FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
ý QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended MARCH 31, 2004
OR
o TRANSITION REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 0-24920
ERP OPERATING LIMITED PARTNERSHIP
(Exact Name of Registrant as Specified in its Charter)
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Illinois |
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36-3894853 |
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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
ERP OPERATING LIMITED PARTNERSHIP
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
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March 31, |
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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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$ |
2,066,965 |
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$ |
1,845,547 |
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Depreciable property |
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11,901,855 |
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11,018,326 |
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Construction in progress (including land) |
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386,655 |
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10,506 |
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Investment in real estate |
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14,355,475 |
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12,874,379 |
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Accumulated depreciation |
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(2,337,502 |
) |
(2,296,013 |
) |
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Investment in real estate, net |
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12,017,973 |
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10,578,366 |
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Cash and cash equivalents |
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71,527 |
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49,579 |
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Investments in unconsolidated entities |
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13,503 |
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473,977 |
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Rents receivable |
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2,584 |
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426 |
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Deposits – restricted |
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135,664 |
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133,752 |
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Escrow deposits – mortgage |
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42,158 |
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41,104 |
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Deferred financing costs, net |
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31,852 |
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31,135 |
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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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111,967 |
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128,554 |
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Total assets |
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$ |
12,457,228 |
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$ |
11,466,893 |
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LIABILITIES AND PARTNERS’ CAPITAL |
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Liabilities: |
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Mortgage notes payable |
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$ |
3,221,993 |
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$ |
2,693,815 |
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Notes, net |
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2,656,105 |
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2,656,674 |
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Line of credit |
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420,000 |
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10,000 |
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Accounts payable and accrued expenses |
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90,204 |
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55,463 |
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Accrued interest payable |
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71,914 |
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60,334 |
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Rents received in advance and other liabilities |
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198,625 |
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189,372 |
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Security deposits |
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46,937 |
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44,670 |
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Distributions payable |
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141,231 |
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140,195 |
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Total liabilities |
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6,847,009 |
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5,850,523 |
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Commitments and contingencies |
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Minority Interests – Partially Owned Properties |
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13,582 |
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9,903 |
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Partners’ capital: |
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Preference Units |
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669,750 |
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670,913 |
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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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2,217 |
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2,217 |
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General Partner |
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4,384,385 |
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4,371,483 |
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Limited Partners |
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326,332 |
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342,809 |
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Deferred compensation |
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(2,641 |
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(3,554 |
) |
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Accumulated other comprehensive loss |
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(29,406 |
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(23,401 |
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Total partners’ capital |
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5,596,637 |
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5,606,467 |
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Total liabilities and partners’ capital |
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$ |
12,457,228 |
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$ |
11,466,893 |
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See accompanying notes
2
ERP
OPERATING LIMITED PARTNERSHIP
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Amounts
in thousands except per OP Unit data)
(Unaudited)
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Quarter Ended March 31, |
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2004 |
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2003 |
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REVENUES |
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Rental income |
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$ |
459,654 |
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$ |
435,803 |
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Fee and asset management |
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3,007 |
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2,488 |
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Total revenues |
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462,661 |
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438,291 |
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EXPENSES |
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Property and maintenance |
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125,995 |
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118,422 |
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Real estate taxes and insurance |
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52,471 |
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47,857 |
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Property management |
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17,286 |
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15,851 |
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Fee and asset management |
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1,995 |
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1,770 |
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Depreciation |
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115,610 |
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105,778 |
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General and administrative |
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9,988 |
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11,176 |
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Impairment on technology investments |
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— |
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291 |
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Total expenses |
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323,345 |
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301,145 |
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Operating income |
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139,316 |
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137,146 |
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Interest and other income |
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2,108 |
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3,337 |
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Interest: |
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Expense incurred, net |
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(79,858 |
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(79,417 |
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Amortization of deferred financing costs |
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(1,426 |
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(1,338 |
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Income before allocation to Minority Interests, income (loss) from investments in unconsolidated entities, net gain on sales of unconsolidated entities and discontinued operations |
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60,140 |
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59,728 |
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Allocation to Minority Interests – Partially Owned Properties |
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(147 |
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(115 |
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Income (loss) from investments in unconsolidated entities |
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(7,406 |
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107 |
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Net gain on sales of unconsolidated entities |
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2,434 |
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1,212 |
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Income from continuing operations |
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55,021 |
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60,932 |
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Net gain on sales of discontinued operations |
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71,499 |
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70,672 |
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Discontinued operations, net |
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(1,815 |
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12,853 |
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Net income |
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$ |
124,705 |
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$ |
144,457 |
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ALLOCATION OF NET INCOME: |
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