Business Wire | Feb 10, 2021 04:20PM EST

Equity Residential Reports Full Year 2020 Results

Feb. 10, 2021

CHICAGO--(BUSINESS WIRE)--Feb. 10, 2021--Equity Residential (NYSE: EQR) today reported results for the quarter and year ended December 31, 2020 and has posted a Q4 2020 Management Presentation to its website as referenced below.

Fourth Quarter 2020 Results

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



Quarter Ended December 31,

2020 2019 $ Change % Change

Earnings Per Share (EPS) $ 0.68 $ 0.77 $ (0.09 ) (11.7 %)

Funds from Operations (FFO) per $ 0.73 $ 0.86 $ (0.13 ) (15.1 %) share

Normalized FFO per share $ 0.76 $ 0.91 $ (0.15 ) (16.5 %)



Year Ended December 31,

2020

2019

$ Change

% Change

Earnings Per Share (EPS)

$

2.45

$

2.60

$

(0.15

)

(5.8

%)

Funds from Operations (FFO) per share

$

3.21

$

3.39

$

(0.18

)

(5.3

%)

Normalized FFO per share

$

3.26

$

3.49

$

(0.23

)

(6.6

%)

"We are optimistic that 2021 will be a year of recovery for Equity Residential. Operating trends are improving and we expect that our financial results will bottom out in the first half of 2021," said Mark J. Parrell, Equity Residential's President and CEO. "Our affluent, well-employed resident base remains drawn to our nation's great cities and we expect demand to accelerate and pricing to continue to improve as vaccines are widely administered and cities become more active. Many thanks to our colleagues across the country for their hard work in 2020 under very tough conditions."

Highlights

* The Company has seen a 0.9% improvement in same store Physical Occupancy since the end of the third quarter 2020 (94.2% on September 30, 2020 to 95.1% on January 31, 2021). * Pricing Trends stabilized in November 2020 and modestly improved in December 2020 and January 2021 for the first time since the beginning of the pandemic. See the Management Presentation referenced below for details. * The Company collected approximately 97% of its expected Residential revenues in the fourth quarter of 2020. * The Company used the proceeds from the sale described below as well as cash on hand and borrowings under its commercial paper program to satisfy its obligations on its $750.0 million 4.625% unsecured notes due in December 2021, by discharging them pursuant to their indenture. During 2020, the Company paid down nearly $1.0 billion in the aggregate in debt, further strengthening its balance sheet. * The Company sold Vantage Pointe, a 679-unit apartment property located in downtown San Diego, for a sale price of approximately $312.5 million at a Disposition Yield of 4.1%, generating an Unlevered IRR of 8.8% over the Company's ten-year ownership period.

Results Per Share

The changes in EPS for the quarter and year ended December 31, 2020 compared to the same periods of 2019 are due primarily to lower depreciation expense in the current periods as a result of the Company's disposition activity, the various adjustment items listed on page 26 of this release and the items described below.

The per share changes in FFO for both the quarter and year ended December 31, 2020 compared to the same periods of 2019, are due primarily to the various adjustment items listed on page 26 of this release and the items described below.

The per share changes in Normalized FFO are due primarily to:



Year Ended December 31,

2020 2019 $ Change % Change

Earnings Per Share (EPS) $ 2.45 $ 2.60 $ (0.15 ) (5.8 %)

Funds from Operations (FFO) per $ 3.21 $ 3.39 $ (0.18 ) (5.3 %) share

Normalized FFO per share $ 3.26 $ 3.49 $ (0.23 ) (6.6 %)



"We are optimistic that 2021 will be a year of recovery for Equity Residential. Operating trends are improving and we expect that our financial results will bottom out in the first half of 2021," said Mark J. Parrell, Equity Residential's President and CEO. "Our affluent, well-employed resident base remains drawn to our nation's great cities and we expect demand to accelerate and pricing to continue to improve as vaccines are widely administered and cities become more active. Many thanks to our colleagues across the country for their hard work in 2020 under very tough conditions."

Highlights

* The Company has seen a 0.9% improvement in same store Physical Occupancy since the end of the third quarter 2020 (94.2% on September 30, 2020 to 95.1% on January 31, 2021). * Pricing Trends stabilized in November 2020 and modestly improved in December 2020 and January 2021 for the first time since the beginning of the pandemic. See the Management Presentation referenced below for details. * The Company collected approximately 97% of its expected Residential revenues in the fourth quarter of 2020. * The Company used the proceeds from the sale described below as well as cash on hand and borrowings under its commercial paper program to satisfy its obligations on its $750.0 million 4.625% unsecured notes due in December 2021, by discharging them pursuant to their indenture. During 2020, the Company paid down nearly $1.0 billion in the aggregate in debt, further strengthening its balance sheet. * The Company sold Vantage Pointe, a 679-unit apartment property located in downtown San Diego, for a sale price of approximately $312.5 million at a Disposition Yield of 4.1%, generating an Unlevered IRR of 8.8% over the Company's ten-year ownership period.

Results Per Share

The changes in EPS for the quarter and year ended December 31, 2020 compared to the same periods of 2019 are due primarily to lower depreciation expense in the current periods as a result of the Company's disposition activity, the various adjustment items listed on page 26 of this release and the items described below.

The per share changes in FFO for both the quarter and year ended December 31, 2020 compared to the same periods of 2019, are due primarily to the various adjustment items listed on page 26 of this release and the items described below.

The per share changes in Normalized FFO are due primarily to:

Positive/(Negative) Impact

Fourth Quarter Full Year 2020 2020 vs. vs. Fourth Quarter Full Year 2019 2019

Residential same store Net Operating $ (0.15 ) $ (0.22 )Income (NOI)

Non-Residential same store NOI ^(1) (0.01 ) (0.08 )

Lease-Up NOI - 0.01

2020 and 2019 transaction activity impact (0.03 ) (0.06 )on NOI, net

Interest expense, net 0.03 0.11

Other items 0.01 0.01

Net $ (0.15 ) $ (0.23 )

(1)

Non-Residential same store NOI was negatively impacted by a $(0.03) per share non-cash write-off of Non-Residential straight-line lease receivables during the year ended December 31, 2020, primarily in the third quarter of 2020.

The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 28 through 33 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 7, 30 and 31 of this release.

Same Store Results

The Company has provided a breakout of Residential and Non-Residential same store results on page 11 of this release with definitions that can be found on page 32 of this release. Non-Residential operations account for approximately 2.7% of total revenues for the year ended December 31, 2020. The table below reflects same store Residential only results for the fourth quarter 2020 to fourth quarter 2019 comparison, which includes 76,535 apartment units, as well as for the year ended December 31, 2020 to year ended December 31, 2019 comparison, which includes 73,585 apartment units. The Company's Physical Occupancy was 94.2% compared to 96.1% for the fourth quarter of 2020 and 2019, respectively, and 95.1% compared to 96.4% for the full year of 2020 and 2019, respectively.

Non-Residential same store NOI was negatively impacted by a $(0.03) per(1) share non-cash write-off of Non-Residential straight-line lease receivables during the year ended December 31, 2020, primarily in the third quarter of 2020.

The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 28 through 33 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 7, 30 and 31 of this release.

Same Store Results

The Company has provided a breakout of Residential and Non-Residential same store results on page 11 of this release with definitions that can be found on page 32 of this release. Non-Residential operations account for approximately 2.7% of total revenues for the year ended December 31, 2020. The table below reflects same store Residential only results for the fourth quarter 2020 to fourth quarter 2019 comparison, which includes 76,535 apartment units, as well as for the year ended December 31, 2020 to year ended December 31, 2019 comparison, which includes 73,585 apartment units. The Company's Physical Occupancy was 94.2% compared to 96.1% for the fourth quarter of 2020 and 2019, respectively, and 95.1% compared to 96.4% for the full year of 2020 and 2019, respectively.

Fourth Quarter 2020 vs. Full Year 2020 vs. Fourth Quarter 2019 Full Year 2019

Revenues (8.2%) (2.9%)

Expenses 2.8% 2.1%

NOI (12.9%) (5.0%)

The following table reflects the detail of the change in Same Store Residential Revenues, which is presented on a GAAP basis showing Leasing Concessions on a straight-line basis. See pages 12 and 32 for detail and reconciliations of Same Store Residential Revenues on a GAAP basis to Same Store Residential Revenues with Leasing Concessions on a cash basis.

Fourth Quarter 2020 vs. Full Year 2020 vs. Fourth Quarter 2019 Full Year 2019

% Change % Change

Same Store Residential Revenues-

comparable period

Lease rates (4.4 %) (0.4 %)

Leasing Concessions ^(1) (1.2 %) (0.4 %)

Vacancy loss (1.6 %) (1.3 %)

Bad Debt, Net ^(2) (1.6 %) (1.2 %)

Other ^(3) 0.6 % 0.4 %

Same Store Residential Revenues-

current period (8.2 %) (2.9 %)

(1)

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

(2)

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

(3)

Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items.

Residential Same Store Operating Statistics

The following table includes select statistics for Residential Same Store Properties presented on a suburban and urban basis. Statistics for January 2021 are preliminary and Blended Rate is inclusive of Leasing Concessions.

(1) Reflects upfront discounts on both new move-in and renewal leases on a straight-line basis.

(2) Reduction in rental income due to bad debt write-offs and reserves, net of amounts collected on previously written-off or reserved accounts.

(3) Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items.

Residential Same Store Operating Statistics

The following table includes select statistics for Residential Same Store Properties presented on a suburban and urban basis. Statistics for January 2021 are preliminary and Blended Rate is inclusive of Leasing Concessions.

% of Same Percentage of Store Physical Occupancy on: Residents Blended Rate Residential Renewing by Month Revenues

Dec Sep Dec Jan Jan Dec Jan Q4 Dec Jan YTD 2020 30, 31, 31, 2020 2020 2021 2020 2021 2020 2020 2021 (1) 2020 (1)

Suburban 44% 95.9% 95.8% 96.1% 58% 58% 55% (7.0%) (7.3%) (7.3%) (2)

UrbanOther 33% 94.3% 94.6% 95.3% 55% 47% 45% (13.4%) (14.3%) (14.7%) (2)(3)

Urban Core 23% 89.2% 90.2% 91.8% 63% 49% 51% (25.0%) (26.6%) (25.0%) (2)(4)

Total 100% 94.2% 94.4% 95.1% 58% 53% 52% (13.0%) (13.9%) (14.1%)

(1)

January 2021 results are preliminary.

(2)

The Company defines Urban submarkets as those with 3,500 or more households per square mile with the remainder defined as Suburban.

(3)

Includes all other Urban properties excluding Urban Core.

(4)

Includes Urban properties in Manhattan/Brooklyn, Downtown Boston/Cambridge and Downtown San Francisco.

Investment Activity

The Company sold a 679-unit apartment property in downtown San Diego during the fourth quarter of 2020 for a sale price of approximately $312.5 million at a Disposition Yield of 4.1% generating an Unlevered IRR of 8.8%. The Company also sold two land parcels for an aggregate sale price of approximately $55.5 million. The Company did not acquire any assets during the fourth quarter of 2020.

During the full year of 2020, the Company acquired a 158-unit apartment property in suburban Seattle for a purchase price of approximately $48.9 million at an Acquisition Capitalization Rate of 4.7%. Also, during the full year of 2020, the Company sold six properties, consisting of 2,231 apartment units, for an aggregate sales price of approximately $1.07 billion at a weighted average Disposition Yield of 4.5%, generating an Unlevered IRR of 10.2%.

Capital Markets Activity

In December 2020, the Company used the proceeds from the property sale described above as well as cash on hand and borrowings under its commercial paper program to satisfy its obligations on its $750.0 million 4.625% unsecured notes due in December 2021, by discharging them pursuant to their indenture. As a result, the Company incurred approximately $39.1 million in debt extinguishment charges, of which $25.8 million represented a cash charge and the remaining $13.3 million corresponded to write-offs of unamortized debt costs. These charges impacted the Company's 2020 Earnings Per Share and Funds from Operations per share but did not impact the Company's Normalized Funds from Operations per share.

First Quarter 2021 Guidance

The Company has established guidance ranges for the first quarter of 2021 EPS, FFO per share and Normalized FFO per share as listed below:

(1) January 2021 results are preliminary.

(2) The Company defines Urban submarkets as those with 3,500 or more households per square mile with the remainder defined as Suburban.

(3) Includes all other Urban properties excluding Urban Core.

(4) Includes Urban properties in Manhattan/Brooklyn, Downtown Boston/Cambridge and Downtown San Francisco.

Investment Activity

The Company sold a 679-unit apartment property in downtown San Diego during the fourth quarter of 2020 for a sale price of approximately $312.5 million at a Disposition Yield of 4.1% generating an Unlevered IRR of 8.8%. The Company also sold two land parcels for an aggregate sale price of approximately $55.5 million. The Company did not acquire any assets during the fourth quarter of 2020.

During the full year of 2020, the Company acquired a 158-unit apartment property in suburban Seattle for a purchase price of approximately $48.9 million at an Acquisition Capitalization Rate of 4.7%. Also, during the full year of 2020, the Company sold six properties, consisting of 2,231 apartment units, for an aggregate sales price of approximately $1.07 billion at a weighted average Disposition Yield of 4.5%, generating an Unlevered IRR of 10.2%.

Capital Markets Activity

In December 2020, the Company used the proceeds from the property sale described above as well as cash on hand and borrowings under its commercial paper program to satisfy its obligations on its $750.0 million 4.625% unsecured notes due in December 2021, by discharging them pursuant to their indenture. As a result, the Company incurred approximately $39.1 million in debt extinguishment charges, of which $25.8 million represented a cash charge and the remaining $13.3 million corresponded to write-offs of unamortized debt costs. These charges impacted the Company's 2020 Earnings Per Share and Funds from Operations per share but did not impact the Company's Normalized Funds from Operations per share.

First Quarter 2021 Guidance

The Company has established guidance ranges for the first quarter of 2021 EPS, FFO per share and Normalized FFO per share as listed below:

Q1 2021 Guidance

EPS $0.31 to $0.35

FFO per share $0.65 to $0.69

Normalized FFO per share $0.65 to $0.69

The difference between the fourth quarter 2020 actual EPS of $0.68 and the first quarter of 2021 EPS guidance midpoint of $0.33 is due primarily to lower expected property sale gains, lower expected debt extinguishment costs, lower expected land sale gains and the items described below.

The difference between the fourth quarter 2020 actual FFO of $0.73 per share and the first quarter of 2021 FFO guidance midpoint of $0.67 per share is due primarily to lower expected debt extinguishment costs, lower expected land sale gains and the items described below.

The difference between the fourth quarter 2020 actual Normalized FFO of $0.76 per share and the first quarter of 2021 Normalized FFO guidance midpoint of $0.67 per share is due primarily to:

Positive/(Negative) Impact

First Quarter 2021 vs. Fourth Quarter 2020

Same Store NOI $ (0.07 )

2020 transaction activity impact on NOI, net (0.01 )

Interest expense, net 0.03

Corporate overhead ^(1) (0.03 )

Other items (0.01 )

Net $ (0.09 )

(1)

Corporate overhead includes property management and general and administrative expenses.

Full Year 2021 Guidance

The Company has provided guidance for its full year 2021 same store operating performance, EPS, FFO per share and Normalized FFO per share as listed below:

(1) Corporate overhead includes property management and general and administrative expenses.

Full Year 2021 Guidance

The Company has provided guidance for its full year 2021 same store operating performance, EPS, FFO per share and Normalized FFO per share as listed below:

Same Store (includes Residential and Non-Residential):

Physical Occupancy 94.8% to 95.8%

Revenue change (9.0%) to (7.0%)

Expense change 3.0% to 4.0%

NOI change (15.0%) to (12.0%)



EPS $2.55 to $2.75

FFO per share $2.58 to $2.78

Normalized FFO per share $2.60 to $2.80

The difference between the Company's full year 2020 actual EPS of $2.45 and the full year 2021 EPS guidance midpoint of $2.65 is due primarily to higher expected property sale gains, lower expected depreciation expense, lower expected debt extinguishment costs, lower expected land sale gains and the items described below.

The difference between the Company's full year 2020 actual FFO of $3.21 per share and the full year 2021 FFO guidance midpoint of $2.68 per share is due primarily to lower expected debt extinguishment costs, lower expected land sale gains and the items described below.

The difference between the Company's full year 2020 actual Normalized FFO of $3.26 per share and the full year 2021 Normalized FFO guidance midpoint of $2.70 per share is due primarily to:

Positive/(Negative) Impact

Full Year 2021 vs. Full Year 2020

Same Store NOI $ (0.60 )

2021 and 2020 transaction activity impact on NOI, net (0.07 )

Interest expense, net 0.14

Other items, including corporate overhead (0.03 )

Net $ (0.56 )

About Equity Residential

Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract high quality long-term renters. Equity Residential owns or has investments in 304 properties consisting of 77,889 apartment units, located in Boston, New York, Washington, D.C., Seattle, San Francisco, Southern California and Denver. For more information on Equity Residential, please visit our website at www.equityapartments.com.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential's management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, competition and local government regulation. In addition, these forward-looking statements are subject to risks related to the COVID-19 pandemic, many of which are unknown, including the duration and severity of the pandemic, the extent of the adverse health impact on the general population and on our residents, customers and employees in particular, its impact on the employment rate and the economy and the corresponding impact on our residents' and tenants' ability to pay their rent on time or at all, the extent and impact of governmental responses, the rollout and effectiveness of vaccines and the impact of operational changes we have implemented and may implement in response to the pandemic. Other risks and uncertainties are described under the heading "Risk Factors" in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityapartments.com. Many of these uncertainties and risks are difficult to predict and beyond management's control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

A live web cast of the Company's conference call discussing these results will take place tomorrow, Thursday, February 11, 2021 at 10:00 a.m. CT. In connection with the conference call, the Company is also providing a Management Presentation on its website. Please visit the Investor section of the Company's website at www.equityapartments.com for the web cast link and the presentation.

Equity Residential

Consolidated Statements of Operations

(Amounts in thousands except per share data)

(Unaudited)

Year Ended December 31, Quarter Ended December 31,

2020 2019 2020 2019

REVENUES

Rental income $ 2,571,705 $ 2,700,691 $ 613,435 $ 683,895



EXPENSES

Property and 440,998 446,845 107,665 108,348 maintenance

Real estate taxes 381,562 366,139 93,519 95,705 and insurance

Property 93,825 95,344 22,312 22,639 management

General and 48,305 52,757 11,093 11,630 administrative

Depreciation 820,832 831,083 201,829 214,882

Total expenses 1,785,522 1,792,168 436,418 453,204



Net gain (loss)on sales of real 531,807 447,637 179,589 178,237 estate properties



Operating income 1,317,990 1,356,160 356,606 408,928



Interest and 5,935 3,201 1,929 620 other income

Other expenses (17,510 ) (18,177 ) (9,186 ) (6,972 )

Interest:

Expense incurred, (365,073 ) (390,076 ) (116,724 ) (100,300 )net

Amortization ofdeferred (8,939 ) (11,670 ) (2,686 ) (3,006 )financing costs

Income beforeincome and othertaxes, income(loss) from

investments inunconsolidatedentities and netgain (loss)

on sales of land 932,403 939,438 229,939 299,270 parcels

Income and othertax (expense) (852 ) 2,281 (350 ) 3,030 benefit

Income (loss)from investments (3,284 ) 65,945 (839 ) (961 )in unconsolidatedentities

Net gain (loss)on sales of land 34,234 2,044 34,234 (33 )parcels

Net income 962,501 1,009,708 262,984 301,306

Net (income) lossattributable to NoncontrollingInterests:

Operating (34,010 ) (36,034 ) (9,386 ) (10,695 )Partnership

Partially Owned (14,855 ) (3,297 ) (742 ) (847 )Properties

Net incomeattributable to 913,636 970,377 252,856 289,764 controllinginterests

Preferred (3,090 ) (3,090 ) (772 ) (772 )distributions

Net incomeavailable to $ 910,546 $ 967,287 $ 252,084 $ 288,992 Common Shares



Earnings per share - basic:

Net incomeavailable to $ 2.45 $ 2.61 $ 0.68 $ 0.78 Common Shares

Weighted averageCommon Shares 371,791 370,461 371,915 371,155 outstanding



Earnings per share - diluted:

Net incomeavailable to $ 2.45 $ 2.60 $ 0.68 $ 0.77 Common Shares

Weighted averageCommon Shares 385,874 386,333 385,756 387,143 outstanding



Distributionsdeclared per $ 2.41 $ 2.27 $ 0.6025 $ 0.5675 Common Shareoutstanding

Equity Residential

Consolidated Statements of Funds From Operations and Normalized Funds From Operations

(Amounts in thousands except per share data)

(Unaudited)

Year Ended December 31,

Quarter Ended December 31,

2020

2019

2020

2019

Net income

$

962,501

$

1,009,708

$

262,984

$

301,306

Net (income) loss attributable to Noncontrolling Interests - Partially

Owned Properties

(14,855

)

(3,297

)

(742

)

(847

)

Preferred distributions

(3,090

)

(3,090

)

(772

)

(772

)

Net income available to Common Shares and Units

944,556

1,003,321

261,470

299,687

Adjustments:

Depreciation

820,832

831,083

201,829

214,882

Depreciation - Non-real estate additions

(4,564

)

(5,585

)

(1,131

)

(1,350

)

Depreciation - Partially Owned Properties

(3,345

)

(3,599

)

(831

)

(899

)

Depreciation - Unconsolidated Properties

2,454

2,997

616

612

Net (gain) loss on sales of unconsolidated entities - operating

assets

(1,636

)

(69,522

)

(636

)

-

Net (gain) loss on sales of real estate properties

(531,807

)

(447,637

)

(179,589

)

(178,237

)

Noncontrolling Interests share of gain (loss) on sales

of real estate properties

11,655

-

-

-

FFO available to Common Shares and Units

1,238,145

1,311,058

281,728

334,695

Adjustments (see note for additional detail):

Impairment - non-operating assets

-

-

-

-

Write-off of pursuit costs

6,869

5,529

2,005

1,431

Debt extinguishment and preferred share redemption (gains)

losses

39,292

23,991

39,255

12,184

Non-operating asset (gains) losses

(32,590

)

(940

)

(33,612

)

260

Other miscellaneous items

4,652

8,430

5,166

1,891

Normalized FFO available to Common Shares and Units

$

1,256,368

$

1,348,068

$

294,542

$

350,461

FFO

$

1,241,235

$

1,314,148

$

282,500

$

335,467

Preferred distributions

(3,090

)

(3,090

)

(772

)

(772

)

FFO available to Common Shares and Units

$

1,238,145

$

1,311,058

$

281,728

$

334,695

FFO per share and Unit - basic

$

3.22

$

3.42

$

0.73

$

0.87

FFO per share and Unit - diluted

$

3.21

$

3.39

$

0.73

$

0.86

Normalized FFO

$

1,259,458

$

1,351,158

$

295,314

$

351,233

Preferred distributions

(3,090

)

(3,090

)

(772

)

(772

)

Normalized FFO available to Common Shares and Units

$

1,256,368

$

1,348,068

$

294,542

$

350,461

Normalized FFO per share and Unit - basic

$

3.27

$

3.52

$

0.77

$

0.91

Normalized FFO per share and Unit - diluted

$

3.26

$

3.49

$

0.76

$

0.91

Weighted average Common Shares and Units outstanding - basic

384,794

383,368

384,899

384,039

Weighted average Common Shares and Units outstanding - diluted

385,874

386,333

385,756

387,143

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

Equity Residential

Consolidated Statements of Funds From Operations and Normalized Funds FromOperations

(Amounts in thousands except per share data)

(Unaudited)

Year Ended December 31, Quarter Ended December 31,

2020 2019 2020 2019

Net income $ 962,501 $ 1,009,708 $ 262,984 $ 301,306

Net (income) lossattributable toNoncontrollingInterests -Partially

Owned Properties (14,855 ) (3,297 ) (742 ) (847 )

Preferred (3,090 ) (3,090 ) (772 ) (772 )distributions

Net incomeavailable to 944,556 1,003,321 261,470 299,687 Common Shares andUnits



Adjustments:

Depreciation 820,832 831,083 201,829 214,882

Depreciation -Non-real estate (4,564 ) (5,585 ) (1,131 ) (1,350 )additions

Depreciation -Partially Owned (3,345 ) (3,599 ) (831 ) (899 )Properties

Depreciation -Unconsolidated 2,454 2,997 616 612 Properties

Net (gain) losson sales ofunconsolidatedentities -operating

assets (1,636 ) (69,522 ) (636 ) -

Net (gain) losson sales of real (531,807 ) (447,637 ) (179,589 ) (178,237 )estate properties

NoncontrollingInterests shareof gain (loss) onsales

of real estate 11,655 - - - properties

FFO available toCommon Shares and 1,238,145 1,311,058 281,728 334,695 Units



Adjustments (seenote for additionaldetail):

Impairment -non-operating - - - - assets

Write-off of 6,869 5,529 2,005 1,431 pursuit costs

Debtextinguishmentand preferredshare redemption(gains)

losses 39,292 23,991 39,255 12,184

Non-operatingasset (gains) (32,590 ) (940 ) (33,612 ) 260 losses

Othermiscellaneous 4,652 8,430 5,166 1,891 items

Normalized FFOavailable to $ 1,256,368 $ 1,348,068 $ 294,542 $ 350,461 Common Shares andUnits



FFO $ 1,241,235 $ 1,314,148 $ 282,500 $ 335,467

Preferred (3,090 ) (3,090 ) (772 ) (772 )distributions

FFO available toCommon Shares and $ 1,238,145 $ 1,311,058 $ 281,728 $ 334,695 Units

FFO per share and $ 3.22 $ 3.42 $ 0.73 $ 0.87 Unit - basic

FFO per share and $ 3.21 $ 3.39 $ 0.73 $ 0.86 Unit - diluted



Normalized FFO $ 1,259,458 $ 1,351,158 $ 295,314 $ 351,233

Preferred (3,090 ) (3,090 ) (772 ) (772 )distributions

Normalized FFOavailable to $ 1,256,368 $ 1,348,068 $ 294,542 $ 350,461 Common Shares andUnits

Normalized FFOper share and $ 3.27 $ 3.52 $ 0.77 $ 0.91 Unit - basic

Normalized FFOper share and $ 3.26 $ 3.49 $ 0.76 $ 0.91 Unit - diluted



Weighted averageCommon Shares and 384,794 383,368 384,899 384,039 Units outstanding- basic

Weighted averageCommon Shares and 385,874 386,333 385,756 387,143 Units outstanding- diluted

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

Equity Residential

Consolidated Balance Sheets

(Amounts in thousands except for share amounts)

(Unaudited)

December 31, December 31,

2020 2019

ASSETS

Land $ 5,785,367 $ 5,936,188

Depreciable property 20,920,654 21,319,101

Projects under development 411,134 181,630

Land held for development 86,170 96,688

Investment in real estate 27,203,325 27,533,607

Accumulated depreciation (7,859,657 ) (7,276,786 )

Investment in real estate, net 19,343,668 20,256,821

Investments in unconsolidated entities 52,782 52,238

Cash and cash equivalents 42,591 45,753

Restricted deposits 57,137 71,246

Right-of-use assets 499,287 512,774

Other assets 291,426 233,937

Total assets $ 20,286,891 $ 21,172,769



LIABILITIES AND EQUITY

Liabilities:

Mortgage notes payable, net $ 2,293,890 $ 1,941,610

Notes, net 5,335,536 6,077,513

Line of credit and commercial paper 414,830 1,017,833

Accounts payable and accrued expenses 107,366 94,350

Accrued interest payable 65,896 66,852

Lease liabilities 329,130 331,334

Other liabilities 345,064 346,963

Security deposits 60,480 70,062

Distributions payable 232,262 218,326

Total liabilities 9,184,454 10,164,843



Commitments and contingencies



Redeemable Noncontrolling Interests - Operating 338,951 463,400 Partnership

Equity:

Shareholders' equity:

Preferred Shares of beneficial interest, $0.01par value;

100,000,000 shares authorized; 745,600 sharesissued and

outstanding as of December 31, 2020 and 37,280 37,280 December 31, 2019

Common Shares of beneficial interest, $0.01 parvalue;

1,000,000,000 shares authorized; 372,302,000shares issued

and outstanding as of December 31, 2020 and371,670,884

shares issued and outstanding as of December 3,723 3,717 31, 2019

Paid in capital 9,128,599 8,965,577

Retained earnings 1,399,715 1,386,495

Accumulated other comprehensive income (loss) (43,666 ) (77,563 )

Total shareholders' equity 10,525,651 10,315,506

Noncontrolling Interests:

Operating Partnership 233,162 227,837

Partially Owned Properties 4,673 1,183

Total Noncontrolling Interests 237,835 229,020

Total equity 10,763,486 10,544,526

Total liabilities and equity $ 20,286,891 $ 21,172,769

Equity Residential

Portfolio Summary

As of December 31, 2020

% of Stabilized

Average

Apartment

Budgeted

Rental

Markets/Metro Areas

Properties

Units

NOI

Rate

Los Angeles

72

16,603

21.5

%

$

2,458

Orange County

13

4,028

5.4

%

2,222

San Diego

11

2,706

3.8

%

2,373

Subtotal - Southern California

96

23,337

30.7

%

2,407

San Francisco

48

12,707

18.3

%

3,053

Washington DC

47

14,731

17.2

%

2,387

Seattle

46

9,454

11.4

%

2,349

New York

37

9,606

11.3

%

3,617

Boston

25

6,430

9.4

%

2,958

Denver

5

1,624

1.7

%

2,003

Total

304

77,889

100.0

%

$

2,680

Equity Residential

Portfolio Summary

As of December 31, 2020

% of Average Stabilized

Apartment Budgeted Rental

Markets/Metro Areas Properties Units NOI Rate



Los Angeles 72 16,603 21.5 % $ 2,458

Orange County 13 4,028 5.4 % 2,222

San Diego 11 2,706 3.8 % 2,373

Subtotal - Southern 96 23,337 30.7 % 2,407 California



San Francisco 48 12,707 18.3 % 3,053

Washington DC 47 14,731 17.2 % 2,387

Seattle 46 9,454 11.4 % 2,349

New York 37 9,606 11.3 % 3,617

Boston 25 6,430 9.4 % 2,958

Denver 5 1,624 1.7 % 2,003



Total 304 77,889 100.0 % $ 2,680

Properties

Apartment Units

Wholly Owned Properties

287

74,328

Master-Leased Properties - Consolidated

1

162

Partially Owned Properties - Consolidated

16

3,399

304

77,889

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

Properties Apartment Units



Wholly Owned Properties 287 74,328

Master-Leased Properties - Consolidated 1 162

Partially Owned Properties - Consolidated 16 3,399



304 77,889

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

Equity Residential

Portfolio Rollforward Q4 2020

($ in thousands)

Properties Apartment Sales Disposition Units Price Yield



9/30/ 305 78,568 2020



Dispositions:

Consolidated:

Rental (1 ) (679 ) $ (312,500 ) (4.1 %)Properties

Land Parcels - - $ (55,510 )



12/31/ 304 77,889 2020

Portfolio Rollforward 2020

($ in thousands)

Properties

Apartment Units

Purchase Price

Acquisition Cap Rate

12/31/2019

309

79,962

Acquisitions:

Consolidated Rental Properties - Not Stabilized (A)

1

158

$

48,860

4.7

%

Sales Price

Disposition Yield

Dispositions:

Consolidated:

Rental Properties

(6

)

(2,231

)

$

(1,066,861

)

(4.5

%)

Land Parcels

-

-

$

(55,510

)

12/31/2020

304

77,889

Portfolio Rollforward 2020

($ in thousands)

Properties Apartment Purchase Acquisition Units Price Cap Rate



12/ 31/ 309 79,962 2019



Acquisitions:

Consolidated RentalProperties - Not 1 158 $ 48,860 4.7 %Stabilized (A)



Sales Price Disposition Yield



Dispositions:

Consolidated:

Rental (6 ) (2,231 ) $ (1,066,861 ) (4.5 %)Properties

Land Parcels - - $ (55,510 )



12/ 31/ 304 77,889 2020

(A)

The Company acquired one property in the Seattle market in the third quarter of 2020 that is in lease-up and is expected to stabilize in its second year of ownership at an Acquisition Cap Rate of 4.7%.

The Company acquired one property in the Seattle market in the third(A) quarter of 2020 that is in lease-up and is expected to stabilize in its second year of ownership at an Acquisition Cap Rate of 4.7%.

Equity Residential

Fourth Quarter 2020 vs. Fourth Quarter 2019

Same Store Results/Statistics Including 76,535 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

Fourth Quarter 2020

Fourth Quarter 2019

Residential

% Change

Non- Residential

% Change

Total

% Change

Residential

Non- Residential

Total

Revenues

$

580,328

(1)

(8.2%)

$

19,926

(2)

(15.8%)

$

600,254

(8.5%)

Revenues

$

632,229

$

23,658

$

655,887

Expenses

$

192,948

2.8%

$

5,541

(0.6%)

$

198,489

2.7%

Expenses

$

187,637

$

5,573

$

193,210

NOI

$

387,380

(12.9%)

$

14,385

(20.5%)

$

401,765

(13.2%)

NOI

$

444,592

$

18,085

$

462,677

Average Rental Rate

$

2,685

(6.4%)

Average Rental Rate

$

2,868

Physical Occupancy

94.2

%

(1.9%)

Physical Occupancy

96.1

%

Turnover

13.4

%

2.7%

Turnover

10.7

%

Equity Residential

Fourth Quarter 2020 vs. Fourth Quarter 2019

Same Store Results/Statistics Including 76,535 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

Fourth Quarter 2020 Fourth Quarter 2019

Residential % Non- % Total % Residential Non- Total Change Residential Change Change Residential



Revenues $ 580,328 (1) (8.2%) $ 19,926 (15.8%) $ 600,254 (8.5%) Revenues $ 632,229 $ 23,658 $ 655,887 (2)

Expenses $ 192,948 2.8% $ 5,541 (0.6%) $ 198,489 2.7% Expenses $ 187,637 $ 5,573 $ 193,210

NOI $ 387,380 (12.9%) $ 14,385 (20.5%) $ 401,765 (13.2%) NOI $ 444,592 $ 18,085 $ 462,677



Average $ 2,685 (6.4%) Average $ 2,868 Rental Rate Rental Rate

Physical 94.2 % (1.9%) Physical 96.1 % Occupancy Occupancy

Turnover 13.4 % 2.7% Turnover 10.7 %

Fourth Quarter 2020 vs. Third Quarter 2020

Same Store Results/Statistics Including 77,351 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

Fourth Quarter 2020

Third Quarter 2020

Residential

% Change

Non- Residential

% Change

Total

% Change

Residential

Non- Residential

Total

Revenues

$

585,992

(1)

(3.7%)

$

19,982

(2)

223.8%

$

605,974

(1.5%)

Revenues

$

608,737

$

6,171

$

614,908

Expenses

$

194,467

(3.4%)

$

5,558

(3.0%)

$

200,025

(3.3%)

Expenses

$

201,218

$

5,732

$

206,950

NOI

$

391,525

(3.9%)

$

14,424

3185.6%

$

405,949

(0.5%)

NOI

$

407,519

$

439

$

407,958

Average Rental Rate

$

2,683

(3.2%)

Average Rental Rate

$

2,771

Physical Occupancy

94.2

%

(0.5%)

Physical Occupancy

94.7

%

Turnover

13.4

%

(4.4%)

Turnover

17.8

%

Fourth Quarter 2020 vs. Third Quarter 2020

Same Store Results/Statistics Including 77,351 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

Fourth Quarter 2020 Third Quarter 2020

Residential % Non- % Total % Residential Non- Total Change Residential Change Change Residential



(2)Revenues $ 585,992 (3.7%) $ 19,982 223.8% $ 605,974 (1.5%) Revenues $ 608,737 $ 6,171 $ 614,908 (1)

Expenses $ 194,467 (3.4%) $ 5,558 (3.0%) $ 200,025 (3.3%) Expenses $ 201,218 $ 5,732 $ 206,950

NOI $ 391,525 (3.9%) $ 14,424 3185.6% $ 405,949 (0.5%) NOI $ 407,519 $ 439 $ 407,958



Average $ 2,683 (3.2%) Average $ 2,771 Rental Rate Rental Rate

Physical 94.2 % (0.5%) Physical 94.7 % Occupancy Occupancy

Turnover 13.4 % (4.4%) Turnover 17.8 %

2020 vs. 2019

Same Store Results/Statistics Including 73,585 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

2020

2019

Residential

% Change

Non-

Residential

% Change

Total

% Change

Residential

Non-

Residential

Total

Revenues

$

2,356,344

(1)

(2.9%)

$

62,674

(2)

(33.2%)

$

2,419,018

(4.0%)

Revenues

$

2,425,471

$

93,764

$

2,519,235

Expenses

$

751,504

2.1%

$

21,975

3.5%

$

773,479

2.1%

Expenses

$

736,279

$

21,223

$

757,502

NOI

$

1,604,840

(5.0%)

$

40,699

(43.9%)

$

1,645,539

(6.6%)

NOI

$

1,689,192

$

72,541

$

1,761,733

Average Rental Rate

$

2,809

(1.5%)

Average Rental Rate

$

2,852

Physical Occupancy

95.1

%

(1.3%)

Physical Occupancy

96.4

%

Turnover

52.3

%

2.5%

Turnover

49.8

%

2020 vs. 2019

Same Store Results/Statistics Including 73,585 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)



2020 2019

% Non- % % Non- Residential Change Change Total Change Residential Total Residential Residential



Revenues $ 2,356,344 (1) (2.9%) $ 62,674 (2) (33.2%) $ 2,419,018 (4.0%) Revenues $ 2,425,471 $ 93,764 $ 2,519,235

Expenses $ 751,504 2.1% $ 21,975 3.5% $ 773,479 2.1% Expenses $ 736,279 $ 21,223 $ 757,502

NOI $ 1,604,840 (5.0%) $ 40,699 (43.9%) $ 1,645,539 (6.6%) NOI $ 1,689,192 $ 72,541 $ 1,761,733



Average $ 2,809 (1.5%) Average $ 2,852 Rental Rate Rental Rate

Physical 95.1 % (1.3%) Physical 96.4 % Occupancy Occupancy

Turnover 52.3 % 2.5% Turnover 49.8 %

(1)

See page 12 for Same Store Residential Revenues with Leasing Concessions reflected on a cash basis. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.

(2)

Changes in same store Non-Residential revenues for the periods presented are driven by the following:

? Fourth Quarter 2020 vs. Fourth Quarter 2019 - Primarily deferral/abatement of rents, higher bad debt and lower parking income.

? Fourth Quarter 2020 vs. Third Quarter 2020 - Primarily a $10.6 million non-cash write-off of Non-Residential straight-line lease receivables in the third quarter of 2020.

? 2020 vs. 2019 - Primarily deferral/abatement of rents, higher bad debt, lower parking income and the non-cash write-off of $12.9 million of Non-Residential straight-line lease receivables predominately in the third quarter of 2020.

See page 12 for Same Store Residential Revenues with Leasing Concessions(1) reflected on a cash basis. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.



(2) Changes in same store Non-Residential revenues for the periods presented are driven by the following:

? Fourth Quarter 2020 vs. Fourth Quarter 2019 - Primarily deferral/ abatement of rents, higher bad debt and lower parking income.

? Fourth Quarter 2020 vs. Third Quarter 2020 - Primarily a $10.6 million non-cash write-off of Non-Residential straight-line lease receivables in the third quarter of 2020.

? 2020 vs. 2019 - Primarily deferral/abatement of rents, higher bad debt, lower parking income and the non-cash write-off of $12.9 million of Non-Residential straight-line lease receivables predominately in the third quarter of 2020.

Equity Residential

Same Store Residential Revenues - GAAP to Cash Basis (1)

$ in thousands

Fourth Quarter 2020 vs. Fourth Quarter 2019

Fourth Quarter 2020 vs. Third Quarter 2020

2020 vs. 2019

76,535 Same Store Apartment Units

77,351 Same Store Apartment Units

73,585 Same Store Apartment Units

Q4 2020

Q4 2019

Q4 2020

Q3 2020

2020

2019

Same Store Residential Revenues (GAAP Basis)

$

580,328

$

632,229

$

585,992

$

608,737

$

2,356,344

$

2,425,471

Leasing Concessions amortized

8,091

819

8,335

4,322

13,435

3,189

Leasing Concessions granted

(16,444

)

(1,014

)

(16,793

)

(12,070

)

(31,077

)

(2,034

)

Same Store Residential Revenues with Leasing

Concessions on a cash basis

$

571,975

$

632,034

$

577,534

$

600,989

$

2,338,702

$

2,426,626

% change - GAAP revenue

(8.2

%)

(3.7

%)

(2.9

%)

% change - cash revenue

(9.5

%)

(3.9

%)

(3.6

%)

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

Equity Residential

Same Store Residential Revenues - GAAP to Cash Basis (1)

$ in thousands

Fourth Quarter 2020 vs. Fourth Quarter 2020 vs. 2020 vs. 2019 Fourth Quarter 2019 Third Quarter 2020

76,535 Same Store 77,351 Same Store 73,585 Same Store Apartment Apartment Units Apartment Units Units

Q4 2020 Q4 2019 Q4 2020 Q3 2020 2020 2019

Same StoreResidentialRevenues $ 580,328 $ 632,229 $ 585,992 $ 608,737 $ 2,356,344 $ 2,425,471 (GAAPBasis)

LeasingConcessions 8,091 819 8,335 4,322 13,435 3,189 amortized

LeasingConcessions (16,444 ) (1,014 ) (16,793 ) (12,070 ) (31,077 ) (2,034 )granted

Same StoreResidentialRevenueswithLeasing

Concessionson a cash $ 571,975 $ 632,034 $ 577,534 $ 600,989 $ 2,338,702 $ 2,426,626 basis



% change -GAAP (8.2 %) (3.7 %) (2.9 %) revenue



% change -cash (9.5 %) (3.9 %) (3.6 %) revenue

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

Same Store Resident/Tenant Accounts Receivable Balances

Including 73,585 Same Store Apartment Units

$ in thousands

Residential

Non-Residential

Balance Sheet (Other assets):

December 31, 2020

September 30, 2020

December 31, 2019

December 31, 2020

September 30, 2020

December 31, 2019

Resident/tenant accounts receivable balances

$

29,618

$

23,506

$

4,054

$

7,113

$

7,533

$

1,700

Allowance for doubtful accounts

(22,705

)

(14,995

)

(1,082

)

(6,323

)

(6,342

)

(1,349

)

Net receivable balances

$

6,913

(1)

$

8,511

$

2,972

$

790

$

1,191

$

351

Straight-line receivable balances

$

18,672

(2)

$

10,401

$

1,029

$

13,304

$

13,681

$

26,153

Same Store Resident/Tenant Accounts Receivable Balances

Including 73,585 Same Store Apartment Units

$ in thousands

Residential Non-Residential

Balance Sheet December September December December September December(Other 31, 2020 30, 2020 31, 2019 31, 2020 30, 2020 31, 2019 assets):

Resident/tenantaccounts $ 29,618 $ 23,506 $ 4,054 $ 7,113 $ 7,533 $ 1,700 receivablebalances

Allowance fordoubtful (22,705 ) (14,995 ) (1,082 ) (6,323 ) (6,342 ) (1,349 )accounts

Netreceivable $ 6,913 (1) $ 8,511 $ 2,972 $ 790 $ 1,191 $ 351 balances



Straight-linereceivable $ 18,672 (2) $ 10,401 $ 1,029 $ 13,304 $ 13,681 $ 26,153 balances

(1)

The Company held same store Residential security deposits approximating 29.2% of the net receivable balance at December 31, 2020.

(2)

Total same store Residential Leasing Concessions granted in 2020 were approximately $31.1 million. The straight-line receivable balance of $18.7 million reflects Residential Leasing Concessions that the Company expects will be recognized as a reduction of rental revenues in 2021.

(1) The Company held same store Residential security deposits approximating 29.2% of the net receivable balance at December 31, 2020.



(2) Total same store Residential Leasing Concessions granted in 2020 were approximately $31.1 million. The straight-line receivable balance of $18.7 million reflects Residential Leasing Concessions that the Company expects will be recognized as a reduction of rental revenues in 2021.

Same Store Residential Bad Debt

Including 73,585 Same Store Apartment Units

$ in thousands

Income Statement (Rental income):

Q4 2020

2020

2019

Bad Debt, Net

$

12,550

$

39,391

$

10,660

% of Same Store Residential Revenues

2.2

%

1.7

%

0.4

%

Same Store Residential Bad Debt

Including 73,585 Same Store Apartment Units

$ in thousands



Income Statement (Rental income): Q4 2020 2020 2019

Bad Debt, Net $ 12,550 $ 39,391 $ 10,660

% of Same Store Residential Revenues 2.2 % 1.7 % 0.4 %

Equity Residential

Fourth Quarter 2020 vs. Fourth Quarter 2019

Same Store Residential Results/Statistics by Market

Increase (Decrease) from Prior Year's Quarter

Markets/Metro Areas

Apartment Units

Q4 2020 % of Actual NOI

Q4 2020 Average Rental Rate

Q4 2020 Weighted Average Physical Occupancy %

Q4 2020 Turnover

Revenues

Expenses

NOI

Average Rental Rate

Physical Occupancy

Turnover

Los Angeles

16,603

20.4

%

$

2,458

95.6

%

13.8

%

(7.1

%)

2.0

%

(10.9

%)

(6.8

%)

(0.3

%)

1.7

%

Orange County

4,028

5.2

%

2,222

96.8

%

10.7

%

(2.2

%)

(0.4

%)

(2.7

%)

(2.3

%)

0.2

%

0.3

%

San Diego

2,706

3.7

%

2,373

97.3

%

11.4

%

0.5

%

3.6

%

(0.5

%)

(0.3

%)

0.8

%

(1.2

%)

Subtotal - Southern California

23,337

29.3

%

2,407

96.0

%

13.0

%

(5.5

%)

1.8

%

(8.3

%)

(5.4

%)

(0.1

%)

1.2

%

San Francisco

12,707

19.9

%

3,053

92.7

%

15.7

%

(11.4

%)

3.4

%

(16.2

%)

(8.9

%)

(2.6

%)

3.5

%

Washington DC

14,299

17.4

%

2,386

95.4

%

12.6

%

(3.5

%)

0.5

%

(5.2

%)

(2.5

%)

(1.0

%)

3.0

%

New York

9,606

11.6

%

3,617

89.8

%

11.8

%

(14.6

%)

5.7

%

(29.2

%)

(8.2

%)

(6.6

%)

4.5

%

Seattle

8,616

10.6

%

2,360

94.5

%

13.8

%

(5.9

%)

1.2

%

(8.5

%)

(4.0

%)

(1.9

%)

2.7

%

Boston

6,346

9.4

%

2,961

93.9

%

13.0

%

(9.1

%)

3.1

%

(13.7

%)

(7.0

%)

(2.2

%)

3.6

%

Denver

1,624

1.8

%

2,003

95.1

%

15.9

%

(1.8

%)

(0.1

%)

(2.4

%)

(2.7

%)

0.6

%

0.3

%

Total

76,535

100.0

%

$

2,685

94.2

%

13.4

%

(8.2

%)

(1)

2.8

%

(12.9

%)

(6.4

%)

(1.9

%)

2.7

%

Equity Residential

Fourth Quarter 2020 vs. Fourth Quarter 2019

Same Store Residential Results/Statistics by Market

Increase (Decrease) from Prior Year's Quarter

Q4 2020 Q4 2020 Q4 2020 Weighted AverageMarkets/Metro Areas Apartment % of Average Average Q4 2020 Revenues Expenses NOI Rental Physical Turnover Units Actual Rental Physical Turnover Rate Occupancy NOI Rate Occupancy %



Los Angeles 16,603 20.4 % $ 2,458 95.6 % 13.8 % (7.1 %) 2.0 % (10.9 %) (6.8 %) (0.3 %) 1.7 %

Orange County 4,028 5.2 % 2,222 96.8 % 10.7 % (2.2 %) (0.4 %) (2.7 %) (2.3 %) 0.2 % 0.3 %

San Diego 2,706 3.7 % 2,373 97.3 % 11.4 % 0.5 % 3.6 % (0.5 %) (0.3 %) 0.8 % (1.2 %)

Subtotal - Southern 23,337 29.3 % 2,407 96.0 % 13.0 % (5.5 %) 1.8 % (8.3 %) (5.4 %) (0.1 %) 1.2 %California



San Francisco 12,707 19.9 % 3,053 92.7 % 15.7 % (11.4 %) 3.4 % (16.2 %) (8.9 %) (2.6 %) 3.5 %

Washington DC 14,299 17.4 % 2,386 95.4 % 12.6 % (3.5 %) 0.5 % (5.2 %) (2.5 %) (1.0 %) 3.0 %

New York 9,606 11.6 % 3,617 89.8 % 11.8 % (14.6 %) 5.7 % (29.2 %) (8.2 %) (6.6 %) 4.5 %

Seattle 8,616 10.6 % 2,360 94.5 % 13.8 % (5.9 %) 1.2 % (8.5 %) (4.0 %) (1.9 %) 2.7 %

Boston 6,346 9.4 % 2,961 93.9 % 13.0 % (9.1 %) 3.1 % (13.7 %) (7.0 %) (2.2 %) 3.6 %

Denver 1,624 1.8 % 2,003 95.1 % 15.9 % (1.8 %) (0.1 %) (2.4 %) (2.7 %) 0.6 % 0.3 %



Total 76,535 100.0 % $ 2,685 94.2 % 13.4 % (8.2 %) (1) 2.8 % (12.9 %) (6.4 %) (1.9 %) 2.7 %

(1)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 9.5% in the fourth quarter of 2020 compared to the fourth quarter of 2019. See page 12 for additional detail and reconciliations.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 97.3% of total revenues for the year ended December 31, 2020.

With Leasing Concessions reflected on a cash basis, Same Store Residential(1) Revenues decreased 9.5% in the fourth quarter of 2020 compared to the fourth quarter of 2019. See page 12 for additional detail and reconciliations.

Note: The above table reflects Residential same store results only. Residentialoperations account for approximately 97.3% of total revenues for the year endedDecember 31, 2020.

Equity Residential

Fourth Quarter 2020 vs. Third Quarter 2020

Same Store Residential Results/Statistics by Market

Increase (Decrease) from Prior Quarter

Markets/Metro Areas

Apartment Units

Q4 2020 % of Actual NOI

Q4 2020 Average Rental Rate

Q4 2020 Weighted Average Physical Occupancy %

Q4 2020 Turnover

Revenues

Expenses

NOI

Average Rental Rate

Physical Occupancy

Turnover

Los Angeles

16,603

20.2

%

$

2,458

95.6

%

13.8

%

(1.5

%)

(1.3

%)

(1.6

%)

(1.2

%)

(0.3

%)

(1.6

%)

Orange County

4,028

5.2

%

2,222

96.8

%

10.7

%

(1.0

%)

(10.6

%)

2.2

%

(0.9

%)

0.0

%

(5.2

%)

San Diego

2,706

3.6

%

2,373

97.3

%

11.4

%

0.5

%

(0.1

%)

0.7

%

0.3

%

0.2

%

(4.6

%)

Subtotal - Southern California

23,337

29.0

%

2,407

96.0

%

13.0

%

(1.2

%)

(2.4

%)

(0.7

%)

(1.0

%)

(0.2

%)

(2.6

%)

San Francisco

12,707

19.7

%

3,053

92.7

%

15.7

%

(6.4

%)

(2.7

%)

(7.8

%)

(4.6

%)

(1.7

%)

(2.9

%)

Washington DC

14,569

17.6

%

2,387

95.4

%

12.8

%

(2.7

%)

(7.0

%)

(0.7

%)

(2.5

%)

(0.2

%)

(4.8

%)

New York

9,606

11.5

%

3,617

89.8

%

11.8

%

(6.5

%)

1.0

%

(13.4

%)

(4.9

%)

(1.5

%)

(8.5

%)

Seattle

9,078

11.1

%

2,363

94.5

%

14.1

%

(3.2

%)

(10.1

%)

(0.1

%)

(3.1

%)

(0.1

%)

(3.4

%)

Boston

6,430

9.4

%

2,958

93.9

%

12.9

%

(3.5

%)

(3.5

%)

(3.5

%)

(3.9

%)

0.4

%

(7.8

%)

Denver

1,624

1.7

%

2,003

95.1

%

15.9

%

(1.8

%)

(12.9

%)

3.1

%

(1.9

%)

0.0

%

(6.8

%)

Total

77,351

100.0

%

$

2,683

94.2

%

13.4

%

(3.7

%)

(1)

(3.4

%)

(3.9

%)

(3.2

%)

(0.5

%)

(4.4

%)

Equity Residential

Fourth Quarter 2020 vs. Third Quarter 2020

Same Store Residential Results/Statistics by Market

Increase (Decrease) from Prior Quarter

Q4 2020 Q4 2020 Q4 2020 Weighted AverageMarkets/Metro Areas Apartment % of Average Average Q4 2020 Revenues Expenses NOI Rental Physical Turnover Units Actual Rental Physical Turnover Rate Occupancy NOI Rate Occupancy %



Los Angeles 16,603 20.2 % $ 2,458 95.6 % 13.8 % (1.5 %) (1.3 %) (1.6 %) (1.2 %) (0.3 %) (1.6 %)

Orange County 4,028 5.2 % 2,222 96.8 % 10.7 % (1.0 %) (10.6 %) 2.2 % (0.9 %) 0.0 % (5.2 %)

San Diego 2,706 3.6 % 2,373 97.3 % 11.4 % 0.5 % (0.1 %) 0.7 % 0.3 % 0.2 % (4.6 %)

Subtotal - Southern 23,337 29.0 % 2,407 96.0 % 13.0 % (1.2 %) (2.4 %) (0.7 %) (1.0 %) (0.2 %) (2.6 %)California



San Francisco 12,707 19.7 % 3,053 92.7 % 15.7 % (6.4 %) (2.7 %) (7.8 %) (4.6 %) (1.7 %) (2.9 %)

Washington DC 14,569 17.6 % 2,387 95.4 % 12.8 % (2.7 %) (7.0 %) (0.7 %) (2.5 %) (0.2 %) (4.8 %)

New York 9,606 11.5 % 3,617 89.8 % 11.8 % (6.5 %) 1.0 % (13.4 %) (4.9 %) (1.5 %) (8.5 %)

Seattle 9,078 11.1 % 2,363 94.5 % 14.1 % (3.2 %) (10.1 %) (0.1 %) (3.1 %) (0.1 %) (3.4 %)

Boston 6,430 9.4 % 2,958 93.9 % 12.9 % (3.5 %) (3.5 %) (3.5 %) (3.9 %) 0.4 % (7.8 %)

Denver 1,624 1.7 % 2,003 95.1 % 15.9 % (1.8 %) (12.9 %) 3.1 % (1.9 %) 0.0 % (6.8 %)



Total 77,351 100.0 % $ 2,683 94.2 % 13.4 % (3.7 %) (1) (3.4 %) (3.9 %) (3.2 %) (0.5 %) (4.4 %)

(1)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 3.9% in the fourth quarter of 2020 compared to the third quarter of 2020. See page 12 for additional detail and reconciliations.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 97.3% of total revenues for the year ended December 31, 2020.

With Leasing Concessions reflected on a cash basis, Same Store Residential(1) Revenues decreased 3.9% in the fourth quarter of 2020 compared to the third quarter of 2020. See page 12 for additional detail and reconciliations.

Note: The above table reflects Residential same store results only. Residentialoperations account for approximately 97.3% of total revenues for the year endedDecember 31, 2020.

Equity Residential

2020 vs. 2019

Same Store Residential Results/Statistics by Market

Increase (Decrease) from Prior Year

Markets/Metro Areas

Apartment Units

2020 % of Actual NOI

2020 Average Rental Rate

2020 Weighted Average Physical Occupancy %

2020 Turnover

Revenues

Expenses

NOI

Average Rental Rate

Physical Occupancy

Turnover

Los Angeles

15,968

20.1

%

$

2,547

95.5

%

51.9

%

(3.1

%)

0.8

%

(4.8

%)

(2.4

%)

(0.7

%)

(2.5

%)

Orange County

4,028

5.0

%

2,252

96.7

%

45.3

%

0.2

%

0.8

%

0.0

%

0.0

%

0.2

%

(6.5

%)

San Diego

2,706

3.5

%

2,374

97.0

%

49.0

%

1.4

%

1.6

%

1.3

%

1.0

%

0.4

%

(6.0

%)

Subtotal - Southern California

22,702

28.6

%

2,473

95.9

%

50.4

%

(2.1

%)

0.9

%

(3.2

%)

(1.7

%)

(0.4

%)

(3.6

%)

San Francisco

12,183

20.6

%

3,234

94.7

%

55.3

%

(3.9

%)

3.0

%

(6.1

%)

(2.5

%)

(1.3

%)

4.2

%

Washington DC

13,711

16.5

%

2,444

95.7

%

49.9

%

(0.6

%)

0.9

%

(1.2

%)

0.4

%

(0.9

%)

3.2

%

New York

9,475

13.3

%

3,826

93.0

%

50.9

%

(6.2

%)

3.3

%

(13.2

%)

(2.4

%)

(3.7

%)

12.1

%

Seattle

8,442

10.4

%

2,433

95.5

%

53.6

%

(0.3

%)

3.9

%

(1.8

%)

0.7

%

(0.9

%)

(0.7

%)

Boston

6,346

9.8

%

3,100

94.2

%

56.3

%

(3.3

%)

0.6

%

(4.8

%)

(1.2

%)

(2.0

%)

9.0

%

Denver

726

0.8

%

2,101

94.5

%

70.8

%

(2.4

%)

2.9

%

(4.3

%)

(1.0

%)

(1.6

%)

4.7

%

Total

73,585

100.0

%

$

2,809

95.1

%

52.3

%

(2.9

%)

(1)

2.1

%

(5.0

%)

(1.5

%)

(1.3

%)

2.5

%

Equity Residential

2020 vs. 2019

Same Store Residential Results/Statistics by Market

Increase (Decrease) from Prior Year

2020 2020 2020 Weighted AverageMarkets/Metro Areas Apartment % of Average Average 2020 Revenues Expenses NOI Rental Physical Turnover Units Actual Rental Physical Turnover Rate Occupancy NOI Rate Occupancy %



Los Angeles 15,968 20.1 % $ 2,547 95.5 % 51.9 % (3.1 %) 0.8 % (4.8 %) (2.4 %) (0.7 %) (2.5 %)

Orange County 4,028 5.0 % 2,252 96.7 % 45.3 % 0.2 % 0.8 % 0.0 % 0.0 % 0.2 % (6.5 %)

San Diego 2,706 3.5 % 2,374 97.0 % 49.0 % 1.4 % 1.6 % 1.3 % 1.0 % 0.4 % (6.0 %)

Subtotal - Southern 22,702 28.6 % 2,473 95.9 % 50.4 % (2.1 %) 0.9 % (3.2 %) (1.7 %) (0.4 %) (3.6 %)California



San Francisco 12,183 20.6 % 3,234 94.7 % 55.3 % (3.9 %) 3.0 % (6.1 %) (2.5 %) (1.3 %) 4.2 %

Washington DC 13,711 16.5 % 2,444 95.7 % 49.9 % (0.6 %) 0.9 % (1.2 %) 0.4 % (0.9 %) 3.2 %

New York 9,475 13.3 % 3,826 93.0 % 50.9 % (6.2 %) 3.3 % (13.2 %) (2.4 %) (3.7 %) 12.1 %

Seattle 8,442 10.4 % 2,433 95.5 % 53.6 % (0.3 %) 3.9 % (1.8 %) 0.7 % (0.9 %) (0.7 %)

Boston 6,346 9.8 % 3,100 94.2 % 56.3 % (3.3 %) 0.6 % (4.8 %) (1.2 %) (2.0 %) 9.0 %

Denver 726 0.8 % 2,101 94.5 % 70.8 % (2.4 %) 2.9 % (4.3 %) (1.0 %) (1.6 %) 4.7 %



Total 73,585 100.0 % $ 2,809 95.1 % 52.3 % (2.9 %) (1) 2.1 % (5.0 %) (1.5 %) (1.3 %) 2.5 %

(1)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 3.6% in the year ended December 31, 2020 compared to the year ended December 31, 2019. See page 12 for additional detail and reconciliations.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 97.3% of total revenues for the year ended December 31, 2020.

With Leasing Concessions reflected on a cash basis, Same Store Residential(1) Revenues decreased 3.6% in the year ended December 31, 2020 compared to the year ended December 31, 2019. See page 12 for additional detail and reconciliations.

Note: The above table reflects Residential same store results only. Residentialoperations account for approximately 97.3% of total revenues for the year endedDecember 31, 2020.

Equity Residential

Same Store Residential Net Effective Lease Pricing Statistics

For 73,585 Same Store Apartment Units

New Lease Change (1)

Renewal Rate Achieved (2)

Blended Rate (3)

Markets/Metro Areas

Q4 2020

Q4 2019

Q4 2020

Q4 2019

Q4 2020

Q4 2019

Los Angeles

(8.9

%)

(2.9

%)

(0.4

%)

4.7

%

(4.5

%)

1.0

%

Orange County

(2.8

%)

(0.9

%)

2.1

%

5.6

%

0.0

%

2.6

%

San Diego

(0.1

%)

(1.8

%)

2.5

%

5.4

%

1.4

%

1.7

%

Subtotal - Southern California

(7.2

%)

(2.4

%)

0.3

%

4.9

%

(3.2

%)

1.3

%

San Francisco

(27.0

%)

(4.7

%)

(7.3

%)

4.4

%

(19.2

%)

(0.2

%)

Washington DC

(18.6

%)

(2.5

%)

(1.9

%)

5.4

%

(11.5

%)

1.8

%

New York

(27.3

%)

(2.8

%)

(6.5

%)

3.9

%

(18.6

%)

1.3

%

Seattle

(25.7

%)

(1.2

%)

(6.0

%)

6.9

%

(18.0

%)

2.0

%

Boston

(26.9

%)

(5.1

%)

(4.9

%)

5.6

%

(18.2

%)

0.7

%

Denver

(15.0

%)

(3.5

%)

(0.2

%)

7.3

%

(10.3

%)

0.0

%

Total

(20.6

%)

(3.1

%)

(3.4

%)

4.9

%

(13.0

%)

1.0

%

Equity Residential

Same Store Residential Net Effective Lease Pricing Statistics

For 73,585 Same Store Apartment Units

New Lease Change Renewal Rate Blended Rate (3) (1) Achieved (2)

Markets/ Q4 Q4 Q4 Q4Metro Q4 2020 2019 2020 2019 Q4 2020 2019 Areas



Los (8.9 %) (2.9 %) (0.4 %) 4.7 % (4.5 %) 1.0 %Angeles

Orange (2.8 %) (0.9 %) 2.1 % 5.6 % 0.0 % 2.6 %County

San Diego (0.1 %) (1.8 %) 2.5 % 5.4 % 1.4 % 1.7 %

Subtotal -Southern (7.2 %) (2.4 %) 0.3 % 4.9 % (3.2 %) 1.3 %California



San (27.0 %) (4.7 %) (7.3 %) 4.4 % (19.2 %) (0.2 %)Francisco

Washington (18.6 %) (2.5 %) (1.9 %) 5.4 % (11.5 %) 1.8 %DC

New York (27.3 %) (2.8 %) (6.5 %) 3.9 % (18.6 %) 1.3 %

Seattle (25.7 %) (1.2 %) (6.0 %) 6.9 % (18.0 %) 2.0 %

Boston (26.9 %) (5.1 %) (4.9 %) 5.6 % (18.2 %) 0.7 %

Denver (15.0 %) (3.5 %) (0.2 %) 7.3 % (10.3 %) 0.0 %



Total (20.6 %) (3.1 %) (3.4 %) 4.9 % (13.0 %) 1.0 %

(1)

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

(2)

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

(3)

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

New Lease Change - The net effective change in rent (inclusive of Leasing(1) 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.



Renewal Rate Achieved - The net effective change in rent (inclusive of(2) Leasing Concessions) for a new lease on an apartment unit where the lease has been renewed as compared to the rent for the prior lease of the identical apartment unit, regardless of lease term.



(3) Blended Rate - The weighted average of New Lease Change and Renewal Rate Achieved.

Equity Residential

Fourth Quarter 2020 vs. Fourth Quarter 2019

Total Same Store Operating Expenses Including 76,535 Same Store Apartment Units

$ in thousands

Q4 2020

Q4 2019

$ Change (1)

% Change

% of Q4 2020 Operating Expenses

Real estate taxes

$

86,812

$

84,293

$

2,519

3.0

%

43.7

%

On-site payroll

40,198

39,283

915

2.3

%

20.3

%

Utilities

26,870

26,547

323

1.2

%

13.5

%

Repairs and maintenance

24,910

23,714

1,196

5.0

%

12.5

%

Insurance

6,293

5,368

925

17.2

%

3.2

%

Leasing and advertising

3,155

2,788

367

13.2

%

1.6

%

Other on-site operating expenses

10,251

11,217

(966

)

(8.6

%)

5.2

%

Total Same Store Operating Expenses (2)

(includes Residential and Non-Residential)

$

198,489

$

193,210

$

5,279

2.7

%

100.0

%

Equity Residential

Fourth Quarter 2020 vs. Fourth Quarter 2019

Total Same Store Operating Expenses Including 76,535 Same Store Apartment Units

$ in thousands

$ % of Q4 2020 Q4 2019 Change % Q4 2020 (1) Change Operating Expenses



Real estate $ 86,812 $ 84,293 $ 2,519 3.0 % 43.7 %taxes

On-site payroll 40,198 39,283 915 2.3 % 20.3 %

Utilities 26,870 26,547 323 1.2 % 13.5 %

Repairs and 24,910 23,714 1,196 5.0 % 12.5 %maintenance

Insurance 6,293 5,368 925 17.2 % 3.2 %

Leasing and 3,155 2,788 367 13.2 % 1.6 %advertising

Other on-siteoperating 10,251 11,217 (966 ) (8.6 %) 5.2 %expenses



Total Same StoreOperatingExpenses (2) $ 198,489 $ 193,210 $ 5,279 2.7 % 100.0 %(includesResidential andNon-Residential)

2020 vs. 2019

Total Same Store Operating Expenses Including 73,585 Same Store Apartment Units

$ in thousands

2020

2019

$ Change (1)

% Change

% of 2020 Operating Expenses

Real estate taxes

$

337,939

$

325,332

$

12,607

3.9

%

43.7

%

On-site payroll

160,983

160,569

414

0.3

%

20.8

%

Utilities

102,768

101,137

1,631

1.6

%

13.3

%

Repairs and maintenance

93,620

94,766

(1,146

)

(1.2

%)

12.1

%

Insurance

24,310

20,597

3,713

18.0

%

3.2

%

Leasing and advertising

10,321

10,241

80

0.8

%

1.3

%

Other on-site operating expenses

43,538

44,860

(1,322

)

(2.9

%)

5.6

%

Total Same Store Operating Expenses (2)

(includes Residential and Non-Residential)

$

773,479

$

757,502

$

15,977

2.1

%

100.0

%

2020 vs. 2019

Total Same Store Operating Expenses Including 73,585 Same Store Apartment Units

$ in thousands

$ % of 2020 2019 Change % 2020 (1) Change Operating Expenses



Real estate $ 337,939 $ 325,332 $ 12,607 3.9 % 43.7 %taxes

On-site payroll 160,983 160,569 414 0.3 % 20.8 %

Utilities 102,768 101,137 1,631 1.6 % 13.3 %

Repairs and 93,620 94,766 (1,146 ) (1.2 %) 12.1 %maintenance

Insurance 24,310 20,597 3,713 18.0 % 3.2 %

Leasing and 10,321 10,241 80 0.8 % 1.3 %advertising

Other on-siteoperating 43,538 44,860 (1,322 ) (2.9 %) 5.6 %expenses



Total Same StoreOperatingExpenses (2) $ 773,479 $ 757,502 $ 15,977 2.1 % 100.0 %(includesResidential andNon-Residential)



(1)

Both quarter-over-quarter and year-over-year changes are due primarily to:

Real estate taxes - Higher rates and assessed values continue to drive real estate tax growth across most markets.

On-site payroll - Increase driven by higher employee benefit-related costs, partially offset by the transition to an enhanced operating platform and less overtime.

Repairs and maintenance - Quarter-over-quarter increase primarily driven by COVID-19-related cleaning expenses and higher turnover expenses. Year-over-year decrease primarily driven by deferral and cancellation of some projects as a result of COVID-19-related delays.

Insurance - Increase due to higher premiums on property insurance renewal due to challenging conditions in the insurance market.

Leasing and advertising - Quarter-over-quarter increase due primarily to enhanced digital advertising.

Other on-site operating expenses - Decrease primarily due to reduced ground lease expense and lower legal expenses due to legislative suspension of evictions in many markets.

(2)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

(1) Both quarter-over-quarter and year-over-year changes are due primarily to:



Real estate taxes - Higher rates and assessed values continue to drive real estate tax growth across most markets.



On-site payroll - Increase driven by higher employee benefit-related costs, partially offset by the transition to an enhanced operating platform and less overtime.



Repairs and maintenance - Quarter-over-quarter increase primarily driven by COVID-19-related cleaning expenses and higher turnover expenses. Year-over-year decrease primarily driven by deferral and cancellation of some projects as a result of COVID-19-related delays.



Insurance - Increase due to higher premiums on property insurance renewal due to challenging conditions in the insurance market.



Leasing and advertising - Quarter-over-quarter increase due primarily to enhanced digital advertising.



Other on-site operating expenses - Decrease primarily due to reduced ground lease expense and lower legal expenses due to legislative suspension of evictions in many markets.



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

Equity Residential

Debt Summary as of December 31, 2020

($ in thousands)

Debt Balances (1)

% of Total

Weighted Average Rates (1)

Weighted Average Maturities (years)

Secured

$

2,293,890

28.5

%

3.33

%

6.2

Unsecured

5,750,366

71.5

%

3.91

%

10.3

Total

$

8,044,256

100.0

%

3.76

%

9.0

Fixed Rate Debt:

Secured - Conventional

$

1,901,091

23.6

%

3.79

%

4.7

Unsecured - Public

5,335,536

66.4

%

4.03

%

11.0

Fixed Rate Debt

7,236,627

90.0

%

3.97

%

9.3

Floating Rate Debt:

Secured - Conventional

31,494

0.4

%

2.71

%

1.5

Secured - Tax Exempt

361,305

4.5

%

1.00

%

15.0

Unsecured - Revolving Credit Facility

-

-

1.47

%

3.8

Unsecured - Commercial Paper Program (2)

414,830

5.1

%

1.72

%

-

Floating Rate Debt

807,629

10.0

%

1.34

%

7.0

Total

$

8,044,256

100.0

%

3.76

%

9.0

Equity Residential

Debt Summary as of December 31, 2020

($ in thousands)

Debt Weighted Weighted Balances % of Average Average (1) Total Rates Maturities (1) (years)



Secured $ 2,293,890 28.5 % 3.33 % 6.2

Unsecured 5,750,366 71.5 % 3.91 % 10.3



Total $ 8,044,256 100.0 % 3.76 % 9.0

Fixed Rate Debt:

Secured - Conventional $ 1,901,091 23.6 % 3.79 % 4.7

Unsecured - Public 5,335,536 66.4 % 4.03 % 11.0



Fixed Rate Debt 7,236,627 90.0 % 3.97 % 9.3



Floating Rate Debt:

Secured - Conventional 31,494 0.4 % 2.71 % 1.5

Secured - Tax Exempt 361,305 4.5 % 1.00 % 15.0

Unsecured - Revolving - - 1.47 % 3.8 Credit Facility

Unsecured - Commercial 414,830 5.1 % 1.72 % - Paper Program (2)



Floating Rate Debt 807,629 10.0 % 1.34 % 7.0



Total $ 8,044,256 100.0 % 3.76 % 9.0

(1)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

(2)

At December 31, 2020, the weighted average maturity of commercial paper outstanding was 45 days. The weighted average amount outstanding for the year ended December 31, 2020 was approximately $276.6 million.

Note: The Company capitalized interest of approximately $10.2 million and $6.9 million during the years ended December 31, 2020 and 2019, respectively. The Company capitalized interest of approximately $3.3 million and $2.1 million during the quarters ended December 31, 2020 and 2019, respectively.

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

At December 31, 2020, the weighted average maturity of commercial paper(2) outstanding was 45 days. The weighted average amount outstanding for the year ended December 31, 2020 was approximately $276.6 million.

Note: The Company capitalized interest of approximately $10.2 million and $6.9million during the years ended December 31, 2020 and 2019, respectively. TheCompany capitalized interest of approximately $3.3 million and $2.1 millionduring the quarters ended December 31, 2020 and 2019, respectively.

Equity Residential

Debt Maturity Schedule as of December 31, 2020

($ in thousands)

Year

Fixed Rate

Floating Rate

Total

% of Total

Weighted Average Coupons on Fixed Rate Debt (1)

Weighted Average Coupons on Total Debt (1)

2021

$

35,665

$

415,000

(2)

$

450,665

5.5

%

4.41

%

0.64

%

2022

264,185

31,855

296,040

3.7

%

3.25

%

3.15

%

2023

1,325,588

3,500

1,329,088

16.4

%

3.74

%

3.73

%

2024

-

6,100

6,100

0.1

%

N/A

0.10

%

2025

450,000

8,200

458,200

5.6

%

3.38

%

3.32

%

2026

592,025

9,000

601,025

7.4

%

3.58

%

3.53

%

2027

400,000

9,800

409,800

5.0

%

3.25

%

3.17

%

2028

900,000

42,380

942,380

11.6

%

3.79

%

3.62

%

2029

888,120

11,500

899,620

11.1

%

3.30

%

3.26

%

2030

1,095,000

12,600

1,107,600

13.6

%

2.55

%

2.52

%

2031+

1,350,850

275,535

1,626,385

20.0

%

4.39

%

3.67

%

Subtotal

7,301,433

825,470

8,126,903

100.0

%

3.56

%

3.23

%

Deferred Financing Costs and Unamortized (Discount)

(64,806

)

(17,841

)

(82,647

)

N/A

N/A

N/A

Total

$

7,236,627

$

807,629

$

8,044,256

100.0

%

3.56

%

3.23

%

Equity Residential

Debt Maturity Schedule as of December 31, 2020

($ in thousands)

Weighted Weighted Average AverageYear Fixed Floating Total % of Coupons Coupons Rate Rate Total on Fixed on Rate Total Debt (1) Debt (1)



2021 $ 35,665 $ 415,000 (2) $ 450,665 5.5 % 4.41 % 0.64 %

2022 264,185 31,855 296,040 3.7 % 3.25 % 3.15 %

2023 1,325,588 3,500 1,329,088 16.4 % 3.74 % 3.73 %

2024 - 6,100 6,100 0.1 % N/A 0.10 %

2025 450,000 8,200 458,200 5.6 % 3.38 % 3.32 %

2026 592,025 9,000 601,025 7.4 % 3.58 % 3.53 %

2027 400,000 9,800 409,800 5.0 % 3.25 % 3.17 %

2028 900,000 42,380 942,380 11.6 % 3.79 % 3.62 %

2029 888,120 11,500 899,620 11.1 % 3.30 % 3.26 %

2030 1,095,000 12,600 1,107,600 13.6 % 2.55 % 2.52 %

2031+ 1,350,850 275,535 1,626,385 20.0 % 4.39 % 3.67 %

Subtotal 7,301,433 825,470 8,126,903 100.0 % 3.56 % 3.23 %

DeferredFinancingCosts and (64,806 ) (17,841 ) (82,647 ) N/A N/A N/A Unamortized(Discount)



Total $ 7,236,627 $ 807,629 $ 8,044,256 100.0 % 3.56 % 3.23 %

(1)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

(2)

Represents principal outstanding on the Company's commercial paper program.

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

(2) Represents principal outstanding on the Company's commercial paper program.

Equity Residential

Selected Unsecured Public Debt Covenants

December 31,

September 30,

2020

2020

Debt to Adjusted Total Assets (not to exceed 60%)

30.5%

31.6%

Secured Debt to Adjusted Total Assets (not to exceed 40%)

9.6%

9.6%

Consolidated Income Available for Debt Service to

Maximum Annual Service Charges

(must be at least 1.5 to 1)

5.42

4.99

Total Unencumbered Assets to Unsecured Debt

(must be at least 125%)

457.1%

437.4%

Note: These selected covenants represent the most restrictive financial covenants relating to ERP Operating Limited Partnership's ("ERPOP") outstanding public debt securities. Equity Residential is the general partner of ERPOP.

Equity Residential

Selected Unsecured Public Debt Covenants

December September 31, 30,

2020 2020

Debt to Adjusted Total Assets (not to exceed 30.5% 31.6% 60%)



Secured Debt to Adjusted Total Assets (not to 9.6% 9.6% exceed 40%)



Consolidated Income Available for Debt Service to

Maximum Annual Service Charges

(must be at least 1.5 to 1) 5.42 4.99



Total Unencumbered Assets to Unsecured Debt

(must be at least 125%) 457.1% 437.4%

Note: These selected covenants represent the most restrictive financialcovenants relating to ERP Operating Limited Partnership's ("ERPOP") outstandingpublic debt securities. Equity Residential is the general partner of ERPOP.

Selected Credit Ratios

December 31,

September 30,

2020

2020

Total debt to Normalized EBITDAre

4.99x

5.00x

Net debt to Normalized EBITDAre

4.96x

4.89x

Unencumbered NOI as a % of total NOI

86.6%

86.1%

Note: See Normalized EBITDAre Reconciliations for detail.

Selected Credit Ratios

December 31, September 30,

2020 2020

Total debt to Normalized EBITDAre 4.99x 5.00x



Net debt to Normalized EBITDAre 4.96x 4.89x



Unencumbered NOI as a % of total NOI 86.6% 86.1%

Note: See Normalized EBITDAre Reconciliations for detail.

Equity Residential

Capital Structure as of December 31, 2020

(Amounts in thousands except for share/unit and per share amounts)

Secured Debt

$

2,293,890

28.5

%

Unsecured Debt

5,750,366

71.5

%

Total Debt

8,044,256

100.0

%

26.0

%

Common Shares (includes Restricted Shares)

372,302,000

96.4

%

Units (includes OP Units and Restricted Units)

13,858,073

3.6

%

Total Shares and Units

386,160,073

100.0

%

Common Share Price at December 31, 2020

$

59.28

22,891,569

99.8

%

Perpetual Preferred Equity (see below)

37,280

0.2

%

Total Equity

22,928,849

100.0

%

74.0

%

Total Market Capitalization

$

30,973,105

100.0

%

Equity Residential

Capital Structure as of December 31, 2020

(Amounts in thousands except for share/unit and per share amounts)

Secured Debt $ 2,293,890 28.5 %

Unsecured Debt 5,750,366 71.5 %



Total Debt 8,044,256 100.0 % 26.0 %



Common Shares(includes 372,302,000 96.4 % RestrictedShares)

Units(includes OPUnits and 13,858,073 3.6 % RestrictedUnits)



Total Shares 386,160,073 100.0 % and Units

Common SharePrice at $ 59.28 December 31,2020

22,891,569 99.8 %

PerpetualPreferred 37,280 0.2 % Equity (seebelow)



Total Equity 22,928,849 100.0 % 74.0 %



Total Market $ 30,973,105 100.0 %Capitalization

Perpetual Preferred Equity as of December 31, 2020

(Amounts in thousands except for share and per share amounts)

Series

Call Date

Outstanding Shares

Liquidation Value

Annual Dividend Per Share

Annual Dividend Amount

Preferred Shares:

8.29% Series K

12/10/26

745,600

$

37,280

$

4.145

$

3,091

Perpetual Preferred Equity as of December 31, 2020

(Amounts in thousands except for share and per share amounts)

Annual AnnualSeries Call Outstanding Liquidation Dividend Dividend Date Shares Value Per Amount Share

Preferred Shares:

8.29% Series 12/10/ 745,600 $ 37,280 $ 4.145 $ 3,091 K 26



Equity ResidentialCommon Share and Unit

Weighted Average Amounts Outstanding

2020

2019

Q4 2020

Q4 2019

Weighted Average Amounts Outstanding for Net Income Purposes:

Common Shares - basic

371,790,858

370,460,884

371,914,798

371,155,240

Shares issuable from assumed conversion/vesting of:

- OP Units

13,002,929

12,907,453

12,984,015

12,883,309

- long-term compensation shares/units

1,079,769

2,965,118

856,809

3,104,719

Total Common Shares and Units - diluted

385,873,556

386,333,455

385,755,622

387,143,268

Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes:

Common Shares - basic

371,790,858

370,460,884

371,914,798

371,155,240

OP Units - basic

13,002,929

12,907,453

12,984,015

12,883,309

Total Common Shares and OP Units - basic

384,793,787

383,368,337

384,898,813

384,038,549

Shares issuable from assumed conversion/vesting of:

- long-term compensation shares/units

1,079,769

2,965,118

856,809

3,104,719

Total Common Shares and Units - diluted

385,873,556

386,333,455

385,755,622

387,143,268

Period Ending Amounts Outstanding:

Common Shares (includes Restricted Shares)

372,302,000

371,670,884

Units (includes OP Units and Restricted Units)

13,858,073

13,731,315

Total Shares and Units

386,160,073

385,402,199

Equity Residential

Common Share and Unit

Weighted Average Amounts Outstanding

2020 2019 Q4 2020 Q4 2019



WeightedAverageAmountsOutstanding for NetIncomePurposes:

CommonShares - 371,790,858 370,460,884 371,914,798 371,155,240 basic

Sharesissuablefrom assumed conversion/vesting of:

- OP Units 13,002,929 12,907,453 12,984,015 12,883,309

- long-termcompensation 1,079,769 2,965,118 856,809 3,104,719 shares/units



Total CommonShares and 385,873,556 386,333,455 385,755,622 387,143,268 Units -diluted



WeightedAverageAmountsOutstanding for FFO andNormalizedFFOPurposes:

CommonShares - 371,790,858 370,460,884 371,914,798 371,155,240 basic

OP Units - 13,002,929 12,907,453 12,984,015 12,883,309 basic



Total CommonShares and 384,793,787 383,368,337 384,898,813 384,038,549 OP Units -basic

Sharesissuablefrom assumed conversion/vesting of:

- long-termcompensation 1,079,769 2,965,118 856,809 3,104,719 shares/units



Total CommonShares and 385,873,556 386,333,455 385,755,622 387,143,268 Units -diluted



PeriodEnding AmountsOutstanding:

CommonShares(includes 372,302,000 371,670,884 RestrictedShares)

Units(includes OPUnits and 13,858,073 13,731,315 RestrictedUnits)



Total Shares 386,160,073 385,402,199 and Units

Equity Residential

Development and Lease-Up Projects as of December 31, 2020

(Amounts in thousands except for project and apartment unit amounts)

No. of

Total Budgeted

Total Book

Total Book Value Not

Estimated/Actual

Projects

Location

Apartment Units

Capital Cost

Value to Date

Placed in Service

Total Debt

Percentage Completed

Initial Occupancy

Completion Date

Stabilization Date

Percentage Leased

Percentage Occupied

Projects Under Development - Wholly Owned:

Alcott Apartments (fka West End Tower)

Boston, MA

470

$

409,749

$

267,783

$

267,783

$

-

67%

Q2 2021

Q3 2021

Q1 2023

-

-

The Edge (fka 4885 Edgemoor Lane) (A)

Bethesda, MD

154

75,271

52,312

52,312

-

70%

Q3 2021

Q3 2021

Q3 2022

-

-

Projects Under Development - Wholly Owned

624

485,020

320,095

320,095

-

Projects Under Development - Partially Owned:

Aero Apartments (B)

Alameda, CA

200

117,794

91,039

91,039

31,494

78%

Q1 2021

Q2 2021

Q2 2022

-

-

Projects Under Development - Partially Owned

200

117,794

91,039

91,039

31,494

Total Projects Under Development

824

$

602,814

$

411,134

$

411,134

$

31,494

Land Held for Development

N/A

N/A

$

86,170

$

86,170

$

-

NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS

Total Budgeted Capital Cost

Q4 2020 NOI

Projects Under Development

$

602,814

$

-

Equity Residential

Development and Lease-Up Projects as of December 31, 2020

(Amounts in thousands except for project and apartment unit amounts)

Total Total Total No. of Budgeted Book Book Estimated/Actual Value Not

Projects Location Apartment Capital Value Placed in Total Percentage Initial Completion Stabilization Percentage Percentage Units Cost to Date Service Debt Completed Occupancy Date Date Leased Occupied



Projects UnderDevelopment - Wholly Owned:

AlcottApartments Boston, 470 $ 409,749 $ 267,783 $ 267,783 $ - 67% Q2 2021 Q3 2021 Q1 2023 - - (fka West MAEnd Tower)

The Edge(fka 4885 Bethesda, 154 75,271 52,312 52,312 - 70% Q3 2021 Q3 2021 Q3 2022 - - Edgemoor MDLane) (A)



Projects UnderDevelopment - Wholly 624 485,020 320,095 320,095 - Owned



Projects UnderDevelopment - Partially Owned:

Aero Alameda,Apartments CA 200 117,794 91,039 91,039 31,494 78% Q1 2021 Q2 2021 Q2 2022 - - (B)



Projects UnderDevelopment - Partially 200 117,794 91,039 91,039 31,494 Owned



TotalProjects 824 $ 602,814 $ 411,134 $ 411,134 $ 31,494 UnderDevelopment



Land Heldfor N/A N/A $ 86,170 $ 86,170 $ - Development



TotalNOI CONTRIBUTION FROM DEVELOPMENT Budgeted Q4 2020 PROJECTS Capital NOI Cost

ProjectsUnder $ 602,814 $ - Development

(A)

The Edge - The land under this project is subject to a long-term ground lease. This project is adjacent to an existing apartment property owned by the Company.

(B)

Aero Apartments - This development project is owned 90% by the Company and 10% by a third party partner in a joint venture consolidated by the Company. Construction is being partially funded with a construction loan that is non-recourse to the Company. The joint venture partner has funded $4.7 million for its allocated share of the project equity and serves as the developer of the project.

The Edge - The land under this project is subject to a long-term ground(A) lease. This project is adjacent to an existing apartment property owned by the Company.



Aero Apartments - This development project is owned 90% by the Company and 10% by a third party partner in a joint venture consolidated by the(B) Company. Construction is being partially funded with a construction loan that is non-recourse to the Company. The joint venture partner has funded $4.7 million for its allocated share of the project equity and serves as the developer of the project.

Equity Residential

Capital Expenditures to Real Estate

For the Year Ended December 31, 2020

(Amounts in thousands except for apartment unit and per apartment unit amounts)

Same Store Properties

Non-Same Store Properties/Other

Total

Same Store Avg. Per Apartment Unit

Total Apartment Units

73,585

4,304

77,889

Building Improvements

$

78,969

$

2,905

$

81,874

$

1,073

Renovation Expenditures (1)

22,060

6

22,066

300

Replacements

31,252

787

32,039

425

Capital Expenditures to Real Estate (2)

$

132,281

$

3,698

$

135,979

$

1,798

Equity Residential

Capital Expenditures to Real Estate

For the Year Ended December 31, 2020

(Amounts in thousands except for apartment unit and per apartment unit amounts)

Non-Same Same Store Same Store Store Avg. Properties Properties Total Per /Other Apartment Unit



Total Apartment 73,585 4,304 77,889 Units



Building $ 78,969 $ 2,905 $ 81,874 $ 1,073 Improvements



Renovation 22,060 6 22,066 300 Expenditures (1)



Replacements 31,252 787 32,039 425



CapitalExpenditures to $ 132,281 $ 3,698 $ 135,979 $ 1,798 Real Estate (2)

(1)

Renovation Expenditures on 1,034 same store apartment units for the year ended December 31, 2020 approximated $21,335 per apartment unit renovated.

(2)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

(1) Renovation Expenditures on 1,034 same store apartment units for the year ended December 31, 2020 approximated $21,335 per apartment unit renovated.



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

Equity Residential

Normalized EBITDAre Reconciliations

(Amounts in thousands)

Trailing Twelve Months

2020

2019

December 31, 2020

September 30, 2020

Q4

Q3

Q2

Q1

Q4

Net income

$

962,501

$

1,000,823

$

262,984

$

95,365

$

271,481

$

332,671

$

301,306

Interest expense incurred, net

365,073

348,649

116,724

80,874

81,885

85,590

100,300

Amortization of deferred financing costs

8,939

9,259

2,686

2,101

2,111

2,041

3,006

Amortization of above/below market lease intangibles

4,391

4,391

1,098

1,098

1,098

1,097

1,098

Depreciation

820,832

833,885

201,829

200,605

205,976

212,422

214,882

Income and other tax expense (benefit)

852

(2,528

)

350

262

187

53

(3,030

)

EBITDA

2,162,588

2,194,479

585,671

380,305

562,738

633,874

617,562

Net (gain) loss on sales of real estate properties

(531,807

)

(530,455

)

(179,589

)

25

(144,266

)

(207,977

)

(178,237

)

Net (gain) loss on sales of unconsolidated entities - operating assets

(1,636

)

(1,000

)

(636

)

(1,000

)

-

-

-

EBITDAre

1,629,145

1,663,024

405,446

379,330

418,472

425,897

439,325

Write-off of pursuit costs (other expenses)

6,869

6,295

2,005

1,586

1,651

1,627

1,431

(Income) loss from investments in unconsolidated entities - operations

4,920

4,406

1,475

1,246

1,042

1,157

961

Net (gain) loss on sales of land parcels

(34,234

)

33

(34,234

)

-

-

-

33

Insurance/litigation settlement or reserve income (interest and other income)

(4,152

)

(2,353

)

(1,800

)

(3

)

(767

)

(1,582

)

(1

)

Insurance/litigation/environmental settlement or reserve expense (other expenses)

(1,293

)

3,936

-

500

(1,956

)

163

5,229

Advocacy contributions (other expenses)

11,062

4,146

6,981

1,728

1,852

501

65

Data analytics project (other expenses)

-

-

-

-

-

-

-

Other

(965

)

(1,108

)

(15

)

(429

)

(521

)

-

(158

)

Normalized EBITDAre

$

1,611,352

$

1,678,379

$

379,858

$

383,958

$

419,773

$

427,763

$

446,885

Balance Sheet Items:

December 31, 2020

September 30, 2020

Total debt

$

8,044,256

$

8,396,730

Cash and cash equivalents

(42,591

)

(178,333

)

Mortgage principal reserves/sinking funds

(14,168

)

(13,013

)

Net debt

$

7,987,497

$

8,205,384

Equity Residential

Normalized EBITDAre Reconciliations

(Amounts in thousands)

Trailing Twelve Months 2020 2019

December September 31, 30, Q4 Q3 Q2 Q1 Q4 2020 2020

Net income $ 962,501 $ 1,000,823 $ 262,984 $ 95,365 $ 271,481 $ 332,671 $ 301,306

Interest expense 365,073 348,649 116,724 80,874 81,885 85,590 100,300 incurred, net

Amortization ofdeferred 8,939 9,259 2,686 2,101 2,111 2,041 3,006 financing costs

Amortization ofabove/below 4,391 4,391 1,098 1,098 1,098 1,097 1,098 market leaseintangibles

Depreciation 820,832 833,885 201,829 200,605 205,976 212,422 214,882

Income and othertax expense 852 (2,528 ) 350 262 187 53 (3,030 )(benefit)



EBITDA 2,162,588 2,194,479 585,671 380,305 562,738 633,874 617,562



Net (gain) losson sales of real (531,807 ) (530,455 ) (179,589 ) 25 (144,266 ) (207,977 ) (178,237 )estateproperties

Net (gain) losson sales ofunconsolidated (1,636 ) (1,000 ) (636 ) (1,000 ) - - - entities -operating assets



EBITDAre 1,629,145 1,663,024 405,446 379,330 418,472 425,897 439,325



Write-off ofpursuit costs 6,869 6,295 2,005 1,586 1,651 1,627 1,431 (other expenses)

(Income) lossfrom investmentsin 4,920 4,406 1,475 1,246 1,042 1,157 961 unconsolidatedentities -operations

Net (gain) losson sales of land (34,234 ) 33 (34,234 ) - - - 33 parcels

Insurance/litigationsettlement or (4,152 ) (2,353 ) (1,800 ) (3 ) (767 ) (1,582 ) (1 )reserve income(interest andother income)

Insurance/litigation/environmental (1,293 ) 3,936 - 500 (1,956 ) 163 5,229 settlement orreserve expense(other expenses)

Advocacycontributions 11,062 4,146 6,981 1,728 1,852 501 65 (other expenses)

Data analyticsproject (other - - - - - - - expenses)

Other (965 ) (1,108 ) (15 ) (429 ) (521 ) - (158 )



Normalized $ 1,611,352 $ 1,678,379 $ 379,858 $ 383,958 $ 419,773 $ 427,763 $ 446,885 EBITDAre



Balance Sheet December SeptemberItems: 31, 30, 2020 2020



Total debt $ 8,044,256 $ 8,396,730

Cash and cash (42,591 ) (178,333 ) equivalents

Mortgageprincipal (14,168 ) (13,013 ) reserves/sinkingfunds

Net debt $ 7,987,497 $ 8,205,384

Note:

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

EBITDA, EBITDAre and Normalized EBITDAre do not include any adjustmentsNote: 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 ResidentialAdjustments from FFO to Normalized FFO(Amounts in thousands)

Year Ended December 31,

Quarter Ended December 31,

2020

2019

Variance

2020

2019

Variance

Impairment - non-operating assets

$

-

$

-

$

-

$

-

$

-

$

-

Write-off of pursuit costs (other expenses)

6,869

5,529

1,340

2,005

1,431

574

Prepayment premiums/penalties (interest expense)

26,150

13,647

12,503

26,150

10,266

15,884

Write-off of unamortized deferred financing costs (interest expense)

634

3,148

(2,514

)

597

875

(278

)

Write-off of unamortized (premiums)/discounts/OCI (interest expense)

12,508

7,196

5,312

12,508

1,043

11,465

Debt extinguishment and preferred share redemption (gains) losses

39,292

23,991

15,301

39,255

12,184

27,071

Net (gain) loss on sales of land parcels

(34,234

)

(2,044

)

(32,190

)

(34,234

)

33

(34,267

)

(Income) loss from investments in unconsolidated entities - non-operating assets

1,644

1,104

540

622

227

395

Non-operating asset (gains) losses

(32,590

)

(940

)

(31,650

)

(33,612

)

260

(33,872

)

Insurance/litigation settlement or reserve income (interest and other income)

(4,152

)

(384

)

(3,768

)

(1,800

)

(1

)

(1,799

)

Insurance/litigation/environmental settlement or reserve expense (other expenses)

(1,293

)

7,198

(8,491

)

-

5,229

(5,229

)

Advocacy contributions (other expenses)

11,062

270

10,792

6,981

65

6,916

Data analytics project (other expenses)

-

4,199

(4,199

)

-

-

-

Other

(965

)

(2,853

)

1,888

(15

)

(3,402

)

3,387

Other miscellaneous items

4,652

8,430

(3,778

)

5,166

1,891

3,275

Adjustments from FFO to Normalized FFO

$

18,223

$

37,010

$

(18,787

)

$

12,814

$

15,766

$

(2,952

)

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

Equity ResidentialAdjustments from FFO to Normalized FFO(Amounts in thousands)

Year Ended December 31, Quarter Ended December 31,

2020 2019 Variance 2020 2019 Variance



Impairment -non-operating $ - $ - $ - $ - $ - $ - assets



Write-off ofpursuit costs 6,869 5,529 1,340 2,005 1,431 574 (otherexpenses)



Prepaymentpremiums/penalties 26,150 13,647 12,503 26,150 10,266 15,884 (interestexpense)

Write-off ofunamortizeddeferredfinancing 634 3,148 (2,514 ) 597 875 (278 )costs(interestexpense)

Write-off ofunamortized(premiums)/ 12,508 7,196 5,312 12,508 1,043 11,465 discounts/OCI(interestexpense)

Debtextinguishmentand preferred 39,292 23,991 15,301 39,255 12,184 27,071 shareredemption(gains) losses



Net (gain)loss on sales (34,234 ) (2,044 ) (32,190 ) (34,234 ) 33 (34,267 )of landparcels

(Income) lossfrominvestments inunconsolidated 1,644 1,104 540 622 227 395 entities -non-operatingassets

Non-operatingasset (gains) (32,590 ) (940 ) (31,650 ) (33,612 ) 260 (33,872 )losses



Insurance/litigationsettlement or (4,152 ) (384 ) (3,768 ) (1,800 ) (1 ) (1,799 )reserve income(interest andother income)

Insurance/litigation/environmentalsettlement or (1,293 ) 7,198 (8,491 ) - 5,229 (5,229 )reserveexpense (otherexpenses)

Advocacycontributions 11,062 270 10,792 6,981 65 6,916 (otherexpenses)

Data analyticsproject (other - 4,199 (4,199 ) - - - expenses)

Other (965 ) (2,853 ) 1,888 (15 ) (3,402 ) 3,387

Othermiscellaneous 4,652 8,430 (3,778 ) 5,166 1,891 3,275 items



Adjustmentsfrom FFO to $ 18,223 $ 37,010 $ (18,787 ) $ 12,814 $ 15,766 $ (2,952 )Normalized FFO

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

Equity Residential

Normalized FFO Guidance and Assumptions

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

Q1 2021 Full Year 2021



2021 Normalized FFO Guidance (per share diluted)



Expected Normalized FFO Per Share $0.65 to $2.60 to $0.69 $2.80



2021 Same Store Assumptions (includes Residential and Non-Residential)



Physical Occupancy 94.8% to 95.8%

Revenue change (1) (9.0%) to (7.0%)

Expense change 3.0% to 4.0%

NOI change (2) (15.0%) to (12.0%)



2021 Transaction Assumptions



The Company expects consolidated rental acquisitions to approximately equal consolidated rental dispositions.



2021 Debt Assumptions



Weighted average debt outstanding $8.1B to $8.3B

Interest expense, net (on a Normalized FFO basis) $270.0M to $276.5M

Capitalized interest $14.5M to $16.5M



2021 Capital Expenditures to Real Estate Assumptions for Same Store Properties (3)



Capital Expenditures to Real Estate for Same Store $150.0MProperties

Capital Expenditures to Real Estate per Same Store Apartment Unit $1,950



2021 Other Guidance Assumptions



Property management expense $96.5M to $98.5M

General and administrative expense $53.0M to $55.0M

Debt offerings No amounts budgeted

Weighted average Common Shares and Units - Diluted 386.8M

(1)

Revenue change is reflected on a GAAP basis. Revenue change would be approximately (8.0%) to (6.0%) on a cash basis.

(2)

Approximately 25 basis point change in NOI percentage = $0.01 per share change in EPS/FFO per share/Normalized FFO per share.

(3)

During 2021, the Company expects to spend approximately $25.0 million for apartment unit Renovation Expenditures on approximately 1,250 same store apartment units at an average cost of approximately $20,000 per apartment unit renovated, which is included in the Capital Expenditures to Real Estate assumptions noted above.

(1) Revenue change is reflected on a GAAP basis. Revenue change would be approximately (8.0%) to (6.0%) on a cash basis.



(2) Approximately 25 basis point change in NOI percentage = $0.01 per share change in EPS/FFO per share/Normalized FFO per share.



During 2021, the Company expects to spend approximately $25.0 million for apartment unit Renovation Expenditures on approximately 1,250 same store(3) apartment units at an average cost of approximately $20,000 per apartment unit renovated, which is included in the Capital Expenditures to Real Estate assumptions noted above.

Equity Residential

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

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

(All per share data is diluted)

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

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

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

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

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

Capital Expenditures to Real Estate:

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

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

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

Debt Balances:

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

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

Equity Residential

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

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

(All per share data is diluted)

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

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

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

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

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

Capital Expenditures to Real Estate:

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

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

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

Debt Balances:

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

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

December 31, 2020

Unsecured revolving credit facility commitment $ 2,500,000



Commercial paper balance outstanding (415,000 )



Unsecured revolving credit facility balance outstanding -



Other restricted amounts (100,949 )



Unsecured revolving credit facility availability $ 1,984,051

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

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

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

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

EBITDA for Real Estate and Normalized EBITDA for Real Estate:

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

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

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

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

Year Ended Quarter Ended December 31, 2020 December 31, 2020



Net Gain (Loss) on Sales of Real $ 531,807 $ 179,589 Estate Properties

Accumulated Depreciation Gain (237,803 ) (80,332 )



Economic Gain (Loss) $ 294,004 $ 99,257

FFO and Normalized FFO:

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

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

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

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

pursuit cost write-offs;

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

gains and losses from non-operating assets; and

other miscellaneous items.

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

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

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

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

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

Actual Actual Expected Expected

Actual Actual Q4 2020 Q4 2019 Q1 2021 2021 2020 2019

Per Per Per Per Per Per Share Share Share Share Share Share

EPS - Diluted $ 2.45 $ 2.60 $ 0.68 $ 0.77 $0.31 to $2.55 to $0.35 $2.75

Depreciation 2.11 2.13 0.52 0.55 0.51 2.02 expense

Net (gain) (1.35 ) (1.34 ) (0.47 ) (0.46 ) (0.17) (1.99) loss on sales

Impairment -operating - - - - - - assets



FFO per share 3.21 3.39 0.73 0.86 0.65 to 2.58 to - Diluted 0.69 2.78



Impairment -non-operating - - - - - - assets

Write-off of 0.02 0.02 0.01 0.01 - 0.01 pursuit costs

Debtextinguishment and preferred share

redemption 0.10 0.06 0.10 0.03 - - (gains) losses

Non-operatingasset (gains) (0.08 ) - (0.09 ) - - 0.01 losses

Othermiscellaneous 0.01 0.02 0.01 0.01 - - items



Normalized FFO $0.65 to $2.60 toper share - $ 3.26 $ 3.49 $ 0.76 $ 0.91 $0.69 $2.80 Diluted

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

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

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

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

Year Ended December 31, Quarter Ended December 31,

2020 2019 2020 2019

Operating income $ 1,317,990 $ 1,356,160 $ 356,606 $ 408,928

Adjustments:

Property 93,825 95,344 22,312 22,639 management

General and 48,305 52,757 11,093 11,630 administrative

Depreciation 820,832 831,083 201,829 214,882

Net (gain) losson sales of realestate

properties (531,807 ) (447,637 ) (179,589 ) (178,237 )

Total NOI $ 1,749,145 $ 1,887,707 $ 412,251 $ 479,842

Rental income:

Same store $ 2,419,018 $ 2,519,235 $ 600,254 $ 655,887

Non-same store/ 152,687 181,456 13,181 28,008 other

Total rental 2,571,705 2,700,691 613,435 683,895 income

Operating expenses:

Same store 773,479 757,502 198,489 193,210

Non-same store/ 49,081 55,482 2,695 10,843 other

Total operating 822,560 812,984 201,184 204,053 expenses

NOI:

Same store 1,645,539 1,761,733 401,765 462,677

Non-same store/ 103,606 125,974 10,486 17,165 other

Total NOI $ 1,749,145 $ 1,887,707 $ 412,251 $ 479,842

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

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

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

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

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

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

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

Residential - Consists of multifamily apartment revenues and expenses.

Same Store Operating Expenses:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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CONTACT: Marty McKenna (312) 474-1300 investorrelations@eqr.com