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Debt
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Debt
8.
Debt

EQR does not have any indebtedness as all debt is incurred by the Operating Partnership. Weighted average interest rates noted below for the years ended December 31, 2024 and 2023 include the effect of any derivative instruments and amortization of premiums/discounts/OCI (other comprehensive income) on debt and derivatives.

Mortgage Notes Payable

The following tables summarize the Company’s mortgage notes payable activity for the years ended December 31, 2024 and 2023, respectively (amounts in thousands):

 

 

 

Mortgage notes
payable, net as of
December 31, 2023

 

 

Proceeds

 

 

Lump sum
payoffs

 

 

Scheduled
principal
repayments

 

 

Amortization
of premiums/
discounts

 

 

Amortization
of deferred
financing
costs, net (1)

 

 

Mortgage notes
payable, net as of
December 31, 2024

 

Fixed Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured – Conventional

 

$

1,398,598

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,594

 

 

$

907

 

 

$

1,401,099

 

Floating Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured – Tax Exempt

 

 

234,304

 

 

 

—

 

 

 

—

 

 

 

(6,100

)

 

 

1,247

 

 

 

140

 

 

 

229,591

 

Total

 

$

1,632,902

 

 

$

—

 

 

$

—

 

 

$

(6,100

)

 

$

2,841

 

 

$

1,047

 

 

$

1,630,690

 

 

(1)
Represents amortization of deferred financing costs, net of debt financing costs.

 

 

 

Mortgage notes
payable, net as of
December 31, 2022

 

 

Proceeds

 

 

Assumptions

 

 

Lump sum
payoffs

 

 

Scheduled
principal
repayments

 

 

Amortization
of premiums/
discounts

 

 

Amortization
of deferred
financing
costs, net (1)

 

 

Mortgage notes
payable, net as of
December 31, 2023

 

Fixed Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured – Conventional

 

$

1,608,838

 

 

$

550,000

 

 (2)

$

42,256

 

 (3)

$

(800,000

)

 (2)

$

—

 

 

$

601

 

 

$

(3,097

)

 

$

1,398,598

 

Floating Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured – Conventional

 

 

108,378

 

 

 

22,896

 

 

 

—

 

 

 

(132,598

)

 

 

(54

)

 

 

—

 

 

 

1,378

 

 

 

—

 

Secured – Tax Exempt

 

 

236,222

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,300

)

 

 

1,242

 

 

 

140

 

 

 

234,304

 

Floating Rate Debt

 

 

344,600

 

 

 

22,896

 

 

 

—

 

 

 

(132,598

)

 

 

(3,354

)

 

 

1,242

 

 

 

1,518

 

 

 

234,304

 

Total

 

$

1,953,438

 

 

$

572,896

 

 

$

42,256

 

 

$

(932,598

)

 

$

(3,354

)

 

$

1,843

 

 

$

(1,579

)

 

$

1,632,902

 

 

(1)
Represents amortization of deferred financing costs, net of debt financing costs.
(2)
Obtained $200.0 million of 5.18% fixed rate mortgage debt maturing in September 2033 and $350.0 million of 5.25% fixed rate mortgage debt maturing in September 2033. The secured notes totaling $550.0 million have an all-in effective interest rate of approximately 4.7%. The proceeds from these loans were used, along with funding from the Company’s commercial paper note program, to repay $800.0 million of 4.21% fixed rate mortgage debt that was due to mature in November 2023.
(3)
Assumed $53.5 million of 2.24% fixed rate mortgage debt maturing in September 2030 on one acquired property and recorded an initial discount of approximately $11.2 million.

The following table summarizes certain interest rate and maturity date information as of and for the years ended December 31, 2024 and 2023, respectively:

 

 

 

December 31, 2024

 

December 31, 2023

Interest Rate Ranges (ending)

 

0.10% - 5.25%

 

0.10% - 5.25%

Weighted Average Interest Rate

 

3.84%

 

3.68%

Maturity Date Ranges

 

2029-2061

 

2029-2061

 

As of December 31, 2024 and 2023, the Company had $240.6 million and $246.7 million, respectively, of secured tax-exempt bonds subject to third-party credit enhancement.

The historical cost, net of accumulated depreciation, of encumbered properties was $2.0 billion and $2.1 billion at December 31, 2024 and 2023, respectively.

Notes

The following tables summarize the Company’s notes activity for the years ended December 31, 2024 and 2023, respectively (amounts in thousands):

 

 

 

Notes, net as of
December 31, 2023

 

 

Proceeds

 

 

Lump sum
payoffs

 

 

Amortization
of premiums/
discounts

 

 

Amortization
of deferred
financing
costs, net (1)

 

 

Notes, net as of
December 31, 2024

 

Fixed Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured – Public

 

$

5,348,417

 

 

$

597,954

 

(2)

$

—

 

 

$

2,310

 

 

$

(1,305

)

 

$

5,947,376

 

 

(1)
Represents amortization of deferred financing costs, net of debt financing costs.
(2)
Issued $600.0 million of ten-year 4.65% unsecured notes, receiving net proceeds before underwriting fees, hedge termination costs and other expenses.

 

 

 

Notes, net as of
December 31, 2022

 

 

Proceeds

 

 

Lump sum
payoffs

 

 

Amortization
of premiums/
discounts

 

 

Amortization
of deferred
financing
costs, net (1)

 

 

Notes, net as of
December 31, 2023

 

Fixed Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured – Public

 

$

5,342,329

 

 

$

—

 

 

$

—

 

 

$

2,248

 

 

$

3,840

 

 

$

5,348,417

 

 

(1)
Represents amortization of deferred financing costs, net of debt financing costs.

The following table summarizes certain interest rate and maturity date information as of and for the years ended December 31, 2024 and 2023, respectively:

 

 

 

December 31, 2024

 

December 31, 2023

Interest Rate Ranges (ending)

 

1.85% - 7.57%

 

1.85% - 7.57%

Weighted Average Interest Rate

 

3.54%

 

3.51%

Maturity Date Ranges

 

2025-2047

 

2025-2047

 

The Company’s unsecured public notes contain certain financial and operating covenants including, among other things, maintenance of certain financial ratios. The Company was in compliance with its unsecured public debt covenants for both the years ended December 31, 2024 and 2023.

EQR and ERPOP currently have an active universal shelf registration statement for the issuance of equity and debt securities that automatically became effective upon filing with the SEC in May 2022 and expires in May 2025.

Line of Credit and Commercial Paper

The Company has a $2.5 billion unsecured revolving credit facility maturing on October 26, 2027. The Company has the ability to increase available borrowings by an additional $750.0 million by adding lenders to the facility, obtaining the agreement of existing lenders to increase their commitments or incurring one or more term loans. The interest rate on advances under the facility will generally be the Secured Overnight Financing Rate ("SOFR") plus a spread (currently 0.725%), or based on bids received from the lending group, and the Company pays an annual facility fee (currently 0.125%). Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating and other terms and conditions per the agreement. The weighted average interest rate on the revolving credit facility was 5.98% for the year ended December 31, 2024. The Company did not borrow any amounts under its revolving credit facility during the year ended December 31, 2023.

The Company has an unsecured commercial paper note program under which it may borrow up to a maximum of $1.5 billion (increased from $1.0 billion as of December 18, 2024) subject to market conditions. The notes will be sold under customary terms in the United States commercial paper note market and will rank pari passu with all of the Company’s other unsecured senior indebtedness.

The following table summarizes certain weighted average interest rate, maturity and amounts outstanding information for the commercial paper program as of and for the years ended December 31, 2024 and 2023, respectively:

 

 

 

December 31, 2024

 

December 31, 2023

Weighted Average Interest Rate (1)

 

5.25%

 

5.47%

Weighted Average Maturity (in days)

 

13

 

14

Weighted Average Amount Outstanding

 

$535.7 million

 

$276.0 million

 

(1)
The notes bear interest at various floating rates.

The Company limits its utilization of the revolving credit facility in order to maintain liquidity to support its $1.5 billion commercial paper program along with certain other obligations. The following table presents the availability on the Company’s unsecured revolving credit facility as of December 31, 2024 and 2023, respectively (amounts in thousands):

 

 

 

December 31, 2024

 

 

December 31, 2023

 

Unsecured revolving credit facility commitment

 

$

2,500,000

 

 

$

2,500,000

 

Commercial paper balance outstanding

 

 

(544,495

)

 

 

(410,000

)

Unsecured revolving credit facility balance outstanding

 

 

—

 

 

 

—

 

Other restricted amounts

 

 

(3,438

)

 

 

(3,415

)

Unsecured revolving credit facility availability

 

$

1,952,067

 

 

$

2,086,585

 

 

Other

The following table summarizes the Company’s total debt extinguishment costs recorded as additional expense for the years ended December 31, 2024, 2023 and 2022, respectively (amounts in thousands):

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

December 31, 2022

 

Write-offs of unamortized deferred financing costs

 

$

—

 

 

$

1,143

 

 

$

717

 

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

 

 

—

 

 

 

—

 

 

 

3,947

 

Total

 

$

—

 

 

$

1,143

 

 

$

4,664

 

 

The following table provides a summary of the aggregate payments of principal on all debt for each of the next five years and thereafter as of December 31, 2024 (amounts in thousands):

 

Year

 

Total

 

2025 (1)

 

$

1,002,595

 

2026

 

 

601,025

 

2027

 

 

409,800

 

2028

 

 

910,700

 

2029

 

 

899,620

 

Thereafter

 

 

4,369,312

 

Subtotal

 

 

8,193,052

 

Deferred Financing Costs and Unamortized (Discount)

 

 

(71,307

)

Total

 

$

8,121,745

 

 

(1)
Includes $544.5 million in principal outstanding on the Company's commercial paper program.