Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 27, 2018 | |
Document And Entity Information [Line Items] | ||
Entity Registrant Name | EQUITY RESIDENTIAL | |
Entity Central Index Key | 906,107 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | EQR | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 368,213,717 | |
ERPOP [Member] | ||
Document And Entity Information [Line Items] | ||
Entity Registrant Name | ERP OPERATING LIMITED PARTNERSHIP | |
Entity Central Index Key | 931,182 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investment in real estate | ||
Land | $ 5,960,804 | $ 5,996,024 |
Depreciable property | 19,798,353 | 19,768,362 |
Projects under development | 96,609 | 163,547 |
Land held for development | 102,851 | 98,963 |
Investment in real estate | 25,958,617 | 26,026,896 |
Accumulated depreciation | (6,173,047) | (6,040,378) |
Investment in real estate, net | 19,785,570 | 19,986,518 |
Cash and cash equivalents | 44,453 | 50,647 |
Investments in unconsolidated entities | 59,091 | 58,254 |
Restricted deposits | 50,258 | 50,115 |
Other assets | 444,498 | 425,065 |
Total assets | 20,383,870 | 20,570,599 |
Liabilities: | ||
Mortgage notes payable, net | 2,894,344 | 3,618,722 |
Notes, net | 5,530,815 | 5,038,812 |
Line of credit and commercial paper | 234,318 | 299,757 |
Accounts payable and accrued expenses | 167,481 | 114,766 |
Accrued interest payable | 69,753 | 58,035 |
Other liabilities | 335,957 | 341,852 |
Security deposits | 64,748 | 65,009 |
Distributions payable | 206,794 | 192,828 |
Total liabilities | 9,504,210 | 9,729,781 |
Commitments and contingencies | ||
Redeemable Noncontrolling Interests – Operating Partnership | 354,567 | 366,955 |
Shareholders’ equity: | ||
Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized; 745,600 shares issued and outstanding as of March 31, 2018 and December 31, 2017 | 37,280 | 37,280 |
Common Shares of beneficial interest, $0.01 par value; 1,000,000,000 shares authorized; 368,211,911 shares issued and outstanding as of March 31, 2018 and 368,018,082 shares issued and outstanding as of December 31, 2017 | 3,682 | 3,680 |
Paid in capital | 8,910,306 | 8,886,586 |
Retained earnings | 1,415,638 | 1,403,530 |
Accumulated other comprehensive income (loss) | (77,734) | (88,612) |
Total shareholders’ equity | 10,289,172 | 10,242,464 |
Noncontrolling Interests: | ||
Operating Partnership | 234,628 | 226,691 |
Partially Owned Properties | 1,293 | 4,708 |
Total Noncontrolling Interests | 235,921 | 231,399 |
Total equity | 10,525,093 | 10,473,863 |
Total liabilities and equity/capital | $ 20,383,870 | $ 20,570,599 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Preferred Stock, Shares Issued | 745,600 | 745,600 |
Preferred Stock, Shares Outstanding | 745,600 | 745,600 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Issued | 368,211,911 | 368,018,082 |
Common Stock, Shares, Outstanding | 368,211,911 | 368,018,082 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
REVENUES | ||
Rental income | $ 632,831 | $ 603,920 |
Fee and asset management | 185 | 180 |
Total revenues | 633,016 | 604,100 |
EXPENSES | ||
Property and maintenance | 108,202 | 102,608 |
Real estate taxes and insurance | 91,914 | 81,728 |
Property management | 23,444 | 22,252 |
General and administrative | 16,278 | 14,173 |
Depreciation | 196,309 | 178,968 |
Total expenses | 436,147 | 399,729 |
Operating income | 196,869 | 204,371 |
Interest and other income | 5,880 | 601 |
Other expenses | (3,441) | (1,090) |
Interest: | ||
Expense incurred, net | (116,104) | (106,210) |
Amortization of deferred financing costs | (3,679) | (2,296) |
Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of real estate properties and land parcels | 79,525 | 95,376 |
Income and other tax (expense) benefit | (213) | (262) |
Income (loss) from investments in unconsolidated entities | (977) | (1,073) |
Net gain (loss) on sales of real estate properties | 142,213 | 36,707 |
Net gain (loss) on sales of land parcels | 19,193 | |
Net income | 220,548 | 149,941 |
Net (income) loss attributable to Noncontrolling Interests: | ||
Operating Partnership | (8,059) | (5,411) |
Partially Owned Properties | (680) | (788) |
Net income attributable to controlling interests | 211,809 | 143,742 |
Preferred distributions | (773) | (773) |
Net income available to Common Shares | $ 211,036 | $ 142,969 |
Earnings per share – basic: | ||
Net income available to Common Shares | $ 0.57 | $ 0.39 |
Weighted average Common Shares outstanding | 367,800 | 366,605 |
Earnings per share – diluted: | ||
Net income available to Common Shares | $ 0.57 | $ 0.39 |
Weighted average Common Shares outstanding | 383,018 | 382,280 |
Distributions declared per Common Share outstanding | $ 0.54 | $ 0.50375 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Comprehensive income: | ||
Net income | $ 220,548 | $ 149,941 |
Other comprehensive income (loss) – derivative instruments: | ||
Unrealized holding gains (losses) arising during the period | 6,087 | |
Losses reclassified into earnings from other comprehensive income | 4,791 | 4,583 |
Other comprehensive income (loss) | 10,878 | 4,583 |
Comprehensive income | 231,426 | 154,524 |
Comprehensive (income) attributable to Noncontrolling Interests | (9,139) | (6,366) |
Comprehensive income attributable to controlling interests | $ 222,287 | $ 148,158 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 220,548 | $ 149,941 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 196,309 | 178,968 |
Amortization of deferred financing costs | 3,679 | 2,296 |
Amortization of above/below market lease intangibles | 1,098 | 856 |
Amortization of discounts and premiums on debt | 1,532 | 1,130 |
Amortization of deferred settlements on derivative instruments | 4,788 | 4,580 |
Write-off of pursuit costs | 931 | 715 |
(Income) loss from investments in unconsolidated entities | 977 | 1,073 |
Distributions from unconsolidated entities – return on capital | 615 | 648 |
Net (gain) loss on sales of real estate properties | (142,213) | (36,707) |
Net (gain) loss on sales of land parcels | (19,193) | |
Net (gain) loss on debt extinguishment | 22,110 | 11,698 |
Compensation paid with Company Common Shares | 10,278 | 7,873 |
Changes in assets and liabilities: | ||
(Increase) decrease in other assets | (15,396) | (11,059) |
Increase (decrease) in accounts payable and accrued expenses | 48,997 | 42,472 |
Increase (decrease) in accrued interest payable | 11,718 | 13,437 |
Increase (decrease) in other liabilities | (4,692) | (45,324) |
Increase (decrease) in security deposits | (261) | 500 |
Net cash provided by operating activities | 361,018 | 303,904 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Investment in real estate – acquisitions | (54,134) | |
Investment in real estate – development/other | (40,813) | (103,291) |
Capital expenditures to real estate | (36,747) | (39,297) |
Non-real estate capital additions | (1,191) | (289) |
Interest capitalized for real estate under development | (1,688) | (8,238) |
Proceeds from disposition of real estate, net | 284,670 | 80,064 |
Investments in unconsolidated entities | (2,799) | (1,704) |
Distributions from unconsolidated entities – return of capital | 113 | |
Net cash provided by (used for) investing activities | 147,298 | (72,642) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Debt financing costs | (4,345) | |
Mortgage notes payable, net: | ||
Lump sum payoffs | (725,639) | (351,774) |
Scheduled principal repayments | (1,720) | (1,964) |
Notes, net: | ||
Proceeds | 497,010 | |
Line of credit and commercial paper: | ||
Line of credit proceeds | 415,000 | |
Line of credit repayments | (415,000) | |
Commercial paper proceeds | 1,107,561 | 1,310,188 |
Commercial paper repayments | (1,173,000) | (1,015,500) |
Proceeds from (payments on) settlement of derivative instruments | 1,638 | |
Proceeds from Employee Share Purchase Plan (ESPP) | 1,681 | 1,574 |
Proceeds from exercise of options | 1,600 | 3,142 |
Payment of offering costs | (26) | (21) |
Contributions – Noncontrolling Interests – Partially Owned Properties | 125 | 125 |
Contributions – Noncontrolling Interests – Operating Partnership | 1 | |
Distributions: | ||
Common Shares | (185,484) | (184,302) |
Preferred Shares | (773) | (1,545) |
Noncontrolling Interests – Operating Partnership | (6,666) | (7,218) |
Noncontrolling Interests – Partially Owned Properties | (4,220) | (5,134) |
Net cash provided by (used for) financing activities | (514,367) | (264,127) |
Net increase (decrease) in cash and cash equivalents and restricted deposits | (6,051) | (32,865) |
Cash and cash equivalents and restricted deposits, beginning of period | 100,762 | 219,088 |
Cash and cash equivalents and restricted deposits, end of period | 94,711 | 186,223 |
Cash and cash equivalents | 44,453 | 42,139 |
Restricted deposits | 50,258 | 144,084 |
SUPPLEMENTAL INFORMATION: | ||
Cash paid for interest, net of amounts capitalized | 96,404 | 86,668 |
Net cash paid for income and other taxes | 462 | 468 |
Amortization of deferred financing costs: | ||
Other assets | 603 | 603 |
Mortgage notes payable, net | 2,084 | 794 |
Notes, net | 992 | 899 |
Amortization of discounts and premiums on debt: | ||
Mortgage notes payable, net | 897 | 525 |
Notes, net | 635 | 605 |
Amortization of deferred settlements on derivative instruments: | ||
Other liabilities | (3) | (3) |
Accumulated other comprehensive income | 4,791 | 4,583 |
Write-off of pursuit costs: | ||
Investment in real estate, net | 931 | 685 |
Other assets | 10 | |
Accounts payable and accrued expenses | 20 | |
(Income) loss from investments in unconsolidated entities: | ||
Investments in unconsolidated entities | 627 | 701 |
Other liabilities | 350 | 372 |
Realized/unrealized (gain) loss on derivative instruments: | ||
Other assets | (9,132) | 1,106 |
Notes, net | (2,289) | (1,106) |
Other liabilities | 5,334 | |
Accumulated other comprehensive income | 6,087 | |
Investments in unconsolidated entities: | ||
Investments in unconsolidated entities | (2,079) | (804) |
Other liabilities | (720) | (900) |
Debt financing costs: | ||
Notes, net | (4,345) | |
Proceeds from (payments on) settlement of derivative instruments: | ||
Other assets | 1,638 | |
Mortgage Notes Payable, Net [Member] | ||
Mortgage notes payable, net: | ||
Net gain (loss) on debt extinguishment | $ (22,110) | $ (11,698) |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited) - 3 months ended Mar. 31, 2018 - USD ($) $ in Thousands | Total | PREFERRED SHARES | COMMON SHARES, $0.01 PAR VALUE | PAID IN CAPITAL | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | OPERATING PARTNERSHIP | PARTIALLY OWNED PROPERTIES |
Balance, beginning of year at Dec. 31, 2017 | $ 10,242,464 | $ 37,280 | $ 3,680 | $ 8,886,586 | $ 1,403,530 | $ (88,612) | ||
Balance, beginning of year at Dec. 31, 2017 | 231,399 | $ 226,691 | $ 4,708 | |||||
COMMON SHARES, $0.01 PAR VALUE | ||||||||
Conversion of OP Units into Common Shares | 134 | (134) | ||||||
Exercise of share options | 1 | 1,599 | ||||||
Employee Share Purchase Plan (ESPP) | 1,681 | |||||||
Restricted shares | 1 | 2,622 | ||||||
Share options | 7,338 | |||||||
ESPP discount | 297 | |||||||
PAID IN CAPITAL | ||||||||
Conversion of OP Units into Common Shares | 134 | (134) | ||||||
Exercise of share options | 1 | 1,599 | ||||||
Employee Share Purchase Plan (ESPP) | 1,681 | |||||||
Share-based employee compensation expense: | ||||||||
Offering costs | (26) | |||||||
Supplemental Executive Retirement Plan (SERP) | 83 | |||||||
Change in market value of Redeemable Noncontrolling Interests – Operating Partnership | (12,831) | 12,831 | ||||||
Adjustment for Noncontrolling Interests ownership in Operating Partnership | (2,839) | 2,839 | ||||||
RETAINED EARNINGS | ||||||||
Net income attributable to controlling interests | 211,809 | 211,809 | ||||||
Common Share distributions | (198,928) | |||||||
Preferred Share distributions | (773) | |||||||
Accumulated other comprehensive income (loss) – derivative instruments: | ||||||||
Unrealized holding gains (losses) arising during the period | 6,087 | 6,087 | ||||||
Losses reclassified into earnings from other comprehensive income | (4,791) | 4,791 | ||||||
NONCONTROLLING INTERESTS | ||||||||
Issuance of restricted units to Noncontrolling Interests | 1 | |||||||
Conversion of OP Units into Common Shares | 134 | (134) | ||||||
Equity compensation associated with Noncontrolling Interests | 4,803 | |||||||
Net income | 220,548 | |||||||
Distributions to Noncontrolling Interests | (7,188) | (4,220) | ||||||
Change in carrying value of Redeemable Noncontrolling Interests - Operating Partnership | 443 | (443) | ||||||
Adjustment for Noncontrolling Interests ownership in Operating Partnership | (2,839) | 2,839 | ||||||
Net income attributable to Noncontrolling Interests | 8,059 | 8,059 | 680 | |||||
PARTIALLY OWNED PROPERTIES | ||||||||
Net income | 220,548 | |||||||
Distributions to Noncontrolling Interests | (7,188) | (4,220) | ||||||
Net income attributable to Noncontrolling Interests | 8,059 | 8,059 | 680 | |||||
Contributions by Noncontrolling Interests | 125 | |||||||
Balance, end of period at Mar. 31, 2018 | 10,289,172 | $ 37,280 | $ 3,682 | $ 8,910,306 | $ 1,415,638 | $ (77,734) | ||
Balance, end of period at Mar. 31, 2018 | $ 235,921 | $ 234,628 | $ 1,293 |
CONSOLIDATED BALANCE SHEETS OF
CONSOLIDATED BALANCE SHEETS OF ERP OPERATING LIMITED PARTNERSHIP (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investment in real estate | ||
Land | $ 5,960,804 | $ 5,996,024 |
Depreciable property | 19,798,353 | 19,768,362 |
Projects under development | 96,609 | 163,547 |
Land held for development | 102,851 | 98,963 |
Investment in real estate | 25,958,617 | 26,026,896 |
Accumulated depreciation | (6,173,047) | (6,040,378) |
Investment in real estate, net | 19,785,570 | 19,986,518 |
Cash and cash equivalents | 44,453 | 50,647 |
Investments in unconsolidated entities | 59,091 | 58,254 |
Restricted deposits | 50,258 | 50,115 |
Other assets | 444,498 | 425,065 |
Total assets | 20,383,870 | 20,570,599 |
Liabilities: | ||
Mortgage notes payable, net | 2,894,344 | 3,618,722 |
Notes, net | 5,530,815 | 5,038,812 |
Line of credit and commercial paper | 234,318 | 299,757 |
Accounts payable and accrued expenses | 167,481 | 114,766 |
Accrued interest payable | 69,753 | 58,035 |
Other liabilities | 335,957 | 341,852 |
Security deposits | 64,748 | 65,009 |
Distributions payable | 206,794 | 192,828 |
Total liabilities | 9,504,210 | 9,729,781 |
Commitments and contingencies | ||
Partners’ Capital: | ||
Accumulated other comprehensive income (loss) | (77,734) | (88,612) |
Noncontrolling Interests – Partially Owned Properties | 1,293 | 4,708 |
Total liabilities and equity/capital | 20,383,870 | 20,570,599 |
ERPOP [Member] | ||
Investment in real estate | ||
Land | 5,960,804 | 5,996,024 |
Depreciable property | 19,798,353 | 19,768,362 |
Projects under development | 96,609 | 163,547 |
Land held for development | 102,851 | 98,963 |
Investment in real estate | 25,958,617 | 26,026,896 |
Accumulated depreciation | (6,173,047) | (6,040,378) |
Investment in real estate, net | 19,785,570 | 19,986,518 |
Cash and cash equivalents | 44,453 | 50,647 |
Investments in unconsolidated entities | 59,091 | 58,254 |
Restricted deposits | 50,258 | 50,115 |
Other assets | 444,498 | 425,065 |
Total assets | 20,383,870 | 20,570,599 |
Liabilities: | ||
Mortgage notes payable, net | 2,894,344 | 3,618,722 |
Notes, net | 5,530,815 | 5,038,812 |
Line of credit and commercial paper | 234,318 | 299,757 |
Accounts payable and accrued expenses | 167,481 | 114,766 |
Accrued interest payable | 69,753 | 58,035 |
Other liabilities | 335,957 | 341,852 |
Security deposits | 64,748 | 65,009 |
Distributions payable | 206,794 | 192,828 |
Total liabilities | 9,504,210 | 9,729,781 |
Commitments and contingencies | ||
Redeemable Limited Partners | 354,567 | 366,955 |
Partners’ Capital: | ||
Preference Units | 37,280 | 37,280 |
General Partner | 10,329,626 | 10,293,796 |
Limited Partners | 234,628 | 226,691 |
Accumulated other comprehensive income (loss) | (77,734) | (88,612) |
Total partners’ capital | 10,523,800 | 10,469,155 |
Noncontrolling Interests – Partially Owned Properties | 1,293 | 4,708 |
Total capital | 10,525,093 | 10,473,863 |
Total liabilities and equity/capital | $ 20,383,870 | $ 20,570,599 |
CONSOLIDATED STATEMENTS OF OPE9
CONSOLIDATED STATEMENTS OF OPERATIONS OF ERP OPERATING LIMITED PARTNERSHIP (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
REVENUES | ||
Rental income | $ 632,831 | $ 603,920 |
Fee and asset management | 185 | 180 |
Total revenues | 633,016 | 604,100 |
EXPENSES | ||
Property and maintenance | 108,202 | 102,608 |
Real estate taxes and insurance | 91,914 | 81,728 |
Property management | 23,444 | 22,252 |
General and administrative | 16,278 | 14,173 |
Depreciation | 196,309 | 178,968 |
Total expenses | 436,147 | 399,729 |
Operating income | 196,869 | 204,371 |
Interest and other income | 5,880 | 601 |
Other expenses | (3,441) | (1,090) |
Interest: | ||
Expense incurred, net | (116,104) | (106,210) |
Amortization of deferred financing costs | (3,679) | (2,296) |
Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of real estate properties and land parcels | 79,525 | 95,376 |
Income and other tax (expense) benefit | (213) | (262) |
Income (loss) from investments in unconsolidated entities | (977) | (1,073) |
Net gain (loss) on sales of real estate properties | 142,213 | 36,707 |
Net gain (loss) on sales of land parcels | 19,193 | |
Net income | 220,548 | 149,941 |
Partially Owned Properties | (680) | (788) |
Net income attributable to controlling interests | $ 211,809 | $ 143,742 |
Earnings per Unit – basic: | ||
Net income available to Units | $ 0.57 | $ 0.39 |
Earnings per Unit – diluted: | ||
Net income available to Units | $ 0.57 | $ 0.39 |
Weighted average Units outstanding | 383,018 | 382,280 |
ERPOP [Member] | ||
REVENUES | ||
Rental income | $ 632,831 | $ 603,920 |
Fee and asset management | 185 | 180 |
Total revenues | 633,016 | 604,100 |
EXPENSES | ||
Property and maintenance | 108,202 | 102,608 |
Real estate taxes and insurance | 91,914 | 81,728 |
Property management | 23,444 | 22,252 |
General and administrative | 16,278 | 14,173 |
Depreciation | 196,309 | 178,968 |
Total expenses | 436,147 | 399,729 |
Operating income | 196,869 | 204,371 |
Interest and other income | 5,880 | 601 |
Other expenses | (3,441) | (1,090) |
Interest: | ||
Expense incurred, net | (116,104) | (106,210) |
Amortization of deferred financing costs | (3,679) | (2,296) |
Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of real estate properties and land parcels | 79,525 | 95,376 |
Income and other tax (expense) benefit | (213) | (262) |
Income (loss) from investments in unconsolidated entities | (977) | (1,073) |
Net gain (loss) on sales of real estate properties | 142,213 | 36,707 |
Net gain (loss) on sales of land parcels | 19,193 | |
Net income | 220,548 | 149,941 |
Partially Owned Properties | (680) | (788) |
Net income attributable to controlling interests | 219,868 | 149,153 |
ALLOCATION OF NET INCOME: | ||
Preference Units | 773 | 773 |
General Partner | 211,036 | 142,969 |
Limited Partners | 8,059 | 5,411 |
Net income available to Units | $ 219,095 | $ 148,380 |
Earnings per Unit – basic: | ||
Net income available to Units | $ 0.57 | $ 0.39 |
Weighted average Units outstanding | 380,663 | 379,504 |
Earnings per Unit – diluted: | ||
Net income available to Units | $ 0.57 | $ 0.39 |
Weighted average Units outstanding | 383,018 | 382,280 |
Distributions declared per Unit outstanding | $ 0.54 | $ 0.50375 |
CONSOLIDATED STATEMENTS OF CO10
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF ERP OPERATING LIMITED PARTNERSHIP (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Comprehensive income: | ||
Net income | $ 220,548 | $ 149,941 |
Other comprehensive income (loss) – derivative instruments: | ||
Unrealized holding gains (losses) arising during the period | 6,087 | |
Losses reclassified into earnings from other comprehensive income | 4,791 | 4,583 |
Other comprehensive income (loss) | 10,878 | 4,583 |
Comprehensive income | 231,426 | 154,524 |
Comprehensive (income) attributable to Noncontrolling Interests – Partially Owned Properties | (9,139) | (6,366) |
Comprehensive income attributable to controlling interests | 222,287 | 148,158 |
ERPOP [Member] | ||
Comprehensive income: | ||
Net income | 220,548 | 149,941 |
Other comprehensive income (loss) – derivative instruments: | ||
Unrealized holding gains (losses) arising during the period | 6,087 | |
Losses reclassified into earnings from other comprehensive income | 4,791 | 4,583 |
Other comprehensive income (loss) | 10,878 | 4,583 |
Comprehensive income | 231,426 | 154,524 |
Comprehensive (income) attributable to Noncontrolling Interests – Partially Owned Properties | (680) | (788) |
Comprehensive income attributable to controlling interests | $ 230,746 | $ 153,736 |
CONSOLIDATED STATEMENTS OF CA11
CONSOLIDATED STATEMENTS OF CASH FLOWS OF ERP OPERATING LIMITED PARTNERSHIP (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 220,548 | $ 149,941 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 196,309 | 178,968 |
Amortization of deferred financing costs | 3,679 | 2,296 |
Amortization of above/below market lease intangibles | 1,098 | 856 |
Amortization of discounts and premiums on debt | 1,532 | 1,130 |
Amortization of deferred settlements on derivative instruments | 4,788 | 4,580 |
Write-off of pursuit costs | 931 | 715 |
(Income) loss from investments in unconsolidated entities | 977 | 1,073 |
Distributions from unconsolidated entities – return on capital | 615 | 648 |
Net (gain) loss on sales of real estate properties | (142,213) | (36,707) |
Net (gain) loss on sales of land parcels | (19,193) | |
Net (gain) loss on debt extinguishment | 22,110 | 11,698 |
Compensation paid with Company Common Shares | 10,278 | 7,873 |
Changes in assets and liabilities: | ||
(Increase) decrease in other assets | (15,396) | (11,059) |
Increase (decrease) in accounts payable and accrued expenses | 48,997 | 42,472 |
Increase (decrease) in accrued interest payable | 11,718 | 13,437 |
Increase (decrease) in other liabilities | (4,692) | (45,324) |
Increase (decrease) in security deposits | (261) | 500 |
Net cash provided by operating activities | 361,018 | 303,904 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Investment in real estate – acquisitions | (54,134) | |
Investment in real estate – development/other | (40,813) | (103,291) |
Capital expenditures to real estate | (36,747) | (39,297) |
Non-real estate capital additions | (1,191) | (289) |
Interest capitalized for real estate under development | (1,688) | (8,238) |
Proceeds from disposition of real estate, net | 284,670 | 80,064 |
Investments in unconsolidated entities | (2,799) | (1,704) |
Distributions from unconsolidated entities – return of capital | 113 | |
Net cash provided by (used for) investing activities | 147,298 | (72,642) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Debt financing costs | (4,345) | |
Mortgage notes payable, net: | ||
Lump sum payoffs | (725,639) | (351,774) |
Scheduled principal repayments | (1,720) | (1,964) |
Notes, net: | ||
Proceeds | 497,010 | |
Line of credit and commercial paper: | ||
Line of credit proceeds | 415,000 | |
Line of credit repayments | (415,000) | |
Commercial paper proceeds | 1,107,561 | 1,310,188 |
Commercial paper repayments | (1,173,000) | (1,015,500) |
Proceeds from (payments on) settlement of derivative instruments | 1,638 | |
Proceeds from EQR’s Employee Share Purchase Plan (ESPP) | 1,681 | 1,574 |
Proceeds from exercise of EQR options | 1,600 | 3,142 |
Payment of offering costs | (26) | (21) |
Contributions – Noncontrolling Interests – Partially Owned Properties | 125 | 125 |
Contributions – Limited Partners | 1 | |
Distributions: | ||
OP Units – General Partner | (185,484) | (184,302) |
Preference Units | (773) | (1,545) |
OP Units – Limited Partners | (6,666) | (7,218) |
Noncontrolling Interests – Partially Owned Properties | (4,220) | (5,134) |
Net cash provided by (used for) financing activities | (514,367) | (264,127) |
Net increase (decrease) in cash and cash equivalents and restricted deposits | (6,051) | (32,865) |
Cash and cash equivalents and restricted deposits, beginning of period | 100,762 | 219,088 |
Cash and cash equivalents and restricted deposits, end of period | 94,711 | 186,223 |
Cash and cash equivalents | 44,453 | 42,139 |
Restricted deposits | 50,258 | 144,084 |
SUPPLEMENTAL INFORMATION: | ||
Cash paid for interest, net of amounts capitalized | 96,404 | 86,668 |
Net cash paid for income and other taxes | 462 | 468 |
Amortization of deferred financing costs: | ||
Other assets | 603 | 603 |
Mortgage notes payable, net | 2,084 | 794 |
Notes, net | 992 | 899 |
Amortization of discounts and premiums on debt: | ||
Mortgage notes payable, net | 897 | 525 |
Notes, net | 635 | 605 |
Amortization of deferred settlements on derivative instruments: | ||
Other liabilities | (3) | (3) |
Accumulated other comprehensive income | 4,791 | 4,583 |
Write-off of pursuit costs: | ||
Investment in real estate, net | 931 | 685 |
Other assets | 10 | |
Accounts payable and accrued expenses | 20 | |
(Income) loss from investments in unconsolidated entities: | ||
Investments in unconsolidated entities | 627 | 701 |
Other liabilities | 350 | 372 |
Realized/unrealized (gain) loss on derivative instruments: | ||
Other assets | (9,132) | 1,106 |
Notes, net | (2,289) | (1,106) |
Other liabilities | 5,334 | |
Accumulated other comprehensive income | 6,087 | |
Investments in unconsolidated entities: | ||
Investments in unconsolidated entities | (2,079) | (804) |
Other liabilities | (720) | (900) |
Debt financing costs: | ||
Notes, net | (4,345) | |
Proceeds from (payments on) settlement of derivative instruments: | ||
Other assets | 1,638 | |
Mortgage Notes Payable, Net [Member] | ||
Mortgage notes payable, net: | ||
Net gain (loss) on debt extinguishment | (22,110) | (11,698) |
ERPOP [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | 220,548 | 149,941 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 196,309 | 178,968 |
Amortization of deferred financing costs | 3,679 | 2,296 |
Amortization of above/below market lease intangibles | 1,098 | 856 |
Amortization of discounts and premiums on debt | 1,532 | 1,130 |
Amortization of deferred settlements on derivative instruments | 4,788 | 4,580 |
Write-off of pursuit costs | 931 | 715 |
(Income) loss from investments in unconsolidated entities | 977 | 1,073 |
Distributions from unconsolidated entities – return on capital | 615 | 648 |
Net (gain) loss on sales of real estate properties | (142,213) | (36,707) |
Net (gain) loss on sales of land parcels | (19,193) | |
Net (gain) loss on debt extinguishment | 22,110 | 11,698 |
Compensation paid with Company Common Shares | 10,278 | 7,873 |
Changes in assets and liabilities: | ||
(Increase) decrease in other assets | (15,396) | (11,059) |
Increase (decrease) in accounts payable and accrued expenses | 48,997 | 42,472 |
Increase (decrease) in accrued interest payable | 11,718 | 13,437 |
Increase (decrease) in other liabilities | (4,692) | (45,324) |
Increase (decrease) in security deposits | (261) | 500 |
Net cash provided by operating activities | 361,018 | 303,904 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Investment in real estate – acquisitions | (54,134) | |
Investment in real estate – development/other | (40,813) | (103,291) |
Capital expenditures to real estate | (36,747) | (39,297) |
Non-real estate capital additions | (1,191) | (289) |
Interest capitalized for real estate under development | (1,688) | (8,238) |
Proceeds from disposition of real estate, net | 284,670 | 80,064 |
Investments in unconsolidated entities | (2,799) | (1,704) |
Distributions from unconsolidated entities – return of capital | 113 | |
Net cash provided by (used for) investing activities | 147,298 | (72,642) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Debt financing costs | (4,345) | |
Mortgage notes payable, net: | ||
Lump sum payoffs | (725,639) | (351,774) |
Scheduled principal repayments | (1,720) | (1,964) |
Notes, net: | ||
Proceeds | 497,010 | |
Line of credit and commercial paper: | ||
Line of credit proceeds | 415,000 | |
Line of credit repayments | (415,000) | |
Commercial paper proceeds | 1,107,561 | 1,310,188 |
Commercial paper repayments | (1,173,000) | (1,015,500) |
Proceeds from (payments on) settlement of derivative instruments | 1,638 | |
Proceeds from EQR’s Employee Share Purchase Plan (ESPP) | 1,681 | 1,574 |
Proceeds from exercise of EQR options | 1,600 | 3,142 |
Payment of offering costs | (26) | (21) |
Contributions – Noncontrolling Interests – Partially Owned Properties | 125 | 125 |
Contributions – Limited Partners | 1 | |
Distributions: | ||
OP Units – General Partner | (185,484) | (184,302) |
Preference Units | (773) | (1,545) |
OP Units – Limited Partners | (6,666) | (7,218) |
Noncontrolling Interests – Partially Owned Properties | (4,220) | (5,134) |
Net cash provided by (used for) financing activities | (514,367) | (264,127) |
Net increase (decrease) in cash and cash equivalents and restricted deposits | (6,051) | (32,865) |
Cash and cash equivalents and restricted deposits, beginning of period | 100,762 | 219,088 |
Cash and cash equivalents and restricted deposits, end of period | 94,711 | 186,223 |
Cash and cash equivalents | 44,453 | 42,139 |
Restricted deposits | 50,258 | 144,084 |
SUPPLEMENTAL INFORMATION: | ||
Cash paid for interest, net of amounts capitalized | 96,404 | 86,668 |
Net cash paid for income and other taxes | 462 | 468 |
Amortization of deferred financing costs: | ||
Other assets | 603 | 603 |
Mortgage notes payable, net | 2,084 | 794 |
Notes, net | 992 | 899 |
Amortization of discounts and premiums on debt: | ||
Mortgage notes payable, net | 897 | 525 |
Notes, net | 635 | 605 |
Amortization of deferred settlements on derivative instruments: | ||
Other liabilities | (3) | (3) |
Accumulated other comprehensive income | 4,791 | 4,583 |
Write-off of pursuit costs: | ||
Investment in real estate, net | 931 | 685 |
Other assets | 10 | |
Accounts payable and accrued expenses | 20 | |
(Income) loss from investments in unconsolidated entities: | ||
Investments in unconsolidated entities | 627 | 701 |
Other liabilities | 350 | 372 |
Realized/unrealized (gain) loss on derivative instruments: | ||
Other assets | (9,132) | 1,106 |
Notes, net | (2,289) | (1,106) |
Other liabilities | 5,334 | |
Accumulated other comprehensive income | 6,087 | |
Investments in unconsolidated entities: | ||
Investments in unconsolidated entities | (2,079) | (804) |
Other liabilities | (720) | (900) |
Debt financing costs: | ||
Notes, net | (4,345) | |
Proceeds from (payments on) settlement of derivative instruments: | ||
Other assets | 1,638 | |
ERPOP [Member] | Mortgage Notes Payable, Net [Member] | ||
Mortgage notes payable, net: | ||
Net gain (loss) on debt extinguishment | $ (22,110) | $ (11,698) |
CONSOLIDATED STATEMENT OF CHA12
CONSOLIDATED STATEMENT OF CHANGES IN CAPITAL OF ERP OPERATING LIMITED PARTNERSHIP (Unaudited) - 3 months ended Mar. 31, 2018 - USD ($) $ in Thousands | Total | ERPOP [Member] | PREFERRED SHARESERPOP [Member] | General Partner [Member]ERPOP [Member] | Limited Partner [Member]ERPOP [Member] | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)ERPOP [Member] | PARTIALLY OWNED PROPERTIES [Member]ERPOP [Member] |
Balance, beginning of year at Dec. 31, 2017 | $ 37,280 | $ 10,293,796 | $ 226,691 | $ (88,612) | |||
Balance, beginning of year at Dec. 31, 2017 | $ 4,708 | ||||||
OP Unit Issuance: | |||||||
Conversion of OP Units held by Limited Partners into OP Units held by General Partner | 134 | (134) | |||||
Exercise of EQR share options | 1,600 | ||||||
EQR's Employee Share Purchase Plan (ESPP) | 1,681 | ||||||
Share-based employee compensation expense: | |||||||
EQR restricted shares | 2,623 | ||||||
EQR share options | 7,338 | ||||||
EQR ESPP discount | 297 | ||||||
Net income available to Units General Partner | $ 211,036 | 211,036 | |||||
OP Units General Partner distributions | (198,928) | ||||||
Offering costs | (26) | ||||||
Supplemental Executive Retirement Plan (SERP) | 83 | ||||||
Change in market value of Redeemable Limited Partners | 12,831 | ||||||
Adjustment for Limited Partners ownership in Operating Partnership | (2,839) | 2,839 | |||||
LIMITED PARTNERS | |||||||
Issuance of restricted units to Limited Partners | 1 | ||||||
Conversion of OP Units held by Limited Partners into OP Units held by General Partner | 134 | (134) | |||||
Equity compensation associated with Units Limited Partners | 4,803 | ||||||
Net income available to Units Limited Partners | 8,059 | 8,059 | |||||
Units Limited Partners distributions | (7,188) | ||||||
Change in carrying value of Redeemable Limited Partners | (443) | ||||||
Adjustment for Limited Partners ownership in Operating Partnership | (2,839) | 2,839 | |||||
Issuance of restricted units to Noncontrolling Interests | 1 | ||||||
Accumulated other comprehensive income (loss) – derivative instruments: | |||||||
Unrealized holding gains (losses) arising during the period | $ 6,087 | 6,087 | 6,087 | ||||
Losses reclassified into earnings from other comprehensive income | (4,791) | (4,791) | 4,791 | ||||
NONCONTROLLING INTERESTS PARTIALLY OWNED PROPERTIES | |||||||
Net income attributable to Noncontrolling Interests | $ 220,548 | $ 220,548 | 680 | ||||
Contributions by Noncontrolling Interests | 125 | ||||||
Distributions to Noncontrolling Interests | (4,220) | ||||||
Balance, end of period at Mar. 31, 2018 | $ 37,280 | $ 10,329,626 | $ 234,628 | $ (77,734) | |||
Balance, end of period at Mar. 31, 2018 | $ 1,293 |
Business
Business | 3 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business | 1. Business Equity Residential (“EQR”), a Maryland real estate investment trust (“REIT”) formed in March 1993, is an S&P 500 company focused on the acquisition, development and management of rental apartment properties in urban and high-density suburban coastal gateway markets. ERP Operating Limited Partnership (“ERPOP”), an Illinois limited partnership, was formed in May 1993 to conduct the multifamily residential property business of Equity Residential. EQR has elected to be REIT. ERPOP. ERPOP. EQR is the general partner of, and as of March 31, 2018 owned an approximate 96.3% ownership interest in, ERPOP. All of the Company’s property ownership, development and related business operations are conducted through the Operating Partnership ERPOP. ERPOP, As of March 31, 2018, the Company, directly or indirectly through investments in title holding entities, owned all or a portion of 303 properties located in 10 states and the District of Columbia consisting of 78,399 apartment units. The ownership breakdown includes (table does not include various uncompleted development properties): Properties Apartment Units Wholly Owned Properties 282 73,160 Master-Leased Properties – Consolidated 2 759 Partially Owned Properties – Consolidated 17 3,535 Partially Owned Properties – Unconsolidated 2 945 303 78,399 Note: Effective February 1, 2018, the Company took over management of one of its Master-Leased properties containing 94 apartment units located in Boston. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Summary Of Significant Accounting Policies [Abstract] | |
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. These reclassifications did not have an impact on net income previously reported. Operating results for the quarter ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. In preparation of the Company’s 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 sheets at December 31, 2017 have been derived from the audited financial statements at that date but do 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 Company’s and the Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2017. Income and Other Taxes Due to the structure of EQR 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. In addition, ERPOP generally is not liable for federal income taxes as the partners recognize their proportionate share of income or loss in their tax returns; therefore no provision for federal income taxes has been made at the ERPOP 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 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 changes in tax rates on deferred tax assets and liabilities are recognized in earnings in the period enacted. The Company’s deferred tax assets were generally the result of tax affected suspended interest deductions, net operating losses, differing depreciable lives on capitalized assets and the timing of expense recognition for certain accrued liabilities. In December 2017, the President signed into law H.R. 1, informally titled the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act is not expected to have a material impact on our REIT or subsidiary entities, our ability to continue to qualify as a REIT or on our results of operations. However, the complete impact of the Tax Act is not yet fully known and there can be no assurances that it will have a neutral or favorable impact. Recently Issued Accounting Pronouncements In • Lessors – Leases will be accounted for using an approach that is substantially equivalent to existing guidance for operating, sales-type and financing leases, but aligned with the new revenue recognition standard. Lessors will be required to allocate lease payments to separate lease and non-lease components of each lease agreement, with the non-lease components evaluated under the new revenue recognition standard. • Lessees – Leases will be accounted for using a dual approach, classifying leases as either operating or finance based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized on a straight-line basis over the term of the lease (for operating leases) or based on an effective interest method with a front-loaded expense recognition (for finance leases). A lessee is also required to record a right-of-use asset and a lease liability on its balance sheet for all leases with a term of greater than 12 months regardless of their classification as operating or finance leases. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. The new standard will be effective for the Company beginning on January 1, 2019, with early adoption permitted, though the Company currently anticipates adopting the new standard on the effective date. The new standard must be adopted using a modified retrospective method, which requires application of the new guidance at the beginning of the earliest comparative period presented and provides for certain practical expedients, which the Company currently anticipates electing. The Company anticipates that its residential and retail/commercial leases where it is the lessor will continue to be accounted for as operating leases under the new standard. Therefore, the Company does not currently anticipate significant changes in the accounting for its lease revenues. The Company is also the lessee under various corporate office and ground leases, which it will be required to recognize right of use assets and related lease liabilities on its consolidated balance sheets upon adoption. The Company currently anticipates that its corporate office leases where it is the lessee will continue to be accounted for as operating leases under the new standard. Based on its anticipated election of the practical expedients, the Company would not be required to reassess the classification of existing ground leases and therefore these leases would continue to be accounted for as operating leases. However, in the event we modify existing ground leases and/or enter into new ground leases after adoption of the new standard, such leases will likely be classified as finance leases. The Company will continue to evaluate the impact of adopting the new leases standard on its consolidated results of operations and financial position. In June 2016, the FASB In August 2017, the FASB issued a final standard which makes changes to the hedge accounting model to enable entities to better portray their risk management activities in the financial statements. The new standard expands an entity’s ability to hedge nonfinancial and financial risk components, reduces complexity in fair value hedges of interest rate risk and eases certain documentation and assessment requirements. The new standard also eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of any hedging instrument to be presented in the same income statement line as the hedged instrument. The new standard will be effective for the Company beginning on January 1, 2019 and early adoption is permitted. The Company is currently evaluating the impact of adopting the new standard on its consolidated results of operations and financial position. Recently Adopted Accounting Pronouncements In FASB Revenue from Contracts with Customers any, For the remaining approximately 6% of rental income that is subject to the new revenue recognition standard, the Company’s disaggregated revenue streams are disclosed in the table below for the quarter ended March 31, 2018. These revenue streams have the same timing and pattern of revenue recognition across our reportable segments, with consistent allocations between the leasing and revenue recognition standards. The revenue streams and percentages are comparable with the percentage of rental income for the quarter ended March 31, 2017. The following table presents the disaggregation of revenue streams of our rental income for the quarter ended March 31, 2018 (amounts in thousands): Quarter Ended March 31, 2018 Revenue Stream Applicable Standard Amount of Rental Income Percentage of Rental Income Leasing revenue Leases $ 592,813 93.7 % Utility recoveries (“RUBS”) Revenue Recognition 15,375 2.4 % Parking revenue Revenue Recognition 7,797 1.2 % Other revenue Revenue Recognition 16,846 2.7 % Rental income $ 632,831 100.0 % Additionally, as part of the new revenue recognition standard, the FASB issued amendments related to partial sales of real estate (see further discussion below). Adoption of the new partial sales standard did not result in a change of accounting for the Company related to its disposition process. We concluded that the Company’s typical dispositions will continue to meet the criteria for sale and associated profit recognition under both new standards. In FASB In FASB • Cash payments related to debt prepayments or extinguishment costs are to be classified within financing • The portion of the cash payment made to settle a zero-coupon bond or a bond with an insignificant cash coupon attributable to accreted interest related to a debt discount is to be classified as a cash outflow within operating activities, and the portion attributable to the principal is to be classified within financing • Insurance settlement proceeds are to be classified based on the nature of the • Companies must elect to classify distributions received from equity method investees using either a cumulative earnings approach or a look-through approach and the election must be disclosed; • Restricted Total The While overall cash flows did not change, there are changes between cash flow classifications due primarily to the debt prepayment penalties that the Company has incurred in the comparative period. As of March 31, 2017, the following cash flows were reclassified (amounts in thousands): Quarter Ended March 31, 2017 As Originally Presented Reclassification Adjustments As Presented Herein Cash Flows from Operating Activities: Amortization of discounts and premiums on debt $ 1,637 $ (507 ) $ 1,130 Net (gain) loss on debt extinguishment $ — $ 11,698 $ 11,698 (Increase) decrease in deposits - restricted $ 256 $ (256 ) $ — (Increase) decrease in mortgage deposits $ 315 $ (315 ) $ — Net cash provided by operating activities $ 293,284 $ 10,620 $ 303,904 Cash Flows from Investing Activities: (Increase) decrease in deposits on real estate acquisitions and investments, net $ 637 $ (637 ) $ — (Increase) decrease in mortgage deposits $ (1,030 ) $ 1,030 $ — Net cash provided by (used for) investing activities $ (73,035 ) $ 393 $ (72,642 ) Cash Flows from Financing Activities: Mortgage deposits $ (2,381 ) $ 2,381 $ — Mortgage notes payable, net: Net gain (loss) on debt extinguishment $ — $ (11,698 ) $ (11,698 ) Line of credit and commercial paper: Commercial paper proceeds $ 1,309,681 $ 507 $ 1,310,188 Net cash (used for) financing activities $ (255,317 ) $ (8,810 ) $ (264,127 ) Cash and cash equivalents, beginning of period $ 77,207 (adjustments for restricted deposits, beginning of period) $ 141,881 Cash and cash equivalents and restricted deposits, beginning of period $ 219,088 Cash and cash equivalents, end of period $ 42,139 (adjustments for restricted deposits, end of period) $ 144,084 Cash and cash equivalents and restricted deposits, end of period $ 186,223 In FASB In FASB clarifies the accounting treatment for partial sales of nonfinancial assets (i.e. real estate). The standard clarifies that partial sales transactions include contributions of nonfinancial assets to a joint venture or other noncontrolled investee. Companies must recognize a full gain or loss on transfers of nonfinancial assets to equity method investees. The standard requires companies to derecognize distinct nonfinancial assets or distinct in substance nonfinancial assets in partial sale transactions when it does not have a controlling financial interest in the legal entity that holds the asset and transfers control of the asset. Once the distinct nonfinancial asset is transferred, the company is required to measure any non-controlling interest it receives or retains at fair value and recognize a full gain or loss on the transaction. If a company transfers ownership interests in a consolidated subsidiary and continues to maintain a controlling financial interest, the company does not derecognize the assets or liabilities, and accounts for the transaction as an equity transaction and no gain or loss is recognized. The Company has not had a partial sale of nonfinancial assets in the current or comparative periods, therefore the adoption of this standard did not have a material impact on its consolidated results of operations and financial position. Other The Company is the controlling partner in various consolidated partnerships owning 17 properties consisting of 3,535 apartment units having a noncontrolling interest book value of $1.3 million at March 31, 2018. The Company is required to make certain disclosures regarding noncontrolling interests in consolidated limited-life subsidiaries. Of the consolidated entities described above, the Company is the controlling partner in limited-life partnerships owning four properties having a noncontrolling interest deficit balance of $8.7 million. These four partnership agreements contain provisions that require the partnerships to be liquidated through the sale of their assets upon reaching a date specified in each respective partnership agreement. The Company, as controlling partner, has an obligation to cause the property owning partnerships to distribute the proceeds of liquidation to the Noncontrolling Interests in these Partially Owned Properties only to the extent that the net proceeds received by the partnerships from the sale of their assets warrant a distribution based on the partnership agreements. As of March 31, 2018, the Company estimates the value of Noncontrolling Interest distributions for these four properties would have been approximately $66.3 million (“Settlement Value”) had the partnerships been liquidated. This Settlement Value is based on estimated third party consideration realized by the partnerships upon disposition of the four Partially Owned Properties and is net of all other assets and liabilities, including yield maintenance on the mortgages encumbering the properties, that would have been due on had those mortgages been prepaid. Due to, among other things, the inherent uncertainty in the sale of real estate assets, the amount of any potential distribution to the Noncontrolling Interests in the Company’s Partially Owned Properties is subject to change. To the extent that the partnerships’ underlying assets are worth less than the underlying liabilities, the Company has no obligation to remit any consideration to the Noncontrolling Interests in these Partially Owned Properties |
Equity, Capital and Other Inter
Equity, Capital and Other Interests | 3 Months Ended |
Mar. 31, 2018 | |
Equity Capital And Other Interests [Abstract] | |
Equity, Capital and Other Interests | 3. Equity, Capital and Other Equity and Redeemable Noncontrolling Interests of Equity Residential The following tables present the changes in the Company’s issued and outstanding Common Shares and “Units” (which includes OP Units and restricted units) for the quarter ended March 31, 2018: 2018 Common Shares Common Shares outstanding at January 1, 368,018,082 Common Shares Issued: Conversion of OP Units 5,000 Exercise of share options 45,391 Employee Share Purchase Plan (ESPP) 35,177 Restricted share grants, net 108,261 Common Shares outstanding at March 31, 368,211,911 Units Units outstanding at January 1, 13,768,438 Restricted unit grants, net 263,048 Conversion of OP Units to Common Shares (5,000 ) Units outstanding at March 31, 14,026,486 Total Common Shares and Units outstanding at March 31, 382,238,397 Units Ownership Interest in Operating Partnership 3.7 % 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 restricted units, are collectively referred to as the “Noncontrolling Interests – Operating Partnership”. Subject to certain exceptions (including the “book-up” requirements of restricted units), the Noncontrolling Interests – Operating Partnership may exchange their Units with EQR for Common Shares on a one-for-one basis. The carrying value of the Noncontrolling Interests – Operating Partnership (including redeemable interests) is allocated based on the number of Noncontrolling Interests – Operating Partnership Units in total in proportion to the number of Noncontrolling Interests – Operating Partnership Units in total plus the number of Common Shares. Net income is allocated to the Noncontrolling Interests – Operating Partnership based on the weighted average ownership percentage during the period. The Operating Partnership has the right but not the obligation to make a cash payment instead of issuing Common Shares to any and all holders of Noncontrolling Interests – Operating Partnership Units requesting an exchange of their OP Units with EQR. Once the Operating Partnership elects not to redeem the Noncontrolling Interests – Operating Partnership Units for cash, EQR is obligated to deliver Common Shares to the exchanging holder of the Noncontrolling Interests – Operating Partnership Units. The law, Instruments that require settlement in registered shares cannot be classified in permanent equity as it is not always completely within an issuer’s control to deliver registered shares. Therefore, settlement in cash is assumed and that responsibility for settlement in cash is deemed to fall to the Operating Partnership as the primary source of cash for EQR, resulting in presentation in the mezzanine section of the balance sheet. The Redeemable Noncontrolling Interests – Operating Partnership are adjusted to the greater of carrying value or fair market value based on the Common Share price of EQR at the end of each respective reporting period. EQR has the ability to deliver unregistered Common Shares for the remaining portion of the Noncontrolling Interests – Operating Partnership Units that are classified in permanent equity at March 31, 2018 and December 31, 2017. The The 2018 Balance at January 1, $ 366,955 Change in market value (12,831 ) Change in carrying value 443 Balance at March 31, $ 354,567 Net proceeds from EQR Common Share and Preferred Share (see definition below) offerings are contributed by EQR to ERPOP. In return for those contributions, EQR receives a number of OP Units in ERPOP equal to the number of Common Shares it has issued in the equity offering (or in the case of a preferred equity offering, a number of preference units in ERPOP equal in number and having the same terms as the Preferred Shares issued in the equity offering). As a result, the net offering proceeds from Common Shares and Preferred Shares are allocated between shareholders’ equity and Noncontrolling Interests – Operating Partnership to account for the change in their respective percentage ownership of the underlying equity of ERPOP. The The Amounts in thousands Annual Call Dividend Per March 31, December 31, Date (1) Share (2) 2018 2017 Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized: 8.29% Series K Cumulative Redeemable Preferred; liquidation value $50 per share; 745,600 shares issued and outstanding as of March 31, 2018 and December 31, 2017 12/10/26 $ 4.145 $ 37,280 $ 37,280 $ 37,280 $ 37,280 (1) On or after the call date, redeemable preferred shares may be redeemed for cash at the option of the Company, in whole or in part, at a redemption price equal to the liquidation price per share, plus accrued and unpaid distributions, if any. (2) Dividends on Preferred Shares are payable quarterly. Capital and Redeemable Limited Partners of ERP Operating Limited Partnership The following tables present the changes in the Operating Partnership’s issued and outstanding Units and in the limited partners’ Units for the quarter ended March 31, 2018: 2018 General and Limited Partner Units General and Limited Partner Units outstanding at January 1, 381,786,520 Issued to General Partner: Exercise of EQR share options 45,391 EQR’s Employee Share Purchase Plan (ESPP) 35,177 EQR’s restricted share grants, net 108,261 Issued to Limited Partners: Restricted unit grants, net 263,048 General and Limited Partner Units outstanding at March 31, 382,238,397 Limited Partner Units Limited Partner Units outstanding at January 1, 13,768,438 Limited Partner restricted unit grants, net 263,048 Conversion of Limited Partner OP Units to EQR Common Shares (5,000 ) Limited Partner Units outstanding at March 31, 14,026,486 Limited Partner Units Ownership Interest in Operating Partnership 3.7 % The Limited Partners of the Operating Partnership as of March 31, 2018 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 restricted units. Subject to certain exceptions (including the “book-up” requirements of restricted units), Limited Partners may exchange their Units with EQR for 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. The Operating Partnership has the right but not the obligation to make a cash payment instead of issuing Common Shares to any and all holders of Limited Partner Units requesting an exchange of their OP Units with EQR. Once the Operating Partnership elects not to redeem the Limited Partner Units for cash, EQR is obligated to deliver Common Shares to the exchanging limited partner. The Limited Partner Units are classified as either mezzanine equity or permanent equity. If EQR is required, either by contract or securities law, to deliver registered Common Shares, such Limited Partner Units are differentiated and referred to as “Redeemable Limited Partner Units”. Instruments that require settlement in registered shares cannot be classified in permanent equity as it is not always completely within an issuer’s control to deliver registered shares. Therefore, settlement in cash is assumed and that responsibility for settlement in cash is deemed to fall to the Operating Partnership as the primary source of cash for EQR, resulting in presentation in the mezzanine section of the balance sheet. The Redeemable Limited Partner Units are adjusted to the greater of carrying value or fair market value based on the Common Share price of EQR at the end of each respective reporting period. EQR has the ability to deliver unregistered Common Shares for the remaining portion of the Limited Partner Units that are classified in permanent equity at March 31, 2018 and . The carrying value of the Redeemable Limited Partner Units is allocated based on the number of Redeemable Limited Partner The following table presents the changes in the redemption value of the Redeemable Limited Partners for the quarter ended March 31, 2018 (amounts in thousands): 2018 Balance at January 1, $ 366,955 Change in market value (12,831 ) Change in carrying value 443 Balance at March 31, $ 354,567 EQR contributes all net proceeds from its various equity offerings (including proceeds from exercise of options for Common ERPOP. The December 31, 2017 Amounts in thousands Annual Call Dividend Per March 31, December 31, Date (1) Unit (2) 2018 2017 Preference Units: 8.29% Series K Cumulative Redeemable Preference Units; liquidation value $50 per unit; 745,600 units issued and outstanding as of March 31, 2018 and December 31, 2017 12/10/26 $ 4.145 $ 37,280 $ 37,280 $ 37,280 $ 37,280 (1) On or after the call date, redeemable preference units 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 Company Preferred Shares. (2) Dividends on Preference Units are payable quarterly. Other In September 2009, the Company announced the establishment of an At-The-Market (“ATM”) The Company may repurchase up to 13.0 million Common Shares under its share repurchase program. No shares were repurchased during the quarter ended March 31, 2018. As of March 31, 2018, EQR has remaining authorization to repurchase up to 13.0 million of its shares under the repurchase program. |
Real Estate and Lease Intangibl
Real Estate and Lease Intangibles | 3 Months Ended |
Mar. 31, 2018 | |
Real Estate [Abstract] | |
Real Estate and Lease Intangibles | 4. Real Estate and Lease Intangibles The following table summarizes the carrying amounts for the Company’s investment in real estate (at cost) as of March 31, 2018 and December 31, 2017 (amounts in thousands): March 31, 2018 December 31, 2017 Land $ 5,960,804 $ 5,996,024 Depreciable property: Buildings and improvements 17,748,897 17,743,042 Furniture, fixtures and equipment 1,575,934 1,548,961 In-Place lease intangibles 473,522 476,359 Projects under development: Land 30,605 43,226 Construction-in-progress 66,004 120,321 Land held for development: Land 62,538 62,538 Construction-in-progress 40,313 36,425 Investment in real estate 25,958,617 26,026,896 Accumulated depreciation (6,173,047 ) (6,040,378 ) Investment in real estate, net $ 19,785,570 $ 19,986,518 The following table summarizes the carrying amounts for the Company’s above and below market ground and retail lease intangibles as of March 31, 2018 and December 31, 2017 (amounts in thousands): Description Balance Sheet Location March 31, 2018 December 31, 2017 Assets Ground lease intangibles – below market Other Assets $ 191,918 $ 191,918 Retail lease intangibles – above market Other Assets 1,260 1,260 Lease intangible assets 193,178 193,178 Accumulated amortization (23,562 ) (22,434 ) Lease intangible assets, net $ 169,616 $ 170,744 Liabilities Ground lease intangibles – above market Other Liabilities $ 2,400 $ 2,400 Retail lease intangibles – below market Other Liabilities 5,270 5,270 Lease intangible liabilities 7,670 7,670 Accumulated amortization (5,173 ) (5,143 ) Lease intangible liabilities, net $ 2,497 $ 2,527 The following table provides a summary of the effect of the amortization for above and below market ground and retail lease intangibles on Quarter Ended March 31, Description Income Statement Location 2018 2017 Ground lease intangible amortization Property and Maintenance $ (1,116 ) $ (1,080 ) Retail lease intangible amortization Rental Income 18 224 Total amortization of above/below market lease intangibles $ (1,098 ) $ (856 ) The following table provides a summary of the aggregate amortization for above and below market ground and retail lease intangibles for each of the next five years (amounts in thousands): Remaining 2018 2019 2020 2021 2022 2023 Ground lease intangibles $ (3,347 ) $ (4,463 ) $ (4,463 ) $ (4,463 ) $ (4,463 ) $ (4,463 ) Retail lease intangibles 53 71 71 71 27 19 Total $ (3,294 ) $ (4,392 ) $ (4,392 ) $ (4,392 ) $ (4,436 ) $ (4,444 ) During the quarter ended March 31, 2018, the Company acquired the entire equity interest in the following from unaffiliated parties (purchase price in thousands): Properties Apartment Units Purchase Price Rental Properties – Consolidated (1) 1 117 $ 53,700 Total 1 117 $ 53,700 (1) Purchase price includes an allocation of approximately $14.8 million to land and $39.3 million to depreciable property (inclusive of capitalized closing costs). During the quarter ended March 31, 2018 , the Company disposed of the following to unaffiliated parties (sales price in thousands): Properties Apartment Units Sales Price Rental Properties – Consolidated 4 786 $ 290,020 Total 4 786 $ 290,020 The Company recognized a net gain on sales of real estate properties of approximately $142.2 million on the above sales. |
Commitments to Acquire_Dispose
Commitments to Acquire/Dispose of Real Estate | 3 Months Ended |
Mar. 31, 2018 | |
Commitments To Acquire Dispose Of Real Estate [Abstract] | |
Commitments to Acquire/Dispose of Real Estate | 5. Commitments to Acquire/Dispose of Real The Company has not entered into any separate agreements to acquire rental properties or land parcels as of the date of this filing. The Company has entered into a separate agreement to dispose of the following (sales price in thousands): Properties Apartment Units Sales Price Land Parcels (one) — — $ 2,700 Total — — $ 2,700 The closing of this pending transaction is subject to certain conditions and restrictions, therefore, there can be no assurance that this transaction will be consummated or that the final terms will not differ in material respects from those summarized above. |
Investments in Partially Owned
Investments in Partially Owned Entities | 3 Months Ended |
Mar. 31, 2018 | |
Investments In Partially Owned Entities [Abstract] | |
Investments in Partially Owned Entities | 6. Investments in Partially Owned The March 31, 2018 Consolidated Unconsolidated (VIE) (Non-VIE) (VIE) (1) Total Total properties 17 2 — 2 Total apartment units 3,535 945 — 945 Balance sheet information at 3/31/2018 (at 100%): ASSETS Investment in real estate $ 875,187 $ 236,854 $ 172,995 $ 409,849 Accumulated depreciation (235,426 ) (46,190 ) (51,420 ) (97,610 ) Investment in real estate, net 639,761 190,664 121,575 312,239 Cash and cash equivalents 13,061 6,587 225 6,812 Investments in unconsolidated entities 43,926 — — — Restricted deposits 381 258 — 258 Other assets 25,879 243 320 563 Total assets $ 723,008 $ 197,752 $ 122,120 $ 319,872 LIABILITIES AND EQUITY/CAPITAL Mortgage notes payable, net (2) $ 302,656 $ 145,424 $ — $ 145,424 Accounts payable & accrued expenses 3,344 1,361 115 1,476 Accrued interest payable 1,037 691 — 691 Other liabilities 3,683 261 15 276 Security deposits 2,470 525 — 525 Total liabilities 313,190 148,262 130 148,392 Noncontrolling Interests – Partially Owned Properties/Partners’ equity 1,293 51,079 84,038 135,117 Company equity/General and Limited Partners’ Capital 408,525 (1,589 ) 37,952 36,363 Total equity/capital 409,818 49,490 121,990 171,480 Total liabilities and equity/capital $ 723,008 $ 197,752 $ 122,120 $ 319,872 Consolidated Unconsolidated (VIE) (Non-VIE) (VIE) (1) Total Operating information for the quarter ended 3/31/2018 (at 100%): Operating revenue $ 26,447 $ 6,942 $ 1,258 $ 8,200 Operating expenses 6,637 2,268 581 2,849 Net operating income 19,810 4,674 677 5,351 Property management 955 199 19 218 General and administrative 17 — — — Depreciation 10,479 2,677 1,375 4,052 Operating income (loss) 8,359 1,798 (717 ) 1,081 Interest and other income 27 — — — Interest: Expense incurred, net (3,312 ) (2,072 ) — (2,072 ) Amortization of deferred financing costs (68 ) — — — Income (loss) before income and other taxes and income (loss) from investments in unconsolidated entities 5,006 (274 ) (717 ) (991 ) Income and other tax (expense) benefit (18 ) (13 ) — (13 ) Income (loss) from investments in unconsolidated entities (393 ) — — — Net income (loss) $ 4,595 $ (287 ) $ (717 ) $ (1,004 ) (1) Includes the Company’s unconsolidated interest in an entity that owns the land underlying our Wisconsin Place apartment property and owns and operates the parking facility. This entity is excluded from the property and apartment unit count. (2) All debt is non-recourse to the Company. Note: The above tables exclude EQR’s ownership interest in ERPOP, private equity fund investments, and the Company’s interests in unconsolidated joint ventures established in connection with the acquisition of certain real estate related assets from Archstone Enterprise LP (“Archstone”). Operating Properties The Company has various equity interests in certain limited partnerships owning 16 properties containing 3,103 apartment units. Each partnership owns a multifamily property. The Company is the general partner of these limited partnerships and is responsible for managing the operations and affairs of the partnerships as well as making all decisions regarding the businesses of the partnerships. The limited partners are not able to exercise substantive kick-out or participating rights. As a result, the partnerships qualify as variable interest entities (“VIEs”). The Company has a controlling financial interest in the VIEs and, thus, is the VIEs’ primary beneficiary. The Company has both the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance as well as the obligation to absorb losses or the right to receive benefits from the VIEs that could potentially be significant to the VIEs. As a result, the partnerships are required to be consolidated on the Company’s financial statements. The Company has a 75% equity interest in the Wisconsin Place joint venture. The project contains a mixed-use site located in Chevy Chase, Maryland consisting of residential, retail, office and accessory uses, including underground parking facilities. The joint venture owns the 432 unit residential component, but has no ownership interest in the retail and office components. At March 31, 2018, the residential component had a net book value of $159.4 million. The Company is the managing member and is responsible for conducting all administrative day-to-day matters and affairs of the joint venture as well as implementing all decisions with respect to the joint venture. The limited partner is not able to exercise substantive kick-out or participating rights. As a result, the joint venture qualifies as a VIE. The Company has a controlling financial interest in the VIE and, thus, is the VIE’s primary beneficiary. The Company has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance as well as the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. As a result, the entity that owns the residential component is required to be consolidated on the Company’s financial statements. The Wisconsin Place joint venture also retains an unconsolidated interest in an entity that owns the land underlying the entire project and owns and operates the parking facility. At March 31, 2018, the basis of this investment was $43.9 million. The joint venture, as a limited partner, does not have substantive kick-out or participating rights in the entity. As a result, the entity qualifies as a VIE. The joint venture does not have a controlling financial interest in the VIE and is not the VIE’s primary beneficiary. The joint venture does not have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance or the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. As a result, the entity that owns the land and owns and operates the parking facility is unconsolidated and recorded using the equity method of accounting. The Company has a 20% equity interest in each of the Nexus Sawgrass and Domain joint ventures under separate agreements. The Nexus Sawgrass joint venture owns a 501 unit apartment property located in Sunrise, Florida and the Company’s interest had a basis of $4.0 million at March 31, 2018. The Domain joint venture owns a 444 unit apartment property located in San Jose, California and the Company’s interest had a basis of $7.9 million at March 31, 2018. Both properties were funded with long-term, non-recourse secured loans from the partner. The mortgage loan on Nexus Sawgrass has a current unconsolidated outstanding balance of $48.6 million, bears interest at 5.60% and matures January 1, 2021. The mortgage loan on Domain has a current unconsolidated outstanding balance of $96.8 million, bears interest at 5.75% and matures January 1, 2022. While the Company is the managing member of both of the joint ventures, the joint venture partner has significant participating rights and has active involvement in the oversight of the operations. As a result, the entities do not qualify as VIEs. The Company alone does not have the power to direct the activities of the entities that most significantly impact the entities’ economic performance and as a result, the entities are unconsolidated and recorded using the equity method of accounting. Other As the sole general partner of ERPOP, EQR has exclusive control of ERPOP’s day-to-day management. The limited partners are not able to exercise substantive kick-out or participating rights. As a result, ERPOP qualifies as a VIE. EQR has a controlling financial interest in ERPOP and, thus, is ERPOP’s primary beneficiary. EQR has the power to direct the activities of ERPOP that most significantly impact ERPOP’s economic performance as well as the obligation to absorb losses or the right to receive benefits from ERPOP that could potentially be significant to ERPOP. As a result, ERPOP is required to be consolidated on EQR’s financial statements. The Company agreed to a maximum investment of $5.0 million each for two private equity funds, both of which primarily focus on real estate technology investments. The Company accounts for both investments under the equity method of accounting. As of March 31, 2018, the Company’s interest in these investments had a combined basis of $4.1 million. On February 27, 2013, in connection with the acquisition of Archstone, subsidiaries of the Company entered into three limited liability company agreements (collectively, the “Residual JV”). The Residual JV owned certain Archstone assets and succeeded to certain residual Archstone liabilities/litigation. The Residual JV is owned 60% by the Company and 40% by its joint venture partner. The On February 27, 2013, in connection with the acquisition of Archstone, a subsidiary of the Company entered into a limited liability company agreement (the “Legacy JV”), through which they assumed obligations of Archstone in the form of preferred interests, some of which are governed by tax protection arrangements. At March 31, 2018, the remaining preferred interests had an aggregate liquidation value of $37.3 million, our share of which is included in other liabilities in the accompanying consolidated balance sheets. Obligations of the Legacy JV are borne 60% by the Company and 40% by its joint venture partner. The Legacy JV is managed by a Management Committee consisting of two members from each of the Company and its joint venture partner. Both partners have equal participation in the Management Committee and all significant participating rights are shared by both partners. As a result, the Legacy JV does not qualify as a VIE. The Company alone does not have the power to direct the activities of the Legacy JV that most significantly impact the Legacy JV’s economic performance and as a result, the Legacy JV is unconsolidated and recorded using the equity method of accounting. |
Restricted Deposits
Restricted Deposits | 3 Months Ended |
Mar. 31, 2018 | |
Deposits Restricted [Abstract] | |
Restricted Deposits | 7. Restricted Deposits The following table presents the Company’s restricted deposits as of March 31, 2018 and December 31, 2017 (amounts in thousands): March 31, 2018 December 31, 2017 Mortgage escrow deposits: Real estate taxes and insurance $ 1,279 $ 845 Replacement reserves 7,423 8,347 Mortgage principal reserves/sinking funds 4,778 3,167 Other 852 852 Mortgage escrow deposits 14,332 13,211 Restricted cash: Earnest money on pending acquisitions — 750 Restricted deposits on real estate investments 53 58 Resident security and utility deposits 34,967 35,183 Other 906 913 Restricted cash 35,926 36,904 Restricted deposits $ 50,258 $ 50,115 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 8. Debt EQR Mortgage Notes Payable As of March 31, 2018, the Company had outstanding mortgage debt of approximately $2.9 billion. During the quarter ended March 31, 2018, the Company: • Repaid $550.0 million of 6.08% mortgage debt held in a Fannie Mae loan pool maturing in 2020 and incurred a prepayment penalty of approximately $22.1 million; • Repaid $43.7 million of conventional fixed-rate mortgage loans maturing in 2018; • Repaid $131.9 million of various tax-exempt mortgage bonds maturing in 2028 through 2042; and • Repaid $1.7 million of scheduled principal repayments on various mortgage debt. The Company recorded $1.6 million of write-offs of unamortized deferred financing costs during the quarter ended March 31, 2018 as additional interest expense related to debt extinguishment of mortgages. The Company also recorded $0.2 million of write-offs of net unamortized premiums during the quarter ended March 31, 2018 as a reduction of interest expense related to debt extinguishment of mortgages. As of March 31, 2018, the Company had $563.5 million of secured debt subject to third party credit enhancement. As March 31, 2018 Notes As of March 31, 2018, the Company had outstanding unsecured notes of approximately $5.5 billion. During the quarter ended March 31, 2018, the Company issued $500.0 million of ten-year 3.50% unsecured notes, receiving net proceeds of approximately $497.0 million before underwriting fees, hedge termination costs and other expenses, at an all-in effective interest rate of 3.61%. As March 31, 2018 The Company’s unsecured public debt contains certain financial and operating covenants including, among other things, maintenance of certain financial ratios. The Company was in compliance with its unsecured public debt covenants for the quarter ended March 31, 2018. Line of Credit and Commercial Paper On November 3, 2016, the Company replaced its existing $2.5 billion facility with a $2.0 billion unsecured revolving credit facility maturing January 10, 2022. The Company has the ability to increase available borrowings by an additional $750.0 million by adding additional banks to the facility or obtaining the agreement of existing banks to increase their commitments. The interest rate on advances under the facility will generally be LIBOR plus a spread (currently 0.825%), or based on bids received from the lending group, and the Company pays an annual facility fee (currently 12.5 basis points). Both the spread and the facility fee are dependent on the credit rating of the Company’s long term debt. On March 31, 2018 As March 31, 2018 Other On April 24, 2017, the Company executed a new letter of credit facility with a third party financial institution which is not backed by or collateralized by borrowings on the Company’s unsecured revolving credit facility. As of March 31, 2018 |
Derivative and Other Fair Value
Derivative and Other Fair Value Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Derivative and Other Fair Value Instruments | 9. Derivative and Other Fair Value 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. In the normal course of business, the Company is exposed to the effect of interest rate changes. The Company seeks to manage these risks by following established risk management policies and procedures including the use of derivatives to hedge interest rate risk on debt instruments. The Company may also use derivatives to manage commodity prices in the daily operations of the business. A • 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 The Company’s derivative positions are valued using models developed by the respective counterparty as well as models developed internally by the Company that use as their basis readily observable market parameters (such as forward yield curves and credit default swap data). Employee holdings other than Common Shares within the supplemental executive retirement plan (the “SERP”) are valued using quoted market prices for identical assets and are included in other assets and other liabilities on the consolidated balance sheets. Redeemable Noncontrolling Interests – Operating Partnership/Redeemable Limited Partners are valued using the quoted market price of Common Shares. The fair values disclosed for mortgage notes payable and unsecured debt (including its commercial paper and line of credit, if applicable) were calculated using indicative rates provided by lenders of similar loans in the case of mortgage notes payable and the private unsecured debt (including its commercial paper and line of credit, if applicable) and quoted market prices for each underlying issuance in the case of the public unsecured notes. The fair values of the Company’s financial instruments (other than mortgage notes payable, unsecured notes, commercial paper, line of credit and derivative instruments), including cash and cash equivalents and other financial instruments, approximate their carrying or contract value. The March 31, 2018 December 31, 2017 Estimated Fair Value (Level 2) Carrying Value Estimated Fair Value (Level 2) Carrying Value Mortgage notes payable, net $ 2,841,288 $ 2,894,344 $ 3,615,384 $ 3,618,722 Unsecured debt, net 5,878,000 5,765,133 5,619,744 5,338,569 Total debt, net $ 8,719,288 $ 8,659,477 $ 9,235,128 $ 8,957,291 The March 31, 2018 Fair Value Hedges (1) Forward Starting Swaps (2) Current Notional Balance $ 450,000 $ 600,000 Lowest Interest Rate 2.375 % 2.1478 % Highest Interest Rate 2.375 % 3.0030 % Earliest Maturity Date 2019 2028 Latest Maturity Date 2019 2029 (1) Fair Value Hedges – Converts outstanding fixed rate unsecured notes ($450.0 million 2.375% notes due July 1, 2019) to a floating interest rate of 90-Day LIBOR plus 0.61%. (2) Forward Starting Swaps – Designed to partially fix interest rates in advance of planned future debt issuances. Of the $600.0 million notional balance, $250.0 million of these swaps have mandatory counterparty terminations in 2019 and are targeted for certain 2018 debt issuances while $350.0 million of these swaps have mandatory counterparty terminations in 2020 and are targeted for certain 2019 debt issuances. The Fair Value Measurements at Reporting Date Using Description Balance Sheet Location 3/31/2018 Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Derivatives designated as hedging instruments: Interest Rate Contracts: Forward Starting Swaps Other Assets $ 12,637 $ — $ 12,637 $ — Supplemental Executive Retirement Plan Other Assets 138,444 138,444 — — Total $ 151,081 $ 138,444 $ 12,637 $ — Liabilities Derivatives designated as hedging instruments: Interest Rate Contracts: Fair Value Hedges Other Liabilities $ 3,886 $ — $ 3,886 $ — Forward Starting Swaps Other Liabilities 3,045 — 3,045 — Supplemental Executive Retirement Plan Other Liabilities 138,444 138,444 — — Total $ 145,375 $ 138,444 $ 6,931 $ — Redeemable Noncontrolling Interests – Operating Partnership/Redeemable Limited Partners Mezzanine $ 354,567 $ — $ 354,567 $ — Fair Value Measurements at Reporting Date Using Description Balance Sheet Location 12/31/2017 Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Derivatives designated as hedging instruments: Interest Rate Contracts: Forward Staring Swaps Other Assets $ 5,143 $ — $ 5,143 $ — Supplemental Executive Retirement Plan Other Assets 140,159 140,159 — — Total $ 145,302 $ 140,159 $ 5,143 $ — Liabilities Derivatives designated as hedging instruments: Interest Rate Contracts: Fair Value Hedges Other Liabilities $ 1,597 $ — $ 1,597 $ — Supplemental Executive Retirement Plan Other Liabilities 140,159 140,159 — — Total $ 141,756 $ 140,159 $ 1,597 $ — Redeemable Noncontrolling Interests – Operating Partnership/Redeemable Limited Partners Mezzanine $ 366,955 $ — $ 366,955 $ — The March 31, 2018 Type of Fair Value Hedge Location of Gain/(Loss) Recognized in Income on Derivative Amount of Gain/(Loss) Recognized in Income on Derivative Hedged Item Income Statement Location of Hedged Item Gain/(Loss) Amount of Gain/(Loss) Recognized in Income on Hedged Item Derivatives designated as hedging instruments: Interest Rate Contracts: Interest Rate Swaps Interest expense $ (2,289 ) Fixed rate debt Interest expense $ 2,289 Total $ (2,289 ) $ 2,289 March 31, 2017 Type of Fair Value Hedge Location of Gain/(Loss) Recognized in Income on Derivative Amount of Gain/(Loss) Recognized in Income on Derivative Hedged Item Income Statement Location of Hedged Item Gain/(Loss) Amount of Gain/(Loss) Recognized in Income on Hedged Item Derivatives designated as hedging instruments: Interest Rate Contracts: Interest Rate Swaps Interest expense $ (1,106 ) Fixed rate debt Interest expense $ 1,106 Total $ (1,106 ) $ 1,106 The Effective Portion Ineffective Portion March 31, 2018 Type of Cash Flow Hedge Amount of Gain/(Loss) Recognized in OCI on Derivative Location of Gain/(Loss) Reclassified from Accumulated OCI into Income Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income Location of Gain/(Loss) Recognized in Income on Derivative Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income Derivatives designated as hedging instruments: Interest Rate Contracts: Forward Starting Swaps $ 6,087 Interest expense $ (4,791 ) N/A $ — Total $ 6,087 $ (4,791 ) $ — Effective Portion Ineffective Portion March 31, 2017 Type of Cash Flow Hedge Amount of Gain/(Loss) Recognized in OCI on Derivative Location of Gain/(Loss) Reclassified from Accumulated OCI into Income Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income Location of Gain/(Loss) Recognized in Income on Derivative Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income Derivatives designated as hedging instruments: Interest Rate Contracts: Forward Starting Swaps $ — Interest expense $ (4,583 ) N/A $ — Total $ — $ (4,583 ) $ — As March 31, 2018 December 31, 2017 March 31, 2018 In February 2018, the Company received approximately $1.6 million to settle two forward starting swaps in conjunction with the issuance of $500.0 million of ten-year unsecured public notes. The entire $1.6 million was initially deferred as a component of accumulated other comprehensive income (loss) and will be recognized as a decrease to interest expense over the ten-year term of the notes. |
Earning Per Share and Earnings
Earning Per Share and Earnings Per Unit | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earning Per Share And Earnings Per Unit | 10. Earning Per Share and Earnings Per Equity Residential The Quarter Ended March 31, 2018 2017 Numerator for net income per share – basic: Net income $ 220,548 $ 149,941 Allocation to Noncontrolling Interests – Operating Partnership (8,059 ) (5,411 ) Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties (680 ) (788 ) Preferred distributions (773 ) (773 ) Numerator for net income per share – basic $ 211,036 $ 142,969 Numerator for net income per share – diluted: Net income $ 220,548 $ 149,941 Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties (680 ) (788 ) Preferred distributions (773 ) (773 ) Numerator for net income per share – diluted $ 219,095 $ 148,380 Denominator for net income per share – basic and diluted: Denominator for net income per share – basic 367,800 366,605 Effect of dilutive securities: OP Units 12,863 12,899 Long-term compensation shares/units 2,355 2,776 Denominator for net income per share – diluted 383,018 382,280 Net income per share – basic $ 0.57 $ 0.39 Net income per share – diluted $ 0.57 $ 0.39 ERP Operating Limited Partnership The following tables set forth the computation of net income per Unit – basic and net income per Unit – diluted for the Operating Partnership (amounts in thousands except per Unit amounts): Quarter Ended March 31, 2018 2017 Numerator for net income per Unit – basic and diluted: Net income $ 220,548 $ 149,941 Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties (680 ) (788 ) Allocation to Preference Units (773 ) (773 ) Numerator for net income per Unit – basic and diluted $ 219,095 $ 148,380 Denominator for net income per Unit – basic and diluted: Denominator for net income per Unit – basic 380,663 379,504 Effect of dilutive securities: Dilution for Units issuable upon assumed exercise/vesting of the Company’s long-term compensation shares/units 2,355 2,776 Denominator for net income per Unit – diluted 383,018 382,280 Net income per Unit – basic $ 0.57 $ 0.39 Net income per Unit – diluted $ 0.57 $ 0.39 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. 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. As of March 31, 2018, the Company does have environmental reserves totaling approximately $5.2 million related to three of its properties. The The Company does not believe there is any 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. As of March 31, 2018, the Company has three wholly owned projects totaling 443 apartment units in various stages of development with remaining commitments to fund of approximately $105.2 million and estimated completion dates ranging through December 31, 2019, as well as other completed development projects that are in various stages of lease-up or are stabilized. As March 31, 2018 |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Reportable Segments | 12. Reportable Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses and about which discrete financial information is available that is evaluated regularly by the chief The Company’s primary business is the acquisition, development and management of multifamily residential properties, which includes the generation of rental and other related income through the leasing of apartment units to residents. The chief operating decision maker evaluates the Company’s operating performance geographically by market and both on a same store and non-same store basis. The Company’s same store operating segments located in its coastal gateway markets represent its reportable segments. The Company’s operating segments located in its other markets (Phoenix) that are not material have also been included in the tables presented below. The Company’s fee and asset management and development activities are other business activities that do not constitute an operating segment and as such, have been aggregated in the “Other” category in the tables presented below. All The primary financial measure for the Company’s rental real estate segment is net operating income (“NOI”), which represents The Quarter Ended March 31, 2018 2017 Rental income $ 632,831 $ 603,920 Property and maintenance expense (108,202 ) (102,608 ) Real estate taxes and insurance expense (91,914 ) (81,728 ) Total operating expenses (200,116 ) (184,336 ) Net operating income $ 432,715 $ 419,584 The following tables present NOI for each segment from our rental real estate for the quarters ended March 31, 2018 and 2017, March 31, 2018 Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 Rental Income Operating Expenses NOI Rental Income Operating Expenses NOI Same store (1) Los Angeles $ 102,484 $ 29,860 $ 72,624 $ 98,636 $ 28,651 $ 69,985 Orange County 22,502 5,527 16,975 21,656 5,462 16,194 San Diego 22,493 5,963 16,530 21,723 5,799 15,924 Subtotal - Southern California 147,479 41,350 106,129 142,015 39,912 102,103 San Francisco 109,212 26,995 82,217 106,306 26,928 79,378 Washington D.C. 107,155 33,663 73,492 106,443 32,332 74,111 New York 119,626 47,825 71,801 119,363 45,439 73,924 Boston 57,814 16,672 41,142 56,388 15,783 40,605 Seattle 48,611 13,688 34,923 46,425 13,015 33,410 Other Markets 487 165 322 464 196 268 Total same store 590,384 180,358 410,026 577,404 173,605 403,799 Non-same store/other (2) (3) Non-same store 38,622 13,733 24,889 15,961 5,894 10,067 Other (3) 3,825 6,025 (2,200 ) 10,555 4,837 5,718 Total non-same store/other 42,447 19,758 22,689 26,516 10,731 15,785 Totals $ 632,831 $ 200,116 $ 432,715 $ 603,920 $ 184,336 $ 419,584 (1) For the quarters ended March 31, 2018 and 2017, same store primarily includes all properties acquired or completed that were stabilized prior to January 1, 2017, less properties subsequently sold, which represented 72,204 apartment (2) For the quarters ended March 31, 2018 and 2017, non-same store primarily includes properties acquired after January 1, 2017, plus any properties in lease-up and not stabilized as of January 1, (3) Other includes development, other corporate operations and operations prior to disposition for properties sold. Quarter Ended March 31, 2018 Total Assets Capital Expenditures Same store (1) Los Angeles $ 2,670,909 $ 5,939 Orange County 325,898 1,620 San Diego 417,593 1,270 Subtotal - Southern California 3,414,400 8,829 San Francisco 3,020,673 8,743 Washington D.C. 3,771,999 5,964 New York 4,447,994 5,216 Boston 1,637,837 4,358 Seattle 1,306,512 3,048 Other Markets 12,918 77 Total same store 17,612,333 36,235 Non-same store/other (2) (3) Non-same store 2,276,821 454 Other (3) 494,716 58 Total non-same store/other 2,771,537 512 Totals $ 20,383,870 $ 36,747 (1) Same store primarily includes all properties acquired or completed that were stabilized prior to January 1, 2017, less properties subsequently sold, which represented 72,204 apartment (2) Non-same store primarily includes properties acquired after January 1, 2017, plus any properties in lease-up and not stabilized as of January 1, (3) Other includes development, other corporate operations and capital expenditures for properties |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Subsequent to March 31, 2018, the Company acquired one property consisting of 240 apartment units for $146.0 million. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis of Presentation | 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. These reclassifications did not have an impact on net income previously reported. Operating results for the quarter ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. In preparation of the Company’s 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 sheets at December 31, 2017 have been derived from the audited financial statements at that date but do 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 Company’s and the Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2017. |
Income and Other Taxes | Income and Other Taxes Due to the structure of EQR 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. In addition, ERPOP generally is not liable for federal income taxes as the partners recognize their proportionate share of income or loss in their tax returns; therefore no provision for federal income taxes has been made at the ERPOP 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 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 changes in tax rates on deferred tax assets and liabilities are recognized in earnings in the period enacted. The Company’s deferred tax assets were generally the result of tax affected suspended interest deductions, net operating losses, differing depreciable lives on capitalized assets and the timing of expense recognition for certain accrued liabilities. In December 2017, the President signed into law H.R. 1, informally titled the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act is not expected to have a material impact on our REIT or subsidiary entities, our ability to continue to qualify as a REIT or on our results of operations. However, the complete impact of the Tax Act is not yet fully known and there can be no assurances that it will have a neutral or favorable impact. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements In • Lessors – Leases will be accounted for using an approach that is substantially equivalent to existing guidance for operating, sales-type and financing leases, but aligned with the new revenue recognition standard. Lessors will be required to allocate lease payments to separate lease and non-lease components of each lease agreement, with the non-lease components evaluated under the new revenue recognition standard. • Lessees – Leases will be accounted for using a dual approach, classifying leases as either operating or finance based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized on a straight-line basis over the term of the lease (for operating leases) or based on an effective interest method with a front-loaded expense recognition (for finance leases). A lessee is also required to record a right-of-use asset and a lease liability on its balance sheet for all leases with a term of greater than 12 months regardless of their classification as operating or finance leases. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. The new standard will be effective for the Company beginning on January 1, 2019, with early adoption permitted, though the Company currently anticipates adopting the new standard on the effective date. The new standard must be adopted using a modified retrospective method, which requires application of the new guidance at the beginning of the earliest comparative period presented and provides for certain practical expedients, which the Company currently anticipates electing. The Company anticipates that its residential and retail/commercial leases where it is the lessor will continue to be accounted for as operating leases under the new standard. Therefore, the Company does not currently anticipate significant changes in the accounting for its lease revenues. The Company is also the lessee under various corporate office and ground leases, which it will be required to recognize right of use assets and related lease liabilities on its consolidated balance sheets upon adoption. The Company currently anticipates that its corporate office leases where it is the lessee will continue to be accounted for as operating leases under the new standard. Based on its anticipated election of the practical expedients, the Company would not be required to reassess the classification of existing ground leases and therefore these leases would continue to be accounted for as operating leases. However, in the event we modify existing ground leases and/or enter into new ground leases after adoption of the new standard, such leases will likely be classified as finance leases. The Company will continue to evaluate the impact of adopting the new leases standard on its consolidated results of operations and financial position. In June 2016, the FASB In August 2017, the FASB issued a final standard which makes changes to the hedge accounting model to enable entities to better portray their risk management activities in the financial statements. The new standard expands an entity’s ability to hedge nonfinancial and financial risk components, reduces complexity in fair value hedges of interest rate risk and eases certain documentation and assessment requirements. The new standard also eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of any hedging instrument to be presented in the same income statement line as the hedged instrument. The new standard will be effective for the Company beginning on January 1, 2019 and early adoption is permitted. The Company is currently evaluating the impact of adopting the new standard on its consolidated results of operations and financial position. Recently Adopted Accounting Pronouncements In FASB Revenue from Contracts with Customers any, For the remaining approximately 6% of rental income that is subject to the new revenue recognition standard, the Company’s disaggregated revenue streams are disclosed in the table below for the quarter ended March 31, 2018. These revenue streams have the same timing and pattern of revenue recognition across our reportable segments, with consistent allocations between the leasing and revenue recognition standards. The revenue streams and percentages are comparable with the percentage of rental income for the quarter ended March 31, 2017. The following table presents the disaggregation of revenue streams of our rental income for the quarter ended March 31, 2018 (amounts in thousands): Quarter Ended March 31, 2018 Revenue Stream Applicable Standard Amount of Rental Income Percentage of Rental Income Leasing revenue Leases $ 592,813 93.7 % Utility recoveries (“RUBS”) Revenue Recognition 15,375 2.4 % Parking revenue Revenue Recognition 7,797 1.2 % Other revenue Revenue Recognition 16,846 2.7 % Rental income $ 632,831 100.0 % Additionally, as part of the new revenue recognition standard, the FASB issued amendments related to partial sales of real estate (see further discussion below). Adoption of the new partial sales standard did not result in a change of accounting for the Company related to its disposition process. We concluded that the Company’s typical dispositions will continue to meet the criteria for sale and associated profit recognition under both new standards. In FASB In FASB • Cash payments related to debt prepayments or extinguishment costs are to be classified within financing • The portion of the cash payment made to settle a zero-coupon bond or a bond with an insignificant cash coupon attributable to accreted interest related to a debt discount is to be classified as a cash outflow within operating activities, and the portion attributable to the principal is to be classified within financing • Insurance settlement proceeds are to be classified based on the nature of the • Companies must elect to classify distributions received from equity method investees using either a cumulative earnings approach or a look-through approach and the election must be disclosed; • Restricted Total The While overall cash flows did not change, there are changes between cash flow classifications due primarily to the debt prepayment penalties that the Company has incurred in the comparative period. As of March 31, 2017, the following cash flows were reclassified (amounts in thousands): Quarter Ended March 31, 2017 As Originally Presented Reclassification Adjustments As Presented Herein Cash Flows from Operating Activities: Amortization of discounts and premiums on debt $ 1,637 $ (507 ) $ 1,130 Net (gain) loss on debt extinguishment $ — $ 11,698 $ 11,698 (Increase) decrease in deposits - restricted $ 256 $ (256 ) $ — (Increase) decrease in mortgage deposits $ 315 $ (315 ) $ — Net cash provided by operating activities $ 293,284 $ 10,620 $ 303,904 Cash Flows from Investing Activities: (Increase) decrease in deposits on real estate acquisitions and investments, net $ 637 $ (637 ) $ — (Increase) decrease in mortgage deposits $ (1,030 ) $ 1,030 $ — Net cash provided by (used for) investing activities $ (73,035 ) $ 393 $ (72,642 ) Cash Flows from Financing Activities: Mortgage deposits $ (2,381 ) $ 2,381 $ — Mortgage notes payable, net: Net gain (loss) on debt extinguishment $ — $ (11,698 ) $ (11,698 ) Line of credit and commercial paper: Commercial paper proceeds $ 1,309,681 $ 507 $ 1,310,188 Net cash (used for) financing activities $ (255,317 ) $ (8,810 ) $ (264,127 ) Cash and cash equivalents, beginning of period $ 77,207 (adjustments for restricted deposits, beginning of period) $ 141,881 Cash and cash equivalents and restricted deposits, beginning of period $ 219,088 Cash and cash equivalents, end of period $ 42,139 (adjustments for restricted deposits, end of period) $ 144,084 Cash and cash equivalents and restricted deposits, end of period $ 186,223 In FASB In FASB clarifies the accounting treatment for partial sales of nonfinancial assets (i.e. real estate). The standard clarifies that partial sales transactions include contributions of nonfinancial assets to a joint venture or other noncontrolled investee. Companies must recognize a full gain or loss on transfers of nonfinancial assets to equity method investees. The standard requires companies to derecognize distinct nonfinancial assets or distinct in substance nonfinancial assets in partial sale transactions when it does not have a controlling financial interest in the legal entity that holds the asset and transfers control of the asset. Once the distinct nonfinancial asset is transferred, the company is required to measure any non-controlling interest it receives or retains at fair value and recognize a full gain or loss on the transaction. If a company transfers ownership interests in a consolidated subsidiary and continues to maintain a controlling financial interest, the company does not derecognize the assets or liabilities, and accounts for the transaction as an equity transaction and no gain or loss is recognized. The Company has not had a partial sale of nonfinancial assets in the current or comparative periods, therefore the adoption of this standard did not have a material impact on its consolidated results of operations and financial position. |
Other | Other The Company is the controlling partner in various consolidated partnerships owning 17 properties consisting of 3,535 apartment units having a noncontrolling interest book value of $1.3 million at March 31, 2018. The Company is required to make certain disclosures regarding noncontrolling interests in consolidated limited-life subsidiaries. Of the consolidated entities described above, the Company is the controlling partner in limited-life partnerships owning four properties having a noncontrolling interest deficit balance of $8.7 million. These four partnership agreements contain provisions that require the partnerships to be liquidated through the sale of their assets upon reaching a date specified in each respective partnership agreement. The Company, as controlling partner, has an obligation to cause the property owning partnerships to distribute the proceeds of liquidation to the Noncontrolling Interests in these Partially Owned Properties only to the extent that the net proceeds received by the partnerships from the sale of their assets warrant a distribution based on the partnership agreements. As of March 31, 2018, the Company estimates the value of Noncontrolling Interest distributions for these four properties would have been approximately $66.3 million (“Settlement Value”) had the partnerships been liquidated. This Settlement Value is based on estimated third party consideration realized by the partnerships upon disposition of the four Partially Owned Properties and is net of all other assets and liabilities, including yield maintenance on the mortgages encumbering the properties, that would have been due on had those mortgages been prepaid. Due to, among other things, the inherent uncertainty in the sale of real estate assets, the amount of any potential distribution to the Noncontrolling Interests in the Company’s Partially Owned Properties is subject to change. To the extent that the partnerships’ underlying assets are worth less than the underlying liabilities, the Company has no obligation to remit any consideration to the Noncontrolling Interests in these Partially Owned Properties |
Business (Tables)
Business (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Ownership Breakdown | The ownership breakdown includes (table does not include various uncompleted development properties): Properties Apartment Units Wholly Owned Properties 282 73,160 Master-Leased Properties – Consolidated 2 759 Partially Owned Properties – Consolidated 17 3,535 Partially Owned Properties – Unconsolidated 2 945 303 78,399 Note: Effective February 1, 2018, the Company took over management of one of its Master-Leased properties containing 94 apartment units located in Boston. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary Of Significant Accounting Policies [Abstract] | |
Schedule of Disaggregation of Revenue Streams of Rental Income and Percentage of Rental Income | The following table presents the disaggregation of revenue streams of our rental income for the quarter ended March 31, 2018 (amounts in thousands): Quarter Ended March 31, 2018 Revenue Stream Applicable Standard Amount of Rental Income Percentage of Rental Income Leasing revenue Leases $ 592,813 93.7 % Utility recoveries (“RUBS”) Revenue Recognition 15,375 2.4 % Parking revenue Revenue Recognition 7,797 1.2 % Other revenue Revenue Recognition 16,846 2.7 % Rental income $ 632,831 100.0 % |
Schedule of Material Changes Between Cash Flow Classifications due to Substantial Debt Prepayment Penalties | While overall cash flows did not change, there are changes between cash flow classifications due primarily to the debt prepayment penalties that the Company has incurred in the comparative period. As of March 31, 2017, the following cash flows were reclassified (amounts in thousands): Quarter Ended March 31, 2017 As Originally Presented Reclassification Adjustments As Presented Herein Cash Flows from Operating Activities: Amortization of discounts and premiums on debt $ 1,637 $ (507 ) $ 1,130 Net (gain) loss on debt extinguishment $ — $ 11,698 $ 11,698 (Increase) decrease in deposits - restricted $ 256 $ (256 ) $ — (Increase) decrease in mortgage deposits $ 315 $ (315 ) $ — Net cash provided by operating activities $ 293,284 $ 10,620 $ 303,904 Cash Flows from Investing Activities: (Increase) decrease in deposits on real estate acquisitions and investments, net $ 637 $ (637 ) $ — (Increase) decrease in mortgage deposits $ (1,030 ) $ 1,030 $ — Net cash provided by (used for) investing activities $ (73,035 ) $ 393 $ (72,642 ) Cash Flows from Financing Activities: Mortgage deposits $ (2,381 ) $ 2,381 $ — Mortgage notes payable, net: Net gain (loss) on debt extinguishment $ — $ (11,698 ) $ (11,698 ) Line of credit and commercial paper: Commercial paper proceeds $ 1,309,681 $ 507 $ 1,310,188 Net cash (used for) financing activities $ (255,317 ) $ (8,810 ) $ (264,127 ) Cash and cash equivalents, beginning of period $ 77,207 (adjustments for restricted deposits, beginning of period) $ 141,881 Cash and cash equivalents and restricted deposits, beginning of period $ 219,088 Cash and cash equivalents, end of period $ 42,139 (adjustments for restricted deposits, end of period) $ 144,084 Cash and cash equivalents and restricted deposits, end of period $ 186,223 |
Equity, Capital and Other Int29
Equity, Capital and Other Interests (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Changes in Issued and Outstanding Common Shares and Units | The following tables present the changes in the Company’s issued and outstanding Common Shares and “Units” (which includes OP Units and restricted units) for the quarter ended March 31, 2018: 2018 Common Shares Common Shares outstanding at January 1, 368,018,082 Common Shares Issued: Conversion of OP Units 5,000 Exercise of share options 45,391 Employee Share Purchase Plan (ESPP) 35,177 Restricted share grants, net 108,261 Common Shares outstanding at March 31, 368,211,911 Units Units outstanding at January 1, 13,768,438 Restricted unit grants, net 263,048 Conversion of OP Units to Common Shares (5,000 ) Units outstanding at March 31, 14,026,486 Total Common Shares and Units outstanding at March 31, 382,238,397 Units Ownership Interest in Operating Partnership 3.7 % |
Changes in Redemption Value of Redeemable Noncontrolling Interests and Limited Partners Interest | The 2018 Balance at January 1, $ 366,955 Change in market value (12,831 ) Change in carrying value 443 Balance at March 31, $ 354,567 |
Issued and Outstanding Preferred Shares and Preference Units | The Amounts in thousands Annual Call Dividend Per March 31, December 31, Date (1) Share (2) 2018 2017 Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized: 8.29% Series K Cumulative Redeemable Preferred; liquidation value $50 per share; 745,600 shares issued and outstanding as of March 31, 2018 and December 31, 2017 12/10/26 $ 4.145 $ 37,280 $ 37,280 $ 37,280 $ 37,280 (1) On or after the call date, redeemable preferred shares may be redeemed for cash at the option of the Company, in whole or in part, at a redemption price equal to the liquidation price per share, plus accrued and unpaid distributions, if any. (2) Dividends on Preferred Shares are payable quarterly. |
ERPOP [Member] | |
Changes in Issued and Outstanding Common Shares and Units | The following tables present the changes in the Operating Partnership’s issued and outstanding Units and in the limited partners’ Units for the quarter ended March 31, 2018: 2018 General and Limited Partner Units General and Limited Partner Units outstanding at January 1, 381,786,520 Issued to General Partner: Exercise of EQR share options 45,391 EQR’s Employee Share Purchase Plan (ESPP) 35,177 EQR’s restricted share grants, net 108,261 Issued to Limited Partners: Restricted unit grants, net 263,048 General and Limited Partner Units outstanding at March 31, 382,238,397 Limited Partner Units Limited Partner Units outstanding at January 1, 13,768,438 Limited Partner restricted unit grants, net 263,048 Conversion of Limited Partner OP Units to EQR Common Shares (5,000 ) Limited Partner Units outstanding at March 31, 14,026,486 Limited Partner Units Ownership Interest in Operating Partnership 3.7 % |
Changes in Redemption Value of Redeemable Noncontrolling Interests and Limited Partners Interest | The following table presents the changes in the redemption value of the Redeemable Limited Partners for the quarter ended March 31, 2018 (amounts in thousands): 2018 Balance at January 1, $ 366,955 Change in market value (12,831 ) Change in carrying value 443 Balance at March 31, $ 354,567 |
Issued and Outstanding Preferred Shares and Preference Units | The December 31, 2017 Amounts in thousands Annual Call Dividend Per March 31, December 31, Date (1) Unit (2) 2018 2017 Preference Units: 8.29% Series K Cumulative Redeemable Preference Units; liquidation value $50 per unit; 745,600 units issued and outstanding as of March 31, 2018 and December 31, 2017 12/10/26 $ 4.145 $ 37,280 $ 37,280 $ 37,280 $ 37,280 (1) On or after the call date, redeemable preference units 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 Company Preferred Shares. (2) Dividends on Preference Units are payable quarterly. |
Real Estate and Lease Intangi30
Real Estate and Lease Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Real Estate [Abstract] | |
Summary of Carrying Amounts of Investment in Real Estate | The following table summarizes the carrying amounts for the Company’s investment in real estate (at cost) as of March 31, 2018 and December 31, 2017 (amounts in thousands): March 31, 2018 December 31, 2017 Land $ 5,960,804 $ 5,996,024 Depreciable property: Buildings and improvements 17,748,897 17,743,042 Furniture, fixtures and equipment 1,575,934 1,548,961 In-Place lease intangibles 473,522 476,359 Projects under development: Land 30,605 43,226 Construction-in-progress 66,004 120,321 Land held for development: Land 62,538 62,538 Construction-in-progress 40,313 36,425 Investment in real estate 25,958,617 26,026,896 Accumulated depreciation (6,173,047 ) (6,040,378 ) Investment in real estate, net $ 19,785,570 $ 19,986,518 |
Summary of Carrying Amounts of Above and Below Market Ground And Retail Lease Intangibles | The following table summarizes the carrying amounts for the Company’s above and below market ground and retail lease intangibles as of March 31, 2018 and December 31, 2017 (amounts in thousands): Description Balance Sheet Location March 31, 2018 December 31, 2017 Assets Ground lease intangibles – below market Other Assets $ 191,918 $ 191,918 Retail lease intangibles – above market Other Assets 1,260 1,260 Lease intangible assets 193,178 193,178 Accumulated amortization (23,562 ) (22,434 ) Lease intangible assets, net $ 169,616 $ 170,744 Liabilities Ground lease intangibles – above market Other Liabilities $ 2,400 $ 2,400 Retail lease intangibles – below market Other Liabilities 5,270 5,270 Lease intangible liabilities 7,670 7,670 Accumulated amortization (5,173 ) (5,143 ) Lease intangible liabilities, net $ 2,497 $ 2,527 |
Summary of the Effect of the Amortization for Above and Below Market Ground and Retail Lease Intangibles | The following table provides a summary of the effect of the amortization for above and below market ground and retail lease intangibles on Quarter Ended March 31, Description Income Statement Location 2018 2017 Ground lease intangible amortization Property and Maintenance $ (1,116 ) $ (1,080 ) Retail lease intangible amortization Rental Income 18 224 Total amortization of above/below market lease intangibles $ (1,098 ) $ (856 ) |
Summary of Aggregate Amortization for Above and Below Market Ground And Retail Lease Intangibles | The following table provides a summary of the aggregate amortization for above and below market ground and retail lease intangibles for each of the next five years (amounts in thousands): Remaining 2018 2019 2020 2021 2022 2023 Ground lease intangibles $ (3,347 ) $ (4,463 ) $ (4,463 ) $ (4,463 ) $ (4,463 ) $ (4,463 ) Retail lease intangibles 53 71 71 71 27 19 Total $ (3,294 ) $ (4,392 ) $ (4,392 ) $ (4,392 ) $ (4,436 ) $ (4,444 ) |
Acquired Properties From Unaffiliated Parties | During the quarter ended March 31, 2018, the Company acquired the entire equity interest in the following from unaffiliated parties (purchase price in thousands): Properties Apartment Units Purchase Price Rental Properties – Consolidated (1) 1 117 $ 53,700 Total 1 117 $ 53,700 (1) Purchase price includes an allocation of approximately $14.8 million to land and $39.3 million to depreciable property (inclusive of capitalized closing costs). |
Disposed Properties to Unaffiliated Parties | During the quarter ended March 31, 2018 , the Company disposed of the following to unaffiliated parties (sales price in thousands): Properties Apartment Units Sales Price Rental Properties – Consolidated 4 786 $ 290,020 Total 4 786 $ 290,020 |
Commitments To Acquire_Dispos31
Commitments To Acquire/Dispose of Real Estate (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments To Acquire Dispose Of Real Estate [Abstract] | |
Separate Agreement to Dispose of | The Company has entered into a separate agreement to dispose of the following (sales price in thousands): Properties Apartment Units Sales Price Land Parcels (one) — — $ 2,700 Total — — $ 2,700 |
Investments in Partially Owne32
Investments in Partially Owned Entities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments In Partially Owned Entities [Abstract] | |
Partially Owned Property Balance Sheet Schedule | The following tables and information summarize the Company’s investments March 31, 2018 Consolidated Unconsolidated (VIE) (Non-VIE) (VIE) (1) Total Total properties 17 2 — 2 Total apartment units 3,535 945 — 945 Balance sheet information at 3/31/2018 (at 100%): ASSETS Investment in real estate $ 875,187 $ 236,854 $ 172,995 $ 409,849 Accumulated depreciation (235,426 ) (46,190 ) (51,420 ) (97,610 ) Investment in real estate, net 639,761 190,664 121,575 312,239 Cash and cash equivalents 13,061 6,587 225 6,812 Investments in unconsolidated entities 43,926 — — — Restricted deposits 381 258 — 258 Other assets 25,879 243 320 563 Total assets $ 723,008 $ 197,752 $ 122,120 $ 319,872 LIABILITIES AND EQUITY/CAPITAL Mortgage notes payable, net (2) $ 302,656 $ 145,424 $ — $ 145,424 Accounts payable & accrued expenses 3,344 1,361 115 1,476 Accrued interest payable 1,037 691 — 691 Other liabilities 3,683 261 15 276 Security deposits 2,470 525 — 525 Total liabilities 313,190 148,262 130 148,392 Noncontrolling Interests – Partially Owned Properties/Partners’ equity 1,293 51,079 84,038 135,117 Company equity/General and Limited Partners’ Capital 408,525 (1,589 ) 37,952 36,363 Total equity/capital 409,818 49,490 121,990 171,480 Total liabilities and equity/capital $ 723,008 $ 197,752 $ 122,120 $ 319,872 |
Partially Owned Property Income Statement Schedule | Consolidated Unconsolidated (VIE) (Non-VIE) (VIE) (1) Total Operating information for the quarter ended 3/31/2018 (at 100%): Operating revenue $ 26,447 $ 6,942 $ 1,258 $ 8,200 Operating expenses 6,637 2,268 581 2,849 Net operating income 19,810 4,674 677 5,351 Property management 955 199 19 218 General and administrative 17 — — — Depreciation 10,479 2,677 1,375 4,052 Operating income (loss) 8,359 1,798 (717 ) 1,081 Interest and other income 27 — — — Interest: Expense incurred, net (3,312 ) (2,072 ) — (2,072 ) Amortization of deferred financing costs (68 ) — — — Income (loss) before income and other taxes and income (loss) from investments in unconsolidated entities 5,006 (274 ) (717 ) (991 ) Income and other tax (expense) benefit (18 ) (13 ) — (13 ) Income (loss) from investments in unconsolidated entities (393 ) — — — Net income (loss) $ 4,595 $ (287 ) $ (717 ) $ (1,004 ) (1) Includes the Company’s unconsolidated interest in an entity that owns the land underlying our Wisconsin Place apartment property and owns and operates the parking facility. This entity is excluded from the property and apartment unit count. (2) All debt is non-recourse to the Company. Note: The above tables exclude EQR’s ownership interest in ERPOP, private equity fund investments, and the Company’s interests in unconsolidated joint ventures established in connection with the acquisition of certain real estate related assets from Archstone Enterprise LP (“Archstone”). |
Restricted Deposits (Tables)
Restricted Deposits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Deposits Restricted [Abstract] | |
Restricted Deposits | The following table presents the Company’s restricted deposits as of March 31, 2018 and December 31, 2017 (amounts in thousands): March 31, 2018 December 31, 2017 Mortgage escrow deposits: Real estate taxes and insurance $ 1,279 $ 845 Replacement reserves 7,423 8,347 Mortgage principal reserves/sinking funds 4,778 3,167 Other 852 852 Mortgage escrow deposits 14,332 13,211 Restricted cash: Earnest money on pending acquisitions — 750 Restricted deposits on real estate investments 53 58 Resident security and utility deposits 34,967 35,183 Other 906 913 Restricted cash 35,926 36,904 Restricted deposits $ 50,258 $ 50,115 |
Derivative and Other Fair Val34
Derivative and Other Fair Value Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Carrying and Fair Values of Financial Instruments | The March 31, 2018 December 31, 2017 Estimated Fair Value (Level 2) Carrying Value Estimated Fair Value (Level 2) Carrying Value Mortgage notes payable, net $ 2,841,288 $ 2,894,344 $ 3,615,384 $ 3,618,722 Unsecured debt, net 5,878,000 5,765,133 5,619,744 5,338,569 Total debt, net $ 8,719,288 $ 8,659,477 $ 9,235,128 $ 8,957,291 |
Summary of Consolidated Derivative Instruments | The March 31, 2018 Fair Value Hedges (1) Forward Starting Swaps (2) Current Notional Balance $ 450,000 $ 600,000 Lowest Interest Rate 2.375 % 2.1478 % Highest Interest Rate 2.375 % 3.0030 % Earliest Maturity Date 2019 2028 Latest Maturity Date 2019 2029 (1) Fair Value Hedges – Converts outstanding fixed rate unsecured notes ($450.0 million 2.375% notes due July 1, 2019) to a floating interest rate of 90-Day LIBOR plus 0.61%. (2) Forward Starting Swaps – Designed to partially fix interest rates in advance of planned future debt issuances. Of the $600.0 million notional balance, $250.0 million of these swaps have mandatory counterparty terminations in 2019 and are targeted for certain 2018 debt issuances while $350.0 million of these swaps have mandatory counterparty terminations in 2020 and are targeted for certain 2019 debt issuances. |
Summary of Fair Value Measurements for Each Major Category of Assets and Liabilities Measured at Fair Value on Recurring Basis | The Fair Value Measurements at Reporting Date Using Description Balance Sheet Location 3/31/2018 Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Derivatives designated as hedging instruments: Interest Rate Contracts: Forward Starting Swaps Other Assets $ 12,637 $ — $ 12,637 $ — Supplemental Executive Retirement Plan Other Assets 138,444 138,444 — — Total $ 151,081 $ 138,444 $ 12,637 $ — Liabilities Derivatives designated as hedging instruments: Interest Rate Contracts: Fair Value Hedges Other Liabilities $ 3,886 $ — $ 3,886 $ — Forward Starting Swaps Other Liabilities 3,045 — 3,045 — Supplemental Executive Retirement Plan Other Liabilities 138,444 138,444 — — Total $ 145,375 $ 138,444 $ 6,931 $ — Redeemable Noncontrolling Interests – Operating Partnership/Redeemable Limited Partners Mezzanine $ 354,567 $ — $ 354,567 $ — Fair Value Measurements at Reporting Date Using Description Balance Sheet Location 12/31/2017 Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Derivatives designated as hedging instruments: Interest Rate Contracts: Forward Staring Swaps Other Assets $ 5,143 $ — $ 5,143 $ — Supplemental Executive Retirement Plan Other Assets 140,159 140,159 — — Total $ 145,302 $ 140,159 $ 5,143 $ — Liabilities Derivatives designated as hedging instruments: Interest Rate Contracts: Fair Value Hedges Other Liabilities $ 1,597 $ — $ 1,597 $ — Supplemental Executive Retirement Plan Other Liabilities 140,159 140,159 — — Total $ 141,756 $ 140,159 $ 1,597 $ — Redeemable Noncontrolling Interests – Operating Partnership/Redeemable Limited Partners Mezzanine $ 366,955 $ — $ 366,955 $ — |
Summary of Effect of Fair Value Hedges on the Accompanying Consolidated Statements of Operations and Comprehensive Income | The March 31, 2018 Type of Fair Value Hedge Location of Gain/(Loss) Recognized in Income on Derivative Amount of Gain/(Loss) Recognized in Income on Derivative Hedged Item Income Statement Location of Hedged Item Gain/(Loss) Amount of Gain/(Loss) Recognized in Income on Hedged Item Derivatives designated as hedging instruments: Interest Rate Contracts: Interest Rate Swaps Interest expense $ (2,289 ) Fixed rate debt Interest expense $ 2,289 Total $ (2,289 ) $ 2,289 March 31, 2017 Type of Fair Value Hedge Location of Gain/(Loss) Recognized in Income on Derivative Amount of Gain/(Loss) Recognized in Income on Derivative Hedged Item Income Statement Location of Hedged Item Gain/(Loss) Amount of Gain/(Loss) Recognized in Income on Hedged Item Derivatives designated as hedging instruments: Interest Rate Contracts: Interest Rate Swaps Interest expense $ (1,106 ) Fixed rate debt Interest expense $ 1,106 Total $ (1,106 ) $ 1,106 |
Summary of Effect of Cash Flow Hedges on the Accompanying Consolidated Statements of Operations and Comprehensive Income | The Effective Portion Ineffective Portion March 31, 2018 Type of Cash Flow Hedge Amount of Gain/(Loss) Recognized in OCI on Derivative Location of Gain/(Loss) Reclassified from Accumulated OCI into Income Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income Location of Gain/(Loss) Recognized in Income on Derivative Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income Derivatives designated as hedging instruments: Interest Rate Contracts: Forward Starting Swaps $ 6,087 Interest expense $ (4,791 ) N/A $ — Total $ 6,087 $ (4,791 ) $ — Effective Portion Ineffective Portion March 31, 2017 Type of Cash Flow Hedge Amount of Gain/(Loss) Recognized in OCI on Derivative Location of Gain/(Loss) Reclassified from Accumulated OCI into Income Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income Location of Gain/(Loss) Recognized in Income on Derivative Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income Derivatives designated as hedging instruments: Interest Rate Contracts: Forward Starting Swaps $ — Interest expense $ (4,583 ) N/A $ — Total $ — $ (4,583 ) $ — |
Earning Per Share and Earning35
Earning Per Share and Earnings Per Unit (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Schedule of Calculation of Numerator and Denominator in Earning Per Share and Earnings Per Unit | The Quarter Ended March 31, 2018 2017 Numerator for net income per share – basic: Net income $ 220,548 $ 149,941 Allocation to Noncontrolling Interests – Operating Partnership (8,059 ) (5,411 ) Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties (680 ) (788 ) Preferred distributions (773 ) (773 ) Numerator for net income per share – basic $ 211,036 $ 142,969 Numerator for net income per share – diluted: Net income $ 220,548 $ 149,941 Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties (680 ) (788 ) Preferred distributions (773 ) (773 ) Numerator for net income per share – diluted $ 219,095 $ 148,380 Denominator for net income per share – basic and diluted: Denominator for net income per share – basic 367,800 366,605 Effect of dilutive securities: OP Units 12,863 12,899 Long-term compensation shares/units 2,355 2,776 Denominator for net income per share – diluted 383,018 382,280 Net income per share – basic $ 0.57 $ 0.39 Net income per share – diluted $ 0.57 $ 0.39 |
ERPOP [Member] | |
Schedule of Calculation of Numerator and Denominator in Earning Per Share and Earnings Per Unit | The following tables set forth the computation of net income per Unit – basic and net income per Unit – diluted for the Operating Partnership (amounts in thousands except per Unit amounts): Quarter Ended March 31, 2018 2017 Numerator for net income per Unit – basic and diluted: Net income $ 220,548 $ 149,941 Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties (680 ) (788 ) Allocation to Preference Units (773 ) (773 ) Numerator for net income per Unit – basic and diluted $ 219,095 $ 148,380 Denominator for net income per Unit – basic and diluted: Denominator for net income per Unit – basic 380,663 379,504 Effect of dilutive securities: Dilution for Units issuable upon assumed exercise/vesting of the Company’s long-term compensation shares/units 2,355 2,776 Denominator for net income per Unit – diluted 383,018 382,280 Net income per Unit – basic $ 0.57 $ 0.39 Net income per Unit – diluted $ 0.57 $ 0.39 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Reconciliation of NOI from Rental Real Estate Specific to Continuing Operations | The Quarter Ended March 31, 2018 2017 Rental income $ 632,831 $ 603,920 Property and maintenance expense (108,202 ) (102,608 ) Real estate taxes and insurance expense (91,914 ) (81,728 ) Total operating expenses (200,116 ) (184,336 ) Net operating income $ 432,715 $ 419,584 |
Schedule of NOI for Each Segment from Rental Real Estate Specific to Continuing Operations | The following tables present NOI for each segment from our rental real estate for the quarters ended March 31, 2018 and 2017, March 31, 2018 Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 Rental Income Operating Expenses NOI Rental Income Operating Expenses NOI Same store (1) Los Angeles $ 102,484 $ 29,860 $ 72,624 $ 98,636 $ 28,651 $ 69,985 Orange County 22,502 5,527 16,975 21,656 5,462 16,194 San Diego 22,493 5,963 16,530 21,723 5,799 15,924 Subtotal - Southern California 147,479 41,350 106,129 142,015 39,912 102,103 San Francisco 109,212 26,995 82,217 106,306 26,928 79,378 Washington D.C. 107,155 33,663 73,492 106,443 32,332 74,111 New York 119,626 47,825 71,801 119,363 45,439 73,924 Boston 57,814 16,672 41,142 56,388 15,783 40,605 Seattle 48,611 13,688 34,923 46,425 13,015 33,410 Other Markets 487 165 322 464 196 268 Total same store 590,384 180,358 410,026 577,404 173,605 403,799 Non-same store/other (2) (3) Non-same store 38,622 13,733 24,889 15,961 5,894 10,067 Other (3) 3,825 6,025 (2,200 ) 10,555 4,837 5,718 Total non-same store/other 42,447 19,758 22,689 26,516 10,731 15,785 Totals $ 632,831 $ 200,116 $ 432,715 $ 603,920 $ 184,336 $ 419,584 (1) For the quarters ended March 31, 2018 and 2017, same store primarily includes all properties acquired or completed that were stabilized prior to January 1, 2017, less properties subsequently sold, which represented 72,204 apartment (2) For the quarters ended March 31, 2018 and 2017, non-same store primarily includes properties acquired after January 1, 2017, plus any properties in lease-up and not stabilized as of January 1, (3) Other includes development, other corporate operations and operations prior to disposition for properties sold. Quarter Ended March 31, 2018 Total Assets Capital Expenditures Same store (1) Los Angeles $ 2,670,909 $ 5,939 Orange County 325,898 1,620 San Diego 417,593 1,270 Subtotal - Southern California 3,414,400 8,829 San Francisco 3,020,673 8,743 Washington D.C. 3,771,999 5,964 New York 4,447,994 5,216 Boston 1,637,837 4,358 Seattle 1,306,512 3,048 Other Markets 12,918 77 Total same store 17,612,333 36,235 Non-same store/other (2) (3) Non-same store 2,276,821 454 Other (3) 494,716 58 Total non-same store/other 2,771,537 512 Totals $ 20,383,870 $ 36,747 (1) Same store primarily includes all properties acquired or completed that were stabilized prior to January 1, 2017, less properties subsequently sold, which represented 72,204 apartment (2) Non-same store primarily includes properties acquired after January 1, 2017, plus any properties in lease-up and not stabilized as of January 1, (3) Other includes development, other corporate operations and capital expenditures for properties |
Business - Additional Informati
Business - Additional Information (Details) | Mar. 31, 2018StatePropertyApartmentUnit | Feb. 01, 2018ApartmentUnit |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Number of states in which entity operates | State | 10 | |
Properties | Property | 303 | |
Apartment units | 78,399 | |
Master-Leased Properties – Consolidated | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Properties | Property | 2 | |
Apartment units | 759 | |
Master-Leased Properties – Consolidated | Boston | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Number of self managed apartments | 94 | |
ERPOP [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Noncontrolling interest, ownership percentage by parent | 96.30% |
Business - Ownership Breakdown
Business - Ownership Breakdown (Details) | Mar. 31, 2018PropertyApartmentUnit |
Property/Unit schedule | |
Properties | Property | 303 |
Apartment Units | ApartmentUnit | 78,399 |
Wholly Owned Properties | |
Property/Unit schedule | |
Properties | Property | 282 |
Apartment Units | ApartmentUnit | 73,160 |
Master-Leased Properties – Consolidated | |
Property/Unit schedule | |
Properties | Property | 2 |
Apartment Units | ApartmentUnit | 759 |
Partially Owned Properties – Consolidated | |
Property/Unit schedule | |
Properties | Property | 17 |
Apartment Units | ApartmentUnit | 3,535 |
Partially Owned Properties – Unconsolidated | |
Property/Unit schedule | |
Properties | Property | 2 |
Apartment Units | ApartmentUnit | 945 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Additional Information (Details) | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2017USD ($) | Mar. 31, 2018USD ($)PropertyApartmentUnit | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Provision for income tax | $ 213,000 | $ 262,000 | ||
Percentage of rental income excluded from accounting standard adoption | 94.00% | |||
Percentage of total revenue subject to revenue recognition standard | 6.00% | |||
Properties | Property | 303 | |||
Apartment Units | ApartmentUnit | 78,399 | |||
Noncontrolling interests partially owned properties | $ 1,293,000 | $ 4,708,000 | ||
Partially Owned Properties – Consolidated | ||||
Properties | Property | 17 | |||
Apartment Units | ApartmentUnit | 3,535 | |||
Limited Life Partnership Properties [Member] | ||||
Properties | Property | 4 | |||
Noncontrolling interests equity (deficit) partially owned properties | $ 8,700,000 | |||
Noncontrolling interests settlement value | 66,300,000 | |||
Adjustments for New Accounting Principle, Early Adoption | ||||
Gain (loss) on equity transaction | $ 0 | |||
Federal [Member] | ||||
Provision for income tax | $ 0 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Schedule of Disaggregation of Revenue Streams of Rental Income and Percentage of Rental Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Amount of rental income | $ 632,831 | $ 603,920 |
Percentage of rental income | 100.00% | |
Amount of rental income | $ 592,813 | |
Leasing Revenue [Member} | ||
Percentage of rental income | 93.70% | |
Utility Recoveries [Member] | ||
Amount of rental income | $ 15,375 | |
Percentage of rental income | 2.40% | |
Parking Revenue [Member] | ||
Amount of rental income | $ 7,797 | |
Percentage of rental income | 1.20% | |
Other Revenue [Member] | ||
Amount of rental income | $ 16,846 | |
Percentage of rental income | 2.70% |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Schedule of Material Changes Between Cash Flow Classifications due to Substantial Debt Prepayment Penalties (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Amortization of discounts and premiums on debt | $ 1,532 | $ 1,130 |
Net (gain) loss on debt extinguishment | 22,110 | 11,698 |
Net cash provided by operating activities | 361,018 | 303,904 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net cash provided by (used for) investing activities | 147,298 | (72,642) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Commercial paper proceeds | 1,107,561 | 1,310,188 |
Net cash (used for) financing activities | (514,367) | (264,127) |
Cash and cash equivalents, beginning of period | 50,647 | |
Cash and cash equivalents and restricted deposits, beginning of period | 100,762 | 219,088 |
Cash and cash equivalents, end of period | 44,453 | 42,139 |
Cash and cash equivalents and restricted deposits, end of period | 94,711 | 186,223 |
Mortgage Notes Payable, Net [Member] | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Mortgage notes payable, net: Net gain (loss) on debt extinguishment | $ (22,110) | (11,698) |
Scenario, Previously Reported [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Amortization of discounts and premiums on debt | 1,637 | |
(Increase) decrease in deposits - restricted | 256 | |
(Increase) decrease in mortgage deposits | 315 | |
Net cash provided by operating activities | 293,284 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
(Increase) decrease in deposits on real estate acquisitions and investments, net | 637 | |
(Increase) decrease in mortgage deposits | (1,030) | |
Net cash provided by (used for) investing activities | (73,035) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Mortgage deposits | (2,381) | |
Commercial paper proceeds | 1,309,681 | |
Net cash (used for) financing activities | (255,317) | |
Cash and cash equivalents, beginning of period | 77,207 | |
Cash and cash equivalents, end of period | 42,139 | |
Reclassification Adjustments [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Amortization of discounts and premiums on debt | (507) | |
Net (gain) loss on debt extinguishment | 11,698 | |
(Increase) decrease in deposits - restricted | (256) | |
(Increase) decrease in mortgage deposits | (315) | |
Net cash provided by operating activities | 10,620 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
(Increase) decrease in deposits on real estate acquisitions and investments, net | (637) | |
(Increase) decrease in mortgage deposits | 1,030 | |
Net cash provided by (used for) investing activities | 393 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Mortgage deposits | 2,381 | |
Commercial paper proceeds | 507 | |
Net cash (used for) financing activities | (8,810) | |
(adjustments for restricted deposits, beginning of period) | 141,881 | |
(adjustments for restricted deposits, end of period) | 144,084 | |
Reclassification Adjustments [Member] | Mortgage Notes Payable, Net [Member] | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Mortgage notes payable, net: Net gain (loss) on debt extinguishment | $ (11,698) |
Equity, Capital and Other Int42
Equity, Capital and Other Interests - Changes in Issued and Outstanding Common Shares and Units (Details) | 3 Months Ended |
Mar. 31, 2018shares | |
Equity Capital And Other Interests [Abstract] | |
Common Stock, Shares, Outstanding | 368,018,082 |
Common Shares Issued: | |
Conversion of OP Units | 5,000 |
Exercise of share options | 45,391 |
Employee Share Purchase Plan (ESPP) | 35,177 |
Restricted share grants, net | 108,261 |
Common Stock, Shares, Outstanding | 368,211,911 |
Units | |
Total Units Outstanding | 13,768,438 |
Restricted unit grants, net | 263,048 |
Conversion of OP Units to Common Shares | (5,000) |
Total Units Outstanding | 14,026,486 |
Common Shares And Units Outstanding | 382,238,397 |
Units Ownership Interest in Operating Partnership | 3.70% |
Equity, Capital and Other Int43
Equity, Capital and Other Interests - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Class Of Stock [Line Items] | ||
Redeemable noncontrolling interests – operating partnership | $ 354,567 | $ 366,955 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, par or stated value per share | $ 0.01 | $ 0.01 |
ERPOP [Member] | ||
Class Of Stock [Line Items] | ||
Redeemable Limited Partners | $ 354,567 | $ 366,955 |
Equity, Capital and Other Int44
Equity, Capital and Other Interests - Changes in Redemption Value of Redeemable Noncontrolling Interests - Operating Partnership (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Equity Capital And Other Interests [Abstract] | |
Redeemable Noncontrolling Interests – Operating Partnership | $ 366,955 |
Change in market value of Redeemable Noncontrolling Interests – Operating Partnership | (12,831) |
Change in carrying value of Redeemable Noncontrolling Interests - Operating Partnership | 443 |
Redeemable Noncontrolling Interests – Operating Partnership | $ 354,567 |
Equity, Capital and Other Int45
Equity, Capital and Other Interests - Issued and Outstanding Preferred Shares and Preference Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Class Of Stock [Line Items] | ||
8.29% Series K Cumulative Redeemable Preferred; liquidation value $50 per share; 745,600 shares issued and outstanding as of March 31, 2018 and December 31, 2017 | $ 37,280 | $ 37,280 |
ERPOP [Member] | ||
Class Of Stock [Line Items] | ||
8.29% Series K Cumulative Redeemable Preferred; liquidation value $50 per share; 745,600 shares issued and outstanding as of March 31, 2018 and December 31, 2017 | $ 37,280 | 37,280 |
Preferred Stock | ||
Class Of Stock [Line Items] | ||
Preferred Stocks Preference Units Call Date | Dec. 10, 2026 | |
Annual Dividend Per Preferred Share Preference Unit | $ 4.145 | |
8.29% Series K Cumulative Redeemable Preferred; liquidation value $50 per share; 745,600 shares issued and outstanding as of March 31, 2018 and December 31, 2017 | $ 37,280 | 37,280 |
Preferred Stock | ERPOP [Member] | ||
Class Of Stock [Line Items] | ||
Preferred Stocks Preference Units Call Date | Dec. 10, 2026 | |
Annual Dividend Per Preferred Share Preference Unit | $ 4.145 | |
8.29% Series K Cumulative Redeemable Preferred; liquidation value $50 per share; 745,600 shares issued and outstanding as of March 31, 2018 and December 31, 2017 | $ 37,280 | $ 37,280 |
Equity, Capital and Other Int46
Equity, Capital and Other Interests - Issued and Outstanding Preferred Shares and Preference Units (Parenthetical) (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Class Of Stock [Line Items] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Preferred Stock | ||
Class Of Stock [Line Items] | ||
Preferred Stock Preference Units Issued | 745,600 | 745,600 |
Preferred Stock Preference Units Outstanding | 745,600 | 745,600 |
Preferred Stock Preference Units Redemption Price Per Share | $ 50 | $ 50 |
Preferred Stock Preference Units Dividend Rate Percentage | 8.29% | 8.29% |
Preferred Stock | ERPOP [Member] | ||
Class Of Stock [Line Items] | ||
Preferred Stock Preference Units Issued | 745,600 | 745,600 |
Preferred Stock Preference Units Outstanding | 745,600 | 745,600 |
Preferred Stock Preference Units Redemption Price Per Share | $ 50 | $ 50 |
Preferred Stock Preference Units Dividend Rate Percentage | 8.29% | 8.29% |
Equity, Capital and Other Int47
Equity, Capital and Other Interests - Changes in Operating Partnership's Issued and Outstanding Units (Details) | 3 Months Ended |
Mar. 31, 2018shares | |
General and Limited Partner Units | |
Exercise of share options | 45,391 |
Employee Share Purchase Plan (ESPP) | 35,177 |
Restricted share grants, net | 108,261 |
Restricted unit grants, net | 263,048 |
Common Shares And Units Outstanding | 382,238,397 |
LIMITED PARTNERS | |
Total Units Outstanding | 13,768,438 |
Restricted unit grants, net | 263,048 |
Conversion of Limited Partner OP Units to EQR Common Shares | (5,000) |
Total Units Outstanding | 14,026,486 |
Units Ownership Interest in Operating Partnership | 3.70% |
ERPOP [Member] | |
General and Limited Partner Units | |
Common Shares And Units Outstanding | 381,786,520 |
Exercise of share options | 45,391 |
Employee Share Purchase Plan (ESPP) | 35,177 |
Restricted share grants, net | 108,261 |
Restricted unit grants, net | 263,048 |
Common Shares And Units Outstanding | 382,238,397 |
LIMITED PARTNERS | |
Total Units Outstanding | 13,768,438 |
Restricted unit grants, net | 263,048 |
Conversion of Limited Partner OP Units to EQR Common Shares | (5,000) |
Total Units Outstanding | 14,026,486 |
Units Ownership Interest in Operating Partnership | 3.70% |
Equity, Capital and Other Int48
Equity, Capital and Other Interests - Changes in Redemption Value of Redeemable Limited Partners Interest (Details) - ERPOP [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Redeemable Limited Partners | $ 366,955 |
Limited Partners Change In Redemption Value | (12,831) |
Limited Partners Change In Carrying Value | 443 |
Redeemable Limited Partners | $ 354,567 |
Equity, Capital and Other Int49
Equity, Capital and Other Interests - Other - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2018shares | |
Equity Capital And Other Interests [Abstract] | |
Additional common shares authorized | 13,000,000 |
Stock repurchase program, number of shares authorized to be repurchased | 13,000,000 |
Stock repurchased and retired during period, shares | 0 |
Real Estate and Lease Intangi50
Real Estate and Lease Intangibles - Summary of Carrying Amounts of Investment in Real Estate (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Land | $ 5,960,804 | $ 5,996,024 |
Depreciable property: | ||
Buildings and improvements | 17,748,897 | 17,743,042 |
Furniture, fixtures and equipment | 1,575,934 | 1,548,961 |
In-Place lease intangibles | 473,522 | 476,359 |
Projects under development: | ||
Construction-in-progress | 96,609 | 163,547 |
Land held for development: | ||
Land | 102,851 | 98,963 |
Construction-in-progress | 96,609 | 163,547 |
Investment in real estate | 25,958,617 | 26,026,896 |
Accumulated depreciation | (6,173,047) | (6,040,378) |
Investment in real estate, net | 19,785,570 | 19,986,518 |
Projects under development [Member] | ||
Projects under development: | ||
Land | 30,605 | 43,226 |
Construction-in-progress | 66,004 | 120,321 |
Land held for development: | ||
Construction-in-progress | 66,004 | 120,321 |
Land held for development [Member] | ||
Projects under development: | ||
Construction-in-progress | 40,313 | 36,425 |
Land held for development: | ||
Land | 62,538 | 62,538 |
Construction-in-progress | $ 40,313 | $ 36,425 |
Real Estate and Lease Intangi51
Real Estate and Lease Intangibles - Summary of Carrying Amounts of Above and Below Market Ground And Retail Lease Intangibles (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Other Assets [Member] | ||
Lease intangible assets | $ 193,178 | $ 193,178 |
Finite-Lived Intangible Assets, Accumulated Amortization | (23,562) | (22,434) |
Lease intangible assets, net | 169,616 | 170,744 |
Other Assets [Member] | Ground Lease [Member] | ||
Finite-Lived Intangible Asset, Off-market Lease, Favorable, Gross | 191,918 | 191,918 |
Other Assets [Member] | Retail Lease [Member] | ||
Finite-Lived Intangible Asset, Off-market Lease, Favorable, Gross | 1,260 | 1,260 |
Other Liabilities [Member] | ||
Lease Intangible Liabilities | 7,670 | 7,670 |
Finite Lived Intangible Liabilities Accumulated Amortization | (5,173) | (5,143) |
Lease intangible liabilities, net | 2,497 | 2,527 |
Other Liabilities [Member] | Ground Lease [Member] | ||
Finite-Lived Intangible Liabilities, Off-market Lease, Unfavorable, Gross | 2,400 | 2,400 |
Other Liabilities [Member] | Retail Lease [Member] | ||
Finite-Lived Intangible Liabilities, Off-market Lease, Unfavorable, Gross | $ 5,270 | $ 5,270 |
Real Estate and Lease Intangi52
Real Estate and Lease Intangibles - Summary of the Effect of the Amortization for Above and Below Market Ground and Retail Lease Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Total amortization of above/below market lease intangibles | $ (1,098) | $ (856) |
Ground Lease [Member] | Property and Maintenance [Member] | ||
Total amortization of above/below market lease intangibles | (1,116) | (1,080) |
Retail Lease [Member] | Rental Income [Member] | ||
Total amortization of above/below market lease intangibles | $ 18 | $ 224 |
Real Estate and Lease Intangi53
Real Estate and Lease Intangibles - Summary of Aggregate Amortization for Above and Below Market Ground And Retail Lease Intangibles (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Finite-lived intangible assets, amortization expense, remainder of fiscal year 2018 | $ (3,294) |
Finite-Lived Intangible Assets, Amortization Expense, Year 2019 | (4,392) |
Finite-lived intangible assets, amortization expense, year 2020 | (4,392) |
Finite-lived intangible assets, amortization expense, year 2021 | (4,392) |
Finite-lived intangible assets, amortization expense, year 2022 | (4,436) |
Finite-lived intangible assets, amortization expense, year 2023 | (4,444) |
Ground Lease [Member] | |
Finite-lived intangible assets, amortization expense, remainder of fiscal year 2018 | (3,347) |
Finite-Lived Intangible Assets, Amortization Expense, Year 2019 | (4,463) |
Finite-lived intangible assets, amortization expense, year 2020 | (4,463) |
Finite-lived intangible assets, amortization expense, year 2021 | (4,463) |
Finite-lived intangible assets, amortization expense, year 2022 | (4,463) |
Finite-lived intangible assets, amortization expense, year 2023 | (4,463) |
Retail Lease [Member] | |
Finite lived intangible assets amortization income, reminder of fiscal year 2018 | 53 |
Finite-lived intangible assets; amortization income, year 2019 | 71 |
Finite-lived intangible assets; amortization income, year 2020 | 71 |
Finite-lived intangible assets; amortization income, year 2021 | 71 |
Finite-lived intangible assets; amortization income, year 2022 | 27 |
Finite-lived intangible assets; amortization income, year 2023 | $ 19 |
Real Estate and Lease Intangi54
Real Estate and Lease Intangibles - Real Estate Acquisitions and Dispositions (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)PropertyApartmentUnit | |
Properties acquired | Property | 1 |
Property Units acquired | ApartmentUnit | 117 |
Purchase Price | $ | $ 53,700 |
Properties disposed | Property | 4 |
Property Units disposed | ApartmentUnit | 786 |
Sales Price | $ | $ 290,020 |
Rental Properties - Consolidated [Member] | |
Properties acquired | Property | 1 |
Property Units acquired | ApartmentUnit | 117 |
Purchase Price | $ | $ 53,700 |
Properties disposed | Property | 4 |
Property Units disposed | ApartmentUnit | 786 |
Sales Price | $ | $ 290,020 |
Real Estate and Lease Intangi55
Real Estate and Lease Intangibles - Real Estate Acquisitions and Dispositions (Parenthetical) (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Purchase Price | $ 53,700 |
Land [Member] | |
Purchase Price | 14,800 |
Depreciable Property [Member] | |
Purchase Price | $ 39,300 |
Real Estate and Lease Intangi56
Real Estate and Lease Intangibles - Acquisitions and Dispositions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Real Estate [Abstract] | ||
Net gain on sales of real estate properties | $ 142,213 | $ 36,707 |
Commitments to Acquire_Dispos57
Commitments to Acquire/Dispose of Real Estate - Separate Agreement to Dispose of (Details) - Subsequent Event [Member] $ in Thousands | Apr. 27, 2018USD ($) |
Property/Unit schedule | |
Sales Price | $ 2,700 |
Land [Member] | |
Property/Unit schedule | |
Sales Price | $ 2,700 |
Commitments to Acquire_Dispos58
Commitments to Acquire/Dispose of Real Estate - Separate Agreement to Dispose of (Parenthetical) (Details) | Apr. 27, 2018Land |
Subsequent Event [Member] | Land [Member] | |
Property/Unit schedule | |
Land Parcels | 1 |
Investments in Partially Owne59
Investments in Partially Owned Entities - Partially Owned Property Balance Sheet Schedule (Details) $ in Thousands | Mar. 31, 2018USD ($)PropertyApartmentUnit | Dec. 31, 2017USD ($) | Mar. 31, 2017USD ($) |
Partially Owned Property Balance Sheet Schedule | |||
Total properties | Property | 303 | ||
Apartment Units | ApartmentUnit | 78,399 | ||
ASSETS | |||
Investment in real estate | $ 25,958,617 | $ 26,026,896 | |
Accumulated depreciation | (6,173,047) | (6,040,378) | |
Investment in real estate, net | 19,785,570 | 19,986,518 | |
Cash and cash equivalents | 44,453 | 50,647 | $ 42,139 |
Investments in unconsolidated entities | 59,091 | 58,254 | |
Restricted deposits | 50,258 | 50,115 | $ 144,084 |
Other assets | 444,498 | 425,065 | |
Total assets | 20,383,870 | 20,570,599 | |
LIABILITIES AND EQUITY | |||
Mortgage notes payable, net | 2,894,344 | 3,618,722 | |
Accounts payable and accrued expenses | 167,481 | 114,766 | |
Accrued interest payable | 69,753 | 58,035 | |
Other liabilities | 335,957 | 341,852 | |
Security deposits | 64,748 | 65,009 | |
Total liabilities | 9,504,210 | 9,729,781 | |
Partially Owned Properties | 1,293 | 4,708 | |
Total equity | 10,525,093 | 10,473,863 | |
Total liabilities and equity/capital | $ 20,383,870 | $ 20,570,599 | |
Unconsolidated Non-VIE | |||
Partially Owned Property Balance Sheet Schedule | |||
Total properties | Property | 2 | ||
Apartment Units | ApartmentUnit | 945 | ||
ASSETS | |||
Investment in real estate | $ 236,854 | ||
Accumulated depreciation | (46,190) | ||
Investment in real estate, net | 190,664 | ||
Cash and cash equivalents | 6,587 | ||
Investments in unconsolidated entities | 0 | ||
Restricted deposits | 258 | ||
Other assets | 243 | ||
Total assets | 197,752 | ||
LIABILITIES AND EQUITY | |||
Mortgage notes payable, net | 145,424 | ||
Accounts payable and accrued expenses | 1,361 | ||
Accrued interest payable | 691 | ||
Other liabilities | 261 | ||
Security deposits | 525 | ||
Total liabilities | 148,262 | ||
Partially Owned Properties | 51,079 | ||
Company equity/General and Limited Partners’ Capital | (1,589) | ||
Total equity | 49,490 | ||
Total liabilities and equity/capital | $ 197,752 | ||
Consolidated VIE | |||
Partially Owned Property Balance Sheet Schedule | |||
Total properties | Property | 17 | ||
Apartment Units | ApartmentUnit | 3,535 | ||
ASSETS | |||
Investment in real estate | $ 875,187 | ||
Accumulated depreciation | (235,426) | ||
Investment in real estate, net | 639,761 | ||
Cash and cash equivalents | 13,061 | ||
Investments in unconsolidated entities | 43,926 | ||
Restricted deposits | 381 | ||
Other assets | 25,879 | ||
Total assets | 723,008 | ||
LIABILITIES AND EQUITY | |||
Mortgage notes payable, net | 302,656 | ||
Accounts payable and accrued expenses | 3,344 | ||
Accrued interest payable | 1,037 | ||
Other liabilities | 3,683 | ||
Security deposits | 2,470 | ||
Total liabilities | 313,190 | ||
Partially Owned Properties | 1,293 | ||
Company equity/General and Limited Partners’ Capital | 408,525 | ||
Total equity | 409,818 | ||
Total liabilities and equity/capital | $ 723,008 | ||
Unconsolidated VIE | |||
Partially Owned Property Balance Sheet Schedule | |||
Total properties | Property | 0 | ||
Apartment Units | ApartmentUnit | 0 | ||
ASSETS | |||
Investment in real estate | $ 172,995 | ||
Accumulated depreciation | (51,420) | ||
Investment in real estate, net | 121,575 | ||
Cash and cash equivalents | 225 | ||
Investments in unconsolidated entities | 0 | ||
Restricted deposits | 0 | ||
Other assets | 320 | ||
Total assets | 122,120 | ||
LIABILITIES AND EQUITY | |||
Mortgage notes payable, net | 0 | ||
Accounts payable and accrued expenses | 115 | ||
Accrued interest payable | 0 | ||
Other liabilities | 15 | ||
Security deposits | 0 | ||
Total liabilities | 130 | ||
Partially Owned Properties | 84,038 | ||
Company equity/General and Limited Partners’ Capital | 37,952 | ||
Total equity | 121,990 | ||
Total liabilities and equity/capital | $ 122,120 | ||
Partially Owned Properties – Unconsolidated | |||
Partially Owned Property Balance Sheet Schedule | |||
Total properties | Property | 2 | ||
Apartment Units | ApartmentUnit | 945 | ||
ASSETS | |||
Investment in real estate | $ 409,849 | ||
Accumulated depreciation | (97,610) | ||
Investment in real estate, net | 312,239 | ||
Cash and cash equivalents | 6,812 | ||
Investments in unconsolidated entities | 0 | ||
Restricted deposits | 258 | ||
Other assets | 563 | ||
Total assets | 319,872 | ||
LIABILITIES AND EQUITY | |||
Mortgage notes payable, net | 145,424 | ||
Accounts payable and accrued expenses | 1,476 | ||
Accrued interest payable | 691 | ||
Other liabilities | 276 | ||
Security deposits | 525 | ||
Total liabilities | 148,392 | ||
Partially Owned Properties | 135,117 | ||
Company equity/General and Limited Partners’ Capital | 36,363 | ||
Total equity | 171,480 | ||
Total liabilities and equity/capital | $ 319,872 |
Investments in Partially Owne60
Investments in Partially Owned Entities - Partially Owned Property Income Statement Schedule (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Partially Owned Property Income Statement Schedule | ||
Operating revenue | $ 633,016 | $ 604,100 |
Property management | 23,444 | 22,252 |
General and administrative | 16,278 | 14,173 |
Depreciation | 196,309 | 178,968 |
Operating income | 196,869 | 204,371 |
Interest and other income | 5,880 | 601 |
Interest: | ||
Expense incurred, net | (116,104) | (106,210) |
Amortization of deferred financing costs | (3,679) | (2,296) |
Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of real estate properties and land parcels | 79,525 | 95,376 |
Income and other tax (expense) benefit | (213) | (262) |
Income (loss) from investments in unconsolidated entities | (977) | (1,073) |
Net income | 220,548 | $ 149,941 |
Unconsolidated Non-VIE | ||
Partially Owned Property Income Statement Schedule | ||
Operating revenue | 6,942 | |
Operating expenses | 2,268 | |
Net operating income | 4,674 | |
Property management | 199 | |
General and administrative | 0 | |
Depreciation | 2,677 | |
Operating income | 1,798 | |
Interest and other income | 0 | |
Interest: | ||
Expense incurred, net | (2,072) | |
Amortization of deferred financing costs | 0 | |
Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of real estate properties and land parcels | (274) | |
Income and other tax (expense) benefit | (13) | |
Income (loss) from investments in unconsolidated entities | 0 | |
Net income | (287) | |
Consolidated VIE | ||
Partially Owned Property Income Statement Schedule | ||
Operating revenue | 26,447 | |
Operating expenses | 6,637 | |
Net operating income | 19,810 | |
Property management | 955 | |
General and administrative | 17 | |
Depreciation | 10,479 | |
Operating income | 8,359 | |
Interest and other income | 27 | |
Interest: | ||
Expense incurred, net | (3,312) | |
Amortization of deferred financing costs | (68) | |
Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of real estate properties and land parcels | 5,006 | |
Income and other tax (expense) benefit | (18) | |
Income (loss) from investments in unconsolidated entities | (393) | |
Net income | 4,595 | |
Unconsolidated VIE | ||
Partially Owned Property Income Statement Schedule | ||
Operating revenue | 1,258 | |
Operating expenses | 581 | |
Net operating income | 677 | |
Property management | 19 | |
General and administrative | 0 | |
Depreciation | 1,375 | |
Operating income | (717) | |
Interest and other income | 0 | |
Interest: | ||
Expense incurred, net | 0 | |
Amortization of deferred financing costs | 0 | |
Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of real estate properties and land parcels | (717) | |
Income and other tax (expense) benefit | 0 | |
Income (loss) from investments in unconsolidated entities | 0 | |
Net income | (717) | |
Partially Owned Properties – Unconsolidated | ||
Partially Owned Property Income Statement Schedule | ||
Operating revenue | 8,200 | |
Operating expenses | 2,849 | |
Net operating income | 5,351 | |
Property management | 218 | |
General and administrative | 0 | |
Depreciation | 4,052 | |
Operating income | 1,081 | |
Interest and other income | 0 | |
Interest: | ||
Expense incurred, net | (2,072) | |
Amortization of deferred financing costs | 0 | |
Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of real estate properties and land parcels | (991) | |
Income and other tax (expense) benefit | (13) | |
Income (loss) from investments in unconsolidated entities | 0 | |
Net income | $ (1,004) |
Investments in Partially Owne61
Investments in Partially Owned Entities - Partially Owned Property Income Statement Schedule (Parenthetical) (Details) - Unconsolidated Non-VIE $ in Millions | Mar. 31, 2018USD ($) |
Legacy JV [Member] | |
Liquidation Value Preferred Interests | $ 37.3 |
PARTIALLY OWNED PROPERTIES | |
Joint venture ownership percentage owned by company | 60.00% |
Residual JV [Member] | |
PARTIALLY OWNED PROPERTIES | |
Joint venture ownership percentage owned by company | 60.00% |
Investments in Partially Owne62
Investments in Partially Owned Entities - Operating Properties - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)PropertyApartmentUnit | Dec. 31, 2017USD ($) | |
Variable Interest Entity [Line Items] | ||
Properties | Property | 303 | |
Apartment units | ApartmentUnit | 78,399 | |
Investments in unconsolidated entities | $ 59,091 | $ 58,254 |
Secured Debt | $ 2,894,344 | $ 3,618,722 |
Debt instrument, maturity date | Jan. 10, 2022 | |
Nexus Sawgrass [Member] | ||
Variable Interest Entity [Line Items] | ||
Apartment units | ApartmentUnit | 501 | |
Investments in unconsolidated entities | $ 4,000 | |
Equity Method Investment, Ownership Percentage | 20.00% | |
Secured Debt | $ 48,600 | |
Debt instrument, interest rate, stated percentage | 5.60% | |
Debt instrument, maturity date | Jan. 1, 2021 | |
Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Properties | Property | 17 | |
Apartment units | ApartmentUnit | 3,535 | |
Investments in unconsolidated entities | $ 43,926 | |
Secured Debt | $ 302,656 | |
Unconsolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Properties | Property | 0 | |
Apartment units | ApartmentUnit | 0 | |
Investments in unconsolidated entities | $ 0 | |
Secured Debt | $ 0 | |
Operating Property [Member] | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Properties | Property | 16 | |
Apartment units | ApartmentUnit | 3,103 | |
Wisconsin Place [Member] | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Apartment units | ApartmentUnit | 432 | |
Joint venture ownership percentage owned by company | 75.00% | |
Basis of joint venture | $ 159,400 | |
Wisconsin Place [Member] | Unconsolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated entities | $ 43,900 | |
Domain [Member] | ||
Variable Interest Entity [Line Items] | ||
Apartment units | ApartmentUnit | 444 | |
Investments in unconsolidated entities | $ 7,900 | |
Equity Method Investment, Ownership Percentage | 20.00% | |
Secured Debt | $ 96,800 | |
Debt instrument, interest rate, stated percentage | 5.75% | |
Debt instrument, maturity date | Jan. 1, 2022 |
Investments in Partially Owne63
Investments in Partially Owned Entities - Other - Additional Information (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated entities | $ 59,091,000 | $ 58,254,000 |
Unconsolidated Non-VIE | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated entities | 0 | |
Unconsolidated Non-VIE | Residual JV [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated entities | $ 800,000 | |
Joint venture ownership percentage owned by company | 60.00% | |
Joint venture partner ownership percentage | 40.00% | |
Unconsolidated Non-VIE | Legacy JV [Member] | ||
Variable Interest Entity [Line Items] | ||
Joint venture ownership percentage owned by company | 60.00% | |
Joint venture partner ownership percentage | 40.00% | |
Liquidation Value Preferred Interests | $ 37,300,000 | |
Private Equity Fund | Capital Commitment | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated entities | 4,100,000 | |
Private Equity Fund | Maximum [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated entities | $ 5,000,000 |
Restricted Deposits - Restricte
Restricted Deposits - Restricted Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Mortgage escrow deposits: | |||
Real estate taxes and insurance | $ 1,279 | $ 845 | |
Replacement reserves | 7,423 | 8,347 | |
Mortgage principal reserves/sinking funds | 4,778 | 3,167 | |
Other | 852 | 852 | |
Mortgage escrow deposits | 14,332 | 13,211 | |
Restricted cash: | |||
Earnest money on pending acquisitions | 750 | ||
Restricted deposits on real estate investments | 53 | 58 | |
Resident security and utility deposits | 34,967 | 35,183 | |
Other | 906 | 913 | |
Restricted cash | 35,926 | 36,904 | |
Restricted deposits | $ 50,258 | $ 50,115 | $ 144,084 |
Debt - Mortgage Notes Payable -
Debt - Mortgage Notes Payable - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Mortgage notes payable | $ 2,894,344 | $ 3,618,722 |
Debt instrument, maturity date | Jan. 10, 2022 | |
Mortgages [Member] | ||
Debt Instrument [Line Items] | ||
Repayments of long-term debt | $ 1,700 | |
Write off of deferred debt issuance cost | 1,600 | |
Write off unamortized (premium) discount | $ (200) | |
Debt instrument, maturity date | May 28, 2061 | |
Weighted average interest rate | 4.24% | |
Mortgages [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 0.10% | |
Mortgages [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 6.90% | |
Conventional Mortgage Loan [Member] | ||
Debt Instrument [Line Items] | ||
Repayments of long-term debt | $ 43,700 | |
Debt instrument, maturity year | 2,018 | |
Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Repayments of long-term debt | $ 131,900 | |
Debt instrument maturity year, start | 2,028 | |
Debt instrument maturity year, end | 2,042 | |
Credit enhanced debt [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage notes payable | $ 563,500 | |
Fannie Mae Pool 3 [Member] | Mortgages [Member] | ||
Debt Instrument [Line Items] | ||
Repayments of long-term debt | $ 550,000 | |
Debt instrument, interest rate, stated percentage | 6.08% | |
Debt instrument, maturity year | 2,020 | |
Prepayment penalty charges | $ 22,100 |
Debt - Notes - Additional Infor
Debt - Notes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Unsecured notes | $ 5,530,815 | $ 5,038,812 |
Debt instrument, maturity date | Jan. 10, 2022 | |
3.50% Notes [Member] | ||
Debt Instrument [Line Items] | ||
Proceeds from issuance of unsecured debt | $ 500,000 | |
Debt instrument, interest rate, stated percentage | 3.50% | |
Proceeds from debt, net of issuance costs | $ 497,000 | |
Debt instrument, interest rate, effective percentage | 3.61% | |
Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Aug. 1, 2047 | |
Weighted average interest rate | 4.28% | |
Notes Payable, Other Payables [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 2.375% | |
Notes Payable, Other Payables [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 7.57% |
Debt - Line of Credit and Comme
Debt - Line of Credit and Commercial Paper - Additional Information (Details) - USD ($) | Nov. 03, 2016 | Mar. 31, 2018 | Nov. 02, 2016 | Feb. 02, 2015 |
Line of Credit Facility [Line Items] | ||||
Debt instrument, maturity date | Jan. 10, 2022 | |||
Commercial Paper [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Unsecured revolving credit facility | $ 500,000,000 | |||
Commercial paper, net | $ 234,300,000 | |||
commercial paper principal outstanding | 235,000,000 | |||
Unamortized discount | $ 700,000 | |||
Weighted average interest rate | 1.94% | |||
Commercial paper weighted average days outstanding | 46 days | |||
Commercial paper principal outstanding | $ 235,000,000 | |||
Unsecured Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Unsecured revolving credit facility | $ 2,000,000,000 | $ 2,500,000,000 | ||
Ability to increase LOC facility | $ 750,000,000 | |||
Debt instrument, basis spread on variable rate | 0.825% | |||
Percentage points of line of credit facility commitment fee | 0.125% | |||
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Weighted average interest rate | 2.29% | |||
Remaining borrowing capacity | $ 1,720,000,000 | |||
Amount restricted/dedicated to support letters of credit | $ 41,600,000 |
Debt - Other - Additional Infor
Debt - Other - Additional Information (Details) $ in Millions | Mar. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
Letters of credit outstanding | $ 9 |
Derivative and Other Fair Val69
Derivative and Other Fair Value Instruments - Summary of Carrying and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt, net | $ 8,719,288 | $ 9,235,128 |
Carrying Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt, net | 8,659,477 | 8,957,291 |
Mortgage Notes Payable, Net [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt, net | 2,841,288 | 3,615,384 |
Mortgage Notes Payable, Net [Member] | Carrying Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt, net | 2,894,344 | 3,618,722 |
Unsecured Debt [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt, net | 5,878,000 | 5,619,744 |
Unsecured Debt [Member] | Carrying Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt, net | $ 5,765,133 | $ 5,338,569 |
Derivative and Other Fair Val70
Derivative and Other Fair Value Instruments - Summary of Consolidated Derivative Instruments (Details) | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Fair Value Hedges [Member] | |
Derivative [Line Items] | |
Current Notional Balance | $ 450,000,000 |
Earliest Maturity Date | 2,019 |
Latest Maturity Date | 2,019 |
Fair Value Hedges [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Interest Rate | 2.375% |
Fair Value Hedges [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Interest Rate | 2.375% |
Forward Starting Swaps [Member] | |
Derivative [Line Items] | |
Current Notional Balance | $ 600,000,000 |
Earliest Maturity Date | 2,028 |
Latest Maturity Date | 2,029 |
Forward Starting Swaps [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Interest Rate | 2.1478% |
Forward Starting Swaps [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Interest Rate | 3.003% |
Derivative and Other Fair Val71
Derivative and Other Fair Value Instruments - Summary of Consolidated Derivative Instruments (Parenthetical) (Details) | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Derivative [Line Items] | |
Debt instrument, maturity date | Jan. 10, 2022 |
Forward Starting Swaps [Member] | |
Derivative [Line Items] | |
Current Notional Balance | $ 600,000,000 |
Forward Starting Swaps Mandatory Counterparty Terminations in 2019 [Member] | |
Derivative [Line Items] | |
Current Notional Balance | 250,000,000 |
Forward Starting Swaps Mandatory Counterparty Terminations in 2020 [Member] | |
Derivative [Line Items] | |
Current Notional Balance | 350,000,000 |
2.375% Notes [Member] | |
Derivative [Line Items] | |
Proceeds from issuance of unsecured debt | $ 450,000,000 |
Debt instrument, interest rate, stated percentage | 2.375% |
Debt instrument, maturity date | Jul. 1, 2019 |
2.375% Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Derivative [Line Items] | |
Debt instrument, basis spread on variable rate | 0.61% |
Debt instrument, description of variable rate basis | 90-Day LIBOR |
Derivative and Other Fair Val72
Derivative and Other Fair Value Instruments - Summary of Fair Value Measurements for Each Major Category of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Fair Value Of SERP Investments | $ 138,444 | $ 140,159 |
Assets, Fair Value Disclosure | 151,081 | 145,302 |
Other Liabilities, Fair Value Disclosure | 138,444 | 140,159 |
Liabilities, Fair Value Disclosure | 145,375 | 141,756 |
Redeemable Noncontrolling Interests - Operating Partnership/Redeemable Limited Partners | 354,567 | 366,955 |
Fair Value Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 3,886 | 1,597 |
Forward Starting Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 12,637 | 5,143 |
Other Liabilities, Forward Starting Swaps | 3,045 | |
Fair Value, Inputs, Level 1 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Of SERP Investments | 138,444 | 140,159 |
Assets, Fair Value Disclosure | 138,444 | 140,159 |
Other Liabilities, Fair Value Disclosure | 138,444 | 140,159 |
Liabilities, Fair Value Disclosure | 138,444 | 140,159 |
Redeemable Noncontrolling Interests - Operating Partnership/Redeemable Limited Partners | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Forward Starting Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0 | 0 |
Other Liabilities, Forward Starting Swaps | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Of SERP Investments | 0 | 0 |
Assets, Fair Value Disclosure | 12,637 | 5,143 |
Other Liabilities, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | 6,931 | 1,597 |
Redeemable Noncontrolling Interests - Operating Partnership/Redeemable Limited Partners | 354,567 | 366,955 |
Fair Value, Inputs, Level 2 [Member] | Fair Value Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 3,886 | 1,597 |
Fair Value, Inputs, Level 2 [Member] | Forward Starting Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 12,637 | 5,143 |
Other Liabilities, Forward Starting Swaps | 3,045 | |
Fair Value, Inputs, Level 3 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Of SERP Investments | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Other Liabilities, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | 0 | 0 |
Redeemable Noncontrolling Interests - Operating Partnership/Redeemable Limited Partners | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Forward Starting Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0 | $ 0 |
Other Liabilities, Forward Starting Swaps | $ 0 |
Derivative and Other Fair Val73
Derivative and Other Fair Value Instruments - Summary of Effect of Fair Value Hedges on the Accompanying Consolidated Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in Income on Derivative | $ (2,289) | $ (1,106) |
Amount of Gain/(Loss) Recognized in Income on Hedged Item | 2,289 | 1,106 |
Interest Rate Swap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in Income on Derivative | (2,289) | (1,106) |
Amount of Gain/(Loss) Recognized in Income on Hedged Item | $ 2,289 | $ 1,106 |
Derivative and Other Fair Val74
Derivative and Other Fair Value Instruments - Summary of Effect of Cash Flow Hedges on the Accompanying Consolidated Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effective Portion - Amount of Gain/(Loss) Recognized in OCI on Derivative | $ 6,087 | $ 0 |
Effective Portion - Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income | (4,791) | (4,583) |
Ineffective Portion - Amount of Gain/ (Loss) Reclassified from Accumulated OCI into Income | 0 | 0 |
Forward Starting Swaps [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effective Portion - Amount of Gain/(Loss) Recognized in OCI on Derivative | 6,087 | 0 |
Effective Portion - Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income | (4,791) | (4,583) |
Ineffective Portion - Amount of Gain/ (Loss) Reclassified from Accumulated OCI into Income | $ 0 | $ 0 |
Derivative and Other Fair Val75
Derivative and Other Fair Value Instruments - Additional Information (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Feb. 28, 2018USD ($)DerivativeInstrument | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Derivative [Line Items] | |||
Unrealized gain (loss) on interest rate cash flow hedges, pretax, accumulated other comprehensive income (loss) | $ 77.7 | $ 88.6 | |
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months, net | $ 20.3 | ||
Forward Starting Swaps [Member] | |||
Derivative [Line Items] | |||
Proceeds from settlement of derivative instruments | $ 1.6 | ||
Forward starting swaps settled | DerivativeInstrument | 2 | ||
Public notes, face value | $ 500 | ||
Debt instrument, term | 10 years |
Earning Per Share and Earning76
Earning Per Share and Earnings Per Unit - Computation of Net Income per Share Basic and Net Income per Share Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income | $ 220,548 | $ 149,941 |
Allocation to Noncontrolling Interests – Operating Partnership | (8,059) | (5,411) |
Partially Owned Properties | (680) | (788) |
Preferred distributions | (773) | (773) |
Net income available to Common Shares | 211,036 | 142,969 |
Numerator for net income per share – diluted | $ 219,095 | $ 148,380 |
Weighted average Common Shares outstanding | 367,800 | 366,605 |
Dilutive Op Units | 12,863 | 12,899 |
Dilutive Securities Options | 2,355 | 2,776 |
Weighted average Common Shares outstanding | 383,018 | 382,280 |
Net income available to Common Shares | $ 0.57 | $ 0.39 |
Net income available to Common Shares | $ 0.57 | $ 0.39 |
Earning Per Share and Earning77
Earning Per Share and Earnings Per Unit - Computation of Net Income per Unit Basic and Net Income per Unit Diluted for Operating Partnership (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income | $ 220,548 | $ 149,941 |
Partially Owned Properties | $ (680) | $ (788) |
Dilutive Securities Options | 2,355 | 2,776 |
Weighted average Common Shares outstanding | 383,018 | 382,280 |
Net income available to Common Shares | $ 0.57 | $ 0.39 |
Net income available to Common Shares | $ 0.57 | $ 0.39 |
ERPOP [Member] | ||
Net income | $ 220,548 | $ 149,941 |
Partially Owned Properties | (680) | (788) |
Allocation to Preference Units | (773) | (773) |
Numerator for net income per Unit – basic and diluted | $ 219,095 | $ 148,380 |
Denominator for net income per Unit – basic | 380,663 | 379,504 |
Dilutive Securities Options | 2,355 | 2,776 |
Weighted average Common Shares outstanding | 383,018 | 382,280 |
Net income available to Common Shares | $ 0.57 | $ 0.39 |
Net income available to Common Shares | $ 0.57 | $ 0.39 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)PropertyApartmentUnit | |
Accrual for environmental loss contingencies | $ | $ 5.2 |
Number of properties with environmental reserves | Property | 3 |
Loss contingency accrual | $ | $ 0.9 |
Projects in various stages of development | Property | 3 |
Units in various stages of development | ApartmentUnit | 443 |
Consolidated project under development commitment fund | $ | $ 105.2 |
Various stages of development with estimated completion dates ranging through December 31, 2019 | Dec. 31, 2019 |
Partially Owned Properties – Unconsolidated | |
Number of unconsolidated projects | Property | 2 |
Reportable Segments - Additiona
Reportable Segments - Additional Information (Details) - Customer | Mar. 31, 2018 | Mar. 31, 2017 |
Segment Reporting Disclosure Of Entitys Reportable Segments [Abstract] | ||
Number of customer contributed 10% or more of total revenue | 0 | 0 |
Reportable Segments - Reconcili
Reportable Segments - Reconciliation of NOI from Rental Real Estate Specific to Continuing Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Rental income | $ 632,831 | $ 603,920 |
Property and maintenance expense | (108,202) | (102,608) |
Real estate taxes and insurance expense | (91,914) | (81,728) |
Operating income | 196,869 | 204,371 |
Same Store, Non-same Store and Other | ||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Rental income | 632,831 | 603,920 |
Property and maintenance expense | (108,202) | (102,608) |
Real estate taxes and insurance expense | (91,914) | (81,728) |
Total operating expenses | (200,116) | (184,336) |
Operating income | $ 432,715 | $ 419,584 |
Reportable Segments - NOI for E
Reportable Segments - NOI for Each Segment from Our Rental Real Estate Specific to Continuing Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Rental income | $ 632,831 | $ 603,920 | |
Operating income | 196,869 | 204,371 | |
Total Assets | 20,383,870 | $ 20,570,599 | |
Capital Expenditures | 36,747 | ||
Same store | |||
Segment Reporting Information [Line Items] | |||
Rental income | 590,384 | 577,404 | |
Operating expenses | 180,358 | 173,605 | |
Operating income | 410,026 | 403,799 | |
Total Assets | 17,612,333 | ||
Capital Expenditures | 36,235 | ||
Non-same store/other | |||
Segment Reporting Information [Line Items] | |||
Rental income | 42,447 | 26,516 | |
Operating expenses | 19,758 | 10,731 | |
Operating income | 22,689 | 15,785 | |
Total Assets | 2,771,537 | ||
Capital Expenditures | 512 | ||
Same Store, Non-same Store and Other | |||
Segment Reporting Information [Line Items] | |||
Rental income | 632,831 | 603,920 | |
Operating expenses | 200,116 | 184,336 | |
Operating income | 432,715 | 419,584 | |
Other markets | Same store | |||
Segment Reporting Information [Line Items] | |||
Rental income | 487 | 464 | |
Operating expenses | 165 | 196 | |
Operating income | 322 | 268 | |
Total Assets | 12,918 | ||
Capital Expenditures | 77 | ||
Los Angeles | Same store | |||
Segment Reporting Information [Line Items] | |||
Rental income | 102,484 | 98,636 | |
Operating expenses | 29,860 | 28,651 | |
Operating income | 72,624 | 69,985 | |
Total Assets | 2,670,909 | ||
Capital Expenditures | 5,939 | ||
Orange County | Same store | |||
Segment Reporting Information [Line Items] | |||
Rental income | 22,502 | 21,656 | |
Operating expenses | 5,527 | 5,462 | |
Operating income | 16,975 | 16,194 | |
Total Assets | 325,898 | ||
Capital Expenditures | 1,620 | ||
San Diego | Same store | |||
Segment Reporting Information [Line Items] | |||
Rental income | 22,493 | 21,723 | |
Operating expenses | 5,963 | 5,799 | |
Operating income | 16,530 | 15,924 | |
Total Assets | 417,593 | ||
Capital Expenditures | 1,270 | ||
Subtotal - Southern California | Same store | |||
Segment Reporting Information [Line Items] | |||
Rental income | 147,479 | 142,015 | |
Operating expenses | 41,350 | 39,912 | |
Operating income | 106,129 | 102,103 | |
Total Assets | 3,414,400 | ||
Capital Expenditures | 8,829 | ||
San Francisco | Same store | |||
Segment Reporting Information [Line Items] | |||
Rental income | 109,212 | 106,306 | |
Operating expenses | 26,995 | 26,928 | |
Operating income | 82,217 | 79,378 | |
Total Assets | 3,020,673 | ||
Capital Expenditures | 8,743 | ||
Washington DC | Same store | |||
Segment Reporting Information [Line Items] | |||
Rental income | 107,155 | 106,443 | |
Operating expenses | 33,663 | 32,332 | |
Operating income | 73,492 | 74,111 | |
Total Assets | 3,771,999 | ||
Capital Expenditures | 5,964 | ||
New York | Same store | |||
Segment Reporting Information [Line Items] | |||
Rental income | 119,626 | 119,363 | |
Operating expenses | 47,825 | 45,439 | |
Operating income | 71,801 | 73,924 | |
Total Assets | 4,447,994 | ||
Capital Expenditures | 5,216 | ||
Boston | Same store | |||
Segment Reporting Information [Line Items] | |||
Rental income | 57,814 | 56,388 | |
Operating expenses | 16,672 | 15,783 | |
Operating income | 41,142 | 40,605 | |
Total Assets | 1,637,837 | ||
Capital Expenditures | 4,358 | ||
Seattle | Same store | |||
Segment Reporting Information [Line Items] | |||
Rental income | 48,611 | 46,425 | |
Operating expenses | 13,688 | 13,015 | |
Operating income | 34,923 | 33,410 | |
Total Assets | 1,306,512 | ||
Capital Expenditures | 3,048 | ||
Non-same store | Non-same store/other | |||
Segment Reporting Information [Line Items] | |||
Rental income | 38,622 | 15,961 | |
Operating expenses | 13,733 | 5,894 | |
Operating income | 24,889 | 10,067 | |
Total Assets | 2,276,821 | ||
Capital Expenditures | 454 | ||
Other | Non-same store/other | |||
Segment Reporting Information [Line Items] | |||
Rental income | 3,825 | 10,555 | |
Operating expenses | 6,025 | 4,837 | |
Operating income | (2,200) | $ 5,718 | |
Total Assets | 494,716 | ||
Capital Expenditures | $ 58 |
Reportable Segments - NOI for82
Reportable Segments - NOI for Each Segment from Our Rental Real Estate Specific to Continuing Operations (Parenthetical) (Details) - Property | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Disclosure Of Entitys Reportable Segments [Abstract] | ||
Units in same store properties | 72,204 | 72,204 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Thousands | Apr. 27, 2018USD ($)PropertyApartmentUnit | Mar. 31, 2018USD ($)PropertyApartmentUnit |
Subsequent Event [Line Items] | ||
Properties acquired | Property | 1 | |
Property Units acquired | ApartmentUnit | 117 | |
Purchase Price | $ | $ 53,700 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Properties acquired | Property | 1 | |
Property Units acquired | ApartmentUnit | 240 | |
Purchase Price | $ | $ 146,000 |