Equity Residential Reports 2009 Results

Equity Residential (NYSE: EQR) today reported results for the quarter and year ended December 31, 2009. All per share results are reported on a fully-diluted basis.

"2009 was a difficult year for our national economy, the apartment business and for Equity Residential,” said David J. Neithercut, Equity Residential’s President and CEO. "However, despite the highest unemployment levels in recent history, our same store revenues were down only 2.9% for the year, which is a credit to our people, our properties and our platform. We are excited about our prospects as fundamentals improve in the year ahead.”

Fourth Quarter 2009

For the fourth quarter of 2009, the company reported earnings of $0.15 per share compared to a loss of $0.15 per share in the fourth quarter of 2008. The difference is primarily due to the fourth quarter 2008 impairment charge on various land parcels of $116.4 million, or $0.40 per share, partially offset by the $18.5 million, or $0.06 per share, debt extinguishment gain in the same period and the previously announced charges of approximately $24.9 million, or $0.09 per share, in the fourth quarter of 2009 related to the tender offers for certain of the company’s notes.

FFO (funds from operations) for the quarter ended December 31, 2009 was $0.43 per share compared to $0.27 per share in the same period of 2008. Excluding the tender offer related charge, the company’s fourth quarter 2009 FFO was $0.52 per share.

Excluding the one-time items discussed above, the difference between the company’s fourth quarter 2009 FFO of $0.52 per share and the fourth quarter 2008 FFO of $0.61 per share is primarily due to the negative impact of:

• approximately $0.06 per share from lower net operating income (NOI) from the company’s same store portfolio; and
• approximately $0.04 per share from dilution from the company’s 2008 and 2009 transaction activity, partially offset by the positive impact of NOI from lease-up activity.

Year Ended December 31, 2009

For the year ended December 31, 2009, the company reported earnings of $1.27 per share compared to $1.46 per share for 2008.

FFO for the year ended December 31, 2009 was $2.12 per share compared to $2.13 per share in the same period of 2008.

Same Store Results

On a same store fourth quarter to fourth quarter comparison, which includes 117,683 apartment units, revenues decreased 4.7%, expenses decreased 1.9% and NOI decreased 6.3%. The decrease in same store revenues was primarily driven by a 4.5% decrease in average rental rates. The decrease in same store expenses was primarily driven by decreases in real estate taxes and payroll.

On a same store year over year comparison, which includes 113,598 apartment units, revenues decreased 2.9%, expenses decreased 0.1% and NOI decreased 4.6%. The decrease in same store revenues was due to a 2.2% decrease in average rental rates and a 0.7% decrease in average occupancy to 93.8%.

Acquisitions/Dispositions

During the fourth quarter and for the full year 2009, the company acquired two properties, consisting of 566 units, for an aggregate purchase price of $145.0 million at a weighted average capitalization (cap) rate of 5.9%, as well as a long-term leasehold interest in a land parcel located in Manhattan for a purchase price of $11.5 million.

Since the end of 2009, the company acquired five properties, consisting of 1,174 units, for an aggregate purchase price of $495.6 million at a weighted average cap rate of 5.7%. This includes the acquisition of the two properties located in Manhattan which was previously announced on February 1, 2010.

"We have been very patient for the last several years, waiting for the right opportunities to acquire assets and grow our portfolio in core markets,” said Mr. Neithercut. "We have recently been presented with such opportunities and are delighted to have acquired several extremely well located, premier assets at significant discounts to replacement cost. Our access to capital and our ability to execute large, complex transactions will be competitive advantages in 2010.”

During the fourth quarter of 2009, the company sold seven consolidated properties, consisting of 2,236 apartment units, for an aggregate sale price of $170.7 million at a weighted average cap rate of 7.8% generating an unlevered internal rate of return (IRR) of 10.6%.

During 2009, the company sold 54 consolidated properties, consisting of 11,055 apartment units, for an aggregate sale price of $905.2 million at a weighted average cap rate of 7.6% generating an unlevered IRR of 9.9%.

Debt Tender Offer Results

During the fourth quarter of 2009, the company purchased approximately $344.3 million of certain of its non-exchangeable and exchangeable notes in a debt tender offer. The aggregate consideration for the notes accepted for purchase was approximately $366.2 million. These purchases are described in more detail in the supplemental information on page 17 of this press release.

At-The-Market (ATM) Share Offering Program

During the fourth quarter of 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. In addition, during the first quarter of 2010, the company has issued approximately 1.1 million common shares at an average price of $33.87 per share for total consideration of approximately $35.8 million. Cumulative to date, the company has issued approximately 4.6 million common shares at an average price of $35.03 per share for total consideration of approximately $159.5 million under this program.

First Quarter and Full Year 2010 Guidance

The company has established an FFO guidance range of $0.48 to $0.52 per share for the first quarter of 2010. The difference between the company’s fourth-quarter 2009 FFO of $0.52 per share, excluding the tender offer related charge, and the midpoint of the first quarter 2010 FFO guidance range is primarily the result of the following:

• the negative impact from lower same store NOI of approximately $0.03 per share sequentially from the fourth quarter to the first quarter; and
• the positive impact of lower interest expense of approximately $0.01 per share.

The company has established an FFO guidance range of $1.95 to $2.15 per share for the full year 2010. The assumptions underlying this guidance can be found on page 25 of this release. The difference between the company’s full-year 2009 FFO of $2.21 per share, excluding the tender offer related charge, and the midpoint of the company’s guidance range for full year 2010 FFO is primarily the result of:

• the negative impact of lower same store NOI of approximately $0.16 per share year over year;
• the negative impact of net dilution from 2009 and 2010 transaction activity of approximately $0.11 per share;
• the positive impact of approximately $0.09 per share from the lease up of development properties; and
• the positive impact of approximately $0.03 per share from lower interest expense.

First Quarter 2010 Conference Call

Equity Residential expects to announce first quarter 2010 results on Wednesday, April 28, 2010 and host a conference call to discuss those results at 10:00 a.m. CT on Thursday, April 29, 2010.

Equity Residential is an S&P 500 company focused on the acquisition, development and management of high quality apartment properties in top U.S. growth markets. Equity Residential owns or has investments in 495 properties located in 23 states and the District of Columbia, consisting of 137,007 apartment units. For more information on Equity Residential, please visit our website at www.equityresidential.com.

Forward-Looking Statements

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

A live web cast of the company’s conference call discussing these results and outlook for 2010 will take place tomorrow, Thursday, February 4, at 10:00 a.m. Central. Please visit the Investor Information section of the company’s web site at www.equityresidential.com for the link. A replay of the web cast will be available for two weeks at this site.

Equity Residential
Consolidated Statements of Operations
(Amounts in thousands except per share data)
(Unaudited)
		Year Ended December 31,						Quarter Ended December 31,
		2009			2008			2009			2008
REVENUES
Rental income		$ 1,933,365			$ 1,964,954			$ 480,569			$ 497,801
Fee and asset management		10,346			10,715			2,418			3,318
Total revenues		1,943,711			1,975,669			482,987			501,119
EXPENSES
Property and maintenance		487,216			508,048			118,542			124,363
Real estate taxes and insurance		215,250			203,582			55,190			52,010
Property management		71,938			77,063			15,481			17,476
Fee and asset management		7,519			7,981			1,603			1,827
Depreciation		582,280			559,468			148,383			146,718
General and administrative		38,994			44,951			8,518			10,911
Impairment		11,124			116,418			-			116,418
Total expenses		1,414,321			1,517,511			347,717			469,723
Operating income		529,390			458,158			135,270			31,396
Interest and other income		16,684			33,515			830			22,477
Other expenses		(6,487	)		(5,760	)		(4,259	)		(2,874	)
Interest:
Expense incurred, net		(503,828	)		(489,513	)		(143,331	)		(129,099	)
Amortization of deferred financing costs		(12,794	)		(9,684	)		(3,477	)		(2,946	)
Income (loss) before income and other taxes, (loss)
from investments in unconsolidated entities, net
gain on sales of unconsolidated entities and land
parcels and discontinued operations		22,965			(13,284	)		(14,967	)		(81,046	)
Income and other tax (expense) benefit		(2,808	)		(5,284	)		38			653
(Loss) from investments in unconsolidated entities		(2,815	)		(107	)		(443	)		(167	)
Net gain on sales of unconsolidated entities		10,689			2,876			3,971			2,876
Net gain on sales of land parcels		-			2,976			-			-
Income (loss) from continuing operations		28,031			(12,823	)		(11,401	)		(77,684	)
Discontinued operations, net		353,998			449,236			58,712			39,451
Net income (loss)		382,029			436,413			47,311			(38,233	)
Net (income) loss attributable to Noncontrolling Interests:
Operating Partnership		(20,305	)		(26,126	)		(2,186	)		2,496
Preference Interests and Units		(9	)		(15	)		-			(4	)
Partially Owned Properties		558			(2,650	)		167			(885	)
Net income (loss) attributable to controlling interests		362,273			407,622			45,292			(36,626	)
Preferred distributions		(14,479	)		(14,507	)		(3,620	)		(3,620	)
Net income (loss) available to Common Shares		$ 347,794			$ 393,115			$ 41,672			$ (40,246	)
Earnings per share – basic:
Income (loss) from continuing operations available to Common Shares		$ 0.05			$ (0.10	)		$ (0.05	)		$ (0.29	)
Net income (loss) available to Common Shares		$ 1.27			$ 1.46			$ 0.15			$ (0.15	)
Weighted average Common Shares outstanding		273,609			270,012			275,519			271,293
Earnings per share – diluted:
Income (loss) from continuing operations available to Common Shares		$ 0.05			$ (0.10	)		$ (0.05	)		$ (0.29	)
Net income (loss) available to Common Shares		$ 1.27			$ 1.46			$ 0.15			$ (0.15	)
Weighted average Common Shares outstanding		290,105			270,012			275,519			271,293
Distributions declared per Common Share outstanding		$ 1.64			$ 1.93			$ 0.3375			$ 0.4825

Equity Residential
Consolidated Statements of Funds From Operations
(Amounts in thousands except per share data)
(Unaudited)
				Year Ended December 31,						Quarter Ended December 31,
				2009 (3)			2008 (3)			2009 (3)			2008 (3)
Net income (loss)				$ 382,029			$ 436,413			$ 47,311			$ (38,233	)
Adjustments:
	Net (income) loss attributable to Noncontrolling Interests:
		Preference Interests and Units		(9	)		(15	)		-			(4	)
		Partially Owned Properties		558			(2,650	)		167			(885	)
	Depreciation			582,280			559,468			148,383			146,718
	Depreciation – Non-real estate additions			(7,355	)		(8,269	)		(1,786	)		(2,212	)
	Depreciation – Partially Owned and Unconsolidated Properties			759			4,157			103			1,054
	Net (gain) on sales of unconsolidated entities			(10,689	)		(2,876	)		(3,971	)		(2,876	)
	Discontinued operations:
		Depreciation		18,095			43,440			505			8,254
		Net (gain) on sales of discontinued operations		(335,299	)		(392,857	)		(60,366	)		(27,805	)
		Net incremental (loss) gain on sales of condominium units		(385	)		(3,932	)		65			(1,289	)
FFO (1) (2)				629,984			632,879			130,411			82,722
Preferred distributions				(14,479	)		(14,507	)		(3,620	)		(3,620	)
FFO available to Common Shares and Units – basic (1) (2)				$ 615,505			$ 618,372			$ 126,791			$ 79,102
FFO available to Common Shares and Units – diluted (1) (2)				$ 616,128			$ 619,020			$ 126,945			$ 79,102
FFO per share and Unit – basic				$ 2.13			$ 2.15			$ 0.44			$ 0.27
FFO per share and Unit – diluted				$ 2.12			$ 2.13			$ 0.43			$ 0.27
Weighted average Common Shares and
	Units outstanding – basic			289,167			287,630			289,693			288,251
Weighted average Common Shares and
	Units outstanding – diluted			290,508			290,479			291,984			289,511

(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 units to condominiums, it simultaneously discontinues depreciation of such property.  FFO available to Common Shares and Units is 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.
(2)		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 company's real estate between periods or as compared to different companies.  FFO and 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 and 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 Company's calculation of FFO and 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.
(3)		Effective January 1, 2009, companies are required to retrospectively expense certain implied costs of the option value related to convertible debt.  As a result, net income, FFO and FFO available to Common Shares and Units – basic and diluted have all been reduced by approximately $10.6 million and $13.3 million for the years ended December 31, 2009 and 2008, respectively, and by approximately $3.4 million and $5.7 million for the quarters ended December 31, 2009 and 2008, respectively.

Equity Residential
Consolidated Balance Sheets
(Amounts in thousands except for share amounts)
(Unaudited)
					December 31,			December 31,
					2009			2008
ASSETS
Investment in real estate
	Land				$ 3,650,324			$ 3,671,299
	Depreciable property				13,893,521			13,908,594
	Projects under development				668,979			855,473
	Land held for development				252,320			254,873
Investment in real estate					18,465,144			18,690,239
	Accumulated depreciation				(3,877,564	)		(3,561,300	)
Investment in real estate, net					14,587,580			15,128,939
Cash and cash equivalents					193,288			890,794
Investments in unconsolidated entities					6,995			5,795
Deposits – restricted					352,008			152,732
Escrow deposits – mortgage					17,292			19,729
Deferred financing costs, net					46,396			53,817
Other assets					213,956			283,304
			Total assets		$ 15,417,515			$ 16,535,110
LIABILITIES AND EQUITY
Liabilities:
	Mortgage notes payable				$ 4,783,446			$ 5,036,930
	Notes, net				4,609,124			5,447,012
	Lines of credit				-			-
	Accounts payable and accrued expenses				58,537			108,463
	Accrued interest payable				101,849			113,846
	Other liabilities				272,236			289,562
	Security deposits				59,264			64,355
	Distributions payable				100,266			141,843
			Total liabilities		9,984,722			11,202,011
Commitments and contingencies
Redeemable Noncontrolling Interests – Operating Partnership					258,280			264,394
Equity:
	Shareholders' equity:
		Preferred Shares of beneficial interest, $0.01 par value;
			100,000,000 shares authorized; 1,950,925
			shares issued and outstanding as of December
			31, 2009 and 1,951,475 shares issued and
			outstanding as of December 31, 2008		208,773			208,786
		Common Shares of beneficial interest, $0.01 par value;
			1,000,000,000 shares authorized; 279,959,048
			shares issued and outstanding as of December
			31, 2009 and 272,786,760 shares issued and
			outstanding as of December 31, 2008		2,800			2,728
		Paid in capital			4,477,426			4,273,489
		Retained earnings			353,659			456,152
		Accumulated other comprehensive income (loss)			4,681			(35,799	)
			Total shareholders' equity		5,047,339			4,905,356
	Noncontrolling Interests:
		Operating Partnership			116,120			137,645
		Preference Interests and Units			-			184
		Partially Owned Properties			11,054			25,520
			Total Noncontrolling Interests		127,174			163,349
			Total equity		5,174,513			5,068,705
			Total liabilities and equity		$ 15,417,515			$ 16,535,110

Equity Residential
Portfolio Summary
As of December 31, 2009
											% of 2010			Average
								% of			Stabilized			Rental
		Markets		Properties		Units		Total Units			NOI			Rate (1)
1		DC Northern Virginia		27		9,107		6.6	%		10.1	%		$ 1,643
2		New York Metro Area		23		6,410		4.7	%		9.5	%		2,493
3		South Florida		39		13,013		9.5	%		9.2	%		1,262
4		Boston		36		6,503		4.7	%		8.4	%		2,057
5		Los Angeles		36		7,463		5.4	%		7.9	%		1,666
6		Seattle/Tacoma		47		10,645		7.8	%		6.6	%		1,234
7		San Francisco Bay Area		33		6,239		4.6	%		5.7	%		1,611
8		Phoenix		41		11,769		8.6	%		5.2	%		840
9		San Diego		14		4,491		3.3	%		5.0	%		1,610
10		Denver		23		7,963		5.8	%		4.9	%		1,002
11		Suburban Maryland		22		6,088		4.4	%		4.8	%		1,283
12		Orlando		26		8,042		5.9	%		4.4	%		968
13		Inland Empire, CA		14		4,519		3.3	%		3.6	%		1,301
14		Orange County, CA		10		3,307		2.4	%		3.3	%		1,482
15		Atlanta		23		7,157		5.2	%		3.1	%		904
16		New England (excluding Boston)		19		3,477		2.5	%		2.0	%		1,120
17		Jacksonville		12		3,951		2.9	%		1.8	%		851
18		Portland, OR		10		3,417		2.5	%		1.6	%		924
19		Tampa		9		2,878		2.1	%		1.2	%		893
20		Raleigh/Durham		6		1,584		1.2	%		0.6	%		734
		Top 20 Total		470		128,023		93.4	%		98.9	%		1,316
21		Central Valley, CA		5		804		0.6	%		0.4	%		984
22		Dallas/Ft. Worth		4		843		0.6	%		0.1	%		722
23		Other EQR		12		2,739		2.0	%		0.6	%		873
		Total		491		132,409		96.6	%		100.0	%		1,301
		Condominium Conversion		2		3		-			-			-
		Military Housing		2		4,595		3.4	%		-			-
		Grand Total		495		137,007		100.0	%		100.0	%		$ 1,301
(1) Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the month of December 2009.

Equity Residential
Portfolio as of December 31, 2009
									Properties			Units
			Wholly Owned Properties						432			118,796
			Partially Owned Properties:
				Consolidated					27			5,530
				Unconsolidated					34			8,086
			Military Housing						2			4,595
									495			137,007
Portfolio Rollforward Q4 2009
($ in thousands)
												Purchase/
						Properties			Units			(Sale) Price			Cap Rate
				9/30/2009		501			138,887
Acquisitions:
	Rental Properties					2			566			$ 145,036			5.9	%
	Land Parcel (one)					-			-			$ 11,500
Dispositions:
	Rental Properties:
		Consolidated				(7	)		(2,236	)		$ (170,710	)		7.8	%
		Unconsolidated (1)				(3	)		(702	)		$ (38,318	)		7.5	%
	Condominium Conversion Properties					-			(12	)		$ (2,235	)
Completed Developments						2			504
				12/31/2009		495			137,007
Portfolio Rollforward 2009
($ in thousands)
												Purchase/
						Properties			Units			(Sale) Price			Cap Rate
				12/31/2008		548			147,244
Acquisitions:
	Rental Properties (2)					2			566			$ 145,036			5.9	%
	Land Parcel (one)					-			-			$ 11,500
Dispositions:
	Rental Properties:
		Consolidated				(54	)		(11,055	)		$ (905,219	)		7.6	%
		Unconsolidated (1) (2)				(6	)		(1,434	)		$ (96,018	)		7.5	%
	Condominium Conversion Properties					(1	)		(62	)		$ (12,021	)
Completed Developments						6			1,866
Configuration Changes						-			(118	)
				12/31/2009		495			137,007

(1)		EQR owned a 25% interest in these unconsolidated rental properties. Sale price listed is the gross sale price.
(2)		Both the acquisition and disposition amounts do not include the Company's buyout of its partner's interest in one previously unconsolidated property. See the Partially Owned Entities schedule for additional discussion.

Equity Residential
Fourth Quarter 2009 vs. Fourth Quarter 2008
Same Store Results/Statistics
$ in thousands (except for Average Rental Rate) - 117,683 Same Store Units
			Results									Statistics
												Average
												Rental
Description			Revenues			Expenses			NOI (1)			Rate (2)			Occupancy			Turnover
Q4 2009			$ 440,421			$ 162,232			$ 278,189			$ 1,329			94.0	%		14.1	%
Q4 2008			$ 462,183			$ 165,403			$ 296,780			$ 1,392			94.2	%		15.4	%
Change			$ (21,762	)		$ (3,171	)		$ (18,591	)		$ (63	)		(0.2	%)		(1.3	%)
Change			(4.7	%)		(1.9	%)		(6.3	%)		(4.5	%)
Fourth Quarter 2009 vs. Third Quarter 2009
Same Store Results/Statistics
$ in thousands (except for Average Rental Rate) - 119,870 Same Store Units
			Results									Statistics
												Average
												Rental
Description			Revenues			Expenses			NOI (1)			Rate (2)			Occupancy			Turnover
Q4 2009			$ 450,182			$ 166,801			$ 283,381			$ 1,334			94.0	%		14.1	%
Q3 2009			$ 456,243			$ 173,054			$ 283,189			$ 1,356			93.7	%		18.4	%
Change			$ (6,061	)		$ (6,253	)		$ 192			$ (22	)		0.3	%		(4.3	%)
Change			(1.3	%)		(3.6	%)		0.1	%		(1.6	%)
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 (1)			Rate (2)			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)		The Company's 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 the operating performance of a real estate company because it is a direct measure of the actual operating results of the Company's apartment communities.
(2)		Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period.

Equity Residential
Fourth Quarter 2009 vs. Fourth Quarter 2008
Same Store Results/Statistics by Market
															Increase (Decrease) from Prior Year's Quarter
							Q4 2009			Q4 2009		Q4 2009
							% of			Average		Weighted												Average
							Actual			Rental		Average												Rental
			Markets		Units		NOI			Rate (1)		Occupancy %			Revenues			Expenses			NOI			Rate (1)			Occupancy
1			New York Metro Area		6,247		9.9	%		$ 2,534		95.7	%		(8.7	%)		2.0	%		(14.5	%)		(8.5	%)		(0.3	%)
2			DC Northern Virginia		8,781		9.9	%		1,629		94.5	%		(2.0	%)		(1.0	%)		(2.5	%)		(1.6	%)		(0.4	%)
3			South Florida		12,465		9.7	%		1,269		93.5	%		(1.4	%)		(7.2	%)		2.7	%		(2.0	%)		0.6	%
4			Los Angeles		7,064		7.8	%		1,682		94.3	%		(6.2	%)		1.5	%		(9.9	%)		(6.4	%)		0.3	%
5			Boston		5,609		7.2	%		1,949		95.4	%		1.4	%		(1.4	%)		3.0	%		0.9	%		0.5	%
6			Seattle/Tacoma		8,115		6.4	%		1,303		90.9	%		(11.7	%)		0.5	%		(17.9	%)		(8.5	%)		(3.3	%)
7			San Francisco Bay Area		5,708		6.3	%		1,646		94.3	%		(7.1	%)		(2.0	%)		(9.5	%)		(6.2	%)		(0.9	%)
8			Phoenix		10,647		5.4	%		843		92.5	%		(8.3	%)		(3.4	%)		(11.2	%)		(7.0	%)		(1.3	%)
9			San Diego		4,491		5.1	%		1,625		95.2	%		(0.9	%)		(4.9	%)		1.1	%		(3.1	%)		2.1	%
10			Denver		7,416		4.9	%		1,006		94.0	%		(3.8	%)		2.7	%		(6.9	%)		(3.9	%)		0.0	%
11			Orlando		7,525		4.6	%		960		94.0	%		(5.3	%)		(5.9	%)		(5.0	%)		(5.9	%)		0.6	%
12			Suburban Maryland		4,823		3.7	%		1,193		94.3	%		2.0	%		(2.0	%)		4.5	%		0.5	%		1.4	%
13			Inland Empire, CA		4,219		3.7	%		1,309		94.8	%		(5.2	%)		(2.8	%)		(6.4	%)		(5.4	%)		0.2	%
14			Atlanta		5,979		3.5	%		955		95.0	%		(6.0	%)		(5.5	%)		(6.3	%)		(6.3	%)		0.4	%
15			Orange County, CA		3,175		3.3	%		1,512		94.6	%		(7.2	%)		0.7	%		(10.6	%)		(6.4	%)		(0.8	%)
16			New England (excluding Boston)		3,477		2.1	%		1,121		94.0	%		(1.4	%)		(0.2	%)		(2.4	%)		(1.3	%)		(0.1	%)
17			Jacksonville		3,711		2.0	%		867		93.5	%		(2.8	%)		(7.1	%)		0.2	%		(3.1	%)		0.4	%
18			Portland, OR		3,113		1.8	%		955		94.6	%		(5.2	%)		3.3	%		(10.2	%)		(4.1	%)		(1.0	%)
19			Tampa		2,318		1.3	%		932		94.0	%		(1.6	%)		(5.5	%)		1.3	%		(1.9	%)		0.2	%
20			Raleigh/Durham		1,368		0.6	%		754		95.0	%		(4.6	%)		(2.0	%)		(6.4	%)		(5.1	%)		0.4	%
			Top 20 Markets		116,251		99.2	%		1,334		94.0	%		(4.7	%)		(1.9	%)		(6.2	%)		(4.5	%)		(0.2	%)
			All Other Markets		1,432		0.8	%		935		94.6	%		(5.2	%)		1.3	%		(9.1	%)		(5.6	%)		0.5	%
			Total		117,683		100.0	%		$ 1,329		94.0	%		(4.7	%)		(1.9	%)		(6.3	%)		(4.5	%)		(0.2	%)
(1)		Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period.

Equity Residential
Fourth Quarter 2009 vs. Third Quarter 2009
Same Store Results/Statistics by Market
															Increase (Decrease) from Prior Quarter
							Q4 2009			Q4 2009		Q4 2009
							% of			Average		Weighted												Average
							Actual			Rental		Average												Rental
			Markets		Units		NOI			Rate (1)		Occupancy %			Revenues			Expenses			NOI			Rate (1)			Occupancy
1			New York Metro Area		6,247		9.7	%		$ 2,534		95.7	%		(2.2	%)		(0.8	%)		(3.0	%)		(2.4	%)		0.3	%
2			DC Northern Virginia		8,781		9.7	%		1,629		94.5	%		(1.3	%)		(2.3	%)		(0.8	%)		(0.8	%)		(0.5	%)
3			South Florida		12,465		9.6	%		1,269		93.5	%		(0.5	%)		(9.1	%)		5.9	%		(1.0	%)		0.5	%
4			Boston		6,021		7.7	%		2,012		95.3	%		0.9	%		1.0	%		0.8	%		1.2	%		(0.3	%)
5			Los Angeles		7,191		7.7	%		1,684		94.2	%		(1.0	%)		(0.5	%)		(1.3	%)		(1.9	%)		0.9	%
6			San Francisco Bay Area		6,075		6.6	%		1,639		94.2	%		(1.5	%)		(8.3	%)		2.4	%		(2.6	%)		1.1	%
7			Seattle/Tacoma		8,540		6.5	%		1,298		91.1	%		(4.0	%)		(3.8	%)		(4.2	%)		(3.9	%)		(0.1	%)
8			Phoenix		10,647		5.2	%		843		92.5	%		(0.9	%)		(7.0	%)		3.7	%		(2.3	%)		1.3	%
9			Denver		7,755		5.1	%		1,017		94.0	%		(1.4	%)		(5.0	%)		0.5	%		(1.2	%)		(0.2	%)
10			San Diego		4,491		5.0	%		1,625		95.2	%		(0.3	%)		(0.7	%)		(0.2	%)		(0.9	%)		0.5	%
11			Orlando		8,042		4.8	%		969		94.0	%		(2.2	%)		(7.7	%)		1.5	%		(2.3	%)		0.1	%
12			Suburban Maryland		4,823		3.6	%		1,193		94.3	%		(0.3	%)		2.1	%		(1.7	%)		0.3	%		(0.5	%)
13			Inland Empire, CA		4,219		3.6	%		1,309		94.8	%		(1.6	%)		(1.0	%)		(1.9	%)		(1.7	%)		0.1	%
14			Atlanta		5,979		3.4	%		955		95.0	%		(2.0	%)		(9.5	%)		4.0	%		(2.3	%)		0.3	%
15			Orange County, CA		3,175		3.2	%		1,512		94.6	%		(2.1	%)		0.2	%		(3.2	%)		(2.8	%)		0.7	%
16			New England (excluding Boston)		3,477		2.1	%		1,121		94.0	%		(0.4	%)		(0.5	%)		(0.2	%)		(0.2	%)		(0.2	%)
17			Jacksonville		3,711		2.0	%		867		93.5	%		(1.9	%)		(2.6	%)		(1.5	%)		(1.8	%)		(0.1	%)
18			Portland, OR		3,113		1.8	%		955		94.6	%		(2.4	%)		(1.2	%)		(3.2	%)		(3.3	%)		0.9	%
19			Tampa		2,318		1.3	%		932		94.0	%		(0.6	%)		(1.6	%)		0.0	%		(0.6	%)		(0.1	%)
20			Raleigh/Durham		1,368		0.6	%		754		95.0	%		1.1	%		(4.9	%)		5.8	%		(1.3	%)		2.2	%
			Top 20 Markets		118,438		99.2	%		1,338		94.0	%		(1.3	%)		(3.7	%)		0.1	%		(1.6	%)		0.3	%
			All Other Markets		1,432		0.8	%		935		94.6	%		(1.3	%)		1.2	%		(2.8	%)		(0.9	%)		(0.4	%)
			Total		119,870		100.0	%		$ 1,334		94.0	%		(1.3	%)		(3.6	%)		0.1	%		(1.6	%)		0.3	%
(1)		Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period.

Equity Residential
2009 vs. 2008
Same Store Results/Statistics by Market
															Increase (Decrease) from Prior Year
							2009			2009		2009
							% of			Average		Weighted												Average
							Actual			Rental		Average												Rental
			Markets		Units		NOI			Rate (1)		Occupancy %			Revenues			Expenses			NOI			Rate (1)			Occupancy
1			New York Metro Area		6,247		10.6	%		$ 2,631		94.9	%		(4.8	%)		3.9	%		(9.5	%)		(4.7	%)		(0.1	%)
2			South Florida		11,761		9.1	%		1,278		93.3	%		(2.1	%)		(0.5	%)		(3.2	%)		(1.9	%)		(0.2	%)
3			DC Northern Virginia		7,661		8.9	%		1,652		94.6	%		(1.2	%)		1.0	%		(2.3	%)		(0.3	%)		(1.0	%)
4			Los Angeles		6,485		7.7	%		1,709		93.5	%		(3.8	%)		(1.7	%)		(4.8	%)		(3.1	%)		(0.6	%)
5			Boston		5,609		7.2	%		1,933		95.1	%		1.1	%		(1.4	%)		2.7	%		1.7	%		(0.6	%)
6			Seattle/Tacoma		8,115		7.0	%		1,355		92.0	%		(6.0	%)		1.2	%		(9.9	%)		(3.4	%)		(2.5	%)
7			San Francisco Bay Area		5,708		6.6	%		1,700		93.6	%		(2.7	%)		(0.4	%)		(3.9	%)		(0.7	%)		(1.9	%)
8			Phoenix		10,239		5.4	%		865		92.6	%		(7.5	%)		(0.7	%)		(11.6	%)		(6.0	%)		(1.5	%)
9			Denver		7,416		5.2	%		1,018		93.9	%		(1.8	%)		(0.4	%)		(2.5	%)		(1.0	%)		(0.8	%)
10			San Diego		4,491		5.2	%		1,640		94.3	%		(0.1	%)		(2.4	%)		1.0	%		(0.4	%)		0.3	%
11			Orlando		7,525		4.6	%		986		93.4	%		(4.7	%)		(2.4	%)		(6.2	%)		(4.5	%)		(0.2	%)
12			Inland Empire, CA		4,219		3.9	%		1,333		94.5	%		(2.6	%)		(2.6	%)		(2.6	%)		(3.1	%)		0.5	%
13			Orange County, CA		3,175		3.6	%		1,560		94.1	%		(3.6	%)		(1.2	%)		(4.7	%)		(3.2	%)		(0.5	%)
14			Atlanta		5,979		3.5	%		989		94.4	%		(3.6	%)		(0.3	%)		(5.9	%)		(3.0	%)		(0.6	%)
15			Suburban Maryland		3,549		2.7	%		1,164		94.3	%		1.5	%		1.5	%		1.4	%		1.4	%		0.0	%
16			New England (excluding Boston)		3,477		2.1	%		1,120		94.1	%		(1.1	%)		2.0	%		(3.8	%)		(0.9	%)		(0.3	%)
17			Jacksonville		3,711		2.0	%		881		93.4	%		(3.5	%)		(3.3	%)		(3.7	%)		(3.4	%)		(0.1	%)
18			Portland, OR		3,113		1.9	%		979		94.2	%		(1.6	%)		1.9	%		(3.8	%)		(0.6	%)		(1.0	%)
19			Tampa		2,318		1.3	%		943		94.1	%		(2.9	%)		(2.3	%)		(3.3	%)		(3.0	%)		0.1	%
20			Raleigh/Durham		1,368		0.6	%		764		94.1	%		(3.1	%)		(0.9	%)		(4.6	%)		(2.1	%)		(1.0	%)
			Top 20 Markets		112,166		99.1	%		1,357		93.8	%		(2.9	%)		(0.1	%)		(4.5	%)		(2.2	%)		(0.7	%)
			All Other Markets		1,432		0.9	%		948		94.5	%		(3.3	%)		0.6	%		(5.6	%)		(3.3	%)		0.0	%
			Total		113,598		100.0	%		$ 1,352		93.8	%		(2.9	%)		(0.1	%)		(4.6	%)		(2.2	%)		(0.7	%)
(1)		Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period.

Equity Residential
Fourth Quarter 2009 vs. Fourth Quarter 2008
Same Store Operating Expenses
$ in thousands - 117,683 Same Store Units
													% of Actual
													Q4 2009
			Actual		Actual		$			%			Operating
			Q4 2009		Q4 2008		Change			Change			Expenses
Real estate taxes			$ 43,599		$ 44,684		$ (1,085	)		(2.4	%)		26.9	%
On-site payroll (1)			39,261		40,258		(997	)		(2.5	%)		24.2	%
Utilities (2)			25,162		24,496		666			2.7	%		15.5	%
Repairs and maintenance (3)			23,674		24,270		(596	)		(2.5	%)		14.6	%
Property management costs (4)			15,965		17,447		(1,482	)		(8.5	%)		9.8	%
Insurance			5,658		5,412		246			4.5	%		3.5	%
Leasing and advertising			4,224		3,754		470			12.5	%		2.6	%
Other operating expenses (5)			4,689		5,082		(393	)		(7.7	%)		2.9	%
Same store operating expenses			$ 162,232		$ 165,403		$ (3,171	)		(1.9	%)		100.0	%
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 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.
(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 operating expenses - Includes administrative costs such as office supplies, telephone and data charges and association and business licensing fees.

Equity Residential
Debt Summary as of December 31, 2009
(Amounts in thousands)
															Weighted
												Weighted			Average
												Average			Maturities
							Amounts (1)		% of Total			Rates (1)			(years)
Secured							$ 4,783,446		50.9	%		4.89	%		8.9
Unsecured							4,609,124		49.1	%		5.31	%		4.9
Total							$ 9,392,570		100.0	%		5.11	%		6.9
Fixed Rate Debt:
Secured - Conventional							$ 3,773,008		40.2	%		5.89	%		7.6
Unsecured - Public/Private							3,771,700		40.1	%		5.93	%		5.4
Fixed Rate Debt							7,544,708		80.3	%		5.91	%		6.5
Floating Rate Debt:
Secured - Conventional							382,939		4.0	%		2.18	%		4.2
Secured - Tax Exempt							627,499		6.7	%		0.65	%		20.5
Unsecured - Public/Private							801,824		8.6	%		1.37	%		1.7
Unsecured - Tax Exempt							35,600		0.4	%		0.37	%		19.0
Unsecured - Revolving Credit Facility							-		-			-			2.2
Floating Rate Debt							1,847,862		19.7	%		1.28	%		8.7
Total							$ 9,392,570		100.0	%		5.11	%		6.9
(1)	Net of the effect of any derivative instruments. Weighted average rates are for the
	year ended December 31, 2009.
	Note: The Company capitalized interest of approximately $34.9 million and $60.1
	million during the years ended December 31, 2009 and 2008, respectively. The
	Company capitalized interest of approximately $6.2 million and $15.0 million during
	the quarters ended December 31, 2009 and 2008, respectively.
Debt Maturity Schedule as of December 31, 2009
(Amounts in thousands)
												Weighted			Weighted
												Average Rates			Average
			Fixed		Floating							on Fixed			Rates on
Year			Rate (1)		Rate (1)		Total		% of Total			Rate Debt (1)			Total Debt (1)
2010			$ 34,123		$ 568,310	(2)	$ 602,433		6.4	%		7.61	%		1.36	%
2011			1,066,274	(3)	261,805		1,328,079		14.1	%		5.52	%		4.83	%
2012			739,469		3,362		742,831		7.9	%		5.48	%		5.48	%
2013			266,347		301,824		568,171		6.1	%		6.76	%		4.89	%
2014			517,443		-		517,443		5.5	%		5.28	%		5.28	%
2015			355,632		-		355,632		3.8	%		6.41	%		6.41	%
2016			1,089,236		39,999		1,129,235		12.0	%		5.32	%		5.25	%
2017			1,346,553		456		1,347,009		14.3	%		5.87	%		5.87	%
2018			336,086		44,677		380,763		4.1	%		5.95	%		5.57	%
2019			502,244		20,766		523,010		5.6	%		5.19	%		5.01	%
2020+			1,291,301		606,663		1,897,964		20.2	%		6.11	%		5.07	%
Total			$ 7,544,708		$ 1,847,862		$ 9,392,570		100.0	%		5.85	%		5.03	%

(1)		Net of the effect of any derivative instruments. Weighted average rates are as of December 31, 2009.
(2)		Includes the Company's $500.0 million floating rate term loan facility, which matures on October 5, 2010, subject to two one-year extension options exercisable by the Company.
(3)		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.

Equity Residential
Unsecured Debt Summary as of December 31, 2009
(Amounts in thousands)
													Unamortized
			Coupon			Due				Face			Premium/			Net
			Rate			Date				Amount			(Discount)			Balance
	Fixed Rate Notes:
			6.950	%		03/02/11		(1)		$ 93,096			$ 990			$ 94,086
			6.625	%		03/15/12		(2)		253,858			(412	)		253,446
			5.500	%		10/01/12		(3)		222,133			(602	)		221,531
			5.200	%		04/01/13		(4)		400,000			(385	)		399,615
			5.250	%		09/15/14				500,000			(289	)		499,711
			6.584	%		04/13/15				300,000			(590	)		299,410
			5.125	%		03/15/16				500,000			(332	)		499,668
			5.375	%		08/01/16				400,000			(1,221	)		398,779
			5.750	%		06/15/17				650,000			(3,815	)		646,185
			7.125	%		10/15/17				150,000			(505	)		149,495
			7.570	%		08/15/26				140,000			-			140,000
			3.850	%		08/15/26		(5)		482,545			(12,771	)		469,774
	Fair Value Derivative Adjustments							(4)		(300,000	)		-			(300,000	)
										3,791,632			(19,932	)		3,771,700
	Floating Rate Tax Exempt Notes:
			7-Day SIFMA			12/15/28		(6)		35,600			-			35,600
	Floating Rate Notes:
						04/01/13		(4)		300,000			-			300,000
	Fair Value Derivative Adjustments							(4)		1,824			-			1,824
	Term Loan Facility		LIBOR+0.50%			10/05/10		(6)(7)		500,000			-			500,000
										801,824			-			801,824
	Revolving Credit Facility:		LIBOR+0.50%			02/28/12		(8)		-			-			-
	Total Unsecured Debt									$ 4,629,056			$ (19,932	)		$ 4,609,124
	Note: SIFMA stands for the Securities Industry and Financial Markets Association and is the tax-
	exempt index equivalent of LIBOR.

(1)		On January 27, 2009, the Company repurchased $185.2 million of these notes at par pursuant to a cash tender offer announced on January 16, 2009. On December 10, 2009, the Company repurchased $21.7 million of these notes at a price of 106% of par pursuant to a cash tender offer announced on December 2, 2009.
(2)		On December 10, 2009, the Company repurchased $146.1 million of these notes at a price of 108% of par pursuant to a cash tender offer announced on December 2, 2009.
(3)		On December 10, 2009, the Company repurchased $127.9 million of these notes at a price of 107% of par pursuant to a cash tender offer announced on December 2, 2009.
(4)		$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.
(5)		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. During the quarter ended March 31, 2009, the Company repurchased $17.5 million of these notes at a price of 88.4% of par. On December 31, 2009, the Company repurchased $48.5 million of these notes at par pursuant to a cash tender offer announced on December 2, 2009. Effective January 1, 2009, companies are required to expense the implied option value inherent in convertible debt. In conjunction with this requirement, the Company recorded an adjustment of $17.3 million to the beginning balance of the discount on its convertible notes.
(6)		Notes are private. All other unsecured debt is public.
(7)		Represents the Company's $500.0 million term loan facility, which matures on October 5, 2010, subject to two one-year extension options exercisable by the Company.
(8)		As of December 31, 2009, there was no amount outstanding and approximately $1.37 billion available on the Company's unsecured revolving credit facility.

Equity Residential
Selected Unsecured Public Debt Covenants
						December 31,			September 30,
						2009			2009
Total Debt to Adjusted Total Assets (not to exceed 60%)						48.8	%		50.3	%
Secured Debt to Adjusted Total Assets (not to exceed 40%)						24.9	%		25.0	%
Consolidated Income Available for Debt Service to
Maximum Annual Service Charges
(must be at least 1.5 to 1)						2.44			2.26
Total Unsecured Assets to Unsecured Debt
(must be at least 150%)						256.5	%		241.3	%
These selected covenants relate to ERP Operating Limited Partnership's ("ERPOP") outstanding
unsecured public debt. Equity Residential is the general partner of ERPOP.
Debt Repurchases
(Amounts in thousands)
		Fourth Quarter 2009 Activity
												Write-off of
		Bonds		Price		Price			Extinguishment			Unamortized
Security		Retired		Paid		to Par			(Loss)/Gain			Costs
2011 6.95% Public Notes		$ 21,710		$ 23,013		106.0	%		$ (1,303	)		$ 177
2012 6.625% Public Notes		146,142		157,833		108.0	%		(11,691	)		(499	)
2012 5.50% Public Notes		127,867		136,818		107.0	%		(8,951	)		(912	)
2026 3.85% Convertible Notes (1)		48,547		48,547		100.0	%		-			(1,755	)
Total		$ 344,266		$ 366,211		106.4	%		$ (21,945	)		$ (2,989	)
		2009 Activity
												Write-off of
		Bonds		Price		Price			Extinguishment			Unamortized
Security		Retired		Paid		to Par			(Loss)/Gain			Costs
2009 4.75% Public Notes		$ 105,161		$ 105,161		100.0	%		$ -			$ (125	)
2011 6.95% Public Notes		206,904		208,207		100.6	%		(1,303	)		(1,202	)
2012 6.625% Public Notes		146,142		157,833		108.0	%		(11,691	)		(499	)
2012 5.50% Public Notes		127,867		136,818		107.0	%		(8,951	)		(912	)
2026 3.85% Convertible Notes (1)		66,012		63,992		96.9	%		2,020			(2,634	)
Total		$ 652,086		$ 672,011		103.1	%		$ (19,925	)		$ (5,372	)
(1) 2026 3.85% Convertible Notes are putable to the Company in 2011.

Equity Residential
Capital Structure as of December 31, 2009
(Amounts in thousands except for share/unit and per share amounts)
Secured Debt											$ 4,783,446		50.9	%
Unsecured Debt											4,609,124		49.1	%
Total Debt											9,392,570		100.0	%		48.1	%
Common Shares (includes Restricted Shares)						279,959,048		95.2	%
Units						14,197,969		4.8	%
Total Shares and Units						294,157,017		100.0	%
Common Share Equivalents (see below)						398,038
Total outstanding at quarter-end						294,555,055
Common Share Price at December 31, 2009						$ 33.78
											9,950,070		98.0	%
Perpetual Preferred Equity (see below)											200,000		2.0	%
Total Equity											10,150,070		100.0	%		51.9	%
Total Market Capitalization											$19,542,640					100.0	%
Convertible Preferred Equity as of December 31, 2009
(Amounts in thousands except for share and per share amounts)
								Annual			Annual		Weighted						Common
		Redemption		Outstanding		Liquidation		Dividend			Dividend		Average			Conversion			Share
Series		Date		Shares		Value		Per Share			Amount		Rate			Ratio			Equivalents
Preferred Shares:
7.00% Series E		11/1/98		328,466		$ 8,212		$ 1.75			$ 575					1.1128			365,517
7.00% Series H		6/30/98		22,459		561		1.75			39					1.4480			32,521
Total Convertible Preferred Equity				350,925		$ 8,773					$ 614		7.00	%					398,038
Perpetual Preferred Equity as of December 31, 2009
(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	%

Equity Residential
Common Share and Unit
Weighted Average Amounts Outstanding
						2009		2008 (1)			Q409 (1)		Q408 (1)
Weighted Average Amounts Outstanding for Net Income Purposes:
	Common Shares - basic					273,609,477		270,011,946			275,519,463		271,292,534
	Shares issuable from assumed conversion/vesting of:
		- OP Units				15,557,540		-			-		-
		- long-term compensation award shares/units				938,094		-			-		-
	Total Common Shares and Units - diluted					290,105,111		270,011,946			275,519,463		271,292,534
Weighted Average Amounts Outstanding for FFO Purposes:
	Common Shares - basic					273,609,477		270,011,946			275,519,463		271,292,534
	OP Units - basic					15,557,540		17,618,514			14,173,726		16,958,491
	Total Common Shares and OP Units - basic					289,167,017		287,630,460			289,693,189		288,251,025
	Shares issuable from assumed conversion/vesting of:
		- convertible preferred shares/units				402,501		419,573			398,038		-
		- long-term compensation award shares/units				938,094		2,429,163			1,892,471		1,260,145
	Total Common Shares and Units - diluted					290,507,612		290,479,196			291,983,698		289,511,170
Period Ending Amounts Outstanding:
	Common Shares (includes Restricted Shares)					279,959,048
	Units					14,197,969
	Total Shares and Units					294,157,017

(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 year ended December 31, 2008 and the fourth quarters ended December 31, 2009 and 2008, respectively.

Equity Residential
Partially Owned Entities as of December 31, 2009
(Amounts in thousands except for project and unit amounts)
				Consolidated															Unconsolidated
				Development Projects
				Held for															Institutional
				and/or Under			Completed, Not			Completed									Joint
				Development			Stabilized (4)			and Stabilized			Other			Total			Ventures (5)
Total projects			(1)	-			3			3			21			27			34
Total units			(1)	-			1,024			710			3,796			5,530			8,086
Operating information for the year
	ended 12/31/09 (at 100%):
	Operating revenue			$ 406			$ 7,078			$ 11,238			$ 56,565			$ 75,287			$ 91,200
	Operating expenses			1,506			4,209			5,484			19,678			30,877			42,143
	Net operating (loss) income			(1,100	)		2,869			5,754			36,887			44,410			49,057
	Depreciation			370			2,744			5,927			15,032			24,073			19,341
	General and administrative/other			128			446			5			78			657			423
	Operating (loss) income			(1,598	)		(321	)		(178	)		21,777			19,680			29,293
	Interest and other income			28			17			-			109			154			443
	Other expenses			(508	)		-			-			(17	)		(525	)		-
	Interest:
		Expense incurred, net		(1,552	)		(3,743	)		(3,158	)		(20,135	)		(28,588	)		(41,417	)
		Amortization of deferred financing costs		(211	)		(176	)		(191	)		(185	)		(763	)		(1,004	)
	Income and other tax (expense) benefit			(53	)		-			-			(28	)		(81	)		(318	)
	Net (loss) income			$ (3,894	)		$ (4,223	)		$ (3,527	)		$ 1,521			$ (10,123	)		$ (13,003	)
Debt - Secured (2):
		EQR Ownership (3)		$ 303,253			$ 218,965			$ 113,385			$ 219,136			$ 854,739			$ 101,809
		Noncontrolling Ownership		-			-			-			82,732			82,732			305,426
Total (at 100%)				$ 303,253			$ 218,965			$ 113,385			$ 301,868			$ 937,471			$ 407,235

(1)		Project and unit counts exclude all uncompleted development projects until those projects are substantially completed. See the Consolidated Development Projects schedule for more detail.
(2)		All debt is non-recourse to the Company with the exception of $42.2 million in mortgage debt on various development projects. In addition, $66.0 million in mortgage debt on one development project will become recourse to the Company upon completion of that project.
(3)		Represents the Company's current economic ownership interest.
(4)		Projects included here are substantially complete. However, they may still require additional exterior and interior work for all units to be available for leasing.
(5)		Unconsolidated debt maturities and rates for institutional joint ventures are as follows: $112.6 million, May 1, 2010, 8.33%; $121.0 million, December 1, 2010, 7.54%; $143.8 million, March 1, 2011, 6.95%; and $29.8 million, July 1, 2019, 5.305%. A portion of this mortgage debt is also partially collateralized by $42.6 million in unconsolidated restricted cash set aside from the net proceeds of property sales. During the third quarter of 2009, the Company acquired its partner's interest in one of the previously unconsolidated properties containing 250 units for $18.5 million and as a result, the project is now consolidated and wholly owned.

Equity Residential
Consolidated Development Projects as of December 31, 2009
(Amounts in thousands except for project and unit amounts)
											Total Book
							Total		Total		Value Not														Estimated		Estimated
					No. of		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:
70 Greene (a.k.a. 77 Hudson)			Jersey City, NJ		480		$ 269,958		$ 264,663		$ 264,663		$ -			98	%		57	%		53	%		Q1 2010		Q1 2011
Red 160 (a.k.a. Redmond Way)			Redmond, WA		250		84,382		51,920		51,920		-			62	%		-			-			Q1 2011		Q1 2012
Projects Under Development - Wholly Owned					730		354,340		316,583		316,583		-
Projects Under Development - Partially Owned:
The Brooklyner (a.k.a. 111 Lawrence Street)			Brooklyn, NY		490		283,968		227,882		227,882		105,217			85	%		13	%		2	%		Q3 2010		Q3 2011
Westgate			Pasadena, CA		480		170,558		124,514		124,514		163,160	(2	)	70	%		11	%		5	%		Q2 2011		Q2 2012
Projects Under Development - Partially Owned					970		454,526		352,396		352,396		268,377
Projects Under Development					1,700		808,866		668,979		668,979		268,377	(3			)
Completed Not Stabilized - Wholly Owned (4):
Third Square (a.k.a. 303 Third) (5)			Cambridge, MA		482		257,457		256,263		-		-						81	%		78	%		Completed		Q3 2010
Reserve at Town Center II			Mill Creek, WA		100		24,464		20,591		-		-						69	%		60	%		Completed		Q3 2010
Reunion at Redmond Ridge			Redmond, WA		321		53,175		53,151		-		-						54	%		52	%		Completed		Q1 2011
Projects Completed Not Stabilized - Wholly Owned					903		335,096		330,005		-		-
Completed Not Stabilized - Partially Owned (4):
Veridian (a.k.a. Silver Spring)			Silver Spring, MD		457		149,962		149,289		-		113,282						97	%		95	%		Completed		Q1 2010
Montclair Metro			Montclair, NJ		163		48,730		45,076		-		33,434						49	%		40	%		Completed		Q3 2010
Red Road Commons			South Miami, FL		404		128,816		125,460		-		72,249						82	%		78	%		Completed		Q4 2010
Projects Completed Not Stabilized - Partially Owned					1,024		327,508		319,825		-		218,965
Projects Completed Not Stabilized					1,927		662,604		649,830		-		218,965
Completed and Stabilized During the Quarter - Wholly Owned:
Mosaic at Metro			Hyattsville, MD		260		59,733		59,643		-		45,418						96	%		95	%		Completed		Stabilized
Projects Completed and Stabilized During the Quarter - Wholly Owned					260		59,733		59,643		-		45,418
Completed and Stabilized During the Quarter - Partially Owned:
1401 South State (a.k.a. City Lofts)			Chicago, IL		278		68,923		68,455		-		52,125						93	%		91	%		Completed		Stabilized
Projects Completed and Stabilized During the Quarter - Partially Owned					278		68,923		68,455		-		52,125
Projects Completed and Stabilized During the Quarter					538		128,656		128,098		-		97,543
Total Projects					4,165		$ 1,600,126		$ 1,446,907		$ 668,979		$ 584,885
Land Held for Development					N/A		N/A		$ 252,320		$ 252,320		$ 34,876
NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS																Total Capital Cost (1)			Q4 2009 NOI
Projects Under Development																$ 808,866			$ (177	)
Completed Not Stabilized																662,604			3,991
Completed and Stabilized During the Quarter																128,656			1,680
Total Development NOI Contribution																$ 1,600,126			$ 5,494

(1) Total capital cost represents estimated development 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) Debt is primarily tax-exempt bonds that are entirely outstanding with $47.4 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, 2009.
(3) Of the approximately $139.9 million of capital cost remaining to be funded at 12/31/09 for projects under development, $102.1 million will be funded by fully committed third party bank loans and the remaining $37.8 million will be funded by cash on hand.
(4) Properties included here are substantially complete. However, they may still require additional exterior and interior work for all units to be available for leasing.
(5) Third Square - Both the percentage leased and percentage occupied reflect the full 482 units included in phases I & II. Phase I is 96% leased and 94% occupied. Phase II is 58% leased and 53% occupied.

Equity Residential
Repairs and Maintenance Expenses and Capital Expenditures to Real Estate
For the Year Ended December 31, 2009
(Amounts in thousands except for unit and per unit amounts)
					Repairs and Maintenance Expenses												Capital Expenditures to Real Estate															Total Expenditures
																						Building
			Total				Avg.				Avg.				Avg.		Replacements			Avg.		Improvements			Avg.				Avg.			Grand		Avg.
			Units (1)		Expense (2)		Per Unit		Payroll (3)		Per Unit		Total		Per Unit		(4)			Per Unit		(5)			Per Unit		Total		Per Unit			Total		Per Unit
Same Store Properties (6)			113,598		$ 94,556		$ 832		$ 77,121		$ 679		$ 171,677		$ 1,511		$ 69,808			$ 614		$ 44,611			$ 393		$ 114,419		$ 1,007	(9	)	$ 286,096		$ 2,518
Non-Same Store Properties (7)			10,728		8,649		880		5,596		570		14,245		1,450		2,361			240		3,675			374		6,036		614			20,281		2,064
Other (8)			-		2,645				8,776				11,421				2,130					1,352					3,482					14,903
Total			124,326		$ 105,850				$ 91,493				$ 197,343				$ 74,299					$ 49,638					$ 123,937					$ 321,280

(1)		Total Units - Excludes 8,086 unconsolidated units and 4,595 military housing units, for which repairs and maintenance expenses and capital expenditures to real estate are self-funded and do not consolidate into the Company's results.
(2)		Repairs and Maintenance Expenses - 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.
(3)		Maintenance Payroll - Includes payroll and related expenses for maintenance staff.
(4)		Replacements - Includes new expenditures inside the units such as appliances, mechanical equipment, fixtures and flooring, including carpeting. Replacements for same store properties also include $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.
(5)		Building Improvements - Includes roof replacement, paving, amenities and common areas, building mechanical equipment systems, exterior painting and siding, major landscaping, vehicles and office and maintenance equipment.
(6)		Same Store Properties - Primarily includes all properties acquired or completed and stabilized prior to January 1, 2008, less properties subsequently sold.
(7)		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 units.
(8)		Other - Primarily includes expenditures for properties sold during the period.
(9)		For 2010, the Company estimates that it will spend approximately $1,075 per unit of capital expenditures for its same store properties inclusive of unit renovation/rehab costs, or $825 per unit excluding unit renovation/rehab costs.

Equity Residential
Discontinued Operations
(Amounts in thousands)
			Year Ended						Quarter Ended
			December 31,						December 31,
			2009			2008			2009			2008
REVENUES
Rental income			$ 72,823			$ 173,243			$ 1,641			$ 33,853
	Total revenues		72,823			173,243			1,641			33,853
EXPENSES (1)
Property and maintenance			26,681			52,785			2,581			10,456
Real estate taxes and insurance			9,062			19,853			1,251			3,643
Property management			-			(62	)		-			-
Depreciation			18,095			43,440			505			8,254
General and administrative			34			29			5			5
Total expenses			53,872			116,045			4,342			22,358
Discontinued operating income (loss)			18,951			57,198			(2,701	)		11,495
Interest and other income			21			249			9			16
Other expenses			(1	)		-			(1	)		-
Interest (2):
	Expense incurred, net		(1,104	)		(2,897	)		(208	)		(693	)
	Amortization of deferred financing costs		(333	)		(17	)		(4	)		(4	)
Income and other tax (expense) benefit			1,165			1,846			1,251			832
Discontinued operations			18,699			56,379			(1,654	)		11,646
Net gain on sales of discontinued operations			335,299			392,857			60,366			27,805
Discontinued operations, net			$ 353,998			$ 449,236			$ 58,712			$ 39,451

(1)		Includes expenses paid in the current period for properties sold or held for sale in prior periods related to the Company’s period of ownership.
(2)		Includes only interest expense specific to secured mortgage notes payable for properties sold and/or held for sale.

Equity Residential
FFO Midpoint Reconciliations and Non-Comparable Items
(Amounts in thousands except per share data)
(All per share data is diluted)
FFO Midpoint Reconciliations
									FFO Reconciliations
									Guidance Midpoint Q4
									2009 to Actual Q4 2009
									Amounts			Per Share
	Guidance midpoint Q4 2009 FFO - Diluted (1) (2)								$ 147,085			$ 0.506
	Property NOI								3,906			0.013
	Debt extinguishment costs related to tender offers								(24,934	)		(0.085	)
	Income and other taxes								1,676			0.006
	Other expenses								(2,702	)		(0.009	)
	Other								1,914			0.004
	Actual Q4 2009 FFO - Diluted (1) (2)								$ 126,945			$ 0.435
Non-Comparable Items (3)
			Year Ended December 31,									Quarter Ended December 31,
			2009			2008			Variance			2009			2008			Variance
Impairment			$ (11,124	)		$ (116,418	)		$ 105,294			$ -			$ (116,418	)		$ 116,418
Debt extinguishment gains (interest and other income)			4,455			18,737			(14,282	)		-			18,471			(18,471	)
Gain on sale of investment securities (interest and other income)			4,943			-			4,943			-			-			-
Write-off of pursuit costs (other expenses)			(4,838	)		(5,535	)		697			(2,865	)		(2,679	)		(186	)
Transaction costs (other expenses)			(1,650	)		(225	)		(1,425	)		(1,395	)		(195	)		(1,200	)
Non-cash convertible debt discount (includes extinguishment write-offs)			(10,590	)		(13,272	)		2,682			(3,425	)		(5,718	)		2,293
Debt extinguishment costs (interest):
	Prepayment premiums/penalties		(21,980	)		(81	)		(21,899	)		(21,945	)		(40	)		(21,905	)
	Write-off of unamortized deferred financing costs		(3,536	)		(1,020	)		(2,516	)		(1,208	)		(851	)		(357	)
	Write-off of unamortized premiums/(discounts)/(OCI)		(907	)		(53	)		(854	)		(149	)		(28	)		(121	)
EQR 25% share of unconsolidated defeasance costs
	((loss) from investments in unconsolidated entities)		(1,775	)		-			(1,775	)		-			-			-
Net gain on sales of land parcels			-			2,976			(2,976	)		-			-			-
Net incremental (loss) gain on sales of condominium units			(385	)		(3,932	)		3,547			65			(1,289	)		1,354
Other			(1,600	)		83			(1,683	)		827			(1,159	)		1,986
Net non-comparable items (3)			$ (48,987	)		$ (118,740	)		$ 69,753			$ (30,095	)		$ (109,906	)		$ 79,811
Note: See page 26 for definitions, footnotes and reconciliations of EPS to FFO.

Equity Residential
Earnings Guidance and Assumptions
The earnings guidance/projections provided below are based on current expectations and are forward-looking.
2010 Earnings Guidance (per share diluted)
					Q1 2010		2010
Expected FFO (1) (2)					$0.48 to $0.52		$1.95 to $2.15
2010 Same Store Assumptions
Physical occupancy							94.3%
Revenue change							(3.0%) to (1.0%)
Expense change							1.0% to 2.0%
NOI change							(6.0%) to (2.0%)
(Note: 25 basis point change in NOI percentage = $0.01 per share change in EPS/FFO)
2010 Transaction Assumptions
Consolidated rental acquisitions							$1.0 billion
Consolidated rental dispositions							$600.0 million
Capitalization rate spread							150 basis points
2010 Debt Assumptions
Weighted average debt outstanding							$9.4 billion to $9.6 billion
Weighted average interest rate (reduced for capitalized interest and including prepayment penalties)							4.96%
Interest expense							$466.0 million to $476.0 million
Note: Debt guidance assumes no additional debt offerings and no additional debt extinguishments, but does include approximately $7.8 million of interest expense for the requirement to expense the implied option value inherent in convertible debt. The terms of the Company's debt covenants do not include this charge as interest expense.
2010 Other Guidance Assumptions
General and administrative expense							$38.0 million to $40.0 million
Interest and other income							$1.0 million to $3.0 million
Other expenses (write-off of pursuit and transaction costs)							$9.0 million to $12.0 million
Income and other tax expense							$1.0 million to $2.0 million
Net gain on sales of land parcels							No amounts budgeted
Preferred share redemptions							No amounts budgeted
Equity ATM share offerings							No additional amounts budgeted
Weighted average Common Shares and Units - Diluted							297.0 million
Note: See page 26 for definitions, footnotes and reconciliations of EPS to FFO.

Equity Residential
Additional Reconciliations
(Amounts in thousands except per share data)
(All per share data is diluted)
The earnings guidance/projections provided below are based on current expectations and are forward-looking.
Reconciliations of EPS to FFO for Pages 24 and 25
									Expected			Expected
			Expected Q4 2009						Q1 2010			2010
			Amounts			Per Share			Per Share			Per Share
	Expected Earnings - Diluted (4)		$ 75,251			$ 0.259			$0.17 to $0.21			$0.67 to $0.87
	Add: Expected depreciation expense		147,495			0.508			0.50			2.03
	Less: Expected net gain on sales (4)		(75,661	)		(0.261	)		(0.19	)		(0.75	)
	Expected FFO - Diluted (1) (2)		$ 147,085			$ 0.506			$0.48 to $0.52			$1.95 to $2.15

Definitions and Footnotes for Pages 24 and 25
(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 units to condominiums, it simultaneously discontinues depreciation of such property. FFO available to Common Shares and Units is 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.
(2)		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 company's real estate between periods or as compared to different companies. FFO and 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 and 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 Company's calculation of FFO and 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.
(3)		Non-comparable items are those items included in FFO that by their nature are not comparable from period to period, such as net incremental gain on sales of condominium units, impairment charges, debt extinguishment costs and redemption premiums on Preferred Shares/Preference Interests.
(4)		Earnings represents net income per share calculated in accordance with accounting principles generally accepted in the United States. Expected earnings is calculated on a basis consistent with actual earnings. Due to the uncertain timing and extent of property dispositions and the resulting gains/losses on sales, actual earnings could differ materially from expected earnings.

Same Store NOI Reconciliation for Page 10
The following tables present reconciliations of operating income per the consolidated statements of operations to NOI for the 2009 and Fourth Quarter 2009 Same Store Properties:
			Year Ended December 31,						Quarter Ended December 31,
			2009			2008			2009			2008
Operating income			$ 529,390			$ 458,158			$ 135,270			$ 31,396
Adjustments:
	Non-same store operating results		(77,481	)		(43,201	)		(13,167	)		(7,172	)
	Fee and asset management revenue		(10,346	)		(10,715	)		(2,418	)		(3,318	)
	Fee and asset management expense		7,519			7,981			1,603			1,827
	Depreciation		582,280			559,468			148,383			146,718
	General and administrative		38,994			44,951			8,518			10,911
	Impairment		11,124			116,418			-			116,418
Same store NOI			$ 1,081,480			$ 1,133,060			$ 278,189			$ 296,780