Investments in Partially Owned Entities

9 Months Ended

Sep. 30, 2025

Investments In Partially Owned Entities [Abstract]

The Company has invested in various entities with unrelated third parties which are either consolidated or accounted for under the equity method of accounting (unconsolidated).

Consolidated Variable Interest Entities (“VIEs”)

In accordance with accounting standards for consolidation of VIEs, the Company consolidates ERPOP on EQR’s financial statements. As the sole general partner of ERPOP, EQR has exclusive control of ERPOP’s day-to-day management. The limited partners are not able to exercise substantive kick-out or participating rights. As a result, ERPOP qualifies as a VIE. EQR has a controlling financial interest in ERPOP and, thus, is ERPOP’s primary beneficiary. EQR has the power to direct the activities of ERPOP that most significantly impact ERPOP’s economic performance as well as the obligation to absorb losses or the right to receive benefits from ERPOP that could potentially be significant to ERPOP.

The Company has various equity interests in certain joint ventures that have been deemed to be VIEs, and the Company is the VIEs’ primary beneficiary. As a result, the joint ventures are required to be consolidated on the Company’s financial statements. The following table summarizes the Company’s consolidated joint ventures as of September 30, 2025:


	Consolidated Joint Ventures (VIE)
	Properties/Projects	Apartment Units
Operating Properties	12	2,656
Projects Under Development (1)	1	440	(2)
Total	13	3,096

(1)

Represents separate consolidated joint ventures for the purpose of developing multifamily rental properties.

(2)

Represents the intended number of apartment units to be developed.

The following table provides consolidated assets and liabilities related to the Company's VIEs as of September 30, 2025 and December 31, 2024 (amounts in thousands):


	September 30, 2025		December 31, 2024
Consolidated Assets	$	579,395	$	528,076
Consolidated Liabilities	$	55,570	$	47,137

Investments in Unconsolidated Entities

The Company has various equity interests in certain joint ventures that are unconsolidated and accounted for using the equity method of accounting. Most of these have been deemed to be VIEs and the Company is not the VIEs' primary beneficiary. The remaining have been deemed not to be VIEs and the Company does not have a controlling voting interest.

The following table summarizes the Company’s investments in unconsolidated entities as of September 30, 2025 and December 31, 2024 (amounts in thousands except for ownership percentage):


	September 30, 2025			December 31, 2024			Ownership Percentage
Investments in Unconsolidated Entities:
Various Real Estate Holdings (VIE)	$	34,039		$	34,510		Varies
Development and Lease-Up Projects and Land Held for Development (VIE)		335,828			323,998		62% - 95% (1)
Real Estate Technology Funds/Companies (VIE)		30,473			28,276		Varies
Other		(263	)		(253	)	Varies
Investments in Unconsolidated Entities	$	400,077		$	386,531

(1)

In certain instances, the joint venture agreements contain provisions for promoted interests in favor of our joint venture partner. If the terms of the promoted interest are attained, then our share of the proceeds from a sale or other capital event of the unconsolidated entity may be less than the indicated ownership percentage.

The following table summarizes the Company’s unconsolidated joint ventures that were deemed to be VIEs as of September 30, 2025:


	Unconsolidated Joint Ventures (VIE)
	Properties/Projects/Entities	Apartment Units
Operating Properties	3	1,169
Development Lease-Up Projects (1)	2	543
Real Estate Holdings (2)	3	—
Projects Under Development (3)	2	639	(5)
Projects Held for Development (4)	2	526	(5)
Total	12	2,877

(1)

The land parcel under one of these properties is subject to a long-term ground lease.

(2)

Represents entities that hold various real estate investments.

(3)

Represents separate unconsolidated joint ventures for the purpose of developing multifamily rental properties.

(4)

Represents separate unconsolidated joint ventures for the purpose of developing multifamily rental properties that have not yet started.

(5)

Represents the intended number of apartment units to be developed.

During the nine months ended September 30, 2025, the Company repaid $102.3 million of outstanding principal balances on the third-party construction mortgages for two of its unconsolidated development joint ventures in which it is a 75% owner. Concurrently, the Company advanced the funds to the joint ventures as replacement loans. The loans may be drawn up to a maximum of $104.1 million, bear interest at either SOFR+2.0% or SOFR+2.2%, mature in July 2027 and are secured by the underlying properties. As of September 30, 2025, the loans had an amortized cost basis (which includes accrued interest) of $102.8 million, and the fair values approximate the carrying values. The Company includes mortgage and interest receivable within other assets on the consolidated balance sheets.

During the nine months ended September 30, 2025, the Company acquired its joint venture partner's 10% interest in a previously unconsolidated 270-unit apartment property for approximately $3.6 million in cash (net of cash acquired) and also contributed $50.5 million for the joint venture to repay the third-party construction loan encumbering the property. The property is now wholly owned.