10-KPeriod: FY2004

EQUITY RESIDENTIAL Annual Report, Year Ended Dec 31, 2004

Filed March 14, 2005For Securities:EQR

Summary

Equity Residential (EQR) closed out 2004 with a robust portfolio of 939 properties comprising 200,149 apartment units across 32 states and the District of Columbia. The company, operating as a REIT, focuses on maximizing property value, per-share distributions, and shareholder value through strategic investments in high-barrier-to-entry markets with strong economic predictors and attractive quality of life. Financially, EQR maintained a healthy balance sheet with a consolidated debt-to-total market capitalization ratio of 35% as of year-end 2004, well within its policy of staying below 50%. The company generated significant proceeds from property dispositions and debt offerings during the year, which were strategically deployed towards acquisitions, debt repayment, and investments in development projects. While facing increased operating expenses and some challenges in same-store NOI, EQR demonstrated resilience, supported by its diversified portfolio and proactive management strategies.

Key Highlights

  • 1EQR owned and operated 939 properties with 200,149 units across 32 states and D.C. as of December 31, 2004.
  • 2The company maintained a consolidated debt-to-total market capitalization ratio of 35%, indicating a solid financial footing.
  • 3Significant capital was raised through property dispositions ($945.6 million) and debt issuances ($300 million and $500 million notes).
  • 4Capital deployment focused on strategic acquisitions, debt reduction, and investments in development projects.
  • 5Same-store revenues saw a slight increase of 0.9%, while expenses increased by 3.6%, leading to a 0.9% decrease in same-store NOI.
  • 6The company is actively pursuing a new credit facility to replace its existing $700 million unsecured revolving credit facility.
  • 7EQR is committed to its REIT status, adhering to the strict income and distribution requirements.

Frequently Asked Questions

As of December 31, 2004, Equity Residential owned or had partial ownership in 939 properties, totaling 200,149 apartment units spread across 32 states and the District of Columbia. These were categorized into garden-style, mid/high-rise, ranch-style, and military housing properties.

The company maintained a conservative financial structure, reporting a consolidated debt-to-total market capitalization ratio of 35% at year-end 2004. This ratio was well within their policy of maintaining it below 50%. They actively managed their debt through public debt offerings and repaid significant amounts of existing debt.

Total revenues from continuing operations were $1.89 billion. Income from continuing operations was $135.3 million, and net income was $472.3 million. Funds From Operations (FFO) available to Common Shares and OP Units increased by 1.8% to $651.7 million compared to the previous year.

EQR's primary strategies include leveraging its size and scale, investing in strategically targeted markets with high barriers to entry and strong economic predictors, meeting customer needs through diverse product offerings and service, attracting and retaining top talent, and being responsive to market realities. They also focus on acquiring and developing properties in line with these criteria.