8-KOther Events

EQUITY RESIDENTIAL 8-K Report (Aug 20, 2004)

Filed August 20, 2004For Securities:EQR

Summary

Equity Residential (EQR) filed this Form 8-K on August 20, 2004, to re-issue updated historical financial statements in compliance with SFAS No. 144, which addresses accounting for the impairment or disposal of long-lived assets. The primary purpose of this filing is to correctly classify properties sold during the first six months of 2004 as discontinued operations in previously issued financial statements. This reclassification affects the presentation of prior periods within the company's annual reports and the recently filed second quarter 10-Q. Importantly, the company states that these reclassifications have no impact on previously reported net income available to common shareholders or funds from operations (FFO), a key metric for REIT investors. Investors should note that this filing is a technical accounting update and not indicative of a change in the company's operational performance or financial health.

Key Highlights

  • 1Equity Residential is re-issuing updated historical financial statements to comply with SFAS No. 144.
  • 2Properties sold in the first six months of 2004 are being reclassified as discontinued operations.
  • 3This reclassification applies to both the second quarter 2004 Form 10-Q and previously issued annual financial statements (2003, 2002, 2001).
  • 4The reclassification is a formal accounting requirement under SEC rules for previously issued statements incorporated by reference.
  • 5There is no impact on previously reported net income available to Common Shares.
  • 6There is no impact on previously reported Funds From Operations (FFO).
  • 7This filing primarily serves as an accounting update and does not reflect changes in operational performance.

Frequently Asked Questions

The main reason for this filing is Equity Residential's need to re-issue updated historical financial statements in accordance with Statement of Financial Accounting Standards (SFAS) No. 144. This standard requires properties sold during the first six months of 2004 to be presented as discontinued operations.

No, Equity Residential explicitly states that these reclassifications will have no effect on the company's previously reported net income available to Common Shares or its Funds From Operations (FFO).

No, this filing is a technical accounting update to comply with regulatory requirements (SFAS No. 144). It does not signal any changes in the company's operational performance, financial health, or future outlook. It's about how past transactions are presented, not about new performance results.

This 8-K updates specific items (Items 6, 7, 8, and Exhibit 12 of Item 15) within Equity Residential's annual reports on Form 10-K for the years ended December 31, 2003, 2002, and 2001. It also addresses the reclassification within the second quarter 2004 Form 10-Q.