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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-12252 (Equity Residential)

Commission File Number: 0-24920 (ERP Operating Limited Partnership)

EQUITY RESIDENTIAL

ERP OPERATING LIMITED PARTNERSHIP

(Exact name of registrant as specified in its charter)

 

Maryland (Equity Residential)

 

13-3675988 (Equity Residential)

Illinois (ERP Operating Limited Partnership)

 

36-3894853 (ERP Operating Limited Partnership)

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

 

 

Two North Riverside Plaza, Chicago, Illinois 60606

 

(312) 474-1300

(Address of principal executive offices) (Zip Code)

 

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Shares of Beneficial Interest,
$0.01 Par Value (Equity Residential)

 

EQR

 

New York Stock Exchange

7.57% Notes due August 15, 2026
(ERP Operating Limited Partnership)

 

N/A

 

New York Stock Exchange

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

Equity Residential Yes   No

ERP Operating Limited Partnership Yes   No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

 

Equity Residential Yes   No

ERP Operating Limited Partnership Yes   No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Equity Residential:

 

Large accelerated filer

 

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

l

ERP Operating Limited Partnership:

 

Large accelerated filer

 

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Equity Residential

ERP Operating Limited Partnership

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

Equity Residential Yes   No

ERP Operating Limited Partnership Yes   No

 

The number of EQR Common Shares of Beneficial Interest, $0.01 par value, outstanding on October 28, 2024 was 379,429,476.

 


EXPLANATORY NOTE

This report combines the reports on Form 10-Q for the quarterly period ended September 30, 2024 of Equity Residential and ERP Operating Limited Partnership. Unless stated otherwise or the context otherwise requires, references to “EQR” mean Equity Residential, a Maryland real estate investment trust (“REIT”), and references to “ERPOP” mean ERP Operating Limited Partnership, an Illinois limited partnership. References to the “Company,” “we,” “us” or “our” mean collectively EQR, ERPOP and those entities/subsidiaries owned or controlled by EQR and/or ERPOP. References to the “Operating Partnership” mean collectively ERPOP and those entities/subsidiaries owned or controlled by ERPOP. The following chart illustrates the Company’s and the Operating Partnership’s corporate structure:

 

img137407437_0.jpg

 

EQR is the general partner of, and as of September 30, 2024 owned an approximate 97.0% ownership interest in, ERPOP. The remaining 3.0% interest is owned by limited partners. As the sole general partner of ERPOP, EQR has exclusive control of ERPOP’s day-to-day management. Management operates the Company and the Operating Partnership as one business. The management of EQR consists of the same members as the management of ERPOP.

The Company is structured as an umbrella partnership REIT (“UPREIT”) and EQR contributes all net proceeds from its various equity offerings to ERPOP. In return for those contributions, EQR receives a number of OP Units (see definition below) in ERPOP equal to the number of Common Shares it has issued in the equity offering. The Company may acquire properties in transactions that include the issuance of OP Units as consideration for the acquired properties. Such transactions may, in certain circumstances, enable the sellers to defer in whole or in part, the recognition of taxable income or gain that might otherwise result from the sales. This is one of the reasons why the Company is structured in the manner shown above. Based on the terms of ERPOP’s partnership agreement, OP Units can be exchanged with Common Shares on a one-for-one basis because the Company maintains a one-for-one relationship between the OP Units of ERPOP issued to EQR and the outstanding Common Shares.

The Company believes that combining the reports on Form 10-Q of EQR and ERPOP into this single report provides the following benefits:

enhances investors’ understanding of the Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;

eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure applies to both the Company and the Operating Partnership; and

creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.

 


The Company believes it is important to understand the few differences between EQR and ERPOP in the context of how EQR and ERPOP operate as a consolidated company. All of the Company’s property ownership, development and related business operations are conducted through the Operating Partnership and EQR has no material assets or liabilities other than its investment in ERPOP. EQR’s primary function is acting as the general partner of ERPOP. EQR also issues equity from time to time, the net proceeds of which it is obligated to contribute to ERPOP. EQR does not have any indebtedness as all debt is incurred by the Operating Partnership. The Operating Partnership holds substantially all of the assets of the Company, including the Company’s ownership interests in its joint ventures. The Operating Partnership conducts the operations of the business and is structured as a partnership with no publicly traded equity. Except for the net proceeds from equity offerings by EQR (which are contributed to the capital of ERPOP in exchange for additional partnership interests in ERPOP (“OP Units”) (on a one-for-one Common Share per OP Unit basis) or additional preference units in ERPOP (on a one-for-one preferred share per preference unit basis)), the Operating Partnership generates all remaining capital required by the Company’s business. These sources include the Operating Partnership’s working capital, net cash provided by operating activities, borrowings under its revolving credit facility and/or commercial paper program, the issuance of secured and unsecured debt and partnership interests, and proceeds received from disposition of certain properties and joint venture interests.

Shareholders’ equity, partners’ capital and noncontrolling interests are the main areas of difference between the consolidated financial statements of the Company and those of the Operating Partnership. The limited partners of the Operating Partnership are accounted for as partners’ capital in the Operating Partnership’s financial statements and as noncontrolling interests in the Company’s financial statements. The noncontrolling interests in the Operating Partnership’s financial statements include the interests of unaffiliated partners in various consolidated partnerships. The noncontrolling interests in the Company’s financial statements include the same noncontrolling interests at the Operating Partnership level and limited partner OP Unit holders of the Operating Partnership. The differences between shareholders’ equity and partners’ capital result from differences in the equity issued at the Company and Operating Partnership levels.

To help investors understand the differences between the Company and the Operating Partnership, this report provides separate consolidated financial statements for the Company and the Operating Partnership; a single set of consolidated notes to such financial statements that includes separate discussions of each entity’s debt, noncontrolling interests and shareholders’ equity or partners’ capital, as applicable; and a combined Management’s Discussion and Analysis of Financial Condition and Results of Operations section that includes discrete information related to each entity.

This report also includes separate Part I, Item 4, Controls and Procedures, sections and separate Exhibits 31 and 32 certifications for each of the Company and the Operating Partnership in order to establish that the requisite certifications have been made and that the Company and the Operating Partnership are compliant with Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and 18 U.S.C. §1350.

In order to highlight the differences between the Company and the Operating Partnership, the separate sections in this report for the Company and the Operating Partnership specifically refer to the Company and the Operating Partnership. In the sections that combine disclosure of the Company and the Operating Partnership, this report refers to actions or holdings as being actions or holdings of the Company. Although the Operating Partnership is generally the entity that directly or indirectly enters into contracts and joint ventures and holds assets and debt, reference to the Company is appropriate because the Company is one business and the Company operates that business through the Operating Partnership.

As general partner with control of ERPOP, EQR consolidates ERPOP for financial reporting purposes, and EQR essentially has no assets or liabilities other than its investment in ERPOP. Therefore, the assets and liabilities of the Company and the Operating Partnership are the same on their respective financial statements. The separate discussions of the Company and the Operating Partnership in this report should be read in conjunction with each other to understand the results of the Company on a consolidated basis and how management operates the Company.

 

 


TABLE OF CONTENTS

 

 

PAGE

 

 

PART I.

 

 

 

Item 1. Financial Statements of Equity Residential:

 

 

 

Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023

2

 

 

Consolidated Statements of Operations and Comprehensive Income for the nine months and quarters ended September 30, 2024 and 2023

3

 

 

Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023

5

 

 

Consolidated Statements of Changes in Equity for the nine months and quarters ended September 30, 2024 and 2023

9

 

 

Financial Statements of ERP Operating Limited Partnership:

 

 

 

Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023

11

 

 

Consolidated Statements of Operations and Comprehensive Income for the nine months and quarters ended September 30, 2024 and 2023

12

 

 

Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023

14

 

 

Consolidated Statements of Changes in Capital for the nine months and quarters ended September 30, 2024 and 2023

18

 

 

Notes to Consolidated Financial Statements of Equity Residential and ERP Operating Limited Partnership

20

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

38

 

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk

48

 

 

Item 4. Controls and Procedures

48

 

 

PART II.

 

 

Item 1. Legal Proceedings

49

 

Item 1A. Risk Factors

49

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

49

 

Item 3. Defaults Upon Senior Securities

49

 

Item 4. Mine Safety Disclosures

49

 

Item 5. Other Information

49

 

 

Item 6. Exhibits

49

 

1


EQUITY RESIDENTIAL

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands except for share amounts)

(Unaudited)

 

 

 

September 30,

 

 

December 31,

 

 

 

2024

 

 

2023

 

ASSETS

 

 

 

 

 

 

Land

 

$

5,675,037

 

 

$

5,581,876

 

Depreciable property

 

 

24,148,043

 

 

 

22,938,426

 

Projects under development

 

 

222,055

 

 

 

78,036

 

Land held for development

 

 

65,113

 

 

 

114,300

 

Investment in real estate

 

 

30,110,248

 

 

 

28,712,638

 

Accumulated depreciation

 

 

(10,386,783

)

 

 

(9,810,337

)

Investment in real estate, net

 

 

19,723,465

 

 

 

18,902,301

 

Investments in unconsolidated entities

 

 

359,810

 

 

 

282,049

 

Cash and cash equivalents

 

 

28,610

 

 

 

50,743

 

Restricted deposits

 

 

97,949

 

 

 

89,252

 

Right-of-use assets

 

 

458,673

 

 

 

457,266

 

Other assets

 

 

257,314

 

 

 

252,953

 

Total assets

 

$

20,925,821

 

 

$

20,034,564

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Mortgage notes payable, net

 

$

1,633,414

 

 

$

1,632,902

 

Notes, net

 

 

5,945,670

 

 

 

5,348,417

 

Line of credit and commercial paper

 

 

786,561

 

 

 

409,131

 

Accounts payable and accrued expenses

 

 

165,787

 

 

 

87,377

 

Accrued interest payable

 

 

50,633

 

 

 

65,716

 

Lease liabilities

 

 

306,119

 

 

 

311,640

 

Other liabilities

 

 

294,543

 

 

 

272,596

 

Security deposits

 

 

74,350

 

 

 

69,178

 

Distributions payable

 

 

263,425

 

 

 

259,231

 

Total liabilities

 

 

9,520,502

 

 

 

8,456,188

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable Noncontrolling Interests – Operating Partnership

 

 

351,803

 

 

 

289,248

 

Equity:

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

Preferred Shares of beneficial interest, $0.01 par value;
   
100,000,000 shares authorized; 343,100 shares issued and
   outstanding as of September 30, 2024 and
745,600 shares issued
   and outstanding as of December 31, 2023

 

 

17,155

 

 

 

37,280

 

Common Shares of beneficial interest, $0.01 par value;
   
1,000,000,000 shares authorized; 379,354,738 shares issued
   and outstanding as of September 30, 2024 and
379,291,417
   shares issued and outstanding as of December 31, 2023

 

 

3,794

 

 

 

3,793

 

Paid in capital

 

 

9,584,539

 

 

 

9,601,866

 

Retained earnings

 

 

1,244,953

 

 

 

1,437,185

 

Accumulated other comprehensive income (loss)

 

 

3,534

 

 

 

5,704

 

Total shareholders’ equity

 

 

10,853,975

 

 

 

11,085,828

 

Noncontrolling Interests:

 

 

 

 

 

 

Operating Partnership

 

 

199,206

 

 

 

202,306

 

Partially Owned Properties

 

 

335

 

 

 

994

 

Total Noncontrolling Interests

 

 

199,541

 

 

 

203,300

 

Total equity

 

 

11,053,516

 

 

 

11,289,128

 

Total liabilities and equity

 

$

20,925,821

 

 

$

20,034,564

 

 

See accompanying notes

2


EQUITY RESIDENTIAL

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Amounts in thousands except per share data)

(Unaudited)

 

 

 

Nine Months Ended September 30,

 

 

Quarter Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

2,213,329

 

 

$

2,146,464

 

 

$

748,348

 

 

$

724,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

Property and maintenance

 

 

396,349

 

 

 

391,437

 

 

 

135,221

 

 

 

129,087

 

Real estate taxes and insurance

 

 

320,452

 

 

 

312,607

 

 

 

105,954

 

 

 

102,858

 

Property management

 

 

100,381

 

 

 

90,314

 

 

 

31,412

 

 

 

28,169

 

General and administrative

 

 

48,902

 

 

 

49,135

 

 

 

14,551

 

 

 

14,094

 

Depreciation

 

 

688,041

 

 

 

661,921

 

 

 

237,948

 

 

 

224,736

 

Total expenses

 

 

1,554,125

 

 

 

1,505,414

 

 

 

525,086

 

 

 

498,944

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain (loss) on sales of real estate properties

 

 

227,829

 

 

 

127,034

 

 

 

(165

)

 

 

26,912

 

Interest and other income

 

 

26,501

 

 

 

11,296

 

 

 

15,844

 

 

 

7,627

 

Other expenses

 

 

(59,094

)

 

 

(20,517

)

 

 

(13,971

)

 

 

(4,958

)

Interest:

 

 

 

 

 

 

 

 

 

 

 

 

Expense incurred, net

 

 

(205,762

)

 

 

(200,882

)

 

 

(72,722

)

 

 

(68,891

)

Amortization of deferred financing costs

 

 

(5,784

)

 

 

(7,023

)

 

 

(1,948

)

 

 

(3,027

)

Income before income and other taxes, income (loss) from
   investments in unconsolidated entities and net gain (loss)
   on sales of land parcels

 

 

642,894

 

 

 

550,958

 

 

 

150,300

 

 

 

182,786

 

Income and other tax (expense) benefit

 

 

(925

)

 

 

(892

)

 

 

(290

)

 

 

(258

)

Income (loss) from investments in unconsolidated entities

 

 

(4,865

)

 

 

(3,847

)

 

 

(1,493

)

 

 

(1,242

)

Net income

 

 

637,104

 

 

 

546,219

 

 

 

148,517

 

 

 

181,286

 

Net (income) loss attributable to Noncontrolling Interests:

 

 

 

 

 

 

 

 

 

 

 

 

Operating Partnership

 

 

(17,290

)

 

 

(17,174

)

 

 

(4,012

)

 

 

(5,561

)

Partially Owned Properties

 

 

(3,098

)

 

 

(5,299

)

 

 

(1,059

)

 

 

(3,217

)

Net income attributable to controlling interests

 

 

616,716

 

 

 

523,746

 

 

 

143,446

 

 

 

172,508

 

Preferred distributions

 

 

(1,258

)

 

 

(2,318

)

 

 

(356

)

 

 

(773

)

Premium on redemption of Preferred Shares

 

 

(1,444

)

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

614,014

 

 

$

521,428

 

 

$

143,090

 

 

$

171,735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – basic:

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

1.62

 

 

$

1.38

 

 

$

0.38

 

 

$

0.45

 

Weighted average Common Shares outstanding

 

 

378,718

 

 

 

378,614

 

 

 

378,756

 

 

 

378,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share – diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Common Shares

 

$

1.62

 

 

$

1.38

 

 

$

0.38

 

 

$

0.45

 

Weighted average Common Shares outstanding

 

 

390,688

 

 

 

391,135

 

 

 

391,026

 

 

 

391,351

 

 

See accompanying notes

3


EQUITY RESIDENTIAL

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Continued)

(Amounts in thousands except per share data)

(Unaudited)

 

 

Nine Months Ended September 30,

 

 

Quarter Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

637,104

 

 

$

546,219

 

 

$

148,517

 

 

$

181,286

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss) – derivative instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding gains (losses) arising during the period

 

 

(3,989

)

 

 

4,514

 

 

 

(3,989

)

 

 

460

 

Losses reclassified into earnings from other comprehensive
   income

 

 

1,819

 

 

 

3,132

 

 

 

609

 

 

 

931

 

Other comprehensive income (loss)

 

 

(2,170

)

 

 

7,646

 

 

 

(3,380

)

 

 

1,391

 

Comprehensive income

 

 

634,934

 

 

 

553,865

 

 

 

145,137

 

 

 

182,677

 

Comprehensive (income) attributable to Noncontrolling Interests

 

 

(20,330

)

 

 

(22,712

)

 

 

(4,980

)

 

 

(8,822

)

Comprehensive income attributable to controlling interests

 

$

614,604

 

 

$

531,153

 

 

$

140,157

 

 

$

173,855

 

See accompanying notes

4


EQUITY RESIDENTIAL

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

 

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

$

637,104

 

 

$

546,219

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation

 

 

688,041

 

 

 

661,921

 

Amortization of deferred financing costs

 

 

5,784

 

 

 

7,023

 

Amortization of discounts and premiums on debt

 

 

3,823

 

 

 

2,815

 

Amortization of deferred settlements on derivative instruments

 

 

1,811

 

 

 

3,123

 

Amortization of right-of-use assets

 

 

11,320

 

 

 

9,572

 

Write-off of pursuit costs

 

 

1,905

 

 

 

2,739

 

(Income) loss from investments in unconsolidated entities

 

 

4,865

 

 

 

3,847

 

Distributions from unconsolidated entities – return on capital

 

 

446

 

 

 

436

 

Net (gain) loss on sales of real estate properties

 

 

(227,829

)

 

 

(127,034

)

Realized (gain) loss on investment securities

 

 

1,316

 

 

 

(1,511

)

Unrealized (gain) loss on investment securities

 

 

(19,880

)

 

 

(4,461

)

Compensation paid with Company Common Shares

 

 

26,781

 

 

 

26,948

 

Changes in assets and liabilities:

 

 

 

 

 

 

(Increase) decrease in other assets

 

 

5,551

 

 

 

11,887

 

Increase (decrease) in accounts payable and accrued expenses

 

 

71,360

 

 

 

71,334

 

Increase (decrease) in accrued interest payable

 

 

(15,083

)

 

 

(18,791

)

Increase (decrease) in lease liabilities

 

 

(3,363

)

 

 

(1,077

)

Increase (decrease) in other liabilities

 

 

20,258

 

 

 

(7,024

)

Increase (decrease) in security deposits

 

 

5,172

 

 

 

558

 

Net cash provided by operating activities

 

 

1,219,382

 

 

 

1,188,524

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Investment in real estate – acquisitions

 

 

(1,320,592

)

 

 

(324,497

)

Investment in real estate – development/other

 

 

(90,718

)

 

 

(60,179

)

Capital expenditures to real estate

 

 

(230,107

)

 

 

(229,763

)

Non-real estate capital additions

 

 

(1,572

)

 

 

(1,457

)

Interest capitalized for real estate and unconsolidated entities under development

 

 

(10,697

)

 

 

(9,579

)

Proceeds from disposition of real estate, net

 

 

360,850

 

 

 

191,718

 

Investments in unconsolidated entities – acquisitions

 

 

(31,286

)

 

 

(989

)

Investments in unconsolidated entities – development/other

 

 

(48,360

)

 

 

(34,076

)

Distributions from unconsolidated entities – return of capital

 

 

1,409

 

 

 

15

 

Purchase of investment securities and other investments

 

 

 

 

 

(2,500

)

Proceeds from sale of investment securities

 

 

7,457

 

 

 

2,952

 

Net cash provided by (used for) investing activities

 

 

(1,363,616

)

 

 

(468,355

)

 

See accompanying notes

5


EQUITY RESIDENTIAL

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(Amounts in thousands)

(Unaudited)

 

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Debt financing costs

 

$

(5,307

)

 

$

(4,106

)

Mortgage notes payable, net:

 

 

 

 

 

 

Proceeds

 

 

 

 

 

572,896

 

Lump sum payoffs

 

 

 

 

 

(932,598

)

Scheduled principal repayments

 

 

(2,400

)

 

 

(554

)

Notes, net:

 

 

 

 

 

 

Proceeds

 

 

597,954

 

 

 

 

Line of credit and commercial paper:

 

 

 

 

 

 

Line of credit proceeds

 

 

198,000

 

 

 

 

Line of credit repayments

 

 

(198,000

)

 

 

 

Commercial paper proceeds

 

 

8,610,430

 

 

 

4,393,568

 

Commercial paper repayments

 

 

(8,233,000

)

 

 

(4,025,887

)

Proceeds from (payments on) settlement of derivative instruments

 

 

(3,989

)

 

 

25,169

 

Finance ground lease principal payments

 

 

(2,158

)

 

 

(1,995

)

Proceeds from Employee Share Purchase Plan (ESPP)

 

 

2,830

 

 

 

2,591

 

Proceeds from exercise of options

 

 

17,315

 

 

 

11,474

 

Common Shares repurchased and retired

 

 

(38,474

)

 

 

 

Redemption of Preferred Shares

 

 

(20,125

)

 

 

 

Premium on redemption of Preferred Shares

 

 

(1,444

)

 

 

 

Other financing activities, net

 

 

(52

)

 

 

(37

)

Acquisition of Noncontrolling Interests – Partially Owned Properties

 

 

 

 

 

(3,737

)

Contributions – Noncontrolling Interests – Partially Owned Properties

 

 

458

 

 

 

9

 

Contributions – Noncontrolling Interests – Operating Partnership

 

 

2

 

 

 

1

 

Distributions:

 

 

 

 

 

 

Common Shares

 

 

(762,990

)

 

 

(738,584

)

Preferred Shares

 

 

(2,031

)

 

 

(2,319

)

Noncontrolling Interests – Operating Partnership

 

 

(23,058

)

 

 

(22,969

)

Noncontrolling Interests – Partially Owned Properties

 

 

(3,163

)

 

 

(3,536

)

Net cash provided by (used for) financing activities

 

 

130,798

 

 

 

(730,614

)

Net increase (decrease) in cash and cash equivalents and restricted deposits

 

 

(13,436

)

 

 

(10,445

)

Cash and cash equivalents and restricted deposits, beginning of period

 

 

139,995

 

 

 

137,172

 

Cash and cash equivalents and restricted deposits, end of period

 

$

126,559

 

 

$

126,727

 

 

 

 

 

 

 

 

Cash and cash equivalents and restricted deposits, end of period

 

 

 

 

 

 

Cash and cash equivalents

 

$

28,610

 

 

$

39,250

 

Restricted deposits

 

 

97,949

 

 

 

87,477

 

Total cash and cash equivalents and restricted deposits, end of period

 

$

126,559

 

 

$

126,727

 

 

See accompanying notes

6


EQUITY RESIDENTIAL

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(Amounts in thousands)

(Unaudited)

 

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

SUPPLEMENTAL INFORMATION:

 

 

 

 

 

 

Cash paid for interest, net of amounts capitalized

 

$

197,587

 

 

$

206,080

 

Net cash paid (received) for income and other taxes

 

$

1,097

 

 

$

1,035

 

Real estate acquisitions/dispositions/other:

 

 

 

 

 

 

Mortgage loans assumed

 

$

 

 

$

42,256

 

Amortization of deferred financing costs:

 

 

 

 

 

 

Investment in real estate, net

 

$

 

 

$

(211

)

Other assets

 

$

2,089

 

 

$

2,089

 

Mortgage notes payable, net

 

$

786

 

 

$

2,265

 

Notes, net

 

$

2,909

 

 

$

2,880

 

Amortization of discounts and premiums on debt:

 

 

 

 

 

 

Mortgage notes payable, net

 

$

2,126

 

 

$

1,129

 

Notes, net

 

$

1,697

 

 

$

1,686

 

Amortization of deferred settlements on derivative instruments:

 

 

 

 

 

 

Other liabilities

 

$

(8

)

 

$

(9

)

Accumulated other comprehensive income

 

$

1,819

 

 

$

3,132

 

Write-off of pursuit costs:

 

 

 

 

 

 

Investment in real estate, net

 

$

401

 

 

$

421

 

Investments in unconsolidated entities

 

$

1,292

 

 

$

1,667

 

Other assets

 

$

212

 

 

$

651

 

(Income) loss from investments in unconsolidated entities:

 

 

 

 

 

 

Investments in unconsolidated entities

 

$

3,927

 

 

$

2,909

 

Other liabilities

 

$

938

 

 

$

938

 

Realized/unrealized (gain) loss on derivative instruments:

 

 

 

 

 

 

Other assets

 

$

 

 

$

(3,749

)

Other liabilities

 

$

3,989

 

 

$

(765

)

Accumulated other comprehensive income

 

$

(3,989

)

 

$

4,514

 

Investment in real estate – acquisitions:

 

 

 

 

 

 

Investment in real estate, net

 

$

(1,307,865

)

 

$

(324,497

)

Right-of-use assets

 

$

(12,727

)

 

$

 

Interest capitalized for real estate and unconsolidated entities under development:

 

 

 

 

 

 

Investment in real estate, net

 

$

(4,308

)

 

$

(3,468

)

Investments in unconsolidated entities

 

$

(6,389

)

 

$

(6,111

)

Investments in unconsolidated entities – development/other:

 

 

 

 

 

 

Investments in unconsolidated entities

 

$

(47,160

)

 

$

(32,667

)

Other liabilities

 

$

(1,200

)

 

$

(1,409

)

Debt financing costs:

 

 

 

 

 

 

Mortgage notes payable, net

 

$

 

 

$

(4,106

)

Notes, net

 

$

(5,307

)

 

$