EQUITY RESIDENTIAL (EQR)

Subsequent Events

Subsequent to March 31, 2008 and through May 1, 2008, the Company sold one apartment property consisting of 115 units for $12.3 million (excluding condominium units).

Other

The Company incurred impairment losses of approximately $0.2 million (including discontinued operations) for both the quarters ended March 31, 2008 and 2007 related to the write-off of various pursuit and out-of-pocket costs for terminated acquisition, disposition (including halted condominium conversions) and development transactions.

During the quarter ended March 31, 2008, the Company received $0.4 million for the settlement of insurance litigation claims from 2000 through 2002 and $0.2 million for a breach of contract claim against the former owner of a property, both of which were recorded as interest and other income. In addition, the Company recognized $0.3 million of forfeited deposits for various terminated transactions, which are included in interest and other income.

During the quarter ended March 31, 2008, the Company recorded approximately $0.2 million and $1.7 million of additional property management expense and general and administrative expense, respectively, related to cash severance for various employees.

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Subsequent Events

Subsequent to September 30, 2007 and through October 31, 2007, the Company:

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21.          Subsequent Events/Other

Subsequent to December 31, 2006 and through February 7, 2007, the Company:

•      Acquired $536.5 million of apartment properties consisting of nine properties and 2,905 units;

•      Sold one residential property consisting of 280 units for $14.4 million (excluding condominium units); and

•      Repaid $115.3 million of mortgage loans.

During the years ended December 31, 2006 and 2005, the Company received proceeds from technology and other investments of $4.0 million and $82.1 million, respectively, from the following:

•      $25.0 million in full redemption of 1,000,000 shares of Wellsford 8.25% Convertible Trust Preferred Securities during 2005;

•      $3.7 million and $57.1 million for its ownership interest in Rent.com in connection with the acquisition of Rent.com by eBay, Inc. in 2006 and 2005, respectively.  Both amounts were recorded as interest and other income in the accompanying consolidated statements of operations; and

•      $0.3 million as a partial distribution for its ownership interest in Constellation Real Technologies, LLC in 2006.  The amount was recorded as interest and other income.

During 2006, the Company recognized $14.7 million of forfeited deposits for various terminated transactions, included in interest and other income.

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16.                Subsequent Events/Other

Subsequent Events

Subsequent to June 30, 2007 and through August 1, 2007, the Company:

·                  Acquired three residential properties consisting of 830 units and two land parcels for $196.9 million;

·                  Sold six residential properties consisting of 2,363 units for $381.5 million (excluding condominium units);

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·                  Repaid $26.9 million of mortgage loans;

·                  Repaid $50.0 million of 6.9% fixed rate public notes at maturity;

·                  Obtained $338.0 million in mortgage debt; and

·                  Redeemed its $175.0 million Series D Preferred Shares (see Note 3).

Subsequent to June 30, 2007 and through August 3, 2007, the Company repurchased 2,739,000 Common Shares at an average price of $42.12 per share for total consideration of $115.4 million, leaving $220.5 million remaining available for share repurchases.

Other

The Company incurred impairment losses of approximately $0.4 million and $1.2 million (including discontinued operations) for the six months ended June 30, 2007 and 2006, respectively, as a result of the write-off of various pursuit and out-of-pocket costs for terminated acquisition, disposition (including halted condominium conversions) and development transactions.

The Company recorded a reduction to general and administrative expense of approximately $1.7 million during the six months ended June 30, 2007 due to the successful resolution of a certain lawsuit in Florida, resulting in the reversal of the majority of a previously established litigation reserve.  The Company had previously recorded a reduction to general and administrative expense of approximately $2.8 million during the six months ended June 30, 2006 due to the recovery of insurance proceeds related to the same lawsuit.

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Subsequent Events

Subsequent to March 31, 2007 and through May 2, 2007, the Company:

·                  Acquired $314.1 million of residential properties consisting of ten properties and 1,380 units and one land parcel;

·                  Sold ten residential properties consisting of 2,198 units for $205.5 million (excluding condominium units);

·                  Assumed $111.7 million of mortgage debt in connection with the acquisition of eight properties;

·                  Repaid $69.6 million of mortgage loans and $50.0 million of unsecured notes; and

·                  Was released from $54.5 million of mortgage debt assumed by the purchaser on disposed properties.

On April 27, 2007, the Board of Trustees approved an increase of $200.1 million to the Company’s authorized share repurchase program.  As of April 27, 2007 and after giving effect to the above increase, the Company was authorized to repurchase $500.0 million of additional Common Shares.  Following the increased authorization (from May 2, 2007 through May 4, 2007), the Company repurchased an additional 1,296,000 of its Common Shares at an average price of $46.00 per share for total consideration of $59.6 million.  As a result, the Company is now authorized to repurchase $440.4 million of additional Common Shares as of May 4, 2007.

Other

The Company incurred impairment losses of approximately $0.2 million and $0.8 million (including discontinued operations) for the quarters ended March 31, 2007 and 2006, respectively, as a result of the write-off of various pursuit and out-of-pocket costs for terminated acquisition, disposition (including halted condominium conversions) and development transactions.

The Company recorded a reduction to general and administrative expense of approximately $1.6 million in the first quarter of 2007 due to the successful resolution of a certain lawsuit in Florida, resulting in the reversal of the majority of a previously established litigation reserve.

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Subsequent to September 30, 2006 and through November 1, 2006, the Company:

·                  Disposed of the Lexford Housing Division on October 5, 2006 for a cash purchase price of $1.086 billion.  The Lexford Housing Division was comprised of 289 properties, consisting of 27,115 apartment units located in ten states and a property management business, consisting of approximately 800 employees.  Prior to and in conjunction with the closing of the sale, the Company paid off $196.3 million of mortgage notes and incurred approximately $10.8 million in prepayment penalties upon extinguishment;

·                  Disposed of two other residential properties consisting of 408 units (excluding condominium units) and one commercial parcel for approximately $33.0 million;

·                  Acquired $222.6 million of apartment properties consisting of five properties and 1,029 units;

·                  Assumed $34.5 million of mortgage debt in connection with the acquisition of one property;

·                  Repaid $50.0 million of 6.69% fixed rate public notes and $11.0 million of floating rate mortgage debt at maturity; and

·                  Terminated its $500.0 million short-term revolving credit facility.

During the nine months ended September 30, 2006, the Company received proceeds from technology and other investments of $3.7 million and $82.1 million, respectively, from the following:

·                  $25.0 million in full redemption of its 1,000,000 shares of 8.25% Convertible Trust Preferred Securities during 2005; and

·                  $3.7 million and $57.1 million for its ownership interest in Rent.com in connection with the acquisition of Rent.com by eBay, Inc. in 2006 and 2005, respectively. Both amounts were recorded as interest and other income in the respective consolidated statements of operations.

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16.       Subsequent Events/Other

Subsequent to June 30, 2006 and through August 2, 2006, the Company:

·                  Acquired $113.6 million of apartment properties consisting of three properties and 625 units, assumed $26.9 million of mortgage debt on one property and issued OP Units valued at $3.1 million on one property;

·                  Obtained a new one year $500.0 million revolving credit facility maturing on July 6, 2007;

·                  Had $10.0 million of a 7.57% $150.0 million unsecured note issuance put back to it effective August 15, 2006;

·                  Acquired the remaining ownership interest in eleven previously partially owned properties for $5.7 million; and

·                  Repaid $8.6 million of mortgage loans.

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16.       Subsequent Events/Other

Subsequent to March 31, 2006 and through May 3, 2006, the Company:

·                  Acquired $47.9 million of apartment properties consisting of two properties and 315 units;

·                  Acquired for $29.6 million its partner’s interest in one development property containing 359 units,

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issuing 419,031 OP Units valued at $18.7 million and paying $10.9 million in cash;

·                  Sold $64.5 million of apartment properties consisting of two properties and 688 units (excluding condominium units) and $0.9 million of land parcels;

·                  Assumed $12.0 million of mortgage debt in connection with the acquisition of one property; and

·                  Repaid $3.1 million of mortgage loans.

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Subsequent to December 31, 2004 and through February 7, 2005, the Company:

•                  Acquired four properties consisting of 734 units and one parcel of vacant land for approximately $144.1 million;

•                  Disposed of one property consisting of 450 units (excluding condominium units) and a vacant land parcel for approximately $340.9 million;

•                  Assumed $47.6 million of mortgage debt on two properties in connection with their acquisitions;

•                  Executed an amended compensation agreement with its Chairman of the Board of Trustees extending his current agreement on the same terms and conditions for two more years through 2006 and providing him with a $3.25 million per year long-term compensation grant of options and restricted shares; and

•                  Issued irrevocable notices to redeem for cash during March 2005 all 1,320,000 units of its 8.50% Series B and C Preference Interests with a cumulative liquidation value of $66.0 million.

On February 24, 2005, the Company received $57.1 million in cash for its ownership interest in Rent.com in connection with the acquisition of Rent.com by eBay, Inc.

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Subsequent to December 31, 2004 and through February 7, 2005, the Company:

•                  Acquired four properties consisting of 734 units and one parcel of vacant land for approximately $144.1 million;

•                  Disposed of one property consisting of 450 units (excluding condominium units) and a vacant land parcel for approximately $340.9 million;

•                  Assumed $47.6 million of mortgage debt on two properties in connection with their acquisitions;

•                  Executed an amended compensation agreement with its Chairman of the Board of Trustees extending his current agreement on the same terms and conditions for two more years through 2006 and providing him with a $3.25 million per year long-term compensation grant of options and restricted shares; and

•                  Issued irrevocable notices to redeem for cash during March 2005 all 1,320,000 units of its 8.50% Series B and C Preference Interests with a cumulative liquidation value of $66.0 million.

On February 24, 2005, the Company received $57.1 million in cash for its ownership interest in Rent.com in connection with the acquisition of Rent.com by eBay, Inc.

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16.       Subsequent Events/Other

Subsequent to June 30, 2005 and through July 27, 2005, the Company:

•                  Disposed of three properties consisting of 700 units (excluding condominium units) for approximately $98.3 million; and

•                  Was released from $10.0 million of mortgage debt assumed by the purchaser on disposed properties.

During the six months ended June 30, 2005, the Company received proceeds of $82.1 million from the following investments:

•                  $25.0 million in full redemption of its 1,000,000 shares of 8.25% Convertible Trust Preferred Securities; and

•                  $57.1 million for its ownership interest in Rent.com in connection with the acquisition of Rent.com by eBay, Inc.  The $57.1 million was recorded as interest and other income in the accompanying consolidated statements of operations.

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