"We have spent the year focused on the basics - keeping our customers satisfied and maintaining the quality of our assets while controlling our expenses. As a result of these efforts, our third quarter performance was better than anticipated and we expect to deliver same store operating results for the year that are very much in line with our expectations at the beginning of the year," said David J. Neithercut, Equity Residential's President and CEO. "Many thanks go to our colleagues across the enterprise for delivering these results despite very tough conditions."

Third Quarter 2009

For the third quarter of 2009, the company reported earnings per share of $0.48 compared to earnings of $0.63 per share in the third quarter of 2008. The difference is primarily due to lower gains from property sales in 2009 and lower property net operating income (NOI).

FFO (Funds from Operations) for the quarter ended September 30, 2009 was $0.53 per share compared to $0.64 per share in the same period of 2008. The difference is primarily due to:

the negative impact of approximately $0.06 per share from lower NOI from the company's same store portfolio; and

the negative impact of approximately $0.05 per share from dilution from the company's 2008 and 2009 transaction activity.

Nine Months Ended September 30, 2009

For the nine months ended September 30, 2009, the company reported earnings of $1.12 per share compared to $1.59 per share in the same period of 2008.

FFO for the nine months ended September 30, 2009 was $1.69 per share compared to $1.86 per share in the same period of 2008.

Same Store Results

On a same store third quarter to third quarter comparison, which includes 119,121 apartment units, revenues decreased 3.9%, expenses decreased 0.6% and NOI decreased 5.8%. The revenue decrease was due to a 3.2% decrease in average rental rates and a 0.7% decrease in occupancy to 93.7%.

On a same store nine-month to nine-month comparison, which includes 115,832 apartment units, revenues decreased 2.3%, expenses increased 0.5% and NOI decreased 3.9%.

Acquisitions/Dispositions

During the third quarter of 2009, the company sold 24 consolidated properties, consisting of 4,620 apartment units, for an aggregate sale price of $381.1 million at an average capitalization (cap) rate of 7.7% generating an unlevered internal rate of return (IRR) of 9.5%.

During the first nine months of 2009, the company sold 47 consolidated properties, consisting of 8,819 apartment units, for an aggregate sale price of $734.5 million at an average cap rate of 7.5% generating an unlevered IRR of 9.8%.

"We continue to execute our portfolio transformation strategy, achieving good prices for non-core assets that we are selling in secondary markets and, as a result, have increased our dispositions guidance for the year to $900 million. The proceeds from these asset sales, combined with $1.36 billion of availability under our revolving credit facility and our access to the capital markets, strongly position us to take advantage of any future opportunities to add high quality properties to our portfolio," said Mr. Neithercut.

At-The-Market Share Offering Program

On September 29, 2009, the company announced the creation of an At-The-Market (ATM) share offering program which would allow the company to sell up to 17 million common shares from time to time. To date, the company has not issued any shares through this program.

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.

Full Year 2009 Guidance

The company has revised its guidance for its full year 2009 same store operating performance, funds from operations and transaction activities as well as other items listed on page 25 of this release. The changes to the full year same store and FFO guidance are listed below:

                    Previous             Revised        
 Same store:                                            
 Revenue change     (3.5%) to (3.0%)     (3.0%)         
 Expense change     1.25% to 1.75%       0.5%           
 NOI change         (6.5%) to (5.5%)     (5.0%)         
                                                        
 FFO per share      $2.10 to $2.20       $2.18 to $2.22 


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The difference between the midpoint of the range of the company's previous guidance and the midpoint of the revised range is primarily due to higher than previously expected property NOI.

Fourth Quarter 2009 Conference Call

Equity Residential expects to announce fourth quarter 2009 results on Wednesday, February 3, 2010 and host a conference call to discuss those results at 10:00 a.m. CT on Thursday, February 4, 2010.

Equity Residential is an S&P 500 company focused on the acquisition, development and management of high quality apartment properties in top U.S. growth markets. Equity Residential owns or has investments in 501 properties located in 23 states and the District of Columbia, consisting of 138,887 apartment units. For more information on Equity Residential, please visit our website at www.equityresidential.com.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential's management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, competition and local government regulation. Other risks and uncertainties are described under the heading "Risk Factors" in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityresidential.com. Many of these uncertainties and risks are difficult to predict and beyond management's control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

A live web cast of the company's conference call discussing these results and outlook for 2009 will take place tomorrow, Thursday, October 29, at 10:00 a.m. Central. Please visit the Investor Information section of the company's web site at www.equityresidential.com for the link.