EX-99.1 2 eqr-ex99_1.htm EX-99.1

Second Quarter 2023 Results

Earnings Release |  | 1 - 5
Consolidated Statements of Operations |  | 6
Consolidated Statements of Funds From Operations and Normalized Funds From Operations |  | 7
Consolidated Balance Sheets |  | 8
Portfolio Summary |  | 9
Portfolio Rollforward |  | 10
Same Store Results |  | 11 - 18
Debt Summary |  | 19 - 21
Capital Structure |  | 22
Common Share and Unit Weighted Average Amounts Outstanding |  | 23
Development and Lease-Up Projects |  | 24
Capital Expenditures to Real Estate |  | 25
Normalized EBITDAre Reconciliations |  | 26
Adjustments from FFO to Normalized FFO |  | 27
Normalized FFO Guidance and Assumptions |  | 28
Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms |  | 29 - 34

Corporate Headquarters:
Two North Riverside Plaza
Chicago, IL 60606
(312) 474-1300
Information included in this supplemental package is unaudited.

Table of Contents

NEWS RELEASE - FOR IMMEDIATE RELEASE

July 27, 2023

Equity Residential Reports Second Quarter 2023 Results

Guidance Updated as Coastal Markets Experience Continued Strong Demand and Limited New Supply

Chicago, IL – July 27, 2023 - Equity Residential (NYSE: EQR) today reported results for the quarter and six months ended June 30, 2023.

Second Quarter 2023 Results

All per share results are reported as available to common shares/units on a diluted basis.

|  |  | Quarter Ended June 30, |  |
|  |  | 2023 |  |  | 2022 |  |  | $ Change |  |  | % Change |  |
| Earnings Per Share (EPS) |  | $ | 0.37 |  |  | $ | 0.59 |  |  | $ | (0.22 | ) |  |  | (37.3 | %) |
| Funds from Operations (FFO) per share |  | $ | 0.93 |  |  | $ | 0.89 |  |  | $ | 0.04 |  |  |  | 4.5 | % |
| Normalized FFO (NFFO) per share |  | $ | 0.94 |  |  | $ | 0.89 |  |  | $ | 0.05 |  |  |  | 5.6 | % |

|  |  | Six Months Ended June 30, |  |
|  |  | 2023 |  |  | 2022 |  |  | $ Change |  |  | % Change |  |
| Earnings Per Share (EPS) |  | $ | 0.92 |  |  | $ | 0.78 |  |  | $ | 0.14 |  |  |  | 17.9 | % |
| Funds from Operations (FFO) per share |  | $ | 1.78 |  |  | $ | 1.66 |  |  | $ | 0.12 |  |  |  | 7.2 | % |
| Normalized FFO (NFFO) per share |  | $ | 1.82 |  |  | $ | 1.66 |  |  | $ | 0.16 |  |  |  | 9.6 | % |

“Same store revenue performance remains strong and in line with our May 2023 guidance increase. The supply picture in the coastal markets where we predominantly operate remains favorable, demand is steady and we see continued progress in mitigating delinquency in Southern California,” said Mark J. Parrell, Equity Residential’s President and CEO. “We also are pleased to again update our guidance as a result of pending favorable refinancing activity as well as second half same store expenses that we anticipate will be lower than previously expected.”

Recent Highlights

•
Same store revenue increased 5.5% for the second quarter of 2023 compared to the second quarter of 2022. The Company increased its 2023 annual same store revenue growth guidance midpoint to 5.875% in May 2023.
•
Same store expense growth for the second quarter of 2023 compared to the second quarter of 2022 was 5.5%. The Company expects lower same store expense growth in the second half of the year and has lowered its full year same store expense guidance midpoint down 25 basis points to 4.25% from 4.5%.
•
The Company lowered its EPS guidance and increased its FFO and Normalized FFO per share guidance as described on page 2.
•
In July 2023, the Company locked the interest rate on secured loans totaling $530.0 million, which, subject to customary conditions, are anticipated to close in September 2023. After the effect of the Company’s hedges, the economic rate on these ten-year loans will be approximately 4.7%. The proceeds from these loans will be used, along with funding from the Company’s Commercial Paper Program, to paydown the $800.0 million secured debt pool that matures in November 2023 and carries an interest rate of 4.21%. After this paydown, the Company will have no significant debt maturities, other than commercial paper, until June 2025.
•
During the second quarter of 2023, the Company began the lease up of its new 312-unit development in Washington, D.C. The property is expected to stabilize in the third quarter of 2024 at a Development Yield of 5.7%.

1

Table of Contents

Full Year 2023 Guidance

The Company has revised its guidance for its full year 2023 same store operating performance, EPS, FFO per share and Normalized FFO per share as listed below:

|  | Revised |  | Previous (1) |  | Change at Midpoint
Same Store (includes Residential and Non-Residential): |  |  |  |
Physical Occupancy |  | 96.0% |  | 96.0% |  | 0.0%
Revenue change |  | 5.5% to 6.25% |  | 5.5% to 6.25% |  | 0.0%
Expense change |  | 4.0% to 4.5% |  | 4.0% to 5.0% |  | (0.25%)
Net Operating Income (NOI) change |  | 6.3% to 7.0% |  | 6.0% to 7.0% |  | 0.15%
EPS |  | $1.95 to $2.01 |  | $2.02 to $2.12 |  | $(0.09)
FFO per share |  | $3.72 to $3.78 |  | $3.69 to $3.79 |  | $0.01
Normalized FFO per share |  | $3.77 to $3.83 |  | $3.73 to $3.83 |  | $0.02

(1)
Represents the updated guidance provided in the Company's May 30, 2023 press release.

The change in the full year 2023 EPS guidance range is due primarily to higher expected depreciation expense, lower expected property sale gains and the items described below.

The change in the full year 2023 FFO per share guidance range is due primarily to higher expected other expenses and the items described below.

The change in the full year 2023 Normalized FFO per share guidance range is due primarily to:

|  | Positive/(Negative) Impact |
|  | Revised Full Year 2023 vs. Previous Full Year 2023 |
Residential same store NOI |  | $ | 0.01 |
Interest expense, net |  |  | 0.02 |
Other items |  |  | (0.01 | )
Net |  | $ | 0.02 |

The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 29 through 34 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 7, 31 and 32 of this release.

Results Per Share

The changes in EPS for the quarter and six months ended June 30, 2023 compared to the same periods of 2022 are due primarily to lower property sale gains and lower depreciation expense in the current period, the various adjustment items listed on page 27 of this release and the items described below.

The per share changes in FFO for the quarter and six months ended June 30, 2023 compared to the same periods of 2022 are due primarily to the various adjustment items listed on page 27 of this release and the items described below.

2

Table of Contents

The per share changes in Normalized FFO are due primarily to:

|  | Positive/(Negative) Impact |
|  | Second Quarter 2023 vs. Second Quarter 2022 |  |  | June YTD 2023 vs. June YTD 2022 |
Residential same store NOI |  | $ | 0.06 |  |  | $ | 0.17 |
Lease-Up NOI |  |  | 0.01 |  |  |  | 0.02 |
2023 and 2022 transaction activity impact on NOI, net |  | (0.01 | ) |  |  | (0.02 | )
Interest expense, net |  |  | 0.01 |  |  |  | 0.03 |
Corporate overhead (1) |  |  | (0.02 | ) |  |  | (0.01 | )
Other items (2) |  | – |  |  |  | (0.03 | )
Net |  | $ | 0.05 |  |  | $ | 0.16 |

(1)
Corporate overhead includes property management and general and administrative expenses.
(2)
Primarily represents the negative impact from property damage associated with the California rain storms that occurred earlier this year.

Same Store Results

The following table shows the total same store results for the periods presented.

|  | Second Quarter 2023 vs. Second Quarter 2022 |  | Second Quarter 2023 vs. First Quarter 2023 |  | June YTD 2023 vs. June YTD 2022
Apartment Units |  | 77,545 |  | 78,531 |  | 76,952
Physical Occupancy |  | 95.9% vs. 96.7% |  | 95.9% vs. 95.9% |  | 95.9% vs. 96.6%
Revenues |  | 5.5% |  | 1.7% |  | 7.3%
Expenses |  | 5.5% |  | (4.3%) |  | 6.4%
NOI |  | 5.4% |  | 4.7% |  | 7.7%

On page 11 of this release, the Company has provided a breakout of Residential and Non-Residential same store results with definitions that can be found on page 33 of this release. Non-Residential operations account for approximately 3.8% of total revenues for the six months ended June 30, 2023.

The following table reflects the detail of the change in Same Store Residential Revenues, which is presented on a GAAP basis showing Leasing Concessions on a straight-line basis.

|  | Second Quarter 2023 vs. Second Quarter 2022 |  |  | Second Quarter 2023 vs. First Quarter 2023 |  |  | June YTD 2023 vs. June YTD 2022 |
|  | % Change |  |  | % Change |  |  | % Change |
Same Store Residential Revenues- comparable period |  |  |  |  |  |  |  |
Lease rates |  |  | 7.3 | % |  |  | 1.1 | % |  |  | 8.2 | %
Leasing Concessions |  |  | (0.1 | %) |  |  | (0.1 | %) |  |  | 0.1 | %
Vacancy gain (loss) |  |  | (0.9 | %) |  |  | (0.1 | %) |  |  | (0.8 | %)
Bad Debt, Net (1) |  |  | (1.6 | %) |  |  | 0.3 | % |  |  | (0.9 | %)
Other (2) |  |  | 0.8 | % |  |  | 0.6 | % |  |  | 0.7 | %
Same Store Residential Revenues- current period |  | 5.5 | % |  |  | 1.8 | % |  |  | 7.3 | %

(1)
Change in rental income due to bad debt write-offs and reserves, net of amounts (including governmental rental assistance payments) collected on previously written-off or reserved accounts. Comparable period changes in quarterly Bad Debt, Net will be volatile throughout 2023 primarily due to the timing of governmental rental assistance received in 2022. See page 13 for more detail.
(2)
Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items.

See page 12 for detail and reconciliations of Same Store Residential Revenues on a GAAP basis to Same Store Residential Revenues with Leasing Concessions on a cash basis.

3

Table of Contents

Residential Same Store Operating Statistics

The following table includes select operating metrics for Residential Same Store Properties (for 76,952 same store apartment units):

|  | July 2023 (1) |  | Q2 2023 |  | Q1 2023
Physical Occupancy |  | 95.8% |  | 95.9% |  | 95.9%
Percentage of Residents Renewing by quarter/month | 54.0% |  | 57.0% |  | 59.0%
New Lease Change |  | 2.2% |  | 2.3% |  | 1.3%
Renewal Rate Achieved |  | 5.9% |  | 5.9% |  | 6.1%
Blended Rate |  | 4.2% |  | 4.3% |  | 3.9%

(1)
July 2023 results are preliminary.

Investment Activity

The Company acquired two operating properties during the second quarter of 2023 - a recently completed 262-unit apartment property in Atlanta, which is currently in lease up, for approximately $78.6 million at a stabilized Acquisition Cap Rate of 6.6% (5.7% when removing certain real estate tax benefits that will reduce over time) and a 287-unit property in suburban Denver built in 2022, for approximately $108.0 million at an Acquisition Cap Rate of 5.0%. The Company did not acquire any properties during the first quarter of 2023.

The Company did not sell any properties during the second quarter of 2023. During the first quarter of 2023, the Company sold a small portfolio of seven properties in Los Angeles with an average age of 25 years, consisting of 247 apartment units, for an aggregate sale price of approximately $135.3 million at a weighted average Disposition Yield of 5.3%, generating an Unlevered IRR of 8.7%.

Capital Markets Activity

In July 2023, the Company locked the interest rate on secured loans totaling $530.0 million, which, subject to customary conditions, are anticipated to close in September 2023. After the effect of the Company’s hedges, the economic rate on these ten-year loans will be approximately 4.7%. The proceeds from these loans will be used, along with funding from the Company’s Commercial Paper Program, to paydown the $800.0 million secured debt pool that matures in November 2023 and carries an interest rate of 4.21%. After this paydown, the Company will have no significant debt maturities, other than commercial paper supported by its revolving credit facility due in 2027, until June 2025.

Third Quarter 2023 Guidance

The Company has established guidance ranges for the third quarter of 2023 EPS, FFO per share and Normalized FFO per share as listed below:

|  | Q3 2023 Guidance
EPS |  | $0.59 to $0.63
FFO per share |  | $0.94 to $0.98
Normalized FFO per share |  | $0.95 to $0.99

The difference between the second quarter of 2023 actual EPS of $0.37 and the third quarter of 2023 EPS guidance midpoint of $0.61 is due primarily to higher expected property sale gains and the items described below.

The difference between the second quarter of 2023 actual FFO of $0.93 per share and the third quarter of 2023 FFO guidance midpoint of $0.96 per share is due primarily to the items described below.

The difference between the second quarter of 2023 actual Normalized FFO of $0.94 per share and the third quarter of 2023 Normalized FFO guidance midpoint of $0.97 per share is due primarily to:

|  | Positive/(Negative) Impact |
|  | Third Quarter 2023 vs. Second Quarter 2023 |
Residential same store NOI |  | $ | 0.01 |
Corporate overhead |  |  | 0.02 |
Net |  | $ | 0.03 |

4

Table of Contents

About Equity Residential

Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. Equity Residential owns or has investments in 304 properties consisting of 80,212 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin. For more information on Equity Residential, please visit our website at www.equityapartments.com.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential’s management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, government regulations and competition. These and other risks and uncertainties are described under the heading “Risk Factors” in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityapartments.com. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

A live web cast of the Company’s conference call discussing these results will take place tomorrow, Friday, July 28, 2023 at 10:00 a.m. CT. Please visit the Investor section of the Company’s website at www.equityapartments.com for the webcast link.

5

Table of Contents

Equity Residential

Consolidated Statem ents of Operations

(Amounts in thousands except per share data)

(Unaudited)

|  | Six Months Ended June 30, |  |  | Quarter Ended June 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
REVENUES |  |  |  |  |  |  |  |  |  |  |  |
Rental income |  | $ | 1,422,397 |  |  | $ | 1,340,378 |  |  | $ | 717,309 |  |  | $ | 687,030 |
EXPENSES |  |  |  |  |  |  |  |  |  |  |  |
Property and maintenance |  |  | 262,350 |  |  |  | 241,229 |  |  |  | 124,771 |  |  |  | 116,355 |
Real estate taxes and insurance |  |  | 209,749 |  |  |  | 202,538 |  |  |  | 103,080 |  |  |  | 101,850 |
Property management |  |  | 62,145 |  |  |  | 57,306 |  |  |  | 30,679 |  |  |  | 26,559 |
General and administrative |  |  | 35,041 |  |  |  | 33,661 |  |  |  | 18,876 |  |  |  | 16,423 |
Depreciation |  |  | 437,185 |  |  |  | 453,767 |  |  |  | 221,355 |  |  |  | 223,806 |
Total expenses |  |  | 1,006,470 |  |  |  | 988,501 |  |  |  | 498,761 |  |  |  | 484,993 |
Net gain (loss) on sales of real estate properties |  |  | 100,122 |  |  |  | 107,795 |  |  |  | (87 | ) |  |  | 107,897 |
Operating income |  |  | 516,049 |  |  |  | 459,672 |  |  |  | 218,461 |  |  |  | 309,934 |
Interest and other income |  |  | 3,669 |  |  |  | 4,124 |  |  |  | 2,131 |  |  |  | 596 |
Other expenses |  |  | (15,559 | ) |  |  | (5,436 | ) |  |  | (6,564 | ) |  |  | (2,380 | )
Interest: |  |  |  |  |  |  |  |  |  |  |  |
Expense incurred, net |  |  | (131,991 | ) |  |  | (144,681 | ) |  |  | (65,590 | ) |  |  | (71,889 | )
Amortization of deferred financing costs |  |  | (3,996 | ) |  |  | (4,201 | ) |  |  | (2,017 | ) |  |  | (2,124 | )
Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of land parcels |  |  | 368,172 |  |  |  | 309,478 |  |  |  | 146,421 |  |  |  | 234,137 |
Income and other tax (expense) benefit |  |  | (634 | ) |  |  | (573 | ) |  |  | (336 | ) |  |  | (291 | )
Income (loss) from investments in unconsolidated entities |  |  | (2,605 | ) |  |  | (2,429 | ) |  |  | (1,223 | ) |  |  | (1,168 | )
Net income |  |  | 364,933 |  |  |  | 306,476 |  |  |  | 144,862 |  |  |  | 232,678 |
Net (income) loss attributable to Noncontrolling Interests: |  |  |  |  |  |  |  |  |  |  |  |
Operating Partnership |  |  | (11,613 | ) |  |  | (10,027 | ) |  |  | (4,554 | ) |  |  | (7,633 | )
Partially Owned Properties |  |  | (2,082 | ) |  |  | (1,583 | ) |  |  | (1,105 | ) |  |  | (944 | )
Net income attributable to controlling interests |  |  | 351,238 |  |  |  | 294,866 |  |  |  | 139,203 |  |  |  | 224,101 |
Preferred distributions |  |  | (1,545 | ) |  |  | (1,545 | ) |  |  | (773 | ) |  |  | (773 | )
Net income available to Common Shares |  | $ | 349,693 |  |  | $ | 293,321 |  |  | $ | 138,430 |  |  | $ | 223,328 |
Earnings per share – basic: |  |  |  |  |  |  |  |  |  |  |  |
Net income available to Common Shares |  | $ | 0.92 |  |  | $ | 0.78 |  |  | $ | 0.37 |  |  | $ | 0.59 |
Weighted average Common Shares outstanding |  |  | 378,492 |  |  |  | 375,640 |  |  |  | 378,642 |  |  |  | 375,769 |
Earnings per share – diluted: |  |  |  |  |  |  |  |  |  |  |  |
Net income available to Common Shares |  | $ | 0.92 |  |  | $ | 0.78 |  |  | $ | 0.37 |  |  | $ | 0.59 |
Weighted average Common Shares outstanding |  |  | 391,063 |  |  |  | 389,463 |  |  |  | 391,187 |  |  |  | 389,363 |
Distributions declared per Common Share outstanding |  | $ | 1.325 |  |  | $ | 1.25 |  |  | $ | 0.6625 |  |  | $ | 0.625 |

6

Table of Contents

Equity Residential

Consolidated Statements of Funds From Opera tions and Normalized Funds From Operations

(Amounts in thousands except per share and Unit data)

(Unaudited)

|  | Six Months Ended June 30, |  |  | Quarter Ended June 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Net income |  | $ | 364,933 |  |  | $ | 306,476 |  |  | $ | 144,862 |  |  | $ | 232,678 |
Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties |  | (2,082 | ) |  |  | (1,583 | ) |  |  | (1,105 | ) |  |  | (944 | )
Preferred distributions |  |  | (1,545 | ) |  |  | (1,545 | ) |  |  | (773 | ) |  |  | (773 | )
Net income available to Common Shares and Units |  |  | 361,306 |  |  |  | 303,348 |  |  |  | 142,984 |  |  |  | 230,961 |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |
Depreciation |  |  | 437,185 |  |  |  | 453,767 |  |  |  | 221,355 |  |  |  | 223,806 |
Depreciation – Non-real estate additions |  |  | (2,259 | ) |  |  | (2,114 | ) |  |  | (1,103 | ) |  |  | (1,062 | )
Depreciation – Partially Owned Properties |  |  | (1,055 | ) |  |  | (1,554 | ) |  |  | (510 | ) |  |  | (661 | )
Depreciation – Unconsolidated Properties |  |  | 1,226 |  |  |  | 1,240 |  |  |  | 594 |  |  |  | 620 |
Net (gain) loss on sales of unconsolidated entities - operating assets |  |  | — |  |  |  | (9 | ) |  |  | — |  |  |  | — |
Net (gain) loss on sales of real estate properties |  |  | (100,122 | ) |  |  | (107,795 | ) |  |  | 87 |  |  |  | (107,897 | )
FFO available to Common Shares and Units |  |  | 696,281 |  |  |  | 646,883 |  |  |  | 363,407 |  |  |  | 345,767 |
Adjustments (see note for additional detail): |  |  |  |  |  |  |  |  |  |  |  |
Write-off of pursuit costs |  |  | 1,993 |  |  |  | 2,515 |  |  |  | 661 |  |  |  | 1,052 |
Debt extinguishment and preferred share redemption (gains) losses |  |  | 47 |  |  |  | 469 |  |  |  | 47 |  |  |  | 469 |
Non-operating asset (gains) losses |  |  | 1,031 |  |  |  | (1,330 | ) |  |  | 317 |  |  |  | 312 |
Other miscellaneous items |  |  | 11,343 |  |  |  | (185 | ) |  |  | 5,051 |  |  |  | 186 |
Normalized FFO available to Common Shares and Units |  | $ | 710,695 |  |  | $ | 648,352 |  |  | $ | 369,483 |  |  | $ | 347,786 |
FFO |  | $ | 697,826 |  |  | $ | 648,428 |  |  | $ | 364,180 |  |  | $ | 346,540 |
Preferred distributions |  |  | (1,545 | ) |  |  | (1,545 | ) |  |  | (773 | ) |  |  | (773 | )
FFO available to Common Shares and Units |  | $ | 696,281 |  |  | $ | 646,883 |  |  | $ | 363,407 |  |  | $ | 345,767 |
FFO per share and Unit – basic |  | $ | 1.79 |  |  | $ | 1.67 |  |  | $ | 0.93 |  |  | $ | 0.89 |
FFO per share and Unit – diluted |  | $ | 1.78 |  |  | $ | 1.66 |  |  | $ | 0.93 |  |  | $ | 0.89 |
Normalized FFO |  | $ | 712,240 |  |  | $ | 649,897 |  |  | $ | 370,256 |  |  | $ | 348,559 |
Preferred distributions |  |  | (1,545 | ) |  |  | (1,545 | ) |  |  | (773 | ) |  |  | (773 | )
Normalized FFO available to Common Shares and Units |  | $ | 710,695 |  |  | $ | 648,352 |  |  | $ | 369,483 |  |  | $ | 347,786 |
Normalized FFO per share and Unit – basic |  | $ | 1.82 |  |  | $ | 1.67 |  |  | $ | 0.95 |  |  | $ | 0.90 |
Normalized FFO per share and Unit – diluted |  | $ | 1.82 |  |  | $ | 1.66 |  |  | $ | 0.94 |  |  | $ | 0.89 |
Weighted average Common Shares and Units outstanding – basic |  |  | 389,942 |  |  |  | 387,531 |  |  |  | 390,032 |  |  |  | 387,664 |
Weighted average Common Shares and Units outstanding – diluted |  | 391,063 |  |  |  | 389,463 |  |  |  | 391,187 |  |  |  | 389,363 |

Note: See Adjustments from FFO to Normalized FFO for additional detail regarding the adjustments from FFO to Normalized FFO. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.

7

Table of Contents

Equity Residential

Consolidated B alance Sheets

(Amounts in thousands except for share amounts)

(Unaudited)

|  | June 30, |  |  | December 31, |
|  | 2023 |  |  | 2022 |
ASSETS |  |  |  |  |  |
Land |  | $ | 5,579,211 |  |  | $ | 5,580,878 |
Depreciable property |  |  | 22,697,597 |  |  |  | 22,334,369 |
Projects under development |  |  | 50,916 |  |  |  | 112,940 |
Land held for development |  |  | 61,334 |  |  |  | 60,567 |
Investment in real estate |  |  | 28,389,058 |  |  |  | 28,088,754 |
Accumulated depreciation |  |  | (9,428,549 | ) |  |  | (9,027,850 | )
Investment in real estate, net |  |  | 18,960,509 |  |  |  | 19,060,904 |
Investments in unconsolidated entities 1 |  |  | 304,710 |  |  |  | 279,024 |
Cash and cash equivalents |  |  | 35,701 |  |  |  | 53,869 |
Restricted deposits |  |  | 88,941 |  |  |  | 83,303 |
Right-of-use assets |  |  | 463,704 |  |  |  | 462,956 |
Other assets |  |  | 292,164 |  |  |  | 278,206 |
Total assets |  | $ | 20,145,729 |  |  | $ | 20,218,262 |
LIABILITIES AND EQUITY |  |  |  |  |  |
Liabilities: |  |  |  |  |  |
Mortgage notes payable, net |  | $ | 1,913,069 |  |  | $ | 1,953,438 |
Notes, net |  |  | 5,345,373 |  |  |  | 5,342,329 |
Line of credit and commercial paper |  |  | 184,474 |  |  |  | 129,955 |
Accounts payable and accrued expenses |  |  | 118,316 |  |  |  | 96,028 |
Accrued interest payable |  |  | 66,238 |  |  |  | 66,310 |
Lease liabilities |  |  | 313,866 |  |  |  | 308,748 |
Other liabilities |  |  | 294,263 |  |  |  | 306,941 |
Security deposits |  |  | 69,427 |  |  |  | 68,940 |
Distributions payable |  |  | 258,841 |  |  |  | 244,621 |
Total liabilities |  |  | 8,563,867 |  |  |  | 8,517,310 |
Commitments and contingencies |  |  |  |  |  |
Redeemable Noncontrolling Interests – Operating Partnership |  |  | 355,319 |  |  |  | 318,273 |
Equity: |  |  |  |  |  |
Shareholders' equity: |  |  |  |  |  |
Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized; 745,600 shares issued and outstanding as of June 30, 2023 and December 31, 2022 |  |  | 37,280 |  |  |  | 37,280 |
Common Shares of beneficial interest, $0.01 par value; 1,000,000,000 shares authorized; 379,032,722 shares issued and outstanding as of June 30, 2023 and 378,429,708 shares issued and outstanding as of December 31, 2022 |  |  | 3,790 |  |  |  | 3,784 |
Paid in capital |  |  | 9,472,628 |  |  |  | 9,476,085 |
Retained earnings |  |  | 1,506,460 |  |  |  | 1,658,837 |
Accumulated other comprehensive income (loss) |  |  | 3,708 |  |  |  | (2,547 | )
Total shareholders’ equity |  |  | 11,023,866 |  |  |  | 11,173,439 |
Noncontrolling Interests: |  |  |  |  |  |
Operating Partnership |  |  | 207,405 |  |  |  | 209,961 |
Partially Owned Properties |  |  | (4,728 | ) |  |  | (721 | )
Total Noncontrolling Interests |  |  | 202,677 |  |  |  | 209,240 |
Total equity |  |  | 11,226,543 |  |  |  | 11,382,679 |
Total liabilities and equity |  | $ | 20,145,729 |  |  | $ | 20,218,262 |

1 Includes $242.4 million and $218.0 million in unconsolidated development projects as of June 30, 2023 and December 31, 2022, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects.

8

Table of Contents

Equity Residential Portfolio Summary As of June 30, 2023

|  |  |  |  |  |  |  | % of Stabilized |  |  | Average |
|  |  |  |  | Apartment |  |  | Budgeted |  |  | Rental |
Markets/Metro Areas |  | Properties |  |  | Units |  |  | NOI |  |  | Rate |
Established Markets: |  |  |  |  |  |  |  |  |  |  |  |
Los Angeles |  |  | 59 |  |  |  | 15,012 |  |  |  | 17.7 | % |  | $ | 2,876 |
Orange County |  |  | 13 |  |  |  | 4,028 |  |  |  | 5.2 | % |  |  | 2,787 |
San Diego |  |  | 12 |  |  |  | 2,878 |  |  |  | 4.0 | % |  |  | 2,997 |
Subtotal – Southern California |  |  | 84 |  |  |  | 21,918 |  |  |  | 26.9 | % |  |  | 2,875 |
San Francisco |  |  | 44 |  |  |  | 11,790 |  |  |  | 15.8 | % |  |  | 3,285 |
Washington, D.C. |  |  | 48 |  |  |  | 15,028 |  |  |  | 15.6 | % |  |  | 2,592 |
New York |  |  | 34 |  |  |  | 8,536 |  |  |  | 13.9 | % |  |  | 4,488 |
Boston |  |  | 27 |  |  |  | 7,170 |  |  |  | 11.5 | % |  |  | 3,477 |
Seattle |  |  | 46 |  |  |  | 9,526 |  |  |  | 11.0 | % |  |  | 2,587 |
Subtotal – Established Markets |  |  | 283 |  |  |  | 73,968 |  |  |  | 94.7 | % |  |  | 3,092 |
Expansion Markets: |  |  |  |  |  |  |  |  |  |  |  |
Denver |  |  | 9 |  |  |  | 2,785 |  |  |  | 2.8 | % |  |  | 2,417 |
Atlanta |  |  | 5 |  |  |  | 1,477 |  |  |  | 1.4 | % |  |  | 2,196 |
Dallas/Ft. Worth |  |  | 4 |  |  |  | 1,241 |  |  |  | 0.7 | % |  |  | 1,875 |
Austin |  |  | 3 |  |  |  | 741 |  |  |  | 0.4 | % |  |  | 1,831 |
Subtotal – Expansion Markets |  |  | 21 |  |  |  | 6,244 |  |  |  | 5.3 | % |  |  | 2,189 |
Total |  |  | 304 |  |  |  | 80,212 |  |  |  | 100.0 | % |  | $ | 3,022 |

|  | Properties |  | Apartment Units
Wholly Owned Properties |  | 289 |  | 76,986
Partially Owned Properties – Consolidated |  | 15 |  | 3,226
|  | 304 |  | 80,212

Note: Projects under development are not included in the Portfolio Summary until construction has been completed.

2nd Quarter 2023 Earnings Release |  | 9

Table of Contents

Equity Residential

Portfolio Rollforward Q2 2023

($ in thousands)

|  | Properties |  |  | Apartment Units |  |  | Purchase Price |  |  | Acquisition Cap Rate |
3/31/2023 |  |  | 301 |  |  |  | 79,351 |  |  |  |  |  |  |
Acquisitions: |  |  |  |  |  |  |  |  |  |  |  |
Consolidated Rental Properties |  |  | 1 |  |  |  | 287 |  |  | $ | 108,000 |  |  |  | 5.0 | %
Consolidated Rental Properties – Not Stabilized (1) |  |  | 1 |  |  |  | 262 |  |  | $ | 78,600 |  |  |  | 6.6 | %
Completed Developments – Consolidated |  |  | 1 |  |  |  | 312 |  |  |  |  |  |  |
6/30/2023 |  |  | 304 |  |  |  | 80,212 |  |  |  |  |  |  |

Portfolio Rollforward 2023

($ in thousands)

|  | Properties |  |  | Apartment Units |  |  | Purchase Price |  |  | Acquisition Cap Rate |
12/31/2022 |  |  | 308 |  |  |  | 79,597 |  |  |  |  |  |  |
Acquisitions: |  |  |  |  |  |  |  |  |  |  |  |
Consolidated Rental Properties |  |  | 1 |  |  |  | 287 |  |  | $ | 108,000 |  |  |  | 5.0 | %
Consolidated Rental Properties – Not Stabilized (1) |  |  | 1 |  |  |  | 262 |  |  | $ | 78,600 |  |  |  | 6.6 | %
|  |  |  |  |  |  |  | Sales Price |  |  | Disposition Yield |
Dispositions: |  |  |  |  |  |  |  |  |  |  |  |
Consolidated Rental Properties |  |  | (7 | ) |  |  | (247 | ) |  | $ | (135,300 | ) |  |  | (5.3 | %)
Completed Developments – Consolidated |  |  | 1 |  |  |  | 312 |  |  |  |  |  |  |
Configuration Changes |  |  | — |  |  |  | 1 |  |  |  |  |  |  |
6/30/2023 |  |  | 304 |  |  |  | 80,212 |  |  |  |  |  |  |

(1)
The Company acquired one property in the Atlanta market in the second quarter of 2023 that is in lease-up and is expected to stabilize in its second year of ownership at the Acquisition Cap Rate listed above (5.7% when removing certain real estate tax benefits that will reduce over time).

2nd Quarter 2023 Earnings Release |  | 10

Table of Contents

Equity Residential

Second Quarter 2023 vs. Second Quarter 2022

Same Store Results/St atistics Includi ng 77,545 Same Store Apartment Units

($ in thousands except for Average Rental Rate)

Second Quarter 2023 |  | Second Quarter 2022 |
|  | Residential |  |  | % Change |  | Non- Residential |  |  | % Change |  | Total |  |  | % Change |  |  |  | Residential |  |  | Non- Residential |  |  | Total |
Revenues |  | $ | 672,595 |  | (1) | 5.5% |  | $ | 24,849 |  |  | 4.3% |  | $ | 697,444 |  |  | 5.5% |  | Revenues |  | $ | 637,547 |  |  | $ | 23,827 |  |  | $ | 661,374 |
Expenses |  | $ | 212,114 |  |  | 5.3% |  | $ | 6,920 |  |  | 14.2% |  | $ | 219,034 |  |  | 5.5% |  | Expenses |  | $ | 201,520 |  |  | $ | 6,058 |  |  | $ | 207,578 |
NOI |  | $ | 460,481 |  |  | 5.6% |  | $ | 17,929 |  |  | 0.9% |  | $ | 478,410 |  |  | 5.4% |  | NOI |  | $ | 436,027 |  |  | $ | 17,769 |  |  | $ | 453,796 |
Average Rental Rate |  | $ | 3,017 |  |  | 6.4% |  |  |  |  |  |  |  |  |  |  |  | Average Rental Rate | $ | 2,836 |  |  |  |  |  |  |
Physical Occupancy |  | 95.9 | % |  | (0.8%) |  |  |  |  |  |  |  |  |  |  |  | Physical Occupancy |  | 96.7 | % |  |  |  |  |  |
Turnover |  | 11.6 | % |  | 0.4% |  |  |  |  |  |  |  |  |  |  |  | Turnover |  | 11.2 | % |  |  |  |  |  |

Second Quarter 2023 vs. First Quarter 2023

Same Store Results/Statistics Including 78,531 Same Store Apartment Units

($ in thousands except for Average Rental Rate)

Second Quarter 2023 |  | First Quarter 2023 |
|  | Residential |  |  | % Change |  | Non- Residential |  |  | % Change |  | Total |  |  | % Change |  |  |  | Residential |  |  | Non- Residential |  |  | Total |
Revenues |  | $ | 683,155 |  | (1) | 1.8% |  | $ | 26,456 |  |  | (1.8%) |  | $ | 709,611 |  |  | 1.7% |  | Revenues |  | $ | 670,793 |  |  | $ | 26,951 |  |  | $ | 697,744 |
Expenses |  | $ | 215,239 |  |  | (4.5%) |  | $ | 7,368 |  |  | 2.3% |  | $ | 222,607 |  |  | (4.3%) |  | Expenses |  | $ | 225,376 |  |  | $ | 7,202 |  |  | $ | 232,578 |
NOI |  | $ | 467,916 |  |  | 5.1% |  | $ | 19,088 |  |  | (3.3%) |  | $ | 487,004 |  |  | 4.7% |  | NOI |  | $ | 445,417 |  |  | $ | 19,749 |  |  | $ | 465,166 |
Average Rental Rate |  | $ | 3,026 |  |  | 1.8% |  |  |  |  |  |  |  |  |  |  |  | Average Rental Rate | $ | 2,972 |  |  |  |  |  |  |
Physical Occupancy |  | 95.9 | % |  | 0.0% |  |  |  |  |  |  |  |  |  |  |  | Physical Occupancy |  | 95.9 | % |  |  |  |  |  |
Turnover |  | 11.6 | % |  | 2.5% |  |  |  |  |  |  |  |  |  |  |  | Turnover |  | 9.1 | % |  |  |  |  |  |

June YTD 2023 vs. June YTD 2022

Same Store Results/Statistics Including 76,952 Same Store Apartment Units

($ in thousands except for Average Rental Rate)

June YTD 2023 |  | June YTD 2022 |
|  | Residential |  |  | % Change |  | Non- Residential |  |  | % Change |  | Total |  |  | % Change |  |  |  | Residential |  |  | Non- Residential |  |  | Total |
Revenues |  | $ | 1,324,993 |  | (1) | 7.3% |  | $ | 50,085 |  |  | 7.0% |  | $ | 1,375,078 |  |  | 7.3% |  | Revenues |  | $ | 1,235,134 |  |  | $ | 46,813 |  |  | $ | 1,281,947 |
Expenses |  | $ | 430,638 |  |  | 6.2% |  | $ | 13,613 |  |  | 11.6% |  | $ | 444,251 |  |  | 6.4% |  | Expenses |  | $ | 405,484 |  |  | $ | 12,202 |  |  | $ | 417,686 |
NOI |  | $ | 894,355 |  |  | 7.8% |  | $ | 36,472 |  |  | 5.4% |  | $ | 930,827 |  |  | 7.7% |  | NOI |  | $ | 829,650 |  |  | $ | 34,611 |  |  | $ | 864,261 |
Average Rental Rate |  | $ | 2,995 |  |  | 8.0% |  |  |  |  |  |  |  |  |  |  |  | Average Rental Rate | $ | 2,772 |  |  |  |  |  |  |
Physical Occupancy |  | 95.9 | % |  | (0.7%) |  |  |  |  |  |  |  |  |  |  |  | Physical Occupancy |  | 96.6 | % |  |  |  |  |  |
Turnover |  | 20.6 | % |  | 0.4% |  |  |  |  |  |  |  |  |  |  |  | Turnover |  | 20.2 | % |  |  |  |  |  |

(1)
See page 12 for Same Store Residential Revenues with Leasing Concessions reflected on a cash basis. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.

2nd Quarter 2023 Earnings Release |  | 11

Table of Contents

Equity Residential

Same Store Residential Revenues – GAAP to Cash Basis (1)

($ in thousands)

| Second Quarter 2023 vs. Second Quarter 2022 |  |  | Second Quarter 2023 vs. First Quarter 2023 |  |  | June YTD 2023 vs. June YTD 2022 |
| 77,545 Same Store Apartment Units |  |  | 78,531 Same Store Apartment Units |  |  | 76,952 Same Store Apartment Units |
| Q2 2023 |  |  | Q2 2022 |  |  | Q2 2023 |  |  | Q1 2023 |  |  | June YTD 2023 |  |  | June YTD 2022 |
Same Store Residential Revenues (GAAP Basis) | $ | 672,595 |  |  | $ | 637,547 |  |  | $ | 683,155 |  |  | $ | 670,793 |  |  | $ | 1,324,993 |  |  | $ | 1,235,134 |
Leasing Concessions amortized |  | 2,705 |  |  |  | 2,156 |  |  |  | 3,256 |  |  |  | 2,846 |  |  |  | 4,744 |  |  |  | 6,005 |
Leasing Concessions granted |  | (3,921 | ) |  |  | (1,503 | ) |  |  | (4,125 | ) |  |  | (4,241 | ) |  |  | (7,766 | ) |  |  | (3,057 | )
Same Store Residential Revenues with Leasing Concessions on a cash basis | $ | 671,379 |  |  | $ | 638,200 |  |  | $ | 682,286 |  |  | $ | 669,398 |  |  | $ | 1,321,971 |  |  | $ | 1,238,082 |
% change - GAAP revenue |  | 5.5 | % |  |  |  |  |  | 1.8 | % |  |  |  |  |  | 7.3 | % |  |  |
% change - cash revenue |  | 5.2 | % |  |  |  |  |  | 1.9 | % |  |  |  |  |  | 6.8 | % |  |  |

(1)
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.

Same Store Net Operating Income By Quarter

Including 76,952 Same Store Apartment Units

($ in thousands)

|  | Q2 2023 |  |  | Q1 2023 |  |  | Q4 2022 |  |  | Q3 2022 |  |  | Q2 2022 |
Same store revenues |  | $ | 693,403 |  |  | $ | 681,675 |  |  | $ | 676,011 |  |  | $ | 671,160 |  |  | $ | 657,582 |
Same store expenses |  |  | 217,461 |  |  |  | 226,790 |  |  |  | 210,795 |  |  |  | 214,495 |  |  |  | 206,152 |
Same store NOI (includes Residential and Non-Residential) |  | $ | 475,942 |  |  | $ | 454,885 |  |  | $ | 465,216 |  |  | $ | 456,665 |  |  | $ | 451,430 |

2nd Quarter 2023 Earnings Release |  | 12

Table of Contents

Equity Residential

Same Store Resident/Tenant Accounts Receivable Balances

Including 76,952 Same Store Apartment Units

($ in thousands)

|  | Residential |  |  | Non-Residential |
Balance Sheet (Other assets): |  | June 30, 2023 |  |  | March 31, 2023 |  |  | June 30, 2023 |  |  | March 31, 2023 |
Resident/tenant accounts receivable balances | $ | 26,628 |  |  | $ | 32,408 |  |  | $ | 2,389 |  |  | $ | 2,414 |
Allowance for doubtful accounts |  | (22,335 | ) |  |  | (28,430 | ) |  |  | (1,383 | ) |  |  | (1,500 | )
Net receivable balances | $ | 4,293 |  |  | $ | 3,978 |  |  | $ | 1,006 |  |  | $ | 914 |
Straight-line receivable balances |  | $ | 6,067 |  | (1) | $ | 4,861 |  |  | $ | 13,546 |  |  | $ | 13,607 |

(1)
Total same store Residential Leasing Concessions granted in the second quarter of 2023 were approximately $3.9 million. The straight-line receivable balance of $6.1 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in the remainder of 2023 and the first half of 2024.

Same Store Residential Bad Debt

Including 76,952 Same Store Apartment Units

($ in thousands)

Income Statement (Rental income): |  | Q2 2023 |  |  | Q1 2023 |  |  | Q2 2022 |
Bad debts before governmental rental assistance |  | $ | 9,504 |  |  | $ | 11,866 |  |  | $ | 13,287 |
Governmental rental assistance received |  | (655 | ) |  |  | (1,167 | ) |  |  | (14,398 | )
Bad Debt, Net |  | $ | 8,849 |  |  | $ | 10,699 |  |  | $ | (1,111 | )
Bad Debt, Net as a % of Same Store Residential Revenues |  |  | 1.3 | % |  |  | 1.6 | % |  |  | (0.2 | %)

2nd Quarter 2023 Earnings Release |  | 13

Table of Contents

Equity Residential Second Quarter 2023 vs. Second Quarter 2022 Same Store Residential Results/Statistics by Market

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Increase (Decrease) from Prior Year's Quarter |
Markets/Metro Areas |  | Apartment Units |  |  | Q2 2023 % of Actual NOI |  |  | Q2 2023 Average Rental Rate |  |  | Q2 2023 Weighted Average Physical Occupancy % |  |  | Q2 2023 Turnover |  |  | Revenues |  |  | Expenses |  |  | NOI |  |  | Average Rental Rate |  |  | Physical Occupancy |  |  | Turnover |
Los Angeles |  |  | 14,415 |  |  |  | 17.8 | % |  | $ | 2,861 |  |  |  | 95.0 | % |  |  | 11.2 | % |  |  | (0.2 | %) | (1) |  | 8.5 | % |  |  | (3.5 | %) |  |  | 1.8 | % |  |  | (1.9 | %) |  |  | 2.0 | %
Orange County |  |  | 4,028 |  |  |  | 5.5 | % |  |  | 2,787 |  |  |  | 95.9 | % |  |  | 10.4 | % |  |  | 3.4 | % | (1) |  | 10.9 | % |  |  | 1.5 | % |  |  | 4.8 | % |  |  | (1.3 | %) |  |  | 1.6 | %
San Diego |  |  | 2,878 |  |  |  | 4.1 | % |  |  | 2,997 |  |  |  | 95.8 | % |  |  | 9.9 | % |  |  | 7.6 | % |  |  | 10.2 | % |  |  | 6.9 | % |  |  | 9.2 | % |  |  | (1.5 | %) |  |  | 0.2 | %
Subtotal – Southern California |  | 21,321 |  |  |  | 27.4 | % |  |  | 2,865 |  |  |  | 95.3 | % |  |  | 10.9 | % |  |  | 1.5 | % |  |  | 9.0 | % |  |  | (1.1 | %) |  |  | 3.4 | % |  |  | (1.7 | %) |  |  | 1.7 | %
San Francisco |  |  | 11,368 |  |  |  | 16.4 | % |  |  | 3,288 |  |  |  | 95.6 | % |  |  | 10.9 | % |  |  | 3.1 | % | (1) |  | 6.7 | % |  |  | 1.6 | % |  |  | 4.3 | % |  |  | (1.1 | %) |  |  | 1.5 | %
Washington, D.C. |  |  | 14,400 |  |  |  | 15.9 | % |  |  | 2,578 |  |  |  | 96.8 | % |  |  | 10.6 | % |  |  | 6.3 | % |  |  | 1.4 | % |  |  | 8.9 | % |  |  | 6.3 | % |  |  | 0.0 | % |  |  | (0.8 | %)
New York |  |  | 8,536 |  |  |  | 14.2 | % |  |  | 4,488 |  |  |  | 97.1 | % |  |  | 10.1 | % |  |  | 13.3 | % |  |  | 3.6 | % |  |  | 21.2 | % |  |  | 13.4 | % |  |  | 0.0 | % |  |  | (1.8 | %)
Seattle |  |  | 9,525 |  |  |  | 10.9 | % |  |  | 2,587 |  |  |  | 95.1 | % |  |  | 14.4 | % |  |  | 4.2 | % |  |  | 3.7 | % |  |  | 4.4 | % |  |  | 4.4 | % |  |  | (0.2 | %) |  |  | (0.2 | %)
Boston |  |  | 6,700 |  |  |  | 10.3 | % |  |  | 3,405 |  |  |  | 96.5 | % |  |  | 11.3 | % |  |  | 8.3 | % |  |  | 3.4 | % |  |  | 10.4 | % |  |  | 8.7 | % |  |  | (0.3 | %) |  |  | (0.7 | %)
Denver |  |  | 2,498 |  |  |  | 2.7 | % |  |  | 2,420 |  |  |  | 96.2 | % |  |  | 17.2 | % |  |  | 5.7 | % |  |  | 6.0 | % |  |  | 5.5 | % |  |  | 6.2 | % |  |  | (0.5 | %) |  |  | (0.5 | %)
Other Expansion Markets |  |  | 3,197 |  |  |  | 2.2 | % |  |  | 1,990 |  |  |  | 94.9 | % |  |  | 14.6 | % |  |  | 5.1 | % |  |  | 12.7 | % |  |  | (0.4 | %) |  |  | 7.0 | % |  |  | (1.9 | %) |  |  | 2.5 | %
Total |  |  | 77,545 |  |  |  | 100.0 | % |  | $ | 3,017 |  |  |  | 95.9 | % |  |  | 11.6 | % |  |  | 5.5 | % |  |  | 5.3 | % |  |  | 5.6 | % |  |  | 6.4 | % |  |  | (0.8 | %) |  |  | 0.4 | %

(1)
Excluding Bad Debt, Net, which includes the positive impact of governmental rental assistance in the second quarter of 2022, same store revenue growth would have been 5.6%, 6.9% and 4.6% for Los Angeles, Orange County and San Francisco, respectively.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the six months ended June 30, 2023.

2nd Quarter 2023 Earnings Release |  | 14

Table of Contents

Equity Residential Second Quarter 2023 vs. First Quarter 2023 Same Store Residential Results/Statistics by Market

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Increase (Decrease) from Prior Quarter |
Markets/Metro Areas |  | Apartment Units |  |  | Q2 2023 % of Actual NOI |  |  | Q2 2023 Average Rental Rate |  |  | Q2 2023 Weighted Average Physical Occupancy % |  |  | Q2 2023 Turnover |  |  | Revenues |  |  | Expenses |  |  | NOI |  |  | Average Rental Rate |  |  | Physical Occupancy |  |  | Turnover |
Los Angeles |  |  | 14,415 |  |  |  | 17.5 | % |  | $ | 2,861 |  |  |  | 95.0 | % |  |  | 11.2 | % |  |  | 2.5 | % |  |  | (5.3 | %) |  |  | 6.3 | % |  |  | 3.1 | % |  |  | (0.5 | %) |  |  | 1.3 | %
Orange County |  |  | 4,028 |  |  |  | 5.3 | % |  |  | 2,787 |  |  |  | 95.9 | % |  |  | 10.4 | % |  |  | 2.3 | % |  |  | 0.0 | % |  |  | 3.0 | % |  |  | 2.6 | % |  |  | (0.3 | %) |  |  | 3.1 | %
San Diego |  |  | 2,878 |  |  |  | 4.1 | % |  |  | 2,997 |  |  |  | 95.8 | % |  |  | 9.9 | % |  |  | 2.5 | % |  |  | (1.3 | %) |  |  | 3.7 | % |  |  | 2.1 | % |  |  | 0.4 | % |  |  | 0.2 | %
Subtotal – Southern California |  | 21,321 |  |  |  | 26.9 | % |  |  | 2,865 |  |  |  | 95.3 | % |  |  | 10.9 | % |  |  | 2.5 | % |  |  | (4.1 | %) |  |  | 5.2 | % |  |  | 2.9 | % |  |  | (0.3 | %) |  |  | 1.5 | %
San Francisco |  |  | 11,568 |  |  |  | 16.4 | % |  |  | 3,283 |  |  |  | 95.5 | % |  |  | 10.9 | % |  |  | 1.3 | % |  |  | (5.4 | %) |  |  | 4.4 | % |  |  | 1.3 | % |  |  | (0.1 | %) |  |  | 1.3 | %
Washington, D.C. |  |  | 14,716 |  |  |  | 16.1 | % |  |  | 2,587 |  |  |  | 96.8 | % |  |  | 10.6 | % |  |  | 2.2 | % |  |  | (4.7 | %) |  |  | 5.7 | % |  |  | 1.9 | % |  |  | 0.2 | % |  |  | 3.2 | %
New York |  |  | 8,536 |  |  |  | 14.0 | % |  |  | 4,488 |  |  |  | 97.1 | % |  |  | 10.1 | % |  |  | 1.6 | % |  |  | (3.9 | %) |  |  | 5.8 | % |  |  | 1.3 | % |  |  | 0.3 | % |  |  | 2.6 | %
Seattle |  |  | 9,525 |  |  |  | 10.7 | % |  |  | 2,587 |  |  |  | 95.1 | % |  |  | 14.4 | % |  |  | 0.3 | % |  |  | 2.8 | % |  |  | (0.7 | %) |  |  | 0.3 | % |  |  | 0.0 | % |  |  | 3.3 | %
Boston |  |  | 7,170 |  |  |  | 11.1 | % |  |  | 3,477 |  |  |  | 96.5 | % |  |  | 11.6 | % |  |  | 3.0 | % |  |  | (9.2 | %) |  |  | 8.8 | % |  |  | 2.0 | % |  |  | 1.0 | % |  |  | 3.6 | %
Denver |  |  | 2,498 |  |  |  | 2.7 | % |  |  | 2,420 |  |  |  | 96.2 | % |  |  | 17.2 | % |  |  | 1.4 | % |  |  | (9.1 | %) |  |  | 6.2 | % |  |  | 1.5 | % |  |  | (0.1 | %) |  |  | 6.1 | %
Other Expansion Markets |  |  | 3,197 |  |  |  | 2.1 | % |  |  | 1,990 |  |  |  | 94.9 | % |  |  | 14.6 | % |  |  | 1.0 | % |  |  | (7.3 | %) |  |  | 9.1 | % |  |  | 1.0 | % |  |  | 0.0 | % |  |  | 2.2 | %
Total |  |  | 78,531 |  |  |  | 100.0 | % |  | $ | 3,026 |  |  |  | 95.9 | % |  |  | 11.6 | % |  |  | 1.8 | % |  |  | (4.5 | %) |  |  | 5.1 | % |  |  | 1.8 | % |  |  | 0.0 | % |  |  | 2.5 | %

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the six months ended June 30, 2023.

2nd Quarter 2023 Earnings Release |  | 15

Table of Contents

Equity Residential June YTD 2023 vs. June YTD 2022 Same Store Residential Results/Statistics by Market

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Increase (Decrease) from Prior Year |
Markets/Metro Areas |  | Apartment Units |  |  | June YTD 23 % of Actual NOI |  |  | June YTD 23 Average Rental Rate |  |  | June YTD 23 Weighted Average Physical Occupancy % |  |  | June YTD 23 Turnover |  |  | Revenues |  |  | Expenses |  |  | NOI |  |  | Average Rental Rate |  |  | Physical Occupancy |  |  | Turnover |
Los Angeles |  |  | 14,415 |  |  |  | 17.8 | % |  | $ | 2,818 |  |  |  | 95.2 | % |  |  | 21.1 | % |  |  | 2.8 | % | (1) |  | 9.6 | % |  |  | 0.0 | % |  |  | 4.6 | % |  |  | (1.7 | %) |  |  | 3.5 | %
Orange County |  |  | 4,028 |  |  |  | 5.5 | % |  |  | 2,752 |  |  |  | 96.1 | % |  |  | 17.8 | % |  |  | 6.5 | % | (1) |  | 10.5 | % |  |  | 5.4 | % |  |  | 7.7 | % |  |  | (1.1 | %) |  |  | 2.7 | %
San Diego |  |  | 2,706 |  |  |  | 3.9 | % |  |  | 2,931 |  |  |  | 95.6 | % |  |  | 19.1 | % |  |  | 7.2 | % |  |  | 7.7 | % |  |  | 7.0 | % |  |  | 8.8 | % |  |  | (1.5 | %) |  |  | 0.7 | %
Subtotal – Southern California |  | 21,149 |  |  |  | 27.2 | % |  |  | 2,820 |  |  |  | 95.4 | % |  |  | 20.2 | % |  |  | 4.1 | % |  |  | 9.5 | % |  |  | 2.0 | % |  |  | 5.7 | % |  |  | (1.6 | %) |  |  | 2.9 | %
San Francisco |  |  | 11,368 |  |  |  | 16.5 | % |  |  | 3,265 |  |  |  | 95.6 | % |  |  | 20.4 | % |  |  | 4.8 | % | (1) |  | 7.0 | % |  |  | 3.9 | % |  |  | 5.9 | % |  |  | (1.0 | %) |  |  | 1.6 | %
Washington, D.C. |  |  | 14,400 |  |  |  | 16.0 | % |  |  | 2,555 |  |  |  | 96.7 | % |  |  | 17.9 | % |  |  | 6.6 | % |  |  | 3.7 | % |  |  | 8.0 | % |  |  | 6.7 | % |  |  | (0.1 | %) |  |  | (1.7 | %)
New York |  |  | 8,536 |  |  |  | 14.3 | % |  |  | 4,459 |  |  |  | 96.9 | % |  |  | 17.6 | % |  |  | 16.2 | % |  |  | 3.7 | % |  |  | 27.5 | % |  |  | 16.4 | % |  |  | (0.2 | %) |  |  | (2.5 | %)
Seattle |  |  | 9,525 |  |  |  | 11.3 | % |  |  | 2,583 |  |  |  | 95.1 | % |  |  | 25.6 | % |  |  | 6.3 | % |  |  | 3.3 | % |  |  | 7.6 | % |  |  | 6.2 | % |  |  | 0.1 | % |  |  | (0.3 | %)
Boston |  |  | 6,700 |  |  |  | 10.2 | % |  |  | 3,374 |  |  |  | 96.1 | % |  |  | 19.2 | % |  |  | 9.0 | % |  |  | 5.4 | % |  |  | 10.6 | % |  |  | 9.3 | % |  |  | (0.2 | %) |  |  | (0.5 | %)
Denver |  |  | 2,498 |  |  |  | 2.7 | % |  |  | 2,402 |  |  |  | 96.3 | % |  |  | 28.3 | % |  |  | 6.8 | % |  |  | 12.1 | % |  |  | 4.7 | % |  |  | 6.7 | % |  |  | 0.0 | % |  |  | 0.0 | %
Other Expansion Markets |  |  | 2,776 |  |  |  | 1.8 | % |  |  | 1,984 |  |  |  | 94.7 | % |  |  | 25.4 | % |  |  | 5.2 | % |  |  | 17.5 | % |  |  | (4.0 | %) |  |  | 7.0 | % |  |  | (1.9 | %) |  |  | 1.1 | %
Total |  |  | 76,952 |  |  |  | 100.0 | % |  | $ | 2,995 |  |  |  | 95.9 | % |  |  | 20.6 | % |  |  | 7.3 | % |  |  | 6.2 | % |  |  | 7.8 | % |  |  | 8.0 | % |  |  | (0.7 | %) |  |  | 0.4 | %

(1)
Excluding Bad Debt, Net, which includes the positive impact of governmental rental assistance in the six months ended June 30, 2022, same store revenue growth would have been 6.1%, 7.7% and 5.4% for Los Angeles, Orange County and San Francisco, respectively.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the six months ended June 30, 2023.

2nd Quarter 2023 Earnings Release |  | 16

Table of Contents

Equity Residential

Same Store Residential Net Effective Lease Pricing Statistics

For 76,952 Same Store Apartment Units

|  | New Lease Change (1) |  |  | Renewal Rate Achieved (1) |  |  | Blended Rate (1) |
Markets/Metro Areas |  | Q2 2023 |  |  | Q1 2023 |  |  | Q2 2023 |  |  | Q1 2023 |  |  | Q2 2023 |  |  | Q1 2023 |
Southern California |  |  | 3.5 | % |  |  | 4.6 | % |  |  | 6.9 | % |  |  | 6.2 | % |  |  | 5.4 | % |  |  | 5.4 | %
San Francisco |  |  | 1.4 | % |  |  | 2.0 | % |  |  | 6.0 | % |  |  | 6.1 | % |  |  | 3.8 | % |  |  | 4.3 | %
Washington, D.C. |  |  | 4.8 | % |  |  | 2.4 | % |  |  | 6.5 | % |  |  | 6.0 | % |  |  | 5.7 | % |  |  | 4.4 | %
New York |  |  | 4.2 | % |  |  | 2.4 | % |  |  | 5.1 | % |  |  | 6.3 | % |  |  | 4.7 | % |  |  | 4.6 | %
Seattle |  |  | (3.8 | %) |  |  | (5.8 | %) |  |  | 4.5 | % |  |  | 5.6 | % |  |  | 0.4 | % |  |  | (0.2 | %)
Boston |  |  | 4.4 | % |  |  | 0.6 | % |  |  | 6.1 | % |  |  | 6.9 | % |  |  | 5.4 | % |  |  | 3.8 | %
Denver |  |  | 0.9 | % |  |  | (2.4 | %) |  |  | 5.0 | % |  |  | 5.8 | % |  |  | 2.6 | % |  |  | 0.8 | %
Other Expansion Markets |  |  | (4.8 | %) |  |  | (5.3 | %) |  |  | 4.4 | % |  |  | 5.5 | % |  |  | (0.8 | %) |  |  | (0.8 | %)
Total |  |  | 2.3 | % |  |  | 1.3 | % |  |  | 5.9 | % |  |  | 6.1 | % |  |  | 4.3 | % |  |  | 3.9 | %

(1)
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions. See page 4 for July 2023 preliminary data.

2nd Quarter 2023 Earnings Release |  | 17

Table of Contents

Equity Residential

Second Quarter 2023 vs. Second Quarter 2022

Total Same Store Operating Expenses Including 77,545 Same Store Apartment Units

($ in thousands)

|  | Q2 2023 |  |  | Q2 2022 |  |  | $ Change (1) |  |  | % Change |  |  | % of Q2 2023 Operating Expenses |
Real estate taxes |  | $ | 90,898 |  |  | $ | 88,963 |  |  | $ | 1,935 |  |  |  | 2.2 | % |  |  | 41.5 | %
On-site payroll |  |  | 42,504 |  |  |  | 39,022 |  |  |  | 3,482 |  |  |  | 8.9 | % |  |  | 19.4 | %
Utilities |  |  | 31,578 |  |  |  | 31,501 |  |  |  | 77 |  |  |  | 0.2 | % |  |  | 14.4 | %
Repairs and maintenance |  |  | 31,233 |  |  |  | 27,421 |  |  |  | 3,812 |  |  |  | 13.9 | % |  |  | 14.3 | %
Insurance |  |  | 8,455 |  |  |  | 7,397 |  |  |  | 1,058 |  |  |  | 14.3 | % |  |  | 3.9 | %
Leasing and advertising |  |  | 2,528 |  |  |  | 2,619 |  |  |  | (91 | ) |  |  | (3.5 | %) |  |  | 1.1 | %
Other on-site operating expenses |  |  | 11,838 |  |  |  | 10,655 |  |  |  | 1,183 |  |  |  | 11.1 | % |  |  | 5.4 | %
Total Same Store Operating Expenses (2) (includes Residential and Non-Residential) |  | $ | 219,034 |  |  | $ | 207,578 |  |  | $ | 11,456 |  |  |  | 5.5 | % |  |  | 100.0 | %

June YTD 2023 vs. June YTD 2022

Total Same Store Operating Expenses Including 76,952 Same Store Apartment Units

($ in thousands)

|  | YTD 2023 |  |  | YTD 2022 |  |  | $ Change (1) |  |  | % Change |  |  | % of YTD 2023 Operating Expenses |
Real estate taxes |  | $ | 180,521 |  |  | $ | 176,328 |  |  | $ | 4,193 |  |  |  | 2.4 | % |  |  | 40.6 | %
On-site payroll |  |  | 84,629 |  |  |  | 80,021 |  |  |  | 4,608 |  |  |  | 5.8 | % |  |  | 19.1 | %
Utilities |  |  | 69,925 |  |  |  | 65,520 |  |  |  | 4,405 |  |  |  | 6.7 | % |  |  | 15.7 | %
Repairs and maintenance |  |  | 61,120 |  |  |  | 53,077 |  |  |  | 8,043 |  |  |  | 15.2 | % |  |  | 13.8 | %
Insurance |  |  | 16,830 |  |  |  | 14,719 |  |  |  | 2,111 |  |  |  | 14.3 | % |  |  | 3.8 | %
Leasing and advertising |  |  | 5,003 |  |  |  | 4,949 |  |  |  | 54 |  |  |  | 1.1 | % |  |  | 1.1 | %
Other on-site operating expenses |  |  | 26,223 |  |  |  | 23,072 |  |  |  | 3,151 |  |  |  | 13.7 | % |  |  | 5.9 | %
Total Same Store Operating Expenses (2) (includes Residential and Non-Residential) |  | $ | 444,251 |  |  | $ | 417,686 |  |  | $ | 26,565 |  |  |  | 6.4 | % |  |  | 100.0 | %

(1)
The quarter-over-quarter and year-over-year changes were primarily driven by the following factors:

Real estate taxes – Increase due to modest escalation in rates and assessed values.

On-site payroll – Increase due primarily to challenging comparable period and elevated employee benefit costs, partially offset by the impact of innovation initiatives.

Utilities – Moderation in the quarter-over-quarter rate of increase is primarily driven by lower commodity prices for gas and electric. Year-over-year increase primarily driven by higher commodity prices for gas and electric and higher trash expense.

Repairs and maintenance – Quarter-over-quarter increase primarily driven by continued wage pressure, particularly due to higher minimum wage on contracted services. Year-over-year increase was also impacted by increased outsourcing due to higher internal staffing utilization to address issues from California rain storms that occurred earlier this year.

Insurance – Increase due to higher premiums on property insurance renewal due to challenging conditions in the insurance market.

Other on-site operating expenses – Increase primarily driven by higher property-related legal expenses.

(2)
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

2nd Quarter 2023 Earnings Release |  | 18

Table of Contents

Equity Residential

Debt Summary as of June 30, 2023

($ in thousands)

|  | Debt Balances (1) |  |  | % of Total |  |  | Weighted Average Rates (1) |  |  | Weighted Average Maturities (years) |
Secured |  | $ | 1,913,069 |  |  |  | 25.7 | % |  |  | 3.63 | % |  |  | 4.4 |
Unsecured |  |  | 5,529,847 |  |  |  | 74.3 | % |  |  | 3.59 | % |  |  | 9.0 |
Total |  | $ | 7,442,916 |  |  |  | 100.0 | % |  |  | 3.60 | % |  |  | 7.8 |
Fixed Rate Debt: |  |  |  |  |  |  |  |  |  |  |  |
Secured – Conventional |  | $ | 1,609,298 |  |  |  | 21.6 | % |  |  | 3.45 | % |  |  | 3.4 |
Unsecured – Public |  |  | 5,345,373 |  |  |  | 71.8 | % |  |  | 3.54 | % |  |  | 9.3 |
Fixed Rate Debt |  |  | 6,954,671 |  |  |  | 93.4 | % |  |  | 3.52 | % |  |  | 8.0 |
Floating Rate Debt: |  |  |  |  |  |  |  |  |  |  |  |
Secured – Conventional |  |  | 66,863 |  |  |  | 0.9 | % |  |  | 7.17 | % |  |  | 2.0 |
Secured – Tax Exempt |  |  | 236,908 |  |  |  | 3.2 | % |  |  | 3.47 | % |  |  | 11.0 |
Unsecured – Revolving Credit Facility |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4.3 |
Unsecured – Commercial Paper Program (2) |  |  | 184,474 |  |  |  | 2.5 | % |  |  | 5.12 | % |  |  | — |
Floating Rate Debt |  |  | 488,245 |  |  |  | 6.6 | % |  |  | 4.71 | % |  |  | 5.8 |
Total |  | $ | 7,442,916 |  |  |  | 100.0 | % |  |  | 3.60 | % |  |  | 7.8 |

(1)
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
(2)
At June 30, 2023, the weighted average maturity of commercial paper outstanding was 26 days. The weighted average amount outstanding for the six months ended June 30, 2023 was approximately $164.5 million.

Note: The Company capitalized interest of approximately $7.0 million and $2.3 million during the six months ended June 30, 2023 and 2022, respectively. The Company capitalized interest of approximately $3.6 million and $1.3 million during the quarters ended June 30, 2023 and 2022, respectively.

2nd Quarter 2023 Earnings Release |  | 19

Table of Contents

Equity Residential

Debt Maturity Schedule as of June 30, 2023

($ in thousands)

Year |  | Fixed Rate |  |  | Floating Rate |  |  | Total |  |  | % of Total |  |  | Weighted Average Coupons on Fixed Rate Debt (1) |  |  | Weighted Average Coupons on Total Debt (1) |
2023 (2) |  | $ | 800,000 |  |  | $ | 188,487 |  | (3) | $ | 988,487 |  |  |  | 13.2 | % |  |  | 4.21 | % |  |  | 4.45 | %
2024 |  |  | — |  |  |  | 6,200 |  |  |  | 6,200 |  |  |  | 0.1 | % |  | N/A |  |  |  | 3.86 | %
2025 |  |  | 450,000 |  |  |  | 75,976 |  |  |  | 525,976 |  |  |  | 7.0 | % |  |  | 3.38 | % |  |  | 3.96 | %
2026 |  |  | 592,025 |  |  |  | 9,000 |  |  |  | 601,025 |  |  |  | 8.0 | % |  |  | 3.58 | % |  |  | 3.58 | %
2027 |  |  | 400,000 |  |  |  | 9,800 |  |  |  | 409,800 |  |  |  | 5.4 | % |  |  | 3.25 | % |  |  | 3.26 | %
2028 |  |  | 900,000 |  |  |  | 10,700 |  |  |  | 910,700 |  |  |  | 12.1 | % |  |  | 3.79 | % |  |  | 3.79 | %
2029 |  |  | 888,120 |  |  |  | 11,500 |  |  |  | 899,620 |  |  |  | 12.0 | % |  |  | 3.30 | % |  |  | 3.31 | %
2030 |  |  | 1,095,000 |  |  |  | 12,700 |  |  |  | 1,107,700 |  |  |  | 14.7 | % |  |  | 2.55 | % |  |  | 2.56 | %
2031 |  |  | 528,500 |  |  |  | 39,800 |  |  |  | 568,300 |  |  |  | 7.6 | % |  |  | 1.94 | % |  |  | 2.08 | %
2032 |  |  | — |  |  |  | 28,000 |  |  |  | 28,000 |  |  |  | 0.4 | % |  | N/A |  |  |  | 3.64 | %
2033+ |  |  | 1,350,850 |  |  |  | 110,900 |  |  |  | 1,461,750 |  |  |  | 19.5 | % |  |  | 4.39 | % |  |  | 4.28 | %
Subtotal |  |  | 7,004,495 |  |  |  | 503,063 |  |  |  | 7,507,558 |  |  |  | 100.0 | % |  |  | 3.48 | % |  |  | 3.57 | %
Deferred Financing Costs and Unamortized (Discount) |  |  | (49,824 | ) |  |  | (14,818 | ) |  |  | (64,642 | ) |  | N/A |  |  | N/A |  |  | N/A |
Total |  | $ | 6,954,671 |  |  | $ | 488,245 |  |  | $ | 7,442,916 |  |  |  | 100.0 | % |  |  | 3.48 | % |  |  | 3.57 | %

(1)
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
(2)
As of June 30, 2023, the Company had $450.0 million of ten-year forward starting SOFR swaps outstanding at a weighted average rate of 2.90% (currently equivalent to a ten-year U.S. Treasury of approximately 3.15%) to hedge the U.S. Treasury risk for the refinancing of 2023 maturities. See the Capital Markets Activity on page 4 of this release for details of subsequent activity related to these swaps.
(3)
Includes $185.2 million in principal outstanding on the Company's Commercial Paper Program.

2nd Quarter 2023 Earnings Release |  | 20

Table of Contents

Equity Residential

Selected Unsecured Public Debt Covenants

|  | June 30, |  | March 31,
|  | 2023 |  | 2023
Debt to Adjusted Total Assets (not to exceed 60%) |  | 26.9% |  | 26.7%
Secured Debt to Adjusted Total Assets (not to exceed 40%) |  | 7.7% |  | 8.0%
Consolidated Income Available for Debt Service to Maximum Annual Service Charges (must be at least 1.5 to 1) |  | 6.21 |  | 6.30
Total Unencumbered Assets to Unsecured Debt (must be at least 125%) |  | 518.6% |  | 528.9%

Note: These selected covenants represent the most restrictive financial covenants relating to ERP Operating Limited Partnership's ("ERPOP") outstanding public debt securities. Equity Residential is the general partner of ERPOP.

Selected Credit Ratios

|  | June 30, |  | March 31,
|  | 2023 |  | 2023
Total debt to Normalized EBITDAre |  | 4.30x |  | 4.27x
Net debt to Normalized EBITDAre |  | 4.27x |  | 4.17x
Unencumbered NOI as a % of total NOI |  | 88.5% |  | 88.3%

Note: See Normalized EBITDAre Reconciliations for detail.

2nd Quarter 2023 Earnings Release |  | 21

Table of Contents

Equity Residential

Capital Structure as o f June 30, 2023

(Amounts in thousands except for share/unit and per share amounts)

Secured Debt |  |  |  |  |  |  |  | $ | 1,913,069 |  |  |  | 25.7 | % |  |  |
Unsecured Debt |  |  |  |  |  |  |  |  | 5,529,847 |  |  |  | 74.3 | % |  |  |
Total Debt |  |  |  |  |  |  |  |  | 7,442,916 |  |  |  | 100.0 | % |  |  | 22.3 | %
Common Shares (includes Restricted Shares) |  |  | 379,032,722 |  |  |  | 96.8 | % |  |  |  |  |  |  |  |  |
Units (includes OP Units and Restricted Units) |  |  | 12,415,452 |  |  |  | 3.2 | % |  |  |  |  |  |  |  |  |
Total Shares and Units |  |  | 391,448,174 |  |  |  | 100.0 | % |  |  |  |  |  |  |  |  |
Common Share Price at June 30, 2023 |  | $ | 65.97 |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  | 25,823,836 |  |  |  | 99.9 | % |  |  |
Perpetual Preferred Equity (see below) |  |  |  |  |  |  |  |  | 37,280 |  |  |  | 0.1 | % |  |  |
Total Equity |  |  |  |  |  |  |  |  | 25,861,116 |  |  |  | 100.0 | % |  |  | 77.7 | %
Total Market Capitalization |  |  |  |  |  |  |  | $ | 33,304,032 |  |  |  |  |  |  | 100.0 | %

Perpetual Preferred Equity as of June 30, 2023

(Amounts in thousands except for share and per share amounts)

Series |  | Call Date |  | Outstanding Shares |  |  | Liquidation Value |  |  | Annual Dividend Per Share |  |  | Annual Dividend Amount |
Preferred Shares: |  |  |  |  |  |  |  |  |  |  |  |  |  |
8.29% Series K |  | 12/10/26 |  |  | 745,600 |  |  | $ | 37,280 |  |  | $ | 4.145 |  |  | $ | 3,091 |

2nd Quarter 2023 Earnings Release |  | 22

Table of Contents

Equity Residential Common Shar e and Unit Weighted Average Amounts Outstanding

|  | June YTD 2023 |  |  | June YTD 2022 |  |  | Q2 2023 |  |  | Q2 2022 |
Weighted Average Amounts Outstanding for Net Income Purposes: |  |  |  |  |  |  |  |  |  |  |  |
Common Shares - basic |  |  | 378,492,171 |  |  |  | 375,639,505 |  |  |  | 378,641,804 |  |  |  | 375,768,632 |
Shares issuable from assumed conversion/vesting of: |  |  |  |  |  |  |  |  |  |  |  |
- OP Units |  |  | 11,449,790 |  |  |  | 11,891,583 |  |  |  | 11,390,569 |  |  |  | 11,895,086 |
- long-term compensation shares/units |  |  | 1,121,169 |  |  |  | 1,862,666 |  |  |  | 1,155,127 |  |  |  | 1,697,634 |
- ATM forward sales |  |  | — |  |  |  | 68,823 |  |  |  | — |  |  |  | 1,470 |
Total Common Shares and Units - diluted |  |  | 391,063,130 |  |  |  | 389,462,577 |  |  |  | 391,187,500 |  |  |  | 389,362,822 |
Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes: |  |  |  |  |  |  |  |  |  |  |  |
Common Shares - basic |  |  | 378,492,171 |  |  |  | 375,639,505 |  |  |  | 378,641,804 |  |  |  | 375,768,632 |
OP Units - basic |  |  | 11,449,790 |  |  |  | 11,891,583 |  |  |  | 11,390,569 |  |  |  | 11,895,086 |
Total Common Shares and OP Units - basic |  |  | 389,941,961 |  |  |  | 387,531,088 |  |  |  | 390,032,373 |  |  |  | 387,663,718 |
Shares issuable from assumed conversion/vesting of: |  |  |  |  |  |  |  |  |  |  |  |
- long-term compensation shares/units |  |  | 1,121,169 |  |  |  | 1,862,666 |  |  |  | 1,155,127 |  |  |  | 1,697,634 |
- ATM forward sales |  |  | — |  |  |  | 68,823 |  |  |  | — |  |  |  | 1,470 |
Total Common Shares and Units - diluted |  |  | 391,063,130 |  |  |  | 389,462,577 |  |  |  | 391,187,500 |  |  |  | 389,362,822 |
Period Ending Amounts Outstanding: |  |  |  |  |  |  |  |  |  |  |  |
Common Shares (includes Restricted Shares) |  |  | 379,032,722 |  |  |  | 376,118,433 |  |  |  |  |  |  |
Units (includes OP Units and Restricted Units) |  |  | 12,415,452 |  |  |  | 12,851,180 |  |  |  |  |  |  |
Total Shares and Units |  |  | 391,448,174 |  |  |  | 388,969,613 |  |  |  |  |  |  |

2nd Quarter 2023 Earnings Release |  | 23

Table of Contents

Equity Residential Development and Lease-Up Projects as of June 30, 2023 (Amounts in thousands except for project and apartment unit amounts)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Estimated/Actual |  |
Projects |  | Location |  | Ownership Percentage |  | No. of Apartment Units |  |  | Total Budgeted Capital Cost |  |  | Total Book Value to Date |  |  | Total Debt (1) |  |  | Percentage Completed |  | Start Date |  | Initial Occupancy |  | Completion Date |  | Stabilization Date |  | Percentage Leased / Occupied
CONSOLIDATED: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Projects Under Development: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Laguna Clara II |  | Santa Clara, CA |  | 100% |  |  | 225 |  |  | $ | 152,621 |  |  | $ | 50,916 |  |  | $ | — |  |  | 31% |  | Q2 2022 |  | Q4 2024 |  | Q1 2025 |  | Q4 2025 |  | – / –
Projects Under Development - Consolidated |  |  |  |  | 225 |  |  |  | 152,621 |  |  |  | 50,916 |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  |
Projects Completed Not Stabilized: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Reverb (fka 9th and W) (2) |  | Washington, D.C. |  | 92% |  |  | 312 |  |  |  | 108,027 |  |  |  | 103,675 |  |  |  | 66,863 |  |  | 99% |  | Q3 2021 |  | Q2 2023 |  | Q2 2023 |  | Q3 2024 |  | 47% / 39%
Projects Completed Not Stabilized - Consolidated |  |  |  |  | 312 |  |  |  | 108,027 |  |  |  | 103,675 |  |  |  | 66,863 |  |  |  |  |  |  |  |  |  |  |  |  |
UNCONSOLIDATED: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Projects Under Development: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Alloy Sunnyside |  | Denver, CO |  | 80% |  |  | 209 |  |  |  | 66,004 |  |  |  | 52,878 |  |  |  | 19,028 |  |  | 79% |  | Q3 2021 |  | Q4 2023 |  | Q2 2024 |  | Q1 2025 |  | – / –
Alexan Harrison |  | Harrison, NY |  | 62% |  |  | 450 |  |  |  | 198,664 |  |  |  | 140,799 |  |  |  | 38,549 |  |  | 69% |  | Q3 2021 |  | Q1 2024 |  | Q4 2024 |  | Q2 2026 |  | – / –
Solana Beeler Park |  | Denver, CO |  | 90% |  |  | 270 |  |  |  | 81,206 |  |  |  | 42,820 |  |  |  | 7,263 |  |  | 44% |  | Q4 2021 |  | Q4 2023 |  | Q2 2024 |  | Q1 2025 |  | – / –
Remy (Toll) |  | Frisco, TX |  | 75% |  |  | 357 |  |  |  | 96,937 |  |  |  | 61,366 |  |  |  | 18,338 |  |  | 58% |  | Q1 2022 |  | Q1 2024 |  | Q4 2024 |  | Q3 2025 |  | – / –
Settler (Toll) |  | Fort Worth, TX |  | 75% |  |  | 362 |  |  |  | 81,775 |  |  |  | 41,518 |  |  |  | 955 |  |  | 48% |  | Q2 2022 |  | Q2 2024 |  | Q3 2024 |  | Q3 2025 |  | – / –
Lyle (Toll) (2) |  | Dallas, TX |  | 75% |  |  | 334 |  |  |  | 86,332 |  |  |  | 28,244 |  |  |  | 7,680 |  |  | 34% |  | Q3 2022 |  | Q4 2024 |  | Q2 2025 |  | Q1 2026 |  | – / –
Projects Under Development - Unconsolidated |  |  |  |  | 1,982 |  |  |  | 610,918 |  |  |  | 367,625 |  |  |  | 91,813 |  |  |  |  |  |  |  |  |  |  |  |  |
Total Development Projects - Consolidated |  |  |  |  |  |  | 537 |  |  |  | 260,648 |  |  |  | 154,591 |  |  |  | 66,863 |  |  |  |  |  |  |  |  |  |  |  |  |
Total Development Projects - Unconsolidated |  |  |  |  |  |  | 1,982 |  |  |  | 610,918 |  |  |  | 367,625 |  |  |  | 91,813 |  |  |  |  |  |  |  |  |  |  |  |  |
Total Development Projects |  |  |  |  |  |  | 2,519 |  |  | $ | 871,566 |  |  | $ | 522,216 |  |  | $ | 158,676 |  |  |  |  |  |  |  |  |  |  |  |  |

NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS | Total Budgeted Capital Cost |  |  | Q2 2023 NOI |
Projects Under Development - Consolidated | $ | 152,621 |  |  | $ | — |
Projects Completed Not Stabilized - Consolidated |  | 108,027 |  |  |  | (16 | )
Projects Under Development - Unconsolidated |  | 610,918 |  |  |  | — |
| $ | 871,566 |  |  | $ | (16 | )

(1)
All non-wholly owned projects are being partially funded with project-specific construction loans. None of these loans are recourse to the Company.
(2)
The land parcels under these projects are subject to long-term ground leases.

2nd Quarter 2023 Earnings Release |  | 24

Table of Contents

Equity Residential Capital Expenditures to Real Estate For the Six Months Ended June 30, 2023 (Amounts in thousands except for apartment unit and per apartment unit amounts)

|  | Same Store Properties |  |  | Non-Same Store Properties/Other |  |  | Total |  |  | Same Store Avg. Per Apartment Unit |
Total Apartment Units |  |  | 76,952 |  |  |  | 3,260 |  |  |  | 80,212 |  |  |  |
Building Improvements |  | $ | 53,622 |  |  | $ | 4,626 |  | (2) | $ | 58,248 |  |  | $ | 697 |
Renovation Expenditures |  |  | 31,400 |  | (1) |  | 11,241 |  | (2) |  | 42,641 |  |  |  | 408 |
Replacements |  |  | 33,474 |  |  |  | 884 |  |  |  | 34,358 |  |  |  | 435 |
Capital Expenditures to Real Estate (3) |  | $ | 118,496 |  |  | $ | 16,751 |  |  | $ | 135,247 |  |  | $ | 1,540 |

(1)
Renovation Expenditures on 1,050 same store apartment units for the six months ended June 30, 2023 approximated $29,904 per apartment unit renovated.
(2)
Includes expenditures for two properties that have been removed from same store while undergoing major renovations requiring a significant number of apartment units to be vacated to accommodate the extensive planned improvements. The renovations are expected to continue through at least the end of 2023 at both properties.
(3)
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.

2nd Quarter 2023 Earnings Release |  | 25

Table of Contents

Equity Residential
Normalized EBITDAre Reconciliations
(Amounts in thousands)

|  | Trailing Twelve Months |  |  | 2023 |  |  | 2022 |
|  | June 30, 2023 |  |  | March 31, 2023 |  |  | Q2 |  |  | Q1 |  |  | Q4 |  |  | Q3 |  |  | Q2 |
Net income |  | $ | 865,452 |  |  | $ | 953,268 |  |  | $ | 144,862 |  |  | $ | 220,071 |  |  | $ | 165,354 |  |  | $ | 335,165 |  |  | $ | 232,678 |
Interest expense incurred, net |  |  | 270,230 |  |  |  | 276,529 |  |  |  | 65,590 |  |  |  | 66,401 |  |  |  | 65,827 |  |  |  | 72,412 |  |  |  | 71,889 |
Amortization of deferred financing costs |  |  | 8,524 |  |  |  | 8,631 |  |  |  | 2,017 |  |  |  | 1,979 |  |  |  | 2,308 |  |  |  | 2,220 |  |  |  | 2,124 |
Amortization of above/below market lease intangibles |  |  | 4,464 |  |  |  | 4,464 |  |  |  | 1,116 |  |  |  | 1,116 |  |  |  | 1,116 |  |  |  | 1,116 |  |  |  | 1,116 |
Depreciation |  |  | 865,586 |  |  |  | 868,037 |  |  |  | 221,355 |  |  |  | 215,830 |  |  |  | 214,272 |  |  |  | 214,129 |  |  |  | 223,806 |
Income and other tax expense (benefit) |  |  | 961 |  |  |  | 916 |  |  |  | 336 |  |  |  | 298 |  |  |  | 175 |  |  |  | 152 |  |  |  | 291 |
EBITDA |  |  | 2,015,217 |  |  |  | 2,111,845 |  |  |  | 435,276 |  |  |  | 505,695 |  |  |  | 449,052 |  |  |  | 625,194 |  |  |  | 531,904 |
Net (gain) loss on sales of real estate properties |  |  | (296,652 | ) |  |  | (404,636 | ) |  |  | 87 |  |  |  | (100,209 | ) |  |  | 21 |  |  |  | (196,551 | ) |  |  | (107,897 | )
EBITDAre |  |  | 1,718,565 |  |  |  | 1,707,209 |  |  |  | 435,363 |  |  |  | 405,486 |  |  |  | 449,073 |  |  |  | 428,643 |  |  |  | 424,007 |
Write-off of pursuit costs (other expenses) |  |  | 4,258 |  |  |  | 4,649 |  |  |  | 661 |  |  |  | 1,332 |  |  |  | 1,484 |  |  |  | 781 |  |  |  | 1,052 |
(Income) loss from investments in unconsolidated entities - operations |  |  | 5,207 |  |  |  | 5,152 |  |  |  | 1,223 |  |  |  | 1,382 |  |  |  | 1,575 |  |  |  | 1,027 |  |  |  | 1,168 |
Realized (gain) loss on investment securities (interest and other income) |  |  | 3,315 |  |  |  | 3,317 |  |  |  | — |  |  |  | 87 |  |  |  | 3,225 |  |  |  | 3 |  |  |  | 2 |
Insurance/litigation settlement or reserve income (interest and other income) |  |  | (1,105 | ) |  |  | (1,223 | ) |  |  | (193 | ) |  |  | (800 | ) |  |  | (12 | ) |  |  | (100 | ) |  |  | (311 | )
Insurance/litigation/environmental settlement or reserve expense (other expenses) |  |  | 9,257 |  |  |  | 5,744 |  |  |  | 3,513 |  |  |  | 4,999 |  |  |  | 745 |  |  |  | — |  |  |  | — |
Advocacy contributions (other expenses) |  |  | 1,097 |  |  |  | 1,344 |  |  |  | 320 |  |  |  | 7 |  |  |  | 50 |  |  |  | 720 |  |  |  | 567 |
Data transformation project (other expenses) |  |  | 4,605 |  |  |  | 3,200 |  |  |  | 1,405 |  |  |  | 2,080 |  |  |  | 1,120 |  |  |  | — |  |  |  | — |
Real estate tax transaction adjustment (real estate taxes) |  |  | (18,072 | ) |  |  | (18,072 | ) |  |  | — |  |  |  | — |  |  |  | (18,072 | ) |  |  | — |  |  |  | — |
Other |  |  | 1,845 |  |  |  | 1,769 |  |  |  | 6 |  |  |  | 6 |  |  |  | 436 |  |  |  | 1,397 |  |  |  | (70 | )
Normalized EBITDAre |  | $ | 1,728,972 |  |  | $ | 1,713,089 |  |  | $ | 442,298 |  |  | $ | 414,579 |  |  | $ | 439,624 |  |  | $ | 432,471 |  |  | $ | 426,415 |
Balance Sheet Items: |  | June 30, 2023 |  |  | March 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total debt |  | $ | 7,442,916 |  |  | $ | 7,312,094 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  | (35,701 | ) |  |  | (133,460 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage principal reserves/sinking funds |  |  | (28,802 | ) |  |  | (27,017 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net debt |  | $ | 7,378,413 |  |  | $ | 7,151,617 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Note: EBITDA, EBITDAre and Normalized EBITDAre do not include any adjustments for the Company’s share of partially owned unconsolidated entities or the minority partner’s share of partially owned consolidated entities due to the immaterial size of the Company’s partially owned portfolio.

2nd Quarter 2023 Earnings Release |  | 26

Table of Contents

Equity Residential
Adjustments from FFO to Normalized FFO
(Amounts in thousands)

|  | Six Months Ended June 30, |  |  | Quarter Ended June 30, |
|  | 2023 |  |  | 2022 |  |  | Variance |  |  | 2023 |  |  | 2022 |  |  | Variance |
Impairment – non-operating real estate assets |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Write-off of pursuit costs (other expenses) |  |  | 1,993 |  |  |  | 2,515 |  |  |  | (522 | ) |  |  | 661 |  |  |  | 1,052 |  |  |  | (391 | )
Write-off of unamortized deferred financing costs (interest expense) |  |  | 47 |  |  |  | 92 |  |  |  | (45 | ) |  |  | 47 |  |  |  | 92 |  |  |  | (45 | )
Write-off of unamortized (premiums)/discounts/OCI (interest expense) |  |  | — |  |  |  | 377 |  |  |  | (377 | ) |  |  | — |  |  |  | 377 |  |  |  | (377 | )
Debt extinguishment and preferred share redemption (gains) losses |  |  | 47 |  |  |  | 469 |  |  |  | (422 | ) |  |  | 47 |  |  |  | 469 |  |  |  | (422 | )
(Income) loss from investments in unconsolidated entities ─ non-operating assets |  |  | 944 |  |  |  | 734 |  |  |  | 210 |  |  |  | 317 |  |  |  | 310 |  |  |  | 7 |
Realized (gain) loss on investment securities (interest and other income) |  |  | 87 |  |  |  | (2,064 | ) |  |  | 2,151 |  |  |  | — |  |  |  | 2 |  |  |  | (2 | )
Non-operating asset (gains) losses |  |  | 1,031 |  |  |  | (1,330 | ) |  |  | 2,361 |  |  |  | 317 |  |  |  | 312 |  |  |  | 5 |
Insurance/litigation settlement or reserve income (interest and other income) |  |  | (993 | ) |  |  | (1,538 | ) |  |  | 545 |  |  |  | (193 | ) |  |  | (311 | ) |  |  | 118 |
Insurance/litigation/environmental settlement or reserve expense (other expenses) |  |  | 8,512 |  |  |  | 750 |  |  |  | 7,762 |  |  |  | 3,513 |  |  |  | — |  |  |  | 3,513 |
Advocacy contributions (other expenses) |  |  | 327 |  |  |  | 742 |  |  |  | (415 | ) |  |  | 320 |  |  |  | 567 |  |  |  | (247 | )
Data transformation project (other expenses) |  |  | 3,485 |  |  |  | — |  |  |  | 3,485 |  |  |  | 1,405 |  |  |  | — |  |  |  | 1,405 |
Other |  |  | 12 |  |  |  | (139 | ) |  |  | 151 |  |  |  | 6 |  |  |  | (70 | ) |  |  | 76 |
Other miscellaneous items |  |  | 11,343 |  |  |  | (185 | ) |  |  | 11,528 |  |  |  | 5,051 |  |  |  | 186 |  |  |  | 4,865 |
Adjustments from FFO to Normalized FFO |  | $ | 14,414 |  |  | $ | 1,469 |  |  | $ | 12,945 |  |  | $ | 6,076 |  |  | $ | 2,019 |  |  | $ | 4,057 |

Note: See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.

2nd Quarter 2023 Earnings Release |  | 27

Table of Contents

Equity Residential Normalized FFO Guidance and Assumptions

The guidance/projections provided below are based on current expectations and are forward-looking. All guidance is given on a Normalized FFO basis. Therefore, certain items excluded from Normalized FFO, such as debt extinguishment costs/prepayment penalties and the write-off of pursuit costs, are not included in the estimates provided on this page. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.

|  | Q3 2023 |  | Revised Full Year 2023 |  | Previous Full Year 2023
2023 Normalized FFO Guidance (per share diluted) |  |  |  |  |  |
Expected Normalized FFO Per Share |  | $0.95 to $0.99 |  | $3.77 to $3.83 |  | $3.73 to $3.83 (3)
2023 Same Store Assumptions (includes Residential and Non-Residential) |  |  |  |
Physical Occupancy |  |  |  | 96.0% |  | 96.0% (3)
Revenue change |  |  |  | 5.5% to 6.25% |  | 5.5% to 6.25% (3)
Expense change |  |  |  | 4.0% to 4.5% |  | 4.0% to 5.0% (3)
NOI change (1) |  |  |  | 6.3% to 7.0% |  | 6.0% to 7.0% (3)
2023 Transaction Assumptions |  |  |  |  |  |
Consolidated rental acquisitions |  |  |  | $300.0M |  | $300.0M
Consolidated rental dispositions |  |  |  | $300.0M |  | $300.0M
Transaction Accretion (Dilution) |  |  |  | – |  | –
2023 Debt Assumptions |  |  |  |  |  |
Weighted average debt outstanding |  |  |  | $7.35B to $7.55B |  | $7.375B to $7.575B
Interest expense, net (on a Normalized FFO basis) |  |  |  | $265.5M to $271.5M |  | $274.5M to $280.5M
Capitalized interest |  |  |  | $11.0M to $14.0M |  | $10.0M to $14.0M
2023 Capital Expenditures to Real Estate Assumptions for Same Store Properties (2) |  |
Capital Expenditures to Real Estate for Same Store Properties |  |  |  | $255.0M |  | $240.0M
Capital Expenditures to Real Estate per Same Store Apartment Unit |  | $3,315 |  | $3,100
2023 Other Guidance Assumptions |  |  |  |  |  |
Property management expense |  |  |  | $116.5M to $119.5M |  | $119.0M to $122.0M
General and administrative expense |  |  |  | $59.5M to $63.5M |  | $55.5M to $59.5M
Debt offerings |  |  |  | $530.0M |  | $400.0M to $600.0M
Weighted average Common Shares and Units - Diluted |  | 391.3M |  | 391.3M

(1)
Approximately 20 basis point change in NOI percentage = $0.01 per share change in EPS/FFO per share/Normalized FFO per share.
(2)
During 2023, the Company expects to spend approximately $75.0 million for apartment unit Renovation Expenditures on approximately 2,500 same store apartment units at an average cost of approximately $30,000 per apartment unit renovated, which is included in the Capital Expenditures to Real Estate assumptions noted above.
(3)
Represents the updated guidance provided in the Company's May 30, 2023 press release. All other Previous Full Year 2023 items represent the guidance provided in the Company's first quarter 2023 earnings release.

2nd Quarter 2023 Earnings Release |  | 28

Table of Contents

Equity Residential Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms (Amounts in thousands except per share and per apartment unit data) (All per share data is diluted)

This Earnings Release and Supplemental Financial Information includes certain non-GAAP financial measures and other terms that management believes are helpful in understanding our business. The definitions and calculations of these non-GAAP financial measures and other terms may differ from the definitions and methodologies used by other real estate investment trusts (“REIT”) and, accordingly, may not be comparable. These non-GAAP financial measures should not be considered as an alternative to net earnings or any other measurement of performance computed in accordance with accounting principles generally accepted in the United States (“GAAP”) or as an alternative to cash flows from specific operating, investing or financing activities. Furthermore, these non-GAAP financial measures are not intended to be a measure of cash flow or liquidity.

Acquisition Capitalization Rate or Cap Rate – NOI that the Company anticipates receiving in the next 12 months (or the year two or three stabilized NOI for properties that are in lease-up at acquisition) less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $100-$450 per apartment unit depending on the age and condition of the asset) divided by the gross purchase price of the asset. The weighted average Acquisition Cap Rate for acquired properties is weighted based on the projected NOI streams and the relative purchase price for each respective property.

Average Rental Rate – Total Residential rental revenues reflected on a straight-line basis in accordance with GAAP divided by the weighted average occupied apartment units for the reporting period presented.

Bad Debt, Net – Change in rental income due to bad debt write-offs and reserves, net of amounts collected on previously written-off or reserved accounts.

Blended Rate – The weighted average of New Lease Change and Renewal Rate Achieved.

Capital Expenditures to Real Estate:

Building Improvements – Includes roof replacement, paving, building mechanical equipment systems, exterior siding and painting, major landscaping, furniture, fixtures and equipment for amenities and common areas, vehicles and office and maintenance equipment.

Renovation Expenditures – Apartment unit renovation costs (primarily kitchens and baths) designed to reposition these units for higher rental levels in their respective markets.

Replacements – Includes appliances, mechanical equipment, fixtures and flooring (including hardwood and carpeting).

Debt Balances:

Commercial Paper Program – The Company may borrow up to a maximum of $1.0 billion under its Commercial Paper Program subject to market conditions. The notes bear interest at various floating rates.

Revolving Credit Facility – The Company’s $2.5 billion unsecured revolving credit facility matures October 26, 2027. The interest rate on advances under the facility will generally be SOFR plus a spread (currently 0.725%), or based on bids received from the lending group, and an annual facility fee (currently 0.125%). Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating. In addition, the Company limits its utilization of the 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:

|  | June 30, 2023 |
Unsecured revolving credit facility commitment |  | $ | 2,500,000 |
Commercial paper balance outstanding |  |  | (185,187 | )
Unsecured revolving credit facility balance outstanding |  |  | — |
Other restricted amounts |  |  | (3,484 | )
Unsecured revolving credit facility availability |  | $ | 2,311,329 |

Debt Covenant Compliance – Our unsecured debt includes certain financial and operating covenants including, among other things, maintenance of certain financial ratios. These provisions are contained in the indentures applicable to each notes payable or the credit agreement for our line of credit. The Debt Covenant Compliance ratios that are provided show the Company's compliance with certain covenants governing our public unsecured debt. These covenants generally reflect our most restrictive financial covenants. The Company was in compliance with its unsecured debt covenants for all periods presented.

2nd Quarter 2023 Earnings Release |  | 29

Table of Contents

Equity Residential Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms – Continued (Amounts in thousands except per share and per apartment unit data) (All per share data is diluted)

Development Yield – NOI that the Company anticipates receiving in the next 12 months following stabilization less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $50-$150 per apartment unit depending on the type of asset) divided by the Total Budgeted Capital Cost of the asset. The weighted average Development Yield for development properties is weighted based on the projected NOI streams and the relative Total Budgeted Capital Cost for each respective property.

Disposition Yield – NOI that the Company anticipates giving up in the next 12 months less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $150-$450 per apartment unit depending on the age and condition of the asset) divided by the gross sales price of the asset. The weighted average Disposition Yield for sold properties is weighted based on the projected NOI streams and the relative sales price for each respective property.

Earnings Per Share ("EPS") – Net income per share calculated in accordance with GAAP. Expected EPS is calculated on a basis consistent with actual EPS. Due to the uncertain timing and extent of property dispositions and the resulting gains/losses on sales, actual EPS could differ materially from expected EPS.

EBITDA for Real Estate and Normalized EBITDA for Real Estate:

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”) – The National Association of Real Estate Investment Trusts (“Nareit”) defines EBITDAre (September 2017 White Paper) as net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for gains and losses from sales of depreciated operating properties, impairment write-downs of depreciated operating properties, impairment write-downs of investments in unconsolidated entities caused by a decrease in value of depreciated operating properties within the joint venture and adjustments to reflect the Company’s share of EBITDAre of investments in unconsolidated entities.

The Company believes that EBITDAre is useful to investors, creditors and rating agencies as a supplemental measure of the Company’s ability to incur and service debt because it is a recognized measure of performance by the real estate industry, and by excluding gains or losses related to sales or impairment of depreciated operating properties, EBITDAre can help compare the Company’s credit strength between periods or as compared to different companies.

Normalized Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“Normalized EBITDAre”) – Represents net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for non-comparable items. Normalized EBITDAre, total debt to Normalized EBITDAre and net debt to Normalized EBITDAre are important metrics in evaluating the credit strength of the Company and its ability to service its debt obligations. The Company believes that Normalized EBITDAre, total debt to Normalized EBITDAre, and net debt to Normalized EBITDAre are useful to investors, creditors and rating agencies because they allow investors to compare the Company’s credit strength to prior reporting periods and to other companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual credit quality.

Economic Gain (Loss) – Economic Gain (Loss) is calculated as the net gain (loss) on sales of real estate properties in accordance with GAAP, excluding accumulated depreciation. The Company generally considers Economic Gain (Loss) to be an appropriate supplemental measure to net gain (loss) on sales of real estate properties in accordance with GAAP because it is one indication of the gross value created by the Company's acquisition, development, renovation, management and ultimate sale of a property and because it helps investors to understand the relationship between the cash proceeds from a sale and the cash invested in the sold property. The following table presents a reconciliation of net gain (loss) on sales of real estate properties in accordance with GAAP to Economic Gain (Loss):

|  | Six Months Ended June 30, 2023 |  |  | Quarter Ended June 30, 2023 |
Net Gain (Loss) on Sales of Real Estate Properties |  | $ | 100,122 |  |  | $ | (87 | )
Accumulated Depreciation Gain |  |  | (36,486 | ) |  |  | — |
Economic Gain (Loss) |  | $ | 63,636 |  |  | $ | (87 | )

Forecasted Embedded Growth – The positive or negative contribution to growth implied by annualizing total lease income anticipated for the last month of the current year (without regard to vacancy) compared to anticipated actual full year lease income for the current year (without regard to vacancy) and excluding the impact of Leasing Concessions and other income. This metric is a helpful data point in that it captures the impact of leases in existence at the end of the current year and their impact on rental income for the following year.

2nd Quarter 2023 Earnings Release |  | 30

Table of Contents

Equity Residential Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms – Continued (Amounts in thousands except per share and per apartment unit data) (All per share data is diluted)

FFO and Normalized FFO:

Funds From Operations (“FFO”) – Nareit defines FFO (December 2018 White Paper) as net income (computed in accordance with GAAP), excluding gains or losses from sales and impairment write-downs of depreciable real estate and land when connected to the main business of a REIT, impairment write-downs of investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity and depreciation and amortization related to real estate. Adjustments for partially owned consolidated and unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. Expected FFO per share is calculated on a basis consistent with actual FFO per share and is considered an appropriate supplemental measure of expected operating performance when compared to expected EPS.

The Company believes that FFO and FFO available to Common Shares and Units are helpful to investors as supplemental measures of the operating performance of a real estate company, because they are recognized measures of performance by the real estate industry and by excluding gains or losses from sales and impairment write-downs of depreciable real estate and excluding depreciation related to real estate (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO and FFO available to Common Shares and Units can help compare the operating performance of a company’s real estate between periods or as compared to different companies.

Normalized Funds From Operations ("Normalized FFO" or "NFFO") – Normalized FFO begins with FFO and excludes:

•
the impact of any expenses relating to non-operating real estate asset impairment;
•
pursuit cost write-offs;
•
gains and losses from early debt extinguishment and preferred share redemptions;
•
gains and losses from non-operating assets; and
•
other miscellaneous items.

Expected Normalized FFO per share is calculated on a basis consistent with actual Normalized FFO per share and is considered an appropriate supplemental measure of expected operating performance when compared to expected EPS.

The Company believes that Normalized FFO and Normalized FFO available to Common Shares and Units are helpful to investors as supplemental measures of the operating performance of a real estate company because they allow investors to compare the Company's operating performance to its performance in prior reporting periods and to the operating performance of other real estate companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company's actual operating results.

FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units do not represent net income, net income available to Common Shares or net cash flows from operating activities in accordance with GAAP. Therefore, FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units should not be exclusively considered as alternatives to net income, net income available to Common Shares or net cash flows from operating activities as determined by GAAP or as a measure of liquidity. The Company's calculation of FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units may differ from other real estate companies due to, among other items, variations in cost capitalization policies for capital expenditures and, accordingly, may not be comparable to such other real estate companies.

FFO available to Common Shares and Units and Normalized FFO available to Common Shares and Units are calculated on a basis consistent with net income available to Common Shares and reflects adjustments to net income for preferred distributions and premiums on redemption of preferred shares in accordance with GAAP. The equity positions of various individuals and entities that contributed their properties to the Operating Partnership in exchange for OP Units are collectively referred to as the "Noncontrolling Interests – Operating Partnership". Subject to certain restrictions, the Noncontrolling Interests – Operating Partnership may exchange their OP Units for Common Shares on a one-for-one basis.

2nd Quarter 2023 Earnings Release |  | 31

Table of Contents

Equity Residential Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms – Continued (Amounts in thousands except per share and per apartment unit data) (All per share data is diluted)

The following table presents reconciliations of EPS to FFO per share and Normalized FFO per share for Consolidated Statements of Funds From Operations and Normalized Funds From Operations.

|  | Actual June |  |  | Actual June |  |  | Actual |  |  | Actual |  |  | Expected |  |  | Expected |
|  | YTD 2023 |  |  | YTD 2022 |  |  | Q2 2023 |  |  | Q2 2022 |  |  | Q3 2023 |  |  | 2023 |
|  | Per Share |  |  | Per Share |  |  | Per Share |  |  | Per Share |  |  | Per Share |  |  | Per Share |
EPS – Diluted |  | $ | 0.92 |  |  | $ | 0.78 |  |  | $ | 0.37 |  |  | $ | 0.59 |  |  | $0.59 to $0.63 |  |  | $1.95 to $2.01 |
Depreciation expense |  |  | 1.11 |  |  |  | 1.16 |  |  |  | 0.56 |  |  |  | 0.58 |  |  |  | 0.56 |  |  |  | 2.23 |
Net (gain) loss on sales |  |  | (0.25 | ) |  |  | (0.28 | ) |  |  | — |  |  |  | (0.28 | ) |  |  | (0.21 | ) |  |  | (0.46 | )
Impairment – operating real estate assets |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
FFO per share – Diluted |  |  | 1.78 |  |  |  | 1.66 |  |  |  | 0.93 |  |  |  | 0.89 |  |  | 0.94 to 0.98 |  |  | 3.72 to 3.78 |
Impairment – non-operating real estate assets |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Write-off of pursuit costs |  |  | 0.01 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.01 |
Debt extinguishment and preferred share redemption (gains) losses |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Non-operating asset (gains) losses |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other miscellaneous items |  |  | 0.03 |  |  |  | — |  |  |  | 0.01 |  |  |  | — |  |  |  | 0.01 |  |  |  | 0.04 |
Normalized FFO per share – Diluted |  | $ | 1.82 |  |  | $ | 1.66 |  |  | $ | 0.94 |  |  | $ | 0.89 |  |  | $0.95 to $0.99 |  |  | $3.77 to $3.83 |

Lease-Up NOI – Represents NOI for development properties: (i) in various stages of lease-up; and (ii) where lease-up has been completed but the properties were not stabilized (defined as having achieved 90% occupancy for three consecutive months) for all of the current and comparable periods presented.

Leasing Concessions – Reflects upfront discounts on both new move-in and renewal leases on a straight-line basis.

Net Operating Income (“NOI”) – NOI is the Company’s primary financial measure for evaluating each of its apartment properties. NOI is defined as rental income less direct property operating expenses (including real estate taxes and insurance). The Company believes that NOI is helpful to investors as a supplemental measure of its operating performance because it is a direct measure of the actual operating results of the Company's apartment properties. NOI does not include an allocation of property management expenses either in the current or comparable periods. Rental income for all leases and operating expense for ground leases (for both same store and non-same store properties) are reflected on a straight-line basis in accordance with GAAP for the current and comparable periods.

The following tables present reconciliations of operating income per the consolidated statements of operations to NOI, along with rental income, operating expenses and NOI per the consolidated statements of operations allocated between same store and non-same store/other results (see Same Store Results):

|  | Six Months Ended June 30, |  |  | Quarter Ended June 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Operating income |  | $ | 516,049 |  |  | $ | 459,672 |  |  | $ | 218,461 |  |  | $ | 309,934 |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |
Property management |  |  | 62,145 |  |  |  | 57,306 |  |  |  | 30,679 |  |  |  | 26,559 |
General and administrative |  |  | 35,041 |  |  |  | 33,661 |  |  |  | 18,876 |  |  |  | 16,423 |
Depreciation |  |  | 437,185 |  |  |  | 453,767 |  |  |  | 221,355 |  |  |  | 223,806 |
Net (gain) loss on sales of real estate properties |  |  | (100,122 | ) |  |  | (107,795 | ) |  |  | 87 |  |  |  | (107,897 | )
Total NOI |  | $ | 950,298 |  |  | $ | 896,611 |  |  | $ | 489,458 |  |  | $ | 468,825 |
Rental income: |  |  |  |  |  |  |  |  |  |  |  |
Same store |  | $ | 1,375,078 |  |  | $ | 1,281,947 |  |  | $ | 697,444 |  |  | $ | 661,374 |
Non-same store/other |  |  | 47,319 |  |  |  | 58,431 |  |  |  | 19,865 |  |  |  | 25,656 |
Total rental income |  |  | 1,422,397 |  |  |  | 1,340,378 |  |  |  | 717,309 |  |  |  | 687,030 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Same store |  |  | 444,251 |  |  |  | 417,686 |  |  |  | 219,034 |  |  |  | 207,578 |
Non-same store/other |  |  | 27,848 |  |  |  | 26,081 |  |  |  | 8,817 |  |  |  | 10,627 |
Total operating expenses |  |  | 472,099 |  |  |  | 443,767 |  |  |  | 227,851 |  |  |  | 218,205 |
NOI: |  |  |  |  |  |  |  |  |  |  |  |
Same store |  |  | 930,827 |  |  |  | 864,261 |  |  |  | 478,410 |  |  |  | 453,796 |
Non-same store/other |  |  | 19,471 |  |  |  | 32,350 |  |  |  | 11,048 |  |  |  | 15,029 |
Total NOI |  | $ | 950,298 |  |  | $ | 896,611 |  |  | $ | 489,458 |  |  | $ | 468,825 |

2nd Quarter 2023 Earnings Release |  | 32

Table of Contents

Equity Residential Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms – Continued (Amounts in thousands except per share and per apartment unit data) (All per share data is diluted)

New Lease Change – The net effective change in rent (inclusive of Leasing Concessions) for a lease with a new or transferring resident compared to the rent for the prior lease of the identical apartment unit, regardless of lease term.

Non-Residential – Consists of revenues and expenses from retail and public parking garage operations.

Non-Same Store Properties – For annual comparisons, primarily includes all properties acquired during 2022 and 2023, plus any properties in lease-up and not stabilized as of January 1, 2022.

Percentage of Residents Renewing – Leases renewed expressed as a percentage of total renewal offers extended during the reporting period.

Physical Occupancy – The weighted average occupied apartment units for the reporting period divided by the average of total apartment units available for rent for the reporting period.

Pricing Trend – Weighted average of 12-month base rent including amenity amount less Leasing Concessions on 12-month signed leases for the reporting period.

Renewal Rate Achieved – The net effective change in rent (inclusive of Leasing Concessions) for a new lease on an apartment unit where the lease has been renewed as compared to the rent for the prior lease of the identical apartment unit, regardless of lease term.

Residential – Consists of multifamily apartment revenues and expenses.

Same Store Operating Expenses:

On-site Payroll – Includes payroll and related expenses for on-site personnel including property managers, leasing consultants and maintenance staff.

Other On-site Operating Expenses – Includes ground lease costs and administrative costs such as office supplies, telephone and data charges and association and business licensing fees.

Repairs and Maintenance – Includes general maintenance costs, apartment unit turnover costs including interior painting, routine landscaping, security, exterminating, fire protection, snow removal, elevator, roof and parking lot repairs and other miscellaneous building repair and maintenance costs.

Utilities – Represents gross expenses prior to any recoveries under the Resident Utility Billing System (“RUBS”). Recoveries are reflected in rental income.

Same Store Properties – For annual comparisons, primarily includes all properties acquired or completed that are stabilized prior to January 1, 2022, less properties subsequently sold. Properties are included in Same Store when they are stabilized for all of the current and comparable periods presented.

Same Store Residential Revenues – Revenues from our Same Store Properties presented on a GAAP basis which reflects the impact of Leasing Concessions on a straight-line basis.

Same Store Residential Revenues with Leasing Concessions on a cash basis is presented in Same Store Results and is considered by the Company to be a supplemental measure to Same Store Residential Revenues in conformity with GAAP to help investors evaluate the impact of both current and historical Leasing Concessions on GAAP-based Same Store Residential Revenues and to more readily enable comparisons to revenue as reported by other companies. Same Store Residential Revenues with Leasing Concessions on a cash basis reflects the impact of Leasing Concessions used in the period and allows an investor to understand the historical trend in cash Leasing Concessions.

% of Stabilized Budgeted NOI – Represents original budgeted 2023 NOI for stabilized properties and projected annual NOI at stabilization (defined as having achieved 90% occupancy for three consecutive months) for properties that are in lease-up.

Total Budgeted Capital Cost – Estimated remaining cost for projects under development and/or developed plus all capitalized costs incurred to date, including land acquisition costs, construction costs, capitalized real estate taxes and insurance, capitalized interest and loan fees, permits, professional fees, allocated development overhead and other regulatory fees, plus any estimates of costs remaining to be funded for all projects, all in accordance with GAAP. Amounts for partially owned consolidated and unconsolidated properties are presented at 100% of the project.

2nd Quarter 2023 Earnings Release |  | 33

Table of Contents

Equity Residential Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms – Continued (Amounts in thousands except per share and per apartment unit data) (All per share data is diluted)

Total Market Capitalization – The aggregate of the market value of the Company’s outstanding common shares, including restricted shares, the market value of the Company’s operating partnership units outstanding, including restricted units (based on the market value of the Company’s common shares) and the outstanding principal balance of debt. The Company believes this is a useful measure of a real estate operating company’s long-term liquidity and balance sheet strength, because it shows an approximate relationship between a company’s total debt and the current total market value of its assets based on the current price at which the Company’s common shares trade. However, because this measure of leverage changes with fluctuations in the Company’s share price, which occur regularly, this measure may change even when the Company’s earnings, interest and debt levels remain stable.

Traffic – Consists of an expression of interest in an apartment by completing an in-person tour, self-guided tour or virtual tour that may result in an application to lease.

Transaction Accretion (Dilution) – Represents the spread between the Acquisition Cap Rate and the Disposition Yield.

Turnover – Total Residential move-outs (including inter-property and intra-property transfers) divided by total Residential apartment units.

Unencumbered NOI % – Represents NOI generated by consolidated real estate assets unencumbered by outstanding secured debt as a percentage of total NOI generated by all of the Company's consolidated real estate assets.

Unlevered Internal Rate of Return (“IRR”) – The Unlevered IRR on sold properties is the compound annual rate of return calculated by the Company based on the timing and amount of: (i) the gross purchase price of the property plus any direct acquisition costs incurred by the Company; (ii) total revenues earned during the Company’s ownership period; (iii) total direct property operating expenses (including real estate taxes and insurance) incurred during the Company’s ownership period; (iv) capital expenditures incurred during the Company’s ownership period; and (v) the gross sales price of the property net of selling costs.

The calculation of the Unlevered IRR does not include an adjustment for the Company’s property management expense, general and administrative expense or interest expense (including loan assumption costs and other loan-related costs). Therefore, the Unlevered IRR is not a substitute for net income as a measure of our performance. Management believes that the Unlevered IRR achieved during the period a property is owned by the Company is useful because it is one indication of the gross value created by the Company’s acquisition, development, renovation, management and ultimate sale of a property, before the impact of Company overhead. The Unlevered IRR achieved on the properties as cited in this release should not be viewed as an indication of the gross value created with respect to other properties owned by the Company, and the Company does not represent that it will achieve similar Unlevered IRRs upon the disposition of other properties. The weighted average Unlevered IRR for sold properties is weighted based on all cash flows over the investment period for each respective property, including net sales proceeds.

Weighted Average Coupons – Contractual interest rate for each debt instrument weighted by principal balances as of June 30, 2023. In case of debt for which fair value hedges are in place, the rate payable under the corresponding derivatives is used in lieu of the contractual interest rate.

Weighted Average Rates – Interest expense for each debt instrument for the six months ended June 30, 2023 weighted by its average principal balance for the same period. Interest expense includes amortization of premiums, discounts and other comprehensive income on debt and related derivative instruments. In case of debt for which derivatives are in place, the income or expense recognized under the corresponding derivatives is included in the total interest expense for the period.

2nd Quarter 2023 Earnings Release |  | 34