10-KPeriod: FY2010

EQUITY RESIDENTIAL Annual Report, Year Ended Dec 31, 2010

Filed February 24, 2011For Securities:EQR

Summary

Equity Residential (EQR) is a prominent real estate investment trust (REIT) focused on acquiring, developing, and managing high-quality apartment properties across top U.S. growth markets. As of December 31, 2010, EQR owned or partially owned 451 properties with 129,604 apartment units across 17 states and Washington D.C. The company is committed to maximizing risk-adjusted total returns by strategically investing in markets with favorable appreciation conditions, including high barriers to entry, strong economic growth, and attractive quality of life. In 2010, EQR saw a notable recovery from the previous year, characterized by higher occupancy and rent levels. The company was active in acquisitions, investing $1.5 billion in new assets, while also strategically divesting non-core properties. EQR maintains a strong balance sheet with ample liquidity, supported by its $1.425 billion revolving credit facility and a diversified capital structure. The company is optimistic about future growth, anticipating strong same-store revenue and NOI increases in 2011, driven by favorable market conditions and limited new multifamily supply.

Financial Highlights

37 data points
Beta

Revenue

$1.67B

70.4% Gross Margin

Net Income

$283.61M

16.9% Net Margin

EPS (Diluted)

$0.95

Total Assets

$16.18B

Cash & Equivalents

$431.41M

Free Cash Flow

$726.04M

Financial Statements
Beta
Revenue$1.67B
Gross Profit$1.18B
Operating Expenses$1.33B
Operating Income$348.21M
Interest Expense$460.75M
Net Income$283.61M
EPS (Basic)$0.95
EPS (Diluted)$0.95
Shares Outstanding (Basic)282.89M
Shares Outstanding (Diluted)282.89M

Key Highlights

  • 1Equity Residential (EQR) is a leading REIT owning 129,604 apartment units across 451 properties in 17 states and Washington D.C. as of December 31, 2010.
  • 2In 2010, the company acquired $1.5 billion in apartment properties, indicating a return to acquisition activity following a cautious approach in 2009.
  • 3EQR experienced improved operating performance in 2010 with higher occupancy and rent levels compared to 2009.
  • 4The company's strategy focuses on investing in top U.S. growth markets with favorable economic and demographic trends.
  • 5EQR has a significant $1.425 billion unsecured revolving credit facility, providing substantial liquidity.
  • 6The company anticipates strong growth in same-store revenue (4-5%) and NOI (5-7.5%) for 2011.
  • 7EQR has a new dividend policy aiming to distribute approximately 65% of Normalized FFO.

Frequently Asked Questions

Equity Residential is a real estate investment trust (REIT) that acquires, develops, and manages apartment properties. As of December 31, 2010, the company owned or had partial ownership in 451 properties, totaling 129,604 apartment units across 17 states and the District of Columbia.

In 2010, EQR saw improved operating performance compared to 2009, with higher occupancy and rent levels. The company was also more active in acquisitions, investing $1.5 billion in new assets, reflecting a positive recovery in its business operations and the capital markets.

EQR's strategy involves investing in apartment communities located in strategically targeted markets characterized by favorable conditions for multifamily property appreciation. This includes focusing on markets with high barriers to entry, strong economic growth, and attractive quality of life. Capital allocation includes acquisitions, development, strategic dispositions of non-core assets, and a new dividend policy targeting approximately 65% of Normalized FFO.

As of December 31, 2010, EQR had approximately $431.4 million in cash and cash equivalents. The company also had significant availability under its $1.425 billion unsecured revolving credit facility, with $1.28 billion available. EQR's capital structure is diversified with total debt of $9.95 billion, and the company believes it has sufficient liquidity to meet its funding obligations.