_______________ þ Large accelerated filer Accelerated filero
SECURITIES AND EXCHANGE COMMISSION[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OFTHE SECURITIES EXCHANGE ACT OF 1934þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 20082010[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OFTHE SECURITIES EXCHANGE ACT OF 1934o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Illinois 36-3894853Illinois
(State or Other Jurisdiction of Incorporation or Organization) 36-3894853
(I.R.S. Employer Identification No.)Two North Riverside Plaza, Chicago, Illinois 60606
(Address of Principal Executive Offices) 60606
(Zip Code)
(Registrant’s Telephone Number, Including Area Code)7.57% Notes due August 15, 2026 New York Stock Exchange (Title of Each Class) (Name of Each Exchange on Which Registered)
(Title of Each Class)Xþ NooXþXþ Noo [ ]Xo Non-accelerated filerþ Smaller reporting companyo Non-accelerated filer (Do(Do not check if a smaller reporting company) Smaller reporting company__Xþ
2
| ||||||||
| PAGE | |||||||
| 4 | ||||||||
| 8 | ||||||||
| 15 | ||||||||
| 15 | ||||||||
| 17 | ||||||||
| 17 | ||||||||
| ||||||||
| ||||||||
| 18 | ||||||||
| 19 | ||||||||
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 21 | |||||||
| 42 | ||||||||
| 43 | ||||||||
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 43 | |||||||
| 43 | ||||||||
| 44 | ||||||||
| ||||||||
| ||||||||
| 45 | ||||||||
| 45 | ||||||||
Security Ownership of Certain Beneficial Owners and Management and Related | 45 | |||||||
Certain Relationships and Related Transactions, and Trustee Independence | 45 | |||||||
| 45 | ||||||||
| ||||||||
| ||||||||
| 46 | ||||||||
| EX-12 | ||||||||
| EX-21 | ||||||||
| EX-23.1 | ||||||||
| EX-31.1 | ||||||||
| EX-31.2 | ||||||||
| EX-32.1 | ||||||||
| EX-32.2 | ||||||||
3
in each of its markets.
| Properties | Units | |||
Wholly Owned Properties | 477 | 127,002 | ||
Partially Owned Properties: | ||||
Consolidated | 28 | 5,757 | ||
Unconsolidated | 41 | 9,776 | ||
Military Housing (Fee Managed) | 2 | 4,709 | ||
| 548 | 147,244 |
| Properties | Apartment Units | |||||||
| Wholly Owned Properties | 425 | 119,634 | ||||||
| Partially Owned Properties — Consolidated | 24 | 5,232 | ||||||
| Military Housing | 2 | 4,738 | ||||||
| 451 | 129,604 | |||||||
See also Note 19 in the Notes to Consolidated Financial Statements for additional discussion regarding the Operating Partnership’s segment disclosures.
Leveraging our size and scale in four critical ways:
Investinginvests in apartment communities located in strategically targeted markets with the goal of maximizing our risk adjusted total return (operating income plus capital appreciation) on invested capital.
Meetingto our shareholders. Revenue is maximized by driving qualified resident prospects to our properties, converting this traffic cost-effectively into new leases at the needshighest rent possible, keeping our residents satisfied and renewing their leases at yet higher rents. While we believe that it is our high-quality, well-located assets that bring our customers to us, it is our customer service that keeps them renting with us and recommending us to their friends.
4
Engaging, retaining and attracting the best employees by providing them with the education, resources and opportunities to succeed; and
Sharing resources, customers and best practices in property management and across the enterprise.
Owning a highly diversified portfolioour properties by investing in target markets definedthat are characterized by a combinationconditions favorable to multifamily property appreciation. These markets generally feature one or more of the following criteria:
High barrier-to-entry (low supply);
Strong economic predictors (high demand); and
| • | High barriers to entry where, because of land scarcity or government regulation, it is difficult or costly to build new apartment properties leading to low supply; | ||
| • | High single family home prices making our apartments a more economical housing choice; | ||
| • | Strong economic growth leading to household formation and job growth, which in turn leads to high demand for our apartments; and | ||
| • | An attractive quality of life leading to high demand and retention and allowing us to more readily increase rents. |
Attractive quality of life (high demand and retention).
Giving residents reasons to stay with the Operating Partnership by providing a range of product options available in our diversified portfolio and by enhancing their experience through our employees and our services.
Being open and responsive to market realities to take advantage of investment opportunities that align with our long-term vision.
Acquisition, Development and Disposition Strategies
The Operating Partnership anticipates that future property acquisitions, developments and dispositions will occur within the United States. Acquisitions and developments may be financed from various sources of capital, which may include retained cash flow, issuance of additional equity and debt securities, sales of properties, joint venture agreements and collateralized and uncollateralized borrowings. In addition, the Operating Partnership may acquire properties in transactions that include the issuance of limited partnership interests in the Operating Partnership (“OP Units”) as consideration for the acquired properties. Such transactions may, in certain circumstances, enable the sellers to defer, in whole or in part, the recognition of taxable income or gain that might otherwise result from the sales. ERPOP may also acquire land parcels to hold and/or sell based on market opportunities.
When evaluating potential The Operating Partnership may also seek to acquire properties by purchasing defaulted or distressed debt that encumbers desirable properties in the hope of obtaining title to property through foreclosure or deed-in-lieu of foreclosure proceedings. The Operating Partnership has also, in the past, converted some of its properties and sold them as condominiums but is not currently active in this line of business.
strategically targeted markets;
income levels and employment growth trends in the relevant market;
employment and household growth and net migration As part of the relevant market’s population;
barriers to entry that would limit competition (zoning laws, building permit availability, supply of undeveloped or developable real estate, local building costs and construction costs, among other factors);
the location, construction quality, condition and design of the property;
the current and projected cash flow of the property and the ability to increase cash flow;
the potential for capital appreciation of the property;
the terms of resident leases, including the potential for rent increases;
the potential for economic growth and the tax and regulatory environment of the community in which the property is located;
the occupancy and demand by residents for properties of a similar type in the vicinity (the overall market and submarket);
the prospects for liquidity through sale, financing or refinancing of the property;
the benefits of integration into existing operations;
purchase prices and yields of available existing stabilized properties, if any;
competition from existing multifamily properties, comparably priced single family homes or rentals, residential properties under development and the potential for the construction of new multifamily properties in the area; and
opportunistic selling based on demand and price of high quality assets, including condominium conversions.
The Operating Partnership generally reinvests the proceeds received from property dispositions primarily to achieve its acquisition, development and rehab strategies and at times to fund its debt and EQR’s equity repurchase activities. In addition, when feasible,strategy, the Operating Partnership purchases completed and fully occupied apartment properties, partially completed or partially unoccupied properties or land on which apartment properties can be constructed. We intend to hold a diversified portfolio of assets across our target markets. Currently, no single metropolitan area accounts for more than 17% of our NOI, though no guarantee can be made that NOI concentration may structure these transactions as tax-deferred exchanges.
See also Note 20not increase in the Notesfuture.
best employees by providing them with the education, resources and opportunities to succeed. We provide many classroom and on-line training courses to assist our employees in interacting with prospects and residents as well as extensively train our customer service specialists in maintaining the equipment and appliances on our property sites. We actively promote from within and many senior corporate and property leaders have risen from entry level or junior positions. We monitor our employees’ engagement by surveying them annually and have consistently received high engagement scores.
5
The Operating Partnership obtained $500.0 million of mortgage loan proceeds through the issuance of an 11.5 year (stated maturity date of October 1, 2019) cross-collateralized loan with a fixed stated interest rate for 10.5 years at 5.19% secured by 13 properties.
The Operating Partnership obtained $550.0 million of mortgage loan proceeds through the issuance of an 11.5 year (stated maturity date of March 1, 2020) cross-collateralized loan with a fixed stated interest rate for 10.5 years at approximately 6% secured by 15 properties.
The Operating Partnership obtained $543.0 million of mortgage loan proceeds through the issuance of an 8 year (stated maturity date of January 1, 2017) cross-collateralized loan with a fixed stated interest rate for 7 years at approximately 6% secured by 18 properties.
EQR issued 995,129 Common Shares pursuant to its Share Incentive Plans and received net proceeds of approximately $24.6 million.
EQR issued 195,961 Common Shares pursuant to its Employee Share Purchase Plan and received net proceeds of approximately $6.2 million.
EQR repurchased and retired 220,085 of its Common Shares at an average price of $35.93 per share for total consideration of $7.9 million. See Note 3 in the Notes to Consolidated Financial Statements for further discussion.
The Operating Partnership repurchased $72.6 million of its 4.75% fixed rate public notes due June 15, 2009 at a discount to par of approximately 1.0%. See Note 9 in the Notes to Consolidated Financial Statements for further discussion.
The Operating Partnership repurchased $101.4 million of its 3.85% convertible fixed rate public notes due August 15, 2026 at a discount to par of approximately 17.7%. See Note 9 in the Notes to Consolidated Financial Statements for further discussion.
During 2007:
The Operating Partnership issued $350.0 million of five-year 5.50% fixed rate notes (the “October 2012 Notes”) in a public debt offering in May/June 2007. The October 2012 Notes were issued at a discount, which is being amortized over the life of the notes on a straight-line basis. The October 2012 Notes are due October 1, 2012 with interest payable semiannually in arrears on January 15 and July 15, commencing January 15, 2008. The Operating Partnership received net proceeds of approximately $346.1 million in connection with this issuance.
The Operating Partnership issued $650.0 million of ten-year 5.75% fixed rate notes (the “June 2017 Notes”) in a public debt offering in May/June 2007. The June 2017 Notes were issued at a discount, which is being amortized over the life of the notes on a straight-line basis. The June 2017 Notes are due June 15, 2017 with interest payable semiannually in arrears on January 15 and July 15, commencing January 15, 2008. The Operating Partnership received net proceeds of approximately $640.6 million in connection with this issuance.
The Operating Partnership obtained a three-year (subject to two one-year extension options) $500.0 million senior unsecured credit facility (term loan) which generally pays a variable interest rate of LIBOR plus a spread dependent upon the current credit rating on the Operating Partnership’s long-term unsecured debt. The Operating Partnership paid $1.1 million in upfront costs, which will be deferred and amortized over the three-year term. EQR has guaranteed the Operating Partnership’s term loan facility up to the maximum amount and for the full term of the facility.
EQR issued 1,040,765 Common Shares pursuant to its Share Incentive Plans and received net proceeds of approximately $28.8 million.
EQR issued 189,071 Common Shares pursuant to its Employee Share Purchase Plan and received net proceeds of approximately $7.2 million.
EQR repurchased and retired 27,484,346 of its Common Shares at an average price of $44.62 per share for
• | The Operating Partnership issued $600.0 million of ten-year 4.75% fixed rate public notes in a public offering at an all-in effective interest rate of 5.09%, receiving net proceeds of $595.4 million before underwriting fees and other expenses. | ||
| • | EQR issued 2,506,645 Common Shares pursuant to its Share Incentive Plans and received net proceeds of approximately $71.6 million. | ||
| • | EQR issued 157,363 Common Shares pursuant to its Employee Share Purchase Plan and received net proceeds of approximately $5.1 million. | ||
| • | EQR issued 6,151,198 Common Shares at an average price of $47.45 per share for total consideration of | ||
| • | EQR repurchased and retired 58,130 of its Common Shares at an average price of $32.46 per share for total consideration of $1.9 million (all related to the vesting of employee restricted shares). See Note 3 in the Notes to Consolidated Financial Statements for further discussion. |
| • | The Operating Partnership obtained $500.0 million of mortgage loan proceeds through the issuance of an 11 year (stated maturity date of July 1, 2020) cross-collateralized loan with an all-in fixed interest rate for 10 years at approximately 5.6% secured by 13 properties. | ||
| • | EQR issued 422,713 Common Shares pursuant to its Share Incentive Plans and received net proceeds of approximately $9.1 million. | ||
| • | EQR issued 324,394 Common Shares pursuant to its Employee Share Purchase Plan and received net proceeds of approximately $5.3 million. | ||
| • | EQR issued 3,497,300 Common Shares at an average price of $35.38 per share for total consideration of $123.7 million pursuant to its ATM share offering program. See Note 3 in the Notes to Consolidated Financial Statements for further discussion. | ||
| • | EQR repurchased and retired 47,450 of its Common Shares at an average price of $23.69 per share for total consideration of $1.1 million (all related to the vesting of employee restricted shares). See Note 3 in the Notes to Consolidated Financial Statements for further discussion. | ||
| • | The Operating Partnership repurchased $75.8 million of its 5.20% fixed rate tax-exempt notes. | ||
| • | The Operating Partnership repurchased at par $105.2 million of its 4.75% fixed rate public notes due June 15, 2009. In addition, the Operating Partnership repaid the remaining $122.2 million of its 4.75% fixed rate public notes at maturity. See Note 9 in the Notes to Consolidated Financial Statements for further discussion. | ||
| • | The Operating Partnership repurchased $185.2 million at par and $21.7 million at a price of 106% of par of its 6.95% fixed rate public notes due March 2, 2011. See Note 9 in the Notes to Consolidated Financial Statements for further discussion. | ||
| • | The Operating Partnership repurchased $146.1 million of its 6.625% fixed rate public notes due March 15, 2012 at a price of 108% of par. See Note 9 in the Notes to Consolidated Financial Statements for further discussion. | ||
| • | The Operating Partnership repurchased $127.9 million of its 5.50% fixed rate public notes due October 1, 2012 at a price of 107% of par. See Note 9 in the Notes to Consolidated Financial Statements for further discussion. | ||
| • | The Operating Partnership repurchased $17.5 million of its 3.85% convertible fixed rate public notes due August 15, 2026 (putable in 2011) at a price of 88.4% of par. In addition, the Operating Partnership repurchased $48.5 million of these notes at par. See Note 9 in the Notes to Consolidated Financial Statements for further discussion. |
| • | The Operating Partnership obtained $500.0 million of mortgage loan proceeds through the issuance of an 11.5 year (stated maturity date of October 1, 2019) cross-collateralized loan with a fixed stated interest rate for 10.5 years at 5.19% secured by 13 properties. | ||
| • | The Operating Partnership obtained $550.0 million of mortgage loan proceeds through the issuance of an 11.5 year (stated maturity date of March 1, 2020) cross-collateralized loan with a fixed stated interest rate for 10.5 years at approximately 6% secured by 15 properties. | ||
| • | The Operating Partnership obtained $543.0 million of mortgage loan proceeds through the issuance of an 8 |
6
The Operating Partnership issued $400.0 million of ten and one-half year 5.375% unsecured fixed rate notes (the “August 2016 Notes”) in a public debt offering in January 2006. The August 2016 Notes were issued at a discount, which is being amortized over the life of the notes on a straight-line basis. The August 2016 Notes are due August 1, 2016 with interest payable semiannually in arrears on February 1 and August 1, commencing August 1, 2006. The Operating Partnership received net proceeds of approximately $395.5 million in connection with this issuance.
The Operating Partnership issued $650.0 million of twenty-year 3.85% exchangeable senior notes (the “August 2026 Notes”) in a public debt offering in August 2006. The August 2026 Notes were issued at a discount, which is being amortized over the life of the notes on a straight-line basis. The August 2026 Notes are due August 15, 2026 with interest payable semiannually in arrears on February 15 and August 15, commencing February 15, 2007. The Operating Partnership received net proceeds of approximately $637.0 million in connection with this issuance. See Note 9 in the Notes to Consolidated Financial Statements for further discussion.
| year (stated maturity date of January 1, 2017) cross-collateralized loan with a fixed stated interest rate for 7 years at approximately 6% secured by 18 properties. | |||
| • | EQR issued 995,129 Common Shares pursuant to its Share Incentive Plans and received net proceeds of approximately $24.6 million. | ||
| • | EQR issued 195,961 Common Shares pursuant to its Employee Share Purchase Plan and received net proceeds of approximately $6.2 million. | ||
| • | EQR repurchased and retired 220,085 of its Common Shares at an average price of $35.93 per share for total consideration of $7.9 million. See Note 3 in the Notes to Consolidated Financial Statements for further discussion. | ||
| • | The Operating Partnership repurchased $72.6 million of its 4.75% fixed rate public notes due June 15, 2009 at a price of 99.0% of par. See Note 9 in the Notes to Consolidated Financial Statements for further discussion. | ||
| • | The Operating Partnership repurchased $101.4 million of its 3.85% convertible fixed rate public notes due August 15, 2026 (putable in 2011) at a price of 82.3% of par. See Note 9 in the Notes to Consolidated Financial Statements for further discussion. |
EQR issued 2,647,776 Common Shares pursuant to its Share Incentive Plans and received net proceeds of approximately $69.7 million.
EQR issued 213,427 Common Shares pursuant to its Employee Share Purchase Plan and received net proceeds of approximately $8.0 million.
EQR repurchased 1,897,912 of its Common Shares on the open market at an average price of $43.85 per share. EQR paid approximately $83.2 million for these shares, which were retired subsequent to the repurchase.
EQR contributed all of the net proceeds of the above equity offerings to the Operating Partnership in exchange for OP Units or preference units.
On
As of February 26, 2009, an13, 2011.
During the year ended December 31, 2008, one of the providers of the Operating Partnership’s unsecured revolving credit facility declared bankruptcy. Under the existing terms of the credit facility, the provider’s share is up to $75.0 million of potential borrowings. As a result, the Operating Partnership’s borrowing capacity under the unsecured revolving credit facility has in essence been permanently reduced to $1.425 billion of potential borrowings. The obligation to fund by all of the other providers has not changed.
On April 1, 2005, the Operating Partnership obtained a three-year $1.0 billion unsecured revolving credit facility maturing on May 29, 2008. Advances under the credit facility bore interest at variable rates based upon LIBOR at various interest periods plus a spread dependent upon the Operating Partnership’s credit rating or based on bids received from the lending group. EQR guaranteed the Operating Partnership’s credit facility up to the maximum amount and for the full term of the facility. This credit facility was repaid in full and terminated on February 28, 2007. The Operating Partnership recorded $0.4 million of write-offs of unamortized deferred financing costs as additional interest in connection with this termination.
On May 7, 2007, the Operating Partnership obtained a one-year $500.0 million unsecured revolving credit facility maturing on May 5, 2008. Advances under this facility bore interest at variable rates based on LIBOR at various interest periods plus a spread dependent upon the Operating Partnership’s credit rating. EQR guaranteed this credit facility up to the maximum amount and for its full term. This credit facility was repaid in full and terminated on June 4, 2007.
2009.
7
other available multifamily property ownersproperties and single family homes and changes in market rental rates. Our performance also depends on our ability to collect rent from residents and to pay for adequate maintenance, insurance and other operating costs, including real estate taxes, all of which could increase over time. Sources of labor and materials required for maintenance, repair, capital expenditure or development may be more expensive than anticipated. Also, the expenses of owning and operating a property are not necessarily reduced when circumstances such as market factors and competition cause a reduction in income from the property.
We May Not Have Sufficient Cash Flows From Operations After Capital Expenditures to Cover Our Distributions
| We May Not Have Sufficient Cash Flows From Operations After Capital Expenditures to Cover Our Distributions and Our New Dividend Policy May Lead to Quicker Dividend Reductions |
While our new dividend policy makes it less likely we will over distribute, it will also lead to a dividend reduction more quickly than in the past should operating results deteriorate. See Item 7 for additional discussion regarding our new dividend policy.
8
New Acquisitions and/or Development Projects May Fail to Perform as Expected and Competition for Acquisitions May Result in Increased Prices for Properties
| New Acquisitions and/or Development Projects May Fail to Perform as Expected and Competition for Acquisitions May Result in Increased Prices for Properties |
make capital contributions when due; that we may be responsible to our partner for indemnifiable losses; that our partner might at any time have business or economic goals which are inconsistent with ours; and that our partner may be in a position to take action or withhold consent contrary to our instructions or requests. Frequently, we and our partner may each have the right to trigger a buy-sell arrangement, which could cause us to sell our interest, or acquire our partner’s interest, at a time when we otherwise would not have initiated such a transaction. In some instances, joint venture partners may have competing interests in our markets that could create conflicts of interest. Further, the Operating Partnership’s joint venture partners may experience financial distress and to the extent they do not meet their obligations to us or our joint ventures with them, we may be adversely affected.
| Because Real Estate Investments Are Illiquid, We May Not Be Able to Sell Properties When Appropriate |
9
| Changes in Market Conditions and Volatility of Share Prices Could Adversely Affect the Market Price of EQR’s Common Shares |
| • | general market and economic conditions; | ||
| • | actual or anticipated variations in our quarterly operating results or dividends; | ||
| • | changes in our funds from operations, normalized funds from operations or earnings estimates; | ||
| • | difficulties or inability to access capital or extend or refinance debt; | ||
| • | decreasing (or uncertainty in) real estate valuations; | ||
| • | a change in analyst ratings; | ||
| • | adverse market reaction to any additional debt we incur in the future; | ||
| • | governmental regulatory action, including changes or proposed changes to the mandates of Fannie Mae or Freddie Mac, and changes in tax laws; and | ||
| • | the issuance of additional Common Shares, or the perception that such issuances might occur, including under EQR’s ATM program. |
ability to make distributions to our security holders. Similarly, changes that increase our potential liability under environmental laws or our expenditures on environmental compliance would adversely affect our cash flow and ability to make distributions on our securities.
| Any Weaknesses Identified in Our Internal Control Over Financial Reporting Could Have an Adverse Effect on EQR’s Share Price |
Over the past several years, there
10
property, should mold become an issue in the future, our financial condition or results of operations may be adversely affected.
In order to manage insurance costs, management has gradually increased deductible and self-insured retention amounts.
However, the potential impact of climate change and increased severe weather could cause a significant increase in insurance premiums and deductibles, particularly for our coastal properties, or a decrease in the availability of coverage, either of which could expose the Operating Partnership to even greater uninsured losses which may adversely affect our financial condition or results of operations.
11
2010.
| Disruptions in the Financial Markets Could Adversely Affect Our Ability to Obtain Debt Financing and Impact our Acquisitions and Dispositions |
The United States capital and credit markets continue to experience significant dislocations and liquidity disruptions. These circumstances have materially impactedcould impact liquidity in the debt markets, makingresulting in financing terms for usthat are less attractive and resulted into us and/or the unavailability of certain types of debt financing. IfShould the capital and credit markets continue to experience volatility and the availability of funds remainsagain become limited, or be available only on unattractive terms, or non-existent, we will incur increased costs associated with issuing debt instruments. In addition, it is possible that our ability to access the capital and credit markets may be limited or precluded by these or other factors at a time when we would like, or need, to do so, which would adversely impact our ability to refinance maturing debt and/or react to changing economic and business conditions. Due to disruptions in the floating rate tax-exempt bond market where the interest rates reset weekly and in the credit market’s perception of Fannie Mae and Freddie Mac, which guaranty and provide liquidity for these bonds, we have experienced and could experience in the future an increase in interest rates on these debt obligations. These bonds could also be put to our consolidated subsidiaries if Fannie Mae or Freddie Mac fail to satisfy their guaranty obligations. While this obligation is in almost all cases non-recourse to us, this could cause the Operating Partnership to have to repay these obligations on short notice or risk foreclosure actions on the collateralized assets. Furthermore, while we believe Fannie Mae and Freddie Mac will continue to provide liquidity to our sector, should they discontinue doing so, have their mandates changed or reduced or be disbanded by the government, it would significantly reduce our access to debt capital and/or increase borrowing costs and would significantly reduce our sales of assets. Uncertainty in the credit markets could negatively impact our ability to make acquisitions and make it more difficult or not possible for us to sell properties or may adversely affect the price we receive for properties that we do sell, as prospective buyers may experience increased costs of debt financing or difficulties in obtaining debt financing. Potential continued disruptions in the financial markets could also have other unknown adverse effects on us or the economy generally and may cause the price of EQR’s Common Shares to fluctuate significantly and/or to decline.
One of the financial institutions, with a commitment of $75.0 million, has recently declared bankruptcy in 2008 and it is unlikely that they wouldwill not honor theirits financial commitment. Our borrowing capacity under the credit facility has in essence been permanently reduced to $1.425 billion.
12
deductibles or to obtain lower deductible insurance compliant with the lenders’ requirements at the lower rating level.
Foreclosure on mortgaged properties or an inability to refinance existing indebtedness would likely have a negative impact on our financial condition and results of operations.
2010.
If a property we own is mortgaged to secure debt and we are unable to meet the mortgage payments, the holder of the mortgage could foreclose on the property, resulting in loss of income and asset value. Foreclosure on mortgaged properties or an inability to refinance existing indebtedness would likely have a negative impact on our financial condition and results of operations.
2009, should it fall out of compliance, it would likely have a negative impact on our financial condition and results of operations.
restrictions, this may not always be the case.
Our consolidated debt-to-total market capitalization ratio was 54.3% as of December 31, 2008.
13
| December 31, | December 31, | |||||||
| 2010 | 2009 | |||||||
| Total Debt to Adjusted Total Assets (not to exceed 60%) | 48.5 | % | 48.8 | % | ||||
| Secured Debt to Adjusted Total Assets (not to exceed 40%) | 23.2 | % | 24.9 | % | ||||
| Consolidated Income Available for Debt Service to Maximum Annual Service Charges (must be at least 1.5 to 1) | 2.46 | 2.44 | ||||||
| Total Unsecured Assets to Unsecured Debt (must be at least 150%) | 256.0 | % | 256.5 | % | ||||
lending group. Certain public issuances of our senior unsecured debt instruments may also, from time to time, bear interest at floating rates. We may also borrow additional money with variable interest rates in the future. Increases in interest rates would increase our interest expense under these debt instruments and would increase the costs of refinancing existing debt and of issuing new debt. Accordingly, higher interest rates could adversely affect cash flow and our ability to service our debt and to make distributions to security holders. We
No strategy can completely insulate us from the risks associated with interest rate fluctuations.
In the event EQR’s Chairman of the Board and/or CEO are unable to serve, (i) the Lead Trustee will automatically be appointed to serve as the interim successor to the Chairman, (ii) the Chairman will automatically be appointed to serve as the interim successor to the CEO and (iii) the Chair of the Compensation Committee of the Board will immediately call a meeting of the Committee to recommend to the full Board the selection of a permanent replacement for either or both positions, as necessary.
14
Our General Partner’s Compliance with REIT Distribution Requirements May Affect Our Financial Condition
Distribution Requirements May Increase the Indebtedness of the Operating Partnership
We may be required from time to time, under certain circumstances, to accrue as income for tax purposes interest and rent earned but not yet received. In such event, or upon our repayment of principal on debt, we could have taxable income without sufficient cash to enable us to meet the distribution requirements of a REIT. Accordingly, we could be required to borrow funds or liquidate investments on adverse terms in order to meet these distribution requirements.
Tax Elections Regarding Distributions May Impact Future Liquidity of the Operating Partnership
During 2008, we did make, and under certain circumstances may consider making again in the future, a tax election to treat future distributions to shareholders as distributions in the current year. This election, which is provided for in the REIT tax code, may allow us to avoid increasing our dividends or paying additional income taxes in the current year. However, this could result in a constraint on our ability to decrease our dividends in future years without creating risk of either violating the REIT distribution requirements or generating additional income tax
liability.
Type Garden Mid/High-Rise Military Housing Total Wholly Owned Properties Partially Owned Properties: Consolidated Unconsolidated Military Housing (Fee Managed) 2010: 152008,2010, the Operating Partnership, directly or indirectly through investments in title holding entities, owned all or a portion of 548451 properties located in 2317 states and the District of Columbia consisting of 147,244129,604 apartment units. The Operating Partnership’s properties are summarized by building type in the following table: Properties Units Average
Units 471 124,850 265 75 17,685 236 2 4,709 2,355 548 147,244 Average Type Properties Apartment Units Apartment Units Garden 354 100,551 284 Mid/High-Rise 95 24,315 256 Military Housing 2 4,738 2,369 Total 451 129,604 Properties Units 477 127,002 28 5,757 41 9,776 2 4,709 548 147,244 Properties Apartment Units Wholly Owned Properties 425 119,634 Partially Owned Properties — Consolidated 24 5,232 Military Housing 2 4,738 451 129,604 2008: % of Average % of Total Stabilized Rental Markets Properties Apartment Units Apartment Units NOI Rate (1) 1 New York Metro Area 28 8,290 6.4 % 12.7 % $ 2,843 2 DC Northern Virginia 31 10,393 8.0 % 12.1 % 1,869 3 South Florida 38 12,869 9.9 % 9.1 % 1,313 4 Los Angeles 39 8,311 6.4 % 8.1 % 1,717 5 Boston 28 5,711 4.4 % 7.1 % 2,204 6 Seattle/Tacoma 43 9,748 7.5 % 6.7 % 1,293 7 San Francisco Bay Area 35 6,606 5.1 % 6.0 % 1,683 8 San Diego 14 4,963 3.8 % 5.2 % 1,789 9 Phoenix 36 10,769 8.3 % 4.8 % 848 10 Denver 23 7,967 6.2 % 4.7 % 1,044 11 Suburban Maryland 21 5,782 4.5 % 4.5 % 1,346 12 Orlando 26 8,042 6.2 % 4.2 % 961 13 Orange County, CA 11 3,490 2.7 % 3.2 % 1,518 14 Atlanta 20 6,183 4.8 % 3.0 % 961 15 Inland Empire, CA 11 3,639 2.8 % 2.8 % 1,352 16 All Other Markets (2) 45 12,103 9.3 % 5.8 % 975 449 124,866 96.3 % 100.0 % 1,444 Military Housing 2 4,738 3.7 % — — 451 129,604 100.0 % 100.0 % $ 1,444 (1) Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment units for the month
Markets | Properties | Units | % of Total Units | % of 2009 Stabilized NOI | Average Rental Rate (1) | ||||||||
1 | New York Metro Area | 22 | 6,246 | 4.2% | 10.0% | $ | 2,748 | ||||||
2 | DC Northern Virginia | 26 | 8,781 | 6.0% | 8.8% | 1,637 | |||||||
3 | South Florida | 39 | 12,897 | 8.8% | 8.4% | 1,270 | |||||||
4 | Los Angeles | 38 | 7,749 | 5.3% | 7.8% | 1,777 | |||||||
5 | Seattle/Tacoma | 49 | 11,138 | 7.6% | 7.5% | 1,330 | |||||||
6 | San Francisco Bay Area | 34 | 6,731 | 4.6% | 6.5% | 1,709 | |||||||
7 | Boston | 37 | 6,217 | 4.2% | 6.4% | 1,962 | |||||||
8 | Phoenix | 42 | 12,084 | 8.2% | 5.3% | 902 | |||||||
9 | Denver | 25 | 8,606 | 5.8% | 5.0% | 1,019 | |||||||
10 | San Diego | 14 | 4,491 | 3.1% | 4.4% | 1,655 | |||||||
11 | Orlando | 26 | 8,042 | 5.5% | 4.3% | 1,021 | |||||||
12 | Atlanta | 29 | 8,882 | 6.0% | 3.9% | 944 | |||||||
13 | Inland Empire, CA | 15 | 4,655 | 3.2% | 3.7% | 1,362 | |||||||
14 | Suburban Maryland | 21 | 5,559 | 3.8% | 3.4% | 1,180 | |||||||
15 | Orange County, CA | 10 | 3,307 | 2.2% | 3.3% | 1,597 | |||||||
16 | New England (excluding Boston) | 32 | 4,769 | 3.2% | 2.5% | 1,106 | |||||||
17 | Portland, OR | 11 | 3,713 | 2.5% | 1.9% | 959 | |||||||
18 | Jacksonville | 12 | 3,951 | 2.7% | 1.7% | 868 | |||||||
19 | Dallas/Ft. Worth | 14 | 3,427 | 2.3% | 1.4% | 936 | |||||||
20 | Tampa | 11 | 3,414 | 2.3% | 1.3% | 909 | |||||||
Top 20 Total | 507 | 134,659 | 91.5% | 97.5% | 1,344 | ||||||||
21 | Raleigh/Durham | 12 | 3,058 | 2.1% | 1.3% | 818 | |||||||
22 | Central Valley, CA | 8 | 1,343 | 0.9% | 0.6% | 1,090 | |||||||
23 | Other EQR | 15 | 3,318 | 2.2% | 0.6% | 907 | |||||||
Total | 542 | 142,378 | 96.7% | 100.0% | 1,320 | ||||||||
Condominium Conversion | 4 | 157 | 0.1% | - | - | ||||||||
Military Housing | 2 | 4,709 | 3.2% | - | - | ||||||||
Grand Total | 548 | 147,244 | 100.0% | 100.0% | $ | 1,320 | |||||||
(1) Average rental rate is defined as total rental revenues divided by
| of December 2010. | ||
| (2) | All Other Markets — Each individual market is less than 2.0% of stabilized NOI. |
projects are included at their stabilized NOI. Projects under lease-up are included at their stabilized NOI.
2010
Projects | Location | No. of Units | Total Capital Cost (1) | Total Book Value to Date | Total Book Value Not Placed in Service | Total Debt | Percentage Completed | Percentage Leased | Percentage Occupied | Estimated Completion Date | Estimated Stabilization Date | |||||||||||||||||
Projects Under Development – Wholly Owned: | ||||||||||||||||||||||||||||
Mosaic at Metro | Hyattsville, MD | 260 | $ | 61,483 | $ | 53,329 | $ | 53,329 | $ | 38,425 | 94% | 21% | 14% | Q1 2009 | Q1 2010 | |||||||||||||
70 Greene (a.k.a. 77 Hudson) | Jersey City, NJ | 480 | 269,958 | 196,126 | 196,126 | - | 79% | - | - | Q4 2009 | Q1 2011 | |||||||||||||||||
Reserve at Town Center II | Mill Creek, WA | 100 | 24,464 | 9,324 | 9,324 | - | 27% | - | - | Q1 2010 | Q3 2010 | |||||||||||||||||
Redmond Way | Redmond, WA | 250 | 84,382 | 22,434 | 22,434 | - | 7% | - | - | Q1 2011 | Q1 2012 | |||||||||||||||||
Projects Under Development – Wholly Owned | 1,090 | 440,287 | 281,213 | 281,213 | 38,425 | |||||||||||||||||||||||
Projects Under Development – | ||||||||||||||||||||||||||||
Third Square (a.k.a. 303 Third St.) | Cambridge, MA | 482 | 254,523 | 250,629 | 126,437 | 158,515 | 98% | 36% | 29% | Q1 2009 | Q2 2010 | |||||||||||||||||
Veridian (a.k.a. Silver Spring) | Silver Spring, MD | 457 | 148,705 | 139,904 | 139,904 | 98,674 | 95% | 22% | 5% | Q1 2009 | Q3 2010 | |||||||||||||||||
Montclair Metro | Montclair, NJ | 163 | 48,730 | 29,326 | 29,326 | 14,540 | 64% | - | - | Q3 2009 | Q1 2010 | |||||||||||||||||
Red Road Commons | South Miami, FL | 404 | 128,816 | 96,600 | 96,600 | 39,028 | 71% | - | - | Q1 2010 | Q3 2011 | |||||||||||||||||
111 Lawrence Street | Brooklyn, NY | 492 | 283,968 | 108,727 | 108,727 | - | 32% | - | - | Q2 2010 | Q3 2011 | |||||||||||||||||
Westgate | Pasadena, CA | 480 | 170,558 | 73,266 | 73,266 | 163,160 | (2) | 24% | - | - | Q2 2011 | Q2 2012 | ||||||||||||||||
Projects Under Development – Partially Owned | 2,478 | 1,035,300 | 698,452 | 574,260 | 473,917 | |||||||||||||||||||||||
Projects Under Development | 3,568 | 1,475,587 | 979,665 | 855,473 | 512,342 | (3) | ||||||||||||||||||||||
Land Held for Development | N/A | - | 254,873 | (5) | 254,873 | 43,626 | ||||||||||||||||||||||
Land/Projects Held for and/or Under | 3,568 | 1,475,587 | 1,234,538 | 1,110,346 | 555,968 | |||||||||||||||||||||||
Completed Not Stabilized – Wholly Owned (4): | ||||||||||||||||||||||||||||
Key Isle at Windermere II | Orlando, FL | 165 | 27,955 | 27,825 | - | - | 93% | 89% | Completed | Q1 2009 | ||||||||||||||||||
West End Apartments | Boston, MA | 310 | 164,981 | 163,145 | - | - | 92% | 86% | Completed | Q2 2009 | ||||||||||||||||||
Highland Glen II | Westwood, MA | 102 | 19,888 | 19,868 | - | - | 86% | 86% | Completed | Q2 2009 | ||||||||||||||||||
Crowntree Lakes | Orlando, FL | 352 | 57,376 | 56,680 | - | - | 81% | 69% | Completed | Q4 2009 | ||||||||||||||||||
Reunion at Redmond Ridge | Redmond, WA | 321 | 54,418 | 52,909 | - | - | 31% | 28% | Completed | Q3 2010 | ||||||||||||||||||
Projects Completed Not Stabilized – Wholly Owned | 1,250 | 324,618 | 320,427 | - | - | |||||||||||||||||||||||
Completed Not Stabilized – Partially Owned (4): | ||||||||||||||||||||||||||||
Alta Pacific | Irvine, CA | 132 | 45,342 | 45,317 | - | 28,260 | 95% | 89% | Completed | Q1 2009 | ||||||||||||||||||
1401 S. State (a.k.a. City Lofts) | Chicago, IL | 278 | 69,952 | 68,247 | - | 48,448 | 63% | 53% | Completed | Q3 2009 | ||||||||||||||||||
Projects Completed Not Stabilized – Partially Owned | 410 | 115,294 | 113,564 | - | 76,708 | |||||||||||||||||||||||
Projects Completed Not Stabilized | 1,660 | 439,912 | 433,991 | - | 76,708 | |||||||||||||||||||||||
Total Projects | 5,228 | $ | 1,915,499 | $ | 1,668,529 | $ | 1,110,346 | $ | 632,676 | |||||||||||||||||||
| No. of | Total | Total | Total Book Value Not | Estimated | Estimated | |||||||||||||||||||||||||||||||||||||||
| Apartment | Capital | Book Value | Placed in | Total | Percentage | Percentage | Percentage | Completion | Stabilization | |||||||||||||||||||||||||||||||||||
| Projects | Location | Units | Cost (1) | to Date | Service | Debt | Completed | Leased | Occupied | Date | Date | |||||||||||||||||||||||||||||||||
| Projects Under Development — Wholly Owned: | ||||||||||||||||||||||||||||||||||||||||||||
| Red 160 (formerly Redmond Way) | Redmond, WA | 250 | $ | 84,382 | $ | 76,964 | $ | 76,964 | $ | — | 97 | % | 86 | % | 68 | % | Q1 2011 | Q1 2012 | ||||||||||||||||||||||||||
| 500 West 23rd Street (formerly 10 Chelsea) (2) | New York, NY | 111 | 55,555 | 27,382 | 27,382 | — | 33 | % | — | — | Q4 2011 | Q4 2012 | ||||||||||||||||||||||||||||||||
| Savoy III | Aurora, CO | 168 | 23,856 | 5,409 | 5,409 | — | 7 | % | — | — | Q3 2012 | Q2 2013 | ||||||||||||||||||||||||||||||||
| 2201 Pershing Drive | Arlington, VA | 188 | 64,242 | 14,707 | 14,707 | — | 1 | % | — | — | Q3 2012 | Q3 2013 | ||||||||||||||||||||||||||||||||
| Projects Under Development — Wholly Owned | 717 | 228,035 | 124,462 | 124,462 | — | |||||||||||||||||||||||||||||||||||||||
| Projects Under Development | 717 | 228,035 | 124,462 | 124,462 | — | |||||||||||||||||||||||||||||||||||||||
| Completed Not Stabilized — Wholly Owned (3): | ||||||||||||||||||||||||||||||||||||||||||||
| Reunion at Redmond Ridge | Redmond, WA | 321 | 53,175 | 53,151 | — | — | 94 | % | 93 | % | Completed | Q1 2011 | ||||||||||||||||||||||||||||||||
| Westgate | Pasadena, CA | 480 | 165,558 | 154,886 | — | 135,000 | (4) | 80 | % | 76 | % | Completed | Q3 2011 | |||||||||||||||||||||||||||||||
| 425 Mass (5) | Washington, D.C. | 559 | 166,750 | 166,750 | — | — | 61 | % | 58 | % | Completed | Q1 2012 | ||||||||||||||||||||||||||||||||
| Vantage Pointe (5) | San Diego, CA | 679 | 200,000 | 200,000 | — | — | 42 | % | 41 | % | Completed | Q3 2012 | ||||||||||||||||||||||||||||||||
| Projects Completed Not Stabilized — Wholly Owned | 2,039 | 585,483 | 574,787 | — | 135,000 | |||||||||||||||||||||||||||||||||||||||
| Completed Not Stabilized — Partially Owned (3): | ||||||||||||||||||||||||||||||||||||||||||||
| The Brooklyner (formerly 111 Lawrence) | Brooklyn, NY | 490 | 272,368 | 257,748 | — | 141,741 | 93 | % | 89 | % | Completed | Q2 2011 | ||||||||||||||||||||||||||||||||
| Projects Completed Not Stabilized — Partially Owned | 490 | 272,368 | 257,748 | — | 141,741 | |||||||||||||||||||||||||||||||||||||||
Projects Completed Not Stabilized | 2,529 | 857,851 | 832,535 | — | 276,741 | |||||||||||||||||||||||||||||||||||||||
Completed and Stabilized During the Quarter — Wholly Owned: | ||||||||||||||||||||||||||||||||||||||||||||
| 70 Greene (formerly 77 Hudson) | Jersey City, NJ | 480 | 268,458 | 267,403 | — | — | 93 | % | 91 | % | Completed | Stabilized | ||||||||||||||||||||||||||||||||
| Third Square (formerly 303 Third) | Cambridge, MA | 482 | 257,457 | 256,546 | — | — | 94 | % | 92 | % | Completed | Stabilized | ||||||||||||||||||||||||||||||||
| Projects Completed and Stabilized During the Quarter — Wholly Owned | 962 | 525,915 | 523,949 | — | — | |||||||||||||||||||||||||||||||||||||||
Projects Completed and Stabilized During the Quarter | 962 | 525,915 | 523,949 | — | — | |||||||||||||||||||||||||||||||||||||||
| Total Projects | 4,208 | $ | 1,611,801 | $ | 1,480,946 | $ | 124,462 | (6) | $ | 276,741 | ||||||||||||||||||||||||||||||||||
| Land Held for Development | N/A | N/A | $ | 235,247 | $ | 235,247 | $ | 18,342 | ||||||||||||||||||||||||||||||||||||
| ||
| (1) | Total capital cost represents estimated | |
| (2) | 500 West 23rd Street — The land under this development is subject to a long-term ground lease. |
16
| ||
| (3) | Properties included here are substantially complete. However, they may still require additional exterior and interior work for all apartment units to be available for leasing. | |
| (4) | Debt is |
| ||
| (5) |
| The Operating Partnership acquired these completed development projects prior to |
| |
| (6) |
|
| Total book value not placed in service excludes $5.9 million of construction-in-progress related to |
17and asor a result,possible loss or a range of loss, and no amounts have been accrued at December 31, 2008.2010. While no assurances can be given, the Operating Partnership does not believe that the suit, if adversely determined, would have a material adverse effect on the Operating Partnership. may be expected to have a material adverse effect on the Operating Partnership.Submission of Matters to a Vote of Security HoldersReserved
None.
Fourth Quarter Ended December 31, Third Quarter Ended September 30, Second Quarter Ended June 30, First Quarter Ended March 31, Units. Period October 2008 November 2008 December 2008 Fourth Quarter 2008 2010, the Operating Partnership issued 15,948 OP Units having a value of $0.8 million. OP Units are generally exchangeable into Common Shares of EQR on a one-for-one basis or, at the option of the Operating Partnership, the cash equivalent thereof, at any time one year after the date of issuance. These OP Units were issued in exchange for direct or indirect interest in multifamily properties in private placement transactions under Section 4(2) of the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, as these were transactions by an issuer not involving a public offering. In light of the manner of the sale and information obtained by the Operating Partnership from the limited partners in connection with these transactions, the Operating Partnership believes it may rely on these exemptions. Plan Category Equity compensation plans Equity compensation plans not The amounts shown in columns (a) and (b) of the above table do not include (2) 18Units: Distributions 2008 2007 $ 0.4825 $ 0.4825 $ 0.4825 $ 0.4625 $ 0.4825 $ 0.4625 $ 0.4825 $ 0.4625 Distributions 2010 2009 Fourth Quarter Ended December 31, $ 0.4575 $ 0.3375 Third Quarter Ended September 30, $ 0.3375 $ 0.3375 Second Quarter Ended June 30, $ 0.3375 $ 0.4825 First Quarter Ended March 31, $ 0.3375 $ 0.4825 Junior Convertible PreferenceLong-Term Incentive Plan (“LTIP”) Units in the Operating Partnership at January 31, 2009February 16, 2011 were 585528 and 1,18, respectively. The number of outstanding OP Units and Junior Convertible PreferenceLTIP Units as of January 31, 2009February 16, 2011 were 289,470,262307,338,881 and 7,367,401,971, respectively.RepurchasedIssued in the Quarter Ended December 31, 20082010The Operating Partnership repurchased the following OP Units during2008: Total Number
of OP Units
Purchased (1) Average Price
Paid Per
Unit (1) Total Number of
OP Units
Purchased as Part of
Publicly Announced
Plans or Programs (1) Dollar Value of
OP Units
that May Yet Be
Purchased Under
the Plans or
Programs (1) - $ - - $ 469,273,467 48,924 $ 32.97 48,924 $ 467,660,443 - $ - - $ 467,660,443 48,924 $ 32.97 48,924 (1) The OP Units repurchased during the quarter ended December 31, 2008 represent OP Units redeemed in response to repurchases of Common Shares under the Company’s publicly announced share repurchase program approved by its Board of Trustees. All 48,924 shares were repurchased from a Trustee at a price of $32.97 per share (the then current market price) to cover the minimum statutory tax withholding obligation related to the vesting of the Trustee’s restricted shares. On December 3, 2007, EQR’s Board of Trustees approved a $500.0 million share repurchase program, of which $467.7 million remains available for repurchase as of December 31, 2008.20082010 with respect to EQR’s Common Shares that may be issued under its existing equity compensation plans. Number of securities
to be issued upon
exercise of
outstanding options,
warrants and rights Weighted average
exercise price of
outstanding
options, warrants
and rights Number of securities
remaining available
for future issuance
under equity
compensation plans
(excluding securities
in column (a)) (a) (1) (b) (1) (c) (2)
approved by shareholders 9,473,259 $33.94 12,628,543
approved by shareholders N/A N/A N/A Number of securities remaining available Number of securities Weighted average for future issuance to be issued upon exercise price of under equity exercise of outstanding compensation plans outstanding options, options, warrants (excluding securities Plan Category warrants and rights and rights in column (a)) (a) (1) (b) (1) (c) (2) Equity compensation plans approved by shareholders 10,106,488 $ 33.00 8,799,709 Equity compensation plans not approved by shareholders N/A N/A N/A (1) (1) 996,011911,950 outstanding EQR Common Shares (all of which are restricted and subject to vesting requirements) that were granted under EQR’s Amended and Restated 1993 Share Option and Share Award Plan, as amended (the “1993 Plan”) and EQR’s 2002 Share Incentive Plan, as restated (the “2002 Plan”) and outstanding EQR Common Shares that have been purchased by employees and trustees under EQR’sEQR’S ESPP. Includes 8,742,8165,395,739 EQR Common Shares that may be issued under the 2002 Plan, of which only 25% may
| be in the form of restricted shares, and |
No awards may be granted under the 2002 Plan after February 20, 2012.
OP Units Issued in the Quarter Ended December 31, 2008
The Operating Partnership did not issue OP Units to its limited partners during the fourth quarter ended December 31, 2008.
OP Units are generally exchangeable into Common Shares of EQR on a one-for-one basis or, at the option of EQR and the Operating Partnership, the cash equivalent thereof, at any time one year after the date of issuance. Information with respect to unregistered OP Unit sales, if any, for the first three quarters of 2008 is contained in the Operating Partnership’s quarterly reports on Form 10-Q relating to such quarters.
19
| Year Ended December 31, | ||||||||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
OPERATING DATA: | ||||||||||||||||||||
Total revenues from continuing operations | $ | 2,103,204 | $ | 1,947,057 | $ | 1,702,541 | $ | 1,413,877 | $ | 1,229,707 | ||||||||||
Interest and other income | $ | 33,540 | $ | 20,144 | $ | 30,880 | $ | 68,315 | $ | 8,685 | ||||||||||
Income from continuing operations | $ | 42,659 | $ | 70,933 | $ | 32,241 | $ | 101,928 | $ | 42,935 | ||||||||||
Discontinued operations, net | $ | 404,376 | $ | 984,295 | $ | 1,115,863 | $ | 830,119 | $ | 481,229 | ||||||||||
Net income | $ | 447,035 | $ | 1,055,228 | $ | 1,148,104 | $ | 932,047 | $ | 524,164 | ||||||||||
Net income available to OP Units | $ | 432,513 | $ | 1,025,841 | $ | 1,104,340 | $ | 866,306 | $ | 449,811 | ||||||||||
Earnings per OP Unit – basic: | ||||||||||||||||||||
Income (loss) from continuing operations available to OP Units | $ | 0.10 | $ | 0.14 | $ | (0.04 | ) | $ | 0.12 | $ | (0.10 | ) | ||||||||
Net income available to OP Units | $ | 1.50 | $ | 3.44 | $ | 3.56 | $ | 2.83 | $ | 1.50 | ||||||||||
Weighted average OP Units outstanding | 287,631 | 298,392 | 310,452 | 306,579 | 300,683 | |||||||||||||||
Earnings per OP Unit – diluted: | ||||||||||||||||||||
Income (loss) from continuing operations available to OP Units | $ | 0.10 | $ | 0.14 | $ | (0.04 | ) | $ | 0.12 | $ | (0.10 | ) | ||||||||
Net income available to OP Units | $ | 1.49 | $ | 3.39 | $ | 3.56 | $ | 2.79 | $ | 1.50 | ||||||||||
Weighted average OP Units outstanding | 290,060 | 302,235 | 310,452 | 310,785 | 300,683 | |||||||||||||||
Distributions declared per OP Unit outstanding | $ | 1.93 | $ | 1.87 | $ | 1.79 | $ | 1.74 | $ | 1.73 | ||||||||||
BALANCE SHEET DATA (at end of period): | ||||||||||||||||||||
Real estate, before accumulated depreciation | $ | 18,690,239 | $ | 18,333,350 | $ | 17,235,175 | $ | 16,590,370 | $ | 14,852,621 | ||||||||||
Real estate, after accumulated depreciation | $ | 15,128,939 | $ | 15,163,225 | $ | 14,212,695 | $ | 13,702,230 | $ | 12,252,794 | ||||||||||
Total assets | $ | 16,535,110 | $ | 15,689,777 | $ | 15,062,219 | $ | 14,108,751 | $ | 12,656,306 | ||||||||||
Total debt | $ | 10,501,246 | $ | 9,508,733 | $ | 8,057,656 | $ | 7,591,073 | $ | 6,459,806 | ||||||||||
Minority Interests | $ | 25,520 | $ | 26,236 | $ | 26,814 | $ | 16,965 | $ | 9,557 | ||||||||||
Partners’ capital | $ | 5,290,275 | $ | 5,394,328 | $ | 6,268,867 | $ | 5,800,558 | $ | 5,598,553 | ||||||||||
OTHER DATA: | ||||||||||||||||||||
Total properties (at end of period) | 548 | 579 | 617 | 926 | 939 | |||||||||||||||
Total apartment units (at end of period) | 147,244 | 152,821 | 165,716 | 197,404 | 200,149 | |||||||||||||||
Funds from operations available to OP Units – basic (1) (2) | $ | 631,644 | $ | 723,484 | $ | 716,143 | $ | 784,625 | $ | 651,741 | ||||||||||
Cash flow provided by (used for): | ||||||||||||||||||||
Operating activities | $ | 755,027 | $ | 793,128 | $ | 755,466 | $ | 698,531 | $ | 707,061 | ||||||||||
Investing activities | $ | (343,803 | ) | $ | (200,645 | ) | $ | (259,472 | ) | $ | (592,201 | ) | $ | (555,279 | ) | |||||
Financing activities | $ | 428,739 | $ | (801,929 | ) | $ | (324,545 | ) | $ | (101,007 | ) | $ | (117,856 | ) | ||||||
| Year Ended December 31, | ||||||||||||||||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
OPERATING DATA: | ||||||||||||||||||||
| Total revenues from continuing operations | $ | 1,995,519 | $ | 1,856,503 | $ | 1,886,988 | $ | 1,739,444 | $ | 1,503,666 | ||||||||||
| Interest and other income | $ | 5,469 | $ | 16,585 | $ | 33,337 | $ | 19,660 | $ | 30,430 | ||||||||||
| (Loss) income from continuing operations | $ | (19,844 | ) | $ | 2,931 | $ | (40,054 | ) | $ | (4,982 | ) | $ | (29,983 | ) | ||||||
| Discontinued operations, net | $ | 315,827 | $ | 379,098 | $ | 476,467 | $ | 1,052,338 | $ | 1,177,600 | ||||||||||
| Net income | $ | 295,983 | $ | 382,029 | $ | 436,413 | $ | 1,047,356 | $ | 1,147,617 | ||||||||||
| Net income available to Units | $ | 282,341 | $ | 368,099 | $ | 419,241 | $ | 1,015,769 | $ | 1,100,721 | ||||||||||
| Earnings per Unit — basic: | ||||||||||||||||||||
| (Loss) from continuing operations available to Units | $ | (0.11 | ) | $ | (0.04 | ) | $ | (0.20 | ) | $ | (0.12 | ) | $ | (0.25 | ) | |||||
| Net income available to Units | $ | 0.95 | $ | 1.27 | $ | 1.46 | $ | 3.40 | $ | 3.55 | ||||||||||
| Weighted average Units outstanding | 296,527 | 289,167 | 287,631 | 298,392 | 310,452 | |||||||||||||||
| Earnings per Unit — diluted: | ||||||||||||||||||||
| (Loss) from continuing operations available to Units | $ | (0.11 | ) | $ | (0.04 | ) | $ | (0.20 | ) | $ | (0.12 | ) | $ | (0.25 | ) | |||||
| Net income available to Units | $ | 0.95 | $ | 1.27 | $ | 1.46 | $ | 3.40 | $ | 3.55 | ||||||||||
| Weighted average Units outstanding | 296,527 | 289,167 | 287,631 | 298,392 | 310,452 | |||||||||||||||
| Distributions declared per Unit outstanding | $ | 1.47 | $ | 1.64 | $ | 1.93 | $ | 1.87 | $ | 1.79 | ||||||||||
BALANCE SHEET DATA(at end of period): | ||||||||||||||||||||
| Real estate, before accumulated depreciation | $ | 19,702,371 | $ | 18,465,144 | $ | 18,690,239 | $ | 18,333,350 | $ | 17,235,175 | ||||||||||
| Real estate, after accumulated depreciation | $ | 15,365,014 | $ | 14,587,580 | $ | 15,128,939 | $ | 15,163,225 | $ | 14,212,695 | ||||||||||
| Total assets | $ | 16,184,194 | $ | 15,417,515 | $ | 16,535,110 | $ | 15,689,777 | $ | 15,062,219 | ||||||||||
| Total debt | $ | 9,948,076 | $ | 9,392,570 | $ | 10,483,942 | $ | 9,478,157 | $ | 8,017,008 | ||||||||||
| Redeemable Limited Partners | $ | 383,540 | $ | 258,280 | $ | 264,394 | $ | 345,165 | $ | 509,310 | ||||||||||
| Noncontrolling Interests — Partially Owned Properties | $ | 7,991 | $ | 11,054 | $ | 25,520 | $ | 26,236 | $ | 26,814 | ||||||||||
| Total partners’ capital | $ | 5,200,585 | $ | 5,163,459 | $ | 5,043,185 | $ | 5,079,739 | $ | 5,800,205 | ||||||||||
OTHER DATA: | ||||||||||||||||||||
| Total properties (at end of period) | 451 | 495 | 548 | 579 | 617 | |||||||||||||||
| Total apartment units (at end of period) | 129,604 | 137,007 | 147,244 | 152,821 | 165,716 | |||||||||||||||
| Funds from operations available to Units — basic (1) (3) (4) | $ | 622,786 | $ | 615,505 | $ | 618,372 | $ | 713,412 | $ | 712,524 | ||||||||||
| Normalized funds from operations available to Units — basic (2) (3) (4) | $ | 682,422 | $ | 661,542 | $ | 735,062 | $ | 699,029 | $ | 699,276 | ||||||||||
| Cash flow provided by (used for): | ||||||||||||||||||||
| Operating activities | $ | 732,693 | $ | 672,462 | $ | 755,252 | $ | 793,232 | $ | 755,774 | ||||||||||
| Investing activities | $ | (646,114 | ) | $ | 103,579 | $ | (344,028 | ) | $ | (200,749 | ) | $ | (259,780 | ) | ||||||
| Financing activities | $ | 151,541 | $ | (1,473,547 | ) | $ | 428,739 | $ | (801,929 | ) | $ | (324,545 | ) | |||||||
| (1) |
| The National Association of Real Estate Investment Trusts (“NAREIT”) defines funds from operations (“FFO”) (April 2002 White Paper) as net income (computed in accordance with accounting principles generally accepted in the United States (“GAAP”)), excluding gains (or losses) from sales of depreciable property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis. The April 2002 White Paper states that gain or |
20
| loss on sales of property is excluded from FFO for previously depreciated operating properties only. Once the Operating Partnership commences the conversion of apartment units to condominiums, it simultaneously discontinues depreciation of such property. | ||
| (2) | Normalized funds from operations (“Normalized FFO”) begins with |
| the impact of any expenses relating to asset impairment and valuation allowances; | ||
| • | property acquisition and other transaction costs related to mergers and acquisitions and pursuit cost write-offs (other expenses); | ||
| • | gains and losses from early debt extinguishment, including prepayment penalties, preference unit redemptions and the cost related to the implied option value of non-cash convertible debt discounts; | ||
| • | gains and losses on the sales of non-operating assets, including gains and losses from land parcel and condominium sales, net of the effect of income tax benefits or expenses; and | ||
| • | other miscellaneous non-comparable items. |
| (3) | The Operating Partnership believes that FFO and FFO available to |
real estate industry and by excluding gains or losses related to dispositions of depreciable property and excluding real estate depreciation (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 | ||
| (4) | FFO available to Units and Normalized FFO available to Units are calculated on a basis consistent with net income available to Units and reflects adjustments to net income for preferred distributions and premiums on redemption of preference units in accordance with accounting principles generally accepted in the United States. | |
| Note: See Item 7 for a reconciliation of net income to FFO, FFO available to Units, Normalized FFO and Normalized FFO available to Units. |
2010. 21other than entities owning interests in the Partially Owned Properties – Unconsolidated and certain other entities in which it has investments, each such subsidiary entity has been consolidated with the Operating Partnership for financial reporting purposes.purposes, except for an unconsolidated development land parcel and our military housing properties. Capitalized terms used herein and not defined are as defined elsewhere in this Annual Report on Form 10-K for the year ended December 31, 2008.The Operating Partnership does not currently intend to begin the development of any new wholly-owned projects but has a substantial number of properties under development now and may commence new development activities if conditions warrant. We may underestimatealso acquire multifamily properties that are unoccupied or in the costs necessary to bring an acquired property up to standards established for its intended market position or to complete a development property. Additionally, we expect that other major real estate investors with significant capital will compete with us for attractive investment opportunities or may also develop properties in markets where we focus our development efforts. This competition may increase prices for multifamily properties.early stages of lease up. We may not be unable to lease up these apartment properties on schedule, resulting in a position decreases in expected rental revenues and/or have the opportunity in the futurelower yields due to make suitable property acquisitions on favorable terms. To the extent that we do develop more properties if conditions warrant, we expect to do so ourselves in addition to co-investing with our development partners. The total number of development units, cost of developmentlower occupancy and estimated completion dates are subject to uncertainties arising from changing economic conditions (suchrates as the cost of labor and construction materials), competition and local government regulation;well as higher than expected
Sources of capital to the Operating Partnership or labor and materials required for maintenance, repair, capital expenditure or development may be more expensive than anticipated;
| concessions. We may underestimate the costs necessary to bring an acquired property up to standards established for its intended market position or to complete a development property. Additionally, we expect that other major real estate investors with significant capital will compete with us for attractive investment opportunities or may also develop properties in markets where we focus our development efforts. This competition (or lack thereof) may increase (or depress) prices for multifamily properties. We may not be in a position or have the opportunity in the future to make suitable property acquisitions on favorable terms. The total number of development units, costs of development and estimated completion dates are subject to uncertainties arising from changing economic conditions (such as the cost of labor and construction materials), competition and local government regulation; |
Occupancy levels and market rents may be adversely affected by national and local economic and market conditions including, without limitation, new construction and excess inventory of multifamily and single family housing, slow or negative employment growth, availability of low interest mortgages for single family home buyers and the potential for geopolitical instability, all of which are beyond the Operating Partnership’s control; and
| • | Debt financing and other capital required by the Operating Partnership may not be available or may only be available on adverse terms; | ||
| • | Labor and materials required for maintenance, repair, capital expenditure or development may be more expensive than anticipated; | ||
| • | Occupancy levels and market rents may be adversely affected by national and local economic and market conditions including, without limitation, new construction and excess inventory of multifamily housing and single family housing, slow or negative employment growth, availability of low interest mortgages for single family home buyers and the potential for geopolitical instability, all of which are beyond the Operating Partnership’s control; and | ||
| • | Additional factors as discussed in Part I of this Annual Report on Form 10-K, particularly those under “Item 1A.Risk Factors”. |
Additional factors as discussed in Part I of this Annual Report on Form 10-K, particularly those under “Item 1A. Risk Factors”.
Forward-looking statements and related uncertainties are also included in Notes 2, 5, 11 and 18 in the Notes to Consolidated Financial Statements in this report.
Leveraging our size and scale in four critical ways:
Investinginvests in apartment communities located in strategically targeted markets with the goal of maximizing our risk adjusted total return (operating income plus capital appreciation) on invested capital.
Meeting We use technology to engage our customers in the needsway that they want to be engaged. Many of our residents by offering a wide arrayutilize our web-based resident portal which allows them to review their account and make payments, provide feedback and make service requests on-line.
22
Engaging, retaining and attracting the best employees by providing them with the education, resources and opportunities to succeed; and
Sharing resources, customers and best practices in property management and across the enterprise.
Owning a highly diversified portfolioour properties by investing in target markets definedthat are characterized by a combinationconditions favorable to multifamily property appreciation. These markets generally feature one or more of the following criteria:
High barrier-to-entry (low supply);
Strong economic predictors (high demand); and
| • | High barriers to entry where, because of land scarcity or government regulation, it is difficult or costly to build new apartment properties leading to low supply; | ||
| • | High single family home prices making our apartments a more economical housing choice; | ||
| • | Strong economic growth leading to household formation and job growth, which in turn leads to high demand for our apartments; and | ||
| • | An attractive quality of life leading to high demand and retention and allowing us to more readily increase rents. |
Attractive quality of life (high demand and retention).
Giving residents reasons to stay with the Operating Partnership by providing a range of product options available in our diversified portfolio and by enhancing their experience through our employees and our services.
Being open and responsive to market realities to take advantage of investment opportunities that align with our long-term vision.
Acquisition, Development and Disposition Strategies
The Operating Partnership anticipates that future property acquisitions, developments and dispositions will occur within the United States. Acquisitions and developments may be financed from various sources of capital, which may include retained cash flow, issuance of additional equity and debt securities, sales of properties, joint venture agreements and collateralized and uncollateralized borrowings. In addition, the Operating Partnership may acquire properties in transactions that include the issuance of limited partnership interests in the Operating Partnership (“OP Units”) as consideration for the acquired properties. Such transactions may, in certain circumstances, enable the sellers to defer, in
whole or in part, the recognition of taxable income or gain that might otherwise result from the sales. ERPOP may also acquire land parcels to hold and/or sell based on market opportunities.
When evaluating potential The Operating Partnership may also seek to acquire properties by purchasing defaulted or distressed debt that encumbers desirable properties in the hope of obtaining title to property through foreclosure or deed-in-lieu of foreclosure proceedings. The Operating Partnership has also, in the past, converted some of its properties and sold them as condominiums but is not currently active in this line of business.
strategically targeted markets;
income levels and employment growth trends in the relevant market;
employment and household growth and net migration As part of the relevant market’s population;
barriers to entry that would limit competition (zoning laws, building permit availability, supply of undeveloped or developable real estate, local building costs and construction costs, among other factors);
the location, construction quality, condition and design of the property;
the current and projected cash flow of the property and the ability to increase cash flow;
the potential for capital appreciation of the property;
the terms of resident leases, including the potential for rent increases;
the potential for economic growth and the tax and regulatory environment of the community in which the property is located;
the occupancy and demand by residents for properties of a similar type in the vicinity (the overall market and submarket);
the prospects for liquidity through sale, financing or refinancing of the property;
the benefits of integration into existing operations;
purchase prices and yields of available existing stabilized properties, if any;
competition from existing multifamily properties, comparably priced single family homes or rentals, residential properties under development and the potential for the construction of new multifamily properties in the area; and
opportunistic selling based on demand and price of high quality assets, including condominium conversions.
The Operating Partnership generally reinvests the proceeds received from property dispositions primarily to achieve its acquisition, development and rehab strategies and at times to fund its debt and EQR’s equity repurchase activities. In addition, when feasible,strategy, the Operating Partnership purchases completed and fully occupied apartment properties, partially completed or partially unoccupied properties or land on which apartment properties can be constructed. We intend to hold a diversified portfolio of assets across our target markets. Currently, no single metropolitan area accounts for more than 17% of our NOI, though no guarantee can be made that NOI concentration may structure these transactionsnot increase in the future.
well as extensively train our customer service specialists in maintaining the equipment and appliances on our property sites. We actively promote from within and many senior corporate and property leaders have risen from entry level or junior positions. We monitor our employees’ engagement by surveying them annually and have consistently received high engagement scores.
The slowdown in the economy, which accelerated in the fourth quarter
23
After two consecutive years of modest expense growth (same store expenses grew 2.2% between 2008 and 2007 and 2.1% between 2007 and 2006),earnings by decreasing debt prefunding costs. Finally, the Operating Partnership anticipateswas aggressive in acquiring $1.5 billion of assets in its target markets in 2010. Improvement materialized throughout 2010 and as we enter 2011, we expect strong growth in same store revenue (anticipated increases ranging from 4.0% to 5.0%) and NOI (anticipated increases ranging from 5.0% to 7.5%) and are optimistic that 2009 expensesthe improvement realized in 2010 will increase at a higher rate primarily due to cost pressures from non-controllable areas such as utilities and real estate taxes. The combination of expected declines in revenues and higher overall expense levels will have a negative impact on the Operating Partnership’s results of operations for 2009.
The continued credit crisis has negatively impacted the availability and pricing of debt capital. During this time, the multifamily residential sector has benefited from the continued liquidity provided by Fannie Mae and Freddie Mac. A vast majority of the properties we sold this year were financedbe sustained for the purchaser by one of these agencies. Furthermore, Fannie Mae and Freddie Mac provided us with approximately $1.6 billion of secured mortgage financing in 2008 at attractive rates when comparedforeseeable future.
increase borrowing costs and would significantly reduce our sales of assets.
In response to the recession and liquidity issues prevalent in the debttarget markets, we took a number of steps to better position ourselves. In early 2008, we began pre-funding our maturing debt obligations with approximately $1.6 billion in secured mortgage financing obtained from Fannie Mae and Freddie Mac. We also significantly reduced our acquisition activity. During the second half of 2008, we only acquired one property while we continued selling non-core assets. We expect to continue to be a net seller of assets in 2011 in contrast to being a net buyer of assets in 2010. The Operating Partnership acquired 16 consolidated properties consisting of 4,445 apartment units for $1.5 billion and six land parcels for $68.9 million during 2009 should current conditions continue. Additionally,the year ended December 31, 2010. While competition for the properties we significantly reducedwere interested in acquiring increased as 2010 progressed due to the overall improvement in market fundamentals, we were able to close several, of what we believe are, long-term, value added acquisition opportunities. Our acquisition pipeline has moderated and we expect a greater concentration of our development activities, starting only two new projects2011 acquisitions to occur in the first half of 2008 and none in the secondlatter half of the year. We also reducedbelieve our access to capital, our ability to execute large, complex transactions and our ability to efficiently stabilize large scale lease up properties provide us with a competitive advantage. During the numberyear ended December 31, 2010, the Operating Partnership sold 35 consolidated properties consisting of planned development projects we will undertake in7,171 apartment units for $718.4 million and 27 unconsolidated properties consisting of 6,275 apartment units generating cash proceeds to the futureOperating Partnership of $26.9 million, as well as 2 condominium units for $0.4 million and took a $116.4 million impairment charge to reduce the value of five assets that we no longer plan on pursuing.one land parcel for $4.0 million. We do not currently anticipate starting any new wholly-owned development projects during 2009 unless market conditions improve significantly. Finally, during 2009 we also expect to continue strategic dispositions and see an increase in dispositions in 2011 as we believe there is currently a robust market and favorable pricing for certain of our focus on our expense control initiatives.
non-strategic assets. Our specific current expectations regarding our results for 2009 and certain items that will affect them are set forth underdispositions in 2010 were at higher capitalization (“cap”) rates (see definition in Results of Operations below.
Operations) than the acquisitions we completed. We expect this to continue in 2011 and expect to experience dilution from past and future transactions.
Despite There is significant uncertainty surrounding the challenging conditions noted above,futures of Fannie Mae and Freddie Mac. Any changes to their mandates could have a significant impact on the Operating Partnership and may, among other things, lead to lower values for our disposition assets and higher interest rates on our borrowings. Such changes may also provide an advantage to us by making the cost of financing single family home ownership more expensive and provide us a competitive advantage given the size of our balance sheet and the multiple sources of capital to which we have access.
We believe we are well-positioned with aour strong balance sheet and sufficientample liquidity will allow us to coverfund our debt maturities and development fundings in the near term, whichand should also allow us to take advantage of investment opportunities should distressed assets become available at significant discounts. Whenin the future. As economic conditions continue to improve, the short-term nature of our leases and the limited supply of new rental housing being constructed should allow us to quickly realize revenue growth and improvement in our operating results.
24
Acquired $380.7 million of apartment properties consisting of 7 properties and 2,141 units and an uncompleted development property for $31.7 million and invested $2.4 million to obtain the management contract rights and towards the redevelopment of a military housing project consisting of 978 units, all of which we deem to be in our strategic targeted markets; and
| • | Acquired $1.1 billion of apartment properties consisting of 14 consolidated properties and 3,207 apartment units at a weighted average cap rate (see definition below) of 5.4% and six land parcels for $68.9 million, all of which we deem to be in our strategic targeted markets; | ||
| • | Acquired one unoccupied property in the second quarter of 2010 (425 Mass in Washington, D.C.) for $166.8 million consisting of 559 apartment units that is expected to stabilize in its third year of ownership at an 8.5% yield on cost and one property in the third quarter of 2010 (Vantage Pointe in San Diego, CA) for $200.0 million consisting of 679 apartment units that was in the early stages of lease up and is expected to stabilize in its third year of ownership at a 7.0% yield on cost; | ||
| • | Acquired the 75% equity interest it did not own in seven previously unconsolidated properties consisting of 1,811 apartment units at an implied cap rate of 8.4% in exchange for an approximate $30.0 million payment to its joint venture partner; | ||
| • | Sold $718.4 million of consolidated apartment properties consisting of 35 properties and 7,171 apartment units at a weighted average cap rate of 6.7%, 2 condominium units for $0.4 million and one land parcel for $4.0 million, the majority of which was in exit or less desirable markets; and | ||
| • | Sold the last of its 25% equity interests in an institutional joint venture consisting of 27 unconsolidated properties containing 6,275 apartment units. These properties were valued in their entirety at $417.8 million which results in an implied weighted average cap rate of 7.5% (generating cash to the Operating Partnership, net of debt repayments, of $26.9 million). |
Sold $896.7 million of apartment properties consisting of 41 properties and 10,127 units, as well as 130 condominium units for $26.1 million and a land parcel for $3.3 million.
Year Ended December 31, 2007:
Acquired $1.7 billion of apartment properties consisting of 36 properties and 8,167 units and $212.8 million of land parcels, all of which we deem to be in our strategic targeted markets; and
| • | Acquired $145.0 million of apartment properties consisting of two properties and 566 apartment units (excluding the Operating Partnership’s buyout of its partner’s interest in one previously unconsolidated property) and a long-term leasehold interest in a land parcel for $11.5 million, all of which we deem to be in our strategic targeted markets; and | ||
| • | Sold $1.0 billion of apartment properties consisting of 60 properties and 12,489 apartment units (excluding the Operating Partnership’s buyout of its partner’s interest in one previously unconsolidated property), as well as 62 condominium units for $12.0 million, the majority of which was in exit or less desirable markets. |
Sold $1.9 billion of apartment properties consisting of 73 properties and 21,563 units, as well as 617 condominium units for $164.2 million and $50.0 million of land parcels.
The Operating Partnership’s primary financial measure for evaluating each of its apartment communities is net operating income (“NOI”). NOI represents rental income less property and maintenance expense, real estate tax and insurance expense and property management expense. The Operating Partnership believes that NOI is helpful to
investors as a supplemental measure of theits operating performance of a real estate company because it is a direct measure of the actual operating results of the Operating Partnership’s apartment communities.
The cap rate is generally the first year NOI yield (net of replacements) on the Operating Partnership’s investment.
25
2008
Year over Year 2009
Same Store Results/Statistics
$ in thousands (except for Average Rental Rate) – 115,051— 112,042 Same Store Units
| Results | Statistics | |||||||||||||||||||||
Description | Revenues | Expenses | NOI | Average Rental Rate (1) | Occupancy | Turnover | ||||||||||||||||
2008 | $ | 1,739,004 | $ | 632,366 | $ | 1,106,638 | $ | 1,334 | 94.5 | % | 63.5 | % | ||||||||||
2007 | $ | 1,685,196 | $ | 618,882 | $ | 1,066,314 | $ | 1,292 | 94.6 | % | 63.6 | % | ||||||||||
Change | $ | 53,808 | $ | 13,484 | $ | 40,324 | $ | 42 | (0.1 | %) | (0.1 | %) | ||||||||||
Change | 3.2 | % | 2.2 | % | 3.8 | % | 3.3 | % | ||||||||||||||
| Results | Statistics | |||||||||||||||||||||||
| Average | ||||||||||||||||||||||||
| Rental | ||||||||||||||||||||||||
| Description | Revenues | Expenses | NOI | Rate (1) | Occupancy | Turnover | ||||||||||||||||||
| 2010 | $ | 1,728,268 | $ | 654,663 | $ | 1,073,605 | $ | 1,358 | 94.8 | % | 56.7 | % | ||||||||||||
| 2009 | $ | 1,730,335 | $ | 648,508 | $ | 1,081,827 | $ | 1,375 | 93.7 | % | 61.5 | % | ||||||||||||
| Change | $ | (2,067 | ) | $ | 6,155 | $ | (8,222 | ) | $ | (17 | ) | 1.1 | % | (4.8 | %) | |||||||||
| Change | (0.1 | %) | 0.9 | % | (0.8 | %) | (1.2 | %) | ||||||||||||||||
| ||
| (1) | Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period. |
| % of Actual | ||||||||||||||||||||
| 2010 | ||||||||||||||||||||
| Actual | Actual | $ | % | Operating | ||||||||||||||||
| 2010 | 2009 | Change | Change | Expenses | ||||||||||||||||
| Real estate taxes | $ | 174,131 | $ | 177,180 | $ | (3,049 | ) | (1.7 | %) | 26.6 | % | |||||||||
| On-site payroll (1) | 156,668 | 156,446 | 222 | 0.1 | % | 23.9 | % | |||||||||||||
| Utilities (2) | 102,553 | 100,441 | 2,112 | 2.1 | % | 15.7 | % | |||||||||||||
| Repairs and maintenance (3) | 97,166 | 94,223 | 2,943 | 3.1 | % | 14.8 | % | |||||||||||||
| Property management costs (4) | 69,995 | 64,022 | 5,973 | 9.3 | % | 10.7 | % | |||||||||||||
| Insurance | 21,545 | 21,525 | 20 | 0.1 | % | 3.3 | % | |||||||||||||
| Leasing and advertising | 14,892 | 16,029 | (1,137 | ) | (7.1 | %) | 2.3 | % | ||||||||||||
| Other on-site operating expenses (5) | 17,713 | 18,642 | (929 | ) | (5.0 | %) | 2.7 | % | ||||||||||||
| Same store operating expenses | $ | 654,663 | $ | 648,508 | $ | 6,155 | 0.9 | % | 100.0 | % | ||||||||||
| (1) | On-site payroll — Includes payroll and related expenses for on-site personnel including property managers, leasing consultants and maintenance staff. | |
| (2) | Utilities — Represents gross expenses prior to any recoveries under the Resident Utility Billing System (“RUBS”). Recoveries are reflected in rental income. | |
| (3) | Repairs and maintenance — Includes general maintenance costs, unit turnover costs including interior painting, routine landscaping, |
26
| security, exterminating, fire protection, snow removal, elevator, roof and parking lot repairs and other miscellaneous building repair costs. | ||
| (4) | Property management costs — Includes payroll and related expenses for departments, or portions of departments, that directly support on-site management. These include such departments as regional and corporate property management, property accounting, human resources, training, marketing and revenue management, procurement, real estate tax, property legal services and information technology. | |
| (5) | Other on-site operating expenses — Includes administrative costs such as office supplies, telephone and data charges and association and business licensing fees. |
| Year Ended December 31, | ||||||||
| 2008 | 2007 | |||||||
| (Amounts in thousands) | ||||||||
Operating income | $ | 500,112 | $ | 539,128 | ||||
Adjustments: | ||||||||
Non-same store operating results | (148,956 | ) | (82,826 | ) | ||||
Fee and asset management revenue | (10,715 | ) | (9,183 | ) | ||||
Fee and asset management expense | 7,981 | 8,412 | ||||||
Depreciation | 591,162 | 562,290 | ||||||
General and administrative | 44,951 | 46,767 | ||||||
Impairment | 122,103 | 1,726 | ||||||
Same store NOI | $ | 1,106,638 | $ | 1,066,314 | ||||
| Year Ended December 31, | ||||||||
| 2010 | 2009 | |||||||
| (Amounts in thousands) | ||||||||
| Operating income | $ | 442,001 | $ | 496,601 | ||||
| Adjustments: | ||||||||
| Non-same store operating results | (105,960 | ) | (21,336 | ) | ||||
| Fee and asset management revenue | (9,476 | ) | (10,346 | ) | ||||
| Fee and asset management expense | 5,140 | 7,519 | ||||||
| Depreciation | 656,633 | 559,271 | ||||||
| General and administrative | 39,887 | 38,994 | ||||||
| Impairment | 45,380 | 11,124 | ||||||
| Same store NOI | $ | 1,073,605 | $ | 1,081,827 | ||||
2011:
Physical occupancy | ||
Revenue change | ||
Expense change | ||
NOI change | ||
While the operations of the non-same store assets have been negatively impacted during the year ended December 31, 2010 similar to the same store assets, the non-same store assets have contributed a greater percentage of total NOI to the Operating Partnership’s overall operating results primarily due to increasing occupancy for properties in lease-up and a longer ownership period in 2010 than 2009. This increase primarily resulted from:
| • | Development and other miscellaneous properties in lease-up of $32.4 million; | ||
| • | Newly stabilized development and other miscellaneous properties of $0.2 million; | ||
| • | Properties acquired in 2009 and 2010 of $56.2 million; and | ||
| • | Partially offset by an allocation of property management costs not included in same store results and operating activities from other miscellaneous operations, such as the Operating Partnership’s corporate housing business. |
27
28
| • | $57.6 million in lower net gains on sales of discontinued operations in 2009 vs. 2008; | ||
| • | $84.0 million in lower property NOI in 2009 vs. 2008, primarily driven by $51.6 million in lower same store NOI and dilution from transaction activities, partially offset by higher NOI contributions from lease-up properties; and | ||
| • | Partially offset by $105.3 million in lower impairment losses in 2009 vs. 2008. |
| Results | Statistics | |||||||||||||||||||||||
| Average | ||||||||||||||||||||||||
| Rental | ||||||||||||||||||||||||
| Description | Revenues | Expenses | NOI | Rate (1) | Occupancy | Turnover | ||||||||||||||||||
| 2009 | $ | 1,725,774 | $ | 644,294 | $ | 1,081,480 | $ | 1,352 | 93.8 | % | 61.0 | % | ||||||||||||
| 2008 | $ | 1,778,183 | $ | 645,123 | $ | 1,133,060 | $ | 1,383 | 94.5 | % | 63.7 | % | ||||||||||||
| Change | $ | (52,409 | ) | $ | (829 | ) | $ | (51,580 | ) | $ | (31 | ) | (0.7 | %) | (2.7 | %) | ||||||||
| Change | (2.9 | %) | (0.1 | %) | (4.6 | %) | (2.2 | %) | ||||||||||||||||
| (1) | Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period. |
29
| % of Actual | ||||||||||||||||||||
| 2009 | ||||||||||||||||||||
| Actual | Actual | $ | % | Operating | ||||||||||||||||
| 2009 | 2008 | Change | Change | Expenses | ||||||||||||||||
| Real estate taxes | $ | 173,113 | $ | 171,234 | $ | 1,879 | 1.1 | % | 26.9 | % | ||||||||||
| On-site payroll (1) | 155,912 | 156,601 | (689 | ) | (0.4 | %) | 24.2 | % | ||||||||||||
| Utilities (2) | 100,184 | 99,045 | 1,139 | 1.1 | % | 15.5 | % | |||||||||||||
| Repairs and maintenance (3) | 94,556 | 95,142 | (586 | ) | (0.6 | %) | 14.7 | % | ||||||||||||
| Property management costs (4) | 63,854 | 67,126 | (3,272 | ) | (4.9 | %) | 9.9 | % | ||||||||||||
| Insurance | 21,689 | 20,890 | 799 | 3.8 | % | 3.4 | % | |||||||||||||
| Leasing and advertising | 15,664 | 15,043 | 621 | 4.1 | % | 2.4 | % | |||||||||||||
| Other on-site operating expenses (5) | 19,322 | 20,042 | (720 | ) | (3.6 | %) | 3.0 | % | ||||||||||||
| Same store operating expenses | $ | 644,294 | $ | 645,123 | $ | (829 | ) | (0.1 | %) | 100.0 | % | |||||||||
| (1) | On-site payroll — Includes payroll and related expenses for on-site personnel including property managers, leasing consultants and maintenance staff. | |
| (2) | Utilities — Represents gross expenses prior to any recoveries under the Resident Utility Billing System (“RUBS”). Recoveries are reflected in rental income. | |
| (3) | Repairs and maintenance — Includes general maintenance costs, 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 costs. | |
| (4) | Property management costs — Includes payroll and related expenses for departments, or portions of departments, that directly support on-site management. These include such departments as regional and corporate property management, property accounting, human resources, training, marketing and revenue management, procurement, real estate tax, property legal services and information technology. | |
| (5) | Other on-site operating expenses — Includes administrative costs such as office supplies, telephone and data charges and association and business licensing fees. |
| • | Development and other miscellaneous properties in lease-up of $22.4 million; | ||
| • | Newly stabilized development and other miscellaneous properties of $1.6 million; | ||
| • | Properties acquired in 2008 and 2009 of $11.9 million; and | ||
| • | Partially offset by operating activities from other miscellaneous operations. |
McChord.
travel expenses.
30
tax consulting costs.
ended December 31, 2008,2009, the Operating Partnership capitalized interest costs of approximately $60.1$34.9 million as compared to $45.1$60.1 million for the year ended December 31, 2007.2008. This capitalization of interest primarily relates to consolidated projects under development. The effective interest cost on all indebtedness for the year ended December 31, 20082009 was 5.56%5.62% as compared to 5.96%5.56% for the year ended December 31, 2007. The Operating Partnership anticipates that interest expense will approximate $475.0 million to $495.0 million for the year ending December 31, 2009. The above assumption is based on current expectations and is forward-looking.
2008.
Washington, D.C.
the operating performance of these properties.
2008.
2009.
For the year ended December 31, 2007, income from continuing operations increased by approximately $38.7 million when compared to the year ended December 31, 2006. The increase in continuing operations is discussed below.
Revenues from the 2007 Same Store Properties increased $67.2 million primarily as a result of higher rental rates charged to residents. Expenses from the 2007 Same Store Properties increased $12.6 million primarily due to higher payroll, building, utility costs, insurance and real estate taxes. The following tables provide comparative same store results and statistics for the 2007 Same Store Properties:
2007 vs. 2006
Year over Year Same Store Results/Statistics
$ in thousands (except for Average Rental Rate) – 115,857 Same Store Units
| Results | Statistics | |||||||||||||||||||||
Description | Revenues | Expenses | NOI | Average Rental Rate (1) | Occupancy | Turnover | ||||||||||||||||
2007 | $ | 1,643,513 | $ | 607,691 | $ | 1,035,822 | $ | 1,250 | 94.7 | % | 63.3 | % | ||||||||||
2006 | $ | 1,576,322 | $ | 595,074 | $ | 981,248 | $ | 1,199 | 94.7 | % | 64.9 | % | ||||||||||
Change | $ | 67,191 | $ | 12,617 | $ | 54,574 | $ | 51 | 0.0 | % | (1.6 | %) | ||||||||||
Change | 4.3 | % | 2.1 | % | 5.6 | % | 4.3 | % | ||||||||||||||
|
|
Non-same store operating results increased $106.1 million and consist primarily of properties acquired in calendar years 2007 and 2006 as well as operations from completed development properties and our corporate housing business.
See also Note 20 in the Notes to Consolidated Financial Statements for additional discussion regarding the Operating Partnership’s segment disclosures.
Fee and asset management revenues, net of fee and asset management expenses, increased $0.6 million primarily as a result of an increase in property management fees from unconsolidated entities along with a decrease in asset management expenses from managing fewer properties for third parties and unconsolidated entities. As of December 31, 2007 and 2006, the Operating Partnership managed 14,472 units and 15,020 units, respectively, primarily for unconsolidated entities and our military housing venture at Fort Lewis.
Property management expenses from continuing operations include off-site expenses associated with the self-management of the Operating Partnership’s properties as well as management fees paid to any third party management companies. These expenses decreased by approximately $8.7 million or 9.0%. This decrease is primarily attributable to lower overall payroll costs, various reserve adjustments for workers compensation and medical costs and lower training costs associated with the completion of a majority of the rollout of a new property management system, partially offset by higher legal and professional fees.
Depreciation expense from continuing operations, which includes depreciation on non-real estate assets, increased $79.6 million primarily as a result of additional depreciation expense on newly acquired properties and capital expenditures for all properties owned.
General and administrative expenses from continuing operations, which include corporate operating expenses, increased approximately $2.6 million between the periods under comparison. This increase was primarily due to an increase in restricted share expense and severance costs associated with the resignation of two of EQR’s executives as well as less expense recovery related to a certain lawsuit in Florida (see Note 21), partially offset by a decrease in profit sharing.
Impairment from continuing operations decreased $32.3 million primarily due to an impairment charge on goodwill of $30.0 million taken in 2006 related to the corporate housing business. In addition, in 2006 the Operating Partnership wrote-off $2.0 million of various deferred sales costs following the decision to halt the condominium conversion and sale process at five assets.
Interest and other income from continuing operations decreased approximately $10.7 million primarily as a result of $14.7 million of forfeited deposits for various terminated transactions along with $3.7 million in proceeds from eBay’s acquisition of Rent.com received during the year ended December 31, 2006. This was partially offset by $4.1 million received in 2007 for insurance litigation settlement proceeds, a $2.7 million increase in interest earned on 1031 exchange and earnest money deposits and a $0.7 million increase in interest earned on short-term investments.
Interest expense from continuing operations, including amortization of deferred financing costs, increased approximately $67.3 million primarily as a result of higher overall debt levels outstanding due to the Company’s share repurchase activity as well as the timing of acquisitions and dispositions, partially offset by lower overall effective interest rates. During the year ended December 31, 2007, the Operating Partnership capitalized interest costs of approximately $45.1 million as compared to $20.7 million for the year ended December 31, 2006. This capitalization of interest primarily relates to consolidated projects under development. The effective interest cost on all indebtedness for the year ended December 31, 2007 was 5.96% as compared to 6.21% for the year ended December 31, 2006.
Income and other tax expense from continuing operations decreased approximately $1.8 million primarily due to a taxable gain incurred in 2006 on a partially owned land parcel, partially offset by refunds received in 2006 as a result of a change in tax status of a portfolio of partially owned consolidated properties.
Income from investments in unconsolidated entities increased approximately $1.0 million between the periods under comparison. This increase is primarily due to the sale of the Operating Partnership’s 7.075% ownership interest in Wellsford Park Highlands Corporation, an entity which owns a condominium development in Denver, Colorado and profit participation received from the sale of condominium units at a development project that was sold in 2003.
Net gain on sales of unconsolidated entities increased $2.3 million primarily as a result of a $2.6 million gain on the sale of an unconsolidated institutional joint venture property during the year ended December 31, 2007.
Net gain on sales of land parcels increased $3.6 million primarily as a result of higher net gains realized in 2007 on the sales of land parcels compared to the net gains realized in 2006.
Discontinued operations, net decreased approximately $131.6 million between the periods under comparison. This decrease is primarily due to a significant decrease in the number of properties sold during the year ended December 31, 2007 compared to the same period in 2006, as well as the mix of properties sold in each year. See Note 13 in the Notes to Consolidated Financial Statements for further discussion.
Liquidity and Capital Resources
31
| • | Disposed of 35 consolidated properties, 27 unconsolidated properties, 2 condominium units and one land parcel, receiving net proceeds of approximately $699.6 million; | ||
| • | Obtained $173.6 million in new mortgage financing; | ||
| • | Issued $600.0 million of unsecured notes receiving net proceeds of $595.4 million before underwriting fees and other expenses; and | ||
| • | Issued approximately 8.8 million Units (including EQR Common Shares issued under EQR’s ATM program — see further discussion below) and received net proceeds of $406.2 million. | ||
| During the year ended December 31, 2010, the above proceeds were primarily utilized to: | |||
| • | Acquire 16 rental properties and six land parcels for approximately $1.2 billion; | ||
| • | Acquire the 75% equity interest it did not own in seven previously unconsolidated properties consisting of 1,811 apartment units in exchange for an approximate $26.9 million payment to its joint venture partner (net of $3.1 million in cash acquired); | ||
| • | Invest $131.3 million primarily in development projects; | ||
| • | Repurchase 58,130 OP Units, utilizing cash of $1.9 million (see Note 3); | ||
| • | Repay $652.1 million of mortgage loans; and | ||
| • | Settle a forward starting swap, utilizing cash of $10.0 million. |
Obtained $1.6 billion in new mortgage financing and terminated nine forward starting swaps designatedfrom all equity offerings to hedge $450.0 millionthe capital of the total loan issuances, making payments of $26.7 million;
Obtained anOperating Partnership in exchange for additional $248.5 million of new mortgage loans primarily on development properties; and
Issued approximately 1.2 million OP Units (on a one-for-one Common Share per OP Unit basis). EQR may, but shall have no obligation to, sell Common Shares through the ATM share offering program in amounts and received net proceedsat times to be determined by EQR. Actual sales will depend on a variety of $30.8 million.
factors to be determined by EQR from time to time, including (among others) market conditions, the trading price of EQR’s Common Shares and determinations of the appropriate sources of funding for EQR. During the year ended December 31, 2008,2010, EQR issued approximately 6.2 million Common Shares at an average price of $47.45 per share for total consideration of approximately $291.9 million through the above proceeds were primarily utilized to:
Invest $521.5ATM share offering program. During the year ended December 31, 2009, EQR issued approximately 3.5 million primarily in development projects;
Acquire seven rental properties and one uncompleted development property, utilizing cash of $388.1 million;
Invest $2.4 million in a military housing project located in the state of Washington;
Repurchase 0.2 million OP Units and settle 0.1 million OP Units, utilizing cash of $12.5 million (see Note 3);
Repay $130.0 million of fixed rate private notes;
Repurchase $174.0 million of fixed rate public notes; and
Repay $435.4 million of mortgage loans.
Depending on its analysis of market prices, economic conditions and other opportunities for the investment of available capital, the CompanyEQR may repurchase its Common Shares pursuant to its existing share repurchase program authorized by the Board of Trustees. EQR repurchased $7.9$1.9 million (220,085(58,130 shares at an average price per share of $35.93)$32.46) of its Common Shares (all related to the vesting of employee restricted shares) during the year ended December 31, 2008.2010. Concurrent with these transactions, the Operating Partnership repurchased and retired 220,08558,130 OP Units previously issued to EQR. As of December 31, 2008,2010, EQR had authorization to repurchase an additional $467.7$464.6 million of its shares. See Note 3 in the Notes to Consolidated Financial Statements for further discussion.
32
2010
(Amounts in thousands)
| Amounts (1) | % of Total | Weighted Average Rates (1) | Weighted Average Maturities (years) | ||||||||
Secured | $ | 5,036,930 | 48.0 | % | 5.18 | % | 8.3 | ||||
Unsecured | 5,464,316 | 52.0 | % | 5.46 | % | 5.5 | |||||
Total | $ | 10,501,246 | 100.0 | % | 5.34 | % | 6.9 | ||||
Fixed Rate Debt: | |||||||||||
Secured – Conventional | $ | 3,805,652 | 36.2 | % | 6.00 | % | 7.2 | ||||
Unsecured – Public/Private | 4,701,372 | 44.8 | % | 5.69 | % | 5.7 | |||||
Unsecured – Tax Exempt | 75,790 | 0.7 | % | 5.07 | % | 20.5 | |||||
Fixed Rate Debt | 8,582,814 | 81.7 | % | 5.80 | % | 6.5 | |||||
Floating Rate Debt: | |||||||||||
Secured – Conventional | 595,388 | 5.7 | % | 3.78 | % | 2.4 | |||||
Secured – Tax Exempt | 635,890 | 6.1 | % | 2.50 | % | 21.6 | |||||
Unsecured – Public/Private | 651,554 | 6.2 | % | 3.89 | % | 1.5 | |||||
Unsecured – Tax Exempt | 35,600 | 0.3 | % | 1.05 | % | 20.0 | |||||
Unsecured – Revolving Credit Facility | - | - | 4.31 | % | 3.1 | ||||||
Floating Rate Debt | 1,918,432 | 18.3 | % | 3.39 | % | 8.5 | |||||
Total | $ | 10,501,246 | 100.0 | % | 5.34 | % | 6.9 | ||||
| Weighted | ||||||||||||||||
| Weighted | Average | |||||||||||||||
| Average | Maturities | |||||||||||||||
| Amounts (1) | % of Total | Rates (1) | (years) | |||||||||||||
| Secured | $ | 4,762,896 | 47.9 | % | 4.79 | % | 8.1 | |||||||||
| Unsecured | 5,185,180 | 52.1 | % | 4.96 | % | 4.5 | ||||||||||
| Total | $ | 9,948,076 | 100.0 | % | 4.88 | % | 6.2 | |||||||||
| Fixed Rate Debt: | ||||||||||||||||
| Secured — Conventional | $ | 3,831,393 | 38.5 | % | 5.68 | % | 6.9 | |||||||||
| Unsecured — Public/Private | 4,375,860 | 44.0 | % | 5.78 | % | 5.1 | ||||||||||
| Fixed Rate Debt | 8,207,253 | 82.5 | % | 5.73 | % | 5.9 | ||||||||||
| Floating Rate Debt: | ||||||||||||||||
| Secured — Conventional | 326,009 | 3.3 | % | 2.56 | % | 0.7 | ||||||||||
| Secured — Tax Exempt | 605,494 | 6.1 | % | 0.48 | % | 20.4 | ||||||||||
| Unsecured — Public/Private | 809,320 | 8.1 | % | 1.72 | % | 1.3 | ||||||||||
| Unsecured — Revolving Credit Facility | — | — | 0.66 | % | 1.2 | |||||||||||
| Floating Rate Debt | 1,740,823 | 17.5 | % | 1.39 | % | 7.5 | ||||||||||
| Total | $ | 9,948,076 | 100.0 | % | 4.88 | % | 6.2 | |||||||||
| ||
| (1) | Net of the effect of any derivative instruments. Weighted average rates are for the year ended December 31, |
2010
(Amounts in thousands)
Year | Fixed Rate (1) | Floating Rate (1) | Total | % of Total | Weighted Average Rates on Fixed Rate Debt (1) | Weighted Average Rates on Total Debt (1) | ||||||||||||
2009 (2) | $ | 350,974 | $ | 512,424 | $ | 863,398 | 8.2 | % | 6.79 | % | 4.62 | % | ||||||
2010 (3) | 294,968 | 658,515 | 953,483 | 9.1 | % | 7.01 | % | 4.42 | % | |||||||||
2011 (2) (4) | 1,451,164 | 63,178 | 1,514,342 | 14.4 | % | 5.71 | % | 5.57 | % | |||||||||
2012 | 908,196 | 3,658 | 911,854 | 8.7 | % | 6.08 | % | 6.08 | % | |||||||||
2013 | 566,333 | - | 566,333 | 5.4 | % | 5.93 | % | 5.93 | % | |||||||||
2014 | 517,470 | - | 517,470 | 4.9 | % | 5.28 | % | 5.28 | % | |||||||||
2015 | 355,620 | - | 355,620 | 3.4 | % | 6.41 | % | 6.41 | % | |||||||||
2016 | 1,089,317 | - | 1,089,317 | 10.4 | % | 5.32 | % | 5.32 | % | |||||||||
2017 | 1,346,649 | 456 | 1,347,105 | 12.8 | % | 5.87 | % | 5.87 | % | |||||||||
2018 | 335,496 | 44,677 | 380,173 | 3.6 | % | 5.96 | % | 5.63 | % | |||||||||
2019+ | 1,366,627 | 635,524 | 2,002,151 | 19.1 | % | 5.85 | % | 4.98 | % | |||||||||
Total | $ | 8,582,814 | $ | 1,918,432 | $ | 10,501,246 | 100.0 | % | 5.86 | % | 5.37 | % | ||||||
| Weighted Average | Weighted Average | |||||||||||||||||||||||
| Fixed | Floating | Rates on Fixed | Rates on | |||||||||||||||||||||
| Year | Rate (1) | Rate (1) | Total | % of Total | Rate Debt (1) | Total Debt (1) | ||||||||||||||||||
| 2011 | $ | 906,266 | (2) | $ | 759,725 | (3) | $ | 1,665,991 | 16.8 | % | 5.28 | % | 3.49 | % | ||||||||||
| 2012 | 778,181 | 38,128 | 816,309 | 8.2 | % | 5.65 | % | 5.57 | % | |||||||||||||||
| 2013 | 269,159 | 309,828 | 578,987 | 5.8 | % | 6.72 | % | 4.89 | % | |||||||||||||||
| 2014 | 562,583 | 22,034 | 584,617 | 5.9 | % | 5.31 | % | 5.24 | % | |||||||||||||||
| 2015 | 357,713 | — | 357,713 | 3.6 | % | 6.40 | % | 6.40 | % | |||||||||||||||
| 2016 | 1,167,662 | — | 1,167,662 | 11.7 | % | 5.33 | % | 5.33 | % | |||||||||||||||
| 2017 | 1,355,830 | 456 | 1,356,286 | 13.6 | % | 5.87 | % | 5.87 | % | |||||||||||||||
| 2018 | 80,763 | 44,677 | 125,440 | 1.3 | % | 5.72 | % | 4.28 | % | |||||||||||||||
| 2019 | 801,754 | 20,766 | 822,520 | 8.3 | % | 5.49 | % | 5.36 | % | |||||||||||||||
| 2020 | 1,671,836 | 809 | 1,672,645 | 16.8 | % | 5.50 | % | 5.50 | % | |||||||||||||||
| 2021+ | 255,506 | 544,400 | 799,906 | 8.0 | % | 6.62 | % | 2.67 | % | |||||||||||||||
| Total | $ | 8,207,253 | $ | 1,740,823 | $ | 9,948,076 | 100.0 | % | 5.63 | % | 4.93 | % | ||||||||||||
| (1) |
| Net of the effect of any derivative instruments. Weighted average rates are as of December 31, |
(2) |
|
| Includes |
|
| |
| (3) | Includes the Operating Partnership’s $500.0 million term loan facility, which originally matured on October 5, 2010. Effective April 12, 2010, the Operating Partnership exercised the first of its two one-year extension options. As a result, the maturity date is now October 5, 2011 and there is one remaining one-year extension option exercisable by the Operating Partnership. |
33
2010
(Amounts in thousands)
| Coupon Rate | Due Date | Face Amount | Unamortized Premium/ (Discount) | Net Balance | |||||||||||||
Fixed Rate Notes: | |||||||||||||||||
| 4.750% | 06/15/09 | (1) | $ | 227,400 | $ | (98 | ) | $ | 227,302 | ||||||||
| 6.950% | 03/02/11 | (2) | 300,000 | 2,047 | 302,047 | ||||||||||||
| 6.625% | 03/15/12 | 400,000 | (942 | ) | 399,058 | ||||||||||||
| 5.500% | 10/01/12 | 350,000 | (1,295 | ) | 348,705 | ||||||||||||
| 5.200% | 04/01/13 | 400,000 | (503 | ) | 399,497 | ||||||||||||
| 5.250% | 09/15/14 | 500,000 | (351 | ) | 499,649 | ||||||||||||
| 6.584% | 04/13/15 | 300,000 | (700 | ) | 299,300 | ||||||||||||
| 5.125% | 03/15/16 | 500,000 | (386 | ) | 499,614 | ||||||||||||
| 5.375% | 08/01/16 | 400,000 | (1,407 | ) | 398,593 | ||||||||||||
| 5.750% | 06/15/17 | 650,000 | (4,323 | ) | 645,677 | ||||||||||||
| 7.125% | 10/15/17 | 150,000 | (570 | ) | 149,430 | ||||||||||||
| 7.570% | 08/15/26 | 140,000 | - | 140,000 | |||||||||||||
| 3.850% | 08/15/26 | (3) | 548,557 | (6,057 | ) | 542,500 | |||||||||||
Floating Rate Adjustments | (1) | (150,000 | ) | - | (150,000 | ) | |||||||||||
| 4,715,957 | (14,585 | ) | 4,701,372 | ||||||||||||||
Fixed Rate Tax Exempt Notes: | |||||||||||||||||
| 5.200% | 06/15/29 | (4) | 75,790 | - | 75,790 | ||||||||||||
Floating Rate Tax Exempt Notes: | |||||||||||||||||
| 7-Day SIFMA | 12/15/28 | (4) | 35,600 | - | 35,600 | ||||||||||||
Floating Rate Notes: | |||||||||||||||||
| 06/15/09 | (1) | 150,000 | - | 150,000 | |||||||||||||
FAS 133 Adjustments – net | (1) | 1,554 | - | 1,554 | |||||||||||||
Term Loan Facility | LIBOR+0.50% | 10/05/10 | (4) (5) | 500,000 | - | 500,000 | |||||||||||
| 651,554 | - | 651,554 | |||||||||||||||
Revolving Credit Facility: | LIBOR+0.50% | 02/28/12 | (6) | - | - | - | |||||||||||
Total Unsecured Debt | $ | 5,478,901 | $ | (14,585 | ) | $ | 5,464,316 | ||||||||||
| Unamortized | ||||||||||||||||||||
| Coupon | Due | Face | Premium/ | Net | ||||||||||||||||
| Rate | Date | Amount | (Discount) | Balance | ||||||||||||||||
Fixed Rate Notes: | ||||||||||||||||||||
| 6.950 | % | 03/02/11 | $ | 93,096 | $ | 205 | $ | 93,301 | ||||||||||||
| 6.625 | % | 03/15/12 | 253,858 | (229 | ) | 253,629 | ||||||||||||||
| 5.500 | % | 10/01/12 | 222,133 | (383 | ) | 221,750 | ||||||||||||||
| 5.200 | % | 04/01/13 | (1) | 400,000 | (266 | ) | 399,734 | |||||||||||||
| Fair Value Derivative Adjustments | (1 | ) | (300,000 | ) | — | (300,000 | ) | |||||||||||||
| 5.250 | % | 09/15/14 | 500,000 | (228 | ) | 499,772 | ||||||||||||||
| 6.584 | % | 04/13/15 | 300,000 | (469 | ) | 299,531 | ||||||||||||||
| 5.125 | % | 03/15/16 | 500,000 | (278 | ) | 499,722 | ||||||||||||||
| 5.375 | % | 08/01/16 | 400,000 | (1,036 | ) | 398,964 | ||||||||||||||
| 5.750 | % | 06/15/17 | 650,000 | (3,306 | ) | 646,694 | ||||||||||||||
| 7.125 | % | 10/15/17 | 150,000 | (441 | ) | 149,559 | ||||||||||||||
| 4.750 | % | 07/15/20 | 600,000 | (4,349 | ) | 595,651 | ||||||||||||||
| 7.570 | % | 08/15/26 | 140,000 | — | 140,000 | |||||||||||||||
| 3.850 | % | 08/15/26 | (2) | 482,545 | (4,992 | ) | 477,553 | |||||||||||||
| 4,391,632 | (15,772 | ) | 4,375,860 | |||||||||||||||||
Floating Rate Notes: | ||||||||||||||||||||
| 04/01/13 | (1) | 300,000 | — | 300,000 | ||||||||||||||||
| Fair Value Derivative Adjustments | (1) | 9,320 | — | 9,320 | ||||||||||||||||
| Term Loan Facility | LIBOR+0.50% | 10/05/11 | (3) (4) | 500,000 | — | 500,000 | ||||||||||||||
| 809,320 | — | 809,320 | ||||||||||||||||||
Revolving Credit Facility: | LIBOR+0.50% | 02/28/12 | (3) (5) | — | — | — | ||||||||||||||
Total Unsecured Debt | $ | 5,200,952 | $ | (15,772 | ) | $ | 5,185,180 | |||||||||||||
| (1) |
|
|
| $ |
(2) |
|
| Convertible notes mature on August 15, 2026. The notes are callable by the Operating Partnership on or after August 18, 2011. The notes are putable by the holders on August 18, 2011, August 15, 2016 and August 15, 2021. |
|
| Facilities are private. All other unsecured debt is public. |
| Represents the Operating Partnership’s $500.0 million term loan facility, which |
| As of December 31, |
As of February 26, 2009, an
21, 2011October 14, 2013 and does not contain a maximum issuance amount). AsHowever, as of February 26, 2009, an unlimited amount of equity securities remains available for issuance by EQR16, 2011, issuances under a registration statement the SEC declared effective in December 2008 (under SEC regulations enacted in 2005, the registration statement automatically expires on December 15, 2011 and does not contain a maximum issuance amount).ATM share offering program are limited to 10.0 million additional shares. Per the terms of ERPOP’s partnership agreement, EQR contributes the net proceeds of all equity offerings to the capital of the Operating Partnership in exchange for additional OP Units (on a one-for-one Common Share per OP Unit basis) or preference units (on a one-for-one preferred share per preference unit basis).
34
2010
(Amounts in thousands except for unit and per unit amounts)
Secured Debt | $ | 5,036,930 | 48.0 | % | ||||||||
Unsecured Debt | 5,464,316 | 52.0 | % | |||||||||
Total Debt | 10,501,246 | 100.0 | % | 54.3 | % | |||||||
OP Units | 289,466,537 | |||||||||||
OP Unit Equivalents (see below) | 406,167 | |||||||||||
Total outstanding at quarter-end | 289,872,704 | |||||||||||
EQR Common Share Price at December 31, 2008 | $ | 29.82 | ||||||||||
| 8,644,004 | 97.7 | % | ||||||||||
Perpetual Preference Units (see below) | 200,000 | 2.3 | % | |||||||||
Total Equity | 8,844,004 | 100.0 | % | 45.7 | % | |||||||
Total Market Capitalization | $ | 19,345,250 | 100.0 | % | ||||||||
Convertible
| Secured Debt | $ | 4,762,896 | 47.9 | % | ||||||||||||
| Unsecured Debt | 5,185,180 | 52.1 | % | |||||||||||||
Total Debt | 9,948,076 | 100.0 | % | 38.4 | % | |||||||||||
| Total outstanding Units | 303,809,279 | |||||||||||||||
| EQR Common Share Price at December 31, 2010 | $ | 51.95 | ||||||||||||||
| 15,782,892 | 98.7 | % | ||||||||||||||
| Perpetual Preference Units (see below) | 200,000 | 1.3 | % | |||||||||||||
Total Equity | 15,982,892 | 100.0 | % | 61.6 | % | |||||||||||
Total Market Capitalization | $ | 25,930,968 | 100.0 | % | ||||||||||||
2010
(Amounts in thousands except for unit and per unit amounts)
Series | Redemption Date | Outstanding Units | Liquidation Value | Annual Dividend Per Unit | Annual Dividend Amount | Weighted Average Rate | Conversion Ratio | OP Unit Equivalents | ||||||||||||
Preference Units: | ||||||||||||||||||||
7.00% Series E | 11/1/98 | 329,016 | $ | 8,225 | $ | 1.75 | $ | 576 | 1.1128 | 366,129 | ||||||||||
7.00% Series H | 6/30/98 | 22,459 | 561 | 1.75 | 39 | 1.4480 | 32,521 | |||||||||||||
Junior Preference Units: | ||||||||||||||||||||
8.00% Series B | 7/29/09 | 7,367 | 184 | 2.00 | 15 | 1.020408 | 7,517 | |||||||||||||
Total Convertible Preference Units | 358,842 | $ | 8,970 | $ | 630 | 7.02 | % | 406,167 | ||||||||||||
Perpetual
| Annual | Annual | Weighted | ||||||||||||||||||||||
| Redemption | Outstanding | Liquidation | Dividend | Dividend | Average | |||||||||||||||||||
| Series | Date | Units | Value | Per Unit | Amount | Rate | ||||||||||||||||||
| Preference Units: | ||||||||||||||||||||||||
| 8.29% Series K | 12/10/26 | 1,000,000 | $ | 50,000 | $ | 4.145 | $ | 4,145 | ||||||||||||||||
| 6.48% Series N | 6/19/08 | 600,000 | 150,000 | 16.20 | 9,720 | |||||||||||||||||||
| Total Perpetual Preference Units | 1,600,000 | $ | 200,000 | $ | 13,865 | 6.93 | % | |||||||||||||||||
(Amounts in thousands except for unit$0.8 million and per unit amounts)
Series | Redemption Date | Outstanding Units | Liquidation Value | Annual Dividend Per Unit | Annual Dividend Amount | Weighted Average Rate | ||||||||||
Preference Units: | ||||||||||||||||
8.29% Series K | 12/10/26 | 1,000,000 | $ | 50,000 | $ | 4.145 | $ | 4,145 | ||||||||
6.48% Series N | 6/19/08 | 600,000 | 150,000 | 16.20 | 9,720 | |||||||||||
Total Perpetual Preference Units | 1,600,000 | $ | 200,000 | $ | 13,865 | 6.93 | % | |||||||||
355,539 Units.
credit facility. Under normal operating conditions, the Operating Partnership considers its cash provided by operating activities to be adequate to meet operating requirements and payments of distributions. However, there may be times when the Operating Partnership experiences shortfalls in its coverage of distributions, which may cause the Operating Partnership to consider reducing its distributions and/or using the proceeds from property dispositions or additional financing transactions to make up the difference. Should these shortfalls occur for lengthy periods of time or be material in nature, the Operating Partnership’s financial condition may be adversely affected and it may not be able to maintain its current distribution levels. The Operating Partnership reduced its quarterly OP Unit dividend beginning with the dividend for the third quarter of 2009, from $0.4825 per Unit to $0.3375 per Unit.
35
As However, there can be no assurances that these sources of February 5, 2009,capital will be available to the Operating Partnership in the future on acceptable terms or otherwise.
During the fourth quarter of 2010, Fitch downgraded the Operating Partnership’s credit rating from A- to BBB+ and EQR’s equity rating from BBB+ to BBB-, which does not have an effect on the Operating Partnership’s cost of funds. During the first quarter of 2011, Moody’s raised its outlook for both EQR and the Operating Partnership from negative outlook to stable outlook.
loss and are included in real estate taxes and insurance on the consolidated statements of operations. In addition, the Operating Partnership estimates that its lost revenues approximated $1.6 million during the year ended December 31, 2010 as a result of the high-rise tower being unoccupied following the garage collapse.
2010.
• | Replacements(inside the unit). These include: |
flooring such as carpets, hardwood, vinyl, linoleum or tile;
appliances;
| • | flooring such as carpets, hardwood, vinyl, linoleum or tile; | ||
| • | appliances; | ||
| • | mechanical equipment such as individual furnace/air units, hot water heaters, etc; | ||
| • | furniture and fixtures such as kitchen/bath cabinets, light fixtures, ceiling fans, sinks, tubs, toilets, mirrors, countertops, etc; and | ||
| • | blinds/shades. |
mechanical equipment such as individual furnace/air units, hot water heaters, etc;
furniture and fixtures such as kitchen/bath cabinets, light fixtures, ceiling fans, sinks, tubs, toilets, mirrors, countertops, etc; and
blinds/shades.
All replacements are depreciated over a five-year estimated useful life. We expense as incurred all make-ready maintenance and turnover costs such as cleaning, interior painting of individual apartment units and the repair of any replacement item noted above.
• | Building improvements(outside the unit). These include: |
| • | roof replacement and major repairs; | ||
| • | paving or major resurfacing of parking lots, curbs and sidewalks; | ||
| • | amenities and common areas such as pools, exterior sports and playground equipment, lobbies, |
36
paving or major resurfacing of parking lots, curbs and sidewalks;
| clubhouses, laundry rooms, alarm and security systems and offices; | |||
| • | major building mechanical equipment systems; | ||
| • | interior and exterior structural repair and exterior painting and siding; | ||
| • | major landscaping and grounds improvement; and | ||
| • | vehicles and office and maintenance equipment. |
amenities and common areas such as pools, exterior sports and playground equipment, lobbies, clubhouses, laundry rooms, alarm and security systems and offices;
major building mechanical equipment systems;
interior and exterior structural repair and exterior painting and siding;
major landscaping and grounds improvement; and
vehicles and office and maintenance equipment.
All building improvements are depreciated over a five to ten-year estimated useful life. We capitalize building improvements and upgrades only if the item: (i) exceeds $2,500 (selected projects must exceed $10,000); (ii)
extends the useful life of the asset; and (iii) improves the value of the asset.
Capitalized Improvements
For the Year Ended December 31, 2008
| Total Units (1) | Replacements | Avg. Per Unit | Building Improvements | Avg. Per Unit | Total | Avg. Per Unit | ||||||||||||||
Established Properties (2) | 105,607 | $ | 38,003 | $ | 360 | $ | 53,195 | $ | 504 | $ | 91,198 | $ | 864 | |||||||
New Acquisition Properties (3) | 20,665 | 5,409 | 285 | 18,243 | 961 | 23,652 | 1,246 | |||||||||||||
Other (4) | 6,487 | 43,497 | 11,491 | 54,988 | ||||||||||||||||
Total | 132,759 | $ | 86,909 | $ | 82,929 | $ | 169,838 | |||||||||||||
| Total | Avg. Per | Avg. Per | Avg. Per | |||||||||||||||||||||||||
| Apartment | Apartment | Building | Apartment | Apartment | ||||||||||||||||||||||||
| Units (1) | Replacements (2) | Unit | Improvements | Unit | Total | Unit | ||||||||||||||||||||||
| Same Store Properties (3) | 112,042 | $ | 70,620 | $ | 630 | $ | 54,118 | $ | 483 | $ | 124,738 | $ | 1,113 | |||||||||||||||
| Non-Same Store Properties (4) | 12,824 | 4,180 | 457 | 5,547 | 607 | 9,727 | 1,064 | |||||||||||||||||||||
| Other (5) | — | 1,509 | 2,234 | 3,743 | ||||||||||||||||||||||||
| Total | 124,866 | $ | 76,309 | $ | 61,899 | $ | 138,208 | |||||||||||||||||||||
| (1) |
| Total |
(2) |
| Replacements — Includes new expenditures inside the apartment units such as appliances, mechanical equipment, fixtures and flooring, including carpeting. Replacements for same store properties also include $31.7 million spent in 2010 on apartment unit renovations/rehabs (primarily kitchens and baths) on 4,331 apartment units (equating to about $7,300 per apartment unit rehabbed) designed to reposition these assets for higher rental levels in their respective markets. |
| (3) | Same Store Properties |
|
| Non-Same Store Properties |
| Other |
Capitalized Improvements
For the Year Ended December 31, 2007
| Total Units (1) | Replacements | Avg. Per Unit | Building Improvements | Avg. Per Unit | Total | Avg. Per Unit | ||||||||||||||
Established Properties (2) | 103,560 | $ | 37,695 | $ | 364 | $ | 77,109 | $ | 745 | $ | 114,804 | $ | 1,109 | |||||||
New Acquisition Properties (3) | 27,696 | 9,433 | 371 | 66,182 | 2,605 | 75,615 | 2,976 | |||||||||||||
Other (4) | 7,388 | 16,398 | 45,858 | 62,256 | ||||||||||||||||
Total | 138,644 | $ | 63,526 | $ | 189,149 | $ | 252,675 | |||||||||||||
| Total | Avg. Per | Avg. Per | Avg. Per | |||||||||||||||||||||||||
| Apartment | Apartment | Building | Apartment | Apartment | ||||||||||||||||||||||||
| Units (1) | Replacements (2) | Unit | Improvements | Unit | Total | Unit | ||||||||||||||||||||||
| Same Store Properties (3) | 113,598 | $ | 69,808 | $ | 614 | $ | 44,611 | $ | 393 | $ | 114,419 | $ | 1,007 | |||||||||||||||
| Non-Same Store Properties (4) | 10,728 | 2,361 | 240 | 3,675 | 374 | 6,036 | 614 | |||||||||||||||||||||
| Other (5) | — | 2,130 | 1,352 | 3,482 | ||||||||||||||||||||||||
| Total | 124,326 | $ | 74,299 | $ | 49,638 | $ | 123,937 | |||||||||||||||||||||
| (1) |
| Total |
(2) |
| Replacements — For same store properties includes $28.0 million spent on various assets related to unit renovations/rehabs (primarily kitchens and baths) designed to reposition these assets for higher rental levels in their respective markets. |
| (3) | Same Store Properties |
|
| Non-Same Store Properties |
| Other |
The Operating Partnership incurred less in capitalized improvements per unit and overall in 2008 primarily due to enhanced efforts to limit the scope of projects and greater cost controls on vendors.37
2010.
2010.
As of December 31, 2008,2010, the Operating Partnership had sold its interest in these unconsolidated ventures with the exception of eight properties consisting of 2,061 apartment units which were acquired by the Operating Partnership. All of the related debt encumbering these ventures was extinguished.
38
Payments Due by Year (in thousands)
Contractual Obligations | 2009 | 2010 | 2011 | 2012 | 2013 | Thereafter | Total | ||||||||||||||
Debt: | |||||||||||||||||||||
Principal (a) | $ | 863,398 | $ | 953,483 | $ | 1,514,342 | $ | 911,854 | $ | 566,333 | $ | 5,691,836 | $ | 10,501,246 | |||||||
Interest (b) | 539,674 | 501,815 | 429,789 | 364,376 | 318,714 | 1,645,206 | 3,799,574 | ||||||||||||||
Operating Leases: | |||||||||||||||||||||
Minimum Rent Payments (c) | 6,047 | 5,530 | 3,582 | 1,273 | 1,101 | 58,553 | 76,086 | ||||||||||||||
Other Long-Term Liabilities: | |||||||||||||||||||||
Deferred Compensation (d) | 1,456 | 1,457 | 2,062 | 2,062 | 1,464 | 11,376 | 19,877 | ||||||||||||||
Total | $ | 1,410,575 | $ | 1,462,285 | $ | 1,949,775 | $ | 1,279,565 | $ | 887,612 | $ | 7,406,971 | $ | 14,396,783 | |||||||
| Payments Due by Year (in thousands) | ||||||||||||||||||||||||||||
| Contractual Obligations | 2011 | 2012 | 2013 | 2014 | 2015 | Thereafter | Total | |||||||||||||||||||||
| Debt: | ||||||||||||||||||||||||||||
| Principal (a) | $ | 1,665,991 | $ | 816,309 | $ | 578,987 | $ | 584,617 | $ | 357,713 | $ | 5,944,459 | $ | 9,948,076 | ||||||||||||||
| Interest (b) | 460,045 | 407,793 | 367,642 | 344,599 | 309,043 | 1,016,041 | 2,905,163 | |||||||||||||||||||||
| Operating Leases: | ||||||||||||||||||||||||||||
| Minimum Rent Payments (c) | 5,478 | 4,285 | 4,431 | 4,736 | 4,729 | 320,928 | 344,587 | |||||||||||||||||||||
| Other Long-Term Liabilities: | ||||||||||||||||||||||||||||
| Deferred Compensation (d) | 1,457 | 1,770 | 1,485 | 1,677 | 1,677 | 9,182 | 17,248 | |||||||||||||||||||||
| Total | $ | 2,132,971 | $ | 1,230,157 | $ | 952,545 | $ | 935,629 | $ | 673,162 | $ | 7,290,610 | $ | 13,215,074 | ||||||||||||||
| ||
| (a) | Amounts include aggregate principal payments |
| (b) | Amounts include interest expected to be incurred on the Operating Partnership’s secured and unsecured debt based on obligations outstanding at December 31, |
| (c) | Minimum basic rent due for various office space the Operating Partnership leases and fixed base rent due on ground leases for |
| (d) | Estimated payments to EQR’s Chairman, Vice Chairman and two former CEO’s |
2009. 3920082010 and are consistent with the year ended December 31, 2007.sixfive significant accounting policies as critical accounting policies. These critical accounting policies are those that have the most impact on the reporting of our financial condition and those requiring significant judgments and estimates. With respect to these critical accounting policies, management believes that the application of judgments and estimates is consistently applied and produces financial information that fairly presents the results of operations for all periods presented. The sixfive critical accounting policies are: Including Goodwilland goodwill, for indicators of permanent impairment. The judgments regarding the existence of impairment indicators are based on factors such as operational performance, market conditions and legal and environmental concerns, as well as the Operating Partnership’s ability to hold and its intent with regard to each asset. Future events could occur which would cause the Operating Partnership to conclude that impairment indicators exist and an impairment loss is warranted.
time on the supervision of major capital and/or renovation projects. These costs are reflected on the balance sheet as an increase to depreciable property.
The Operating Partnership follows the guidance in SFAS No. 67,Accounting for Costs and Initial Rental Operations of Real Estate Projects, for
The Operating Partnership follows the guidance under SFAS No. 157 when valuing its financial instruments.
Revenue Recognition
Rental income attributable to residential leases is recorded on a straight-line basis, which is not materially different than if it were recorded when due from residents and recognized monthly as it is earned. Leases entered into between a resident and a property for the rental of an apartment unit are generally year-to-year, renewable upon consent of both parties on an annual or monthly basis. Fee and asset management revenue and interest income are recorded on an accrual basis.
Share-Based Compensation
The Company accounts for its share-based compensation in accordance with SFAS No. 123(R),Share-Based Payment, effective January 1, 2006, which results in compensation expense being recorded based on the fair value of the share compensation granted.
Any EQR Common Shares issued pursuant to EQR’s incentive equity compensation and employee share purchase plans will result in the Operating Partnership issuing OP Units to EQR on a one-for-one basis, with the Operating Partnership receiving the net cash proceeds of such issuances.
The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. This model is only one method of valuing options and the Company’s use of this model should not be interpreted as an endorsement of its accuracy. Because the Company’s share options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its share options and the actual value of the options may be significantly different.
and Normalized Funds From Operations
2008.
40
and Normalized Funds From Operations
(Amounts in thousands)
| Year Ended December 31, | ||||||||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
Net income | $ | 447,035 | $ | 1,055,228 | $ | 1,148,104 | $ | 932,047 | $ | 524,164 | ||||||||||
Adjustments: | ||||||||||||||||||||
Depreciation | 591,162 | 562,290 | 482,683 | 365,329 | 309,180 | |||||||||||||||
Depreciation – Non-real estate additions | (8,269 | ) | (8,279 | ) | (7,840 | ) | (5,541 | ) | (5,303 | ) | ||||||||||
Depreciation – Partially Owned and Unconsolidated | 4,157 | 4,379 | 4,338 | 2,487 | 1,903 | |||||||||||||||
Net gain on sales of unconsolidated entities | (2,876 | ) | (2,629 | ) | (370 | ) | (1,330 | ) | (4,593 | ) | ||||||||||
Discontinued operations: | ||||||||||||||||||||
Depreciation | 11,746 | 54,124 | 109,834 | 163,418 | 187,132 | |||||||||||||||
Net (gain) on sales of discontinued operations | (392,857 | ) | (933,013 | ) | (1,025,803 | ) | (706,405 | ) | (319,071 | ) | ||||||||||
Net incremental (loss) gain on sales of condominium units | (3,932 | ) | 20,771 | 48,961 | 100,361 | 32,682 | ||||||||||||||
FFO (1) (2) | 646,166 | 752,871 | 759,907 | 850,366 | 726,094 | |||||||||||||||
Preferred distributions | (14,522 | ) | (23,233 | ) | (39,115 | ) | (57,248 | ) | (73,236 | ) | ||||||||||
Premium on redemption of preference units/interests | - | (6,154 | ) | (4,649 | ) | (8,493 | ) | (1,117 | ) | |||||||||||
FFO available to OP Units (1) (2) | $ | 631,644 | $ | 723,484 | $ | 716,143 | $ | 784,625 | $ | 651,741 | ||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
| Net income | $ | 295,983 | $ | 382,029 | $ | 436,413 | $ | 1,047,356 | $ | 1,147,617 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Net (income) loss attributable to Noncontrolling Interests — Partially Owned Properties | 726 | 558 | (2,650 | ) | (2,200 | ) | (3,132 | ) | ||||||||||||
| Depreciation | 656,633 | 559,271 | 536,283 | 509,358 | 429,737 | |||||||||||||||
| Depreciation — Non-real estate additions | (6,788 | ) | (7,355 | ) | (8,269 | ) | (8,279 | ) | (7,840 | ) | ||||||||||
| Depreciation — Partially Owned and Unconsolidated Properties | (1,619 | ) | 759 | 4,157 | 4,379 | 4,338 | ||||||||||||||
| Net (gain) on sales of unconsolidated entities | (28,101 | ) | (10,689 | ) | (2,876 | ) | (2,629 | ) | (370 | ) | ||||||||||
| Discontinued operations: | ||||||||||||||||||||
| Depreciation | 16,770 | 41,104 | 66,625 | 107,056 | 162,780 | |||||||||||||||
| Net (gain) on sales of discontinued operations | (297,956 | ) | (335,299 | ) | (392,857 | ) | (933,013 | ) | (1,025,803 | ) | ||||||||||
| Net incremental gain (loss) on sales of condominium units | 1,506 | (385 | ) | (3,932 | ) | 20,771 | 48,961 | |||||||||||||
| FFO (1) (3) | 637,154 | 629,993 | 632,894 | 742,799 | 756,288 | |||||||||||||||
| Adjustments: | ||||||||||||||||||||
| Asset impairment and valuation allowances | 45,380 | 11,124 | 116,418 | — | 30,000 | |||||||||||||||
| Property acquisition costs and write-off of pursuit costs (other expenses) | 11,928 | 6,488 | 5,760 | 1,830 | 4,661 | |||||||||||||||
| Debt extinguishment (gains) losses, including prepayment penalties, preference unit redemptions and non-cash convertible debt discounts | 8,594 | 34,333 | (2,784 | ) | 24,004 | 21,563 | ||||||||||||||
| (Gains) losses on sales of non-operating assets, net of income and other tax expense (benefit) | (80 | ) | (5,737 | ) | (979 | ) | (34,450 | ) | (48,592 | ) | ||||||||||
| Other miscellaneous non-comparable items | (6,186 | ) | (171 | ) | (1,725 | ) | (5,767 | ) | (20,880 | ) | ||||||||||
| Normalized FFO (2) (3) | $ | 696,790 | $ | 676,030 | $ | 749,584 | $ | 728,416 | $ | 743,040 | ||||||||||
| FFO (1) (3) | $ | 637,154 | $ | 629,993 | $ | 632,894 | $ | 742,799 | $ | 756,288 | ||||||||||
| Preferred distributions | (14,368 | ) | (14,488 | ) | (14,522 | ) | (23,233 | ) | (39,115 | ) | ||||||||||
| Premium on redemption of preference units | — | — | — | (6,154 | ) | (4,649 | ) | |||||||||||||
| FFO available to Units (1) (3) (4) | $ | 622,786 | $ | 615,505 | $ | 618,372 | $ | 713,412 | $ | 712,524 | ||||||||||
| Normalized FFO (2) (3) | $ | 696,790 | $ | 676,030 | $ | 749,584 | $ | 728,416 | $ | 743,040 | ||||||||||
| Preferred distributions | (14,368 | ) | (14,488 | ) | (14,522 | ) | (23,233 | ) | (39,115 | ) | ||||||||||
| Premium on redemption of preference units | — | — | — | (6,154 | ) | (4,649 | ) | |||||||||||||
| Normalized FFO available to Units (2) (3) (4) | $ | 682,422 | $ | 661,542 | $ | 735,062 | $ | 699,029 | $ | 699,276 | ||||||||||
| (1) | The National Association of Real Estate Investment Trusts (“NAREIT”) defines funds from operations (“FFO”) (April 2002 White Paper) as net income (computed in accordance with accounting principles generally accepted in the United States (“GAAP”)), excluding gains (or losses) from sales of depreciable property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis. The April 2002 White Paper states that gain or loss on sales of property is excluded from FFO for previously depreciated operating properties only. Once the Operating Partnership commences the conversion of apartment units to condominiums, it simultaneously discontinues depreciation of such property. | |
| (2) | Normalized funds from operations (“Normalized FFO”) begins with FFO |
| • | the impact of any expenses relating to | ||
| • | property acquisition and other transaction costs related to mergers and acquisitions and pursuit cost write-offs (other expenses); | ||
| • | gains and losses from early debt extinguishment, including prepayment penalties, preference unit redemptions and the cost related to the implied option value of non-cash convertible debt discounts; | ||
| • | gains and losses on | ||
| • | other miscellaneous non-comparable items. |
41
| ||
| (3) | The Operating Partnership believes that FFO and FFO available to | |
| (4) | FFO available to Units and Normalized FFO available to Units are calculated on a basis consistent with net income available to Units and reflects adjustments to net income for preferred distributions and premiums on redemption of preference units in accordance with accounting principles generally accepted in the United States. |
2010. 42as it did at December 31, 2008, substantial cash balances, this will tend to partially counterbalance any increase or decrease in interest rates.limitmanage market risk. Interest rate protection agreements are used to convert floating rate debt to a fixed rate basis or vice versa.versa as well as to partially lock in rates on future debt issuances. Derivatives are used for hedging purposes rather than speculation. The Operating Partnership does not enter into financial instruments for trading purposes. See also Note 11 to the Notes to Consolidated Financial Statements for additional discussion of derivative instruments.$5.0$4.7 billion and $4.7$5.5 billion, respectively, at December 31, 2008.2008,2010, the Operating Partnership had total outstanding floating rate debt of approximately $1.9$1.7 billion, or 18.3%17.5% of total debt, net of the effects of any derivative instruments. If market rates of interest on all of the floating rate debt permanently increased by 3414 basis points (a 10% increase from the Operating Partnership’s existing weighted average interest rates), the increase in interest expense on the floating rate debt would decrease future earnings and cash flows by approximately $6.5$2.4 million. If market rates of interest on all of the floating rate debt permanently decreased by 3414 basis points (a 10% decrease from the Operating Partnership’s existing weighted average interest rates), the decrease in interest expense on the floating rate debt would increase future earnings and cash flows by approximately $6.5$2.4 million.2008,2010, the Operating Partnership had total outstanding fixed rate debt of approximately $8.6$8.2 billion, or 81.7%82.5% of total debt, net of the effects of any derivative instruments. If market rates of interest permanently increased by 5857 basis points (a 10% increase from the Operating Partnership’s existing weighted average interest rates), the estimated fair value of the Operating Partnership’s fixed rate debt would be approximately $7.8$7.5 billion. If market rates of interest permanently decreased by 5857 basis points (a 10% decrease from the Operating Partnership’s existing weighted
43
44
None.
45definitive proxy statement,Proxy Statement, which EQR anticipates will be filedintends to file no later than April 16, 2009.120 days after the end of its fiscal year ended December 31, 2010. EQR is the general partner of and owns an approximate 94.2%95.5% ownership interest in ERPOP.
(a) | The following documents are filed as part of this Report: |
(1) | Financial Statements: See Index to Consolidated Financial Statements and Schedule on page F-1 of this Form 10-K. |
(2) | Exhibits: See the Exhibit Index. |
(3) | Financial Statement Schedules: See Index to Consolidated Financial Statements and Schedule on page F-1 of this Form 10-K. |
46
SIGNATURES
| ERP OPERATING LIMITED PARTNERSHIP | ||||||
| EQUITY RESIDENTIAL | |||||
| ||||||
By: | /s/ David J. Neithercut | |||||
David J. Neithercut, | ||||||
President and Chief Executive Officer | ||||||
| Date: February 24, 2011 | ||||||
| ||||||
ERP OPERATING LIMITED PARTNERSHIP
|
|
| ||
| Name | Title | Date | ||
| /s/ David J. Neithercut
| President, Chief Executive Officer and Trustee | February | ||
David J. Neithercut | ||||
/s/ Mark J. Parrell
| Executive Vice President and Chief Financial Officer | February | ||
| Mark J. Parrell | ||||
/s/ Ian S. Kaufman
|
| February | ||
| Ian S. Kaufman | ||||
| /s/ John W. Alexander | Trustee | February 24, 2011 | ||
| John W. Alexander |
|
| ||
/s/ Charles L. Atwood | Trustee | February 24, 2011 | ||
| Charles L. Atwood |
|
| ||
|
|
| ||
/s/
| Trustee | February | ||
Linda Walker Bynoe | ||||
/s/ John E. Neal | Trustee | February 24, 2011 | ||
| John E. Neal |
|
| ||
|
|
| ||
| /s/ Mark S. Shapiro | Trustee | February 24, 2011 | ||
| Mark S. Shapiro | ||||
| /s/ B. Joseph White | Trustee | February 24, 2011 | ||
| B. Joseph White |
|
| ||
/s/ Gerald A. Spector
| Vice Chairman of the Board of Trustees | February | ||
Gerald A. Spector | ||||
/s/ Samuel Zell
| Chairman of the Board of Trustees | February | ||
| Samuel Zell | ||||
| PAGE | ||
| ||
| F-2 | ||
| F-3 | ||
| F-4 | ||
| F-5 to F-6 | ||
| F-7 to F-9 | ||
| F-10 to F-11 | ||
| F-12 to | ||
| ||
| S-1 to S-11 | ||
ERP Operating Limited Partnership
| /s/ ERNST & YOUNG LLP | ||||
| ERNST & YOUNG LLP | ||||
F-2
February 20, 2009
F-3
ON INTERNAL CONTROL OVER FINANCIAL REPORTING
ERP Operating Limited Partnership2008,2010, based on criteria established in Internal Control –— Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the “COSO Criteria”). ERP Operating Limited Partnership’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the effectiveness of the Operating Partnership’s internal control over financial reporting based on our audit.2008,2010, based on the COSO Criteria.20082010 and 20072009 and the related consolidated statements of operations, changes in partners’ capital and cash flows for each of the three years in the period ended December 31, 20082010 of ERP Operating Limited Partnership and our report dated February 20, 2009,24, 2011, expressed an unqualified opinion thereon./s/ ERNST & YOUNG LLP ERNST & YOUNG LLP
February 24, 2011
February 20, 2009
ASSETS Investment in real estate Land Depreciable property Projects under development Land held for development Investment in real estate Accumulated depreciation Investment in real estate, net Cash and cash equivalents Investments in unconsolidated entities Deposits – restricted Escrow deposits – mortgage Deferred financing costs, net Other assets Total assets LIABILITIES AND PARTNERS’ CAPITAL Liabilities: Mortgage notes payable Notes, net Lines of credit Accounts payable and accrued expenses Accrued interest payable Other liabilities Security deposits Distributions payable Total liabilities Commitments and contingencies Minority Interests – Partially Owned Properties Partners’ capital: Preference Units Preference Interests and Junior Preference Units General Partner Limited Partners Accumulated other comprehensive loss Total partners’ capital Total liabilities and partners’ capital F-4 December 31,
2008 December 31,
2007 $ 3,671,299 $ 3,607,305 13,908,594 13,556,681 855,473 828,530 254,873 340,834 18,690,239 18,333,350 (3,561,300 ) (3,170,125 ) 15,128,939 15,163,225 890,794 50,831 5,795 3,547 152,372 253,276 19,729 20,174 53,817 56,271 283,664 142,453 $ 16,535,110 $ 15,689,777 $ 5,036,930 $ 3,605,971 5,464,316 5,763,762 - 139,000 108,463 109,385 113,846 124,717 289,562 322,975 64,355 62,159 141,843 141,244 11,219,315 10,269,213 25,520 26,236 208,786 209,662 184 184 4,824,307 4,868,738 292,797 331,626 (35,799 ) (15,882 ) 5,290,275 5,394,328 $ 16,535,110 $ 15,689,777 December 31, December 31, 2010 2009 Investment in real estate Land $ 4,110,275 $ 3,650,324 Depreciable property 15,226,512 13,893,521 Projects under development 130,337 668,979 Land held for development 235,247 252,320 Investment in real estate 19,702,371 18,465,144 Accumulated depreciation (4,337,357 ) (3,877,564 ) Investment in real estate, net 15,365,014 14,587,580 Cash and cash equivalents 431,408 193,288 Investments in unconsolidated entities 3,167 6,995 Deposits — restricted 180,987 352,008 Escrow deposits — mortgage 12,593 17,292 Deferred financing costs, net 42,033 46,396 Other assets 148,992 213,956 $ 16,184,194 $ 15,417,515 Liabilities: Mortgage notes payable $ 4,762,896 $ 4,783,446 Notes, net 5,185,180 4,609,124 Lines of credit — — Accounts payable and accrued expenses 39,452 58,537 Accrued interest payable 98,631 101,849 Other liabilities 304,202 272,236 Security deposits 60,812 59,264 Distributions payable 140,905 100,266 10,592,078 9,984,722 383,540 258,280 Capital: Partners’ capital: Preference Units 200,000 208,773 General Partner 4,948,004 4,833,885 Limited Partners 110,399 116,120 Accumulated other comprehensive (loss) income (57,818 ) 4,681 Total partners’ capital 5,200,585 5,163,459 Noncontrolling Interests — Partially Owned Properties 7,991 11,054 5,208,576 5,174,513 $ 16,184,194 $ 15,417,515
| Year Ended December 31, | ||||||||||||
| 2008 | 2007 | 2006 | ||||||||||
REVENUES | ||||||||||||
Rental income | $ | 2,092,489 | $ | 1,937,874 | $ | 1,693,440 | ||||||
Fee and asset management | 10,715 | 9,183 | 9,101 | |||||||||
Total revenues | 2,103,204 | 1,947,057 | 1,702,541 | |||||||||
EXPENSES | ||||||||||||
Property and maintenance | 542,371 | 505,899 | 444,290 | |||||||||
Real estate taxes and insurance | 217,461 | 195,359 | 160,299 | |||||||||
Property management | 77,063 | 87,476 | 96,178 | |||||||||
Fee and asset management | 7,981 | 8,412 | 8,934 | |||||||||
Depreciation | 591,162 | 562,290 | 482,683 | |||||||||
General and administrative | 44,951 | 46,767 | 44,194 | |||||||||
Impairment | 122,103 | 1,726 | 34,002 | |||||||||
Total expenses | 1,603,092 | 1,407,929 | 1,270,580 | |||||||||
Operating income | 500,112 | 539,128 | 431,961 | |||||||||
Interest and other income | 33,540 | 20,144 | 30,880 | |||||||||
Interest: | ||||||||||||
Expense incurred, net | (479,101 | ) | (482,819 | ) | (417,576 | ) | ||||||
Amortization of deferred financing costs | (9,701 | ) | (10,121 | ) | (8,077 | ) | ||||||
Income before income and other taxes, allocation to Minority Interests, | 44,850 | 66,332 | 37,188 | |||||||||
Income and other tax (expense) benefit | (5,286 | ) | (2,520 | ) | (4,346 | ) | ||||||
Allocation to Minority Interests – Partially Owned Properties | (2,650 | ) | (2,200 | ) | (3,132 | ) | ||||||
(Loss) income from investments in unconsolidated entities | (107 | ) | 332 | (631 | ) | |||||||
Net gain on sales of unconsolidated entities | 2,876 | 2,629 | 370 | |||||||||
Net gain on sales of land parcels | 2,976 | 6,360 | 2,792 | |||||||||
Income from continuing operations | 42,659 | 70,933 | 32,241 | |||||||||
Discontinued operations, net | 404,376 | 984,295 | 1,115,863 | |||||||||
Net income | $ | 447,035 | $ | 1,055,228 | $ | 1,148,104 | ||||||
ALLOCATION OF NET INCOME: | ||||||||||||
Preference Units | $ | 14,507 | $ | 22,792 | $ | 37,113 | ||||||
Preference Interests and Junior Preference Units | $ | 15 | $ | 441 | $ | 2,002 | ||||||
Premium on redemption of Preference Units | $ | - | $ | 6,154 | $ | 3,965 | ||||||
Premium on redemption of Preference Interests | $ | - | $ | - | $ | 684 | ||||||
General Partner | $ | 405,585 | $ | 960,676 | $ | 1,031,766 | ||||||
Limited Partners | 26,928 | 65,165 | 72,574 | |||||||||
Net income available to OP Units | $ | 432,513 | $ | 1,025,841 | $ | 1,104,340 | ||||||
Earnings per OP Unit – basic: | ||||||||||||
Income (loss) from continuing operations available to OP Units | $ | 0.10 | $ | 0.14 | $ | (0.04 | ) | |||||
Net income available to OP Units | $ | 1.50 | $ | 3.44 | $ | 3.56 | ||||||
Weighted average OP Units outstanding | 287,631 | 298,392 | 310,452 | |||||||||
Earnings per OP Unit – diluted: | ||||||||||||
Income (loss) from continuing operations available to OP Units | $ | 0.10 | $ | 0.14 | $ | (0.04 | ) | |||||
Net income available to OP Units | $ | 1.49 | $ | 3.39 | $ | 3.56 | ||||||
Weighted average OP Units outstanding | 290,060 | 302,235 | 310,452 | |||||||||
Distributions declared per OP Unit outstanding | $ | 1.93 | $ | 1.87 | $ | 1.79 | ||||||
| Year Ended December 31, | ||||||||||||
| 2010 | 2009 | 2008 | ||||||||||
REVENUES | ||||||||||||
| Rental income | $ | 1,986,043 | $ | 1,846,157 | $ | 1,876,273 | ||||||
| Fee and asset management | 9,476 | 10,346 | 10,715 | |||||||||
| Total revenues | 1,995,519 | 1,856,503 | 1,886,988 | |||||||||
EXPENSES | ||||||||||||
| Property and maintenance | 498,634 | 464,809 | 485,754 | |||||||||
| Real estate taxes and insurance | 226,718 | 206,247 | 194,671 | |||||||||
| Property management | 81,126 | 71,938 | 77,063 | |||||||||
| Fee and asset management | 5,140 | 7,519 | 7,981 | |||||||||
| Depreciation | 656,633 | 559,271 | 536,283 | |||||||||
| General and administrative | 39,887 | 38,994 | 44,951 | |||||||||
| Impairment | 45,380 | 11,124 | 116,418 | |||||||||
| Total expenses | 1,553,518 | 1,359,902 | 1,463,121 | |||||||||
| Operating income | 442,001 | 496,601 | 423,867 | |||||||||
| Interest and other income | 5,469 | 16,585 | 33,337 | |||||||||
| Other expenses | (11,928 | ) | (6,487 | ) | (5,760 | ) | ||||||
| Interest: | ||||||||||||
| Expense incurred, net | (470,654 | ) | (496,272 | ) | (482,317 | ) | ||||||
| Amortization of deferred financing costs | (10,369 | ) | (12,566 | ) | (9,647 | ) | ||||||
| (Loss) before income and other taxes, (loss) from investments in unconsolidated entities, net gain (loss) on sales of unconsolidated entities and land parcels and discontinued operations | (45,481 | ) | (2,139 | ) | (40,520 | ) | ||||||
| Income and other tax (expense) benefit | (334 | ) | (2,804 | ) | (5,279 | ) | ||||||
| (Loss) from investments in unconsolidated entities | (735 | ) | (2,815 | ) | (107 | ) | ||||||
| Net gain on sales of unconsolidated entities | 28,101 | 10,689 | 2,876 | |||||||||
| Net (loss) gain on sales of land parcels | (1,395 | ) | — | 2,976 | ||||||||
| (Loss) income from continuing operations | (19,844 | ) | 2,931 | (40,054 | ) | |||||||
| Discontinued operations, net | 315,827 | 379,098 | 476,467 | |||||||||
| Net income | 295,983 | 382,029 | 436,413 | |||||||||
| Net (income) loss attributable to Noncontrolling Interests — Partially Owned Properties | 726 | 558 | (2,650 | ) | ||||||||
| Net income attributable to controlling interests | $ | 296,709 | $ | 382,587 | $ | 433,763 | ||||||
ALLOCATION OF NET INCOME | ||||||||||||
| Preference Units | $ | 14,368 | $ | 14,479 | $ | 14,507 | ||||||
| Preference Interests and Junior Preference Units | $ | — | $ | 9 | $ | 15 | ||||||
| General Partner | $ | 269,242 | $ | 347,794 | $ | 393,115 | ||||||
| Limited Partners | 13,099 | 20,305 | 26,126 | |||||||||
| Net income available to Units | $ | 282,341 | $ | 368,099 | $ | 419,241 | ||||||
Earnings per Unit — basic: | ||||||||||||
| (Loss) from continuing operations available to Units | $ | (0.11 | ) | $ | (0.04 | ) | $ | (0.20 | ) | |||
| Net income available to Units | $ | 0.95 | $ | 1.27 | $ | 1.46 | ||||||
| Weighted average Units outstanding | 296,527 | 289,167 | 287,631 | |||||||||
Earnings per Unit — diluted: | ||||||||||||
| (Loss) from continuing operations available to Untis | $ | (0.11 | ) | $ | (0.04 | ) | $ | (0.20 | ) | |||
| Net income available to Units | $ | 0.95 | $ | 1.27 | $ | 1.46 | ||||||
| Weighted average Units outstanding | 296,527 | 289,167 | 287,631 | |||||||||
F-5
CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)
(Amounts in thousands except per OP Unit data)
| Year Ended December 31, | ||||||||||||
| 2008 | 2007 | 2006 | ||||||||||
Comprehensive income: | ||||||||||||
Net income | $ | 447,035 | $ | 1,055,228 | $ | 1,148,104 | ||||||
Other comprehensive (loss) – derivative instruments: | ||||||||||||
Unrealized holding (losses) arising during the year | (23,815 | ) | (3,853 | ) | (2,043 | ) | ||||||
Losses reclassified into earnings from other comprehensive income | 2,696 | 1,954 | 2,247 | |||||||||
Other comprehensive income – other instruments: | ||||||||||||
Unrealized holding gains arising during the year | 1,202 | 27 | 258 | |||||||||
Comprehensive income | $ | 427,118 | $ | 1,053,356 | $ | 1,148,566 | ||||||
| Year Ended December 31, | ||||||||||||
| 2010 | 2009 | 2008 | ||||||||||
| Comprehensive income: | ||||||||||||
| Net income | $ | 295,983 | $ | 382,029 | $ | 436,413 | ||||||
| Other comprehensive (loss) income — derivative instruments: | ||||||||||||
| Unrealized holding (losses) gains arising during the year | (65,894 | ) | 37,676 | (23,815 | ) | |||||||
| Losses reclassified into earnings from other comprehensive income | 3,338 | 3,724 | 2,696 | |||||||||
| Other | — | 449 | — | |||||||||
| Other comprehensive income (loss) — other instruments: | ||||||||||||
| Unrealized holding gains arising during the year | 57 | 3,574 | 1,202 | |||||||||
| (Gains) realized during the year | — | (4,943 | ) | — | ||||||||
| Comprehensive income | 233,484 | 422,509 | 416,496 | |||||||||
| Comprehensive (income) attributable to Noncontrolling Interests — Partially Owned Properties | 726 | 558 | (2,650 | ) | ||||||||
| Comprehensive income attributable to controlling interests | $ | 234,210 | $ | 423,067 | $ | 413,846 | ||||||
F-6
| Year Ended December 31, | ||||||||||||
| 2008 | 2007 | 2006 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net income | $ | 447,035 | $ | 1,055,228 | $ | 1,148,104 | ||||||
Adjustments to reconcile net income to net cash provided by operating | ||||||||||||
Allocation to Minority Interests – Partially Owned Properties | 2,650 | 2,200 | 3,132 | |||||||||
Depreciation | 602,908 | 616,414 | 592,637 | |||||||||
Amortization of deferred financing costs | 9,701 | 11,849 | 9,134 | |||||||||
Amortization of discounts and premiums on debt | (3,542 | ) | (4,990 | ) | (6,506 | ) | ||||||
Amortization of discounts on corporate notes | (365 | ) | - | - | ||||||||
Amortization of deferred settlements on derivative instruments | 1,317 | 575 | 841 | |||||||||
Impairment | 122,103 | 1,726 | 34,353 | |||||||||
(Income) from technology investments | - | - | (4,021 | ) | ||||||||
Loss (income) from investments in unconsolidated entities | 107 | (332 | ) | 631 | ||||||||
Distributions from unconsolidated entities – return on capital | 116 | 102 | 171 | |||||||||
Net (gain) on sales of unconsolidated entities | (2,876 | ) | (2,629 | ) | (370 | ) | ||||||
Net (gain) on sales of land parcels | (2,976 | ) | (6,360 | ) | (2,792 | ) | ||||||
Net (gain) on sales of discontinued operations | (392,857 | ) | (933,013 | ) | (1,019,603 | ) | ||||||
(Gain) loss on debt extinguishments | (18,656 | ) | 3,339 | 12,171 | ||||||||
Unrealized loss (gain) on derivative instruments | 500 | (1 | ) | 7 | ||||||||
Compensation paid with Company Common Shares | 22,311 | 21,631 | 22,080 | |||||||||
Other operating activities, net | - | (19 | ) | 555 | ||||||||
Changes in assets and liabilities: | ||||||||||||
(Increase) decrease in deposits – restricted | (2,003 | ) | 3,406 | 2,225 | ||||||||
(Increase) decrease in other assets | (1,538 | ) | (5,352 | ) | 975 | |||||||
(Decrease) in accounts payable and accrued expenses | (821 | ) | (9,760 | ) | (7,637 | ) | ||||||
(Decrease) increase in accrued interest payable | (10,871 | ) | 33,545 | 17,192 | ||||||||
(Decrease) increase in other liabilities | (19,412 | ) | 1,482 | (50,727 | ) | |||||||
Increase in security deposits | 2,196 | 4,087 | 2,914 | |||||||||
Net cash provided by operating activities | 755,027 | 793,128 | 755,466 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Investment in real estate – acquisitions | (388,083 | ) | (1,680,074 | ) | (1,718,105 | ) | ||||||
Investment in real estate – development/other | (521,546 | ) | (480,184 | ) | (291,338 | ) | ||||||
Improvements to real estate | (169,838 | ) | (252,675 | ) | (255,180 | ) | ||||||
Additions to non-real estate property | (2,327 | ) | (7,696 | ) | (10,652 | ) | ||||||
Interest capitalized for real estate under development | (60,072 | ) | (45,107 | ) | (20,734 | ) | ||||||
Proceeds from disposition of real estate, net | 887,576 | 2,012,939 | 2,318,247 | |||||||||
Proceeds from disposition of unconsolidated entities | 2,629 | - | 373 | |||||||||
Proceeds from technology investments | - | - | 4,021 | |||||||||
Investments in unconsolidated entities | - | (191 | ) | (1,072 | ) | |||||||
Distributions from unconsolidated entities – return of capital | 405 | 122 | 92 | |||||||||
Investment in corporate notes/other | (158,367 | ) | - | - | ||||||||
Decrease (increase) in deposits on real estate acquisitions, net | 65,395 | 245,667 | (296,589 | ) | ||||||||
Decrease in mortgage deposits | 445 | 5,354 | 10,098 | |||||||||
| Year Ended December 31, | ||||||||||||
| 2010 | 2009 | 2008 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
| Net income | $ | 295,983 | $ | 382,029 | $ | 436,413 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
| Depreciation | 673,403 | 600,375 | 602,908 | |||||||||
| Amortization of deferred financing costs | 10,406 | 13,127 | 9,701 | |||||||||
| Amortization of discounts on investment securities | — | (1,661 | ) | (365 | ) | |||||||
| Amortization of discounts and premiums on debt | (471 | ) | 5,857 | 9,730 | ||||||||
| Amortization of deferred settlements on derivative instruments | 2,804 | 2,228 | 1,317 | |||||||||
| Impairment | 45,380 | 11,124 | 116,418 | |||||||||
| Write-off of pursuit costs | 5,272 | 4,838 | 5,535 | |||||||||
| Property acquisition costs | 6,656 | 1,650 | 225 | |||||||||
| Loss from investments in unconsolidated entities | 735 | 2,815 | 107 | |||||||||
| Distributions from unconsolidated entities — return on capital | 61 | 153 | 116 | |||||||||
| Net (gain) on sales of investment securities | — | (4,943 | ) | — | ||||||||
| Net (gain) on sales of unconsolidated entities | (28,101 | ) | (10,689 | ) | (2,876 | ) | ||||||
| Net loss (gain) on sales of land parcels | 1,395 | — | (2,976 | ) | ||||||||
| Net (gain) on sales of discontinued operations | (297,956 | ) | (335,299 | ) | (392,857 | ) | ||||||
| Loss (gain) on debt extinguishments | 2,457 | 17,525 | (18,656 | ) | ||||||||
| Unrealized loss (gain) on derivative instruments | 1 | (3 | ) | 500 | ||||||||
| Compensation paid with Company Common Shares | 18,875 | 17,843 | 22,311 | |||||||||
Changes in assets and liabilities: | ||||||||||||
| Decrease (increase) in deposits — restricted | 3,316 | 3,117 | (1,903 | ) | ||||||||
| (Increase) decrease in other assets | (9,048 | ) | 11,768 | (1,488 | ) | |||||||
| (Decrease) in accounts payable and accrued expenses | (5,454 | ) | (34,524 | ) | (821 | ) | ||||||
| (Decrease) in accrued interest payable | (4,000 | ) | (11,997 | ) | (10,871 | ) | ||||||
| Increase (decrease) in other liabilities | 9,972 | 2,220 | (19,412 | ) | ||||||||
| Increase (decrease) in security deposits | 1,007 | (5,091 | ) | 2,196 | ||||||||
| Net cash provided by operating activities | 732,693 | 672,462 | 755,252 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
| Investment in real estate — acquisitions | (1,189,210 | ) | (175,531 | ) | (388,083 | ) | ||||||
| Investment in real estate — development/other | (131,301 | ) | (330,623 | ) | (521,546 | ) | ||||||
| Improvements to real estate | (138,208 | ) | (123,937 | ) | (169,838 | ) | ||||||
| Additions to non-real estate property | (2,991 | ) | (2,028 | ) | (2,327 | ) | ||||||
| Interest capitalized for real estate under development | (13,008 | ) | (34,859 | ) | (60,072 | ) | ||||||
| Proceeds from disposition of real estate, net | 672,700 | 887,055 | 887,576 | |||||||||
| Distributions from unconsolidated entities — return of capital | 26,924 | 6,521 | 3,034 | |||||||||
| Purchase of investment securities | — | (77,822 | ) | (158,367 | ) | |||||||
| Proceeds from sale of investment securities | 25,000 | 215,753 | — | |||||||||
| Property acquisition costs | (6,656 | ) | (1,650 | ) | (225 | ) | ||||||
| Decrease (increase) in deposits on real estate acquisitions, net | 137,106 | (250,257 | ) | 65,395 | ||||||||
| Decrease in mortgage deposits | 4,699 | 2,437 | 445 | |||||||||
| Consolidation of previously unconsolidated properties | (26,854 | ) | — | — | ||||||||
| Deconsolidation of previously consolidated properties | 11,708 | — | — | |||||||||
| Acquisition of Noncontrolling Interests — Partially Owned Properties | (16,023 | ) | (11,480 | ) | (20 | ) | ||||||
| Net cash (used for) provided by investing activities | (646,114 | ) | 103,579 | (344,028 | ) | |||||||
F-7
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Amounts in thousands)
| Year Ended December 31, | ||||||||||||
| 2008 | 2007 | 2006 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES (continued): | ||||||||||||
Consolidation of previously Unconsolidated Properties: | ||||||||||||
Via EITF 04-5 (cash consolidated) | $ | - | $ | - | $ | 1,436 | ||||||
Acquisition of Minority Interests – Partially Owned Properties | (20 | ) | - | (71 | ) | |||||||
Other investing activities, net | - | 1,200 | 2 | |||||||||
Net cash (used for) investing activities | (343,803 | ) | (200,645 | ) | (259,472 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Loan and bond acquisition costs | (9,233 | ) | (26,257 | ) | (11,662 | ) | ||||||
Mortgage notes payable: | ||||||||||||
Proceeds | 1,841,453 | 827,831 | 267,045 | |||||||||
Restricted cash | 37,262 | (113,318 | ) | (20,193 | ) | |||||||
Lump sum payoffs | (411,391 | ) | (523,299 | ) | (466,035 | ) | ||||||
Scheduled principal repayments | (24,034 | ) | (24,732 | ) | (26,967 | ) | ||||||
Prepayment premiums/fees | (81 | ) | (3,339 | ) | (12,171 | ) | ||||||
Notes, net: | ||||||||||||
Proceeds | - | 1,493,030 | 1,039,927 | |||||||||
Lump sum payoffs | (304,043 | ) | (150,000 | ) | (60,000 | ) | ||||||
Scheduled principal repayments | - | (4,286 | ) | (4,286 | ) | |||||||
Gain on debt extinguishments | 18,737 | - | - | |||||||||
Lines of credit: | ||||||||||||
Proceeds | 841,000 | 17,536,000 | 6,417,500 | |||||||||
Repayments | (980,000 | ) | (17,857,000 | ) | (6,726,500 | ) | ||||||
(Payments on) proceeds from settlement of derivative instruments | (26,781 | ) | 2,370 | 10,722 | ||||||||
Proceeds from sale of OP Units | 6,170 | 7,165 | 7,972 | |||||||||
Proceeds from exercise of EQR options | 24,634 | 28,760 | 69,726 | |||||||||
OP Units repurchased and retired | (12,548 | ) | (1,221,680 | ) | (83,230 | ) | ||||||
Redemption of Preference Units | - | (175,000 | ) | (115,000 | ) | |||||||
Redemption of Preference Interests | - | - | (25,500 | ) | ||||||||
Premium on redemption of Preference Units | - | (24 | ) | (27 | ) | |||||||
Premium on redemption of Preference Interests | - | - | (10 | ) | ||||||||
Payment of offering costs | (102 | ) | (175 | ) | (125 | ) | ||||||
Other financing activities, net | (16 | ) | (14 | ) | - | |||||||
Contributions – Minority Interests – Partially Owned Properties | 2,083 | 10,267 | 9,582 | |||||||||
Distributions: | ||||||||||||
OP Units – General Partner | (522,195 | ) | (526,281 | ) | (514,055 | ) | ||||||
Preference Units | (14,521 | ) | (27,008 | ) | (39,344 | ) | ||||||
Preference Interests and Junior Preference Units | (15 | ) | (453 | ) | (2,054 | ) | ||||||
OP Units – Limited Partners | (34,584 | ) | (35,543 | ) | (36,202 | ) | ||||||
Minority Interests – Partially Owned Properties | (3,056 | ) | (18,943 | ) | (3,658 | ) | ||||||
Net cash provided by (used for) financing activities | 428,739 | (801,929 | ) | (324,545 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 839,963 | (209,446 | ) | 171,449 | ||||||||
Cash and cash equivalents, beginning of year | 50,831 | 260,277 | 88,828 | |||||||||
Cash and cash equivalents, end of year | $ | 890,794 | $ | 50,831 | $ | 260,277 | ||||||
| Year Ended December 31, | ||||||||||||
| 2010 | 2009 | 2008 | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
| Loan and bond acquisition costs | $ | (8,811 | ) | $ | (9,291 | ) | $ | (9,233 | ) | |||
Mortgage notes payable: | ||||||||||||
| Proceeds | 173,561 | 738,798 | 1,841,453 | |||||||||
| Restricted cash | 73,232 | 46,664 | 37,262 | |||||||||
| Lump sum payoffs | (635,285 | ) | (939,022 | ) | (411,391 | ) | ||||||
| Scheduled principal repayments | (16,769 | ) | (17,763 | ) | (24,034 | ) | ||||||
| (Loss) gain on debt extinguishments | (2,457 | ) | 2,400 | (81 | ) | |||||||
Notes, net: | ||||||||||||
| Proceeds | 595,422 | — | — | |||||||||
| Lump sum payoffs | — | (850,115 | ) | (304,043 | ) | |||||||
| (Loss) gain on debt extinguishments | — | (19,925 | ) | 18,737 | ||||||||
Lines of credit: | ||||||||||||
| Proceeds | 5,513,125 | — | 841,000 | |||||||||
| Repayments | (5,513,125 | ) | — | (980,000 | ) | |||||||
| (Payments on) proceeds from settlement of derivative instruments | (10,040 | ) | 11,253 | (26,781 | ) | |||||||
| Proceeds from sale of OP Units | 329,452 | 86,184 | — | |||||||||
| Proceeds from EQR’s Employee Share Purchase Plan (ESPP) | 5,112 | 5,292 | 6,170 | |||||||||
| Proceeds from exercise of EQR options | 71,596 | 9,136 | 24,634 | |||||||||
| OP Units repurchased and retired | (1,887 | ) | (1,124 | ) | (12,548 | ) | ||||||
| Redemption of Preference Units | (877 | ) | — | — | ||||||||
| Payment of offering costs | (4,657 | ) | (2,536 | ) | (102 | ) | ||||||
| Other financing activities, net | (48 | ) | (16 | ) | (16 | ) | ||||||
| Contributions — Noncontrolling Interests — Partially Owned Properties | 222 | 893 | 2,083 | |||||||||
| Contributions — Limited Partners | — | 78 | — | |||||||||
Distributions: | ||||||||||||
| OP Units — General Partner | (379,969 | ) | (488,604 | ) | (522,195 | ) | ||||||
| Preference Units | (14,471 | ) | (14,479 | ) | (14,521 | ) | ||||||
| Preference Interests and Junior Preference Units | — | (12 | ) | (15 | ) | |||||||
| OP Units — Limited Partners | (18,867 | ) | (28,935 | ) | (34,584 | ) | ||||||
| Noncontrolling Interests — Partially Owned Properties | (2,918 | ) | (2,423 | ) | (3,056 | ) | ||||||
| Net cash provided by (used for) financing activities | 151,541 | (1,473,547 | ) | 428,739 | ||||||||
| Net increase (decrease) in cash and cash equivalents | 238,120 | (697,506 | ) | 839,963 | ||||||||
| Cash and cash equivalents, beginning of year | 193,288 | 890,794 | 50,831 | |||||||||
| Cash and cash equivalents, end of year | $ | 431,408 | $ | 193,288 | $ | 890,794 | ||||||
F-8
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Amounts in thousands)
| Year Ended December 31, | ||||||||||||
| 2008 | 2007 | 2006 | ||||||||||
SUPPLEMENTAL INFORMATION: | ||||||||||||
Cash paid for interest, net of amounts capitalized | $ | 491,803 | $ | 457,700 | $ | 444,654 | ||||||
Net cash (received) paid for income and other taxes | $ | (1,252 | ) | $ | (1,587 | ) | $ | 11,750 | ||||
Real estate acquisitions/dispositions/other: | ||||||||||||
Mortgage loans assumed | $ | 24,946 | $ | 226,196 | $ | 126,988 | ||||||
Valuation of OP Units issued | $ | 849 | $ | - | $ | 49,591 | ||||||
Mortgage loans (assumed) by purchaser | $ | - | $ | (76,744 | ) | $ | (117,949 | ) | ||||
Consolidation of previously Unconsolidated Properties – Via EITF 04-5: | ||||||||||||
Investment in real estate, net | $ | - | $ | - | $ | (24,637 | ) | |||||
Mortgage loans consolidated | $ | - | $ | - | $ | 22,545 | ||||||
Deferred financing costs, net | $ | - | $ | - | $ | (265 | ) | |||||
Investments in unconsolidated entities | $ | - | $ | - | $ | 2,602 | ||||||
Net other liabilities recorded | $ | - | $ | - | $ | 1,191 | ||||||
Amortization of deferred financing costs: | ||||||||||||
Investment in real estate, net | $ | (1,986 | ) | $ | (1,521 | ) | $ | (45 | ) | |||
Deferred financing costs, net | $ | 11,687 | $ | 13,370 | $ | 9,179 | ||||||
Amortization of discounts and premiums on debt: | ||||||||||||
Investment in real estate, net | $ | (6 | ) | $ | - | $ | - | |||||
Mortgage notes payable | $ | (6,287 | ) | $ | (6,252 | ) | $ | (6,963 | ) | |||
Notes, net | $ | 2,751 | $ | 1,262 | $ | 457 | ||||||
Amortization of deferred settlements on derivative instruments: | ||||||||||||
Other liabilities | $ | (1,379 | ) | $ | (1,379 | ) | $ | (1,406 | ) | |||
Accumulated other comprehensive loss | $ | 2,696 | $ | 1,954 | $ | 2,247 | ||||||
Unrealized loss (gain) on derivative instruments: | ||||||||||||
Other assets | $ | (6,680 | ) | $ | (2,347 | ) | $ | (1,079 | ) | |||
Mortgage notes payable | $ | 6,272 | $ | 7,492 | $ | 2,049 | ||||||
Notes, net | $ | 1,846 | $ | 4,323 | $ | 551 | ||||||
Other liabilities | $ | 22,877 | $ | (5,616 | ) | $ | 529 | |||||
Accumulated other comprehensive loss | $ | (23,815 | ) | $ | (3,853 | ) | $ | (2,043 | ) | |||
(Payments on) proceeds from settlement of derivative instruments: | ||||||||||||
Other assets | $ | (98 | ) | $ | 2,375 | $ | 10,729 | |||||
Other liabilities | $ | (26,683 | ) | $ | (5 | ) | $ | (7 | ) | |||
| Year Ended December 31, | ||||||||||||
| 2010 | 2009 | 2008 | ||||||||||
SUPPLEMENTAL INFORMATION: | ||||||||||||
| Cash paid for interest, net of amounts capitalized | $ | 475,374 | $ | 508,847 | $ | 491,803 | ||||||
| Net cash (received) paid for income and other taxes | $ | (2,740 | ) | $ | 3,968 | $ | (1,252 | ) | ||||
Real estate acquisitions/dispositions/other: | ||||||||||||
| Mortgage loans assumed | $ | 359,082 | $ | — | $ | 24,946 | ||||||
| Valuation of OP Units issued | $ | 8,245 | $ | 1,034 | $ | 849 | ||||||
| Mortgage loans (assumed) by purchaser | $ | (39,999 | ) | $ | (17,313 | ) | $ | — | ||||
Amortization of deferred financing costs: | ||||||||||||
| Investment in real estate, net | $ | (2,768 | ) | $ | (3,585 | ) | $ | (1,986 | ) | |||
| Deferred financing costs, net | $ | 13,174 | $ | 16,712 | $ | 11,687 | ||||||
Amortization of discounts and premiums on debt: | ||||||||||||
| Investment in real estate, net | $ | — | $ | (3 | ) | $ | (6 | ) | ||||
| Mortgage notes payable | $ | (9,208 | ) | $ | (6,097 | ) | $ | (6,287 | ) | |||
| Notes, net | $ | 8,737 | $ | 11,957 | $ | 16,023 | ||||||
Amortization of deferred settlements on derivative instruments: | ||||||||||||
| Other liabilities | $ | (534 | ) | $ | (1,496 | ) | $ | (1,379 | ) | |||
| Accumulated other comprehensive income | $ | 3,338 | $ | 3,724 | $ | 2,696 | ||||||
Unrealized loss (gain) on derivative instruments: | ||||||||||||
| Other assets | $ | 13,019 | $ | (33,261 | ) | $ | (6,680 | ) | ||||
| Mortgage notes payable | $ | (163 | ) | $ | (1,887 | ) | $ | 6,272 | ||||
| Notes, net | $ | 7,497 | $ | 719 | $ | 1,846 | ||||||
| Other liabilities | $ | 45,542 | $ | (3,250 | ) | $ | 22,877 | |||||
| Accumulated other comprehensive (loss) income | $ | (65,894 | ) | $ | 37,676 | $ | (23,815 | ) | ||||
(Payments on) proceeds from settlement of derivative instruments: | ||||||||||||
| Other assets | $ | — | $ | 11,253 | $ | (98 | ) | |||||
| Other liabilities | $ | (10,040 | ) | $ | — | $ | (26,683 | ) | ||||
Consolidation of previously unconsolidated properties: | ||||||||||||
| Investment in real estate, net | $ | (105,065 | ) | $ | — | $ | — | |||||
| Investments in unconsolidated entities | $ | 7,376 | $ | — | $ | — | ||||||
| Deposits — restricted | $ | (42,633 | ) | $ | — | $ | — | |||||
| Mortgage notes payable | $ | 112,631 | $ | — | $ | — | ||||||
| Net other assets recorded | $ | 837 | $ | — | $ | — | ||||||
Deconsolidation of previously consolidated properties: | ||||||||||||
| Investment in real estate, net | $ | 14,875 | $ | — | $ | — | ||||||
| Investments in unconsolidated entities | $ | (3,167 | ) | $ | — | $ | — | |||||
Other | ||||||||||||
| Receivable on sale of OP Units | $ | 37,550 | $ | — | $ | — | ||||||
| Transfer from notes, net to mortgage notes payable | $ | 35,600 | $ | — | $ | — | ||||||
F-9
| Year Ended December 31, | ||||||||||||
| 2008 | 2007 | 2006 | ||||||||||
PREFERENCE UNITS | ||||||||||||
Balance, beginning of year | $ | 209,662 | $ | 386,574 | $ | 504,096 | ||||||
Redemption of 9 1/8% Series C Cumulative Redeemable | - | - | (115,000 | ) | ||||||||
Redemption of 8.60% Series D Cumulative Redeemable | - | (175,000 | ) | - | ||||||||
Conversion of 7.00% Series E Cumulative Convertible | (828 | ) | (1,818 | ) | (2,357 | ) | ||||||
Conversion of 7.00% Series H Cumulative Convertible | (48 | ) | (94 | ) | (165 | ) | ||||||
Balance, end of year | $ | 208,786 | $ | 209,662 | $ | 386,574 | ||||||
PREFERENCE INTERESTS AND JUNIOR PREFERENCE UNITS | ||||||||||||
Balance, beginning of year | $ | 184 | $ | 11,684 | $ | 60,184 | ||||||
Redemption of Series G Preference Interests | - | - | (25,500 | ) | ||||||||
Conversion of Series H-J Preference Interests into OP Units held by | - | (11,500 | ) | (23,000 | ) | |||||||
Balance, end of year | $ | 184 | $ | 184 | $ | 11,684 | ||||||
GENERAL PARTNER | ||||||||||||
Balance, beginning of year | $ | 4,868,738 | $ | 5,511,658 | $ | 4,905,716 | ||||||
OP Unit Issuance: | ||||||||||||
Conversion of Preference Units into OP Units held by General Partner | 876 | 1,912 | 2,522 | |||||||||
Conversion of Preference Interests into OP Units held by General | - | 11,500 | 23,000 | |||||||||
Conversion of OP Units held by Limited Partners into OP Units held | 49,901 | 32,445 | 27,882 | |||||||||
Exercise of EQR share options | 24,634 | 28,760 | 69,726 | |||||||||
EQR’s Employee Share Purchase Plan (ESPP) | 6,170 | 7,165 | 7,972 | |||||||||
Share-based employee compensation expense: | ||||||||||||
EQR performance shares | (8 | ) | 1,278 | 1,795 | ||||||||
EQR restricted shares | 17,278 | 15,230 | 14,944 | |||||||||
EQR share options | 5,846 | 5,345 | 5,198 | |||||||||
EQR ESPP discount | 1,289 | 1,701 | 1,578 | |||||||||
OP Units repurchased and retired | (7,908 | ) | (1,226,320 | ) | (83,230 | ) | ||||||
Offering costs | (102 | ) | (175 | ) | (125 | ) | ||||||
Net income available to OP Units – General Partner | 405,585 | 960,676 | 1,031,766 | |||||||||
Premium on redemption of Preference Units – original issuance costs | - | 6,130 | 3,938 | |||||||||
Premium on redemption of Preference Interests – original issuance costs | - | - | 674 | |||||||||
OP Units – General Partner distributions | (523,648 | ) | (520,700 | ) | (521,871 | ) | ||||||
Supplemental Executive Retirement Plan (SERP) | (7,304 | ) | (6,709 | ) | (9,947 | ) | ||||||
Adjustment for Limited Partners ownership in Operating Partnership | (17,040 | ) | 38,842 | 30,120 | ||||||||
Balance, end of year | $ | 4,824,307 | $ | 4,868,738 | $ | 5,511,658 | ||||||
| Year Ended December 31, | ||||||||||||
| PARTNERS’ CAPITAL | 2010 | 2009 | 2008 | |||||||||
PREFERENCE UNITS | ||||||||||||
| Balance, beginning of year | $ | 208,773 | $ | 208,786 | $ | 209,662 | ||||||
| Redemption of 7.00% Series E Cumulative Convertible | (834 | ) | — | — | ||||||||
| Conversion of 7.00% Series E Cumulative Convertible | (7,378 | ) | (13 | ) | (828 | ) | ||||||
| Conversion of 7.00% Series H Cumulative Convertible | (561 | ) | — | (48 | ) | |||||||
| Balance, end of year | $ | 200,000 | $ | 208,773 | $ | 208,786 | ||||||
PREFERENCE INTERESTS AND JUNIOR PREFERENCE UNITS | ||||||||||||
| Balance, beginning of year | $ | — | $ | 184 | $ | 184 | ||||||
| Conversion of Series B Junior Preference Units | — | (184 | ) | — | ||||||||
| Balance, end of year | $ | — | $ | — | $ | 184 | ||||||
GENERAL PARTNER | ||||||||||||
| Balance, beginning of year | $ | 4,833,885 | $ | 4,732,369 | $ | 4,723,590 | ||||||
| OP Unit Issuance: | ||||||||||||
| Conversion of Preference Units into OP Units held by General Partner | 7,939 | 13 | 876 | |||||||||
| Conversion of OP Units held by Limited Partners into OP Units held by General Partner | 19,722 | 48,803 | 49,901 | |||||||||
| Issuance of OP Units | 291,902 | 123,734 | — | |||||||||
| Exercise of EQR share options | 71,596 | 9,136 | 24,634 | |||||||||
| EQR’s Employee Share Purchase Plan (ESPP) | 5,112 | 5,292 | 6,170 | |||||||||
| Share-based employee compensation expense: | ||||||||||||
| EQR performance shares | — | 179 | (8 | ) | ||||||||
| EQR restricted shares | 9,781 | 11,132 | 17,278 | |||||||||
| EQR share options | 7,421 | 5,996 | 5,846 | |||||||||
| EQR ESPP discount | 1,290 | 1,303 | 1,289 | |||||||||
| OP Units repurchased and retired | (1,887 | ) | (1,124 | ) | (7,908 | ) | ||||||
| Offering costs | (4,657 | ) | (2,536 | ) | (102 | ) | ||||||
| Net income available to Units — General Partner | 269,242 | 347,794 | 393,115 | |||||||||
| OP Units — General Partner distributions | (419,320 | ) | (450,287 | ) | (523,648 | ) | ||||||
| Supplemental Executive Retirement Plan (SERP) | 8,559 | 27,809 | (7,304 | ) | ||||||||
| Acquisition of Noncontrolling Interests — Partially Owned Properties | (16,888 | ) | (1,496 | ) | — | |||||||
| Change in market value of Redeemable Limited Partners | (129,918 | ) | (14,544 | ) | 65,524 | |||||||
| Adjustment for Limited Partners ownership in Operating Partnership | (5,775 | ) | (9,688 | ) | (16,884 | ) | ||||||
| Balance, end of year | $ | 4,948,004 | $ | 4,833,885 | $ | 4,732,369 | ||||||
LIMITED PARTNERS | ||||||||||||
| Balance, beginning of year | $ | 116,120 | $ | 137,645 | $ | 162,185 | ||||||
| Issuance of OP Units | 8,245 | 1,034 | 849 | |||||||||
| Issuance of LTIP Units | — | 78 | — | |||||||||
| Conversion of OP Units held by Limited Partners into OP Units held by General Partner | (19,722 | ) | (48,803 | ) | (49,901 | ) | ||||||
| Equity compensation associated with Units — Limited Partners | 2,524 | 1,194 | — | |||||||||
| Net income available to Units — Limited Partners | 13,099 | 20,305 | 26,126 | |||||||||
| Units — Limited Partners distributions | (20,300 | ) | (25,679 | ) | (33,745 | ) | ||||||
| Change in carrying value of Redeemable Limited Partners | 4,658 | 20,658 | 15,247 | |||||||||
| Adjustment for Limited Partners ownership in Operating Partnership | 5,775 | 9,688 | 16,884 | |||||||||
| Balance, end of year | $ | 110,399 | $ | 116,120 | $ | 137,645 | ||||||
F-10
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (Continued)
(Amounts in thousands)
| Year Ended December 31, | ||||||||||||
| 2008 | 2007 | 2006 | ||||||||||
LIMITED PARTNERS | ||||||||||||
Balance, beginning of year | $ | 331,626 | $ | 372,961 | $ | 345,034 | ||||||
OP Unit Issuance: | ||||||||||||
Acquisitions/consolidations | 849 | - | 49,591 | |||||||||
Conversion of OP Units held by Limited Partners into OP Units held by | (49,901 | ) | (32,445 | ) | (27,882 | ) | ||||||
Net income available to OP Units – Limited Partners | 26,928 | 65,165 | 72,574 | |||||||||
OP Units – Limited Partners distributions | (33,745 | ) | (35,213 | ) | (36,236 | ) | ||||||
Adjustment for Limited Partners ownership in Operating Partnership | 17,040 | (38,842 | ) | (30,120 | ) | |||||||
Balance, end of year | $ | 292,797 | $ | 331,626 | $ | 372,961 | ||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||||||||
Balance, beginning of year | $ | (15,882 | ) | $ | (14,010 | ) | $ | (14,472 | ) | |||
Accumulated other comprehensive (loss) – derivative instruments: | ||||||||||||
Unrealized holding (losses) arising during the year | (23,815 | ) | (3,853 | ) | (2,043 | ) | ||||||
Losses reclassified into earnings from other comprehensive income | 2,696 | 1,954 | 2,247 | |||||||||
Accumulated other comprehensive income – other instruments: | ||||||||||||
Unrealized holding gains arising during the year | 1,202 | 27 | 258 | |||||||||
Balance, end of year | $ | (35,799 | ) | $ | (15,882 | ) | $ | (14,010 | ) | |||
| Year Ended December 31, | ||||||||||||
| PARTNERS’ CAPITAL (continued) | 2010 | 2009 | 2008 | |||||||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ||||||||||||
| Balance, beginning of year | $ | 4,681 | $ | (35,799 | ) | $ | (15,882 | ) | ||||
| Accumulated other comprehensive (loss) income — derivative instruments: | ||||||||||||
| Unrealized holding (losses) gains arising during the year | (65,894 | ) | 37,676 | (23,815 | ) | |||||||
| Losses reclassified into earnings from other comprehensive income | 3,338 | 3,724 | 2,696 | |||||||||
| Other | — | 449 | — | |||||||||
| Accumulated other comprehensive income (loss) — other instruments: | ||||||||||||
| Unrealized holding gains arising during the year | 57 | 3,574 | 1,202 | |||||||||
| (Gains) realized during the year | — | (4,943 | ) | — | ||||||||
| Balance, end of year | $ | (57,818 | ) | $ | 4,681 | $ | (35,799 | ) | ||||
NONCONTROLLING INTERESTS | ||||||||||||
NONCONTROLLING INTERESTS — PARTIALLY OWNED PROPERTIES | ||||||||||||
| Balance, beginning of year | $ | 11,054 | $ | 25,520 | $ | 26,236 | ||||||
| Net (loss) income attributable to Noncontrolling Interests | (726 | ) | (558 | ) | 2,650 | |||||||
| Contributions by Noncontrolling Interests | 222 | 893 | 2,083 | |||||||||
| Distributions to Noncontrolling Interests | (2,952 | ) | (2,439 | ) | (3,072 | ) | ||||||
| Acquisition of Noncontrolling Interests — Partially Owned Properties | 175 | (11,705 | ) | (1,877 | ) | |||||||
| Other | 218 | (657 | ) | (500 | ) | |||||||
| Balance, end of year | $ | 7,991 | $ | 11,054 | $ | 25,520 | ||||||
F-11
|
|
| Properties | Units | |||
Wholly Owned Properties | 477 | 127,002 | ||
Partially Owned Properties: | ||||
Consolidated | 28 | 5,757 | ||
Unconsolidated | 41 | 9,776 | ||
Military Housing (Fee Managed) | 2 | 4,709 | ||
| 548 | 147,244 |
| Properties | Apartment Units | |||||||
| Wholly Owned Properties | 425 | 119,634 | ||||||
| Partially Owned Properties — Consolidated | 24 | 5,232 | ||||||
| Military Housing | 2 | 4,738 | ||||||
| 451 | 129,604 | |||||||
leases.
|
|
Minority
The Operating Partnership’s mergers and acquisitions were accounted for as purchases in accordance with either Accounting Principles Board (“APB”) Opinion No. 16,Business Combinations, or SFAS No. 141,Business Combinations. SFAS No. 141 requires all business combinations initiated after June 30, 2001 be accounted for under the purchase method of accounting. The fair value of the consideration given by the Operating Partnership in the mergers was used as the valuation basis for each of the combinations. The accompanying consolidated statements of operations and cash flows include the results of the properties purchased through the mergers and through acquisitions from their respective closing dates.
F-12
Land – Based on actual purchase price if acquired separately or market research/comparables if acquired with an operating property.
Furniture, Fixtures and Equipment – Ranges between $8,000 and $13,000 per apartment unit acquired as an estimate of the fair value of the appliances and fixtures inside a unit. The per-unit amount applied depends on the type of apartment building acquired. Depreciation is calculated on the straight-line method over an estimated useful life of five years.
| • | Land — Based on actual purchase price if acquired separately or market research/comparables if acquired with an operating property. | ||
| • | Furniture, Fixtures and Equipment — Ranges between $8,000 and $13,000 per apartment unit acquired as an estimate of the fair value of the appliances and fixtures inside an apartment unit. The per-apartment unit amount applied depends on the type of apartment building acquired. Depreciation is calculated on the straight-line method over an estimated useful life of five years. | ||
| • | In-Place Leases — The Operating Partnership considers the value of acquired in-place leases and the amortization period is the average remaining term of each respective in-place acquired lease. | ||
| • | Other Intangible Assets — The Operating Partnership considers whether it has acquired other intangible assets, including any customer relationship intangibles and the amortization period is the estimated useful life of the acquired intangible asset. | ||
| • | Building — Based on the fair value determined on an “as-if vacant” basis. Depreciation is calculated on the straight-line method over an estimated useful life of thirty years. |
In-Place Leases – The Operating Partnership considers the value of acquired in-place leases that meet the definition outlined in SFAS No. 141, paragraph 37. The amortization period is the average remaining term of each respective in-place acquired lease.
Other Intangible Assets – The Operating Partnership considers whether it has acquired other intangible assets that meet the definition outlined in SFAS No. 141, paragraph 39, including any customer relationship intangibles. The amortization period is the estimated useful life of the acquired intangible asset.
Building – Based on the fair value determined on an “as-if vacant” basis. Depreciation is calculated on the straight-line method over an estimated useful life of thirty years.
Replacements inside aan apartment unit such as appliances and carpeting are depreciated over a five-year estimated useful life. Expenditures for ordinary maintenance and repairs are expensed to operations as incurred and significant renovations and improvements that improve and/or extend the useful life of the asset are capitalized over their estimated useful life, generally five to ten years. Initial direct leasing costs are expensed as incurred as such expense approximates the deferral and amortization of initial direct leasing costs over the lease terms. Property sales or dispositions are recorded when title transfers to unrelated third parties, contingencies have been removed and sufficient cash consideration has been received by the Operating Partnership. Upon disposition, the related costs and accumulated depreciation are removed from the respective accounts. Any gain or loss on sale is recognized in accordance with accounting principles generally accepted in the United States.
In June 2001, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 142,Goodwill and Other Intangible Assets. SFAS No. 142 prohibits the amortization of goodwill and requires that goodwill be reviewed for impairment at least annually. In August 2001, the FASB issued SFAS No. 144,Accounting for the Impairment or Disposal of Long-Lived Assets. SFAS Nos. 142 and 144 were effective for fiscal years beginning after December 15, 2001. The Operating Partnership adopted these standards effective January 1, 2002. See Notes 13 and 19 for further discussion.
asset.
F-13
The Operating Partnership follows the guidance in SFAS No. 67,Accounting for Costs and Initial Rental Operations of Real Estate Projects, for
The Operating Partnership follows the guidance under SFAS No. 157,Fair Value Measurements, when valuing its financial instruments.
On January 1, 2001, the
F-14
The fair value of the Operating Partnership’s mortgage notes payable and unsecured notes were approximately $5.0 billion and $4.7 billion, respectively, at December 31, 2008. The fair values of the Operating Partnership’s financial instruments, other than mortgage notes payable, unsecured notes and derivative instruments, including cash and cash equivalents, lines of credit and other financial instruments, approximate their carrying or contract values. See Note 11 for further discussion of derivative and other fair value instruments.
options. Any EQR common share of beneficial interest, $0.01 par value per share (the “Common Shares”) issued pursuant to EQR’s incentive equity compensation and employee share purchase plans will result in the Operating Partnership issuing units of limited partnership interest (“OP Units”) to EQR on a one-for-one basis, with the Operating Partnership receiving the net cash proceeds of such issuances.
The cost related to share-based employee compensation included in the determination of net income for the years ended December 31, 2008, 2007 and 2006 is equal to that which would have been recognized if the fair value based method had been applied to all awards since the original effective date of SFAS No. 123(R).
| 2008 | 2007 | 2006 | ||||
Expected volatility (1) | 20.3% | 18.9% | 19.1% | |||
Expected life (2) | 5 years | 5 years | 6 years | |||
Expected dividend yield (3) | 4.95% | 5.41% | 6.04% | |||
Risk-free interest rate (4) | 2.67% | 4.74% | 4.52% | |||
Option valuation per share | $4.08 | $6.26 | $4.22 |
| 2010 | 2009 | 2008 | ||||||||||
| Expected volatility (1) | 32.4 | % | 26.8 | % | 20.3 | % | ||||||
| Expected life (2) | 5 years | 5 years | 5 years | |||||||||
| Expected dividend yield (3) | 4.85 | % | 4.68 | % | 4.95 | % | ||||||
| Risk-free interest rate (4) | 2.29 | % | 1.89 | % | 2.67 | % | ||||||
| Option valuation per share | $ | 6.18 | $ | 3.38 | $ | 4.08 | ||||||
| (1) |
| Expected volatility |
(2) | Expected life |
(3) | Expected dividend yield |
(4) | Risk-free interest rate |
F-15
entities after consideration of any net operating losses.
| Year Ended December 31, | |||||||||||
| 2008 | 2007 | 2006 | |||||||||
Income and other tax expense (benefit) (1) | $ | 5,286 | $ | 2,520 | $ | 4,346 | |||||
Discontinued operations, net (2) | (1,848 | ) | (7,309 | ) | 3,547 | ||||||
Provision for income, franchise and excise taxes (3) | $ | 3,438 | $ | (4,789 | ) | $ | 7,893 | ||||
| Year Ended December 31, | ||||||||||||
| 2010 | 2009 | 2008 | ||||||||||
| Income and other tax expense (benefit) (1) | $ | 334 | $ | 2,804 | $ | 5,279 | ||||||
| Discontinued operations, net (2) | 44 | (1,161 | ) | (1,841 | ) | |||||||
| Provision for income, franchise and excise taxes (3) | $ | 378 | $ | 1,643 | $ | 3,438 | ||||||
| (1) |
| Primarily includes state and local income, excise and franchise taxes. |
(2) | Primarily represents federal income taxes (recovered) |
(3) | All |
2028, 2029 and 2030.
| Year Ended December 31, | |||||||||
| 2008 | 2007 | 2006 | |||||||
Tax treatment of dividends and distributions: | |||||||||
Ordinary dividends | $ | 0.699 | $ | - | $ | 1.276 | |||
Qualified dividends | - | - | 0.090 | ||||||
Long-term capital gain | 0.755 | 1.426 | 0.330 | ||||||
Unrecaptured section 1250 gain | 0.476 | 0.444 | 0.094 | ||||||
Dividends and distributions declared per OP Unit outstanding | $ | 1.930 | $ | 1.870 | $ | 1.790 | |||
| Year Ended December 31, | ||||||||||||
| 2010 | 2009 | 2008 | ||||||||||
| Tax treatment of dividends and distributions: | ||||||||||||
| Ordinary dividends | $ | 0.607 | $ | 0.807 | $ | 0.699 | ||||||
| Long-term capital gain | 0.622 | 0.558 | 0.755 | |||||||||
| Unrecaptured section 1250 gain | 0.241 | 0.275 | 0.476 | |||||||||
| Dividends and distributions declared per Unit outstanding | $ | 1.470 | $ | 1.640 | $ | 1.930 | ||||||
F-16
the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
In December 2008, the FASB issued FASB Staff Position (“FSP”) FAS 140-4 and FIN 46(R)-8,Disclosures by Public Entities (Enterprises) about Transfers of Financial Assets and Interests in Variable Interest Entities (“FAS 140-4 and FIN 46(R)-8”). FAS 140-4 and FIN 46(R)-8 amends SFAS No. 140,Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, to require public companies to provide additional disclosures about transfers of financial assets. It also amends FIN No. 46(R) to require public enterprises, including sponsors that have a variable interest in a VIE, to provide additional disclosures about their involvement with VIEs. FAS 140-4 and FIN 46(R)-8 are effective for the Operating Partnership for the year ended December 31, 2008 and affects disclosures only. The adoption of this standardcodification has no impact on the Operating Partnership’s consolidated results of operations or financial position but changed the way we refer to accounting literature in our reports.
F-17
In July 2006,
The Operating Partnership adopted FIN No. 48 as required effective January 1, 2007. The adoption of FIN No. 48 did not have a material effect on the consolidated results of operations or financial position.
In September 2006, the FASB issued SFAS No. 157,Fair Value Measurements. SFAS No. 157 defines fair value, establishes a framework for measuring fair value in accordance with accounting principles generally accepted in the United States and expands disclosurequarter ended June 30, 2009, disclosures about fair value measurements. The Operating Partnership adopted SFAS No. 157of financial instruments are required for interim reporting periods in summarized financial information for publicly traded companies as required effective January 1, 2008. The adoption of SFAS No. 157 did not have a material effect on the consolidated results of operations orwell as in annual financial position. See Note 11 in the Notes to Consolidated Financial Statements for further discussion.
In February 2008, the FASB issued FSP No. FAS 157-2,Effective Date of FASB Statement No. 157 (“FAS 157-2”), which delays the effective date of SFAS No. 157 for all nonfinancial assets and liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). FAS 157-2 partially defers the effective date of SFAS No. 157 to fiscal years beginning after November 15, 2008 and as a result is effective for the Operating Partnership beginning January 1, 2009. The Operating Partnershipstatements. This does not expect the adoption of this FSP to have a material effect on the consolidated results of operations or financial position.
In October 2008, the FASB issued FSP No. FAS 157-3,Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active (“FAS 157-3”). FAS 157-3 clarifies the application of SFAS No. 157 in a market that is not active and became effective upon issuance, including prior periods for which financial statements have not been issued. The adoption of FAS 157-3 did not have a material effect on the Operating Partnership’s consolidated results of operations or financial position.
In February 2007, See Note 11 for further discussion.
In December 2007, the FASB issued SFAS No. 141(R),Business Combinations.SFAS No. 141(R) will significantly change the accountingdisclosures for business combinations. Under SFAS No. 141(R)each class rather than each major category of assets and liabilities. For fair value measurements using significant other observable inputs (Level 2) or significant unobservable inputs (Level 3), an acquiring entity will becompanies are required to recognize alldisclose the assets acquiredvaluation technique and liabilities assumedthe inputs used in a transaction at the acquisition-datedetermining fair value with limited exceptions. SFAS No. 141(R) will change the accounting treatment for certain specific acquisition related items including: (1) expensing acquisition related costs as incurred; (2) valuing noncontrolling interests at fair value at the acquisition date;each class of assets and (3) expensing restructuring costs associated with an acquired business. SFAS No. 141(R) also includes a substantial number of new disclosure requirements. SFAS No. 141(R) is to be applied prospectively to business combinations for which the acquisition date is on or after January 1, 2009. Due to the current decline in the Operating Partnership’s acquisition activities, the initial adoption of SFAS No. 141(R) isliabilities. This does not expected to have a material effect on the Operating Partnership’s consolidated results of operations or financial position.
In December 2007, the FASB issued SFAS No. 160,Noncontrolling Interests in Consolidated Financial Statements.SFAS No. 160 establishes new accounting See Note 11 for further discussion.
In March 2008, the FASB issued SFAS No. 161,Disclosures about Derivative Instruments and Hedging Activities –
position, financial performance and cash flows. SFAS No. 161 is effective for the Operating Partnership on January 1, 2009. Other than the enhanced disclosure requirements, the adoption of SFAS No. 161 isthis does not expected to have a material effect on the Operating Partnership’s consolidated financial statements.
In May 2008, the FASB issued FSP No. APB 14-1,Accounting See Note 11 for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement) (“APB 14-1”). APB 14-1 requires the issuerfurther discussion.
F-18
|
|
| 2008 | 2007 | 2006 | |||||||
General and Limited Partner OP Units | |||||||||
General and Limited Partner OP Units outstanding at January 1, | 287,974,981 | 313,466,216 | 309,960,589 | ||||||
Issued to General Partner: | |||||||||
Conversion of Series E Preference Units | 36,830 | 80,895 | 104,904 | ||||||
Conversion of Series H Preference Units | 2,750 | 5,463 | 9,554 | ||||||
Conversion of Preference Interests | - | 324,484 | 679,686 | ||||||
Exercise of EQR options | 995,129 | 1,040,765 | 2,647,776 | ||||||
Employee Share Purchase Plan | 195,961 | 189,071 | 213,427 | ||||||
Dividend Reinvestment – DRIP Plan | - | - | 169 | ||||||
Restricted EQR share grants, net | 461,954 | 352,433 | 603,697 | ||||||
Issued to Limited Partners: | |||||||||
Issuances – Acquisitions/consolidations | 19,017 | - | 1,144,326 | ||||||
OP Units Other: | |||||||||
Repurchased and retired | (220,085 | ) | (27,484,346 | ) | (1,897,912 | ) | |||
General and Limited Partner OP Units outstanding at | 289,466,537 | 287,974,981 | 313,466,216 | ||||||
Limited Partner OP Units | |||||||||
Limited Partner OP Units outstanding at January 1, | 18,420,320 | 19,914,583 | 20,424,245 | ||||||
Limited Partner OP Units issued through acquisitions/consolidations | 19,017 | - | 1,144,326 | ||||||
Conversion of Limited Partner OP Units to EQR Common Shares | (1,759,560 | ) | (1,494,263 | ) | (1,653,988 | ) | |||
Limited Partner OP Units Outstanding at December 31, | 16,679,777 | 18,420,320 | 19,914,583 | ||||||
Limited Partner OP Units Ownership Interest in Operating | 5.8 | % | 6.4 | % | 6.4 | % | |||
Limited Partner OP Units Issued: | |||||||||
Consolidations – per unit | $44.64 | - | $43.34 | ||||||
Consolidations – valuation | $0.8 million | - | $49.6 million | ||||||
As of February 5, 2009, an2008:
| 2010 | 2009 | 2008 | ||||||||||
General and Limited Partner Units | ||||||||||||
| General and Limited Partner Units outstanding at January 1, | 294,157,017 | 289,466,537 | 287,974,981 | |||||||||
| Issued to General Partner: | ||||||||||||
| Conversion of Series E Preference Units | 328,363 | 612 | 36,830 | |||||||||
| Conversion of Series H Preference Units | 32,516 | — | 2,750 | |||||||||
| Issuance of OP Units | 6,151,198 | 3,497,300 | — | |||||||||
| Exercise of EQR share options | 2,506,645 | 422,713 | 995,129 | |||||||||
| Employee Share Purchase Plan (ESPP) | 157,363 | 324,394 | 195,961 | |||||||||
| Restricted EQR share grants, net | 235,767 | 298,717 | 461,954 | |||||||||
| Issued to Limited Partners: | ||||||||||||
| LTIP Units, net | 92,892 | 154,616 | — | |||||||||
| OP Units issued through acquisitions/consolidations | 205,648 | 32,061 | 19,017 | |||||||||
| Conversion of Series B Junior Preference Units | — | 7,517 | — | |||||||||
| OP Units Other: | ||||||||||||
| Repurchased and retired | (58,130 | ) | (47,450 | ) | (220,085 | ) | ||||||
General and Limited Partner Units outstanding at December 31, | 303,809,279 | 294,157,017 | 289,466,537 | |||||||||
Limited Partner Units | ||||||||||||
| Limited Partner Units outstanding at January 1, | 14,197,969 | 16,679,777 | 18,420,320 | |||||||||
| Limited Partner LTIP Units, net | 92,892 | 154,616 | — | |||||||||
| Limited Partner OP Units issued through acquisitions/consolidations | 205,648 | 32,061 | 19,017 | |||||||||
| Conversion of Series B Junior Preference Units | — | 7,517 | — | |||||||||
| Conversion of Limited Partner OP Units to EQR Common Shares | (884,472 | ) | (2,676,002 | ) | (1,759,560 | ) | ||||||
Limited Partner Units outstanding at December 31, | 13,612,037 | 14,197,969 | 16,679,777 | |||||||||
| Limited Partner Units Ownership Interest in Operating Partnership | 4.5 | % | 4.8 | % | 5.8 | % | ||||||
| Limited Partner LTIP Units Issued: | ||||||||||||
| Issuance — per unit | — | $ | 0.50 | — | ||||||||
| Issuance — contribution valuation | — | $ | 0.1 million | — | ||||||||
| Limited Partner OP Units Issued: | ||||||||||||
| Acquisitions/consolidations — per unit | $ | 40.09 | $ | 26.50 | $ | 44.64 | ||||||
| Acquisitions/consolidations — valuation | $ | 8.2 million | $ | 0.8 million | $ | 0.8 million | ||||||
| Conversion of Series B Junior Preference Units — per unit | — | $ | 24.50 | — | ||||||||
| Conversion of Series B Junior Preference Units — valuation | — | $ | 0.2 million | — | ||||||||
F-19
On April 27, May 24
December 31, 2008,2010, EQR has remaining authorization to repurchase an additional $467.7$464.6 million of its shares as of December 31, 2008.
2010.
During the year ended December 31, 2007, the Company repurchased 27,484,346 of its Common Shares at an average price of $44.62 per share for total consideration of $1.2 billion. These shares were retired subsequent to the repurchases. Concurrent with these transactions, the Operating Partnership repurchased and retired 27,484,346 OP Units previously issued to EQR. Of the total shares repurchased, 84,046 shares were repurchased from employees at an average price of $53.85 per share (the average of the then current market prices) to cover the minimum statutory tax withholding obligations related to the vesting of employees’ restricted shares. The remaining 27,400,300 shares were repurchased in the open market at an average price of $44.59 per share. As of December 31, 2007, transactions to repurchase 125,000 of the 27,484,346 Common Shares had not yet settled. As of December 31, 2007, the Company has reduced the number of Common Shares issued and outstanding by this amount and recorded a liability of $4.6 million included in other liabilities on the consolidated balance sheets.
During the year ended December 31, 2006, the Company repurchased 1,897,912 of its Common Shares in the open market at an average price of $43.85 per share. The Company paid approximately $83.2 million for these shares, which were retired subsequent to the repurchases. Concurrent with these transactions, the Operating Partnership repurchased and retired 1,897,912 OP Units previously issued to EQR.
The limited partnersLimited Partners of the Operating Partnership as of December 31, 20082010 include various individuals and entities that contributed their properties to the Operating Partnership in exchange for OP Units, as well as the equity positions of the holders of LTIP Units. Subject to certain restrictions,exceptions (including the “book-up” requirements of LTIP Units), Limited Partners may exchange their OP Units with EQR for EQR Common Shares on a one-for-one basis. The carrying value of the Limited Partner Units (including redeemable interests) is allocated based on the number of Limited Partner Units in total in proportion to the number of Limited Partner Units in total plus the number of General Partner Units. Net income is allocated to the Limited Partner Units based on the weighted average ownership percentage during the period.
F-20
| 2010 | 2009 | 2008 | ||||||||||
| Balance at January 1, | $ | 258,280 | $ | 264,394 | $ | 345,165 | ||||||
| Change in market value | 129,918 | 14,544 | (65,524 | ) | ||||||||
| Change in carrying value | (4,658 | ) | (20,658 | ) | (15,247 | ) | ||||||
| Balance at December 31, | $ | 383,540 | $ | 258,280 | $ | 264,394 | ||||||
Preference Units: 7.00% Series E Cumulative Convertible Preference Units; liquidation value $25 per unit; 329,016 and 362,116 units issued and outstanding at December 31, 2008 and December 31, 2007, respectively 7.00% Series H Cumulative Convertible Preference Units; liquidation value $25 per unit; 22,459 and 24,359 units issued and outstanding at December 31, 2008 and December 31, 2007, respectively 8.29% Series K Cumulative Redeemable Preference Units; liquidation value $50 per unit; 1,000,000 units issued and outstanding at December 31, 2008 and December 31, 2007 6.48% Series N Cumulative Redeemable Preference Units; liquidation value $250 per unit; 600,000 units issued and outstanding at December 31, 2008 and December 31, 2007 (4) Amounts in thousands Redemption
Date (1) (2) Conversion
Rate (2) Annual
Dividend per
Unit (3) December 31,
2008 December 31,
2007 11/1/98 1.1128 $1.75 $ 8,225 $ 9,053 6/30/98 1.4480 $1.75 561 609 12/10/26 N/A $4.145 50,000 50,000 6/19/08 N/A $16.20 150,000 150,000 $ 208,786 $ 209,662
| Annual | Amounts in thousands | |||||||||||||||||||
| Redemption | Conversion | Dividend per | December 31, | December 31, | ||||||||||||||||
| Date (1) (2) | Rate (2) | Unit (3) | 2010 | 2009 | ||||||||||||||||
| Preference Units: | ||||||||||||||||||||
| 7.00% Series E Cumulative Convertible Preference Units; liquidation value $25 per unit; 0 and 328,466 units issued and outstanding at December 31, 2010 and December 31, 2009, respectively | 11/1/98 | 1.1128 | $ | 1.75 | $ | — | $ | 8,212 | ||||||||||||
| 7.00% Series H Cumulative Convertible Preference Units; liquidation value $25 per unit 0 and 22,459 units issued and outstanding at December 31, 2010 and December 31, 2009, respectively | 6/30/98 | 1.4480 | $ | 1.75 | — | 561 | ||||||||||||||
| 8.29% Series K Cumulative Redeemable Preference Units; liquidation value $50 per unit; 1,000,000 units issued and outstanding at December 31, 2010 and December 31, 2009 | 12/10/26 | N/A | $ | 4.145 | 50,000 | 50,000 | ||||||||||||||
| 6.48% Series N Cumulative Redeemable Preference Units; liquidation value $250 per unit; 600,000 units issued and outstanding at December 31, 2010 and December 31, 2009 (4) | 6/19/08 | N/A | $ | 16.20 | 150,000 | 150,000 | ||||||||||||||
| $ | 200,000 | $ | 208,773 | |||||||||||||||||
| ||
| (1) | On or after the redemption date, redeemable preference units (Series K and N) may be redeemed for cash at the option of the Operating Partnership, in whole or in part, at a redemption price equal to the liquidation price per unit, plus accrued and unpaid distributions, if any, in conjunction with the concurrent redemption of the corresponding EQR Preferred Shares. |
| (2) | On or after the redemption date, convertible preference units (Series E |
F-21
| ||
| 2010, the Operating Partnership redeemed its Series E and Series H Cumulative Convertible Preference Units for cash consideration of $0.8 million and 355,539 OP Units. | ||
| (3) | Dividends on all series of Preference Units are payable quarterly at various pay dates. The dividend listed for Series N is a Preference Unit rate and the equivalent depositary unit annual dividend is $1.62 per unit. |
| (4) | The Series N Preference Units have a corresponding depositary unit that consists of ten times the number of units and one-tenth the liquidation value and dividend per unit. |
and other liabilities by $0.2 million and increased Noncontrolling Interests — Partially Owned Properties by $0.2 million.
During the year ended December 31, 2007,valued at $0.8 million. In conjunction with these transactions, the Operating Partnership issued an irrevocable notice to redeem for cash all 230,000 units of its 7.625% Series J Preferencereduced paid in capital (included in general partner’s capital) by $1.5 million and Noncontrolling Interests with a liquidation value of $11.5— Partially Owned Properties by $11.7 million. This notice triggered the holder’s accelerated conversion right, which they exercised. As a result, the 230,000 units were converted into 324,484 EQR Common Shares.
During the year ended December 31, 2006, the Operating Partnership redeemed for cash all of its 7.875% Series G Preference Interests with a liquidation value of $25.5 million. The Operating Partnership recorded approximately $0.7 million as a premium on redemption of Preference Interests in the accompanying consolidated statements of operations.
During the year ended December 31, 2006, the Operating Partnership issued irrevocable notices to redeem for cash all 460,000 units of its 7.625% Series H and I Preference Interests with a liquidation value of $23.0 million.
This notice triggered the respective holders’ accelerated conversion rights, which they exercised. As a result, the 460,000 units were converted into 679,686 EQR Common Shares.
The following table presents the Operating Partnership’s issued and outstanding Junior Convertible Preference Units (the “Junior Preference Units”) as of December 31, 2008 and 2007:
| Amounts in thousands | ||||||||||||
| Redemption Date (2) | Conversion Rate (2) | Annual Dividend per Unit (1) | December 31, 2008 | December 31, 2007 | ||||||||
Junior Preference Units: | ||||||||||||
Series B Junior Convertible Preference Units; liquidation | 7/29/09 | 1.020408 | $2.00 | $ | 184 | $ | 184 | |||||
| $ | 184 | $ | 184 | |||||||||
|
|
|
|
|
|
The following table summarizes the carrying amounts for investment in real estate (at cost) as of December 31, 2008 and 2007 (amounts in thousands):
| 2008 | 2007 | |||||||
Land | $ | 3,671,299 | $ | 3,607,305 | ||||
Depreciable property: | ||||||||
Buildings and improvements | 12,836,310 | 12,665,706 | ||||||
Furniture, fixtures and equipment | 1,072,284 | 890,975 | ||||||
Projects under development: | ||||||||
Land | 175,355 | 225,960 | ||||||
Construction-in-progress | 680,118 | 602,570 | ||||||
Land held for development: | ||||||||
Land | 205,757 | 296,129 | ||||||
Construction-in-progress | 49,116 | 44,705 | ||||||
Investment in real estate | 18,690,239 | 18,333,350 | ||||||
Accumulated depreciation | (3,561,300 | ) | (3,170,125 | ) | ||||
Investment in real estate, net | $ | 15,128,939 | $ | 15,163,225 | ||||
| Properties | Units | Purchase Price | |||||
Rental Properties | 7 | 2,141 | $ | 380,683 | |||
Uncompleted Developments | - | - | 31,705 | ||||
Military Housing (Fee Managed) (1) | 1 | 978 | - | ||||
Total | 8 | 3,119 | $ | 412,388 | |||
|
|
The Operating Partnership also acquired all of its partners’ interests in one consolidated partially owned property containingconsisting of 144 apartment units for $5.9 million and three consolidated partially owned land parcels for $1.6 million. In addition, the Operating Partnership made an additional payment of $1.3 million related to an April 2006 acquisition of a partner’s interest in a now wholly-ownedwholly owned property, partially funded through the issuance of 19,017 OP Units valued at $0.8 million.
| 2010 | 2009 | |||||||
| Land | $ | 4,110,275 | $ | 3,650,324 | ||||
| Depreciable property: | ||||||||
| Buildings and improvements | 13,995,121 | 12,781,543 | ||||||
| Furniture, fixtures and equipment | 1,231,391 | 1,111,978 | ||||||
| Projects under development: | ||||||||
| Land | 28,260 | 106,716 | ||||||
| Construction-in-progress | 102,077 | 562,263 | ||||||
| Land held for development: | ||||||||
| Land | 198,465 | 181,430 | ||||||
| Construction-in-progress | 36,782 | 70,890 | ||||||
| Investment in real estate | 19,702,371 | 18,465,144 | ||||||
| Accumulated depreciation | (4,337,357 | ) | (3,877,564 | ) | ||||
| Investment in real estate, net | $ | 15,365,014 | $ | 14,587,580 | ||||
F-22
| Properties | Units | Purchase Price | |||||
Rental Properties | 36 | 8,167 | $ | 1,686,435 | |||
Land Parcels (eight) | - | - | 212,841 | ||||
Total | 36 | 8,167 | $ | 1,899,276 | |||
| Purchase | ||||||||||||
| Properties | Apartment Units | Price | ||||||||||
| Rental Properties | 16 | 4,445 | $ | 1,485,701 | ||||||||
| Land Parcels (six) | — | — | 68,869 | |||||||||
| Total | 16 | 4,445 | $ | 1,554,570 | ||||||||
| Purchase | ||||||||||||
| Properties | Apartment Units | Price | ||||||||||
| Rental Properties | 2 | 566 | $ | 145,036 | ||||||||
| Land Parcel (one) | — | — | 11,500 | |||||||||
| Total | 2 | 566 | $ | 156,536 | ||||||||
| Properties | Units | Sales Price | |||||
Rental Properties: | |||||||
Wholly Owned | 38 | 9,457 | $ | 862,099 | |||
Partially Owned – Unconsolidated (1) | 3 | 670 | 34,600 | ||||
Condominium Conversion Properties | 4 | 130 | 26,101 | ||||
Land Parcel (one) | - | - | 3,300 | ||||
Total | 45 | 10,257 | $ | 926,100 | |||
| Properties | Apartment Units | Sales Price | ||||||||||
| Rental Properties: | ||||||||||||
| Consolidated | 35 | 7,171 | $ | 718,352 | ||||||||
| Unconsolidated (1) | 27 | 6,275 | 417,779 | |||||||||
| Land Parcel (one) | — | — | 4,000 | |||||||||
| Condominium Conversion Properties | 1 | 2 | 360 | |||||||||
| Total | 63 | 13,448 | $ | 1,140,491 | ||||||||
| (1) |
| The Operating Partnership owned a 25% interest in these unconsolidated rental properties. Sales price listed is the gross sales price. |
| Properties | Units | Sales Price | |||||
Rental Properties: | |||||||
Wholly Owned | 72 | 21,163 | $ | 1,918,673 | |||
Partially Owned – Unconsolidated (1) | 1 | 400 | 21,000 | ||||
Condominium Conversion Properties | 5 | 617 | 164,226 | ||||
Land Parcels (two) | - | - | 49,959 | ||||
Total | 78 | 22,180 | $ | 2,153,858 | |||
| Properties | Apartment Units | Sales Price | ||||||||||
| Rental Properties: | ||||||||||||
| Consolidated | 54 | 11,055 | $ | 905,219 | ||||||||
| Unconsolidated (1) | 6 | 1,434 | 96,018 | |||||||||
| Condominium Conversion Properties | 1 | 62 | 12,021 | |||||||||
| Total | 61 | 12,551 | $ | 1,013,258 | ||||||||
| (1) |
| The Operating Partnership owned a 25% interest in |
F-23
|
|
As of February 5, 2009,Real Estate
As of February 5, 2009,the following (purchase price in thousands):
| Properties | Apartment Units | Purchase Price | ||||||||||
| Rental Properties | 2 | 683 | $ | 125,250 | ||||||||
| Total | 2 | 683 | $ | 125,250 | ||||||||
thousands):
| Properties | Units | Sales Price | |||||
Rental Properties: | |||||||
Wholly Owned | 9 | 1,232 | $ | 128,600 | |||
Partially Owned – Unconsolidated | 1 | 216 | 21,700 | ||||
Total | 10 | 1,448 | $ | 150,300 | |||
| Properties | Apartment Units | Sales Price | ||||||||||
| Rental Properties | 15 | 4,152 | $ | 378,650 | ||||||||
| Total | 15 | 4,152 | $ | 378,650 | ||||||||
|
|
F-24
| Consolidated | Unconsolidated | |||||||||||||||||
| Development Projects | Institutional Joint Ventures (5) | |||||||||||||||||
| Held for and/or Under Development | Completed, Not Stabilized (4) | Completed and Stabilized | Other | Total | ||||||||||||||
Total projects (1) | - | 2 | 5 | 21 | 28 | 41 | ||||||||||||
Total units (1) | - | 410 | 1,405 | 3,942 | 5,757 | 9,776 | ||||||||||||
Debt – Secured (2): | ||||||||||||||||||
EQR Ownership (3) | $ | 517,543 | $ | 76,708 | $ | 141,206 | $ | 287,986 | $ | 1,023,443 | $ | 121,200 | ||||||
Minority Ownership | - | - | - | 14,228 | 14,228 | 363,600 | ||||||||||||
Total (at 100%) | $ | 517,543 | $ | 76,708 | $ | 141,206 | $ | 302,214 | $ | 1,037,671 | $ | 484,800 | ||||||
| Consolidated | ||||||||||||||||||||
| Development Projects (VIEs) | ||||||||||||||||||||
| Held for | Completed, | Completed | ||||||||||||||||||
| and/or Under | Not | and | ||||||||||||||||||
| Development | Stabilized (4) | Stabilized | Other | Total | ||||||||||||||||
| Total projects (1) | — | 1 | 4 | 19 | 24 | |||||||||||||||
| Total apartment units (1) | — | 490 | 1,302 | 3,440 | 5,232 | |||||||||||||||
| Balance sheet information at 12/31/10 (at 100%): | ||||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Investment in real estate | $ | 44,006 | $ | 257,747 | $ | 390,465 | $ | 438,329 | $ | 1,130,547 | ||||||||||
| Accumulated depreciation | — | — | (18,471 | ) | (124,347 | ) | (142,818 | ) | ||||||||||||
| Investment in real estate, net | 44,006 | 257,747 | 371,994 | 313,982 | 987,729 | |||||||||||||||
| Cash and cash equivalents | 877 | 1,288 | 7,384 | 11,581 | 21,130 | |||||||||||||||
| Deposits — restricted | 1,115 | 922 | 3,205 | 8 | 5,250 | |||||||||||||||
| Escrow deposits — mortgage | — | — | 222 | 2,321 | 2,543 | |||||||||||||||
| Deferred financing costs, net | — | 2,800 | 412 | 505 | 3,717 | |||||||||||||||
| Other assets | 339 | 268 | 308 | 143 | 1,058 | |||||||||||||||
| Total assets | $ | 46,337 | $ | 263,025 | $ | 383,525 | $ | 328,540 | $ | 1,021,427 | ||||||||||
| LIABILITIES AND CAPITAL | ||||||||||||||||||||
| Mortgage notes payable | $ | 18,342 | $ | 141,741 | $ | 275,348 | $ | 314,535 | $ | 749,966 | ||||||||||
| Accounts payable & accrued expenses | 346 | 2,215 | 1,070 | 1,259 | 4,890 | |||||||||||||||
| Accrued interest payable | 1,294 | 521 | 605 | 1,531 | 3,951 | |||||||||||||||
| Other liabilities | 1,617 | 1,568 | 910 | 1,001 | 5,096 | |||||||||||||||
| Security deposits | — | 1,021 | 955 | 1,392 | 3,368 | |||||||||||||||
| Total liabilities | 21,599 | 147,066 | 278,888 | 319,718 | 767,271 | |||||||||||||||
| Noncontrolling Interests — Partially Owned Properties | 3,418 | 5,025 | 4,278 | (4,730 | ) | 7,991 | ||||||||||||||
| Accumulated other comprehensive (loss) | — | (1,322 | ) | — | — | (1,322 | ) | |||||||||||||
| General and Limited Partners’ Capital | 21,320 | 112,256 | 100,359 | 13,552 | 247,487 | |||||||||||||||
| Total capital | 24,738 | 115,959 | 104,637 | 8,822 | 254,156 | |||||||||||||||
| Total liabilities and capital | $ | 46,337 | $ | 263,025 | $ | 383,525 | $ | 328,540 | $ | 1,021,427 | ||||||||||
| Debt — Secured (2): | ||||||||||||||||||||
| EQR Ownership (3) | $ | 18,342 | $ | 141,741 | $ | 275,348 | $ | 252,857 | $ | 688,288 | ||||||||||
| Noncontrolling Ownership | — | — | — | 61,678 | 61,678 | |||||||||||||||
| Total (at 100%) | $ | 18,342 | $ | 141,741 | $ | 275,348 | $ | 314,535 | $ | 749,966 | ||||||||||
F-25
| Consolidated | ||||||||||||||||||||
| Development Projects (VIEs) | ||||||||||||||||||||
| Held for | ||||||||||||||||||||
| and/or Under | Completed, | Completed | ||||||||||||||||||
| Development | Not Stabilized (4) | and Stabilized | Other | Total | ||||||||||||||||
| Operating information for the year ended 12/31/10 (at 100%): | ||||||||||||||||||||
| Operating revenue | $ | 4 | $ | 6,344 | $ | 25,607 | $ | 55,928 | $ | 87,883 | ||||||||||
| Operating expenses | 758 | 3,458 | 9,370 | 19,906 | 33,492 | |||||||||||||||
| Net operating (loss) income | (754 | ) | 2,886 | 16,237 | 36,022 | 54,391 | ||||||||||||||
| Depreciation | — | — | 12,239 | 14,882 | 27,121 | |||||||||||||||
| General and administrative/other | 51 | — | 127 | 92 | 270 | |||||||||||||||
| Impairment | 8,959 | — | — | — | 8,959 | |||||||||||||||
| Operating (loss) income | (9,764 | ) | 2,886 | 3,871 | 21,048 | 18,041 | ||||||||||||||
| Interest and other income | 23 | — | 10 | 30 | 63 | |||||||||||||||
| Other expenses | (493 | ) | — | — | (548 | ) | (1,041 | ) | ||||||||||||
| Interest: | ||||||||||||||||||||
| Expense incurred, net | (925 | ) | (2,872 | ) | (6,596 | ) | (20,576 | ) | (30,969 | ) | ||||||||||
| Amortization of deferred financing costs | — | — | (753 | ) | (238 | ) | (991 | ) | ||||||||||||
| (Loss) income before income and other taxes and discontinued operations | (11,159 | ) | 14 | (3,468 | ) | (284 | ) | (14,897 | ) | |||||||||||
| Income and other tax (expense) benefit | (31 | ) | — | — | (5 | ) | (36 | ) | ||||||||||||
| Net loss on sales of land parcels | (234 | ) | — | — | — | (234 | ) | |||||||||||||
| Net gain on sales of discontinued operations | 711 | — | — | 34,842 | 35,553 | |||||||||||||||
| Net (loss) income | $ | (10,713 | ) | $ | 14 | $ | (3,468 | ) | $ | 34,553 | $ | 20,386 | ||||||||
| (1) |
| Project and apartment unit counts exclude all uncompleted development projects until those projects are substantially completed. |
(2) | All debt is non-recourse to the Operating Partnership with the exception of |
(3) | Represents the Operating Partnership’s current economic ownership interest. |
(4) | Projects included here are substantially complete. However, they may still require additional exterior and interior work for all apartment units to be available for leasing. |
|
|
F-26
|
|
| December 31, 2008 | December 31, 2007 | |||||
Tax–deferred (1031) exchange proceeds | $ | - | $ | 63,795 | ||
Earnest money on pending acquisitions | 1,200 | 3,050 | ||||
Restricted deposits on debt (1) | 96,229 | 133,491 | ||||
Resident security and utility deposits | 41,478 | 39,889 | ||||
Other | 13,465 | 13,051 | ||||
Totals | $ | 152,372 | $ | 253,276 | ||
| December 31, | December 31, | |||||||
| 2010 | 2009 | |||||||
| Tax—deferred (1031) exchange proceeds | $ | 103,887 | $ | 244,257 | ||||
| Earnest money on pending acquisitions | 9,264 | 6,000 | ||||||
| Restricted deposits on debt (1) | 18,966 | 49,565 | ||||||
| Resident security and utility deposits | 40,745 | 39,361 | ||||||
| Other | 8,125 | 12,825 | ||||||
| Totals | $ | 180,987 | $ | 352,008 | ||||
| (1) |
| Primarily represents amounts held in escrow by the lender and released as draw requests are made on fully funded development mortgage loans. |
|
|
Repaid $435.4 million of mortgage loans;
Assumed $24.9 million of mortgage debt on an uncompleted development property in connection with its acquisition;
| • | Repaid $652.1 million of mortgage loans; | ||
| • | Obtained $173.6 million of new mortgage loan proceeds; | ||
| • | Assumed $359.1 million of mortgage debt on seven acquired properties; | ||
| • | Was released from $40.0 million of mortgage debt assumed by the purchaser on two disposed properties; and | ||
| • | Assumed $112.6 million of mortgage debt on seven previously unconsolidated properties and repaid the net $70.0 million mortgage loan (net of $42.6 million of cash collateral held by the lender) concurrent with closing using proceeds drawn from the Operating Partnership’s line of credit. |
Obtained $500.0 million of mortgage loan proceeds through the issuance of an 11.5 year cross-collateralized loan with a fixed stated interest rate for 10.5 years at 5.19% secured by 13 properties;
Obtained $550.0 million of mortgage loan proceeds through the issuance of an 11.5 year cross-collateralized loan with a fixed stated interest rate for 10.5 years at approximately 6% secured by 15 properties;
Obtained $543.0 million of mortgage loan proceeds through the issuance of an 8 year cross-collateralized loan with a fixed stated interest rate for 7 years at approximately 6% secured by 18 properties; and
Obtained an additional $248.5 million of new mortgage loans primarily on development properties.
The Operating Partnership recorded approximately $81,000$2.5 million and $131,000$1.0 million of prepayment penalties and write-offs of unamortized deferred financing costs, respectively, as additional interest related to debt extinguishment of mortgages during the year ended December 31, 2008.
2010 as additional interest expense related to debt extinguishment of mortgages.
Year | Total | ||
2009 | $ | 635,818 | |
2010 | 454,701 | ||
2011 | 672,526 | ||
2012 | 163,276 | ||
2013 | 167,347 | ||
Thereafter | 2,943,262 | ||
Total | $ | 5,036,930 | |
| Year | Total | ||||
| 2011 | $ | 597,100 | |||
| 2012 | 342,088 | ||||
| 2013 | 171,138 | ||||
| 2014 | 86,041 | ||||
| 2015 | 59,013 | ||||
| Thereafter | 3,507,516 | ||||
| Total | $ | 4,762,896 | |||
F-27
Repaid $548.0 million of mortgage loans;
Assumed $226.2 million of mortgage debt on certain properties in connection with their acquisitions;
| • | Repaid $956.8 million of mortgage loans; | ||
| • | Obtained $500.0 million of mortgage loan proceeds through the issuance of an 11-year cross-collateralized loan with an all-in fixed interest rate for 10 years at approximately 5.6% secured by 13 properties; | ||
| • | Obtained $40.0 million of new mortgage loans to accommodate the delayed sale of two properties that closed in January 2010; | ||
| • | Obtained $198.8 million of new mortgage loans on development properties; | ||
| • | Recognized a gain on early debt extinguishment of $2.4 million and wrote-off approximately $1.1 million of unamortized deferred financing costs; and | ||
| • | Was released from $17.3 million of mortgage debt assumed by the purchaser on two disposed properties. |
Obtained $827.8 million of new mortgage loans on certain properties; and
Was released from $76.7 million of mortgage debt assumed by the purchaser on disposed properties.
The Operating Partnership recorded approximately $3.3 million and $3.6 million of prepayment penalties and write-offs of unamortized deferred financing costs, respectively, as additional interest related to debt extinguishment of mortgages during the year ended December 31, 2007.
As of December 31, 2007,2009, scheduled maturities for the Operating Partnership’s outstanding mortgage indebtedness were at various dates through September 1, 2045.2048. At December 31, 2007,2009, the interest rate range on the Operating Partnership’s mortgage debt was 3.00%0.20% to 12.465%. During the year ended December 31, 2007,2009, the
weighted average interest rate on the Operating Partnership’s mortgage debt was 5.74%4.89%.
|
|
December 31, 2008 (Amounts are in thousands) | Net Principal Balance | Interest Rate Ranges | Weighted Average Interest Rate | Maturity Date Ranges | |||||
Fixed Rate Public/Private Notes (1) | $ | 4,701,372 | 3.85% - 7.57% | 5.69% | 2009 - 2026 | ||||
Floating Rate Public/Private Notes (1) | 651,554 | (1) | 3.89% | 2009 - 2010 | |||||
Fixed Rate Tax-Exempt Bonds | 75,790 | 5.20% | 5.07% | 2029 | |||||
Floating Rate Tax-Exempt Bonds | 35,600 | (2) | 1.05% | 2028 | |||||
Totals | $ | 5,464,316 | |||||||
December 31, 2007 (Amounts are in thousands) | Net Principal Balance | Interest Rate Ranges | Weighted Average Interest Rate | Maturity Date Ranges | |||||
Fixed Rate Public/Private Notes (1) | $ | 5,002,664 | 3.85% - 7.57% | 5.65% | 2008 - 2026 | ||||
Floating Rate Public/Private Notes (1) | 649,708 | (1) | 6.15% | 2009 - 2010 | |||||
Fixed Rate Tax-Exempt Bonds | 111,390 | 4.75% - 5.20% | 5.05% | 2028 - 2029 | |||||
Totals | $ | 5,763,762 | |||||||
| Net | Interest | Weighted | Maturity | |||||||
| December 31, 2010 | Principal | Rate | Average | Date | ||||||
| (Amounts are in thousands) | Balance | Ranges | Interest Rate | Ranges | ||||||
| Fixed Rate Public/Private Notes (1) | $ | 4,375,860 | 3.85% - 7.57% | 5.78% | 2011 - 2026 | |||||
| Floating Rate Public/Private Notes (1) | 809,320 | (1) | 1.72% | 2011 - 2013 | ||||||
| Totals | $ | 5,185,180 | ||||||||
| Net | Interest | Weighted | Maturity | |||||||
| December 31, 2009 | Principal | Rate | Average | Date | ||||||
| (Amounts are in thousands) | Balance | Ranges | Interest Rate | Ranges | ||||||
| Fixed Rate Public/Private Notes (1) | $ | 3,771,700 | 3.85% - 7.57% | 5.93% | 2011 - 2026 | |||||
| Floating Rate Public/Private Notes (1) | 801,824 | (1) | 1.37% | 2010 - 2013 | ||||||
| Floating Rate Tax-Exempt Bonds | 35,600 | (2) | 0.37% | 2028 | ||||||
| Totals | $ | 4,609,124 | ||||||||
| (1) |
| At December 31, |
(2) | The floating interest rate is based on the 7-Day Securities Industry and Financial Markets Association (“SIFMA”) rate, which is the tax-exempt index equivalent of LIBOR. |
As of February 5, 2009, an2009.
Per the terms of ERPOP’s partnership agreement, EQR contributes the net proceeds of all equity offerings to the capital of the Operating Partnership in exchange for additional OP Units (on a one-for-one Common Share per OP Unit basis) or preference units (on a one-for-one preferred share per preference unit basis).
Repurchased $72.6
Repurchased $101.4 million of its 3.85% convertible fixed rate public notes due August 15, 2026 at a discount to par of approximately 17.7% and recognized debt extinguishment gains of $18.0 million and wrote-off approximately $0.8 million of unamortized deferred financing costs; and
Repaid $130.0 million of fixed rate private notes at maturity.
During the year ended December 31, 2007,2009, the Operating Partnership:
Issued $350.0 million of five-year 5.50% fixed rate public notes, receiving net proceeds of $346.1 million;
Issued $650.0 million of ten-year 5.75% fixed rate public notes, receiving net proceeds of $640.6 million;
Obtained a three-year $500.0 million floating rate term loan (see below);
Repaid $150.0 million of fixed-rate public notes at maturity; andF-28
Repaid $4.3 million of other unsecured notes.
| • | Repurchased at par $105.2 million of its 4.75% fixed rate public notes due June 15, 2009 pursuant to a cash tender offer announced on January 16, 2009 and wrote-off approximately $79,000 of unamortized deferred financing costs and approximately $46,000 of unamortized discounts on notes payable; | ||
| • | Repaid the remaining $122.2 million of its 4.75% fixed rate public notes at maturity; | ||
| • | Repurchased at par $185.2 million of its 6.95% fixed rate public notes due March 2, 2011 pursuant to a cash tender offer announced on January 16, 2009 and wrote-off approximately $0.4 million of unamortized deferred financing costs and approximately $1.0 million of unamortized discounts on notes payable; | ||
| • | Repurchased $21.7 million of its 6.95% fixed rate public notes due March 2, 2011 at a price of 106% of par pursuant to a cash tender offer announced on December 2, 2009, recognized a loss on early debt extinguishment of $1.3 million and wrote-off approximately $0.2 million of unamortized net premiums on notes payable; | ||
| • | Repurchased $146.1 million of its 6.625% fixed rate public notes due March 15, 2012 at a price of 108% of par pursuant to a cash tender offer announced on December 2, 2009, recognized a loss on early debt extinguishment of $11.7 million and wrote-off approximately $0.3 million of unamortized deferred financing costs and approximately $0.2 million of unamortized net discounts on notes payable; | ||
| • | Repurchased $127.9 million of its 5.50% fixed rate public notes due October 1, 2012 at a price of 107% of par pursuant to a cash tender offer announced on December 2, 2009, recognized a loss on early debt extinguishment of $9.0 million and wrote-off approximately $0.5 million of unamortized deferred financing costs and approximately $0.4 million of unamortized discounts on notes payable; | ||
| • | Repurchased $75.8 million of its 5.20% fixed rate tax-exempt notes and wrote-off approximately $0.7 million of unamortized deferred financing costs; | ||
| • | Repurchased $17.5 million of its 3.85% convertible fixed rate public notes due August 15, 2026 at a price of 88.4% of par and recognized a gain on early debt extinguishment of $2.0 million and wrote-off approximately $0.1 million of unamortized deferred financing costs and approximately $0.8 million of unamortized discounts on notes payable; and | ||
| • | Repurchased at par $48.5 million of its 3.85% convertible fixed rate public notes due August 15, 2026 pursuant to a cash tender offer announced on December 2, 2009 and wrote-off approximately $0.3 million of unamortized deferred financing costs and approximately $1.5 million of unamortized discounts on notes payable. |
See Note 2 for more information on the change in the recognition of interest expense for the exchangeable senior notes.
F-29
Year | Total (1) | ||
| 2009 | $ | 227,580 | |
| 2010 (2) | 498,782 | ||
| 2011 (3) | 841,816 | ||
| 2012 | 748,578 | ||
| 2013 | 398,986 | ||
| Thereafter | 2,748,574 | ||
| Total | $ | 5,464,316 | |
| Year | Total (1) | |||||
| 2011 (2) (3) | $ | 1,068,891 | ||||
| 2012 | 474,221 | |||||
| 2013 | 407,849 | |||||
| 2014 | 498,576 | |||||
| 2015 | 298,700 | |||||
| Thereafter | 2,436,943 | |||||
| Total | $ | 5,185,180 | ||||
| (1) |
| Principal payments on unsecured notes include amortization of any discounts or premiums related to the notes. Premiums and discounts are amortized over the life of the unsecured notes. |
(2) | Includes the Operating Partnership’s $500.0 million term loan facility, which |
(3) | Includes |
|
|
During the year ended December 31, 2008, one of the providers of the Operating Partnership’s unsecured revolving credit facility declared bankruptcy. Under the existing terms of the credit facility, the provider’s share is up to $75.0 million of potential borrowings. As a result, the Operating Partnership’s borrowing capacity under the unsecured revolving credit facility has in essence been permanently reduced to $1.425 billion of potential borrowings. The obligation to fund by all of the other providers has not changed.
On April 1, 2005, the Operating Partnership obtained a three-year $1.0 billion unsecured revolving credit facility maturing on May 29, 2008. Advances under the credit facility bore interest at variable rates based upon LIBOR at various interest periods plus a spread dependent upon the Operating Partnership’s credit rating or based on bids received from the lending group. EQR guaranteed the Operating Partnership’s credit facility up to the maximum amount and for the full term of the facility. This credit facility was repaid in full and terminated on February 28, 2007. The Operating Partnership recorded $0.4 million of write-offs of unamortized deferred financing costs as additional interest in connection with this termination.
On May 7, 2007, the Operating Partnership obtained a one-year $500.0 million unsecured revolving credit facility maturing on May 5, 2008. Advances under this facility bore interest at variable rates based on LIBOR at various interest periods plus a spread dependent upon the Operating Partnership’s credit rating. EQR guaranteed this credit facility up to the maximum amount and for its full term. This credit facility was repaid in full and terminated on June 4, 2007.
|
|
procedures including the use of derivatives to hedge interest rate risk on debt instruments.
F-30
| Fair Value Hedges (1) | Development Cash Flow Hedges (2) | |||||||
Current Notional Balance | $ | 385,693 | $ | 262,912 | ||||
Lowest Possible Notional | $ | 385,693 | $ | 48,126 | ||||
Highest Possible Notional | $ | 387,694 | $ | 375,008 | ||||
Lowest Interest Rate | 3.245 | % | 4.059 | % | ||||
Highest Interest Rate | 4.800 | % | 6.000 | % | ||||
Earliest Maturity Date | 2009 | 2009 | ||||||
Latest Maturity Date | 2012 | 2011 | ||||||
Estimated Asset (Liability) Fair Value | $ | 6,802 | $ | (6,821 | ) | |||
| Forward | Development | |||||||||||
| Fair Value | Starting | Cash Flow | ||||||||||
| Hedges (1) | Swaps (2) | Hedges (3) | ||||||||||
| Current Notional Balance | $ | 315,693 | $ | 950,000 | $ | 87,422 | ||||||
| Lowest Possible Notional | $ | 315,693 | $ | 950,000 | $ | 3,020 | ||||||
| Highest Possible Notional | $ | 317,694 | $ | 950,000 | $ | 91,343 | ||||||
| Lowest Interest Rate | 2.009 | % | 3.478 | % | 4.059 | % | ||||||
| Highest Interest Rate | 4.800 | % | 4.695 | % | 4.059 | % | ||||||
| Earliest Maturity Date | 2012 | 2021 | 2011 | |||||||||
| Latest Maturity Date | 2013 | 2023 | 2011 | |||||||||
| (1) |
| Fair Value Hedges |
(2) | Forward Starting Swaps — Designed to partially fix the interest rate in advance of a planned future debt issuance. These swaps have mandatory counterparty terminations from 2012 through 2014, and $350.0 million, $400.0 million and $200.0 million are designated for 2011, 2012 and 2013 maturities, respectively. | |
| (3) | Development Cash Flow Hedges |
On
| Asset Derivatives | Liability Derivatives | |||||||||||
| Balance Sheet | Balance Sheet | |||||||||||
| December 31, 2010 | Location | Fair Value | Location | Fair Value | ||||||||
| Derivatives designated as hedging instruments: | ||||||||||||
| Interest Rate Contracts: | ||||||||||||
| Fair Value Hedges | Other assets | $ | 12,521 | Other liabilities | $ | — | ||||||
| Forward Starting Swaps | Other assets | 3,276 | Other liabilities | (37,756 | ) | |||||||
| Development Cash Flow Hedges | Other assets | — | Other liabilities | (1,322 | ) | |||||||
| Total | $ | 15,797 | $ | (39,078 | ) | |||||||
| Asset Derivatives | Liability Derivatives | |||||||||||
| Balance Sheet | Balance Sheet | |||||||||||
| December 31, 2009 | Location | Fair Value | Location | Fair Value | ||||||||
| Derivatives designated as hedging instruments: | ||||||||||||
| Interest Rate Contracts: | ||||||||||||
| Fair Value Hedges | Other assets | $ | 5,186 | Other liabilities | $ | — | ||||||
| Forward Starting Swaps | Other assets | 23,630 | Other liabilities | — | ||||||||
| Development Cash Flow Hedges | Other assets | — | Other liabilities | (3,577 | ) | |||||||
| Total | $ | 28,816 | $ | (3,577 | ) | |||||||
| Location of Gain/(Loss) | Amount of Gain/(Loss) | Income Statement | Amount of Gain/(Loss) | |||||||||||
| December 31, 2010 | Recognized in Income | Recognized in Income | Location of Hedged | Recognized in Income | ||||||||||
| Type of Fair Value Hedge | on Derivative | on Derivative | Hedged Item | Item Gain/(Loss) | on Hedged Item | |||||||||
| Derivatives designated as hedging instruments: | ||||||||||||||
| Interest Rate Contracts: | ||||||||||||||
| Interest Rate Swaps | Interest expense | $ | 7,335 | Fixed rate debt | Interest expense | $ | (7,335 | ) | ||||||
| Total | $ | 7,335 | $ | (7,335 | ) | |||||||||
F-31
| Location of Gain/(Loss) | Amount of Gain/(Loss) | Income Statement | Amount of Gain/(Loss) | |||||||||||
| December 31, 2009 | Recognized in Income | Recognized in Income | Location of Hedged | Recognized in Income | ||||||||||
| Type of Fair Value Hedge | on Derivative | on Derivative | Hedged Item | Item Gain/(Loss) | on Hedged Item | |||||||||
| Derivatives designated as hedging instruments: | ||||||||||||||
| Interest Rate Contracts: | ||||||||||||||
| Interest Rate Swaps | Interest expense | $ | (1,167 | ) | Fixed rate debt | Interest expense | $ | 1,167 | ||||||
| Total | $ | (1,167 | ) | $ | 1,167 | |||||||||
| Effective Portion | Ineffective Portion | |||||||||||||||
| Amount of | Location of Gain/(Loss) | Amount of Gain/(Loss) | Location of | Amount of Gain/(Loss) | ||||||||||||
| Gain/(Loss) | Reclassified from | Reclassified from | Gain/(Loss) | Reclassified from | ||||||||||||
| December 31, 2010 | Recognized in OCI | Accumulated OCI | Accumulated OCI | Recognized in Income | Accumulated OCI | |||||||||||
| Type of Cash Flow Hedge | on Derivative | into Income | into Income | on Derivative | into Income | |||||||||||
| Derivatives designated as hedging instruments: | ||||||||||||||||
| Interest Rate Contracts: | ||||||||||||||||
| Forward Starting Swaps/Treasury Locks | $ | (68,149 | ) | Interest expense | $ | (3,338 | ) | N/A | $ | — | ||||||
| Development Interest Rate Swaps/Caps | 2,255 | Interest expense | — | N/A | — | |||||||||||
| Total | $ | (65,894 | ) | $ | (3,338 | ) | $ | — | ||||||||
| Effective Portion | Ineffective Portion | |||||||||||||||
| Amount of | Location of Gain/(Loss) | Amount of Gain/(Loss) | Location of | Amount of Gain/(Loss) | ||||||||||||
| Gain/(Loss) | Reclassified from | Reclassified from | Gain/(Loss) | Reclassified from | ||||||||||||
| December 31, 2009 | Recognized in OCI | Accumulated OCI | Accumulated OCI | Recognized in Income | Accumulated OCI | |||||||||||
| Type of Cash Flow Hedge | on Derivative | into Income | into Income | on Derivative | into Income | |||||||||||
| Derivatives designated as hedging instruments: | ||||||||||||||||
| Interest Rate Contracts: | ||||||||||||||||
| Forward Starting Swaps/Treasury Locks | $ | 34,432 | Interest expense | $ | (3,724 | ) | N/A | $ | — | |||||||
| Development Interest Rate Swaps/Caps | 3,244 | Interest expense | — | N/A | — | |||||||||||
| Total | $ | 37,676 | $ | (3,724 | ) | $ | — | |||||||||
2011.
In November 2008, the Operating Partnership paid approximately $13.5 million to terminate six forward starting swaps in conjunction with the issuance of a $543.0 million 8-year mortgage loan. Approximately $13.1 million of the settlement payment has been deferred as a component of accumulated other comprehensive loss and will be recognized as an increase to interest expense over the life of the underlying hedged item.
In June 2007, the Operating Partnership received approximately $2.4 million to terminate five forward starting swaps in conjunction with the issuance of $650.0 million of ten-year unsecured notes. The majority of the $2.4 million has been deferred as a component of accumulated other comprehensive loss and will be recognized as a reduction of interest expense over the life of the unsecured notes.
F-32
Security | Maturity | Amortized Cost | Unrealized Gains | Book/ Fair Value | Interest and Other Income | |||||||||
Held-to-Maturity | ||||||||||||||
FDIC-insured promissory notes | Less than one year | $ | 75,000 | $ | - | $ | 75,000 | $ | 21 | |||||
Total Held-to-Maturity | 75,000 | - | 75,000 | 21 | ||||||||||
Available-for-Sale | ||||||||||||||
FDIC-insured certificates of deposit | Less than one year | 54,000 | 301 | 54,301 | 305 | |||||||||
Other | Between one and five years or N/A | 28,001 | 1,531 | 29,532 | 638 | |||||||||
Total Available-for-Sale | 82,001 | 1,832 | 83,833 | 943 | ||||||||||
Grand Total | $ | 157,001 | $ | 1,832 | $ | 158,833 | $ | 964 | ||||||
SFAS No. 157 establishes a
| Other Assets | ||||||||||||||||||||||
| December 31, 2010 | Amortized | Unrealized | Unrealized | Book/ | Interest and | |||||||||||||||||
| Security | Maturity | Cost | Gains | Losses | Fair Value | Other Income | ||||||||||||||||
| Available-for-Sale | ||||||||||||||||||||||
| FDIC-insured certificates of deposit | Less than one year | $ | — | $ | — | $ | — | $ | — | $ | 61 | |||||||||||
| Other | N/A | 675 | 519 | — | 1,194 | — | ||||||||||||||||
| Total Available-for-Sale and Grand Total | $ | 675 | $ | 519 | $ | — | $ | 1,194 | $ | 61 | ||||||||||||
| Other Assets | ||||||||||||||||||||||
| December 31, 2009 | Amortized | Unrealized | Unrealized | Book/ | Interest and | |||||||||||||||||
| Security | Maturity | Cost | Gains | Losses | Fair Value | Other Income | ||||||||||||||||
| Held-to-Maturity | ||||||||||||||||||||||
| FDIC-insured promissory notes | Less than one year | $ | — | $ | — | $ | — | $ | — | $ | 458 | |||||||||||
| Total Held-to-Maturity | — | — | — | — | 458 | |||||||||||||||||
| Available-for-Sale | ||||||||||||||||||||||
| FDIC-insured certificates of deposit | Less than one year | 25,000 | 93 | — | 25,093 | 491 | ||||||||||||||||
| Other | Between one and five years or N/A | 675 | 370 | — | 1,045 | 7,754 | ||||||||||||||||
| Total Available-for-Sale | 25,675 | 463 | — | 26,138 | 8,245 | |||||||||||||||||
| Grand Total | $ | 25,675 | $ | 463 | $ | — | $ | 26,138 | $ | 8,703 | ||||||||||||
Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
| • | Level 1 — Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | ||
| • | Level 2 — Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | ||
| • | Level 3 — Inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
The Operating Partnership’s derivative positions are valued using models developed by the respective counterparty as well as models developed internally by the Operating Partnership that use as their basis readily observable market parameters (such as forward yield curves and credit default swap data) and are classified within Level 2 of the valuation hierarchy. In addition, employee holdings other than EQR Common Shares within the supplemental executive retirement plan (the “SERP”) have a fair value of $44.3$58.1 million as of December 31, 20082010 and are included in other assets and other liabilities on the consolidated balance sheet. These SERP investments are valued using quoted market prices for identical assets and are classified within Level 1 of the valuation hierarchy.
F-33
|
|
| Year Ended December 31, | ||||||||||||
| 2008 | 2007 | 2006 | ||||||||||
Numerator for net income per OP Unit – basic and diluted: | ||||||||||||
Income from continuing operations | $ | 42,659 | $ | 70,933 | $ | 32,241 | ||||||
Allocation to Preference Units | (14,507 | ) | (22,792 | ) | (37,113 | ) | ||||||
Allocation to Preference Interests and Junior Preference Units | (15 | ) | (441 | ) | (2,002 | ) | ||||||
Allocation to premium on redemption of Preference Units | - | (6,154 | ) | (3,965 | ) | |||||||
Allocation to premium on redemption of Preference Interests | - | - | (684 | ) | ||||||||
Income (loss) from continuing operations available to OP Units | 28,137 | 41,546 | (11,523 | ) | ||||||||
Discontinued operations, net | 404,376 | 984,295 | 1,115,863 | |||||||||
Numerator for net income per OP Unit – basic and diluted | $ | 432,513 | $ | 1,025,841 | $ | 1,104,340 | ||||||
Denominator for net income per OP Unit – basic and diluted: | ||||||||||||
Denominator for net income per OP Unit – basic | 287,631 | 298,392 | 310,452 | |||||||||
Effect of dilutive securities: | ||||||||||||
Dilution for OP Units issuable opon assumed exercise/vesting of EQR’s share options/restricted shares | 2,429 | 3,843 | - | |||||||||
Denominator for net income per OP Unit – diluted | 290,060 | 302,235 | 310,452 | |||||||||
Net income per OP Unit – basic | $ | 1.50 | $ | 3.44 | $ | 3.56 | ||||||
Net income per OP Unit – diluted | $ | 1.49 | $ | 3.39 | $ | 3.56 | ||||||
Net income per OP Unit – basic: | ||||||||||||
Income (loss) from continuing operations available to OP Units | $ | 0.098 | $ | 0.139 | $ | (0.037 | ) | |||||
Discontinued operations, net | 1.404 | 3.299 | 3.595 | |||||||||
Net income per OP Unit – basic | $ | 1.502 | $ | 3.438 | $ | 3.558 | ||||||
Net income per OP Unit – diluted: | ||||||||||||
Income (loss) from continuing operations available to OP Units | $ | 0.097 | $ | 0.137 | $ | (0.037 | ) | |||||
Discontinued operations, net | 1.394 | 3.257 | 3.595 | |||||||||
Net income per OP Unit – diluted | $ | 1.491 | $ | 3.394 | $ | 3.558 | ||||||
In accordance with SFAS No. 128, Earnings per Share, potential common shares issuable from the assumed exercise of EQR share options and the vesting of EQR restricted shares are automatically anti-dilutive and therefore excluded from the diluted earnings per OP Unit calculation as the Operating Partnership had a loss from continuing operations for the year ended December 31, 2006.
| Year Ended December 31, | ||||||||||||
| 2010 | 2009 | 2008 | ||||||||||
Numerator for net income per Unit — basic and diluted (1): | ||||||||||||
| (Loss) income from continuing operations | $ | (19,844 | ) | $ | 2,931 | $ | (40,054 | ) | ||||
| Net loss (income) attributable to Noncontrolling Interests — Partially Owned Properties | 726 | 558 | (2,650 | ) | ||||||||
| Allocation to Preference Units | (14,368 | ) | (14,479 | ) | (14,507 | ) | ||||||
| Allocation to Preference Interests and Junior Preference Units | — | (9 | ) | (15 | ) | |||||||
| (Loss) from continuing operations available to Units | (33,486 | ) | (10,999 | ) | (57,226 | ) | ||||||
| Discontinued operations, net | 315,827 | 379,098 | 476,467 | |||||||||
| Numerator for net income per Unit — basic and diluted (1) | $ | 282,341 | $ | 368,099 | $ | 419,241 | ||||||
| Denominator for net income per Unit — basic and diluted (1) | 296,527 | 289,167 | 287,631 | |||||||||
| Net income per Unit — basic | $ | 0.95 | $ | 1.27 | $ | 1.46 | ||||||
| Net income per Unit — diluted | $ | 0.95 | $ | 1.27 | $ | 1.46 | ||||||
Net income per Unit — basic: | ||||||||||||
| (Loss) from continuing operations available to Units | $ | (0.113 | ) | $ | (0.038 | ) | $ | (0.199 | ) | |||
| Discontinued operations, net | 1.065 | 1.309 | 1.655 | |||||||||
| Net income per Unit — basic | $ | 0.952 | $ | 1.271 | $ | 1.456 | ||||||
Net income per Unit — diluted (1): | ||||||||||||
| (Loss) from continuing operations available to Units | $ | (0.113 | ) | $ | (0.038 | ) | $ | (0.199 | ) | |||
| Discontinued operations, net | 1.065 | 1.309 | 1.655 | |||||||||
| Net income per Unit — diluted | $ | 0.952 | $ | 1.271 | $ | 1.456 | ||||||
| Distributions declared per Unit outstanding | $ | 1.47 | $ | 1.64 | $ | 1.93 | ||||||
| (1) | Potential Units issuable from the assumed exercise/vesting of EQR long-term compensation award shares/units are automatically anti-dilutive and therefore excluded from the diluted earnings per Unit calculation as the Operating Partnership had a loss from continuing operations for the years ended December 31, 2010, 2009 and 2008, respectively. |
|
|
F-34
| Year Ended December 31, | ||||||||||||
| 2008 | 2007 | 2006 | ||||||||||
REVENUES | ||||||||||||
Rental income | $ | 45,708 | $ | 200,131 | $ | 461,802 | ||||||
Total revenues | 45,708 | 200,131 | 461,802 | |||||||||
EXPENSES (1) | ||||||||||||
Property and maintenance | 18,537 | 69,391 | 148,735 | |||||||||
Real estate taxes and insurance | 5,974 | 26,845 | 59,311 | |||||||||
Property management | (62 | ) | 266 | 8,934 | ||||||||
Depreciation | 11,746 | 54,124 | 109,954 | |||||||||
General and administrative | 29 | 15 | 117 | |||||||||
Impairment | - | - | 351 | |||||||||
Total expenses | 36,224 | 150,641 | 327,402 | |||||||||
Discontinued operating income | 9,484 | 49,490 | 134,400 | |||||||||
Interest and other income | 224 | 221 | 1,758 | |||||||||
Interest (2): | ||||||||||||
Expense incurred, net | (37 | ) | (4,010 | ) | (35,294 | ) | ||||||
Amortization of deferred financing costs | - | (1,728 | ) | (1,057 | ) | |||||||
Income and other tax benefit (expense) | 1,848 | 7,309 | (3,547 | ) | ||||||||
Discontinued operations | 11,519 | 51,282 | 96,260 | |||||||||
Net gain on sales of discontinued operations | 392,857 | 933,013 | 1,019,603 | |||||||||
Discontinued operations, net | $ | 404,376 | $ | 984,295 | $ | 1,115,863 | ||||||
| Year Ended December 31, | ||||||||||||
| 2010 | 2009 | 2008 | ||||||||||
REVENUES | ||||||||||||
| Rental income | $ | 67,670 | $ | 160,031 | $ | 261,924 | ||||||
| Total revenues | 67,670 | 160,031 | 261,924 | |||||||||
EXPENSES (1) | ||||||||||||
| Property and maintenance | 18,659 | 49,088 | 75,079 | |||||||||
| Real estate taxes and insurance | 7,028 | 18,065 | 28,764 | |||||||||
| Property management | — | — | (62 | ) | ||||||||
| Depreciation | 16,770 | 41,104 | 66,625 | |||||||||
| General and administrative | 36 | 34 | 29 | |||||||||
| Total expenses | 42,493 | 108,291 | 170,435 | |||||||||
| Discontinued operating income | 25,177 | 51,740 | 91,489 | |||||||||
| Interest and other income | 497 | 120 | 427 | |||||||||
| Other expenses | — | (1 | ) | — | ||||||||
| Interest (2): | ||||||||||||
| Expense incurred, net | (7,722 | ) | (8,660 | ) | (10,093 | ) | ||||||
| Amortization of deferred financing costs | (37 | ) | (561 | ) | (54 | ) | ||||||
| Income and other tax (expense) benefit | (44 | ) | 1,161 | 1,841 | ||||||||
| Discontinued operations | 17,871 | 43,799 | 83,610 | |||||||||
| Net gain on sales of discontinued operations | 297,956 | 335,299 | 392,857 | |||||||||
| Discontinued operations, net | $ | 315,827 | $ | 379,098 | $ | 476,467 | ||||||
| (1) |
| Includes expenses paid in the current period for properties sold or held for sale in prior periods related to the Operating Partnership’s period of ownership. |
(2) | Includes only interest expense specific to secured mortgage notes payable for properties sold and/or held for sale. |
The net real estate basis of the Operating Partnership’s active condominium conversion properties owned by the TRS and included in discontinued operations (excludes the Operating Partnership’s halted conversions as they are now held for use), which2009 were included in investment in real estate, net in the consolidated balance sheets, was $12.6$430.5 million and $24.1$89.4 million, at December 31, 2008 and 2007, respectively.
|
|
SARs, restricted shares, and performance shares and LTIP Units (see discussion below) are sometimes collectively referred to herein as “Awards”.
F-35
As to the restricted
If the Company’s Average | Less | Greater | ||||||||||||||
Annual Return exceeds | than | than | ||||||||||||||
the T-Note Rate by: | 0.99% | 1-1.99% | 2% | 3% | 4% | 5% | 6% | 7% | ||||||||
Then the executive officer will receive | ||||||||||||||||
Common Shares equal to thetarget number of awards times the following %: | 0% | 50% | 100% | 115% | 135% | 165% | 190% | 225% | ||||||||
to a specified target. If the Company’s Average Annual Return exceedscapital target is not attained within ten years following the T-Note Rate by an amount which falls between anydate of issuance, the percentages in excess of the 2% threshold, the performance-based awardLTIP Unit will automatically be canceled and no compensation will be determined by extrapolation between the two percentages. Fifty percent of the Common Shares to which an executive officer may be entitled under the performance share grants will vest, subjectpayable to the executive’s continued employment with the Company, on the third anniversaryholder of the award (which will be the date the Common Shares are issued); twenty-five percent will vest on the fourth anniversary and the remaining twenty-five percent will vest on the fifth anniversary. The Common Shares will also fully vest upon the executive’s death, meeting of retirement criteria (see below for further discussion), disability or upon a change in control of the Company.
such canceled LTIP Unit.
F-36
| Year Ended December 31, 2008 | ||||||||||||||
| Compensation Expense | Compensation Capitalized | Compensation Equity | Dividends Incurred | |||||||||||
Performance shares | $ | (8 | ) | $ | - | $ | (8 | ) | $ | - | ||||
Restricted shares | 15,761 | 1,517 | 17,278 | 2,175 | ||||||||||
Share options | 5,361 | 485 | 5,846 | - | ||||||||||
ESPP discount | 1,197 | 92 | 1,289 | - | ||||||||||
Total | $ | 22,311 | $ | 2,094 | $ | 24,405 | $ | 2,175 | ||||||
| Year Ended December 31, 2007 | ||||||||||||||
| Compensation Expense | Compensation Capitalized | Compensation Equity | Dividends Incurred | |||||||||||
Performance shares | $ | 1,278 | $ | - | $ | 1,278 | $ | - | ||||||
Restricted shares | 13,816 | 1,414 | 15,230 | 2,296 | ||||||||||
Share options | 4,922 | 423 | 5,345 | - | ||||||||||
ESPP discount | 1,615 | 86 | 1,701 | - | ||||||||||
Total | $ | 21,631 | $ | 1,923 | $ | 23,554 | $ | 2,296 | ||||||
| Year Ended December 31, 2006 | ||||||||||||||
| Compensation Expense | Compensation Capitalized | Compensation Equity | Dividends Incurred | |||||||||||
Performance shares | $ | 1,795 | $ | - | $ | 1,795 | $ | - | ||||||
Restricted shares | 13,923 | 1,021 | 14,944 | 2,437 | ||||||||||
Share options | 4,868 | 330 | 5,198 | - | ||||||||||
ESPP discount | 1,494 | 84 | 1,578 | - | ||||||||||
Total | $ | 22,080 | $ | 1,435 | $ | 23,515 | $ | 2,437 | ||||||
| Year Ended December 31, 2010 | ||||||||||||||||
| Compensation | Compensation | Compensation | Dividends | |||||||||||||
| Expense | Capitalized | Equity | Incurred | |||||||||||||
| Restricted shares | $ | 8,603 | $ | 1,178 | $ | 9,781 | $ | 1,334 | ||||||||
| LTIP Units | 2,334 | 190 | 2,524 | 138 | ||||||||||||
| Share options | 6,707 | 714 | 7,421 | — | ||||||||||||
| ESPP discount | 1,231 | 59 | 1,290 | — | ||||||||||||
| Total | $ | 18,875 | $ | 2,141 | $ | 21,016 | $ | 1,472 | ||||||||
| Year Ended December 31, 2009 | ||||||||||||||||
| Compensation | Compensation | Compensation | Dividends | |||||||||||||
| Expense | Capitalized | Equity | Incurred | |||||||||||||
| Performance shares | $ | 103 | $ | 76 | $ | 179 | $ | — | ||||||||
| Restricted shares | 10,065 | 1,067 | 11,132 | 1,627 | ||||||||||||
| LTIP Units | 1,036 | 158 | 1,194 | 254 | ||||||||||||
| Share options | 5,458 | 538 | 5,996 | — | ||||||||||||
| ESPP discount | 1,181 | 122 | 1,303 | — | ||||||||||||
| Total | $ | 17,843 | $ | 1,961 | $ | 19,804 | $ | 1,881 | ||||||||
| Year Ended December 31, 2008 | ||||||||||||||||
| Compensation | Compensation | Compensation | Dividends | |||||||||||||
| Expense | Capitalized | Equity | Incurred | |||||||||||||
| Performance shares | $ | (8 | ) | $ | — | $ | (8 | ) | $ | — | ||||||
| Restricted shares | 15,761 | 1,517 | 17,278 | 2,175 | ||||||||||||
| Share options | 5,361 | 485 | 5,846 | — | ||||||||||||
| ESPP discount | 1,197 | 92 | 1,289 | — | ||||||||||||
| Total | $ | 22,311 | $ | 2,094 | $ | 24,405 | $ | 2,175 | ||||||||
Restricted shares and share options – Straight-line method over the vesting period of the options or shares regardless of cliff or ratable vesting distinctions.
Performance shares – Accelerated method with each vesting tranche valued as a separate award, with a separate vesting date, consistent with the estimated value of the award at each period end.
| • | Restricted shares, LTIP Units and share options — Straight-line method over the vesting period of the options or shares regardless of cliff or ratable vesting distinctions. | ||
| • | Performance shares — Accelerated method with each vesting tranche valued as a separate award, with a separate vesting date, consistent with the estimated value of the award at each period end. | ||
| • | ESPP discount — Immediately upon the purchase of common shares each quarter. |
ESPP discount – Immediately upon the purchase of common shares each quarter.
In accordance with the applicable provisions of SFAS No. 123(R), the The Company accelerates the recognition of compensation expense for all Awards for those individuals approaching or meeting the retirement age criteria discussed above. The total compensation expense related to Awards not yet vested at December 31, 20082010 is $19.6$19.5 million, which is expected to be recognized over a weighted average term of 1.31.5 years.
F-37
| Common Shares Subject to Options | Weighted Average Exercise Price per Option | Restricted Shares | Weighted Average Fair Value per Restricted Share | |||||||||
Balance at December 31, 2005 | 10,572,743 | $ | 27.02 | 1,369,828 | $ | 28.42 | ||||||
Awards granted (1) | 1,671,122 | $ | 42.32 | 684,998 | $ | 34.65 | ||||||
Awards exercised/vested (2) (3) | (2,647,776 | ) | $ | 26.58 | (670,768 | ) | $ | 21.63 | ||||
Awards forfeited | (162,760 | ) | $ | 35.57 | (81,301 | ) | $ | 34.71 | ||||
Awards expired | (17,542 | ) | $ | 26.09 | - | - | ||||||
Balance at December 31, 2006 | 9,415,787 | $ | 29.71 | 1,302,757 | $ | 34.85 | ||||||
Awards granted (1) | 1,030,935 | $ | 53.46 | 453,580 | $ | 52.56 | ||||||
Awards exercised/vested (2) (3) | (1,040,765 | ) | $ | 27.00 | (477,002 | ) | $ | 31.78 | ||||
Awards forfeited | (166,585 | ) | $ | 44.88 | (101,147 | ) | $ | 41.92 | ||||
Awards expired | (54,231 | ) | $ | 36.45 | - | - | ||||||
Balance at December 31, 2007 | 9,185,141 | $ | 32.37 | 1,178,188 | $ | 42.30 | ||||||
Awards granted (1) | 1,436,574 | $ | 38.46 | 524,983 | $ | 38.29 | ||||||
Awards exercised/vested (2) (3) | (995,129 | ) | $ | 24.75 | (644,131 | ) | $ | 35.99 | ||||
Awards forfeited | (113,786 | ) | $ | 43.95 | (63,029 | ) | $ | 44.87 | ||||
Awards expired | (39,541 | ) | $ | 35.91 | - | - | ||||||
Balance at December 31, 2008 | 9,473,259 | $ | 33.94 | 996,011 | $ | 44.16 | ||||||
| Weighted | Weighted | Weighted | ||||||||||||||||||||||
| Common | Average | Average Fair | Average Fair | |||||||||||||||||||||
| Shares Subject | Exercise Price | Restricted | Value per | LTIP | Value per | |||||||||||||||||||
| to Options | per Option | Shares | Restricted Share | Units | LTIP Unit | |||||||||||||||||||
| Balance at December 31, 2007 | 9,185,141 | $ | 32.37 | 1,178,188 | $ | 42.30 | ||||||||||||||||||
| Awards granted (1) | 1,436,574 | $ | 38.46 | 524,983 | $ | 38.29 | ||||||||||||||||||
| Awards exercised/vested (2) (3) | (995,129 | ) | $ | 24.75 | (644,131 | ) | $ | 35.99 | ||||||||||||||||
| Awards forfeited | (113,786 | ) | $ | 43.95 | (63,029 | ) | $ | 44.87 | ||||||||||||||||
| Awards expired | (39,541 | ) | $ | 35.91 | — | — | ||||||||||||||||||
| Balance at December 31, 2008 | 9,473,259 | $ | 33.94 | 996,011 | �� | $ | 44.16 | — | — | |||||||||||||||
| Awards granted (1) | 2,541,005 | $ | 23.08 | 362,997 | $ | 22.62 | 155,189 | $ | 21.11 | |||||||||||||||
| Awards exercised/vested (2) (3) | (422,713 | ) | $ | 21.62 | (340,362 | ) | $ | 42.67 | — | — | ||||||||||||||
| Awards forfeited | (146,151 | ) | $ | 30.07 | (64,280 | ) | $ | 35.28 | (573 | ) | $ | 21.11 | ||||||||||||
| Awards expired | (95,650 | ) | $ | 32.21 | — | — | — | — | ||||||||||||||||
| Balance at December 31, 2009 | 11,349,750 | $ | 32.03 | 954,366 | $ | 37.10 | 154,616 | $ | 21.11 | |||||||||||||||
| Awards granted (1) | 1,436,115 | $ | 33.59 | 270,805 | $ | 34.85 | 94,096 | $ | 32.97 | |||||||||||||||
| Awards exercised/vested (2) (3) | (2,506,645 | ) | $ | 28.68 | (278,183 | ) | $ | 52.25 | — | — | ||||||||||||||
| Awards forfeited | (76,275 | ) | $ | 29.43 | (35,038 | ) | $ | 30.84 | (1,204 | ) | $ | 21.11 | ||||||||||||
| Awards expired | (96,457 | ) | $ | 42.69 | — | — | — | — | ||||||||||||||||
| Balance at December 31, 2010 | 10,106,488 | $ | 33.00 | 911,950 | $ | 32.05 | 247,508 | $ | 25.62 | |||||||||||||||
| (1) |
| The weighted average grant date fair value for Options granted during the years ended December 31, 2010, 2009 and 2008 |
(2) | The aggregate intrinsic value of options exercised during the years ended December 31, 2010, 2009 and 2008 |
(3) | The fair value of restricted shares vested during the years ended December 31, 2010, 2009 and 2008 |
Range of Exercise Prices $16.05 to $21.40 $21.41 to $26.75 $26.76 to $32.10 $32.11 to $37.45 $37.46 to $42.80 $42.81 to $48.15 $48.16 to $53.50 $16.05 to $53.50 Vested and expected to vest as of December 31, 2008 Options Outstanding (1) Options Exercisable (2) Options Weighted
Average
Remaining
Contractual
Life in Years Weighted
Average
Exercise
Price Options Weighted
Average
Exercise
Price 379,299 1.05 $21.05 379,299 $21.05 1,351,459 3.23 $24.24 1,351,459 $24.24 4,023,395 4.64 $29.55 4,023,395 $29.55 26,802 5.73 $32.57 25,573 $32.46 2,786,492 7.79 $40.39 1,332,138 $41.40 4,308 7.64 $45.21 3,992 $45.33 901,504 7.85 $53.50 406,488 $53.50 9,473,259 5.53 $33.94 7,522,344 $31.58 9,153,483 5.58 $33.68
| Options Outstanding (1) | Options Exercisable (2) | |||||||||||||||||||
| Weighted | ||||||||||||||||||||
| Average | Weighted | Weighted | ||||||||||||||||||
| Remaining | Average | Average | ||||||||||||||||||
| Contractual | Exercise | Exercise | ||||||||||||||||||
| Range of Exercise Prices | Options | Life in Years | Price | Options | Price | |||||||||||||||
| $21.40 to $26.75 | 2,974,937 | 6.18 | $ | 23.42 | 1,403,771 | $ | 23.82 | |||||||||||||
| $26.76 to $32.10 | 2,478,594 | 3.09 | $ | 29.99 | 2,478,594 | $ | 29.99 | |||||||||||||
| $32.11 to $37.45 | 1,374,888 | 9.01 | $ | 32.96 | 23,546 | $ | 32.23 | |||||||||||||
| $37.46 to $42.80 | 2,363,450 | 5.87 | $ | 40.44 | 2,023,316 | $ | 40.75 | |||||||||||||
| $42.81 to $48.15 | 4,202 | 5.32 | $ | 45.25 | 4,202 | $ | 45.25 | |||||||||||||
| $48.16 to $53.50 | 910,417 | 6.09 | $ | 53.19 | 853,222 | $ | 53.50 | |||||||||||||
| $21.40 to $53.50 | 10,106,488 | 5.73 | $ | 33.00 | 6,786,651 | $ | 34.89 | |||||||||||||
| Vested and expected to vest as of December 31, 2010 | 9,718,763 | 5.69 | $ | 33.12 | ||||||||||||||||
| (1) |
| The aggregate intrinsic value of |
(2) | The aggregate intrinsic value and weighted average remaining contractual life in years of options exercisable as of December 31, |
F-38
|
|
| Year Ended December 31, | ||||||
| 2008 | 2007 | 2006 | ||||
| (Amounts in thousands except share and per share amounts) | ||||||
Shares issued | 195,961 | 189,071 | 213,427 | |||
Issuance price ranges | $23.51 – $37.61 | $31.38 – $43.17 | $35.43 – $43.30 | |||
Issuance proceeds | $6,170 | $7,165 | $7,972 | |||
| Year Ended December 31, | ||||||||||||
| 2010 | 2009 | 2008 | ||||||||||
| (Amounts in thousands except share and per share amounts) | ||||||||||||
| Shares issued | 157,363 | 324,394 | 195,961 | |||||||||
| Issuance price ranges | $ | 28.26 - $41.16 | $ | 14.21 – $24.84 | $ | 23.51 – $37.61 | ||||||
| Issuance proceeds | $ | 5,112 | $ | 5,292 | $ | 6,170 | ||||||
in these years.
|
|
2010.
F-39
|
|
2008.
|
|
F-40
Payments Due by Year (in thousands) Operating Leases: Minimum Rent Payments (a) Other Long-Term Liabilities: Deferred Compensation (b) 2009 2010 2011 2012 2013 Thereafter Total $ 6,047 $ 5,530 $ 3,582 $ 1,273 $ 1,101 $ 58,553 $ 76,086 1,456 1,457 2,062 2,062 1,464 11,376 19,877
| Payments Due by Year (in thousands) | ||||||||||||||||||||||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | Thereafter | Total | ||||||||||||||||||||||
| Operating Leases: | ||||||||||||||||||||||||||||
| Minimum Rent Payments (a) | $ | 5,478 | $ | 4,285 | $ | 4,431 | $ | 4,736 | $ | 4,729 | $ | 320,928 | $ | 344,587 | ||||||||||||||
| Other Long-Term Liabilities: | ||||||||||||||||||||||||||||
| Deferred Compensation (b) | 1,457 | 1,770 | 1,485 | 1,677 | 1,677 | 9,182 | 17,248 | |||||||||||||||||||||
| (a) |
| Minimum basic rent due for various office space the Operating Partnership leases and fixed base rent due on ground leases for |
(b) | Estimated payments to EQR’s Chairman, Vice Chairman and two former CEO’s |
|
|
During the year ended December 31, 2008, the Operating Partnership recorded approximately $116.4 million of asset impairment charges on land held for development related to five potential development projects that will no longer be pursued. Following the guidance in SFAS No. 144, this charge was the result of an analysis of each parcel’s estimated fair value (determined using internally developed models based on market assumptions and comparable sales data) compared to its current capitalized carrying value, including pursuit costs and management’s decision to reduce the number of planned development projects the Operating Partnership will undertake. In addition, the Operating Partnership incurred impairment losses of $5.7 million, $1.7 million and $4.4 million for the years ended December 31, 2008, 2007 and 2006, respectively, related to the write-off of various pursuit and out-of-pocket costs for terminated acquisition, disposition (including halted condominium conversions) and development transactions.
During the year ended December 31, 2006, the Operating Partnership recorded approximately $30.0 million of asset impairment charges related to its write-down of the entire carrying value of the goodwill on its corporate housing business. Following the guidance in SFAS No. 142, this charge was the result of the continued poor operating performance of the corporate housing business and management’s expectations for future performance.
|
|
2008.
rental real estate specific to continuing operations for the years ended December 31, 2008, 20072010, 2009 and 2006,2008, respectively, as well as total assets for the years ended December 31, 20082010 and 2007,2009, respectively (amounts in thousands):
F-41
| Year Ended December 31, 2008 | ||||||||||||||||||
| Northeast | Northwest | Southeast | Southwest | Other (3) | Total | |||||||||||||
Rental income: | ||||||||||||||||||
Same store (1) | $ | 521,817 | $ | 376,141 | $ | 379,999 | $ | 461,047 | $ | - | $ | 1,739,004 | ||||||
Non-same store/other (2) (3) | 91,644 | 29,891 | 65,562 | 52,407 | 113,981 | 353,485 | ||||||||||||
Total rental income | 613,461 | 406,032 | 445,561 | 513,454 | 113,981 | 2,092,489 | ||||||||||||
Operating expenses: | ||||||||||||||||||
Same store (1) | 189,078 | 129,262 | 155,625 | 158,401 | - | 632,366 | ||||||||||||
Non-same store/other (2) (3) | 36,890 | 12,698 | 26,847 | 27,418 | 100,676 | 204,529 | ||||||||||||
Total operating expenses | 225,968 | 141,960 | 182,472 | 185,819 | 100,676 | 836,895 | ||||||||||||
NOI: | ||||||||||||||||||
Same store (1) | 332,739 | 246,879 | 224,374 | 302,646 | - | 1,106,638 | ||||||||||||
Non-same store/other (2) (3) | 54,754 | 17,193 | 38,715 | 24,989 | 13,305 | 148,956 | ||||||||||||
Total NOI | $ | 387,493 | $ | 264,072 | $ | 263,089 | $ | 327,635 | $ | 13,305 | $ | 1,255,594 | ||||||
Total assets | $ | 4,852,278 | $ | 2,632,577 | $ | 3,028,737 | $ | 3,187,144 | $ | 2,834,374 | $ | 16,535,110 | ||||||
| Year Ended December 31, 2010 | ||||||||||||||||||||||||
| Northeast | Northwest | Southeast | Southwest | Other (3) | Total | |||||||||||||||||||
| Rental income: | ||||||||||||||||||||||||
| Same store (1) | $ | 574,147 | $ | 353,123 | $ | 383,475 | $ | 417,523 | $ | — | $ | 1,728,268 | ||||||||||||
| Non-same store/other (2) (3) | 112,747 | 18,042 | 9,271 | 33,456 | 84,259 | 257,775 | ||||||||||||||||||
| Total rental income | 686,894 | 371,165 | 392,746 | 450,979 | 84,259 | 1,986,043 | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Same store (1) | 215,365 | 132,331 | 157,518 | 149,449 | — | 654,663 | ||||||||||||||||||
| Non-same store/other (2) (3) | 54,780 | 7,950 | 4,126 | 15,136 | 69,823 | 151,815 | ||||||||||||||||||
| Total operating expenses | 270,145 | 140,281 | 161,644 | 164,585 | 69,823 | 806,478 | ||||||||||||||||||
| NOI: | ||||||||||||||||||||||||
| Same store (1) | 358,782 | 220,792 | 225,957 | 268,074 | — | 1,073,605 | ||||||||||||||||||
| Non-same store/other (2) (3) | 57,967 | 10,092 | 5,145 | 18,320 | 14,436 | 105,960 | ||||||||||||||||||
| Total NOI | $ | 416,749 | $ | 230,884 | $ | 231,102 | $ | 286,394 | $ | 14,436 | $ | 1,179,565 | ||||||||||||
| Total assets | $ | 6,211,534 | $ | 2,665,707 | $ | 2,602,318 | $ | 3,240,170 | $ | 1,464,465 | $ | 16,184,194 | ||||||||||||
| (1) | Same store primarily includes all properties acquired or completed and stabilized prior to January 1, 2009, less properties subsequently sold, which represented 112,042 apartment units. | |
|
|
| Non-same store primarily includes properties acquired after January 1, |
(3) | Other includes ECH, development, condominium conversion overhead of $0.6 million and other corporate operations. Also reflects a $10.5 million elimination of rental income recorded in Northeast, Northwest, Southeast and Southwest operating segments related to ECH. |
| Year Ended December 31, 2009 | ||||||||||||||||||||||||
| Northeast | Northwest | Southeast | Southwest | Other (3) | Total | |||||||||||||||||||
| Rental income: | ||||||||||||||||||||||||
| Same store (1) | $ | 566,518 | $ | 357,502 | $ | 383,239 | $ | 423,076 | $ | — | $ | 1,730,335 | ||||||||||||
| Non-same store/other (2) (3) | 23,195 | 2,010 | 4,268 | 16,985 | 69,364 | 115,822 | ||||||||||||||||||
| Total rental income | 589,713 | 359,512 | 387,507 | 440,061 | 69,364 | 1,846,157 | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Same store (1) | 211,352 | 129,696 | 158,977 | 148,483 | — | 648,508 | ||||||||||||||||||
| Non-same store/other (2) (3) | 12,798 | 1,851 | 1,727 | 9,418 | 68,692 | 94,486 | ||||||||||||||||||
| Total operating expenses | 224,150 | 131,547 | 160,704 | 157,901 | 68,692 | 742,994 | ||||||||||||||||||
| NOI: | ||||||||||||||||||||||||
| Same store (1) | 355,166 | 227,806 | 224,262 | 274,593 | — | 1,081,827 | ||||||||||||||||||
| Non-same store/other (2) (3) | 10,397 | 159 | 2,541 | 7,567 | 672 | 21,336 | ||||||||||||||||||
| Total NOI | $ | 365,563 | $ | 227,965 | $ | 226,803 | $ | 282,160 | $ | 672 | $ | 1,103,163 | ||||||||||||
| Total assets | $ | 5,435,072 | $ | 2,474,775 | $ | 2,674,499 | $ | 2,971,396 | $ | 1,861,773 | $ | 15,417,515 | ||||||||||||
| (1) | Same store primarily includes all properties acquired or completed and stabilized prior to January 1, 2009, less properties subsequently sold, which represented 112,042 apartment units. | |
| (2) | Non-same store primarily includes properties acquired after January 1, 2009, plus any properties in lease-up and not stabilized as of January 1, 2009. | |
| (3) | Other includes ECH, development, condominium conversion overhead of $1.4 million and other corporate operations. Also reflects a $9.6 million elimination of rental income recorded in Northeast, Northwest, Southeast and Southwest operating segments related to ECH. |
F-42
| Year Ended December 31, 2008 | ||||||||||||||||||||||||
| Northeast | Northwest | Southeast | Southwest | Other (3) | Total | |||||||||||||||||||
| Rental income: | ||||||||||||||||||||||||
| Same store (1) | $ | 553,712 | $ | 372,197 | $ | 407,871 | $ | 444,403 | $ | — | $ | 1,778,183 | ||||||||||||
| Non-same store/other (2) (3) | 37,000 | 18,347 | 6,090 | 23,400 | 101,934 | 186,771 | ||||||||||||||||||
| Properties sold in 2010 (4) | — | — | — | — | (88,681 | ) | (88,681 | ) | ||||||||||||||||
| Total rental income | 590,712 | 390,544 | 413,961 | 467,803 | 13,253 | 1,876,273 | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Same store (1) | 199,673 | 128,448 | 166,022 | 150,980 | — | 645,123 | ||||||||||||||||||
| Non-same store/other (2) (3) | 16,806 | 7,664 | 2,995 | 14,363 | 101,742 | 143,570 | ||||||||||||||||||
| Properties sold in 2010 (4) | — | — | — | — | (31,205 | ) | (31,205 | ) | ||||||||||||||||
| Total operating expenses | 216,479 | 136,112 | 169,017 | 165,343 | 70,537 | 757,488 | ||||||||||||||||||
| NOI: | ||||||||||||||||||||||||
| Same store (1) | 354,039 | 243,749 | 241,849 | 293,423 | — | 1,133,060 | ||||||||||||||||||
| Non-same store/other (2) (3) | 20,194 | 10,683 | 3,095 | 9,037 | 192 | 43,201 | ||||||||||||||||||
| Properties sold in 2010 (4) | — | — | — | — | (57,476 | ) | (57,476 | ) | ||||||||||||||||
| Total NOI | $ | 374,233 | $ | 254,432 | $ | 244,944 | $ | 302,460 | $ | (57,284 | ) | $ | 1,118,785 | |||||||||||
| (1) | Same store primarily includes all properties acquired or completed and stabilized prior to January 1, 2008, less properties subsequently sold, which represented 113,598 apartment units. | |
| (2) | Non-same store primarily includes properties acquired after January 1, 2008, plus any properties in lease-up and not stabilized as of January 1, 2008. | |
| (3) | Other includes ECH, development, condominium conversion overhead of $2.8 million and other corporate operations. Also reflects a $13.6 million elimination of rental income recorded in Northeast, Northwest, Southeast and Southwest operating segments related to ECH. |
| Year Ended December 31, 2007 | ||||||||||||||||||
| Northeast | Northwest | Southeast | Southwest | Other (3) | Total | |||||||||||||
Rental income: | ||||||||||||||||||
Same store (1) | $ | 502,221 | $ | 351,925 | $ | 379,978 | $ | 451,072 | $ | - | $ | 1,685,196 | ||||||
Non-same store/other (2) (3) | 46,641 | 17,380 | 48,840 | 35,448 | 104,369 | 252,678 | ||||||||||||
Total rental income | 548,862 | 369,305 | 428,818 | 486,520 | 104,369 | 1,937,874 | ||||||||||||
Operating expenses: | ||||||||||||||||||
Same store (1) | 184,287 | 126,161 | 153,734 | 154,700 | - | 618,882 | ||||||||||||
Non-same store/other (2) (3) | 22,656 | 7,222 | 19,133 | 19,730 | 101,111 | 169,852 | ||||||||||||
Total operating expenses | 206,943 | 133,383 | 172,867 | 174,430 | 101,111 | 788,734 | ||||||||||||
NOI: | ||||||||||||||||||
Same store (1) | 317,934 | 225,764 | 226,244 | 296,372 | - | 1,066,314 | ||||||||||||
Non-same store/other (2) (3) | 23,985 | 10,158 | 29,707 | 15,718 | 3,258 | 82,826 | ||||||||||||
Total NOI | $ | 341,919 | $ | 235,922 | $ | 255,951 | $ | 312,090 | $ | 3,258 | $ | 1,149,140 | ||||||
Total assets | $ | 4,745,316 | $ | 2,703,533 | $ | 3,046,598 | $ | 3,213,709 | $ | 1,980,621 | $ | 15,689,777 | ||||||
|
|
|
|
|
|
Rental income: Same store (1) Non-same store/other (2) (3) Properties sold in 2008 (4) Total rental income Operating expenses: Same store (1) Non-same store/other (2) (3) Properties sold in 2008 (4) Total operating expenses NOI: Same store (1) Non-same store/other (2) (3) Properties sold in 2008 (4) Total NOI Year Ended December 31, 2006 Northeast Northwest Southeast Southwest Other (3) Total $ 449,608 $ 325,512 $ 354,441 $ 446,761 $ - $ 1,576,322 51,017 12,421 27,034 27,893 86,144 204,509 - - - - (87,391 ) (87,391 ) 500,625 337,933 381,475 474,654 (1,247 ) 1,693,440 �� 167,452 122,488 141,590 163,544 - 595,074 22,127 4,616 10,777 13,002 92,467 142,989 - - - - (37,296 ) (37,296 ) 189,579 127,104 152,367 176,546 55,171 700,767 282,156 203,024 212,851 283,217 - 981,248 28,890 7,805 16,257 14,891 (6,323 ) 61,520 - - - - (50,095 ) (50,095 ) $ 311,046 $ 210,829 $ 229,108 $ 298,108 $ (56,418 ) $ 992,673
|
|
|
|
|
|
| Reflects discontinued operations for properties sold during |
(a) | Northeast – New England (excluding Boston), Boston, New York Metro, DC Northern Virginia and Suburban Maryland. |
| (b) | Northwest – |
| (c) | Southeast – Atlanta, Jacksonville, Orlando, |
| (d) | Southwest – Albuquerque, |
| Year Ended December 31, | ||||||||||||
| 2008 | 2007 | 2006 | ||||||||||
| (Amounts in thousands) | ||||||||||||
Rental income | $ | 2,092,489 | $ | 1,937,874 | $ | 1,693,440 | ||||||
Property and maintenance expense | (542,371 | ) | (505,899 | ) | (444,290 | ) | ||||||
Real estate taxes and insurance expense | (217,461 | ) | (195,359 | ) | (160,299 | ) | ||||||
Property management expense | (77,063 | ) | (87,476 | ) | (96,178 | ) | ||||||
Total operating expenses | (836,895 | ) | (788,734 | ) | (700,767 | ) | ||||||
Net operating income | $ | 1,255,594 | $ | 1,149,140 | $ | 992,673 | ||||||
| Year Ended December 31, | ||||||||||||
| 2010 | 2009 | 2008 | ||||||||||
| Rental income | $ | 1,986,043 | $ | 1,846,157 | $ | 1,876,273 | ||||||
| Property and maintenance expense | (498,634 | ) | (464,809 | ) | (485,754 | ) | ||||||
| Real estate taxes and insurance expense | (226,718 | ) | (206,247 | ) | (194,671 | ) | ||||||
| Property management expense | (81,126 | ) | (71,938 | ) | (77,063 | ) | ||||||
| Total operating expenses | (806,478 | ) | (742,994 | ) | (757,488 | ) | ||||||
| Net operating income | $ | 1,179,565 | $ | 1,103,163 | $ | 1,118,785 | ||||||
| ||
| Subsequent | ||
| Subsequent to December 31, 2010, the Operating Partnership: |
| • | Acquired two apartment properties consisting of 521 apartment units for $137.1 million; | ||
| • | Sold two consolidated apartment properties consisting of 600 apartment units for $32.7 million; | ||
| • | Repaid $173.0 million in mortgage loans; | ||
| • | Issued 3.0 million Common Shares at an average price of $50.84 per share for total consideration of $154.5 million under EQR’s ATM share offering program; and | ||
| • | Increased its availability for issuance under EQR’s ATM share offering program to 10,000,000 |
Subsequent EventsF-43
Subsequent
| Common Shares. |
Sold three apartment properties consisting of 468 units for $31.9 million (excluding condominium units);
Repaid $37.0Partnership recorded $116.4 million of mortgage loans;non-cash asset impairment charges on land held for development related to five potential development projects that will no longer be pursued. These charges were the result of an analysis of each parcel’s estimated fair value (determined using internally developed models that were based on market assumptions and
Completed a cash tender offer, accepting for repurchase $105.2 million principal amount of its 4.75% public notes due June 15, 2009 and $185.2 million principal amount of its 6.95% public notes due March 2, 2011.
Other
During the years ended December 31, 2010, 2009 and 2008, 2007the Operating Partnership incurred charges of $6.6 million, $1.7 million and 2006,$0.2 million, respectively, related to property acquisition costs, such as survey, title and legal fees, on the acquisition of operating properties and $5.3 million, $4.8 million and $5.6 million, respectively, related to the write-off of various pursuit and out-of-pocket costs for terminated acquisition, disposition and development transactions. These costs, totaling $11.9 million, $6.5 million and $5.8 million, respectively, are included in other expenses in the accompanying consolidated statements of operations.
During
the collapsed garage. During the year ended December 31, 2007, the Operating Partnership entered into resignation/release agreements with EQR’s former CFO and one other former EQR executive vice president. The Operating Partnership recorded approximately $3.4 million of additional general and administrative expense during the year ended December 31, 2007 related to cash severance and accelerated vesting of share options and restricted/performance shares.
The Operating Partnership recorded a reduction to general and administrative expense of approximately $1.7 million during the year ended December 31, 2007 due to the successful resolution of a certain lawsuit in Florida, resulting in the reversal of the majority of a previously established litigation reserve. The Operating Partnership had previously recorded a reduction to general and administrative expense of approximately $2.8 million during the year ended December 31, 2006 due to the recovery of insurance proceeds related to the same lawsuit.
During the year ended December 31, 2007,2010, the Operating Partnership received $1.2 million related to its 7.075% ownership interest in Wellsford Park Highlands Corporation (“WPHC”), an entity which owns a condominium development in Denver, Colorado. The Operating Partnership recorded a gain of approximately $0.7 million as income from investments in unconsolidated entities and has no further ownership interest in WPHC.
During the year ended December 31, 2006, the Operating Partnership received proceeds from technology and other investments of $4.0 million fromin insurance proceeds which fully offset the following, bothimpairment charge and partially offset expenses of which$5.5 million that were recorded as interestrelating to this loss and other incomeare included in real estate taxes and insurance on the accompanying consolidated statements of operations:
$3.7 million for its ownership interest in Rent.com in connection with the acquisition of Rent.com by eBay, Inc. and
$0.3 million as a partial distribution for its ownership interest in Constellation Real Technologies, LLC.
|
|
F-44
2008 Total revenues (1) Operating income (1) Income (loss) from continuing operations (1) Discontinued operations, net (1) Net income (loss) * Net income (loss) available to OP Units Earnings per OP Unit – basic: Net income (loss) available to OP Units Weighted average OP Units outstanding Earnings per OP Unit – diluted: Net income (loss) available to OP Units Weighted average OP Units outstanding First
Quarter
3/31 Second
Quarter
6/30 Third
Quarter
9/30 Fourth
Quarter
12/31 $ 507,405 $ 525,601 $ 536,853 $ 533,345 140,957 162,274 155,825 41,056 21,560 44,310 37,790 (61,001 ) 128,218 96,810 151,747 27,601 149,778 141,120 189,537 (33,400 ) 146,141 137,491 185,905 (37,024 ) $ 0.51 $ 0.48 $ 0.65 $ (0.13 ) 287,079 287,440 287,743 288,251 $ 0.51 $ 0.47 $ 0.64 $ (0.13 ) 289,317 290,445 290,795 288,251
| First | Second | Third | Fourth | |||||||||||||
| Quarter | Quarter | Quarter | Quarter | |||||||||||||
| 2010 | 3/31 | 6/30 | 9/30 | 12/31 | ||||||||||||
| Total revenues (1) | $ | 472,082 | $ | 494,541 | $ | 511,772 | $ | 517,124 | ||||||||
| Operating income (1) | 112,382 | 115,247 | 121,047 | 93,325 | ||||||||||||
| (Loss) income from continuing operations (1) | (7,267 | ) | 4,714 | 14,930 | (32,221 | ) | ||||||||||
| Discontinued operations, net (1) | 65,123 | 5,375 | 14,896 | 230,433 | ||||||||||||
| Net income * | 57,856 | 10,089 | 29,826 | 198,212 | ||||||||||||
| Net income available to Units | 54,486 | 6,656 | 26,397 | 194,802 | ||||||||||||
| Earnings per Unit — basic: | ||||||||||||||||
| Net income available to Units | $ | 0.18 | $ | 0.02 | $ | 0.09 | $ | 0.65 | ||||||||
| Weighted average Units outstanding | 294,450 | 295,898 | 296,348 | 299,363 | ||||||||||||
| Earnings per Unit — diluted: | ||||||||||||||||
| Net income available to Units | $ | 0.18 | $ | 0.02 | $ | 0.09 | $ | 0.65 | ||||||||
| Weighted average Units outstanding | 294,450 | 299,642 | 300,379 | 299,363 | ||||||||||||
| ||
| (1) | The amounts presented for the first three quarters of |
| First | Second | Third | ||||||||||
| Quarter | Quarter | Quarter | ||||||||||
| 2010 | 3/31 | 6/30 | 9/30 | |||||||||
| Total revenues previously reported in Form 10-Q | $ | 488,690 | $ | 510,937 | $ | 527,356 | ||||||
| Total revenues subsequently reclassified to discontinued operations | (16,608 | ) | (16,396 | ) | (15,584 | ) | ||||||
| Total revenues disclosed in Form 10-K | $ | 472,082 | $ | 494,541 | $ | 511,772 | ||||||
| Operating income previously reported in Form 10-Q | $ | 118,596 | $ | 121,529 | $ | 127,196 | ||||||
| Operating income subsequently reclassified to discontinued operations | (6,214 | ) | (6,282 | ) | (6,149 | ) | ||||||
| Operating income disclosed in Form 10-K | $ | 112,382 | $ | 115,247 | $ | 121,047 | ||||||
| (Loss) income from continuing operations previously reported in Form 10-Q | $ | (2,208 | ) | $ | 9,406 | $ | 19,884 | |||||
| Income from continuing operations subsequently reclassified to discontinued operations | (5,059 | ) | (4,692 | ) | (4,954 | ) | ||||||
| (Loss) income from continuing operations disclosed in Form 10-K | $ | (7,267 | ) | $ | 4,714 | $ | 14,930 | |||||
| Discontinued operations, net previously reported in Form 10-Q | $ | 60,064 | $ | 683 | $ | 9,942 | ||||||
| Discontinued operations, net from properties sold subsequent to the respective reporting period | 5,059 | 4,692 | 4,954 | |||||||||
| Discontinued operations, net disclosed in Form 10-K | $ | 65,123 | $ | 5,375 | $ | 14,896 | ||||||
| First | Second | Third | Fourth | |||||||||||||
| Quarter | Quarter | Quarter | Quarter | |||||||||||||
| 2009 | 3/31 | 6/30 | 9/30 | 12/31 | ||||||||||||
| Total revenues (2) | $ | 466,177 | $ | 464,225 | $ | 464,827 | $ | 461,274 | ||||||||
| Operating income (2) | 126,283 | 120,661 | 122,703 | 126,954 | ||||||||||||
| Income (loss) from continuing operations (2) | 7,858 | 7,813 | 4,256 | (16,996 | ) | |||||||||||
| Discontinued operations, net (2) | 77,563 | 98,119 | 139,109 | 64,307 | ||||||||||||
| Net income * | 85,421 | 105,932 | 143,365 | 47,311 | ||||||||||||
| Net income available to Units | 81,866 | 102,314 | 140,061 | 43,858 | ||||||||||||
| Earnings per Unit — basic: | ||||||||||||||||
| Net income available to Units | $ | 0.28 | $ | 0.35 | $ | 0.48 | $ | 0.15 | ||||||||
| Weighted average Units outstanding | 288,710 | 288,990 | 289,262 | 289,693 | ||||||||||||
| Earnings per Unit — diluted: | ||||||||||||||||
| Net income available to Units | $ | 0.28 | $ | 0.35 | $ | 0.48 | $ | 0.15 | ||||||||
| Weighted average Units outstanding | 288,853 | 289,338 | 290,215 | 289,693 | ||||||||||||
F-45
2008 | First Quarter 3/31 | Second Quarter 6/30 | Third Quarter 9/30 | |||||||||||||
Total revenues previously reported in Form 10-Q | $ | 522,812 | $ | 535,525 | $ | 538,319 | ||||||||||
Total revenues subsequently reclassified to discontinued operations | (15,407 | ) | (9,924 | ) | (1,466 | ) | ||||||||||
Total revenues disclosed in Form 10-K | $ | 507,405 | $ | 525,601 | $ | 536,853 | ||||||||||
Operating income previously reported in Form 10-Q | $ | 146,847 | $ | 165,859 | $ | 156,570 | ||||||||||
Operating income subsequently reclassified to discontinued operations | (5,890 | ) | (3,585 | ) | (745 | ) | ||||||||||
Operating income disclosed in Form 10-K | $ | 140,957 | $ | 162,274 | $ | 155,825 | ||||||||||
Income from continuing operations previously reported in Form 10-Q | $ | 27,546 | $ | 47,895 | $ | 38,496 | ||||||||||
Income from continuing operations subsequently reclassified to discontinued operations | (5,986 | ) | (3,585 | ) | (706 | ) | ||||||||||
Income from continuing operations disclosed in Form 10-K | $ | 21,560 | $ | 44,310 | $ | 37,790 | ||||||||||
Discontinued operations, net previously reported in Form 10-Q | $ | 122,232 | $ | 93,225 | $ | 151,041 | ||||||||||
Discontinued operations, net from properties sold subsequent to the respective reporting period | 5,986 | 3,585 | 706 | |||||||||||||
Discontinued operations, net disclosed in Form 10-K | $ | 128,218 | $ | 96,810 | $ | 151,747 | ||||||||||
2007 | First Quarter 3/31 | Second Quarter 6/30 | Third Quarter 9/30 | Fourth Quarter 12/31 | ||||||||||||||
Total revenues (2) | $ | 460,763 | $ | 481,619 | $ | 499,658 | $ | 505,017 | ||||||||||
Operating income (2) | 116,318 | 132,946 | 137,949 | 151,915 | ||||||||||||||
Income from continuing operations (2) | 4,690 | 15,644 | 16,728 | 33,871 | ||||||||||||||
Discontinued operations, net (2) | 129,656 | 285,187 | 471,851 | 97,601 | ||||||||||||||
Net income * | 134,346 | 300,831 | 488,579 | 131,472 | ||||||||||||||
Net income available to OP Units | 126,699 | 293,204 | 478,115 | 127,823 | ||||||||||||||
Earnings per OP Unit – basic: | ||||||||||||||||||
Net income available to OP Units | $ | 0.41 | $ | 0.97 | $ | 1.64 | $ | 0.44 | ||||||||||
Weighted average OP Units outstanding | 311,697 | 303,511 | 290,977 | 287,728 | ||||||||||||||
Earnings per OP Unit – diluted: | ||||||||||||||||||
Net income available to OP Units | $ | 0.41 | $ | 0.95 | $ | 1.62 | $ | 0.44 | ||||||||||
Weighted average OP Units outstanding | 311,697 | 307,631 | 294,331 | 290,658 | ||||||||||||||
| ||
| (2) | The amounts presented for the four quarters of |
| First | Second | Third | Fourth | |||||||||||||
| Quarter | Quarter | Quarter | Quarter | |||||||||||||
| 2009 | 3/31 | 6/30 | 9/30 | 12/31 | ||||||||||||
| Total revenues previously reported in September 2010 Form 8-K/Form 10-Q | $ | 482,475 | $ | 480,333 | $ | 480,241 | $ | 477,365 | ||||||||
| Total revenues subsequently reclassified to discontinued operations | (16,298 | ) | (16,108 | ) | (15,414 | ) | (16,091 | ) | ||||||||
| Total revenues disclosed in Form 10-K | $ | 466,177 | $ | 464,225 | $ | 464,827 | $ | 461,274 | ||||||||
| Operating income previously reported in September 2010 Form 8-K/Form 10-Q | $ | 132,245 | $ | 126,944 | $ | 128,655 | $ | 133,239 | ||||||||
| Operating income subsequently reclassified to discontinued operations | (5,962 | ) | (6,283 | ) | (5,952 | ) | (6,285 | ) | ||||||||
| Operating income disclosed in Form 10-K | $ | 126,283 | $ | 120,661 | $ | 122,703 | $ | 126,954 | ||||||||
| Income (loss) from continuing operations previously reported in September 2010 Form 8-K/Form 10-Q | $ | 11,948 | $ | 12,339 | $ | 9,029 | $ | (13,146 | ) | |||||||
| Income from continuing operations subsequently reclassified to discontinued operations | (4,090 | ) | (4,526 | ) | (4,773 | ) | (3,850 | ) | ||||||||
| Income (loss) from continuing operations disclosed in Form 10-K | $ | 7,858 | $ | 7,813 | $ | 4,256 | $ | (16,996 | ) | |||||||
| Discontinued operations, net previously reported in September 2010 Form 8-K/Form 10-Q | $ | 73,473 | $ | 93,593 | $ | 134,336 | $ | 60,457 | ||||||||
| Discontinued operations, net from properties sold subsequent to the respective reporting period | 4,090 | 4,526 | 4,773 | 3,850 | ||||||||||||
| Discontinued operations, net disclosed in Form 10-K | $ | 77,563 | $ | 98,119 | $ | 139,109 | $ | 64,307 | ||||||||
| * | The Operating Partnership did not have any extraordinary items or cumulative effect of change in accounting principle during the years ended December 31, 2010 and 2009. Therefore, income before extraordinary items and cumulative effect of change in accounting principle is not shown as it was equal to the net income amounts disclosed above. |
F-46
2007 | First Quarter 3/31 | Second Quarter 6/30 | Third Quarter 9/30 | Fourth Quarter 12/31 | ||||||||||||
Total revenues previously reported in December 2008 Form 8-K | $ | 462,557 | $ | 483,319 | $ | 501,102 | $ | 506,460 | ||||||||
Total revenues subsequently reclassified to discontinued operations | (1,794 | ) | (1,700 | ) | (1,444 | ) | (1,443 | ) | ||||||||
Total revenues disclosed in Form 10-K | $ | 460,763 | $ | 481,619 | $ | 499,658 | $ | 505,017 | ||||||||
Operating income previously reported in December 2008 Form 8-K | $ | 116,289 | $ | 133,373 | $ | 137,628 | $ | 151,959 | ||||||||
Operating income subsequently reclassified to discontinued operations | (569 | ) | (530 | ) | (467 | ) | (1,000 | ) | ||||||||
Other | 598 | 103 | 788 | 956 | ||||||||||||
Operating income disclosed in Form 10-K | $ | 116,318 | $ | 132,946 | $ | 137,949 | $ | 151,915 | ||||||||
Income from continuing operations previously reported in December 2008 Form 8-K | $ | 5,260 | $ | 16,177 | $ | 17,175 | $ | 34,968 | ||||||||
Income from continuing operations subsequently reclassified to discontinued operations | (570 | ) | (533 | ) | (447 | ) | (1,097 | ) | ||||||||
Income from continuing operations disclosed in Form 10-K | $ | 4,690 | $ | 15,644 | $ | 16,728 | $ | 33,871 | ||||||||
Discontinued operations, net previously reported in December 2008 Form 8-K | $ | 129,086 | $ | 284,654 | $ | 471,404 | $ | 96,504 | ||||||||
Discontinued operations, net from properties sold subsequent to the respective reporting period | 570 | 533 | 447 | 1,097 | ||||||||||||
Discontinued operations, net disclosed in Form 10-K | $ | 129,656 | $ | 285,187 | $ | 471,851 | $ | 97,601 | ||||||||
* The Operating Partnership did not have any extraordinary items or cumulative effect of change in accounting principle during the years ended December 31, 2008 and 2007. Therefore, income before extraordinary items and cumulative effect of change in accounting principle is not shown as it was equal to the net income amounts disclosed above.
December 31, 20082010
| Investment in Real | Accumulated | Investment in Real | ||||||||||||||||||||||
| Properties (H) | Units (H) | Estate, Gross | Depreciation | Estate, Net | Encumbrances | |||||||||||||||||||
| Wholly Owned Unencumbered | 288 | 80,239 | $ | 12,555,402,637 | $ | (2,847,912,228 | ) | $ | 9,707,490,409 | $ | — | |||||||||||||
| Wholly Owned Encumbered | 137 | 39,395 | 6,016,421,350 | (1,346,626,508 | ) | 4,669,794,842 | 2,595,245,052 | |||||||||||||||||
| Portfolio/Entity Encumbrances (1) | — | — | — | — | — | 1,417,683,780 | ||||||||||||||||||
Wholly Owned Properties | 425 | 119,634 | 18,571,823,987 | (4,194,538,736 | ) | 14,377,285,251 | 4,012,928,832 | |||||||||||||||||
| Partially Owned Unencumbered | — | — | 25,130,204 | — | 25,130,204 | — | ||||||||||||||||||
| Partially Owned Encumbered | 24 | 5,232 | 1,105,416,801 | (142,817,905 | ) | 962,598,896 | 749,967,053 | |||||||||||||||||
Partially Owned Properties | 24 | 5,232 | 1,130,547,005 | (142,817,905 | ) | 987,729,100 | 749,967,053 | |||||||||||||||||
| Total Unencumbered Properties | 288 | 80,239 | 12,580,532,841 | (2,847,912,228 | ) | 9,732,620,613 | — | |||||||||||||||||
| Total Encumbered Properties | 161 | 44,627 | 7,121,838,151 | (1,489,444,413 | ) | 5,632,393,738 | 4,762,895,885 | |||||||||||||||||
Total Consolidated Investment in Real Estate | 449 | 124,866 | $ | 19,702,370,992 | $ | (4,337,356,641 | ) | $ | 15,365,014,351 | $ | 4,762,895,885 | |||||||||||||
| (1) | See attached Encumbrances Reconciliation. |
S-1
| Properties (H) | Units (H) | Investment in Real Estate, Gross | Accumulated Depreciation | Investment in Real Estate, Net | Encumbrances | ||||||||||||
Wholly Owned Unencumbered | 303 | 78,813 | $ | 10,680,108,067 | $ | (2,211,404,675 | ) | $ | 8,468,703,392 | $ | - | ||||||
Wholly Owned Encumbered | 174 | 48,189 | 6,316,596,571 | (1,223,300,257 | ) | 5,093,296,314 | 2,114,902,657 | ||||||||||
Portfolio/Entity Encumbrances (1) | - | - | - | - | - | 1,884,355,798 | |||||||||||
Wholly Owned Properties | 477 | 127,002 | 16,996,704,638 | (3,434,704,932 | ) | 13,561,999,706 | 3,999,258,455 | ||||||||||
Partially Owned Unencumbered | 1 | 339 | 179,608,076 | (9,342,384 | ) | 170,265,692 | - | ||||||||||
Partially Owned Encumbered | 27 | 5,418 | 1,513,926,137 | (117,252,852 | ) | 1,396,673,285 | 1,037,671,184 | ||||||||||
Partially Owned Properties | 28 | 5,757 | 1,693,534,213 | (126,595,236 | ) | 1,566,938,977 | 1,037,671,184 | ||||||||||
Total Unencumbered Properties | 304 | 79,152 | 10,859,716,143 | (2,220,747,059 | ) | 8,638,969,084 | - | ||||||||||
Total Encumbered Properties | 201 | 53,607 | 7,830,522,708 | (1,340,553,109 | ) | 6,489,969,599 | 5,036,929,639 | ||||||||||
Total Consolidated Investment in Real Estate | 505 | 132,759 | $ | 18,690,238,851 | $ | (3,561,300,168 | ) | $ | 15,128,938,683 | $ | 5,036,929,639 | ||||||
(1) See attached Encumbrances Reconciliation.
S-2
Schedule III -— Real Estate and Accumulated Depreciation
Encumbrances Reconciliation
December 31, 20082010 Number of Properties See Properties Portfolio/Entity Encumbrances Encumbered by With Note: Amount EQR-Bond Partnership 6 I $ 51,670,000 EQR-Fanwell 2007 LP 7 J 223,138,000 EQR-Wellfan 2008 LP (R) 15 K 550,000,000 EQR-SOMBRA 2008 LP 18 L 543,000,000 (1) Other — — 49,875,780 (1) 46 1,417,683,780 3,345,212,105 $ 4,762,895,885 (1) Temporary letters of credit supported by the Operating Partnership’s revolving credit facility and/or a temporary guaranty from the Operating Partnership were posted as collateral in place of sold properties. Property substitutions closed in January 2011 and the letters of credit and guaranty were terminated.
Portfolio/Entity Encumbrances | Number of Properties Encumbered by | See Properties With Note: | Amount | ||||
EQR-Bond Partnership | 10 | I | $ | 88,189,000 | |||
EQR-Codelle, LP | 8* | J | 110,106,335 | ||||
EQR-FANCAP 2000A LP | 8* | K | 148,333,000 | ||||
EQR-Fankey 2004 Ltd. Pship | 4 | L | 221,589,463 | ||||
EQR-Fanwell 2007 LP | 7 | M | 223,138,000 | ||||
EQR-Wellfan 2008 LP | 15 | N | 550,000,000 | ||||
EQR-SOMBRA 2008 LP | 18* | O | 543,000,000 | ||||
Portfolio/Entity Encumbrances | 70 | 1,884,355,798 | |||||
Individual Property | 3,152,573,841 | ||||||
Total Encumbrances per | $ | 5,036,929,639 | |||||
* Collateral also includes letters of credit supported by the Company’s revolving credit facility.
S-3
Schedule III -— Real Estate and Accumulated Depreciation
(Amounts in thousands)2008, 20072010, 2009 and 20062008 are as follows: 2010 2009 2008 Balance, beginning of year $ 18,465,144 $ 18,690,239 $ 18,333,350 Acquisitions and development 1,789,948 512,977 995,026 Improvements 141,199 125,965 172,165 Dispositions and other (693,920 ) (864,037 ) (810,302 ) Balance, end of year $ 19,702,371 $ 18,465,144 $ 18,690,239 2010 2009 2008 Balance, beginning of year $ 3,877,564 $ 3,561,300 $ 3,170,125 Depreciation 673,403 600,375 602,908 Dispositions and other (213,610 ) (284,111 ) (211,733 ) Balance, end of year $ 4,337,357 $ 3,877,564 $ 3,561,300
| 2008 | 2007 | 2006 | ||||||||||
Balance, beginning of year | $ | 18,333,350 | $ | 17,235,175 | $ | 16,590,370 | ||||||
Acquisitions and development | 995,026 | 2,456,495 | 2,252,039 | |||||||||
Improvements | 172,165 | 260,371 | 265,832 | |||||||||
Dispositions and other | (810,302 | ) | (1,618,691 | ) | (1,873,066 | ) | ||||||
Balance, end of year | $ | 18,690,239 | $ | 18,333,350 | $ | 17,235,175 | ||||||
The changes in accumulated depreciation for the years ended December 31, 2008, 2007, and 2006 are as follows:
|
| |||||||||||
| 2008 | 2007 | 2006 | ||||||||||
Balance, beginning of year | $ | 3,170,125 | $ | 3,022,480 | $ | 2,888,140 | ||||||
Depreciation | 602,908 | 616,414 | 592,637 | |||||||||
Dispositions and other | (211,733 | ) | (468,769 | ) | (458,297 | ) | ||||||
Balance, end of year | $ | 3,561,300 | $ | 3,170,125 | $ | 3,022,480 | ||||||
S-4
Schedule III -— Real Estate and Accumulated Depreciation
December 31, 20082010 Cost Capitalized Subsequent to Gross Amount Carried Initial Cost to Acquisition at Close of Description Company (Improvements, net) (E) Period 12/31/10 Date of Building & Building & Building & Accumulated Investment in Real Apartment Name Location Construction Units (H) Land Fixtures Land Fixtures Land Fixtures (A) Total (B) Depreciation (C) Estate, Net at 12/31/10 (B) Encumbrances 500 West 23rd Street (fka 10 Chelsea) New York, NY (F) — $ — $ 27,382,360 $ — $ — $ — $ 27,382,360 $ 27,382,360 $ — $ 27,382,360 $ — 1210 Mass Washington, D.C. (G) 2004 144 9,213,512 36,559,189 — 285,543 9,213,512 36,844,732 46,058,244 (7,702,999 ) 38,355,245 — 1401 Joyce on Pentagon Row Arlington, VA 2004 326 9,780,000 89,680,000 — 163,567 9,780,000 89,843,567 99,623,567 (7,954,463 ) 91,669,104 — 1660 Peachtree Atlanta, GA 1999 355 7,924,126 23,602,563 — 2,032,029 7,924,126 25,634,592 33,558,718 (7,213,204 ) 26,345,514 — 2201 Pershing Drive Arlington, VA (F) — 12,054,081 2,652,636 — — 12,054,081 2,652,636 14,706,717 — 14,706,717 — 2400 M St Washington, D.C. (G) 2006 359 30,006,593 114,013,785 — 732,059 30,006,593 114,745,844 144,752,437 (21,822,792 ) 122,929,645 — 420 East 80th Street New York, NY 1961 155 39,277,000 23,026,984 — 2,501,381 39,277,000 25,528,365 64,805,365 (5,980,711 ) 58,824,654 — 425 Mass Washington, D.C. (G) 2009 559 28,150,000 138,600,000 — 1,953,014 28,150,000 140,553,014 168,703,014 (4,494,218 ) 164,208,796 — 600 Washington New York, NY (G) 2004 135 32,852,000 43,140,551 — 195,058 32,852,000 43,335,609 76,187,609 (9,485,348 ) 66,702,261 — 70 Greene Jersey City, NJ (G) 2010 480 28,170,659 239,232,094 — 103,450 28,170,659 239,335,544 267,506,203 (6,599,249 ) 260,906,954 — 71 Broadway New York, NY (G) 1997 238 22,611,600 77,492,171 — 2,960,860 22,611,600 80,453,031 103,064,631 (17,989,358 ) 85,075,273 — 777 Sixth New York, NY (G) 2002 294 65,352,706 65,747,294 — 282,143 65,352,706 66,029,437 131,382,143 (8,432,644 ) 122,949,499 — Abington Glen Abington, MA 1968 90 553,105 3,697,396 — 2,359,072 553,105 6,056,468 6,609,573 (2,794,784 ) 3,814,789 — Acacia Creek Scottsdale, AZ 1988-1994 304 3,663,473 21,172,386 — 2,814,423 3,663,473 23,986,809 27,650,282 (11,190,829 ) 16,459,453 — Arden Villas Orlando, FL 1999 336 5,500,000 28,600,796 — 3,182,624 5,500,000 31,783,420 37,283,420 (8,171,582 ) 29,111,838 — Arlington at Perimeter Center Atlanta, GA 1980 204 2,448,000 8,099,110 — 114,675 2,448,000 8,213,785 10,661,785 (1,300,791 ) 9,360,994 — Ashton, The Corona Hills, CA 1986 492 2,594,264 33,042,398 — 5,966,954 2,594,264 39,009,352 41,603,616 (18,806,334 ) 22,797,282 — Audubon Village Tampa, FL 1990 447 3,576,000 26,121,909 — 4,114,611 3,576,000 30,236,520 33,812,520 (13,268,213 ) 20,544,307 — Auvers Village Orlando, FL 1991 480 3,808,823 29,322,243 — 6,216,049 3,808,823 35,538,292 39,347,115 (15,974,356 ) 23,372,759 — Avenue Royale Jacksonville, FL 2001 200 5,000,000 17,785,388 — 917,456 5,000,000 18,702,844 23,702,844 (4,583,891 ) 19,118,953 — Avon Place, LLC Avon, CT 1973 163 1,788,943 12,440,003 — 1,531,391 1,788,943 13,971,394 15,760,337 (4,990,349 ) 10,769,988 — Ball Park Lofts Denver, CO (G) 2003 343 5,481,556 51,658,740 — 2,708,015 5,481,556 54,366,755 59,848,311 (12,931,360 ) 46,916,951 — Barrington Place Oviedo, FL 1998 233 6,990,000 15,740,825 — 2,533,678 6,990,000 18,274,503 25,264,503 (6,000,104 ) 19,264,399 — Bay Hill Long Beach, CA 2002 160 7,600,000 27,437,239 — 740,325 7,600,000 28,177,564 35,777,564 (7,029,980 ) 28,747,584 — Bella Terra I Mukilteo, WA (G) 2002 235 5,686,861 26,070,540 — 667,419 5,686,861 26,737,959 32,424,820 (7,277,028 ) 25,147,792 — Bella Vista Phoenix, AZ 1995 248 2,978,879 20,641,333 — 3,393,449 2,978,879 24,034,782 27,013,661 (11,641,771 ) 15,371,890 — Bella Vista I, II, III Combined Woodland Hills, CA 2003-2007 579 31,682,754 121,095,785 — 1,390,256 31,682,754 122,486,041 154,168,795 (23,933,139 ) 130,235,656 — Belle Arts Condominium Homes, LLC Bellevue, WA 2000 1 63,158 248,929 — (5,320 ) 63,158 243,609 306,767 — 306,767 — Beneva Place Sarasota, FL 1986 192 1,344,000 9,665,447 — 1,728,604 1,344,000 11,394,051 12,738,051 (5,284,608 ) 7,453,443 — Berkeley Land Berkeley, CA (F) — 13,908,910 801,101 — — 13,908,910 801,101 14,710,011 — 14,710,011 — Bermuda Cove Jacksonville, FL 1989 350 1,503,000 19,561,896 — 4,556,127 1,503,000 24,118,023 25,621,023 (11,324,915 ) 14,296,108 — Bishop Park Winter Park, FL 1991 324 2,592,000 17,990,436 — 3,646,274 2,592,000 21,636,710 24,228,710 (10,340,427 ) 13,888,283 — Bradford Apartments Newington, CT 1964 64 401,091 2,681,210 — 579,531 401,091 3,260,741 3,661,832 (1,301,744 ) 2,360,088 — Briar Knoll Apts Vernon, CT 1986 150 928,972 6,209,988 — 1,274,495 928,972 7,484,483 8,413,455 (3,030,004 ) 5,383,451 — Bridford Lakes II Greensboro, NC (F) — 1,100,564 792,509 — — 1,100,564 792,509 1,893,073 — 1,893,073 — Bridgewater at Wells Crossing Orange Park, FL 1986 288 2,160,000 13,347,549 — 2,010,434 2,160,000 15,357,983 17,517,983 (6,560,719 ) 10,957,264 — Brookside (MD) Frederick, MD 1993 228 2,736,000 7,934,069 — 2,157,009 2,736,000 10,091,078 12,827,078 (4,847,243 ) 7,979,835 — Brookside II (MD) Frederick, MD 1979 204 2,450,800 6,913,202 — 2,622,214 2,450,800 9,535,416 11,986,216 (4,965,160 ) 7,021,056 — Camellero Scottsdale, AZ 1979 348 1,924,900 17,324,593 — 5,445,971 1,924,900 22,770,564 24,695,464 (13,879,083 ) 10,816,381 — Carlyle Mill Alexandria, VA 2002 317 10,000,000 51,367,913 — 3,585,927 10,000,000 54,953,840 64,953,840 (15,384,028 ) 49,569,812 — Center Pointe Beaverton, OR 1996 264 3,421,535 15,708,853 — 2,605,275 3,421,535 18,314,128 21,735,663 (7,023,656 ) 14,712,007 — Centre Club Ontario, CA 1994 312 5,616,000 23,485,891 — 2,576,818 5,616,000 26,062,709 31,678,709 (9,857,007 ) 21,821,702 — Centre Club II Ontario, CA 2002 100 1,820,000 9,528,898 — 539,590 1,820,000 10,068,488 11,888,488 (3,186,170 ) 8,702,318 — Chandler Court Chandler, AZ 1987 316 1,353,100 12,175,173 — 4,308,670 1,353,100 16,483,843 17,836,943 (9,303,425 ) 8,533,518 — Chandlers Bay Kent, WA 1989 293 3,700,000 18,962,585 — 69,473 3,700,000 19,032,058 22,732,058 (2,175,442 ) 20,556,616 — Chatelaine Park Duluth, GA 1995 303 1,818,000 24,489,671 — 1,974,089 1,818,000 26,463,760 28,281,760 (11,447,801 ) 16,833,959 — Chesapeake Glen Apts (fka Greentree I, II & III) Glen Burnie, MD 1973 796 8,993,411 27,301,052 — 20,936,090 8,993,411 48,237,142 57,230,553 (22,479,872 ) 34,750,681 — Chestnut Hills Puyallup, WA 1991 157 756,300 6,806,635 — 1,360,272 756,300 8,166,907 8,923,207 (4,244,605 ) 4,678,602 — Chickasaw Crossing Orlando, FL 1986 292 2,044,000 12,366,832 — 1,786,050 2,044,000 14,152,882 16,196,882 (6,515,656 ) 9,681,226 — Chinatown Gateway Los Angeles, CA (F) — 14,791,831 11,026,473 — — 14,791,831 11,026,473 25,818,304 — 25,818,304 — Citrus Falls Tampa, FL 2003 273 8,190,000 28,894,280 — 381,158 8,190,000 29,275,438 37,465,438 (5,939,746 ) 31,525,692 — City View (GA) Atlanta, GA (G) 2003 202 6,440,800 19,993,460 — 1,256,448 6,440,800 21,249,908 27,690,708 (5,161,465 ) 22,529,243 — Clarys Crossing Columbia, MD 1984 198 891,000 15,489,721 — 1,986,718 891,000 17,476,439 18,367,439 (8,016,743 ) 10,350,696 — Cleo, The Los Angeles, CA 1989 92 6,615,467 14,829,335 — 3,663,066 6,615,467 18,492,401 25,107,868 (3,530,065 ) 21,577,803 — Club at Tanasbourne Hillsboro, OR 1990 352 3,521,300 16,257,934 — 3,046,161 3,521,300 19,304,095 22,825,395 (9,895,369 ) 12,930,026 — Club at the Green Beaverton, OR 1991 254 2,030,950 12,616,747 — 2,526,289 2,030,950 15,143,036 17,173,986 (7,815,215 ) 9,358,771 — Coconut Palm Club Coconut Creek, GA 1992 300 3,001,700 17,678,928 — 2,525,679 3,001,700 20,204,607 23,206,307 (9,321,082 ) 13,885,225 — Cortona at Dana Park Mesa, AZ 1986 222 2,028,939 12,466,128 — 2,413,182 2,028,939 14,879,310 16,908,249 (7,286,220 ) 9,622,029 — Country Gables Beaverton, OR 1991 288 1,580,500 14,215,444 — 3,412,313 1,580,500 17,627,757 19,208,257 (9,537,809 ) 9,670,448 — Cove at Boynton Beach I Boynton Beach, FL 1996 252 12,600,000 31,469,651 — 2,779,931 12,600,000 34,249,582 46,849,582 (9,526,032 ) 37,323,550 — Cove at Boynton Beach II Boynton Beach, FL 1998 296 14,800,000 37,874,719 — — 14,800,000 37,874,719 52,674,719 (10,138,327 ) 42,536,392 — Cove at Fishers Landing Vancouver, WA 1993 253 2,277,000 15,656,887 — 1,152,551 2,277,000 16,809,438 19,086,438 (5,710,162 ) 13,376,276 — Creekside Village Mountlake Terrace, WA 1987 512 2,807,600 25,270,594 — 4,629,268 2,807,600 29,899,862 32,707,462 (17,364,294 ) 15,343,168 — Crosswinds St. Petersburg, FL 1986 208 1,561,200 5,756,822 — 2,155,601 1,561,200 7,912,423 9,473,623 (4,270,769 ) 5,202,854 — Crown Court Scottsdale, AZ 1987 416 3,156,600 28,414,599 — 7,093,468 3,156,600 35,508,067 38,664,667 (17,536,796 ) 21,127,871 — Crowntree Lakes Orlando, FL 2008 352 12,009,630 44,407,977 — 128,840 12,009,630 44,536,817 56,546,447 (5,032,304 ) 51,514,143 — Cypress Lake at Waterford Orlando, FL 2001 316 7,000,000 27,654,816 — 1,474,998 7,000,000 29,129,814 36,129,814 (7,889,517 ) 28,240,297 — Dartmouth Woods Lakewood, CO 1990 201 1,609,800 10,832,754 — 1,964,282 1,609,800 12,797,036 14,406,836 (6,455,552 ) 7,951,284 — Dean Estates Taunton, MA 1984 58 498,080 3,329,560 — 622,827 498,080 3,952,387 4,450,467 (1,678,930 ) 2,771,537 — Deerwood (Corona) Corona, CA 1992 316 4,742,200 20,272,892 — 3,818,931 4,742,200 24,091,823 28,834,023 (11,726,867 ) 17,107,156 — Defoor Village Atlanta, GA 1997 156 2,966,400 10,570,210 — 1,990,444 2,966,400 12,560,654 15,527,054 (5,858,484 ) 9,668,570 —
| Description | Initial Cost to Company | Cost Capitalized Subsequent to Acquisition (Improvements, net) (E) | Gross Amount Carried at Close of Period 12/31/08 | |||||||||||||||||||||||||||||||||||
Apartment | Location | Date of Construction | Units (H) | Land | Building & Fixtures | Land | Building & Fixtures | Land | Building & Fixtures (A) | Total (B) | Accumulated Depreciation (C) | Investment in Real Estate, Net at 12/31/08 | Encumbrances | |||||||||||||||||||||||||
ERPOP Wholly Owned Unencumbered: |
| |||||||||||||||||||||||||||||||||||||
1210 Mass | Washington, D.C. | 2004 | 144 | $ | 9,213,512 | $ | 36,559,189 | $ | - | $ | 153,329 | $ | 9,213,512 | $ | 36,712,518 | $ | 45,926,030 | $ | (5,067,866 | ) | $ | 40,858,165 | $ | - | ||||||||||||||
1660 Peachtree | Atlanta, GA | 1999 | 355 | 7,924,126 | 23,602,563 | - | 1,712,518 | 7,924,126 | 25,315,081 | 33,239,207 | (5,129,965 | ) | 28,109,242 | - | ||||||||||||||||||||||||
2300 Elliott | Seattle, WA | 1992 | 92 | 796,800 | 7,173,725 | - | 4,937,617 | 796,800 | 12,111,342 | 12,908,142 | (6,946,085 | ) | 5,962,057 | - | ||||||||||||||||||||||||
2400 M St | Washington, D.C. | 2006 | 359 | 30,006,593 | 113,763,785 | - | 508,240 | 30,006,593 | 114,272,025 | 144,278,618 | (12,469,372 | ) | 131,809,247 | - | ||||||||||||||||||||||||
420 East 80th | New York, NY | 1961 | 155 | 39,277,000 | 23,026,984 | - | 1,651,277 | 39,277,000 | 24,678,261 | 63,955,261 | (3,295,856 | ) | 60,659,405 | - | ||||||||||||||||||||||||
600 Washington | New York, NY | 2004 | 135 | 32,852,000 | 43,140,551 | - | 118,083 | 32,852,000 | 43,258,634 | 76,110,634 | (6,046,770 | ) | 70,063,863 | - | ||||||||||||||||||||||||
70 Greene | Jersey City, NJ | (F) | - | 28,170,659 | 167,955,344 | - | - | 28,170,659 | 167,955,344 | 196,126,003 | - | 196,126,003 | - | |||||||||||||||||||||||||
71 Broadway | New York, NY | 1997 | 238 | 22,611,600 | 77,492,171 | - | 1,207,324 | 22,611,600 | 78,699,495 | 101,311,095 | (12,305,450 | ) | 89,005,645 | - | ||||||||||||||||||||||||
Abington Glen | Abington, MA | 1968 | 90 | 553,105 | 3,697,396 | - | 2,195,843 | 553,105 | 5,893,239 | 6,446,344 | (2,043,182 | ) | 4,403,163 | - | ||||||||||||||||||||||||
Acacia Creek | Scottsdale, AZ | 1988-1994 | 304 | 3,663,473 | 21,172,386 | - | 2,280,640 | 3,663,473 | 23,453,026 | 27,116,499 | (9,338,430 | ) | 17,778,069 | - | ||||||||||||||||||||||||
Agliano | Tampa, FL | (F) | - | 5,000,000 | - | - | - | 5,000,000 | - | 5,000,000 | - | 5,000,000 | - | |||||||||||||||||||||||||
Arrington Place | Issaquah, WA | 1988 | 63 | 2,858,404 | 7,055,079 | - | 2,297,065 | 2,858,404 | 9,352,144 | 12,210,548 | - | 12,210,548 | - | |||||||||||||||||||||||||
Ashley Park at | Raleigh, NC | 2002 | 374 | 5,610,000 | 31,467,489 | - | 2,062,154 | 5,610,000 | 33,529,643 | 39,139,643 | (5,693,533 | ) | 33,446,110 | - | ||||||||||||||||||||||||
Ashton, The | Corona Hills, CA | 1986 | 492 | 2,594,264 | 33,042,398 | - | 5,355,182 | 2,594,264 | 38,397,579 | 40,991,843 | (15,506,897 | ) | 25,484,946 | - | ||||||||||||||||||||||||
Aspen Crossing | Silver Spring, | 1979 | 192 | 2,880,000 | 8,551,377 | - | 2,978,084 | 2,880,000 | 11,529,462 | 14,409,462 | (4,897,777 | ) | 9,511,684 | - | ||||||||||||||||||||||||
Audubon Village | Tampa, FL | 1990 | 447 | 3,576,000 | 26,121,909 | - | 2,920,077 | 3,576,000 | 29,041,985 | 32,617,985 | (10,788,907 | ) | 21,829,079 | - | ||||||||||||||||||||||||
Autumn River | Raleigh, NC | 2002 | 284 | 3,408,000 | 20,890,457 | - | 866,640 | 3,408,000 | 21,757,096 | 25,165,096 | (4,551,675 | ) | 20,613,422 | - | ||||||||||||||||||||||||
Auvers Village | Orlando, FL | 1991 | 480 | 3,838,927 | 29,322,243 | - | 5,499,427 | 3,838,927 | 34,821,670 | 38,660,597 | (12,822,706 | ) | 25,837,891 | - | ||||||||||||||||||||||||
Avenue Royale | Jacksonville, FL | 2001 | 200 | 5,000,000 | 17,785,388 | - | 618,454 | 5,000,000 | 18,403,842 | 23,403,842 | (3,030,994 | ) | 20,372,847 | - | ||||||||||||||||||||||||
Avon Place | Avon, CT | 1973 | 163 | 1,788,943 | 12,440,003 | - | 1,390,965 | 1,788,943 | 13,830,968 | 15,619,911 | (4,090,688 | ) | 11,529,223 | - | ||||||||||||||||||||||||
Azure Creek | Phoenix, AZ | 2001 | 160 | 8,778,000 | 17,840,790 | - | 594,260 | 8,778,000 | 18,435,051 | 27,213,051 | (2,761,366 | ) | 24,451,685 | - | ||||||||||||||||||||||||
Barrington Place | Oviedo, FL | 1998 | 233 | 6,990,000 | 15,740,825 | - | 2,344,835 | 6,990,000 | 18,085,660 | 25,075,660 | (3,368,801 | ) | 21,706,859 | - | ||||||||||||||||||||||||
Bay Ridge | San Pedro, CA | 1987 | 60 | 2,401,300 | 2,176,963 | - | 705,068 | 2,401,300 | 2,882,032 | 5,283,332 | (1,329,734 | ) | 3,953,598 | - | ||||||||||||||||||||||||
Bayside at the | Gilbert, AZ | 1989 | 272 | 3,306,484 | 15,573,006 | - | 2,504,474 | 3,306,484 | 18,077,480 | 21,383,964 | (7,536,121 | ) | 13,847,843 | - | ||||||||||||||||||||||||
Bella Vista | Phoenix, AZ | 1995 | 248 | 2,978,879 | 20,641,333 | - | 3,207,452 | 2,978,879 | 23,848,785 | 26,827,664 | (9,313,554 | ) | 17,514,110 | - | ||||||||||||||||||||||||
Bella Vista | Boca Raton, FL | 1985 | 392 | 11,760,000 | 20,190,252 | - | 8,219,963 | 11,760,000 | 28,410,215 | 40,170,215 | (9,753,092 | ) | 30,417,124 | - | ||||||||||||||||||||||||
Bella Vista I, II, III | Woodland Hills, | 2003-2007 | 579 | 31,682,754 | 121,068,370 | - | 987,809 | 31,682,754 | 122,056,179 | 153,738,933 | (15,009,651 | ) | 138,729,282 | - | ||||||||||||||||||||||||
Belle Arts | Bellevue, WA | 2000 | 1 | 63,158 | 248,929 | - | (5,541 | ) | 63,158 | 243,387 | 306,545 | - | 306,545 | - | ||||||||||||||||||||||||
Bellevue Meadows | Bellevue, WA | 1983 | 180 | 4,507,100 | 12,574,814 | - | 3,833,002 | 4,507,100 | 16,407,816 | 20,914,916 | (5,737,411 | ) | 15,177,505 | - | ||||||||||||||||||||||||
Beneva Place | Sarasota, FL | 1986 | 192 | 1,344,000 | 9,665,447 | - | 1,523,021 | 1,344,000 | 11,188,468 | 12,532,468 | (4,306,341 | ) | 8,226,127 | - | ||||||||||||||||||||||||
Bermuda Cove | Jacksonville, FL | 1989 | 350 | 1,503,000 | 19,561,896 | - | 4,076,735 | 1,503,000 | 23,638,631 | 25,141,631 | (9,157,733 | ) | 15,983,898 | - | ||||||||||||||||||||||||
Bishop Park | Winter Park, FL | 1991 | 324 | 2,592,000 | 17,990,436 | - | 3,190,324 | 2,592,000 | 21,180,760 | 23,772,760 | (8,625,382 | ) | 15,147,378 | - | ||||||||||||||||||||||||
Bradford Apartments | Newington, CT | 1964 | 64 | 401,091 | 2,681,210 | - | 457,064 | 401,091 | 3,138,274 | 3,539,365 | (1,017,170 | ) | 2,522,195 | - | ||||||||||||||||||||||||
Brentwood | Vancouver, WA | 1990 | 296 | 1,357,221 | 12,202,521 | - | 2,420,695 | 1,357,221 | 14,623,216 | 15,980,438 | (7,424,760 | ) | 8,555,678 | - | ||||||||||||||||||||||||
Bridford Lakes II | Greensboro, NC | (F) | - | 1,100,564 | 792,509 | - | - | 1,100,564 | 792,509 | 1,893,073 | - | 1,893,073 | - | |||||||||||||||||||||||||
Bridgewater at | Orange Park, FL | 1986 | 288 | 2,160,000 | 13,347,549 | - | 1,678,270 | 2,160,000 | 15,025,818 | 17,185,818 | (5,269,173 | ) | 11,916,646 | - | ||||||||||||||||||||||||
Brookside (CO) | Boulder, CO | 1993 | 144 | 3,600,400 | 10,211,159 | - | 785,665 | 3,600,400 | 10,996,824 | 14,597,224 | (4,199,023 | ) | 10,398,201 | - | ||||||||||||||||||||||||
Brookside II (MD) | Frederick, MD | 1979 | 204 | 2,450,800 | 6,913,202 | - | 2,286,724 | 2,450,800 | 9,199,927 | 11,650,727 | (4,035,109 | ) | 7,615,618 | - | ||||||||||||||||||||||||
Brooksyde Apts | West Hartford, | 1945 | 80 | 594,711 | 3,975,523 | - | 574,724 | 594,711 | 4,550,246 | 5,144,957 | (1,460,762 | ) | 3,684,195 | - | ||||||||||||||||||||||||
Cambridge Estates | Norwich, CT | 1977 | 92 | 588,206 | 3,945,265 | - | 556,023 | 588,206 | 4,501,287 | 5,089,493 | (1,442,358 | ) | 3,647,135 | - | ||||||||||||||||||||||||
Camellero | Scottsdale, AZ | 1979 | 348 | 1,924,900 | 17,324,593 | - | 5,116,214 | 1,924,900 | 22,440,807 | 24,365,707 | (12,225,789 | ) | 12,139,918 | - | ||||||||||||||||||||||||
Canyon Crest | Santa Clarita, CA | 1993 | 158 | 2,370,000 | 10,141,878 | - | 2,042,078 | 2,370,000 | 12,183,956 | 14,553,956 | (4,425,890 | ) | 10,128,067 | - | ||||||||||||||||||||||||
Canyon Ridge | San Diego, CA | 1989 | 162 | 4,869,448 | 11,955,064 | - | 1,553,475 | 4,869,448 | 13,508,539 | 18,377,987 | (5,430,932 | ) | 12,947,055 | - | ||||||||||||||||||||||||
Carlyle | Dallas, TX | 1993 | 180 | 1,890,000 | 14,155,000 | - | 922,841 | 1,890,000 | 15,077,841 | 16,967,841 | (3,507,110 | ) | 13,460,731 | - | ||||||||||||||||||||||||
Carlyle Mill | Alexandria, VA | 2002 | 317 | 10,000,000 | 51,367,913 | - | 3,324,534 | 10,000,000 | 54,692,448 | 64,692,448 | (11,248,531 | ) | 53,443,917 | - | ||||||||||||||||||||||||
Casa Capricorn | San Diego, CA | 1981 | 192 | 1,262,700 | 11,365,093 | - | 3,158,945 | 1,262,700 | 14,524,038 | 15,786,738 | (6,635,341 | ) | 9,151,397 | - | ||||||||||||||||||||||||
Casa Ruiz | San Diego, CA | 1976-1986 | 196 | 3,922,400 | 9,389,153 | - | 3,094,434 | 3,922,400 | 12,483,588 | 16,405,988 | (5,459,641 | ) | 10,946,346 | - | ||||||||||||||||||||||||
Cascade at | Alexandria, VA | 1990 | 277 | 3,603,400 | 19,657,554 | - | 4,916,100 | 3,603,400 | 24,573,654 | 28,177,054 | (10,403,738 | ) | 17,773,316 | - | ||||||||||||||||||||||||
Center Pointe | Beaverton, OR | 1996 | 264 | 3,421,535 | 15,708,853 | - | 2,387,768 | 3,421,535 | 18,096,621 | 21,518,156 | (5,479,396 | ) | 16,038,759 | - | ||||||||||||||||||||||||
Centre Club | Ontario, CA | 1994 | 312 | 5,616,000 | 23,485,891 | - | 2,123,845 | 5,616,000 | 25,609,736 | 31,225,736 | (7,815,929 | ) | 23,409,807 | - | ||||||||||||||||||||||||
Centre Club II | Ontario, CA | 2002 | 100 | 1,820,000 | 9,528,898 | - | 402,209 | 1,820,000 | 9,931,106 | 11,751,106 | (2,430,671 | ) | 9,320,435 | - | ||||||||||||||||||||||||
Chandler Court | Chandler, AZ | 1987 | 316 | 1,353,100 | 12,175,173 | - | 3,938,495 | 1,353,100 | 16,113,668 | 17,466,768 | (7,984,448 | ) | 9,482,319 | - | ||||||||||||||||||||||||
Chatelaine Park | Duluth, GA | 1995 | 303 | 1,818,000 | 24,489,671 | - | 1,586,741 | 1,818,000 | 26,076,412 | 27,894,412 | (9,450,923 | ) | 18,443,489 | - | ||||||||||||||||||||||||
Chesapeake Glen | Glen Burnie, MD | 1973 | 796 | 8,993,411 | 27,301,052 | - | 19,583,304 | 8,993,411 | 46,884,356 | 55,877,767 | (16,477,188 | ) | 39,400,579 | - | ||||||||||||||||||||||||
Chestnut Hills | Puyallup, WA | 1991 | 157 | 756,300 | 6,806,635 | - | 1,182,619 | 756,300 | 7,989,254 | 8,745,554 | (3,577,172 | ) | 5,168,382 | - | ||||||||||||||||||||||||
Chickasaw Crossing | Orlando, FL | 1986 | 292 | 2,044,000 | 12,366,832 | - | 1,490,455 | 2,044,000 | 13,857,287 | 15,901,287 | (5,385,880 | ) | 10,515,407 | - | ||||||||||||||||||||||||
Chinatown Gateway | Los Angeles, CA | (F) | - | 14,791,831 | 9,684,936 | - | - | 14,791,831 | 9,684,936 | 24,476,767 | - | 24,476,767 | - | |||||||||||||||||||||||||
Citrus Falls | Tampa, FL | 2003 | 273 | 8,190,000 | 28,894,280 | - | 211,240 | 8,190,000 | 29,105,520 | 37,295,520 | (2,760,260 | ) | 34,535,259 | - | ||||||||||||||||||||||||
City View (GA) | Atlanta, GA (G) | 2003 | 202 | 6,440,800 | 19,992,718 | - | 987,157 | 6,440,800 | 20,979,875 | 27,420,675 | (3,423,445 | ) | 23,997,230 | - | ||||||||||||||||||||||||
Clarion | Decatur, GA | 1990 | 217 | 1,504,300 | 13,537,919 | - | 1,808,154 | 1,504,300 | 15,346,074 | 16,850,374 | (6,301,194 | ) | 10,549,179 | - | ||||||||||||||||||||||||
Clarys Crossing | Columbia, MD | 1984 | 198 | 891,000 | 15,489,721 | - | 1,820,082 | 891,000 | 17,309,803 | 18,200,803 | (6,663,776 | ) | 11,537,027 | - | ||||||||||||||||||||||||
Cleo, The | Los Angeles, CA | 1989 | 92 | 6,615,467 | 14,825,495 | - | 3,428,877 | 6,615,467 | 18,254,372 | 24,869,839 | (1,221,812 | ) | 23,648,028 | - | ||||||||||||||||||||||||
Club at the Green | Beaverton, OR | 1991 | 254 | 2,030,950 | 12,616,747 | - | 2,166,457 | 2,030,950 | 14,783,204 | 16,814,154 | (6,660,636 | ) | 10,153,518 | - | ||||||||||||||||||||||||
Coachlight Village | Agawam, MA | 1967 | 88 | 501,726 | 3,353,933 | - | 317,416 | 501,726 | 3,671,349 | 4,173,075 | (1,182,613 | ) | 2,990,462 | - | ||||||||||||||||||||||||
Coconut Palm Club | Coconut Creek, | 1992 | 300 | 3,001,700 | 17,678,928 | - | 2,019,630 | 3,001,700 | 19,698,558 | 22,700,258 | (7,690,873 | ) | 15,009,386 | - | ||||||||||||||||||||||||
Colonial Village | Plainville, CT | 1968 | 104 | 693,575 | 4,636,410 | - | 786,805 | 693,575 | 5,423,215 | 6,116,790 | (1,805,630 | ) | 4,311,160 | - | ||||||||||||||||||||||||
Cortona at Dana | Mesa, AZ | 1986 | 222 | 2,028,939 | 12,466,128 | - | 2,050,545 | 2,028,939 | 14,516,673 | 16,545,612 | (6,090,460 | ) | 10,455,152 | - | ||||||||||||||||||||||||
Country Gables | Beaverton, OR | 1991 | 288 | 1,580,500 | 14,215,444 | - | 3,156,104 | 1,580,500 | 17,371,548 | 18,952,048 | (7,996,586 | ) | 10,955,461 | - | ||||||||||||||||||||||||
Cove at Boynton | Boynton Beach, | 1996 | 252 | 12,600,000 | 31,590,391 | - | 1,641,016 | 12,600,000 | 33,231,407 | 45,831,407 | (5,715,223 | ) | 40,116,184 | - | ||||||||||||||||||||||||
Cove at Boynton | Boynton Beach, | 1998 | 296 | 14,800,000 | 37,874,719 | - | - | 14,800,000 | 37,874,719 | 52,674,719 | (6,392,520 | ) | 46,282,198 | - | ||||||||||||||||||||||||
Cove at Fishers | Vancouver, WA | 1993 | 253 | 2,277,000 | 15,656,887 | - | 959,161 | 2,277,000 | 16,616,048 | 18,893,048 | (4,472,049 | ) | 14,420,999 | - | ||||||||||||||||||||||||
Creekside Village | Mountlake | 1987 | 512 | 2,807,600 | 25,270,594 | - | 4,024,584 | 2,807,600 | 29,295,178 | 32,102,778 | (15,078,709 | ) | 17,024,070 | - | ||||||||||||||||||||||||
Crosswinds | St. Petersburg, | 1986 | 208 | 1,561,200 | 5,756,822 | - | 1,832,347 | 1,561,200 | 7,589,169 | 9,150,369 | (3,551,498 | ) | 5,598,871 | - | ||||||||||||||||||||||||
Crowntree Lakes | Orlando, FL | 2008 | 352 | 12,009,630 | 44,670,029 | - | 15,829 | 12,009,630 | 44,685,857 | 56,695,487 | (996,404 | ) | 55,699,083 | - | ||||||||||||||||||||||||
Crystal Village | Attleboro, MA | 1974 | 91 | 1,369,000 | 4,989,028 | - | 2,480,460 | 1,369,000 | 7,469,488 | 8,838,488 | (3,343,589 | ) | 5,494,899 | - | ||||||||||||||||||||||||
Cypress Lake at | Orlando, FL | 2001 | 316 | 7,000,000 | 27,654,816 | - | 1,075,057 | 7,000,000 | 28,729,873 | 35,729,873 | (5,679,621 | ) | 30,050,252 | - | ||||||||||||||||||||||||
Dartmouth Woods | Lakewood, CO | 1990 | 201 | 1,609,800 | 10,832,754 | - | 1,517,738 | 1,609,800 | 12,350,492 | 13,960,292 | (5,457,099 | ) | 8,503,193 | - | ||||||||||||||||||||||||
Dean Estates | Taunton, MA | 1984 | 58 | 498,080 | 3,329,560 | - | 585,906 | 498,080 | 3,915,466 | 4,413,546 | (1,312,622 | ) | 3,100,924 | - | ||||||||||||||||||||||||
Defoor Village | Atlanta, GA | 1997 | 156 | 2,966,400 | 10,570,210 | - | 1,864,856 | 2,966,400 | 12,435,067 | 15,401,467 | (4,785,594 | ) | 10,615,873 | - | ||||||||||||||||||||||||
Desert Homes | Phoenix, AZ | 1982 | 412 | 1,481,050 | 13,390,249 | - | 4,099,871 | 1,481,050 | 17,490,120 | 18,971,170 | (8,730,173 | ) | 10,240,997 | - | ||||||||||||||||||||||||
Eagle Canyon | Chino Hills, CA | 1985 | 252 | 1,808,900 | 16,274,361 | - | 4,204,489 | 1,808,900 | 20,478,850 | 22,287,750 | (8,547,706 | ) | 13,740,044 | - | ||||||||||||||||||||||||
S-5
Schedule III -— Real Estate and Accumulated Depreciation
December 31, 20082010 Cost Capitalized Subsequent to Gross Amount Carried Initial Cost to Acquisition at Close of Description Company (Improvements, net) (E) Period 12/31/10 Date of Building & Building & Building & Accumulated Investment in Real Apartment Name Location Construction Units (H) Land Fixtures Land Fixtures Land Fixtures (A) Total (B) Depreciation (C) Estate, Net at 12/31/10 (B) Encumbrances Del Mar Ridge San Diego, CA 1998 181 7,801,824 36,948,176 — 2,298,593 7,801,824 39,246,769 47,048,593 (3,116,754 ) 43,931,839 — Desert Homes Phoenix, AZ 1982 412 1,481,050 13,390,249 — 4,652,484 1,481,050 18,042,733 19,523,783 (10,220,322 ) 9,303,461 — Eagle Canyon Chino Hills, CA 1985 252 1,808,900 16,274,361 — 4,994,045 1,808,900 21,268,406 23,077,306 (10,622,403 ) 12,454,903 — Ellipse at Government Center Fairfax, VA 1989 404 19,433,000 56,816,266 — 2,245,450 19,433,000 59,061,716 78,494,716 (7,973,317 ) 70,521,399 — Emerson Place Boston, MA (G) 1962 444 14,855,000 57,566,636 — 15,120,573 14,855,000 72,687,209 87,542,209 (36,608,983 ) 50,933,226 — Enclave at Lake Underhill Orlando, FL 1989 312 9,359,750 29,539,650 — 1,690,403 9,359,750 31,230,053 40,589,803 (7,327,341 ) 33,262,462 — Enclave at Waterways Deerfield Beach, FL 1998 300 15,000,000 33,194,576 — 843,037 15,000,000 34,037,613 49,037,613 (8,268,775 ) 40,768,838 — Enclave at Winston Park Coconut Creek, FL 1995 278 5,560,000 19,939,324 — 2,101,199 5,560,000 22,040,523 27,600,523 (7,511,989 ) 20,088,534 — Enclave, The Tempe, AZ 1994 204 1,500,192 19,281,399 — 1,333,483 1,500,192 20,614,882 22,115,074 (9,498,305 ) 12,616,769 — Estates at Phipps Atlanta, GA 1996 234 9,360,000 29,705,236 — 3,780,696 9,360,000 33,485,932 42,845,932 (9,625,684 ) 33,220,248 — Estates at Wellington Green Wellington, FL 2003 400 20,000,000 64,790,850 — 1,719,926 20,000,000 66,510,776 86,510,776 (15,486,015 ) 71,024,761 — Fairland Gardens Silver Spring, MD 1981 400 6,000,000 19,972,183 — 5,994,235 6,000,000 25,966,418 31,966,418 (12,839,143 ) 19,127,275 — Four Winds Fall River, MA 1987 168 1,370,843 9,163,804 — 1,961,290 1,370,843 11,125,094 12,495,937 (4,317,329 ) 8,178,608 — Fox Hill Apartments Enfield, CT 1974 168 1,129,018 7,547,256 — 1,410,030 1,129,018 8,957,286 10,086,304 (3,473,400 ) 6,612,904 — Fox Run (WA) Federal Way, WA 1988 144 626,637 5,765,018 — 1,644,476 626,637 7,409,494 8,036,131 (4,492,269 ) 3,543,862 — Fox Run II (WA) Federal Way, WA 1988 18 80,000 1,286,139 — 53,086 80,000 1,339,225 1,419,225 (389,957 ) 1,029,268 — Gables Grand Plaza Coral Gables, FL (G) 1998 195 — 44,601,000 — 3,174,122 — 47,775,122 47,775,122 (12,598,590 ) 35,176,532 — Gallery, The Hermosa Beach, CA 1971 168 18,144,000 46,567,941 — 1,719,605 18,144,000 48,287,546 66,431,546 (9,535,678 ) 56,895,868 — Gatehouse at Pine Lake Pembroke Pines, FL 1990 296 1,896,600 17,070,795 — 3,174,037 1,896,600 20,244,832 22,141,432 (10,411,240 ) 11,730,192 — Gatehouse on the Green Plantation, FL 1990 312 2,228,200 20,056,270 — 6,485,962 2,228,200 26,542,232 28,770,432 (12,580,475 ) 16,189,957 — Gates of Redmond Redmond, WA 1979 180 2,306,100 12,064,015 — 4,624,741 2,306,100 16,688,756 18,994,856 (7,467,775 ) 11,527,081 — Gatewood Pleasanton, CA 1985 200 6,796,511 20,249,392 — 3,558,873 6,796,511 23,808,265 30,604,776 (6,922,485 ) 23,682,291 — Governors Green Bowie, MD 1999 478 19,845,000 73,335,916 — 513,833 19,845,000 73,849,749 93,694,749 (10,600,450 ) 83,094,299 — Greenfield Village Rocky Hill , CT 1965 151 911,534 6,093,418 — 623,523 911,534 6,716,941 7,628,475 (2,669,219 ) 4,959,256 — Greenhouse — Roswell Roswell, GA 1985 236 1,220,000 10,974,727 — 2,862,866 1,220,000 13,837,593 15,057,593 (8,334,268 ) 6,723,325 — Hamilton Villas Beverly Hills, CA 1990 35 7,772,000 16,864,269 — 1,197,789 7,772,000 18,062,058 25,834,058 (2,088,921 ) 23,745,137 — Hammocks Place Miami, FL 1986 296 319,180 12,513,467 — 3,361,988 319,180 15,875,455 16,194,635 (9,682,288 ) 6,512,347 — Hampshire Place Los Angeles, CA 1989 259 10,806,000 30,335,330 — 1,855,750 10,806,000 32,191,080 42,997,080 (8,142,603 ) 34,854,477 — Hamptons Puyallup, WA 1991 230 1,119,200 10,075,844 — 1,812,434 1,119,200 11,888,278 13,007,478 (6,014,780 ) 6,992,698 — Heritage Ridge Lynwood, WA 1999 197 6,895,000 18,983,597 — 492,899 6,895,000 19,476,496 26,371,496 (5,168,705 ) 21,202,791 — Heritage, The Phoenix, AZ 1995 204 1,209,705 13,136,903 — 1,360,019 1,209,705 14,496,922 15,706,627 (6,803,317 ) 8,903,310 — Heron Pointe Boynton Beach, FL 1989 192 1,546,700 7,774,676 — 1,923,892 1,546,700 9,698,568 11,245,268 (5,039,618 ) 6,205,650 — High Meadow Ellington, CT 1975 100 583,679 3,901,774 — 756,263 583,679 4,658,037 5,241,716 (1,793,920 ) 3,447,796 — Highland Glen Westwood, MA 1979 180 2,229,095 16,828,153 — 2,239,543 2,229,095 19,067,696 21,296,791 (7,067,157 ) 14,229,634 — Highland Glen II Westwood, MA 2007 102 — 19,875,857 — 80,545 — 19,956,402 19,956,402 (2,819,615 ) 17,136,787 — Highlands at South Plainfield South Plainfield, NJ 2000 252 10,080,000 37,526,912 — 733,896 10,080,000 38,260,808 48,340,808 (7,925,678 ) 40,415,130 — Highlands, The Scottsdale, AZ 1990 272 11,823,840 31,990,970 — 2,805,757 11,823,840 34,796,727 46,620,567 (7,688,227 ) 38,932,340 — Hudson Crossing New York, NY (G) 2003 259 23,420,000 70,086,976 — 748,402 23,420,000 70,835,378 94,255,378 (16,184,367 ) 78,071,011 — Hudson Pointe Jersey City, NJ 2003 182 5,148,500 41,149,117 — 1,048,724 5,148,500 42,197,841 47,346,341 (10,223,470 ) 37,122,871 — Hunt Club II Charlotte, NC (F) — 100,000 — — — 100,000 — 100,000 — 100,000 — Huntington Park Everett, WA 1991 381 1,597,500 14,367,864 — 3,620,694 1,597,500 17,988,558 19,586,058 (10,893,191 ) 8,692,867 — Indian Bend Scottsdale, AZ 1973 278 1,075,700 9,800,330 — 3,042,609 1,075,700 12,842,939 13,918,639 (8,082,539 ) 5,836,100 — Iron Horse Park Pleasant Hill, CA 1973 252 15,000,000 24,335,549 — 7,755,418 15,000,000 32,090,967 47,090,967 (8,103,335 ) 38,987,632 — Isle at Arrowhead Ranch Glendale, AZ 1996 256 1,650,237 19,593,123 — 1,660,272 1,650,237 21,253,395 22,903,632 (9,860,515 ) 13,043,117 — Kempton Downs Gresham, OR 1990 278 1,217,349 10,943,372 — 2,838,147 1,217,349 13,781,519 14,998,868 (7,994,662 ) 7,004,206 — Kenwood Mews Burbank, CA 1991 141 14,100,000 24,662,883 — 1,627,860 14,100,000 26,290,743 40,390,743 (5,165,397 ) 35,225,346 — Key Isle at Windermere Ocoee, FL 2000 282 8,460,000 31,761,470 — 1,197,975 8,460,000 32,959,445 41,419,445 (7,409,728 ) 34,009,717 — Key Isle at Windermere II Ocoee, FL 2008 165 3,306,286 24,519,643 — 21,547 3,306,286 24,541,190 27,847,476 (2,038,084 ) 25,809,392 — Kings Colony (FL) Miami, FL 1986 480 19,200,000 48,379,586 — 2,692,770 19,200,000 51,072,356 70,272,356 (12,387,179 ) 57,885,177 — La Mirage San Diego, CA 1988/1992 1,070 28,895,200 95,567,943 — 13,968,700 28,895,200 109,536,643 138,431,843 (51,916,782 ) 86,515,061 — La Mirage IV San Diego, CA 2001 340 6,000,000 47,449,353 — 2,944,380 6,000,000 50,393,733 56,393,733 (16,239,415 ) 40,154,318 — Laguna Clara Santa Clara, CA 1972 264 13,642,420 29,707,475 — 3,329,323 13,642,420 33,036,798 46,679,218 (9,100,501 ) 37,578,717 — Lake Buena Vista Combined Orlando, FL 2000/2002 672 23,520,000 75,068,206 — 3,594,116 23,520,000 78,662,322 102,182,322 (17,301,402 ) 84,880,920 — Landings at Pembroke Lakes Pembroke Pines, FL 1989 358 17,900,000 24,460,989 — 4,881,752 17,900,000 29,342,741 47,242,741 (7,519,945 ) 39,722,796 — Landings at Port Imperial W. New York, NJ 1999 276 27,246,045 37,741,050 — 6,567,661 27,246,045 44,308,711 71,554,756 (15,348,539 ) 56,206,217 — Las Colinas at Black Canyon Phoenix, AZ 2008 304 9,000,000 35,917,811 — 115,519 9,000,000 36,033,330 45,033,330 (4,435,319 ) 40,598,011 — Legacy at Highlands Ranch Highlands Ranch, CO 1999 422 6,330,000 37,557,013 — 1,466,728 6,330,000 39,023,741 45,353,741 (9,805,338 ) 35,548,403 — Legacy Park Central Concord, CA 2003 259 6,469,230 46,745,854 — 295,479 6,469,230 47,041,333 53,510,563 (10,789,289 ) 42,721,274 — Lexington Farm Alpharetta, GA 1995 352 3,521,900 22,888,305 — 2,476,212 3,521,900 25,364,517 28,886,417 (11,200,145 ) 17,686,272 — Lexington Park Orlando, FL 1988 252 2,016,000 12,346,726 — 2,450,467 2,016,000 14,797,193 16,813,193 (7,062,512 ) 9,750,681 — Little Cottonwoods Tempe, AZ 1984 379 3,050,133 26,991,689 — 3,737,391 3,050,133 30,729,080 33,779,213 (14,499,829 ) 19,279,384 — Longacre House New York, NY (G) 2000 293 73,170,045 53,962,510 — 125,953 73,170,045 54,088,463 127,258,508 (7,505,448 ) 119,753,060 — Longfellow Place Boston, MA (G) 1975 710 53,164,160 183,940,619 — 47,318,604 53,164,160 231,259,223 284,423,383 (97,449,615 ) 186,973,768 — Longwood Decatur, GA 1992 268 1,454,048 13,087,393 — 2,002,602 1,454,048 15,089,995 16,544,043 (8,825,354 ) 7,718,689 — Madison, The Alexandria, VA (F) — 15,261,108 1,080,330 — — 15,261,108 1,080,330 16,341,438 — 16,341,438 — Marbrisa Tampa, FL 1984 224 2,240,000 7,183,561 — 79,738 2,240,000 7,263,299 9,503,299 (1,234,564 ) 8,268,735 — Mariners Wharf Orange Park, FL 1989 272 1,861,200 16,744,951 — 3,244,046 1,861,200 19,988,997 21,850,197 (9,702,938 ) 12,147,259 — Market Street Landing Seattle, WA (F) — 12,542,418 297,637 — — 12,542,418 297,637 12,840,055 — 12,840,055 — Marquessa Corona Hills, CA 1992 336 6,888,500 21,604,584 — 2,726,408 6,888,500 24,330,992 31,219,492 (11,834,160 ) 19,385,332 — Martha Lake Lynnwood, WA 1991 155 821,200 7,405,070 — 1,985,277 821,200 9,390,347 10,211,547 (4,980,064 ) 5,231,483 — Martine, The Bellevue, WA 1984 67 3,200,000 9,616,264 — 2,642,670 3,200,000 12,258,934 15,458,934 (1,957,800 ) 13,501,134 — Merritt at Satellite Place Duluth, GA 1999 424 3,400,000 30,115,674 — 2,440,228 3,400,000 32,555,902 35,955,902 (13,072,220 ) 22,883,682 — Mill Pond Millersville, MD 1984 240 2,880,000 8,468,014 — 2,718,776 2,880,000 11,186,790 14,066,790 (5,505,405 ) 8,561,385 — Mira Flores Palm Beach Gardens, FL 1996 352 7,039,313 22,515,299 — 2,298,916 7,039,313 24,814,215 31,853,528 (8,485,263 ) 23,368,265 —
| Description | Initial Cost to Company | Cost Capitalized Subsequent to Acquisition (Improvements, net) (E) | Gross Amount Carried at Close of Period 12/31/08 | ||||||||||||||||||||||||
Apartment | Location | Date of Construction | Units (H) | Land | Building & Fixtures | Land | Building & Fixtures | Land | Building & Fixtures (A) | Total (B) | Accumulated Depreciation (C) | Investment in Real Estate, Net at 12/31/08 | Encumbrances | ||||||||||||||
Ellipse at Government | Fairfax, VA | 1989 | 404 | 19,433,000 | 56,816,266 | - | 946,154 | 19,433,000 | 57,762,420 | 77,195,420 | (2,741,397 | ) | 74,454,023 | - | |||||||||||||
Emerson Place | Boston, MA | 1962 | 444 | 14,855,000 | 57,566,636 | - | 13,880,196 | 14,855,000 | 71,446,832 | 86,301,832 | (30,704,352 | ) | 55,597,480 | - | |||||||||||||
Enclave at Lake Underhill | Orlando, FL | 1989 | 312 | 9,359,750 | 29,539,650 | - | 1,090,893 | 9,359,750 | 30,630,543 | 39,990,293 | (3,978,304 | ) | 36,011,988 | - | |||||||||||||
Enclave at Waterways | Deerfield | 1998 | 300 | 15,000,000 | 33,194,576 | - | 707,033 | 15,000,000 | 33,901,609 | 48,901,609 | (4,583,694 | ) | 44,317,915 | - | |||||||||||||
Enclave at Winston Park | Coconut | 1995 | 278 | 5,560,000 | 19,939,324 | - | 1,529,034 | 5,560,000 | 21,468,358 | 27,028,358 | (5,758,816 | ) | 21,269,542 | - | |||||||||||||
Enclave, The | Tempe, AZ | 1994 | 204 | 1,500,192 | 19,281,399 | - | 1,190,860 | 1,500,192 | 20,472,258 | 21,972,450 | (7,972,785 | ) | 13,999,665 | - | |||||||||||||
Estates at Phipps | Atlanta, GA | 1996 | 234 | 9,360,000 | 29,705,236 | - | 3,376,190 | 9,360,000 | 33,081,426 | 42,441,426 | (5,857,411 | ) | 36,584,015 | - | |||||||||||||
Estates at Wellington | Wellington, | 2003 | 400 | 20,000,000 | 64,790,850 | - | 962,255 | 20,000,000 | 65,753,105 | 85,753,105 | (9,092,626 | ) | 76,660,479 | - | |||||||||||||
Fairfield | Stamford, | 1996 | 263 | 6,510,200 | 39,690,120 | - | 4,492,852 | 6,510,200 | 44,182,972 | 50,693,172 | (16,234,319 | ) | 34,458,854 | - | |||||||||||||
Fairland Gardens | Silver | 1981 | 400 | 6,000,000 | 19,972,183 | - | 5,427,590 | 6,000,000 | 25,399,773 | 31,399,773 | (10,104,346 | ) | 21,295,428 | - | |||||||||||||
Four Winds | Fall River, | 1987 | 168 | 1,370,843 | 9,163,804 | - | 1,591,671 | 1,370,843 | 10,755,475 | 12,126,318 | (3,298,996 | ) | 8,827,322 | - | |||||||||||||
Fox Hill Apartments | Enfield, CT | 1974 | 168 | 1,129,018 | 7,547,256 | - | 1,061,074 | 1,129,018 | 8,608,330 | 9,737,348 | (2,688,901 | ) | 7,048,447 | - | |||||||||||||
Fox Run (WA) | Federal | 1988 | 144 | 639,700 | 5,765,018 | - | 1,509,614 | 639,700 | 7,274,632 | 7,914,332 | (3,871,952 | ) | 4,042,379 | - | |||||||||||||
Fox Run II (WA) | Federal | 1988 | 18 | 80,000 | 1,286,139 | - | 53,086 | 80,000 | 1,339,225 | 1,419,225 | (298,159 | ) | 1,121,067 | - | |||||||||||||
Gables Grand Plaza | Coral | 1998 | 195 | - | 44,601,000 | - | 2,145,244 | - | 46,746,244 | 46,746,244 | (8,898,994 | ) | 37,847,249 | - | |||||||||||||
Gallery, The | Hermosa | 1971 | 168 | 18,144,000 | 46,565,936 | - | 1,557,382 | 18,144,000 | 48,123,318 | 66,267,318 | (5,336,507 | ) | 60,930,810 | - | |||||||||||||
Gatehouse at Pine Lake | Pembroke | 1990 | 296 | 1,896,600 | 17,070,795 | - | 2,813,255 | 1,896,600 | 19,884,049 | 21,780,649 | (8,718,891 | ) | 13,061,759 | - | |||||||||||||
Gatehouse on the Green | Plantation, | 1990 | 312 | 2,228,200 | 20,056,270 | - | 3,574,818 | 2,228,200 | 23,631,088 | 25,859,288 | (10,278,674 | ) | 15,580,614 | - | |||||||||||||
Gates of Redmond | Redmond, | 1979 | 180 | 2,306,100 | 12,064,015 | - | 4,004,123 | 2,306,100 | 16,068,138 | 18,374,238 | (5,845,429 | ) | 12,528,809 | - | |||||||||||||
Gatewood | Pleasanton, | 1985 | 200 | 6,796,511 | 20,249,392 | - | 2,342,791 | 6,796,511 | 22,592,183 | 29,388,694 | (4,965,724 | ) | 24,422,970 | - | |||||||||||||
Glastonbury Center | Glastonbury, | 1962 | 105 | 852,606 | 5,699,497 | - | 618,634 | 852,606 | 6,318,131 | 7,170,737 | (2,030,196 | ) | 5,140,541 | - | |||||||||||||
Governors Green | Bowie, MD | 1999 | 478 | 19,845,000 | 73,335,916 | - | 142,032 | 19,845,000 | 73,477,948 | 93,322,948 | (3,653,338 | ) | 89,669,610 | - | |||||||||||||
Greenfield Village | Rocky Hill, | 1965 | 151 | 911,534 | 6,093,418 | - | 565,622 | 911,534 | 6,659,041 | 7,570,575 | (2,122,675 | ) | 5,447,900 | - | |||||||||||||
Hamilton Villas | Beverly | 1990 | 35 | 7,772,000 | 16,864,269 | - | 859,091 | 7,772,000 | 17,723,361 | 25,495,361 | (554,827 | ) | 24,940,534 | - | |||||||||||||
Hammocks Place | Miami, FL | 1986 | 296 | 319,180 | 12,513,467 | - | 2,684,422 | 319,180 | 15,197,889 | 15,517,069 | (8,318,371 | ) | 7,198,698 | - | |||||||||||||
Hamptons | Puyallup, | 1991 | 230 | 1,119,200 | 10,075,844 | - | 1,468,167 | 1,119,200 | 11,544,011 | 12,663,211 | (5,056,450 | ) | 7,606,762 | - | |||||||||||||
Harborview | San Pedro, | 1985 | 160 | 6,402,500 | 12,627,347 | - | 1,841,855 | 6,402,500 | 14,469,202 | 20,871,702 | (6,333,885 | ) | 14,537,816 | - | |||||||||||||
Hathaway | Long Beach, | 1987 | 385 | 2,512,500 | 22,611,912 | - | 5,771,097 | 2,512,500 | 28,383,009 | 30,895,509 | (13,202,113 | ) | 17,693,396 | - | |||||||||||||
Heritage Ridge | Lynwood, | 1999 | 197 | 6,895,000 | 18,983,597 | - | 310,857 | 6,895,000 | 19,294,454 | 26,189,454 | (2,957,954 | ) | 23,231,500 | - | |||||||||||||
Heritage, The | Phoenix, AZ | 1995 | 204 | 1,209,705 | 13,136,903 | - | 1,126,835 | 1,209,705 | 14,263,738 | 15,473,443 | (5,697,485 | ) | 9,775,959 | - | |||||||||||||
Heron Pointe | Boynton | 1989 | 192 | 1,546,700 | 7,774,676 | - | 1,678,985 | 1,546,700 | 9,453,661 | 11,000,361 | (4,239,127 | ) | 6,761,234 | - | |||||||||||||
Hidden Oaks | Cary, NC | 1988 | 216 | 1,178,600 | 10,614,135 | - | 2,314,877 | 1,178,600 | 12,929,012 | 14,107,612 | (5,770,894 | ) | 8,336,718 | - | |||||||||||||
Hidden Palms | Tampa, FL | 1986 | 256 | 2,049,600 | 6,345,885 | - | 2,134,318 | 2,049,600 | 8,480,203 | 10,529,803 | (4,085,678 | ) | 6,444,124 | - | |||||||||||||
Highland Glen | Westwood, | 1979 | 180 | 2,229,095 | 16,828,153 | - | 1,933,142 | 2,229,095 | 18,761,295 | 20,990,390 | (5,399,950 | ) | 15,590,440 | - | |||||||||||||
Highland Glen II | Westwood, | 2007 | 102 | - | 19,867,994 | - | 38,332 | - | 19,906,326 | 19,906,326 | (1,169,727 | ) | 18,736,599 | - | |||||||||||||
Highlands, The | Scottsdale, | 1990 | 272 | 11,823,840 | 31,990,970 | - | 2,555,577 | 11,823,840 | 34,546,547 | 46,370,387 | (4,422,583 | ) | 41,947,803 | - | |||||||||||||
Hudson Crossing | New York, | 2003 | 259 | 23,420,000 | 70,086,976 | - | 645,309 | 23,420,000 | 70,732,284 | 94,152,284 | (11,243,156 | ) | 82,909,128 | - | |||||||||||||
Hudson Pointe | Jersey City, | 2003 | 182 | 5,148,500 | 41,143,042 | - | 462,448 | 5,148,500 | 41,605,490 | 46,753,990 | (7,304,690 | ) | 39,449,300 | - | |||||||||||||
Hunt Club II | Charlotte, | (F) | - | 100,000 | - | - | - | 100,000 | - | 100,000 | - | 100,000 | - | ||||||||||||||
Huntington Park | Everett, WA | 1991 | 381 | 1,597,500 | 14,367,864 | - | 3,162,525 | 1,597,500 | 17,530,389 | 19,127,889 | (9,320,189 | ) | 9,807,699 | - | |||||||||||||
Indian Bend | Scottsdale, | 1973 | 277 | 1,075,700 | 9,800,330 | - | 2,845,483 | 1,075,700 | 12,645,813 | 13,721,513 | (7,092,138 | ) | 6,629,375 | - | |||||||||||||
Iron Horse Park | Pleasant | 1973 | 252 | 15,000,000 | 24,335,549 | - | 6,794,454 | 15,000,000 | 31,130,002 | 46,130,002 | (4,198,432 | ) | 41,931,571 | - | |||||||||||||
Ivy Place | Atlanta, GA | 1978 | 122 | 802,950 | 7,228,257 | - | 1,958,504 | 802,950 | 9,186,761 | 9,989,711 | (4,378,068 | ) | 5,611,643 | - | |||||||||||||
Kempton Downs | Gresham, | 1990 | 278 | 1,217,349 | 10,943,372 | - | 2,492,331 | 1,217,349 | 13,435,703 | 14,653,052 | (6,964,228 | ) | 7,688,824 | - | |||||||||||||
Kenwood Mews | Burbank, | 1991 | 141 | 14,100,000 | 24,662,883 | - | 548,795 | 14,100,000 | 25,211,678 | 39,311,678 | (2,898,702 | ) | 36,412,977 | - | |||||||||||||
Key Isle at Windermere | Ocoee, FL | 2000 | 282 | 8,460,000 | 31,761,470 | - | 895,702 | 8,460,000 | 32,657,172 | 41,117,172 | (3,796,924 | ) | 37,320,249 | - | |||||||||||||
Key Isle at Windermere II | Ocoee, FL | 2008 | 165 | 3,306,286 | 24,518,756 | - | 8,817 | 3,306,286 | 24,527,573 | 27,833,859 | (224,734 | ) | 27,609,125 | - | |||||||||||||
Kings Colony (FL) | Miami, FL | 1986 | 480 | 19,200,000 | 48,379,586 | - | 1,786,380 | 19,200,000 | 50,165,966 | 69,365,966 | (7,229,691 | ) | 62,136,275 | - | |||||||||||||
La Mirage | San Diego, | 1988/1992 | 1,070 | 28,895,200 | 95,567,943 | - | 10,493,222 | 28,895,200 | 106,061,165 | 134,956,365 | (43,193,153 | ) | 91,763,212 | - | |||||||||||||
La Mirage IV | San Diego, | 2001 | 340 | 6,000,000 | 47,449,353 | - | 1,896,913 | 6,000,000 | 49,346,266 | 55,346,266 | (12,469,214 | ) | 42,877,052 | - | |||||||||||||
Laguna Clara | Santa Clara, | 1972 | 264 | 13,642,420 | 29,707,475 | - | 2,565,383 | 13,642,420 | 32,272,857 | 45,915,277 | (6,399,603 | ) | 39,515,674 | - | |||||||||||||
Lake Buena Vista | Orlando, FL | 2000/2002 | 672 | 23,520,000 | 75,068,206 | - | 3,127,959 | 23,520,000 | 78,196,165 | 101,716,165 | (10,851,645 | ) | 90,864,520 | - | |||||||||||||
Lakes at Vinings | Atlanta, GA | 1972/1975 | 464 | 6,498,000 | 21,832,252 | - | 3,576,176 | 6,498,000 | 25,408,428 | 31,906,428 | (10,210,483 | ) | 21,695,945 | - | |||||||||||||
Lakeville Resort | Petaluma, | 1984 | 492 | 2,736,500 | 24,610,651 | - | 5,013,485 | 2,736,500 | 29,624,136 | 32,360,636 | (13,619,118 | ) | 18,741,518 | - | |||||||||||||
Landings at Pembroke | Pembroke | 1989 | 358 | 17,900,000 | 24,531,094 | - | 4,164,768 | 17,900,000 | 28,695,862 | 46,595,862 | (3,958,551 | ) | 42,637,310 | - | |||||||||||||
S-6
Schedule III -— Real Estate and Accumulated Depreciation
December 31, 20082010 Cost Capitalized Subsequent to Gross Amount Carried Initial Cost to Acquisition at Close of Description Company (Improvements, net) (E) Period 12/31/10 Date of Building & Building & Building & Accumulated Investment in Real Apartment Name Location Construction Units (H) Land Fixtures Land Fixtures Land Fixtures (A) Total (B) Depreciation (C) Estate, Net at 12/31/10 (B) Encumbrances Mission Bay Orlando, FL 1991 304 2,432,000 21,623,560 — 2,717,235 2,432,000 24,340,795 26,772,795 (10,820,242 ) 15,952,553 — Mission Verde, LLC San Jose, CA 1986 108 5,190,700 9,679,109 — 3,151,242 5,190,700 12,830,351 18,021,051 (5,623,277 ) 12,397,774 — Morningside Scottsdale, AZ 1989 160 670,470 12,607,976 — 1,697,299 670,470 14,305,275 14,975,745 (6,740,861 ) 8,234,884 — Mosaic at Largo Station Hyattsville, MD 2008 242 4,120,800 42,477,297 — 237,451 4,120,800 42,714,748 46,835,548 (4,141,764 ) 42,693,784 — Mozaic at Union Station Los Angeles, CA 2007 272 8,500,000 52,583,270 — 668,419 8,500,000 53,251,689 61,751,689 (8,972,618 ) 52,779,071 — New River Cove Davie, FL 1999 316 15,800,000 46,142,895 — 1,049,654 15,800,000 47,192,549 62,992,549 (10,341,684 ) 52,650,865 — Northampton 1 Largo, MD 1977 344 1,843,200 17,528,381 — 5,798,143 1,843,200 23,326,524 25,169,724 (14,229,754 ) 10,939,970 — Northampton 2 Largo, MD 1988 276 1,513,500 14,246,990 — 3,654,124 1,513,500 17,901,114 19,414,614 (10,571,731 ) 8,842,883 — Northglen Valencia, CA 1988 234 9,360,000 20,778,553 — 1,728,818 9,360,000 22,507,371 31,867,371 (8,256,285 ) 23,611,086 — Northlake (MD) Germantown, MD 1985 304 15,000,000 23,142,302 — 9,754,730 15,000,000 32,897,032 47,897,032 (9,909,101 ) 37,987,931 — Northridge Pleasant Hill, CA 1974 221 5,527,800 14,691,705 — 8,471,887 5,527,800 23,163,592 28,691,392 (9,697,063 ) 18,994,329 — Oak Park North Agoura Hills, CA 1990 220 1,706,900 15,362,666 — 2,806,978 1,706,900 18,169,644 19,876,544 (9,627,790 ) 10,248,754 — Oak Park South Agoura Hills, CA 1989 224 1,683,800 15,154,608 — 2,923,629 1,683,800 18,078,237 19,762,037 (9,624,230 ) 10,137,807 — Oaks at Falls Church Falls Church, VA 1966 176 20,240,000 20,152,616 — 3,552,434 20,240,000 23,705,050 43,945,050 (5,665,262 ) 38,279,788 — Ocean Crest Solana Beach, CA 1986 146 5,111,200 11,910,438 — 2,058,043 5,111,200 13,968,481 19,079,681 (6,514,987 ) 12,564,694 — Ocean Walk Key West, FL 1990 297 2,838,749 25,545,009 — 3,233,758 2,838,749 28,778,767 31,617,516 (13,599,381 ) 18,018,135 — Olympus Towers Seattle, WA (G) 2000 328 14,752,034 73,335,425 — 2,226,097 14,752,034 75,561,522 90,313,556 (19,377,834 ) 70,935,722 — Orchard Ridge Lynnwood, WA 1988 104 480,600 4,372,033 — 1,127,901 480,600 5,499,934 5,980,534 (3,295,398 ) 2,685,136 — Overlook Manor Frederick, MD 1980/1985 108 1,299,100 3,930,931 — 2,142,057 1,299,100 6,072,988 7,372,088 (3,277,788 ) 4,094,300 — Overlook Manor II Frederick, MD 1980/1985 182 2,186,300 6,262,597 — 1,253,022 2,186,300 7,515,619 9,701,919 (3,549,205 ) 6,152,714 — Paces Station Atlanta, GA 1984-1989 610 4,801,500 32,548,053 — 8,202,985 4,801,500 40,751,038 45,552,538 (20,808,476 ) 24,744,062 — Palm Trace Landings Davie, FL 1995 768 38,400,000 105,693,432 — 2,605,905 38,400,000 108,299,337 146,699,337 (23,469,327 ) 123,230,010 — Panther Ridge Federal Way, WA 1980 260 1,055,800 9,506,117 — 1,846,801 1,055,800 11,352,918 12,408,718 (5,866,485 ) 6,542,233 — Parc 77 New York, NY (G) 1903 137 40,504,000 18,025,679 — 4,115,467 40,504,000 22,141,146 62,645,146 (4,773,963 ) 57,871,183 — Parc Cameron New York, NY (G) 1927 166 37,600,000 9,855,597 — 5,120,583 37,600,000 14,976,180 52,576,180 (3,867,865 ) 48,708,315 — Parc Coliseum New York, NY (G) 1910 177 52,654,000 23,045,751 — 6,947,750 52,654,000 29,993,501 82,647,501 (6,372,704 ) 76,274,797 — Park at Turtle Run, The Coral Springs, FL 2001 257 15,420,000 36,064,629 — 898,823 15,420,000 36,963,452 52,383,452 (9,407,101 ) 42,976,351 — Park West (CA) Los Angeles, CA 1987/1990 444 3,033,500 27,302,383 — 5,418,219 3,033,500 32,720,602 35,754,102 (17,933,416 ) 17,820,686 — Parkside Union City, CA 1979 208 6,246,700 11,827,453 — 3,310,231 6,246,700 15,137,684 21,384,384 (7,795,045 ) 13,589,339 — Parkview Terrace Redlands, CA 1986 558 4,969,200 35,653,777 — 11,282,338 4,969,200 46,936,115 51,905,315 (22,196,279 ) 29,709,036 — Phillips Park Wellesley, MA 1988 49 816,922 5,460,955 — 936,091 816,922 6,397,046 7,213,968 (2,475,515 ) 4,738,453 — Pine Harbour Orlando, FL 1991 366 1,664,300 14,970,915 — 3,529,258 1,664,300 18,500,173 20,164,473 (11,225,249 ) 8,939,224 — Playa Pacifica Hermosa Beach,CA 1972 285 35,100,000 33,473,822 — 7,145,521 35,100,000 40,619,343 75,719,343 (10,641,111 ) 65,078,232 — Pointe at South Mountain Phoenix, AZ 1988 364 2,228,800 20,059,311 — 3,210,958 2,228,800 23,270,269 25,499,069 (11,847,168 ) 13,651,901 — Polos East Orlando, FL 1991 308 1,386,000 19,058,620 — 2,188,231 1,386,000 21,246,851 22,632,851 (9,567,266 ) 13,065,585 — Port Royale Ft. Lauderdale, FL (G) 1988 252 1,754,200 15,789,873 — 7,514,240 1,754,200 23,304,113 25,058,313 (12,612,882 ) 12,445,431 — Port Royale II Ft. Lauderdale, FL (G) 1988 161 1,022,200 9,203,166 — 4,702,265 1,022,200 13,905,431 14,927,631 (7,140,443 ) 7,787,188 — Port Royale III Ft. Lauderdale, FL (G) 1988 324 7,454,900 14,725,802 — 8,935,675 7,454,900 23,661,477 31,116,377 (11,497,857 ) 19,618,520 — Port Royale IV Ft. Lauderdale, FL (F) — — 387,471 — — — 387,471 387,471 — 387,471 — Portofino Chino Hills, CA 1989 176 3,572,400 14,660,994 — 2,150,998 3,572,400 16,811,992 20,384,392 (7,854,366 ) 12,530,026 — Portofino (Val) Valencia, CA 1989 216 8,640,000 21,487,126 — 2,302,820 8,640,000 23,789,946 32,429,946 (8,794,584 ) 23,635,362 — Portside Towers Jersey City, NJ (G) 1992-1997 527 22,487,006 96,842,913 — 14,773,378 22,487,006 111,616,291 134,103,297 (47,349,520 ) 86,753,777 — Preserve at Deer Creek Deerfield Beach, FL 1997 540 13,500,000 60,011,208 — 3,069,187 13,500,000 63,080,395 76,580,395 (16,723,806 ) 59,856,589 — Prime, The Arlington, VA 2002 256 32,000,000 64,436,539 — 587,595 32,000,000 65,024,134 97,024,134 (12,202,034 ) 84,822,100 — Promenade at Aventura Aventura, FL 1995 296 13,320,000 30,353,748 — 4,740,072 13,320,000 35,093,820 48,413,820 (12,325,089 ) 36,088,731 — Promenade at Town Center I Valencia, CA 2001 294 14,700,000 35,390,279 — 2,762,304 14,700,000 38,152,583 52,852,583 (10,327,370 ) 42,525,213 — Promenade at Wyndham Lakes Coral Springs, FL 1998 332 6,640,000 26,743,760 — 3,364,705 6,640,000 30,108,465 36,748,465 (10,964,932 ) 25,783,533 — Promenade Terrace Corona, CA 1990 330 2,272,800 20,546,289 — 4,744,546 2,272,800 25,290,835 27,563,635 (13,575,380 ) 13,988,255 — Promontory Pointe I & II Phoenix, AZ 1984/1996 424 2,355,509 30,421,840 — 3,698,629 2,355,509 34,120,469 36,475,978 (16,314,043 ) 20,161,935 — Prospect Towers Hackensack, NJ 1995 157 3,926,600 31,738,452 — 2,938,287 3,926,600 34,676,739 38,603,339 (13,635,911 ) 24,967,428 — Prospect Towers II Hackensack, NJ 2002 203 4,500,000 33,104,733 — 2,070,180 4,500,000 35,174,913 39,674,913 (10,813,863 ) 28,861,050 — Ravens Crest Plainsboro, NJ 1984 704 4,670,850 42,080,642 — 11,945,748 4,670,850 54,026,390 58,697,240 (31,532,339 ) 27,164,901 — Redmond Ridge Redmond, WA 2008 321 6,975,705 46,175,001 — 73,615 6,975,705 46,248,616 53,224,321 (4,628,114 ) 48,596,207 — Red 160 (fka Redmond Way) Redmond, WA (G) (F) — 15,546,376 61,417,903 — 9,488 15,546,376 61,427,391 76,973,767 (339 ) 76,973,428 — Regency Palms Huntington Beach, CA 1969 310 1,857,400 16,713,254 — 4,433,614 1,857,400 21,146,868 23,004,268 (11,462,162 ) 11,542,106 — Regency Park Centreville, VA 1989 252 2,521,500 16,200,666 — 7,802,524 2,521,500 24,003,190 26,524,690 (11,693,111 ) 14,831,579 — Registry Northglenn, CO 1986 208 2,000,000 10,926,759 — 48,337 2,000,000 10,975,096 12,975,096 (1,278,875 ) 11,696,221 — Remington Place Phoenix, AZ 1983 412 1,492,750 13,377,478 — 4,637,494 1,492,750 18,014,972 19,507,722 (10,299,256 ) 9,208,466 — Renaissance Villas Berkeley, CA (G) 1998 34 2,458,000 4,542,000 — 5,418 2,458,000 4,547,418 7,005,418 (332,879 ) 6,672,539 — Reserve at Ashley Lake Boynton Beach, FL 1990 440 3,520,400 23,332,494 — 4,721,183 3,520,400 28,053,677 31,574,077 (13,452,026 ) 18,122,051 — Reserve at Town Center Loudon, VA 2002 290 3,144,056 27,669,121 — 712,324 3,144,056 28,381,445 31,525,501 (7,401,808 ) 24,123,693 — Reserve at Town Center II (WA) Mill Creek, WA 2009 100 4,310,417 17,172,642 — 7,133 4,310,417 17,179,775 21,490,192 (614,973 ) 20,875,219 — Reserve at Town Center III Mill Creek, WA (F) — 2,089,388 220,235 — — 2,089,388 220,235 2,309,623 — 2,309,623 — Retreat, The Phoenix, AZ 1999 480 3,475,114 27,265,252 — 2,380,882 3,475,114 29,646,134 33,121,248 (12,339,194 ) 20,782,054 — Rianna I Seattle, WA (G) 2000 78 2,268,160 14,864,482 — 84,986 2,268,160 14,949,468 17,217,628 (1,125,268 ) 16,092,360 — Ridgewood Village I&II San Diego, CA 1997 408 11,809,500 34,004,048 — 2,195,996 11,809,500 36,200,044 48,009,544 (14,118,993 ) 33,890,551 — River Pointe at Den Rock Park Lawrence, MA 2000 174 4,615,702 18,440,147 — 1,212,909 4,615,702 19,653,056 24,268,758 (6,078,818 ) 18,189,940 — River Tower New York, NY (G) 1982 323 118,669,441 98,880,559 — 401,052 118,669,441 99,281,611 217,951,052 (12,970,964 ) 204,980,088 — Rivers Bend (CT) Windsor, CT 1973 373 3,325,517 22,573,826 — 2,724,959 3,325,517 25,298,785 28,624,302 (9,670,355 ) 18,953,947 — Riverview Condominiums Norwalk, CT 1991 92 2,300,000 7,406,730 — 1,806,846 2,300,000 9,213,576 11,513,576 (4,117,696 ) 7,395,880 — Royal Oaks (FL) Jacksonville, FL 1991 284 1,988,000 13,645,117 — 3,882,711 1,988,000 17,527,828 19,515,828 (7,780,869 ) 11,734,959 — Sabal Palm at Carrollwood Place Tampa, FL 1995 432 3,888,000 26,911,542 — 2,533,589 3,888,000 29,445,131 33,333,131 (12,979,307 ) 20,353,824 — Sabal Palm at Lake Buena Vista Orlando, FL 1988 400 2,800,000 23,687,893 — 3,982,057 2,800,000 27,669,950 30,469,950 (12,197,653 ) 18,272,297 — Sabal Palm at Metrowest Orlando, FL 1998 411 4,110,000 38,394,865 — 3,876,633 4,110,000 42,271,498 46,381,498 (18,443,292 ) 27,938,206 —
| Description | Initial Cost to Company | Cost Capitalized Subsequent to Acquisition (Improvements, net) (E) | Gross Amount Carried at Close of Period 12/31/08 | |||||||||||||||||||||||||
Apartment | Location | Date of Construction | Units (H) | Land | Building & Fixtures | Land | Building & Fixtures | Land | Building & Fixtures (A) | Total (B) | Accumulated Depreciation (C) | Investment in Real Estate, Net at 12/31/08 | Encumbrances | |||||||||||||||
Landings at Port | W. New York, | 1999 | 276 | 27,246,045 | 37,741,050 | - | 5,915,044 | 27,246,045 | 43,656,093 | 70,902,138 | (11,540,765 | ) | 59,361,374 | - | ||||||||||||||
Las Colinas at Black | Phoenix, AZ | 2008 | 304 | 9,000,000 | 35,916,739 | - | 1,561 | 9,000,000 | 35,918,299 | 44,918,299 | (154,546 | ) | 44,763,753 | - | ||||||||||||||
Laurel Ridge | Chapel Hill, | 1975 | 160 | 160,000 | 3,206,076 | - | 4,091,065 | 160,000 | 7,297,141 | 7,457,141 | (5,511,865 | ) | 1,945,277 | - | ||||||||||||||
Laurel Ridge II | Chapel Hill, | (F) | - | 22,551 | - | - | - | 22,551 | - | 22,551 | - | 22,551 | - | |||||||||||||||
Legends at Preston | Morrisville, | 2000 | 382 | 3,055,906 | 27,150,092 | - | 1,080,148 | 3,055,906 | 28,230,241 | 31,286,147 | (8,485,769 | ) | 22,800,378 | - | ||||||||||||||
Lexington Farm | Alpharetta, | 1995 | 352 | 3,521,900 | 22,888,305 | - | 2,176,406 | 3,521,900 | 25,064,711 | 28,586,611 | (9,193,367 | ) | 19,393,245 | - | ||||||||||||||
Lexington Park | Orlando, FL | 1988 | 252 | 2,016,000 | 12,346,726 | - | 2,205,556 | 2,016,000 | 14,552,282 | 16,568,282 | (5,838,903 | ) | 10,729,379 | - | ||||||||||||||
Liberty Park | Brain Tree, | 2000 | 202 | 5,977,504 | 26,749,111 | - | 1,544,321 | 5,977,504 | 28,293,431 | 34,270,935 | (6,313,350 | ) | 27,957,585 | - | ||||||||||||||
Little Cottonwoods | Tempe, AZ | 1984 | 379 | 3,050,133 | 26,991,689 | - | 3,064,410 | 3,050,133 | 30,056,100 | 33,106,233 | (12,148,158 | ) | 20,958,075 | - | ||||||||||||||
Lofton Place | Tampa, FL | 1988 | 280 | 2,240,000 | 16,679,214 | - | 2,646,895 | 2,240,000 | 19,326,109 | 21,566,109 | (7,509,246 | ) | 14,056,862 | - | ||||||||||||||
Longfellow Place | Boston, MA | 1975 | 710 | 53,164,160 | 183,940,619 | - | 36,399,079 | 53,164,160 | 220,339,697 | 273,503,857 | (78,881,773 | ) | 194,622,084 | - | ||||||||||||||
Loomis Manor | West | 1948 | 43 | 422,350 | 2,823,326 | - | 375,223 | 422,350 | 3,198,549 | 3,620,899 | (1,043,093 | ) | 2,577,806 | - | ||||||||||||||
Madison at Cedar | Dallas, TX | 1995 | 380 | 2,470,000 | 33,194,620 | - | 3,423,060 | 2,470,000 | 36,617,680 | 39,087,680 | (12,884,379 | ) | 26,203,301 | - | ||||||||||||||
Madison at Chase Oaks | Plano, TX | 1995 | 470 | 3,055,000 | 28,932,885 | - | 2,242,678 | 3,055,000 | 31,175,563 | 34,230,563 | (11,588,152 | ) | 22,642,411 | - | ||||||||||||||
Madison on Melrose | Richardson, | 1995 | 200 | 1,300,000 | 15,096,551 | - | 981,925 | 1,300,000 | 16,078,476 | 17,378,476 | (5,900,043 | ) | 11,478,433 | - | ||||||||||||||
Magnolia at Whitlock | Marietta, GA | 1971 | 152 | 132,979 | 1,526,005 | - | 3,900,098 | 132,979 | 5,426,103 | 5,559,082 | (4,233,767 | ) | 1,325,315 | - | ||||||||||||||
Mariners Wharf | Orange Park, | 1989 | 272 | 1,861,200 | 16,744,951 | - | 2,941,744 | 1,861,200 | 19,686,695 | 21,547,895 | (7,955,327 | ) | 13,592,568 | - | ||||||||||||||
Marquessa | Corona Hills, | 1992 | 336 | 6,888,500 | 21,604,584 | - | 2,465,423 | 6,888,500 | 24,070,007 | 30,958,507 | (10,019,811 | ) | 20,938,695 | - | ||||||||||||||
Martha Lake | Lynnwood, | 1991 | 155 | 821,200 | 7,405,070 | - | 1,702,708 | 821,200 | 9,107,779 | 9,928,979 | (4,150,837 | ) | 5,778,142 | - | ||||||||||||||
Martine, The | Bellevue, WA | 1984 | 67 | 3,200,000 | 9,616,264 | - | 1,715,528 | 3,200,000 | 11,331,792 | 14,531,792 | (503,508 | ) | 14,028,284 | - | ||||||||||||||
Meadow Ridge | Norwich, CT | 1987 | 120 | 747,957 | 4,999,937 | - | 658,425 | 747,957 | 5,658,362 | 6,406,319 | (1,760,359 | ) | 4,645,959 | - | ||||||||||||||
Merrill Creek | Lakewood, | 1994 | 149 | 814,200 | 7,330,606 | - | 933,970 | 814,200 | 8,264,575 | 9,078,775 | (3,508,071 | ) | 5,570,704 | - | ||||||||||||||
Mill Creek | Milpitas, CA | 1991 | 516 | 12,858,693 | 57,168,503 | - | 1,763,176 | 12,858,693 | 58,931,679 | 71,790,372 | (12,911,817 | ) | 58,878,555 | - | ||||||||||||||
Mira Flores | Palm Beach | 1996 | 352 | 7,039,313 | 22,515,299 | - | 1,514,605 | 7,039,313 | 24,029,904 | 31,069,217 | (6,535,956 | ) | 24,533,261 | - | ||||||||||||||
Miramar Lakes | Miramar, FL | 2003 | 344 | 17,200,000 | 51,487,235 | - | 918,987 | 17,200,000 | 52,406,222 | 69,606,222 | (6,189,253 | ) | 63,416,969 | - | ||||||||||||||
Mission Bay | Orlando, FL | 1991 | 304 | 2,432,000 | 21,623,560 | - | 2,233,969 | 2,432,000 | 23,857,529 | 26,289,529 | (8,926,315 | ) | 17,363,215 | - | ||||||||||||||
Mission Verde, LLC | San Jose, CA | 1986 | 108 | 5,190,700 | 9,679,109 | - | 2,918,055 | 5,190,700 | 12,597,163 | 17,787,863 | (4,128,005 | ) | 13,659,859 | - | ||||||||||||||
Monterra in Mill Creek | Mill Creek, | 2003 | 139 | 2,800,000 | 13,255,123 | - | 167,335 | 2,800,000 | 13,422,458 | 16,222,458 | (2,227,664 | ) | 13,994,794 | - | ||||||||||||||
Morningside | Scottsdale, | 1989 | 160 | 670,470 | 12,607,976 | - | 1,429,896 | 670,470 | 14,037,872 | 14,708,342 | (5,637,856 | ) | 9,070,487 | - | ||||||||||||||
Mountain Terrace | Stevenson | 1992 | 510 | 3,966,500 | 35,814,995 | - | 7,280,336 | 3,966,500 | 43,095,331 | 47,061,831 | (16,962,856 | ) | 30,098,975 | - | ||||||||||||||
New River Cove | Davie, FL | 1999 | 316 | 15,800,000 | 46,142,895 | - | 572,012 | 15,800,000 | 46,714,907 | 62,514,907 | (5,693,865 | ) | 56,821,042 | - | ||||||||||||||
Northampton 2 | Largo, MD | 1988 | 276 | 1,513,500 | 14,246,990 | - | 3,165,558 | 1,513,500 | 17,412,548 | 18,926,048 | (9,046,964 | ) | 9,879,084 | - | ||||||||||||||
Northlake (MD) | Germantown, | 1985 | 304 | 15,000,000 | 23,142,302 | - | 9,658,581 | 15,000,000 | 32,800,883 | 47,800,883 | (5,820,861 | ) | 41,980,022 | - | ||||||||||||||
Northridge | Pleasant Hill, | 1974 | 221 | 5,527,800 | 14,691,705 | - | 5,887,075 | 5,527,800 | 20,578,779 | 26,106,579 | (7,292,900 | ) | 18,813,679 | - | ||||||||||||||
Northwoods Village | Cary, NC | 1986 | 228 | 1,369,700 | 11,460,337 | - | 2,446,290 | 1,369,700 | 13,906,627 | 15,276,327 | (6,178,357 | ) | 9,097,969 | - | ||||||||||||||
Oaks at Falls Church | Falls Church, | 1966 | 176 | 20,240,000 | 20,152,616 | - | 2,841,836 | 20,240,000 | 22,994,452 | 43,234,452 | (3,168,456 | ) | 40,065,996 | - | ||||||||||||||
Ocean Crest | Solana Beach, | 1986 | 146 | 5,111,200 | 11,910,438 | - | 1,783,735 | 5,111,200 | 13,694,173 | 18,805,373 | (5,281,964 | ) | 13,523,409 | - | ||||||||||||||
Ocean Walk | Key West, FL | 1990 | 297 | 2,838,749 | 25,545,009 | - | 2,949,241 | 2,838,749 | 28,494,249 | 31,332,998 | (11,254,710 | ) | 20,078,288 | - | ||||||||||||||
Olympus Towers | Seattle, WA | 2000 | 328 | 14,752,034 | 73,376,841 | - | 1,742,451 | 14,752,034 | 75,119,292 | 89,871,326 | (14,120,591 | ) | 75,750,735 | - | ||||||||||||||
Orchard Ridge | Lynnwood, | 1988 | 104 | 480,600 | 4,372,033 | - | 967,317 | 480,600 | 5,339,350 | 5,819,950 | (2,859,809 | ) | 2,960,140 | - | ||||||||||||||
Overlook Manor | Frederick, | 1980/1985 | 108 | 1,299,100 | 3,930,931 | - | 1,896,555 | 1,299,100 | 5,827,486 | 7,126,586 | (2,630,819 | ) | 4,495,767 | - | ||||||||||||||
Overlook Manor II | Frederick, | 1980/1985 | 182 | 2,186,300 | 6,262,597 | - | 925,108 | 2,186,300 | 7,187,705 | 9,374,005 | (2,842,274 | ) | 6,531,731 | - | ||||||||||||||
Paces Station | Atlanta, GA | 1984-1989 | 610 | 4,801,500 | 32,548,053 | - | 7,211,810 | 4,801,500 | 39,759,862 | 44,561,362 | (17,469,546 | ) | 27,091,816 | - | ||||||||||||||
Palladia | Hillsboro, OR | 2000 | 497 | 6,461,000 | 44,888,156 | - | 1,010,712 | 6,461,000 | 45,898,868 | 52,359,868 | (12,513,923 | ) | 39,845,945 | - | ||||||||||||||
Palm Trace Landings | Davie, FL | 1995 | 768 | 38,400,000 | 105,793,432 | - | 1,503,979 | 38,400,000 | 107,297,411 | 145,697,411 | (12,958,097 | ) | 132,739,314 | - | ||||||||||||||
Panther Ridge | Federal Way, | 1980 | 260 | 1,055,800 | 9,506,117 | - | 1,663,857 | 1,055,800 | 11,169,974 | 12,225,774 | (5,007,541 | ) | 7,218,233 | - | ||||||||||||||
Parc 77 | New York, | 1903 | 137 | 40,504,000 | 18,025,679 | - | 2,950,422 | 40,504,000 | 20,976,101 | 61,480,101 | (2,291,575 | ) | 59,188,526 | - | ||||||||||||||
Parc Cameron | New York, | 1927 | 166 | 37,600,000 | 9,856,337 | - | 3,136,926 | 37,600,000 | 12,993,263 | 50,593,263 | (1,664,239 | ) | 48,929,024 | - | ||||||||||||||
Parc Coliseum | New York, | 1910 | 176 | 52,654,000 | 23,046,491 | - | 4,872,460 | 52,654,000 | 27,918,951 | 80,572,951 | (2,861,468 | ) | 77,711,483 | - | ||||||||||||||
Park at Turtle Run, The | Coral Springs, | 2001 | 257 | 15,420,000 | 36,064,629 | - | 759,832 | 15,420,000 | 36,824,461 | 52,244,461 | (5,702,550 | ) | 46,541,911 | - | ||||||||||||||
Park Bloomingdale | Bloomingdale, | 1989 | 1 | 16,824 | 84,873 | - | (5,998 | ) | 16,824 | 78,876 | 95,700 | (30,281 | ) | 65,418 | - | |||||||||||||
Park West (CA) | Los Angeles, | 1987/1990 | 444 | 3,033,500 | 27,302,383 | - | 5,035,591 | 3,033,500 | 32,337,973 | 35,371,473 | (15,297,564 | ) | 20,073,909 | - | ||||||||||||||
Parkside | Union City, | 1979 | 208 | 6,246,700 | 11,827,453 | - | 2,995,961 | 6,246,700 | 14,823,414 | 21,070,114 | (6,507,886 | ) | 14,562,228 | - | ||||||||||||||
Parkview Terrace | Redlands, CA | 1986 | 558 | 4,969,200 | 35,653,777 | - | 10,891,594 | 4,969,200 | 46,545,371 | 51,514,571 | (17,785,589 | ) | 33,728,983 | - | ||||||||||||||
Parkwood (CT) | East Haven, | 1975 | 102 | 531,365 | 3,552,064 | - | 598,636 | 531,365 | 4,150,700 | 4,682,065 | (1,354,495 | ) | 3,327,570 | - | ||||||||||||||
Phillips Park | Wellesley, | 1988 | 49 | 816,922 | 5,460,955 | - | 897,230 | 816,922 | 6,358,185 | 7,175,107 | (1,894,250 | ) | 5,280,857 | - | ||||||||||||||
Pine Harbour | Orlando, FL | 1991 | 366 | 1,664,300 | 14,970,915 | - | 3,094,321 | 1,664,300 | 18,065,236 | 19,729,536 | (9,773,709 | ) | 9,955,827 | - | ||||||||||||||
Playa Pacifica | Hermosa | 1972 | 285 | 35,100,000 | 33,473,822 | - | 6,909,421 | 35,100,000 | 40,383,243 | 75,483,243 | (5,967,484 | ) | 69,515,760 | - | ||||||||||||||
Pointe at South | Phoenix, AZ | 1988 | 364 | 2,228,800 | 20,059,311 | - | 2,853,508 | 2,228,800 | 22,912,819 | 25,141,619 | (10,000,243 | ) | 15,141,375 | - | ||||||||||||||
Polos East | Orlando, FL | 1991 | 308 | 1,386,000 | 19,058,620 | - | 1,849,288 | 1,386,000 | 20,907,908 | 22,293,908 | (7,927,391 | ) | 14,366,517 | - | ||||||||||||||
Port Royale | Ft. | 1988 | 252 | 1,754,200 | 15,789,873 | - | 5,848,428 | 1,754,200 | 21,638,301 | 23,392,501 | (10,350,615 | ) | 13,041,886 | - | ||||||||||||||
Port Royale II | Ft. | 1988 | 161 | 1,022,200 | 9,203,166 | - | 3,710,685 | 1,022,200 | 12,913,851 | 13,936,051 | (5,770,701 | ) | 8,165,350 | - | ||||||||||||||
Port Royale III | Ft. | 1988 | 324 | 7,454,900 | 14,725,802 | - | 6,940,198 | 7,454,900 | 21,666,000 | 29,120,900 | (8,994,903 | ) | 20,125,997 | - | ||||||||||||||
Portofino | Chino Hills, | 1989 | 176 | 3,572,400 | 14,660,994 | - | 1,580,115 | 3,572,400 | 16,241,109 | 19,813,509 | (6,552,370 | ) | 13,261,139 | - | ||||||||||||||
Portside Towers | Jersey City, | 1992-1997 | 527 | 22,487,006 | 96,842,913 | - | 9,156,163 | 22,487,006 | 105,999,076 | 128,486,083 | (38,807,012 | ) | 89,679,071 | - | ||||||||||||||
Preserve at Deer Creek | Deerfield | 1997 | 540 | 13,500,000 | 60,011,208 | - | 2,135,641 | 13,500,000 | 62,146,849 | 75,646,849 | (12,044,500 | ) | 63,602,349 | - | ||||||||||||||
Prime, The | Arlington, VA | 2002 | 256 | 32,000,000 | 64,451,521 | - | 493,169 | 32,000,000 | 64,944,690 | 96,944,690 | (6,621,385 | ) | 90,323,305 | - | ||||||||||||||
Promenade (FL) | St. Petersburg, | 1994 | 334 | 2,124,193 | 25,804,037 | - | 3,555,540 | 2,124,193 | 29,359,577 | 31,483,770 | (11,252,866 | ) | 20,230,904 | - | ||||||||||||||
Promenade at Aventura | Aventura, FL | 1995 | 296 | 13,320,000 | 30,353,748 | - | 2,603,391 | 13,320,000 | 32,957,139 | 46,277,139 | (9,521,390 | ) | 36,755,749 | - | ||||||||||||||
Promenade at Town | Valencia, CA | 2001 | 294 | 14,700,000 | 35,390,279 | - | 1,120,868 | 14,700,000 | 36,511,146 | 51,211,146 | (7,360,800 | ) | 43,850,347 | - | ||||||||||||||
Promenade at | Coral Springs, | 1998 | 332 | 6,640,000 | 26,743,760 | - | 1,631,879 | 6,640,000 | 28,375,639 | 35,015,639 | (8,686,258 | ) | 26,329,381 | - | ||||||||||||||
Promontory Pointe I & | Phoenix, AZ | 1984/1996 | 424 | 2,355,509 | 30,421,840 | - | 3,406,130 | 2,355,509 | 33,827,970 | 36,183,479 | (13,684,094 | ) | 22,499,385 | - | ||||||||||||||
Prospect Towers | Hackensack, | 1995 | 157 | 3,926,600 | 27,966,416 | - | 2,635,344 | 3,926,600 | 30,601,760 | 34,528,360 | (12,389,125 | ) | 22,139,235 | - | ||||||||||||||
Prospect Towers II | Hackensack, | 2002 | 203 | 4,500,000 | 33,104,733 | - | 1,295,293 | 4,500,000 | 34,400,026 | 38,900,026 | (8,252,384 | ) | 30,647,642 | - | ||||||||||||||
Ravens Crest | Plainsboro, NJ | 1984 | 704 | 4,670,850 | 42,080,642 | - | 11,034,409 | 4,670,850 | 53,115,051 | 57,785,901 | (26,828,342 | ) | 30,957,559 | - | ||||||||||||||
Redlands Lawn and | Redlands, CA | 1986 | 496 | 4,822,320 | 26,359,328 | - | 3,964,585 | 4,822,320 | 30,323,913 | 35,146,233 | (12,404,888 | ) | 22,741,346 | - | ||||||||||||||
Redmond Ridge | Redmond, | 2008 | 321 | 6,975,705 | 45,932,828 | - | 17,148 | 6,975,705 | 45,949,976 | 52,925,681 | (1,067,063 | ) | 51,858,618 | - | ||||||||||||||
Redmond Way | Redmond , | (F) | - | 15,546,376 | 6,887,326 | - | - | 15,546,376 | 6,887,326 | 22,433,702 | - | 22,433,702 | - | |||||||||||||||
Regency Palms | Huntington | 1969 | 310 | 1,857,400 | 16,713,254 | - | 3,400,718 | 1,857,400 | 20,113,972 | 21,971,372 | (9,788,393 | ) | 12,182,979 | - | ||||||||||||||
Regency Park | Centreville, | 1989 | 252 | 2,521,500 | 16,200,666 | - | 7,541,759 | 2,521,500 | 23,742,424 | 26,263,924 | (8,989,214 | ) | 17,274,710 | - | ||||||||||||||
Remington Place | Phoenix, AZ | 1983 | 412 | 1,492,750 | 13,377,478 | - | 4,040,994 | 1,492,750 | 17,418,472 | 18,911,222 | (8,833,505 | ) | 10,077,717 | - | ||||||||||||||
Reserve at Town Center | Loudon, VA | 2002 | 290 | 3,144,056 | 27,669,121 | - | 564,594 | 3,144,056 | 28,233,715 | 31,377,770 | (5,399,555 | ) | 25,978,215 | - | ||||||||||||||
Reserve at Town Center II | Mill Creek, | (F) | - | 4,310,417 | 5,013,621 | - | - | 4,310,417 | 5,013,621 | 9,324,039 | - | 9,324,039 | - | |||||||||||||||
Residences at Little | Haverhill, MA | 2003 | 174 | 6,905,138 | 19,172,747 | - | 384,973 | 6,905,138 | 19,557,720 | 26,462,858 | (4,024,922 | ) | 22,437,936 | - | ||||||||||||||
Ribbon Mill | Manchester, | 1908 | 104 | 787,929 | 5,267,144 | - | 556,668 | 787,929 | 5,823,812 | 6,611,741 | (1,850,563 | ) | 4,761,178 | - | ||||||||||||||
Ridgewood Village | San Diego, | 1997 | 408 | 11,809,500 | 34,004,048 | - | 1,409,420 | 11,809,500 | 35,413,468 | 47,222,968 | (11,457,452 | ) | 35,765,515 | - | ||||||||||||||
Rivers Bend (CT) | Windsor, CT | 1973 | 373 | 3,325,517 | 22,573,826 | - | 2,290,978 | 3,325,517 | 24,864,804 | 28,190,320 | (7,573,864 | ) | 20,616,457 | - | ||||||||||||||
Riverview Condominiums | Norwalk, CT | 1991 | 92 | 2,300,000 | 7,406,730 | - | 1,630,134 | 2,300,000 | 9,036,864 | 11,336,864 | (3,425,839 | ) | 7,911,026 | - | ||||||||||||||
Rock Creek | Carrboro, NC | 1986 | 188 | 895,700 | 8,062,543 | - | 2,028,944 | 895,700 | 10,091,486 | 10,987,186 | (4,802,339 | ) | 6,184,847 | - | ||||||||||||||
Rosecliff | Quincy, MA | 1990 | 156 | 5,460,000 | 15,721,570 | - | 798,043 | 5,460,000 | 16,519,613 | 21,979,613 | (5,395,975 | ) | 16,583,638 | - | ||||||||||||||
Royal Oaks (FL) | Jacksonville, | 1991 | 284 | 1,988,000 | 13,645,117 | - | 2,673,120 | 1,988,000 | 16,318,238 | 18,306,238 | (6,191,023 | ) | 12,115,215 | - | ||||||||||||||
Sabal Palm at Boot | Palm Harbor, | 1996 | 432 | 3,888,000 | 28,923,692 | - | 2,735,717 | 3,888,000 | 31,659,409 | 35,547,409 | (11,768,078 | ) | 23,779,331 | - | ||||||||||||||
Sabal Palm at | Tampa, FL | 1995 | 432 | 3,888,000 | 26,911,542 | - | 2,232,195 | 3,888,000 | 29,143,738 | 33,031,738 | (10,668,948 | ) | 22,362,790 | - | ||||||||||||||
Sabal Palm at Lake | Orlando, FL | 1988 | 400 | 2,800,000 | 23,687,893 | - | 2,710,931 | 2,800,000 | 26,398,824 | 29,198,824 | (10,017,094 | ) | 19,181,730 | - | ||||||||||||||
Sabal Palm at | Orlando, FL | 1998 | 411 | 4,110,000 | 38,394,865 | - | 3,150,584 | 4,110,000 | 41,545,449 | 45,655,449 | (15,215,912 | ) | 30,439,537 | - | ||||||||||||||
Sabal Palm at | Orlando, FL | 1997 | 456 | 4,560,000 | 33,907,283 | - | 2,154,784 | 4,560,000 | 36,062,067 | 40,622,067 | (13,073,389 | ) | 27,548,678 | - | ||||||||||||||
Sabal Pointe | Coral Springs, | 1995 | 275 | 1,951,600 | 17,570,508 | - | 3,384,553 | 1,951,600 | 20,955,061 | 22,906,661 | (9,685,458 | ) | 13,221,203 | - | ||||||||||||||
Saddle Ridge | Ashburn, VA | 1989 | 216 | 1,364,800 | 12,283,616 | - | 1,873,416 | 1,364,800 | 14,157,033 | 15,521,833 | (6,790,014 | ) | 8,731,819 | - | ||||||||||||||
Sage Condominium | Everett, WA | 2002 | 123 | 2,500,000 | 12,021,256 | - | 328,641 | 2,500,000 | 12,349,897 | 14,849,897 | (1,114,232 | ) | 13,735,665 | - | ||||||||||||||
Savannah at Park Place | Atlanta, GA | 2001 | 416 | 7,696,095 | 34,114,542 | - | 2,438,417 | 7,696,095 | 36,552,960 | 44,249,054 | (7,216,220 | ) | 37,032,834 | - | ||||||||||||||
Savoy III | Aurora, CO | (F) | - | 659,165 | 1,880,695 | - | - | 659,165 | 1,880,695 | 2,539,861 | - | 2,539,861 | - | |||||||||||||||
Security Manor | Westfield, | 1971 | 63 | 355,456 | 2,376,152 | - | 333,201 | 355,456 | 2,709,353 | 3,064,809 | (809,621 | ) | 2,255,188 | - | ||||||||||||||
Seeley Lake | Lakewood, | 1990 | 522 | 2,760,400 | 24,845,286 | - | 3,378,196 | 2,760,400 | 28,223,482 | 30,983,882 | (12,099,508 | ) | 18,884,374 | - | ||||||||||||||
Seventh & James | Seattle, WA | 1992 | 96 | 663,800 | 5,974,803 | - | 2,245,556 | 663,800 | 8,220,359 | 8,884,159 | (4,038,426 | ) | 4,845,733 | - | ||||||||||||||
Shadow Creek | Winter | 2000 | 280 | 6,000,000 | 21,719,768 | - | 1,049,360 | 6,000,000 | 22,769,128 | 28,769,128 | (4,522,360 | ) | 24,246,768 | - | ||||||||||||||
Sheridan Lake Club | Dania Beach, | 2001 | 240 | 12,000,000 | 23,170,580 | - | 638,868 | 12,000,000 | 23,809,449 | 35,809,449 | (2,256,221 | ) | 33,553,228 | - | ||||||||||||||
Sheridan Ocean Club | Dania Beach, | 1991 | 648 | 18,313,414 | 47,090,930 | - | 9,139,062 | 18,313,414 | 56,229,993 | 74,543,407 | (14,891,767 | ) | 59,651,639 | - | ||||||||||||||
Silver Springs (FL) | Jacksonville, | 1985 | 432 | 1,831,100 | 16,474,735 | - | 5,180,516 | 1,831,100 | 21,655,251 | 23,486,351 | (10,366,665 | ) | 13,119,686 | - | ||||||||||||||
Skylark | Union City, | 1986 | 174 | 1,781,600 | 16,731,916 | - | 1,341,922 | 1,781,600 | 18,073,838 | 19,855,438 | (6,794,474 | ) | 13,060,964 | - | ||||||||||||||
Sonoran | Phoenix, AZ | 1995 | 429 | 2,361,922 | 31,841,724 | - | 2,353,560 | 2,361,922 | 34,195,283 | 36,557,205 | (13,468,766 | ) | 23,088,439 | - | ||||||||||||||
Southwood | Palo Alto, CA | 1985 | 100 | 6,936,600 | 14,324,069 | - | 1,731,565 | 6,936,600 | 16,055,634 | 22,992,234 | (6,275,927 | ) | 16,716,307 | - | ||||||||||||||
Spring Hill Commons | Acton, MA | 1973 | 105 | 1,107,436 | 7,402,980 | - | 4,578,320 | 1,107,436 | 11,981,300 | 13,088,735 | (2,936,496 | ) | 10,152,239 | - | ||||||||||||||
Springbrook Estates | Riverside, CA | (F) | - | 18,200,000 | - | - | - | 18,200,000 | - | 18,200,000 | - | 18,200,000 | - | |||||||||||||||
St. Andrews at Winston | Coconut | 1997 | 284 | 5,680,000 | 19,812,090 | - | 1,552,357 | 5,680,000 | 21,364,448 | 27,044,448 | (5,766,647 | ) | 21,277,800 | - | ||||||||||||||
Stoney Creek | Lakewood, | 1990 | 231 | 1,215,200 | 10,938,134 | - | 1,992,699 | 1,215,200 | 12,930,833 | 14,146,033 | (5,561,951 | ) | 8,584,082 | - | ||||||||||||||
Sturbridge Meadows | Sturbridge, | 1985 | 104 | 702,447 | 4,695,714 | - | 807,772 | 702,447 | 5,503,486 | 6,205,933 | (1,706,453 | ) | 4,499,480 | - | ||||||||||||||
Summer Ridge | Riverside, CA | 1985 | 136 | 602,400 | 5,422,807 | - | 1,912,238 | 602,400 | 7,335,045 | 7,937,445 | (3,466,532 | ) | 4,470,913 | - | ||||||||||||||
S-7
Schedule III -— Real Estate and Accumulated Depreciation
December 31, 20082010 Cost Capitalized Subsequent to Gross Amount Carried Initial Cost to Acquisition at Close of Description Company (Improvements, net) (E) Period 12/31/10 Date of Building & Building & Building & Accumulated Investment in Real Apartment Name Location Construction Units (H) Land Fixtures Land Fixtures Land Fixtures (A) Total (B) Depreciation (C) Estate, Net at 12/31/10 (B) Encumbrances Sabal Palm at Metrowest II Orlando, FL 1997 456 4,560,000 33,907,283 — 2,691,106 4,560,000 36,598,389 41,158,389 (15,830,427 ) 25,327,962 — Sabal Pointe Coral Springs, FL 1995 275 1,951,600 17,570,508 — 3,961,145 1,951,600 21,531,653 23,483,253 (11,635,146 ) 11,848,107 — Saddle Ridge Ashburn, VA 1989 216 1,364,800 12,283,616 — 2,201,030 1,364,800 14,484,646 15,849,446 (7,934,560 ) 7,914,886 — Sage Everett, WA 2002 123 2,500,000 12,021,256 — 412,814 2,500,000 12,434,070 14,934,070 (2,576,867 ) 12,357,203 — Savannah at Park Place Atlanta, GA 2001 416 7,696,095 34,114,542 — 2,628,399 7,696,095 36,742,941 44,439,036 (10,138,404 ) 34,300,632 — Savoy III Aurora, CO (F) — 659,165 4,749,723 — — 659,165 4,749,723 5,408,888 — 5,408,888 — Sawgrass Cove Bradenton, FL 1991 336 3,360,000 12,587,189 — 80,974 3,360,000 12,668,163 16,028,163 (1,947,404 ) 14,080,759 — Scarborough Square Rockville, MD 1967 121 1,815,000 7,608,126 — 2,394,761 1,815,000 10,002,887 11,817,887 (4,923,278 ) 6,894,609 — Sedona Ridge Phoenix, AZ 1989 250 3,750,000 14,750,000 — 254,926 3,750,000 15,004,926 18,754,926 (2,039,282 ) 16,715,644 — Seeley Lake Lakewood, WA 1990 522 2,760,400 24,845,286 — 4,006,480 2,760,400 28,851,766 31,612,166 (14,437,537 ) 17,174,629 — Seventh & James Seattle, WA 1992 96 663,800 5,974,803 — 2,878,988 663,800 8,853,791 9,517,591 (4,849,519 ) 4,668,072 — Shadow Creek Winter Springs, FL 2000 280 6,000,000 21,719,768 — 1,434,843 6,000,000 23,154,611 29,154,611 (6,340,966 ) 22,813,645 — Sheridan Lake Club Dania Beach, FL 2001 240 12,000,000 23,170,580 — 1,252,843 12,000,000 24,423,423 36,423,423 (5,113,176 ) 31,310,247 — Sheridan Ocean Club combined Dania Beach, FL 1991 648 18,313,414 47,091,593 — 14,017,392 18,313,414 61,108,985 79,422,399 (21,027,176 ) 58,395,223 — Siena Terrace Lake Forest, CA 1988 356 8,900,000 24,083,024 — 2,738,600 8,900,000 26,821,624 35,721,624 (11,637,233 ) 24,084,391 — Silver Springs (FL) Jacksonville, FL 1985 432 1,831,100 16,474,735 — 5,779,723 1,831,100 22,254,458 24,085,558 (12,404,671 ) 11,680,887 — Skycrest Valencia, CA 1999 264 10,560,000 25,574,457 — 1,870,144 10,560,000 27,444,601 38,004,601 (10,001,263 ) 28,003,338 — Skylark Union City, CA 1986 174 1,781,600 16,731,916 — 1,608,125 1,781,600 18,340,041 20,121,641 (8,137,578 ) 11,984,063 — Skyline Terrace Burlingame, CA 1967/1987 138 16,836,000 35,414,000 — 469 16,836,000 35,414,469 52,250,469 (227,411 ) 52,023,058 — Skyline Towers Falls Church, VA (G) 1971 939 78,278,200 91,485,591 — 27,969,652 78,278,200 119,455,243 197,733,443 (30,881,457 ) 166,851,986 — Skyview Rancho Santa Margarita, CA 1999 260 3,380,000 21,952,863 — 1,667,929 3,380,000 23,620,792 27,000,792 (9,657,421 ) 17,343,371 — Sonoran Phoenix, AZ 1995 429 2,361,922 31,841,724 — 2,900,306 2,361,922 34,742,030 37,103,952 (16,082,432 ) 21,021,520 — Southwood Palo Alto, CA 1985 100 6,936,600 14,324,069 — 2,065,301 6,936,600 16,389,370 23,325,970 (7,489,798 ) 15,836,172 — Springbrook Estates Riverside, CA (F) — 18,200,000 — — — 18,200,000 — 18,200,000 — 18,200,000 — St. Andrews at Winston Park Coconut Creek, FL 1997 284 5,680,000 19,812,090 — 2,144,175 5,680,000 21,956,265 27,636,265 (7,512,645 ) 20,123,620 — Stoney Creek Lakewood, WA 1990 231 1,215,200 10,938,134 — 2,267,480 1,215,200 13,205,614 14,420,814 (6,703,659 ) 7,717,155 — Summerwood Hayward, CA 1982 162 4,810,644 6,942,743 — 2,132,610 4,810,644 9,075,353 13,885,997 (4,231,400 ) 9,654,597 — Summit & Birch Hill Farmington, CT 1967 186 1,757,438 11,748,112 — 2,916,135 1,757,438 14,664,247 16,421,685 (5,733,897 ) 10,687,788 — Summit at Lake Union Seattle, WA 1995 -1997 150 1,424,700 12,852,461 — 3,097,192 1,424,700 15,949,653 17,374,353 (7,701,759 ) 9,672,594 — Surprise Lake Village Milton, WA 1986 338 4,162,543 21,995,958 — 167,483 4,162,543 22,163,441 26,325,984 (2,484,576 ) 23,841,408 — Sycamore Creek Scottsdale, AZ 1984 350 3,152,000 19,083,727 — 3,055,695 3,152,000 22,139,422 25,291,422 (10,946,251 ) 14,345,171 — Tanasbourne Terrace Hillsboro, OR 1986-1989 373 1,876,700 16,891,205 — 3,764,711 1,876,700 20,655,916 22,532,616 (12,425,399 ) 10,107,217 — Third Square Cambridge, MA (G) 2008/2009 482 27,812,384 228,734,105 — 567,932 27,812,384 229,302,037 257,114,421 (15,770,134 ) 241,344,287 — Tortuga Bay Orlando, FL 2004 314 6,280,000 32,121,779 — 985,669 6,280,000 33,107,448 39,387,448 (7,923,623 ) 31,463,825 — Toscana Irvine, CA 1991/1993 563 39,410,000 50,806,072 — 6,395,983 39,410,000 57,202,055 96,612,055 (21,654,115 ) 74,957,940 — Townes at Herndon Herndon, VA 2002 218 10,900,000 49,216,125 — 576,648 10,900,000 49,792,773 60,692,773 (10,492,949 ) 50,199,824 — Trump Place, 140 Riverside New York, NY (G) 2003 354 103,539,100 94,082,725 — 1,245,121 103,539,100 95,327,846 198,866,946 (20,098,341 ) 178,768,605 — Trump Place, 160 Riverside New York, NY (G) 2001 455 139,933,500 190,964,745 — 4,193,547 139,933,500 195,158,292 335,091,792 (39,008,991 ) 296,082,801 — Trump Place, 180 Riverside New York, NY (G) 1998 516 144,968,250 138,346,681 — 5,245,129 144,968,250 143,591,810 288,560,060 (30,420,203 ) 258,139,857 — Uwajimaya Village Seattle, WA 2002 176 8,800,000 22,188,288 — 231,285 8,800,000 22,419,573 31,219,573 (5,828,856 ) 25,390,717 — Valencia Plantation Orlando, FL 1990 194 873,000 12,819,377 — 2,124,405 873,000 14,943,782 15,816,782 (6,429,174 ) 9,387,608 — Vantage Pointe San Diego, CA (G) 2009 679 9,403,960 190,596,040 — 878,314 9,403,960 191,474,354 200,878,314 (2,779,752 ) 198,098,562 — Versailles (K-Town) Los Angeles, CA 2008 225 10,590,975 44,409,025 — 17,858 10,590,975 44,426,883 55,017,858 (2,028,003 ) 52,989,855 — Victor on Venice Los Angeles, CA (G) 2006 115 10,350,000 35,433,437 — 105,588 10,350,000 35,539,025 45,889,025 (6,273,594 ) 39,615,431 — Villa Encanto Phoenix, AZ 1983 385 2,884,447 22,197,363 — 3,530,421 2,884,447 25,727,784 28,612,231 (12,649,439 ) 15,962,792 — Villa Solana Laguna Hills, CA 1984 272 1,665,100 14,985,678 — 6,271,253 1,665,100 21,256,931 22,922,031 (12,286,928 ) 10,635,103 — Village at Bear Creek Lakewood, CO 1987 472 4,519,700 40,676,390 — 4,115,836 4,519,700 44,792,226 49,311,926 (21,310,226 ) 28,001,700 — Vista Del Largo Mission Viejo, CA 1986-1988 608 4,525,800 40,736,293 — 10,948,915 4,525,800 51,685,208 56,211,008 (30,191,450 ) 26,019,558 — Vista Grove Mesa, AZ 1997/1998 224 1,341,796 12,157,045 — 1,295,291 1,341,796 13,452,336 14,794,132 (6,225,002 ) 8,569,130 — Vista Montana — Residential & Townhomes San Jose, CA (F) — 51,000,000 — — — 51,000,000 — 51,000,000 — 51,000,000 — Vista on Courthouse Arlington, VA 2008 220 15,550,260 69,449,740 — 86,777 15,550,260 69,536,517 85,086,777 (5,267,387 ) 79,819,390 — Waterford at Deerwood Jacksonville, FL 1985 248 1,496,913 10,659,702 — 3,584,784 1,496,913 14,244,486 15,741,399 (6,711,046 ) 9,030,353 — Waterford at Orange Park Orange Park, FL 1986 280 1,960,000 12,098,784 — 2,967,016 1,960,000 15,065,800 17,025,800 (7,417,680 ) 9,608,120 — Waterford Place (CO) Thornton, CO 1998 336 5,040,000 29,946,419 — 1,310,833 5,040,000 31,257,252 36,297,252 (9,793,049 ) 26,504,203 — Waterside Reston, VA 1984 276 20,700,000 27,474,388 — 7,638,031 20,700,000 35,112,419 55,812,419 (9,030,796 ) 46,781,623 — Webster Green Needham, MA 1985 77 1,418,893 9,485,006 — 1,000,811 1,418,893 10,485,817 11,904,710 (3,879,487 ) 8,025,223 — Welleby Lake Club Sunrise, FL 1991 304 3,648,000 17,620,879 — 3,744,103 3,648,000 21,364,982 25,012,982 (9,435,056 ) 15,577,926 — West End Apartments (fka Emerson Place/CRP II) Boston, MA (G) 2008 310 469,546 163,123,022 — 358,369 469,546 163,481,391 163,950,937 (15,522,448 ) 148,428,489 — Westerly at Worldgate Herndon, VA 1995 320 14,568,000 43,620,057 — 1,062,632 14,568,000 44,682,689 59,250,689 (6,046,012 ) 53,204,677 — Westfield Village Centerville, VA 1988 228 7,000,000 23,245,834 — 4,574,728 7,000,000 27,820,562 34,820,562 (8,289,817 ) 26,530,745 — Westridge Tacoma, WA 1987 -1991 714 3,501,900 31,506,082 — 6,551,697 3,501,900 38,057,779 41,559,679 (19,228,990 ) 22,330,689 — Westgate Pasadena Condos Pasadena, CA (F) — 29,977,725 16,130,079 — — 29,977,725 16,130,079 46,107,804 — 46,107,804 — Westgate Pasadena and Green Pasadena, CA (F) — — 390,813 — — — 390,813 390,813 — 390,813 — Westside Villas I Los Angeles, CA 1999 21 1,785,000 3,233,254 — 256,198 1,785,000 3,489,452 5,274,452 (1,324,557 ) 3,949,895 — Westside Villas II Los Angeles, CA 1999 23 1,955,000 3,541,435 — 139,793 1,955,000 3,681,228 5,636,228 (1,307,577 ) 4,328,651 — Westside Villas III Los Angeles, CA 1999 36 3,060,000 5,538,871 — 203,576 3,060,000 5,742,447 8,802,447 (2,045,237 ) 6,757,210 — Westside Villas IV Los Angeles, CA 1999 36 3,060,000 5,539,390 — 212,024 3,060,000 5,751,414 8,811,414 (2,039,061 ) 6,772,353 — Westside Villas V Los Angeles, CA 1999 60 5,100,000 9,224,485 — 368,292 5,100,000 9,592,777 14,692,777 (3,414,998 ) 11,277,779 — Westside Villas VI Los Angeles, CA 1989 18 1,530,000 3,023,523 — 231,964 1,530,000 3,255,487 4,785,487 (1,182,625 ) 3,602,862 — Westside Villas VII Los Angeles, CA 2001 53 4,505,000 10,758,900 — 361,135 4,505,000 11,120,035 15,625,035 (3,377,984 ) 12,247,051 — Wimberly at Deerwood Jacksonville, FL 2000 322 8,000,000 30,057,214 — 1,524,972 8,000,000 31,582,186 39,582,186 (7,060,939 ) 32,521,247 — Winchester Park Riverside, RI 1972 416 2,822,618 18,868,626 — 6,221,418 2,822,618 25,090,044 27,912,662 (10,446,769 ) 17,465,893 — Winchester Wood Riverside, RI 1989 62 683,215 4,567,154 — 798,960 683,215 5,366,114 6,049,329 (2,013,478 ) 4,035,851 — Windsor at Fair Lakes Fairfax, VA 1988 250 10,000,000 28,587,109 — 5,870,235 10,000,000 34,457,344 44,457,344 (9,463,894 ) 34,993,450 —
| Description | Initial Cost to Company | Cost Capitalized Subsequent to Acquisition (Improvements, net) (E) | Gross Amount Carried at Close of Period 12/31/08 | |||||||||||||||||||||||||
Apartment | Location | Date of Construction | Units (H) | Land | Building & Fixtures | Land | Building & Fixtures | Land | Building & Fixtures (A) | Total (B) | Accumulated Depreciation (C) | Investment in Real Estate, Net at 12/31/08 | Encumbrances | |||||||||||||||
Summerset Village II | Chatsworth, | (F) | - | 260,646 | - | - | - | 260,646 | - | 260,646 | - | 260,646 | - | |||||||||||||||
Summerwood | Hayward, | �� | 1982 | 162 | 4,866,600 | 6,942,743 | - | 1,705,627 | 4,866,600 | 8,648,370 | 13,514,970 | (3,405,169 | ) | 10,109,800 | - | |||||||||||||
Summit & Birch Hill | Farmington, | 1967 | 186 | 1,757,438 | 11,748,112 | - | 2,516,753 | 1,757,438 | 14,264,866 | 16,022,303 | (4,297,762 | ) | 11,724,541 | - | ||||||||||||||
Summit at Lake Union | Seattle, WA | 1995 -1997 | 150 | 1,424,700 | 12,852,461 | - | 2,470,657 | 1,424,700 | 15,323,118 | 16,747,818 | (6,377,940 | ) | 10,369,878 | - | ||||||||||||||
Surrey Downs | Bellevue, | 1986 | 122 | 3,057,100 | 7,848,618 | - | 1,090,834 | 3,057,100 | 8,939,452 | 11,996,552 | (3,510,691 | ) | 8,485,861 | - | ||||||||||||||
Sycamore Creek | Scottsdale, | 1984 | 350 | 3,152,000 | 19,083,727 | - | 2,696,569 | 3,152,000 | 21,780,296 | 24,932,296 | (9,188,202 | ) | 15,744,095 | - | ||||||||||||||
Timber Hollow | Chapel Hill, | 1986 | 198 | 800,000 | 11,219,537 | - | 1,597,627 | 800,000 | 12,817,164 | 13,617,164 | (4,956,952 | ) | 8,660,212 | - | ||||||||||||||
Tortuga Bay | Orlando, FL | 2004 | 314 | 6,280,000 | 32,121,779 | - | 784,818 | 6,280,000 | 32,906,597 | 39,186,597 | (5,355,572 | ) | 33,831,024 | - | ||||||||||||||
Toscana | Irvine, CA | 1991/1993 | 563 | 39,410,000 | 50,806,072 | - | 5,490,188 | 39,410,000 | 56,296,260 | 95,706,260 | (17,082,414 | ) | 78,623,846 | - | ||||||||||||||
Townes at Herndon | Herndon, VA | 2002 | 218 | 10,900,000 | 49,216,125 | - | 415,796 | 10,900,000 | 49,631,921 | 60,531,921 | (6,150,653 | ) | 54,381,268 | - | ||||||||||||||
Trump Place, 140 | New York, | 2003 | 354 | 103,539,100 | 94,082,725 | - | 792,105 | 103,539,100 | 94,874,830 | 198,413,930 | (13,387,944 | ) | 185,025,986 | - | ||||||||||||||
Trump Place, 160 | New York, | 2001 | 455 | 139,933,500 | 190,964,745 | - | 1,917,710 | 139,933,500 | 192,882,455 | 332,815,955 | (25,449,168 | ) | 307,366,787 | - | ||||||||||||||
Trump Place, 180 | New York, | 1998 | 516 | 144,968,250 | 138,346,681 | - | 2,810,666 | 144,968,250 | 141,157,347 | 286,125,597 | (19,848,260 | ) | 266,277,338 | - | ||||||||||||||
Turnberry Isle | Dallas, TX | 1994 | 187 | 2,992,000 | 15,287,285 | - | 785,320 | 2,992,000 | 16,072,605 | 19,064,605 | (3,032,799 | ) | 16,031,806 | - | ||||||||||||||
Valencia Plantation | Orlando, FL | 1990 | 194 | 873,000 | 12,819,377 | - | 1,276,090 | 873,000 | 14,095,468 | 14,968,468 | (5,175,393 | ) | 9,793,074 | - | ||||||||||||||
Van Deene Manor | West | 1970 | 111 | 744,491 | 4,976,771 | - | 463,363 | 744,491 | 5,440,133 | 6,184,624 | (1,747,130 | ) | 4,437,495 | - | ||||||||||||||
Versailles | Woodland | 1991 | 253 | 12,650,000 | 33,656,292 | - | 3,247,607 | 12,650,000 | 36,903,899 | 49,553,899 | (8,106,434 | ) | 41,447,465 | - | ||||||||||||||
Victor on Venice | Los Angeles, | 2006 | 115 | 10,350,000 | 35,430,461 | - | 71,040 | 10,350,000 | 35,501,501 | 45,851,501 | (3,415,581 | ) | 42,435,920 | - | ||||||||||||||
View Pointe | Riverside, | 1998 | 208 | 10,400,000 | 26,315,150 | - | 1,111,852 | 10,400,000 | 27,427,002 | 37,827,002 | (3,857,291 | ) | 33,969,711 | - | ||||||||||||||
Villa Solana | Laguna Hills, | 1984 | 272 | 1,665,100 | 14,985,678 | - | 4,376,657 | 1,665,100 | 19,362,334 | 21,027,434 | (10,654,835 | ) | 10,372,600 | - | ||||||||||||||
Village at Bear Creek | Lakewood, | 1987 | 472 | 4,519,700 | 40,676,390 | - | 3,171,117 | 4,519,700 | 43,847,507 | 48,367,207 | (17,943,180 | ) | 30,424,027 | - | ||||||||||||||
Village of Newport | Kent, WA | 1987 | 100 | 416,300 | 3,756,582 | - | 716,348 | 416,300 | 4,472,930 | 4,889,230 | (2,388,644 | ) | 2,500,586 | - | ||||||||||||||
Virgil Square | Los Angeles, | 1979 | 142 | 5,500,000 | 15,216,613 | - | 891,718 | 5,500,000 | 16,108,331 | 21,608,331 | (2,536,834 | ) | 19,071,497 | - | ||||||||||||||
Vista Del Lago | Mission | 1986-1988 | 608 | 4,525,800 | 40,736,293 | - | 8,584,246 | 4,525,800 | 49,320,539 | 53,846,339 | (26,131,688 | ) | 27,714,651 | - | ||||||||||||||
Vista Grove | Mesa, AZ | 1997/1998 | 224 | 1,341,796 | 12,157,045 | - | 1,100,139 | 1,341,796 | 13,257,185 | 14,598,981 | (5,211,612 | ) | 9,387,369 | - | ||||||||||||||
Waterford (Jax) II | Jacksonville, | (F) | - | 566,923 | 62,373 | - | - | 566,923 | 62,373 | 629,296 | - | 629,296 | - | |||||||||||||||
Waterford at Deerwood | Jacksonville, | 1985 | 248 | 1,496,913 | 10,659,702 | - | 2,631,552 | 1,496,913 | 13,291,254 | 14,788,167 | (5,408,393 | ) | 9,379,773 | - | ||||||||||||||
Waterford at Orange | Orange Park, | 1986 | 280 | 1,960,000 | 12,098,784 | - | 2,586,956 | 1,960,000 | 14,685,741 | 16,645,741 | (6,209,873 | ) | 10,435,867 | - | ||||||||||||||
Waterford at the Lakes | Kent, WA | 1990 | 344 | 3,100,200 | 16,140,924 | - | 2,117,935 | 3,100,200 | 18,258,859 | 21,359,059 | (8,117,787 | ) | 13,241,272 | - | ||||||||||||||
Waterside | Reston, VA | 1984 | 276 | 20,700,000 | 27,474,388 | - | 5,802,530 | 20,700,000 | 33,276,917 | 53,976,917 | (5,198,854 | ) | 48,778,063 | - | ||||||||||||||
Webster Green | Needham, | 1985 | 77 | 1,418,893 | 9,485,006 | - | 753,992 | 1,418,893 | 10,238,998 | 11,657,891 | (3,029,786 | ) | 8,628,105 | - | ||||||||||||||
Welleby Lake Club | Sunrise, FL | 1991 | 304 | 3,648,000 | 17,620,879 | - | 2,395,273 | 3,648,000 | 20,016,153 | 23,664,153 | (7,544,345 | ) | 16,119,808 | - | ||||||||||||||
West End Apartments | Boston, MA | 2008 | 310 | 469,546 | 162,675,247 | - | 150,517 | 469,546 | 162,825,764 | 163,295,310 | (3,432,867 | ) | 159,862,443 | - | ||||||||||||||
Westerly at Worldgate | Herndon, VA | 1995 | 320 | 14,568,000 | 43,620,057 | - | 506,338 | 14,568,000 | 44,126,395 | 58,694,395 | (2,125,843 | ) | 56,568,552 | - | ||||||||||||||
Westfield Village | Centerville, | 1988 | 228 | 7,000,000 | 23,245,834 | - | 4,334,790 | 7,000,000 | 27,580,624 | 34,580,624 | (5,618,188 | ) | 28,962,435 | - | ||||||||||||||
Westridge | Tacoma, WA | 1987 -1991 | 714 | 3,501,900 | 31,506,082 | - | 5,550,220 | 3,501,900 | 37,056,302 | 40,558,202 | (16,042,016 | ) | 24,516,186 | - | ||||||||||||||
Westside Villas I | Los Angeles, | 1999 | 21 | 1,785,000 | 3,233,254 | - | 215,322 | 1,785,000 | 3,448,576 | 5,233,576 | (1,087,925 | ) | 4,145,652 | - | ||||||||||||||
Westside Villas II | Los Angeles, | 1999 | 23 | 1,955,000 | 3,541,435 | - | 110,759 | 1,955,000 | 3,652,193 | 5,607,193 | (1,038,765 | ) | 4,568,428 | - | ||||||||||||||
Westside Villas III | Los Angeles, | 1999 | 36 | 3,060,000 | 5,538,871 | - | 159,184 | 3,060,000 | 5,698,055 | 8,758,055 | (1,635,012 | ) | 7,123,044 | - | ||||||||||||||
Westside Villas IV | Los Angeles, | 1999 | 36 | 3,060,000 | 5,539,390 | - | 166,944 | 3,060,000 | 5,706,334 | 8,766,334 | (1,621,210 | ) | 7,145,125 | - | ||||||||||||||
Westside Villas V | Los Angeles, | 1999 | 60 | 5,100,000 | 9,224,485 | - | 293,063 | 5,100,000 | 9,517,549 | 14,617,549 | (2,715,891 | ) | 11,901,657 | - | ||||||||||||||
Westside Villas VI | Los Angeles, | 1989 | 18 | 1,530,000 | 3,023,523 | - | 208,625 | 1,530,000 | 3,232,148 | 4,762,148 | (937,683 | ) | 3,824,465 | - | ||||||||||||||
Westside Villas VII | Los Angeles, | 2001 | 53 | 4,505,000 | 10,758,900 | - | 295,141 | 4,505,000 | 11,054,040 | 15,559,040 | (2,584,070 | ) | 12,974,970 | - | ||||||||||||||
Whispering Oaks | Walnut | 1974 | 316 | 2,170,800 | 19,539,586 | - | 3,710,991 | 2,170,800 | 23,250,577 | 25,421,377 | (10,728,477 | ) | 14,692,901 | - | ||||||||||||||
Wimberly at Deerwood | Jacksonville, | 2000 | 322 | 8,000,000 | 30,057,214 | - | 1,200,755 | 8,000,000 | 31,257,969 | 39,257,969 | (4,444,345 | ) | 34,813,624 | - | ||||||||||||||
Winchester Park | Riverside, RI | 1972 | 416 | 2,822,618 | 18,868,626 | - | 4,044,490 | 2,822,618 | 22,913,116 | 25,735,734 | (8,072,828 | ) | 17,662,906 | - | ||||||||||||||
Winchester Wood | Riverside, RI | 1989 | 62 | 683,215 | 4,567,154 | - | 652,801 | 683,215 | 5,219,955 | 5,903,171 | (1,544,324 | ) | 4,358,846 | - | ||||||||||||||
Windmont | Atlanta, GA | 1988 | 178 | 3,204,000 | 7,128,448 | - | 1,167,004 | 3,204,000 | 8,295,453 | 11,499,453 | (2,873,715 | ) | 8,625,738 | - | ||||||||||||||
Windsor at Fair Lakes | Fairfax, VA | 1988 | 250 | 10,000,000 | 28,587,109 | - | 4,391,868 | 10,000,000 | 32,978,976 | 42,978,976 | (6,384,022 | ) | 36,594,954 | - | ||||||||||||||
Winston, The (FL) | Pembroke | 2001/2003 | 464 | 18,561,000 | 49,527,569 | - | 598,991 | 18,561,000 | 50,126,560 | 68,687,560 | (2,862,088 | ) | 65,825,472 | - | ||||||||||||||
Wood Creek (CA) | Pleasant Hill, | 1987 | 256 | 9,729,900 | 23,009,768 | - | 2,683,456 | 9,729,900 | 25,693,224 | 35,423,124 | (10,554,587 | ) | 24,868,537 | - | ||||||||||||||
Woodbridge | Cary, GA | 1993-1995 | 128 | 737,400 | 6,636,870 | - | 1,256,261 | 737,400 | 7,893,130 | 8,630,530 | (3,742,944 | ) | 4,887,586 | - | ||||||||||||||
Woodbridge (CT) | Newington, | 1968 | 73 | 498,377 | 3,331,548 | - | 696,573 | 498,377 | 4,028,121 | 4,526,498 | (1,249,601 | ) | 3,276,897 | - | ||||||||||||||
Woodbridge II | Cary, GA | 1993 -1995 | 216 | 1,244,600 | 11,243,364 | - | 1,769,616 | 1,244,600 | 13,012,980 | 14,257,580 | (5,996,407 | ) | 8,261,172 | - | ||||||||||||||
Woodleaf | Campbell, | 1984 | 178 | 8,550,600 | 16,988,183 | - | 1,299,902 | 8,550,600 | 18,288,085 | 26,838,685 | (6,785,704 | ) | 20,052,981 | - | ||||||||||||||
Woodside | Lorton, VA | 1987 | 252 | 1,326,000 | 12,510,903 | - | 5,576,996 | 1,326,000 | 18,087,898 | 19,413,898 | (8,752,563 | ) | 10,661,335 | - | ||||||||||||||
Management Business | Chicago, IL | (D) | - | - | - | - | 76,941,326 | - | 76,941,326 | 76,941,326 | (48,005,088 | ) | 28,936,238 | - | ||||||||||||||
Operating Partnership | Chicago, IL | (F) | - | - | 800,716 | - | - | - | 800,716 | 800,716 | - | 800,716 | - | |||||||||||||||
ERPOP Wholly | 78,813 | 2,377,679,457 | 7,467,312,964 | - | 835,115,646 | 2,377,679,457 | 8,302,428,610 | �� | 10,680,108,067 | (2,211,404,675 | ) | 8,468,703,392 | - | |||||||||||||||
ERPOP Wholly | ||||||||||||||||||||||||||||
740 River Drive | St. Paul, MN | 1962 | 163 | 1,626,700 | 11,234,943 | - | 3,814,496 | 1,626,700 | 15,049,439 | 16,676,139 | (7,016,877 | ) | 9,659,262 | 4,443,675 | ||||||||||||||
929 House | Cambridge, | 1975 | 127 | 3,252,993 | 21,745,595 | - | 2,203,875 | 3,252,993 | 23,949,470 | 27,202,463 | (7,111,703 | ) | 20,090,759 | 3,579,583 | ||||||||||||||
Academy Village | North | 1989 | 248 | 25,000,000 | 23,593,194 | - | 5,060,244 | 25,000,000 | 28,653,438 | 53,653,438 | (5,050,444 | ) | 48,602,994 | 20,000,000 | ||||||||||||||
Acton Courtyard | Berkeley, | 2003 | 71 | 5,550,000 | 15,785,509 | - | 20,826 | 5,550,000 | 15,806,335 | 21,356,335 | (1,445,857 | ) | 19,910,478 | 9,920,000 | ||||||||||||||
Alborada | Fremont, CA | 1999 | 442 | 24,310,000 | 59,214,129 | - | 1,938,453 | 24,310,000 | 61,152,582 | 85,462,582 | (18,810,619 | ) | 66,651,963 | (M | ) | |||||||||||||
Alexander on Ponce | Atlanta, GA | 2003 | 330 | 9,900,000 | 35,819,022 | - | 1,150,190 | 9,900,000 | 36,969,212 | 46,869,212 | (5,159,227 | ) | 41,709,985 | 28,880,000 | ||||||||||||||
Amberton | Manassas, | 1986 | 190 | 900,600 | 11,921,815 | - | 2,240,783 | 900,600 | 14,162,597 | 15,063,197 | (6,180,920 | ) | 8,882,278 | 10,705,000 | ||||||||||||||
Arbor Terrace | Sunnyvale, | 1979 | 174 | 9,057,300 | 18,483,642 | - | 1,899,788 | 9,057,300 | 20,383,430 | 29,440,730 | (7,581,207 | ) | 21,859,524 | (O | ) | |||||||||||||
Arboretum (MA) | Canton, MA | 1989 | 156 | 4,685,900 | 10,992,751 | - | 1,562,523 | 4,685,900 | 12,555,274 | 17,241,174 | (4,959,265 | ) | 12,281,909 | (I | ) | |||||||||||||
Arden Villas | Orlando, FL | 1999 | 336 | 5,500,000 | 28,600,796 | - | 2,801,482 | 5,500,000 | 31,402,278 | 36,902,278 | (5,081,696 | ) | 31,820,581 | 23,009,902 | ||||||||||||||
Artech Building | Berkeley, | 2002 | 21 | 1,642,000 | 9,152,518 | - | 20,518 | 1,642,000 | 9,173,036 | 10,815,036 | (733,239 | ) | 10,081,798 | 3,200,000 | ||||||||||||||
Artisan Square | Northridge, | 2002 | 140 | 7,000,000 | 20,537,359 | - | 588,909 | 7,000,000 | 21,126,268 | 28,126,268 | (4,720,000 | ) | 23,406,268 | (L | ) | |||||||||||||
Avanti | Anaheim, | 1987 | 162 | 12,960,000 | 18,495,974 | - | 705,205 | 12,960,000 | 19,201,179 | 32,161,179 | (2,239,088 | ) | 29,922,092 | 19,850,000 | ||||||||||||||
Bachenheimer Building | Berkeley, | 2004 | 44 | 3,439,000 | 13,866,379 | - | 15,148 | 3,439,000 | 13,881,527 | 17,320,527 | (1,176,425 | ) | 16,144,102 | 8,585,000 | ||||||||||||||
Bay Hill | Long Beach, | 2002 | 160 | 7,600,000 | 27,437,239 | - | 605,091 | 7,600,000 | 28,042,330 | 35,642,330 | (5,019,465 | ) | 30,622,865 | 13,994,000 | ||||||||||||||
Bellagio Apartment | Scottsdale, | 1995 | 202 | 2,626,000 | 16,025,041 | - | 765,530 | 2,626,000 | 16,790,571 | 19,416,571 | (3,165,368 | ) | 16,251,202 | (O | ) | |||||||||||||
Berkeleyan | Berkeley, | 1998 | 56 | 4,377,000 | 16,022,110 | - | 178,584 | 4,377,000 | 16,200,694 | 20,577,694 | (1,387,160 | ) | 19,190,534 | 8,433,787 | ||||||||||||||
Bradley Park | Puyallup, | 1999 | 155 | 3,813,000 | 18,313,645 | - | 265,475 | 3,813,000 | 18,579,119 | 22,392,119 | (3,025,433 | ) | 19,366,686 | 11,822,178 | ||||||||||||||
Briar Knoll Apts | Vernon, CT | 1986 | 150 | 928,972 | 6,209,988 | - | 1,099,911 | 928,972 | 7,309,899 | 8,238,871 | (2,365,246 | ) | 5,873,625 | 5,389,711 | ||||||||||||||
Briarwood (CA) | Sunnyvale, | 1985 | 192 | 9,991,500 | 22,247,278 | - | 1,199,469 | 9,991,500 | 23,446,747 | 33,438,247 | (8,558,070 | ) | 24,880,177 | 12,800,000 | ||||||||||||||
Brookside (MD) | Frederick, | 1993 | 228 | 2,736,000 | 7,934,069 | - | 1,865,601 | 2,736,000 | 9,799,670 | 12,535,670 | (3,888,020 | ) | 8,647,650 | 8,170,000 | ||||||||||||||
Canterbury | Germantown, | 1986 | 544 | 2,781,300 | 32,942,531 | - | 13,270,979 | 2,781,300 | 46,213,510 | 48,994,810 | (19,678,507 | ) | 29,316,302 | 31,680,000 | ||||||||||||||
Cape House I | Jacksonville, | 1998 | 240 | 4,800,000 | 22,484,240 | - | 139,879 | 4,800,000 | 22,624,118 | 27,424,118 | (1,896,922 | ) | 25,527,196 | 14,126,543 | ||||||||||||||
Cape House II | Jacksonville, | 1998 | 240 | 4,800,000 | 22,229,836 | - | 1,138,404 | 4,800,000 | 23,368,240 | 28,168,240 | (1,944,259 | ) | 26,223,980 | 13,845,257 | ||||||||||||||
Carmel Terrace | San Diego, | 1988-1989 | 384 | 2,288,300 | 20,596,281 | - | 9,451,926 | 2,288,300 | 30,048,206 | 32,336,506 | (13,123,742 | ) | 19,212,764 | (N | ) | |||||||||||||
S-8
Schedule III -— Real Estate and Accumulated Depreciation
December 31, 20082010 Cost Capitalized Subsequent to Gross Amount Carried Initial Cost to Acquisition at Close of Description Company (Improvements, net) (E) Period 12/31/10 Date of Building & Building & Building & Accumulated Investment in Real Apartment Name Location Construction Units (H) Land Fixtures Land Fixtures Land Fixtures (A) Total (B) Depreciation (C) Estate, Net at 12/31/10 (B) Encumbrances Winston, The (FL) Pembroke Pines, FL 2001/2003 464 18,561,000 49,527,569 — 1,617,923 18,561,000 51,145,492 69,706,492 (8,441,759 ) 61,264,733 — Wood Creek (CA) Pleasant Hill, CA 1987 256 9,729,900 23,009,768 — 4,472,213 9,729,900 27,481,981 37,211,881 (12,645,672 ) 24,566,209 — Woodbridge (CT) Newington, CT 1968 73 498,377 3,331,548 — 862,784 498,377 4,194,332 4,692,709 (1,635,504 ) 3,057,205 — Woodleaf Campbell, CA 1984 178 8,550,600 16,988,183 — 1,418,889 8,550,600 18,407,072 26,957,672 (8,148,131 ) 18,809,541 — Woodside Lorton, VA 1987 252 1,326,000 12,510,903 — 5,846,332 1,326,000 18,357,235 19,683,235 (10,821,201 ) 8,862,034 — Management Business Chicago, IL (D) — — — — 79,865,530 — 79,865,530 79,865,530 (61,109,987 ) 18,755,543 — Operating Partnership Chicago, IL (F) — — 804,852 — — — 804,852 804,852 — 804,852 — 80,239 2,929,343,369 8,675,464,206 — 950,595,062 2,929,343,369 9,626,059,268 12,555,402,637 (2,847,912,228 ) 9,707,490,409 — 929 House Cambridge, MA (G) 1975 127 3,252,993 21,745,595 — 4,361,591 3,252,993 26,107,186 29,360,179 (9,147,568 ) 20,212,611 3,059,026 Academy Village North Hollywood, CA 1989 248 25,000,000 23,593,194 — 5,642,404 25,000,000 29,235,598 54,235,598 (8,614,636 ) 45,620,962 20,000,000 Acappella Pasadena, CA 2002 143 5,839,548 29,360,452 — — 5,839,548 29,360,452 35,200,000 — 35,200,000 20,886,508 Acton Courtyard Berkeley, CA (G) 2003 71 5,550,000 15,785,509 — 58,895 5,550,000 15,844,404 21,394,404 (2,806,816 ) 18,587,588 9,920,000 Alborada Fremont, CA 1999 442 24,310,000 59,214,129 — 2,251,542 24,310,000 61,465,671 85,775,671 (23,124,504 ) 62,651,167 (J ) Alexander on Ponce Atlanta, GA 2003 330 9,900,000 35,819,022 — 1,541,765 9,900,000 37,360,787 47,260,787 (8,232,441 ) 39,028,346 28,880,000 Amberton Manassas, VA 1986 190 900,600 11,921,815 — 2,406,495 900,600 14,328,310 15,228,910 (7,347,971 ) 7,880,939 10,705,000 Arbor Terrace Sunnyvale, CA 1979 175 9,057,300 18,483,642 — 2,226,056 9,057,300 20,709,698 29,766,998 (9,184,819 ) 20,582,179 (L ) Arboretum (MA) Canton, MA 1989 156 4,685,900 10,992,751 — 1,798,509 4,685,900 12,791,260 17,477,160 (6,000,939 ) 11,476,221 (I ) Artech Building Berkeley, CA (G) 2002 21 1,642,000 9,152,518 — 85,975 1,642,000 9,238,493 10,880,493 (1,437,190 ) 9,443,303 3,200,000 Artisan Square Northridge, CA 2002 140 7,000,000 20,537,359 — 687,091 7,000,000 21,224,450 28,224,450 (6,239,094 ) 21,985,356 22,779,715 Avanti Anaheim, CA 1987 162 12,960,000 18,497,683 — 1,018,387 12,960,000 19,516,070 32,476,070 (4,132,155 ) 28,343,915 19,850,000 Bachenheimer Building Berkeley, CA (G) 2004 44 3,439,000 13,866,379 — 42,240 3,439,000 13,908,619 17,347,619 (2,287,866 ) 15,059,753 8,585,000 Bella Vista Apartments at Boca Del Mar Boca Raton, FL 1985 392 11,760,000 20,190,252 — 13,328,327 11,760,000 33,518,579 45,278,579 (13,414,974 ) 31,863,605 26,134,010 Bellagio Apartment Homes Scottsdale, AZ 1995 202 2,626,000 16,025,041 — 953,738 2,626,000 16,978,779 19,604,779 (4,541,961 ) 15,062,818 (L ) Berkeleyan Berkeley, CA (G) 1998 56 4,377,000 16,022,110 — 264,145 4,377,000 16,286,255 20,663,255 (2,735,637 ) 17,927,618 8,290,000 Bradley Park Puyallup, WA 1999 155 3,813,000 18,313,645 — 388,646 3,813,000 18,702,291 22,515,291 (4,995,318 ) 17,519,973 11,143,586 Briarwood (CA) Sunnyvale, CA 1985 192 9,991,500 22,247,278 — 1,434,998 9,991,500 23,682,276 33,673,776 (10,266,159 ) 23,407,617 12,800,000 Brookside (CO) Boulder, CO 1993 144 3,600,400 10,211,159 — 1,520,927 3,600,400 11,732,086 15,332,486 (5,075,082 ) 10,257,404 (L ) Canterbury Germantown, MD (I) 1986 544 2,781,300 32,942,531 — 13,914,331 2,781,300 46,856,862 49,638,162 (24,687,359 ) 24,950,803 31,680,000 Cape House I Jacksonville, FL 1998 240 4,800,000 22,484,240 — 426,982 4,800,000 22,911,222 27,711,222 (4,507,742 ) 23,203,480 13,748,202 Cape House II Jacksonville, FL 1998 240 4,800,000 22,229,836 — 1,689,141 4,800,000 23,918,977 28,718,977 (4,773,188 ) 23,945,789 13,302,929 Carmel Terrace San Diego, CA 1988-1989 384 2,288,300 20,596,281 — 9,979,210 2,288,300 30,575,491 32,863,791 (16,480,043 ) 16,383,748 (K ) Cascade at Landmark Alexandria, VA 1990 277 3,603,400 19,657,554 — 6,814,326 3,603,400 26,471,880 30,075,280 (12,856,433 ) 17,218,847 31,921,089 Centennial Court Seattle, WA (G) 2001 187 3,800,000 21,280,039 — 362,829 3,800,000 21,642,868 25,442,868 (5,029,405 ) 20,413,463 15,557,428 Centennial Tower Seattle, WA (G) 1991 221 5,900,000 48,800,339 — 2,046,434 5,900,000 50,846,773 56,746,773 (11,438,821 ) 45,307,952 25,300,790 Chelsea Square Redmond, WA 1991 113 3,397,100 9,289,074 — 1,388,566 3,397,100 10,677,640 14,074,740 (4,562,296 ) 9,512,444 (L ) Church Corner Cambridge, MA (G) 1987 85 5,220,000 16,744,643 — 1,179,544 5,220,000 17,924,187 23,144,187 (4,248,578 ) 18,895,609 12,000,000 Cierra Crest Denver, CO 1996 480 4,803,100 34,894,898 — 4,402,011 4,803,100 39,296,909 44,100,009 (18,210,852 ) 25,889,157 (L ) City Pointe Fullerton, CA (G) 2004 183 6,863,792 36,476,207 — 83,706 6,863,792 36,559,913 43,423,705 (2,707,002 ) 40,716,703 23,503,206 Colorado Pointe Denver, CO 2006 193 5,790,000 28,815,766 — 408,628 5,790,000 29,224,394 35,014,394 (6,452,888 ) 28,561,506 (K ) Conway Court Roslindale, MA 1920 28 101,451 710,524 — 229,420 101,451 939,944 1,041,395 (395,244 ) 646,151 260,117 Copper Canyon Highlands Ranch, CO 1999 222 1,442,212 16,251,114 — 1,150,650 1,442,212 17,401,764 18,843,976 (7,322,122 ) 11,521,854 (K ) Country Brook Chandler, AZ 1986-1996 396 1,505,219 29,542,535 — 3,653,889 1,505,219 33,196,424 34,701,643 (15,485,956 ) 19,215,687 (K ) Country Club Lakes Jacksonville, FL 1997 555 15,000,000 41,055,786 — 4,105,750 15,000,000 45,161,536 60,161,536 (11,315,474 ) 48,846,062 32,097,598 Creekside (San Mateo) San Mateo, CA 1985 192 9,606,600 21,193,232 — 2,040,890 9,606,600 23,234,122 32,840,722 (9,971,049 ) 22,869,673 (L ) Crescent at Cherry Creek Denver, CO 1994 216 2,594,000 15,149,470 — 2,620,271 2,594,000 17,769,741 20,363,741 (8,074,935 ) 12,288,806 (K ) Deerwood (SD) San Diego, CA 1990 316 2,082,095 18,739,815 — 13,007,845 2,082,095 31,747,660 33,829,755 (17,756,307 ) 16,073,448 (K ) Estates at Maitland Summit Orlando, FL 1998 272 9,520,000 28,352,160 — 678,371 9,520,000 29,030,531 38,550,531 (7,308,841 ) 31,241,690 (L ) Estates at Tanglewood Westminster, CO 2003 504 7,560,000 51,256,538 — 1,850,357 7,560,000 53,106,895 60,666,895 (12,304,895 ) 48,362,000 (J ) Fairfield Stamford, CT (G) 1996 263 6,510,200 39,690,120 — 5,118,992 6,510,200 44,809,112 51,319,312 (19,894,444 ) 31,424,868 34,595,000 Fine Arts Building Berkeley, CA (G) 2004 100 7,817,000 26,462,772 — 58,091 7,817,000 26,520,863 34,337,863 (4,506,280 ) 29,831,583 16,215,000 Gaia Building Berkeley, CA (G) 2000 91 7,113,000 25,623,826 — 117,077 7,113,000 25,740,903 32,853,903 (4,345,971 ) 28,507,932 14,630,000 Gateway at Malden Center Malden, MA (G) 1988 203 9,209,780 25,722,666 — 7,947,656 9,209,780 33,670,322 42,880,102 (10,662,848 ) 32,217,254 14,970,000 Geary Court Yard San Francisco, CA 1990 164 1,722,400 15,471,429 — 2,040,242 1,722,400 17,511,671 19,234,071 (8,300,938 ) 10,933,133 18,893,440 Glen Meadow Franklin, MA 1971 288 2,339,330 16,133,588 — 3,534,410 2,339,330 19,667,998 22,007,328 (8,107,522 ) 13,899,806 619,538 Grandeville at River Place Oviedo, FL 2002 280 6,000,000 23,114,693 — 1,520,490 6,000,000 24,635,183 30,635,183 (6,872,649 ) 23,762,534 28,890,000 Greenhaven Union City, CA 1983 250 7,507,000 15,210,399 — 2,970,066 7,507,000 18,180,465 25,687,465 (8,456,557 ) 17,230,908 10,975,000 Greenhouse — Frey Road Kennesaw, GA 1985 489 2,467,200 22,187,443 — 4,922,373 2,467,200 27,109,816 29,577,016 (16,164,084 ) 13,412,932 19,700,000 Greenwood Park Centennial, CO 1994 291 4,365,000 38,372,440 — 1,136,402 4,365,000 39,508,842 43,873,842 (6,846,735 ) 37,027,107 (L ) Greenwood Plaza Centennial, CO 1996 266 3,990,000 35,846,708 — 1,658,135 3,990,000 37,504,843 41,494,843 (6,529,493 ) 34,965,350 (L ) Harbor Steps Seattle, WA (G) 2000 730 59,900,000 158,829,432 — 5,787,753 59,900,000 164,617,185 224,517,185 (34,944,472 ) 189,572,713 125,926,373 Hathaway Long Beach, CA 1987 385 2,512,500 22,611,912 — 6,365,675 2,512,500 28,977,587 31,490,087 (15,770,720 ) 15,719,367 46,517,800 Heights on Capitol Hill Seattle, WA (G) 2006 104 5,425,000 21,138,028 — 55,704 5,425,000 21,193,732 26,618,732 (3,965,879 ) 22,652,853 19,320,000 Heritage at Stone Ridge Burlington, MA 2005 180 10,800,000 31,808,335 — 607,280 10,800,000 32,415,615 43,215,615 (7,307,875 ) 35,907,740 28,150,164 Heronfield Kirkland, WA 1990 202 9,245,000 27,018,110 — 1,212,853 9,245,000 28,230,963 37,475,963 (5,306,819 ) 32,169,144 (K ) Highlands at Cherry Hill Cherry Hills, NJ 2002 170 6,800,000 21,459,108 — 582,660 6,800,000 22,041,768 28,841,768 (4,883,071 ) 23,958,697 14,947,792 Ivory Wood Bothell, WA 2000 144 2,732,800 13,888,282 — 543,271 2,732,800 14,431,553 17,164,353 (3,798,957 ) 13,365,396 8,020,000 Jaclen Towers Beverly, MA 1976 100 437,072 2,921,735 — 1,125,390 437,072 4,047,125 4,484,197 (1,826,858 ) 2,657,339 1,208,416 Kelvin Court (fka Alta Pacific) Irvine, CA 2008 132 10,752,145 34,628,114 — 11,381 10,752,145 34,639,495 45,391,640 (3,455,525 ) 41,936,115 28,260,000 La Terrazza at Colma Station Colma, CA (G) 2005 153 — 41,251,043 — 458,671 — 41,709,714 41,709,714 (6,759,707 ) 34,950,007 25,940,000 LaSalle Beaverton, OR (G) 1998 554 7,202,000 35,877,612 — 2,584,539 7,202,000 38,462,151 45,664,151 (12,221,817 ) 33,442,334 28,342,496 Liberty Park Brain Tree, MA 2000 202 5,977,504 26,749,111 — 1,935,923 5,977,504 28,685,034 34,662,538 (8,587,844 ) 26,074,694 24,980,280 Liberty Tower Arlington, VA (G) 2008 235 16,382,822 83,817,078 — 98,458 16,382,822 83,915,536 100,298,358 (2,774,628 ) 97,523,730 49,160,870
| Description | Initial Cost to Company | Cost Capitalized Subsequent to Acquisition (Improvements, net) (E) | Gross Amount Carried at Close of Period 12/31/08 | |||||||||||||||||||||||||
Apartment | Location | Date of Construction | Units (H) | Land | Building & Fixtures | Land | Building & Fixtures | Land | Building & Fixtures (A) | Total (B) | Accumulated Depreciation (C) | Investment in Real Estate, Net at 12/31/08 | Encumbrances | |||||||||||||||
Cedar Glen | Reading, MA | 1980 | 114 | 1,248,505 | 8,346,003 | - | 1,187,654 | 1,248,505 | 9,533,658 | 10,782,163 | (2,908,800 | ) | 7,873,363 | 565,826 | ||||||||||||||
Centennial Court | Seattle, WA | 2001 | 187 | 3,800,000 | 21,280,039 | - | 231,875 | 3,800,000 | 21,511,914 | 25,311,914 | (3,429,919 | ) | 21,881,995 | 16,650,973 | ||||||||||||||
Centennial Tower | Seattle, WA | 1991 | 221 | 5,900,000 | 48,800,339 | - | 1,329,414 | 5,900,000 | 50,129,754 | 56,029,754 | (7,615,172 | ) | 48,414,582 | 26,654,187 | ||||||||||||||
Chelsea Square | Redmond, | 1991 | 113 | 3,397,100 | 9,289,074 | - | 675,988 | 3,397,100 | 9,965,062 | 13,362,162 | (3,758,639 | ) | 9,603,523 | (O | ) | |||||||||||||
Chestnut Glen | Abington, MA | 1983 | 130 | 1,178,965 | 7,881,139 | - | 772,743 | 1,178,965 | 8,653,882 | 9,832,847 | (2,687,565 | ) | 7,145,282 | 2,070,522 | ||||||||||||||
Church Corner | Cambridge, | 1987 | 85 | 5,220,000 | 16,744,643 | - | 660,565 | 5,220,000 | 17,405,209 | 22,625,209 | (2,843,742 | ) | 19,781,467 | 12,000,000 | ||||||||||||||
Cierra Crest | Denver, CO | 1996 | 480 | 4,803,100 | 34,894,898 | - | 3,764,371 | 4,803,100 | 38,659,269 | 43,462,369 | (15,036,193 | ) | 28,426,176 | (O | ) | |||||||||||||
Club at Tanasbourne | Hillsboro, OR | 1990 | 352 | 3,521,300 | 16,257,934 | - | �� | 2,794,973 | 3,521,300 | 19,052,908 | 22,574,208 | (8,415,876 | ) | 14,158,332 | (J | ) | ||||||||||||
Colorado Pointe | Denver, CO | 2006 | 193 | 5,790,000 | 28,815,766 | - | 181,234 | 5,790,000 | 28,997,000 | 34,787,000 | (3,611,292 | ) | 31,175,708 | (N | ) | |||||||||||||
Conway Court | Roslindale, | 1920 | 28 | 101,451 | 710,524 | - | 189,868 | 101,451 | 900,392 | 1,001,843 | (302,174 | ) | 699,670 | 320,510 | ||||||||||||||
Copper Canyon | Highlands | 1999 | 222 | 1,442,212 | 16,251,114 | - | 956,998 | 1,442,212 | 17,208,112 | 18,650,323 | (6,010,065 | ) | 12,640,258 | (N | ) | |||||||||||||
Country Brook | Chandler, AZ | 1986-1996 | 396 | 1,505,219 | 29,542,535 | - | 3,011,345 | 1,505,219 | 32,553,880 | 34,059,099 | (12,913,064 | ) | 21,146,034 | (N | ) | |||||||||||||
Country Club Lakes | Jacksonville, | 1997 | 555 | 15,000,000 | 41,055,786 | - | 2,799,686 | 15,000,000 | 43,855,472 | 58,855,472 | (7,138,928 | ) | 51,716,544 | 33,175,246 | ||||||||||||||
Creekside (San Mateo) | San Mateo, | 1985 | 192 | 9,606,600 | 21,193,232 | - | 1,216,508 | 9,606,600 | 22,409,740 | 32,016,340 | (8,326,697 | ) | 23,689,643 | (O | ) | |||||||||||||
Crescent at Cherry | Denver, CO | 1994 | 216 | 2,594,000 | 15,149,470 | - | 1,479,658 | 2,594,000 | 16,629,128 | 19,223,128 | (6,700,229 | ) | 12,522,899 | (N | ) | |||||||||||||
Crown Court | Scottsdale, AZ | 1987 | 416 | 3,156,600 | 28,414,599 | - | 5,992,849 | 3,156,600 | 34,407,448 | 37,564,048 | (14,449,672 | ) | 23,114,375 | (K | ) | |||||||||||||
Deerwood (Corona) | Corona, CA | 1992 | 316 | 4,742,200 | 20,272,892 | - | 2,993,969 | 4,742,200 | 23,266,861 | 28,009,061 | (9,789,446 | ) | 18,219,615 | (L | ) | |||||||||||||
Deerwood (SD) | San Diego, | 1990 | 316 | 2,082,095 | 18,739,815 | - | 11,056,580 | 2,082,095 | 29,796,395 | 31,878,490 | (14,661,895 | ) | 17,216,595 | (N | ) | |||||||||||||
Eastbridge | Dallas, TX | 1998 | 169 | 3,380,000 | 11,860,382 | - | 784,905 | 3,380,000 | 12,645,287 | 16,025,287 | (3,692,104 | ) | 12,333,184 | 7,435,675 | ||||||||||||||
Estates at Maitland | Orlando, FL | 1998 | 272 | 9,520,000 | 28,352,160 | - | 431,179 | 9,520,000 | 28,783,338 | 38,303,338 | (4,079,299 | ) | 34,224,039 | (O | ) | |||||||||||||
Estates at Tanglewood | Westminster, | 2003 | 504 | 7,560,000 | 51,256,538 | - | 1,325,283 | 7,560,000 | 52,581,821 | 60,141,821 | (8,147,350 | ) | 51,994,472 | (M | ) | |||||||||||||
Fine Arts Building | Berkeley, CA | 2004 | 100 | 7,817,000 | 26,462,772 | - | 25,598 | 7,817,000 | 26,488,370 | 34,305,370 | (2,318,833 | ) | 31,986,537 | 16,215,000 | ||||||||||||||
Fireside Park | Rockville, | 1961 | 236 | 4,248,000 | 9,977,101 | - | 2,837,378 | 4,248,000 | 12,814,479 | 17,062,479 | (5,097,298 | ) | 11,965,180 | 8,095,000 | ||||||||||||||
Gaia Building | Berkeley, CA | 2000 | 91 | 7,113,000 | 25,623,826 | - | 44,661 | 7,113,000 | 25,668,487 | 32,781,487 | (2,237,949 | ) | 30,543,538 | 14,630,000 | ||||||||||||||
Gateway at Malden | Malden, MA | 1988 | 203 | 9,209,780 | 25,722,666 | - | 5,867,208 | 9,209,780 | 31,589,874 | 40,799,654 | (7,320,861 | ) | 33,478,793 | 14,970,000 | ||||||||||||||
Geary Court Yard | San Francisco, | 1990 | 164 | 1,722,400 | 15,471,429 | - | 1,703,029 | 1,722,400 | 17,174,458 | 18,896,858 | (6,841,228 | ) | 12,055,630 | 19,350,778 | ||||||||||||||
Glen Grove | Wellesley, | 1979 | 125 | 1,344,601 | 8,988,383 | - | 980,913 | 1,344,601 | 9,969,295 | 11,313,896 | (3,046,409 | ) | 8,267,488 | 287,311 | ||||||||||||||
Glen Meadow | Franklin, MA | 1971 | 288 | 2,339,330 | 17,796,431 | - | 2,555,165 | 2,339,330 | 20,351,596 | 22,690,927 | (6,295,888 | ) | 16,395,039 | 1,108,838 | ||||||||||||||
Gosnold Grove | East | 1978 | 33 | 124,296 | 830,891 | - | 264,497 | 124,296 | 1,095,388 | 1,219,684 | (390,911 | ) | 828,773 | 452,412 | ||||||||||||||
Grandeville at River | Oviedo, FL | 2002 | 280 | 6,000,000 | 23,114,693 | - | 1,302,075 | 6,000,000 | 24,416,767 | 30,416,767 | (5,049,745 | ) | 25,367,022 | 28,890,000 | ||||||||||||||
Greenhaven | Union City, | 1983 | 250 | 7,507,000 | 15,210,399 | - | 2,553,468 | 7,507,000 | 17,763,867 | 25,270,867 | (6,873,909 | ) | 18,396,958 | 10,975,000 | ||||||||||||||
Greenhouse - Frey | Kennesaw, | 1985 | 489 | 2,467,200 | 22,187,443 | - | 4,541,691 | 2,467,200 | 26,729,135 | 29,196,335 | (14,058,854 | ) | 15,137,480 | (I | ) | |||||||||||||
Greenhouse - Roswell | Roswell, GA | 1985 | 236 | 1,220,000 | 10,974,727 | - | 2,474,388 | 1,220,000 | 13,449,116 | 14,669,116 | (7,284,050 | ) | 7,385,065 | (I | ) | |||||||||||||
Greenwood Park | Centennial, | 1994 | 291 | 4,365,000 | 38,372,440 | - | 728,205 | 4,365,000 | 39,100,645 | 43,465,645 | (3,203,000 | ) | 40,262,646 | (O | ) | |||||||||||||
Greenwood Plaza | Centennial, | 1996 | 266 | 3,990,000 | 35,846,708 | - | 1,158,614 | 3,990,000 | 37,005,322 | 40,995,322 | (3,001,215 | ) | 37,994,107 | (O | ) | |||||||||||||
Hampshire Place | Los Angeles, | 1989 | 259 | 10,806,000 | 30,335,330 | - | 1,385,399 | 10,806,000 | 31,720,728 | 42,526,728 | (5,560,736 | ) | 36,965,993 | 17,325,409 | ||||||||||||||
Harbor Steps | Seattle, WA | 2000 | 730 | 59,900,000 | 158,829,432 | - | 3,461,814 | 59,900,000 | 162,291,246 | 222,191,246 | (22,241,915 | ) | 199,949,331 | 134,763,997 | ||||||||||||||
Heights on Capitol Hill | Seattle, WA | 2006 | 104 | 5,425,000 | 21,138,028 | - | 71,212 | 5,425,000 | 21,209,240 | 26,634,240 | (2,096,940 | ) | 24,537,299 | 19,320,000 | ||||||||||||||
Heritage at Stone Ridge | Burlington, | 2005 | 180 | 10,800,000 | 31,808,335 | - | 483,316 | 10,800,000 | 32,291,651 | 43,091,651 | (4,301,122 | ) | 38,790,529 | 28,692,174 | ||||||||||||||
Heritage Green | Sturbridge, | 1974 | 130 | 835,313 | 5,583,898 | - | 1,031,540 | 835,313 | 6,615,438 | 7,450,752 | (2,232,291 | ) | 5,218,461 | 1,066,575 | ||||||||||||||
Heronfield | Kirkland, WA | 1990 | 202 | 9,245,000 | 27,018,110 | - | 725,229 | 9,245,000 | 27,743,339 | 36,988,339 | (2,753,359 | ) | 34,234,980 | (N | ) | |||||||||||||
High Meadow | Ellington, CT | 1975 | 100 | 583,679 | 3,901,774 | - | 637,530 | 583,679 | 4,539,304 | 5,122,983 | (1,381,600 | ) | 3,741,383 | 3,852,318 | ||||||||||||||
Highland Point | Aurora, CO | 1984 | 319 | 1,631,900 | 14,684,439 | - | 2,057,315 | 1,631,900 | 16,741,754 | 18,373,654 | (7,463,596 | ) | 10,910,058 | (J | ) | |||||||||||||
Highlands at Cherry | Cherry Hills, | 2002 | 170 | 6,800,000 | 21,459,108 | - | 471,177 | 6,800,000 | 21,930,285 | 28,730,285 | (3,205,894 | ) | 25,524,392 | 16,001,272 | ||||||||||||||
Highlands at South | South | 2000 | 252 | 10,080,000 | 37,526,912 | - | 576,777 | 10,080,000 | 38,103,688 | 48,183,688 | (5,033,758 | ) | 43,149,930 | 21,552,742 | ||||||||||||||
Isle at Arrowhead | Glendale, AZ | 1996 | 256 | 1,650,237 | 19,593,123 | - | 1,347,078 | 1,650,237 | 20,940,201 | 22,590,438 | (8,244,538 | ) | 14,345,900 | (J | ) | |||||||||||||
Ivory Wood | Bothell, WA | 2000 | 144 | 2,732,800 | 13,888,282 | - | 442,613 | 2,732,800 | 14,330,895 | 17,063,695 | (2,723,630 | ) | 14,340,066 | 8,020,000 | ||||||||||||||
Jaclen Towers | Beverly, MA | 1976 | 100 | 437,072 | 2,921,735 | - | 935,595 | 437,072 | 3,857,330 | 4,294,402 | (1,455,086 | ) | 2,839,317 | 1,450,692 | ||||||||||||||
La Terrazza at Colma | Colma, CA | 2005 | 153 | - | 41,249,346 | - | 323,559 | - | 41,572,905 | 41,572,905 | (3,230,571 | ) | 38,342,334 | 25,940,000 | ||||||||||||||
LaSalle | Beaverton, | 1998 | 554 | 7,202,000 | 35,877,612 | - | 1,930,273 | 7,202,000 | 37,807,885 | 45,009,885 | (9,409,696 | ) | 35,600,188 | 30,482,125 | ||||||||||||||
Legacy at Highlands | Highlands | 1999 | 422 | 6,330,000 | 37,557,013 | - | 1,069,288 | 6,330,000 | 38,626,301 | 44,956,301 | (6,831,178 | ) | 38,125,123 | 21,641,428 | ||||||||||||||
Lenox at Patterson | Durham, NC | 1999 | 292 | 4,380,000 | 18,974,425 | - | 446,705 | 4,380,000 | 19,421,129 | 23,801,129 | (4,359,972 | ) | 19,441,158 | 13,004,529 | ||||||||||||||
Lincoln Heights | Quincy, MA | 1991 | 336 | 5,928,400 | 33,595,262 | - | 9,764,734 | 5,928,400 | 43,359,996 | 49,288,396 | (15,065,223 | ) | 34,223,173 | (O | ) | |||||||||||||
Longfellow Glen | Sudbury, MA | 1984 | 120 | 1,094,273 | 7,314,994 | - | 2,266,380 | 1,094,273 | 9,581,374 | 10,675,648 | (3,374,266 | ) | 7,301,381 | 2,935,624 | ||||||||||||||
Longview Place | Waltham, MA | 2004 | 348 | 20,880,000 | 90,255,509 | - | 430,131 | 20,880,000 | 90,685,639 | 111,565,639 | (11,891,022 | ) | 99,674,617 | 57,029,000 | ||||||||||||||
Longwood | Decatur, GA | 1992 | 268 | 1,454,048 | 13,087,393 | - | 1,639,126 | 1,454,048 | 14,726,519 | 16,180,567 | (7,680,589 | ) | 8,499,978 | (K | ) | |||||||||||||
Madison at River | Lawrenceville, | 1996 | 586 | 3,666,999 | 47,387,106 | - | 2,025,976 | 3,666,999 | 49,413,083 | 53,080,082 | (17,829,057 | ) | 35,251,025 | (L | ) | |||||||||||||
Market Street Village | San Diego, | 2006 | 229 | 13,740,000 | 40,757,084 | - | 296,103 | 13,740,000 | 41,053,187 | 54,793,187 | (3,821,843 | ) | 50,971,344 | (N | ) | |||||||||||||
Marks | Englewood, | 1987 | 616 | 4,928,500 | 44,622,314 | - | 5,080,912 | 4,928,500 | 49,703,226 | 54,631,726 | (20,837,546 | ) | 33,794,180 | 19,195,000 | ||||||||||||||
Merritt at Satellite | Duluth, GA | 1999 | 424 | 3,400,000 | 30,115,674 | - | 2,305,990 | 3,400,000 | 32,421,665 | 35,821,665 | (10,461,672 | ) | 25,359,993 | (K | ) | |||||||||||||
Metro on First | Seattle, WA | 2002 | 102 | 8,540,000 | 12,209,981 | - | 176,601 | 8,540,000 | 12,386,582 | 20,926,582 | (1,815,108 | ) | 19,111,474 | 16,650,000 | ||||||||||||||
Mill Pond | Millersville, | 1984 | 240 | 2,880,000 | 8,468,014 | - | 2,196,463 | 2,880,000 | 10,664,477 | 13,544,477 | (4,413,551 | ) | 9,130,927 | 7,300,000 | ||||||||||||||
Millbrook Apartments | Alexandria, | 1996 | 406 | 24,360,000 | 86,178,714 | - | 2,077,505 | 24,360,000 | 88,256,219 | 112,616,219 | (11,557,379 | ) | 101,058,840 | 64,680,000 | ||||||||||||||
Missions at Sunbow | Chula Vista, | 2003 | 336 | 28,560,000 | 59,287,595 | - | 903,705 | 28,560,000 | 60,191,300 | 88,751,300 | (9,205,716 | ) | 79,545,584 | 55,091,000 | ||||||||||||||
Monte Viejo | Phoneix, AZ | 2004 | 480 | 12,700,000 | 45,926,784 | - | 679,442 | 12,700,000 | 46,606,226 | 59,306,226 | (5,975,021 | ) | 53,331,205 | 40,855,115 | ||||||||||||||
Montecito | Valencia, CA | 1999 | 210 | 8,400,000 | 24,709,146 | - | 1,460,326 | 8,400,000 | 26,169,471 | 34,569,471 | (7,519,933 | ) | 27,049,539 | (N | ) | |||||||||||||
Montierra | Scottsdale, AZ | 1999 | 249 | 3,455,000 | 17,266,787 | - | 1,155,570 | 3,455,000 | 18,422,357 | 21,877,357 | (6,425,645 | ) | 15,451,712 | (J | ) | |||||||||||||
Montierra (CA) | San Diego, | 1990 | 272 | 8,160,000 | 29,360,938 | - | 5,987,491 | 8,160,000 | 35,348,429 | 43,508,429 | (10,833,892 | ) | 32,674,538 | (N | ) | |||||||||||||
Mosaic at Metro | Hyattsville, | (F) | - | - | 53,329,225 | - | 4,955 | - | 53,334,180 | 53,334,180 | (19 | ) | 53,334,161 | 38,424,735 | ||||||||||||||
Mountain Park Ranch | Phoenix, AZ | 1994 | 240 | 1,662,332 | 18,260,276 | - | 1,516,659 | 1,662,332 | 19,776,935 | 21,439,267 | (7,950,908 | ) | 13,488,359 | (M | ) | |||||||||||||
Nehoiden Glen | Needham, MA | 1978 | 61 | 634,538 | 4,241,755 | - | 746,816 | 634,538 | 4,988,571 | 5,623,109 | (1,541,213 | ) | 4,081,896 | 40,962 | ||||||||||||||
Noonan Glen | Winchester, | 1983 | 18 | 151,344 | 1,011,700 | - | 372,839 | 151,344 | 1,384,539 | 1,535,883 | (464,396 | ) | 1,071,487 | 252,792 | ||||||||||||||
North Pier at | Jersey City, | 2003 | 297 | 4,000,159 | 94,348,092 | - | 864,798 | 4,000,159 | 95,212,889 | 99,213,048 | (15,724,051 | ) | 83,488,998 | 76,862,000 | ||||||||||||||
Northampton 1 | Largo, MD | 1977 | 344 | 1,843,200 | 17,528,381 | - | 5,176,972 | 1,843,200 | 22,705,353 | 24,548,553 | (12,342,531 | ) | 12,206,022 | 17,790,084 | ||||||||||||||
Northglen | Valencia, CA | 1988 | 234 | 9,360,000 | 20,778,553 | - | 1,470,232 | 9,360,000 | 22,248,785 | 31,608,785 | (6,532,694 | ) | 25,076,090 | 13,406,659 | ||||||||||||||
Norton Glen | Norton, MA | 1983 | 150 | 1,012,556 | 6,768,727 | - | 3,441,554 | 1,012,556 | 10,210,281 | 11,222,836 | (3,467,457 | ) | 7,755,379 | 2,655,183 | ||||||||||||||
Oak Mill I | Germantown, | 1984 | 208 | 10,000,000 | 13,155,522 | - | 6,931,485 | 10,000,000 | 20,087,006 | 30,087,006 | (3,499,696 | ) | 26,587,310 | 13,282,265 | ||||||||||||||
Oak Mill II | Germantown, | 1985 | 192 | 854,133 | 10,233,947 | - | 5,075,011 | 854,133 | 15,308,959 | 16,163,091 | (6,602,634 | ) | 9,560,458 | 9,600,000 | ||||||||||||||
Oak Park North | Agoura Hills, | 1990 | 220 | 1,706,900 | 15,362,666 | - | 2,079,058 | 1,706,900 | 17,441,724 | 19,148,624 | (8,088,992 | ) | 11,059,632 | (I | ) | |||||||||||||
Oak Park South | Agoura Hills, | 1989 | 224 | 1,683,800 | 15,154,608 | - | 2,181,159 | 1,683,800 | 17,335,767 | 19,019,567 | (8,087,692 | ) | 10,931,875 | (I | ) | |||||||||||||
Oaks | Santa Clarita, | 2000 | 520 | 23,400,000 | 61,020,438 | - | 2,149,121 | 23,400,000 | 63,169,558 | 86,569,558 | (13,374,454 | ) | 73,195,104 | 42,757,744 | ||||||||||||||
Old Mill Glen | Maynard, MA | 1983 | 50 | 396,756 | 2,652,233 | - | 498,354 | 396,756 | 3,150,587 | 3,547,343 | (1,014,022 | ) | 2,533,321 | 1,154,000 | ||||||||||||||
Olde Redmond Place | Redmond, | 1986 | 192 | 4,807,100 | 14,126,038 | - | 3,723,190 | 4,807,100 | 17,849,228 | 22,656,328 | (6,869,411 | ) | 15,786,917 | (O | ) | |||||||||||||
Parc East Towers | New York, | 1977 | 324 | 102,163,000 | 109,013,628 | - | 4,184,672 | 102,163,000 | 113,198,300 | 215,361,300 | (8,902,329 | ) | 206,458,972 | 18,195,256 | ||||||||||||||
Park Meadow | Gilbert, AZ | 1986 | 225 | 835,217 | 15,120,769 | - | 2,063,910 | 835,217 | 17,184,678 | 18,019,895 | (6,981,098 | ) | 11,038,797 | (O | ) | |||||||||||||
Parkfield | Denver, CO | 2000 | 476 | 8,330,000 | 28,667,618 | - | 1,702,048 | 8,330,000 | 30,369,665 | 38,699,665 | (8,887,331 | ) | 29,812,334 | 23,275,000 | ||||||||||||||
S-9
Schedule III -— Real Estate and Accumulated Depreciation
December 31, 20082010 Cost Capitalized Subsequent to Gross Amount Carried Initial Cost to Acquisition at Close of Description Company (Improvements, net) (E) Period 12/31/10 Date of Building & Building & Building & Accumulated Investment in Real Apartment Name Location Construction Units (H) Land Fixtures Land Fixtures Land Fixtures (A) Total (B) Depreciation (C) Estate, Net at 12/31/10 (B) Encumbrances Lincoln Heights Quincy, MA 1991 336 5,928,400 33,595,262 — 10,549,292 5,928,400 44,144,554 50,072,954 (19,375,802 ) 30,697,152 (L ) Longview Place Waltham, MA 2004 348 20,880,000 90,255,509 — 1,460,656 20,880,000 91,716,165 112,596,165 (18,368,568 ) 94,227,597 57,029,000 Market Street Village San Diego, CA 2006 229 13,740,000 40,757,300 — 345,628 13,740,000 41,102,928 54,842,928 (7,630,442 ) 47,212,486 (K ) Marks Englewood, CO (G) 1987 616 4,928,500 44,622,314 — 8,060,048 4,928,500 52,682,362 57,610,862 (24,944,534 ) 32,666,328 19,195,000 Metro on First Seattle, WA (G) 2002 102 8,540,000 12,209,981 — 254,915 8,540,000 12,464,896 21,004,896 (2,757,191 ) 18,247,705 16,650,000 Mill Creek Milpitas, CA 1991 516 12,858,693 57,168,503 — 2,403,984 12,858,693 59,572,487 72,431,180 (17,116,835 ) 55,314,345 69,312,259 Miramar Lakes Miramar, FL 2003 344 17,200,000 51,487,235 — 1,343,639 17,200,000 52,830,874 70,030,874 (11,391,642 ) 58,639,232 (M ) Missions at Sunbow Chula Vista, CA 2003 336 28,560,000 59,287,595 — 1,148,849 28,560,000 60,436,444 88,996,444 (14,871,085 ) 74,125,359 55,091,000 Monte Viejo Phoneix, AZ 2004 480 12,700,000 45,926,784 — 976,950 12,700,000 46,903,734 59,603,734 (11,299,701 ) 48,304,033 40,960,036 Montecito Valencia, CA 1999 210 8,400,000 24,709,146 — 1,732,020 8,400,000 26,441,166 34,841,166 (9,562,693 ) 25,278,473 (K ) Montierra Scottsdale, AZ 1999 249 3,455,000 17,266,787 — 1,458,706 3,455,000 18,725,493 22,180,493 (7,870,337 ) 14,310,156 17,858,854 Montierra (CA) San Diego, CA 1990 272 8,160,000 29,360,938 — 6,457,847 8,160,000 35,818,785 43,978,785 (13,974,022 ) 30,004,763 (K ) Mosaic at Metro Hyattsville, MD 2008 260 — 59,653,038 — 49,368 — 59,702,406 59,702,406 (4,118,730 ) 55,583,676 45,046,469 Mountain Park Ranch Phoenix, AZ 1994 240 1,662,332 18,260,276 — 1,748,558 1,662,332 20,008,834 21,671,166 (9,432,301 ) 12,238,865 (J ) Mountain Terrace Stevenson Ranch, CA 1992 510 3,966,500 35,814,995 — 11,502,806 3,966,500 47,317,801 51,284,301 (21,425,003 ) 29,859,298 57,428,472 Northpark Burlingame, CA 1972 510 38,607,000 77,493,000 — 39,582 38,607,000 77,532,582 116,139,582 (3,084,091 ) 113,055,491 70,668,409 North Pier at Harborside Jersey City, NJ (J) 2003 297 4,000,159 94,348,092 — 1,739,535 4,000,159 96,087,627 100,087,786 (22,321,947 ) 77,765,839 76,862,000 Oak Mill I Germantown, MD 1984 208 10,000,000 13,155,522 — 7,235,088 10,000,000 20,390,610 30,390,610 (6,289,524 ) 24,101,086 12,487,301 Oak Mill II Germantown, MD 1985 192 854,133 10,233,947 — 5,864,959 854,133 16,098,906 16,953,039 (8,498,045 ) 8,454,994 9,600,000 Oaks Santa Clarita, CA 2000 520 23,400,000 61,020,438 — 2,652,544 23,400,000 63,672,982 87,072,982 (17,959,221 ) 69,113,761 41,154,036 Olde Redmond Place Redmond, WA 1986 192 4,807,100 14,126,038 — 4,122,122 4,807,100 18,248,160 23,055,260 (8,527,802 ) 14,527,458 (L ) Parc East Towers New York, NY (G) 1977 324 102,163,000 109,013,628 — 5,654,774 102,163,000 114,668,402 216,831,402 (18,284,019 ) 198,547,383 17,473,846 Park Meadow Gilbert, AZ 1986 225 835,217 15,120,769 — 2,267,564 835,217 17,388,333 18,223,550 (8,395,148 ) 9,828,402 (L ) Parkfield Denver, CO 2000 476 8,330,000 28,667,618 — 2,155,451 8,330,000 30,823,069 39,153,069 (11,251,895 ) 27,901,174 23,275,000 Promenade at Peachtree Chamblee, GA 2001 406 10,150,000 31,219,739 — 1,645,577 10,150,000 32,865,316 43,015,316 (8,729,820 ) 34,285,496 (K ) Promenade at Town Center II Valencia, CA 2001 270 13,500,000 34,405,636 — 391,668 13,500,000 34,797,304 48,297,304 (9,307,693 ) 38,989,611 32,785,701 Providence Bothell, WA 2000 200 3,573,621 19,055,505 — 541,320 3,573,621 19,596,825 23,170,446 (5,354,911 ) 17,815,535 (J ) Reserve at Clarendon Centre, The Arlington, VA (G) 2003 252 10,500,000 52,812,935 — 1,777,312 10,500,000 54,590,247 65,090,247 (14,249,748 ) 50,840,499 (K ) Reserve at Eisenhower, The Alexandria, VA 2002 226 6,500,000 34,585,060 — 702,144 6,500,000 35,287,204 41,787,204 (10,058,015 ) 31,729,189 (K ) Reserve at Empire Lakes Rancho Cucamonga, CA 2005 467 16,345,000 73,080,670 — 1,396,394 16,345,000 74,477,064 90,822,064 (15,486,334 ) 75,335,730 (J ) Reserve at Fairfax Corners Fairfax, VA 2001 652 15,804,057 63,129,051 — 2,563,175 15,804,057 65,692,226 81,496,283 (19,948,034 ) 61,548,249 84,778,876 Reserve at Potomac Yard Alexandria, VA 2002 588 11,918,917 68,976,484 — 3,376,272 11,918,917 72,352,756 84,271,673 (17,772,440 ) 66,499,233 66,470,000 Reserve at Town Center (WA) Mill Creek, WA 2001 389 10,369,400 41,172,081 — 1,414,773 10,369,400 42,586,854 52,956,254 (10,871,457 ) 42,084,797 29,160,000 Rianna II Seattle, WA (G) 2002 78 2,161,840 14,433,614 — 16,614 2,161,840 14,450,228 16,612,068 (1,072,947 ) 15,539,121 10,499,494 Rockingham Glen West Roxbury, MA 1974 143 1,124,217 7,515,160 — 1,533,725 1,124,217 9,048,885 10,173,102 (3,757,339 ) 6,415,763 1,440,865 Rolling Green (Amherst) Amherst, MA 1970 204 1,340,702 8,962,317 — 3,313,332 1,340,702 12,275,649 13,616,351 (5,297,121 ) 8,319,230 2,217,176 Rolling Green (Milford) Milford, MA 1970 304 2,012,350 13,452,150 — 3,986,562 2,012,350 17,438,712 19,451,062 (7,305,093 ) 12,145,969 4,645,763 San Marcos Apartments Scottsdale, AZ 1995 320 20,000,000 31,261,609 — 1,384,451 20,000,000 32,646,060 52,646,060 (7,272,584 ) 45,373,476 32,900,000 Savannah Lakes Boynton Beach, FL 1991 466 7,000,000 30,263,310 — 4,429,051 7,000,000 34,692,361 41,692,361 (11,606,796 ) 30,085,565 36,610,000 Savannah Midtown Atlanta, GA 2000 322 7,209,873 29,433,507 — 2,603,453 7,209,873 32,036,960 39,246,833 (8,514,514 ) 30,732,319 17,800,000 Savoy I Aurora, CO 2001 444 5,450,295 38,765,670 — 1,964,604 5,450,295 40,730,274 46,180,569 (11,009,808 ) 35,170,761 (L ) Sheffield Court Arlington, VA 1986 597 3,342,381 31,337,332 — 7,927,865 3,342,381 39,265,197 42,607,578 (21,583,314 ) 21,024,264 (L ) Sonata at Cherry Creek Denver, CO 1999 183 5,490,000 18,130,479 — 1,162,983 5,490,000 19,293,462 24,783,462 (6,957,885 ) 17,825,577 19,190,000 Sonterra at Foothill Ranch Foothill Ranch, CA 1997 300 7,503,400 24,048,507 — 1,500,506 7,503,400 25,549,013 33,052,413 (11,490,634 ) 21,561,779 (L ) South Winds Fall River, MA 1971 404 2,481,821 16,780,359 — 3,712,343 2,481,821 20,492,702 22,974,523 (8,697,220 ) 14,277,303 4,437,567 Springs Colony Altamonte Springs, FL 1986 188 630,411 5,852,157 — 2,363,300 630,411 8,215,457 8,845,868 (5,129,095 ) 3,716,773 (I ) Stonegate (CO) Broomfield, CO 2003 350 8,750,000 32,998,775 — 2,700,719 8,750,000 35,699,494 44,449,494 (8,900,049 ) 35,549,445 (J ) Stoneleigh at Deerfield Alpharetta, GA 2003 370 4,810,000 29,999,596 — 871,524 4,810,000 30,871,120 35,681,120 (7,656,545 ) 28,024,575 16,800,000 Stoney Ridge Dale City, VA 1985 264 8,000,000 24,147,091 — 5,287,141 8,000,000 29,434,232 37,434,232 (7,934,618 ) 29,499,614 15,138,399 Stonybrook Boynton Beach, FL 2001 264 10,500,000 24,967,638 — 951,679 10,500,000 25,919,317 36,419,317 (6,210,078 ) 30,209,239 20,971,587 Summerhill Glen Maynard, MA 1980 120 415,812 3,000,816 — 766,088 415,812 3,766,904 4,182,716 (1,622,076 ) 2,560,640 1,174,207 Summerset Village Chatsworth, CA 1985 280 2,890,450 23,670,889 — 3,797,264 2,890,450 27,468,153 30,358,603 (13,674,820 ) 16,683,783 38,039,912 Sunforest Davie, FL 1989 494 10,000,000 32,124,850 — 4,030,481 10,000,000 36,155,331 46,155,331 (11,194,003 ) 34,961,328 (L ) Sunforest II Davie, FL (F) — — 337,751 — — — 337,751 337,751 — 337,751 (L ) Talleyrand Tarrytown, NY (I) 1997-1998 300 12,000,000 49,838,160 — 3,696,522 12,000,000 53,534,682 65,534,682 (17,861,336 ) 47,673,346 35,000,000 Tanglewood (VA) Manassas, VA 1987 432 2,108,295 24,619,495 — 8,462,243 2,108,295 33,081,738 35,190,033 (18,128,350 ) 17,061,683 25,110,000 Teresina Chula Vista, CA 2000 440 28,600,000 61,916,670 — 1,767,940 28,600,000 63,684,610 92,284,610 (13,155,998 ) 79,128,612 44,095,588 Touriel Building Berkeley, CA (G) 2004 35 2,736,000 7,810,027 — 33,587 2,736,000 7,843,614 10,579,614 (1,392,156 ) 9,187,458 5,050,000 Town Square at Mark Center I (fka Millbrook I) Alexandria, VA 1996 406 24,360,000 86,178,714 — 2,422,299 24,360,000 88,601,013 112,961,013 (19,521,198 ) 93,439,815 64,680,000 Town Square at Mark Center Phase II Alexandria, VA 2001 272 15,568,464 55,031,536 — 34,830 15,568,464 55,066,366 70,634,830 (1,956,133 ) 68,678,697 47,669,865 Tradition at Alafaya Oviedo, FL 2006 253 7,590,000 31,881,505 — 238,496 7,590,000 32,120,001 39,710,001 (7,731,307 ) 31,978,694 (K ) Tuscany at Lindbergh Atlanta, GA 2001 324 9,720,000 40,874,023 — 1,753,394 9,720,000 42,627,417 52,347,417 (11,365,288 ) 40,982,129 32,360,000 Uptown Square Denver, CO (G) 1999/2001 696 17,492,000 100,696,541 — 2,232,071 17,492,000 102,928,612 120,420,612 (24,014,273 ) 96,406,339 88,550,000 Versailles Woodland Hills, CA 1991 253 12,650,000 33,656,292 — 3,630,019 12,650,000 37,286,311 49,936,311 (11,205,924 ) 38,730,387 30,372,953 Via Ventura Scottsdale, AZ 1980 328 1,351,785 13,382,006 — 7,962,802 1,351,785 21,344,808 22,696,593 (14,368,306 ) 8,328,287 (K ) Village at Lakewood Phoenix, AZ 1988 240 3,166,411 13,859,090 — 2,013,344 3,166,411 15,872,434 19,038,845 (7,739,644 ) 11,299,201 (L ) Vintage Ontario, CA 2005-2007 300 7,059,230 47,677,762 — 176,250 7,059,230 47,854,012 54,913,242 (8,609,805 ) 46,303,437 33,000,000 Warwick Station Westminster, CO 1986 332 2,274,121 21,113,974 — 3,015,763 2,274,121 24,129,737 26,403,858 (11,495,261 ) 14,908,597 8,355,000 Wellington Hill Manchester, NH 1987 390 1,890,200 17,120,662 — 7,628,748 1,890,200 24,749,410 26,639,610 (15,003,057 ) 11,636,553 (I ) Westgate Pasadena Apartments Pasadena, CA 2010 480 22,898,848 131,986,739 — (263 ) 22,898,848 131,986,476 154,885,324 (185 ) 154,885,139 135,000,000 Westwood Glen Westwood, MA 1972 156 1,616,505 10,806,004 — 1,495,929 1,616,505 12,301,933 13,918,438 (4,379,593 ) 9,538,845 392,294 Whisper Creek Denver, CO 2002 272 5,310,000 22,998,558 — 843,388 5,310,000 23,841,946 29,151,946 (6,016,094 ) 23,135,852 13,580,000 Wilkins Glen Medfield, MA 1975 103 538,483 3,629,943 — 1,484,323 538,483 5,114,266 5,652,749 (2,071,249 ) 3,581,500 1,011,750 Windridge (CA) Laguna Niguel, CA 1989 344 2,662,900 23,985,497 — 5,111,877 2,662,900 29,097,374 31,760,274 (16,423,796 ) 15,336,478 (I )
| Description | Initial Cost to Company | Cost Capitalized Subsequent to Acquisition (Improvements, net) (E) | Gross Amount Carried at Close of Period 12/31/08 | |||||||||||||||||||||||||
Apartment | Location | Date of Construction | Units (H) | Land | Building & Fixtures | Land | Building & Fixtures | Land | Building & Fixtures (A) | Total (B) | Accumulated Depreciation (C) | Investment in Real Estate, Net at 12/31/08 | Encumbrances | |||||||||||||||
Portofino (Val) | Valencia, | 1989 | 216 | 8,640,000 | 21,487,126 | - | 2,045,330 | 8,640,000 | 23,532,456 | 32,172,456 | (6,820,399 | ) | 25,352,057 | 13,023,712 | ||||||||||||||
Prairie Creek I & II | Richardson, | 1998- 1999 | 464 | 4,067,292 | 38,986,022 | - | 2,180,726 | 4,067,292 | 41,166,749 | 45,234,041 | (14,417,796 | ) | 30,816,245 | (J | ) | |||||||||||||
Preston Bend | Dallas, TX | 1986 | 255 | 1,075,200 | 9,532,056 | - | 2,071,217 | 1,075,200 | 11,603,273 | 12,678,473 | (5,114,507 | ) | 7,563,965 | (I | ) | |||||||||||||
Promenade at Peachtree | Chamblee, | 2001 | 406 | 10,150,000 | 31,219,739 | - | 1,395,542 | 10,150,000 | 32,615,282 | 42,765,282 | (6,199,984 | ) | 36,565,298 | (N | ) | |||||||||||||
Promenade at Town | Valencia, | 2001 | 270 | 13,500,000 | 34,405,636 | - | 1,324,718 | 13,500,000 | 35,730,354 | 49,230,354 | (7,004,901 | ) | 42,225,453 | 34,158,307 | ||||||||||||||
Promenade Terrace | Corona, CA | 1990 | 330 | 2,272,800 | 20,546,289 | - | 4,037,899 | 2,272,800 | 24,584,188 | 26,856,988 | (11,344,582 | ) | 15,512,406 | 16,228,027 | ||||||||||||||
Providence | Bothell, WA | 2000 | 200 | 3,573,621 | 19,055,505 | - | 464,180 | 3,573,621 | 19,519,686 | 23,093,307 | (3,977,751 | ) | 19,115,556 | (M | ) | |||||||||||||
Reserve at Ashley Lake | Boynton | 1990 | 440 | 3,520,400 | 23,332,494 | - | 4,048,999 | 3,520,400 | 27,381,492 | 30,901,892 | (11,040,984 | ) | 19,860,908 | 24,150,000 | ||||||||||||||
Reserve at Clarendon | Arlington, | 2003 | 252 | 10,500,000 | 52,812,935 | - | 1,394,476 | 10,500,000 | 54,207,411 | 64,707,411 | (10,393,438 | ) | 54,313,973 | (N | ) | |||||||||||||
Reserve at Eisenhower, | Alexandria, | 2002 | 226 | 6,500,000 | 34,585,060 | - | 489,635 | 6,500,000 | 35,074,695 | 41,574,695 | (7,600,416 | ) | 33,974,278 | (N | ) | |||||||||||||
Reserve at Empire Lakes | Rancho | 2005 | 467 | 16,345,000 | 73,080,670 | - | 712,794 | 16,345,000 | 73,793,464 | 90,138,464 | (9,990,443 | ) | 80,148,022 | (M | ) | |||||||||||||
Reserve at Fairfax | Fairfax, VA | 2001 | 652 | 15,804,057 | 63,129,051 | - | 2,001,242 | 15,804,057 | 65,130,293 | 80,934,350 | (15,238,664 | ) | 65,695,686 | (L | ) | |||||||||||||
Reserve at Moreno Valley | Moreno | 2005 | 176 | 8,800,000 | 26,151,298 | - | 313,644 | 8,800,000 | 26,464,942 | 35,264,942 | (3,150,420 | ) | 32,114,523 | (O | ) | |||||||||||||
Reserve at Potomac Yard | Alexandria, | 2002 | 588 | 11,918,917 | 68,976,484 | - | 1,604,768 | 11,918,917 | 70,581,252 | 82,500,169 | (12,701,707 | ) | 69,798,462 | 66,470,000 | ||||||||||||||
Reserve at Town Center | Mill Creek, | 2001 | 389 | 10,369,400 | 41,172,081 | - | 989,579 | 10,369,400 | 42,161,661 | 52,531,061 | (7,732,175 | ) | 44,798,886 | 29,160,000 | ||||||||||||||
Retreat, The | Phoenix, AZ | 1999 | 480 | 3,475,114 | 27,265,252 | - | 1,856,226 | 3,475,114 | 29,121,478 | 32,596,592 | (10,037,761 | ) | 22,558,831 | (K | ) | |||||||||||||
River Pointe at Den Rock | Lawrence, | 2000 | 174 | 4,615,702 | 18,440,147 | - | 919,721 | 4,615,702 | 19,359,868 | 23,975,570 | (4,612,178 | ) | 19,363,392 | 18,100,000 | ||||||||||||||
Rockingham Glen | West | 1974 | 143 | 1,124,217 | 7,515,160 | - | 1,257,070 | 1,124,217 | 8,772,230 | 9,896,447 | (2,910,340 | ) | 6,986,107 | 1,729,745 | ||||||||||||||
Rolling Green (Amherst) | Amherst, | 1970 | 204 | 1,340,702 | 8,962,317 | - | 2,814,267 | 1,340,702 | 11,776,585 | 13,117,286 | (4,101,096 | ) | 9,016,190 | 2,726,415 | ||||||||||||||
Rolling Green (Milford) | Milford, MA | 1970 | 304 | 2,012,350 | 13,452,150 | - | 3,030,631 | 2,012,350 | 16,482,781 | 18,495,131 | (5,730,853 | ) | 12,764,278 | 5,583,658 | ||||||||||||||
San Marcos Apartments | Scottsdale, | 1995 | 320 | 20,000,000 | 31,261,609 | - | 690,179 | 20,000,000 | 31,951,789 | 51,951,789 | (4,098,674 | ) | 47,853,115 | 32,900,000 | ||||||||||||||
Savannah Lakes | Boynton | 1991 | 466 | 7,000,000 | 30,422,607 | - | 2,574,674 | 7,000,000 | 32,997,281 | 39,997,281 | (8,885,720 | ) | 31,111,561 | 36,610,000 | ||||||||||||||
Savannah Midtown | Atlanta, GA | 2000 | 322 | 7,209,873 | 29,433,507 | - | 2,157,986 | 7,209,873 | 31,591,494 | 38,801,367 | (6,019,634 | ) | 32,781,733 | 17,800,000 | ||||||||||||||
Savoy I | Aurora, CO | 2001 | 444 | 5,450,295 | 38,765,670 | - | 1,489,075 | 5,450,295 | 40,254,746 | 45,705,041 | (7,949,958 | ) | 37,755,083 | (O | ) | |||||||||||||
Scarborough Square | Rockville, | 1967 | 121 | 1,815,000 | 7,608,126 | - | 2,133,815 | 1,815,000 | 9,741,940 | 11,556,940 | (3,967,334 | ) | 7,589,606 | 4,469,216 | ||||||||||||||
Sheffield Court | Arlington, | 1986 | 597 | 3,342,381 | 31,337,332 | - | 6,398,333 | 3,342,381 | 37,735,665 | 41,078,046 | (18,285,259 | ) | 22,792,787 | (O | ) | |||||||||||||
Siena Terrace | Lake Forest, | 1988 | 356 | 8,900,000 | 24,083,024 | - | 2,272,417 | 8,900,000 | 26,355,441 | 35,255,441 | (9,545,546 | ) | 25,709,895 | 16,084,838 | ||||||||||||||
Skycrest | Valencia, | 1999 | 264 | 10,560,000 | 25,574,457 | - | 1,526,460 | 10,560,000 | 27,100,917 | 37,660,917 | (7,898,964 | ) | 29,761,954 | 16,224,620 | ||||||||||||||
Skyline Towers | Falls | 1971 | 939 | 78,278,200 | 91,485,591 | - | 24,992,150 | 78,278,200 | 116,477,741 | 194,755,941 | (17,585,702 | ) | 177,170,239 | 90,210,478 | ||||||||||||||
Skyview | Rancho | 1999 | 260 | 3,380,000 | 21,952,863 | - | 1,316,319 | 3,380,000 | 23,269,182 | 26,649,182 | (7,822,780 | ) | 18,826,402 | (K | ) | |||||||||||||
Sonata at Cherry Creek | Denver, CO | 1999 | 183 | 5,490,000 | 18,130,479 | - | 915,045 | 5,490,000 | 19,045,524 | 24,535,524 | (5,511,085 | ) | 19,024,439 | 19,190,000 | ||||||||||||||
Sonterra at Foothill | Foothill | 1997 | 300 | 7,503,400 | 24,048,507 | - | 1,263,634 | 7,503,400 | 25,312,141 | 32,815,541 | (9,665,998 | ) | 23,149,544 | (O | ) | |||||||||||||
South Winds | Fall River, | 1971 | 404 | 2,481,821 | 16,780,359 | - | 3,032,954 | 2,481,821 | 19,813,313 | 22,295,134 | (6,856,334 | ) | 15,438,800 | 5,437,507 | ||||||||||||||
Springs Colony | Altamonte | 1986 | 188 | 630,411 | 5,852,157 | - | 2,129,296 | 630,411 | 7,981,453 | 8,611,864 | (4,429,561 | ) | 4,182,303 | (I | ) | |||||||||||||
Stonegate (CO) | Broomfield, | 2003 | 350 | 8,750,000 | 32,998,775 | - | 2,121,287 | 8,750,000 | 35,120,062 | 43,870,062 | (5,593,937 | ) | 38,276,124 | (M | ) | |||||||||||||
Stoneleigh at Deerfield | Alpharetta, | 2003 | 370 | 4,810,000 | 29,999,596 | - | 518,100 | 4,810,000 | 30,517,695 | 35,327,695 | (5,325,715 | ) | 30,001,980 | 16,800,000 | ||||||||||||||
Stoney Ridge | Dale City, | 1985 | 264 | 8,000,000 | 24,147,091 | - | 5,045,818 | 8,000,000 | 29,192,909 | 37,192,909 | (4,617,964 | ) | 32,574,945 | 15,854,019 | ||||||||||||||
Stonybrook | Boynton | 2001 | 264 | 10,500,000 | 24,967,638 | - | 760,645 | 10,500,000 | 25,728,283 | 36,228,283 | (4,123,771 | ) | 32,104,512 | 22,092,813 | ||||||||||||||
Summerhill Glen | Maynard, | 1980 | 120 | 415,812 | 3,000,816 | - | 674,965 | 415,812 | 3,675,781 | 4,091,593 | (1,285,685 | ) | 2,805,908 | 1,409,625 | ||||||||||||||
Summerset Village | Chatsworth, | 1985 | 280 | 2,629,804 | 23,670,889 | - | 3,054,891 | 2,629,804 | 26,725,781 | 29,355,585 | (11,404,108 | ) | 17,951,477 | (J | ) | |||||||||||||
Sunforest | Davie, FL | 1989 | 494 | 10,000,000 | 32,124,850 | - | 2,880,576 | 10,000,000 | 35,005,426 | 45,005,426 | (8,145,664 | ) | 36,859,762 | (O | ) | |||||||||||||
Talleyrand | Tarrytown, | 1997- 1998 | 300 | 12,000,000 | 49,838,160 | - | 3,496,456 | 12,000,000 | 53,334,616 | 65,334,616 | (13,820,073 | ) | 51,514,543 | 35,000,000 | ||||||||||||||
Tanasbourne Terrace | Hillsboro, | 1986- 1989 | 373 | 1,876,700 | 16,891,205 | - | 3,519,551 | 1,876,700 | 20,410,756 | 22,287,456 | (10,845,256 | ) | 11,442,200 | (J | ) | |||||||||||||
Tanglewood (RI) | West | 1973 | 176 | 1,141,415 | 7,630,129 | - | 1,077,803 | 1,141,415 | 8,707,932 | 9,849,347 | (2,663,070 | ) | 7,186,277 | 5,902,175 | ||||||||||||||
Tanglewood (VA) | Manassas, | 1987 | 432 | 2,108,295 | 24,619,495 | - | 7,910,091 | 2,108,295 | 32,529,586 | 34,637,881 | (14,781,448 | ) | 19,856,433 | 25,110,000 | ||||||||||||||
Teresina | Chula Vista, | 2000 | 440 | 28,600,000 | 61,916,670 | - | 1,295,495 | 28,600,000 | 63,212,165 | 91,812,165 | (6,755,051 | ) | 85,057,115 | 45,325,406 | ||||||||||||||
Touriel Building | Berkeley, | 2004 | 35 | 2,736,000 | 7,810,027 | - | 14,530 | 2,736,000 | 7,824,557 | 10,560,557 | (721,689 | ) | 9,838,867 | 5,050,000 | ||||||||||||||
Tradition at Alafaya | Oviedo, FL | 2006 | 253 | 7,590,000 | 32,014,299 | - | 202,785 | 7,590,000 | 32,217,084 | 39,807,084 | (4,474,042 | ) | 35,333,042 | (N | ) | |||||||||||||
Turf Club | Littleton, | 1986 | 324 | 2,107,300 | 15,478,040 | - | 2,663,270 | 2,107,300 | 18,141,310 | 20,248,610 | (7,801,953 | ) | 12,446,657 | (K | ) | |||||||||||||
Tuscany at Lindbergh | Atlanta, GA | 2001 | 324 | 9,720,000 | 40,874,023 | - | 1,416,320 | 9,720,000 | 42,290,343 | 52,010,343 | (6,877,629 | ) | 45,132,714 | 32,360,000 | ||||||||||||||
Uptown Square | Denver, CO | 1999/2001 | 696 | 17,492,000 | 100,705,311 | - | 1,631,393 | 17,492,000 | 102,336,704 | 119,828,704 | (13,832,427 | ) | 105,996,277 | 88,550,000 | ||||||||||||||
Uwajimaya Village | Seattle, WA | 2002 | 176 | 8,800,000 | 22,188,288 | - | 82,852 | 8,800,000 | 22,271,140 | 31,071,140 | (3,587,548 | ) | 27,483,591 | 16,484,934 | ||||||||||||||
Via Ventura | Scottsdale, | 1980 | 328 | 1,351,785 | 13,382,006 | - | 7,670,117 | 1,351,785 | 21,052,122 | 22,403,908 | (12,953,168 | ) | 9,450,740 | (N | ) | |||||||||||||
Villa Encanto | Phoenix, AZ | 1983 | 385 | 2,884,447 | 22,197,363 | - | 3,141,107 | 2,884,447 | 25,338,470 | 28,222,917 | (10,680,949 | ) | 17,541,967 | (K | ) | |||||||||||||
Village at Lakewood | Phoenix, AZ | 1988 | 240 | 3,166,411 | 13,859,090 | - | 1,761,379 | 3,166,411 | 15,620,469 | 18,786,880 | (6,548,296 | ) | 12,238,584 | (O | ) | |||||||||||||
Vista Del Lago (TX) | Dallas, TX | 1992 | 296 | 3,552,000 | 20,066,912 | - | 1,553,019 | 3,552,000 | 21,619,931 | 25,171,931 | (6,426,287 | ) | 18,745,644 | (J | ) | |||||||||||||
Warwick Station | Westminster, | 1986 | 332 | 2,274,121 | 21,113,974 | - | 2,620,710 | 2,274,121 | 23,734,684 | 26,008,805 | (9,555,151 | ) | 16,453,653 | 8,355,000 | ||||||||||||||
Waterford Place (CO) | Thornton, | 1998 | 336 | 5,040,000 | 29,733,022 | - | 1,033,715 | 5,040,000 | 30,766,737 | 35,806,737 | (5,984,761 | ) | 29,821,976 | (K | ) | |||||||||||||
Wellington Hill | Manchester, | 1987 | 390 | 1,890,200 | 17,120,662 | - | 6,378,825 | 1,890,200 | 23,499,487 | 25,389,687 | (12,579,923 | ) | 12,809,764 | (I | ) | |||||||||||||
Westwood Glen | Westwood, | 1972 | 156 | 1,616,505 | 10,806,004 | - | 699,189 | 1,616,505 | 11,505,193 | 13,121,698 | (3,413,301 | ) | 9,708,396 | 703,056 | ||||||||||||||
Whisper Creek | Denver, CO | 2002 | 272 | 5,310,000 | 22,998,558 | - | 601,945 | 5,310,000 | 23,600,504 | 28,910,504 | (4,186,540 | ) | 24,723,963 | 13,580,000 | ||||||||||||||
Wilkins Glen | Medfield, | 1975 | 103 | 538,483 | 3,629,943 | - | 1,103,055 | 538,483 | 4,732,998 | 5,271,481 | (1,563,292 | ) | 3,708,189 | 1,241,514 | ||||||||||||||
Windridge (CA) | Laguna | 1989 | 344 | 2,662,900 | 23,985,497 | - | 3,897,385 | 2,662,900 | 27,882,881 | 30,545,781 | (14,182,946 | ) | 16,362,835 | (I | ) | |||||||||||||
Woodlake (WA) | Kirkland, | 1984 | 288 | 6,631,400 | 16,735,484 | - | 2,181,634 | 6,631,400 | 18,917,118 | 25,548,518 | (7,504,369 | ) | 18,044,149 | (O | ) | |||||||||||||
ERPOP Wholly Owned | 48,189 | 1,258,252,506 | 4,674,586,623 | - | 383,757,442 | 1,258,252,506 | 5,058,344,065 | 6,316,596,571 | (1,223,300,257 | ) | 5,093,296,314 | 2,114,902,657 | ||||||||||||||||
ERPOP Partially | ||||||||||||||||||||||||||||
Ball Park Lofts | Denver, CO | 2003 | 339 | 5,481,556 | 53,308,741 | - | 866,766 | 5,481,556 | 54,175,507 | 59,657,063 | (8,972,384 | ) | 50,684,679 | - | ||||||||||||||
Butterfield Ranch | Chino Hills, | (F) | - | 15,617,708 | 3,581,933 | - | - | 15,617,708 | 3,581,933 | 19,199,641 | - | 19,199,641 | - | |||||||||||||||
Hudson Crossing II | New York, | (F) | - | 11,923,324 | 1,796,166 | - | - | 11,923,324 | 1,796,166 | 13,719,490 | - | 13,719,490 | - | |||||||||||||||
Vista Montana | San Jose, | (F) | - | 31,468,209 | 7,047,293 | - | - | 31,468,209 | 7,047,293 | 38,515,502 | - | 38,515,502 | - | |||||||||||||||
Vista Montana | San Jose, | (F) | - | 33,432,829 | 10,793,614 | - | - | 33,432,829 | 10,793,614 | 44,226,443 | (370,000 | ) | 43,856,443 | - | ||||||||||||||
Westgate | Pasadena, | (F) | - | - | 3,899,124 | - | - | - | 3,899,124 | 3,899,124 | - | 3,899,124 | - | |||||||||||||||
Westgate Pasadena and | Pasadena, | (F) | - | - | 390,813 | - | - | - | 390,813 | 390,813 | - | 390,813 | - | |||||||||||||||
ERPOP Partially | 339 | 97,923,626 | 80,817,684 | - | 866,766 | 97,923,626 | 81,684,450 | 179,608,076 | (9,342,384 | ) | 170,265,692 | - | ||||||||||||||||
ERPOP Partially | ||||||||||||||||||||||||||||
111 Lawrence Street | Brooklyn, | (F) | - | 40,099,922 | 68,626,760 | - | - | 40,099,922 | 68,626,760 | 108,726,683 | - | 108,726,683 | (P | ) | ||||||||||||||
Alta Pacific | Irvine, CA | 2008 | 132 | 10,752,145 | 34,564,980 | - | 30,391 | 10,752,145 | 34,595,371 | 45,347,516 | (936,915 | ) | 44,410,601 | 28,260,000 | ||||||||||||||
Bella Terra I | Mukilteo, | 2002 | 235 | 5,686,861 | 26,070,540 | - | 411,915 | 5,686,861 | 26,482,455 | 32,169,317 | (5,429,277 | ) | 26,740,040 | 23,350,000 | ||||||||||||||
Brookside Crossing I | Stockton, | 1981 | 90 | 625,000 | 4,663,298 | - | 1,574,196 | 625,000 | 6,237,493 | 6,862,493 | (2,325,246 | ) | 4,537,248 | 4,658,000 | ||||||||||||||
Brookside Crossing II | Stockton, | 1981 | 128 | 770,000 | 5,967,676 | - | 1,496,341 | 770,000 | 7,464,016 | 8,234,016 | (2,533,730 | ) | 5,700,286 | 4,867,000 | ||||||||||||||
Canyon Creek (CA) | San Ramon, | 1984 | 268 | 5,425,000 | 18,812,121 | - | 2,727,291 | 5,425,000 | 21,539,412 | 26,964,412 | (6,152,751 | ) | 20,811,661 | 28,000,000 | ||||||||||||||
City Lofts | Chicago, IL | 2008 | 278 | 6,882,467 | 61,364,586 | - | 7,638 | 6,882,467 | 61,372,224 | 68,254,691 | (1,128,784 | ) | 67,125,907 | 48,448,206 | ||||||||||||||
Copper Creek | Tempe, AZ | 1984 | 144 | 1,017,400 | 9,158,260 | - | 1,631,029 | 1,017,400 | 10,789,288 | 11,806,688 | (4,684,702 | ) | 7,121,986 | 5,112,000 | ||||||||||||||
Country Oaks | Agoura | 1985 | 256 | 6,105,000 | 29,561,865 | - | 2,779,840 | 6,105,000 | 32,341,705 | 38,446,705 | (8,039,145 | ) | 30,407,559 | 29,412,000 | ||||||||||||||
Initial Company Gross Amount Apartment Name Investment in Real Estate, Net at Dublin West Dublin, CA Edgewater Bakersfield, EDS Dulles Herndon, Fox Ridge Englewood, Hidden Lake Sacramento, Lakeview Lodi, CA Lakewood Tulsa, OK Lantern Cove Foster City, Legacy Park Central Concord, Mesa Del Oso Albuquerque, Montclair Metro Montclair, Mozaic Los Preserve at Briarcliff Atlanta, Red Road Commons Miami, FL Schooner Bay I Foster Schooner Bay II Foster Scottsdale Meadows Scottsdale, Silver Spring Silver South Shore Stockton, Strayhorse at Arrowhead Ranch Glendale, Third Square Cambridge, Vintage Ontario, 2007 Waterfield Square I Stockton, Waterfield Square II Stockton, Westgate Pasadena Apartments Pasadena, Westgate Pasadena Condos Pasadena, Willow Brook (CA) Pleasant ERPOP Partially Owned Encumbered Portfolio/Entity Encumbrances (1) Total Consolidated Investment in Real Estate S-10
Schedule III -— Real Estate and Accumulated Depreciation
December 31, 2008Description
Cost to Cost
Capitalized
Subsequent
to
Acquisition
(Improve-
ments, net)
(E)
Carried
at Close
of Period
12/31/08 Location Date of
Construction Units
(H) Land Building
&
Fixtures Land Building
&
Fixtures Land Building
&
Fixtures (A) Total (B) Accumulated
Depreciation
(C)
12/31/08 Encum-
brances (F) - 12,635,839 - - - 12,635,839 - 12,635,839 - 12,635,839 10,200,000
CA 1984 258 580,000 17,710,063 - 2,049,489 580,000 19,759,551 20,339,551 (5,297,462 ) 15,042,090 11,988,000
VA (F) - 30,000,000 - - - 30,000,000 - 30,000,000 - 30,000,000 17,435,166
CO 1984 300 2,490,000 17,522,114 - 2,852,550 2,490,000 20,374,664 22,864,664 (6,407,675 ) 16,456,989 20,300,000
CA 1985 272 1,715,000 16,413,154 - 1,940,915 1,715,000 18,354,069 20,069,069 (5,380,535 ) 14,688,534 15,165,000 1983 138 950,000 7,383,862 - 1,329,292 950,000 8,713,154 9,663,154 (2,671,748 ) 6,991,406 7,286,000 1985 152 855,000 6,480,774 - 1,195,513 855,000 7,676,287 8,531,287 (2,645,644 ) 5,885,643 5,600,000
CA 1985 232 6,945,000 23,332,206 - 1,922,369 6,945,000 25,254,575 32,199,575 (7,018,278 ) 25,181,297 36,403,000
CA 2003 259 6,469,230 46,745,854 - 171,754 6,469,230 46,917,608 53,386,838 (7,593,609 ) 45,793,229 37,650,000
NM 1983 221 4,305,000 12,160,419 - 1,124,166 4,305,000 13,284,585 17,589,585 (4,156,242 ) 13,433,343 9,923,737
NJ (F) - 2,208,343 27,117,930 - - 2,208,343 27,117,930 29,326,273 - 29,326,273 14,539,923
Angeles,
CA 2007 272 8,500,000 59,048,104 - 150,850 8,500,000 59,198,955 67,698,955 (4,430,123 ) 63,268,832 47,205,878
GA 1994 182 6,370,000 17,766,322 - 380,918 6,370,000 18,147,240 24,517,240 (1,985,310 ) 22,531,930 6,000,000 (F) - 27,383,547 69,216,843 - - 27,383,547 69,216,843 96,600,390 - 96,600,390 39,027,806
City, CA 1985 168 5,345,000 20,509,239 - 1,754,561 5,345,000 22,263,800 27,608,800 (5,908,871 ) 21,699,929 27,000,000
City, CA 1985 144 4,550,000 18,142,163 - 1,995,009 4,550,000 20,137,173 24,687,173 (5,266,511 ) 19,420,661 23,760,000
AZ 1984 168 1,512,000 11,423,349 - 1,333,647 1,512,000 12,756,996 14,268,996 (5,224,101 ) 9,044,895 9,100,000
Spring,
MD (F) - 18,539,817 121,364,121 - - 18,539,817 121,364,121 139,903,938 - 139,903,938 98,674,159
CA 1979 129 840,000 9,380,786 - 1,451,837 840,000 10,832,623 11,672,623 (3,078,712 ) 8,593,911 6,833,000
AZ 1998 136 4,400,000 12,968,002 - 78,787 4,400,000 13,046,788 17,446,788 (943,498 ) 16,503,291 8,288,385
MA (F) - 27,812,384 222,817,028 - 8,840 27,812,384 222,825,869 250,638,252 (152 ) 250,638,100 158,515,054
CA 2005- 300 7,059,230 47,677,762 - 52,736 7,059,230 47,730,498 54,789,728 (3,974,134 ) 50,815,594 33,000,000
CA 1984 170 950,000 9,300,249 - 2,020,111 950,000 11,320,361 12,270,361 (3,588,853 ) 8,681,508 6,923,000
CA 1984 158 845,000 8,657,988 - 1,583,787 845,000 10,241,775 11,086,775 (3,048,347 ) 8,038,428 6,595,000
CA (F) - 22,898,848 46,467,688 - - 22,898,848 46,467,688 69,366,536 - 69,366,536 163,160,000
CA (F) - 29,977,725 13,024,529 - - 29,977,725 13,024,529 43,002,254 - 43,002,254 15,990,869
Hill, CA 1985 228 5,055,000 38,388,672 - 1,505,300 5,055,000 39,893,972 44,948,972 (7,402,498 ) 37,546,474 29,000,000 5,418 318,555,758 1,159,809,303 - 35,561,075 318,555,758 1,195,370,378 1,513,926,137 (117,252,852 ) 1,396,673,285 1,037,671,184 1,884,355,798 132,759 $ 4,052,411,347 $ 13,382,526,574 $ - $ 1,255,300,930 $ 4,052,411,347 $ 14,637,827,504 $ 18,690,238,851 $ (3,561,300,168 ) $ 15,128,938,683 $ 5,036,929,639 (1) See attached Encumbrances ReconciliationERP OPERATING LIMITED PARTNERSHIPSchedule III - Real Estate and Accumulated DepreciationDecember 31, 2008NOTES: Cost Capitalized Subsequent to Gross Amount Carried Initial Cost to Acquisition at Close of Description Company (Improvements, net) (E) Period 12/31/10 Date of Building & Building & Building & Accumulated Investment in Real Apartment Name Location Construction Units (H) Land Fixtures Land Fixtures Land Fixtures (A) Total (B) Depreciation (C) Estate, Net at 12/31/10 (B) Encumbrances Woodlake (WA) Kirkland, WA 1984 288 6,631,400 16,735,484 — 2,745,189 6,631,400 19,480,673 26,112,073 (9,005,733 ) 17,106,340 (L ) 39,395 1,192,346,786 4,453,550,234 — 370,524,330 1,192,346,786 4,824,074,564 6,016,421,350 (1,346,626,508 ) 4,669,794,842 2,595,245,052 Butterfield Ranch Chino Hills, CA (F) — 15,617,709 4,512,495 — — 15,617,709 4,512,495 20,130,204 — 20,130,204 — Hudson Crossing II New York, NY (F) — 5,000,000 — — — 5,000,000 — 5,000,000 — 5,000,000 — — 20,617,709 4,512,495 — — 20,617,709 4,512,495 25,130,204 — 25,130,204 — Brooklyner (fka 111 Lawrence) Brooklyn, NY (G) 2010 490 40,099,922 217,648,526 — (1,947 ) 40,099,922 217,646,579 257,746,501 — 257,746,501 141,741,076 1401 South State (fka City Lofts) Chicago, IL 2008 278 6,882,467 61,575,245 — 53,017 6,882,467 61,628,262 68,510,729 (5,846,831 ) 62,663,898 51,014,150 2300 Elliott Seattle, WA 1992 92 796,800 7,173,725 — 5,462,325 796,800 12,636,050 13,432,850 (7,894,112 ) 5,538,738 6,833,000 Bellevue Meadows Bellevue, WA 1983 180 4,507,100 12,574,814 — 4,122,712 4,507,100 16,697,526 21,204,626 (7,309,912 ) 13,894,714 16,538,000 Canyon Creek (CA) San Ramon, CA 1984 268 5,425,000 18,812,121 — 4,809,646 5,425,000 23,621,767 29,046,767 (8,225,808 ) 20,820,959 28,000,000 Canyon Ridge San Diego, CA 1989 162 4,869,448 11,955,064 — 1,757,641 4,869,448 13,712,705 18,582,153 (6,531,026 ) 12,051,127 15,165,000 Copper Creek Tempe, AZ 1984 144 1,017,400 9,158,260 — 1,846,036 1,017,400 11,004,296 12,021,696 (5,587,555 ) 6,434,141 5,112,000 Country Oaks Agoura Hills, CA 1985 256 6,105,000 29,561,865 — 3,142,792 6,105,000 32,704,657 38,809,657 (10,694,009 ) 28,115,648 29,412,000 EDS Dulles Herndon, VA (F) — 18,875,631 — — — 18,875,631 — 18,875,631 — 18,875,631 18,342,242 Fox Ridge Englewood, CO 1984 300 2,490,000 17,522,114 — 3,394,463 2,490,000 20,916,577 23,406,577 (8,158,317 ) 15,248,260 20,300,000 Lantern Cove Foster City, CA 1985 232 6,945,000 23,332,206 — 2,722,185 6,945,000 26,054,391 32,999,391 (8,961,365 ) 24,038,026 36,403,000 Mesa Del Oso Albuquerque, NM 1983 221 4,305,000 12,160,419 — 1,556,306 4,305,000 13,716,725 18,021,725 (5,210,415 ) 12,811,310 9,525,810 Montclair Metro Montclair, NJ 2009 163 2,400,887 43,570,641 — 2,092 2,400,887 43,572,733 45,973,620 (2,218,030 ) 43,755,590 34,439,480 Monterra in Mill Creek Mill Creek, WA 2003 139 2,800,000 13,255,123 — 236,867 2,800,000 13,491,990 16,291,990 (3,232,493 ) 13,059,497 7,286,000 Preserve at Briarcliff Atlanta, GA 1994 182 6,370,000 17,766,322 — 646,793 6,370,000 18,413,115 24,783,115 (3,777,603 ) 21,005,512 6,000,000 Red Road Commons Miami, FL (G) 2009 404 27,383,547 99,555,530 — (2,216 ) 27,383,547 99,553,314 126,936,861 (3,497,205 ) 123,439,656 74,150,144 Rosecliff Quincy, MA 1990 156 5,460,000 15,721,570 — 1,453,717 5,460,000 17,175,287 22,635,287 (6,797,434 ) 15,837,853 17,400,000 Schooner Bay I Foster City, CA 1985 168 5,345,000 20,509,239 — 3,191,061 5,345,000 23,700,300 29,045,300 (7,741,356 ) 21,303,944 27,000,000 Schooner Bay II Foster City, CA 1985 144 4,550,000 18,142,163 — 2,985,085 4,550,000 21,127,248 25,677,248 (6,970,045 ) 18,707,203 23,760,000 Scottsdale Meadows Scottsdale, AZ 1984 168 1,512,000 11,423,349 — 1,629,554 1,512,000 13,052,903 14,564,903 (6,274,752 ) 8,290,151 9,100,000 Strayhorse at Arrowhead Ranch Glendale, AZ 1998 136 4,400,000 12,968,002 — 186,009 4,400,000 13,154,011 17,554,011 (2,422,470 ) 15,131,541 7,971,429 Surrey Downs Bellevue, WA 1986 122 3,057,100 7,848,618 — 1,993,876 3,057,100 9,842,494 12,899,594 (4,301,654 ) 8,597,940 9,829,000 Veridian (fka Silver Spring) Silver Spring, MD (G) 2009 457 18,539,817 130,485,284 — 18,886 18,539,817 130,504,170 149,043,987 (6,908,776 ) 142,135,211 115,744,722 Virgil Square Los Angeles, CA 1979 142 5,500,000 15,216,613 — 1,334,954 5,500,000 16,551,567 22,051,567 (3,992,519 ) 18,059,048 9,900,000 Willow Brook (CA) Pleasant Hill, CA 1985 228 5,055,000 38,388,672 — 1,857,343 5,055,000 40,246,015 45,301,015 (10,264,218 ) 35,036,797 29,000,000 5,232 194,692,119 866,325,485 — 44,399,197 194,692,119 910,724,682 1,105,416,801 (142,817,905 ) 962,598,896 749,967,053 Portfolio/Entity Encumbrances (1) 1,417,683,780 124,866 $ 4,336,999,983 $ 13,999,852,420 $ — $ 1,365,518,589 $ 4,336,999,983 $ 15,365,371,009 $ 19,702,370,992 $ (4,337,356,641 ) $ 15,365,014,351 $ 4,762,895,885 (A) See attached Encumbrances Reconciliation
| (A) | The balance of furniture & fixtures included in the total investment in real estate amount was | |
(B) | The cost, net of accumulated depreciation, for Federal Income Tax purposes as of December 31, | |
(C) | The life to compute depreciation for building is 30 years, for building improvements ranges from 5 to 10 years, for furniture & fixtures and replacements is 5 years, and for in-place leases is the average remaining term of each respective lease. | |
(D) | This asset consists of various acquisition dates and largely represents furniture, fixtures and equipment, leasehold improvements and capitalized software costs owned by the Management Business, which are generally depreciated over periods ranging from 3 to 7 years. | |
(E) | Primarily represents capital expenditures for major maintenance and replacements incurred subsequent to each property’s acquisition date. | |
(F) | Represents land | |
(G) | A portion or all of these properties includes commercial space (retail, parking and/or office space). | |
(H) | Total properties and units exclude | |
(I) | through | |
|
| |
S-11
| ||||
| Exhibit | Description | Location | ||
| 3.1 |
| Included as Exhibit | ||
| 4.1 | Indenture, dated October 1, 1994, between the Operating Partnership and The Bank of New York Mellon Trust Company, N.A., as successor trustee (“Indenture”). | Included as Exhibit 4(a) to the Operating Partnership’s Form S-3 filed on October 7, 1994. | ||
| 4.2 | First Supplemental Indenture to Indenture, dated as of September 9, 2004. | Included as Exhibit 4.2 to the Operating Partnership’s Form 8-K, filed on September 10, 2004. | ||
| 4.3 | Second Supplemental Indenture to Indenture, dated as of August 23, 2006. | Included as Exhibit 4.1 to the Operating Partnership’s Form 8-K dated August 16, 2006, filed on August 23, 2006. | ||
| 4.4 | Third Supplemental Indenture to Indenture, dated as of June 4, 2007. | Included as Exhibit 4.1 to the Operating Partnership’s Form 8-K dated May 30, 2007, filed on June 1, 2007. | ||
| 4.5 |
|
| ||
Terms Agreement regarding 6.95% Notes due March 2, 2011. | Included as Exhibit 1 to the Operating Partnership’s Form 8-K, filed on March 2, 2001. | |||
| 4.6 | Terms Agreement regarding 6.625% Notes due March 15, 2012. | Included as Exhibit 1 to the Operating Partnership’s Form 8-K, filed on March 14, 2002. | ||
Form of 5.50% Note due October 1, 2012. | Included as Exhibit 4.2 to the Operating Partnership’s Form 8-K dated May 30, 2007, filed on June 1, 2007. | |||
| 4.8 | Form of 5.2% Note due April 1, 2013. | Included as Exhibit 4 to the Operating Partnership’s Form 8-K, filed on March 19, 2003. | ||
| | ||||
| 4.9 | Form of 5.25% Note due September 15, 2014. | Included as Exhibit 4.1 to the Operating Partnership’s Form 8-K, filed on September 10, 2004. | ||
| | ||||
| 4.10 | Terms Agreement regarding 6.63% (subsequently remarketed to a 6.584% fixed rate) Notes due April 13, 2015. | Included as Exhibit 1 to the Operating Partnership’s Form 8-K, filed on April 13, 1998. | ||
| | ||||
| 4.11 | Terms Agreement regarding 5.125% Notes due March 15, 2016. | Included as Exhibit 1.1 to the Operating Partnership’s Form 8-K, filed on September 13, 2005. | ||
| | ||||
| 4.12 | Form of 5.375% Note due August 1, 2016. | Included as Exhibit 4.1 to the Operating Partnership’s Form 8-K dated January 11, 2006, filed on January 18, 2006. | ||
| |
|
| ||
Form of 5.75% Note due June 15, 2017. | Included as Exhibit 4.3 to the Operating Partnership’s Form 8-K dated May 30, 2007, filed on June 1, 2007. |
| Exhibit | Description | Location | ||
| 4.14 | Terms Agreement regarding 7 1/8% Notes due October 15, 2017. | Included as Exhibit 1 to the Operating Partnership’s Form 8-K, filed on October 9, 1997. | ||
| 4.15 | Form of 4.75% Note due July 15, 2020. | Included as Exhibit 4.1 to the Operating Partnership’s Form 8-K dated July 12, 2010, filed on July 15, 2010. | ||
| 4.16 | Terms Agreement regarding 7.57% Notes due August 15, 2026. | Included as Exhibit 1 to the Operating Partnership’s Form 8-K, filed on August 13, 1996. | ||
| 4.17 | Form of 3.85% Exchangeable Senior | Included as Exhibit 4.2 to the Operating Partnership’s Form 8-K dated August 16, 2006, filed on August 23, 2006. | ||
|
| |||
|
| |||
Noncompetition Agreement (Zell). | Included as an exhibit to Equity Residential’s Form S-11 Registration Statement, File No. 33-63158. | |||
| | ||||
| 10.2* | Noncompetition Agreement (Spector). | Included as an exhibit to Equity Residential’s Form S-11 Registration Statement, File No. 33-63158. | ||
| | ||||
| 10.3* | Form of Noncompetition Agreement (other officers). | Included as an exhibit to Equity Residential’s Form S-11 Registration Statement, File No. 33-63158. | ||
|
| |||
Revolving Credit Agreement dated as of February 28, 2007 among ERP Operating Limited Partnership, Bank of America, N.A., as administrative agent, JP Morgan Chase Bank, N.A., as syndication agent, Banc of America Securities LLC and J.P. Morgan Securities Inc., as joint lead arrangers and joint book runners, | Included as Exhibit | |||
| 10.5 | Guaranty of Payment made as of February 28, 2007 between Equity Residential and Bank of America, N.A., as | Included as Exhibit 10.2 to the Operating Partnership’s Form 8-K dated February 28, 2007, filed on March 5, 2007. | ||
| 10.6 | Amendment to Revolving Credit Agreement. | Included as Exhibit 10.1 to Equity Residential’s Form 10-Q for the quarterly period ended March 31, 2007. | ||
| |
|
| ||
Credit Agreement dated as of October 5, 2007 among ERP Operating Limited Partnership, Bank of America, N.A., as administrative agent, JPMorgan Chase Bank, N.A., as syndication agent, Banc of America Securities LLC, as joint lead arranger and joint book runner, J.P. Morgan Securities Inc., as joint lead arranger and joint book runner, Citicorp North America Inc., Deutsche Bank Securities Inc., Regions Bank, The Royal Bank of Scotland plc, and U.S. Bank National Association, as documentation agents, and a syndicate of other banks (the “Term Loan Agreement”). | Included as Exhibit | |||
| 10.8 | Guaranty of Payment made as of October 5, 2007 between Equity Residential and Bank of America, N.A., as | Included as Exhibit 10.2 to the Operating Partnership’s Form 8-K dated October 5, 2007, filed on October 11, 2007. | ||
| Exhibit | Description | Location | ||
| 10.9 | Amended and Restated Limited Partnership Agreement of Lexford Properties, L.P. | Included as Exhibit 10.16 to Equity Residential’s Form 10-K for the year ended December 31, 1999. | ||
| |
|
| ||
Equity Residential Second Restated 2002 Share Incentive Plan dated December 10, 2008. | Included as Exhibit 10.15 to Equity Residential’s Form 10-K for the year ended December 31, 2008. | |||
| | ||||
| 10.11* | First Amendment to Second Restated 2002 Share Incentive Plan. | Included as Exhibit 10.1 to Equity Residential’s Form 10-Q for the quarterly period ended September 30, 2010. | ||
| 10.12* | Equity Residential Amended and Restated 1993 Share Option and Share Award Plan. | Included as Exhibit 10.11 to Equity Residential’s Form 10-K for the year ended December 31, 2001. | ||
| | ||||
| 10.13* | First Amendment to Equity Residential 1993 Share Option and Share Award Plan. | Included as Exhibit 10.1 to Equity Residential’s Form 10-Q for the quarterly period ended June 30, 2003. | ||
| | ||||
| 10.14* | Second Amendment to Equity Residential 1993 Share Option and Share Award Plan. | Included as Exhibit 10.20 to Equity Residential’s Form 10-K for the year ended December 31, 2006. | ||
| | ||||
| 10.15* | Third Amendment to Equity Residential 1993 Share Option and Share Award Plan. | Included as Exhibit 10.1 to Equity Residential’s Form 10-Q for the quarterly period ended June 30, 2007. | ||
| | ||||
| 10.16* | Fourth Amendment to Equity Residential 1993 Share Option and Share Award Plan. | Included as Exhibit 10.2 to Equity Residential’s Form 10-Q for the quarterly period ended September 30, 2008. | ||
| | ||||
| 10.17* | Fifth Amendment to Equity Residential 1993 Share Option and Share Award Plan dated December 10, 2008. | Included as Exhibit 10.21 to Equity Residential’s Form 10-K for the year ended December 31, 2008. | ||
| |
|
| ||
Form of Change in Control Agreement between Equity Residential and other executive officers. | Included as Exhibit 10.13 to Equity Residential’s Form 10-K for the year ended December 31, 2001. | |||
| |
|
| ||
| 10.19* | Form of First Amendment to Amended and Restated Change in Control/Severance Agreement with each executive officer. | Included as Exhibit 10.1 to Equity Residential’s Form 10-Q for the quarterly period ended March 31, 2009. | ||
| | ||||
| 10.20* | Form of Indemnification Agreement between Equity Residential and each trustee and executive officer. | Included as Exhibit 10.18 to Equity Residential’s Form 10-K for the year ended December 31, 2003. | ||
| | ||||
| 10.21* | Form of Letter Agreement between Equity Residential and each of David J. Neithercut, Frederick C. Tuomi, Alan W. George and Bruce C. Strohm. | Included as Exhibit 10.3 to Equity Residential’s Form 10-Q for the quarterly period ended September 30, 2008. | ||
| | ||||
| 10.22* | Form of Executive Retirement Benefits Agreement. | Included as Exhibit 10.24 to Equity Residential’s Form 10-K for the year ended December 31, 2006. | ||
| | ||||
| 10.23* | Retirement Benefits Agreement between Samuel Zell and Equity Residential dated October 18, 2001. | Included as Exhibit 10.18 to Equity Residential’s Form 10-K for the year ended December 31, 2001. | ||
| | ||||
| 10.24* | Amended and Restated Deferred Compensation Agreement between Equity Residential and Gerald A. Spector dated January 1, 2002. | Included as Exhibit 10.17 to Equity Residential’s Form 10-K for the year ended December 31, 2001. | ||
| |
| |||
| 10.25* | Change in Control Agreement dated | Included as Exhibit | ||
| March 18, 2009. | ||||
| | ||||
| 10.26* | Summary of Changes to Trustee Compensation. | Included as Exhibit 10.1 to the Operating Partnership’s Form 8-K dated September 21, 2005, filed on September 27, 2005. | ||
| | ||||
| Exhibit | Description | Location | ||
| 10.27* | The Equity Residential Supplemental Executive Retirement Plan as Amended and Restated effective November 1, 2008. | Included as Exhibit 10.4 to Equity Residential’s Form 10-Q for the quarterly period ended September 30, 2008. | ||
| | ||||
| 10.28* | Amendment to the Equity Residential Supplemental Executive Retirement Plan. | Included as Exhibit 10.1 to Equity Residential’s Form 10-Q for the quarterly period ended June 30, 2010. | ||
| 10.29* | The Equity Residential Grandfathered Supplemental Executive Retirement Plan as Amended and Restated effective January 1, 2005. | Included as Exhibit 10.2 to Equity Residential’s Form 10-Q for the quarterly period ended March 31, 2008. | ||
| 10.30 | Amended and Restated Sales Agency Financing Agreement, dated February 3, 2011, among the Company, the Operating Partnership and Merrill Lynch, Pierce, Fenner & Smith Incorporated. | Included as Exhibit 1.1 to the Operating Partnership’s Form 8-K dated and filed on February 3, 2011. | ||
| 10.31 | Sales Agency Financing Agreement, dated February 3, 2011, among the Company, the Operating Partnership and BNY Mellon Capital Markets, LLC. | Included as Exhibit 1.2 to the Operating Partnership’s Form 8-K dated and filed on February 3, 2011. | ||
| 10.32 | Amended and Restated Sales Agency Financing Agreement, dated February 3, 2011, among the Company, the Operating Partnership and J.P. Morgan Securities LLC. | Included as Exhibit 1.3 to the Operating Partnership’s Form 8-K dated and filed on February 3, 2011. | ||
| 10.33 | Amended and Restated Sales Agency Financing Agreement, dated February 3, 2011, among the Company, the Operating Partnership and Morgan Stanley & Co. Incorporated. | Included as Exhibit 1.4 to the Operating Partnership’s Form 8-K dated and filed on February 3, 2011. | ||
| 12 | Computation of Ratio of Earnings to Combined Fixed Charges. | Attached herein. | ||
| 21 | List of Subsidiaries of ERP Operating Limited Partnership. | Attached herein. | ||
| 23.1 | Consent of Ernst & Young LLP. | Attached herein. | ||
| 24 | Power of Attorney. | See the signature page to this report. | ||
| 31.1 | Certification of David J. Neithercut, Chief Executive Officer of Registrant’s General Partner. | Attached herein. | ||
| 31.2 | Certification of Mark J. Parrell, Chief Financial Officer of Registrant’s General Partner. | Attached herein. | ||
| 32.1 | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of David J. Neithercut, Chief Executive Officer of Registrant’s General Partner. | Attached herein. | ||
| 32.2 | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Mark J. Parrell, Chief Financial Officer of Registrant’s General Partner. | Attached herein. | ||
| * | Management contracts and compensatory plans or arrangements filed as exhibits to this report are identified by an asterisk. |
* Management contracts and compensatory plans or arrangements filed as exhibits to this report are identified by an asterisk.