8-KMaterial AgreementsRegulation FDExhibits & Filings

EQUITY RESIDENTIAL 8-K Report, Material Agreement (Jan 7, 2013)

Filed January 7, 2013For Securities:EQR

Summary

Equity Residential (EQR) announced on January 7, 2013, that its subsidiary, ERP Operating Limited Partnership, has entered into a Material Definitive Agreement to sell a portfolio of 27 multifamily assets across the United States. The sale is valued at $1.5 billion in cash, with a potential adjustment down to $1.38 billion if the buyer exercises its right to exclude up to 8% of the asset value. This transaction, expected to close in the first quarter of 2013, represents a significant disposition of assets for EQR. Investors should monitor the closing of this transaction for potential impacts on the company's portfolio composition, balance sheet, and future capital allocation strategies. The sale is subject to customary closing conditions, and there is no guarantee of consummation.

Key Highlights

  • 1EQR, through its subsidiary ERP Operating Limited Partnership, is selling a portfolio of 27 multifamily assets for $1.5 billion in cash.
  • 2The sale agreement was executed on January 4, 2013, with an announcement made on January 7, 2013.
  • 3The transaction has a potential price reduction to $1.38 billion if the buyer excludes up to 8% of the asset value.
  • 4The sale is expected to close in the first quarter of 2013.
  • 5The transaction is subject to customary closing conditions.
  • 6The assets being sold are located across the United States.
  • 7This represents a significant portfolio disposition for Equity Residential.

Frequently Asked Questions

This 8-K filing announces Equity Residential's entry into a material definitive agreement to sell a substantial portfolio of 27 multifamily assets for $1.5 billion in cash.

The total purchase price is $1.5 billion in cash. However, the price can be reduced to a minimum of $1.38 billion if the purchaser exercises its right to exclude up to 8% of the asset value.

The transaction is expected to be consummated in two separate closings, both anticipated to occur during the first quarter of 2013.

Yes, the consummation of the transaction is subject to the satisfaction of certain customary closing conditions. There is no assurance that the transaction will ultimately be completed.