EXHIBIT 99.1
Equity Residential to Record Profit of $57 Million on Sale of Rent.com;
Updates FFO and Earnings Per Share Guidance
CHICAGO--(BUSINESS WIRE)--Feb. 25, 2005--Equity Residential
(NYSE:EQR) today announced that the company has received $57 million
in cash, and will record a $57 million gain, for its ownership
investment in Rent.com in connection with the previously announced
acquisition of Rent.com by eBay Inc.(NASDAQ:EBAY). Rent.com is a
leading internet listing website in the apartment and rental housing
industry. As a result, the company will record a one-time gain to
earnings and Funds from Operations (FFO) of approximately $0.18 per
share. The company now expects earnings per share of $0.82 to $0.84
for the first quarter of 2005 and $2.01 to $2.11 per share for the
full year 2005 and FFO per share of $0.73 to $0.75 for the first
quarter 2005 and $2.43 to $2.53 for the full year 2005. The change in
guidance reflects this gain, as well as additional accruals for
certain management incentive programs that could increase as a result
of the gain.
On December 16, 2004, eBay announced its proposed acquisition of
privately- held Rent.com payable in a combination of cash and eBay
common stock. The acquisition terms were later amended to provide for
full payment in cash instead of eBay common stock.
Forward-Looking Statements
The company lists parameters for 2005 results in the final page of
this release. 2005 results will depend upon a slowdown in multifamily
starts and economic recovery and job growth. The forward-looking
statements contained in this news release regarding 2005 results are
further subject to certain risks and uncertainties including, without
limitation, the risks described under the heading "Risk Factors" in
our Annual Report on Form 10-K filed with the Securities and Exchange
Commission (SEC) and available on our website,
www.equityresidential.com. The company assumes no obligation to update
or supplement forward-looking statements that become untrue because of
subsequent events.
Equity Residential is the largest publicly traded apartment
company in America. Nationwide, Equity Residential owns or has
investments in 942 properties, in 32 states and the District of
Columbia, consisting of 200,326 units. For more information on Equity
Residential, please visit our website at www.equityresidential.com.
As a result of the Securities and Exchange Commission's Regulation FD,
the company provides earnings guidance in its quarterly earnings
release. The per share data on this page updates information provided
in the company's release dated February 2, 2005. These projections are
based on current expectations and are forward-looking.
2005 Earnings Guidance (per share diluted)
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Q1 2005 2005
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Expected EPS(1)(3) $0.82 to $0.84 $2.01 to $2.11
Add: Expected depreciation expense 0.41 1.62
Less: Expected net gain on sales(1) (0.50) (1.20)
-------------- --------------
Expected FFO(2)(3) $0.73 to $0.75 $2.43 to $2.53
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Same-Store Assumptions
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2005
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Physical occupancy 94.0%
Revenue change 2.00% to 3.25%
Expense change 3.6% to 5.0%
NOI change 0.0% to 3.0%
Acquisitions $1.0 billion
Dispositions $1.0 billion
(1) Earnings per share ("EPS") represents net income per share
calculated in accordance with accounting principles generally accepted
in the United States. Expected EPS is calculated on a basis consistent
with actual EPS. Due to the uncertain timing and extent of property
dispositions and the resulting gains/losses on sales, actual EPS could
differ materially from expected EPS.
(2) The National Association of Real Estate Investment Trusts
("NAREIT") defines funds from operations ("FFO") (April 2002 White
Paper) as net income (computed in accordance with accounting
principles generally accepted in the United States), excluding gains
(or losses) from sales of depreciable property, plus depreciation and
amortization, and after adjustments for unconsolidated partnerships
and joint ventures. Adjustments for unconsolidated partnerships and
joint ventures will be calculated to reflect funds from operations on
the same basis. Expected FFO is calculated on a basis consistent with
actual FFO.
(3) Q1 2005 includes $0.21 per share of non-recurring realized gain on
sale of vacant land ($0.03) and eBay Inc.'s acquisition of the
company's ownership in Rent.com ($0.18).
CONTACT: Equity Residential
Marty McKenna, 312-928-1901