Equity Residential · NYSE:EQR
Equity Residential — Q2 2024 Earnings Presentation
36 slides from Equity Residential's earnings presentation, Jul 30, 2024
Slide 1: Second Quarter 2024 Earnings Release & Supplemental Information
== Equity Residential Second Quarter 2024 Earnings Release & Supplemental Information Se . : - Featured Communities (top to i Trailwinds Grapevine - Grapevine, TX Acquired: July 2024 om Iris O4W - Atlanta, GA Acquired: July 2024 Investor Relations DISCLOSER ESG REGIONAL 2023 TOP RATED
Slide 2: Table of Contents
Second Quarter 2024 Results Table of Contents Earnings Release ......................................................................................................... 1-5 Consolidated Statements of Operations ................................................................... 6 Consolidated Statem
Slide 3: Equity Residential Reports Second Quarter 2024 Results
Table of Contents NEWS RELEASE - FOR IMMEDIATE RELEASE July 29, 2024 Equity Residential Reports Second Quarter 2024 Results Guidance Updated on Strong Operating Fundamentals Chicago, IL – July 29, 2024 - Equity Residential (NYSE: EQR) today reported results for the quarter and six months ended June
Slide 4: Full Year 2024 Guidance
Table of Contents Full Year 2024 Guidance The Company has revised its guidance for its full year 2024 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
Slide 5: Same Store Results
Table of Contents Positive/(Negative) Impact Second Quarter 2024 vs. June YTD 2024 vs. Second Quarter 2023 June YTD 2023 Same store NOI $ 0.04 $ 0.10 Lease-Up NOI – 0.01 2024 and 2023 transaction activity impact on NOI, net (0.01) (0.02) Corporate overhead (0.01) (0.02) Other items 0.01 0.02 Net $ 0
Slide 6: Residential Same Store Operating Statistics
Table of Contents Residential Same Store Operating Statistics The following table includes select operating metrics for Residential Same Store Properties (for 77,054 same store apartment units): Q2 2024 Q1 2024 Physical Occupancy 96.4% 96.3% Percentage of Residents Renewing by quarter 57.6% 61.1% Ne
Slide 7: About Equity Residential
Table of Contents 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
Slide 8: Consolidated Statements of Operations
Table of Contents Equity Residential Consolidated Statements of Operations (Amounts in thousands except per share data) (Unaudited) Six Months Ended June 30, Quarter Ended June 30, 2024 2023 2024 2023 REVENUES Rental income $ 1,464,981 $ 1,422,397 $ 734,163 $ 717,309 EXPENSES Property and maintenanc
Slide 9: Consolidated Statements of Funds From Operations and Normalized FFO
Table of Contents Equity Residential Consolidated Statements of Funds From Operations and Normalized Funds From Operations (Amounts in thousands except per share and Unit data) (Unaudited) Six Months Ended June 30, Quarter Ended June 30, 2024 2023 2024 2023 Net income $ 488,587 $ 364,933 $ 183,555 $
Slide 10: Consolidated Balance Sheets
Table of Contents Equity Residential Consolidated Balance Sheets (Amounts in thousands except for share amounts) (Unaudited) June 30, December 31, 2024 2023 ASSETS Land $ 5,540,352 $ 5,581,876 Depreciable property 23,004,377 22,938,426 Projects under development 188,283 78,036 Land held for developm
Slide 11: Portfolio Summary
Table of Contents Equity Residential Portfolio Summary As of June 30, 2024 % of Stabilized Average Apartment Budgeted Rental Markets/Metro Areas Properties Units NOI Rate Established Markets: Los Angeles 58 14,732 17.3% $ 2,936 Orange County 12 3,718 5.0% 2,914 San Diego 12 2,878 4.0% 3,127 Subtotal
Slide 12: Portfolio Rollforward
Table of Contents Equity Residential Portfolio Rollforward Q2 2024 ($ in thousands) Apartment Purchase Acquisition Properties Units Price Cap Rate 3/31/2024 299 79,688 Acquisitions: Consolidated Rental Properties – Not Stabilized (1) 1 160 $ 62,595 5.7% Unconsolidated Land Parcels (2) — — $ 33,394 D
Slide 13: Same Store Results/Statistics Q2 2024
Table of Contents Equity Residential Second Quarter 2024 vs. Second Quarter 2023 Same Store Results/Statistics Including 77,054 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands except for Average Rental Rate) Results Statistics Average Rental Physical Description
Slide 14: Same Store Residential Revenues – GAAP to Cash Basis
Table of Contents Equity Residential Same Store Residential Revenues – GAAP to Cash Basis (1) ($ in thousands) Second Quarter 2024 vs. Second Quarter 2023 Second Quarter 2024 vs. First Quarter 2024 June YTD 2024 vs. June YTD 2023 77,054 Same Store Apartment Units 77,893 Same Store Apartment Units 77
Slide 15: Same Store Residential Accounts Receivable and Bad Debt
Table of Contents Equity Residential Same Store Residential Accounts Receivable Balances Including 77,054 Same Store Apartment Units ($ in thousands) Balance Sheet (Other assets): June 30, 2024 March 31, 2024 June 30, 2023 Residential accounts receivable balances $ 16,271 $ 18,120 $ 26,534 Allowance
Slide 16: Q2 2024 vs. Q2 2023 Same Store Results by Market
Table of Contents Equity Residential Second Quarter 2024 vs. Second Quarter 2023 Same Store Residential Results/Statistics by Market Increase (Decrease) from Prior Year's Quarter Q2 2024 Q2 2024 Q2 2024 Weighted % of Average Average Average Apartment Actual Rental Physical Q2 2024 Rental Physical Ma
Slide 17: Q2 2024 vs. Q1 2024 Same Store Results by Market
Table of Contents Equity Residential Second Quarter 2024 vs. First Quarter 2024 Same Store Residential Results/Statistics by Market Increase (Decrease) from Prior Quarter Q2 2024 Q2 2024 Q2 2024 Weighted % of Average Average Average Apartment Actual Rental Physical Q2 2024 Rental Physical Markets/Me
Slide 18: June YTD 2024 vs. June YTD 2023 Results by Market
Table of Contents Equity Residential June YTD 2024 vs. June YTD 2023 Same Store Residential Results/Statistics by Market Increase (Decrease) from Prior Year June YTD 24 June YTD 24 June YTD 24 Weighted % of Average Average Average Apartment Actual Rental Physical June YTD 24 Rental Physical Markets/
Slide 19: Same Store Residential Net Effective Lease Pricing Statistics
Table of Contents Equity Residential Same Store Residential Net Effective Lease Pricing Statistics For 77,054 Same Store Apartment Units New Lease Change (1) Renewal Rate Achieved (1) Blended Rate (1) Markets/Metro Areas Q2 2024 Q1 2024 Q2 2024 Q1 2024 Q2 2024 Q1 2024 Southern California (2.4%) (3.6
Slide 20: Total Same Store Operating Expenses
Table of Contents Equity Residential Second Quarter 2024 vs. Second Quarter 2023 Total Same Store Operating Expenses Including 77,054 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands) % of Q2 2024 $ % Operating Q2 2024 Q2 2023 Change Change Expenses Real estate t
Slide 21: Debt Summary
Table of Contents Equity Residential Debt Summary as of June 30, 2024 ($ in thousands) Weighted Weighted Average Debt Average Maturities Balances (1) % of Total Rates (1) (years) Secured $ 1,634,838 22.8% 3.86% 7.4 Unsecured 5,522,345 77.2% 3.63% 8.0 Total $ 7,157,183 100.0% 3.69% 7.9 Fixed Rate Deb
Slide 22: Debt Maturity Schedule
Table of Contents Equity Residential Debt Maturity Schedule as of June 30, 2024 ($ in thousands) Weighted Weighted Average Coupons Average Fixed Floating on Fixed Coupons on Year Rate Rate Total % of Total Rate Debt (1) Total Debt (1) 2024 $ — $ 177,200 (2) $ 177,200 2.5% — 5.48% 2025 450,000 8,100
Slide 23: Selected Unsecured Public Debt Covenants and Credit Ratios
Table of Contents Equity Residential Selected Unsecured Public Debt Covenants June 30, March 31, 2024 2024 Debt to Adjusted Total Assets (not to exceed 60%) 25.6% 25.8% Secured Debt to Adjusted Total Assets (not to exceed 40%) 6.7% 6.7% Consolidated Income Available for Debt Service to Maximum Annua
Slide 24: Capital Structure
Table of Contents Equity Residential Capital Structure as of June 30, 2024 (Amounts in thousands except for share/unit and per share amounts) Secured Debt $ 1,634,838 22.8% Unsecured Debt 5,522,345 77.2% Total Debt 7,157,183 100.0% 20.9% Common Shares (includes Restricted Shares) 379,086,882 97.0% U
Slide 25: Common Share and Unit Weighted Average Amounts Outstanding
Table of Contents Equity Residential Common Share and Unit Weighted Average Amounts Outstanding June YTD 2024 June YTD 2023 Q2 2024 Q2 2023 Weighted Average Amounts Outstanding for Net Income Purposes: Common Shares - basic 378,699,050 378,492,171 378,578,395 378,641,804 Shares issuable from assumed
Slide 26: Development and Lease-Up Projects
Table of Contents Equity Residential Development and Lease-Up Projects as of June 30, 2024 (Amounts in thousands except for project and apartment unit amounts) Estimated/Actual Total Total No. of Budgeted Book Percentage Ownership Apartment Capital Value Total Percentage Start Initial Completion Sta
Slide 27: Capital Expenditures to Real Estate
Table of Contents Equity Residential Capital Expenditures to Real Estate For the Six Months Ended June 30, 2024 (Amounts in thousands except for apartment unit and per apartment unit amounts) Same Store Non-Same Store Total Consolidated Same Store Avg. Properties Properties/Other Properties Per Apar
Slide 28: Normalized EBITDAre Reconciliations
Table of Contents Equity Residential Normalized EBITDAre Reconciliations (Amounts in thousands) Trailing Twelve Months 2024 2023 June 30, 2024 March 31, 2024 Q2 Q1 Q4 Q3 Q2 Net income $ 992,142 $ 953,449 $ 183,555 $ 305,032 $ 322,269 $ 181,286 $ 144,862 Interest expense incurred, net 270,605 270,367
Slide 29: Adjustments from FFO to Normalized FFO
Table of Contents Equity Residential Adjustments from FFO to Normalized FFO (Amounts in thousands) Six Months Ended June 30, Quarter Ended June 30, 2024 2023 Variance 2024 2023 Variance Impairment – non-operating real estate assets $ — $ — $ — $ — $ — $ — Write-off of pursuit costs (other expenses)
Slide 30: Normalized FFO Guidance and Assumptions
Table of Contents 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 extingu
Slide 31: Additional Reconciliations and Definitions of Non-GAAP Financial Measures
Table of Contents 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 cer
Slide 32: Additional Reconciliations and Definitions – Continued
Table of Contents Equity Residential Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms – Continued (Amounts in thousands except per share and per apartment unit data) (All per share data is diluted) Debt Covenant Compliance – Our unsecured debt includes certai
Slide 33: Additional Reconciliations and Definitions – Continued
Table of Contents Equity Residential Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms – Continued (Amounts in thousands except per share and per apartment unit data) (All per share data is diluted) Established Markets – Includes Boston, New York, Washington,
Slide 34: Additional Reconciliations and Definitions – Continued
Table of Contents Equity Residential Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms – Continued (Amounts in thousands except per share and per apartment unit data) (All per share data is diluted) The following table presents reconciliations of EPS to FFO pe
Slide 35: Additional Reconciliations and Definitions – Continued
Table of Contents Equity Residential Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms – Continued (Amounts in thousands except per share and per apartment unit data) (All per share data is diluted) Six Months Ended June 30, Quarter Ended June 30, Rental incom
Slide 36: Additional Reconciliations and Definitions – Continued
Table of Contents Equity Residential Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms – Continued (Amounts in thousands except per share and per apartment unit data) (All per share data is diluted) Same Store Properties – For annual comparisons, primarily inc