EQUITY RESIDENTIAL (EQR)

Fourth Quarter 2008 Earnings Guidance

The company has established an FFO guidance range of $0.60 to $0.65 per share for the fourth quarter of 2008. Interest expense is expected to be approximately $0.02 per share higher in the quarter from what the company previously forecasted due to increased LIBOR and tax exempt floating rates of interest. Also, the company has greatly slowed its acquisition efforts while continuing to sell properties which has created substantial liquidity, but will also reduce expected NOI by approximately $0.02 per share in the fourth quarter. The company used a portion of that liquidity to purchase certain of its debt at a substantial discount to par which will add a previously unbudgeted $0.04 per share to its fourth quarter results.

Third Quarter 2008 Earnings Guidance

The company has established an FFO guidance range of $0.61 to $0.65 per share for the third quarter of 2008. When compared to the second quarter 2008, the company’s third quarter FFO results will reflect a continued contribution from good same store operating performance and be negatively impacted by approximately $0.01 per share in connection with the timing of its new secured loan from Fannie Mae.

Second Quarter 2008 Earnings Guidance

The company has established an FFO guidance range of $0.61 to $0.65 per share for the second quarter of 2008. The difference between the company’s actual first quarter 2008 FFO of $0.59 per share and the midpoint of the second quarter 2008 guidance range is primarily a result of higher NOI from the company’s same store properties as well as the continuing positive impact from the lease up of development and other non-same store properties offset by some transaction dilution in the second quarter of 2008.