Summary
Equity Residential (EQR) has filed a Form 8-K to re-issue updated historical financial statements, primarily to comply with Statement of Financial Accounting Standards (SFAS) No. 144 regarding the impairment or disposal of long-lived assets. This filing specifically addresses the reclassification of properties sold during the first quarter of 2008. These properties' results of operations have been moved to "discontinued operations" for all periods presented, including prior year comparisons in their first quarter 2008 Form 10-Q and their previously filed 2007 Form 10-K.
Key Highlights
- 1EQR is updating historical financial statements due to SFAS No. 144 requirements for asset impairment and disposal.
- 2Properties sold in Q1 2008 are now reported as a component of discontinued operations for all periods presented.
- 3This reclassification impacts prior periods, including the 2007 Form 10-K if incorporated by reference.
- 4The reclassification has no impact on previously reported net income, net income available to common shares, FFO, or FFO available to common shares and OP Units.
- 5This 8-K amends specific items (6, 7, 8, and Exhibit 12) of the 2007 Form 10-K.
- 6Exhibit 12 also includes interim information for the quarters ended March 31, 2008, and 2007.
Frequently Asked Questions
The primary reason is to comply with SFAS No. 144, which requires historical financial statements to be updated when long-lived assets are sold or impaired. In this case, Equity Residential is reclassifying the results of properties sold in the first quarter of 2008 as discontinued operations.
No, the filing explicitly states that this reclassification has no effect on the Company's previously reported net income, net income available to Common Shares, funds from operations (FFO), or FFO available to Common Shares and OP Units.
This Form 8-K updates Items 6, 7, 8, and Exhibit 12 of Equity Residential's annual report on Form 10-K for the year ended December 31, 2007. Exhibit 12 will also include interim financial data for the first quarters of 2008 and 2007.
No, this filing is purely an accounting and reporting adjustment to comply with accounting standards (SFAS No. 144) for properties already sold. It does not indicate any new operational changes or strategic shifts.