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Equity Residential Reports Operating Results (10-K)

February 24, 2011 | About:
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10qk

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Equity Residential (EQR) filed Annual Report for the period ended 2010-12-31.

Equity Residential has a market cap of $15.35 billion; its shares were traded at around $53.95 with a P/E ratio of 24.1 and P/S ratio of 7.7. The dividend yield of Equity Residential stocks is 3.4%. Equity Residential had an annual average earning growth of 3.2% over the past 5 years.Hedge Fund Gurus that owns EQR: Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates, Manning & Napier Advisors, Inc, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns EQR: Ken Heebner of Capital Growth Management LP, Pioneer Investments, Jeremy Grantham of GMO LLC, John Keeley of Keeley Fund Management, Dodge & Cox.

Highlight of Business Operations:

The aggregate market value of Common Shares held by non-affiliates of the Registrant was approximately $11.4 billion based upon the closing price on June 30, 2010 of $41.64 using beneficial ownership of shares rules adopted pursuant to Section 13 of the Securities Exchange Act of 1934 to exclude voting shares owned by Trustees and Executive Officers, some of who may not be held to be affiliates upon judicial determination.

The Company primarily sources the funds for its new property acquisitions in its core markets with the sales proceeds from selling assets that are older or located in non-core markets. During the last five years, the Company has sold over 97,000 apartment units for an aggregate sales price of $7.2 billion and acquired nearly 25,000 apartment units in its core markets for approximately $5.5 billion. We are currently acquiring and developing assets primarily in the following targeted metropolitan areas: Boston, New York, Washington DC, South Florida, Southern California, San Francisco, Seattle and to a lesser extent Denver. We also have investments (in the aggregate about 18% of our NOI) in other markets including Atlanta, Phoenix, Portland, Oregon, New England excluding Boston, Tampa, Orlando and Jacksonville but do not intend to acquire or develop assets in these markets.

The Operating Partnership has a $1.425 billion (net of $75.0 million which had been committed by a now bankrupt financial institution and is not available for borrowing) unsecured revolving credit facility maturing on February 28, 2012, with the ability to increase available borrowings by an additional $500.0 million by adding additional banks to the facility or obtaining the agreement of existing banks to increase their commitments. Advances under the credit facility bear interest at variable rates based upon LIBOR at various interest periods plus a spread (currently 0.50%) dependent upon the Operating Partnerships credit rating or based on bids received from the lending group. EQR has guaranteed the Operating Partnerships credit facility up to the maximum amount and for the full term of the facility.

As of December 31, 2010, the amount available on the credit facility was $1.28 billion (net of $147.3 million which was restricted/dedicated to support letters of credit and net of the $75.0 million discussed above) and there was no amount outstanding. During the year ended December 31, 2010, the weighted average interest rate was 0.66%. As of December 31, 2009, the amount available on the credit facility was $1.37 billion (net of $56.7 million which was restricted/dedicated to support letters of credit and net of the $75.0 million discussed above). The Company did not draw and had no balance outstanding on its revolving credit facility at any time during the year ended December 31, 2009.

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