Business Wire | Jul 27, 2021 04:19PM EDT

Equity Residential Reports Second Quarter 2021 Results

Jul. 27, 2021

CHICAGO--(BUSINESS WIRE)--Jul. 27, 2021--Equity Residential (NYSE: EQR) today reported results for the quarter and six months ended June 30, 2021 and has posted a Q2 2021 Management Presentation to its website as referenced below.

Second Quarter 2021 Results

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



Quarter Ended June 30,

2021 2020 $ % Change Change

Earnings Per Share (EPS) $ 0.84 $ 0.70 $ 0.14 20.0 %

Funds from Operations (FFO) $ 0.78 $ 0.86 $ (0.08 ) (9.3 %) per share

Normalized FFO per share $ 0.72 $ 0.86 $ (0.14 ) (16.3 %)



Six Months Ended June 30,

2021

2020

$ Change

% Change

Earnings Per Share (EPS)

$

1.00

$

1.53

$

(0.53

)

(34.6

%)

Funds from Operations (FFO) per share

$

1.45

$

1.72

$

(0.27

)

(15.7

%)

Normalized FFO per share

$

1.40

$

1.72

$

(0.32

)

(18.6

%)

"Driven by an accelerating economy and the reopening of cities, our operations continue to recover rapidly with robust demand for our apartments in all our markets leading to high occupancy, increased pricing power and an almost complete absence of new lease concessions. This has driven pricing and Physical Occupancy up so quickly that they now equal or exceed 2019 levels in most of our markets," said Mark J. Parrell, Equity Residential's President and CEO. "Based on these positive indicators, we are pleased to raise our annual same store revenue guidance range to (5%) - (4%) with an expectation that quarter over quarter same store revenue growth could return as early as the fourth quarter of this year."

Highlights

* Strong Physical Occupancy and rapid improvement in other same store operating metrics drove quarterly sequential same store revenue and NOI positive in the second quarter for the first time since the beginning of the pandemic. As a result, the Company raised its annual guidance ranges for same store revenues and NOI, as well as EPS, FFO per share and Normalized FFO per share, and reduced the range for same store expenses. * During the second quarter and July 2021, the Company acquired seven operating properties, consisting of 1,894 apartment units, for an aggregate purchase price of approximately $645.7 million at a weighted average Acquisition Cap Rate of 4.0%. The acquisitions include two properties in Austin, TX and two properties in Atlanta, GA, marking the Company's re-entry into these markets. See the Management Presentation for details. * During the second quarter and July 2021, the Company sold six operating properties, consisting of 866 apartment units, for an aggregate sales price of approximately $434.8 million at a weighted average Disposition Yield of 3.8%. * During the second quarter of 2021, the Company completed the development of one joint venture property, Aero Apartments, consisting of 200 apartment units in the San Francisco market. * The Company continued to collect approximately 97% of its expected Residential revenues in the second quarter of 2021.

Results Per Share

The change in EPS for the quarter ended June 30, 2021 compared to the same period of 2020 is due primarily to higher property sale gains in the second quarter of 2021, the various adjustment items listed on page 26 of this release and the items described below. The change in EPS for the six months ended June 30, 2021 compared to the same period of 2020 is due primarily to lower property sale gains in the first six months of 2021, the various adjustment items listed on page 26 of this release and the items described below.

The per share change in FFO for both the quarter and six months ended June 30, 2021 compared to the same period of 2020 is due primarily to the various adjustment items listed on page 26 of this release and the items described below.

The per share change in Normalized FFO is due primarily to:



Six Months Ended June 30,

2021 2020 $ % Change Change

Earnings Per Share (EPS) $ 1.00 $ 1.53 $ (0.53 ) (34.6 %)

Funds from Operations (FFO) $ 1.45 $ 1.72 $ (0.27 ) (15.7 %) per share

Normalized FFO per share $ 1.40 $ 1.72 $ (0.32 ) (18.6 %)



"Driven by an accelerating economy and the reopening of cities, our operations continue to recover rapidly with robust demand for our apartments in all our markets leading to high occupancy, increased pricing power and an almost complete absence of new lease concessions. This has driven pricing and Physical Occupancy up so quickly that they now equal or exceed 2019 levels in most of our markets," said Mark J. Parrell, Equity Residential's President and CEO. "Based on these positive indicators, we are pleased to raise our annual same store revenue guidance range to (5%) - (4%) with an expectation that quarter over quarter same store revenue growth could return as early as the fourth quarter of this year."

Highlights

* Strong Physical Occupancy and rapid improvement in other same store operating metrics drove quarterly sequential same store revenue and NOI positive in the second quarter for the first time since the beginning of the pandemic. As a result, the Company raised its annual guidance ranges for same store revenues and NOI, as well as EPS, FFO per share and Normalized FFO per share, and reduced the range for same store expenses. * During the second quarter and July 2021, the Company acquired seven operating properties, consisting of 1,894 apartment units, for an aggregate purchase price of approximately $645.7 million at a weighted average Acquisition Cap Rate of 4.0%. The acquisitions include two properties in Austin, TX and two properties in Atlanta, GA, marking the Company's re-entry into these markets. See the Management Presentation for details. * During the second quarter and July 2021, the Company sold six operating properties, consisting of 866 apartment units, for an aggregate sales price of approximately $434.8 million at a weighted average Disposition Yield of 3.8%. * During the second quarter of 2021, the Company completed the development of one joint venture property, Aero Apartments, consisting of 200 apartment units in the San Francisco market. * The Company continued to collect approximately 97% of its expected Residential revenues in the second quarter of 2021.

Results Per Share

The change in EPS for the quarter ended June 30, 2021 compared to the same period of 2020 is due primarily to higher property sale gains in the second quarter of 2021, the various adjustment items listed on page 26 of this release and the items described below. The change in EPS for the six months ended June 30, 2021 compared to the same period of 2020 is due primarily to lower property sale gains in the first six months of 2021, the various adjustment items listed on page 26 of this release and the items described below.

The per share change in FFO for both the quarter and six months ended June 30, 2021 compared to the same period of 2020 is due primarily to the various adjustment items listed on page 26 of this release and the items described below.

The per share change in Normalized FFO is due primarily to:

Positive/(Negative) Impact

Second Quarter June YTD 2021 vs. 2021 vs. Second Quarter June YTD 2020 2020

Residential same store Net Operating Income $ (0.15 ) $ (0.34 )(NOI)

Non-Residential same store NOI 0.01 0.01

2021 and 2020 transaction activity impact on (0.02 ) (0.05 )NOI, net

Interest expense, net 0.04 0.08

Other items, including corporate overhead ^ (0.02 ) (0.02 )(1)

Net $ (0.14 ) $ (0.32 )

(1)

Corporate overhead includes property management and general and administrative expenses.

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 3.8% of total revenues for the six months ended June 30, 2021. The table below reflects same store Residential only results.

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

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 3.8% of total revenues for the six months ended June 30, 2021. The table below reflects same store Residential only results.

Second Quarter Second Quarter June YTD 2021 2021 vs. 2021 vs. vs. Second Quarter First Quarter 2021 June YTD 2020 2020

Apartment 76,556 76,931 76,335 Units

Physical 96.1% vs. 94.9% 96.1% vs. 95.0% 95.5% vs. Occupancy 95.6%



Revenues (8.4%) 0.2% (9.5%)

Expenses 3.4% (4.6%) 3.6%

NOI (13.5%) 2.9% (15.4%)

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 page 12 for detail and reconciliations of Same Store Residential Revenues on a GAAP basis to Same Store Residential Revenues with Leasing Concessions on a cash basis.

Second Quarter Second Quarter June YTD 2021 vs. 2021 vs. 2021 vs. Second Quarter First Quarter June YTD 2020 2021 2020

% Change % Change % Change

Same StoreResidentialRevenues-

comparable period

Lease rates ^(1) (7.5 %) (1.0 %) (7.1 %)

Leasing Concessions (1.8 %) (0.2 %) (1.7 %)^(2)

Vacancy loss 1.6 % 1.1 % 0.3 %

Bad Debt, Net ^(3) (0.5 %) 0.2 % (1.0 %)

Other ^(4) (0.2 %) 0.1 % 0.0 %

Same StoreResidentialRevenues- (8.4 %) 0.2 % (9.5 %)

current period

(1)

The decline in lease rates is driven by the cumulative impact of leasing activity over the past twelve months despite meaningful recent improvements.

(2)

Reflects upfront discounts on both new move-in and renewal leases on a straight-line basis. See page 12 for more detail.

(3)

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

(4)

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

Residential Same Store Operating Statistics

The following table includes select operating metrics for Residential Same Store Properties:

The decline in lease rates is driven by the cumulative impact of leasing(1) activity over the past twelve months despite meaningful recent improvements.

(2) Reflects upfront discounts on both new move-in and renewal leases on a straight-line basis. See page 12 for more detail.

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

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

Residential Same Store Operating Statistics

The following table includes select operating metrics for Residential Same Store Properties:

Q1 2021 Q2 July 2021 2021 (1)

Physical Occupancy ^(2) 95.6% 96.3% 96.4%

Percentage of Residents Renewing by 52.9% 53.2% 55.0% quarter/month



New Lease Change (17.7%) (5.3%) 6.3%

Renewal Rate Achieved (5.2%) 0.2% 3.6%

Blended Rate (12.2%) (2.7%) 4.8%

(1)

July 2021 results are preliminary.

(2)

Physical Occupancy is as of month-end March for Q1 2021, month-end June for Q2 2021 and as of July 22nd for July 2021.

Investment Activity

The Company acquired three properties, consisting of 813 apartment units, during the second quarter of 2021 for an aggregate purchase price of approximately $280.2 million at a weighted average Acquisition Capitalization Rate of 3.9%. The properties are located in Denver, CO, Fairfax, VA and Atlanta, GA. Subsequent to the end of the second quarter, the Company acquired four properties, consisting of 1,081 apartment units, for an aggregate purchase price of approximately $365.5 million at a weighted average Acquisition Capitalization Rate of 4.1%. Two of the properties are located in Austin, TX, one in Atlanta, GA and the other in suburban Boston, MA. Also subsequent to the end of the second quarter, the Company acquired one land parcel in a joint venture for future development, located in Denver, CO, for a purchase price of approximately $4.9 million. The Company did not acquire any properties in the first quarter of 2021, therefore, the year-to-date 2021 acquisition activity is the same as listed above.

The Company sold five properties during the second quarter of 2021, consisting of 795 apartment units, for an aggregate sale price of approximately $409.5 million at a weighted average Disposition Yield of 3.7%, generating an Unlevered IRR of 8.8%. Three of the properties are located in suburban Los Angeles, CA, one in suburban New York, NY and one in suburban Seattle, WA. Subsequent to the end of the second quarter, the Company sold one property, located in suburban San Francisco, CA, consisting of 71 apartment units, for a sale price of approximately $25.3 million, at a Disposition Yield of 4.4%. The Company did not sell any properties during the first quarter of 2021, therefore, the year-to-date 2021 disposition activity is the same as listed above.

"We are making excellent progress in investing capital in Denver and in our new target markets of Atlanta and Austin, while also adding properties in the suburbs of our established coastal markets that are attractive to our affluent renter customer base. We are funding this investment activity by selling older, less desirable or regulatorily challenged assets, especially in California, at pricing that exceeds our pre-pandemic values. We expect little to no dilution from this activity and believe that trading into newer assets in our expansion markets and in suburban locations in our established markets with the same high quality customer base will have both diversification and capital expenditure benefits," said Mr. Parrell.

Third Quarter 2021 Guidance

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

(1) July 2021 results are preliminary.

(2) Physical Occupancy is as of month-end March for Q1 2021, month-end June for Q2 2021 and as of July 22nd for July 2021.

Investment Activity

The Company acquired three properties, consisting of 813 apartment units, during the second quarter of 2021 for an aggregate purchase price of approximately $280.2 million at a weighted average Acquisition Capitalization Rate of 3.9%. The properties are located in Denver, CO, Fairfax, VA and Atlanta, GA. Subsequent to the end of the second quarter, the Company acquired four properties, consisting of 1,081 apartment units, for an aggregate purchase price of approximately $365.5 million at a weighted average Acquisition Capitalization Rate of 4.1%. Two of the properties are located in Austin, TX, one in Atlanta, GA and the other in suburban Boston, MA. Also subsequent to the end of the second quarter, the Company acquired one land parcel in a joint venture for future development, located in Denver, CO, for a purchase price of approximately $4.9 million. The Company did not acquire any properties in the first quarter of 2021, therefore, the year-to-date 2021 acquisition activity is the same as listed above.

The Company sold five properties during the second quarter of 2021, consisting of 795 apartment units, for an aggregate sale price of approximately $409.5 million at a weighted average Disposition Yield of 3.7%, generating an Unlevered IRR of 8.8%. Three of the properties are located in suburban Los Angeles, CA, one in suburban New York, NY and one in suburban Seattle, WA. Subsequent to the end of the second quarter, the Company sold one property, located in suburban San Francisco, CA, consisting of 71 apartment units, for a sale price of approximately $25.3 million, at a Disposition Yield of 4.4%. The Company did not sell any properties during the first quarter of 2021, therefore, the year-to-date 2021 disposition activity is the same as listed above.

"We are making excellent progress in investing capital in Denver and in our new target markets of Atlanta and Austin, while also adding properties in the suburbs of our established coastal markets that are attractive to our affluent renter customer base. We are funding this investment activity by selling older, less desirable or regulatorily challenged assets, especially in California, at pricing that exceeds our pre-pandemic values. We expect little to no dilution from this activity and believe that trading into newer assets in our expansion markets and in suburban locations in our established markets with the same high quality customer base will have both diversification and capital expenditure benefits," said Mr. Parrell.

Third Quarter 2021 Guidance

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

Q3 2021 Guidance

EPS $1.38 to $1.42

FFO per share $0.71 to $0.75

Normalized FFO per share $0.72 to $0.76

The difference between the second quarter 2021 actual EPS of $0.84 and the third quarter of 2021 EPS guidance midpoint of $1.40 is due primarily to higher expected property sale gains and same store NOI, partially offset by lower expected non-operating asset gains.

The difference between the second quarter 2021 actual FFO of $0.78 per share and the third quarter of 2021 FFO guidance midpoint of $0.73 per share is due primarily to lower expected non-operating asset gains, partially offset by higher expected same store NOI.

The difference between the second quarter 2021 actual Normalized FFO of $0.72 per share and the third quarter of 2021 Normalized FFO guidance midpoint of $0.74 per share is due primarily to higher expected same store NOI.

Full Year 2021 Guidance

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

Revised Previous

Same Store (includes Residential and Non-Residential):

Physical Occupancy 95.3% to 96.3% 95.0% to 96.0%

Revenue change (5.0%) to (4.0%) (8.0%) to (6.0%)

Expense change 2.75% to 3.25% 3.0% to 4.0%

NOI change (8.5%) to (7.5%) (13.0%) to (11.0%)



EPS $3.03 to $3.13 $2.57 to $2.67

FFO per share $2.89 to $2.99 $2.67 to $2.77

Normalized FFO per share $2.85 to $2.95 $2.70 to $2.80

The change in the full year 2021 EPS guidance range is due primarily to higher expected property sale gains and same store NOI and higher non-operating asset gains realized in the second quarter of 2021.

The change in the full year 2021 FFO per share guidance range is due primarily to higher expected same store NOI and higher non-operating asset gains realized in the second quarter of 2021.

The change in the full year 2021 Normalized FFO per share guidance range is due primarily to higher expected same store NOI.

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. As of July 26, 2021, Equity Residential owns or has investments in 306 properties consisting of 79,117 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta and Austin. For more information on Equity Residential, please visit our website at www.equityapartments.com.

Forward-Looking Statements

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

A live web cast of the Company's conference call discussing these results will take place tomorrow, Wednesday, July 28, 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)

Six Months Ended June 30, Quarter Ended June 30,

2021 2020 2021 2020

REVENUES

Rental income $ 1,195,661 $ 1,335,837 $ 598,059 $ 653,532



EXPENSES

Property and 224,800 220,268 107,746 104,452 maintenance

Real estate taxes 200,871 192,770 97,401 95,038 and insurance

Property management 50,585 51,317 24,455 23,608

General and 30,061 26,353 14,678 11,835 administrative

Depreciation 400,635 418,398 200,673 205,976

Total expenses 906,952 909,106 444,953 440,909



Net gain (loss) onsales of real 223,695 352,243 223,738 144,266 estate properties



Operating income 512,404 778,974 376,844 356,889



Interest and other 24,320 3,471 24,104 1,511 income

Other expenses (7,452 ) (4,227 ) (3,342 ) (1,694 )

Interest:

Expense incurred, (134,482 ) (167,475 ) (67,124 ) (81,885 )net

Amortization ofdeferred financing (4,124 ) (4,152 ) (1,939 ) (2,111 )costs

Income beforeincome and othertaxes, income(loss) from

investments in 390,666 606,591 328,543 272,710 unconsolidatedentities and netgain (loss)

on sales of landparcels

Income and othertax (expense) (395 ) (240 ) (242 ) (187 )benefit

Income (loss) frominvestments in (1,872 ) (2,199 ) (261 ) (1,042 )unconsolidatedentities

Net gain (loss) onsales of land 5 - - - parcels

Net income 388,404 604,152 328,040 271,481

Net (income) lossattributable to NoncontrollingInterests:

Operating (13,056 ) (21,248 ) (10,913 ) (9,713 )Partnership

Partially Owned (1,423 ) (13,410 ) (741 ) (880 )Properties

Net incomeattributable to 373,925 569,494 316,386 260,888 controllinginterests

Preferred (1,545 ) (1,545 ) (772 ) (772 )distributions

Net incomeavailable to Common $ 372,380 $ 567,949 $ 315,614 $ 260,116 Shares



Earnings per share - basic:

Net incomeavailable to Common $ 1.00 $ 1.53 $ 0.84 $ 0.70 Shares

Weighted averageCommon Shares 373,050 371,689 373,812 371,795 outstanding



Earnings per share - diluted:

Net incomeavailable to Common $ 1.00 $ 1.53 $ 0.84 $ 0.70 Shares

Weighted averageCommon Shares 387,367 386,272 387,820 385,913 outstanding



Distributionsdeclared per Common $ 1.205 $ 1.205 $ 0.6025 $ 0.6025 Share outstanding

Equity Residential

Consolidated Statements of Funds From Operations and Normalized Funds From Operations

(Amounts in thousands except per share data)

(Unaudited)

Six Months Ended June 30,

Quarter Ended June 30,

2021

2020

2021

2020

Net income

$

388,404

$

604,152

$

328,040

$

271,481

Net (income) loss attributable to Noncontrolling Interests - Partially

Owned Properties

(1,423

)

(13,410

)

(741

)

(880

)

Preferred distributions

(1,545

)

(1,545

)

(772

)

(772

)

Net income available to Common Shares and Units

385,436

589,197

326,527

269,829

Adjustments:

Depreciation

400,635

418,398

200,673

205,976

Depreciation - Non-real estate additions

(2,176

)

(2,307

)

(1,076

)

(1,020

)

Depreciation - Partially Owned Properties

(1,682

)

(1,686

)

(854

)

(830

)

Depreciation - Unconsolidated Properties

1,233

1,224

616

611

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

assets

(4

)

-

-

-

Net (gain) loss on sales of real estate properties

(223,695

)

(352,243

)

(223,738

)

(144,266

)

Noncontrolling Interests share of gain (loss) on sales

of real estate properties

-

11,655

-

-

FFO available to Common Shares and Units

559,747

664,238

302,148

330,300

Adjustments (see note for additional detail):

Impairment - non-operating assets

-

-

-

-

Write-off of pursuit costs

2,647

3,278

1,316

1,651

Debt extinguishment and preferred share redemption (gains)

losses

264

32

-

32

Non-operating asset (gains) losses

(23,308

)

670

(24,162

)

229

Other miscellaneous items

3,341

(2,310

)

1,099

(1,392

)

Normalized FFO available to Common Shares and Units

$

542,691

$

665,908

$

280,401

$

330,820

FFO

$

561,292

$

665,783

$

302,920

$

331,072

Preferred distributions

(1,545

)

(1,545

)

(772

)

(772

)

FFO available to Common Shares and Units

$

559,747

$

664,238

$

302,148

$

330,300

FFO per share and Unit - basic

$

1.45

$

1.73

$

0.78

$

0.86

FFO per share and Unit - diluted

$

1.45

$

1.72

$

0.78

$

0.86

Normalized FFO

$

544,236

$

667,453

$

281,173

$

331,592

Preferred distributions

(1,545

)

(1,545

)

(772

)

(772

)

Normalized FFO available to Common Shares and Units

$

542,691

$

665,908

$

280,401

$

330,820

Normalized FFO per share and Unit - basic

$

1.41

$

1.73

$

0.73

$

0.86

Normalized FFO per share and Unit - diluted

$

1.40

$

1.72

$

0.72

$

0.86

Weighted average Common Shares and Units outstanding - basic

385,594

384,702

385,856

384,818

Weighted average Common Shares and Units outstanding - diluted

387,367

386,272

387,820

385,913

Equity Residential

Consolidated Statements of Funds From Operations and Normalized Funds FromOperations

(Amounts in thousands except per share data)

(Unaudited)

Six Months Ended June 30, Quarter Ended June 30,

2021 2020 2021 2020

Net income $ 388,404 $ 604,152 $ 328,040 $ 271,481

Net (income) lossattributable toNoncontrollingInterests - (1,423 ) (13,410 ) (741 ) (880 )Partially

Owned Properties

Preferred (1,545 ) (1,545 ) (772 ) (772 )distributions

Net incomeavailable to Common 385,436 589,197 326,527 269,829 Shares and Units



Adjustments:

Depreciation 400,635 418,398 200,673 205,976

Depreciation -Non-real estate (2,176 ) (2,307 ) (1,076 ) (1,020 )additions

Depreciation -Partially Owned (1,682 ) (1,686 ) (854 ) (830 )Properties

Depreciation -Unconsolidated 1,233 1,224 616 611 Properties

Net (gain) loss onsales ofunconsolidatedentities - (4 ) - - - operating

assets

Net (gain) loss onsales of real (223,695 ) (352,243 ) (223,738 ) (144,266 )estate properties

NoncontrollingInterests share ofgain (loss) onsales - 11,655 - -

of real estateproperties

FFO available toCommon Shares and 559,747 664,238 302,148 330,300 Units



Adjustments (seenote for additional detail):

Impairment -non-operating - - - - assets

Write-off of 2,647 3,278 1,316 1,651 pursuit costs

Debt extinguishmentand preferred shareredemption (gains) 264 32 - 32

losses

Non-operating asset (23,308 ) 670 (24,162 ) 229 (gains) losses

Other miscellaneous 3,341 (2,310 ) 1,099 (1,392 )items

Normalized FFOavailable to Common $ 542,691 $ 665,908 $ 280,401 $ 330,820 Shares and Units



FFO $ 561,292 $ 665,783 $ 302,920 $ 331,072

Preferred (1,545 ) (1,545 ) (772 ) (772 )distributions

FFO available toCommon Shares and $ 559,747 $ 664,238 $ 302,148 $ 330,300 Units

FFO per share and $ 1.45 $ 1.73 $ 0.78 $ 0.86 Unit - basic

FFO per share and $ 1.45 $ 1.72 $ 0.78 $ 0.86 Unit - diluted



Normalized FFO $ 544,236 $ 667,453 $ 281,173 $ 331,592

Preferred (1,545 ) (1,545 ) (772 ) (772 )distributions

Normalized FFOavailable to Common $ 542,691 $ 665,908 $ 280,401 $ 330,820 Shares and Units

Normalized FFO pershare and Unit - $ 1.41 $ 1.73 $ 0.73 $ 0.86 basic

Normalized FFO pershare and Unit - $ 1.40 $ 1.72 $ 0.72 $ 0.86 diluted



Weighted averageCommon Shares and 385,594 384,702 385,856 384,818 Units outstanding -basic

Weighted averageCommon Shares and 387,367 386,272 387,820 385,913 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.

Note: See Adjustments from FFO to Normalized FFO for additional detailregarding the adjustments from FFO to Normalized FFO. See AdditionalReconciliations and Definitions of Non-GAAP Financial Measures and Other Termsfor the definitions of non-GAAP financial measures and other terms as well asthe reconciliations of EPS to FFO per share and Normalized FFO per share.

Equity Residential

Consolidated Balance Sheets

(Amounts in thousands except for share amounts)

(Unaudited)

June 30,

December 31,

2021

2020

ASSETS

Land

$

5,780,705

$

5,785,367

Depreciable property

21,161,984

20,920,654

Projects under development

372,243

411,134

Land held for development

90,446

86,170

Investment in real estate

27,405,378

27,203,325

Accumulated depreciation

(8,164,287

)

(7,859,657

)

Investment in real estate, net

19,241,091

19,343,668

Investments in unconsolidated entities

53,364

52,782

Cash and cash equivalents

39,492

42,591

Restricted deposits

353,009

57,137

Right-of-use assets

480,671

499,287

Other assets

296,719

291,426

Total assets

$

20,464,346

$

20,286,891

LIABILITIES AND EQUITY

Liabilities:

Mortgage notes payable, net

$

2,280,251

$

2,293,890

Notes, net

5,338,671

5,335,536

Line of credit and commercial paper

631,770

414,830

Accounts payable and accrued expenses

114,288

107,366

Accrued interest payable

65,814

65,896

Lease liabilities

314,379

329,130

Other liabilities

341,817

345,064

Security deposits

62,228

60,480

Distributions payable

232,958

232,262

Total liabilities

9,382,176

9,184,454

Commitments and contingencies

Redeemable Noncontrolling Interests - Operating Partnership

440,123

338,951

Equity:

Shareholders' equity:

Preferred Shares of beneficial interest, $0.01 par value;

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

outstanding as of June 30, 2021 and December 31, 2020

37,280

37,280

Common Shares of beneficial interest, $0.01 par value;

1,000,000,000 shares authorized; 374,354,830 shares issued

and outstanding as of June 30, 2021 and 372,302,000

shares issued and outstanding as of December 31, 2020

3,744

3,723

Paid in capital

9,110,121

9,128,599

Retained earnings

1,321,875

1,399,715

Accumulated other comprehensive income (loss)

(39,029

)

(43,666

)

Total shareholders' equity

10,433,991

10,525,651

Noncontrolling Interests:

Operating Partnership

205,691

233,162

Partially Owned Properties

2,365

4,673

Total Noncontrolling Interests

208,056

237,835

Total equity

10,642,047

10,763,486

Total liabilities and equity

$

20,464,346

$

20,286,891

Equity Residential

Consolidated Balance Sheets

(Amounts in thousands except for share amounts)

(Unaudited)

June 30, December 31,

2021 2020

ASSETS

Land $ 5,780,705 $ 5,785,367

Depreciable property 21,161,984 20,920,654

Projects under development 372,243 411,134

Land held for development 90,446 86,170

Investment in real estate 27,405,378 27,203,325

Accumulated depreciation (8,164,287 ) (7,859,657 )

Investment in real estate, net 19,241,091 19,343,668

Investments in unconsolidated entities 53,364 52,782

Cash and cash equivalents 39,492 42,591

Restricted deposits 353,009 57,137

Right-of-use assets 480,671 499,287

Other assets 296,719 291,426

Total assets $ 20,464,346 $ 20,286,891



LIABILITIES AND EQUITY

Liabilities:

Mortgage notes payable, net $ 2,280,251 $ 2,293,890

Notes, net 5,338,671 5,335,536

Line of credit and commercial paper 631,770 414,830

Accounts payable and accrued expenses 114,288 107,366

Accrued interest payable 65,814 65,896

Lease liabilities 314,379 329,130

Other liabilities 341,817 345,064

Security deposits 62,228 60,480

Distributions payable 232,958 232,262

Total liabilities 9,382,176 9,184,454



Commitments and contingencies



Redeemable Noncontrolling Interests - Operating 440,123 338,951 Partnership

Equity:

Shareholders' equity:

Preferred Shares of beneficial interest, $0.01par value;

100,000,000 shares authorized; 745,600 shares 37,280 37,280 issued and

outstanding as of June 30, 2021 and December31, 2020

Common Shares of beneficial interest, $0.01 parvalue;

1,000,000,000 shares authorized; 374,354,830shares issued 3,744 3,723 and outstanding as of June 30, 2021 and372,302,000

shares issued and outstanding as of December31, 2020

Paid in capital 9,110,121 9,128,599

Retained earnings 1,321,875 1,399,715

Accumulated other comprehensive income (loss) (39,029 ) (43,666 )

Total shareholders' equity 10,433,991 10,525,651

Noncontrolling Interests:

Operating Partnership 205,691 233,162

Partially Owned Properties 2,365 4,673

Total Noncontrolling Interests 208,056 237,835

Total equity 10,642,047 10,763,486

Total liabilities and equity $ 20,464,346 $ 20,286,891

Equity Residential

Portfolio Summary

As of June 30, 2021

Equity Residential

Portfolio Summary

As of June 30, 2021

% of

Stabilized

Average

Apartment

Budgeted

Rental

Markets/Metro Areas

Properties

Units

NOI

Rate

Established Markets:

Los Angeles

69

16,193

20.8

%

$

2,400

Orange County

13

4,028

5.4

%

2,255

San Diego

11

2,706

3.8

%

2,408

Subtotal - Southern California

93

22,927

30.0

%

2,375

San Francisco

49

12,907

18.6

%

2,836

Washington DC

48

14,944

17.4

%

2,311

Seattle

45

9,332

11.3

%

2,207

New York

36

9,343

11.1

%

3,405

Boston

25

6,430

9.4

%

2,826

Expansion Markets:

Denver

6

1,904

1.9

%

2,011

Atlanta

1

320

0.3

%

1,960

Total

303

78,107

100.0

%

$

2,567

% of Average Stabilized

Apartment Budgeted Rental

Markets/Metro Areas Properties Units NOI Rate



Established Markets:

Los Angeles 69 16,193 20.8 % $ 2,400

Orange County 13 4,028 5.4 % 2,255

San Diego 11 2,706 3.8 % 2,408

Subtotal - Southern 93 22,927 30.0 % 2,375 California



San Francisco 49 12,907 18.6 % 2,836

Washington DC 48 14,944 17.4 % 2,311

Seattle 45 9,332 11.3 % 2,207

New York 36 9,343 11.1 % 3,405

Boston 25 6,430 9.4 % 2,826



Expansion Markets:

Denver 6 1,904 1.9 % 2,011

Atlanta 1 320 0.3 % 1,960



Total 303 78,107 100.0 % $ 2,567

Properties

Apartment Units

Wholly Owned Properties

286

74,468

Master-Leased Properties - Consolidated

1

162

Partially Owned Properties - Consolidated

16

3,477

303

78,107

Properties Apartment Units



Wholly Owned Properties 286 74,468

Master-Leased Properties - Consolidated 1 162

Partially Owned Properties - Consolidated 16 3,477



303 78,107

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

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

Equity Residential

Equity Residential

Portfolio Rollforward

($ in thousands)

Properties

Apartment

Units

Purchase

Price

Acquisition

Cap Rate

12/31/2020 and 3/31/2021

304

77,889

Acquisitions:

Consolidated Rental Properties

2

533

$

185,000

3.9

%

Consolidated Rental Properties - Not Stabilized (A)

1

280

$

95,200

4.1

%

Sales Price

Disposition

Yield

Dispositions:

Consolidated Rental Properties

(5

)

(795

)

$

(409,500

)

(3.7

%)

Completed Developments - Consolidated

1

200

6/30/2021

303

78,107

Portfolio Rollforward

($ in thousands)

Apartment Purchase Acquisition Properties Units Price Cap Rate



12/31/2020 and 3/31/ 304 77,889 2021



Acquisitions:

ConsolidatedRental 2 533 $ 185,000 3.9 %Properties

Consolidated RentalProperties - Not 1 280 $ 95,200 4.1 %Stabilized (A)



Sales Disposition Price Yield



Dispositions:

ConsolidatedRental (5 ) (795 ) $ (409,500 ) (3.7 %)Properties



CompletedDevelopments - 1 200 Consolidated



6/30 / 303 78,107 2021

(A)

The Company acquired one property in the Denver market in the second quarter of 2021 that is in lease-up and is expected to stabilize in its second year of ownership at the Acquisition Cap Rate listed above.

Note:The Company did not acquire or sell any assets during the first quarter of 2021.

The Company acquired one property in the Denver market in the second(A) quarter of 2021 that is in lease-up and is expected to stabilize in its second year of ownership at the Acquisition Cap Rate listed above.

The Company did not acquire or sell any assets during the first quarterNote: of 2021.

Equity Residential

Equity Residential

Second Quarter 2021 vs. Second Quarter 2020

Same Store Results/Statistics Including 76,556 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

Second Quarter 2021

Second Quarter 2020

Residential

% Change

Non-

Residential

% Change

Total

% Change

Residential

Non-

Residential

Total

Revenues

$

567,856

(1)

(8.4%)

$

21,152

(2)

43.8%

$

589,008

(7.2%)

Revenues

$

619,684

$

14,709

$

634,393

Expenses

$

195,129

3.4%

$

6,078

18.0%

$

201,207

3.8%

Expenses

$

188,770

$

5,150

$

193,920

NOI

$

372,727

(13.5%)

$

15,074

57.7%

$

387,801

(12.0%)

NOI

$

430,914

$

9,559

$

440,473

Average Rental Rate

$

2,574

(9.5%)

Average Rental Rate

$

2,845

Physical Occupancy

96.1

%

1.2%

Physical Occupancy

94.9

%

Turnover

11.3

%

(0.5%)

Turnover

11.8

%

Second Quarter 2021 vs. Second Quarter 2020

Same Store Results/Statistics Including 76,556 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

Second Quarter 2021 Second Quarter 2020

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



Revenues $ 567,856 (1) (8.4%) $ 21,152 (2) 43.8% $ 589,008 (7.2%) Revenues $ 619,684 $ 14,709 $ 634,393

Expenses $ 195,129 3.4% $ 6,078 18.0% $ 201,207 3.8% Expenses $ 188,770 $ 5,150 $ 193,920

NOI $ 372,727 (13.5%) $ 15,074 57.7% $ 387,801 (12.0%) NOI $ 430,914 $ 9,559 $ 440,473



Average $ 2,574 (9.5%) Average $ 2,845 Rental Rate Rental Rate

Physical 96.1 % 1.2% Physical 94.9 % Occupancy Occupancy

Turnover 11.3 % (0.5%) Turnover 11.8 %

Second Quarter 2021 vs. First Quarter 2021

Same Store Results/Statistics Including 76,931 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

Second Quarter 2021

First Quarter 2021

Residential

% Change

Non-

Residential

% Change

Total

% Change

Residential

Non-

Residential

Total

Revenues

$

569,853

(1)

0.2%

$

21,184

(2)

(2.4%)

$

591,037

0.1%

Revenues

$

568,807

$

21,713

$

590,520

Expenses

$

195,707

(4.6%)

$

6,079

0.8%

$

201,786

(4.4%)

Expenses

$

205,058

$

6,033

$

211,091

NOI

$

374,146

2.9%

$

15,105

(3.7%)

$

389,251

2.6%

NOI

$

363,749

$

15,680

$

379,429

Average Rental Rate

$

2,571

(1.0%)

Average Rental Rate

$

2,596

Physical Occupancy

96.1

%

1.1%

Physical Occupancy

95.0

%

Turnover

11.4

%

1.4%

Turnover

10.0

%

Second Quarter 2021 vs. First Quarter 2021

Same Store Results/Statistics Including 76,931 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

Second Quarter 2021 First Quarter 2021

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



Revenues $ 569,853 (1) 0.2% $ 21,184 (2) (2.4%) $ 591,037 0.1% Revenues $ 568,807 $ 21,713 $ 590,520

Expenses $ 195,707 (4.6%) $ 6,079 0.8% $ 201,786 (4.4%) Expenses $ 205,058 $ 6,033 $ 211,091

NOI $ 374,146 2.9% $ 15,105 (3.7%) $ 389,251 2.6% NOI $ 363,749 $ 15,680 $ 379,429



Average $ 2,571 (1.0%) Average $ 2,596 Rental Rate Rental Rate

Physical 96.1 % 1.1% Physical 95.0 % Occupancy Occupancy

Turnover 11.4 % 1.4% Turnover 10.0 %

June YTD 2021 vs. June YTD 2020

Same Store Results/Statistics Including 76,335 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

June YTD 2021

June YTD 2020

Residential

% Change

Non-

Residential

% Change

Total

% Change

Residential

Non-

Residential

Total

Revenues

$

1,131,724

(1)

(9.5%)

$

42,839

(2)

13.3%

$

1,174,563

(8.9%)

Revenues

$

1,250,911

$

37,821

$

1,288,732

Expenses

$

398,834

3.6%

$

12,106

10.2%

$

410,940

3.8%

Expenses

$

384,969

$

10,983

$

395,952

NOI

$

732,890

(15.4%)

$

30,733

14.5%

$

763,623

(14.5%)

NOI

$

865,942

$

26,838

$

892,780

Average Rental Rate

$

2,588

(9.4%)

Average Rental Rate

$

2,857

Physical Occupancy

95.5

%

(0.1%)

Physical Occupancy

95.6

%

Turnover

21.3

%

(0.3%)

Turnover

21.6

%

June YTD 2021 vs. June YTD 2020

Same Store Results/Statistics Including 76,335 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

June YTD 2021 June YTD 2020

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



Revenues $ 1,131,724 (1) (9.5%) $ 42,839 (2) 13.3% $ 1,174,563 (8.9%) Revenues $ 1,250,911 $ 37,821 $ 1,288,732

Expenses $ 398,834 3.6% $ 12,106 10.2% $ 410,940 3.8% Expenses $ 384,969 $ 10,983 $ 395,952

NOI $ 732,890 (15.4%) $ 30,733 14.5% $ 763,623 (14.5%) NOI $ 865,942 $ 26,838 $ 892,780



Average AverageRental $ 2,588 (9.4%) Rental $ 2,857 Rate Rate

Physical 95.5 % (0.1%) Physical 95.6 % Occupancy Occupancy

Turnover 21.3 % (0.3%) Turnover 21.6 %

(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:

? Second Quarter 2021 vs. Second Quarter 2020 - Primarily lower deferral/abatement of rents, lower bad debt and higher parking income.

? Second Quarter 2021 vs. First Quarter 2021 - Primarily lower early lease termination settlement income from retail tenants.

? June YTD 2021 vs. June YTD 2020 - Primarily lower bad debt and higher parking income.

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:

? Second Quarter 2021 vs. Second Quarter 2020 - Primarily lower deferral/ abatement of rents, lower bad debt and higher parking income.

? Second Quarter 2021 vs. First Quarter 2021 - Primarily lower early lease termination settlement income from retail tenants.

? June YTD 2021 vs. June YTD 2020 - Primarily lower bad debt and higher parking income.

Equity Residential

Equity Residential

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

$ in thousands

Second Quarter 2021 vs. Second Quarter 2020

Second Quarter 2021 vs. First Quarter 2021

June YTD 2021 vs. June YTD 2020

76,556 Same Store Apartment Units

76,931 Same Store Apartment Units

76,335 Same Store Apartment Units

Q2 2021

Q2 2020

Q2 2021

Q1 2021

June YTD 2021

June YTD 2020

Same Store Residential Revenues (GAAP Basis)

$

567,856

$

619,684

$

569,853

$

568,807

$

1,131,724

$

1,250,911

Leasing Concessions amortized

13,081

1,623

13,184

11,771

24,644

2,693

Leasing Concessions granted (2)

(8,218

)

(2,741

)

(8,298

)

(17,140

)

(25,170

)

(4,633

)

Same Store Residential Revenues with Leasing

Concessions on a cash basis

$

572,719

$

618,566

$

574,739

$

563,438

$

1,131,198

$

1,248,971

% change - GAAP revenue

(8.4

%)

0.2

%

(9.5

%)

% change - cash revenue

(7.4

%)

2.0

%

(9.4

%)

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

$ in thousands

Second Quarter 2021 vs. Second Quarter 2021 vs. June YTD 2021 vs. June YTD Second Quarter 2020 First Quarter 2021 2020

76,556 Same Store 76,931 Same Store 76,335 Same Store Apartment Apartment Units Apartment Units Units

Q2 2021 Q2 2020 Q2 2021 Q1 2021 June YTD June YTD 2021 2020

Same StoreResidential $ 567,856 $ 619,684 $ 569,853 $ 568,807 $ 1,131,724 $ 1,250,911 Revenues(GAAP Basis)

LeasingConcessions 13,081 1,623 13,184 11,771 24,644 2,693 amortized

LeasingConcessions (8,218 ) (2,741 ) (8,298 ) (17,140 ) (25,170 ) (4,633 )granted ^(2)

Same StoreResidentialRevenues withLeasing $ 572,719 $ 618,566 $ 574,739 $ 563,438 $ 1,131,198 $ 1,248,971

Concessionson a cashbasis



% change - (8.4 %) 0.2 % (9.5 %) GAAP revenue



% change - (7.4 %) 2.0 % (9.4 %) cash revenue

(1)

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

(2)

Monthly Leasing Concessions granted continue to decline. Leasing Concessions granted in June and July (preliminary) 2021 are $2.0 million and $1.5 million, respectively, which are down from their peak of $6.1 million per month in February 2021.

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



Monthly Leasing Concessions granted continue to decline. Leasing(2) Concessions granted in June and July (preliminary) 2021 are $2.0 million and $1.5 million, respectively, which are down from their peak of $6.1 million per month in February 2021.

Same Store Resident/Tenant Accounts Receivable Balances

Including 76,335 Same Store Apartment Units

$ in thousands

Residential

Non-Residential

Balance Sheet (Other assets):

June 30, 2021

March 31, 2021

June 30, 2021

March 31, 2021

Resident/tenant accounts receivable balances

$

43,793

$

37,420

$

6,035

$

6,499

Allowance for doubtful accounts

(38,803

)

(31,453

)

(5,232

)

(5,669

)

Net receivable balances

$

4,990

(1)

$

5,967

$

803

$

830

Straight-line receivable balances

$

20,204

(2)

$

25,028

$

12,780

$

13,306

Same Store Resident/Tenant Accounts Receivable Balances

Including 76,335 Same Store Apartment Units

$ in thousands

Residential Non-Residential

Balance Sheet (Other June 30, March 31, June 30, March assets): 2021 2021 2021 31, 2021

Resident/tenant accounts $ 43,793 $ 37,420 $ 6,035 $ 6,499 receivable balances

Allowance for doubtful (38,803 ) (31,453 ) (5,232 ) (5,669 )accounts

Net receivable balances $ 4,990 (1) $ 5,967 $ 803 $ 830



Straight-line $ 20,204 (2) $ 25,028 $ 12,780 $ 13,306 receivable balances

(1)

The Company held same store Residential security deposits approximating 42.3% of the net receivable balance at June 30, 2021.

(2)

Total same store Residential Leasing Concessions granted in the second quarter of 2021 were approximately $8.2 million. The straight-line receivable balance of $20.2 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues for the remainder of 2021 and the first half of 2022.

(1) The Company held same store Residential security deposits approximating 42.3% of the net receivable balance at June 30, 2021.



Total same store Residential Leasing Concessions granted in the second quarter of 2021 were approximately $8.2 million. The straight-line(2) receivable balance of $20.2 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues for the remainder of 2021 and the first half of 2022.

Same Store Residential Bad Debt

Including 76,335 Same Store Apartment Units

$ in thousands

Income Statement (Rental income):

Q2 2021

Q1 2021

Q2 2020

Bad Debt, Net

$

12,215

$

13,593

$

9,403

% of Same Store Residential Revenues

2.2

%

2.4

%

1.5

%

Same Store Residential Bad Debt

Including 76,335 Same Store Apartment Units

$ in thousands



Income Statement (Rental income): Q2 2021 Q1 2021 Q2 2020

Bad Debt, Net $ 12,215 $ 13,593 $ 9,403

% of Same Store Residential Revenues 2.2 % 2.4 % 1.5 %

Equity Residential

Second Quarter 2021 vs. Second Quarter 2020

Same Store Residential Results/Statistics by Market

Equity Residential

Second Quarter 2021 vs. Second Quarter 2020

Same Store Residential Results/Statistics by Market

Increase (Decrease) from Prior Year's Quarter

Markets/Metro Areas

Apartment

Units

Q2 2021

% of

Actual

NOI

Q2 2021

Average

Rental

Rate

Q2 2021

Weighted

Average

Physical

Occupancy %

Q2 2021

Turnover

Revenues

Expenses

NOI

Average

Rental

Rate

Physical

Occupancy

Turnover

Los Angeles

16,193

20.4

%

$

2,400

96.5

%

10.6

%

(4.8

%)

2.6

%

(8.0

%)

(6.5

%)

1.8

%

(1.4

%)

Orange County

4,028

5.5

%

2,255

97.9

%

8.3

%

1.3

%

3.6

%

0.6

%

(0.3

%)

1.6

%

(1.5

%)

San Diego

2,706

3.9

%

2,408

98.2

%

10.1

%

3.2

%

2.2

%

3.6

%

1.7

%

1.5

%

(0.2

%)

Subtotal - Southern California

22,927

29.8

%

2,375

96.9

%

10.1

%

(2.9

%)

2.7

%

(5.1

%)

(4.6

%)

1.7

%

(1.3

%)

San Francisco

12,707

19.1

%

2,825

95.3

%

11.4

%

(14.5

%)

3.8

%

(20.6

%)

(14.9

%)

0.5

%

(0.3

%)

Washington DC

14,569

17.7

%

2,316

96.3

%

12.0

%

(4.8

%)

3.1

%

(8.2

%)

(5.8

%)

0.9

%

0.7

%

New York

9,343

11.6

%

3,405

95.2

%

10.1

%

(13.0

%)

3.7

%

(26.1

%)

(14.0

%)

1.2

%

(1.6

%)

Seattle

8,956

10.3

%

2,221

95.7

%

13.7

%

(10.2

%)

3.0

%

(15.5

%)

(10.5

%)

0.4

%

2.1

%

Boston

6,430

9.6

%

2,826

96.0

%

11.8

%

(8.5

%)

5.1

%

(13.7

%)

(10.9

%)

2.5

%

(1.8

%)

Denver

1,624

1.9

%

2,015

97.0

%

15.3

%

1.5

%

0.9

%

1.7

%

(1.6

%)

2.9

%

(1.8

%)

Total

76,556

100.0

%

$

2,574

96.1

%

11.3

%

(8.4

%)

(1)

3.4

%

(13.5

%)

(9.5

%)

1.2

%

(0.5

%)

Increase (Decrease) from Prior Year's Quarter

Q2 2021 Q2 2021 Q2 2021 Weighted Average Apartment % of Average Q2 2021 PhysicalMarkets/Metro Areas Average Revenues Expenses NOI Rental Turnover Units Actual Rental Turnover Occupancy Physical Rate NOI Rate Occupancy %



Los Angeles 16,193 20.4 % $ 2,400 96.5 % 10.6 % (4.8 %) 2.6 % (8.0 %) (6.5 %) 1.8 % (1.4 %)

Orange County 4,028 5.5 % 2,255 97.9 % 8.3 % 1.3 % 3.6 % 0.6 % (0.3 %) 1.6 % (1.5 %)

San Diego 2,706 3.9 % 2,408 98.2 % 10.1 % 3.2 % 2.2 % 3.6 % 1.7 % 1.5 % (0.2 %)

Subtotal - Southern 22,927 29.8 % 2,375 96.9 % 10.1 % (2.9 %) 2.7 % (5.1 %) (4.6 %) 1.7 % (1.3 %)California



San Francisco 12,707 19.1 % 2,825 95.3 % 11.4 % (14.5 %) 3.8 % (20.6 %) (14.9 %) 0.5 % (0.3 %)

Washington DC 14,569 17.7 % 2,316 96.3 % 12.0 % (4.8 %) 3.1 % (8.2 %) (5.8 %) 0.9 % 0.7 %

New York 9,343 11.6 % 3,405 95.2 % 10.1 % (13.0 %) 3.7 % (26.1 %) (14.0 %) 1.2 % (1.6 %)

Seattle 8,956 10.3 % 2,221 95.7 % 13.7 % (10.2 %) 3.0 % (15.5 %) (10.5 %) 0.4 % 2.1 %

Boston 6,430 9.6 % 2,826 96.0 % 11.8 % (8.5 %) 5.1 % (13.7 %) (10.9 %) 2.5 % (1.8 %)

Denver 1,624 1.9 % 2,015 97.0 % 15.3 % 1.5 % 0.9 % 1.7 % (1.6 %) 2.9 % (1.8 %)



Total 76,556 100.0 % $ 2,574 96.1 % 11.3 % (8.4 %) (1) 3.4 % (13.5 %) (9.5 %) 1.2 % (0.5 %)

(1)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 7.4% in the second quarter of 2021 compared to the second 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 96.2% of total revenues for the six months ended June 30, 2021.

With Leasing Concessions reflected on a cash basis, Same Store Residential(1) Revenues decreased 7.4% in the second quarter of 2021 compared to the second quarter of 2020. See page 12 for additional detail and reconciliations.



The above table reflects Residential same store results only. ResidentialNote operations account for approximately 96.2% of total revenues for the six months ended June 30, 2021.

Equity Residential

Second Quarter 2021 vs. First Quarter 2021

Same Store Residential Results/Statistics by Market

Equity Residential

Second Quarter 2021 vs. First Quarter 2021

Same Store Residential Results/Statistics by Market

Increase (Decrease) from Prior Quarter

Markets/Metro Areas

Apartment

Units

Q2 2021

% of

Actual

NOI

Q2 2021

Average

Rental

Rate

Q2 2021

Weighted

Average

Physical

Occupancy %

Q2 2021

Turnover

Revenues

Expenses

NOI

Average

Rental

Rate

Physical

Occupancy

Turnover

Los Angeles

16,193

20.3

%

$

2,400

96.5

%

10.6

%

0.5

%

(3.6

%)

2.7

%

(0.2

%)

0.7

%

0.5

%

Orange County

4,028

5.5

%

2,255

97.9

%

8.3

%

3.2

%

(3.4

%)

5.4

%

2.3

%

0.9

%

0.5

%

San Diego

2,706

3.9

%

2,408

98.2

%

10.1

%

2.4

%

(2.0

%)

3.8

%

1.3

%

1.0

%

(0.4

%)

Subtotal - Southern California

22,927

29.7

%

2,375

96.9

%

10.1

%

1.2

%

(3.5

%)

3.3

%

0.4

%

0.8

%

0.3

%

San Francisco

12,707

19.1

%

2,825

95.3

%

11.4

%

(1.1

%)

(4.4

%)

0.4

%

(2.7

%)

1.5

%

0.0

%

Washington DC

14,569

17.7

%

2,316

96.3

%

12.0

%

0.0

%

(5.0

%)

2.6

%

(0.4

%)

0.4

%

2.3

%

New York

9,343

11.5

%

3,405

95.2

%

10.1

%

1.4

%

(5.3

%)

10.0

%

(2.8

%)

3.9

%

1.8

%

Seattle

9,331

10.7

%

2,207

95.6

%

13.7

%

(1.7

%)

(1.9

%)

(1.6

%)

(1.8

%)

0.0

%

2.5

%

Boston

6,430

9.5

%

2,826

96.0

%

11.8

%

(0.2

%)

(6.6

%)

3.0

%

(0.9

%)

0.7

%

2.9

%

Denver

1,624

1.8

%

2,015

97.0

%

15.3

%

2.4

%

(12.9

%)

9.8

%

1.5

%

0.9

%

3.0

%

Total

76,931

100.0

%

$

2,571

96.1

%

11.4

%

0.2

%

(1)

(4.6

%)

2.9

%

(1.0

%)

1.1

%

1.4

%

Increase (Decrease) from Prior Quarter

Q2 2021 Q2 2021 Q2 2021 Weighted Average Apartment % of Average Q2 2021 PhysicalMarkets/Metro Areas Average Revenues Expenses NOI Rental Turnover Units Actual Rental Turnover Occupancy Physical Rate NOI Rate Occupancy %



Los Angeles 16,193 20.3 % $ 2,400 96.5 % 10.6 % 0.5 % (3.6 %) 2.7 % (0.2 %) 0.7 % 0.5 %

Orange County 4,028 5.5 % 2,255 97.9 % 8.3 % 3.2 % (3.4 %) 5.4 % 2.3 % 0.9 % 0.5 %

San Diego 2,706 3.9 % 2,408 98.2 % 10.1 % 2.4 % (2.0 %) 3.8 % 1.3 % 1.0 % (0.4 %)

Subtotal - Southern 22,927 29.7 % 2,375 96.9 % 10.1 % 1.2 % (3.5 %) 3.3 % 0.4 % 0.8 % 0.3 %California



San Francisco 12,707 19.1 % 2,825 95.3 % 11.4 % (1.1 %) (4.4 %) 0.4 % (2.7 %) 1.5 % 0.0 %

Washington DC 14,569 17.7 % 2,316 96.3 % 12.0 % 0.0 % (5.0 %) 2.6 % (0.4 %) 0.4 % 2.3 %

New York 9,343 11.5 % 3,405 95.2 % 10.1 % 1.4 % (5.3 %) 10.0 % (2.8 %) 3.9 % 1.8 %

Seattle 9,331 10.7 % 2,207 95.6 % 13.7 % (1.7 %) (1.9 %) (1.6 %) (1.8 %) 0.0 % 2.5 %

Boston 6,430 9.5 % 2,826 96.0 % 11.8 % (0.2 %) (6.6 %) 3.0 % (0.9 %) 0.7 % 2.9 %

Denver 1,624 1.8 % 2,015 97.0 % 15.3 % 2.4 % (12.9 %) 9.8 % 1.5 % 0.9 % 3.0 %



Total 76,931 100.0 % $ 2,571 96.1 % 11.4 % 0.2 % (1) (4.6 %) 2.9 % (1.0 %) 1.1 % 1.4 %

(1)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 2.0% in the second quarter of 2021 compared to the first quarter of 2021. See page 12 for additional detail and reconciliations.

Note:

The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the six months ended June 30, 2021.

With Leasing Concessions reflected on a cash basis, Same Store(1) Residential Revenues increased 2.0% in the second quarter of 2021 compared to the first quarter of 2021. See page 12 for additional detail and reconciliations.



The above table reflects Residential same store results only. ResidentialNote: operations account for approximately 96.2% of total revenues for the six months ended June 30, 2021.

Equity Residential

June YTD 2021 vs. June YTD 2020

Same Store Residential Results/Statistics by Market

Equity Residential

June YTD 2021 vs. June YTD 2020

Same Store Residential Results/Statistics by Market

Increase (Decrease) from Prior Year

Markets/Metro Areas

Apartment

Units

June YTD 21

% of

Actual

NOI

June YTD 21

Average

Rental

Rate

June YTD 21

Weighted

Average

Physical

Occupancy %

June YTD 21

Turnover

Revenues

Expenses

NOI

Average

Rental

Rate

Physical

Occupancy

Turnover

Los Angeles

16,193

20.4

%

$

2,402

96.1

%

20.7

%

(6.5

%)

1.8

%

(10.2

%)

(7.3

%)

0.7

%

(2.4

%)

Orange County

4,028

5.5

%

2,230

97.4

%

16.1

%

(1.0

%)

3.1

%

(2.2

%)

(1.8

%)

0.8

%

(2.7

%)

San Diego

2,706

3.9

%

2,392

97.7

%

20.5

%

1.5

%

1.7

%

1.5

%

0.5

%

1.0

%

(1.2

%)

Subtotal - Southern California

22,927

29.8

%

2,370

96.5

%

19.9

%

(4.7

%)

1.9

%

(7.4

%)

(5.5

%)

0.8

%

(2.3

%)

San Francisco

12,707

19.4

%

2,864

94.6

%

22.8

%

(15.1

%)

4.3

%

(21.6

%)

(14.0

%)

(1.2

%)

1.4

%

Washington DC

14,569

17.8

%

2,320

96.1

%

21.6

%

(5.1

%)

3.5

%

(8.9

%)

(5.5

%)

0.3

%

1.7

%

New York

9,343

11.2

%

3,453

93.2

%

18.4

%

(15.1

%)

4.0

%

(30.4

%)

(13.2

%)

(2.1

%)

(0.6

%)

Seattle

8,819

10.5

%

2,244

95.7

%

24.7

%

(10.3

%)

4.4

%

(16.0

%)

(9.8

%)

(0.5

%)

1.8

%

Boston

6,346

9.5

%

2,839

95.6

%

20.6

%

(9.7

%)

5.0

%

(15.5

%)

(10.7

%)

0.9

%

(2.1

%)

Denver

1,624

1.8

%

2,000

96.6

%

27.5

%

(0.6

%)

5.3

%

(3.0

%)

(2.5

%)

1.8

%

(4.0

%)

Total

76,335

100.0

%

$

2,588

95.5

%

21.3

%

(9.5

%)

(1)

3.6

%

(15.4

%)

(9.4

%)

(0.1

%)

(0.3

%)

Increase (Decrease) from Prior Year

June YTD June YTD June YTD 21 21 21 Weighted June YTD Average Apartment % of Average 21 PhysicalMarkets/Metro Areas Average Revenues Expenses NOI Rental Turnover Units Actual Rental Turnover Occupancy Physical Rate NOI Rate Occupancy %



Los Angeles 16,193 20.4 % $ 2,402 96.1 % 20.7 % (6.5 %) 1.8 % (10.2 %) (7.3 %) 0.7 % (2.4 %)

Orange County 4,028 5.5 % 2,230 97.4 % 16.1 % (1.0 %) 3.1 % (2.2 %) (1.8 %) 0.8 % (2.7 %)

San Diego 2,706 3.9 % 2,392 97.7 % 20.5 % 1.5 % 1.7 % 1.5 % 0.5 % 1.0 % (1.2 %)

Subtotal - Southern 22,927 29.8 % 2,370 96.5 % 19.9 % (4.7 %) 1.9 % (7.4 %) (5.5 %) 0.8 % (2.3 %)California



San Francisco 12,707 19.4 % 2,864 94.6 % 22.8 % (15.1 %) 4.3 % (21.6 %) (14.0 %) (1.2 %) 1.4 %

Washington DC 14,569 17.8 % 2,320 96.1 % 21.6 % (5.1 %) 3.5 % (8.9 %) (5.5 %) 0.3 % 1.7 %

New York 9,343 11.2 % 3,453 93.2 % 18.4 % (15.1 %) 4.0 % (30.4 %) (13.2 %) (2.1 %) (0.6 %)

Seattle 8,819 10.5 % 2,244 95.7 % 24.7 % (10.3 %) 4.4 % (16.0 %) (9.8 %) (0.5 %) 1.8 %

Boston 6,346 9.5 % 2,839 95.6 % 20.6 % (9.7 %) 5.0 % (15.5 %) (10.7 %) 0.9 % (2.1 %)

Denver 1,624 1.8 % 2,000 96.6 % 27.5 % (0.6 %) 5.3 % (3.0 %) (2.5 %) 1.8 % (4.0 %)



Total 76,335 100.0 % $ 2,588 95.5 % 21.3 % (9.5 %) (1) 3.6 % (15.4 %) (9.4 %) (0.1 %) (0.3 %)

(1)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 9.4% in the six months ended June 30, 2021 compared to the six months ended June 30, 2020. See page 12 for additional detail and reconciliations.

Note:

The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the six months ended June 30, 2021.



With Leasing Concessions reflected on a cash basis, Same Store(1) Residential Revenues decreased 9.4% in the six months ended June 30, 2021 compared to the six months ended June 30, 2020. See page 12 for additional detail and reconciliations.



The above table reflects Residential same store results only. ResidentialNote: operations account for approximately 96.2% of total revenues for the six months ended June 30, 2021.

Equity Residential

Same Store Residential Net Effective Lease Pricing Statistics

For 76,335 Same Store Apartment Units

Equity Residential

Same Store Residential Net Effective Lease Pricing Statistics

For 76,335 Same Store Apartment Units

New Lease Change (1)

Renewal Rate Achieved (1)

Blended Rate (1)

Markets/Metro Areas

Q2 2021

Q1 2021

Q2 2021

Q1 2021

Q2 2021

Q1 2021

Los Angeles

(0.2

%)

(7.6

%)

2.9

%

(0.2

%)

1.4

%

(4.0

%)

Orange County

8.8

%

0.1

%

5.3

%

3.0

%

6.7

%

1.7

%

San Diego

10.0

%

2.1

%

5.4

%

3.9

%

7.8

%

3.1

%

Subtotal - Southern California

2.1

%

(5.4

%)

3.6

%

0.9

%

2.9

%

(2.3

%)

San Francisco

(9.5

%)

(22.0

%)

(3.3

%)

(9.9

%)

(6.9

%)

(17.3

%)

Washington DC

(7.0

%)

(14.4

%)

(0.1

%)

(2.9

%)

(3.8

%)

(9.0

%)

New York

(12.9

%)

(28.3

%)

(2.0

%)

(9.5

%)

(7.8

%)

(20.7

%)

Seattle

(4.3

%)

(20.7

%)

(1.3

%)

(10.1

%)

(2.8

%)

(15.9

%)

Boston

(1.4

%)

(20.4

%)

0.7

%

(7.6

%)

(0.3

%)

(14.8

%)

Denver

3.9

%

(7.1

%)

6.6

%

3.5

%

5.1

%

(3.5

%)

Total

(5.3

%)

(17.7

%)

0.2

%

(5.2

%)

(2.7

%)

(12.2

%)

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

Markets/ Q2 Q2Metro Q2 2021 Q1 2021 2021 Q1 2021 2021 Q1 2021 Areas



Los (0.2 %) (7.6 %) 2.9 % (0.2 %) 1.4 % (4.0 %)Angeles

Orange 8.8 % 0.1 % 5.3 % 3.0 % 6.7 % 1.7 %County

San Diego 10.0 % 2.1 % 5.4 % 3.9 % 7.8 % 3.1 %

Subtotal -Southern 2.1 % (5.4 %) 3.6 % 0.9 % 2.9 % (2.3 %)California



San (9.5 %) (22.0 %) (3.3 %) (9.9 %) (6.9 %) (17.3 %)Francisco

Washington (7.0 %) (14.4 %) (0.1 %) (2.9 %) (3.8 %) (9.0 %)DC

New York (12.9 %) (28.3 %) (2.0 %) (9.5 %) (7.8 %) (20.7 %)

Seattle (4.3 %) (20.7 %) (1.3 %) (10.1 %) (2.8 %) (15.9 %)

Boston (1.4 %) (20.4 %) 0.7 % (7.6 %) (0.3 %) (14.8 %)

Denver 3.9 % (7.1 %) 6.6 % 3.5 % 5.1 % (3.5 %)



Total (5.3 %) (17.7 %) 0.2 % (5.2 %) (2.7 %) (12.2 %)

(1)

See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions. See page 3 for July 2021 preliminary data.

See Additional Reconciliations and Definitions of Non-GAAP Financial(1) Measures and Other Terms for definitions. See page 3 for July 2021 preliminary data.

Equity Residential

Equity Residential

Second Quarter 2021 vs. Second Quarter 2020

Total Same Store Operating Expenses Including 76,556 Same Store Apartment Units

$ in thousands

Q2 2021

Q2 2020

$

Change (1)

%

Change

% of

Q2 2021

Operating

Expenses

Real estate taxes

$

88,250

$

87,556

$

694

0.8

%

43.9

%

On-site payroll

40,142

40,564

(422

)

(1.0

%)

19.9

%

Utilities

27,001

24,502

2,499

10.2

%

13.4

%

Repairs and maintenance

25,675

22,330

3,345

15.0

%

12.8

%

Insurance

6,808

6,270

538

8.6

%

3.4

%

Leasing and advertising

2,748

2,144

604

28.2

%

1.4

%

Other on-site operating expenses

10,583

10,554

29

0.3

%

5.2

%

Total Same Store Operating Expenses (2)

(includes Residential and Non-Residential)

$

201,207

$

193,920

$

7,287

3.8

%

100.0

%

Second Quarter 2021 vs. Second Quarter 2020

Total Same Store Operating Expenses Including 76,556 Same Store Apartment Units

$ in thousands

% of $ % Q2 2021 Q2 2021 Q2 2020 Change (1) Change Operating

Expenses



Real estate $ 88,250 $ 87,556 $ 694 0.8 % 43.9 %taxes

On-site payroll 40,142 40,564 (422 ) (1.0 %) 19.9 %

Utilities 27,001 24,502 2,499 10.2 % 13.4 %

Repairs and 25,675 22,330 3,345 15.0 % 12.8 %maintenance

Insurance 6,808 6,270 538 8.6 % 3.4 %

Leasing and 2,748 2,144 604 28.2 % 1.4 %advertising

Other on-siteoperating 10,583 10,554 29 0.3 % 5.2 %expenses



Total Same StoreOperatingExpenses (2) $ 201,207 $ 193,920 $ 7,287 3.8 % 100.0 %(includesResidential andNon-Residential)

June YTD 2021 vs. June YTD 2020

Total Same Store Operating Expenses Including 76,335 Same Store Apartment Units

$ in thousands

YTD 2021

YTD 2020

$

Change (1)

%

Change

% of

YTD 2021

Operating

Expenses

Real estate taxes

$

178,082

$

174,980

$

3,102

1.8

%

43.3

%

On-site payroll

82,689

83,137

(448

)

(0.5

%)

20.1

%

Utilities

56,575

51,786

4,789

9.2

%

13.8

%

Repairs and maintenance

51,107

45,472

5,635

12.4

%

12.4

%

Insurance

13,758

12,510

1,248

10.0

%

3.4

%

Leasing and advertising

5,522

4,453

1,069

24.0

%

1.3

%

Other on-site operating expenses

23,207

23,614

(407

)

(1.7

%)

5.7

%

Total Same Store Operating Expenses (2)

(includes Residential and Non-Residential)

$

410,940

$

395,952

$

14,988

3.8

%

100.0

%

June YTD 2021 vs. June YTD 2020

Total Same Store Operating Expenses Including 76,335 Same Store Apartment Units

$ in thousands

% of $ % YTD 2021 YTD 2021 YTD 2020 Change (1) Change Operating

Expenses



Real estate $ 178,082 $ 174,980 $ 3,102 1.8 % 43.3 %taxes

On-site payroll 82,689 83,137 (448 ) (0.5 %) 20.1 %

Utilities 56,575 51,786 4,789 9.2 % 13.8 %

Repairs and 51,107 45,472 5,635 12.4 % 12.4 %maintenance

Insurance 13,758 12,510 1,248 10.0 % 3.4 %

Leasing and 5,522 4,453 1,069 24.0 % 1.3 %advertising

Other on-siteoperating 23,207 23,614 (407 ) (1.7 %) 5.7 %expenses



Total Same StoreOperatingExpenses (2) $ 410,940 $ 395,952 $ 14,988 3.8 % 100.0 %(includesResidential andNon-Residential)

(1)

The quarter-over-quarter and year-over-year changes were primarily driven by the following factors:

Real estate taxes - Increase is lower than prior expectations due to lower rates and assessed values.

On-site payroll - Improved sales and service staff utilization from various technology initiatives, lower than expected employee benefit-related costs and higher than usual staffing vacancies during the current period.

Utilities - Increase driven by rate increases and higher usage of water, sewer, trash, electric and gas.

Repairs and maintenance - Year-over-year increase was driven by low comparable period expense due to the pandemic along with greater snowfall on the East Coast and higher turnover expense from accelerated leasing in 2021.

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

Leasing and advertising - Increase due primarily to low comparable period expense due to the pandemic, increased digital advertising and selective use of outside broker fees of approximately $0.4 million for the six months ended June 30, 2021, primarily in the New York market.

Other on-site operating expenses - Year-over-year decrease primarily driven by lower ground lease costs due to a lease modification at one property.

(2)

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

(1) The quarter-over-quarter and year-over-year changes were primarily driven by the following factors:

Real estate taxes - Increase is lower than prior expectations due to lower rates and assessed values.

On-site payroll - Improved sales and service staff utilization from various technology initiatives, lower than expected employee benefit-related costs and higher than usual staffing vacancies during the current period.

Utilities - Increase driven by rate increases and higher usage of water, sewer, trash, electric and gas.

Repairs and maintenance - Year-over-year increase was driven by low comparable period expense due to the pandemic along with greater snowfall on the East Coast and higher turnover expense from accelerated leasing in 2021.

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

Leasing and advertising - Increase due primarily to low comparable period expense due to the pandemic, increased digital advertising and selective use of outside broker fees of approximately $0.4 million for the six months ended June 30, 2021, primarily in the New York market.

Other on-site operating expenses - Year-over-year decrease primarily driven by lower ground lease costs due to a lease modification at one property.

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

Equity Residential

Equity Residential

Debt Summary as of June 30, 2021

($ in thousands)

Debt

Balances (1)

% of Total

Weighted

Average

Rates (1)

Weighted

Average

Maturities

(years)

Secured

$

2,280,251

27.6

%

3.17

%

5.9

Unsecured

5,970,441

72.4

%

3.41

%

9.4

Total

$

8,250,692

100.0

%

3.34

%

8.4

Fixed Rate Debt:

Secured - Conventional

$

1,898,790

23.0

%

3.68

%

4.4

Unsecured - Public

5,338,671

64.7

%

3.75

%

10.5

Fixed Rate Debt

7,237,461

87.7

%

3.73

%

8.9

Floating Rate Debt:

Secured - Conventional

50,873

0.6

%

2.36

%

1.0

Secured - Tax Exempt

330,588

4.0

%

0.46

%

15.1

Unsecured - Revolving Credit Facility

-

-

-

3.3

Unsecured - Commercial Paper Program (2)

631,770

7.7

%

0.29

%

-

Floating Rate Debt

1,013,231

12.3

%

0.44

%

5.2

Total

$

8,250,692

100.0

%

3.34

%

8.4

Debt Summary as of June 30, 2021

($ in thousands)

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



Secured $ 2,280,251 27.6 % 3.17 % 5.9

Unsecured 5,970,441 72.4 % 3.41 % 9.4



Total $ 8,250,692 100.0 % 3.34 % 8.4

Fixed Rate Debt:

Secured - Conventional $ 1,898,790 23.0 % 3.68 % 4.4

Unsecured - Public 5,338,671 64.7 % 3.75 % 10.5



Fixed Rate Debt 7,237,461 87.7 % 3.73 % 8.9



Floating Rate Debt:

Secured - Conventional 50,873 0.6 % 2.36 % 1.0

Secured - Tax Exempt 330,588 4.0 % 0.46 % 15.1

Unsecured - Revolving - - - 3.3 Credit Facility

Unsecured - Commercial 631,770 7.7 % 0.29 % - Paper Program (2)



Floating Rate Debt 1,013,231 12.3 % 0.44 % 5.2



Total $ 8,250,692 100.0 % 3.34 % 8.4

(1)

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

(2)

At June 30, 2021, the weighted average maturity of commercial paper outstanding was 46 days. The weighted average amount outstanding for the six months ended June 30, 2021 was approximately $585.1 million.

Note:

The Company capitalized interest of approximately $8.2 million and $4.1 million during the six months ended June 30, 2021 and 2020, respectively. The Company capitalized interest of approximately $4.4 million and $2.3 million during the quarters ended June 30, 2021 and 2020, respectively.

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

At June 30, 2021, the weighted average maturity of commercial paper(2) outstanding was 46 days. The weighted average amount outstanding for the six months ended June 30, 2021 was approximately $585.1 million.

The Company capitalized interest of approximately $8.2 million and $4.1Note: million during the six months ended June 30, 2021 and 2020, respectively. The Company capitalized interest of approximately $4.4 million and $2.3 million during the quarters ended June 30, 2021 and 2020, respectively.

Equity Residential

Equity Residential

Debt Maturity Schedule as of June 30, 2021

($ 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

$

3,752

$

632,000

(2)

$

635,752

7.6

%

3.27

%

0.29

%

2022

264,185

51,113

315,298

3.8

%

3.25

%

3.09

%

2023

1,325,588

3,500

1,329,088

16.0

%

3.74

%

3.73

%

2024

-

6,100

6,100

0.1

%

N/A

0.05

%

2025

450,000

8,200

458,200

5.5

%

3.38

%

3.32

%

2026

592,025

9,000

601,025

7.2

%

3.58

%

3.53

%

2027

400,000

9,800

409,800

4.9

%

3.25

%

3.17

%

2028

900,000

10,700

910,700

10.9

%

3.79

%

3.74

%

2029

888,120

11,500

899,620

10.8

%

3.30

%

3.26

%

2030

1,095,000

12,600

1,107,600

13.3

%

2.55

%

2.52

%

2031+

1,379,350

275,535

1,654,885

19.9

%

4.37

%

3.66

%

Subtotal

7,298,020

1,030,048

8,328,068

100.0

%

3.55

%

3.15

%

Deferred Financing Costs and Unamortized (Discount)

(60,559

)

(16,817

)

(77,376

)

N/A

N/A

N/A

Total

$

7,237,461

$

1,013,231

$

8,250,692

100.0

%

3.55

%

3.15

%

Debt Maturity Schedule as of June 30, 2021

($ in thousands)

Weighted Weighted

Average Average Fixed Floating % of CouponsYear Total Total Coupons Rate Rate on Fixed on

Rate Total Debt (1) Debt (1)



2021 $ 3,752 $ 632,000 (2) $ 635,752 7.6 % 3.27 % 0.29 %

2022 264,185 51,113 315,298 3.8 % 3.25 % 3.09 %

2023 1,325,588 3,500 1,329,088 16.0 % 3.74 % 3.73 %

2024 - 6,100 6,100 0.1 % N/A 0.05 %

2025 450,000 8,200 458,200 5.5 % 3.38 % 3.32 %

2026 592,025 9,000 601,025 7.2 % 3.58 % 3.53 %

2027 400,000 9,800 409,800 4.9 % 3.25 % 3.17 %

2028 900,000 10,700 910,700 10.9 % 3.79 % 3.74 %

2029 888,120 11,500 899,620 10.8 % 3.30 % 3.26 %

2030 1,095,000 12,600 1,107,600 13.3 % 2.55 % 2.52 %

2031+ 1,379,350 275,535 1,654,885 19.9 % 4.37 % 3.66 %

Subtotal 7,298,020 1,030,048 8,328,068 100.0 % 3.55 % 3.15 %

DeferredFinancingCosts and (60,559 ) (16,817 ) (77,376 ) N/A N/A N/A Unamortized(Discount)



Total $ 7,237,461 $ 1,013,231 $ 8,250,692 100.0 % 3.55 % 3.15 %

(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

Equity Residential

Selected Unsecured Public Debt Covenants

June 30,

March 31,

2021

2021

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

30.7%

30.4%

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

9.3%

9.4%

Consolidated Income Available for Debt Service to

Maximum Annual Service Charges

(must be at least 1.5 to 1)

5.10

5.30

Total Unencumbered Assets to Unsecured Debt

(must be at least 125%)

442.1%

454.1%

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

Selected Unsecured Public Debt Covenants

June March 31, 30,

2021 2021

Debt to Adjusted Total Assets (not to exceed 60%) 30.7% 30.4%



Secured Debt to Adjusted Total Assets (not to exceed 9.3% 9.4% 40%)



Consolidated Income Available for Debt Service to

Maximum Annual Service Charges 5.10 5.30

(must be at least 1.5 to 1)



Total Unencumbered Assets to Unsecured Debt 442.1% 454.1% (must be at least 125%)

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

June 30,

March 31,

2021

2021

Total debt to Normalized EBITDAre

5.67x

5.29x

Net debt to Normalized EBITDAre

5.63x

5.25x

Unencumbered NOI as a % of total NOI

87.2%

87.5%

Note: See Normalized EBITDAre Reconciliations for detail.

Selected Credit Ratios

June 30, March 31,

2021 2021

Total debt to Normalized EBITDAre 5.67x 5.29x



Net debt to Normalized EBITDAre 5.63x 5.25x



Unencumbered NOI as a % of total NOI 87.2% 87.5%

Note: See Normalized EBITDAre Reconciliations for detail.

Equity Residential

Equity Residential

Capital Structure as of June 30, 2021

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

Secured Debt

$

2,280,251

27.6

%

Unsecured Debt

5,970,441

72.4

%

Total Debt

8,250,692

100.0

%

21.7

%

Common Shares (includes Restricted Shares)

374,354,830

96.7

%

Units (includes OP Units and Restricted Units)

12,929,688

3.3

%

Total Shares and Units

387,284,518

100.0

%

Common Share Price at June 30, 2021

$

77.00

29,820,908

99.9

%

Perpetual Preferred Equity (see below)

37,280

0.1

%

Total Equity

29,858,188

100.0

%

78.3

%

Total Market Capitalization

$

38,108,880

100.0

%

Capital Structure as of June 30, 2021

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

Secured Debt $ 2,280,251 27.6 %

Unsecured Debt 5,970,441 72.4 %



Total Debt 8,250,692 100.0 % 21.7 %



Common Shares(includes 374,354,830 96.7 % RestrictedShares)

Units(includes OPUnits and 12,929,688 3.3 % RestrictedUnits)



Total Shares 387,284,518 100.0 % and Units

Common SharePrice at June $ 77.00 30, 2021

29,820,908 99.9 %

PerpetualPreferred 37,280 0.1 % Equity (seebelow)



Total Equity 29,858,188 100.0 % 78.3 %



Total Market $ 38,108,880 100.0 %Capitalization

Perpetual Preferred Equity as of June 30, 2021

(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 June 30, 2021

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

Annual Annual Outstanding LiquidationSeries Call 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 Residential

Common Share and Unit

Weighted Average Amounts Outstanding

Equity Residential

Common Share and Unit

Weighted Average Amounts Outstanding

June YTD 2021

June YTD 2020

Q2 2021

Q2 2020

Weighted Average Amounts Outstanding for Net Income Purposes:

Common Shares - basic

373,049,965

371,688,567

373,811,755

371,795,049

Shares issuable from assumed conversion/vesting of:

- OP Units

12,544,494

13,013,343

12,044,402

13,022,786

- long-term compensation shares/units

1,772,470

1,570,149

1,963,498

1,095,436

Total Common Shares and Units - diluted

387,366,929

386,272,059

387,819,655

385,913,271

Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes:

Common Shares - basic

373,049,965

371,688,567

373,811,755

371,795,049

OP Units - basic

12,544,494

13,013,343

12,044,402

13,022,786

Total Common Shares and OP Units - basic

385,594,459

384,701,910

385,856,157

384,817,835

Shares issuable from assumed conversion/vesting of:

- long-term compensation shares/units

1,772,470

1,570,149

1,963,498

1,095,436

Total Common Shares and Units - diluted

387,366,929

386,272,059

387,819,655

385,913,271

Period Ending Amounts Outstanding:

Common Shares (includes Restricted Shares)

374,354,830

372,209,012

Units (includes OP Units and Restricted Units)

12,929,688

13,879,951

Total Shares and Units

387,284,518

386,088,963

June YTD 2021 June YTD 2020 Q2 2021 Q2 2020



WeightedAverageAmountsOutstanding for NetIncomePurposes:

CommonShares - 373,049,965 371,688,567 373,811,755 371,795,049 basic

Sharesissuablefrom assumed conversion/vesting of:

- OP Units 12,544,494 13,013,343 12,044,402 13,022,786

- long-termcompensation 1,772,470 1,570,149 1,963,498 1,095,436 shares/units



Total CommonShares and 387,366,929 386,272,059 387,819,655 385,913,271 Units -diluted



WeightedAverageAmountsOutstanding for FFO andNormalizedFFOPurposes:

CommonShares - 373,049,965 371,688,567 373,811,755 371,795,049 basic

OP Units - 12,544,494 13,013,343 12,044,402 13,022,786 basic



Total CommonShares and 385,594,459 384,701,910 385,856,157 384,817,835 OP Units -basic

Sharesissuablefrom assumed conversion/vesting of:

- long-termcompensation 1,772,470 1,570,149 1,963,498 1,095,436 shares/units



Total CommonShares and 387,366,929 386,272,059 387,819,655 385,913,271 Units -diluted



PeriodEnding AmountsOutstanding:

CommonShares(includes 374,354,830 372,209,012 RestrictedShares)

Units(includes OPUnits and 12,929,688 13,879,951 RestrictedUnits)



Total Shares 387,284,518 386,088,963 and Units

Equity Residential

Development and Lease-Up Projects as of June 30, 2021

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

Equity Residential

Development and Lease-Up Projects as of June 30, 2021

(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

$

355,696

$

355,696

$

-

89%

Q3 2021

Q4 2021

Q1 2023

15%

-

The Edge (fka 4885 Edgemoor Lane) (A)

Bethesda, MD

154

75,271

68,873

16,547

-

95%

Q3 2021

Q3 2021

Q3 2022

14%

-

Projects Under Development - Wholly Owned

624

485,020

424,569

372,243

-

Projects Completed Not Stabilized - Partially Owned:

Aero Apartments (B)

Alameda, CA

200

117,794

109,988

-

50,873

97%

Q2 2021

Q2 2021

Q2 2022

26%

20%

Projects Completed Not Stabilized - Partially Owned

200

117,794

109,988

-

50,873

Total Development Projects

824

$

602,814

$

534,557

$

372,243

$

50,873

Land Held for Development

N/A

N/A

$

90,446

$

90,446

$

-

NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS

Total

Budgeted

Capital

Cost

Q2 2021

NOI

Projects Under Development

$

485,020

$

(74

)

Projects Completed Not Stabilized

117,794

(173

)

Total Development NOI Contribution

$

602,814

$

(247

)

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

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



Projects UnderDevelopment - Wholly Owned:

AlcottApartments Boston, 470 $ 409,749 $ 355,696 $ 355,696 $ - 89% Q3 2021 Q4 2021 Q1 2023 15% - (fka West MAEnd Tower)

The Edge(fka 4885 Bethesda, 154 75,271 68,873 16,547 - 95% Q3 2021 Q3 2021 Q3 2022 14% - Edgemoor MDLane) (A)



Projects UnderDevelopment - Wholly 624 485,020 424,569 372,243 - Owned



Projects Completed NotStabilized - Partially Owned:

Aero Alameda,Apartments CA 200 117,794 109,988 - 50,873 97% Q2 2021 Q2 2021 Q2 2022 26% 20% (B)



Projects Completed NotStabilized - Partially 200 117,794 109,988 - 50,873 Owned



TotalDevelopment 824 $ 602,814 $ 534,557 $ 372,243 $ 50,873 Projects



Land Heldfor N/A N/A $ 90,446 $ 90,446 $ - Development



Total

NOI CONTRIBUTION FROM DEVELOPMENT Budgeted Q2 2021PROJECTS Capital NOI

Cost

ProjectsUnder $ 485,020 $ (74 ) Development

ProjectsCompleted 117,794 (173 ) NotStabilized

TotalDevelopment $ 602,814 $ (247 ) NOIContribution

(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 Six Months Ended June 30, 2021

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

Equity Residential

Capital Expenditures to Real Estate

For the Six Months Ended June 30, 2021

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

Same Store

Properties

Non-Same Store

Properties/Other

Total

Same Store Avg. Per Apartment Unit

Total Apartment Units

76,335

1,772

78,107

Building Improvements

$

38,991

$

148

$

39,139

$

511

Renovation Expenditures (1)

11,880

-

11,880

156

Replacements

15,072

352

15,424

197

Capital Expenditures to Real Estate (2)

$

65,943

$

500

$

66,443

$

864

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



Total Apartment Units 76,335 1,772 78,107



Building Improvements $ 38,991 $ 148 $ 39,139 $ 511



Renovation Expenditures 11,880 - 11,880 156 (1)



Replacements 15,072 352 15,424 197



Capital Expenditures to $ 65,943 $ 500 $ 66,443 $ 864 Real Estate (2)

(1)

Renovation Expenditures on 549 same store apartment units for the six months ended June 30, 2021 approximated $21,639 per apartment unit renovated.

(2)

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

Renovation Expenditures on 549 same store apartment units for the six(1) months ended June 30, 2021 approximated $21,639 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)

Equity Residential

Normalized EBITDAre Reconciliations

(Amounts in thousands)

Trailing Twelve Months

2021

2020

June 30, 2021

March 31, 2021

Q2

Q1

Q4

Q3

Q2

Net income

$

746,753

$

690,194

$

328,040

$

60,364

$

262,984

$

95,365

$

271,481

Interest expense incurred, net

332,080

346,841

67,124

67,358

116,724

80,874

81,885

Amortization of deferred financing costs

8,911

9,083

1,939

2,185

2,686

2,101

2,111

Amortization of above/below market lease intangibles

4,273

4,392

979

1,098

1,098

1,098

1,098

Depreciation

803,069

808,372

200,673

199,962

201,829

200,605

205,976

Income and other tax expense (benefit)

1,007

952

242

153

350

262

187

EBITDA

1,896,093

1,859,834

598,997

331,120

585,671

380,305

562,738

Net (gain) loss on sales of real estate properties

(403,259

)

(323,787

)

(223,738

)

43

(179,589

)

25

(144,266

)

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

(1,640

)

(1,640

)

-

(4

)

(636

)

(1,000

)

-

EBITDAre

1,491,194

1,534,407

375,259

331,159

405,446

379,330

418,472

Write-off of pursuit costs (other expenses)

6,238

6,573

1,316

1,331

2,005

1,586

1,651

(Income) loss from investments in unconsolidated entities - operations

4,597

5,378

261

1,615

1,475

1,246

1,042

Net (gain) loss on sales of land parcels

(34,239

)

(34,239

)

-

(5

)

(34,234

)

-

-

Realized (gain) loss on investment securities (interest and other income)

(23,432

)

133

(23,565

)

133

-

-

-

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

(2,131

)

(2,570

)

(328

)

-

(1,800

)

(3

)

(767

)

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

3,712

756

1,000

2,212

-

500

(1,956

)

Advocacy contributions (other expenses)

9,166

10,591

427

30

6,981

1,728

1,852

Other

(444

)

(965

)

-

-

(15

)

(429

)

(521

)

Normalized EBITDAre

$

1,454,661

$

1,520,064

$

354,370

$

336,475

$

379,858

$

383,958

$

419,773

Balance Sheet Items:

June 30, 2021

March 31, 2021

Total debt

$

8,250,692

$

8,037,556

Cash and cash equivalents

(39,492

)

(35,453

)

Mortgage principal reserves/sinking funds

(16,580

)

(15,360

)

Net debt

$

8,194,620

$

7,986,743

Trailing Twelve Months 2021 2020

June 30, March 31, Q2 Q1 Q4 Q3 Q2 2021 2021

Net income $ 746,753 $ 690,194 $ 328,040 $ 60,364 $ 262,984 $ 95,365 $ 271,481

Interestexpense 332,080 346,841 67,124 67,358 116,724 80,874 81,885 incurred, net

Amortizationof deferred 8,911 9,083 1,939 2,185 2,686 2,101 2,111 financingcosts

Amortizationof above/below 4,273 4,392 979 1,098 1,098 1,098 1,098 market leaseintangibles

Depreciation 803,069 808,372 200,673 199,962 201,829 200,605 205,976

Income andother tax 1,007 952 242 153 350 262 187 expense(benefit)



EBITDA 1,896,093 1,859,834 598,997 331,120 585,671 380,305 562,738



Net (gain)loss on sales (403,259 ) (323,787 ) (223,738 ) 43 (179,589 ) 25 (144,266 )of real estateproperties

Net (gain)loss on salesofunconsolidated (1,640 ) (1,640 ) - (4 ) (636 ) (1,000 ) - entities -operatingassets



EBITDAre 1,491,194 1,534,407 375,259 331,159 405,446 379,330 418,472



Write-off ofpursuit costs 6,238 6,573 1,316 1,331 2,005 1,586 1,651 (otherexpenses)

(Income) lossfrominvestments in 4,597 5,378 261 1,615 1,475 1,246 1,042 unconsolidatedentities -operations

Net (gain)loss on sales (34,239 ) (34,239 ) - (5 ) (34,234 ) - - of landparcels

Realized(gain) loss oninvestment (23,432 ) 133 (23,565 ) 133 - - - securities(interest andother income)

Insurance/litigationsettlement or (2,131 ) (2,570 ) (328 ) - (1,800 ) (3 ) (767 )reserve income(interest andother income)

Insurance/litigation/environmentalsettlement or 3,712 756 1,000 2,212 - 500 (1,956 )reserveexpense (otherexpenses)

Advocacycontributions 9,166 10,591 427 30 6,981 1,728 1,852 (otherexpenses)

Other (444 ) (965 ) - - (15 ) (429 ) (521 )



Normalized $ 1,454,661 $ 1,520,064 $ 354,370 $ 336,475 $ 379,858 $ 383,958 $ 419,773 EBITDAre



Balance Sheet June 30, March 31, Items: 2021 2021



Total debt $ 8,250,692 $ 8,037,556

Cash and cash (39,492 ) (35,453 ) equivalents

Mortgageprincipal (16,580 ) (15,360 ) reserves/sinking funds

Net debt $ 8,194,620 $ 7,986,743

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 Residential

Adjustments from FFO to Normalized FFO

(Amounts in thousands)

Equity Residential

Adjustments from FFO to Normalized FFO

(Amounts in thousands)

Six Months Ended June 30,

Quarter Ended June 30,

2021

2020

Variance

2021

2020

Variance

Impairment - non-operating assets

$

-

$

-

$

-

$

-

$

-

$

-

Write-off of pursuit costs (other expenses)

2,647

3,278

(631

)

1,316

1,651

(335

)

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

264

32

232

-

32

(32

)

Debt extinguishment and preferred share redemption (gains) losses

264

32

232

-

32

(32

)

Net (gain) loss on sales of land parcels

(5

)

-

(5

)

-

-

-

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

129

670

(541

)

(597

)

229

(826

)

Realized (gain) loss on investment securities (interest and other income)

(23,432

)

-

(23,432

)

(23,565

)

-

(23,565

)

Non-operating asset (gains) losses

(23,308

)

670

(23,978

)

(24,162

)

229

(24,391

)

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

(328

)

(2,349

)

2,021

(328

)

(767

)

439

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

3,212

(1,793

)

5,005

1,000

(1,956

)

2,956

Advocacy contributions (other expenses)

457

2,353

(1,896

)

427

1,852

(1,425

)

Other

-

(521

)

521

-

(521

)

521

Other miscellaneous items

3,341

(2,310

)

5,651

1,099

(1,392

)

2,491

Adjustments from FFO to Normalized FFO

$

(17,056

)

$

1,670

$

(18,726

)

$

(21,747

)

$

520

$

(22,267

)

Six Months Ended June 30, Quarter Ended June 30,

2021 2020 Variance 2021 2020 Variance



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



Write-off ofpursuit costs 2,647 3,278 (631 ) 1,316 1,651 (335 )(otherexpenses)



Write-off ofunamortizeddeferredfinancing 264 32 232 - 32 (32 )costs(interestexpense)

Debtextinguishmentand preferred 264 32 232 - 32 (32 )shareredemption(gains) losses



Net (gain)loss on sales (5 ) - (5 ) - - - of landparcels

(Income) lossfrominvestments inunconsolidated 129 670 (541 ) (597 ) 229 (826 )entities -non-operatingassets

Realized(gain) loss oninvestment (23,432 ) - (23,432 ) (23,565 ) - (23,565 )securities(interest andother income)

Non-operatingasset (gains) (23,308 ) 670 (23,978 ) (24,162 ) 229 (24,391 )losses



Insurance/litigationsettlement or (328 ) (2,349 ) 2,021 (328 ) (767 ) 439 reserve income(interest andother income)

Insurance/litigation/environmentalsettlement or 3,212 (1,793 ) 5,005 1,000 (1,956 ) 2,956 reserveexpense (otherexpenses)

Advocacycontributions 457 2,353 (1,896 ) 427 1,852 (1,425 )(otherexpenses)

Other - (521 ) 521 - (521 ) 521

Othermiscellaneous 3,341 (2,310 ) 5,651 1,099 (1,392 ) 2,491 items



Adjustmentsfrom FFO to $ (17,056 ) $ 1,670 $ (18,726 ) $ (21,747 ) $ 520 $ (22,267 )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.

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

Equity Residential

Normalized FFO Guidance and Assumptions

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

Q3 2021 Revised Full Previous Full Year 2021 Year 2021



2021 Normalized FFO Guidance (per share diluted)



Expected Normalized FFO Per Share $0.72 to $2.85 to $2.70 to $0.76 $2.95 $2.80



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



Physical Occupancy 95.3% to 95.0% to 96.3% 96.0%

Revenue change (1) (5.0%) to (8.0%) to (4.0%) (6.0%)

Expense change 2.75% to 3.0% to 4.0% 3.25%

NOI change (2) (8.5%) to (13.0%) to (7.5%) (11.0%)



2021 Transaction Assumptions



Consolidated rental acquisitions $1.5B N/A

Consolidated rental dispositions $1.5B N/A

Transaction Accretion (Dilution) None N/A



2021 Debt Assumptions



Weighted average debt outstanding $8.1B to $8.1B to $8.3B $8.3B

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

Capitalized interest $16.5M to $14.5M to $17.5M $16.5M



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



Capital Expenditures to Real Estate $150.0M $150.0Mfor Same Store Properties

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



2021 Other Guidance Assumptions



Property management expense $96.5M to $96.5M to $98.5M $98.5M

General and administrative expense $55.0M to $53.0M to $57.0M $55.0M

Debt offerings $500.0M No amounts budgeted

Weighted average Common Shares and Units - 388.2M 386.8MDiluted

(1)

Revenue change is reflected on a GAAP basis. Revenue change would be approximately (4.5%) to (3.5%) 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 (4.5%) to (3.5%) 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 - Change in rental income due to bad debt write-offs and reserves, net of amounts collected on previously written-off or reserved accounts.

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

Capital Expenditures to Real Estate:

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

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

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

Debt Balances:

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

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

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

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

Capital Expenditures to Real Estate:

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

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

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

Debt Balances:

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

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

June 30, 2021

Unsecured revolving credit facility commitment $ 2,500,000



Commercial paper balance outstanding (632,000 )



Unsecured revolving credit facility balance outstanding -



Other restricted amounts (100,699 )



Unsecured revolving credit facility availability $ 1,767,301

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):

Six Months Ended Quarter Ended June 30, 2021 June 30, 2021



Net Gain (Loss) on Sales of Real $ 223,695 $ 223,738 Estate Properties

Accumulated Depreciation Gain (95,972 ) (95,972 )



Economic Gain (Loss) $ 127,723 $ 127,766

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 Actual Actual Expected Expected June June

YTD YTD Q2 2021 Q2 2020 Q3 2021 2021 2021 2020

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

EPS - Diluted $ 1.00 $ 1.53 $ 0.84 $ 0.70 $1.38 to $3.03 to $1.42 $3.13

Depreciation 1.03 1.07 0.52 0.53 0.52 2.07 expense

Net (gain) loss on (0.58 ) (0.88 ) (0.58 ) (0.37 ) (1.19) (2.21) sales

Impairment - - - - - - - operating assets



FFO per share - 1.45 1.72 0.78 0.86 0.71 to 2.89 to Diluted 0.75 2.99



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

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

Debt extinguishmentand preferred share - - - - - - redemption(gains) losses

Non-operating asset (0.06 ) - (0.06 ) - - (0.06) (gains) losses

Other miscellaneous 0.01 (0.01 ) - - - 0.01 items



Normalized FFO per $ 1.40 $ 1.72 $ 0.72 $ 0.86 $0.72 to $2.85 to share - Diluted $0.76 $2.95

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

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

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

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

Six Months Ended June 30, Quarter Ended June 30,

2021 2020 2021 2020

Operating income $ 512,404 $ 778,974 $ 376,844 $ 356,889

Adjustments:

Property 50,585 51,317 24,455 23,608 management

General and 30,061 26,353 14,678 11,835 administrative

Depreciation 400,635 418,398 200,673 205,976

Net (gain) losson sales of realestate (223,695 ) (352,243 ) (223,738 ) (144,266 )

properties

Total NOI $ 769,990 $ 922,799 $ 392,912 $ 454,042

Rental income:

Same store $ 1,174,563 $ 1,288,732 $ 589,008 $ 634,393

Non-same store/ 21,098 47,105 9,051 19,139 other

Total rental 1,195,661 1,335,837 598,059 653,532 income

Operating expenses:

Same store 410,940 395,952 201,207 193,920

Non-same store/ 14,731 17,086 3,940 5,570 other

Total operating 425,671 413,038 205,147 199,490 expenses

NOI:

Same store 763,623 892,780 387,801 440,473

Non-same store/ 6,367 30,019 5,111 13,569 other

Total NOI $ 769,990 $ 922,799 $ 392,912 $ 454,042

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 2020 and 2021, plus any properties in lease-up and not stabilized as of January 1, 2020.

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, 2020, 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 June 30, 2021. In case of debt for which fair value hedges are in place, the rate payable under the corresponding derivatives is used in lieu of the contractual interest rate.

Weighted Average Rates - Interest expense for each debt instrument for the six months ended June 30, 2021 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