Second Quarter 2026 Results Table o f Contents
Earnings Release 1 - 7 Consolidated Statements of Operations 8 Consolidated Statements of Funds From Operations and Normalized 9 Funds From Operations Consolidated Balance Sheets 10 Portfolio Summary 11 Portfolio Rollforward 12 Same Store Results 13 - 18 Debt Summary 19 - 21 Capital Structure 22 Common Share and Unit Weighted Average Amounts 23 Outstanding Partially Owned Properties 24 Development and Lease-Up Projects 25 Residential Capital Expenditures to Real Estate 26 Normalized EBITDAre Reconciliations 27 Adjustments from FFO to Normalized FFO 28 Additional Reconciliations and Definitions of Non-GAAP 29 - 34 Financial Measures and Other Terms
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 22, 2026 Equity Residential Reports Second Quarter 2026 Results Raises Full Year Operating Guidance Chicago, IL – July 22, 2026 - Equity Residential (NYSE: EQR) today reported results for the quarter and six months ended June 30, 2026 and has posted a Q2 2026 Management Presentation to its website as referenced below. Second Quarter 2026 Results All per share results are reported as available to common shares/units on a diluted basis.
Recent Highlights • On May 21, 2026, the Company and AvalonBay Communities, Inc. (NYSE: AVB) ("AvalonBay") announced a definitive agreement to combine in an all- stock merger of equals, creating one of the country's leading real estate companies with the differentiated scale, capabilities, and balance sheet strength to expand margins, accelerate growth, and redefine leadership in rental housing. The combined company will have a pro forma equity market capitalization of approximately $53 billion and a total enterprise value of approximately $71 billion, with more than 180,000 rental apartments. • For the second quarter of 2026 compared to the second quarter of 2025, same store revenues increased 1.9%, same store expenses increased 3.0% and same store Net Operating Income (NOI) increased 1.4%. Same store revenue growth is being driven by strong Physical Occupancy and better than anticipated Renewal Rate Achieved. • The Company raised the midpoint of its guidance range for same store revenues and NOI. The same store revenue improvement is primarily being driven by strong momentum in the San Francisco market along with improvements in Bad Debt, Net across the portfolio. These midpoints reflect what Equity Residential would expect to achieve if it operated as a standalone entity for the full year of 2026. • During the second quarter of 2026, the Company sold two properties, one in the Los Angeles market and one in the San Francisco market, consisting of 515 apartment units, for an aggregate sale price of approximately $164.0 million.
Table of Contents “We are pleased to increase our same store revenue and NOI annual guidance as a result of a solid demand environment characterized by occupancy and resident retention that remain at historically high levels. An increasingly supportive job market combined with declining levels of new supply in most of our markets sets the combined company up for great success," said Mark J. Parrell, Equity Residential’s President and CEO. “We are proud of the legacy we have created at Equity Residential and very excited about what the future holds for the combined company.” Full Year 2026 Guidance The Company has provided guidance for its full year 2026 same store operating performance as listed below:
Revised Previous Change at Midpoint Same Store (includes Residential and Non-Residential): Physical Occupancy 96.3% 96.4% -0.1% Revenue change 2.1% to 2.7% 1.2% to 3.2% 0.2% Expense change 3.0% to 4.0% 3.0% to 4.0% 0.0% NOI change 1.5% to 2.1% 0.5% to 2.5% 0.3%
The above guidance is solely with respect to the Company's existing Same Store Properties, reflects what we would expect to achieve if we operated as a standalone entity for the full year of 2026. The Company has withdrawn its EPS, FFO per share and Normalized FFO per share guidance (and related components of these measures such as interest expense) due to the pendency of the merger. The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 29 through 34 of this release. Results Per Share The changes in EPS for the quarter and six months ended June 30, 2026 compared to the same periods of 2025 are due primarily to lower property sale gains, the various adjustment items listed on page 28 of this release and the items described below. The per share changes in FFO for the quarter and six months ended June 30, 2026 compared to the same periods of 2025 are due primarily to the various adjustment items listed on page 28 of this release and the items described below. The per share changes in Normalized FFO are due primarily to:
(1) Corporate overhead includes property management and general administrative expenses.
Table of Contents Same Store Results The following table shows the total same store results for the periods presented (includes Residential and Non-Residential).
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 Second Quarter Quarter June YTD 2026 vs. 2026 vs. 2026 vs. Second First June YTD Quarter Quarter 2025 2025 2026 % Change % Change % Change Same Store Residen… Revenue… compara… period Lease 1.8 % 0.8 % 1.7 % rates Leasing (0.1 %) 0.0 % (0.1 %) Concess… Vacancy gain (0.3 %) (0.3 %) (0.1 %) (loss) Bad Debt, 0.2 % 0.2 % 0.2 % Net Other 0.5 % 0.3 % 0.5 % (1) Same Store Residen… 2.1 % 1.0 % 2.2 % Revenue… current period
(1) Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items. See page 14 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. Residential Same Store Operating Statistics The following table includes select operating metrics for Residential Same Store Properties (for 78,385 same store apartment units):
(1) July 2026 results are preliminary as of July 15th. “Positive trends around both supply and demand continue to drive our operating performance during the primary leasing season and we continue to observe growing rents as we work our way through the summer,” said Michael Manelis, Equity Residential’s Chief Operating Officer. “We are well positioned to benefit from this demand as we grow our operating platform at the combined company and harness the opportunities that will come from our focus on innovation and serving our customer.”
Investments Activity The Company did not acquire any properties during the second quarter of 2026.
During the second quarter of 2026, the Company sold two properties, one in the Los Angeles market and one in the San Francisco market, consisting of 515 apartment units, for an aggregate sale price of approximately $164.0 million at a weighted average Disposition Yield of 5.3%. The operating properties sold during the quarter ended June 30, 2026 have an average age of 30 years.
During the second quarter of 2026, the Company completed a consolidated partially owned development project located in suburban Boston, consisting of 440 apartment units, for a total cost of approximately $232.2 million. During the second quarter of 2026, the Company also completed one unconsolidated partially owned development project in suburban Seattle, consisting of 369 apartment units, for a total cost of approximately $185.3 million.
On May 21, 2026, the Company and AvalonBay announced a definitive agreement to combine in an all-stock merger of equals, creating one of the country's leading real estate companies with the differentiated scale, capabilities, and balance sheet strength to expand margins, accelerate growth, and redefine leadership in rental housing. The combined company will have a pro forma equity market capitalization of approximately $53 billion and a total enterprise value of approximately $71 billion, with more than 180,000 rental apartments (data as of July 17, 2026).
On June 8, 2026, the combined company announced the expected executive leadership team, led by Benjamin W. Schall, who will serve as the President and CEO of the combined company.
Under the terms of the merger agreement, the combined company's board will consist of 14 trustees, including seven members of the current Equity Residential board and seven members of the current AvalonBay board. The following members of the Equity Residential board will serve on the combined company board as of the closing of the merger: David J. Neithercut, Angela M. Aman, Chris Carr, Mary Kay Haben, Ann C. Hoff, Nina P. Jones, and Stephen E. Sterrett. The following members of the AvalonBay board will serve on the combined company board as of the closing of the merger: Timothy J. Naughton, Benjamin W. Schall, Terry S. Brown, Conor C. Flynn, Christopher B. Howard, Charles E. Mueller Jr., and Susan Swanezy. Pursuant to the merger agreement, Mr. Sterrett will be appointed to serve as the Chairman of the combined company board.
On August 12, 2026, the Company will hold its special meeting of shareholders related to the proposed merger and AvalonBay will hold its special meeting of stockholders. For further information, please refer to the definitive joint proxy statement/prospectus filed by each of the Company and AvalonBay with the SEC on July 13, 2026.
Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, owns and manages 312 rental properties consisting of 85,520 apartment units in dynamic metro areas across the U.S. with a primary concentration in major coastal markets, diversified by a targeted presence in the high-growth metro areas of Atlanta, Dallas/Austin and Denver. For more information on Equity Residential, please visit our website atwww.equityapartments.com.
This communication contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended, which are based on current expectations, estimates and projections about the industry and markets in which Equity Residential and AvalonBay operate, as well as beliefs and assumptions of Equity Residential and AvalonBay. Words such as “anticipate,” “become,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “possible,” “predict,” “project,” “target,” “seek,” “shall,” “should,” “will,” or “would,” including variations of such words and similar expressions, are intended to identify forward-looking statements. All statements that address operating performance, events or developments that Equity Residential or AvalonBay expects or anticipates will occur in the future are forward-looking statements, including statements relating to any possible transaction between Equity Residential and AvalonBay, multifamily market conditions, development, redevelopment, acquisition or disposition activity, general conditions in the geographic areas where Equity Residential and AvalonBay operate and Equity Residential’s and AvalonBay’s respective debt, capital structure and financial position. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other factors that are difficult to predict and may cause the actual results to differ materially from future results expressed or implied by such forward-looking statements.
Table of Contents Important factors, risks and uncertainties that could cause actual results to differ materially from such plans, estimates or expectations include but are not limited to: (i) the parties’ ability to complete the proposed transaction on the proposed terms or on the anticipated timeline, or at all, including risks and uncertainties related to Equity Residential’s and AvalonBay’s ability to obtain the required respective shareholder or stockholder, as applicable, approval, and the parties’ ability to satisfy the other conditions to consummating the proposed transaction; (ii) the inability to realize the anticipated benefits of the proposed transaction, including as a result of delay in completing the proposed transaction; (iii) the risk that Equity Residential’s and AvalonBay’s businesses will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; (iv) significant transaction costs and/or unknown or inestimable liabilities; (v) potential litigation relating to the proposed transaction that could be instituted against Equity Residential, AvalonBay or their trustees, directors, managers or officers, including resulting expense or delay and the effects of any outcomes related thereto; (vi) the risk that disruptions from the proposed transaction, including diverting the attention of Equity Residential and AvalonBay management from ongoing business operations, will harm Equity Residential’s and AvalonBay’s businesses during the pendency of the proposed transaction or otherwise; (vii) certain restrictions during the pendency of the business combination that may impact Equity Residential’s and AvalonBay’s ability to pursue certain business opportunities or strategic transactions; (viii) the possibility that the business combination may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (ix) the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement, including in circumstances requiring Equity Residential or AvalonBay to pay a termination fee; (x) the effect of the announcement of the proposed transaction on the ability of Equity Residential and AvalonBay to operate their respective businesses and retain and hire key personnel, and to maintain favorable business relationships; (xi) risks related to the market value of Equity Residential common shares to be issued in the proposed transaction; (xii) other risks related to the completion of the proposed transaction and actions related thereto; (xiii) potential business uncertainty, including changes to existing business relationships, during the pendency of the business combination or otherwise that could affect Equity Residential’s or AvalonBay’s financial performance; (xiv) other risks related to the completion of the proposed transaction and actions related thereto; (xv) legislative, regulatory and economic developments, including the level of new multifamily communities construction and development, government regulations and competition; (xvi) unpredictability and severity of local, regional, national and international economic, political and catastrophic climates, conditions and events, including but not limited to acts of terrorism, outbreaks of war or hostilities or pandemics, as well as management’s response to any of the aforementioned factors; (xvii) changes in global financial markets, interest rates and foreign currency exchange rates; (xviii) increased or unanticipated competition affecting Equity Residential’s and AvalonBay’s properties; (xix) risks associated with acquisitions, dispositions, development and redevelopment of properties; (xx) increased costs of labor and construction material; (xxi) maintenance of real estate investment trust status, tax structuring and changes in income tax laws and rates; (xxii) environmental uncertainties, including risks of natural disasters; (xxiii) those risks and uncertainties set forth in Equity Residential’s and AvalonBay’s Annual Reports on Form 10-K for the year ended December 31, 2025 under the headings “Forward-Looking Statements” and “Risk Factors,” as such risk factors may be amended, supplemented or superseded from time to time by other reports filed by Equity Residential or AvalonBay, as the case may be, with the Securities and Exchange Commission (the “SEC”) from time to time, which are available via the SEC’s website at www.sec.gov; and (xxiv) those risks that are described in the Registration Statement and Definitive Joint Proxy Statement/Prospectus (each as defined below) that have been filed with the SEC in connection with the proposed transaction and are available from the sources indicated below. There can be no assurance that the proposed transaction will be completed, or if it is completed, that it will close within the anticipated time period. These factors should not be construed as exhaustive and should be read in conjunction with the other forward-looking statements. Forward-looking statements relate only to events as of the date on which the statements are made. Neither Equity Residential nor AvalonBay undertakes any obligation to publicly update or review any forward-looking statement except as required by law, whether as a result of new information, future developments or otherwise. If one or more of these or other risks or uncertainties materialize, or if Equity Residential’s and AvalonBay’s underlying assumptions prove to be incorrect, Equity Residential’s, AvalonBay’s and the combined company’s actual results may vary materially from what Equity Residential or AvalonBay may have expressed or implied by these forward-looking statements. Equity Residential and AvalonBay caution not to place undue reliance on any of Equity Residential’s or AvalonBay’s forward-looking statements. Furthermore, new risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect Equity Residential or AvalonBay.
This communication is for informational purposes only and is not intended to, and shall not, constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any offer, solicitation or sale of securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act.
In connection with the proposed transaction between Equity Residential and AvalonBay, Equity Residential has filed with the SEC a registration statement on Form S-4 (File No. 333-297128) (the “Registration Statement”) which includes the joint proxy statement of Equity Residential and AvalonBay that also constitutes a prospectus of Equity Residential. The Registration Statement was declared effective on July 13, 2026, and each of Equity Residential and AvalonBay commenced mailing of the definitive joint proxy statement of AvalonBay and Equity Residential that also constitutes a prospectus of Equity Residential (the “Definitive Joint Proxy Statement/Prospectus”) to their respective shareholders or stockholders, as applicable, on or about July 13, 2026. Each of Equity Residential and AvalonBay may also file other relevant documents with the SEC regarding the proposed transaction. This communication is not a substitute for the Registration Statement, Definitive Joint Proxy Statement/Prospectus or any other document that Equity Residential or AvalonBay (as applicable) have filed or may file with the SEC in connection with the proposed transaction. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS OF EQUITY RESIDENTIAL AND AVALONBAY ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THE REGISTRATION STATEMENT, THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS WHEN THEY BECOME AVAILABLE WITH THE SEC BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders may obtain free copies of the Registration Statement and the Definitive Joint Proxy Statement/Prospectus and other documents filed with the SEC by Equity Residential and AvalonBay, which contain important information, through the website maintained by the SEC at www.sec.gov. The documents filed by Equity Residential with the SEC may be obtained free of charge by accessing “Filings – SEC Filings” in the “Investor” section of Equity Residential’s website at www.equityapartments.com, by writing to Equity Residential – Investor Relations, Two North Riverside Plaza, Suite 500, Chicago, Illinois 60606, by telephone at 1-888-879-6356 or by email at investorrelations@eqr.com. The documents filed by AvalonBay with the SEC may be obtained free of charge by accessing the “Investors” section of AvalonBay’s website at www.avalonbay.com or by writing to AvalonBay, 4040 Wilson Blvd., Suite 1000, Arlington, Virginia 22203, Attention: Corporate Secretary (Legal Department) or by email at investor_relations@avalonbay.com.
Equity Residential, AvalonBay, and certain of their respective trustees, directors and executive officers may be deemed to be participants in the solicitation of proxies from Equity Residential’s and AvalonBay’s shareholders or stockholders, as applicable, in respect of the proposed transaction. Information about the directors and executive officers of AvalonBay, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in AvalonBay’s proxy statement for its 2026 Annual Meeting of Stockholders under the headings “Director Nominees,” “Transactions with Related Persons, Promoters and Certain Control Persons,” “Director Compensation,” “Director Compensation Table,” “Compensation Discussion and Analysis,” “Executive Compensation Tables” and “Officers, Stock Ownership and Other Information,” which was filed with the SEC onApril 6, 2026, and in AvalonBay’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which was filed with the SEC onFebruary 27, 2026. Information about the trustees and executive officers of Equity Residential, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in Equity Residential’s proxy statement for its 2026 Annual Meeting of Shareholders under the headings “Biographical Information and Qualifications of Trustees,” “Biographical Information of Executives,” “Common Share Ownership of Trustees and Executives,” “Compensation Discussion and Analysis,” “Executive Compensation” and “Trustee Compensation,” which was filed with the SEC onApril 14, 2026, and in Equity Residential’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which was filed with the SEC onFebruary 13, 2026. To the extent holdings of Equity Residential’s securities by its trustees or executive officers have changed since the amounts set forth in Equity Residential’s definitive proxy statement for its 2026 Annual Meeting of Shareholders or the holdings of AvalonBay’s securities by its directors or executive officers have changed since the amounts set forth in AvalonBay’s definitive proxy statement for its 2026 Annual Meeting of Stockholders, such changes have been or will be reflected on an Initial Statement of Beneficial Ownership of Securities on Form 3, Statement of Changes in Beneficial Ownership on Form 4, or Annual Statement of Changes in Beneficial Ownership on Form 5, in each case filed with the SEC and available on the SEC’s website at www.sec.gov. Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, are contained in the Registration Statement, the Definitive Joint Proxy Statement/Prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction when such materials become available. Investors and security holders should read the Registration Statement and the Definitive Joint Proxy Statement/Prospectus carefully before making any voting or investment decisions. Investors may obtain free copies of these documents from Equity Residential or AvalonBay using the sources indicated above.
Table of Contents In light of the Company's previously announced merger of equals with AvalonBay, the Company will not hold a conference call to discuss its second quarter 2026 financial results. The Company is providing a Management Presentation in the Investor section of the Company’s website atwww.equityapartments.com.
Table of Contents Equity Residential Consolidated Statem ents of Operations (Amounts in thousands except per share data) (Unaudited)
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)
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.
Table of Contents Equity Residential Consolidated B alance Sheets (Amounts in thousands except for share amounts) (Unaudited)
June 30, December 31, ASSETS 2026 2025 ────────────────────────────────────────────────────────────────────────────── Land $ 5,516,087 $ 5,563,407 Depreciable 24,808,104 24,705,540 property Projects under 58,312 100,561 development Land held for 58,318 86,341 development Investment in 30,440,821 30,455,849 real estate Accumulated (11,453,919 ) (11,016,900 ) depreciation Investment in 18,986,902 19,438,949 real estate, net Investments in unconsolidated 323,342 325,939 entities1 Cash and cash 36,405 55,904 equivalents Restricted 106,975 102,950 deposits Right-of-use 450,474 454,916 assets Other assets 371,479 367,365 Total assets $ 20,275,577 $ 20,746,023 LIABILITIES AND EQUITY Liabilities: Mortgage notes $ 1,591,821 $ 1,589,904 payable, net Notes, net 6,002,002 5,998,458 Line of credit and commercial 667,846 586,648 paper Accounts payable and accrued 120,197 109,165 expenses Accrued interest 73,450 73,860 payable Lease 303,831 304,575 liabilities Other 277,286 324,616 liabilities Security 83,076 82,155 deposits Distributions 269,489 267,508 payable Total 9,388,998 9,336,889 liabilities Commitments and contingencies Redeemable Noncontrolling Interests – 189,941 176,289 Operating Partnership Equity: Shareholders' equity: Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized; 17,155 17,155 343,100 shares issued and outstanding as of June 30, 2026 and December 31, 2025 Common Shares of beneficial interest, $0.01 par value; 1,000,000,000 shares authorized; 374,893,890 shares issued 3,749 3,778 and outstanding as of June 30, 2026 and 377,806,173 shares issued and outstanding as of December 31, 2025 Paid in capital 9,840,190 9,824,460 Retained 651,138 1,193,931 earnings Accumulated other comprehensive 2,748 2,175 income (loss) Total shareholders’ 10,514,980 11,041,499 equity Noncontrolling Interests: Operating 182,816 192,135 Partnership Partially Owned (1,158 ) (789 ) Properties Total Noncontrolling 181,658 191,346 Interests Total equity 10,696,638 11,232,845 Total liabilities and $ 20,275,577 $ 20,746,023 equity
1 Includes $257.0 million and $261.4 million in unconsolidated development and operating projects as of June 30, 2026 and December 31, 2025, respectively. See Partially Owned Properties and/or Development and Lease-Up Projects for additional detail on unconsolidated projects.
Properties Apartment Units Wholly Owned Properties 295 81,039 Partially Owned Properties – 13 3,096 Consolidated Partially Owned Properties – 4 1,385 Unconsolidated 312 85,520
Note: Projects under development are not included in the Portfolio Summary until construction has been completed.
Second Quarter 2026 vs. Second Quarter 2025 Same Store Results/Statistics Including 78,612 Same Store Apartment Units (includes Residential and Non- Residential) ($ in thousands except for Average Rental Rate)
Second Quarter 2026 vs. First Quarter 2026 Same Store Results/Statistics Including 82,242 Same Store Apartment Units (includes Residential and Non- Residential) ($ in thousands except for Average Rental Rate)
June YTD 2026 vs. June YTD 2025 Same Store Results/Statistics Including 78,385 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands except for Average Rental Rate)
(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 78,385 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands)
Equity ResidentialSecond Quarter 2026 vs. Second Quarter 2025Same Store Residential Results/Statistics by Market
Note: The above table reflects Residential same store results only. Residential operations account for more than 96.0% of total revenues for the six months ended June 30, 2026.
Equity ResidentialSecond Quarter 2026 vs. First Quarter 2026Same Store Residential Results/Statistics by Market
Note: The above table reflects Residential same store results only. Residential operations account for more than 96.0% of total revenues for the six months ended June 30, 2026.
Equity ResidentialJune YTD 2026 vs. June YTD 2025Same Store Residential Results/Statistics by Market
Note: The above table reflects Residential same store results only. Residential operations account for more than 96.0% of total revenues for the six months ended June 30, 2026.
Second Quarter 2026 vs. Second Quarter 2025 Total Same Store Operating Expenses Including 78,612 Same Store Apartment Units (includes Residential and Non- Residential) ($ in thousands)
June YTD 2026 vs. June YTD 2025 Total Same Store Operating Expenses Including 78,385 Same Store Apartment Units (includes Residential and Non-Residential) ($ in thousands)
(1) The year-over-year changes were primarily driven by the following factors: Real estate taxes – Increase due to escalation in rates and assessed values. On- site payroll – Sub-inflationary growth due to the impact of various innovation initiatives and lower employee benefit costs. Utilities – Increase primarily driven by higher costs for trash removal and higher commodity prices, particularly impacting electricity and gas. Repairs and maintenance – Increase primarily driven by costs associated with the implementation of various resident technology initiatives (including bulk Wi-Fi programs), which is more than offset by a corresponding increase in same store revenues. Insurance – Increase primarily driven by higher general liability premiums and property casualty losses, partially offset by lower property premiums. Leasing and advertising – Increase primarily driven by higher interactive marketing/advertising costs, processing fees and certain one-time broker fee costs related to Non-Residential leasing activity. (2) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
(1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. (2) At June 30, 2026, the weighted average maturity of commercial paper outstanding was 3 days. The weighted average amount outstanding for the six months ended June 30, 2026 was approximately $718.3 million. Note: The Company capitalized interest of approximately $4.7 million and $6.7 million during the six months ended June 30, 2026 and 2025, respectively. The Company capitalized interest of approximately $2.1 million and $2.8 million during the quarters ended June 30, 2026 and 2025, respectively.
(1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. (2) Includes $668.0 million in principal outstanding on the Company's Commercial Paper Program.
June 30, March 31, 2026 2026 Debt to Adjusted Total Assets (not to 27.7% 27.9% exceed 60%) Secured Debt to Adjusted Total Assets 6.1% 6.1% (not to exceed 40%) Consolidated Income Available for Debt Service to Maximum Annual Service Charges 5.60 5.60 (must be at least 1.5 to 1) Total Unencumbered Assets to Unsecured Debt 470.6% 466.1% (must be at least 125%)
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, 2026 2026 Total debt to Normalized EBITDAre 4.32x 4.38x Net debt to Normalized EBITDAre 4.28x 4.35x Unencumbered NOI as a % of total NOI 90.0% 90.1%
Capital Structure as o f June 30, 2026 (Amounts in thousands except for share/unit and per share amounts)
Perpetual Preferred Equity as of June 30, 2026 (Amounts in thousands except for share and per share amounts)
Equity ResidentialPartially Owned Properties as of June 30, 2026(Amounts in thousands except for project/property and apartment unit amounts) ──────────────────────────────────────────────────────────────────────────────
(1) The Company is currently developing one property, which is expected to add 270 apartment units upon completion. (2) See Development and Lease-Up Projects for more information. Note: Partially owned consolidated and unconsolidated amounts are presented at 100% of the project/property. This schedule only includes those projects/properties that are partially owned at June 30, 2026.
Equity ResidentialDevelopment and Lease-Up Projects as of June 30, 2026(Amounts in thousands except for project and apartment unit amounts) ──────────────────────────────────────────────────────────────────────────────
NOI CONTRIBUTION FROM DEVELOPMENT Total Budgeted June YTD 26 PROJECTS Capital Cost NOI ────────────────────────────────────────────────────────────────────────────── Projects Under Development - $ 174,461 $ — Consolidated Projects Completed Not Stabilized - 232,172 1,537 Consolidated Projects Under Development - 121,918 509 Unconsolidated Projects Completed Not Stabilized - 185,282 (173 ) Unconsolidated $ 713,833 $ 1,873
(1) All unconsolidated projects are being partially funded with third party, project-specific construction loans, none of which are recourse to the Company. (2) Modera Bridle Trails is considered complete because all certificates of occupancy have been received. Though Modera South Shore has progressed further with development and lease-up, not all certificates of occupancy have yet been received for that project and thus it is still considered under development.
Equity ResidentialResidential Capital Expenditures to Real Estate For the Six Months Ended June 30, 2026(Amounts in thousands except for apartment unit and per apartment unit amounts) ──────────────────────────────────────────────────────────────────────────────
(1) Renovation Expenditures on 1,393 same store apartment units for the six months ended June 30, 2026 approximated $30,000 per apartment unit renovated. (2) Includes sustainability, property-level technology and Accessory Dwelling Units (ADU) spend. (3) Includes expenditures for one property that has 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 renovation is expected to continue through the fourth quarter of 2026 and is being paid for, in part, by funds from a replacement reserve account required by the ground lease arrangement. (4) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. Note: Non-Residential Capital Expenditures to Real Estate were approximately $6.0 million for both Same Store Properties and Total Consolidated Properties.
(1) Insurance/litigation settlement or reserve expense includes reserves relating to various legal proceedings being defended by the Company and other insurance-related matters. Note: EBITDA, EBITDAre and Normalized EBITDAre do not include any adjustments for the Company’s share of partially owned unconsolidated entities due to the immaterial size of the Company’s partially owned unconsolidated portfolio.
Equity Residential Adjustments from FFO to Normalized FFO (Amounts in thousands)
(1) Insurance/litigation settlement or reserve expense includes reserves relating to various legal proceedings being defended by the Company and other insurance-related matters. 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.
Equity ResidentialAdditional 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 3.0% 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 : Accessory Dwelling Units (ADU) – Includes costs to convert existing underutilized spaces of our properties into new apartment units. NOI-Enhancing – Primarily includes Renovation Expenditures as well as sustainability, property-level technology and ADU expenditures that are intended to increase revenues or decrease expenses. Recurring – Capital expenditures necessary to help preserve the value of and maintain the functionality of our apartment properties. Renovation Expenditures – Apartment unit renovation costs (primarily kitchens and baths) designed to reposition these units for higher rental levels in their respective markets. Debt Balances: Commercial Paper Program – The Company may borrow up to a maximum of $1.5 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 December 3, 2030. 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 $1.5 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, 2026 ───────────────────────────────────────────────────────────────────── Unsecured revolving credit facility $ 2,500,000 commitment Commercial paper balance outstanding (668,000 ) Unsecured revolving credit facility — balance outstanding Other restricted amounts (3,464 ) Unsecured revolving credit facility $ 1,828,536 availability
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.
Equity ResidentialAdditional 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 3.0% 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 3.0% 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 $250-$600 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):
Equity ResidentialAdditional 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)
Funds From Operations (“FFO”)–Nareit defines FFO (December 2018White 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 andamortization related to real estate. Adjustments for partially owned consolidated and unconsolidated partnershipsand 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 expectedoperating 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 FFObegins with FFO and excludes:
the impact of any expenses relating to non-operating real estate asset impairment;
gains and losses from early debt extinguishment and preferred share redemptions;
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.
Equity ResidentialAdditional 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 .
(1) See Adjustments from FFO to Normalized FFO for additional detail. 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% Physical 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 net 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 and further allocated between Residential same store and Non-Residential same store results (see Same Store Results ):
Equity ResidentialAdditional 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 2025 and 2026, plus any properties in lease-up and not stabilized as of January 1, 2025. Unless otherwise noted, includes both Residential and Non-Residential operations for these properties. 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 : Insurance – Includes third-party insurance premiums, broker fees and other insurance-related procurement fees along with an allocation of estimated uninsured losses. 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.
Equity ResidentialAdditional 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)
Same Store Properties– For annual comparisons, primarily includes all properties acquired or completed that are stabilized prior to January 1, 2025, less properties subsequently sold. Properties are included in Same Store when they are stabilized for all of the current and comparable periods presented. Unless otherwise noted, includes both Residential and Non-Residential operations for these properties.
Same Store Residential Revenues–Revenues from our Residential Same Store Properties only 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 inSame Store Resultsand 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 2026 NOI for stabilized properties and projected annual NOI at stabilization (defined as having achieved 90% Physical 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.
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. Retention rate is the opposite of Turnover.
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.
Weighted Average Coupons– Contractual interest rate for each debt instrument weighted by principal balances as of June 30, 2026. 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, 2026 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.
Full text with the tables
Second Quarter 2026 Results Table o f Contents
Earnings Release 1 - 7
Consolidated Statements of Operations 8
Consolidated Statements of Funds From Operations and Normalized 9
Funds From Operations
Consolidated Balance Sheets 10
Portfolio Summary 11
Portfolio Rollforward 12
Same Store Results 13 - 18
Debt Summary 19 - 21
Capital Structure 22
Common Share and Unit Weighted Average Amounts 23
Outstanding
Partially Owned Properties 24
Development and Lease-Up Projects 25
Residential Capital Expenditures to Real Estate 26
Normalized EBITDAre Reconciliations 27
Adjustments from FFO to Normalized FFO 28
Additional Reconciliations and Definitions of Non-GAAP 29 - 34
Financial Measures and Other Terms
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 22, 2026 Equity Residential Reports
Second Quarter 2026 Results Raises Full Year Operating Guidance Chicago, IL –
July 22, 2026 - Equity Residential (NYSE: EQR) today reported results for the
quarter and six months ended June 30, 2026 and has posted a Q2 2026 Management
Presentation to its website as referenced below. Second Quarter 2026 Results All
per share results are reported as available to common shares/units on a diluted
basis.
Quarter
Ended June
30, 2026 2025 $ Change % Change
──────────────────────────────────────────────────────────────────────────────
Earnings
Per Share $ 0.30 $ 0.50 $ (0.20 ) (40.0 %)
(EPS)
Funds
from
Operatio… $ 1.00 $ 0.98 $ 0.02 2.0 %
(FFO) per
share
Normaliz…
FFO $ 1.02 $ 0.99 $ 0.03 3.0 %
(NFFO)
per share
Six Months
Ended June
30, 2026 2025 $ Change % Change
──────────────────────────────────────────────────────────────────────────────
Earnings
Per Share $ 0.54 $ 1.18 $ (0.64 ) (54.2 %)
(EPS)
Funds
from
Operatio… $ 1.88 $ 1.92 $ (0.04 ) (2.1 %)
(FFO) per
share
Normaliz…
FFO $ 2.01 $ 1.94 $ 0.07 3.6 %
(NFFO)
per share
Recent Highlights • On May 21, 2026, the Company and AvalonBay Communities, Inc.
(NYSE: AVB) ("AvalonBay") announced a definitive agreement to combine in an all-
stock merger of equals, creating one of the country's leading real estate
companies with the differentiated scale, capabilities, and balance sheet
strength to expand margins, accelerate growth, and redefine leadership in rental
housing. The combined company will have a pro forma equity market capitalization
of approximately $53 billion and a total enterprise value of approximately $71
billion, with more than 180,000 rental apartments. • For the second quarter of
2026 compared to the second quarter of 2025, same store revenues increased 1.9%,
same store expenses increased 3.0% and same store Net Operating Income (NOI)
increased 1.4%. Same store revenue growth is being driven by strong Physical
Occupancy and better than anticipated Renewal Rate Achieved. • The Company
raised the midpoint of its guidance range for same store revenues and NOI. The
same store revenue improvement is primarily being driven by strong momentum in
the San Francisco market along with improvements in Bad Debt, Net across the
portfolio. These midpoints reflect what Equity Residential would expect to
achieve if it operated as a standalone entity for the full year of 2026. •
During the second quarter of 2026, the Company sold two properties, one in the
Los Angeles market and one in the San Francisco market, consisting of 515
apartment units, for an aggregate sale price of approximately $164.0 million.
1
Table of Contents
“We are pleased to increase our same store revenue and NOI annual guidance as a
result of a solid demand environment characterized by occupancy and resident
retention that remain at historically high levels. An increasingly supportive
job market combined with declining levels of new supply in most of our markets
sets the combined company up for great success," said Mark J. Parrell, Equity
Residential’s President and CEO. “We are proud of the legacy we have created at
Equity Residential and very excited about what the future holds for the combined
company.” Full Year 2026 Guidance The Company has provided guidance for its full
year 2026 same store operating performance as listed below:
Revised Previous Change at Midpoint
Same Store (includes
Residential and
Non-Residential):
Physical Occupancy 96.3% 96.4% -0.1%
Revenue change 2.1% to 2.7% 1.2% to 3.2% 0.2%
Expense change 3.0% to 4.0% 3.0% to 4.0% 0.0%
NOI change 1.5% to 2.1% 0.5% to 2.5% 0.3%
The above guidance is solely with respect to the Company's existing Same Store
Properties, reflects what we would expect to achieve if we operated as a
standalone entity for the full year of 2026. The Company has withdrawn its EPS,
FFO per share and Normalized FFO per share guidance (and related components of
these measures such as interest expense) due to the pendency of the merger. The
Company has a glossary of defined terms and related reconciliations of Non-GAAP
financial measures on pages 29 through 34 of this release. Results Per Share The
changes in EPS for the quarter and six months ended June 30, 2026 compared to
the same periods of 2025 are due primarily to lower property sale gains, the
various adjustment items listed on page 28 of this release and the items
described below. The per share changes in FFO for the quarter and six months
ended June 30, 2026 compared to the same periods of 2025 are due primarily to
the various adjustment items listed on page 28 of this release and the items
described below. The per share changes in Normalized FFO are due primarily to:
Second Quarter
2026 vs. June YTD 2026
Positive/(Nega… Second Quarter vs.
ive) Impact 2025 June YTD 2025
──────────────────────────────────────────────────────────────────────────────
Residential
same store $ 0.02 $ 0.04
NOI
Lease-Up NOI 0.01 0.03
2026 and 2025
transaction
activity (0.01 ) (0.03 )
impact on
NOI, net
Interest (0.01 ) (0.03 )
expense, net
Other items
(primarily
corporate
overhead and 0.02 0.06
share
repurchase
impacts) (1)
Net $ 0.03 $ 0.07
(1) Corporate overhead includes property management and general administrative
expenses.
2
Table of Contents
Same Store Results The following table shows the total same store results for
the periods presented (includes Residential and Non-Residential).
Second Quarter Second Quarter June YTD 2026
2026 vs. 2026 vs. vs.
Second Quarter First Quarter June YTD 2025
2025 2026
Apartment Units 78,612 82,242 78,385
Physical 96.2% vs. 96.6% 96.2% vs. 96.4% 96.3% vs. 96.5%
Occupancy
Revenues 1.9% 0.8% 2.0%
Expenses 3.0% -2.9% 3.4%
NOI 1.4% 2.6% 1.4%
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 Second
Quarter Quarter June YTD
2026 vs. 2026 vs. 2026 vs.
Second First June YTD
Quarter Quarter 2025
2025 2026
% Change % Change % Change
Same
Store
Residen…
Revenue…
compara…
period
Lease 1.8 % 0.8 % 1.7 %
rates
Leasing (0.1 %) 0.0 % (0.1 %)
Concess…
Vacancy
gain (0.3 %) (0.3 %) (0.1 %)
(loss)
Bad
Debt, 0.2 % 0.2 % 0.2 %
Net
Other 0.5 % 0.3 % 0.5 %
(1)
Same
Store
Residen… 2.1 % 1.0 % 2.2 %
Revenue…
current
period
(1) Includes ancillary income, utility recoveries, early lease termination
income, miscellaneous income and other items. See page 14 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. Residential Same
Store Operating Statistics The following table includes select operating metrics
for Residential Same Store Properties (for 78,385 same store apartment units):
July 2026 (1) Q2 2026 Q1 2026 Q2 2025
Physical Occupancy 96.2% 96.2% 96.5% 96.6%
Percentage of Residents
Renewing by 59.0% 60.0% 61.8% 59.3%
month/quarter
New Lease Change -0.1% -0.7% -2.8% -0.6%
Renewal Rate Achieved 4.9% 5.2% 4.7% 5.1%
Blended Rate 3.0% 2.8% 1.5% 2.7%
(1) July 2026 results are preliminary as of July 15th. “Positive trends around
both supply and demand continue to drive our operating performance during the
primary leasing season and we continue to observe growing rents as we work our
way through the summer,” said Michael Manelis, Equity Residential’s Chief
Operating Officer. “We are well positioned to benefit from this demand as we
grow our operating platform at the combined company and harness the
opportunities that will come from our focus on innovation and serving our
customer.”
3
Table of Contents
Investments Activity
The Company did not acquire any properties during the second quarter of 2026.
During the second quarter of 2026, the Company sold two properties, one in the
Los Angeles market and one in the San Francisco market, consisting of 515
apartment units, for an aggregate sale price of approximately $164.0 million at
a weighted average Disposition Yield of 5.3%. The operating properties sold
during the quarter ended June 30, 2026 have an average age of 30 years.
During the second quarter of 2026, the Company completed a consolidated
partially owned development project located in suburban Boston, consisting of
440 apartment units, for a total cost of approximately $232.2 million. During
the second quarter of 2026, the Company also completed one unconsolidated
partially owned development project in suburban Seattle, consisting of 369
apartment units, for a total cost of approximately $185.3 million.
Merger Update
On May 21, 2026, the Company and AvalonBay announced a definitive agreement to
combine in an all-stock merger of equals, creating one of the country's leading
real estate companies with the differentiated scale, capabilities, and balance
sheet strength to expand margins, accelerate growth, and redefine leadership in
rental housing. The combined company will have a pro forma equity market
capitalization of approximately $53 billion and a total enterprise value of
approximately $71 billion, with more than 180,000 rental apartments (data as of
July 17, 2026).
On June 8, 2026, the combined company announced the expected executive
leadership team, led by Benjamin W. Schall, who will serve as the President and
CEO of the combined company.
Under the terms of the merger agreement, the combined company's board will
consist of 14 trustees, including seven members of the current Equity
Residential board and seven members of the current AvalonBay board. The
following members of the Equity Residential board will serve on the combined
company board as of the closing of the merger: David J. Neithercut, Angela M.
Aman, Chris Carr, Mary Kay Haben, Ann C. Hoff, Nina P. Jones, and Stephen E.
Sterrett. The following members of the AvalonBay board will serve on the
combined company board as of the closing of the merger: Timothy J. Naughton,
Benjamin W. Schall, Terry S. Brown, Conor C. Flynn, Christopher B. Howard,
Charles E. Mueller Jr., and Susan Swanezy. Pursuant to the merger agreement, Mr.
Sterrett will be appointed to serve as the Chairman of the combined company
board.
On August 12, 2026, the Company will hold its special meeting of shareholders
related to the proposed merger and AvalonBay will hold its special meeting of
stockholders. For further information, please refer to the definitive joint
proxy statement/prospectus filed by each of the Company and AvalonBay with the
SEC on July 13, 2026.
About Equity Residential
Equity Residential is committed to creating communities where people thrive. The
Company, a member of the S&P 500, owns and manages 312 rental properties
consisting of 85,520 apartment units in dynamic metro areas across the U.S. with
a primary concentration in major coastal markets, diversified by a targeted
presence in the high-growth metro areas of Atlanta, Dallas/Austin and Denver.
For more information on Equity Residential, please visit our website
atwww.equityapartments.com.
Cautionary Statement Regarding Forward-Looking Statements
This communication contains “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended (the “Securities Act”),
and Section 21E of the Securities Exchange Act of 1934, as amended, which are
based on current expectations, estimates and projections about the industry and
markets in which Equity Residential and AvalonBay operate, as well as beliefs
and assumptions of Equity Residential and AvalonBay. Words such as “anticipate,”
“become,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,”
“outlook,” “plan,” “potential,” “possible,” “predict,” “project,” “target,”
“seek,” “shall,” “should,” “will,” or “would,” including variations of such
words and similar expressions, are intended to identify forward-looking
statements. All statements that address operating performance, events or
developments that Equity Residential or AvalonBay expects or anticipates will
occur in the future are forward-looking statements, including statements
relating to any possible transaction between Equity Residential and AvalonBay,
multifamily market conditions, development, redevelopment, acquisition or
disposition activity, general conditions in the geographic areas where Equity
Residential and AvalonBay operate and Equity Residential’s and AvalonBay’s
respective debt, capital structure and financial position. Such forward-looking
statements are not guarantees of future performance and involve known and
unknown risks, uncertainties, assumptions and other factors that are difficult
to predict and may cause the actual results to differ materially from future
results expressed or implied by such forward-looking statements.
4
Table of Contents
Important factors, risks and uncertainties that could cause actual results to
differ materially from such plans, estimates or expectations include but are not
limited to: (i) the parties’ ability to complete the proposed transaction on the
proposed terms or on the anticipated timeline, or at all, including risks and
uncertainties related to Equity Residential’s and AvalonBay’s ability to obtain
the required respective shareholder or stockholder, as applicable, approval, and
the parties’ ability to satisfy the other conditions to consummating the
proposed transaction; (ii) the inability to realize the anticipated benefits of
the proposed transaction, including as a result of delay in completing the
proposed transaction; (iii) the risk that Equity Residential’s and AvalonBay’s
businesses will not be integrated successfully or that such integration may be
more difficult, time-consuming or costly than expected; (iv) significant
transaction costs and/or unknown or inestimable liabilities; (v) potential
litigation relating to the proposed transaction that could be instituted against
Equity Residential, AvalonBay or their trustees, directors, managers or
officers, including resulting expense or delay and the effects of any outcomes
related thereto; (vi) the risk that disruptions from the proposed transaction,
including diverting the attention of Equity Residential and AvalonBay management
from ongoing business operations, will harm Equity Residential’s and AvalonBay’s
businesses during the pendency of the proposed transaction or otherwise; (vii)
certain restrictions during the pendency of the business combination that may
impact Equity Residential’s and AvalonBay’s ability to pursue certain business
opportunities or strategic transactions; (viii) the possibility that the
business combination may be more expensive to complete than anticipated,
including as a result of unexpected factors or events; (ix) the occurrence of
any event, change or other circumstance that could give rise to the termination
of the merger agreement, including in circumstances requiring Equity Residential
or AvalonBay to pay a termination fee; (x) the effect of the announcement of the
proposed transaction on the ability of Equity Residential and AvalonBay to
operate their respective businesses and retain and hire key personnel, and to
maintain favorable business relationships; (xi) risks related to the market
value of Equity Residential common shares to be issued in the proposed
transaction; (xii) other risks related to the completion of the proposed
transaction and actions related thereto; (xiii) potential business uncertainty,
including changes to existing business relationships, during the pendency of the
business combination or otherwise that could affect Equity Residential’s or
AvalonBay’s financial performance; (xiv) other risks related to the completion
of the proposed transaction and actions related thereto; (xv) legislative,
regulatory and economic developments, including the level of new multifamily
communities construction and development, government regulations and
competition; (xvi) unpredictability and severity of local, regional, national
and international economic, political and catastrophic climates, conditions and
events, including but not limited to acts of terrorism, outbreaks of war or
hostilities or pandemics, as well as management’s response to any of the
aforementioned factors; (xvii) changes in global financial markets, interest
rates and foreign currency exchange rates; (xviii) increased or unanticipated
competition affecting Equity Residential’s and AvalonBay’s properties; (xix)
risks associated with acquisitions, dispositions, development and redevelopment
of properties; (xx) increased costs of labor and construction material; (xxi)
maintenance of real estate investment trust status, tax structuring and changes
in income tax laws and rates; (xxii) environmental uncertainties, including
risks of natural disasters; (xxiii) those risks and uncertainties set forth in
Equity Residential’s and AvalonBay’s Annual Reports on Form 10-K for the year
ended December 31, 2025 under the headings “Forward-Looking Statements” and
“Risk Factors,” as such risk factors may be amended, supplemented or superseded
from time to time by other reports filed by Equity Residential or AvalonBay, as
the case may be, with the Securities and Exchange Commission (the “SEC”) from
time to time, which are available via the SEC’s website at www.sec.gov; and
(xxiv) those risks that are described in the Registration Statement and
Definitive Joint Proxy Statement/Prospectus (each as defined below) that have
been filed with the SEC in connection with the proposed transaction and are
available from the sources indicated below. There can be no assurance that the
proposed transaction will be completed, or if it is completed, that it will
close within the anticipated time period. These factors should not be construed
as exhaustive and should be read in conjunction with the other forward-looking
statements. Forward-looking statements relate only to events as of the date on
which the statements are made. Neither Equity Residential nor AvalonBay
undertakes any obligation to publicly update or review any forward-looking
statement except as required by law, whether as a result of new information,
future developments or otherwise. If one or more of these or other risks or
uncertainties materialize, or if Equity Residential’s and AvalonBay’s underlying
assumptions prove to be incorrect, Equity Residential’s, AvalonBay’s and the
combined company’s actual results may vary materially from what Equity
Residential or AvalonBay may have expressed or implied by these forward-looking
statements. Equity Residential and AvalonBay caution not to place undue reliance
on any of Equity Residential’s or AvalonBay’s forward-looking statements.
Furthermore, new risks and uncertainties arise from time to time, and it is
impossible for us to predict those events or how they may affect Equity
Residential or AvalonBay.
No Offer or Solicitation
This communication is for informational purposes only and is not intended to,
and shall not, constitute an offer to sell or the solicitation of an offer to
sell or the solicitation of an offer to buy any securities or a solicitation of
any vote or approval, nor shall there be any offer, solicitation or sale of
securities in any jurisdiction in which such offer, solicitation, or sale would
be unlawful prior to registration or qualification under the securities laws of
any such jurisdiction. No offer of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities Act.
5
Table of Contents
Important Additional Information and Where to Find It
In connection with the proposed transaction between Equity Residential and
AvalonBay, Equity Residential has filed with the SEC a registration statement on
Form S-4 (File No. 333-297128) (the “Registration Statement”) which includes the
joint proxy statement of Equity Residential and AvalonBay that also constitutes
a prospectus of Equity Residential. The Registration Statement was declared
effective on July 13, 2026, and each of Equity Residential and AvalonBay
commenced mailing of the definitive joint proxy statement of AvalonBay and
Equity Residential that also constitutes a prospectus of Equity Residential (the
“Definitive Joint Proxy Statement/Prospectus”) to their respective shareholders
or stockholders, as applicable, on or about July 13, 2026. Each of Equity
Residential and AvalonBay may also file other relevant documents with the SEC
regarding the proposed transaction. This communication is not a substitute for
the Registration Statement, Definitive Joint Proxy Statement/Prospectus or any
other document that Equity Residential or AvalonBay (as applicable) have filed
or may file with the SEC in connection with the proposed transaction. BEFORE
MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS OF
EQUITY RESIDENTIAL AND AVALONBAY ARE URGED TO READ CAREFULLY AND IN THEIR
ENTIRETY THE REGISTRATION STATEMENT, THE DEFINITIVE JOINT PROXY
STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE
FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS
WHEN THEY BECOME AVAILABLE WITH THE SEC BECAUSE THEY CONTAIN OR WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS.
Investors and security holders may obtain free copies of the Registration
Statement and the Definitive Joint Proxy Statement/Prospectus and other
documents filed with the SEC by Equity Residential and AvalonBay, which contain
important information, through the website maintained by the SEC at www.sec.gov.
The documents filed by Equity Residential with the SEC may be obtained free of
charge by accessing “Filings – SEC Filings” in the “Investor” section of Equity
Residential’s website at www.equityapartments.com, by writing to Equity
Residential – Investor Relations, Two North Riverside Plaza, Suite 500, Chicago,
Illinois 60606, by telephone at 1-888-879-6356 or by email at
investorrelations@eqr.com. The documents filed by AvalonBay with the SEC may be
obtained free of charge by accessing the “Investors” section of AvalonBay’s
website at www.avalonbay.com or by writing to AvalonBay, 4040 Wilson Blvd.,
Suite 1000, Arlington, Virginia 22203, Attention: Corporate Secretary (Legal
Department) or by email at investor_relations@avalonbay.com.
Participants in the Solicitation
Equity Residential, AvalonBay, and certain of their respective trustees,
directors and executive officers may be deemed to be participants in the
solicitation of proxies from Equity Residential’s and AvalonBay’s shareholders
or stockholders, as applicable, in respect of the proposed transaction.
Information about the directors and executive officers of AvalonBay, including a
description of their direct or indirect interests, by security holdings or
otherwise, is set forth in AvalonBay’s proxy statement for its 2026 Annual
Meeting of Stockholders under the headings “Director Nominees,” “Transactions
with Related Persons, Promoters and Certain Control Persons,” “Director
Compensation,” “Director Compensation Table,” “Compensation Discussion and
Analysis,” “Executive Compensation Tables” and “Officers, Stock Ownership and
Other Information,” which was filed with the SEC onApril 6, 2026, and in
AvalonBay’s Annual Report on Form 10-K for the fiscal year ended December 31,
2025, which was filed with the SEC onFebruary 27, 2026. Information about the
trustees and executive officers of Equity Residential, including a description
of their direct or indirect interests, by security holdings or otherwise, is set
forth in Equity Residential’s proxy statement for its 2026 Annual Meeting of
Shareholders under the headings “Biographical Information and Qualifications of
Trustees,” “Biographical Information of Executives,” “Common Share Ownership of
Trustees and Executives,” “Compensation Discussion and Analysis,” “Executive
Compensation” and “Trustee Compensation,” which was filed with the SEC onApril
14, 2026, and in Equity Residential’s Annual Report on Form 10-K for the fiscal
year ended December 31, 2025, which was filed with the SEC onFebruary 13, 2026.
To the extent holdings of Equity Residential’s securities by its trustees or
executive officers have changed since the amounts set forth in Equity
Residential’s definitive proxy statement for its 2026 Annual Meeting of
Shareholders or the holdings of AvalonBay’s securities by its directors or
executive officers have changed since the amounts set forth in AvalonBay’s
definitive proxy statement for its 2026 Annual Meeting of Stockholders, such
changes have been or will be reflected on an Initial Statement of Beneficial
Ownership of Securities on Form 3, Statement of Changes in Beneficial Ownership
on Form 4, or Annual Statement of Changes in Beneficial Ownership on Form 5, in
each case filed with the SEC and available on the SEC’s website at www.sec.gov.
Other information regarding the participants in the proxy solicitations and a
description of their direct and indirect interests, by security holdings or
otherwise, are contained in the Registration Statement, the Definitive Joint
Proxy Statement/Prospectus and other relevant materials to be filed with the SEC
regarding the proposed transaction when such materials become available.
Investors and security holders should read the Registration Statement and the
Definitive Joint Proxy Statement/Prospectus carefully before making any voting
or investment decisions. Investors may obtain free copies of these documents
from Equity Residential or AvalonBay using the sources indicated above.
6
Table of Contents
In light of the Company's previously announced merger of equals with AvalonBay,
the Company will not hold a conference call to discuss its second quarter 2026
financial results. The Company is providing a Management Presentation in the
Investor section of the Company’s website atwww.equityapartments.com.
7
Table of Contents
Equity Residential Consolidated Statem ents of Operations (Amounts in thousands
except per share data) (Unaudited)
Six
Mont… Quar…
Ended Ended
June June
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
REV…
Ren… $ 1,56… $ 1,52… $ 785,… $ 768,…
inc…
EXP…
Pro…
and 292,… 280,… 142,… 136,…
mai…
Real
est…
tax… 239,… 224,… 122,… 112,…
and
ins…
Pro… 73,2… 70,6… 38,1… 34,7…
man…
Gen…
and 33,5… 36,7… 16,6… 18,5…
adm…
Dep… 493,… 497,… 246,… 240,…
Tot… 1,13… 1,10… 566,… 542,…
exp…
Net
gain
(lo…
on
sal… (16,… ) 212,… (16,… ) 58,2…
of
real
est…
pro…
Int…
and 15,1… 3,821 12,9… 2,129
oth…
inc…
Oth… (50,… ) (8,9… ) (10,… ) (4,8… )
exp…
Int…
Exp…
inc… (159… ) (147… ) (82,… ) (75,… )
net
Amo…
of
def… (4,2… ) (4,2… ) (2,1… ) (2,1… )
fin…
cos…
Inc…
bef…
inc…
and
oth…
tax…
inc…
(lo…
from
inv…
in 216,… 475,… 120,… 204,…
unc…
ent…
and
net
gain
(lo…
on
sal…
of
land
par…
Inc…
and
oth… (833 ) (829 ) (411 ) (407 )
tax
(ex…
ben…
Inc…
(lo…
from
inv… (4,3… ) (11,… ) (2,3… ) (4,9… )
in
unc…
ent…
Net
gain
(lo…
on — (78 ) — (11 )
sal…
of
land
par…
Net 210,… 463,… 117,… 198,…
inc…
Net
(in…
loss
att…
to
Non…
Int…
Ope… (4,4… ) (12,… ) (2,5… ) (5,2… )
Par…
Par…
Own… (2,1… ) (2,3… ) (1,1… ) (1,2… )
Pro…
Net
inc…
att… 204,… 448,… 114,… 192,…
to
con…
int…
Pre… (711 ) (711 ) (355 ) (355 )
dis…
Net
inc…
ava… $ 203,… $ 448,… $ 113,… $ 192,…
to
Com…
Sha…
Ear…
per
sha…
–
bas…
Net
inc…
ava… $ 0.54 $ 1.18 $ 0.30 $ 0.51
to
Com…
Sha…
Wei…
ave…
Com… 374,… 379,… 374,… 379,…
Sha…
out…
Ear…
per
sha…
–
dil…
Net
inc…
ava… $ 0.54 $ 1.18 $ 0.30 $ 0.50
to
Com…
Sha…
Wei…
ave…
Com… 384,… 391,… 383,… 391,…
Sha…
out…
Dis…
dec…
per $ 1.405 $ 1.385 $ 0.70… $ 0.69…
Com…
Sha…
out…
8
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
Mont… Quar…
Ended Ended
June June
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 210,… $ 463,… $ 117,… $ 198,…
inc…
Net
(in…
loss
att…
to
Non… (2,1… ) (2,3… ) (1,1… ) (1,2… )
Int…
–
Par…
Own…
Pro…
Pre… (711 ) (711 ) (355 ) (355 )
dis…
Net
inc…
ava…
to 207,… 460,… 116,… 197,…
Com…
Sha…
and
Uni…
Adj…
Dep… 493,… 497,… 246,… 240,…
Dep…
–
Non… (2,0… ) (1,8… ) (1,0… ) (884 )
est…
add…
Dep…
–
Par… (1,2… ) (963 ) (677 ) (485 )
Own…
Pro…
Dep…
– 8,080 8,735 4,748 4,340
Unc…
Pro…
Net
(ga…
loss
on
sal…
of — (138 ) — (174 )
unc…
ent…
-
ope…
ass…
Net
(ga…
loss
on
sal… 16,7… (212… ) 16,7… (58,… )
of
real
est…
pro…
FFO
ava…
to
Com… 723,… 751,… 382,… 382,…
Sha…
and
Uni…
Adj…
(see
note
for
add…
det…
Wri…
of 1,610 2,048 656 727
pur…
cos…
Debt
ext…
and
pre… — 97 — —
sha…
red…
(ga…
los…
Non…
ass… (10,… ) 624 (11,… ) 186
(ga…
los…
Oth…
mis… 60,4… 4,971 21,6… 3,244
ite…
Nor…
FFO
ava…
to $ 774,… $ 759,… $ 393,… $ 386,…
Com…
Sha…
and
Uni…
FFO $ 724,… $ 752,… $ 382,… $ 382,…
Pre… (711 ) (711 ) (355 ) (355 )
dis…
FFO
ava…
to
Com… $ 723,… $ 751,… $ 382,… $ 382,…
Sha…
and
Uni…
FFO
per
sha…
and $ 1.89 $ 1.93 $ 1.00 $ 0.98
Unit
–
bas…
FFO
per
sha…
and $ 1.88 $ 1.92 $ 1.00 $ 0.98
Unit
–
dil…
Nor… $ 775,… $ 760,… $ 393,… $ 387,…
FFO
Pre… (711 ) (711 ) (355 ) (355 )
dis…
Nor…
FFO
ava…
to $ 774,… $ 759,… $ 393,… $ 386,…
Com…
Sha…
and
Uni…
Nor…
FFO
per
sha… $ 2.02 $ 1.95 $ 1.03 $ 0.99
and
Unit
–
bas…
Nor…
FFO
per
sha… $ 2.01 $ 1.94 $ 1.02 $ 0.99
and
Unit
–
dil…
Wei…
ave…
Com…
Sha…
and 383,… 389,… 382,… 389,…
Uni…
out…
–
bas…
Wei…
ave…
Com…
Sha…
and 384,… 391,… 383,… 391,…
Uni…
out…
–
dil…
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.
9
Table of Contents
Equity Residential Consolidated B alance Sheets (Amounts in thousands except for
share amounts) (Unaudited)
June 30, December 31,
ASSETS 2026 2025
──────────────────────────────────────────────────────────────────────────────
Land $ 5,516,087 $ 5,563,407
Depreciable 24,808,104 24,705,540
property
Projects under 58,312 100,561
development
Land held for 58,318 86,341
development
Investment in 30,440,821 30,455,849
real estate
Accumulated (11,453,919 ) (11,016,900 )
depreciation
Investment in 18,986,902 19,438,949
real estate, net
Investments in
unconsolidated 323,342 325,939
entities1
Cash and cash 36,405 55,904
equivalents
Restricted 106,975 102,950
deposits
Right-of-use 450,474 454,916
assets
Other assets 371,479 367,365
Total assets $ 20,275,577 $ 20,746,023
LIABILITIES AND
EQUITY
Liabilities:
Mortgage notes $ 1,591,821 $ 1,589,904
payable, net
Notes, net 6,002,002 5,998,458
Line of credit
and commercial 667,846 586,648
paper
Accounts payable
and accrued 120,197 109,165
expenses
Accrued interest 73,450 73,860
payable
Lease 303,831 304,575
liabilities
Other 277,286 324,616
liabilities
Security 83,076 82,155
deposits
Distributions 269,489 267,508
payable
Total 9,388,998 9,336,889
liabilities
Commitments and
contingencies
Redeemable
Noncontrolling
Interests – 189,941 176,289
Operating
Partnership
Equity:
Shareholders'
equity:
Preferred Shares
of beneficial
interest, $0.01
par value;
100,000,000
shares
authorized; 17,155 17,155
343,100 shares
issued and
outstanding as
of June 30, 2026
and December 31,
2025
Common Shares of
beneficial
interest, $0.01
par value;
1,000,000,000
shares
authorized;
374,893,890
shares issued 3,749 3,778
and outstanding
as of June 30,
2026 and
377,806,173
shares issued
and outstanding
as of December
31, 2025
Paid in capital 9,840,190 9,824,460
Retained 651,138 1,193,931
earnings
Accumulated
other
comprehensive 2,748 2,175
income
(loss)
Total
shareholders’ 10,514,980 11,041,499
equity
Noncontrolling
Interests:
Operating 182,816 192,135
Partnership
Partially Owned (1,158 ) (789 )
Properties
Total
Noncontrolling 181,658 191,346
Interests
Total equity 10,696,638 11,232,845
Total
liabilities and $ 20,275,577 $ 20,746,023
equity
1 Includes $257.0 million and $261.4 million in unconsolidated development and
operating projects as of June 30, 2026 and December 31, 2025, respectively. See
Partially Owned Properties and/or Development and Lease-Up Projects for
additional detail on unconsolidated projects.
10
Table of Contents
Equity ResidentialPortfolio SummaryAs of June 30, 2026
────────────────────────────────────────────────────────
% of
Stabil… Avera…
Mark… Apart… Budget… Rental
Areas Prope… Units NOI Rate
──────────────────────────────────────────────────────────────────────────────
Los 55 14,035 15.5 % $ 3,021
Ange…
Oran… 12 3,718 4.8 % 3,056
Coun…
San 10 2,225 3.1 % 3,341
Diego
Subt…
– 77 19,978 23.4 % 3,063
Sout…
Cali…
San 40 11,466 16.2 % 3,641
Fran…
Wash… 42 13,553 14.6 % 2,881
D.C.
New 34 8,685 14.3 % 4,942
York
Bost… 26 7,348 11.3 % 3,777
Seat… 39 8,420 9.6 % 2,781
Atla… 22 6,420 4.4 % 1,949
Denv… 16 4,678 3.6 % 2,125
Dall… 16 4,972 2.6 % 1,902
Total 312 85,520 100.0 % $ 3,138
Properties Apartment Units
Wholly Owned Properties 295 81,039
Partially Owned Properties – 13 3,096
Consolidated
Partially Owned Properties – 4 1,385
Unconsolidated
312 85,520
Note: Projects under development are not included in the Portfolio Summary until
construction has been completed.
2nd Quarter 2026 Earnings Release 11
Table of Contents
Equity Residential
Portfolio Rollforward Q2 2026 ($ in thousands)
3/3… Apar… Sales Disp…
Dis… Prop… 312 Units 85,… Price Yield
──────────────────────────────────────────────────────────────────────────────
Con…
Ren… (2 ) (515 ) $ (16… ) (5.3 %)
Pro…
Com…
Dev… 1 440
–
Con…
Com…
Dev… 1 369
–
Unc…
Con… — 15
Cha…
6/3… 312 85,…
Portfolio Rollforward 2026 ($ in thousands)
12/… Apar… Sales Disp…
Dis… Prop… 312 Units 85,… Price Yield
──────────────────────────────────────────────────────────────────────────────
Con…
Ren… (2 ) (515 ) $ (16… ) (5.3 %)
Pro…
Com…
Dev… 1 440
–
Con…
Com…
Dev… 1 369
–
Unc…
Con… — 36
Cha…
6/3… 312 85,…
2nd Quarter 2026 Earnings Release 12
Table of Contents
Equity Residential
Second Quarter 2026 vs. Second Quarter 2025 Same Store Results/Statistics
Including 78,612 Same Store Apartment Units (includes Residential and Non-
Residential) ($ in thousands except for Average Rental Rate)
…
…
R… … …
… R… E… N… … … T…
──────────────────────────────────────────────────────────────────────────────
… $ 7… $ 2… $ 5… $ 3… 9… % … %
…
… $ 7… $ 2… $ 5… $ 3… 9… % … %
…
… $ 1… $ 6… $ 6… $ 77 (… … … %
… 1… % 3… % 1… % 2… %
Second Quarter 2026 vs. First Quarter 2026 Same Store Results/Statistics
Including 82,242 Same Store Apartment Units (includes Residential and Non-
Residential) ($ in thousands except for Average Rental Rate)
…
…
R… … …
… R… E… … … … T…
──────────────────────────────────────────────────────────────────────────────
… $ 7… $ 2… $ 5… $ 3… 9… % … %
…
… $ 7… $ 2… $ 5… $ 3… 9… % … %
…
… $ 5… $ (… ) $ 1… $ 39 (… … … %
… 0… % (… %) 2… % 1… %
June YTD 2026 vs. June YTD 2025 Same Store Results/Statistics Including 78,385
Same Store Apartment Units (includes Residential and Non-Residential) ($ in
thousands except for Average Rental Rate)
…
…
R… … …
… R… E… N… … … T…
──────────────────────────────────────────────────────────────────────────────
…
… $ 1… $ 4… $ 1… $ 3… 9… % … %
…
…
… $ 1… $ 4… $ 9… $ 3… 9… % … %
…
… $ 2… $ 1… $ 1… $ 73 (… … … %
… 2… % 3… % 1… % 2… %
2nd Quarter 2026 Earnings Release 13
Table of Contents
Equity Residential
Same Store Residential Revenues – GAAP to Cash Basis (1) ($ in thousands)
7…
7… S… 8… S… S… J…
S… Q… S… Q… S… Y…
S… 2… S… 2… A… 2…
A… v… A… v… U… v…
U… S… U… F… J… J… …
Q2 Q… Q2 Q2 Q… Q1 Y… Y… …
2… 2… 2… 2… 2… 2… 2… 2… …
──────────────────────────────────────────────────────────────────────────────
…
…
… $ 7… $ 7… $ 7… $ 7… $ 1… $ 1…
…
…
…
…
… 6… 6… 7… 7… 1… 1…
…
…
… (… ) (… ) (… ) (… ) (… ) (… )
…
…
…
…
…
…
… $ 7… $ 7… $ 7… $ 7… $ 1… $ 1…
…
…
a
…
…
%
…
- 2… % 1… % 2… %
…
…
%
…
- 2… % 0… % 2… %
…
…
(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 78,385 Same Store Apartment Units (includes Residential and
Non-Residential) ($ in thousands)
Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025
──────────────────────────────────────────────────────────────────────────────
Same
store $ 747,911 $ 742,364 $ 738,787 $ 738,882 $ 733,893
reven…
Same
store 239,427 246,719 232,838 237,592 232,376
expen…
Same
store $ 508,484 $ 495,645 $ 505,949 $ 501,290 $ 501,517
NOI
2nd Quarter 2026 Earnings Release 14
Table of Contents
Equity ResidentialSecond Quarter 2026 vs. Second
Quarter 2025Same Store Residential
Results/Statistics by Market
──────────────────────────────────────────────────────────────────────────────
Note: The above table reflects Residential same store results only. Residential
operations account for more than 96.0% of total revenues for the six months
ended June 30, 2026.
2nd Quarter 2026 Earnings Release 15
Table of Contents
Equity ResidentialSecond Quarter 2026 vs. First
Quarter 2026Same Store Residential
Results/Statistics by Market
──────────────────────────────────────────────────────────────────────────────
Note: The above table reflects Residential same store results only. Residential
operations account for more than 96.0% of total revenues for the six months
ended June 30, 2026.
2nd Quarter 2026 Earnings Release 16
Table of Contents
Equity ResidentialJune YTD 2026 vs. June YTD
2025Same Store Residential Results/Statistics by
Market
──────────────────────────────────────────────────────────────────────────────
Note: The above table reflects Residential same store results only. Residential
operations account for more than 96.0% of total revenues for the six months
ended June 30, 2026.
2nd Quarter 2026 Earnings Release 17
Table of Contents
Equity Residential
Second Quarter 2026 vs. Second Quarter 2025 Total Same Store Operating Expenses
Including 78,612 Same Store Apartment Units (includes Residential and Non-
Residential) ($ in thousands)
% of
Q2
2026
Q2 Q2 $ % Oper…
2026 2025 Chan… Change Expe…
──────────────────────────────────────────────────────────────────────────────
Real
esta… $ 96,632 $ 95,437 $ 1,195 1.3 % 40.3 %
taxes
On-s… 45,024 43,655 1,369 3.1 % 18.8 %
payr…
Util… 37,911 34,577 3,334 9.6 % 15.8 %
Repa…
and 34,056 33,505 551 1.6 % 14.2 %
main…
Insu… 9,880 9,500 380 4.0 % 4.1 %
Leas…
and 3,446 3,234 212 6.6 % 1.4 %
adve…
Other
on-s… 12,979 13,035 (56 ) (0.4 %) 5.4 %
oper…
expe…
Total
Same
Store $ 239,9… $ 232,9… $ 6,985 3.0 % 100.0 %
Oper…
Expe…
(2)
June YTD 2026 vs. June YTD 2025 Total Same Store Operating Expenses Including
78,385 Same Store Apartment Units (includes Residential and Non-Residential) ($
in thousands)
% of
YTD
$ 2026
YTD YTD Cha… % Ope…
2026 2025 (1) Cha… Exp…
──────────────────────────────────────────────────────────────────────────────
Re…
es… $ 194… $ 190… $ 3,… 2.1 % 40… %
ta…
On… 89,… 87,… 1,… 1.7 % 18… %
pa…
Ut… 80,… 74,… 5,… 8.0 % 16… %
Re…
and 66,… 63,… 2,… 4.3 % 13… %
ma…
In… 19,… 18,… 804 4.2 % 4.1 %
Le…
and 6,9… 6,1… 819 13… % 1.4 %
ad…
Ot…
on… 29,… 29,… 128 0.4 % 6.0 %
op…
ex…
To…
Sa…
St… $ 486… $ 470… $ 15… 3.4 % 10… %
Op…
Ex…
(2)
(1) The year-over-year changes were primarily driven by the following factors:
Real estate taxes – Increase due to escalation in rates and assessed values. On-
site payroll – Sub-inflationary growth due to the impact of various innovation
initiatives and lower employee benefit costs. Utilities – Increase primarily
driven by higher costs for trash removal and higher commodity prices,
particularly impacting electricity and gas. Repairs and maintenance – Increase
primarily driven by costs associated with the implementation of various resident
technology initiatives (including bulk Wi-Fi programs), which is more than
offset by a corresponding increase in same store revenues. Insurance – Increase
primarily driven by higher general liability premiums and property casualty
losses, partially offset by lower property premiums. Leasing and advertising –
Increase primarily driven by higher interactive marketing/advertising costs,
processing fees and certain one-time broker fee costs related to Non-Residential
leasing activity. (2) See Additional Reconciliations and Definitions of Non-GAAP
Financial Measures and Other Terms for additional details.
2nd Quarter 2026 Earnings Release 18
Table of Contents
Equity Residential
Debt Summary as of June 30, 2026 ($ in thousands)
Weig… Weigh…
Debt Aver… Avera…
Balan… % of Rates Matur…
(1) Total (1) (year…
──────────────────────────────────────────────────────────────────────────────
Secu… $ 1,591… 19.3 % 3.72 % 5.4
Unse… 6,669… 80.7 % 3.79 % 6.3
Total $ 8,261… 100.0 % 3.78 % 6.1
Fixed
Rate
Debt:
Secu…
– $ 1,404… 17.0 % 3.86 % 4.9
Conv…
Unse…
– 6,002… 72.7 % 3.77 % 7.0
Publ…
Fixed
Rate 7,406… 89.7 % 3.79 % 6.6
Debt
Floa…
Rate
Debt:
Secu…
– Tax 186,9… 2.3 % 2.69 % 9.0
Exem…
Unse…
–
Revo… — — 4.40 % 4.4
Cred…
Faci…
Unse…
–
Comm… 667,8… 8.0 % 3.96 % —
Paper
Prog…
(2)
Floa…
Rate 854,7… 10.3 % 3.70 % 2.0
Debt
Total $ 8,261… 100.0 % 3.78 % 6.1
(1) See Additional Reconciliations and Definitions of Non-GAAP Financial
Measures and Other Terms for additional details. (2) At June 30, 2026, the
weighted average maturity of commercial paper outstanding was 3 days. The
weighted average amount outstanding for the six months ended June 30, 2026 was
approximately $718.3 million. Note: The Company capitalized interest of
approximately $4.7 million and $6.7 million during the six months ended June 30,
2026 and 2025, respectively. The Company capitalized interest of approximately
$2.1 million and $2.8 million during the quarters ended June 30, 2026 and 2025,
respectively.
2nd Quarter 2026 Earnings Release 19
Table of Contents
Equity Residential
Debt Maturity Schedule as of June 30, 2026 ($ in thousands)
W…
A… W…
C… A…
on C…
F… on
% R… T…
F… F… of D… D…
… R… R… T… T… (… (…
──────────────────────────────────────────────────────────────────────────────
… $ 5… $ 6… … $ … … % … % … %
… 4… 8… … … % … % … %
… 9… 9… … … % … % … %
… 8… 9… … … % … % … %
… 1… 1… … … % … % … %
… 5… 3… … … % … % … %
… 5… 2… … … % … % … %
… 5… — … … % … % … %
… 6… — … … % … % … %
… — 2… … … % — … %
… 1… 6… … … % … % … %
… 7… 8… … … % … % … %
…
…
… (… ) (… ) … ) N… N… N…
…
…
…
… $ 7… $ 8… $ … … % … % … %
(1) See Additional Reconciliations and Definitions of Non-GAAP Financial
Measures and Other Terms for additional details. (2) Includes $668.0 million in
principal outstanding on the Company's Commercial Paper Program.
2nd Quarter 2026 Earnings Release 20
Table of Contents
Equity Residential
Selected Unsecured Public Debt Covenants
June 30, March 31,
2026 2026
Debt to Adjusted Total Assets (not to 27.7% 27.9%
exceed 60%)
Secured Debt to Adjusted Total Assets 6.1% 6.1%
(not to exceed 40%)
Consolidated Income Available for Debt Service to
Maximum Annual Service Charges 5.60 5.60
(must be at least 1.5 to 1)
Total Unencumbered Assets to Unsecured Debt 470.6% 466.1%
(must be at least 125%)
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,
2026 2026
Total debt to Normalized EBITDAre 4.32x 4.38x
Net debt to Normalized EBITDAre 4.28x 4.35x
Unencumbered NOI as a % of total NOI 90.0% 90.1%
Note: See Normalized EBITDAre Reconciliations for detail.
2nd Quarter 2026 Earnings Release 21
Table of Contents
Equity Residential
Capital Structure as o f June 30, 2026 (Amounts in thousands except for
share/unit and per share amounts)
Secured $ 1,591,821 19.3 %
Debt
Unsecur… 6,669,848 80.7 %
Debt
Total 8,261,669 100.0 % 24.0 %
Debt
Common
Shares
(includ… 374,893,… 97.6 %
Restric…
Shares)
Units
(includ…
OP Units 9,256,676 2.4 %
and
Restric…
Units)
Total
Shares 384,150,… 100.0 %
and
Units
Common
Share
Price at $ 67.93
June 30,
2026
26,095,3… 99.9 %
Perpetu…
Preferr…
Equity 17,155 0.1 %
(see
below)
Total 26,112,5… 100.0 % 76.0 %
Equity
Total
Market $ 34,374,1… 100.0 %
Capital…
Perpetual Preferred Equity as of June 30, 2026 (Amounts in thousands except for
share and per share amounts)
Annu…
Ser… Divi… Annu…
Pre… Call Outs… Liqu… Per Divi…
Sha… Date Shar… Value Share Amou…
──────────────────────────────────────────────────────────────────────────────
8.2…
Ser… 12/1… 343,… $ 17,1… $ 4.145 $ 1,4…
K
2nd Quarter 2026 Earnings Release 22
Table of Contents
Equity ResidentialCommon Share and UnitWeighted
Average Amounts Outstanding
June June Q2 Q2
YTD YTD 2026 2025
2026 2025
Weig…
Aver…
Amou…
Outs…
for
Net
Inco…
Purp…
Comm…
Shar… 374,9… 379,3… 374,1… 379,5…
-
basic
Shar…
issu…
from
assu…
conv…
of:
- OP 8,201… 10,41… 8,227… 10,32…
Units
-
long… 1,419… 1,566… 1,471… 1,660…
comp…
shar…
Total
Comm…
Shar…
and 384,5… 391,3… 383,8… 391,4…
Units
-
dilu…
Weig…
Aver…
Amou…
Outs…
for
FFO
and
Norm…
FFO
Purp…
Comm…
Shar… 374,9… 379,3… 374,1… 379,5…
-
basic
OP
Units 8,201… 10,41… 8,227… 10,32…
-
basic
Total
Comm…
Shar…
and 383,1… 389,7… 382,4… 389,8…
OP
Units
-
basic
Shar…
issu…
from
assu…
conv…
of:
-
long… 1,419… 1,566… 1,471… 1,660…
comp…
shar…
Total
Comm…
Shar…
and 384,5… 391,3… 383,8… 391,4…
Units
-
dilu…
Peri…
Endi…
Amou…
Outs…
Comm…
Shar…
(inc… 374,8… 379,9…
Rest…
Shar…
Units
(inc…
OP
Units 9,256… 11,60…
and
Rest…
Unit…
Total
Shar… 384,1… 391,5…
and
Units
2nd Quarter 2026 Earnings Release 23
Table of Contents
Equity ResidentialPartially Owned Properties as of June 30, 2026(Amounts in
thousands except for project/property and apartment unit amounts)
──────────────────────────────────────────────────────────────────────────────
Ju…
P… We… Ju… YTD
O… Av… To… YTD 26
P… Ow… Tot… Ap… 26 In… To…
C… Pe… Pro… Un… NOI Ex… De…
──────────────────────────────────────────────────────────────────────────────
P…
C…
N… 95… 1 440 $ 1,5… $ — $ —
S…
(…
O…
p… 85… 12 2,6… 32,… 510 28,…
(…
T…
P…
O… 13 3,0… 34,… 510 28,…
P…
-
C…
U…
P…
U…
D… 95… — — 509 670 54,…
(…
(…
P…
C…
N… 95… 1 369 (173 ) — 62,…
S…
(…
O…
p… 73… 3 1,0… 10,… 5,2… 212…
(…
T…
P…
O… 4 1,3… 11,… 5,9… 328…
P…
-
U…
T…
P… 17 4,4… $ 45,… $ 6,4… $ 357…
O…
P…
(1) The Company is currently developing one property, which is expected to add
270 apartment units upon completion. (2) See Development and Lease-Up Projects
for more information. Note: Partially owned consolidated and unconsolidated
amounts are presented at 100% of the project/property. This schedule only
includes those projects/properties that are partially owned at June 30, 2026.
2nd Quarter 2026 Earnings Release 24
Table of Contents
Equity ResidentialDevelopment and Lease-Up Projects as of June 30,
2026(Amounts in thousands except for project and apartment unit amounts)
──────────────────────────────────────────────────────────────────────────────
… T…
… N… T… B… P…
… of B… V… T… E… L…
… … A… C… to D… S… … C… … /
… L… … U… C… D… (… D… … D… … O…
──────────────────────────────────────────────────────────────────────────────
… C… Q1 … Q1 … –
… GA … … $ … $ … $ — 2… … 2… … /
–
A… Q1 … Q2 … –
… GA … … … … — 2… … 2… … /
–
…
…
… … … … —
-
…
…
…
…
…
… W… Q1 … Q2 … 7…
… MA … … … … — 2… … 2… … /
6…
…
…
… … … … —
…
-
…
…
…
…
…
… 6…
… M… … … … … … Q3 … Q3 … /
… MA 2… … 2… … 4…
…
…
…
… … … … …
-
…
…
…
…
…
… 1…
… K… … … … … … Q3 … Q2 … /
… WA 2… … 2… … 2%
…
…
…
… … … … …
…
-
…
…
…
… … … … —
-
…
…
…
… … … … …
-
…
…
… … $ … $ … $ …
…
NOI CONTRIBUTION FROM
DEVELOPMENT Total Budgeted June YTD 26
PROJECTS Capital Cost NOI
──────────────────────────────────────────────────────────────────────────────
Projects Under Development
- $ 174,461 $ —
Consolidated
Projects Completed Not
Stabilized - 232,172 1,537
Consolidated
Projects Under Development
- 121,918 509
Unconsolidated
Projects Completed Not
Stabilized - 185,282 (173 )
Unconsolidated
$ 713,833 $ 1,873
(1) All unconsolidated projects are being partially funded with third party,
project-specific construction loans, none of which are recourse to the Company.
(2) Modera Bridle Trails is considered complete because all certificates of
occupancy have been received. Though Modera South Shore has progressed further
with development and lease-up, not all certificates of occupancy have yet been
received for that project and thus it is still considered under development.
2nd Quarter 2026 Earnings Release 25
Table of Contents
Equity ResidentialResidential Capital Expenditures to Real Estate For the
Six Months Ended June 30, 2026(Amounts in thousands except for apartment
unit and per apartment unit amounts)
──────────────────────────────────────────────────────────────────────────────
Same
Store
Tot… Avg.
Con… Same Non-… Total Per
Apa… Store Store Cons… Apar…
Uni… Prop… 78,3… Prop… 5,750 Prop… 84,1… Unit
──────────────────────────────────────────────────────────────────────────────
Rec…
Cap… $ 86,4… $ 8,078 $ 94,5… $ 1,103
Exp…
NOI…
Exp…
Ren… 41,7… -1 3,672 -3 45,3… 532
Exp…
Oth… 11,8… 2,469 14,3… 152
(2)
Tot…
NOI… 53,5… 6,141 59,7… 684
Exp…
Tot…
Cap…
Exp…
to $ 140,… $ 14,2… $ 154,… $ 1,787
Real
Est…
(4)
(1) Renovation Expenditures on 1,393 same store apartment units for the six
months ended June 30, 2026 approximated $30,000 per apartment unit renovated.
(2) Includes sustainability, property-level technology and Accessory Dwelling
Units (ADU) spend. (3) Includes expenditures for one property that has 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 renovation is expected to continue through the fourth
quarter of 2026 and is being paid for, in part, by funds from a replacement
reserve account required by the ground lease arrangement. (4) See Additional
Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms
for additional details. Note: Non-Residential Capital Expenditures to Real
Estate were approximately $6.0 million for both Same Store Properties and Total
Consolidated Properties.
2nd Quarter 2026 Earnings Release 26
Table of Contents
Equity Residential
Normalized EBITDAre Reconciliations
(Amounts in thousands)
… … …
… … …
… … … … … … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ … $ … $ … $ …
… … … … … … …
… … … … … … …
… … … … … … …
… … … … … … …
… … … … … … …
… … … … … … …
… ) … ) … … … ) … ) …
… ) … ) — — … ) — …
… … … … … … …
… … … … … … …
… … … … … … …
… … — … … — —
2 … — — — 2 …
… ) … … ) — — 2 9
… ) … ) … ) — — … ) —
… ) … ) — … ) — — …
… … … … … … …
… … … … … … …
… — … — — — —
… ) … ) — — — … ) —
… ) … … ) … — … …
$ … $ … $ … $ … $ … $ … $ …
… …
… …
… …
$ … $ …
… ) … )
… ) … )
$ … $ …
(1) Insurance/litigation settlement or reserve expense includes reserves
relating to various legal proceedings being defended by the Company and other
insurance-related matters. Note: EBITDA, EBITDAre and Normalized EBITDAre do not
include any adjustments for the Company’s share of partially owned
unconsolidated entities due to the immaterial size of the Company’s partially
owned unconsolidated portfolio.
2nd Quarter 2026 Earnings Release 27
Table of Contents
Equity Residential
Adjustments from FFO to Normalized FFO
(Amounts in thousands)
S…
M… …
E… …
J… …
2… 3… 2… V… 2… … 2… V…
──────────────────────────────────────────────────────────────────────────────
…
–
… $ — $ — $ — $ — $ — $ —
…
…
…
…
…
… 1… 2… (… ) … … … )
…
…
…
…
…
…
… — 97 (… ) — — —
…
…
…
…
…
…
…
… — 97 (… ) — — —
…
…
…
…
…
…
…
… — 78 (… ) — … … )
…
…
…
…
…
…
…
…
… (… ) 4… (… ) … ) … … )
…
…
─
…
…
…
…
…
…
… (… ) 49 (… ) … ) 9 … )
…
…
…
…
…
…
…
…
…
… (… ) — (… ) … ) — … )
…
…
…
…
…
…
… (… ) 6… (… ) … ) … … )
…
…
…
…
…
…
… (… ) (… ) (… ) — … ) …
…
…
…
…
…
…
…
…
… 5… 4… 4… … … …
…
…
…
…
…
…
… 3… 3… 2… … … …
…
…
…
…
… 5… — 5… … — …
…
…
…
…
… 2… — 2… … — …
…
…
… (… ) (… ) (… ) … ) … … )
…
… 6… 4… 5… … … …
…
…
…
… $ 5… $ 7… $ 4… $ … $ … $ …
…
…
…
(1) Insurance/litigation settlement or reserve expense includes reserves
relating to various legal proceedings being defended by the Company and other
insurance-related matters. 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 2026 Earnings Release 28
Table of Contents
Equity ResidentialAdditional 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 3.0% 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 : Accessory Dwelling Units (ADU) – Includes costs to
convert existing underutilized spaces of our properties into new apartment
units. NOI-Enhancing – Primarily includes Renovation Expenditures as well as
sustainability, property-level technology and ADU expenditures that are intended
to increase revenues or decrease expenses. Recurring – Capital expenditures
necessary to help preserve the value of and maintain the functionality of our
apartment properties. Renovation Expenditures – Apartment unit renovation costs
(primarily kitchens and baths) designed to reposition these units for higher
rental levels in their respective markets. Debt Balances: Commercial Paper
Program – The Company may borrow up to a maximum of $1.5 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 December 3, 2030. 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 $1.5 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, 2026
─────────────────────────────────────────────────────────────────────
Unsecured revolving credit facility $ 2,500,000
commitment
Commercial paper balance outstanding (668,000 )
Unsecured revolving credit facility —
balance outstanding
Other restricted amounts (3,464 )
Unsecured revolving credit facility $ 1,828,536
availability
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 2026 Earnings Release 29
Table of Contents
Equity ResidentialAdditional 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 3.0% 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 3.0% 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 $250-$600 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 Quarter Ended
June 30, 2026 June 30, 2026
──────────────────────────────────────────────────────────────────────────────
Net Gain (Loss)
on Sales of $ (16,776 ) $ (16,744 )
Real Estate
Properties
Accumulated
Depreciation (55,199 ) (55,199 )
Gain
Economic Gain $ (71,975 ) $ (71,943 )
(Loss)
2nd Quarter 2026 Earnings Release 30
Table of Contents
Equity ResidentialAdditional 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 2018White 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
andamortization related to real estate. Adjustments for partially owned
consolidated and unconsolidated partnershipsand 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 expectedoperating 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
FFObegins 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 2026 Earnings Release 31
Table of Contents
Equity ResidentialAdditional 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 .
Actu… Actu…
June June Actu… Actu…
YTD YTD Q2 Q2
2026 2025 2026 2025
Per Per Per Per
Share Share Share Share
──────────────────────────────────────────────────────────────────────────────
EPS
– $ 0.54 $ 1.18 $ 0.30 $ 0.50
Dil…
Dep… 1.30 1.29 0.65 0.63
exp…
Net
(ga…
loss 0.04 (0.… ) 0.05 (0.… )
on
sal…
Imp…
–
ope… — — — —
real
est…
ass…
FFO
per
sha… 1.88 1.92 1.00 0.98
–
Dil…
Adj…
(1):
Imp…
–
non… — — — —
real
est…
ass…
Wri…
of — 0.01 — —
pur…
cos…
Debt
ext…
and
pre… — — — —
sha…
red…
(ga…
los…
Non…
ass… (0.… ) — (0.… ) —
(ga…
los…
Oth…
mis… 0.16 0.01 0.05 0.01
ite…
Nor…
FFO
per $ 2.01 $ 1.94 $ 1.02 $ 0.99
sha…
–
Dil…
(1) See Adjustments from FFO to Normalized FFO for additional detail. 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% Physical 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 net 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 and further allocated between Residential same store and
Non-Residential same store results (see Same Store Results ):
Six
Mont… Quar…
Ended Ended
June June
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 210,… $ 463,… $ 117,… $ 198,…
inc…
Adj…
Pro… 73,2… 70,6… 38,1… 34,7…
man…
Gen…
and 33,5… 36,7… 16,6… 18,5…
adm…
Dep… 493,… 497,… 246,… 240,…
Net
(ga…
loss
on
sal… 16,7… (212… ) 16,7… (58,… )
of
real
est…
pro…
Int…
and (15,… ) (3,8… ) (12,… ) (2,1… )
oth…
inc…
Oth… 50,7… 8,961 10,0… 4,805
exp…
Int…
Exp…
inc… 159,… 147,… 82,4… 75,3…
net
Amo…
of
def… 4,290 4,247 2,145 2,103
fin…
cos…
Inc…
and
oth… 833 829 411 407
tax
exp…
(be…
(In…
loss
from
inv… 4,360 11,4… 2,318 4,996
in
unc…
ent…
Net
(ga…
loss
on — 78 — 11
sal…
of
land
par…
Tot… $ 1,03… $ 1,02… $ 520,… $ 520,…
NOI
2nd Quarter 2026 Earnings Release 32
Table of Contents
Equity ResidentialAdditional 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)
Six
Months Quarter
Rental Ended Ended
incom… 2026 June 30, 2025 2026 June 30, 2025
──────────────────────────────────────────────────────────────────────────────
Resid…
same $ 1,438,5… $ 1,407,… $ 724,289 $ 709,406
store
Non-R…
same 51,677 52,850 25,128 26,120
store
Total
same 1,490,2… 1,460,… 749,417 735,526
store
Non-s… 74,620 69,204 35,632 33,301
store…
Total
rental 1,564,8… 1,529,… 785,049 768,827
income
Opera…
expen…
Resid…
same 469,973 455,047 232,096 225,407
store
Non-R…
same 16,173 15,154 7,832 7,536
store
Total
same 486,146 470,201 239,928 232,943
store
Non-s… 45,547 34,130 25,083 15,663
store…
Total
opera… 531,693 504,331 265,011 248,606
expen…
NOI:
Resid…
same 968,625 952,536 492,193 483,999
store
Non-R…
same 35,504 37,696 17,296 18,584
store
Total
same 1,004,1… 990,232 509,489 502,583
store
Non-s… 29,073 35,074 10,549 17,638
store…
Total $ 1,033,2… $ 1,025,… $ 520,038 $ 520,221
NOI
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 2025 and 2026, plus any
properties in lease-up and not stabilized as of January 1, 2025. Unless
otherwise noted, includes both Residential and Non-Residential operations for
these properties. 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 :
Insurance – Includes third-party insurance premiums, broker fees and other
insurance-related procurement fees along with an allocation of estimated
uninsured losses. 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.
2nd Quarter 2026 Earnings Release 33
Table of Contents
Equity ResidentialAdditional 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)
Same Store Properties– For annual comparisons, primarily includes all properties
acquired or completed that are stabilized prior to January 1, 2025, less
properties subsequently sold. Properties are included in Same Store when they
are stabilized for all of the current and comparable periods presented. Unless
otherwise noted, includes both Residential and Non-Residential operations for
these properties.
Same Store Residential Revenues–Revenues from our Residential Same Store
Properties only 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 inSame Store Resultsand 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 2026 NOI for
stabilized properties and projected annual NOI at stabilization (defined as
having achieved 90% Physical 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.
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. Retention rate
is the opposite of Turnover.
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.
Weighted Average Coupons– Contractual interest rate for each debt instrument
weighted by principal balances as of June 30, 2026. 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, 2026 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 2026 Earnings Release 34