Business Wire | Oct 27, 2020 04:17PM EDT

Equity Residential Reports Third Quarter 2020 Results

Oct. 27, 2020

CHICAGO--(BUSINESS WIRE)--Oct. 27, 2020--Equity Residential (NYSE: EQR) today reported results for the quarter and nine months ended September 30, 2020.

Third Quarter 2020 Results

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



Quarter Ended September 30,

2020 2019 $ Change % Change

Earnings Per Share (EPS) $ 0.24 $ 0.71 $ (0.47 ) (66.2 %)

Funds from Operations (FFO) per $ 0.76 $ 0.92 $ (0.16 ) (17.4 %) share

Normalized FFO per share $ 0.77 $ 0.91 $ (0.14 ) (15.4 %)



Nine Months Ended September 30,

2020

2019

$ Change

% Change

Earnings Per Share (EPS)

$

1.77

$

1.82

$

(0.05

)

(2.7

%)

Funds from Operations (FFO) per share

$

2.48

$

2.53

$

(0.05

)

(2.0

%)

Normalized FFO per share

$

2.49

$

2.58

$

(0.09

)

(3.5

%)

"Operating results in the quarter were challenging and widely varying. Our suburban portfolio continues to fare relatively well with occupancy similar to last year, rates down only modestly and recovery under way in some markets. However, the approximately 23% of our portfolio located in the urban cores of New York, San Francisco and Boston continues to struggle with pandemic-related reductions in economic activity, which have led to declines in occupancy, lower resident renewal levels and a related drop in rental rates. While we have seen recent improvements in renewals and application volume, pricing pressures continue and headwinds remain," said Mark J. Parrell, Equity Residential's President and CEO.

"We anticipate that our financial results will weaken over subsequent quarters as the full effect of the pandemic is felt on our business. Looking longer term, we expect that positive developments relating to the pandemic will eventually re-energize the urban centers which have persevered and thrived through many decades and in similarly challenging circumstances. We continue to see the urban locations in our markets as centers of our country's knowledge industries and expect them to again attract disproportionate numbers of affluent renters once the pandemic ends. Many thanks to my colleagues at our properties and offices across the country for their hard work and dedication in these difficult times."

Highlights

* The Company collected approximately 97% of its expected Residential revenues in the third quarter of 2020; and * The Company's balance sheet and liquidity position remains exceptionally strong, having reduced its total debt by over $600 million during 2020 using proceeds from property dispositions.

Results Per Share

The change in EPS for the quarter ended September 30, 2020 compared to the same period of 2019 is due primarily to lower property sale gains in the third quarter of 2020, the various adjustment items listed on page 25 of this release and the items described below. The change in EPS for the nine months ended September 30, 2020 compared to the same period of 2019 is due primarily to the various adjustment items listed on page 25 of this release and the items described below.

The per share changes in FFO for both the quarter and nine months ended September 30, 2020 compared to the same periods of 2019, are due primarily to the various adjustment items listed on page 25 of this release and the items described below.

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



Nine Months Ended September 30,

2020 2019 $ Change % Change

Earnings Per Share (EPS) $ 1.77 $ 1.82 $ (0.05 ) (2.7 %)

Funds from Operations (FFO) per $ 2.48 $ 2.53 $ (0.05 ) (2.0 %) share

Normalized FFO per share $ 2.49 $ 2.58 $ (0.09 ) (3.5 %)



"Operating results in the quarter were challenging and widely varying. Our suburban portfolio continues to fare relatively well with occupancy similar to last year, rates down only modestly and recovery under way in some markets. However, the approximately 23% of our portfolio located in the urban cores of New York, San Francisco and Boston continues to struggle with pandemic-related reductions in economic activity, which have led to declines in occupancy, lower resident renewal levels and a related drop in rental rates. While we have seen recent improvements in renewals and application volume, pricing pressures continue and headwinds remain," said Mark J. Parrell, Equity Residential's President and CEO.

"We anticipate that our financial results will weaken over subsequent quarters as the full effect of the pandemic is felt on our business. Looking longer term, we expect that positive developments relating to the pandemic will eventually re-energize the urban centers which have persevered and thrived through many decades and in similarly challenging circumstances. We continue to see the urban locations in our markets as centers of our country's knowledge industries and expect them to again attract disproportionate numbers of affluent renters once the pandemic ends. Many thanks to my colleagues at our properties and offices across the country for their hard work and dedication in these difficult times."

Highlights

* The Company collected approximately 97% of its expected Residential revenues in the third quarter of 2020; and * The Company's balance sheet and liquidity position remains exceptionally strong, having reduced its total debt by over $600 million during 2020 using proceeds from property dispositions.

Results Per Share

The change in EPS for the quarter ended September 30, 2020 compared to the same period of 2019 is due primarily to lower property sale gains in the third quarter of 2020, the various adjustment items listed on page 25 of this release and the items described below. The change in EPS for the nine months ended September 30, 2020 compared to the same period of 2019 is due primarily to the various adjustment items listed on page 25 of this release and the items described below.

The per share changes in FFO for both the quarter and nine months ended September 30, 2020 compared to the same periods of 2019, are due primarily to the various adjustment items listed on page 25 of this release and the items described below.

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

Positive/(Negative) Impact

Third Quarter September YTD 2020 vs. 2020 vs. Third Quarter September YTD 2019 2019

Residential same store Net Operating $ (0.09 ) $ (0.07 )Income (NOI)

Non-Residential same store NOI ^(1) (0.05 ) (0.07 )

Lease-Up NOI - 0.01

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

Interest expense 0.03 0.08

Other items - (0.01 )

Net $ (0.14 ) $ (0.09 )

(1)

Non-Residential same store NOI was negatively impacted by a $(0.03) per share non-cash write-off of Non-Residential straight-line lease receivables during the third quarter of 2020 and nine months ended September 30, 2020.

The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 26 through 32 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 6, 28 and 29 of this release.

Same Store Results

The Company has provided a breakout of Residential and Non-Residential same store results on pages 10 and 11 of this release with definitions that can be found on page 30 of this release. Non-Residential operations account for approximately 2.4% of total revenues for the nine months ended September 30, 2020. The table below reflects same store Residential only results for the third quarter 2020 to third quarter 2019 comparison, which includes 75,596 apartment units, as well as for the nine months ended September 30, 2020 to nine months ended September 30, 2019 comparison, which includes 74,264 apartment units. The Company's Physical Occupancy was 94.8% compared to 96.5% for the third quarter of 2020 and 2019, respectively, and 95.4% compared to 96.4% for the first nine months of 2020 and 2019, respectively.

Non-Residential same store NOI was negatively impacted by a $(0.03) per(1) share non-cash write-off of Non-Residential straight-line lease receivables during the third quarter of 2020 and nine months ended September 30, 2020.

The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 26 through 32 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 6, 28 and 29 of this release.

Same Store Results

The Company has provided a breakout of Residential and Non-Residential same store results on pages 10 and 11 of this release with definitions that can be found on page 30 of this release. Non-Residential operations account for approximately 2.4% of total revenues for the nine months ended September 30, 2020. The table below reflects same store Residential only results for the third quarter 2020 to third quarter 2019 comparison, which includes 75,596 apartment units, as well as for the nine months ended September 30, 2020 to nine months ended September 30, 2019 comparison, which includes 74,264 apartment units. The Company's Physical Occupancy was 94.8% compared to 96.5% for the third quarter of 2020 and 2019, respectively, and 95.4% compared to 96.4% for the first nine months of 2020 and 2019, respectively.

Third Quarter 2020 vs. September YTD 2020 vs. Third Quarter 2019 September YTD 2019

Revenues (5.0%) (1.0%)

Expenses 3.0% 1.7%

NOI (8.4%) (2.2%)

The following table reflects the detail of the change in Same Store Residential Revenues, which is presented on a GAAP basis showing Leasing Concessions on a straight-line basis. See pages 30 and 31 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.

Third Quarter 2020 September YTD 2020 vs. vs. Third Quarter 2019 September YTD 2019

% Change % Change

Same Store Residential Revenues-

comparable period

Lease rates (1.4 %) 1.0 %

Leasing Concessions ^(1) (0.6 %) (0.2 %)

Vacancy loss (1.7 %) (1.2 %)

Bad Debt, Net ^(2) (2.0 %) (1.0 %)

Other ^(3) 0.7 % 0.4 %

Same Store Residential Revenues-

current period (5.0 %) (1.0 %)

(1)

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

(2)

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

(3)

Includes ancillary income, utility recoveries, miscellaneous income and other items.

Residential Same Store Operating Statistics

The following table includes select statistics for Residential Same Store Properties presented on a suburban and urban basis. Statistics for October 2020 are preliminary and Blended Rate is inclusive of Leasing Concessions.

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

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

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

Residential Same Store Operating Statistics

The following table includes select statistics for Residential Same Store Properties presented on a suburban and urban basis. Statistics for October 2020 are preliminary and Blended Rate is inclusive of Leasing Concessions.

% of Same Physical Occupancy Change in Store on: Renewal % Blended Rate Applications Residential Revenues

Q3 Oct Jun Sep Oct Oct Oct 2020 2020 Sep 30, 30, 22, Oct Sep 2020 Q3 Sep 2020 vs. (4) YTD 2020 2020 2020 2020 2019 2020 (4) 2020 2020 (4) Q3 vs. 2019 Oct 2019

Suburban 44% 96.4% 95.9% 95.8% 59% 54% 57% (4.8%) (5.8%) (6.0%) 10% 32%(1)

Urban 33% 94.7% 94.4% 94.4% 50% 46% 50% (6.5%) (8.4%) (10.7%) 21% 47%(1)(2)

UrbanCore (1) 23% 92.5% 89.2% 88.9% 58% 43% 46% (14.7%) (17.9%) (21.4%) 48% 108%(3)

Total 100% 95.1% 94.2% 94.1% 56% 50% 53% (7.9%) (9.5%) (10.6%) 20% 46%

(1)

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

(2)

Includes all other Urban properties excluding Urban Core.

(3)

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

(4)

October 2020 results are preliminary.

Investment Activity

The Company acquired a 158-unit apartment property in suburban Seattle during the third quarter of 2020 for a purchase price of approximately $48.9 million at an Acquisition Capitalization Rate of 4.7%. The Company did not sell any assets during the third quarter of 2020. During the first nine months of 2020, the Company acquired the property described above and sold five properties, consisting of 1,552 apartment units, for an aggregate sales price of approximately $754.4 million at a weighted average Disposition Yield of 4.7%, generating an Unlevered IRR of 10.8%.

Fourth Quarter 2020 Earnings and Conference Call

Equity Residential expects to announce its fourth quarter and full year 2020 results on Tuesday, February 2, 2021 and host a conference call to discuss those results at 10:00 a.m. CT on Wednesday, February 3, 2021.

About Equity Residential

Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract high quality long-term renters. Equity Residential owns or has investments in 305 properties consisting of 78,568 apartment units, located in Boston, New York, Washington, D.C., Seattle, San Francisco, Southern California and Denver. For more information on Equity Residential, please visit our website at www.equityapartments.com.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential's management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, competition and local government regulation. In addition, these forward-looking statements are subject to risks related to the COVID-19 pandemic, many of which are unknown, including the duration and severity of the pandemic, the extent of the adverse health impact on the general population and on our residents, customers and employees in particular, its impact on the employment rate and the economy and the corresponding impact on our residents' and tenants' ability to pay their rent on time or at all, the extent and impact of governmental responses 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, October 28, 2020 at 10:00 a.m. CT. Please visit the Investor section of the Company's web site at www.equityapartments.com for the link. A replay of the web cast will be available for two weeks at this site.

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

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

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

(4) October 2020 results are preliminary.

Investment Activity

The Company acquired a 158-unit apartment property in suburban Seattle during the third quarter of 2020 for a purchase price of approximately $48.9 million at an Acquisition Capitalization Rate of 4.7%. The Company did not sell any assets during the third quarter of 2020. During the first nine months of 2020, the Company acquired the property described above and sold five properties, consisting of 1,552 apartment units, for an aggregate sales price of approximately $754.4 million at a weighted average Disposition Yield of 4.7%, generating an Unlevered IRR of 10.8%.

Fourth Quarter 2020 Earnings and Conference Call

Equity Residential expects to announce its fourth quarter and full year 2020 results on Tuesday, February 2, 2021 and host a conference call to discuss those results at 10:00 a.m. CT on Wednesday, February 3, 2021.

About Equity Residential

Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract high quality long-term renters. Equity Residential owns or has investments in 305 properties consisting of 78,568 apartment units, located in Boston, New York, Washington, D.C., Seattle, San Francisco, Southern California and Denver. For more information on Equity Residential, please visit our website at www.equityapartments.com.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential's management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, competition and local government regulation. In addition, these forward-looking statements are subject to risks related to the COVID-19 pandemic, many of which are unknown, including the duration and severity of the pandemic, the extent of the adverse health impact on the general population and on our residents, customers and employees in particular, its impact on the employment rate and the economy and the corresponding impact on our residents' and tenants' ability to pay their rent on time or at all, the extent and impact of governmental responses 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, October 28, 2020 at 10:00 a.m. CT. Please visit the Investor section of the Company's web site at www.equityapartments.com for the link. A replay of the web cast will be available for two weeks at this site.

Equity Residential

Consolidated Statements of Operations

(Amounts in thousands except per share data)

(Unaudited)

Nine Months Ended September Quarter Ended September 30, 30,

2020 2019 2020 2019

REVENUES

Rental income $ 1,958,270 $ 2,016,796 $ 622,433 $ 685,120



EXPENSES

Property and 333,333 338,497 113,065 114,966 maintenance

Real estate taxes 288,043 270,434 95,273 87,546 and insurance

Property management 71,513 72,705 20,196 21,940

General and 37,212 41,127 10,859 11,417 administrative

Depreciation 619,003 616,201 200,605 211,478

Total expenses 1,349,104 1,338,964 439,998 447,347



Net gain (loss) onsales of real 352,218 269,400 (25 ) 130,565 estate properties



Operating income 961,384 947,232 182,410 368,338



Interest and other 4,006 2,581 535 656 income

Other expenses (8,324 ) (11,205 ) (4,097 ) (2,813 )

Interest:

Expense incurred, (248,349 ) (289,776 ) (80,874 ) (85,936 )net

Amortization ofdeferred financing (6,253 ) (8,664 ) (2,101 ) (2,881 )costs

Income beforeincome and othertaxes, income(loss) from

investments inunconsolidatedentities and netgain (loss)

on sales of land 702,464 640,168 95,873 277,364 parcels

Income and othertax (expense) (502 ) (749 ) (262 ) (265 )benefit

Income (loss) frominvestments in (2,445 ) 66,906 (246 ) (1,152 )unconsolidatedentities

Net gain (loss) onsales of land - 2,077 - 1,899 parcels

Net income 699,517 708,402 95,365 277,846

Net (income) lossattributable to NoncontrollingInterests:

Operating (24,624 ) (25,339 ) (3,376 ) (9,910 )Partnership

Partially Owned (14,113 ) (2,450 ) (703 ) (830 )Properties

Net incomeattributable to 660,780 680,613 91,286 267,106 controllinginterests

Preferred (2,318 ) (2,318 ) (773 ) (773 )distributions

Net incomeavailable to Common $ 658,462 $ 678,295 $ 90,513 $ 266,333 Shares



Earnings per share - basic:

Net incomeavailable to Common $ 1.77 $ 1.83 $ 0.24 $ 0.72 Shares

Weighted averageCommon Shares 371,749 370,227 371,869 370,768 outstanding



Earnings per share - diluted:

Net incomeavailable to Common $ 1.77 $ 1.82 $ 0.24 $ 0.71 Shares

Weighted averageCommon Shares 385,973 386,177 385,652 386,896 outstanding



Distributionsdeclared per Common $ 1.8075 $ 1.7025 $ 0.6025 $ 0.5675 Share outstanding

Equity Residential

Consolidated Statements of Funds From Operations and Normalized Funds From Operations

(Amounts in thousands except per share data)

(Unaudited)

Nine Months Ended September 30,

Quarter Ended September 30,

2020

2019

2020

2019

Net income

$

699,517

$

708,402

$

95,365

$

277,846

Net (income) loss attributable to Noncontrolling Interests - Partially

Owned Properties

(14,113

)

(2,450

)

(703

)

(830

)

Preferred distributions

(2,318

)

(2,318

)

(773

)

(773

)

Net income available to Common Shares and Units

683,086

703,634

93,889

276,243

Adjustments:

Depreciation

619,003

616,201

200,605

211,478

Depreciation - Non-real estate additions

(3,433

)

(4,235

)

(1,126

)

(1,932

)

Depreciation - Partially Owned Properties

(2,514

)

(2,700

)

(828

)

(898

)

Depreciation - Unconsolidated Properties

1,838

2,385

614

613

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

assets

(1,000

)

(69,522

)

(1,000

)

-

Net (gain) loss on sales of real estate properties

(352,218

)

(269,400

)

25

(130,565

)

Noncontrolling Interests share of gain (loss) on sales

of real estate properties

11,655

-

-

-

FFO available to Common Shares and Units

956,417

976,363

292,179

354,939

Adjustments (see note for additional detail):

Impairment - non-operating assets

-

-

-

-

Write-off of pursuit costs

4,864

4,098

1,586

1,111

Debt extinguishment and preferred share redemption (gains)

losses

37

11,807

5

(4,840

)

Non-operating asset (gains) losses

1,022

(1,200

)

352

(1,452

)

Other miscellaneous items

(514

)

6,539

1,796

2,121

Normalized FFO available to Common Shares and Units

$

961,826

$

997,607

$

295,918

$

351,879

FFO

$

958,735

$

978,681

$

292,952

$

355,712

Preferred distributions

(2,318

)

(2,318

)

(773

)

(773

)

FFO available to Common Shares and Units

$

956,417

$

976,363

$

292,179

$

354,939

FFO per share and Unit - basic

$

2.49

$

2.55

$

0.76

$

0.93

FFO per share and Unit - diluted

$

2.48

$

2.53

$

0.76

$

0.92

Normalized FFO

$

964,144

$

999,925

$

296,691

$

352,652

Preferred distributions

(2,318

)

(2,318

)

(773

)

(773

)

Normalized FFO available to Common Shares and Units

$

961,826

$

997,607

$

295,918

$

351,879

Normalized FFO per share and Unit - basic

$

2.50

$

2.60

$

0.77

$

0.92

Normalized FFO per share and Unit - diluted

$

2.49

$

2.58

$

0.77

$

0.91

Weighted average Common Shares and Units outstanding - basic

384,759

383,142

384,871

383,709

Weighted average Common Shares and Units outstanding - diluted

385,973

386,177

385,652

386,896

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

Equity Residential

Consolidated Statements of Funds From Operations and Normalized Funds FromOperations

(Amounts in thousands except per share data)

(Unaudited)

Nine Months Ended September Quarter Ended September 30, 30,

2020 2019 2020 2019

Net income $ 699,517 $ 708,402 $ 95,365 $ 277,846

Net (income) lossattributable toNoncontrollingInterests -Partially

Owned Properties (14,113 ) (2,450 ) (703 ) (830 )

Preferred (2,318 ) (2,318 ) (773 ) (773 )distributions

Net income availableto Common Shares and 683,086 703,634 93,889 276,243 Units



Adjustments:

Depreciation 619,003 616,201 200,605 211,478

Depreciation -Non-real estate (3,433 ) (4,235 ) (1,126 ) (1,932 )additions

Depreciation -Partially Owned (2,514 ) (2,700 ) (828 ) (898 )Properties

Depreciation -Unconsolidated 1,838 2,385 614 613 Properties

Net (gain) loss onsales ofunconsolidatedentities - operating

assets (1,000 ) (69,522 ) (1,000 ) -

Net (gain) loss onsales of real estate (352,218 ) (269,400 ) 25 (130,565 )properties

NoncontrollingInterests share ofgain (loss) on sales

of real estate 11,655 - - - properties

FFO available toCommon Shares and 956,417 976,363 292,179 354,939 Units



Adjustments (seenote for additional detail):

Impairment - - - - - non-operating assets

Write-off of pursuit 4,864 4,098 1,586 1,111 costs

Debt extinguishmentand preferred shareredemption (gains)

losses 37 11,807 5 (4,840 )

Non-operating asset 1,022 (1,200 ) 352 (1,452 )(gains) losses

Other miscellaneous (514 ) 6,539 1,796 2,121 items

Normalized FFOavailable to Common $ 961,826 $ 997,607 $ 295,918 $ 351,879 Shares and Units



FFO $ 958,735 $ 978,681 $ 292,952 $ 355,712

Preferred (2,318 ) (2,318 ) (773 ) (773 )distributions

FFO available toCommon Shares and $ 956,417 $ 976,363 $ 292,179 $ 354,939 Units

FFO per share and $ 2.49 $ 2.55 $ 0.76 $ 0.93 Unit - basic

FFO per share and $ 2.48 $ 2.53 $ 0.76 $ 0.92 Unit - diluted



Normalized FFO $ 964,144 $ 999,925 $ 296,691 $ 352,652

Preferred (2,318 ) (2,318 ) (773 ) (773 )distributions

Normalized FFOavailable to Common $ 961,826 $ 997,607 $ 295,918 $ 351,879 Shares and Units

Normalized FFO pershare and Unit - $ 2.50 $ 2.60 $ 0.77 $ 0.92 basic

Normalized FFO pershare and Unit - $ 2.49 $ 2.58 $ 0.77 $ 0.91 diluted



Weighted averageCommon Shares and 384,759 383,142 384,871 383,709 Units outstanding -basic

Weighted averageCommon Shares and 385,973 386,177 385,652 386,896 Units outstanding -diluted

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

Equity Residential

Consolidated Balance Sheets

(Amounts in thousands except for share amounts)

(Unaudited)

September 30, December 31,

2020 2019

ASSETS

Land $ 5,794,771 $ 5,936,188

Depreciable property 21,076,222 21,319,101

Projects under development 337,696 181,630

Land held for development 103,900 96,688

Investment in real estate 27,312,589 27,533,607

Accumulated depreciation (7,738,318 ) (7,276,786 )

Investment in real estate, net 19,574,271 20,256,821

Investments in unconsolidated entities 54,828 52,238

Cash and cash equivalents 178,333 45,753

Restricted deposits 56,881 71,246

Right-of-use assets 502,184 512,774

Other assets 257,481 233,937

Total assets $ 20,623,978 $ 21,172,769



LIABILITIES AND EQUITY

Liabilities:

Mortgage notes payable, net $ 2,313,833 $ 1,941,610

Notes, net 6,082,897 6,077,513

Line of credit and commercial paper - 1,017,833

Accounts payable and accrued expenses 158,611 94,350

Accrued interest payable 65,669 66,852

Lease liabilities 329,684 331,334

Other liabilities 331,522 346,963

Security deposits 61,453 70,062

Distributions payable 232,237 218,326

Total liabilities 9,575,906 10,164,843



Commitments and contingencies



Redeemable Noncontrolling Interests - Operating 293,706 463,400 Partnership

Equity:

Shareholders' equity:

Preferred Shares of beneficial interest, $0.01par value;

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

outstanding as of September 30, 2020 and 37,280 37,280 December 31, 2019

Common Shares of beneficial interest, $0.01 parvalue;

1,000,000,000 shares authorized; 372,239,249shares issued

and outstanding as of September 30, 2020 and371,670,884

shares issued and outstanding as of December 3,722 3,717 31, 2019

Paid in capital 9,166,018 8,965,577

Retained earnings 1,371,938 1,386,495

Accumulated other comprehensive income (loss) (61,478 ) (77,563 )

Total shareholders' equity 10,517,480 10,315,506

Noncontrolling Interests:

Operating Partnership 232,516 227,837

Partially Owned Properties 4,370 1,183

Total Noncontrolling Interests 236,886 229,020

Total equity 10,754,366 10,544,526

Total liabilities and equity $ 20,623,978 $ 21,172,769

Equity Residential

Portfolio Summary

As of September 30, 2020

% of Stabilized

Average

Apartment

Budgeted

Rental

Markets/Metro Areas

Properties

Units

NOI

Rate

Los Angeles

72

16,603

19.0

%

$

2,488

Orange County

13

4,028

4.4

%

2,243

San Diego

12

3,385

3.8

%

2,405

Subtotal - Southern California

97

24,016

27.2

%

2,435

San Francisco

48

12,707

19.8

%

3,202

Washington DC

47

14,731

15.8

%

2,449

New York

37

9,606

14.6

%

3,805

Seattle

46

9,454

11.0

%

2,422

Boston

25

6,430

10.1

%

3,079

Denver

5

1,624

1.5

%

2,041

Total

305

78,568

100.0

%

$

2,765

Equity Residential

Portfolio Summary

As of September 30, 2020

% of Average Stabilized

Apartment Budgeted Rental

Markets/Metro Areas Properties Units NOI Rate



Los Angeles 72 16,603 19.0 % $ 2,488

Orange County 13 4,028 4.4 % 2,243

San Diego 12 3,385 3.8 % 2,405

Subtotal - Southern 97 24,016 27.2 % 2,435 California



San Francisco 48 12,707 19.8 % 3,202

Washington DC 47 14,731 15.8 % 2,449

New York 37 9,606 14.6 % 3,805

Seattle 46 9,454 11.0 % 2,422

Boston 25 6,430 10.1 % 3,079

Denver 5 1,624 1.5 % 2,041



Total 305 78,568 100.0 % $ 2,765

Properties

Apartment Units

Wholly Owned Properties

288

75,007

Master-Leased Properties - Consolidated

1

162

Partially Owned Properties - Consolidated

16

3,399

305

78,568

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

Properties Apartment Units



Wholly Owned Properties 288 75,007

Master-Leased Properties - Consolidated 1 162

Partially Owned Properties - Consolidated 16 3,399



305 78,568

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

Equity Residential

Portfolio Rollforward Q3 2020

($ in thousands)

Properties Apartment Purchase Acquisition Units Price Cap Rate



6/30 / 304 78,410 2020



Acquisitions:

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



9/30 / 305 78,568 2020

Portfolio Rollforward 2020

($ in thousands)

Properties

Apartment Units

Purchase Price

Acquisition Cap Rate

12/31/2019

309

79,962

Acquisitions:

Consolidated Rental Properties - Not Stabilized (A)

1

158

$

48,860

4.7

%

Sales Price

Disposition Yield

Dispositions:

Consolidated Rental Properties

(5

)

(1,552

)

$

(754,361

)

(4.7

%)

9/30/2020

305

78,568

Portfolio Rollforward 2020

($ in thousands)

Properties Apartment Purchase Acquisition Units Price Cap Rate



12/ 31/ 309 79,962 2019



Acquisitions:

ConsolidatedRentalProperties - 1 158 $ 48,860 4.7 %NotStabilized(A)



Sales Disposition Price Yield



Dispositions:

ConsolidatedRental (5 ) (1,552 ) $ (754,361 ) (4.7 %)Properties



9/30 / 305 78,568 2020

(A)

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

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

Equity Residential

Third Quarter 2020 vs. Third Quarter 2019

Same Store Results/Statistics Including 75,596 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

Third Quarter 2020

Third Quarter 2019

Residential

% Change

Non- Residential

% Change

Total

% Change

Residential

Non- Residential

Total

Revenues

$

597,210

(1)

(5.0%)

$

5,887

(2)

(75.5%)

$

603,097

(7.5%)

Revenues

$

628,345

$

23,985

$

652,330

Expenses

$

197,440

3.0%

$

5,718

10.3%

$

203,158

3.2%

Expenses

$

191,677

$

5,186

$

196,863

NOI

$

399,770

(8.4%)

$

169

(99.1%)

$

399,939

(12.2%)

NOI

$

436,668

$

18,799

$

455,467

Average Rental Rate

$

2,781

(3.2%)

Average Rental Rate

$

2,874

Physical Occupancy

94.8

%

(1.7%)

Physical Occupancy

96.5

%

Turnover

17.7

%

1.6%

Turnover

16.1

%

Equity Residential

Third Quarter 2020 vs. Third Quarter 2019

Same Store Results/Statistics Including 75,596 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

Third Quarter 2020 Third Quarter 2019

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



Revenues $ 597,210 (1) (5.0%) $ 5,887 (2) (75.5%) $ 603,097 (7.5%) Revenues $ 628,345 $ 23,985 $ 652,330

Expenses $ 197,440 3.0% $ 5,718 10.3% $ 203,158 3.2% Expenses $ 191,677 $ 5,186 $ 196,863

NOI $ 399,770 (8.4%) $ 169 (99.1%) $ 399,939 (12.2%) NOI $ 436,668 $ 18,799 $ 455,467



Average $ 2,781 (3.2%) Average $ 2,874 Rental Rate Rental Rate

Physical 94.8 % (1.7%) Physical 96.5 % Occupancy Occupancy

Turnover 17.7 % 1.6% Turnover 16.1 %

Third Quarter 2020 vs. Second Quarter 2020

Same Store Results/Statistics Including 78,030 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

Third Quarter 2020

Second Quarter 2020

Residential

% Change

Non- Residential

% Change

Total

% Change

Residential

Non- Residential

Total

Revenues

$

613,726

(1)

(2.7%)

$

6,126

(2)

(58.5%)

$

619,852

(4.0%)

Revenues

$

630,951

$

14,766

$

645,717

Expenses

$

202,964

5.9%

$

5,787

9.7%

$

208,751

6.0%

Expenses

$

191,728

$

5,273

$

197,001

NOI

$

410,762

(6.5%)

$

339

(96.4%)

$

411,101

(8.4%)

NOI

$

439,223

$

9,493

$

448,716

Average Rental Rate

$

2,769

(2.6%)

Average Rental Rate

$

2,844

Physical Occupancy

94.8

%

0.0%

Physical Occupancy

94.8

%

Turnover

17.9

%

6.1%

Turnover

11.8

%

Third Quarter 2020 vs. Second Quarter 2020

Same Store Results/Statistics Including 78,030 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

Third Quarter 2020 Second Quarter 2020

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



Revenues $ 613,726 (1) (2.7%) $ 6,126 (2) (58.5%) $ 619,852 (4.0%) Revenues $ 630,951 $ 14,766 $ 645,717

Expenses $ 202,964 5.9% $ 5,787 9.7% $ 208,751 6.0% Expenses $ 191,728 $ 5,273 $ 197,001

NOI $ 410,762 (6.5%) $ 339 (96.4%) $ 411,101 (8.4%) NOI $ 439,223 $ 9,493 $ 448,716



Average $ 2,769 (2.6%) Average $ 2,844 Rental Rate Rental Rate

Physical 94.8 % 0.0% Physical 94.8 % Occupancy Occupancy

Turnover 17.9 % 6.1% Turnover 11.8 %

(1)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 6.2% in the third quarter of 2020 compared to the third quarter of 2019 and 3.8% in the third quarter of 2020 compared to the second quarter of 2020. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail and reconciliations.

(2)

Non-Residential operations for the third quarter of 2020 include a $10.6 million non-cash write-off of Non-Residential straight-line lease receivables. The decline in Non-Residential revenues is primarily driven by the deferral/abatement of rent, higher bad debt (inclusive of the Non-Residential straight-line write-off), and to a lesser extent, lower public parking income.

With Leasing Concessions reflected on a cash basis, Same Store Residential(1) Revenues decreased 6.2% in the third quarter of 2020 compared to the third quarter of 2019 and 3.8% in the third quarter of 2020 compared to the second quarter of 2020. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail and reconciliations.



Non-Residential operations for the third quarter of 2020 include a $10.6(2) million non-cash write-off of Non-Residential straight-line lease receivables. The decline in Non-Residential revenues is primarily driven by the deferral/abatement of rent, higher bad debt (inclusive of the Non-Residential straight-line write-off), and to a lesser extent, lower public parking income.

Equity Residential

September YTD 2020 vs. September YTD 2019

Same Store Results/Statistics Including 74,264 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

September YTD 2020

September YTD 2019

Residential

% Change

Non- Residential

% Change

Total

% Change

Residential

Non- Residential

Total

Revenues

$

1,811,101

(1)

(1.0%)

$

43,282

(2)

(39.0%)

$

1,854,383

(2.4%)

Revenues

$

1,829,896

$

70,924

$

1,900,820

Expenses

$

569,970

1.7%

$

16,737

5.6%

$

586,707

1.8%

Expenses

$

560,225

$

15,845

$

576,070

NOI

$

1,241,131

(2.2%)

$

26,545

(51.8%)

$

1,267,676

(4.3%)

NOI

$

1,269,671

$

55,079

$

1,324,750

Average Rental Rate

$

2,843

0.1%

Average Rental Rate

$

2,841

Physical Occupancy

95.4

%

(1.0%)

Physical Occupancy

96.4

%

Turnover

39.1

%

(0.3%)

Turnover

39.4

%

Equity Residential

September YTD 2020 vs. September YTD 2019

Same Store Results/Statistics Including 74,264 Same Store Apartment Units

$ in thousands (except for Average Rental Rate)

September YTD 2020 September YTD 2019

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



Revenues $ 1,811,101 (1) (1.0%) $ 43,282 (2) (39.0%) $ 1,854,383 (2.4%) Revenues $ 1,829,896 $ 70,924 $ 1,900,820

Expenses $ 569,970 1.7% $ 16,737 5.6% $ 586,707 1.8% Expenses $ 560,225 $ 15,845 $ 576,070

NOI $ 1,241,131 (2.2%) $ 26,545 (51.8%) $ 1,267,676 (4.3%) NOI $ 1,269,671 $ 55,079 $ 1,324,750



Average AverageRental $ 2,843 0.1% Rental $ 2,841 Rate Rate

Physical 95.4 % (1.0%) Physical 96.4 % Occupancy Occupancy

Turnover 39.1 % (0.3%) Turnover 39.4 %

(1)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 1.6% in the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail and reconciliations.

(2)

Non-Residential operations for the nine months ended September 30, 2020 include a $12.9 million non-cash write-off of Non-Residential straight-line lease receivables. The decline in Non-Residential revenues is primarily driven by the deferral/abatement of rent, higher bad debt (inclusive of the Non-Residential straight-line write-off), and to a lesser extent, lower public parking income.

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 1.6% in the nine months ended September 30, 2020(1) compared to the nine months ended September 30, 2019. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail and reconciliations.



Non-Residential operations for the nine months ended September 30, 2020 include a $12.9 million non-cash write-off of Non-Residential straight-line(2) lease receivables. The decline in Non-Residential revenues is primarily driven by the deferral/abatement of rent, higher bad debt (inclusive of the Non-Residential straight-line write-off), and to a lesser extent, lower public parking income.

Same Store Resident/Tenant Accounts Receivable Balances

Including 74,264 Same Store Apartment Units

$ in thousands

Residential

Non-Residential

Balance Sheet (Other assets):

September 30, 2020

June 30, 2020

September 30, 2020

June 30, 2020

Resident/tenant accounts receivable balances

$

23,797

$

18,175

$

7,635

$

4,815

Allowance for doubtful accounts

(15,201

)

(6,518

)

(6,444

)

(2,416

)

Net receivable balances

$

8,596

(1)

$

11,657

$

1,191

$

2,399

Straight-line receivable balances

$

10,536

$

2,990

$

13,727

$

24,161

Same Store Resident/Tenant Accounts Receivable Balances

Including 74,264 Same Store Apartment Units

$ in thousands

Residential Non-Residential

Balance Sheet (Other September June 30, September June 30, assets): 30, 2020 2020 30, 2020 2020

Resident/tenant accounts $ 23,797 $ 18,175 $ 7,635 $ 4,815 receivable balances

Allowance for doubtful (15,201 ) (6,518 ) (6,444 ) (2,416 )accounts

Net receivable balances $ 8,596 (1) $ 11,657 $ 1,191 $ 2,399



Straight-line $ 10,536 $ 2,990 $ 13,727 $ 24,161 receivable balances

(1)

The Company held Residential security deposits approximating 27.5% of the net receivable balance at September 30, 2020.

(1) The Company held Residential security deposits approximating 27.5% of the net receivable balance at September 30, 2020.

Same Store Residential Bad Debt

Including 74,264 Same Store Apartment Units

$ in thousands

September

September

Income Statement (Rental income):

Q3 2020

YTD 2020

YTD 2019

Bad Debt, Net

$

15,064

$

27,301

$

8,261

% of Same Store Residential Revenues

2.6

%

1.5

%

0.5

%

Same Store Residential Bad Debt

Including 74,264 Same Store Apartment Units

$ in thousands

September September

Income Statement (Rental income): Q3 2020 YTD 2020 YTD 2019

Bad Debt, Net $ 15,064 $ 27,301 $ 8,261

% of Same Store Residential Revenues 2.6 % 1.5 % 0.5 %

Equity Residential

Third Quarter 2020 vs. Third Quarter 2019

Same Store Residential Results/Statistics by Market

Increase (Decrease) from Prior Year's Quarter

Markets/Metro Areas

Apartment Units

Q3 2020 % of Actual NOI

Q3 2020 Average Rental Rate

Q3 2020 Weighted Average Physical Occupancy %

Q3 2020 Turnover

Revenues

Expenses

NOI

Average Rental Rate

Physical Occupancy

Turnover

Los Angeles

15,968

19.5

%

$

2,497

96.0

%

15.0

%

(5.6

%)

1.5

%

(8.6

%)

(5.0

%)

(0.6

%)

(1.7

%)

Orange County

4,028

4.9

%

2,243

96.8

%

15.9

%

(1.5

%)

2.9

%

(2.8

%)

(1.7

%)

0.2

%

(1.4

%)

San Diego

3,385

4.4

%

2,405

96.8

%

17.4

%

(1.4

%)

(1.9

%)

(1.2

%)

(1.5

%)

0.2

%

(1.1

%)

Subtotal - Southern California

23,381

28.8

%

2,440

96.2

%

15.5

%

(4.4

%)

1.2

%

(6.6

%)

(4.0

%)

(0.4

%)

(1.6

%)

San Francisco

12,570

20.7

%

3,193

94.4

%

18.5

%

(5.8

%)

3.0

%

(8.7

%)

(4.4

%)

(1.5

%)

2.4

%

Washington DC

14,077

16.7

%

2,445

95.6

%

17.5

%

(1.2

%)

2.7

%

(3.0

%)

(0.2

%)

(1.0

%)

0.9

%

New York

9,606

13.0

%

3,805

91.3

%

20.3

%

(9.2

%)

2.6

%

(17.9

%)

(3.7

%)

(5.6

%)

7.0

%

Seattle

8,616

10.3

%

2,431

94.7

%

17.2

%

(2.6

%)

9.1

%

(7.1

%)

(0.7

%)

(1.8

%)

2.1

%

Boston

6,346

9.4

%

3,079

93.6

%

20.6

%

(5.8

%)

3.2

%

(9.4

%)

(3.0

%)

(2.8

%)

4.2

%

Denver

1,000

1.1

%

2,146

94.5

%

24.4

%

(3.8

%)

9.8

%

(9.0

%)

(2.7

%)

(1.2

%)

3.4

%

Total

75,596

100.0

%

$

2,781

94.8

%

17.7

%

(5.0

%)

(1)

3.0

%

(8.4

%)

(3.2

%)

(1.7

%)

1.6

%

Equity Residential

Third Quarter 2020 vs. Third Quarter 2019

Same Store Residential Results/Statistics by Market

Increase (Decrease) from Prior Year's Quarter

Q3 2020 Q3 2020 Q3 2020 Weighted AverageMarkets/Metro Areas Apartment % of Average Average Q3 2020 Revenues Expenses NOI Rental Physical Turnover Units Actual Rental Physical Turnover Rate Occupancy NOI Rate Occupancy %



Los Angeles 15,968 19.5 % $ 2,497 96.0 % 15.0 % (5.6 %) 1.5 % (8.6 %) (5.0 %) (0.6 %) (1.7 %)

Orange County 4,028 4.9 % 2,243 96.8 % 15.9 % (1.5 %) 2.9 % (2.8 %) (1.7 %) 0.2 % (1.4 %)

San Diego 3,385 4.4 % 2,405 96.8 % 17.4 % (1.4 %) (1.9 %) (1.2 %) (1.5 %) 0.2 % (1.1 %)

Subtotal - Southern 23,381 28.8 % 2,440 96.2 % 15.5 % (4.4 %) 1.2 % (6.6 %) (4.0 %) (0.4 %) (1.6 %)California



San Francisco 12,570 20.7 % 3,193 94.4 % 18.5 % (5.8 %) 3.0 % (8.7 %) (4.4 %) (1.5 %) 2.4 %

Washington DC 14,077 16.7 % 2,445 95.6 % 17.5 % (1.2 %) 2.7 % (3.0 %) (0.2 %) (1.0 %) 0.9 %

New York 9,606 13.0 % 3,805 91.3 % 20.3 % (9.2 %) 2.6 % (17.9 %) (3.7 %) (5.6 %) 7.0 %

Seattle 8,616 10.3 % 2,431 94.7 % 17.2 % (2.6 %) 9.1 % (7.1 %) (0.7 %) (1.8 %) 2.1 %

Boston 6,346 9.4 % 3,079 93.6 % 20.6 % (5.8 %) 3.2 % (9.4 %) (3.0 %) (2.8 %) 4.2 %

Denver 1,000 1.1 % 2,146 94.5 % 24.4 % (3.8 %) 9.8 % (9.0 %) (2.7 %) (1.2 %) 3.4 %



Total 75,596 100.0 % $ 2,781 94.8 % 17.7 % (5.0 %) (1) 3.0 % (8.4 %) (3.2 %) (1.7 %) 1.6 %

(1)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 6.2% in the third quarter of 2020 compared to the third quarter of 2019. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail and reconciliations.

Note: The above table reflects Residential same store results only, which account for approximately 97.6% of total revenues.

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 6.2% in the third quarter of 2020 compared to the third(1) quarter of 2019. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail and reconciliations.

Note: The above table reflects Residential same store results only, which account for approximately 97.6% of total revenues.

Equity Residential

Third Quarter 2020 vs. Second Quarter 2020

Same Store Residential Results/Statistics by Market

Increase (Decrease) from Prior Quarter

Q3 2020 Q3 2020 Q3 2020 Weighted AverageMarkets/Metro Areas Apartment % of Average Average Q3 2020 Revenues Expenses NOI Rental Physical Turnover Units Actual Rental Physical Turnover Rate Occupancy NOI Rate Occupancy %



Los Angeles 16,603 19.6 % $ 2,488 95.9 % 15.4 % (2.5 %) 5.3 % (5.9 %) (3.9 %) 1.3 % 3.3 %

Orange County 4,028 4.8 % 2,243 96.8 % 15.9 % (0.3 %) 9.8 % (3.3 %) (0.9 %) 0.5 % 6.1 %

San Diego 3,385 4.2 % 2,405 96.8 % 17.4 % (0.1 %) 4.2 % (1.6 %) (0.9 %) 0.8 % 5.6 %

Subtotal - Southern 24,016 28.6 % 2,435 96.2 % 15.8 % (1.9 %) 5.7 % (4.8 %) (3.0 %) 1.1 % 4.2 %California



San Francisco 12,707 20.4 % 3,202 94.4 % 18.6 % (4.0 %) 4.2 % (6.8 %) (3.6 %) (0.4 %) 6.9 %

Washington DC 14,569 16.8 % 2,449 95.6 % 17.6 % (0.1 %) 10.2 % (4.4 %) (0.4 %) 0.2 % 6.3 %

New York 9,606 12.7 % 3,805 91.3 % 20.3 % (5.6 %) 3.5 % (12.8 %) (2.7 %) (2.8 %) 8.8 %

Seattle 9,078 10.6 % 2,438 94.6 % 17.5 % (2.3 %) 4.3 % (5.0 %) (1.5 %) (0.8 %) 5.9 %

Boston 6,430 9.3 % 3,079 93.5 % 20.7 % (3.0 %) 9.3 % (7.6 %) (3.0 %) 0.0 % 7.1 %

Denver 1,624 1.6 % 2,041 95.1 % 22.7 % 0.8 % 10.1 % (2.9 %) (0.3 %) 1.0 % 5.6 %



Total 78,030 100.0 % $ 2,769 94.8 % 17.9 % (2.7 %) (1) 5.9 % (6.5 %) (2.6 %) 0.0 % 6.1 %

(1)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 3.8% in the third quarter of 2020 compared to the second quarter of 2020. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail and reconciliations.

Note: The above table reflects Residential same store results only, which account for approximately 97.6% of total revenues.

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 3.8% in the third quarter of 2020 compared to the second(1) quarter of 2020. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail and reconciliations.

Note: The above table reflects Residential same store results only, which account for approximately 97.6% of total revenues.

Equity Residential

September YTD 2020 vs. September YTD 2019

Same Store Residential Results/Statistics by Market

Increase (Decrease) from Prior Year

Sept. YTD Sept. YTD Sept. YTD 20 Apartment 20 20 Weighted Sept. Average PhysicalMarkets/Metro Areas Units % of Average Average YTD 20 Revenues Expenses NOI Rental Occupancy Turnover Actual Rental Physical Turnover Rate NOI Rate Occupancy %



Los Angeles 15,968 19.8 % $ 2,575 95.5 % 38.2 % (1.8 %) 0.3 % (2.8 %) (1.0 %) (0.8 %) (4.3 %)

Orange County 4,028 4.9 % 2,262 96.6 % 34.7 % 1.0 % 1.1 % 0.9 % 0.7 % 0.2 % (6.7 %)

San Diego 3,385 4.2 % 2,425 96.5 % 41.2 % 0.8 % 0.7 % 0.9 % 0.8 % 0.0 % (3.6 %)

Subtotal - Southern 23,381 28.9 % 2,499 95.9 % 38.0 % (1.0 %) 0.5 % (1.6 %) (0.5 %) (0.5 %) (4.6 %)California



San Francisco 12,183 20.6 % 3,292 95.4 % 39.7 % (1.3 %) 2.8 % (2.6 %) (0.3 %) (0.9 %) 0.7 %

Washington DC 13,711 16.2 % 2,461 95.8 % 37.4 % 0.4 % 0.9 % 0.2 % 1.4 % (0.8 %) 0.1 %

New York 9,475 13.6 % 3,891 94.0 % 39.1 % (3.3 %) 2.5 % (7.7 %) (0.5 %) (2.8 %) 7.6 %

Seattle 8,442 10.2 % 2,456 95.8 % 40.0 % 1.6 % 4.7 % 0.3 % 2.3 % (0.7 %) (3.2 %)

Boston 6,346 9.7 % 3,145 94.3 % 43.3 % (1.3 %) (0.2 %) (1.7 %) 0.7 % (1.9 %) 5.3 %

Denver 726 0.8 % 2,123 94.5 % 54.5 % (1.8 %) 3.7 % (3.7 %) (0.1 %) (1.8 %) 3.3 %



Total 74,264 100.0 % $ 2,843 95.4 % 39.1 % (1.0 %) (1) 1.7 % (2.2 %) 0.1 % (1.0 %) (0.3 %)

(1)

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 1.6% in the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail and reconciliations.

Note: The above table reflects Residential same store results only, which account for approximately 97.6% of total revenues.

With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues decreased 1.6% in the nine months ended September 30, 2020(1) compared to the nine months ended September 30, 2019. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail and reconciliations.

Note: The above table reflects Residential same store results only, which account for approximately 97.6% of total revenues.

Equity Residential

Same Store Residential Net Effective Lease Pricing Statistics

For 74,264 Same Store Apartment Units

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

Markets/ Q3 Q3 Q3 Q3Metro Q3 2020 2019 2020 2019 Q3 2020 2019 Areas



Los (8.3 %) (0.1 %) (0.1 %) 5.3 % (4.7 %) 2.4 %Angeles

Orange (4.6 %) (0.2 %) 1.2 % 5.6 % (1.5 %) 2.6 %County

San Diego (3.9 %) (0.8 %) 1.6 % 5.8 % (1.3 %) 2.0 %

Subtotal -Southern (7.1 %) (0.2 %) 0.4 % 5.4 % (3.6 %) 2.4 %California



San (19.0 %) 0.0 % (5.3 %) 5.4 % (12.7 %) 2.7 %Francisco

Washington (8.3 %) 2.6 % 0.0 % 4.7 % (4.3 %) 3.7 %DC

New York (20.1 %) 2.0 % (1.9 %) 3.9 % (11.5 %) 3.1 %

Seattle (13.6 %) 3.6 % (1.7 %) 7.3 % (7.8 %) 5.5 %

Boston (15.2 %) 3.8 % (1.9 %) 5.7 % (9.1 %) 4.8 %

Denver (10.2 %) (2.1 %) 1.0 % 5.6 % (6.2 %) 0.6 %



Total (13.5 %) 1.3 % (1.6 %) 5.2 % (7.9 %) 3.3 %

(1)

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

(2)

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

(3)

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

New Lease Change - The net effective change in rent (inclusive of Leasing(1) Concessions) for a lease with a new or transferring resident compared to the rent for the prior lease of the identical apartment unit, regardless of lease term.



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



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

Equity Residential

Third Quarter 2020 vs. Third Quarter 2019

Total Same Store Operating Expenses Including 75,596 Same Store Apartment Units

$ in thousands

Q3 2020

Q3 2019

$ Change (1)

% Change

% of Q3 2020 Operating Expenses

Real estate taxes

$

87,334

$

83,337

$

3,997

4.8

%

43.0

%

On-site payroll

42,503

42,565

(62

)

(0.1

%)

20.9

%

Utilities

27,282

26,789

493

1.8

%

13.4

%

Repairs and maintenance

26,602

25,457

1,145

4.5

%

13.1

%

Insurance

6,246

5,268

978

18.6

%

3.1

%

Leasing and advertising

3,024

2,792

232

8.3

%

1.5

%

Other on-site operating expenses

10,167

10,655

(488

)

(4.6

%)

5.0

%

Total Same Store Operating Expenses (2)

(includes Residential and Non-Residential)

$

203,158

$

196,863

$

6,295

3.2

%

100.0

%

Equity Residential

Third Quarter 2020 vs. Third Quarter 2019

Total Same Store Operating Expenses Including 75,596 Same Store Apartment Units

$ in thousands

$ % of Q3 2020 Q3 2019 Change % Q3 2020 (1) Change Operating Expenses



Real estate $ 87,334 $ 83,337 $ 3,997 4.8 % 43.0 %taxes

On-site payroll 42,503 42,565 (62 ) (0.1 %) 20.9 %

Utilities 27,282 26,789 493 1.8 % 13.4 %

Repairs and 26,602 25,457 1,145 4.5 % 13.1 %maintenance

Insurance 6,246 5,268 978 18.6 % 3.1 %

Leasing and 3,024 2,792 232 8.3 % 1.5 %advertising

Other on-siteoperating 10,167 10,655 (488 ) (4.6 %) 5.0 %expenses



Total Same StoreOperatingExpenses (2) $ 203,158 $ 196,863 $ 6,295 3.2 % 100.0 %(includesResidential andNon-Residential)

September YTD 2020 vs. September YTD 2019

Total Same Store Operating Expenses Including 74,264 Same Store Apartment Units

$ in thousands

September YTD 2020

September YTD 2019

$ Change (1)

% Change

% of September YTD 2020 Operating Expenses

Real estate taxes

$

256,320

$

246,112

$

10,208

4.1

%

43.7

%

On-site payroll

123,061

123,653

(592

)

(0.5

%)

21.0

%

Utilities

77,545

76,183

1,362

1.8

%

13.2

%

Repairs and maintenance

70,635

73,079

(2,444

)

(3.3

%)

12.0

%

Insurance

18,345

15,547

2,798

18.0

%

3.1

%

Leasing and advertising

7,366

7,649

(283

)

(3.7

%)

1.3

%

Other on-site operating expenses

33,435

33,847

(412

)

(1.2

%)

5.7

%

Total Same Store Operating Expenses (2)

(includes Residential and Non-Residential)

$

586,707

$

576,070

$

10,637

1.8

%

100.0

%

September YTD 2020 vs. September YTD 2019

Total Same Store Operating Expenses Including 74,264 Same Store Apartment Units

$ in thousands

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



Real estate $ 256,320 $ 246,112 $ 10,208 4.1 % 43.7 %taxes

On-site payroll 123,061 123,653 (592 ) (0.5 %) 21.0 %

Utilities 77,545 76,183 1,362 1.8 % 13.2 %

Repairs and 70,635 73,079 (2,444 ) (3.3 %) 12.0 %maintenance

Insurance 18,345 15,547 2,798 18.0 % 3.1 %

Leasing and 7,366 7,649 (283 ) (3.7 %) 1.3 %advertising

Other on-siteoperating 33,435 33,847 (412 ) (1.2 %) 5.7 %expenses



Total Same StoreOperatingExpenses (2) $ 586,707 $ 576,070 $ 10,637 1.8 % 100.0 %(includesResidential andNon-Residential)

(1)

The quarter over quarter and YTD over YTD changes are due primarily to:

Real estate taxes - Higher rates and assessed values continue to drive real estate tax growth across most markets. Lower than anticipated appeals activity also impacted growth, particularly during the third quarter of 2020.

On-site payroll - Year over year decrease driven by the transition to an enhanced operating platform, lower employee benefit-related costs and less overtime, partially offset by one-time frontline worker bonuses.

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

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

Leasing and advertising - Quarter over quarter increase primarily driven by the write-off of a Non-Residential deferred leasing cost. Year over year decrease primarily due to suspension of in-person resident social activities sponsored by the Company.

(2)

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

(1) The quarter over quarter and YTD over YTD changes are due primarily to:



Real estate taxes - Higher rates and assessed values continue to drive real estate tax growth across most markets. Lower than anticipated appeals activity also impacted growth, particularly during the third quarter of 2020.



On-site payroll - Year over year decrease driven by the transition to an enhanced operating platform, lower employee benefit-related costs and less overtime, partially offset by one-time frontline worker bonuses.



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



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



Leasing and advertising - Quarter over quarter increase primarily driven by the write-off of a Non-Residential deferred leasing cost. Year over year decrease primarily due to suspension of in-person resident social activities sponsored by the Company.



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

Equity Residential

Debt Summary as of September 30, 2020

($ in thousands)

Debt Balances (1)

% of Total

Weighted Average Rates (1)

Weighted Average Maturities (years)

Secured

$

2,313,833

27.6

%

3.39

%

6.9

Unsecured

6,082,897

72.4

%

3.91

%

10.1

Total

$

8,396,730

100.0

%

3.78

%

9.2

Fixed Rate Debt:

Secured - Conventional

$

1,935,286

23.1

%

3.84

%

5.3

Unsecured - Public

6,082,897

72.4

%

4.04

%

10.1

Fixed Rate Debt

8,018,183

95.5

%

4.00

%

8.9

Floating Rate Debt:

Secured - Conventional

17,605

0.2

%

3.02

%

1.7

Secured - Tax Exempt

360,942

4.3

%

1.17

%

15.2

Unsecured - Revolving Credit Facility

-

-

1.47

%

4.1

Unsecured - Commercial Paper Program (2)

-

-

1.81

%

-

Floating Rate Debt

378,547

4.5

%

1.50

%

14.6

Total

$

8,396,730

100.0

%

3.78

%

9.2

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

(2) The weighted average amount outstanding for the nine months ended September 30, 2020 was approximately $347.2 million.

Note: The Company capitalized interest of approximately $6.9 million and $4.8 million during the nine months ended September 30, 2020 and 2019, respectively. The Company capitalized interest of approximately $2.8 million and $2.1 million during the quarters ended September 30, 2020 and 2019, respectively.

Equity Residential

Debt Summary as of September 30, 2020

($ in thousands)

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



Secured $ 2,313,833 27.6 % 3.39 % 6.9

Unsecured 6,082,897 72.4 % 3.91 % 10.1



Total $ 8,396,730 100.0 % 3.78 % 9.2

Fixed Rate Debt:

Secured - Conventional $ 1,935,286 23.1 % 3.84 % 5.3

Unsecured - Public 6,082,897 72.4 % 4.04 % 10.1



Fixed Rate Debt 8,018,183 95.5 % 4.00 % 8.9



Floating Rate Debt:

Secured - Conventional 17,605 0.2 % 3.02 % 1.7

Secured - Tax Exempt 360,942 4.3 % 1.17 % 15.2

Unsecured - Revolving - - 1.47 % 4.1 Credit Facility

Unsecured - Commercial - - 1.81 % - Paper Program (2)



Floating Rate Debt 378,547 4.5 % 1.50 % 14.6



Total $ 8,396,730 100.0 % 3.78 % 9.2

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

(2) The weighted average amount outstanding for the nine months ended September 30, 2020 was approximately $347.2 million.

Note: The Company capitalized interest of approximately $6.9 million and $4.8 million during the nine months ended September 30, 2020 and 2019, respectively. The Company capitalized interest of approximately $2.8 million and $2.1 million during the quarters ended September 30, 2020 and 2019, respectively.

Equity Residential

Debt Maturity Schedule as of September 30, 2020

($ in thousands)

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



2020 $ 1,991 $ - $ 1,991 0.0 % 3.40 % 3.40 %

2021 818,366 - 818,366 9.7 % 4.62 % 4.62 %

2022 264,185 18,026 282,211 3.3 % 3.25 % 3.19 %

2023 1,325,588 3,500 1,329,088 15.7 % 3.74 % 3.73 %

2024 - 6,100 6,100 0.1 % N/A 0.13 %

2025 450,000 8,200 458,200 5.4 % 3.38 % 3.32 %

2026 592,025 9,000 601,025 7.1 % 3.58 % 3.53 %

2027 400,000 9,800 409,800 4.8 % 3.25 % 3.18 %

2028 900,000 42,380 942,380 11.1 % 3.79 % 3.62 %

2029 888,120 11,500 899,620 10.6 % 3.30 % 3.26 %

2030+ 2,445,850 288,135 2,733,985 32.2 % 3.56 % 3.21 %

Subtotal 8,086,125 396,641 8,482,766 100.0 % 3.66 % 3.50 %

DeferredFinancingCosts and (67,942 ) (18,094 ) (86,036 ) N/A N/A N/A Unamortized(Discount)



Total $ 8,018,183 $ 378,547 $ 8,396,730 100.0 % 3.66 % 3.50 %

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

Equity Residential

Selected Unsecured Public Debt Covenants

September June 30, 30,

2020 2020

Debt to Adjusted Total Assets (not to exceed 60%) 31.6% 31.8%



Secured Debt to Adjusted Total Assets (not to 9.6% 9.7% exceed 40%)



Consolidated Income Available for Debt Service to

Maximum Annual Service Charges

(must be at least 1.5 to 1) 4.99 4.94



Total Unencumbered Assets to Unsecured Debt

(must be at least 125%) 437.4% 439.5%

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

Selected Credit Ratios

September 30, June 30,

2020 2020

Total debt to Normalized EBITDAre 5.00x 4.82x



Net debt to Normalized EBITDAre 4.89x 4.71x



Unencumbered NOI as a % of total NOI 86.1% 85.8%

Note: See Normalized EBITDAre Reconciliations for detail.

Equity Residential

Capital Structure as of September 30, 2020

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

Secured Debt $ 2,313,833 27.6 %

Unsecured Debt 6,082,897 72.4 %



Total Debt 8,396,730 100.0 % 29.7 %



Common Shares(includes 372,239,249 96.4 % RestrictedShares)

Units(includes OPUnits and 13,879,400 3.6 % RestrictedUnits)



Total Shares 386,118,649 100.0 % and Units

Common SharePrice at $ 51.33 September 30,2020

19,819,470 99.8 %

PerpetualPreferred 37,280 0.2 % Equity (seebelow)



Total Equity 19,856,750 100.0 % 70.3 %



Total Market $ 28,253,480 100.0 %Capitalization

Perpetual Preferred Equity as of September 30, 2020

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

Series

Call Date

Outstanding Shares

Liquidation Value

Annual Dividend Per Share

Annual Dividend Amount

Preferred Shares:

8.29% Series K

12/10/26

745,600

$

37,280

$

4.145

$

3,091

Perpetual Preferred Equity as of September 30, 2020

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

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

Preferred Shares:

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

Equity Residential

Common Share and Unit

Weighted Average Amounts Outstanding

Sept. YTD 2020

Sept. YTD 2019

Q3 2020

Q3 2019

Weighted Average Amounts Outstanding for Net Income Purposes:

Common Shares - basic

371,749,243

370,226,966

371,869,274

370,767,761

Shares issuable from assumed conversion/vesting of:

- OP Units

13,009,281

12,915,512

13,001,245

12,941,406

- long-term compensation shares/units

1,214,047

3,034,089

781,405

3,186,671

Total Common Shares and Units - diluted

385,972,571

386,176,567

385,651,924

386,895,838

Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes:

Common Shares - basic

371,749,243

370,226,966

371,869,274

370,767,761

OP Units - basic

13,009,281

12,915,512

13,001,245

12,941,406

Total Common Shares and OP Units - basic

384,758,524

383,142,478

384,870,519

383,709,167

Shares issuable from assumed conversion/vesting of:

- long-term compensation shares/units

1,214,047

3,034,089

781,405

3,186,671

Total Common Shares and Units - diluted

385,972,571

386,176,567

385,651,924

386,895,838

Period Ending Amounts Outstanding:

Common Shares (includes Restricted Shares)

372,239,249

371,327,332

Units (includes OP Units and Restricted Units)

13,879,400

13,749,690

Total Shares and Units

386,118,649

385,077,022

Equity Residential

Common Share and Unit

Weighted Average Amounts Outstanding

Sept. YTD Sept. YTD Q3 2020 Q3 2019 2020 2019



WeightedAverageAmountsOutstanding for NetIncomePurposes:

CommonShares - 371,749,243 370,226,966 371,869,274 370,767,761 basic

Sharesissuablefrom assumed conversion/vesting of:

- OP Units 13,009,281 12,915,512 13,001,245 12,941,406

- long-termcompensation 1,214,047 3,034,089 781,405 3,186,671 shares/units



Total CommonShares and 385,972,571 386,176,567 385,651,924 386,895,838 Units -diluted



WeightedAverageAmountsOutstanding for FFO andNormalizedFFOPurposes:

CommonShares - 371,749,243 370,226,966 371,869,274 370,767,761 basic

OP Units - 13,009,281 12,915,512 13,001,245 12,941,406 basic



Total CommonShares and 384,758,524 383,142,478 384,870,519 383,709,167 OP Units -basic

Sharesissuablefrom assumed conversion/vesting of:

- long-termcompensation 1,214,047 3,034,089 781,405 3,186,671 shares/units



Total CommonShares and 385,972,571 386,176,567 385,651,924 386,895,838 Units -diluted



PeriodEnding AmountsOutstanding:

CommonShares(includes 372,239,249 371,327,332 RestrictedShares)

Units(includes OPUnits and 13,879,400 13,749,690 RestrictedUnits)



Total Shares 386,118,649 385,077,022 and Units

Equity Residential

Development and Lease-Up Projects as of September 30, 2020

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

No. of

Total Budgeted

Total Book

Total Book Value Not

Estimated/Actual

Projects

Location

Apartment Units

Capital Cost

Value to Date

Placed in Service

Total Debt

Percentage Completed

Initial Occupancy

Completion Date

Stabilization Date

Percentage Leased

Percentage Occupied

Projects Under Development - Wholly Owned:

Alcott Apartments (fka West End Tower)

Boston, MA

470

$

409,749

$

225,141

$

225,141

$

-

56%

Q2 2021

Q3 2021

Q1 2023

-

-

The Edge (fka 4885 Edgemoor Lane) (A)

Bethesda, MD

154

75,271

38,450

38,450

-

50%

Q3 2021

Q3 2021

Q3 2022

-

-

Projects Under Development - Wholly Owned

624

485,020

263,591

263,591

-

Projects Under Development - Partially Owned:

Aero Apartments (B)

Alameda, CA

200

117,794

74,105

74,105

17,605

59%

Q1 2021

Q2 2021

Q2 2022

-

-

Projects Under Development - Partially Owned

200

117,794

74,105

74,105

17,605

Total Projects Under Development

824

$

602,814

$

337,696

$

337,696

$

17,605

Land Held for Development

N/A

N/A

$

103,900

$

103,900

$

-

NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS

Total Budgeted Capital Cost

Q3 2020 NOI

Projects Under Development

$

602,814

$

-

Equity Residential

Development and Lease-Up Projects as of September 30, 2020

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

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

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



ProjectsUnderDevelopment - WhollyOwned:

AlcottApartments Boston, 470 $ 409,749 $ 225,141 $ 225,141 $ - 56% Q2 2021 Q3 2021 Q1 2023 - - (fka West MAEnd Tower)

The Edge(fka 4885 Bethesda, 154 75,271 38,450 38,450 - 50% Q3 2021 Q3 2021 Q3 2022 - - Edgemoor MDLane) (A)



ProjectsUnderDevelopment 624 485,020 263,591 263,591 - - WhollyOwned



ProjectsUnderDevelopment - PartiallyOwned:

Aero Alameda,Apartments CA 200 117,794 74,105 74,105 17,605 59% Q1 2021 Q2 2021 Q2 2022 - - (B)



ProjectsUnderDevelopment 200 117,794 74,105 74,105 17,605 - PartiallyOwned



TotalProjects 824 $ 602,814 $ 337,696 $ 337,696 $ 17,605 UnderDevelopment



Land Heldfor N/A N/A $ 103,900 $ 103,900 $ - Development



NOI TotalCONTRIBUTION Budgeted Q3 2020FROM Capital NOI DEVELOPMENT CostPROJECTS

ProjectsUnder $ 602,814 $ - Development

(A)

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

(B)

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

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



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

Equity Residential

Capital Expenditures to Real Estate

For the Nine Months Ended September 30, 2020

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

Same Store Properties

Non-Same Store Properties/Other

Total

Same Store Avg. Per Apartment Unit

Total Apartment Units

74,264

4,304

78,568

Building Improvements

$

47,977

$

1,977

$

49,954

$

646

Renovation Expenditures (1)

17,682

6

17,688

238

Replacements

24,148

333

24,481

325

Capital Expenditures to Real Estate (2)

$

89,807

$

2,316

$

92,123

$

1,209

Equity Residential

Capital Expenditures to Real Estate

For the Nine Months Ended September 30, 2020

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

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



Total Apartment Units 74,264 4,304 78,568



Building Improvements $ 47,977 $ 1,977 $ 49,954 $ 646



Renovation 17,682 6 17,688 238 Expenditures (1)



Replacements 24,148 333 24,481 325



Capital Expenditures $ 89,807 $ 2,316 $ 92,123 $ 1,209 to Real Estate (2)

(1)

Renovation Expenditures on 782 same store apartment units for the nine months ended September 30, 2020 approximated $22,612 per apartment unit renovated.

(2)

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

Renovation Expenditures on 782 same store apartment units for the nine(1) months ended September 30, 2020 approximated $22,612 per apartment unit renovated.



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

Equity Residential

Normalized EBITDAre Reconciliations

(Amounts in thousands)

Trailing Twelve Months

2020

2019

September 30, 2020

June 30, 2020

Q3

Q2

Q1

Q4

Q3

Net income

$

1,000,823

$

1,183,304

$

95,365

$

271,481

$

332,671

$

301,306

$

277,846

Interest expense incurred, net

348,649

353,711

80,874

81,885

85,590

100,300

85,936

Amortization of deferred financing costs

9,259

10,039

2,101

2,111

2,041

3,006

2,881

Amortization of above/below market lease intangibles

4,391

4,391

1,098

1,098

1,097

1,098

1,098

Depreciation

833,885

844,758

200,605

205,976

212,422

214,882

211,478

Income and other tax expense (benefit)

(2,528

)

(2,525

)

262

187

53

(3,030

)

265

EBITDA

2,194,479

2,393,678

380,305

562,738

633,874

617,562

579,504

Net (gain) loss on sales of real estate properties

(530,455

)

(661,045

)

25

(144,266

)

(207,977

)

(178,237

)

(130,565

)

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

(1,000

)

-

(1,000

)

-

-

-

-

EBITDAre

1,663,024

1,732,633

379,330

418,472

425,897

439,325

448,939

Write-off of pursuit costs (other expenses)

6,295

5,820

1,586

1,651

1,627

1,431

1,111

(Income) loss from investments in unconsolidated entities - operations

4,406

4,312

1,246

1,042

1,157

961

1,152

Net (gain) loss on sales of land parcels

33

(1,866

)

-

-

-

33

(1,899

)

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

(2,353

)

(2,350

)

(3

)

(767

)

(1,582

)

(1

)

-

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

3,936

3,454

500

(1,956

)

163

5,229

18

Advocacy contributions (other expenses)

4,146

2,423

1,728

1,852

501

65

5

Data analytics project (other expenses)

-

1,416

-

-

-

-

1,416

Other

(1,108

)

3

(429

)

(521

)

-

(158

)

682

Normalized EBITDAre

$

1,678,379

$

1,745,845

$

383,958

$

419,773

$

427,763

$

446,885

$

451,424

Balance Sheet Items:

September 30, 2020

June 30, 2020

Total debt

$

8,396,730

$

8,421,859

Cash and cash equivalents

(178,333

)

(187,416

)

Mortgage principal reserves/sinking funds

(13,013

)

(11,895

)

Net debt

$

8,205,384

$

8,222,548

Equity Residential

Normalized EBITDAre Reconciliations

(Amounts in thousands)

Trailing Twelve Months 2020 2019

September June 30, Q3 Q2 Q1 Q4 Q3 30, 2020 2020

Net income $ 1,000,823 $ 1,183,304 $ 95,365 $ 271,481 $ 332,671 $ 301,306 $ 277,846

Interestexpense 348,649 353,711 80,874 81,885 85,590 100,300 85,936 incurred, net

Amortizationof deferred 9,259 10,039 2,101 2,111 2,041 3,006 2,881 financingcosts

Amortizationof above/below 4,391 4,391 1,098 1,098 1,097 1,098 1,098 market leaseintangibles

Depreciation 833,885 844,758 200,605 205,976 212,422 214,882 211,478

Income andother tax (2,528 ) (2,525 ) 262 187 53 (3,030 ) 265 expense(benefit)



EBITDA 2,194,479 2,393,678 380,305 562,738 633,874 617,562 579,504



Net (gain)loss on sales (530,455 ) (661,045 ) 25 (144,266 ) (207,977 ) (178,237 ) (130,565 )of real estateproperties

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



EBITDAre 1,663,024 1,732,633 379,330 418,472 425,897 439,325 448,939



Write-off ofpursuit costs 6,295 5,820 1,586 1,651 1,627 1,431 1,111 (otherexpenses)

(Income) lossfrominvestments in 4,406 4,312 1,246 1,042 1,157 961 1,152 unconsolidatedentities -operations

Net (gain)loss on sales 33 (1,866 ) - - - 33 (1,899 )of landparcels

Insurance/litigationsettlement or (2,353 ) (2,350 ) (3 ) (767 ) (1,582 ) (1 ) - reserve income(interest andother income)

Insurance/litigation/environmentalsettlement or 3,936 3,454 500 (1,956 ) 163 5,229 18 reserveexpense (otherexpenses)

Advocacycontributions 4,146 2,423 1,728 1,852 501 65 5 (otherexpenses)

Data analyticsproject (other - 1,416 - - - - 1,416 expenses)

Other (1,108 ) 3 (429 ) (521 ) - (158 ) 682



Normalized $ 1,678,379 $ 1,745,845 $ 383,958 $ 419,773 $ 427,763 $ 446,885 $ 451,424 EBITDAre



Balance Sheet September June 30, Items: 30, 2020 2020



Total debt $ 8,396,730 $ 8,421,859

Cash and cash (178,333 ) (187,416 ) equivalents

Mortgageprincipal (13,013 ) (11,895 ) reserves/sinking funds

Net debt $ 8,205,384 $ 8,222,548

Note:

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

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

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

Nine Months Ended September 30,

Quarter Ended September 30,

2020

2019

Variance

2020

2019

Variance

Impairment - non-operating assets

$

-

$

-

$

-

$

-

$

-

$

-

Write-off of pursuit costs (other expenses)

4,864

4,098

766

1,586

1,111

475

Prepayment premiums/penalties (interest expense)

-

3,381

(3,381

)

-

3,381

(3,381

)

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

37

2,273

(2,236

)

5

767

(762

)

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

-

6,153

(6,153

)

-

(8,988

)

8,988

Debt extinguishment and preferred share redemption (gains) losses

37

11,807

(11,770

)

5

(4,840

)

4,845

Net (gain) loss on sales of land parcels

-

(2,077

)

2,077

-

(1,899

)

1,899

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

1,022

877

145

352

447

(95

)

Non-operating asset (gains) losses

1,022

(1,200

)

2,222

352

(1,452

)

1,804

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

(2,352

)

(383

)

(1,969

)

(3

)

-

(3

)

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

(1,293

)

1,969

(3,262

)

500

18

482

Advocacy contributions (other expenses)

4,081

205

3,876

1,728

5

1,723

Data analytics project (other expenses)

-

4,199

(4,199

)

-

1,416

(1,416

)

Other

(950

)

549

(1,499

)

(429

)

682

(1,111

)

Other miscellaneous items

(514

)

6,539

(7,053

)

1,796

2,121

(325

)

Adjustments from FFO to Normalized FFO

$

5,409

$

21,244

$

(15,835

)

$

3,739

$

(3,060

)

$

6,799

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

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

Nine Months Ended September 30, Quarter Ended September 30,

2020 2019 Variance 2020 2019 Variance



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



Write-off ofpursuit costs 4,864 4,098 766 1,586 1,111 475 (otherexpenses)



Prepaymentpremiums/penalties - 3,381 (3,381 ) - 3,381 (3,381 )(interestexpense)

Write-off ofunamortizeddeferredfinancing 37 2,273 (2,236 ) 5 767 (762 )costs(interestexpense)

Write-off ofunamortized(premiums)/ - 6,153 (6,153 ) - (8,988 ) 8,988 discounts/OCI(interestexpense)

Debtextinguishmentand preferred 37 11,807 (11,770 ) 5 (4,840 ) 4,845 shareredemption(gains) losses



Net (gain)loss on sales - (2,077 ) 2,077 - (1,899 ) 1,899 of landparcels

(Income) lossfrominvestments inunconsolidated 1,022 877 145 352 447 (95 )entities -non-operatingassets

Non-operatingasset (gains) 1,022 (1,200 ) 2,222 352 (1,452 ) 1,804 losses



Insurance/litigationsettlement or (2,352 ) (383 ) (1,969 ) (3 ) - (3 )reserve income(interest andother income)

Insurance/litigation/environmentalsettlement or (1,293 ) 1,969 (3,262 ) 500 18 482 reserveexpense (otherexpenses)

Advocacycontributions 4,081 205 3,876 1,728 5 1,723 (otherexpenses)

Data analyticsproject (other - 4,199 (4,199 ) - 1,416 (1,416 )expenses)

Other (950 ) 549 (1,499 ) (429 ) 682 (1,111 )

Othermiscellaneous (514 ) 6,539 (7,053 ) 1,796 2,121 (325 )items



Adjustmentsfrom FFO to $ 5,409 $ 21,244 $ (15,835 ) $ 3,739 $ (3,060 ) $ 6,799 Normalized FFO

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

Equity Residential

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

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

(All per share data is diluted)

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

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

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

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

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

Capital Expenditures to Real Estate:

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

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

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

Debt Balances:

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

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

September 30, 2020

Unsecured revolving credit facility commitment $ 2,500,000



Commercial paper balance outstanding -



Unsecured revolving credit facility balance outstanding -



Other restricted amounts (100,949 )



Unsecured revolving credit facility availability $ 2,399,051

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

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

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

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

EBITDA for Real Estate and Normalized EBITDA for Real Estate:

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

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

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

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

Nine Months Ended Quarter Ended September 30, 2020 September 30, 2020



Net Gain (Loss) on Sales of $ 352,218 $ (25 )Real Estate Properties

Accumulated Depreciation Gain (157,471 ) -



Economic Gain (Loss) $ 194,747 $ (25 )

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 Sept. Sept.

YTD 2020 YTD 2019 Q3 2020 Q3 2019

Per Share Per Share Per Per Share Share

EPS - Diluted $ 1.77 $ 1.82 $ 0.24 $ 0.71

Depreciation expense 1.59 1.59 0.52 0.54

Net (gain) loss on sales (0.88 ) (0.88 ) - (0.33 )

Impairment - operating - - - - assets



FFO per share - Diluted 2.48 2.53 0.76 0.92



Impairment - non-operating - - - - assets

Write-off of pursuit costs 0.01 0.01 - -

Debt extinguishment andpreferred share

redemption (gains) losses - 0.03 - (0.01 )

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

Other miscellaneous items - 0.01 0.01 -



Normalized FFO per share - $ 2.49 $ 2.58 $ 0.77 $ 0.91 Diluted

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

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

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

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

Nine Months Ended September Quarter Ended September 30, 30,

2020 2019 2020 2019

Operating income $ 961,384 $ 947,232 $ 182,410 $ 368,338

Adjustments:

Property management 71,513 72,705 20,196 21,940

General and 37,212 41,127 10,859 11,417 administrative

Depreciation 619,003 616,201 200,605 211,478

Net (gain) loss onsales of realestate

properties (352,218 ) (269,400 ) 25 (130,565 )

Total NOI $ 1,336,894 $ 1,407,865 $ 414,095 $ 482,608

Rental income:

Same store $ 1,854,383 $ 1,900,820 $ 603,097 $ 652,330

Non-same store/ 103,887 115,976 19,336 32,790 other

Total rental income 1,958,270 2,016,796 622,433 685,120

Operating expenses:

Same store 586,707 576,070 203,158 196,863

Non-same store/ 34,669 32,861 5,180 5,649 other

Total operating 621,376 608,931 208,338 202,512 expenses

NOI:

Same store 1,267,676 1,324,750 399,939 455,467

Non-same store/ 69,218 83,115 14,156 27,141 other

Total NOI $ 1,336,894 $ 1,407,865 $ 414,095 $ 482,608

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

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

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

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.

Renewal % - Leases renewed expressed as a percentage of total renewal offers extended during the reporting period.

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

Residential - Consists of multifamily apartment revenues and expenses.

Same Store Operating Expenses:

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

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

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

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

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

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

Same Store Residential Revenues with Leasing Concessions on a cash basis is 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.

The following table presents reconciliations of Same Store Residential Revenues on a GAAP basis to Same Store Residential Revenues with Leasing Concessions on a cash basis:

Quarter over Quarter Sequential Year over Year

Q3 2020 Q3 2019 Q3 2020 Q2 2020 Sept. YTD Sept. YTD 2020 2019

Same StoreResidential

Revenues(GAAP $ 597,210 $ 628,345 $ 613,726 $ 630,951 $ 1,811,101 $ 1,829,896 Basis)

LeasingConcessions 3,973 675 4,376 1,666 5,821 2,665 amortized

LeasingConcessions (11,585 ) (529 ) (12,183 ) (2,861 ) (15,329 ) (1,278 )granted

Same StoreResidential

RevenueswithLeasing

Concessionson a cash $ 589,598 $ 628,491 $ 605,919 $ 629,756 $ 1,801,593 $ 1,831,283 basis



% change -GAAP (5.0 %) (2.7 %) (1.0 %) revenue



% change -cash (6.2 %) (3.8 %) (1.6 %) revenue

% of Stabilized Budgeted NOI - Represents original budgeted 2020 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 September 30, 2020. In case of debt for which fair value hedges are in place, the rate payable under the corresponding derivatives is used in lieu of the contractual interest rate.

Weighted Average Rates - Interest expense for each debt instrument for the nine months ended September 30, 2020 weighted by its average principal balance for the same period. Interest expense includes amortization of premiums, discounts and other comprehensive income on debt and related derivative instruments. In case of debt for which derivatives are in place, the income or expense recognized under the corresponding derivatives is included in the total interest expense for the period.

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