EQR » Topics » Compliance with REIT Distribution Requirements May Affect Our Financial Condition

These excerpts taken from the EQR 10-K filed Feb 26, 2009.

Compliance with REIT Distribution Requirements May Affect Our Financial Condition

STYLE="margin-top:12px;margin-bottom:0px; margin-left:4%">Distribution Requirements May Increase the Indebtedness of the Company

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">We may be required from time to time, under certain circumstances, to accrue as income for tax purposes interest and rent earned but not yet received. In
such event, or upon our repayment of principal on debt, we could have taxable income without sufficient cash to enable us to meet the distribution requirements of a REIT. Accordingly, we could be required to borrow funds or liquidate investments on
adverse terms in order to meet these distribution requirements.

Compliance with REIT Distribution Requirements May Affect Our Financial Condition

STYLE="margin-top:12px;margin-bottom:0px; margin-left:4%">Distribution Requirements May Increase the Indebtedness of the Company

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">We may be required from time to time, under certain circumstances, to accrue as income for tax purposes interest and rent earned but not yet received. In
such event, or upon our repayment of principal on debt, we could have taxable income without sufficient cash to enable us to meet the distribution requirements of a REIT. Accordingly, we could be required to borrow funds or liquidate investments on
adverse terms in order to meet these distribution requirements.

EXCERPTS ON THIS PAGE:

10-K (2 sections)
Feb 26, 2009
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