EQUITY RESIDENTIAL (EQR)

Full Year 2009 Guidance

The company has revised its guidance for its full year 2009 same store operating performance, funds from operations and transaction activities as well as other items listed on page 25 of this release. The changes to the full year same store and FFO guidance are listed below:

The difference between the midpoint of the range of the company’s previous guidance and the midpoint of the revised range is primarily due to higher than previously expected property NOI.

Full Year 2009 Guidance

The company has revised its guidance for its full year 2009 same store operating performance, funds from operations results and transactions activities as well as other items listed on page 24 of this release. The changes to the full year same store and FFO guidance are listed below:

The guidance midpoint for the company’s full year 2009 FFO remains the same as the company’s previous guidance due to higher than expected property NOI and higher interest and other income offset by the impairment charge. Annual interest expense is largely unchanged as higher expense due to the $500.0 million loan from Freddie Mac is offset by lower than anticipated rates on the company’s floating rate debt.

First Quarter and Full Year 2009 Guidance

The company has established an FFO guidance range of $0.53 to $0.58 per share for the first quarter of 2009.

The difference between the company’s pre-impairment fourth quarter 2008 FFO of $0.69 per share and the midpoint of the first quarter 2009 FFO guidance range is primarily a result of the following:

• Lower same store NOI of approximately $0.06 per share;
• Lower interest and other income in the first quarter of 2009 due to lower debt extinguishment gains. The company recorded debt extinguishment gains of approximately $0.06 per share in the fourth quarter 2008 and has no gains from debt extinguishment budgeted in the first quarter 2009; and
• Higher interest expense of approximately $0.02 per share due to the company's $543.0 million loan from Fannie Mae discussed above.

The company has established an FFO guidance range of $2.00 to $2.30 per share for the full year 2009. The assumptions underlying this guidance can be found on page 26 of this release.

The difference between the company’s pre-impairment full year 2008 FFO of $2.58 per share and the midpoint of the company’s guidance range for full year 2009 FFO is primarily a result of the following:

• Lower same store NOI of approximately $0.27 per share;
• Dilution from planned 2009 property sale and purchase activity totaling approximately $0.06 per share;
• Lower interest and other income of approximately $0.08 per share due primarily to the lower debt extinguishment gains mentioned above; and
• Higher interest expense of approximately $0.02 per share due to the company's $543.0 million loan from Fannie Mae offset by lower floating interest rates.