The documents indicate that the substantial increase in **Interest and other income** in Q1 2024—from **$1,538 thousand** in Q1 2023 to **$9,329 thousand** in Q1 2024—is potentially attributable to factors such as **realized/unrealized gains on investment securities** and **short-term investment income**. However, they do not provide a detailed breakdown of the specific drivers behind this increase.  **[0000950170-24-052144_eqr-20240331.htm:12]** **[0000950170-24-089300_eqr-20240630.htm:46]** 

Why was Interest and other income so high in Q1 2024?

The spike in **Other expenses** in Q1 2024 was primarily driven by a sharp increase in the **Insurance/Litigation/Environmental Settlement or Reserve Expense**, which rose from **$4,999 thousand** in Q1 2023 to **$30,478 thousand** in Q1 2024 due to adjustments to litigation reserves related to late fee charges in California. Additionally, there were contributions from changes in **Write-off of Pursuit Costs** (a decrease from **$1,332 thousand** to **$548 thousand**) and **Advocacy Contributions** (an increase from **$7 thousand** to **$141 thousand**), while the absence of **Data Transformation Project** expenses (which had been **$2,080 thousand** in Q1 2023) partially offset some of the rise, though the reserve adjustments were the primary factor.  **[0000950170-24-046921_eqr-ex99_1.htm:16]** 

What drove the spike in Other expenses in Q1 2024?

The net gain on real estate sales turned nearly neutral in Q3 2024 because the company experienced a **loss on the sale of one consolidated apartment property** during that quarter, whereas in Q3 2023 it recorded a **gain on the sale of a similar property**. This change in the outcome of that property sale significantly reduced the net gain in Q3 2024.  **[0000950170-24-120716_eqr-20240930.htm:6]** **[0000950170-24-120716_eqr-20240930.htm:46]** 

Why did the net gain on real estate sales turn nearly neutral in Q3 2024?

The higher **Net income** in **Q4 2024** was primarily driven by a **significant net gain** on sales of real estate properties of **$318,968 thousand** and enhanced operating performance. The company's **same-store Net Operating Income (NOI)** increased due to a **3.0% rise in same-store revenues** and controlled expense growth at **2.9%**, which further supported profitability. These factors combined with consistent depreciation and other adjustments contributed to the overall increase in net income.  **[0000950170-25-012330_eqr-ex99_1.htm:19]** **[0000950170-25-012330_eqr-ex99_1.htm:10]** **[0000950170-25-019894_eqr-20241231.htm:54]** **[0000950170-25-012330_eqr-ex99_1.htm:1]** **[EQR_3414243_1]** 

What factors contributed to the higher Net income in Q4 2024?

The EPS improvement in Q4 2024 was reflected by an increase from **$0.82** in Q4 2023 to **$1.10** in Q4 2024, representing a rise of **$0.28** or **34.1%**.  **[0000950170-25-012330_eqr-ex99_1.htm:0]**  However, the documents do not provide explicit details on the factors driving this enhancement, only suggesting that improvements in operational performance, revenue changes, expenses, or other financial activities might have contributed.  **[0000950170-25-012330_eqr-ex99_1.htm:0]** 

How was EPS enhanced in Q4 2024?

fd8d94262f30c39f2a1f2ca3ca5888f66652dcf3b39f77a2b3553408d8ef6c5d

Equity Residential’s acquisition activity was the primary driver for the spike in **real estate acquisition investments** in Q3 2024. The company acquired **14 properties consisting of 4,418 apartment units** in key expansion markets (Atlanta, Dallas/Ft. Worth, and Denver) for a total purchase price of approximately **$1.26 billion** at a weighted average cap rate of **5.1%**. In addition, the company executed an **$89.5 million acquisition** of a two-year-old property in suburban Atlanta after the quarter ended, further contributing to the increase in investment. These acquisitions aligned with the firm's strategy to expand into high-growth areas that feature strong job growth, affluent renters, and relatively low regulatory risks.  **[0000950170-24-119030_eqr-ex99_1.htm:1]** **[0000950170-24-119030_eqr-ex99_1.htm:3]** **[EQR_3405123_4]** 

Why did real estate acquisition investments spike so high in Q3 2024?

The increase in capital expenditures to real estate in Q1 2024 was driven by a combination of targeted investments aimed at enhancing property quality and operational efficiency. **EQR allocated $73,520 thousand in total**, with a significant portion devoted to same-store properties. Key drivers included **renovation expenditures of $22,280 thousand** (for NOI-enhancing investments, including sustainability and technology upgrades), **building improvements totaling $28,741 thousand** (covering critical upgrades such as roof replacements, paving, and mechanical systems), and **replacements amounting to $15,050 thousand** to maintain property quality. Additionally, non-same-store expenditures increased, notably **$4,055 thousand** for major renovations that required significant unit vacancies. These strategic expenditures collectively explain the notable rise in capital expenditures during the period.  **[0000950170-24-046921_eqr-ex99_1.htm:14]** **[0000950170-24-052144_eqr-20240331.htm:36]** **[0000950170-24-046921_eqr-ex99_1.htm:18]** 

What drove the increase in capital expenditures to real estate in Q1 2024?

The decrease in capital expenditures to real estate in Q3 2024 was driven largely by changes in how Equity Residential allocated its spending. In particular, **renovation expenditures for non‐same store properties were lower**, as one major renovation had substantially been completed in Q2 2024 while another was being extended into 2026. This adjustment in the timing and scale of renovations, along with more focused investments in building improvements and recurring maintenance expenditures, contributed to the overall reduction in Q3 2024 spending on real estate assets.  **[0000950170-24-119030_eqr-ex99_1.htm:17]** 

Why were capital expenditures to real estate lower in Q3 2024?

The higher operating cash flow in Q2 2024 was primarily driven by **increased Net Operating Income (NOI)**, which reflected improvements in factors such as **average rental rates, physical occupancy levels, and operating expenses related to properties**. Additionally, changes in the **timing of real estate tax payments** further supported the increase in cash provided by operating activities.  **[0000950170-24-089300_eqr-20240630.htm:7]** **[0000950170-24-089300_eqr-20240630.htm:48]** 

What factors contributed to the higher operating cash flow in Q2 2024?

The documents show that the **Net cash provided by operating activities** for **Q3 2023** was **442,544 thousand USD**  **[0000950170-23-058214_eqr-20230930.htm:7]** **[0000950170-23-058214_eqr-20230930.htm:14]**  while in **Q3 2024** it was **401,414 thousand USD**.  **[0000950170-24-120716_eqr-20240930.htm:14]** **[0000950170-24-120716_eqr-20240930.htm:7]**  However, the explanations provided—such as increased NOI driven by **Same Store Revenues**, higher **Average Rental Rates**, and lower **Resident Turnover**—relate to results over the nine-month period ending September 30, 2024.  **[0000950170-24-119030_eqr-ex99_1.htm:10]** **[0000950170-24-119030_eqr-ex99_1.htm:9]** **[EQR_3405123_6]**  The documents do not offer a definitive explanation about why the operating cash flow dropped specifically in **Q3 2024**. While the overall nine-month performance benefited from certain factors, the precise quantitative drivers causing the quarter-over-quarter decline in Q3 have not been detailed.

Why did operating cash flow drop in Q3 2024?

5eb7d142f20f429ed6cb34c32fa47c539089c3fc5aedcdb4ea2212c1303968a4

The significant drop in **cash and cash equivalents** in Q3 2024 was primarily due to several strategic actions. **Equity Residential (EQR) made major acquisitions by purchasing 14 properties (4,418 units) for approximately **$1.26 billion**, which required a substantial cash outlay. Additionally, **EQR issued **$600 million** in unsecured 10-year notes to help fund these acquisitions. Moreover, there was a marked increase in the use of borrowing facilities, as evidenced by the rise in the line of credit and commercial paper balance from **$409,131 thousand to $786,561 thousand** during the period. These factors collectively contributed to the sharp decline in the cash and cash equivalents balance.  **[0000950170-24-120716_eqr-20240930.htm:51]** **[0000950170-24-120716_eqr-20240930.htm:5]** **[0000950170-24-119030_eqr-ex99_1.htm:1]** 

Why did cash and cash equivalents drop so sharply in Q3 2024?

The jump in total assets in Q3 2024 was primarily driven by **increased investments in real estate** – with net real estate investments rising from **$18,902,301 thousand** to **$19,723,465 thousand** – along with a significant growth in **projects under development** (increasing from **$78,036 thousand** to **$222,055 thousand**) and higher **investments in unconsolidated entities** (rising from **$282,049 thousand** to **$359,810 thousand**).  **[0000950170-24-119030_eqr-ex99_1.htm:7]** **[0000950170-24-120716_eqr-20240930.htm:5]** 

What drove the jump in total assets in Q3 2024?

The spike was primarily driven by intense commercial paper activity. In Q3 2024, a significant amount of commercial paper was issued and then largely repaid, with **$8,610,430 thousand** in proceeds and **$(8,233,000) thousand** in repayments. Additionally, the line of credit saw an equivalent amount in proceeds and repayments at **$198,000 thousand**, reflecting active usage and rapid repayment within the period. These factors indicate that EQR used its financing mechanisms aggressively to manage short-term liquidity and fund operational requirements during this period.  **[0000950170-24-120716_eqr-20240930.htm:15]** **[0000950170-24-120716_eqr-20240930.htm:8]** 

What factors contributed to the spike in line of credit and commercial paper in Q3 2024?

The significant increase in restricted deposits in Q1 2024 was primarily caused by the **tax-deferred (1031) exchange proceeds** which surged to **$59,310 thousand** in Q1 2024 from **$0** in Q4 2023. Additionally, there were slight shifts in other areas, including a **minor decrease in earnest money deposits** (from **$524 thousand** to **$500 thousand**) and **modest increases in other restricted categories** such as replacement reserves and resident security and utility deposits.  **[0000950170-24-052144_eqr-20240331.htm:25]** 

What caused the significant increase in restricted deposits in Q1 2024?

The nearly doubling of **Projects under development** in Q1 2024 compared to Q4 2023 is primarily due to the **progression of construction activities** and the **capitalization of costs** (including construction expenses, capitalized interest, and other related expenditures) for ongoing development projects. Additionally, specific developments such as the **Laguna Clara II** project in Santa Clara, CA, and **The Basin** project in Wakefield, MA, have seen significant increases in their book values as construction progresses, contributing further to this increase.  **[0000950170-24-052144_eqr-20240331.htm:5]** **[0000950170-24-046921_eqr-ex99_1.htm:5]** **[0000950170-24-046921_eqr-ex99_1.htm:13]** **[0000950170-24-015907_eqr-20231231.htm:45]** 

Why did projects under development nearly double in Q1 2024 compared to Q4 2023?

4bdf8faf38725cb962f80fd5f2bfe0dbb6c80ff83fe344ec48db319d4a9fcd3b

d84c1c37fb07de99eb17a3d092e7d172c7b63edd1d8c8a721865d1f67470b0b2

93c854ddb63a4030e571e4d53d6be416d545aa2e53adaab34393586fd005dcc4

Rental income (USD, thousands)

Property and maintenance (USD, thousands)

Real estate taxes and insurance (USD, thousands)

Property management (USD, thousands)

General and administrative (USD, thousands)

Depreciation (USD, thousands)

Total expenses (USD, thousands)

Net gain (loss) on sales of real estate properties (USD, thousands)

Interest and other income (USD, thousands)

Other expenses (USD, thousands)

Interest Expense incurred, net (USD, thousands)

Amortization of deferred financing costs (USD, thousands)

Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of land parcels (USD, thousands)

Income and other tax (expense) benefit (USD, thousands)

Income (loss) from investments in unconsolidated entities (USD, thousands)

Net income (USD, thousands)

Net (income) loss attributable to Noncontrolling Interests - Partially Owned Properties (USD, thousands)

Net income attributable to controlling interests (USD, thousands)

Preference Units (USD, thousands)

Premium on redemption of Preference Units (USD, thousands)

Net income available to Units (USD, thousands)

Earnings per Unit - basic (USD)

Weighted average Units outstanding (Units)

Earnings per Unit - diluted (USD)

Weighted average Units outstanding (diluted) (Units)

87081a7dc3f168f32b3c4356470782df98e29e6ed65833cabeedc6b87bdae023

Adjustments for Non-Cash Items [USD, Thousands]

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Capital Expenditures (CapEx) [USD, Thousands]

Proceeds from / Repayments of Debt [USD, Thousands]

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

f2d98107e59d68944d6ad92abb27764ecf3f256d8fbeb638c62198f25870494a

e63dd5cbf53dee748e164b8d79d20843f119218c0425bdb940e2502996d63f28

8bfed606a28ff4cac9c6df418f96a3f1ac207adf168f175254e088158ee56200

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c735c4f84a9d43805d0e26e7329a7b81cf884735c734651d900c840afc7f6652

Residential and Non-Residential Rent

- Utility Recoveries (RUBS)

- Parking Rent

- Other Lease Revenue

Total Lease Revenue

Parking Revenue

Other Revenue

Total Other Rental Income

Total Rental Income

- Fee and Asset Management

Total Revenue

172e6ac402b6f59ef3aadfc096ae695942e58febe3e0f86c6a186f8d964b5c0c

EQUITY RESIDENTIAL (EQR)

Financials