Continued Strong Demand and Improved Delinquency Drives Results Above Expectations

Equity Residential (NYSE:EQR) today reported results for the quarter ended March 31, 2023.

First Quarter 2023 Results

All per share results are reported as available to common shares/units on a diluted basis.


	Quarter Ended March 31,
	2023		2022		$ Change		% Change
Earnings Per Share (EPS)	$	0.56	$	0.19	$	0.37	194.7	%
Funds from Operations (FFO) per share	$	0.85	$	0.77	$	0.08	10.4	%
Normalized FFO per share	$	0.87	$	0.77	$	0.10	13.0	%

"We had a very good first quarter, with our same store revenue results benefitting from continued robust demand as well as improvements in delinquency in Southern California that exceeded our expectations," said Mark J. Parrell, Equity Residential's President and CEO. "Our business continues to benefit from durable employment in our affluent renter demographic and limited competition from both new apartment supply and single family home ownership."

Recent Highlights

The Company reported a 194.7% increase in EPS, 10.4% increase in FFO per share and 13.0% increase in Normalized FFO per share during the first quarter of 2023 compared to the same period of 2022.
Same store revenue increased 9.2% for the first quarter of 2023 compared to the first quarter of 2022, which was better than anticipated due to continued healthy demand and lower than anticipated Bad Debt, Net.
Same store expense growth for the first quarter of 2023 compared to the first quarter of 2022 was 7.2%, which was higher than expected primarily due to repairs and maintenance expenses resulting from the severe California rain storms and increased property-related legal and administrative expenses. Despite this elevated level, the Company believes it will still attain 4.0%-5.0% same store expense growth for 2023 as a result of lower anticipated growth in the second half of the year.
During the first quarter of 2023, the Company sold a small portfolio of seven properties in Los Angeles, consisting of 247 apartment units, for approximately $135.3 million. Subsequent to the end of the first quarter of 2023, the Company purchased a 262-unit apartment property in Atlanta for approximately $78.6 million.
The Company raised its annual common share dividend by 6.0% reflecting the current strength of the Company's business and confidence in the prospects for the business going forward.

Results Per Share

The change in EPS for the quarter ended March 31, 2023 compared to the same period of 2022 is due primarily to higher property sale gains and lower depreciation expense in the current period, the various adjustment items listed on page 25 of this release and the items described below.

The per share change in FFO for the quarter ended March 31, 2023 compared to the same period of 2022 is due primarily to the various adjustment items listed on page 25 of this release and the items described below.

The per share change in Normalized FFO is due primarily to:

	Positive/(Negative) Impact
	First Quarter 2023 vs. First Quarter 2022
Residential same store NOI	$	0.10
Non-Residential same store NOI		0.01
Lease-Up NOI		0.01
2023 and 2022 transaction activity impact on NOI, net		(0.01	)
Interest expense, net		0.01
Other items ⁽¹⁾		(0.02	)
Net	$	0.10

⁽¹⁾

Primarily represents the negative impact from property damage associated with the California rain storms.

The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 27 through 32 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 6, 29 and 30 of this release.

Same Store Results

The following table shows the total same store results for the periods presented.

	First Quarter 2023 vs. First Quarter 2022	First Quarter 2023 vs. Fourth Quarter 2022
Apartment Units	76,952	78,331
Physical Occupancy	95.9% vs. 96.4%	95.9% vs. 95.8%

Revenues	9.2%	0.8%
Expenses	7.2%	7.8%
NOI	10.2%	(2.3%)

On page 10 of this release, the Company has provided a breakout of Residential and Non-Residential same store results with definitions that can be found on page 31 of this release. Non-Residential operations account for approximately 3.8% of total revenues for the quarter ended March 31, 2023.

The following table reflects the detail of the change in Same Store Residential Revenues, which is presented on a GAAP basis showing Leasing Concessions on a straight-line basis.

	First Quarter 2023 vs. First Quarter 2022		First Quarter 2023 vs. Fourth Quarter 2022
	% Change		% Change
Same Store Residential Revenues-comparable period
Lease rates	9.2	%	0.7	%
Leasing Concessions	0.3	%	0.0	%
Vacancy gain (loss)	(0.7	%)	0.1	%
Bad Debt, Net ⁽¹⁾	(0.2	%)	0.1	%
Other ⁽²⁾	0.6	%	(0.2	%)
Same Store Residential Revenues-current period	9.2	%	0.7	%

⁽¹⁾		Change in rental income due to bad debt write-offs and reserves, net of amounts (including governmental rental assistance payments) collected on previously written-off or reserved accounts. Comparable period changes in quarterly Bad Debt, Net will be volatile throughout 2023 primarily due to the timing of governmental rental assistance received in 2022. See pages 3, 12 and 26 for more detail.
⁽²⁾		Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items.

See page 11 for detail and reconciliations of Same Store Residential Revenues on a GAAP basis to Same Store Residential Revenues with Leasing Concessions on a cash basis.

Residential Same Store Operating Statistics

The following table includes select operating metrics for Residential Same Store Properties (for 76,952 same store apartment units):

	April 2023 (1)		Q1 2023		Q4 2022
Physical Occupancy	96.0	%	95.9	%	95.8	%
Percentage of Residents Renewing by quarter/month	58.0	%	57.7	%	56.5	%

New Lease Change	1.6	%	1.3	%	2.2	%
Renewal Rate Achieved	5.7	%	6.2	%	8.5	%
Blended Rate	4.0	%	3.9	%	5.6	%

⁽¹⁾

April 2023 results are preliminary.

Improving Delinquency Conditions

The Company's 2023 guidance published February 9, 2023 assumed that full year same store revenue would be negatively impacted by approximately 0.9% at the midpoint due to continuing elevated levels of forecasted Bad Debt, Net as a result of local government restrictions on evictions in California and significantly reduced levels of governmental rental assistance payments. To date, the Company has experienced better payment and move-out activity related to delinquent residents than assumed in its February 2023 guidance. This is offsetting the declines in governmental rental assistance more than the Company originally expected, and this improvement will be taken into account later this year when the Company customarily adjusts guidance.

Investment Activity

The Company did not acquire any operating properties during the first quarter of 2023, but subsequent to the end of the quarter, the Company acquired a recently completed 262-unit apartment property in Atlanta, which is currently in lease up, for approximately $78.6 million at a stabilized Acquisition Cap Rate of 6.6% (5.7% when removing certain real estate tax benefits that will reduce over time).

During the first quarter of 2023, the Company sold a small portfolio of seven properties in Los Angeles, consisting of 247 apartment units, for an aggregate sale price of approximately $135.3 million at a weighted average Disposition Yield of 5.3%, generating an Unlevered IRR of 8.7%.

Second Quarter 2023 Guidance

The Company has established guidance ranges for the second quarter of 2023 EPS, FFO per share and Normalized FFO per share as listed below:

		Q2 2023 Guidance
EPS		$0.59 to $0.63
FFO per share		$0.90 to $0.94
Normalized FFO per share		$0.91 to $0.95

The difference between the first quarter of 2023 actual EPS of $0.56 and the second quarter of 2023 EPS guidance midpoint of $0.61 is due primarily to the items described below.

The difference between the first quarter of 2023 actual FFO of $0.85 per share and the second quarter of 2023 FFO guidance midpoint of $0.92 per share is due primarily to the items described below.

The difference between the first quarter of 2023 actual Normalized FFO of $0.87 per share and the second quarter of 2023 Normalized FFO guidance midpoint of $0.93 per share is due primarily to higher expected Residential same store NOI and lower expected property damage from California rain storms.

About Equity Residential

Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. Equity Residential owns or has investments in 301 properties consisting of 79,351 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin. For more information on Equity Residential, please visit our website at www.equityapartments.com.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential's management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, government regulations (such as eviction moratoriums) and competition. These and other risks and uncertainties are described under the heading "Risk Factors" in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityapartments.com. Many of these uncertainties and risks are difficult to predict and beyond management's control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

A live webcast of the Company's conference call discussing these results will take place tomorrow, Wednesday, April 26, 2023 at 10:00 a.m. CT. Please visit the Investor section of the Company's website at www.equityapartments.com for the webcast link.

Equity Residential Consolidated Statements of Operations (Amounts in thousands except per share data) (Unaudited)

	Quarter Ended March 31,
	2023			2022
REVENUES
Rental income	$	705,088		$	653,348

EXPENSES
Property and maintenance		137,579			124,874
Real estate taxes and insurance		106,669			100,688
Property management		31,466			30,747
General and administrative		16,165			17,238
Depreciation		215,830			229,961
Total expenses		507,709			503,508

Net gain (loss) on sales of real estate properties		100,209			(102	)

Operating income		297,588			149,738

Interest and other income		1,538			3,528
Other expenses		(8,995	)		(3,056	)
Interest:
Expense incurred, net		(66,401	)		(72,792	)
Amortization of deferred financing costs		(1,979	)		(2,077	)
Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of land parcels		221,751			75,341
Income and other tax (expense) benefit		(298	)		(282	)
Income (loss) from investments in unconsolidated entities		(1,382	)		(1,261	)
Net income		220,071			73,798
Net (income) loss attributable to Noncontrolling Interests:
Operating Partnership		(7,059	)		(2,394	)
Partially Owned Properties		(977	)		(639	)
Net income attributable to controlling interests		212,035			70,765
Preferred distributions		(772	)		(772	)
Net income available to Common Shares	$	211,263		$	69,993

Earnings per share – basic:
Net income available to Common Shares	$	0.56		$	0.19
Weighted average Common Shares outstanding		378,341			375,509

Earnings per share – diluted:
Net income available to Common Shares	$	0.56		$	0.19
Weighted average Common Shares outstanding		390,664			389,628

Distributions declared per Common Share outstanding	$	0.6625		$	0.625

Equity Residential Consolidated Statements of Funds From Operations and Normalized Funds From Operations (Amounts in thousands except per share data) (Unaudited)

	Quarter Ended March 31,
	2023			2022
Net income	$	220,071		$	73,798
Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties		(977	)		(639	)
Preferred distributions		(772	)		(772	)
Net income available to Common Shares and Units		218,322			72,387

Adjustments:
Depreciation		215,830			229,961
Depreciation – Non-real estate additions		(1,156	)		(1,052	)
Depreciation – Partially Owned Properties		(545	)		(893	)
Depreciation – Unconsolidated Properties		632			620
Net (gain) loss on sales of unconsolidated entities - operating assets		—			(9	)
Net (gain) loss on sales of real estate properties		(100,209	)		102
FFO available to Common Shares and Units		332,874			301,116

Adjustments (see note for additional detail):
Write-off of pursuit costs		1,332			1,463
Non-operating asset (gains) losses		714			(1,642	)
Other miscellaneous items		6,292			(371	)
Normalized FFO available to Common Shares and Units	$	341,212		$	300,566

FFO	$	333,646		$	301,888
Preferred distributions		(772	)		(772	)
FFO available to Common Shares and Units	$	332,874		$	301,116
FFO per share and Unit – basic	$	0.85		$	0.78
FFO per share and Unit – diluted	$	0.85		$	0.77

Normalized FFO	$	341,984		$	301,338
Preferred distributions		(772	)		(772	)
Normalized FFO available to Common Shares and Units	$	341,212		$	300,566
Normalized FFO per share and Unit – basic	$	0.88		$	0.78
Normalized FFO per share and Unit – diluted	$	0.87		$	0.77

Weighted average Common Shares and Units outstanding – basic		389,851			387,397
Weighted average Common Shares and Units outstanding – diluted		390,664			389,628

Note: See Adjustments from FFO to Normalized FFO for additional detail regarding the adjustments from FFO to Normalized FFO. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.

Equity Residential Consolidated Balance Sheets (Amounts in thousands except for share amounts) (Unaudited)

	March 31,			December 31,
	2023			2022
ASSETS
Land	$	5,559,883		$	5,580,878
Depreciable property		22,343,556			22,334,369
Projects under development		132,341			112,940
Land held for development		60,665			60,567
Investment in real estate		28,096,445			28,088,754
Accumulated depreciation		(9,207,194	)		(9,027,850	)
Investment in real estate, net		18,889,251			19,060,904
Investments in unconsolidated entities¹		292,279			279,024
Cash and cash equivalents		133,460			53,869
Restricted deposits		85,625			83,303
Right-of-use assets		466,911			462,956
Other assets		235,000			278,206
Total assets	$	20,102,526		$	20,218,262

LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net	$	1,968,243		$	1,953,438
Notes, net		5,343,851			5,342,329
Line of credit and commercial paper		—			129,955
Accounts payable and accrued expenses		144,660			96,028
Accrued interest payable		49,776			66,310
Lease liabilities		314,854			308,748
Other liabilities		283,418			306,941
Security deposits		68,728			68,940
Distributions payable		258,992			244,621
Total liabilities		8,432,522			8,517,310

Commitments and contingencies

Redeemable Noncontrolling Interests – Operating Partnership		323,551			318,273
Equity:
Shareholders' equity:
Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized; 745,600 shares issued and outstanding as of March 31, 2023 and December 31, 2022		37,280			37,280
Common Shares of beneficial interest, $0.01 par value; 1,000,000,000 shares authorized; 378,898,221 shares issued and outstanding as of March 31, 2023 and 378,429,708 shares issued and outstanding as of December 31, 2022		3,789			3,784
Paid in capital		9,488,320			9,476,085
Retained earnings		1,619,131			1,658,837
Accumulated other comprehensive income (loss)		(11,232	)		(2,547	)
Total shareholders' equity		11,137,288			11,173,439
Noncontrolling Interests:
Operating Partnership		211,718			209,961
Partially Owned Properties		(2,553	)		(721	)
Total Noncontrolling Interests		209,165			209,240
Total equity		11,346,453			11,382,679
Total liabilities and equity	$	20,102,526		$	20,218,262

¹ Includes $231.7 million and $218.0 million in unconsolidated development projects as of March 31, 2023 and December 31, 2022, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects.

Equity Residential

Portfolio Summary

As of March 31, 2023

			% of Stabilized		Average
		Apartment	Budgeted		Rental
Markets/Metro Areas	Properties	Units	NOI		Rate
Established Markets:
Los Angeles	59	15,012	17.8	%	$	2,792
Orange County	13	4,028	5.3	%		2,717
San Diego	12	2,878	4.0	%		2,936
Subtotal – Southern California	84	21,918	27.1	%		2,797

San Francisco	44	11,790	16.0	%		3,244
Washington, D.C.	47	14,716	15.4	%		2,539
New York	34	8,536	14.1	%		4,430
Boston	27	7,170	11.6	%		3,409
Seattle	46	9,526	11.0	%		2,579
Subtotal – Established Markets	282	73,656	95.2	%		3,039

Expansion Markets:
Denver	8	2,498	2.6	%		2,383
Atlanta	4	1,215	1.1	%		2,163
Dallas/Ft. Worth	4	1,241	0.7	%		1,879
Austin	3	741	0.4	%		1,807
Subtotal – Expansion Markets	19	5,695	4.8	%		2,153
Total	301	79,351	100.0	%	$	2,976


	Properties	Apartment Units
Wholly Owned Properties	286	76,237
Partially Owned Properties – Consolidated	15	3,114
	301	79,351

Note: Projects under development are not included in the Portfolio Summary until construction has been completed.

Equity Residential

Portfolio Rollforward Q1 2023 ($ in thousands)

	Properties		Apartment Units		Sales Price			Disposition Yield
12/31/2022	308		79,597
Dispositions:
Consolidated Rental Properties	(7	)	(247	)	$	(135,300	)	(5.3	%)

Configuration Changes	—		1
3/31/2023	301		79,351

Equity Residential

First Quarter 2023 vs. First Quarter 2022 Same Store Results/Statistics Including 76,952 Same Store Apartment Units ($ in thousands except for Average Rental Rate)

First Quarter 2023															First Quarter 2022
	Residential				% Change		Non- Residential		% Change		Total		% Change			Residential			Non- Residential		Total
Revenues	$	656,513		(1)	9.2	%	$	25,162	9.2	%	$	681,675	9.2	%	Revenues	$	601,323		$	23,043	$	624,366
Expenses	$	220,069			7.2	%	$	6,721	8.8	%	$	226,790	7.2	%	Expenses	$	205,360		$	6,175	$	211,535
NOI	$	436,444			10.2	%	$	18,441	9.3	%	$	454,885	10.2	%	NOI	$	395,963		$	16,868	$	412,831

Average Rental Rate	$	2,968			9.8	%									Average Rental Rate	$	2,703
Physical Occupancy		95.9	%		(0.5	%)									Physical Occupancy		96.4	%
Turnover		9.0	%		0.1	%									Turnover		8.9	%

First Quarter 2023 vs. Fourth Quarter 2022 Same Store Results/Statistics Including 78,331 Same Store Apartment Units ($ in thousands except for Average Rental Rate)

First Quarter 2023															Fourth Quarter 2022
	Residential				% Change		Non- Residential		% Change		Total		% Change			Residential			Non- Residential		Total
Revenues	$	669,073		(1)	0.7	%	$	26,951	3.2	%	$	696,024	0.8	%	Revenues	$	664,107		$	26,104	$	690,211
Expenses	$	224,594			7.8	%	$	7,181	6.7	%	$	231,775	7.8	%	Expenses	$	208,270		$	6,731	$	215,001
NOI	$	444,479			(2.5	%)	$	19,770	2.0	%	$	464,249	(2.3	%)	NOI	$	455,837		$	19,373	$	475,210

Average Rental Rate	$	2,972			0.7	%									Average Rental Rate	$	2,950
Physical Occupancy		95.9	%		0.1	%									Physical Occupancy		95.8	%
Turnover		9.1	%		(0.3	%)									Turnover		9.4	%

⁽¹⁾

See page 11 for Same Store Residential Revenues with Leasing Concessions reflected on a cash basis. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.

Equity Residential

Same Store Residential Revenues – GAAP to Cash Basis (1) ($ in thousands)

	First Quarter 2023 vs. First Quarter 2022						First Quarter 2023 vs. Fourth Quarter 2022
	76,952 Same Store Apartment Units						78,331 Same Store Apartment Units
	Q1 2023			Q1 2022			Q1 2023			Q4 2022
Same Store Residential Revenues (GAAP Basis)	$	656,513		$	601,323		$	669,073		$	664,107
Leasing Concessions amortized		2,073			3,913			2,511			2,183
Leasing Concessions granted		(3,889	)		(1,579	)		(3,962	)		(2,940	)
Same Store Residential Revenues with Leasing Concessions on a cash basis	$	654,697		$	603,657		$	667,622		$	663,350

% change - GAAP revenue		9.2	%					0.7	%

% change - cash revenue		8.5	%					0.6	%

⁽¹⁾		See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.

Same Store Net Operating Income By Quarter Including 76,952 Same Store Apartment Units ($ in thousands)

	Q1 2023		Q4 2022		Q3 2022		Q2 2022		Q1 2022
Same store revenues	$	681,675	$	676,011	$	671,160	$	657,582	$	624,366
Same store expenses		226,790		210,795		214,495		206,152		211,535
Same store NOI (includes Residential and Non-Residential)	$	454,885	$	465,216	$	456,665	$	451,430	$	412,831

Equity Residential

Same Store Resident/Tenant Accounts Receivable Balances Including 76,952 Same Store Apartment Units ($ in thousands)

	Residential							Non-Residential
Balance Sheet (Other assets):	March 31, 2023				December 31, 2022			March 31, 2023			December 31, 2022
Resident/tenant accounts receivable balances	$	32,408			$	34,875		$	2,414		$	2,814
Allowance for doubtful accounts		(28,430	)			(30,624	)		(1,500	)		(2,152	)
Net receivable balances	$	3,978			$	4,251		$	914		$	662

Straight-line receivable balances	$	4,861		(1)	$	3,046		$	13,607		$	13,725

⁽¹⁾		Total same store Residential Leasing Concessions granted in the first quarter of 2023 were approximately $3.9 million. The straight-line receivable balance of $4.9 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in the remainder of 2023 and the first quarter of 2024.

Same Store Residential Bad Debt Including 76,952 Same Store Apartment Units ($ in thousands)

Income Statement (Rental income) (1):	Q1 2023			Q4 2022			Q1 2022
Bad debts before governmental rental assistance	$	11,690		$	13,464		$	19,144
Governmental rental assistance received		(991	)		(2,054	)		(9,481	)
Bad Debt, Net	$	10,699		$	11,410		$	9,663

Bad Debt, Net as a % of Same Store Residential Revenues		1.6	%		1.8	%		1.6	%

⁽¹⁾

During the first quarter of 2023, the Company had increased resident payment and move-out activity. This improved activity reduced Bad Debt, Net and more than offset the decline in governmental rental assistance as compared to the Company's original expectations. See pages 2, 3 and 26 for more detail.

Equity Residential

First Quarter 2023 vs. First Quarter 2022

Same Store Residential Results/Statistics by Market

										Increase (Decrease) from Prior Year's Quarter
Markets/Metro Areas	Apartment Units	Q1 2023 % of Actual NOI		Q1 2023 Average Rental Rate		Q1 2023 Weighted Average Physical Occupancy %		Q1 2023 Turnover		Revenues			Expenses			NOI		Average Rental Rate		Physical Occupancy		Turnover
Los Angeles	14,415	17.7	%	$	2,775	95.5	%	9.9	%	6.1	%		10.7	%		4.0	%	7.6	%	(1.4	%)	1.4	%
Orange County	4,028	5.6	%		2,717	96.2	%	7.3	%	9.8	%		10.1	%		9.8	%	10.9	%	(0.9	%)	1.0	%
San Diego	2,706	3.9	%		2,899	95.4	%	9.5	%	7.2	%		4.8	%		7.9	%	8.9	%	(1.5	%)	0.6	%
Subtotal – Southern California	21,149	27.2	%		2,780	95.6	%	9.3	%	6.9	%		9.9	%		5.7	%	8.4	%	(1.3	%)	1.2	%

San Francisco	11,368	16.6	%		3,243	95.6	%	9.5	%	6.6	%		7.2	%		6.4	%	7.5	%	(0.8	%)	0.1	%
Washington, D.C.	14,400	16.0	%		2,531	96.6	%	7.3	%	6.8	%		6.0	%		7.2	%	7.1	%	(0.3	%)	(1.0	%)
New York	8,536	14.2	%		4,430	96.8	%	7.5	%	19.3	%		3.7	%		34.9	%	19.7	%	(0.3	%)	(0.7	%)
Seattle	9,525	11.5	%		2,579	95.1	%	11.1	%	8.6	%		2.9	%		11.0	%	8.0	%	0.5	%	(0.3	%)
Boston	6,700	10.0	%		3,341	95.6	%	7.9	%	9.6	%		7.3	%		10.7	%	9.9	%	(0.2	%)	0.3	%
Denver	2,498	2.7	%		2,383	96.3	%	11.1	%	8.0	%		18.2	%	(2)	3.8	%	7.4	%	0.3	%	0.5	%
Other Expansion Markets	2,776	1.8	%		1,974	94.6	%	11.4	%	5.7	%		22.7	%	(3)	(7.3	%)	7.6	%	(2.0	%)	0.6	%

Total	76,952	100.0	%	$	2,968	95.9	%	9.0	%	9.2	%	(1)	7.2	%		10.2	%	9.8	%	(0.5	%)	0.1	%

⁽¹⁾		With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 8.5% in the first quarter of 2023 compared to the first quarter of 2022. See page 11 for additional detail and reconciliations.
⁽²⁾		Expense growth is primarily due to higher real estate taxes from increased assessed property values.
⁽³⁾		High expense growth during the first quarter of 2023 is primarily due to greater variability given the small number of properties and the timing of certain expenses.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the quarter ended March 31, 2023.

Equity Residential

First Quarter 2023 vs. Fourth Quarter 2022

Same Store Residential Results/Statistics by Market

										Increase (Decrease) from Prior Quarter
Markets/Metro Areas	Apartment Units	Q1 2023 % of Actual NOI		Q1 2023 Average Rental Rate		Q1 2023 Weighted Average Physical Occupancy %		Q1 2023 Turnover		Revenues			Expenses		NOI		Average Rental Rate		Physical Occupancy		Turnover
Los Angeles	14,415	17.4	%	$	2,775	95.5	%	9.9	%	0.8	%		12.6	%	(4.0	%)	1.2	%	(0.3	%)	(0.1	%)
Orange County	4,028	5.5	%		2,717	96.2	%	7.3	%	0.6	%		7.1	%	(1.1	%)	1.2	%	(0.5	%)	(1.4	%)
San Diego	2,878	4.1	%		2,936	95.4	%	9.7	%	0.8	%		6.6	%	(0.9	%)	1.4	%	(0.6	%)	0.9	%
Subtotal – Southern California	21,321	27.0	%		2,785	95.6	%	9.4	%	0.8	%		11.0	%	(3.0	%)	1.2	%	(0.4	%)	(0.2	%)

San Francisco	11,368	16.3	%		3,243	95.6	%	9.5	%	0.5	%		7.3	%	(2.4	%)	0.5	%	0.0	%	0.1	%
Washington, D.C.	14,716	16.0	%		2,539	96.6	%	7.4	%	0.4	%		7.0	%	(2.7	%)	0.3	%	0.1	%	(1.9	%)
New York	8,536	13.9	%		4,430	96.8	%	7.5	%	1.3	%		6.9	%	(2.6	%)	1.2	%	0.1	%	(0.1	%)
Seattle	9,525	11.4	%		2,579	95.1	%	11.1	%	0.4	%		2.0	%	(0.2	%)	0.2	%	0.1	%	1.2	%
Boston	7,170	10.7	%		3,409	95.5	%	8.0	%	0.7	%		11.3	%	(3.6	%)	1.1	%	(0.4	%)	(0.4	%)
Denver	2,498	2.7	%		2,383	96.3	%	11.1	%	0.7	%		6.9	%	(1.9	%)	0.5	%	0.2	%	(0.9	%)
Other Expansion Markets	3,197	2.0	%		1,971	94.9	%	12.4	%	2.1	%		6.7	%	(2.0	%)	(0.3	%)	2.1	%	(0.6	%)

Total	78,331	100.0	%	$	2,972	95.9	%	9.1	%	0.7	%	(1)	7.8	%	(2.5	%)	0.7	%	0.1	%	(0.3	%)

⁽¹⁾		With Leasing Concessions reflected on a cash basis, Same Store Residential Revenues increased 0.6% in the first quarter of 2023 compared to the fourth quarter of 2022. See page 11 for additional detail and reconciliations.

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the quarter ended March 31, 2023.

Equity Residential

Same Store Residential Net Effective Lease Pricing Statistics For 76,952 Same Store Apartment Units

	New Lease Change (1)				Renewal Rate Achieved (1)				Blended Rate (1)
Markets/Metro Areas	Q1 2023		Q4 2022		Q1 2023		Q4 2022		Q1 2023		Q4 2022
Southern California	4.6	%	6.9	%	6.2	%	7.6	%	5.4	%	7.3	%
San Francisco	2.0	%	(0.7	%)	6.1	%	7.1	%	4.3	%	3.0	%
Washington, D.C.	2.4	%	2.9	%	6.0	%	8.9	%	4.4	%	6.2	%
New York

Equity Residential Reports First Quarter 2023 Results