8-KOther EventsExhibits & Filings

EQUITY RESIDENTIAL 8-K Report, Corporate Update (Jan 4, 2010)

Filed January 4, 2010For Securities:EQR

Summary

Equity Residential (EQR) announced on January 4, 2010, the completion of a cash tender offer by its operating partnership, ERP Operating Limited Partnership, for all of its outstanding 3.85% Exchangeable Senior Notes due August 15, 2026. This action involved the repurchase of these notes, which will result in a non-cash charge impacting the company's financial reporting. For the fourth quarter of 2009, EQR expects to record a charge to earnings and funds from operations (FFO) of approximately $1.7 million. This charge stems from the write-off of unamortized costs and a discount associated with the repurchased Exchangeable Notes. Investors should note that while this charge affects reported earnings and FFO, it is a non-cash item and reflects the accounting treatment of the debt extinguishment rather than an operational cash outflow in the current period.

Key Highlights

  • 1ERP Operating Limited Partnership successfully completed a cash tender offer for all of its 3.85% Exchangeable Senior Notes due August 15, 2026.
  • 2The completion of the tender offer involves the repurchase of the outstanding Exchangeable Notes.
  • 3Equity Residential will record a charge to earnings and Funds From Operations (FFO) for the fourth quarter of 2009.
  • 4The estimated charge is approximately $1.7 million.
  • 5The charge is non-cash, resulting from the write-off of unamortized costs and a discount related to the repurchased notes.
  • 6This event is reported via Form 8-K, with a press release (Exhibit 99.1) providing further details.

Frequently Asked Questions

The main event was the completion of a cash tender offer by Equity Residential's operating partnership, ERP Operating Limited Partnership, to repurchase all of its outstanding 3.85% Exchangeable Senior Notes due August 15, 2026.

Equity Residential will record a non-cash charge of approximately $1.7 million to earnings and Funds From Operations (FFO) for the fourth quarter of 2009. This charge is due to the write-off of unamortized costs and a discount associated with the retired notes.

No, the filing indicates that the tender offer was for 'any and all' of the Exchangeable Notes, and its completion means these notes have been repurchased and are no longer outstanding.

No, the filing specifies that the charge is a 'non-cash write-off.' This means it affects reported earnings and FFO for accounting purposes but does not represent a cash payment made in the fourth quarter of 2009, beyond the cash used for the tender offer itself.