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Debt
 6 Months Ended
Jun. 30, 2022
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 six months ended June 30, 2022 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 table summarizes the Company’s mortgage notes payable activity for the six months ended June 30, 2022 (amounts in thousands):

 

 

 

Mortgage notes

payable, net as of

December 31, 2021

 

 

Proceeds

 

 

Lump sum

payoffs

 

 

Scheduled

principal

repayments

 

 

Amortization

of premiums/

discounts

 

 

Amortization

of deferred

financing

costs, net (1)

 

 

Mortgage notes

payable, net as of

June 30, 2022

 

Fixed Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured – Conventional

 

$

1,896,472

 

 

$

—

 

 

$

(260,874

)

 

$

(2,985

)

 

$

928

 

 

$

714

 

 

$

1,634,255

 

Floating Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured – Conventional

 

 

59,890

 

 

 

14,586

 

(2)

 

—

 

 

 

—

 

 

 

—

 

 

 

148

 

 

 

74,624

 

Secured – Tax Exempt

 

 

234,839

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

617

 

 

 

69

 

 

 

235,525

 

Floating Rate Debt

 

 

294,729

 

 

 

14,586

 

 

 

—

 

 

 

—

 

 

 

617

 

 

 

217

 

 

 

310,149

 

Total

 

$

2,191,201

 

 

$

14,586

 

 

$

(260,874

)

 

$

(2,985

)

 

$

1,545

 

 

$

931

 

 

$

1,944,404

 

 

(1)

Represents amortization of deferred financing costs, net of debt financing costs.  

(2)

See Note 6 for additional discussion of the variable rate construction mortgage debt.

 

The following table summarizes certain interest rate and maturity date information as of and for the six months ended June 30, 2022:

 

 

 

June 30, 2022

 

Interest Rate Ranges

 

0.10% - 4.21%

 

Weighted Average Interest Rate

 

3.37%

 

Maturity Date Ranges

 

2023-2061

 

 

As of June 30, 2022, the Company had $250.0 million of secured debt (primarily tax-exempt bonds) subject to third-party credit enhancement.

Notes

The following table summarizes the Company’s notes activity for the six months ended June 30, 2022 (amounts in thousands):

 

 

 

Notes, net as of

December 31, 2021

 

 

Proceeds

 

 

Lump sum

payoffs

 

 

Amortization

of premiums/

discounts

 

 

Amortization

of deferred

financing

costs, net (1)

 

 

Notes, net as of

June 30, 2022

 

Fixed Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured – Public

 

$

5,835,222

 

 

$

—

 

 

$

—

 

 

$

1,346

 

 

$

2,125

 

 

$

5,838,693

 

 

(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 six months ended June 30, 2022:

 

 

 

June 30, 2022

 

Interest Rate Ranges

 

1.85% - 7.57%

 

Weighted Average Interest Rate

 

3.60%

 

Maturity Date Ranges

 

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 the six months ended June 30, 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 Company did not borrow any amounts under its revolving credit facility during the six months ended June 30, 2022.

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 0.60% for the six months ended June 30, 2022 and a weighted average maturity of 12 days as of June 30, 2022.  The weighted average amount outstanding for the six months ended June 30, 2022 was approximately $186.7 million.

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 June 30, 2022 (amounts in thousands):

 

 

 

June 30, 2022

 

Unsecured revolving credit facility commitment

 

$

2,500,000

 

Commercial paper balance outstanding

 

 

(185,037

)

Unsecured revolving credit facility balance outstanding

 

 

—

 

Other restricted amounts

 

 

(3,463

)

Unsecured revolving credit facility availability

 

$

2,311,500

 

 

Other

The following table summarizes the Company’s total debt extinguishment costs recorded as additional interest expense for the six months and quarters ended June 30, 2022 and 2021 (amounts in thousands):

 

 

 

Six Months Ended June 30,

 

 

Quarter Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Write-offs of unamortized deferred financing costs

 

$

92

 

 

$

264

 

 

$

92

 

 

$

—

 

Write-offs of unamortized (premiums)/discounts/OCI

 

 

377

 

 

 

—

 

 

 

377

 

 

 

—

 

Total

 

$

469

 

 

$

264

 

 

$

469

 

 

$

—