8-KOther EventsExhibits & Filings

EQUITY RESIDENTIAL 8-K Report, Corporate Update (Aug 22, 2005)

Filed August 22, 2005For Securities:EQR

Summary

Equity Residential (EQR) filed this Form 8-K on August 22, 2005, to report a reclassification of its historical financial statements. This update is primarily to comply with the Statement of Financial Accounting Standards (SFAS) No. 144, which governs accounting for the impairment or disposal of long-lived assets. Specifically, the company is reclassifying the results of operations for properties sold during the first six months of 2005 as discontinued operations in its previously issued annual financial statements for 2004, 2003, and 2002. This reclassification impacts how prior period results are presented but, importantly, does not alter the previously reported net income available to common shareholders or Funds from Operations (FFO). Investors should note that this filing is a procedural update to align with accounting standards and does not represent new operational or financial performance information beyond the reclassification of asset disposals.

Key Highlights

  • 1Equity Residential is re-issuing historical financial statements to comply with SFAS No. 144.
  • 2Properties sold in the first six months of 2005 are now reported as 'discontinued operations'.
  • 3This reclassification applies to previously issued annual financial statements (2004, 2003, 2002).
  • 4The reclassification affects the presentation of results of operations for sold properties.
  • 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 is a formal update to financial reporting, not an indication of new performance trends or changes.

Frequently Asked Questions

The primary reason for this filing is to reclassify historical financial statements in accordance with SFAS No. 144, which deals with accounting for the impairment or disposal of long-lived assets. Equity Residential is updating its filings to show properties sold in the first half of 2005 as discontinued operations.

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). This is purely a presentation change for compliance purposes.

The filing updates Items 6, 7, 8, and a specific part of Item 15 (Exhibit 12) of Equity Residential's annual reports on Form 10-K for the years ended December 31, 2004, 2003, and 2002. All other aspects of these prior 10-K filings remain unchanged.

Investors should not necessarily be concerned solely based on this reclassification. The properties were sold during the first six months of 2005, and this filing is an accounting adjustment to present them correctly as discontinued operations in past periods. The impact on overall financial performance (net income and FFO) is nullified by this adjustment.