This excerpt taken from the EQR 10-Q filed Aug 8, 2005.
Rental income from properties other than Six-Month 2005 Same Store Properties increased by approximately $68.0 million primarily as a result of new properties acquired/consolidated in 2004 and the first six months of 2005.
Fee and asset management revenues, net of fee and asset management expenses, decreased by $1.6 million primarily as a result of lower income earned from Ft. Lewis. As of June 30, 2005 and 2004, the Company managed 17,539 units and 17,798 units, respectively, for third parties and unconsolidated entities.
Property management expenses include off-site expenses associated with the self-management of the Companys properties as well as management fees paid to third party management companies. These expenses increased by approximately $3.2 million. This increase is primarily attributable to higher payroll costs, including bonus and long-term compensation costs, during 2005.
Depreciation expense, which includes depreciation on non-real estate assets, increased $30.5 million
primarily as a result of additional depreciation expense on newly acquired properties and capital expenditures for all properties owned.
General and administrative expenses, which include corporate operating expenses, increased approximately $8.7 million between the periods under comparison. This increase is primarily attributable to higher executive compensation expense due to the previously announced December 2005 planned retirement of Bruce W. Duncan, the Companys Chief Executive Officer, and the March 2005 resignation of Edward Geraghty, the Companys former Eastern Division President, and additional accruals for certain management incentive programs as a result of the Rent.com gain (see discussion below). The Company anticipates that general and administrative expenses will approximate $63.0 million for the year ending December 31, 2005. This above assumption is based on current expectations and is forward-looking.