EQUITY RESIDENTIAL (EQR)

Fourth Quarter 2009 Guidance

The company has established an FFO guidance range of $0.49 to $0.53 per share for the fourth quarter of 2009. The difference between the company’s actual third quarter FFO of $0.53 per share and the midpoint of the range for the fourth quarter is primarily due to lower total property NOI expected in the fourth quarter of 2009 as compared to the third quarter of 2009.

Third Quarter 2009 Guidance

The company has established an FFO guidance range of $0.49 to $0.53 per share for the third quarter of 2009. The difference between the company’s actual pre-impairment second quarter 2009 FFO of $0.62 per share and the midpoint of the range for the third quarter is primarily attributable to:

• the negative impact of approximately $0.07 per share from lower NOI from the company’s same store portfolio as well as dilution from 2009 transaction activity;
• the negative impact of approximately $0.02 per share from increased interest expense due to higher debt balances as a result of the company’s recent $500.0 million loan from Freddie Mac and lower capitalized interest due to reduced development activity; and
• the negative impact of approximately $0.02 per share from lower interest and other income in the third quarter.

Second Quarter 2009 Guidance

The company has established an FFO guidance range of $0.53 to $0.58 per share for the second quarter of 2009. The difference between the company’s actual first quarter 2009 FFO of $0.57 per share and the midpoint of the second quarter 2009 guidance range is primarily a result of lower total NOI partially offset by lower interest expense. The second quarter 2009 guidance midpoint assumes no additional gains from debt extinguishment.