8-KOther EventsExhibits & Filings

EQUITY RESIDENTIAL 8-K Report, Corporate Update (May 24, 2006)

Filed May 24, 2006For Securities:EQR

Summary

Equity Residential (EQR) has filed a Form 8-K on May 24, 2006, to update its previously issued financial statements. This update is primarily to comply with Statement of Financial Accounting Standards (SFAS) No. 144, which governs the accounting for impairment or disposal of long-lived assets. Specifically, the company is reclassifying the financial results of consolidated properties sold during the first three months of 2006 as discontinued operations. This reclassification extends to previously reported annual financial statements incorporated by reference, as well as the most recent quarterly report. Additionally, a portion of "Minority Interests — Operating Partnership" has been reallocated between continuing and discontinued operations to align with this presentation. Importantly, these reclassifications have no impact on Equity Residential's previously reported net income available to common shares or its Funds From Operations (FFO).

Key Highlights

  • 1EQR is reissuing historical financial statements to comply with SFAS No. 144.
  • 2Properties sold in Q1 2006 are now reported as discontinued operations.
  • 3The reclassification impacts previously issued annual financial statements and the Q1 2006 10-Q.
  • 4Minority Interests related to the Operating Partnership have been reallocated.
  • 5The reclassifications have no impact on net income available to common shares.
  • 6The reclassifications have no impact on Funds From Operations (FFO).
  • 7This 8-K updates specific items (6, 7, 8, and 15) of the Form 10-K for the year ended December 31, 2005.

Frequently Asked Questions

Equity Residential is filing this Form 8-K to update its historical financial statements to comply with SFAS No. 144, which requires specific accounting treatment for the impairment or disposal of long-lived assets. This involves reclassifying properties sold in early 2006 as discontinued operations.

No, the filing explicitly states that these reclassifications have no effect on Equity Residential's previously reported net income available to common shares or its Funds From Operations (FFO). This is a change in presentation, not a change in the underlying financial performance.

The reclassification impacts the financial results of properties sold in the first three months of 2006. It is applied to the company's first quarter 2006 quarterly report (Form 10-Q) and also to previously issued annual financial statements for the three years shown in the company's most recent Form 10-K, if those statements are incorporated by reference into subsequent filings.

Besides the reclassification of sold properties and minority interests to discontinued operations, all other items in the company's Form 10-K for the year ended December 31, 2005, remain unchanged. This filing is solely for the purpose of conforming the financial reporting to SFAS No. 144 requirements.