Fourth Quarter 2020 Earnings

MANAGEMENT PRESENTATION

This presentation is complementary to the Company's conference call to discuss fourth quarter 2020 earnings on February 11, 2021, and should be read in conjunction with the Company's earnings release dated February 10, 2021. See pages 11 through 13 for information about forward-looking statements, a glossary of defined terms and a related reconciliation of non-GAAP financial measures including the reconciliations of Earnings Per Share ("EPS") to Funds From Operations ("FFO") per share and Normalized Funds From Operations ("Normalized FFO") per share.

Executive Summary

  • While challenging results will continue in 2021, we are confident that this year will be one of recovery for Equity Residential. Continued strength in demand is pushing Physical Occupancy up across the portfolio, especially in our Urban Core properties. Early signs of the return of pricing power are also evident across our markets driven by higher Physical Occupancy and the reopening of cities.

  • While forward trends are positive, our fourth quarter financial results were negatively impacted by both lower Blended Rates and Physical Occupancy as compared to the fourth quarter of 2019 when we delivered solid pre-pandemic results.

  • Assuming progress continues against the pandemic and conditions remain supportive, we expect the first half of 2021 to be the low point in our reported numbers and expect marked improvement in the second half of 2021.

  • Our portfolio has proved resilient and recovered quickly during previous downturns and we expect it to do so again.

Continued high demand for new leases combined with lower Move Out activity than earlier in 2020 has improved Physical Occupancy levels.

Gross Application Count

+10%

2019-202020-21

5,000

4,000

3,000

2,000

1,000

0

Jan

Physical Occupancy (month end)

5,000

4,000

3,000

2,000

1,000

0

Move In and Move Out Activity

Move OutsMove InsJulAugSepOctNovDecJan

JulAugSepOctNovDec

95.0%

94.8%

94.2%

94.4%

94.2%

94.4%

95.1%

Percentage of Residents Renewing by Month

Jan 2019- Jan 2020

Jan 2020- Jan 2021

75%

70%

65%

60%

55%

50%

45%

40%

35%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

Physical Occupancy

Jan 2019- Jan 2020

Jan 2020- Jan 2021

97.0%

96.5%

96.0%

95.5%

95.0%

94.5%

94.0%

93.5%Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

  • The Percentage of Residents Renewing with us has increased to approximately 52% in January and we expect that to increase to around 54% for February and March.

  • Pricing pressure on renewals is increasing as we renew residents who signed leases pre-pandemic.

  • Physical Occupancy has improved to 95.1% on January 31, 2021. There has been a 90 basis point improvement in same store Physical Occupancy since the end of the third quarter of 2020. The gap relative to prior year also continues to narrow.

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original document
  • Permalink

Disclaimer

Equity Residential published this content on 10 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 February 2021 21:46:10 UTC.