For further information including definitions for capitalized terms not defined herein, refer to the Company’s and the Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2024.

Forward-Looking Statements

Forward-looking statements are intended to be made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates, projections and assumptions made by management. While the Company’s management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, which could cause actual results, performance or achievements of the Company to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Additional factors that might cause such differences are discussed in Part I of the Company’s and the Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2024, particularly those under Item 1A, Risk Factors. Forward-looking statements and related uncertainties are also included in the Notes to Consolidated Financial Statements in this report*.* Forward-looking statements are not guarantees of future performance, results or events. The forward-looking statements contained herein are made as of the date hereof and the Company undertakes no obligation to update or supplement these forward-looking statements.

Overview

Equity Residential (“EQR”) is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. ERP Operating Limited Partnership (“ERPOP”) is focused on conducting the multifamily property business of EQR. EQR is a Maryland real estate investment trust (“REIT”) formed in March 1993 and ERPOP is an Illinois limited partnership formed in May 1993. References to the “Company,” “we,” “us” or “our” mean collectively EQR, ERPOP and those entities/subsidiaries owned or controlled by EQR and/or ERPOP. References to the “Operating Partnership” mean collectively ERPOP and those entities/subsidiaries owned or controlled by ERPOP.

EQR is the general partner of, and as of June 30, 2025 owned an approximate 97.0% ownership interest in, ERPOP. All of the Company’s property ownership, development and related business operations are conducted through the Operating Partnership and EQR has no material assets or liabilities other than its investment in ERPOP. EQR issues equity from time to time, the net proceeds of which it is obligated to contribute to ERPOP, but does not have any indebtedness as all debt is incurred by the Operating Partnership. The Operating Partnership holds substantially all of the assets of the Company, including the Company’s ownership interests in its joint ventures. The Operating Partnership conducts the operations of the business and is structured as a partnership with no publicly traded equity.

The Company’s corporate headquarters is located in Chicago, Illinois and the Company also operates regional property management offices in most of its markets.

Available Information

You may access our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K, our proxy statements and any amendments to any of those reports/statements we file with or furnish to the Securities and Exchange Commission (“SEC”) free of charge on our website, www.equityapartments.com. These reports/statements are made available on our website as soon as reasonably practicable after we file them with or furnish them to the SEC. The information contained on our website, including any information referred to in this report as being available on our website, is not a part of or incorporated into this report.

Business Objectives and Operating and Investing Strategies

The Company’s and the Operating Partnership’s overall business objectives and operating and investing strategies have not changed from the information included in the Company’s and the Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2024.

Results of Operations

2025 Transactions

In conjunction with our business objectives and operating and investing strategies, the following table provides a rollforward of the transactions that occurred during the six months ended June 30, 2025:

Portfolio Rollforward

($ in thousands)

		Properties				Apartment Units				Purchase Price				Acquisition Cap Rate
12/31/2024			311				84,249
Acquisitions:
Consolidated Rental Properties			8				2,064			$	533,843				5.1	%
										Sales Price				Disposition Yield
Dispositions:
Consolidated Rental Properties			(3	)			(835	)		$	(346,600	)			(5.1	%)
Consolidated Land Parcels			—				—			$	(4,300	)
Completed Developments – Consolidated			2				495
Completed Developments – Unconsolidated			1				450
Configuration Changes			—				(1	)
6/30/2025			319				86,422

Acquisitions

The consolidated properties acquired during the six months ended June 30, 2025 are located in the Atlanta market.

Dispositions

The consolidated properties disposed of during the six months ended June 30, 2025 were located in the San Diego and Seattle (2) markets; and

The consolidated land parcel disposed of during the six months ended June 30, 2025 was located in the New York market.

Developments

Consolidated:

The Company completed construction on two consolidated apartment properties during the six months ended June 30, 2025, located in the San Francisco and Denver markets, consisting of an aggregate of 495 apartment units totaling approximately $237.8 million of development costs;

The Company acquired its joint venture partner's 10% interest in a previously unconsolidated 270-unit apartment property in the Denver market for approximately $3.6 million in cash and also contributed $50.5 million for the joint venture to repay the third-party construction loan encumbering the property. The property (one of the two consolidated projects noted above) is now wholly owned; and

The Company spent approximately $59.7 million during the six months ended June 30, 2025, primarily for consolidated development projects.

Unconsolidated:

The Company completed construction on one unconsolidated apartment property during the six months ended June 30, 2025, located in the New York market, consisting of 450 apartment units totaling approximately $201.2 million of development costs; and

The Company spent approximately $56.3 million during the six months ended June 30, 2025, primarily for unconsolidated development projects.

See Notes 4 and 5 in the Notes to Consolidated Financial Statements for additional discussion regarding the Company’s real estate investments and investments in partially owned entities.

Comparison of the six months and quarter ended June 30, 2025 to the six months and quarter ended June 30, 2024

The following table presents a reconciliation of diluted earnings per share/unit for the six months and quarter ended June 30, 2025 as compared to the same periods in 2024:

		Six Months Ended June 30			Quarter Ended June 30
Diluted earnings per share/unit for period ended 2024		$	1.24		$	0.47
Property NOI			0.08			0.05
Interest expense			(0.04	)		(0.02	)
Corporate overhead (1)			(0.01	)		—
Net gain/loss on property sales			(0.04	)		0.05
Depreciation expense			(0.14	)		(0.06	)
Other			0.09			0.01
Diluted earnings per share/unit for period ended 2025		$	1.18		$	0.50

(1)

Corporate overhead includes property management and general and administrative expenses.

The Company’s primary financial measure for evaluating each of its apartment communities is net operating income (“NOI”). NOI represents rental income less direct property operating expenses (including real estate taxes and insurance). The Company believes that NOI is helpful to investors as a supplemental measure of its operating performance because it is a direct measure of the actual operating results of the Company’s apartment properties.

The following tables present reconciliations of net income per the consolidated statements of operations to NOI, along with rental income, operating expenses and NOI per the consolidated statements of operations allocated between same store and non-same store/other results (amounts in thousands):

		Six Months Ended June 30,																Quarter Ended June 30,
		2025				2024				$ Change				% Change				2025				2024				$ Change				% Change
Net income		$	463,583			$	488,587			$	(25,004	)			(5.1	)%		$	198,785			$	183,555			$	15,230				8.3	%
Adjustments:
Property management			70,602				68,969				1,633				2.4	%			34,786				33,511				1,275				3.8	%
General and administrative			36,786				34,351				2,435				7.1	%			18,531				18,631				(100	)			(0.5	)%
Depreciation			497,635				450,093				47,542				10.6	%			240,889				224,398				16,491				7.3	%
Net (gain) loss on sales of real estate properties			(212,432	)			(227,994	)			15,562				(6.8	)%			(58,280	)			(39,809	)			(18,471	)			46.4	%
Interest and other income			(3,821	)			(10,657	)			6,836				(64.1	)%			(2,129	)			(1,328	)			(801	)			60.3	%
Other expenses			8,961				45,123				(36,162	)			(80.1	)%			4,805				13,385				(8,580	)			(64.1	)%
Interest:
Expense incurred, net			147,431				133,040				14,391				10.8	%			75,317				65,828				9,489				14.4	%
Amortization of deferred financing costs			4,247				3,836				411				10.7	%			2,103				1,918				185				9.6	%
Income and other tax expense (benefit)			829				635				194				30.6	%			407				331				76				23.0	%
(Income) loss from investments in unconsolidated entities			11,407				3,372				8,035				238.3	%			4,996				1,674				3,322				198.4	%
Net (gain) loss on sales of land parcels			78				—				78				100.0	%			11				—				11				100.0	%
Total NOI		$	1,025,306			$	989,355			$	35,951				3.6	%		$	520,221			$	502,094			$	18,127				3.6	%
Rental income:
Same store		$	1,433,835			$	1,399,994			$	33,841				2.4	%		$	727,043			$	707,750			$	19,293				2.7	%
Non-same store/other			95,802				64,987				30,815				47.4	%			41,784				26,413				15,371				58.2	%
Total rental income			1,529,637				1,464,981				64,656				4.4	%			768,827				734,163				34,664				4.7	%
Operating expenses:
Same store			462,051				444,398				17,653				4.0	%			229,434				221,318				8,116				3.7	%
Non-same store/other			42,280				31,228				11,052				35.4	%			19,172				10,751				8,421				78.3	%
Total operating expenses			504,331				475,626				28,705				6.0	%			248,606				232,069				16,537				7.1	%
NOI:
Same store			971,784				955,596				16,188				1.7	%			497,609				486,432				11,177				2.3	%
Non-same store/other			53,522				33,759				19,763				58.5	%			22,612				15,662				6,950				44.4	%
Total NOI		$	1,025,306			$	989,355			$	35,951				3.6	%		$	520,221			$	502,094			$	18,127				3.6	%

See Note 12 in the Notes to Consolidated Financial Statements for our disclosure of reportable segments.

The comparison discussions provided below detail the changes in results for the six months ended June 30, 2025 as compared to the prior year period.

The increase in same store rental income is primarily driven by good demand and modest supply across most of our markets.

The increase in same store operating expenses is due primarily to:

Real estate taxes – A $4.5 million increase due to escalation in rates and assessed values including an approximately one percentage point contribution to growth from 421-a tax abatement burnoffs in New York City. Once the burnoffs are completed, previously rent-restricted apartment units will transition to market;

On-site payroll – A $2.4 million increase primarily driven by higher wages, partially offset by the impact of various innovation initiatives;

Utilities – A $5.9 million increase primarily driven by higher commodity prices, higher sewer and trash rates and higher water usage in Southern California, along with a challenging comparable period;

Repairs and maintenance - A $2.1 million increase primarily driven by costs associated with the implementation of various resident technology initiatives (including bulk Wi-Fi programs); and

Other on-site operating expenses – A $1.8 million increase primarily due to higher ground lease rent, property-related legal expenses, association fees and other expenses.

Non-same store/other NOI results consist primarily of properties acquired in calendar years 2024 and 2025, operations from the Company’s development properties, other corporate operations and operations prior to disposition from 2024 and 2025 sold properties. The increase in NOI is primarily a result of the Company's significant 2025 and second half of 2024 net acquisition activity, which is positively impacting 2025 results.

The increase in consolidated total NOI is a result of the Company’s higher NOI from non-same store properties as noted above and higher NOI from same store properties, largely due to improvement in same store revenues and the Company's continued focus on same store expense efficiency.

See the Same Store Results section below for additional discussion of those results. See the reconciliation table of net income per the consolidated statements of operations to NOI above for the dollar and percentage changes related to the comparison discussions provided below.

Property management expenses include off-site expenses associated with the self-management of the Company’s properties as well as management fees paid to any third-party management companies. The increases during the six months and quarter ended June 30, 2025 as compared to the prior year periods are primarily attributable to increases in payroll-related costs, training and marketing expenses, information technology expenses and legal and professional fees, partially offset by decreases in workforce/contractors costs.

General and administrative expenses, which include corporate operating expenses, increased during the six months ended June 30, 2025 as compared to the prior year period, primarily due to increases in payroll-related costs and other public company costs. General and administrative expenses decreased during the quarter ended June 30, 2025 compared to the prior year period, primarily due to decreases in payroll-related costs and other public company costs, partially offset by increases in workforce/contractors costs.

Depreciation expense increased during the six months and quarter ended June 30, 2025 as compared to the prior year periods, primarily as a result of additional depreciation expense on properties acquired in 2024 and 2025 and development properties placed in service during 2024 and 2025, partially offset by lower depreciation from properties sold in 2024 and 2025.

Net gain on sales of real estate properties decreased during the six months ended June 30, 2025 as compared to the prior year period, primarily as a result of a lower property volume and the mix of properties sold in 2025 vs. 2024. Net gain on sales of real estate properties increased during the quarter ended June 30, 2025 as compared to the prior year period, primarily as a result of the mix of properties sold in the periods.

Interest and other income decreased during the six months ended June 30, 2025 as compared to the prior year period, primarily due to a net decrease in realized/unrealized gains on various investment securities, lower short-term investment income on restricted deposit accounts due to a lower rate environment and lower overall invested balances and lower insurance/litigation settlement proceeds received during 2025 as compared to 2024. Interest and other income increased during the quarter ended June 30, 2025 as compared to the prior year period, primarily due to a net increase in realized/unrealized gains on various investment securities, partially offset by decreases in insurance/litigation settlement proceeds received during 2025 as compared to 2024.

Other expenses decreased during the six months and quarter ended June 30, 2025 as compared to the prior year periods, primarily due to decreases in litigation accruals and advocacy contributions.

Interest expense, including amortization of deferred financing costs, increased during the six months and quarter ended June 30, 2025 as compared to the prior year periods, primarily due to higher overall debt balances outstanding and higher overall rates. The effective interest cost on all indebtedness, excluding debt extinguishment costs/prepayment penalties, for the six months ended June 30, 2025 was 3.93% as compared to 3.89% for the prior year period, and for the quarter ended June 30, 2025 was 3.93% as compared to 3.88% for the prior year period. The Company capitalized interest of approximately $6.7 million and $6.9 million during the six months ended June 30, 2025 and 2024, respectively, and $2.8 million and $3.8 million during the quarters ended June 30, 2025 and 2024, respectively.

Loss from investments in unconsolidated entities increased during the six months and quarter ended June 30, 2025 as compared to the prior year periods, primarily as a result of losses incurred on our unconsolidated development properties which recently started lease-up activities.

Same Store Results

Properties that the Company owned and were stabilized for all of both of the six months ended June 30, 2025 and 2024, which represented 75,072 apartment units, drove the Company’s results of operations. Properties are considered “stabilized” when they have achieved 90% Physical Occupancy for three consecutive months.

The following table provides results and statistics related to our Residential same store operations for the six months ended June 30, 2025 and 2024:

June YTD 2025 vs. June YTD 2024

Same Store Residential Results/Statistics by Market

																					Increase (Decrease) from Prior Year
Markets/Metro Areas		Apartment Units				June YTD 25 % of Actual NOI				June YTD 25 Average Rental Rate				June YTD 25 Weighted Average Physical Occupancy %				June YTD 25 Turnover				Average Rental Rate				Physical Occupancy				Turnover
Los Angeles			14,136				17.6	%		$	2,962				95.7	%			19.8	%			1.2	%			0.1	%			(1.5	%)
Orange County			3,718				5.3	%			2,966				96.4	%			16.7	%			2.1	%			0.4	%			(1.5	%)
San Diego			2,209				3.5	%			3,290				96.6	%			19.8	%			1.7	%			0.5	%			0.4	%
Subtotal – Southern California			20,063				26.4	%			2,999				95.9	%			19.3	%			1.4	%			0.2	%			(1.2	%)
San Francisco			11,093				16.4	%			3,405				97.0	%			18.5	%			3.1	%			0.7	%			(2.7	%)
Washington, D.C.			13,533				16.2	%			2,822				97.1	%			17.8	%			4.4	%			0.0	%			(0.6	%)
New York			8,536				14.7	%			4,746				97.8	%			15.9	%			3.2	%			0.6	%			(0.2	%)
Boston			7,077				11.3	%			3,669				96.2	%			18.2	%			2.4	%			0.0	%			(0.6	%)
Seattle			8,458				9.9	%			2,663				96.4	%			20.8	%			3.2	%			0.2	%			(1.0	%)
Denver			2,792				2.8	%			2,350				95.7	%			24.1	%			(2.6	%)			(0.8	%)			(0.4	%)
Other Expansion Markets			3,520				2.3	%			1,886				95.1	%			24.3	%			(4.2	%)			(0.1	%)			(5.2	%)
Total			75,072				100.0	%		$	3,178				96.5	%			19.0	%			2.5	%			0.2	%			(1.3	%)

Note: The above table reflects Residential same store results only. Residential operations account for more than 96.0% of total revenues for the six months ended June 30, 2025.

During the six months ended June 30, 2025, the Company's operating business performed well, driven by good and sustained demand across most of our markets and supported by a continuing constructive job market, high employment levels and high wage growth among our target renter demographic. Competitive new supply was modest in most of our Established Markets, but continues to be elevated in our Expansion Markets. While demand has been steady, maintaining occupancy in our Expansion Markets has been challenging and has required a continued use of Leasing Concessions to attract and retain residents. On a positive note, Atlanta has shown a few months of stability, with early indications of potential improvement in market conditions.

Thus far in 2025, our best performing markets have been Washington, D.C., New York and San Francisco. Each of these markets has experienced healthy demand as evidenced by strong Physical Occupancy, healthy pricing and low Turnover. Recently, in Washington, D.C. we have seen some slowing in the market likely due to uncertainty around jobs given cuts by the government, while in San Francisco we continue to see a strong post pandemic recovery. The Seattle market also continued to improve due to large

employers’ return to office policies. While new supply in Seattle has temporarily affected rental rate growth, we expect this impact to lessen throughout the year as most of the concentrated deliveries are behind us.

Overall, the fundamentals of our business are healthy despite recent economic concerns. Long-term, we expect a positive forward set up for our business due to elevated single family home ownership costs, positive household formation trends, manageable competitive new supply in our Established Markets and moderating competitive new supply in our Expansion Markets. With an overall deficit in housing across the country, we believe our business is well positioned for the future. We also see our resident base as being more resilient to economic uncertainty, including elevated inflation, due to higher levels of disposable income and lower relative rent-to-income ratios.

Liquidity and Capital Resources

With approximately $1.7 billion in readily available liquidity, a strong balance sheet, well-staggered debt maturities, very strong credit metrics and ample access to capital markets, the Company believes it is well positioned to meet its future obligations and take advantage of opportunities. See further discussion below.

Statements of Cash Flows

The following table sets forth our sources and uses of cash flows for the six months ended June 30, 2025 and 2024 (amounts in thousands):

		June 30,
		2025				2024
Cash flows provided by (used for):
Operating activities		$	785,070			$	817,968
Investing activities		$	(518,995	)		$	(2,357	)
Financing activities		$	(294,287	)		$	(817,185	)

The following provides information regarding the Company’s cash flows from operating, investing and financing activities for the six months ended June 30, 2025.

Operating Activities

Our operating cash flows are primarily impacted by NOI and its components, such as Average Rental Rates, Physical Occupancy levels and operating expenses related to our properties. Cash provided by operating activities for the six months ended June 30, 2025 as compared to the prior year period decreased by approximately $32.9 million primarily as a result of the timing of certain real estate tax payments, partially offset by increases in NOI and other changes discussed above in Results of Operations.

Investing Activities

Our investing cash flows are primarily impacted by our transaction activity (acquisitions/dispositions), development spend and capital expenditures. For the six months ended June 30, 2025, key drivers were:

Acquired eight consolidated rental properties for approximately $534.9 million;

Disposed of three consolidated rental properties and one consolidated land parcel, receiving net proceeds of approximately $343.1 million;

Invested $59.7 million primarily in consolidated development projects;

Invested $144.4 million in capital expenditures to real estate;

Invested $62.1 million primarily in unconsolidated development joint venture entities as well as unconsolidated investments in real estate technology funds/companies for various technology initiatives; and

Acquired its joint venture partner's 10% interest in a previously unconsolidated apartment property for approximately $3.6 million in cash and also contributed $50.5 million for the joint venture to repay the third-party construction loan encumbering the property.

Financing Activities

Our financing cash flows primarily relate to our borrowing activity (debt proceeds or repayment), distributions/dividends to shareholders/unitholders and other Common Share activity. For the six months ended June 30, 2025, key drivers were:

Repaid $37.9 million on mortgage loans;

Repaid $450.0 million of 3.375% unsecured notes;

Received net proceeds of $238.5 million from our unsecured commercial paper note program;

Paid dividends/distributions on Common Shares, Preferred Shares, Units (including OP Units and restricted units) and noncontrolling interests in partially owned properties totaling approximately $540.1 million; and

Issued $500.0 million of seven-year 4.95% unsecured notes, receiving net proceeds of approximately $498.6 million before underwriting fees, hedge termination costs and other expenses.

Short-Term Liquidity and Cash Proceeds

The Company generally expects to meet its short-term liquidity requirements, including capital expenditures related to maintaining its existing properties and scheduled unsecured note and mortgage note repayments, through its working capital, net cash provided by operating activities and borrowings under the Company’s revolving credit facility and commercial paper program. Currently, the Company considers its cash provided by operating activities to be adequate to meet operating requirements and payments of distributions.

The following table presents the Company’s balances for cash and cash equivalents, restricted deposits and the available borrowing capacity on its revolving credit facility as of June 30, 2025 and December 31, 2024 (amounts in thousands):

		June 30, 2025				December 31, 2024
Cash and cash equivalents		$	31,276			$	62,302
Restricted deposits		$	100,678			$	97,864
Unsecured revolving credit facility availability		$	1,711,552			$	1,952,067

Credit Facility and Commercial Paper Program

The Company has a $2.5 billion unsecured revolving credit facility maturing October 26, 2027. The Company has the ability to increase available borrowings by an additional $750.0 million by adding lenders to the facility, obtaining the agreement of existing lenders to increase their commitments or incurring one or more term loans. The interest rate on advances under the facility will generally be the Secured Overnight Financing Rate (“SOFR”) plus a spread (currently 0.725%), or based on bids received from the lending group, and the Company pays an annual facility fee (currently 0.125%). Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating and other terms and conditions per the agreement. See Note 8 in the Notes to Consolidated Financial Statements for additional discussion of the Company’s credit facility.

The Company has an unsecured commercial paper note program under which it may borrow up to a maximum of $1.5 billion subject to market conditions. The notes will be sold under customary terms in the United States commercial paper note market and will rank pari passu with all of the Company’s other unsecured senior indebtedness.

The Company limits its utilization of the revolving credit facility in order to maintain liquidity to support its $1.5 billion commercial paper program along with certain other obligations. The following table presents the availability on the Company’s unsecured revolving credit facility as of July 31, 2025 (amounts in thousands):

		July 31, 2025
Unsecured revolving credit facility commitment		$	2,500,000
Commercial paper balance outstanding			(1,021,500	)
Unsecured revolving credit facility balance outstanding			—
Other restricted amounts			(3,448	)
Unsecured revolving credit facility availability		$	1,475,052

Dividend Policy

The Company declared a dividend/distribution for the first and second quarters of 2025 of $0.6925 per share/unit in each quarter, an annualized increase of 2.6% over the amount paid in 2024. All future dividends/distributions remain subject to the discretion of the Company’s Board of Trustees.

Total dividends/distributions paid in July 2025 amounted to $270.7 million (excluding distributions on Partially Owned Properties), which consisted of certain distributions declared during the quarter ended June 30, 2025.

Long-Term Financing and Capital Needs

The Company expects to meet its long-term liquidity requirements, such as lump sum unsecured note and mortgage debt maturities, property acquisitions and financing of development activities, through the issuance of secured and unsecured debt and equity securities (including additional OP Units), proceeds received from the disposition of certain properties and joint ventures, along with cash generated from operations after all distributions. The Company has a significant number of unencumbered properties available to secure additional mortgage borrowings should unsecured capital be unavailable or the cost of alternative sources of capital be too high. The value of and cash flow from these unencumbered properties are in excess of the requirements the Company must maintain in order to comply with covenants under its unsecured notes and line of credit. Of the $30.6 billion in investment in real estate on the Company’s balance sheet at June 30, 2025, $27.5 billion or 90.1% was unencumbered. However, there can be no assurances that these sources of capital will be available to the Company in the future on acceptable terms or otherwise. For additional details, see Item 1A, Risk Factors, of the Company’s and the Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2024.

EQR issues equity and guarantees certain debt of the Operating Partnership from time to time. EQR does not have any indebtedness as all debt is incurred by the Operating Partnership.

The Company’s total debt summary schedule as of June 30, 2025 is as follows:

Debt Summary as of June 30, 2025

($ in thousands)

		Debt Balances				% of Total
Secured		$	1,594,765				19.0	%
Unsecured			6,777,061				81.0	%
Total		$	8,371,826				100.0	%
Fixed Rate Debt:
Secured – Conventional		$	1,402,428				16.7	%
Unsecured – Public			5,994,914				71.6	%
Fixed Rate Debt			7,397,342				88.3	%
Floating Rate Debt:
Secured – Tax Exempt			192,337				2.3	%
Unsecured – Revolving Credit Facility			—				—
Unsecured – Commercial Paper Program			782,147				9.4	%
Floating Rate Debt			974,484				11.7	%
Total		$	8,371,826				100.0	%

The Company’s long-term financing and capital needs and sources have not changed materially from the information included in the Company's and the Operating Partnership's Annual Report on Form 10-K for the year ended December 31, 2024.

Critical Accounting Policies and Estimates

The Company’s and the Operating Partnership’s critical accounting policies and estimates have not changed from the information included in the Company’s and the Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2024.

Funds From Operations and Normalized Funds From Operations

The following is the Company’s and the Operating Partnership’s reconciliation of net income to FFO available to Common Shares and Units / Units and Normalized FFO available to Common Shares and Units / Units for the six months and quarters ended June 30, 2025 and 2024:

Funds From Operations and Normalized Funds From Operations

(Amounts in thousands)

		Six Months Ended June 30,								Quarter Ended June 30,
		2025				2024				2025				2024
Net income		$	463,583			$	488,587			$	198,785			$	183,555
Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties			(2,307	)			(2,039	)			(1,203	)			(1,069	)
Preferred/preference distributions			(711	)			(902	)			(355	)			(355	)
Premium on redemption of Preferred Shares/Preference Units			—				(1,444	)			—				—
Net income available to Common Shares and Units / Units			460,565				484,202				197,227				182,131
Adjustments:
Depreciation			497,635				450,093				240,889				224,398
Depreciation – Non-real estate additions			(1,834	)			(1,897	)			(884	)			(942	)
Depreciation – Partially Owned Properties			(963	)			(1,089	)			(485	)			(547	)
Depreciation – Unconsolidated Properties			8,735				1,452				4,340				1,117
Net (gain) loss on sales of unconsolidated entities - operating assets			(138	)			—				(174	)			—
Net (gain) loss on sales of real estate properties			(212,432	)			(227,994	)			(58,280	)			(39,809	)
FFO available to Common Shares and Units / Units (1) (3) (4)			751,568				704,767				382,633				366,348
Adjustments:
Write-off of pursuit costs			2,048				1,369				727				821
Debt extinguishment and preferred share/preference unit redemption (gains) losses			97				1,444				—				—
Non-operating asset (gains) losses			624				(3,216	)			186				2,890
Other miscellaneous items			4,971				40,674				3,244				10,083
Normalized FFO available to Common Shares and Units / Units (2) (3) (4)		$	759,308			$	745,038			$	386,790			$	380,142
FFO (1) (3)		$	752,279			$	707,113			$	382,988			$	366,703
Preferred/preference distributions			(711	)			(902	)			(355	)			(355	)
Premium on redemption of Preferred Shares/Preference Units			—				(1,444	)			—				—
FFO available to Common Shares and Units / Units (1) (3) (4)		$	751,568			$	704,767			$	382,633			$	366,348
Normalized FFO (2) (3)		$	760,019			$	745,940			$	387,145			$	380,497
Preferred/preference distributions			(711	)			(902	)			(355	)			(355	)
Normalized FFO available to Common Shares and Units / Units (2) (3) (4)		$	759,308			$	745,038			$	386,790			$	380,142

(1)

The National Association of Real Estate Investment Trusts (“Nareit”) defines funds from operations (“FFO”) (December 2018 White Paper) as net income (computed in accordance with accounting principles generally accepted in the United States (“GAAP”)), excluding gains or losses from sales and impairment write-downs of depreciable real estate and land when connected to the main business of a REIT, impairment write-downs of investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity and depreciation and amortization related to real estate. Adjustments for partially owned consolidated and unconsolidated partnerships and joint ventures are calculated to reflect funds from operations on the same basis.

(2)

Normalized funds from operations (“Normalized FFO”) begins with FFO and excludes:

• the impact of any expenses relating to non-operating real estate asset impairment;

• pursuit cost write-offs;

• gains and losses from early debt extinguishment and preferred share/preference unit redemptions;

• gains and losses from non-operating assets; and

• other miscellaneous items.

(3)

The Company believes that FFO and FFO available to Common Shares and Units / Units are helpful to investors as supplemental measures of the operating performance of a real estate company, because they are recognized measures of performance by the real estate industry and by excluding gains or losses from sales and impairment write-downs of depreciable real estate and excluding depreciation related to real estate (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO and FFO available to Common Shares and Units / Units can help compare the operating performance of a company’s real estate between periods or as compared to different companies. The Company also believes that Normalized FFO and Normalized FFO available to Common Shares and Units / Units are helpful to investors as supplemental measures of the operating performance of a real estate company because they allow investors to compare the Company’s operating performance to its performance in prior reporting periods and to the operating performance of other real estate companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual operating results. FFO, FFO available to Common Shares and Units / Units, Normalized FFO and Normalized FFO available to Common Shares and Units / Units do not represent net income, net income available to Common Shares / Units or net cash flows from operating activities in accordance with GAAP. Therefore, FFO, FFO available to Common Shares and Units / Units, Normalized FFO and Normalized FFO available to Common Shares and Units / Units should not be exclusively considered as alternatives to net income, net income available to Common Shares / Units or net cash flows from operating activities as determined by GAAP or as a measure of liquidity. The Company’s calculation of FFO, FFO available to Common Shares and Units / Units, Normalized FFO and Normalized FFO available to Common Shares and Units / Units may differ from other real estate companies due to, among other items, variations in cost capitalization policies for capital expenditures and, accordingly, may not be comparable to such other real estate companies.

(4)

FFO available to Common Shares and Units / Units and Normalized FFO available to Common Shares and Units / Units are calculated on a basis consistent with net income available to Common Shares / Units and reflects adjustments to net income for preferred distributions and premiums on redemption of preferred shares/preference units in accordance with GAAP. The equity positions of various individuals and entities that contributed their properties to the Operating Partnership in exchange for OP Units are collectively referred to as the “Noncontrolling Interests – Operating Partnership.” Subject to certain restrictions, the Noncontrolling Interests – Operating Partnership may exchange their OP Units for Common Shares on a one-for-one basis.