Equity Residential(US:EQR)2024-11-04 21:16Financial Performance - Net income for the quarter ended September 30, 2024, was $148,517 thousand, compared to $181,286 thousand for the same quarter in 2023, showing a decrease of about 18.1%[17] - Net income for the nine months ended September 30, 2024, was $637,104, compared to $546,219 for the same period in 2023, representing an increase of approximately 16.6%[21] - Comprehensive income for the nine months ended September 30, 2024, was $634,934 thousand, compared to $553,865 thousand for the same period in 2023, reflecting an increase of approximately 14.6%[18] - Net income attributable to controlling interests for the nine months ended September 30, 2024, was $616,716,000, compared to $523,746,000 for the same period in 2023, representing an increase of approximately 17.7%[25] - Net income available to Units – General Partner for the nine months ended September 30, 2024, was $614,014,000, compared to $521,428,000 for the same period in 2023, representing an increase of approximately 17.7%[39] - The total net operating income (NOI) for the nine months ended September 30, 2024, was $1.5 billion, compared to $1.4 billion for the same period in 2023, reflecting a year-over-year increase of approximately 3.8%[117] Revenue and Income Sources - Rental income for the quarter ended September 30, 2024, was $748,348 thousand, up from $724,067 thousand for the same quarter in 2023, representing an increase of about 3.3%[17] - Rental income for the nine months ended September 30, 2024, was $2,213,329 thousand, a 3.1% increase from $2,146,464 thousand for the same period in 2023[30] - Total lease revenue for the nine months ended September 30, 2024, was $2,115,266 thousand, compared to $2,052,647 thousand for the same period in 2023, reflecting an increase of approximately 3.1%[80] - Interest and other income for the nine months ended September 30, 2024, was $26,501 thousand, significantly higher than $11,296 thousand for the same period in 2023, representing a 134.3% increase[30] Assets and Liabilities - Total assets increased to $20,925,821 thousand as of September 30, 2024, compared to $20,034,564 thousand as of December 31, 2023, reflecting a growth of approximately 4.4%[15] - Total liabilities rose to $9,520,502 thousand as of September 30, 2024, compared to $8,456,188 thousand as of December 31, 2023, indicating an increase of approximately 12.6%[15] - Total shareholders' equity decreased to $10,853,975 thousand as of September 30, 2024, from $11,085,828 thousand as of December 31, 2023, a decrease of about 2.1%[16] - Cash and cash equivalents decreased to $28,610 thousand as of September 30, 2024, down from $50,743 thousand as of December 31, 2023, a decline of approximately 43.5%[15] Investments and Acquisitions - The company invested $1,320,592 in real estate acquisitions during the nine months ended September 30, 2024, compared to $324,497 in the same period of 2023, indicating a significant increase of approximately 307%[22] - The company acquired 15 rental properties for a total purchase price of $1,317,845 thousand, with $154,777 thousand allocated to land and $1,152,251 thousand to depreciable property[68] - The company disposed of 6 rental properties for a sales price of $365,500 thousand, resulting in a net gain of $227,829 thousand during the same period[69] Cash Flow and Financing Activities - Net cash provided by operating activities increased to $1,219,382 for the nine months ended September 30, 2024, from $1,188,524 in 2023, reflecting a growth of about 2.6%[21] - Net cash used for investing activities was $(1,363,616) for the nine months ended September 30, 2024, compared to $(468,355) in 2023, showing a decline in cash flow of about 191%[22] - Net cash provided by financing activities was $130,798 for the nine months ended September 30, 2024, a recovery from $(730,614) in the same period of 2023[22] Shareholder Information - Common shares balance at the end of the period increased to $3,794,000 from $3,797,000, with a net increase of 2,829 shares issued through the Employee Share Purchase Plan[25] - Common share distributions increased to $2.025 per share from $1.9875 per share, reflecting a growth of 1.9%[26] - The Company declared a dividend of $0.675 per share/unit for each quarter of 2024, representing a 2.0% annualized increase over 2023[167] Debt and Interest - The weighted average interest rate for the Company's debt was 3.85% as of September 30, 2024, with interest rate ranges from 0.10% to 5.25%[86] - The Company had total mortgage notes payable of $1,633,414 thousand as of September 30, 2024, with an estimated fair value of $1,556,724 thousand[97] - The Company has a $2.5 billion unsecured revolving credit facility maturing on October 26, 2027, with a weighted average interest rate of 6.14% for the nine months ended September 30, 2024[89] Market and Operational Insights - The company’s focus remains on acquiring and managing residential properties in dynamic cities, targeting affluent long-term renters[127] - The Company is currently evaluating the impact of the new segment reporting standards effective January 1, 2024, on its segment disclosures[51] - The Company’s primary business involves the management of multifamily residential properties, which accounted for less than 4.0% of total revenues from non-residential activities for the nine months ended September 30, 2024[114]