10-QPeriod: Q3 FY2002

EQUITY RESIDENTIAL Quarterly Report for Q3 Ended Sep 30, 2002

Filed November 13, 2002For Securities:EQR

Summary

Equity Residential (EQR) reported its financial results for the nine months and the third quarter ended September 30, 2002. For the nine months, total revenues were $1.52 billion, a decrease from $1.56 billion in the prior year period. Net income for the nine months was $302.8 million, down from $332.1 million in the prior year. For the third quarter, total revenues were $506.7 million, down from $526.0 million in the prior year quarter, and net income was $88.7 million, a decrease from $93.9 million in the prior year quarter. The company continued its strategy of property acquisition and disposition. During the first nine months of 2002, EQR acquired ten properties for $245.4 million and disposed of thirty-five properties, generating significant gains on sales of discontinued operations. The company's balance sheet shows total assets of $12.0 billion and total liabilities of $6.0 billion as of September 30, 2002. The company maintained a debt-to-market capitalization ratio of 40.22%, indicating a healthy leverage position.

Key Highlights

  • 1Total revenues for the nine months ended September 30, 2002, decreased by 2.1% to $1.52 billion compared to $1.56 billion in the prior year.
  • 2Net income for the nine months decreased by 8.8% to $302.8 million compared to $332.1 million in the prior year.
  • 3The company acquired ten properties for $245.4 million during the first nine months of 2002.
  • 4Equity Residential disposed of thirty-five properties during the first nine months of 2002, recognizing a net gain on sales of discontinued operations of $61.2 million.
  • 5As of September 30, 2002, the company's total assets were $12.0 billion, and total liabilities were $6.0 billion.
  • 6The debt-to-total market capitalization ratio was 40.22% as of September 30, 2002, indicating a manageable level of debt.
  • 7The company's financial results reflect ongoing strategies of property acquisition, development, and disposition, as well as operational adjustments in response to market conditions.

Frequently Asked Questions

For the nine months ended September 30, 2002, Equity Residential's total revenues decreased by 2.1% to $1.52 billion, and net income decreased by 8.8% to $302.8 million, compared to the same period in 2001.

During the first nine months of 2002, Equity Residential acquired ten properties for $245.4 million and disposed of thirty-five properties. The company recognized a net gain of $61.2 million on sales of discontinued operations from these dispositions.

As of September 30, 2002, Equity Residential reported total assets of $12.0 billion and total liabilities of $6.0 billion. The company's debt-to-total market capitalization ratio was 40.22%, indicating a conservative leverage position.

Key expense items include property and maintenance, real estate taxes and insurance, depreciation, and interest expense. The company also recorded significant impairment charges related to its corporate housing business and technology investments in 2002.