Includes expenditures for two properties that have been removed from same store while undergoing major renovations requiring a significant number of apartment units to be vacated to accommodate the extensive planned improvements. The renovations are expected to continue through the second quarter of 2024 at both properties.
(3)		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								2023												2022
		September 30, 2023				June 30, 2023				Q3				Q2				Q1				Q4				Q3
Net income		$	711,573			$	865,452			$	181,286			$	144,862			$	220,071			$	165,354			$	335,165
Interest expense incurred, net			266,709				270,230				68,891				65,590				66,401				65,827				72,412
Amortization of deferred financing costs			9,331				8,524				3,027				2,017				1,979				2,308				2,220
Amortization of above/below market lease intangibles			4,464				4,464				1,116				1,116				1,116				1,116				1,116
Depreciation			876,193				865,586				224,736				221,355				215,830				214,272				214,129
Income and other tax expense (benefit)			1,067				961				258				336				298				175				152
EBITDA			1,869,337				2,015,217				479,314				435,276				505,695				449,052				625,194
Net (gain) loss on sales of real estate properties			(127,013	)			(296,652	)			(26,912	)			87				(100,209	)			21				(196,551	)
EBITDAre			1,742,324				1,718,565				452,402				435,363				405,486				449,073				428,643
Write-off of pursuit costs (other expenses)			4,223				4,258				746				661				1,332				1,484				781
(Income) loss from investments in unconsolidated entities - operations			5,422				5,207				1,242				1,223				1,382				1,575				1,027
Realized (gain) loss on investment securities (interest and other income)			1,714				3,315				(1,598	)			—				87				3,225				3
Unrealized (gain) loss on investment securities (interest and other income)			(4,461	)			—				(4,461	)			—				—				—				—
Insurance/litigation settlement or reserve income (interest and other income)			(1,067	)			(1,105	)			(62	)			(193	)			(800	)			(12	)			(100	)
Insurance/litigation/environmental settlement or reserve expense (other expenses)			12,361				9,257				3,104				3,513				4,999				745				—
Advocacy contributions (other expenses)			527				1,097				150				320				7				50				720
Data transformation project (other expenses)			4,900				4,605				295				1,405				2,080				1,120				—
Real estate tax transaction adjustment (real estate taxes)			(18,072	)			(18,072	)			—				—				—				(18,072	)			—
Other			449				1,845				1				6				6				436				1,397
Normalized EBITDAre		$	1,748,320			$	1,728,972			$	451,819			$	442,298			$	414,579			$	439,624			$	432,471
Balance Sheet Items:		September 30, 2023				June 30, 2023
Total debt		$	7,479,257			$	7,442,916
Cash and cash equivalents			(39,250	)			(35,701	)
Mortgage principal reserves/sinking funds			(30,234	)			(28,802	)
Net debt		$	7,409,773			$	7,378,413

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)

		Nine Months Ended September 30,												Quarter Ended September 30,
		2023				2022				Variance				2023				2022				Variance
Impairment – non-operating real estate assets		$	—			$	—			$	—			$	—			$	—			$	—
Write-off of pursuit costs (other expenses)			2,739				3,296				(557	)			746				781				(35	)
Write-off of unamortized deferred financing costs (interest expense)			1,143				369				774				1,096				277				819
Write-off of unamortized (premiums)/discounts/OCI (interest expense)			—				3,947				(3,947	)			—				3,570				(3,570	)
Debt extinguishment and preferred share redemption (gains) losses			1,143				4,316				(3,173	)			1,096				3,847				(2,751	)
(Income) loss from investments in unconsolidated entities ─ non-operating assets			1,237				887				350				293				153				140
Realized (gain) loss on investment securities (interest and other income)			(1,511	)			(2,061	)			550				(1,598	)			3				(1,601	)
Unrealized (gain) loss on investment securities (interest and other income)			(4,461	)			—				(4,461	)			(4,461	)			—				(4,461	)
Non-operating asset (gains) losses			(4,735	)			(1,174	)			(3,561	)			(5,766	)			156				(5,922	)
Insurance/litigation settlement or reserve income (interest and other income)			(1,055	)			(1,638	)			583				(62	)			(100	)			38
Insurance/litigation/environmental settlement or reserve expense (other expenses)			11,616				750				10,866				3,104				—				3,104
Advocacy contributions (other expenses)			477				1,462				(985	)			150				720				(570	)
Data transformation project (other expenses)			3,780				—				3,780				295				—				295
Other			13				1,258				(1,245	)			1				1,397				(1,396	)
Other miscellaneous items			14,831				1,832				12,999				3,488				2,017				1,471
Adjustments from FFO to Normalized FFO		$	13,978			$	8,270			$	5,708			$	(436	)		$	6,801			$	(7,237	)

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.

		Q4 2023		Revised Full Year 2023		Previous Full Year 2023
2023 Normalized FFO Guidance (per share diluted)
Expected Normalized FFO Per Share		$0.99 to $1.01		$3.77 to $3.79		$3.77 to $3.83
2023 Same Store Assumptions (includes Residential and Non-Residential)
Physical Occupancy				95.9%		96.0%
Revenue change				5.5%		5.5% to 6.25%
Expense change				4.25%		4.0% to 4.5%
NOI change (1)				6.2%		6.3% to 7.0%
2023 Transaction Assumptions
Consolidated rental acquisitions				$366.3M		$300.0M
Consolidated rental dispositions				$380.0M		$300.0M
Transaction Accretion (Dilution)				–		–
2023 Debt Assumptions
Weighted average debt outstanding				$7.45B to $7.5B		$7.35B to $7.55B
Interest expense, net (on a Normalized FFO basis)				$267.5M to $271.5M		$265.5M to $271.5M
Capitalized interest				$12.0M to $13.0M		$11.0M to $14.0M
2023 Capital Expenditures to Real Estate Assumptions for Same Store Properties (2)
Capital Expenditures to Real Estate for Same Store Properties				$276.4M		$255.0M
Capital Expenditures to Real Estate per Same Store Apartment Unit				$3,600		$3,315
2023 Other Guidance Assumptions
Property management expense				$118.0M to $119.0M		$116.5M to $119.5M
General and administrative expense				$60.0M to $61.0M		$59.5M to $63.5M
Debt offerings				$550.0M		$530.0M
Weighted average Common Shares and Units - Diluted				391.2M		391.3M

(1)		Approximately 20 basis point change in NOI percentage = $0.01 per share change in EPS/FFO per share/Normalized FFO per share.
(2)		During 2023, the Company expects to spend approximately $75.0 million for apartment unit Renovation Expenditures on approximately 2,500 same store apartment units at an average cost of approximately $30,000 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 – Change 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 October 26, 2027. The interest rate on advances under the facility will generally be SOFR plus a spread (currently 0.725%), 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:

		September 30, 2023
Unsecured revolving credit facility commitment		$	2,500,000
Commercial paper balance outstanding			(500,005	)
Unsecured revolving credit facility balance outstanding			—
Other restricted amounts			(3,415	)
Unsecured revolving credit facility availability		$	1,996,580

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 $150-$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):

		Nine Months Ended September 30, 2023				Quarter Ended September 30, 2023
Net Gain (Loss) on Sales of Real Estate Properties		$	127,034			$	26,912
Accumulated Depreciation Gain			(55,757	)			(19,271	)
Economic Gain (Loss)		$	71,277			$	7,641

Forecasted Embedded Growth – The positive or negative contribution to growth implied by annualizing total lease income anticipated for the last month of the current year (without regard to vacancy) compared to anticipated actual full year lease income for the current year (without regard to vacancy) and excluding the impact of Leasing Concessions and other income. This metric is a helpful data point in that it captures the impact of leases in existence at the end of the current year and their impact on rental income for the following year.

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" or "NFFO") – Normalized FFO begins with FFO and excludes:

• the impact of any expenses relating to non-operating real estate 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 Sept.				Actual Sept.				Actual				Actual				Expected				Expected
		YTD 2023				YTD 2022				Q3 2023				Q3 2022				Q4 2023				2023
		Per Share				Per Share				Per Share				Per Share				Per Share				Per Share
EPS – Diluted		$	1.38			$	1.63			$	0.45			$	0.86			$0.82 to $0.84				$2.20 to $2.22
Depreciation expense			1.68				1.71				0.57				0.55				0.58				2.26
Net (gain) loss on sales			(0.32	)			(0.78	)			(0.06	)			(0.51	)			(0.40	)			(0.72	)
Impairment – operating real estate assets		—				—				—				—					—				—
FFO per share – Diluted			2.74				2.56				0.96				0.90			1.00 to 1.02				3.74 to 3.76
Impairment – non-operating real estate assets			—				—				—				—				—				—
Write-off of pursuit costs			0.01				0.01				—				—				—				0.01
Debt extinguishment and preferred share   redemption (gains) losses			—				0.01				—				0.01				—				—
Non-operating asset (gains) losses			(0.01	)			—				(0.01	)			—				(0.01	)			(0.02	)
Other miscellaneous items			0.04				—				0.01				0.01				—				0.04
Normalized FFO per share – Diluted		$	2.78			$	2.58			$	0.96			$	0.92			$0.99 to $1.01				$3.77 to $3.79

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):

		Nine Months Ended September 30,								Quarter Ended September 30,
		2023				2022				2023				2022
Operating income		$	768,084			$	873,683			$	252,035			$	414,011
Adjustments:
Property management			90,314				83,035				28,169				25,729
General and administrative			49,135				47,033				14,094				13,372
Depreciation			661,921				667,896				224,736				214,129
Net (gain) loss on sales of real estate   properties			(127,034	)			(304,346	)			(26,912	)			(196,551	)
Total NOI		$	1,442,420			$	1,367,301			$	492,122			$	470,690
Rental income:
Same store		$	2,069,856			$	1,949,748			$	704,090			$	676,387
Non-same store/other			76,608				85,729				19,977				18,712
Total rental income			2,146,464				2,035,477				724,067				695,099
Operating expenses:
Same store			664,607				631,281				223,474				216,735
Non-same store/other			39,437				36,895				8,471				7,674
Total operating expenses			704,044				668,176				231,945				224,409
NOI:
Same store			1,405,249				1,318,467				480,616				459,652
Non-same store/other			37,171				48,834				11,506				11,038
Total NOI		$	1,442,420			$	1,367,301			$	492,122			$	470,690

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 2022 and 2023, plus any properties in lease-up and not stabilized as of January 1, 2022.

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, 2022, 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 2023 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. Amounts for partially owned consolidated and unconsolidated properties are presented at 100% of the project.

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 September 30, 2023. 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 nine months ended September 30, 2023 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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The Equity Residential Registered of Benef Interest Stock at the time of publication of the news with a raise of +1,60 % to 55,33EUR on NYSE stock exchange (31. Oktober 2023, 21:00 Uhr).