Equity Residential Reports Third Quarter 2009 Results

Equity Residential (NYSE: EQR) today reported results for the quarter and nine months ended September 30, 2009. All per share results are reported on a fully-diluted basis.

"We have spent the year focused on the basics - keeping our customers satisfied and maintaining the quality of our assets while controlling our expenses. As a result of these efforts, our third quarter performance was better than anticipated and we expect to deliver same store operating results for the year that are very much in line with our expectations at the beginning of the year,” said David J. Neithercut, Equity Residential’s President and CEO. "Many thanks go to our colleagues across the enterprise for delivering these results despite very tough conditions.”

Third Quarter 2009

For the third quarter of 2009, the company reported earnings per share of $0.48 compared to earnings of $0.63 per share in the third quarter of 2008. The difference is primarily due to lower gains from property sales in 2009 and lower property net operating income (NOI).

FFO (Funds from Operations) for the quarter ended September 30, 2009 was $0.53 per share compared to $0.64 per share in the same period of 2008. The difference is primarily due to:

• the negative impact of approximately $0.06 per share from lower NOI from the company’s same store portfolio; and
• the negative impact of approximately $0.05 per share from dilution from the company’s 2008 and 2009 transaction activity.

Nine Months Ended September 30, 2009

For the nine months ended September 30, 2009, the company reported earnings of $1.12 per share compared to $1.59 per share in the same period of 2008.

FFO for the nine months ended September 30, 2009 was $1.69 per share compared to $1.86 per share in the same period of 2008.

Same Store Results

On a same store third quarter to third quarter comparison, which includes 119,121 apartment units, revenues decreased 3.9%, expenses decreased 0.6% and NOI decreased 5.8%. The revenue decrease was due to a 3.2% decrease in average rental rates and a 0.7% decrease in occupancy to 93.7%.

On a same store nine-month to nine-month comparison, which includes 115,832 apartment units, revenues decreased 2.3%, expenses increased 0.5% and NOI decreased 3.9%.

Acquisitions/Dispositions

During the third quarter of 2009, the company sold 24 consolidated properties, consisting of 4,620 apartment units, for an aggregate sale price of $381.1 million at an average capitalization (cap) rate of 7.7% generating an unlevered internal rate of return (IRR) of 9.5%.

During the first nine months of 2009, the company sold 47 consolidated properties, consisting of 8,819 apartment units, for an aggregate sale price of $734.5 million at an average cap rate of 7.5% generating an unlevered IRR of 9.8%.

"We continue to execute our portfolio transformation strategy, achieving good prices for non-core assets that we are selling in secondary markets and, as a result, have increased our dispositions guidance for the year to $900 million. The proceeds from these asset sales, combined with $1.36 billion of availability under our revolving credit facility and our access to the capital markets, strongly position us to take advantage of any future opportunities to add high quality properties to our portfolio,” said Mr. Neithercut.

At-The-Market Share Offering Program

On September 29, 2009, the company announced the creation of an At-The-Market (ATM) share offering program which would allow the company to sell up to 17 million common shares from time to time. To date, the company has not issued any shares through this program.

Fourth Quarter 2009 Guidance

The company has established an FFO guidance range of $0.49 to $0.53 per share for the fourth quarter of 2009. The difference between the company’s actual third quarter FFO of $0.53 per share and the midpoint of the range for the fourth quarter is primarily due to lower total property NOI expected in the fourth quarter of 2009 as compared to the third quarter of 2009.

Full Year 2009 Guidance

The company has revised its guidance for its full year 2009 same store operating performance, funds from operations and transaction activities as well as other items listed on page 25 of this release. The changes to the full year same store and FFO guidance are listed below:

				Previous				Revised
Same store:
Revenue change				(3.5%) to (3.0%)				(3.0%)
Expense change				1.25% to 1.75%				0.5%
NOI change				(6.5%) to (5.5%)				(5.0%)
FFO per share				$2.10 to $2.20				$2.18 to $2.22

The difference between the midpoint of the range of the company’s previous guidance and the midpoint of the revised range is primarily due to higher than previously expected property NOI.

Fourth Quarter 2009 Conference Call

Equity Residential expects to announce fourth quarter 2009 results on Wednesday, February 3, 2010 and host a conference call to discuss those results at 10:00 a.m. CT on Thursday, February 4, 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 501 properties located in 23 states and the District of Columbia, consisting of 138,887 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 2009 will take place tomorrow, Thursday, October 29, 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)
		Nine Months Ended September 30,						Quarter Ended September 30,
		2009			2008			2009			2008
REVENUES
Rental income		$ 1,471,383			$ 1,485,814			$ 490,104			$ 508,619
Fee and asset management		7,928			7,397			2,653			2,387
Total revenues		1,479,311			1,493,211			492,757			511,006
EXPENSES
Property and maintenance		374,067			389,042			125,904			134,658
Real estate taxes and insurance		161,777			153,317			55,743			52,039
Property management		56,457			59,587			18,725			18,920
Fee and asset management		5,916			6,154			1,931			1,983
Depreciation		438,726			417,662			147,477			145,382
General and administrative		30,476			34,040			9,881			9,849
Impairment		11,124			-			-			-
Total expenses		1,078,543			1,059,802			359,661			362,831
Operating income		400,768			433,409			133,096			148,175
Interest and other income		15,854			11,038			3,215			2,871
Other expenses		(2,228	)		(2,886	)		(1,922	)		(2,106	)
Interest:
Expense incurred, net		(361,085	)		(361,125	)		(121,520	)		(122,345	)
Amortization of deferred financing costs		(9,614	)		(6,748	)		(3,394	)		(2,410	)
Income before income and other taxes, (loss) income
from investments in unconsolidated entities, net
gain on sales of unconsolidated entities and land
parcels and discontinued operations		43,695			73,688			9,475			24,185
Income and other tax (expense) benefit		(2,846	)		(5,937	)		(459	)		(1,317	)
(Loss) income from investments in unconsolidated entities		(2,372	)		60			(151	)		250
Net gain on sales of unconsolidated entities		6,718			-			3,959			-
Net gain on sales of land parcels		-			2,976			-			2,976
Income from continuing operations		45,195			70,787			12,824			26,094
Discontinued operations, net		289,523			403,859			130,541			161,031
Net income		334,718			474,646			143,365			187,125
Net (income) loss attributable to Noncontrolling Interests:
Operating Partnership		(18,119	)		(28,622	)		(7,699	)		(11,141	)
Preference Interests and Units		(9	)		(11	)		(2	)		(4	)
Partially Owned Properties		391			(1,765	)		317			(106	)
Net income attributable to controlling interests		316,981			444,248			135,981			175,874
Preferred distributions		(10,859	)		(10,887	)		(3,619	)		(3,628	)
Net income available to Common Shares		$ 306,122			$ 433,361			$ 132,362			$ 172,246
Earnings per share – basic:
Income from continuing operations available to Common Shares		$ 0.12			$ 0.20			$ 0.03			$ 0.08
Net income available to Common Shares		$ 1.12			$ 1.61			$ 0.48			$ 0.64
Weighted average Common Shares outstanding		272,966			269,582			273,658			270,345
Earnings per share – diluted:
Income from continuing operations available to Common Shares		$ 0.12			$ 0.20			$ 0.03			$ 0.08
Net income available to Common Shares		$ 1.12			$ 1.59			$ 0.48			$ 0.63
Weighted average Common Shares outstanding		289,518			290,267			290,215			290,795
Distributions declared per Common Share outstanding		$ 1.3025			$ 1.4475			$ 0.3375			$ 0.4825

Equity Residential
Consolidated Statements of Funds From Operations
(Amounts in thousands except per share data)
(Unaudited)
				Nine Months Ended September 30,						Quarter Ended September 30,
				2009 (3)			2008 (3)			2009 (3)			2008 (3)
Net income				$ 334,718			$ 474,646			$ 143,365			$ 187,125
Adjustments:
	Net (income) loss attributable to Noncontrolling Interests:
		Preference Interests and Units		(9	)		(11	)		(2	)		(4	)
		Partially Owned Properties		391			(1,765	)		317			(106	)
	Depreciation			438,726			417,662			147,477			145,382
	Depreciation – Non-real estate additions			(5,569	)		(6,057	)		(1,777	)		(1,976	)
	Depreciation – Partially Owned and Unconsolidated Properties			656			3,103			225			1,063
	Net (gain) on sales of unconsolidated entities			(6,718	)		-			(3,959	)		-
	Discontinued operations:
		Depreciation		12,761			30,274			2,175			8,380
		Net gain on sales of discontinued operations		(274,933	)		(365,052	)		(129,135	)		(150,255	)
		Net incremental (loss) gain on sales of condominium units		(450	)		(2,643	)		(785	)		447
FFO (1) (2)				499,573			550,157			157,901			190,056
Preferred distributions				(10,859	)		(10,887	)		(3,619	)		(3,628	)
FFO available to Common Shares and Units – basic (1) (2)				$ 488,714			$ 539,270			$ 154,282			$ 186,428
FFO available to Common Shares and Units – diluted (1) (2)				$ 489,183			$ 539,773			$ 154,436			$ 186,590
FFO per share and Unit – basic				$ 1.69			$ 1.88			$ 0.53			$ 0.65
FFO per share and Unit – diluted				$ 1.69			$ 1.86			$ 0.53			$ 0.64
Weighted average Common Shares and
	Units outstanding – basic			288,990			287,422			289,263			287,744
Weighted average Common Shares and
	Units outstanding – diluted			289,922			290,699			290,616			291,215

(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 $7.2 million and $7.6 million for the nine months ended September 30, 2009 and 2008, respectively, and by approximately $2.2 million and $2.6 million for the quarters ended September 30, 2009 and 2008, respectively.

Equity Residential
Consolidated Balance Sheets
(Amounts in thousands except for share amounts)
(Unaudited)
					September 30,			December 31,
					2009			2008
ASSETS
Investment in real estate
	Land				$ 3,629,701			$ 3,671,299
	Depreciable property				13,755,610			13,908,594
	Projects under development				753,831			855,473
	Land held for development				239,158			254,873
Investment in real estate					18,378,300			18,690,239
	Accumulated depreciation				(3,785,198	)		(3,561,300	)
Investment in real estate, net					14,593,102			15,128,939
Cash and cash equivalents					637,588			890,794
Investments in unconsolidated entities					4,616			5,795
Deposits – restricted					360,022			152,732
Escrow deposits – mortgage					18,954			19,729
Deferred financing costs, net					50,438			53,817
Other assets					126,676			283,304
			Total assets		$ 15,791,396			$ 16,535,110
LIABILITIES AND EQUITY
Liabilities:
	Mortgage notes payable				$ 4,885,560			$ 5,036,930
	Notes, net				4,949,560			5,447,012
	Lines of credit				-			-
	Accounts payable and accrued expenses				131,730			108,463
	Accrued interest payable				72,970			113,846
	Other liabilities				264,221			289,562
	Security deposits				60,517			64,355
	Distributions payable				100,230			141,843
			Total liabilities		10,464,788			11,202,011
Commitments and contingencies
Redeemable Noncontrolling Interests – Operating Partnership					236,333			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 September 30, 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; 276,147,420 shares issued
			and outstanding as of September 30, 2009 and 272,786,760
			shares issued and outstanding as of December 31, 2008		2,761			2,728
		Paid in capital			4,364,503			4,273,489
		Retained earnings			405,250			456,152
		Accumulated other comprehensive loss			(21,636	)		(35,799	)
			Total shareholders' equity		4,959,651			4,905,356
	Noncontrolling Interests:
		Operating Partnership			118,332			137,645
		Preference Interests and Units			-			184
		Partially Owned Properties			12,292			25,520
			Total Noncontrolling Interests		130,624			163,349
			Total equity		5,090,275			5,068,705
			Total liabilities and equity		$ 15,791,396			$ 16,535,110

Equity Residential
Portfolio Summary
As of September 30, 2009
											% of 2009			Average
								% of			Stabilized			Rental
		Markets		Properties		Units		Total Units			NOI			Rate (1)
1		New York Metro Area		23		6,410		4.6	%		10.4	%		$ 2,575
2		DC Northern Virginia		26		8,781		6.3	%		9.2	%		1,631
3		South Florida		39		12,897		9.3	%		8.8	%		1,263
4		Los Angeles		36		7,463		5.4	%		8.1	%		1,699
5		Seattle/Tacoma		46		10,545		7.6	%		7.4	%		1,289
6		Boston		36		6,503		4.7	%		6.8	%		1,999
7		San Francisco Bay Area		34		6,731		4.8	%		6.8	%		1,641
8		Phoenix		41		11,769		8.5	%		5.6	%		858
9		Denver		23		7,963		5.7	%		5.0	%		1,015
10		San Diego		14		4,491		3.2	%		4.6	%		1,631
11		Orlando		26		8,042		5.8	%		4.4	%		971
12		Inland Empire, CA		14		4,519		3.3	%		3.7	%		1,316
13		Suburban Maryland		22		6,084		4.4	%		3.6	%		1,210
14		Atlanta		24		7,621		5.5	%		3.5	%		921
15		Orange County, CA		10		3,307		2.4	%		3.4	%		1,535
16		New England (excluding Boston)		19		3,477		2.5	%		1.9	%		1,121
17		Portland, OR		10		3,417		2.5	%		1.8	%		970
18		Jacksonville		12		3,951		2.8	%		1.7	%		869
19		Tampa		10		3,158		2.3	%		1.3	%		895
20		Raleigh/Durham		10		2,524		1.8	%		1.0	%		761
		Top 20 Total		475		129,653		93.4	%		99.0	%		1,324
21		Central Valley, CA		5		804		0.6	%		0.4	%		987
22		Dallas/Ft. Worth		5		1,081		0.8	%		0.1	%		738
23		Other EQR		12		2,739		1.9	%		0.5	%		888
		Total		497		134,277		96.7	%		100.0	%		1,309
		Condominium Conversion		2		15		-			-			-
		Military Housing		2		4,595		3.3	%		-			-
		Grand Total		501		138,887		100.0	%		100.0	%		$ 1,309

(1)

Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the month of September 2009.

Equity Residential
Portfolio as of September 30, 2009
									Properties			Units
			Wholly Owned Properties						436			120,378
			Partially Owned Properties:
				Consolidated					26			5,126
				Unconsolidated					37			8,788
			Military Housing (Fee Managed)						2			4,595
									501			138,887
Portfolio Rollforward Q3 2009
($ in thousands)
												Purchase/
						Properties			Units			(Sale) Price			Cap Rate
6/30/2009						526			143,856
Acquisitions:
	Rental Properties (1)					-			-			-			-
Dispositions:
	Rental Properties:
		Consolidated				(24	)		(4,620	)		$ (381,119	)		7.7	%
		Unconsolidated (1) (2)				(2	)		(516	)		$ (37,000	)		7.3	%
	Condominium Conversion Properties					-			(27	)		$ (5,117	)
Completed Developments						1			163
Configuration Changes						-			31
9/30/2009						501			138,887
Portfolio Rollforward 2009
($ in thousands)
												Purchase/
						Properties			Units			(Sale) Price			Cap Rate
12/31/2008						548			147,244
Acquisitions:
	Rental Properties (1)					-			-			-			-
Dispositions:
	Rental Properties:
		Consolidated				(47	)		(8,819	)		$ (734,509	)		7.5	%
		Unconsolidated (1) (2)				(3	)		(732	)		$ (57,700	)		7.5	%
	Condominium Conversion Properties					(1	)		(50	)		$ (9,786	)
Completed Developments						4			1,362
Configuration Changes						-			(118	)
9/30/2009						501			138,887

(1)		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.
(2)		EQR owned a 25% interest in these unconsolidated rental properties. Sale price listed is the gross sale price.

Equity Residential
Third Quarter 2009 vs. Third Quarter 2008
Same Store Results/Statistics
$ in thousands (except for Average Rental Rate) - 119,121 Same Store Units
			Results									Statistics
												Average
												Rental
Description			Revenues			Expenses			NOI (1)			Rate (2)			Occupancy			Turnover
Q3 2009			$ 449,889			$ 170,616			$ 279,273			$ 1,345			93.7	%		18.4	%
Q3 2008			$ 468,168			$ 171,560			$ 296,608			$ 1,390			94.4	%		18.6	%
Change			$ (18,279	)		$ (944	)		$ (17,335	)		$ (45	)		(0.7	%)		(0.2	%)
Change			(3.9	%)		(0.6	%)		(5.8	%)		(3.2	%)
Third Quarter 2009 vs. Second Quarter 2009
Same Store Results/Statistics
$ in thousands (except for Average Rental Rate) - 121,593 Same Store Units
			Results									Statistics
												Average
												Rental
Description			Revenues			Expenses			NOI (1)			Rate (2)			Occupancy			Turnover
Q3 2009			$ 460,738			$ 174,937			$ 285,801			$ 1,350			93.7	%		18.4	%
Q2 2009			$ 465,543			$ 172,152			$ 293,391			$ 1,365			93.6	%		15.1	%
Change			$ (4,805	)		$ 2,785			$ (7,590	)		$ (15	)		0.1	%		3.3	%
Change			(1.0	%)		1.6	%		(2.6	%)		(1.1	%)
September YTD 2009 vs. September YTD 2008
Same Store Results/Statistics
$ in thousands (except for Average Rental Rate) - 115,832 Same Store Units
			Results									Statistics
												Average
												Rental
Description			Revenues			Expenses			NOI (1)			Rate (2)			Occupancy			Turnover
YTD 2009			$ 1,320,158			$ 496,499			$ 823,659			$ 1,353			93.7	%		46.9	%
YTD 2008			$ 1,350,698			$ 493,958			$ 856,740			$ 1,373			94.5	%		48.3	%
Change			$ (30,540	)		$ 2,541			$ (33,081	)		$ (20	)		(0.8	%)		(1.4	%)
Change			(2.3	%)		0.5	%		(3.9	%)		(1.5	%)

(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
Third Quarter 2009 vs. Third Quarter 2008
Same Store Results/Statistics by Market
														Increase (Decrease) from Prior Year's Quarter
						Q3 2009			Q3 2009		Q3 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		6,246		10.2	%		$ 2,599		95.3	%		(7.4	%)		6.3	%		(14.3	%)		(7.0	%)		(0.4	%)
2		DC Northern Virginia		8,781		9.9	%		1,641		95.0	%		(1.2	%)		1.4	%		(2.4	%)		(0.6	%)		(0.6	%)
3		South Florida		12,465		9.2	%		1,282		93.1	%		(1.8	%)		1.9	%		(4.4	%)		(1.8	%)		(0.1	%)
4		Los Angeles		7,064		7.8	%		1,715		93.3	%		(5.2	%)		(1.9	%)		(6.9	%)		(4.4	%)		(0.7	%)
5		Boston		5,609		7.1	%		1,920		95.6	%		1.1	%		(2.8	%)		3.4	%		1.3	%		(0.2	%)
6		Seattle/Tacoma		8,115		6.6	%		1,356		91.2	%		(9.2	%)		0.3	%		(14.3	%)		(5.6	%)		(3.6	%)
7		San Francisco Bay Area		6,200		6.6	%		1,661		93.3	%		(4.7	%)		(0.2	%)		(7.0	%)		(2.9	%)		(1.8	%)
8		Phoenix		10,646		5.1	%		862		91.2	%		(8.2	%)		(0.7	%)		(13.1	%)		(6.4	%)		(1.8	%)
9		San Diego		4,491		5.1	%		1,639		94.7	%		(1.1	%)		(4.8	%)		0.7	%		(1.2	%)		0.0	%
10		Denver		7,416		4.9	%		1,019		94.1	%		(3.4	%)		(0.3	%)		(5.0	%)		(2.6	%)		(0.7	%)
11		Orlando		7,525		4.4	%		982		93.9	%		(4.6	%)		(3.0	%)		(5.6	%)		(4.9	%)		0.3	%
12		Inland Empire, CA		4,219		3.7	%		1,331		94.7	%		(2.3	%)		(6.7	%)		0.1	%		(3.6	%)		1.2	%
13		Atlanta		6,443		3.5	%		964		94.8	%		(4.9	%)		(1.2	%)		(7.7	%)		(4.8	%)		(0.1	%)
14		Orange County, CA		3,175		3.4	%		1,555		93.9	%		(5.0	%)		(2.8	%)		(5.9	%)		(4.5	%)		(0.5	%)
15		Suburban Maryland		4,263		3.3	%		1,201		95.0	%		0.8	%		(3.1	%)		3.1	%		(0.1	%)		0.8	%
16		New England (excluding Boston)		3,477		2.1	%		1,123		94.1	%		(1.1	%)		0.0	%		(2.0	%)		(0.8	%)		(0.3	%)
17		Jacksonville		3,711		2.0	%		883		93.6	%		(3.5	%)		(9.6	%)		0.8	%		(3.2	%)		(0.4	%)
18		Portland, OR		3,113		1.9	%		989		93.7	%		(1.9	%)		1.6	%		(4.1	%)		(0.8	%)		(1.1	%)
19		Tampa		2,598		1.4	%		932		94.1	%		(3.3	%)		(6.4	%)		(0.9	%)		(3.6	%)		0.3	%
20		Raleigh/Durham		2,132		1.0	%		793		93.0	%		(3.7	%)		(0.3	%)		(6.1	%)		(1.7	%)		(1.9	%)
		Top 20 Markets		117,689		99.2	%		1,350		93.7	%		(3.9	%)		(0.6	%)		(5.8	%)		(3.2	%)		(0.7	%)
		All Other Markets		1,432		0.8	%		943		95.0	%		(4.0	%)		0.7	%		(6.8	%)		(4.5	%)		0.6	%
		Total		119,121		100.0	%		$ 1,345		93.7	%		(3.9	%)		(0.6	%)		(5.8	%)		(3.2	%)		(0.7	%)

(1)

Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period.

Equity Residential
Third Quarter 2009 vs. Second Quarter 2009
Same Store Results/Statistics by Market
														Increase (Decrease) from Prior Quarter
						Q3 2009			Q3 2009		Q3 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		6,246		9.9	%		$ 2,599		95.3	%		(2.4	%)		0.9	%		(4.4	%)		(3.0	%)		0.6	%
2		DC Northern Virginia		8,781		9.7	%		1,641		95.0	%		0.7	%		1.0	%		0.6	%		0.0	%		0.7	%
3		South Florida		12,465		8.9	%		1,282		93.1	%		(0.4	%)		3.0	%		(2.8	%)		0.0	%		(0.4	%)
4		Los Angeles		7,099		7.7	%		1,720		93.3	%		(0.9	%)		5.1	%		(3.9	%)		(1.3	%)		0.5	%
5		Boston		6,021		7.6	%		1,989		95.7	%		(0.2	%)		(1.9	%)		0.8	%		(0.9	%)		0.6	%
6		San Francisco Bay Area		6,567		6.8	%		1,657		93.1	%		(1.6	%)		1.0	%		(3.0	%)		(1.8	%)		0.2	%
7		Seattle/Tacoma		8,473		6.7	%		1,352		91.2	%		(3.3	%)		2.1	%		(6.4	%)		(1.8	%)		(1.4	%)
8		Denver		7,755		5.1	%		1,031		94.1	%		(0.2	%)		7.8	%		(4.2	%)		(0.6	%)		0.4	%
9		Phoenix		10,646		5.0	%		862		91.2	%		(3.1	%)		6.2	%		(9.1	%)		(1.5	%)		(1.5	%)
10		San Diego		4,491		4.9	%		1,639		94.7	%		0.6	%		1.5	%		0.1	%		(0.4	%)		0.9	%
11		Orlando		7,690		4.4	%		985		93.9	%		(0.6	%)		0.5	%		(1.3	%)		(1.7	%)		1.1	%
12		Suburban Maryland		5,059		3.9	%		1,192		94.9	%		(1.0	%)		(4.2	%)		0.9	%		(1.5	%)		0.4	%
13		Inland Empire, CA		4,219		3.7	%		1,331		94.7	%		(0.2	%)		3.3	%		(2.0	%)		(0.7	%)		0.5	%
14		Atlanta		6,443		3.4	%		964		94.8	%		(2.0	%)		1.9	%		(5.0	%)		(2.8	%)		0.8	%
15		Orange County, CA		3,175		3.3	%		1,555		93.9	%		(1.4	%)		3.0	%		(3.4	%)		(1.5	%)		0.0	%
16		New England (excluding Boston)		3,477		2.1	%		1,123		94.1	%		(0.2	%)		(2.0	%)		1.3	%		(0.3	%)		0.1	%
17		Jacksonville		3,711		2.0	%		883		93.6	%		(0.6	%)		(8.5	%)		5.1	%		(0.8	%)		0.2	%
18		Portland, OR		3,113		1.8	%		989		93.7	%		(0.1	%)		2.3	%		(1.7	%)		(0.1	%)		0.0	%
19		Tampa		2,598		1.4	%		932		94.1	%		(0.8	%)		(4.7	%)		2.2	%		(1.0	%)		0.1	%
20		Raleigh/Durham		2,132		0.9	%		793		93.0	%		(0.6	%)		7.7	%		(6.1	%)		0.4	%		(0.9	%)
		Top 20 Markets		120,161		99.2	%		1,355		93.7	%		(1.0	%)		1.6	%		(2.6	%)		(1.1	%)		0.1	%
		All Other Markets		1,432		0.8	%		943		95.0	%		(0.7	%)		3.3	%		(3.2	%)		(0.6	%)		(0.1	%)
		Total		121,593		100.0	%		$ 1,350		93.7	%		(1.0	%)		1.6	%		(2.6	%)		(1.1	%)		0.1	%

(1)

Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period.

Equity Residential
September YTD 2009 vs. September YTD 2008
Same Store Results/Statistics by Market
														Increase (Decrease) from Prior Year
						Sept. YTD 09			Sept. YTD 09		Sept. YTD 09
						% 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		6,246		10.6	%		$ 2,666		94.6	%		(3.4	%)		4.6	%		(7.8	%)		(3.4	%)		0.0	%
2		South Florida		11,761		8.8	%		1,282		93.3	%		(2.2	%)		1.6	%		(4.8	%)		(1.8	%)		(0.4	%)
3		DC Northern Virginia		7,661		8.8	%		1,655		94.6	%		(0.8	%)		1.7	%		(2.0	%)		0.2	%		(1.1	%)
4		Los Angeles		6,485		7.6	%		1,722		93.3	%		(2.9	%)		(1.2	%)		(3.8	%)		(2.0	%)		(0.8	%)
5		Seattle/Tacoma		8,115		7.0	%		1,372		92.3	%		(4.1	%)		1.4	%		(7.1	%)		(1.7	%)		(2.3	%)
6		Boston		5,609		7.0	%		1,929		95.0	%		1.1	%		(1.3	%)		2.5	%		2.0	%		(0.9	%)
7		San Francisco Bay Area		6,200		6.9	%		1,690		93.3	%		(1.2	%)		0.1	%		(1.9	%)		1.1	%		(2.2	%)
8		Phoenix		10,238		5.4	%		873		92.6	%		(7.2	%)		0.0	%		(11.6	%)		(5.7	%)		(1.5	%)
9		Denver		7,416		5.1	%		1,023		93.8	%		(1.1	%)		(1.4	%)		(1.0	%)		0.0	%		(1.1	%)
10		San Diego		4,491		5.1	%		1,645		93.9	%		0.1	%		(1.6	%)		1.0	%		0.5	%		(0.3	%)
11		Orlando		7,525		4.5	%		995		93.2	%		(4.5	%)		(1.3	%)		(6.5	%)		(4.0	%)		(0.4	%)
12		Inland Empire, CA		4,219		3.8	%		1,341		94.4	%		(1.7	%)		(2.5	%)		(1.3	%)		(2.3	%)		0.6	%
13		Atlanta		6,443		3.7	%		987		94.1	%		(2.7	%)		1.3	%		(5.7	%)		(1.9	%)		(0.8	%)
14		Orange County, CA		3,175		3.6	%		1,576		94.0	%		(2.4	%)		(1.8	%)		(2.7	%)		(2.1	%)		(0.3	%)
15		Suburban Maryland		3,785		2.8	%		1,165		94.3	%		1.6	%		1.3	%		1.8	%		1.7	%		0.0	%
16		New England (excluding Boston)		3,477		2.1	%		1,120		94.1	%		(1.1	%)		2.7	%		(4.4	%)		(0.7	%)		(0.3	%)
17		Jacksonville		3,711		2.0	%		886		93.4	%		(3.7	%)		(2.0	%)		(4.9	%)		(3.4	%)		(0.3	%)
18		Portland, OR		3,113		1.9	%		989		94.0	%		(0.4	%)		1.4	%		(1.6	%)		0.7	%		(1.0	%)
19		Tampa		2,598		1.4	%		941		94.1	%		(3.0	%)		(1.0	%)		(4.6	%)		(3.2	%)		0.1	%
20		Raleigh/Durham		2,132		1.0	%		793		94.0	%		(1.8	%)		(0.6	%)		(2.7	%)		(0.3	%)		(1.4	%)
		Top 20 Markets		114,400		99.1	%		1,358		93.7	%		(2.3	%)		0.5	%		(3.9	%)		(1.4	%)		(0.8	%)
		All Other Markets		1,432		0.9	%		952		94.5	%		(2.6	%)		0.3	%		(4.4	%)		(2.5	%)		(0.1	%)
		Total		115,832		100.0	%		$ 1,353		93.7	%		(2.3	%)		0.5	%		(3.9	%)		(1.5	%)		(0.8	%)

(1)

Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period.

Equity Residential
Third Quarter 2009 vs. Third Quarter 2008
Same Store Operating Expenses
$ in thousands - 119,121 Same Store Units
													% of Actual
													Q3 2009
			Actual		Actual		$			%			Operating
			Q3 2009		Q3 2008		Change			Change			Expenses
Real estate taxes			$ 45,824		$ 45,061		$ 763			1.7	%		26.9	%
On-site payroll (1)			40,847		41,766		(919	)		(2.2	%)		23.9	%
Utilities (2)			26,165		25,707		458			1.8	%		15.3	%
Repairs and maintenance (3)			26,078		26,963		(885	)		(3.3	%)		15.3	%
Property management costs (4)			16,758		17,673		(915	)		(5.2	%)		9.8	%
Insurance			5,716		5,468		248			4.5	%		3.4	%
Leasing and advertising			4,637		4,032		605			15.0	%		2.7	%
Other operating expenses (5)			4,591		4,890		(299	)		(6.1	%)		2.7	%
Same store operating expenses			$ 170,616		$ 171,560		$ (944	)		(0.6	%)		100.0	%
September YTD 2009 vs. September YTD 2008
Same Store Operating Expenses
$ in thousands - 115,832 Same Store Units
													% of Actual
													YTD 2009
			Actual		Actual		$			%			Operating
			YTD 2009		YTD 2008		Change			Change			Expenses
Real estate taxes			$ 133,538		$ 129,924		$ 3,614			2.8	%		26.9	%
On-site payroll (1)			119,963		119,781		182			0.2	%		24.2	%
Utilities (2)			77,544		76,989		555			0.7	%		15.6	%
Repairs and maintenance (3)			73,134		73,387		(253	)		(0.3	%)		14.7	%
Property management costs (4)			49,176		50,989		(1,813	)		(3.6	%)		9.9	%
Insurance			16,514		15,907		607			3.8	%		3.3	%
Leasing and advertising			11,730		11,654		76			0.7	%		2.4	%
Other operating expenses (5)			14,900		15,327		(427	)		(2.8	%)		3.0	%
Same store operating expenses			$ 496,499		$ 493,958		$ 2,541			0.5	%		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 - Includes expenses recovered 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 September 30, 2009
(Amounts in thousands)
																	Weighted
														Weighted			Average
														Average			Maturities
									Amounts (1)		% of Total			Rates (1)			(years)
Secured									$ 4,885,560		49.7	%		4.90	%		8.9
Unsecured									4,949,560		50.3	%		5.32	%		4.9
			Total						$ 9,835,120		100.0	%		5.11	%		6.9
Fixed Rate Debt:
		Secured - Conventional							$ 4,065,470		41.3	%		5.92	%		7.3
		Unsecured - Public/Private							4,311,989		43.9	%		5.89	%		5.3
			Fixed Rate Debt						8,377,459		85.2	%		5.90	%		6.3
Floating Rate Debt:
		Secured - Conventional							192,462		2.0	%		2.11	%		5.5
		Secured - Tax Exempt							627,628		6.4	%		0.68	%		20.8
		Unsecured - Public/Private							601,971		6.1	%		1.27	%		1.4
		Unsecured - Tax Exempt							35,600		0.3	%		0.40	%		19.2
		Unsecured - Revolving Credit Facility							-		-			-			2.4
			Floating Rate Debt						1,457,661		14.8	%		1.24	%		10.4
Total									$ 9,835,120		100.0	%		5.11	%		6.9
(1)		Net of the effect of any derivative instruments. Weighted average rates are for the nine
		months ended September 30, 2009.
		Note: The Company capitalized interest of approximately $28.7 million and $45.1 million
		during the nine months ended September 30, 2009 and 2008, respectively. The Company
		capitalized interest of approximately $7.7 million and $15.6 million during the
		quarters ended September 30, 2009 and 2008, respectively.
Debt Maturity Schedule as of September 30, 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)
2009				$ 3,315		$ 86,818			$ 90,133		0.9	%		7.53	%		2.34	%
2010				225,798		500,000	(2	)	725,798		7.4	%		7.51	%		2.92	%
2011				1,261,103	(3)	92,819			1,353,922		13.8	%		5.58	%		5.30	%
2012				982,427		3,492			985,919		10.0	%		5.77	%		5.77	%
2013				466,338		101,971			568,309		5.8	%		6.64	%		5.51	%
2014				517,438		-			517,438		5.2	%		5.28	%		5.28	%
2015				355,629		-			355,629		3.6	%		6.41	%		6.41	%
2016				1,089,233		-			1,089,233		11.1	%		5.32	%		5.32	%
2017				1,346,550		456			1,347,006		13.7	%		5.87	%		5.87	%
2018				336,083		44,677			380,760		3.9	%		5.95	%		5.60	%
2019+				1,793,545		627,428			2,420,973		24.6	%		5.86	%		5.06	%
Total				$ 8,377,459		$ 1,457,661			$ 9,835,120		100.0	%		5.82	%		5.22	%

(1)		Net of the effect of any derivative instruments. Weighted average rates are as of September 30, 2009.
(2)		Represents 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 $531.1 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 September 30, 2009
(Amounts in thousands)
												Unamortized
		Coupon			Due				Face			Premium/			Net
		Rate			Date				Amount			(Discount)			Balance
Fixed Rate Notes:
		6.950	%		03/02/11		(1)		$ 114,806			$ 1,457			$ 116,263
		6.625	%		03/15/12				400,000			(722	)		399,278
		5.500	%		10/01/12				350,000			(1,035	)		348,965
		5.200	%		04/01/13		(2)		400,000			(414	)		399,586
		5.250	%		09/15/14				500,000			(305	)		499,695
		6.584	%		04/13/15				300,000			(617	)		299,383
		5.125	%		03/15/16				500,000			(345	)		499,655
		5.375	%		08/01/16				400,000			(1,268	)		398,732
		5.750	%		06/15/17				650,000			(3,942	)		646,058
		7.125	%		10/15/17				150,000			(522	)		149,478
		7.570	%		08/15/26				140,000			-			140,000
		3.850	%		08/15/26		(3)		531,092			(16,196	)		514,896
Fair Value Derivative Adjustments							(2)		(100,000	)		-			(100,000	)
									4,335,898			(23,909	)		4,311,989
Floating Rate Tax Exempt Notes:
		7-Day SIFMA			12/15/28		(4)		35,600			-			35,600
Floating Rate Notes:
					04/01/13		(2)		100,000			-			100,000
Fair Value Derivative Adjustments							(2)		1,971			-			1,971
Term Loan Facility		LIBOR+0.50%			10/05/10		(4)(5)		500,000			-			500,000
									601,971			-			601,971
Revolving Credit Facility:		LIBOR+0.50%			02/28/12		(6)		-			-			-
Total Unsecured Debt									$ 4,973,469			$ (23,909	)		$ 4,949,560

		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.
(2)		$100.0 million in fair value interest rate swaps converts a portion of the 5.200% notes due April 1, 2013 to a floating interest rate.
(3)		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 nine months ended September 30, 2009, the Company repurchased $17.5 million of these notes at a discount to par of approximately 11.6% and recognized a gain on early debt extinguishment of $2.0 million. 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.
(4)		Notes are private. All other unsecured debt is public.
(5)		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.
(6)		As of September 30, 2009, there was no amount outstanding and approximately $1.36 billion available on the Company's unsecured revolving credit facility.

Equity Residential
Selected Unsecured Public Debt Covenants
							September 30,			June 30,
							2009			2009
Total Debt to Adjusted Total Assets (not to exceed 60%)							50.3	%		50.8	%
Secured Debt to Adjusted Total Assets (not to exceed 40%)							25.0	%		25.6	%
Consolidated Income Available for Debt Service to
	Maximum Annual Service Charges
	(must be at least 1.5 to 1)						2.26			2.30
Total Unsecured Assets to Unsecured Debt
	(must be at least 150%)						241.3	%		238.2	%
These selected covenants relate to ERP Operating Limited Partnership's ("ERPOP")
outstanding unsecured public debt. Equity Residential is the general partner of
ERPOP.

Equity Residential
Capital Structure as of September 30, 2009
(Amounts in thousands except for share/unit and per share amounts)
			Secured Debt											$ 4,885,560		49.7	%
			Unsecured Debt											4,949,560		50.3	%
		Total Debt												9,835,120		100.0	%		51.9	%
			Common Shares (includes Restricted Shares)						276,147,420		95.0	%
			Units						14,432,942		5.0	%
		Total Shares and Units							290,580,362		100.0	%
		Common Share Equivalents (see below)							398,038
		Total outstanding at quarter-end							290,978,400
		Common Share Price at September 30, 2009							$ 30.70
														8,933,037		97.8	%
		Perpetual Preferred Equity (see below)												200,000		2.2	%
		Total Equity												9,133,037		100.0	%		48.1	%
		Total Market Capitalization												$18,968,157					100.0	%
Convertible Preferred Equity as of September 30, 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 September 30, 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
									YTD Q309		YTD Q308		Q309		Q308
Weighted Average Amounts Outstanding for Net Income Purposes:
	Common Shares - basic								272,965,818		269,581,967		273,658,165		270,345,399
	Shares issuable from assumed conversion/vesting of:
			- OP Units						16,023,881		17,840,134		15,604,484		17,398,225
			- long-term compensation award shares/units						527,805		2,844,883		952,568		3,051,930
	Total Common Shares and Units - diluted								289,517,504		290,266,984		290,215,217		290,795,554
Weighted Average Amounts Outstanding for FFO Purposes:
	Common Shares - basic								272,965,818		269,581,967		273,658,165		270,345,399
	OP Units - basic								16,023,881		17,840,134		15,604,484		17,398,225
	Total Common Shares and OP Units - basic								288,989,699		287,422,101		289,262,649		287,743,624
	Shares issuable from assumed conversion/vesting of:
			- convertible preferred shares/units						404,004		432,445		400,489		419,822
			- long-term compensation award shares/units						527,805		2,844,883		952,568		3,051,930
	Total Common Shares and Units - diluted								289,921,508		290,699,429		290,615,706		291,215,376
Period Ending Amounts Outstanding:
	Common Shares (includes Restricted Shares)								276,147,420
	Units								14,432,942
	Total Shares and Units								290,580,362

Equity Residential
Partially Owned Entities as of September 30, 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			2			21			26			37
Total units			(1)	-			898			432			3,796			5,126			8,788
Operating information for the nine months
	ended 9/30/09 (at 100%):
	Operating revenue			$ 1,204			$ 5,345			$ 5,325			$ 42,663			$ 54,537			$ 70,762
	Operating expenses			1,877			3,561			2,328			14,924			22,690			32,278
	Net operating (loss) income			(673	)		1,784			2,997			27,739			31,847			38,484
	Depreciation			278			2,918			2,674			11,305			17,175			14,947
	General and administrative/other			51			426			5			19			501			302
	Operating (loss) income			(1,002	)		(1,560	)		318			16,415			14,171			23,235
	Interest and other income			25			14			-			88			127			380
	Other expenses			(314	)		-			-			(13	)		(327	)		-
	Interest:
		Expense incurred, net		(355	)		(3,593	)		(1,592	)		(15,103	)		(20,643	)		(33,794	)
		Amortization of deferred financing costs		(183	)		(186	)		(39	)		(129	)		(537	)		(696	)
	Income and other tax (expense) benefit			(53	)		-			-			(34	)		(87	)		(117	)
	Net (loss) income			$ (1,882	)		$ (5,325	)		$ (1,313	)		$ 1,224			$ (7,296	)		$ (10,992	)
Debt - Secured (2):
		EQR Ownership (3)		$ 340,813			$ 192,516			$ 61,260			$ 219,171			$ 813,760			$ 105,266
		Noncontrolling Ownership		-			-			-			82,786			82,786			315,798
Total (at 100%)				$ 340,813			$ 192,516			$ 61,260			$ 301,957			$ 896,546			$ 421,064

(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 $43.6 million, July 1, 2019, 5.305%. A portion of this mortgage debt is also partially collateralized by $22.0 million in unconsolidated restricted cash set aside from the net proceeds of property sales. The Company acquired its partner's interest in one of the previously unconsolidated properties containing 250 units in the third quarter of 2009 for $18.5 million and as a result, the project is now consolidated and wholly owned.

Equity Residential
Consolidated Development Projects as of September 30, 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		$ 257,775		$ 257,775		$ -			97	%		42	%		36	%		Q4 2009		Q1 2011
Reserve at Town Center II			Mill Creek, WA		100		24,464		18,557		18,557		-			84	%		35	%		13	%		Q4 2009		Q3 2010
Redmond Way			Redmond, WA		250		84,382		44,669		44,669		-			48	%		-			-			Q1 2011		Q1 2012
Projects Under Development - Wholly Owned					830		378,804		321,001		321,001		-
Projects Under Development - Partially Owned:
Red Road Commons			South Miami, FL		404		128,816		124,664		124,664		68,669			97	%		64	%		64	%		Q4 2009		Q3 2011
The Brooklyner (a.k.a. 111 Lawrence Street)			Brooklyn, NY		492		283,968		195,636		195,636		74,291			71	%		-			-			Q2 2010		Q3 2011
Westgate			Pasadena, CA		480		170,558		112,530		112,530		163,160	(2	)	59	%		-			-			Q2 2011		Q2 2012
Projects Under Development - Partially Owned					1,376		583,342		432,830		432,830		306,120
Projects Under Development					2,206		962,146		753,831		753,831		306,120	(3			)
Land Held for Development					N/A		N/A		239,158		239,158		34,693
Land/Projects Held for and/or Under Development					2,206		962,146		992,989		992,989		340,813
Completed Not Stabilized - Wholly Owned (4):
Mosaic at Metro			Hyattsville, MD		260		60,383		59,692		-		45,507						95	%		95	%		Completed		Q4 2009
Third Square (a.k.a. 303 Third Street) (5)			Cambridge, MA		482		257,457		255,127		-		-						83	%		81	%		Completed		Q2 2010
Reunion at Redmond Ridge			Redmond, WA		321		53,175		53,151		-		-						47	%		45	%		Completed		Q3 2010
Projects Completed Not Stabilized - Wholly Owned					1,063		371,015		367,970		-		45,507
Completed Not Stabilized - Partially Owned (4):
1401 South State (a.k.a. City Lofts)			Chicago, IL		278		68,923		68,445		-		52,124						92	%		88	%		Completed		Q4 2009
Veridian (a.k.a. Silver Spring)			Silver Spring, MD		457		149,962		148,920		-		112,511						92	%		86	%		Completed		Q1 2010
Montclair Metro			Montclair, NJ		163		48,730		43,930		-		27,881						18	%		4	%		Completed		Q2 2010
Projects Completed Not Stabilized - Partially Owned					898		267,615		261,295		-		192,516
Projects Completed Not Stabilized					1,961		638,630		629,265		-		238,023
Completed and Stabilized During the Quarter - Wholly Owned:
Crowntree Lakes			Orlando, FL		352		56,631		56,631		-		-						97	%		93	%		Completed		Stabilized
Projects Completed and Stabilized During the Quarter - Wholly Owned					352		56,631		56,631		-		-
Projects Completed and Stabilized During the Quarter					352		56,631		56,631		-		-
Total Projects					4,519		$ 1,657,407		$ 1,678,885		$ 992,989		$ 578,836
NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS																Total Capital Cost (1)			Q3 2009 NOI
Projects Under Development																$ 962,146			$ 224
Completed Not Stabilized																638,630			2,656
Completed and Stabilized During the Quarter																56,631			510
Total Development NOI Contribution																$ 1,657,407			$ 3,390

(1)		Total capital cost represents estimated development cost for projects under development 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 $59.4 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 September 30, 2009.
(3)		Of the approximately $208.3 million of capital cost remaining to be funded at 9/30/09 for projects under development, $150.5 million will be funded by fully committed third party bank loans and the remaining $57.8 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 95% occupied. Phase II is 63% leased and 59% occupied.

Equity Residential
Repairs and Maintenance Expenses and Capital Expenditures to Real Estate
For the Nine Months Ended September 30, 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)			115,832		$ 73,134		$ 631		$ 59,057		$ 510		$ 132,191		$ 1,141		$ 54,529			$ 471		$ 31,987			$ 276		$ 86,516		$ 747	(9	)	$ 218,707		$ 1,888
Non-Same Store Properties (7)			9,657		6,253		677		4,107		444		10,360		1,121		1,784			193		2,508			272		4,292		465			14,652		1,586
Other (8)			15		1,433				6,253				7,686				1,481					760					2,241					9,927
Total			125,504		$ 80,820				$ 69,417				$ 150,237				$ 57,794					$ 35,255					$ 93,049					$ 243,286

(1)		Total Units - Excludes 8,788 unconsolidated units and 4,595 military housing (fee managed) 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 $21.3 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 1/1/08. Per unit amounts are based on a weighted average of 9,239 units.
(8)		Other - Primarily includes expenditures for properties sold during the period, Equity Corporate Housing and condominium conversion properties.
(9)		For 2009, the Company estimates that it will spend approximately $1,050 per unit of capital expenditures for its same store properties inclusive of unit renovation/rehab costs, or $800 per unit excluding unit renovation/rehab costs.

Equity Residential
Discontinued Operations
(Amounts in thousands)
			Nine Months Ended						Quarter Ended
			September 30,						September 30,
			2009			2008			2009			2008
REVENUES
Rental income			$ 52,595			$ 120,729			$ 8,502			$ 33,910
	Total revenues		52,595			120,729			8,502			33,910
EXPENSES (1)
Property and maintenance			18,707			36,972			3,857			10,796
Real estate taxes and insurance			6,094			14,465			1,045			3,923
Property management			-			(62	)		-			-
Depreciation			12,761			30,274			2,175			8,380
General and administrative			29			24			4			7
Total expenses			37,591			81,673			7,081			23,106
Discontinued operating income			15,004			39,056			1,421			10,804
Interest and other income			12			233			2			93
Interest (2):
	Expense incurred, net		(308	)		(1,493	)		2			(479	)
	Amortization of deferred financing costs		(32	)		(3	)		-			(1	)
Income and other tax (expense) benefit			(86	)		1,014			(19	)		359
Discontinued operations			14,590			38,807			1,406			10,776
Net gain on sales of discontinued operations			274,933			365,052			129,135			150,255
Discontinued operations, net			$ 289,523			$ 403,859			$ 130,541			$ 161,031

(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 Q3
										2009 to Actual Q3 2009
										Amounts			Per Share
	Guidance midpoint Q3 2009 FFO - Diluted (1) (2)									$ 146,393			$ 0.505
	Property NOI									5,617			0.019
	Debt extinguishment gains									2,435			0.008
	Interest expense									1,458			0.005
	Other expenses (write-off of pursuit costs)									(1,672	)		(0.006	)
	Other									205			-
	Actual Q3 2009 FFO - Diluted (1) (2)									$ 154,436			$ 0.531
Non-Comparable Items (3)
				Nine Months Ended September 30,									Quarter Ended September 30,
				2009			2008			Variance			2009			2008			Variance
Impairment				$ (11,124	)		$ -			$ (11,124	)		$ -			$ -			$ -
Debt extinguishment gains (interest and other income)				4,455			266			4,189			2,435			266			2,169
Gain on sale of investment securities (interest and other income)				4,943			-			4,943			-			-			-
Non-cash convertible debt discount (includes extinguishment write-offs)				(7,165	)		(7,554	)		389			(2,140	)		(2,518	)		378
Debt extinguishment costs (interest):
Prepayment penalties				(35	)		(41	)		6			-			(41	)		41
Write-off of unamortized deferred financing costs				(2,328	)		(169	)		(2,159	)		(893	)		(163	)		(730	)
Write-off of unamortized premiums/(discounts)/(OCI)				(758	)		(25	)		(733	)		-			(25	)		25
EQR 25% share of unconsolidated defeasance costs
((loss) income from investments in unconsolidated entities)				(1,775	)		-			(1,775	)		-			-			-
Net gain on sales of land parcels				-			2,976			(2,976	)		-			2,976			(2,976	)
Net incremental (loss) gain on sales of condominium units				(450	)		(2,643	)		2,193			(785	)		447			(1,232	)
Other				(4,655	)		(1,644	)		(3,011	)		(2,813	)		(1,179	)		(1,634	)
Net non-comparable items (3)				$ (18,892	)		$ (8,834	)		$ (10,058	)		$ (4,196	)		$ (237	)		$ (3,959	)
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.
2009 Earnings Guidance (per share diluted)
					Q4 2009		2009
Expected FFO (1) (2)					$0.49 to $0.53		$2.18 to $2.22
2009 Same Store Assumptions
Physical occupancy							93.7%
Revenue change							(3.0%)
Expense change							0.5%
NOI change							(5.0%)
(Note: 25 basis point change in NOI percentage = $0.01 per share change in EPS/FFO)
2009 Transaction Assumptions
Consolidated rental acquisitions							$150.0 million
Consolidated rental dispositions							$900.0 million
Capitalization rate spread							125 basis points
2009 Debt Assumptions
Weighted average debt outstanding							$9.9 billion to $10.0 billion
Weighted average interest rate (reduced for capitalized interest and including prepayment penalties)							4.84%
Interest expense							$479.0 million to $484.0 million
Unrestricted cash at 12/31/09							$580.0 million
Note: Debt guidance assumes no additional debt offerings and no additional debt extinguishments, but does include approximately $9.3 million of interest expense for the requirement to expense the implied option value inherent in convertible debt. This change does not affect the Company's continued compliance with its financial or debt covenants.
2009 Other Guidance Assumptions
General and administrative expense							$40.0 million
Interest and other income							$16.5 million
Income and other tax expense							$3.5 million
Net gain on sales of land parcels							No amounts budgeted
Preferred share redemptions							No amounts budgeted
Equity ATM share offerings							No amounts budgeted
Weighted average Common Shares and Units - Diluted							290.0 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 Q3 2009						Q4 2009		2009
		Amounts			Per Share			Per Share		Per Share
Expected Earnings - Diluted (4)		$ 141,864			$ 0.490			$0.24 to $0.28		$1.37 to $1.41
Add: Expected depreciation expense		148,341			0.512			0.51		2.05
Less: Expected net gain on sales (4)		(143,812	)		(0.497	)		(0.26)		(1.24)
Expected FFO - Diluted (1) (2)		$ 146,393			$ 0.505			$0.49 to $0.53		$2.18 to $2.22

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 September YTD 2009 and Third Quarter 2009 Same Store Properties:
		Nine Months Ended September 30,						Quarter Ended September 30,
		2009			2008			2009			2008
Operating income		$ 400,768			$ 433,409			$ 133,096			$ 148,175
Adjustments:
Non-same store operating results		(55,423	)		(27,128	)		(10,459	)		(6,394	)
Fee and asset management revenue		(7,928	)		(7,397	)		(2,653	)		(2,387	)
Fee and asset management expense		5,916			6,154			1,931			1,983
Depreciation		438,726			417,662			147,477			145,382
General and administrative		30,476			34,040			9,881			9,849
Impairment		11,124			-			-			-
Same store NOI		$ 823,659			$ 856,740			$ 279,273			$ 296,608