Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Document And Entity Information [Line Items] | ||
Entity Registrant Name | EQUITY RESIDENTIAL | |
Entity Central Index Key | 0000906107 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | EQR | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 371,354,411 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 1-12252 | |
Entity Tax Identification Number | 13-3675988 | |
Entity Address, Address Line One | Two North Riverside Plaza | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60606 | |
City Area Code | 312 | |
Local Phone Number | 474-1300 | |
Entity Incorporation, State or Country Code | MD | |
Title of 12(b) Security | Common Shares of Beneficial Interest, $0.01 Par Value (Equity Residential) | |
Security Exchange Name | NYSE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
ERPOP [Member] | ||
Document And Entity Information [Line Items] | ||
Entity Registrant Name | ERP OPERATING LIMITED PARTNERSHIP | |
Entity Central Index Key | 0000931182 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
No Trading Symbol Flag | true | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 0-24920 | |
Entity Tax Identification Number | 36-3894853 | |
Entity Address, Address Line One | Two North Riverside Plaza | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60606 | |
City Area Code | 312 | |
Local Phone Number | 474-1300 | |
Entity Incorporation, State or Country Code | IL | |
Title of 12(b) Security | 7.57% Notes due August 15, 2026 (ERP Operating Limited Partnership) | |
Security Exchange Name | NYSE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Land | $ 5,955,121 | $ 5,875,803 |
Depreciable property | 21,168,255 | 20,435,901 |
Projects under development | 143,434 | 109,409 |
Land held for development | 91,017 | 89,909 |
Investment in real estate | 27,357,827 | 26,511,022 |
Accumulated depreciation | (7,171,876) | (6,696,281) |
Investment in real estate, net | 20,185,951 | 19,814,741 |
Investments in unconsolidated entities | 52,474 | 58,349 |
Cash and cash equivalents | 28,777 | 47,442 |
Restricted deposits | 55,819 | 68,871 |
Right-of-use assets | 481,044 | 0 |
Other assets | 249,991 | 404,806 |
Total assets | 21,054,056 | 20,394,209 |
Liabilities: | ||
Mortgage notes payable, net | 1,962,471 | 2,385,470 |
Notes, net | 6,675,084 | 5,933,286 |
Line of credit and commercial paper | 354,381 | 499,183 |
Accounts payable and accrued expenses | 151,680 | 102,471 |
Accrued interest payable | 73,747 | 62,622 |
Lease liabilities | 333,312 | 0 |
Other liabilities | 312,849 | 358,563 |
Security deposits | 70,398 | 67,258 |
Distributions payable | 218,136 | 206,601 |
Total liabilities | 10,152,058 | 9,615,454 |
Commitments and contingencies | ||
Redeemable Noncontrolling Interests – Operating Partnership | 494,999 | 379,106 |
Shareholders' equity: | ||
Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized; 745,600 shares issued and outstanding as of September 30, 2019 and December 31, 2018 | 37,280 | 37,280 |
Common Shares of beneficial interest, $0.01 par value; 1,000,000,000 shares authorized; 371,327,332 shares issued and outstanding as of September 30, 2019 and 369,405,161 shares issued and outstanding as of December 31, 2018 | 3,713 | 3,694 |
Paid in capital | 8,917,312 | 8,935,453 |
Retained earnings | 1,308,423 | 1,261,763 |
Accumulated other comprehensive income (loss) | (84,092) | (64,986) |
Total shareholders’ equity | 10,182,636 | 10,173,204 |
Noncontrolling Interests: | ||
Operating Partnership | 226,065 | 228,738 |
Partially Owned Properties | (1,702) | (2,293) |
Total Noncontrolling Interests | 224,363 | 226,445 |
Total equity | 10,406,999 | 10,399,649 |
Total liabilities and equity/capital | $ 21,054,056 | $ 20,394,209 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
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 | 371,327,332 | 369,405,161 |
Common Stock, Shares, Outstanding | 371,327,332 | 369,405,161 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
REVENUES | ||||
Rental income | $ 685,120 | $ 652,677 | $ 2,016,796 | $ 1,925,128 |
Fee and asset management | $ 25 | $ 190 | $ 360 | $ 563 |
Type of Revenue [Extensible List] | us-gaap:ManagementServiceMember | us-gaap:ManagementServiceMember | us-gaap:ManagementServiceMember | us-gaap:ManagementServiceMember |
Total revenues | $ 685,145 | $ 652,867 | $ 2,017,156 | $ 1,925,691 |
EXPENSES | ||||
Property and maintenance | 114,966 | 110,541 | 338,497 | 322,487 |
Real estate taxes and insurance | 87,546 | 87,388 | 270,434 | 268,784 |
Property management | 21,940 | 22,247 | 72,705 | 69,175 |
General and administrative | 11,417 | 12,640 | 41,127 | 41,420 |
Depreciation | 211,478 | 194,618 | 616,201 | 583,869 |
Total expenses | 447,347 | 427,434 | 1,338,964 | 1,285,735 |
Net gain (loss) on sales of real estate properties | 130,565 | 114,672 | 269,400 | 256,834 |
Impairment | (702) | (702) | ||
Operating income | 368,363 | 339,403 | 947,592 | 896,088 |
Interest and other income | 631 | 7,864 | 2,221 | 14,860 |
Other expenses | (2,813) | (7,661) | (11,205) | (14,871) |
Interest: | ||||
Expense incurred, net | (85,936) | (111,219) | (289,776) | (321,454) |
Amortization of deferred financing costs | (2,881) | (3,276) | (8,664) | (9,054) |
Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of land parcels | 277,364 | 225,111 | 640,168 | 565,569 |
Income and other tax (expense) benefit | (265) | (280) | (749) | (767) |
Income (loss) from investments in unconsolidated entities | (1,152) | (985) | 66,906 | (2,993) |
Net gain (loss) on sales of land parcels | 1,899 | 2,077 | 995 | |
Net income | 277,846 | 223,846 | 708,402 | 562,804 |
Net (income) loss attributable to Noncontrolling Interests: | ||||
Operating Partnership | (9,910) | (8,159) | (25,339) | (20,517) |
Partially Owned Properties | (830) | (750) | (2,450) | (1,939) |
Net income attributable to controlling interests | 267,106 | 214,937 | 680,613 | 540,348 |
Preferred distributions | (773) | (773) | (2,318) | (2,318) |
Net income available to Common Shares | $ 266,333 | $ 214,164 | $ 678,295 | $ 538,030 |
Earnings per share – basic: | ||||
Net income available to Common Shares | $ 0.72 | $ 0.58 | $ 1.83 | $ 1.46 |
Weighted average Common Shares outstanding | 370,768 | 368,028 | 370,227 | 367,920 |
Earnings per share – diluted: | ||||
Net income available to Common Shares | $ 0.71 | $ 0.58 | $ 1.82 | $ 1.46 |
Weighted average Common Shares outstanding | 386,896 | 383,884 | 386,177 | 383,433 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Comprehensive income: | ||||
Net income | $ 277,846 | $ 223,846 | $ 708,402 | $ 562,804 |
Other comprehensive income (loss) – derivative instruments: | ||||
Unrealized holding gains (losses) arising during the period | 12,026 | (33,765) | 24,021 | |
Losses reclassified into earnings from other comprehensive income | 5,757 | 4,595 | 14,659 | 13,902 |
Other comprehensive income (loss) | 5,757 | 16,621 | (19,106) | 37,923 |
Comprehensive income | 283,603 | 240,467 | 689,296 | 600,727 |
Comprehensive (income) attributable to Noncontrolling Interests | (10,946) | (9,519) | (27,096) | (23,848) |
Comprehensive income attributable to controlling interests | $ 272,657 | $ 230,948 | $ 662,200 | $ 576,879 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 708,402 | $ 562,804 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 616,201 | 583,869 |
Amortization of deferred financing costs | 8,664 | 9,054 |
Amortization of above/below market lease intangibles | (53) | 3,294 |
Amortization of discounts and premiums on debt | 10,137 | 21,360 |
Amortization of deferred settlements on derivative instruments | 14,650 | 13,893 |
Amortization of right-of-use assets | 9,966 | |
Impairment | 702 | |
Write-off of pursuit costs | 4,098 | 3,125 |
(Income) loss from investments in unconsolidated entities | (66,906) | 2,993 |
Distributions from unconsolidated entities – return on capital | 2,486 | 1,885 |
Net (gain) loss on sales of real estate properties | (269,400) | (256,834) |
Net (gain) loss on sales of land parcels | (2,077) | (995) |
Net (gain) loss on debt extinguishment | 3,381 | 22,110 |
Compensation paid with Company Common Shares | 20,777 | 22,270 |
Changes in assets and liabilities: | ||
(Increase) decrease in other assets | (20,871) | (18,550) |
Increase (decrease) in accounts payable and accrued expenses | 57,822 | 58,756 |
Increase (decrease) in accrued interest payable | 11,125 | 11,097 |
Increase (decrease) in other liabilities | (15,578) | 1,190 |
Increase (decrease) in security deposits | 3,140 | 2,168 |
Increase (decrease) in lease liabilities | (1,784) | |
Net cash provided by operating activities | 1,094,180 | 1,044,191 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Investment in real estate – acquisitions | (1,147,236) | (708,092) |
Investment in real estate – development/other | (137,238) | (101,573) |
Capital expenditures to real estate | (128,335) | (138,119) |
Non-real estate capital additions | (2,139) | (3,155) |
Interest capitalized for real estate under development | (4,801) | (4,547) |
Proceeds from disposition of real estate, net | 692,649 | 691,526 |
Investments in unconsolidated entities | (9,073) | (4,860) |
Distributions from unconsolidated entities – return of capital | 78,262 | |
Purchase of investment securities and other investments | (269) | |
Net cash provided by (used for) investing activities | (658,180) | (268,820) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Debt financing costs | (12,025) | (4,355) |
Mortgage notes payable, net: | ||
Proceeds | 295,713 | |
Lump sum payoffs | (723,021) | (847,939) |
Scheduled principal repayments | (4,883) | (4,938) |
Notes, net: | ||
Proceeds | 1,194,468 | 497,010 |
Lump sum payoffs | (450,000) | |
Line of credit and commercial paper: | ||
Line of credit proceeds | 5,850,000 | 1,635,000 |
Line of credit repayments | (5,850,000) | (1,635,000) |
Commercial paper proceeds | 13,341,198 | 9,624,610 |
Commercial paper repayments | (13,486,000) | (9,425,000) |
Proceeds from (payments on) settlement of derivative instruments | (41,616) | 1,638 |
Proceeds from Employee Share Purchase Plan (ESPP) | 2,323 | 3,074 |
Proceeds from exercise of options | 67,066 | 6,000 |
Payment of offering costs | (789) | (27) |
Other financing activities, net | (49) | (48) |
Contributions – Noncontrolling Interests – Partially Owned Properties | 4,594 | 125 |
Contributions – Noncontrolling Interests – Operating Partnership | 1 | |
Distributions: | ||
Common Shares | (620,391) | (583,184) |
Preferred Shares | (2,318) | (2,318) |
Noncontrolling Interests – Operating Partnership | (22,202) | (21,040) |
Noncontrolling Interests – Partially Owned Properties | (6,404) | (8,882) |
Net cash provided by (used for) financing activities | (467,717) | (787,383) |
Net increase (decrease) in cash and cash equivalents and restricted deposits | (31,717) | (12,012) |
Cash and cash equivalents and restricted deposits, beginning of period | 116,313 | 100,762 |
Cash and cash equivalents and restricted deposits, end of period | 84,596 | 88,750 |
Cash and cash equivalents | 28,777 | 32,995 |
Restricted deposits | 55,819 | 55,755 |
SUPPLEMENTAL INFORMATION: | ||
Cash paid for interest, net of amounts capitalized | 246,410 | 268,966 |
Net cash paid for income and other taxes | 918 | 934 |
Amortization of deferred financing costs: | ||
Other assets | 1,808 | 1,809 |
Mortgage notes payable, net | 3,529 | 4,197 |
Notes, net | 3,387 | 3,048 |
Investment in real estate, net | (60) | |
Amortization of discounts and premiums on debt: | ||
Mortgage notes payable, net | 8,017 | 19,394 |
Notes, net | 2,120 | 1,966 |
Amortization of deferred settlements on derivative instruments: | ||
Other liabilities | (9) | (9) |
Accumulated other comprehensive income | 14,659 | 13,902 |
Write-off of pursuit costs: | ||
Investment in real estate, net | 4,042 | 3,079 |
Other assets | 48 | 13 |
Accounts payable and accrued expenses | 8 | 33 |
(Income) loss from investments in unconsolidated entities: | ||
Investments in unconsolidated entities | (67,900) | 1,973 |
Other liabilities | 994 | 1,020 |
Realized/unrealized (gain) loss on derivative instruments: | ||
Other assets | 2,002 | (24,021) |
Notes, net | 2,277 | (1,491) |
Other liabilities | 29,486 | 1,491 |
Accumulated other comprehensive income | (33,765) | 24,021 |
Investments in unconsolidated entities: | ||
Investments in unconsolidated entities | (6,973) | (3,180) |
Other liabilities | (2,100) | (1,680) |
Debt financing costs: | ||
Other assets | 145 | |
Mortgage notes payable, net | (2,354) | |
Notes, net | (10,454) | (4,355) |
Other liabilities | 638 | |
Right-of-use assets and lease liabilities initial measurement and reclassifications: | ||
Right-of-use assets | (491,010) | |
Other assets | 184,116 | |
Lease liabilities | 335,096 | |
Other liabilities | (28,202) | |
Mortgage Notes Payable, Net [Member] | ||
Mortgage notes payable, net: | ||
Net gain (loss) on debt extinguishment | $ (3,381) | $ (22,110) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands | Total | PREFERRED SHARES | COMMON SHARES, $0.01 PAR VALUE | PAID IN CAPITAL | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | DISTRIBUTIONS | OPERATING PARTNERSHIP | PARTIALLY OWNED PROPERTIES |
Balance, beginning of year at Dec. 31, 2017 | $ 37,280 | $ 3,680 | $ 8,886,586 | $ 1,403,530 | $ (88,612) | ||||
Balance, beginning of year at Dec. 31, 2017 | $ 226,691 | $ 4,708 | |||||||
COMMON SHARES, $0.01 PAR VALUE | |||||||||
Conversion of OP Units into Common Shares | 356 | ||||||||
Exercise of share options | 2 | 5,998 | |||||||
Employee Share Purchase Plan (ESPP) | 1 | 3,073 | |||||||
Share-based employee compensation expense: | |||||||||
Restricted shares | 1 | 6,803 | |||||||
Share options | 9,206 | ||||||||
ESPP discount | 604 | ||||||||
Offering costs | (27) | ||||||||
Supplemental Executive Retirement Plan (SERP) | (533) | ||||||||
Change in market value of Redeemable Noncontrolling Interests – Operating Partnership | $ 14,361 | (14,361) | |||||||
Adjustment for Noncontrolling Interests ownership in Operating Partnership | 2,619 | (2,619) | |||||||
PAID IN CAPITAL | |||||||||
Conversion of OP Units into Common Shares | 356 | ||||||||
Exercise of share options | 2 | 5,998 | |||||||
Employee Share Purchase Plan (ESPP) | 1 | 3,073 | |||||||
RETAINED EARNINGS | |||||||||
Net income attributable to controlling interests | 540,348 | 540,348 | |||||||
Common Share distributions | (596,735) | ||||||||
Preferred Share distributions | (2,318) | ||||||||
Accumulated other comprehensive income (loss) – derivative instruments: | |||||||||
Unrealized holding gains (losses) arising during the period | 24,021 | 24,021 | |||||||
Losses reclassified into earnings from other comprehensive income | (13,902) | 13,902 | |||||||
DISTRIBUTIONS | |||||||||
Distributions declared per Common Share outstanding | $ 1.62 | ||||||||
NONCONTROLLING INTERESTS | |||||||||
Issuance of restricted units to Noncontrolling Interests | 1 | ||||||||
Conversion of OP Units into Common Shares | 356 | ||||||||
Equity compensation associated with Noncontrolling Interests | 11,074 | ||||||||
Net income | 562,804 | ||||||||
Distributions to Noncontrolling Interests | (21,560) | (8,930) | |||||||
Change in carrying value of Redeemable Noncontrolling Interests - Operating Partnership | (77) | 77 | |||||||
Adjustment for Noncontrolling Interests ownership in Operating Partnership | 2,619 | (2,619) | |||||||
Conversion of OP Units held by Noncontrolling Interests into OP Units held by General Partner | (356) | ||||||||
Net income attributable to Noncontrolling Interests | 20,517 | 20,517 | 1,939 | ||||||
PARTIALLY OWNED PROPERTIES | |||||||||
Net income attributable to Noncontrolling Interests | 20,517 | 20,517 | 1,939 | ||||||
Contributions by Noncontrolling Interests | 125 | ||||||||
Distributions to Noncontrolling Interests | (21,560) | (8,930) | |||||||
Balance, end of period at Sep. 30, 2018 | 37,280 | 3,684 | 8,900,324 | 1,344,825 | (50,689) | ||||
Balance, end of period at Sep. 30, 2018 | 233,825 | (2,158) | |||||||
Balance, beginning of year at Jun. 30, 2018 | 37,280 | 3,683 | 8,905,184 | 1,329,600 | (67,310) | ||||
Balance, beginning of year at Jun. 30, 2018 | 232,995 | (1,646) | |||||||
COMMON SHARES, $0.01 PAR VALUE | |||||||||
Conversion of OP Units into Common Shares | 25 | ||||||||
Exercise of share options | 1 | 3,382 | |||||||
Employee Share Purchase Plan (ESPP) | 893 | ||||||||
Share-based employee compensation expense: | |||||||||
Restricted shares | 1,641 | ||||||||
Share options | 670 | ||||||||
ESPP discount | 204 | ||||||||
Supplemental Executive Retirement Plan (SERP) | 5 | ||||||||
Change in market value of Redeemable Noncontrolling Interests – Operating Partnership | (14,189) | ||||||||
Adjustment for Noncontrolling Interests ownership in Operating Partnership | 2,509 | (2,509) | |||||||
PAID IN CAPITAL | |||||||||
Conversion of OP Units into Common Shares | 25 | ||||||||
Exercise of share options | 1 | 3,382 | |||||||
Employee Share Purchase Plan (ESPP) | 893 | ||||||||
RETAINED EARNINGS | |||||||||
Net income attributable to controlling interests | 214,937 | 214,937 | |||||||
Common Share distributions | (198,939) | ||||||||
Preferred Share distributions | (773) | ||||||||
Accumulated other comprehensive income (loss) – derivative instruments: | |||||||||
Unrealized holding gains (losses) arising during the period | 12,026 | 12,026 | |||||||
Losses reclassified into earnings from other comprehensive income | (4,595) | 4,595 | |||||||
DISTRIBUTIONS | |||||||||
Distributions declared per Common Share outstanding | 0.54 | ||||||||
NONCONTROLLING INTERESTS | |||||||||
Conversion of OP Units into Common Shares | 25 | ||||||||
Equity compensation associated with Noncontrolling Interests | 2,958 | ||||||||
Net income | 223,846 | ||||||||
Distributions to Noncontrolling Interests | (7,186) | (1,262) | |||||||
Change in carrying value of Redeemable Noncontrolling Interests - Operating Partnership | (567) | ||||||||
Adjustment for Noncontrolling Interests ownership in Operating Partnership | 2,509 | (2,509) | |||||||
Conversion of OP Units held by Noncontrolling Interests into OP Units held by General Partner | (25) | ||||||||
Net income attributable to Noncontrolling Interests | 8,159 | 8,159 | 750 | ||||||
PARTIALLY OWNED PROPERTIES | |||||||||
Net income attributable to Noncontrolling Interests | 8,159 | 8,159 | 750 | ||||||
Distributions to Noncontrolling Interests | (7,186) | (1,262) | |||||||
Balance, end of period at Sep. 30, 2018 | 37,280 | 3,684 | 8,900,324 | 1,344,825 | (50,689) | ||||
Balance, end of period at Sep. 30, 2018 | 233,825 | (2,158) | |||||||
Balance, beginning of year at Dec. 31, 2018 | 10,173,204 | 37,280 | 3,694 | 8,935,453 | 1,261,763 | (64,986) | |||
Balance, beginning of year at Dec. 31, 2018 | 226,445 | 228,738 | (2,293) | ||||||
COMMON SHARES, $0.01 PAR VALUE | |||||||||
Conversion of OP Units into Common Shares | 3 | 9,840 | |||||||
Exercise of share options | 14 | 67,052 | |||||||
Employee Share Purchase Plan (ESPP) | 2,323 | ||||||||
Share-based employee compensation expense: | |||||||||
Restricted shares | 2 | 10,302 | |||||||
Share options | 2,185 | ||||||||
ESPP discount | 502 | ||||||||
Offering costs | (789) | ||||||||
Supplemental Executive Retirement Plan (SERP) | (1,539) | ||||||||
Change in market value of Redeemable Noncontrolling Interests – Operating Partnership | 114,936 | (114,936) | |||||||
Adjustment for Noncontrolling Interests ownership in Operating Partnership | 6,919 | (6,919) | |||||||
PAID IN CAPITAL | |||||||||
Conversion of OP Units into Common Shares | 3 | 9,840 | |||||||
Exercise of share options | 14 | 67,052 | |||||||
Employee Share Purchase Plan (ESPP) | 2,323 | ||||||||
RETAINED EARNINGS | |||||||||
Net income attributable to controlling interests | 680,613 | 680,613 | |||||||
Common Share distributions | (631,635) | ||||||||
Preferred Share distributions | (2,318) | ||||||||
Accumulated other comprehensive income (loss) – derivative instruments: | |||||||||
Unrealized holding gains (losses) arising during the period | (33,765) | (33,765) | |||||||
Losses reclassified into earnings from other comprehensive income | (14,659) | 14,659 | |||||||
DISTRIBUTIONS | |||||||||
Distributions declared per Common Share outstanding | 1.7025 | ||||||||
NONCONTROLLING INTERESTS | |||||||||
Conversion of OP Units into Common Shares | 3 | 9,840 | |||||||
Equity compensation associated with Noncontrolling Interests | 12,200 | ||||||||
Net income | 708,402 | ||||||||
Distributions to Noncontrolling Interests | (22,493) | (6,453) | |||||||
Change in carrying value of Redeemable Noncontrolling Interests - Operating Partnership | 957 | (957) | |||||||
Adjustment for Noncontrolling Interests ownership in Operating Partnership | 6,919 | (6,919) | |||||||
Conversion of OP Units held by Noncontrolling Interests into OP Units held by General Partner | (9,843) | ||||||||
Net income attributable to Noncontrolling Interests | 25,339 | 25,339 | 2,450 | ||||||
PARTIALLY OWNED PROPERTIES | |||||||||
Net income attributable to Noncontrolling Interests | 25,339 | 25,339 | 2,450 | ||||||
Contributions by Noncontrolling Interests | 4,594 | ||||||||
Distributions to Noncontrolling Interests | (22,493) | (6,453) | |||||||
Balance, end of period at Sep. 30, 2019 | 10,182,636 | 37,280 | 3,713 | 8,917,312 | 1,308,423 | (84,092) | |||
Balance, end of period at Sep. 30, 2019 | 224,363 | 226,065 | (1,702) | ||||||
Balance, beginning of year at Jun. 30, 2019 | 37,280 | 3,708 | 8,949,581 | 1,252,809 | (89,849) | ||||
Balance, beginning of year at Jun. 30, 2019 | 227,320 | (1,298) | |||||||
COMMON SHARES, $0.01 PAR VALUE | |||||||||
Conversion of OP Units into Common Shares | 1 | 4,971 | |||||||
Exercise of share options | 4 | 18,575 | |||||||
Employee Share Purchase Plan (ESPP) | 671 | ||||||||
Share-based employee compensation expense: | |||||||||
Restricted shares | 2,322 | ||||||||
Share options | 503 | ||||||||
ESPP discount | 137 | ||||||||
Offering costs | (634) | ||||||||
Change in market value of Redeemable Noncontrolling Interests – Operating Partnership | (57,962) | ||||||||
Adjustment for Noncontrolling Interests ownership in Operating Partnership | (852) | 852 | |||||||
PAID IN CAPITAL | |||||||||
Conversion of OP Units into Common Shares | 1 | 4,971 | |||||||
Exercise of share options | 4 | 18,575 | |||||||
Employee Share Purchase Plan (ESPP) | 671 | ||||||||
RETAINED EARNINGS | |||||||||
Net income attributable to controlling interests | 267,106 | 267,106 | |||||||
Common Share distributions | (210,719) | ||||||||
Preferred Share distributions | (773) | ||||||||
Accumulated other comprehensive income (loss) – derivative instruments: | |||||||||
Losses reclassified into earnings from other comprehensive income | (5,757) | 5,757 | |||||||
DISTRIBUTIONS | |||||||||
Distributions declared per Common Share outstanding | $ 0.5675 | ||||||||
NONCONTROLLING INTERESTS | |||||||||
Conversion of OP Units into Common Shares | 1 | 4,971 | |||||||
Equity compensation associated with Noncontrolling Interests | 1,371 | ||||||||
Net income | 277,846 | ||||||||
Distributions to Noncontrolling Interests | (7,414) | (1,234) | |||||||
Change in carrying value of Redeemable Noncontrolling Interests - Operating Partnership | (1,002) | ||||||||
Adjustment for Noncontrolling Interests ownership in Operating Partnership | (852) | 852 | |||||||
Conversion of OP Units held by Noncontrolling Interests into OP Units held by General Partner | (4,972) | ||||||||
Net income attributable to Noncontrolling Interests | 9,910 | 9,910 | 830 | ||||||
PARTIALLY OWNED PROPERTIES | |||||||||
Net income attributable to Noncontrolling Interests | 9,910 | 9,910 | 830 | ||||||
Distributions to Noncontrolling Interests | (7,414) | (1,234) | |||||||
Balance, end of period at Sep. 30, 2019 | 10,182,636 | $ 37,280 | $ 3,713 | $ 8,917,312 | $ 1,308,423 | $ (84,092) | |||
Balance, end of period at Sep. 30, 2019 | $ 224,363 | $ 226,065 | $ (1,702) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Statement Of Stockholders Equity [Abstract] | |||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 |
CONSOLIDATED BALANCE SHEETS OF
CONSOLIDATED BALANCE SHEETS OF ERP OPERATING LIMITED PARTNERSHIP (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Land | $ 5,955,121 | $ 5,875,803 |
Depreciable property | 21,168,255 | 20,435,901 |
Projects under development | 143,434 | 109,409 |
Land held for development | 91,017 | 89,909 |
Investment in real estate | 27,357,827 | 26,511,022 |
Accumulated depreciation | (7,171,876) | (6,696,281) |
Investment in real estate, net | 20,185,951 | 19,814,741 |
Investments in unconsolidated entities | 52,474 | 58,349 |
Cash and cash equivalents | 28,777 | 47,442 |
Restricted deposits | 55,819 | 68,871 |
Right-of-use assets | 481,044 | 0 |
Other assets | 249,991 | 404,806 |
Total assets | 21,054,056 | 20,394,209 |
Liabilities: | ||
Mortgage notes payable, net | 1,962,471 | 2,385,470 |
Notes, net | 6,675,084 | 5,933,286 |
Line of credit and commercial paper | 354,381 | 499,183 |
Accounts payable and accrued expenses | 151,680 | 102,471 |
Accrued interest payable | 73,747 | 62,622 |
Lease liabilities | 333,312 | 0 |
Other liabilities | 312,849 | 358,563 |
Security deposits | 70,398 | 67,258 |
Distributions payable | 218,136 | 206,601 |
Total liabilities | 10,152,058 | 9,615,454 |
Commitments and contingencies | ||
Partners’ Capital: | ||
Accumulated other comprehensive income (loss) | (84,092) | (64,986) |
Noncontrolling Interests – Partially Owned Properties | (1,702) | (2,293) |
Total liabilities and equity/capital | 21,054,056 | 20,394,209 |
ERPOP [Member] | ||
ASSETS | ||
Land | 5,955,121 | 5,875,803 |
Depreciable property | 21,168,255 | 20,435,901 |
Projects under development | 143,434 | 109,409 |
Land held for development | 91,017 | 89,909 |
Investment in real estate | 27,357,827 | 26,511,022 |
Accumulated depreciation | (7,171,876) | (6,696,281) |
Investment in real estate, net | 20,185,951 | 19,814,741 |
Investments in unconsolidated entities | 52,474 | 58,349 |
Cash and cash equivalents | 28,777 | 47,442 |
Restricted deposits | 55,819 | 68,871 |
Right-of-use assets | 481,044 | |
Other assets | 249,991 | 404,806 |
Total assets | 21,054,056 | 20,394,209 |
Liabilities: | ||
Mortgage notes payable, net | 1,962,471 | 2,385,470 |
Notes, net | 6,675,084 | 5,933,286 |
Line of credit and commercial paper | 354,381 | 499,183 |
Accounts payable and accrued expenses | 151,680 | 102,471 |
Accrued interest payable | 73,747 | 62,622 |
Lease liabilities | 333,312 | |
Other liabilities | 312,849 | 358,563 |
Security deposits | 70,398 | 67,258 |
Distributions payable | 218,136 | 206,601 |
Total liabilities | 10,152,058 | 9,615,454 |
Commitments and contingencies | ||
Redeemable Limited Partners | 494,999 | 379,106 |
Partners’ Capital: | ||
Preference Units | 37,280 | 37,280 |
General Partner | 10,229,448 | 10,200,910 |
Limited Partners | 226,065 | 228,738 |
Accumulated other comprehensive income (loss) | (84,092) | (64,986) |
Total partners’ capital | 10,408,701 | 10,401,942 |
Noncontrolling Interests – Partially Owned Properties | (1,702) | (2,293) |
Total capital | 10,406,999 | 10,399,649 |
Total liabilities and equity/capital | $ 21,054,056 | $ 20,394,209 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS OF ERP OPERATING LIMITED PARTNERSHIP (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
REVENUES | ||||
Rental income | $ 685,120 | $ 652,677 | $ 2,016,796 | $ 1,925,128 |
Fee and asset management | $ 25 | $ 190 | $ 360 | $ 563 |
Type of Revenue [Extensible List] | us-gaap:ManagementServiceMember | us-gaap:ManagementServiceMember | us-gaap:ManagementServiceMember | us-gaap:ManagementServiceMember |
Total revenues | $ 685,145 | $ 652,867 | $ 2,017,156 | $ 1,925,691 |
EXPENSES | ||||
Property and maintenance | 114,966 | 110,541 | 338,497 | 322,487 |
Real estate taxes and insurance | 87,546 | 87,388 | 270,434 | 268,784 |
Property management | 21,940 | 22,247 | 72,705 | 69,175 |
General and administrative | 11,417 | 12,640 | 41,127 | 41,420 |
Depreciation | 211,478 | 194,618 | 616,201 | 583,869 |
Total expenses | 447,347 | 427,434 | 1,338,964 | 1,285,735 |
Net gain (loss) on sales of real estate properties | 130,565 | 114,672 | 269,400 | 256,834 |
Impairment | (702) | (702) | ||
Operating income | 368,363 | 339,403 | 947,592 | 896,088 |
Interest and other income | 631 | 7,864 | 2,221 | 14,860 |
Other expenses | (2,813) | (7,661) | (11,205) | (14,871) |
Interest: | ||||
Expense incurred, net | (85,936) | (111,219) | (289,776) | (321,454) |
Amortization of deferred financing costs | (2,881) | (3,276) | (8,664) | (9,054) |
Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of land parcels | 277,364 | 225,111 | 640,168 | 565,569 |
Income and other tax (expense) benefit | (265) | (280) | (749) | (767) |
Income (loss) from investments in unconsolidated entities | (1,152) | (985) | 66,906 | (2,993) |
Net gain (loss) on sales of land parcels | 1,899 | 2,077 | 995 | |
Net income | 277,846 | 223,846 | 708,402 | 562,804 |
Partially Owned Properties | (830) | (750) | (2,450) | (1,939) |
Net income attributable to controlling interests | $ 267,106 | $ 214,937 | $ 680,613 | $ 540,348 |
Earnings per Unit – basic: | ||||
Net income available to Units | $ 0.72 | $ 0.58 | $ 1.83 | $ 1.46 |
Earnings per Unit – diluted: | ||||
Net income available to Units | $ 0.71 | $ 0.58 | $ 1.82 | $ 1.46 |
Weighted average Units outstanding | 386,896 | 383,884 | 386,177 | 383,433 |
ERPOP [Member] | ||||
REVENUES | ||||
Rental income | $ 685,120 | $ 652,677 | $ 2,016,796 | $ 1,925,128 |
Fee and asset management | $ 25 | $ 190 | $ 360 | $ 563 |
Type of Revenue [Extensible List] | us-gaap:ManagementServiceMember | us-gaap:ManagementServiceMember | us-gaap:ManagementServiceMember | us-gaap:ManagementServiceMember |
Total revenues | $ 685,145 | $ 652,867 | $ 2,017,156 | $ 1,925,691 |
EXPENSES | ||||
Property and maintenance | 114,966 | 110,541 | 338,497 | 322,487 |
Real estate taxes and insurance | 87,546 | 87,388 | 270,434 | 268,784 |
Property management | 21,940 | 22,247 | 72,705 | 69,175 |
General and administrative | 11,417 | 12,640 | 41,127 | 41,420 |
Depreciation | 211,478 | 194,618 | 616,201 | 583,869 |
Total expenses | 447,347 | 427,434 | 1,338,964 | 1,285,735 |
Net gain (loss) on sales of real estate properties | 130,565 | 114,672 | 269,400 | 256,834 |
Impairment | (702) | (702) | ||
Operating income | 368,363 | 339,403 | 947,592 | 896,088 |
Interest and other income | 631 | 7,864 | 2,221 | 14,860 |
Other expenses | (2,813) | (7,661) | (11,205) | (14,871) |
Interest: | ||||
Expense incurred, net | (85,936) | (111,219) | (289,776) | (321,454) |
Amortization of deferred financing costs | (2,881) | (3,276) | (8,664) | (9,054) |
Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of land parcels | 277,364 | 225,111 | 640,168 | 565,569 |
Income and other tax (expense) benefit | (265) | (280) | (749) | (767) |
Income (loss) from investments in unconsolidated entities | (1,152) | (985) | 66,906 | (2,993) |
Net gain (loss) on sales of land parcels | 1,899 | 2,077 | 995 | |
Net income | 277,846 | 223,846 | 708,402 | 562,804 |
Partially Owned Properties | (830) | (750) | (2,450) | (1,939) |
Net income attributable to controlling interests | 277,016 | 223,096 | 705,952 | 560,865 |
ALLOCATION OF NET INCOME: | ||||
Preference Units | 773 | 773 | 2,318 | 2,318 |
General Partner | 266,333 | 214,164 | 678,295 | 538,030 |
Limited Partners | 9,910 | 8,159 | 25,339 | 20,517 |
Net income available to Units | $ 276,243 | $ 222,323 | $ 703,634 | $ 558,547 |
Earnings per Unit – basic: | ||||
Net income available to Units | $ 0.72 | $ 0.58 | $ 1.83 | $ 1.46 |
Weighted average Units outstanding | 383,709 | 380,912 | 383,142 | 380,791 |
Earnings per Unit – diluted: | ||||
Net income available to Units | $ 0.71 | $ 0.58 | $ 1.82 | $ 1.46 |
Weighted average Units outstanding | 386,896 | 383,884 | 386,177 | 383,433 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF ERP OPERATING LIMITED PARTNERSHIP (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Comprehensive income: | ||||
Net income | $ 277,846 | $ 223,846 | $ 708,402 | $ 562,804 |
Other comprehensive income (loss) – derivative instruments: | ||||
Unrealized holding gains (losses) arising during the period | 12,026 | (33,765) | 24,021 | |
Losses reclassified into earnings from other comprehensive income | 5,757 | 4,595 | 14,659 | 13,902 |
Other comprehensive income (loss) | 5,757 | 16,621 | (19,106) | 37,923 |
Comprehensive income | 283,603 | 240,467 | 689,296 | 600,727 |
Comprehensive (income) attributable to Noncontrolling Interests – Partially Owned Properties | (10,946) | (9,519) | (27,096) | (23,848) |
Comprehensive income attributable to controlling interests | 272,657 | 230,948 | 662,200 | 576,879 |
ERPOP [Member] | ||||
Comprehensive income: | ||||
Net income | 277,846 | 223,846 | 708,402 | 562,804 |
Other comprehensive income (loss) – derivative instruments: | ||||
Unrealized holding gains (losses) arising during the period | 12,026 | (33,765) | 24,021 | |
Losses reclassified into earnings from other comprehensive income | 5,757 | 4,595 | 14,659 | 13,902 |
Other comprehensive income (loss) | 5,757 | 16,621 | (19,106) | 37,923 |
Comprehensive income | 283,603 | 240,467 | 689,296 | 600,727 |
Comprehensive (income) attributable to Noncontrolling Interests – Partially Owned Properties | (830) | (750) | (2,450) | (1,939) |
Comprehensive income attributable to controlling interests | $ 282,773 | $ 239,717 | $ 686,846 | $ 598,788 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS OF ERP OPERATING LIMITED PARTNERSHIP (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 708,402 | $ 562,804 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 616,201 | 583,869 |
Amortization of deferred financing costs | 8,664 | 9,054 |
Amortization of above/below market lease intangibles | (53) | 3,294 |
Amortization of discounts and premiums on debt | 10,137 | 21,360 |
Amortization of deferred settlements on derivative instruments | 14,650 | 13,893 |
Amortization of right-of-use assets | 9,966 | |
Impairment | 702 | |
Write-off of pursuit costs | 4,098 | 3,125 |
(Income) loss from investments in unconsolidated entities | (66,906) | 2,993 |
Distributions from unconsolidated entities – return on capital | 2,486 | 1,885 |
Net (gain) loss on sales of real estate properties | (269,400) | (256,834) |
Net (gain) loss on sales of land parcels | (2,077) | (995) |
Net (gain) loss on debt extinguishment | 3,381 | 22,110 |
Compensation paid with Company Common Shares | 20,777 | 22,270 |
Changes in assets and liabilities: | ||
(Increase) decrease in other assets | (20,871) | (18,550) |
Increase (decrease) in accounts payable and accrued expenses | 57,822 | 58,756 |
Increase (decrease) in accrued interest payable | 11,125 | 11,097 |
Increase (decrease) in lease liabilities | (1,784) | |
Increase (decrease) in other liabilities | (15,578) | 1,190 |
Increase (decrease) in security deposits | 3,140 | 2,168 |
Net cash provided by operating activities | 1,094,180 | 1,044,191 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Investment in real estate – acquisitions | (1,147,236) | (708,092) |
Investment in real estate – development/other | (137,238) | (101,573) |
Capital expenditures to real estate | (128,335) | (138,119) |
Non-real estate capital additions | (2,139) | (3,155) |
Interest capitalized for real estate under development | (4,801) | (4,547) |
Proceeds from disposition of real estate, net | 692,649 | 691,526 |
Investments in unconsolidated entities | (9,073) | (4,860) |
Distributions from unconsolidated entities – return of capital | 78,262 | |
Purchase of investment securities and other investments | (269) | |
Net cash provided by (used for) investing activities | (658,180) | (268,820) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Debt financing costs | (12,025) | (4,355) |
Mortgage notes payable, net: | ||
Proceeds | 295,713 | |
Lump sum payoffs | (723,021) | (847,939) |
Scheduled principal repayments | (4,883) | (4,938) |
Notes, net: | ||
Proceeds | 1,194,468 | 497,010 |
Lump sum payoffs | (450,000) | |
Line of credit and commercial paper: | ||
Line of credit proceeds | 5,850,000 | 1,635,000 |
Line of credit repayments | (5,850,000) | (1,635,000) |
Commercial paper proceeds | 13,341,198 | 9,624,610 |
Commercial paper repayments | (13,486,000) | (9,425,000) |
Proceeds from (payments on) settlement of derivative instruments | (41,616) | 1,638 |
Proceeds from Employee Share Purchase Plan (ESPP) | 2,323 | 3,074 |
Proceeds from exercise of EQR options | 67,066 | 6,000 |
Payment of offering costs | (789) | (27) |
Other financing activities, net | (49) | (48) |
Contributions – Noncontrolling Interests – Partially Owned Properties | 4,594 | 125 |
Contributions – Limited Partners | 1 | |
Distributions: | ||
OP Units – General Partner | (620,391) | (583,184) |
Preference Units | (2,318) | (2,318) |
OP Units – Limited Partners | (22,202) | (21,040) |
Noncontrolling Interests – Partially Owned Properties | (6,404) | (8,882) |
Net cash provided by (used for) financing activities | (467,717) | (787,383) |
Net increase (decrease) in cash and cash equivalents and restricted deposits | (31,717) | (12,012) |
Cash and cash equivalents and restricted deposits, beginning of period | 116,313 | 100,762 |
Cash and cash equivalents and restricted deposits, end of period | 84,596 | 88,750 |
Cash and cash equivalents | 28,777 | 32,995 |
Restricted deposits | 55,819 | 55,755 |
SUPPLEMENTAL INFORMATION: | ||
Cash paid for interest, net of amounts capitalized | 246,410 | 268,966 |
Net cash paid for income and other taxes | 918 | 934 |
Amortization of deferred financing costs: | ||
Investment in real estate, net | 60 | |
Other assets | 1,808 | 1,809 |
Mortgage notes payable, net | 3,529 | 4,197 |
Notes, net | 3,387 | 3,048 |
Amortization of discounts and premiums on debt: | ||
Mortgage notes payable, net | 8,017 | 19,394 |
Notes, net | 2,120 | 1,966 |
Amortization of deferred settlements on derivative instruments: | ||
Other liabilities | (9) | (9) |
Accumulated other comprehensive income | 14,659 | 13,902 |
Write-off of pursuit costs: | ||
Investment in real estate, net | 4,042 | 3,079 |
Other assets | 48 | 13 |
Accounts payable and accrued expenses | 8 | 33 |
(Income) loss from investments in unconsolidated entities: | ||
Investments in unconsolidated entities | (67,900) | 1,973 |
Other liabilities | 994 | 1,020 |
Realized/unrealized (gain) loss on derivative instruments: | ||
Other assets | 2,002 | (24,021) |
Notes, net | 2,277 | (1,491) |
Other liabilities | 29,486 | 1,491 |
Accumulated other comprehensive income | (33,765) | 24,021 |
Investments in unconsolidated entities: | ||
Investments in unconsolidated entities | (6,973) | (3,180) |
Other liabilities | (2,100) | (1,680) |
Debt financing costs: | ||
Other assets | 145 | |
Mortgage notes payable, net | (2,354) | |
Notes, net | (10,454) | (4,355) |
Other liabilities | 638 | |
Right-of-use assets and lease liabilities initial measurement and reclassifications: | ||
Right-of-use assets | (491,010) | |
Other assets | 184,116 | |
Lease liabilities | 335,096 | |
Other liabilities | (28,202) | |
Mortgage Notes Payable, Net [Member] | ||
Mortgage notes payable, net: | ||
Net gain (loss) on debt extinguishment | (3,381) | (22,110) |
ERPOP [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | 708,402 | 562,804 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 616,201 | 583,869 |
Amortization of deferred financing costs | 8,664 | 9,054 |
Amortization of above/below market lease intangibles | (53) | 3,294 |
Amortization of discounts and premiums on debt | 10,137 | 21,360 |
Amortization of deferred settlements on derivative instruments | 14,650 | 13,893 |
Amortization of right-of-use assets | 9,966 | |
Impairment | 702 | |
Write-off of pursuit costs | 4,098 | 3,125 |
(Income) loss from investments in unconsolidated entities | (66,906) | 2,993 |
Distributions from unconsolidated entities – return on capital | 2,486 | 1,885 |
Net (gain) loss on sales of real estate properties | (269,400) | (256,834) |
Net (gain) loss on sales of land parcels | (2,077) | (995) |
Net (gain) loss on debt extinguishment | 3,381 | 22,110 |
Compensation paid with Company Common Shares | 20,777 | 22,270 |
Changes in assets and liabilities: | ||
(Increase) decrease in other assets | (20,871) | (18,550) |
Increase (decrease) in accounts payable and accrued expenses | 57,822 | 58,756 |
Increase (decrease) in accrued interest payable | 11,125 | 11,097 |
Increase (decrease) in lease liabilities | (1,784) | |
Increase (decrease) in other liabilities | (15,578) | 1,190 |
Increase (decrease) in security deposits | 3,140 | 2,168 |
Net cash provided by operating activities | 1,094,180 | 1,044,191 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Investment in real estate – acquisitions | (1,147,236) | (708,092) |
Investment in real estate – development/other | (137,238) | (101,573) |
Capital expenditures to real estate | (128,335) | (138,119) |
Non-real estate capital additions | (2,139) | (3,155) |
Interest capitalized for real estate under development | (4,801) | (4,547) |
Proceeds from disposition of real estate, net | 692,649 | 691,526 |
Investments in unconsolidated entities | (9,073) | (4,860) |
Distributions from unconsolidated entities – return of capital | 78,262 | |
Purchase of investment securities and other investments | (269) | |
Net cash provided by (used for) investing activities | (658,180) | (268,820) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Debt financing costs | (12,025) | (4,355) |
Mortgage notes payable, net: | ||
Proceeds | 295,713 | |
Lump sum payoffs | (723,021) | (847,939) |
Scheduled principal repayments | (4,883) | (4,938) |
Notes, net: | ||
Proceeds | 1,194,468 | 497,010 |
Lump sum payoffs | (450,000) | |
Line of credit and commercial paper: | ||
Line of credit proceeds | 5,850,000 | 1,635,000 |
Line of credit repayments | (5,850,000) | (1,635,000) |
Commercial paper proceeds | 13,341,198 | 9,624,610 |
Commercial paper repayments | (13,486,000) | (9,425,000) |
Proceeds from (payments on) settlement of derivative instruments | (41,616) | 1,638 |
Proceeds from Employee Share Purchase Plan (ESPP) | 2,323 | 3,074 |
Proceeds from exercise of EQR options | 67,066 | 6,000 |
Payment of offering costs | (789) | (27) |
Other financing activities, net | (49) | (48) |
Contributions – Noncontrolling Interests – Partially Owned Properties | 4,594 | 125 |
Contributions – Limited Partners | 1 | |
Distributions: | ||
OP Units – General Partner | (620,391) | (583,184) |
Preference Units | (2,318) | (2,318) |
OP Units – Limited Partners | (22,202) | (21,040) |
Noncontrolling Interests – Partially Owned Properties | (6,404) | (8,882) |
Net cash provided by (used for) financing activities | (467,717) | (787,383) |
Net increase (decrease) in cash and cash equivalents and restricted deposits | (31,717) | (12,012) |
Cash and cash equivalents and restricted deposits, beginning of period | 116,313 | 100,762 |
Cash and cash equivalents and restricted deposits, end of period | 84,596 | 88,750 |
Cash and cash equivalents | 28,777 | 32,995 |
Restricted deposits | 55,819 | 55,755 |
SUPPLEMENTAL INFORMATION: | ||
Cash paid for interest, net of amounts capitalized | 246,410 | 268,966 |
Net cash paid for income and other taxes | 918 | 934 |
Amortization of deferred financing costs: | ||
Investment in real estate, net | (60) | |
Other assets | 1,808 | 1,809 |
Mortgage notes payable, net | 3,529 | 4,197 |
Notes, net | 3,387 | 3,048 |
Amortization of discounts and premiums on debt: | ||
Mortgage notes payable, net | 8,017 | 19,394 |
Notes, net | 2,120 | 1,966 |
Amortization of deferred settlements on derivative instruments: | ||
Other liabilities | (9) | (9) |
Accumulated other comprehensive income | 14,659 | 13,902 |
Write-off of pursuit costs: | ||
Investment in real estate, net | 4,042 | 3,079 |
Other assets | 48 | 13 |
Accounts payable and accrued expenses | 8 | 33 |
(Income) loss from investments in unconsolidated entities: | ||
Investments in unconsolidated entities | (67,900) | 1,973 |
Other liabilities | 994 | 1,020 |
Realized/unrealized (gain) loss on derivative instruments: | ||
Other assets | 2,002 | (24,021) |
Notes, net | 2,277 | (1,491) |
Other liabilities | 29,486 | 1,491 |
Accumulated other comprehensive income | (33,765) | 24,021 |
Investments in unconsolidated entities: | ||
Investments in unconsolidated entities | (6,973) | (3,180) |
Other liabilities | (2,100) | (1,680) |
Debt financing costs: | ||
Other assets | 145 | |
Mortgage notes payable, net | (2,354) | |
Notes, net | (10,454) | (4,355) |
Other liabilities | 638 | |
Right-of-use assets and lease liabilities initial measurement and reclassifications: | ||
Right-of-use assets | (491,010) | |
Other assets | 184,116 | |
Lease liabilities | 335,096 | |
Other liabilities | (28,202) | |
ERPOP [Member] | Mortgage Notes Payable, Net [Member] | ||
Mortgage notes payable, net: | ||
Net gain (loss) on debt extinguishment | $ (3,381) | $ (22,110) |
CONSOLIDATED STATEMENTS OF CH_3
CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL OF ERP OPERATING LIMITED PARTNERSHIP (Unaudited) - USD ($) $ in Thousands | Total | ERPOP [Member] | PREFERRED SHARESERPOP [Member] | General Partner [Member] | General Partner [Member]ERPOP [Member] | Limited PartnerERPOP [Member] | ACCUMULATED OTHER COMPREHENSIVE (LOSS) [Member]ERPOP [Member] | DISTRIBUTIONS | Partially Owned PropertiesERPOP [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 | 356 | (356) | |||||||
Exercise of EQR share options | 6,000 | ||||||||
EQR's Employee Share Purchase Plan (ESPP) | $ 3,074 | ||||||||
Share-based employee compensation expense: | |||||||||
EQR restricted shares | 6,804 | ||||||||
EQR share options | 9,206 | ||||||||
EQR ESPP discount | 604 | ||||||||
Net income available to Units - General Partner | $ 538,030 | 538,030 | |||||||
OP Units General Partner distributions | (596,735) | ||||||||
Offering costs | (27) | ||||||||
Supplemental Executive Retirement Plan (SERP) | (533) | ||||||||
Change in market value of Redeemable Limited Partners | (14,361) | ||||||||
Adjustment for Limited Partners ownership in Operating Partnership | 2,619 | (2,619) | |||||||
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 | 356 | (356) | |||||||
Equity compensation associated with Units - Limited Partners | 11,074 | ||||||||
Net income available to Units - Limited Partners | 20,517 | 20,517 | |||||||
Units - Limited Partners distributions | (21,560) | ||||||||
Change in carrying value of Redeemable Limited Partners | 77 | ||||||||
Adjustment for Limited Partners ownership in Operating Partnership | 2,619 | (2,619) | |||||||
Accumulated other comprehensive income (loss) – derivative instruments: | |||||||||
Unrealized holding gains (losses) arising during the period | $ 24,021 | 24,021 | 24,021 | ||||||
Losses reclassified into earnings from other comprehensive income | (13,902) | (13,902) | 13,902 | ||||||
NONCONTROLLING INTERESTS PARTIALLY OWNED PROPERTIES | |||||||||
Net income attributable to Noncontrolling Interests | 562,804 | 562,804 | 1,939 | ||||||
Contributions by Noncontrolling Interests | 125 | ||||||||
Distributions to Noncontrolling Interests | (8,930) | ||||||||
Balance, end of period at Sep. 30, 2018 | 37,280 | 10,248,833 | 233,825 | (50,689) | |||||
Balance, end of period at Sep. 30, 2018 | (2,158) | ||||||||
DISTRIBUTIONS | |||||||||
Distributions declared per Unit outstanding | $ 1.62 | ||||||||
Balance, beginning of year at Jun. 30, 2018 | 37,280 | 10,238,467 | 232,995 | (67,310) | |||||
Balance, beginning of year at Jun. 30, 2018 | (1,646) | ||||||||
OP Unit Issuance: | |||||||||
Conversion of OP Units held by Limited Partners into OP Units held by General Partner | 25 | (25) | |||||||
Exercise of EQR share options | 3,383 | ||||||||
EQR's Employee Share Purchase Plan (ESPP) | 893 | ||||||||
Share-based employee compensation expense: | |||||||||
EQR restricted shares | 1,641 | ||||||||
EQR share options | 670 | ||||||||
EQR ESPP discount | 204 | ||||||||
Net income available to Units - General Partner | 214,164 | 214,164 | |||||||
OP Units General Partner distributions | (198,939) | ||||||||
Supplemental Executive Retirement Plan (SERP) | 5 | ||||||||
Change in market value of Redeemable Limited Partners | (14,189) | ||||||||
Adjustment for Limited Partners ownership in Operating Partnership | 2,509 | (2,509) | |||||||
LIMITED PARTNERS | |||||||||
Conversion of OP Units held by Limited Partners into OP Units held by General Partner | 25 | (25) | |||||||
Equity compensation associated with Units - Limited Partners | 2,958 | ||||||||
Net income available to Units - Limited Partners | 8,159 | 8,159 | |||||||
Units - Limited Partners distributions | (7,186) | ||||||||
Change in carrying value of Redeemable Limited Partners | (567) | ||||||||
Adjustment for Limited Partners ownership in Operating Partnership | 2,509 | (2,509) | |||||||
Accumulated other comprehensive income (loss) – derivative instruments: | |||||||||
Unrealized holding gains (losses) arising during the period | 12,026 | 12,026 | 12,026 | ||||||
Losses reclassified into earnings from other comprehensive income | (4,595) | (4,595) | 4,595 | ||||||
NONCONTROLLING INTERESTS PARTIALLY OWNED PROPERTIES | |||||||||
Net income attributable to Noncontrolling Interests | 223,846 | 223,846 | 750 | ||||||
Distributions to Noncontrolling Interests | (1,262) | ||||||||
Balance, end of period at Sep. 30, 2018 | 37,280 | 10,248,833 | 233,825 | (50,689) | |||||
Balance, end of period at Sep. 30, 2018 | (2,158) | ||||||||
DISTRIBUTIONS | |||||||||
Distributions declared per Unit outstanding | 0.54 | ||||||||
Balance, beginning of year at Dec. 31, 2018 | 37,280 | 10,200,910 | 228,738 | (64,986) | |||||
Balance, beginning of year at Dec. 31, 2018 | (2,293) | ||||||||
OP Unit Issuance: | |||||||||
Conversion of OP Units held by Limited Partners into OP Units held by General Partner | 9,843 | (9,843) | |||||||
Exercise of EQR share options | 67,066 | ||||||||
EQR's Employee Share Purchase Plan (ESPP) | 2,323 | ||||||||
Share-based employee compensation expense: | |||||||||
EQR restricted shares | 10,304 | ||||||||
EQR share options | 2,185 | ||||||||
EQR ESPP discount | 502 | ||||||||
Net income available to Units - General Partner | 678,295 | 678,295 | |||||||
OP Units General Partner distributions | (631,635) | ||||||||
Offering costs | (789) | ||||||||
Supplemental Executive Retirement Plan (SERP) | (1,539) | ||||||||
Change in market value of Redeemable Limited Partners | (114,936) | ||||||||
Adjustment for Limited Partners ownership in Operating Partnership | 6,919 | (6,919) | |||||||
LIMITED PARTNERS | |||||||||
Conversion of OP Units held by Limited Partners into OP Units held by General Partner | 9,843 | (9,843) | |||||||
Equity compensation associated with Units - Limited Partners | 12,200 | ||||||||
Net income available to Units - Limited Partners | 25,339 | 25,339 | |||||||
Units - Limited Partners distributions | (22,493) | ||||||||
Change in carrying value of Redeemable Limited Partners | (957) | ||||||||
Adjustment for Limited Partners ownership in Operating Partnership | 6,919 | (6,919) | |||||||
Accumulated other comprehensive income (loss) – derivative instruments: | |||||||||
Unrealized holding gains (losses) arising during the period | (33,765) | (33,765) | (33,765) | ||||||
Losses reclassified into earnings from other comprehensive income | (14,659) | (14,659) | 14,659 | ||||||
NONCONTROLLING INTERESTS PARTIALLY OWNED PROPERTIES | |||||||||
Net income attributable to Noncontrolling Interests | 708,402 | 708,402 | 2,450 | ||||||
Contributions by Noncontrolling Interests | 4,594 | ||||||||
Distributions to Noncontrolling Interests | (6,453) | ||||||||
Balance, end of period at Sep. 30, 2019 | 37,280 | 10,229,448 | 226,065 | (84,092) | |||||
Balance, end of period at Sep. 30, 2019 | (1,702) | ||||||||
DISTRIBUTIONS | |||||||||
Distributions declared per Unit outstanding | 1.7025 | ||||||||
Balance, beginning of year at Jun. 30, 2019 | 37,280 | 10,206,098 | 227,320 | (89,849) | |||||
Balance, beginning of year at Jun. 30, 2019 | (1,298) | ||||||||
OP Unit Issuance: | |||||||||
Conversion of OP Units held by Limited Partners into OP Units held by General Partner | 4,972 | (4,972) | |||||||
Exercise of EQR share options | 18,579 | ||||||||
EQR's Employee Share Purchase Plan (ESPP) | $ 671 | ||||||||
Share-based employee compensation expense: | |||||||||
EQR restricted shares | 2,322 | ||||||||
EQR share options | 503 | ||||||||
EQR ESPP discount | 137 | ||||||||
Net income available to Units - General Partner | 266,333 | 266,333 | |||||||
OP Units General Partner distributions | (210,719) | ||||||||
Offering costs | (634) | ||||||||
Change in market value of Redeemable Limited Partners | (57,962) | ||||||||
Adjustment for Limited Partners ownership in Operating Partnership | (852) | 852 | |||||||
LIMITED PARTNERS | |||||||||
Conversion of OP Units held by Limited Partners into OP Units held by General Partner | 4,972 | (4,972) | |||||||
Equity compensation associated with Units - Limited Partners | 1,371 | ||||||||
Net income available to Units - Limited Partners | 9,910 | 9,910 | |||||||
Units - Limited Partners distributions | (7,414) | ||||||||
Change in carrying value of Redeemable Limited Partners | (1,002) | ||||||||
Adjustment for Limited Partners ownership in Operating Partnership | (852) | 852 | |||||||
Accumulated other comprehensive income (loss) – derivative instruments: | |||||||||
Losses reclassified into earnings from other comprehensive income | (5,757) | (5,757) | 5,757 | ||||||
NONCONTROLLING INTERESTS PARTIALLY OWNED PROPERTIES | |||||||||
Net income attributable to Noncontrolling Interests | $ 277,846 | $ 277,846 | 830 | ||||||
Distributions to Noncontrolling Interests | (1,234) | ||||||||
Balance, end of period at Sep. 30, 2019 | $ 37,280 | $ 10,229,448 | $ 226,065 | $ (84,092) | |||||
Balance, end of period at Sep. 30, 2019 | $ (1,702) | ||||||||
DISTRIBUTIONS | |||||||||
Distributions declared per Unit outstanding | $ 0.5675 |
Business
Business | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business | 1. Business Equity Residential (“EQR”) is an S&P 500 company focused on the acquisition, development and management of rental apartment properties located in urban and high-density suburban communities, a business that is conducted on its behalf by ERP Operating Limited Partnership (“ERPOP”). EQR is a Maryland real estate investment trust (“REIT”) formed in March 1993 and ERPOP is an Illinois limited partnership formed in May 1993. ERPOP. ERPOP. EQR is the general partner of, and as of September 30, 2019 owned an approximate 96.4% 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 September 30, 2019, the Company, directly or indirectly through investments in title holding entities, owned all or a portion of 308 properties located in 10 states and the District of Columbia consisting of 80,299 apartment units. The ownership breakdown includes (table does not include various uncompleted development properties): Properties Apartment Units Wholly Owned Properties 290 76,602 Master-Leased Properties – Consolidated 1 162 Partially Owned Properties – Consolidated 17 3,535 308 80,299 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. 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 nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. 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, 2018 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, 2018 . 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 may incur both federal and state income taxes on any taxable income of such entities after consideration of any net operating losses. In December 2017, H.R. 1, informally titled the Tax Cuts and Jobs Act (the “Tax Act”), became law. As of September 30, 2019, the Tax Act did not 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. Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“ FASB”) Recently Adopted Accounting Pronouncements In FASB Revenue from Contracts with Customers For the remaining approximately 6% of rental income that is subject to the revenue recognition standard, the Company’s disaggregated revenue streams are disclosed in the table included in the Company’s and the Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2018 and are comparable with the percentage of rental income for the nine months and quarter ended September 30, 2019. 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. Additionally, as part of the revenue recognition standard, the FASB issued amendments related to partial sales of real estate. Adoption of the 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 standards. In • Lessors – Leases are accounted for using an approach that is substantially equivalent to existing guidance for operating, sales-type and financing leases, but aligned with the revenue recognition standard. Lessors are required to allocate lease payments to separate lease and non-lease components of each lease agreement, with the non-lease com ponents evaluated under the revenue recognition standard. • Lessees – Leases are 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 determines 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 (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 are accounted for similar to existing guidance for operating leases. The Company adopted this standard as required effective January 1, 2019 using a modified retrospective method and the Company applied the guidance as of the adoption date and elected certain practical expedients, as described below. The standard impacted our consolidated balance sheets but did not impact our consolidated statements of operations. Right-of-use (“ROU”) assets and lease liabilities where the Company is the lessee were recognized for various corporate office leases and ground leases. The Company recorded ROU assets and related lease liabilities to its opening balance sheet upon adoption on January 1, 2019 of $434.2 million and $278.3 million, respectively. The Company calculated the net present value of the lease liabilities on January 1, 2019 and reclassed the following amounts from other assets and other liabilities to record our initial ROU assets (amounts in thousands): January 1, 2019 Balance Sheet Reclass: Initial lease liabilities $ 278,287 Reclassifications: Prepaid ground leases 17,886 Other Assets Ground lease intangibles – below market, net 166,230 Other Assets Ground lease intangibles – above market, net (2,110 ) Other Liabilities Straight-line rent liabilities (1) (26,092 ) Other Liabilities Initial right-of-use assets $ 434,201 (1) Straight-line rent liabilities relate to corporate office leases and certain ground leases. The Company elected the practical expedient to not reassess the classification of existing operating leases. As of January 1, 2019, any new or modified ground leases may be classified as financing leases unless they meet certain conditions. When there is a material lease modification, the Company is required to reassess the classification and remeasure the lease liability. In July 2018, the FASB issued an amendment to the leases standard, which includes a practical expedient that provides lessors an option not to separate lease and non-lease components when certain criteria are met and instead account for those components as a single component under the leases standard. The amendment also provides a transition option that permits the application of the new guidance as of the adoption date rather than to all periods presented. The Company elected the practical expedient to account for both its lease and non-lease components as a single component under the leases standard and elected the new transition option as of the date of adoption effective January 1, 2019. See Note 8 for additional discussion regarding the new lease standard. 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 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 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 Company adopted this standard as required effective January 1, 2019 and it did not have a material effect on its consolidated results of operations or financial position. |
Equity, Capital and Other Inter
Equity, Capital and Other Interests | 9 Months Ended |
Sep. 30, 2019 | |
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 nine months ended September 30, 2019 and 2018: 2019 2018 Common Shares Common Shares outstanding at January 1, 369,405,161 368,018,082 Common Shares Issued: Conversion of OP Units 294,400 12,510 Exercise of share options 1,430,048 194,796 Employee Share Purchase Plan (ESPP) 37,263 61,321 Restricted share grants, net 160,460 122,877 Common Shares outstanding at September 30, 371,327,332 368,409,586 Units Units outstanding at January 1, 13,904,035 13,768,438 Restricted unit grants, net 140,055 267,074 Conversion of OP Units to Common Shares (294,400 ) (12,510 ) Units outstanding at September 30, 13,749,690 14,023,002 Total Common Shares and Units outstanding at September 30, 385,077,022 382,432,588 Units Ownership Interest in Operating Partnership 3.6 % 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 September 30, 2019 and December 31, 2018. The The 2019 2018 Balance at January 1, $ 379,106 $ 366,955 Change in market value 114,936 14,361 Change in carrying value 957 (77 ) Balance at September 30, $ 494,999 $ 381,239 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 100,000,000 The Amounts in thousands Annual Call Dividend Per September 30, December 31, Date (1) Share (2) 2019 2018 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 September 30, 2019 and December 31, 2018 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 nine months ended September 30, 2019 and 2018: 2019 2018 General and Limited Partner Units General and Limited Partner Units outstanding at January 1, 383,309,196 381,786,520 Issued to General Partner: Exercise of EQR share options 1,430,048 194,796 EQR’s Employee Share Purchase Plan (ESPP) 37,263 61,321 EQR’s restricted share grants, net 160,460 122,877 Issued to Limited Partners: Restricted unit grants, net 140,055 267,074 General and Limited Partner Units outstanding at September 30, 385,077,022 382,432,588 Limited Partner Units Limited Partner Units outstanding at January 1, 13,904,035 13,768,438 Limited Partner restricted unit grants, net 140,055 267,074 Conversion of Limited Partner OP Units to EQR Common Shares (294,400 ) (12,510 ) Limited Partner Units outstanding at September 30, 13,749,690 14,023,002 Limited Partner Units Ownership Interest in Operating Partnership 3.6 % 3.7 % The Limited Partners of the Operating Partnership as of September 30, 2019 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 September 30, 2019 . 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 nine months ended September 30, 2019 and 2018 (amounts in thousands): 2019 2018 Balance at January 1, $ 379,106 $ 366,955 Change in market value 114,936 14,361 Change in carrying value 957 (77 ) Balance at September 30, $ 494,999 $ 381,239 EQR contributes all net proceeds from its various equity offerings (including proceeds from exercise of options for Common ERPOP. The December 31, 2018 Amounts in thousands Annual Call Dividend Per September 30, December 31, Date (1) Unit (2) 2019 2018 Preference Units: 8.29% Series K Cumulative Redeemable Preference Units; liquidation value $50 per unit; 745,600 units issued and outstanding as of September 30, 2019 and December 31, 2018 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 EQR and ERPOP currently have an active universal shelf registration statement for the issuance of equity and debt securities that automatically became effective upon filing with the SEC in June 2019 and expires in June 2022. Per the terms of ERPOP’s partnership agreement, EQR contributes the net proceeds of all equity offerings to the capital of ERPOP in exchange for additional OP Units (on a one-for-one Common Share per OP Unit basis) or preference units (on a one-for-one preferred share per preference unit basis). The Company has an At-The-Market (“ATM”) The Company may repurchase up to 13.0 million Common Shares under its share repurchase program. No open market repurchases have occurred since 2008, and no repurchases of any kind have occurred since February 2014. As of September 30, 2019, EQR has remaining authorization to repurchase up to 13.0 million of its shares under the repurchase program. |
Real Estate
Real Estate | 9 Months Ended |
Sep. 30, 2019 | |
Real Estate [Abstract] | |
Real Estate | 4. Real Estate The following table summarizes the carrying amounts for the Company’s investment in real estate (at cost) as of September 30, 2019 and December 31, 2018 (amounts in thousands): September 30, 2019 December 31, 2018 Land $ 5,955,121 $ 5,875,803 Depreciable property: Buildings and improvements 18,796,370 18,232,625 Furniture, fixtures and equipment 1,875,121 1,722,231 In-Place lease intangibles 496,764 481,045 Projects under development: Land 23,531 25,429 Construction-in-progress 119,903 83,980 Land held for development: Land 64,660 61,038 Construction-in-progress 26,357 28,871 Investment in real estate 27,357,827 26,511,022 Accumulated depreciation (7,171,876 ) (6,696,281 ) Investment in real estate, net $ 20,185,951 $ 19,814,741 During the nine months ended September 30, 2019, the Company acquired the following from unaffiliated parties (purchase price in thousands): Properties Apartment Units Purchase Price Rental Properties – Consolidated (1) 10 2,728 $ 1,124,580 Land Parcels (three) (2) — — 19,832 Total 10 2,728 $ 1,144,412 (1) Purchase price includes an allocation of approximately $193.4 million to land and $933.3 million to depreciable property (inclusive of capitalized closing costs). (2) Purchase price includes an allocation of approximately $16.7 million to vacant land and $3.8 million to construction-in-progress (inclusive of capitalized closing costs). Land parcels include entry into one long-term ground lease for a land project under development in the Washington D.C. market. See Notes 6 and 8 for additional discussion. During the nine months ended September 30, 2019, the Company disposed of the following to unaffiliated parties (sales price in thousands): Properties Apartment Units Sales Price Rental Properties – Consolidated 9 1,202 $ 706,675 Rental Properties – Unconsolidated (1) 2 945 394,500 Land Parcels (one) — — 1,900 Total 11 2,147 $ 1,103,075 ( 1 ) The Company owned a 20% interest in both unconsolidated rental properties. Sales price listed is the gross sales price. The Company received net sales proceeds of approximately $78.3 million. The Company recognized a net gain on sales of real estate properties of approximately $269.4 million, a net gain on sales of unconsolidated entities of approximately $69.5 million and a net gain on sales of land parcels of approximately $2.1 million on the above sales. |
Commitments to Acquire_Dispose
Commitments to Acquire/Dispose of Real Estate | 9 Months Ended |
Sep. 30, 2019 | |
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 agreements to acquire rental properties or land parcels as of the date of filing. The Company has entered into separate agreements to dispose of the following (sales price in thousands): Properties Apartment Units Sales Price Rental Properties – Consolidated 1 939 $ 254,000 Land Parcels (three) — — 55,350 Total 1 939 $ 309,350 The closing of pending transactions is subject to certain conditions and restrictions; therefore, there can be no assurance that the transactions will be consummated or that the final terms will not differ in material respects from any agreements summarized above. See Note 14 for discussion of the properties acquired or disposed of, if any, subsequent to September 30, 2019. |
Investments in Partially Owned
Investments in Partially Owned Entities | 9 Months Ended |
Sep. 30, 2019 | |
Investments In Partially Owned Entities [Abstract] | |
Investments in Partially Owned Entities | 6. Investments in Partially Owned The Consolidated Variable Interest Entities (“VIEs”) In accordance with accounting standards for consolidation of VIEs, the Company consolidates ERPOP on EQR’s financial statements. 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. The Company has various equity interests in certain joint ventures owning 17 properties containing 3,535 apartment units. The Company is the general partner or managing member of these joint ventures and is responsible for managing the operations and affairs of the joint ventures as well as making all decisions regarding the businesses of the joint ventures. The limited partners or non-managing members are not able to exercise substantive kick-out or participating rights. As a result, the joint ventures qualify as 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 joint ventures are required to be consolidated on the Company’s financial statements. During the nine months ended September 30, 2019, the Company entered into a consolidated joint venture which is owned 90% by the Company and 10% by its joint venture partner, who is the general partner and developer. The joint venture has been deemed to be a VIE and is consolidated due to the Company being the primary beneficiary. The joint venture owns a land parcel which it is currently developing into a multifamily rental property. The consolidated assets and liabilities related to the VIEs discussed above were approximately $711.5 million and $325.5 million, respectively, at September 30, 2019 Investments in Unconsolidated Entities The following table and information summarizes the Company’s investments in unconsolidated entities, which are accounted for under the equity method of accounting as the requirements for consolidation are not met, as of September 30, 2019 and December 31, 2018 (amounts in thousands except for ownership percentage): September 30, 2019 December 31, 2018 Ownership Percentage Investments in Unconsolidated Entities: Wisconsin Place Developer (VIE) (1) $ 40,896 $ 42,365 33.3% Operating Properties (Non-VIE) (2) — 10,494 20.0% Real Estate Technology/Other 11,578 5,490 Varies Investments in Unconsolidated Entities $ 52,474 $ 58,349 (1) Represents an unconsolidated interest in an entity that owns the land underlying one of the consolidated joint venture properties noted above and owns and operates a related parking facility. 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. (2) Includes two joint ventures under separate agreements with the same partner totaling 945 apartment units as of December 31, 2018. During the nine months ended September 30, 2019, the Company and its joint venture partner sold both properties under separate agreements to unaffiliated parties. See Note 4 for additional discussion. |
Restricted Deposits
Restricted Deposits | 9 Months Ended |
Sep. 30, 2019 | |
Deposits Restricted [Abstract] | |
Restricted Deposits | 7. Restricted Deposits The following table presents the Company’s restricted deposits as of September 30, 2019 and December 31, 2018 (amounts in thousands): September 30, 2019 December 31, 2018 Mortgage escrow deposits: Real estate taxes and insurance $ — $ 876 Replacement reserves 8,523 8,641 Mortgage principal reserves/sinking funds 8,758 9,754 Other — 852 Mortgage escrow deposits 17,281 20,123 Restricted cash: Earnest money on pending acquisitions — 5,000 Restricted deposits on real estate investments 665 540 Resident security and utility deposits 36,888 35,659 Other 985 7,549 Restricted cash 38,538 48,748 Restricted deposits $ 55,819 $ 68,871 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 8 . Leases Lessor Accounting The Company is the lessor for its residential and retail leases (including commercial leases) and these leases will continue to be accounted for as operating leases under the new standard as described in Note 2. Therefore, the Company did not have significant changes in the accounting for its lease revenues. For the nine months ended September 30, 2019, approximately 97.1% of the Company’s total lease revenue is generated from residential apartment leases that are generally for twelve months or less in length. The residential apartment leases may include lease income related to such items as parking, storage and pet rent that the Company treats as a single lease component because the amenities cannot be leased on their own and the timing and pattern of revenue recognition are the same. The collection of lease payments at lease commencement is probable and therefore the Company subsequently recognizes lease income over the lease term on a straight-line basis. Residential leases are renewable upon consent of both parties on an annual or monthly basis. For the nine months ended September 30, 2019, approximately 2.9% of the Company’s total lease revenue is generated by retail leases that are generally for terms ranging between 5-10 years. The retail leases generally consist of ground floor retail spaces and master-leased parking garages that serve as additional amenities for our residents. The retail leases may include lease income related to such items as parking and storage rent that the Company treats as a single lease component because the amenities cannot be leased on their own and the timing and pattern of revenue recognition are the same. The collection of lease payments at lease commencement is probable and therefore the Company subsequently recognizes lease income over the lease term on a straight-line basis. Retail leases are renewable with market-based renewal options. The Company elected the practical expedient to account for both its lease and non-lease components (specifically common area maintenance charges) as a single lease component under the leases standard. The following table presents the lease income types relating to lease payments for residential and retail leases for the nine months and quarter ended September 30, 2019 (amounts in thousands): Nine Months Ended September 30, 2019 Quarter Ended September 30, 2019 Lease Income Type Residential Leases Retail Leases Total Residential Leases Retail Leases Total Residential and retail rent $ 1,801,749 $ 54,616 $ 1,856,365 $ 611,020 $ 18,453 $ 629,473 Parking rent 27,874 259 28,133 9,405 100 9,505 Storage rent 2,796 51 2,847 940 20 960 Pet rent 8,714 — 8,714 2,916 — 2,916 Total lease revenue (1) $ 1,841,133 $ 54,926 $ 1,896,059 $ 624,281 $ 18,573 $ 642,854 (1) Excludes other rental income of $120.7 million for the nine months ended September 30, 2019 and $42.2 million for the quarter ended September 30, 2019, which is accounted for under the revenue recognition standard. Lessee Accounting The Company is the lessee under various corporate office and ground leases for which the Company recognized ROU assets and related lease liabilities effective January 1, 2019. The following table presents the Company’s ROU assets and related lease liabilities as of September 30, 2019 (amounts in thousands): 2019 Right-of-use assets: Corporate office leases $ 43,739 Ground leases (finance) 23,201 Ground leases (operating) 414,104 Right-of-use assets $ 481,044 Lease liabilities: Corporate office leases $ 45,237 Ground leases (finance) 23,210 Ground leases (operating) 264,865 Lease liabilities $ 333,312 As the standard requires the recognition of a liability for the lease obligation, discount rates are used to determine the net present value of the lease payments. The discount rate for the lease is the rate implicit in the lease or, if that rate cannot be readily determined, the incremental borrowing rate. As the Company does not know the amount of the lessors’ initial direct costs, it cannot readily determine the rate implicit in the lease and instead must apply the incremental borrowing rate. The Company has estimated the discount rate ranges of 3.3% to 3.9% for corporate office leases and 4.4% to 5.5% for ground leases at adoption. Since the Company’s credit backs the corporate office lease obligations and the lease terms are generally ten years or less, the discount rate range was estimated by using the Company’s borrowing rates for actual pricing data. The discount rate range for ground leases takes into account various factors, including the longer life of the ground leases, and was estimated by using the Company’s borrowing rates for actual pricing data through 30 years and other long-term market rates. Corporate office leases The Company leases nine corporate offices with remaining lease terms of one to 23 years (inclusive of applicable extension options). The Company’s corporate office leases continue to be accounted for as operating leases under the new standard. During the quarter ended September 30, 2019, the Company modified two office leases that continue to be classified as operating leases and recorded an additional lease liability and ROU asset at initial remeasurement of approximately $29.1 million. The Company leases its corporate headquarters from an entity affiliated with EQR’s Chairman of the Board of Trustees. The lease term expires on November 30, 2032 and contains two five-year extension options. The amount incurred for such office space for the nine months and quarter ended September 30, 2019 was approximately $2.0 million and $0.7 million, respectively. The Company believes this amount approximates market rates for such rental space. Ground leases The Company maintains long-term ground leases for 14 operating properties and one project under development with lease expiration dates ranging from 2042 through 2113 (inclusive of applicable purchase options). The Company owns the building and improvements. Based on its election of the package of practical expedients, the Company was not required to reassess the classification of existing ground leases and therefore the 14 operating property leases continue to be accounted for as operating leases. During the quarter ended September 30, 2019, the Company entered into a new ground lease for a project under development that is being accounted for as a finance lease and recorded an initial lease liability and ROU asset of approximately $23.2 million. Additional disclosures The following table illustrates the quantitative disclosures for lessees as of and for the nine months and quarter ended September 30, 2019 (amounts in thousands): Nine Months Ended September 30, 2019 Quarter Ended September 30, 2019 Lease cost: Finance lease cost: Amortization of right-of-use assets $ — $ — Interest on lease liabilities (capitalized) 55 55 Operating lease cost: Corporate office leases 2,753 935 Ground leases 16,650 5,550 Short-term lease cost: Corporate office leases 168 56 Ground leases — — Variable lease cost: Corporate office leases 1,130 361 Ground leases 2,575 880 Total lease cost $ 23,331 $ 7,837 The following table illustrates the quantitative disclosures for lessees as of and for the nine months ended September 30, 2019 (amounts in thousands): September 30, 2019 Other information: Cash paid for amounts included in the measurement of lease liabilities: Investing cash flows from finance leases (capitalized) $ 47 Operating cash flows from operating leases: Corporate office leases $ 4,128 Ground leases $ 12,035 ROU assets obtained in exchange for new finance lease liabilities $ 23,201 ROU assets obtained in exchange for new operating lease liabilities: Corporate office leases $ 45,791 Ground leases $ 422,018 Weighted-average remaining lease term – finance leases 19.9 years Weighted-average remaining lease term – operating leases: Corporate office leases 19.2 years Ground leases 56.4 years Weighted-average discount rate – finance leases 3.0 % Weighted-average discount rate – operating leases: Corporate office leases 3.2 % Ground leases 5.0 % The following table summarizes the Company’s undiscounted cash flows for contractual obligations for minimum rent payments/receipts under operating and financing leases for the next five years and thereafter as of September 30, 2019: (Payments)/Receipts Due by Year (in thousands) Remaining 2019 2020 2021 2022 2023 2024 Thereafter Total Finance Leases: Minimum Rent Payments (a) $ (141 ) $ (567 ) $ (578 ) $ (590 ) $ (601 ) $ (614 ) $ (33,850 ) $ (36,941 ) Operating Leases: Minimum Rent Payments (a) $ (4,175 ) $ (16,840 ) $ (16,862 ) $ (16,602 ) $ (16,687 ) $ (17,014 ) $ (977,238 ) $ (1,065,418 ) Minimum Rent Receipts (b) $ 16,194 $ 63,409 $ 60,140 $ 56,624 $ 49,150 $ 41,950 $ 149,208 $ 436,675 (a) Minimum basic rent due for corporate office leases and base rent due on ground leases where the Company is the lessee. (b) Minimum basic rent receipts due for various retail space where the Company is the lessor. Excludes residential leases due to their short-term nature. The following table provides a reconciliation of lease liabilities from our undiscounted cash flows for minimum rent payments as of September 30, 2019 (amounts in thousands): 2019 Total minimum rent payments $ 1,102,359 Less: Lease discount 769,047 Lease liabilities $ 333,312 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 9 . Debt EQR Mortgage Notes Payable As of September 30, 2019, the Company had outstanding mortgage debt of approximately $2.0 billion. During the nine months ended September 30, 2019, the Company: • Obtained $288.1 million in 3.94% fixed rate mortgage debt held in a Fannie Mae loan pool maturing on March 1, 2029; • Obtained $7.6 million in variable rate construction mortgage debt that is non-recourse to the Company maturing on June 25, 2022 (total commitment of $67.6 million); • Repaid $132.6 million of tax-exempt variable rate mortgage bonds maturing in 2032 through 2036; • Repaid $ 5.9 2032 2035 • Repaid $500.0 million of 5.78% mortgage debt held in a Freddie Mac loan pool at par prior to the July 1, 2020 maturity date; • Repaid $84.5 million of 4.79% mortgage debt maturing in 2053 and incurred a prepayment penalty of $3.4 million; and • Repaid $4.9 million of scheduled principal repayments on various mortgage debt. The Company recorded $2.3 million of write-offs of unamortized deferred financing costs during the nine months ended September 30, 2019 as additional interest expense related to debt extinguishment of mortgages. The Company also recorded $6.2 million of write-offs of net unamortized discounts during the nine months ended September 30, 2019 as additional interest expense related to debt extinguishment of mortgages. As of September 30, 2019, the Company had $301.7 million of secured debt (primarily tax-exempt bonds) subject to third party credit enhancement. As Notes As of September 30, 2019, the Company had outstanding unsecured notes of approximately $6.7 billion. During the nine months ended September 30, 2019, the Company: • Issued $600.0 million of ten-year 3.00% unsecured notes, receiving net proceeds of approximately $597.5 million before underwriting fees, hedge termination costs and other expenses; • Issued $600.0 million of ten-year 2.50% unsecured notes, receiving net proceeds of approximately $597.0 million before underwriting fees and other expenses; and • Repaid $450.0 million of 2.375% unsecured notes at maturity. The fair value interest rate swaps matured in conjunction with the maturity of the notes that converted the fixed rate of 2.375% to a floating interest rate of 90-Day LIBOR plus 0.61%. As September 30, 2019 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 nine months ended September 30, 2019. Line of Credit and Commercial Paper The Company has 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 ). Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating. The Company has an T he Company limits its utilization of the revolving credit facility in order to maintain liquidity to support its $500.0 million commercial paper program along with certain other obligations. The following table presents the availability on the Company’s unsecured revolving credit facility as of September 30, 2019 (amounts in thousands): September 30, 2019 Unsecured revolving credit facility commitment $ 2,000,000 Commercial paper balance outstanding (355,000 ) Unsecured revolving credit facility balance outstanding — Other restricted amounts (100,929 ) Unsecured revolving credit facility availability $ 1,544,071 Other In 2017, the Company executed a letter of credit facility with a third party financial institution which is not backed or collateralized by borrowings on the Company’s unsecured revolving credit facility. As of September 30, 2019, there was $9.0 million in letters of credit outstanding on this facility. |
Derivative and Other Fair Value
Derivative and Other Fair Value Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Derivative and Other Fair Value Instruments | 10 . 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 applied internally by the Company that use as their inputs 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 September 30, 2019 December 31, 2018 Carrying Value Estimated Fair Value (Level 2) Carrying Value Estimated Fair Value (Level 2) Mortgage notes payable, net $ 1,962,471 $ 1,961,120 $ 2,385,470 $ 2,352,502 Unsecured debt, net 7,029,465 7,599,742 6,432,469 6,481,426 Total debt, net $ 8,991,936 $ 9,560,862 $ 8,817,939 $ 8,833,928 The Fair Value Measurements at Reporting Date Using Description Balance Sheet Location 9/30/2019 Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Supplemental Executive Retirement Plan Other Assets $ 146,542 $ 146,542 $ — $ — Liabilities Supplemental Executive Retirement Plan Other Liabilities $ 146,542 $ 146,542 $ — $ — Redeemable Noncontrolling Interests – Operating Partnership/Redeemable Limited Partners Mezzanine $ 494,999 $ — $ 494,999 $ — Fair Value Measurements at Reporting Date Using Description Balance Sheet Location 12/31/2018 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 $ 2,000 $ — $ 2,000 $ — Supplemental Executive Retirement Plan Other Assets 134,088 134,088 — — Total $ 136,088 $ 134,088 $ 2,000 $ — Liabilities Derivatives designated as hedging instruments: Interest Rate Contracts: Fair Value Hedges Other Liabilities $ 2,277 $ — $ 2,277 $ — Forward Starting Swaps Other Liabilities 9,851 — 9,851 — Supplemental Executive Retirement Plan Other Liabilities 134,088 134,088 — — Total $ 146,216 $ 134,088 $ 12,128 $ — Redeemable Noncontrolling Interests – Operating Partnership/Redeemable Limited Partners Mezzanine $ 379,106 $ — $ 379,106 $ — The September 30, 2019 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 $ 2,277 Fixed rate debt Interest expense $ (2,277 ) Total $ 2,277 $ (2,277 ) September 30, 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 $ (1,491 ) Fixed rate debt Interest expense $ 1,491 Total $ (1,491 ) $ 1,491 The Effective Portion September 30, 2019 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 Derivatives designated as hedging instruments: Interest Rate Contracts: Forward Starting Swaps $ (33,765 ) Interest expense $ (14,659 ) Total $ (33,765 ) $ (14,659 ) Effective Portion Ineffective Portion September 30, 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 $ 24,021 Interest expense $ (13,902 ) N/A $ — Total $ 24,021 $ (13,902 ) $ — As September 30, 2019 In June 2019, the Company paid approximately $41.8 million to settle ten forward starting swaps in conjunction with the issuance of $600.0 million of ten-year unsecured public notes. The accrued interest of approximately $0.2 million was recorded as an increase to interest expense. The remaining $41.6 million will be deferred as a component of accumulated other comprehensive income (loss) and will be recognized as an increase to interest expense over the first nine years and eleven months of the notes. In July 2019, six fair value interest rate swaps matured in conjunction with the maturity of the $450.0 million of 2.375% unsecured notes. |
Earnings Per Share and Earnings
Earnings Per Share and Earnings Per Unit | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share And Earnings Per Unit | 1 1 . Earnings Per Share and Earnings Per Equity Residential The Nine Months Ended September 30, Quarter Ended September 30, 2019 2018 2019 2018 Numerator for net income per share – basic: Net income $ 708,402 $ 562,804 $ 277,846 $ 223,846 Allocation to Noncontrolling Interests – Operating Partnership (25,339 ) (20,517 ) (9,910 ) (8,159 ) Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties (2,450 ) (1,939 ) (830 ) (750 ) Preferred distributions (2,318 ) (2,318 ) (773 ) (773 ) Numerator for net income per share – basic $ 678,295 $ 538,030 $ 266,333 $ 214,164 Numerator for net income per share – diluted: Net income $ 708,402 $ 562,804 $ 277,846 $ 223,846 Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties (2,450 ) (1,939 ) (830 ) (750 ) Preferred distributions (2,318 ) (2,318 ) (773 ) (773 ) Numerator for net income per share – diluted $ 703,634 $ 558,547 $ 276,243 $ 222,323 Denominator for net income per share – basic and diluted: Denominator for net income per share – basic 370,227 367,920 370,768 368,028 Effect of dilutive securities: OP Units 12,915 12,871 12,941 12,884 Long-term compensation shares/units 3,035 2,642 3,187 2,972 Denominator for net income per share – diluted 386,177 383,433 386,896 383,884 Net income per share – basic $ 1.83 $ 1.46 $ 0.72 $ 0.58 Net income per share – diluted $ 1.82 $ 1.46 $ 0.71 $ 0.58 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): Nine Months Ended September 30, Quarter Ended September 30, 2019 2018 2019 2018 Numerator for net income per Unit – basic and diluted: Net income $ 708,402 $ 562,804 $ 277,846 $ 223,846 Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties (2,450 ) (1,939 ) (830 ) (750 ) Allocation to Preference Units (2,318 ) (2,318 ) (773 ) (773 ) Numerator for net income per Unit – basic and diluted $ 703,634 $ 558,547 $ 276,243 $ 222,323 Denominator for net income per Unit – basic and diluted: Denominator for net income per Unit – basic 383,142 380,791 383,709 380,912 Effect of dilutive securities: Dilution for Units issuable upon assumed exercise/vesting of the Company’s long-term compensation shares/units 3,035 2,642 3,187 2,972 Denominator for net income per Unit – diluted 386,177 383,433 386,896 383,884 Net income per Unit – basic $ 1.83 $ 1.46 $ 0.72 $ 0.58 Net income per Unit – diluted $ 1.82 $ 1.46 $ 0.71 $ 0.58 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 1 2 . The Company, as an owner of real estate, is subject to various Federal, state and local environmental laws. Compliance by the Company with existing laws has not had a material adverse effect on the Company. However, the Company cannot predict the impact of new or changed laws or regulations on its current properties or on properties that it may acquire in the future. The Company 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 September 30, 2019, the Company has two wholly owned projects and one partially owned project totaling 824 apartment units in various stages of development with remaining commitments to fund of approximately $459.4 million (inclusive of applicable construction mortgage and joint venture partner obligations) and estimated completion dates ranging through September 30, 2021, as well as other completed development projects that are in various stages of lease-up or are stabilized. As of September 30, 2019, the Company has a joint venture agreement with a third party partner for the consolidated development of a multifamily rental property. The development commitment to fund is included in the development funding totals above. The joint venture agreement includes a |
Reportable Segments
Reportable Segments | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segments | 1 3 . 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 geographic same store operating segments located in urban and high-density suburban communities represent its reportable segments (the recently acquired Denver properties owned by the Company are currently included in non-same store). 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 Nine Months Ended September 30, Quarter Ended September 30, 2019 2018 2019 2018 Rental income $ 2,016,796 $ 1,925,128 $ 685,120 $ 652,677 Property and maintenance expense (338,497 ) (322,487 ) (114,966 ) (110,541 ) Real estate taxes and insurance expense (270,434 ) (268,784 ) (87,546 ) (87,388 ) Total operating expenses (608,931 ) (591,271 ) (202,512 ) (197,929 ) Net operating income $ 1,407,865 $ 1,333,857 $ 482,608 $ 454,748 The following tables present NOI for each segment from our rental real estate for the nine months and quarters ended September 30, 2019 and 2018, Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Rental Income Operating Expenses NOI Rental Income Operating Expenses NOI Same store (1) Los Angeles $ 350,841 $ 102,851 $ 247,990 $ 337,047 $ 96,431 $ 240,616 Orange County 78,522 18,583 59,939 75,595 18,434 57,161 San Diego 71,088 18,532 52,556 68,640 17,988 50,652 Subtotal - Southern California 500,451 139,966 360,485 481,282 132,853 348,429 San Francisco 359,867 87,104 272,763 346,485 84,581 261,904 Washington D.C. 330,944 101,969 228,975 323,549 100,575 222,974 New York 340,828 142,047 198,781 332,474 133,001 199,473 Boston 169,576 46,645 122,931 163,292 45,473 117,819 Seattle 154,453 41,517 112,936 150,103 42,084 108,019 Other Markets 1,560 545 1,015 1,453 503 950 Total same store 1,857,679 559,793 1,297,886 1,798,638 539,070 1,259,568 Non-same store/other (2) (3) Non-same store 136,353 43,801 92,552 69,334 25,322 44,012 Other (3) 22,764 5,337 17,427 57,156 26,879 30,277 Total non-same store/other 159,117 49,138 109,979 126,490 52,201 74,289 Totals $ 2,016,796 $ 608,931 $ 1,407,865 $ 1,925,128 $ 591,271 $ 1,333,857 (1) For the nine months ended September 30, 2019 and 2018, same store primarily includes all properties acquired or completed that were stabilized prior to January 1, 2018, less properties subsequently sold, which represented 72,979 apartment (2) For the nine months ended September 30, 2019 and 2018, non-same store primarily includes properties acquired after January 1, 2018, 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 September 30, 2019 Quarter Ended September 30, 2018 Rental Income Operating Expenses NOI Rental Income Operating Expenses NOI Same store (1) Los Angeles $ 122,506 $ 36,666 $ 85,840 $ 118,864 $ 34,683 $ 84,181 Orange County 26,636 6,382 20,254 25,599 6,203 19,396 San Diego 24,064 6,447 17,617 23,215 6,234 16,981 Subtotal - Southern California 173,206 49,495 123,711 167,678 47,120 120,558 San Francisco 127,104 31,438 95,666 122,075 30,420 91,655 Washington D.C. 111,712 34,797 76,915 108,979 34,549 74,430 New York 117,382 48,293 69,089 114,407 45,143 69,264 Boston 59,354 16,243 43,111 56,724 16,124 40,600 Seattle 60,434 16,086 44,348 58,107 16,062 42,045 Other Markets 520 168 352 484 164 320 Total same store 649,712 196,520 453,192 628,454 189,582 438,872 Non-same store/other (2) (3) Non-same store 32,171 9,676 22,495 8,160 2,785 5,375 Other (3) 3,237 (3,684 ) 6,921 16,063 5,562 10,501 Total non-same store/other 35,408 5,992 29,416 24,223 8,347 15,876 Totals $ 685,120 $ 202,512 $ 482,608 $ 652,677 $ 197,929 $ 454,748 (1) For the quarters ended September 30, 2019 and 2018, same store primarily includes all properties acquired or completed that were stabilized prior to July 1, 2018, less properties subsequently sold, which repres ented 75,290 apartment units. (2) For the quarters ended September 30, 2019 and 2018, non-same store primarily includes properties acquired after July 1, 2018, plus any properties in lease-up and not stabilized as of July 1, (3) Other includes development, other corporate operations and operations prior to disposition for properties sold. Nine Months Ended September 30, 2019 Total Assets Capital Expenditures Same store (1) Los Angeles $ 3,002,609 $ 23,301 Orange County 409,559 7,460 San Diego 394,352 3,161 Subtotal - Southern California 3,806,520 33,922 San Francisco 3,267,869 19,422 Washington D.C. 3,600,267 16,517 New York 3,915,125 17,532 Boston 1,479,159 18,191 Seattle 1,304,042 14,162 Other Markets 12,867 165 Total same store 17,385,849 119,911 Non-same store/other (2) (3) Non-same store 3,109,994 7,757 Other (3) 558,213 667 Total non-same store/other 3,668,207 8,424 Totals $ 21,054,056 $ 128,335 (1) Same store primarily includes all properties acquired or completed that were stabilized prior to January 1, 2018, less properties subsequently sold, which represented 72,979 apartment (2) Non-same store primarily includes properties acquired after January 1, 2018, 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 | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 1 4 . Subsequent Subsequent to September 30, 2019, the Company: • Repaid $20.0 million of tax-exempt variable rate mortgage bonds at maturity. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
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 nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. 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, 2018 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, 2018 . |
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 may incur both federal and state income taxes on any taxable income of such entities after consideration of any net operating losses. In December 2017, H.R. 1, informally titled the Tax Cuts and Jobs Act (the “Tax Act”), became law. As of September 30, 2019, the Tax Act did not 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. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“ FASB”) Recently Adopted Accounting Pronouncements In FASB Revenue from Contracts with Customers For the remaining approximately 6% of rental income that is subject to the revenue recognition standard, the Company’s disaggregated revenue streams are disclosed in the table included in the Company’s and the Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2018 and are comparable with the percentage of rental income for the nine months and quarter ended September 30, 2019. 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. Additionally, as part of the revenue recognition standard, the FASB issued amendments related to partial sales of real estate. Adoption of the 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 standards. In • Lessors – Leases are accounted for using an approach that is substantially equivalent to existing guidance for operating, sales-type and financing leases, but aligned with the revenue recognition standard. Lessors are required to allocate lease payments to separate lease and non-lease components of each lease agreement, with the non-lease com ponents evaluated under the revenue recognition standard. • Lessees – Leases are 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 determines 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 (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 are accounted for similar to existing guidance for operating leases. |
Business (Tables)
Business (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 290 76,602 Master-Leased Properties – Consolidated 1 162 Partially Owned Properties – Consolidated 17 3,535 308 80,299 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Summary Of Significant Accounting Policies [Abstract] | |
Schedule of Reclassification's to Initial Right-of-use Assets | The Company calculated the net present value of the lease liabilities on January 1, 2019 and reclassed the following amounts from other assets and other liabilities to record our initial ROU assets (amounts in thousands): January 1, 2019 Balance Sheet Reclass: Initial lease liabilities $ 278,287 Reclassifications: Prepaid ground leases 17,886 Other Assets Ground lease intangibles – below market, net 166,230 Other Assets Ground lease intangibles – above market, net (2,110 ) Other Liabilities Straight-line rent liabilities (1) (26,092 ) Other Liabilities Initial right-of-use assets $ 434,201 (1) Straight-line rent liabilities relate to corporate office leases and certain ground leases. |
Equity, Capital and Other Int_2
Equity, Capital and Other Interests (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Class Of Stock [Line Items] | |
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 nine months ended September 30, 2019 and 2018: 2019 2018 Common Shares Common Shares outstanding at January 1, 369,405,161 368,018,082 Common Shares Issued: Conversion of OP Units 294,400 12,510 Exercise of share options 1,430,048 194,796 Employee Share Purchase Plan (ESPP) 37,263 61,321 Restricted share grants, net 160,460 122,877 Common Shares outstanding at September 30, 371,327,332 368,409,586 Units Units outstanding at January 1, 13,904,035 13,768,438 Restricted unit grants, net 140,055 267,074 Conversion of OP Units to Common Shares (294,400 ) (12,510 ) Units outstanding at September 30, 13,749,690 14,023,002 Total Common Shares and Units outstanding at September 30, 385,077,022 382,432,588 Units Ownership Interest in Operating Partnership 3.6 % 3.7 % |
Changes in Redemption Value of Redeemable Noncontrolling Interests and Limited Partners Interest | The 2019 2018 Balance at January 1, $ 379,106 $ 366,955 Change in market value 114,936 14,361 Change in carrying value 957 (77 ) Balance at September 30, $ 494,999 $ 381,239 |
Issued and Outstanding Preferred Shares and Preference Units | The Amounts in thousands Annual Call Dividend Per September 30, December 31, Date (1) Share (2) 2019 2018 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 September 30, 2019 and December 31, 2018 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] | |
Class Of Stock [Line Items] | |
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 nine months ended September 30, 2019 and 2018: 2019 2018 General and Limited Partner Units General and Limited Partner Units outstanding at January 1, 383,309,196 381,786,520 Issued to General Partner: Exercise of EQR share options 1,430,048 194,796 EQR’s Employee Share Purchase Plan (ESPP) 37,263 61,321 EQR’s restricted share grants, net 160,460 122,877 Issued to Limited Partners: Restricted unit grants, net 140,055 267,074 General and Limited Partner Units outstanding at September 30, 385,077,022 382,432,588 Limited Partner Units Limited Partner Units outstanding at January 1, 13,904,035 13,768,438 Limited Partner restricted unit grants, net 140,055 267,074 Conversion of Limited Partner OP Units to EQR Common Shares (294,400 ) (12,510 ) Limited Partner Units outstanding at September 30, 13,749,690 14,023,002 Limited Partner Units Ownership Interest in Operating Partnership 3.6 % 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 nine months ended September 30, 2019 and 2018 (amounts in thousands): 2019 2018 Balance at January 1, $ 379,106 $ 366,955 Change in market value 114,936 14,361 Change in carrying value 957 (77 ) Balance at September 30, $ 494,999 $ 381,239 |
Issued and Outstanding Preferred Shares and Preference Units | The December 31, 2018 Amounts in thousands Annual Call Dividend Per September 30, December 31, Date (1) Unit (2) 2019 2018 Preference Units: 8.29% Series K Cumulative Redeemable Preference Units; liquidation value $50 per unit; 745,600 units issued and outstanding as of September 30, 2019 and December 31, 2018 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 (Tables)
Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 (amounts in thousands): September 30, 2019 December 31, 2018 Land $ 5,955,121 $ 5,875,803 Depreciable property: Buildings and improvements 18,796,370 18,232,625 Furniture, fixtures and equipment 1,875,121 1,722,231 In-Place lease intangibles 496,764 481,045 Projects under development: Land 23,531 25,429 Construction-in-progress 119,903 83,980 Land held for development: Land 64,660 61,038 Construction-in-progress 26,357 28,871 Investment in real estate 27,357,827 26,511,022 Accumulated depreciation (7,171,876 ) (6,696,281 ) Investment in real estate, net $ 20,185,951 $ 19,814,741 |
Acquired Properties From Unaffiliated Parties | During the nine months ended September 30, 2019, the Company acquired the following from unaffiliated parties (purchase price in thousands): Properties Apartment Units Purchase Price Rental Properties – Consolidated (1) 10 2,728 $ 1,124,580 Land Parcels (three) (2) — — 19,832 Total 10 2,728 $ 1,144,412 (1) Purchase price includes an allocation of approximately $193.4 million to land and $933.3 million to depreciable property (inclusive of capitalized closing costs). (2) Purchase price includes an allocation of approximately $16.7 million to vacant land and $3.8 million to construction-in-progress (inclusive of capitalized closing costs). Land parcels include entry into one long-term ground lease for a land project under development in the Washington D.C. market. See Notes 6 and 8 for additional discussion. |
Disposed Properties to Unaffiliated Parties | During the nine months ended September 30, 2019, the Company disposed of the following to unaffiliated parties (sales price in thousands): Properties Apartment Units Sales Price Rental Properties – Consolidated 9 1,202 $ 706,675 Rental Properties – Unconsolidated (1) 2 945 394,500 Land Parcels (one) — — 1,900 Total 11 2,147 $ 1,103,075 ( 1 ) The Company owned a 20% interest in both unconsolidated rental properties. Sales price listed is the gross sales price. The Company received net sales proceeds of approximately $78.3 million. |
Commitments to Acquire_Dispos_2
Commitments to Acquire/Dispose of Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments To Acquire Dispose Of Real Estate [Abstract] | |
Separate Agreements to Dispose | The Company has entered into separate agreements to dispose of the following (sales price in thousands): Properties Apartment Units Sales Price Rental Properties – Consolidated 1 939 $ 254,000 Land Parcels (three) — — 55,350 Total 1 939 $ 309,350 |
Investments in Partially Owne_2
Investments in Partially Owned Entities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments In Partially Owned Entities [Abstract] | |
Summary of Companys Investment in Unconsolidated Entities | The following table and information summarizes the Company’s investments in unconsolidated entities, which are accounted for under the equity method of accounting as the requirements for consolidation are not met, as of September 30, 2019 and December 31, 2018 (amounts in thousands except for ownership percentage): September 30, 2019 December 31, 2018 Ownership Percentage Investments in Unconsolidated Entities: Wisconsin Place Developer (VIE) (1) $ 40,896 $ 42,365 33.3% Operating Properties (Non-VIE) (2) — 10,494 20.0% Real Estate Technology/Other 11,578 5,490 Varies Investments in Unconsolidated Entities $ 52,474 $ 58,349 (1) Represents an unconsolidated interest in an entity that owns the land underlying one of the consolidated joint venture properties noted above and owns and operates a related parking facility. 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. (2) Includes two joint ventures under separate agreements with the same partner totaling 945 apartment units as of December 31, 2018. During the nine months ended September 30, 2019, the Company and its joint venture partner sold both properties under separate agreements to unaffiliated parties. See Note 4 for additional discussion. |
Restricted Deposits (Tables)
Restricted Deposits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Deposits Restricted [Abstract] | |
Restricted Deposits | The following table presents the Company’s restricted deposits as of September 30, 2019 and December 31, 2018 (amounts in thousands): September 30, 2019 December 31, 2018 Mortgage escrow deposits: Real estate taxes and insurance $ — $ 876 Replacement reserves 8,523 8,641 Mortgage principal reserves/sinking funds 8,758 9,754 Other — 852 Mortgage escrow deposits 17,281 20,123 Restricted cash: Earnest money on pending acquisitions — 5,000 Restricted deposits on real estate investments 665 540 Resident security and utility deposits 36,888 35,659 Other 985 7,549 Restricted cash 38,538 48,748 Restricted deposits $ 55,819 $ 68,871 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Summary of Lease Income Types Relating to Lease Payments | The following table presents the lease income types relating to lease payments for residential and retail leases for the nine months and quarter ended September 30, 2019 (amounts in thousands): Nine Months Ended September 30, 2019 Quarter Ended September 30, 2019 Lease Income Type Residential Leases Retail Leases Total Residential Leases Retail Leases Total Residential and retail rent $ 1,801,749 $ 54,616 $ 1,856,365 $ 611,020 $ 18,453 $ 629,473 Parking rent 27,874 259 28,133 9,405 100 9,505 Storage rent 2,796 51 2,847 940 20 960 Pet rent 8,714 — 8,714 2,916 — 2,916 Total lease revenue (1) $ 1,841,133 $ 54,926 $ 1,896,059 $ 624,281 $ 18,573 $ 642,854 (1) Excludes other rental income of $120.7 million for the nine months ended September 30, 2019 and $42.2 million for the quarter ended September 30, 2019, which is accounted for under the revenue recognition standard. |
Summary of Right-of-Use Assets and Related Lease Liabilities | The following table presents the Company’s ROU assets and related lease liabilities as of September 30, 2019 (amounts in thousands): 2019 Right-of-use assets: Corporate office leases $ 43,739 Ground leases (finance) 23,201 Ground leases (operating) 414,104 Right-of-use assets $ 481,044 Lease liabilities: Corporate office leases $ 45,237 Ground leases (finance) 23,210 Ground leases (operating) 264,865 Lease liabilities $ 333,312 |
Summary of Quantitative Disclosures for Lessees | The following table illustrates the quantitative disclosures for lessees as of and for the nine months and quarter ended September 30, 2019 (amounts in thousands): Nine Months Ended September 30, 2019 Quarter Ended September 30, 2019 Lease cost: Finance lease cost: Amortization of right-of-use assets $ — $ — Interest on lease liabilities (capitalized) 55 55 Operating lease cost: Corporate office leases 2,753 935 Ground leases 16,650 5,550 Short-term lease cost: Corporate office leases 168 56 Ground leases — — Variable lease cost: Corporate office leases 1,130 361 Ground leases 2,575 880 Total lease cost $ 23,331 $ 7,837 |
Summary of Quantitative Disclosures for Lessees Operating Lease Liabilities | The following table illustrates the quantitative disclosures for lessees as of and for the nine months ended September 30, 2019 (amounts in thousands): September 30, 2019 Other information: Cash paid for amounts included in the measurement of lease liabilities: Investing cash flows from finance leases (capitalized) $ 47 Operating cash flows from operating leases: Corporate office leases $ 4,128 Ground leases $ 12,035 ROU assets obtained in exchange for new finance lease liabilities $ 23,201 ROU assets obtained in exchange for new operating lease liabilities: Corporate office leases $ 45,791 Ground leases $ 422,018 Weighted-average remaining lease term – finance leases 19.9 years Weighted-average remaining lease term – operating leases: Corporate office leases 19.2 years Ground leases 56.4 years Weighted-average discount rate – finance leases 3.0 % Weighted-average discount rate – operating leases: Corporate office leases 3.2 % Ground leases 5.0 % |
Summary of Undiscounted Cash Flows for Contractual Obligations for Minimum Rent Payments/Receipts | The following table summarizes the Company’s undiscounted cash flows for contractual obligations for minimum rent payments/receipts under operating and financing leases for the next five years and thereafter as of September 30, 2019: (Payments)/Receipts Due by Year (in thousands) Remaining 2019 2020 2021 2022 2023 2024 Thereafter Total Finance Leases: Minimum Rent Payments (a) $ (141 ) $ (567 ) $ (578 ) $ (590 ) $ (601 ) $ (614 ) $ (33,850 ) $ (36,941 ) Operating Leases: Minimum Rent Payments (a) $ (4,175 ) $ (16,840 ) $ (16,862 ) $ (16,602 ) $ (16,687 ) $ (17,014 ) $ (977,238 ) $ (1,065,418 ) Minimum Rent Receipts (b) $ 16,194 $ 63,409 $ 60,140 $ 56,624 $ 49,150 $ 41,950 $ 149,208 $ 436,675 (a) Minimum basic rent due for corporate office leases and base rent due on ground leases where the Company is the lessee. (b) Minimum basic rent receipts due for various retail space where the Company is the lessor. Excludes residential leases due to their short-term nature. |
Summary of Reconciliation of Lease Liabilities | The following table provides a reconciliation of lease liabilities from our undiscounted cash flows for minimum rent payments as of September 30, 2019 (amounts in thousands): 2019 Total minimum rent payments $ 1,102,359 Less: Lease discount 769,047 Lease liabilities $ 333,312 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Unsecured Revolving Credit Facility | The following table presents the availability on the Company’s unsecured revolving credit facility as of September 30, 2019 (amounts in thousands): September 30, 2019 Unsecured revolving credit facility commitment $ 2,000,000 Commercial paper balance outstanding (355,000 ) Unsecured revolving credit facility balance outstanding — Other restricted amounts (100,929 ) Unsecured revolving credit facility availability $ 1,544,071 |
Derivative and Other Fair Val_2
Derivative and Other Fair Value Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Carrying and Fair Values of Financial Instruments | The September 30, 2019 December 31, 2018 Carrying Value Estimated Fair Value (Level 2) Carrying Value Estimated Fair Value (Level 2) Mortgage notes payable, net $ 1,962,471 $ 1,961,120 $ 2,385,470 $ 2,352,502 Unsecured debt, net 7,029,465 7,599,742 6,432,469 6,481,426 Total debt, net $ 8,991,936 $ 9,560,862 $ 8,817,939 $ 8,833,928 |
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 9/30/2019 Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Supplemental Executive Retirement Plan Other Assets $ 146,542 $ 146,542 $ — $ — Liabilities Supplemental Executive Retirement Plan Other Liabilities $ 146,542 $ 146,542 $ — $ — Redeemable Noncontrolling Interests – Operating Partnership/Redeemable Limited Partners Mezzanine $ 494,999 $ — $ 494,999 $ — Fair Value Measurements at Reporting Date Using Description Balance Sheet Location 12/31/2018 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 $ 2,000 $ — $ 2,000 $ — Supplemental Executive Retirement Plan Other Assets 134,088 134,088 — — Total $ 136,088 $ 134,088 $ 2,000 $ — Liabilities Derivatives designated as hedging instruments: Interest Rate Contracts: Fair Value Hedges Other Liabilities $ 2,277 $ — $ 2,277 $ — Forward Starting Swaps Other Liabilities 9,851 — 9,851 — Supplemental Executive Retirement Plan Other Liabilities 134,088 134,088 — — Total $ 146,216 $ 134,088 $ 12,128 $ — Redeemable Noncontrolling Interests – Operating Partnership/Redeemable Limited Partners Mezzanine $ 379,106 $ — $ 379,106 $ — |
Summary of Effect of Fair Value Hedges on the Accompanying Consolidated Statements of Operations and Comprehensive Income | The September 30, 2019 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 $ 2,277 Fixed rate debt Interest expense $ (2,277 ) Total $ 2,277 $ (2,277 ) September 30, 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 $ (1,491 ) Fixed rate debt Interest expense $ 1,491 Total $ (1,491 ) $ 1,491 |
Summary of Effect of Cash Flow Hedges on the Accompanying Consolidated Statements of Operations and Comprehensive Income | The Effective Portion September 30, 2019 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 Derivatives designated as hedging instruments: Interest Rate Contracts: Forward Starting Swaps $ (33,765 ) Interest expense $ (14,659 ) Total $ (33,765 ) $ (14,659 ) Effective Portion Ineffective Portion September 30, 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 $ 24,021 Interest expense $ (13,902 ) N/A $ — Total $ 24,021 $ (13,902 ) $ — |
Earnings Per Share and Earnin_2
Earnings Per Share and Earnings Per Unit (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share and Earnings Per Unit | The Nine Months Ended September 30, Quarter Ended September 30, 2019 2018 2019 2018 Numerator for net income per share – basic: Net income $ 708,402 $ 562,804 $ 277,846 $ 223,846 Allocation to Noncontrolling Interests – Operating Partnership (25,339 ) (20,517 ) (9,910 ) (8,159 ) Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties (2,450 ) (1,939 ) (830 ) (750 ) Preferred distributions (2,318 ) (2,318 ) (773 ) (773 ) Numerator for net income per share – basic $ 678,295 $ 538,030 $ 266,333 $ 214,164 Numerator for net income per share – diluted: Net income $ 708,402 $ 562,804 $ 277,846 $ 223,846 Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties (2,450 ) (1,939 ) (830 ) (750 ) Preferred distributions (2,318 ) (2,318 ) (773 ) (773 ) Numerator for net income per share – diluted $ 703,634 $ 558,547 $ 276,243 $ 222,323 Denominator for net income per share – basic and diluted: Denominator for net income per share – basic 370,227 367,920 370,768 368,028 Effect of dilutive securities: OP Units 12,915 12,871 12,941 12,884 Long-term compensation shares/units 3,035 2,642 3,187 2,972 Denominator for net income per share – diluted 386,177 383,433 386,896 383,884 Net income per share – basic $ 1.83 $ 1.46 $ 0.72 $ 0.58 Net income per share – diluted $ 1.82 $ 1.46 $ 0.71 $ 0.58 |
ERPOP [Member] | |
Schedule of Calculation of Numerator and Denominator in Earnings 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): Nine Months Ended September 30, Quarter Ended September 30, 2019 2018 2019 2018 Numerator for net income per Unit – basic and diluted: Net income $ 708,402 $ 562,804 $ 277,846 $ 223,846 Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties (2,450 ) (1,939 ) (830 ) (750 ) Allocation to Preference Units (2,318 ) (2,318 ) (773 ) (773 ) Numerator for net income per Unit – basic and diluted $ 703,634 $ 558,547 $ 276,243 $ 222,323 Denominator for net income per Unit – basic and diluted: Denominator for net income per Unit – basic 383,142 380,791 383,709 380,912 Effect of dilutive securities: Dilution for Units issuable upon assumed exercise/vesting of the Company’s long-term compensation shares/units 3,035 2,642 3,187 2,972 Denominator for net income per Unit – diluted 386,177 383,433 386,896 383,884 Net income per Unit – basic $ 1.83 $ 1.46 $ 0.72 $ 0.58 Net income per Unit – diluted $ 1.82 $ 1.46 $ 0.71 $ 0.58 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Reconciliation of NOI from Rental Real Estate Specific to Continuing Operations | The Nine Months Ended September 30, Quarter Ended September 30, 2019 2018 2019 2018 Rental income $ 2,016,796 $ 1,925,128 $ 685,120 $ 652,677 Property and maintenance expense (338,497 ) (322,487 ) (114,966 ) (110,541 ) Real estate taxes and insurance expense (270,434 ) (268,784 ) (87,546 ) (87,388 ) Total operating expenses (608,931 ) (591,271 ) (202,512 ) (197,929 ) Net operating income $ 1,407,865 $ 1,333,857 $ 482,608 $ 454,748 |
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 nine months and quarters ended September 30, 2019 and 2018, Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Rental Income Operating Expenses NOI Rental Income Operating Expenses NOI Same store (1) Los Angeles $ 350,841 $ 102,851 $ 247,990 $ 337,047 $ 96,431 $ 240,616 Orange County 78,522 18,583 59,939 75,595 18,434 57,161 San Diego 71,088 18,532 52,556 68,640 17,988 50,652 Subtotal - Southern California 500,451 139,966 360,485 481,282 132,853 348,429 San Francisco 359,867 87,104 272,763 346,485 84,581 261,904 Washington D.C. 330,944 101,969 228,975 323,549 100,575 222,974 New York 340,828 142,047 198,781 332,474 133,001 199,473 Boston 169,576 46,645 122,931 163,292 45,473 117,819 Seattle 154,453 41,517 112,936 150,103 42,084 108,019 Other Markets 1,560 545 1,015 1,453 503 950 Total same store 1,857,679 559,793 1,297,886 1,798,638 539,070 1,259,568 Non-same store/other (2) (3) Non-same store 136,353 43,801 92,552 69,334 25,322 44,012 Other (3) 22,764 5,337 17,427 57,156 26,879 30,277 Total non-same store/other 159,117 49,138 109,979 126,490 52,201 74,289 Totals $ 2,016,796 $ 608,931 $ 1,407,865 $ 1,925,128 $ 591,271 $ 1,333,857 (1) For the nine months ended September 30, 2019 and 2018, same store primarily includes all properties acquired or completed that were stabilized prior to January 1, 2018, less properties subsequently sold, which represented 72,979 apartment (2) For the nine months ended September 30, 2019 and 2018, non-same store primarily includes properties acquired after January 1, 2018, 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 September 30, 2019 Quarter Ended September 30, 2018 Rental Income Operating Expenses NOI Rental Income Operating Expenses NOI Same store (1) Los Angeles $ 122,506 $ 36,666 $ 85,840 $ 118,864 $ 34,683 $ 84,181 Orange County 26,636 6,382 20,254 25,599 6,203 19,396 San Diego 24,064 6,447 17,617 23,215 6,234 16,981 Subtotal - Southern California 173,206 49,495 123,711 167,678 47,120 120,558 San Francisco 127,104 31,438 95,666 122,075 30,420 91,655 Washington D.C. 111,712 34,797 76,915 108,979 34,549 74,430 New York 117,382 48,293 69,089 114,407 45,143 69,264 Boston 59,354 16,243 43,111 56,724 16,124 40,600 Seattle 60,434 16,086 44,348 58,107 16,062 42,045 Other Markets 520 168 352 484 164 320 Total same store 649,712 196,520 453,192 628,454 189,582 438,872 Non-same store/other (2) (3) Non-same store 32,171 9,676 22,495 8,160 2,785 5,375 Other (3) 3,237 (3,684 ) 6,921 16,063 5,562 10,501 Total non-same store/other 35,408 5,992 29,416 24,223 8,347 15,876 Totals $ 685,120 $ 202,512 $ 482,608 $ 652,677 $ 197,929 $ 454,748 (1) For the quarters ended September 30, 2019 and 2018, same store primarily includes all properties acquired or completed that were stabilized prior to July 1, 2018, less properties subsequently sold, which repres ented 75,290 apartment units. (2) For the quarters ended September 30, 2019 and 2018, non-same store primarily includes properties acquired after July 1, 2018, plus any properties in lease-up and not stabilized as of July 1, (3) Other includes development, other corporate operations and operations prior to disposition for properties sold. Nine Months Ended September 30, 2019 Total Assets Capital Expenditures Same store (1) Los Angeles $ 3,002,609 $ 23,301 Orange County 409,559 7,460 San Diego 394,352 3,161 Subtotal - Southern California 3,806,520 33,922 San Francisco 3,267,869 19,422 Washington D.C. 3,600,267 16,517 New York 3,915,125 17,532 Boston 1,479,159 18,191 Seattle 1,304,042 14,162 Other Markets 12,867 165 Total same store 17,385,849 119,911 Non-same store/other (2) (3) Non-same store 3,109,994 7,757 Other (3) 558,213 667 Total non-same store/other 3,668,207 8,424 Totals $ 21,054,056 $ 128,335 (1) Same store primarily includes all properties acquired or completed that were stabilized prior to January 1, 2018, less properties subsequently sold, which represented 72,979 apartment (2) Non-same store primarily includes properties acquired after January 1, 2018, 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) | Sep. 30, 2019StatePropertyApartmentUnit |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Number of states in which entity operates | State | 10 |
Properties | Property | 308 |
Apartment units | ApartmentUnit | 80,299 |
ERPOP [Member] | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Noncontrolling interest, ownership percentage by parent | 96.40% |
Business - Ownership Breakdown
Business - Ownership Breakdown (Details) | Sep. 30, 2019PropertyApartmentUnit |
Property/Unit schedule | |
Properties | Property | 308 |
Apartment Units | ApartmentUnit | 80,299 |
Wholly Owned Properties | |
Property/Unit schedule | |
Properties | Property | 290 |
Apartment Units | ApartmentUnit | 76,602 |
Master-Leased Properties - Consolidated | |
Property/Unit schedule | |
Properties | Property | 1 |
Apartment Units | ApartmentUnit | 162 |
Partially Owned Properties - Consolidated | |
Property/Unit schedule | |
Properties | Property | 17 |
Apartment Units | ApartmentUnit | 3,535 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | |
Provision for income tax | $ 265,000 | $ 280,000 | $ 749,000 | $ 767,000 | |
Percentage of rental income excluded from accounting standard adoption | 94.00% | ||||
Percentage of total revenue subject to revenue recognition standard | 6.00% | ||||
Right-of-use assets | 481,044,000 | $ 481,044,000 | $ 434,201,000 | ||
Lease liabilities | $ 333,312,000 | 333,312,000 | $ 278,287,000 | ||
Federal [Member] | |||||
Provision for income tax | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Computation of Initial Right-of-use Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Line Items] | ||
Lease liabilities | $ 333,312 | $ 278,287 |
Reclassifications: | ||
Right-of-use assets | $ 481,044 | 434,201 |
Other Assets [Member] | ||
Reclassifications: | ||
Prepaid ground leases | 17,886 | |
Ground lease intangibles – below market, net | 166,230 | |
Other Liabilities [Member] | ||
Reclassifications: | ||
Ground lease intangibles – above market, net | (2,110) | |
Straight line rent liabilities | $ (26,092) |
Equity, Capital and Other Int_3
Equity, Capital and Other Interests - Changes in Issued and Outstanding Common Shares and Units (Details) - shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Equity Capital And Other Interests [Abstract] | ||
Common Stock, Shares, Outstanding | 369,405,161 | 368,018,082 |
Common Shares Issued: | ||
Conversion of OP Units | 294,400 | 12,510 |
Exercise of share options | 1,430,048 | 194,796 |
Employee Share Purchase Plan (ESPP) | 37,263 | 61,321 |
Restricted share grants, net | 160,460 | 122,877 |
Common Stock, Shares, Outstanding | 371,327,332 | 368,409,586 |
Units | ||
Total Units Outstanding | 13,904,035 | 13,768,438 |
Restricted unit grants, net | 140,055 | 267,074 |
Conversion of OP Units to Common Shares | (294,400) | (12,510) |
Total Units Outstanding | 13,749,690 | 14,023,002 |
Common Shares And Units Outstanding | 385,077,022 | 382,432,588 |
Units Ownership Interest in Operating Partnership | 3.60% | 3.70% |
Equity, Capital and Other Int_4
Equity, Capital and Other Interests - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Class Of Stock [Line Items] | ||||
Redeemable noncontrolling interests - operating partnership | $ 494,999 | $ 379,106 | $ 381,239 | $ 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 | $ 494,999 | $ 379,106 | $ 381,239 | $ 366,955 |
Equity, Capital and Other Int_5
Equity, Capital and Other Interests - Changes in Redemption Value of Redeemable Noncontrolling Interests - Operating Partnership (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Equity Capital And Other Interests [Abstract] | ||
Redeemable Noncontrolling Interests - Operating Partnership | $ 379,106 | $ 366,955 |
Change in market value of Redeemable Noncontrolling Interests – Operating Partnership | 114,936 | 14,361 |
Change in carrying value of Redeemable Noncontrolling Interests - Operating Partnership | 957 | (77) |
Redeemable Noncontrolling Interests - Operating Partnership | $ 494,999 | $ 381,239 |
Equity, Capital and Other Int_6
Equity, Capital and Other Interests - Issued and Outstanding Preferred Shares and Preference Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
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 September 30, 2019 and December 31, 2018 | $ 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 September 30, 2019 and December 31, 2018 | $ 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 September 30, 2019 and December 31, 2018 | $ 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 September 30, 2019 and December 31, 2018 | $ 37,280 | $ 37,280 |
Equity, Capital and Other Int_7
Equity, Capital and Other Interests - Issued and Outstanding Preferred Shares and Preference Units (Parenthetical) (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
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 Int_8
Equity, Capital and Other Interests - Changes in Operating Partnership's Issued and Outstanding Units (Details) - shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
General and Limited Partner Units | ||
Exercise of share options | 1,430,048 | 194,796 |
Employee Share Purchase Plan (ESPP) | 37,263 | 61,321 |
Restricted share grants, net | 160,460 | 122,877 |
Restricted unit grants, net | 140,055 | 267,074 |
Common Shares And Units Outstanding | 385,077,022 | 382,432,588 |
LIMITED PARTNERS | ||
Total Units Outstanding | 13,904,035 | 13,768,438 |
Restricted unit grants, net | 140,055 | 267,074 |
Conversion of Limited Partner OP Units to EQR Common Shares | (294,400) | (12,510) |
Total Units Outstanding | 13,749,690 | 14,023,002 |
Units Ownership Interest in Operating Partnership | 3.60% | 3.70% |
ERPOP [Member] | ||
General and Limited Partner Units | ||
Common Shares And Units Outstanding | 383,309,196 | 381,786,520 |
Exercise of share options | 1,430,048 | 194,796 |
Employee Share Purchase Plan (ESPP) | 37,263 | 61,321 |
Restricted share grants, net | 160,460 | 122,877 |
Restricted unit grants, net | 140,055 | 267,074 |
Common Shares And Units Outstanding | 385,077,022 | 382,432,588 |
LIMITED PARTNERS | ||
Total Units Outstanding | 13,904,035 | 13,768,438 |
Restricted unit grants, net | 140,055 | 267,074 |
Conversion of Limited Partner OP Units to EQR Common Shares | (294,400) | (12,510) |
Total Units Outstanding | 13,749,690 | 14,023,002 |
Units Ownership Interest in Operating Partnership | 3.60% | 3.70% |
Equity, Capital and Other Int_9
Equity, Capital and Other Interests - Changes in Redemption Value of Redeemable Limited Partners Interest (Details) - ERPOP [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Redeemable Limited Partners | $ 379,106 | $ 366,955 |
Limited Partners Change In Redemption Value | 114,936 | 14,361 |
Limited Partners Change In Carrying Value | 957 | (77) |
Redeemable Limited Partners | $ 494,999 | $ 381,239 |
Equity, Capital and Other In_10
Equity, Capital and Other Interests - Other - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2019shares | |
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 open market repurchased and retired during period, shares | 0 |
Stock repurchase program, remaining number of shares authorized to be repurchased | 13,000,000 |
Real Estate - Summary of Carryi
Real Estate - Summary of Carrying Amounts of Investment in Real Estate (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Land | $ 5,955,121 | $ 5,875,803 |
Depreciable property: | ||
Buildings and improvements | 18,796,370 | 18,232,625 |
Furniture, fixtures and equipment | 1,875,121 | 1,722,231 |
In-Place lease intangibles | 496,764 | 481,045 |
Projects under development: | ||
Construction-in-progress | 143,434 | 109,409 |
Land held for development: | ||
Land | 91,017 | 89,909 |
Construction-in-progress | 143,434 | 109,409 |
Investment in real estate | 27,357,827 | 26,511,022 |
Accumulated depreciation | (7,171,876) | (6,696,281) |
Investment in real estate, net | 20,185,951 | 19,814,741 |
Projects under development [Member] | ||
Projects under development: | ||
Land | 23,531 | 25,429 |
Construction-in-progress | 119,903 | 83,980 |
Land held for development: | ||
Construction-in-progress | 119,903 | 83,980 |
Land held for development [Member] | ||
Projects under development: | ||
Construction-in-progress | 26,357 | 28,871 |
Land held for development: | ||
Land | 64,660 | 61,038 |
Construction-in-progress | $ 26,357 | $ 28,871 |
Real Estate - Acquired Properti
Real Estate - Acquired Properties From Unaffiliated Parties (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)PropertyApartmentUnit | |
Properties acquired | Property | 10 |
Property Units acquired | ApartmentUnit | 2,728 |
Purchase Price | $ 1,144,412 |
Rental Properties - Consolidated [Member] | |
Properties acquired | Property | 10 |
Property Units acquired | ApartmentUnit | 2,728 |
Purchase Price | $ 1,124,580 |
Land Parcels [Member] | |
Purchase Price | $ 19,832 |
Real Estate - Acquired Proper_2
Real Estate - Acquired Properties From Unaffiliated Parties (Parenthetical) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Purchase Price | $ 1,144,412 |
Land Parcels [Member] | |
Purchase Price | 19,832 |
Land [Member] | |
Purchase Price | 193,400 |
Depreciable Property [Member] | |
Purchase Price | 933,300 |
Vacant Land [Member] | |
Purchase Price | 16,700 |
Construction in Progress [Member] | |
Purchase Price | $ 3,800 |
Real Estate - Disposed Properti
Real Estate - Disposed Properties to Unaffiliated Parties (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)PropertyApartmentUnit | |
Properties disposed | Property | 11 |
Property Units disposed | ApartmentUnit | 2,147 |
Sales Price | $ 1,103,075 |
Rental Properties - Consolidated [Member] | |
Properties disposed | Property | 9 |
Property Units disposed | ApartmentUnit | 1,202 |
Sales Price | $ 706,675 |
Rental Properties - Unconsolidated [Member] | |
Properties disposed | Property | 2 |
Property Units disposed | ApartmentUnit | 945 |
Sales Price | $ 394,500 |
Land Parcels [Member] | |
Sales Price | $ 1,900 |
Real Estate - Disposed Proper_2
Real Estate - Disposed Properties to Unaffiliated Parties (Parenthetical) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Net sales proceeds of unconsolidated rental properties | $ 692,649 | $ 691,526 |
Rental Properties - Unconsolidated [Member] | ||
Ownership percentage | 20.00% | |
Net sales proceeds of unconsolidated rental properties | $ 78,300 |
Real Estate - Additional Inform
Real Estate - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Real Estate [Abstract] | ||||
Net gain on sales of real estate properties | $ 130,565 | $ 114,672 | $ 269,400 | $ 256,834 |
Net gain on sales of unconsolidated entities | 69,500 | |||
Net gain on sales of land parcels | $ 1,899 | $ 2,077 | $ 995 |
Commitments to Acquire_Dispos_3
Commitments to Acquire/Dispose of Real Estate - Separate Agreements to Dispose (Details) $ in Thousands | Sep. 30, 2019USD ($)PropertyApartmentUnit |
Property/Unit schedule | |
Properties | Property | 1 |
Apartment Units | ApartmentUnit | 939 |
Sales Price | $ 309,350 |
Rental Properties Disposed [Member] | Consolidated [Member] | |
Property/Unit schedule | |
Properties | Property | 1 |
Apartment Units | ApartmentUnit | 939 |
Sales Price | $ 254,000 |
Land [Member] | |
Property/Unit schedule | |
Sales Price | $ 55,350 |
Investments in Partially Owne_3
Investments in Partially Owned Entities - Consolidated Variable Interest Entities ("VIEs") - Additional Information (Details) $ in Thousands | Sep. 30, 2019USD ($)PropertyApartmentUnit | Dec. 31, 2018USD ($) |
Variable Interest Entity [Line Items] | ||
Properties | Property | 308 | |
Apartment units | ApartmentUnit | 80,299 | |
Total assets | $ 21,054,056 | $ 20,394,209 |
Total liabilities | $ 10,152,058 | 9,615,454 |
Consolidated VIE [Member] | ||
Variable Interest Entity [Line Items] | ||
Properties | Property | 17 | |
Apartment units | ApartmentUnit | 3,535 | |
Total assets | $ 711,500 | 713,600 |
Total liabilities | $ 325,500 | $ 313,900 |
Consolidated VIE [Member] | Consolidated Joint Venture [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership Percentage | 90.00% | |
Consolidated VIE [Member] | General Partner and Developer [Member] | Consolidated Joint Venture [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership Percentage | 10.00% |
Investments in Partially Owne_4
Investments in Partially Owned Entities - Summary of Companys Investment in Unconsolidated Entities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated Entities | $ 52,474 | $ 58,349 |
Operating Property [Member] | Unconsolidated Non-VIE [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated Entities | 10,494 | |
Ownership Percentage | 20.00% | |
Real Estate Technology/Other [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated Entities | $ 11,578 | 5,490 |
Consolidated VIE [Member] | Wisconsin Place Developer [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated Entities | $ 40,896 | $ 42,365 |
Ownership Percentage | 33.30% |
Investments in Partially Owne_5
Investments in Partially Owned Entities - Summary of Companys Investment in Unconsolidated Entities (Parenthetical) (Details) | 12 Months Ended | |
Dec. 31, 2018ApartmentUnitJointVenture | Sep. 30, 2019ApartmentUnit | |
Variable Interest Entity [Line Items] | ||
Apartment units | 80,299 | |
Operating Property [Member] | Unconsolidated Non-VIE [Member] | ||
Variable Interest Entity [Line Items] | ||
Apartment units | 945 | |
Number of joint ventures under agreements | JointVenture | 2 |
Restricted Deposits - Restricte
Restricted Deposits - Restricted Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Mortgage escrow deposits: | |||
Real estate taxes and insurance | $ 876 | ||
Replacement reserves | $ 8,523 | 8,641 | |
Mortgage principal reserves/sinking funds | 8,758 | 9,754 | |
Other | 852 | ||
Mortgage escrow deposits | 17,281 | 20,123 | |
Restricted cash: | |||
Earnest money on pending acquisitions | 5,000 | ||
Restricted deposits on real estate investments | 665 | 540 | |
Resident security and utility deposits | 36,888 | 35,659 | |
Other | 985 | 7,549 | |
Restricted cash | 38,538 | 48,748 | |
Restricted deposits | $ 55,819 | $ 68,871 | $ 55,755 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019USD ($)PropertyCorporateOfficeLease | Sep. 30, 2019USD ($)PropertyCorporateOfficeLease | Jan. 01, 2019USD ($) | |
Operating Leased Assets [Line Items] | |||
Lease liabilities | $ 333,312 | $ 333,312 | $ 278,287 |
Right-of-use assets | $ 481,044 | $ 481,044 | $ 434,201 |
Corporate Office Leases [Member] | |||
Operating Leased Assets [Line Items] | |||
Number of operating leases | CorporateOfficeLease | 9 | ||
Number of office lease modified | CorporateOfficeLease | 2 | ||
Lease liabilities | $ 45,237 | $ 45,237 | |
Right-of-use assets | $ 43,739 | $ 43,739 | |
Lease expiration date | Nov. 30, 2032 | ||
Number of option to extend | CorporateOfficeLease | 2 | 2 | |
Lease renewal term | 5 years | 5 years | |
Amount incurred for leased office space | $ 700 | $ 2,000 | |
Ground Leases [Member] | |||
Operating Leased Assets [Line Items] | |||
Unsecured borrowing rates for actual pricing period used for calculating discount rate | 30 years | ||
Lease liabilities | 264,865 | $ 264,865 | |
Right-of-use assets | $ 414,104 | $ 414,104 | |
Number of operating properties | Property | 14 | 14 | |
Finance lease, liability | $ 23,210 | $ 23,210 | |
Finance lease,ROU asset | 23,201 | 23,201 | |
Modified Corporate Office leases [Member] | |||
Operating Leased Assets [Line Items] | |||
Lease liabilities | 29,100 | 29,100 | |
Right-of-use assets | 29,100 | 29,100 | |
Ground Lease Under Development [Member] | |||
Operating Leased Assets [Line Items] | |||
Finance lease, liability | 23,200 | 23,200 | |
Finance lease,ROU asset | $ 23,200 | $ 23,200 | |
Minimum [Member] | Corporate Office Leases [Member] | |||
Operating Leased Assets [Line Items] | |||
Discount rate | 3.30% | 3.30% | |
Remaining lease terms (inclusive of applicable extension options) | 1 year | ||
Minimum [Member] | Ground Leases [Member] | |||
Operating Leased Assets [Line Items] | |||
Discount rate | 4.40% | 4.40% | |
Operating lease expiration year | 2042 | ||
Maximum [Member] | Corporate Office Leases [Member] | |||
Operating Leased Assets [Line Items] | |||
Discount rate | 3.90% | 3.90% | |
Remaining lease terms | 10 years | 10 years | |
Remaining lease terms (inclusive of applicable extension options) | 23 years | ||
Maximum [Member] | Ground Leases [Member] | |||
Operating Leased Assets [Line Items] | |||
Discount rate | 5.50% | 5.50% | |
Operating lease expiration year | 2113 | ||
Residential Apartment Leases [Member] | |||
Operating Leased Assets [Line Items] | |||
Percentage of rental income | 97.10% | ||
Retail Commercial Leases [Member] | |||
Operating Leased Assets [Line Items] | |||
Percentage of rental income | 2.90% | ||
Retail Commercial Leases [Member] | Minimum [Member] | |||
Operating Leased Assets [Line Items] | |||
Retail/commercial leases term | 5 years | 5 years | |
Retail Commercial Leases [Member] | Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Retail/commercial leases term | 10 years | 10 years |
Leases - Summary of Lease Incom
Leases - Summary of Lease Income Types Relating to Lease Payments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Operating Leased Assets [Line Items] | ||
Total lease revenue | $ 642,854 | $ 1,896,059 |
Residential Leases [Member] | ||
Operating Leased Assets [Line Items] | ||
Total lease revenue | 624,281 | 1,841,133 |
Retail Lease [Member] | ||
Operating Leased Assets [Line Items] | ||
Total lease revenue | 18,573 | 54,926 |
Residential and Retail Rent [Member] | ||
Operating Leased Assets [Line Items] | ||
Total lease revenue | 629,473 | 1,856,365 |
Residential and Retail Rent [Member] | Residential Leases [Member] | ||
Operating Leased Assets [Line Items] | ||
Total lease revenue | 611,020 | 1,801,749 |
Residential and Retail Rent [Member] | Retail Lease [Member] | ||
Operating Leased Assets [Line Items] | ||
Total lease revenue | 18,453 | 54,616 |
Parking Rent [Member] | ||
Operating Leased Assets [Line Items] | ||
Total lease revenue | 9,505 | 28,133 |
Parking Rent [Member] | Residential Leases [Member] | ||
Operating Leased Assets [Line Items] | ||
Total lease revenue | 9,405 | 27,874 |
Parking Rent [Member] | Retail Lease [Member] | ||
Operating Leased Assets [Line Items] | ||
Total lease revenue | 100 | 259 |
Storage Rent [Member] | ||
Operating Leased Assets [Line Items] | ||
Total lease revenue | 960 | 2,847 |
Storage Rent [Member] | Residential Leases [Member] | ||
Operating Leased Assets [Line Items] | ||
Total lease revenue | 940 | 2,796 |
Storage Rent [Member] | Retail Lease [Member] | ||
Operating Leased Assets [Line Items] | ||
Total lease revenue | 20 | 51 |
Pet Rent [Member] | ||
Operating Leased Assets [Line Items] | ||
Total lease revenue | 2,916 | 8,714 |
Pet Rent [Member] | Residential Leases [Member] | ||
Operating Leased Assets [Line Items] | ||
Total lease revenue | $ 2,916 | $ 8,714 |
Leases - Summary of Lease Inc_2
Leases - Summary of Lease Income Types Relating to Lease Payments (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Leased Assets [Line Items] | ||||
Other rental income | $ 685,120 | $ 652,677 | $ 2,016,796 | $ 1,925,128 |
Rental [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Other rental income | $ 42,200 | $ 120,700 |
Leases - Summary of Right-of-Us
Leases - Summary of Right-of-Use Assets and Related Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Operating Leased Assets [Line Items] | ||
Right-of-use assets | $ 481,044 | $ 434,201 |
Lease liabilities | 333,312 | $ 278,287 |
Corporate Office Leases [Member] | ||
Operating Leased Assets [Line Items] | ||
Right-of-use assets | 43,739 | |
Lease liabilities | 45,237 | |
Ground Leases [Member] | ||
Operating Leased Assets [Line Items] | ||
Right-of-use assets | 414,104 | |
Finance lease, right-of-use asset | 23,201 | |
Lease liabilities | 264,865 | |
Finance lease, liabilities | $ 23,210 |
Leases - Summary of Quantitativ
Leases - Summary of Quantitative Disclosures for Lessees (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Lease cost: | ||
Interest on lease liabilities (capitalized) | $ 55 | $ 55 |
Total lease cost | $ 7,837 | 23,331 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Investing cash flows from finance leases (capitalized) | 47 | |
ROU assets obtained in exchange for new finance lease liabilities | $ 23,201 | |
Weighted-average remaining lease term – finance leases | 19 years 10 months 24 days | 19 years 10 months 24 days |
Weighted-average discount rate – finance leases | 3.00% | 3.00% |
Corporate Office Leases [Member] | ||
Lease cost: | ||
Operating lease cost | $ 935 | $ 2,753 |
Short-term lease cost | 56 | 168 |
Variable lease cost | $ 361 | 1,130 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from Operating leases | 4,128 | |
ROU assets obtained in exchange for new operating lease liabilities | $ 45,791 | |
Weighted-average remaining lease term – operating leases | 19 years 2 months 12 days | 19 years 2 months 12 days |
Weighted-average discount rate – operating leases | 3.20% | 3.20% |
Ground Leases [Member] | ||
Lease cost: | ||
Operating lease cost | $ 5,550 | $ 16,650 |
Variable lease cost | $ 880 | 2,575 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from Operating leases | 12,035 | |
ROU assets obtained in exchange for new operating lease liabilities | $ 422,018 | |
Weighted-average remaining lease term – operating leases | 56 years 4 months 24 days | 56 years 4 months 24 days |
Weighted-average discount rate – operating leases | 5.00% | 5.00% |
Leases - Summary of Undiscounte
Leases - Summary of Undiscounted Cash Flows for Contractual Obligations for Minimum Rent Payments/Receipts (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Remaining 2019 | $ (141) |
2020 | (567) |
2021 | (578) |
2022 | (590) |
2023 | (601) |
2024 | (614) |
Thereafter | (33,850) |
Total | (36,941) |
Remaining 2019 | (4,175) |
2020 | (16,840) |
2021 | (16,862) |
2022 | (16,602) |
2023 | (16,687) |
2024 | (17,014) |
Thereafter | (977,238) |
Total | (1,065,418) |
Remaining 2019 | 16,194 |
2020 | 63,409 |
2021 | 60,140 |
2022 | 56,624 |
2023 | 49,150 |
2024 | 41,950 |
Thereafter | 149,208 |
Total | $ 436,675 |
Leases - Summary of Reconciliat
Leases - Summary of Reconciliation of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Total minimum rent payments | $ 1,102,359 |
Less: Lease discount | 769,047 |
Lease liabilities | $ 333,312 |
Debt - Mortgage Notes Payable -
Debt - Mortgage Notes Payable - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Mortgage notes payable | $ 1,962,471 | $ 2,385,470 |
Debt instrument, maturity date | Jan. 10, 2022 | |
Mortgages [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage notes payable | $ 4,900 | |
Debt instrument, maturity date | May 28, 2061 | |
Write off of deferred debt issuance cost | $ 2,300 | |
Write off unamortized (premium) discount | $ 6,200 | |
Weighted average interest rate | 3.90% | |
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 | 5.29% | |
Variable Rate Construction Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Jun. 25, 2022 | |
Variable rate of construction mortgage debt | $ 7,600 | |
Total commitment amount | 67,600 | |
Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Repayments of long-term debt | $ 132,600 | |
Debt instrument maturity year start | 2032 | |
Debt instrument maturity year, end | 2036 | |
Conventional Floating-rate Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Repayments of long-term debt | $ 5,900 | |
Debt instrument maturity year start | 2032 | |
Debt instrument maturity year, end | 2035 | |
Mortgages Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.79% | |
Repayments of long-term debt | $ 84,500 | |
Debt instrument, maturity date | 2053 | |
Prepayment penalty charges | $ 3,400 | |
Credit enhanced debt [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage notes payable | 301,700 | |
Fannie Mae Pool 3 [Member] | Mortgages [Member] | ||
Debt Instrument [Line Items] | ||
Proceeds from issuance of long-term debt | $ 288,100 | |
Debt instrument, maturity date | Mar. 1, 2029 | |
Debt instrument, interest rate, stated percentage | 3.94% | |
Freddie Mac Loan Pool [Member] | Mortgages [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Jul. 1, 2020 | |
Debt instrument, interest rate, stated percentage | 5.78% | |
Repayments of long-term debt | $ 500,000 |
Debt - Notes - Additional Infor
Debt - Notes - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Unsecured notes | $ 6,675,084,000 | $ 5,933,286,000 |
Repayments of unsecured debt | $ 450,000,000 | |
Debt instrument, maturity date | Jan. 10, 2022 | |
Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Aug. 1, 2047 | |
Weighted average interest rate | 4.26% | |
Notes Payable, Other Payables [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 2.50% | |
Notes Payable, Other Payables [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 7.57% | |
3.00% Notes [Member] | ||
Debt Instrument [Line Items] | ||
Proceeds from issuance of unsecured debt | $ 600,000,000 | |
Debt instrument, interest rate, stated percentage | 3.00% | |
Proceeds from debt, net of issuance costs | $ 597,500,000 | |
2.50% Notes [Member] | ||
Debt Instrument [Line Items] | ||
Proceeds from issuance of unsecured debt | $ 600,000,000 | |
Debt instrument, interest rate, stated percentage | 2.50% | |
Proceeds from debt, net of issuance costs | $ 597,000,000 | |
2.375% Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 2.375% | |
Repayments of unsecured debt | $ 450,000 | |
Debt instrument, basis spread on variable rate | 0.61% | |
2.375% Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, description of variable rate basis | 90-Day LIBOR plus 0.61% |
Debt - Line of Credit and Comme
Debt - Line of Credit and Commercial Paper - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
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 |
Weighted average interest rate | 2.61% |
Weighted average amount outstanding | $ 384,700,000 |
Commercial paper weighted average days outstanding | 28 days |
Commercial paper principal outstanding | $ 500,000,000 |
Unsecured Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Unsecured revolving credit facility | 2,000,000,000 |
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 | 3.14% |
Debt - Line of Credit and Com_2
Debt - Line of Credit and Commercial Paper - Schedule of Unsecured Revolving Credit Facility (Details) - Unsecured Revolving Credit Facility | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Line of Credit Facility [Line Items] | |
Unsecured revolving credit facility | $ 2,000,000,000 |
Commercial paper balance outstanding | (355,000,000) |
Other restricted amounts | (100,929,000) |
Unsecured revolving credit facility availability | $ 1,544,071,000 |
Debt - Other - Additional Infor
Debt - Other - Additional Information (Details) $ in Millions | Sep. 30, 2019USD ($) |
Debt Disclosure [Abstract] | |
Letters of credit outstanding | $ 9 |
Derivative and Other Fair Val_3
Derivative and Other Fair Value Instruments - Summary of Carrying and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Carrying Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt, net | $ 8,991,936 | $ 8,817,939 |
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 | 9,560,862 | 8,833,928 |
Mortgage Notes Payable, Net [Member] | Carrying Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt, net | 1,962,471 | 2,385,470 |
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 | 1,961,120 | 2,352,502 |
Unsecured Debt [Member] | Carrying Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt, net | 7,029,465 | 6,432,469 |
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 | $ 7,599,742 | $ 6,481,426 |
Derivative and Other Fair Val_4
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 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||||
Fair Value Of SERP Investments | $ 146,542 | $ 134,088 | ||
Assets, Fair Value Disclosure | 136,088 | |||
Other Liabilities, Fair Value Disclosure | 146,542 | 134,088 | ||
Liabilities, Fair Value Disclosure | 146,216 | |||
Redeemable Noncontrolling Interests - Operating Partnership/Redeemable Limited Partners | 494,999 | 379,106 | $ 381,239 | $ 366,955 |
Forward Starting Swaps [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Forward Starting Swaps | 2,000 | |||
Forward Starting Swaps | 9,851 | |||
Fair Value Hedges [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, fair value | 2,277 | |||
Fair Value, Inputs, Level 1 [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value Of SERP Investments | 146,542 | 134,088 | ||
Assets, Fair Value Disclosure | 134,088 | |||
Other Liabilities, Fair Value Disclosure | 146,542 | 134,088 | ||
Liabilities, Fair Value Disclosure | 134,088 | |||
Redeemable Noncontrolling Interests - Operating Partnership/Redeemable Limited Partners | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Forward Starting Swaps [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Forward Starting Swaps | 0 | |||
Forward Starting Swaps | 0 | |||
Fair Value, Inputs, Level 1 [Member] | Fair Value Hedges [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, fair value | 0 | |||
Fair Value, Inputs, Level 2 [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value Of SERP Investments | 0 | 0 | ||
Assets, Fair Value Disclosure | 2,000 | |||
Other Liabilities, Fair Value Disclosure | 0 | 0 | ||
Liabilities, Fair Value Disclosure | 12,128 | |||
Redeemable Noncontrolling Interests - Operating Partnership/Redeemable Limited Partners | 494,999 | 379,106 | ||
Fair Value, Inputs, Level 2 [Member] | Forward Starting Swaps [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Forward Starting Swaps | 2,000 | |||
Forward Starting Swaps | 9,851 | |||
Fair Value, Inputs, Level 2 [Member] | Fair Value Hedges [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, fair value | 2,277 | |||
Fair Value, Inputs, Level 3 [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value Of SERP Investments | 0 | 0 | ||
Assets, Fair Value Disclosure | 0 | |||
Other Liabilities, Fair Value Disclosure | 0 | 0 | ||
Liabilities, Fair Value Disclosure | 0 | |||
Redeemable Noncontrolling Interests - Operating Partnership/Redeemable Limited Partners | $ 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Forward Starting Swaps [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Forward Starting Swaps | 0 | |||
Forward Starting Swaps | 0 | |||
Fair Value, Inputs, Level 3 [Member] | Fair Value Hedges [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability, fair value | $ 0 |
Derivative and Other Fair Val_5
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 | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in Income on Derivative | $ 2,277 | $ (1,491) |
Amount of Gain/(Loss) Recognized in Income on Hedged Item | (2,277) | 1,491 |
Interest Rate Swap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in Income on Derivative | 2,277 | (1,491) |
Amount of Gain/(Loss) Recognized in Income on Hedged Item | $ (2,277) | $ 1,491 |
Derivative and Other Fair Val_6
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 | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effective Portion - Amount of Gain/(Loss) Recognized in OCI on Derivative | $ (33,765) | $ 24,021 |
Effective Portion - Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income | (14,659) | (13,902) |
Ineffective Portion - Amount of Gain/ (Loss) Reclassified from Accumulated OCI into Income | 0 | |
Forward Starting Swaps [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effective Portion - Amount of Gain/(Loss) Recognized in OCI on Derivative | (33,765) | 24,021 |
Effective Portion - Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income | $ (14,659) | (13,902) |
Ineffective Portion - Amount of Gain/ (Loss) Reclassified from Accumulated OCI into Income | $ 0 |
Derivative and Other Fair Val_7
Derivative and Other Fair Value Instruments - Additional Information (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Jul. 31, 2019USD ($)DerivativeInstrument | Jun. 30, 2019USD ($)DerivativeInstrument | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Derivative [Line Items] | ||||
Unrealized gain (loss) on interest rate cash flow hedges, pretax, accumulated other comprehensive income (loss) | $ 84,100 | $ 65,000 | ||
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months, net | 25,600 | |||
Number of interest rate swaps matured | DerivativeInstrument | 6 | |||
Repayments of unsecured debt | $ 450,000 | |||
2.375% Notes [Member] | ||||
Derivative [Line Items] | ||||
Repayments of unsecured debt | $ 450,000 | |||
Debt instrument, interest rate, stated percentage | 2.375% | |||
Forward Starting Swaps [Member] | ||||
Derivative [Line Items] | ||||
Forward starting swaps settled | DerivativeInstrument | 10 | |||
Debt instrument, term | 10 years | |||
Proceeds from settlement of derivative instruments | $ 41,800 | |||
Public notes, face value | 600,000 | |||
Interest expense | 200 | |||
Increase (decrease) in charges hedge termination activities | $ 41,600 |
Earnings Per Share and Earnin_3
Earnings 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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 277,846 | $ 223,846 | $ 708,402 | $ 562,804 |
Allocation to Noncontrolling Interests – Operating Partnership | (9,910) | (8,159) | (25,339) | (20,517) |
Partially Owned Properties | (830) | (750) | (2,450) | (1,939) |
Preferred distributions | (773) | (773) | (2,318) | (2,318) |
Net income available to Common Shares | 266,333 | 214,164 | 678,295 | 538,030 |
Numerator for net income per share – diluted | $ 276,243 | $ 222,323 | $ 703,634 | $ 558,547 |
Weighted average Common Shares outstanding | 370,768 | 368,028 | 370,227 | 367,920 |
OP Units | 12,941 | 12,884 | 12,915 | 12,871 |
Dilutive Securities Options | 3,187 | 2,972 | 3,035 | 2,642 |
Denominator for net income per share – diluted | 386,896 | 383,884 | 386,177 | 383,433 |
Net income per share – basic | $ 0.72 | $ 0.58 | $ 1.83 | $ 1.46 |
Net income per share – diluted | $ 0.71 | $ 0.58 | $ 1.82 | $ 1.46 |
Earnings Per Share and Earnin_4
Earnings 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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net income | $ 277,846 | $ 223,846 | $ 708,402 | $ 562,804 |
Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties | $ (830) | $ (750) | $ (2,450) | $ (1,939) |
Dilutive Securities Options | 3,187 | 2,972 | 3,035 | 2,642 |
Denominator for net income per share – diluted | 386,896 | 383,884 | 386,177 | 383,433 |
Net income per Unit – basic | $ 0.72 | $ 0.58 | $ 1.83 | $ 1.46 |
Net income per Unit – diluted | $ 0.71 | $ 0.58 | $ 1.82 | $ 1.46 |
ERPOP [Member] | ||||
Net income | $ 277,846 | $ 223,846 | $ 708,402 | $ 562,804 |
Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties | (830) | (750) | (2,450) | (1,939) |
Allocation to Preference Units | (773) | (773) | (2,318) | (2,318) |
Numerator for net income per Unit – basic and diluted | $ 276,243 | $ 222,323 | $ 703,634 | $ 558,547 |
Denominator for net income per Unit – basic | 383,709 | 380,912 | 383,142 | 380,791 |
Dilutive Securities Options | 3,187 | 2,972 | 3,035 | 2,642 |
Denominator for net income per share – diluted | 386,896 | 383,884 | 386,177 | 383,433 |
Net income per Unit – basic | $ 0.72 | $ 0.58 | $ 1.83 | $ 1.46 |
Net income per Unit – diluted | $ 0.71 | $ 0.58 | $ 1.82 | $ 1.46 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($)PropertyApartmentUnit | |
Commitments And Contingencies [Abstract] | |
Projects in various stages of development | 2 |
Partially owned projects in various stages of development | 1 |
Units in various stages of development | ApartmentUnit | 824 |
Consolidated project under development commitment fund | $ | $ 459.4 |
Various stages of development with estimated completion dates ranging through September 30, 2021 | Sep. 30, 2021 |
Reportable Segments - Additiona
Reportable Segments - Additional Information (Details) - Customer | Sep. 30, 2019 | Sep. 30, 2018 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Rental income | $ 685,120 | $ 652,677 | $ 2,016,796 | $ 1,925,128 |
Property and maintenance expense | (114,966) | (110,541) | (338,497) | (322,487) |
Real estate taxes and insurance expense | (87,546) | (87,388) | (270,434) | (268,784) |
Operating income | 368,363 | 339,403 | 947,592 | 896,088 |
Same Store, Non-same Store and Other | ||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Rental income | 685,120 | 652,677 | 2,016,796 | 1,925,128 |
Property and maintenance expense | (114,966) | (110,541) | (338,497) | (322,487) |
Real estate taxes and insurance expense | (87,546) | (87,388) | (270,434) | (268,784) |
Total operating expenses | (202,512) | (197,929) | (608,931) | (591,271) |
Operating income | $ 482,608 | $ 454,748 | $ 1,407,865 | $ 1,333,857 |
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 | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Rental income | $ 685,120 | $ 652,677 | $ 2,016,796 | $ 1,925,128 | |
Operating income | 368,363 | 339,403 | 947,592 | 896,088 | |
Total Assets | 21,054,056 | 21,054,056 | $ 20,394,209 | ||
Capital Expenditures | 128,335 | ||||
Same store | |||||
Segment Reporting Information [Line Items] | |||||
Rental income | 649,712 | 628,454 | 1,857,679 | 1,798,638 | |
Operating expenses | 196,520 | 189,582 | 559,793 | 539,070 | |
Operating income | 453,192 | 438,872 | 1,297,886 | 1,259,568 | |
Total Assets | 17,385,849 | 17,385,849 | |||
Capital Expenditures | 119,911 | ||||
Non-same store/other | |||||
Segment Reporting Information [Line Items] | |||||
Rental income | 35,408 | 24,223 | 159,117 | 126,490 | |
Operating expenses | 5,992 | 8,347 | 49,138 | 52,201 | |
Operating income | 29,416 | 15,876 | 109,979 | 74,289 | |
Total Assets | 3,668,207 | 3,668,207 | |||
Capital Expenditures | 8,424 | ||||
Same Store, Non-same Store and Other | |||||
Segment Reporting Information [Line Items] | |||||
Rental income | 685,120 | 652,677 | 2,016,796 | 1,925,128 | |
Operating expenses | 202,512 | 197,929 | 608,931 | 591,271 | |
Operating income | 482,608 | 454,748 | 1,407,865 | 1,333,857 | |
Other markets | Same store | |||||
Segment Reporting Information [Line Items] | |||||
Rental income | 520 | 484 | 1,560 | 1,453 | |
Operating expenses | 168 | 164 | 545 | 503 | |
Operating income | 352 | 320 | 1,015 | 950 | |
Total Assets | 12,867 | 12,867 | |||
Capital Expenditures | 165 | ||||
Los Angeles | Same store | |||||
Segment Reporting Information [Line Items] | |||||
Rental income | 122,506 | 118,864 | 350,841 | 337,047 | |
Operating expenses | 36,666 | 34,683 | 102,851 | 96,431 | |
Operating income | 85,840 | 84,181 | 247,990 | 240,616 | |
Total Assets | 3,002,609 | 3,002,609 | |||
Capital Expenditures | 23,301 | ||||
Orange County | Same store | |||||
Segment Reporting Information [Line Items] | |||||
Rental income | 26,636 | 25,599 | 78,522 | 75,595 | |
Operating expenses | 6,382 | 6,203 | 18,583 | 18,434 | |
Operating income | 20,254 | 19,396 | 59,939 | 57,161 | |
Total Assets | 409,559 | 409,559 | |||
Capital Expenditures | 7,460 | ||||
San Diego | Same store | |||||
Segment Reporting Information [Line Items] | |||||
Rental income | 24,064 | 23,215 | 71,088 | 68,640 | |
Operating expenses | 6,447 | 6,234 | 18,532 | 17,988 | |
Operating income | 17,617 | 16,981 | 52,556 | 50,652 | |
Total Assets | 394,352 | 394,352 | |||
Capital Expenditures | 3,161 | ||||
Subtotal - Southern California | Same store | |||||
Segment Reporting Information [Line Items] | |||||
Rental income | 173,206 | 167,678 | 500,451 | 481,282 | |
Operating expenses | 49,495 | 47,120 | 139,966 | 132,853 | |
Operating income | 123,711 | 120,558 | 360,485 | 348,429 | |
Total Assets | 3,806,520 | 3,806,520 | |||
Capital Expenditures | 33,922 | ||||
San Francisco | Same store | |||||
Segment Reporting Information [Line Items] | |||||
Rental income | 127,104 | 122,075 | 359,867 | 346,485 | |
Operating expenses | 31,438 | 30,420 | 87,104 | 84,581 | |
Operating income | 95,666 | 91,655 | 272,763 | 261,904 | |
Total Assets | 3,267,869 | 3,267,869 | |||
Capital Expenditures | 19,422 | ||||
Washington DC | Same store | |||||
Segment Reporting Information [Line Items] | |||||
Rental income | 111,712 | 108,979 | 330,944 | 323,549 | |
Operating expenses | 34,797 | 34,549 | 101,969 | 100,575 | |
Operating income | 76,915 | 74,430 | 228,975 | 222,974 | |
Total Assets | 3,600,267 | 3,600,267 | |||
Capital Expenditures | 16,517 | ||||
New York | Same store | |||||
Segment Reporting Information [Line Items] | |||||
Rental income | 117,382 | 114,407 | 340,828 | 332,474 | |
Operating expenses | 48,293 | 45,143 | 142,047 | 133,001 | |
Operating income | 69,089 | 69,264 | 198,781 | 199,473 | |
Total Assets | 3,915,125 | 3,915,125 | |||
Capital Expenditures | 17,532 | ||||
Boston | Same store | |||||
Segment Reporting Information [Line Items] | |||||
Rental income | 59,354 | 56,724 | 169,576 | 163,292 | |
Operating expenses | 16,243 | 16,124 | 46,645 | 45,473 | |
Operating income | 43,111 | 40,600 | 122,931 | 117,819 | |
Total Assets | 1,479,159 | 1,479,159 | |||
Capital Expenditures | 18,191 | ||||
Seattle | Same store | |||||
Segment Reporting Information [Line Items] | |||||
Rental income | 60,434 | 58,107 | 154,453 | 150,103 | |
Operating expenses | 16,086 | 16,062 | 41,517 | 42,084 | |
Operating income | 44,348 | 42,045 | 112,936 | 108,019 | |
Total Assets | 1,304,042 | 1,304,042 | |||
Capital Expenditures | 14,162 | ||||
Non-same store | Non-same store/other | |||||
Segment Reporting Information [Line Items] | |||||
Rental income | 32,171 | 8,160 | 136,353 | 69,334 | |
Operating expenses | 9,676 | 2,785 | 43,801 | 25,322 | |
Operating income | 22,495 | 5,375 | 92,552 | 44,012 | |
Total Assets | 3,109,994 | 3,109,994 | |||
Capital Expenditures | 7,757 | ||||
Other | Non-same store/other | |||||
Segment Reporting Information [Line Items] | |||||
Rental income | 3,237 | 16,063 | 22,764 | 57,156 | |
Operating expenses | (3,684) | 5,562 | 5,337 | 26,879 | |
Operating income | 6,921 | $ 10,501 | 17,427 | $ 30,277 | |
Total Assets | $ 558,213 | 558,213 | |||
Capital Expenditures | $ 667 |
Reportable Segments - NOI for_2
Reportable Segments - NOI for Each Segment from Our Rental Real Estate Specific to Continuing Operations (Parenthetical) (Details) - Property | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Disclosure Of Entitys Reportable Segments [Abstract] | ||||
Units in same store properties | 75,290 | 75,290 | 72,979 | 72,979 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Bonds [Member] - USD ($) $ in Millions | Oct. 01, 2019 | Sep. 30, 2019 |
Subsequent Event [Line Items] | ||
Repayments of long-term debt | $ 132.6 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Repayments of long-term debt | $ 20 |