Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-12252 (Equity Residential) Commission File Number: 0-24920 (ERP Operating Limited Partnership) EQUITY RESIDENTIAL ERP OPER ...

Financial Data and Key Metrics Changes - The company reported same-store revenue growth of 9.2% in Q1 2023, exceeding expectations, primarily due to improved delinquency and strong fundamentals [12][14] - Same-store expense growth was 7.2%, slightly above expectations, driven by higher repairs and maintenance costs [19][20] - The board raised the common share dividend by 6% on an annualized basis, reflecting confidence in business prospects [6] Business Line Data and Key Metrics Changes - The company experienced strong revenue growth across its portfolio, particularly in New York, which saw over 19% same-store revenue growth [15] - The Sunbelt markets, including Dallas-Fort Worth, Austin, and Atlanta, showed higher relative supply and more impact, but Atlanta remained strong with double-digit revenue growth [19][9] Market Data and Key Metrics Changes - The unemployment rate for college-educated individuals remains low, supporting the affluent renter demographic [7] - Only 8% of residents who moved out in Q1 2023 purchased homes, down from 12% in Q1 2022, indicating continued demand for rentals [8] Company Strategy and Development Direction - The company plans to leverage technology and centralization to improve customer and employee experiences while managing payroll costs [10][22] - The focus remains on expanding the portfolio in markets with manageable competitive supply, particularly in coastal markets [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's resilience despite economic uncertainties, noting solid demand and low turnover rates [15][16] - The company anticipates that Q1 2023 will be the highest reported same-store revenue growth, with more moderate growth expected in subsequent quarters [14] Other Important Information - The company sold a collection of 25-year-old properties in Los Angeles for approximately $135 million and acquired a newly developed property in Atlanta for about $79 million [10][11] - The company is focused on innovation and technology evolution, expecting a positive NOI impact of over $10 million in 2023 [22][24] Q&A Session Summary Question: Same-store revenue guidance and expected drop-off - Management indicated that the drop-off in same-store revenue growth is expected to be more ratable throughout the year, with Q1 being the high point [26] Question: Pricing power and market rent growth - Management noted that while rent growth might be slightly muted, the portfolio is positioned well for the peak leasing season with a blended rate for April at 4% [28][29] Question: Real estate taxes and future outlook - Management stated that there is currently not much chatter about increased taxation on apartments, and they feel good about 2023 [31][32] Question: Pricing power in Denver and expansion markets - Management acknowledged supply pressure in Denver but noted suburban portfolios are performing well, while Atlanta is exceeding expectations [34] Question: Bad debt and collections process - Management reported that bad debt improved in March and April, and they are gradually working through past balances with a focus on collections [46][50] Question: Impact of L.A. mansion tax on property sales - Management indicated that the new tax could impact transactions, but they have alternative strategies to reach their portfolio goals [51][53] Question: Concessions in urban markets - Concessions remain concentrated in urban centers like Seattle and San Francisco, but there are signs of demand picking up [55][56] Question: Job losses and turnover impact - Management noted low turnover rates and did not see significant job loss impacts on resident behavior, particularly in tech-heavy markets [62][63]

PART I [Item 1. Business](index=6&type=section&id=Item%201%2E%20Business) EQR is an S&P 500 REIT focused on managing high-quality residential properties in dynamic U.S. cities, operating through its 96.8%-owned subsidiary ERPOP - Equity Residential (EQR) is a REIT focused on the acquisition, development, and management of residential properties in affluent urban and suburban markets[19](index=19&type=chunk) - EQR operates as an UPREIT, with all property ownership and business operations conducted through ERP Operating Limited Partnership (ERPOP), in which EQR held a **96.8% ownership interest** as of December 31, 2022[8](index=8&type=chunk)[20](index=20&type=chunk) - The company's core markets include Boston, New York, Washington, D.C., Southern California, San Francisco, and Seattle, with expansion efforts in Denver, Atlanta, Dallas/Ft. Worth, and Austin[23](index=23&type=chunk)[26](index=26&type=chunk) - EQR's investment strategy targets markets with large economic drivers, strong high-quality job growth, and balanced apartment supply and demand, catering to key demographics[26](index=26&type=chunk) - The company emphasizes ESG initiatives, having issued **two green bonds** to support sustainable projects and incorporating ESG goals into executive compensation[30](index=30&type=chunk)[32](index=32&type=chunk)[34](index=34&type=chunk) - As of 2022, the company's workforce of approximately 2,400 employees is **63.0% ethnically diverse** and **36.0% female**, achieving a strong employee engagement score of 78% favorability[36](index=36&type=chunk)[38](index=38&type=chunk) [Item 1A. Risk Factors](index=12&type=section&id=Item%201A%2E%20Risk%20Factors) The company faces risks from real estate illiquidity, geographic concentration, competition, capital market disruptions, regulatory changes, and potential uninsured losses - The company's property portfolio is predominantly concentrated in established coastal markets, making it vulnerable to unfavorable local economic conditions or rent control laws[46](index=46&type=chunk) - The short-term nature of apartment leases exposes the company more quickly to the effects of declining market rents, potentially increasing operational volatility[49](index=49&type=chunk) - The adoption or expansion of rent control, rent stabilization, or eviction moratoriums could limit the company's ability to raise rents and adversely impact property values[73](index=73&type=chunk) - **Failure to qualify as a REIT** would subject the company to U.S. federal income tax at regular corporate rates, significantly reducing funds available for distribution[79](index=79&type=chunk)[80](index=80&type=chunk) - The company faces significant general risks including pandemics, substantial inflation, and cybersecurity incidents that could disrupt operations and compromise information[91](index=91&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk) - Insurance policies carry substantial deductibles and may not cover all losses from catastrophic events, potentially exposing the company to **significant uninsured losses**[104](index=104&type=chunk)[106](index=106&type=chunk)[108](index=108&type=chunk) [Item 1B. Unresolved Staff Comments](index=24&type=section&id=Item%201B%2E%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - There are no unresolved staff comments[112](index=112&type=chunk) [Item 2. Properties](index=24&type=section&id=Item%202%2E%20Properties) As of year-end 2022, the company's portfolio comprised 308 properties with 79,597 apartment units, concentrated in key established and expansion markets Portfolio Summary as of December 31, 2022 | Ownership Type | Properties | Apartment Units | | :--- | :--- | :--- | | Wholly Owned Properties | 293 | 76,483 | | Partially Owned Properties – Consolidated | 15 | 3,114 | | **Total** | **308** | **79,597** | Portfolio Breakdown by Market (as of Dec 31, 2022) | Market/Metro Area | Properties | Apartment Units | % of Stabilized Budgeted NOI | Average Rental Rate ($) | | :--- | :--- | :--- | :--- | :--- | | **Established Markets** | **289** | **73,902** | **95.1%** | **3,016** | | Southern California | 91 | 22,165 | 27.4% | 2,772 | | San Francisco | 44 | 11,790 | 15.9% | 3,229 | | Washington, D.C. | 47 | 14,716 | 15.3% | 2,531 | | New York | 34 | 8,536 | 14.0% | 4,378 | | Boston | 27 | 7,170 | 11.5% | 3,373 | | Seattle | 46 | 9,525 | 11.0% | 2,575 | | **Expansion Markets** | **19** | **5,695** | **4.9%** | **2,153** | | Denver | 8 | 2,498 | 2.7% | 2,372 | | Atlanta | 4 | 1,215 | 1.1% | 2,120 | | Dallas/Ft. Worth | 4 | 1,241 | 0.7% | 1,904 | | Austin | 3 | 741 | 0.4% | 1,853 | | **Total** | **308** | **79,597** | **100.0%** | **2,956** | - The Same Store portfolio consisted of **283 properties** and **72,872 apartment units** at year-end 2022[119](index=119&type=chunk) - As of December 31, 2022, the company had 8 total development projects, including 2 consolidated projects with a total budgeted cost of **$260.6 million** and 6 unconsolidated projects with a total budgeted cost of **$610.9 million**[122](index=122&type=chunk) [Item 3. Legal Proceedings](index=27&type=section&id=Item%203%2E%20Legal%20Proceedings) The company does not believe any pending or threatened litigation would materially affect its financial condition - As of December 31, 2022, the Company does not believe there is any litigation pending or threatened that would have a **material adverse effect** on the Company[123](index=123&type=chunk) [Item 4. Mine Safety Disclosures](index=27&type=section&id=Item%204%2E%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[123](index=123&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=29&type=section&id=Item%205%2E%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) EQR's Common Shares trade on the NYSE, and the company details share count, holders, and recent share-for-unit exchanges - The Company's Common Shares trade on the NYSE under the symbol EQR, with **378,602,684 Common Shares outstanding** as of February 10, 2023[124](index=124&type=chunk) - In Q4 2022, EQR issued **414,871 Common Shares** in exchange for an equal number of OP Units from various limited partners of ERPOP[125](index=125&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%207%2E%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Strong fundamentals drove a 14.1% increase in same-store NOI, though lower property sale gains caused a decrease in diluted EPS to $2.05 [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Diluted EPS decreased to $2.05 in 2022 from $3.54 in 2021, primarily due to lower gains on property sales, while total NOI grew 15.5% Portfolio Rollforward 2021-2022 | Period | Activity | Properties | Apartment Units | Value ($ in thousands) | Cap Rate/Yield | | :--- | :--- | :--- | :--- | :--- | :--- | | **2021** | **Acquisitions** | **17** | **4,747** | **$1,709,379** | **3.7% - 4.0%** | | | **Dispositions** | **(14)** | **(3,053)** | **($1,716,775)** | **(3.7%)** | | **2022** | **Acquisitions** | **1** | **172** | **$113,000** | **3.5%** | | | **Dispositions** | **(3)** | **(945)** | **($746,150)** | **(3.4%)** | Reconciliation of Diluted EPS (2021 to 2022) | Description | Per Share/Unit Impact ($) | | :--- | :--- | | **Diluted EPS for full year 2021** | **3.54** | | Property NOI | 0.60 | | Interest expense | (0.02) | | Corporate overhead | (0.03) | | Net gain/loss on property sales | (1.95) | | Non-operating asset gains/losses | (0.07) | | Impairment – non-operating real estate assets | 0.04 | | Depreciation expense | (0.11) | | Other | 0.05 | | **Diluted EPS for full year 2022** | **2.05** | NOI Comparison (2022 vs 2021, $ in thousands) | Category | 2022 | 2021 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Same store NOI** | **1,731,286** | **1,517,100** | **214,186** | **14.1%** | | Non-same store/other NOI | 131,617 | 96,260 | 35,357 | 36.7% | | **Total NOI** | **1,862,903** | **1,613,360** | **249,543** | **15.5%** | 2022 Same Store Operating Statistics (vs. 2021) | Metric | 2022 | Change from 2021 | | :--- | :--- | :--- | | **Total Revenues** | $2,533,577 (in thousands) | +10.6% | | **Total Expenses** | $802,291 (in thousands) | +3.6% | | **NOI** | $1,731,286 (in thousands) | +14.1% | | **Average Rental Rate** | $2,898 | +10.4% | | **Physical Occupancy** | 96.4% | +0.3% | | **Turnover** | 42.8% | (1.9%) | [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with approximately $2.4 billion available, supported by a healthy capital structure and ample financial flexibility - The company reports approximately **$2.4 billion in readily available liquidity**, a strong balance sheet, and limited near-term maturities[163](index=163&type=chunk) Statements of Cash Flows Summary ($ in thousands) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | **Operating activities** | $1,454,756 | $1,260,184 | | **Investing activities** | $107,792 | ($434,620) | | **Financing activities** | ($1,785,612) | ($565,056) | Capital Structure as of December 31, 2022 ($ in thousands) | Component | Amount | % of Total | | :--- | :--- | :--- | | Total Debt | $7,425,722 | 24.3% | | Total Equity | $23,097,987 | 75.7% | | **Total Market Capitalization** | **$30,523,709** | **100.0%** | - As of December 31, 2022, **87.1% of the company's investment in real estate**, valued at $24.5 billion, was unencumbered, providing significant flexibility[176](index=176&type=chunk) Credit Ratings as of February 10, 2023 | Entity/Security | Standard & Poor's | Moody's | | :--- | :--- | :--- | | ERPOP's long-term senior debt | A- | A3 | | ERPOP's short-term commercial paper | A-2 | P-2 | | EQR's long-term preferred equity | BBB | Baa1 | [Critical Accounting Policies and Estimates](index=45&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company identifies impairment of long-lived assets and allocation of purchase price for acquisitions as its two critical accounting policies - The company's evaluation of its long-lived assets for impairment is a critical accounting policy, involving significant judgments about operational performance and market conditions[201](index=201&type=chunk) - The allocation of purchase price for acquired investment properties is another critical policy, using relative fair values to allocate the price to tangible and intangible assets[202](index=202&type=chunk) [Funds From Operations and Normalized Funds From Operations](index=46&type=section&id=Funds%20From%20Operations%20and%20Normalized%20Funds%20From%20Operations) For 2022, FFO available to Common Shares and Units increased to $1.37 billion, with Normalized FFO also rising to $1.37 billion FFO and Normalized FFO Reconciliation ($ in thousands) | Metric | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net income available to Common Shares and Units | $800,131 | $1,375,660 | $944,556 | | **FFO available to Common Shares and Units** | **$1,373,917** | **$1,150,632** | **$1,238,145** | | **Normalized FFO available to Common Shares and Units** | **$1,371,828** | **$1,161,364** | **$1,256,368** | [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=47&type=section&id=Item%207A%2E%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate changes, which affect debt costs and fair values, with a hypothetical 100 bps rate increase adding $4.7 million to annual interest expense - The company's main market risk is from changes in interest rates, impacting debt refinancing, floating-rate debt, and derivatives[206](index=206&type=chunk) - As of December 31, 2022, total variable rate debt was **$0.5 billion**, or 6.4% of total debt, and a 100 basis point rate increase would have increased annual interest expense by an estimated **$4.7 million**[209](index=209&type=chunk) - The fair value of the company's **$7.0 billion in fixed-rate debt** is sensitive to interest rate changes; a 100 basis point decrease would have increased its fair value by approximately **$397.5 million**[210](index=210&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=48&type=section&id=Item%208%2E%20Financial%20Statements%20and%20Supplementary%20Data) This section refers to the Index to Consolidated Financial Statements and Schedule on page F-1 of the Form 10-K - This item directs the reader to the full financial statements and schedules beginning on page F-1 of the report[214](index=214&type=chunk) [Item 9A. Controls and Procedures](index=48&type=section&id=Item%209A%2E%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2022 - For both Equity Residential and ERP Operating Limited Partnership, management concluded that **disclosure controls and procedures were effective** as of December 31, 2022[215](index=215&type=chunk)[220](index=220&type=chunk) - Management concluded that **internal control over financial reporting was effective** as of December 31, 2022, based on the COSO framework, an assessment audited by Ernst & Young LLP[216](index=216&type=chunk)[218](index=218&type=chunk)[221](index=221&type=chunk) - No changes in internal control over financial reporting occurred during Q4 2022 that have materially affected, or are reasonably likely to materially affect, the company's internal controls[219](index=219&type=chunk)[224](index=224&type=chunk) PART III [Items 10-14. Corporate Governance, Compensation, and Related Matters](index=50&type=section&id=Items%2010-14) Information for these items is incorporated by reference from the company's Proxy Statement, with equity compensation plan details provided - Information for Items 10, 11, 12, 13, and 14 is **incorporated by reference** from the company's Proxy Statement[227](index=227&type=chunk) Equity Compensation Plan Information as of December 31, 2022 | Plan Category | Securities to be issued upon exercise (a) | Weighted-average exercise price (b) | Securities remaining available for future issuance (c) | | :--- | :--- | :--- | :--- | | **Equity compensation plans approved by shareholders** | **4,061,360** | **$62.60** | **11,407,237** | | Equity compensation plans not approved by shareholders | N/A | N/A | N/A | PART IV [Item 15. Exhibit and Financial Statement Schedules](index=51&type=section&id=Item%2015%2E%20Exhibit%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed as part of the report, directing readers to the relevant indices - This item lists the documents filed as part of the report, including financial statements and exhibits[233](index=233&type=chunk) Financial Statements and Supplementary Data [Report of Independent Registered Public Accounting Firm](index=59&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Ernst & Young LLP issued unqualified opinions on the financial statements and internal controls, identifying 'Impairment of Long-Lived Assets' as a Critical Audit Matter - The independent auditor, Ernst & Young LLP, issued an **unqualified opinion**, stating that the financial statements for both Equity Residential and ERP Operating Limited Partnership present fairly their financial position[252](index=252&type=chunk)[262](index=262&type=chunk) - The auditor also issued an **unqualified opinion on the effectiveness** of each entity's internal control over financial reporting as of December 31, 2022[253](index=253&type=chunk)[263](index=263&type=chunk) - A **Critical Audit Matter** was identified concerning the 'Impairment of Long-Lived Assets' due to the complex and subjective judgments required by management[256](index=256&type=chunk)[257](index=257&type=chunk)[266](index=266&type=chunk) [Consolidated Financial Statements](index=65&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show total assets of $20.2 billion and net income of $807.0 million for 2022, with net income decreasing due to lower gains on real estate sales Consolidated Balance Sheet Data (Equity Residential, $ in thousands) | Account | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Investment in real estate, net | $19,060,904 | $19,918,624 | | **Total assets** | **$20,218,262** | **$21,169,241** | | Total liabilities | $8,517,310 | $9,483,056 | | **Total equity** | **$11,382,679** | **$11,187,208** | Consolidated Statement of Operations Data (Equity Residential, $ in thousands) | Account | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Rental income | $2,735,180 | $2,463,997 | $2,571,705 | | Total expenses | $1,923,459 | $1,843,570 | $1,785,522 | | Net gain on sales of real estate | $304,325 | $1,072,183 | $531,807 | | **Net income** | **$806,995** | **$1,396,714** | **$962,501** | [Notes to Consolidated Financial Statements](index=81&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail key accounting policies, debt structure, equity changes, share incentive plans, and segment performance - The company's significant accounting policies include treating property acquisitions as asset acquisitions and evaluating long-lived assets for impairment quarterly (Note 2)[323](index=323&type=chunk)[328](index=328&type=chunk) - As of Dec 31, 2022, the company had **378.4 million Common Shares** and **12.4 million Units** outstanding, with a redemption value of $318.3 million for Redeemable Noncontrolling Interests (Note 3)[364](index=364&type=chunk)[368](index=368&type=chunk) - The company has a **$2.5 billion unsecured revolving credit facility** and a **$1.0 billion commercial paper program**, with $2.37 billion available on the credit facility at year-end (Note 9)[421](index=421&type=chunk)[423](index=423&type=chunk) - The company recognized total compensation equity of **$33.8 million** in 2022 related to its share incentive plans, with 4.1 million options outstanding (Note 12)[466](index=466&type=chunk)[471](index=471&type=chunk) [Schedule III - Real Estate and Accumulated Depreciation](index=121&type=section&id=Schedule%20III%20-%20Real%20Estate%20and%20Accumulated%20Depreciation) This schedule details the company's $28.1 billion gross investment in real estate and $9.0 billion in accumulated depreciation as of year-end 2022 Real Estate Summary as of December 31, 2022 | Category | Investment in Real Estate, Gross | Accumulated Depreciation | Investment in Real Estate, Net | Encumbrances | | :--- | :--- | :--- | :--- | :--- | | **Total Unencumbered Properties** | $24,476,818,491 | ($7,904,362,412) | $16,572,456,079 | $— | | **Total Encumbered Properties** | $3,611,935,002 | ($1,123,487,437) | $2,488,447,565 | $1,953,438,085 | | **Total Consolidated** | **$28,088,753,493** | **($9,027,849,849)** | **$19,060,903,644** | **$1,953,438,085** |

Equity Residential (NYSE:EQR) Q4 2022 Results Conference Call February 10, 2023 11:00 AM ET Company Participants Marty McKenna - IR Mark Parrell - President and CEO Michael Manelis - COO Bob Garechana - CFO Alec Brackenridge - CIO Conference Call Participants Nick Joseph - Citi John Pawlowski - Green Street Chandni Luthra - Goldman Sachs Steve Sakwa - Evercore ISI John Kim - BMO Capital Markets Adam Kramer - Morgan Stanley Haendel St. Juste - Mizuho Jeff Spector - Bank of America Nick Yulico - Scotiabank Al ...

Part I [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements for EQR and ERPOP, detailing balance sheets, operations, cash flows, and equity changes, with notes [Financial Statements of Equity Residential (EQR)](index=4&type=section&id=Financial%20Statements%20of%20Equity%20Residential) EQR's financial statements show total assets decreased to **$20.27 billion**, with nine-month net income at **$641.6 million** and diluted EPS at **$1.63** EQR Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$20,265,405** | **$21,169,241** | | Total Liabilities | $8,633,131 | $9,483,056 | | **Total Equity** | **$11,261,737** | **$11,187,208** | EQR Consolidated Statement of Operations Highlights (in thousands, except per share data) | Metric | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Rental Income | $2,035,477 | $1,818,867 | | Net Gain on Sales of Real Estate | $304,346 | $587,623 | | **Net Income** | **$641,641** | **$835,736** | | **Diluted EPS** | **$1.63** | **$2.14** | EQR Consolidated Cash Flow Highlights (in thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $1,120,228 | $978,213 | | Net Cash from Investing Activities | $243,336 | ($309,589) | | Net Cash from Financing Activities | ($1,602,333) | ($541,603) | [Financial Statements of ERP Operating Limited Partnership (ERPOP)](index=13&type=section&id=Financial%20Statements%20of%20ERP%20Operating%20Limited%20Partnership) ERPOP's financial statements mirror EQR's assets and liabilities, with nine-month net income at **$641.6 million**, differing in capital structure ERPOP Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$20,265,405** | **$21,169,241** | | Total Liabilities | $8,633,131 | $9,483,056 | | **Total Capital** | **$11,261,737** | **$11,187,208** | ERPOP Consolidated Statement of Operations Highlights (in thousands, except per unit data) | Metric | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Rental Income | $2,035,477 | $1,818,867 | | Net Gain on Sales of Real Estate | $304,346 | $587,623 | | **Net Income** | **$641,641** | **$835,736** | | **Diluted EPU** | **$1.63** | **$2.14** | [Notes to Consolidated Financial Statements](index=21&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail the company's business structure, accounting policies, real estate transactions, debt, and segment performance - As of September 30, 2022, the company owned a portfolio of **308 properties** consisting of **79,594 apartment units**[83](index=83&type=chunk)[84](index=84&type=chunk) Real Estate Transactions (Nine Months Ended Sep 30, 2022) | Transaction Type | Properties | Apartment Units | Price (in thousands) | | :--- | :--- | :--- | :--- | | Acquisitions | 1 | 172 | $113,000 | | Dispositions | 3 | 945 | $746,150 | Debt Summary as of September 30, 2022 (in thousands) | Debt Type | Balance | % of Total | | :--- | :--- | :--- | | Secured | $1,967,827 | 26.2% | | Unsecured | $5,530,364 | 73.8% | | **Total Debt** | **$7,498,191** | **100.0%** | Same Store NOI Growth by Market (Nine Months Ended Sep 30, 2022 vs 2021) | Market | 2022 NOI (in thousands) | 2021 NOI (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Los Angeles | $248,775 | $216,369 | +15.0% | | San Francisco | $218,829 | $195,653 | +11.8% | | Washington, D.C. | $203,597 | $192,848 | +5.6% | | New York | $179,635 | $133,917 | +34.1% | | Seattle | $150,789 | $129,294 | +16.6% | | Boston | $134,637 | $116,475 | +15.6% | | **Total Same Store** | **$1,281,194** | **$1,111,032** | **+15.3%** | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=38&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong nine-month 2022 performance to healthy demand, resulting in **96.5% physical occupancy** and **15.3% same-store NOI growth** - For the nine months ended September 30, 2022, same-store NOI increased by **15.3%** compared to the prior year, driven by an **11.1%** increase in rental income and a **3.0%** increase in operating expenses[203](index=203&type=chunk) - Key operating drivers for 2022 performance include strong pricing, high physical occupancy of **96.5%**, and low resident turnover of **33.6%**[214](index=214&type=chunk)[215](index=215&type=chunk) - The company maintains a strong balance sheet with approximately **$2.3 billion** in readily available liquidity and **87.0%** of its real estate portfolio unencumbered as of September 30, 2022[218](index=218&type=chunk)[231](index=231&type=chunk) Reconciliation of Diluted EPS (YTD 2022 vs YTD 2021) | Component | Change in EPS | | :--- | :--- | | Diluted EPS for period ended 2021 | $2.14 | | Property NOI | $0.49 | | Net gain/loss on property sales | ($0.73) | | Depreciation expense | ($0.13) | | Other | ($0.14) | | **Diluted EPS for period ended 2022** | **$1.63** | [Quantitative and Qualitative Disclosures about Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company reports no material changes to its market risk disclosures since the 2021 Annual Report on Form 10-K - There have been no material changes to the company's market risk disclosures since the 2021 Form 10-K[242](index=242&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of September 30, 2022, with no material changes to internal control - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of September 30, 2022[243](index=243&type=chunk)[245](index=245&type=chunk) - No material changes to internal control over financial reporting occurred during the third quarter of 2022[244](index=244&type=chunk)[247](index=247&type=chunk) Part II [Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no pending or threatened litigation expected to have a material adverse effect - As of September 30, 2022, the company is not aware of any litigation that is reasonably expected to have a material adverse effect[248](index=248&type=chunk) [Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from the company's 2021 Annual Report on Form 10-K - No material changes to risk factors were reported from the company's 2021 Form 10-K[249](index=249&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q3 2022, EQR issued **6,572 Common Shares** for OP Units from limited partners, relying on a registration exemption - In Q3 2022, EQR issued **6,572 Common Shares** in exchange for **6,572 OP Units** from limited partners, utilizing a registration exemption[250](index=250&type=chunk) [Defaults Upon Senior Securities](index=50&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[251](index=251&type=chunk) [Other Information](index=50&type=section&id=Item%205.%20Other%20Information) The company reported no other information for this item - None[251](index=251&type=chunk) [Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q report, including executive plan amendments and CEO/CFO certifications

Equity Residential (NYSE:EQR) Q3 2022 Results Conference Call October 26, 2022 11:00 AM ET Company Participants Marty McKenna - Investor Relations Mark Parrell - President and Chief Executive Officer Michael Manelis - Chief Operating Officer Bob Garechana - Chief Financial Officer Conference Call Participants Nick Joseph - Citi Steve Sakwa - Evercore ISI Nick Yulico - Scotiabank Chandni Luthra - Goldman Sachs Haendel St. Juste - Mizuho Rich Anderson - SMBC Robyn Luu - Green Street Joshua Dennerlein - Bank o ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-12252 (Equity Residential) Commission File Number: 0-24920 (ERP Operating Limited Partnership) EQUITY RESIDENTIAL ERP OPERA ...

Equity Residential (NYSE:EQR) Q2 2022 Earnings Conference Call July 27, 2022 11:00 AM ET Company Participants Marty McKenna - Investor Relations Mark Parrell - President and Chief Executive Officer Michael Manelis - Chief Operating Officer Bob Garechana - Chief Financial Officer Alex Brackenridge - Chief Investment Officer Conference Call Participants Nick Joseph - Citi Chandni Luthra - Goldman Sachs Steve Sakwa - Evercore ISI John Pawlowski - Green Street Joshua Dennerlein - Bank of America Brad Heffern - ...

Equity Residential (NYSE:EQR) Q1 2022 Earnings Conference Call April 27, 2022 11:00 AM ET Company Participants Marty McKenna – Investor Relations Mark Parrell – President and Chief Executive Officer Michael Manelis – Chief Operating Officer Bob Garechana – Chief Financial Officer Alec Brackenridge – Chief Investment Officer Conference Call Participants Nick Joseph – Citi Steve Sakwa – Evercore ISI John Pawlowski – Green Street Rich Hill – Morgan Stanley Chandni Luthra – Goldman Sachs Nick Yulico – Scotiaban ...