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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year
Ended DECEMBER 31, 2010
OR
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
to
Commission File
Number: 1-12252
EQUITY RESIDENTIAL
(Exact Name of Registrant as
Specified in Its Charter)
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Maryland
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13-3675988
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(State or Other Jurisdiction of Incorporation or Organization)
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(I.R.S. Employer Identification No.)
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Two North Riverside Plaza, Chicago, Illinois
(Address of Principal Executive Offices)
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60606
(Zip Code)
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(312) 474-1300
(Registrants Telephone
Number, Including Area Code)
Securities registered pursuant to
Section 12(b) of the Act:
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Common Shares of Beneficial Interest, $0.01 Par Value
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New York Stock Exchange
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(Title of Each Class)
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(Name of Each Exchange on Which Registered)
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Preferred Shares of Beneficial Interest, $0.01 Par
Value
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New York Stock Exchange
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(Title of Each Class)
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(Name of Each Exchange on Which Registered)
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Securities registered pursuant to
Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known
seasoned issuer, as defined in Rule 405 of the Securities
Act. Yes x No o
Indicate by check mark if the registrant is not required to file
reports pursuant to Section 13 or Section 15(d) of the
Act. Yes o No x
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been
subject to such filing requirements for the past
90 days. Yes x No o
Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any,
every Interactive Data File required to be submitted and posted
pursuant to Rule 405 of
Regulation S-T
(§ 232.405 of this chapter) during the preceding
12 months (or for such shorter period that the registrant
was required to submit and post such
files). Yes x No o
Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of
Regulation S-K
(§ 229.405 of this chapter) is not contained herein,
and will not be contained, to the best of registrants
knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this
Form 10-K
or any amendment to this
Form 10-K.
x
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated
filer, or a smaller reporting company. See the definitions of
large accelerated filer, accelerated
filer and smaller reporting company in
Rule 12b-2
of the Exchange Act. (Check one):
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Large accelerated
filer x
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Accelerated
filer o
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Non-accelerated
filer o (Do
not check if a smaller reporting company)
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Smaller reporting
company o
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Indicate by check mark whether the registrant is a shell company
(as defined in
Rule 12b-2
of the
Act). Yes o No x
The aggregate market value of Common Shares held by
non-affiliates of the Registrant was approximately
$11.4 billion based upon the closing price on June 30,
2010 of $41.64 using beneficial ownership of shares rules
adopted pursuant to Section 13 of the Securities Exchange
Act of 1934 to exclude voting shares owned by Trustees and
Executive Officers, some of who may not be held to be affiliates
upon judicial determination.
The number of Common Shares of Beneficial Interest,
$0.01 par value, outstanding on February 16, 2011 was
293,981,029.
DOCUMENTS
INCORPORATED BY REFERENCE
Part III incorporates by reference certain information that
will be contained in the Companys Proxy Statement relating
to our 2011 Annual Meeting of Shareholders, which the Company
intends to file no later than 120 days after the end of its
fiscal year ended December 31, 2010, and thus these items
have been omitted in accordance with General
Instruction G(3) to
Form 10-K.
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EQUITY
RESIDENTIAL
TABLE
OF CONTENTS
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PART I
General
Equity Residential (EQR), a Maryland real estate
investment trust (REIT) formed in March 1993, is an
S&P 500 company focused on the acquisition,
development and management of high quality apartment properties
in top United States growth markets. EQR has elected to be taxed
as a REIT.
The Company is one of the largest publicly traded real estate
companies and is the largest publicly traded owner of
multifamily properties in the United States (based on the
aggregate market value of its outstanding Common Shares, the
number of apartment units wholly owned and total revenues
earned). The Companys corporate headquarters are located
in Chicago, Illinois and the Company also operates property
management offices in each of its markets.
EQR is the general partner of, and as of December 31, 2010
owned an approximate 95.5% ownership interest in, ERP Operating
Limited Partnership, an Illinois limited partnership (the
Operating Partnership). All of EQRs property
ownership, development and related business operations are
conducted through the Operating Partnership and its
subsidiaries. References to the Company include EQR,
the Operating Partnership and those entities owned or controlled
by the Operating Partnership
and/or EQR.
As of December 31, 2010, the Company, directly or
indirectly through investments in title holding entities, owned
all or a portion of 451 properties located in 17 states and
the District of Columbia consisting of 129,604 apartment units.
The ownership breakdown includes (table does not include various
uncompleted development properties):
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Properties
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Apartment Units
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Wholly Owned Properties
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425
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119,634
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Partially Owned Properties Consolidated
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24
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5,232
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Military Housing
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4,738
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451
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129,604
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As of December 31, 2010, the Company had approximately
4,000 employees who provided real estate operations,
leasing, legal, financial, accounting, acquisition, disposition,
development and other support functions.
Certain capitalized terms used herein are defined in the Notes
to Consolidated Financial Statements. See also Note 19 in
the Notes to Consolidated Financial Statements for additional
discussion regarding the Companys segment disclosures.
Available
Information
You may access our Annual Report on
Form 10-K,
our Quarterly Reports on
Form 10-Q,
our Current Reports on
Form 8-K
and any amendments to any of those reports we file with the SEC
free of charge at our website, www.equityresidential.com.
These reports are made available at our website as soon as
reasonably practicable after we file them with the SEC.
Business
Objectives and Operating and Investing Strategies
The Company invests in apartment communities located in
strategically targeted markets with the goal of maximizing our
risk adjusted total return (operating income plus capital
appreciation) on invested capital.
Our operating focus is on balancing occupancy and rental rates
to maximize our revenue while exercising tight cost control to
generate the highest possible return to our shareholders.
Revenue is maximized by driving qualified resident prospects to
our properties, converting this traffic cost-effectively into
new leases at the highest rent possible, keeping our residents
satisfied and renewing their leases at yet higher rents. While
we believe that it is our high-quality, well-located assets that
bring our customers to us, it is our customer service that keeps
them renting with us and recommending us to their friends.
We use technology to engage our customers in the way that they
want to be engaged. Many of our residents utilize our web-based
resident portal which allows them to review their account and
make payments, provide feedback and make service requests
on-line.
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We seek to maximize capital appreciation of our properties by
investing in markets that are characterized by conditions
favorable to multifamily property appreciation. These markets
generally feature one or more of the following:
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High barriers to entry where,
because of land scarcity or government regulation, it is
difficult or costly to build new apartment properties leading to
low supply;
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High single family home prices
making our apartments a more economical housing choice;
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Strong economic growth leading to
household formation and job growth, which in turn leads to high
demand for our apartments; and
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An attractive quality of life
leading to high demand and retention and allowing us to more
readily increase rents.
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Acquisitions and developments may be financed from various
sources of capital, which may include retained cash flow,
issuance of additional equity and debt securities, sales of
properties, joint venture agreements and collateralized and
uncollateralized borrowings. In addition, the Company may
acquire properties in transactions that include the issuance of
limited partnership interests in the Operating Partnership
(OP Units) as consideration for the acquired
properties. Such transactions may, in certain circumstances,
enable the sellers to defer, in whole or in part, the
recognition of taxable income or gain that might otherwise
result from the sales. EQR may also acquire land parcels to hold
and/or sell
based on market opportunities. The Company may also seek to
acquire properties by purchasing defaulted or distressed debt
that encumbers desirable properties in the hope of obtaining
title to property through foreclosure or
deed-in-lieu
of foreclosure proceedings. The Company has also, in the past,
converted some of its properties and sold them as condominiums
but is not currently active in this line of business.
The Company primarily sources the funds for its new property
acquisitions in its core markets with the sales proceeds from
selling assets that are older or located in non-core markets.
During the last five years, the Company has sold over 97,000
apartment units for an aggregate sales price of
$7.2 billion and acquired nearly 25,000 apartment units in
its core markets for approximately $5.5 billion. We are
currently acquiring and developing assets primarily in the
following targeted metropolitan areas: Boston, New York,
Washington DC, South Florida, Southern California,
San Francisco, Seattle and to a lesser extent Denver. We
also have investments (in the aggregate about 18% of our NOI) in
other markets including Atlanta, Phoenix, Portland, Oregon, New
England excluding Boston, Tampa, Orlando and Jacksonville but do
not intend to acquire or develop assets in these markets.
As part of its strategy, the Company purchases completed and
fully occupied apartment properties, partially completed or
partially unoccupied properties or land on which apartment
properties can be constructed. We intend to hold a diversified
portfolio of assets across our target markets. Currently, no
single metropolitan area accounts for more than 17% of our NOI,
though no guarantee can be made that NOI concentration may not
increase in the future.
We endeavor to attract and retain the best employees by
providing them with the education, resources and opportunities
to succeed. We provide many classroom and on-line training
courses to assist our employees in interacting with prospects
and residents as well as extensively train our customer service
specialists in maintaining the equipment and appliances on our
property sites. We actively promote from within and many senior
corporate and property leaders have risen from entry level or
junior positions. We monitor our employees engagement by
surveying them annually and have consistently received high
engagement scores.
We have a commitment to sustainability and consider the
environmental impacts of our business activities. With its high
density, multifamily housing is, by its nature, an
environmentally friendly property type. Our recent acquisition
and development activities have been primarily concentrated in
pedestrian-friendly urban locations near public transportation.
When developing and renovating our properties, we strive to
reduce energy and water usage by investing in energy saving
technology while positively impacting the experience of our
residents and the value of our assets. We continue to implement
a combination of irrigation, lighting and HVAC improvements at
our properties that will reduce energy and water consumption.
Debt and
Equity Activity
Please refer to Item 7, Managements Discussion and
Analysis of Financial Condition and Results of Operations,
for the Companys Capital Structure chart as of
December 31, 2010.
Major Debt and Equity Activities for the Years Ended
December 31, 2010, 2009 and 2008
During 2010:
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The Operating Partnership issued
$600.0 million of ten-year 4.75% fixed rate public notes in
a public offering at an all-in effective interest rate of 5.09%,
receiving net proceeds of $595.4 million before
underwriting fees and other expenses.
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The Company issued 2,506,645
Common Shares pursuant to its Share Incentive Plans and received
net proceeds of approximately $71.6 million.
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The Company issued 157,363 Common
Shares pursuant to its Employee Share Purchase Plan and received
net proceeds of approximately $5.1 million.
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The Company issued 6,151,198
Common Shares at an average price of $47.45 per share for total
consideration of $291.9 million pursuant to its
At-The-Market
(ATM) share offering program. See Note 3 in the
Notes to Consolidated Financial Statements for further
discussion.
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The Company repurchased and
retired 58,130 of its Common Shares at an average price of
$32.46 per share for total consideration of $1.9 million
(all related to the vesting of employee restricted shares). See
Note 3 in the Notes to Consolidated Financial Statements
for further discussion.
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During 2009:
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The Operating Partnership obtained
$500.0 million of mortgage loan proceeds through the
issuance of an 11 year (stated maturity date of
July 1, 2020) cross-collateralized loan with an all-in
fixed interest rate for 10 years at approximately 5.6%
secured by 13 properties.
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The Company issued 422,713 Common
Shares pursuant to its Share Incentive Plans and received net
proceeds of approximately $9.1 million.
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The Company issued 324,394 Common
Shares pursuant to its Employee Share Purchase Plan and received
net proceeds of approximately $5.3 million.
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The Company issued 3,497,300
Common Shares at an average price of $35.38 per share for total
consideration of $123.7 million pursuant to its ATM share
offering program. See Note 3 in the Notes to Consolidated
Financial Statements for further discussion.
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The Company repurchased and
retired 47,450 of its Common Shares at an average price of
$23.69 per share for total consideration of $1.1 million
(all related to the vesting of employee restricted shares). See
Note 3 in the Notes to Consolidated Financial Statements
for further discussion.
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The Company repurchased
$75.8 million of its 5.20% fixed rate tax-exempt notes.
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The Company repurchased at par
$105.2 million of its 4.75% fixed rate public notes due
June 15, 2009. In addition, the Company repaid the
remaining $122.2 million of its 4.75% fixed rate public
notes at maturity. See Note 9 in the Notes to Consolidated
Financial Statements for further discussion.
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The Company repurchased
$185.2 million at par and $21.7 million at a price of
106% of par of its 6.95% fixed rate public notes due
March 2, 2011. See Note 9 in the Notes to Consolidated
Financial Statements for further discussion.
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The Company repurchased
$146.1 million of its 6.625% fixed rate public notes due
March 15, 2012 at a price of 108% of par. See Note 9
in the Notes to Consolidated Financial Statements for further
discussion.
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The Company repurchased
$127.9 million of its 5.50% fixed rate public notes due
October 1, 2012 at a price of 107% of par. See Note 9
in the Notes to Consolidated Financial Statements for further
discussion.
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The Company repurchased
$17.5 million of its 3.85% convertible fixed rate public
notes due August 15, 2026 (putable in 2011) at a price
of 88.4% of par. In addition, the Company repurchased
$48.5 million of these notes at par. See Note 9 in the
Notes to Consolidated Financial Statements for further
discussion.
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During 2008:
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The Operating Partnership obtained
$500.0 million of mortgage loan proceeds through the
issuance of an 11.5 year (stated maturity date of
October 1, 2019) cross-collateralized loan with a
fixed stated interest rate for 10.5 years at 5.19% secured
by 13 properties.
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The Operating Partnership obtained
$550.0 million of mortgage loan proceeds through the
issuance of an 11.5 year (stated maturity date of
March 1, 2020) cross-collateralized loan with a fixed
stated interest rate for 10.5 years at approximately 6%
secured by 15 properties.
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The Operating Partnership obtained
$543.0 million of mortgage loan proceeds through the
issuance of an 8 year (stated maturity date of
January 1, 2017) cross-collateralized loan with a
fixed stated interest rate for 7 years at approximately 6%
secured by 18 properties.
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The Company issued 995,129 Common
Shares pursuant to its Share Incentive Plans and received net
proceeds of approximately $24.6 million.
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The Company issued 195,961 Common
Shares pursuant to its Employee Share Purchase Plan and received
net proceeds of approximately $6.2 million.
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The Company repurchased and
retired 220,085 of its Common Shares at an average price of
$35.93 per share for total consideration of $7.9 million.
See Note 3 in the Notes to Consolidated Financial
Statements for further discussion.
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The Company repurchased
$72.6 million of its 4.75% fixed rate public notes due
June 15, 2009 at a price of 99.0% of par. See Note 9
in the Notes to Consolidated Financial Statements for further
discussion.
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The Company repurchased
$101.4 million of its 3.85% convertible fixed rate public
notes due August 15, 2026 (putable in 2011) at a price
of 82.3% of par. See Note 9 in the Notes to Consolidated
Financial Statements for further discussion.
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During the first quarter of 2011 through January 13, 2011,
the Company has issued approximately 3.0 million Common
Shares at an average price of $50.84 per share for total
consideration of approximately $154.5 million through the
ATM share offering program. The Company has not issued any
shares under this program since January 13, 2011.
An unlimited amount of equity and debt securities remains
available for issuance by EQR and the Operating Partnership
under effective shelf registration statements filed with the
SEC. Most recently, EQR and the Operating Partnership filed a
universal shelf registration statement for an unlimited amount
of equity and debt securities that became automatically
effective upon filing with the SEC in October 2010 (under SEC
regulations enacted in 2005, the registration statement
automatically expires on October 14, 2013 and does not
contain a maximum issuance amount). However, as of
February 16, 2011, issuances under the ATM share offering
program are limited to 10,000,000 additional shares.
In May 2002, the Companys shareholders approved the
Companys 2002 Share Incentive Plan. In January 2003,
the Company filed a
Form S-8
registration statement to register 23,125,828 Common Shares
under this plan. As of January 1, 2011,
22,785,696 shares are the maximum shares issuable under
this plan. See Note 14 in the Notes to Consolidated
Financial Statements for further discussion.
Credit
Facilities
The Operating Partnership has a $1.425 billion (net of
$75.0 million which had been committed by a now bankrupt
financial institution and is not available for borrowing)
unsecured revolving credit facility maturing on
February 28, 2012, with the ability to increase available
borrowings by an additional $500.0 million by adding
additional banks to the facility or obtaining the agreement of
existing banks to increase their commitments. Advances under the
credit facility bear interest at variable rates based upon LIBOR
at various interest periods plus a spread (currently 0.50%)
dependent upon the Operating Partnerships credit rating or
based on bids received from the lending group. EQR has
guaranteed the Operating Partnerships credit facility up
to the maximum amount and for the full term of the facility.
As of December 31, 2010, the amount available on the credit
facility was $1.28 billion (net of $147.3 million
which was restricted/dedicated to support letters of credit and
net of the $75.0 million discussed above) and there was no
amount outstanding. During the year ended December 31,
2010, the weighted average interest rate was 0.66%. As of
December 31, 2009, the amount available on the credit
facility was $1.37 billion (net of $56.7 million which
was restricted/dedicated to support letters of credit and net of
the $75.0 million discussed above). The Company did not
draw and had no balance outstanding on its revolving credit
facility at any time during the year ended December 31,
2009.
Competition
All of the Companys properties are located in developed
areas that include other multifamily properties. The number of
competitive multifamily properties in a particular area could
have a material effect on the Companys ability to lease
apartment units at the properties or at any newly acquired
properties and on the rents charged. The Company may be
competing with other entities that have greater resources than
the Company and whose managers have more experience than the
Companys managers. In addition, other forms of rental
properties and single family housing provide housing
alternatives to potential residents of multifamily properties.
See Item 1A. Risk Factors for additional information
with respect to competition.
Environmental
Considerations
See Item 1A. Risk Factors for information concerning
the potential effects of environmental regulations on our
operations.
General
The following Risk Factors may contain defined terms that are
different from those used in the other sections of this report.
Unless otherwise indicated, when used in this section, the terms
we and us refer to Equity Residential
and its subsidiaries, including ERP Operating Limited
Partnership. This Item 1A. includes forward-looking
statements. You should refer to our discussion of the
qualifications and limitations on forward-looking statements
included in Item 7.
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The occurrence of the events discussed in the following risk
factors could adversely affect, possibly in a material manner,
our business, financial condition or results of operations,
which could adversely affect the value of our common shares of
beneficial interest or preferred shares of beneficial interest
(which we refer to collectively as Shares), limited
partnership interests in the Operating Partnership
(OP Units) and Long Term Incentive Plan Units
(LTIP Units). In this section, we refer to the
Shares, OP Units and LTIP Units together as our
securities and the investors who own Shares
and/or
OP/LTIP Units as our security holders.
Our Performance and Securities Value are Subject to Risks
Associated with the Real Estate Industry
General
Real property investments are subject to varying degrees of risk
and are relatively illiquid. Numerous factors may adversely
affect the economic performance and value of our properties and
the ability to realize that value. These factors include changes
in the global, national, regional and local economic climates,
local conditions such as an oversupply of multifamily properties
or a reduction in demand for our multifamily properties, the
attractiveness of our properties to residents, competition from
other multifamily properties and single family homes and changes
in market rental rates. Our performance also depends on our
ability to collect rent from residents and to pay for adequate
maintenance, insurance and other operating costs, including real
estate taxes, all of which could increase over time. Sources of
labor and materials required for maintenance, repair, capital
expenditure or development may be more expensive than
anticipated. Also, the expenses of owning and operating a
property are not necessarily reduced when circumstances such as
market factors and competition cause a reduction in income from
the property.
We May
Not Have Sufficient Cash Flows From Operations After Capital
Expenditures to Cover Our Distributions and Our New Dividend
Policy May Lead to Quicker Dividend Reductions
We generally consider our cash flows provided by operating
activities after capital expenditures to be adequate to meet
operating requirements and payment of distributions to our
security holders. However, there may be times when we experience
shortfalls in our coverage of distributions, which may cause us
to consider reducing our distributions
and/or using
the proceeds from property dispositions or additional financing
transactions to make up the difference. Should these shortfalls
occur for lengthy periods of time or be material in nature, our
financial condition may be adversely affected and we may not be
able to maintain our current distribution levels. While our new
dividend policy makes it less likely we will over distribute, it
will also lead to a dividend reduction more quickly than in the
past should operating results deteriorate. See Item 7 for
additional discussion regarding our new dividend policy.
We May Be
Unable to Renew Leases or Relet Apartment Units as Leases
Expire
When our residents decide not to renew their leases upon
expiration, we may not be able to relet their apartment units.
Even if the residents do renew or we can relet the apartment
units, the terms of renewal or reletting may be less favorable
than current lease terms. If we are unable to promptly renew the
leases or relet the apartment units, or if the rental rates upon
renewal or reletting are significantly lower than expected
rates, then our results of operations and financial condition
will be adversely affected. Occupancy levels and market rents
may be adversely affected by national and local economic and
market conditions including, without limitation, new
construction and excess inventory of multifamily and single
family housing, slow or negative employment growth, availability
of low interest mortgages for single family home buyers and the
potential for geopolitical instability, all of which are beyond
the Companys control. In addition, various state and local
municipalities are considering and may continue to consider rent
control legislation which could limit our ability to raise
rents. Finally, the federal governments policies, many of
which may encourage home ownership, can increase competition and
possibly limit our ability to raise rents. Consequently, our
cash flow and ability to service debt and make distributions to
security holders could be reduced.
New
Acquisitions and/or Development Projects May Fail to Perform as
Expected and Competition for Acquisitions May Result in
Increased Prices for Properties
We intend to actively acquire
and/or
develop multifamily properties for rental operations as market
conditions dictate. We may also acquire multifamily properties
that are unoccupied or in the early stages of lease up. We may
be unable to lease up these apartment properties on schedule,
resulting in decreases in expected rental revenues
and/or lower
yields due to lower occupancy and rates as well as higher than
expected concessions. We may underestimate the costs necessary
to bring an acquired property up to standards established for
its intended market position or to complete a development
property. Additionally, we expect that other major real estate
investors with significant capital will compete with us for
attractive investment opportunities or may also develop
properties in markets where we focus our development efforts.
This competition (or lack thereof) may
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increase (or depress) prices for multifamily properties. We may
not be in a position or have the opportunity in the future to
make suitable property acquisitions on favorable terms. The
total number of development units, costs of development and
estimated completion dates are subject to uncertainties arising
from changing economic conditions (such as the cost of labor and
construction materials), competition and local government
regulation.
In connection with such government regulation, we may incur
liability if our properties are not constructed and operated in
compliance with the accessibility provisions of the Americans
with Disabilities Act, the Fair Housing Act or other federal,
state or local requirements. Noncompliance could result in
fines, subject us to lawsuits and require us to remediate or
repair the noncompliance.
Risks
Involved in Real Estate Activity Through Joint
Ventures
We have in the past and may in the future develop and acquire
properties in joint ventures with other persons or entities when
we believe circumstances warrant the use of such structures.
Joint venture investments involve risks, including the
possibility that our partners might refuse to make capital
contributions when due; that we may be responsible to our
partner for indemnifiable losses; that our partner might at any
time have business or economic goals which are inconsistent with
ours; and that our partner may be in a position to take action
or withhold consent contrary to our instructions or requests.
Frequently, we and our partner may each have the right to
trigger a buy-sell arrangement, which could cause us to sell our
interest, or acquire our partners interest, at a time when
we otherwise would not have initiated such a transaction. In
some instances, joint venture partners may have competing
interests in our markets that could create conflicts of
interest. Further, the Companys joint venture partners may
experience financial distress and to the extent they do not meet
their obligations to us or our joint ventures with them, we may
be adversely affected.
Because
Real Estate Investments Are Illiquid, We May Not Be Able to Sell
Properties When Appropriate
Real estate investments generally cannot be sold quickly. We may
not be able to reconfigure our portfolio promptly in response to
economic or other conditions. This inability to reallocate our
capital promptly could adversely affect our financial condition
and ability to make distributions to our security holders.
The Value
of Investment Securities Could Result In Losses to the
Company
From time to time, the Company holds investment securities
and/or cash investments that have a higher risk profile than the
government obligations and bond funds, money market funds or
bank deposits in which we generally invest. On occasion we may
purchase securities of companies in our own industry as a means
to invest funds. There may be times when we experience declines
in the value of these investment securities, which may result in
losses to the Company and our financial condition or results of
operations could be adversely affected. Sometimes the cash we
deposit at a bank exceeds the FDIC insurance limit resulting in
risk to the Company of loss of funds if these banks fail.
Changes
in Market Conditions and Volatility of Share Prices Could
Adversely Affect the Market Price of Our
Common Shares
The stock markets, including the New York Stock Exchange, on
which we list our Common Shares, have experienced significant
price and volume fluctuations. As a result, the market price of
our Common Shares could be similarly volatile, and investors in
our Common Shares may experience a decrease in the value of
their shares, including decreases unrelated to our operating
performance or prospects. The market price of our Common Shares
may decline or fluctuate significantly in response to many
factors, including but not limited to the following:
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n
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general market and economic
conditions;
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n
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actual or anticipated
variations in our quarterly operating results or dividends;
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n
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changes in our funds from
operations, normalized funds from operations or earnings
estimates;
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n
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difficulties or inability to
access capital or extend or refinance debt;
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n
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decreasing (or uncertainty
in) real estate valuations;
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n
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a change in analyst ratings;
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n
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adverse market reaction to
any additional debt we incur in the future;
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n
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governmental regulatory
action, including changes or proposed changes to the mandates of
Fannie Mae or Freddie Mac, and changes in tax laws; and
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n
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the issuance of additional
Common Shares, or the perception that such issuances might
occur, including under our ATM program.
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9
Changes
in Laws and Litigation Risk Could Affect Our Business
We are generally not able to pass through to our residents under
existing leases any real estate or other federal, state or local
taxes. Consequently, any such tax increases may adversely affect
our financial condition and limit our ability to make
distributions to our security holders.
We may become involved in legal proceedings, including but not
limited to, proceedings related to consumer, employment,
development, condominium conversion, tort and commercial legal
issues that, if decided adversely to or settled by us, could
result in liability material to our financial condition or
results of operations.
Any
Weaknesses Identified in Our Internal Control Over Financial
Reporting Could Have an Adverse Effect on Our Share
Price
Section 404 of the Sarbanes-Oxley Act of 2002 requires us
to evaluate and report on our internal control over financial
reporting. If we identify one or more material weaknesses in our
internal control over financial reporting, we could lose
investor confidence in the accuracy and completeness of our
financial reports, which in turn could have an adverse effect on
our share price.
Environmental
Problems Are Possible and Can Be Costly
Federal, state and local laws and regulations relating to the
protection of the environment may require a current or previous
owner or operator of real estate to investigate and clean up
hazardous or toxic substances or petroleum product releases at
such property. The owner or operator may have to pay a
governmental entity or third parties for property damage and for
investigation and
clean-up
costs incurred by such parties in connection with the
contamination. These laws typically impose
clean-up
responsibility and liability without regard to whether the owner
or operator knew of or caused the presence of the contaminants.
Even if more than one person may have been responsible for the
contamination, each person covered by the environmental laws may
be held responsible for all of the
clean-up
costs incurred. In addition, third parties may sue the owner or
operator of a site for damages and costs resulting from
environmental contamination emanating from that site.
Substantially all of our properties have been the subject of
environmental assessments completed by qualified independent
environmental consulting companies. While these environmental
assessments have not revealed, nor are we aware of, any
environmental liability that our management believes would have
a material adverse effect on our business, results of
operations, financial condition or liquidity, there can be no
assurance that we will not incur such liabilities in the future.
There have been an increasing number of lawsuits against owners
and managers of multifamily properties alleging personal injury
and property damage caused by the presence of mold in
residential real estate. As some of these lawsuits have resulted
in substantial monetary judgments or settlements, insurance
carriers have reacted by excluding mold-related claims from
standard policies and pricing mold endorsements at prohibitively
high rates. While we have adopted programs designed to minimize
the existence of mold in any of our properties as well as
guidelines for promptly addressing and resolving reports of mold
to minimize any impact mold might have on our residents or the
property, should mold become an issue in the future, our
financial condition or results of operations may be adversely
affected.
We cannot be assured that existing environmental assessments of
our properties reveal all environmental liabilities, that any
prior owner of any of our properties did not create a material
environmental condition not known to us, or that a material
environmental condition does not otherwise exist as to any of
our properties.
Climate
Change
To the extent that climate change does occur, we may experience
extreme weather and changes in precipitation and temperature,
all of which may result in physical damage or a decrease in
demand for properties located in these areas or affected by
these conditions. Should the impact of climate change be
material in nature, including destruction of our properties, or
occur for lengthy periods of time, our financial condition or
results of operations may be adversely affected.
In addition, changes in federal and state legislation and
regulation on climate change could result in increased capital
expenditures to improve the energy efficiency of our existing
properties and could also require us to spend more on our new
development properties without a corresponding increase in
revenue.
10
Insurance
Policy Deductibles, Exclusions and Counterparties
As of December 31, 2010, the Companys property
insurance policy provides for a per occurrence deductible of
$250,000 and self-insured retention of $5.0 million per
occurrence, subject to a maximum annual aggregate self-insured
retention of $7.5 million, with approximately 80% of any
excess losses being covered by insurance. Any earthquake and
named windstorm losses are subject to a deductible of 5% of the
values of the buildings involved in the losses and are not
subject to the aggregate self-insured retention. The
Companys general liability and workers compensation
policies at December 31, 2010 provide for a
$2.0 million and $1.0 million per occurrence
deductible, respectively. These higher deductible and
self-insured retention amounts do expose the Company to greater
potential uninsured losses, but management has reviewed its
claims history over the years and believes the savings in
insurance premium expense justify this potential increased
exposure over the long-term. However, the potential impact of
climate change and increased severe weather could cause a
significant increase in insurance premiums and deductibles,
particularly for our coastal properties, or a decrease in the
availability of coverage, either of which could expose the
Company to even greater uninsured losses which may adversely
affect our financial condition or results of operations.
As a result of the terrorist attacks of September 11, 2001,
property insurance carriers created exclusions for losses from
terrorism from our all risk property insurance
policies. As of December 31, 2010, the Company was insured
for $500.0 million in terrorism insurance coverage, with a
$100,000 deductible. This coverage excludes losses from nuclear,
biological and chemical attacks. In the event of a terrorist
attack impacting one or more of our properties, we could lose
the revenues from the property, our capital investment in the
property and possibly face liability claims from residents or
others suffering injuries or losses. The Company has become more
susceptible to large losses as it has transformed its portfolio,
becoming more concentrated in fewer, more valuable assets over a
smaller geographical footprint.
In addition, the Company relies on third party insurance
providers for its property, general liability and workers
compensation insurance. While there has yet to be any
non-performance by these major insurance providers, should any
of them experience liquidity issues or other financial distress,
it could negatively impact the Company.
Non-Performance
by Our Operating Counterparties Could Adversely Affect Our
Performance
We have relationships with and, from time to time, we execute
transactions with or receive services from many counterparties.
As a result, defaults by counterparties could result in services
not being provided, or volatility in the financial markets could
affect counterparties ability to complete transactions
with us as intended, both of which could result in disruptions
to our operations that may adversely affect our business and
results of operations.
Debt Financing and Preferred Shares Could Adversely
Affect Our Performance
General
Please refer to Item 7, Managements Discussion and
Analysis of Financial Condition and Results of Operations,
for the Companys total debt and unsecured debt summaries
as of December 31, 2010.
In addition to debt, we have $200.0 million of combined
liquidation value of outstanding preferred shares of beneficial
interest with a weighted average dividend preference of 6.93%
per annum as of December 31, 2010. Our use of debt and
preferred equity financing creates certain risks, including the
following:
Disruptions
in the Financial Markets Could Adversely Affect Our Ability to
Obtain Debt Financing and Impact our Acquisitions and
Dispositions
Dislocations and liquidity disruptions in capital and credit
markets could impact liquidity in the debt markets, resulting in
financing terms that are less attractive to us
and/or the
unavailability of certain types of debt financing. Should the
capital and credit markets experience volatility and the
availability of funds again become limited, or be available only
on unattractive terms, we will incur increased costs associated
with issuing debt instruments. In addition, it is possible that
our ability to access the capital and credit markets may be
limited or precluded by these or other factors at a time when we
would like, or need, to do so, which would adversely impact our
ability to refinance maturing debt
and/or react
to changing economic and business conditions. Uncertainty in the
credit markets could negatively impact our ability to make
acquisitions and make it more difficult or not possible for us
to sell properties or may adversely affect the price we receive
for properties that we do sell, as prospective buyers may
experience increased costs of debt financing or difficulties in
obtaining debt financing. Potential continued disruptions in
11
the financial markets could also have other unknown adverse
effects on us or the economy generally and may cause the price
of our Common Shares to fluctuate significantly
and/or to
decline.
Potential
Reforms to Fannie Mae and Freddie Mac Could Adversely Affect Our
Performance
There is significant uncertainty surrounding the futures of
Fannie Mae and Freddie Mac. Should Fannie Mae and Freddie Mac
have their mandates changed or reduced, be disbanded or
reorganized by the government or otherwise discontinue providing
liquidity to our sector, it would significantly reduce our
access to debt capital
and/or
increase borrowing costs and would significantly reduce our
sales of assets and/or the values realized upon sale.
Disruptions in the floating rate tax-exempt bond market (where
interest rates reset weekly) and in the credit markets
perception of Fannie Mae and Freddie Mac, which guarantee and
provide liquidity for these bonds, have been experienced in the
past and may be experienced in the future and could result in an
increase in interest rates on these debt obligations. These
bonds could also be put to our consolidated subsidiaries if
Fannie Mae or Freddie Mac fail to satisfy their guaranty
obligations. While this obligation is in almost all cases
non-recourse to us, this could cause the Company to have to
repay these obligations on short notice or risk foreclosure
actions on the collateralized assets.
Non-Performance
by Our Financial Counterparties Could Adversely Affect Our
Performance
Although we have not experienced any material counterparty
non-performance, disruptions in financial and credit markets
could, among other things, impede the ability of our
counterparties to perform on their contractual obligations.
There are multiple financial institutions that are individually
committed to lend us varying amounts as part of our revolving
credit facility. Should any of these institutions fail to fund
their committed amounts when contractually required, our
financial condition could be adversely affected. Should several
of these institutions fail to fund, we could experience
significant financial distress. One of the financial
institutions, with a commitment of $75.0 million, declared
bankruptcy in 2008 and will not honor its financial commitment.
Our borrowing capacity under the credit facility has in essence
been permanently reduced to $1.425 billion.
The Company also has developed assets with joint venture
partners which were financed by financial institutions that have
experienced varying degrees of distress in the past and could
experience similar distress as economic conditions change. If
one or more of these lenders fail to fund when contractually
required, the Company or its joint venture partner may be unable
to complete construction of its development properties.
A
Significant Downgrade in Our Credit Ratings Could Adversely
Affect Our Performance
A significant downgrade in our credit ratings, while not
affecting our ability to draw proceeds under the revolving
credit facility, would cause our borrowing costs to increase
under the facility and impact our ability to borrow secured and
unsecured debt, or otherwise limit our access to capital. In
addition, a downgrade below investment grade would require us to
post cash collateral
and/or
letters of credit in favor of some of our secured lenders to
cover our self-insured property and liability insurance
deductibles or to obtain lower deductible insurance compliant
with the lenders requirements at the lower rating level.
Scheduled
Debt Payments Could Adversely Affect Our Financial
Condition
In the future, our cash flow could be insufficient to meet
required payments of principal and interest or to pay
distributions on our securities at expected levels.
We may not be able to refinance existing debt, including joint
venture indebtedness (which in virtually all cases requires
substantial principal payments at maturity) and, if we can, the
terms of such refinancing might not be as favorable as the terms
of existing indebtedness. If principal payments due at maturity
cannot be refinanced, extended or paid with proceeds of other
capital transactions, such as new equity capital, our operating
cash flow will not be sufficient in all years to repay all
maturing debt. As a result, certain of our other debt may cross
default, we may be forced to postpone capital expenditures
necessary for the maintenance of our properties, we may have to
dispose of one or more properties on terms that would otherwise
be unacceptable to us or we may be forced to allow the mortgage
holder to foreclose on a property. Foreclosure on mortgaged
properties or an inability to refinance existing indebtedness
would likely have a negative impact on our financial condition
and results of operations.
12
Please refer to Item 7, Managements Discussion and
Analysis of Financial Condition and Results of Operations,
for the Companys debt maturity schedule as of
December 31, 2010.
Financial
Covenants Could Adversely Affect the Companys Financial
Condition
The mortgages on our properties may contain customary negative
covenants that, among other things, limit our ability, without
the prior consent of the lender, to further mortgage the
property and to reduce or change insurance coverage. In
addition, our unsecured credit facilities contain certain
restrictions, requirements and other limitations on our ability
to incur debt. The indentures under which a substantial portion
of our unsecured debt was issued also contain certain financial
and operating covenants including, among other things,
maintenance of certain financial ratios, as well as limitations
on our ability to incur secured and unsecured debt (including
acquisition financing), and to sell all or substantially all of
our assets. Our credit facilities and indentures are
cross-defaulted and also contain cross default provisions with
other material debt. While the Company believes it was in
compliance with its unsecured public debt covenants for both the
years ended December 31, 2010 and 2009, should it fall out
of compliance, it would likely have a negative impact on our
financial condition and results of operations.
Some of the properties were financed with tax-exempt bonds that
contain certain restrictive covenants or deed restrictions. We
have retained an independent outside consultant to monitor
compliance with the restrictive covenants and deed restrictions
that affect these properties. If these bond compliance
requirements restrict our ability to increase our rental rates
to low or moderate-income residents, or eligible/qualified
residents, then our income from these properties may be limited.
While we generally believe that the interest rate benefit
attendant to properties with tax-exempt bonds more than
outweighs any loss of income due to restrictive covenants or
deed restrictions, this may not always be the case.
Our
Degree of Leverage Could Limit Our Ability to Obtain Additional
Financing
Our degree of leverage could have important consequences to
security holders. For example, the degree of leverage could
affect our ability to obtain additional financing in the future
for working capital, capital expenditures, acquisitions,
development or other general corporate purposes, making us more
vulnerable to a downturn in business or the economy in general.
Our consolidated
debt-to-total
market capitalization ratio was 38.4% as of December 31,
2010. In addition, our most restrictive unsecured public debt
covenants are as follows:
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December 31,
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December 31,
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2010
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2009
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Total Debt to Adjusted Total Assets (not to exceed 60%)
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48.5
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%
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48.8
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%
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Secured Debt to Adjusted Total Assets (not to exceed 40%)
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23.2
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%
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24.9
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%
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Consolidated Income Available for Debt Service to
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Maximum Annual Service Charges
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(must be at least 1.5 to 1)
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2.46
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2.44
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Total Unsecured Assets to Unsecured Debt
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(must be at least 150%)
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256.0
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%
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256.5
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%
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Rising
Interest Rates Could Adversely Affect Cash Flow
Advances under our credit facilities bear interest at variable
rates based upon LIBOR at various interest periods, plus a
spread dependent upon the Operating Partnerships credit
rating, or based upon bids received from the lending group.
Certain public issuances of our senior unsecured debt
instruments may also, from time to time, bear interest at
floating rates. We may also borrow additional money with
variable interest rates in the future. Increases in interest
rates would increase our interest expense under these debt
instruments and would increase the costs of refinancing existing
debt and of issuing new debt. Accordingly, higher interest rates
could adversely affect cash flow and our ability to service our
debt and make distributions to security holders.
Derivatives
and Hedging Activity Could Adversely Affect Cash Flow
In the normal course of business, we use derivatives to manage
our exposure to interest rate volatility on debt instruments,
including hedging for future debt issuances. At other times we
may utilize derivatives to increase our exposure to floating
interest rates. There can be no assurance that these hedging
arrangements will have the desired beneficial impact. These
arrangements, which can include a number of counterparties, may
expose us to additional risks, including failure of any of our
counterparties to
13
perform under these contracts, and may involve extensive costs,
such as transaction fees or breakage costs, if we terminate
them. No strategy can completely insulate us from the risks
associated with interest rate fluctuations.
We Depend
on Our Key Personnel
We depend on the efforts of the Chairman of our Board of
Trustees, Samuel Zell, and our executive officers, particularly
David J. Neithercut, our President and Chief Executive Officer
(CEO). If they resign or otherwise cease to be
employed by us, our operations could be temporarily adversely
affected. Mr. Zell has entered into retirement benefit and
noncompetition agreements with the Company.
Control
and Influence by Significant Shareholders Could Be Exercised in
a Manner Adverse to Other Shareholders
The consent of certain affiliates of Mr. Zell is required
for certain amendments to the Sixth Amended and Restated
Agreement of Limited Partnership of the Operating Partnership
(the Partnership Agreement). As a result of their
security ownership and rights concerning amendments to the
Partnership Agreement, the security holders referred to herein
may have influence over the Company. Although to the
Companys knowledge these security holders have not agreed
to act together on any matter, they would be in a position to
exercise even more influence over the Companys affairs if
they were to act together in the future. This influence could
conceivably be exercised in a manner that is inconsistent with
the interests of other security holders. For additional
information regarding the security ownership of our trustees,
including Mr. Zell, and our executive officers, see the
Companys definitive proxy statement.
Shareholders Ability to Effect Changes in Control of
the Company is Limited
Provisions
of Our Declaration of Trust and Bylaws Could Inhibit Changes in
Control
Certain provisions of our Declaration of Trust and Bylaws may
delay or prevent a change in control of the Company or other
transactions that could provide the security holders with a
premium over the then-prevailing market price of their
securities or which might otherwise be in the best interest of
our security holders. This includes the 5% Ownership Limit
described below. While our existing preferred shares do not have
these provisions, any future series of preferred shares may have
certain voting provisions that could delay or prevent a change
in control or other transactions that might otherwise be in the
interest of our security holders. Our Bylaws require certain
information to be provided by any security holder, or persons
acting in concert with such security holder, who proposes
business or a nominee at an annual meeting of shareholders,
including disclosure of information related to hedging
activities and investment strategies with respect to our
securities. These requirements could delay or prevent a change
in control or other transactions that might otherwise be in the
interest of our security holders.
We Have a
Share Ownership Limit for REIT Tax Purposes
To remain qualified as a REIT for federal income tax purposes,
not more than 50% in value of our outstanding Shares may be
owned, directly or indirectly, by five or fewer individuals at
any time during the last half of any year. To facilitate
maintenance of our REIT qualification, our Declaration of Trust,
subject to certain exceptions, prohibits ownership by any single
shareholder of more than 5% of the lesser of the number or value
of the outstanding class of common or preferred shares. We refer
to this restriction as the Ownership Limit. Absent
any exemption or waiver granted by our Board of Trustees,
securities acquired or held in violation of the Ownership Limit
will be transferred to a trust for the exclusive benefit of a
designated charitable beneficiary, and the security
holders rights to distributions and to vote would
terminate. A transfer of Shares may be void if it causes a
person to violate the Ownership Limit. The Ownership Limit could
delay or prevent a change in control and, therefore, could
adversely affect our security holders ability to realize a
premium over the then-prevailing market price for their Shares.
To reduce the ability of the Board to use the Ownership Limit as
an anti-takeover device, the Companys Ownership Limit
requires, rather than permits, the Board to grant a waiver of
the Ownership Limit if the individual seeking a waiver
demonstrates that such ownership would not jeopardize the
Companys status as a REIT.
Our
Preferred Shares May Affect Changes in Control
Our Declaration of Trust authorizes the Board of Trustees to
issue up to 100 million preferred shares, and to establish
the preferences and rights (including the right to vote and the
right to convert into common shares) of any preferred shares
issued. The Board of Trustees may use its powers to issue
preferred shares and to set the terms of such securities to
delay or prevent a change in control of the Company, even if a
change in control were in the interest of security holders.
14
Inapplicability
of Maryland Law Limiting Certain Changes in Control
Certain provisions of Maryland law applicable to real estate
investment trusts prohibit business combinations
(including certain issuances of equity securities) with any
person who beneficially owns ten percent or more of the voting
power of outstanding securities, or with an affiliate who, at
any time within the two-year period prior to the date in
question, was the beneficial owner of ten percent or more of the
voting power of the Companys outstanding voting securities
(an Interested Shareholder), or with an affiliate of
an Interested Shareholder. These prohibitions last for five
years after the most recent date on which the Interested
Shareholder became an Interested Shareholder. After the
five-year period, a business combination with an Interested
Shareholder must be approved by two super-majority shareholder
votes unless, among other conditions, holders of common shares
receive a minimum price for their shares and the consideration
is received in cash or in the same form as previously paid by
the Interested Shareholder for its common shares. As permitted
by Maryland law, however, the Board of Trustees of the Company
has opted out of these restrictions with respect to any business
combination involving Mr. Zell and certain of his
affiliates and persons acting in concert with them.
Consequently, the five-year prohibition and the super-majority
vote requirements will not apply to a business combination
involving us
and/or any
of them. Such business combinations may not be in the best
interest of our security holders.
Our Success as a REIT Is Dependent on Compliance with Federal
Income Tax Requirements
Our
Failure to Qualify as a REIT Would Have Serious Adverse
Consequences to Our Security Holders
We believe that we have qualified for taxation as a REIT for
federal income tax purposes since our taxable year ended
December 31, 1992 based, in part, upon opinions of tax
counsel received whenever we have issued equity securities or
engaged in significant merger transactions. We plan to continue
to meet the requirements for taxation as a REIT. Many of these
requirements, however, are highly technical and complex. We
cannot, therefore, guarantee that we have qualified or will
qualify in the future as a REIT. The determination that we are a
REIT requires an analysis of various factual matters that may
not be totally within our control. For example, to qualify as a
REIT, our gross income must generally come from rental and other
real estate or passive related sources that are itemized in the
REIT tax laws. We are also required to distribute to security
holders at least 90% of our REIT taxable income excluding
capital gains. The fact that we hold our assets through ERP
Operating Limited Partnership and its subsidiaries further
complicates the application of the REIT requirements. Even a
technical or inadvertent mistake could jeopardize our REIT
status. Furthermore, Congress and the IRS might make changes to
the tax laws and regulations, and the courts might issue new
rulings that make it more difficult, or impossible, for us to
remain qualified as a REIT. We do not believe, however, that any
pending or proposed tax law changes would jeopardize our REIT
status. In addition, Congress and the IRS have recently
liberalized the REIT qualification rules to permit REITs in
certain circumstances to pay a monetary penalty for inadvertent
mistakes rather than lose REIT status.
If we fail to qualify as a REIT, we would be subject to federal
income tax at regular corporate rates. Also, unless the IRS
granted us relief under certain statutory provisions, we would
remain disqualified from taxation as a REIT for four years
following the year in which we failed to qualify as a REIT. If
we fail to qualify as a REIT, we would have to pay significant
income taxes. We, therefore, would have less money available for
investments or for distributions to security holders. This would
likely have a significant adverse effect on the value of our
securities. In addition, we would no longer be required to make
any distributions to security holders. Even if we qualify as a
REIT, we are and will continue to be subject to certain federal,
state and local taxes on our income and property. In addition,
our corporate housing business, which is conducted through
taxable REIT subsidiaries, generally will be subject to federal
and state income tax at regular corporate rates to the extent
they have taxable income.
We Could
Be Disqualified as a REIT or Have to Pay Taxes if Our Merger
Partners Did Not Qualify as REITs
If any of our prior merger partners had failed to qualify as a
REIT throughout the duration of their existence, then they might
have had undistributed C corporation earnings and
profits at the time of their merger with us. If that was
the case and we did not distribute those earnings and profits
prior to the end of the year in which the merger took place, we
might not qualify as a REIT. We believe based, in part, upon
opinions of legal counsel received pursuant to the terms of our
merger agreements as well as our own investigations, among other
things, that each of our prior merger partners qualified as a
REIT and that, in any event, none of them had any undistributed
C corporation earnings and profits at the time of
their merger with us. If any of our prior merger partners failed
to qualify as a REIT, an additional concern would be that they
could have been required to recognize taxable gain at the time
they merged with us. We would be liable for the tax on such
gain. We also could have to pay corporate income tax on any gain
existing at the time of the applicable merger on assets acquired
in the merger if the assets are sold within ten years of the
merger.
15
Compliance with REIT Distribution Requirements May Affect Our
Financial Condition
Distribution
Requirements May Increase the Indebtedness of the
Company
We may be required from time to time, under certain
circumstances, to accrue as income for tax purposes interest and
rent earned but not yet received. In such event, or upon our
repayment of principal on debt, we could have taxable income
without sufficient cash to enable us to meet the distribution
requirements of a REIT. Accordingly, we could be required to
borrow funds or liquidate investments on adverse terms in order
to meet these distribution requirements.
Tax
Elections Regarding Distributions May Impact Future Liquidity of
the Company
During 2008 and 2009, we did make, and under certain
circumstances may consider making again in the future, a tax
election to treat future distributions to shareholders as
distributions in the current year. This election, which is
provided for in the REIT tax code, may allow us to avoid
increasing our dividends or paying additional income taxes in
the current year. However, this could result in a constraint on
our ability to decrease our dividends in future years without
creating risk of either violating the REIT distribution
requirements or generating additional income tax liability.
Federal
Income Tax Considerations
General
The following discussion summarizes the federal income tax
considerations material to a holder of common shares. It is not
exhaustive of all possible tax considerations. For example, it
does not give a detailed discussion of any state, local or
foreign tax considerations. The following discussion also does
not address all tax matters that may be relevant to prospective
shareholders in light of their particular circumstances.
Moreover, it does not address all tax matters that may be
relevant to shareholders who are subject to special treatment
under the tax laws, such as insurance companies, tax-exempt
entities, financial institutions or broker-dealers, foreign
corporations, persons who are not citizens or residents of the
United States and persons who own shares through a partnership
or other entity treated as a flow-through entity for federal
income tax purposes.
The specific tax attributes of a particular shareholder could
have a material impact on the tax considerations associated with
the purchase, ownership and disposition of common shares.
Therefore, it is essential that each prospective shareholder
consult with his or her own tax advisors with regard to the
application of the federal income tax laws to the
shareholders personal tax situation, as well as any tax
consequences arising under the laws of any state, local or
foreign taxing jurisdiction.
The information in this section is based on the current Internal
Revenue Code, current, temporary and proposed Treasury
regulations, the legislative history of the Internal Revenue
Code, current administrative interpretations and practices of
the Internal Revenue Service, including its practices and
policies as set forth in private letter rulings, which are not
binding on the Internal Revenue Service, and existing court
decisions. Future legislation, regulations, administrative
interpretations and court decisions could change current law or
adversely affect existing interpretations of current law. Any
change could apply retroactively. Thus, it is possible that the
Internal Revenue Service could challenge the statements in this
discussion, which do not bind the Internal Revenue Service or
the courts, and that a court could agree with the Internal
Revenue Service.
Our
Taxation
We elected REIT status beginning with the year that ended
December 31, 1992. In any year in which we qualify as a
REIT, we generally will not be subject to federal income tax on
the portion of our REIT taxable income or capital gain that we
distribute to our shareholders. This treatment substantially
eliminates the double taxation that applies to most
corporations, which pay a tax on their income and then
distribute dividends to shareholders who are in turn taxed on
the amount they receive. We elected taxable REIT subsidiary
status for certain of our corporate subsidiaries, primarily
those engaged in condominium conversion and sale activities. As
a result, we will be subject to federal income taxes for
activities performed by our taxable REIT subsidiaries.
We will be subject to federal income tax at regular corporate
rates upon our REIT taxable income or capital gains that we do
not distribute to our shareholders. In addition, we will be
subject to a 4% excise tax if we do not satisfy specific REIT
distribution requirements. We could also be subject to the
alternative minimum tax on our items of tax
preference. In addition, any net income from prohibited
transactions (i.e., dispositions of property, other than
property held by a taxable REIT subsidiary, held primarily for
sale to customers in the ordinary course of business) will be
subject to a 100% tax. We could also be
16
subject to a 100% penalty tax on certain payments received from
or on certain expenses deducted by a taxable REIT subsidiary if
any such transaction is not respected by the Internal Revenue
Service. If we fail to satisfy the 75% gross income test or the
95% gross income test (described below) but have maintained our
qualification as a REIT because we satisfied certain other
requirements, we will still generally be subject to a 100%
penalty tax on the taxable income attributable to the gross
income that caused the income test failure. If we fail to
satisfy any of the REIT asset tests (described below) by more
than a de minimis amount, due to reasonable cause, and we
nonetheless maintain our REIT qualification because of specified
cure provisions, we will be required to pay a tax equal to the
greater of $50,000 or the highest marginal corporate tax rate
multiplied by the net income generated by the non-qualifying
assets. If we fail to satisfy any provision of the Internal
Revenue Code that would result in our failure to qualify as a
REIT (other than a violation of the REIT gross income or asset
tests described below) and the violation is due to reasonable
cause, we may retain our REIT qualification but we will be
required to pay a penalty of $50,000 for each such failure.
Moreover, we may be subject to taxes in certain situations and
on certain transactions that we do not presently contemplate.
We believe that we have qualified as a REIT for all of our
taxable years beginning with 1992. We also believe that our
current structure and method of operation is such that we will
continue to qualify as a REIT. However, given the complexity of
the REIT qualification requirements, we cannot provide any
assurance that the actual results of our operations have
satisfied or will satisfy the requirements under the Internal
Revenue Code for a particular year.
If we fail to qualify for taxation as a REIT in any taxable year
and the relief provisions described herein do not apply, we will
be subject to tax on our taxable income at regular corporate
rates. We also may be subject to the corporate alternative
minimum tax. As a result, our failure to qualify as a REIT
would significantly reduce the cash we have available to
distribute to our shareholders. Unless entitled to statutory
relief, we would not be able to re-elect to be taxed as a REIT
until our fifth taxable year after the year of disqualification.
It is not possible to state whether we would be entitled to
statutory relief.
Our qualification and taxation as a REIT depend on our ability
to satisfy various requirements under the Internal Revenue Code.
We are required to satisfy these requirements on a continuing
basis through actual annual operating and other results.
Accordingly, there can be no assurance that we will be able to
continue to operate in a manner so as to remain qualified as a
REIT.
Ownership of Taxable REIT Subsidiaries by Us. The
Internal Revenue Code provides that REITs may own greater than
ten percent of the voting power and value of the securities of a
taxable REIT subsidiary or TRS, provided
that the aggregate value of all of the TRS securities held by
the REIT does not exceed 25% of the REITs total asset
value. TRSs are corporations subject to tax as a regular
C corporation that have elected, jointly with a
REIT, to be a TRS. Generally, a taxable REIT subsidiary may own
assets that cannot otherwise be owned by a REIT and can perform
impermissible tenant services (discussed below), which would
otherwise taint our rental income under the REIT income tests.
However, the REIT will be obligated to pay a 100% penalty tax on
some payments that we receive or on certain expenses deducted by
our TRSs if the economic arrangements between us, our tenants
and the TRS are not comparable to similar arrangements among
unrelated parties. A TRS may also receive income from prohibited
transactions without incurring the 100% federal income tax
liability imposed on REITs. Income from prohibited transactions
may include the purchase and sale of land, the purchase and sale
of completed development properties and the sale of condominium
units.
TRSs pay federal and state income tax at the full applicable
corporate rates. The amount of taxes paid on impermissible
tenant services income and the sale of real estate held
primarily for sale to customers in the ordinary course of
business may be material in amount. The TRSs will attempt to
reduce, if possible, the amount of these taxes, but we cannot
guarantee whether, or the extent to which, measures taken to
reduce these taxes will be successful. To the extent that these
companies are required to pay taxes, less cash may be available
for distributions to shareholders.
Share Ownership Test and Organizational
Requirement. In order to qualify as a REIT, our shares
of beneficial interest must be held by a minimum of
100 persons for at least 335 days of a taxable year
that is 12 months, or during a proportionate part of a
taxable year of less than 12 months. Also, not more than
50% in value of our shares of beneficial interest may be owned
directly or indirectly by applying certain constructive
ownership rules, by five or fewer individuals during the last
half of each taxable year. In addition, we must meet certain
other organizational requirements, including, but not limited
to, that (i) the beneficial ownership in us is evidenced by
transferable shares and (ii) we are managed by one or more
trustees. We believe that we have satisfied all of these tests
and all other organizational requirements and that we will
continue to do so in the future. In order to ensure compliance
with the 100 person test and the 50% share ownership test
discussed above, we have placed certain restrictions on the
transfer of our shares that are intended to prevent further
concentration of share ownership. However, such restrictions may
not prevent us from failing these requirements, and thereby
failing to qualify as a REIT.
17
Gross Income Tests. To qualify as a REIT, we must
satisfy two gross income tests:
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(1)
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At least 75% of our gross income for each taxable year must be
derived directly or indirectly from rents from real property,
investments in real estate
and/or real
estate mortgages, dividends paid by another REIT and from some
types of temporary investments (excluding certain hedging
income).
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(2)
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At least 95% of our gross income for each taxable year must be
derived from any combination of income qualifying under the 75%
test and dividends, non-real estate mortgage interest and gain
from the sale or disposition of stock or securities (excluding
certain hedging income).
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To qualify as rents from real property for the purpose of
satisfying the gross income tests, rental payments must
generally be received from unrelated persons and not be based on
the net income of the resident. Also, the rent attributable to
personal property must not exceed 15% of the total rent. We may
generally provide services to residents without
tainting our rental income only if such services are
usually or customarily rendered in connection with
the rental of real property and not otherwise considered
impermissible services. If such services are
impermissible, then we may generally provide them only if they
are considered de minimis in amount, or are provided through an
independent contractor from whom we derive no revenue and that
meets other requirements, or through a taxable REIT subsidiary.
We believe that services provided to residents by us either are
usually or customarily rendered in connection with the rental of
real property and not otherwise considered impermissible, or, if
considered impermissible services, will meet the de minimis
test or will be provided by an independent contractor or
taxable REIT subsidiary. However, we cannot provide any
assurance that the Internal Revenue Service will agree with
these positions.
If we fail to satisfy one or both of the gross income tests for
any taxable year, we may nevertheless qualify as a REIT for the
year if we are entitled to relief under certain provisions of
the Internal Revenue Code. In this case, a penalty tax would
still be applicable as discussed above. Generally, it is not
possible to state whether in all circumstances we would be
entitled to the benefit of these relief provisions and in the
event these relief provisions do not apply, we will not qualify
as a REIT.
Asset Tests. In general, at the close of each
quarter of our taxable year, we must satisfy four tests relating
to the nature of our assets:
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(1)
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At least 75% of the value of our total assets must be
represented by real estate assets (which include for this
purpose shares in other real estate investment trusts) and
certain cash related items;
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(2)
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Not more than 25% of the value of our total assets may be
represented by securities other than those in the 75% asset
class;
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(3)
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Except for securities included in item 1 above, equity
investments in other REITs, qualified REIT subsidiaries (i.e.,
corporations owned 100% by a REIT that are not TRSs or REITs),
or taxable REIT subsidiaries: (a) the value of any one
issuers securities owned by us may not exceed 5% of the
value of our total assets and (b) we may not own securities
representing more than 10% of the voting power or value of the
outstanding securities of any one issuer; and
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(4)
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Not more than 25% of the value of our total assets may be
represented by securities of one or more taxable REIT
subsidiaries.
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The 10% value test described in clause (3) (b) above does
not apply to certain securities that fall within a safe harbor
under the Code. Under the safe harbor, the following are not
considered securities held by us for purposes of
this 10% value test: (i) straight debt securities,
(ii) any loan of an individual or an estate,
(iii) certain rental agreements for the use of tangible
property, (iv) any obligation to pay rents from real
property, (v) any security issued by a state or any
political subdivision thereof, foreign government or Puerto Rico
only if the determination of any payment under such security is
not based on the profits of another entity or payments on any
obligation issued by such other entity, or (vi) any
security issued by a REIT. The timing and payment of interest or
principal on a security qualifying as straight debt may be
subject to a contingency provided that (A) such contingency
does not change the effective yield to maturity, not considering
a de minimis change which does not exceed the greater of
1/4 of 1% or 5% of the annual yield to maturity or we own
$1,000,000 or less of the aggregate issue price or value of the
particular issuers debt and not more than 12 months
of unaccrued interest can be required to be prepaid or
(B) the contingency is consistent with commercial practice
and the contingency is effective upon a default or the exercise
of a prepayment right by the issuer of the debt. If we hold
indebtedness from any issuer, including a REIT, the indebtedness
will be subject to, and may cause a violation of, the asset
tests, unless it is a qualifying real estate asset or otherwise
satisfies the above safe harbor. We currently own equity
interests in certain entities that have elected to be taxed as
REITs for federal income tax purposes and are not publicly
traded. If any such entity were to fail to qualify as a REIT, we
would not meet the 10% voting stock limitation and the 10% value
limitation and we would, unless certain relief provisions
applied, fail to qualify as a REIT. We believe that we and each
of the
18
REITs we own an interest in have and will comply with the
foregoing asset tests for REIT qualification. However, we cannot
provide any assurance that the Internal Revenue Service will
agree with our determinations.
If we fail to satisfy the 5% or 10% asset tests described above
after a
30-day cure
period provided in the Internal Revenue Code, we will be deemed
to have met such tests if the value of our non-qualifying assets
is de minimis (i.e., does not exceed the lesser of 1% of
the total value of our assets at the end of the applicable
quarter or $10,000,000) and we dispose of the non-qualifying
assets within six months after the last day of the quarter in
which the failure to satisfy the asset tests is discovered. For
violations due to reasonable cause and not willful neglect that
are in excess of the de minimis exception described
above, we may avoid disqualification as a REIT under any of the
asset tests, after the
30-day cure
period, by disposing of sufficient assets to meet the asset test
within such six month period, paying a tax equal to the greater
of $50,000 or the highest corporate tax rate multiplied by the
net income generated by the non-qualifying assets and disclosing
certain information to the Internal Revenue Service. If we
cannot avail ourselves of these relief provisions, or if we fail
to timely cure any noncompliance with the asset tests, we would
cease to qualify as a REIT.
Annual Distribution Requirements. To qualify as a
REIT, we are generally required to distribute dividends, other
than capital gain dividends, to our shareholders each year in an
amount at least equal to 90% of our REIT taxable income. These
distributions must be paid either in the taxable year to which
they relate, or in the following taxable year if declared before
we timely file our tax return for the prior year and if paid
with or before the first regular dividend payment date after the
declaration is made. We intend to make timely distributions
sufficient to satisfy our annual distribution requirements. To
the extent that we do not distribute all of our net capital gain
or distribute at least 90%, but less than 100% of our REIT
taxable income, as adjusted, we are subject to tax on these
amounts at regular corporate rates. We will be subject to a 4%
excise tax on the excess of the required distribution over the
sum of amounts actually distributed and amounts retained for
which federal income tax was paid, if we fail to distribute
during each calendar year at least the sum of: (1) 85% of
our REIT ordinary income for the year; (2) 95% of our REIT
capital gain net income for the year; and (3) any
undistributed taxable income from prior taxable years. A REIT
may elect to retain rather than distribute all or a portion of
its net capital gains and pay the tax on the gains. In that
case, a REIT may elect to have its shareholders include their
proportionate share of the undistributed net capital gains in
income as long-term capital gains and receive a credit for their
share of the tax paid by the REIT. For purposes of the 4% excise
tax described above, any retained amounts would be treated as
having been distributed.
Ownership of Partnership Interests By Us. As a
result of our ownership of the Operating Partnership, we will be
considered to own and derive our proportionate share of the
assets and items of income of the Operating Partnership,
respectively, for purposes of the REIT asset and income tests,
including its share of assets and items of income of any
subsidiaries that are partnerships or limited liability
companies.
State and Local Taxes. We may be subject to state or
local taxation in various jurisdictions, including those in
which we transact business or reside. Generally REITs have seen
increases in state and local taxes in recent years. Our state
and local tax treatment may not conform to the federal income
tax treatment discussed above. Consequently, prospective
shareholders should consult their own tax advisors regarding the
effect of state and local tax laws on an investment in common
shares.
Taxation
of Domestic Shareholders Subject to U.S. Tax
General. If we qualify as a REIT, distributions made
to our taxable domestic shareholders with respect to their
common shares, other than capital gain distributions and
distributions attributable to taxable REIT subsidiaries, will be
treated as ordinary income to the extent that the distributions
come out of earnings and profits. These distributions will not
be eligible for the dividends received deduction for
shareholders that are corporations nor will they constitute
qualified dividend income under the Internal Revenue
Code, meaning that such dividends will be taxed at marginal
rates applicable to ordinary income rather than the special
capital gain rates currently applicable to qualified dividend
income distributed to shareholders who satisfy applicable
holding period requirements. In determining whether
distributions are out of earnings and profits, we will allocate
our earnings and profits first to preferred shares and second to
the common shares. The portion of ordinary dividends which
represent ordinary dividends we receive from a TRS, will be
designated as qualified dividend income to REIT
shareholders. For tax years ending on or before
December 31, 2012, these qualified dividends are eligible
for preferential tax rates if paid to our non-corporate
shareholders.
To the extent we make distributions to our taxable domestic
shareholders in excess of our earnings and profits, such
distributions will be considered a return of capital. Such
distributions will be treated as a tax-free distribution and
will reduce the tax basis of a shareholders common shares
by the amount of the distribution so treated. To the extent such
distributions
19
cumulatively exceed a taxable domestic shareholders tax
basis, such distributions are taxable as gain from the sale of
shares. Shareholders may not include in their individual income
tax returns any of our net operating losses or capital losses.
Dividends declared by a REIT in October, November, or December
are deemed to have been paid by the REIT and received by its
shareholders on December 31 of that year, so long as the
dividends are actually paid during January of the following
year. However, this treatment only applies to the extent of the
REITs earnings and profits existing on December 31.
To the extent the shareholder distribution paid in January
exceeds available earnings and profits as of December 31,
the excess will be treated as a distribution taxable to
shareholders in the year paid. As such, for tax reporting
purposes, January distributions paid to our shareholders may be
split between two tax years.
Distributions made by us that we properly designate as capital
gain dividends will be taxable to taxable domestic shareholders
as gain from the sale or exchange of a capital asset held for
more than one year. This treatment applies only to the extent
that the designated distributions do not exceed our actual net
capital gain for the taxable year. It applies regardless of the
period for which a domestic shareholder has held his or her
common shares. Despite this general rule, corporate shareholders
may be required to treat up to 20% of certain capital gain
dividends as ordinary income.
Generally, we will classify a portion of our designated capital
gain dividends as a 15% rate gain distribution and the remaining
portion as an unrecaptured Section 1250 gain distribution.
A 15% rate gain distribution would be taxable to taxable
domestic shareholders that are individuals, estates or trusts at
a maximum rate of 15% (which 15% rate is currently scheduled to
increase to 20% for taxable years beginning on and after
January 1, 2013). An unrecaptured Section 1250 gain
distribution would be taxable to taxable domestic shareholders
that are individuals, estates or trusts at a maximum rate of 25%.
If, for any taxable year, we elect to designate as capital gain
dividends any portion of the dividends paid or made available
for the year to holders of all classes of shares of beneficial
interest, then the portion of the capital gains dividends that
will be allocable to the holders of common shares will be the
total capital gain dividends multiplied by a fraction. The
numerator of the fraction will be the total dividends paid or
made available to the holders of the common shares for the year.
The denominator of the fraction will be the total dividends paid
or made available to holders of all classes of shares of
beneficial interest.
We may elect to retain (rather than distribute as is generally
required) net capital gain for a taxable year and pay the income
tax on that gain. If we make this election, shareholders must
include in income, as long-term capital gain, their
proportionate share of the undistributed net capital gain.
Shareholders will be treated as having paid their proportionate
share of the tax paid by us on these gains. Accordingly, they
will receive a tax credit or refund for the amount. Shareholders
will increase the basis in their common shares by the difference
between the amount of capital gain included in their income and
the amount of the tax they are treated as having paid. Our
earnings and profits will be adjusted appropriately.
In general, a shareholder will recognize gain or loss for
federal income tax purposes on the sale or other disposition of
common shares in an amount equal to the difference between:
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(a)
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the amount of cash and the fair market value of any property
received in the sale or other disposition; and
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(b)
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the shareholders adjusted tax basis in the common shares.
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The gain or loss will be capital gain or loss if the common
shares were held as a capital asset. Generally, the capital gain
or loss will be long-term capital gain or loss if the common
shares were held for more than one year.
In general, a loss recognized by a shareholder upon the sale of
common shares that were held for six months or less, determined
after applying certain holding period rules, will be treated as
long-term capital loss to the extent that the shareholder
received distributions that were treated as long-term capital
gains. For shareholders who are individuals, trusts and estates,
the long-term capital loss will be apportioned among the
applicable long-term capital gain rates to the extent that
distributions received by the shareholder were previously so
treated.
Taxation
of Domestic Tax-Exempt Shareholders
Most tax-exempt organizations are not subject to federal income
tax except to the extent of their unrelated business taxable
income, which is often referred to as UBTI. Unless a tax-exempt
shareholder holds its common shares as debt financed property or
uses the common shares in an unrelated trade or business,
distributions to the shareholder should not constitute UBTI.
Similarly, if a tax-exempt shareholder sells common shares, the
income from the sale should not constitute UBTI unless the
shareholder held the shares as debt financed property or used
the shares in a trade or business.
20
However, for tax-exempt shareholders that are social clubs,
voluntary employee benefit associations, supplemental
unemployment benefit trusts, and qualified group legal services
plans, income from owning or selling common shares will
constitute UBTI unless the organization is able to properly
deduct amounts set aside or placed in reserve so as to offset
the income generated by its investment in common shares. These
shareholders should consult their own tax advisors concerning
these set aside and reserve requirements which are set forth in
the Internal Revenue Code.
In addition, certain pension trusts that own more than 10% of a
pension-held REIT must report a portion of the
distributions that they receive from the REIT as UBTI. We have
not been and do not expect to be treated as a pension-held REIT
for purposes of this rule.
Taxation
of Foreign Shareholders
The following is a discussion of certain anticipated United
States federal income tax consequences of the ownership and
disposition of common shares applicable to a foreign
shareholder. For purposes of this discussion, a foreign
shareholder is any person other than:
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(a)
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a citizen or resident of the United States;
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(b)
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a corporation or partnership created or organized in the United
States or under the laws of the United States or of any state
thereof; or
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(c)
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an estate or trust whose income is includable in gross income
for United States federal income tax purposes regardless of its
source.
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Distributions by Us. Distributions by us to a
foreign shareholder that are neither attributable to gain from
sales or exchanges by us of United States real property
interests nor designated by us as capital gains dividends will
be treated as dividends of ordinary income to the extent that
they are made out of our earnings and profits. These
distributions ordinarily will be subject to withholding of
United States federal income tax on a gross basis at a 30% rate,
or a lower treaty rate, unless the dividends are treated as
effectively connected with the conduct by the foreign
shareholder of a United States trade or business. Please note
that under certain treaties lower withholding rates generally
applicable to dividends do not apply to dividends from REITs.
Dividends that are effectively connected with a United States
trade or business will be subject to tax on a net basis at
graduated rates, and are generally not subject to withholding.
Certification and disclosure requirements must be satisfied
before a dividend is exempt from withholding under this
exemption. A foreign shareholder that is a corporation also may
be subject to an additional branch profits tax at a 30% rate or
a lower treaty rate.
We expect to withhold United States income tax at the rate of
30% on any such distributions made to a foreign shareholder
unless:
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(a)
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a lower treaty rate applies and any required form or
certification evidencing eligibility for that reduced rate is
filed with us; or
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(b)
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the foreign shareholder files an IRS
Form W-8ECI
with us claiming that the distribution is effectively connected
income.
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If such distribution is in excess of our current or accumulated
earnings and profits, it will not be taxable to a foreign
shareholder to the extent that the distribution does not exceed
the adjusted basis of the shareholders common shares.
Instead, the distribution will reduce the adjusted basis of the
common shares. To the extent that the distribution exceeds the
adjusted basis of the common shares, it will give rise to gain
from the sale or exchange of the shareholders common
shares. The tax treatment of this gain is described below.
We intend to withhold at a rate of 30%, or a lower applicable
treaty rate, on the entire amount of any distribution not
designated as a capital gain distribution. In such event, a
foreign shareholder may seek a refund of the withheld amount
from the IRS if it is subsequently determined that the
distribution was, in fact, in excess of our earnings and
profits, and the amount withheld exceeded the foreign
shareholders United States tax liability with respect to
the distribution.
Any capital gain dividend with respect to any class of our stock
which is regularly traded on an established
securities market, will be treated as an ordinary dividend
described above, if the foreign shareholder did not own more
than 5% of such class of stock at any time during the one year
period ending on the date of the distribution. Foreign
shareholders generally will not be required to report such
distributions received from us on U.S. federal income tax
returns and all distributions treated as
21
dividends for U.S. federal income tax purposes, including
any capital gain dividends, will be subject to a 30%
U.S. withholding tax (unless reduced or eliminated under an
applicable income tax treaty), as described above. In addition,
the branch profits tax will no longer apply to such
distributions.
Distributions to a foreign shareholder that we designate at the
time of the distributions as capital gain dividends, other than
those arising from the disposition of a United States real
property interest, generally will not be subject to United
States federal income taxation unless:
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(a)
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the investment in the common shares is effectively connected
with the foreign shareholders United States trade or
business, in which case the foreign shareholder will be subject
to the same treatment as domestic shareholders, except that a
shareholder that is a foreign corporation may also be subject to
the branch profits tax, as discussed above; or
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(b)
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the foreign shareholder is a nonresident alien individual who is
present in the United States for 183 days or more during
the taxable year and has a tax home in the United
States, in which case the nonresident alien individual will be
subject to a 30% tax on the individuals capital gains.
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Under the Foreign Investment in Real Property Tax Act, which is
known as FIRPTA, distributions to a foreign shareholder that are
attributable to gain from sales or exchanges of United States
real property interests will cause the foreign shareholder to be
treated as recognizing the gain as income effectively connected
with a United States trade or business. This rule applies
whether or not a distribution is designated as a capital gain
dividend. Accordingly, foreign shareholders generally would be
taxed on these distributions at the same rates applicable to
U.S. shareholders, subject to a special alternative minimum
tax in the case of nonresident alien individuals. In addition, a
foreign corporate shareholder might be subject to the branch
profits tax discussed above, as well as U.S. federal income
tax return filing requirements. We are required to withhold 35%
of these distributions. The withheld amount can be credited
against the foreign shareholders United States federal
income tax liability.
Although the law is not entirely clear on the matter, it appears
that amounts we designate as undistributed capital gains in
respect of the common shares held by U.S. shareholders
would be treated with respect to foreign shareholders in the
same manner as actual distributions of capital gain dividends.
Under that approach, foreign shareholders would be able to
offset as a credit against their United States federal income
tax liability their proportionate share of the tax paid by us on
these undistributed capital gains. In addition, if timely
requested, foreign shareholders might be able to receive from
the IRS a refund to the extent their proportionate share of the
tax paid by us were to exceed their actual United States federal
income tax liability.
Foreign Shareholders Sales of Common
Shares. Gain recognized by a foreign shareholder upon
the sale or exchange of common shares generally will not be
subject to United States taxation unless the shares constitute a
United States real property interest within the
meaning of FIRPTA. The common shares will not constitute a
United States real property interest so long as we are a
domestically controlled REIT. A domestically controlled REIT is
a REIT in which at all times during a specified testing period
less than 50% in value of its stock is held directly or
indirectly by foreign shareholders. We believe that we are a
domestically controlled REIT. Therefore, we believe that the
sale of common shares will not be subject to taxation under
FIRPTA. However, because common shares and preferred shares are
publicly traded, we cannot guarantee that we will continue to be
a domestically controlled REIT. In any event, gain from the sale
or exchange of common shares not otherwise subject to FIRPTA
will be subject to U.S. tax, if either:
|
|
|
|
(a)
|
the investment in the common shares is effectively connected
with the foreign shareholders United States trade or
business, in which case the foreign shareholder will be subject
to the same treatment as domestic shareholders with respect to
the gain; or
|
|
|
|
|
(b)
|
the foreign shareholder is a nonresident alien individual who is
present in the United States for 183 days or more during
the taxable year and has a tax home in the United States, in
which case the nonresident alien individual will be subject to a
30% tax on the individuals capital gains.
|
Even if we do not qualify as or cease to be a domestically
controlled REIT, gain arising from the sale or exchange by a
foreign shareholder of common shares still would not be subject
to United States taxation under FIRPTA as a sale of a
United States real property interest if:
|
|
|
|
(a)
|
the class or series of shares being sold is regularly
traded, as defined by applicable IRS regulations, on an
established securities market such as the New York Stock
Exchange; and
|
|
|
|
|
(b)
|
the selling foreign shareholder owned 5% or less of the value of
the outstanding class or series of shares being sold throughout
the five-year period ending on the date of the sale or exchange.
|
22
If gain on the sale or exchange of common shares were subject to
taxation under FIRPTA, the foreign shareholder would be subject
to regular United States income tax with respect to the gain in
the same manner as a taxable U.S. shareholder, subject to
any applicable alternative minimum tax, a special alternative
minimum tax in the case of nonresident alien individuals and the
possible application of the branch profits tax in the case of
foreign corporations. The purchaser of the common shares would
be required to withhold and remit to the IRS 10% of the purchase
price.
Information
Reporting Requirement and Backup Withholding
We will report to our domestic shareholders and the Internal
Revenue Service the amount of distributions paid during each
calendar year and the amount of tax withheld, if any. Under
certain circumstances, domestic shareholders may be subject to
backup withholding. Backup withholding will apply only if such
domestic shareholder fails to furnish certain information to us
or the Internal Revenue Service. Backup withholding will not
apply with respect to payments made to certain exempt
recipients, such as corporations and tax-exempt organizations.
Domestic shareholders should consult their own tax advisors
regarding their qualification for exemption from backup
withholding and the procedure for obtaining such an exemption.
Backup withholding is not an additional tax. Rather, the amount
of any backup withholding with respect to a payment to a
domestic shareholder will be allowed as a credit against such
persons United States federal income tax liability and may
entitle such person to a refund, provided that the required
information is timely furnished to the Internal Revenue Service.
Medicare
Tax on Unearned Income
Newly enacted legislation requires certain
U.S. shareholders that are taxed as individuals, estates or
trusts to pay an additional 3.8% tax on, among other things,
dividends on and capital gains from the sale or other
disposition of shares for taxable years beginning after
December 31, 2012.
Withholding
on Foreign Financial Institutions and
Non-U.S.
Shareholders
Newly enacted legislation may impose withholding taxes on
certain types of payments made to foreign financial
institutions and certain other
non-U.S. shareholders.
Under this legislation, the failure to comply with additional
certification, information reporting and other specified
requirements could result in withholding tax being imposed on
payments of dividends and sales proceeds to
U.S. shareholders that own their shares through foreign
accounts or foreign intermediaries and certain
non-U.S. shareholders.
The legislation imposes a 30% withholding tax on dividends on,
and gross proceeds from the sale or other disposition of, our
shares paid to a foreign financial institution or to a foreign
non-financial entity, unless (i) the foreign financial
institution undertakes certain diligence and reporting
obligations or (ii) the foreign non-financial entity either
certifies it does not have any substantial U.S. owners or
furnishes identifying information regarding each substantial
U.S. owner. In addition, if the payee is a foreign
financial institution, it generally must enter into an agreement
with the U.S. Treasury that requires, among other things,
that it undertake to identify accounts held by certain
U.S. persons or
U.S.-owned
foreign entities, annually report certain information about such
accounts and withhold 30% on payments to certain other account
holders. The legislation applies to payments made after
December 31, 2012.
23
|
|
Item 1B.
|
Unresolved
Staff Comments
|
None.
As of December 31, 2010, the Company, directly or
indirectly through investments in title holding entities, owned
all or a portion of 451 properties located in 17 states and
the District of Columbia consisting of 129,604 apartment units.
The Companys properties are summarized by building type in
the following table:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
Type
|
|
Properties
|
|
|
Apartment Units
|
|
|
Apartment Units
|
|
|
Garden
|
|
|
354
|
|
|
|
100,551
|
|
|
|
284
|
|
Mid/High-Rise
|
|
|
95
|
|
|
|
24,315
|
|
|
|
256
|
|
Military Housing
|
|
|
2
|
|
|
|
4,738
|
|
|
|
2,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
451
|
|
|
|
129,604
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Companys properties are summarized by ownership type
in the following table:
|
|
|
|
|
|
|
|
|
|
|
Properties
|
|
|
Apartment Units
|
|
|
Wholly Owned Properties
|
|
|
425
|
|
|
|
119,634
|
|
Partially Owned Properties Consolidated
|
|
|
24
|
|
|
|
5,232
|
|
Military Housing
|
|
|
2
|
|
|
|
4,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
451
|
|
|
|
129,604
|
|
|
|
|
|
|
|
|
|
|
The following table sets forth certain information by market
relating to the Companys properties at December 31,
2010:
24
PORTFOLIO
SUMMARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of
|
|
|
Average
|
|
|
|
|
|
|
|
|
|
|
|
% of Total
|
|
|
Stabilized
|
|
|
Rental
|
|
|
|
Markets
|
|
Properties
|
|
|
Apartment Units
|
|
|
Apartment Units
|
|
|
NOI
|
|
|
Rate (1)
|
|
|
1
|
|
New York Metro Area
|
|
|
28
|
|
|
|
8,290
|
|
|
|
6.4
|
%
|
|
|
12.7
|
%
|
|
$
|
2,843
|
|
2
|
|
DC Northern Virginia
|
|
|
31
|
|
|
|
10,393
|
|
|
|
8.0
|
%
|
|
|
12.1
|
%
|
|
|
1,869
|
|
3
|
|
South Florida
|
|
|
38
|
|
|
|
12,869
|
|
|
|
9.9
|
%
|
|
|
9.1
|
%
|
|
|
1,313
|
|
4
|
|
Los Angeles
|
|
|
39
|
|
|
|
8,311
|
|
|
|
6.4
|
%
|
|
|
8.1
|
%
|
|
|
1,717
|
|
5
|
|
Boston
|
|
|
28
|
|
|
|
5,711
|
|
|
|
4.4
|
%
|
|
|
7.1
|
%
|
|
|
2,204
|
|
6
|
|
Seattle/Tacoma
|
|
|
43
|
|
|
|
9,748
|
|
|
|
7.5
|
%
|
|
|
6.7
|
%
|
|
|
1,293
|
|
7
|
|
San Francisco Bay Area
|
|
|
35
|
|
|
|
6,606
|
|
|
|
5.1
|
%
|
|
|
6.0
|
%
|
|
|
1,683
|
|
8
|
|
San Diego
|
|
|
14
|
|
|
|
4,963
|
|
|
|
3.8
|
%
|
|
|
5.2
|
%
|
|
|
1,789
|
|
9
|
|
Phoenix
|
|
|
36
|
|
|
|
10,769
|
|
|
|
8.3
|
%
|
|
|
4.8
|
%
|
|
|
848
|
|
10
|
|
Denver
|
|
|
23
|
|
|
|
7,967
|
|
|
|
6.2
|
%
|
|
|
4.7
|
%
|
|
|
1,044
|
|
11
|
|
Suburban Maryland
|
|
|
21
|
|
|
|
5,782
|
|
|
|
4.5
|
%
|
|
|
4.5
|
%
|
|
|
1,346
|
|
12
|
|
Orlando
|
|
|
26
|
|
|
|
8,042
|
|
|
|
6.2
|
%
|
|
|
4.2
|
%
|
|
|
961
|
|
13
|
|
Orange County, CA
|
|
|
11
|
|
|
|
3,490
|
|
|
|
2.7
|
%
|
|
|
3.2
|
%
|
|
|
1,518
|
|
14
|
|
Atlanta
|
|
|
20
|
|
|
|
6,183
|
|
|
|
4.8
|
%
|
|
|
3.0
|
%
|
|
|
961
|
|
15
|
|
Inland Empire, CA
|
|
|
11
|
|
|
|
3,639
|
|
|
|
2.8
|
%
|
|
|
2.8
|
%
|
|
|
1,352
|
|
16
|
|
All Other Markets(2)
|
|
|
45
|
|
|
|
12,103
|
|
|
|
9.3
|
%
|
|
|
5.8
|
%
|
|
|
975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
449
|
|
|
|
124,866
|
|
|
|
96.3
|
%
|
|
|
100.0
|
%
|
|
|
1,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Military Housing
|
|
|
2
|
|
|
|
4,738
|
|
|
|
3.7
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand Total
|
|
|
451
|
|
|
|
129,604
|
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
$
|
1,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Average rental rate is defined as
total rental revenues divided by the weighted average occupied
apartment units for the month of December 2010.
|
(2)
|
|
All Other Markets Each
individual market is less than 2.0% of stabilized NOI.
|
Note: Projects under development are not included in the
Portfolio Summary until construction has been completed, at
which time the projects are included at their stabilized NOI.
Projects under
lease-up are
included at their stabilized NOI.
The Companys properties had an average occupancy of
approximately 94.1% (94.5% on a same store basis) at
December 31, 2010. Certain of the Companys properties
are encumbered by mortgages and additional detail can be found
on Schedule III Real Estate and Accumulated
Depreciation. Resident leases are generally for twelve months in
length and can require security deposits. The garden-style
properties are generally defined as properties with two
and/or three
story buildings while the mid-rise/high-rise are defined as
properties with greater than three story buildings. These two
property types typically provide residents with amenities, which
may include a clubhouse, swimming pool, laundry facilities and
cable television access. Certain of these properties offer
additional amenities such as saunas, whirlpools, spas, sports
courts and exercise rooms or other amenities. In addition, many
of our urban properties have parking garage
and/or
retail components. The military housing properties are defined
as those properties located on military bases.
The distribution of the properties throughout the United States
reflects the Companys belief that geographic
diversification helps insulate the portfolio from regional and
economic influences. At the same time, the Company has sought to
create clusters of properties within each of its primary markets
in order to achieve economies of scale in management and
operation. The Company may nevertheless acquire additional
multifamily properties located anywhere in the United States.
The properties currently in various stages of development and
lease-up at
December 31, 2010 are included in the following table:
25
Consolidated
Development and
Lease-Up
Projects as of December 31, 2010
(Amounts in thousands except for project and apartment unit
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Book
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
No. of
|
|
|
Total
|
|
|
Total
|
|
|
Value Not
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated
|
|
|
Estimated
|
|
|
|
|
|
|
|
|
|
Apartment
|
|
|
Capital
|
|
|
Book Value
|
|
|
Placed in
|
|
|
Total
|
|
|
Percentage
|
|
|
Percentage
|
|
|
Percentage
|
|
|
Completion
|
|
|
Stabilization
|
|
|
|
|
Projects
|
|
Location
|
|
|
Units
|
|
|
Cost (1)
|
|
|
to Date
|
|
|
Service
|
|
|
Debt
|
|
|
Completed
|
|
|
Leased
|
|
|
Occupied
|
|
|
Date
|
|
|
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects Under Development Wholly
Owned:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Red 160 (formerly Redmond Way)
|
|
|
Redmond, WA
|
|
|
|
250
|
|
|
$
|
84,382
|
|
|
$
|
76,964
|
|
|
$
|
76,964
|
|
|
$
|
-
|
|
|
|
97
|
%
|
|
|
86
|
%
|
|
|
68
|
%
|
|
|
Q1 2011
|
|
|
|
Q1 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
500 West 23rd Street (formerly 10 Chelsea) (2)
|
|
|
New York, NY
|
|
|
|
111
|
|
|
|
55,555
|
|
|
|
27,382
|
|
|
|
27,382
|
|
|
|
-
|
|
|
|
33
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
Q4 2011
|
|
|
|
Q4 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savoy III
|
|
|
Aurora, CO
|
|
|
|
168
|
|
|
|
23,856
|
|
|
|
5,409
|
|
|
|
5,409
|
|
|
|
-
|
|
|
|
7
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
Q3 2012
|
|
|
|
Q2 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2201 Pershing Drive
|
|
|
Arlington, VA
|
|
|
|
188
|
|
|
|
64,242
|
|
|
|
14,707
|
|
|
|
14,707
|
|
|
|
-
|
|
|
|
1
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
Q3 2012
|
|
|
|
Q3 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects Under Development Wholly Owned
|
|
|
|
|
|
|
717
|
|
|
|
228,035
|
|
|
|
124,462
|
|
|
|
124,462
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects Under Development
|
|
|
|
|
|
|
717
|
|
|
|
228,035
|
|
|
|
124,462
|
|
|
|
124,462
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completed Not Stabilized Wholly
Owned (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reunion at Redmond Ridge
|
|
|
Redmond, WA
|
|
|
|
321
|
|
|
|
53,175
|
|
|
|
53,151
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
94
|
%
|
|
|
93
|
%
|
|
|
Completed
|
|
|
|
Q1 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Westgate
|
|
|
Pasadena, CA
|
|
|
|
480
|
|
|
|
165,558
|
|
|
|
154,886
|
|
|
|
-
|
|
|
|
135,000
|
(4)
|
|
|
|
|
|
|
80
|
%
|
|
|
76
|
%
|
|
|
Completed
|
|
|
|
Q3 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
425 Mass (5)
|
|
|
Washington, D.C.
|
|
|
|
559
|
|
|
|
166,750
|
|
|
|
166,750
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
61
|
%
|
|
|
58
|
%
|
|
|
Completed
|
|
|
|
Q1 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vantage Pointe (5)
|
|
|
San Diego, CA
|
|
|
|
679
|
|
|
|
200,000
|
|
|
|
200,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
42
|
%
|
|
|
41
|
%
|
|
|
Completed
|
|
|
|
Q3 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects Completed Not Stabilized Wholly Owned
|
|
|
|
|
|
|
2,039
|
|
|
|
585,483
|
|
|
|
574,787
|
|
|
|
-
|
|
|
|
135,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completed Not Stabilized Partially
Owned (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Brooklyner (formerly 111 Lawrence)
|
|
|
Brooklyn, NY
|
|
|
|
490
|
|
|
|
272,368
|
|
|
|
257,748
|
|
|
|
-
|
|
|
|
141,741
|
|
|
|
|
|
|
|
93
|
%
|
|
|
89
|
%
|
|
|
Completed
|
|
|
|
Q2 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects Completed Not Stabilized Partially Owned
|
|
|
|
|
|
|
490
|
|
|
|
272,368
|
|
|
|
257,748
|
|
|
|
-
|
|
|
|
141,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects Completed Not Stabilized
|
|
|
|
|
|
|
2,529
|
|
|
|
857,851
|
|
|
|
832,535
|
|
|
|
-
|
|
|
|
276,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completed and Stabilized During the Quarter
Wholly Owned:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70 Greene (formerly 77 Hudson)
|
|
|
Jersey City, NJ
|
|
|
|
480
|
|
|
|
268,458
|
|
|
|
267,403
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
93
|
%
|
|
|
91
|
%
|
|
|
Completed
|
|
|
|
Stabilized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Square (formerly 303 Third)
|
|
|
Cambridge, MA
|
|
|
|
482
|
|
|
|
257,457
|
|
|
|
256,546
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
94
|
%
|
|
|
92
|
%
|
|
|
Completed
|
|
|
|
Stabilized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects Completed and Stabilized During the Quarter
Wholly Owned
|
|
|
|
|
|
|
962
|
|
|
|
525,915
|
|
|
|
523,949
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects Completed and Stabilized During the Quarter
|
|
|
|
|
|
|
962
|
|
|
|
525,915
|
|
|
|
523,949
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Projects
|
|
|
|
|
|
|
4,208
|
|
|
$
|
1,611,801
|
|
|
$
|
1,480,946
|
|
|
$
|
124,462
|
(6)
|
|
$
|
276,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land Held for Development
|
|
|
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
$
|
235,247
|
|
|
$
|
235,247
|
|
|
$
|
18,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Total capital cost represents
estimated cost for projects under development and/or developed
and all capitalized costs incurred to date plus any estimates of
costs remaining to be funded for all projects, all in accordance
with GAAP.
|
(2)
|
|
500 West
23rd
Street The land under this development is subject to
a long term ground lease.
|
(3)
|
|
Properties included here are
substantially complete. However, they may still require
additional exterior and interior work for all apartment units to
be available for leasing.
|
(4)
|
|
Debt is tax-exempt bonds that are
entirely outstanding, with $16.8 million held in escrow by
the lender and released as draw requests are made. This escrowed
amount is classified as Deposits
restricted in the consolidated balance sheets at
December 31, 2010. The Company paid off the
$28.2 million in taxable bonds during the fourth quarter of
2010.
|
(5)
|
|
The Company acquired these
completed development projects prior to stabilization and has
begun/continued
lease-up
activities.
|
(6)
|
|
Total book value not placed in
service excludes $5.9 million of
construction-in-progress
related to the reconstruction of the Prospect Towers garage.
|
26
|
|
Item 3.
|
Legal
Proceedings
|
The Company is party to a housing discrimination lawsuit brought
by a non-profit civil rights organization in April 2006 in the
U.S. District Court for the District of Maryland. The suit
alleges that the Company designed and built approximately 300 of
its properties in violation of the accessibility requirements of
the Fair Housing Act and Americans With Disabilities Act. The
suit seeks actual and punitive damages, injunctive relief
(including modification of non-compliant properties), costs and
attorneys fees. The Company believes it has a number of
viable defenses, including that a majority of the named
properties were completed before the operative dates of the
statutes in question
and/or were
not designed or built by the Company. Accordingly, the Company
is defending the suit vigorously. Due to the pendency of the
Companys defenses and the uncertainty of many other
critical factual and legal issues, it is not possible to
determine or predict the outcome of the suit or a possible loss
or a range of loss, and no amounts have been accrued at
December 31, 2010. While no assurances can be given, the
Company does not believe that the suit, if adversely determined,
would have a material adverse effect on the Company.
The Company does not believe there is any other 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.
27
PART II
Item 5. Market
for Registrants Common Equity, Related Stockholder Matters
and Issuer Purchases of Equity Securities
Common
Share Market Prices and Dividends
The following table sets forth, for the years indicated, the
high, low and closing sales prices for and the distributions
declared on the Companys Common Shares, which trade on the
New York Stock Exchange under the trading symbol EQR.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Price
|
|
|
|
|
|
|
High
|
|
|
Low
|
|
|
Closing
|
|
|
Distributions
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter Ended December 31, 2010
|
|
$
|
52.64
|
|
|
$
|
47.01
|
|
|
$
|
51.95
|
|
|
$
|
0.4575
|
|
Third Quarter Ended September 30, 2010
|
|
$
|
50.80
|
|
|
$
|
39.69
|
|
|
$
|
47.57
|
|
|
$
|
0.3375
|
|
Second Quarter Ended June 30, 2010
|
|
$
|
48.46
|
|
|
$
|
38.84
|
|
|
$
|
41.64
|
|
|
$
|
0.3375
|
|
First Quarter Ended March 31, 2010
|
|
$
|
40.43
|
|
|
$
|
31.40
|
|
|
$
|
39.15
|
|
|
$
|
0.3375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter Ended December 31, 2009
|
|
$
|
36.38
|
|
|
$
|
27.54
|
|
|
$
|
33.78
|
|
|
$
|
0.3375
|
|
Third Quarter Ended September 30, 2009
|
|
$
|
33.06
|
|
|
$
|
18.80
|
|
|
$
|
30.70
|
|
|
$
|
0.3375
|
|
Second Quarter Ended June 30, 2009
|
|
$
|
26.24
|
|
|
$
|
17.73
|
|
|
$
|
22.23
|
|
|
$
|
0.4825
|
|
First Quarter Ended March 31, 2009
|
|
$
|
29.87
|
|
|
$
|
15.68
|
|
|
$
|
18.35
|
|
|
$
|
0.4825
|
|
The number of record holders of Common Shares at
February 16, 2011 was approximately 3,000. The number of
outstanding Common Shares as of February 16, 2011 was
293,981,029.
Unregistered
Common Shares Issued in the Quarter Ended December 31,
2010
During the quarter ended December 31, 2010, the Company
issued 262,151 Common Shares in exchange for 262,151
OP Units held by various limited partners of the Operating
Partnership. OP Units are generally exchangeable into
Common Shares of EQR on a
one-for-one
basis or, at the option of the Operating Partnership, the cash
equivalent thereof, at any time one year after the date of
issuance. These shares were either registered under the
Securities Act of 1933, as amended (the Securities
Act), or issued in reliance on an exemption from
registration under Section 4(2) of the Securities Act and
the rules and regulations promulgated thereunder, as these were
transactions by an issuer not involving a public offering. In
light of the manner of the sale and information obtained by the
Company from the limited partners in connection with these
transactions, the Company believes it may rely on these
exemptions.
Equity
Compensation Plan Information
The following table provides information as of December 31,
2010 with respect to the Companys Common Shares that may
be issued under its existing equity compensation plans.
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of securities
|
|
|
|
|
|
|
remaining available
|
|
|
Number of securities
|
|
Weighted average
|
|
for future issuance
|
|
|
to be issued upon
|
|
exercise price of
|
|
under equity
|
|
|
exercise of
|
|
outstanding
|
|
compensation plans
|
|
|
outstanding options,
|
|
options, warrants
|
|
(excluding securities
|
Plan Category
|
|
warrants and rights
|
|
and rights
|
|
in column (a))
|
|
|
(a) (1)
|
|
(b) (1)
|
|
(c) (2)
|
|
Equity compensation plans approved by shareholders
|
|
10,106,488
|
|
$33.00
|
|
8,799,709
|
|
|
|
|
|
|
|
Equity compensation plans not approved by shareholders
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
(1)
|
|
The amounts shown in columns
(a) and (b) of the above table do not include 911,950
outstanding Common Shares (all of which are restricted and
subject to vesting requirements) that were granted under the
Companys Amended and Restated 1993 Share Option and
Share Award Plan, as amended (the 1993 Plan) and the
Companys 2002 Share Incentive Plan, as restated (the
2002 Plan) and outstanding Common Shares that have
been purchased by employees and trustees under the
Companys ESPP.
|
28
|
|
|
(2)
|
|
Includes 5,395,739 Common Shares
that may be issued under the 2002 Plan, of which only 25% may be
in the form of restricted shares, and 3,403,970 Common Shares
that may be sold to employees and trustees under the ESPP.
|
The aggregate number of securities available for issuance
(inclusive of restricted shares previously granted and
outstanding and shares underlying outstanding options) under the
2002 Plan equals 7.5% of the Companys outstanding Common
Shares, calculated on a fully diluted basis, determined annually
on the first day of each calendar year. On January 1, 2011,
this amount equaled 22,785,696, of which 5,395,739 shares
were available for future issuance. No awards may be granted
under the 2002 Plan after February 20, 2012.
|
|
Item 6.
|
Selected
Financial Data
|
The following table sets forth selected financial and operating
information on a historical basis for the Company. The following
information should be read in conjunction with all of the
financial statements and notes thereto included elsewhere in
this
Form 10-K.
The historical operating and balance sheet data have been
derived from the historical financial statements of the Company.
All amounts have also been restated in accordance with the
guidance on discontinued operations. Certain capitalized terms
as used herein are defined in the Notes to Consolidated
Financial Statements.
29
CONSOLIDATED
HISTORICAL FINANCIAL INFORMATION
(Financial information in thousands except for per share and
property data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
OPERATING DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues from continuing operations
|
|
$
|
1,995,519
|
|
|
$
|
1,856,503
|
|
|
$
|
1,886,988
|
|
|
$
|
1,739,444
|
|
|
$
|
1,503,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income
|
|
$
|
5,469
|
|
|
$
|
16,585
|
|
|
$
|
33,337
|
|
|
$
|
19,660
|
|
|
$
|
30,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations
|
|
$
|
(19,844
|
)
|
|
$
|
2,931
|
|
|
$
|
(40,054
|
)
|
|
$
|
(4,982
|
)
|
|
$
|
(29,983
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net
|
|
$
|
315,827
|
|
|
$
|
379,098
|
|
|
$
|
476,467
|
|
|
$
|
1,052,338
|
|
|
$
|
1,177,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
295,983
|
|
|
$
|
382,029
|
|
|
$
|
436,413
|
|
|
$
|
1,047,356
|
|
|
$
|
1,147,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Common Shares
|
|
$
|
269,242
|
|
|
$
|
347,794
|
|
|
$
|
393,115
|
|
|
$
|
951,242
|
|
|
$
|
1,028,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) from continuing operations available to Common Shares
|
|
$
|
(0.11
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
(0.20
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
(0.25
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Common Shares
|
|
$
|
0.95
|
|
|
$
|
1.27
|
|
|
$
|
1.46
|
|
|
$
|
3.40
|
|
|
$
|
3.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average Common Shares outstanding
|
|
|
282,888
|
|
|
|
273,609
|
|
|
|
270,012
|
|
|
|
279,406
|
|
|
|
290,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) from continuing operations available to Common Shares
|
|
$
|
(0.11
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
(0.20
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
(0.25
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Common Shares
|
|
$
|
0.95
|
|
|
$
|
1.27
|
|
|
$
|
1.46
|
|
|
$
|
3.40
|
|
|
$
|
3.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average Common Shares outstanding
|
|
|
282,888
|
|
|
|
273,609
|
|
|
|
270,012
|
|
|
|
279,406
|
|
|
|
290,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions declared per Common Share outstanding
|
|
$
|
1.47
|
|
|
$
|
1.64
|
|
|
$
|
1.93
|
|
|
$
|
1.87
|
|
|
$
|
1.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET DATA (at end of period):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate, before accumulated depreciation
|
|
$
|
19,702,371
|
|
|
$
|
18,465,144
|
|
|
$
|
18,690,239
|
|
|
$
|
18,333,350
|
|
|
$
|
17,235,175
|
|
Real estate, after accumulated depreciation
|
|
$
|
15,365,014
|
|
|
$
|
14,587,580
|
|
|
$
|
15,128,939
|
|
|
$
|
15,163,225
|
|
|
$
|
14,212,695
|
|
Total assets
|
|
$
|
16,184,194
|
|
|
$
|
15,417,515
|
|
|
$
|
16,535,110
|
|
|
$
|
15,689,777
|
|
|
$
|
15,062,219
|
|
Total debt
|
|
$
|
9,948,076
|
|
|
$
|
9,392,570
|
|
|
$
|
10,483,942
|
|
|
$
|
9,478,157
|
|
|
$
|
8,017,008
|
|
Redeemable Noncontrolling Interests
Operating Partnership
|
|
$
|
383,540
|
|
|
$
|
258,280
|
|
|
$
|
264,394
|
|
|
$
|
345,165
|
|
|
$
|
509,310
|
|
Total Noncontrolling Interests
|
|
$
|
118,390
|
|
|
$
|
127,174
|
|
|
$
|
163,349
|
|
|
$
|
188,605
|
|
|
$
|
224,783
|
|
Total Shareholders equity
|
|
$
|
5,090,186
|
|
|
$
|
5,047,339
|
|
|
$
|
4,905,356
|
|
|
$
|
4,917,370
|
|
|
$
|
5,602,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total properties (at end of period)
|
|
|
451
|
|
|
|
495
|
|
|
|
548
|
|
|
|
579
|
|
|
|
617
|
|
Total apartment units (at end of period)
|
|
|
129,604
|
|
|
|
137,007
|
|
|
|
147,244
|
|
|
|
152,821
|
|
|
|
165,716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations available to Common Shares and
Units basic (1)(3)(4)
|
|
$
|
622,786
|
|
|
$
|
615,505
|
|
|
$
|
618,372
|
|
|
$
|
713,412
|
|
|
$
|
712,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized funds from operations available to Common Shares and
Units basic (2)(3)(4)
|
|
$
|
682,422
|
|
|
$
|
661,542
|
|
|
$
|
735,062
|
|
|
$
|
699,029
|
|
|
$
|
699,276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow provided by (used for):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities
|
|
$
|
732,693
|
|
|
$
|
672,462
|
|
|
$
|
755,252
|
|
|
$
|
793,232
|
|
|
$
|
755,774
|
|
Investing activities
|
|
$
|
(646,114
|
)
|
|
$
|
103,579
|
|
|
$
|
(344,028
|
)
|
|
$
|
(200,749
|
)
|
|
$
|
(259,780
|
)
|
Financing activities
|
|
$
|
151,541
|
|
|
$
|
(1,473,547
|
)
|
|
$
|
428,739
|
|
|
$
|
(801,929
|
)
|
|
$
|
(324,545
|
)
|
|
|
|
(1) |
|
The National Association of Real
Estate Investment Trusts (NAREIT) defines funds from
operations (FFO) (April 2002 White Paper) as net
income (computed in accordance with accounting principles
generally accepted in the United States (GAAP)),
excluding gains (or losses) from sales of depreciable property,
plus depreciation and amortization, and after adjustments for
unconsolidated partnerships and joint ventures. Adjustments for
unconsolidated partnerships and joint ventures will be
calculated to reflect funds from operations on the same basis.
The April 2002 White Paper states that gain or loss on sales of
property is excluded from FFO for previously depreciated
operating properties only. Once the Company commences the
conversion of apartment units to condominiums, it simultaneously
discontinues depreciation of such property. |
30
|
|
|
(2) |
|
Normalized funds from operations
(Normalized FFO) begins with FFO and
excludes: |
|
|
|
|
n
|
the impact of any expenses
relating to asset impairment and valuation allowances;
|
|
|
n
|
property acquisition and other
transaction costs related to mergers and acquisitions and
pursuit cost write-offs (other expenses);
|
|
|
n
|
gains and losses from early
debt extinguishment, including prepayment penalties, preferred
share redemptions and the cost related to the implied option
value of non-cash convertible debt discounts;
|
|
|
n
|
gains and losses on the sales
of non-operating assets, including gains and losses from land
parcel and condominium sales, net of the effect of income tax
benefits or expenses; and
|
|
|
n
|
other miscellaneous
non-comparable items.
|
|
|
|
(3) |
|
The Company believes that FFO and FFO available to Common
Shares and Units are helpful to investors as supplemental
measures of the operating performance of a real estate company,
because they are recognized measures of performance by the real
estate industry and by excluding gains or losses related to
dispositions of depreciable property and excluding real estate
depreciation (which can vary among owners of identical assets in
similar condition based on historical cost accounting and useful
life estimates), FFO and FFO available to Common Shares and
Units can help compare the operating performance of a
companys real estate between periods or as compared to
different companies. The company also believes that Normalized
FFO and Normalized FFO available to Common Shares and Units are
helpful to investors as supplemental measures of the operating
performance of a real estate company because they allow
investors to compare the companys operating performance to
its performance in prior reporting periods and to the operating
performance of other real estate companies without the effect of
items that by their nature are not comparable from period to
period and tend to obscure the Companys actual operating
results. FFO, FFO available to Common Shares and Units,
Normalized FFO and Normalized FFO available to Common Shares and
Units do not represent net income, net income available to
Common Shares or net cash flows from operating activities in
accordance with GAAP. Therefore, FFO, FFO available to Common
Shares and Units, Normalized FFO and Normalized FFO available to
Common Shares and Units should not be exclusively considered as
alternatives to net income, net income available to Common
Shares or net cash flows from operating activities as determined
by GAAP or as a measure of liquidity. The Companys
calculation of FFO, FFO available to Common Shares and Units,
Normalized FFO and Normalized FFO available to Common Shares and
Units may differ from other real estate companies due to, among
other items, variations in cost capitalization policies for
capital expenditures and, accordingly, may not be comparable to
such other real estate companies. |
|
(4) |
|
FFO available to Common Shares and Units and Normalized FFO
available to Common Shares and Units are calculated on a basis
consistent with net income available to Common Shares and
reflects adjustments to net income for preferred distributions
and premiums on redemption of preferred shares in accordance
with accounting principles generally accepted in the United
States. The equity positions of various individuals and entities
that contributed their properties to the Operating Partnership
in exchange for OP Units are collectively referred to as the
Noncontrolling Interests Operating
Partnership. Subject to certain restrictions, the
Noncontrolling Interests Operating Partnership may
exchange their OP Units for EQR Common Shares on a
one-for-one
basis. |
Note: See Item 7 for a reconciliation of net income to FFO,
FFO available to Common Shares and Units, Normalized FFO and
Normalized FFO available to Common Shares and Units.
|
|
Item 7.
|
Managements
Discussion and Analysis of Financial Condition and Results of
Operations
|
The following discussion and analysis of the results of
operations and financial condition of the Company should be read
in connection with the Consolidated Financial Statements and
Notes thereto. Due to the Companys ability to control the
Operating Partnership and its subsidiaries, the Operating
Partnership and each such subsidiary entity has been
consolidated with the Company for financial reporting purposes,
except for an unconsolidated development land parcel and our
military housing properties. Capitalized terms used herein and
not defined are as defined elsewhere in this Annual Report on
Form 10-K
for the year ended December 31, 2010.
Forward-Looking
Statements
Forward-looking statements in this Item 7 as well as
elsewhere in this Annual Report on
Form 10-K
are intended to be made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. These
statements are based on current expectations, estimates,
projections and assumptions made by management. While the
Companys management believes the assumptions underlying
its forward-looking statements are reasonable, such information
is inherently subject to uncertainties and may involve certain
risks, which could cause actual results, performance or
achievements of the Company to
31
differ materially from anticipated future results, performance
or achievements expressed or implied by such forward-looking
statements. Many of these uncertainties and risks are difficult
to predict and beyond managements control. Forward-looking
statements are not guarantees of future performance, results or
events. The forward-looking statements contained herein are made
as of the date hereof and the Company undertakes no obligation
to update or supplement these forward-looking statements.
Factors that might cause such differences include, but are not
limited to the following:
|
|
|
|
n
|
We intend to actively acquire
and/or
develop multifamily properties for rental operations as market
conditions dictate. We may also acquire multifamily properties
that are unoccupied or in the early stages of lease up. We may
be unable to lease up these apartment properties on schedule,
resulting in decreases in expected rental revenues
and/or lower
yields due to lower occupancy and rates as well as higher than
expected concessions. We may underestimate the costs necessary
to bring an acquired property up to standards established for
its intended market position or to complete a development
property. Additionally, we expect that other major real estate
investors with significant capital will compete with us for
attractive investment opportunities or may also develop
properties in markets where we focus our development efforts.
This competition (or lack thereof) may increase (or depress)
prices for multifamily properties. We may not be in a position
or have the opportunity in the future to make suitable property
acquisitions on favorable terms. The total number of development
units, costs of development and estimated completion dates are
subject to uncertainties arising from changing economic
conditions (such as the cost of labor and construction
materials), competition and local government regulation;
|
|
|
n
|
Debt financing and other capital
required by the Company may not be available or may only be
available on adverse terms;
|
|
|
n
|
Labor and materials required for
maintenance, repair, capital expenditure or development may be
more expensive than anticipated;
|
|
|
n
|
Occupancy levels and market rents
may be adversely affected by national and local economic and
market conditions including, without limitation, new
construction and excess inventory of multifamily housing and
single family housing, slow or negative employment growth,
availability of low interest mortgages for single family home
buyers and the potential for geopolitical instability, all of
which are beyond the Companys control; and
|
|
|
n
|
Additional factors as discussed in
Part I of this Annual Report on
Form 10-K,
particularly those under Item 1A. Risk
Factors.
|
Forward-looking statements and related uncertainties are also
included in the Notes to Consolidated Financial Statements in
this report.
Overview
Equity Residential (EQR), a Maryland real estate
investment trust (REIT) formed in March 1993, is an
S&P 500 company focused on the acquisition,
development and management of high quality apartment properties
in top United States growth markets. EQR has elected to be
taxed as a REIT.
The Company is one of the largest publicly traded real estate
companies and is the largest publicly traded owner of
multifamily properties in the United States (based on the
aggregate market value of its outstanding Common Shares, the
number of apartment units wholly owned and total revenues
earned). The Companys corporate headquarters are located
in Chicago, Illinois and the Company also operates property
management offices in each of its markets. As of
December 31, 2010, the Company had approximately
4,000 employees who provided real estate operations,
leasing, legal, financial, accounting, acquisition, disposition,
development and other support functions.
EQR is the general partner of, and as of December 31, 2010
owned an approximate 95.5% ownership interest in, ERP Operating
Limited Partnership, an Illinois limited partnership (the
Operating Partnership). All of EQRs property
ownership, development and related business operations are
conducted through the Operating Partnership and its
subsidiaries. References to the Company include EQR,
the Operating Partnership and those entities owned or controlled
by the Operating Partnership
and/or EQR.
Business
Objectives and Operating and Investing Strategies
The Company invests in apartment communities located in
strategically targeted markets with the goal of maximizing our
risk adjusted total return (operating income plus capital
appreciation) on invested capital.
Our operating focus is on balancing occupancy and rental rates
to maximize our revenue while exercising tight cost control to
generate the highest possible return to our shareholders.
Revenue is maximized by driving qualified
32
resident prospects to our properties, converting this traffic
cost-effectively into new leases at the highest rent possible,
keeping our residents satisfied and renewing their leases at yet
higher rents. While we believe that it is our high-quality,
well-located assets that bring our customers to us, it is our
customer service that keeps them renting with us and
recommending us to their friends.
We use technology to engage our customers in the way that they
want to be engaged. Many of our residents utilize our web-based
resident portal which allows them to review their account and
make payments, provide feedback and make service requests
on-line.
We seek to maximize capital appreciation of our properties by
investing in markets that are characterized by conditions
favorable to multifamily property appreciation. These markets
generally feature one or more of the following:
|
|
|
|
n
|
High barriers to entry where,
because of land scarcity or government regulation, it is
difficult or costly to build new apartment properties leading to
low supply;
|
|
|
n
|
High single family home prices
making our apartments a more economical housing choice;
|
|
|
n
|
Strong economic growth leading to
household formation and job growth, which in turn leads to high
demand for our apartments; and
|
|
|
n
|
An attractive quality of life
leading to high demand and retention and allowing us to more
readily increase rents.
|
Acquisitions and developments may be financed from various
sources of capital, which may include retained cash flow,
issuance of additional equity and debt securities, sales of
properties, joint venture agreements and collateralized and
uncollateralized borrowings. In addition, the Company may
acquire properties in transactions that include the issuance of
limited partnership interests in the Operating Partnership
(OP Units) as consideration for the acquired
properties. Such transactions may, in certain circumstances,
enable the sellers to defer, in whole or in part, the
recognition of taxable income or gain that might otherwise
result from the sales. EQR may also acquire land parcels to hold
and/or sell
based on market opportunities. The Company may also seek to
acquire properties by purchasing defaulted or distressed debt
that encumbers desirable properties in the hope of obtaining
title to property through foreclosure or
deed-in-lieu
of foreclosure proceedings. The Company has also, in the past,
converted some of its properties and sold them as condominiums
but is not currently active in this line of business.
The Company primarily sources the funds for its new property
acquisitions in its core markets with the sales proceeds from
selling assets that are older or located in non-core markets.
During the last five years, the Company has sold over 97,000
apartment units for an aggregate sales price of
$7.2 billion and acquired nearly 25,000 apartment units in
its core markets for approximately $5.5 billion. We are
currently acquiring and developing assets primarily in the
following targeted metropolitan areas: Boston, New York,
Washington DC, South Florida, Southern California,
San Francisco, Seattle and to a lesser extent Denver. We
also have investments (in the aggregate about 18% of our NOI) in
other markets including Atlanta, Phoenix, Portland, Oregon, New
England excluding Boston, Tampa, Orlando and Jacksonville but do
not intend to acquire or develop assets in these markets.
As part of its strategy, the Company purchases completed and
fully occupied apartment properties, partially completed or
partially unoccupied properties or land on which apartment
properties can be constructed. We intend to hold a diversified
portfolio of assets across our target markets. Currently, no
single metropolitan area accounts for more than 17% of our NOI,
though no guarantee can be made that NOI concentration may not
increase in the future.
We endeavor to attract and retain the best employees by
providing them with the education, resources and opportunities
to succeed. We provide many classroom and on-line training
courses to assist our employees in interacting with prospects
and residents as well as extensively train our customer service
specialists in maintaining the equipment and appliances on our
property sites. We actively promote from within and many senior
corporate and property leaders have risen from entry level or
junior positions. We monitor our employees engagement by
surveying them annually and have consistently received high
engagement scores.
We have a commitment to sustainability and consider the
environmental impacts of our business activities. With its high
density, multifamily housing is, by its nature, an
environmentally friendly property type. Our recent acquisition
and development activities have been primarily concentrated in
pedestrian-friendly urban locations near public transportation.
When developing and renovating our properties, we strive to
reduce energy and water usage by investing in energy saving
technology while positively impacting the experience of our
residents and the value of our assets. We continue to implement
a combination of irrigation, lighting and HVAC improvements at
our properties that will reduce energy and water consumption.
Current
Environment
Through much of 2009, the Company assumed a highly cautious
outlook given uncertainty in the general economy and the capital
markets and expected reduction in our property operations. In
late 2009, the Company saw that occupancy was
33
firming. This was an especially encouraging sign as it came
during the Companys seasonally slower fourth quarter. At
the same time, the Company also saw marked improvement in the
capital markets. In response, the Company began acquiring assets
and increasing rents for both new and renewing residents, which
led to better operating and investment performance for the
Company. 2010 was characterized by higher occupancy and rent
levels than 2009. The Company increased rents to a greater
extent in markets like the Northeast, where the economy was
stronger and multifamily operating conditions were better. In
2010, the Company ceased to hold the large cash balances (often
$1.0 billion or more) that it held in 2009 in anticipation
of debt maturities in an unsure capital markets climate. This
had the result of increasing the Companys earnings by
decreasing debt prefunding costs. Finally, the Company was
aggressive in acquiring $1.5 billion of assets in its
target markets in 2010. Improvement materialized throughout 2010
and as we enter 2011, we expect strong growth in same store
revenue (anticipated increases ranging from 4.0% to 5.0%) and
NOI (anticipated increases ranging from 5.0% to 7.5%) and are
optimistic that the improvement realized in 2010 will be
sustained for the foreseeable future.
We currently have access to multiple sources of capital
including the equity markets as well as both the secured and
unsecured debt markets. In July 2010, the Company completed a
$600.0 million unsecured ten year notes offering with a
coupon of 4.75% and an all-in effective interest rate of 5.09%.
The all-in rate combined with its accretive nature compared to
maturing 2011 fixed rate debt led the Company to pursue this
transaction. The Company also raised $291.9 million in
equity under its ATM Common Share offering program in 2010 and
has raised an additional $154.5 million under this program
thus far in 2011.
Given the strong market for many of our disposition assets and
increased competition for assets in our target markets, we
expect to be a net seller of assets in 2011 in contrast to being
a net buyer of assets in 2010. The Company acquired 16
consolidated properties consisting of 4,445 apartment units for
$1.5 billion and six land parcels for $68.9 million
during the year ended December 31, 2010. While competition
for the properties we were interested in acquiring increased as
2010 progressed due to the overall improvement in market
fundamentals, we were able to close several, of what we believe
are, long-term, value added acquisition opportunities. Our
acquisition pipeline has moderated and we expect a greater
concentration of our 2011 acquisitions to occur in the latter
half of the year. We believe our access to capital, our ability
to execute large, complex transactions and our ability to
efficiently stabilize large scale lease up properties provide us
with a competitive advantage. During the year ended
December 31, 2010, the Company sold 35 consolidated
properties consisting of 7,171 apartment units for
$718.4 million and 27 unconsolidated properties consisting
of 6,275 apartment units generating cash proceeds to the Company
of $26.9 million, as well as 2 condominium units for
$0.4 million and one land parcel for $4.0 million. We
expect to continue strategic dispositions and see an increase in
dispositions in 2011 as we believe there is currently a robust
market and favorable pricing for certain of our non-strategic
assets. Our dispositions in 2010 were at higher capitalization
(cap) rates (see definition in Results of
Operations) than the acquisitions we completed. We expect this
to continue in 2011 and expect to experience dilution from past
and future transactions.
We believe that cash and cash equivalents, securities readily
convertible to cash, current availability on our revolving
credit facility and disposition proceeds for 2011 will provide
sufficient liquidity to meet our funding obligations relating to
asset acquisitions, debt maturities and existing development
projects through 2011. We expect that our remaining longer-term
funding requirements will be met through some combination of new
borrowings, equity issuances (including the Companys ATM
share offering program), property dispositions, joint ventures
and cash generated from operations. There is significant
uncertainty surrounding the futures of Fannie Mae and Freddie
Mac. Any changes to their mandates could have a significant
impact on the Company and may, among other things, lead to lower
values for our disposition assets and higher interest rates on
our borrowings. Such changes may also provide an advantage to us
by making the cost of financing single family home ownership
more expensive and provide us a competitive advantage given the
size of our balance sheet and the multiple sources of capital to
which we have access.
We believe that the Company is well-positioned as of
December 31, 2010 (our properties are geographically
diverse and were approximately 94.1% occupied (94.5% on a same
store basis)), little new multifamily rental supply will be
added to most of our markets over the next several years and the
long-term demographic picture is positive. We believe our strong
balance sheet and ample liquidity will allow us to fund our debt
maturities and development fundings in the near term, and should
also allow us to take advantage of investment opportunities in
the future. As economic conditions continue to improve, the
short-term nature of our leases and the limited supply of new
rental housing being constructed should allow us to realize
revenue growth and improvement in our operating results.
The Company anticipates that 2011 same store expenses will only
increase 1.0% to 2.0% primarily due to modest increases in
payroll expenses, real estate tax rates and utility cost growth
(same store expenses increased 0.9% for 2010 when compared with
the same period in the prior year). This follows three
consecutive years of excellent expense control (same store
expenses declined 0.1% between 2009 and 2008 and grew 2.2%
between 2008 and 2007 and 2.1% between 2007 and 2006).
The current environment information presented above is based on
current expectations and is forward-looking.
34
Results
of Operations
In conjunction with our business objectives and operating
strategy, the Company continued to invest in apartment
properties located in strategically targeted markets during the
years ended December 31, 2010 and December 31, 2009.
In summary, we:
Year Ended December 31, 2010:
|
|
|
|
n
|
Acquired $1.1 billion of
apartment properties consisting of 14 consolidated properties
and 3,207 apartment units at a weighted average cap rate (see
definition below) of 5.4% and six land parcels for
$68.9 million, all of which we deem to be in our strategic
targeted markets;
|
|
|
n
|
Acquired one unoccupied property
in the second quarter of 2010 (425 Mass in
Washington, D.C.) for $166.8 million consisting of 559
apartment units that is expected to stabilize in its third year
of ownership at an 8.5% yield on cost and one property in the
third quarter of 2010 (Vantage Pointe in San Diego, CA) for
$200.0 million consisting of 679 apartment units that was
in the early stages of lease up and is expected to stabilize in
its third year of ownership at a 7.0% yield on cost;
|
|
|
n
|
Acquired the 75% equity interest
it did not own in seven previously unconsolidated properties
consisting of 1,811 apartment units at an implied cap rate of
8.4% in exchange for an approximate $30.0 million payment
to its joint venture partner;
|
|
|
n
|
Sold $718.4 million of
consolidated apartment properties consisting of 35 properties
and 7,171 apartment units at a weighted average cap rate of
6.7%, 2 condominium units for $0.4 million and one land
parcel for $4.0 million, the majority of which was in exit
or less desirable markets; and
|
|
|
n
|
Sold the last of its 25% equity
interests in an institutional joint venture consisting of 27
unconsolidated properties containing 6,275 apartment units.
These properties were valued in their entirety at
$417.8 million which results in an implied weighted average
cap rate of 7.5% (generating cash to the Company, net of debt
repayments, of $26.9 million).
|
Year Ended December 31, 2009:
|
|
|
|
n
|
Acquired $145.0 million of
apartment properties consisting of two properties and 566
apartment units (excluding the Companys buyout of its
partners interest in one previously unconsolidated
property) and a long-term leasehold interest in a land parcel
for $11.5 million, all of which we deem to be in our
strategic targeted markets; and
|
|
|
n
|
Sold $1.0 billion of
apartment properties consisting of 60 properties and 12,489
apartment units (excluding the Companys buyout of its
partners interest in one previously unconsolidated
property), as well as 62 condominium units for
$12.0 million, the majority of which was in exit or less
desirable markets.
|
The Companys primary financial measure for evaluating each
of its apartment communities is net operating income
(NOI). NOI represents rental income less property
and maintenance expense, real estate tax and insurance expense
and property management expense. The Company believes that NOI
is helpful to investors as a supplemental measure of its
operating performance because it is a direct measure of the
actual operating results of the Companys apartment
communities. The cap rate is generally the first year NOI yield
(net of replacements) on the Companys investment.
Properties that the Company owned for all of both 2010 and 2009
(the 2010 Same Store Properties), which represented
112,042 apartment units, impacted the Companys results of
operations. Properties that the Company owned for all of both
2009 and 2008 (the 2009 Same Store Properties),
which represented 113,598 apartment units, also impacted the
Companys results of operations. Both the 2010 Same Store
Properties and 2009 Same Store Properties are discussed in the
following paragraphs.
The Companys acquisition, disposition and completed
development activities also impacted overall results of
operations for the years ended December 31, 2010 and 2009.
Dilution, as a result of the Companys net asset sales in
2009, partially offset by net asset acquisitions and lease up
activity in 2010, negatively impacts property net operating
income. The impacts of these activities are discussed in greater
detail in the following paragraphs.
Comparison
of the year ended December 31, 2010 to the year ended
December 31, 2009
For the year ended December 31, 2010, the Company reported
diluted earnings per share of $0.95 compared to $1.27 per share
for the year ended December 31, 2009. The difference is
primarily due to $37.3 million in lower gains from property
sales in 2010 vs. 2009 and $34.3 million in higher
impairment losses in 2010 vs. 2009.
35
For the year ended December 31, 2010, loss from continuing
operations increased approximately $22.8 million when
compared to the year ended December 31, 2009. The decrease
in continuing operations is discussed below.
Revenues from the 2010 Same Store Properties decreased
$2.1 million primarily as a result of a decrease in average
rental rates charged to residents, partially offset by an
increase in occupancy. Expenses from the 2010 Same Store
Properties increased $6.2 million primarily due to
increases in repairs and maintenance expenses (mostly due to
greater storm-related costs such as snow removal and roof
repairs incurred during the first quarter of 2010), higher
property management costs and increases in utility costs,
partially offset by lower real estate taxes and leasing and
advertising expenses. The following tables provide comparative
same store results and statistics for the 2010 Same Store
Properties:
2010 vs.
2009
Same Store Results/Statistics
$ in thousands (except for Average Rental Rate)
112,042 Same Store Units
|
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|
|
|
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|
|
Results
|
|
|
Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
|
|
|
|
|
|
|
|
Description
|
|
Revenues
|
|
|
Expenses
|
|
|
NOI
|
|
|
Rate (1)
|
|
|
Occupancy
|
|
|
Turnover
|
|
|
2010
|
|
$
|
1,728,268
|
|
|
$
|
654,663
|
|
|
$
|
1,073,605
|
|
|
$
|
1,358
|
|
|
|
94.8%
|
|
|
|
56.7%
|
|
2009
|
|
$
|
1,730,335
|
|
|
$
|
648,508
|
|
|
$
|
1,081,827
|
|
|
$
|
1,375
|
|
|
|
93.7%
|
|
|
|
61.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
$
|
(2,067)
|
|
|
$
|
6,155
|
|
|
$
|
(8,222)
|
|
|
$
|
(17)
|
|
|
|
1.1%
|
|
|
|
(4.8)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
|
(0.1%)
|
|
|
|
0.9%
|
|
|
|
(0.8)%
|
|
|
|
(1.2%)
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Average rental rate is defined as
total rental revenues divided by the weighted average occupied
units for the period.
|
The following table provides comparative same store operating
expenses for the 2010 Same Store Properties:
2010 vs.
2009
Same Store Operating Expenses
$ in thousands 112,042 Same Store Units
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Actual
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
|
Actual
|
|
|
Actual
|
|
|
$
|
|
|
%
|
|
|
Operating
|
|
|
|
2010
|
|
|
2009
|
|
|
Change
|
|
|
Change
|
|
|
Expenses
|
|
|
Real estate taxes
|
|
$
|
174,131
|
|
|
$
|
177,180
|
|
|
$
|
(3,049
|
)
|
|
|
(1.7
|
%)
|
|
|
26.6
|
%
|
On-site
payroll (1)
|
|
|
156,668
|
|
|
|
156,446
|
|
|
|
222
|
|
|
|
0.1
|
%
|
|
|
23.9
|
%
|
Utilities (2)
|
|
|
102,553
|
|
|
|
100,441
|
|
|
|
2,112
|
|
|
|
2.1
|
%
|
|
|
15.7
|
%
|
Repairs and maintenance (3)
|
|
|
97,166
|
|
|
|
94,223
|
|
|
|
2,943
|
|
|
|
3.1
|
%
|
|
|
14.8
|
%
|
Property management costs (4)
|
|
|
69,995
|
|
|
|
64,022
|
|
|
|
5,973
|
|
|
|
9.3
|
%
|
|
|
10.7
|
%
|
Insurance
|
|
|
21,545
|
|
|
|
21,525
|
|
|
|
20
|
|
|
|
0.1
|
%
|
|
|
3.3
|
%
|
Leasing and advertising
|
|
|
14,892
|
|
|
|
16,029
|
|
|
|
(1,137
|
)
|
|
|
(7.1
|
%)
|
|
|
2.3
|
%
|
Other
on-site
operating expenses (5)
|
|
|
17,713
|
|
|
|
18,642
|
|
|
|
(929
|
)
|
|
|
(5.0
|
%)
|
|
|
2.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store operating expenses
|
|
$
|
654,663
|
|
|
$
|
648,508
|
|
|
$
|
6,155
|
|
|
|
0.9
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
On-site
payroll Includes payroll and related expenses for
on-site
personnel including property managers, leasing consultants and
maintenance staff.
|
(2)
|
|
Utilities Represents
gross expenses prior to any recoveries under the Resident
Utility Billing System (RUBS). Recoveries are
reflected in rental income.
|
(3)
|
|
Repairs and maintenance
Includes general maintenance costs, unit turnover costs
including interior painting, routine landscaping, security,
exterminating, fire protection, snow removal, elevator, roof and
parking lot repairs and other miscellaneous building repair
costs.
|
(4)
|
|
Property management
costs Includes payroll and related expenses for
departments, or portions of departments, that directly support
on-site
management. These include such departments as regional and
corporate property management, property accounting, human
resources, training, marketing and revenue management,
procurement, real estate tax, property legal services and
information technology.
|
(5)
|
|
Other
on-site
operating expenses Includes administrative costs
such as office supplies, telephone and data charges and
association and business licensing fees.
|
36
The following table presents a reconciliation of operating
income per the consolidated statements of operations to NOI for
the 2010 Same Store Properties.
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
|
(Amounts in thousands)
|
|
|
Operating income
|
|
$
|
442,001
|
|
|
$
|
496,601
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Non-same store operating results
|
|
|
(105,960
|
)
|
|
|
(21,336
|
)
|
Fee and asset management revenue
|
|
|
(9,476
|
)
|
|
|
(10,346
|
)
|
Fee and asset management expense
|
|
|
5,140
|
|
|
|
7,519
|
|
Depreciation
|
|
|
656,633
|
|
|
|
559,271
|
|
General and administrative
|
|
|
39,887
|
|
|
|
38,994
|
|
Impairment
|
|
|
45,380
|
|
|
|
11,124
|
|
|
|
|
|
|
|
|
|
|
Same store NOI
|
|
$
|
1,073,605
|
|
|
$
|
1,081,827
|
|
|
|
|
|
|
|
|
|
|
For properties that the Company acquired prior to
January 1, 2010 and expects to continue to own through
December 31, 2011, the Company anticipates the following
same store results for the full year ending December 31,
2011:
|
|
|
2011 Same Store Assumptions
|
|
Physical occupancy
|
|
95.0%
|
Revenue change
|
|
4.0% to 5.0%
|
Expense change
|
|
1.0% to 2.0%
|
NOI change
|
|
5.0% to 7.5%
|
The Company anticipates consolidated rental acquisitions of
$1.0 billion and consolidated rental dispositions of
$1.25 billion and expects that acquisitions will have a
1.25% lower cap rate than dispositions for the full year ending
December 31, 2011.
These 2011 assumptions are based on current expectations and are
forward-looking.
Non-same store operating results increased approximately
$84.6 million and consist primarily of properties acquired
in calendar years 2009 and 2010, as well as operations from the
Companys completed development properties and corporate
housing business. While the operations of the non-same store
assets have been negatively impacted during the year ended
December 31, 2010 similar to the same store assets, the
non-same store assets have contributed a greater percentage of
total NOI to the Companys overall operating results
primarily due to increasing occupancy for properties in
lease-up and
a longer ownership period in 2010 than 2009. This increase
primarily resulted from:
|
|
|
|
n
|
Development and other
miscellaneous properties in
lease-up of
$32.4 million;
|
|
|
n
|
Newly stabilized development and
other miscellaneous properties of $0.2 million;
|
|
|
n
|
Properties acquired in 2009 and
2010 of $56.2 million; and
|
|
|
n
|
Partially offset by an allocation
of property management costs not included in same store results
and operating activities from other miscellaneous operations,
such as the Companys corporate housing business.
|
See also Note 19 in the Notes to Consolidated Financial
Statements for additional discussion regarding the
Companys segment disclosures.
Fee and asset management revenues, net of fee and asset
management expenses, increased approximately $1.5 million
or 53.4% primarily due to an increase in revenue earned on
management of the Companys military housing ventures at
Fort Lewis and McChord Air Force Base, as well as a
decrease in asset management expenses, partially offset by the
unwinding of the Companys institutional joint ventures
during 2010 (see Note 6 in the Notes to Consolidated
Financial Statements for further discussion).
Property management expenses from continuing operations include
off-site expenses associated with the self-management of the
Companys properties as well as management fees paid to any
third party management companies. These expenses increased
approximately $9.2 million or 12.8%. This increase is
primarily attributable to an increase in payroll-related costs
(due primarily to higher health insurance and bonus costs,
acceleration of long-term compensation expense for retirement
eligible employees and the creation of the Companys
central business group, which moved administrative functions
off-site), legal and professional fees, education/conference
expenses, real estate tax consulting fees and travel expenses.
37
Depreciation expense from continuing operations, which includes
depreciation on non-real estate assets, increased approximately
$97.4 million or 17.4% primarily as a result of additional
depreciation expense on properties acquired in 2009 and 2010,
development properties placed in service and capital
expenditures for all properties owned.
General and administrative expenses from continuing operations,
which include corporate operating expenses, increased
approximately $0.9 million or 2.3% primarily due to higher
overall payroll-related costs (due primarily to higher bonus
costs), partially offset by lower tax compliance fees and office
rents. The Company anticipates that general and administrative
expenses will approximate $40.0 million to
$42.0 million for the year ending December 31, 2011.
The above assumption is based on current expectations and is
forward-looking.
Impairment from continuing operations increased approximately
$34.3 million due to a $45.4 million impairment charge
taken during the fourth quarter of 2010 on land held for
development related to two potential development projects
compared to an $11.1 million impairment charge taken during
2009 on land held for development. See Note 20 in the Notes
to Consolidated Financial Statements for further discussion.
Interest and other income from continuing operations decreased
approximately $11.1 million or 67.0% primarily as a result
of a decrease in interest earned on cash and cash equivalents
and investment securities due to lower interest rates during the
year ended December 31, 2010 and lower overall balances as
well as gains on debt extinguishment and the sale of investment
securities recognized during the year ended December 31,
2009 that did not reoccur in 2010, partially offset by an
increase in insurance/litigation settlement proceeds. The
Company anticipates that interest and other income will
approximate $2.0 million to $3.0 million for the year
ending December 31, 2011. The above assumption is based on
current expectations and is forward-looking.
Other expenses from continuing operations increased
approximately $5.4 million or 83.9% primarily due to an
increase in the expensing of overhead (pursuit cost write-offs)
as a result of the Companys decision to reduce its
development activities in prior periods as well as an increase
in property acquisition costs incurred in conjunction with the
Companys significantly higher acquisition volume in 2010.
Interest expense from continuing operations, including
amortization of deferred financing costs, decreased
approximately $27.8 million or 5.5% primarily as a result
of lower overall debt balances and higher debt extinguishment
costs due to the significant debt repurchases in 2009 and lower
rates in 2010, partially offset by interest expense on the
$500.0 million mortgage pool that closed in 2009, the
$600.0 million of unsecured notes that closed in July 2010
and lower capitalized interest. During the year ended
December 31, 2010, the Company capitalized interest costs
of approximately $13.0 million as compared to
$34.9 million for the year ended December 31, 2009.
This capitalization of interest primarily relates to
consolidated projects under development. The effective interest
cost on all indebtedness for the year ended December 31,
2010 was 5.14% as compared to 5.62% for the year ended
December 31, 2009. The Company anticipates that interest
expense (excluding debt extinguishment costs and convertible
debt discounts) will approximate $470.0 million to
$480.0 million for the year ending December 31, 2011.
The above assumption is based on current expectations and is
forward-looking.
Income and other tax expense from continuing operations
decreased approximately $2.5 million or 88.1% primarily due
to a decrease in franchise taxes for Texas and a decrease in
business taxes for Washington, D.C. The Company anticipates
that income and other tax expense will approximate
$0.5 million to $1.5 million for the year ending
December 31, 2011. The above assumption is based on current
expectations and is forward-looking.
Loss from investments in unconsolidated entities decreased
approximately $2.1 million or 73.9% as compared to the year
ended December 31, 2009 primarily due to the Companys
$1.8 million share of defeasance costs incurred in
conjunction with the extinguishment of cross-collateralized
mortgage debt on one of the Companys partially owned
unconsolidated joint ventures taken during the year ended
December 31, 2009 that did not reoccur in 2010.
Net gain on sales of unconsolidated entities increased
approximately $17.4 million primarily due to larger gains
on sale and revaluation of seven previously unconsolidated
properties that were acquired from the Companys joint
venture partner and the gain on sale for 27 properties sold
during the year ended December 31, 2010 compared with
unconsolidated properties sold in the same period in 2009.
Net loss on sales of land parcels increased approximately
$1.4 million primarily due to the loss on sale of one land
parcel during the year ended December 31, 2010.
Discontinued operations, net decreased approximately
$63.3 million or 16.7% between the periods under
comparison. This decrease is primarily due to lower gains from
property sales during the year ended December 31, 2010
compared to the same period in 2009 and the operations of those
properties. In addition, properties sold in 2010 reflect
operations for none of or a
38
partial period in 2010 in contrast to a full or partial period
in 2009. See Note 13 in the Notes to Consolidated Financial
Statements for further discussion.
Comparison
of the year ended December 31, 2009 to the year ended
December 31, 2008
For the year ended December 31, 2009, the Company reported
diluted earnings per share of $1.27 compared to $1.46 per share
for the year ended December 31, 2008. The difference is
primarily due to the following:
|
|
|
|
n
|
$57.6 million in lower net
gains on sales of discontinued operations in 2009 vs. 2008;
|
|
|
n
|
$84.0 million in lower
property NOI in 2009 vs. 2008, primarily driven by
$51.6 million in lower same store NOI and dilution from
transaction activities, partially offset by higher NOI
contributions from
lease-up
properties; and
|
|
|
n
|
Partially offset by
$105.3 million in lower impairment losses in 2009 vs. 2008.
|
For the year ended December 31, 2009, income from
continuing operations increased approximately $43.0 million
when compared to the year ended December 31, 2008. The
increase in continuing operations is discussed below.
Revenues from the 2009 Same Store Properties decreased
$52.4 million primarily as a result of a decrease in
average rental rates charged to residents and a decrease in
occupancy. Expenses from the 2009 Same Store Properties
decreased $0.8 million primarily due to lower property
management costs, partially offset by higher real estate taxes
and utility costs. The following tables provide comparative same
store results and statistics for the 2009 Same Store Properties:
2009 vs.
2008
Same Store Results/Statistics
$ in thousands (except for Average Rental Rate)
113,598 Same Store Units
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results
|
|
|
Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
|
|
|
|
|
|
|
|
Description
|
|
Revenues
|
|
|
Expenses
|
|
|
NOI
|
|
|
Rate (1)
|
|
|
Occupancy
|
|
|
Turnover
|
|
|
2009
|
|
$
|
1,725,774
|
|
|
$
|
644,294
|
|
|
$
|
1,081,480
|
|
|
$
|
1,352
|
|
|
|
93.8%
|
|
|
|
61.0%
|
|
2008
|
|
$
|
1,778,183
|
|
|
$
|
645,123
|
|
|
$
|
1,133,060
|
|
|
$
|
1,383
|
|
|
|
94.5%
|
|
|
|
63.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
$
|
(52,409)
|
|
|
$
|
(829)
|
|
|
$
|
(51,580)
|
|
|
$
|
(31)
|
|
|
|
(0.7%)
|
|
|
|
(2.7%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
|
(2.9%)
|
|
|
|
(0.1%)
|
|
|
|
(4.6%)
|
|
|
|
(2.2%)
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Average rental rate is defined as
total rental revenues divided by the weighted average occupied
units for the period.
|
The following table provides comparative same store operating
expenses for the 2009 Same Store Properties:
2009 vs.
2008
Same Store Operating Expenses
$ in thousands 113,598 Same Store Units
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Actual
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
Actual
|
|
|
Actual
|
|
|
$
|
|
|
%
|
|
|
Operating
|
|
|
|
2009
|
|
|
2008
|
|
|
Change
|
|
|
Change
|
|
|
Expenses
|
|
|
Real estate taxes
|
|
$
|
173,113
|
|
|
$
|
171,234
|
|
|
$
|
1,879
|
|
|
|
1.1
|
%
|
|
|
26.9
|
%
|
On-site
payroll (1)
|
|
|
155,912
|
|
|
|
156,601
|
|
|
|
(689
|
)
|
|
|
(0.4
|
%)
|
|
|
24.2
|
%
|
Utilities (2)
|
|
|
100,184
|
|
|
|
99,045
|
|
|
|
1,139
|
|
|
|
1.1
|
%
|
|
|
15.5
|
%
|
Repairs and maintenance (3)
|
|
|
94,556
|
|
|
|
95,142
|
|
|
|
(586
|
)
|
|
|
(0.6
|
%)
|
|
|
14.7
|
%
|
Property management costs (4)
|
|
|
63,854
|
|
|
|
67,126
|
|
|
|
(3,272
|
)
|
|
|
(4.9
|
%)
|
|
|
9.9
|
%
|
Insurance
|
|
|
21,689
|
|
|
|
20,890
|
|
|
|
799
|
|
|
|
3.8
|
%
|
|
|
3.4
|
%
|
Leasing and advertising
|
|
|
15,664
|
|
|
|
15,043
|
|
|
|
621
|
|
|
|
4.1
|
%
|
|
|
2.4
|
%
|
Other
on-site
operating expenses (5)
|
|
|
19,322
|
|
|
|
20,042
|
|
|
|
(720
|
)
|
|
|
(3.6
|
%)
|
|
|
3.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store operating expenses
|
|
$
|
644,294
|
|
|
$
|
645,123
|
|
|
$
|
(829
|
)
|
|
|
(0.1
|
%)
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
On-site
payroll Includes payroll and related expenses for
on-site
personnel including property managers, leasing consultants and
maintenance staff.
|
39
|
|
|
(2)
|
|
Utilities Represents
gross expenses prior to any recoveries under the Resident
Utility Billing System (RUBS). Recoveries are
reflected in rental income.
|
(3)
|
|
Repairs and maintenance
Includes general maintenance costs, unit turnover costs
including interior painting, routine landscaping, security,
exterminating, fire protection, snow removal, elevator, roof and
parking lot repairs and other miscellaneous building repair
costs.
|
(4)
|
|
Property management
costs Includes payroll and related expenses for
departments, or portions of departments, that directly support
on-site
management. These include such departments as regional and
corporate property management, property accounting, human
resources, training, marketing and revenue management,
procurement, real estate tax, property legal services and
information technology.
|
(5)
|
|
Other
on-site
operating expenses Includes administrative costs
such as office supplies, telephone and data charges and
association and business licensing fees.
|
Non-same store operating results increased approximately
$34.3 million or 79.4% and consist primarily of properties
acquired in calendar years 2008 and 2009, as well as operations
from the Companys completed development properties and our
corporate housing business. While the operations of the non-same
store assets have been negatively impacted during the year ended
December 31, 2009 similar to the same store assets, the
non-same store assets have contributed a greater percentage of
total NOI to the Companys overall operating results
primarily due to increasing occupancy for properties in
lease-up and
a longer ownership period in 2009 than 2008. This increase
primarily resulted from:
|
|
|
|
n
|
Development and other
miscellaneous properties in
lease-up of
$22.4 million;
|
|
|
n
|
Newly stabilized development and
other miscellaneous properties of $1.6 million;
|
|
|
n
|
Properties acquired in 2008 and
2009 of $11.9 million; and
|
|
|
n
|
Partially offset by operating
activities from other miscellaneous operations.
|
See also Note 19 in the Notes to Consolidated Financial
Statements for additional discussion regarding the
Companys segment disclosures.
Fee and asset management revenues, net of fee and asset
management expenses, increased approximately $0.1 million
or 3.4% primarily due to an increase in revenue earned on
management of the Companys military housing ventures at
Fort Lewis and McChord Air Force Base, as well as a
decrease in asset management expenses. As of December 31,
2009 and 2008, the Company managed 12,681 apartment units and
14,485 apartment units, respectively, primarily for
unconsolidated entities and its military housing ventures at
Fort Lewis and McChord.
Property management expenses from continuing operations include
off-site expenses associated with the self-management of the
Companys properties as well as management fees paid to any
third party management companies. These expenses decreased
approximately $5.1 million or 6.7%. This decrease is
primarily attributable to lower overall payroll-related costs as
a result of a decrease in the number of properties in the
Companys portfolio, as well as decreases in temporary
help/contractors, telecommunications and travel expenses.
Depreciation expense from continuing operations, which includes
depreciation on non-real estate assets, increased approximately
$23.0 million or 4.3% primarily as a result of additional
depreciation expense on properties acquired in 2008 and 2009,
development properties placed in service and capital
expenditures for all properties owned.
General and administrative expenses from continuing operations,
which include corporate operating expenses, decreased
approximately $6.0 million or 13.3% primarily due to lower
overall payroll-related costs as a result of a decrease in the
number of properties in the Companys portfolio, as well as
a $2.9 million decrease in severance related costs in 2009
and a decrease in tax consulting costs.
Impairment from continuing operations decreased approximately
$105.3 million due to an $11.1 million impairment
charge taken during 2009 on a land parcel held for development
compared to a $116.4 million impairment charge taken in the
fourth quarter of 2008 on land held for development related to
five potential development projects that are no longer being
pursued. See Note 20 in the Notes to Consolidated Financial
Statements for further discussion.
Interest and other income from continuing operations decreased
approximately $16.8 million or 50.3% primarily as a result
of an $18.7 million gain recognized during 2008 related to
the partial debt extinguishment of the Companys notes
compared to a $4.5 million gain recognized in 2009 (see
Note 9). In addition, interest earned on cash and cash
equivalents decreased due to a decrease in interest rates and
because the Company received less insurance/litigation
settlement proceeds and forfeited deposits in 2009, partially
offset by a $4.9 million gain on the sale of investment
securities realized in 2009.
Other expenses from continuing operations increased
approximately $0.7 million or 12.6% primarily due to an
increase in transaction costs incurred in conjunction with the
Companys acquisition of two properties consisting of 566
apartment units from unaffiliated parties, as well as expensing
transaction costs associated with the Companys acquisition
of all of its partners interests in five previously
partially owned properties consisting of 1,587 apartment units
in 2009.
40
Interest expense from continuing operations, including
amortization of deferred financing costs, increased
approximately $16.9 million or 3.4% primarily as a result
of an increase in debt extinguishment costs and lower
capitalized interest. During the year ended December 31,
2009, the Company capitalized interest costs of approximately
$34.9 million as compared to $60.1 million for the
year ended December 31, 2008. This capitalization of
interest primarily relates to consolidated projects under
development. The effective interest cost on all indebtedness for
the year ended December 31, 2009 was 5.62% as compared to
5.56% for the year ended December 31, 2008.
Income and other tax expense from continuing operations
decreased approximately $2.5 million or 46.9% primarily due
to a change in the estimate for Texas state taxes and lower
overall state income taxes, partially offset by an increase in
business taxes for Washington, D.C.
Loss from investments in unconsolidated entities increased
approximately $2.7 million as compared to the year ended
December 31, 2008 primarily due to the Companys
$1.8 million share of defeasance costs incurred in
conjunction with the extinguishment of cross-collateralized
mortgage debt on one of the Companys partially owned
unconsolidated joint ventures as well as a decline in the
operating performance of these properties.
Net gain on sales of unconsolidated entities increased
approximately $7.8 million as the Company sold seven
unconsolidated properties in 2009 (inclusive of the one property
where the Company acquired its partners interest) compared
to three unconsolidated properties in 2008.
Net gain on sales of land parcels decreased approximately
$3.0 million due to the sale of vacant land located in
Florida during the year ended December 31, 2008 versus no
land sales in 2009.
Discontinued operations, net decreased approximately
$97.4 million or 20.4% between the periods under
comparison. This decrease is primarily due to lower gains from
property sales during the year ended December 31, 2009
compared to the same period in 2008 and the operations of those
properties. In addition, properties sold in 2009 reflect
operations for a partial period in 2009 in contrast to a full
period in 2008. See Note 13 in the Notes to Consolidated
Financial Statements for further discussion.
Liquidity
and Capital Resources
For
the Year Ended December 31, 2010
As of January 1, 2010, the Company had approximately
$193.3 million of cash and cash equivalents, its restricted
1031 exchange proceeds totaled $244.3 million and it had
$1.37 billion available under its revolving credit facility
(net of $56.7 million which was restricted/dedicated to
support letters of credit and $75.0 million which had been
committed by a now bankrupt financial institution and is not
available for borrowing). After taking into effect the various
transactions discussed in the following paragraphs and the net
cash provided by operating activities, the Companys cash
and cash equivalents balance at December 31, 2010 was
approximately $431.4 million, its restricted 1031 exchange
proceeds totaled $103.9 million and the amount available on
the Companys revolving credit facility was
$1.28 billion (net of $147.3 million which was
restricted/dedicated to support letters of credit and net of the
$75.0 million discussed above).
During the year ended December 31, 2010, the Company
generated proceeds from various transactions, which included the
following:
|
|
|
|
n
|
Disposed of 35 consolidated
properties, 27 unconsolidated properties, 2 condominium units
and one land parcel, receiving net proceeds of approximately
$699.6 million;
|
|
|
n
|
Obtained $173.6 million in
new mortgage financing;
|
|
|
n
|
Issued $600.0 million of
unsecured notes receiving net proceeds of $595.4 million
before underwriting fees and other expenses; and
|
|
|
n
|
Issued approximately
8.8 million Common Shares (including shares issued under
the ATM program see further discussion below) and
received net proceeds of $406.2 million.
|
During the year ended December 31, 2010, the above proceeds
were primarily utilized to:
|
|
|
|
n
|
Acquire 16 rental properties
and six land parcels for approximately $1.2 billion;
|
|
|
n
|
Acquire the 75% equity interest it
did not own in seven previously unconsolidated properties
consisting of 1,811 apartment units in exchange for an
approximate $26.9 million payment to its joint venture
partner (net of $3.1 million in cash acquired);
|
|
|
n
|
Invest $131.3 million
primarily in development projects;
|
41
|
|
|
|
n
|
Repurchase 58,130 Common Shares,
utilizing cash of $1.9 million (see Note 3);
|
|
|
n
|
Repay $652.1 million of
mortgage loans; and
|
|
|
n
|
Settle a forward starting swap,
utilizing cash of $10.0 million.
|
In September 2009, the Company announced the establishment of an
At-The-Market
(ATM) share offering program which would allow the
Company to sell up to 17.0 million Common Shares from time
to time over the next three years into the existing trading
market at current market prices as well as through negotiated
transactions. The Company may, but shall have no obligation to,
sell Common Shares through the ATM share offering program in
amounts and at times to be determined by the Company. Actual
sales will depend on a variety of factors to be determined by
the Company from time to time, including (among others) market
conditions, the trading price of the Companys Common
Shares and determinations of the appropriate sources of funding
for the Company. During the year ended December 31, 2010,
the Company issued approximately 6.2 million Common Shares
at an average price of $47.45 per share for total consideration
of approximately $291.9 million through the ATM share
offering program. During the year ended December 31, 2009,
the Company issued approximately 3.5 million Common Shares
at an average price of $35.38 per share for total consideration
of approximately $123.7 million through the ATM share
offering program. In addition, during the first quarter of 2011
through January 13, 2011, the Company has issued
approximately 3.0 million Common Shares at an average price
of $50.84 per share for total consideration of approximately
$154.5 million. The Company has not issued any shares under
this program since January 13, 2011. Through
February 16, 2011, the Company has cumulatively issued
approximately 12.7 million Common Shares at an average
price of $44.94 per share for total consideration of
approximately $570.1 million. Including its recently filed
prospectus supplement which added 5,687,478 Common Shares, the
Company has 10.0 million Common Shares remaining available
for issuance under the ATM program.
Depending on its analysis of market prices, economic conditions
and other opportunities for the investment of available capital,
the Company may repurchase its Common Shares pursuant to its
existing share repurchase program authorized by the Board of
Trustees. The Company repurchased $1.9 million
(58,130 shares at an average price per share of $32.46) of
its Common Shares (all related to the vesting of employee
restricted shares) during the year ended December 31, 2010.
As of December 31, 2010, the Company had authorization to
repurchase an additional $464.6 million of its shares. See
Note 3 in the Notes to Consolidated Financial Statements
for further discussion.
Depending on its analysis of prevailing market conditions,
liquidity requirements, contractual restrictions and other
factors, the Company may from time to time seek to repurchase
and retire its outstanding debt in open market or privately
negotiated transactions.
The Companys total debt summary and debt maturity
schedules as of December 31, 2010 are as follows:
Debt
Summary as of December 31, 2010
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
|
|
|
Weighted
|
|
|
Average
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
Maturities
|
|
|
|
Amounts (1)
|
|
|
% of Total
|
|
|
Rates (1)
|
|
|
(years)
|
|
|
Secured
|
|
$
|
4,762,896
|
|
|
|
47.9
|
%
|
|
|
4.79
|
%
|
|
|
8.1
|
|
Unsecured
|
|
|
5,185,180
|
|
|
|
52.1
|
%
|
|
|
4.96
|
%
|
|
|
4.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
9,948,076
|
|
|
|
100.0
|
%
|
|
|
4.88
|
%
|
|
|
6.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Rate Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured Conventional
|
|
$
|
3,831,393
|
|
|
|
38.5
|
%
|
|
|
5.68
|
%
|
|
|
6.9
|
|
Unsecured Public/Private
|
|
|
4,375,860
|
|
|
|
44.0
|
%
|
|
|
5.78
|
%
|
|
|
5.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Rate Debt
|
|
|
8,207,253
|
|
|
|
82.5
|
%
|
|
|
5.73
|
%
|
|
|
5.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floating Rate Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured Conventional
|
|
|
326,009
|
|
|
|
3.3
|
%
|
|
|
2.56
|
%
|
|
|
0.7
|
|
Secured Tax Exempt
|
|
|
605,494
|
|
|
|
6.1
|
%
|
|
|
0.48
|
%
|
|
|
20.4
|
|
Unsecured Public/Private
|
|
|
809,320
|
|
|
|
8.1
|
%
|
|
|
1.72
|
%
|
|
|
1.3
|
|
Unsecured Revolving Credit Facility
|
|
|
-
|
|
|
|
-
|
|
|
|
0.66
|
%
|
|
|
1.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floating Rate Debt
|
|
|
1,740,823
|
|
|
|
17.5
|
%
|
|
|
1.39
|
%
|
|
|
7.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
9,948,076
|
|
|
|
100.0
|
%
|
|
|
4.88
|
%
|
|
|
6.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Net of the effect of any derivative
instruments. Weighted average rates are for the year ended
December 31, 2010.
|
Note: The Company capitalized interest of approximately
$13.0 million and $34.9 million during the years ended
December 31, 2010 and 2009, respectively.
42
Debt
Maturity Schedule as of December 31, 2010
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
|
|
|
Weighted Average
|
|
|
|
Fixed
|
|
|
Floating
|
|
|
|
|
|
|
|
|
Rates on Fixed
|
|
|
Rates on
|
|
Year
|
|
Rate (1)
|
|
|
Rate (1)
|
|
|
Total
|
|
|
% of Total
|
|
|
Rate Debt (1)
|
|
|
Total Debt (1)
|
|
|
2011
|
|
$
|
906,266
|
(2)
|
|
$
|
759,725
|
(3)
|
|
$
|
1,665,991
|
|
|
|
16.8
|
%
|
|
|
5.28
|
%
|
|
|
3.49
|
%
|
2012
|
|
|
778,181
|
|
|
|
38,128
|
|
|
|
816,309
|
|
|
|
8.2
|
%
|
|
|
5.65
|
%
|
|
|
5.57
|
%
|
2013
|
|
|
269,159
|
|
|
|
309,828
|
|
|
|
578,987
|
|
|
|
5.8
|
%
|
|
|
6.72
|
%
|
|
|
4.89
|
%
|
2014
|
|
|
562,583
|
|
|
|
22,034
|
|
|
|
584,617
|
|
|
|
5.9
|
%
|
|
|
5.31
|
%
|
|
|
5.24
|
%
|
2015
|
|
|
357,713
|
|
|
|
-
|
|
|
|
357,713
|
|
|
|
3.6
|
%
|
|
|
6.40
|
%
|
|
|
6.40
|
%
|
2016
|
|
|
1,167,662
|
|
|
|
-
|
|
|
|
1,167,662
|
|
|
|
11.7
|
%
|
|
|
5.33
|
%
|
|
|
5.33
|
%
|
2017
|
|
|
1,355,830
|
|
|
|
456
|
|
|
|
1,356,286
|
|
|
|
13.6
|
%
|
|
|
5.87
|
%
|
|
|
5.87
|
%
|
2018
|
|
|
80,763
|
|
|
|
44,677
|
|
|
|
125,440
|
|
|
|
1.3
|
%
|
|
|
5.72
|
%
|
|
|
4.28
|
%
|
2019
|
|
|
801,754
|
|
|
|
20,766
|
|
|
|
822,520
|
|
|
|
8.3
|
%
|
|
|
5.49
|
%
|
|
|
5.36
|
%
|
2020
|
|
|
1,671,836
|
|
|
|
809
|
|
|
|
1,672,645
|
|
|
|
16.8
|
%
|
|
|
5.50
|
%
|
|
|
5.50
|
%
|
2021+
|
|
|
255,506
|
|
|
|
544,400
|
|
|
|
799,906
|
|
|
|
8.0
|
%
|
|
|
6.62
|
%
|
|
|
2.67
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
8,207,253
|
|
|
$
|
1,740,823
|
|
|
$
|
9,948,076
|
|
|
|
100.0
|
%
|
|
|
5.63
|
%
|
|
|
4.93
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Net of the effect of any derivative
instruments. Weighted average rates are as of December 31,
2010.
|
(2)
|
|
Includes $482.5 million face
value of 3.85% convertible unsecured debt with a final maturity
of 2026. The notes are callable by the Company on or after
August 18, 2011. The notes are putable by the holders on
August 18, 2011, August 15, 2016 and August 15,
2021.
|
(3)
|
|
Includes the Companys
$500.0 million term loan facility, which originally matured
on October 5, 2010. Effective April 12, 2010, the
Company exercised the first of its two one-year extension
options. As a result, the maturity date is now October 5,
2011 and there is one remaining one-year extension option
exercisable by the Company.
|
The following table provides a summary of the Companys
unsecured debt as of December 31, 2010:
43
Unsecured
Debt Summary as of December 31, 2010
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unamortized
|
|
|
|
|
|
|
Coupon
|
|
Due
|
|
|
|
Face
|
|
|
Premium/
|
|
|
Net
|
|
|
|
Rate
|
|
Date
|
|
|
|
Amount
|
|
|
(Discount)
|
|
|
Balance
|
|
|
Fixed Rate Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.950%
|
|
03/02/11
|
|
|
|
$
|
93,096
|
|
|
$
|
205
|
|
|
$
|
93,301
|
|
|
|
6.625%
|
|
03/15/12
|
|
|
|
|
253,858
|
|
|
|
(229
|
)
|
|
|
253,629
|
|
|
|
5.500%
|
|
10/01/12
|
|
|
|
|
222,133
|
|
|
|
(383
|
)
|
|
|
221,750
|
|
|
|
5.200%
|
|
04/01/13
|
|
(1)
|
|
|
400,000
|
|
|
|
(266
|
)
|
|
|
399,734
|
|
Fair Value Derivative Adjustments
|
|
|
|
|
|
(1)
|
|
|
(300,000
|
)
|
|
|
-
|
|
|
|
(300,000
|
)
|
|
|
5.250%
|
|
09/15/14
|
|
|
|
|
500,000
|
|
|
|
(228
|
)
|
|
|
499,772
|
|
|
|
6.584%
|
|
04/13/15
|
|
|
|
|
300,000
|
|
|
|
(469
|
)
|
|
|
299,531
|
|
|
|
5.125%
|
|
03/15/16
|
|
|
|
|
500,000
|
|
|
|
(278
|
)
|
|
|
499,722
|
|
|
|
5.375%
|
|
08/01/16
|
|
|
|
|
400,000
|
|
|
|
(1,036
|
)
|
|
|
398,964
|
|
|
|
5.750%
|
|
06/15/17
|
|
|
|
|
650,000
|
|
|
|
(3,306
|
)
|
|
|
646,694
|
|
|
|
7.125%
|
|
10/15/17
|
|
|
|
|
150,000
|
|
|
|
(441
|
)
|
|
|
149,559
|
|
|
|
4.750%
|
|
07/15/20
|
|
|
|
|
600,000
|
|
|
|
(4,349
|
)
|
|
|
595,651
|
|
|
|
7.570%
|
|
08/15/26
|
|
|
|
|
140,000
|
|
|
|
-
|
|
|
|
140,000
|
|
|
|
3.850%
|
|
08/15/26
|
|
(2)
|
|
|
482,545
|
|
|
|
(4,992
|
)
|
|
|
477,553
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,391,632
|
|
|
|
(15,772
|
)
|
|
|
4,375,860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floating Rate Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
04/01/13
|
|
(1)
|
|
|
300,000
|
|
|
|
-
|
|
|
|
300,000
|
|
Fair Value Derivative Adjustments
|
|
|
|
|
|
(1)
|
|
|
9,320
|
|
|
|
-
|
|
|
|
9,320
|
|
Term Loan Facility
|
|
LIBOR+0.50%
|
|
10/05/11
|
|
(3)(4)
|
|
|
500,000
|
|
|
|
-
|
|
|
|
500,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
809,320
|
|
|
|
-
|
|
|
|
809,320
|
|
Revolving Credit Facility:
|
|
LIBOR+0.50%
|
|
02/28/12
|
|
(3)(5)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Unsecured Debt
|
|
|
|
|
|
|
|
$
|
5,200,952
|
|
|
$
|
(15,772
|
)
|
|
$
|
5,185,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
$300.0 million in fair value
interest rate swaps converts a portion of the 5.200% notes
due April 1, 2013 to a floating interest rate.
|
(2)
|
|
Convertible notes mature on
August 15, 2026. The notes are callable by the Company on
or after August 18, 2011. The notes are putable by the
holders on August 18, 2011, August 15, 2016 and
August 15, 2021.
|
(3)
|
|
Facilities are private. All other
unsecured debt is public.
|
(4)
|
|
Represents the Companys
$500.0 million term loan facility, which originally matured
on October 5, 2010. Effective April 12, 2010, the
Company exercised the first of its two one-year extension
options. As a result, the maturity date is now October 5,
2011 and there is one remaining one-year extension option
exercisable by the Company.
|
(5)
|
|
As of December 31, 2010, there
was approximately $1.28 billion available on the
Companys unsecured revolving credit facility.
|
An unlimited amount of equity and debt securities remains
available for issuance by EQR and the Operating Partnership
under effective shelf registration statements filed with the
SEC. Most recently, EQR and the Operating Partnership filed a
universal shelf registration statement for an unlimited amount
of equity and debt securities that became automatically
effective upon filing with the SEC in October 2010 (under SEC
regulations enacted in 2005, the registration statement
automatically expires on October 14, 2013 and does not
contain a maximum issuance amount). However, as of
February 16, 2011, issuances under the ATM share offering
program are limited to 10.0 million additional shares.
44
The Companys Consolidated
Debt-to-Total
Market Capitalization Ratio as of December 31, 2010
is presented in the following table. The Company calculates the
equity component of its market capitalization as the sum of
(i) the total outstanding Common Shares and assumed
conversion of all Units at the equivalent market value of the
closing price of the Companys Common Shares on the New
York Stock Exchange and (ii) the liquidation value of all
perpetual preferred shares outstanding.
Capital
Structure as of December 31, 2010
(Amounts in thousands except for share/unit and per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured Debt
|
|
|
|
|
|
|
|
|
|
$
|
4,762,896
|
|
|
|
47.9
|
%
|
|
|
|
|
Unsecured Debt
|
|
|
|
|
|
|
|
|
|
|
5,185,180
|
|
|
|
52.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt
|
|
|
|
|
|
|
|
|
|
|
9,948,076
|
|
|
|
100.0
|
%
|
|
|
38.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (includes Restricted Shares)
|
|
|
290,197,242
|
|
|
|
95.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Units (includes OP Units and LTIP Units)
|
|
|
13,612,037
|
|
|
|
4.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Shares and Units
|
|
|
303,809,279
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share Price at December 31, 2010
|
|
$
|
51.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,782,892
|
|
|
|
98.7
|
%
|
|
|
|
|
Perpetual Preferred Equity (see below)
|
|
|
|
|
|
|
|
|
|
|
200,000
|
|
|
|
1.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Equity
|
|
|
|
|
|
|
|
|
|
|
15,982,892
|
|
|
|
100.0
|
%
|
|
|
61.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Market Capitalization
|
|
|
|
|
|
|
|
|
|
$
|
25,930,968
|
|
|
|
|
|
|
|
100.0
|
%
|
Perpetual
Preferred Equity as of December 31, 2010
(Amounts in thousands except for share and per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual
|
|
|
Annual
|
|
|
Weighted
|
|
|
|
Redemption
|
|
|
Outstanding
|
|
|
Liquidation
|
|
|
Dividend
|
|
|
Dividend
|
|
|
Average
|
|
Series
|
|
Date
|
|
|
Shares
|
|
|
Value
|
|
|
Per Share
|
|
|
Amount
|
|
|
Rate
|
|
|
Preferred Shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8.29% Series K
|
|
|
12/10/26
|
|
|
|
1,000,000
|
|
|
$
|
50,000
|
|
|
$
|
4.145
|
|
|
$
|
4,145
|
|
|
|
|
|
6.48% Series N
|
|
|
6/19/08
|
|
|
|
600,000
|
|
|
|
150,000
|
|
|
|
16.20
|
|
|
|
9,720
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Perpetual Preferred Equity
|
|
|
|
|
|
|
1,600,000
|
|
|
$
|
200,000
|
|
|
|
|
|
|
$
|
13,865
|
|
|
|
6.93
|
%
|
On November 1, 2010, the Company redeemed its Series E
and Series H Cumulative Convertible Preferred Shares for
cash consideration of $0.8 million and 355,539 Common
Shares.
The Company generally expects to meet its short-term liquidity
requirements, including capital expenditures related to
maintaining its existing properties and certain scheduled
unsecured note and mortgage note repayments, through its working
capital, net cash provided by operating activities and
borrowings under its revolving credit facility. Under normal
operating conditions, the Company considers its cash provided by
operating activities to be adequate to meet operating
requirements and payments of distributions. However, there may
be times when the Company experiences shortfalls in its coverage
of distributions, which may cause the Company to consider
reducing its distributions
and/or using
the proceeds from property dispositions or additional financing
transactions to make up the difference. Should these shortfalls
occur for lengthy periods of time or be material in nature, the
Companys financial condition may be adversely affected and
it may not be able to maintain its current distribution levels.
The Company reduced its quarterly common share dividend
beginning with the dividend for the third quarter of 2009, from
$0.4825 per share to $0.3375 per share.
During the fourth quarter of 2010, the Company announced a new
dividend policy which it believes will generate payouts more
closely aligned with the actual annual operating results of the
Companys core business and provide transparency to
investors. The Company intends to pay an annual cash dividend
equal to approximately 65% of Normalized FFO. During the year
ended December 31, 2010, the Company paid $0.3375 per share
for each of the first three quarters and $0.4575 per share for
the fourth quarter to bring the total payment for the year (an
annual rate of $1.47 per share) to approximately 65% of
Normalized FFO. The Company anticipates the expected dividend
payout will be $1.56 to $1.62 per share ($0.3375 per share for
each of the first three quarters with the balance for the fourth
quarter) for the year ending December 31, 2011. The above
assumption is based on current expectations and is
forward-looking. While the new dividend policy makes it less
likely that the Company will over distribute, it will also lead
to a dividend reduction more quickly than in the past should
operating results deteriorate. The Company believes that its
expected 2011 operating cash flow will be sufficient to cover
capital expenditures and distributions.
45
The Company also expects to meet its long-term liquidity
requirements, such as scheduled unsecured note and mortgage debt
maturities, property acquisitions, financing of construction and
development activities and capital improvements through the
issuance of secured and unsecured debt and equity securities,
including additional OP Units, and proceeds received from
the disposition of certain properties as well as joint ventures.
In addition, the Company has significant unencumbered properties
available to secure additional mortgage borrowings in the event
that the public capital markets are unavailable or the cost of
alternative sources of capital is too high. The fair value of
and cash flow from these unencumbered properties are in excess
of the requirements the Company must maintain in order to comply
with covenants under its unsecured notes and line of credit. Of
the $19.7 billion in investment in real estate on the
Companys balance sheet at December 31, 2010,
$12.6 billion or 63.9%, was unencumbered. However, there
can be no assurances that these sources of capital will be
available to the Company in the future on acceptable terms or
otherwise.
The Operating Partnerships credit ratings from
Standard & Poors (S&P),
Moodys and Fitch for its outstanding senior debt are BBB+,
Baal and BBB+, respectively. The Companys equity ratings
from S&P, Moodys and Fitch for its outstanding
preferred equity are BBB+, Baa2 and BBB-, respectively. During
the fourth quarter of 2010, Fitch downgraded the Operating
Partnerships credit rating from A- to BBB+ and the
Companys equity rating from BBB+ to BBB-, which does not
have an effect on the Companys cost of funds. During the
first quarter of 2011, Moodys raised its outlook for both
the Company and the Operating Partnership from negative outlook
to stable outlook.
The Operating Partnership has a $1.425 billion (net of
$75.0 million which had been committed by a now bankrupt
financial institution and is not available for borrowing)
long-term revolving credit facility with available borrowings as
of February 16, 2011 of $1.34 billion (net of
$83.8 million which was restricted/dedicated to support
letters of credit and net of the $75.0 million discussed
above) that matures in February 2012 (See Note 10 in the
Notes to Consolidated Financial Statements for further
discussion). This facility may, among other potential uses, be
used to fund property acquisitions, costs for certain properties
under development and short-term liquidity requirements.
On July 16, 2010, a portion of the parking garage collapsed
at one of the Companys rental properties (Prospect Towers
in Hackensack, New Jersey). The Company estimates that the costs
related to such collapse (both expensed and capitalized),
including providing for residents interim needs, lost
revenue and garage reconstruction, will be approximately
$12.0 million, after insurance reimbursements of
$8.0 million. Costs to rebuild the garage will be
capitalized as incurred. Other costs, like those to accommodate
displaced residents, lost revenue due to a portion of the
property being temporarily unavailable for occupancy and legal
costs, will reduce earnings as they are incurred. Generally,
insurance proceeds will be recorded as increases to earnings as
they are received. An impairment charge of $1.3 million was
recognized to write-off the net book value of the collapsed
garage. During the year ended December 31, 2010, the
Company received approximately $4.0 million in insurance
proceeds which fully offset the impairment charge and partially
offset expenses of $5.5 million that were recorded relating
to this loss and are included in real estate taxes and insurance
on the consolidated statements of operations. In addition, the
Company estimates that its lost revenues approximated
$1.6 million during the year ended December 31, 2010
as a result of the high-rise tower being unoccupied following
the garage collapse.
See Note 20 in the Notes to Consolidated Financial
Statements for discussion of the events which occurred
subsequent to December 31, 2010.
Capitalization
of Fixed Assets and Improvements to Real Estate
Our policy with respect to capital expenditures is generally to
capitalize expenditures that improve the value of the property
or extend the useful life of the component asset of the
property. We track improvements to real estate in two major
categories and several subcategories:
|
|
|
|
n
|
Replacements (inside the
unit). These include:
|
|
|
|
|
n
|
flooring such as carpets,
hardwood, vinyl, linoleum or tile;
|
|
|
n
|
appliances;
|
|
|
n
|
mechanical equipment such as
individual furnace/air units, hot water heaters, etc;
|
|
|
n
|
furniture and fixtures such as
kitchen/bath cabinets, light fixtures, ceiling fans, sinks,
tubs, toilets, mirrors, countertops, etc; and
|
|
|
n
|
blinds/shades.
|
All replacements are depreciated over a five-year estimated
useful life. We expense as incurred all make-ready maintenance
and turnover costs such as cleaning, interior painting of
individual apartment units and the repair of any replacement
item noted above.
|
|
|
|
n
|
Building improvements (outside
the unit). These include:
|
|
|
|
|
n
|
roof replacement and major repairs;
|
46
|
|
|
|
n
|
paving or major resurfacing of
parking lots, curbs and sidewalks;
|
|
|
n
|
amenities and common areas such as
pools, exterior sports and playground equipment, lobbies,
clubhouses, laundry rooms, alarm and security systems and
offices;
|
|
|
n
|
major building mechanical
equipment systems;
|
|
|
n
|
interior and exterior structural
repair and exterior painting and siding;
|
|
|
n
|
major landscaping and grounds
improvement; and
|
|
|
n
|
vehicles and office and
maintenance equipment.
|
All building improvements are depreciated over a five to
ten-year estimated useful life. We capitalize building
improvements and upgrades only if the item: (i) exceeds
$2,500 (selected projects must exceed $10,000);
(ii) extends the useful life of the asset; and
(iii) improves the value of the asset.
For the year ended December 31, 2010, our actual
improvements to real estate totaled approximately
$138.2 million. This includes the following (amounts in
thousands except for apartment unit and per apartment unit
amounts):
Capital
Expenditures to Real Estate
For the Year Ended December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
Avg. Per
|
|
|
|
|
|
Avg. Per
|
|
|
|
|
|
Avg. Per
|
|
|
|
Apartment
|
|
|
|
|
|
Apartment
|
|
|
Building
|
|
|
Apartment
|
|
|
|
|
|
Apartment
|
|
|
|
Units (1)
|
|
|
Replacements (2)
|
|
|
Unit
|
|
|
Improvements
|
|
|
Unit
|
|
|
Total
|
|
|
Unit
|
|
|
Same Store Properties (3)
|
|
|
112,042
|
|
|
$
|
70,620
|
|
|
$
|
630
|
|
|
$
|
54,118
|
|
|
$
|
483
|
|
|
$
|
124,738
|
|
|
$
|
1,113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Same Store Properties (4)
|
|
|
12,824
|
|
|
|
4,180
|
|
|
|
457
|
|
|
|
5,547
|
|
|
|
607
|
|
|
|
9,727
|
|
|
|
1,064
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (5)
|
|
|
-
|
|
|
|
1,509
|
|
|
|
|
|
|
|
2,234
|
|
|
|
|
|
|
|
3,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
124,866
|
|
|
$
|
76,309
|
|
|
|
|
|
|
$
|
61,899
|
|
|
|
|
|
|
$
|
138,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Total Apartment Units
Excludes 4,738 military housing apartment units for which
repairs and maintenance expenses and capital expenditures to
real estate are self-funded and do not consolidate into the
Companys results.
|
(2)
|
|
Replacements Includes
new expenditures inside the apartment units such as appliances,
mechanical equipment, fixtures and flooring, including
carpeting. Replacements for same store properties also include
$31.7 million spent in 2010 on apartment unit
renovations/rehabs (primarily kitchens and baths) on 4,331
apartment units (equating to about $7,300 per apartment unit
rehabbed) designed to reposition these assets for higher rental
levels in their respective markets.
|
(3)
|
|
Same Store Properties
Primarily includes all properties acquired or completed and
stabilized prior to January 1, 2009, less properties
subsequently sold.
|
(4)
|
|
Non-Same Store
Properties Primarily includes all properties
acquired during 2009 and 2010, plus any properties in
lease-up and
not stabilized as of January 1, 2009. Per unit amounts are
based on a weighted average of 9,141 apartment units.
|
(5)
|
|
Other Primarily
includes expenditures for properties sold during the period.
|
For the year ended December 31, 2009, our actual
improvements to real estate totaled approximately
$123.9 million. This includes the following (amounts in
thousands except for apartment unit and per apartment unit
amounts):
Capital
Expenditures to Real Estate
For the Year Ended December 31, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
Avg. Per
|
|
|
|
|
|
Avg. Per
|
|
|
|
|
|
Avg. Per
|
|
|
|
Apartment
|
|
|
|
|
|
Apartment
|
|
|
Building
|
|
|
Apartment
|
|
|
|
|
|
Apartment
|
|
|
|
Units (1)
|
|
|
Replacements (2)
|
|
|
Unit
|
|
|
Improvements
|
|
|
Unit
|
|
|
Total
|
|
|
Unit
|
|
|
Same Store Properties(3)
|
|
|
113,598
|
|
|
$
|
69,808
|
|
|
$
|
614
|
|
|
$
|
44,611
|
|
|
$
|
393
|
|
|
$
|
114,419
|
|
|
$
|
1,007
|
|
Non-Same Store Properties(4)
|
|
|
10,728
|
|
|
|
2,361
|
|
|
|
240
|
|
|
|
3,675
|
|
|
|
374
|
|
|
|
6,036
|
|
|
|
614
|
|
Other(5)
|
|
|
-
|
|
|
|
2,130
|
|
|
|
|
|
|
|
1,352
|
|
|
|
|
|
|
|
3,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
124,326
|
|
|
$
|
74,299
|
|
|
|
|
|
|
$
|
49,638
|
|
|
|
|
|
|
$
|
123,937
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Total Apartment Units
Excludes 8,086 unconsolidated apartment units and 4,595 military
housing apartment units, for which capital expenditures to real
estate are self-funded and do not consolidate into the
Companys results.
|
(2)
|
|
Replacements For same
store properties includes $28.0 million spent on various
assets related to unit renovations/rehabs (primarily kitchens
and baths) designed to reposition these assets for higher rental
levels in their respective markets.
|
(3)
|
|
Same Store Properties
Primarily includes all properties acquired or completed and
stabilized prior to January 1, 2008, less properties
subsequently sold.
|
(4)
|
|
Non-Same Store
Properties Primarily includes all properties
acquired during 2008 and 2009, plus any properties in
lease-up and
not stabilized as of January 1, 2008. Per unit amounts are
based on a weighted average of 9,823 apartment units.
|
(5)
|
|
Other Primarily
includes expenditures for properties sold during the period.
|
47
For 2011, the Company estimates that it will spend approximately
$1,200 per apartment unit of capital expenditures for its same
store properties inclusive of unit renovation/rehab costs, or
$850 per apartment unit excluding unit renovation/rehab costs.
For 2011, the Company estimates that it will spend
$41.0 million rehabbing 5,500 apartment units (equating to
about $7,500 per apartment unit rehabbed). The above assumptions
are based on current expectations and are forward-looking.
During the year ended December 31, 2010, the Companys
total non-real estate capital additions, such as computer
software, computer equipment, and furniture and fixtures and
leasehold improvements to the Companys property management
offices and its corporate offices, were approximately
$3.0 million. The Company expects to fund approximately
$8.5 million in total additions to non-real estate property
in 2011. The above assumption is based on current expectations
and is forward-looking.
Improvements to real estate and additions to non-real estate
property are generally funded from net cash provided by
operating activities and from investment cash flow.
Derivative
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 has a policy of only entering into contracts with
major financial institutions based upon their credit ratings and
other factors. When viewed in conjunction with the underlying
and offsetting exposure that the derivatives are designed to
hedge, the Company has not sustained a material loss from these
instruments nor does it anticipate any material adverse effect
on its net income or financial position in the future from the
use of derivatives it currently has in place.
See Note 11 in the Notes to Consolidated Financial
Statements for additional discussion of derivative instruments
at December 31, 2010.
Other
Total distributions paid in January 2011 amounted to
$141.3 million (excluding distributions on Partially Owned
Properties), which included certain distributions declared
during the fourth quarter ended December 31, 2010.
Off-Balance
Sheet Arrangements and Contractual Obligations
The Company had co-invested in various properties that were
unconsolidated and accounted for under the equity method of
accounting. Management does not believe these investments had a
materially different impact upon the Companys liquidity,
cash flows, capital resources, credit or market risk than its
other property management and ownership activities. During 2000
and 2001, the Company entered into institutional ventures with
an unaffiliated partner. At the respective closing dates, the
Company sold
and/or
contributed 45 properties containing 10,846 apartment units to
these ventures and retained a 25% ownership interest in the
ventures. The Companys joint venture partner contributed
cash equal to 75% of the
agreed-upon
equity value of the properties comprising the ventures, which
was then distributed to the Company. The Companys strategy
with respect to these ventures was to reduce its concentration
of properties in a variety of markets. As of December 31,
2010, the Company had sold its interest in these unconsolidated
ventures with the exception of eight properties consisting of
2,061 apartment units which were acquired by the Company. All of
the related debt encumbering these ventures was extinguished.
As of December 31, 2010, the Company has four projects
totaling 717 apartment units in various stages of development
with estimated completion dates ranging through
September 30, 2012, as well as other completed development
projects that are in various stages of lease up or are
stabilized. The development agreements currently in place are
discussed in detail in Note 18 of the Companys
Consolidated Financial Statements.
See also Notes 2 and 6 in the Notes to Consolidated
Financial Statements for additional discussion regarding the
Companys investments in partially owned entities.
The following table summarizes the Companys contractual
obligations for the next five years and thereafter as of
December 31, 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments Due by Year (in thousands)
|
|
Contractual Obligations
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
Thereafter
|
|
|
Total
|
|
|
Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal (a)
|
|
$
|
1,665,991
|
|
|
$
|
816,309
|
|
|
$
|
578,987
|
|
|
$
|
584,617
|
|
|
$
|
357,713
|
|
|
$
|
5,944,459
|
|
|
$
|
9,948,076
|
|
Interest (b)
|
|
|
460,045
|
|
|
|
407,793
|
|
|
|
367,642
|
|
|
|
344,599
|
|
|
|
309,043
|
|
|
|
1,016,041
|
|
|
|
2,905,163
|
|
Operating Leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minimum Rent Payments (c)
|
|
|
5,478
|
|
|
|
4,285
|
|
|
|
4,431
|
|
|
|
4,736
|
|
|
|
4,729
|
|
|
|
320,928
|
|
|
|
344,587
|
|
Other Long-Term Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Compensation (d)
|
|
|
1,457
|
|
|
|
1,770
|
|
|
|
1,485
|
|
|
|
1,677
|
|
|
|
1,677
|
|
|
|
9,182
|
|
|
|
17,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
2,132,971
|
|
|
$
|
1,230,157
|
|
|
$
|
952,545
|
|
|
$
|
935,629
|
|
|
$
|
673,162
|
|
|
$
|
7,290,610
|
|
|
$
|
13,215,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Amounts include aggregate principal
payments only and includes in 2011 a $500.0 million term
loan that the Company has the right to extend to 2012.
|
(b)
|
|
Amounts include interest expected
to be incurred on the Companys secured and unsecured debt
based on obligations outstanding at December 31, 2010 and
inclusive of capitalized interest. For floating rate debt, the
current rate in effect for the most recent payment through
December 31, 2010 is assumed to be in effect through the
respective maturity date of each instrument.
|
(c)
|
|
Minimum basic rent due for various
office space the Company leases and fixed base rent due on
ground leases for four properties/parcels.
|
(d)
|
|
Estimated payments to the
Companys Chairman, Vice Chairman and two former CEOs
based on planned retirement dates.
|
Critical
Accounting Policies and Estimates
The preparation of financial statements in conformity with
accounting principles generally accepted in the United States
requires management to use judgment in the application of
accounting policies, including making estimates and assumptions.
If our judgment or interpretation of the facts and circumstances
relating to various transactions had been different or different
assumptions were made, it is possible that different accounting
policies would have been applied, resulting in different
financial results or different presentation of our financial
statements.
The Companys significant accounting policies are described
in Note 2 in the Notes to Consolidated Financial
Statements. These policies were followed in preparing the
consolidated financial statements at and for the year ended
December 31, 2010 and are consistent with the year ended
December 31, 2009.
The Company has identified five significant accounting policies
as critical accounting policies. These critical accounting
policies are those that have the most impact on the reporting of
our financial condition and those requiring significant
judgments and estimates. With respect to these critical
accounting policies, management believes that the application of
judgments and estimates is consistently applied and produces
financial information that fairly presents the results of
operations for all periods presented. The five critical
accounting policies are:
Acquisition
of Investment Properties
The Company allocates the purchase price of properties to net
tangible and identified intangible assets acquired based on
their fair values. In making estimates of fair values for
purposes of allocating purchase price, the Company utilizes a
number of sources, including independent appraisals that may be
obtained in connection with the acquisition or financing of the
respective property, our own analysis of recently acquired and
existing comparable properties in our portfolio and other market
data. The Company also considers information obtained about each
property as a result of its pre-acquisition due diligence,
marketing and leasing activities in estimating the fair value of
the tangible and intangible assets acquired.
Impairment
of Long-Lived Assets
The Company periodically evaluates its long-lived assets,
including its investments in real estate, for indicators of
impairment. The judgments regarding the existence of impairment
indicators are based on factors such as operational performance,
market conditions and legal and environmental concerns, as well
as the Companys ability to hold and its intent with regard
to each asset. Future events could occur which would cause the
Company to conclude that impairment indicators exist and an
impairment loss is warranted.
49
Depreciation
of Investment in Real Estate
The Company depreciates the building component of its investment
in real estate over a
30-year
estimated useful life, building improvements over a
5-year to
10-year
estimated useful life and both the furniture, fixtures and
equipment and replacements components over a
5-year
estimated useful life, all of which are judgmental
determinations.
Cost
Capitalization
See the Capitalization of Fixed Assets and Improvements to
Real Estate section for a discussion of the Companys
policy with respect to capitalization vs. expensing of fixed
asset/repair and maintenance costs. In addition, the Company
capitalizes an allocation of the payroll and associated costs of
employees directly responsible for and who spend all of their
time on the supervision of major capital
and/or
renovation projects. These costs are reflected on the balance
sheet as an increase to depreciable property.
For all development projects, the Company uses its professional
judgment in determining whether such costs meet the criteria for
capitalization or must be expensed as incurred. The Company
capitalizes interest, real estate taxes and insurance and
payroll and associated costs for those individuals directly
responsible for and who spend all of their time on development
activities, with capitalization ceasing no later than
90 days following issuance of the certificate of occupancy.
These costs are reflected on the balance sheet as
construction-in-progress
for each specific property. The Company expenses as incurred all
payroll costs of
on-site
employees working directly at our properties, except as noted
above on our development properties prior to certificate of
occupancy issuance and on specific major renovations at selected
properties when additional incremental employees are hired.
Fair
Value of Financial Instruments, Including Derivative
Instruments
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.
Funds
From Operations and Normalized Funds From Operations
For the year ended December 31, 2010, Funds From Operations
(FFO) available to Common Shares and Units and
Normalized FFO available to Common Shares and Units increased
$7.3 million, or 1.2%, and $20.9 million, or 3.2%,
respectively, as compared to the year ended December 31,
2009. For the year ended December 31, 2009, FFO available
to Common Shares and Units and Normalized FFO available to
Common Shares and Units decreased $2.9 million, or 0.5%,
and $73.5 million, or 10.0%, respectively, as compared to
the year ended December 31, 2008.
50
The following is a reconciliation of net income to FFO available
to Common Shares and Units and Normalized FFO available to
Common Shares and Units for each of the five years ended
December 31, 2010:
Funds
From Operations and Normalized Funds From Operations
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|
2006
|
|
|
Net income
|
|
$
|
295,983
|
|
|
$
|
382,029
|
|
|
$
|
436,413
|
|
|
$
|
1,047,356
|
|
|
$
|
1,147,617
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (income) loss attributable to Noncontrolling Interests:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preference Interests and Units
|
|
|
-
|
|
|
|
(9
|
)
|
|
|
(15
|
)
|
|
|
(441
|
)
|
|
|
(2,002
|
)
|
Partially Owned Properties
|
|
|
726
|
|
|
|
558
|
|
|
|
(2,650
|
)
|
|
|
(2,200
|
)
|
|
|
(3,132
|
)
|
Premium on redemption of Preference Interests
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(684
|
)
|
Depreciation
|
|
|
656,633
|
|
|
|
559,271
|
|
|
|
536,283
|
|
|
|
509,358
|
|
|
|
429,737
|
|
Depreciation Non-real estate additions
|
|
|
(6,788
|
)
|
|
|
(7,355
|
)
|
|
|
(8,269
|
)
|
|
|
(8,279
|
)
|
|
|
(7,840
|
)
|
Depreciation Partially Owned and Unconsolidated
Properties
|
|
|
(1,619
|
)
|
|
|
759
|
|
|
|
4,157
|
|
|
|
4,379
|
|
|
|
4,338
|
|
Net (gain) on sales of unconsolidated entities
|
|
|
(28,101
|
)
|
|
|
(10,689
|
)
|
|
|
(2,876
|
)
|
|
|
(2,629
|
)
|
|
|
(370
|
)
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
16,770
|
|
|
|
41,104
|
|
|
|
66,625
|
|
|
|
107,056
|
|
|
|
162,780
|
|
Net (gain) on sales of discontinued operations
|
|
|
(297,956
|
)
|
|
|
(335,299
|
)
|
|
|
(392,857
|
)
|
|
|
(933,013
|
)
|
|
|
(1,025,803
|
)
|
Net incremental gain (loss) on sales of condominium units
|
|
|
1,506
|
|
|
|
(385
|
)
|
|
|
(3,932
|
)
|
|
|
20,771
|
|
|
|
48,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO (1)(3)
|
|
|
637,154
|
|
|
|
629,984
|
|
|
|
632,879
|
|
|
|
742,358
|
|
|
|
753,602
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment and valuation allowances
|
|
|
45,380
|
|
|
|
11,124
|
|
|
|
116,418
|
|
|
|
-
|
|
|
|
30,000
|
|
Property acquisition costs and write-off of pursuit costs (other
expenses)
|
|
|
11,928
|
|
|
|
6,488
|
|
|
|
5,760
|
|
|
|
1,830
|
|
|
|
4,661
|
|
Debt extinguishment (gains) losses, including prepayment
penalties, preferred share redemptions and non-cash convertible
debt discounts
|
|
|
8,594
|
|
|
|
34,333
|
|
|
|
(2,784
|
)
|
|
|
24,004
|
|
|
|
21,563
|
|
(Gains) losses on sales of non-operating assets, net of income
and other tax expense (benefit)
|
|
|
(80
|
)
|
|
|
(5,737
|
)
|
|
|
(979
|
)
|
|
|
(34,450
|
)
|
|
|
(48,592
|
)
|
Other miscellaneous non-comparable items
|
|
|
(6,186
|
)
|
|
|
(171
|
)
|
|
|
(1,725
|
)
|
|
|
(5,767
|
)
|
|
|
(20,880
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized FFO (2)(3)
|
|
$
|
696,790
|
|
|
$
|
676,021
|
|
|
$
|
749,569
|
|
|
$
|
727,975
|
|
|
$
|
740,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO (1)(3)
|
|
$
|
637,154
|
|
|
$
|
629,984
|
|
|
$
|
632,879
|
|
|
$
|
742,358
|
|
|
$
|
753,602
|
|
Preferred distributions
|
|
|
(14,368
|
)
|
|
|
(14,479
|
)
|
|
|
(14,507
|
)
|
|
|
(22,792
|
)
|
|
|
(37,113
|
)
|
Premium on redemption of Preferred Shares
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(6,154
|
)
|
|
|
(3,965
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO available to Common Shares and Units (1)(3)(4)
|
|
$
|
622,786
|
|
|
$
|
615,505
|
|
|
$
|
618,372
|
|
|
$
|
713,412
|
|
|
$
|
712,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized FFO (2)(3)
|
|
$
|
696,790
|
|
|
$
|
676,021
|
|
|
$
|
749,569
|
|
|
$
|
727,975
|
|
|
$
|
740,354
|
|
Preferred distributions
|
|
|
(14,368
|
)
|
|
|
(14,479
|
)
|
|
|
(14,507
|
)
|
|
|
(22,792
|
)
|
|
|
(37,113
|
)
|
Premium on redemption of Preferred Shares
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(6,154
|
)
|
|
|
(3,965
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized FFO available to Common Shares and Units (2)(3)(4)
|
|
$
|
682,422
|
|
|
$
|
661,542
|
|
|
$
|
735,062
|
|
|
$
|
699,029
|
|
|
$
|
699,276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
The National Association of Real
Estate Investment Trusts (NAREIT) defines funds from
operations (FFO) (April 2002 White Paper) as net
income (computed in accordance with accounting principles
generally accepted in the United States (GAAP)),
excluding gains (or losses) from sales of depreciable property,
plus depreciation and amortization, and after adjustments for
unconsolidated partnerships and joint ventures. Adjustments for
unconsolidated partnerships and joint ventures will be
calculated to reflect funds from operations on the same basis.
The April 2002 White Paper states that gain or loss on sales of
property is excluded from FFO for previously depreciated
operating properties only. Once the Company commences the
conversion of apartment units to condominiums, it simultaneously
discontinues depreciation of such property. |
|
(2) |
|
Normalized funds from operations
(Normalized FFO) begins with FFO and
excludes: |
|
|
|
|
n
|
the impact of any expenses
relating to asset impairment and valuation allowances;
|
|
|
n
|
property acquisition and other
transaction costs related to mergers and acquisitions and
pursuit cost write-offs (other expenses);
|
|
|
n
|
gains and losses from early
debt extinguishment, including prepayment penalties, preferred
share redemptions and the cost related to the implied option
value of non-cash convertible debt discounts;
|
51
|
|
|
|
n
|
gains and losses on the sales
of non-operating assets, including gains and losses from land
parcel and condominium sales, net of the effect of income tax
benefits or expenses; and
|
|
|
n
|
other miscellaneous
non-comparable items.
|
|
|
|
(3) |
|
The Company believes that FFO and FFO available to Common
Shares and Units are helpful to investors as supplemental
measures of the operating performance of a real estate company,
because they are recognized measures of performance by the real
estate industry and by excluding gains or losses related to
dispositions of depreciable property and excluding real estate
depreciation (which can vary among owners of identical assets in
similar condition based on historical cost accounting and useful
life estimates), FFO and FFO available to Common Shares and
Units can help compare the operating performance of a
companys real estate between periods or as compared to
different companies. The company also believes that Normalized
FFO and Normalized FFO available to Common Shares and Units are
helpful to investors as supplemental measures of the operating
performance of a real estate company because they allow
investors to compare the companys operating performance to
its performance in prior reporting periods and to the operating
performance of other real estate companies without the effect of
items that by their nature are not comparable from period to
period and tend to obscure the Companys actual operating
results. FFO, FFO available to Common Shares and Units,
Normalized FFO and Normalized FFO available to Common Shares and
Units do not represent net income, net income available to
Common Shares or net cash flows from operating activities in
accordance with GAAP. Therefore, FFO, FFO available to Common
Shares and Units, Normalized FFO and Normalized FFO available to
Common Shares and Units should not be exclusively considered as
alternatives to net income, net income available to Common
Shares or net cash flows from operating activities as determined
by GAAP or as a measure of liquidity. The Companys
calculation of FFO, FFO available to Common Shares and Units,
Normalized FFO and Normalized FFO available to Common Shares and
Units may differ from other real estate companies due to, among
other items, variations in cost capitalization policies for
capital expenditures and, accordingly, may not be comparable to
such other real estate companies. |
|
(4) |
|
FFO available to Common Shares and Units and Normalized FFO
available to Common Shares and Units are calculated on a basis
consistent with net income available to Common Shares and
reflects adjustments to net income for preferred distributions
and premiums on redemption of preferred shares in accordance
with accounting principles generally accepted in the United
States. The equity positions of various individuals and entities
that contributed their properties to the Operating Partnership
in exchange for OP Units are collectively referred to as the
Noncontrolling Interests Operating
Partnership. Subject to certain restrictions, the
Noncontrolling Interests Operating Partnership may
exchange their OP Units for EQR Common Shares on a
one-for-one
basis. |
52
|
|
Item 7A.
|
Quantitative
and Qualitative Disclosures about Market Risk
|
Market risks relating to the Companys financial
instruments result primarily from changes in short-term LIBOR
interest rates and changes in the SIFMA index for tax-exempt
debt. The Company does not have any direct foreign exchange or
other significant market risk.
The Companys exposure to market risk for changes in
interest rates relates primarily to the unsecured revolving and
term credit facilities as well as floating rate tax-exempt debt.
The Company typically incurs fixed rate debt obligations to
finance acquisitions while it typically incurs floating rate
debt obligations to finance working capital needs and as a
temporary measure in advance of securing long-term fixed rate
financing. The Company continuously evaluates its level of
floating rate debt with respect to total debt and other factors,
including its assessment of the current and future economic
environment. To the extent the Company carries substantial cash
balances, this will tend to partially counterbalance any
increase or decrease in interest rates.
The Company also utilizes certain derivative financial
instruments to manage market risk. Interest rate protection
agreements are used to convert floating rate debt to a fixed
rate basis or vice versa as well as to partially lock in rates
on future debt issuances. Derivatives are used for hedging
purposes rather than speculation. The Company does not enter
into financial instruments for trading purposes. See also
Note 11 to the Notes to Consolidated Financial Statements
for additional discussion of derivative instruments.
The fair values of the Companys financial instruments
(including such items in the financial statement captions as
cash and cash equivalents, other assets, lines of credit,
accounts payable and accrued expenses and other liabilities)
approximate their carrying or contract values based on their
nature, terms and interest rates that approximate current market
rates. The fair value of the Companys mortgage notes
payable and unsecured notes were approximately $4.7 billion
and $5.5 billion, respectively, at December 31, 2010.
At December 31, 2010, the Company had total outstanding
floating rate debt of approximately $1.7 billion, or 17.5%
of total debt, net of the effects of any derivative instruments.
If market rates of interest on all of the floating rate debt
permanently increased by 14 basis points (a 10% increase
from the Companys existing weighted average interest
rates), the increase in interest expense on the floating rate
debt would decrease future earnings and cash flows by
approximately $2.4 million. If market rates of interest on
all of the floating rate debt permanently decreased by
14 basis points (a 10% decrease from the Companys
existing weighted average interest rates), the decrease in
interest expense on the floating rate debt would increase future
earnings and cash flows by approximately $2.4 million.
At December 31, 2010, the Company had total outstanding
fixed rate debt of approximately $8.2 billion, or 82.5% of
total debt, net of the effects of any derivative instruments. If
market rates of interest permanently increased by 57 basis
points (a 10% increase from the Companys existing weighted
average interest rates), the estimated fair value of the
Companys fixed rate debt would be approximately
$7.5 billion. If market rates of interest permanently
decreased by 57 basis points (a 10% decrease from the
Companys existing weighted average interest rates), the
estimated fair value of the Companys fixed rate debt would
be approximately $9.1 billion.
At December 31, 2010, the Companys derivative
instruments had a net liability fair value of approximately
$23.3 million. If market rates of interest permanently
increased by 12 basis points (a 10% increase from the
Companys existing weighted average interest rates), the
net liability fair value of the Companys derivative
instruments would be approximately $9.8 million. If market
rates of interest permanently decreased by 12 basis points
(a 10% decrease from the Companys existing weighted
average interest rates), the net liability fair value of the
Companys derivative instruments would be approximately
$37.0 million.
At December 31, 2009, the Company had total outstanding
floating rate debt of approximately $1.8 billion, or 19.7%
of total debt, net of the effects of any derivative instruments.
If market rates of interest on all of the floating rate debt
permanently increased by 13 basis points (a 10% increase
from the Companys existing weighted average interest
rates), the increase in interest expense on the floating rate
debt would decrease future earnings and cash flows by
approximately $2.4 million. If market rates of interest on
all of the floating rate debt permanently decreased by
13 basis points (a 10% decrease from the Companys
existing weighted average interest rates), the decrease in
interest expense on the floating rate debt would increase future
earnings and cash flows by approximately $2.4 million.
At December 31, 2009, the Company had total outstanding
fixed rate debt of approximately $7.5 billion, or 80.3% of
total debt, net of the effects of any derivative instruments. If
market rates of interest permanently increased by 59 basis
points (a 10% increase from the Companys existing weighted
average interest rates), the estimated fair value of the
Companys fixed rate debt would be approximately
$6.9 billion. If market rates of interest permanently
decreased by 59 basis points (a 10% decrease from the
Companys existing weighted average interest rates), the
estimated fair value of the Companys fixed rate debt would
be approximately $8.4 billion.
53
At December 31, 2009, the Companys derivative
instruments had a net asset fair value of approximately
$25.2 million. If market rates of interest permanently
increased by 20 basis points (a 10% increase from the
Companys existing weighted average interest rates), the
net asset fair value of the Companys derivative
instruments would be approximately $35.5 million. If market
rates of interest permanently decreased by 20 basis points
(a 10% decrease from the Companys existing weighted
average interest rates), the net asset fair value of the
Companys derivative instruments would be approximately
$15.9 million.
These amounts were determined by considering the impact of
hypothetical interest rates on the Companys financial
instruments. The foregoing assumptions apply to the entire
amount of the Companys debt and derivative instruments and
do not differentiate among maturities. These analyses do not
consider the effects of the changes in overall economic activity
that could exist in such an environment. Further, in the event
of changes of such magnitude, management would likely take
actions to further mitigate its exposure to the changes.
However, due to the uncertainty of the specific actions that
would be taken and their possible effects, this analysis assumes
no changes in the Companys financial structure or results.
The Company cannot predict the effect of adverse changes in
interest rates on its debt and derivative instruments and,
therefore, its exposure to market risk, nor can there be any
assurance that long-term debt will be available at advantageous
pricing. Consequently, future results may differ materially from
the estimated adverse changes discussed above.
|
|
Item 8.
|
Financial
Statements and Supplementary Data
|
See Index to Consolidated Financial Statements and Schedule on
page F-1
of this
Form 10-K.
|
|
Item 9.
|
Changes
in and Disagreements with Accountants on Accounting and
Financial Disclosure
|
None.
|
|
Item 9A.
|
Controls
and Procedures
|
(a) Evaluation of Disclosure Controls and
Procedures:
Effective as of December 31, 2010, the Company carried out
an evaluation, under the supervision and with the participation
of the Companys management, including the Chief Executive
Officer and Chief Financial Officer, of the effectiveness of the
Companys disclosure controls and procedures pursuant to
Exchange Act
Rules 13a-15
and 15d-15.
Based on that evaluation, the Chief Executive Officer and Chief
Financial Officer concluded that the disclosure controls and
procedures are effective to ensure that information required to
be disclosed by the Company in its Exchange Act filings is
recorded, processed, summarized and reported within the time
periods specified in the SECs rules and forms.
(b) Managements Report on Internal Control
over Financial Reporting:
Equity Residentials management is responsible for
establishing and maintaining adequate internal control over
financial reporting, as such term is defined in
Rule 13a-15(f)
under the Exchange Act. Under the supervision and with the
participation of management, including the Companys Chief
Executive Officer and Chief Financial Officer, management
conducted an evaluation of the effectiveness of internal control
over financial reporting based on the framework in Internal
Control Integrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission.
Because of its inherent limitations, internal control over
financial reporting may not prevent or detect misstatements.
Therefore, even those systems determined to be effective can
only provide reasonable assurance with respect to financial
statement preparation and presentation.
Based on the Companys evaluation under the framework in
Internal Control Integrated Framework, management
concluded that its internal control over financial reporting was
effective as of December 31, 2010. Our internal control
over financial reporting has been audited as of
December 31, 2010 by Ernst & Young LLP, an
independent registered public accounting firm, as stated in
their report which is included herein.
(c) Changes in Internal Control over Financial
Reporting:
There were no changes to the internal control over financial
reporting of the Company identified in connection with the
Companys evaluation referred to above that occurred during
the fourth quarter of 2010 that have materially affected, or are
reasonably likely to materially affect, the Companys
internal control over financial reporting.
|
|
Item 9B.
|
Other
Information
|
None.
54
PART III
Items 10,
11, 12, 13 and 14.
Trustees, Executive Officers and Corporate Governance;
Executive Compensation; Security Ownership of Certain Beneficial
Owners and Management and Related Stockholder Matters; Certain
Relationships and Related Transactions, and Trustee
Independence; and Principal Accounting Fees and Services.
The information required by Item 10, Item 11,
Item 12, Item 13 and Item 14 is incorporated by
reference to, and will be contained in, the Companys Proxy
Statement, which the Company intends to file no later than
120 days after the end of its fiscal year ended
December 31, 2010, and thus these items have been omitted
in accordance with General Instruction G(3) to
Form 10-K.
55
PART IV
|
|
Item 15.
|
Exhibits
and Financial Statement Schedules.
|
(a) The following documents are filed as part of this
Report:
|
|
|
|
(1)
|
Financial Statements: See Index to Consolidated Financial
Statements and Schedule on
page F-1
of this
Form 10-K.
|
|
(2)
|
Exhibits: See the Exhibit Index.
|
|
(3)
|
Financial Statement Schedules: See Index to Consolidated
Financial Statements and Schedule on
page F-1
of this
Form 10-K.
|
56
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned
thereunto duly authorized.
EQUITY RESIDENTIAL
|
|
|
|
By:
|
/s/ David
J. Neithercut
|
David J. Neithercut, President and
Chief Executive Officer
Date: February 24, 2011
EQUITY
RESIDENTIAL
ERP OPERATING LIMITED PARTNERSHIP
POWER OF ATTORNEY
KNOW ALL MEN/WOMEN BY THESE PRESENTS, that each person whose
signature appears below, hereby constitutes and appoints David
J. Neithercut, Mark J. Parrell and Ian S. Kaufman, or any of
them, his or her attorneys-in-fact and agents, with full power
of substitution and resubstitution for him or her in any and all
capacities, to do all acts and things which said attorneys and
agents, or any of them, deem advisable to enable the company to
comply with the Securities Exchange Act of 1934, as amended, and
any requirements or regulations of the Securities and Exchange
Commission in respect thereof, in connection with the
companys filing of an annual report on
Form 10-K
for the companys fiscal year 2010, including specifically,
but without limitation of the general authority hereby granted,
the power and authority to sign his or her name as a trustee or
officer, or both, of the company, as indicated below opposite
his or her signature, to the
Form 10-K,
and any amendment thereto; and each of the undersigned does
hereby fully ratify and confirm all that said attorneys and
agents, or any of them, or the substitute of any of them, shall
do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons
on behalf of the registrant and in the capacities set forth
below and on the dates indicated:
|
|
|
|
|
|
|
Name
|
|
Title
|
|
Date
|
|
|
|
|
|
|
/s/ David
J. Neithercut
David
J. Neithercut
|
|
President, Chief Executive Officer and Trustee
|
|
February 24, 2011
|
|
|
|
|
|
/s/ Mark
J. Parrell
Mark
J. Parrell
|
|
Executive Vice President and Chief Financial Officer
|
|
February 24, 2011
|
|
|
|
|
|
/s/ Ian
S. Kaufman
Ian
S. Kaufman
|
|
Senior Vice President and Chief Accounting Officer
|
|
February 24, 2011
|
|
|
|
|
|
/s/ John
W. Alexander
John
W. Alexander
|
|
Trustee
|
|
February 24, 2011
|
|
|
|
|
|
/s/ Charles
L. Atwood
Charles
L. Atwood
|
|
Trustee
|
|
February 24, 2011
|
|
|
|
|
|
/s/ Linda
Walker Bynoe
Linda
Walker Bynoe
|
|
Trustee
|
|
February 24, 2011
|
|
|
|
|
|
/s/ John
E. Neal
John
E. Neal
|
|
Trustee
|
|
February 24, 2011
|
|
|
|
|
|
/s/ Mark
S. Shapiro
Mark
S. Shapiro
|
|
Trustee
|
|
February 24, 2011
|
|
|
|
|
|
/s/ B.
Joseph White
B.
Joseph White
|
|
Trustee
|
|
February 24, 2011
|
|
|
|
|
|
/s/ Gerald
A. Spector
Gerald
A. Spector
|
|
Vice Chairman of the Board of Trustees
|
|
February 24, 2011
|
|
|
|
|
|
/s/ Samuel
Zell
Samuel
Zell
|
|
Chairman of the Board of Trustees
|
|
February 24, 2011
|
INDEX TO
CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULE
EQUITY
RESIDENTIAL
|
|
|
|
|
PAGE
|
|
|
|
|
FINANCIAL STATEMENTS FILED AS PART OF THIS REPORT
|
|
|
|
|
|
|
|
F-2
|
|
|
|
|
|
F-3
|
|
|
|
|
|
F-4
|
|
|
|
|
|
F-5 to F-6
|
|
|
|
|
|
F-7 to F-9
|
|
|
|
|
|
F-10 to F-11
|
|
|
|
|
|
F-12 to F-44
|
|
|
|
SCHEDULE FILED AS PART OF THIS REPORT
|
|
|
|
|
|
|
|
S-1 to S-14
|
All other schedules have been omitted because they are
inapplicable, not required or the information is included
elsewhere in the consolidated financial statements or notes
thereto.
REPORT OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders
Equity Residential
We have audited the accompanying consolidated balance sheets of
Equity Residential (the Company) as of
December 31, 2010 and 2009 and the related consolidated
statements of operations, changes in equity and cash flows for
each of the three years in the period ended December 31,
2010. Our audits also included the financial statement schedule
listed in the accompanying index to the consolidated financial
statements and schedule. These financial statements and schedule
are the responsibility of the Companys management. Our
responsibility is to express an opinion on these financial
statements and schedule based on our audits.
We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred
to above present fairly, in all material respects, the
consolidated financial position of Equity Residential at
December 31, 2010 and 2009 and the consolidated results of
its operations and its cash flows for each of the three years in
the period ended December 31, 2010, in conformity with
U.S. generally accepted accounting principles. Also, in our
opinion, the related financial statement schedule, when
considered in relation to the basic consolidated financial
statements taken as a whole, presents fairly, in all material
respects, the information set forth therein.
We also have audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States),
Equity Residentials internal control over financial
reporting as of December 31, 2010, based on criteria
established in Internal Control Integrated Framework
issued by the Committee of Sponsoring Organizations of the
Treadway Commission and our report dated February 24, 2011
expressed an unqualified opinion thereon.
ERNST & YOUNG LLP
Chicago, Illinois
February 24, 2011
F-2
REPORT OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
ON INTERNAL CONTROL OVER FINANCIAL REPORTING
To the Board of Trustees and Shareholders
Equity Residential
We have audited Equity Residentials (the
Company) internal control over financial reporting
as of December 31, 2010, based on criteria established in
Internal Control Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission
(the COSO Criteria). Equity Residentials
management is responsible for maintaining effective internal
control over financial reporting and for its assessment of the
effectiveness of internal control over financial reporting
included in the accompanying Managements Report on
Internal Control over Financial Reporting. Our responsibility is
to express an opinion on the effectiveness of the Companys
internal control over financial reporting based on our audit.
We conducted our audit in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether effective internal control
over financial reporting was maintained in all material
respects. Our audit included obtaining an understanding of
internal control over financial reporting, assessing the risk
that a material weakness exists, testing and evaluating the
design and operating effectiveness of internal control based on
the assessed risk, and performing such other procedures as we
considered necessary in the circumstances. We believe that our
audit provides a reasonable basis for our opinion.
A companys internal control over financial reporting is a
process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with
generally accepted accounting principles. A companys
internal control over financial reporting includes those
policies and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company
are being made only in accordance with authorizations of
management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the
companys assets that could have a material effect on the
financial statements.
Because of its inherent limitations, internal control over
financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.
In our opinion, Equity Residential maintained, in all material
respects, effective internal control over financial reporting as
of December 31, 2010, based on the COSO Criteria.
We also have audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States), the
consolidated balance sheets of Equity Residential as of
December 31, 2010 and 2009 and the related consolidated
statements of operations, changes in equity and cash flows for
each of the three years in the period ended December 31,
2010 of Equity Residential and our report dated
February 24, 2011, expressed an unqualified opinion thereon.
ERNST & YOUNG LLP
Chicago, Illinois
February 24, 2011
F-3
EQUITY
RESIDENTIAL
(Amounts in thousands except for share
amounts)
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
ASSETS
|
Investment in real estate
|
|
|
|
|
|
|
|
|
Land
|
|
$
|
4,110,275
|
|
|
$
|
3,650,324
|
|
Depreciable property
|
|
|
15,226,512
|
|
|
|
13,893,521
|
|
Projects under development
|
|
|
130,337
|
|
|
|
668,979
|
|
Land held for development
|
|
|
235,247
|
|
|
|
252,320
|
|
|
|
|
|
|
|
|
|
|
Investment in real estate
|
|
|
19,702,371
|
|
|
|
18,465,144
|
|
Accumulated depreciation
|
|
|
(4,337,357
|
)
|
|
|
(3,877,564
|
)
|
|
|
|
|
|
|
|
|
|
Investment in real estate, net
|
|
|
15,365,014
|
|
|
|
14,587,580
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
431,408
|
|
|
|
193,288
|
|
Investments in unconsolidated entities
|
|
|
3,167
|
|
|
|
6,995
|
|
Deposits restricted
|
|
|
180,987
|
|
|
|
352,008
|
|
Escrow deposits mortgage
|
|
|
12,593
|
|
|
|
17,292
|
|
Deferred financing costs, net
|
|
|
42,033
|
|
|
|
46,396
|
|
Other assets
|
|
|
148,992
|
|
|
|
213,956
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
16,184,194
|
|
|
$
|
15,417,515
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
Liabilities:
|
|
|
|
|
|
|
|
|
Mortgage notes payable
|
|
$
|
4,762,896
|
|
|
$
|
4,783,446
|
|
Notes, net
|
|
|
5,185,180
|
|
|
|
4,609,124
|
|
Lines of credit
|
|
|
-
|
|
|
|
-
|
|
Accounts payable and accrued expenses
|
|
|
39,452
|
|
|
|
58,537
|
|
Accrued interest payable
|
|
|
98,631
|
|
|
|
101,849
|
|
Other liabilities
|
|
|
304,202
|
|
|
|
272,236
|
|
Security deposits
|
|
|
60,812
|
|
|
|
59,264
|
|
Distributions payable
|
|
|
140,905
|
|
|
|
100,266
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
10,592,078
|
|
|
|
9,984,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable Noncontrolling Interests Operating
Partnership
|
|
|
383,540
|
|
|
|
258,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
Shareholders equity:
|
|
|
|
|
|
|
|
|
Preferred Shares of beneficial interest, $0.01 par value;
|
|
|
|
|
|
|
|
|
100,000,000 shares authorized; 1,600,000 shares issued
|
|
|
|
|
|
|
|
|
and outstanding as of December 31, 2010 and 1,950,925
|
|
|
|
|
|
|
|
|
shares issued and outstanding as of December 31, 2009
|
|
|
200,000
|
|
|
|
208,773
|
|
Common Shares of beneficial interest, $0.01 par value;
|
|
|
|
|
|
|
|
|
1,000,000,000 shares authorized; 290,197,242 shares
issued
|
|
|
|
|
|
|
|
|
and outstanding as of December 31, 2010 and 279,959,048
|
|
|
|
|
|
|
|
|
shares issued and outstanding as of December 31, 2009
|
|
|
2,902
|
|
|
|
2,800
|
|
Paid in capital
|
|
|
4,741,521
|
|
|
|
4,477,426
|
|
Retained earnings
|
|
|
203,581
|
|
|
|
353,659
|
|
Accumulated other comprehensive (loss) income
|
|
|
(57,818
|
)
|
|
|
4,681
|
|
|
|
|
|
|
|
|
|
|
Total shareholders equity
|
|
|
5,090,186
|
|
|
|
5,047,339
|
|
Noncontrolling Interests:
|
|
|
|
|
|
|
|
|
Operating Partnership
|
|
|
110,399
|
|
|
|
116,120
|
|
Partially Owned Properties
|
|
|
7,991
|
|
|
|
11,054
|
|
|
|
|
|
|
|
|
|
|
Total Noncontrolling Interests
|
|
|
118,390
|
|
|
|
127,174
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
5,208,576
|
|
|
|
5,174,513
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$
|
16,184,194
|
|
|
$
|
15,417,515
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes
F-4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income
|
|
$
|
1,986,043
|
|
|
$
|
1,846,157
|
|
|
$
|
1,876,273
|
|
Fee and asset management
|
|
|
9,476
|
|
|
|
10,346
|
|
|
|
10,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
1,995,519
|
|
|
|
1,856,503
|
|
|
|
1,886,988
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and maintenance
|
|
|
498,634
|
|
|
|
464,809
|
|
|
|
485,754
|
|
Real estate taxes and insurance
|
|
|
226,718
|
|
|
|
206,247
|
|
|
|
194,671
|
|
Property management
|
|
|
81,126
|
|
|
|
71,938
|
|
|
|
77,063
|
|
Fee and asset management
|
|
|
5,140
|
|
|
|
7,519
|
|
|
|
7,981
|
|
Depreciation
|
|
|
656,633
|
|
|
|
559,271
|
|
|
|
536,283
|
|
General and administrative
|
|
|
39,887
|
|
|
|
38,994
|
|
|
|
44,951
|
|
Impairment
|
|
|
45,380
|
|
|
|
11,124
|
|
|
|
116,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses
|
|
|
1,553,518
|
|
|
|
1,359,902
|
|
|
|
1,463,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
442,001
|
|
|
|
496,601
|
|
|
|
423,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income
|
|
|
5,469
|
|
|
|
16,585
|
|
|
|
33,337
|
|
Other expenses
|
|
|
(11,928
|
)
|
|
|
(6,487
|
)
|
|
|
(5,760
|
)
|
Interest:
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense incurred, net
|
|
|
(470,654
|
)
|
|
|
(496,272
|
)
|
|
|
(482,317
|
)
|
Amortization of deferred financing costs
|
|
|
(10,369
|
)
|
|
|
(12,566
|
)
|
|
|
(9,647
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) before income and other taxes, (loss) from
|
|
|
|
|
|
|
|
|
|
|
|
|
investments in unconsolidated entities, net gain (loss) on sales
of
|
|
|
|
|
|
|
|
|
|
|
|
|
unconsolidated entities and land parcels and discontinued
operations
|
|
|
(45,481
|
)
|
|
|
(2,139
|
)
|
|
|
(40,520
|
)
|
Income and other tax (expense) benefit
|
|
|
(334
|
)
|
|
|
(2,804
|
)
|
|
|
(5,279
|
)
|
(Loss) from investments in unconsolidated entities
|
|
|
(735
|
)
|
|
|
(2,815
|
)
|
|
|
(107
|
)
|
Net gain on sales of unconsolidated entities
|
|
|
28,101
|
|
|
|
10,689
|
|
|
|
2,876
|
|
Net (loss) gain on sales of land parcels
|
|
|
(1,395
|
)
|
|
|
-
|
|
|
|
2,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations
|
|
|
(19,844
|
)
|
|
|
2,931
|
|
|
|
(40,054
|
)
|
Discontinued operations, net
|
|
|
315,827
|
|
|
|
379,098
|
|
|
|
476,467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
295,983
|
|
|
|
382,029
|
|
|
|
436,413
|
|
Net (income) loss attributable to Noncontrolling Interests:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Partnership
|
|
|
(13,099
|
)
|
|
|
(20,305
|
)
|
|
|
(26,126
|
)
|
Preference Interests and Units
|
|
|
-
|
|
|
|
(9
|
)
|
|
|
(15
|
)
|
Partially Owned Properties
|
|
|
726
|
|
|
|
558
|
|
|
|
(2,650
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to controlling interests
|
|
|
283,610
|
|
|
|
362,273
|
|
|
|
407,622
|
|
Preferred distributions
|
|
|
(14,368
|
)
|
|
|
(14,479
|
)
|
|
|
(14,507
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Common Shares
|
|
$
|
269,242
|
|
|
$
|
347,794
|
|
|
$
|
393,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) from continuing operations available to Common Shares
|
|
$
|
(0.11
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
(0.20
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Common Shares
|
|
$
|
0.95
|
|
|
$
|
1.27
|
|
|
$
|
1.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average Common Shares outstanding
|
|
|
282,888
|
|
|
|
273,609
|
|
|
|
270,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) from continuing operations available to Common Shares
|
|
$
|
(0.11
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
(0.20
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Common Shares
|
|
$
|
0.95
|
|
|
$
|
1.27
|
|
|
$
|
1.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average Common Shares outstanding
|
|
|
282,888
|
|
|
|
273,609
|
|
|
|
270,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes
F-5
EQUITY
RESIDENTIAL
CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)
(Amounts in thousands except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
295,983
|
|
|
$
|
382,029
|
|
|
$
|
436,413
|
|
Other comprehensive (loss) income derivative
instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized holding (losses) gains arising during the year
|
|
|
(65,894
|
)
|
|
|
37,676
|
|
|
|
(23,815
|
)
|
Losses reclassified into earnings from other comprehensive income
|
|
|
3,338
|
|
|
|
3,724
|
|
|
|
2,696
|
|
Other
|
|
|
-
|
|
|
|
449
|
|
|
|
-
|
|
Other comprehensive income (loss) other instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized holding gains arising during the year
|
|
|
57
|
|
|
|
3,574
|
|
|
|
1,202
|
|
(Gains) realized during the year
|
|
|
-
|
|
|
|
(4,943
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
|
|
|
233,484
|
|
|
|
422,509
|
|
|
|
416,496
|
|
Comprehensive (income) attributable to Noncontrolling Interests
|
|
|
(12,373
|
)
|
|
|
(19,756
|
)
|
|
|
(28,791
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to controlling interests
|
|
$
|
221,111
|
|
|
$
|
402,753
|
|
|
$
|
387,705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes
F-6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
295,983
|
|
|
$
|
382,029
|
|
|
$
|
436,413
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
673,403
|
|
|
|
600,375
|
|
|
|
602,908
|
|
Amortization of deferred financing costs
|
|
|
10,406
|
|
|
|
13,127
|
|
|
|
9,701
|
|
Amortization of discounts on investment securities
|
|
|
-
|
|
|
|
(1,661
|
)
|
|
|
(365
|
)
|
Amortization of discounts and premiums on debt
|
|
|
(471
|
)
|
|
|
5,857
|
|
|
|
9,730
|
|
Amortization of deferred settlements on derivative instruments
|
|
|
2,804
|
|
|
|
2,228
|
|
|
|
1,317
|
|
Impairment
|
|
|
45,380
|
|
|
|
11,124
|
|
|
|
116,418
|
|
Write-off of pursuit costs
|
|
|
5,272
|
|
|
|
4,838
|
|
|
|
5,535
|
|
Property acquisition costs
|
|
|
6,656
|
|
|
|
1,650
|
|
|
|
225
|
|
Loss from investments in unconsolidated entities
|
|
|
735
|
|
|
|
2,815
|
|
|
|
107
|
|
Distributions from unconsolidated entities return on
capital
|
|
|
61
|
|
|
|
153
|
|
|
|
116
|
|
Net (gain) on sales of investment securities
|
|
|
-
|
|
|
|
(4,943
|
)
|
|
|
-
|
|
Net (gain) on sales of unconsolidated entities
|
|
|
(28,101
|
)
|
|
|
(10,689
|
)
|
|
|
(2,876
|
)
|
Net loss (gain) on sales of land parcels
|
|
|
1,395
|
|
|
|
-
|
|
|
|
(2,976
|
)
|
Net (gain) on sales of discontinued operations
|
|
|
(297,956
|
)
|
|
|
(335,299
|
)
|
|
|
(392,857
|
)
|
Loss (gain) on debt extinguishments
|
|
|
2,457
|
|
|
|
17,525
|
|
|
|
(18,656
|
)
|
Unrealized loss (gain) on derivative instruments
|
|
|
1
|
|
|
|
(3
|
)
|
|
|
500
|
|
Compensation paid with Company Common Shares
|
|
|
18,875
|
|
|
|
17,843
|
|
|
|
22,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in deposits restricted
|
|
|
3,316
|
|
|
|
3,117
|
|
|
|
(1,903
|
)
|
(Increase) decrease in other assets
|
|
|
(9,048
|
)
|
|
|
11,768
|
|
|
|
(1,488
|
)
|
(Decrease) in accounts payable and accrued expenses
|
|
|
(5,454
|
)
|
|
|
(34,524
|
)
|
|
|
(821
|
)
|
(Decrease) in accrued interest payable
|
|
|
(4,000
|
)
|
|
|
(11,997
|
)
|
|
|
(10,871
|
)
|
Increase (decrease) in other liabilities
|
|
|
9,972
|
|
|
|
2,220
|
|
|
|
(19,412
|
)
|
Increase (decrease) in security deposits
|
|
|
1,007
|
|
|
|
(5,091
|
)
|
|
|
2,196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
732,693
|
|
|
|
672,462
|
|
|
|
755,252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in real estate acquisitions
|
|
|
(1,189,210
|
)
|
|
|
(175,531
|
)
|
|
|
(388,083
|
)
|
Investment in real estate development/other
|
|
|
(131,301
|
)
|
|
|
(330,623
|
)
|
|
|
(521,546
|
)
|
Improvements to real estate
|
|
|
(138,208
|
)
|
|
|
(123,937
|
)
|
|
|
(169,838
|
)
|
Additions to non-real estate property
|
|
|
(2,991
|
)
|
|
|
(2,028
|
)
|
|
|
(2,327
|
)
|
Interest capitalized for real estate under development
|
|
|
(13,008
|
)
|
|
|
(34,859
|
)
|
|
|
(60,072
|
)
|
Proceeds from disposition of real estate, net
|
|
|
672,700
|
|
|
|
887,055
|
|
|
|
887,576
|
|
Distributions from unconsolidated entities return of
capital
|
|
|
26,924
|
|
|
|
6,521
|
|
|
|
3,034
|
|
Purchase of investment securities
|
|
|
-
|
|
|
|
(77,822
|
)
|
|
|
(158,367
|
)
|
Proceeds from sale of investment securities
|
|
|
25,000
|
|
|
|
215,753
|
|
|
|
-
|
|
Property acquisition costs
|
|
|
(6,656
|
)
|
|
|
(1,650
|
)
|
|
|
(225
|
)
|
Decrease (increase) in deposits on real estate acquisitions, net
|
|
|
137,106
|
|
|
|
(250,257
|
)
|
|
|
65,395
|
|
Decrease in mortgage deposits
|
|
|
4,699
|
|
|
|
2,437
|
|
|
|
445
|
|
Consolidation of previously unconsolidated properties
|
|
|
(26,854
|
)
|
|
|
-
|
|
|
|
-
|
|
Deconsolidation of previously consolidated properties
|
|
|
11,708
|
|
|
|
-
|
|
|
|
-
|
|
Acquisition of Noncontrolling Interests Partially
Owned Properties
|
|
|
(16,023
|
)
|
|
|
(11,480
|
)
|
|
|
(20
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used for) provided by investing activities
|
|
|
(646,114
|
)
|
|
|
103,579
|
|
|
|
(344,028
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes
F-7
EQUITY
RESIDENTIAL
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Continued)
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan and bond acquisition costs
|
|
$
|
(8,811
|
)
|
|
$
|
(9,291
|
)
|
|
$
|
(9,233
|
)
|
Mortgage notes payable:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds
|
|
|
173,561
|
|
|
|
738,798
|
|
|
|
1,841,453
|
|
Restricted cash
|
|
|
73,232
|
|
|
|
46,664
|
|
|
|
37,262
|
|
Lump sum payoffs
|
|
|
(635,285
|
)
|
|
|
(939,022
|
)
|
|
|
(411,391
|
)
|
Scheduled principal repayments
|
|
|
(16,769
|
)
|
|
|
(17,763
|
)
|
|
|
(24,034
|
)
|
(Loss) gain on debt extinguishments
|
|
|
(2,457
|
)
|
|
|
2,400
|
|
|
|
(81
|
)
|
Notes, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds
|
|
|
595,422
|
|
|
|
-
|
|
|
|
-
|
|
Lump sum payoffs
|
|
|
-
|
|
|
|
(850,115
|
)
|
|
|
(304,043
|
)
|
(Loss) gain on debt extinguishments
|
|
|
-
|
|
|
|
(19,925
|
)
|
|
|
18,737
|
|
Lines of credit:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds
|
|
|
5,513,125
|
|
|
|
-
|
|
|
|
841,000
|
|
Repayments
|
|
|
(5,513,125
|
)
|
|
|
-
|
|
|
|
(980,000
|
)
|
(Payments on) proceeds from settlement of derivative instruments
|
|
|
(10,040
|
)
|
|
|
11,253
|
|
|
|
(26,781
|
)
|
Proceeds from sale of Common Shares
|
|
|
329,452
|
|
|
|
86,184
|
|
|
|
-
|
|
Proceeds from Employee Share Purchase Plan (ESPP)
|
|
|
5,112
|
|
|
|
5,292
|
|
|
|
6,170
|
|
Proceeds from exercise of options
|
|
|
71,596
|
|
|
|
9,136
|
|
|
|
24,634
|
|
Common Shares repurchased and retired
|
|
|
(1,887
|
)
|
|
|
(1,124
|
)
|
|
|
(12,548
|
)
|
Redemption of Preferred Shares
|
|
|
(877
|
)
|
|
|
-
|
|
|
|
-
|
|
Payment of offering costs
|
|
|
(4,657
|
)
|
|
|
(2,536
|
)
|
|
|
(102
|
)
|
Other financing activities, net
|
|
|
(48
|
)
|
|
|
(16
|
)
|
|
|
(16
|
)
|
Contributions Noncontrolling Interests
Partially Owned Properties
|
|
|
222
|
|
|
|
893
|
|
|
|
2,083
|
|
Contributions Noncontrolling Interests
Operating Partnership
|
|
|
-
|
|
|
|
78
|
|
|
|
-
|
|
Distributions:
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
|
|
|
(379,969
|
)
|
|
|
(488,604
|
)
|
|
|
(522,195
|
)
|
Preferred Shares
|
|
|
(14,471
|
)
|
|
|
(14,479
|
)
|
|
|
(14,521
|
)
|
Preference Interests and Units
|
|
|
-
|
|
|
|
(12
|
)
|
|
|
(15
|
)
|
Noncontrolling Interests Operating Partnership
|
|
|
(18,867
|
)
|
|
|
(28,935
|
)
|
|
|
(34,584
|
)
|
Noncontrolling Interests Partially Owned Properties
|
|
|
(2,918
|
)
|
|
|
(2,423
|
)
|
|
|
(3,056
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used for) financing activities
|
|
|
151,541
|
|
|
|
(1,473,547
|
)
|
|
|
428,739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
238,120
|
|
|
|
(697,506
|
)
|
|
|
839,963
|
|
Cash and cash equivalents, beginning of year
|
|
|
193,288
|
|
|
|
890,794
|
|
|
|
50,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of year
|
|
$
|
431,408
|
|
|
$
|
193,288
|
|
|
$
|
890,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes
F-8
EQUITY
RESIDENTIAL
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Continued)
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
SUPPLEMENTAL INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest, net of amounts capitalized
|
|
$
|
475,374
|
|
|
$
|
508,847
|
|
|
$
|
491,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (received) paid for income and other taxes
|
|
$
|
(2,740
|
)
|
|
$
|
3,968
|
|
|
$
|
(1,252
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate acquisitions/dispositions/other:
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans assumed
|
|
$
|
359,082
|
|
|
$
|
-
|
|
|
$
|
24,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation of OP Units issued
|
|
$
|
8,245
|
|
|
$
|
1,034
|
|
|
$
|
849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans (assumed) by purchaser
|
|
$
|
(39,999
|
)
|
|
$
|
(17,313
|
)
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred financing costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in real estate, net
|
|
$
|
(2,768
|
)
|
|
$
|
(3,585
|
)
|
|
$
|
(1,986
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred financing costs, net
|
|
$
|
13,174
|
|
|
$
|
16,712
|
|
|
$
|
11,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of discounts and premiums on debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in real estate, net
|
|
$
|
-
|
|
|
$
|
(3
|
)
|
|
$
|
(6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage notes payable
|
|
$
|
(9,208
|
)
|
|
$
|
(6,097
|
)
|
|
$
|
(6,287
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes, net
|
|
$
|
8,737
|
|
|
$
|
11,957
|
|
|
$
|
16,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred settlements on derivative
instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
$
|
(534
|
)
|
|
$
|
(1,496
|
)
|
|
$
|
(1,379
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive income
|
|
$
|
3,338
|
|
|
$
|
3,724
|
|
|
$
|
2,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss (gain) on derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets
|
|
$
|
13,019
|
|
|
$
|
(33,261
|
)
|
|
$
|
(6,680
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage notes payable
|
|
$
|
(163
|
)
|
|
$
|
(1,887
|
)
|
|
$
|
6,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes, net
|
|
$
|
7,497
|
|
|
$
|
719
|
|
|
$
|
1,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
$
|
45,542
|
|
|
$
|
(3,250
|
)
|
|
$
|
22,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive (loss) income
|
|
$
|
(65,894
|
)
|
|
$
|
37,676
|
|
|
$
|
(23,815
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Payments on) proceeds from settlement of derivative
instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets
|
|
$
|
-
|
|
|
$
|
11,253
|
|
|
$
|
(98
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
$
|
(10,040
|
)
|
|
$
|
-
|
|
|
$
|
(26,683
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidation of previously unconsolidated properties:
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in real estate, net
|
|
$
|
(105,065
|
)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in unconsolidated entities
|
|
$
|
7,376
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits restricted
|
|
$
|
(42,633
|
)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage notes payable
|
|
$
|
112,631
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other assets recorded
|
|
$
|
837
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deconsolidation of previously consolidated properties:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in real estate, net
|
|
$
|
14,875
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in unconsolidated entities
|
|
$
|
(3,167
|
)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivable on sale of Common Shares
|
|
$
|
37,550
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer from notes, net to mortgage notes payable
|
|
$
|
35,600
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes
F-9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
SHAREHOLDERS EQUITY
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
PREFERRED SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of year
|
|
$
|
208,773
|
|
|
$
|
208,786
|
|
|
$
|
209,662
|
|
Redemption of 7.00% Series E Cumulative Convertible
|
|
|
(834
|
)
|
|
|
-
|
|
|
|
-
|
|
Conversion of 7.00% Series E Cumulative Convertible
|
|
|
(7,378
|
)
|
|
|
(13
|
)
|
|
|
(828
|
)
|
Conversion of 7.00% Series H Cumulative Convertible
|
|
|
(561
|
)
|
|
|
-
|
|
|
|
(48
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of year
|
|
$
|
200,000
|
|
|
$
|
208,773
|
|
|
$
|
208,786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON SHARES, $0.01 PAR VALUE
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of year
|
|
$
|
2,800
|
|
|
$
|
2,728
|
|
|
$
|
2,696
|
|
Conversion of Preferred Shares into Common Shares
|
|
|
3
|
|
|
|
-
|
|
|
|
-
|
|
Conversion of OP Units into Common Shares
|
|
|
9
|
|
|
|
27
|
|
|
|
17
|
|
Issuance of Common Shares
|
|
|
61
|
|
|
|
35
|
|
|
|
-
|
|
Exercise of share options
|
|
|
25
|
|
|
|
4
|
|
|
|
10
|
|
Employee Share Purchase Plan (ESPP)
|
|
|
2
|
|
|
|
3
|
|
|
|
2
|
|
Share-based employee compensation expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted/performance shares
|
|
|
2
|
|
|
|
3
|
|
|
|
5
|
|
Common Shares repurchased and retired
|
|
|
-
|
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of year
|
|
$
|
2,902
|
|
|
$
|
2,800
|
|
|
$
|
2,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PAID IN CAPITAL
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of year
|
|
$
|
4,477,426
|
|
|
$
|
4,273,489
|
|
|
$
|
4,134,209
|
|
Common Share Issuance:
|
|
|
|
|
|
|
|
|
|
|
|
|
Conversion of Preferred Shares into Common Shares
|
|
|
7,936
|
|
|
|
13
|
|
|
|
876
|
|
Conversion of OP Units into Common Shares
|
|
|
19,713
|
|
|
|
48,776
|
|
|
|
49,884
|
|
Issuance of Common Shares
|
|
|
291,841
|
|
|
|
123,699
|
|
|
|
-
|
|
Exercise of share options
|
|
|
71,571
|
|
|
|
9,132
|
|
|
|
24,624
|
|
Employee Share Purchase Plan (ESPP)
|
|
|
5,110
|
|
|
|
5,289
|
|
|
|
6,168
|
|
Share-based employee compensation expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance shares
|
|
|
-
|
|
|
|
179
|
|
|
|
(8
|
)
|
Restricted shares
|
|
|
9,779
|
|
|
|
11,129
|
|
|
|
17,273
|
|
Share options
|
|
|
7,421
|
|
|
|
5,996
|
|
|
|
5,846
|
|
ESPP discount
|
|
|
1,290
|
|
|
|
1,303
|
|
|
|
1,289
|
|
Common Shares repurchased and retired
|
|
|
(1,887
|
)
|
|
|
(1,124
|
)
|
|
|
(7,906
|
)
|
Offering costs
|
|
|
(4,657
|
)
|
|
|
(2,536
|
)
|
|
|
(102
|
)
|
Supplemental Executive Retirement Plan (SERP)
|
|
|
8,559
|
|
|
|
27,809
|
|
|
|
(7,304
|
)
|
Acquisition of Noncontrolling Interests Partially
Owned Properties
|
|
|
(16,888
|
)
|
|
|
(1,496
|
)
|
|
|
-
|
|
Change in market value of Redeemable Noncontrolling
Interests Operating Partnership
|
|
|
(129,918
|
)
|
|
|
(14,544
|
)
|
|
|
65,524
|
|
Adjustment for Noncontrolling Interests ownership in Operating
Partnership
|
|
|
(5,775
|
)
|
|
|
(9,688
|
)
|
|
|
(16,884
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of year
|
|
$
|
4,741,521
|
|
|
$
|
4,477,426
|
|
|
$
|
4,273,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes
F-10
EQUITY
RESIDENTIAL
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Continued)
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
SHAREHOLDERS EQUITY (continued)
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
RETAINED EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of year
|
|
$
|
353,659
|
|
|
$
|
456,152
|
|
|
$
|
586,685
|
|
Net income attributable to controlling interests
|
|
|
283,610
|
|
|
|
362,273
|
|
|
|
407,622
|
|
Common Share distributions
|
|
|
(419,320
|
)
|
|
|
(450,287
|
)
|
|
|
(523,648
|
)
|
Preferred Share distributions
|
|
|
(14,368
|
)
|
|
|
(14,479
|
)
|
|
|
(14,507
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of year
|
|
$
|
203,581
|
|
|
$
|
353,659
|
|
|
$
|
456,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of year
|
|
$
|
4,681
|
|
|
$
|
(35,799
|
)
|
|
$
|
(15,882
|
)
|
Accumulated other comprehensive (loss) income
derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized holding (losses) gains arising during the year
|
|
|
(65,894
|
)
|
|
|
37,676
|
|
|
|
(23,815
|
)
|
Losses reclassified into earnings from other comprehensive income
|
|
|
3,338
|
|
|
|
3,724
|
|
|
|
2,696
|
|
Other
|
|
|
-
|
|
|
|
449
|
|
|
|
-
|
|
Accumulated other comprehensive income (loss) other
instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized holding gains arising during the year
|
|
|
57
|
|
|
|
3,574
|
|
|
|
1,202
|
|
(Gains) realized during the year
|
|
|
-
|
|
|
|
(4,943
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of year
|
|
$
|
(57,818
|
)
|
|
$
|
4,681
|
|
|
$
|
(35,799
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONCONTROLLING INTERESTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PARTNERSHIP
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of year
|
|
$
|
116,120
|
|
|
$
|
137,645
|
|
|
$
|
162,185
|
|
Issuance of OP Units to Noncontrolling Interests
|
|
|
8,245
|
|
|
|
1,034
|
|
|
|
849
|
|
Issuance of LTIP Units to Noncontrolling Interests
|
|
|
-
|
|
|
|
78
|
|
|
|
-
|
|
Conversion of OP Units held by Noncontrolling Interests into
|
|
|
|
|
|
|
|
|
|
|
|
|
OP Units held by General Partner
|
|
|
(19,722
|
)
|
|
|
(48,803
|
)
|
|
|
(49,901
|
)
|
Equity compensation associated with Noncontrolling Interests
|
|
|
2,524
|
|
|
|
1,194
|
|
|
|
-
|
|
Net income attributable to Noncontrolling Interests
|
|
|
13,099
|
|
|
|
20,305
|
|
|
|
26,126
|
|
Distributions to Noncontrolling Interests
|
|
|
(20,300
|
)
|
|
|
(25,679
|
)
|
|
|
(33,745
|
)
|
Change in carrying value of Redeemable Noncontrolling
Interests Operating Partnership
|
|
|
4,658
|
|
|
|
20,658
|
|
|
|
15,247
|
|
Adjustment for Noncontrolling Interests ownership in Operating
Partnership
|
|
|
5,775
|
|
|
|
9,688
|
|
|
|
16,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of year
|
|
$
|
110,399
|
|
|
$
|
116,120
|
|
|
$
|
137,645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PREFERENCE INTERESTS AND UNITS
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of year
|
|
$
|
-
|
|
|
$
|
184
|
|
|
$
|
184
|
|
Conversion of Series B Junior Preference Units
|
|
|
-
|
|
|
|
(184
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of year
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PARTIALLY OWNED PROPERTIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of year
|
|
$
|
11,054
|
|
|
$
|
25,520
|
|
|
$
|
26,236
|
|
Net (loss) income attributable to Noncontrolling Interests
|
|
|
(726
|
)
|
|
|
(558
|
)
|
|
|
2,650
|
|
Contributions by Noncontrolling Interests
|
|
|
222
|
|
|
|
893
|
|
|
|
2,083
|
|
Distributions to Noncontrolling Interests
|
|
|
(2,952
|
)
|
|
|
(2,439
|
)
|
|
|
(3,072
|
)
|
Acquisition of Noncontrolling Interests Partially
Owned Properties
|
|
|
175
|
|
|
|
(11,705
|
)
|
|
|
(1,877
|
)
|
Other
|
|
|
218
|
|
|
|
(657
|
)
|
|
|
(500
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of year
|
|
$
|
7,991
|
|
|
$
|
11,054
|
|
|
$
|
25,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes
F-11
Equity Residential (EQR), a Maryland real estate
investment trust (REIT) formed in March 1993, is an
S&P 500 company focused on the acquisition,
development and management of high quality apartment properties
in top United States growth markets. EQR has elected to be taxed
as a REIT.
EQR is the general partner of, and as of December 31, 2010
owned an approximate 95.5% ownership interest in, ERP Operating
Limited Partnership, an Illinois limited partnership (the
Operating Partnership). The Company is structured as
an umbrella partnership REIT (UPREIT) under which
all property ownership and related business operations are
conducted through the Operating Partnership and its
subsidiaries. References to the Company include EQR,
the Operating Partnership and those entities owned or controlled
by the Operating Partnership
and/or EQR.
As of December 31, 2010, the Company, directly or
indirectly through investments in title holding entities, owned
all or a portion of 451 properties located in 17 states and
the District of Columbia consisting of 129,604 apartment units.
The ownership breakdown includes (table does not include various
uncompleted development properties):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apartment
|
|
|
|
Properties
|
|
|
Units
|
|
|
Wholly Owned Properties
|
|
|
425
|
|
|
|
119,634
|
|
Partially Owned Properties Consolidated
|
|
|
24
|
|
|
|
5,232
|
|
Military Housing
|
|
|
2
|
|
|
|
4,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
451
|
|
|
|
129,604
|
|
The Wholly Owned Properties are accounted for under
the consolidation method of accounting. The Company beneficially
owns 100% fee simple title to 422 of the 425 Wholly Owned
Properties and all but one of its wholly owned development
properties and land parcels. The Company owns the building and
improvements and leases the land underlying the improvements
under long-term ground leases that expire in 2026, 2077 and 2101
for the three operating properties, respectively, and 2104 for
one land parcel. These properties are consolidated and reflected
as real estate assets while the ground leases are accounted for
as operating leases.
The Partially Owned Properties
Consolidated are controlled by the Company but have
partners with noncontrolling interests and are accounted for
under the consolidation method of accounting. The Military
Housing properties consist of investments in limited
liability companies that, as a result of the terms of the
operating agreements, are accounted for as management contract
rights with all fees recognized as fee and asset management
revenue.
|
|
2.
|
Summary
of Significant Accounting Policies
|
Basis of
Presentation
Due to the Companys ability as general partner to control
either through ownership or by contract the Operating
Partnership and its subsidiaries, the Operating Partnership and
each such subsidiary has been consolidated with the Company for
financial reporting purposes, except for an unconsolidated
development land parcel and our military housing properties. The
consolidated financial statements also include all variable
interest entities for which the Company is the primary
beneficiary.
Real
Estate Assets and Depreciation of Investment in Real
Estate
Effective for business combinations on or after January 1,
2009, an acquiring entity is required to recognize all assets
acquired and liabilities assumed in a transaction at the
acquisition-date fair value with limited exceptions. In
addition, an acquiring entity is required to expense
acquisition-related costs as incurred (amounts are included in
the other expenses line item in the consolidated statements of
operations), value noncontrolling interests at fair value at the
acquisition date and expense restructuring costs associated with
an acquired business.
The Company allocates the purchase price of properties to net
tangible and identified intangible assets acquired based on
their fair values. In making estimates of fair values for
purposes of allocating purchase price, the Company utilizes a
number of sources, including independent appraisals that may be
obtained in connection with the acquisition or financing of the
respective property, our own analysis of recently acquired and
existing comparable properties in our portfolio and other market
data. The Company also considers information obtained about each
property as a result of its pre-acquisition due diligence,
marketing and
F-12
leasing activities in estimating the fair value of the tangible
and intangible assets acquired. The Company allocates the
purchase price of acquired real estate to various components as
follows:
|
|
|
|
n
|
Land Based on actual
purchase price if acquired separately or market
research/comparables if acquired with an operating property.
|
|
|
n
|
Furniture, Fixtures and
Equipment Ranges between $8,000 and $13,000 per
apartment unit acquired as an estimate of the fair value of the
appliances and fixtures inside an apartment unit. The
per-apartment unit amount applied depends on the type of
apartment building acquired. Depreciation is calculated on the
straight-line method over an estimated useful life of five years.
|
|
|
n
|
In-Place Leases The
Company considers the value of acquired in-place leases and the
amortization period is the average remaining term of each
respective in-place acquired lease.
|
|
|
n
|
Other Intangible
Assets The Company considers whether it has acquired
other intangible assets, including any customer relationship
intangibles and the amortization period is the estimated useful
life of the acquired intangible asset.
|
|
|
n
|
Building Based on the
fair value determined on an as-if vacant basis.
Depreciation is calculated on the straight-line method over an
estimated useful life of thirty years.
|
Replacements inside an apartment unit such as appliances and
carpeting are depreciated over a five-year estimated useful
life. Expenditures for ordinary maintenance and repairs are
expensed to operations as incurred and significant renovations
and improvements that improve
and/or
extend the useful life of the asset are capitalized over their
estimated useful life, generally five to ten years. Initial
direct leasing costs are expensed as incurred as such expense
approximates the deferral and amortization of initial direct
leasing costs over the lease terms. Property sales or
dispositions are recorded when title transfers to unrelated
third parties, contingencies have been removed and sufficient
cash consideration has been received by the Company. Upon
disposition, the related costs and accumulated depreciation are
removed from the respective accounts. Any gain or loss on sale
is recognized in accordance with accounting principles generally
accepted in the United States.
The Company classifies real estate assets as real estate held
for disposition when it is certain a property will be disposed
of (see further discussion below).
The Company classifies properties under development
and/or
expansion and properties in the
lease-up
phase (including land) as
construction-in-progress
until construction has been completed and all certificates of
occupancy permits have been obtained.
Impairment
of Long-Lived Assets
The Company periodically evaluates its long-lived assets,
including its investments in real estate, for indicators of
impairment. The judgments regarding the existence of impairment
indicators are based on factors such as operational performance,
market conditions and legal and environmental concerns, as well
as the Companys ability to hold and its intent with regard
to each asset. Future events could occur which would cause the
Company to conclude that impairment indicators exist and an
impairment loss is warranted.
For long-lived assets to be held and used, the Company compares
the expected future undiscounted cash flows for the long-lived
asset against the carrying amount of that asset. If the sum of
the estimated undiscounted cash flows is less than the carrying
amount of the asset, the Company would record an impairment loss
for the difference between the estimated fair value and the
carrying amount of the asset.
For long-lived assets to be disposed of, an impairment loss is
recognized when the estimated fair value of the asset, less the
estimated cost to sell, is less than the carrying amount of the
asset measured at the time that the Company has determined it
will sell the asset. Long-lived assets held for disposition and
the related liabilities are separately reported, with the
long-lived assets reported at the lower of their carrying
amounts or their estimated fair values, less their costs to
sell, and are not depreciated after reclassification to real
estate held for disposition.
Cost
Capitalization
See the Real Estate Assets and Depreciation of Investment in
Real Estate section for a discussion of the Companys
policy with respect to capitalization vs. expensing of fixed
asset/repair and maintenance costs. In addition, the Company
capitalizes an allocation of the payroll and associated costs of
employees directly responsible for and who spend all of their
time on the
F-13
supervision of major capital
and/or
renovation projects. These costs are reflected on the balance
sheet as an increase to depreciable property.
For all development projects, the Company uses its professional
judgment in determining whether such costs meet the criteria for
capitalization or must be expensed as incurred. The Company
capitalizes interest, real estate taxes and insurance and
payroll and associated costs for those individuals directly
responsible for and who spend all of their time on development
activities, with capitalization ceasing no later than
90 days following issuance of the certificate of occupancy.
These costs are reflected on the balance sheet as
construction-in-progress
for each specific property. The Company expenses as incurred all
payroll costs of
on-site
employees working directly at our properties, except as noted
above on our development properties prior to certificate of
occupancy issuance and on specific major renovations at selected
properties when additional incremental employees are hired.
Cash and
Cash Equivalents
The Company considers all demand deposits, money market accounts
and investments in certificates of deposit and repurchase
agreements purchased with a maturity of three months or less at
the date of purchase to be cash equivalents. The Company
maintains its cash and cash equivalents at financial
institutions. The combined account balances at one or more
institutions typically exceed the Federal Depository Insurance
Corporation (FDIC) insurance coverage, and, as a
result, there is a concentration of credit risk related to
amounts on deposit in excess of FDIC insurance coverage. The
Company believes that the risk is not significant, as the
Company does not anticipate the financial institutions
non-performance.
Investment
Securities
Investment securities are included in other assets in the
consolidated balance sheets. These securities are classified as
held-to-maturity
and carried at amortized cost if management has the positive
intent and ability to hold the securities to maturity.
Otherwise, the securities are classified as
available-for-sale
and carried at estimated fair value with unrealized gains and
losses included in accumulated other comprehensive (loss)
income, a separate component of shareholders equity.
Deferred
Financing Costs
Deferred financing costs include fees and costs incurred to
obtain the Companys lines of credit and long-term
financings. These costs are amortized over the terms of the
related debt. Unamortized financing costs are written off when
debt is retired before the maturity date. The accumulated
amortization of such deferred financing costs was
$43.9 million and $34.6 million at December 31,
2010 and 2009, respectively.
Fair
Value of Financial Instruments, Including Derivative
Instruments
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 has a policy of only entering into contracts with
major financial institutions based upon their credit ratings and
other factors. When viewed in conjunction with the underlying
and offsetting exposure that the derivatives are designed to
hedge, the Company has not sustained a material loss from these
instruments nor does it anticipate any material adverse effect
on its net income or financial position in the future from the
use of derivatives.
The Company recognizes all derivatives as either assets or
liabilities in the consolidated balance sheets and measures
those instruments at fair value. In addition, fair value
adjustments will affect either shareholders equity or net
income depending on whether the derivative instruments qualify
as a hedge for accounting purposes and, if so, the nature of the
hedging activity. When the terms of an underlying transaction
are modified, or when the underlying transaction is terminated
or completed, all changes in the fair value of the instrument
are
marked-to-market
with changes in value included in net income each period until
the instrument matures. Any derivative instrument used for risk
management that does not meet the hedging criteria is
marked-to-market
each period. The Company does not use derivatives for trading or
speculative purposes.
F-14
Revenue
Recognition
Rental income attributable to residential leases is recorded on
a straight-line basis, which is not materially different than if
it were recorded when due from residents and recognized monthly
as it was earned. Leases entered into between a resident and a
property for the rental of an apartment unit are generally
year-to-year,
renewable upon consent of both parties on an annual or monthly
basis. Fee and asset management revenue and interest income are
recorded on an accrual basis.
Share-Based
Compensation
The Company expenses share-based compensation such as restricted
shares and share options. The fair value of the option grants
are recognized over the vesting period of the options. The fair
value for the Companys share options was estimated at the
time the share options were granted using the Black-Scholes
option pricing model with the following weighted average
assumptions:
|
|
|
|
|
|
|
|
|
2010
|
|
2009
|
|
2008
|
|
Expected volatility (1)
|
|
32.4%
|
|
26.8%
|
|
20.3%
|
Expected life (2)
|
|
5 years
|
|
5 years
|
|
5 years
|
Expected dividend yield (3)
|
|
4.85%
|
|
4.68%
|
|
4.95%
|
Risk-free interest rate (4)
|
|
2.29%
|
|
1.89%
|
|
2.67%
|
Option valuation per share
|
|
$6.18
|
|
$3.38
|
|
$4.08
|
|
|
|
(1)
|
|
Expected volatility
Estimated based on the historical volatility of EQRs share
price, on a monthly basis, for a period matching the expected
life of each grant.
|
(2)
|
|
Expected life
Approximates the actual weighted average life of all share
options granted since the Company went public in 1993.
|
(3)
|
|
Expected dividend yield
Calculated by averaging the historical annual yield on EQR
shares for a period matching the expected life of each grant,
with the annual yield calculated by dividing actual dividends by
the average price of EQRs shares in a given year.
|
(4)
|
|
Risk-free interest rate
The most current U.S. Treasury rate available prior to the grant
date for a period matching the expected life of each grant.
|
The valuation method and assumptions are the same as those the
Company used in accounting for option expense in its
consolidated financial statements. The Black-Scholes option
valuation model was developed for use in estimating the fair
value of traded options that have no vesting restrictions and
are fully transferable. This model is only one method of valuing
options and the Companys use of this model should not be
interpreted as an endorsement of its accuracy. Because the
Companys share options have characteristics significantly
different from those of traded options, and because changes in
the subjective input assumptions can materially affect the fair
value estimate, in managements opinion, the existing
models do not necessarily provide a reliable single measure of
the fair value of its share options and the actual value of the
options may be significantly different.
Income
and Other Taxes
Due to the structure of the Company 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.
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, primarily those entities
engaged in condominium conversion and corporate housing
activities and as a result, these entities will incur both
federal and state income taxes on any taxable income of such
entities after consideration of any net operating losses.
Deferred tax assets and liabilities are recognized for future
tax consequences attributable to differences between the
financial statement carrying amounts of existing assets and
liabilities and their respective tax bases. These assets and
liabilities are measured using enacted tax rates for which the
temporary differences are expected to be recovered or settled.
The effects of changes in tax rates on deferred tax assets and
liabilities are recognized in earnings in the period enacted.
The Companys deferred tax assets are generally the result
of tax affected amortization of goodwill, differing depreciable
lives on capitalized assets and the timing of expense
recognition for certain accrued liabilities. As of
December 31, 2010, the Company has recorded a deferred tax
asset of approximately $38.7 million, which is fully offset
by a valuation allowance due to the uncertainty in forecasting
future TRS taxable income.
F-15
The Company provided for income, franchise and excise taxes
allocated as follows in the consolidated statements of
operations for the years ended December 31, 2010, 2009 and
2008 (amounts in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Income and other tax expense (benefit) (1)
|
|
$
|
334
|
|
|
$
|
2,804
|
|
|
$
|
5,279
|
|
Discontinued operations, net (2)
|
|
|
44
|
|
|
|
(1,161
|
)
|
|
|
(1,841
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income, franchise and excise taxes (3)
|
|
$
|
378
|
|
|
$
|
1,643
|
|
|
$
|
3,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Primarily includes state and local
income, excise and franchise taxes.
|
(2)
|
|
Primarily represents federal income
taxes (recovered) on the gains on sales of condominium units
owned by a TRS and included in discontinued operations. Also
represents state and local income, excise and franchise taxes on
operating properties sold and included in discontinued
operations.
|
(3)
|
|
All provisions for income tax
amounts are current and none are deferred.
|
The Companys TRSs carried back approximately
$7.3 million of 2008 net operating losses
(NOL) to 2006. The remaining NOL from the 2008 tax
year, as well as the NOLs generated in 2009 and 2010, are
available for carryforward to future tax years. The
Companys TRSs have approximately $59.3 million of NOL
carryforwards available as of January 1, 2011 that will
expire in 2028, 2029 and 2030.
During the years ended December 31, 2010, 2009 and 2008,
the Companys tax treatment of dividends and distributions
were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Tax treatment of dividends and distributions:
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary dividends
|
|
$
|
0.607
|
|
|
$
|
0.807
|
|
|
$
|
0.699
|
|
Long-term capital gain
|
|
|
0.622
|
|
|
|
0.558
|
|
|
|
0.755
|
|
Unrecaptured section 1250 gain
|
|
|
0.241
|
|
|
|
0.275
|
|
|
|
0.476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends and distributions declared per
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share outstanding
|
|
$
|
1.470
|
|
|
$
|
1.640
|
|
|
$
|
1.930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The cost of land and depreciable property, net of accumulated
depreciation, for federal income tax purposes as of
December 31, 2010 and 2009 was approximately
$11.1 billion and $10.4 billion, respectively.
Noncontrolling
Interests
A noncontrolling interest in a subsidiary (minority interest) is
in most cases an ownership interest in the consolidated entity
that should be reported as equity in the consolidated financial
statements and separate from the parent companys equity.
In addition, consolidated net income is required to be reported
at amounts that include the amounts attributable to both the
parent and the noncontrolling interest and the amount of
consolidated net income attributable to the parent and the
noncontrolling interest are required to be disclosed on the face
of the Consolidated Statements of Operations. See Note 3
for further discussion.
Operating Partnership: Net income is allocated to noncontrolling
interests based on their respective ownership percentage of the
Operating Partnership. The ownership percentage is calculated by
dividing the number of units of limited partnership interest
(OP Units) held by the noncontrolling interests
by the total OP Units held by the noncontrolling interests
and EQR. Issuance of additional common shares of beneficial
interest, $0.01 par value per share (the Common
Shares), and OP Units changes the ownership interests
of both the noncontrolling interests and EQR. Such transactions
and the related proceeds are treated as capital transactions.
Partially Owned Properties: The Company reflects noncontrolling
interests in partially owned properties on the balance sheet for
the portion of properties consolidated by the Company that are
not wholly owned by the Company. The earnings or losses from
those properties attributable to the noncontrolling interests
are reflected as noncontrolling interests in partially owned
properties in the consolidated statements of operations.
Redeemable Noncontrolling Interests Operating
Partnership: The Company classifies Redeemable Noncontrolling
Interests Operating Partnership in the mezzanine
section of the consolidated balance sheets for the portion of
OP Units that the Company is required, either by contract
or securities law, to deliver registered EQR Common Shares to
the exchanging OP Unit
F-16
holder. The redeemable noncontrolling interest 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.
Use of
Estimates
In preparation of the Companys 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.
Reclassifications
Certain reclassifications considered necessary for a fair
presentation have been made to the prior period financial
statements in order to conform to the current year presentation.
These reclassifications have not changed the results of
operations or equity.
Other
In June 2009, the Financial Accounting Standards Board
(FASB) issued The FASB Accounting Standards
Codification and the Hierarchy of Generally Accepted Accounting
Principles, which superseded all then-existing non-SEC
accounting and reporting standards and became the source of
authoritative U.S. generally accepted accounting principles
recognized by the FASB to be applied by non-governmental
entities. The Company adopted the codification as required,
effective for the quarter ended September 30, 2009. The
adoption of the codification has no impact on the Companys
consolidated results of operations or financial position but
changed the way we refer to accounting literature in our reports.
Effective January 1, 2010, in an effort to improve
financial standards for transfers of financial assets, more
stringent conditions for reporting a transfer of a portion of a
financial asset as a sale (e.g. loan participations) are
required, the concept of a qualifying special-purpose
entity and special guidance for guaranteed mortgage
securitizations are eliminated, other sale-accounting criteria
is clarified and the initial measurement of a transferors
interest in transferred financial assets is changed. This does
not have a material effect on the Companys consolidated
results of operations or financial position.
Effective January 1, 2010, the analysis for identifying the
primary beneficiary of a Variable Interest Entity
(VIE) has been simplified by replacing the previous
quantitative-based analysis with a framework that is based more
on qualitative judgments. The analysis requires the primary
beneficiary of a VIE to be identified as the party that both
(a) has the power to direct the activities of a VIE that
most significantly impact its economic performance and
(b) has an obligation to absorb losses or a right to
receive benefits that could potentially be significant to the
VIE. For the Company, this includes its consolidated development
partnerships as the Company provides substantially all of the
capital for these ventures (other than third party mortgage
debt, if any). For the Company, these requirements affected only
disclosures and had no impact on the Companys consolidated
results of operations or financial position. See Note 6 for
further discussion.
The Company is required to make certain disclosures regarding
noncontrolling interests in consolidated limited-life
subsidiaries. The Company is the controlling partner in various
consolidated partnerships owning 24 properties and 5,232
apartment units and various completed and uncompleted
development properties having a noncontrolling interest book
value of $8.0 million at December 31, 2010. Some of
these partnership agreements contain provisions that require the
partnerships to be liquidated through the sale of their assets
upon reaching a date specified in each respective partnership
agreement. The Company, as controlling partner, has an
obligation to cause the property owning partnerships to
distribute the proceeds of liquidation to the Noncontrolling
Interests in these Partially Owned Properties only to the extent
that the net proceeds received by the partnerships from the sale
of their assets warrant a distribution based on the partnership
agreements. As of December 31, 2010, the Company estimates
the value of Noncontrolling Interest distributions would have
been approximately $53.0 million (Settlement
Value) had the partnerships been liquidated. This
Settlement Value is based on estimated third party consideration
realized by the partnerships upon disposition of the Partially
Owned Properties and is net of all other assets and liabilities,
including yield maintenance on the mortgages encumbering the
properties, that would have been due on December 31, 2010
had those mortgages been prepaid. Due to, among other things,
the inherent uncertainty in the sale of real estate assets, the
amount of any potential distribution to the Noncontrolling
Interests in the Companys Partially Owned Properties is
subject to change. To the extent that the partnerships
underlying assets are worth less than the underlying
liabilities, the Company has no obligation to remit any
consideration to the Noncontrolling Interests in these Partially
Owned Properties.
Effective beginning the quarter ended June 30, 2009,
disclosures about fair value of financial instruments are
required for interim reporting periods in summarized financial
information for publicly traded companies as well as in annual
financial
F-17
statements. This does not have a material effect on the
Companys consolidated results of operations or financial
position. See Note 11 for further discussion.
Effective January 1, 2010, companies are required to
separately disclose the amounts of significant transfers of
assets and liabilities into and out of Level 1,
Level 2 and Level 3 of the fair value hierarchy and
the reasons for those transfers. Companies must also develop and
disclose their policy for determining when transfers between
levels are recognized. In addition, companies are required to
provide fair value disclosures for each class rather than each
major category of assets and liabilities. For fair value
measurements using significant other observable inputs
(Level 2) or significant unobservable inputs
(Level 3), companies are required to disclose the valuation
technique and the inputs used in determining fair value for each
class of assets and liabilities. This does not have a material
effect on the Companys consolidated results of operations
or financial position. See Note 11 for further discussion.
Effective January 1, 2011, companies will be required to
separately disclose purchases, sales, issuances and settlements
on a gross basis in the reconciliation of recurring Level 3
fair value measurements. The Company does not expect this will
have a material effect on its consolidated results of operations
or financial position.
Effective January 1, 2009, in an effort to improve
financial standards for derivative instruments and hedging
activities, companies are required to enhance disclosures to
enable investors to better understand their effects on an
entitys financial position, financial performance and cash
flows. Among other requirements, entities are required to
provide enhanced disclosures about: (1) how and why an
entity uses derivative instruments; (2) how derivative
instruments and related hedged items are accounted for; and
(3) how derivative instruments and related hedged items
affect an entitys financial position, financial
performance and cash flows. Other than the enhanced disclosure
requirements, this does not have a material effect on the
Companys consolidated financial statements. See
Note 11 for further discussion.
Effective January 1, 2009, issuers of certain convertible
debt instruments that may be settled in cash on conversion were
required to separately account for the liability and equity
components of the instrument in a manner that reflects each
issuers nonconvertible debt borrowing rate. As the Company
is required to apply this retrospectively, the accounting for
the Operating Partnerships $650.0 million
($482.5 million outstanding at December 31,
2010) 3.85% convertible unsecured notes that were issued in
August 2006 and mature in August 2026 was affected. The Company
recognized $18.6 million, $20.6 million and
$24.4 million in interest expense related to the stated
coupon rate of 3.85% for the years ended December 31, 2010,
2009 and 2008, respectively. The amount of the conversion option
as of the date of issuance calculated by the Company using a
5.80% effective interest rate was $44.3 million and is
being amortized to interest expense over the expected life of
the convertible notes (through the first put date on
August 18, 2011). Total amortization of the cash discount
and conversion option discount on the unsecured notes resulted
in a reduction to earnings of approximately $7.8 million
and $10.6 million, respectively, or $0.03 per share and
$0.04 per share, respectively, for the years ended
December 31, 2010 and 2009, and is anticipated to result in
a reduction to earnings of approximately $5.0 million or
$0.02 per share for the year ended December 31, 2011. In
addition, the Company decreased the January 1, 2009 balance
of retained earnings by $27.0 million, decreased the
January 1, 2009 balance of notes by $17.3 million and
increased the January 1, 2009 balance of paid in capital by
$44.3 million. Due to the required retrospective
application, it resulted in a reduction to earnings of
approximately $13.3 million or $0.05 per share for the year
ended December 31, 2008. The carrying amount of the
conversion option remaining in paid in capital was
$44.3 million at both December 31, 2010 and 2009. The
unamortized cash and conversion option discounts totaled
$5.0 million and $12.8 million at December 31,
2010 and 2009, respectively.
F-18
|
|
3.
|
Equity
and Redeemable Noncontrolling Interests
|
The following tables present the changes in the Companys
issued and outstanding Common Shares and Units
(which includes OP Units and Long-Term Incentive Plan
(LTIP) Units) for the years ended December 31,
2010, 2009 and 2008:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Common Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares outstanding at January 1,
|
|
|
279,959,048
|
|
|
|
272,786,760
|
|
|
|
269,554,661
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares Issued:
|
|
|
|
|
|
|
|
|
|
|
|
|
Conversion of Series E Preferred Shares
|
|
|
328,363
|
|
|
|
612
|
|
|
|
36,830
|
|
Conversion of Series H Preferred Shares
|
|
|
32,516
|
|
|
|
-
|
|
|
|
2,750
|
|
Conversion of OP Units
|
|
|
884,472
|
|
|
|
2,676,002
|
|
|
|
1,759,560
|
|
Issuance of Common Shares
|
|
|
6,151,198
|
|
|
|
3,497,300
|
|
|
|
-
|
|
Exercise of share options
|
|
|
2,506,645
|
|
|
|
422,713
|
|
|
|
995,129
|
|
Employee Share Purchase Plan (ESPP)
|
|
|
157,363
|
|
|
|
324,394
|
|
|
|
195,961
|
|
Restricted share grants, net
|
|
|
235,767
|
|
|
|
298,717
|
|
|
|
461,954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchased and retired
|
|
|
(58,130
|
)
|
|
|
(47,450
|
)
|
|
|
(220,085
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares outstanding at December 31,
|
|
|
290,197,242
|
|
|
|
279,959,048
|
|
|
|
272,786,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units
|
|
|
|
|
|
|
|
|
|
|
|
|
Units outstanding at January 1,
|
|
|
14,197,969
|
|
|
|
16,679,777
|
|
|
|
18,420,320
|
|
LTIP Units, net
|
|
|
92,892
|
|
|
|
154,616
|
|
|
|
-
|
|
OP Units issued through acquisitions/consolidations
|
|
|
205,648
|
|
|
|
32,061
|
|
|
|
19,017
|
|
Conversion of Series B Junior Preference Units
|
|
|
-
|
|
|
|
7,517
|
|
|
|
-
|
|
Conversion of OP Units to Common Shares
|
|
|
(884,472
|
)
|
|
|
(2,676,002
|
)
|
|
|
(1,759,560
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units outstanding at December 31,
|
|
|
13,612,037
|
|
|
|
14,197,969
|
|
|
|
16,679,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Common Shares and Units outstanding at
December 31,
|
|
|
303,809,279
|
|
|
|
294,157,017
|
|
|
|
289,466,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units Ownership Interest in Operating Partnership
|
|
|
4.5%
|
|
|
|
4.8%
|
|
|
|
5.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTIP Units Issued:
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance per unit
|
|
|
-
|
|
|
|
$0.50
|
|
|
|
-
|
|
Issuance contribution valuation
|
|
|
-
|
|
|
|
$0.1 million
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OP Units Issued:
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions/consolidations per unit
|
|
|
$40.09
|
|
|
|
$26.50
|
|
|
|
$44.64
|
|
Acquisitions/consolidations valuation
|
|
|
$8.2 million
|
|
|
|
$0.8 million
|
|
|
|
$0.8 million
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conversion of Series B Junior Preference Units
per unit
|
|
|
-
|
|
|
|
$24.50
|
|
|
|
-
|
|
Conversion of Series B Junior Preference Units
valuation
|
|
|
-
|
|
|
|
$0.2 million
|
|
|
|
-
|
|
An unlimited amount of equity and debt securities remains
available for issuance by the Company and the Operating
Partnership under effective shelf registration statements filed
with the SEC. Most recently, the Company and the Operating
Partnership filed a universal shelf registration statement for
an unlimited amount of equity and debt securities that became
automatically effective upon filing with the SEC in October 2010
(under SEC regulations enacted in 2005, the registration
statement automatically expires on October 14, 2013 and
does not contain a maximum issuance amount).
In September 2009, the Company announced the establishment of an
At-The-Market
(ATM) share offering program which would allow the
Company to sell up to 17.0 million Common Shares from time
to time over the next three years into the existing trading
market at current market prices as well as through negotiated
transactions. During the year ended December 31, 2010, the
Company issued approximately 6.2 million Common Shares at
an average price of $47.45 per share for total consideration of
approximately $291.9 million through the ATM program.
During the year ended December 31, 2009, the Company issued
approximately 3.5 million Common Shares at an average price
of $35.38 per share for total consideration of approximately
$123.7 million through the ATM program. As of
December 31, 2009, transactions to issue approximately
1.1 million of the 3.5 million Common Shares had not
yet settled. As of December 31, 2009, the Company increased
the number of Common Shares issued and outstanding by this
amount and recorded a receivable of approximately
$37.6 million included in other assets on the consolidated
balance sheets. See Note 20 for further discussion on
shares available under this program.
F-19
EQR has a share repurchase program authorized by the Board of
Trustees. Considering the repurchase activity for the year ended
December 31, 2010, EQR has remaining authorization to
repurchase an additional $464.6 million of its shares as of
December 31, 2010.
During the year ended December 31, 2010, the Company
repurchased 58,130 of its Common Shares at an average price of
$32.46 per share for total consideration of $1.9 million.
These shares were retired subsequent to the repurchases. All of
the shares repurchased during the year ended December 31,
2010 were repurchased from employees at the then current market
prices to cover the minimum statutory tax withholding
obligations related to the vesting of employees restricted
shares.
During the year ended December 31, 2009, the Company
repurchased 47,450 of its Common Shares at an average price of
$23.69 per share for total consideration of $1.1 million.
These shares were retired subsequent to the repurchases. All of
the shares repurchased during the year ended December 31,
2009 were repurchased from employees at the then current market
prices to cover the minimum statutory tax withholding
obligations related to the vesting of employees restricted
shares.
During the year ended December 31, 2008, the Company
repurchased 220,085 of its Common Shares at an average price of
$35.93 per share for total consideration of $7.9 million.
These shares were retired subsequent to the repurchases. Of the
total shares repurchased, 120,085 shares were repurchased
from employees at an average price of $36.10 per share (the
average of the then current market prices) to cover the minimum
statutory tax withholding obligations related to the vesting of
employees restricted shares. The remaining
100,000 shares were repurchased in the open market at an
average price of $35.74 per share.
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 LTIP Units, are collectively referred to as the
Noncontrolling Interests Operating
Partnership. Subject to certain exceptions (including the
book-up
requirements of LTIP 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 EQR 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 Noncontrolling Interests Operating Partnership
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 Noncontrolling
Interests Operating Partnership are differentiated
and referred to as Redeemable Noncontrolling
Interests Operating Partnership. Instruments
that require settlement in registered shares can not be
classified in permanent equity as it is not always completely
within an issuers 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
December 31, 2010 and 2009.
The carrying value of the Redeemable Noncontrolling
Interests Operating Partnership is allocated based
on the number of Redeemable Noncontrolling Interests
Operating Partnership Units in proportion to the number of
Noncontrolling Interests Operating Partnership Units
in total. Such percentage of the total carrying value of Units
which is ascribed to the Redeemable Noncontrolling
Interests Operating Partnership is then adjusted to
the greater of carrying value or fair market value as described
above. As of December 31, 2010, the Redeemable
Noncontrolling Interests Operating Partnership have
a redemption value of approximately $383.5 million, which
represents the value of Common Shares that would be issued in
exchange with the Redeemable Noncontrolling
Interests Operating Partnership Units.
F-20
The following table presents the changes in the redemption value
of the Redeemable Noncontrolling Interests Operating
Partnership for the years ended December 31, 2010, 2009 and
2008, respectively (amounts in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Balance at January 1,
|
|
$
|
258,280
|
|
|
$
|
264,394
|
|
|
$
|
345,165
|
|
Change in market value
|
|
|
129,918
|
|
|
|
14,544
|
|
|
|
(65,524
|
)
|
Change in carrying value
|
|
|
(4,658
|
)
|
|
|
(20,658
|
)
|
|
|
(15,247
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31,
|
|
$
|
383,540
|
|
|
$
|
258,280
|
|
|
$
|
264,394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net proceeds from the Companys Common Share and Preferred
Share (see definition below) offerings are contributed by the
Company to the Operating Partnership. In return for those
contributions, EQR receives a number of OP Units in the
Operating Partnership 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 the Operating
Partnership 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 the Operating Partnership.
The Companys declaration of trust authorizes the Company
to issue up to 100,000,000 preferred shares of beneficial
interest, $0.01 par value per share (the Preferred
Shares), with specific rights, preferences and other
attributes as the Board of Trustees may determine, which may
include preferences, powers and rights that are senior to the
rights of holders of the Companys Common Shares.
The following table presents the Companys issued and
outstanding Preferred Shares as of December 31, 2010 and
2009:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual
|
|
|
Amounts in thousands
|
|
|
|
Redemption
|
|
|
Conversion
|
|
|
Dividend per
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
Date (1)(2)
|
|
|
Rate (2)
|
|
|
Share (3)
|
|
|
2010
|
|
|
2009
|
|
|
Preferred Shares of beneficial interest, $0.01 par value;
100,000,000 shares authorized:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.00% Series E Cumulative Convertible Preferred;
liquidation value $25 per share; 0 and 328,466 shares
issued and outstanding at December 31, 2010 and
December 31, 2009, respectively
|
|
|
11/1/98
|
|
|
|
1.1128
|
|
|
$
|
1.75
|
|
|
$
|
-
|
|
|
$
|
8,212
|
|
7.00% Series H Cumulative Convertible Preferred;
liquidation value $25 per share; 0 and 22,459 shares issued
and outstanding at December 31, 2010 and December 31,
2009, respectively
|
|
|
6/30/98
|
|
|
|
1.4480
|
|
|
$
|
1.75
|
|
|
|
-
|
|
|
|
561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8.29% Series K Cumulative Redeemable Preferred; liquidation
value $50 per share; 1,000,000 shares issued and
outstanding at December 31, 2010 and December 31, 2009
|
|
|
12/10/26
|
|
|
|
N/A
|
|
|
$
|
4.145
|
|
|
|
50,000
|
|
|
|
50,000
|
|
6.48% Series N Cumulative Redeemable Preferred; liquidation
value $250 per share; 600,000 shares issued and outstanding
at December 31, 2010 and December 31, 2009 (4)
|
|
|
6/19/08
|
|
|
|
N/A
|
|
|
$
|
16.20
|
|
|
|
150,000
|
|
|
|
150,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
200,000
|
|
|
$
|
208,773
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
On or after the redemption date,
redeemable preferred shares (Series K and N) 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)
|
|
On or after the redemption date,
convertible preferred shares (Series E and H) may be
redeemed under certain circumstances at the option of the
Company for cash (in the case of Series E) or Common
Shares (in the case of Series H), in whole or in part, at
various redemption prices per share based upon the contractual
conversion rate, plus accrued and unpaid distributions, if any.
On November 1, 2010, the Company redeemed its Series E
and Series H Cumulative Convertible Preferred Shares for
cash consideration of $0.8 million and 355,539 Common
Shares.
|
|
(3)
|
|
Dividends on all series of
Preferred Shares are payable quarterly at various pay dates. The
dividend listed for Series N is a Preferred Share rate and
the equivalent Depositary Share annual dividend is $1.62 per
share.
|
(4)
|
|
The Series N Preferred Shares
have a corresponding depositary share that consists of ten times
the number of shares and one-tenth the liquidation value and
dividend per share.
|
On July 30, 2009, the Operating Partnership elected to
convert all 7,367 Series B Junior Convertible Preference
Units into 7,517 OP Units. The actual preference unit
dividends declared for the period outstanding in 2009 was $1.17
per unit.
F-21
On March 31, 2010, the Operating Partnership issued 188,571
OP Units at a price of $39.15 per OP Unit for total
valuation of $7.4 million as partial consideration for the
acquisition of one rental property. As the value of the
OP Units issued was agreed by contract to be $35.00 per
OP Unit, the difference between the contracted value and
fair value (the closing price of Common Shares on the closing
date) was recorded as an increase to the purchase price.
During the year ended December 31, 2010, the Company
acquired all of its partners interest in two consolidated
partially owned properties consisting of 432 apartment units,
one consolidated partially owned development project and one
consolidated partially owned land parcel for $0.7 million.
One of these partially owned property buyouts was funded through
the issuance of 1,129 OP Units valued at $50,000. The
Company also increased its ownership in three consolidated
partially owned properties through the buyout of certain equity
interests which were funded through the issuance of 15,948
OP Units valued at $0.8 million and cash payments of
$15.3 million. In conjunction with these transactions, the
Company reduced paid in capital by $16.9 million and other
liabilities by $0.2 million and increased Noncontrolling
Interests Partially Owned Properties by
$0.2 million.
During the year ended December 31, 2009, the Company
acquired all of its partners interests in five
consolidated partially owned properties consisting of 1,587
apartment units for $9.2 million. In addition, the Company
also acquired a portion of the outside partner interests in two
consolidated partially owned properties, one funded using cash
of $2.1 million and the other funded through the issuance
of 32,061 OP Units valued at $0.8 million. In
conjunction with these transactions, the Company reduced paid in
capital by $1.5 million and Noncontrolling
Interests Partially Owned Properties by
$11.7 million.
During the year ended December 31, 2008, the Company
acquired all of its partners interests in one consolidated
partially owned property consisting of 144 apartment units for
$5.9 million and three consolidated partially owned land
parcels for $1.6 million. In addition, the Company made an
additional payment of $1.3 million related to an April 2006
acquisition of a partners interest in a now wholly owned
property, partially funded through the issuance of 19,017
OP Units valued at $0.8 million.
The following table summarizes the carrying amounts for the
Companys investment in real estate (at cost) as of
December 31, 2010 and 2009 (amounts in thousands):
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
Land
|
|
$
|
4,110,275
|
|
|
$
|
3,650,324
|
|
Depreciable property:
|
|
|
|
|
|
|
|
|
Buildings and improvements
|
|
|
13,995,121
|
|
|
|
12,781,543
|
|
Furniture, fixtures and equipment
|
|
|
1,231,391
|
|
|
|
1,111,978
|
|
Projects under development:
|
|
|
|
|
|
|
|
|
Land
|
|
|
28,260
|
|
|
|
106,716
|
|
Construction-in-progress
|
|
|
102,077
|
|
|
|
562,263
|
|
Land held for development:
|
|
|
|
|
|
|
|
|
Land
|
|
|
198,465
|
|
|
|
181,430
|
|
Construction-in-progress
|
|
|
36,782
|
|
|
|
70,890
|
|
|
|
|
|
|
|
|
|
|
Investment in real estate
|
|
|
19,702,371
|
|
|
|
18,465,144
|
|
Accumulated depreciation
|
|
|
(4,337,357
|
)
|
|
|
(3,877,564
|
)
|
|
|
|
|
|
|
|
|
|
Investment in real estate, net
|
|
$
|
15,365,014
|
|
|
$
|
14,587,580
|
|
|
|
|
|
|
|
|
|
|
During the year ended December 31, 2010, the Company
acquired the entire equity interest in the following from
unaffiliated parties (purchase price in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
|
|
|
|
Properties
|
|
|
Apartment Units
|
|
|
Price
|
|
|
Rental Properties
|
|
|
16
|
|
|
|
4,445
|
|
|
$
|
1,485,701
|
|
Land Parcels (six)
|
|
|
-
|
|
|
|
-
|
|
|
|
68,869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
16
|
|
|
|
4,445
|
|
|
$
|
1,554,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In addition to the properties discussed above, the Company
acquired the 75% equity interest it did not own in seven
previously unconsolidated properties containing 1,811 apartment
units with a real estate value of $105.1 million.
F-22
During the year ended December 31, 2009, the Company
acquired the entire equity interest in the following from
unaffiliated parties (purchase price in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Properties
|
|
|
Apartment Units
|
|
|
Purchase Price
|
|
|
Rental Properties
|
|
|
2
|
|
|
|
566
|
|
|
$
|
145,036
|
|
Land Parcel (one)
|
|
|
-
|
|
|
|
-
|
|
|
|
11,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
2
|
|
|
|
566
|
|
|
$
|
156,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company also acquired the 75% equity interest in one
previously unconsolidated property it did not already own
consisting of 250 apartment units for a gross sales price of
$18.5 million from its institutional joint venture partner.
During the year ended December 31, 2010, the Company
disposed of the following to unaffiliated parties (sales price
in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Properties
|
|
|
Apartment Units
|
|
|
Sales Price
|
|
|
Rental Properties:
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
35
|
|
|
|
7,171
|
|
|
$
|
718,352
|
|
Unconsolidated (1)
|
|
|
27
|
|
|
|
6,275
|
|
|
|
417,779
|
|
Land Parcel (one)
|
|
|
-
|
|
|
|
-
|
|
|
|
4,000
|
|
Condominium Conversion Properties
|
|
|
1
|
|
|
|
2
|
|
|
|
360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
63
|
|
|
|
13,448
|
|
|
$
|
1,140,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The Company owned a 25% interest in
these unconsolidated rental properties. Sales price listed is
the gross sales price.
|
The Company recognized a net gain on sales of discontinued
operations of approximately $298.0 million, a net gain on
sales of unconsolidated entities of approximately
$28.1 million and a net loss on sales of land parcels of
approximately $1.4 million on the above sales.
During the year ended December 31, 2009, the Company
disposed of the following to unaffiliated parties (sales price
in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Properties
|
|
|
Apartment Units
|
|
|
Sales Price
|
|
|
Rental Properties:
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
54
|
|
|
|
11,055
|
|
|
$
|
905,219
|
|
Unconsolidated (1)
|
|
|
6
|
|
|
|
1,434
|
|
|
|
96,018
|
|
Condominium Conversion Properties
|
|
|
1
|
|
|
|
62
|
|
|
|
12,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
61
|
|
|
|
12,551
|
|
|
$
|
1,013,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The Company owned a 25% interest in
these unconsolidated rental properties. Sales price listed is
the gross sales price. The Companys buyout of its
partners interest in one previously unconsolidated
property is not included in the above totals.
|
The Company recognized a net gain on sales of discontinued
operations of approximately $335.3 million and a net gain
on sales of unconsolidated entities of approximately
$10.7 million on the above sales.
|
|
5.
|
Commitments
to Acquire/Dispose of Real Estate
|
In addition to the properties that were subsequently acquired as
discussed in Note 20, the Company had entered into separate
agreements to acquire the following (purchase price in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Properties
|
|
|
Apartment Units
|
|
|
Purchase Price
|
|
|
Rental Properties
|
|
|
2
|
|
|
|
683
|
|
|
$
|
125,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
2
|
|
|
|
683
|
|
|
$
|
125,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-23
In addition to the properties that were subsequently disposed of
as discussed in Note 20, the Company had entered into
separate agreements to dispose of the following (sales price in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Properties
|
|
|
Apartment Units
|
|
|
Sales Price
|
|
|
Rental Properties
|
|
|
15
|
|
|
|
4,152
|
|
|
$
|
378,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
15
|
|
|
|
4,152
|
|
|
$
|
378,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The closings of these pending transactions are subject to
certain conditions and restrictions, therefore, there can be no
assurance that these transactions will be consummated or that
the final terms will not differ in material respects from those
summarized in the preceding paragraphs.
|
|
6.
|
Investments
in Partially Owned Entities
|
The Company has co-invested in various properties with unrelated
third parties which are either consolidated or accounted for
under the equity method of accounting (unconsolidated). The
following tables and information summarize the Companys
investments in partially owned entities as of December 31,
2010 (amounts in thousands except for project and apartment unit
amounts):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
Development Projects (VIEs)
|
|
|
|
|
|
|
|
|
|
Held for
|
|
|
Completed,
|
|
|
Completed
|
|
|
|
|
|
|
|
|
|
and/or Under
|
|
|
Not
|
|
|
and
|
|
|
|
|
|
|
|
|
|
Development
|
|
|
Stabilized(4)
|
|
|
Stabilized
|
|
|
Other
|
|
|
Total
|
|
|
Total projects (1)
|
|
|
-
|
|
|
|
1
|
|
|
|
4
|
|
|
|
19
|
|
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total apartment units (1)
|
|
|
-
|
|
|
|
490
|
|
|
|
1,302
|
|
|
|
3,440
|
|
|
|
5,232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
at 12/31/10 (at 100%):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
Investment in real estate
|
|
$
|
44,006
|
|
|
$
|
257,747
|
|
|
$
|
390,465
|
|
|
$
|
438,329
|
|
|
$
|
1,130,547
|
|
Accumulated depreciation
|
|
|
-
|
|
|
|
-
|
|
|
|
(18,471
|
)
|
|
|
(124,347
|
)
|
|
|
(142,818
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in real estate, net
|
|
|
44,006
|
|
|
|
257,747
|
|
|
|
371,994
|
|
|
|
313,982
|
|
|
|
987,729
|
|
Cash and cash equivalents
|
|
|
877
|
|
|
|
1,288
|
|
|
|
7,384
|
|
|
|
11,581
|
|
|
|
21,130
|
|
Deposits restricted
|
|
|
1,115
|
|
|
|
922
|
|
|
|
3,205
|
|
|
|
8
|
|
|
|
5,250
|
|
Escrow deposits mortgage
|
|
|
-
|
|
|
|
-
|
|
|
|
222
|
|
|
|
2,321
|
|
|
|
2,543
|
|
Deferred financing costs, net
|
|
|
-
|
|
|
|
2,800
|
|
|
|
412
|
|
|
|
505
|
|
|
|
3,717
|
|
Other assets
|
|
|
339
|
|
|
|
268
|
|
|
|
308
|
|
|
|
143
|
|
|
|
1,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
46,337
|
|
|
$
|
263,025
|
|
|
$
|
383,525
|
|
|
$
|
328,540
|
|
|
$
|
1,021,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
Mortgage notes payable
|
|
$
|
18,342
|
|
|
$
|
141,741
|
|
|
$
|
275,348
|
|
|
$
|
314,535
|
|
|
$
|
749,966
|
|
Accounts payable & accrued expenses
|
|
|
346
|
|
|
|
2,215
|
|
|
|
1,070
|
|
|
|
1,259
|
|
|
|
4,890
|
|
Accrued interest payable
|
|
|
1,294
|
|
|
|
521
|
|
|
|
605
|
|
|
|
1,531
|
|
|
|
3,951
|
|
Other liabilities
|
|
|
1,617
|
|
|
|
1,568
|
|
|
|
910
|
|
|
|
1,001
|
|
|
|
5,096
|
|
Security deposits
|
|
|
-
|
|
|
|
1,021
|
|
|
|
955
|
|
|
|
1,392
|
|
|
|
3,368
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
21,599
|
|
|
|
147,066
|
|
|
|
278,888
|
|
|
|
319,718
|
|
|
|
767,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling Interests Partially Owned Properties
|
|
|
3,418
|
|
|
|
5,025
|
|
|
|
4,278
|
|
|
|
(4,730
|
)
|
|
|
7,991
|
|
Accumulated other comprehensive (loss)
|
|
|
-
|
|
|
|
(1,322
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,322
|
)
|
EQR equity
|
|
|
21,320
|
|
|
|
112,256
|
|
|
|
100,359
|
|
|
|
13,552
|
|
|
|
247,487
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
24,738
|
|
|
|
115,959
|
|
|
|
104,637
|
|
|
|
8,822
|
|
|
|
254,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$
|
46,337
|
|
|
$
|
263,025
|
|
|
$
|
383,525
|
|
|
$
|
328,540
|
|
|
$
|
1,021,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
Development Projects (VIEs)
|
|
|
|
|
|
|
|
|
|
Held for
|
|
|
Completed,
|
|
|
Completed
|
|
|
|
|
|
|
|
|
|
and/or Under
|
|
|
Not
|
|
|
and
|
|
|
|
|
|
|
|
|
|
Development
|
|
|
Stabilized(4)
|
|
|
Stabilized
|
|
|
Other
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt Secured (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQR Ownership (3)
|
|
$
|
18,342
|
|
|
$
|
141,741
|
|
|
$
|
275,348
|
|
|
$
|
252,857
|
|
|
$
|
688,288
|
|
Noncontrolling Ownership
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
61,678
|
|
|
|
61,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total (at 100%)
|
|
$
|
18,342
|
|
|
$
|
141,741
|
|
|
$
|
275,348
|
|
|
$
|
314,535
|
|
|
$
|
749,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating information for the year
ended 12/31/10 (at 100%):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenue
|
|
$
|
4
|
|
|
$
|
6,344
|
|
|
$
|
25,607
|
|
|
$
|
55,928
|
|
|
$
|
87,883
|
|
Operating expenses
|
|
|
758
|
|
|
|
3,458
|
|
|
|
9,370
|
|
|
|
19,906
|
|
|
|
33,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating (loss) income
|
|
|
(754
|
)
|
|
|
2,886
|
|
|
|
16,237
|
|
|
|
36,022
|
|
|
|
54,391
|
|
Depreciation
|
|
|
-
|
|
|
|
-
|
|
|
|
12,239
|
|
|
|
14,882
|
|
|
|
27,121
|
|
General and administrative/other
|
|
|
51
|
|
|
|
-
|
|
|
|
127
|
|
|
|
92
|
|
|
|
270
|
|
Impairment
|
|
|
8,959
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income
|
|
|
(9,764
|
)
|
|
|
2,886
|
|
|
|
3,871
|
|
|
|
21,048
|
|
|
|
18,041
|
|
Interest and other income
|
|
|
23
|
|
|
|
-
|
|
|
|
10
|
|
|
|
30
|
|
|
|
63
|
|
Other expenses
|
|
|
(493
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(548
|
)
|
|
|
(1,041
|
)
|
Interest:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense incurred, net
|
|
|
(925
|
)
|
|
|
(2,872
|
)
|
|
|
(6,596
|
)
|
|
|
(20,576
|
)
|
|
|
(30,969
|
)
|
Amortization of deferred financing costs
|
|
|
-
|
|
|
|
-
|
|
|
|
(753
|
)
|
|
|
(238
|
)
|
|
|
(991
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income and other taxes
and discontinued operations
|
|
|
(11,159
|
)
|
|
|
14
|
|
|
|
(3,468
|
)
|
|
|
(284
|
)
|
|
|
(14,897
|
)
|
Income and other tax (expense) benefit
|
|
|
(31
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(5
|
)
|
|
|
(36
|
)
|
Net loss on sales of land parcels
|
|
|
(234
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(234
|
)
|
Net gain on sales of discontinued operations
|
|
|
711
|
|
|
|
-
|
|
|
|
-
|
|
|
|
34,842
|
|
|
|
35,553
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
$
|
(10,713
|
)
|
|
$
|
14
|
|
|
$
|
(3,468
|
)
|
|
$
|
34,553
|
|
|
$
|
20,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Project and apartment unit counts
exclude all uncompleted development projects until those
projects are substantially completed.
|
(2)
|
|
All debt is non-recourse to the
Company with the exception of $14.0 million in mortgage
debt on one development project.
|
(3)
|
|
Represents the Companys
current economic ownership interest.
|
(4)
|
|
Projects included here are
substantially complete. However, they may still require
additional exterior and interior work for all apartment units to
be available for leasing.
|
During the year ended December 31, 2010, the Company
acquired the 75% equity interest it did not own in seven
previously unconsolidated properties containing 1,811 apartment
units in exchange for an approximate $30.0 million payment
to its partner. In addition, the Company repaid the net
$70.0 million mortgage loan, which was to mature on
May 1, 2010, concurrent with closing using proceeds drawn
from the Companys line of credit. The Company also sold
its 25% equity interest in the remaining 24 unconsolidated
properties containing 5,635 apartment units in exchange for an
approximate $25.4 million payment from its partner and the
related $264.8 million in non-recourse mortgage debt was
extinguished by the partner at closing.
On December 29, 2010, the Company admitted an 80%
institutional partner to an entity owning a developable land
parcel in Florida in exchange for $11.7 million in cash and
retained a 20% equity interest. This land parcel is now
unconsolidated. Total project cost is approximately
$76.1 million and construction is expected to start in the
first quarter of 2011. The Company is responsible for
constructing the project and has given certain construction cost
overun guarantees.
The Company is the controlling partner in various consolidated
partnership properties and development properties having a
noncontrolling interest book value of $8.0 million at
December 31, 2010. The Company has identified its
development partnerships as VIEs as the Company provides
substantially all of the capital for these ventures (other than
third party mortgage debt, if any) despite the fact that each
partner legally owns 50% of each venture. The Company is the
primary beneficiary as it exerts the most significant power over
the ventures, absorbs the majority of the expected losses and
has the right to receive a majority of the expected residual
returns. The assets net of liabilities of the Companys
VIEs are restricted in their use to the
F-25
specific VIE to which they relate and are not available for
general corporate use. The Company does not have any
unconsolidated VIEs.
The following table presents the Companys restricted
deposits as of December 31, 2010 and 2009 (amounts in
thousands):
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
Tax deferred (1031) exchange proceeds
|
|
$
|
103,887
|
|
|
$
|
244,257
|
|
Earnest money on pending acquisitions
|
|
|
9,264
|
|
|
|
6,000
|
|
Restricted deposits on debt (1)
|
|
|
18,966
|
|
|
|
49,565
|
|
Resident security and utility deposits
|
|
|
40,745
|
|
|
|
39,361
|
|
Other
|
|
|
8,125
|
|
|
|
12,825
|
|
|
|
|
|
|
|
|
|
|
Totals
|
|
$
|
180,987
|
|
|
$
|
352,008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Primarily represents amounts held
in escrow by the lender and released as draw requests are made
on fully funded development mortgage loans.
|
|
|
8.
|
Mortgage
Notes Payable
|
As of December 31, 2010, the Company had outstanding
mortgage debt of approximately $4.8 billion.
During the year ended December 31, 2010, the Company:
|
|
|
|
n
|
Repaid $652.1 million of
mortgage loans;
|
|
|
n
|
Obtained $173.6 million of
new mortgage loan proceeds;
|
|
|
n
|
Assumed $359.1 million of
mortgage debt on seven acquired properties;
|
|
|
n
|
Was released from
$40.0 million of mortgage debt assumed by the purchaser on
two disposed properties; and
|
|
|
n
|
Assumed $112.6 million of
mortgage debt on seven previously unconsolidated properties and
repaid the net $70.0 million mortgage loan (net of
$42.6 million of cash collateral held by the lender)
concurrent with closing using proceeds drawn from the
Companys line of credit.
|
The Company recorded approximately $2.5 million and
$1.0 million of prepayment penalties and write-offs of
unamortized deferred financing costs, respectively, during the
year ended December 31, 2010 as additional interest expense
related to debt extinguishment of mortgages.
As of December 31, 2010, the Company had
$543.4 million of secured debt subject to third party
credit enhancement.
As of December 31, 2010, scheduled maturities for the
Companys outstanding mortgage indebtedness were at various
dates through September 1, 2048. At December 31, 2010,
the interest rate range on the Companys mortgage debt was
0.21% to 11.25%. During the year ended December 31, 2010,
the weighted average interest rate on the Companys
mortgage debt was 4.79%.
The historical cost, net of accumulated depreciation, of
encumbered properties was $5.6 billion and
$5.8 billion at December 31, 2010 and 2009,
respectively.
Aggregate payments of principal on mortgage notes payable for
each of the next five years and thereafter are as follows
(amounts in thousands):
|
|
|
|
|
Year
|
|
Total
|
|
|
2011
|
|
$
|
597,100
|
|
2012
|
|
|
342,088
|
|
2013
|
|
|
171,138
|
|
2014
|
|
|
86,041
|
|
2015
|
|
|
59,013
|
|
Thereafter
|
|
|
3,507,516
|
|
|
|
|
|
|
Total
|
|
$
|
4,762,896
|
|
|
|
|
|
|
As of December 31, 2009, the Company had outstanding
mortgage debt of approximately $4.8 billion.
F-26
During the year ended December 31, 2009, the Company:
|
|
|
|
n
|
Repaid $956.8 million of
mortgage loans;
|
|
|
n
|
Obtained $500.0 million of
mortgage loan proceeds through the issuance of an
11-year
cross-collateralized loan with an all-in fixed interest rate for
10 years at approximately 5.6% secured by 13 properties;
|
|
|
n
|
Obtained $40.0 million of new
mortgage loans to accommodate the delayed sale of two properties
that closed in January 2010;
|
|
|
n
|
Obtained $198.8 million of
new mortgage loans on development properties;
|
|
|
n
|
Recognized a gain on early debt
extinguishment of $2.4 million and wrote-off approximately
$1.1 million of unamortized deferred financing
costs; and
|
|
|
n
|
Was released from
$17.3 million of mortgage debt assumed by the purchaser on
two disposed properties.
|
As of December 31, 2009, scheduled maturities for the
Companys outstanding mortgage indebtedness were at various
dates through September 1, 2048. At December 31, 2009,
the interest rate range on the Companys mortgage debt was
0.20% to 12.465%. During the year ended December 31, 2009,
the weighted average interest rate on the Companys
mortgage debt was 4.89%.
The following tables summarize the Companys unsecured note
balances and certain interest rate and maturity date information
as of and for the years ended December 31, 2010 and 2009,
respectively:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
Interest
|
|
Weighted
|
|
Maturity
|
December 31, 2010
|
|
Principal
|
|
|
Rate
|
|
Average
|
|
Date
|
(Amounts are in thousands)
|
|
Balance
|
|
|
Ranges
|
|
Interest Rate
|
|
Ranges
|
|
Fixed Rate Public/Private Notes (1)
|
|
$
|
4,375,860
|
|
|
3.85% - 7.57%
|
|
5.78%
|
|
2011 - 2026
|
Floating Rate Public/Private Notes (1)
|
|
|
809,320
|
|
|
(1)
|
|
1.72%
|
|
2011 - 2013
|
|
|
|
|
|
|
|
|
|
|
|
Totals
|
|
$
|
5,185,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
Interest
|
|
Weighted
|
|
Maturity
|
December 31, 2009
|
|
Principal
|
|
|
Rate
|
|
Average
|
|
Date
|
(Amounts are in thousands)
|
|
Balance
|
|
|
Ranges
|
|
Interest Rate
|
|
Ranges
|
|
Fixed Rate Public/Private Notes (1)
|
|
$
|
3,771,700
|
|
|
3.85% - 7.57%
|
|
5.93%
|
|
2011 - 2026
|
Floating Rate Public/Private Notes (1)
|
|
|
801,824
|
|
|
(1)
|
|
1.37%
|
|
2010 - 2013
|
Floating Rate Tax-Exempt Bonds
|
|
|
35,600
|
|
|
(2)
|
|
0.37%
|
|
2028
|
|
|
|
|
|
|
|
|
|
|
|
Totals
|
|
$
|
4,609,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
At December 31, 2010 and 2009,
$300.0 million in fair value interest rate swaps converts a
portion of the $400.0 million face value 5.200% notes
due April 1, 2013 to a floating interest rate.
|
(2)
|
|
The floating interest rate is based
on the 7-Day
Securities Industry and Financial Markets Association
(SIFMA) rate, which is the tax-exempt index
equivalent of LIBOR. The interest rate is 0.27% at
December 31, 2009.
|
The Companys 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 both the
years ended December 31, 2010 and 2009.
An unlimited amount of equity and debt securities remains
available for issuance by the Company and the Operating
Partnership under effective shelf registration statements filed
with the SEC. Most recently, the Company and the Operating
Partnership filed a universal shelf registration statement for
an unlimited amount of equity and debt securities that became
automatically effective upon filing with the SEC in October 2010
(under SEC regulations enacted in 2005, the registration
statement automatically expires on October 14, 2013 and
does not contain a maximum issuance amount).
During the year ended December 31, 2010, the Company:
|
|
|
|
n
|
Issued $600.0 million of
ten-year 4.75% fixed rate public notes in a public offering at
an all-in effective interest rate of 5.09%, receiving net
proceeds of $595.4 million before underwriting fees and
other expenses.
|
During the year ended December 31, 2009, the Company:
|
|
|
|
n
|
Repurchased at par
$105.2 million of its 4.75% fixed rate public notes due
June 15, 2009 pursuant to a cash tender offer announced on
January 16, 2009 and wrote-off approximately $79,000 of
unamortized deferred financing costs and approximately $46,000
of unamortized discounts on notes payable;
|
F-27
|
|
|
|
n
|
Repaid the remaining
$122.2 million of its 4.75% fixed rate public notes at
maturity;
|
|
|
n
|
Repurchased at par
$185.2 million of its 6.95% fixed rate public notes due
March 2, 2011 pursuant to a cash tender offer announced on
January 16, 2009 and wrote-off approximately
$0.4 million of unamortized deferred financing costs and
approximately $1.0 million of unamortized discounts on
notes payable;
|
|
|
n
|
Repurchased $21.7 million of
its 6.95% fixed rate public notes due March 2, 2011 at a
price of 106% of par pursuant to a cash tender offer announced
on December 2, 2009, recognized a loss on early debt
extinguishment of $1.3 million and wrote-off approximately
$0.2 million of unamortized net premiums on notes payable;
|
|
|
n
|
Repurchased $146.1 million of
its 6.625% fixed rate public notes due March 15, 2012 at a
price of 108% of par pursuant to a cash tender offer announced
on December 2, 2009, recognized a loss on early debt
extinguishment of $11.7 million and wrote-off approximately
$0.3 million of unamortized deferred financing costs and
approximately $0.2 million of unamortized net discounts on
notes payable;
|
|
|
n
|
Repurchased $127.9 million of
its 5.50% fixed rate public notes due October 1, 2012 at a
price of 107% of par pursuant to a cash tender offer announced
on December 2, 2009, recognized a loss on early debt
extinguishment of $9.0 million and wrote-off approximately
$0.5 million of unamortized deferred financing costs and
approximately $0.4 million of unamortized discounts on
notes payable;
|
|
|
n
|
Repurchased $75.8 million of
its 5.20% fixed rate tax-exempt notes and wrote-off
approximately $0.7 million of unamortized deferred
financing costs;
|
|
|
n
|
Repurchased $17.5 million of
its 3.85% convertible fixed rate public notes due
August 15, 2026 at a price of 88.4% of par and recognized a
gain on early debt extinguishment of $2.0 million and
wrote-off approximately $0.1 million of unamortized
deferred financing costs and approximately $0.8 million of
unamortized discounts on notes payable; and
|
|
|
n
|
Repurchased at par
$48.5 million of its 3.85% convertible fixed rate public
notes due August 15, 2026 pursuant to a cash tender offer
announced on December 2, 2009 and wrote-off approximately
$0.3 million of unamortized deferred financing costs and
approximately $1.5 million of unamortized discounts on
notes payable.
|
On October 11, 2007, the Operating Partnership closed on a
$500.0 million senior unsecured term loan. Effective
April 12, 2010, the Company exercised the first of its two
one-year extension options. As a result, the maturity date is
now October 5, 2011 and there is one remaining one-year
extension option exercisable by the Company. The Operating
Partnership has the ability to increase available borrowings by
an additional $250.0 million under certain circumstances.
The loan bears interest at variable rates based upon LIBOR plus
a spread (currently 0.50%) dependent upon the current credit
rating on the Operating Partnerships long-term senior
unsecured debt. EQR has guaranteed the Operating
Partnerships term loan up to the maximum amount and for
the full term of the loan.
On August 23, 2006, the Operating Partnership issued
$650.0 million of exchangeable senior notes that mature on
August 15, 2026. The notes have a current face value of
$482.5 million at December 31, 2010 and bear interest
at a fixed rate of 3.85%. The notes are exchangeable into EQR
Common Shares, at the option of the holders, under specific
circumstances or on or after August 15, 2025, at an initial
and current exchange rate of 16.3934 shares per $1,000
principal amount of notes (equivalent to an initial and current
exchange price of $61.00 per share). The exchange rate is
subject to adjustment in certain circumstances, including upon
an increase in the Companys dividend rate at the time of
issuance. Upon an exchange of the notes, the Operating
Partnership will settle any amounts up to the principal amount
of the notes in cash and the remaining exchange value, if any,
will be settled, at the Operating Partnerships option, in
cash, EQR Common Shares or a combination of both. See
Note 2 for more information on the change in the
recognition of interest expense for the exchangeable senior
notes.
On or after August 18, 2011, the Operating Partnership may
redeem the notes at a redemption price equal to the principal
amount of the notes plus any accrued and unpaid interest
thereon. Upon notice of redemption by the Operating Partnership,
the holders may elect to exercise their exchange rights. In
addition, on August 18, 2011, August 15, 2016 and
August 15, 2021 or following the occurrence of certain
change in control transactions prior to August 18, 2011,
note holders may require the Operating Partnership to repurchase
the notes for an amount equal to the principal amount of the
notes plus any accrued and unpaid interest thereon.
Note holders may also require an exchange of the notes should
the closing sale price of Common Shares exceed 130% of the
exchange price for a certain period of time or should the
trading price on the notes be less than 98% of the product of
the closing sales price of Common Shares multiplied by the
applicable exchange rate for a certain period of time.
F-28
Aggregate payments of principal on unsecured notes payable for
each of the next five years and thereafter are as follows
(amounts in thousands):
|
|
|
|
|
|
|
|
|
Year
|
|
|
|
|
Total (1)
|
|
|
2011
|
|
|
(2
|
)(3)
|
|
$
|
1,068,891
|
|
2012
|
|
|
|
|
|
|
474,221
|
|
2013
|
|
|
|
|
|
|
407,849
|
|
2014
|
|
|
|
|
|
|
498,576
|
|
2015
|
|
|
|
|
|
|
298,700
|
|
Thereafter
|
|
|
|
|
|
|
2,436,943
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
$
|
5,185,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Principal payments on unsecured
notes include amortization of any discounts or premiums related
to the notes. Premiums and discounts are amortized over the life
of the unsecured notes.
|
|
(2)
|
|
Includes the Companys
$500.0 million term loan facility, which originally matured
on October 5, 2010. Effective April 12, 2010, the
Company exercised the first of its two one-year extension
options. As a result, the maturity date is now October 5,
2011 and there is one remaining one-year extension option
exercisable by the Company.
|
|
(3)
|
|
Includes $482.5 million face
value of 3.85% convertible unsecured debt with a final maturity
of 2026.
|
The Operating Partnership has a $1.425 billion (net of
$75.0 million which had been committed by a now bankrupt
financial institution and is not available for borrowing)
unsecured revolving credit facility maturing on
February 28, 2012, with the ability to increase available
borrowings by an additional $500.0 million by adding
additional banks to the facility or obtaining the agreement of
existing banks to increase their commitments. Advances under the
credit facility bear interest at variable rates based upon LIBOR
at various interest periods plus a spread (currently 0.50%)
dependent upon the Operating Partnerships credit rating or
based on bids received from the lending group. EQR has
guaranteed the Operating Partnerships credit facility up
to the maximum amount and for the full term of the facility.
As of December 31, 2010, the amount available on the credit
facility was $1.28 billion (net of $147.3 million
which was restricted/dedicated to support letters of credit and
net of the $75.0 million discussed above) and there was no
amount outstanding. During the year ended December 31,
2010, the weighted average interest rate was 0.66%. As of
December 31, 2009, the amount available on the credit
facility was $1.37 billion (net of $56.7 million which
was restricted/dedicated to support letters of credit and net of
the $75.0 million discussed above). The Company did not
draw and had no balance outstanding on its revolving credit
facility at any time during the year ended December 31,
2009.
|
|
11.
|
Derivative
and Other Fair Value Instruments
|
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.
The carrying values of the Companys mortgage notes payable
and unsecured notes were approximately $4.8 billion and
$5.2 billion, respectively, at December 31, 2010. The
fair values of the Companys mortgage notes payable and
unsecured notes were approximately $4.7 billion and
$5.5 billion, respectively, at December 31, 2010. The
carrying values of the Companys mortgage notes payable and
unsecured notes were approximately $4.8 billion and
$4.6 billion, respectively, at December 31, 2009. The
fair values of the Companys mortgage notes payable and
unsecured notes were approximately $4.6 billion and
$4.7 billion, respectively, at December 31, 2009. The
fair values of the Companys financial instruments (other
than mortgage notes payable, unsecured notes, derivative
instruments and investment securities) including cash and cash
equivalents and other financial instruments, approximate their
carrying or contract values.
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.
F-29
The following table summarizes the Companys consolidated
derivative instruments at December 31, 2010 (dollar amounts
are in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward
|
|
Development
|
|
|
Fair Value
|
|
Starting
|
|
Cash Flow
|
|
|
Hedges (1)
|
|
Swaps (2)
|
|
Hedges (3)
|
|
Current Notional Balance
|
|
$
|
315,693
|
|
|
$
|
950,000
|
|
|
$
|
87,422
|
|
Lowest Possible Notional
|
|
$
|
315,693
|
|
|
$
|
950,000
|
|
|
$
|
3,020
|
|
Highest Possible Notional
|
|
$
|
317,694
|
|
|
$
|
950,000
|
|
|
$
|
91,343
|
|
Lowest Interest Rate
|
|
|
2.009%
|
|
|
|
3.478%
|
|
|
|
4.059%
|
|
Highest Interest Rate
|
|
|
4.800%
|
|
|
|
4.695%
|
|
|
|
4.059%
|
|
Earliest Maturity Date
|
|
|
2012
|
|
|
|
2021
|
|
|
|
2011
|
|
Latest Maturity Date
|
|
|
2013
|
|
|
|
2023
|
|
|
|
2011
|
|
|
|
|
(1)
|
|
Fair Value Hedges
Converts outstanding fixed rate debt to a floating interest rate.
|
|
(2)
|
|
Forward Starting Swaps
Designed to partially fix the interest rate in advance of a
planned future debt issuance. These swaps have mandatory
counterparty terminations from 2012 through 2014, and
$350.0 million, $400.0 million and $200.0 million
are designated for 2011, 2012 and 2013 maturities, respectively.
|
|
(3)
|
|
Development Cash Flow
Hedges Converts outstanding floating rate debt to a
fixed interest rate.
|
The following tables provide the location of the Companys
derivative instruments within the accompanying Consolidated
Balance Sheets and their fair market values as of
December 31, 2010 and 2009, respectively (amounts in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Derivatives
|
|
|
Liability Derivatives
|
|
|
|
Balance Sheet
|
|
|
|
|
|
Balance Sheet
|
|
|
|
|
December 31, 2010
|
|
Location
|
|
|
Fair Value
|
|
|
Location
|
|
|
Fair Value
|
|
|
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Hedges
|
|
|
Other assets
|
|
|
$
|
12,521
|
|
|
|
Other liabilities
|
|
|
$
|
-
|
|
Forward Starting Swaps
|
|
|
Other assets
|
|
|
|
3,276
|
|
|
|
Other liabilities
|
|
|
|
(37,756
|
)
|
Development Cash Flow Hedges
|
|
|
Other assets
|
|
|
|
-
|
|
|
|
Other liabilities
|
|
|
|
(1,322
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
$
|
15,797
|
|
|
|
|
|
|
$
|
(39,078
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Derivatives
|
|
|
Liability Derivatives
|
|
|
|
Balance Sheet
|
|
|
|
|
|
Balance Sheet
|
|
|
|
|
December 31, 2009
|
|
Location
|
|
|
Fair Value
|
|
|
Location
|
|
|
Fair Value
|
|
|
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Hedges
|
|
|
Other assets
|
|
|
$
|
5,186
|
|
|
|
Other liabilities
|
|
|
$
|
-
|
|
Forward Starting Swaps
|
|
|
Other assets
|
|
|
|
23,630
|
|
|
|
Other liabilities
|
|
|
|
-
|
|
Development Cash Flow Hedges
|
|
|
Other assets
|
|
|
|
-
|
|
|
|
Other liabilities
|
|
|
|
(3,577
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
$
|
28,816
|
|
|
|
|
|
|
$
|
(3,577
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables provide a summary of the effect of fair
value hedges on the Companys accompanying Consolidated
Statements of Operations for the years ended December 31,
2010 and 2009, respectively (amounts in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Location of Gain/(Loss)
|
|
|
Amount of Gain/(Loss)
|
|
|
|
|
|
Income Statement
|
|
|
Amount of Gain/(Loss)
|
|
December 31, 2010
|
|
Recognized in Income
|
|
|
Recognized in Income
|
|
|
|
|
|
Location of Hedged
|
|
|
Recognized in Income
|
|
Type of Fair Value Hedge
|
|
on Derivative
|
|
|
on Derivative
|
|
|
Hedged Item
|
|
|
Item Gain/(Loss)
|
|
|
on Hedged Item
|
|
|
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Swaps
|
|
|
Interest expense
|
|
|
$
|
7,335
|
|
|
|
Fixed rate debt
|
|
|
|
Interest expense
|
|
|
$
|
(7,335
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
$
|
7,335
|
|
|
|
|
|
|
|
|
|
|
$
|
(7,335
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Location of Gain/(Loss)
|
|
|
Amount of Gain/(Loss)
|
|
|
|
|
|
Income Statement
|
|
|
Amount of Gain/(Loss)
|
|
December 31, 2009
|
|
Recognized in Income
|
|
|
Recognized in Income
|
|
|
|
|
|
Location of Hedged
|
|
|
Recognized in Income
|
|
Type of Fair Value Hedge
|
|
on Derivative
|
|
|
on Derivative
|
|
|
Hedged Item
|
|
|
Item Gain/(Loss)
|
|
|
on Hedged Item
|
|
|
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Swaps
|
|
|
Interest expense
|
|
|
$
|
(1,167
|
)
|
|
|
Fixed rate debt
|
|
|
|
Interest expense
|
|
|
$
|
1,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
$
|
(1,167
|
)
|
|
|
|
|
|
|
|
|
|
$
|
1,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables provide a summary of the effect of cash
flow hedges on the Companys accompanying Consolidated
Statements of Operations for the years ended December 31,
2010 and 2009, respectively (amounts in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Portion
|
|
|
Ineffective Portion
|
|
|
|
Amount of
|
|
|
Location of Gain/(Loss)
|
|
|
Amount of Gain/(Loss)
|
|
|
Location of
|
|
|
Amount of Gain/(Loss)
|
|
|
|
Gain/(Loss)
|
|
|
Reclassified from
|
|
|
Reclassified from
|
|
|
Gain/(Loss)
|
|
|
Reclassified from
|
|
December 31, 2010
|
|
Recognized in OCI
|
|
|
Accumulated OCI
|
|
|
Accumulated OCI
|
|
|
Recognized in Income
|
|
|
Accumulated OCI
|
|
Type of Cash Flow Hedge
|
|
on Derivative
|
|
|
into Income
|
|
|
into Income
|
|
|
on Derivative
|
|
|
into Income
|
|
|
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Starting Swaps/Treasury Locks
|
|
$
|
(68,149
|
)
|
|
|
Interest expense
|
|
|
$
|
(3,338
|
)
|
|
|
N/A
|
|
|
$
|
-
|
|
Development Interest Rate Swaps/Caps
|
|
|
2,255
|
|
|
|
Interest expense
|
|
|
|
-
|
|
|
|
N/A
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
(65,894
|
)
|
|
|
|
|
|
$
|
(3,338
|
)
|
|
|
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Portion
|
|
|
Ineffective Portion
|
|
|
|
Amount of
|
|
|
Location of Gain/(Loss)
|
|
|
Amount of Gain/(Loss)
|
|
|
Location of
|
|
|
Amount of Gain/(Loss)
|
|
|
|
Gain/(Loss)
|
|
|
Reclassified from
|
|
|
Reclassified from
|
|
|
Gain/(Loss)
|
|
|
Reclassified from
|
|
December 31, 2009
|
|
Recognized in OCI
|
|
|
Accumulated OCI
|
|
|
Accumulated OCI
|
|
|
Recognized in Income
|
|
|
Accumulated OCI
|
|
Type of Cash Flow Hedge
|
|
on Derivative
|
|
|
into Income
|
|
|
into Income
|
|
|
on Derivative
|
|
|
into Income
|
|
|
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Starting Swaps/Treasury Locks
|
|
$
|
34,432
|
|
|
|
Interest expense
|
|
|
$
|
(3,724
|
)
|
|
|
N/A
|
|
|
$
|
-
|
|
Development Interest Rate Swaps/Caps
|
|
|
3,244
|
|
|
|
Interest expense
|
|
|
|
-
|
|
|
|
N/A
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
37,676
|
|
|
|
|
|
|
$
|
(3,724
|
)
|
|
|
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2010 and 2009, there were approximately
$58.3 million in deferred losses, net, included in
accumulated other comprehensive (loss) and $4.2 million in
deferred gains, net, included in accumulated other comprehensive
income, respectively, related to derivative instruments. Based
on the estimated fair values of the net derivative instruments
at December 31, 2010, the Company may recognize an
estimated $5.6 million of accumulated other comprehensive
(loss) as additional interest expense during the year ending
December 31, 2011.
In July 2010, the Company paid approximately $10.0 million
to settle a forward starting swap in conjunction with the
issuance of $600.0 million of ten-year fixed rate public
notes. The entire amount was deferred as a component of
accumulated other comprehensive loss and is being recognized as
an increase to interest expense over the term of the notes.
In January 2009, the Company received approximately
$0.4 million to terminate a fair value hedge of interest
rates in conjunction with the public tender of the
Companys 4.75% fixed rate public notes due June 15,
2009. Approximately $0.2 million of the settlement received
was deferred and recognized as a reduction of interest expense
through the maturity on June 15, 2009.
In April and May 2009, the Company received approximately
$10.8 million to terminate six treasury locks in
conjunction with the issuance of a $500.0 million
11-year
mortgage loan. The entire amount was deferred as a component of
accumulated other comprehensive income and is recognized as a
reduction of interest expense over the first ten years of the
mortgage loan.
During the year ended December 31, 2009, the Company sold a
majority of its investment securities, receiving proceeds of
approximately $215.8 million, and recorded a
$4.9 million realized gain on sale (specific
identification) which is included in interest and other income.
The following tables set forth the maturity, amortized cost,
gross unrealized gains and losses, book/
F-31
fair value and interest and other income of the various
investment securities held as of December 31, 2010 and
2009, respectively (amounts in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Assets
|
|
|
|
|
December 31, 2010
|
|
|
|
Amortized
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Book/
|
|
|
Interest and
|
|
Security
|
|
Maturity
|
|
Cost
|
|
|
Gains
|
|
|
Losses
|
|
|
Fair Value
|
|
|
Other Income
|
|
|
Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FDIC-insured certificates of deposit
|
|
Less than one year
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
61
|
|
Other
|
|
N/A
|
|
|
675
|
|
|
|
519
|
|
|
|
-
|
|
|
|
1,194
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Available-for-Sale
and Grand Total
|
|
|
|
$
|
675
|
|
|
$
|
519
|
|
|
$
|
-
|
|
|
$
|
1,194
|
|
|
$
|
61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Assets
|
|
|
|
|
December 31, 2009
|
|
|
|
Amortized
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Book/
|
|
|
Interest and
|
|
Security
|
|
Maturity
|
|
Cost
|
|
|
Gains
|
|
|
Losses
|
|
|
Fair Value
|
|
|
Other Income
|
|
|
Held-to-Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FDIC-insured promissory notes
|
|
Less than one year
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Held-to-Maturity
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FDIC-insured certificates of deposit
|
|
Less than one year
|
|
|
25,000
|
|
|
|
93
|
|
|
|
-
|
|
|
|
25,093
|
|
|
|
491
|
|
Other
|
|
Between one and five years or N/A
|
|
|
675
|
|
|
|
370
|
|
|
|
-
|
|
|
|
1,045
|
|
|
|
7,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Available-for-Sale
|
|
|
|
|
25,675
|
|
|
|
463
|
|
|
|
-
|
|
|
|
26,138
|
|
|
|
8,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand Total
|
|
|
|
$
|
25,675
|
|
|
$
|
463
|
|
|
$
|
-
|
|
|
$
|
26,138
|
|
|
$
|
8,703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A three-level valuation hierarchy exists for disclosure of fair
value measurements. The valuation hierarchy is based upon the
transparency of inputs to the valuation of an asset or liability
as of the measurement date. A financial instruments
categorization within the valuation hierarchy is based upon the
lowest level of input that is significant to the fair value
measurement. The three levels are defined as follows:
|
|
|
|
n
|
Level 1 Inputs to
the valuation methodology are quoted prices (unadjusted) for
identical assets or liabilities in active markets.
|
|
|
n
|
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.
|
|
|
n
|
Level 3 Inputs to
the valuation methodology are unobservable and significant to
the fair value measurement.
|
The Companys derivative positions are valued using models
developed by the respective counterparty as well as models
developed internally by the Company that use as their basis
readily observable market parameters (such as forward yield
curves and credit default swap data) and are classified within
Level 2 of the valuation hierarchy. In addition, employee
holdings other than Common Shares within the supplemental
executive retirement plan (the SERP) have a fair
value of $58.1 million as of December 31, 2010 and are
included in other assets and other liabilities on the
consolidated balance sheet. These SERP investments are valued
using quoted market prices for identical assets and are
classified within Level 1 of the valuation hierarchy.
The Companys investment securities are valued using quoted
market prices or readily available market interest rate data.
The quoted market prices are classified within Level 1 of
the valuation hierarchy and the market interest rate data are
classified within Level 2 of the valuation hierarchy.
Redeemable Noncontrolling Interests Operating
Partnership are valued using the quoted market price of Common
Shares and are classified within Level 2 of the valuation
hierarchy.
The Companys real estate asset impairment charges were the
result of an analysis of the parcels estimated fair value
(determined using internally developed models that were based on
market assumptions and comparable sales data)
(Level 3) compared to their current capitalized
carrying value. The market assumptions used as inputs to the
Companys fair value model include construction costs,
leasing assumptions, growth rates, discount rates, terminal
capitalization rates and development yields, along with the
Companys current plans for each individual asset. The
Company uses data on its existing portfolio of properties and
its recent acquisition and development properties, as well as
similar market data from third party sources, when available, in
determining these inputs. The valuation techniques used to
measure fair value is consistent with how similar assets were
measured in prior periods. See Note 20 for further
discussion.
F-32
The following tables set forth the computation of net income per
share basic and net income per share
diluted (amounts in thousands except per share amounts):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Numerator for net income per share basic and
diluted (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations
|
|
$
|
(19,844
|
)
|
|
$
|
2,931
|
|
|
$
|
(40,054
|
)
|
Allocation to Noncontrolling Interests Operating
Partnership, net
|
|
|
1,555
|
|
|
|
622
|
|
|
|
3,558
|
|
Net loss (income) attributable to Noncontrolling
Interests Partially Owned Properties
|
|
|
726
|
|
|
|
558
|
|
|
|
(2,650
|
)
|
Net income attributable to Preference Interests and Units
|
|
|
-
|
|
|
|
(9
|
)
|
|
|
(15
|
)
|
Preferred distributions
|
|
|
(14,368
|
)
|
|
|
(14,479
|
)
|
|
|
(14,507
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) from continuing operations available to Common Shares,
net of Noncontrolling Interests
|
|
|
(31,931
|
)
|
|
|
(10,377
|
)
|
|
|
(53,668
|
)
|
Discontinued operations, net of Noncontrolling Interests
|
|
|
301,173
|
|
|
|
358,171
|
|
|
|
446,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator for net income per share basic and diluted
(1)
|
|
$
|
269,242
|
|
|
$
|
347,794
|
|
|
$
|
393,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator for net income per share basic and
diluted (1)
|
|
|
282,888
|
|
|
|
273,609
|
|
|
|
270,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share basic
|
|
$
|
0.95
|
|
|
$
|
1.27
|
|
|
$
|
1.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share diluted
|
|
$
|
0.95
|
|
|
$
|
1.27
|
|
|
$
|
1.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) from continuing operations available to Common Shares,
net of Noncontrolling Interests
|
|
$
|
(0.113
|
)
|
|
$
|
(0.038
|
)
|
|
$
|
(0.199
|
)
|
Discontinued operations, net of Noncontrolling Interests
|
|
|
1.065
|
|
|
|
1.309
|
|
|
|
1.655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share basic
|
|
$
|
0.952
|
|
|
$
|
1.271
|
|
|
$
|
1.456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share diluted (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) from continuing operations available to Common Shares
|
|
$
|
(0.113
|
)
|
|
$
|
(0.038
|
)
|
|
$
|
(0.199
|
)
|
Discontinued operations, net
|
|
|
1.065
|
|
|
|
1.309
|
|
|
|
1.655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share diluted
|
|
$
|
0.952
|
|
|
$
|
1.271
|
|
|
$
|
1.456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions declared per Common Share outstanding
|
|
$
|
1.47
|
|
|
$
|
1.64
|
|
|
$
|
1.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Potential common shares issuable
from the assumed conversion of OP Units and the exercise/vesting
of long-term compensation award shares/units are automatically
anti-dilutive and therefore excluded from the diluted earnings
per share calculation as the Company had a loss from continuing
operations for the years ended December 31, 2010, 2009 and
2008, respectively. |
Convertible preferred shares/units that could be converted
into 325,103, 402,501 and 427,090 weighted average Common Shares
for the years ended December 31, 2010, 2009 and 2008,
respectively, were outstanding but were not included in the
computation of diluted earnings per share because the effects
would be anti-dilutive. In addition, the effect of the Common
Shares that could ultimately be issued upon the
conversion/exchange of the Operating Partnerships
$650.0 million ($482.5 million outstanding at
December 31, 2010) exchangeable senior notes was not
included in the computation of diluted earnings per share
because the effects would be anti-dilutive.
For additional disclosures regarding the employee share
options and restricted shares, see Notes 2 and 14.
F-33
|
|
13.
|
Discontinued
Operations
|
The Company has presented separately as discontinued operations
in all periods the results of operations for all consolidated
assets disposed of and all properties held for sale, if any.
The components of discontinued operations are outlined below and
include the results of operations for the respective periods
that the Company owned such assets during each of the years
ended December 31, 2010, 2009 and 2008 (amounts in
thousands).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income
|
|
$
|
67,670
|
|
|
$
|
160,031
|
|
|
$
|
261,924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
67,670
|
|
|
|
160,031
|
|
|
|
261,924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and maintenance
|
|
|
18,659
|
|
|
|
49,088
|
|
|
|
75,079
|
|
Real estate taxes and insurance
|
|
|
7,028
|
|
|
|
18,065
|
|
|
|
28,764
|
|
Property management
|
|
|
-
|
|
|
|
-
|
|
|
|
(62
|
)
|
Depreciation
|
|
|
16,770
|
|
|
|
41,104
|
|
|
|
66,625
|
|
General and administrative
|
|
|
36
|
|
|
|
34
|
|
|
|
29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses
|
|
|
42,493
|
|
|
|
108,291
|
|
|
|
170,435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operating income
|
|
|
25,177
|
|
|
|
51,740
|
|
|
|
91,489
|
|
Interest and other income
|
|
|
497
|
|
|
|
120
|
|
|
|
427
|
|
Other expenses
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
-
|
|
Interest (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense incurred, net
|
|
|
(7,722
|
)
|
|
|
(8,660
|
)
|
|
|
(10,093
|
)
|
Amortization of deferred financing costs
|
|
|
(37
|
)
|
|
|
(561
|
)
|
|
|
(54
|
)
|
Income and other tax (expense) benefit
|
|
|
(44
|
)
|
|
|
1,161
|
|
|
|
1,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
17,871
|
|
|
|
43,799
|
|
|
|
83,610
|
|
Net gain on sales of discontinued operations
|
|
|
297,956
|
|
|
|
335,299
|
|
|
|
392,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net
|
|
$
|
315,827
|
|
|
$
|
379,098
|
|
|
$
|
476,467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Includes expenses paid in the
current period for properties sold or held for sale in prior
periods related to the Companys period of
ownership. |
(2) |
|
Includes only interest expense
specific to secured mortgage notes payable for properties sold
and/or held for sale. |
For the properties sold during 2010, the investment in real
estate, net of accumulated depreciation, and the mortgage notes
payable balances at December 31, 2009 were
$430.5 million and $89.4 million, respectively.
|
|
14.
|
Share
Incentive Plans
|
On May 15, 2002, the shareholders of EQR approved the
Companys 2002 Share Incentive Plan. The maximum
aggregate number of awards that may be granted under this plan
may not exceed 7.5% of the Companys outstanding Common
Shares calculated on a fully diluted basis and
determined annually on the first day of each calendar year. As
of January 1, 2011, this amount equaled 22,785,696, of
which 5,395,739 shares were available for future issuance.
No awards may be granted under the 2002 Share Incentive
Plan, as restated, after February 20, 2012.
Pursuant to the 2002 Share Incentive Plan, as restated, and
the Amended and Restated 1993 Share Option and Share Award
Plan, as amended (collectively the Share Incentive
Plans), officers, trustees and key employees of the
Company may be granted share options to acquire Common Shares
(Options) including non-qualified share options
(NQSOs), incentive share options (ISOs)
and share appreciation rights (SARs), or may be
granted restricted or non-restricted shares, subject to
conditions and restrictions as described in the Share Incentive
Plans. In addition, each year prior to 2007, certain executive
officers of the Company participated in the Companys
performance-based restricted share plan. Effective
January 1, 2007, the Company elected to discontinue the
award of performance-based award grants. Options, SARs,
restricted shares, performance shares and LTIP Units (see
discussion below) are sometimes collectively referred to herein
as Awards.
The Options are generally granted at the fair market value of
the Companys Common Shares at the date of grant, vest in
three equal installments over a three-year period, are
exercisable upon vesting and expire ten years from the date of
grant. The exercise price for all Options under the Share
Incentive Plans is equal to the fair market value of the
underlying Common Shares at the time the Option is granted.
Options exercised result in new Common Shares being issued on
the open market. The Amended and Restated 1993 Share Option
and Share Award Plan, as amended, will terminate at such time as
all outstanding Awards have expired or have been
exercised/vested. The Board of Trustees may at any time amend or
terminate the Share Incentive Plans, but termination will not
affect Awards previously granted. Any Options which had vested
prior to such a termination would remain exercisable by the
holder.
F-34
Restricted shares that have been awarded through
December 31, 2010 generally vest three years from the award
date. In addition, the Companys unvested restricted
shareholders have the same voting rights as any other Common
Share holder. During the three-year period of restriction, the
Companys unvested restricted shareholders receive
quarterly dividend payments on their shares at the same rate and
on the same date as any other Common Share holder. As a result,
dividends paid on unvested restricted shares are included as a
component of retained earnings and have not been considered in
reducing net income available to Common Shares in a manner
similar to the Companys preferred share dividends for the
earnings per share calculation. If employment is terminated
prior to the lapsing of the restriction, the shares are
generally canceled.
In December 2008, the Companys 2002 Share Incentive
Plan was amended to allow for the issuance of long-term
incentive plan units (LTIP Units) to officers of the
Company as an alternative to the Companys restricted
shares. LTIP Units are a class of partnership interests that
under certain conditions, including vesting, are convertible by
the holder into an equal number of OP Units, which are
redeemable by the holder for EQR Common Shares on a
one-for-one
basis or the cash value of such shares at the option of the
Company. In connection with the February 2009 grant of long-term
incentive compensation for services provided during 2008,
officers of the Company were allowed to choose, on a
one-for-one
basis, between restricted shares and LTIP Units. Similar to
restricted shares, LTIP Units generally vest three years from
the award date. In addition, LTIP Unit holders receive quarterly
dividend payments on their LTIP Units at the same rate and on
the same date as any other OP Unit holder. As a result,
dividends paid on LTIP Units are included as a component of
Noncontrolling Interests Operating Partnership and
have not been considered in reducing net income available to
Common Shares in a manner similar to the Companys
preferred share dividends for the earnings per share
calculation. If employment is terminated prior to vesting, the
LTIP Units are generally canceled. An LTIP Unit will
automatically convert to an OP Unit when the capital
account of each LTIP Unit increases
(books-up)
to a specified target. If the capital target is not attained
within ten years following the date of issuance, the LTIP Unit
will automatically be canceled and no compensation will be
payable to the holder of such canceled LTIP Unit.
The Companys Share Incentive Plans provide for certain
benefits upon retirement at or after age 62. As of
November 4, 2008, but effective as of January 1, 2009,
the Company changed the definition of retirement for employees
(including all officers but not non-employee members of the
Companys Board of Trustees) under its Share Incentive
Plans. For employees hired prior to January 1, 2009,
retirement generally will mean the termination of employment
(other than for cause): (i) on or after age 62; or
(ii) prior to age 62 after meeting the requirements of
the Rule of 70 (described below). For employees hired after
January 1, 2009, retirement generally will mean the
termination of employment (other than for cause) after meeting
the requirements of the Rule of 70.
The Rule of 70 is met when an employees years of service
with the Company (which must be at least 15 years) plus his
or her age (which must be at least 55 years) on the date of
termination equals or exceeds 70 years. In addition, the
employee must give the Company at least 6 months
advance written notice of his or her intention to retire and
sign a release upon termination of employment, releasing the
Company from customary claims and agreeing to ongoing
non-competition and employee non-solicitation provisions.
John Powers, Executive Vice President Human
Resources, became eligible for retirement in 2009 as he turned
62. Frederick C. Tuomi, President Property
Management, became eligible for retirement under the Rule of 70
in 2009. Bruce C. Strohm, Executive Vice President and General
Counsel, became eligible for retirement under the Rule of 70 in
2010. David J. Neithercut, Chief Executive Officer and
President, will become eligible for retirement under the Rule of
70 in 2011.
For employees hired prior to January 1, 2009, who retire at
or after age 62, such employees unvested restricted
shares, LTIP Units and share options would immediately vest, and
share options would continue to be exercisable for the balance
of the applicable ten-year option period, as was provided under
the Share Incentive Plans prior to the adoption of the Rule of
70. For all other employees (those hired after January 1,
2009 and those hired before such date who choose to retire prior
to age 62), upon such retirement under the new Rule of 70
definition of retirement of employees, such employees
unvested restricted shares, LTIP Units and share options would
continue to vest per the original vesting schedule (subject to
immediate vesting upon the occurrence of a subsequent change in
control of the Company or the employees death), and
options would continue to be exercisable for the balance of the
applicable ten-year option period, subject to the
employees compliance with the non-competition and employee
non-solicitation provisions. If an employee violates these
provisions after such retirement, all unvested restricted
shares, unvested LTIP Units and unvested and vested share
options at the time of the violation would be void, unless
otherwise determined by the Compensation Committee of the
Companys Board of Trustees.
F-35
The following tables summarize compensation information
regarding the performance shares, restricted shares, LTIP Units,
share options and Employee Share Purchase Plan
(ESPP) for the three years ended December 31,
2010, 2009 and 2008 (amounts in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2010
|
|
|
|
Compensation
|
|
|
Compensation
|
|
|
Compensation
|
|
|
Dividends
|
|
|
|
Expense
|
|
|
Capitalized
|
|
|
Equity
|
|
|
Incurred
|
|
|
Restricted shares
|
|
$
|
8,603
|
|
|
$
|
1,178
|
|
|
$
|
9,781
|
|
|
$
|
1,334
|
|
LTIP Units
|
|
|
2,334
|
|
|
|
190
|
|
|
|
2,524
|
|
|
|
138
|
|
Share options
|
|
|
6,707
|
|
|
|
714
|
|
|
|
7,421
|
|
|
|
-
|
|
ESPP discount
|
|
|
1,231
|
|
|
|
59
|
|
|
|
1,290
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
18,875
|
|
|
$
|
2,141
|
|
|
$
|
21,016
|
|
|
$
|
1,472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2009
|
|
|
|
Compensation
|
|
|
Compensation
|
|
|
Compensation
|
|
|
Dividends
|
|
|
|
Expense
|
|
|
Capitalized
|
|
|
Equity
|
|
|
Incurred
|
|
|
Performance shares
|
|
$
|
103
|
|
|
$
|
76
|
|
|
$
|
179
|
|
|
$
|
-
|
|
Restricted shares
|
|
|
10,065
|
|
|
|
1,067
|
|
|
|
11,132
|
|
|
|
1,627
|
|
LTIP Units
|
|
|
1,036
|
|
|
|
158
|
|
|
|
1,194
|
|
|
|
254
|
|
Share options
|
|
|
5,458
|
|
|
|
538
|
|
|
|
5,996
|
|
|
|
-
|
|
ESPP discount
|
|
|
1,181
|
|
|
|
122
|
|
|
|
1,303
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
17,843
|
|
|
$
|
1,961
|
|
|
$
|
19,804
|
|
|
$
|
1,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2008
|
|
|
|
Compensation
|
|
|
Compensation
|
|
|
Compensation
|
|
|
Dividends
|
|
|
|
Expense
|
|
|
Capitalized
|
|
|
Equity
|
|
|
Incurred
|
|
|
Performance shares
|
|
$
|
(8
|
)
|
|
$
|
-
|
|
|
$
|
(8
|
)
|
|
$
|
-
|
|
Restricted shares
|
|
|
15,761
|
|
|
|
1,517
|
|
|
|
17,278
|
|
|
|
2,175
|
|
Share options
|
|
|
5,361
|
|
|
|
485
|
|
|
|
5,846
|
|
|
|
-
|
|
ESPP discount
|
|
|
1,197
|
|
|
|
92
|
|
|
|
1,289
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
22,311
|
|
|
$
|
2,094
|
|
|
$
|
24,405
|
|
|
$
|
2,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation expense is generally recognized for Awards as
follows:
|
|
|
|
n
|
Restricted shares, LTIP Units and share options
Straight-line method over the vesting period of the options or
shares regardless of cliff or ratable vesting distinctions.
|
|
n
|
Performance shares Accelerated method with each
vesting tranche valued as a separate award, with a separate
vesting date, consistent with the estimated value of the award
at each period end.
|
|
n
|
ESPP discount Immediately upon the purchase of
common shares each quarter.
|
The Company accelerates the recognition of compensation expense
for all Awards for those individuals approaching or meeting the
retirement age criteria discussed above. The total compensation
expense related to Awards not yet vested at December 31,
2010 is $19.5 million, which is expected to be recognized
over a weighted average term of 1.5 years.
See Note 2 for additional information regarding the
Companys share-based compensation.
F-36
The table below summarizes the Award activity of the Share
Incentive Plans for the three years ended December 31,
2010, 2009 and 2008:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
|
|
|
|
|
|
Weighted
|
|
|
|
|
|
Weighted
|
|
|
|
Common
|
|
|
Average
|
|
|
|
|
|
Average Fair
|
|
|
|
|
|
Average Fair
|
|
|
|
Shares Subject
|
|
|
Exercise Price
|
|
|
Restricted
|
|
|
Value per
|
|
|
LTIP
|
|
|
Value per
|
|
|
|
to Options
|
|
|
per Option
|
|
|
Shares
|
|
|
Restricted Share
|
|
|
Units
|
|
|
LTIP Unit
|
|
|
Balance at December 31, 2007
|
|
|
9,185,141
|
|
|
$
|
32.37
|
|
|
|
1,178,188
|
|
|
$
|
42.30
|
|
|
|
|
|
|
|
|
|
Awards granted (1)
|
|
|
1,436,574
|
|
|
$
|
38.46
|
|
|
|
524,983
|
|
|
$
|
38.29
|
|
|
|
|
|
|
|
|
|
Awards exercised/vested (2) (3)
|
|
|
(995,129
|
)
|
|
$
|
24.75
|
|
|
|
(644,131
|
)
|
|
$
|
35.99
|
|
|
|
|
|
|
|
|
|
Awards forfeited
|
|
|
(113,786
|
)
|
|
$
|
43.95
|
|
|
|
(63,029
|
)
|
|
$
|
44.87
|
|
|
|
|
|
|
|
|
|
Awards expired
|
|
|
(39,541
|
)
|
|
$
|
35.91
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2008
|
|
|
9,473,259
|
|
|
$
|
33.94
|
|
|
|
996,011
|
|
|
$
|
44.16
|
|
|
|
-
|
|
|
|
-
|
|
Awards granted (1)
|
|
|
2,541,005
|
|
|
$
|
23.08
|
|
|
|
362,997
|
|
|
$
|
22.62
|
|
|
|
155,189
|
|
|
$
|
21.11
|
|
Awards exercised/vested (2) (3)
|
|
|
(422,713
|
)
|
|
$
|
21.62
|
|
|
|
(340,362
|
)
|
|
$
|
42.67
|
|
|
|
-
|
|
|
|
-
|
|
Awards forfeited
|
|
|
(146,151
|
)
|
|
$
|
30.07
|
|
|
|
(64,280
|
)
|
|
$
|
35.28
|
|
|
|
(573
|
)
|
|
$
|
21.11
|
|
Awards expired
|
|
|
(95,650
|
)
|
|
$
|
32.21
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2009
|
|
|
11,349,750
|
|
|
$
|
32.03
|
|
|
|
954,366
|
|
|
$
|
37.10
|
|
|
|
154,616
|
|
|
$
|
21.11
|
|
Awards granted (1)
|
|
|
1,436,115
|
|
|
$
|
33.59
|
|
|
|
270,805
|
|
|
$
|
34.85
|
|
|
|
94,096
|
|
|
$
|
32.97
|
|
Awards exercised/vested (2) (3)
|
|
|
(2,506,645
|
)
|
|
$
|
28.68
|
|
|
|
(278,183
|
)
|
|
$
|
52.25
|
|
|
|
-
|
|
|
|
-
|
|
Awards forfeited
|
|
|
(76,275
|
)
|
|
$
|
29.43
|
|
|
|
(35,038
|
)
|
|
$
|
30.84
|
|
|
|
(1,204
|
)
|
|
$
|
21.11
|
|
Awards expired
|
|
|
(96,457
|
)
|
|
$
|
42.69
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2010
|
|
|
10,106,488
|
|
|
$
|
33.00
|
|
|
|
911,950
|
|
|
$
|
32.05
|
|
|
|
247,508
|
|
|
$
|
25.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The weighted average grant date
fair value for Options granted during the years ended
December 31, 2010, 2009 and 2008 was $6.18 per share, $3.38
per share and $4.08 per share, respectively.
|
(2)
|
|
The aggregate intrinsic value of
options exercised during the years ended December 31, 2010,
2009 and 2008 was $39.6 million, $2.8 million and
$15.6 million, respectively. These values were calculated
as the difference between the strike price of the underlying
awards and the per share price at which each respective award
was exercised.
|
(3)
|
|
The fair value of restricted shares
vested during the years ended December 31, 2010, 2009 and
2008 was $9.1 million, $8.0 million and
$23.9 million, respectively.
|
The following table summarizes information regarding options
outstanding and exercisable at December 31, 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options Outstanding (1)
|
|
|
Options Exercisable (2)
|
|
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
Weighted
|
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
Remaining
|
|
|
Average
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
Contractual
|
|
|
Exercise
|
|
|
|
|
|
Exercise
|
|
Range of Exercise Prices
|
|
Options
|
|
|
Life in Years
|
|
|
Price
|
|
|
Options
|
|
|
Price
|
|
|
$21.40 to $26.75
|
|
|
2,974,937
|
|
|
|
6.18
|
|
|
$
|
23.42
|
|
|
|
1,403,771
|
|
|
$
|
23.82
|
|
$26.76 to $32.10
|
|
|
2,478,594
|
|
|
|
3.09
|
|
|
$
|
29.99
|
|
|
|
2,478,594
|
|
|
$
|
29.99
|
|
$32.11 to $37.45
|
|
|
1,374,888
|
|
|
|
9.01
|
|
|
$
|
32.96
|
|
|
|
23,546
|
|
|
$
|
32.23
|
|
$37.46 to $42.80
|
|
|
2,363,450
|
|
|
|
5.87
|
|
|
$
|
40.44
|
|
|
|
2,023,316
|
|
|
$
|
40.75
|
|
$42.81 to $48.15
|
|
|
4,202
|
|
|
|
5.32
|
|
|
$
|
45.25
|
|
|
|
4,202
|
|
|
$
|
45.25
|
|
$48.16 to $53.50
|
|
|
910,417
|
|
|
|
6.09
|
|
|
$
|
53.19
|
|
|
|
853,222
|
|
|
$
|
53.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$21.40 to $53.50
|
|
|
10,106,488
|
|
|
|
5.73
|
|
|
$
|
33.00
|
|
|
|
6,786,651
|
|
|
$
|
34.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vested and expected to vest
as of December 31, 2010
|
|
|
9,718,763
|
|
|
|
5.69
|
|
|
$
|
33.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The aggregate intrinsic value of
options outstanding that are vested and expected to vest as of
December 31, 2010 is $184.3 million.
|
(2)
|
|
The aggregate intrinsic value and
weighted average remaining contractual life in years of options
exercisable as of December 31, 2010 is $117.1 million
and 4.4 years, respectively.
|
Note: The aggregate intrinsic values in Notes (1) and
(2) above were both calculated as the excess, if any,
between the Companys closing share price of $51.95 per
share on December 31, 2010 and the strike price of the
underlying awards.
F-37
As of December 31, 2009 and 2008, 7,974,815 Options (with a
weighted average exercise price of $33.55) and 7,522,344 Options
(with a weighted average exercise price of $31.58) were
exercisable, respectively.
The Company established an Employee Share Purchase Plan to
provide each employee and trustee the ability to annually
acquire up to $100,000 of Common Shares of the Company. In 2003,
the Companys shareholders approved an increase in the
aggregate number of Common Shares available under the ESPP to
7,000,000 (from 2,000,000). The Company has 3,403,970 Common
Shares available for purchase under the ESPP at
December 31, 2010. The Common Shares may be purchased
quarterly at a price equal to 85% of the lesser of: (a) the
closing price for a share on the last day of such quarter; and
(b) the greater of: (i) the closing price for a share
on the first day of such quarter, and (ii) the average
closing price for a share for all the business days in the
quarter. The following table summarizes information regarding
the Common Shares issued under the ESPP:
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
2010
|
|
2009
|
|
2008
|
|
|
(Amounts in thousands except share and per share amounts)
|
|
Shares issued
|
|
157,363
|
|
324,394
|
|
195,961
|
Issuance price ranges
|
|
$28.26 $41.16
|
|
$14.21 $24.84
|
|
$23.51 $37.61
|
Issuance proceeds
|
|
$5,112
|
|
$5,292
|
|
$6,170
|
The Company established a defined contribution plan (the
401(k) Plan) to provide retirement benefits for
employees that meet minimum employment criteria. The Company
matches dollar for dollar up to the first 3% of eligible
compensation that a participant contributes to the 401(k) Plan.
Participants are vested in the Companys contributions over
five years. The Company recognized an expense in the amount of
$4.0 million, $3.5 million and $3.8 million for
the years ended December 31, 2010, 2009 and 2008,
respectively.
The Company may also elect to make an annual discretionary
profit-sharing contribution as a percentage of each individual
employees eligible compensation under the 401(k) Plan. The
Company did not make a contribution for the years ended
December 31, 2010, 2009 and 2008 and as such, no expense
was recognized in these years.
The Company established a supplemental executive retirement plan
(the SERP) to provide certain officers and trustees
an opportunity to defer a portion of their eligible compensation
in order to save for retirement. The SERP is restricted to
investments in Company Common Shares, certain marketable
securities that have been specifically approved and cash
equivalents. The deferred compensation liability represented in
the SERP and the securities issued to fund such deferred
compensation liability are consolidated by the Company and
carried on the Companys balance sheet, and the
Companys Common Shares held in the SERP are accounted for
as a reduction to paid in capital.
|
|
16.
|
Distribution
Reinvestment and Share Purchase Plan
|
On November 3, 1997, the Company filed with the SEC a
Form S-3
Registration Statement to register 14,000,000 Common Shares
pursuant to a Distribution Reinvestment and Share Purchase Plan
(the DRIP Plan). The registration statement was
declared effective on November 25, 1997. The remaining
shares available for issuance under the 1997 registration lapsed
in December 2008.
On December 16, 2008, the Company filed with the SEC a
Form S-3
Registration Statement to register 5,000,000 Common Shares under
the DRIP Plan. The registration statement was automatically
declared effective the same day and expires at the earlier of
the date in which all 5,000,000 shares have been issued or
December 15, 2011. The Company has 4,905,736 Common Shares
available for issuance under the DRIP Plan at December 31,
2010.
The DRIP Plan provides holders of record and beneficial owners
of Common Shares and Preferred Shares with a simple and
convenient method of investing cash distributions in additional
Common Shares (which is referred to herein as the Dividend
Reinvestment DRIP Plan). Common Shares may
also be purchased on a monthly basis with optional cash payments
made by participants in the DRIP Plan and interested new
investors, not currently shareholders of the Company, at the
market price of the Common Shares less a discount ranging
between 0% and 5%, as determined in accordance with the DRIP
Plan (which is referred to herein as the Share
Purchase DRIP Plan). Common Shares purchased
under the DRIP Plan may, at the option of the Company, be
directly issued by the Company or purchased by the
Companys transfer agent in the open market using
participants funds.
F-38
|
|
17.
|
Transactions
with Related Parties
|
The Company provided asset and property management services to
certain related entities for properties not owned by the
Company, which terminated in December 2008. Fees received for
providing such services were approximately $0.3 million for
the year ended December 31, 2008.
The Company leases its corporate headquarters from an entity
controlled by EQRs Chairman of the Board of Trustees. The
lease terminates on July 31, 2021. Amounts incurred for
such office space for the years ended December 31, 2010,
2009 and 2008, respectively, were approximately
$2.7 million, $3.0 million and $2.9 million. The
Company believes these amounts equal market rates for such
rental space.
|
|
18.
|
Commitments
and Contingencies
|
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 is party to a housing discrimination lawsuit brought
by a non-profit civil rights organization in April 2006 in the
U.S. District Court for the District of Maryland. The suit
alleges that the Company designed and built approximately 300 of
its properties in violation of the accessibility requirements of
the Fair Housing Act and Americans With Disabilities Act. The
suit seeks actual and punitive damages, injunctive relief
(including modification of non-compliant properties), costs and
attorneys fees. The Company believes it has a number of
viable defenses, including that a majority of the named
properties were completed before the operative dates of the
statutes in question
and/or were
not designed or built by the Company. Accordingly, the Company
is defending the suit vigorously. Due to the pendency of the
Companys defenses and the uncertainty of many other
critical factual and legal issues, it is not possible to
determine or predict the outcome of the suit or a possible loss
or a range of loss, and no amounts have been accrued at
December 31, 2010. While no assurances can be given, the
Company does not believe that the suit, if adversely determined,
would have a material adverse effect on the Company.
The Company does not believe there is any other 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.
The Company has established a reserve and recorded a
corresponding reduction to its net gain on sales of discontinued
operations related to potential liabilities associated with its
condominium conversion activities. The reserve covers potential
product liability related to each conversion. The Company
periodically assesses the adequacy of the reserve and makes
adjustments as necessary. During the year ended
December 31, 2010, the Company recorded additional reserves
of approximately $0.7 million, paid approximately
$2.9 million in claims, settlements and legal fees and
released approximately $1.2 million of remaining reserves
for settled claims. As a result, the Company had total reserves
of approximately $3.3 million at December 31, 2010.
While no assurances can be given, the Company does not believe
that the ultimate resolution of these potential liabilities, if
adversely determined, would have a material adverse effect on
the Company.
As of December 31, 2010, the Company has four projects
totaling 717 apartment units in various stages of development
with estimated completion dates ranging through
September 30, 2012, as well as other completed development
projects that are in various stages of lease up or are
stabilized. Some of the projects are developed solely by the
Company, while others were co-developed with various third party
development partners. The development venture agreements with
partners are primarily deal-specific, with differing terms
regarding profit-sharing, equity contributions, returns on
investment, buy-sell agreements and other customary provisions.
The partner is most often the general or
managing partner of the development venture. The
typical buy-sell arrangements contain appraisal rights and
provisions that provide the right, but not the obligation, for
the Company to acquire the partners interest in the
project at fair market value upon the expiration of a negotiated
time period (typically two to five years after substantial
completion of the project).
During the years ended December 31, 2010, 2009 and 2008,
total operating lease payments incurred for office space,
including a portion of real estate taxes, insurance, repairs and
utilities, and including rent due under three ground leases,
aggregated $7.6 million, $8.4 million and
$8.3 million, respectively.
The Company has entered into a retirement benefits agreement
with its Chairman of the Board of Trustees and deferred
compensation agreements with its Vice Chairman and two former
chief executive officers. During the years ended
December 31, 2010 and 2009, the Company recognized
compensation expense of $0.9 million and $1.2 million,
respectively, related to these agreements. During the year ended
December 31, 2008, the Company reduced compensation expense
by $0.4 million related to these agreements.
F-39
The following table summarizes the Companys contractual
obligations for minimum rent payments under operating leases and
deferred compensation for the next five years and thereafter as
of December 31, 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments Due by Year (in thousands)
|
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
Thereafter
|
|
|
Total
|
|
|
Operating Leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minimum Rent Payments (a)
|
|
$
|
5,478
|
|
|
$
|
4,285
|
|
|
$
|
4,431
|
|
|
$
|
4,736
|
|
|
$
|
4,729
|
|
|
$
|
320,928
|
|
|
$
|
344,587
|
|
Other Long-Term Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Compensation (b)
|
|
|
1,457
|
|
|
|
1,770
|
|
|
|
1,485
|
|
|
|
1,677
|
|
|
|
1,677
|
|
|
|
9,182
|
|
|
|
17,248
|
|
|
|
|
(a)
|
|
Minimum basic rent due for various
office space the Company leases and fixed base rent due on
ground leases for four properties/parcels.
|
(b)
|
|
Estimated payments to the
Companys Chairman, Vice Chairman and two former CEOs
based on planned retirement dates.
|
Operating segments are defined as components of an enterprise
about which separate financial information is available that is
evaluated regularly by senior management. Senior management
decides how resources are allocated and assesses performance on
a monthly basis.
The Companys 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. Senior management evaluates the performance of each
of our apartment communities individually and geographically,
and both on a same store and non-same store basis; however, each
of our apartment communities generally has similar economic
characteristics, residents, products and services. The
Companys operating segments have been aggregated by
geography in a manner identical to that which is provided to its
chief operating decision maker.
The Companys fee and asset management, development
(including its partially owned properties), condominium
conversion and corporate housing (Equity Corporate Housing or
ECH) activities are immaterial and do not
individually meet the threshold requirements of a reportable
segment and as such, have been aggregated in the
Other segment in the tables presented below.
All revenues are from external customers and there is no
customer who contributed 10% or more of the Companys total
revenues during the three years ended December 31, 2010,
2009 or 2008.
The primary financial measure for the Companys rental real
estate segment is net operating income (NOI), which
represents rental income less: 1) property and maintenance
expense; 2) real estate taxes and insurance expense; and
3) property management expense (all as reflected in the
accompanying consolidated statements of operations). The Company
believes that NOI is helpful to investors as a supplemental
measure of its operating performance because it is a direct
measure of the actual operating results of the Companys
apartment communities. Current year NOI is compared to prior
year NOI and current year budgeted NOI as a measure of financial
performance. The following tables present NOI for each segment
from our rental real estate specific to continuing operations
for the years ended December 31, 2010, 2009 and 2008,
respectively, as well as total assets for the years ended
December 31, 2010 and 2009, respectively (amounts in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2010
|
|
|
|
Northeast
|
|
|
Northwest
|
|
|
Southeast
|
|
|
Southwest
|
|
|
Other (3)
|
|
|
Total
|
|
|
Rental income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store (1)
|
|
$
|
574,147
|
|
|
$
|
353,123
|
|
|
$
|
383,475
|
|
|
$
|
417,523
|
|
|
$
|
-
|
|
|
$
|
1,728,268
|
|
Non-same store/other (2) (3)
|
|
|
112,747
|
|
|
|
18,042
|
|
|
|
9,271
|
|
|
|
33,456
|
|
|
|
84,259
|
|
|
|
257,775
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental income
|
|
|
686,894
|
|
|
|
371,165
|
|
|
|
392,746
|
|
|
|
450,979
|
|
|
|
84,259
|
|
|
|
1,986,043
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store (1)
|
|
|
215,365
|
|
|
|
132,331
|
|
|
|
157,518
|
|
|
|
149,449
|
|
|
|
-
|
|
|
|
654,663
|
|
Non-same store/other (2) (3)
|
|
|
54,780
|
|
|
|
7,950
|
|
|
|
4,126
|
|
|
|
15,136
|
|
|
|
69,823
|
|
|
|
151,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
270,145
|
|
|
|
140,281
|
|
|
|
161,644
|
|
|
|
164,585
|
|
|
|
69,823
|
|
|
|
806,478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store (1)
|
|
|
358,782
|
|
|
|
220,792
|
|
|
|
225,957
|
|
|
|
268,074
|
|
|
|
-
|
|
|
|
1,073,605
|
|
Non-same store/other (2) (3)
|
|
|
57,967
|
|
|
|
10,092
|
|
|
|
5,145
|
|
|
|
18,320
|
|
|
|
14,436
|
|
|
|
105,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total NOI
|
|
$
|
416,749
|
|
|
$
|
230,884
|
|
|
$
|
231,102
|
|
|
$
|
286,394
|
|
|
$
|
14,436
|
|
|
$
|
1,179,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
6,211,534
|
|
|
$
|
2,665,707
|
|
|
$
|
2,602,318
|
|
|
$
|
3,240,170
|
|
|
$
|
1,464,465
|
|
|
$
|
16,184,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-40
|
|
|
(1)
|
|
Same store primarily includes all
properties acquired or completed and stabilized prior to
January 1, 2009, less properties subsequently sold, which
represented 112,042 apartment units.
|
(2)
|
|
Non-same store primarily includes
properties acquired after January 1, 2009, plus any
properties in
lease-up and
not stabilized as of January 1, 2009.
|
(3)
|
|
Other includes ECH, development,
condominium conversion overhead of $0.6 million and other
corporate operations. Also reflects a $10.5 million
elimination of rental income recorded in Northeast, Northwest,
Southeast and Southwest operating segments related to ECH.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2009
|
|
|
|
Northeast
|
|
|
Northwest
|
|
|
Southeast
|
|
|
Southwest
|
|
|
Other (3)
|
|
|
Total
|
|
|
Rental income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store (1)
|
|
$
|
566,518
|
|
|
$
|
357,502
|
|
|
$
|
383,239
|
|
|
$
|
423,076
|
|
|
$
|
-
|
|
|
$
|
1,730,335
|
|
Non-same store/other (2) (3)
|
|
|
23,195
|
|
|
|
2,010
|
|
|
|
4,268
|
|
|
|
16,985
|
|
|
|
69,364
|
|
|
|
115,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental income
|
|
|
589,713
|
|
|
|
359,512
|
|
|
|
387,507
|
|
|
|
440,061
|
|
|
|
69,364
|
|
|
|
1,846,157
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store (1)
|
|
|
211,352
|
|
|
|
129,696
|
|
|
|
158,977
|
|
|
|
148,483
|
|
|
|
-
|
|
|
|
648,508
|
|
Non-same store/other (2) (3)
|
|
|
12,798
|
|
|
|
1,851
|
|
|
|
1,727
|
|
|
|
9,418
|
|
|
|
68,692
|
|
|
|
94,486
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
224,150
|
|
|
|
131,547
|
|
|
|
160,704
|
|
|
|
157,901
|
|
|
|
68,692
|
|
|
|
742,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store (1)
|
|
|
355,166
|
|
|
|
227,806
|
|
|
|
224,262
|
|
|
|
274,593
|
|
|
|
-
|
|
|
|
1,081,827
|
|
Non-same store/other (2) (3)
|
|
|
10,397
|
|
|
|
159
|
|
|
|
2,541
|
|
|
|
7,567
|
|
|
|
672
|
|
|
|
21,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total NOI
|
|
$
|
365,563
|
|
|
$
|
227,965
|
|
|
$
|
226,803
|
|
|
$
|
282,160
|
|
|
$
|
672
|
|
|
$
|
1,103,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
5,435,072
|
|
|
$
|
2,474,775
|
|
|
$
|
2,674,499
|
|
|
$
|
2,971,396
|
|
|
$
|
1,861,773
|
|
|
$
|
15,417,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Same store primarily includes all
properties acquired or completed and stabilized prior to
January 1, 2009, less properties subsequently sold, which
represented 112,042 apartment units.
|
|
(2)
|
|
Non-same store primarily includes
properties acquired after January 1, 2009, plus any
properties in
lease-up and
not stabilized as of January 1, 2009.
|
|
(3)
|
|
Other includes ECH, development,
condominium conversion overhead of $1.4 million and other
corporate operations. Also reflects a $9.6 million
elimination of rental income recorded in Northeast, Northwest,
Southeast and Southwest operating segments related to ECH.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2008
|
|
|
|
Northeast
|
|
|
Northwest
|
|
|
Southeast
|
|
|
Southwest
|
|
|
Other (3)
|
|
|
Total
|
|
|
Rental income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store (1)
|
|
$
|
553,712
|
|
|
$
|
372,197
|
|
|
$
|
407,871
|
|
|
$
|
444,403
|
|
|
$
|
-
|
|
|
$
|
1,778,183
|
|
Non-same store/other (2) (3)
|
|
|
37,000
|
|
|
|
18,347
|
|
|
|
6,090
|
|
|
|
23,400
|
|
|
|
101,934
|
|
|
|
186,771
|
|
Properties sold in 2010 (4)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(88,681
|
)
|
|
|
(88,681
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental income
|
|
|
590,712
|
|
|
|
390,544
|
|
|
|
413,961
|
|
|
|
467,803
|
|
|
|
13,253
|
|
|
|
1,876,273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store (1)
|
|
|
199,673
|
|
|
|
128,448
|
|
|
|
166,022
|
|
|
|
150,980
|
|
|
|
-
|
|
|
|
645,123
|
|
Non-same store/other (2)(3)
|
|
|
16,806
|
|
|
|
7,664
|
|
|
|
2,995
|
|
|
|
14,363
|
|
|
|
101,742
|
|
|
|
143,570
|
|
Properties sold in 2010 (4)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(31,205
|
)
|
|
|
(31,205
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
216,479
|
|
|
|
136,112
|
|
|
|
169,017
|
|
|
|
165,343
|
|
|
|
70,537
|
|
|
|
757,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store (1)
|
|
|
354,039
|
|
|
|
243,749
|
|
|
|
241,849
|
|
|
|
293,423
|
|
|
|
-
|
|
|
|
1,133,060
|
|
Non-same store/other (2) (3)
|
|
|
20,194
|
|
|
|
10,683
|
|
|
|
3,095
|
|
|
|
9,037
|
|
|
|
192
|
|
|
|
43,201
|
|
Properties sold in 2010 (4)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(57,476
|
)
|
|
|
(57,476
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total NOI
|
|
$
|
374,233
|
|
|
$
|
254,432
|
|
|
$
|
244,944
|
|
|
$
|
302,460
|
|
|
$
|
(57,284
|
)
|
|
$
|
1,118,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Same store primarily includes all
properties acquired or completed and stabilized prior to
January 1, 2008, less properties subsequently sold, which
represented 113,598 apartment units.
|
(2)
|
|
Non-same store primarily includes
properties acquired after January 1, 2008, plus any
properties in
lease-up and
not stabilized as of January 1, 2008.
|
(3)
|
|
Other includes ECH, development,
condominium conversion overhead of $2.8 million and other
corporate operations. Also reflects a $13.6 million
elimination of rental income recorded in Northeast, Northwest,
Southeast and Southwest operating segments related to ECH.
|
(4)
|
|
Reflects discontinued operations
for properties sold during 2010.
|
Note: Markets included in the above geographic segments are as
follows:
(a) Northeast New England (excluding Boston),
Boston, New York Metro, DC Northern Virginia and Suburban
Maryland.
(b) Northwest Denver, Portland,
San Francisco Bay Area and Seattle/Tacoma.
(c) Southeast Atlanta, Jacksonville, Orlando,
South Florida and Tampa.
(d) Southwest Albuquerque, Inland Empire, Los
Angeles, Orange County, Phoenix and San Diego.
F-41
The following table presents a reconciliation of NOI from our
rental real estate specific to continuing operations for the
years ended December 31, 2010, 2009 and 2008, respectively
(amounts in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Rental income
|
|
$
|
1,986,043
|
|
|
$
|
1,846,157
|
|
|
$
|
1,876,273
|
|
Property and maintenance expense
|
|
|
(498,634
|
)
|
|
|
(464,809
|
)
|
|
|
(485,754
|
)
|
Real estate taxes and insurance expense
|
|
|
(226,718
|
)
|
|
|
(206,247
|
)
|
|
|
(194,671
|
)
|
Property management expense
|
|
|
(81,126
|
)
|
|
|
(71,938
|
)
|
|
|
(77,063
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
(806,478
|
)
|
|
|
(742,994
|
)
|
|
|
(757,488
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income
|
|
$
|
1,179,565
|
|
|
$
|
1,103,163
|
|
|
$
|
1,118,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20.
|
Subsequent
Events/Other
|
Subsequent
Events
Subsequent to December 31, 2010, the Company:
|
|
|
|
n
|
Acquired two apartment properties
consisting of 521 apartment units for $137.1 million;
|
|
|
n
|
Sold two consolidated apartment
properties consisting of 600 apartment units for
$32.7 million;
|
|
|
n
|
Repaid $173.0 million in
mortgage loans;
|
|
|
n
|
Issued 3.0 million Common
Shares at an average price of $50.84 per share for total
consideration of $154.5 million under the Companys
ATM share offering program; and
|
|
|
n
|
Increased its availability for
issuance under the Companys ATM share offering program to
10,000,000 Common Shares.
|
Other
During the year ended December 31, 2010, the Company
recorded a $45.4 million non-cash asset impairment charge
on two parcels of land held for development as a result of
changes in the Companys future plans for those parcels.
The Company now intends to sell one parcel in the near term and
contemplates a joint venture structure for the other,
necessitating this impairment charge. During the year ended
December 31, 2009, the Company recorded an
$11.1 million non-cash asset impairment charge on a parcel
of land held for development. During the year ended
December 31, 2008, the Company recorded $116.4 million
of non-cash asset impairment charges on land held for
development related to five potential development projects that
will no longer be pursued. These charges were the result of an
analysis of each parcels estimated fair value (determined
using internally developed models that were based on market
assumptions and comparable sales data) compared to its current
capitalized carrying value. The market assumptions used as
inputs to the Companys fair value model include
construction costs, leasing assumptions, growth rates, discount
rates, terminal capitalization rates and development yields,
along with the Companys current plans for each individual
asset. The Company uses data on its existing portfolio of
properties and its recent acquisition and development
properties, as well as similar market data from third party
sources, when available, in determining these inputs.
During the years ended December 31, 2010, 2009 and 2008,
the Company incurred charges of $6.6 million,
$1.7 million and $0.2 million, respectively, related
to property acquisition costs, such as survey, title and legal
fees, on the acquisition of operating properties and
$5.3 million, $4.8 million and $5.6 million,
respectively, related to the write-off of various pursuit and
out-of-pocket
costs for terminated acquisition, disposition and development
transactions. These costs, totaling $11.9 million,
$6.5 million and $5.8 million, respectively, are
included in other expenses in the accompanying consolidated
statements of operations.
During the year ended December 31, 2008, the Company
recognized $0.7 million of forfeited deposits for various
terminated transactions, which are included in interest and
other income. During the year ended December 31, 2010, an
arbitration panel awarded commissions, interest and costs in the
amount of $1.7 million to the listing and marketing agent
related to 38 potential condo sales at one of the Companys
properties. In addition, during 2010, 2009 and 2008, the Company
received $5.2 million, $0.2 million and
$1.7 million, respectively, for the settlement of
litigation/insurance claims, which are included in interest and
other income in the accompanying consolidated statements of
operations.
On July 16, 2010, a portion of the parking garage collapsed
at one of the Companys rental properties (Prospect Towers
in Hackensack, New Jersey). The Company estimates that the costs
related to such collapse (both expensed and capitalized),
including providing for residents interim needs, lost
revenue and garage reconstruction, will be approximately
$12.0 million, after insurance reimbursements of
$8.0 million. Costs to rebuild the garage will be
capitalized as incurred. Other costs, like those
F-42
to accommodate displaced residents, lost revenue due to a
portion of the property being temporarily unavailable for
occupancy and legal costs, will reduce earnings as they are
incurred. Generally, insurance proceeds will be recorded as
increases to earnings as they are received. An impairment charge
of $1.3 million was recognized to write-off the net book
value of the collapsed garage. During the year ended
December 31, 2010, the Company received approximately
$4.0 million in insurance proceeds which fully offset the
impairment charge and partially offset expenses of
$5.5 million that were recorded relating to this loss and
are included in real estate taxes and insurance on the
consolidated statements of operations.
|
|
21.
|
Quarterly
Financial Data (Unaudited)
|
The following unaudited quarterly data has been prepared on the
basis of a December 31 year-end. All amounts have also been
restated in accordance with the guidance on discontinued
operations and reflect dispositions
and/or
properties held for sale through December 31, 2010. Amounts
are in thousands, except for per share amounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
|
|
|
Second
|
|
|
Third
|
|
|
Fourth
|
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
2010
|
|
3/31
|
|
|
6/30
|
|
|
9/30
|
|
|
12/31
|
|
|
Total revenues (1)
|
|
$
|
472,082
|
|
|
$
|
494,541
|
|
|
$
|
511,772
|
|
|
$
|
517,124
|
|
Operating income (1)
|
|
|
112,382
|
|
|
|
115,247
|
|
|
|
121,047
|
|
|
|
93,325
|
|
(Loss) income from continuing operations (1)
|
|
|
(7,267
|
)
|
|
|
4,714
|
|
|
|
14,930
|
|
|
|
(32,221
|
)
|
Discontinued operations, net (1)
|
|
|
65,123
|
|
|
|
5,375
|
|
|
|
14,896
|
|
|
|
230,433
|
|
Net income *
|
|
|
57,856
|
|
|
|
10,089
|
|
|
|
29,826
|
|
|
|
198,212
|
|
Net income available to Common Shares
|
|
|
51,863
|
|
|
|
6,343
|
|
|
|
25,166
|
|
|
|
185,870
|
|
Earnings per share basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Common Shares
|
|
$
|
0.18
|
|
|
$
|
0.02
|
|
|
$
|
0.09
|
|
|
$
|
0.65
|
|
Weighted average Common Shares outstanding
|
|
|
280,645
|
|
|
|
282,217
|
|
|
|
282,717
|
|
|
|
285,916
|
|
Earnings per share diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Common Shares
|
|
$
|
0.18
|
|
|
$
|
0.02
|
|
|
$
|
0.09
|
|
|
$
|
0.65
|
|
Weighted average Common Shares outstanding
|
|
|
280,645
|
|
|
|
299,642
|
|
|
|
300,379
|
|
|
|
285,916
|
|
|
|
|
(1)
|
|
The amounts presented for the first
three quarters of 2010 are not equal to the same amounts
previously reported in the respective
Form 10-Qs
filed with the SEC for each period as a result of changes in
discontinued operations due to additional property sales which
occurred throughout 2010. Below is a reconciliation to the
amounts previously reported:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
|
|
|
Second
|
|
|
Third
|
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
2010
|
|
3/31
|
|
|
6/30
|
|
|
9/30
|
|
|
Total revenues previously reported in
Form 10-Q
|
|
$
|
488,690
|
|
|
$
|
510,937
|
|
|
$
|
527,356
|
|
Total revenues subsequently reclassified to discontinued
operations
|
|
|
(16,608
|
)
|
|
|
(16,396
|
)
|
|
|
(15,584
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues disclosed in
Form 10-K
|
|
$
|
472,082
|
|
|
$
|
494,541
|
|
|
$
|
511,772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income previously reported in
Form 10-Q
|
|
$
|
118,596
|
|
|
$
|
121,529
|
|
|
$
|
127,196
|
|
Operating income subsequently reclassified to discontinued
operations
|
|
|
(6,214
|
)
|
|
|
(6,282
|
)
|
|
|
(6,149
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income disclosed in
Form 10-K
|
|
$
|
112,382
|
|
|
$
|
115,247
|
|
|
$
|
121,047
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations previously reported in
Form 10-Q
|
|
$
|
(2,208
|
)
|
|
$
|
9,406
|
|
|
$
|
19,884
|
|
Income from continuing operations subsequently reclassified to
discontinued operations
|
|
|
(5,059
|
)
|
|
|
(4,692
|
)
|
|
|
(4,954
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations disclosed in
Form 10-K
|
|
$
|
(7,267
|
)
|
|
$
|
4,714
|
|
|
$
|
14,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net previously reported in
Form 10-Q
|
|
$
|
60,064
|
|
|
$
|
683
|
|
|
$
|
9,942
|
|
Discontinued operations, net from properties sold subsequent to
the respective reporting period
|
|
|
5,059
|
|
|
|
4,692
|
|
|
|
4,954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net disclosed in
Form 10-K
|
|
$
|
65,123
|
|
|
$
|
5,375
|
|
|
$
|
14,896
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
|
|
|
Second
|
|
|
Third
|
|
|
Fourth
|
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
2009
|
|
3/31
|
|
|
6/30
|
|
|
9/30
|
|
|
12/31
|
|
|
Total revenues (2)
|
|
$
|
466,177
|
|
|
$
|
464,225
|
|
|
$
|
464,827
|
|
|
$
|
461,274
|
|
Operating income (2)
|
|
|
126,283
|
|
|
|
120,661
|
|
|
|
122,703
|
|
|
|
126,954
|
|
Income (loss) from continuing operations (2)
|
|
|
7,858
|
|
|
|
7,813
|
|
|
|
4,256
|
|
|
|
(16,996
|
)
|
Discontinued operations, net (2)
|
|
|
77,563
|
|
|
|
98,119
|
|
|
|
139,109
|
|
|
|
64,307
|
|
Net income *
|
|
|
85,421
|
|
|
|
105,932
|
|
|
|
143,365
|
|
|
|
47,311
|
|
Net income available to Common Shares
|
|
|
77,175
|
|
|
|
96,585
|
|
|
|
132,362
|
|
|
|
41,672
|
|
Earnings per share basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Common Shares
|
|
$
|
0.28
|
|
|
$
|
0.35
|
|
|
$
|
0.48
|
|
|
$
|
0.15
|
|
Weighted average Common Shares outstanding
|
|
|
272,324
|
|
|
|
272,901
|
|
|
|
273,658
|
|
|
|
275,519
|
|
Earnings per share diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Common Shares
|
|
$
|
0.28
|
|
|
$
|
0.35
|
|
|
$
|
0.48
|
|
|
$
|
0.15
|
|
Weighted average Common Shares outstanding
|
|
|
288,853
|
|
|
|
289,338
|
|
|
|
290,215
|
|
|
|
275,519
|
|
|
|
|
(2)
|
|
The amounts presented for the four
quarters of 2009 are not equal to the same amounts previously
reported in either the
Form 8-K
filed with the SEC on September 14, 2010 (for the first,
second and fourth quarters of 2009) or in the third quarter
2010
Form 10-Q
filed with the SEC on November 4, 2010 (for the third
quarter of 2009) primarily as a result of changes in
discontinued operations due to additional property sales which
occurred throughout 2010. Below is a reconciliation to the
amounts previously reported:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
|
|
|
Second
|
|
|
Third
|
|
|
Fourth
|
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
2009
|
|
3/31
|
|
|
6/30
|
|
|
9/30
|
|
|
12/31
|
|
|
Total revenues previously reported in September 2010
Form 8-K/Form 10-Q
|
|
$
|
482,475
|
|
|
$
|
480,333
|
|
|
$
|
480,241
|
|
|
$
|
477,365
|
|
Total revenues subsequently reclassified to discontinued
operations
|
|
|
(16,298
|
)
|
|
|
(16,108
|
)
|
|
|
(15,414
|
)
|
|
|
(16,091
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues disclosed in
Form 10-K
|
|
$
|
466,177
|
|
|
$
|
464,225
|
|
|
$
|
464,827
|
|
|
$
|
461,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income previously reported in September 2010
Form 8-K/Form 10-Q
|
|
$
|
132,245
|
|
|
$
|
126,944
|
|
|
$
|
128,655
|
|
|
$
|
133,239
|
|
Operating income subsequently reclassified to discontinued
operations
|
|
|
(5,962
|
)
|
|
|
(6,283
|
)
|
|
|
(5,952
|
)
|
|
|
(6,285
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income disclosed in
Form 10-K
|
|
$
|
126,283
|
|
|
$
|
120,661
|
|
|
$
|
122,703
|
|
|
$
|
126,954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations previously reported in
September 2010
Form 8-K/Form 10-Q
|
|
$
|
11,948
|
|
|
$
|
12,339
|
|
|
$
|
9,029
|
|
|
$
|
(13,146
|
)
|
Income from continuing operations subsequently reclassified to
discontinued operations
|
|
|
(4,090
|
)
|
|
|
(4,526
|
)
|
|
|
(4,773
|
)
|
|
|
(3,850
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations disclosed in
Form 10-K
|
|
$
|
7,858
|
|
|
$
|
7,813
|
|
|
$
|
4,256
|
|
|
$
|
(16,996
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net previously reported in September
2010
Form 8-K/Form
10-Q
|
|
$
|
73,473
|
|
|
$
|
93,593
|
|
|
$
|
134,336
|
|
|
$
|
60,457
|
|
Discontinued operations, net from properties sold subsequent to
the respective reporting period
|
|
|
4,090
|
|
|
|
4,526
|
|
|
|
4,773
|
|
|
|
3,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net disclosed in
Form 10-K
|
|
$
|
77,563
|
|
|
$
|
98,119
|
|
|
$
|
139,109
|
|
|
$
|
64,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* The Company did not have any extraordinary items or
cumulative effect of change in accounting principle during the
years ended December 31, 2010 and 2009. Therefore, income
before extraordinary items and cumulative effect of change in
accounting principle is not shown as it was equal to the net
income amounts disclosed above.
F-44
Schedule III
Real Estate and Accumulated Depreciation Disclosure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Properties
|
|
|
|
|
|
Investment in Real
|
|
|
Accumulated
|
|
|
Investment in Real
|
|
|
|
|
|
|
(H)
|
|
|
Units (H)
|
|
|
Estate, Gross
|
|
|
Depreciation
|
|
|
Estate, Net
|
|
|
Encumbrances
|
|
|
|
|
Wholly Owned Unencumbered
|
|
|
288
|
|
|
|
80,239
|
|
|
$
|
12,555,402,637
|
|
|
$
|
(2,847,912,228
|
)
|
|
$
|
9,707,490,409
|
|
|
$
|
-
|
|
Wholly Owned Encumbered
|
|
|
137
|
|
|
|
39,395
|
|
|
|
6,016,421,350
|
|
|
|
(1,346,626,508
|
)
|
|
|
4,669,794,842
|
|
|
|
2,595,245,052
|
|
Portfolio/Entity Encumbrances (1)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,417,683,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholly Owned Properties
|
|
|
425
|
|
|
|
119,634
|
|
|
|
18,571,823,987
|
|
|
|
(4,194,538,736
|
)
|
|
|
14,377,285,251
|
|
|
|
4,012,928,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Partially Owned Unencumbered
|
|
|
-
|
|
|
|
-
|
|
|
|
25,130,204
|
|
|
|
-
|
|
|
|
25,130,204
|
|
|
|
-
|
|
Partially Owned Encumbered
|
|
|
24
|
|
|
|
5,232
|
|
|
|
1,105,416,801
|
|
|
|
(142,817,905
|
)
|
|
|
962,598,896
|
|
|
|
749,967,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Partially Owned Properties
|
|
|
24
|
|
|
|
5,232
|
|
|
|
1,130,547,005
|
|
|
|
(142,817,905
|
)
|
|
|
987,729,100
|
|
|
|
749,967,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Unencumbered Properties
|
|
|
288
|
|
|
|
80,239
|
|
|
|
12,580,532,841
|
|
|
|
(2,847,912,228
|
)
|
|
|
9,732,620,613
|
|
|
|
-
|
|
Total Encumbered Properties
|
|
|
161
|
|
|
|
44,627
|
|
|
|
7,121,838,151
|
|
|
|
(1,489,444,413
|
)
|
|
|
5,632,393,738
|
|
|
|
4,762,895,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consolidated Investment in Real Estate
|
|
|
449
|
|
|
|
124,866
|
|
|
$
|
19,702,370,992
|
|
|
$
|
(4,337,356,641
|
)
|
|
$
|
15,365,014,351
|
|
|
$
|
4,762,895,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
See attached Encumbrances
Reconciliation.
|
S-1
EQUITY
RESIDENTIAL
Schedule III - Real Estate and Accumulated
Depreciation
Encumbrances Reconciliation
December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
|
|
|
|
|
|
Properties
|
|
See Properties
|
|
|
|
Portfolio/Entity
Encumbrances
|
|
Encumbered by
|
|
With Note:
|
|
Amount
|
|
|
EQR-Bond Partnership
|
|
6
|
|
I
|
|
$
|
51,670,000
|
|
EQR-Fanwell 2007 LP
|
|
7
|
|
J
|
|
|
223,138,000
|
|
EQR-Wellfan 2008 LP (R)
|
|
15
|
|
K
|
|
|
550,000,000
|
|
EQR-SOMBRA 2008 LP
|
|
18
|
|
L
|
|
|
543,000,000
|
(1)
|
Other
|
|
-
|
|
-
|
|
|
49,875,780
|
(1)
|
|
|
|
|
|
|
|
|
|
Portfolio/Entity Encumbrances
|
|
46
|
|
|
|
|
1,417,683,780
|
|
Individual Property Encumbrances
|
|
|
|
|
|
|
3,345,212,105
|
|
|
|
|
|
|
|
|
|
|
Total Encumbrances per Financial Statements
|
|
|
|
|
|
$
|
4,762,895,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Temporary letters of credit
supported by the Companys revolving credit facility
and/or a
temporary guaranty from the Operating Partnership were posted as
collateral in place of sold properties. Property substitutions
closed in January 2011 and the letters of credit and guaranty
were terminated.
|
S-2
EQUITY
RESIDENTIAL
Schedule III Real Estate and Accumulated
Depreciation
(Amounts in thousands)
The changes in total real estate for the years ended
December 31, 2010, 2009 and 2008 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Balance, beginning of year
|
|
$
|
18,465,144
|
|
|
$
|
18,690,239
|
|
|
$
|
18,333,350
|
|
Acquisitions and development
|
|
|
1,789,948
|
|
|
|
512,977
|
|
|
|
995,026
|
|
Improvements
|
|
|
141,199
|
|
|
|
125,965
|
|
|
|
172,165
|
|
Dispositions and other
|
|
|
(693,920
|
)
|
|
|
(864,037
|
)
|
|
|
(810,302
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of year
|
|
$
|
19,702,371
|
|
|
$
|
18,465,144
|
|
|
$
|
18,690,239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The changes in accumulated depreciation for the years ended
December 31, 2010, 2009 and 2008 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Balance, beginning of year
|
|
$
|
3,877,564
|
|
|
$
|
3,561,300
|
|
|
$
|
3,170,125
|
|
Depreciation
|
|
|
673,403
|
|
|
|
600,375
|
|
|
|
602,908
|
|
Dispositions and other
|
|
|
(213,610
|
)
|
|
|
(284,111
|
)
|
|
|
(211,733
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of year
|
|
$
|
4,337,357
|
|
|
$
|
3,877,564
|
|
|
$
|
3,561,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S-3
EQUITY
RESIDENTIAL
Schedule III - Real Estate and Accumulated
Depreciation
December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Initial Cost to
|
|
|
|
|
|
Acquisition
|
|
|
|
|
|
at Close of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
|
|
|
Company
|
|
|
|
|
|
(Improvements, net) (E)
|
|
|
|
|
|
Period 12/31/10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of
|
|
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Accumulated
|
|
|
Investment in Real
|
|
|
|
Apartment Name
|
|
Location
|
|
Construction
|
|
Units (H)
|
|
|
Land
|
|
|
Fixtures
|
|
|
Land
|
|
|
Fixtures
|
|
|
Land
|
|
|
Fixtures (A)
|
|
|
Total (B)
|
|
|
Depreciation (C)
|
|
|
Estate, Net at 12/31/10 (B)
|
|
|
Encumbrances
|
|
|
EQR Wholly Owned Unencumbered:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
500 West 23rd Street (fka 10 Chelsea)
|
|
New York, NY
|
|
(F)
|
|
|
|
|
|
$
|
-
|
|
|
$
|
27,382,360
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
27,382,360
|
|
|
$
|
27,382,360
|
|
|
$
|
-
|
|
|
$
|
27,382,360
|
|
|
$
|
-
|
1210 Mass
|
|
Washington, D.C. (G)
|
|
2004
|
|
|
144
|
|
|
|
9,213,512
|
|
|
|
36,559,189
|
|
|
|
-
|
|
|
|
285,543
|
|
|
|
9,213,512
|
|
|
|
36,844,732
|
|
|
|
46,058,244
|
|
|
|
(7,702,999
|
)
|
|
|
38,355,245
|
|
|
|
-
|
1401 Joyce on Pentagon Row
|
|
Arlington, VA
|
|
2004
|
|
|
326
|
|
|
|
9,780,000
|
|
|
|
89,680,000
|
|
|
|
-
|
|
|
|
163,567
|
|
|
|
9,780,000
|
|
|
|
89,843,567
|
|
|
|
99,623,567
|
|
|
|
(7,954,463
|
)
|
|
|
91,669,104
|
|
|
|
-
|
1660 Peachtree
|
|
Atlanta, GA
|
|
1999
|
|
|
355
|
|
|
|
7,924,126
|
|
|
|
23,602,563
|
|
|
|
-
|
|
|
|
2,032,029
|
|
|
|
7,924,126
|
|
|
|
25,634,592
|
|
|
|
33,558,718
|
|
|
|
(7,213,204
|
)
|
|
|
26,345,514
|
|
|
|
-
|
2201 Pershing Drive
|
|
Arlington, VA
|
|
(F)
|
|
|
-
|
|
|
|
12,054,081
|
|
|
|
2,652,636
|
|
|
|
-
|
|
|
|
-
|
|
|
|
12,054,081
|
|
|
|
2,652,636
|
|
|
|
14,706,717
|
|
|
|
-
|
|
|
|
14,706,717
|
|
|
|
-
|
2400 M St
|
|
Washington, D.C. (G)
|
|
2006
|
|
|
359
|
|
|
|
30,006,593
|
|
|
|
114,013,785
|
|
|
|
-
|
|
|
|
732,059
|
|
|
|
30,006,593
|
|
|
|
114,745,844
|
|
|
|
144,752,437
|
|
|
|
(21,822,792
|
)
|
|
|
122,929,645
|
|
|
|
-
|
420 East 80th Street
|
|
New York, NY
|
|
1961
|
|
|
155
|
|
|
|
39,277,000
|
|
|
|
23,026,984
|
|
|
|
-
|
|
|
|
2,501,381
|
|
|
|
39,277,000
|
|
|
|
25,528,365
|
|
|
|
64,805,365
|
|
|
|
(5,980,711
|
)
|
|
|
58,824,654
|
|
|
|
-
|
425 Mass
|
|
Washington, D.C. (G)
|
|
2009
|
|
|
559
|
|
|
|
28,150,000
|
|
|
|
138,600,000
|
|
|
|
-
|
|
|
|
1,953,014
|
|
|
|
28,150,000
|
|
|
|
140,553,014
|
|
|
|
168,703,014
|
|
|
|
(4,494,218
|
)
|
|
|
164,208,796
|
|
|
|
-
|
600 Washington
|
|
New York, NY (G)
|
|
2004
|
|
|
135
|
|
|
|
32,852,000
|
|
|
|
43,140,551
|
|
|
|
-
|
|
|
|
195,058
|
|
|
|
32,852,000
|
|
|
|
43,335,609
|
|
|
|
76,187,609
|
|
|
|
(9,485,348
|
)
|
|
|
66,702,261
|
|
|
|
-
|
70 Greene
|
|
Jersey City, NJ (G)
|
|
2010
|
|
|
480
|
|
|
|
28,170,659
|
|
|
|
239,232,094
|
|
|
|
-
|
|
|
|
103,450
|
|
|
|
28,170,659
|
|
|
|
239,335,544
|
|
|
|
267,506,203
|
|
|
|
(6,599,249
|
)
|
|
|
260,906,954
|
|
|
|
-
|
71 Broadway
|
|
New York, NY (G)
|
|
1997
|
|
|
238
|
|
|
|
22,611,600
|
|
|
|
77,492,171
|
|
|
|
-
|
|
|
|
2,960,860
|
|
|
|
22,611,600
|
|
|
|
80,453,031
|
|
|
|
103,064,631
|
|
|
|
(17,989,358
|
)
|
|
|
85,075,273
|
|
|
|
-
|
777 Sixth
|
|
New York, NY (G)
|
|
2002
|
|
|
294
|
|
|
|
65,352,706
|
|
|
|
65,747,294
|
|
|
|
-
|
|
|
|
282,143
|
|
|
|
65,352,706
|
|
|
|
66,029,437
|
|
|
|
131,382,143
|
|
|
|
(8,432,644
|
)
|
|
|
122,949,499
|
|
|
|
-
|
Abington Glen
|
|
Abington, MA
|
|
1968
|
|
|
90
|
|
|
|
553,105
|
|
|
|
3,697,396
|
|
|
|
-
|
|
|
|
2,359,072
|
|
|
|
553,105
|
|
|
|
6,056,468
|
|
|
|
6,609,573
|
|
|
|
(2,794,784
|
)
|
|
|
3,814,789
|
|
|
|
-
|
Acacia Creek
|
|
Scottsdale, AZ
|
|
1988-1994
|
|
|
304
|
|
|
|
3,663,473
|
|
|
|
21,172,386
|
|
|
|
-
|
|
|
|
2,814,423
|
|
|
|
3,663,473
|
|
|
|
23,986,809
|
|
|
|
27,650,282
|
|
|
|
(11,190,829
|
)
|
|
|
16,459,453
|
|
|
|
-
|
Arden Villas
|
|
Orlando, FL
|
|
1999
|
|
|
336
|
|
|
|
5,500,000
|
|
|
|
28,600,796
|
|
|
|
-
|
|
|
|
3,182,624
|
|
|
|
5,500,000
|
|
|
|
31,783,420
|
|
|
|
37,283,420
|
|
|
|
(8,171,582
|
)
|
|
|
29,111,838
|
|
|
|
-
|
Arlington at Perimeter Center
|
|
Atlanta, GA
|
|
1980
|
|
|
204
|
|
|
|
2,448,000
|
|
|
|
8,099,110
|
|
|
|
-
|
|
|
|
114,675
|
|
|
|
2,448,000
|
|
|
|
8,213,785
|
|
|
|
10,661,785
|
|
|
|
(1,300,791
|
)
|
|
|
9,360,994
|
|
|
|
-
|
Ashton, The
|
|
Corona Hills, CA
|
|
1986
|
|
|
492
|
|
|
|
2,594,264
|
|
|
|
33,042,398
|
|
|
|
-
|
|
|
|
5,966,954
|
|
|
|
2,594,264
|
|
|
|
39,009,352
|
|
|
|
41,603,616
|
|
|
|
(18,806,334
|
)
|
|
|
22,797,282
|
|
|
|
-
|
Audubon Village
|
|
Tampa, FL
|
|
1990
|
|
|
447
|
|
|
|
3,576,000
|
|
|
|
26,121,909
|
|
|
|
-
|
|
|
|
4,114,611
|
|
|
|
3,576,000
|
|
|
|
30,236,520
|
|
|
|
33,812,520
|
|
|
|
(13,268,213
|
)
|
|
|
20,544,307
|
|
|
|
-
|
Auvers Village
|
|
Orlando, FL
|
|
1991
|
|
|
480
|
|
|
|
3,808,823
|
|
|
|
29,322,243
|
|
|
|
-
|
|
|
|
6,216,049
|
|
|
|
3,808,823
|
|
|
|
35,538,292
|
|
|
|
39,347,115
|
|
|
|
(15,974,356
|
)
|
|
|
23,372,759
|
|
|
|
-
|
Avenue Royale
|
|
Jacksonville, FL
|
|
2001
|
|
|
200
|
|
|
|
5,000,000
|
|
|
|
17,785,388
|
|
|
|
-
|
|
|
|
917,456
|
|
|
|
5,000,000
|
|
|
|
18,702,844
|
|
|
|
23,702,844
|
|
|
|
(4,583,891
|
)
|
|
|
19,118,953
|
|
|
|
-
|
Avon Place, LLC
|
|
Avon, CT
|
|
1973
|
|
|
163
|
|
|
|
1,788,943
|
|
|
|
12,440,003
|
|
|
|
-
|
|
|
|
1,531,391
|
|
|
|
1,788,943
|
|
|
|
13,971,394
|
|
|
|
15,760,337
|
|
|
|
(4,990,349
|
)
|
|
|
10,769,988
|
|
|
|
-
|
Ball Park Lofts
|
|
Denver, CO (G)
|
|
2003
|
|
|
343
|
|
|
|
5,481,556
|
|
|
|
51,658,740
|
|
|
|
-
|
|
|
|
2,708,015
|
|
|
|
5,481,556
|
|
|
|
54,366,755
|
|
|
|
59,848,311
|
|
|
|
(12,931,360
|
)
|
|
|
46,916,951
|
|
|
|
-
|
Barrington Place
|
|
Oviedo, FL
|
|
1998
|
|
|
233
|
|
|
|
6,990,000
|
|
|
|
15,740,825
|
|
|
|
-
|
|
|
|
2,533,678
|
|
|
|
6,990,000
|
|
|
|
18,274,503
|
|
|
|
25,264,503
|
|
|
|
(6,000,104
|
)
|
|
|
19,264,399
|
|
|
|
-
|
Bay Hill
|
|
Long Beach, CA
|
|
2002
|
|
|
160
|
|
|
|
7,600,000
|
|
|
|
27,437,239
|
|
|
|
-
|
|
|
|
740,325
|
|
|
|
7,600,000
|
|
|
|
28,177,564
|
|
|
|
35,777,564
|
|
|
|
(7,029,980
|
)
|
|
|
28,747,584
|
|
|
|
-
|
Bella Terra I
|
|
Mukilteo, WA (G)
|
|
2002
|
|
|
235
|
|
|
|
5,686,861
|
|
|
|
26,070,540
|
|
|
|
-
|
|
|
|
667,419
|
|
|
|
5,686,861
|
|
|
|
26,737,959
|
|
|
|
32,424,820
|
|
|
|
(7,277,028
|
)
|
|
|
25,147,792
|
|
|
|
-
|
Bella Vista
|
|
Phoenix, AZ
|
|
1995
|
|
|
248
|
|
|
|
2,978,879
|
|
|
|
20,641,333
|
|
|
|
-
|
|
|
|
3,393,449
|
|
|
|
2,978,879
|
|
|
|
24,034,782
|
|
|
|
27,013,661
|
|
|
|
(11,641,771
|
)
|
|
|
15,371,890
|
|
|
|
-
|
Bella Vista I, II, III Combined
|
|
Woodland Hills, CA
|
|
2003-2007
|
|
|
579
|
|
|
|
31,682,754
|
|
|
|
121,095,785
|
|
|
|
-
|
|
|
|
1,390,256
|
|
|
|
31,682,754
|
|
|
|
122,486,041
|
|
|
|
154,168,795
|
|
|
|
(23,933,139
|
)
|
|
|
130,235,656
|
|
|
|
-
|
Belle Arts Condominium Homes, LLC
|
|
Bellevue, WA
|
|
2000
|
|
|
1
|
|
|
|
63,158
|
|
|
|
248,929
|
|
|
|
-
|
|
|
|
(5,320
|
)
|
|
|
63,158
|
|
|
|
243,609
|
|
|
|
306,767
|
|
|
|
-
|
|
|
|
306,767
|
|
|
|
-
|
Beneva Place
|
|
Sarasota, FL
|
|
1986
|
|
|
192
|
|
|
|
1,344,000
|
|
|
|
9,665,447
|
|
|
|
-
|
|
|
|
1,728,604
|
|
|
|
1,344,000
|
|
|
|
11,394,051
|
|
|
|
12,738,051
|
|
|
|
(5,284,608
|
)
|
|
|
7,453,443
|
|
|
|
-
|
Berkeley Land
|
|
Berkeley, CA
|
|
(F)
|
|
|
-
|
|
|
|
13,908,910
|
|
|
|
801,101
|
|
|
|
-
|
|
|
|
-
|
|
|
|
13,908,910
|
|
|
|
801,101
|
|
|
|
14,710,011
|
|
|
|
-
|
|
|
|
14,710,011
|
|
|
|
-
|
Bermuda Cove
|
|
Jacksonville, FL
|
|
1989
|
|
|
350
|
|
|
|
1,503,000
|
|
|
|
19,561,896
|
|
|
|
-
|
|
|
|
4,556,127
|
|
|
|
1,503,000
|
|
|
|
24,118,023
|
|
|
|
25,621,023
|
|
|
|
(11,324,915
|
)
|
|
|
14,296,108
|
|
|
|
-
|
Bishop Park
|
|
Winter Park, FL
|
|
1991
|
|
|
324
|
|
|
|
2,592,000
|
|
|
|
17,990,436
|
|
|
|
-
|
|
|
|
3,646,274
|
|
|
|
2,592,000
|
|
|
|
21,636,710
|
|
|
|
24,228,710
|
|
|
|
(10,340,427
|
)
|
|
|
13,888,283
|
|
|
|
-
|
Bradford Apartments
|
|
Newington, CT
|
|
1964
|
|
|
64
|
|
|
|
401,091
|
|
|
|
2,681,210
|
|
|
|
-
|
|
|
|
579,531
|
|
|
|
401,091
|
|
|
|
3,260,741
|
|
|
|
3,661,832
|
|
|
|
(1,301,744
|
)
|
|
|
2,360,088
|
|
|
|
-
|
Briar Knoll Apts
|
|
Vernon, CT
|
|
1986
|
|
|
150
|
|
|
|
928,972
|
|
|
|
6,209,988
|
|
|
|
-
|
|
|
|
1,274,495
|
|
|
|
928,972
|
|
|
|
7,484,483
|
|
|
|
8,413,455
|
|
|
|
(3,030,004
|
)
|
|
|
5,383,451
|
|
|
|
-
|
Bridford Lakes II
|
|
Greensboro, NC
|
|
(F)
|
|
|
-
|
|
|
|
1,100,564
|
|
|
|
792,509
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,100,564
|
|
|
|
792,509
|
|
|
|
1,893,073
|
|
|
|
-
|
|
|
|
1,893,073
|
|
|
|
-
|
Bridgewater at Wells Crossing
|
|
Orange Park, FL
|
|
1986
|
|
|
288
|
|
|
|
2,160,000
|
|
|
|
13,347,549
|
|
|
|
-
|
|
|
|
2,010,434
|
|
|
|
2,160,000
|
|
|
|
15,357,983
|
|
|
|
17,517,983
|
|
|
|
(6,560,719
|
)
|
|
|
10,957,264
|
|
|
|
-
|
Brookside (MD)
|
|
Frederick, MD
|
|
1993
|
|
|
228
|
|
|
|
2,736,000
|
|
|
|
7,934,069
|
|
|
|
-
|
|
|
|
2,157,009
|
|
|
|
2,736,000
|
|
|
|
10,091,078
|
|
|
|
12,827,078
|
|
|
|
(4,847,243
|
)
|
|
|
7,979,835
|
|
|
|
-
|
Brookside II (MD)
|
|
Frederick, MD
|
|
1979
|
|
|
204
|
|
|
|
2,450,800
|
|
|
|
6,913,202
|
|
|
|
-
|
|
|
|
2,622,214
|
|
|
|
2,450,800
|
|
|
|
9,535,416
|
|
|
|
11,986,216
|
|
|
|
(4,965,160
|
)
|
|
|
7,021,056
|
|
|
|
-
|
Camellero
|
|
Scottsdale, AZ
|
|
1979
|
|
|
348
|
|
|
|
1,924,900
|
|
|
|
17,324,593
|
|
|
|
-
|
|
|
|
5,445,971
|
|
|
|
1,924,900
|
|
|
|
22,770,564
|
|
|
|
24,695,464
|
|
|
|
(13,879,083
|
)
|
|
|
10,816,381
|
|
|
|
-
|
Carlyle Mill
|
|
Alexandria, VA
|
|
2002
|
|
|
317
|
|
|
|
10,000,000
|
|
|
|
51,367,913
|
|
|
|
-
|
|
|
|
3,585,927
|
|
|
|
10,000,000
|
|
|
|
54,953,840
|
|
|
|
64,953,840
|
|
|
|
(15,384,028
|
)
|
|
|
49,569,812
|
|
|
|
-
|
Center Pointe
|
|
Beaverton, OR
|
|
1996
|
|
|
264
|
|
|
|
3,421,535
|
|
|
|
15,708,853
|
|
|
|
-
|
|
|
|
2,605,275
|
|
|
|
3,421,535
|
|
|
|
18,314,128
|
|
|
|
21,735,663
|
|
|
|
(7,023,656
|
)
|
|
|
14,712,007
|
|
|
|
-
|
Centre Club
|
|
Ontario, CA
|
|
1994
|
|
|
312
|
|
|
|
5,616,000
|
|
|
|
23,485,891
|
|
|
|
-
|
|
|
|
2,576,818
|
|
|
|
5,616,000
|
|
|
|
26,062,709
|
|
|
|
31,678,709
|
|
|
|
(9,857,007
|
)
|
|
|
21,821,702
|
|
|
|
-
|
Centre Club II
|
|
Ontario, CA
|
|
2002
|
|
|
100
|
|
|
|
1,820,000
|
|
|
|
9,528,898
|
|
|
|
-
|
|
|
|
539,590
|
|
|
|
1,820,000
|
|
|
|
10,068,488
|
|
|
|
11,888,488
|
|
|
|
(3,186,170
|
)
|
|
|
8,702,318
|
|
|
|
-
|
Chandler Court
|
|
Chandler, AZ
|
|
1987
|
|
|
316
|
|
|
|
1,353,100
|
|
|
|
12,175,173
|
|
|
|
-
|
|
|
|
4,308,670
|
|
|
|
1,353,100
|
|
|
|
16,483,843
|
|
|
|
17,836,943
|
|
|
|
(9,303,425
|
)
|
|
|
8,533,518
|
|
|
|
-
|
Chandlers Bay
|
|
Kent, WA
|
|
1989
|
|
|
293
|
|
|
|
3,700,000
|
|
|
|
18,962,585
|
|
|
|
-
|
|
|
|
69,473
|
|
|
|
3,700,000
|
|
|
|
19,032,058
|
|
|
|
22,732,058
|
|
|
|
(2,175,442
|
)
|
|
|
20,556,616
|
|
|
|
-
|
Chatelaine Park
|
|
Duluth, GA
|
|
1995
|
|
|
303
|
|
|
|
1,818,000
|
|
|
|
24,489,671
|
|
|
|
-
|
|
|
|
1,974,089
|
|
|
|
1,818,000
|
|
|
|
26,463,760
|
|
|
|
28,281,760
|
|
|
|
(11,447,801
|
)
|
|
|
16,833,959
|
|
|
|
-
|
Chesapeake Glen Apts (fka Greentree I, II &
III)
|
|
Glen Burnie, MD
|
|
1973
|
|
|
796
|
|
|
|
8,993,411
|
|
|
|
27,301,052
|
|
|
|
-
|
|
|
|
20,936,090
|
|
|
|
8,993,411
|
|
|
|
48,237,142
|
|
|
|
57,230,553
|
|
|
|
(22,479,872
|
)
|
|
|
34,750,681
|
|
|
|
-
|
S-4
EQUITY
RESIDENTIAL
Schedule III - Real Estate and Accumulated
Depreciation
December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Initial Cost to
|
|
|
|
|
|
Acquisition
|
|
|
|
|
|
at Close of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
|
|
|
Company
|
|
|
|
|
|
(Improvements, net) (E)
|
|
|
|
|
|
Period 12/31/10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of
|
|
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Accumulated
|
|
|
Investment in Real
|
|
|
|
Apartment Name
|
|
Location
|
|
Construction
|
|
Units (H)
|
|
|
Land
|
|
|
Fixtures
|
|
|
Land
|
|
|
Fixtures
|
|
|
Land
|
|
|
Fixtures (A)
|
|
|
Total (B)
|
|
|
Depreciation (C)
|
|
|
Estate, Net at 12/31/10 (B)
|
|
|
Encumbrances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chestnut Hills
|
|
Puyallup, WA
|
|
1991
|
|
|
157
|
|
|
|
756,300
|
|
|
|
6,806,635
|
|
|
|
-
|
|
|
|
1,360,272
|
|
|
|
756,300
|
|
|
|
8,166,907
|
|
|
|
8,923,207
|
|
|
|
(4,244,605
|
)
|
|
|
4,678,602
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chickasaw Crossing
|
|
Orlando, FL
|
|
1986
|
|
|
292
|
|
|
|
2,044,000
|
|
|
|
12,366,832
|
|
|
|
-
|
|
|
|
1,786,050
|
|
|
|
2,044,000
|
|
|
|
14,152,882
|
|
|
|
16,196,882
|
|
|
|
(6,515,656
|
)
|
|
|
9,681,226
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chinatown Gateway
|
|
Los Angeles, CA
|
|
(F)
|
|
|
-
|
|
|
|
14,791,831
|
|
|
|
11,026,473
|
|
|
|
-
|
|
|
|
-
|
|
|
|
14,791,831
|
|
|
|
11,026,473
|
|
|
|
25,818,304
|
|
|
|
-
|
|
|
|
25,818,304
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Citrus Falls
|
|
Tampa, FL
|
|
2003
|
|
|
273
|
|
|
|
8,190,000
|
|
|
|
28,894,280
|
|
|
|
-
|
|
|
|
381,158
|
|
|
|
8,190,000
|
|
|
|
29,275,438
|
|
|
|
37,465,438
|
|
|
|
(5,939,746
|
)
|
|
|
31,525,692
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
City View (GA)
|
|
Atlanta, GA (G)
|
|
2003
|
|
|
202
|
|
|
|
6,440,800
|
|
|
|
19,993,460
|
|
|
|
-
|
|
|
|
1,256,448
|
|
|
|
6,440,800
|
|
|
|
21,249,908
|
|
|
|
27,690,708
|
|
|
|
(5,161,465
|
)
|
|
|
22,529,243
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clarys Crossing
|
|
Columbia, MD
|
|
1984
|
|
|
198
|
|
|
|
891,000
|
|
|
|
15,489,721
|
|
|
|
-
|
|
|
|
1,986,718
|
|
|
|
891,000
|
|
|
|
17,476,439
|
|
|
|
18,367,439
|
|
|
|
(8,016,743
|
)
|
|
|
10,350,696
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cleo, The
|
|
Los Angeles, CA
|
|
1989
|
|
|
92
|
|
|
|
6,615,467
|
|
|
|
14,829,335
|
|
|
|
-
|
|
|
|
3,663,066
|
|
|
|
6,615,467
|
|
|
|
18,492,401
|
|
|
|
25,107,868
|
|
|
|
(3,530,065
|
)
|
|
|
21,577,803
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Club at Tanasbourne
|
|
Hillsboro, OR
|
|
1990
|
|
|
352
|
|
|
|
3,521,300
|
|
|
|
16,257,934
|
|
|
|
-
|
|
|
|
3,046,161
|
|
|
|
3,521,300
|
|
|
|
19,304,095
|
|
|
|
22,825,395
|
|
|
|
(9,895,369
|
)
|
|
|
12,930,026
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Club at the Green
|
|
Beaverton, OR
|
|
1991
|
|
|
254
|
|
|
|
2,030,950
|
|
|
|
12,616,747
|
|
|
|
-
|
|
|
|
2,526,289
|
|
|
|
2,030,950
|
|
|
|
15,143,036
|
|
|
|
17,173,986
|
|
|
|
(7,815,215
|
)
|
|
|
9,358,771
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coconut Palm Club
|
|
Coconut Creek, GA
|
|
1992
|
|
|
300
|
|
|
|
3,001,700
|
|
|
|
17,678,928
|
|
|
|
-
|
|
|
|
2,525,679
|
|
|
|
3,001,700
|
|
|
|
20,204,607
|
|
|
|
23,206,307
|
|
|
|
(9,321,082
|
)
|
|
|
13,885,225
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cortona at Dana Park
|
|
Mesa, AZ
|
|
1986
|
|
|
222
|
|
|
|
2,028,939
|
|
|
|
12,466,128
|
|
|
|
-
|
|
|
|
2,413,182
|
|
|
|
2,028,939
|
|
|
|
14,879,310
|
|
|
|
16,908,249
|
|
|
|
(7,286,220
|
)
|
|
|
9,622,029
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Country Gables
|
|
Beaverton, OR
|
|
1991
|
|
|
288
|
|
|
|
1,580,500
|
|
|
|
14,215,444
|
|
|
|
-
|
|
|
|
3,412,313
|
|
|
|
1,580,500
|
|
|
|
17,627,757
|
|
|
|
19,208,257
|
|
|
|
(9,537,809
|
)
|
|
|
9,670,448
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cove at Boynton Beach I
|
|
Boynton Beach, FL
|
|
1996
|
|
|
252
|
|
|
|
12,600,000
|
|
|
|
31,469,651
|
|
|
|
-
|
|
|
|
2,779,931
|
|
|
|
12,600,000
|
|
|
|
34,249,582
|
|
|
|
46,849,582
|
|
|
|
(9,526,032
|
)
|
|
|
37,323,550
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cove at Boynton Beach II
|
|
Boynton Beach, FL
|
|
1998
|
|
|
296
|
|
|
|
14,800,000
|
|
|
|
37,874,719
|
|
|
|
-
|
|
|
|
-
|
|
|
|
14,800,000
|
|
|
|
37,874,719
|
|
|
|
52,674,719
|
|
|
|
(10,138,327
|
)
|
|
|
42,536,392
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cove at Fishers Landing
|
|
Vancouver, WA
|
|
1993
|
|
|
253
|
|
|
|
2,277,000
|
|
|
|
15,656,887
|
|
|
|
-
|
|
|
|
1,152,551
|
|
|
|
2,277,000
|
|
|
|
16,809,438
|
|
|
|
19,086,438
|
|
|
|
(5,710,162
|
)
|
|
|
13,376,276
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creekside Village
|
|
Mountlake Terrace, WA
|
|
1987
|
|
|
512
|
|
|
|
2,807,600
|
|
|
|
25,270,594
|
|
|
|
-
|
|
|
|
4,629,268
|
|
|
|
2,807,600
|
|
|
|
29,899,862
|
|
|
|
32,707,462
|
|
|
|
(17,364,294
|
)
|
|
|
15,343,168
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crosswinds
|
|
St. Petersburg, FL
|
|
1986
|
|
|
208
|
|
|
|
1,561,200
|
|
|
|
5,756,822
|
|
|
|
-
|
|
|
|
2,155,601
|
|
|
|
1,561,200
|
|
|
|
7,912,423
|
|
|
|
9,473,623
|
|
|
|
(4,270,769
|
)
|
|
|
5,202,854
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crown Court
|
|
Scottsdale, AZ
|
|
1987
|
|
|
416
|
|
|
|
3,156,600
|
|
|
|
28,414,599
|
|
|
|
-
|
|
|
|
7,093,468
|
|
|
|
3,156,600
|
|
|
|
35,508,067
|
|
|
|
38,664,667
|
|
|
|
(17,536,796
|
)
|
|
|
21,127,871
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crowntree Lakes
|
|
Orlando, FL
|
|
2008
|
|
|
352
|
|
|
|
12,009,630
|
|
|
|
44,407,977
|
|
|
|
-
|
|
|
|
128,840
|
|
|
|
12,009,630
|
|
|
|
44,536,817
|
|
|
|
56,546,447
|
|
|
|
(5,032,304
|
)
|
|
|
51,514,143
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cypress Lake at Waterford
|
|
Orlando, FL
|
|
2001
|
|
|
316
|
|
|
|
7,000,000
|
|
|
|
27,654,816
|
|
|
|
-
|
|
|
|
1,474,998
|
|
|
|
7,000,000
|
|
|
|
29,129,814
|
|
|
|
36,129,814
|
|
|
|
(7,889,517
|
)
|
|
|
28,240,297
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dartmouth Woods
|
|
Lakewood, CO
|
|
1990
|
|
|
201
|
|
|
|
1,609,800
|
|
|
|
10,832,754
|
|
|
|
-
|
|
|
|
1,964,282
|
|
|
|
1,609,800
|
|
|
|
12,797,036
|
|
|
|
14,406,836
|
|
|
|
(6,455,552
|
)
|
|
|
7,951,284
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dean Estates
|
|
Taunton, MA
|
|
1984
|
|
|
58
|
|
|
|
498,080
|
|
|
|
3,329,560
|
|
|
|
-
|
|
|
|
622,827
|
|
|
|
498,080
|
|
|
|
3,952,387
|
|
|
|
4,450,467
|
|
|
|
(1,678,930
|
)
|
|
|
2,771,537
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deerwood (Corona)
|
|
Corona, CA
|
|
1992
|
|
|
316
|
|
|
|
4,742,200
|
|
|
|
20,272,892
|
|
|
|
-
|
|
|
|
3,818,931
|
|
|
|
4,742,200
|
|
|
|
24,091,823
|
|
|
|
28,834,023
|
|
|
|
(11,726,867
|
)
|
|
|
17,107,156
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defoor Village
|
|
Atlanta, GA
|
|
1997
|
|
|
156
|
|
|
|
2,966,400
|
|
|
|
10,570,210
|
|
|
|
-
|
|
|
|
1,990,444
|
|
|
|
2,966,400
|
|
|
|
12,560,654
|
|
|
|
15,527,054
|
|
|
|
(5,858,484
|
)
|
|
|
9,668,570
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Del Mar Ridge
|
|
San Diego, CA
|
|
1998
|
|
|
181
|
|
|
|
7,801,824
|
|
|
|
36,948,176
|
|
|
|
-
|
|
|
|
2,298,593
|
|
|
|
7,801,824
|
|
|
|
39,246,769
|
|
|
|
47,048,593
|
|
|
|
(3,116,754
|
)
|
|
|
43,931,839
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Desert Homes
|
|
Phoenix, AZ
|
|
1982
|
|
|
412
|
|
|
|
1,481,050
|
|
|
|
13,390,249
|
|
|
|
-
|
|
|
|
4,652,484
|
|
|
|
1,481,050
|
|
|
|
18,042,733
|
|
|
|
19,523,783
|
|
|
|
(10,220,322
|
)
|
|
|
9,303,461
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eagle Canyon
|
|
Chino Hills, CA
|
|
1985
|
|
|
252
|
|
|
|
1,808,900
|
|
|
|
16,274,361
|
|
|
|
-
|
|
|
|
4,994,045
|
|
|
|
1,808,900
|
|
|
|
21,268,406
|
|
|
|
23,077,306
|
|
|
|
(10,622,403
|
)
|
|
|
12,454,903
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ellipse at Government Center
|
|
Fairfax, VA
|
|
1989
|
|
|
404
|
|
|
|
19,433,000
|
|
|
|
56,816,266
|
|
|
|
-
|
|
|
|
2,245,450
|
|
|
|
19,433,000
|
|
|
|
59,061,716
|
|
|
|
78,494,716
|
|
|
|
(7,973,317
|
)
|
|
|
70,521,399
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerson Place
|
|
Boston, MA (G)
|
|
1962
|
|
|
444
|
|
|
|
14,855,000
|
|
|
|
57,566,636
|
|
|
|
-
|
|
|
|
15,120,573
|
|
|
|
14,855,000
|
|
|
|
72,687,209
|
|
|
|
87,542,209
|
|
|
|
(36,608,983
|
)
|
|
|
50,933,226
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Enclave at Lake Underhill
|
|
Orlando, FL
|
|
1989
|
|
|
312
|
|
|
|
9,359,750
|
|
|
|
29,539,650
|
|
|
|
-
|
|
|
|
1,690,403
|
|
|
|
9,359,750
|
|
|
|
31,230,053
|
|
|
|
40,589,803
|
|
|
|
(7,327,341
|
)
|
|
|
33,262,462
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Enclave at Waterways
|
|
Deerfield Beach, FL
|
|
1998
|
|
|
300
|
|
|
|
15,000,000
|
|
|
|
33,194,576
|
|
|
|
-
|
|
|
|
843,037
|
|
|
|
15,000,000
|
|
|
|
34,037,613
|
|
|
|
49,037,613
|
|
|
|
(8,268,775
|
)
|
|
|
40,768,838
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Enclave at Winston Park
|
|
Coconut Creek, FL
|
|
1995
|
|
|
278
|
|
|
|
5,560,000
|
|
|
|
19,939,324
|
|
|
|
-
|
|
|
|
2,101,199
|
|
|
|
5,560,000
|
|
|
|
22,040,523
|
|
|
|
27,600,523
|
|
|
|
(7,511,989
|
)
|
|
|
20,088,534
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Enclave, The
|
|
Tempe, AZ
|
|
1994
|
|
|
204
|
|
|
|
1,500,192
|
|
|
|
19,281,399
|
|
|
|
-
|
|
|
|
1,333,483
|
|
|
|
1,500,192
|
|
|
|
20,614,882
|
|
|
|
22,115,074
|
|
|
|
(9,498,305
|
)
|
|
|
12,616,769
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estates at Phipps
|
|
Atlanta, GA
|
|
1996
|
|
|
234
|
|
|
|
9,360,000
|
|
|
|
29,705,236
|
|
|
|
-
|
|
|
|
3,780,696
|
|
|
|
9,360,000
|
|
|
|
33,485,932
|
|
|
|
42,845,932
|
|
|
|
(9,625,684
|
)
|
|
|
33,220,248
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estates at Wellington Green
|
|
Wellington, FL
|
|
2003
|
|
|
400
|
|
|
|
20,000,000
|
|
|
|
64,790,850
|
|
|
|
-
|
|
|
|
1,719,926
|
|
|
|
20,000,000
|
|
|
|
66,510,776
|
|
|
|
86,510,776
|
|
|
|
(15,486,015
|
)
|
|
|
71,024,761
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fairland Gardens
|
|
Silver Spring, MD
|
|
1981
|
|
|
400
|
|
|
|
6,000,000
|
|
|
|
19,972,183
|
|
|
|
-
|
|
|
|
5,994,235
|
|
|
|
6,000,000
|
|
|
|
25,966,418
|
|
|
|
31,966,418
|
|
|
|
(12,839,143
|
)
|
|
|
19,127,275
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Four Winds
|
|
Fall River, MA
|
|
1987
|
|
|
168
|
|
|
|
1,370,843
|
|
|
|
9,163,804
|
|
|
|
-
|
|
|
|
1,961,290
|
|
|
|
1,370,843
|
|
|
|
11,125,094
|
|
|
|
12,495,937
|
|
|
|
(4,317,329
|
)
|
|
|
8,178,608
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fox Hill Apartments
|
|
Enfield, CT
|
|
1974
|
|
|
168
|
|
|
|
1,129,018
|
|
|
|
7,547,256
|
|
|
|
-
|
|
|
|
1,410,030
|
|
|
|
1,129,018
|
|
|
|
8,957,286
|
|
|
|
10,086,304
|
|
|
|
(3,473,400
|
)
|
|
|
6,612,904
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fox Run (WA)
|
|
Federal Way, WA
|
|
1988
|
|
|
144
|
|
|
|
626,637
|
|
|
|
5,765,018
|
|
|
|
-
|
|
|
|
1,644,476
|
|
|
|
626,637
|
|
|
|
7,409,494
|
|
|
|
8,036,131
|
|
|
|
(4,492,269
|
)
|
|
|
3,543,862
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fox Run II (WA)
|
|
Federal Way, WA
|
|
1988
|
|
|
18
|
|
|
|
80,000
|
|
|
|
1,286,139
|
|
|
|
-
|
|
|
|
53,086
|
|
|
|
80,000
|
|
|
|
1,339,225
|
|
|
|
1,419,225
|
|
|
|
(389,957
|
)
|
|
|
1,029,268
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gables Grand Plaza
|
|
Coral Gables, FL (G)
|
|
1998
|
|
|
195
|
|
|
|
-
|
|
|
|
44,601,000
|
|
|
|
-
|
|
|
|
3,174,122
|
|
|
|
-
|
|
|
|
47,775,122
|
|
|
|
47,775,122
|
|
|
|
(12,598,590
|
)
|
|
|
35,176,532
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gallery, The
|
|
Hermosa Beach, CA
|
|
1971
|
|
|
168
|
|
|
|
18,144,000
|
|
|
|
46,567,941
|
|
|
|
-
|
|
|
|
1,719,605
|
|
|
|
18,144,000
|
|
|
|
48,287,546
|
|
|
|
66,431,546
|
|
|
|
(9,535,678
|
)
|
|
|
56,895,868
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gatehouse at Pine Lake
|
|
Pembroke Pines, FL
|
|
1990
|
|
|
296
|
|
|
|
1,896,600
|
|
|
|
17,070,795
|
|
|
|
-
|
|
|
|
3,174,037
|
|
|
|
1,896,600
|
|
|
|
20,244,832
|
|
|
|
22,141,432
|
|
|
|
(10,411,240
|
)
|
|
|
11,730,192
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gatehouse on the Green
|
|
Plantation, FL
|
|
1990
|
|
|
312
|
|
|
|
2,228,200
|
|
|
|
20,056,270
|
|
|
|
-
|
|
|
|
6,485,962
|
|
|
|
2,228,200
|
|
|
|
26,542,232
|
|
|
|
28,770,432
|
|
|
|
(12,580,475
|
)
|
|
|
16,189,957
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gates of Redmond
|
|
Redmond, WA
|
|
1979
|
|
|
180
|
|
|
|
2,306,100
|
|
|
|
12,064,015
|
|
|
|
-
|
|
|
|
4,624,741
|
|
|
|
2,306,100
|
|
|
|
16,688,756
|
|
|
|
18,994,856
|
|
|
|
(7,467,775
|
)
|
|
|
11,527,081
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gatewood
|
|
Pleasanton, CA
|
|
1985
|
|
|
200
|
|
|
|
6,796,511
|
|
|
|
20,249,392
|
|
|
|
-
|
|
|
|
3,558,873
|
|
|
|
6,796,511
|
|
|
|
23,808,265
|
|
|
|
30,604,776
|
|
|
|
(6,922,485
|
)
|
|
|
23,682,291
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Governors Green
|
|
Bowie, MD
|
|
1999
|
|
|
478
|
|
|
|
19,845,000
|
|
|
|
73,335,916
|
|
|
|
-
|
|
|
|
513,833
|
|
|
|
19,845,000
|
|
|
|
73,849,749
|
|
|
|
93,694,749
|
|
|
|
(10,600,450
|
)
|
|
|
83,094,299
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greenfield Village
|
|
Rocky Hill , CT
|
|
1965
|
|
|
151
|
|
|
|
911,534
|
|
|
|
6,093,418
|
|
|
|
-
|
|
|
|
623,523
|
|
|
|
911,534
|
|
|
|
6,716,941
|
|
|
|
7,628,475
|
|
|
|
(2,669,219
|
)
|
|
|
4,959,256
|
|
|
|
-
|
S-5
EQUITY
RESIDENTIAL
Schedule III - Real Estate and Accumulated
Depreciation
December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Initial Cost to
|
|
|
|
|
|
Acquisition
|
|
|
|
|
|
at Close of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
|
|
|
Company
|
|
|
|
|
|
(Improvements, net) (E)
|
|
|
|
|
|
Period 12/31/10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of
|
|
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Accumulated
|
|
|
Investment in Real
|
|
|
|
Apartment Name
|
|
Location
|
|
Construction
|
|
Units (H)
|
|
|
Land
|
|
|
Fixtures
|
|
|
Land
|
|
|
Fixtures
|
|
|
Land
|
|
|
Fixtures (A)
|
|
|
Total (B)
|
|
|
Depreciation (C)
|
|
|
Estate, Net at 12/31/10 (B)
|
|
|
Encumbrances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greenhouse Roswell
|
|
Roswell, GA
|
|
1985
|
|
|
236
|
|
|
|
1,220,000
|
|
|
|
10,974,727
|
|
|
|
-
|
|
|
|
2,862,866
|
|
|
|
1,220,000
|
|
|
|
13,837,593
|
|
|
|
15,057,593
|
|
|
|
(8,334,268
|
)
|
|
|
6,723,325
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hamilton Villas
|
|
Beverly Hills, CA
|
|
1990
|
|
|
35
|
|
|
|
7,772,000
|
|
|
|
16,864,269
|
|
|
|
-
|
|
|
|
1,197,789
|
|
|
|
7,772,000
|
|
|
|
18,062,058
|
|
|
|
25,834,058
|
|
|
|
(2,088,921
|
)
|
|
|
23,745,137
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hammocks Place
|
|
Miami, FL
|
|
1986
|
|
|
296
|
|
|
|
319,180
|
|
|
|
12,513,467
|
|
|
|
-
|
|
|
|
3,361,988
|
|
|
|
319,180
|
|
|
|
15,875,455
|
|
|
|
16,194,635
|
|
|
|
(9,682,288
|
)
|
|
|
6,512,347
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hampshire Place
|
|
Los Angeles, CA
|
|
1989
|
|
|
259
|
|
|
|
10,806,000
|
|
|
|
30,335,330
|
|
|
|
-
|
|
|
|
1,855,750
|
|
|
|
10,806,000
|
|
|
|
32,191,080
|
|
|
|
42,997,080
|
|
|
|
(8,142,603
|
)
|
|
|
34,854,477
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hamptons
|
|
Puyallup, WA
|
|
1991
|
|
|
230
|
|
|
|
1,119,200
|
|
|
|
10,075,844
|
|
|
|
-
|
|
|
|
1,812,434
|
|
|
|
1,119,200
|
|
|
|
11,888,278
|
|
|
|
13,007,478
|
|
|
|
(6,014,780
|
)
|
|
|
6,992,698
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heritage Ridge
|
|
Lynwood, WA
|
|
1999
|
|
|
197
|
|
|
|
6,895,000
|
|
|
|
18,983,597
|
|
|
|
-
|
|
|
|
492,899
|
|
|
|
6,895,000
|
|
|
|
19,476,496
|
|
|
|
26,371,496
|
|
|
|
(5,168,705
|
)
|
|
|
21,202,791
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heritage, The
|
|
Phoenix, AZ
|
|
1995
|
|
|
204
|
|
|
|
1,209,705
|
|
|
|
13,136,903
|
|
|
|
-
|
|
|
|
1,360,019
|
|
|
|
1,209,705
|
|
|
|
14,496,922
|
|
|
|
15,706,627
|
|
|
|
(6,803,317
|
)
|
|
|
8,903,310
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heron Pointe
|
|
Boynton Beach, FL
|
|
1989
|
|
|
192
|
|
|
|
1,546,700
|
|
|
|
7,774,676
|
|
|
|
-
|
|
|
|
1,923,892
|
|
|
|
1,546,700
|
|
|
|
9,698,568
|
|
|
|
11,245,268
|
|
|
|
(5,039,618
|
)
|
|
|
6,205,650
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High Meadow
|
|
Ellington, CT
|
|
1975
|
|
|
100
|
|
|
|
583,679
|
|
|
|
3,901,774
|
|
|
|
-
|
|
|
|
756,263
|
|
|
|
583,679
|
|
|
|
4,658,037
|
|
|
|
5,241,716
|
|
|
|
(1,793,920
|
)
|
|
|
3,447,796
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Highland Glen
|
|
Westwood, MA
|
|
1979
|
|
|
180
|
|
|
|
2,229,095
|
|
|
|
16,828,153
|
|
|
|
-
|
|
|
|
2,239,543
|
|
|
|
2,229,095
|
|
|
|
19,067,696
|
|
|
|
21,296,791
|
|
|
|
(7,067,157
|
)
|
|
|
14,229,634
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Highland Glen II
|
|
Westwood, MA
|
|
2007
|
|
|
102
|
|
|
|
-
|
|
|
|
19,875,857
|
|
|
|
-
|
|
|
|
80,545
|
|
|
|
-
|
|
|
|
19,956,402
|
|
|
|
19,956,402
|
|
|
|
(2,819,615
|
)
|
|
|
17,136,787
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Highlands at South Plainfield
|
|
South Plainfield, NJ
|
|
2000
|
|
|
252
|
|
|
|
10,080,000
|
|
|
|
37,526,912
|
|
|
|
-
|
|
|
|
733,896
|
|
|
|
10,080,000
|
|
|
|
38,260,808
|
|
|
|
48,340,808
|
|
|
|
(7,925,678
|
)
|
|
|
40,415,130
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Highlands, The
|
|
Scottsdale, AZ
|
|
1990
|
|
|
272
|
|
|
|
11,823,840
|
|
|
|
31,990,970
|
|
|
|
-
|
|
|
|
2,805,757
|
|
|
|
11,823,840
|
|
|
|
34,796,727
|
|
|
|
46,620,567
|
|
|
|
(7,688,227
|
)
|
|
|
38,932,340
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson Crossing
|
|
New York, NY (G)
|
|
2003
|
|
|
259
|
|
|
|
23,420,000
|
|
|
|
70,086,976
|
|
|
|
-
|
|
|
|
748,402
|
|
|
|
23,420,000
|
|
|
|
70,835,378
|
|
|
|
94,255,378
|
|
|
|
(16,184,367
|
)
|
|
|
78,071,011
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson Pointe
|
|
Jersey City, NJ
|
|
2003
|
|
|
182
|
|
|
|
5,148,500
|
|
|
|
41,149,117
|
|
|
|
-
|
|
|
|
1,048,724
|
|
|
|
5,148,500
|
|
|
|
42,197,841
|
|
|
|
47,346,341
|
|
|
|
(10,223,470
|
)
|
|
|
37,122,871
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hunt Club II
|
|
Charlotte, NC
|
|
(F)
|
|
|
-
|
|
|
|
100,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
100,000
|
|
|
|
-
|
|
|
|
100,000
|
|
|
|
-
|
|
|
|
100,000
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Huntington Park
|
|
Everett, WA
|
|
1991
|
|
|
381
|
|
|
|
1,597,500
|
|
|
|
14,367,864
|
|
|
|
-
|
|
|
|
3,620,694
|
|
|
|
1,597,500
|
|
|
|
17,988,558
|
|
|
|
19,586,058
|
|
|
|
(10,893,191
|
)
|
|
|
8,692,867
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indian Bend
|
|
Scottsdale, AZ
|
|
1973
|
|
|
278
|
|
|
|
1,075,700
|
|
|
|
9,800,330
|
|
|
|
-
|
|
|
|
3,042,609
|
|
|
|
1,075,700
|
|
|
|
12,842,939
|
|
|
|
13,918,639
|
|
|
|
(8,082,539
|
)
|
|
|
5,836,100
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Iron Horse Park
|
|
Pleasant Hill, CA
|
|
1973
|
|
|
252
|
|
|
|
15,000,000
|
|
|
|
24,335,549
|
|
|
|
-
|
|
|
|
7,755,418
|
|
|
|
15,000,000
|
|
|
|
32,090,967
|
|
|
|
47,090,967
|
|
|
|
(8,103,335
|
)
|
|
|
38,987,632
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Isle at Arrowhead Ranch
|
|
Glendale, AZ
|
|
1996
|
|
|
256
|
|
|
|
1,650,237
|
|
|
|
19,593,123
|
|
|
|
-
|
|
|
|
1,660,272
|
|
|
|
1,650,237
|
|
|
|
21,253,395
|
|
|
|
22,903,632
|
|
|
|
(9,860,515
|
)
|
|
|
13,043,117
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kempton Downs
|
|
Gresham, OR
|
|
1990
|
|
|
278
|
|
|
|
1,217,349
|
|
|
|
10,943,372
|
|
|
|
-
|
|
|
|
2,838,147
|
|
|
|
1,217,349
|
|
|
|
13,781,519
|
|
|
|
14,998,868
|
|
|
|
(7,994,662
|
)
|
|
|
7,004,206
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kenwood Mews
|
|
Burbank, CA
|
|
1991
|
|
|
141
|
|
|
|
14,100,000
|
|
|
|
24,662,883
|
|
|
|
-
|
|
|
|
1,627,860
|
|
|
|
14,100,000
|
|
|
|
26,290,743
|
|
|
|
40,390,743
|
|
|
|
(5,165,397
|
)
|
|
|
35,225,346
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Isle at Windermere
|
|
Ocoee, FL
|
|
2000
|
|
|
282
|
|
|
|
8,460,000
|
|
|
|
31,761,470
|
|
|
|
-
|
|
|
|
1,197,975
|
|
|
|
8,460,000
|
|
|
|
32,959,445
|
|
|
|
41,419,445
|
|
|
|
(7,409,728
|
)
|
|
|
34,009,717
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Isle at Windermere II
|
|
Ocoee, FL
|
|
2008
|
|
|
165
|
|
|
|
3,306,286
|
|
|
|
24,519,643
|
|
|
|
-
|
|
|
|
21,547
|
|
|
|
3,306,286
|
|
|
|
24,541,190
|
|
|
|
27,847,476
|
|
|
|
(2,038,084
|
)
|
|
|
25,809,392
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kings Colony (FL)
|
|
Miami, FL
|
|
1986
|
|
|
480
|
|
|
|
19,200,000
|
|
|
|
48,379,586
|
|
|
|
-
|
|
|
|
2,692,770
|
|
|
|
19,200,000
|
|
|
|
51,072,356
|
|
|
|
70,272,356
|
|
|
|
(12,387,179
|
)
|
|
|
57,885,177
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La Mirage
|
|
San Diego, CA
|
|
1988/1992
|
|
|
1,070
|
|
|
|
28,895,200
|
|
|
|
95,567,943
|
|
|
|
-
|
|
|
|
13,968,700
|
|
|
|
28,895,200
|
|
|
|
109,536,643
|
|
|
|
138,431,843
|
|
|
|
(51,916,782
|
)
|
|
|
86,515,061
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La Mirage IV
|
|
San Diego, CA
|
|
2001
|
|
|
340
|
|
|
|
6,000,000
|
|
|
|
47,449,353
|
|
|
|
-
|
|
|
|
2,944,380
|
|
|
|
6,000,000
|
|
|
|
50,393,733
|
|
|
|
56,393,733
|
|
|
|
(16,239,415
|
)
|
|
|
40,154,318
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Laguna Clara
|
|
Santa Clara, CA
|
|
1972
|
|
|
264
|
|
|
|
13,642,420
|
|
|
|
29,707,475
|
|
|
|
-
|
|
|
|
3,329,323
|
|
|
|
13,642,420
|
|
|
|
33,036,798
|
|
|
|
46,679,218
|
|
|
|
(9,100,501
|
)
|
|
|
37,578,717
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake Buena Vista Combined
|
|
Orlando, FL
|
|
2000/2002
|
|
|
672
|
|
|
|
23,520,000
|
|
|
|
75,068,206
|
|
|
|
-
|
|
|
|
3,594,116
|
|
|
|
23,520,000
|
|
|
|
78,662,322
|
|
|
|
102,182,322
|
|
|
|
(17,301,402
|
)
|
|
|
84,880,920
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Landings at Pembroke Lakes
|
|
Pembroke Pines, FL
|
|
1989
|
|
|
358
|
|
|
|
17,900,000
|
|
|
|
24,460,989
|
|
|
|
-
|
|
|
|
4,881,752
|
|
|
|
17,900,000
|
|
|
|
29,342,741
|
|
|
|
47,242,741
|
|
|
|
(7,519,945
|
)
|
|
|
39,722,796
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Landings at Port Imperial
|
|
W. New York, NJ
|
|
1999
|
|
|
276
|
|
|
|
27,246,045
|
|
|
|
37,741,050
|
|
|
|
-
|
|
|
|
6,567,661
|
|
|
|
27,246,045
|
|
|
|
44,308,711
|
|
|
|
71,554,756
|
|
|
|
(15,348,539
|
)
|
|
|
56,206,217
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Las Colinas at Black Canyon
|
|
Phoenix, AZ
|
|
2008
|
|
|
304
|
|
|
|
9,000,000
|
|
|
|
35,917,811
|
|
|
|
-
|
|
|
|
115,519
|
|
|
|
9,000,000
|
|
|
|
36,033,330
|
|
|
|
45,033,330
|
|
|
|
(4,435,319
|
)
|
|
|
40,598,011
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legacy at Highlands Ranch
|
|
Highlands Ranch, CO
|
|
1999
|
|
|
422
|
|
|
|
6,330,000
|
|
|
|
37,557,013
|
|
|
|
-
|
|
|
|
1,466,728
|
|
|
|
6,330,000
|
|
|
|
39,023,741
|
|
|
|
45,353,741
|
|
|
|
(9,805,338
|
)
|
|
|
35,548,403
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legacy Park Central
|
|
Concord, CA
|
|
2003
|
|
|
259
|
|
|
|
6,469,230
|
|
|
|
46,745,854
|
|
|
|
-
|
|
|
|
295,479
|
|
|
|
6,469,230
|
|
|
|
47,041,333
|
|
|
|
53,510,563
|
|
|
|
(10,789,289
|
)
|
|
|
42,721,274
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lexington Farm
|
|
Alpharetta, GA
|
|
1995
|
|
|
352
|
|
|
|
3,521,900
|
|
|
|
22,888,305
|
|
|
|
-
|
|
|
|
2,476,212
|
|
|
|
3,521,900
|
|
|
|
25,364,517
|
|
|
|
28,886,417
|
|
|
|
(11,200,145
|
)
|
|
|
17,686,272
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lexington Park
|
|
Orlando, FL
|
|
1988
|
|
|
252
|
|
|
|
2,016,000
|
|
|
|
12,346,726
|
|
|
|
-
|
|
|
|
2,450,467
|
|
|
|
2,016,000
|
|
|
|
14,797,193
|
|
|
|
16,813,193
|
|
|
|
(7,062,512
|
)
|
|
|
9,750,681
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Little Cottonwoods
|
|
Tempe, AZ
|
|
1984
|
|
|
379
|
|
|
|
3,050,133
|
|
|
|
26,991,689
|
|
|
|
-
|
|
|
|
3,737,391
|
|
|
|
3,050,133
|
|
|
|
30,729,080
|
|
|
|
33,779,213
|
|
|
|
(14,499,829
|
)
|
|
|
19,279,384
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Longacre House
|
|
New York, NY (G)
|
|
2000
|
|
|
293
|
|
|
|
73,170,045
|
|
|
|
53,962,510
|
|
|
|
-
|
|
|
|
125,953
|
|
|
|
73,170,045
|
|
|
|
54,088,463
|
|
|
|
127,258,508
|
|
|
|
(7,505,448
|
)
|
|
|
119,753,060
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Longfellow Place
|
|
Boston, MA (G)
|
|
1975
|
|
|
710
|
|
|
|
53,164,160
|
|
|
|
183,940,619
|
|
|
|
-
|
|
|
|
47,318,604
|
|
|
|
53,164,160
|
|
|
|
231,259,223
|
|
|
|
284,423,383
|
|
|
|
(97,449,615
|
)
|
|
|
186,973,768
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Longwood
|
|
Decatur, GA
|
|
1992
|
|
|
268
|
|
|
|
1,454,048
|
|
|
|
13,087,393
|
|
|
|
-
|
|
|
|
2,002,602
|
|
|
|
1,454,048
|
|
|
|
15,089,995
|
|
|
|
16,544,043
|
|
|
|
(8,825,354
|
)
|
|
|
7,718,689
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Madison, The
|
|
Alexandria, VA
|
|
(F)
|
|
|
-
|
|
|
|
15,261,108
|
|
|
|
1,080,330
|
|
|
|
-
|
|
|
|
-
|
|
|
|
15,261,108
|
|
|
|
1,080,330
|
|
|
|
16,341,438
|
|
|
|
-
|
|
|
|
16,341,438
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marbrisa
|
|
Tampa, FL
|
|
1984
|
|
|
224
|
|
|
|
2,240,000
|
|
|
|
7,183,561
|
|
|
|
-
|
|
|
|
79,738
|
|
|
|
2,240,000
|
|
|
|
7,263,299
|
|
|
|
9,503,299
|
|
|
|
(1,234,564
|
)
|
|
|
8,268,735
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mariners Wharf
|
|
Orange Park, FL
|
|
1989
|
|
|
272
|
|
|
|
1,861,200
|
|
|
|
16,744,951
|
|
|
|
-
|
|
|
|
3,244,046
|
|
|
|
1,861,200
|
|
|
|
19,988,997
|
|
|
|
21,850,197
|
|
|
|
(9,702,938
|
)
|
|
|
12,147,259
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Street Landing
|
|
Seattle, WA
|
|
(F)
|
|
|
-
|
|
|
|
12,542,418
|
|
|
|
297,637
|
|
|
|
-
|
|
|
|
-
|
|
|
|
12,542,418
|
|
|
|
297,637
|
|
|
|
12,840,055
|
|
|
|
-
|
|
|
|
12,840,055
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marquessa
|
|
Corona Hills, CA
|
|
1992
|
|
|
336
|
|
|
|
6,888,500
|
|
|
|
21,604,584
|
|
|
|
-
|
|
|
|
2,726,408
|
|
|
|
6,888,500
|
|
|
|
24,330,992
|
|
|
|
31,219,492
|
|
|
|
(11,834,160
|
)
|
|
|
19,385,332
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Martha Lake
|
|
Lynnwood, WA
|
|
1991
|
|
|
155
|
|
|
|
821,200
|
|
|
|
7,405,070
|
|
|
|
-
|
|
|
|
1,985,277
|
|
|
|
821,200
|
|
|
|
9,390,347
|
|
|
|
10,211,547
|
|
|
|
(4,980,064
|
)
|
|
|
5,231,483
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Martine, The
|
|
Bellevue, WA
|
|
1984
|
|
|
67
|
|
|
|
3,200,000
|
|
|
|
9,616,264
|
|
|
|
-
|
|
|
|
2,642,670
|
|
|
|
3,200,000
|
|
|
|
12,258,934
|
|
|
|
15,458,934
|
|
|
|
(1,957,800
|
)
|
|
|
13,501,134
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merritt at Satellite Place
|
|
Duluth, GA
|
|
1999
|
|
|
424
|
|
|
|
3,400,000
|
|
|
|
30,115,674
|
|
|
|
-
|
|
|
|
2,440,228
|
|
|
|
3,400,000
|
|
|
|
32,555,902
|
|
|
|
35,955,902
|
|
|
|
(13,072,220
|
)
|
|
|
22,883,682
|
|
|
|
-
|
S-6
EQUITY
RESIDENTIAL
Schedule III - Real Estate and Accumulated
Depreciation
December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Initial Cost to
|
|
|
|
|
|
Acquisition
|
|
|
|
|
|
at Close of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
|
|
|
Company
|
|
|
|
|
|
(Improvements, net) (E)
|
|
|
|
|
|
Period 12/31/10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of
|
|
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Accumulated
|
|
|
Investment in Real
|
|
|
|
Apartment Name
|
|
Location
|
|
Construction
|
|
Units (H)
|
|
|
Land
|
|
|
Fixtures
|
|
|
Land
|
|
|
Fixtures
|
|
|
Land
|
|
|
Fixtures (A)
|
|
|
Total (B)
|
|
|
Depreciation (C)
|
|
|
Estate, Net at 12/31/10 (B)
|
|
|
Encumbrances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mill Pond
|
|
Millersville, MD
|
|
1984
|
|
|
240
|
|
|
|
2,880,000
|
|
|
|
8,468,014
|
|
|
|
-
|
|
|
|
2,718,776
|
|
|
|
2,880,000
|
|
|
|
11,186,790
|
|
|
|
14,066,790
|
|
|
|
(5,505,405
|
)
|
|
|
8,561,385
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mira Flores
|
|
Palm Beach Gardens, FL
|
|
1996
|
|
|
352
|
|
|
|
7,039,313
|
|
|
|
22,515,299
|
|
|
|
-
|
|
|
|
2,298,916
|
|
|
|
7,039,313
|
|
|
|
24,814,215
|
|
|
|
31,853,528
|
|
|
|
(8,485,263
|
)
|
|
|
23,368,265
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mission Bay
|
|
Orlando, FL
|
|
1991
|
|
|
304
|
|
|
|
2,432,000
|
|
|
|
21,623,560
|
|
|
|
-
|
|
|
|
2,717,235
|
|
|
|
2,432,000
|
|
|
|
24,340,795
|
|
|
|
26,772,795
|
|
|
|
(10,820,242
|
)
|
|
|
15,952,553
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mission Verde, LLC
|
|
San Jose, CA
|
|
1986
|
|
|
108
|
|
|
|
5,190,700
|
|
|
|
9,679,109
|
|
|
|
-
|
|
|
|
3,151,242
|
|
|
|
5,190,700
|
|
|
|
12,830,351
|
|
|
|
18,021,051
|
|
|
|
(5,623,277
|
)
|
|
|
12,397,774
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Morningside
|
|
Scottsdale, AZ
|
|
1989
|
|
|
160
|
|
|
|
670,470
|
|
|
|
12,607,976
|
|
|
|
-
|
|
|
|
1,697,299
|
|
|
|
670,470
|
|
|
|
14,305,275
|
|
|
|
14,975,745
|
|
|
|
(6,740,861
|
)
|
|
|
8,234,884
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mosaic at Largo Station
|
|
Hyattsville, MD
|
|
2008
|
|
|
242
|
|
|
|
4,120,800
|
|
|
|
42,477,297
|
|
|
|
-
|
|
|
|
237,451
|
|
|
|
4,120,800
|
|
|
|
42,714,748
|
|
|
|
46,835,548
|
|
|
|
(4,141,764
|
)
|
|
|
42,693,784
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mozaic at Union Station
|
|
Los Angeles, CA
|
|
2007
|
|
|
272
|
|
|
|
8,500,000
|
|
|
|
52,583,270
|
|
|
|
-
|
|
|
|
668,419
|
|
|
|
8,500,000
|
|
|
|
53,251,689
|
|
|
|
61,751,689
|
|
|
|
(8,972,618
|
)
|
|
|
52,779,071
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New River Cove
|
|
Davie, FL
|
|
1999
|
|
|
316
|
|
|
|
15,800,000
|
|
|
|
46,142,895
|
|
|
|
-
|
|
|
|
1,049,654
|
|
|
|
15,800,000
|
|
|
|
47,192,549
|
|
|
|
62,992,549
|
|
|
|
(10,341,684
|
)
|
|
|
52,650,865
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northampton 1
|
|
Largo, MD
|
|
1977
|
|
|
344
|
|
|
|
1,843,200
|
|
|
|
17,528,381
|
|
|
|
-
|
|
|
|
5,798,143
|
|
|
|
1,843,200
|
|
|
|
23,326,524
|
|
|
|
25,169,724
|
|
|
|
(14,229,754
|
)
|
|
|
10,939,970
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northampton 2
|
|
Largo, MD
|
|
1988
|
|
|
276
|
|
|
|
1,513,500
|
|
|
|
14,246,990
|
|
|
|
-
|
|
|
|
3,654,124
|
|
|
|
1,513,500
|
|
|
|
17,901,114
|
|
|
|
19,414,614
|
|
|
|
(10,571,731
|
)
|
|
|
8,842,883
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northglen
|
|
Valencia, CA
|
|
1988
|
|
|
234
|
|
|
|
9,360,000
|
|
|
|
20,778,553
|
|
|
|
-
|
|
|
|
1,728,818
|
|
|
|
9,360,000
|
|
|
|
22,507,371
|
|
|
|
31,867,371
|
|
|
|
(8,256,285
|
)
|
|
|
23,611,086
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northlake (MD)
|
|
Germantown, MD
|
|
1985
|
|
|
304
|
|
|
|
15,000,000
|
|
|
|
23,142,302
|
|
|
|
-
|
|
|
|
9,754,730
|
|
|
|
15,000,000
|
|
|
|
32,897,032
|
|
|
|
47,897,032
|
|
|
|
(9,909,101
|
)
|
|
|
37,987,931
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northridge
|
|
Pleasant Hill, CA
|
|
1974
|
|
|
221
|
|
|
|
5,527,800
|
|
|
|
14,691,705
|
|
|
|
-
|
|
|
|
8,471,887
|
|
|
|
5,527,800
|
|
|
|
23,163,592
|
|
|
|
28,691,392
|
|
|
|
(9,697,063
|
)
|
|
|
18,994,329
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oak Park North
|
|
Agoura Hills, CA
|
|
1990
|
|
|
220
|
|
|
|
1,706,900
|
|
|
|
15,362,666
|
|
|
|
-
|
|
|
|
2,806,978
|
|
|
|
1,706,900
|
|
|
|
18,169,644
|
|
|
|
19,876,544
|
|
|
|
(9,627,790
|
)
|
|
|
10,248,754
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oak Park South
|
|
Agoura Hills, CA
|
|
1989
|
|
|
224
|
|
|
|
1,683,800
|
|
|
|
15,154,608
|
|
|
|
-
|
|
|
|
2,923,629
|
|
|
|
1,683,800
|
|
|
|
18,078,237
|
|
|
|
19,762,037
|
|
|
|
(9,624,230
|
)
|
|
|
10,137,807
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oaks at Falls Church
|
|
Falls Church, VA
|
|
1966
|
|
|
176
|
|
|
|
20,240,000
|
|
|
|
20,152,616
|
|
|
|
-
|
|
|
|
3,552,434
|
|
|
|
20,240,000
|
|
|
|
23,705,050
|
|
|
|
43,945,050
|
|
|
|
(5,665,262
|
)
|
|
|
38,279,788
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Crest
|
|
Solana Beach, CA
|
|
1986
|
|
|
146
|
|
|
|
5,111,200
|
|
|
|
11,910,438
|
|
|
|
-
|
|
|
|
2,058,043
|
|
|
|
5,111,200
|
|
|
|
13,968,481
|
|
|
|
19,079,681
|
|
|
|
(6,514,987
|
)
|
|
|
12,564,694
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Walk
|
|
Key West, FL
|
|
1990
|
|
|
297
|
|
|
|
2,838,749
|
|
|
|
25,545,009
|
|
|
|
-
|
|
|
|
3,233,758
|
|
|
|
2,838,749
|
|
|
|
28,778,767
|
|
|
|
31,617,516
|
|
|
|
(13,599,381
|
)
|
|
|
18,018,135
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olympus Towers
|
|
Seattle, WA (G)
|
|
2000
|
|
|
328
|
|
|
|
14,752,034
|
|
|
|
73,335,425
|
|
|
|
-
|
|
|
|
2,226,097
|
|
|
|
14,752,034
|
|
|
|
75,561,522
|
|
|
|
90,313,556
|
|
|
|
(19,377,834
|
)
|
|
|
70,935,722
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Orchard Ridge
|
|
Lynnwood, WA
|
|
1988
|
|
|
104
|
|
|
|
480,600
|
|
|
|
4,372,033
|
|
|
|
-
|
|
|
|
1,127,901
|
|
|
|
480,600
|
|
|
|
5,499,934
|
|
|
|
5,980,534
|
|
|
|
(3,295,398
|
)
|
|
|
2,685,136
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overlook Manor
|
|
Frederick, MD
|
|
1980/1985
|
|
|
108
|
|
|
|
1,299,100
|
|
|
|
3,930,931
|
|
|
|
-
|
|
|
|
2,142,057
|
|
|
|
1,299,100
|
|
|
|
6,072,988
|
|
|
|
7,372,088
|
|
|
|
(3,277,788
|
)
|
|
|
4,094,300
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overlook Manor II
|
|
Frederick, MD
|
|
1980/1985
|
|
|
182
|
|
|
|
2,186,300
|
|
|
|
6,262,597
|
|
|
|
-
|
|
|
|
1,253,022
|
|
|
|
2,186,300
|
|
|
|
7,515,619
|
|
|
|
9,701,919
|
|
|
|
(3,549,205
|
)
|
|
|
6,152,714
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paces Station
|
|
Atlanta, GA
|
|
1984-1989
|
|
|
610
|
|
|
|
4,801,500
|
|
|
|
32,548,053
|
|
|
|
-
|
|
|
|
8,202,985
|
|
|
|
4,801,500
|
|
|
|
40,751,038
|
|
|
|
45,552,538
|
|
|
|
(20,808,476
|
)
|
|
|
24,744,062
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Palm Trace Landings
|
|
Davie, FL
|
|
1995
|
|
|
768
|
|
|
|
38,400,000
|
|
|
|
105,693,432
|
|
|
|
-
|
|
|
|
2,605,905
|
|
|
|
38,400,000
|
|
|
|
108,299,337
|
|
|
|
146,699,337
|
|
|
|
(23,469,327
|
)
|
|
|
123,230,010
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Panther Ridge
|
|
Federal Way, WA
|
|
1980
|
|
|
260
|
|
|
|
1,055,800
|
|
|
|
9,506,117
|
|
|
|
-
|
|
|
|
1,846,801
|
|
|
|
1,055,800
|
|
|
|
11,352,918
|
|
|
|
12,408,718
|
|
|
|
(5,866,485
|
)
|
|
|
6,542,233
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parc 77
|
|
New York, NY (G)
|
|
1903
|
|
|
137
|
|
|
|
40,504,000
|
|
|
|
18,025,679
|
|
|
|
-
|
|
|
|
4,115,467
|
|
|
|
40,504,000
|
|
|
|
22,141,146
|
|
|
|
62,645,146
|
|
|
|
(4,773,963
|
)
|
|
|
57,871,183
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parc Cameron
|
|
New York, NY (G)
|
|
1927
|
|
|
166
|
|
|
|
37,600,000
|
|
|
|
9,855,597
|
|
|
|
-
|
|
|
|
5,120,583
|
|
|
|
37,600,000
|
|
|
|
14,976,180
|
|
|
|
52,576,180
|
|
|
|
(3,867,865
|
)
|
|
|
48,708,315
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parc Coliseum
|
|
New York, NY (G)
|
|
1910
|
|
|
177
|
|
|
|
52,654,000
|
|
|
|
23,045,751
|
|
|
|
-
|
|
|
|
6,947,750
|
|
|
|
52,654,000
|
|
|
|
29,993,501
|
|
|
|
82,647,501
|
|
|
|
(6,372,704
|
)
|
|
|
76,274,797
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Park at Turtle Run, The
|
|
Coral Springs, FL
|
|
2001
|
|
|
257
|
|
|
|
15,420,000
|
|
|
|
36,064,629
|
|
|
|
-
|
|
|
|
898,823
|
|
|
|
15,420,000
|
|
|
|
36,963,452
|
|
|
|
52,383,452
|
|
|
|
(9,407,101
|
)
|
|
|
42,976,351
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Park West (CA)
|
|
Los Angeles, CA
|
|
1987/1990
|
|
|
444
|
|
|
|
3,033,500
|
|
|
|
27,302,383
|
|
|
|
-
|
|
|
|
5,418,219
|
|
|
|
3,033,500
|
|
|
|
32,720,602
|
|
|
|
35,754,102
|
|
|
|
(17,933,416
|
)
|
|
|
17,820,686
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parkside
|
|
Union City, CA
|
|
1979
|
|
|
208
|
|
|
|
6,246,700
|
|
|
|
11,827,453
|
|
|
|
-
|
|
|
|
3,310,231
|
|
|
|
6,246,700
|
|
|
|
15,137,684
|
|
|
|
21,384,384
|
|
|
|
(7,795,045
|
)
|
|
|
13,589,339
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parkview Terrace
|
|
Redlands, CA
|
|
1986
|
|
|
558
|
|
|
|
4,969,200
|
|
|
|
35,653,777
|
|
|
|
-
|
|
|
|
11,282,338
|
|
|
|
4,969,200
|
|
|
|
46,936,115
|
|
|
|
51,905,315
|
|
|
|
(22,196,279
|
)
|
|
|
29,709,036
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Phillips Park
|
|
Wellesley, MA
|
|
1988
|
|
|
49
|
|
|
|
816,922
|
|
|
|
5,460,955
|
|
|
|
-
|
|
|
|
936,091
|
|
|
|
816,922
|
|
|
|
6,397,046
|
|
|
|
7,213,968
|
|
|
|
(2,475,515
|
)
|
|
|
4,738,453
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pine Harbour
|
|
Orlando, FL
|
|
1991
|
|
|
366
|
|
|
|
1,664,300
|
|
|
|
14,970,915
|
|
|
|
-
|
|
|
|
3,529,258
|
|
|
|
1,664,300
|
|
|
|
18,500,173
|
|
|
|
20,164,473
|
|
|
|
(11,225,249
|
)
|
|
|
8,939,224
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Playa Pacifica
|
|
Hermosa Beach,CA
|
|
1972
|
|
|
285
|
|
|
|
35,100,000
|
|
|
|
33,473,822
|
|
|
|
-
|
|
|
|
7,145,521
|
|
|
|
35,100,000
|
|
|
|
40,619,343
|
|
|
|
75,719,343
|
|
|
|
(10,641,111
|
)
|
|
|
65,078,232
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pointe at South Mountain
|
|
Phoenix, AZ
|
|
1988
|
|
|
364
|
|
|
|
2,228,800
|
|
|
|
20,059,311
|
|
|
|
-
|
|
|
|
3,210,958
|
|
|
|
2,228,800
|
|
|
|
23,270,269
|
|
|
|
25,499,069
|
|
|
|
(11,847,168
|
)
|
|
|
13,651,901
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Polos East
|
|
Orlando, FL
|
|
1991
|
|
|
308
|
|
|
|
1,386,000
|
|
|
|
19,058,620
|
|
|
|
-
|
|
|
|
2,188,231
|
|
|
|
1,386,000
|
|
|
|
21,246,851
|
|
|
|
22,632,851
|
|
|
|
(9,567,266
|
)
|
|
|
13,065,585
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Port Royale
|
|
Ft. Lauderdale, FL (G)
|
|
1988
|
|
|
252
|
|
|
|
1,754,200
|
|
|
|
15,789,873
|
|
|
|
-
|
|
|
|
7,514,240
|
|
|
|
1,754,200
|
|
|
|
23,304,113
|
|
|
|
25,058,313
|
|
|
|
(12,612,882
|
)
|
|
|
12,445,431
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Port Royale II
|
|
Ft. Lauderdale, FL (G)
|
|
1988
|
|
|
161
|
|
|
|
1,022,200
|
|
|
|
9,203,166
|
|
|
|
-
|
|
|
|
4,702,265
|
|
|
|
1,022,200
|
|
|
|
13,905,431
|
|
|
|
14,927,631
|
|
|
|
(7,140,443
|
)
|
|
|
7,787,188
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Port Royale III
|
|
Ft. Lauderdale, FL (G)
|
|
1988
|
|
|
324
|
|
|
|
7,454,900
|
|
|
|
14,725,802
|
|
|
|
-
|
|
|
|
8,935,675
|
|
|
|
7,454,900
|
|
|
|
23,661,477
|
|
|
|
31,116,377
|
|
|
|
(11,497,857
|
)
|
|
|
19,618,520
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Port Royale IV
|
|
Ft. Lauderdale, FL
|
|
(F)
|
|
|
-
|
|
|
|
-
|
|
|
|
387,471
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
387,471
|
|
|
|
387,471
|
|
|
|
-
|
|
|
|
387,471
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portofino
|
|
Chino Hills, CA
|
|
1989
|
|
|
176
|
|
|
|
3,572,400
|
|
|
|
14,660,994
|
|
|
|
-
|
|
|
|
2,150,998
|
|
|
|
3,572,400
|
|
|
|
16,811,992
|
|
|
|
20,384,392
|
|
|
|
(7,854,366
|
)
|
|
|
12,530,026
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portofino (Val)
|
|
Valencia, CA
|
|
1989
|
|
|
216
|
|
|
|
8,640,000
|
|
|
|
21,487,126
|
|
|
|
-
|
|
|
|
2,302,820
|
|
|
|
8,640,000
|
|
|
|
23,789,946
|
|
|
|
32,429,946
|
|
|
|
(8,794,584
|
)
|
|
|
23,635,362
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portside Towers
|
|
Jersey City, NJ (G)
|
|
1992-1997
|
|
|
527
|
|
|
|
22,487,006
|
|
|
|
96,842,913
|
|
|
|
-
|
|
|
|
14,773,378
|
|
|
|
22,487,006
|
|
|
|
111,616,291
|
|
|
|
134,103,297
|
|
|
|
(47,349,520
|
)
|
|
|
86,753,777
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preserve at Deer Creek
|
|
Deerfield Beach, FL
|
|
1997
|
|
|
540
|
|
|
|
13,500,000
|
|
|
|
60,011,208
|
|
|
|
-
|
|
|
|
3,069,187
|
|
|
|
13,500,000
|
|
|
|
63,080,395
|
|
|
|
76,580,395
|
|
|
|
(16,723,806
|
)
|
|
|
59,856,589
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prime, The
|
|
Arlington, VA
|
|
2002
|
|
|
256
|
|
|
|
32,000,000
|
|
|
|
64,436,539
|
|
|
|
-
|
|
|
|
587,595
|
|
|
|
32,000,000
|
|
|
|
65,024,134
|
|
|
|
97,024,134
|
|
|
|
(12,202,034
|
)
|
|
|
84,822,100
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Promenade at Aventura
|
|
Aventura, FL
|
|
1995
|
|
|
296
|
|
|
|
13,320,000
|
|
|
|
30,353,748
|
|
|
|
-
|
|
|
|
4,740,072
|
|
|
|
13,320,000
|
|
|
|
35,093,820
|
|
|
|
48,413,820
|
|
|
|
(12,325,089
|
)
|
|
|
36,088,731
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Promenade at Town Center I
|
|
Valencia, CA
|
|
2001
|
|
|
294
|
|
|
|
14,700,000
|
|
|
|
35,390,279
|
|
|
|
-
|
|
|
|
2,762,304
|
|
|
|
14,700,000
|
|
|
|
38,152,583
|
|
|
|
52,852,583
|
|
|
|
(10,327,370
|
)
|
|
|
42,525,213
|
|
|
|
-
|
S-7
EQUITY
RESIDENTIAL
Schedule III - Real Estate and Accumulated
Depreciation
December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Initial Cost to
|
|
|
|
|
|
Acquisition
|
|
|
|
|
|
at Close of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
|
|
|
Company
|
|
|
|
|
|
(Improvements, net) (E)
|
|
|
|
|
|
Period 12/31/10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of
|
|
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Accumulated
|
|
|
Investment in Real
|
|
|
|
Apartment Name
|
|
Location
|
|
Construction
|
|
Units (H)
|
|
|
Land
|
|
|
Fixtures
|
|
|
Land
|
|
|
Fixtures
|
|
|
Land
|
|
|
Fixtures (A)
|
|
|
Total (B)
|
|
|
Depreciation (C)
|
|
|
Estate, Net at 12/31/10 (B)
|
|
|
Encumbrances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Promenade at Wyndham Lakes
|
|
Coral Springs, FL
|
|
1998
|
|
|
332
|
|
|
|
6,640,000
|
|
|
|
26,743,760
|
|
|
|
-
|
|
|
|
3,364,705
|
|
|
|
6,640,000
|
|
|
|
30,108,465
|
|
|
|
36,748,465
|
|
|
|
(10,964,932
|
)
|
|
|
25,783,533
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Promenade Terrace
|
|
Corona, CA
|
|
1990
|
|
|
330
|
|
|
|
2,272,800
|
|
|
|
20,546,289
|
|
|
|
-
|
|
|
|
4,744,546
|
|
|
|
2,272,800
|
|
|
|
25,290,835
|
|
|
|
27,563,635
|
|
|
|
(13,575,380
|
)
|
|
|
13,988,255
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Promontory Pointe I & II
|
|
Phoenix, AZ
|
|
1984/1996
|
|
|
424
|
|
|
|
2,355,509
|
|
|
|
30,421,840
|
|
|
|
-
|
|
|
|
3,698,629
|
|
|
|
2,355,509
|
|
|
|
34,120,469
|
|
|
|
36,475,978
|
|
|
|
(16,314,043
|
)
|
|
|
20,161,935
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prospect Towers
|
|
Hackensack, NJ
|
|
1995
|
|
|
157
|
|
|
|
3,926,600
|
|
|
|
31,738,452
|
|
|
|
-
|
|
|
|
2,938,287
|
|
|
|
3,926,600
|
|
|
|
34,676,739
|
|
|
|
38,603,339
|
|
|
|
(13,635,911
|
)
|
|
|
24,967,428
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prospect Towers II
|
|
Hackensack, NJ
|
|
2002
|
|
|
203
|
|
|
|
4,500,000
|
|
|
|
33,104,733
|
|
|
|
-
|
|
|
|
2,070,180
|
|
|
|
4,500,000
|
|
|
|
35,174,913
|
|
|
|
39,674,913
|
|
|
|
(10,813,863
|
)
|
|
|
28,861,050
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ravens Crest
|
|
Plainsboro, NJ
|
|
1984
|
|
|
704
|
|
|
|
4,670,850
|
|
|
|
42,080,642
|
|
|
|
-
|
|
|
|
11,945,748
|
|
|
|
4,670,850
|
|
|
|
54,026,390
|
|
|
|
58,697,240
|
|
|
|
(31,532,339
|
)
|
|
|
27,164,901
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redmond Ridge
|
|
Redmond, WA
|
|
2008
|
|
|
321
|
|
|
|
6,975,705
|
|
|
|
46,175,001
|
|
|
|
-
|
|
|
|
73,615
|
|
|
|
6,975,705
|
|
|
|
46,248,616
|
|
|
|
53,224,321
|
|
|
|
(4,628,114
|
)
|
|
|
48,596,207
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Red 160 (fka Redmond Way)
|
|
Redmond, WA (G)
|
|
(F)
|
|
|
-
|
|
|
|
15,546,376
|
|
|
|
61,417,903
|
|
|
|
-
|
|
|
|
9,488
|
|
|
|
15,546,376
|
|
|
|
61,427,391
|
|
|
|
76,973,767
|
|
|
|
(339
|
)
|
|
|
76,973,428
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regency Palms
|
|
Huntington Beach, CA
|
|
1969
|
|
|
310
|
|
|
|
1,857,400
|
|
|
|
16,713,254
|
|
|
|
-
|
|
|
|
4,433,614
|
|
|
|
1,857,400
|
|
|
|
21,146,868
|
|
|
|
23,004,268
|
|
|
|
(11,462,162
|
)
|
|
|
11,542,106
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regency Park
|
|
Centreville, VA
|
|
1989
|
|
|
252
|
|
|
|
2,521,500
|
|
|
|
16,200,666
|
|
|
|
-
|
|
|
|
7,802,524
|
|
|
|
2,521,500
|
|
|
|
24,003,190
|
|
|
|
26,524,690
|
|
|
|
(11,693,111
|
)
|
|
|
14,831,579
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Registry
|
|
Northglenn, CO
|
|
1986
|
|
|
208
|
|
|
|
2,000,000
|
|
|
|
10,926,759
|
|
|
|
-
|
|
|
|
48,337
|
|
|
|
2,000,000
|
|
|
|
10,975,096
|
|
|
|
12,975,096
|
|
|
|
(1,278,875
|
)
|
|
|
11,696,221
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remington Place
|
|
Phoenix, AZ
|
|
1983
|
|
|
412
|
|
|
|
1,492,750
|
|
|
|
13,377,478
|
|
|
|
-
|
|
|
|
4,637,494
|
|
|
|
1,492,750
|
|
|
|
18,014,972
|
|
|
|
19,507,722
|
|
|
|
(10,299,256
|
)
|
|
|
9,208,466
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Renaissance Villas
|
|
Berkeley, CA (G)
|
|
1998
|
|
|
34
|
|
|
|
2,458,000
|
|
|
|
4,542,000
|
|
|
|
-
|
|
|
|
5,418
|
|
|
|
2,458,000
|
|
|
|
4,547,418
|
|
|
|
7,005,418
|
|
|
|
(332,879
|
)
|
|
|
6,672,539
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve at Ashley Lake
|
|
Boynton Beach, FL
|
|
1990
|
|
|
440
|
|
|
|
3,520,400
|
|
|
|
23,332,494
|
|
|
|
-
|
|
|
|
4,721,183
|
|
|
|
3,520,400
|
|
|
|
28,053,677
|
|
|
|
31,574,077
|
|
|
|
(13,452,026
|
)
|
|
|
18,122,051
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve at Town Center
|
|
Loudon, VA
|
|
2002
|
|
|
290
|
|
|
|
3,144,056
|
|
|
|
27,669,121
|
|
|
|
-
|
|
|
|
712,324
|
|
|
|
3,144,056
|
|
|
|
28,381,445
|
|
|
|
31,525,501
|
|
|
|
(7,401,808
|
)
|
|
|
24,123,693
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve at Town Center II (WA)
|
|
Mill Creek, WA
|
|
2009
|
|
|
100
|
|
|
|
4,310,417
|
|
|
|
17,172,642
|
|
|
|
-
|
|
|
|
7,133
|
|
|
|
4,310,417
|
|
|
|
17,179,775
|
|
|
|
21,490,192
|
|
|
|
(614,973
|
)
|
|
|
20,875,219
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve at Town Center III
|
|
Mill Creek, WA
|
|
(F)
|
|
|
-
|
|
|
|
2,089,388
|
|
|
|
220,235
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,089,388
|
|
|
|
220,235
|
|
|
|
2,309,623
|
|
|
|
-
|
|
|
|
2,309,623
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retreat, The
|
|
Phoenix, AZ
|
|
1999
|
|
|
480
|
|
|
|
3,475,114
|
|
|
|
27,265,252
|
|
|
|
-
|
|
|
|
2,380,882
|
|
|
|
3,475,114
|
|
|
|
29,646,134
|
|
|
|
33,121,248
|
|
|
|
(12,339,194
|
)
|
|
|
20,782,054
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rianna I
|
|
Seattle, WA (G)
|
|
2000
|
|
|
78
|
|
|
|
2,268,160
|
|
|
|
14,864,482
|
|
|
|
-
|
|
|
|
84,986
|
|
|
|
2,268,160
|
|
|
|
14,949,468
|
|
|
|
17,217,628
|
|
|
|
(1,125,268
|
)
|
|
|
16,092,360
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ridgewood Village I&II
|
|
San Diego, CA
|
|
1997
|
|
|
408
|
|
|
|
11,809,500
|
|
|
|
34,004,048
|
|
|
|
-
|
|
|
|
2,195,996
|
|
|
|
11,809,500
|
|
|
|
36,200,044
|
|
|
|
48,009,544
|
|
|
|
(14,118,993
|
)
|
|
|
33,890,551
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
River Pointe at Den Rock Park
|
|
Lawrence, MA
|
|
2000
|
|
|
174
|
|
|
|
4,615,702
|
|
|
|
18,440,147
|
|
|
|
-
|
|
|
|
1,212,909
|
|
|
|
4,615,702
|
|
|
|
19,653,056
|
|
|
|
24,268,758
|
|
|
|
(6,078,818
|
)
|
|
|
18,189,940
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
River Tower
|
|
New York, NY (G)
|
|
1982
|
|
|
323
|
|
|
|
118,669,441
|
|
|
|
98,880,559
|
|
|
|
-
|
|
|
|
401,052
|
|
|
|
118,669,441
|
|
|
|
99,281,611
|
|
|
|
217,951,052
|
|
|
|
(12,970,964
|
)
|
|
|
204,980,088
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rivers Bend (CT)
|
|
Windsor, CT
|
|
1973
|
|
|
373
|
|
|
|
3,325,517
|
|
|
|
22,573,826
|
|
|
|
-
|
|
|
|
2,724,959
|
|
|
|
3,325,517
|
|
|
|
25,298,785
|
|
|
|
28,624,302
|
|
|
|
(9,670,355
|
)
|
|
|
18,953,947
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Riverview Condominiums
|
|
Norwalk, CT
|
|
1991
|
|
|
92
|
|
|
|
2,300,000
|
|
|
|
7,406,730
|
|
|
|
-
|
|
|
|
1,806,846
|
|
|
|
2,300,000
|
|
|
|
9,213,576
|
|
|
|
11,513,576
|
|
|
|
(4,117,696
|
)
|
|
|
7,395,880
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Royal Oaks (FL)
|
|
Jacksonville, FL
|
|
1991
|
|
|
284
|
|
|
|
1,988,000
|
|
|
|
13,645,117
|
|
|
|
-
|
|
|
|
3,882,711
|
|
|
|
1,988,000
|
|
|
|
17,527,828
|
|
|
|
19,515,828
|
|
|
|
(7,780,869
|
)
|
|
|
11,734,959
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sabal Palm at Carrollwood Place
|
|
Tampa, FL
|
|
1995
|
|
|
432
|
|
|
|
3,888,000
|
|
|
|
26,911,542
|
|
|
|
-
|
|
|
|
2,533,589
|
|
|
|
3,888,000
|
|
|
|
29,445,131
|
|
|
|
33,333,131
|
|
|
|
(12,979,307
|
)
|
|
|
20,353,824
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sabal Palm at Lake Buena Vista
|
|
Orlando, FL
|
|
1988
|
|
|
400
|
|
|
|
2,800,000
|
|
|
|
23,687,893
|
|
|
|
-
|
|
|
|
3,982,057
|
|
|
|
2,800,000
|
|
|
|
27,669,950
|
|
|
|
30,469,950
|
|
|
|
(12,197,653
|
)
|
|
|
18,272,297
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sabal Palm at Metrowest
|
|
Orlando, FL
|
|
1998
|
|
|
411
|
|
|
|
4,110,000
|
|
|
|
38,394,865
|
|
|
|
-
|
|
|
|
3,876,633
|
|
|
|
4,110,000
|
|
|
|
42,271,498
|
|
|
|
46,381,498
|
|
|
|
(18,443,292
|
)
|
|
|
27,938,206
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sabal Palm at Metrowest II
|
|
Orlando, FL
|
|
1997
|
|
|
456
|
|
|
|
4,560,000
|
|
|
|
33,907,283
|
|
|
|
-
|
|
|
|
2,691,106
|
|
|
|
4,560,000
|
|
|
|
36,598,389
|
|
|
|
41,158,389
|
|
|
|
(15,830,427
|
)
|
|
|
25,327,962
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sabal Pointe
|
|
Coral Springs, FL
|
|
1995
|
|
|
275
|
|
|
|
1,951,600
|
|
|
|
17,570,508
|
|
|
|
-
|
|
|
|
3,961,145
|
|
|
|
1,951,600
|
|
|
|
21,531,653
|
|
|
|
23,483,253
|
|
|
|
(11,635,146
|
)
|
|
|
11,848,107
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Saddle Ridge
|
|
Ashburn, VA
|
|
1989
|
|
|
216
|
|
|
|
1,364,800
|
|
|
|
12,283,616
|
|
|
|
-
|
|
|
|
2,201,030
|
|
|
|
1,364,800
|
|
|
|
14,484,646
|
|
|
|
15,849,446
|
|
|
|
(7,934,560
|
)
|
|
|
7,914,886
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sage
|
|
Everett, WA
|
|
2002
|
|
|
123
|
|
|
|
2,500,000
|
|
|
|
12,021,256
|
|
|
|
-
|
|
|
|
412,814
|
|
|
|
2,500,000
|
|
|
|
12,434,070
|
|
|
|
14,934,070
|
|
|
|
(2,576,867
|
)
|
|
|
12,357,203
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savannah at Park Place
|
|
Atlanta, GA
|
|
2001
|
|
|
416
|
|
|
|
7,696,095
|
|
|
|
34,114,542
|
|
|
|
-
|
|
|
|
2,628,399
|
|
|
|
7,696,095
|
|
|
|
36,742,941
|
|
|
|
44,439,036
|
|
|
|
(10,138,404
|
)
|
|
|
34,300,632
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savoy III
|
|
Aurora, CO
|
|
(F)
|
|
|
-
|
|
|
|
659,165
|
|
|
|
4,749,723
|
|
|
|
-
|
|
|
|
-
|
|
|
|
659,165
|
|
|
|
4,749,723
|
|
|
|
5,408,888
|
|
|
|
-
|
|
|
|
5,408,888
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sawgrass Cove
|
|
Bradenton, FL
|
|
1991
|
|
|
336
|
|
|
|
3,360,000
|
|
|
|
12,587,189
|
|
|
|
-
|
|
|
|
80,974
|
|
|
|
3,360,000
|
|
|
|
12,668,163
|
|
|
|
16,028,163
|
|
|
|
(1,947,404
|
)
|
|
|
14,080,759
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Scarborough Square
|
|
Rockville, MD
|
|
1967
|
|
|
121
|
|
|
|
1,815,000
|
|
|
|
7,608,126
|
|
|
|
-
|
|
|
|
2,394,761
|
|
|
|
1,815,000
|
|
|
|
10,002,887
|
|
|
|
11,817,887
|
|
|
|
(4,923,278
|
)
|
|
|
6,894,609
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sedona Ridge
|
|
Phoenix, AZ
|
|
1989
|
|
|
250
|
|
|
|
3,750,000
|
|
|
|
14,750,000
|
|
|
|
-
|
|
|
|
254,926
|
|
|
|
3,750,000
|
|
|
|
15,004,926
|
|
|
|
18,754,926
|
|
|
|
(2,039,282
|
)
|
|
|
16,715,644
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Seeley Lake
|
|
Lakewood, WA
|
|
1990
|
|
|
522
|
|
|
|
2,760,400
|
|
|
|
24,845,286
|
|
|
|
-
|
|
|
|
4,006,480
|
|
|
|
2,760,400
|
|
|
|
28,851,766
|
|
|
|
31,612,166
|
|
|
|
(14,437,537
|
)
|
|
|
17,174,629
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Seventh & James
|
|
Seattle, WA
|
|
1992
|
|
|
96
|
|
|
|
663,800
|
|
|
|
5,974,803
|
|
|
|
-
|
|
|
|
2,878,988
|
|
|
|
663,800
|
|
|
|
8,853,791
|
|
|
|
9,517,591
|
|
|
|
(4,849,519
|
)
|
|
|
4,668,072
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shadow Creek
|
|
Winter Springs, FL
|
|
2000
|
|
|
280
|
|
|
|
6,000,000
|
|
|
|
21,719,768
|
|
|
|
-
|
|
|
|
1,434,843
|
|
|
|
6,000,000
|
|
|
|
23,154,611
|
|
|
|
29,154,611
|
|
|
|
(6,340,966
|
)
|
|
|
22,813,645
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sheridan Lake Club
|
|
Dania Beach, FL
|
|
2001
|
|
|
240
|
|
|
|
12,000,000
|
|
|
|
23,170,580
|
|
|
|
-
|
|
|
|
1,252,843
|
|
|
|
12,000,000
|
|
|
|
24,423,423
|
|
|
|
36,423,423
|
|
|
|
(5,113,176
|
)
|
|
|
31,310,247
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sheridan Ocean Club combined
|
|
Dania Beach, FL
|
|
1991
|
|
|
648
|
|
|
|
18,313,414
|
|
|
|
47,091,593
|
|
|
|
-
|
|
|
|
14,017,392
|
|
|
|
18,313,414
|
|
|
|
61,108,985
|
|
|
|
79,422,399
|
|
|
|
(21,027,176
|
)
|
|
|
58,395,223
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Siena Terrace
|
|
Lake Forest, CA
|
|
1988
|
|
|
356
|
|
|
|
8,900,000
|
|
|
|
24,083,024
|
|
|
|
-
|
|
|
|
2,738,600
|
|
|
|
8,900,000
|
|
|
|
26,821,624
|
|
|
|
35,721,624
|
|
|
|
(11,637,233
|
)
|
|
|
24,084,391
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver Springs (FL)
|
|
Jacksonville, FL
|
|
1985
|
|
|
432
|
|
|
|
1,831,100
|
|
|
|
16,474,735
|
|
|
|
-
|
|
|
|
5,779,723
|
|
|
|
1,831,100
|
|
|
|
22,254,458
|
|
|
|
24,085,558
|
|
|
|
(12,404,671
|
)
|
|
|
11,680,887
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Skycrest
|
|
Valencia, CA
|
|
1999
|
|
|
264
|
|
|
|
10,560,000
|
|
|
|
25,574,457
|
|
|
|
-
|
|
|
|
1,870,144
|
|
|
|
10,560,000
|
|
|
|
27,444,601
|
|
|
|
38,004,601
|
|
|
|
(10,001,263
|
)
|
|
|
28,003,338
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Skylark
|
|
Union City, CA
|
|
1986
|
|
|
174
|
|
|
|
1,781,600
|
|
|
|
16,731,916
|
|
|
|
-
|
|
|
|
1,608,125
|
|
|
|
1,781,600
|
|
|
|
18,340,041
|
|
|
|
20,121,641
|
|
|
|
(8,137,578
|
)
|
|
|
11,984,063
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Skyline Terrace
|
|
Burlingame, CA
|
|
1967/1987
|
|
|
138
|
|
|
|
16,836,000
|
|
|
|
35,414,000
|
|
|
|
-
|
|
|
|
469
|
|
|
|
16,836,000
|
|
|
|
35,414,469
|
|
|
|
52,250,469
|
|
|
|
(227,411
|
)
|
|
|
52,023,058
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Skyline Towers
|
|
Falls Church, VA (G)
|
|
1971
|
|
|
939
|
|
|
|
78,278,200
|
|
|
|
91,485,591
|
|
|
|
-
|
|
|
|
27,969,652
|
|
|
|
78,278,200
|
|
|
|
119,455,243
|
|
|
|
197,733,443
|
|
|
|
(30,881,457
|
)
|
|
|
166,851,986
|
|
|
|
-
|
S-8
EQUITY
RESIDENTIAL
Schedule III - Real Estate and Accumulated
Depreciation
December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Initial Cost to
|
|
|
|
|
|
Acquisition
|
|
|
|
|
|
at Close of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
|
|
|
Company
|
|
|
|
|
|
(Improvements, net) (E)
|
|
|
|
|
|
Period 12/31/10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of
|
|
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Accumulated
|
|
|
Investment in Real
|
|
|
|
Apartment Name
|
|
Location
|
|
Construction
|
|
Units (H)
|
|
|
Land
|
|
|
Fixtures
|
|
|
Land
|
|
|
Fixtures
|
|
|
Land
|
|
|
Fixtures (A)
|
|
|
Total (B)
|
|
|
Depreciation (C)
|
|
|
Estate, Net at 12/31/10 (B)
|
|
|
Encumbrances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Skyview
|
|
Rancho Santa Margarita, CA
|
|
1999
|
|
|
260
|
|
|
|
3,380,000
|
|
|
|
21,952,863
|
|
|
|
-
|
|
|
|
1,667,929
|
|
|
|
3,380,000
|
|
|
|
23,620,792
|
|
|
|
27,000,792
|
|
|
|
(9,657,421
|
)
|
|
|
17,343,371
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sonoran
|
|
Phoenix, AZ
|
|
1995
|
|
|
429
|
|
|
|
2,361,922
|
|
|
|
31,841,724
|
|
|
|
-
|
|
|
|
2,900,306
|
|
|
|
2,361,922
|
|
|
|
34,742,030
|
|
|
|
37,103,952
|
|
|
|
(16,082,432
|
)
|
|
|
21,021,520
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southwood
|
|
Palo Alto, CA
|
|
1985
|
|
|
100
|
|
|
|
6,936,600
|
|
|
|
14,324,069
|
|
|
|
-
|
|
|
|
2,065,301
|
|
|
|
6,936,600
|
|
|
|
16,389,370
|
|
|
|
23,325,970
|
|
|
|
(7,489,798
|
)
|
|
|
15,836,172
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Springbrook Estates
|
|
Riverside, CA
|
|
(F)
|
|
|
-
|
|
|
|
18,200,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
18,200,000
|
|
|
|
-
|
|
|
|
18,200,000
|
|
|
|
-
|
|
|
|
18,200,000
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
St. Andrews at Winston Park
|
|
Coconut Creek, FL
|
|
1997
|
|
|
284
|
|
|
|
5,680,000
|
|
|
|
19,812,090
|
|
|
|
-
|
|
|
|
2,144,175
|
|
|
|
5,680,000
|
|
|
|
21,956,265
|
|
|
|
27,636,265
|
|
|
|
(7,512,645
|
)
|
|
|
20,123,620
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stoney Creek
|
|
Lakewood, WA
|
|
1990
|
|
|
231
|
|
|
|
1,215,200
|
|
|
|
10,938,134
|
|
|
|
-
|
|
|
|
2,267,480
|
|
|
|
1,215,200
|
|
|
|
13,205,614
|
|
|
|
14,420,814
|
|
|
|
(6,703,659
|
)
|
|
|
7,717,155
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summerwood
|
|
Hayward, CA
|
|
1982
|
|
|
162
|
|
|
|
4,810,644
|
|
|
|
6,942,743
|
|
|
|
-
|
|
|
|
2,132,610
|
|
|
|
4,810,644
|
|
|
|
9,075,353
|
|
|
|
13,885,997
|
|
|
|
(4,231,400
|
)
|
|
|
9,654,597
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summit & Birch Hill
|
|
Farmington, CT
|
|
1967
|
|
|
186
|
|
|
|
1,757,438
|
|
|
|
11,748,112
|
|
|
|
-
|
|
|
|
2,916,135
|
|
|
|
1,757,438
|
|
|
|
14,664,247
|
|
|
|
16,421,685
|
|
|
|
(5,733,897
|
)
|
|
|
10,687,788
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summit at Lake Union
|
|
Seattle, WA
|
|
1995 -1997
|
|
|
150
|
|
|
|
1,424,700
|
|
|
|
12,852,461
|
|
|
|
-
|
|
|
|
3,097,192
|
|
|
|
1,424,700
|
|
|
|
15,949,653
|
|
|
|
17,374,353
|
|
|
|
(7,701,759
|
)
|
|
|
9,672,594
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surprise Lake Village
|
|
Milton, WA
|
|
1986
|
|
|
338
|
|
|
|
4,162,543
|
|
|
|
21,995,958
|
|
|
|
-
|
|
|
|
167,483
|
|
|
|
4,162,543
|
|
|
|
22,163,441
|
|
|
|
26,325,984
|
|
|
|
(2,484,576
|
)
|
|
|
23,841,408
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sycamore Creek
|
|
Scottsdale, AZ
|
|
1984
|
|
|
350
|
|
|
|
3,152,000
|
|
|
|
19,083,727
|
|
|
|
-
|
|
|
|
3,055,695
|
|
|
|
3,152,000
|
|
|
|
22,139,422
|
|
|
|
25,291,422
|
|
|
|
(10,946,251
|
)
|
|
|
14,345,171
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tanasbourne Terrace
|
|
Hillsboro, OR
|
|
1986-1989
|
|
|
373
|
|
|
|
1,876,700
|
|
|
|
16,891,205
|
|
|
|
-
|
|
|
|
3,764,711
|
|
|
|
1,876,700
|
|
|
|
20,655,916
|
|
|
|
22,532,616
|
|
|
|
(12,425,399
|
)
|
|
|
10,107,217
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Square
|
|
Cambridge, MA (G)
|
|
2008/2009
|
|
|
482
|
|
|
|
27,812,384
|
|
|
|
228,734,105
|
|
|
|
-
|
|
|
|
567,932
|
|
|
|
27,812,384
|
|
|
|
229,302,037
|
|
|
|
257,114,421
|
|
|
|
(15,770,134
|
)
|
|
|
241,344,287
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tortuga Bay
|
|
Orlando, FL
|
|
2004
|
|
|
314
|
|
|
|
6,280,000
|
|
|
|
32,121,779
|
|
|
|
-
|
|
|
|
985,669
|
|
|
|
6,280,000
|
|
|
|
33,107,448
|
|
|
|
39,387,448
|
|
|
|
(7,923,623
|
)
|
|
|
31,463,825
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Toscana
|
|
Irvine, CA
|
|
1991/1993
|
|
|
563
|
|
|
|
39,410,000
|
|
|
|
50,806,072
|
|
|
|
-
|
|
|
|
6,395,983
|
|
|
|
39,410,000
|
|
|
|
57,202,055
|
|
|
|
96,612,055
|
|
|
|
(21,654,115
|
)
|
|
|
74,957,940
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Townes at Herndon
|
|
Herndon, VA
|
|
2002
|
|
|
218
|
|
|
|
10,900,000
|
|
|
|
49,216,125
|
|
|
|
-
|
|
|
|
576,648
|
|
|
|
10,900,000
|
|
|
|
49,792,773
|
|
|
|
60,692,773
|
|
|
|
(10,492,949
|
)
|
|
|
50,199,824
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trump Place, 140 Riverside
|
|
New York, NY (G)
|
|
2003
|
|
|
354
|
|
|
|
103,539,100
|
|
|
|
94,082,725
|
|
|
|
-
|
|
|
|
1,245,121
|
|
|
|
103,539,100
|
|
|
|
95,327,846
|
|
|
|
198,866,946
|
|
|
|
(20,098,341
|
)
|
|
|
178,768,605
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trump Place, 160 Riverside
|
|
New York, NY (G)
|
|
2001
|
|
|
455
|
|
|
|
139,933,500
|
|
|
|
190,964,745
|
|
|
|
-
|
|
|
|
4,193,547
|
|
|
|
139,933,500
|
|
|
|
195,158,292
|
|
|
|
335,091,792
|
|
|
|
(39,008,991
|
)
|
|
|
296,082,801
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trump Place, 180 Riverside
|
|
New York, NY (G)
|
|
1998
|
|
|
516
|
|
|
|
144,968,250
|
|
|
|
138,346,681
|
|
|
|
-
|
|
|
|
5,245,129
|
|
|
|
144,968,250
|
|
|
|
143,591,810
|
|
|
|
288,560,060
|
|
|
|
(30,420,203
|
)
|
|
|
258,139,857
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Uwajimaya Village
|
|
Seattle, WA
|
|
2002
|
|
|
176
|
|
|
|
8,800,000
|
|
|
|
22,188,288
|
|
|
|
-
|
|
|
|
231,285
|
|
|
|
8,800,000
|
|
|
|
22,419,573
|
|
|
|
31,219,573
|
|
|
|
(5,828,856
|
)
|
|
|
25,390,717
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valencia Plantation
|
|
Orlando, FL
|
|
1990
|
|
|
194
|
|
|
|
873,000
|
|
|
|
12,819,377
|
|
|
|
-
|
|
|
|
2,124,405
|
|
|
|
873,000
|
|
|
|
14,943,782
|
|
|
|
15,816,782
|
|
|
|
(6,429,174
|
)
|
|
|
9,387,608
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vantage Pointe
|
|
San Diego, CA (G)
|
|
2009
|
|
|
679
|
|
|
|
9,403,960
|
|
|
|
190,596,040
|
|
|
|
-
|
|
|
|
878,314
|
|
|
|
9,403,960
|
|
|
|
191,474,354
|
|
|
|
200,878,314
|
|
|
|
(2,779,752
|
)
|
|
|
198,098,562
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Versailles (K-Town)
|
|
Los Angeles, CA
|
|
2008
|
|
|
225
|
|
|
|
10,590,975
|
|
|
|
44,409,025
|
|
|
|
-
|
|
|
|
17,858
|
|
|
|
10,590,975
|
|
|
|
44,426,883
|
|
|
|
55,017,858
|
|
|
|
(2,028,003
|
)
|
|
|
52,989,855
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Victor on Venice
|
|
Los Angeles, CA (G)
|
|
2006
|
|
|
115
|
|
|
|
10,350,000
|
|
|
|
35,433,437
|
|
|
|
-
|
|
|
|
105,588
|
|
|
|
10,350,000
|
|
|
|
35,539,025
|
|
|
|
45,889,025
|
|
|
|
(6,273,594
|
)
|
|
|
39,615,431
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Villa Encanto
|
|
Phoenix, AZ
|
|
1983
|
|
|
385
|
|
|
|
2,884,447
|
|
|
|
22,197,363
|
|
|
|
-
|
|
|
|
3,530,421
|
|
|
|
2,884,447
|
|
|
|
25,727,784
|
|
|
|
28,612,231
|
|
|
|
(12,649,439
|
)
|
|
|
15,962,792
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Villa Solana
|
|
Laguna Hills, CA
|
|
1984
|
|
|
272
|
|
|
|
1,665,100
|
|
|
|
14,985,678
|
|
|
|
-
|
|
|
|
6,271,253
|
|
|
|
1,665,100
|
|
|
|
21,256,931
|
|
|
|
22,922,031
|
|
|
|
(12,286,928
|
)
|
|
|
10,635,103
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Village at Bear Creek
|
|
Lakewood, CO
|
|
1987
|
|
|
472
|
|
|
|
4,519,700
|
|
|
|
40,676,390
|
|
|
|
-
|
|
|
|
4,115,836
|
|
|
|
4,519,700
|
|
|
|
44,792,226
|
|
|
|
49,311,926
|
|
|
|
(21,310,226
|
)
|
|
|
28,001,700
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vista Del Largo
|
|
Mission Viejo, CA
|
|
1986-1988
|
|
|
608
|
|
|
|
4,525,800
|
|
|
|
40,736,293
|
|
|
|
-
|
|
|
|
10,948,915
|
|
|
|
4,525,800
|
|
|
|
51,685,208
|
|
|
|
56,211,008
|
|
|
|
(30,191,450
|
)
|
|
|
26,019,558
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vista Grove
|
|
Mesa, AZ
|
|
1997/1998
|
|
|
224
|
|
|
|
1,341,796
|
|
|
|
12,157,045
|
|
|
|
-
|
|
|
|
1,295,291
|
|
|
|
1,341,796
|
|
|
|
13,452,336
|
|
|
|
14,794,132
|
|
|
|
(6,225,002
|
)
|
|
|
8,569,130
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vista Montana Residential & Townhomes
|
|
San Jose, CA
|
|
(F)
|
|
|
-
|
|
|
|
51,000,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
51,000,000
|
|
|
|
-
|
|
|
|
51,000,000
|
|
|
|
-
|
|
|
|
51,000,000
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vista on Courthouse
|
|
Arlington, VA
|
|
2008
|
|
|
220
|
|
|
|
15,550,260
|
|
|
|
69,449,740
|
|
|
|
-
|
|
|
|
86,777
|
|
|
|
15,550,260
|
|
|
|
69,536,517
|
|
|
|
85,086,777
|
|
|
|
(5,267,387
|
)
|
|
|
79,819,390
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Waterford at Deerwood
|
|
Jacksonville, FL
|
|
1985
|
|
|
248
|
|
|
|
1,496,913
|
|
|
|
10,659,702
|
|
|
|
-
|
|
|
|
3,584,784
|
|
|
|
1,496,913
|
|
|
|
14,244,486
|
|
|
|
15,741,399
|
|
|
|
(6,711,046
|
)
|
|
|
9,030,353
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Waterford at Orange Park
|
|
Orange Park, FL
|
|
1986
|
|
|
280
|
|
|
|
1,960,000
|
|
|
|
12,098,784
|
|
|
|
-
|
|
|
|
2,967,016
|
|
|
|
1,960,000
|
|
|
|
15,065,800
|
|
|
|
17,025,800
|
|
|
|
(7,417,680
|
)
|
|
|
9,608,120
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Waterford Place (CO)
|
|
Thornton, CO
|
|
1998
|
|
|
336
|
|
|
|
5,040,000
|
|
|
|
29,946,419
|
|
|
|
-
|
|
|
|
1,310,833
|
|
|
|
5,040,000
|
|
|
|
31,257,252
|
|
|
|
36,297,252
|
|
|
|
(9,793,049
|
)
|
|
|
26,504,203
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Waterside
|
|
Reston, VA
|
|
1984
|
|
|
276
|
|
|
|
20,700,000
|
|
|
|
27,474,388
|
|
|
|
-
|
|
|
|
7,638,031
|
|
|
|
20,700,000
|
|
|
|
35,112,419
|
|
|
|
55,812,419
|
|
|
|
(9,030,796
|
)
|
|
|
46,781,623
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Webster Green
|
|
Needham, MA
|
|
1985
|
|
|
77
|
|
|
|
1,418,893
|
|
|
|
9,485,006
|
|
|
|
-
|
|
|
|
1,000,811
|
|
|
|
1,418,893
|
|
|
|
10,485,817
|
|
|
|
11,904,710
|
|
|
|
(3,879,487
|
)
|
|
|
8,025,223
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Welleby Lake Club
|
|
Sunrise, FL
|
|
1991
|
|
|
304
|
|
|
|
3,648,000
|
|
|
|
17,620,879
|
|
|
|
-
|
|
|
|
3,744,103
|
|
|
|
3,648,000
|
|
|
|
21,364,982
|
|
|
|
25,012,982
|
|
|
|
(9,435,056
|
)
|
|
|
15,577,926
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
West End Apartments (fka Emerson Place/CRP II)
|
|
Boston, MA (G)
|
|
2008
|
|
|
310
|
|
|
|
469,546
|
|
|
|
163,123,022
|
|
|
|
-
|
|
|
|
358,369
|
|
|
|
469,546
|
|
|
|
163,481,391
|
|
|
|
163,950,937
|
|
|
|
(15,522,448
|
)
|
|
|
148,428,489
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Westerly at Worldgate
|
|
Herndon, VA
|
|
1995
|
|
|
320
|
|
|
|
14,568,000
|
|
|
|
43,620,057
|
|
|
|
-
|
|
|
|
1,062,632
|
|
|
|
14,568,000
|
|
|
|
44,682,689
|
|
|
|
59,250,689
|
|
|
|
(6,046,012
|
)
|
|
|
53,204,677
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Westfield Village
|
|
Centerville, VA
|
|
1988
|
|
|
228
|
|
|
|
7,000,000
|
|
|
|
23,245,834
|
|
|
|
-
|
|
|
|
4,574,728
|
|
|
|
7,000,000
|
|
|
|
27,820,562
|
|
|
|
34,820,562
|
|
|
|
(8,289,817
|
)
|
|
|
26,530,745
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Westridge
|
|
Tacoma, WA
|
|
1987 -1991
|
|
|
714
|
|
|
|
3,501,900
|
|
|
|
31,506,082
|
|
|
|
-
|
|
|
|
6,551,697
|
|
|
|
3,501,900
|
|
|
|
38,057,779
|
|
|
|
41,559,679
|
|
|
|
(19,228,990
|
)
|
|
|
22,330,689
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Westgate Pasadena Condos
|
|
Pasadena, CA
|
|
(F)
|
|
|
-
|
|
|
|
29,977,725
|
|
|
|
16,130,079
|
|
|
|
-
|
|
|
|
-
|
|
|
|
29,977,725
|
|
|
|
16,130,079
|
|
|
|
46,107,804
|
|
|
|
-
|
|
|
|
46,107,804
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Westgate Pasadena and Green
|
|
Pasadena, CA
|
|
(F)
|
|
|
-
|
|
|
|
-
|
|
|
|
390,813
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
390,813
|
|
|
|
390,813
|
|
|
|
-
|
|
|
|
390,813
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Westside Villas I
|
|
Los Angeles, CA
|
|
1999
|
|
|
21
|
|
|
|
1,785,000
|
|
|
|
3,233,254
|
|
|
|
-
|
|
|
|
256,198
|
|
|
|
1,785,000
|
|
|
|
3,489,452
|
|
|
|
5,274,452
|
|
|
|
(1,324,557
|
)
|
|
|
3,949,895
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Westside Villas II
|
|
Los Angeles, CA
|
|
1999
|
|
|
23
|
|
|
|
1,955,000
|
|
|
|
3,541,435
|
|
|
|
-
|
|
|
|
139,793
|
|
|
|
1,955,000
|
|
|
|
3,681,228
|
|
|
|
5,636,228
|
|
|
|
(1,307,577
|
)
|
|
|
4,328,651
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Westside Villas III
|
|
Los Angeles, CA
|
|
1999
|
|
|
36
|
|
|
|
3,060,000
|
|
|
|
5,538,871
|
|
|
|
-
|
|
|
|
203,576
|
|
|
|
3,060,000
|
|
|
|
5,742,447
|
|
|
|
8,802,447
|
|
|
|
(2,045,237
|
)
|
|
|
6,757,210
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Westside Villas IV
|
|
Los Angeles, CA
|
|
1999
|
|
|
36
|
|
|
|
3,060,000
|
|
|
|
5,539,390
|
|
|
|
-
|
|
|
|
212,024
|
|
|
|
3,060,000
|
|
|
|
5,751,414
|
|
|
|
8,811,414
|
|
|
|
(2,039,061
|
)
|
|
|
6,772,353
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Westside Villas V
|
|
Los Angeles, CA
|
|
1999
|
|
|
60
|
|
|
|
5,100,000
|
|
|
|
9,224,485
|
|
|
|
-
|
|
|
|
368,292
|
|
|
|
5,100,000
|
|
|
|
9,592,777
|
|
|
|
14,692,777
|
|
|
|
(3,414,998
|
)
|
|
|
11,277,779
|
|
|
|
-
|
S-9
EQUITY
RESIDENTIAL
Schedule III - Real Estate and Accumulated
Depreciation
December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Initial Cost to
|
|
|
|
|
|
Acquisition
|
|
|
|
|
|
at Close of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
|
|
|
Company
|
|
|
|
|
|
(Improvements, net) (E)
|
|
|
|
|
|
Period 12/31/10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of
|
|
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Accumulated
|
|
|
Investment in Real
|
|
|
|
Apartment Name
|
|
Location
|
|
Construction
|
|
Units (H)
|
|
|
Land
|
|
|
Fixtures
|
|
|
Land
|
|
|
Fixtures
|
|
|
Land
|
|
|
Fixtures (A)
|
|
|
Total (B)
|
|
|
Depreciation (C)
|
|
|
Estate, Net at 12/31/10 (B)
|
|
|
Encumbrances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Westside Villas VI
|
|
Los Angeles, CA
|
|
1989
|
|
|
18
|
|
|
|
1,530,000
|
|
|
|
3,023,523
|
|
|
|
-
|
|
|
|
231,964
|
|
|
|
1,530,000
|
|
|
|
3,255,487
|
|
|
|
4,785,487
|
|
|
|
(1,182,625
|
)
|
|
|
3,602,862
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Westside Villas VII
|
|
Los Angeles, CA
|
|
2001
|
|
|
53
|
|
|
|
4,505,000
|
|
|
|
10,758,900
|
|
|
|
-
|
|
|
|
361,135
|
|
|
|
4,505,000
|
|
|
|
11,120,035
|
|
|
|
15,625,035
|
|
|
|
(3,377,984
|
)
|
|
|
12,247,051
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wimberly at Deerwood
|
|
Jacksonville, FL
|
|
2000
|
|
|
322
|
|
|
|
8,000,000
|
|
|
|
30,057,214
|
|
|
|
-
|
|
|
|
1,524,972
|
|
|
|
8,000,000
|
|
|
|
31,582,186
|
|
|
|
39,582,186
|
|
|
|
(7,060,939
|
)
|
|
|
32,521,247
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Winchester Park
|
|
Riverside, RI
|
|
1972
|
|
|
416
|
|
|
|
2,822,618
|
|
|
|
18,868,626
|
|
|
|
-
|
|
|
|
6,221,418
|
|
|
|
2,822,618
|
|
|
|
25,090,044
|
|
|
|
27,912,662
|
|
|
|
(10,446,769
|
)
|
|
|
17,465,893
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Winchester Wood
|
|
Riverside, RI
|
|
1989
|
|
|
62
|
|
|
|
683,215
|
|
|
|
4,567,154
|
|
|
|
-
|
|
|
|
798,960
|
|
|
|
683,215
|
|
|
|
5,366,114
|
|
|
|
6,049,329
|
|
|
|
(2,013,478
|
)
|
|
|
4,035,851
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Windsor at Fair Lakes
|
|
Fairfax, VA
|
|
1988
|
|
|
250
|
|
|
|
10,000,000
|
|
|
|
28,587,109
|
|
|
|
-
|
|
|
|
5,870,235
|
|
|
|
10,000,000
|
|
|
|
34,457,344
|
|
|
|
44,457,344
|
|
|
|
(9,463,894
|
)
|
|
|
34,993,450
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Winston, The (FL)
|
|
Pembroke Pines, FL
|
|
2001/2003
|
|
|
464
|
|
|
|
18,561,000
|
|
|
|
49,527,569
|
|
|
|
-
|
|
|
|
1,617,923
|
|
|
|
18,561,000
|
|
|
|
51,145,492
|
|
|
|
69,706,492
|
|
|
|
(8,441,759
|
)
|
|
|
61,264,733
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wood Creek (CA)
|
|
Pleasant Hill, CA
|
|
1987
|
|
|
256
|
|
|
|
9,729,900
|
|
|
|
23,009,768
|
|
|
|
-
|
|
|
|
4,472,213
|
|
|
|
9,729,900
|
|
|
|
27,481,981
|
|
|
|
37,211,881
|
|
|
|
(12,645,672
|
)
|
|
|
24,566,209
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Woodbridge (CT)
|
|
Newington, CT
|
|
1968
|
|
|
73
|
|
|
|
498,377
|
|
|
|
3,331,548
|
|
|
|
-
|
|
|
|
862,784
|
|
|
|
498,377
|
|
|
|
4,194,332
|
|
|
|
4,692,709
|
|
|
|
(1,635,504
|
)
|
|
|
3,057,205
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Woodleaf
|
|
Campbell, CA
|
|
1984
|
|
|
178
|
|
|
|
8,550,600
|
|
|
|
16,988,183
|
|
|
|
-
|
|
|
|
1,418,889
|
|
|
|
8,550,600
|
|
|
|
18,407,072
|
|
|
|
26,957,672
|
|
|
|
(8,148,131
|
)
|
|
|
18,809,541
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Woodside
|
|
Lorton, VA
|
|
1987
|
|
|
252
|
|
|
|
1,326,000
|
|
|
|
12,510,903
|
|
|
|
-
|
|
|
|
5,846,332
|
|
|
|
1,326,000
|
|
|
|
18,357,235
|
|
|
|
19,683,235
|
|
|
|
(10,821,201
|
)
|
|
|
8,862,034
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management Business
|
|
Chicago, IL
|
|
(D)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
79,865,530
|
|
|
|
-
|
|
|
|
79,865,530
|
|
|
|
79,865,530
|
|
|
|
(61,109,987
|
)
|
|
|
18,755,543
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Partnership
|
|
Chicago, IL
|
|
(F)
|
|
|
-
|
|
|
|
-
|
|
|
|
804,852
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
804,852
|
|
|
|
804,852
|
|
|
|
-
|
|
|
|
804,852
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQR Wholly Owned Unencumbered
|
|
|
|
|
|
|
80,239
|
|
|
|
2,929,343,369
|
|
|
|
8,675,464,206
|
|
|
|
-
|
|
|
|
950,595,062
|
|
|
|
2,929,343,369
|
|
|
|
9,626,059,268
|
|
|
|
12,555,402,637
|
|
|
|
(2,847,912,228
|
)
|
|
|
9,707,490,409
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQR Wholly Owned Encumbered:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
929 House
|
|
Cambridge, MA (G)
|
|
1975
|
|
|
127
|
|
|
|
3,252,993
|
|
|
|
21,745,595
|
|
|
|
-
|
|
|
|
4,361,591
|
|
|
|
3,252,993
|
|
|
|
26,107,186
|
|
|
|
29,360,179
|
|
|
|
(9,147,568
|
)
|
|
|
20,212,611
|
|
|
|
3,059,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Academy Village
|
|
North Hollywood, CA
|
|
1989
|
|
|
248
|
|
|
|
25,000,000
|
|
|
|
23,593,194
|
|
|
|
-
|
|
|
|
5,642,404
|
|
|
|
25,000,000
|
|
|
|
29,235,598
|
|
|
|
54,235,598
|
|
|
|
(8,614,636
|
)
|
|
|
45,620,962
|
|
|
|
20,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acappella
|
|
Pasadena, CA
|
|
2002
|
|
|
143
|
|
|
|
5,839,548
|
|
|
|
29,360,452
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,839,548
|
|
|
|
29,360,452
|
|
|
|
35,200,000
|
|
|
|
-
|
|
|
|
35,200,000
|
|
|
|
20,886,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acton Courtyard
|
|
Berkeley, CA (G)
|
|
2003
|
|
|
71
|
|
|
|
5,550,000
|
|
|
|
15,785,509
|
|
|
|
-
|
|
|
|
58,895
|
|
|
|
5,550,000
|
|
|
|
15,844,404
|
|
|
|
21,394,404
|
|
|
|
(2,806,816
|
)
|
|
|
18,587,588
|
|
|
|
9,920,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alborada
|
|
Fremont, CA
|
|
1999
|
|
|
442
|
|
|
|
24,310,000
|
|
|
|
59,214,129
|
|
|
|
-
|
|
|
|
2,251,542
|
|
|
|
24,310,000
|
|
|
|
61,465,671
|
|
|
|
85,775,671
|
|
|
|
(23,124,504
|
)
|
|
|
62,651,167
|
|
|
|
(J)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alexander on Ponce
|
|
Atlanta, GA
|
|
2003
|
|
|
330
|
|
|
|
9,900,000
|
|
|
|
35,819,022
|
|
|
|
-
|
|
|
|
1,541,765
|
|
|
|
9,900,000
|
|
|
|
37,360,787
|
|
|
|
47,260,787
|
|
|
|
(8,232,441
|
)
|
|
|
39,028,346
|
|
|
|
28,880,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amberton
|
|
Manassas, VA
|
|
1986
|
|
|
190
|
|
|
|
900,600
|
|
|
|
11,921,815
|
|
|
|
-
|
|
|
|
2,406,495
|
|
|
|
900,600
|
|
|
|
14,328,310
|
|
|
|
15,228,910
|
|
|
|
(7,347,971
|
)
|
|
|
7,880,939
|
|
|
|
10,705,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Arbor Terrace
|
|
Sunnyvale, CA
|
|
1979
|
|
|
175
|
|
|
|
9,057,300
|
|
|
|
18,483,642
|
|
|
|
-
|
|
|
|
2,226,056
|
|
|
|
9,057,300
|
|
|
|
20,709,698
|
|
|
|
29,766,998
|
|
|
|
(9,184,819
|
)
|
|
|
20,582,179
|
|
|
|
(L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Arboretum (MA)
|
|
Canton, MA
|
|
1989
|
|
|
156
|
|
|
|
4,685,900
|
|
|
|
10,992,751
|
|
|
|
-
|
|
|
|
1,798,509
|
|
|
|
4,685,900
|
|
|
|
12,791,260
|
|
|
|
17,477,160
|
|
|
|
(6,000,939
|
)
|
|
|
11,476,221
|
|
|
|
(I)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Artech Building
|
|
Berkeley, CA (G)
|
|
2002
|
|
|
21
|
|
|
|
1,642,000
|
|
|
|
9,152,518
|
|
|
|
-
|
|
|
|
85,975
|
|
|
|
1,642,000
|
|
|
|
9,238,493
|
|
|
|
10,880,493
|
|
|
|
(1,437,190
|
)
|
|
|
9,443,303
|
|
|
|
3,200,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Artisan Square
|
|
Northridge, CA
|
|
2002
|
|
|
140
|
|
|
|
7,000,000
|
|
|
|
20,537,359
|
|
|
|
-
|
|
|
|
687,091
|
|
|
|
7,000,000
|
|
|
|
21,224,450
|
|
|
|
28,224,450
|
|
|
|
(6,239,094
|
)
|
|
|
21,985,356
|
|
|
|
22,779,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Avanti
|
|
Anaheim, CA
|
|
1987
|
|
|
162
|
|
|
|
12,960,000
|
|
|
|
18,497,683
|
|
|
|
-
|
|
|
|
1,018,387
|
|
|
|
12,960,000
|
|
|
|
19,516,070
|
|
|
|
32,476,070
|
|
|
|
(4,132,155
|
)
|
|
|
28,343,915
|
|
|
|
19,850,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bachenheimer Building
|
|
Berkeley, CA (G)
|
|
2004
|
|
|
44
|
|
|
|
3,439,000
|
|
|
|
13,866,379
|
|
|
|
-
|
|
|
|
42,240
|
|
|
|
3,439,000
|
|
|
|
13,908,619
|
|
|
|
17,347,619
|
|
|
|
(2,287,866
|
)
|
|
|
15,059,753
|
|
|
|
8,585,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bella Vista Apartments at Boca Del Mar
|
|
Boca Raton, FL
|
|
1985
|
|
|
392
|
|
|
|
11,760,000
|
|
|
|
20,190,252
|
|
|
|
-
|
|
|
|
13,328,327
|
|
|
|
11,760,000
|
|
|
|
33,518,579
|
|
|
|
45,278,579
|
|
|
|
(13,414,974
|
)
|
|
|
31,863,605
|
|
|
|
26,134,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bellagio Apartment Homes
|
|
Scottsdale, AZ
|
|
1995
|
|
|
202
|
|
|
|
2,626,000
|
|
|
|
16,025,041
|
|
|
|
-
|
|
|
|
953,738
|
|
|
|
2,626,000
|
|
|
|
16,978,779
|
|
|
|
19,604,779
|
|
|
|
(4,541,961
|
)
|
|
|
15,062,818
|
|
|
|
(L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Berkeleyan
|
|
Berkeley, CA (G)
|
|
1998
|
|
|
56
|
|
|
|
4,377,000
|
|
|
|
16,022,110
|
|
|
|
-
|
|
|
|
264,145
|
|
|
|
4,377,000
|
|
|
|
16,286,255
|
|
|
|
20,663,255
|
|
|
|
(2,735,637
|
)
|
|
|
17,927,618
|
|
|
|
8,290,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bradley Park
|
|
Puyallup, WA
|
|
1999
|
|
|
155
|
|
|
|
3,813,000
|
|
|
|
18,313,645
|
|
|
|
-
|
|
|
|
388,646
|
|
|
|
3,813,000
|
|
|
|
18,702,291
|
|
|
|
22,515,291
|
|
|
|
(4,995,318
|
)
|
|
|
17,519,973
|
|
|
|
11,143,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Briarwood (CA)
|
|
Sunnyvale, CA
|
|
1985
|
|
|
192
|
|
|
|
9,991,500
|
|
|
|
22,247,278
|
|
|
|
-
|
|
|
|
1,434,998
|
|
|
|
9,991,500
|
|
|
|
23,682,276
|
|
|
|
33,673,776
|
|
|
|
(10,266,159
|
)
|
|
|
23,407,617
|
|
|
|
12,800,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brookside (CO)
|
|
Boulder, CO
|
|
1993
|
|
|
144
|
|
|
|
3,600,400
|
|
|
|
10,211,159
|
|
|
|
-
|
|
|
|
1,520,927
|
|
|
|
3,600,400
|
|
|
|
11,732,086
|
|
|
|
15,332,486
|
|
|
|
(5,075,082
|
)
|
|
|
10,257,404
|
|
|
|
(L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canterbury
|
|
Germantown, MD (I)
|
|
1986
|
|
|
544
|
|
|
|
2,781,300
|
|
|
|
32,942,531
|
|
|
|
-
|
|
|
|
13,914,331
|
|
|
|
2,781,300
|
|
|
|
46,856,862
|
|
|
|
49,638,162
|
|
|
|
(24,687,359
|
)
|
|
|
24,950,803
|
|
|
|
31,680,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cape House I
|
|
Jacksonville, FL
|
|
1998
|
|
|
240
|
|
|
|
4,800,000
|
|
|
|
22,484,240
|
|
|
|
-
|
|
|
|
426,982
|
|
|
|
4,800,000
|
|
|
|
22,911,222
|
|
|
|
27,711,222
|
|
|
|
(4,507,742
|
)
|
|
|
23,203,480
|
|
|
|
13,748,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cape House II
|
|
Jacksonville, FL
|
|
1998
|
|
|
240
|
|
|
|
4,800,000
|
|
|
|
22,229,836
|
|
|
|
-
|
|
|
|
1,689,141
|
|
|
|
4,800,000
|
|
|
|
23,918,977
|
|
|
|
28,718,977
|
|
|
|
(4,773,188
|
)
|
|
|
23,945,789
|
|
|
|
13,302,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carmel Terrace
|
|
San Diego, CA
|
|
1988-1989
|
|
|
384
|
|
|
|
2,288,300
|
|
|
|
20,596,281
|
|
|
|
-
|
|
|
|
9,979,210
|
|
|
|
2,288,300
|
|
|
|
30,575,491
|
|
|
|
32,863,791
|
|
|
|
(16,480,043
|
)
|
|
|
16,383,748
|
|
|
|
(K)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cascade at Landmark
|
|
Alexandria, VA
|
|
1990
|
|
|
277
|
|
|
|
3,603,400
|
|
|
|
19,657,554
|
|
|
|
-
|
|
|
|
6,814,326
|
|
|
|
3,603,400
|
|
|
|
26,471,880
|
|
|
|
30,075,280
|
|
|
|
(12,856,433
|
)
|
|
|
17,218,847
|
|
|
|
31,921,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Centennial Court
|
|
Seattle, WA (G)
|
|
2001
|
|
|
187
|
|
|
|
3,800,000
|
|
|
|
21,280,039
|
|
|
|
-
|
|
|
|
362,829
|
|
|
|
3,800,000
|
|
|
|
21,642,868
|
|
|
|
25,442,868
|
|
|
|
(5,029,405
|
)
|
|
|
20,413,463
|
|
|
|
15,557,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Centennial Tower
|
|
Seattle, WA (G)
|
|
1991
|
|
|
221
|
|
|
|
5,900,000
|
|
|
|
48,800,339
|
|
|
|
-
|
|
|
|
2,046,434
|
|
|
|
5,900,000
|
|
|
|
50,846,773
|
|
|
|
56,746,773
|
|
|
|
(11,438,821
|
)
|
|
|
45,307,952
|
|
|
|
25,300,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chelsea Square
|
|
Redmond, WA
|
|
1991
|
|
|
113
|
|
|
|
3,397,100
|
|
|
|
9,289,074
|
|
|
|
-
|
|
|
|
1,388,566
|
|
|
|
3,397,100
|
|
|
|
10,677,640
|
|
|
|
14,074,740
|
|
|
|
(4,562,296
|
)
|
|
|
9,512,444
|
|
|
|
(L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Church Corner
|
|
Cambridge, MA (G)
|
|
1987
|
|
|
85
|
|
|
|
5,220,000
|
|
|
|
16,744,643
|
|
|
|
-
|
|
|
|
1,179,544
|
|
|
|
5,220,000
|
|
|
|
17,924,187
|
|
|
|
23,144,187
|
|
|
|
(4,248,578
|
)
|
|
|
18,895,609
|
|
|
|
12,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cierra Crest
|
|
Denver, CO
|
|
1996
|
|
|
480
|
|
|
|
4,803,100
|
|
|
|
34,894,898
|
|
|
|
-
|
|
|
|
4,402,011
|
|
|
|
4,803,100
|
|
|
|
39,296,909
|
|
|
|
44,100,009
|
|
|
|
(18,210,852
|
)
|
|
|
25,889,157
|
|
|
|
(L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
City Pointe
|
|
Fullerton, CA (G)
|
|
2004
|
|
|
183
|
|
|
|
6,863,792
|
|
|
|
36,476,207
|
|
|
|
-
|
|
|
|
83,706
|
|
|
|
6,863,792
|
|
|
|
36,559,913
|
|
|
|
43,423,705
|
|
|
|
(2,707,002
|
)
|
|
|
40,716,703
|
|
|
|
23,503,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colorado Pointe
|
|
Denver, CO
|
|
2006
|
|
|
193
|
|
|
|
5,790,000
|
|
|
|
28,815,766
|
|
|
|
-
|
|
|
|
408,628
|
|
|
|
5,790,000
|
|
|
|
29,224,394
|
|
|
|
35,014,394
|
|
|
|
(6,452,888
|
)
|
|
|
28,561,506
|
|
|
|
(K)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conway Court
|
|
Roslindale, MA
|
|
1920
|
|
|
28
|
|
|
|
101,451
|
|
|
|
710,524
|
|
|
|
-
|
|
|
|
229,420
|
|
|
|
101,451
|
|
|
|
939,944
|
|
|
|
1,041,395
|
|
|
|
(395,244
|
)
|
|
|
646,151
|
|
|
|
260,117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper Canyon
|
|
Highlands Ranch, CO
|
|
1999
|
|
|
222
|
|
|
|
1,442,212
|
|
|
|
16,251,114
|
|
|
|
-
|
|
|
|
1,150,650
|
|
|
|
1,442,212
|
|
|
|
17,401,764
|
|
|
|
18,843,976
|
|
|
|
(7,322,122
|
)
|
|
|
11,521,854
|
|
|
|
(K)
|
S-10
EQUITY
RESIDENTIAL
Schedule III - Real Estate and Accumulated
Depreciation
December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Initial Cost to
|
|
|
|
|
|
Acquisition
|
|
|
|
|
|
at Close of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
|
|
|
Company
|
|
|
|
|
|
(Improvements, net) (E)
|
|
|
|
|
|
Period 12/31/10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of
|
|
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Accumulated
|
|
|
Investment in Real
|
|
|
|
Apartment Name
|
|
Location
|
|
Construction
|
|
Units (H)
|
|
|
Land
|
|
|
Fixtures
|
|
|
Land
|
|
|
Fixtures
|
|
|
Land
|
|
|
Fixtures (A)
|
|
|
Total (B)
|
|
|
Depreciation (C)
|
|
|
Estate, Net at 12/31/10 (B)
|
|
|
Encumbrances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Country Brook
|
|
Chandler, AZ
|
|
1986-1996
|
|
|
396
|
|
|
|
1,505,219
|
|
|
|
29,542,535
|
|
|
|
-
|
|
|
|
3,653,889
|
|
|
|
1,505,219
|
|
|
|
33,196,424
|
|
|
|
34,701,643
|
|
|
|
(15,485,956
|
)
|
|
|
19,215,687
|
|
|
|
(K)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Country Club Lakes
|
|
Jacksonville, FL
|
|
1997
|
|
|
555
|
|
|
|
15,000,000
|
|
|
|
41,055,786
|
|
|
|
-
|
|
|
|
4,105,750
|
|
|
|
15,000,000
|
|
|
|
45,161,536
|
|
|
|
60,161,536
|
|
|
|
(11,315,474
|
)
|
|
|
48,846,062
|
|
|
|
32,097,598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creekside (San Mateo)
|
|
San Mateo, CA
|
|
1985
|
|
|
192
|
|
|
|
9,606,600
|
|
|
|
21,193,232
|
|
|
|
-
|
|
|
|
2,040,890
|
|
|
|
9,606,600
|
|
|
|
23,234,122
|
|
|
|
32,840,722
|
|
|
|
(9,971,049
|
)
|
|
|
22,869,673
|
|
|
|
(L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crescent at Cherry Creek
|
|
Denver, CO
|
|
1994
|
|
|
216
|
|
|
|
2,594,000
|
|
|
|
15,149,470
|
|
|
|
-
|
|
|
|
2,620,271
|
|
|
|
2,594,000
|
|
|
|
17,769,741
|
|
|
|
20,363,741
|
|
|
|
(8,074,935
|
)
|
|
|
12,288,806
|
|
|
|
(K)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deerwood (SD)
|
|
San Diego, CA
|
|
1990
|
|
|
316
|
|
|
|
2,082,095
|
|
|
|
18,739,815
|
|
|
|
-
|
|
|
|
13,007,845
|
|
|
|
2,082,095
|
|
|
|
31,747,660
|
|
|
|
33,829,755
|
|
|
|
(17,756,307
|
)
|
|
|
16,073,448
|
|
|
|
(K)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estates at Maitland Summit
|
|
Orlando, FL
|
|
1998
|
|
|
272
|
|
|
|
9,520,000
|
|
|
|
28,352,160
|
|
|
|
-
|
|
|
|
678,371
|
|
|
|
9,520,000
|
|
|
|
29,030,531
|
|
|
|
38,550,531
|
|
|
|
(7,308,841
|
)
|
|
|
31,241,690
|
|
|
|
(L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estates at Tanglewood
|
|
Westminster, CO
|
|
2003
|
|
|
504
|
|
|
|
7,560,000
|
|
|
|
51,256,538
|
|
|
|
-
|
|
|
|
1,850,357
|
|
|
|
7,560,000
|
|
|
|
53,106,895
|
|
|
|
60,666,895
|
|
|
|
(12,304,895
|
)
|
|
|
48,362,000
|
|
|
|
(J)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fairfield
|
|
Stamford, CT (G)
|
|
1996
|
|
|
263
|
|
|
|
6,510,200
|
|
|
|
39,690,120
|
|
|
|
-
|
|
|
|
5,118,992
|
|
|
|
6,510,200
|
|
|
|
44,809,112
|
|
|
|
51,319,312
|
|
|
|
(19,894,444
|
)
|
|
|
31,424,868
|
|
|
|
34,595,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fine Arts Building
|
|
Berkeley, CA (G)
|
|
2004
|
|
|
100
|
|
|
|
7,817,000
|
|
|
|
26,462,772
|
|
|
|
-
|
|
|
|
58,091
|
|
|
|
7,817,000
|
|
|
|
26,520,863
|
|
|
|
34,337,863
|
|
|
|
(4,506,280
|
)
|
|
|
29,831,583
|
|
|
|
16,215,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaia Building
|
|
Berkeley, CA (G)
|
|
2000
|
|
|
91
|
|
|
|
7,113,000
|
|
|
|
25,623,826
|
|
|
|
-
|
|
|
|
117,077
|
|
|
|
7,113,000
|
|
|
|
25,740,903
|
|
|
|
32,853,903
|
|
|
|
(4,345,971
|
)
|
|
|
28,507,932
|
|
|
|
14,630,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gateway at Malden Center
|
|
Malden, MA (G)
|
|
1988
|
|
|
203
|
|
|
|
9,209,780
|
|
|
|
25,722,666
|
|
|
|
-
|
|
|
|
7,947,656
|
|
|
|
9,209,780
|
|
|
|
33,670,322
|
|
|
|
42,880,102
|
|
|
|
(10,662,848
|
)
|
|
|
32,217,254
|
|
|
|
14,970,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Geary Court Yard
|
|
San Francisco, CA
|
|
1990
|
|
|
164
|
|
|
|
1,722,400
|
|
|
|
15,471,429
|
|
|
|
-
|
|
|
|
2,040,242
|
|
|
|
1,722,400
|
|
|
|
17,511,671
|
|
|
|
19,234,071
|
|
|
|
(8,300,938
|
)
|
|
|
10,933,133
|
|
|
|
18,893,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Glen Meadow
|
|
Franklin, MA
|
|
1971
|
|
|
288
|
|
|
|
2,339,330
|
|
|
|
16,133,588
|
|
|
|
-
|
|
|
|
3,534,410
|
|
|
|
2,339,330
|
|
|
|
19,667,998
|
|
|
|
22,007,328
|
|
|
|
(8,107,522
|
)
|
|
|
13,899,806
|
|
|
|
619,538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grandeville at River Place
|
|
Oviedo, FL
|
|
2002
|
|
|
280
|
|
|
|
6,000,000
|
|
|
|
23,114,693
|
|
|
|
-
|
|
|
|
1,520,490
|
|
|
|
6,000,000
|
|
|
|
24,635,183
|
|
|
|
30,635,183
|
|
|
|
(6,872,649
|
)
|
|
|
23,762,534
|
|
|
|
28,890,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greenhaven
|
|
Union City, CA
|
|
1983
|
|
|
250
|
|
|
|
7,507,000
|
|
|
|
15,210,399
|
|
|
|
-
|
|
|
|
2,970,066
|
|
|
|
7,507,000
|
|
|
|
18,180,465
|
|
|
|
25,687,465
|
|
|
|
(8,456,557
|
)
|
|
|
17,230,908
|
|
|
|
10,975,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greenhouse Frey Road
|
|
Kennesaw, GA
|
|
1985
|
|
|
489
|
|
|
|
2,467,200
|
|
|
|
22,187,443
|
|
|
|
-
|
|
|
|
4,922,373
|
|
|
|
2,467,200
|
|
|
|
27,109,816
|
|
|
|
29,577,016
|
|
|
|
(16,164,084
|
)
|
|
|
13,412,932
|
|
|
|
19,700,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greenwood Park
|
|
Centennial, CO
|
|
1994
|
|
|
291
|
|
|
|
4,365,000
|
|
|
|
38,372,440
|
|
|
|
-
|
|
|
|
1,136,402
|
|
|
|
4,365,000
|
|
|
|
39,508,842
|
|
|
|
43,873,842
|
|
|
|
(6,846,735
|
)
|
|
|
37,027,107
|
|
|
|
(L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greenwood Plaza
|
|
Centennial, CO
|
|
1996
|
|
|
266
|
|
|
|
3,990,000
|
|
|
|
35,846,708
|
|
|
|
-
|
|
|
|
1,658,135
|
|
|
|
3,990,000
|
|
|
|
37,504,843
|
|
|
|
41,494,843
|
|
|
|
(6,529,493
|
)
|
|
|
34,965,350
|
|
|
|
(L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harbor Steps
|
|
Seattle, WA (G)
|
|
2000
|
|
|
730
|
|
|
|
59,900,000
|
|
|
|
158,829,432
|
|
|
|
-
|
|
|
|
5,787,753
|
|
|
|
59,900,000
|
|
|
|
164,617,185
|
|
|
|
224,517,185
|
|
|
|
(34,944,472
|
)
|
|
|
189,572,713
|
|
|
|
125,926,373
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hathaway
|
|
Long Beach, CA
|
|
1987
|
|
|
385
|
|
|
|
2,512,500
|
|
|
|
22,611,912
|
|
|
|
-
|
|
|
|
6,365,675
|
|
|
|
2,512,500
|
|
|
|
28,977,587
|
|
|
|
31,490,087
|
|
|
|
(15,770,720
|
)
|
|
|
15,719,367
|
|
|
|
46,517,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heights on Capitol Hill
|
|
Seattle, WA (G)
|
|
2006
|
|
|
104
|
|
|
|
5,425,000
|
|
|
|
21,138,028
|
|
|
|
-
|
|
|
|
55,704
|
|
|
|
5,425,000
|
|
|
|
21,193,732
|
|
|
|
26,618,732
|
|
|
|
(3,965,879
|
)
|
|
|
22,652,853
|
|
|
|
19,320,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heritage at Stone Ridge
|
|
Burlington, MA
|
|
2005
|
|
|
180
|
|
|
|
10,800,000
|
|
|
|
31,808,335
|
|
|
|
-
|
|
|
|
607,280
|
|
|
|
10,800,000
|
|
|
|
32,415,615
|
|
|
|
43,215,615
|
|
|
|
(7,307,875
|
)
|
|
|
35,907,740
|
|
|
|
28,150,164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heronfield
|
|
Kirkland, WA
|
|
1990
|
|
|
202
|
|
|
|
9,245,000
|
|
|
|
27,018,110
|
|
|
|
-
|
|
|
|
1,212,853
|
|
|
|
9,245,000
|
|
|
|
28,230,963
|
|
|
|
37,475,963
|
|
|
|
(5,306,819
|
)
|
|
|
32,169,144
|
|
|
|
(K)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Highlands at Cherry Hill
|
|
Cherry Hills, NJ
|
|
2002
|
|
|
170
|
|
|
|
6,800,000
|
|
|
|
21,459,108
|
|
|
|
-
|
|
|
|
582,660
|
|
|
|
6,800,000
|
|
|
|
22,041,768
|
|
|
|
28,841,768
|
|
|
|
(4,883,071
|
)
|
|
|
23,958,697
|
|
|
|
14,947,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ivory Wood
|
|
Bothell, WA
|
|
2000
|
|
|
144
|
|
|
|
2,732,800
|
|
|
|
13,888,282
|
|
|
|
-
|
|
|
|
543,271
|
|
|
|
2,732,800
|
|
|
|
14,431,553
|
|
|
|
17,164,353
|
|
|
|
(3,798,957
|
)
|
|
|
13,365,396
|
|
|
|
8,020,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jaclen Towers
|
|
Beverly, MA
|
|
1976
|
|
|
100
|
|
|
|
437,072
|
|
|
|
2,921,735
|
|
|
|
-
|
|
|
|
1,125,390
|
|
|
|
437,072
|
|
|
|
4,047,125
|
|
|
|
4,484,197
|
|
|
|
(1,826,858
|
)
|
|
|
2,657,339
|
|
|
|
1,208,416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kelvin Court (fka Alta Pacific)
|
|
Irvine, CA
|
|
2008
|
|
|
132
|
|
|
|
10,752,145
|
|
|
|
34,628,114
|
|
|
|
-
|
|
|
|
11,381
|
|
|
|
10,752,145
|
|
|
|
34,639,495
|
|
|
|
45,391,640
|
|
|
|
(3,455,525
|
)
|
|
|
41,936,115
|
|
|
|
28,260,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La Terrazza at Colma Station
|
|
Colma, CA (G)
|
|
2005
|
|
|
153
|
|
|
|
-
|
|
|
|
41,251,043
|
|
|
|
-
|
|
|
|
458,671
|
|
|
|
-
|
|
|
|
41,709,714
|
|
|
|
41,709,714
|
|
|
|
(6,759,707
|
)
|
|
|
34,950,007
|
|
|
|
25,940,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaSalle
|
|
Beaverton, OR (G)
|
|
1998
|
|
|
554
|
|
|
|
7,202,000
|
|
|
|
35,877,612
|
|
|
|
-
|
|
|
|
2,584,539
|
|
|
|
7,202,000
|
|
|
|
38,462,151
|
|
|
|
45,664,151
|
|
|
|
(12,221,817
|
)
|
|
|
33,442,334
|
|
|
|
28,342,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Park
|
|
Brain Tree, MA
|
|
2000
|
|
|
202
|
|
|
|
5,977,504
|
|
|
|
26,749,111
|
|
|
|
-
|
|
|
|
1,935,923
|
|
|
|
5,977,504
|
|
|
|
28,685,034
|
|
|
|
34,662,538
|
|
|
|
(8,587,844
|
)
|
|
|
26,074,694
|
|
|
|
24,980,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Tower
|
|
Arlington, VA (G)
|
|
2008
|
|
|
235
|
|
|
|
16,382,822
|
|
|
|
83,817,078
|
|
|
|
-
|
|
|
|
98,458
|
|
|
|
16,382,822
|
|
|
|
83,915,536
|
|
|
|
100,298,358
|
|
|
|
(2,774,628
|
)
|
|
|
97,523,730
|
|
|
|
49,160,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lincoln Heights
|
|
Quincy, MA
|
|
1991
|
|
|
336
|
|
|
|
5,928,400
|
|
|
|
33,595,262
|
|
|
|
-
|
|
|
|
10,549,292
|
|
|
|
5,928,400
|
|
|
|
44,144,554
|
|
|
|
50,072,954
|
|
|
|
(19,375,802
|
)
|
|
|
30,697,152
|
|
|
|
(L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Longview Place
|
|
Waltham, MA
|
|
2004
|
|
|
348
|
|
|
|
20,880,000
|
|
|
|
90,255,509
|
|
|
|
-
|
|
|
|
1,460,656
|
|
|
|
20,880,000
|
|
|
|
91,716,165
|
|
|
|
112,596,165
|
|
|
|
(18,368,568
|
)
|
|
|
94,227,597
|
|
|
|
57,029,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Street Village
|
|
San Diego, CA
|
|
2006
|
|
|
229
|
|
|
|
13,740,000
|
|
|
|
40,757,300
|
|
|
|
-
|
|
|
|
345,628
|
|
|
|
13,740,000
|
|
|
|
41,102,928
|
|
|
|
54,842,928
|
|
|
|
(7,630,442
|
)
|
|
|
47,212,486
|
|
|
|
(K)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marks
|
|
Englewood, CO (G)
|
|
1987
|
|
|
616
|
|
|
|
4,928,500
|
|
|
|
44,622,314
|
|
|
|
-
|
|
|
|
8,060,048
|
|
|
|
4,928,500
|
|
|
|
52,682,362
|
|
|
|
57,610,862
|
|
|
|
(24,944,534
|
)
|
|
|
32,666,328
|
|
|
|
19,195,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metro on First
|
|
Seattle, WA (G)
|
|
2002
|
|
|
102
|
|
|
|
8,540,000
|
|
|
|
12,209,981
|
|
|
|
-
|
|
|
|
254,915
|
|
|
|
8,540,000
|
|
|
|
12,464,896
|
|
|
|
21,004,896
|
|
|
|
(2,757,191
|
)
|
|
|
18,247,705
|
|
|
|
16,650,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mill Creek
|
|
Milpitas, CA
|
|
1991
|
|
|
516
|
|
|
|
12,858,693
|
|
|
|
57,168,503
|
|
|
|
-
|
|
|
|
2,403,984
|
|
|
|
12,858,693
|
|
|
|
59,572,487
|
|
|
|
72,431,180
|
|
|
|
(17,116,835
|
)
|
|
|
55,314,345
|
|
|
|
69,312,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Miramar Lakes
|
|
Miramar, FL
|
|
2003
|
|
|
344
|
|
|
|
17,200,000
|
|
|
|
51,487,235
|
|
|
|
-
|
|
|
|
1,343,639
|
|
|
|
17,200,000
|
|
|
|
52,830,874
|
|
|
|
70,030,874
|
|
|
|
(11,391,642
|
)
|
|
|
58,639,232
|
|
|
|
(M)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missions at Sunbow
|
|
Chula Vista, CA
|
|
2003
|
|
|
336
|
|
|
|
28,560,000
|
|
|
|
59,287,595
|
|
|
|
-
|
|
|
|
1,148,849
|
|
|
|
28,560,000
|
|
|
|
60,436,444
|
|
|
|
88,996,444
|
|
|
|
(14,871,085
|
)
|
|
|
74,125,359
|
|
|
|
55,091,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monte Viejo
|
|
Phoneix, AZ
|
|
2004
|
|
|
480
|
|
|
|
12,700,000
|
|
|
|
45,926,784
|
|
|
|
-
|
|
|
|
976,950
|
|
|
|
12,700,000
|
|
|
|
46,903,734
|
|
|
|
59,603,734
|
|
|
|
(11,299,701
|
)
|
|
|
48,304,033
|
|
|
|
40,960,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Montecito
|
|
Valencia, CA
|
|
1999
|
|
|
210
|
|
|
|
8,400,000
|
|
|
|
24,709,146
|
|
|
|
-
|
|
|
|
1,732,020
|
|
|
|
8,400,000
|
|
|
|
26,441,166
|
|
|
|
34,841,166
|
|
|
|
(9,562,693
|
)
|
|
|
25,278,473
|
|
|
|
(K)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Montierra
|
|
Scottsdale, AZ
|
|
1999
|
|
|
249
|
|
|
|
3,455,000
|
|
|
|
17,266,787
|
|
|
|
-
|
|
|
|
1,458,706
|
|
|
|
3,455,000
|
|
|
|
18,725,493
|
|
|
|
22,180,493
|
|
|
|
(7,870,337
|
)
|
|
|
14,310,156
|
|
|
|
17,858,854
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Montierra (CA)
|
|
San Diego, CA
|
|
1990
|
|
|
272
|
|
|
|
8,160,000
|
|
|
|
29,360,938
|
|
|
|
-
|
|
|
|
6,457,847
|
|
|
|
8,160,000
|
|
|
|
35,818,785
|
|
|
|
43,978,785
|
|
|
|
(13,974,022
|
)
|
|
|
30,004,763
|
|
|
|
(K)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mosaic at Metro
|
|
Hyattsville, MD
|
|
2008
|
|
|
260
|
|
|
|
-
|
|
|
|
59,653,038
|
|
|
|
-
|
|
|
|
49,368
|
|
|
|
-
|
|
|
|
59,702,406
|
|
|
|
59,702,406
|
|
|
|
(4,118,730
|
)
|
|
|
55,583,676
|
|
|
|
45,046,469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mountain Park Ranch
|
|
Phoenix, AZ
|
|
1994
|
|
|
240
|
|
|
|
1,662,332
|
|
|
|
18,260,276
|
|
|
|
-
|
|
|
|
1,748,558
|
|
|
|
1,662,332
|
|
|
|
20,008,834
|
|
|
|
21,671,166
|
|
|
|
(9,432,301
|
)
|
|
|
12,238,865
|
|
|
|
(J)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mountain Terrace
|
|
Stevenson Ranch, CA
|
|
1992
|
|
|
510
|
|
|
|
3,966,500
|
|
|
|
35,814,995
|
|
|
|
-
|
|
|
|
11,502,806
|
|
|
|
3,966,500
|
|
|
|
47,317,801
|
|
|
|
51,284,301
|
|
|
|
(21,425,003
|
)
|
|
|
29,859,298
|
|
|
|
57,428,472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northpark
|
|
Burlingame, CA
|
|
1972
|
|
|
510
|
|
|
|
38,607,000
|
|
|
|
77,493,000
|
|
|
|
-
|
|
|
|
39,582
|
|
|
|
38,607,000
|
|
|
|
77,532,582
|
|
|
|
116,139,582
|
|
|
|
(3,084,091
|
)
|
|
|
113,055,491
|
|
|
|
70,668,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North Pier at Harborside
|
|
Jersey City, NJ (J)
|
|
2003
|
|
|
297
|
|
|
|
4,000,159
|
|
|
|
94,348,092
|
|
|
|
-
|
|
|
|
1,739,535
|
|
|
|
4,000,159
|
|
|
|
96,087,627
|
|
|
|
100,087,786
|
|
|
|
(22,321,947
|
)
|
|
|
77,765,839
|
|
|
|
76,862,000
|
S-11
EQUITY
RESIDENTIAL
Schedule III - Real Estate and Accumulated
Depreciation
December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Initial Cost to
|
|
|
|
|
|
Acquisition
|
|
|
|
|
|
at Close of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
|
|
|
Company
|
|
|
|
|
|
(Improvements, net) (E)
|
|
|
|
|
|
Period 12/31/10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of
|
|
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Accumulated
|
|
|
Investment in Real
|
|
|
|
Apartment Name
|
|
Location
|
|
Construction
|
|
Units (H)
|
|
|
Land
|
|
|
Fixtures
|
|
|
Land
|
|
|
Fixtures
|
|
|
Land
|
|
|
Fixtures (A)
|
|
|
Total (B)
|
|
|
Depreciation (C)
|
|
|
Estate, Net at 12/31/10 (B)
|
|
|
Encumbrances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oak Mill I
|
|
Germantown, MD
|
|
1984
|
|
|
208
|
|
|
|
10,000,000
|
|
|
|
13,155,522
|
|
|
|
-
|
|
|
|
7,235,088
|
|
|
|
10,000,000
|
|
|
|
20,390,610
|
|
|
|
30,390,610
|
|
|
|
(6,289,524
|
)
|
|
|
24,101,086
|
|
|
|
12,487,301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oak Mill II
|
|
Germantown, MD
|
|
1985
|
|
|
192
|
|
|
|
854,133
|
|
|
|
10,233,947
|
|
|
|
-
|
|
|
|
5,864,959
|
|
|
|
854,133
|
|
|
|
16,098,906
|
|
|
|
16,953,039
|
|
|
|
(8,498,045
|
)
|
|
|
8,454,994
|
|
|
|
9,600,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oaks
|
|
Santa Clarita, CA
|
|
2000
|
|
|
520
|
|
|
|
23,400,000
|
|
|
|
61,020,438
|
|
|
|
-
|
|
|
|
2,652,544
|
|
|
|
23,400,000
|
|
|
|
63,672,982
|
|
|
|
87,072,982
|
|
|
|
(17,959,221
|
)
|
|
|
69,113,761
|
|
|
|
41,154,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olde Redmond Place
|
|
Redmond, WA
|
|
1986
|
|
|
192
|
|
|
|
4,807,100
|
|
|
|
14,126,038
|
|
|
|
-
|
|
|
|
4,122,122
|
|
|
|
4,807,100
|
|
|
|
18,248,160
|
|
|
|
23,055,260
|
|
|
|
(8,527,802
|
)
|
|
|
14,527,458
|
|
|
|
(L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parc East Towers
|
|
New York, NY (G)
|
|
1977
|
|
|
324
|
|
|
|
102,163,000
|
|
|
|
109,013,628
|
|
|
|
-
|
|
|
|
5,654,774
|
|
|
|
102,163,000
|
|
|
|
114,668,402
|
|
|
|
216,831,402
|
|
|
|
(18,284,019
|
)
|
|
|
198,547,383
|
|
|
|
17,473,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Park Meadow
|
|
Gilbert, AZ
|
|
1986
|
|
|
225
|
|
|
|
835,217
|
|
|
|
15,120,769
|
|
|
|
-
|
|
|
|
2,267,564
|
|
|
|
835,217
|
|
|
|
17,388,333
|
|
|
|
18,223,550
|
|
|
|
(8,395,148
|
)
|
|
|
9,828,402
|
|
|
|
(L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parkfield
|
|
Denver, CO
|
|
2000
|
|
|
476
|
|
|
|
8,330,000
|
|
|
|
28,667,618
|
|
|
|
-
|
|
|
|
2,155,451
|
|
|
|
8,330,000
|
|
|
|
30,823,069
|
|
|
|
39,153,069
|
|
|
|
(11,251,895
|
)
|
|
|
27,901,174
|
|
|
|
23,275,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Promenade at Peachtree
|
|
Chamblee, GA
|
|
2001
|
|
|
406
|
|
|
|
10,150,000
|
|
|
|
31,219,739
|
|
|
|
-
|
|
|
|
1,645,577
|
|
|
|
10,150,000
|
|
|
|
32,865,316
|
|
|
|
43,015,316
|
|
|
|
(8,729,820
|
)
|
|
|
34,285,496
|
|
|
|
(K)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Promenade at Town Center II
|
|
Valencia, CA
|
|
2001
|
|
|
270
|
|
|
|
13,500,000
|
|
|
|
34,405,636
|
|
|
|
-
|
|
|
|
391,668
|
|
|
|
13,500,000
|
|
|
|
34,797,304
|
|
|
|
48,297,304
|
|
|
|
(9,307,693
|
)
|
|
|
38,989,611
|
|
|
|
32,785,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Providence
|
|
Bothell, WA
|
|
2000
|
|
|
200
|
|
|
|
3,573,621
|
|
|
|
19,055,505
|
|
|
|
-
|
|
|
|
541,320
|
|
|
|
3,573,621
|
|
|
|
19,596,825
|
|
|
|
23,170,446
|
|
|
|
(5,354,911
|
)
|
|
|
17,815,535
|
|
|
|
(J)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve at Clarendon Centre, The
|
|
Arlington, VA (G)
|
|
2003
|
|
|
252
|
|
|
|
10,500,000
|
|
|
|
52,812,935
|
|
|
|
-
|
|
|
|
1,777,312
|
|
|
|
10,500,000
|
|
|
|
54,590,247
|
|
|
|
65,090,247
|
|
|
|
(14,249,748
|
)
|
|
|
50,840,499
|
|
|
|
(K)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve at Eisenhower, The
|
|
Alexandria, VA
|
|
2002
|
|
|
226
|
|
|
|
6,500,000
|
|
|
|
34,585,060
|
|
|
|
-
|
|
|
|
702,144
|
|
|
|
6,500,000
|
|
|
|
35,287,204
|
|
|
|
41,787,204
|
|
|
|
(10,058,015
|
)
|
|
|
31,729,189
|
|
|
|
(K)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve at Empire Lakes
|
|
Rancho Cucamonga, CA
|
|
2005
|
|
|
467
|
|
|
|
16,345,000
|
|
|
|
73,080,670
|
|
|
|
-
|
|
|
|
1,396,394
|
|
|
|
16,345,000
|
|
|
|
74,477,064
|
|
|
|
90,822,064
|
|
|
|
(15,486,334
|
)
|
|
|
75,335,730
|
|
|
|
(J)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve at Fairfax Corners
|
|
Fairfax, VA
|
|
2001
|
|
|
652
|
|
|
|
15,804,057
|
|
|
|
63,129,051
|
|
|
|
-
|
|
|
|
2,563,175
|
|
|
|
15,804,057
|
|
|
|
65,692,226
|
|
|
|
81,496,283
|
|
|
|
(19,948,034
|
)
|
|
|
61,548,249
|
|
|
|
84,778,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve at Potomac Yard
|
|
Alexandria, VA
|
|
2002
|
|
|
588
|
|
|
|
11,918,917
|
|
|
|
68,976,484
|
|
|
|
-
|
|
|
|
3,376,272
|
|
|
|
11,918,917
|
|
|
|
72,352,756
|
|
|
|
84,271,673
|
|
|
|
(17,772,440
|
)
|
|
|
66,499,233
|
|
|
|
66,470,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve at Town Center (WA)
|
|
Mill Creek, WA
|
|
2001
|
|
|
389
|
|
|
|
10,369,400
|
|
|
|
41,172,081
|
|
|
|
-
|
|
|
|
1,414,773
|
|
|
|
10,369,400
|
|
|
|
42,586,854
|
|
|
|
52,956,254
|
|
|
|
(10,871,457
|
)
|
|
|
42,084,797
|
|
|
|
29,160,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rianna II
|
|
Seattle, WA (G)
|
|
2002
|
|
|
78
|
|
|
|
2,161,840
|
|
|
|
14,433,614
|
|
|
|
-
|
|
|
|
16,614
|
|
|
|
2,161,840
|
|
|
|
14,450,228
|
|
|
|
16,612,068
|
|
|
|
(1,072,947
|
)
|
|
|
15,539,121
|
|
|
|
10,499,494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rockingham Glen
|
|
West Roxbury, MA
|
|
1974
|
|
|
143
|
|
|
|
1,124,217
|
|
|
|
7,515,160
|
|
|
|
-
|
|
|
|
1,533,725
|
|
|
|
1,124,217
|
|
|
|
9,048,885
|
|
|
|
10,173,102
|
|
|
|
(3,757,339
|
)
|
|
|
6,415,763
|
|
|
|
1,440,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rolling Green (Amherst)
|
|
Amherst, MA
|
|
1970
|
|
|
204
|
|
|
|
1,340,702
|
|
|
|
8,962,317
|
|
|
|
-
|
|
|
|
3,313,332
|
|
|
|
1,340,702
|
|
|
|
12,275,649
|
|
|
|
13,616,351
|
|
|
|
(5,297,121
|
)
|
|
|
8,319,230
|
|
|
|
2,217,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rolling Green (Milford)
|
|
Milford, MA
|
|
1970
|
|
|
304
|
|
|
|
2,012,350
|
|
|
|
13,452,150
|
|
|
|
-
|
|
|
|
3,986,562
|
|
|
|
2,012,350
|
|
|
|
17,438,712
|
|
|
|
19,451,062
|
|
|
|
(7,305,093
|
)
|
|
|
12,145,969
|
|
|
|
4,645,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Marcos Apartments
|
|
Scottsdale, AZ
|
|
1995
|
|
|
320
|
|
|
|
20,000,000
|
|
|
|
31,261,609
|
|
|
|
-
|
|
|
|
1,384,451
|
|
|
|
20,000,000
|
|
|
|
32,646,060
|
|
|
|
52,646,060
|
|
|
|
(7,272,584
|
)
|
|
|
45,373,476
|
|
|
|
32,900,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savannah Lakes
|
|
Boynton Beach, FL
|
|
1991
|
|
|
466
|
|
|
|
7,000,000
|
|
|
|
30,263,310
|
|
|
|
-
|
|
|
|
4,429,051
|
|
|
|
7,000,000
|
|
|
|
34,692,361
|
|
|
|
41,692,361
|
|
|
|
(11,606,796
|
)
|
|
|
30,085,565
|
|
|
|
36,610,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savannah Midtown
|
|
Atlanta, GA
|
|
2000
|
|
|
322
|
|
|
|
7,209,873
|
|
|
|
29,433,507
|
|
|
|
-
|
|
|
|
2,603,453
|
|
|
|
7,209,873
|
|
|
|
32,036,960
|
|
|
|
39,246,833
|
|
|
|
(8,514,514
|
)
|
|
|
30,732,319
|
|
|
|
17,800,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savoy I
|
|
Aurora, CO
|
|
2001
|
|
|
444
|
|
|
|
5,450,295
|
|
|
|
38,765,670
|
|
|
|
-
|
|
|
|
1,964,604
|
|
|
|
5,450,295
|
|
|
|
40,730,274
|
|
|
|
46,180,569
|
|
|
|
(11,009,808
|
)
|
|
|
35,170,761
|
|
|
|
(L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sheffield Court
|
|
Arlington, VA
|
|
1986
|
|
|
597
|
|
|
|
3,342,381
|
|
|
|
31,337,332
|
|
|
|
-
|
|
|
|
7,927,865
|
|
|
|
3,342,381
|
|
|
|
39,265,197
|
|
|
|
42,607,578
|
|
|
|
(21,583,314
|
)
|
|
|
21,024,264
|
|
|
|
(L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sonata at Cherry Creek
|
|
Denver, CO
|
|
1999
|
|
|
183
|
|
|
|
5,490,000
|
|
|
|
18,130,479
|
|
|
|
-
|
|
|
|
1,162,983
|
|
|
|
5,490,000
|
|
|
|
19,293,462
|
|
|
|
24,783,462
|
|
|
|
(6,957,885
|
)
|
|
|
17,825,577
|
|
|
|
19,190,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sonterra at Foothill Ranch
|
|
Foothill Ranch, CA
|
|
1997
|
|
|
300
|
|
|
|
7,503,400
|
|
|
|
24,048,507
|
|
|
|
-
|
|
|
|
1,500,506
|
|
|
|
7,503,400
|
|
|
|
25,549,013
|
|
|
|
33,052,413
|
|
|
|
(11,490,634
|
)
|
|
|
21,561,779
|
|
|
|
(L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South Winds
|
|
Fall River, MA
|
|
1971
|
|
|
404
|
|
|
|
2,481,821
|
|
|
|
16,780,359
|
|
|
|
-
|
|
|
|
3,712,343
|
|
|
|
2,481,821
|
|
|
|
20,492,702
|
|
|
|
22,974,523
|
|
|
|
(8,697,220
|
)
|
|
|
14,277,303
|
|
|
|
4,437,567
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Springs Colony
|
|
Altamonte Springs, FL
|
|
1986
|
|
|
188
|
|
|
|
630,411
|
|
|
|
5,852,157
|
|
|
|
-
|
|
|
|
2,363,300
|
|
|
|
630,411
|
|
|
|
8,215,457
|
|
|
|
8,845,868
|
|
|
|
(5,129,095
|
)
|
|
|
3,716,773
|
|
|
|
(I)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stonegate (CO)
|
|
Broomfield, CO
|
|
2003
|
|
|
350
|
|
|
|
8,750,000
|
|
|
|
32,998,775
|
|
|
|
-
|
|
|
|
2,700,719
|
|
|
|
8,750,000
|
|
|
|
35,699,494
|
|
|
|
44,449,494
|
|
|
|
(8,900,049
|
)
|
|
|
35,549,445
|
|
|
|
(J)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stoneleigh at Deerfield
|
|
Alpharetta, GA
|
|
2003
|
|
|
370
|
|
|
|
4,810,000
|
|
|
|
29,999,596
|
|
|
|
-
|
|
|
|
871,524
|
|
|
|
4,810,000
|
|
|
|
30,871,120
|
|
|
|
35,681,120
|
|
|
|
(7,656,545
|
)
|
|
|
28,024,575
|
|
|
|
16,800,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stoney Ridge
|
|
Dale City, VA
|
|
1985
|
|
|
264
|
|
|
|
8,000,000
|
|
|
|
24,147,091
|
|
|
|
-
|
|
|
|
5,287,141
|
|
|
|
8,000,000
|
|
|
|
29,434,232
|
|
|
|
37,434,232
|
|
|
|
(7,934,618
|
)
|
|
|
29,499,614
|
|
|
|
15,138,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stonybrook
|
|
Boynton Beach, FL
|
|
2001
|
|
|
264
|
|
|
|
10,500,000
|
|
|
|
24,967,638
|
|
|
|
-
|
|
|
|
951,679
|
|
|
|
10,500,000
|
|
|
|
25,919,317
|
|
|
|
36,419,317
|
|
|
|
(6,210,078
|
)
|
|
|
30,209,239
|
|
|
|
20,971,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summerhill Glen
|
|
Maynard, MA
|
|
1980
|
|
|
120
|
|
|
|
415,812
|
|
|
|
3,000,816
|
|
|
|
-
|
|
|
|
766,088
|
|
|
|
415,812
|
|
|
|
3,766,904
|
|
|
|
4,182,716
|
|
|
|
(1,622,076
|
)
|
|
|
2,560,640
|
|
|
|
1,174,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summerset Village
|
|
Chatsworth, CA
|
|
1985
|
|
|
280
|
|
|
|
2,890,450
|
|
|
|
23,670,889
|
|
|
|
-
|
|
|
|
3,797,264
|
|
|
|
2,890,450
|
|
|
|
27,468,153
|
|
|
|
30,358,603
|
|
|
|
(13,674,820
|
)
|
|
|
16,683,783
|
|
|
|
38,039,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sunforest
|
|
Davie, FL
|
|
1989
|
|
|
494
|
|
|
|
10,000,000
|
|
|
|
32,124,850
|
|
|
|
-
|
|
|
|
4,030,481
|
|
|
|
10,000,000
|
|
|
|
36,155,331
|
|
|
|
46,155,331
|
|
|
|
(11,194,003
|
)
|
|
|
34,961,328
|
|
|
|
(L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sunforest II
|
|
Davie, FL
|
|
(F)
|
|
|
-
|
|
|
|
-
|
|
|
|
337,751
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
337,751
|
|
|
|
337,751
|
|
|
|
-
|
|
|
|
337,751
|
|
|
|
(L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Talleyrand
|
|
Tarrytown, NY (I)
|
|
1997-1998
|
|
|
300
|
|
|
|
12,000,000
|
|
|
|
49,838,160
|
|
|
|
-
|
|
|
|
3,696,522
|
|
|
|
12,000,000
|
|
|
|
53,534,682
|
|
|
|
65,534,682
|
|
|
|
(17,861,336
|
)
|
|
|
47,673,346
|
|
|
|
35,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tanglewood (VA)
|
|
Manassas, VA
|
|
1987
|
|
|
432
|
|
|
|
2,108,295
|
|
|
|
24,619,495
|
|
|
|
-
|
|
|
|
8,462,243
|
|
|
|
2,108,295
|
|
|
|
33,081,738
|
|
|
|
35,190,033
|
|
|
|
(18,128,350
|
)
|
|
|
17,061,683
|
|
|
|
25,110,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Teresina
|
|
Chula Vista, CA
|
|
2000
|
|
|
440
|
|
|
|
28,600,000
|
|
|
|
61,916,670
|
|
|
|
-
|
|
|
|
1,767,940
|
|
|
|
28,600,000
|
|
|
|
63,684,610
|
|
|
|
92,284,610
|
|
|
|
(13,155,998
|
)
|
|
|
79,128,612
|
|
|
|
44,095,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Touriel Building
|
|
Berkeley, CA (G)
|
|
2004
|
|
|
35
|
|
|
|
2,736,000
|
|
|
|
7,810,027
|
|
|
|
-
|
|
|
|
33,587
|
|
|
|
2,736,000
|
|
|
|
7,843,614
|
|
|
|
10,579,614
|
|
|
|
(1,392,156
|
)
|
|
|
9,187,458
|
|
|
|
5,050,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Town Square at Mark Center I (fka Millbrook I)
|
|
Alexandria, VA
|
|
1996
|
|
|
406
|
|
|
|
24,360,000
|
|
|
|
86,178,714
|
|
|
|
-
|
|
|
|
2,422,299
|
|
|
|
24,360,000
|
|
|
|
88,601,013
|
|
|
|
112,961,013
|
|
|
|
(19,521,198
|
)
|
|
|
93,439,815
|
|
|
|
64,680,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Town Square at Mark Center Phase II
|
|
Alexandria, VA
|
|
2001
|
|
|
272
|
|
|
|
15,568,464
|
|
|
|
55,031,536
|
|
|
|
-
|
|
|
|
34,830
|
|
|
|
15,568,464
|
|
|
|
55,066,366
|
|
|
|
70,634,830
|
|
|
|
(1,956,133
|
)
|
|
|
68,678,697
|
|
|
|
47,669,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tradition at Alafaya
|
|
Oviedo, FL
|
|
2006
|
|
|
253
|
|
|
|
7,590,000
|
|
|
|
31,881,505
|
|
|
|
-
|
|
|
|
238,496
|
|
|
|
7,590,000
|
|
|
|
32,120,001
|
|
|
|
39,710,001
|
|
|
|
(7,731,307
|
)
|
|
|
31,978,694
|
|
|
|
(K)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tuscany at Lindbergh
|
|
Atlanta, GA
|
|
2001
|
|
|
324
|
|
|
|
9,720,000
|
|
|
|
40,874,023
|
|
|
|
-
|
|
|
|
1,753,394
|
|
|
|
9,720,000
|
|
|
|
42,627,417
|
|
|
|
52,347,417
|
|
|
|
(11,365,288
|
)
|
|
|
40,982,129
|
|
|
|
32,360,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Uptown Square
|
|
Denver, CO (G)
|
|
1999/2001
|
|
|
696
|
|
|
|
17,492,000
|
|
|
|
100,696,541
|
|
|
|
-
|
|
|
|
2,232,071
|
|
|
|
17,492,000
|
|
|
|
102,928,612
|
|
|
|
120,420,612
|
|
|
|
(24,014,273
|
)
|
|
|
96,406,339
|
|
|
|
88,550,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Versailles
|
|
Woodland Hills, CA
|
|
1991
|
|
|
253
|
|
|
|
12,650,000
|
|
|
|
33,656,292
|
|
|
|
-
|
|
|
|
3,630,019
|
|
|
|
12,650,000
|
|
|
|
37,286,311
|
|
|
|
49,936,311
|
|
|
|
(11,205,924
|
)
|
|
|
38,730,387
|
|
|
|
30,372,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Via Ventura
|
|
Scottsdale, AZ
|
|
1980
|
|
|
328
|
|
|
|
1,351,785
|
|
|
|
13,382,006
|
|
|
|
-
|
|
|
|
7,962,802
|
|
|
|
1,351,785
|
|
|
|
21,344,808
|
|
|
|
22,696,593
|
|
|
|
(14,368,306
|
)
|
|
|
8,328,287
|
|
|
|
(K)
|
S-12
EQUITY
RESIDENTIAL
Schedule III - Real Estate and Accumulated
Depreciation
December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Initial Cost to
|
|
|
|
|
|
Acquisition
|
|
|
|
|
|
at Close of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
|
|
|
Company
|
|
|
|
|
|
(Improvements, net) (E)
|
|
|
|
|
|
Period 12/31/10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of
|
|
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Building &
|
|
|
|
|
|
Accumulated
|
|
|
Investment in Real
|
|
|
|
Apartment Name
|
|
Location
|
|
Construction
|
|
Units (H)
|
|
|
Land
|
|
|
Fixtures
|
|
|
Land
|
|
|
Fixtures
|
|
|
Land
|
|
|
Fixtures (A)
|
|
|
Total (B)
|
|
|
Depreciation (C)
|
|
|
Estate, Net at 12/31/10 (B)
|
|
|
Encumbrances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Village at Lakewood
|
|
Phoenix, AZ
|
|
1988
|
|
|
240
|
|
|
|
3,166,411
|
|
|
|
13,859,090
|
|
|
|
-
|
|
|
|
2,013,344
|
|
|
|
3,166,411
|
|
|
|
15,872,434
|
|
|
|
19,038,845
|
|
|
|
(7,739,644
|
)
|
|
|
11,299,201
|
|
|
|
(L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vintage
|
|
Ontario, CA
|
|
2005-2007
|
|
|
300
|
|
|
|
7,059,230
|
|
|
|
47,677,762
|
|
|
|
-
|
|
|
|
176,250
|
|
|
|
7,059,230
|
|
|
|
47,854,012
|
|
|
|
54,913,242
|
|
|
|
(8,609,805
|
)
|
|
|
46,303,437
|
|
|
|
33,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warwick Station
|
|
Westminster, CO
|
|
1986
|
|
|
332
|
|
|
|
2,274,121
|
|
|
|
21,113,974
|
|
|
|
-
|
|
|
|
3,015,763
|
|
|
|
2,274,121
|
|
|
|
24,129,737
|
|
|
|
26,403,858
|
|
|
|
(11,495,261
|
)
|
|
|
14,908,597
|
|
|
|
8,355,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wellington Hill
|
|
Manchester, NH
|
|
1987
|
|
|
390
|
|
|
|
1,890,200
|
|
|
|
17,120,662
|
|
|
|
-
|
|
|
|
7,628,748
|
|
|
|
1,890,200
|
|
|
|
24,749,410
|
|
|
|
26,639,610
|
|
|
|
(15,003,057
|
)
|
|
|
11,636,553
|
|
|
|
(I)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Westgate Pasadena Apartments
|
|
Pasadena, CA
|
|
2010
|
|
|
480
|
|
|
|
22,898,848
|
|
|
|
131,986,739
|
|
|
|
-
|
|
|
|
(263
|
)
|
|
|
22,898,848
|
|
|
|
131,986,476
|
|
|
|
154,885,324
|
|
|
|
(185
|
)
|
|
|
154,885,139
|
|
|
|
135,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Westwood Glen
|
|
Westwood, MA
|
|
1972
|
|
|
156
|
|
|
|
1,616,505
|
|
|
|
10,806,004
|
|
|
|
-
|
|
|
|
1,495,929
|
|
|
|
1,616,505
|
|
|
|
12,301,933
|
|
|
|
13,918,438
|
|
|
|
(4,379,593
|
)
|
|
|
9,538,845
|
|
|
|
392,294
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Whisper Creek
|
|
Denver, CO
|
|
2002
|
|
|
272
|
|
|
|
5,310,000
|
|
|
|
22,998,558
|
|
|
|
-
|
|
|
|
843,388
|
|
|
|
5,310,000
|
|
|
|
23,841,946
|
|
|
|
29,151,946
|
|
|
|
(6,016,094
|
)
|
|
|
23,135,852
|
|
|
|
13,580,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wilkins Glen
|
|
Medfield, MA
|
|
1975
|
|
|
103
|
|
|
|
538,483
|
|
|
|
3,629,943
|
|
|
|
-
|
|
|
|
1,484,323
|
|
|
|
538,483
|
|
|
|
5,114,266
|
|
|
|
5,652,749
|
|
|
|
(2,071,249
|
)
|
|
|
3,581,500
|
|
|
|
1,011,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Windridge (CA)
|
|
Laguna Niguel, CA
|
|
1989
|
|
|
344
|
|
|
|
2,662,900
|
|
|
|
23,985,497
|
|
|
|
-
|
|
|
|
5,111,877
|
|
|
|
2,662,900
|
|
|
|
29,097,374
|
|
|
|
31,760,274
|
|
|
|
(16,423,796
|
)
|
|
|
15,336,478
|
|
|
|
(I)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Woodlake (WA)
|
|
Kirkland, WA
|
|
1984
|
|
|
288
|
|
|
|
6,631,400
|
|
|
|
16,735,484
|
|
|
|
-
|
|
|
|
2,745,189
|
|
|
|
6,631,400
|
|
|
|
19,480,673
|
|
|
|
26,112,073
|
|
|
|
(9,005,733
|
)
|
|
|
17,106,340
|
|
|
|
(L)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQR Wholly Owned Encumbered
|
|
|
|
|
|
|
39,395
|
|
|
|
1,192,346,786
|
|
|
|
4,453,550,234
|
|
|
|
-
|
|
|
|
370,524,330
|
|
|
|
1,192,346,786
|
|
|
|
4,824,074,564
|
|
|
|
6,016,421,350
|
|
|
|
(1,346,626,508
|
)
|
|
|
4,669,794,842
|
|
|
|
2,595,245,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQR Partially Owned Unencumbered:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Butterfield Ranch
|
|
Chino Hills, CA
|
|
(F)
|
|
|
-
|
|
|
|
15,617,709
|
|
|
|
4,512,495
|
|
|
|
-
|
|
|
|
-
|
|
|
|
15,617,709
|
|
|
|
4,512,495
|
|
|
|
20,130,204
|
|
|
|
-
|
|
|
|
20,130,204
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson Crossing II
|
|
New York, NY
|
|
(F)
|
|
|
-
|
|
|
|
5,000,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,000,000
|
|
|
|
-
|
|
|
|
5,000,000
|
|
|
|
-
|
|
|
|
5,000,000
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQR Partially Owned Unencumbered
|
|
|
|
|
|
|
-
|
|
|
|
20,617,709
|
|
|
|
4,512,495
|
|
|
|
-
|
|
|
|
-
|
|
|
|
20,617,709
|
|
|
|
4,512,495
|
|
|
|
25,130,204
|
|
|
|
-
|
|
|
|
25,130,204
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQR Partially Owned Encumbered:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brooklyner (fka 111 Lawrence)
|
|
Brooklyn, NY (G)
|
|
2010
|
|
|
490
|
|
|
|
40,099,922
|
|
|
|
217,648,526
|
|
|
|
-
|
|
|
|
(1,947
|
)
|
|
|
40,099,922
|
|
|
|
217,646,579
|
|
|
|
257,746,501
|
|
|
|
-
|
|
|
|
257,746,501
|
|
|
|
141,741,076
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1401 South State (fka City Lofts)
|
|
Chicago, IL
|
|
2008
|
|
|
278
|
|
|
|
6,882,467
|
|
|
|
61,575,245
|
|
|
|
-
|
|
|
|
53,017
|
|
|
|
6,882,467
|
|
|
|
61,628,262
|
|
|
|
68,510,729
|
|
|
|
(5,846,831
|
)
|
|
|
62,663,898
|
|
|
|
51,014,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2300 Elliott
|
|
Seattle, WA
|
|
1992
|
|
|
92
|
|
|
|
796,800
|
|
|
|
7,173,725
|
|
|
|
-
|
|
|
|
5,462,325
|
|
|
|
796,800
|
|
|
|
12,636,050
|
|
|
|
13,432,850
|
|
|
|
(7,894,112
|
)
|
|
|
5,538,738
|
|
|
|
6,833,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bellevue Meadows
|
|
Bellevue, WA
|
|
1983
|
|
|
180
|
|
|
|
4,507,100
|
|
|
|
12,574,814
|
|
|
|
-
|
|
|
|
4,122,712
|
|
|
|
4,507,100
|
|
|
|
16,697,526
|
|
|
|
21,204,626
|
|
|
|
(7,309,912
|
)
|
|
|
13,894,714
|
|
|
|
16,538,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canyon Creek (CA)
|
|
San Ramon, CA
|
|
1984
|
|
|
268
|
|
|
|
5,425,000
|
|
|
|
18,812,121
|
|
|
|
-
|
|
|
|
4,809,646
|
|
|
|
5,425,000
|
|
|
|
23,621,767
|
|
|
|
29,046,767
|
|
|
|
(8,225,808
|
)
|
|
|
20,820,959
|
|
|
|
28,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canyon Ridge
|
|
San Diego, CA
|
|
1989
|
|
|
162
|
|
|
|
4,869,448
|
|
|
|
11,955,064
|
|
|
|
-
|
|
|
|
1,757,641
|
|
|
|
4,869,448
|
|
|
|
13,712,705
|
|
|
|
18,582,153
|
|
|
|
(6,531,026
|
)
|
|
|
12,051,127
|
|
|
|
15,165,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper Creek
|
|
Tempe, AZ
|
|
1984
|
|
|
144
|
|
|
|
1,017,400
|
|
|
|
9,158,260
|
|
|
|
-
|
|
|
|
1,846,036
|
|
|
|
1,017,400
|
|
|
|
11,004,296
|
|
|
|
12,021,696
|
|
|
|
(5,587,555
|
)
|
|
|
6,434,141
|
|
|
|
5,112,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Country Oaks
|
|
Agoura Hills, CA
|
|
1985
|
|
|
256
|
|
|
|
6,105,000
|
|
|
|
29,561,865
|
|
|
|
-
|
|
|
|
3,142,792
|
|
|
|
6,105,000
|
|
|
|
32,704,657
|
|
|
|
38,809,657
|
|
|
|
(10,694,009
|
)
|
|
|
28,115,648
|
|
|
|
29,412,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EDS Dulles
|
|
Herndon, VA
|
|
(F)
|
|
|
-
|
|
|
|
18,875,631
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
18,875,631
|
|
|
|
-
|
|
|
|
18,875,631
|
|
|
|
-
|
|
|
|
18,875,631
|
|
|
|
18,342,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fox Ridge
|
|
Englewood, CO
|
|
1984
|
|
|
300
|
|
|
|
2,490,000
|
|
|
|
17,522,114
|
|
|
|
-
|
|
|
|
3,394,463
|
|
|
|
2,490,000
|
|
|
|
20,916,577
|
|
|
|
23,406,577
|
|
|
|
(8,158,317
|
)
|
|
|
15,248,260
|
|
|
|
20,300,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lantern Cove
|
|
Foster City, CA
|
|
1985
|
|
|
232
|
|
|
|
6,945,000
|
|
|
|
23,332,206
|
|
|
|
-
|
|
|
|
2,722,185
|
|
|
|
6,945,000
|
|
|
|
26,054,391
|
|
|
|
32,999,391
|
|
|
|
(8,961,365
|
)
|
|
|
24,038,026
|
|
|
|
36,403,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mesa Del Oso
|
|
Albuquerque, NM
|
|
1983
|
|
|
221
|
|
|
|
4,305,000
|
|
|
|
12,160,419
|
|
|
|
-
|
|
|
|
1,556,306
|
|
|
|
4,305,000
|
|
|
|
13,716,725
|
|
|
|
18,021,725
|
|
|
|
(5,210,415
|
)
|
|
|
12,811,310
|
|
|
|
9,525,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Montclair Metro
|
|
Montclair, NJ
|
|
2009
|
|
|
163
|
|
|
|
2,400,887
|
|
|
|
43,570,641
|
|
|
|
-
|
|
|
|
2,092
|
|
|
|
2,400,887
|
|
|
|
43,572,733
|
|
|
|
45,973,620
|
|
|
|
(2,218,030
|
)
|
|
|
43,755,590
|
|
|
|
34,439,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monterra in Mill Creek
|
|
Mill Creek, WA
|
|
2003
|
|
|
139
|
|
|
|
2,800,000
|
|
|
|
13,255,123
|
|
|
|
-
|
|
|
|
236,867
|
|
|
|
2,800,000
|
|
|
|
13,491,990
|
|
|
|
16,291,990
|
|
|
|
(3,232,493
|
)
|
|
|
13,059,497
|
|
|
|
7,286,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preserve at Briarcliff
|
|
Atlanta, GA
|
|
1994
|
|
|
182
|
|
|
|
6,370,000
|
|
|
|
17,766,322
|
|
|
|
-
|
|
|
|
646,793
|
|
|
|
6,370,000
|
|
|
|
18,413,115
|
|
|
|
24,783,115
|
|
|
|
(3,777,603
|
)
|
|
|
21,005,512
|
|
|
|
6,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Red Road Commons
|
|
Miami, FL (G)
|
|
2009
|
|
|
404
|
|
|
|
27,383,547
|
|
|
|
99,555,530
|
|
|
|
-
|
|
|
|
(2,216
|
)
|
|
|
27,383,547
|
|
|
|
99,553,314
|
|
|
|
126,936,861
|
|
|
|
(3,497,205
|
)
|
|
|
123,439,656
|
|
|
|
74,150,144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rosecliff
|
|
Quincy, MA
|
|
1990
|
|
|
156
|
|
|
|
5,460,000
|
|
|
|
15,721,570
|
|
|
|
-
|
|
|
|
1,453,717
|
|
|
|
5,460,000
|
|
|
|
17,175,287
|
|
|
|
22,635,287
|
|
|
|
(6,797,434
|
)
|
|
|
15,837,853
|
|
|
|
17,400,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schooner Bay I
|
|
Foster City, CA
|
|
1985
|
|
|
168
|
|
|
|
5,345,000
|
|
|
|
20,509,239
|
|
|
|
-
|
|
|
|
3,191,061
|
|
|
|
5,345,000
|
|
|
|
23,700,300
|
|
|
|
29,045,300
|
|
|
|
(7,741,356
|
)
|
|
|
21,303,944
|
|
|
|
27,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schooner Bay II
|
|
Foster City, CA
|
|
1985
|
|
|
144
|
|
|
|
4,550,000
|
|
|
|
18,142,163
|
|
|
|
-
|
|
|
|
2,985,085
|
|
|
|
4,550,000
|
|
|
|
21,127,248
|
|
|
|
25,677,248
|
|
|
|
(6,970,045
|
)
|
|
|
18,707,203
|
|
|
|
23,760,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Scottsdale Meadows
|
|
Scottsdale, AZ
|
|
1984
|
|
|
168
|
|
|
|
1,512,000
|
|
|
|
11,423,349
|
|
|
|
-
|
|
|
|
1,629,554
|
|
|
|
1,512,000
|
|
|
|
13,052,903
|
|
|
|
14,564,903
|
|
|
|
(6,274,752
|
)
|
|
|
8,290,151
|
|
|
|
9,100,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strayhorse at Arrowhead Ranch
|
|
Glendale, AZ
|
|
1998
|
|
|
136
|
|
|
|
4,400,000
|
|
|
|
12,968,002
|
|
|
|
-
|
|
|
|
186,009
|
|
|
|
4,400,000
|
|
|
|
13,154,011
|
|
|
|
17,554,011
|
|
|
|
(2,422,470
|
)
|
|
|
15,131,541
|
|
|
|
7,971,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surrey Downs
|
|
Bellevue, WA
|
|
1986
|
|
|
122
|
|
|
|
3,057,100
|
|
|
|
7,848,618
|
|
|
|
-
|
|
|
|
1,993,876
|
|
|
|
3,057,100
|
|
|
|
9,842,494
|
|
|
|
12,899,594
|
|
|
|
(4,301,654
|
)
|
|
|
8,597,940
|
|
|
|
9,829,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Veridian (fka Silver Spring)
|
|
Silver Spring, MD (G)
|
|
2009
|
|
|
457
|
|
|
|
18,539,817
|
|
|
|
130,485,284
|
|
|
|
-
|
|
|
|
18,886
|
|
|
|
18,539,817
|
|
|
|
130,504,170
|
|
|
|
149,043,987
|
|
|
|
(6,908,776
|
)
|
|
|
142,135,211
|
|
|
|
115,744,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Virgil Square
|
|
Los Angeles, CA
|
|
1979
|
|
|
142
|
|
|
|
5,500,000
|
|
|
|
15,216,613
|
|
|
|
-
|
|
|
|
1,334,954
|
|
|
|
5,500,000
|
|
|
|
16,551,567
|
|
|
|
22,051,567
|
|
|
|
(3,992,519
|
)
|
|
|
18,059,048
|
|
|
|
9,900,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Willow Brook (CA)
|
|
Pleasant Hill, CA
|
|
1985
|
|
|
228
|
|
|
|
5,055,000
|
|
|
|
38,388,672
|
|
|
|
-
|
|
|
|
1,857,343
|
|
|
|
5,055,000
|
|
|
|
40,246,015
|
|
|
|
45,301,015
|
|
|
|
(10,264,218
|
)
|
|
|
35,036,797
|
|
|
|
29,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQR Partially Owned Encumbered
|
|
|
|
|
|
|
5,232
|
|
|
|
194,692,119
|
|
|
|
866,325,485
|
|
|
|
-
|
|
|
|
44,399,197
|
|
|
|
194,692,119
|
|
|
|
910,724,682
|
|
|
|
1,105,416,801
|
|
|
|
(142,817,905
|
)
|
|
|
962,598,896
|
|
|
|
749,967,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio/Entity Encumbrances (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,417,683,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consolidated Investment in Real Estate
|
|
|
|
|
124,866
|
|
|
$
|
4,336,999,983
|
|
|
$
|
13,999,852,420
|
|
|
$
|
-
|
|
|
$
|
1,365,518,589
|
|
|
$
|
4,336,999,983
|
|
|
$
|
15,365,371,009
|
|
|
$
|
319,702,370,992
|
|
|
$
|
(4,337,356,641
|
)
|
|
$
|
15,365,014,351
|
|
|
$
|
4,762,895,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
See attached Encumbrances
Reconciliation
|
S-13
EQUITY
RESIDENTIAL
Schedule III - Real Estate and Accumulated
Depreciation
December 31, 2010
NOTES:
|
|
|
(A) |
|
The balance of furniture & fixtures included in the
total investment in real estate amount was $1,231,391,664 as of
December 31, 2010. |
|
(B) |
|
The cost, net of accumulated depreciation, for Federal Income
Tax purposes as of December 31, 2010 was approximately
$11.1 billion. |
|
(C) |
|
The life to compute depreciation for building is 30 years,
for building improvements ranges from 5 to 10 years, for
furniture & fixtures and replacements is 5 years,
and for in-place leases is the average remaining term of each
respective lease. |
|
(D) |
|
This asset consists of various acquisition dates and largely
represents furniture, fixtures and equipment, leasehold
improvements and capitalized software costs owned by the
Management Business, which are generally depreciated over
periods ranging from 3 to 7 years. |
|
(E) |
|
Primarily represents capital expenditures for major maintenance
and replacements incurred subsequent to each propertys
acquisition date. |
|
(F) |
|
Represents land and/or
construction-in-progress
on projects either held for future development or projects
currently under development. |
|
(G) |
|
A portion or all of these properties includes commercial space
(retail, parking and/or office space). |
|
(H) |
|
Total properties and units exclude the Military Housing
consisting of two properties and 4,738 units. |
|
(I) |
|
through (L) See Encumbrances Reconciliation schedule. |
|
(M) |
|
Boot property for Freddie Mac tax-exempt bond pool. |
S-14
EXHIBIT INDEX
The exhibits listed below are filed as part of this report.
References to exhibits or other filings under the caption
Location indicate that the exhibit or other filing
has been filed, that the indexed exhibit and the exhibit
referred to are the same and that the exhibit referred to is
incorporated by reference. The Commission file number for our
Exchange Act filings referenced below is 1-12252.
|
|
|
|
|
|
|
Exhibit
|
|
|
Description
|
|
Location
|
|
|
3.1
|
|
|
Articles of Restatement of Declaration of Trust of Equity
Residential dated December 9, 2004.
|
|
Included as Exhibit 3.1 to the Companys Form
10-K for the
year ended December 31, 2004.
|
|
3.2
|
|
|
Seventh Amended and Restated Bylaws of Equity Residential,
effective as of December 14, 2010.
|
|
Included as Exhibit 3.1 to the Companys Form
8-K dated
and filed on December 14, 2010.
|
|
4.1
|
|
|
Indenture, dated October 1, 1994, between the Operating
Partnership and The Bank of New York Mellon Trust Company, N.A.,
as successor trustee (Indenture).
|
|
Included as Exhibit 4(a) to the Operating Partnerships
Form S-3 filed on October 7, 1994.
|
|
4.2
|
|
|
First Supplemental Indenture to Indenture, dated as of September
9, 2004.
|
|
Included as Exhibit 4.2 to the Operating Partnerships Form
8-K, filed on September 10, 2004.
|
|
4.3
|
|
|
Second Supplemental Indenture to Indenture, dated as of August
23, 2006.
|
|
Included as Exhibit 4.1 to the Operating Partnerships Form
8-K dated August 16, 2006, filed on August 23, 2006.
|
|
4.4
|
|
|
Third Supplemental Indenture to Indenture, dated as of June 4,
2007.
|
|
Included as Exhibit 4.1 to the Operating Partnerships Form
8-K dated May 30, 2007, filed on June 1, 2007.
|
|
4.5
|
|
|
Terms Agreement regarding 6.95% Notes due March 2,
2011.
|
|
Included as Exhibit 1 to the Operating Partnerships Form
8-K, filed on March 2, 2001.
|
|
4.6
|
|
|
Terms Agreement regarding 6.625% Notes due March 15,
2012.
|
|
Included as Exhibit 1 to the Operating Partnerships Form
8-K, filed on March 14, 2002.
|
|
4.7
|
|
|
Form of 5.50% Note due October 1, 2012.
|
|
Included as Exhibit 4.2 to the Operating Partnerships Form
8-K dated May 30, 2007, filed on June 1, 2007.
|
|
4.8
|
|
|
Form of 5.2% Note due April 1, 2013.
|
|
Included as Exhibit 4 to the Operating Partnerships Form
8-K, filed on March 19, 2003.
|
|
4.9
|
|
|
Form of 5.25% Note due September 15, 2014.
|
|
Included as Exhibit 4.1 to the Operating Partnerships Form
8-K, filed on September 10, 2004.
|
|
4.10
|
|
|
Terms Agreement regarding 6.63% (subsequently remarketed to a
6.584% fixed rate) Notes due April 13, 2015.
|
|
Included as Exhibit 1 to the Operating Partnerships Form
8-K, filed on April 13, 1998.
|
|
4.11
|
|
|
Terms Agreement regarding 5.125% Notes due
March 15, 2016.
|
|
Included as Exhibit 1.1 to the Operating Partnerships Form
8-K, filed on September 13, 2005.
|
|
4.12
|
|
|
Form of 5.375% Note due August 1, 2016.
|
|
Included as Exhibit 4.1 to the Operating Partnerships Form
8-K dated January 11, 2006, filed on January 18, 2006.
|
|
4.13
|
|
|
Form of 5.75% Note due June 15, 2017.
|
|
Included as Exhibit 4.3 to the Operating Partnerships Form
8-K dated May 30, 2007, filed on June 1, 2007.
|
|
4.14
|
|
|
Terms Agreement regarding
71/8% Notes
due October 15, 2017.
|
|
Included as Exhibit 1 to the Operating Partnerships Form
8-K, filed on October 9, 1997.
|
|
4.15
|
|
|
Form of 4.75% Note due July 15, 2020.
|
|
Included as Exhibit 4.1 to the Operating Partnerships Form
8-K dated July 12, 2010, filed on July 15, 2010.
|
|
4.16
|
|
|
Terms Agreement regarding 7.57% Notes due August 15,
2026.
|
|
Included as Exhibit 1 to the Operating Partnerships Form
8-K, filed on August 13, 1996.
|
|
4.17
|
|
|
Form of 3.85% Exchangeable Senior Notes due August 15, 2026.
|
|
Included as Exhibit 4.2 to the Operating Partnerships Form
8-K dated August 16, 2006, filed on August 23, 2006.
|
|
10.1
|
|
|
Sixth Amended and Restated Agreement of Limited Partnership for
ERP Operating Limited Partnership dated as of March 12, 2009.
|
|
Included as Exhibit 10.1 to the Companys Form
8-K dated
March 12, 2009, filed on March 18, 2009.
|
|
10.2
|
*
|
|
Noncompetition Agreement (Zell).
|
|
Included as an exhibit to the Companys Form S-11
Registration Statement, File No. 33-63158.
|
|
10.3
|
*
|
|
Noncompetition Agreement (Spector).
|
|
Included as an exhibit to the Companys Form S-11
Registration Statement, File No. 33-63158.
|
|
|
|
|
|
|
|
Exhibit
|
|
|
Description
|
|
Location
|
|
|
10.4
|
*
|
|
Form of Noncompetition Agreement (other officers).
|
|
Included as an exhibit to the Companys Form S-11
Registration Statement, File No. 33-63158.
|
|
10.5
|
|
|
Revolving Credit Agreement dated as of February 28, 2007 among
ERP Operating Limited Partnership, Bank of America, N.A., as
administrative agent, JP Morgan Chase Bank, N.A., as syndication
agent, Banc of America Securities LLC and J.P. Morgan
Securities Inc., as joint lead arrangers and joint book runners,
SunTrust Bank, Wachovia Bank, National Association, Wells Fargo
Bank, N.A., LaSalle Bank National Association, The Royal Bank of
Scotland plc, and US Bank National Association, as
co-documentation agents, and a syndicate of other banks (the
Credit Agreement).
|
|
Attached herein.
|
|
10.6
|
|
|
Guaranty of Payment made as of February 28, 2007 between Equity
Residential and Bank of America, N.A., as administrative agent
for the banks party to the Credit Agreement.
|
|
Included as Exhibit 10.2 to the Companys Form 8-K dated
February 28, 2007, filed on March 5, 2007.
|
|
10.7
|
|
|
Amendment to Revolving Credit Agreement.
|
|
Included as Exhibit 10.1 to the Companys Form 10-Q for the
quarterly period ended March 31, 2007.
|
|
10.8
|
|
|
Credit Agreement dated as of October 5, 2007 among ERP Operating
Limited Partnership, Bank of America, N.A., as administrative
agent, JPMorgan Chase Bank, N.A., as syndication agent, Banc of
America Securities LLC, as joint lead arranger and joint book
runner, J.P. Morgan Securities Inc., as joint lead arranger
and joint book runner, Citicorp North America Inc., Deutsche
Bank Securities Inc., Regions Bank, The Royal Bank of Scotland
plc, and U.S. Bank National Association, as documentation
agents, and a syndicate of other banks (the Term Loan
Agreement).
|
|
Attached herein.
|
|
10.9
|
|
|
Guaranty of Payment made as of October 5, 2007 between Equity
Residential and Bank of America, N.A., as administrative agent
for the lenders party to the Term Loan Agreement.
|
|
Included as Exhibit 10.2 to the Companys Form 8-K dated
October 5, 2007, filed on October 11, 2007.
|
|
10.10
|
|
|
Amended and Restated Limited Partnership Agreement of Lexford
Properties, L.P.
|
|
Included as Exhibit 10.16 to the Companys
Form 10-K
for the year ended December 31, 1999.
|
|
10.11
|
*
|
|
Equity Residential Second Restated 2002 Share Incentive
Plan dated December 10, 2008.
|
|
Included as Exhibit 10.15 to the Companys
Form 10-K
for the year ended December 31, 2008.
|
|
10.12
|
*
|
|
First Amendment to Second Restated 2002 Share Incentive
Plan.
|
|
Included as Exhibit 10.1 to the Companys Form
10-Q for the
quarterly period ended September 30, 2010.
|
|
10.13
|
*
|
|
Equity Residential Amended and Restated 1993 Share Option
and Share Award Plan.
|
|
Included as Exhibit 10.11 to the Companys
Form 10-K
for the year ended December 31, 2001.
|
|
10.14
|
*
|
|
First Amendment to Equity Residential 1993 Share Option and
Share Award Plan.
|
|
Included as Exhibit 10.1 to the Companys Form 10-Q for the
quarterly period ended June 30, 2003.
|
|
10.15
|
*
|
|
Second Amendment to Equity Residential 1993 Share Option
and Share Award Plan.
|
|
Included as Exhibit 10.20 to the Companys
Form 10-K
for the year ended December 31, 2006.
|
|
10.16
|
*
|
|
Third Amendment to Equity Residential 1993 Share Option and
Share Award Plan.
|
|
Included as Exhibit 10.1 to the Companys Form 10-Q for the
quarterly period ended June 30, 2007.
|
|
10.17
|
*
|
|
Fourth Amendment to Equity Residential 1993 Share Option
and Share Award Plan.
|
|
Included as Exhibit 10.2 to the Companys Form 10-Q for the
quarterly period ended September 30, 2008.
|
|
10.18
|
*
|
|
Fifth Amendment to Equity Residential 1993 Share Option and
Share Award Plan dated December 10, 2008.
|
|
Included as Exhibit 10.21 to the Companys
Form 10-K
for the year ended December 31, 2008.
|
|
10.19
|
*
|
|
Form of Change in Control Agreement between the Company and
other executive officers.
|
|
Included as Exhibit 10.13 to the Companys
Form 10-K
for the year ended December 31, 2001.
|
|
|
|
|
|
|
|
Exhibit
|
|
|
Description
|
|
Location
|
|
|
10.20
|
*
|
|
Form of First Amendment to Amended and Restated Change in
Control/Severance Agreement with each executive officer.
|
|
Included as Exhibit 10.1 to the Companys Form 10-Q for the
quarterly period ended March 31, 2009.
|
|
10.21
|
*
|
|
Form of Indemnification Agreement between the Company and each
trustee and executive officer.
|
|
Included as Exhibit 10.18 to the Companys
Form 10-K
for the year ended December 31, 2003.
|
|
10.22
|
*
|
|
Form of Letter Agreement between Equity Residential and each of
David J. Neithercut, Frederick C. Tuomi, Alan W. George and
Bruce C. Strohm.
|
|
Included as Exhibit 10.3 to the Companys Form 10-Q for the
quarterly period ended September 30, 2008.
|
|
10.23
|
*
|
|
Form of Executive Retirement Benefits Agreement.
|
|
Included as Exhibit 10.24 to the Companys
Form 10-K
for the year ended December 31, 2006.
|
|
10.24
|
*
|
|
Retirement Benefits Agreement between Samuel Zell and the
Company dated October 18, 2001.
|
|
Included as Exhibit 10.18 to the Companys
Form 10-K
for the year ended December 31, 2001.
|
|
10.25
|
*
|
|
Amended and Restated Deferred Compensation Agreement between the
Company and Gerald A. Spector dated January 1, 2002.
|
|
Included as Exhibit 10.17 to the Companys
Form 10-K
for the year ended December 31, 2001.
|
|
10.26
|
*
|
|
Change in Control Agreement dated as of March 13, 2009 by and
between Equity Residential and Mark J. Parrell, Executive Vice
President and Chief Financial Officer.
|
|
Included as Exhibit 10.2 to the Companys Form 8-K dated
March 12, 2009, filed on March 18, 2009.
|
|
10.27
|
*
|
|
Summary of Changes to Trustee Compensation.
|
|
Included as Exhibit 10.1 to the Companys Form 8-K dated
September 21, 2005, filed on September 27, 2005.
|
|
10.28
|
*
|
|
The Equity Residential Supplemental Executive Retirement Plan as
Amended and Restated effective November 1, 2008.
|
|
Included as Exhibit 10.4 to the Companys Form 10-Q for the
quarterly period ended September 30, 2008.
|
|
10.29
|
*
|
|
Amendment to the Equity Residential Supplemental Executive
Retirement Plan.
|
|
Included as Exhibit 10.1 to the Companys Form 10-Q for the
quarterly period ended June 30, 2010.
|
|
10.30
|
*
|
|
The Equity Residential Grandfathered Supplemental Executive
Retirement Plan as Amended and Restated effective January 1,
2005.
|
|
Included as Exhibit 10.2 to the Companys Form 10-Q for the
quarterly period ended March 31, 2008.
|
|
10.31
|
|
|
Amended and Restated Sales Agency Financing Agreement, dated
February 3, 2011, among the Company, the Operating Partnership
and Merrill Lynch, Pierce, Fenner & Smith Incorporated.
|
|
Included as Exhibit 1.1 to the Companys Form 8-K dated and
filed on February 3, 2011.
|
|
10.32
|
|
|
Sales Agency Financing Agreement, dated February 3, 2011, among
the Company, the Operating Partnership and BNY Mellon Capital
Markets, LLC.
|
|
Included as Exhibit 1.2 to the Companys Form 8-K dated and
filed on February 3, 2011.
|
|
10.33
|
|
|
Amended and Restated Sales Agency Financing Agreement, dated
February 3, 2011, among the Company, the Operating Partnership
and J.P. Morgan Securities LLC.
|
|
Included as Exhibit 1.3 to the Companys Form 8-K dated and
filed on February 3, 2011.
|
|
10.34
|
|
|
Amended and Restated Sales Agency Financing Agreement, dated
February 3, 2011, among the Company, the Operating Partnership
and Morgan Stanley & Co. Incorporated.
|
|
Included as Exhibit 1.4 to the Companys Form 8-K dated and
filed on February 3, 2011.
|
|
12
|
|
|
Computation of Ratio of Earnings to Combined Fixed Charges.
|
|
Attached herein.
|
|
21
|
|
|
List of Subsidiaries of Equity Residential.
|
|
Attached herein.
|
|
23.1
|
|
|
Consent of Ernst & Young LLP.
|
|
Attached herein.
|
|
24
|
|
|
Power of Attorney.
|
|
See the signature page to this report.
|
|
31.1
|
|
|
Certification of David J. Neithercut, Chief Executive Officer.
|
|
Attached herein.
|
|
31.2
|
|
|
Certification of Mark J. Parrell, Chief Financial Officer.
|
|
Attached herein.
|
|
|
|
|
|
|
|
Exhibit
|
|
|
Description
|
|
Location
|
|
|
32.1
|
|
|
Certification Pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002, of David J. Neithercut, Chief Executive Officer of the
Company.
|
|
Attached herein.
|
|
32.2
|
|
|
Certification Pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002, of Mark J. Parrell, Chief Financial Officer of the Company.
|
|
Attached herein.
|
|
101
|
|
|
XBRL (Extensible Business Reporting Language). The following
materials from Equity Residentials Annual Report on Form
10-K for the
year ended December 31, 2010, formatted in XBRL: (i)
consolidated balance sheets, (ii) consolidated statements of
operations, (iii) consolidated statements of cash flows, (iv)
consolidated statements of changes in equity and (v) notes to
consolidated financial statements. As provided in Rule 406T of
Regulation S-T, this information is furnished and not filed for
purposes of Sections 11 and 12 of the Securities Act of 1933 and
Section 18 of the Securities Exchange Act of 1934.
|
|
Attached herein.
|
|
|
|
* |
|
Management contracts and compensatory plans or arrangements
filed as exhibits to this report are identified by an asterisk. |