Exhibit 99.1
Equity Residential Issues Additional Information Regarding First Quarter
2007 Guidance
CHICAGO--(BUSINESS WIRE)--Feb. 7, 2007--On February 6, 2007,
Equity Residential (NYSE:EQR) reported the company's 2006 results and
issued earnings guidance for 2007. On a conference call held earlier
today, there were several questions regarding the company's underlying
assumptions used in its estimate of first quarter 2007 funds from
operations (FFO) per share. In order to provide additional information
to the investment community, the company is providing the attached
chart to show the reconciliation of its actual fourth quarter 2006 FFO
per share to its estimate of first quarter 2007 FFO per share.
Equity Residential is an S&P 500 company focused on the
acquisition, development and management of high quality apartment
properties in top U.S. growth markets. Equity Residential owns or has
investments in 617 properties totaling 165,716 units. For more
information on Equity Residential, please visit our website at
www.equityresidential.com.
Forward-Looking Statements
In addition to historical information, this press release contains
forward-looking statements and information within the meaning of the
federal securities laws. These statements are based on current
expectations, estimates, projections and assumptions made by
management. While Equity Residential's management believes the
assumptions underlying its forward-looking statements are reasonable,
such information is inherently subject to uncertainties and may
involve certain risks, including, without limitation, changes in
general market conditions, including the rate of job growth and cost
of labor and construction material, the level of new multifamily
construction and development, competition and local government
regulation. Other risks and uncertainties are 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. Many of these uncertainties and
risks are difficult to predict and beyond management's control.
Forward-looking statements are not guarantees of future performance,
results or events. Equity Residential assumes no obligation to update
or supplement forward-looking statements that become untrue because of
subsequent events.
Additional Information Regarding Q1 2007 Earnings Guidance
(per share diluted)
FFO
Reconciliation
Actual Q4 2006
to Expected Q1
2007
---------------
Actual Q4 2006 FFO (2) (3) $0.49
Add: Q4 2006 corporate housing
impairment charge 0.09
Less: Forfeited deposits (0.03)
Less: Lower expected net condominium
profits (0.03)
Less: Higher expected property
management expense (0.01)
Less: Higher expected general and
administrative expense (0.01)
---------------
Expected Q1 2007 FFO - Midpoint of
guidance range (2) (3) $0.50
===============
Actual Expected
Q4 2006 Q1 2007
--------------- ---------------
Actual/expected EPS (1) $1.54 $0.69 to $0.73
Add: Actual/expected depreciation
expense 0.47 0.47
Less: Actual/expected net gain on sales
(1) (1.52) (0.68)
--------------- ---------------
Actual/expected FFO (2) (3) $0.49 $0.48 to $0.52
=============== ===============
(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) The Company believes that FFO is helpful to investors as a
supplemental measure of the operating performance of a real
estate company, because it is a recognized measure of performance
by the real estate industry and by excluding gains or losses
related to dispositions of depreciable property and excluding
real estate depreciation (which can vary among owners of
identical assets in similar condition based on historical cost
accounting and useful life estimates), FFO can help compare the
operating performance of a company's real estate between periods
or as compared to different companies. FFO in and of itself does
not represent net income or net cash flows from operating
activities in accordance with GAAP. Therefore, FFO should not be
exclusively considered as an alternative to net income or to net
cash flows from operating activities as determined by GAAP or as
a measure of liquidity. The Company's calculation of FFO may
differ from other real estate companies due to, among other
items, variations in cost capitalization policies for capital
expenditures and, accordingly, may not be comparable to such
other real estate companies.
CONTACT: Equity Residential
Marty McKenna, 312-928-1901