8-KOther Events

EQUITY RESIDENTIAL 8-K Report (May 18, 2004)

Filed May 18, 2004For Securities:EQR

Summary

Equity Residential (EQR) filed this Form 8-K on May 18, 2004, to re-issue historical financial statements in an updated format, specifically to comply with Statement of Financial Accounting Standards (SFAS) No. 144 regarding the impairment or disposal of long-lived assets. The company has reclassified properties sold during the first quarter of 2004 as discontinued operations for all periods presented in their previously filed annual financial statements (2003, 2002, and 2001 Form 10-K). This reclassification has no impact on the previously reported net income available to common shareholders or Funds From Operations (FFO). Investors should understand that this filing is primarily a technical accounting adjustment required by the SEC. It does not reflect any new operational performance or changes in the company's financial health beyond the accounting treatment of divested assets. The core financial performance metrics for the periods discussed remain unchanged, but the presentation is updated for regulatory compliance and improved comparability regarding asset disposals.

Key Highlights

  • 1Equity Residential is reformatting historical financial statements to comply with SFAS No. 144.
  • 2Properties sold in Q1 2004 are now classified as 'discontinued operations' for all periods presented in prior annual reports (2001-2003).
  • 3This reclassification affects the presentation of financial statements but does not change previously reported net income or FFO.
  • 4The filing updates specific sections (Items 6, 7, 8, and 15 Exhibit 12) of the company's 2003, 2002, and 2001 Form 10-K.
  • 5All other items within the previously filed 10-K reports remain unchanged.
  • 6This is a technical accounting compliance update, not an indicator of new operational performance.
  • 7The company's CFO, David J. Neithercut, and Chief Accounting Officer, Michael J. McHugh, signed the filing.

Frequently Asked Questions

This 8-K filing is primarily to comply with the SEC's requirements regarding SFAS No. 144, which governs the accounting for impairment or disposal of long-lived assets. Equity Residential is reclassifying properties sold in the first quarter of 2004 as discontinued operations in its historical financial statements.

No, the filing explicitly states that these reclassifications have no effect on the company's previously reported net income available to common shares or funds from operations (FFO). It's a change in presentation, not a change in the underlying financial results for those periods.

The filing updates Items 6, 7, 8, and Exhibit 12 of Item 15 from Equity Residential's annual reports on Form 10-K for the years ended December 31, 2003, 2002, and 2001.

No, investors should not be concerned. This is a standard accounting compliance update required by regulatory standards (SFAS No. 144) when assets are disposed of. It ensures consistency in financial reporting and does not indicate any new operational issues or changes in the company's overall financial health or performance metrics like FFO.