FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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ý QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF |
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For the quarterly period ended SEPTEMBER 30, 2003 |
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OR |
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o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF |
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THE SECURITIES EXCHANGE ACT OF 1934 |
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Commission File Number: 1-12252 |
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EQUITY RESIDENTIAL |
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(Exact Name of Registrant as Specified in its Charter) |
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Maryland |
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13-3675988 |
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(State or Other Jurisdiction of Incorporation or Organization) |
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(I.R.S. Employer Identification No.) |
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Two North Riverside Plaza, Chicago, Illinois |
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60606 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
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(312) 474-1300 |
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(Registrant’s Telephone Number, Including Area Code) |
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http://www.equityapartments.com |
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(Registrant’s web site) |
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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. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act). Yes ý No o
The number of Common Shares of Beneficial Interest, $0.01 par value, outstanding on October 31, 2003 was 275,461,073.
EQUITY RESIDENTIAL
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands except for share amounts)
(Unaudited)
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September
30, |
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December
31, |
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ASSETS |
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Investment in real estate |
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Land |
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$ |
1,816,571 |
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$ |
1,803,577 |
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Depreciable property |
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11,062,709 |
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11,240,245 |
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Construction in progress |
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2,617 |
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2,441 |
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Investment in real estate |
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12,881,897 |
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13,046,263 |
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Accumulated depreciation |
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(2,303,479 |
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(2,112,017 |
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Investment in real estate, net of accumulated depreciation |
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10,578,418 |
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10,934,246 |
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Cash and cash equivalents |
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372,586 |
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29,875 |
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Investments in unconsolidated entities |
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521,750 |
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509,789 |
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Rents receivable |
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1,038 |
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2,926 |
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Deposits – restricted |
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287,838 |
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141,278 |
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Escrow deposits – mortgage |
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44,648 |
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50,565 |
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Deferred financing costs, net |
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31,616 |
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32,144 |
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Goodwill, net |
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30,000 |
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30,000 |
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Other assets |
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122,204 |
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80,094 |
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Total assets |
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$ |
11,990,098 |
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$ |
11,810,917 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Liabilities: |
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Mortgage notes payable |
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$ |
2,818,321 |
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$ |
2,927,614 |
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Notes, net |
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2,748,345 |
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2,456,085 |
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Line of credit |
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— |
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140,000 |
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Accounts payable and accrued expenses |
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89,545 |
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64,369 |
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Accrued interest payable |
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71,767 |
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63,151 |
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Rents received in advance and other liabilities |
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178,280 |
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165,095 |
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Security deposits |
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44,987 |
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45,333 |
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Distributions payable |
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145,214 |
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140,844 |
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Total liabilities |
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6,096,459 |
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6,002,491 |
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Commitments and contingencies |
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Minority Interests: |
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Operating Partnership |
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344,766 |
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349,646 |
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Preference Interests |
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246,000 |
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246,000 |
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Junior Preference Units |
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5,846 |
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5,846 |
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Partially Owned Properties |
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8,034 |
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9,811 |
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Total Minority Interests |
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604,646 |
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611,303 |
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Shareholders’ equity: |
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Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized; 7,064,210 shares issued and outstanding as of September 30, 2003 and 10,524,034 shares issued and outstanding as of December 31, 2002 |
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994,661 |
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946,157 |
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Common Shares of beneficial interest, $0.01 par value; 1,000,000,000 shares authorized; 275,197,181 shares issued and outstanding as of September 30, 2003 and 271,095,481 shares issued and outstanding as of December 31, 2002 |
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2,752 |
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2,711 |
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Paid in capital |
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4,885,823 |
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4,844,542 |
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Deferred compensation |
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(5,535 |
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(12,118 |
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Distributions in excess of accumulated earnings |
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(559,446 |
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(540,380 |
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Accumulated other comprehensive loss |
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(29,262 |
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(43,789 |
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Total shareholders’ equity |
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5,288,993 |
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5,197,123 |
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Total liabilities and shareholders’ equity |
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$ |
11,990,098 |
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$ |
11,810,917 |
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See accompanying notes
2
EQUITY RESIDENTIAL
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands except per share data)
(Unaudited)
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Nine Months Ended |
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Quarter Ended |
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2003 |
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2002 |
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2003 |
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2002 |
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REVENUES |
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Rental income |
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$ |
1,393,278 |
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$ |
1,396,069 |
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$ |
469,893 |
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$ |
466,379 |
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Fee and asset management |
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10,961 |
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6,957 |
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3,083 |
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2,647 |
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Total revenues |
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1,404,239 |
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1,403,026 |
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472,976 |
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469,026 |
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EXPENSES |
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Property and maintenance |
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384,772 |
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358,252 |
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132,406 |
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123,887 |
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Real estate taxes and insurance |
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149,202 |
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141,624 |
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50,008 |
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47,087 |
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Property management |
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48,827 |
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56,101 |
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16,633 |
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18,438 |
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Fee and asset management |
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5,556 |
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5,409 |
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1,949 |
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1,789 |
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Depreciation |
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341,723 |
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322,615 |
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115,346 |
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109,331 |
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General and administrative |
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28,854 |
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33,000 |
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8,708 |
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10,673 |
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Impairment on technology investments |
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872 |
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872 |
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291 |
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291 |
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Impairment on corporate housing business |
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17,122 |
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