10-QPeriod: Q2 FY2004

EQUITY RESIDENTIAL Quarterly Report for Q2 Ended Jun 30, 2004

Filed August 6, 2004For Securities:EQR

Summary

Equity Residential (EQR) reported its financial results for the quarter ended June 30, 2004. The company continues to execute its strategy of acquiring and disposing of multifamily properties, demonstrating active portfolio management. Total assets grew to $12.55 billion from $11.47 billion at the end of 2003, reflecting significant investment in real estate, particularly through acquisitions and development. Financially, EQR reported total revenues of $488.6 million for the quarter, an increase from $440.1 million in the prior year's quarter. Net income available to common shareholders for the quarter was $108.6 million, translating to $0.39 per diluted share. Despite increased expenses, including property and maintenance, real estate taxes, and depreciation, the company managed to achieve growth in rental income. The company also demonstrated a strong commitment to returning capital to shareholders, declaring $0.4325 per common share in distributions during the quarter.

Key Highlights

  • 1Total assets increased to $12.55 billion as of June 30, 2004, up from $11.47 billion at year-end 2003, driven by significant real estate investments.
  • 2Quarterly rental income grew to $485.1 million, a notable increase from $434.7 million in the same quarter of the prior year, indicating strong leasing performance.
  • 3Net income available to common shareholders for the quarter was $108.6 million, or $0.39 per diluted share.
  • 4The company actively managed its property portfolio, acquiring $448 million in new properties and disposing of $522.5 million in properties during the first six months of the year.
  • 5Total liabilities increased to $6.93 billion from $5.85 billion, reflecting increased debt financing for property acquisitions and development.
  • 6The company declared a common share distribution of $0.4325 for the quarter, demonstrating a commitment to shareholder returns.
  • 7Funds From Operations (FFO) for the quarter remained strong at $169.6 million, slightly up from $169.0 million in the prior year's quarter, with FFO available to common shareholders and OP units holding steady.

Frequently Asked Questions

For the quarter ended June 30, 2004, EQR reported net income of $127.3 million. Net income available to common shareholders was $108.6 million, resulting in $0.39 per diluted share.

EQR's total revenues for the quarter ended June 30, 2004, were $488.6 million, an increase from $440.1 million reported for the same quarter in 2003. This growth was primarily driven by an increase in rental income.

EQR is actively engaged in acquiring and disposing of multifamily properties to manage its portfolio. During the first six months of 2004, the company acquired approximately $448 million in new properties and disposed of properties totaling $522.5 million. This strategy aims to optimize the portfolio's performance and market positioning.

Total liabilities increased to $6.93 billion from $5.85 billion, reflecting a rise in mortgage notes payable and other borrowings. The company has a debt-to-market capitalization ratio of 39% as of June 30, 2004, which is below its policy target of 50%. EQR utilizes a mix of secured and unsecured debt, with a substantial portion at fixed rates.