Equity Residential Reports Second Quarter 2022 Results

Robust Demand and Continued Strong Cost Controls Drive Guidance Improvements

CHICAGO--(BUSINESS WIRE)--Equity Residential (NYSE: EQR) today reported results for the quarter and six months ended June 30, 2022.

Second Quarter 2022 Results

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

	Quarter Ended June 30,
	2022		2021		$ Change			% Change
Earnings Per Share (EPS)	$	0.59	$	0.84	$	(0.25	)		(29.8	%)
Funds from Operations (FFO) per share	$	0.89	$	0.78	$	0.11			14.1	%
Normalized FFO per share	$	0.89	$	0.72	$	0.17			23.6	%

	Six Months Ended June 30,
	2022		2021		$ Change			% Change
Earnings Per Share (EPS)	$	0.78	$	1.00	$	(0.22	)		(22.0	%)
Funds from Operations (FFO) per share	$	1.66	$	1.45	$	0.21			14.5	%
Normalized FFO per share	$	1.66	$	1.40	$	0.26			18.6	%

“We delivered outstanding results this quarter supported by favorable supply-and-demand dynamics and a healthy labor market bolstering employment and wages. As a result, we are pleased to significantly raise our full year same store revenue, NOI and Normalized FFO guidance,” said Mark J. Parrell, Equity Residential’s President and CEO. “Going forward, we expect elevated single family home ownership costs and positive household formation trends to buffer the impact on our business from economic weakness and see our affluent resident base as more resilient to rising inflation due to higher levels of disposable income and lower relative rent-to-income ratios.”

Recent Highlights

• The Company reported a 13.6% increase in same store revenue for the second quarter of 2022 compared to the same period of 2021, driven by strong Physical Occupancy and continued growth in pricing power. Same store expense growth continued to remain in check at 3.1% driven by favorable real estate tax and payroll expense.
• The Company has increased the midpoint of its full year 2022 same store revenue guidance to 10.5% from 9.0% and adjusted various guidance ranges as described in the table below.
• The Company sold a 354-unit apartment property in New York for approximately $265.7 million in April 2022 and in July 2022 sold a 455-unit apartment property in New York for $415.0 million.

Full Year 2022 Guidance

The Company has revised its guidance for its full year 2022 same store operating performance, EPS, FFO per share, Normalized FFO per share and transactions as listed below:

	Revised	Previous	Change at Midpoint
Same Store (includes Residential and Non-Residential):
Physical Occupancy	96.5%	96.5%	0.0%
Revenue change	10.0% to 11.0%	8.0% to 10.0%	1.5%
Expense change	2.5% to 3.5%	2.5% to 3.5%	0.0%
NOI change	13.75% to 14.75%	11.0% to 13.0%	2.25%
EPS	$1.98 to $2.08	$4.18 to $4.28	$(2.20)
FFO per share	$3.45 to $3.55	$3.36 to $3.46	$0.09
Normalized FFO per share	$3.48 to $3.58	$3.40 to $3.50	$0.08
Transactions ^(1):
Consolidated rental acquisitions	$113.0 million	$2.0 billion
Consolidated rental dispositions	$746.0 million	$2.0 billion

(1)	Given current uncertainty in the transaction environment, the Company’s revised acquisition and disposition guidance reflects no additional activities beyond one sale for $65.5 million currently under contract and scheduled to close in the fourth quarter of 2022.

The change in the full year 2022 EPS guidance range is due primarily to lower expected property sale gains and the items described below.

The change in the full year 2022 FFO per share guidance range is due primarily to the items described below.

The change in the full year 2022 Normalized FFO per share guidance range is due primarily to:

	Positive/(Negative) Impact
	Revised Full Year 2022 vs Previous Full Year 2022
Residential same store Net Operating Income (NOI)	$	0.09
2022 and 2021 transaction activity impact on NOI, net		(0.02	)
Interest expense, net		0.01
Net	$	0.08

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 six months ended June 30, 2022 compared to the same periods of 2021 are due primarily to lower property sale gains and higher depreciation expense in the current periods, offset by 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 six months ended June 30, 2022 compared to the same periods of 2021 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
	Second Quarter 2022 vs. Second Quarter 2021			June YTD 2022 vs. June YTD 2021
Residential Same Store NOI	$	0.18		$	0.27
Non-Residential same store NOI		0.01			0.01
Lease-Up NOI		0.01			0.02
2022 and 2021 transaction activity impact on NOI, net	–				0.01
Interest expense, net		(0.01	)		(0.02	)
Other items		(0.02	)		(0.03	)
Net	$	0.17		$	0.26

Same Store Results

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

	Second Quarter 2022 vs. Second Quarter 2021	Second Quarter 2022 vs. First Quarter 2022	June YTD 2022 vs. June YTD 2021
Apartment Units	74,057	78,108	74,057
Physical Occupancy	96.7% vs. 96.1%	96.7% vs. 96.4%	96.5% vs. 95.5%
Revenues	13.6%	5.3%	10.7%
Expenses	3.1%	(2.9%)	2.8%
NOI	19.1%	9.6%	15.0%

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 3.8% of total revenues for the six months ended June 30, 2022.

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.

	Second Quarter 2022 vs. Second Quarter 2021			Second Quarter 2022 vs. First Quarter 2022			June YTD 2022 vs. June YTD 2021
	% Change			% Change			% Change
Same Store Residential Revenues-
comparable period
Lease rates		8.3	%		2.7	%		6.3	%
Leasing Concessions		2.0	%		0.3	%		1.7	%
Vacancy gain (loss)		0.2	%		0.1	%		0.7	%
Bad Debt, Net ^(1)		2.5	%		1.9	%		1.6	%
Other ^(2)		0.7	%		0.4	%		0.5	%
Same Store Residential Revenues-		13.7	%		5.4	%		10.8	%
current period

(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.
(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:

	Q1 2022	Q2 2022	July 2022 (1)
Physical Occupancy ^(2)	96.3%	96.4%	96.5%
Percentage of Residents Renewing by quarter/month	59.9%	56.3%	55.0%
New Lease Change	15.3%	19.2%	16.4%
Renewal Rate Achieved	12.0%	11.2%	10.0%
Blended Rate	13.3%	14.8%	12.9%

(1)	July 2022 results are preliminary. Moderation in July operating metrics is being driven by a more challenging 2021 comparable period, not a loss in operating momentum, as our sequential rents continue to grow.
(2)	Physical Occupancy is as of month-end March for Q1 2022, month-end June for Q2 2022 and as of July 21st for July 2022.

Investment Activity and Portfolio Strategy

The Company did not acquire any properties during the second quarter of 2022. During the first six months of 2022, the Company acquired a 172-unit apartment property in San Diego, built in 2020, for $113.0 million at an Acquisition Cap Rate of 3.5%.

During the second quarter of 2022, the Company sold a 354-unit apartment property in New York, built in 2003, for approximately $265.7 million at a Disposition Yield of 3.3%, generating an Unlevered IRR of 6.6%. Subsequent to the end of the second quarter, the Company sold a 455-unit apartment property in New York, built in 2001, for $415.0 million at a Disposition Yield of 3.4%.

Also during the second quarter of 2022, the Company began construction on one wholly owned densification project located in Santa Clara, CA for the development of 225 apartment units and one unconsolidated project located in Ft. Worth, TX for the development of 362 apartment units as part of its joint venture with Toll Brothers.

Third Quarter 2022 Guidance

The Company has established guidance ranges for the third quarter of 2022 EPS, FFO per share and Normalized FFO per share as listed below:

	Q3 2022 Guidance
EPS	$0.77 to $0.81
FFO per share	$0.87 to $0.91
Normalized FFO per share	$0.89 to $0.93

The difference between the second quarter of 2022 actual EPS of $0.59 and the third quarter of 2022 EPS guidance midpoint of $0.79 is due primarily to higher expected property sale gains and the items described below.

There is no net change between the second quarter of 2022 actual FFO of $0.89 per share and the third quarter of 2022 FFO guidance midpoint of $0.89 per share.

The difference between the second quarter of 2022 actual Normalized FFO of $0.89 per share and the third quarter of 2022 Normalized FFO guidance midpoint of $0.91 per share is due primarily to:

	Positive/(Negative) Impact
	Third Quarter 2022 vs. Second Quarter 2022
Residential Same Store NOI	$	0.01
2022 transaction activity impact on NOI, net		(0.01	)
Interest expense, net		0.01
Other items		0.01
Net	$	0.02

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 310 properties consisting of 80,227 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, competition and government regulation. In addition, these forward-looking statements are subject to risks related to the COVID-19 pandemic, many of which are unknown, including the duration and severity of the pandemic, the extent of the adverse health impact on the general population and on our residents, customers and employees in particular, its impact on the employment rate and the economy and the corresponding impact on our residents’ and tenants’ ability to pay their rent on time or at all, the extent and impact of governmental responses, the rollout and effectiveness of vaccines and the impact of operational changes we have implemented and may implement in response to the pandemic. Other risks and uncertainties are described under the heading “Risk Factors” in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityapartments.com. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

A live web cast of the Company’s conference call discussing these results will take place tomorrow, Wednesday, July 27, 2022 at 10:00 a.m. CT. 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)
	Six Months Ended June 30,						Quarter Ended June 30,
	2022			2021			2022			2021
REVENUES
Rental income	$	1,340,378		$	1,195,661		$	687,030		$	598,059
EXPENSES
Property and maintenance		241,229			224,800			116,355			107,746
Real estate taxes and insurance		202,538			200,871			101,850			97,401
Property management		57,306			50,585			26,559			24,455
General and administrative		33,661			30,061			16,423			14,678
Depreciation		453,767			400,635			223,806			200,673
Total expenses		988,501			906,952			484,993			444,953
Net gain (loss) on sales of real estate properties		107,795			223,695			107,897			223,738
Operating income		459,672			512,404			309,934			376,844
Interest and other income		4,124			24,320			596			24,104
Other expenses		(5,436	)		(7,452	)		(2,380	)		(3,342	)
Interest:
Expense incurred, net		(144,681	)		(134,482	)		(71,889	)		(67,124	)
Amortization of deferred financing costs		(4,201	)		(4,124	)		(2,124	)		(1,939	)
Income before income and other taxes, income (loss) from		309,478			390,666			234,137			328,543
investments in unconsolidated entities and net gain (loss)
on sales of land parcels
Income and other tax (expense) benefit		(573	)		(395	)		(291	)		(242	)
Income (loss) from investments in unconsolidated entities		(2,429	)		(1,872	)		(1,168	)		(261	)
Net gain (loss) on sales of land parcels		—			5			—			—
Net income		306,476			388,404			232,678			328,040
Net (income) loss attributable to Noncontrolling Interests:
Operating Partnership		(10,027	)		(13,056	)		(7,633	)		(10,913	)
Partially Owned Properties		(1,583	)		(1,423	)		(944	)		(741	)
Net income attributable to controlling interests		294,866			373,925			224,101			316,386
Preferred distributions		(1,545	)		(1,545	)		(773	)		(772	)
Net income available to Common Shares	$	293,321		$	372,380		$	223,328		$	315,614
Earnings per share – basic:
Net income available to Common Shares	$	0.78		$	1.00		$	0.59		$	0.84
Weighted average Common Shares outstanding		375,640			373,050			375,769			373,812
Earnings per share – diluted:
Net income available to Common Shares	$	0.78		$	1.00		$	0.59		$	0.84
Weighted average Common Shares outstanding		389,463			387,367			389,363			387,820
Distributions declared per Common Share outstanding	$	1.25		$	1.205		$	0.625		$	0.6025

Equity Residential Consolidated Statements of Funds From Operations and Normalized Funds From Operations (Amounts in thousands except per share data) (Unaudited)
	Six Months Ended June 30,						Quarter Ended June 30,
	2022			2021			2022			2021
Net income	$	306,476		$	388,404		$	232,678		$	328,040
Net (income) loss attributable to Noncontrolling Interests – Partially		(1,583	)		(1,423	)		(944	)		(741	)
Owned Properties
Preferred distributions		(1,545	)		(1,545	)		(773	)		(772	)
Net income available to Common Shares and Units		303,348			385,436			230,961			326,527
Adjustments:
Depreciation		453,767			400,635			223,806			200,673
Depreciation – Non-real estate additions		(2,114	)		(2,176	)		(1,062	)		(1,076	)
Depreciation – Partially Owned Properties		(1,554	)		(1,682	)		(661	)		(854	)
Depreciation – Unconsolidated Properties		1,240			1,233			620			616
Net (gain) loss on sales of unconsolidated entities - operating		(9	)		(4	)		—			—
assets
Net (gain) loss on sales of real estate properties		(107,795	)		(223,695	)		(107,897	)		(223,738	)
FFO available to Common Shares and Units		646,883			559,747			345,767			302,148
Adjustments (see note for additional detail):
Impairment – non-operating assets		—			—			—			—
Write-off of pursuit costs		2,515			2,647			1,052			1,316
Debt extinguishment and preferred share redemption (gains)		469			264			469			—
losses
Non-operating asset (gains) losses		(1,330	)		(23,308	)		312			(24,162	)
Other miscellaneous items		(185	)		3,341			186			1,099
Normalized FFO available to Common Shares and Units	$	648,352		$	542,691		$	347,786		$	280,401
FFO	$	648,428		$	561,292		$	346,540		$	302,920
Preferred distributions		(1,545	)		(1,545	)		(773	)		(772	)
FFO available to Common Shares and Units	$	646,883		$	559,747		$	345,767		$	302,148
FFO per share and Unit – basic	$	1.67		$	1.45		$	0.89		$	0.78
FFO per share and Unit – diluted	$	1.66		$	1.45		$	0.89		$	0.78
Normalized FFO	$	649,897		$	544,236		$	348,559		$	281,173
Preferred distributions		(1,545	)		(1,545	)		(773	)		(772	)
Normalized FFO available to Common Shares and Units	$	648,352		$	542,691		$	347,786		$	280,401
Normalized FFO per share and Unit – basic	$	1.67		$	1.41		$	0.90		$	0.73
Normalized FFO per share and Unit – diluted	$	1.66		$	1.40		$	0.89		$	0.72
Weighted average Common Shares and Units outstanding – basic		387,531			385,594			387,664			385,856
Weighted average Common Shares and Units outstanding – diluted		389,463			387,367			389,363			387,820
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)
	June 30,			December 31,
	2022			2021
ASSETS
Land	$	5,733,412		$	5,814,790
Depreciable property		22,443,313			22,370,811
Projects under development		65,161			24,307
Land held for development		59,573			62,998
Investment in real estate		28,301,459			28,272,906
Accumulated depreciation		(8,740,806	)		(8,354,282	)
Investment in real estate, net		19,560,653			19,918,624
Investments in unconsolidated entities^1		169,272			127,448
Cash and cash equivalents		45,010			123,832
Restricted deposits		73,641			236,404
Right-of-use assets		468,834			474,713
Other assets		256,935			288,220
Total assets	$	20,574,345		$	21,169,241
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net	$	1,944,404		$	2,191,201
Notes, net		5,838,693			5,835,222
Line of credit and commercial paper		184,946			315,030
Accounts payable and accrued expenses		119,402			107,013
Accrued interest payable		69,037			69,510
Lease liabilities		310,513			312,335
Other liabilities		292,205			353,102
Security deposits		69,609			66,141
Distributions payable		242,667			233,502
Total liabilities		9,071,476			9,483,056
Commitments and contingencies
Redeemable Noncontrolling Interests – Operating Partnership		398,188			498,977
Equity:
Shareholders’ equity:
Preferred Shares of beneficial interest, $0.01 par value;		37,280			37,280
100,000,000 shares authorized; 745,600 shares issued and
outstanding as of June 30, 2022 and December 31, 2021
Common Shares of beneficial interest, $0.01 par value;		3,761			3,755
1,000,000,000 shares authorized; 376,118,433 shares issued
and outstanding as of June 30, 2022 and 375,527,195
shares issued and outstanding as of December 31, 2021
Paid in capital		9,229,738			9,121,122
Retained earnings		1,649,960			1,827,063
Accumulated other comprehensive income (loss)		(30,650	)		(34,272	)
Total shareholders’ equity		10,890,089			10,954,948
Noncontrolling Interests:
Operating Partnership		216,326			214,094
Partially Owned Properties		(1,734	)		18,166
Total Noncontrolling Interests		214,592			232,260
Total equity		11,104,681			11,187,208
Total liabilities and equity	$	20,574,345		$	21,169,241
_________________________
^1Includes $110.7 million and $72.5 million in unconsolidated development projects as of June 30, 2022 and December 31, 2021, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated development projects.

Equity Residential Portfolio Summary As of June 30, 2022
					% of Stabilized			Average
			Apartment		Budgeted			Rental
Markets/Metro Areas	Properties		Units		NOI			Rate
Established Markets:
Los Angeles		66		15,259		18.6	%	$	2,815
Orange County		13		4,028		5.3	%		2,659
San Diego		12		2,878		4.0	%		2,744
Subtotal – Southern California		91		22,165		27.9	%		2,778
San Francisco		44		11,830		16.0	%		3,148
Washington DC		48		14,851		15.7	%		2,440
New York		35		8,991		13.2	%		3,995
Boston		27		7,170		11.4	%		3,215
Seattle		46		9,525		11.0	%		2,478
Subtotal – Established Markets		291		74,532		95.2	%		2,921
Expansion Markets:
Denver		8		2,498		2.6	%		2,278
Atlanta		4		1,215		1.0	%		1,993
Dallas/Ft. Worth		4		1,241		0.8	%		1,877
Austin		3		741		0.4	%		1,724
Subtotal – Expansion Markets		19		5,695		4.8	%		2,059
Total		310		80,227		100.0	%	$	2,860

	Properties		Apartment Units
Wholly Owned Properties		295		77,113
Partially Owned Properties – Consolidated (1)		15		3,114
		310		80,227

Note: Projects under development are not included in the Portfolio Summary until construction has been completed.
(1)	During the second quarter of 2022, the Company acquired its joint venture partner’s 25% interest in a 432-unit apartment property in Chevy Chase, MD for $32.2 million, and the property is now wholly owned.

Equity Residential
Portfolio Rollforward Q2 2022 ($ in thousands)
		Properties			Apartment Units			Sales Price			Disposition Yield
	3/31/2022		311			80,581
Dispositions:
Consolidated Rental Properties			(1	)		(354	)	$	(265,650	)		(3.3	%)
	6/30/2022		310			80,227

Portfolio Rollforward 2022 ($ in thousands)
		Properties			Apartment Units			Purchase Price			Acquisition Cap Rate
12/31/2021			310			80,407
Acquisitions:
Consolidated Rental Properties			1			172		$	113,000			3.5	%
								Sales Price			Disposition Yield
Dispositions:
Consolidated Rental Properties			(1	)		(354	)	$	(265,650	)		(3.3	%)
Configuration Changes			—			2
	6/30/2022		310			80,227

Equity Residential
Second Quarter 2022 vs. Second Quarter 2021 Same Store Results/Statistics Including 74,057 Same Store Apartment Units ($ in thousands except for Average Rental Rate)
Second Quarter 2022												Second Quarter 2021
	Residential				% Change	Non- Residential		% Change	Total		% Change		Residential			Non- Residential		Total
Revenues	$	622,358		(1)	13.7%	$	23,439	12.3%	$	645,797	13.6%	Revenues	$	547,502		$	20,863	$	568,365
Expenses	$	195,372			3.1%	$	5,993	1.5%	$	201,365	3.1%	Expenses	$	189,425		$	5,903	$	195,328
NOI	$	426,986			19.2%	$	17,446	16.6%	$	444,432	19.1%	NOI	$	358,077		$	14,960	$	373,037
Average Rental Rate	$	2,900			13.0%							Average Rental Rate	$	2,566
Physical Occupancy		96.7	%		0.6%							Physical Occupancy		96.1	%
Turnover		11.1	%		(0.3%)							Turnover		11.4	%

Second Quarter 2022 vs. First Quarter 2022 Same Store Results/Statistics Including 78,108 Same Store Apartment Units ($ in thousands except for Average Rental Rate)
Second Quarter 2022												First Quarter 2022
	Residential				% Change	Non- Residential		% Change	Total		% Change		Residential			Non- Residential		Total
Revenues	$	646,187		(1)	5.4%	$	23,929	2.9%	$	670,116	5.3%	Revenues	$	612,924		$	23,246	$	636,170
Expenses	$	204,750			(2.8%)	$	6,132	(3.1%)	$	210,882	(2.9%)	Expenses	$	210,740		$	6,331	$	217,071
NOI	$	441,437			9.8%	$	17,797	5.2%	$	459,234	9.6%	NOI	$	402,184		$	16,915	$	419,099
Average Rental Rate	$	2,855			5.2%							Average Rental Rate	$	2,715
Physical Occupancy		96.7	%		0.3%							Physical Occupancy		96.4	%
Turnover		11.2	%		2.4%							Turnover		8.8	%

June YTD 2022 vs. June YTD 2021 Same Store Results/Statistics Including 74,057 Same Store Apartment Units ($ in thousands except for Average Rental Rate)
June YTD 2022												June YTD 2021
	Residential				% Change	Non- Residential		% Change	Total		% Change		Residential			Non- Residential		Total
Revenues	$	1,211,971		(1)	10.8%	$	46,262	9.5%	$	1,258,233	10.7%	Revenues	$	1,094,291		$	42,246	$	1,136,537
Expenses	$	396,666			2.8%	$	12,183	2.0%	$	408,849	2.8%	Expenses	$	385,818		$	11,944	$	397,762
NOI	$	815,305			15.1%	$	34,079	12.5%	$	849,384	15.0%	NOI	$	708,473		$	30,302	$	738,775
Average Rental Rate	$	2,827			9.6%							Average Rental Rate	$	2,580
Physical Occupancy		96.5	%		1.0%							Physical Occupancy		95.5	%
Turnover		19.8	%		(1.5%)							Turnover		21.3	%

(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.

Equity Residential
Same Store Residential Revenues – GAAP to Cash Basis (1) ($ in thousands)
	Second Quarter 2022 vs. Second Quarter 2021						Second Quarter 2022 vs. First Quarter 2022						June YTD 2022 vs. June YTD 2021
	74,057 Same Store Apartment Units						78,108 Same Store Apartment Units						74,057 Same Store Apartment Units
	Q2 2022			Q2 2021			Q2 2022			Q1 2022			June YTD 2022			June YTD 2021
Same Store Residential Revenues (GAAP Basis)	$	622,358		$	547,502		$	646,187		$	612,924		$	1,211,971		$	1,094,291
Leasing Concessions amortized		1,703			12,871			2,103			3,971			5,298			24,381
Leasing Concessions granted		(1,253	)		(8,009	)		(1,447	)		(1,559	)		(2,603	)		(24,794	)
Same Store Residential Revenues with Leasing Concessions on a cash basis	$	622,808		$	552,364		$	646,843		$	615,336		$	1,214,666		$	1,093,878
% change - GAAP revenue		13.7	%					5.4	%					10.8	%
% change - cash revenue		12.8	%					5.1	%					11.0	%

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

Same Store Net Operating Income By Quarter Including 74,057 Same Store Apartment Units ($ in thousands)
	Q2 2022		Q1 2022		Q4 2021		Q3 2021		Q2 2021
Same store revenues	$	645,797	$	612,436	$	608,065	$	589,545	$	568,365
Same store expenses		201,365		207,484		196,936		202,510		195,328
Same store NOI (includes Residential and Non-Residential)	$	444,432	$	404,952	$	411,129	$	387,035	$	373,037

Equity Residential
Same Store Resident/Tenant Accounts Receivable Balances Including 74,057 Same Store Apartment Units ($ in thousands)
	Residential							Non-Residential
Balance Sheet (Other assets):	June 30, 2022				March 31, 2022			June 30, 2022			March 31, 2022
Resident/tenant accounts receivable balances	$	35,243			$	42,302		$	3,410		$	3,631
Allowance for doubtful accounts		(31,690	)			(37,875	)		(2,534	)		(2,379	)
Net receivable balances	$	3,553		(1)	$	4,427		$	876		$	1,252
Straight-line receivable balances	$	2,002		(2)	$	2,452		$	12,530		$	12,630

(1)	The Company held same store Residential security deposits approximating 63.0% of the net Residential receivable balance at June 30, 2022.
(2)	Total same store Residential Leasing Concessions granted in the second quarter of 2022 were approximately $1.3 million. The straight-line receivable balance of $2.0 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in the remainder of 2022 and the first half of 2023.

Same Store Residential Bad Debt Including 74,057 Same Store Apartment Units ($ in thousands)
Income Statement (Rental income):	Q2 2022			Q1 2022			Q2 2021
Bad Debt, Net (1)	$	(1,791	)	$	9,627		$	11,929
% of Same Store Residential Revenues		(0.3	%)		1.6	%		2.2	%

(1)	Bad Debt, Net benefited from additional resident payments due to governmental rental assistance programs of approximately $14.7 million and $9.6 million during the second quarter of 2022 and first quarter of 2022, respectively.

Equity Residential Second Quarter 2022 vs. Second Quarter 2021 Same Store Residential Results/Statistics by Market
														Increase (Decrease) from Prior Year's Quarter
Markets/Metro Areas	Apartment Units		Q2 2022 % of Actual NOI			Q2 2022 Average Rental Rate		Q2 2022 Weighted Average Physical Occupancy %			Q2 2022 Turnover			Revenues				Expenses			NOI			Average Rental Rate			Physical Occupancy			Turnover
Los Angeles		15,259		20.9	%	$	2,815		96.7	%		9.2	%		17.9	%	(1)		3.3	%		24.9	%		17.6	%		0.3	%		(1.3	%)
Orange County		4,028		5.8	%		2,659		97.2	%		8.8	%		17.2	%	(1)		4.7	%		20.9	%		17.9	%		(0.7	%)		0.5	%
San Diego		2,706		3.9	%		2,719		97.4	%		9.5	%		11.9	%			1.8	%		15.0	%		12.9	%		(0.8	%)		(0.6	%)
Subtotal – Southern California		21,993		30.6	%		2,775		96.9	%		9.2	%		17.0	%			3.3	%		22.8	%		17.1	%		0.0	%		(0.9	%)
San Francisco		11,366		17.4	%		3,152		96.7	%		9.4	%		12.7	%	(1)		3.5	%		16.9	%		11.0	%		1.4	%		(2.0	%)
Washington DC		14,322		15.8	%		2,432		96.8	%		11.4	%		5.5	%			7.9	%		4.4	%		5.0	%		0.5	%		(0.5	%)
New York		8,991		13.6	%		3,995		97.1	%		11.8	%		19.8	%			0.7	%		41.4	%		17.5	%		2.0	%		1.7	%
Seattle		9,331		11.1	%		2,476		95.3	%		14.6	%		11.9	%			(2.3	%)		18.6	%		12.2	%		(0.3	%)		0.9	%
Boston		6,430		9.7	%		3,153		96.8	%		11.9	%		12.6	%			5.4	%		15.9	%		11.6	%		0.8	%		0.1	%
Denver		1,624		1.8	%		2,277		96.8	%		18.2	%		12.8	%			7.8	%		14.8	%		13.0	%		(0.2	%)		2.9	%
Total		74,057		100.0	%	$	2,900		96.7	%		11.1	%		13.7	%	(2)		3.1	%		19.2	%		13.0	%		0.6	%		(0.3	%)

(1)	Excluding the positive impact of Bad Debt, Net which was primarily driven by receipt of governmental rental assistance, same store revenue growth would have been 8.8%, 12.8% and 9.8% for Los Angeles, Orange County and San Francisco, respectively.
(2)	With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 12.8% in the second quarter of 2022 compared to the second quarter of 2021. See page 12 for additional detail and reconciliations.
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the six months ended June 30, 2022.

Equity Residential Second Quarter 2022 vs. First Quarter 2022 Same Store Residential Results/Statistics by Market
														Increase (Decrease) from Prior Quarter
Markets/Metro Areas	Apartment Units		Q2 2022 % of Actual NOI			Q2 2022 Average Rental Rate		Q2 2022 Weighted Average Physical Occupancy %			Q2 2022 Turnover			Revenues				Expenses			NOI			Average Rental Rate			Physical Occupancy			Turnover
Los Angeles		15,259		20.2	%	$	2,815		96.7	%		9.2	%		8.9	%	(1)		(3.0	%)		14.5	%		8.9	%		0.0	%		0.9	%
Orange County		4,028		5.6	%		2,659		97.2	%		8.8	%		8.6	%	(1)		(0.7	%)		11.3	%		8.5	%		0.1	%		2.5	%
San Diego		2,706		3.8	%		2,719		97.4	%		9.5	%		2.5	%			(6.2	%)		5.2	%		2.1	%		0.5	%		0.6	%
Subtotal – Southern California		21,993		29.6	%		2,775		96.9	%		9.2	%		8.1	%			(3.0	%)		12.6	%		8.0	%		0.1	%		1.2	%
San Francisco		11,366		16.9	%		3,152		96.7	%		9.4	%		4.8	%	(1)		(4.7	%)		9.1	%		4.5	%		0.3	%		0.0	%
Washington DC		14,535		15.4	%		2,427		96.8	%		11.4	%		2.5	%			1.0	%		3.3	%		2.6	%		(0.1	%)		3.2	%
New York		8,991		13.1	%		3,995		97.1	%		11.8	%		6.9	%			(5.1	%)		19.0	%		6.9	%		0.1	%		3.5	%
Seattle		9,524		11.0	%		2,478		95.3	%		14.6	%		4.5	%			1.4	%		5.8	%		3.8	%		0.7	%		3.2	%
Boston		6,700		9.7	%		3,133		96.8	%		12.0	%		4.1	%			(5.3	%)		8.7	%		3.0	%		1.0	%		4.4	%
Denver		2,223		2.4	%		2,289		96.6	%		18.4	%		2.8	%			(2.7	%)		5.1	%		2.7	%		(0.1	%)		7.8	%
Other Expansion Markets		2,776		1.9	%		1,870		96.7	%		13.5	%		2.2	%			(0.6	%)		4.5	%		1.9	%		0.1	%		2.7	%
Total		78,108		100.0	%	$	2,855		96.7	%		11.2	%		5.4	%	(2)		(2.8	%)		9.8	%		5.2	%		0.3	%		2.4	%

(1)	Excluding the positive impact of Bad Debt, Net which was primarily driven by receipt of governmental rental assistance, same store revenue growth would have been 2.2%, 3.1% and 2.6% for Los Angeles, Orange County and San Francisco, respectively.
(2)	With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 5.1% in the second quarter of 2022 compared to the first quarter of 2022. See page 12 for additional detail and reconciliations.
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the six months ended June 30, 2022.

Equity Residential June YTD 2022 vs. June YTD 2021 Same Store Residential Results/Statistics by Market
														Increase (Decrease) from Prior Year
Markets/Metro Areas	Apartment Units		June YTD 22 % of Actual NOI			June YTD 22 Average Rental Rate		June YTD 22 Weighted Average Physical Occupancy %			June YTD 22 Turnover			Revenues				Expenses			NOI			Average Rental Rate			Physical Occupancy			Turnover
Los Angeles		15,259		20.5	%	$	2,700		96.7	%		17.5	%		13.3	%	(1)		3.0	%		18.3	%		12.6	%		0.6	%		(3.0	%)
Orange County		4,028		5.8	%		2,555		97.2	%		15.1	%		14.3	%	(1)		3.2	%		17.7	%		14.6	%		(0.2	%)		(1.0	%)
San Diego		2,706		4.0	%		2,693		97.1	%		18.4	%		11.8	%			4.1	%		14.3	%		12.6	%		(0.6	%)		(2.1	%)
Subtotal – Southern California		21,993		30.3	%		2,672		96.8	%		17.2	%		13.3	%			3.2	%		17.7	%		12.9	%		0.3	%		(2.5	%)
San Francisco		11,366		17.5	%		3,085		96.6	%		18.8	%		9.3	%	(1)		3.6	%		12.0	%		6.9	%		2.1	%		(4.2	%)
Washington DC		14,322		16.2	%		2,402		96.8	%		19.5	%		4.3	%			5.9	%		3.4	%		3.5	%		0.7	%		(2.0	%)
New York		8,991		13.1	%		3,867		97.1	%		20.1	%		16.8	%			1.5	%		35.0	%		12.1	%		4.0	%		1.6	%
Seattle		9,331		11.3	%		2,431		95.0	%		26.1	%		8.5	%			(3.9	%)		14.4	%		9.2	%		(0.6	%)		1.2	%
Boston		6,430		9.7	%		3,104		96.4	%		19.5	%		10.1	%			5.2	%		12.5	%		9.3	%		0.8	%		(1.2	%)
Denver		1,624		1.9	%		2,242		97.1	%		28.7	%		12.8	%			6.9	%		15.2	%		12.1	%		0.5	%		1.2	%
Total		74,057		100.0	%	$	2,827		96.5	%		19.8	%		10.8	%	(2)		2.8	%		15.1	%		9.6	%		1.0	%		(1.5	%)

(1)	Excluding the positive impact of Bad Debt, Net which was primarily driven by receipt of governmental rental assistance, same store revenue growth would have been 7.9%, 12.1% and 7.6% for Los Angeles, Orange County and San Francisco, respectively.
(2)	With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 11.0% in the six months ended June 30, 2022 compared to the six months ended June 30, 2021. See page 12 for additional detail and reconciliations.
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the six months ended June 30, 2022.

Equity Residential
Same Store Residential Net Effective Lease Pricing Statistics For 74,057 Same Store Apartment Units
	New Lease Change (1)						Renewal Rate Achieved (1)						Blended Rate (1)
Markets/Metro Areas	Q2 2022			Q1 2022			Q2 2022			Q1 2022			Q2 2022			Q1 2022
Southern California		15.7	%		14.6	%		7.1	%		7.2	%		10.6	%		10.0	%
San Francisco		14.9	%		12.7	%		9.1	%		12.6	%		11.7	%		12.6	%
Washington DC		11.2	%		9.0	%		8.3	%		7.0	%		9.6	%		7.8	%
New York		37.9	%		29.7	%		19.2	%		21.4	%		27.2	%		24.7	%
Seattle		17.5	%		13.0	%		13.1	%		16.4	%		15.3	%		14.6	%
Boston		17.8	%		13.1	%		12.4	%		15.6	%		14.9	%		14.4	%
Denver		12.7	%		11.0	%		12.3	%		11.8	%		12.5	%		11.3	%
Total		19.2	%		15.3	%		11.2	%		12.0	%		14.8	%		13.3	%

(1)	See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions. See page 3 for July 2022 preliminary data.

Equity Residential
Second Quarter 2022 vs. Second Quarter 2021 Total Same Store Operating Expenses Including 74,057 Same Store Apartment Units ($ in thousands)
	Q2 2022		Q2 2021		$ Change (1)			% Change			% of Q2 2022 Operating Expenses
Real estate taxes	$	86,191	$	86,026	$	165			0.2	%		42.8	%
On-site payroll		37,357		38,826		(1,469	)		(3.8	%)		18.5	%
Utilities		30,754		27,367		3,387			12.4	%		15.3	%
Repairs and maintenance		26,457		23,646		2,811			11.9	%		13.1	%
Insurance		7,185		6,613		572			8.6	%		3.6	%
Leasing and advertising		2,420		2,670		(250	)		(9.4	%)		1.2	%
Other on-site operating expenses		11,001		10,180		821			8.1	%		5.5	%
Total Same Store Operating Expenses (2) (includes Residential and Non-Residential)	$	201,365	$	195,328	$	6,037			3.1	%		100.0	%

June YTD 2022 vs. June YTD 2021 Total Same Store Operating Expenses Including 74,057 Same Store Apartment Units ($ in thousands)
	YTD 2022		YTD 2021		$ Change (1)			% Change			% of YTD 2022 Operating Expenses
Real estate taxes	$	172,621	$	172,052	$	569			0.3	%		42.2	%
On-site payroll		77,191		80,091		(2,900	)		(3.6	%)		18.9	%
Utilities		64,426		57,379		7,047			12.3	%		15.8	%
Repairs and maintenance		51,689		47,307		4,382			9.3	%		12.6	%
Insurance		14,359		13,226		1,133			8.6	%		3.5	%
Leasing and advertising		4,641		5,390		(749	)		(13.9	%)		1.1	%
Other on-site operating expenses		23,922		22,317		1,605			7.2	%		5.9	%
Total Same Store Operating Expenses (2) (includes Residential and Non-Residential)	$	408,849	$	397,762	$	11,087			2.8	%		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 – Improved sales and service staff utilization from various technology initiatives and higher than usual staffing vacancies during the periods presented.
	Utilities – Increase from gas and electric primarily driven by higher commodity prices.
	Repairs and maintenance – Increase primarily driven by volume and timing of maintenance and repairs along with increases in minimum wage on contracted services.
	Insurance – Increase due to higher premiums on property insurance renewal due to challenging conditions in the insurance market.
	Leasing and advertising – Decrease due primarily to reduction in use of outside brokers.
	Other on-site operating expenses – Increase 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 June 30, 2022 ($ in thousands)
	Debt Balances (1)		% of Total			Weighted Average Rates (1)			Weighted Average Maturities (years)
Secured	$	1,944,404		24.4	%		3.37	%		5.1
Unsecured		6,023,639		75.6	%		3.50	%		9.2
Total	$	7,968,043		100.0	%		3.47	%		8.2
Fixed Rate Debt:
Secured – Conventional	$	1,634,255		20.5	%		3.71	%		4.3
Unsecured – Public		5,838,693		73.3	%		3.60	%		9.5
Fixed Rate Debt		7,472,948		93.8	%		3.62	%		8.4
Floating Rate Debt:
Secured – Conventional		74,624		0.9	%		2.76	%		1.3
Secured – Tax Exempt		235,525		3.0	%		0.95	%		12.0
Unsecured – Revolving Credit Facility		—		—			—			2.3
Unsecured – Commercial Paper Program (2)		184,946		2.3	%		0.60	%		—
Floating Rate Debt		495,095		6.2	%		1.07	%		6.1
Total	$	7,968,043		100.0	%		3.47	%		8.2

(1)	See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
(2)	At June 30, 2022, the weighted average maturity of commercial paper outstanding was 12 days. The weighted average amount outstanding for the six months ended June 30, 2022 was approximately $186.7 million.
Note: The Company capitalized interest of approximately $2.3 million and $8.2 million during the six months ended June 30, 2022 and 2021, respectively. The Company capitalized interest of approximately $1.3 million and $4.4 million during the quarters ended June 30, 2022 and 2021, respectively.

Equity Residential
Debt Maturity Schedule as of June 30, 2022 ($ 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)
2022	$	326			$	185,118		(2)	$	185,444			2.3	%		3.48	%		1.72	%
2023		1,325,588		(3)		68,276				1,393,864			17.3	%		3.74	%		3.71	%
2024		—				6,100				6,100			0.1	%	N/A				0.96	%
2025		450,000				19,712				469,712			5.8	%		3.38	%		3.34	%
2026		592,025				9,000				601,025			7.5	%		3.58	%		3.54	%
2027		400,000				9,800				409,800			5.1	%		3.25	%		3.19	%
2028		900,000				10,700				910,700			11.3	%		3.79	%		3.76	%
2029		888,120				11,500				899,620			11.2	%		3.30	%		3.27	%
2030		1,095,000				12,600				1,107,600			13.8	%		2.55	%		2.53	%
2031		528,500				39,700				568,200			7.1	%		1.94	%		1.87	%
2032+		1,350,850				138,900				1,489,750			18.5	%		4.39	%		4.06	%
Subtotal		7,530,409				511,406				8,041,815			100.0	%		3.45	%		3.33	%
Deferred Financing Costs and Unamortized (Discount)		(57,461	)			(16,311	)			(73,772	)	N/A			N/A			N/A
Total	$	7,472,948			$	495,095			$	7,968,043			100.0	%		3.45	%		3.33	%

(1)	See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
(2)	Includes $185.0 million in principal outstanding on the Company’s commercial paper program.
(3)	The Company has sent a redemption notice on its $500.0 million unsecured notes due in 2023. The redemption is expected to occur in the third quarter of 2022 and will be funded from disposition proceeds.

Equity Residential
Selected Unsecured Public Debt Covenants
	June 30,		March 31,
	2022		2022
Debt to Adjusted Total Assets (not to exceed 60%)	29.0%		29.6%
Secured Debt to Adjusted Total Assets (not to exceed 40%)	7.9%		8.7%
Consolidated Income Available for Debt Service to		5.54		5.24
Maximum Annual Service Charges
(must be at least 1.5 to 1)
Total Unencumbered Assets to Unsecured Debt	461.5%		458.1%
(must be at least 125%)

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
	June 30,	March 31,
	2022	2022
Total debt to Normalized EBITDAre	5.05x	5.42x
Net debt to Normalized EBITDAre	5.01x	5.38x
Unencumbered NOI as a % of total NOI	88.4%	87.5%

Note: See Normalized EBITDAre Reconciliations for detail.

Equity Residential
Capital Structure as of June 30, 2022 (Amounts in thousands except for share/unit and per share amounts)
Secured Debt					$	1,944,404	24.4	%
Unsecured Debt						6,023,639	75.6	%
Total Debt						7,968,043	100.0	%	22.1	%
Common Shares (includes Restricted Shares)		376,118,433	96.7	%
Units (includes OP Units and Restricted Units)		12,851,180	3.3	%
Total Shares and Units		388,969,613	100.0	%
Common Share Price at June 30, 2022	$	72.22
						28,091,385	99.9	%
Perpetual Preferred Equity (see below)						37,280	0.1	%
Total Equity						28,128,665	100.0	%	77.9	%
Total Market Capitalization					$	36,096,708			100.0	%

Perpetual Preferred Equity as of June 30, 2022 (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
	June YTD 2022		June YTD 2021		Q2 2022		Q2 2021
Weighted Average Amounts Outstanding for Net Income Purposes:
Common Shares - basic		375,639,505		373,049,965		375,768,632		373,811,755
Shares issuable from assumed conversion/vesting of:
- OP Units		11,891,583		12,544,494		11,895,086		12,044,402
- long-term compensation shares/units		1,862,666		1,772,470		1,697,634		1,963,498
- ATM forward sales		68,823		—		1,470		—
Total Common Shares and Units - diluted		389,462,577		387,366,929		389,362,822		387,819,655
Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes:
Common Shares - basic		375,639,505		373,049,965		375,768,632		373,811,755
OP Units - basic		11,891,583		12,544,494		11,895,086		12,044,402
Total Common Shares and OP Units - basic		387,531,088		385,594,459		387,663,718		385,856,157
Shares issuable from assumed conversion/vesting of:
- long-term compensation shares/units		1,862,666		1,772,470		1,697,634		1,963,498
- ATM forward sales		68,823		—		1,470		—
Total Common Shares and Units - diluted		389,462,577		387,366,929		389,362,822		387,819,655
Period Ending Amounts Outstanding:
Common Shares (includes Restricted Shares)		376,118,433		374,354,830
Units (includes OP Units and Restricted Units)		12,851,180		12,929,688
Total Shares and Units		388,969,613		387,284,518

Equity Residential
Development and Lease-Up Projects as of June 30, 2022 (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:
9th and W (2)	Washington, DC	92%		312	$	108,027	$	55,921	$	9,993	53%	Q3 2021	Q2 2023	Q3 2023	Q3 2024	– / –
Laguna Clara II	Santa Clara, CA	100%		225		152,621		9,240		—	1%	Q2 2022	Q4 2024	Q1 2025	Q4 2025	– / –
Projects Under Development - Consolidated				537		260,648		65,161		9,993
Projects Completed Not Stabilized:
The Edge (fka 4885 Edgemoor Lane) (2)	Bethesda, MD	100%		154		73,771		73,037		—	100%	Q3 2019	Q3 2021	Q3 2021	Q3 2022	97% / 95%
Aero Apartments	Alameda, CA	90%		200		117,794		113,669		64,631	100%	Q3 2019	Q2 2021	Q2 2021	Q4 2022	90% / 88%
Alcott Apartments (fka West End Tower)	Boston, MA	100%		470		409,749		405,236		—	99%	Q2 2018	Q3 2021	Q4 2021	Q4 2022	90% / 85%
Projects Completed Not Stabilized - Consolidated				824		601,314		591,942		64,631
UNCONSOLIDATED: (3)
Projects Under Development:
Alloy Sunnyside	Denver, CO	80%		209		66,004		24,943		—	29%	Q3 2021	Q2 2023	Q4 2023	Q3 2024	– / –
Alexan Harrison	Harrison, NY	62%		450		198,664		72,692		—	18%	Q3 2021	Q3 2023	Q2 2024	Q4 2025	– / –
Solana Beeler Park	Denver, CO	90%		270		79,956		20,539		—	11%	Q4 2021	Q4 2023	Q2 2024	Q1 2025	– / –
Settler	Fort Worth, TX	75%		362		81,775		17,159		—	11%	Q2 2022	Q2 2024	Q3 2024	Q3 2025	– / –
Projects Under Development - Unconsolidated				1,291		426,399		135,333		—
Total Development Projects - Consolidated				1,361		861,962		657,103		74,624
Total Development Projects - Unconsolidated				1,291		426,399		135,333		—
Total Development Projects				2,652	$	1,288,361	$	792,436	$	74,624

NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS	Total Budgeted Capital Cost		Q2 2022 NOI
Projects Under Development - Consolidated	$	260,648	$	—
Projects Completed Not Stabilized - Consolidated		601,314		4,693
Projects Under Development - Unconsolidated		426,399		—
	$	1,288,361	$	4,693

(1)	All non-wholly owned projects are being partially funded with project-specific construction loans. None of these loans are recourse to the Company. As of June 30, 2022, no draws have been made on the construction loans for the unconsolidated joint venture projects under development.
(2)	The land parcels under these projects are subject to long-term ground leases.
(3)	The Company has six unconsolidated development joint ventures as of June 30, 2022. In addition to the four projects disclosed in “Projects Under Development – Unconsolidated” above, the Company has two additional unconsolidated joint venture projects that have not yet started but are expected to do so in 2022 and eventually deliver approximately 640 apartment units.

Equity Residential Capital Expenditures to Real Estate For the Six Months Ended June 30, 2022 (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		74,057		6,170		80,227
Building Improvements	$	42,373	$	5,247	$	47,620	$	572
Renovation Expenditures (1)		17,555		—		17,555		237
Replacements		17,209		920		18,129		233
Capital Expenditures to Real Estate (2)	$	77,137	$	6,167	$	83,304	$	1,042

(1)	Renovation Expenditures on 714 same store apartment units for the six months ended June 30, 2022 approximated $24,587 per apartment unit renovated.
(2)	See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

Equity Residential Normalized EBITDAre Reconciliations (Amounts in thousands)
	Trailing Twelve Months						2022						2021
	June 30, 2022			March 31, 2022			Q2			Q1			Q4			Q3			Q2
Net income	$	1,314,786		$	1,410,148		$	232,678		$	73,798		$	560,978		$	447,332		$	328,040
Interest expense incurred, net		282,672			277,907			71,889			72,792			69,740			68,251			67,124
Amortization of deferred financing costs		8,814			8,629			2,124			2,077			2,565			2,048			1,939
Amortization of above/below market lease intangibles		4,464			4,327			1,116			1,116			1,116			1,116			979
Depreciation		891,404			868,271			223,806			229,961			222,240			215,397			200,673
Income and other tax expense (benefit)		1,093			1,044			291			282			236			284			242
EBITDA		2,503,233			2,570,326			531,904			380,026			856,875			734,428			598,997
Net (gain) loss on sales of real estate properties		(956,283	)		(1,072,124	)		(107,897	)		102			(484,560	)		(363,928	)		(223,738	)
Net (gain) loss on sales of unconsolidated entities - operating assets		(1,309	)		(1,309	)		—			(9	)		(1,300	)		—			—
EBITDAre		1,545,641			1,496,893			424,007			380,119			371,015			370,500			375,259
Impairment – non-operating assets		16,769			16,769			—			—			16,769			—			—
Write-off of pursuit costs (other expenses)		6,394			6,658			1,052			1,463			2,969			910			1,316
(Income) loss from investments in unconsolidated entities - operations		5,264			4,357			1,168			1,270			1,670			1,156			261
Realized (gain) loss on investment securities (interest and other income)		(2,064	)		(25,631	)		2			(2,066	)		—			—			(23,565	)
Insurance/litigation settlement or reserve income (interest and other income)		(2,300	)		(2,317	)		(311	)		(1,227	)		(20	)		(742	)		(328	)
Insurance/litigation/environmental settlement or reserve expense (other expenses)		7,103			8,103			—			750			4,482			1,871			1,000
Advocacy contributions (other expenses)		993			853			567			175			201			50			427
Other		(346	)		(276	)		(70	)		(69	)		(207	)		—			—
Normalized EBITDAre	$	1,577,454		$	1,505,409		$	426,415		$	380,415		$	396,879		$	373,745		$	354,370
Balance Sheet Items:	June 30, 2022			March 31, 2022
Total debt	$	7,968,043		$	8,160,151
Cash and cash equivalents		(45,010	)		(41,140	)
Mortgage principal reserves/sinking funds		(21,752	)		(20,409	)
Net debt	$	7,901,281		$	8,098,602

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)
	Six Months Ended June 30,									Quarter Ended June 30,
	2022			2021			Variance			2022			2021			Variance
Impairment – non-operating assets	$	—		$	—		$	—		$	—		$	—		$	—
Write-off of pursuit costs (other expenses)		2,515			2,647			(132	)		1,052			1,316			(264	)
Write-off of unamortized deferred financing costs (interest expense)		92			264			(172	)		92			—			92
Write-off of unamortized (premiums)/discounts/OCI (interest expense)		377			—			377			377			—			377
Debt extinguishment and preferred share redemption (gains) losses		469			264			205			469			—			469
Net (gain) loss on sales of land parcels		—			(5	)		5			—			—			—
(Income) loss from investments in unconsolidated entities ─ non-operating assets		734			129			605			310			(597	)		907
Realized (gain) loss on investment securities (interest and other income)		(2,064	)		(23,432	)		21,368			2			(23,565	)		23,567
Non-operating asset (gains) losses		(1,330	)		(23,308	)		21,978			312			(24,162	)		24,474
Insurance/litigation settlement or reserve income (interest and other income)		(1,538	)		(328	)		(1,210	)		(311	)		(328	)		17
Insurance/litigation/environmental settlement or reserve expense (other expenses)		750			3,212			(2,462	)		—			1,000			(1,000	)
Advocacy contributions (other expenses)		742			457			285			567			427			140
Other		(139	)		—			(139	)		(70	)		—			(70	)
Other miscellaneous items		(185	)		3,341			(3,526	)		186			1,099			(913	)
Adjustments from FFO to Normalized FFO	$	1,469		$	(17,056	)	$	18,525		$	2,019		$	(21,747	)	$	23,766

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.
	Q3 2022	Revised Full Year 2022	Previous Full Year 2022
2022 Normalized FFO Guidance (per share diluted)
Expected Normalized FFO Per Share	$0.89 to $0.93	$3.48 to $3.58	$3.40 to $3.50
2022 Same Store Assumptions (includes Residential and Non-Residential)
Physical Occupancy		96.5%	96.5%
Revenue change		10.0% to 11.0%	8.0% to 10.0%
Expense change		2.5% to 3.5%	2.5% to 3.5%
NOI change (1)		13.75% to 14.75%	11.0% to 13.0%
2022 Transaction Assumptions
Consolidated rental acquisitions		$113.0M	$2.0B
Consolidated rental dispositions		$746.0M	$2.0B
Transaction Accretion (Dilution) (2)		–	(25 basis points)
2022 Debt Assumptions
Weighted average debt outstanding (2)		$7.85B to $8.0B	$8.275B to $8.475B
Interest expense, net (on a Normalized FFO basis)		$279.0M to $285.0M	$285.0M to $291.0M
Capitalized interest		$5.5M to $7.5M	$4.5M to $8.5M
2022 Capital Expenditures to Real Estate Assumptions for Same Store Properties (3)
Capital Expenditures to Real Estate for Same Store Properties		$192.5M	$200.0M
Capital Expenditures to Real Estate per Same Store Apartment Unit		$2,600	$2,700
2022 Other Guidance Assumptions
Property management expense		$110.0M to $112.0M	$113.0M to $116.0M
General and administrative expense		$58.0M to $60.0M	$55.0M to $59.0M
Debt offerings		No amounts budgeted	No amounts budgeted
Weighted average Common Shares and Units - Diluted		389.4M	390.9M

(1)	Approximately 25 basis point change in NOI percentage = $0.01 per share change in EPS/FFO per share/Normalized FFO per share.
(2)	The Company has sent a redemption notice on its $500.0 million unsecured notes due in 2023. The redemption is expected to occur in the third quarter of 2022 and will be funded from disposition proceeds. There will be no prepayment penalty, but there will be a non-cash write-off of approximately $3.8 million in unamortized debt discounts and deferred financing costs that will reduce EPS and FFO per share but will not impact Normalized FFO per share.
(3)	During 2022, the Company expects to spend approximately $42.0 million for apartment unit Renovation Expenditures on approximately 1,750 same store apartment units at an average cost of approximately $24,000 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 November 1, 2024. The interest rate on advances under the facility will generally be LIBOR plus a spread (currently 0.775%), or based on bids received from the lending group, and an annual facility fee (currently 0.125%). Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating. In addition, the Company limits its utilization of the facility in order to maintain liquidity to support its $1.0 billion commercial paper program along with certain other obligations. The following table presents the availability on the Company’s unsecured revolving credit facility:

	June 30, 2022
Unsecured revolving credit facility commitment	$	2,500,000
Commercial paper balance outstanding		(185,037	)
Unsecured revolving credit facility balance outstanding		—
Other restricted amounts		(3,463	)
Unsecured revolving credit facility availability	$	2,311,500

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.

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)

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

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

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

EBITDA for Real Estate and Normalized EBITDA for Real Estate:

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

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

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

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

	Six Months Ended June 30, 2022			Quarter Ended June 30, 2022
Net Gain (Loss) on Sales of Real Estate Properties	$	107,795		$	107,897
Accumulated Depreciation Gain		(61,131	)		(61,131	)
Economic Gain (Loss)	$	46,664		$	46,766

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)

FFO and Normalized FFO:

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

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

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

• the impact of any expenses relating to non-operating asset impairment;
• pursuit cost write-offs;
• gains and losses from early debt extinguishment and preferred share redemptions;
• gains and losses from non-operating assets; and
• other miscellaneous items.

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

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

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

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

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 per share and Normalized FFO per share for Consolidated Statements of Funds From Operations and Normalized Funds From Operations.
	Actual June			Actual June			Actual			Actual			Expected		Expected
	YTD 2022			YTD 2021			Q2 2022			Q2 2021			Q3 2022		2022
	Per Share			Per Share			Per Share			Per Share			Per Share		Per Share
EPS – Diluted	$	0.78		$	1.00		$	0.59		$	0.84		$0.77 to $0.81		$1.98 to $2.08
Depreciation expense		1.16			1.03			0.58			0.52			0.55		2.25
Net (gain) loss on sales		(0.28	)		(0.58	)		(0.28	)		(0.58	)		(0.45)		(0.78)
Impairment – operating assets	—				—			—			—			—		—
FFO per share – Diluted		1.66			1.45			0.89			0.78		0.87 to 0.91		3.45 to 3.55
Impairment – non-operating assets		—			—			—			—			—		—
Write-off of pursuit costs		—			—			—			—			—		0.01
Debt extinguishment and preferred share		—			—			—			—			0.01		0.01
redemption (gains) losses
Non-operating asset (gains) losses		—			(0.06	)		—			(0.06	)		—		—
Other miscellaneous items		—			0.01			—			—			0.01		0.01
Normalized FFO per share – Diluted	$	1.66		$	1.40		$	0.89		$	0.72		$0.89 to $0.93		$3.48 to $3.58

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):

	Six Months Ended June 30,						Quarter Ended June 30,
	2022			2021			2022			2021
Operating income	$	459,672		$	512,404		$	309,934		$	376,844
Adjustments:
Property management		57,306			50,585			26,559			24,455
General and administrative		33,661			30,061			16,423			14,678
Depreciation		453,767			400,635			223,806			200,673
Net (gain) loss on sales of real estate		(107,795	)		(223,695	)		(107,897	)		(223,738	)
properties
Total NOI	$	896,611		$	769,990		$	468,825		$	392,912
Rental income:
Same store	$	1,258,233		$	1,136,537		$	645,797		$	568,365
Non-same store/other		82,145			59,124			41,233			29,694
Total rental income		1,340,378			1,195,661			687,030			598,059
Operating expenses:
Same store		408,849			397,762			201,365			195,328
Non-same store/other		34,918			27,909			16,840			9,819
Total operating expenses		443,767			425,671			218,205			205,147
NOI:
Same store		849,384			738,775			444,432			373,037
Non-same store/other		47,227			31,215			24,393			19,875
Total NOI	$	896,611		$	769,990		$	468,825		$	392,912

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)

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 2021 and 2022, plus any properties in lease-up and not stabilized as of January 1, 2021.

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, 2021, 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 2022 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.

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)

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 June 30, 2022. 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 six months ended June 30, 2022 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.