ERP OPERATING LTD PARTNERSHIP 10-Q

10-Q Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-12252 (Equity Residential) Commission File Number: 0-24920 (ERP Operating Limited Partnership) EQUITY RESIDENTIAL ERP OPERATING LIMITED PARTNERSHIP ( Exact name of registrant as specified in its charter) Maryland (Equity Residential) 13-3675988 (Equity Residential) Illinois (ERP Operating Limited Partnership) 36-3894853 (ERP Operating Limited Partnership) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Two North Riverside Plaza , Chicago , Illinois 60606 ( 312 ) 474-1300 (Address of principal executive offices) (Zip Code) (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Shares of Beneficial Interest, $0.01 Par Value (Equity Residential) EQR New York Stock Exchange 7.57% Notes due August 15, 2026 (ERP Operating Limited Partnership) N/A New York Stock Exchange Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Equity Residential Yes ☒ No ☐ ERP Operating Limited Partnership Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Equity Residential Yes ☒ No ☐ ERP Operating Limited Partnership Yes ☒ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Equity Residential: Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ l ERP Operating Limited Partnership: Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☐ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Equity Residential ☐ ERP Operating Limited Partnership ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Equity Residential Yes ☐ No ☒ ERP Operating Limited Partnership Yes ☐ No ☒ The number of EQR Common Shares of Beneficial Interest, $0.01 par value, outstanding on October 28, 2024 was 379,429,476 . Table of Contents EXPLANATORY NOTE This report combines the reports on Form 10-Q for the quarterly period ended September 30, 2024 of Equity Residential and ERP Operating Limited Partnership. Unless stated otherwise or the context otherwise requires, references to “EQR” mean Equity Residential, a Maryland real estate investment trust (“REIT”), and references to “ERPOP” mean ERP Operating Limited Partnership, an Illinois limited partnership. References to the “Company,” “we,” “us” or “our” mean collectively EQR, ERPOP and those entities/subsidiaries owned or controlled by EQR and/or ERPOP. References to the “Operating Partnership” mean collectively ERPOP and those entities/subsidiaries owned or controlled by ERPOP. The following chart illustrates the Company’s and the Operating Partnership’s corporate structure: EQR is the general partner of, and as of September 30, 2024 owned an approximate 97.0% ownership interest in, ERPOP. The remaining 3.0% interest is owned by limited partners. As the sole general partner of ERPOP, EQR has exclusive control of ERPOP’s day-to-day management. Management operates the Company and the Operating Partnership as one business. The management of EQR consists of the same members as the management of ERPOP. The Company is structured as an umbrella partnership REIT (“UPREIT”) and EQR contributes all net proceeds from its various equity offerings to ERPOP. In return for those contributions, EQR receives a number of OP Units (see definition below) in ERPOP equal to the number of Common Shares it has issued in the equity offering. The Company may acquire properties in transactions that include the issuance of OP Units as consideration for the acquired properties. Such transactions may, in certain circumstances, enable the sellers to defer in whole or in part, the recognition of taxable income or gain that might otherwise result from the sales. This is one of the reasons why the Company is structured in the manner shown above. Based on the terms of ERPOP’s partnership agreement, OP Units can be exchanged with Common Shares on a one-for-one basis because the Company maintains a one-for-one relationship between the OP Units of ERPOP issued to EQR and the outstanding Common Shares. The Company believes that combining the reports on Form 10-Q of EQR and ERPOP into this single report provides the following benefits: • enhances investors’ understanding of the Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business; • eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure applies to both the Company and the Operating Partnership; and • creates time and cost efficiencies through the preparation of one combined report instead of two separate reports. Table of Contents The Company believes it is important to understand the few differences between EQR and ERPOP in the context of how EQR and ERPOP operate as a consolidated company. All of the Company’s property ownership, development and related business operations are conducted through the Operating Partnership and EQR has no material assets or liabilities other than its investment in ERPOP. EQR’s primary function is acting as the general partner of ERPOP. EQR also issues equity from time to time, the net proceeds of which it is obligated to contribute to ERPOP. EQR does not have any indebtedness as all debt is incurred by the Operating Partnership. The Operating Partnership holds substantially all of the assets of the Company, including the Company’s ownership interests in its joint ventures. The Operating Partnership conducts the operations of the business and is structured as a partnership with no publicly traded equity. Except for the net proceeds from equity offerings by EQR (which are contributed to the capital of ERPOP in exchange for additional partnership interests in ERPOP (“OP Units”) (on a one-for-one Common Share per OP Unit basis) or additional preference units in ERPOP (on a one-for-one preferred share per preference unit basis)), the Operating Partnership generates all remaining capital required by the Company’s business. These sources include the Operating Partnership’s working capital, net cash provided by operating activities, borrowings under its revolving credit facility and/or commercial paper program, the issuance of secured and unsecured debt and partnership interests, and proceeds received from disposition of certain properties and joint venture interests. Shareholders’ equity, partners’ capital and noncontrolling interests are the main areas of difference between the consolidated financial statements of the Company and those of the Operating Partnership. The limited partners of the Operating Partnership are accounted for as partners’ capital in the Operating Partnership’s financial statements and as noncontrolling interests in the Company’s financial statements. The noncontrolling interests in the Operating Partnership’s financial statements include the interests of unaffiliated partners in various consolidated partnerships. The noncontrolling interests in the Company’s financial statements include the same noncontrolling interests at the Operating Partnership level and limited partner OP Unit holders of the Operating Partnership. The differences between shareholders’ equity and partners’ capital result from differences in the equity issued at the Company and Operating Partnership levels. To help investors understand the differences between the Company and the Operating Partnership, this report provides separate consolidated financial statements for the Company and the Operating Partnership; a single set of consolidated notes to such financial statements that includes separate discussions of each entity’s debt, noncontrolling interests and shareholders’ equity or partners’ capital, as applicable; and a combined Management’s Discussion and Analysis of Financial Condition and Results of Operations section that includes discrete information related to each entity. This report also includes separate Part I, Item 4, Controls and Procedures , sections and separate Exhibits 31 and 32 certifications for each of the Company and the Operating Partnership in order to establish that the requisite certifications have been made and that the Company and the Operating Partnership are compliant with Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and 18 U.S.C. §1350. In order to highlight the differences between the Company and the Operating Partnership, the separate sections in this report for the Company and the Operating Partnership specifically refer to the Company and the Operating Partnership. In the sections that combine disclosure of the Company and the Operating Partnership, this report refers to actions or holdings as being actions or holdings of the Company. Although the Operating Partnership is generally the entity that directly or indirectly enters into contracts and joint ventures and holds assets and debt, reference to the Company is appropriate because the Company is one business and the Company operates that business through the Operating Partnership. As general partner with control of ERPOP, EQR consolidates ERPOP for financial reporting purposes, and EQR essentially has no assets or liabilities other than its investment in ERPOP. Therefore, the assets and liabilities of the Company and the Operating Partnership are the same on their respective financial statements. The separate discussions of the Company and the Operating Partnership in this report should be read in conjunction with each other to understand the results of the Company on a consolidated basis and how management operates the Company. Table of Contents TABLE OF CONTENTS PAGE PART I. Item 1. Financial Statements of Equity Residential: Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 2 Consolidated Statements of Operations and Comprehensive Income for the nine months and quarters ended September 30, 2024 and 2023 3 Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 5 Consolidated Statements of Changes in Equity for the nine months and quarters ended September 30, 2024 and 2023 9 Financial Statements of ERP Operating Limited Partnership : Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 11 Consolidated Statements of Operations and Comprehensive Income for the nine months and quarters ended September 30, 2024 and 2023 12 Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 14 Consolidated Statements of Changes in Capital for the nine months and quarters ended September 30, 2024 and 2023 18 Notes to Consolidated Financial Statements of Equity Residential and ERP Operating Limited Partnership 20 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 38 Item 3. Quantitative and Qualitative Disclosures about Market Risk 48 Item 4. Controls and Procedures 48 PART II. Item 1. Legal Proceedings 49 Item 1A. Risk Factors 49 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49 Item 3. Defaults Upon Senior Securities 49 Item 4. Mine Safety Disclosures 49 Item 5. Other Information 49 Item 6. Exhibits 49 1 Table of Contents EQUITY RESIDENTIAL CONSOLIDATED B ALANCE SHEETS (Amounts in thousands except for share amounts) (Unaudited) September 30, December 31, 2024 2023 ASSETS Land $ 5,675,037 $ 5,581,876 Depreciable property 24,148,043 22,938,426 Projects under development 222,055 78,036 Land held for development 65,113 114,300 Investment in real estate 30,110,248 28,712,638 Accumulated depreciation ( 10,386,783 ) ( 9,810,337 ) Investment in real estate, net 19,723,465 18,902,301 Investments in unconsolidated entities 359,810 282,049 Cash and cash equivalents 28,610 50,743 Restricted deposits 97,949 89,252 Right-of-use assets 458,673 457,266 Other assets 257,314 252,953 Total assets $ 20,925,821 $ 20,034,564 LIABILITIES AND EQUITY Liabilities: Mortgage notes payable, net $ 1,633,414 $ 1,632,902 Notes, net 5,945,670 5,348,417 Line of credit and commercial paper 786,561 409,131 Accounts payable and accrued expenses 165,787 87,377 Accrued interest payable 50,633 65,716 Lease liabilities 306,119 311,640 Other liabilities 294,543 272,596 Security deposits 74,350 69,178 Distributions payable 263,425 259,231 Total liabilities 9,520,502 8,456,188 Commitments and contingencies Redeemable Noncontrolling Interests – Operating Partnership 351,803 289,248 Equity: Shareholders' equity: Preferred Shares of beneficial interest, $ 0.01 par value; 100,000,000 shares authorized; 343,100 shares issued and outstanding as of September 30, 2024 and 745,600 shares issued and outstanding as of December 31, 2023 17,155 37,280 Common Shares of beneficial interest, $ 0.01 par value; 1,000,000,000 shares authorized; 379,354,738 shares issued and outstanding as of September 30, 2024 and 379,291,417 shares issued and outstanding as of December 31, 2023 3,794 3,793 Paid in capital 9,584,539 9,601,866 Retained earnings 1,244,953 1,437,185 Accumulated other comprehensive income (loss) 3,534 5,704 Total shareholders’ equity 10,853,975 11,085,828 Noncontrolling Interests: Operating Partnership 199,206 202,306 Partially Owned Properties 335 994 Total Noncontrolling Interests 199,541 203,300 Total equity 11,053,516 11,289,128 Total liabilities and equity $ 20,925,821 $ 20,034,564 See accompanying notes 2 Table of Contents EQUITY RESIDENTIAL CONSOLIDATED STATEMENTS OF O PERATIONS AND COMPREHENSIVE INCOME (Amounts in thousands except per share data) (Unaudited) Nine Months Ended September 30, Quarter Ended September 30, 2024 2023 2024 2023 REVENUES Rental income $ 2,213,329 $ 2,146,464 $ 748,348 $ 724,067 EXPENSES Property and maintenance 396,349 391,437 135,221 129,087 Real estate taxes and insurance 320,452 312,607 105,954 102,858 Property management 100,381 90,314 31,412 28,169 General and administrative 48,902 49,135 14,551 14,094 Depreciation 688,041 661,921 237,948 224,736 Total expenses 1,554,125 1,505,414 525,086 498,944 Net gain (loss) on sales of real estate properties 227,829 127,034 ( 165 ) 26,912 Interest and other income 26,501 11,296 15,844 7,627 Other expenses ( 59,094 ) ( 20,517 ) ( 13,971 ) ( 4,958 ) Interest: Expense incurred, net ( 205,762 ) ( 200,882 ) ( 72,722 ) ( 68,891 ) Amortization of deferred financing costs ( 5,784 ) ( 7,023 ) ( 1,948 ) ( 3,027 ) Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of land parcels 642,894 550,958 150,300 182,786 Income and other tax (expense) benefit ( 925 ) ( 892 ) ( 290 ) ( 258 ) Income (loss) from investments in unconsolidated entities ( 4,865 ) ( 3,847 ) ( 1,493 ) ( 1,242 ) Net income 637,104 546,219 148,517 181,286 Net (income) loss attributable to Noncontrolling Interests: Operating Partnership ( 17,290 ) ( 17,174 ) ( 4,012 ) ( 5,561 ) Partially Owned Properties ( 3,098 ) ( 5,299 ) ( 1,059 ) ( 3,217 ) Net income attributable to controlling interests 616,716 523,746 143,446 172,508 Preferred distributions ( 1,258 ) ( 2,318 ) ( 356 ) ( 773 ) Premium on redemption of Preferred Shares ( 1,444 ) — — — Net income available to Common Shares $ 614,014 $ 521,428 $ 143,090 $ 171,735 Earnings per share – basic: Net income available to Common Shares $ 1.62 $ 1.38 $ 0.38 $ 0.45 Weighted average Common Shares outstanding 378,718 378,614 378,756 378,853 Earnings per share – diluted: Net income available to Common Shares $ 1.62 $ 1.38 $ 0.38 $ 0.45 Weighted average Common Shares outstanding 390,688 391,135 391,026 391,351 See accompanying notes 3 Table of Contents EQUITY RESIDENTIAL CONSOLIDATED STATEMENTS OF OPERATIO NS AND COMPREHENSIVE INCOME (Continued) (Amounts in thousands except per share data) (Unaudited) Nine Months Ended September 30, Quarter Ended September 30, 2024 2023 2024 2023 Comprehensive income: Net income $ 637,104 $ 546,219 $ 148,517 $ 181,286 Other comprehensive income (loss): Other comprehensive income (loss) – derivative instruments: Unrealized holding gains (losses) arising during the period ( 3,989 ) 4,514 ( 3,989 ) 460 Losses reclassified into earnings from other comprehensive income 1,819 3,132 609 931 Other comprehensive income (loss) ( 2,170 ) 7,646 ( 3,380 ) 1,391 Comprehensive income 634,934 553,865 145,137 182,677 Comprehensive (income) attributable to Noncontrolling Interests ( 20,330 ) ( 22,712 ) ( 4,980 ) ( 8,822 ) Comprehensive income attributable to controlling interests $ 614,604 $ 531,153 $ 140,157 $ 173,855 See accompanying notes 4 Table of Contents EQUITY RESIDENTIAL CONSOLIDATED STATEM ENTS OF CASH FLOWS (Amounts in thousands) (Unaudited) Nine Months Ended September 30, 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 637,104 $ 546,219 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 688,041 661,921 Amortization of deferred financing costs 5,784 7,023 Amortization of discounts and premiums on debt 3,823 2,815 Amortization of deferred settlements on derivative instruments 1,811 3,123 Amortization of right-of-use assets 11,320 9,572 Write-off of pursuit costs 1,905 2,739 (Income) loss from investments in unconsolidated entities 4,865 3,847 Distributions from unconsolidated entities – return on capital 446 436 Net (gain) loss on sales of real estate properties ( 227,829 ) ( 127,034 ) Realized (gain) loss on investment securities 1,316 ( 1,511 ) Unrealized (gain) loss on investment securities ( 19,880 ) ( 4,461 ) Compensation paid with Company Common Shares 26,781 26,948 Changes in assets and liabilities: (Increase) decrease in other assets 5,551 11,887 Increase (decrease) in accounts payable and accrued expenses 71,360 71,334 Increase (decrease) in accrued interest payable ( 15,083 ) ( 18,791 ) Increase (decrease) in lease liabilities ( 3,363 ) ( 1,077 ) Increase (decrease) in other liabilities 20,258 ( 7,024 ) Increase (decrease) in security deposits 5,172 558 Net cash provided by operating activities 1,219,382 1,188,524 CASH FLOWS FROM INVESTING ACTIVITIES: Investment in real estate – acquisitions ( 1,320,592 ) ( 324,497 ) Investment in real estate – development/other ( 90,718 ) ( 60,179 ) Capital expenditures to real estate ( 230,107 ) ( 229,763 ) Non-real estate capital additions ( 1,572 ) ( 1,457 ) Interest capitalized for real estate and unconsolidated entities under development ( 10,697 ) ( 9,579 ) Proceeds from disposition of real estate, net 360,850 191,718 Investments in unconsolidated entities – acquisitions ( 31,286 ) ( 989 ) Investments in unconsolidated entities – development/other ( 48,360 ) ( 34,076 ) Distributions from unconsolidated entities – return of capital 1,409 15 Purchase of investment securities and other investments — ( 2,500 ) Proceeds from sale of investment securities 7,457 2,952 Net cash provided by (used for) investing activities ( 1,363,616 ) ( 468,355 ) See accompanying notes 5 Table of Contents EQUITY RESIDENTIAL CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Amounts in thousands) (Unaudited) Nine Months Ended September 30, 2024 2023 CASH FLOWS FROM FINANCING ACTIVITIES: Debt financing costs $ ( 5,307 ) $ ( 4,106 ) Mortgage notes payable, net: Proceeds — 572,896 Lump sum payoffs — ( 932,598 ) Scheduled principal repayments ( 2,400 ) ( 554 ) Notes, net: Proceeds 597,954 — Line of credit and commercial paper: Line of credit proceeds 198,000 — Line of credit repayments ( 198,000 ) — Commercial paper proceeds 8,610,430 4,393,568 Commercial paper repayments ( 8,233,000 ) ( 4,025,887 ) Proceeds from (payments on) settlement of derivative instruments ( 3,989 ) 25,169 Finance ground lease principal payments ( 2,158 ) ( 1,995 ) Proceeds from Employee Share Purchase Plan (ESPP) 2,830 2,591 Proceeds from exercise of options 17,315 11,474 Common Shares repurchased and retired ( 38,474 ) — Redemption of Preferred Shares ( 20,125 ) — Premium on redemption of Preferred Shares ( 1,444 ) — Other financing activities, net ( 52 ) ( 37 ) Acquisition of Noncontrolling Interests – Partially Owned Properties — ( 3,737 ) Contributions – Noncontrolling Interests – Partially Owned Properties 458 9 Contributions – Noncontrolling Interests – Operating Partnership 2 1 Distributions: Common Shares ( 762,990 ) ( 738,584 ) Preferred Shares ( 2,031 ) ( 2,319 ) Noncontrolling Interests – Operating Partnership ( 23,058 ) ( 22,969 ) Noncontrolling Interests – Partially Owned Properties ( 3,163 ) ( 3,536 ) Net cash provided by (used for) financing activities 130,798 ( 730,614 ) Net increase (decrease) in cash and cash equivalents and restricted deposits ( 13,436 ) ( 10,445 ) Cash and cash equivalents and restricted deposits, beginning of period 139,995 137,172 Cash and cash equivalents and restricted deposits, end of period $ 126,559 $ 126,727 Cash and cash equivalents and restricted deposits, end of period Cash and cash equivalents $ 28,610 $ 39,250 Restricted deposits 97,949 87,477 Total cash and cash equivalents and restricted deposits, end of period $ 126,559 $ 126,727 See accompanying notes 6 Table of Contents EQUITY RESIDENTIAL CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Amounts in thousands) (Unaudited) Nine Months Ended September 30, 2024 2023 SUPPLEMENTAL INFORMATION: Cash paid for interest, net of amounts capitalized $ 197,587 $ 206,080 Net cash paid (received) for income and other taxes $ 1,097 $ 1,035 Real estate acquisitions/dispositions/other: Mortgage loans assumed $ — $ 42,256 Amortization of deferred financing costs: Investment in real estate, net $ — $ ( 211 ) Other assets $ 2,089 $ 2,089 Mortgage notes payable, net $ 786 $ 2,265 Notes, net $ 2,909 $ 2,880 Amortization of discounts and premiums on debt: Mortgage notes payable, net $ 2,126 $ 1,129 Notes, net $ 1,697 $ 1,686 Amortization of deferred settlements on derivative instruments: Other liabilities $ ( 8 ) $ ( 9 ) Accumulated other comprehensive income $ 1,819 $ 3,132 Write-off of pursuit costs: Investment in real estate, net $ 401 $ 421 Investments in unconsolidated entities $ 1,292 $ 1,667 Other assets $ 212 $ 651 (Income) loss from investments in unconsolidated entities: Investments in unconsolidated entities $ 3,927 $ 2,909 Other liabilities $ 938 $ 938 Realized/unrealized (gain) loss on derivative instruments: Other assets $ — $ ( 3,749 ) Other liabilities $ 3,989 $ ( 765 ) Accumulated other comprehensive income $ ( 3,989 ) $ 4,514 Investment in real estate – acquisitions: Investment in real estate, net $ ( 1,307,865 ) $ ( 324,497 ) Right-of-use assets $ ( 12,727 ) $ — Interest capitalized for real estate and unconsolidated entities under development: Investment in real estate, net $ ( 4,308 ) $ ( 3,468 ) Investments in unconsolidated entities $ ( 6,389 ) $ ( 6,111 ) Investments in unconsolidated entities – development/other: Investments in unconsolidated entities $ ( 47,160 ) $ ( 32,667 ) Other liabilities $ ( 1,200 ) $ ( 1,409 ) Debt financing costs: Mortgage notes payable, net $ — $ ( 4,106 ) Notes, net $ ( 5,307 ) $ — Proceeds from (payments on) settlement of derivative instruments: Other assets $ — $ 25,613 Other liabilities $ ( 3,989 ) $ ( 444 ) Right-of-use assets and lease liabilities initial measurement and reclassifications: Right-of-use assets $ — $ ( 7,105 ) Lease liabilities $ — $ 7,105 Non-cash share distribution and other transfers from unconsolidated entities: Investments in unconsolidated entities $ — $ 539 Other assets $ — $ ( 539 ) See accompanying notes 7 Table of Contents EQUITY RESIDENTIAL CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Amounts in thousands) (Unaudited) Nine Months Ended September 30, 2024 2023 Non-cash change in Supplemental Executive Retirement Plan (SERP) balances: Other assets $ ( 1,362 ) $ 33,970 Other liabilities $ 1,959 $ ( 66,048 ) Paid in capital $ ( 597 ) $ 32,078 See accompanying notes 8 Table of Contents EQUITY RESIDENTIAL CONSOLIDATED STATEMENT S OF CHANGES IN EQUITY (Amounts in thousands except per share data) (Unaudited) Nine Months Ended September 30, Quarter Ended September 30, 2024 2023 2024 2023 SHAREHOLDERS’ EQUITY PREFERRED SHARES Balance, beginning of period $ 37,280 $ 37,280 $ 17,155 $ 37,280 Partial redemption of 8.29 % Series K Cumulative Redeemable ( 20,125 ) — — — Balance, end of period $ 17,155 $ 37,280 $ 17,155 $ 37,280 COMMON SHARES, $ 0.01 PAR VALUE Balance, beginning of period $ 3,793 $ 3,784 $ 3,791 $ 3,790 Conversion of OP Units into Common Shares 2 9 1 7 Exercise of share options 3 2 2 — Employee Share Purchase Plan (ESPP) 1 — — — Common Shares repurchased and retired ( 7 ) — — — Share-based employee compensation expense: Restricted shares 2 2 — — Balance, end of period $ 3,794 $ 3,797 $ 3,794 $ 3,797 PAID IN CAPITAL Balance, beginning of period $ 9,601,866 $ 9,476,085 $ 9,590,105 $ 9,472,628 Common Share Issuance: Conversion of OP Units into Common Shares 8,232 13,907 3,185 9,250 Exercise of share options 17,312 11,472 10,833 116 Employee Share Purchase Plan (ESPP) 2,829 2,591 381 467 Share-based employee compensation expense: Restricted shares 11,753 10,292 2,372 2,349 Share options 2,973 3,904 466 779 ESPP discount 589 481 88 83 Supplemental Executive Retirement Plan (SERP) ( 597 ) 32,078 1 31,930 Acquisition of Noncontrolling Interests – Partially Owned Properties — ( 900 ) — — Change in market value of Redeemable Noncontrolling Interests – Operating Partnership ( 64,541 ) 18,613 ( 25,483 ) 57,736 Adjustment for Noncontrolling Interests ownership in Operating Partnership 4,123 20,534 2,591 13,719 Balance, end of period $ 9,584,539 $ 9,589,057 $ 9,584,539 $ 9,589,057 RETAINED EARNINGS Balance, beginning of period $ 1,437,185 $ 1,658,837 $ 1,357,922 $ 1,506,460 Net income attributable to controlling interests 616,716 523,746 143,446 172,508 Common Share distributions ( 767,779 ) ( 753,633 ) ( 256,059 ) ( 251,563 ) Preferred Share distributions ( 1,258 ) ( 2,318 ) ( 356 ) ( 773 ) Premium on redemption of Preferred Shares – cash charge ( 1,444 ) — — — Common Shares repurchased and retired ( 38,467 ) — — — Balance, end of period $ 1,244,953 $ 1,426,632 $ 1,244,953 $ 1,426,632 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Balance, beginning of period $ 5,704 $ ( 2,547 ) $ 6,914 $ 3,708 Accumulated other comprehensive income (loss) – derivative instruments: Unrealized holding gains (losses) arising during the period ( 3,989 ) 4,514 ( 3,989 ) 460 Losses reclassified into earnings from other comprehensive income 1,819 3,132 609 931 Balance, end of period $ 3,534 $ 5,099 $ 3,534 $ 5,099 DISTRIBUTIONS Distributions declared per Common Share outstanding $ 2.025 $ 1.9875 $ 0.675 $ 0.6625 See accompanying notes 9 Table of Contents EQUITY RESIDENTIAL CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Continued) (Amounts in thousands except per share data) (Unaudited) Nine Months Ended September 30, Quarter Ended September 30, 2024 2023 2024 2023 NONCONTROLLING INTERESTS OPERATING PARTNERSHIP Balance, beginning of period $ 202,306 $ 209,961 $ 204,032 $ 207,405 Issuance of restricted units to Noncontrolling Interests 2 1 — — Conversion of OP Units held by Noncontrolling Interests into OP Units held by General Partner ( 8,234 ) ( 13,916 ) ( 3,186 ) ( 9,257 ) Equity compensation associated with Noncontrolling Interests 13,215 14,205 2,979 3,338 Net income attributable to Noncontrolling Interests 17,290 17,174 4,012 5,561 Distributions to Noncontrolling Interests ( 23,236 ) ( 22,924 ) ( 7,361 ) ( 7,284 ) Change in carrying value of Redeemable Noncontrolling Interests – Operating Partnership 1,986 21,878 1,321 19,801 Adjustment for Noncontrolling Interests ownership in Operating Partnership ( 4,123 ) ( 20,534 ) ( 2,591 ) ( 13,719 ) Balance, end of period $ 199,206 $ 205,845 $ 199,206 $ 205,845 PARTIALLY OWNED PROPERTIES Balance, beginning of period $ 994 $ ( 721 ) $ ( 295 ) $ ( 4,728 ) Net income attributable to Noncontrolling Interests 3,098 5,299 1,059 3,217 Contributions by Noncontrolling Interests 458 9 — — Distributions to Noncontrolling Interests ( 3,215 ) ( 3,573 ) ( 429 ) ( 312 ) Acquisition of Noncontrolling Interests – Partially Owned Properties — ( 2,837 ) — — Other ( 1,000 ) — — — Balance, end of period $ 335 $ ( 1,823 ) $ 335 $ ( 1,823 ) See accompanying notes 10 Table of Contents ERP OPERATING LI MITED PARTNERSHIP CONSOLIDATED B ALANCE SHEETS (Amounts in thousands) (Unaudited) September 30, December 31, 2024 2023 ASSETS Land $ 5,675,037 $ 5,581,876 Depreciable property 24,148,043 22,938,426 Projects under development 222,055 78,036 Land held for development 65,113 114,300 Investment in real estate 30,110,248 28,712,638 Accumulated depreciation ( 10,386,783 ) ( 9,810,337 ) Investment in real estate, net 19,723,465 18,902,301 Investments in unconsolidated entities 359,810 282,049 Cash and cash equivalents 28,610 50,743 Restricted deposits 97,949 89,252 Right-of-use assets 458,673 457,266 Other assets 257,314 252,953 Total assets $ 20,925,821 $ 20,034,564 LIABILITIES AND CAPITAL Liabilities: Mortgage notes payable, net $ 1,633,414 $ 1,632,902 Notes, net 5,945,670 5,348,417 Line of credit and commercial paper 786,561 409,131 Accounts payable and accrued expenses 165,787 87,377 Accrued interest payable 50,633 65,716 Lease liabilities 306,119 311,640 Other liabilities 294,543 272,596 Security deposits 74,350 69,178 Distributions payable 263,425 259,231 Total liabilities 9,520,502 8,456,188 Commitments and contingencies Redeemable Limited Partners 351,803 289,248 Capital: Partners’ Capital: Preference Units 17,155 37,280 General Partner 10,833,286 11,042,844 Limited Partners 199,206 202,306 Accumulated other comprehensive income (loss) 3,534 5,704 Total partners’ capital 11,053,181 11,288,134 Noncontrolling Interests – Partially Owned Properties 335 994 Total capital 11,053,516 11,289,128 Total liabilities and capital $ 20,925,821 $ 20,034,564 See accompanying notes 11 Table of Contents ERP OPERATING LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF OPERA TIONS AND COMPREHENSIVE INCOME (Amounts in thousands except per Unit data) (Unaudited) Nine Months Ended September 30, Quarter Ended September 30, 2024 2023 2024 2023 REVENUES Rental income $ 2,213,329 $ 2,146,464 $ 748,348 $ 724,067 EXPENSES Property and maintenance 396,349 391,437 135,221 129,087 Real estate taxes and insurance 320,452 312,607 105,954 102,858 Property management 100,381 90,314 31,412 28,169 General and administrative 48,902 49,135 14,551 14,094 Depreciation 688,041 661,921 237,948 224,736 Total expenses 1,554,125 1,505,414 525,086 498,944 Net gain (loss) on sales of real estate properties 227,829 127,034 ( 165 ) 26,912 Interest and other income 26,501 11,296 15,844 7,627 Other expenses ( 59,094 ) ( 20,517 ) ( 13,971 ) ( 4,958 ) Interest: Expense incurred, net ( 205,762 ) ( 200,882 ) ( 72,722 ) ( 68,891 ) Amortization of deferred financing costs ( 5,784 ) ( 7,023 ) ( 1,948 ) ( 3,027 ) Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of land parcels 642,894 550,958 150,300 182,786 Income and other tax (expense) benefit ( 925 ) ( 892 ) ( 290 ) ( 258 ) Income (loss) from investments in unconsolidated entities ( 4,865 ) ( 3,847 ) ( 1,493 ) ( 1,242 ) Net income 637,104 546,219 148,517 181,286 Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties ( 3,098 ) ( 5,299 ) ( 1,059 ) ( 3,217 ) Net income attributable to controlling interests $ 634,006 $ 540,920 $ 147,458 $ 178,069 ALLOCATION OF NET INCOME: Preference Units $ 1,258 $ 2,318 $ 356 $ 773 Premium on redemption of Preference Units $ 1,444 $ — $ — $ — General Partner $ 614,014 $ 521,428 $ 143,090 $ 171,735 Limited Partners 17,290 17,174 4,012 5,561 Net income available to Units $ 631,304 $ 538,602 $ 147,102 $ 177,296 Earnings per Unit – basic: Net income available to Units $ 1.62 $ 1.38 $ 0.38 $ 0.45 Weighted average Units outstanding 389,379 389,991 389,379 390,087 Earnings per Unit – diluted: Net income available to Units $ 1.62 $ 1.38 $ 0.38 $ 0.45 Weighted average Units outstanding 390,688 391,135 391,026 391,351 See accompanying notes 12 Table of Contents ERP OPERATING LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF OPERATIO NS AND COMPREHENSIVE INCOME (Continued) (Amounts in thousands except per Unit data) (Unaudited) Nine Months Ended September 30, Quarter Ended September 30, 2024 2023 2024 2023 Comprehensive income: Net income $ 637,104 $ 546,219 $ 148,517 $ 181,286 Other comprehensive income (loss): Other comprehensive income (loss) – derivative instruments: Unrealized holding gains (losses) arising during the period ( 3,989 ) 4,514 ( 3,989 ) 460 Losses reclassified into earnings from other comprehensive income 1,819 3,132 609 931 Other comprehensive income (loss) ( 2,170 ) 7,646 ( 3,380 ) 1,391 Comprehensive income 634,934 553,865 145,137 182,677 Comprehensive (income) attributable to Noncontrolling Interests – Partially Owned Properties ( 3,098 ) ( 5,299 ) ( 1,059 ) ( 3,217 ) Comprehensive income attributable to controlling interests $ 631,836 $ 548,566 $ 144,078 $ 179,460 See accompanying notes 13 Table of Contents ERP OPERATING LIMITED PARTNERSHIP CONSOLIDATED STA TEMENTS OF CASH FLOWS (Amounts in thousands) (Unaudited) Nine Months Ended September 30, 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 637,104 $ 546,219 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 688,041 661,921 Amortization of deferred financing costs 5,784 7,023 Amortization of discounts and premiums on debt 3,823 2,815 Amortization of deferred settlements on derivative instruments 1,811 3,123 Amortization of right-of-use assets 11,320 9,572 Write-off of pursuit costs 1,905 2,739 (Income) loss from investments in unconsolidated entities 4,865 3,847 Distributions from unconsolidated entities – return on capital 446 436 Net (gain) loss on sales of real estate properties ( 227,829 ) ( 127,034 ) Realized (gain) loss on investment securities 1,316 ( 1,511 ) Unrealized (gain) loss on investment securities ( 19,880 ) ( 4,461 ) Compensation paid with Company Common Shares 26,781 26,948 Changes in assets and liabilities: (Increase) decrease in other assets 5,551 11,887 Increase (decrease) in accounts payable and accrued expenses 71,360 71,334 Increase (decrease) in accrued interest payable ( 15,083 ) ( 18,791 ) Increase (decrease) in lease liabilities ( 3,363 ) ( 1,077 ) Increase (decrease) in other liabilities 20,258 ( 7,024 ) Increase (decrease) in security deposits 5,172 558 Net cash provided by operating activities 1,219,382 1,188,524 CASH FLOWS FROM INVESTING ACTIVITIES: Investment in real estate – acquisitions ( 1,320,592 ) ( 324,497 ) Investment in real estate – development/other ( 90,718 ) ( 60,179 ) Capital expenditures to real estate ( 230,107 ) ( 229,763 ) Non-real estate capital additions ( 1,572 ) ( 1,457 ) Interest capitalized for real estate and unconsolidated entities under development ( 10,697 ) ( 9,579 ) Proceeds from disposition of real estate, net 360,850 191,718 Investments in unconsolidated entities – acquisitions ( 31,286 ) ( 989 ) Investments in unconsolidated entities – development/other ( 48,360 ) ( 34,076 ) Distributions from unconsolidated entities – return of capital 1,409 15 Purchase of investment securities and other investments — ( 2,500 ) Proceeds from sale of investment securities 7,457 2,952 Net cash provided by (used for) investing activities ( 1,363,616 ) ( 468,355 ) See accompanying notes 14 Table of Contents ERP OPERATING LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Amounts in thousands) (Unaudited) Nine Months Ended September 30, 2024 2023 CASH FLOWS FROM FINANCING ACTIVITIES: Debt financing costs $ ( 5,307 ) $ ( 4,106 ) Mortgage notes payable, net: Proceeds — 572,896 Lump sum payoffs — ( 932,598 ) Scheduled principal repayments ( 2,400 ) ( 554 ) Notes, net: Proceeds 597,954 — Line of credit and commercial paper: Line of credit proceeds 198,000 — Line of credit repayments ( 198,000 ) — Commercial paper proceeds 8,610,430 4,393,568 Commercial paper repayments ( 8,233,000 ) ( 4,025,887 ) Proceeds from (payments on) settlement of derivative instruments ( 3,989 ) 25,169 Finance ground lease principal payments ( 2,158 ) ( 1,995 ) Proceeds from EQR’s Employee Share Purchase Plan (ESPP) 2,830 2,591 Proceeds from exercise of EQR options 17,315 11,474 OP Units repurchased and retired ( 38,474 ) — Redemption of Preference Units ( 20,125 ) — Premium on redemption of Preference Units ( 1,444 ) — Other financing activities, net ( 52 ) ( 37 ) Acquisition of Noncontrolling Interests – Partially Owned Properties — ( 3,737 ) Contributions – Noncontrolling Interests – Partially Owned Properties 458 9 Contributions – Limited Partners 2 1 Distributions: OP Units – General Partner ( 762,990 ) ( 738,584 ) Preference Units ( 2,031 ) ( 2,319 ) OP Units – Limited Partners ( 23,058 ) ( 22,969 ) Noncontrolling Interests – Partially Owned Properties ( 3,163 ) ( 3,536 ) Net cash provided by (used for) financing activities 130,798 ( 730,614 ) Net increase (decrease) in cash and cash equivalents and restricted deposits ( 13,436 ) ( 10,445 ) Cash and cash equivalents and restricted deposits, beginning of period 139,995 137,172 Cash and cash equivalents and restricted deposits, end of period $ 126,559 $ 126,727 Cash and cash equivalents and restricted deposits, end of period Cash and cash equivalents $ 28,610 $ 39,250 Restricted deposits 97,949 87,477 Total cash and cash equivalents and restricted deposits, end of period $ 126,559 $ 126,727 See accompanying notes 15 Table of Contents ERP OPERATING LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Amounts in thousands) (Unaudited) Nine Months Ended September 30, 2024 2023 SUPPLEMENTAL INFORMATION: Cash paid for interest, net of amounts capitalized $ 197,587 $ 206,080 Net cash paid (received) for income and other taxes $ 1,097 $ 1,035 Real estate acquisitions/dispositions/other: Mortgage loans assumed $ — $ 42,256 Amortization of deferred financing costs: Investment in real estate, net $ — $ ( 211 ) Other assets $ 2,089 $ 2,089 Mortgage notes payable, net $ 786 $ 2,265 Notes, net $ 2,909 $ 2,880 Amortization of discounts and premiums on debt: Mortgage notes payable, net $ 2,126 $ 1,129 Notes, net $ 1,697 $ 1,686 Amortization of deferred settlements on derivative instruments: Other liabilities $ ( 8 ) $ ( 9 ) Accumulated other comprehensive income $ 1,819 $ 3,132 Write-off of pursuit costs: Investment in real estate, net $ 401 $ 421 Investments in unconsolidated entities $ 1,292 $ 1,667 Other assets $ 212 $ 651 (Income) loss from investments in unconsolidated entities: Investments in unconsolidated entities $ 3,927 $ 2,909 Other liabilities $ 938 $ 938 Realized/unrealized (gain) loss on derivative instruments: Other assets $ — $ ( 3,749 ) Other liabilities $ 3,989 $ ( 765 ) Accumulated other comprehensive income $ ( 3,989 ) $ 4,514 Investment in real estate – acquisitions: Investment in real estate, net $ ( 1,307,865 ) $ ( 324,497 ) Right-of-use assets $ ( 12,727 ) $ — Interest capitalized for real estate and unconsolidated entities under development: Investment in real estate, net $ ( 4,308 ) $ ( 3,468 ) Investments in unconsolidated entities $ ( 6,389 ) $ ( 6,111 ) Investments in unconsolidated entities – development/other: Investments in unconsolidated entities $ ( 47,160 ) $ ( 32,667 ) Other liabilities $ ( 1,200 ) $ ( 1,409 ) Debt financing costs: Mortgage notes payable, net $ — $ ( 4,106 ) Notes, net $ ( 5,307 ) $ — Proceeds from (payments on) settlement of derivative instruments: Other assets $ — $ 25,613 Other liabilities $ ( 3,989 ) $ ( 444 ) Right-of-use assets and lease liabilities initial measurement and reclassifications: Right-of-use assets $ — $ ( 7,105 ) Lease liabilities $ — $ 7,105 Non-cash share distribution and other transfers from unconsolidated entities: Investments in unconsolidated entities $ — $ 539 Other assets $ — $ ( 539 ) See accompanying notes 16 Table of Contents ERP OPERATING LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Amounts in thousands) (Unaudited) Nine Months Ended September 30, 2024 2023 Non-cash change in Supplemental Executive Retirement Plan (SERP) balances: Other assets $ ( 1,362 ) $ 33,970 Other liabilities $ 1,959 $ ( 66,048 ) Paid in capital $ ( 597 ) $ 32,078 See accompanying notes 17 Table of Contents ERP OPERATING LIMITED PARTNERSHIP CONSOLIDATED STATEMENT S OF CHANGES IN CAPITAL (Amounts in thousands except per Unit data) (Unaudited) Nine Months Ended September 30, Quarter Ended September 30, 2024 2023 2024 2023 PARTNERS’ CAPITAL PREFERENCE UNITS Balance, beginning of period $ 37,280 $ 37,280 $ 17,155 $ 37,280 Partial redemption of 8.29 % Series K Cumulative Redeemable ( 20,125 ) — — — Balance, end of period $ 17,155 $ 37,280 $ 17,155 $ 37,280 GENERAL PARTNER Balance, beginning of period $ 11,042,844 $ 11,138,706 $ 10,951,818 $ 10,982,878 OP Unit Issuance: Conversion of OP Units held by Limited Partners into OP Units held by General Partner 8,234 13,916 3,186 9,257 Exercise of EQR share options 17,315 11,474 10,835 116 EQR’s Employee Share Purchase Plan (ESPP) 2,830 2,591 381 467 Share-based employee compensation expense: EQR restricted shares 11,755 10,294 2,372 2,349 EQR share options 2,973 3,904 466 779 EQR ESPP discount 589 481 88 83 OP Units repurchased and retired ( 38,474 ) — — — Net income available to Units – General Partner 614,014 521,428 143,090 171,735 OP Units – General Partner distributions ( 767,779 ) ( 753,633 ) ( 256,059 ) ( 251,563 ) Supplemental Executive Retirement Plan (SERP) ( 597 ) 32,078 1 31,930 Acquisition of Noncontrolling Interests – Partially Owned Properties — ( 900 ) — — Change in market value of Redeemable Limited Partners ( 64,541 ) 18,613 ( 25,483 ) 57,736 Adjustment for Limited Partners ownership in Operating Partnership 4,123 20,534 2,591 13,719 Balance, end of period $ 10,833,286 $ 11,019,486 $ 10,833,286 $ 11,019,486 LIMITED PARTNERS Balance, beginning of period $ 202,306 $ 209,961 $ 204,032 $ 207,405 Issuance of restricted units to Limited Partners 2 1 — — Conversion of OP Units held by Limited Partners into OP Units held by General Partner ( 8,234 ) ( 13,916 ) ( 3,186 ) ( 9,257 ) Equity compensation associated with Units – Limited Partners 13,215 14,205 2,979 3,338 Net income available to Units – Limited Partners 17,290 17,174 4,012 5,561 Units – Limited Partners distributions ( 23,236 ) ( 22,924 ) ( 7,361 ) ( 7,284 ) Change in carrying value of Redeemable Limited Partners 1,986 21,878 1,321 19,801 Adjustment for Limited Partners ownership in Operating Partnership ( 4,123 ) ( 20,534 ) ( 2,591 ) ( 13,719 ) Balance, end of period $ 199,206 $ 205,845 $ 199,206 $ 205,845 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Balance, beginning of period $ 5,704 $ ( 2,547 ) $ 6,914 $ 3,708 Accumulated other comprehensive income (loss) – derivative instruments: Unrealized holding gains (losses) arising during the period ( 3,989 ) 4,514 ( 3,989 ) 460 Losses reclassified into earnings from other comprehensive income 1,819 3,132 609 931 Balance, end of period $ 3,534 $ 5,099 $ 3,534 $ 5,099 DISTRIBUTIONS Distributions declared per Unit outstanding $ 2.025 $ 1.9875 $ 0.675 $ 0.6625 See accompanying notes 18 Table of Contents ERP OPERATING LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL (Continued) (Amounts in thousands except per Unit data) (Unaudited) Nine Months Ended September 30, Quarter Ended September 30, 2024 2023 2024 2023 NONCONTROLLING INTERESTS NONCONTROLLING INTERESTS – PARTIALLY OWNED PROPERTIES Balance, beginning of period $ 994 $ ( 721 ) $ ( 295 ) $ ( 4,728 ) Net income attributable to Noncontrolling Interests 3,098 5,299 1,059 3,217 Contributions by Noncontrolling Interests 458 9 — — Distributions to Noncontrolling Interests ( 3,215 ) ( 3,573 ) ( 429 ) ( 312 ) Acquisition of Noncontrolling Interests – Partially Owned Properties — ( 2,837 ) — — Other ( 1,000 ) — — — Balance, end of period $ 335 $ ( 1,823 ) $ 335 $ ( 1,823 ) See accompanying notes 19 Table of Contents EQUITY RESIDENTIAL ERP OPERATING LIMITED PARTNERSHIP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Business Equity Residential (“EQR”) is an S&P 500 company focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters, a business that is conducted on its behalf by ERP Operating Limited Partnership (“ERPOP”). EQR is a Maryland real estate investment trust (“REIT”) formed in March 1993 and ERPOP is an Illinois limited partnership formed in May 1993. References to the “Company,” “we,” “us” or “our” mean collectively EQR, ERPOP and those entities/subsidiaries owned or controlled by EQR and/or ERPOP. References to the “Operating Partnership” mean collectively ERPOP and those entities/subsidiaries owned or controlled by ERPOP. Unless otherwise indicated, the notes to consolidated financial statements apply to both the Company and the Operating Partnership. EQR is the general partner of, and as of September 30, 2024 owned an approximate 97.0 % ownership interest in, ERPOP. All of the Company’s property ownership, development and related business operations are conducted through the Operating Partnership and EQR has no material assets or liabilities other than its investment in ERPOP. EQR issues equity from time to time, the net proceeds of which it is obligated to contribute to ERPOP, but does not have any indebtedness as all debt is incurred by the Operating Partnership. The Operating Partnership holds substantially all of the assets of the Company, including the Company’s ownership interests in its joint ventures. The Operating Partnership conducts the operations of the business and is structured as a partnership with no publicly traded equity. As of September 30, 2024, the Company, directly or indirectly through investments in title holding entities, owned all or a portion of 312 properties located in 10 states and the District of Columbia consisting of 84,018 apartment units . The ownership breakdown includes (table does not include any uncompleted development properties): Properties Apartment Units Wholly Owned Properties 297 80,749 Partially Owned Properties – Consolidated 14 3,060 Partially Owned Properties – Unconsolidated 1 209 312 84,018 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) and certain reclassifications considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. In preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The balance sheets at December 31, 2023 have been derived from the audited financial statements at that date but do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. For further information, including definitions of capitalized terms not defined herein, refer to the consolidated financial statements and footnotes thereto included in the Company’s and the Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2023 . 20 Table of Contents Income and Other Taxes EQR has elected to be taxed as a REIT. This, along with the nature of the operations of its operating properties, resulted in no provision for federal income taxes at the EQR level. In addition, ERPOP generally is not liable for federal income taxes as the partners recognize their allocable share of income or loss in their tax returns; therefore no provision for federal income taxes has been made at the ERPOP level. Historically, the Company has generally only incurred certain state and local income, excise and franchise taxes. The Company has elected taxable REIT subsidiary (“TRS”) status for certain of its corporate subsidiaries and, as a result, these entities will incur both federal and state income taxes on any taxable income of such entities after consideration of any net operating losses. Recent Accounting Pronouncements In March 2024, the Securities and Exchange Commission ("SEC") adopted final rules that will require certain climate-related information in registration statements and annual reports. In April 2024, the SEC voluntarily stayed the new rules as a result of pending legal challenges. The new rules include a requirement to disclose material climate-related risks, descriptions of board and management oversight and risk management activities, the material impacts of these risks on a registrant’s strategy, business model and outlook, and any material climate-related targets or goals, as well as material effects and costs of severe weather events and other natural conditions and greenhouse gas emissions. Prior to the stay of the new rules, they would have been effective for annual periods beginning January 1, 2025, except for the greenhouse gas emissions disclosures, which would have been effective for annual periods beginning January 1, 2026. The Company is currently evaluating the impact of the new rules on its disclosures. In December 2023, the Financial Accounting Standards Board (“FASB”) issued an amendment to the income tax standards which requires disclosure enhancements and further transparency to certain income tax disclosures, most notably the tax rate reconciliation and income taxes paid. The new standard will be effective for annual periods beginning January 1, 2025 and will be applied on a prospective basis with the option to apply the standard retrospectively. The Company is currently evaluating the impact of adopting the standard on its consolidated results of operations and financial position. In November 2023, the FASB issued an amendment to the segment reporting standards which requires disclosure for each reportable segment, on an interim and annual basis, of the significant expense categories and amounts that are regularly provided to the chief operating decision maker and included in each reported measure of a segment’s profit or loss. Additionally, it requires disclosure of the title and position of the individual or the name of the group or committee identified as the chief operating decision maker. The new standard will be effective for annual periods beginning January 1, 2024 and interim periods beginning January 1, 2025 on a retrospective basis. The Company is currently evaluating the impact of adopting the standard on its segment disclosures. In March 2020, the FASB issued an amendment to the reference rate reform standard which provides the option for a limited period of time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on contract modifications and hedge accounting. The new standard was effective for the Company upon issuance and elections could be made through December 31, 2024. The Company elected to apply the hedge accounting expedients and application of these expedients preserves the presentation of derivatives consistent with past presentation. 3. Equity, Capital and Other Interests The Company refers to “Common Shares” and “Units” (which refer to both OP Units and restricted units) as equity securities for EQR and “General Partner Units” and “Limited Partner Units” as equity securities for ERPOP. To provide a streamlined and more readable presentation of the disclosures for the Company and the Operating Partnership, several sections below refer to the respective terminology for each with the same financial information and separate sections are provided, where needed, to further distinguish any differences in financial information and terminology. 21 Table of Contents The following table presents the changes in the Company’s issued and outstanding Common Shares and Units for the nine months ended September 30, 2024 and 2023: 2024 2023 Common Shares Common Shares outstanding at January 1, 379,291,417 378,429,708 Common Shares Issued: Conversion of OP Units 191,019 862,596 Exercise of share options 284,021 234,395 Employee Share Purchase Plan (ESPP) 54,061 48,835 Restricted share grants, net 186,672 148,304 Common Shares Other: Repurchased and retired ( 652,452 ) — Common Shares outstanding at September 30, 379,354,738 379,723,838 Units Units outstanding at January 1, 11,581,306 12,429,737 Restricted unit grants, net 172,667 166,344 Conversion of OP Units to Common Shares ( 191,019 ) ( 862,596 ) Units outstanding at September 30, 11,562,954 11,733,485 Total Common Shares and Units outstanding at September 30, 390,917,692 391,457,323 Units Ownership Interest in Operating Partnership 3.0 % 3.0 % The following table presents the changes in the Operating Partnership’s issued and outstanding General Partner Units and Limited Partner Units for the nine months ended September 30, 2024 and 2023: 2024 2023 General and Limited Partner Units General and Limited Partner Units outstanding at January 1, 390,872,723 390,859,445 Issued to General Partner: Exercise of EQR share options 284,021 234,395 EQR’s Employee Share Purchase Plan (ESPP) 54,061 48,835 EQR’s restricted share grants, net 186,672 148,304 Issued to Limited Partners: Restricted unit grants, net 172,667 166,344 General Partner Other: OP Units repurchased and retired ( 652,452 ) — General and Limited Partner Units outstanding at September 30, 390,917,692 391,457,323 Limited Partner Units Limited Partner Units outstanding at January 1, 11,581,306 12,429,737 Limited Partner restricted unit grants, net 172,667 166,344 Conversion of Limited Partner OP Units to EQR Common Shares ( 191,019 ) ( 862,596 ) Limited Partner Units outstanding at September 30, 11,562,954 11,733,485 Limited Partner Units Ownership Interest in Operating Partnership 3.0 % 3.0 % The equity positions of various individuals and entities that contributed their properties to the Operating Partnership in exchange for OP Units, as well as the equity positions of the holders of restricted units, are collectively referred to as the “Noncontrolling Interests – Operating Partnership” and “Limited Partners Capital,” respectively, for the Company and the Operating Partnership. Subject to certain exceptions (including the “book-up” requirements of restricted units), the Noncontrolling Interests – Operating Partnership/Limited Partners Capital may exchange their Units with EQR for Common Shares on a one-for-one basis. The carrying value of the Noncontrolling Interests – Operating Partnership/Limited Partners Capital (including redeemable interests) is allocated based on the number of Noncontrolling Interests – Operating Partnership/Limited Partners Capital in total in proportion to the number of Noncontrolling Interests – Operating Partnership/Limited Partners Capital in total plus the total number of Common Shares/General Partner Units. Net income is allocated to the Noncontrolling Interests – Operating Partnership/Limited Partners Capital based on the weighted average ownership percentage during the period. The Operating Partnership has the right but not the obligation to make a cash payment instead of issuing Common Shares to any and all holders of Noncontrolling Interests – Operating Partnership/Limited Partners Capital requesting an exchange of their Noncontrolling Interests – Operating Partnership/Limited Partners Capital with EQR. Once the Operating Partnership elects not to redeem the Noncontrolling Interests – Operating Partnership/Limited Partners Capital for cash, EQR is obligated to deliver Common Shares to the exchanging holder of the Noncontrolling Interests – Operating Partnership/Limited Partners Capital. 22 Table of Contents The Noncontrolling Interests – Operating Partnership/Limited Partners Capital are classified as either mezzanine equity or permanent equity. If EQR is required, either by contract or securities law, to deliver registered Common Shares, such Noncontrolling Interests – Operating Partnership/Limited Partners Capital are differentiated and referred to as “Redeemable Noncontrolling Interests – Operating Partnership” and “Redeemable Limited Partners,” respectively. Instruments that require settlement in registered shares cannot be classified in permanent equity as it is not always completely within an issuer’s control to deliver registered shares. Therefore, settlement in cash is assumed and that responsibility for settlement in cash is deemed to fall to the Operating Partnership as the primary source of cash for EQR, resulting in presentation in the mezzanine section of the balance sheet. The Redeemable Noncontrolling Interests – Operating Partnership/Redeemable Limited Partners are adjusted to the greater of carrying value or fair market value based on the Common Share price of EQR at the end of each respective reporting period. EQR has the ability to deliver unregistered Common Shares for the remaining portion of the Noncontrolling Interests – Operating Partnership/Limited Partners Capital that are classified in permanent equity at September 30, 2024 and December 31, 2023. The carrying value of the Redeemable Noncontrolling Interests – Operating Partnership/Redeemable Limited Partners is allocated based on the number of Redeemable Noncontrolling Interests – Operating Partnership/Redeemable Limited Partners in proportion to the number of Noncontrolling Interests – Operating Partnership/Limited Partners Capital in total. Such percentage of the total carrying value of Units/Limited Partner Units which is ascribed to the Redeemable Noncontrolling Interests – Operating Partnership/Redeemable Limited Partners is then adjusted to the greater of carrying value or fair market value as described above. As of September 30, 2024 and 2023, the Redeemable Noncontrolling Interests – Operating Partnership/Redeemable Limited Partners have a redemption value of approximately $ 351.8 million and $ 277.8 million, respectively, which represents the value of Common Shares that would be issued in exchange for the Redeemable Noncontrolling Interests – Operating Partnership/Redeemable Limited Partners. The following table presents the changes in the redemption value of the Redeemable Noncontrolling Interests – Operating Partnership/Redeemable Limited Partners for the nine months ended September 30, 2024 and 2023, respectively (amounts in thousands): 2024 2023 Balance at January 1, $ 289,248 $ 318,273 Change in market value 64,541 ( 18,613 ) Change in carrying value ( 1,986 ) ( 21,878 ) Balance at September 30, $ 351,803 $ 277,782 Net proceeds from EQR Common Share and Preferred Share (see definition below) offerings and proceeds from exercise of options for Common Shares are contributed by EQR to ERPOP. In return for those contributions, EQR receives a number of OP Units in ERPOP equal to the number of Common Shares it has issued in the equity offering (or in the case of a preferred equity offering, a number of preference units in ERPOP equal in number and having the same terms as the Preferred Shares issued in the equity offering). As a result, the net proceeds from Common Shares and Preferred Shares are allocated for the Company between shareholders’ equity and Noncontrolling Interests – Operating Partnership and for the Operating Partnership between General Partner’s Capital and Limited Partners Capital to account for the change in their respective percentage ownership of the underlying equity. The Company’s declaration of trust authorizes it to issue up to 100,000,000 preferred shares of beneficial interest, $ 0.01 par value per share (the “Preferred Shares”), with specific rights, preferences and other attributes as the Board of Trustees may determine, which may include preferences, powers and rights that are senior to the rights of holders of the Company’s Common Shares. The following table presents the Company’s issued and outstanding Preferred Shares/Preference Units as of September 30, 2024 and December 31, 2023: Amounts in thousands Annual Call Dividend Per September 30, December 31, Date (1) Share/Unit (2) 2024 2023 Preferred Shares/Preference Units of beneficial interest, $ 0.01 par value; 100,000,000 shares authorized: 8.29 % Series K Cumulative Redeemable Preferred Shares/Preference Units; liquidation value $ 50 per share/unit; 343,100 shares/units issued and outstanding as of September 30, 2024 and 745,600 shares/units issued and outstanding as of December 31, 2023 (3) 12/10/2026 $ 4.145 $ 17,155 $ 37,280 $ 17,155 $ 37,280 23 Table of Contents (1) On or after the call date, redeemable Preferred Shares/Preference Units may be redeemed for cash at the option of the Company or the Operating Partnership, respectively, in whole or in part, at a redemption price equal to the liquidation price per share/unit, plus accrued and unpaid distributions, if any. (2) Dividends on Preferred Shares/Preference Units are payable quarterly. (3) During the nine months ended September 30, 2024 , the Company repurchased and retired 402,500 Series K Preferred Shares/Preference Units with a liquidation value of approximately $ 20.1 million for total cash consideration of approximately $ 21.8 million, inclusive of premiums and accrued dividends through the redemption date. As a result of this partial redemption, the Company incurred a cash charge of approximately $ 1.4 million which was recorded as a premium on the redemption of Preferred Shares/Preference Units. Other EQR and ERPOP currently have an active universal shelf registration statement for the issuance of equity and debt securities that automatically became effective upon filing with the SEC in May 2022 and expires in May 2025. Per the terms of ERPOP’s partnership agreement, EQR contributes the net proceeds of all equity offerings to the capital of ERPOP in exchange for additional OP Units (on a one-for-one Common Share per OP Unit basis) or preference units (on a one-for-one preferred share per preference unit basis). The Company has an At-The-Market (“ATM”) share offering program which allows EQR to issue Common Shares from time to time into the existing trading market at current market prices or through negotiated transactions, including under forward sale arrangements. The current program matures in May 2025 and gives us the authority to issue up to 13.0 million shares, all of which remain available for issuance as of September 30, 2024. During the nine months ended September 30, 2024 , the Company repurchased and subsequently retired approximately $ 38.5 million ( 652,452 shares at a weighted average price per share of $ 58.95 ) of its Common Shares in the open market under its share repurchase program. Concurrent with these transactions, ERPOP repurchased and retired the same amount of OP Units previously issued to EQR. Prior to the share repurchase activity during the nine months ended September 30, 2024 , the Company had the authority to repurchase up to 13.0 million Common Shares under its share repurchase program, of which 12,347,548 shares remain authorized to repurchase as of September 30, 2024 . 4. Real Estate The following table summarizes the carrying amounts for the Company’s investment in real estate (at cost) as of September 30, 2024 and December 31, 2023 (amounts in thousands): September 30, 2024 December 31, 2023 Land $ 5,675,037 $ 5,581,876 Depreciable property: Buildings and improvements 20,760,047 19,809,432 Furniture, fixtures and equipment 2,822,816 2,609,600 In-Place lease intangibles 565,180 519,394 Projects under development: Land 40,031 3,201 Construction-in-progress 182,024 74,835 Land held for development: Land 46,160 82,026 Construction-in-progress 18,953 32,274 Investment in real estate 30,110,248 28,712,638 Accumulated depreciation ( 10,386,783 ) ( 9,810,337 ) Investment in real estate, net $ 19,723,465 $ 18,902,301 During the nine months ended September 30, 2024, the Company acquired the following from unaffiliated parties (purchase price and purchase price allocation in thousands): Purchase Price Allocation (1) Properties Apartment Units Purchase Price Land Depreciable Property Lease Intangible (2) Rental Properties – Consolidated 15 4,578 $ 1,317,845 $ 154,777 $ 1,152,251 $ 12,727 (1) Purchase price allocation includes capitalized closing costs. (2) One of the properties is subject to fully prepaid below market long-term ground and parking leases, recorded as a lease intangible asset included in right-of-use assets on the consolidated balance sheets. 24 Table of Contents During the nine months ended September 30, 2024, the Company disposed of the following to unaffiliated parties (sales price and net gain in thousands): Properties Apartment Units Sales Price Net Gain Rental Properties – Consolidated 6 969 $ 365,500 $ 227,829 5. Investments in Partially Owned Entities The Company has invested in various entities with unrelated third parties which are either consolidated or accounted for under the equity method of accounting (unconsolidated). Consolidated Variable Interest Entities (“VIEs”) In accordance with accounting standards for consolidation of VIEs, the Company consolidates ERPOP on EQR’s financial statements. As the sole general partner of ERPOP, EQR has exclusive control of ERPOP’s day-to-day management. The limited partners are not able to exercise substantive kick-out or participating rights. As a result, ERPOP qualifies as a VIE. EQR has a controlling financial interest in ERPOP and, thus, is ERPOP’s primary beneficiary. EQR has the power to direct the activities of ERPOP that most significantly impact ERPOP’s economic performance as well as the obligation to absorb losses or the right to receive benefits from ERPOP that could potentially be significant to ERPOP. The Company has various equity interests in certain joint ventures that have been deemed to be VIEs, and the Company is the VIEs’ primary beneficiary. As a result, the joint ventures are required to be consolidated on the Company’s financial statements. The following table summarizes the Company’s consolidated joint ventures as of September 30, 2024: Operating Properties (1) Projects Under Development (2) Properties Apartment Units Projects Apartment Units (3) Consolidated Joint Ventures (VIE) 14 3,060 1 440 (1) The land parcel under one of the properties is subject to a long-term ground lease. (2) Represents separate consolidated joint ventures for the purpose of developing multifamily rental properties. (3) Represents the intended number of apartment units to be developed. The following table provides consolidated assets and liabilities related to the Company's VIEs as of September 30, 2024 and December 31, 2023 (amounts in thousands): September 30, 2024 December 31, 2023 Consolidated Assets $ 631,890 $ 599,788 Consolidated Liabilities $ 47,373 $ 41,153 Investments in Unconsolidated Entities The Company has various equity interests in certain joint ventures that are unconsolidated and accounted for using the equity method of accounting. Most of these have been deemed to be VIEs and the Company is not the VIEs' primary beneficiary. The remaining have been deemed not to be VIEs and the Company does not have a controlling voting interest. The following table and information summarizes the Company’s investments in unconsolidated entities as of September 30, 2024 and December 31, 2023 (amounts in thousands except for ownership percentage): September 30, 2024 December 31, 2023 Ownership Percentage Investments in Unconsolidated Entities: Various Real Estate Holdings (VIE) $ 34,915 $ 35,421 Varies Projects Under Development and Land Held for Development (VIE) 297,480 220,192 62 % - 95 % (1) Real Estate Technology Funds/Companies (VIE) 27,666 26,691 Varies Other ( 251 ) ( 255 ) Varies Investments in Unconsolidated Entities $ 359,810 $ 282,049 25 Table of Contents (1) In certain instances, the joint venture agreements contain provisions for promoted interests in favor of our joint venture partner. If the terms of the promoted interest are attained, then our share of the proceeds from a sale or other capital event of the unconsolidated entity may be less than the indicated ownership percentage. The following table summarizes the Company’s unconsolidated joint ventures that were deemed to be VIEs as of September 30, 2024: Operating Properties Real Estate Holdings (1) Projects Under Development (2), (5) Projects Held for Development (2), (3) Properties Apartment Units Entities Projects Apartment Units (4) Projects Apartment Units (4) Unconsolidated Joint Ventures (VIE) 1 209 3 7 2,412 2 526 (1) Represents entities that hold various real estate investments. (2) Represents separate unconsolidated joint ventures for the purpose of developing multifamily rental properties. (3) Represents separate unconsolidated joint ventures that have not yet started. (4) Represents the intended number of apartment units to be developed. (5) The land parcel under one of the projects is subject to a long-term ground lease. 6. Restricted Deposits The following table presents the Company’s restricted deposits as of September 30, 2024 and December 31, 2023 (amounts in thousands): September 30, 2024 December 31, 2023 Mortgage escrow deposits: Real estate taxes and insurance $ 456 $ 307 Mortgage principal reserves/sinking funds 33,124 29,270 Mortgage escrow deposits 33,580 29,577 Restricted cash: Earnest money on pending acquisitions — 524 Restricted deposits on real estate investments 2,231 2,181 Resident security and utility deposits 42,624 40,149 Replacement reserves 17,439 15,571 Other 2,075 1,250 Restricted cash 64,369 59,675 Restricted deposits $ 97,949 $ 89,252 7. Leases Lessor Accounting The Company is the lessor for its residential and non-residential leases and these leases are accounted for as operating leases under the lease standard. 26 Table of Contents The following tables present the lease income types relating to lease payments for residential and non-residential leases along with the total other rental income for the nine months and quarters ended September 30, 2024 and 2023 (amounts in thousands): Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 Income Type Residential Leases Non-Residential Leases Total Residential Leases Non-Residential Leases Total Residential and non-residential rent $ 1,978,847 $ 48,658 $ 2,027,505 $ 1,926,869 $ 46,642 $ 1,973,511 Utility recoveries (RUBS income) (1) 67,731 752 68,483 64,007 662 64,669 Parking rent 34,738 1,027 35,765 32,955 354 33,309 Other lease revenue (2) ( 15,417 ) ( 1,070 ) ( 16,487 ) ( 19,172 ) 330 ( 18,842 ) Total lease revenue $ 2,065,899 $ 49,367 2,115,266 $ 2,004,659 $ 47,988 2,052,647 Parking revenue 32,553 30,033 Other revenue 65,510 63,784 Total other rental income (3) 98,063 93,817 Rental income $ 2,213,329 $ 2,146,464 Quarter Ended September 30, 2024 Quarter Ended September 30, 2023 Income Type Residential Leases Non-Residential Leases Total Residential Leases Non-Residential Leases Total Residential and non-residential rent $ 670,450 $ 14,948 $ 685,398 $ 650,531 $ 14,669 $ 665,200 Utility recoveries (RUBS income) (1) 22,275 317 22,592 21,221 243 21,464 Parking rent 11,703 394 12,097 11,062 129 11,191 Other lease revenue (2) ( 4,685 ) ( 589 ) ( 5,274 ) ( 5,752 ) ( 404 ) ( 6,156 ) Total lease revenue $ 699,743 $ 15,070 714,813 $ 677,062 $ 14,637 691,699 Parking revenue 10,838 9,638 Other revenue 22,697 22,730 Total other rental income (3) 33,535 32,368 Rental income $ 748,348 $ 724,067 (1) RUBS income primarily consists of variable payments representing the recovery of utility costs from residents. (2) Other lease revenue consists of the revenue adjustment related to bad debt (see below for further discussion) and other miscellaneous lease revenue. (3) Other rental income is accounted for under the revenue recognition standard and primarily consists of third-party transient parking revenue and ancillary income such as cable and laundry revenue. The following table presents residential accounts receivable and straight-line receivable balances for the Company’s properties as of September 30, 2024 and December 31, 2023 (amounts in thousands): Balance Sheet (Other assets): September 30, 2024 December 31, 2023 Residential accounts receivable balances $ 16,281 $ 21,477 Allowance for doubtful accounts ( 10,044 ) ( 15,846 ) Net receivable balances $ 6,237 $ 5,631 Straight-line receivable balances $ 9,141 $ 9,183 The following table presents residential bad debt for the Company’s properties for the nine months and quarters ended September 30, 2024 and 2023 (amounts in thousands): Nine Months Ended September 30, Quarter Ended September 30, Income Statement (Rental income): 2024 2023 2024 2023 Bad debt, net (1) $ 25,045 $ 28,862 $ 7,906 $ 9,042 % of residential rental income 1.2 % 1.4 % 1.1 % 1.3 % (1) Bad debt, net benefited from additional resident payments due to governmental rental assistance programs of approximately $ 1.2 mi llion and $ 2.4 million for the nine months ended September 30, 2024 and 2023, respectively, and $ 0.4 million and $ 0.5 million for the quarters ended September 30, 2024 and 2023 , respectively. 27 Table of Contents Lessee Accounting During the nine months ended September 30, 2024 , the Company acquired below market long-term ground and parking leases, each fully prepaid at $ 1 and expiring in 2110 , in connection with an apartment property acquisition as described in Note 4 and recorded a lease intangible asset of approximately $ 12.7 million, which is included in right-of-use assets on the consolidated balance sheets. 8. Debt EQR does not have any indebtedness as all debt is incurred by the Operating Partnership. Weighted average interest rates noted below for the nine months ended September 30, 2024 include the effect of any derivative instruments and amortization of premiums/discounts/OCI (other comprehensive income) on debt and derivatives. Mortgage Notes Payable The following table summarizes the Company’s mortgage notes payable activity for the nine months ended September 30, 2024 (amounts in thousands): Mortgage notes payable, net as of December 31, 2023 Proceeds Lump sum payoffs Scheduled principal repayments Amortization of premiums/ discounts Amortization of deferred financing costs, net (1) Mortgage notes payable, net as of September 30, 2024 Fixed Rate Debt: Secured – Conventional $ 1,398,598 $ — $ — $ — $ 1,193 $ 681 $ 1,400,472 Floating Rate Debt: Secured – Tax Exempt 234,304 — — ( 2,400 ) 933 105 232,942 Total $ 1,632,902 $ — $ — $ ( 2,400 ) $ 2,126 $ 786 $ 1,633,414 (1) Represents amortization of deferred financing costs, net of debt financing costs. The following table summarizes certain interest rate and maturity date information as of and for the nine months ended September 30, 2024: September 30, 2024 Interest Rate Ranges (ending) 0.10 % - 5.25 % Weighted Average Interest Rate 3.85 % Maturity Date Ranges 2029 - 2061 As of September 30, 2024, the Company had $ 244.3 million of secured tax-exempt bonds subject to third-party credit enhancement. Notes The following table summarizes the Company’s notes activity for the nine months ended September 30, 2024 (amounts in thousands): Notes, net as of December 31, 2023 Proceeds Lump sum payoffs Amortization of premiums/ discounts Amortization of deferred financing costs, net (1) Notes, net as of September 30, 2024 Fixed Rate Debt: Unsecured – Public $ 5,348,417 $ 597,954 (2) $ — $ 1,697 $ ( 2,398 ) $ 5,945,670 (1) Represents amortization of deferred financing costs, net of debt financing costs. (2) Issued $ 600.0 million of ten-year 4.65 % unsecured notes, receiving net proceeds before underwriting fees, hedge termination costs and other expenses. 28 Table of Contents The following table summarizes certain interest rate and maturity date information as of and for the nine months ended September 30, 2024: September 30, 2024 Interest Rate Ranges (ending) 1.85 % - 7.57 % Weighted Average Interest Rate 3.52 % Maturity Date Ranges 2025 - 2047 The Company’s unsecured public notes contain certain financial and operating covenants including, among other things, maintenance of certain financial ratios. The Company was in compliance with its unsecured public debt covenants for the nine months ended September 30, 2024. Line of Credit and Commercial Paper The Company has a $ 2.5 billion unsecured revolving credit facility maturing on October 26, 2027 . The Company has the ability to increase available borrowings by an additional $ 750.0 million by adding lenders to the facility, obtaining the agreement of existing lenders to increase their commitments or incurring one or more term loans. The interest rate on advances under the facility will generally be the Secured Overnight Financing Rate ("SOFR") plus a spread (currently 0.715 %), or based on bids received from the lending group, and the Company pays an annual facility fee (currently 0.125 %). Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating and other terms and conditions per the agreement. The weighted average interest rate on the revolving credit facility was 6.14 % for the nine months ended September 30, 2024. The Company has an unsecured commercial paper note program under which it may borrow up to a maximum of $ 1.0 billion subject to market conditions. The notes will be sold under customary terms in the United States commercial paper note market and will rank pari passu with all of the Company’s other unsecured senior indebtedness. The following table summarizes certain weighted average interest rate, maturity and amount outstanding information for the commercial paper program as of and for the nine months ended September 30, 2024: September 30, 2024 Weighted Average Interest Rate (1) 5.51 % Weighted Average Maturity (in days) 22 Weighted Average Amount Outstanding $ 420.5 million (1) The notes bear interest at various floating rates. The Company limits its utilization of the revolving credit facility in order to maintain liquidity to support its $ 1.0 billion commercial paper program along with certain other obligations. The following table presents the availability on the Company’s unsecured revolving credit facility as of September 30, 2024 (amounts in thousands): September 30, 2024 Unsecured revolving credit facility commitment $ 2,500,000 Commercial paper balance outstanding ( 789,000 ) Unsecured revolving credit facility balance outstanding — Other restricted amounts ( 3,438 ) Unsecured revolving credit facility availability $ 1,707,562 Other The following table summarizes the Company's total debt extinguishment costs recorded as additional expense for the nine months and quarters ended September 30, 2024 and 2023 (amounts in thousands): Nine Months Ended September 30, Quarter Ended September 30, 2024 2023 2024 2023 Write-offs of unamortized deferred financing costs $ — $ 1,143 $ — $ 1,096 29 Table of Contents 9. Fair Value Measurements The valuation of financial instruments requires the Company to make estimates and judgments that affect the fair value of the instruments. The Company, where possible, bases the fair values of its financial instruments on listed market prices and third-party quotes. Where these are not available, the Company bases its estimates on current instruments with similar terms and maturities or on other factors relevant to the financial instruments. In the normal course of business, the Company is exposed to the effect of interest rate changes. The Company may seek to manage these risks by following established risk management policies and procedures including the use of derivatives to hedge interest rate risk on debt instruments. The Company may also use derivatives to manage commodity prices in the daily operations of the business. A three-level valuation hierarchy exists for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows: • Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The following table summarizes the inputs to the valuations for each type of fair value measurement: Fair Value Measurement Type Valuation Inputs Employee holdings (other than Common Shares) within the supplemental executive retirement plan (the “SERP”) Quoted market prices for identical assets. These holdings are included in other assets and other liabilities on the consolidated balance sheets. Redeemable Noncontrolling Interests – Operating Partnership/Redeemable Limited Partners Quoted market price of Common Shares. Mortgage notes payable and private unsecured debt (including its commercial paper and line of credit, if applicable) Indicative rates provided by lenders of similar loans. Public unsecured notes Quoted market prices for each underlying issuance. Derivatives Readily observable market parameters such as forward yield curves and credit default swap data. The fair values of the Company’s financial instruments (other than the items listed above and the investments disclosed below ) approximate their carrying or contract value. The following table provides a summary of the carrying and fair values for the Company’s mortgage notes payable and unsecured debt (including its commercial paper and line of credit, if applicable) at September 30, 2024 and December 31, 2023, respectively (amounts in thousands): September 30, 2024 December 31, 2023 Carrying Value Estimated Fair Value (Level 2) Carrying Value Estimated Fair Value (Level 2) Mortgage notes payable, net $ 1,633,414 $ 1,556,724 $ 1,632,902 $ 1,509,706 Unsecured debt, net 6,732,231 6,450,650 5,757,548 5,346,488 Total debt, net $ 8,365,645 $ 8,007,374 $ 7,390,450 $ 6,856,194 30 Table of Contents The following tables provide a summary of the fair value measurements for each major category of assets and liabilities measured at fair value on a recurring basis and the location within the accompanying consolidated balance sheets at September 30, 2024 and December 31, 2023, respectively (amounts in thousands): Fair Value Measurements at Reporting Date Using Description Balance Sheet Location 9/30/2024 Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Supplemental Executive Retirement Plan Other Assets $ 109,840 $ 109,840 $ — $ — Liabilities Supplemental Executive Retirement Plan Other Liabilities $ 109,840 $ 109,840 $ — $ — Redeemable Noncontrolling Interests – Operating Partnership/Redeemable Limited Partners Mezzanine $ 351,803 $ — $ 351,803 $ — Fair Value Measurements at Reporting Date Using Description Balance Sheet Location 12/31/2023 Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Supplemental Executive Retirement Plan Other Assets $ 108,478 $ 108,478 $ — $ — Liabilities Supplemental Executive Retirement Plan Other Liabilities $ 108,478 $ 108,478 $ — $ — Redeemable Noncontrolling Interests – Operating Partnership/Redeemable Limited Partners Mezzanine $ 289,248 $ — $ 289,248 $ — The following tables provide a summary of the effect of cash flow hedges on the Company’s accompanying consolidated statements of operations and comprehensive income for the nine months ended September 30, 2024 and 2023, respectively (amounts in thousands): September 30, 2024 Type of Cash Flow Hedge Amount of Gain/(Loss) Recognized in OCI on Derivative Location of Gain/(Loss) Reclassified from Accumulated OCI into Income Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income Derivatives designated as hedging instruments: Interest Rate Contracts: Forward Starting Swaps $ ( 3,989 ) Interest expense $ ( 1,819 ) Total $ ( 3,989 ) $ ( 1,819 ) September 30, 2023 Type of Cash Flow Hedge Amount of Gain/(Loss) Recognized in OCI on Derivative Location of Gain/(Loss) Reclassified from Accumulated OCI into Income Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income Derivatives designated as hedging instruments: Interest Rate Contracts: Forward Starting Swaps $ 4,514 Interest expense $ ( 3,132 ) Total $ 4,514 $ ( 3,132 ) 31 Table of Contents As of September 30, 2024 and December 31, 2023 , there were approximately $ 3.5 million and $ 5.7 million in deferred gains, net, included in accumulated other comprehensive income (loss), respectively, related to previously settled and/or unsettled derivative instruments, of which an estimated $ 1.7 million may be recognized as additional interest expense during the twelve months ending September 30, 2025. During the nine months ended September 30, 2024 , the Company paid approximately $ 4.0 million to settle four forward starting swaps in conjunction with the issuance of $ 600.0 million of ten-year unsecured public notes. The entire $ 4.0 million was initially deferred as a component of accumulated other comprehensive income (loss) and will be recognized as an increase to interest expense over the ten-year term of the notes. Other The Company has invested in various equity securities without readily determinable fair values and has elected to measure them using the measurement alternative in accordance with the applicable accounting standards for equity securities. These investments are carried at cost less any impairment and adjusted to fair value if there are observable price changes for an identical or similar investment of the same issuer. The following table summarizes the Company’s real estate technology investment securities included in other assets as of September 30, 2024 and December 31, 2023 (amounts in thousands): September 30, 2024 December 31, 2023 Real Estate Technology Investments $ 30,419 $ 19,312 During the nine months ended September 30, 2024, the Company sold a portion of one of these investment securities for proceeds of approximatel y $ 7.5 million and realized a loss on sale of approximately $ 1.3 million, which is included in interest and other income in the consolidated statements of operations. During the nine months ended September 30, 2024, the Company adjusted certain of these investment securities to observable market prices and recorded a net unrealized gain of approximately $ 19.9 million, which is included in interest and other income in the consolidated statements of operations. 32 Table of Contents 10. Earnings Per Share and Earnings Per Unit Equity Residential The following tables set forth the computation of net income per share – basic and net income per share – diluted for the Company (amounts in thousands except per share amounts): Nine Months Ended September 30, Quarter Ended September 30, 2024 2023 2024 2023 Numerator for net income per share – basic: Net income $ 637,104 $ 546,219 $ 148,517 $ 181,286 Allocation to Noncontrolling Interests – Operating Partnership ( 17,290 ) ( 17,174 ) ( 4,012 ) ( 5,561 ) Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties ( 3,098 ) ( 5,299 ) ( 1,059 ) ( 3,217 ) Preferred distributions ( 1,258 ) ( 2,318 ) ( 356 ) ( 773 ) Premium on redemption of Preferred Shares ( 1,444 ) — — — Numerator for net income per share – basic $ 614,014 $ 521,428 $ 143,090 $ 171,735 Numerator for net income per share – diluted: Net income $ 637,104 $ 546,219 $ 148,517 $ 181,286 Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties ( 3,098 ) ( 5,299 ) ( 1,059 ) ( 3,217 ) Preferred distributions ( 1,258 ) ( 2,318 ) ( 356 ) ( 773 ) Premium on redemption of Preferred Shares ( 1,444 ) — — — Numerator for net income per share – diluted $ 631,304 $ 538,602 $ 147,102 $ 177,296 Denominator for net income per share – basic and diluted: Denominator for net income per share – basic 378,718 378,614 378,756 378,853 Effect of dilutive securities: OP Units 10,661 11,377 10,623 11,234 Long-term compensation shares/units 1,309 1,144 1,647 1,264 Denominator for net income per share – diluted 390,688 391,135 391,026 391,351 Net income per share – basic $ 1.62 $ 1.38 $ 0.38 $ 0.45 Net income per share – diluted $ 1.62 $ 1.38 $ 0.38 $ 0.45 ERP Operating Limited Partnership The following tables set forth the computation of net income per Unit – basic and net income per Unit – diluted for the Operating Partnership (amounts in thousands except per Unit amounts): Nine Months Ended September 30, Quarter Ended September 30, 2024 2023 2024 2023 Numerator for net income per Unit – basic and diluted: Net income $ 637,104 $ 546,219 $ 148,517 $ 181,286 Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties ( 3,098 ) ( 5,299 ) ( 1,059 ) ( 3,217 ) Allocation to Preference Units ( 1,258 ) ( 2,318 ) ( 356 ) ( 773 ) Allocation to premium on redemption of Preference Units ( 1,444 ) — — — Numerator for net income per Unit – basic and diluted $ 631,304 $ 538,602 $ 147,102 $ 177,296 Denominator for net income per Unit – basic and diluted: Denominator for net income per Unit – basic 389,379 389,991 389,379 390,087 Effect of dilutive securities: Dilution for Units issuable upon assumed exercise/vesting of the Company’s long-term compensation shares/units 1,309 1,144 1,647 1,264 Denominator for net income per Unit – diluted 390,688 391,135 391,026 391,351 Net income per Unit – basic $ 1.62 $ 1.38 $ 0.38 $ 0.45 Net income per Unit – diluted $ 1.62 $ 1.38 $ 0.38 $ 0.45 33 Table of Contents 11. Commitments and Contingencies Commitments Real Estate Development Commitments As of September 30, 2024 , the Company has both consolidated and unconsolidated real estate projects under development. The following table summarizes the gross remaining total project costs for the Company’s projects under development at September 30, 2024 (total project costs remaining in thousands): Projects Apartment Units Total Project Costs Remaining (1) Projects Under Development Consolidated 2 665 $ 162,738 Unconsolidated 7 2,412 269,964 Total Projects Under Development 9 3,077 $ 432,702 (1) The Company’s share of the $ 432.7 million in total project costs remaining approximates $ 231.3 million, with the balance funded by the Company’s joint venture partners (approximately $ 8.5 million) and/or applicable construction loans (approximately $ 192.9 million). We have entered into, and may continue in the future to enter into, joint venture agreements with third-party partners for the development of multifamily rental properties. The joint venture agreements with each development partner include buy-sell provisions that provide the right, but not the obligation, for the Company to acquire each respective partner’s interests or sell its interests at any time following the occurrence of certain pre-defined events described in the joint venture agreements. See Note 5 for additional discussion. Other Commitments We have entered into, and may continue in the future to enter into, real estate technology and other real estate fund investments. As of September 30, 2024 , the Company has invested in ten separate such investments totaling $ 41.6 million with aggregate remaining commitments of approximately $ 16.4 million. Contingencies Litigation and Legal Matters The Company, as an owner of real estate, is subject to various federal, state and local laws. Compliance by the Company with existing laws has not had a material adverse effect on the Company. However, the Company cannot predict the impact of new or changed laws or regulations on its current properties or on properties that it may acquire in the future. The Company is involved in various pending and threatened legal proceedings which arise in the ordinary course of business. The Company evaluates these litigation matters on an ongoing basis, but in no event less than quarterly, in assessing the adequacy of its accruals and disclosures. For legal proceedings in which it has been determined that a loss is both probable and reasonably estimable, the Company records new accruals and/or adjusts existing accruals that represent its best estimate of the loss incurred based on the facts and circumstances known at that time. As of September 30, 2024 and December 31, 2023 , the Company’s litigation accruals approximated $ 42.4 million and $ 17.1 million, respectively, and are included in other liabilities in the consolidated balance sheets. Actual losses may differ materially from the amounts noted above and the ultimate outcome of these legal proceedings is generally not yet determinable. As of September 30, 2024 and December 31, 2023, the Company does not believe there is any litigation pending or threatened against it that, either individually or in the aggregate and inclusive of the matters accrued for as noted above, may reasonably be expected to have a material adverse effect on the Company and its financial condition. The Company has been named as a defendant in a number of cases filed in late 2022 and 2023 alleging antitrust violations by RealPage, Inc., a seller of revenue management software products, and various owners and/or operators of multifamily housing, including us, that have utilized these products. The complaints allege collusion among the defendants to illegally fix and inflate the pricing of multifamily rents and seek monetary damages, injunctive relief, fees and costs. All of the cases except for one have been consolidated into a single putative class action in the United States District Court for the Middle District of Tennessee. On December 28, 2023, motions to dismiss this consolidated action, filed by RealPage, Inc. as well as us and our multifamily co-defendants, were denied by the Court and the case is proceeding. Another case with similar allegations has been filed by the District of Columbia against RealPage, Inc. and a number of multifamily owners and/or operators, including us. We believe these various lawsuits are without merit and we intend to vigorously defend against them. As these proceedings are in the early stages, it is not possible for the Company to predict the outcome nor is it possible to estimate the amount of loss, if any, which may be associated with an adverse decision in any of 34 Table of Contents these cases. The Company is named as a defendant in a class action in the United States District Court for the Northern District of California filed in 2016 which alleges that the amount of late fees charged by the Company were improperly determined under California law. The plaintiffs are seeking monetary damages and other relief. On April 8, 2024, the Court issued certain findings of facts and conclusions of law that are adverse to the Company’s legal position. At this time, the Company is continuing to defend the action. While the resolution of this matter cannot be predicted with certainty, the Company does not believe that the eventual outcome will have a material adverse effect on the Company and its financial condition. 12. Reportable Segments Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses and about which discrete financial information is available that is evaluated regularly by the chief operating decision maker. The chief operating decision maker decides how resources are allocated and assesses performance on a recurring basis at least quarterly. The Company’s primary business is the acquisition, development and management of multifamily residential properties, which includes the generation of rental and other related income through the leasing of apartment units to residents. The chief operating decision maker evaluates the Company’s operating performance geographically by market for same store properties and on a portfolio basis for non-same store properties. While the Company does maintain a non-residential presence, it accounts for less than 4.0 % of total revenues for the nine months ended September 30, 2024 and is designed as an amenity for our residential residents. The chief operating decision maker evaluates the performance of each property on a consolidated residential and non-residential basis. The Company’s geographic consolidated same store operating segments represent its reportable segments. The Company’s development activities are other business activities that do not constitute an operating segment and as such, have been aggregated in the “Other” category in the tables presented below. All revenues are from external customers and there is no customer who contributed 10% or more of the Company’s total revenues during the nine months and quarters ended September 30, 2024 and 2023, respectively. The primary financial measure for the Company’s rental real estate segment is net operating income (“NOI”), which represents rental income less: 1) property and maintenance expense and 2) real estate taxes and insurance expense (all as reflected in the accompanying consolidated statements of operations and comprehensive income). The Company believes that NOI is helpful to investors as a supplemental measure of its operating performance because it is a direct measure of the actual operating results of the Company’s apartment properties. Revenues for all leases are reflected on a straight-line basis in accordance with GAAP for the current and comparable periods. The following table presents a reconciliation of net income per the consolidated statements of operations to NOI for the nine months and quarters ended September 30, 2024 and 2023, respectively (amounts in thousands): Nine Months Ended September 30, Quarter Ended September 30, 2024 2023 2024 2023 Net income $ 637,104 $ 546,219 $ 148,517 $ 181,286 Adjustments: Property management 100,381 90,314 31,412 28,169 General and administrative 48,902 49,135 14,551 14,094 Depreciation 688,041 661,921 237,948 224,736 Net (gain) loss on sales of real estate properties ( 227,829 ) ( 127,034 ) 165 ( 26,912 ) Interest and other income ( 26,501 ) ( 11,296 ) ( 15,844 ) ( 7,627 ) Other expenses 59,094 20,517 13,971 4,958 Interest: Expense incurred, net 205,762 200,882 72,722 68,891 Amortization of deferred financing costs 5,784 7,023 1,948 3,027 Income and other tax expense (benefit) 925 892 290 258 (Income) loss from investments in unconsolidated entities 4,865 3,847 1,493 1,242 Total NOI $ 1,496,528 $ 1,442,420 $ 507,173 $ 492,122 35 Table of Contents The following tables present NOI from our rental real estate for each segment for the nine months and quarters ended September 30, 2024 and 2023, respectively, as well as total assets and capital expenditures at September 30, 2024 (amounts in thousands): Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 Rental Income Operating Expenses NOI Rental Income Operating Expenses NOI Same store (1) Los Angeles $ 359,597 $ 111,273 $ 248,324 $ 348,595 $ 108,917 $ 239,678 Orange County 93,760 21,113 72,647 90,080 20,188 69,892 San Diego 77,784 17,731 60,053 74,183 17,371 56,812 Subtotal - Southern California 531,141 150,117 381,024 512,858 146,476 366,382 Washington, D.C. 347,229 110,104 237,125 331,425 107,050 224,375 San Francisco 325,999 99,012 226,987 321,310 98,504 222,806 New York 369,642 151,331 218,311 356,157 145,192 210,965 Boston 244,474 69,882 174,592 234,291 69,072 165,219 Seattle 223,656 65,197 158,459 218,574 62,055 156,519 Denver 53,522 16,190 37,332 53,324 16,161 37,163 Other Expansion Markets 55,612 22,509 33,103 55,768 24,123 31,645 Total same store 2,151,275 684,342 1,466,933 2,083,707 668,633 1,415,074 Non-same store/other Non-same store (2) 54,874 22,230 32,644 22,406 10,893 11,513 Other (3) 7,180 10,229 ( 3,049 ) 40,351 24,518 15,833 Total non-same store/other 62,054 32,459 29,595 62,757 35,411 27,346 Totals $ 2,213,329 $ 716,801 $ 1,496,528 $ 2,146,464 $ 704,044 $ 1,442,420 (1) For the nine months ended September 30, 2024 and 2023 , same store primarily includes all properties acquired or completed that were stabilized prior to January 1, 2023, less properties subsequently sold, which represented 76,916 apartment units. (2) For the nine months ended September 30, 2024 and 2023, non-same store primarily includes properties acquired after January 1, 2023, plus any properties in lease-up and not stabilized as of January 1, 2023, and any properties undergoing major renovations. (3) Other includes development, other corporate operations and operations prior to disposition for properties sold. Quarter Ended September 30, 2024 Quarter Ended September 30, 2023 Rental Income Operating Expenses NOI Rental Income Operating Expenses NOI Same store (1) Los Angeles $ 120,211 $ 37,670 $ 82,541 $ 118,812 $ 36,343 $ 82,469 Orange County 31,488 7,248 24,240 30,663 6,792 23,871 San Diego 25,969 6,071 19,898 25,258 5,820 19,438 Subtotal - Southern California 177,668 50,989 126,679 174,733 48,955 125,778 Washington, D.C. 117,306 38,351 78,955 112,681 35,616 77,065 San Francisco 108,957 33,313 75,644 107,808 32,769 75,039 New York 123,506 50,011 73,495 118,327 48,055 70,272 Boston 81,941 23,156 58,785 78,562 22,875 55,687 Seattle 75,032 21,907 53,125 72,778 20,883 51,895 Denver 19,649 6,062 13,587 19,802 5,937 13,865 Other Expansion Markets 18,249 6,309 11,940 18,679 7,957 10,722 Total same store 722,308 230,098 492,210 703,370 223,047 480,323 Non-same store/other Non-same store (2) 25,391 9,371 16,020 8,059 4,099 3,960 Other (3) 649 1,706 ( 1,057 ) 12,638 4,799 7,839 Total non-same store/other 26,040 11,077 14,963 20,697 8,898 11,799 Totals $ 748,348 $ 241,175 $ 507,173 $ 724,067 $ 231,945 $ 492,122 (1) For the quarters ended September 30, 2024 and 2023 , same store primarily includes all properties acquired or completed that were stabilized prior to July 1, 2023, less properties subsequently sold, which represented 77,203 apartment units. 36 Table of Contents (2) For the quarters ended September 30, 2024 and 2023, non-same store primarily includes properties acquired after July 1, 2023, plus any properties in lease-up and not stabilized as of July 1, 2023, and any properties undergoing major renovations. (3) Other includes development, other corporate operations and operations prior to disposition for properties sold. Nine Months Ended September 30, 2024 Total Assets Capital Expenditures Same store (1) Los Angeles $ 2,441,079 $ 39,778 Orange County 334,057 12,059 San Diego 335,471 12,061 Subtotal - Southern California 3,110,607 63,898 Washington, D.C. 2,980,055 35,160 San Francisco 2,996,799 42,555 New York 3,241,250 19,683 Boston 2,028,747 21,954 Seattle 2,023,139 22,405 Denver 799,928 3,036 Other Expansion Markets 872,501 5,154 Total same store 18,053,026 213,845 Non-same store/other Non-same store (2) 1,998,651 15,724 Other (3) 874,144 538 Total non-same store/other 2,872,795 16,262 Totals $ 20,925,821 $ 230,107 (1) Same store primarily includes all properties acquired or completed that were stabilized prior to January 1, 2023, less properties subsequently sold, which represente d 76,916 ap artment units. (2) Non-same store primarily includes properties acquired after January 1, 2023, plus any properties in lease-up and not stabilized as of January 1, 2023, and any properties undergoing major renovations. (3) Other includes development, other corporate operations and capital expenditures for properties sold. 13. Subsequent Events Subsequent to September 30, 2024, the Company: • Acquired the following from unaffiliated parties (purchase price in thousands): Properties Apartment Units Purchase Price Rental Properties – Consolidated 1 274 $ 89,500 37 Table of Contents Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations For further information including definitions for capitalized terms not defined herein, refer to the Company’s and the Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2023. Forward-Looking Statements Forward-looking statements are intended to be made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates, projections and assumptions made by management. While the Company’s management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, which could cause actual results, performance or achievements of the Company to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Additional factors that might cause such differences are discussed in Part I of the Company’s and the Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2023, particularly those under Item 1A, Risk Factors. Forward-looking statements and related uncertainties are also included in the Notes to Consolidated Financial Statements in this report . Forward-looking statements are not guarantees of future performance, results or events. The forward-looking statements contained herein are made as of the date hereof and the Company undertakes no obligation to update or supplement these forward-looking statements. Overview Equity Residential (“EQR”) is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. ERP Operating Limited Partnership (“ERPOP”) is focused on conducting the multifamily property business of EQR. EQR is a Maryland real estate investment trust (“REIT”) formed in March 1993 and ERPOP is an Illinois limited partnership formed in May 1993. References to the “Company,” “we,” “us” or “our” mean collectively EQR, ERPOP and those entities/subsidiaries owned or controlled by EQR and/or ERPOP. References to the “Operating Partnership” mean collectively ERPOP and those entities/subsidiaries owned or controlled by ERPOP. EQR is the general partner of, and as of September 30, 2024 owned an approximate 97.0% ownership interest in, ERPOP. All of the Company’s property ownership, development and related business operations are conducted through the Operating Partnership and EQR has no material assets or liabilities other than its investment in ERPOP. EQR issues equity from time to time, the net proceeds of which it is obligated to contribute to ERPOP, but does not have any indebtedness as all debt is incurred by the Operating Partnership. The Operating Partnership holds substantially all of the assets of the Company, including the Company’s ownership interests in its joint ventures. The Operating Partnership conducts the operations of the business and is structured as a partnership with no publicly traded equity. The Company’s corporate headquarters is located in Chicago, Illinois and the Company also operates regional property management offices in most of its markets. Available Information You may access our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K, our proxy statements and any amendments to any of those reports/statements we file with or furnish to the Securities and Exchange Commission (“SEC”) free of charge on our website, www.equityapartments.com. These reports/statements are made available on our website as soon as reasonably practicable after we file them with or furnish them to the SEC. The information contained on our website, including any information referred to in this report as being available on our website, is not a part of or incorporated into this report. Business Objectives and Operating and Investing Strategies The Company’s and the Operating Partnership’s overall business objectives and operating and investing strategies have not changed from the information included in the Company’s and the Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2023. 38 Table of Contents Results of Operations 2024 Transactions In conjunction with our business objectives and operating and investing strategies, the following table provides a rollforward of the transactions that occurred during the nine months ended September 30, 2024: Portfolio Rollforward ($ in thousands) Properties Apartment Units Purchase Price Acquisition Cap Rate 12/31/2023 302 80,191 Acquisitions: Consolidated Rental Properties 14 4,418 $ 1,255,250 5.1 % Consolidated Rental Properties – Not Stabilized 1 160 $ 62,595 5.7 % Unconsolidated Land Parcels — — $ 33,394 Sales Price Disposition Yield Dispositions: Consolidated Rental Properties (6 ) (969 ) $ (365,500 ) (5.7 %) Completed Developments – Unconsolidated 1 209 Configuration Changes — 9 9/30/2024 312 84,018 Acquisitions • The consolidated properties acquired during the nine months ended September 30, 2024 are located in the Atlanta (5), Boston, Dallas/Ft. Worth (5) and Denver (4) markets. Dispositions • The consolidated properties disposed of during the nine months ended September 30, 2024 were located in the Boston, Orange County, San Francisco (2) and Washington, D.C. (2) markets. Developments • Consolidated: • The Company commenced construction on one partially owned consolidated apartment property during the nine months ended September 30, 2024, located in the Boston market, consisting of 440 apartment units totaling approximately $232.2 million of expected development costs; • The Company stabilized one partially owned consolidated apartment property during the nine months ended September 30, 2024, located in the Washington, D.C. market, consisting of 312 apartment units totaling approximately $106.0 million of development costs; and • The Company spent approximately $90.7 million during the nine months ended September 30, 2024, primarily for consolidated development projects. • Unconsolidated: • The Company completed construction on one unconsolidated apartment property during the nine months ended September 30, 2024, located in the Denver market, consisting of 209 apartment units totaling approximately $70.0 million of development costs; • The Company spent approximately $75.6 million during the nine months ended September 30, 2024, primarily for unconsolidated development projects; and • The Company previously entered into two separate unconsolidated joint ventures for the purpose of developing vacant land parcels in the Boston and Seattle markets. During the nine months ended September 30, 2024, the joint ventures acquired their respective land parcels for the total purchase price listed above. The Company commenced construction on these two apartment properties, which are expected to contain 639 total apartment units. Total expected development cost for these projects is $307.2 million, and the Company's total investment in these two joint ventures is approximately 39 Table of Contents $69.0 million as of September 30, 2024. See Notes 4 and 5 in the Notes to Consolidated Financial Statements for additional discussion regarding the Company’s real estate investments and investments in partially owned entities. Comparison of the nine months and quarter ended September 30, 2024 to the nine months and quarter ended September 30, 2023 The following table presents a reconciliation of diluted earnings per share/unit for the nine months and quarter ended September 30, 2024 as compared to the same periods in 2023: Nine Months Ended September 30 Quarter Ended September 30 Diluted earnings per share/unit for period ended 2023 $ 1.38 $ 0.45 Property NOI 0.12 0.04 Interest expense (0.01 ) (0.01 ) Corporate overhead (1) (0.02 ) (0.01 ) Net gain/loss on property sales 0.27 (0.06 ) Non-operating asset gains/losses 0.03 0.03 Depreciation expense (0.08 ) (0.04 ) Other (0.07 ) (0.02 ) Diluted earnings per share/unit for period ended 2024 $ 1.62 $ 0.38 (1) Corporate overhead includes property management and general and administrative expenses. The Company’s primary financial measure for evaluating each of its apartment communities is net operating income (“NOI”). NOI represents rental income less direct property operating expenses (including real estate taxes and insurance). The Company believes that NOI is helpful to investors as a supplemental measure of its operating performance because it is a direct measure of the actual operating results of the Company’s apartment properties. The following tables present reconciliations of net income per the consolidated statements of operations to NOI, along with rental income, operating expenses and NOI per the consolidated statements of operations allocated between same store and non-same store/other results (amounts in thousands): Nine Months Ended September 30, Quarter Ended September 30, 2024 2023 $ Change % Change 2024 2023 $ Change % Change Net income $ 637,104 $ 546,219 $ 90,885 16.6 % $ 148,517 $ 181,286 $ (32,769 ) (18.1 )% Adjustments: Property management 100,381 90,314 10,067 11.1 % 31,412 28,169 3,243 11.5 % General and administrative 48,902 49,135 (233 ) (0.5 )% 14,551 14,094 457 3.2 % Depreciation 688,041 661,921 26,120 3.9 % 237,948 224,736 13,212 5.9 % Net (gain) loss on sales of real estate properties (227,829 ) (127,034 ) (100,795 ) 79.3 % 165 (26,912 ) 27,077 (100.6 )% Interest and other income (26,501 ) (11,296 ) (15,205 ) 134.6 % (15,844 ) (7,627 ) (8,217 ) 107.7 % Other expenses 59,094 20,517 38,577 188.0 % 13,971 4,958 9,013 181.8 % Interest: Expense incurred, net 205,762 200,882 4,880 2.4 % 72,722 68,891 3,831 5.6 % Amortization of deferred financing costs 5,784 7,023 (1,239 ) (17.6 )% 1,948 3,027 (1,079 ) (35.6 )% Income and other tax expense (benefit) 925 892 33 3.7 % 290 258 32 12.4 % (Income) loss from investments in unconsolidated entities 4,865 3,847 1,018 26.5 % 1,493 1,242 251 20.2 % Total NOI $ 1,496,528 $ 1,442,420 $ 54,108 3.8 % $ 507,173 $ 492,122 $ 15,051 3.1 % Rental income: Same store $ 2,151,275 $ 2,083,707 $ 67,568 3.2 % $ 722,308 $ 703,370 $ 18,938 2.7 % Non-same store/other 62,054 62,757 (703 ) (1.1 )% 26,040 20,697 5,343 25.8 % Total rental income 2,213,329 2,146,464 66,865 3.1 % 748,348 724,067 24,281 3.4 % Operating expenses: Same store 684,342 668,633 15,709 2.3 % 230,098 223,047 7,051 3.2 % Non-same store/other 32,459 35,411 (2,952 ) (8.3 )% 11,077 8,898 2,179 24.5 % Total operating expenses 716,801 704,044 12,757 1.8 % 241,175 231,945 9,230 4.0 % NOI: Same store 1,466,933 1,415,074 51,859 3.7 % 492,210 480,323 11,887 2.5 % Non-same store/other 29,595 27,346 2,249 8.2 % 14,963 11,799 3,164 26.8 % Total NOI $ 1,496,528 $ 1,442,420 $ 54,108 3.8 % $ 507,173 $ 492,122 $ 15,051 3.1 % 40 Table of Contents Note: See Note 12 in the Notes to Consolidated Financial Statements for detail by reportable segment/market. • The increase in same store rental income is primarily driven by good demand and modest supply across most of our markets. • The increase in year-to-date same store operating expenses is due primarily to: • Real estate taxes – An $8.0 million increase due to escalation in rates and assessed values including an approximately one percentage point contribution to growth from 421-a tax abatement burnoffs in New York City. Once the burnoffs are completed, previously rent-restricted apartment units will transition to market; • Other on-site operating expenses – A $2.6 million increase primarily driven by higher property-related legal expenses; • Insurance – A $2.5 million increase due to higher premiums on property insurance renewal due to conditions in the insurance market that while less difficult than recent years, remain challenging; and • Utilities – A $1.7 million increase primarily driven by higher water, sewer and trash expense, partially offset by lower commodity prices for gas and electric. • Non-same store/other NOI results consist primarily of properties acquired in calendar years 2023 and 2024, operations from the Company’s development properties, other corporate operations and operations prior to disposition from 2023 and 2024 sold properties. • The increase in consolidated total NOI is primarily a result of the Company’s higher NOI from same store properties, largely due to improvement in same store revenues as noted above and the Company's continued focus on same store expense efficiency. See the Same Store Results section below for additional discussion of those results. See the reconciliation table of net income per the consolidated statements of operations to NOI above for the dollar and percentage changes related to the comparison discussions provided below. Property management expenses include off-site expenses associated with the self-management of the Company’s properties as well as management fees paid to any third-party management companies. The increases during the nine months and quarter ended September 30, 2024 as compared to the prior year periods are primarily attributable to increases in payroll-related costs, information technology expenses and legal and professional fees. General and administrative expenses, which include corporate operating expenses, decreased during the nine months ended September 30, 2024 as compared to the prior year period, primarily due to decreases in payroll-related costs, partially offset by increases in other public company costs. General and administrative expenses increased during the quarter ended September 30, 2024 as compared to the prior year period, primarily due to increases in travel costs and other public company expenses. Depreciation expense, which includes depreciation on non-real estate assets, increased during the nine months and quarter ended September 30, 2024 as compared to the prior year periods, primarily as a result of additional depreciation expense on properties acquired in 2023 and 2024 and development properties placed in service during 2023 and 2024, partially offset by lower depreciation from properties sold in 2023 and 2024. Net gain on sales of real estate properties increased during the nine months ended September 30, 2024 as compared to the prior year period, primarily as a result of the sale of six consolidated apartment properties for a higher gain in 2024 as compared to the sale of eight consolidated apartment properties in the same period in 2023. Net gain on sales of real estate properties decreased during the quarter ended September 30, 2024 as compared to the prior year period, primarily due to a loss on sale of one consolidated apartment property in the third quarter of 2024 as compared to a gain on sale of one consolidated apartment property in the same period in 2023. Interest and other income increased during the nine months and quarter ended September 30, 2024 as compared to the prior year periods, primarily due to a net increase in realized/unrealized gains of $12.6 million and $8.1 million, respectively, on various investment securities as well as short-term investment income on restricted deposit accounts due to a higher rate environment and higher overall invested balances. Other expenses increased during the nine months ended September 30, 2024 as compared to the prior year period, primarily due to increases in litigation accruals and advocacy contributions, partially offset by decreases in data transformation project costs that occurred during 2023 but not during 2024. Other expenses increased during the quarter ended September 30, 2024 as compared to the prior year period, primarily due to increases in advocacy contributions. 41 Table of Contents Interest expense, including amortization of deferred financing costs, increased during the nine months and quarter ended September 30, 2024 as compared to the prior year periods, primarily due to higher overall debt balances outstanding and higher rates on floating debt. The effective interest cost on all indebtedness, excluding debt extinguishment costs/prepayment penalties, for the nine months ended September 30, 2024 was 3.90% as compared to 3.81% for the prior year period, and for the quarter ended September 30, 2024 was 3.92% as compared to 3.81% for the prior year period. The Company capitalized interest of approximately $10.7 million and $9.6 million during the nine months ended September 30, 2024 and 2023, respectively, and $3.8 million and $2.6 million during the quarters ended September 30, 2024 and 2023, respectively. Loss from investments in unconsolidated entities increased during the nine months and quarter ended September 30, 2024 as compared to the prior year periods, primarily as a result of losses incurred on our unconsolidated development properties which recently started lease-up activities, partially offset by increases in net income of unconsolidated operating properties and a gain on sale of an unconsolidated operating property. Same Store Results Properties that the Company owned and were stabilized for all of both of the nine months ended September 30, 2024 and 2023, which represented 76,916 apartment units, drove the Company’s results of operations. Properties are considered “stabilized” when they have achieved 90% occupancy for three consecutive months. 42 Table of Contents The following table provides results and statistics related to our Residential same store operations for the nine months ended September 30, 2024 and 2023: September YTD 2024 vs. September YTD 2023 Same Store Residential Results/Statistics by Market Increase (Decrease) from Prior Year Markets/Metro Areas Apartment Units Sept. YTD 24 % of Actual NOI Sept. YTD 24 Average Rental Rate Sept. YTD 24 Weighted Average Physical Occupancy % Sept. YTD 24 Turnover Average Rental Rate Physical Occupancy Turnover Los Angeles 14,135 17.5 % $ 2,932 95.6 % 33.7 % 3.0 % 0.2 % 0.1 % Orange County 3,718 5.2 % 2,917 96.0 % 28.9 % 4.3 % (0.3 %) 0.0 % San Diego 2,878 4.2 % 3,119 95.9 % 32.1 % 4.0 % 0.4 % 0.0 % Subtotal – Southern California 20,731 26.9 % 2,955 95.7 % 32.6 % 3.4 % 0.1 % 0.0 % Washington, D.C. 14,416 16.5 % 2,716 96.9 % 32.6 % 4.6 % 0.2 % 0.1 % San Francisco 11,188 15.9 % 3,321 96.2 % 33.8 % 1.0 % 0.5 % 0.3 % New York 8,536 14.3 % 4,624 97.3 % 27.1 % 3.1 % 0.5 % (3.2 %) Boston 7,077 11.2 % 3,597 96.2 % 33.8 % 3.9 % 0.2 % (1.7 %) Seattle 9,266 10.4 % 2,602 96.2 % 36.0 % 0.7 % 1.0 % (3.8 %) Denver 2,505 2.6 % 2,418 96.3 % 42.7 % 0.8 % 0.0 % (3.9 %) Other Expansion Markets 3,197 2.2 % 1,958 95.2 % 45.8 % (1.4 %) 0.4 % 0.9 % Total 76,916 100.0 % $ 3,108 96.3 % 33.5 % 2.7 % 0.4 % (1.1 %) Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.3% of total revenues for the nine months ended September 30, 2024. During the nine months ended September 30, 2024, the Company had solid performance in its operating business, with healthy demand across most of our markets supported by a continuing solid job market, high employment levels among our target affluent renter demographic and wage growth across the economy. Competitive new supply has also been modest in most of our existing coastal markets yet has been elevated in our expansion markets. As expected, our East Coast markets continue to be our best performers. On the West Coast, Seattle has continued to show improvement, while San Francisco has improved but at a more modest pace. Our Southern California markets (namely the city of Los Angeles) have shown good demand but greater price sensitivity during the third quarter of 2024. The Company continued to make progress in move-out activity related to delinquent residents during the nine months ended September 30, 2024. While the eviction process remains challenging, we have made additional progress in reducing delinquencies in our portfolio. We expect this trend to continue through the remainder of 2024. We are seeing an increasingly active transaction market providing us with opportunities to acquire properties in our expansion markets. We are excited to grow our portfolio and create operating scale in these markets as we execute on our strategy to better balance our portfolio. Overall, the fundamentals of our business are healthy. Long-term, we expect elevated single family home ownership costs, positive household formation trends, manageable competitive new supply in our established coastal markets and the overall deficit in housing across the country to buffer the impact on our business from the risks of potential economic weakness. We also see our affluent resident base as being resilient to economic uncertainty, including elevated inflation, due to higher levels of disposable income and lower relative rent-to-income ratios. Liquidity and Capital Resources With approximately $1.7 billion in readily available liquidity, a strong balance sheet, limited near-term debt maturities, very strong credit metrics and ample access to capital markets, the Company believes it is well positioned to meet its future obligations and take advantage of opportunities. See further discussion below. 43 Table of Contents Statements of Cash Flows The following table sets forth our sources and uses of cash flows for the nine months ended September 30, 2024 and 2023 (amounts in thousands): Nine Months Ended September 30, 2024 2023 Cash flows provided by (used for): Operating activities $ 1,219,382 $ 1,188,524 Investing activities $ (1,363,616 ) $ (468,355 ) Financing activities $ 130,798 $ (730,614 ) The following provides information regarding the Company’s cash flows from operating, investing and financing activities for the nine months ended September 30, 2024. Operating Activities Our operating cash flows are primarily impacted by NOI and its components, such as Average Rental Rates, Physical Occupancy levels and operating expenses related to our properties. Cash provided by operating activities for the nine months ended September 30, 2024 as compared to the prior year period increased by approximately $30.9 million primarily as a result of the NOI and other changes discussed above in Results of Operations . Investing Activities Our investing cash flows are primarily impacted by our transaction activity (acquisitions/dispositions), development spend and capital expenditures. For the nine months ended September 30, 2024, key drivers were: • Acquired fifteen consolidated rental properties for approximately $1.3 billion; • Disposed of six consolidated rental properties, receiving net proceeds of approximately $360.9 million; • Invested $90.7 million primarily in consolidated development projects; • Invested $230.1 million in capital expenditures to real estate; and • Invested $79.6 million primarily in unconsolidated development joint venture entities as well as unconsolidated investments in real estate technology funds/companies for various technology initiatives. Financing Activities Our financing cash flows primarily relate to our borrowing activity (debt proceeds or repayment), distributions/dividends to shareholders/unitholders and other Common Share activity. For the nine months ended September 30, 2024, key drivers were: • Issued Common Shares related to share option exercises and ESPP purchases and received net proceeds of $20.1 million; • Paid dividends/distributions on Common Shares, Preferred Shares, Units (including OP Units and restricted units) and noncontrolling interests in partially owned properties totaling approximately $791.2 million; • Repurchased and retired 652,452 Common Shares, at a weighted average purchase price of $58.95 per share, for an aggregate purchased amount of approximately $38.5 million. See Note 3 in the Notes to Consolidated Financial Statements for further discussion; • Repurchased and retired 402,500 Series K Preferred Shares/Preference Units with a liquidation value of approximately $20.1 million for total cash consideration of approximately $21.8 million, inclusive of premiums and accrued dividends through the redemption date. See Note 3 in the Notes to Consolidated Financial Statements for further discussion; and • Issued $600.0 million of ten-year 4.65% unsecured notes, receiving net proceeds of approximately $598.0 million before underwriting fees, hedge termination costs and other expenses. The proceeds from this issuance were used to partially fund the Company’s acquisition activity during the third quarter of 2024. 44 Table of Contents Short-Term Liquidity and Cash Proceeds The Company generally expects to meet its short-term liquidity requirements, including capital expenditures related to maintaining its existing properties and scheduled unsecured note and mortgage note repayments, through its working capital, net cash provided by operating activities and borrowings under the Company’s revolving credit facility and commercial paper program. Currently, the Company considers its cash provided by operating activities to be adequate to meet operating requirements and payments of distributions. The following table presents the Company’s balances for cash and cash equivalents, restricted deposits and the available borrowing capacity on its revolving credit facility as of September 30, 2024 and December 31, 2023 (amounts in thousands): September 30, 2024 December 31, 2023 Cash and cash equivalents $ 28,610 $ 50,743 Restricted deposits $ 97,949 $ 89,252 Unsecured revolving credit facility availability $ 1,707,562 $ 2,086,585 Credit Facility and Commercial Paper Program The Company has a $2.5 billion unsecured revolving credit facility maturing October 26, 2027. The Company has the ability to increase available borrowings by an additional $750.0 million by adding lenders to the facility, obtaining the agreement of existing lenders to increase their commitments or incurring one or more term loans. The interest rate on advances under the facility will generally be the Secured Overnight Financing Rate (“SOFR”) plus a spread (currently 0.715%), or based on bids received from the lending group, and the Company pays an annual facility fee (currently 0.125%). Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating and other terms and conditions per the agreement. See Note 8 in the Notes to Consolidated Financial Statements for additional discussion of the Company’s credit facility. The Company may borrow up to a maximum of $1.0 billion under its commercial paper program subject to market conditions. The notes will be sold under customary terms in the United States commercial paper note market and will rank pari passu with all of the Company’s other unsecured senior indebtedness. The Company limits its utilization of the revolving credit facility in order to maintain liquidity to support its $1.0 billion commercial paper program along with certain other obligations. The following table presents the availability on the Company’s unsecured revolving credit facility as of October 28, 2024 (amounts in thousands): October 28, 2024 Unsecured revolving credit facility commitment $ 2,500,000 Commercial paper balance outstanding (994,985 ) Unsecured revolving credit facility balance outstanding (23,000 ) Other restricted amounts (3,438 ) Unsecured revolving credit facility availability $ 1,478,577 Dividend Policy The Company declared a dividend/distribution for the first, second and third quarters of 2024 of $0.675 per share/unit in each quarter, an annualized increase of 2.0% over the amount paid in 2023. All future dividends/distributions remain subject to the discretion of the Company’s Board of Trustees. Total dividends/distributions paid in October 2024 amounted to $263.4 million (excluding distributions on Partially Owned Properties), which consisted of certain distributions declared during the quarter ended September 30, 2024. 45 Table of Contents Long-Term Financing and Capital Needs The Company expects to meet its long-term liquidity requirements, such as lump sum unsecured note and mortgage debt maturities, property acquisitions and financing of development activities, through the issuance of secured and unsecured debt and equity securities (including additional OP Units), proceeds received from the disposition of certain properties and joint ventures, along with cash generated from operations after all distributions. The Company has a significant number of unencumbered properties available to secure additional mortgage borrowings should unsecured capital be unavailable or the cost of alternative sources of capital be too high. The value of and cash flow from these unencumbered properties are in excess of the requirements the Company must maintain in order to comply with covenants under its unsecured notes and line of credit. Of the $30.1 billion in investment in real estate on the Company’s balance sheet at September 30, 2024, $26.9 billion or 89.5% was unencumbered. However, there can be no assurances that these sources of capital will be available to the Company in the future on acceptable terms or otherwise. For additional details, see Item 1A, Risk Factors, of the Company’s and the Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2023. EQR issues equity and guarantees certain debt of the Operating Partnership from time to time. EQR does not have any indebtedness as all debt is incurred by the Operating Partnership. The Company’s total debt summary schedule as of September 30, 2024 is as follows: Debt Summary as of September 30, 2024 ($ in thousands) Debt Balances % of Total Secured $ 1,633,414 19.5 % Unsecured 6,732,231 80.5 % Total $ 8,365,645 100.0 % Fixed Rate Debt: Secured – Conventional $ 1,400,472 16.7 % Unsecured – Public 5,945,670 71.1 % Fixed Rate Debt 7,346,142 87.8 % Floating Rate Debt: Secured – Tax Exempt 232,942 2.8 % Unsecured – Revolving Credit Facility — — Unsecured – Commercial Paper Program 786,561 9.4 % Floating Rate Debt 1,019,503 12.2 % Total $ 8,365,645 100.0 % The Company’s long-term financing and capital needs and sources have not changed materially from the information included in the Company's and the Operating Partnership's Annual Report on Form 10-K for the year ended December 31, 2023. Critical Accounting Policies and Estimates The Company’s and the Operating Partnership’s critical accounting policies and estimates have not changed from the information included in the Company’s and the Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2023. 46 Table of Contents Funds From Operations and Normalized Funds From Operations The following is the Company’s and the Operating Partnership’s reconciliation of net income to FFO available to Common Shares and Units / Units and Normalized FFO available to Common Shares and Units / Units for the nine months and quarters ended September 30, 2024 and 2023: Funds From Operations and Normalized Funds From Operations (Amounts in thousands) Nine Months Ended September 30, Quarter Ended September 30, 2024 2023 2024 2023 Net income $ 637,104 $ 546,219 $ 148,517 $ 181,286 Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties (3,098 ) (5,299 ) (1,059 ) (3,217 ) Preferred/preference distributions (1,258 ) (2,318 ) (356 ) (773 ) Premium on redemption of Preferred Shares/Preference Units (1,444 ) — — — Net income available to Common Shares and Units / Units 631,304 538,602 147,102 177,296 Adjustments: Depreciation 688,041 661,921 237,948 224,736 Depreciation – Non-real estate additions (2,839 ) (3,291 ) (942 ) (1,032 ) Depreciation – Partially Owned Properties (1,645 ) (1,599 ) (556 ) (544 ) Depreciation – Unconsolidated Properties 3,881 1,921 2,429 695 Net (gain) loss on sales of unconsolidated entities - operating assets (710 ) — (710 ) — Net (gain) loss on sales of real estate properties (227,829 ) (127,034 ) 165 (26,912 ) Noncontrolling Interests share of gain (loss) on sales of real estate properties — 2,336 — 2,336 FFO available to Common Shares and Units / Units (1) (3) (4) 1,090,203 1,072,856 385,436 376,575 Adjustments: Write-off of pursuit costs 1,905 2,739 536 746 Debt extinguishment and preferred share/preference unit redemption (gains) losses 1,444 1,143 — 1,096 Non-operating asset (gains) losses (17,452 ) (4,735 ) (14,236 ) (5,766 ) Other miscellaneous items 53,432 14,831 12,758 3,488 Normalized FFO available to Common Shares and Units / Units (2) (3) (4) $ 1,129,532 $ 1,086,834 $ 384,494 $ 376,139 FFO (1) (3) $ 1,092,905 $ 1,075,174 $ 385,792 $ 377,348 Preferred/preference distributions (1,258 ) (2,318 ) (356 ) (773 ) Premium on redemption of Preferred Shares/Preference Units (1,444 ) — — — FFO available to Common Shares and Units / Units (1) (3) (4) $ 1,090,203 $ 1,072,856 $ 385,436 $ 376,575 Normalized FFO (2) (3) $ 1,130,790 $ 1,089,152 $ 384,850 $ 376,912 Preferred/preference distributions (1,258 ) (2,318 ) (356 ) (773 ) Normalized FFO available to Common Shares and Units / Units (2) (3) (4) $ 1,129,532 $ 1,086,834 $ 384,494 $ 376,139 (1) The National Association of Real Estate Investment Trusts (“Nareit”) defines funds from operations (“FFO”) (December 2018 White Paper) as net income (computed in accordance with accounting principles generally accepted in the United States (“GAAP”)), excluding gains or losses from sales and impairment write-downs of depreciable real estate and land when connected to the main business of a REIT, impairment write-downs of investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity and depreciation and amortization related to real estate. Adjustments for partially owned consolidated and unconsolidated partnerships and joint ventures are calculated to reflect funds from operations on the same basis. (2) Normalized funds from operations (“Normalized FFO”) begins with FFO and excludes: • the impact of any expenses relating to non-operating real estate asset impairment; • pursuit cost write-offs; • gains and losses from early debt extinguishment and preferred share/preference unit redemptions; • gains and losses from non-operating assets; and • other miscellaneous items. 47 Table of Contents (3) The Company believes that FFO and FFO available to Common Shares and Units / 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 from sales and impairment write-downs of depreciable real estate and excluding depreciation related to real estate (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 / Units can help compare the operating performance of a company’s real estate between periods or as compared to different companies. The Company also believes that Normalized FFO and Normalized FFO available to Common Shares and Units / Units are helpful to investors as supplemental measures of the operating performance of a real estate company because they allow investors to compare the Company’s operating performance to its performance in prior reporting periods and to the operating performance of other real estate companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual operating results. FFO, FFO available to Common Shares and Units / Units, Normalized FFO and Normalized FFO available to Common Shares and Units / Units do not represent net income, net income available to Common Shares / Units or net cash flows from operating activities in accordance with GAAP. Therefore, FFO, FFO available to Common Shares and Units / Units, Normalized FFO and Normalized FFO available to Common Shares and Units / Units should not be exclusively considered as alternatives to net income, net income available to Common Shares / Units or net cash flows from operating activities as determined by GAAP or as a measure of liquidity. The Company’s calculation of FFO, FFO available to Common Shares and Units / Units, Normalized FFO and Normalized FFO available to Common Shares and Units / Units may differ from other real estate companies due to, among other items, variations in cost capitalization policies for capital expenditures and, accordingly, may not be comparable to such other real estate companies. (4) FFO available to Common Shares and Units / Units and Normalized FFO available to Common Shares and Units / Units are calculated on a basis consistent with net income available to Common Shares / Units and reflects adjustments to net income for preferred distributions and premiums on redemption of preferred shares/preference units in accordance with GAAP. 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 Common Shares on a one-for-one basis. Item 3. Quantitative and Qualitat ive Disclosures About Market Risk The Company’s and the Operating Partnership’s market risk has not changed materially from the amounts and information reported in Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk , to the Company’s and the Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2023. Item 4. Controls and Procedures Equity Residential (a) Evaluation of Disclosure Controls and Procedures: Effective as of September 30, 2024, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures pursuant to Exchange Act Rules 13a-15 and 15d-15. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in its Exchange Act filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. (b) Changes in Internal Control over Financial Reporting: There were no changes to the internal control over financial reporting of the Company identified in connection with the Company’s evaluation referred to above that occurred during the third quarter of 2024 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. ERP Operating Limited Partnership (a) Evaluation of Disclosure Controls and Procedures: Effective as of September 30, 2024, the Operating Partnership carried out an evaluation, under the supervision and with the participation of the Operating Partnership’s management, including the Chief Executive Officer and Chief Financial Officer of EQR, of the effectiveness of the Operating Partnership’s disclosure controls and procedures pursuant to Exchange Act Rules 13a-15 and 15d-15. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures are effective to ensure that information required to be disclosed by the Operating Partnership in its Exchange Act filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. 48 Table of Contents (b) Changes in Internal Control over Financial Reporting: There were no changes to the internal control over financial reporting of the Operating Partnership identified in connection with the Operating Partnership’s evaluation referred to above that occurred during the third quarter of 2024 that have materially affected, or are reasonably likely to materially affect, the Operating Partnership’s internal control over financial reporting. PART II. OTHER INFORMATION Item 1. Lega l Proceedings Other than as disclosed below, there have been no changes to the legal proceedings discussed in Part I, Item 3 of the Company's and the Operating Partnership's Annual Report on Form 10-K for the year ended December 31, 2023. As of September 30, 2024, the Company does not believe there is any litigation pending or threatened against it that, either individually or in the aggregate, may reasonably be expected to have a material adverse effect on the Company and its financial condition. See Note 11 in the Notes to Consolidated Financial Statements for further discussion. The Company is named as a defendant in a class action in the United States District Court for the Northern District of California filed in 2016 which alleges that the amount of late fees charged by the Company were improperly determined under California law. The plaintiffs are seeking monetary damages and other relief. On April 8, 2024, the Court issued certain findings of facts and conclusions of law that are adverse to the Company’s legal position. At this time, the Company is continuing to defend the action. While the resolution of this matter cannot be predicted with certainty, the Company does not believe that the eventual outcome will have a material adverse effect on the Company and its financial condition. Item 1A. R isk Factors There have been no material changes to the risk factors that were discussed in Part I, Item 1A of the Company’s and the Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2023. Item 2. Unregistered Sales of Equi ty Securities and Use of Proceeds Unregistered Common Shares Issued in the Quarter Ended September 30, 2024 (Equity Residential) During the quarter ended September 30, 2024, EQR issued 100,888 Common Shares in exchange for 100,888 OP Units held by various limited partners of ERPOP. OP Units are generally exchangeable into Common Shares on a one-for-one basis or, at the option of ERPOP, the cash equivalent thereof, at any time one year after the date of issuance. These shares were either registered under the Securities Act of 1933, as amended (the “Securities Act”), or issued in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act and the rules and regulations promulgated thereunder, as these were transactions by an issuer not involving a public offering. In light of the manner of the sale and information obtained by EQR from the limited partners in connection with these transactions, EQR believes it may rely on these exemptions. Item 3. Defaults Up on Senior Securities None. Item 4. Mine Saf ety Disclosures Not applicable. Item 5. Other Information During the quarter ended September 30, 2024 , no trustee or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K. Item 6. Exhibits – S ee the Exhibit Index. 49 Table of Contents EXHIBI T INDEX The exhibits listed below are filed as part of this report. References to exhibits or other filings under the caption “Location” indicate that the exhibit or other filing has been filed, that the indexed exhibit and the exhibit referred to are the same and that the exhibit referred to is incorporated by reference. The Commission file numbers for our Exchange Act filings referenced below are 1-12252 (Equity Residential) and 0-24920 (ERP Operating Limited Partnership). Exhibit Description Location 3.1 Ninth Amended and Restated Bylaws of Equity Residential, effective September 19, 2024. Included as Exhibit 3.1 to Equity Residential's Form 8-K dated September 19, 2024, filed on September 24, 2024. 4.1 Form of 4.650% Note due September 15, 2034. Included as Exhibit 4.1 to Equity Residential's and ERP Operating Limited Partnership's Form 8-K dated September 9, 2024, filed on September 10, 2024. 31.1 Equity Residential – Certification of Mark J. Parrell, Chief Executive Officer. Attached herein. 31.2 Equity Residential – Certification of Robert A. Garechana, Chief Financial Officer. Attached herein. 31.3 ERP Operating Limited Partnership – Certification of Mark J. Parrell, Chief Executive Officer of Registrant’s General Partner. Attached herein. 31.4 ERP Operating Limited Partnership – Certification of Robert A. Garechana, Chief Financial Officer of Registrant’s General Partner. Attached herein. 32.1 Equity Residential – Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Mark J. Parrell, Chief Executive Officer of the Company. Attached herein. 32.2 Equity Residential – Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Robert A. Garechana, Chief Financial Officer of the Company. Attached herein. 32.3 ERP Operating Limited Partnership – Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Mark J. Parrell, Chief Executive Officer of Registrant’s General Partner. Attached herein. 32.4 ERP Operating Limited Partnership – Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Robert A. Garechana, Chief Financial Officer of Registrant’s General Partner. Attached herein. 101.INS Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. 101.SCH Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). 50 Table of Contents SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. EQUITY RESIDENTIAL Date: November 4, 2024 By: /s/ Robert A. Garechana Robert A. Garechana Executive Vice President and Chief Financial Officer (Principal Financial Officer) Date: November 4, 2024 By: /s/ Ian S. Kaufman Ian S. Kaufman Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) ERP OPERATING LIMITED PARTNERSHIP BY: EQUITY RESIDENTIAL ITS GENERAL PARTNER Date: November 4, 2024 By: /s/ Robert A. Garechana Robert A. Garechana Executive Vice President and Chief Financial Officer (Principal Financial Officer) Date: November 4, 2024 By: /s/ Ian S. Kaufman Ian S. Kaufman Senior Vice President and Chief Accounting Officer (Principal Accounting Officer)