10-KPeriod: FY2011

EQUITY RESIDENTIAL Annual Report, Year Ended Dec 31, 2011

Filed February 24, 2012For Securities:EQR

Summary

Equity Residential (EQR), operating through its subsidiary ERP Operating Limited Partnership (ERPOP), is a significant player in the multifamily residential property sector. As of December 31, 2011, the company owned a substantial portfolio of 427 properties with 121,974 apartment units across 15 states and the District of Columbia. EQR's strategy focuses on acquiring and developing high-quality apartment properties in top U.S. growth markets characterized by high barriers to entry, strong economic growth, and desirable quality of life. The company has been actively repositioning its portfolio, divesting from non-core markets and reinvesting in core markets. For the year ended December 31, 2011, EQR reported net income of $935.2 million and diluted earnings per share of $2.95, with a strong focus on maintaining occupancy and rental rates while controlling costs. The company also highlighted its commitment to sustainability and its investment in technology for customer engagement.

Financial Highlights

36 data points
Beta

Revenue

$1.53B

Net Income

$893.59M

58.6% Net Margin

EPS (Diluted)

$2.98

Total Assets

$16.66B

Cash & Equivalents

$383.92M

Free Cash Flow

$800.47M

Financial Statements
Beta
Revenue$1.53B
Operating Expenses$1.12B
Operating Income$406.51M
Interest Expense$460.17M
Net Income$893.59M
EPS (Basic)$2.98
EPS (Diluted)$2.98
Shares Outstanding (Basic)294.86M
Shares Outstanding (Diluted)294.86M

Key Highlights

  • 1Equity Residential's portfolio comprises 427 properties with 121,974 apartment units across 15 states and D.C. as of December 31, 2011.
  • 2The company's strategy prioritizes acquisition and development in 'top United States growth markets' with high barriers to entry.
  • 3EQR reported net income of $935.2 million and diluted EPS of $2.95 for the year ended December 31, 2011.
  • 4A significant portfolio repositioning is underway, with the sale of 124,000 units since 2005 and reinvestment in core markets.
  • 5The company generated $1.5 billion in net proceeds from property dispositions in 2011.
  • 6EQR raised $1.0 billion in ten-year notes (4.625% fixed rate) and $201.9 million through its ATM program in 2011.
  • 7The company has a $1.25 billion unsecured revolving credit facility maturing in July 2014.

Frequently Asked Questions

Equity Residential's primary business is the acquisition, development, and management of high-quality apartment properties. The company focuses on strategically targeted markets in top U.S. growth areas known for favorable multifamily property appreciation.

For the year ended December 31, 2011, Equity Residential reported net income of $935.2 million, or $2.95 per diluted share. Total revenues were approximately $1.99 billion.

Equity Residential actively manages its portfolio by investing in apartment communities in targeted markets. The strategy involves maximizing risk-adjusted total return through a balance of occupancy and rental rates, cost control, and capital appreciation. The company has been divesting non-core assets and acquiring properties in core markets with high barriers to entry and strong economic growth potential. They also engage in development projects in these key markets.

Equity Residential manages its debt through its Operating Partnership, ERPOP. The company has access to capital through various sources, including equity and debt markets. As of December 31, 2011, they had a $1.25 billion unsecured revolving credit facility and also raised capital through unsecured note offerings and equity issuances under their ATM program. They aim to maintain sufficient liquidity to meet debt maturities, capital expenditures, and distributions.