EQUITY RESIDENTIAL (EQR)

Liquidity

On June 29, 2009, the company closed a $500.0 million secured loan with Freddie Mac (NYSE: FRE), originated by Deutsche Bank Berkshire Mortgage. The loan is interest only and matures in eleven years with the first ten years fixed and the final year at a floating rate of interest. The loan, which is collateralized with thirteen assets in seven markets, has an all-in effective interest rate of approximately 5.6%. The closing of this loan continues the company's strategy of maintaining excellent liquidity and addressing funding obligations well before loan maturities.

The company currently has $565.0 million in unrestricted cash or securities readily convertible to cash, inclusive of the secured loan proceeds, and $1.35 billion available on its unsecured revolving credit facility. With current cash on hand, the company can meet all of its 2009 and 2010 debt maturities and development obligations. Inclusive of current cash on hand, the unsecured revolving credit facility and net disposition proceeds for 2009 as provided in current guidance, the company can meet all of its obligations through 2011.

Liquidity

During the first quarter of 2009, the company completed a public tender to repurchase and retire at par approximately $105.2 million of the principal amount of its 4.75% Notes due June 15, 2009 and approximately $185.2 of the million principal amount of its 6.95% Notes due March 2, 2011. Also during the first quarter, the company repurchased and retired approximately $17.5 million of the principal amount of its 3.85% Convertible Notes due August 15, 2026, resulting in debt extinguishment gains to the company of approximately $2.0 million. Details of these transactions can be found on page 15 of this release.

At March 31, 2009, the company had approximately $611 million of unrestricted cash or securities readily convertible to cash (including approximately $139 million of federally insured notes and deposits classified as “Other assets” and approximately $43 million of 1031 exchange proceeds classified as “Deposits-restricted” on the balance sheet) and approximately $1.31 billion available on its unsecured revolving credit facility. The company has access to this credit facility, well-priced secured debt, improving public debt markets and net transaction proceeds from its sale of non-core assets to meet its near and longer-term funding needs.

Liquidity

On December 23, 2008, the company announced that it closed a $543.0 million secured loan from Fannie Mae (NYSE: FNM). The loan is interest only and matures in eight years with the first seven years fixed and the last year at a floating rate of interest. The all-in effective interest rate is approximately 6%. Including the above mentioned loan, during 2008 the company borrowed approximately $1.6 billion in secured debt proceeds from Fannie Mae and Freddie Mac (NYSE: FRE) at a weighted average rate of approximately 5.7% for an average fixed rate term of approximately nine years.

The company used approximately $445.7 million in cash on hand from the secured loans referenced above to repurchase and retire approximately $464.4 million of various unsecured notes with maturities through 2011 both through open market transactions and a public tender. This activity included the company’s repurchase of approximately $174.0 million of these notes through December 31, 2008 and approximately $290.4 million of these notes during 2009. In total, this resulted in debt extinguishment gains to the company of approximately $18.7 million, all of which were recognized in 2008. Details of these transactions can be found on page 17 of this release.

The agency loans and debt repurchases are a continuation of the company’s strategy to proactively address its debt maturities and wholly-owned development funding needs. At December 31, 2008, the company had approximately $1.02 billion of unrestricted cash and federally insured investment deposits (approximately $129.0 million of which are classified as "Other assets" on the balance sheet) and approximately $1.3 billion available on its unsecured revolving credit facility. After the recent debt repurchases, the company currently has approximately $515.0 million of unrestricted cash and federally insured investment deposits and approximately $1.3 billion available on its unsecured revolving credit facility. The company’s total outstanding indebtedness is currently approximately $10.2 billion. The company has sufficient liquidity, between its line of credit and cash on hand, to meet its funding needs into 2011.

Liquidity

On August 26, 2008 the company announced that it closed a $550 million secured loan originated by Wells Fargo (NYSE: WFC) for repurchase by Fannie Mae (NYSE: FNM). The loan is interest only and matures in 11.5 years with the first 10.5 years fixed and the last year at a floating rate of interest. The all-in effective interest rate is approximately 6%.

The company currently has approximately $450 million of cash and cash equivalents and approximately $1.3 billion available on its unsecured revolving credit facility. The company anticipates having cash and cash equivalents of approximately $660 million and approximately $1.3 billion available on its unsecured revolving credit facility at December 31, 2008. Management believes that these existing funding sources will give the company sufficient liquidity to meet its future funding requirements.

Liquidity

The company recently agreed to borrow $550 million in a loan originated by Wells Fargo (NYSE:WFC) for repurchase by Fannie Mae (NYSE:FNM). This is a secured loan with an all-in effective interest rate of approximately 6%. The loan is interest only and matures in 11.5 years with the first 10.5 years fixed and the last year at a floating rate of interest. The funding is expected to occur in late August 2008. Equity Residential currently has approximately $1.4 billion available on its unsecured revolving credit facility and approximately $145 million of unrestricted cash. These existing funding sources, combined with the new Fannie Mae/Wells Fargo borrowing, give the company ample liquidity to meet its 2008 and 2009 funding requirements.

Liquidity

On March 10, 2008, the company closed a $500 million Freddie Mac secured loan with an all-in effective interest rate of 5.48%. The company currently has approximately $1.4 billion available on its unsecured revolving credit facility and approximately $325 million of unrestricted cash. The company’s liquidity is sufficient to retire all of its 2008 loan maturities as they come due. The company anticipates having approximately $1.0 billion of availability on its unsecured revolving credit facility at year end 2008.