Summary
Equity Residential (EQR) filed this Form 8-K on September 14, 2010, primarily to reformat and reissue historical financial statements to comply with SEC requirements regarding discontinued operations. The company is updating its previously filed 2009 Annual Report on Form 10-K to reflect the classification of properties sold during the first six months of 2010 as discontinued operations across all presented periods. This reclassification, while necessary for SEC reporting compliance, does not alter the previously reported net income, net income available to common shares, funds from operations (FFO), or FFO available to common shares and units.
Key Highlights
- 1Reclassification of properties sold in H1 2010 as discontinued operations.
- 2Update impacts previously issued annual financial statements for the year ended December 31, 2009.
- 3No impact on previously reported net income, net income available to common shares, FFO, or FFO available to common shares and units.
- 4The filing serves to satisfy SEC requirements related to financial reporting of discontinued operations.
- 5Includes updated financial data for the six months ended June 30, 2010 and 2009 in Exhibit 12.
- 6The filing updates specific items (6, 7, 8, and Exhibit 12) of the 2009 10-K; other items remain unchanged.
Frequently Asked Questions
The primary purpose of this filing is to reformat and re-issue Equity Residential's historical financial statements to comply with SEC regulations concerning the reporting of discontinued operations. Specifically, properties sold during the first six months of 2010 are now being presented as discontinued operations in their financial reporting.
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 units. It's a change in presentation for SEC compliance, not a change in actual financial results.
The filing updates Items 6, 7, 8, and Exhibit 12 of the company's Annual Report on Form 10-K for the year ended December 31, 2009. This includes selected financial data, Management's Discussion and Analysis, Financial Statements and Supplementary Data, and the computation of the Ratio of Earnings to Combined Fixed Charges. XBRL formatted financial statements are also provided.
This filing is primarily a technical correction and reformatting exercise for SEC compliance. While Exhibit 12 includes updated interim information for the six months ended June 30, 2010 and 2009, the core operational or financial performance metrics are not being changed or newly disclosed. The focus is on the correct accounting presentation of past sales.