Equity Residential (EQR) 10-Q 5 Nov 09 2009 Q3 Quarterly report Financial data

Statement Of Financial Position

Statement Of Financial Position Unclassified - Real Estate Operations (USD $)
In Thousands	9 Months Ended Sep. 30, 2009	9 Months Ended Dec. 31, 2008
Investment in real estate
Land	$3,629,701	$3,671,299
Depreciable property	13,755,610	13,908,594
Projects under development	753,831	855,473
Land held for development	239,158	254,873
Investment in real estate	18,378,300	18,690,239
Accumulated depreciation	(3,785,198)	(3,561,300)
Investment in real estate, net	14,593,102	15,128,939
Cash and cash equivalents	637,588	890,794
Investments in unconsolidated entities	4,616	5,795
Deposits - restricted	360,022	152,732
Escrow deposits - mortgage	18,954	19,729
Deferred financing costs, net	50,438	53,817
Other assets	126,676	283,304
Total assets	15,791,396	16,535,110
Liabilities:
Mortgage notes payable	4,885,560	5,036,930
Notes, net	4,949,560	5,447,012
Lines of credit	0	0
Accounts payable and accrued expenses	131,730	108,463
Accrued interest payable	72,970	113,846
Other liabilities	264,221	289,562
Security deposits	60,517	64,355
Distributions payable	100,230	141,843
Total liabilities	10,464,788	11,202,011
Commitments and contingencies	-	-
Redeemable Noncontrolling Interests - Operating Partnership	236,333	264,394
Shareholders' equity:
Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized; 1,950,925 shares issued and outstanding as of September 30, 2009 and 1,951,475 shares issued and outstanding as of December 31, 2008	208,773	208,786
Common Shares of beneficial interest, $0.01 par value; 1,000,000,000 shares authorized; 276,147,420 shares issued and outstanding as of September 30, 2009 and 272,786,760 shares issued and outstanding as of December 31, 2008	2,761	2,728
Paid in capital	4,364,503	4,273,489
Retained earnings	405,250	456,152
Accumulated other comprehensive loss	(21,636)	(35,799)
Total shareholders' equity	4,959,651	4,905,356
Noncontrolling Interests:
Operating Partnership	118,332	137,645
Preference Interests and Units	0	184
Partially Owned Properties	12,292	25,520
Total Noncontrolling Interests	130,624	163,349
Total equity	5,090,275	5,068,705
Total liabilities and equity	$15,791,396	$16,535,110

1_Statement Of Financial Positi

Statement Of Financial Position Unclassified - Real Estate Operations (Parenthetical) (USD $)
	Sep. 30, 2009	Dec. 31, 2008
Preferred Shares of beneficial interest, par value	0.01	0.01
Preferred Shares of beneficial interest, shares authorized	100,000,000	100,000,000
Preferred Shares of beneficial interest, shares issued	1,950,925	1,951,475
Preferred Shares of beneficial interest, shares outstanding	1,950,925	1,951,475
Common Shares of beneficial interest, par value	0.01	0.01
Common Shares of beneficial interest, shares authorized	1,000,000,000	1,000,000,000
Common Shares of beneficial interest, shares issued	276,147,420	272,786,760
Common Shares of beneficial interest, shares outstanding	276,147,420	272,786,760

Statement Of Income Real Estate

Statement Of Income Real Estate Investment Trusts (USD $)
In Thousands, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
REVENUES
Rental income	$490,104	$508,619	$1,471,383	$1,485,814
Fee and asset management	2,653	2,387	7,928	7,397
Total revenues	492,757	511,006	1,479,311	1,493,211
EXPENSES
Property and maintenance	125,904	134,658	374,067	389,042
Real estate taxes and insurance	55,743	52,039	161,777	153,317
Property management	18,725	18,920	56,457	59,587
Fee and asset management	1,931	1,983	5,916	6,154
Depreciation	147,477	145,382	438,726	417,662
General and administrative	9,881	9,849	30,476	34,040
Impairment	0	0	11,124	0
Total expenses	359,661	362,831	1,078,543	1,059,802
Operating income	133,096	148,175	400,768	433,409
Interest and other income	3,215	2,871	15,854	11,038
Other expenses	(1,922)	(2,106)	(2,228)	(2,886)
Interest:
Expense incurred, net	(121,520)	(122,345)	(361,085)	(361,125)
Amortization of deferred financing costs	(3,394)	(2,410)	(9,614)	(6,748)
Income before income and other taxes, (loss) income from investments in unconsolidated entities, net gain on sales of unconsolidated entities and land parcels and discontinued operations	9,475	24,185	43,695	73,688
Income and other tax (expense) benefit	(459)	(1,317)	(2,846)	(5,937)
(Loss) income from investments in unconsolidated entities	(151)	250	(2,372)	60
Net gain on sales of unconsolidated entities	3,959	0	6,718	0
Net gain on sales of land parcels	0	2,976	0	2,976
Income from continuing operations	12,824	26,094	45,195	70,787
Discontinued operations, net	130,541	161,031	289,523	403,859
Net income	143,365	187,125	334,718	474,646
Net (income) loss attributable to Noncontrolling Interests:
Operating Partnership	(7,699)	(11,141)	(18,119)	(28,622)
Preference Interests and Units	(2)	(4)	(9)	(11)
Partially Owned Properties	317	(106)	391	(1,765)
Net income attributable to controlling interests	135,981	175,874	316,981	444,248
Preferred distributions	(3,619)	(3,628)	(10,859)	(10,887)
Net income available to Common Shares	$132,362	$172,246	$306,122	$433,361
Earnings per share - basic:
Income from continuing operations available to Common Shares	0.03	0.08	0.12	0.2
Net income available to Common Shares	0.48	0.64	1.12	1.61
Weighted average Common Shares outstanding	273,658	270,345	272,966	269,582
Earnings per share - diluted:
Income from continuing operations available to Common Shares	0.03	0.08	0.12	0.2
Net income available to Common Shares	0.48	0.63	1.12	1.59
Weighted average Common Shares outstanding	290,215	290,795	289,518	290,267
Distributions declared per Common Share outstanding	0.3375	0.4825	1.3025	1.4475

Statement Of Other Comprehensiv

Statement Of Other Comprehensive Income (USD $)
In Thousands	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Comprehensive income:
Net income	$143,365	$187,125	$334,718	$474,646
Other comprehensive income (loss) - derivative instruments:
Unrealized holding gains (losses) arising during the period	(462)	(7,231)	12,193	(12,438)
Losses reclassified into earnings from other comprehensive income	709	712	3,014	1,928
Other	0	0	449	0
Other comprehensive income (loss) - other instruments:
Unrealized holding gains (losses) arising during the period	339	87	3,450	(285)
(Gains) realized during the period	0	0	(4,943)	0
Comprehensive income	143,951	180,693	348,881	463,851
Comprehensive (income) attributable to Noncontrolling Interests	(7,384)	(11,251)	(17,737)	(30,398)
Comprehensive income attributable to controlling interests	$136,567	$169,442	$331,144	$433,453

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect Real Estate (USD $)
In Thousands	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$334,718	$474,646
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	451,487	447,936
Amortization of deferred financing costs	9,646	6,751
Amortization of discounts on investment securities	(1,661)	0
Amortization of discounts and premiums on debt	3,346	4,060
Amortization of deferred settlements on derivative instruments	2,003	893
Impairment	11,124	0
Write-off of pursuit costs	1,973	2,856
Transaction costs	255	30
Loss (income) from investments in unconsolidated entities	2,372	(60)
Distributions from unconsolidated entities - return on capital	129	71
Net (gain) on sales of investment securities	(4,943)	0
Net (gain) on sales of unconsolidated entities	(6,718)	0
Net (gain) on sales of land parcels	0	(2,976)
Net (gain) on sales of discontinued operations	(274,933)	(365,052)
(Gain) on debt extinguishments	(4,420)	(225)
Unrealized (gain) loss on derivative instruments	(2)	68
Compensation paid with Company Common Shares	13,975	16,753
Changes in assets and liabilities:
Decrease (increase) in deposits - restricted	4,890	(2,131)
Decrease (increase) in other assets	4,353	(16,122)
Increase in accounts payable and accrued expenses	35,555	66,078
(Decrease) in accrued interest payable	(40,876)	(45,145)
(Decrease) in other liabilities	(6,167)	(19,829)
(Decrease) increase in security deposits	(3,838)	1,907
Net cash provided by operating activities	532,268	570,509
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in real estate - acquisitions	(18,500)	(344,231)
Investment in real estate - development/other	(268,213)	(399,339)
Improvements to real estate	(93,049)	(131,365)
Additions to non-real estate property	(1,315)	(2,050)
Interest capitalized for real estate under development	(28,704)	(45,117)
Proceeds from disposition of real estate, net	729,153	829,125
Proceeds from disposition of unconsolidated entities	0	2,629
Distributions from unconsolidated entities - return of capital	5,396	405
Purchase of investment securities	(52,822)	0
Proceeds from sale of investment securities	215,753	0
Transaction costs	(255)	(30)
(Increase) in deposits on real estate acquisitions, net	(246,835)	(168,936)
Decrease (increase) in mortgage deposits	775	(1,660)
Acquisition of Noncontrolling Interests - Partially Owned Properties	(11,480)	(20)
Net cash provided by (used for) investing activities	229,904	(260,589)
CASH FLOWS FROM FINANCING ACTIVITIES:
Loan and bond acquisition costs	(9,203)	(6,199)
Mortgage notes payable:
Proceeds	657,785	1,242,425
Restricted cash	34,655	28,390
Lump sum payoffs	(774,481)	(359,782)
Scheduled principal repayments	(13,701)	(18,949)
Gain (loss) on debt extinguishments	2,400	(41)
Notes, net:
Lump sum payoffs	(505,849)	(147,124)
Gain on debt extinguishments	2,020	266
Lines of credit:
Proceeds	0	841,000
Repayments	0	(980,000)
Proceeds from (payments on) settlement of derivative instruments	11,253	(13,256)
Proceeds from sale of Common Shares	4,698	5,085
Proceeds from exercise of options	7,420	16,772
Common Shares repurchased and retired	(1,124)	(10,935)
Premium on redemption of Preferred Shares	0	(4)
Payment of offering costs	(463)	(88)
Other financing activities, net	(8)	(8)
Contributions - Noncontrolling Interests - Partially Owned Properties	893	1,842
Contributions - Noncontrolling Interests - Operating Partnership	78	0
Distributions:
Common Shares	(395,786)	(391,072)
Preferred Shares	(10,859)	(10,893)
Preference Interests and Units	(11)	(11)
Noncontrolling Interests - Operating Partnership	(23,736)	(26,309)
Noncontrolling Interests - Partially Owned Properties	(1,359)	(1,810)
Net cash (used for) provided by financing activities	(1,015,378)	169,299
Net (decrease) increase in cash and cash equivalents	(253,206)	479,219
Cash and cash equivalents, beginning of period	890,794	50,831
Cash and cash equivalents, end of period	637,588	530,050
SUPPLEMENTAL INFORMATION:
Cash paid for interest, net of amounts capitalized	396,922	402,810
Net cash paid for income and other taxes	4,047	2,302
Real estate acquisitions/dispositions/other:
Mortgage loans assumed	0	24,946
Valuation of OP Units issued	1,034	849
Mortgage loans (assumed) by purchaser	(4,387)	0
Amortization of deferred financing costs:
Investment in real estate, net	(2,936)	(1,509)
Deferred financing costs, net	12,582	8,260
Amortization of discounts and premiums on debt:
Investment in real estate, net	(3)	(3)
Mortgage notes payable	(4,631)	(4,717)
Notes, net	7,980	8,780
Amortization of deferred settlements on derivative instruments:
Other liabilities	(1,011)	(1,035)
Accumulated other comprehensive loss	3,014	1,928
Unrealized (gain) loss on derivative instruments:
Other assets	(9,910)	(3,777)
Mortgage notes payable	(1,755)	3,992
Notes, net	866	1,011
Other liabilities	(1,396)	11,280
Accumulated other comprehensive loss	12,193	(12,438)
Proceeds from (payments on) settlement of derivative instruments:
Other assets	11,253	(39)
Other liabilities	0	(13,217)
Repurchase of notes, net not yet settled:
Other liabilities	$0	($11,356)

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Thousands			PAID IN CAPITAL	RETAINED EARNINGS	ACCUMULATED OTHER COMPREHENSIVE LOSS	OPERATING PARTNERSHIP	PREFERENCE INTERESTS AND UNITS	PARTIALLY OWNED PROPERTIES [Member]	Total
Balance, beginning of year at Dec. 31, 2008	$208,786	$2,728	$4,273,489	$456,152	($35,799)	$137,645	$184	$25,520	$5,068,705
Conversion of Preferred Shares into Common Shares			13
Issuance of OP Units to Noncontrolling Interests						1,034
Accumulated other comprehensive income - derivative instruments:
Unrealized holding gains arising during the period					12,193				12,193
Losses reclassified into earnings from other comprehensive income					3,014				3,014
Other					449				449
Conversion of Series B Junior Preference Units							(184)
Conversion of 7.00% Series E Cumulative Convertible	(13)
Conversion of OP Units into Common Shares		24	43,193
Issuance of LTIP Units to Noncontrolling Interests						78
Accumulated other comprehensive income - other instruments:
Unrealized holding gains arising during the period					3,450				3,450
(Gains) realized during the period					(4,943)				(4,943)
Exercise of share options		3	7,417
Conversion of OP Units held by Noncontrolling Interests into OP Units held by General Partner						(43,217)
Employee Share Purchase Plan (ESPP)		3	4,695
Equity compensation associated with Noncontrolling Interests						896
Share-based employee compensation expense:
Performance shares			133
Restricted/performance shares		3
Restricted shares			8,780
Share options			4,563
ESPP discount			1,124
Net income (loss)				316,981		18,119		(391)	334,718
Common Shares repurchased and retired			(1,124)
Contributions by Noncontrolling Interests								893
Common Share distributions				(357,024)
Offering costs			(463)
Distributions to Noncontrolling Interests						(20,886)		(1,367)
Preferred Share distributions				(10,859)
Supplemental Executive Retirement Plan (SERP)			20,781
Change in carrying value of Redeemable Noncontrolling Interests - Operating Partnership						20,893
Other								(658)
Acquisition of Noncontrolling Interests - Partially Owned Properties			(1,496)
Acquisition of additional ownership interest by Operating Partnership								(11,705)
Change in market value of Redeemable Noncontrolling Interests - Operating Partnership			7,168
Adjustment for Noncontrolling Interests ownership in Operating Partnership			(3,770)			3,770
Balance, end of period at Sep. 30, 2009	$208,773	$2,761	$4,364,503	$405,250	($21,636)	$118,332	$0	$12,292	$5,090,275

1.Business

1.Business
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
1.Business	1. Business Equity Residential (EQR), a Maryland real estate investment trust (REIT) formed in March 1993, is an SP 500 company focused on the acquisition, development and management of high quality apartment properties in top United States growth markets. EQR has elected to be taxed as a REIT. EQR is the general partner of, and as of September30, 2009 owned an approximate 95.0% ownership interest in, ERP Operating Limited Partnership, an Illinois limited partnership (the Operating Partnership). The Company is structured as an umbrella partnership REIT (UPREIT) under which all property ownership and related business operations are conducted through the Operating Partnership and its subsidiaries. References to the Company include EQR, the Operating Partnership and those entities owned or controlled by the Operating Partnership and/or EQR. As of September30, 2009, the Company, directly or indirectly through investments in title holding entities, owned all or a portion of 501 properties in 23 states and the District of Columbia consisting of 138,887 units. The ownership breakdown includes (table does not include various uncompleted development properties): Properties Units Wholly Owned Properties 436 120,378 Partially Owned Properties: Consolidated 26 5,126 Unconsolidated 37 8,788 Military Housing (Fee Managed) 2 4,595 501 138,887

2.Summary of Significant Accoun

2.Summary of Significant Accounting Policies
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
2.Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) and certain reclassifications considered necessary for a fair presentation have been included. Certain reclassifications have been made to the prior period financial statements in order to conform to the current year presentation. Operating results for the nine months ended September30, 2009 are not necessarily indicative of the results that may be expected for the year ending December31, 2009. In preparation of the Companys financial statements in conformity with accounting principles generally accepted in the United States, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The balance sheet at December31, 2008 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. For further information, including definitions of capitalized terms not defined herein, refer to the consolidated financial statements and footnotes thereto included in the Companys annual report on Form 10-K for the year ended December31, 2008. Income and Other Taxes Due to the structure of the Company as a REIT and the nature of the operations of its operating properties, no provision for federal income taxes has been made at the EQR level. Historically, the Company has generally only incurred certain state and local income, excise and franchise taxes. The Company has elected Taxable REIT Subsidiary (TRS) status for certain of its corporate subsidiaries, primarily those entities engaged in condominium conversion and corporate housing activities and as a result, these entities will incur both federal and state income taxes on any taxable income of such entities after consideration of any net operating losses. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. These assets and liabilities are measured using enacted tax rates for which the temporary differences are expected to be recovered or settled. The effects of deferred tax assets and liabilities are recognized in earnings in the period enacted. The Companys deferred tax assets

3.Equity and Redeemable Noncont

3.Equity and Redeemable Noncontrolling Interests
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
3.Equity and Redeemable Noncontrolling Interests	3. Equity and Redeemable Noncontrolling Interests The following tables present the changes in the Companys issued and outstanding Common Shares and Units (which includes OP Units and Long-Term Incentive Plan (LTIP) Units) for the nine months ended September30, 2009: 2009 Common Shares Common Shares outstanding at January1, 272,786,760 Common Shares Issued: Conversion of Series E Preferred Shares 612 Conversion of OP Units 2,441,029 Exercise of options 352,222 Employee Share Purchase Plan 300,471 Restricted share grants, net 313,776 Common Shares Other: Repurchased and retired (47,450 ) Common Shares outstanding at September30, 276,147,420 Units Units outstanding at January1, 16,679,777 LTIP Units, net 154,616 OP Units issued through consolidations 32,061 Conversion of Series B Junior Preference Units 7,517 Conversion of OP Units to Common Shares (2,441,029 ) Units outstanding at September30, 14,432,942 Total Common Shares and Units outstanding at September30, 290,580,362 Units Ownership Interest in Operating Partnership 5.0% LTIP Units Issued: Issuance per unit $ 0.50 Issuance contribution valuation $ 0.1 million OP Units Issued: Consolidations per unit $ 26.50 Consolidations valuation $ 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 In September 2009, the Company announced the creation of an At-The-Market (ATM) share offering program which would allow the Company to sell up to 17.0million Common Shares from time to time over the next three years into the existing trading market at current market prices as well as through negotiated transactions. During the nine months ended September30, 2009, no shares were issued through the ATM program. During the nine months ended September30, 2009, the Company repurchased 47,450 of its Common Shares at an average price of $23.69 per share for total consideration of $1.1 million. These shares were retired subsequent to the repurchases. All of the shares repurchased during the nine months ended September30, 2009 were repurchased from employees at the then current market prices to cover the minimum statutory tax withholding obligations related to the vesting of employees restricted shares. EQR has authorization to repurchase an additional $466.5 million of its shares as of September30, 2009. The equity positions of 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, are collectively referred to as the Noncontrolling Interests Operating Partnership. Subject to certain exceptions (including the book-up requirements of LTIP Units), the Noncontrolling Interests Operating Partnership may exchange their Units with EQR for EQR Common Shares on a one-for-o

4.Real Estate

4.Real Estate
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
4.Real Estate	4. Real Estate The following table summarizes the carrying amounts for the Companys investment in real estate (at cost) as of September30, 2009 and December31, 2008 (amounts in thousands): September30, 2009 December31, 2008 Land $ 3,629,701 $ 3,671,299 Depreciable property: Buildings and improvements 12,656,386 12,836,310 Furniture, fixtures and equipment 1,099,224 1,072,284 Projects under development: Land 138,410 175,355 Construction-in-progress 615,421 680,118 Land held for development: Land 181,430 205,757 Construction-in-progress 57,728 49,116 Investment in real estate 18,378,300 18,690,239 Accumulated depreciation (3,785,198 ) (3,561,300 ) Investment in real estate, net $ 14,593,102 $ 15,128,939 During the nine months ended September30, 2009, the Company acquired the 75% equity interest in one previously unconsolidated property it did not already own consisting of 250 units with a gross sales price of $18.5 million from its institutional joint venture partner. During the nine months ended September30, 2009, the Company disposed of the following to unaffiliated parties (sales price in thousands): Properties Units Sales Price Rental Properties: Consolidated 47 8,819 $ 734,509 Unconsolidated (1) 3 732 57,700 Condominium Conversion Properties 1 50 9,786 Total 51 9,601 $ 801,995 (1) The Company owned a 25% interest in these unconsolidated rental properties. Sales price listed is the gross sales price. The Companys buyout of its partners interest in one previously unconsolidated property is not included in the above totals. The Company recognized a net gain on sales of discontinued operations of approximately $274.9 million and a net gain on sales of unconsolidated entities of approximately $6.7 million on the above sales.

Dispose of Real Estate

Dispose of Real Estate
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
5.Commitments to Acquire/Dispose of Real Estate	5. Commitments to Acquire/Dispose of Real Estate As of October30, 2009, in addition to the property that was subsequently acquired as discussed in Note 16, the Company had entered into separate agreements to acquire three rental properties consisting of 686 units for $134.7 million. As of October30, 2009, in addition to the properties that were subsequently disposed of as discussed in Note 16, the Company had entered into separate agreements to dispose of the following (sales price in thousands): Properties Units Sales Price Rental Properties: Consolidated 29 5,660 $ 443,111 Unconsolidated 2 444 22,100 Total 31 6,104 $ 465,211 The closings of these pending transactions are subject to certain conditions and restrictions, therefore, there can be no assurance that these transactions will be consummated or that the final terms will not differ in material respects from those summarized in the preceding paragraphs.

6.Investments in Partially Owne

6.Investments in Partially Owned Entities
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
6.Investments in Partially Owned Entities	6. Investments in Partially Owned Entities The Company has co-invested in various properties with unrelated third parties which are either consolidated or accounted for under the equity method of accounting (unconsolidated). The following table summarizes the Companys investments in partially owned entities as of September30, 2009 (amounts in thousands except for project and unit amounts): Consolidated Unconsolidated Development Projects Held for and/or Under Development Completed, Not Stabilized(4) Completed and Stabilized Other Total Institutional Joint Ventures (5) Total projects (1) - 3 2 21 26 37 Total units (1) - 898 432 3,796 5,126 8,788 Debt Secured (2): EQR Ownership (3) $ 340,813 $ 192,516 $ 61,260 $ 219,171 $ 813,760 $ 105,266 Noncontrolling Ownership - - - 82,786 82,786 315,798 Total (at 100%) $ 340,813 $ 192,516 $ 61,260 $ 301,957 $ 896,546 $ 421,064 (1) Project and unit counts exclude all uncompleted development projects until those projects are completed. (2) All debt is non-recourse to the Company with the exception of $42.2 million in mortgage debt on various development projects. In addition, $66.0 million in mortgage debt on one development project will become recourse to the Company upon completion of that project. (3) Represents the Companys current economic ownership interest. (4) Projects included here are substantially complete. However, they may still require additional exterior and interior work for all units to be available for leasing. (5) Unconsolidated debt maturities and rates for institutional joint ventures are as follows: $112.6 million, May1, 2010, 8.33%; $121.0 million, December1, 2010, 7.54%; $143.8 million, March1, 2011, 6.95%; and $43.6 million, July1, 2019, 5.305%. A portion of this mortgage debt is also partially collateralized by $22.0 million in unconsolidated restricted cash set aside from the net proceeds of property sales. The Company acquired its partners interest in one of the previously unconsolidated properties containing 250 units in the third quarter of 2009 for $18.5 million and as a result, the project is now consolidated and wholly owned.

7.Deposits - Restricted

7.Deposits - Restricted
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
7.Deposits - Restricted	7. Deposits Restricted The following table presents the Companys restricted deposits as of September30, 2009 and December31, 2008 (amounts in thousands): September30, 2009 December31, 2008 Taxdeferred (1031)exchange proceeds $ 246,835 $ - Earnest money on pending acquisitions 1,200 1,200 Restricted deposits on debt (1) 61,574 96,229 Resident security and utility deposits 39,472 41,478 Other 10,941 13,825 Totals $ 360,022 $ 152,732 (1) Primarily represents amounts held in escrow by the lender and released as draw requests are made on fully funded development mortgage loans.

8.Mortgage Notes Payable

8.Mortgage Notes Payable
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
8.Mortgage Notes Payable	8. Mortgage Notes Payable As of September30, 2009, the Company had outstanding mortgage debt of approximately $4.9 billion. During the nine months ended September30, 2009, the Company: Repaid $788.2 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 $157.8 million of new mortgage loans on development properties; Recognized a gain on early debt extinguishment of $2.4 million and wrote-off approximately $1.0 million of unamortized deferred financing costs; and Was released from $4.4 million of mortgage debt assumed by the purchaser on a disposed property. As of September30, 2009, scheduled maturities for the Companys outstanding mortgage indebtedness were at various dates through September1, 2048. At September30, 2009, the interest rate range on the Companys mortgage debt was 0.20% to 12.465%. During the nine months ended September30, 2009, the weighted average interest rate on the Companys mortgage debt was 4.90%.

9.Notes

9.Notes
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
9.Notes	9. Notes As of September30, 2009, the Company had outstanding unsecured notes of approximately $4.9 billion. During the nine months ended September30, 2009, the Company repurchased at par $105.2 million of its 4.75% fixed rate public notes due June15, 2009 and $185.2 million of its 6.95% fixed rate public notes due March2, 2011 pursuant to a cash tender offer announced on January16, 2009. The Company wrote-off approximately $0.4 million of unamortized deferred financing costs and approximately $1.1 million of unamortized discounts on notes payable in connection with these repurchases. In addition, the Company repaid the remaining $122.2 million of its 4.75% fixed rate public notes at maturity and $75.8 million of its 5.20% fixed rate tax-exempt notes during the nine months ended September30, 2009. During the nine months ended September30, 2009, the Company repurchased $17.5 million of its 3.85% convertible fixed rate public notes due August15, 2026 at a discount to par of approximately 11.6%. The Company 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 in connection with these repurchases. As of September30, 2009, scheduled maturities for the Companys outstanding notes were at various dates through 2028. At September30, 2009, the interest rate range on the Companys notes was 0.34% to 7.57%. During the nine months ended September30, 2009, the weighted average interest rate on the Companys notes was 5.32%.

10.Lines of Credit

10.Lines of Credit
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
10.Lines of Credit	10. Lines of Credit The Operating Partnership has a $1.5 billion unsecured revolving credit facility maturing on February28, 2012, with the ability to increase available borrowings by an additional $500.0 million by adding additional banks to the facility or obtaining the agreement of existing banks to increase their commitments. Advances under the credit facility bear interest at variable rates based upon LIBOR at various interest periods plus a spread (currently 0.5%) dependent upon the Operating Partnerships credit rating or based on bids received from the lending group. EQR has guaranteed the Operating Partnerships credit facility up to the maximum amount and for the full term of the facility. During the year ended December31, 2008, one of the providers of the Operating Partnerships unsecured revolving credit facility declared bankruptcy. Under the existing terms of the credit facility, the providers share is up to $75.0 million of potential borrowings. As a result, the Operating Partnerships 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. As of September30, 2009, the amount available on the credit facility was $1.36 billion (net of $68.5 million which was restricted/dedicated to support letters of credit and net of the $75.0 million discussed above). The Company did not draw on its revolving credit facility at any time during the nine months ended September30, 2009.

11.Derivative and Other Fair Va

11.Derivative and Other Fair Value Instruments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
11.Derivative and Other Fair Value Instruments	11. Derivative and Other Fair Value Instruments The valuation of financial instruments requires the Company to make estimates and judgments that affect the fair value of the instruments. The Company, where possible, bases the fair values of its financial instruments, including its derivative instruments, on listed market prices and third party quotes. Where these are not available, the Company bases its estimates on current instruments with similar terms and maturities or on other factors relevant to the financial instruments. The carrying value of the Companys mortgage notes payable and unsecured notes were both approximately $4.9 billion at September30, 2009. The fair value of the Companys mortgage notes payable and unsecured notes were approximately $4.8 billion and $5.1 billion, respectively, at September30, 2009. The fair values of the Companys financial instruments, other than mortgage notes payable, unsecured notes, derivative instruments and investment securities, including cash and cash equivalents, lines of credit and other financial instruments, approximate their carrying or contract values. In the normal course of business, the Company is exposed to the effect of interest rate changes. The Company seeks to limit these risks by following established risk management policies and procedures including the use of derivatives to hedge interest rate risk on debt instruments. The following table summarizes the Companys consolidated derivative instruments at September30, 2009 (dollar amounts are in thousands): FairValue Hedges(1) Forward Starting Swaps (2) Development Cash Flow Hedges (3) Current Notional Balance $ 115,693 $ 100,000 $ 147,465 Lowest Possible Notional $ 115,693 $ 100,000 $ 20,330 Highest Possible Notional $ 117,694 $ 100,000 $ 194,111 Lowest Interest Rate 2.637% 4.306% 4.059% Highest Interest Rate 4.800% 4.306% 4.940% Earliest Maturity Date 2012 2021 2009 Latest Maturity Date 2013 2021 2011 (1) Fair Value Hedges Convert outstanding fixed rate debt to a floating interest rate. (2) Forward Starting Swaps Designed to partially fix the interest rate in advance of a planned future debt issuance. These swaps have a mandatory counterparty termination in 2012. (3) Development Cash Flow Hedges Convert outstanding floating rate debt to a fixed interest rate. The following table provides the location of the Companys derivative instruments within the accompanying Consolidated Balance Sheets and their fair market values as of September30, 2009 (amounts in thousands): Asset Derivatives Liability Derivatives BalanceSheet Location FairValue BalanceSheet Location FairValue Derivatives designated as hedging instruments: Interest Rate Contracts: Fair Value Hedges Otherassets $ 5,463 Otherliabilities $ - Forward Starting Swaps Other assets - Other liabilities (1,433 ) Development Cash Flow Hedges Other assets - Other liabilities (3

12.Earnings Per Share

12.Earnings Per Share
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
12.Earnings Per Share	12. Earnings Per Share The following tables set forth the computation of net income per share basic and net income per share diluted (amounts in thousands except per share amounts): Nine Months Ended September30, Quarter Ended September30, 2009 2008 2009 2008 Numerator for net income per share basic: Income from continuing operations $ 45,195 $ 70,787 $ 12,824 $ 26,094 Allocation to Noncontrolling Interests Operating Partnership, net (1,934 ) (3,583 ) (520 ) (1,350 ) Net loss (income) attributable to Noncontrolling Interests Partially Owned Properties 391 (1,765 ) 317 (106 ) Net income attributable to Preference Interests and Units (9 ) (11 ) (2 ) (4 ) Preferred distributions (10,859 ) (10,887 ) (3,619 ) (3,628 ) Income from continuing operations available to Common Shares, net of Noncontrolling Interests 32,784 54,541 9,000 21,006 Discontinued operations, net of Noncontrolling Interests 273,338 378,820 123,362 151,240 Numerator for net income per share basic $ 306,122 $ 433,361 $ 132,362 $ 172,246 Numerator for net income per share diluted: Income from continuing operations $ 45,195 $ 70,787 $ 12,824 $ 26,094 Net loss (income) attributable to Noncontrolling Interests Partially Owned Properties 391 (1,765 ) 317 (106 ) Net income attributable to Preference Interests and Units (9 ) (11 ) (2 ) (4 ) Preferred distributions (10,859 ) (10,887 ) (3,619 ) (3,628 ) Income from continuing operations available to Common Shares 34,718 58,124 9,520 22,356 Discontinued operations, net 289,523 403,859 130,541 161,031 Numerator for net income per share diluted $ 324,241 $ 461,983 $ 140,061 $ 183,387 Nine Months Ended September30, Quarter Ended September30, 2009 2008 2009 2008 Denominator for net income per share basic and diluted: Denominator for net income per share basic 272,966 269,582 273,658 270,345 Effect of dilutive securities: OP Units 16,024 17,840 15,604 17,398 Long-term compensation award shares/units 528 2,845 953 3,052 Denominator for net income per share diluted 289,518 290,267 290,215 290,795 Net income per share basic $ 1.12 $ 1.61 $ 0.48 $ 0.64 Net income per share diluted $ 1.12 $ 1.59 $ 0.48 $ 0.63 Net income per share basic

13.Discontinued Operations

13.Discontinued Operations
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
13.Discontinued Operations	13. Discontinued Operations The Company has presented separately as discontinued operations in all periods the results of operations for all consolidated assets disposed of, all operations related to active condominium conversion properties effective upon their respective transfer into a TRS and all properties held for sale, if any. The components of discontinued operations are outlined below and include the results of operations for the respective periods that the Company owned such assets during the nine months and quarters ended September30, 2009 and 2008 (amounts in thousands). Nine Months Ended September30, Quarter Ended September30, 2009 2008 2009 2008 REVENUES Rental income $ 52,595 $ 120,729 $ 8,502 $ 33,910 Total revenues 52,595 120,729 8,502 33,910 EXPENSES (1) Property and maintenance 18,707 36,972 3,857 10,796 Real estate taxes and insurance 6,094 14,465 1,045 3,923 Property management - (62 ) - - Depreciation 12,761 30,274 2,175 8,380 General and administrative 29 24 4 7 Total expenses 37,591 81,673 7,081 23,106 Discontinued operating income 15,004 39,056 1,421 10,804 Interest and other income 12 233 2 93 Interest (2): Expense incurred, net (308 ) (1,493 ) 2 (479 ) Amortization of deferred financing costs (32 ) (3 ) - (1 ) Income and other tax (expense) benefit (86 ) 1,014 (19 ) 359 Discontinued operations 14,590 38,807 1,406 10,776 Net gain on sales of discontinued operations 274,933 365,052 129,135 150,255 Discontinued operations, net $ 289,523 $ 403,859 $ 130,541 $ 161,031 (1) Includes expenses paid in the current period for properties sold or held for sale in prior periods related to the Companys period of ownership. (2) Includes only interest expense specific to secured mortgage notes payable for properties sold and/or held for sale. For the properties sold during the nine months ended September30, 2009 (excluding condominium conversion properties), the investment in real estate, net of accumulated depreciation, and the mortgage notes payable balances at December31, 2008 were $459.8 million and $17.8 million, respectively. The net real estate basis of the Companys active condominium conversion properties owned by the TRS and included in discontinued operations (excludes the Companys halted conversions as they are now held for use), which were included in investment in real estate, net in the consolidated balance sheets, was $2.9 million and $12.6

14.Commitments and Contingencie

14.Commitments and Contingencies
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
14.Commitments and Contingencies	14. Commitments and Contingencies The Company, as an owner of real estate, is subject to various Federal, state and local environmental laws. Compliance by the Company with existing laws has not had a material adverse effect on the Company. However, the Company cannot predict the impact of new or changed laws or regulations on its current properties or on properties that it may acquire in the future. The Company is party to a housing discrimination lawsuit brought by a non-profit civil rights organization in April 2006 in the U.S. District Court for the District of Maryland. The suit alleges that the Company designed and built approximately 300 of its properties in violation of the accessibility requirements of the Fair Housing Act and Americans with Disabilities Act. The suit seeks actual and punitive damages, injunctive relief (including modification of non-compliant properties), costs and attorneys fees. The Company believes it has a number of viable defenses, including that a majority of the named properties were completed before the operative dates of the statutes in question and/or were not designed or built by the Company. Accordingly, the Company is defending the suit vigorously. Due to the pendency of the Companys defenses and the uncertainty of many other critical factual and legal issues, it is not possible to determine or predict the outcome of the suit and as a result, no amounts have been accrued at September30, 2009. While no assurances can be given, the Company does not believe that the suit, if adversely determined, would have a material adverse effect on the Company. The Company does not believe there is any other litigation pending or threatened against it that, individually or in the aggregate, may reasonably be expected to have a material adverse effect on the Company. The Company has established a reserve and recorded a corresponding reduction to its net gain on sales of discontinued operations related to potential liabilities associated with its condominium conversion activities. The reserve covers potential product liability related to each conversion. The Company periodically assesses the adequacy of the reserve and makes adjustments as necessary. During the nine months ended September30, 2009, the Company recorded additional reserves of approximately $2.7 million (primarily related to an insurance settlement), paid approximately $1.9 million in claims and released approximately $1.0 million of remaining reserves for settled claims. As a result, the Company had total reserves of approximately $10.1 million at September30, 2009. While no assurances can be given, the Company does not believe that the ultimate resolution of these potential liabilities, if adversely determined, would have a material adverse effect on the Company. As of September30, 2009, the Company has six projects totaling 2,206 units in various stages of development with estimated completion dates ranging through June30, 2011. Some of the projects are developed solely by the Company, while others are co-developed with various third party development partners. The development venture agreements with partners are primarily deal-speci

15.Reportable Segments

15.Reportable Segments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
15.Reportable Segments	15. Reportable Segments Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by senior management. Senior management decides how resources are allocated and assesses performance on a monthly basis. The Companys primary business is owning, managing and operating multifamily residential properties, which includes the generation of rental and other related income through the leasing of apartment units to residents. Senior management evaluates the performance of each of our apartment communities individually and geographically, and both on a same store and non-same store basis; however, each of our apartment communities generally has similar economic characteristics, residents, products and services. The Companys operating segments have been aggregated by geography in a manner identical to that which is provided to its chief operating decision maker. The Companys fee and asset management, development (including its partially owned properties), condominium conversion and corporate housing (Equity Corporate Housing or ECH) activities are immaterial and do not individually meet the threshold requirements of a reportable segment and as such, have been aggregated in the Other segment in the tables presented below. All revenues are from external customers and there is no customer who contributed 10% or more of the Companys total revenues during the nine months and quarters ended September30, 2009 and 2008, respectively. The primary financial measure for the Companys rental real estate segment is net operating income (NOI), which represents rental income less: 1) property and maintenance expense; 2) real estate taxes and insurance expense; and 3) property management expense (all as reflected in the accompanying consolidated statements of operations). The Company believes that NOI is helpful to investors as a supplemental measure of the operating performance of a real estate company because it is a direct measure of the actual operating results of the Companys apartment communities. Current year NOI is compared to prior year NOI and current year budgeted NOI as a measure of financial performance. The following tables present NOI for each segment from our rental real estate specific to continuing operations for the nine months and quarters ended September30, 2009 and 2008, respectively, as well as total assets at September30, 2009 (amounts in thousands): Nine Months Ended September30, 2009 Northeast Northwest Southeast Southwest Other (3) Total Rental income: Same store (1) $ 411,723 $ 277,253 $ 308,426 $ 322,756 $ - $ 1,320,158 Non-same store/other (2)(3) 44,783 13,383 10,039 19,429 63,591 151,225 Total rental income 456,506 290,636 318,465 342,185 63,591 1,471,383 Operating expenses: Same store (1) 153,994 100,084 129,932 112,489 - 496,499 Non-same store/other (2)(3) 19,

Other

Other
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
16.Subsequent Events/Other	16. Subsequent Events/Other Subsequent Events Subsequent to September30, 2009 and up until the time of this filing, the Company: Acquired one apartment property consisting of 326 units for $99.5 million; Sold five consolidated apartment properties consisting of 1,480 units for $126.9 million (excluding condominium units) and one unconsolidated apartment property consisting of 238 units for $11.2 million (sales price listed is the gross sales price); Obtained $40.0 million of new mortgage debt; Repaid $164.5 million of mortgage loans; Entered into $200.0 million of forward starting swaps to hedge changes in interest rates related to future secured or unsecured debt issuances; and Entered into $200.0 million of fair value interest rate swaps to convert a portion of its fixed rate 2013 unsecured notes to a floating rate of interest. Other During the nine months ended September30, 2009, the Company recorded an approximate $11.1 million non-cash asset impairment charge on a parcel of land held for development. This charge was the result of an analysis of the parcels estimated fair value (determined using internally developed models based on market assumptions and comparable sales data) compared to its current capitalized carrying value. During the nine months ended September30, 2009 and 2008, the Company recorded approximately $1.3 million and $2.2 million of additional general and administrative expense, respectively, and $1.3 million and $0.3 million of additional property management expense, respectively, related primarily to cash severance for various employees.

Document Information

Document Information
	9 Months Ended Sep. 30, 2009 USD / shares
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 30, 2009	Oct. 29, 2009
Entity [Text Block]
Trading Symbol	EQR
Entity Registrant Name	EQUITY RESIDENTIAL
Entity Central Index Key	0000906107
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		276,144,161