Equity Residential(US:EQR)2024-08-01 20:15Financial Performance - Net income attributable to common shares for the six months ended June 30, 2024, was $470,924 thousand, compared to $349,693 thousand for the same period in 2023, marking an increase of approximately 34.6%[24] - Earnings per share (EPS) for the six months ended June 30, 2024, was $1.24, up from $0.92 in the same period of 2023, indicating a growth of approximately 34.78%[24] - Comprehensive income for the six months ended June 30, 2024, was $489,797 thousand, compared to $371,188 thousand for the same period in 2023, representing an increase of approximately 32.0%[26] - Net income for the six months ended June 30, 2024, was $488,587, compared to $364,933 in 2023, representing a 33.9% increase[29] - Net income attributable to controlling interests for the six months ended June 30, 2024, was $473,270,000, up from $351,238,000 in 2023, representing a 35% increase[39] - The Company reported a net income of $488,587,000 for the six months ended June 30, 2024, compared to $364,933,000 for the same period in 2023, representing a 33.9% increase[136] Revenue and Income Sources - Rental income for the six months ended June 30, 2024, increased to $1,464,981 thousand, up from $1,422,397 thousand in the same period of 2023, reflecting a growth of about 2.98%[24] - The company reported a net gain on sales of real estate properties of $227,994 thousand for the six months ended June 30, 2024, compared to $100,122 thousand in the same period of 2023, reflecting a significant increase of approximately 127.5%[24] - Total lease revenue for the six months ended June 30, 2024, was $1,400,453 thousand, an increase from $1,360,948 thousand for the same period in 2023, reflecting a growth of approximately 2.9%[98] - Same store rental income increased by 3.5% year-over-year, reaching $1.43 billion for the six months ended June 30, 2024[162] Assets and Liabilities - Total assets decreased to $19,779,568 thousand as of June 30, 2024, from $20,034,564 thousand as of December 31, 2023, representing a decline of approximately 1.27%[22] - Total liabilities decreased to $8,272,303 thousand as of June 30, 2024, from $8,456,188 thousand as of December 31, 2023, a reduction of about 2.18%[22] - The company’s investment in real estate, net, was $18,634,037 thousand as of June 30, 2024, down from $18,902,301 thousand as of December 31, 2023, a decrease of approximately 1.42%[22] - Cash and cash equivalents decreased to $38,298 thousand as of June 30, 2024, from $50,743 thousand as of December 31, 2023, a decline of about 24.5%[22] Cash Flow and Financing - Net cash provided by operating activities increased to $817,968 in 2024 from $745,980 in 2023, reflecting a growth of 9.6%[29] - The company reported a net cash used for financing activities of $(817,185) in 2024, compared to $(487,231) in 2023, indicating an increase in cash outflow[31] - The Company had approximately $2.3 billion in readily available liquidity as of June 30, 2024, positioning it well to meet future obligations[181] - The Company had total mortgage notes payable of $1,634,838,000 as of June 30, 2024, with a weighted average interest rate of 3.86%[105][106] Investments and Acquisitions - During the six months ended June 30, 2024, the company acquired rental properties for a total purchase price of $62,595 thousand, including 160 apartment units[85] - The company disposed of 5 rental properties for a sales price of $334,000 thousand, resulting in a net gain of $227,994 thousand[87] - The Company has invested approximately $40.5 million in ten separate real estate technology and other fund investments, with remaining commitments of about $17.5 million as of June 30, 2024[125] Shareholder Returns and Distributions - Distributions declared per common share increased from $1.325 to $1.35 for the quarter ended June 30, 2024[36] - The Company declared a dividend of $0.675 per share/unit for Q1 and Q2 2024, representing a 2.0% annualized increase over 2023[190] - Total dividends paid in July 2024 amounted to $263.7 million, excluding distributions on Partially Owned Properties[191] Operational Metrics - Total expenses for the six months ended June 30, 2024, were $1,029,039, compared to $1,006,470 in 2023, reflecting a 2.2% increase[43] - The total net operating income (NOI) for the six months ended June 30, 2024, was $989,355,000, up from $950,298,000 in 2023, indicating a growth of 4.1%[136] - Same store NOI for Southern California increased to $254,346,000 in 2024 from $240,604,000 in 2023, reflecting a 5.7% rise[136] Market and Economic Conditions - The Company expects continued demand across its markets, supported by a solid job market and high employment for its target demographic[178] - The Company does not anticipate that the outcome of the ongoing legal matters will have a material adverse effect on its financial condition[131] Legal and Regulatory Matters - The Company is involved in ongoing legal proceedings related to antitrust violations, with motions to dismiss denied, but believes the lawsuits are without merit[130] - The Company has elected taxable REIT subsidiary status for certain corporate subsidiaries, which will incur federal and state income taxes on taxable income[65] Accounting and Compliance - The Company’s critical accounting policies and estimates have not changed materially from the previous year[196] - Market risk has not changed materially from the previous reporting period[202]