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Debt | 12 Months Ended
--- | ---
Dec. 31, 2021
Debt Disclosure [Abstract] |
Debt |
9. | Debt
EQR does not have any indebtedness as all debt is incurred by the Operating Partnership. Weighted average interest rates noted below for the years ended December 31, 2021 and 2020 include the effect of any derivative instruments and amortization of premiums/discounts/OCI (other comprehensive income) on debt and derivatives. Mortgage Notes Payable The following tables summarize the Company’s mortgage notes payable activity for the years ended December 31, 2021 and 2020, respectively (amounts in thousands):
|  | Mortgage notes payable, net as of December 31, 2020 |  |  | Proceeds |  |  | Lump sum payoffs |  |  | Scheduled principal repayments |  |  | Amortization of premiums/ discounts |  |  | Amortization of deferred financing costs, net (1) |  |  | Mortgage notes payable, net as of December 31, 2021 |
Fixed Rate Debt: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Secured – Conventional |  | $ | 1,901,091 |  |  | $ | 28,500 |  | (2) | $ | (28,200 | ) |  | $ | (7,465 | ) |  | $ | 1,522 |  |  | $ | 1,024 |  |  | $ | 1,896,472 |
Floating Rate Debt: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Secured – Conventional |  |  | 31,494 |  |  |  | 29,928 |  | (3) |  | — |  |  |  | — |  |  |  | — |  |  |  | (1,532 | ) |  |  | 59,890 |
Secured – Tax Exempt |  |  | 361,305 |  |  |  | — |  |  |  | (128,615 | ) |  |  | — |  |  |  | 1,242 |  |  |  | 907 |  |  |  | 234,839 |
Floating Rate Debt |  |  | 392,799 |  |  |  | 29,928 |  |  |  | (128,615 | ) |  |  | — |  |  |  | 1,242 |  |  |  | (625 | ) |  |  | 294,729 |
Total |  | $ | 2,293,890 |  |  | $ | 58,428 |  |  | $ | (156,815 | ) |  | $ | (7,465 | ) |  | $ | 2,764 |  |  | $ | 399 |  |  | $ | 2,191,201 |
(1) | Represents amortization of deferred financing costs, net of debt financing costs.
(2) | Obtained 3.58% fixed rate mortgage debt maturing on March 1, 2031.
(3) | Variable rate construction mortgage debt that is non-recourse to the Company maturing on June 25, 2022 (total commitment of $67.6 million).
|  | Mortgage notes payable, net as of December 31, 2019 |  |  | Proceeds |  |  | Lump sum payoffs |  |  | Scheduled principal repayments |  |  | Amortization of premiums/ discounts |  |  | Amortization of deferred financing costs, net (1) |  |  | Mortgage notes payable, net as of December 31, 2020 |
Fixed Rate Debt: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Secured – Conventional |  | $ | 1,574,699 |  |  | $ | 495,000 |  | (2) | $ | (160,522 | ) |  | $ | (7,759 | ) |  | $ | 988 |  |  | $ | (1,315 | ) |  | $ | 1,901,091 |
Floating Rate Debt: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Secured – Conventional |  |  | 7,050 |  |  |  | 24,204 |  | (3) |  | — |  |  |  | — |  |  |  | — |  |  |  | 240 |  |  |  | 31,494 |
Secured – Tax Exempt |  |  | 359,861 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,246 |  |  |  | 198 |  |  |  | 361,305 |
Floating Rate Debt |  |  | 366,911 |  |  |  | 24,204 |  |  |  | — |  |  |  | — |  |  |  | 1,246 |  |  |  | 438 |  |  |  | 392,799 |
Total |  | $ | 1,941,610 |  |  | $ | 519,204 |  |  | $ | (160,522 | ) |  | $ | (7,759 | ) |  | $ | 2,234 |  |  | $ | (877 | ) |  | $ | 2,293,890 |
(1) | Represents amortization of deferred financing costs, net of debt financing costs.
(2) | Obtained a 2.60% fixed rate mortgage loan pool maturing on May 1, 2030.
(3) | Variable rate construction mortgage debt that is non-recourse to the Company maturing on June 25, 2022 (total commitment of $67.6 million).
The following table summarizes certain interest rate and maturity date information as of and for the years ended December 31, 2021 and 2020, respectively:
|  | December 31, 2021 |  |  | December 31, 2020 |
Interest Rate Ranges |  | 0.06% - 4.21% |  |  | 0.06% - 4.71% |
Weighted Average Interest Rate |  | 3.18% |  |  | 3.33% |
Maturity Date Ranges |  | 2022-2061 |  |  | 2021-2061 |
As of December 31, 2021 and 2020, the Company had $250.0 million and $281.7 million, respectively, of secured debt (primarily tax-exempt bonds) subject to third-party credit enhancement. The historical cost, net of accumulated depreciation, of encumbered properties was $2.7 billion and $2.9 billion at December 31, 2021 and 2020, respectively. Notes The following tables summarize the Company’s notes activity for the years ended December 31, 2021 and 2020, respectively (amounts in thousands):
|  | Notes, net as of December 31, 2020 |  |  | Proceeds |  |  | Lump sum payoffs |  |  | Amortization of premiums/ discounts |  |  | Amortization of deferred financing costs, net (1) |  |  | Notes, net as of December 31, 2021 |
Fixed Rate Debt: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unsecured – Public |  | $ | 5,335,536 |  |  | $ | 497,470 |  | (2) | $ | — |  |  | $ | 2,538 |  |  | $ | (322 | ) |  | $ | 5,835,222 |
(1) | Represents amortization of deferred financing costs, net of debt financing costs.
(2) | Issued $500.0 million of ten-year 1.85% unsecured notes, receiving net proceeds before underwriting fees and other expenses.
|  | Notes, net as of December 31, 2019 |  |  | Proceeds |  |  | Lump sum payoffs |  |  | Amortization of premiums/ discounts |  |  | Amortization of deferred financing costs, net (1) |  |  | Notes, net as of December 31, 2020 |
Fixed Rate Debt: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unsecured – Public |  | $ | 6,077,513 |  |  | $ | — |  |  | $ | (750,000 | ) |  | $ | 2,997 |  |  | $ | 5,026 |  |  | $ | 5,335,536 |
(1) | Represents amortization of deferred financing costs, net of debt financing costs.
The following table summarizes certain interest rate and maturity date information as of and for the years ended December 31, 2021 and 2020, respectively:
|  | December 31, 2021 |  |  | December 31, 2020 |
Interest Rate Ranges |  | 1.85% - 7.57% |  |  | 2.50% - 7.57% |
Weighted Average Interest Rate |  | 3.65% |  |  | 4.03% |
Maturity Date Ranges |  | 2023-2047 |  |  | 2023-2047 |
The Company’s unsecured public notes contain 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 both the years ended December 31, 2021 and 2020. EQR and ERPOP currently have an active universal shelf registration statement for the issuance of equity and debt securities that automatically became effective upon filing with the SEC in June 2019 and expires in June 2022. Line of Credit and Commercial Paper The Company has a $2.5 billion unsecured revolving credit facility maturing November 1, 2024. The Company has the ability to increase available borrowings by an additional $750.0 million by adding lenders to the facility, obtaining the agreement of existing lenders to increase their commitments or incurring one or more term loans. The interest rate on advances under the facility will generally be LIBOR plus a spread (currently 0.775%), 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 weighted average interest rates on the revolving credit facility were 0.88% and 1.47% for the years ended December 31, 2021 and 2020, respectively. The Company has an unsecured commercial paper note program under which it may borrow up to a maximum of $1.0 billion 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. The notes bear interest at various floating rates with a weighted average interest rate of 0.27% and 1.72% for the years ended December 31, 2021 and 2020, respectively, and a weighted average maturity of 27 days and 45 days as of December 31, 2021 and 2020, respectively. The weighted average amount outstanding for the years ended December 31, 2021 and 2020 was approximately $471.0 million and $276.6 million, respectively. The Company limits its utilization of the revolving credit facility in order to maintain liquidity to support its $1.0 billion commercial paper program along with certain other obligations. The following table presents the availability on the Company’s unsecured revolving credit facility as of December 31, 2021 and 2020 (amounts in thousands):
|  | December 31, 2021 |  |  | December 31, 2020 |
Unsecured revolving credit facility commitment |  | $ | 2,500,000 |  |  | $ | 2,500,000 |
Commercial paper balance outstanding |  |  | (315,121 | ) |  |  | (415,000 | )
Unsecured revolving credit facility balance outstanding |  |  | — |  |  |  | — |
Other restricted amounts |  |  | (3,507 | ) |  |  | (100,949 | )
Unsecured revolving credit facility availability |  | $ | 2,181,372 |  |  | $ | 1,984,051 |
Other The following table summarizes the Company’s total debt extinguishment costs recorded as additional interest expense during the years ended December 31, 2021, 2020 and 2019, respectively (amounts in thousands):
|  | December 31, 2021 |  |  | December 31, 2020 |  |  | December 31, 2019 |
Prepayment premiums/penalties |  | $ | — |  |  | $ | 26,150 |  |  | $ | 13,647 |
Write-offs of unamortized deferred financing costs |  |  | 744 |  |  |  | 634 |  |  |  | 3,148 |
Write-offs of unamortized (premiums)/discounts/OCI |  |  | — |  |  |  | 12,508 |  |  |  | 7,196 |
Total |  | $ | 744 |  |  | $ | 39,292 |  |  | $ | 23,991 |
The following table provides a summary of the aggregate payments of principal on all debt for each of the next five years and thereafter as of December 31, 2021 (amounts in thousands):
Year |  | Total |
2022 (1) |  | $ | 641,089 |
2023 |  |  | 1,329,088 |
2024 |  |  | 6,100 |
2025 |  |  | 458,200 |
2026 |  |  | 601,025 |
Thereafter |  |  | 5,385,670 |
Subtotal |  |  | 8,421,172 |
Deferred Financing Costs and Unamortized (Discount) |  |  | (79,719 | )
Total |  | $ | 8,341,453 |
(1) | Includes $315.1 million in principal outstanding on the Company’s commercial paper program.

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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 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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