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Debt | 6 Months Ended
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Jun. 30, 2019
Debt Disclosure [Abstract] |
Debt |
9. | Debt
EQR does not have any indebtedness as all debt is incurred by the Operating Partnership. EQR guarantees the Operating Partnership’s revolving credit facility up to the maximum amount and for the full term of the facility. Weighted average interes t rates noted below for the six months ended June 30, 2019 include the effect of any derivative instruments and amortization of premiums/discounts/OCI (other comprehensive income) on debt and derivatives. Mortgage Notes Payable As of June 30, 2019, the Company had outstanding mortgage debt of approximately $2.6 billion. During the six months ended June 30, 2019, the Company:
| • | Obtained $288.1 million in 3.94% fixed rate mortgage debt held in a Fannie Mae loan pool maturing on March 1, 2029;
| • | Obtained $7.5 million in variable rate construction mortgage debt maturing on June 25, 2022 (total commitment of $67.6 million);
| • | Repaid $95.5 million of tax-exempt variable rate mortgage bonds maturing in 2036; and
| • | Repaid $3.1 million of scheduled principal repayments on various mortgage debt.
The Company recorded $1.5 million of write-offs of unamortized deferred financing costs during the six months ended June 30, 2019 as additional interest expense related to debt extinguishment of mortgages. The Company also recorded $15.1 million of write-offs of net unamortized discounts during the six months ended June 30, 2019 as additional interest expense related to debt extinguishment of mortgages. As of June 30, 2019, the Company had $345.0 million of secured debt (primarily tax-exempt bonds) subject to third party credit enhancement. As of June 30, 2019, scheduled maturities for the Company’s outstanding mortgage indebtedness were at various dates through May 28, 2061. At June 30, 2019, the interest rate range on the Company’s mortgage debt was 0.10% to 5.78%. During the six months ended June 30, 2019, the weighted average interest rate on the Company’s mortgage debt was 4.01%. Notes As of June 30, 2019, the Company had outstanding unsecured notes of approximately $6.5 billion. During the six months ended June 30, 2019, the Company issued $600.0 million of ten-year 3.00% unsecured notes, receiving net proceeds of approximately $597.5 million before underwriting fees, hedge termination costs and other expenses, at an all-in effective interest rate of approximately 3.85%. As of June 30, 2019, scheduled maturities for the Company’s outstanding notes were at various dates through August 1, 2047. At June 30, 2019, the interest rate range on the Company’s notes before the effect of certain fair value hedges was 2.375% to 7.57%. During the six months ended June 30, 2019, the weighted average interest rate on the Company’s notes was 4.30%. The Company’s unsecured public debt contains certain financial and operating covenants including, among other things, maintenance of certain financial ratios. The Company was in compliance with its unsecured public debt covenants for the six months ended June 30, 2019. Line of Credit and Commercial Paper The Company has a $2.0 billion unsecured revolving credit facility maturing January 10, 2022. The Company has the ability to increase available borrowings by an additional $750.0 million by adding additional banks to the facility or obtaining the agreement of existing banks to increase their commitments. The interest rate on advances under the facility will generally be LIBOR plus a spread (currently 0.825%), or based on bids received from the lending group, and the Company pays an annual facility fee (currently 0.125%). Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating. The Company has an unsecured commercial paper note program in the United States. The Company may borrow up to a maximum of $500.0 million under this program subject to market conditions. The notes will be sold under customary terms in the United States commercial paper note market and will rank pari passu with all of the Company’s other unsecured senior indebtedness. As of June 30, 2019, there was no commercial paper outstanding. The notes bear interest at various floating rates with a weighted average of 2.73% for the six months ended June 30, 2019. The weighted average amount outstanding for the six months ended June 30, 2019 was approximately $348.8 million. As of June 30, 2019, there were no borrowings outstanding under the revolving credit facility and $6.7 million was restricted/dedicated to support letters of credit. In addition, the Company limits its utilization of the facility in order to maintain liquidity and to support its $500.0 million commercial paper program along with certain other obligations. As a result, the Company had approximately $1.90 billion available under the facility at June 30, 2019. During the six months ended June 30, 2019, the weighted average interest rate on the revolving credit facility was 3.25%. Other In 2017, the Company executed a letter of credit facility with a third party financial institution which is not backed or collateralized by borrowings on the Company’s unsecured revolving credit facility. As of June 30, 2019, there was $9.0 million in letters of credit outstanding on this facility.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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