Equity Residential Reports Third Quarter Results

Equity Residential (NYSE: EQR) today reported results for the quarter and nine months ended September 30, 2008. All per share results are reported on a fully-diluted basis.

"We are very pleased with our operating performance for the third quarter and the first nine months of the year as we have maintained strong occupancy and realized good revenue growth across most of our major markets,” said David J. Neithercut, Equity Residential’s President and CEO. "However, our markets are currently experiencing significant headwinds due to the slowing economy and resulting job losses which will slow revenue growth, as we expected, in the fourth quarter and cause property fundamentals to further weaken in 2009.”

Third Quarter 2008

For the quarter ended September 30, 2008, the company reported earnings of $0.64 per share compared to $1.62 per share in the third quarter of 2007. The decrease is primarily attributable to lower gains on property sales due to a lower volume of property sales in 2008.

Funds from Operations (FFO) for the quarter ended September 30, 2008 were $0.65 per share compared to $0.58 per share in the same period of 2007. The $0.07 per share increase in the third quarter of 2008 is due primarily to:

• A positive impact of approximately $0.06 per share as a result of higher net operating income (NOI) from the company’s same store portfolio and the lease up of development and other non-same store properties;
• A negative impact of approximately $0.03 per share from dilution due to the company’s decision to be a net seller of assets over the past several quarters;
• A net cumulative positive impact on interest expense and preferred share distributions of approximately $0.05 per share due primarily to lower floating rates of interest and lower preferred share redemption costs;
• A negative impact of approximately $0.02 per share from the company’s condominium operations and impairment of halted condominium conversions; and
• The net positive impact of $0.01 per share due to gain on a land sale and lower G&A expense offset by lower interest and other income and certain other non-comparable items listed on page 24 of this release.

Nine Months Ended September 30, 2008

For the nine months ended September 30, 2008, the company reported earnings of $1.62 per share compared to $2.93 per share in the same period of 2007.

FFO for the nine months ended September 30, 2008 were $1.88 per share compared to $1.73 per share in the same period of 2007.

Same Store Results

On a same store third quarter to third quarter comparison, which includes 122,380 apartment units, revenues increased 3.4%, expenses increased 2.6% and NOI increased 3.9%. The increase in same store revenues was driven primarily by an increase in average rental rates.

On a same store nine-month to nine-month comparison, which includes 115,713 apartment units, revenues increased 3.6%, expenses increased 2.1% and NOI increased 4.4%. The increase in same store revenues was driven primarily by an increase in average rental rates.

Acquisitions/Dispositions

During the third quarter of 2008, the company did not acquire any properties but sold 11 properties, consisting of 3,513 apartment units, for an aggregate sale price of $328.5 million at an average capitalization (cap) rate of 5.9% generating an unlevered internal rate of return (IRR) of 10.8%. In addition, the company sold 25 condominium units for an aggregate sale price of $6.1 million and one land parcel for $3.3 million.

During the first nine months of 2008, the company acquired six properties, consisting of 1,837 apartment units, for an aggregate purchase price of $336.9 million at an average cap rate of 5.9%, as well as an uncompleted development property for a purchase price of $31.7 million.

Also during the first nine months of 2008, the company sold 34 properties, consisting of 8,795 apartment units, for an aggregate sale price of $807.0 million at an average cap rate of 5.8% generating an unlevered IRR of 10.8%. In addition, the company sold 98 condominium units for an aggregate sale price of $21.6 million and one land parcel for $3.3 million.

Liquidity

On August 26, 2008 the company announced that it closed a $550 million secured loan originated by Wells Fargo (NYSE: WFC) for repurchase by Fannie Mae (NYSE: FNM). The loan is interest only and matures in 11.5 years with the first 10.5 years fixed and the last year at a floating rate of interest. The all-in effective interest rate is approximately 6%.

The company currently has approximately $450 million of cash and cash equivalents and approximately $1.3 billion available on its unsecured revolving credit facility. The company anticipates having cash and cash equivalents of approximately $660 million and approximately $1.3 billion available on its unsecured revolving credit facility at December 31, 2008. Management believes that these existing funding sources will give the company sufficient liquidity to meet its future funding requirements.

Fourth Quarter 2008 Earnings Guidance

The company has established an FFO guidance range of $0.60 to $0.65 per share for the fourth quarter of 2008. Interest expense is expected to be approximately $0.02 per share higher in the quarter from what the company previously forecasted due to increased LIBOR and tax exempt floating rates of interest. Also, the company has greatly slowed its acquisition efforts while continuing to sell properties which has created substantial liquidity, but will also reduce expected NOI by approximately $0.02 per share in the fourth quarter. The company used a portion of that liquidity to purchase certain of its debt at a substantial discount to par which will add a previously unbudgeted $0.04 per share to its fourth quarter results.

Impact on 2009 Earnings from Adoption of FASB Staff Position APB 14-1

The company will provide guidance for 2009 performance in its fourth quarter 2008 earnings release in February 2009. At this time, it should be noted that the company’s earnings will be reduced by $0.03 to $0.04 per share by the mandatory adoption of FASB Staff Position APB 14-1, which requires companies to expense certain implied costs of the option value related to convertible debt beginning January 1, 2009. The company expects that FFO will be reduced by a similar amount. This non-cash charge will have no material impact on the company’s debt coverage ratios or debt covenants.

Fourth Quarter 2008 Conference Call

Equity Residential expects to announce fourth quarter 2008 results on Wednesday, February 4, 2009 and host a conference call to discuss those results at 10:00 a.m. CT on Thursday, February 5, 2009.

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 554 properties located in 23 states and the District of Columbia, consisting of 147,326 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 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 2008 will take place tomorrow, Thursday, October 30, 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,
		2008			2007			2008			2007
	REVENUES
	Rental income	$ 1,566,821			$ 1,440,041			$ 535,932			$ 498,868
	Fee and asset management	7,397			6,937			2,387			2,234
	Total revenues	1,574,218			1,446,978			538,319			501,102
	EXPENSES
	Property and maintenance	409,755			378,586			141,555			132,162
	Real estate taxes and insurance	162,470			149,521			55,206			49,765
	Property management	59,536			68,960			18,902			21,698
	Fee and asset management	6,154			6,604			1,983			2,100
	Depreciation	437,935			420,347			152,157			143,987
	General and administrative	34,040			33,182			9,849			12,366
	Impairment	2,800			1,020			2,097			626
	Total expenses	1,112,690			1,058,220			381,749			362,704
	Operating income	461,528			388,758			156,570			138,398
	Interest and other income	11,019			12,335			2,838			6,119
	Interest:
	Expense incurred, net	(355,035	)		(360,207	)		(120,304	)		(128,214	)
	Amortization of deferred financing costs	(6,751	)		(7,853	)		(2,411	)		(2,031	)
	Income before income and other taxes, allocation to Minority Interests, income from investments in unconsolidated entities, net gain on sales of unconsolidated entities and land parcels and discontinued operations	110,761			33,033			36,693			14,272
	Income and other tax (expense) benefit	(5,941	)		(1,468	)		(1,317	)		(770	)
	Allocation to Minority Interests:
	Operating Partnership, net	(5,880	)		(856	)		(2,124	)		(417	)
	Preference Interests and Units	(11	)		(437	)		(4	)		(3	)
	Partially Owned Properties	(1,765	)		(997	)		(106	)		(218	)
	Income from investments in unconsolidated entities	60			185			250			548
	Net gain on sales of unconsolidated entities	-			2,629			-			2,629
	Net gain on sales of land parcels	2,976			5,230			2,976			714
	Income from continuing operations, net of minority interests	100,200			37,319			36,368			16,755
	Discontinued operations, net of minority interests	351,135			829,026			141,873			440,952
	Net income	451,335			866,345			178,241			457,707
	Preferred distributions	(10,887	)		(19,157	)		(3,628	)		(4,317	)
	Premium on redemption of Preferred Shares	-			(6,144	)		-			(6,144	)
	Net income available to Common Shares	$ 440,448			$ 841,044			$ 174,613			$ 447,246
	Earnings per share - basic:
	Income from continuing operations available to Common Shares	$ 0.33			$ 0.04			$ 0.12			$ 0.02
	Net income available to Common Shares	$ 1.63			$ 2.97			$ 0.65			$ 1.64
	Weighted average Common Shares outstanding	269,582			282,847			270,345			272,086
	Earnings per share - diluted:
	Income from continuing operations available to Common Shares	$ 0.33			$ 0.04			$ 0.12			$ 0.02
	Net income available to Common Shares	$ 1.62			$ 2.93			$ 0.64			$ 1.62
	Weighted average Common Shares outstanding	290,267			306,052			290,795			294,331
	Distributions declared per Common Share outstanding	$ 1.4475			$ 1.3875			$ 0.4825			$ 0.4625

	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,
					2008			2007			2008			2007
	Net income				$ 451,335			$ 866,345			$ 178,241			$ 457,707
	Allocation to Minority Interests - Operating Partnership, net				5,880			856			2,124			417
	Adjustments:
	Depreciation				437,935			420,347			152,157			143,987
	Depreciation - Non-real estate additions				(6,057	)		(6,137	)		(1,976	)		(1,964	)
	Depreciation - Partially Owned and Unconsolidated Properties				3,103			3,262			1,063			1,181
	Net gain on sales of unconsolidated entities				-			(2,629	)		-			(2,629	)
	Discontinued operations:
	Depreciation				10,001			45,688			1,605			10,307
	Gain on sales of discontinued operations, net of minority interests				(342,419	)		(793,759	)		(141,135	)		(432,143	)
	Net incremental (loss) gain on sales of condominium units				(2,643	)		18,773			447			5,186
	Minority Interests - Operating Partnership				576			2,387			48			608
	FFO (1)(2)				557,711			555,133			192,574			182,657
	Preferred distributions				(10,887	)		(19,157	)		(3,628	)		(4,317	)
	Premium on redemption of Preferred Shares				-			(6,144	)		-			(6,144	)
	FFO available to Common Shares and OP Units - basic (1) (2)				$ 546,824			$ 529,832			$ 188,946			$ 172,196
	FFO available to Common Shares and OP Units - diluted (1) (2)				$ 547,327			$ 530,420			$ 189,108			$ 172,385
	FFO per share and OP Unit - basic				$ 1.90			$ 1.75			$ 0.66			$ 0.59
	FFO per share and OP Unit - diluted				$ 1.88			$ 1.73			$ 0.65			$ 0.58
	Weighted average Common Shares and
	OP Units outstanding - basic				287,422			301,986			287,744			290,977
	Weighted average Common Shares and
	OP Units outstanding - diluted				290,699			306,557			291,215			294,819

(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 OP 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 "Minority Interests - Operating Partnership". Subject to certain restrictions, the Minority 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 OP 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 OP 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 OP 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 OP 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 OP 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.

	EQUITY RESIDENTIAL
	CONSOLIDATED BALANCE SHEETS
	(Amounts in thousands except for share amounts)
	(Unaudited)
			September 30,			December 31,
			2008			2007
	ASSETS
	Investment in real estate
	Land		$ 3,653,808			$ 3,607,305
	Depreciable property		13,760,599			13,556,681
	Projects under development		852,597			828,530
	Land held for development		366,822			340,834
	Investment in real estate		18,633,826			18,333,350
	Accumulated depreciation		(3,422,371	)		(3,170,125	)
	Investment in real estate, net		15,211,455			15,163,225
	Cash and cash equivalents		530,050			50,831
	Investments in unconsolidated entities		3,131			3,547
	Deposits - restricted		395,658			253,276
	Escrow deposits - mortgage		21,834			20,174
	Deferred financing costs, net		54,210			56,271
	Other assets		150,986			142,453
	Total assets		$ 16,367,324			$ 15,689,777
	LIABILITIES AND SHAREHOLDERS' EQUITY
	Liabilities:
	Mortgage notes payable		$ 4,493,886			$ 3,605,971
	Notes, net		5,607,519			5,763,762
	Lines of credit		-			139,000
	Accounts payable and accrued expenses		173,658			109,385
	Accrued interest payable		79,572			124,717
	Other liabilities		313,629			322,975
	Security deposits		64,066			62,159
	Distributions payable		141,629			141,244
	Total liabilities		10,873,959			10,269,213
	Commitments and contingencies
	Minority Interests:
	Operating Partnership		310,572			331,626
	Preference Interests and Units		184			184
	Partially Owned Properties		26,506			26,236
	Total Minority Interests		337,262			358,046
	Shareholders' equity:
	Preferred Shares of beneficial interest, $0.01 par value;
	100,000,000 shares authorized; 1,961,975 shares issued
	and outstanding as of September 30, 2008 and 1,986,475
	shares issued and outstanding as of December 31, 2007		209,049			209,662
	Common Shares of beneficial interest, $0.01 par value;
	1,000,000,000 shares authorized; 272,022,884 shares issued
	and outstanding as of September 30, 2008 and 269,554,661
	shares issued and outstanding as of December 31, 2007		2,720			2,696
	Paid in capital		4,323,140			4,266,538
	Retained earnings		647,871			599,504
	Accumulated other comprehensive loss		(26,677	)		(15,882	)
	Total shareholders' equity		5,156,103			5,062,518
	Total liabilities and shareholders' equity		$ 16,367,324			$ 15,689,777

		EQUITY RESIDENTIAL
		Portfolio Summary
		As of September 30, 2008
		Markets		Properties		Units		% of Total Units		% of 2008 Stabilized NOI		Average Rental Rate (1)
1		New York Metro Area		22		6,246		4.2%		10.3%		$ 2,785
2		DC Northern Virginia		26		8,781		6.0%		8.4%		1,655
3		Los Angeles		38		7,749		5.3%		8.3%		1,789
4		South Florida		39		12,897		8.7%		8.2%		1,288
5		Seattle/Tacoma		49		11,138		7.6%		7.3%		1,354
6		Boston		37		6,217		4.2%		6.3%		1,899
7		San Francisco Bay Area		34		6,731		4.6%		6.1%		1,719
8		Phoenix		41		11,780		8.0%		5.6%		917
9		Denver		25		8,606		5.8%		4.9%		1,028
10		San Diego		14		4,491		3.0%		4.4%		1,659
11		Orlando		26		8,042		5.5%		4.3%		1,028
12		Atlanta		30		9,110		6.2%		4.1%		950
13		Inland Empire, CA		15		4,655		3.2%		3.7%		1,378
14		Suburban Maryland		21		5,559		3.8%		3.3%		1,195
15		Orange County, CA		10		3,307		2.2%		3.2%		1,621
16		New England (excluding Boston)		33		4,925		3.3%		2.6%		1,110
17		Jacksonville		12		3,951		2.7%		1.9%		894
18		Portland, OR		11		3,713		2.5%		1.8%		974
19		Tampa/Ft. Myers		11		3,414		2.3%		1.4%		921
20		Dallas/Ft. Worth		15		3,631		2.5%		1.4%		932
		Top 20 Total		509		134,943		91.6%		97.5%		1,354
21		Raleigh/Durham		12		3,058		2.1%		1.2%		808
22		Central Valley, CA		10		1,621		1.1%		0.8%		1,080
23		Other EQR		17		3,784		2.6%		0.5%		877
		Total		548		143,406		97.4%		100.0%		1,327
		Condominium Conversion		5		189		0.1%		-		-
		Military Housing		1		3,731		2.5%		-		-
		Grand Total		554		147,326		100.0%		100.0%		$ 1,327

(1) Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the month of September 2008.

			EQUITY RESIDENTIAL
Portfolio as of September 30, 2008
							Properties		Units
			Wholly Owned Properties				481		127,440
			Partially Owned Properties:
			Consolidated				28		5,709
			Unconsolidated				44		10,446
			Military Housing (Fee Managed)				1		3,731
							554		147,326

Portfolio Rollforward Q3 2008
					Properties			Units			$ Thousands			Cap Rate
			6/30/2008		564			150,699
	Acquisitions:
		Rental Properties			-			-			-			-
	Dispositions:
		Rental Properties			(11	)		(3,513	)		$ (328,450	)		5.9	%
		Condominium Conversion Properties			-			(25	)		$ (6,146	)
		Land Parcel (one)			-			-			$ (3,300	)
	Completed Developments				1			165
			9/30/2008		554			147,326
Portfolio Rollforward 2008
					Properties			Units			$ Thousands			Cap Rate
			12/31/2007		579			152,821
	Acquisitions:
		Rental Properties			6			1,837			$ 336,863			5.9	%
		Uncompleted Developments (1)			-			-			$ 31,705
	Dispositions:
		Rental Properties			(34	)		(8,795	)		$ (806,999	)		5.8	%
		Condominium Conversion Properties			(3	)		(98	)		$ (21,644	)
		Land Parcel (one)			-			-			$ (3,300	)
	Completed Developments				6			1,558
	Configuration Changes				-			3
			9/30/2008		554			147,326

(1) Represents the acquisition of Mosaic at Metro in Hyattsville, Maryland. See the Consolidated Development Projects on page 20 for further information.

EQUITY RESIDENTIAL
Third Quarter 2008 vs. Third Quarter 2007
Quarter over Quarter Same Store Results/Statistics
$ in Thousands (except for Average Rental Rate) - 122,380 Same Store Units
		Results									Statistics
Description		Revenues			Expenses			NOI (1)			Average Rental Rate (2)			Occupancy			Turnover
Q3 2008		$ 466,810			$ 171,644			$ 295,166			$ 1,348			94.4	%		18.6	%
Q3 2007		$ 451,257			$ 167,271			$ 283,986			$ 1,305			94.3	%		19.1	%
Change		$ 15,553			$ 4,373			$ 11,180			$ 43			0.1	%		(0.5	%)
Change		3.4	%		2.6	%		3.9	%		3.3	%
Third Quarter 2008 vs. Second Quarter 2008
Sequential Quarter over Quarter Same Store Results/Statistics
$ in Thousands (except for Average Rental Rate) - 126,281 Same Store Units
		Results									Statistics
Description		Revenues			Expenses			NOI (1)			Average Rental Rate (2)			Occupancy			Turnover
Q3 2008		$ 486,402			$ 179,356			$ 307,046			$ 1,361			94.4	%		18.7	%
Q2 2008		$ 483,326			$ 175,271			$ 308,055			$ 1,346			94.9	%		16.0	%
Change		$ 3,076			$ 4,085			$ (1,009	)		$ 15			(0.5	%)		2.7	%
Change		0.6	%		2.3	%		(0.3	%)		1.1	%
September YTD 2008 vs. September YTD 2007
YTD over YTD Same Store Results/Statistics
$ in Thousands (except for Average Rental Rate) - 115,713 Same Store Units
		Results									Statistics
Description		Revenues			Expenses			NOI (1)			Average Rental Rate (2)			Occupancy			Turnover
YTD 2008		$1,308,557			$ 478,070			$ 830,487			$ 1,330			94.6	%		48.1	%
YTD 2007		$1,263,482			$ 468,081			$ 795,401			$ 1,283			94.7	%		48.8	%
Change		$ 45,075			$ 9,989			$ 35,086			$ 47			(0.1	%)		(0.7	%)
Change		3.6	%		2.1	%		4.4	%		3.7	%

(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
	Same Store NOI Reconciliation
	Third Quarter 2008 vs. Third Quarter 2007
	The following table presents a reconciliation of operating income per the consolidated statements of operations to NOI for the Third Quarter 2008 Same Store Properties:
				Quarter Ended September 30,
				2008			2007
				(Amounts in thousands)
	Operating income			$ 156,570			$ 138,398
	Adjustments:
	Non-same store operating results			(25,103	)		(11,257	)
	Fee and asset management revenue			(2,387	)		(2,234	)
	Fee and asset management expense			1,983			2,100
	Depreciation			152,157			143,987
	General and administrative			9,849			12,366
	Impairment			2,097			626
	Same store NOI			$ 295,166			$ 283,986
	Same Store NOI Reconciliation
	September YTD 2008 vs. September YTD 2007
	The following table presents a reconciliation of operating income per the consolidated statements of operations to NOI for the Nine-Month 2008 Same Store Properties:
				Nine Months Ended September 30,
				2008			2007
				(Amounts in thousands)
	Operating income			$ 461,528			$ 388,758
	Adjustments:
	Non-same store operating results			(104,573	)		(47,573	)
	Fee and asset management revenue			(7,397	)		(6,937	)
	Fee and asset management expense			6,154			6,604
	Depreciation			437,935			420,347
	General and administrative			34,040			33,182
	Impairment			2,800			1,020
	Same store NOI			$ 830,487			$ 795,401

EQUITY RESIDENTIAL
Third Quarter 2008 vs. Third Quarter 2007
Same Store Results by Market
											Increase (Decrease) from Prior Year's Quarter
					Q3 2008		Q3 2008	Q3 2008
					% 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		5,922	10.4	%	$ 2,727	95.5	%		5.5	%		6.1	%	5.1	%	5.3	%	0.2	%
2		South Florida		11,761	8.6	%	1,305	93.3	%		1.3	%		(0.2	%)	2.3	%	(0.6	%)	1.8	%
3		Los Angeles		6,863	7.7	%	1,773	94.1	%		2.3	%		4.3	%	1.4	%	3.4	%	(1.0	%)
4		Seattle/Tacoma		8,708	7.7	%	1,410	94.8	%		8.6	%		7.1	%	9.5	%	9.6	%	(0.8	%)
5		DC Northern Virginia		6,870	7.1	%	1,554	96.0	%		4.9	%		4.7	%	5.0	%	3.1	%	1.6	%
6		San Francisco Bay Area		6,211	6.8	%	1,711	95.0	%		7.8	%		0.2	%	12.2	%	8.7	%	(0.7	%)
7		Boston		5,805	6.6	%	1,871	95.8	%		2.9	%		3.7	%	2.4	%	2.9	%	0.0	%
8		Phoenix		10,238	5.4	%	919	93.0	%		(1.2	%)		2.8	%	(3.7	%)	(1.4	%)	0.1	%
9		Denver		7,502	4.7	%	1,016	94.9	%		6.3	%		3.5	%	7.9	%	6.1	%	0.2	%
10		San Diego		4,262	4.6	%	1,658	94.7	%		3.8	%		0.8	%	5.3	%	4.5	%	(0.6	%)
11		Orlando		7,525	4.4	%	1,032	93.6	%		(2.3	%)		0.3	%	(4.0	%)	(1.7	%)	(0.6	%)
12		Atlanta		7,926	4.3	%	988	94.8	%		2.1	%		3.0	%	1.4	%	2.6	%	(0.5	%)
13		Inland Empire, CA		4,355	3.6	%	1,380	93.0	%		1.3	%		1.0	%	1.4	%	1.0	%	0.3	%
14		Orange County, CA		3,175	3.4	%	1,628	94.4	%		2.9	%		(1.1	%)	4.8	%	4.4	%	(1.3	%)
15		New England (excluding Boston)		4,925	3.0	%	1,118	94.4	%		1.4	%		3.0	%	0.2	%	1.5	%	(0.1	%)
16		Suburban Maryland		3,687	2.7	%	1,187	94.9	%		11.4	%		0.5	%	18.9	%	7.1	%	3.6	%
17		Portland, OR		3,409	2.0	%	987	94.7	%		3.8	%		0.5	%	6.0	%	5.0	%	(1.1	%)
18		Jacksonville		3,231	1.6	%	895	93.9	%		(3.9	%)		3.0	%	(8.3	%)	(2.9	%)	(1.0	%)
19		Dallas/Ft. Worth		2,601	1.4	%	1,010	95.8	%		5.3	%		6.7	%	4.3	%	4.3	%	0.9	%
20		Tampa		2,581	1.3	%	935	93.8	%		0.6	%		0.5	%	0.6	%	(0.3	%)	0.7	%
		Top 20 Markets		117,557	97.3	%	1,364	94.4	%		3.5	%		2.8	%	3.9	%	3.3	%	0.1	%
		All Other Markets		4,823	2.7	%	954	94.5	%		2.8	%		(2.3	%)	6.3	%	2.6	%	0.1	%
		Total		122,380	100.0	%	$ 1,348	94.4	%		3.4	%		2.6	%	3.9	%	3.3	%	0.1	%
(1) Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period.

EQUITY RESIDENTIAL
Third Quarter 2008 vs. Second Quarter 2008
Sequential Same Store Results by Market
											Increase (Decrease) from Prior Quarter
					Q3 2008		Q3 2008	Q3 2008
					% 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	10.8	%	$ 2,795	95.7	%		1.9	%		1.3	%	2.2	%	1.2	%	0.7	%
2		DC Northern Virginia		8,057	8.7	%	1,675	95.9	%		0.9	%		1.1	%	0.8	%	0.9	%	(0.1	%)
3		South Florida		11,761	8.2	%	1,305	93.3	%		(1.0	%)		(1.2	%)	(0.9	%)	(0.2	%)	(0.7	%)
4		Los Angeles		6,863	7.4	%	1,773	94.1	%		0.2	%		7.1	%	(3.1	%)	1.1	%	(0.9	%)
5		Seattle/Tacoma		8,708	7.3	%	1,410	94.8	%		2.8	%		4.7	%	1.8	%	2.9	%	(0.1	%)
6		San Francisco Bay Area		6,364	6.6	%	1,719	95.0	%		2.2	%		1.7	%	2.5	%	3.0	%	(0.7	%)
7		Boston		5,805	6.4	%	1,871	95.8	%		(0.8	%)		(3.1	%)	0.6	%	(0.5	%)	(0.3	%)
8		Phoenix		10,646	5.4	%	921	93.0	%		(1.9	%)		3.4	%	(5.0	%)	(0.8	%)	(1.0	%)
9		Denver		8,059	4.9	%	1,021	94.9	%		2.6	%		7.2	%	0.2	%	2.9	%	(0.3	%)
10		San Diego		4,491	4.6	%	1,659	94.7	%		2.2	%		4.3	%	1.2	%	1.7	%	0.4	%
11		Orlando		7,525	4.2	%	1,032	93.6	%		(0.5	%)		5.8	%	(4.4	%)	(0.3	%)	(0.2	%)
12		Atlanta		7,926	4.1	%	988	94.8	%		(0.1	%)		2.8	%	(2.2	%)	0.3	%	(0.4	%)
13		Inland Empire, CA		4,355	3.5	%	1,380	93.0	%		(0.6	%)		8.8	%	(5.2	%)	1.6	%	(2.0	%)
14		Orange County, CA		3,175	3.3	%	1,628	94.4	%		1.3	%		1.9	%	1.0	%	1.4	%	(0.1	%)
15		New England (excluding Boston)		4,925	2.8	%	1,118	94.4	%		0.2	%		(4.1	%)	4.0	%	1.0	%	(0.8	%)
16		Suburban Maryland		3,977	2.7	%	1,163	94.7	%		0.6	%		0.7	%	0.6	%	1.3	%	(0.6	%)
17		Portland, OR		3,409	1.9	%	987	94.7	%		1.1	%		2.4	%	0.2	%	1.7	%	(0.6	%)
18		Jacksonville		3,711	1.8	%	912	94.0	%		0.2	%		1.2	%	(0.6	%)	(0.2	%)	0.4	%
19		Dallas/Ft. Worth		2,601	1.4	%	1,010	95.8	%		1.8	%		2.2	%	1.5	%	2.0	%	(0.2	%)
20		Tampa		2,854	1.4	%	951	93.9	%		(0.9	%)		9.2	%	(7.9	%)	(0.4	%)	(0.5	%)
		Top 20 Markets		121,458	97.4	%	1,377	94.4	%		0.6	%		2.4	%	(0.3	%)	1.1	%	(0.4	%)
														%
		All Other Markets		4,823	2.6	%	954	94.5	%		0.3	%		1.3	%	(0.3	%)	1.3	%	(1.0	%)
		Total		126,281	100.0	%	$ 1,361	94.4	%		0.6	%		2.3	%	(0.3	%)	1.1	%	(0.5	%)
(1) Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period.

EQUITY RESIDENTIAL
September YTD 2008 vs. September YTD 2007
Same Store Results by Market
											Increase (Decrease) from Prior Year
					Sep YTD 08		Sep YTD 08	Sep YTD 08
					% 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		5,443	10.2	%	$ 2,720	95.5	%		4.7	%		4.5	%	4.8	%	5.2	%	(0.4	%)
2		Los Angeles		6,748	8.1	%	1,746	94.2	%		3.6	%		2.6	%	4.1	%	4.6	%	(0.9	%)
3		Seattle/Tacoma		8,402	7.6	%	1,366	94.6	%		8.6	%		4.3	%	11.1	%	9.0	%	(0.4	%)
4		DC Northern Virginia		6,870	7.4	%	1,542	95.7	%		4.6	%		(0.3	%)	7.1	%	3.6	%	0.9	%
5		South Florida		9,027	7.0	%	1,294	93.8	%		(0.2	%)		1.2	%	(1.2	%)	(0.9	%)	0.6	%
6		Boston		5,649	6.8	%	1,878	95.8	%		3.4	%		3.9	%	3.1	%	2.5	%	0.8	%
7		San Francisco Bay Area		5,793	6.5	%	1,634	95.3	%		7.7	%		0.9	%	11.4	%	8.3	%	(0.5	%)
8		Phoenix		9,350	5.5	%	925	94.2	%		(0.4	%)		1.2	%	(1.4	%)	(0.9	%)	0.5	%
9		Denver		7,309	4.9	%	985	95.0	%		6.7	%		1.8	%	9.3	%	6.9	%	(0.2	%)
10		Atlanta		7,744	4.5	%	980	94.7	%		3.3	%		2.7	%	3.8	%	4.0	%	(0.6	%)
11		Orlando		6,931	4.4	%	1,035	93.6	%		(1.7	%)		1.3	%	(3.6	%)	(1.4	%)	(0.4	%)
12		San Diego		3,822	4.4	%	1,652	94.5	%		3.5	%		2.0	%	4.2	%	3.9	%	(0.4	%)
13		Inland Empire, CA		4,355	4.0	%	1,371	93.6	%		2.0	%		0.3	%	2.9	%	1.9	%	0.1	%
14		Orange County, CA		3,013	3.5	%	1,615	94.2	%		3.3	%		0.2	%	4.7	%	4.8	%	(1.4	%)
15		New England (excluding Boston)		4,925	3.0	%	1,110	94.6	%		1.9	%		3.5	%	0.6	%	2.2	%	(0.3	%)
16		Suburban Maryland		3,687	2.7	%	1,169	94.5	%		9.1	%		0.7	%	14.8	%	6.9	%	1.9	%
17		Portland, OR		3,409	2.1	%	973	94.9	%		4.9	%		1.9	%	6.9	%	5.6	%	(0.6	%)
18		Jacksonville		3,231	1.7	%	903	93.7	%		(2.0	%)		3.0	%	(5.2	%)	(1.0	%)	(1.0	%)
19		Dallas/Ft. Worth		2,601	1.5	%	991	95.8	%		5.1	%		5.5	%	4.8	%	4.4	%	0.6	%
20		Tampa		2,581	1.4	%	938	94.0	%		(0.3	%)		0.4	%	(0.8	%)	(0.2	%)	0.0	%
		Top 20 Markets		110,890	97.2	%	1,347	94.6	%		3.6	%		2.2	%	4.4	%	3.7	%	(0.1	%)
		All Other Markets		4,823	2.8	%	942	94.9	%		3.2	%		(0.4	%)	5.6	%	3.0	%	0.2	%
		Total		115,713	100.0	%	$ 1,330	94.6	%		3.6	%		2.1	%	4.4	%	3.7	%	(0.1	%)
(1) Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period.

EQUITY RESIDENTIAL
Debt Summary as of September 30, 2008
(Amounts in thousands)
												Weighted
										Weighted		Average
										Average		Maturities
						Amounts (1)		% of Total		Rates (1)		(years)
Secured						$ 4,493,886		44.5%		5.19%		8.6
Unsecured						5,607,519		55.5%		5.47%		5.7
Total						$ 10,101,405		100.0%		5.35%		6.9
Fixed Rate Debt:
Secured - Conventional						$ 3,283,251		32.5%		6.01%		7.2
Unsecured - Public/Private						4,845,410		48.0%		5.67%		5.9
Unsecured - Tax Exempt						111,390		1.1%		5.06%		20.6
Fixed Rate Debt						8,240,051		81.6%		5.78%		6.6
Floating Rate Debt:
Secured - Conventional						592,374		5.9%		3.89%		4.3
Secured - Tax Exempt						618,261		6.1%		2.58%		20.7
Unsecured - Public/Private						650,719		6.4%		4.02%		1.7
Unsecured - Revolving Credit Facility						-		-		4.29%		3.4
Floating Rate Debt						1,861,354		18.4%		3.50%		8.5
Total						$ 10,101,405		100.0%		5.35%		6.9

(1) Net of the effect of any derivative instruments. Weighted average rates are for the nine months ended September 30, 2008.

Note: The Company capitalized interest of approximately $45.1 million and $30.8 million during the nine months ended September 30, 2008 and 2007, respectively. The Company capitalized interest of approximately $15.6 million and $12.9 million during the quarters ended September 30, 2008 and 2007, respectively.

	Debt Maturity Schedule as of September 30, 2008
	(Amounts in thousands)
											Weighted		Weighted
											Average Rates		Average Rates
			Fixed Rate		Floating Rate				% of		on Fixed Rate		on Total Debt
	Year		(1)		(1)		Total		Total		Debt (1)		(1)
	2008		$ 6,313		$ 10,200		$ 16,513		0.2%		7.56%		5.65%
	2009		425,874		519,134		945,008		9.3%		6.44%		5.16%
	2010	(2)	290,192		635,409		925,601		9.2%		7.02%		4.60%
	2011	(3)	1,544,508		48,665		1,593,173		15.8%		5.59%		5.63%
	2012		907,930		2,889		910,819		9.0%		6.08%		6.08%
	2013		566,320		-		566,320		5.6%		5.93%		5.93%
	2014		517,462		-		517,462		5.1%		5.28%		5.28%
	2015		355,592		-		355,592		3.5%		6.41%		6.41%
	2016		1,089,314		-		1,089,314		10.8%		5.32%		5.32%
	2017		803,645		456		804,101		8.0%		6.01%		6.01%
	2018	+	1,732,901		644,601		2,377,502		23.5%		5.85%		5.66%
	Total		$ 8,240,051		$ 1,861,354		$ 10,101,405		100.0%		5.84%		5.56%

(1) Net of the effect of any derivative instruments. Weighted average rates are as of September 30, 2008.

(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 $650.0 million 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, 2008
(Amounts in thousands)
										Unamortized
		Coupon			Due		Face			Premium/			Net
		Rate			Date		Amount			(Discount)			Balance
Fixed Rate Notes:
		4.750	%		06/15/09	(1)	$ 271,520			$ (176	)		$ 271,344
		6.950	%		03/02/11		300,000			2,256			302,256
		6.625	%		03/15/12		400,000			(1,015	)		398,985
		5.500	%		10/01/12		350,000			(1,381	)		348,619
		5.200	%		04/01/13		400,000			(533	)		399,467
		5.250	%		09/15/14		500,000			(366	)		499,634
		6.584	%		04/13/15		300,000			(727	)		299,273
		5.125	%		03/15/16		500,000			(399	)		499,601
		5.375	%		08/01/16		400,000			(1,453	)		398,547
		5.750	%		06/15/17		650,000			(4,450	)		645,550
		7.125	%		10/15/17		150,000			(587	)		149,413
		7.570	%		08/15/26		140,000			-			140,000
		3.850	%		08/15/26	(2)	650,000			(7,279	)		642,721
Floating Rate Adjustments						(1)	(150,000	)		-			(150,000	)
							4,861,520			(16,110	)		4,845,410
Fixed Rate Tax Exempt Notes:
		4.750	%		12/15/28	(3)	35,600			-			35,600
		5.200	%		06/15/29	(3)	75,790			-			75,790
							111,390			-			111,390
Floating Rate Notes:
					06/15/09	(1)	150,000			-			150,000
FAS 133 Adjustments - net						(1)	719			-			719
Term Loan Facility		L+0.50%			10/05/10	(3)(4)	500,000			-			500,000
							650,719			-			650,719
Revolving Credit Facility:		L+0.50%			02/28/12	(5)	-			-			-
Total Unsecured Debt							$ 5,623,629			$ (16,110	)		$ 5,607,519

(1) $150.0 million in fair value interest rate swaps converts a portion of the 4.750% notes due June 15, 2009 to a floating interest rate. During the quarter ended September 30, 2008, the Company repurchased $28.5 million of these notes at a discount to par of approximately 0.9% and recognized a gain on early debt extinguishment of $0.3 million.

(2) Convertible notes mature on August 15, 2026. The notes are callable by the Company on or after August 18, 2011. The notes are putable by the holders on August 18, 2011, August 15, 2016 and August 15, 2021.

(3) Notes are private. All other unsecured debt is public.

(4) 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.

(5) As of September 30, 2008, there was no amount outstanding and approximately $1.34 billion available on the Company's unsecured revolving credit facility.

EQUITY RESIDENTIAL
Selected Unsecured Public Debt Covenants
				September 30,			June 30,
				2008			2008
Total Debt to Adjusted Total Assets (not to exceed 60%)				51.2	%		50.9	%
Secured Debt to Adjusted Total Assets (not to exceed 40%)				22.8	%		21.2	%
Consolidated Income Available for Debt Service to
Maximum Annual Service Charges
(must be at least 1.5 to 1)				2.23			2.21
Total Unsecured Assets to Unsecured Debt
(must be at least 150%)				220.4	%		210.1	%

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, 2008
(Amounts in thousands except for share and per share amounts)
	Secured Debt													$ 4,493,886		44.5%
	Unsecured Debt													5,607,519		55.5%
	Total Debt													10,101,405		100.0%		43.6%
	Common Shares									272,022,884		94.1%
	OP Units									17,077,375		5.9%
	Total Shares and OP Units									289,100,259		100.0%
	Common Share Equivalents (see below)									418,153
	Total outstanding at quarter-end									289,518,412
	Common Share Price at September 30, 2008									$ 44.41
														12,857,513		98.5%
	Perpetual Preferred Equity (see below)													200,000		1.5%
	Total Equity													13,057,513		100.0%		56.4%
	Total Market Capitalization													$ 23,158,918				100.0%

Convertible Preferred Equity as of September 30, 2008
(Amounts in thousands except for share/unit and per share/unit amounts)
												Annual		Annual		Weighted				Common
						Redemption		Outstanding		Liquidation		Dividend		Dividend		Average		Conversion		Share
Series						Date		Shares/Units		Value		Per Share/Unit		Amount		Rate		Ratio		Equivalents
	Preferred Shares:
		7.00% Series E				11/1/98		338,616		$ 8,465		$ 1.75		$ 593				1.1128		376,812
		7.00% Series H				6/30/98		23,359		584		1.75		41				1.4480		33,824
	Junior Preference Units:
		8.00% Series B				7/29/09		7,367		184		2.00		15				1.020408		7,517
Total Convertible Preferred Equity								369,342		$ 9,233				$ 649		7.03%				418,153

Perpetual Preferred Equity as of September 30, 2008

(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 Operating Partnership Unit (OP Unit)
Weighted Average Amounts Outstanding
									YTD Q308		YTD Q307		Q308		Q307
Weighted Average Amounts Outstanding for Net Income Purposes:
	Common Shares - basic								269,581,967		282,846,740		270,345,399		272,086,433
	Shares issuable from assumed conversion/vesting of:
			- OP Units						17,840,134		19,139,417		17,398,225		18,890,937
			- share options/restricted shares						2,844,883		4,065,352		3,051,930		3,353,744
	Total Common Shares and OP Units - diluted								290,266,984		306,051,509		290,795,554		294,331,114
Weighted Average Amounts Outstanding for FFO Purposes:
	Common Shares - basic								269,581,967		282,846,740		270,345,399		272,086,433
	OP Units - basic								17,840,134		19,139,417		17,398,225		18,890,937
	Total Common Shares and OP Units - basic								287,422,101		301,986,157		287,743,624		290,977,370
	Shares issuable from assumed conversion/vesting of:
			- convertible preferred shares/units						432,445		505,601		419,822		488,324
			- share options/restricted shares						2,844,883		4,065,352		3,051,930		3,353,744
	Total Common Shares and OP Units - diluted								290,699,429		306,557,110		291,215,376		294,819,438
Period Ending Amounts Outstanding:
	Common Shares - basic								272,022,884
	OP Units - basic								17,077,375
	Total Common Shares and OP Units - basic								289,100,259

EQUITY RESIDENTIAL
Partially Owned Entities as of September 30, 2008
(Amounts in thousands except for project and unit amounts)
					Consolidated																Unconsolidated
					Development Projects
					Held for and/or Under Development			Completed, Not Stabilized (4)			Completed and Stabilized			Other			Total				Institutional Joint Ventures
Total projects			(1	)	-			2			5			21			28				44
Total units			(1	)	-			410			1,405			3,894			5,709				10,446
Operating information for the nine months
	ended 9/30/08 (at 100%):
	Operating revenue				$ 368			$ 1,085			$ 18,021			$ 43,634			$ 63,108				$ 78,375
	Operating expenses				1,202			1,810			8,262			14,669			25,943				35,226
	Net operating (loss) income				(834	)		(725	)		9,759			28,965			37,165				43,149
	Depreciation				278			1,175			7,063			10,995			19,511				16,184
	Other				-			-			1,806			17			1,823				268
	Operating (loss) income				(1,112	)		(1,900	)		890			17,953			15,831				26,697
	Interest and other income				50			11			53			319			433				420
	Interest:
		Expense incurred, net			-			(528	)		(5,722	)		(15,094	)		(21,344	)			(28,085	)
		Amortization of deferred financing costs			-			(50	)		(121	)		(101	)		(272	)			(463	)
	Income and other tax (expense) benefit				(147	)		-			-			(55	)		(202	)			(257	)
	Net (loss) income				$ (1,209	)		$ (2,467	)		$ (4,900	)		$ 3,022			$ (5,554	)			$ (1,688	)
Debt - Secured (2):
		EQR Ownership (3)			$ 467,172			$ 75,867			$ 141,206			$ 288,976			$ 973,221				$ 121,200
		Minority Ownership			-			-			-			13,321			13,321				363,600
Total (at 100%)					$ 467,172			$ 75,867			$ 141,206			$ 302,297			$ 986,542				$ 484,800

(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 $106.0 million in mortgage bonds on various development projects.

(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.

EQUITY RESIDENTIAL
Consolidated Development Projects as of September 30, 2008
(Amounts in thousands except for project and unit amounts)
Projects		Location	No. of Units		Total Capital Cost (1)		Total Book Value To Date		Total Book Value Not Placed in Service		Total Debt		Percentage Completed			Percentage Leased			Percentage Occupied			Estimated Completion Date		Estimated Stabilization Date
Projects Under Development - Wholly Owned:
Mosaic at Metro (5)		Hyattsville, MD	260		$ 61,483		$ 45,181		$ 45,181		$ 33,606		82	%		10	%		-			Q4 2008		Q1 2010
70 Greene (a.k.a. 77 Hudson)		Jersey City, NJ	480		269,958		172,795		172,795		-		69	%		-			-			Q4 2009		Q1 2011
Reserve at Town Center II		Mill Creek, WA	100		24,464		6,945		6,945		-		14	%		-			-			Q2 2010		Q3 2010
Redmond Way		Redmond, WA	250		84,382		20,120		20,120		-		2	%		-			-			Q1 2011		Q1 2012
Projects Under Development - Wholly Owned			1,090		440,287		245,041		245,041		33,606
Projects Under Development - Partially Owned:
Veridian (a.k.a. Silver Spring)		Silver Spring, MD	457		148,705		131,613		131,613		91,705		91	%		10	%		-			Q1 2009		Q3 2010
Third Square (a.k.a. 303 Third Street)		Cambridge, MA	482		254,523		222,674		222,674		135,409		92	%		26	%		20	%		Q1 2009		Q2 2010
Montclair Metro		Montclair, NJ	163		48,730		25,393		25,393		9,740		58	%		-			-			Q3 2009		Q1 2010
Red Road Commons		South Miami, FL	404		128,816		79,741		79,741		24,515		52	%		-			-			Q1 2010		Q3 2011
111 Lawrence Street		Brooklyn, NY	492		283,968		80,592		80,592		-		20	%		-			-			Q2 2010		Q3 2011
Westgate		Pasadena, CA	480		170,558		67,543		67,543		163,160	(2)	18	%		-			-			Q2 2011		Q2 2012
Projects Under Development - Partially Owned			2,478		1,035,300		607,556		607,556		424,529
Projects Under Development			3,568		1,475,587		852,597		852,597		458,135	(3)
Land Held for Development			N/A		-		366,822		366,822		42,643
Land/Projects Held for and/or Under Development			3,568		1,475,587		1,219,419		1,219,419		500,778
Completed Not Stabilized - Wholly Owned (4):
West End Apartments (a.k.a. Emerson/CRP II)		Boston, MA	310		164,981		162,651		-		-					87	%		85	%		Completed		Q1 2009
Highland Glen II		Westwood, MA	102		19,869		19,849		-		-					83	%		81	%		Completed		Q1 2009
Key Isle at Windermere II		Orlando, FL	165		27,955		27,723		-		-					83	%		71	%		Completed		Q1 2009
Crowntree Lakes		Orlando, FL	352		57,376		56,632		-		-					59	%		49	%		Completed		Q4 2009
Reunion at Redmond Ridge		Redmond, WA	321		54,418		52,852		-		-					26	%		22	%		Completed		Q3 2010
Projects Completed Not Stabilized - Wholly Owned			1,250		324,599		319,707		-		-
Completed Not Stabilized - Partially Owned (4):
Alta Pacific		Irvine, CA	132		45,297		45,297		-		28,260					92	%		73	%		Completed		Q1 2009
1401 South State (a.k.a. City Lofts)		Chicago, IL	278		69,952		67,730		-		47,607					51	%		44	%		Completed		Q3 2009
Projects Completed Not Stabilized - Partially Owned			410		115,249		113,027		-		75,867
Projects Completed Not Stabilized			1,660		439,848		432,734		-		75,867
Completed and Stabilized During the Quarter:
Bella Vista III		Woodland Hills, CA	264		73,337		73,215		-		-					93	%		92	%		Completed		Stabilized
Projects Completed and Stabilized During the Quarter			264		73,337		73,215		-		-
Total Projects			5,492		$ 1,988,772		$ 1,725,368		$ 1,219,419		$ 576,645
NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS													Total Capital Cost (1)			Q3 2008 NOI
Projects Under Development													$ 1,475,587			$ (467	)
Completed Not Stabilized													439,848			1,576
Completed and Stabilized During the Quarter													73,337			824
Total Development/ Newly Stabilized NOI Contribution													$ 1,988,772			$ 1,933

(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 $102.9 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 9/30/08.
(3) Of the approximately $623.0 million of capital cost remaining to be funded at 9/30/08 for projects under development, $418.4 million will be funded by fully committed third party bank loans and the remaining $204.6 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) Project was acquired on 6/25/08. The previous owner commenced development in the fourth quarter of 2005.

EQUITY RESIDENTIAL
Consolidated Condominium Conversion Projects as of September 30, 2008
(Amounts in thousands except for project and unit amounts)
									Units								2008 YTD Activity							Q3 2008
													Available for Sale
Projects			Location		Project Start Date (1)		Estimated Close Out Date		Total		Units Closed		Sold Not Closed		Available		Units Closed		Sales Price		FFO Incremental Gain on Sale (2)			Units Closed		Sales Price		FFO Incremental Gain on Sale (2)
For Sale
South Palm Place			Tamarac, FL		Q2 2005		Q4 2008		208		207		-		1		5		$746		$(327	)		-		$-		$(2	)
Park Bloomingdale			Bloomingdale, IL		Q2 2006		Q4 2008		250		220		3		27		40		7,035		56			11		1,926		42
Arrington Place			Issaquah, WA		Q1 2007		Q4 2009		130		67		1		62		22		5,886		389			4		1,132		73
The Cleo (The Alexandria)			Los Angeles, CA		Q3 2007		Q4 2009		104		10		22		72		10		3,088		464			10		3,088		464
									692		504		26		162		77		16,755		582			25		6,146		577
Closed Out/Other
Belle Arts (3)			Bellevue, WA		Q4 2006		N/A		128		127		-		1		-		-		1			-		-		-
Chantecleer Lakes			Naperville, IL		Q4 2005		Q1 2008		304		304		-		-		2		326		(8	)		-		-		(37	)
Pacific Cove			Playa Del Ray, CA		Q3 2006		Q1 2008		80		80		-		-		1		520		(90	)		-		-		(29	)
Milano Terrace			Scottsdale, AZ		Q2 2005		Q2 2008		224		224		-		-		18		4,043		220			-		-		(10	)
Projects closed out prior to 2008 (2)									4,289		4,289		-		-		-		-		(3,348	)		-		-		(54	)
									5,025		5,024		-		1		21		4,889		(3,225	)		-		-		(130	)
Totals							5		5,717		5,528		26		163		98		$21,644		$(2,643	)		25		$6,146		$447
Net incremental (loss) gain on sales of condominium units (2)																					$(2,643	)						$447
Corporate overhead (property management expense)																					(2,061	)						(649	)
Other expenses																					(1,440	)						(1,185	)
Discontinued operating loss of active conversions																					(3,827	)						(1,461	)
Income of halted conversions (4)																					1,137							559
Pre-tax net loss - Condominium division (5)																					$(8,834	)						$(2,289	)

(1)		Project start date represents the date that each respective property was acquired by the taxable REIT subsidiary and included in discontinued operations.
(2)		Amounts are net of $246,000 and $73,000 in reserves for potential homeowners disputes for the nine months and quarter ended September 30, 2008, respectively. The company recorded an additional reserve of $3,197,000 in the second quarter of 2008 on various projects closed out prior to 2008.
(3)		Belle Arts - In order to retain certain development rights, the remaining unit is not available for sale at this time.
(4)		Halted conversions includes the results of Sheridan Lake Club (Dania Beach Club), Sage, The Martine (Crosspointe), The Hamilton and Verde (Mission Verde).
(5)		Excludes interest income, interest expense and certain other items specific to condominium conversion projects that ultimately eliminate in consolidation.
		Also excludes depreciation expense on halted conversions (active conversions are not depreciated) and excludes income and other taxes on condominium sales and operations, if any.

EQUITY RESIDENTIAL
Maintenance Expenses and Capitalized Improvements to Real Estate
For the Nine Months Ended September 30, 2008
(Amounts in thousands except for unit and per unit amounts)
					Maintenance Expenses														Capitalized Improvements to Real Estate														Total Expenditures
		Total						Avg.					Avg.				Avg.					Avg.		Building			Avg.				Avg.				Avg.
		Units			Expense			Per		Payroll			Per				Per		Replacements			Per		Improvements			Per				Per		Grand		Per
		(1)			(2)			Unit		(3)			Unit		Total		Unit		(4)			Unit		(5)			Unit		Total		Unit		Total		Unit
Established Properties (6)		106,135			$ 63,443			$ 598		$ 54,776			$ 516		$ 118,219		$ 1,114		$ 29,759			$ 280		$ 42,088			$ 397		$ 71,847		$ 677	(9)	$ 190,066		$ 1,791
New Acquisition Properties (7)		20,543			11,766			631		9,919			532		21,685		1,163		4,255			228		13,847			743		18,102		971		39,787		2,134
Other (8)		6,471			8,367					6,861					15,228				32,650					8,766					41,416				56,644
Total		133,149			$ 83,576					$ 71,556					$ 155,132				$ 66,664					$ 64,701					$ 131,365				$ 286,497

(1)		Total Units - Excludes 10,446 unconsolidated units and 3,731 military housing (fee managed) units, for which maintenance expenses and capitalized improvements to real estate are self-funded and do not consolidate into the Company's results.
(2)		Maintenance Expenses - Includes general maintenance costs, unit turnover costs including interior painting, regularly scheduled landscaping and tree trimming costs, security, exterminating, fire protection, snow and ice removal, elevator repairs, and other miscellaneous building repair costs.
(3)		Maintenance Payroll - Includes employee costs for maintenance, cleaning, housekeeping, and landscaping.
(4)		Replacements - Includes new expenditures inside the units such as appliances, mechanical equipment, fixtures and flooring, including carpeting.
(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)		Established Properties - Wholly Owned Properties acquired prior to January 1, 2006.
(7)		New Acquisition Properties - Wholly Owned Properties acquired during 2006, 2007 and 2008. Per unit amounts are based on a weighted average of 18,643 units.
(8)		Other - Includes properties either partially owned or sold during the period, commercial space, corporate housing and condominium conversions. Also includes $25.2 million included in replacements spent on various assets related to major renovations and repositioning of these assets.
(9)		For 2008, the Company estimates an annual stabilized run rate of approximately $1,100 per unit of capital expenditures for its established properties.

EQUITY RESIDENTIAL
Discontinued Operations
(Amounts in thousands)
		Nine Months Ended						Quarter Ended
		September 30,						September 30,
		2008			2007			2008			2007
REVENUES
Rental income		$ 39,722			$ 168,232			$ 6,597			$ 39,857
Total revenues		39,722			168,232			6,597			39,857
EXPENSES (1)
Property and maintenance		16,289			58,158			3,908			15,312
Real estate taxes and insurance		5,312			22,208			756			5,252
Property management		(11	)		287			18			23
Depreciation		10,001			45,688			1,605			10,307
General and administrative		24			14			7			4
Impairment		56			-			-			-
Total expenses		31,671			126,355			6,294			30,898
Discontinued operating income		8,051			41,877			303			8,959
Interest and other income		252			185			126			43
Interest (2):
Expense incurred, net		(29	)		(3,725	)		(2	)		(746	)
Amortization of deferred financing costs		-			(1,667	)		-			(5	)
Income and other tax benefit (expense)		1,018			984			359			1,166
Discontinued operations		9,292			37,654			786			9,417
Minority Interests - Operating Partnership		(576	)		(2,387	)		(48	)		(608	)
Discontinued operations, net of minority interests		8,716			35,267			738			8,809
Net gain on sales of discontinued operations		365,052			847,490			150,255			461,987
Minority Interests - Operating Partnership		(22,633	)		(53,731	)		(9,120	)		(29,844	)
Gain on sales of discontinued operations, net of minority interests		342,419			793,759			141,135			432,143
Discontinued operations, net of minority interests		$ 351,135			$ 829,026			$ 141,873			$ 440,952

(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
Additional Reconciliations and Non-Comparable Items
(Amounts in thousands except per share data)
(All per share data is diluted)
FFO Reconciliations
														FFO Reconciliations
														Guidance Midpoint Q3
														2008 to Actual Q3 2008
														Amounts			Per Share
Guidance midpoint Q3 2008 FFO - Diluted (1) (2)														$ 184,714			$ 0.634
General and administrative expense														1,461			0.005
Net gain on sales of land parcels														2,976			0.010
Other														(43	)		-
Actual Q3 2008 FFO - Diluted (1) (2)														$ 189,108			$ 0.649
Non-Comparable Items (3)
		Nine Months Ended September 30,									Quarter Ended September 30,
		2008			2007			Variance			2008			2007			Variance
Reserve adjustments (property insurance, workers compensation and medical)		$ 3,994			$ 1,038			$ 2,956			$ 1,169			$ 1,521			$ (352	)
Severance charges:
Property management expense		(282	)		(477	)		195			(89	)		(360	)		271
General and administrative expense		(2,162	)		(923	)		(1,239	)		-			(923	)		923
Florida litigation reserve reduction (general and administrative expense)		-			1,667			(1,667	)		-			-			-
Impairment (including discontinued operations)		(2,856	)		(1,020	)		(1,836	)		(2,097	)		(626	)		(1,471	)
Insurance/litigation settlement proceeds (interest and other income)		1,725			-			1,725			-			-			-
Debt extinguishment costs (interest):
Prepayment penalties		(41	)		(3,339	)		3,298			(41	)		(298	)		257
Write-off of unamortized deferred financing costs		(169	)		(3,835	)		3,666			(163	)		(7	)		(156	)
Premium on redemption of Preferred Shares		-			(6,144	)		6,144			-			(6,144	)		6,144
Net gain on sales of land parcels		2,976			5,230			(2,254	)		2,976			714			2,262
Net incremental (loss) gain on sales of condominium units		(2,643	)		18,773			(21,416	)		447			5,186			(4,739	)
Income and other tax (expense) benefit - Condo sales		1,089			1,192			(103	)		362			1,185			(823	)
Other		1,113			374			739			895			553			342
Net non-comparable items (3)		$ 2,744			$ 12,536			$ (9,792	)		$ 3,459			$ 801			$ 2,658
Note: See page 26 for definitions, footnotes and reconciliations of EPS to FFO.

EQUITY RESIDENTIAL
The earnings guidance/projections provided below are based on current expectations and are forward-looking.
2008 Earnings Guidance (per share diluted)
		Q4 2008		2008
Expected FFO (1) (2)		$0.60 to $0.65		$2.48 to $2.53
2008 Same Store Assumptions
Physical occupancy				94.5%
Revenue change				3.25%
Expense change				2.25%
NOI change				3.75%
(Note: 25 basis point change in NOI percentage = $0.01 per share change in EPS/FFO)
2008 Transaction Assumptions
Rental acquisitions				$0.4 billion
Rental dispositions				$1.0 billion
Capitalization rate spread				None
2008 Debt Assumptions
Weighted average debt outstanding				$9.8 billion to $10.0 billion
Weighted average interest rate (reduced for capitalized interest and including prepayment penalties)				4.87%
Interest expense				$480.0 million to $490.0 million
Cash and cash equivalents at 12/31/08				$660.0 million
2008 Condominium Conversion Assumptions
Net incremental (loss) gain on sales of condominium units				$(3.2) million to $(2.9) million
Pre-tax net (loss) - Condominium division (after overhead/operations)				$(11.0) million to $(10.0) million
Effective tax rate				0%
Number of condominium unit sales				105 units to 120 units
2008 Other Guidance Assumptions
General and administrative expense				$45.0 million to $46.0 million
Interest and other income (including debt extinguishment gains)				$27.5 million to $28.5 million
Income and other tax expense				$5.0 million to $6.0 million
Net gain on sales of land parcels				$3.0 million
Preferred share redemptions				No amounts budgeted
Weighted average Common Shares and OP Units - Diluted				290.6 million
Note: See page 26 for definitions, footnotes and reconciliations of EPS to FFO.

EQUITY RESIDENTIAL
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
(Amounts in thousands except per share data)
(All per share data is diluted)
					Expected			Expected			Expected
					Q3 2008			Q4 2008			2008
		Amounts			Per Share			Per Share			Per Share
Expected Earnings - Diluted (4)		$ 178,941			$ 0.614			$0.35 to $0.40			$1.97 to $2.02
Add: Expected depreciation expense		145,827			0.501			0.52			2.05
Less: Expected net gain on sales (4)		(140,054	)		(0.481	)		(0.27	)		(1.54	)
Expected FFO - Diluted (1) (2)		$ 184,714			$ 0.634			$0.60 to $0.65			$2.48 to $2.53

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 OP 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 "Minority Interests - Operating Partnership". Subject to certain restrictions, the Minority 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 OP 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 OP 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 OP 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 OP 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 OP 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.