Back to GetFilings.com



 

FORM 10-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Fiscal Year Ended DECEMBER 31, 2004

 

OR

 

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission File Number: 0-24920

 

ERP OPERATING LIMITED PARTNERSHIP

(Exact Name of Registrant as Specified in Its Charter)

 

Illinois

 

36-3894853

(State or Other Jurisdiction of Incorporation or Organization)

 

(I.R.S. Employer Identification No.)

 

 

 

Two North Riverside Plaza, Chicago, Illinois

 

60606

(Address of Principal Executive Offices)

 

(Zip Code)

 

 

 

(312) 474-1300

(Registrant’s Telephone Number, Including Area Code)

 

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

7.57% Notes due August 15, 2026

 

New York Stock Exchange

(Title of Class)

 

(Name of Each Exchange on Which Registered)

 

 

 

Securities registered pursuant to Section 12(g) of the Act:

 

 

 

Units of Limited Partnership Interest

(Title of Class)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   ý   No  o

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).  Yes   ý   No  o

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ý

 

 



 

DOCUMENTS INCORPORATED BY REFERENCE

 

Part III incorporates by reference certain information to be contained in Equity Residential’s definitive proxy statement, which Equity Residential anticipates will be filed no later than April 15, 2005.  Equity Residential is the general partner and 93.3% owner of ERP Operating Limited Partnership.

 

2



 

ERP OPERATING LIMITED PARTNERSHIP

 

TABLE OF CONTENTS

 

 

PART I.

 

 

 

 

 

 

Item 1.

Business

4

 

Item 2.

The Properties

17

 

Item 3.

Legal Proceedings

21

 

Item 4.

Submission of Matters to a Vote of Security Holders

21

 

 

 

PART II.

 

 

 

 

 

 

 

Item 5.

Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities

22

 

Item 6.

Selected Financial Data

22

 

Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

24

 

Item 7A.

Quantitative and Qualitative Disclosure about Market Risk

41

 

Item 8.

Financial Statements and Supplementary Data

42

 

Item 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

42

 

Item 9A.

Controls and Procedures

42

 

Item 9B.

Other Information

43

 

 

 

 

PART III.

 

 

 

 

 

 

Item 10.

Trustees and Executive Officers of the Registrant

43

 

Item 11.

Executive Compensation

43

 

Item 12.

Security Ownership of Certain Beneficial Owners and Management

43

 

Item 13.

Certain Relationships and Related Transactions

43

 

Item 14.

Principal Accountant Fees and Services

43

 

 

 

 

PART IV.

 

 

 

 

 

 

Item 15.

Exhibits and Financial Statement Schedules

44

 

3



 

Item 1.  Business

 

General

 

ERP Operating Limited Partnership (“ERPOP”), an Illinois limited partnership, was formed in May 1993 to conduct the multifamily residential property business of Equity Residential (“EQR”).  EQR is a Maryland real estate investment trust (“REIT”) formed in March 1993 and, is a fully integrated real estate company engaged in the acquisition, development, ownership, management and operation of multifamily properties.

 

EQR is one of the largest publicly traded real estate companies and is the largest publicly traded owner of multifamily properties (based on the aggregate market value of its outstanding Common Shares, the number of apartment units wholly owned and total revenues earned).  The Operating Partnership’s corporate headquarters are located in Chicago, Illinois and the Operating Partnership also leases (under operating leases) approximately thirty-five divisional, regional and area property management offices throughout the United States.

 

EQR is the general partner of, and as of December 31, 2004 owned an approximate 93.3% ownership interest in ERPOP.  EQR is structured as an umbrella partnership REIT (“UPREIT”), under which all property ownership and business operations are conducted through ERPOP and its various subsidiaries.  As used herein, the term “Operating Partnership” includes ERPOP and those entities owned or controlled by it.  As used herein, the term “Company” means EQR and the Operating Partnership.

 

As of December 31, 2004, the Operating Partnership, directly or indirectly through investments in title holding entities, owned all or a portion of 939 properties in 32 states and the District of Columbia consisting of 200,149 units.  The ownership breakdown includes:

 

 

 

Properties

 

Units

 

Wholly Owned Properties

 

842

 

176,711

 

Partially Owned Properties (Consolidated)

 

39

 

7,220

 

Unconsolidated Properties

 

58

 

16,218

 

 

 

939

 

200,149

 

 

As of March 1, 2005, the Company has approximately 6,000 employees who provide real estate operations, leasing, legal, financial, accounting, acquisition, disposition, development and other support functions.

 

Certain capitalized terms as used herein are defined in the Notes to Consolidated Financial Statements.

 

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 and any amendments to any of those reports we file with the SEC free of charge at our website, www.equityresidential.com.  These reports are made available at our website as soon as reasonably practicable after we file them with the SEC.

 

Business Objectives and Operating Strategies

 

The Operating Partnership seeks to maximize both current income and long-term growth in income, thereby increasing:

 

                  the value of the properties;

                  distributions on a per limited partnership interest (“OP Unit”) basis; and

                  partners’ value.

 

4



 

The Operating Partnership’s strategy for accomplishing these objectives include:

 

                  Leveraging our size and scale in four critical ways:

 

                  Investing or “recycling” capital investments in apartment communities located in strategically targeted markets, to maximize our total return on an enterprise level;

                  Meeting the needs of our customers by offering a wide array of product choices and a commitment to service;

                  Engaging, retaining, and attracting the best people by providing them with the education, resources and opportunities to succeed; and

                  Sharing resources, customers and best practices in property management and across the enterprise.

 

                  Owning a highly diversified portfolio by investing in target markets defined by a combination of the following criteria:

 

                  High barrier-to-entry (low supply);

                  Strong economic predictors (high demand); and

                  Attractive quality of life (high demand and retention).

 

                  Giving customers reasons to stay with Equity by providing a range of product options available in our diversified portfolio and by enhancing their experience through our employees and our services.

 

                  Being open and responsive to market realities to take advantage of investment opportunities that align with our long-term vision.

 

Acquisition and Development Strategies

 

The Operating Partnership anticipates that future property acquisitions and developments will occur within the United States.  Acquisitions and developments may be financed from various sources of capital, which may include retained cash flow, issuance of additional equity and debt securities, sales of properties, joint venture agreements and collateralized and uncollateralized borrowings.  In addition, the Operating Partnership may acquire additional properties in transactions that include the issuance of OP Units as consideration for the acquired properties. Such transactions may, in certain circumstances, enable the sellers to defer, in part, the recognition of taxable income or gain, which might otherwise result from the sales.

 

When evaluating potential acquisitions and developments, the Operating Partnership generally considers the following factors:

 

                  the geographic area and type of community;

                  the location, construction quality, condition and design of the property;

                  the current and projected cash flow of the property and the ability to increase cash flow;

                  the potential for capital appreciation of the property;

                  the terms of resident leases, including the potential for rent increases;

                  income levels and employment growth trends in the relevant market;

                  employment and household growth and net migration of the relevant market’s population;

                  the potential for economic growth and the tax and regulatory environment of the community in which the property is located;

                  the occupancy and demand by residents for properties of a similar type in the vicinity (the overall market and submarket);

                  the prospects for liquidity through sale, financing or refinancing of the property;

 

5



 

                  the benefits of integration into existing operations;

                  barriers to entry that would limit competition (zoning laws, building permit availability, supply of undeveloped or developable real estate, local building costs and construction labor costs among other factors);

                  purchase prices and yields of available existing stabilized communities, if any; and

                  competition from existing multifamily properties, residential properties under development and the potential for the construction of new multifamily properties in the area.

 

Disposition Strategies

 

When evaluating potential dispositions, the Operating Partnership generally considers the following factors:

 

                  low barrier-to-entry (high supply);

                  weak economic predictors (low demand);

                  markets where the Operating Partnership does not intend to establish long-term concentrations;

                  age or location of a particular property; and

                  opportunistic selling based on demand and price of high quality assets, including condominium conversions.

 

The Operating Partnership generally reinvests the proceeds received from property dispositions primarily to achieve its acquisition and development strategies.  In addition, when feasible, the Operating Partnership may structure these transactions as tax deferred exchanges.

 

Financing Strategies

 

The Operating Partnership’s “Consolidated Debt-to-Total Market Capitalization Ratio” as of December 31, 2004 is presented in the following table.  The Operating Partnership calculates the equity component of its market capitalization as the sum of (i) the total outstanding OP Units at the equivalent market value of the closing price of EQR’s Common Shares on the New York Stock Exchange; (ii) the “OP Unit Equivalent” of all convertible preference interests/units; and (iii) the liquidation value of all perpetual preference interests/units outstanding.

 

6



 

Capitalization as of December 31, 2004

 

 

 

 

 

 

 

 

Total Debt

 

 

 

$

6,459,806,228

 

 

 

 

 

 

 

 

OP Units

 

305,629,855

 

 

 

OP Unit Equivalents (see below)

 

1,968,453

 

 

 

Total Outstanding at year-end

 

307,598,308

 

 

 

EQR Common Share Price at December 31, 2004

 

$

36.18

 

 

 

 

 

 

 

11,128,906,783

 

Perpetual Preference Units Liquidation Value

 

 

 

615,000,000

 

Perpetual Preference Interests Liquidation Value

 

 

 

171,500,000

 

Total Market Capitalization

 

 

 

$

18,375,213,011

 

 

 

 

 

 

 

Total Debt/Total Market Capitalization

 

 

 

35

%

 

 

Convertible Preference Units, Preference Interests
and Junior Preference Units
as of December 31, 2004

 

 

 

Units

 

Conversion
Ratio

 

OP Unit
Equivalents

 

Preference Units:

 

 

 

 

 

 

 

Series E

 

811,724

 

1.1128

 

903,286

 

Series H

 

36,934

 

1.4480

 

53,480

 

Preference Interests:

 

 

 

 

 

 

 

Series H

 

190,000

 

1.5108

 

287,052

 

Series I

 

270,000

 

1.4542

 

392,634

 

Series J

 

230,000

 

1.4108

 

324,484

 

Junior Preference Units:

 

 

 

 

 

 

 

Series B

 

7,367

 

1.020408

 

7,517

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

1,968,453

 

 

The Operating Partnership’s policy is to maintain a ratio of consolidated debt-to-total market capitalization of less than 50% and that EQR shall not incur indebtedness other than short-term trade, employee compensation or similar indebtedness that will be paid in the ordinary course of business.

 

Equity Offerings For the Years Ended December 31, 2004, 2003 and 2002

 

During 2004, EQR contributed all of the net proceeds, as discussed below, to the Operating Partnership in exchange for OP Units:

 

                  EQR issued 3,350,759 Common Shares pursuant to its Share Incentive Plans and received net proceeds of approximately $79.0 million.

                  EQR issued 275,616 Common Shares pursuant to its Employee Share Purchase Plan and received net proceeds of approximately $6.9 million.

 

During 2003, EQR contributed all of the net proceeds, as discussed below, to the Operating Partnership in exchange for OP Units or preference units:

 

                  EQR issued 600,000 Series N Cumulative Redeemable Preferred Shares with a liquidation value of

 

7



 

$150.0 million and received net proceeds of approximately $145.3 million.

                  EQR issued 3,249,555 Common Shares pursuant to its Share Incentive Plans and received net proceeds of approximately $68.4 million.

                  EQR issued 289,274 Common Shares pursuant to its Employee Share Purchase Plan and received net proceeds of approximately $6.3 million.

 

During 2002, EQR contributed all of the net proceeds, as discussed below, to the Operating Partnership in exchange for OP Units:

 

                  EQR issued 1,435,115 Common Shares pursuant to its Share Incentive Plans and received net proceeds of approximately $29.6 million.

                  EQR issued 324,238 Common Shares pursuant to its Employee Share Purchase Plan and received net proceeds of approximately $7.4 million.

                  EQR issued 31,354 Common Shares pursuant to its Share Purchase – DRIP Plan and received net proceeds of approximately $0.9 million.

                  EQR issued 41,407 Common Shares pursuant to its Dividend Reinvestment – DRIP Plan and received net proceeds of approximately $1.2 million.

                  EQR repurchased 5,092,300 of its Common Shares on the open market at an average price of $22.58 per share.  The purchases were made between October 1 and October 22, 2002.  EQR paid approximately $115.0 million in connection therewith.  These shares were subsequently retired.  Concurrent with this transaction, the Operating Partnership repurchased and retired 5,092,300 OP Units previously issued to EQR.

 

In February 1998, EQR filed and the SEC declared effective a Form S-3 Registration Statement to register $1.0 billion of equity securities.  In addition, EQR carried over $272.4 million related to a prior registration statement.  As of February 2, 2005, $956.5 million in equity securities remained available for issuance under this registration statement.  Per the terms of ERPOP’s partnership agreement, EQR contributes the net proceeds of all equity offerings to the capital of the Operating Partnership in exchange for additional OP Units (on a one-for-one Common Share per OP Unit basis) or preference units (on a one-for-one preferred share per preference unit basis).

 

Cumulative through December 31, 2004, a subsidiary of ERPOP issued and has outstanding various series of Preference Interests (the “Preference Interests”) with an equity value of $206.0 million receiving net proceeds of $200.9 million.

 

Debt Offerings For the Years Ended December 31, 2004, 2003 and 2002

 

During 2004:

 

                  The Operating Partnership issued $300.0 million of five-year 4.75% redeemable unsecured fixed rate notes (the “June 2009 Notes”) in a public debt offering in June 2004.  The June 2009 Notes were issued at a discount, which is being amortized over the life of the notes on a straight-line basis.  The June 2009 Notes are due June 15, 2009 with interest payable semiannually in arrears on June 1 and December 1, commencing December 1, 2004.  The Operating Partnership received net proceeds of approximately $296.8 million in connection with this issuance.

                  The Operating Partnership issued $500.0 million of ten-year 5.25% redeemable unsecured fixed rate notes (the “September 2014 Notes”) in a public debt offering in September 2004.  The September 2014 Notes were issued at a discount, which is being amortized over the life of the notes on a straight-line basis.  The September 2014 Notes are due September 15, 2014 with interest payable semiannually in arrears on September 1 and March 1, commencing March 1, 2005.  The Operating Partnership received net proceeds of approximately $496.1 million in connection with this issuance.

                  The Operating Partnership received $100.0 million as an initial draw on a $300.0 million floating rate loan in July 2004.  The loan was paid off in full and terminated in September 2004.

 

8



 

During 2003:

 

                  The Operating Partnership issued $400.0 million of ten-year 5.20% redeemable unsecured fixed rate notes (the “April 2013 Notes”) in a public debt offering in March 2003.  The April 2013 Notes were issued at a discount, which is being amortized over the life of the notes on a straight-line basis.  The April 2013 Notes are due April 1, 2013 with interest payable semiannually in arrears on April 1 and October 1, commencing October 1, 2003.  The Operating Partnership received net proceeds of approximately $397.5 million in connection with this issuance.

 

During 2002:

 

                  The Operating Partnership issued $400.0 million of ten-year 6.625% redeemable unsecured fixed rate notes (the “March 2012 Notes”) in a public debt offering in March 2002.  The March 2012 Notes were issued at a discount, which is being amortized over the life of the notes on a straight-line basis.  The March 2012 Notes are due March 15, 2012 with interest payable semiannually in arrears on September 15 and March 15, commencing September 15, 2002.  The Operating Partnership received net proceeds of approximately $394.5 million in connection with this issuance.

                  The Operating Partnership issued $50.0 million of five-year 4.861% redeemable unsecured fixed rate notes (the “November 2007 Notes”) in a public debt offering in November 2002.  The November 2007 Notes are due November 30, 2007 with interest payable semiannually in arrears on May 30 and November 30, commencing May 30, 2003.  The Operating Partnership received net proceeds of approximately $49.9 million in connection with this issuance.

 

In June 2003, the Operating Partnership filed and the SEC declared effective a Form S-3 registration statement to register $2.0 billion of debt securities.  In addition, the Operating Partnership carried over $280.0 million related to a prior registration statement.  As of February 2, 2005, $1.48 billion in debt securities remained available for issuance under this registration statement.

 

Credit Facilities

 

In May 2002, the Operating Partnership obtained a three-year $700.0 million unsecured revolving credit facility maturing May 29, 2005.  Advances under the credit facility bear interest at variable rates based upon LIBOR at various interest periods, plus a spread dependent upon the Operating Partnership’s credit rating, or based upon bids received from the lending group.  As of December 31, 2004, $150.0 million was outstanding and $65.4 million was restricted (dedicated to support letters of credit and not available for borrowing) on the credit facility.  During the year ended December 31, 2004, the weighted average interest rate on borrowings under the line of credit was 1.73%.

 

The Operating Partnership is currently negotiating a new credit facility to replace or expand its existing facility and fully expects to obtain this at current or improved terms in March or April 2005.

 

Business Combinations

 

In January 2002, the Company sold the former Globe Business Resources, Inc. (“Globe”) furniture rental business it acquired in July 2000 for approximately $30.0 million in cash, which approximated the net book value at the sale date.  The Company has retained ownership of the former Globe short-term furnished housing business, which is now known as Equity Corporate Housing (“ECH”).

 

For the year ended December 31, 2002, the Company recorded approximately $17.1 million of asset impairment charges related to ECH.  Following the guidance in SFAS No. 142, these charges were the result of the Company’s decision to reduce the carrying value of ECH to $30.0 million, given the weakness in the economy and management’s expectations for near-term performance and were determined based upon a discounted cash flow analysis of the business.  This impairment loss is reflected on the consolidated statements of operations as impairment on corporate housing business and on the consolidated balance

 

9



 

sheets as a reduction in goodwill, net.

 

Competition

 

All of the Operating Partnership’s properties are located in developed areas that include other multifamily properties.  The number of competitive multifamily properties in a particular area could have a material effect on the Operating Partnership’s ability to lease units at the properties or at any newly acquired properties and on the rents charged.  The Operating Partnership may be competing with other entities that have greater resources than the Operating Partnership and whose managers have more experience than the Operating Partnership’s managers.  In addition, other forms of rental properties and single-family housing provide housing alternatives to potential residents of multifamily properties.   Throughout 2003 and 2004, historically low mortgage interest rates coupled with increased residential construction and single-family home sales have had an adverse competitive effect on the Operating Partnership.

 

Risk Factors

 

The following Risk Factors may contain defined terms that are different from those used in the other sections of this report.  Unless otherwise indicated, when used in this section, the terms “we” and “us” refer to ERP Operating Limited Partnership, an Illinois limited partnership and its subsidiaries.  ERP Operating Limited Partnership is controlled by its general partner, Equity Residential, a Maryland real estate investment trust.

 

Set forth below are the risks that we believe are important to investors who purchase or own our preference interests (“Interests”) of a subsidiary of ERP Operating Limited Partnership; preference units (“Units”); or units of limited partnership interest (“OP Units”) of ERP Operating Limited Partnership, which are redeemable on a one-for-one basis for common shares or their cash equivalent.  In this section, we refer to the Interests, Units and the OP Units together as our “securities,” and the investors who own Interests, Units and/or OP Units as our “security holders.”

 

Our Performance and OP Unit Value are Subject to Risks Associated with the Real Estate Industry

 

General

 

Real property investments are subject to varying degrees of risk and are relatively illiquid. Several factors may adversely affect the economic performance and value of our properties.  These factors include changes in the national, regional and local economic climate, local conditions such as an oversupply of multifamily properties or a reduction in demand for our multifamily properties, the attractiveness of our properties to residents, competition from other available multifamily property owners and changes in market rental rates.  Our performance also depends on our ability to collect rent from residents and to pay for adequate maintenance, insurance and other operating costs, including real estate taxes, which could increase over time.  Also, the expenses of owning and operating a property are not necessarily reduced when circumstances such as market factors and competition cause a reduction in income from the property.

 

We May be Unable to Renew Leases or Relet Units as Leases Expire

 

When our residents decide not to renew their leases upon expiration, we may not be able to relet their units.  Even if the residents do renew or we can relet the units, the terms of renewal or reletting may be less favorable than current lease terms.  Because virtually all of our leases are for apartments, they are generally for terms of no more than one year.  If we are unable to promptly renew the leases or relet the units, or if the rental rates upon renewal or reletting are significantly lower than expected rates, then our results of operations and financial condition will be adversely affected.  Consequently, our cash flow and ability to service debt and make distributions to security holders would be reduced.

 

10



 

New Acquisitions, Developments and/or Condominium Conversion Projects May Fail to Perform as Expected and Competition for Acquisitions May Result in Increased Prices for Properties

 

We intend to actively acquire and develop multifamily properties for rental operations and/or specifically to convert directly into condominiums as well as upgrade and sell existing properties as individual condominiums.  We may underestimate the costs necessary to bring an acquired or condominium conversion property up to standards established for its intended market position or to develop a property.  Additionally, we expect that other major real estate investors with significant capital will compete with us for attractive investment opportunities or may also develop properties in markets where we focus our development efforts.  This competition may increase prices for multifamily properties or decrease the price we expect to sell individual condominiums.  We may not be in a position or have the opportunity in the future to make suitable property acquisitions on favorable terms.   We also plan to develop more properties ourselves over the next few years in addition to co-investing with our development partners for either the rental or condominium market, depending on opportunities in each sub-market.  This may increase the overall level of risk associated with developments.  The total number of development units, cost of development and estimated completion dates are subject to uncertainties arising from changing economic conditions (such as the cost of labor and construction materials), competition and local government regulation.

 

Because Real Estate Investments Are Illiquid, We May Not Be Able To Sell Properties When Appropriate

 

Real estate investments generally cannot be sold quickly.  We may not be able to change our portfolio promptly in response to economic or other conditions.  This inability to respond promptly to changes in the performance of our investments could adversely affect our financial condition and ability to make distributions to our security holders.

 

Changes in Laws and Litigation Risk Could Affect Our Business

 

We are generally not able to pass through to our residents under existing leases real estate taxes, income taxes or other taxes.  Consequently, any such tax increases may adversely affect our financial condition and limit our ability to make distributions to our security holders.  Similarly, changes that increase our potential liability under environmental laws or our expenditures on environmental compliance would adversely affect our cash flow and ability to make distributions on our securities.

 

As the largest owner of multifamily properties, we may become involved in legal proceedings, including but not limited to, consumer, employment, tort and commercial, that if decided adversely to or settled by us, could result in liability material to our financial condition or results of operations.

 

Environmental Problems are Possible and can be Costly

 

Federal, state and local laws and regulations relating to the protection of the environment may require a current or previous owner or operator of real estate to investigate and clean up hazardous or toxic substances or petroleum product releases at such property.  The owner or operator may have to pay a governmental entity or third parties for property damage and for investigation and clean-up costs incurred by such parties in connection with the contamination. These laws typically impose clean-up responsibility and liability without regard to whether the owner or operator knew of or caused the presence of the contaminants. Even if more than one person may have been responsible for the contamination each person covered by the environmental laws may be held responsible for all of the clean-up costs incurred.  In addition, third parties may sue the owner or operator of a site for damages and costs resulting from environmental contamination emanating from that site.

 

Substantially all of our properties have been the subject of environmental assessments completed by qualified independent environmental consultant companies.  These environmental assessments have not revealed, nor are we aware of, any environmental liability that our management believes would have a material adverse effect on our business, results of operations, financial condition or liquidity.

 

Over the past four years, there have been an increasing number of lawsuits against owners and managers of multifamily properties other than EQR alleging personal injury and property damage caused by

 

11



 

the presence of mold in residential real estate.  Some of these lawsuits have resulted in substantial monetary judgments or settlements.  Insurance carriers have reacted to these liability awards by excluding mold related claims from standard policies and pricing mold endorsements at prohibitively high rates.  We have adopted programs designed to minimize the existence of mold in any of our properties as well as guidelines for promptly addressing and resolving reports of mold to minimize any impact mold might have on residents or the property.

 

We cannot be assured that existing environmental assessments of our properties reveal all environmental liabilities, that any prior owner of any of our properties did not create a material environmental condition not known to us, or that a material environmental condition does not otherwise exist as to any one or more of our properties.

 

Insurance Policy Deductibles and Exclusions

 

In order to partially mitigate the substantial increase in insurance costs in recent years, management has determined to gradually increase deductible and self-insured retention amounts.  As of December 31, 2004, the Operating Partnership’s property insurance policy (for Wholly Owned Properties) provides for a per occurrence deductible of $250,000 and self insured retention of $5.0 million per occurrence, subject to a maximum annual aggregate self insured retention of $7.5 million.  The Operating Partnership’s liability and worker’s compensation policies at December 31, 2004, provide for a $1.0 million per occurrence deductible.  These higher deductible and self-insured retention amounts do expose the Operating Partnership to greater potential uninsured losses, such as the property damage caused by Hurricanes Charley, Frances, Ivan and Jeanne, but management believes the savings in insurance premium expense justifies this increased exposure over the long-term.

 

As a result of the terrorist attacks of September 11, 2001, property insurance carriers have created exclusions for losses from terrorism from our “all risk” insurance policies.  While separate terrorism insurance coverage is available in certain instances, premiums for such coverage are generally very expensive and deductibles are very high.  Additionally, the terrorism insurance coverage that is available typically excludes coverage for losses from nuclear, biological and chemical attacks.  At the present time, the Operating Partnership has determined that it is not economically prudent to obtain property terrorism insurance for its entire portfolio to the extent otherwise available, especially given the significant risks that are not covered by such insurance.  As of December 31, 2004, the Operating Partnership’s high-rise properties were insured for $125 million in terrorism insurance coverage, with a $5 million deductible.  In the event of a terrorist attack impacting one or more of the properties, we could lose the revenues from the property, our capital investment in the property and possibly face liability claims from residents or others suffering injuries or losses.  The Operating Partnership believes, however, that the number and geographic diversity of its portfolio and its high-rise terrorism insurance coverage help to mitigate its exposure to the risks associated with potential terrorist attacks.

 

12



 

Debt Financing, Preferred Shares and Preference Interests and Units Could Adversely Affect Our Performance

 

General

 
The Operating Partnership’s total debt summary, as of December 31, 2004, included:

 

Debt Summary

 

 

 

$ Millions *

 

Weighted
Average Rate *

 

Secured

 

$

3,167

 

5.46

%

Unsecured

 

3,293

 

5.81

%

Total

 

$

6,460

 

5.63

%

 

 

 

 

 

 

Fixed Rate

 

$

5,071

 

6.45

%

Floating Rate

 

1,389

 

2.51

%

Total

 

$

6,460

 

5.63

%

 

 

 

 

 

 

Above Totals Include:

 

 

 

 

 

Tax Exempt:

 

 

 

 

 

Fixed

 

$

287

 

4.30

%

Floating

 

562

 

1.79

%

Total

 

$

849

 

2.70

%

 

 

 

 

 

 

Unsecured Revolving Credit Facility

 

$

150

 

1.73

%

 

 

 

 

 

 

 


* Net of the effect of any derivative instruments.

 

 

 

 

 

 

 

 

In addition to debt, we have $842.4 million of combined liquidation value of outstanding preference interests and units, with a weighted average dividend preference of 8.23% per annum, as of December 31, 2004.  Our use of debt and preferred equity financing creates certain risks, including the following:

 

Scheduled Debt Payments Could Adversely Affect Our Financial Condition

 

In the future, our cash flow could be insufficient to meet required payments of principal and interest or to pay distributions on our securities at expected levels.

 

We may not be able to refinance existing debt (which in virtually all cases requires substantial principal payments at maturity) and, if we can, the terms of such refinancing might not be as favorable as the terms of existing indebtedness.  If principal payments due at maturity cannot be refinanced, extended or paid with proceeds of other capital transactions, such as new equity capital, our cash flow will not be sufficient in all years to repay all maturing debt.  As a result, we may be forced to postpone capital expenditures necessary for the maintenance of our properties and may have to dispose of one or more properties on terms that would otherwise be unacceptable to us.  The Operating Partnership’s debt maturity schedule as of December 31, 2004 is as follows:

 

13



 

Debt Maturity Schedule

 

Year

 

$ Millions

 

% of Total

 

2005(1)(2)

 

$

818

 

12.7

%

2006(3)

 

492

 

7.6

%

2007

 

449

 

7.0

%

2008

 

627

 

9.7

%

2009

 

838

 

13.0

%

2010

 

232

 

3.6

%

2011

 

718

 

11.1

%

2012

 

454

 

7.0

%

2013

 

415

 

6.4

%

2014+

 

1,417

 

21.9

%

Total

 

$

6,460

 

100.0

%

 

 

 

 

 

 

 


 

(1) Includes $300 million of unsecured debt with a final maturity of 2015 that is putable/callable in 2005.

 

(2) Includes $150 million outstanding on the Operating Partnership’s unsecured revolving credit facility.

 

(3) Includes $150 million of unsecured debt with a final maturity of 2026 that is putable in 2006.

 

 

Financial Covenants Could Adversely Affect the Operating Partnership’s Financial Condition

 

If a property we own is mortgaged to secure payment of indebtedness and we are unable to meet the mortgage payments, the holder of the mortgage could foreclose on the property, resulting in loss of income and asset value.  Foreclosure on mortgaged properties or an inability to refinance existing indebtedness would likely have a negative impact on our financial condition and results of operations.

 

The mortgages on our properties may contain customary negative covenants that, among other things, limit our ability, without the prior consent of the lender, to further mortgage the property and to reduce or change insurance coverage.  In addition, our unsecured credit facilities contain certain customary restrictions, requirements and other limitations on our ability to incur indebtedness.  The indentures under which a substantial portion of our debt was issued also contain certain financial and operating covenants including, among other things, maintenance of certain financial ratios, as well as limitations on our ability to incur secured and unsecured indebtedness (including acquisition financing), and to sell all or substantially all of our assets.  Our credit facility and indentures are cross-defaulted and also contain cross default provisions with other material indebtedness.  Our unsecured public debt covenants as of December 31, 2004 and 2003, respectively, are (terms are defined in the indentures):

 

14



 

Unsecured Public Debt Covenants

 

 

 

As of
12/31/04

 

As of
12/31/03

 

Total Debt to Adjusted Total Assets (not to exceed 60%)

 

42.5

%

39.1

%

 

 

 

 

 

 

Secured Debt to Adjusted Total Assets (not to exceed 40%)

 

20.8

%

19.6

%

 

 

 

 

 

 

Consolidated Income Available For Debt Service To Maximum Annual Service Charges (must be at least 1.5 to 1)

 

2.88

 

2.90

 

 

 

 

 

 

 

Total Unsecured Assets to Unsecured Debt (must be at least 150%)

 

278.1

%

330.2

%

 

Some of the properties were financed with tax-exempt bonds that contain certain restrictive covenants or deed restrictions.  We have retained an independent outside consultant to monitor compliance with the restrictive covenants and deed restrictions that affect these properties.  If these bond compliance requirements restrict our ability to increase our rental rates to attract low or moderate-income residents, or eligible/qualified residents, then our income from these properties may be limited.

 

Our Degree of Leverage Could Limit Our Ability to Obtain Additional Financing

 

Our Consolidated Debt-to-Total Market Capitalization Ratio was 35% as of December 31, 2004.  We have a policy of incurring indebtedness for borrowed money only through the Operating Partnership and its subsidiaries and only if upon such incurrence our debt to market capitalization ratio would be approximately 50% or less.  Our degree of leverage could have important consequences to security holders.  For example, the degree of leverage could affect our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, development or other general corporate purposes, making us more vulnerable to a downturn in business or the economy in general.

 

Rising Interest Rates Could Adversely Affect Cash Flow

 

Advances under our credit facility bear interest at variable rates based upon LIBOR at various interest periods, plus a spread dependent upon the Operating Partnership’s credit rating, or based upon bids received from the lending group.  Certain public issuances of our senior unsecured debt instruments may also, from time to time, bear interest at floating rates.  We may also borrow additional money with variable interest rates in the future.  Increases in interest rates would increase our interest expenses under these debt instruments and would increase the costs of refinancing existing indebtedness and of issuing new debt.  Accordingly, higher interest rates could adversely affect cash flow and our ability to service our debt and to make distributions to security holders.

 

We Depend on Our Key Personnel

 

We depend on the efforts of the Chairman of EQR’s Board of Trustees, Samuel Zell, and EQR’s executive officers, particularly Bruce W. Duncan, EQR’s President and Chief Executive Officer and Gerald A. Spector, EQR’s Chief Operating Officer.  If they resign, our operations could be temporarily adversely affected.  Mr. Zell has entered into executive compensation and retirement benefit agreements with the Company.  Mr. Duncan and Mr. Spector have entered into Deferred Compensation Agreements with the Company that under certain conditions could provide both with a salary benefit after their respective termination of employment with the Company.  In addition, Mr. Zell and Mr. Spector have entered into Noncompetition Agreements with the Company and Mr. Duncan’s Employment Agreement contains covenants not to compete in favor of the Company.

 

In the event EQR's Chairman of the Board and/or CEO are unable to serve, (i) the Lead Trustee shall automatically be appointed to serve as the interim successor to the Chairman, (ii) the Chairman shall automatically be appointed to serve as the interim successor to the CEO and (iii) the Chair of the Compensation Committee of the Board will immediately call a meeting of the Committee to recommend to the full Board the selection of a permanent replacement for either or both positions, as necessary.

 

15



 

Control and Influence by Significant OP Unit holders Could be Exercised in a Manner Adverse to Other OP Unit holders

 

The consent of certain affiliates of Mr. Zell is required for certain amendments to ERPOP’s Fifth Amended and Restated Agreement of Limited Partnership (the “Partnership Agreement”).  As a result of their security ownership and rights concerning amendments to the Partnership Agreement, the Zell affiliates may have influence over ERPOP.  Although these OP Unit holders have not agreed to act together on any matter, they would be in a position to exercise even more influence over ERPOP’s affairs if they were to act together in the future.  This influence might be exercised in a manner that is inconsistent with the interests of other OP Unit holders.  For additional information regarding the security ownership of Mr. Zell and EQR’s executive officers and trustees, see EQR’s definitive proxy statement.

 

Our Success is Dependent on our General Partner’s Compliance With Federal Income Tax Requirements

 

We rely to a significant extent upon our general partner, EQR, as our source of equity capital.  EQR is required to satisfy numerous technical requirements to remain qualified as a REIT for federal income tax purposes.  EQR’s failure to qualify as a REIT could have a material adverse impact upon its, and consequently our, ability to raise equity capital.  Please see the “Risk Factors-Our Success as a REIT is Dependent on Compliance with Federal Income Tax Requirements” and “Federal Income Tax Consideration” sections in EQR’s Annual Report on Form 10-K for a discussion of these federal income tax considerations

 

Our General Partner’s Compliance with REIT Distribution Requirements May Affect Our Financial Condition

 

Distribution Requirements May Increase the Indebtedness of the Operating Partnership

 

We may be required from time to time, under certain circumstances, to accrue as income for tax purposes interest and rent earned but not yet received.  In such event, or upon our repayment of principal on debt, we could have taxable income without sufficient cash to enable our general partner to meet the distribution requirements of a REIT.  Accordingly, we could be required to borrow funds or liquidate investments on adverse terms in order to meet these distribution requirements.

 

16



 

Item 2.  The Properties

 

As of December 31, 2004, the Operating Partnership, directly or indirectly through investments in title holding entities, owned all or a portion of 939 properties in 32 states and the District of Columbia consisting of 200,149 units.  The Operating Partnership’s properties are more fully described as follows:

 

Type

 

Properties

 

Units

 

Average
Units

 

December 31, 2004
Occupancy

 

Garden

 

584

 

154,230

 

264

 

93.5

%

Mid/High-Rise

 

52

 

14,409

 

277

 

90.3

%

Ranch

 

302

 

27,709

 

92

 

91.6

%

Military Housing

 

1

 

3,801

 

3,801

 

95.3

%

Total

 

939

 

200,149

 

 

 

 

 

 

Resident leases are generally for twelve months in length and typically require security deposits.  The garden-style properties are generally defined as properties with two and/or three story buildings while the mid-rise/high-rise are defined as properties with greater than three story buildings.  These two property types typically provide residents with amenities, which may include a clubhouse, swimming pool, laundry facilities and cable television access. Certain of these properties offer additional amenities such as saunas, whirlpools, spas, sports courts and exercise rooms or other amenities.  The ranch-style properties are defined as single story properties, which do not provide additional amenities for residents other than laundry facilities and cable television access.  The military housing properties are defined as those properties located on military bases.

 

It is management’s role to monitor compliance with property policies and to provide preventive maintenance of the properties including common areas, facilities and amenities.  The Operating Partnership has a dedicated training and education department that creates and coordinates training and strategic implementation for the Operating Partnership’s property management personnel.  The Operating Partnership believes that, due in part to its emphasis on training and employee quality, the properties historically have had high occupancy rates.

 

The distribution of the properties throughout the United States reflects the Operating Partnership’s belief that geographic diversification helps insulate the portfolio from regional and economic influences.  At the same time, the Operating Partnership has sought to create clusters of properties within each of its primary markets in order to achieve economies of scale in management and operation.  The Operating Partnership may nevertheless acquire additional multifamily properties located anywhere in the continental United States.

 

The following tables set forth certain information by type and state relating to the Operating Partnership’s properties (includes development and condominium conversion properties) at December 31, 2004:

 

17



 

GARDEN-STYLE PROPERTIES

 

State

 

Properties

 

Units

 

Percentage of
Total Units

 

December 31, 2004
Occupancy

 

Alabama

 

4

 

800

 

0.40

%

94.0

%

Arizona

 

42

 

11,869

 

5.93

 

93.0

 

California

 

95

 

24,064

 

12.02

 

94.1

 

Colorado

 

29

 

8,433

 

4.21

 

92.6

 

Connecticut

 

22

 

2,637

 

1.32

 

93.1

 

Florida

 

69

 

20,980

 

10.48

 

94.9

 

Georgia

 

33

 

10,495

 

5.24

 

93.7

 

Illinois

 

7

 

2,360

 

1.18

 

91.3

 

Maine

 

5

 

672

 

0.34

 

91.1

 

Maryland

 

22

 

5,203

 

2.60

 

92.7

 

Massachusetts

 

35

 

4,829

 

2.41

 

93.2

 

Michigan

 

6

 

1,948

 

0.97

 

91.3

 

Minnesota

 

17

 

3,819

 

1.91

 

88.0

 

Missouri

 

6

 

1,272

 

0.64

 

89.8

 

New Hampshire

 

1

 

390

 

0.19

 

90.2

 

New Jersey

 

2

 

980

 

0.49

 

95.6

 

New Mexico

 

2

 

369

 

0.18

 

91.4

 

New York

 

1

 

300

 

0.15

 

88.3

 

North Carolina

 

29

 

7,902

 

3.95

 

94.2

 

Oklahoma

 

8

 

2,036

 

1.02

 

95.1

 

Oregon

 

10

 

3,604

 

1.80

 

93.2

 

Rhode Island

 

5

 

778

 

0.39

 

93.2

 

Tennessee

 

10

 

3,171

 

1.58

 

94.2

 

Texas

 

69

 

21,341

 

10.66

 

93.7

 

Virginia

 

11

 

3,774

 

1.89

 

93.0

 

Washington

 

41

 

9,518

 

4.76

 

94.6

 

Wisconsin

 

3

 

686

 

0.34

 

86.5

 

 

 

 

 

 

 

 

 

 

 

Total Garden-Style

 

584

 

154,230

 

77.06

%

 

 

Average Garden-Style

 

 

 

264

 

 

 

93.5

%

 

18



 

MID-RISE/HIGH RISE PROPERTIES

 

State

 

Properties

 

Units

 

Percentage of
Total Units

 

December 31, 2004
Occupancy

 

California

 

5

 

1,622

 

0.81

%

87.7

%

Colorado

 

1

 

339

 

0.17

 

90.8

 

Connecticut

 

2

 

407

 

0.20

 

92.6

 

Florida

 

3

 

653

 

0.33

 

96.2

 

Georgia

 

1

 

322

 

0.16

 

98.4

 

Illinois

 

2

 

1,176

 

0.59

 

85.3

 

Massachusetts

 

13

 

3,338

 

1.67

 

90.5

 

Minnesota

 

1

 

163

 

0.08

 

88.3

 

New Jersey

 

5

 

1,366

 

0.68

 

93.8

 

New York

 

2

 

497

 

0.25

 

98.6

 

Ohio

 

1

 

748

 

0.37

 

79.2

 

Oregon

 

1

 

525

 

0.26

 

93.1

 

Texas

 

3

 

596

 

0.30

 

92.5

 

Virginia

 

5

 

1,660

 

0.83

 

92.9

 

Washington

 

5

 

801

 

0.40

 

92.5

 

Washington, D.C

 

2

 

196

 

0.10

 

26.0

 

 

 

 

 

 

 

 

 

 

 

Total Mid-Rise/High-Rise

 

52

 

14,409

 

7.20

%

 

 

Average Mid-Rise/High-Rise

 

 

 

277

 

 

 

90.3

%

 

 

RANCH-STYLE PROPERTIES

 

Florida

 

86

 

8,112

 

4.05

%

95.1

%

Georgia

 

53

 

4,413

 

2.20

 

90.5

 

Indiana

 

40

 

3,877

 

1.94

 

91.1

 

Kentucky

 

19

 

1,533

 

0.77

 

89.3

 

Maryland

 

4

 

414

 

0.21

 

98.2

 

Michigan

 

17

 

1,536

 

0.77

 

93.4

 

Ohio

 

74

 

7,022

 

3.51

 

89.2

 

Pennsylvania

 

5

 

469

 

0.23

 

86.8

 

South Carolina

 

2

 

187

 

0.09

 

88.2

 

Tennessee

 

2

 

146

 

0.07

 

95.2

 

 

 

 

 

 

 

 

 

 

 

Total Ranch-Style

 

302

 

27,709

 

13.84

%

 

 

Average Ranch-Style

 

 

 

92

 

 

 

91.6

%

 

 

MILITARY HOUSING PROPERTIES

 

Washington (Ft. Lewis)

 

1

 

3,801

 

1.90

%

95.3

%

 

 

 

 

 

 

 

 

 

 

Total Military Housing

 

1

 

3,801

 

1.90

%

 

 

Average Military Housing

 

 

 

3,801

 

 

 

95.3

%

 

 

 

 

 

 

 

 

 

 

Total Residential Portfolio

 

939

 

200,149

 

100

%

 

 

 

19



 

The properties currently in various stages of development at December 31, 2004 are included in the following table.

 

CONSOLIDATED DEVELOPMENT PROJECTS as of December 31, 2004

(Amounts in thousands except for project and unit amounts)

 

Projects

 

Location

 

Units

 

Total
Capital
Cost (1)

 

Total Book
Value to
Date (1) (2)

 

Percentage
Completed

 

Percentage
Leased

 

Percentage
Occupied

 

Estimated
Completion
Date

 

Estimated
Stabilization
Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projects Under Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2400 M Street (Sovereign at 2400)

 

Washington, DC

 

359

 

$

111,947

 

$

63,774

 

57

%

 

 

1Q 2006

 

3Q 2007

 

Union Station

 

Los Angeles, CA

 

278

 

57,222

 

21,780

 

38

%

 

 

4Q 2005

 

4Q 2006

 

Indian Ridge

 

Waltham, MA

 

264

 

47,032

 

24,904

 

53

%

 

 

4Q 2005

 

4Q 2006

 

1111 25th Street (Sovereign House) (3)

 

Washington, DC

 

141

 

40,329

 

38,425

 

95

%

 

 

1Q 2005

 

4Q 2005

 

Bella Vista III (4)

 

Woodland Hills, CA

 

264

 

70,179

 

20,293

 

3

%

 

 

3Q 2006

 

2Q 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Projects Under Development (6)

 

 

 

1,306

 

326,709

 

169,176

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completed Not Stabilized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1210 Massachusetts Ave. (Sovereign Park)

 

Washington, DC

 

144

 

39,702

 

39,365

 

100

%

31

%

26

%

Completed

 

4Q 2005

 

Water Terrace I (Regatta I) (4) (5)

 

Marina Del Rey, CA

 

450

 

226,175

 

226,175

 

100

%

77

%

74

%

Completed

 

3Q 2005

 

Bella Vista I&II (Warner Ridge) (4)

 

Woodland Hills, CA

 

315

 

80,112

 

77,186

 

100

%

90

%

90

%

Completed

 

1Q 2005

 

City View at the Highlands (4)

 

Lombard, IL

 

403

 

65,539

 

65,279

 

100

%

74

%

74

%

Completed

 

2Q 2005

 

City Place (Westport) (4)

 

Kansas City, MO

 

288

 

33,760

 

33,760

 

100

%

73

%

72

%

Completed

 

3Q 2005

 

Marina Bay II (4)

 

Quincy, MA

 

108

 

23,480

 

23,230

 

100

%

56

%

56

%

Completed

 

3Q 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Projects Completed Not Stabilized

 

 

 

1,708

 

468,768

 

464,995

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completed And Stabilized During the Fourth Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Legacy Park Central

 

Concord, CA

 

259

 

52,337

 

51,035

 

100

%

98

%

96

%

Completed

 

4Q 2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Projects Completed And Stabilized
During the Fourth Quarter

 

259

 

52,337

 

51,035

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Projects

 

12

 

3,273

 

$

847,814

 

$

685,206

 

 

 

 

 

 

 

 

 

 

 

 


(1) Total capital cost represents estimated development cost for projects under development and all capitalized costs incurred to date plus any estimates of costs remaining to be funded for all completed projects. Total capital cost and total book value to date exclude purchase consideration paid to the development partner of $1.8 million and $1.0 million on Water Terrace I and Bella Vista I & II, respectively.

 

(2) Of the total book value to date, $516.0 million has been transferred to land and depreciable property and $169.2 million is currently reflected as construction in progress (“CIP”). The remaining $148.7 million of CIP represents land held for future development and related costs. Of the $162.6 million remaining to be invested, $107.6 million will be funded through third party construction mortgages.

 

(3) Project will be converted to condominiums.

 

(4) Projects are wholly owned. All others are partially owned.

 

(5) Project sold on January 31, 2005.

 

(6) Projects and units excluded from total Operating Partnership property and unit count.

 

20



 

Item 3.  Legal Proceedings

 

In August 2004, the Operating Partnership tried a class action lawsuit in Palm Beach County, Florida regarding certain charges made to residents who terminated their leases early or failed to provide sufficient notice of intent to vacate.  In December 2004, the Court issued a Findings of Fact and Conclusions of Law holding those fees legally uncollectible under Florida law. In recognition of the Findings of Fact and Conclusions of Law, which awarded damages and interest to the class in the amount of approximately $1.6 million, the Operating Partnership established a reserve of approximately $1.6 million and correspondingly recorded this as a general and administrative expense. Due to pending appeals, the award is neither final nor enforceable.  Accordingly, it is not possible to determine or predict the ultimate outcome of the case.  While no assurances can be given, the Operating Partnership does not believe that this lawsuit, if the ultimate outcome is unfavorable, will have a material adverse effect on the Operating Partnership.

 

The Operating Partnership does not believe there is any other litigation pending or threatened against the Operating Partnership which, individually or in the aggregate, reasonably may be expected to have a material adverse effect on the Company.

 

Item 4.  Submission of Matters to a Vote of Security Holders

 

None.

 

21



 

PART II

 

Item 5.           Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities

 

There is no established public market for the OP Units.

 

The following table sets forth, for the years indicated, the distributions paid on the Operating Partnership’s OP Units:

 

 

 

Distributions

 

 

 

2004

 

2003

 

 

 

 

 

 

 

Fourth Quarter Ended December 31,

 

$

0.4325

 

$

0.4325

 

Third Quarter Ended September 30,

 

$

0.4325

 

$

0.4325

 

Second Quarter Ended June 30,

 

$

0.4325

 

$

0.4325

 

First Quarter Ended March 31,

 

$

0.4325

 

$

0.4325

 

 

The number of holders of record of OP Units and Junior Convertible Preference Units in the Operating Partnership at February 3, 2005, were 543 and 1, respectively.  The number of outstanding OP Units and Junior Convertible Preference Units as of February 3, 2005 were 306,965,461 and 7,367 respectively.

 

Item 6.           Selected Financial Data

 

The following table sets forth selected financial and operating information on a historical basis for the Operating Partnership.  The following information should be read in conjunction with all of the financial statements and notes thereto included elsewhere in this Form 10-K.  The historical operating and balance sheet data have been derived from the historical financial statements of the Operating Partnership.  All amounts have also been restated in accordance with the discontinued operations provisions of SFAS No. 144.  Certain capitalized terms as used herein are defined in the Notes to Consolidated Financial Statements.

 

22



 

CONSOLIDATED HISTORICAL FINANCIAL INFORMATION

(Financial information in thousands except for per OP Unit and property data)

 

 

 

Year Ended December 31,

 

 

 

2004

 

2003

 

2002

 

2001

 

2000

 

OPERATING DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues from continuing operations

 

$

1,889,501

 

$

1,706,020

 

$

1,687,041

 

$

1,715,440

 

$

1,607,243

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

187,111

 

$

213,061

 

$

235,512

 

$

293,244

 

$

260,647

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

524,164

 

$

578,505

 

$

448,175

 

$

506,414

 

$

591,212

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to OP Units

 

$

449,811

 

$

461,297

 

$

351,024

 

$

394,971

 

$

479,271

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per OP Unit – basic: 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations available to OP Units

 

$

0.38

 

$

0.33

 

$

0.47

 

$

0.62

 

$

0.52

 

Net income available to OP Units

 

$

1.50

 

$

1.57

 

$

1.19

 

$

1.36

 

$

1.69

 

Weighted average OP Units outstanding

 

300,683

 

294,523

 

294,637

 

291,362

 

283,921

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per OP Unit – diluted: 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations available to OP Units

 

$

0.37

 

$

0.32

 

$

0.46

 

$

0.61

 

$

0.52

 

Net income available to OP Units

 

$

1.48

 

$

1.55

 

$

1.18

 

$

1.34

 

$

1.67

 

Weighted average OP Units outstanding

 

303,871

 

297,041

 

297,969

 

295,213

 

286,503

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions declared per OP Unit outstanding

 

$

1.73

 

$

1.73

 

$

1.73

 

$

1.68

 

$

1.575

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET DATA (at end of period):

 

 

 

 

 

 

 

 

 

 

 

Real estate, before accumulated depreciation

 

$

14,852,621

 

$

12,874,379

 

$

13,046,263

 

$

13,016,183

 

$

12,591,539

 

Real estate, after accumulated depreciation

 

$

12,252,794

 

$

10,578,366

 

$

10,934,246

 

$

11,297,338

 

$

11,239,303

 

Total assets

 

$

12,645,275

 

$

11,466,893

 

$

11,810,917

 

$

12,235,625

 

$

12,263,966

 

Total debt

 

$

6,459,806

 

$

5,360,489

 

$

5,523,699

 

$

5,742,758

 

$

5,706,152

 

Minority Interests

 

$

9,557

 

$

9,903

 

$

9,811

 

$

4,078

 

$

2,884

 

Partners’ capital

 

$

5,598,553

 

$

5,606,467

 

$

5,798,615

 

$

6,045,694

 

$

6,229,281

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER DATA:

 

 

 

 

 

 

 

 

 

 

 

Total properties (at end of period)

 

939

 

968

 

1,039

 

1,076

 

1,104

 

Total apartment units (at end of period)

 

200,149

 

207,506

 

223,591

 

224,801

 

227,704

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds from operations available to OP Units (1)(2)

 

$

651,741

 

$

640,390

 

$

719,265

 

$

706,294

 

$

719,580

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow provided by (used for):

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

$

717,750

 

$

744,319

 

$

888,263

 

$

889,668

 

$

836,417

 

Investing activities

 

$

(565,968

)

$

334,028

 

$

(48,622

)

$

57,429

 

$

(557,766

)

Financing activities

 

$

(117,856

)

$

(1,058,643

)

$

(861,369

)

$

(919,266

)

$

(283,996

)

 


(1)       The National Association of Real Estate Investment Trusts (“NAREIT”) defines funds from operations (“FFO”) (April 2002 White Paper) as net income (computed in accordance with accounting principles generally accepted in the United States (“GAAP”)), excluding gains (or losses) from sales of depreciable property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.  Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis. The April 2002 White Paper states that gain or loss on sales of property is excluded from FFO for previously depreciated operating properties only.  Once the Operating Partnership commences the conversion of units to condominiums, it simultaneously discontinues depreciation of such property.  See Item 7 for a reconciliation of net income to FFO.

 

(2)       The Operating Partnership believes that FFO is helpful to investors as a supplemental measure of the operating performance of a real estate company, because it is a recognized measure of performance by the real estate industry and by excluding gains or losses related to dispositions of depreciable property and excluding real estate depreciation (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help compare the operating performance of a company’s real estate between periods or as compared to different companies.  FFO in and of itself

 

23



 

does not represent net income or net cash flows from operating activities in accordance with GAAP.  Therefore, FFO should not be exclusively considered as an alternative to net income or to net cash flows from operating activities as determined by GAAP or as a measure of liquidity.  The Operating Partnership’s calculation of FFO 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.

 

Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

Overview

 

The following discussion and analysis of the results of operations and financial condition of the Operating Partnership should be read in connection with the Consolidated Financial Statements and Notes thereto. Due to the Operating Partnership’s ability to control its subsidiaries other than entities owning interests in the Unconsolidated Properties and certain other entities in which it has investments, each such subsidiary entity has been consolidated with the Operating Partnership for financial reporting purposes.  Capitalized terms used herein and not defined are as defined elsewhere in this Annual Report on Form 10-K for the year ended December 31, 2004.

 

Forward-looking statements in this Item 7 as well as Item 1 of this Annual Report on Form 10-K are intended to be made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  The words “believes”, “estimates”, “expects” and “anticipates” and other similar expressions that are predictions of or indicate future events and trends and which do not relate solely to historical matters identify forward-looking statements.  Such forward-looking statements are subject to risks and uncertainties, which could cause actual results, performance, or achievements of the Operating Partnership to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements.  Factors that might cause such differences include, but are not limited to, the following:

 

                  The total number of development units, cost of development and completion dates as well as anticipated capital expenditures for replacements and building improvements all reflect the Operating Partnership’s best estimates and are subject to uncertainties arising from changing economic conditions (such as the cost of labor and construction materials), competition and local government regulation;

                  Sources of capital to the Operating Partnership or labor and materials required for maintenance, repair, capital expenditure or development are more expensive than anticipated;

                  Occupancy levels and market rents may be adversely affected by national and local economic and market conditions including, without limitation, new construction of multifamily housing, slow employment growth, availability of low interest mortgages for single-family home buyers and the potential for geopolitical instability, all of which are beyond the Operating Partnership’s control; and

                  Additional factors as discussed in Part I of this Annual Report on Form 10-K, particularly those under “Risk Factors”.

 

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.  The Operating Partnership undertakes no obligation to publicly release any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.  Forward-looking statements and related uncertainties are also included in Note 5 and 11 to the Notes to Consolidated Financial Statements in this report.

 

24



 

Results of Operations

 

The following table summarizes the number of properties and related units for the periods presented:

 

 

 

Properties

 

Units

 

Purchase /
Sale Price
$ Millions

 

At December 31, 2002

 

1,039

 

223,591

 

 

 

2003 Acquisitions

 

17

 

5,200

 

$

684.1

 

2003 Dispositions:

 

 

 

 

 

 

 

Rental Properties

 

(95

)

(23,075

)

$

(1,162.6

)

Condominium Units

 

(1

)

(411

)

$

(54.8

)

Vacant Land

 

 

 

$

(0.6

)

2003 Completed Developments

 

8

 

2,112

 

 

 

2003 Unit Configuration Changes

 

 

89

 

 

 

At December 31, 2003

 

968

 

207,506

 

 

 

2004 Acquisitions:

 

 

 

 

 

 

 

Rental Properties

 

24

 

6,182

 

$

900.8

 

Vacant Land

 

 

 

$

12.4

 

2004 Dispositions:

 

 

 

 

 

 

 

Rental Properties

 

(56

)

(14,159

)

$

(787.8

)

Condominium Units

 

(2

)

(977

)

$

(177.3

)

Vacant Land

 

 

 

$

(27.9

)

2004 Completed Developments

 

5

 

1,565

 

 

 

2004 Unit Configuration Changes

 

 

32

 

 

 

At December 31, 2004

 

939

 

200,149

 

 

 

 

The Operating Partnership’s primary financial measure for evaluating each of its apartment communities is net operating income (“NOI”).  The Operating Partnership believes that NOI is helpful to investors as a supplemental measure of the operating performance of a real estate company because it is a direct measure of the actual operating results of the Operating Partnership’s apartment communities.

 

Properties that the Operating Partnership owned for all of both 2004 and 2003 (the “2004 Same Store Properties”), which represented 162,201 units, impacted the Operating Partnership’s results of operations.  Properties that the Operating Partnership owned for all of both 2003 and 2002 (the “2003 Same Store Properties”), which represented 171,841 units, also impacted the Operating Partnership’s results of operations.  Both the 2004 Same Store Properties and 2003 Same Store Properties are discussed in the following paragraphs.

 

The Operating Partnership’s acquisition, disposition, completed development and consolidation of previously unconsolidated property and variable interest entity activities also impacted overall results of operations for the years ended December 31, 2004 and 2003.  The impacts of these activities are also discussed in greater detail in the following paragraphs.

 

Comparison of the year ended December 31, 2004 to the year ended December 31, 2003

 

For the year ended December 31, 2004, income from continuing operations decreased by approximately $26.0 million when compared to the year ended December 31, 2003.  During the year ended December 31, 2004, the Operating Partnership established a reserve and recorded a corresponding expense of $15.2 million in estimated uninsured property damage at certain of its properties primarily located in Florida caused by Hurricanes Charley, Frances, Ivan and Jeanne.  Of this amount, approximately $9.4 million had been spent for hurricane related repairs through December 31, 2004.

 

25



 

Revenues from the 2004 Same Store Properties increased $14.1 million primarily as a result of lower concessions provided residents and a slight increase in occupancy rates.  Expenses from the 2004 Same Store Properties increased $22.5 million primarily due to higher payroll, utility costs and real estate taxes.  The following tables provide comparative revenue, expense, NOI and weighted average occupancy for the 2004 Same Store Properties:

 

 

2004 vs. 2003

Year over Year Same-Store Results

 

$ in Millions – 162,201 Same-Store Units

 

Description

 

Revenues

 

Expenses (1)

 

NOI

 

 

 

 

 

 

 

 

 

2004

 

 

$

1,613.5

 

$

653.5

 

$

960.0

 

2003

 

 

$

1,599.4

 

$

631.0

 

$

968.4

 

Change

 

 

$

14.1

 

$

22.5

 

$

(8.4

)

Change

 

 

0.9

%

3.6

%

(0.9

)%

 

 

 

 

 

 

 

 

 


(1)         December 2004 expenses exclude the uninsured property damage caused by Hurricanes Charley, Frances, Ivan & Jeanne.

 

 

 

Same-Store Occupancy Statistics

 

 

 

 

 

Year 2004

 

93.3

%

Year 2003

 

93.0

%

Change

 

0.3

%

 

The following table presents a reconciliation of operating income per the consolidated statements of operations to NOI for the 2004 Same Store Properties.

 

 

 

 

Year Ended December 31,

 

 

 

2004

 

2003

 

 

 

(Amounts in millions)

 

 

 

 

 

Operating income

 

$

526.7

 

$

530.3

 

Adjustments:

 

 

 

 

 

Insurance (hurricane property damage)

 

15.2

 

 

Non-same store operating results

 

(114.7

)

(10.3

)

Fee and asset management revenue

 

(11.2

)

(14.4

)

Fee and asset management expense

 

8.6

 

7.8

 

Depreciation

 

484.2

 

415.0

 

General and administrative

 

51.2

 

38.8

 

Impairment on technology investments

 

 

1.2

 

 

 

 

 

 

 

Same store NOI

 

$

960.0

 

$

968.4

 

 

For properties that the Operating Partnership acquired prior to January 1, 2004 and expects to continue to own through December 31, 2005, the Operating Partnership anticipates the following same store results for the full year ending December 31, 2005:

 

26



 

2005 Same-Store Assumptions

 

Physical Occupancy

 

 

94.0%

 

Revenue Change

 

 

2.00% to 3.25%

 

Expense Change

 

 

3.6% to 5.0%

 

NOI Change

 

 

0.0% to 3.0%

 

 

These 2005 assumptions are based on current expectations and are forward-looking.

 

Rental income from properties other than 2004 Same Store Properties increased by approximately $172.6 million primarily as a result of revenue from newly acquired properties not yet included as 2004 Same Store Properties and the consolidation of all previously unconsolidated development projects.

 

Fee and asset management revenues, net of fee and asset management expenses, decreased by $3.9 million primarily as a result of lower income earned from Ft. Lewis and managing fewer properties for third parties and unconsolidated entities.  As of December 31, 2004 and 2003, the Operating Partnership managed 17,988 units and 18,475 units, respectively, for third parties and unconsolidated entities.

 

Property management expenses include off-site expenses associated with the self-management of the Operating Partnership’s properties as well as management fees paid to any third party management companies. These expenses increased by approximately $7.8 million or 11.5%.  This increase is primarily attributable to higher payroll costs, including bonuses and long-term compensation costs as well as severance costs for certain employees.  In addition, the property management company experienced slightly higher costs for travel, temporary help, internal conferences and legal and professional fees.

 

Depreciation expense, which includes depreciation on non-real estate assets, increased $69.2 million primarily as a result of the consolidation of previously unconsolidated projects and properties acquired after December 31, 2003, many of which had significantly higher per unit acquisition costs than properties previously acquired, and also due to additional depreciation on capital expenditures for all properties owned.

 

General and administrative expenses, which include corporate operating expenses, increased approximately $12.4 million or 32.0% between the periods under comparison.  This increase was primarily due to the costs of consulting services rendered to increase operating efficiencies and increased litigation and internal control costs partially offset by $1.4 million of immediate expense recognition related to EQR options granted in the first quarter of 2003 to EQR’s former chief executive officer.  Consulting services were contracted to enhance resident satisfaction/retention, unit pricing and expense procurement/reduction.  The Operating Partnership believes that these additional expenditures may be more than offset by increased rental revenues and/or reduced operating expenses in future years.  The Operating Partnership also anticipates that general and administrative expenses will approximate $43.0 million for the year ended December 31, 2005.  The above assumptions are based on current expectations and are forward-looking.

 

The Operating Partnership recorded impairment charges on its technology investments of approximately $1.2 million for the year ended December 31, 2003.  See Note 19 in the Notes to Consolidated Financial Statements for further discussion.

 

Interest and other income decreased approximately $5.5 million, primarily as a result of lower balances available for investments including deposits in tax deferred exchange accounts and collateral agreements related to development projects.

 

Interest expense, including amortization of deferred financing costs, increased approximately $20.8 million.  This increase was primarily attributable to increases in mortgage and unsecured note balances and lower capitalized interest.  During the year ended December 31, 2004, the Operating Partnership capitalized interest costs of approximately $14.0 million as compared to $20.6 million for the year ended December 31, 2003.  This capitalization of interest primarily related to equity investments in Partially Owned Properties

 

27



 

(consolidated) engaged in development activities.  The effective interest cost on all indebtedness for the year ended December 31, 2004 was 5.87% as compared to 6.36% for the year ended December 31, 2003.

 

Loss from investments in unconsolidated entities decreased approximately $2.8 million between the periods under comparison.  This decrease is primarily the result of consolidation of properties that were previously unconsolidated, partially offset by an increase in realized losses on the settlement of derivative instruments.

 

Net gain on sales of discontinued operations increased approximately $13.2 million between the periods under comparison.  This increase is primarily the result of an increase in the number of condominium units sold.

 

Discontinued operations, net, decreased approximately $41.6 million between the periods under comparison.  See Note 13 in the Notes to Consolidated Financial Statements for further discussion.

 

Comparison of the year ended December 31, 2003 to the year ended December 31, 2002

 

For the year ended December 31, 2003, income from continuing operations decreased by approximately $22.5 million when compared to the year ended December 31, 2002.  This decrease was primarily attributable to increased operating expenses incurred including property management costs and depreciation.

 

Revenues from the 2003 Same Store Properties decreased by $38.2 million primarily as a result of lower overall physical occupancy, increased concessions and lower rental rates charged to both new and renewal residents.  Property operating expenses from the 2003 Same Store Properties increased by $36.3 million primarily due to higher payroll, maintenance, utility, real estate taxes, insurance, leasing and advertising and building costs.  The following tables provide comparative revenue, expense, NOI and weighted average occupancy for the 2003 Same Store Properties:

 

 

2003 vs. 2002

Year over Year Same-Store Results

 

$ in Millions – 171,841 Same-Store Units

 

Description

 

Revenues

 

Expenses (1)

 

NOI

 

 

 

 

 

 

 

 

 

2003

 

 

$

1,650.8

 

$

659.0

 

$

991.8

 

2002

 

 

$

1,689.0

 

$

622.7

 

$

1,066.3

 

Change

 

 

$

(38.2

)

$

36.3

 

$

(74.5

)

Change

 

 

(2.3

)%

5.8

%

(7.0

)%

 

 

Same-Store Occupancy Statistics

 

 

 

 

 

Year 2003

 

93.0

%

Year 2002

 

93.7

%

Change

 

(0.7

)%

 

 

Rental income from properties other than 2003 Same Store Properties increased by approximately $47.5 million primarily as a result of revenue from newly acquired properties not yet included as 2003 Same Store Properties and additional Partially Owned Properties consolidated in the fourth quarter of 2002 and during the year ended December 31, 2003.

 

Fee and asset management revenues, net of fee and asset management expenses, increased by $4.9 million primarily as a result of additional income allocated from Ft. Lewis.  As of December 31, 2003 and

 

28



 

2002, the Operating Partnership managed 18,475 units and 18,965 units, respectively, for third parties and unconsolidated entities.

 

Property management expenses include off-site expenses associated with the self-management of the Operating Partnership’s properties as well as management fees paid to any third party management companies.  These expenses decreased by approximately $4.4 million or 6.0%.  This decrease is primarily attributable to a reversal of a profit sharing accrual in the first quarter of 2003 related to the 2002 calendar year as the Operating Partnership didn’t achieve its stated goals and management elected not to make a discretionary contribution to the plan.  In addition, the Operating Partnership recorded lower expense in connection with granting less EQR restricted shares and reducing the expense associated with the Operating Partnership’s matched funding of its 401(k) plan during 2003 and not incurring an expense for 2003 discretionary profit sharing contributions.

 

Depreciation expense, which includes depreciation on non-real estate assets, increased $25.4 million primarily as a result of properties acquired after December 31, 2002, many of which had significantly higher per unit acquisition costs than properties previously acquired, and additional depreciation on capital expenditures for all properties owned.

 

General and administrative expenses, which include corporate operating expenses, decreased approximately $7.7 million between the periods under comparison.  This decrease was primarily due to lower expenses recorded in connection with granting less EQR restricted shares to employees during 2003, partially offset by approximately a $2.6 million increase related to EQR’s decision to begin to expense its stock based compensation in accordance with SFAS No. 123 and its amendment (SFAS No. 148).  In addition, lower state income and franchise taxes also contributed to this decrease.

 

The Operating Partnership recorded impairment charges on its technology investments and its corporate housing business of approximately $1.2 million and $18.3 million for the years ended December 31, 2003 and 2002, respectively.  See Note 19 in the Notes to Consolidated Financial Statements for further discussion.

 

Interest and other income increased by approximately $1.4 million, primarily as a result of higher cash balances available for short-term investments throughout 2003.

 

Interest expense, including amortization of deferred financing costs, decreased approximately $4.6 million primarily due to lower variable interest rates and lower overall levels of debt.  During the year ended December 31, 2003, the Operating Partnership capitalized interest costs of approximately $20.6 million as compared to $27.2 million for the year ended December 31, 2002.  This capitalization of interest primarily related to equity investments in unconsolidated entities engaged in development activities.  The effective interest cost on all indebtedness for the year ended December 31, 2003 was 6.36% as compared to 6.54% for the year ended December 31, 2002.

 

Loss from investments in unconsolidated entities increased approximately $6.4 million between the periods under comparison.  This increase is primarily the result of increased operating losses from equity investments partially offset by unrealized gains on derivative instruments.

 

Net gain on sales of discontinued operations increased approximately $206.4 million between the periods under comparison.  This increase is primarily the result of a greater number of properties sold during the year ended December 31, 2003, as well as the fact that several properties had lower net carrying values at sale.

 

Discontinued operations, net, decreased approximately $53.6 million between the periods under comparison.  See Note 13 in the Notes to Consolidated Financial Statements for further discussion.

 

29



 

Liquidity and Capital Resources

 

For the Year Ended December 31, 2004

 

As of January 1, 2004, the Operating Partnership had approximately $49.6 million of cash and cash equivalents and $633.3 million available under its line of credit (net of $56.7 million which was restricted/dedicated to support letters of credit and not available for borrowing).  After taking into effect the various transactions discussed in the following paragraphs and the net cash provided by operating activities, the Operating Partnership’s cash and cash equivalents balance at December 31, 2004 was approximately $83.5 million and the amount available on the Operating Partnership’s line of credit was $484.6 million (net of $65.4 million which was restricted/dedicated to support letters of credit and not available for borrowing).

 

During the year ended December 31, 2004, the Operating Partnership generated proceeds from various transactions, which included the following:

 

                  Disposed of fifty-eight properties (including four Unconsolidated Properties and various individual condominium units) and received net proceeds of approximately $945.6 million;

                  Issued $300.0 million of 4.75% fixed rate unsecured debt receiving net proceeds of $296.8 million;

                  Issued $500.0 million of 5.25% fixed rate unsecured debt receiving net proceeds of $496.1 million;

                  Obtained $100.0 million from an unsecured floating rate loan;

                  Obtained $467.5 million in new mortgage financing; and

                  Issued approximately 3.6 million OP Units and received net proceeds of $85.9 million.

 

During the year ended December 31, 2004, the above proceeds were primarily utilized to:

 

                  Acquire twenty-four properties including a vacant land parcel, and four additional units at two existing properties, utilizing cash of $820.0 million;

                  Repay $494.9 million of mortgage loans;

                  Repay $535.7 million of unsecured notes;

                  Redeem the Series A Preference Interests at a liquidation value of $40.0 million;

                  Invest $406.5 million primarily in previously unconsolidated development projects prior to their consolidation (inclusive of $339.7 million in mortgage debt paid off prior to consolidation); and

                  Acquire the minority interests in fifteen previously unconsolidated development properties, two vacant land parcels and four other properties for $53.4 million in cash (prior to consideration of cash acquired of $4.2 million).

 

Depending on its analysis of market prices, economic conditions, and other opportunities for the investment of available capital, the Company may repurchase up to an additional $85.0 million of its Common Shares pursuant to its existing share buyback program authorized by the Board of Trustees.  The Operating Partnership in turn would repurchase $85.0 million of its OP Units held by EQR.  EQR did not repurchase any of its Common Shares during the year ended December 31, 2004.

 

The Operating Partnership’s total debt summary and debt maturity schedule as of December 31, 2004, are as follows:

 

30



 

 

Debt Summary

 

 

 

$ Millions *

 

Weighted
Average Rate *

 

Secured

 

$

3,167

 

5.46

%

Unsecured

 

3,293

 

5.81

%

Total

 

$

6,460

 

5.63

%

 

 

 

 

 

 

Fixed Rate

 

$

5,071

 

6.45

%

Floating Rate

 

1,389

 

2.51

%

Total

 

$

6,460

 

5.63

%

 

 

 

 

 

 

Above Totals Include:

 

 

 

 

 

Tax Exempt

 

 

 

 

 

Fixed

 

$

287

 

4.30

%

Floating

 

562

 

1.79

%

Total

 

$

849

 

2.70

%

 

 

 

 

 

 

Unsecured Revolving Credit Facility

 

$

150

 

1.73

%

 

 

 

 

 

 

 


* Net of the effect of any derivative instruments.

 

 

 

 

 

 

 

 

Debt Maturity Schedule

 

Year

 

$ Millions

 

% of Total

 

2005 (1)(2)

 

$

818

 

12.7

%

2006 (3)

 

492

 

7.6

%

2007

 

449

 

7.0

%

2008

 

627

 

9.7

%

2009

 

838

 

13.0

%

2010

 

232

 

3.6

%

2011

 

718

 

11.1

%

2012

 

454

 

7.0

%

2013

 

415

 

6.4

%

2014+

 

1,417

 

21.9

%

Total

 

$

6,460

 

100.0

%

 

 

 

 

 

 

 


 

(1) Includes $300 million of unsecured debt with a final maturity of 2015 that is putable/callable in 2005.

 

 

 

(2) Includes $150 million outstanding on the Operating Partnership’s unsecured revolving credit facility.

 

 

 

(3) Includes $150 million of unsecured debt with a final maturity of 2026 that is putable in 2006.

 

 

 

In June 2003, the Operating Partnership filed and the SEC declared effective a Form S-3 registration statement to register $2.0 billion of debt securities.  In addition, the Operating Partnership carried over $280.0 million related to a prior registration statement.  As of February 2, 2005, $1.48 billion in debt securities remained available for issuance under this registration statement.

 

In February 1998, the Company filed and the SEC declared effective a Form S-3 Registration

 

31



 

Statement to register $1.0 billion of equity securities.  In addition, the Company carried over $272.4 million related to a prior registration statement.  As of February 2, 2005, $956.5 million in equity securities remained available for issuance under this registration statement.  Per the terms of ERPOP’s partnership agreement, EQR contributes the net proceeds of all equity offerings to the capital of the Operating Partnership in exchange for additional OP Units (on a one-for-one Common Share per OP Unit basis) or preference units (on a one-for-one preferred share per preference unit basis).

 

The Operating Partnership’s “Consolidated Debt-to-Total Market Capitalization Ratio” as of December 31, 2004 is presented in the following table.  The Operating Partnership calculates the equity component of its market capitalization as the sum of (i) the total outstanding OP Units at the equivalent market value of the closing price of EQR’s Common Shares on the New York Stock Exchange; (ii) the “OP Unit Equivalent” of all convertible preference interests/units; and (iii) the liquidation value of all perpetual preference interests/units outstanding.

 

Capitalization as of December 31, 2004

 

Total Debt

 

 

 

$

6,459,806,228

 

 

 

 

 

 

 

 

OP Units

 

305,629,855

 

 

 

OP Unit Equivalents (see below)

 

1,968,453

 

 

 

Total Outstanding at year-end

 

307,598,308

 

 

 

EQR Common Share Price at December 31, 2004

 

$

36.18

 

 

 

 

 

 

 

 

 

Perpetual Preference Units Liquidation Value

 

 

 

11,128,906,783

 

Perpetual Preference Interests Liquidation Value

 

 

 

615,000,000

 

Total Market Capitalization

 

 

 

171,500,000

 

 

 

 

 

$

18,375,213,011

 

Total Debt/Total Market Capitalization

 

 

 

 

 

 

 

 

 

35

%

 

 

Convertible Preference Units, Preference Interests

and Junior Preference Units

as of December 31, 2004

 

 

 

Units

 

Conversion Ratio

 

OP Unit
Equivalents

 

Preference Units:

 

 

 

 

 

 

 

Series E

 

811,724

 

1.1128

 

903,286

 

Series H

 

36,934

 

1.4480

 

53,480

 

Preference Interests:

 

 

 

 

 

 

 

Series H

 

190,000

 

1.5108

 

287,052

 

Series I

 

270,000

 

1.4542

 

392,634

 

Series J

 

230,000

 

1.4108

 

324,484

 

Junior Preference Units:

 

 

 

 

 

 

 

Series B

 

7,367

 

1.020408

 

7,517

 

Total

 

 

 

 

 

1,968,453

 

 

 

 

 

 

 

 

 

 

 

The Operating Partnership’s policy is to maintain a ratio of consolidated debt-to-total market capitalization of less than 50%.

 

From January 1, 2005 through February 7, 2005, the Operating Partnership:

 

32



 

                  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 and a vacant land parcel (excluding condominium units) 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 EQR’s 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 EQR 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 Operating Partnership received $57.1 million in cash for its ownership interest in Rent.com in connection with the acquisition of Rent.com by eBay, Inc.

 

Capitalization of Fixed Assets and Improvements to Real Estate

 

Our policy with respect to capital expenditures is generally to capitalize expenditures that improve the value of the property or extend the useful life of the component asset of the property.  We track improvements to real estate in two major categories and several subcategories:

 

             Replacements (inside the unit).  These include:

                  carpets and hardwood floors;

                  appliances;

                  mechanical equipment such as individual furnace/air units, hot water heaters, etc;

                  furniture and fixtures such as kitchen/bath cabinets, light fixtures, ceiling fans, sinks, tubs, toilets, mirrors, countertops, etc;

                  flooring such as vinyl, linoleum or tile; and

                  blinds/shades.

 

All replacements are depreciated over a five-year estimated useful life.  We expense as incurred all maintenance and turnover costs such as cleaning, interior painting of individual units and the repair of any replacement item noted above.

 

             Building improvements (outside the unit).  These include:

                  roof replacement and major repairs;

                  paving or major resurfacing of parking lots, curbs and sidewalks;

                  amenities and common areas such as pools, exterior sports and playground equipment, lobbies, clubhouses, laundry rooms, alarm and security systems and offices;

                  major building mechanical equipment systems;

                  interior and exterior structural repair and exterior painting and siding;

                  major landscaping and grounds improvement; and

                  vehicles and office and maintenance equipment.

 

All building improvements are depreciated over a five to ten-year estimated useful life.  We expense as incurred all recurring expenditures that do not improve the value of the asset or extend its useful life.

 

For the year ended December 31, 2004, our actual improvements to real estate totaled approximately $212.2 million.  This includes the following detail (amounts in thousands except for unit and per unit amounts):

 

33



 

Capitalized Improvements to Real Estate
For the Year Ended December 31, 2004

 

 

 

Total Units (1)

 

Replacements

 

Avg. Per Unit

 

Building Improvements

 

Avg. Per Unit

 

Total

 

Avg. Per Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Established Properties (2)

 

153,442

 

$

57,300

 

$

373

 

$

95,715

 

$

624

 

$

153,015

 

$

997

 

New Acquisition Properties (3)

 

21,762

 

4,026

 

229

 

10,127

 

576

 

14,153

 

805

 

Other (4)

 

8,727

 

17,868

 

 

 

27,135

 

 

 

45,003

 

 

 

Total

 

183,931

 

$

79,194

 

 

 

$

132,977

 

 

 

$

212,171

 

 

 

 


(1)          Total units exclude 16,218 unconsolidated units.

(2)          Wholly Owned Properties acquired prior to January 1, 2002.

(3)          Wholly Owned Properties acquired during 2002, 2003 and 2004.  Per unit amounts are based on a weighted average of 17,577 units.

(4)          Includes properties either Partially Owned or sold during the period, commercial space, condominium conversions and $6.6 million included in building improvements spent on fifteen specific assets related to major renovations and repositioning of these assets.

 

For the year ended December 31, 2003, our actual improvements to real estate totaled approximately $181.9 million.  This includes the following detail (amounts in thousands except for unit and per unit amounts):

 

Capitalized Improvements to Real Estate

For the Year Ended December 31, 2003

 

 

 

Total Units (1)

 

Replacements

 

Avg. Per Unit

 

Building Improvements

 

Avg. Per Unit

 

Total

 

Avg. Per Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Established Properties (2)

 

162,477

 

$

57,931

 

$

356

 

$

77,607

 

$

478

 

$

135,538

 

$

834

 

New Acquisition Properties (3)

 

14,457

 

2,653

 

252

 

5,250

 

498

 

7,903

 

750

 

Other (4)

 

7,994

 

13,417

 

 

 

25,090

 

 

 

38,507

 

 

 

Total

 

184,928

 

$

74,001

 

 

 

$

107,947

 

 

 

$

181,948

 

 

 

 


(1)          Total units exclude 22,578 unconsolidated units.

(2)          Wholly Owned Properties acquired prior to January 1, 2001.

(3)          Wholly Owned Properties acquired during 2001, 2002 and 2003.  Per unit amounts are based on a weighted average of 10,533 units.

(4)          Includes properties either Partially Owned or sold during the period, commercial space, condominium conversions and $6.5 million included in building improvements spent on seven specific assets related to major renovations and repositioning of these assets.

 

The Operating Partnership expects to fund approximately $160.0 million for capital expenditures for replacements and building improvements for all consolidated properties, exclusive of condominium conversion properties, in 2005.

 

During the year ended December 31, 2004, the Operating Partnership’s total non-real estate capital additions, such as computer software, computer equipment, and furniture and fixtures and leasehold improvements to the Operating Partnership’s property management offices and its corporate offices, was approximately $6.6 million.  The Operating Partnership expects to fund approximately $12.8 million in total

 

34



 

additions to non-real estate property in 2005.

 

Improvements to real estate and additions to non-real estate property were funded from net cash provided by operating activities.

 

Derivative Instruments

 

In the normal course of business, the Operating Partnership is exposed to the effect of interest rate changes.  The Operating Partnership limits these risks by following established risk management policies and procedures including the use of derivatives to hedge interest rate risk on debt instruments.

 

The Operating Partnership has a policy of only entering into contracts with major financial institutions based upon their credit ratings and other factors.  When viewed in conjunction with the underlying and offsetting exposure that the derivatives are designed to hedge, the Operating Partnership has not sustained a material loss from those instruments nor does it anticipate any material adverse effect on its net income or financial position in the future from the use of derivatives.

 

See Note 11 in the Notes to Consolidated Financial Statements for additional discussion of derivative instruments at December 31, 2004.

 

Other

 

Total distributions paid in January 2005 amounted to $144.1 million (excluding distributions on Partially Owned Properties), which included certain distributions declared during the fourth quarter ended December 31, 2004.

 

The Operating Partnership expects to meet its short-term liquidity requirements, including capital expenditures related to maintaining its existing properties and certain scheduled unsecured note and mortgage note repayments, generally through its working capital, net cash provided by operating activities and borrowings under its line of credit.  The Operating Partnership considers its cash provided by operating activities to be adequate to meet operating requirements and payments of distributions.  The Operating Partnership also expects to meet its long-term liquidity requirements, such as scheduled unsecured note and mortgage debt maturities, property acquisitions, financing of construction and development activities and capital improvements through the issuance of unsecured notes and equity securities, including additional OP Units, and proceeds received from the disposition of certain properties.  In addition, the Operating Partnership has significant unencumbered properties available to secure additional mortgage borrowings in the event that the public capital markets are unavailable or the cost of alternative sources of capital is too high.  The fair value of and cash flow from these unencumbered properties are in excess of the requirements the Operating Partnership must maintain in order to comply with covenants under its unsecured notes and line of credit.  Of the $14.9 billion in investment in real estate on the Operating Partnership’s balance sheet at December 31, 2004, $9.5 billion or 63.8%, was unencumbered.

 

The Operating Partnership has a revolving credit facility with potential borrowings of up to $700.0 million.    This facility matures in May 2005 and may, among other potential uses, be used to fund property acquisitions, costs for certain properties under development and short term liquidity requirements.  As of March 1, 2005, $135.0 million was outstanding under this facility (and $51.0 million was restricted and dedicated to support letters of credit).

 

The Operating Partnership is currently negotiating a new credit facility to replace or expand its existing facility and fully expects to obtain this at current or improved terms in March or April 2005.

 

Off-Balance Sheet Arrangements and Contractual Obligations

 

The Operating Partnership has co-invested in various properties that are unconsolidated and accounted

 

35



 

for under the equity method of accounting.  Management does not believe these investments have a materially different impact upon the Operating Partnership’s liquidity, capital resources, credit or market risk than its property management and ownership activities.  The nature and business purpose of these ventures are as follows:

 

                              Institutional Ventures – During 2000 and 2001, the Operating Partnership entered into ventures with an unaffiliated partner.  At the respective closing dates, the Operating Partnership sold and/or contributed 45 properties containing 10,846 units to these ventures and retained a 25% ownership interest in the ventures.  The Operating Partnership’s joint venture partner contributed cash equal to 75% of the agreed-upon equity value of the properties comprising the ventures, which was then distributed to the Operating Partnership. The Operating Partnership’s strategy with respect to these ventures was to reduce its concentration of properties in a variety of markets.

 

                              Lexford/Other – As of December 31, 2004, the Operating Partnership has ownership interests in twelve properties containing 1,571 units acquired in a prior merger.  The current weighted average ownership percentage is 11.0%.  The Operating Partnership’s strategy with respect to these interests is either to acquire a majority ownership or sell the Operating Partnership’s interest.

 

As of December 31, 2004, the Operating Partnership has five projects totaling 1,306 units in various stages of development with estimated completion dates ranging through September 30, 2006.  The three development agreements currently in place have the following key terms:

 

                        The first development partner has the right, at any time following completion of a project subject to the agreement, to stipulate a value for such project and offer to sell its interest in the project to the Operating Partnership based on such value.  If the Operating Partnership chooses not to purchase the interest, the Operating Partnership must agree to a sale of the project to an unrelated third party at such value.  The Operating Partnership’s partner must exercise this right as to all projects subject to the agreement within five years after the receipt of the final certificate of occupancy on the last developed property. In connection with this development partner, the Operating Partnership has an obligation to provide up to $40.0 million in credit enhancements to guarantee a portion of the third party construction financing.  As of February 2, 2005, the Operating Partnership had set-aside $5.0 million towards this credit enhancement.  The Operating Partnership would be required to perform under this agreement only if there was a material default under a third party construction mortgage agreement.  This agreement expires no later than December 31, 2018.  Notwithstanding the termination of the agreement, the Operating Partnership shall have recourse against its development partner for any losses incurred.

 

                        The second development partner has the right, at any time following completion of a project subject to the agreement, to require the Operating Partnership to purchase the partners’ interest in that project at a mutually agreeable price.  If the Operating Partnership and the partner are unable to agree on a price, both parties will obtain appraisals.  If the appraised values vary by more than 10%, both the Operating Partnership and its partner will agree on a third appraiser to determine which original appraisal is closest to its determination of value.  The Operating Partnership may elect at that time not to purchase the property and instead, authorize its partner to sell the project at or above the agreed-upon value to an unrelated third party.  Five years following the receipt of the final certificate of occupancy on the last developed property, the Operating Partnership must purchase, at the agreed-upon price, any projects remaining unsold.

 

                        The third development partner has the exclusive right for six months following stabilization, as defined, to market a subject project for sale.  Thereafter, either the Operating Partnership or its development partner may market a subject project for sale. If the Operating Partnership’s development partner proposes the sale, the Operating Partnership may elect to purchase the project at the price proposed by its partner or defer the sale until two independent appraisers appraise the project.  If the two appraised values vary by more than 5%, a third appraiser will be chosen to determine the fair

 

36



 

market value of the property.  Once a value has been determined, the Operating Partnership may elect to purchase the property or authorize its development partner to sell the project at the agreed-upon value.

 

See Note 6 in the Notes to Consolidated Financial Statements for additional discussion regarding the Operating Partnership’s investments in unconsolidated entities.

 

In connection with one of its mergers, the Operating Partnership provided a guaranty of a credit enhancement agreement with respect to certain tax-exempt bonds issued to finance certain public improvements at a multifamily development project.  The Operating Partnership has the obligation to provide this guaranty for a period of eight years from the consummation of the merger or through May 2005.  The Operating Partnership would be required to perform under this guaranty only if there was a draw on the letter of credit issued by the credit enhancement party.  The counterparty has also indemnified the Operating Partnership for any losses suffered.  As of February 2, 2005, this guaranty was still in effect at a commitment amount of $10.4 million and no current outstanding liability.

 

The following table summarizes the Operating Partnership’s contractual obligations for the next five years and thereafter as of December 31, 2004:

 

Payments Due by Year (in thousands)

 

Contractual Obligations

 

2005

 

2006

 

2007

 

2008

 

2009

 

Thereafter

 

Total

 

Debt (a)

 

$

817,897

 

$

491,617

 

$

449,090

 

$

626,939

 

$

838,015

 

$

3,236,248

 

$

6,459,806

 

Operating Leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minimum Rent Payments (b)

 

4,816

 

4,205

 

3,464

 

3,335

 

3,233

 

7,369

 

26,422

 

Other Long-Term Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred Compensation (c)

 

813

 

1,807

 

2,211

 

2,211

 

2,211

 

11,230

 

20,483

 

Other (d)

 

1,000

 

 

 

 

 

 

1,000

 

Total

 

$

824,526

 

$

497,629

 

$

454,765

 

$

632,485

 

$

843,459

 

$

3,254,847

 

$

6,507,711

 

 


(a)          Amounts include aggregate principal payments only.  The Operating Partnership paid $348,574, $352,391 and $365,782 for interest on debt, inclusive of derivative instruments, for the years ended December 31, 2004, 2003 and 2002, respectively.

(b)         Minimum basic rent due for various office space the Operating Partnership leases and fixed base rent due on a ground lease for one property.

(c)          Estimated payments to EQR’s Chairman, former CEO and two other executive officers based on planned retirement dates.

(d)         Promissory note due on one property, repaid in January 2005.

 

Critical Accounting Policies and Estimates

 

The Operating Partnership’s significant accounting policies are described in Note 2 in the Notes to Consolidated Financial Statements.  These policies were followed in preparing the consolidated financial statements at and for the year ended December 31, 2004.

 

The Operating Partnership has identified six significant accounting policies as critical accounting policies.  These critical accounting policies are those that have the most impact on the reporting of our financial condition and those requiring significant judgments and estimates.  With respect to these critical accounting policies, management believes that the application of judgments and assessments is consistently applied and produces financial information that fairly presents the results of operations for all periods presented.  The six critical accounting policies are:

 

37



 

Impairment of Long-Lived Assets, Including Goodwill

 

The Operating Partnership periodically evaluates its long-lived assets, including its investments in real estate and goodwill, for indicators of permanent impairment.  The judgments regarding the existence of impairment indicators are based on factors such as operational performance, market conditions, expected holding period of each asset and legal and environmental concerns.  Future events could occur which would cause the Operating Partnership to conclude that impairment indicators exist and an impairment loss is warranted.

 

Depreciation of Investment in Real Estate

 

The Operating Partnership depreciates the building component of its investment in real estate over a 30-year estimated useful life, building improvements over a 5-year to 10-year estimated useful life and both the furniture, fixtures and equipment and replacements components over a 5-year estimated useful life, all of which are judgmental determinations.

 

Cost Capitalization

 

See the Capitalization of Fixed Assets and Improvements to Real Estate section for discussion of the policy with respect to capitalization vs. expensing of fixed asset/repair and maintenance costs.  In addition, the Operating Partnership capitalizes the payroll and associated costs of employees directly responsible for and who spend all of their time on the supervision of major capital and/or renovation projects.  These costs are reflected on the balance sheet as an increase to depreciable property.

 

The Operating Partnership follows the guidance in SFAS No. 67, Accounting for Costs and Initial Rental Operations of Real Estate Projects, for all development projects and uses its professional judgment in determining whether such costs meet the criteria for capitalization or must be expensed as incurred.  The Operating Partnership capitalizes, through the date the certificates of occupancy (“CO”) are issued (CO’s are deemed final within 90 days of issuance), interest, real estate taxes and insurance and payroll and associated costs for those individuals directly responsible for and who spend all of their time on development activities.  These costs are reflected on the balance sheet as construction in progress for each specific property.  The Operating Partnership expenses as incurred all payroll costs of on-site employees working directly at our properties, except as noted above on our development properties prior to certificate of occupancy issuance and on specific major renovation at selected properties when additional incremental employees are hired.

 

Fair Value of Financial Instruments, Including Derivative Instruments

 

The valuation of financial instruments under SFAS No. 107 and SFAS No. 133 and its amendments (SFAS Nos. 137/138/149) requires the Operating Partnership to make estimates and judgments that affect the fair value of the instruments.  The Operating Partnership, where possible, bases the fair values of its financial instruments, including its derivative instruments, on listed market prices and third party quotes. Where these are not available, the Operating Partnership bases its estimates on other factors relevant to the financial instruments.

 

Revenue Recognition

 

Rental income attributable to leases is recorded when due from residents and is recognized monthly as it is earned, which is not materially different than on a straight-line basis.  Leases entered into between a resident and a property for the rental of an apartment unit are generally year-to-year, renewable upon consent of both parties on an annual or monthly basis.  Fee and asset management revenue and interest income are recorded on an accrual basis.

 

Stock-Based Compensation

 

Prior to 2003, the Company had chosen to account for its stock-based compensation in accordance

 

38



 

with APB No. 25, Accounting for Stock Issued to Employees, which resulted in no compensation expense for options issued with an exercise price equal to or exceeding the market value of the Company’s Common Shares on the date of grant (intrinsic method).  The Company elected to account for its stock-based compensation in accordance with SFAS No. 123 and its amendment (SFAS No. 148), Accounting for Stock Based Compensation, effective in the first quarter of 2003, which resulted in compensation expense being recorded based on the fair value of the stock compensation granted.

 

SFAS No. 148 provides three transition methods for entities that adopt the fair value recognition provisions of SFAS No. 123.  The Company elected the “Prospective Method” which requires expensing of employee awards granted or modified after January 1, 2003.  Compensation expense under all of the Company’s plans is generally recognized over periods ranging from three months to five years.  See Note 2 in the Notes to Consolidated Financial Statements for further discussion and comparative information regarding application of the fair value method to all outstanding employee awards.

 

Any Common Shares issued pursuant to EQR’s incentive equity compensation and employee share purchase plans will result in the Operating Partnership issuing OP Units to EQR on a one-for-one basis, with the Operating Partnership receiving the net cash proceeds of such issuances.

 

Funds From Operations

 

For the year ended December 31, 2004, Funds From Operations (“FFO”) available to OP Units increased $11.4 million, or 1.8%, as compared to the year ended December 31, 2003. For the year ended December 31, 2003, FFO available to OP Units decreased $78.9 million, or 11.0%, as compared to the year ended December 31, 2002.

 

The following is a reconciliation of net income to FFO available to OP Units for the years ended December 31, 2004, 2003 and 2002:

 

39



 

Funds From Operations

(Amounts in thousands)

 

 

 

Year Ended December 31,

 

 

 

2004

 

2003

 

2002

 

Net income

 

$

524,164

 

$

578,505

 

$

448,175

 

Adjustments:

 

 

 

 

 

 

 

Depreciation

 

484,209

 

414,998

 

389,580

 

Depreciation – Non-real estate additions

 

(5,574

)

(7,019

)

(9,213

)

Depreciation – Partially Owned Properties

 

(8,256

)

(8,390

)

(7,706

)

Depreciation – Unconsolidated Properties

 

10,159

 

28,301

 

19,872

 

Net (gain) on sales of unconsolidated entities

 

(4,593

)

(4,942

)

(5,054

)

Discontinued Operations:

 

 

 

 

 

 

 

Depreciation

 

12,374

 

56,571

 

83,376

 

Net (gain) on sales of discontinued operations

 

(323,925

)

(310,706

)

(104,296

)

Net incremental gain on sales of condominium units

 

32,054

 

10,280

 

1,682

 

Net gain on sales of vacant land

 

5,482

 

 

 

 

 

 

 

 

 

 

 

FFO (1)(2)

 

726,094

 

757,598

 

816,416

 

Preferred distributions

 

(73,236

)

(96,971

)

(97,151

)

Premium on redemption of preference units/interests

 

(1,117

)

(20,237

)

 

 

 

 

 

 

 

 

 

FFO available to OP Units

 

$

651,741

 

$

640,390

 

$

719,265

 

 


(1)  The National Association of Real Estate Investment Trusts (“NAREIT”) defines funds from operations (“FFO”) (April 2002 White Paper) as net income (computed in accordance with accounting principles generally accepted in the United States (GAAP)), excluding gains (or losses) from sales of depreciable property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.  Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis.  The April 2002 White Paper states that gain or loss on sales of property is excluded from FFO for previously depreciated operating properties only.  Once the Operating Partnership commences the conversion of units to condominiums, it simultaneously discontinues depreciation of such property.

 

(2)  The Operating Partnership believes that FFO is helpful to investors as a supplemental measure of the operating performance of a real estate company, because it is a recognized measure of performance by the real estate industry and by excluding gains or losses related to dispositions of depreciable property and excluding real estate depreciation (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help compare the operating performance of a company’s real estate between periods or as compared to different companies.  FFO in and of itself does not represent net income or net cash flows from operating activities in accordance with GAAP.  Therefore, FFO should not be exclusively considered as an alternative to net income or to net cash flows from operating activities as determined by GAAP or as a measure of liquidity.  The Operating Partnership’s calculation of FFO 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.

 

40



 

Item 7A.  Quantitative and Qualitative Disclosure about Market Risk

 

Market risks relating to the Operating Partnership’s operations result primarily from changes in short-term LIBOR interest rates.  The Operating Partnership does not have any direct foreign exchange or other significant market risk.

 

The Operating Partnership’s exposure to market risk for changes in interest rates relates primarily to the unsecured line of credit.  The Operating Partnership typically incurs fixed rate debt obligations to finance acquisitions and capital expenditures, while it typically incurs floating rate debt obligations to finance working capital needs and as a temporary measure in advance of securing long-term fixed rate financing.  The Operating Partnership continuously evaluates its level of floating rate debt with respect to total debt and other factors, including its assessment of the current and future economic environment.

 

The Operating Partnership also utilizes certain derivative financial instruments to limit market risk.  Interest rate protection agreements are used to convert floating rate debt to a fixed rate basis or vice versa.  Derivatives are used for hedging purposes rather than speculation.  The Operating Partnership does not enter into financial instruments for trading purposes.   See also Note 11 to the Notes to Consolidated Financial Statements for additional discussion of derivative instruments.

 

The fair values of the Operating Partnership’s financial instruments (including such items in the financial statement captions as cash and cash equivalents, other assets, line of credit, accounts payable and accrued expenses, rents received in advance and other liabilities) approximate their carrying or contract values based on their nature, terms and interest rates that approximate current market rates.  The fair value of the Operating Partnership’s mortgage notes payable and unsecured notes approximates their carrying value at December 31, 2004.

 

The Operating Partnership had total outstanding floating rate debt of approximately $1,389.0 million, or 21.5% of total debt at December 31, 2004, net of the effects of any derivative instruments.  If market rates of interest on all of the floating rate debt permanently increased by 25 basis points (a 10% increase from the Operating Partnership’s existing weighted average interest rates), the increase in interest expense on the floating rate debt would decrease future earnings and cash flows by approximately $3.5 million.  If market rates of interest on all of the floating rate debt permanently decreased by 25 basis points (a 10% decrease from the Operating Partnership’s existing weighted average interest rates), the decrease in interest expense on the floating rate debt would increase future earnings and cash flows by approximately $3.5 million.

 

At December 31, 2004, the Operating Partnership had total outstanding fixed rate debt of approximately $5.1 billion, net of the effects of any derivative instruments.  If market rates of interest permanently increased by 65 basis points (a 10% increase from the Operating Partnership’s existing weighted average interest rates), the estimated fair value of the Operating Partnership’s fixed rate debt would be approximately $4.6 billion.  If market rates of interest permanently decreased by 65 basis points (a 10% decrease from the Operating Partnership’s existing weighted average interest rates), the estimated fair value of the Operating Partnership’s fixed rate debt would be approximately $5.6 billion.

 

At December 31, 2004, the Operating Partnership’s derivative instruments had a net liability fair value of approximately $7.9 million.  If market rates of interest permanently increased by 40 basis points (a 10% increase from the Operating Partnership’s existing weighted average interest rates), the net liability fair value of the Operating Partnership’s derivative instruments would be approximately $13.9 million.  If market rates of interest permanently decreased by 40 basis points (a 10% decrease from the Operating Partnership’s existing weighted average interest rates), the net liability fair value of the Operating Partnership’s derivative instruments would be approximately $2.2 million.

 

These amounts were determined by considering the impact of hypothetical interest rates on the Operating Partnership’s financial instruments.  The foregoing assumptions apply to the entire amount of the Operating Partnership’s debt and derivative instruments and do not differentiate among maturities.  These

 

41



 

analyses do not consider the effects of the changes in overall economic activity that could exist in such an environment.  Further, in the event of changes of such magnitude, management would likely take actions to further mitigate its exposure to the changes.  However, due to the uncertainty of the specific actions that would be taken and their possible effects, this analysis assumes no changes in the Operating Partnership’s financial structure or results.

 

The Operating Partnership cannot predict the effect of adverse changes in interest rates on its debt and derivative instruments and, therefore, its exposure to market risk, nor can there be any assurance that long term debt will be available at advantageous pricing.  Consequently, future results may differ materially from the estimated adverse changes discussed above.

 

Item 8.  Financial Statements and Supplementary Data

 

See Index to Consolidated Financial Statements on page F-1 of this Form 10-K.

 

Item 9.  Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 

None.

 

Item 9A.   Controls and Procedures

 

(a)          Evaluation of Disclosure Controls and Procedures:

Effective as of December 31, 2004, the Operating Partnership carried out an evaluation, under the supervision and with the participation of the Operating Partnership’s management, including the Chief Executive Officer and Chief Financial Officer of EQR, of the effectiveness of the Operating Partnership’s disclosure controls and procedures pursuant to Exchange Act Rules 13a-15 and 15d-15.  Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures are effective in timely alerting them to material information.  During the fiscal year ended December 31, 2004, there were no changes to the internal controls over financial reporting of the Operating Partnership identified in connection with the Operating Partnership’s evaluation or otherwise that has materially affected, or is reasonably likely to materially affect, the Operating Partnership’s internal controls over financial reporting.

 

(b)          Management’s Report on Internal Control over Financial Reporting:

ERP Operating Limited Partnership’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) under the Securities Exchange Act of 1934.  Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer of the Operating Partnership’s general partner, management conducted an evaluation of the effectiveness of internal control over financial reporting based on the framework in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.

 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Therefore, even those systems determined to be effective can only provide reasonable assurance with respect to financial statement preparation and presentation.

 

Based on the Operating Partnership’s evaluation under the framework in Internal Control – Integrated Framework, management concluded that its internal control over financial reporting was effective as of December 31, 2004.  Management’s assessment of the effectiveness of internal control over financial reporting as of December 31, 2004 has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report which is included herein at Item 8, page F-3.

 

42



 

Item 9B.                    Other Information

 

None.

 

PART III

 

Items 10, 11, 12, 13 and 14.

 

Trustees and Executive Officers of the Registrant, Executive Compensation, Security Ownership of Certain Beneficial Owners and Management, Certain Relationships and Related Transactions and Principal Accountant Fees and Services.

 

The information required by Item 10, Item 11, Item 12, Item 13 and Item 14 is incorporated by reference to, and will be contained in, EQR’s definitive proxy statement, which EQR anticipates will be filed no later than April 15, 2005.  EQR is the general partner of and owns an approximate 93.3% ownership interest in ERPOP.

 

43



 

PART IV

 

Item 15.  Exhibits and Financial Statement Schedules.

 

(a)

 

 

(1) See Index to Financial Statements and Schedules on page F-1 of this Form 10-K.

 

(2 & 3) See Items (b) and (c) below.

(b) Exhibits:

 

 

3.1^

 

Fifth Amended and Restated Agreement of Limited Partnership of ERP Operating Limited Partnership.

4.1*

 

Indenture, dated October 1, 1994, between the Operating Partnership, as obligor and The First National Bank of Chicago, as trustee (“Indenture”).

4.2**

 

First Supplemental Indenture to Indenture, dated as of September 9, 2004.

4.3++

 

Form of 7 ¼% Note due June 15, 2005.

4.4+++

 

Form of 7 3/4% Note due August 15, 2005.

4.5++++

 

Form of 6.69% Note due October 30, 2006.

4.6+++++

 

Description of 7 5/8% Notes due April 15, 2007.

4.7@

 

Form of 6.9% Note due August 1, 2007.

4.8@@

 

Form of 4.861% Note due November 30, 2007.

4.9@@@

 

Form of 4.75% Note due June 15, 2009.

4.10@@@@

 

Terms Agreement regarding 6.95% Notes due March 2, 2011.

4.11§

 

Terms Agreement regarding 6.625% Notes due March 15, 2012.

4.12§§

 

Form of 5.2% Note due April 1, 2013.

4.13§§§

 

Form of 5.25% Note due September 15, 2014.

4.14§§§§

 

Terms Agreement regarding 6.63% Notes due April 13, 2015.

4.15§§§§§

 

Terms Agreement regarding 7 1/8% Notes due October 15, 2017.

4.16§§§§§§

 

Terms Agreement regarding 7.57% Notes due August 15, 2026.

10.1^^

 

Master Amendment to Other Securities Term Sheets and Joinders to Operating Partnership Agreement of ERP Operating Limited Partnership dated December 19, 2003.

10.2^^

 

Assignment and Assumption Agreement between Equity Residential and ERP Operating Limited Partnership dated December 19, 2003.

10.3***

 

Noncompetition Agreement (Zell).

10.4***

 

Noncompetition Agreement (Spector).

10.5***

 

Form of Noncompetition Agreement (other officers).

10.6***

 

Amended and Restated Master Reimbursement Agreement, dated as of November 1, 1996 by and between Federal National Mortgage Association and EQR-Bond Partnership.

10.7••

 

Revolving Credit Agreement dated as of May 29, 2002 among the Operating Partnership, Bank of America, National Association, as administrative agent, JP Morgan Chase Bank, as syndication agent, and the banks named therein.

10.8••

 

Guaranty of Payment, dated as of May 29, 2002, between Equity Residential and Bank of America, N.A., as administrative agent.

10.9****

 

Amended and Restated Limited Partnership Agreement of Lexford Properties, L.P.

10.10

 

Amended and Restated Equity Residential Advantage Retirement Savings Plan, effective January 1, 2001.

10.11^^

 

First Amendment to the Equity Residential Advantage Retirement Savings Plan, effective December 2002.

10.12^^

 

Second Amendment to the Equity Residential Advantage Retirement Savings Plan, effective December 2002.

10.13^^

 

Third Amendment to the Equity Residential Advantage Retirement Savings Plan, effective May 2003.

10.14•••

 

Equity Residential 2002 Share Incentive Plan.

10.15+

 

First Amendment to Equity Residential 2002 Share Incentive Plan.

 

44



 

10.16+

 

Second Amendment to Equity Residential 2002 Share Incentive Plan.

10.17+

 

Form of 2005 Equity Residential Performance Based Unit Award Grant Agreement.

10.18

 

Form of Change in Control Agreement between Equity Residential and other executive officers.

10.19^^

 

Form of Indemnification Agreement between Equity Residential and each trustee and executive officer.

10.20#

 

Amended and Restated Executive Compensation Agreement between Equity Residential and Samuel Zell dated March 5, 2003, but effective as of January 1, 2003.

10.21+

 

First Amendment to Amended and Restated Executive Compensation Agreement between Equity Residential and Samuel Zell dated February 3, 2005.

10.22

 

Amended and Restated Deferred Compensation Agreement between Equity Residential and Douglas Crocker II dated as of January 21, 2002.

10.23

 

Amended and Restated Deferred Compensation Agreement between Equity Residential and Gerald A. Spector dated January 1, 2002.

10.24

 

Retirement Benefits Agreement between Samuel Zell and Equity Residential dated October 18, 2001.

10.25#

 

Employment Agreement between Equity Residential and Bruce W. Duncan dated as of January 20, 2003.

10.26#

 

Deferred Compensation Agreement between Equity Residential and Bruce W. Duncan dated as of January 20, 2003.

12

 

Computation of Ratio of Earnings to Combined Fixed Charges.

21

 

List of Subsidiaries of ERP Operating Limited Partnership.

23.1

 

Consent of Ernst & Young LLP.

24.1

 

Power of Attorney for John W. Alexander dated March 9, 2005.

24.2

 

Power of Attorney for Stephen O. Evans dated March 1, 2005.

24.3

 

Power of Attorney for Charles L. Atwood dated March 7, 2005.

24.4

 

Power of Attorney for Desiree G. Rogers dated March 7, 2005.

24.5

 

Power of Attorney for B. Joseph White dated March 4, 2005.

24.6

 

Power of Attorney for Sheli Z. Rosenberg dated March 8, 2005.

24.7

 

Power of Attorney for James D. Harper, Jr. dated March 4, 2005.

24.8

 

Power of Attorney for Boone A. Knox dated March 2, 2005.

24.9

 

Power of Attorney for Samuel Zell dated March 9, 2005.

24.10

 

Power of Attorney for Gerald A. Spector dated March 1, 2005.

31.1

 

Certification of Bruce W. Duncan, Chief Executive Officer of Registrant’s General Partner.

31.2

 

Certification of Donna Brandin, Chief Financial Officer of Registrant’s General Partner.

32.1

 

Certification Pursuant to 18 U.S.C. Section 1350, as adopted, pursuant to Section 906 of the Sarbanes–Oxley Act of 2002, of Bruce W. Duncan, Chief Executive Officer of Registrant’s General Partner.

32.2

 

Certification Pursuant to 18 U.S.C. Section 1350, as adopted, pursuant to Section 906 of the Sarbanes–Oxley Act of 2002, of Donna Brandin, Chief Financial Officer of Registrant’s General Partner.

 

 

 


+

 

Included as an exhibit to Equity Residential’s Form 10-K for the year ended December 31, 2004.

++

 

Included as an exhibit to Form 8-K of Merry Land & Investment Company, Inc., filed on June 20, 1995.

+++

 

Included as an exhibit to Form 10-K of Wellsford Residential Property Trust for the year ended December 31, 1995.

++++

 

Included as an exhibit to Form 8-K of Merry Land & Investment Company, Inc., filed on October 31, 1997.

+++++

 

Contained in 424B2 Prospectus Filing of Evans Withycombe Residential, Inc. dated March 28, 1997.

@

 

Included as an exhibit to Form 8-K of Merry Land & Investment Company, Inc., filed on July 29, 1997.

@@

 

Included as an exhibit to the Operating Partnership’s Form 8-K, filed on November 20, 2002.

 

45



 

@@@

 

Included as an exhibit to the Operating Partnership’s Form 8-K, filed on June 4, 2004.

@@@@

 

Included as an exhibit to the Operating Partnership’s Form 8-K, filed on March 2, 2001.

§

 

Included as an exhibit to the Operating Partnership’s Form 8-K, filed on March 14, 2002.

§§

 

Included as an exhibit to the Operating Partnership’s Form 8-K, filed on March 19, 2003.

§§§

 

Included as an exhibit to the Operating Partnership’s Form 8-K, filed on September 10, 2004.

§§§§

 

Included as an exhibit to the Operating Partnership’s Form 8-K, filed on April 13, 1998.

§§§§§

 

Included as an exhibit to the Operating Partnership’s Form 8-K, filed on October 9, 1997.

§§§§§§

 

Included as an exhibit to the Operating Partnership’s Form 8-K, filed on August 13, 1996.

*

 

Included as an exhibit to the Operating Partnership’s Form 10/A, dated December 12, 1994, File No. 0-24920, and incorporated herein by reference.

**

 

Included as an exhibit to the Operating Partnership’s Form 8-K, filed on September 10, 2004.

^

 

Included as an exhibit to the Operating Partnership’s Form 8-K/A dated July 23, 1998, filed on August 18, 1998.

^^

 

Included as an exhibit to the Operating Partnership’s Form 10-K for the year ended December 31, 2003.

***

 

Included as an exhibit to Equity Residential’s Form S-11 Registration Statement, File No. 33-63158, and incorporated herein by reference.

****

 

Included as an exhibit to Equity Residential’s Form 10-K for the year ended December 31, 1999.

 

Included as an exhibit to Equity Residential’s Form 10-K for the year ended December 31, 2001.

••

 

Included as an exhibit to Equity Residential’s Form 10-Q for the quarterly period ended June 30, 2002.

•••

 

Included as an exhibit to Equity Residential’s Form S-8 filed on January 21, 2003.

#

 

Included as an exhibit to Equity Residential’s Form 10-K for the year ended December 31, 2002.

(c)

 

Financial Statement Schedules: See Index to Financial Statements attached hereto on page F-1 of this Form 10-K.

 

46



 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf by the undersigned thereunto duly authorized.

 

 

 

ERP OPERATING LIMITED PARTNERSHIP

 

BY:

EQUITY RESIDENTIAL

 

 

 

ITS GENERAL PARTNER

 

 

 

 

Date:

March 14, 2005

 

 

By:

/s/

Bruce W. Duncan

 

 

 

 

Bruce W. Duncan

 

 

 

President, Chief Executive Officer,
and Trustee 

 

 

 

 

 

 

 

 

 

Date:

March 14, 2005

 

 

By:

/s/

Donna Brandin

 

 

 

 

Donna Brandin

 

 

 

Executive Vice President and
Chief Financial Officer

 

 

 

 

 

 

 

 

 

Date:

March 14, 2005

 

 

By:

/s/

Michael J. McHugh

 

 

 

 

Michael J. McHugh

 

 

 

Executive Vice President, Chief Accounting Officer, Treasurer and *Attorney-in-fact

 

 

 

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the following persons on behalf of the general partner of the registrant and in the capacities and on the dates indicated have signed this report below.

 

 

 

 

 

 

 

 

Date:

March 14, 2005

 

 

By:

/s/

Samuel Zell*

 

 

 

 

Samuel Zell

 

 

 

Chairman of the Board of Trustees

 

 

 

 

 

 

 

 

 

Date:

March 14, 2005

 

 

By:

/s/

Gerald A. Spector*

 

 

 

 

Gerald A. Spector

 

 

 

Executive Vice President, Chief
Operating Officer and Trustee

 

 

 

 

 

 

 

 

 

Date:

March 14, 2005

 

 

By:

/s/

Sheli Z. Rosenberg*

 

 

 

 

Sheli Z. Rosenberg

 

 

 

Trustee

 

 

 

 

 

 

 

 

 

Date:

March 14, 2005

 

 

By:

/s/

James D. Harper*

 

 

 

 

James D. Harper

 

 

 

Trustee

 

 

47



Date:

March 14, 2005

 

 

By:

/s/

John W. Alexander*

 

 

 

 

John W. Alexander

 

 

 

Trustees

 

 

 

 

 

 

 

 

 

Date:

March 14, 2005

 

 

By:

/s/

B. Joseph White*

 

 

 

 

B. Joseph White

 

 

 

Trustee

 

 

 

 

 

 

 

 

 

Date:

March 14, 2005

 

 

By:

/s/

Charles L. Atwood*

 

 

 

 

Charles L. Atwood

 

 

 

Trustees

 

 

 

 

 

 

 

 

 

Date:

March 14, 2005

 

 

By:

/s/

Desiree G. Rogers*

 

 

 

 

Desiree G. Rogers

 

 

 

Trustee

 

 

 

 

 

 

 

 

 

Date:

March 14, 2005

 

 

By:

/s/

Stephen O. Evans*

 

 

 

 

Stephen O. Evans

 

 

 

Trustees

 

 

 

 

 

 

 

 

 

Date:

March 14, 2005

 

 

By:

/s/

Boone A. Knox*

 

 

 

 

Boone A. Knox

 

 

 

Trustees

 

 

 

 

 

 

 

 

 

* By:

/s/  Michael J. McHugh

 

 

 

 

 

Michael J. McHugh as Attorney-in-fact

 

 

 

 

 

48



 

INDEX TO FINANCIAL STATEMENTS AND SCHEDULE

 

ERP OPERATING LIMITED PARTNERSHIP

 

FINANCIAL STATEMENTS FILED AS PART OF THIS REPORT

 

 

 

 

 

 

 

Report of Independent Registered Public Accounting Firm

 

 

 

 

 

 

 

Report of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting

 

 

 

 

 

 

 

Consolidated Balance Sheets as of December 31, 2004 and 2003

 

 

 

 

 

 

 

Consolidated Statements of Operations for the years ended December 31, 2004, 2003 and 2002

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows for the years ended December 31, 2004, 2003 and 2002

 

 

 

 

 

 

 

Consolidated Statements of Changes in Partners’ Capital for the years ended December 31, 2004, 2003 and 2002

 

 

 

 

 

 

 

Notes to Consolidated Financial Statements

 

 

 

 

 

SCHEDULE FILED AS PART OF THIS REPORT

 

 

 

 

 

 

 

Schedule III - Real Estate and Accumulated Depreciation

 

 

All other schedules have been omitted because they are inapplicable, not required or the information is included elsewhere in the consolidated financial statements or notes thereto.

 



 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Partners

ERP Operating Limited Partnership

 

We have audited the accompanying consolidated balance sheets of ERP Operating Limited Partnership (the “Operating Partnership”) as of December 31, 2004 and 2003 and the related consolidated statements of operations, changes in partners’ capital and cash flows for each of the three years in the period ended December 31, 2004.  Our audits also included the financial statement schedule listed in the accompanying index to the financial statements and schedule.  These financial statements and schedule are the responsibility of the Operating Partnership’s management.  Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

 

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of ERP Operating Limited Partnership at December 31, 2004 and 2003, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2004, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

 

As discussed in Note 2 to the consolidated financial statements, the Operating Partnership changed its method of accounting for variable interest entities in 2004 and changed its method of accounting for stock-based compensation in 2003.

 

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of ERP Operating Limited Partnership’s internal control over financial reporting as of December 31, 2004, based on the criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 28, 2005 expressed an unqualified opinion thereon.

 

 

 

 

/s/ ERNST & YOUNG LLP

 

 

ERNST & YOUNG LLP

 

 

Chicago, Illinois

February 28, 2005

 

F-2



 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON
INTERNAL CONTROL OVER FINANCIAL REPORTING

 

To the Partners

ERP Operating Limited Partnership

 

We have audited management’s assessment, included in the accompanying Management’s Report on Internal Control over Financial Reporting at Item 9A, that ERP Operating Limited Partnership (the “Operating Partnership”) maintained effective internal control over financial reporting as of December 31, 2004, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the “COSO Criteria”).  The Operating Partnership’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting.  Our responsibility is to express an opinion on management’s assessment and an opinion on the effectiveness of the Operating Partnership’s internal control over financial reporting based on our audit.

 

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.  Our audit included obtaining an understanding of internal control over financial reporting, evaluating management’s assessment, testing and evaluating the design and operating effectiveness of internal control, and performing such other procedures as we considered necessary in the circumstances.  We believe that our audit provides a reasonable basis for our opinion.

 

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.  A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

In our opinion, management’s assessment that ERP Operating Limited Partnership maintained effective internal control over financial reporting as of December 31, 2004, is fairly stated, in all material respects, based on the COSO Criteria.  Also, in our opinion, ERP Operating Limited Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2004, based on the COSO Criteria.

 

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of ERP Operating Limited Partnership as of December 31, 2004 and 2003 and the related consolidated statements of operations, changes in partners’ capital and cash flows for each of the three years in the period ended December 31, 2004 and our report dated February 28, 2005 expressed an unqualified opinion thereon.

 

 

 

 

/s/ Ernst & Young LLP

 

 

Ernst & Young LLP

 

 

Chicago, Illinois

February 28, 2005

 

F-3



 

ERP OPERATING LIMITED PARTNERSHIP

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

 

 

 

December 31,
2004

 

December 31,
2003

 

ASSETS

 

 

 

 

 

Investment in real estate

 

 

 

 

 

Land

 

$

2,183,818

 

$

1,845,547

 

Depreciable property

 

12,350,900

 

11,018,326

 

Construction in progress (including land)

 

317,903

 

10,506

 

Investment in real estate

 

14,852,621

 

12,874,379

 

Accumulated depreciation

 

(2,599,827

)

(2,296,013

)

Investment in real estate, net

 

12,252,794

 

10,578,366

 

 

 

 

 

 

 

Cash and cash equivalents

 

83,505

 

49,579

 

Investments in unconsolidated entities

 

11,461

 

473,977

 

Rents receivable

 

1,681

 

426

 

Deposits – restricted

 

82,194

 

133,752

 

Escrow deposits – mortgage

 

35,800

 

41,104

 

Deferred financing costs, net

 

34,986

 

31,135

 

Goodwill, net

 

30,000

 

30,000

 

Other assets

 

112,854

 

128,554

 

Total assets

 

$

12,645,275

 

$

11,466,893

 

 

 

 

 

 

 

LIABILITIES AND PARTNERS’ CAPITAL

 

 

 

 

 

Liabilities:

 

 

 

 

 

Mortgage notes payable

 

$

3,166,739

 

$

2,693,815

 

Notes, net

 

3,143,067

 

2,656,674

 

Line of credit

 

150,000

 

10,000

 

Accounts payable and accrued expenses

 

87,422

 

55,463

 

Accrued interest payable

 

70,411

 

60,334

 

Rents received in advance and other liabilities

 

227,588

 

189,372

 

Security deposits

 

49,501

 

44,670

 

Distributions payable

 

142,437

 

140,195

 

Total liabilities

 

7,037,165

 

5,850,523

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

Minority Interests – Partially Owned Properties

 

9,557

 

9,903

 

 

 

 

 

 

 

Partners’ capital:

 

 

 

 

 

Preference Units

 

636,216

 

670,913

 

Preference Interests

 

206,000

 

246,000

 

Junior Preference Units

 

184

 

2,217

 

General Partner

 

4,457,700

 

4,371,483

 

Limited Partners

 

319,841

 

342,809

 

Deferred compensation

 

(18

)

(3,554

)

Accumulated other comprehensive loss

 

(21,370

)

(23,401

)

Total partners’ capital

 

5,598,553

 

5,606,467

 

Total liabilities and partners’ capital

 

$

12,645,275

 

$

11,466,893

 

 

See accompanying notes

 

F-4



 

ERP OPERATING LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands except per OP Unit data)

 

 

 

Year Ended December 31,

 

 

 

2004

 

2003

 

2002

 

REVENUES

 

 

 

 

 

 

 

Rental income

 

$

1,878,262

 

$

1,691,647

 

$

1,677,459

 

Fee and asset management

 

11,239

 

14,373

 

9,582

 

Total revenues

 

1,889,501

 

1,706,020

 

1,687,041

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

Property and maintenance

 

520,412

 

460,426

 

427,960

 

Real estate taxes and insurance

 

222,448

 

184,483

 

170,029

 

Property management

 

75,888

 

68,058

 

72,416

 

Fee and asset management

 

8,623

 

7,819

 

7,885

 

Depreciation

 

484,209

 

414,998

 

389,580

 

General and administrative

 

51,236

 

38,810

 

46,492

 

Impairment on technology investments

 

 

1,162

 

1,162

 

Impairment on corporate housing business

 

 

 

17,122

 

Total expenses

 

1,362,816

 

1,175,756

 

1,132,646

 

 

 

 

 

 

 

 

 

Operating income

 

526,685

 

530,264

 

554,395

 

 

 

 

 

 

 

 

 

Interest and other income

 

10,685

 

16,217

 

14,792

 

Interest:

 

 

 

 

 

 

 

Expense incurred, net

 

(342,591

)

(322,903

)

(327,662

)

Amortization of deferred financing costs

 

(6,723

)

(5,612

)

(5,502

)

 

 

 

 

 

 

 

 

Income before allocation to Minority Interests, loss from investments in unconsolidated entities, net gain on sales of unconsolidated entities and discontinued operations

 

188,056

 

217,966

 

236,023

 

Allocation to Minority Interests – Partially Owned Properties

 

1,787

 

271

 

(1,867

)

Loss from investments in unconsolidated entities

 

(7,325

)

(10,118

)

(3,698

)

Net gain on sales of unconsolidated entities

 

4,593

 

4,942

 

5,054

 

Income from continuing operations

 

187,111

 

213,061

 

235,512

 

Net gain on sales of discontinued operations

 

323,925

 

310,706

 

104,296

 

Discontinued operations, net

 

13,128

 

54,738

 

108,367

 

Net income

 

$

524,164

 

$

578,505

 

$

448,175

 

 

 

 

 

 

 

 

 

ALLOCATION OF NET INCOME:

 

 

 

 

 

 

 

Preference Units

 

$

53,746

 

$

76,435

 

$

76,615

 

Preference Interests

 

$

19,420

 

$

20,211

 

$

20,211

 

Junior Preference Units

 

$

70

 

$

325

 

$

325

 

Premium on redemption of Preference Units

 

$

 

$

20,237

 

$

 

Premium on redemption of Preference Interests

 

$

1,117

 

$

 

$

 

 

 

 

 

 

 

 

 

General Partner

 

$

418,583

 

$

426,639

 

$

324,162

 

Limited Partners

 

31,228

 

34,658

 

26,862

 

Net income available to OP Units

 

$

449,811

 

$

461,297

 

$

351,024

 

 

 

 

 

 

 

 

 

Earnings per OP Unit – basic:

 

 

 

 

 

 

 

Income from continuing operations available to OP Units

 

$

0.38

 

$

0.33

 

$

0.47

 

Net income available to OP Units

 

$

1.50

 

$

1.57

 

$

1.19

 

Weighted average OP Units outstanding

 

300,683

 

294,523

 

294,637

 

 

 

 

 

 

 

 

 

Earnings per OP Unit – diluted:

 

 

 

 

 

 

 

Income from continuing operations available to OP Units

 

$

0.37

 

$

0.32

 

$

0.46

 

Net income available to OP Units

 

$

1.48

 

$

1.55

 

$

1.18

 

Weighted average OP Units outstanding

 

303,871

 

297,041

 

297,969

 

 

 

 

 

 

 

 

 

Distributions declared per OP Unit outstanding

 

$

1.73

 

$

1.73

 

$

1.73

 

 

See accompanying notes

 

F-5



 

ERP OPERATING LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)
(Amounts in thousands except per OP Unit data)

 

 

 

Year Ended December 31,

 

 

 

2004

 

2003

 

2002

 

 

 

 

 

 

 

 

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

524,164

 

$

578,505

 

$

448,175

 

Other comprehensive income (loss) – derivative and other instruments:

 

 

 

 

 

 

 

Unrealized holding (losses) gains arising during the year

 

(3,707

)

11,467

 

(10,905

)

Equity in unrealized holding gains (losses) arising during the year – unconsolidated entities

 

3,667

 

7,268

 

(689

)

Losses reclassified into earnings from other comprehensive income

 

2,071

 

1,653

 

845

 

Comprehensive income

 

$

526,195

 

$

598,893

 

$

437,426

 

 

See accompanying notes

 

F-6



 

ERP OPERATING LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)

 

 

 

Year Ended December 31,

 

 

 

2004

 

2003

 

2002

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

Net income

 

$

524,164

 

$

578,505

 

$

448,175

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Allocation to Minority Interests – Partially Owned Properties

 

(1,787

)

(271

)

1,867

 

Depreciation

 

496,583

 

471,569

 

472,956

 

Amortization of deferred financing costs

 

7,276

 

6,702

 

5,754

 

Amortization of discounts and premiums on debt

 

(784

)

(991

)

(822

)

Amortization of deferred settlements on derivative instruments

 

1,001

 

710

 

(306

)

Impairment on technology investments

 

 

1,162

 

1,162

 

Impairment on corporate housing business

 

 

 

17,122

 

Loss from investments in unconsolidated entities

 

7,325

 

10,118

 

3,698

 

Net (gain) on sales of unconsolidated entities

 

(4,593

)

(4,942

)

(5,054

)

Net (gain) on sales of discontinued operations

 

(323,925

)

(310,706

)

(104,296

)

Loss on debt extinguishments

 

113

 

2,095

 

792

 

Unrealized loss (gain) on derivative instruments

 

249

 

(118

)

328

 

Compensation paid with Company Common Shares

 

16,826

 

14,883

 

25,796

 

Other operating activities, net

 

(178

)

(3,147

)

2

 

 

 

 

 

 

 

 

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

(Increase) decrease in rents receivable

 

(628

)

2,234

 

(570

)

(Increase) decrease in deposits – restricted

 

(6,037

)

4,406

 

9,896

 

(Increase) decrease in other assets

 

(20,341

)

(18,940

)

14,531

 

Increase (decrease) in accounts payable and accrued expenses

 

2,844

 

(4,682

)

(3,392

)

Increase (decrease) in accrued interest payable

 

9,176

 

(2,851

)

406

 

Increase (decrease) in rents received in advance and other liabilities

 

7,655

 

(170

)

2,369

 

Increase (decrease) in security deposits

 

2,811

 

(1,247

)

(2,151

)

Net cash provided by operating activities

 

717,750

 

744,319

 

888,263

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

Investment in real estate – acquisitions

 

(820,029

)

(595,077

)

(258,269

)

Investment in real estate – development/other

 

(117,940

)

(8,386

)

(109,077

)

Improvements to real estate

 

(212,171

)

(181,948

)

(156,776

)

Additions to non-real estate property

 

(6,552

)

(2,928

)

(7,301

)

Interest capitalized for real estate under development

 

(11,687

)

 

(10,006

)

Interest capitalized for unconsolidated entities under development

 

(2,282

)

(20,647

)

(17,161

)

Proceeds from disposition of real estate, net

 

937,690

 

1,130,925

 

478,675

 

Proceeds from disposition of unconsolidated entities

 

7,940

 

14,136

 

49,862

 

Proceeds from refinancing of unconsolidated entities

 

 

6,708

 

4,375

 

Proceeds from disposition of furniture rental business

 

 

 

28,741

 

Investments in unconsolidated entities

 

(406,524

)

(14,038

)

(105,758

)

Distributions from unconsolidated entities

 

26,553

 

20,515

 

41,656

 

Decrease (increase) in deposits on real estate acquisitions, net

 

58,715

 

(22,656

)

24,845

 

Decrease in mortgage deposits

 

9,144

 

11,298

 

27,425

 

 

See accompanying notes

 

F-7



ERP OPERATING LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Amounts in thousands)

 

 

 

Year Ended December 31,

 

 

 

2004

 

2003

 

2002

 

Consolidation of previously Unconsolidated Properties:

 

 

 

 

 

 

 

Via acquisition (net of cash acquired)

 

$

(49,183

)

$

6,879

 

$

(40,113

)

Via FIN 46 (cash consolidated)

 

3,628

 

 

 

Acquisition of Minority Interests – Partially Owned Properties

 

(72

)

(125

)

 

Other investing activities, net

 

16,802

 

(10,628

)

260

 

Net cash (used for) provided by investing activities

 

(565,968

)

334,028

 

(48,622

)

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

Loan and bond acquisition costs

 

(9,696

)

(6,127

)

(11,233

)

Mortgage notes payable:

 

 

 

 

 

 

 

Proceeds

 

467,541

 

111,150

 

126,144

 

Lump sum payoffs

 

(469,333

)

(401,951

)

(374,983

)

Scheduled principal repayments

 

(25,607

)

(30,919

)

(32,731

)

Prepayment premiums/fees

 

(450

)

(2,187

)

(792

)

Notes, net:

 

 

 

 

 

 

 

Proceeds

 

898,014

 

398,816

 

447,064

 

Lump sum payoffs

 

(531,390

)

(190,000

)

(265,000

)

Scheduled principal repayments

 

(4,286

)

(4,480

)

(4,669

)

Line of credit:

 

 

 

 

 

 

 

Proceeds

 

1,742,000

 

182,000

 

776,500

 

Repayments

 

(1,602,000

)

(312,000

)

(831,500

)

(Payments on) proceeds from settlement of derivative instruments

 

(7,346

)

(12,999

)

5,757

 

Proceeds from sale of OP Units

 

6,853

 

6,324

 

9,411

 

Proceeds from sale of Preference Units

 

 

150,000

 

 

Proceeds from exercise of EQR options

 

79,043

 

68,400

 

29,578

 

OP Units repurchased and retired

 

 

 

(115,004

)

Redemption of Preference Units

 

 

(386,989

)

 

Redemption of Preference Interests

 

(40,000

)

 

 

Premium on redemption of Preference Units

 

 

(8,345

)

 

Payment of offering costs

 

(24

)

(5,304

)

(207

)

Contributions – Minority Interests – Partially Owned Properties

 

100

 

 

 

Distributions:

 

 

 

 

 

 

 

OP Units – General Partner

 

(484,540

)

(472,211

)

(473,996

)

Preference Units

 

(54,350

)

(79,341

)

(76,973

)

Preference Interests

 

(19,464

)

(20,211

)

(20,238

)

Junior Preference Units

 

(148

)

(324

)

(325

)

OP Units – Limited Partners

 

(36,446

)

(38,472

)

(39,607

)

Minority Interests – Partially Owned Properties

 

(26,327

)

(3,473

)

(12,608

)

Principal receipts on employee notes, net

 

 

 

4,043

 

Net cash (used for) financing activities

 

(117,856

)

(1,058,643

)

(861,369

)

Net increase (decrease) in cash and cash equivalents

 

33,926

 

19,704

 

(21,728

)

Cash and cash equivalents, beginning of year

 

49,579

 

29,875

 

51,603

 

Cash and cash equivalents, end of year

 

$

83,505

 

$

49,579

 

$

29,875

 

 

See accompanying notes

 

F-8



ERP OPERATING LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Amounts in thousands)

 

 

 

Year Ended December 31,

 

 

 

2004

 

2003

 

2002

 

SUPPLEMENTAL INFORMATION:

 

 

 

 

 

 

 

Cash paid during the year for interest

 

$

348,574

 

$

352,391

 

$

365,782

 

 

 

 

 

 

 

 

 

Valuation of OP Units issued Other transactions

 

$

9,087

 

$

226

 

$

1,046

 

 

 

 

 

 

 

 

 

Real estate acquisitions/dispositions:

 

 

 

 

 

 

 

Mortgage loans assumed

 

$

95,901

 

$

89,446

 

$

32,355

 

 

 

 

 

 

 

 

 

Valuation of OP Units issued

 

$

 

$

105

 

$

 

 

 

 

 

 

 

 

 

Mortgage loans (assumed) by purchaser

 

$

(29,470

)

$

(53,250

)

$

(9,924

)

 

 

 

 

 

 

 

 

Consolidation of previously Unconsolidated Properties – Via acquisition:

 

 

 

 

 

 

 

Investment in real estate

 

$

(960,331

)

$

(111,113

)

$

(102,110

)

 

 

 

 

 

 

 

 

Mortgage loans assumed

 

$

274,818

 

$

51,625

 

$

18,100

 

 

 

 

 

 

 

 

 

Valuation of OP Units issued

 

$

 

$

4,231

 

$

 

 

 

 

 

 

 

 

 

Minority Interests Partially Owned Properties

 

$

445

 

$

42

 

$

 

 

 

 

 

 

 

 

 

Investments in unconsolidated entities

 

$

608,681

 

$

34,942

 

$

(312

)

 

 

 

 

 

 

 

 

Net other liabilities recorded

 

$

27,204

 

$

27,152

 

$

44,209

 

 

 

 

 

 

 

 

 

Consolidation of previously unconsolidated properties – Via FIN 46:

 

 

 

 

 

 

 

Investment in real estate

 

$

(548,342

)

$

 

$

 

 

 

 

 

 

 

 

 

Mortgage loans consolidated

 

$

294,722

 

$

 

$

 

 

 

 

 

 

 

 

 

Minority interests Partially Owned Properties

 

$

3,074

 

$

 

$

 

 

 

 

 

 

 

 

 

Investments in unconsolidated entities

 

$

234,984

 

$

 

$

 

 

 

 

 

 

 

 

 

Net other liabilities recorded

 

$

19,190

 

$

 

$

 

 

 

 

 

 

 

 

 

Deconsolidation of previously Wholly Owned Properties:

 

 

 

 

 

 

 

Mortgage loans contributed

 

$

 

$

 

$

(118,376

)

 

 

 

 

 

 

 

 

Refinancing of mortgage notes payable into notes, net

 

$

130,000

 

$

 

$

 

 

See accompanying notes

 

F-9



 

ERP OPERATING LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL
(Amounts in thousands)

 

 

 

Year Ended December 31,

 

 

 

2004

 

2003

 

2002

 

 

 

 

 

 

 

 

 

PREFERENCE UNITS

 

 

 

 

 

 

 

Balance, beginning of year

 

$

670,913

 

$

946,157

 

$

966,671

 

Conversion of 7.00% Series E Cumulative Convertible

 

(34,519

)

(8,891

)

(20,442

)

Conversion of 7.25% Series G Convertible Cumulative

 

 

(29,184

)

(2

)

Redemption of 7.25% Series G Convertible Cumulative

 

 

(286,989

)

 

Conversion of 7.00% Series H Cumulative Convertible

 

(178

)

(180

)

(70

)

Redemption of 7.625% Series L Cumulative Redeemable

 

 

(100,000

)

 

Issuance of 6.48% Series N Cumulative Redeemable

 

 

150,000

 

 

Balance, end of year

 

$

636,216

 

$

670,913

 

$

946,157

 

 

 

 

 

 

 

 

 

PREFERENCE INTERESTS

 

 

 

 

 

 

 

Balance, beginning of year

 

$

246,000

 

$

246,000

 

$

246,000

 

Redemption of Series A

 

(40,000

)

 

 

Balance, end of year

 

$

206,000

 

$

246,000

 

$

246,000

 

 

 

 

 

 

 

 

 

JUNIOR PREFERENCE UNITS

 

 

 

 

 

 

 

Balance, beginning of year

 

$

2,217

 

$

5,846

 

$

5,846

 

Conversion of Series A

 

(2,033

)

(3,629

)

 

Balance, end of year

 

$

184

 

$

2,217

 

$

5,846

 

 

 

 

 

 

 

 

 

GENERAL PARTNER

 

 

 

 

 

 

 

Balance, beginning of year

 

$

4,371,483

 

$

4,306,873

 

$

4,506,097

 

Issuance of OP Units through conversion of Preference Units into  OP Units held by General Partner

 

34,697

 

38,255

 

20,514

 

Conversion of OP Units held by Limited Partners to OP Units held  by General Partner

 

36,920

 

10,903

 

14,768

 

Issuance of OP Units through exercise of EQR share options

 

79,043

 

68,400

 

29,578

 

Issuance of OP Units through EQR’s Employee Share Purchase Plan

 

6,853

 

6,324

 

7,377

 

Issuance of OP Units through EQR’s Share Purchase – DRIP Plan

 

 

 

861

 

Issuance of OP Units through Dividend Reinvestment – DRIP Plan

 

 

 

1,173

 

Stock-based employee compensation expense:

 

 

 

 

 

 

 

EQR restricted/performance shares

 

9,018

 

2,497

 

12,136

 

EQR share options

 

2,982

 

2,626

 

 

EQR ESPP discount

 

1,290

 

1,196

 

 

OP Units repurchased and retired

 

 

 

(115,004

)

Offering costs

 

(24

)

(5,304

)

(207

)

Principal receipts on employee notes

 

 

 

4,043

 

Net income available to OP Units – General Partner

 

418,583

 

426,639

 

324,162

 

Premium on redemption of Preference Units – original issuance costs

 

 

11,892

 

 

Premium on redemption of Preference Interests – original issuance costs

 

1,117

 

 

 

OP Unit – General Partner distributions

 

(488,040

)

(474,702

)

(473,898

)

Other

 

(8,705

)

(24,661

)

(29,017

)

Adjustment for Limited Partners ownership in Operating Partnership

 

(7,517

)

545

 

4,290

 

Balance, end of year

 

$

4,457,700

 

$

4,371,483

 

$

4,306,873

 

 

See accompanying notes

 

F-10



ERP OPERATING LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL (Continued)
(Amounts in thousands)

 

 

 

Year Ended December 31,

 

 

 

2004

 

2003

 

2002

 

LIMITED PARTNERS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of year

 

$

342,809

 

$

349,646

 

$

379,898

 

Issuance of OP Units in connection with mergers and acquisitions

 

9,087

 

4,562

 

1,046

 

Conversion of OP Units held by Limited Partners to OP Units held by General Partner

 

(36,920

)

(10,903

)

(14,768

)

Issuance of OP Units through conversion of Junior Preference Units into OP Units held by Limited Partners

 

2,033

 

3,629

 

 

Net income available to OP Units – Limited Partners

 

31,228

 

34,658

 

26,862

 

OP Unit – Limited Partners distributions

 

(35,913

)

(38,238

)

(39,102

)

Adjustment for Limited Partners’ ownership in Operating Partnership

 

7,517

 

(545

)

(4,290

)

Balance, end of year

 

$

319,841

 

$

342,809

 

$

349,646

 

 

 

 

 

 

 

 

 

DEFERRED COMPENSATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of year

 

$

(3,554

)

$

(12,118

)

$

(25,778

)

EQR restricted/performance shares granted, net of cancellations

 

 

 

(12,136

)

Amortization to compensation expense – EQR restricted/performance shares

 

3,536

 

8,564

 

25,796

 

Balance, end of year

 

$

(18

)

$

(3,554

)

$

(12,118

)

 

 

 

 

 

 

 

 

ACCUMULATED OTHER COMPREHENSIVE LOSS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of year

 

$

(23,401

)

$

(43,789

)

$

(33,040

)

Accumulated other comprehensive loss – derivative and other instruments:

 

 

 

 

 

 

 

Unrealized holding (losses) gains arising during the year

 

(3,707

)

11,467

 

(10,905

)

Equity in unrealized holding gains (losses) arising during the year – unconsolidated entities

 

3,667

 

7,268

 

(689

)

Losses reclassified into earnings from other comprehensive income

 

2,071

 

1,653

 

845

 

Balance, end of year

 

$

(21,370

)

$

(23,401

)

$

(43,789

)

 

See accompanying notes

 

F-11



 

ERP OPERATING LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

1.                                      Business

 

ERP Operating Limited Partnership (“ERPOP”), an Illinois limited partnership, was formed in May 1993 to conduct the multifamily residential property business of Equity Residential (“EQR”).  EQR is a Maryland real estate investment trust (“REIT”) formed in March 1993 and is a fully integrated real estate company engaged in the acquisition, development, ownership, management and operation of multifamily properties.

 

EQR is the general partner of, and as of December 31, 2004 owned an approximate 93.3% ownership interest in ERPOP.  EQR is structured as an umbrella partnership REIT (“UPREIT”), under which all property ownership and business operations are conducted through ERPOP and its subsidiaries.  As used herein, the term “Operating Partnership” includes ERPOP and those entities owned or controlled by it.  As used herein, the term “Company” means EQR and the Operating Partnership.

 

As of December 31, 2004, the Operating Partnership, directly or indirectly through investments in title holding entities, owned all or a portion of 939 properties in 32 states and the District of Columbia consisting of 200,149 units.  The ownership breakdown includes:

 

 

 

Properties

 

Units

 

Wholly Owned Properties

 

842

 

176,711

 

Partially Owned Properties (Consolidated)

 

39

 

7,220

 

Unconsolidated Properties

 

58

 

16,218

 

 

 

939

 

200,149

 

 

The “Wholly Owned Properties” are accounted for under the consolidation method of accounting.  The Operating Partnership beneficially owns 100% fee simple title to 841 of the 842 Wholly Owned Properties.  The Operating Partnership owns the building and improvements and leases the land underlying the improvements under a long-term ground lease that expires in 2026 for one property.  This one property is consolidated and reflected as a real estate asset while the ground lease is accounted for as an operating lease in accordance with Statement of Financial Accounting Standards (“SFAS”) No. 13, Accounting for Leases.

 

The “Partially Owned Properties” are controlled by the Operating Partnership but have partners with minority interests and are accounted for under the consolidation method of accounting.  The “Unconsolidated Properties” are partially owned but not controlled by the Operating Partnership.  With the exception of one property, the Unconsolidated Properties consist of investments in partnership interests and/or subordinated mortgages that are accounted for under the equity method of accounting.  The remaining one property consists of an investment in a limited liability company that, as a result of the terms of the operating agreement, is accounted for as a management contract right with all fees recognized as fee and asset management revenue.  The above table does not include various uncompleted development properties.

 

2.                                      Summary of Significant Accounting Policies

 

Basis of Presentation

 

Due to the Operating Partnership’s ability as general partner to control either through ownership or by contract its subsidiaries, other than entities that own controlling interests in the Unconsolidated Properties and certain other entities in which the Operating Partnership has investments, each such subsidiary has been consolidated with the Operating Partnership for financial reporting purposes.  Effective March 31, 2004, the consolidated financial statements also include all variable interest entities

 

F-12



 

for which the Operating Partnership is the primary beneficiary.

 

Minority interests represented by EQR’s indirect 1% interest in various entities are immaterial and have not been accounted for in the Consolidated Financial Statements.  In addition, certain amounts due from EQR for its 1% interests in various entities have not been reflected in the Consolidated Balance Sheets since such amounts are immaterial.

 

The Company’s mergers and acquisitions were accounted for as purchases in accordance with either Accounting Principles Board (“APB”) Opinion No. 16, Business Combinations, or SFAS No. 141, Business Combinations.  SFAS No. 141 requires all business combinations initiated after June 30, 2001 be accounted for under the purchase method of accounting. The fair value of the consideration given by the Company in the mergers were used as the valuation basis for each of the combinations.  The accompanying consolidated statements of operations and cash flows include the results of the properties purchased through the mergers and through acquisitions from their respective closing dates.

 

Real Estate Assets and Depreciation of Investment in Real Estate

 

The Operating Partnership allocates the purchase price of properties to net tangible and identified intangible assets acquired based on their fair values in accordance with the provisions of SFAS No. 141.  In making estimates of fair values for purposes of allocating purchase price, the Operating Partnership utilizes a number of sources, including independent appraisals that may be obtained in connection with the acquisition or financing of the respective property, our own analysis of recently acquired and existing comparable properties in our portfolio, and other market data.  The Operating Partnership also considers information obtained about each property as a result of its pre-acquisition due diligence, marketing and leasing activities in estimating the fair value of the tangible and intangible assets acquired.  The Operating Partnership allocates the purchase price of acquired real estate to various components as follows:

 

                  Land – Based on actual purchase price if acquired separately or market research/comparables if acquired with an operating property.

                  Furniture, Fixtures and Equipment – Ranges between $1,500 and $3,000 per apartment unit acquired as an estimate of the fair value of the appliances & fixtures inside a unit.  The per-unit amount applied depends on the type of apartment building acquired.  Depreciation is calculated on the straight-line method over an estimated useful life of five years.

                  In-Place Leases – The Operating Partnership considers the value of acquired in-place leases that meet the definition outlined in SFAS No. 141, paragraph 37.  The amortization period is the average remaining term of each respective in-place acquired lease.

                  Other Intangible Assets – The Operating Partnership considers whether it has acquired other intangible assets that meet the definition outlined in SFAS No. 141, paragraph 39, including any customer relationship intangibles.  The amortization period is the estimated useful life of the acquired intangible asset.

                  Building – Based on the fair value determined on an “as-if vacant” basis.  Depreciation is calculated on the straight-line method over an estimated useful life of thirty years.

 

Replacements inside a unit such as appliances and carpeting are depreciated over a five-year estimated useful life.  Expenditures for ordinary maintenance and repairs are expensed to operations as incurred and significant renovations and improvements that improve and/or extend the useful life of the asset are capitalized over their estimated useful life, generally five to ten years.  Initial direct leasing costs are expensed as incurred as such expense approximates the deferral and amortization of initial direct leasing costs over the lease terms.  Property sales or dispositions are recorded when title transfers and sufficient consideration has been received by the Operating Partnership.  Upon disposition, the related costs and accumulated depreciation are removed from the respective accounts.  Any gain or loss on sale is recognized in accordance with accounting principles generally accepted in the United States.

 

The Operating Partnership classifies real estate assets as real estate held for disposition when it is

 

F-13



 

certain a property will be disposed of in accordance with SFAS No. 144 (see further discussion below).

 

The Operating Partnership classifies properties under development and/or expansion and properties in the lease up phase (including land) as construction in progress until construction has been completed and all certificates of occupancy permits have been obtained.

 

Impairment of Long-Lived Assets, Including Goodwill

 

In June 2001, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 142, Goodwill and Other Intangible Assets.  SFAS No. 142 prohibits the amortization of goodwill and requires that goodwill be reviewed for impairment at least annually.  In August 2001, the FASB issued SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets.  SFAS Nos. 142 and 144 were effective for fiscal years beginning after December 15, 2001.  The Operating Partnership adopted these standards effective January 1, 2002.  See Notes 13 and 19 for further discussion.

 

The Operating Partnership periodically evaluates its long-lived assets, including its investments in real estate and goodwill, for indicators of permanent impairment.  The judgments regarding the existence of impairment indicators are based on factors such as operational performance, market conditions, expected holding period of each asset and legal and environmental concerns.  Future events could occur which would cause the Operating Partnership to conclude that impairment indicators exist and an impairment loss is warranted.

 

For long-lived assets to be held and used, the Operating Partnership compares the expected future undiscounted cash flows for the long-lived asset against the carrying amount of that asset.  If the sum of the estimated undiscounted cash flows is less than the carrying amount of the asset, the Operating Partnership further analyzes each individual asset for other temporary or permanent indicators of impairment.  An impairment loss would be recorded for the difference between the estimated fair value and the carrying amount of the asset if the Operating Partnership deems this difference to be permanent.

 

For long-lived assets to be disposed of, an impairment loss is recognized when the estimated fair value of the asset, less the estimated cost to sell, is less than the carrying amount of the asset measured at the time that the Operating Partnership has determined it will sell the asset.  Long-lived assets held for disposition and the related liabilities are separately reported at the lower of their carrying amounts or their estimated fair values, less their costs to sell, and are not depreciated after reclassification to real estate held for disposition.

 

Cost Capitalization

 

See the Real Estate Assets and Depreciation of Investment in Real Estate section for discussion of the policy with respect to capitalization vs. expensing of fixed asset/repair and maintenance costs.  In addition, the Operating Partnership capitalizes the payroll and associated costs of employees directly responsible for and who spend all of their time on the supervision of major capital and/or renovation projects.  These costs are reflected on the balance sheet as an increase to depreciable property.

 

The Operating Partnership follows the guidance in SFAS No. 67, Accounting for Costs and Initial Rental Operations of Real Estate Projects, for all development projects and uses its professional judgment in determining whether such costs meet the criteria for capitalization or must be expensed as incurred.  The Operating Partnership capitalizes, through the date the certificates of occupancy (“CO”) are issued (CO’s are deemed final within 90 days of issuance), interest, real estate taxes and insurance and payroll and associated costs for those individuals directly responsible for and who spend all of their time on development activities.  These costs are reflected on the balance sheet as construction in progress for each specific property.  The Operating Partnership expenses as incurred all payroll costs of on-site employees working directly at our properties, except as noted above on our development properties prior to certificate of occupancy issuance and on specific major renovation at selected properties when additional incremental employees are hired.

 

F-14



 

Cash and Cash Equivalents

 

The Operating Partnership considers all demand deposits, money market accounts and investments in certificates of deposit and repurchase agreements purchased with a maturity of three months or less, at the date of purchase, to be cash equivalents.  The Operating Partnership maintains its cash and cash equivalents at financial institutions.  The combined account balances at one or more institutions typically exceed the Federal Depository Insurance Corporation (“FDIC”) insurance coverage, and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage.  The Operating Partnership believes that the risk is not significant, as the Operating Partnership does not anticipate the financial institutions’ non-performance.

 

Deferred Financing Costs

 

Deferred financing costs include fees and costs incurred to obtain the Operating Partnership’s line of credit and long-term financings.  These costs are amortized over the terms of the related debt.  Unamortized financing costs are written-off when debt is retired before the maturity date.  The accumulated amortization of such deferred financing costs was $18.1 million and $16.0 million at December 31, 2004 and 2003, respectively.

 

Fair Value of Financial Instruments, Including Derivative Instruments

 

The valuation of financial instruments under SFAS No. 107, Disclosures about Fair Value of Financial Instruments, and SFAS No. 133 and its amendments (SFAS Nos. 137/138/149), Accounting for Derivative Instruments and Hedging Activities, requires the Operating Partnership to make estimates and judgments that affect the fair value of the instruments.  The Operating Partnership, where possible, bases the fair values of its financial instruments, including its derivative instruments, on listed market prices and third party quotes. Where these are not available, the Operating Partnership bases its estimates on other factors relevant to the financial instruments.

 

In the normal course of business, the Operating Partnership is exposed to the effect of interest rate changes.  The Operating Partnership limits these risks by following established risk management policies and procedures including the use of derivatives to hedge interest rate risk on debt instruments.

 

The Operating Partnership has a policy of only entering into contracts with major financial institutions based upon their credit ratings and other factors.  When viewed in conjunction with the underlying and offsetting exposure that the derivatives are designed to hedge, the Operating Partnership has not sustained a material loss from those instruments nor does it anticipate any material adverse effect on its net income or financial position in the future from the use of derivatives.

 

On January 1, 2001, the Operating Partnership adopted SFAS No. 133 and its amendments (SFAS Nos. 137/138/149), which requires an entity to recognize all derivatives as either assets or liabilities in the statement of financial position and to measure those instruments at fair value.  Additionally, the fair value adjustments will affect either partners’ capital or net income depending on whether the derivative instruments qualify as a hedge for accounting purposes and, if so, the nature of the hedging activity.  When the terms of an underlying transaction are modified, or when the underlying transaction is terminated or completed, all changes in the fair value of the instrument are marked-to-market with changes in value included in net income each period until the instrument matures.  Any derivative instrument used for risk management that does not meet the hedging criteria of SFAS No. 133 is marked-to-market each period.  The Operating Partnership does not use derivatives for trading or speculative purposes.

 

F-15



 

The fair values of the Operating Partnership’s financial instruments, other than derivative instruments, including cash and cash equivalents, mortgage notes payable, other notes payable, line of credit and other financial instruments, approximate their carrying or contract values.

 

Revenue Recognition

 

Rental income attributable to leases is recorded when due from residents and is recognized monthly as it is earned, which is not materially different than on a straight-line basis.  Leases entered into between a resident and a property, for the rental of an apartment unit, are generally year-to-year, renewable upon consent of both parties on an annual or monthly basis.  Fee and asset management revenue and interest income are recorded on an accrual basis.

 

Stock-Based Compensation

 

Prior to 2003, the Company had chosen to account for its stock-based compensation in accordance with APB No. 25, Accounting for Stock Issued to Employees, which resulted in no compensation expense for options issued with an exercise price equal to or exceeding the market value of the Company’s Common Shares (see definition below) the date of grant (intrinsic method).  The Company elected to account for its stock-based compensation in accordance with SFAS No. 123 and its amendment (SFAS No. 148), Accounting for Stock Based Compensation, effective in the first quarter of 2003, which resulted in compensation expense being recorded based on the fair value of the stock compensation granted.

 

The Company elected the “Prospective Method” which requires expensing of employee awards granted or modified after January 1, 2003.  Compensation expense under all of the Company’s plans is generally recognized over periods ranging from three months to five years.  The cost related to stock-based employee compensation included in the determination of net income for the years ended December 31, 2004 and 2003 is less than that which would have been recognized if the fair value based method had been applied to all awards since the original effective date of SFAS No. 123.

 

Any Common Shares issued pursuant to EQR’s incentive equity compensation and employee share purchase plans will result in the Operating Partnership issuing units of limited partnership interest (“OP Units”) to EQR on a one-for-one basis, with the Operating Partnership receiving the net cash proceeds of such issuances.

 

The Company will adopt SFAS No. 123(R), Share-Based Payment, as required effective July 1, 2005.   The Company does not anticipate that the adoption of SFAS No. 123(R) will have a material effect on its consolidated statements of operations or financial position.

 

The following table illustrates the effect on net income and earnings per OP Unit if the fair value based method had been applied to all outstanding and unvested awards in each period presented:

 

F-16



 

 

 

Year Ended December 31,

 

 

 

2004

 

2003

 

2002

 

 

 

(Amounts in thousands except per OP Unit amounts)

 

 

 

 

 

 

 

 

 

Net income available to OP Units – as reported

 

$

449,811

 

$

461,297

 

$

351,024

 

Add: Stock-based employee compensation expense included in reported net income:

 

 

 

 

 

 

 

EQR’s restricted/performance shares

 

12,554

 

11,043

 

25,839

 

EQR’s share options (1)

 

2,982

 

2,626

 

 

EQR’s ESPP discount

 

1,290

 

1,196

 

 

Deduct: Stock-based employee compensation expense determined under fair value based method for all awards:

 

 

 

 

 

 

 

EQR’s restricted/performance shares

 

(12,554

)

(11,043

)

(25,839

)

EQR’s share options (1)

 

(5,385

)

(6,784

)

(6,249

)

EQR’s ESPP discount

 

(1,290

)

(1,196

)

(1,379

)

Net income available to OP Units – pro forma

 

$

447,408

 

$

457,139

 

$

343,396

 

Earnings per OP Unit:

 

 

 

 

 

 

 

Basic – as reported

 

$

1.50

 

$

1.57

 

$

1.19

 

Basic – pro forma

 

$

1.49

 

$

1.55

 

$

1.16

 

Diluted – as reported

 

$

1.48

 

$

1.55

 

$

1.18

 

Diluted – pro forma

 

$

1.47

 

$

1.54

 

$

1.15

 

 


(1)       Share options for the year ended December 31, 2003 included $1.4 million of expense recognition related to options granted in the first quarter of 2003 to EQR’s former chief executive officer. These options vested immediately upon grant.

 

The fair value of the option grants as computed under SFAS No. 123 would be recognized over the vesting period of the options.  The fair value for the Company’s share options was estimated at the time the share options were granted using the Black Scholes option pricing model with the following weighted-average assumptions:

 

 

 

2004

 

2003

 

2002

 

Risk-free interest rate

 

3.03

%

3.02

%

4.55

%

 

 

 

 

 

 

 

 

Expected dividend yield

 

6.52

%

6.46

%

6.46

%

 

 

 

 

 

 

 

 

Volatility

 

20.0

%

20.8

%

20.8

%

 

 

 

 

 

 

 

 

Expected life of the options

 

5 years

 

5 years

 

7 years

 

 

 

 

 

 

 

 

 

Fair value of options granted

 

$

2.26

 

$

1.90

 

$

2.69

 

 

The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable.  In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because the Company’s share options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its share options.

 

F-17



 

Income Taxes

 

The Operating Partnership generally is not liable for Federal income taxes as the partners recognize their proportionate share of the Operating Partnership’s income or loss in their tax returns; therefore no provision for Federal income taxes is made in the consolidated financial statements of the Operating Partnership.  The Operating Partnership is subject to certain state and local income, excise and franchise taxes.  The aggregate cost of land and depreciable property for federal income tax purposes as of December 31, 2004 and 2003 was approximately $9.3 billion and $8.5 billion, respectively.

 

The Operating Partnership has elected Taxable REIT Subsidiary (“TRS”) status for certain of its corporate subsidiaries.  The federal income taxes for these TRS entities were not material during 2004, 2003 or 2002 and were recognized as general and administrative expenses in the consolidated statements of operations.

 

During the years ended December 31, 2004, 2003 and 2002, the Operating Partnership’s tax treatment of dividends and distributions were as follows:

 

 

 

Year Ended December 31,

 

 

 

2004

 

2003

 

2002

 

Tax treatment of dividends and distributions:

 

 

 

 

 

 

 

Ordinary dividends

 

$

1.104

 

$

0.799

 

$

1.398

 

Qualified dividends

 

0.003

 

0.009

 

 

Pre-May 6, 2003 long-term capital gain

 

 

0.150

 

0.212

 

Post-May 5, 2003 long-term capital gain

 

0.432

 

0.315

 

 

Unrecaptured section 1250 gain

 

0.151

 

0.251

 

0.120

 

Nontaxable distributions

 

0.040

 

0.206

 

 

Dividends and distributions declared per OP Unit outstanding

 

$

1.730

 

$

1.730

 

$

1.730

 

 

Partners’ Capital

 

The “Limited Partners” of ERPOP include various individuals and entities that contributed their properties to ERPOP in exchange for OP Units.  The “General Partner” of ERPOP is EQR.  Net income is allocated to the Limited Partners based on their respective ownership percentage of the Operating Partnership.  The ownership percentage is calculated by dividing the number of OP Units held by the Limited Partners by the total OP Units held by the Limited Partners and the General Partner.  Issuance of additional EQR common shares of beneficial interest, $0.01 par value per share (the “Common Shares”), and OP Units changes the ownership interests of both the Limited Partners and EQR.  Such transactions and the proceeds therefrom are treated as capital transactions.

 

Minority Interests

 

The Operating Partnership reflects minority interests in partially owned properties on the balance sheet for the portion of properties consolidated by the Operating Partnership that are not wholly-owned by the Operating Partnership.  The earnings or losses from those properties attributable to the minority interests are reflected as minority interests in partially owned properties in the consolidated statements of operations.

 

Use of Estimates

 

In preparation of the Operating Partnership’s financial statements in conformity with accounting principles generally accepted in the United States, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of

 

F-18



 

the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

 

Reclassifications

 

Certain reclassifications considered necessary for a fair presentation have been made to the prior period financial statements in order to conform to the current year presentation.  These reclassifications have not changed the results of operations or partners’ capital.

 

Other

 

The Operating Partnership adopted FASB Interpretation (“FIN”) No. 46, Consolidation of Variable Interest Entities, as required, effective March 31, 2004.  The adoption required the consolidation of all previously unconsolidated development projects.  FIN No. 46 requires the Operating Partnership to consolidate the assets, liabilities and results of operations of the activities of a variable interest entity, which for the Operating Partnership includes only its development partnerships, if the Operating Partnership is entitled to receive a majority of the entity’s residual returns and/or is subject to a majority of the risk of loss from such entity’s activities.  As of the original formation of the respective joint ventures, the Operating Partnership is considered to be the primary beneficiary and the fair value of the assets, liabilities and non-controlling interests of these development projects approximates carryover basis.  Due to the March 31, 2004 effective date, the Operating Partnership has only consolidated the results of operations beginning April 1, 2004.  The adoption of FIN No. 46 did not have any effect on net income as the aggregate results of operations of these development properties were previously included in loss from investments in unconsolidated entities.  See Note 4 for additional discussion.

 

The Operating Partnership generally contributes between 25% and 35% of the project cost of the joint venture projects under development (constituting 100% of the equity), with the remaining cost financed through third-party construction mortgages.  Voting rights are shared equally between the Operating Partnership and its respective development partners and accordingly, these projects were accounted for under the equity method prior to the adoption of FIN No. 46.

 

In May 2003, the FASB issued SFAS No. 150, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity.  SFAS No. 150 establishes standards for classifying and measuring as liabilities certain financial instruments that embody obligations of the issuer and have characteristics of both liabilities and equity.  On November 7, 2003, the FASB issued FSP No. FAS 150-3, which deferred for an indefinite period the classification and measurement provisions, but not the disclosure provisions (see discussion below), of SFAS No. 150 as it relates to noncontrolling interests that are classified as equity in the financial statements of a subsidiary but would be classified as a liability in the parent’s financial statements under SFAS No. 150 (e.g., minority interests in consolidated limited-life subsidiaries).  The Operating Partnership does not have any mandatorily redeemable preferred shares/units that fall within the scope of SFAS No. 150.

 

With regards to the aforementioned disclosure provisions, the Operating Partnership is presently the controlling partner in various consolidated partnerships consisting of 39 properties and 7,220 units having a minority interest book value of $9.6 million at December 31, 2004. These partnerships contain provisions that require the partnerships to be liquidated through the sale of its assets upon reaching a date specified in each respective partnership agreement.  The Operating Partnership, as controlling partner, has an obligation to cause the property owning partnerships to distribute proceeds of liquidation to the Minority Interests in these Partially Owned Properties only to the extent that the net proceeds received by the partnerships from the sale of its assets warrant a distribution based on the partnership agreements.  As of December 31, 2004, the Operating Partnership estimates the value of Minority Interest distributions would have been approximately $111.3 million (“Settlement Value”) had the partnerships been liquidated.  This Settlement Value is based on estimated third party consideration realized by the partnerships upon disposition of the Partially Owned Properties and is net of all other assets and

 

F-19



 

liabilities, including yield maintenance on the mortgages encumbering the properties, that would have been due on December 31, 2004 had those mortgages been prepaid.  Due to, among other things, the inherent uncertainty in the sale of real estate assets, the amount of any potential distribution to the Minority Interests in the Operating Partnership’s Partially Owned Properties is subject to change.  To the extent that the partnerships’ underlying assets are worth less than the underlying liabilities, the Operating Partnership has no obligation to remit any consideration to the Minority Interests in Partially Owned Properties.

 

On July 31, 2003, the SEC clarified its position with respect to Emerging Issues Task Force (“EITF”) Topic D-42, the Effect on the Calculation of Earnings per Share for the Redemption or Induced Conversion of Preferred Stock.  Under the SEC’s revised interpretation, in connection with the redemption of preferred shares/units, the original issuance costs of these shares/units must be treated in a manner similar to preferred distributions and deducted from net income in arriving at net income available to OP Units.  The clarification of EITF Topic D-42 was required to be adopted effective July 1, 2003 on a retroactive basis by restating prior periods included in the current financial statements.  The Operating Partnership recorded an $8.3 million cash premium and $11.9 million in original issuance costs as a premium on the redemption of its Series G Preference Units in December 2003.  In addition, the Operating Partnership recorded $1.1 million in original issuance costs as a premium on the redemption of its Series A Preference Interests in September 2004.  The Operating Partnership had no recorded original issuance costs associated with, nor did it incur any cash redemption premium upon redemption of, its Series L Preference Units redeemed in 2003.

 

In April 2002, the FASB issued SFAS No. 145, Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13, and Technical Corrections.  SFAS No. 145, among other items, rescinds the automatic classification of costs incurred on debt extinguishment as extraordinary charges.  Instead, gains and losses from debt extinguishment should only be classified as extraordinary if they meet the “unusual and infrequently occurring” criteria outlined in APB No. 30.  SFAS No. 145 is effective for fiscal years beginning after May 15, 2002.  The Operating Partnership adopted the standard effective January 1, 2003. Prior period gains/losses have been reclassified to a component of interest expense.

 

3.                                      Partners’ Capital

 

The following tables present the changes in the Operating Partnership’s issued and outstanding OP Units and the limited partners’ OP Units for the years ended December 31, 2004, 2003 and 2002:

 

 

 

2004

 

2003

 

2002

 

OP Units outstanding at January 1,

 

299,551,617

 

293,396,124

 

294,818,566

 

 

 

 

 

 

 

 

 

Issued to General Partner:

 

 

 

 

 

 

 

Conversion of Series E Preference Units

 

1,536,501

 

395,723

 

909,873

 

Conversion of Series G Preference Units

 

 

996,459

 

70

 

Conversion of Series H Preference Units

 

10,268

 

10,424

 

4,050

 

Employee Share Purchase Plan

 

275,616

 

289,274

 

324,238

 

Dividend Reinvestment – DRIP Plan

 

 

 

41,407

 

Share Purchase – DRIP Plan

 

 

 

31,354

 

Exercise of EQR options

 

3,350,759

 

3,249,555

 

1,435,115

 

Restricted EQR share grants, net

 

515,622

 

900,555

 

885,967

 

OP Units repurchased and retired

 

 

 

(5,092,300

)

OP Units other

 

(199

)

(217

)

396

 

 

 

 

 

 

 

 

 

Issued to Limited Partners:

 

 

 

 

 

 

 

Issuance – Other transactions

 

306,694

 

165,628

 

37,388

 

Conversion of Series A Junior Preference Units

 

82,977

 

148,092

 

 

OP Units outstanding at December 31,

 

305,629,855

 

299,551,617

 

293,396,124

 

 

F-20



 

 

 

2004

 

2003

 

2002

 

Limited Partner OP Units outstanding at January 1,

 

21,907,732

 

22,300,643

 

23,197,192

 

 

 

 

 

 

 

 

 

Limited Partner OP Units Issued:

 

 

 

 

 

 

 

Other transactions

 

306,694

 

165,628

 

37,388

 

Conversion of Series A Junior Preference Units

 

82,977

 

148,092

 

 

Conversion of Limited Partner OP Units to EQR Common Shares

 

(1,744,463

)

(706,631

)

(933,937

)

Limited Partner OP Units Outstanding at December 31,

 

20,552,940

 

21,907,732

 

22,300,643

 

Limited Partner OP Units Ownership Interest in Operating Partnership

 

6.7

%

7.3

%

7.6

%

 

 

 

 

 

 

 

 

Limited Partner OP Units Issued:

 

 

 

 

 

 

 

Other transactions – per unit

 

$29.63

 

$27.55

 

$27.98

 

Other transactions – valuation

 

$9.1 million

 

$4.6 million

 

$1.0 million

 

Conversion of Series A Junior Preference Units – per unit

 

$24.50

 

$24.50

 

 

Conversion of Series A Junior Preference Units – valuation

 

$2.0 million

 

$3.6 million

 

 

 

In February 1998, EQR filed and the SEC declared effective a Form S-3 Registration Statement to register $1.0 billion of equity securities.  In addition, EQR carried over $272.4 million related to a prior registration statement.  As of December 31, 2004, $956.5 million in equity securities remained available for issuance under this registration statement.  Per the terms of ERPOP’s partnership agreement, EQR contributes the net proceeds of all equity offerings to the capital of the Operating Partnership in exchange for additional OP Units (on a one-for-one Common Share per OP Unit basis) or preference units (on a one-for-one preferred share per preference unit basis).

 

During October 2002, EQR repurchased 5,092,300 of its Common Shares on the open market at an average price of $22.58 per share.  EQR paid approximately $115.0 million for these shares, which were retired subsequent to the repurchase.  Concurrent with this transaction, the Operating Partnership repurchased and retired 5,092,300 OP Units previously issued to EQR.

 

The limited partners of the Operating Partnership as of December 31, 2004 include various individuals and entities that contributed their properties to the Operating Partnership in exchange for OP Units.  Subject to certain restrictions, the Limited Partners may exchange their OP Units for EQR Common Shares on a one-for-one basis.

 

EQR contributes all net proceeds from its various equity offerings (including proceeds from exercise of options for EQR Common Shares) to the Operating Partnership.  In return for those contributions, EQR receives a number of OP Units in ERPOP equal to the number of Common Shares it has issued in the equity offering (or in the case of a preferred equity offering, a number of preference units in ERPOP equal in number and having the same terms as the preferred shares issued in the equity offering).

 

The following table presents the Operating Partnership’s issued and outstanding “Preference Units” as of December 31, 2004 and 2003:

 

F-21



 

 

 

 

 

 

 

Annual Dividend  Rate per Unit (3)

 

Amounts in thousands

 

 

 

Redemption Date (1)(2)

 

Conversion Rate (2)

 

 

December 31, 2004

 

December 31, 2003

 

Preference Units:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9 1/8% Series B Cumulative Redeemable Preference Units; liquidation value $250 per unit; 500,000 units issued and outstanding at December 31, 2004 and December 31, 2003

 

10/15/05

 

N/A

 

$

22.81252

 

$

125,000

 

$

125,000

 

 

 

 

 

 

 

 

 

 

 

 

 

9 1/8% Series C Cumulative Redeemable Preference Units; liquidation value $250 per unit; 460,000 units issued and outstanding at December 31, 2004 and December 31, 2003

 

9/9/06

 

N/A

 

$

22.81252

 

115,000

 

115,000

 

 

 

 

 

 

 

 

 

 

 

 

 

8.60% Series D Cumulative Redeemable Preference Units; liquidation value $250 per unit; 700,000 units issued and outstanding at December 31, 2004 and December 31, 2003

 

7/15/07

 

N/A

 

$

21.50

 

175,000

 

175,000

 

 

 

 

 

 

 

 

 

 

 

 

 

7.00% Series E Cumulative Convertible Preference Units; liquidation value $25 per unit; 811,724 and 2,192,490 units issued and outstanding at December 31, 2004 and December 31, 2003, respectively

 

11/1/98

 

1.1128

 

$

1.75

 

20,293

 

54,812

 

 

 

 

 

 

 

 

 

 

 

 

 

7.00% Series H Cumulative Convertible Preference Units; liquidation value $25 per unit; 36,934 and 44,028 units issued and outstanding at December 31, 2004 and December 31, 2003, respectively

 

6/30/98

 

1.4480

 

$

1.75

 

923

 

1,101

 

 

 

 

 

 

 

 

 

 

 

 

 

8.29% Series K Cumulative Redeemable Preference Units; liquidation value $50 per unit; 1,000,000 units issued and outstanding at December 31, 2004 and December 31, 2003

 

12/10/26

 

N/A

 

$

4.145

 

50,000

 

50,000

 

 

 

 

 

 

 

 

 

 

 

 

 

6.48% Series N Cumulative Redeemable Preference Units; liquidation value $250 per unit; 600,000 units issued and outstanding at December 31, 2004 and December 31, 2003

 

6/19/08

 

N/A

 

$

16.20

 

150,000

 

150,000

 

 

 

 

 

 

 

 

 

$

636,216

 

$

670,913

 

 


(1)          On or after the redemption date, redeemable preference units (Series B, C, D, K, and N) may be redeemed for cash at the option of the Operating Partnership, in whole or in part, at a redemption price equal to the liquidation price per unit, plus accrued and unpaid distributions, if any, in conjunction with the concurrent redemption of the corresponding EQR Preferred Shares.

 

(2)          On or after the redemption date, convertible preference units (Series E & H) may be redeemed under certain circumstances at the option of the Operating Partnership for cash or OP Units, in whole or in part, at various redemption prices per unit based upon the contractual conversion rate, plus accrued and unpaid distributions, if any, in conjunction with the concurrent redemption/conversion of the corresponding EQR Preferred Shares.

 

(3)          Dividends on all series of Preference Units are payable quarterly at various pay dates.  Dividend rates listed for Series B, C, D and N are Preference Unit rates and the equivalent depositary unit annual dividend rates are $2.281252, $2.281252, $2.15 and $1.62, respectively.

 

On June 19, 2003. the Operating Partnership redeemed all of its outstanding Series L Cumulative Redeemable Preference Units at liquidation value for total cash consideration of $100.0 million in conjunction with the concurrent redemption of the corresponding EQR Preferred Share.  The Operating Partnership did not incur any original issuance costs as these units were issued by Merry Land & Investment Company, Inc. prior to its merger with the Company.

 

On June 19, 2003, EQR issued 600,000 Series N Cumulative Redeemable Preferred Shares in a public offering.  The Company received $145.3 million in net proceeds from this offering after payment of

 

F-22



 

the underwriters’ fee.  These net proceeds were contributed by EQR to the Operating Partnership in exchange for 600,000 of the Operating Partnership’s 6.48% Series N Cumulative Redeemable Preference Units.

 

On December 26, 2003, the Operating Partnership redeemed the remaining outstanding Series G Convertible Cumulative Preference Units for cash consideration of $295.3 million, which included the liquidation value of $287.0 million and a cash redemption premium of $8.3 million.  This redemption was completed in conjunction with the concurrent redemption of the corresponding EQR Preferred Share.  The Operating Partnership recorded the $8.3 million cash redemption premium along with the write-off of $11.9 million in original issuance costs as a premium on redemption of Preference Units in the accompanying consolidated statements of operations.

 

The following table presents the issued and outstanding “Preference Interests” as of December 31, 2004 and December 31, 2003:

 

 

 

 

 

 

 

Annual Dividend Rate per Unit (3)

 

Amounts in thousands

 

 

 

Redemption Date (1)(2)

 

Conversion Rate (2)

 

 

December 31, 2004

 

December 31, 2003

 

Preference Interests:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8.00% Series A Cumulative Redeemable Preference Interests; liquidation value $50 per unit; 0 and 800,000 units issued and outstanding at December 31, 2004 and December 31, 2003, respectively

 

10/01/04

 

N/A

 

 

(4)

$

 

$

40,000

 

 

 

 

 

 

 

 

 

 

 

 

 

8.50% Series B Cumulative Redeemable Preference Units; liquidation value $50 per unit; 1,100,000 units issued and outstanding at December 31, 2004 and December 31, 2003 (5)

 

03/03/05

 

N/A

 

$

4.25

 

55,000

 

55,000

 

 

 

 

 

 

 

 

 

 

 

 

 

8.50% Series C Cumulative Redeemable Preference Units; liquidation value $50 per unit; 220,000 units issued and outstanding at December 31, 2004 and December 31, 2003 (6)

 

03/23/05

 

N/A

 

$

4.25

 

11,000

 

11,000

 

 

 

 

 

 

 

 

 

 

 

 

 

8.375% Series D Cumulative Redeemable Preference Units; liquidation value $50 per unit; 420,000 units issued and outstanding at December 31, 2004 and December 31, 2003

 

05/01/05

 

N/A

 

$

4.1875

 

21,000

 

21,000

 

 

 

 

 

 

 

 

 

 

 

 

 

8.50% Series E Cumulative Redeemable Preference Units; liquidation value $50 per unit; 1,000,000 units issued and outstanding at December 31, 2004 and December 31, 2003

 

08/11/05

 

N/A

 

$

4.25

 

50,000

 

50,000

 

 

 

 

 

 

 

 

 

 

 

 

 

8.375% Series F Cumulative Redeemable Preference Units; liquidation value $50 per unit; 180,000 units issued and outstanding at December 31, 2004 and December 31, 2003

 

05/01/05

 

N/A

 

$

4.1875

 

9,000

 

9,000

 

 

 

 

 

 

 

 

 

 

 

 

 

7.875% Series G Cumulative Redeemable Preference Units; liquidation value $50 per unit; 510,000 units issued and outstanding at December 31, 2004 and December 31, 2003

 

03/21/06

 

N/A

 

$

3.9375

 

25,500

 

25,500

 

 

 

 

 

 

 

 

 

 

 

 

 

7.625% Series H Cumulative Convertible Redeemable Preference Units; liquidation value $50 per unit; 190,000 units issued and outstanding at December 31, 2004 and December 31, 2003

 

03/23/06

 

1.5108

 

$

3.8125

 

9,500

 

9,500

 

 

 

 

 

 

 

 

 

 

 

 

 

7.625% Series I Cumulative Convertible Redeemable Preference Units; liquidation value $50 per unit; 270,000 units issued and outstanding at December 31, 2004 and December 31, 2003

 

06/22/06

 

1.4542

 

$

3.8125

 

13,500

 

13,500

 

 

 

 

 

 

 

 

 

 

 

 

 

7.625% Series J Cumulative Convertible Redeemable Preference Units; liquidation value $50 per unit; 230,000 units issued and outstanding at December 31, 2004 and December 31, 2003

 

12/14/06

 

1.4108

 

$

3.8125

 

11,500

 

11,500

 

 

 

 

 

 

 

 

 

$

206,000

 

$

246,000

 

 

F-23



 


(1)          On or after the fifth anniversary of the respective issuance (the “Redemption Date”), all of the Preference Interests may be redeemed for cash at the option of the Operating Partnership, in whole or in part, at any time or from time to time, at a redemption price equal to the liquidation preference of $50.00 per unit plus the cumulative amount of accrued and unpaid distributions, if any.

 

(2)          On or after the tenth anniversary of the respective issuance (the “Conversion Date”), all of the Preference Interests are exchangeable at the option of the holder (in whole but not in part) on a one-for-one basis for a respective reserved series of EQR Preferred Shares.  In addition, on or after the Conversion Date, the convertible Preference Interests (Series H, I & J) may be converted under certain circumstances at the option of the holder (in whole but not in part) to Common Shares based upon the contractual conversion rate, plus accrued and unpaid distributions, if any.

 

(3)          Dividends on all series of Preference Interests are payable quarterly on March 25th, June 25th, September 25th, and December 25th of each year.

 

(4)          On September 1, 2004, the Operating Partnership issued an irrevocable notice to redeem for cash on October 1, 2004 all 800,000 units of its 8.00% Series A Cumulative Redeemable Preference Interests.  The liquidation value of the preference interests was $40.0 million.  The Operating Partnership recorded a write-off of $1.1 million in original issuance costs as a premium on redemption of Preference Interests in the accompanying consolidated statements of operations.

 

(5)          On February 1, 2005, the Operating Partnership issued an irrevocable notice to redeem for cash on March 3, 2005 all 1.1 million units of its 8.50% Series B Cumulative Redeemable Preference Interests with a liquidation value of $55.0 million.  The Operating Partnership will record a write-off of approximately $1.4 million in original issuance costs as a premium on redemption of Preference Interests in the first quarter of 2005.

 

(6)          On February 7, 2005, the Operating Partnership issued an irrevocable notice to redeem for cash on March 23, 2005 all 220,000 units of its 8.50% Series C Cumulative Redeemable Preference Interests with a liquidation value of $11.0 million. The Operating Partnership will record a write-off of approximately $275,000 in original issuance costs as a premium on redemption of Preference Interests in the first quarter of 2005.

 

The following table presents the Operating Partnership’s issued and outstanding Junior Convertible Preference Units (the “Junior Preference Units”) as of December 31, 2004 and December 31, 2003:

 

 

 

 

 

 

 

Annual Dividend Rate per Unit (3)

 

Amounts in thousands

 

 

 

Redemption Date

 

Conversion Rate

 

 

December 31, 2004

 

December 31, 2003

 

Junior Preference Units:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series A Junior Convertible Preference Units; liquidation value $100 per unit; 0 and 20,333 units issued and outstanding at December 31, 2004 and December 31, 2003, respectively

 

 

(1)(4)

4.0816

 

$

5.469344

 

$

 

$

2,033

 

 

 

 

 

 

 

 

 

 

 

 

 

Series B Junior Convertible Preference Units; liquidation value $25 per unit; 7,367 units issued and outstanding at December 31, 2004 and December 31, 2003

 

 

(2)

 

(2)

$

2.000000

 

184

 

184

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

184

 

$

2,217

 

 


(1)          On the fifth anniversary of the respective issuance (the “Redemption Date”), the Series A Junior Preference Units shall be automatically converted into OP Units based upon the conversion rate.  Prior to the Redemption Date, the Operating Partnership or the holders may elect to convert the Series A Junior Preference Units to OP Units under certain circumstances based upon the conversion rate.

 

F-24



 

(2)   On or after the tenth anniversary of the issuance (the “Redemption Date”), the Series B Junior Preference Units may be converted into OP Units at the option of the Operating Partnership based on the contractual conversion rate.  Prior to the Redemption Date, the holders may elect to convert the Series B Junior Preference Units to OP Units under certain circumstances based on the contractual conversion rate.  The contractual conversion rate is based upon a ratio dependent upon the closing price of EQR’s Common Shares.

 

(3)   Dividends on both series of Junior Preference Units are payable quarterly at various pay dates.

 

(4)   On December 22, 2003, 36,283 Series A Junior Preference Units with a liquidation value of $3.6 million issued on December 22, 1998 automatically converted to 148,092 OP Units.  On June 29, 2004, 20,333 Series A Junior Preference Units with a liquidation value of $2.0 million issued on June 29, 1999 automatically converted to 82,977 OP Units.

 

4.             Real Estate

 

The following table summarizes the carrying amounts for investment in real estate (at cost) as of December 31, 2004 and 2003 (Amounts are in thousands):

 

 

 

2004

 

2003

 

Land

 

$

2,183,818

 

$

1,845,547

 

Buildings and Improvements

 

11,667,787

 

10,415,679

 

Furniture, Fixtures and Equipment

 

683,113

 

602,647

 

Construction in Progress (excluding land)

 

160,986

 

2,960

 

Construction in Progress (land)

 

156,917

 

7,546

 

Real Estate

 

14,852,621

 

12,874,379

 

Accumulated Depreciation

 

(2,599,827

)

(2,296,013

)

Real Estate, net

 

$

12,252,794

 

$

10,578,366

 

 

During the year ended December 31, 2004, the Operating Partnership acquired the entire equity interest in twenty-four properties containing 6,182 units from unaffiliated parties, inclusive of four additional units at two existing properties and a vacant land parcel, for a total purchase price of $913.2 million.

 

During the year ended December 31, 2004, the Operating Partnership also acquired the majority of the remaining third party equity interests it did not previously own in nineteen properties and two vacant land parcels.  These properties were previously accounted for under the equity method of accounting and subsequent to each purchase were consolidated.  The Operating Partnership recorded $960.3 million in investment in real estate and the following:

 

      Assumed $274.8 million in mortgage debt;

      Recorded $0.4 million of minority interests in partially owned properties;

      Reduced investments in unconsolidated entities by $608.7 million (inclusive of $339.7 million in mortgage debt paid off prior to closing);

      Assumed $27.2 million of other liabilities net of other assets acquired; and

      Paid cash of $49.2 million (net of cash acquired).

 

As previously noted, the Operating Partnership adopted FIN No. 46, as required, effective March 31, 2004.  The adoption required the consolidation of all previously unconsolidated development projects.  Accordingly, the Operating Partnership consolidated five completed properties, six projects which were under development at the time and various other vacant land parcels held for future development.  The Operating Partnership recorded $548.3 million in investment in real estate and the following:

 

F-25



 

      Consolidated $294.7 million in mortgage debt;

      Recorded $3.0 million of minority interests in partially owned properties;

      Reduced investments in unconsolidated entities by $235.0 million;

      Consolidated $19.2 million of other liabilities net of other assets acquired; and

      Consolidated $3.6 million of cash.

 

During the year ended December 31, 2003, the Operating Partnership acquired the entire equity interest in seventeen properties containing 5,200 units from unaffiliated parties, inclusive of two additional units at an existing property, for a total purchase price of $684.1 million.

 

During the year ended December 31, 2003, the Operating Partnership also acquired the majority of the remaining third party equity interests it did not previously own in eleven properties.  These properties were previously accounted for under the equity method of accounting and subsequent to each purchase were consolidated.  The Operating Partnership recorded $111.1 million in investment in real estate and the following:

 

      Assumed $51.6 million in mortgage debt;

      Issued 153,851 OP Units having a value of $4.2 million;

      Recorded $42,000 of minority interests in partially owned properties;

      Reduced investments in unconsolidated entities by $34.9 million;

      Assumed $27.2 million of other liabilities net of other assets acquired; and

      Consolidated and/or received net cash of $6.9 million.

 

During the year ended December 31, 2004, the Operating Partnership disposed of the following to unaffiliated parties (including two vacant land parcels and various individual condominium units) (sales price in thousands):

 

 

 

Properties

 

Units

 

Sales Price

 

Wholly Owned Properties

 

48

 

12,984

 

$

847.5

 

Partially Owned Properties (Consolidated)

 

6

 

1,655

 

138.6

 

Unconsolidated Properties

 

4

 

497

 

6.9

 

 

 

58

 

15,136

 

$

993.0

 

 

The Operating Partnership recognized a net gain on sales of discontinued operations of approximately $323.9 million and a net gain on sales of unconsolidated entities of approximately $4.6 million on the above sales.

 

During the year ended December 31, 2003, the Operating Partnership disposed of the following to unaffiliated parties (including various individual condominium units) (sales price in thousands):

 

 

 

Properties

 

Units

 

Sales Price

 

Wholly Owned Properties

 

91

 

22,698

 

$

1,190.5

 

Partially Owned Properties (Consolidated)

 

3

 

465

 

13.6

 

Unconsolidated Properties

 

2

 

323

 

13.9

 

 

 

96

 

23,486

 

$

1,218.0

 

 

The Operating Partnership recognized a net gain on sales of discontinued operations of approximately $310.7 million and a net gain on sales of unconsolidated entities of approximately $4.9 million on the above sales.

 

F-26



 

5.             Commitments to Acquire/Dispose of Real Estate

 

As of February 2, 2005, in addition to the properties that were subsequently acquired as discussed in Note 21, the Operating Partnership had entered into separate agreements to acquire three multifamily properties containing 827 units from unaffiliated parties.  The Operating Partnership expects a combined purchase price of approximately $90.0 million.

 

As of February 2, 2005, in addition to the properties that were subsequently disposed of as discussed in Note 21, the Operating Partnership had entered into separate agreements to dispose of seventeen multifamily properties containing 4,638 units and two vacant land parcels to unaffiliated parties.  The Operating Partnership expects a combined disposition price of approximately $324.7 million.

 

The closings of these pending transactions are subject to certain contingencies and conditions, therefore, there can be no assurance that these transactions will be consummated or that the final terms thereof will not differ in material respects from those summarized in the preceding paragraphs.

 

6.             Investments in Unconsolidated Entities

 

The Operating Partnership has co-invested in various properties with unrelated third parties which are accounted for under the equity method of accounting.  The following table summarizes the Operating Partnership’s investments in unconsolidated entities as of December 31, 2004 (amounts in thousands except for project and unit amounts):

 

 

 

Institutional
Joint
Ventures

 

Lexford/
Other

 

Totals

 

Total projects

 

45

 

12

 

57

(1)

 

 

 

 

 

 

 

 

Total units

 

10,846

 

1,571

 

12,417

(1)

 

 

 

 

 

 

 

 

Operating Partnership’s ownership percentage of outstanding debt

 

25.0

%

11.0

%

 

 

 

 

 

 

 

 

 

 

Operating Partnership’s share of outstanding debt (2)

 

$

121,200

 

$

3,179

 

$

124,379

 

 


(1)   Totals exclude Fort Lewis Military Housing consisting of one property and 3,801 units, which is not accounted for under the equity method of accounting, but is included in the Operating Partnership’s property/unit counts at December 31, 2004.

 

(2)   All debt is non-recourse to the Operating Partnership.

 

7.             Deposits - - Restricted

 

The following table presents the deposits-restricted as of December 31, 2004 and 2003 (amounts in thousands):

 

F-27



 

 

 

2004

 

2003

 

 

 

 

 

 

 

Collateral enhancement for partially owned development loans

 

$

12,000

 

$

44,000

 

Tax-deferred (1031) exchange proceeds

 

 

27,731

 

Resident security, utility and other

 

70,194

 

62,021

 

 

 

 

 

 

 

Totals

 

$

82,194

 

$

133,752

 

 

8.             Mortgage Notes Payable

 

As of December 31, 2004, the Operating Partnership had outstanding mortgage indebtedness of approximately $3.2 billion.

 

During the year ended December 31, 2004, the Operating Partnership:

 

      Repaid $494.9 million of mortgage loans;

      Assumed/consolidated $665.4 million of mortgage debt on certain properties in connection with their acquisitions and/or consolidations;

      Obtained $467.5 million of mortgage loans on certain properties;

      Was released from $29.5 million of mortgage debt assumed by the purchaser on disposed properties; and

      Refinanced $130.0 million of mortgage notes and obtained the release of the property as collateral for the loan; therefore the loan was reclassified to notes, net.

 

As of December 31, 2004, scheduled maturities for the Operating Partnership’s outstanding mortgage indebtedness were at various dates through January 1, 2035.  At December 31, 2004, the interest rate range on the Operating Partnership’s mortgage debt was 1.89% to 12.465%.  During the year ended December 31, 2004, the weighted average interest rate on the Operating Partnership’s mortgage debt was 5.46%.

 

The historical cost, net of accumulated depreciation, of encumbered properties was $4.4 billion and $3.8 billion at December 31, 2004 and 2003, respectively.

 

Aggregate payments of principal on mortgage notes payable for each of the next five years and thereafter are as follows (amounts in thousands):

 

Year

 

Total

 

2005

 

$

173,303

 

2006

 

287,427

 

2007

 

294,470

 

2008

 

496,939

 

2009

 

540,251

 

Thereafter

 

1,374,349

 

Total

 

$

3,166,739

 

 

As of December 31, 2003, the Operating Partnership had outstanding mortgage indebtedness of approximately $2.7 billion.

 

During the year ended December 31, 2003, the Operating Partnership:

 

      Repaid $432.9 million of mortgage loans;

      Assumed $141.1 million of mortgage debt on certain properties in connection with their

 

F-28



 

acquisitions and/or consolidations;

      Obtained $111.2 million of mortgage loans on certain properties; and

      Was released from $53.3 million of mortgage debt assumed by the purchaser on disposed properties.

 

As of December 31, 2003, scheduled maturities for the Operating Partnership’s outstanding mortgage indebtedness were at various dates through November 1, 2033.  At December 31, 2003, the interest rate range on the Operating Partnership’s mortgage debt was 1.06% to 12.465%.  During the year ended December 31, 2003, the weighted average interest rate on the Operating Partnership’s mortgage debt was 5.80%.

 

9.             Notes

 

The following tables summarize the Operating Partnership’s unsecured note balances and certain interest rate and maturity date information as of and for the years ended December 31, 2004 and 2003, respectively:

 

December 31, 2004
(Amounts are in thousands)

 

Net Principal
Balance

 

Interest Rate
Ranges

 

Weighted
Average
Interest Rate

 

Maturity
Date Ranges

 

 

 

 

 

 

 

 

 

 

 

Fixed Rate Public Notes

 

$

3,031,677

 

4.75% - 7.75%

 

6.25

%

2005 - 2026

 

Fixed Rate Tax-Exempt Bonds

 

111,390

 

4.75% - 5.20%

 

5.07

%

2028 - 2029

 

 

 

 

 

 

 

 

 

 

 

Totals

 

$

3,143,067

 

 

 

 

 

 

 

 

December 31, 2003
(Amounts are in thousands)

 

Net Principal
Balance

 

Interest Rate
Ranges

 

Weighted
Average
Interest Rate

 

Maturity
Date Ranges

 

 

 

 

 

 

 

 

 

 

 

Fixed Rate Public Notes

 

$

2,528,894

 

4.86% - 7.75%

 

6.63

%

2004 - 2026

 

Fixed Rate Tax-Exempt Bonds

 

127,780

 

4.75% - 5.20%

 

5.07

%

2028 - 2029

 

 

 

 

 

 

 

 

 

 

 

Totals

 

$

2,656,674

 

 

 

 

 

 

 

 

The Operating Partnership’s unsecured public debt contains certain financial and operating covenants including, among other things, maintenance of certain financial ratios.  The Operating Partnership was in compliance with its unsecured public debt covenants for both the years ended December 31, 2004 and 2003.

 

In June 2003, the Operating Partnership filed and the SEC declared effective a Form S-3 registration statement to register $2.0 billion of debt securities.  In addition, the Operating Partnership carried over $280.0 million related to a prior registration statement.  As of December 31, 2004, $1.48 billion in debt securities remained available for issuance under this registration statement.

 

During the year ended December 31, 2004, the Operating Partnership:

 

      Issued $300.0 million of five-year 4.75% fixed-rate public notes, receiving net proceeds of $296.8 million;

      Issued $500.0 million of ten-year 5.25% fixed rate public notes, receiving net proceeds of $496.1 million;

      Repaid $415.0 million of fixed rate public notes at maturity;

      Repaid $20.7 million of other unsecured notes; and

 

F-29



 

      Obtained an unsecured floating rate loan with a total commitment of $300.0 million and an initial borrowing of $100.0 million on July 15, 2004.  This loan was paid off in full and terminated on September 14, 2004.

 

During the year ended December 31, 2003, the Operating Partnership:

 

      Issued $400.0 million of ten-year 5.20% fixed-rate public notes, receiving net proceeds of $397.5 million;

      Repaid $100.0 million of floating rate public notes at maturity;

      Repaid $50.0 million and $40.0 million of 6.65% and 6.875%, respectively, fixed rate public notes at maturity; and

      Repaid $4.5 million of other unsecured notes.

 

Aggregate payments of principal on unsecured notes payable for each of the next five years and thereafter are as follows (amounts in thousands):

 

Year

 

Total

 

2005 (1)

 

 

$

494,594

 

2006 (2)

 

 

204,190

 

2007

 

 

154,620

 

2008

 

 

130,000

 

2009

 

 

297,764

 

Thereafter

 

 

1,861,899

 

Total

 

 

$

3,143,067

 

 


(1)   Includes $300.0 million with a final maturity of 2015 that is putable/callable in 2005.

(2)   Includes $150.0 million with a final maturity of 2026 that is putable in 2006.

 

10.          Line of Credit

 

On May 30, 2002, the Operating Partnership obtained a three-year $700.0 million unsecured revolving credit facility maturing May 29, 2005.  Advances under the credit facility bear interest at variable rates based upon LIBOR at various interest periods, plus a spread dependent upon the Operating Partnership’s credit rating, or based upon bids received from the lending group.  EQR has guaranteed the Operating Partnership’s line of credit up to the maximum amount and for the full term of the facility.

 

As of December 31, 2004 and 2003, $150.0 million and $10.0 million, respectively, was outstanding and $65.4 million and $56.7 million, respectively, was restricted (dedicated to support letters of credit and not available for borrowing) on the credit facility.  During the years ended December 31, 2004 and 2003, the weighted average interest rate was 1.73% and 1.85%, respectively.

 

11.          Derivative Instruments

 

The following table summarizes the consolidated derivative instruments at December 31, 2004 (dollar amounts are in thousands):

 

F-30



 

 

 

Cash Flow
Hedges

 

Fair Value
Hedges

 

Offsetting
Receive
Floating
Swaps/Caps

 

Offsetting
Pay
Floating
Swaps/Caps

 

Development
Cash Flow
Hedges

 

Current Notional Balance

 

$

150,000

 

$

490,000

 

$

255,069

 

$

255,069

 

$

4,682

 

Lowest Possible Notional

 

$

150,000

 

$

490,000

 

$

91,052

 

$

91,052

 

$

6,700

 

Highest Possible Notional

 

$

150,000

 

$

490,000

 

$

255,069

 

$

255,069

 

$

34,625

 

Lowest Interest Rate

 

3.683

%

3.245

%

6.000

%

6.000

%

3.310

%

Highest Interest Rate

 

3.683

%

7.250

%

6.000

%

6.000

%

3.500

%

Earliest Maturity Date

 

2005

 

2005

 

2007

 

2007

 

2005

 

Latest Maturity Date

 

2005

 

2009

 

2007

 

2007

 

2006

 

Estimated Asset (Liability) Fair Value

 

$

(1,780

)

$

(6,137

)

$

28

 

$

(28

)

$

(15

)

 

During the year ended December 31, 2004, the Operating Partnership paid approximately $3.3 million to terminate five interest rate swaps in conjunction with the repayment of the underlying mortgage loans.  The Operating Partnership recognized a $1.9 million loss in connection with these terminations (included in loss from investments in unconsolidated entities as the losses occurred prior to the acquisition and/or consolidation of the respective properties – see further discussion in Notes 2 and 4).  The Operating Partnership also paid approximately $0.5 million to terminate two forward starting swaps in conjunction with the issuance of $300.0 million of five-year unsecured notes.  The $0.5 million cost has been deferred and will be recognized as additional interest expense over the five-year life of the unsecured notes.  The Operating Partnership also paid approximately $3.5 million to terminate ten forward starting swaps in conjunction with the issuance of $500.0 million of ten-year unsecured notes.  Approximately $3.3 million of the $3.5 million cost has been deferred and will be recognized as additional interest expense over the ten-year life of the unsecured notes.

 

On December 31, 2004, the net derivative instruments were reported at their fair value as other assets of approximately $1.3 million and as other liabilities of approximately $9.2 million.  As of December 31, 2004, there were approximately $21.0 million in deferred losses, net, included in accumulated other comprehensive loss.  Based on the estimated fair values of the net derivative instruments at December 31, 2004, the Operating Partnership may recognize an estimated $4.5 million of accumulated other comprehensive loss as additional interest expense during the twelve months ending December 31, 2005.

 

12.          Earnings Per OP Unit

 

The following tables set forth the computation of net income per OP Unit – basic and net income per OP Unit – diluted:

 

 

 

Year Ended December 31,

 

 

 

2004

 

2003

 

2002

 

 

 

(Amounts in thousands except per OP Unit amounts)

 

Numerator for net income per OP Unit – basic:

 

 

 

 

 

 

 

Income from continuing operations

 

$

187,111

 

$

213,061

 

$

235,512

 

Allocation to Preference Units

 

(53,746

)

(76,435

)

(76,615

)

Allocation to Preference Interests

 

(19,420

)

(20,211

)

(20,211

)

Allocation to Junior Preference Units

 

(70

)

(325

)

(325

)

Allocation to premium on redemption of Preference Units

 

 

(20,237

)

 

Allocation to premium on redemption of Preference Interests

 

(1,117

)

 

 

 

 

 

 

 

 

 

 

Income from continuing operations available to OP Units

 

112,758

 

95,853

 

138,361

 

Net gain on sales of discontinued operations

 

323,925

 

310,706

 

104,296

 

Discontinued operations, net

 

13,128

 

54,738

 

108,367

 

 

 

 

 

 

 

 

 

Numerator for net income per OP Unit – basic

 

$

449,811

 

$

461,297

 

$

351,024

 

 

F-31



 

 

 

Year Ended December 31,

 

 

 

2004

 

2003

 

2002

 

 

 

(Amounts in thousands except per OP Unit amounts)

 

 

 

 

 

 

 

 

 

Numerator for net income per OP Unit – diluted:

 

 

 

 

 

 

 

Income from continuing operations

 

$

187,111

 

$

213,061

 

$

235,512

 

Allocation to Preference Units

 

(53,746

)

(76,435

)

(76,615

)

Allocation to Preference Interests

 

(19,420

)

(20,211

)

(20,211

)

Allocation to Junior Preference Units

 

(70

)

(325

)

(325

)

Allocation to premium on redemption of Preference Units

 

 

(20,237

)

 

Allocation to premium on redemption of Preference Interests

 

(1,117

)

 

 

 

 

 

 

 

 

 

 

Income from continuing operations available to OP Units

 

112,758

 

95,853

 

138,361

 

Net gain on sales of discontinued operations

 

323,925

 

310,706

 

104,296

 

Discontinued operations, net

 

13,128

 

54,738

 

108,367

 

 

 

 

 

 

 

 

 

Numerator for net income per OP Unit – diluted

 

$

449,811

 

$

461,297

 

$

351,024

 

 

 

 

 

 

 

 

 

Denominator for net income per OP Unit – basic and diluted:

 

 

 

 

 

 

 

Denominator for net income per OP Unit – basic

 

300,683

 

294,523

 

294,637

 

Effect of dilutive securities:

 

 

 

 

 

 

 

Dilution for OP Units issuable upon assumed exercise/vesting of EQR’s share options/restricted shares

 

3,188

 

2,518

 

3,332

 

 

 

 

 

 

 

 

 

Denominator for net income per share – diluted

 

303,871

 

297,041

 

297,969

 

 

 

 

 

 

 

 

 

Net income per OP Unit – basic

 

$

1.50

 

$

1.57

 

$

1.19

 

Net income per OP Unit – diluted

 

$

1.48

 

$

1.55

 

$

1.18

 

 

 

 

 

 

 

 

 

Net income per OP Unit – basic:

 

 

 

 

 

 

 

Income from continuing operations available to OP Units

 

$

0.38

 

$

0.33

 

$

0.47

 

Net gain on sales of discontinued operations

 

1.08

 

1.05

 

0.35

 

Discontinued operations, net

 

0.04

 

0.19

 

0.37

 

 

 

 

 

 

 

 

 

Net income per OP Unit – basic

 

$

1.50

 

$

1.57

 

$

1.19

 

 

 

 

 

 

 

 

 

Net income per OP Unit – diluted:

 

 

 

 

 

 

 

Income from continuing operations available to OP Units

 

$

0.37

 

$

0.32

 

$

0.46

 

Net gain on sales of discontinued operations

 

1.07

 

1.05

 

0.35

 

Discontinued operations, net

 

0.04

 

0.18

 

0.37

 

 

 

 

 

 

 

 

 

Net income per OP Unit – diluted

 

$

1.48

 

$

1.55

 

$

1.18

 

 

Convertible preference interests/units that could be converted into 3,215,472, 14,745,904 and 15,335,977 weighted average Common Shares (which would be contributed to the Operating Partnership in exchange for OP Units) for the years ended December 31, 2004, 2003 and 2002, respectively, were outstanding but were not included in the computation of diluted earnings per OP Unit because the effects would be anti-dilutive.

 

For additional disclosures regarding the employee share options and restricted shares, see Notes 2 and 14.

 

F-32



 

13.          Discontinued Operations

 

The Operating Partnership has presented separately as discontinued operations in all periods the results of operations for all consolidated assets disposed of on or after January 1, 2002 (the date of adoption of SFAS No. 144).

 

The components of discontinued operations are outlined below and include the results of operations for the respective periods that the Operating Partnership owned such assets during each of the years ended December 31, 2004, 2003, and 2002.

 

 

 

Year Ended December 31,

 

 

 

2004

 

2003

 

2002

 

 

 

(Amounts in thousands)

 

 

 

 

 

REVENUES

 

 

 

 

 

 

 

Rental income

 

$

61,790

 

$

219,370

 

$

338,729

 

Furniture income

 

 

 

1,361

 

Total revenues

 

61,790

 

219,370

 

340,090

 

 

 

 

 

 

 

 

 

EXPENSES (1)

 

 

 

 

 

 

 

Property and maintenance

 

27,977

 

77,233

 

101,097

 

Real estate taxes and insurance

 

7,009

 

23,611

 

34,016

 

Property management

 

111

 

103

 

162

 

Depreciation

 

12,374

 

56,571

 

83,376

 

Furniture expenses

 

 

 

1,303

 

Total expenses

 

47,471

 

157,518

 

219,954

 

 

 

 

 

 

 

 

 

Discontinued operating income

 

14,319

 

61,852

 

120,136

 

 

 

 

 

 

 

 

 

Interest and other income

 

260

 

322

 

83

 

Interest (2):

 

 

 

 

 

 

 

Expense incurred, net

 

(898

)

(6,346

)

(11,600

)

Amortization of deferred financing costs

 

(553

)

(1,090

)

(252

)

 

 

 

 

 

 

 

 

Discontinued operations, net

 

$

13,128

 

$

54,738

 

$

108,367

 

 

 

 

 

 

 

 

 

 

 

 


(1)  Includes expenses paid in the current period for properties sold in prior periods related to the Operating Partnership’s period of ownership.

(2)  Interest includes only specific amounts from each property sold.

 

 

For the properties sold during 2004 (excluding condominium conversion properties), the investment in real estate, net of accumulated depreciation, and the mortgage notes payable balances at December 31, 2003 were $500.0 million and $94.9 million, respectively.

 

On January 11, 2002, the Operating Partnership disposed of its furniture rental business for $30.0 million in cash and received net proceeds of $28.7 million.  After giving effect to a previously recorded impairment loss, no gain/loss on sale was recognized as the net book value at the sale date approximated the sales price.

 

14.          Share Incentive Plans

 

Any Common Shares issued pursuant to EQR’s incentive equity compensation and employee share purchase plans will result in the Operating Partnership issuing OP Units to EQR on a one-for-one basis, with the Operating Partnership receiving the net cash proceeds of such issuances.

 

F-33



 

On May 15, 2002, the shareholders of EQR approved the Company’s 2002 Share Incentive Plan.  The maximum aggregate number of awards that may be granted under this plan may not exceed 7.5% of the Company’s outstanding Common Shares calculated on a “fully diluted” basis and determined annually on the first day of each calendar year.  As of January 1, 2005, this amount equaled 23,069,873, of which 17,683,625 is available for future issuance.  No awards may be granted under the 2002 Share Incentive Plan after February 20, 2012.

 

Pursuant to the 2002 Share Incentive Plan and the Fifth Amended and Restated 1993 Share Option and Share Award Plan (collectively the “Share Incentive Plans”), officers, trustees, key employees and consultants of the Company may be offered the opportunity to acquire Common Shares through the grant of share options (“Options”) including non-qualified share options (“NQSOs”), incentive share options (“ISOs”) and share appreciation rights (“SARs”), or may be granted restricted or non-restricted shares.  Additionally, officers and key employees of the Company may be awarded Common Shares, subject to conditions and restrictions as described in the Share Incentive Plans.  Finally, certain executive officers of the Company are subject to the Company’s performance based restricted share plan.  Options, SARs, restricted shares and performance shares are sometimes collectively referred to herein as “Awards”.

 

The Options generally are granted at the fair market value of the Company’s Common Shares at the date of grant, vest over a three year period, are exercisable upon vesting and expire ten years from the date of grant.  The exercise price for all Options under the Share Incentive Plans shall not be less than the fair market value of the underlying Common Shares at the time the Option is granted.  The Fifth Amended and Restated 1993 Share Option and Share Award Plan will terminate at such time as all outstanding Awards have expired or have been exercised/vested.  The Board of Trustees may at any time amend or terminate the Share Incentive Plans, but termination will not affect Awards previously granted.  Any Options which had vested prior to such a termination would remain exercisable by the holder thereof.

 

As to the Options that have been granted through December 31, 2004, generally, one-third are exercisable one year after the initial grant, one-third are exercisable two years following the date such Options were granted and the remaining one-third are exercisable three years following the date such Options were granted.

 

As to the restricted shares that have been awarded through December 31, 2004, these shares generally vest three years from the award date.  During the three-year period of restriction, the employee receives quarterly dividend payments on their shares.  The Company’s unvested restricted shareholders receive dividends at the same rate and on the same date as any other Common Share holder.  In addition, the Company’s unvested restricted shareholders have the same voting rights as any other Common Share holder.  As a result, dividends paid on unvested restricted shares are included as a distribution in excess of accumulated earnings and have not been considered in reducing net income available to OP Units in a manner similar to the Operating Partnership’s preference unit dividends for the earnings per OP Unit calculation.  If employment is terminated prior to the lapsing of the restriction, the shares are canceled.

 

In addition, each year the Company’s executive officers receive performance-based awards.  The executive officers have the opportunity to earn in Common Shares an amount as little as 0% to as much as 225% of the target number of performance-based awards.  The owners of performance-based awards have no right to vote, receive dividends or transfer the awards until Common Shares are issued in exchange for the awards.  The number of Common Shares the executive officer actually receives on the third anniversary of the grant date will depend on the excess, if any, by which the Company’s Average Annual Return (i.e., the average of the Common Share dividends declared during each year as a percentage of the Common Share price as of the first business day of the first performance year and the average percentage increase in funds from operations (“FFO”) for each calendar year on a per share basis

 

F-34



 

over the prior year) for the three performance years exceeds the average of the 10-year Treasury Note interest rate as of the first business day in January of each performance year (the “T-Note Rate”).

 

If the Company’s Average Annual Return exceeds the T-Note Rate by:

 

Less than 0.99%

 

1-1.99%

 

2%

 

3%

 

4%

 

5%

 

6%

 

Greater than 7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Then the executive officer will receive Common Shares equal to the target number of awards times the following %:

 

0%

 

50%

 

100%

 

115%

 

135%

 

165%

 

190%

 

225%

 

 

Fifty percent of the Common Shares to which an executive officer may be entitled under the performance share grants will vest, subject to the executive’s continued employment with the Company, on the third anniversary of the award (which will be the date the Common Shares are issued); twenty-five percent will vest on the fourth anniversary and the remaining twenty-five percent will vest on the fifth anniversary.  The Common Shares will also fully vest upon the executive’s death, retirement at or after age 62, disability or upon a change in control of the Company.

 

The following table summarizes information regarding both the restricted and performance-based share plans for the three years ended December 31, 2004, 2003 and 2002:

 

 

 

EQR Restricted/ Performance Share Awards Granted, Net of Cancellations

 

Weighted Average Grant Price

 

 

Compensation Expense

 

 

 

Year

 

 

 

General and Administrative

 

Property Management

 

Dividends Incurred

 

2004

 

515,622

 

$

29.28

 

$

6.3 million

 

$

6.2 million

 

$

2.5 million

 

2003

 

900,555

 

$

23.58

 

$

5.5 million

 

$

5.6 million

 

$

2.5 million

 

2002

 

885,967

 

$

27.22

 

$

16.2 million

 

$

9.6 million

 

$

2.9 million

 

 

Prior to 2003, the Company had chosen to account for its stock-based compensation in accordance with APB No. 25, Accounting for Stock Issued to Employees, which resulted in no compensation expense for options issued with an exercise price equal to or exceeding the market value of the Company’s Common Shares on the date of grant (intrinsic method).  The Company has elected to account for its stock-based compensation in accordance with SFAS No. 123 and its amendment (SFAS No. 148), Accounting for Stock Based Compensation, effective in the first quarter of 2003, which resulted in compensation expense being recorded based on the fair value of the stock compensation granted.

 

Compensation expense related to restricted and performance-based share grants was previously recognized in accordance with APB No. 25.  The adoption of SFAS No. 123 does not significantly change the amount of compensation expense recognized for these grants.

 

See Note 2 for additional information regarding the Company’s stock-based compensation.

 

The table below summarizes the Option activity of the Share Incentive Plans and options assumed in connection with mergers (the “Merger Options”) for the three years ended December 31, 2004, 2003 and 2002:

 

F-35



 

 

 

Common Shares Subject to Options

 

Weighted Average Exercise Price Per Option

 

Balance at December 31, 2001

 

12,165,247

 

$

22.59

 

Options granted

 

2,270,220

 

$

27.24

 

Options exercised

 

(1,425,494

)

$

20.36

 

Merger Options exercised

 

(13,621

)

$

19.66

 

Options canceled

 

(177,536

)

$

24.90

 

Balance at December 31, 2002

 

12,818,816

 

$

23.63

 

Options granted (1993 plan)

 

665,304

 

$

23.55

 

Options granted (2002 plan)

 

2,217,124

 

$

23.59

 

Options exercised (1993 plan)

 

(2,696,110

)

$

20.61

 

Options exercised (2002 plan)

 

(500,000

)

$

23.55

 

Merger Options exercised

 

(52,995

)

$

19.55

 

Options canceled (1993 plan)

 

(324,298

)

$

25.08

 

Options canceled (2002 plan)

 

(42,242

)

$

23.55

 

Balance at December 31, 2003

 

12,085,599

 

$

24.27

 

Options granted (2002 plan)

 

2,254,570

 

$

29.33

 

Options exercised (1993 plan)

 

(2,920,057

)

$

23.75

 

Options exercised (2002 plan)

 

(423,866

)

$

23.55

 

Merger Options exercised

 

(6,836

)

$

20.14

 

Options canceled (1993 plan)

 

(90,436

)

$

23.44

 

Options canceled (2002 plan)

 

(79,751

)

$

28.02

 

Balance at December 31, 2004

 

10,819,223

 

$

25.48

 

 

The following table summarizes information regarding options outstanding at December 31, 2004:

 

 

 

Options Outstanding

 

Options Exercisable

 

Range of Exercise Prices

 

Options

 

Weighted Average Remaining Contractual Life in Years

 

Weighted Average Exercise Price

 

Options

 

Weighted Average Exercise Price

 

$6.68 to $10.01

 

92

 

2.0

 

$

9.55

 

92

 

$

9.55

 

$10.01 to $13.35

 

1,892

 

1.1

 

$

12.12

 

1,892

 

$

12.12

 

$13.35 to $16.69

 

305,634

 

1.1

 

$

15.33

 

305,634

 

$

15.33

 

$16.69 to $20.03

 

6,018

 

4.2

 

$

18.63

 

6,018

 

$

18.63

 

$20.03 to $23.37

 

1,554,006

 

4.1

 

$

20.76

 

1,554,006

 

$

20.76

 

$23.37 to $26.70

 

3,998,492

 

5.8

 

$

24.67

 

2,739,319

 

$

25.18

 

$26.70 to $30.04

 

4,864,462

 

7.8

 

$

28.19

 

2,244,481

 

$

27.45

 

$30.04 to $33.38

 

88,627

 

9.6

 

$

31.38

 

 

 

$6.68 to $33.38

 

10,819,223

 

6.4

 

$

25.48

 

6,851,442

 

$

24.47

 

 

As of December 31, 2003 and 2002, 8,274,915 Options (with a weighted average exercise price of $23.86) and 8,252,203 Options (with a weighted average exercise price of $22.25) were exercisable, respectively.

 

F-36



 

15.          Employee Plans

 

The Company established an Employee Share Purchase Plan (the “ESPP”) to provide employees and EQR trustees the ability to annually acquire up to $100,000 of Common Shares of EQR.  In 2003, EQR’s shareholders approved an increase in the aggregate number of Common Shares available under the ESPP to 7,000,000 (from 2,000,000).  The Company has 4,770,937 Common Shares available for purchase under the ESPP at December 31, 2004.  The Common Shares may be purchased quarterly at a price equal to 85% of the lesser of: (a) the closing price for a share on the last day of such quarter; and (b) the greater of: (i) the closing price for a share on the first day of such quarter, and (ii) the average closing price for a share for all the business days in the quarter.  The following table summarizes information regarding the Common Shares issued under the ESPP (the net proceeds noted below were contributed to the Operating Partnership in exchange for OP Units):

 

 

 

Year Ended December 31,

 

 

 

2004

 

2003

 

2002

 

 

 

(Amounts in thousands except share and per share amounts)

 

 

 

 

 

 

 

 

 

Shares issued

 

275,616

 

289,274

 

324,238

 

Issuance price ranges

 

$23.35 – $27.39

 

$20.64 – $24.74

 

$21.65 – $24.43

 

Issuance proceeds

 

$6,853

 

$6,324

 

$7,377

 

 

The Company established a defined contribution plan (the “401(k) Plan”) to provide retirement benefits for employees that meet minimum employment criteria.  The Operating Partnership, on behalf of the Company, matches dollar for dollar up to the first 2% of eligible compensation that a participant contributes to the 401(k) Plan (4% for 2002 and prior years).  Participants are vested in the Company’s contributions over five years.  The Operating Partnership, on behalf of the Company, made contributions in the amount of $1.5 million and $3.5 million for the years ended December 31, 2003 and 2002, respectively, and expects to make contributions in the amount of approximately $2.0 million for the year ended December 31, 2004.

 

The Operating Partnership, on behalf of the Company, may also elect to make an annual discretionary profit-sharing contribution as a percentage of each individual employee’s eligible compensation under the 401(k) Plan.  The Operating Partnership, on behalf of the Company, did not make a contribution for the years ended December 31, 2004, 2003 or 2002.

 

The Company established a supplemental executive retirement savings plan (the “SERP”) to provide certain officers and EQR trustees an opportunity to defer a portion of their eligible compensation in order to save for retirement.  The SERP is restricted to investments in EQR Common Shares, certain marketable securities that have been specifically approved, and cash equivalents.  The deferred compensation liability represented in the SERP and the securities issued to fund such deferred compensation liability are consolidated by the Operating Partnership and carried on the Operating Partnership’s balance sheet, and the Company’s Common Shares held in the SERP are accounted for as a reduction to General Partner’s capital.

 

16.          Distribution Reinvestment and Share Purchase Plan

 

On November 3, 1997, the Company filed with the SEC a Form S-3 Registration Statement to register 14,000,000 Common Shares pursuant to a Distribution Reinvestment and Share Purchase Plan (the “DRIP Plan”).  The registration statement was declared effective on November 25, 1997.  The Company has 11,571,446 Common Shares available for issuance under the DRIP Plan at December 31, 2004.

 

The DRIP Plan provides holders of record and beneficial owners of Common Shares and Preferred Shares with a simple and convenient method of investing cash distributions in additional Common Shares

 

F-37



 

(which is referred to herein as the “Dividend Reinvestment – DRIP Plan”).  Common Shares may also be purchased on a monthly basis with optional cash payments made by participants in the DRIP Plan and interested new investors, not currently shareholders of EQR, at the market price of the Common Shares less a discount ranging between 0% and 5%, as determined in accordance with the DRIP Plan (which is referred to herein as the “Share Purchase – DRIP Plan”).  Common Shares purchased under the DRIP Plan may, at the option of EQR, be directly issued by EQR or purchased by EQR’s transfer agent in the open market using participants’ funds.  The net proceeds from any Common Share issuances are contributed to the Operating Partnership in exchange for OP Units.

 

17.          Transactions with Related Parties

 

Pursuant to the terms of the partnership agreement for the Operating Partnership, the Operating Partnership is required to reimburse EQR for all expenses incurred by EQR in excess of income earned by EQR through its indirect 1% ownership of various entities.  Amounts paid on behalf of EQR are reflected in the consolidated statements of operations as general and administrative expenses.

 

The Operating Partnership provided asset and property management services to certain related entities for properties not owned by the Operating Partnership.  Fees received for providing such services were approximately $0.2 million, $0.3 million and $0.7 million for the years ended December 31, 2004, 2003 and 2002, respectively.

 

The Operating Partnership reimbursed EQR’s Chief Operating Officer for the actual operating costs (excluding acquisition costs) of operating his personal aircraft for himself and other employees on Operating Partnership business.  Amounts incurred were approximately $0.3 million, $0.2 million and $0.5 million for the years ended December 31, 2004, 2003 and 2002, respectively.

 

The Operating Partnership leases its corporate headquarters from an entity controlled by EQR’s Chairman of the Board of Trustees.  Amounts incurred for such office space for the years ended December 31, 2004, 2003 and 2002, respectively, were approximately $1.9 million, $1.7 million and $1.6 million.  The Operating Partnership believes these amounts equal market rates for such space.

 

The Company had the following additional non-continuing related party transactions:

 

      The Operating Partnership leased space in an office building in Augusta, Georgia indirectly owned by one of EQR’s trustees since May 2003 and directly owned by an entity affiliated with the same EQR trustee from 1998 to 2003 (individual was a trustee through May 2004).  Amounts incurred for such office space were approximately $0.2 million, $0.2 million and $0.1 million for the years ended December 31, 2004, 2003 and 2002, respectively;

 

      Certain executive officers of EQR purchased Common Shares which were financed with loans made by the Company, all of which were repaid in full in 2002;

 

      The Operating Partnership made consulting payments to two former EQR trustees (individuals were trustees through May 2003) of approximately $0.2 million during the year ended December 31, 2002; and

 

      The Operating Partnership paid legal fees to a law firm of which one of EQR’s former trustees (individual was a trustee through May 2002) is a partner of approximately $0.3 million during the year ended December 31, 2002.

 

18.          Commitments and Contingencies

 

The Operating Partnership, as an owner of real estate, is subject to various Federal, state and local

 

F-38



 

environmental laws.  Compliance by the Operating Partnership with existing laws has not had a material adverse effect on the Operating Partnership.  However, the Operating Partnership cannot predict the impact of new or changed laws or regulations on its current properties or on properties that it may acquire in the future.

 

In August 2004, the Operating Partnership tried a class action lawsuit in Palm Beach County, Florida regarding certain charges made to residents who terminated their leases early or failed to provide sufficient notice of intent to vacate.  In December 2004, the Court issued a Findings of Fact and Conclusions of Law holding those fees legally uncollectible under Florida law. In recognition of the Findings of Fact and Conclusions of Law, which awarded damages and interest to the class in the amount of approximately $1.6 million, the Operating Partnership established a reserve of approximately $1.6 million and correspondingly recorded this as a general and administrative expense. Due to pending appeals, the award is neither final nor enforceable.  Accordingly, it is not possible to determine or predict the ultimate outcome of the case.  While no assurances can be given, the Operating Partnership does not believe that this lawsuit, if the ultimate outcome is unfavorable, will have a material adverse effect on the Operating Partnership.

 

The Operating Partnership does not believe there is any other litigation pending or threatened against the Operating Partnership which, individually or in the aggregate, reasonably may be expected to have a material adverse effect on the Operating Partnership.

 

During the year ended December 31, 2004, the Operating Partnership established a reserve and recorded a corresponding expense of $15.2 million in estimated uninsured property damage at certain of its properties primarily located in Florida caused by Hurricanes Charley, Frances, Ivan and Jeanne (included in rents received in advance and other liabilities and real estate taxes and insurance expense on the consolidated balance sheets and statements of operations, respectively).  Of this amount, approximately $9.4 million had been spent for hurricane related repairs through December 31, 2004.

 

As of December 31, 2004 the Operating Partnership has five projects totaling 1,306 units in various stages of development with estimated completion dates ranging through September 30, 2006. The three development agreements currently in place have the following key terms:

 

      The first development partner has the right, at any time following completion of a project subject to the agreement, to stipulate a value for such project and offer to sell its interest in the project to the Operating Partnership based on such value.  If the Operating Partnership chooses not to purchase the interest, the Operating Partnership must agree to a sale of the project to an unrelated third party at such value.  The Operating Partnership’s partner must exercise this right as to all projects subject to the agreement within five years after the receipt of the final certificate of occupancy on the last developed property.  In connection with this development agreement, the Operating Partnership has an obligation to provide up to $40.0 million in credit enhancements to guarantee a portion of the third party construction financing.  As of February 2, 2005, the Operating Partnership had set-aside $5.0 million towards this credit enhancement.  The Operating Partnership would be required to perform under this agreement only if there was a material default under a third party construction mortgage agreement.  This agreement expires no later than December 31, 2018.  Notwithstanding the termination of the agreement, the Operating Partnership shall have recourse against its development partner for any losses incurred.

 

      The second development partner has the right, at any time following completion of a project subject to the agreement, to require the Operating Partnership to purchase the partners’ interest in that project at a mutually agreeable price.  If the Operating Partnership and the partner are unable to agree on a price, both parties will obtain appraisals.  If the appraised values vary by more than 10%, both the Operating Partnership and its partner will agree on a third appraiser to determine which original appraisal is closest to its determination of value.  The Operating Partnership may elect at that time not to purchase the property and instead, authorize its partner to sell the project at or above the agreed-upon value to an unrelated third party.  Five years following the receipt of the final

 

F-39



 

certificate of occupancy on the last developed property, the Operating Partnership must purchase, at the agreed-upon price, any projects remaining unsold.

 

      The third development partner has the exclusive right for six months following stabilization, as defined, to market a subject project for sale.  Thereafter, either the Operating Partnership or its development partner may market a subject project for sale.  If the Operating Partnership’s development partner proposes the sale, the Operating Partnership may elect to purchase the project at the price proposed by its partner or defer the sale until two independent appraisers appraise the project.  If the two appraised values vary by more than 5%, a third appraiser will be chosen to determine the fair market value of the property.  Once a value has been determined, the Operating Partnership may elect to purchase the property or authorize its development partner to sell the project at the agreed-upon value.

 

In connection with one of its mergers, the Operating Partnership provided a guaranty of a credit enhancement agreement with respect to certain tax-exempt bonds issued to finance certain public improvements at a multifamily development project.  The Operating Partnership has the obligation to provide this guaranty for a period of eight years from the consummation of the merger or through May 2005.  The Operating Partnership would be required to perform under this agreement only if there was a draw on the letter of credit issued by the credit enhancement party.  The counterparty has also agreed to indemnify the Operating Partnership for any losses suffered.  As of December 31, 2004, this guaranty was still in effect at a commitment amount of $12.7 million (reduced to $10.4 million effective in January 2005) and no current outstanding liability.

 

During the years ended December 31, 2004, 2003 and 2002, total operating lease payments incurred for office space, including a portion of real estate taxes, insurance, repairs and utilities, aggregated $5.8 million, $5.7 million and $5.8 million, respectively.

 

The Company has entered into a retirement benefits agreement with its Chairman of the Board of Trustees and deferred compensation agreements with two of its executive officers and its former chief executive officer.  During the years ended December 31, 2004, 2003 and 2002, the Operating Partnership recognized compensation expense of $39,000, $3.0 million and $5.1 million, respectively, related to these agreements.

 

The following table summarizes the Operating Partnership’s contractual obligations for minimum rent payments under operating leases and deferred compensation for the next five years and thereafter as of December 31, 2004:

 

 

Payments Due by Year (in thousands)

 

Contractual Obligations

 

2005

 

2006

 

2007

 

2008

 

2009

 

Thereafter

 

Total

 

Operating Leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minimum Rent Payments (a)

 

$

4,816

 

$

4,205

 

$

3,464

 

$

3,335

 

$

3,233

 

$

7,369

 

$

26,422

 

Other Long-Term Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred Compensation (b)

 

813

 

1,807

 

2,211

 

2,211

 

2,211

 

11,230

 

20,483

 

 


(a)   Minimum basic rent due for various office space the Operating Partnership leases and fixed base rent due on a ground lease for one property.

(b)   Estimated payments to EQR’s Chairman, former CEO and two other executive officers based on planned retirement dates.

 

19.          Asset Impairment

 

The Operating Partnership recorded approximately $1.2 million of asset impairment charges related to its technology investments in each of the years ending December 31, 2003 and 2002. These charges were the result of a review of the existing investments reflected on the consolidated balance

 

F-40



 

sheet.  These impairment losses are reflected on the consolidated statements of operations in total expenses and include the write-down of assets classified as other assets.

 

For the year ended December 31, 2002, the Company recorded approximately $17.1 million of asset impairment charges related to its corporate housing business.  Following the guidance in SFAS No. 142, these charges were the result of the Company’s decision to reduce the carrying value of its corporate housing business to $30.0 million, given the weakness in the economy and management’s expectations for near-term performance.  This impairment loss is reflected on the consolidated statements of operations as impairment on corporate housing business and on the consolidated balance sheets as a reduction in goodwill, net.

 

20.          Reportable Segments

 

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by senior management.  Senior management decides how resources are allocated and assesses performance on a monthly basis.

 

The Operating Partnership’s primary business is owning, managing, and operating multifamily residential properties, which includes the generation of rental and other related income through the leasing of apartment units to residents and includes Equity Corporate Housing (“ECH”).  Senior management evaluates the performance of each of our apartment communities on an individual basis; however, each of our apartment communities has similar economic characteristics, residents, and products and services so they have been aggregated into one reportable segment.  The Operating Partnership’s rental real estate segment comprises approximately 99.4%, 99.2% and 99.4% of total revenues for the years ended December 31, 2004, 2003 and 2002, respectively.  The Operating Partnership’s rental real estate segment comprises approximately 99.8% and 99.7% of total assets at December 31, 2004 and 2003, respectively.

 

The primary financial measure for the Operating Partnership’s rental real estate segment is net operating income (“NOI”), which represents rental income less: 1) property and maintenance expense; 2) real estate taxes and insurance expense; and 3) property management expense (all as reflected in the accompanying statements of operations).  The Operating Partnership believes that NOI is helpful to investors as a supplemental measure of the operating performance of a real estate company because it is a direct measure of the actual operating results of the Operating Partnership’s apartment communities.  Current year NOI is compared to prior year NOI and current year budgeted NOI as a measure of financial performance.  The following table presents the NOI from our rental real estate specific to continuing operations for the years ended December 31, 2004, 2003 and 2002, respectively:

 

 

 

Year Ended December 31,

 

 

 

2004

 

2003

 

2002

 

 

 

(Amounts in thousands)

 

 

 

 

 

 

 

 

 

Rental income

 

$

1,878,262

 

$

1,691,647

 

$

1,677,459

 

Property and maintenance expense

 

(520,412

)

(460,426

)

(427,960

)

Real estate taxes and insurance expense

 

(222,448

)

(184,483

)

(170,029

)

Property management expense

 

(75,888

)

(68,058

)

(72,416

)

Net operating income

 

$

1,059,514

 

$

978,680

 

$

1,007,054

 

 

The Operating Partnership’s fee and asset management activity is immaterial and does not meet the threshold requirements of a reportable segment as provided for in SFAS No. 131.

 

All revenues are from external customers and there is no customer who contributed 10% or more of the Operating Partnership’s total revenues during the three years ended December 31, 2004, 2003 or 2002.

 

F-41



 

21.          Subsequent Events/Other

 

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

 

      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 EQR’s 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 EQR 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 Operating Partnership received $57.1 million in cash for its ownership interest in Rent.com in connection with the acquisition of Rent.com by eBay, Inc.

 

22.          Quarterly Financial Data (Unaudited)

 

The following unaudited quarterly data has been prepared on the basis of a December 31 year-end.  All amounts have also been restated in accordance with the discontinued operations provisions of SFAS No 144.  Amounts are in thousands, except for per OP Unit amounts.

 

2004

 

Fourth
Quarter
12/31

 

Third
Quarter
9/30

 

Second
Quarter
6/30

 

First
Quarter
3/31

 

Total revenues (1)

 

$

487,366

 

$

483,481

 

$

474,727

 

$

443,927

 

Operating income (1)

 

135,952

 

121,612

 

136,148

 

132,973

 

Income from continuing operations (1)

 

47,573

 

37,844

 

52,665

 

49,029

 

Net gain on sales of discontinued operations

 

116,272

 

58,394

 

77,760

 

71,499

 

Discontinued operations, net (1)

 

1,058

 

2,930

 

4,963

 

4,177

 

Net income*

 

164,903

 

99,168

 

135,388

 

124,705

 

Net income available to OP Units

 

147,563

 

79,648

 

116,651

 

105,949

 

Earnings per OP Unit – basic:

 

 

 

 

 

 

 

 

 

Net income available to OP Units

 

$

0.49

 

$

0.26

 

$

0.39

 

$

0.35

 

Weighted average OP Units outstanding

 

302,931

 

300,900

 

299,847

 

299,028

 

Earnings per OP Unit – diluted:

 

 

 

 

 

 

 

 

 

Net income available to OP Units

 

$

0.48

 

$

0.26

 

$

0.39

 

$

0.35

 

Weighted average OP Units outstanding

 

306,841

 

304,028

 

302,201

 

301,781

 

 


(1)   The amounts presented for the first three quarters of 2004 are not equal to the same amounts previously reported in the respective Form 10-Q’s filed with the SEC for each period as a result of changes in discontinued operations due to additional property sales which occurred throughout 2004.  Below is a reconciliation to the amounts previously reported in the respective Form 10-Q’s:

 

F-42



 

2004

 

Third
Quarter
9/30

 

Second
Quarter
6/30

 

First
Quarter
3/31

 

Total revenues previously reported in Form 10-Q

 

$

491,485

 

$

488,596

 

$

462,661

 

Total revenues subsequently reclassified to discontinued operations

 

(8,004

)

(13,869

)

(18,734

)

Total revenues disclosed in Form 10-K

 

$

483,481

 

$

474,727

 

$

443,927

 

Operating income previously reported in Form 10-Q

 

$

124,371

 

$

140,786

 

$

139,316

 

Operating income subsequently reclassified to discontinued operations

 

(2,759

)

(4,638

)

(6,343

)

Operating income disclosed in Form 10-K

 

$

121,612

 

$

136,148

 

$

132,973

 

Income from continuing operations previously reported in Form 10-Q

 

$

40,662

 

$

57,461

 

$

55,021

 

Income from continuing operations subsequently reclassified to discontinued operations

 

(2,818

)

(4,796

)

(5,992

)

Income from continuing operations disclosed in Form 10-K

 

$

37,844

 

$

52,665

 

$

49,029

 

Discontinued operations, net previously reported in Form 10-Q

 

$

112

 

$

167

 

$

(1,815

)

Discontinued operations, net from properties sold subsequent to the respective reporting period

 

2,818

 

4,796

 

5,992

 

 

 

 

 

 

 

 

 

Discontinued operations, net disclosed in Form 10-K

 

$

2,930

 

$

4,963

 

$

4,177

 

 

2003

 

Fourth
Quarter
12/31

 

Third
Quarter
9/30

 

Second
Quarter
6/30

 

First
Quarter
3/31

 

Total revenues (2)

 

$

430,692

 

$

430,248

 

$

426,229

 

$

418,851

 

Operating income (2)

 

126,992

 

134,351

 

138,414

 

130,507

 

Income from continuing operations (2)

 

42,123

 

56,380

 

59,391

 

55,167

 

Net gain on sales of discontinued operations

 

91,731

 

77,983

 

70,320

 

70,672

 

Discontinued operations, net (2)

 

8,206

 

12,063

 

15,851

 

18,618

 

Net income*

 

142,060

 

146,426

 

145,562

 

144,457

 

Net income available to OP Units

 

97,967

 

121,728

 

121,325

 

120,277

 

Earnings per OP Unit – basic:

 

 

 

 

 

 

 

 

 

Net income available to OP Units

 

$

0.33

 

$

0.41

 

$

0.41

 

$

0.41

 

Weighted average OP Units outstanding

 

296,371

 

295,032

 

293,696

 

292,949

 

Earnings OP Unit – diluted:

 

 

 

 

 

 

 

 

 

Net income available to OP Units

 

$

0.33

 

$

0.41

 

$

0.41

 

$

0.41

 

Weighted average OP Units outstanding

 

299,516

 

297,941

 

296,084

 

294,508

 

 


(2)           The amounts presented for the four quarters of 2003 are not equal to the same amounts previously reported in the respective Form 10-Q’s/10-K filed with the SEC for each period as a result of changes in discontinued operations due to additional property sales which occurred throughout 2004 and 2003.  Below is a reconciliation to the amounts previously reported in the respective Form 10-Q’s/10-K:

 

F-43



 

2003

 

Fourth
Quarter
12/31

 

Third
Quarter
9/30

 

Second
Quarter
6/30

 

First
Quarter
3/31

 

Total revenues previously reported in Form 10-Q/10-K

 

$

459,521

 

$

472,976

 

$

479,357

 

$

482,707

 

Total revenues subsequently reclassified to discontinued operations

 

(28,829

)

(42,728

)

(53,128

)

(63,856

)

Total revenues disclosed in Form 10-K

 

$

430,692

 

$

430,248

 

$

426,229

 

$

418,851

 

 

 

 

 

 

 

 

 

 

 

Operating income previously reported in Form 10-Q/10-K

 

$

136,057

 

$

147,635

 

$

155,638

 

$

151,039

 

Operating income subsequently reclassified to discontinued operations

 

(9,065

)

(13,284

)

(17,224

)

(20,532

)

Operating income disclosed in Form 10-K

 

$

126,992

 

$

134,351

 

$

138,414

 

$

130,507

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations previously reported in  Form 10-Q/10-K

 

$

50,273

 

$

68,450

 

$

75,105

 

$

73,369

 

Income from continuing operations subsequently reclassified to discontinued operations

 

(8,150

)

(12,070

)

(15,714

)

(18,202

)

Income from continuing operations disclosed in Form 10-K

 

$

42,123

 

$

56,380

 

$

59,391

 

$

55,167

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations, net previously reported in Form 10-Q/10-K

 

$

56

 

$

(7

)

$

137

 

$

416

 

Discontinued operations, net from properties sold subsequent to the respective reporting period

 

8,150

 

12,070

 

15,714

 

18,202

 

Discontinued operations, net disclosed in Form 10-K

 

$

8,206

 

$

12,063

 

$

15,851

 

$

18,618

 

 


* The Operating Partnership did not have any extraordinary items or cumulative effect of change in accounting principle during the years ended December 31, 2004 and 2003.  Therefore, income before extraordinary items and cumulative effect of change in accounting principle is not shown as it was equal to the net income amounts disclosed above.

 

F-44



 

ERP OPERATING LIMITED PARTNERSHIP

Schedule III - Real Estate and Accumulated Depreciation

December 31, 2004

 

Description

 

 

 

Initial Cost to
Company

 

Cost Capitalized
Subsequent to
Acquisition
(Improvements, net) (E)

 

Gross Amount Carried
at Close of
Period 12/31/04

 

 

 

 

 

 

 

Life Used to
Compute
Depreciation in
Latest Income
Statement (C)

 

Apartment Name

 

Location

 

Units (J)

 

Encumbrances

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures (A)

 

Total (B)

 

Accumulated
Depreciation

 

Date of
Construction

 

 

1111 25th St

 

Washington, D.C.

 

 

$

23,535,059

 

$

12,454,899

 

$

25,970,177

 

$

 

$

 

$

12,454,899

 

$

25,970,177

 

$

38,425,076

 

$

 

(F)

 

30 Years

 

1210 Mass

 

Washington, D.C.

 

142

 

27,821,158

 

9,213,512

 

30,151,143

 

 

 

9,213,512

 

30,151,143

 

39,364,655

 

(274,191

)

2004

 

30 Years

 

13th and N

 

Washington, D.C.

 

54

 

 

2,657,016

 

11,034,942

 

 

 

2,657,016

 

11,034,942

 

13,691,958

 

 

2004

 

30 Years

 

1660 Peachtree

 

Atlanta, GA

 

355

 

23,000,000

 

7,987,511

 

23,910,026

 

 

1,060,358

 

7,987,511

 

24,970,384

 

32,957,896

 

(872,937

)

1999

 

30 Years

 

2300 Elliott

 

Seattle, WA

 

92

 

 

796,800

 

7,173,725

 

 

4,306,534

 

796,800

 

11,480,259

 

12,277,059

 

(4,630,990

)

1992

 

30 Years

 

2400 M St

 

Washington, D.C.

 

 

25,167,232

 

30,006,593

 

33,767,467

 

 

 

30,006,593

 

33,767,467

 

63,774,060

 

 

(F)

 

30 Years

 

2900 on First

 

Seattle, WA (G)

 

135

 

 

1,177,700

 

10,600,360

 

 

3,252,630

 

1,177,700

 

13,852,990

 

15,030,690

 

(4,858,274

)

1989-91

 

30 Years

 

71 Broadway

 

New York, NY (G)

 

238

 

 

22,611,600

 

77,491,059

 

 

17,666

 

22,611,600

 

77,508,725

 

100,120,325

 

(640,139

)

1997

 

30 Years

 

740 River Drive

 

St. Paul, MN

 

163

 

5,620,888

 

1,626,700

 

11,234,943

 

 

2,934,678

 

1,626,700

 

14,169,620

 

15,796,320

 

(4,278,110

)

1962

 

30 Years

 

929 House

 

Cambridge, MA (G)

 

127

 

4,433,715

 

3,252,993

 

21,745,595

 

 

1,019,069

 

3,252,993

 

22,764,664

 

26,017,657

 

(3,421,089

)

1975

 

30 Years

 

Abington Glen

 

Abington, MA

 

90

 

 

553,105

 

3,697,396

 

 

1,147,519

 

553,105

 

4,844,915

 

5,398,020

 

(675,611

)

1968

 

30 Years

 

Acacia Creek

 

Scottsdale, AZ

 

304

 

 

3,663,473

 

21,172,386

 

 

1,436,601

 

3,663,473

 

22,608,988

 

26,272,461

 

(5,982,340

)

1988-1994

 

30 Years

 

Acadia Court

 

Bloomington, IN

 

96

 

1,922,423

 

257,484

 

2,268,653

 

 

440,915

 

257,484

 

2,709,568

 

2,967,051

 

(655,602

)

1985

 

30 Years

 

Acadia Court II

 

Bloomington, IN

 

104

 

 

253,636

 

2,234,632

 

 

246,388

 

253,636

 

2,481,019

 

2,734,655

 

(549,827

)

1986

 

30 Years

 

Alborada

 

Fremont, CA

 

442

 

 

24,310,000

 

59,214,129

 

 

953,928

 

24,310,000

 

60,168,056

 

84,478,056

 

(10,051,379

)

1999

 

30 Years

 

Ambergate (FL)

 

W. Palm Beach, FL

 

72

 

 

730,000

 

1,687,743

 

 

196,417

 

730,000

 

1,884,160

 

2,614,160

 

(348,290

)

1987

 

30 Years

 

Amberidge

 

Roseville, MI

 

45

 

 

130,844

 

1,152,880

 

 

196,508

 

130,844

 

1,349,387

 

1,480,232

 

(293,306

)

1985

 

30 Years

 

Amberton

 

Manassas, VA

 

190

 

10,705,000

 

900,600

 

11,921,650

 

 

1,441,752

 

900,600

 

13,363,402

 

14,264,002

 

(3,800,871

)

1986

 

30 Years

 

Amberwood (OH)

 

Massillon, OH

 

63

 

813,763

 

126,227

 

1,112,289

 

 

245,157

 

126,227

 

1,357,446

 

1,483,673

 

(315,859

)

1987

 

30 Years

 

Amberwood I (GA) (REIT)

 

Cartersville, GA

 

56

 

1,332,606

 

140,598

 

1,265,995

 

 

34,031

 

140,598

 

1,300,026

 

1,440,624

 

(44,553

)

1985

 

30 Years

 

Amesbury I

 

Reynoldsburg, OH

 

68

 

1,194,940

 

143,039

 

1,260,233

 

 

268,395

 

143,039

 

1,528,628

 

1,671,668

 

(343,664

)

1986

 

30 Years

 

Amesbury II

 

Reynoldsburg, OH

 

81

 

 

180,588

 

1,591,229

 

 

209,862

 

180,588

 

1,801,091

 

1,981,679

 

(394,432

)

1987

 

30 Years

 

Amhurst (Tol)

 

Toledo, OH

 

58

 

 

161,854

 

1,426,108

 

 

140,650

 

161,854

 

1,566,757

 

1,728,611

 

(323,647

)

1983

 

30 Years

 

Amhurst I (OH)

 

Dayton, OH

 

73

 

 

152,574

 

1,344,353

 

 

287,773

 

152,574

 

1,632,126

 

1,784,699

 

(406,291

)

1979

 

30 Years

 

Amhurst II (OH)

 

Dayton, OH

 

74

 

 

159,416

 

1,404,632

 

 

170,307

 

159,416

 

1,574,939

 

1,734,356

 

(355,554

)

1981

 

30 Years

 

Andover Court

 

Mt. Vernon, OH

 

51

 

 

123,875

 

1,091,272

 

 

205,529

 

123,875

 

1,296,801

 

1,420,676

 

(308,418

)

1982

 

30 Years

 

Annhurst (IN)

 

Indianapolis, IN

 

83

 

1,182,819

 

189,235

 

1,667,469

 

 

371,544

 

189,235

 

2,039,013

 

2,228,248

 

(469,658

)

1985

 

30 Years

 

Annhurst (MD) (REIT)

 

Belcamp, MD

 

67

 

1,206,889

 

232,575

 

2,093,165

 

 

191,819

 

232,575

 

2,284,984

 

2,517,559

 

(351,881

)

1984

 

30 Years

 

Annhurst (PA)

 

Clairton, PA

 

97

 

 

307,952

 

2,713,397

 

 

424,751

 

307,952

 

3,138,148

 

3,446,101

 

(672,123

)

1984

 

30 Years

 

Annhurst II (OH)

 

Gahanna, OH

 

56

 

 

116,739

 

1,028,595

 

 

207,364

 

116,739

 

1,235,958

 

1,352,697

 

(298,899

)

1986

 

30 Years

 

Annhurst III (OH)

 

Gahanna, OH

 

52

 

 

134,788

 

1,187,629

 

 

141,148

 

134,788

 

1,328,777

 

1,463,565

 

(289,201

)

1988

 

30 Years

 

Apple Ridge I

 

Circleville, OH

 

59

 

1,008,377

 

139,300

 

1,227,582

 

 

304,085

 

139,300

 

1,531,667

 

1,670,967

 

(327,884

)

1987

 

30 Years

 

Apple Ridge III

 

Circleville, OH

 

30

 

 

72,585

 

639,356

 

 

90,856

 

72,585

 

730,211

 

802,797

 

(151,772

)

1982

 

30 Years

 

Applegate (Col)

 

Columbus, IN

 

58

 

 

171,829

 

1,514,002

 

 

194,147

 

171,829

 

1,708,148

 

1,879,977

 

(352,980

)

1982

 

30 Years

 

Applegate I (IN)

 

Muncie, IN

 

53

 

862,233

 

138,506

 

1,220,386

 

 

229,500

 

138,506

 

1,449,886

 

1,588,391

 

(328,383

)

1984

 

30 Years

 

Applegate II (IN)

 

Muncie, IN

 

80

 

1,202,296

 

180,017

 

1,586,143

 

 

277,758

 

180,017

 

1,863,901

 

2,043,918

 

(404,571

)

1987

 

30 Years

 

Applewood I

 

Deland, FL

 

161

 

2,015,004

 

235,230

 

2,072,994

 

 

660,149

 

235,230

 

2,733,143

 

2,968,373

 

(733,680

)

1982

 

30 Years

 

Aragon Woods

 

Indianapolis, IN

 

67

 

 

157,791

 

1,390,010

 

 

120,902

 

157,791

 

1,510,913

 

1,668,704

 

(331,816

)

1986

 

30 Years

 

Arbor Glen

 

Ypsilanti, MI

 

220

 

6,405,314

 

1,096,064

 

9,887,635

 

 

1,596,261

 

1,096,064

 

11,483,896

 

12,579,960

 

(3,177,003

)

1990

 

30 Years

 

Arbor Terrace

 

Sunnyvale, CA

 

174

 

(R

)

9,057,300

 

18,483,642

 

 

729,285

 

9,057,300

 

19,212,927

 

28,270,227

 

(4,539,215

)

1979

 

30 Years

 

Arboretum (GA)

 

Atlanta, GA

 

312

 

 

4,682,300

 

15,913,018

 

 

1,567,064

 

4,682,300

 

17,480,082

 

22,162,382

 

(4,883,367

)

1970

 

30 Years

 

Arboretum (MA)

 

Canton, MA

 

156

 

(M

)

4,685,900

 

10,992,751

 

 

765,831

 

4,685,900

 

11,758,582

 

16,444,482

 

(2,907,630

)

1989

 

30 Years

 

Arboretum at Stonelake

 

Austin, TX

 

408

 

 

6,120,000

 

24,069,023

 

 

662,567

 

6,120,000

 

24,731,590

 

30,851,590

 

(1,201,491

)

1996

 

30 Years

 

Arbors of Brentwood

 

Nashville, TN

 

346

 

 

404,670

 

13,536,367

 

 

3,042,879

 

404,670

 

16,579,246

 

16,983,916

 

(6,783,064

)

1986

 

30 Years

 

Arbors of Hickory Hollow

 

Antioch, TN

 

336

 

(K

)

202,985

 

6,937,209

 

 

3,114,261

 

202,985

 

10,051,470

 

10,254,455

 

(4,861,939

)

1986

 

30 Years

 

Arbors of Las Colinas

 

Irving, TX

 

408

 

 

1,663,900

 

14,977,080

 

 

2,797,860

 

1,663,900

 

17,774,940

 

19,438,840

 

(7,486,985

)

1984/85

 

30 Years

 

Artisan Square

 

Northridge, CA

 

140

 

(U

)

7,000,000

 

20,537,359

 

 

110,519

 

7,000,000

 

20,647,878

 

27,647,878

 

(1,550,633

)

2002

 

30 Years

 

Ashford Hill

 

Reynoldsburg, OH

 

77

 

1,310,022

 

184,985

 

1,630,021

 

 

301,951

 

184,985

 

1,931,972

 

2,116,958

 

(452,700

)

1986

 

30 Years

 

Ashgrove (IN)

 

Indianapolis, IN

 

57

 

 

172,924

 

1,523,549

 

 

150,346

 

172,924

 

1,673,895

 

1,846,819

 

(349,833

)

1983

 

30 Years

 

Ashgrove (KY)

 

Louisville, KY

 

60

 

 

171,816

 

1,514,034

 

 

231,024

 

171,816

 

1,745,058

 

1,916,874

 

(376,722

)

1984

 

30 Years

 

Ashgrove (OH)

 

Franklin, OH

 

63

 

1,173,996

 

157,535

 

1,387,687

 

 

227,802

 

157,535

 

1,615,489

 

1,773,023

 

(362,621

)

1983

 

30 Years

 

Ashgrove I (MI)

 

Sterling Hts, MI

 

114

 

3,017,060

 

403,580

 

3,555,988

 

 

547,558

 

403,580

 

4,103,545

 

4,507,125

 

(843,274

)

1985

 

30 Years

 

Ashgrove II (MI)

 

Sterling Hts, MI

 

90

 

2,139,345

 

311,912

 

2,748,287

 

 

260,649

 

311,912

 

3,008,936

 

3,320,849

 

(605,253

)

1987

 

30 Years

 

Ashton, The

 

Corona Hills, CA

 

492

 

 

2,594,264

 

33,042,398

 

 

2,326,776

 

2,594,264

 

35,369,174

 

37,963,438

 

(9,219,254

)

1986

 

30 Years

 

Aspen Crossing

 

Silver Spring, MD

 

192

 

 

2,880,000

 

8,551,377

 

 

1,355,018

 

2,880,000

 

9,906,395

 

12,786,395

 

(2,393,226

)

1979

 

30 Years

 

Astorwood (REIT)

 

Stuart, FL

 

75

 

1,533,179

 

233,150

 

2,098,338

 

 

311,998

 

233,150

 

2,410,337

 

2,643,487

 

(385,241

)

1983

 

30 Years

 

Audubon Village

 

Tampa, FL

 

447

 

 

3,576,000

 

26,121,909

 

 

1,338,267

 

3,576,000

 

27,460,176

 

31,036,176

 

(6,430,700

)

1990

 

30 Years

 

Autumn Cove

 

Lithonia, GA

 

48

 

 

187,220

 

1,649,515

 

 

216,463

 

187,220

 

1,865,978

 

2,053,198

 

(368,513

)

1985

 

30 Years

 

Autumn River

 

Raleigh, NC

 

284

 

(U

)

3,408,000

 

20,890,457

 

 

209,845

 

3,408,000

 

21,100,302

 

24,508,302

 

(872,440

)

2002

 

30 Years

 

Auvers Village

 

Orlando, FL

 

480

 

 

3,840,000

 

29,322,243

 

 

2,129,770

 

3,840,000

 

31,452,013

 

35,292,013

 

(7,372,646

)

1991

 

30 Years

 

Avon Place

 

Avon, CT

 

163

 

(P

)

1,788,943

 

12,440,003

 

 

471,838

 

1,788,943

 

12,911,841

 

14,700,784

 

(1,926,168

)

1973

 

30 Years

 

Balcones Club

 

Austin, TX

 

312

 

 

2,185,500

 

10,119,232

 

 

2,085,533

 

2,185,500

 

12,204,764

 

14,390,264

 

(3,537,040

)

1984

 

30 Years

 

Ball Park Lofts

 

Denver, CO

 

339

 

 

7,291,498

 

53,214,462

 

 

145,268

 

7,291,498

 

53,359,730

 

60,651,228

 

(1,373,322

)

2003

 

30 Years

 

Barrington

 

Clarkston, GA

 

47

 

949,547

 

144,459

 

1,272,842

 

 

248,949

 

144,459

 

1,521,791

 

1,666,250

 

(326,352

)

1984

 

30 Years

 

Bay Hill

 

Long Beach, CA

 

160

 

13,998,000

 

7,600,000

 

27,437,239

 

 

66,388

 

7,600,000

 

27,503,628

 

35,103,628

 

(859,890

)

2002

 

30 Years

 

Bay Ridge

 

San Pedro, CA

 

60

 

 

2,401,300

 

2,176,963

 

 

457,613

 

2,401,300

 

2,634,576

 

5,035,876

 

(780,068

)

1987

 

30 Years

 

Bayside at the Islands

 

Gilbert, AZ

 

272

 

 

3,306,484

 

15,573,006

 

 

1,345,534

 

3,306,484

 

16,918,540

 

20,225,024

 

(4,580,003

)

1989

 

30 Years

 

Beckford Place (IN)

 

New Castle, IN

 

41

 

667,349

 

99,046

 

872,702

 

 

181,053

 

99,046

 

1,053,756

 

1,152,802

 

(225,924

)

1984

 

30 Years

 

Beckford Place (Pla)

 

The Plains, OH

 

60

 

 

161,161

 

1,420,002

 

 

225,339

 

161,161

 

1,645,341

 

1,806,502

 

(340,479

)

1982

 

30 Years

 

Beckford Place I (OH)

 

N Canton, OH

 

60

 

 

168,426

 

1,484,248

 

 

245,703

 

168,426

 

1,729,952

 

1,898,377

 

(368,923

)

1983

 

30 Years

 

Beckford Place II (OH)

 

N Canton, OH

 

60

 

 

172,134

 

1,516,691

 

 

133,866

 

172,134

 

1,650,557

 

1,822,691

 

(340,550

)

1985

 

30 Years

 

Bel Aire I

 

Miami, FL

 

70

 

 

188,343

 

1,658,995

 

 

270,140

 

188,343

 

1,929,135

 

2,117,478

 

(407,020

)

1985

 

30 Years

 

Bel Aire II

 

Miami, FL

 

51

 

 

136,416

 

1,201,075

 

 

190,740

 

136,416

 

1,391,816

 

1,528,232

 

(296,675

)

1986

 

30 Years

 

Bell Road I & II

 

Nashville, TN

 

 

 

3,100,000

 

1,120,214

 

 

 

3,100,000

 

1,120,214

 

4,220,214

 

 

(F)

 

30 Years

 

Bella Terra I

 

Mukilteo, WA

 

235

 

22,964,012

 

5,686,861

 

26,092,729

 

 

200,930

 

5,686,861

 

26,293,659

 

31,980,520

 

(843,624

)

2002

 

30 Years

 

Bella Vista I & II

 

Los Angeles, CA

 

315

 

 

16,883,410

 

61,318,586

 

 

81,589

 

16,883,410

 

61,400,175

 

78,283,585

 

(1,855,990

)

2003

 

30 Years

 

Bella Vista III

 

Los Angeles, CA

 

 

 

14,799,344

 

5,493,814

 

 

 

14,799,344

 

5,493,814

 

20,293,159

 

 

(F)

 

30 Years

 

Bellagio Apartment Homes

 

Scottsdale, AZ

 

202

 

 

2,626,000

 

16,024,404

 

 

17,355

 

2,626,000

 

16,041,759

 

18,667,759

 

(128,840

)

1995

 

30 Years

 

Bellevue Meadows

 

Bellevue, WA

 

180

 

 

4,507,100

 

12,574,814

 

 

599,067

 

4,507,100

 

13,173,881

 

17,680,981

 

(3,152,450

)

1983

 

30 Years

 

 

S-1



 

ERP OPERATING LIMITED PARTNERSHIP

Schedule III - Real Estate and Accumulated Depreciation

December 31, 2004

 

Description

 

 

 

Initial Cost to
Company

 

Cost Capitalized
Subsequent to
Acquisition
(Improvements, net) (E)

 

Gross Amount Carried
at Close of
Period 12/31/04

 

 

 

 

 

 

 

Life Used to
Compute
Depreciation in
Latest Income
Statement (C)

 

Apartment Name

 

Location

 

Units (J)

 

Encumbrances

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures (A)

 

Total (B)

 

Accumulated
Depreciation

 

Date of
Construction

 

 

Beneva Place

 

Sarasota, FL

 

192

 

8,700,000

 

1,344,000

 

9,665,447

 

 

650,248

 

1,344,000

 

10,315,695

 

11,659,695

 

(2,436,445

)

1986

 

30 Years

 

Bermuda Cove

 

Jacksonville, FL

 

350

 

 

1,503,000

 

19,561,896

 

 

2,415,261

 

1,503,000

 

21,977,157

 

23,480,157

 

(4,912,044

)

1989

 

30 Years

 

Berry Pines

 

Milton, FL

 

64

 

 

154,086

 

1,299,939

 

 

357,191

 

154,086

 

1,657,130

 

1,811,216

 

(415,843

)

1985

 

30 Years

 

Bishop Park

 

Winter Park, FL

 

324

 

 

2,592,000

 

17,990,436

 

 

2,380,130

 

2,592,000

 

20,370,566

 

22,962,566

 

(5,003,920

)

1991

 

30 Years

 

Blueberry Hill I

 

Leesburg, FL

 

68

 

 

140,370

 

1,236,710

 

 

163,814

 

140,370

 

1,400,524

 

1,540,894

 

(324,509

)

1986

 

30 Years

 

Bourbon Square

 

Palatine, IL

 

612

 

 

3,899,744

 

35,113,276

 

 

7,956,499

 

3,899,744

 

43,069,774

 

46,969,519

 

(18,507,618

)

1984-87

 

30 Years

 

Bradford Apartments

 

Newington, CT

 

64

 

(P

)

401,091

 

2,681,210

 

 

181,438

 

401,091

 

2,862,648

 

3,263,739

 

(469,961

)

1964

 

30 Years

 

Bramblewood

 

San Jose, CA

 

108

 

 

5,190,700

 

9,659,184

 

 

407,525

 

5,190,700

 

10,066,709

 

15,257,409

 

(2,413,571

)

1986

 

30 Years

 

Branchwood

 

Winter Park, FL

 

117

 

 

324,069

 

2,855,397

 

 

479,492

 

324,069

 

3,334,889

 

3,658,957

 

(732,950

)

1981

 

30 Years

 

Brandon Court

 

Bloomington, IN

 

78

 

 

170,636

 

1,503,487

 

 

365,218

 

170,636

 

1,868,705

 

2,039,340

 

(446,457

)

1984

 

30 Years

 

Brentwood

 

Vancouver, WA

 

296

 

 

1,357,221

 

12,202,521

 

 

1,737,216

 

1,357,221

 

13,939,737

 

15,296,959

 

(5,183,593

)

1990

 

30 Years

 

Breton Mill

 

Houston, TX

 

392

 

 

212,820

 

8,547,263

 

 

1,668,545

 

212,820

 

10,215,807

 

10,428,627

 

(4,301,152

)

1986

 

30 Years

 

Briar Knoll Apts

 

Vernon, CT

 

150

 

5,758,402

 

928,972

 

6,209,988

 

 

383,179

 

928,972

 

6,593,167

 

7,522,139

 

(1,095,483

)

1986

 

30 Years

 

Briarwood (CA)

 

Sunnyvale, CA

 

192

 

13,263,646

 

9,991,500

 

22,247,278

 

 

594,893

 

9,991,500

 

22,842,171

 

32,833,671

 

(5,155,417)

 

1985

 

30 Years

 

Bridford Lakes II

 

Greensboro, NC

 

 

 

1,100,564

 

792,509

 

 

 

1,100,564

 

792,509

 

1,893,073

 

 

(F)

 

30 Years

 

Bridgepoint I (REIT)

 

Jacksonville, FL

 

71

 

1,814,896

 

212,724

 

1,915,381

 

 

43,676

 

212,724

 

1,959,056

 

2,171,780

 

(56,636

)

1986

 

30 Years

 

Bridgeport

 

Raleigh, NC

 

276

 

 

1,296,700

 

11,666,278

 

 

1,278,526

 

1,296,700

 

12,944,805

 

14,241,505

 

(5,421,078

)

1990

 

30 Years

 

Bridgewater at Wells Crossing

 

Orange Park, FL

 

288

 

 

2,160,000

 

13,347,549

 

 

969,382

 

2,160,000

 

14,316,930

 

16,476,930

 

(2,877,614

)

1986

 

30 Years

 

Brittany Square

 

Tulsa, OK

 

212

 

 

625,000

 

4,050,961

 

 

1,826,134

 

625,000

 

5,877,095

 

6,502,095

 

(4,013,888

)

1982

 

30 Years

 

Broadview Oaks (REIT)

 

Pensacola, FL

 

90

 

 

201,000

 

1,809,185

 

 

291,633

 

201,000

 

2,100,817

 

2,301,817

 

(350,598

)

1985

 

30 Years

 

Broadway

 

Garland, TX

 

288

 

5,716,428

 

1,443,700

 

7,790,989

 

 

1,750,628

 

1,443,700

 

9,541,617

 

10,985,317

 

(2,716,685

)

1983

 

30 Years

 

Brookdale Village

 

Naperville, IL

 

252

 

10,820,000

 

3,276,000

 

16,293,471

 

 

1,547,553

 

3,276,000

 

17,841,024

 

21,117,024

 

(3,741,886

)

1986

 

30 Years

 

Brookridge

 

Centreville, VA

 

252

 

 

2,521,500

 

16,003,839

 

 

1,587,175

 

2,521,500

 

17,591,014

 

20,112,514

 

(4,717,255

)

1989

 

30 Years

 

Brookside (CO)

 

Boulder, CO

 

144

 

 

3,600,400

 

10,211,159

 

 

417,446

 

3,600,400

 

10,628,605

 

14,229,005

 

(2,542,403

)

1993

 

30 Years

 

Brookside (MD)

 

Frederick, MD

 

228

 

8,170,000

 

2,736,000

 

7,934,517

 

 

1,106,474

 

2,736,000

 

9,040,990

 

11,776,990

 

(2,098,051

)

1993

 

30 Years

 

Brookside Crossing I

 

Stockton, CA

 

90

 

4,658,000

 

625,000

 

4,656,691

 

 

690,452

 

625,000

 

5,347,143

 

5,972,143

 

(838,009

)

1981

 

30 Years

 

Brookside Crossing II

 

Stockton, CA

 

128

 

4,867,000

 

770,000

 

4,415,388

 

 

804,612

 

770,000

 

5,219,999

 

5,989,999

 

(883,001

)

1981

 

30 Years

 

Brookside II (MD)

 

Frederick, MD

 

204

 

 

2,450,800

 

6,913,202

 

 

1,189,290

 

2,450,800

 

8,102,492

 

10,553,292

 

(2,269,377

)

1979

 

30 Years

 

Brooksyde Apts

 

West Hartford, CT

 

80

 

(P

)

594,711

 

3,975,523

 

 

300,442

 

594,711

 

4,275,965

 

4,870,676

 

(703,140

)

1945

 

30 Years

 

Burgundy Studios

 

Middletown, CT

 

102

 

(P

)

395,238

 

2,642,087

 

 

188,643

 

395,238

 

2,830,729

 

3,225,967

 

(503,710

)

1973

 

30 Years

 

Burwick Farms

 

Howell, MI

 

264

 

 

1,104,600

 

9,932,207

 

 

929,402

 

1,104,600

 

10,861,609

 

11,966,209

 

(3,097,175

)

1991

 

30 Years

 

Cambridge at Hickory Hollow

 

Antioch, TN

 

360

 

(I

)

3,240,800

 

17,900,033

 

 

1,077,868

 

3,240,800

 

18,977,901

 

22,218,701

 

(5,170,223

)

1997

 

30 Years

 

Cambridge Commons I

 

Indianapolis, IN

 

86

 

 

179,139

 

1,578,077

 

 

573,977

 

179,139

 

2,152,055

 

2,331,194

 

(550,758

)

1986

 

30 Years

 

Cambridge Commons II

 

Indianapolis, IN

 

75

 

807,847

 

141,845

 

1,249,511

 

 

402,208

 

141,845

 

1,651,719

 

1,793,564

 

(416,058

)

1987

 

30 Years

 

Cambridge Commons III

 

Indianapolis, IN

 

75

 

 

98,125

 

864,738

 

 

342,646

 

98,125

 

1,207,384

 

1,305,509

 

(328,594

)

1988

 

30 Years

 

Cambridge Estates

 

Norwich, CT

 

92

 

 

590,185

 

3,945,265

 

 

222,821

 

590,185

 

4,168,086

 

4,758,271

 

(682,555

)

1977

 

30 Years

 

Camellero

 

Scottsdale, AZ

 

348

 

 

1,924,900

 

17,324,593

 

 

4,020,403

 

1,924,900

 

21,344,996

 

23,269,896

 

(8,727,272

)

1979

 

30 Years

 

Camellia Court I (Col)

 

Columbus, OH

 

64

 

 

133,059

 

1,172,393

 

 

248,182

 

133,059

 

1,420,574

 

1,553,633

 

(324,921

)

1981

 

30 Years

 

Camellia Court I (Day)

 

Dayton, OH

 

57

 

1,021,676

 

131,858

 

1,162,066

 

 

252,681

 

131,858

 

1,414,746

 

1,546,605

 

(337,348

)

1981

 

30 Years

 

Camellia Court II (Col)

 

Columbus, OH

 

40

 

881,303

 

118,421

 

1,043,417

 

 

266,806

 

118,421

 

1,310,223

 

1,428,644

 

(284,686

)

1984

 

30 Years

 

Camellia Court II (Day)

 

Dayton, OH

 

53

 

 

131,571

 

1,159,283

 

 

149,013

 

131,571

 

1,308,296

 

1,439,867

 

(286,029

)

1982

 

30 Years

 

Candlelight I

 

Brooksville, FL

 

51

 

563,330

 

105,000

 

925,167

 

 

294,927

 

105,000

 

1,220,093

 

1,325,094

 

(255,934

)

1982

 

30 Years

 

Candlelight II

 

Brooksville, FL

 

60

 

554,895

 

95,061

 

837,593

 

 

304,274

 

95,061

 

1,141,867

 

1,236,929

 

(258,852

)

1985

 

30 Years

 

Canterbury

 

Germantown, MD

 

544

 

31,680,000

 

2,781,300

 

32,942,366

 

 

3,758,157

 

2,781,300

 

36,700,524

 

39,481,824

 

(11,471,469

)

1986

 

30 Years

 

Canterbury Crossings

 

Lake Mary, FL

 

71

 

 

273,671

 

2,411,538

 

 

352,465

 

273,671

 

2,764,002

 

3,037,673

 

(542,467

)

1983

 

30 Years

 

Canyon Creek (CA)

 

San Ramon, CA

 

268

 

28,000,000

 

5,425,000

 

17,652,986

 

 

723,767

 

5,425,000

 

18,376,752

 

23,801,752

 

(2,623,658

)

1984

 

30 Years

 

Canyon Crest

 

Santa Clarita, CA

 

158

 

 

2,370,000

 

10,141,878

 

 

758,919

 

2,370,000

 

10,900,797

 

13,270,797

 

(2,411,558

)

1993

 

30 Years

 

Canyon Ridge

 

San Diego, CA

 

162

 

 

4,869,448

 

11,955,064

 

 

844,230

 

4,869,448

 

12,799,294

 

17,668,742

 

(3,306,043

)

1989

 

30 Years

 

Capital Ridge (REIT)

 

Tallahassee, FL

 

70

 

 

177,900

 

1,601,157

 

 

241,492

 

177,900

 

1,842,649

 

2,020,549

 

(291,527

)

1983

 

30 Years

 

Carleton Court (MI) (REIT)

 

Ann Arbor, MI

 

104

 

2,855,199

 

323,554

 

2,911,982

 

 

55,711

 

323,554

 

2,967,693

 

3,291,246

 

(106,225

)

1985

 

30 Years

 

Carlyle

 

Dallas, TX

 

180

 

8,265,766

 

1,890,000

 

14,155,000

 

 

311,450

 

1,890,000

 

14,466,450

 

16,356,450

 

(815,665

)

1993

 

30 Years

 

Carlyle Mill

 

Alexandria, VA

 

317

 

 

10,000,000

 

51,368,058

 

 

182,716

 

10,000,000

 

51,550,775

 

61,550,775

 

(2,977,551

)

2002

 

30 Years

 

Carmel Terrace

 

San Diego, CA

 

384

 

 

2,288,300

 

20,596,281

 

 

1,592,508

 

2,288,300

 

22,188,789

 

24,477,089

 

(8,060,779

)

1988-89

 

30 Years

 

Carriage Hill

 

Dublin, GA

 

60

 

 

131,911

 

1,162,577

 

 

106,253

 

131,911

 

1,268,830

 

1,400,740

 

(273,197

)

1985

 

30 Years

 

Casa Capricorn

 

San Diego, CA

 

192

 

 

1,262,700

 

11,365,093

 

 

1,908,617

 

1,262,700

 

13,273,710

 

14,536,410

 

(3,972,832

)

1981

 

30 Years

 

Casa Ruiz

 

San Diego, CA

 

196

 

 

3,922,400

 

9,389,153

 

 

1,810,002

 

3,922,400

 

11,199,155

 

15,121,555

 

(3,057,705

)

1976-1986

 

30 Years

 

Cascade at Landmark

 

Alexandria, VA

 

277

 

 

3,603,400

 

19,657,554

 

 

2,193,053

 

3,603,400

 

21,850,607

 

25,454,007

 

(6,182,270

)

1990

 

30 Years

 

Cedar Glen

 

Reading, MA

 

114

 

3,304,158

 

1,248,505

 

8,346,003

 

 

510,282

 

1,248,505

 

8,856,285

 

10,104,791

 

(1,329,944

)

1980

 

30 Years

 

Cedar Hill

 

Knoxville, TN

 

74

 

1,413,125

 

204,792

 

1,804,444

 

 

183,756

 

204,792

 

1,988,200

 

2,192,992

 

(434,131

)

1986

 

30 Years

 

Cedargate (GA)

 

Lawrenceville, GA

 

55

 

 

205,043

 

1,806,656

 

 

132,326

 

205,043

 

1,938,982

 

2,144,026

 

(380,606

)

1983

 

30 Years

 

Cedargate (MI)

 

Michigan City, IN

 

53

 

743,910

 

120,378

 

1,060,663

 

 

133,735

 

120,378

 

1,194,398

 

1,314,776

 

(254,379

)

1983

 

30 Years

 

Cedargate (She)

 

Shelbyville, KY

 

58

 

1,096,017

 

158,685

 

1,398,041

 

 

241,291

 

158,685

 

1,639,332

 

1,798,017

 

(351,944

)

1984

 

30 Years

 

Cedargate I (Cla)

 

Clayton, OH

 

61

 

1,150,203

 

159,599

 

1,406,493

 

 

235,157

 

159,599

 

1,641,650

 

1,801,249

 

(366,246

)

1984

 

30 Years

 

Cedargate I (IN)

 

Bloomington, IN

 

68

 

 

191,650

 

1,688,648

 

 

334,428

 

191,650

 

2,023,076

 

2,214,726

 

(433,978

)

1983

 

30 Years

 

Cedargate I (OH)

 

Lancaster, OH

 

110

 

2,156,949

 

240,587

 

2,119,432

 

 

440,553

 

240,587

 

2,559,985

 

2,800,572

 

(570,850

)

1982

 

30 Years

 

Cedargate II (IN)

 

Bloomington, IN

 

58

 

 

165,041

 

1,454,189

 

 

133,663

 

165,041

 

1,587,851

 

1,752,892

 

(348,128

)

1985

 

30 Years

 

Cedargate II (OH)

 

Lancaster, OH

 

47

 

670,395

 

87,618

 

771,912

 

 

128,098

 

87,618

 

900,010

 

987,628

 

(208,948

)

1983

 

30 Years

 

Cedarwood I (FL)

 

Ocala, FL

 

55

 

104,000

 

119,470

 

1,052,657

 

 

245,669

 

119,470

 

1,298,326

 

1,417,796

 

(295,626

)

1978

 

30 Years

 

Cedarwood I (IN)

 

Goshen, IN

 

90

 

1,777,307

 

251,745

 

2,218,126

 

 

371,028

 

251,745

 

2,589,154

 

2,840,899

 

(573,685

)

1983/84

 

30 Years

 

Cedarwood I (KY)

 

Lexington, KY

 

50

 

 

106,681

 

939,874

 

 

264,110

 

106,681

 

1,203,984

 

1,310,665

 

(282,314

)

1984

 

30 Years

 

Cedarwood II (FL)

 

Ocala, FL

 

39

 

 

98,372

 

866,769

 

 

97,663

 

98,372

 

964,432

 

1,062,804

 

(211,271

)

1980

 

30 Years

 

Cedarwood II (KY)

 

Lexington, KY

 

48

 

969,000

 

106,724

 

940,357

 

 

229,822

 

106,724

 

1,170,179

 

1,276,903

 

(275,230

)

1986

 

30 Years

 

Cedarwood III (KY)

 

Lexington, KY

 

48

 

 

102,491

 

902,659

 

 

163,951

 

102,491

 

1,066,611

 

1,169,102

 

(237,986

)

1986

 

30 Years

 

CenterPointe

 

Beaverton, OR

 

264

 

 

3,432,000

 

15,708,853

 

 

1,869,580

 

3,432,000

 

17,578,433

 

21,010,433

 

(2,164,146

)

1996

 

30 Years

 

Centre Club

 

Ontario, CA

 

312

 

 

5,616,000

 

23,485,891

 

 

1,075,219

 

5,616,000

 

24,561,110

 

30,177,110

 

(3,901,036

)

1994

 

30 Years

 

Centre Club II

 

Ontario, CA

 

100

 

 

1,820,000

 

9,528,898

 

 

17,424

 

1,820,000

 

9,546,322

 

11,366,322

 

(915,546

)

2002

 

30 Years

 

Centre Lake III

 

Miami, FL

 

234

 

 

685,601

 

6,039,979

 

 

914,071

 

685,601

 

6,954,050

 

7,639,651

 

(1,462,651

)

1986

 

30 Years

 

Champion Oaks

 

Houston, TX

 

252

 

 

931,900

 

8,389,394

 

 

1,340,278

 

931,900

 

9,729,672

 

10,661,572

 

(3,886,855

)

1984

 

30 Years

 

Chandler Court

 

Chandler, AZ

 

312

 

 

1,353,100

 

12,175,173

 

 

2,572,316

 

1,353,100

 

14,747,489

 

16,100,589

 

(5,450,143

)

1987

 

30 Years

 

 

S-2



 

ERP OPERATING LIMITED PARTNERSHIP

Schedule III - Real Estate and Accumulated Depreciation

December 31, 2004

 

Description

 

 

 

Initial Cost to
Company

 

Cost Capitalized
Subsequent to
Acquisition
(Improvements, net) (E)

 

Gross Amount Carried
at Close of
Period 12/31/04

 

 

 

 

 

 

 

Life Used to
Compute
Depreciation in
Latest Income
Statement (C)

 

Apartment Name

 

Location

 

Units (J)

 

Encumbrances

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures (A)

 

Total (B)

 

Accumulated
Depreciation

 

Date of
Construction

 

 

Chantecleer Lakes

 

Naperville, IL

 

304

 

 

6,689,400

 

16,332,279

 

 

1,854,202

 

6,689,400

 

18,186,481

 

24,875,881

 

(5,011,429

)

1986

 

30 Years

 

Charing Cross

 

Bowling Green, OH

 

67

 

 

154,584

 

1,362,057

 

 

214,373

 

154,584

 

1,576,430

 

1,731,015

 

(347,720

)

1978

 

30 Years

 

Chatelaine Park

 

Duluth, GA

 

303

 

 

1,818,000

 

24,489,671

 

 

754,704

 

1,818,000

 

25,244,375

 

27,062,375

 

(5,661,992

)

1995

 

30 Years

 

Chelsea Square

 

Redmond, WA

 

113

 

 

3,397,100

 

9,289,074

 

 

403,187

 

3,397,100

 

9,692,261

 

13,089,361

 

(2,312,051

)

1991

 

30 Years

 

Cherry Creek I,II,&III (TN)

 

Hermitage, TN

 

627

 

 

2,942,345

 

45,725,245

 

 

1,347,501

 

2,942,345

 

47,072,746

 

50,015,091

 

(9,819,177

)

1986/96

 

30 Years

 

Cherry Creek IV

 

Hermitage, TN

 

 

 

 

1,593

 

 

 

 

1,593

 

1,593

 

 

(F)

 

30 Years

 

Cherry Glen I

 

Indianapolis, IN

 

138

 

2,916,607

 

335,596

 

2,957,360

 

 

408,700

 

335,596

 

3,366,060

 

3,701,656

 

(778,335

)

1986/87

 

30 Years

 

Cherry Tree

 

Rosedale, MD

 

100

 

 

352,003

 

3,101,017

 

 

294,562

 

352,003

 

3,395,578

 

3,747,581

 

(713,195

)

1986

 

30 Years

 

Chestnut Glen

 

Abington, MA

 

130

 

5,072,859

 

1,178,965

 

7,881,139

 

 

348,378

 

1,178,965

 

8,229,517

 

9,408,482

 

(1,292,495

)

1983

 

30 Years

 

Chestnut Hills

 

Puyallup, WA

 

157

 

 

756,300

 

6,806,635

 

 

827,211

 

756,300

 

7,633,845

 

8,390,145

 

(2,259,009

)

1991

 

30 Years

 

Chickasaw Crossing

 

Orlando, FL

 

292

 

11,665,370

 

2,044,000

 

12,366,832

 

 

913,804

 

2,044,000

 

13,280,637

 

15,324,637

 

(3,144,749

)

1986

 

30 Years

 

Chinatown Gateway (Land)

 

Los Angeles, CA

 

 

 

13,191,887

 

228,021

 

 

 

13,191,887

 

228,021

 

13,419,908

 

 

(F)

 

30 Years

 

Church Corner

 

Cambridge, MA (G)

 

85

 

12,000,000

 

5,220,000

 

16,743,280

 

 

16,728

 

5,220,000

 

16,760,008

 

21,980,008

 

(285,168

)

1987

 

30 Years

 

Cierra Crest

 

Denver, CO

 

480

 

(R

)

4,803,100

 

34,894,898

 

 

1,579,244

 

4,803,100

 

36,474,141

 

41,277,241

 

(9,214,934

)

1996

 

30 Years

 

Cimarron Ridge

 

Aurora, CO

 

296

 

 

1,591,100

 

14,320,031

 

 

2,196,184

 

1,591,100

 

16,516,215

 

18,107,315

 

(5,203,033

)

1984

 

30 Years

 

City Place at West Port

 

Kansas City, MO

 

288

 

 

6,650,536

 

27,109,941

 

 

17,106

 

6,650,536

 

27,127,046

 

33,777,582

 

(903,936

)

2003

 

30 Years

 

City View at Highlands

 

Lombard, IL

 

403

 

 

4,636,653

 

60,642,751

 

 

30,382

 

4,636,653

 

60,673,132

 

65,309,785

 

(1,465,753

)

2003

 

30 Years

 

Claire Point

 

Jacksonville, FL

 

256

 

 

2,048,000

 

14,649,393

 

 

1,065,479

 

2,048,000

 

15,714,872

 

17,762,872

 

(3,781,827

)

1986

 

30 Years

 

Clarion

 

Decatur, GA

 

217

 

 

1,504,300

 

13,537,919

 

 

965,629

 

1,504,300

 

14,503,548

 

16,007,848

 

(3,803,752

)

1990

 

30 Years

 

Clarys Crossing

 

Columbia, MD

 

198

 

 

891,000

 

15,489,721

 

 

1,085,643

 

891,000

 

16,575,363

 

17,466,363

 

(3,803,088

)

1984

 

30 Years

 

Classic, The

 

Stamford, CT

 

144

 

 

2,883,500

 

20,336,721

 

 

2,135,298

 

2,883,500

 

22,472,019

 

25,355,519

 

(6,046,488

)

1990

 

30 Years

 

Clearview I

 

Greenwood, IN

 

70

 

12,735

 

182,206

 

1,605,429

 

 

261,613

 

182,206

 

1,867,042

 

2,049,248

 

(427,270

)

1986

 

30 Years

 

Clearview II

 

Greenwood, IN

 

80

 

 

226,963

 

1,999,792

 

 

176,908

 

226,963

 

2,176,700

 

2,403,663

 

(467,904

)

1987

 

30 Years

 

Clearwater

 

Eastlake, OH

 

42

 

1,008,377

 

128,303

 

1,130,691

 

 

168,914

 

128,303

 

1,299,605

 

1,427,908

 

(271,246

)

1986

 

30 Years

 

Club at Tanasbourne

 

Hillsboro, OR

 

352

 

(Q

)

3,521,300

 

16,257,934

 

 

1,709,353

 

3,521,300

 

17,967,287

 

21,488,587

 

(5,478,165

)

1990

 

30 Years

 

Club at the Green

 

Beaverton, OR

 

254

 

 

2,030,950

 

12,616,747

 

 

1,730,465

 

2,030,950

 

14,347,212

 

16,378,162

 

(4,282,616

)

1991

 

30 Years

 

Coach Lantern

 

Scarborough, ME

 

90

 

 

452,900

 

4,405,723

 

 

507,048

 

452,900

 

4,912,771

 

5,365,671

 

(1,324,668

)

1971/1981

 

30 Years

 

Coachlight Village

 

Agawam, MA

 

88

 

(P

)

501,726

 

3,353,933

 

 

207,677

 

501,726

 

3,561,610

 

4,063,335

 

(566,897

)

1967

 

30 Years

 

Coachman Trails

 

Plymouth, MN

 

154

 

6,093,167

 

1,227,000

 

9,517,381

 

 

891,763

 

1,227,000

 

10,409,144

 

11,636,144

 

(2,611,133

)

1987

 

30 Years

 

Cobblestone Village

 

Fresno, CA

 

162

 

6,000,000

 

315,000

 

5,336,557

 

 

798,127

 

315,000

 

6,134,684

 

6,449,684

 

(1,016,643

)

1983

 

30 Years

 

Coconut Palm Club

 

Coconut Creek, GA

 

300

 

 

3,001,700

 

17,678,928

 

 

1,109,364

 

3,001,700

 

18,788,293

 

21,789,993

 

(4,667,609

)

1992

 

30 Years

 

Colinas Pointe

 

Denver, CO

 

272

 

 

1,587,400

 

14,285,902

 

 

1,062,435

 

1,587,400

 

15,348,337

 

16,935,737

 

(4,333,187

)

1986

 

30 Years

 

Collier Ridge

 

Atlanta, GA

 

300

 

 

5,100,000

 

20,425,822

 

 

2,766,290

 

5,100,000

 

23,192,112

 

28,292,112

 

(5,218,742

)

1980

 

30 Years

 

Colonial Village

 

Plainville, CT

 

104

 

(P

)

693,575

 

4,636,410

 

 

394,526

 

693,575

 

5,030,935

 

5,724,511

 

(835,410

)

1968

 

30 Years

 

Concord Square (IN)

 

Kokomo, IN

 

49

 

 

123,247

 

1,085,962

 

 

153,908

 

123,247

 

1,239,870

 

1,363,117

 

(270,319

)

1983

 

30 Years

 

Concord Square I (OH)

 

Mansfield, OH

 

72

 

 

164,124

 

1,446,313

 

 

249,055

 

164,124

 

1,695,368

 

1,859,492

 

(365,692

)

1981/83

 

30 Years

 

Conway Court

 

Roslindale, MA

 

28

 

417,473

 

101,451

 

710,524

 

 

61,578

 

101,451

 

772,101

 

873,552

 

(133,587

)

1920

 

30 Years

 

Conway Station

 

Orlando, FL

 

242

 

 

1,936,000

 

10,852,858

 

 

825,291

 

1,936,000

 

11,678,149

 

13,614,149

 

(2,809,253

)

1987

 

30 Years

 

Copper Canyon

 

Highlands Ranch, CO

 

222

 

(O

)

1,443,000

 

16,251,114

 

 

475,131

 

1,443,000

 

16,726,244

 

18,169,244

 

(3,449,162

)

1999

 

30 Years

 

Copper Creek

 

Tempe, AZ

 

144

 

 

1,017,400

 

9,148,068

 

 

899,289

 

1,017,400

 

10,047,356

 

11,064,756

 

(2,933,574

)

1984

 

30 Years

 

Copper Terrace

 

Orlando, FL

 

300

 

 

1,200,000

 

17,887,868

 

 

1,605,321

 

1,200,000

 

19,493,190

 

20,693,190

 

(4,637,789

)

1989

 

30 Years

 

Cortona at Dana Park

 

Mesa, AZ

 

222

 

 

2,028,939

 

12,466,128

 

 

1,248,041

 

2,028,939

 

13,714,169

 

15,743,108

 

(3,767,643

)

1986

 

30 Years

 

Country Brook

 

Chandler, AZ

 

396

 

 

1,505,219

 

29,542,535

 

 

1,408,211

 

1,505,219

 

30,950,746

 

32,455,965

 

(7,959,627

)

1986-1996

 

30 Years

 

Country Club Condominium, LLC

 

Mill Creek, WA

 

86

 

 

646,108

 

5,985,305

 

 

1,342,996

 

646,108

 

7,328,301

 

7,974,409

 

(1,645,413

)

1991

 

30 Years

 

Country Club Place (FL)

 

Pembroke Pines, FL

 

152

 

 

912,000

 

10,016,543

 

 

980,151

 

912,000

 

10,996,694

 

11,908,694

 

(2,695,202

)

1987

 

30 Years

 

Country Club Woods

 

Mobile, AL (T)

 

256

 

4,156,457

 

230,091

 

5,561,464

 

 

718,267

 

230,091

 

6,279,731

 

6,509,822

 

(1,475,802

)

1975

 

30 Years

 

Country Gables

 

Beaverton, OR

 

288

 

 

1,580,500

 

14,215,444

 

 

2,393,228

 

1,580,500

 

16,608,671

 

18,189,171

 

(5,077,043

)

1991

 

30 Years

 

Country Gables II

 

Beaverton, OR

 

 

 

1,200,000

 

4,006

 

 

 

1,200,000

 

4,006

 

1,204,006

 

 

(F)

 

30 Years

 

Country Oaks

 

Agoura Hills, CA

 

256

 

29,412,000

 

6,105,000

 

20,902,294

 

 

754,966

 

6,105,000

 

21,657,261

 

27,762,261

 

(2,941,821

)

1985

 

30 Years

 

Country Ridge

 

Farmington Hills, MI

 

252

 

 

1,621,950

 

14,596,964

 

 

2,107,915

 

1,621,950

 

16,704,879

 

18,326,829

 

(5,449,859

)

1986

 

30 Years

 

Countryside I

 

Daytona Beach, FL

 

59

 

 

136,665

 

1,204,164

 

 

392,156

 

136,665

 

1,596,320

 

1,732,984

 

(376,866

)

1982

 

30 Years

 

Countryside II

 

Daytona Beach, FL

 

97

 

 

234,633

 

2,067,376

 

 

308,009

 

234,633

 

2,375,384

 

2,610,018

 

(509,739

)

1982

 

30 Years

 

Countryside III (REIT)

 

Daytona Beach, FL

 

34

 

 

80,000

 

719,868

 

 

105,958

 

80,000

 

825,826

 

905,826

 

(135,167

)

1983

 

30 Years

 

Countryside Manor

 

Douglasville, GA

 

82

 

 

298,186

 

2,627,348

 

 

291,381

 

298,186

 

2,918,728

 

3,216,915

 

(629,258

)

1985

 

30 Years

 

Cove at Fishers Landing

 

Vancouver, WA

 

253

 

 

2,277,000

 

15,656,887

 

 

399,121

 

2,277,000

 

16,056,008

 

18,333,008

 

(1,664,475

)

1993

 

30 Years

 

Coventry at Cityview

 

Fort Worth, TX

 

360

 

(U

)

2,160,000

 

23,072,847

 

 

1,117,286

 

2,160,000

 

24,190,133

 

26,350,133

 

(5,515,625

)

1996

 

30 Years

 

Creekside (San Mateo)

 

San Mateo, CA

 

192

 

(R

)

9,606,600

 

21,193,232

 

 

632,515

 

9,606,600

 

21,825,746

 

31,432,346

 

(5,093,503

)

1985

 

30 Years

 

Creekside Homes at Legacy

 

Plano. TX

 

380

 

 

4,560,000

 

32,275,748

 

 

905,140

 

4,560,000

 

33,180,888

 

37,740,888

 

(7,390,494

)

1998

 

30 Years

 

Creekside Village

 

Mountlake Terrace, WA

 

512

 

 

2,807,600

 

25,270,594

 

 

2,821,193

 

2,807,600

 

28,091,787

 

30,899,387

 

(10,628,817

)

1987

 

30 Years

 

Creekwood

 

Charlotte, NC

 

384

 

 

1,861,700

 

16,740,569

 

 

1,764,067

 

1,861,700

 

18,504,635

 

20,366,335

 

(5,152,952

)

1987-1990

 

30 Years

 

Crescent at Cherry Creek

 

Denver, CO

 

216

 

(O

)

2,594,000

 

15,149,470

 

 

856,813

 

2,594,000

 

16,006,282

 

18,600,282

 

(4,193,715

)

1994

 

30 Years

 

Cross Creek

 

Matthews, NC

 

420

 

(R

)

3,151,600

 

20,295,925

 

 

1,374,687

 

3,151,600

 

21,670,612

 

24,822,212

 

(5,343,662

)

1989

 

30 Years

 

Crosswinds

 

St. Petersburg, FL

 

208

 

 

1,561,200

 

5,756,822

 

 

1,192,049

 

1,561,200

 

6,948,871

 

8,510,071

 

(2,254,517

)

1986

 

30 Years

 

Crown Court

 

Scottsdale, AZ

 

416

 

(S

)

3,156,600

 

28,414,599

 

 

2,452,734

 

3,156,600

 

30,867,333

 

34,023,933

 

(8,953,508

)

1987

 

30 Years

 

Crystal Village

 

Attleboro, MA

 

91

 

 

1,369,000

 

4,989,028

 

 

1,554,613

 

1,369,000

 

6,543,641

 

7,912,641

 

(1,729,715

)

1974

 

30 Years

 

Cypress

 

Panama City, FL

 

70

 

1,305,670

 

171,882

 

1,514,636

 

 

343,108

 

171,882

 

1,857,744

 

2,029,626

 

(419,547

)

1985

 

30 Years

 

Cypress Lake at Waterford

 

Orlando, Fl

 

316

 

 

7,000,000

 

27,654,816

 

 

55,926

 

7,000,000

 

27,710,742

 

34,710,742

 

(914,728

)

2001

 

30 Years

 

Daniel Court

 

Cincinnati, OH

 

114

 

2,163,506

 

334,101

 

2,943,516

 

 

593,050

 

334,101

 

3,536,567

 

3,870,667

 

(853,366

)

1985

 

30 Years

 

Dartmouth Place I

 

Kent, OH

 

53

 

 

151,771

 

1,337,422

 

 

295,742

 

151,771

 

1,633,164

 

1,784,935

 

(368,806

)

1982

 

30 Years

 

Dartmouth Place II

 

Kent, OH

 

49

 

 

130,102

 

1,146,337

 

 

185,559

 

130,102

 

1,331,896

 

1,461,997

 

(288,280

)

1986

 

30 Years

 

Dartmouth Woods

 

Lakewood, CO

 

201

 

 

1,609,800

 

10,832,754

 

 

916,193

 

1,609,800

 

11,748,947

 

13,358,747

 

(3,380,891

)

1990

 

30 Years

 

Dean Estates

 

Taunton, MA

 

58

 

 

498,080

 

3,329,560

 

 

212,040

 

498,080

 

3,541,601

 

4,039,680

 

(564,615

)

1984

 

30 Years

 

Dean Estates II

 

Cranston, RI

 

48

 

(P

)

308,457

 

2,061,971

 

 

215,598

 

308,457

 

2,277,569

 

2,586,026

 

(388,860

)

1970

 

30 Years

 

Deerbrook

 

Jacksonville, FL

 

144

 

 

1,008,000

 

8,845,716

 

 

871,313

 

1,008,000

 

9,717,029

 

10,725,029

 

(2,362,246

)

1983

 

30 Years

 

Deerfield

 

Denver, CO

 

158

 

9,100,000

 

1,260,000

 

7,869,511

 

 

972,466

 

1,260,000

 

8,841,977

 

10,101,977

 

(1,359,690

)

1983

 

30 Years

 

Deerwood (Corona)

 

Corona, CA

 

316

 

(U

)

4,742,200

 

20,272,892

 

 

1,964,944

 

4,742,200

 

22,237,836

 

26,980,036

 

(6,021,965

)

1992

 

30 Years

 

Deerwood (FL)

 

Eustis, FL

 

50

 

802,868

 

114,948

 

1,012,819

 

 

179,658

 

114,948

 

1,192,477

 

1,307,425

 

(278,938

)

1982

 

30 Years

 

Deerwood (SD)

 

San Diego, CA

 

316

 

 

2,082,095

 

18,739,815

 

 

4,711,729

 

2,082,095

 

23,451,545

 

25,533,640

 

(10,161,685

)

1990

 

30 Years

 

Defoor Village

 

Atlanta, GA

 

156

 

 

2,966,400

 

10,570,210

 

 

1,481,209

 

2,966,400

 

12,051,419

 

15,017,819

 

(2,630,269

)

1997

 

30 Years

 

 

S-3



 

ERP OPERATING LIMITED PARTNERSHIP

Schedule III - Real Estate and Accumulated Depreciation

December 31, 2004

 

Description

 

 

 

Initial Cost to
Company

 

Cost Capitalized
Subsequent to
Acquisition
(Improvements, net) (E)

 

Gross Amount Carried
at Close of
Period 12/31/04

 

 

 

 

 

 

 

Life Used to
Compute
Depreciation in
Latest Income
Statement (C)

 

Apartment Name

 

Location

 

Units (J)

 

Encumbrances

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures (A)

 

Total (B)

 

Accumulated
Depreciation

 

Date of
Construction

 

 

Desert Homes

 

Phoenix, AZ

 

412

 

 

1,481,050

 

13,390,249

 

 

2,999,004

 

1,481,050

 

16,389,253

 

17,870,303

 

(5,637,666

)

1982

 

30 Years

 

Dogwood Glen I

 

Indianapolis, IN

 

83

 

1,702,607

 

240,855

 

2,122,193

 

 

315,647

 

240,855

 

2,437,840

 

2,678,695

 

(529,046

)

1986

 

30 Years

 

Dogwood Glen II

 

Indianapolis, IN

 

77

 

1,233,044

 

202,397

 

1,783,336

 

 

236,718

 

202,397

 

2,020,054

 

2,222,451

 

(444,418

)

1987

 

30 Years

 

Dover Place I

 

Eastlake, OH

 

64

 

 

244,294

 

2,152,494

 

 

280,600

 

244,294

 

2,433,094

 

2,677,388

 

(515,881

)

1982

 

30 Years

 

Dover Place II

 

Eastlake, OH

 

63

 

1,513,570

 

230,895

 

2,034,242

 

 

203,705

 

230,895

 

2,237,947

 

2,468,842

 

(445,730

)

1983

 

30 Years

 

Dover Place III

 

Eastlake, OH

 

30

 

717,129

 

119,835

 

1,055,878

 

 

69,260

 

119,835

 

1,125,138

 

1,244,973

 

(217,537

)

1983

 

30 Years

 

Dover Place IV

 

Eastlake, OH

 

72

 

1,741,599

 

261,912

 

2,307,730

 

 

192,941

 

261,912

 

2,500,671

 

2,762,583

 

(485,582

)

1986

 

30 Years

 

Driftwood

 

Atlantic Beach, FL

 

63

 

346,206

 

126,357

 

1,113,430

 

 

292,159

 

126,357

 

1,405,590

 

1,531,947

 

(332,920

)

1985

 

30 Years

 

Duraleigh Woods

 

Raleigh, NC

 

362

 

 

1,629,000

 

19,917,750

 

 

2,603,288

 

1,629,000

 

22,521,038

 

24,150,038

 

(5,454,738

)

1987

 

30 Years

 

Eagle Canyon

 

Chino Hills, CA

 

252

 

 

1,808,900

 

16,426,168

 

 

1,185,487

 

1,808,900

 

17,611,655

 

19,420,555

 

(5,351,042

)

1985

 

30 Years

 

East Pointe

 

Charlotte, NC

 

310

 

 

1,365,900

 

12,295,246

 

 

1,957,169

 

1,365,900

 

14,252,415

 

15,618,315

 

(6,001,904

)

1987

 

30 Years

 

Eastbridge

 

Dallas, TX

 

169

 

8,547,271

 

3,380,000

 

11,860,382

 

 

386,610

 

3,380,000

 

12,246,992

 

15,626,992

 

(1,627,418

)

1998

 

30 Years

 

Edgewater

 

Bakersfield, CA

 

258

 

11,988,000

 

580,000

 

11,119,979

 

 

1,013,042

 

580,000

 

12,133,021

 

12,713,021

 

(1,932,602

)

1984

 

30 Years

 

Edgewood

 

Woodinville, WA

 

203

 

 

1,070,100

 

9,632,980

 

 

1,245,739

 

1,070,100

 

10,878,719

 

11,948,819

 

(4,187,897

)

1986

 

30 Years

 

Elmtree Park I

 

Indianapolis, IN

 

72

 

1,367,159

 

157,687

 

1,389,621

 

 

266,267

 

157,687

 

1,655,888

 

1,813,575

 

(397,263

)

1986

 

30 Years

 

Elmtree Park II

 

Indianapolis, IN

 

53

 

859,729

 

114,114

 

1,005,455

 

 

193,057

 

114,114

 

1,198,512

 

1,312,626

 

(289,067

)

1987

 

30 Years

 

Elmwood (GA)

 

Marietta, GA

 

48

 

 

183,756

 

1,619,095

 

 

241,915

 

183,756

 

1,861,010

 

2,044,766

 

(387,936

)

1984

 

30 Years

 

Elmwood I (FL)

 

W. Palm Beach, FL

 

52

 

316,202

 

163,389

 

1,439,632

 

 

156,874

 

163,389

 

1,596,506

 

1,759,895

 

(334,863

)

1984

 

30 Years

 

Elmwood II (FL)

 

W. Palm Beach, FL

 

50

 

1,230,468

 

179,743

 

1,582,960

 

 

133,228

 

179,743

 

1,716,188

 

1,895,932

 

(356,091

)

1984

 

30 Years

 

Emerson Place

 

Boston, MA (G)

 

462

 

 

14,855,000

 

57,566,636

 

 

11,994,873

 

14,855,000

 

69,561,509

 

84,416,509

 

(18,275,154

)

1962

 

30 Years

 

Emerson Place/CRP II

 

Boston, MA

 

 

 

 

1,716,729

 

 

 

 

1,716,729

 

1,716,729

 

 

(F)

 

30 Years

 

Enclave at Winston Park

 

Coconut Creek, FL

 

278

 

 

5,560,000

 

19,939,324

 

 

417,836

 

5,560,000

 

20,357,160

 

25,917,160

 

(2,169,693

)

1995

 

30 Years

 

Enclave, The

 

Tempe, AZ

 

204

 

(O

)

1,500,192

 

19,281,399

 

 

662,156

 

1,500,192

 

19,943,555

 

21,443,747

 

(4,967,574

)

1994

 

30 Years

 

EOP Orange

 

Orange, CA

 

 

 

 

275,099

 

 

 

 

275,099

 

275,099

 

 

(F)

 

30 Years

 

Esprit Del Sol

 

Solana Beach, CA

 

146

 

 

5,111,200

 

11,910,438

 

 

741,504

 

5,111,200

 

12,651,942

 

17,763,142

 

(3,049,533

)

1986

 

30 Years

 

Fairfield

 

Stamford, CT (G)

 

263

 

 

6,510,200

 

39,690,120

 

 

1,224,464

 

6,510,200

 

40,914,584

 

47,424,784

 

(9,550,541

)

1996

 

30 Years

 

Fairland Gardens

 

Silver Spring, MD

 

400

 

 

6,000,000

 

19,972,183

 

 

2,159,568

 

6,000,000

 

22,131,751

 

28,131,751

 

(5,088,578

)

1981

 

30 Years

 

Farnham Park

 

Houston, TX

 

216

 

 

1,512,600

 

14,233,760

 

 

706,986

 

1,512,600

 

14,940,746

 

16,453,346

 

(3,785,389)

 

1996

 

30 Years

 

Fernbrook Townhomes

 

Plymouth, MN

 

72

 

4,970,424

 

580,100

 

6,683,693

 

 

372,578

 

580,100

 

7,056,271

 

7,636,371

 

(1,640,103

)

1993

 

30 Years

 

Fireside Park

 

Rockville, MD

 

236

 

8,095,000

 

4,248,000

 

9,977,101

 

 

1,348,752

 

4,248,000

 

11,325,853

 

15,573,853

 

(2,652,665

)

1961

 

30 Years

 

Forest Glen

 

Pensacola, FL

 

73

 

 

161,548

 

1,423,618

 

 

274,455

 

161,548

 

1,698,074

 

1,859,622

 

(411,570

)

1986

 

30 Years

 

Forest Ridge I & II

 

Arlington, TX

 

660

 

(S

)

2,362,700

 

21,263,295

 

 

3,402,487

 

2,362,700

 

24,665,782

 

27,028,482

 

(8,505,590

)

1984/85

 

30 Years

 

Forest Village

 

Macon, GA

 

83

 

 

224,022

 

1,973,876

 

 

301,419

 

224,022

 

2,275,295

 

2,499,317

 

(465,343

)

1983

 

30 Years

 

Forsythia Court (KY)

 

Louisville, KY

 

98

 

1,769,936

 

279,450

 

2,462,187

 

 

364,708

 

279,450

 

2,826,895

 

3,106,345

 

(611,355

)

1985

 

30 Years

 

Forsythia Court (MD)

 

Abingdon, MD

 

76

 

1,945,272

 

251,955

 

2,220,100

 

 

393,106

 

251,955

 

2,613,206

 

2,865,161

 

(577,125

)

1986

 

30 Years

 

Forsythia Court II (MD)

 

Abingdon, MD

 

76

 

 

239,834

 

2,113,339

 

 

279,078

 

239,834

 

2,392,417

 

2,632,250

 

(522,113

)

1987

 

30 Years

 

Fountain Place I

 

Eden Prairie, MN

 

332

 

24,653,106

 

2,405,068

 

21,694,117

 

 

1,699,062

 

2,405,068

 

23,393,179

 

25,798,247

 

(6,168,758

)

1989

 

30 Years

 

Fountain Place II

 

Eden Prairie, MN

 

158

 

12,600,000

 

1,231,350

 

11,095,333

 

 

689,599

 

1,231,350

 

11,784,933

 

13,016,282

 

(3,041,287

)

1989

 

30 Years

 

Fountainhead I

 

San Antonio, TX

 

240

 

(M

)

1,205,816

 

5,200,241

 

 

774,764

 

1,205,816

 

5,975,004

 

7,180,820

 

(3,809,231

)

1985/1987

 

30 Years

 

Fountainhead II

 

San Antonio, TX

 

224

 

(M

)

1,205,817

 

4,529,801

 

 

1,381,419

 

1,205,817

 

5,911,220

 

7,117,037

 

(3,586,800

)

1985/1987

 

30 Years

 

Fountainhead III

 

San Antonio, TX

 

224

 

(M

)

1,205,816

 

4,399,093

 

 

1,382,063

 

1,205,816

 

5,781,155

 

6,986,971

 

(3,298,924

)

1985/1987

 

30 Years

 

Four Lakes

 

Lisle, IL

 

168

 

 

439,605

 

2,567,975

 

 

3,898,126

 

439,605

 

6,466,101

 

6,905,706

 

(4,298,527

)

1968/1988

 

30 Years

 

Four Lakes 5

 

Lisle, IL

 

478

 

(M

)

600,000

 

19,186,686

 

 

2,415,140

 

600,000

 

21,601,826

 

22,201,826

 

(12,121,234

)

1968/1988

 

30 Years

 

Four Lakes Athletic Club

 

Lisle, IL (G)

 

 

 

50,000

 

153,489

 

 

95,111

 

50,000

 

248,600

 

298,600

 

(30,118

)

N/A

 

30 Years

 

Four Lakes Condo, LLC Phase V

 

Lisle, IL

 

3

 

 

9,076

 

46,327

 

 

30,155

 

9,076

 

76,482

 

85,557

 

(53,561

)

1968/1988

 

30 Years

 

Four Lakes Condo, LLC Phase VI

 

Lisle, IL

 

64

 

 

145,787

 

866,188

 

 

2,733,361

 

145,787

 

3,599,549

 

3,745,337

 

(1,424,945

)

1970/1988

 

30 Years

 

Four Lakes Condo, LLC Phase VII

 

Lisle, IL

 

60

 

 

157,002

 

924,495

 

 

1,605,395

 

157,002

 

2,529,890

 

2,686,892

 

(1,535,188

)

1970/1988

 

30 Years

 

Four Lakes Leasing Center

 

Lisle, IL (G)

 

 

 

50,000

 

152,815

 

 

41,649

 

50,000

 

194,464

 

244,464

 

(56,982

)

N/A

 

30 Years

 

Four Winds

 

Fall River, MA

 

168

 

(P

)

1,370,843

 

9,163,804

 

 

396,532

 

1,370,843

 

9,560,337

 

10,931,179

 

(1,532,287

)

1987

 

30 Years

 

Fox Hill Apartments

 

Enfield, CT

 

168

 

(P

)

1,129,018

 

7,547,256

 

 

325,187

 

1,129,018

 

7,872,443

 

9,001,461

 

(1,289,474

)

1974

 

30 Years

 

Fox Ridge

 

Englewood, CO

 

300

 

20,300,000

 

2,490,000

 

17,509,781

 

 

1,038,933

 

2,490,000

 

18,548,715

 

21,038,715

 

(2,863,047

)

1984

 

30 Years

 

Fox Run (WA)

 

Federal Way, WA

 

144

 

 

639,700

 

5,765,018

 

 

1,019,284

 

639,700

 

6,784,302

 

7,424,002

 

(2,743,915

)

1988

 

30 Years

 

Fox Run II (WA)

 

Federal Way, WA

 

18

 

 

80,000

 

1,286,139

 

 

53,086

 

80,000

 

1,339,225

 

1,419,225

 

(68,614

)

1988

 

30 Years

 

Foxcroft

 

Scarborough, ME

 

104

 

 

523,400

 

4,527,409

 

 

459,910

 

523,400

 

4,987,319

 

5,510,719

 

(1,373,480

)

1977/1979

 

30 Years

 

Foxhaven

 

Canton, OH

 

107

 

 

256,821

 

2,263,172

 

 

468,520

 

256,821

 

2,731,692

 

2,988,513

 

(615,192

)

1986

 

30 Years

 

Foxton (MI)

 

Monroe, MI

 

51

 

 

156,363

 

1,377,824

 

 

227,956

 

156,363

 

1,605,780

 

1,762,142

 

(329,340

)

1983

 

30 Years

 

Foxton II (OH)

 

Dayton, OH

 

80

 

 

165,806

 

1,460,832

 

 

165,610

 

165,806

 

1,626,443

 

1,792,248

 

(353,852

)

1983

 

30 Years

 

Gables Grand Plaza

 

Coral Gables, FL (G)

 

195

 

 

 

44,600,668

 

 

456,040

 

 

45,056,708

 

45,056,708

 

(1,828,219

)

1998

 

30 Years

 

Garden Court

 

Detroit, MI

 

102

 

1,961,858

 

351,532

 

3,096,890

 

 

249,743

 

351,532

 

3,346,633

 

3,698,165

 

(670,813

)

1988

 

30 Years

 

Garden Lake

 

Riverdale, GA

 

278

 

 

1,466,900

 

13,186,716

 

 

1,072,858

 

1,466,900

 

14,259,574

 

15,726,474

 

(3,954,381

)

1991

 

30 Years

 

Garden Terrace I

 

Tampa, FL

 

59

 

 

93,144

 

820,699

 

 

358,439

 

93,144

 

1,179,138

 

1,272,282

 

(294,510

)

1981

 

30 Years

 

Garden Terrace II

 

Tampa, FL

 

65

 

 

97,120

 

855,730

 

 

351,388

 

97,120

 

1,207,118

 

1,304,238

 

(296,126

)

1982

 

30 Years

 

Gatehouse at Pine Lake

 

Pembroke Pines, FL

 

296

 

 

1,896,600

 

17,070,795

 

 

1,394,788

 

1,896,600

 

18,465,582

 

20,362,182

 

(5,626,720

)

1990

 

30 Years

 

Gatehouse on the Green

 

Plantation, FL

 

312

 

 

2,228,200

 

20,056,270

 

 

1,710,816

 

2,228,200

 

21,767,086

 

23,995,286

 

(6,657,158

)

1990

 

30 Years

 

Gates at Carlson Center

 

Minnetonka, MN

 

435

 

(N

)

4,355,200

 

23,802,817

 

 

5,306,365

 

4,355,200

 

29,109,182

 

33,464,382

 

(7,368,735

)

1989

 

30 Years

 

Gates of Redmond

 

Redmond, WA

 

180

 

 

2,306,100

 

12,064,015

 

 

957,415

 

2,306,100

 

13,021,430

 

15,327,530

 

(3,557,459

)

1979

 

30 Years

 

Gateway at Malden Center

 

Malden, MA (G)

 

203

 

 

9,209,780

 

25,722,666

 

 

650,065

 

9,209,780

 

26,372,731

 

35,582,511

 

(1,825,363

)

1988

 

30 Years

 

Gatewood

 

Pleasanton, CA

 

200

 

 

6,796,511

 

20,249,392

 

 

759,788

 

6,796,511

 

21,009,179

 

27,805,690

 

(1,240,343

)

1985

 

30 Years

 

Geary Court Yard

 

San Francisco, CA

 

164

 

17,693,865

 

1,722,400

 

15,471,429

 

 

806,073

 

1,722,400

 

16,277,502

 

17,999,902

 

(4,216,747

)

1990

 

30 Years

 

Georgian Woods Combined (REIT)

 

Wheaton, MD

 

570

 

17,470,313

 

5,038,400

 

28,837,369

 

 

5,326,738

 

5,038,400

 

34,164,107

 

39,202,507

 

(11,659,269

)

1967

 

30 Years

 

Glastonbury Center

 

Glastonbury, CT

 

105

 

 

852,606

 

5,699,497

 

 

449,953

 

852,606

 

6,149,451

 

7,002,057

 

(1,003,526

)

1962

 

30 Years

 

Glen Arm Manor

 

Albany, GA

 

70

 

1,060,185

 

166,498

 

1,466,883

 

 

274,374

 

166,498

 

1,741,257

 

1,907,756

 

(378,507

)

1986

 

30 Years

 

Glen Grove

 

Wellesley, MA

 

125

 

3,795,038

 

1,344,601

 

8,988,383

 

 

513,431

 

1,344,601

 

9,501,814

 

10,846,415

 

(1,435,190

)

1979

 

30 Years

 

Glen Meadow

 

Franklin, MA

 

288

 

1,939,125

 

2,339,330

 

15,796,431

 

 

1,381,905

 

2,339,330

 

17,178,337

 

19,517,667

 

(2,901,375

)

1971

 

30 Years

 

GlenGarry Club

 

Bloomingdale, IL

 

250

 

(N

)

3,129,700

 

15,807,889

 

 

1,815,423

 

3,129,700

 

17,623,311

 

20,753,011

 

(4,657,682

)

1989

 

30 Years

 

Glenlake

 

Glendale Heights. IL

 

336

 

14,845,000

 

5,041,700

 

16,671,970

 

 

4,137,392

 

5,041,700

 

20,809,362

 

25,851,062

 

(5,898,252

)

1988

 

30 Years

 

Glenwood Village

 

Macon, GA

 

80

 

1,007,502

 

167,779

 

1,478,614

 

 

229,809

 

167,779

 

1,708,423

 

1,876,202

 

(381,714

)

1986

 

30 Years

 

Gore Meadows

 

Watertown, MA

 

 

 

 

163,697

 

 

 

 

163,697

 

163,697

 

 

(F)

 

30 Years

 

Gosnold Grove

 

East Falmouth, MA

 

33

 

595,899

 

124,296

 

830,891

 

 

105,169

 

124,296

 

936,060

 

1,060,355

 

(182,029

)

1978

 

30 Years

 

 

S-4



 

ERP OPERATING LIMITED PARTNERSHIP

Schedule III - Real Estate and Accumulated Depreciation

December 31, 2004

 

Description

 

 

 

Initial Cost to
Company

 

Cost Capitalized
Subsequent to
Acquisition
(Improvements, net) (E)

 

Gross Amount Carried
at Close of
Period 12/31/04

 

 

 

 

 

 

 

Life Used to
Compute
Depreciation in
Latest Income
Statement (C)

 

Apartment Name

 

Location

 

Units (J)

 

Encumbrances

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures (A)

 

Total (B)

 

Accumulated
Depreciation

 

Date of
Construction

 

 

Gramercy Park

 

Houston, TX

 

384

 

 

3,957,000

 

22,075,243

 

 

1,272,760

 

3,957,000

 

23,348,002

 

27,305,002

 

(2,672,377

)

1998

 

30 Years

 

Granada Highlands

 

Malden, MA (G)

 

919

 

 

28,210,000

 

99,944,576

 

 

7,634,865

 

28,210,000

 

107,579,441

 

135,789,441

 

(20,617,153

)

1972

 

30 Years

 

Grand Marquis Condominium, LLC

 

Plantation, FL

 

198

 

 

917,800

 

9,140,076

 

 

1,371,969

 

917,800

 

10,512,046

 

11,429,846

 

(4,110,023

)

1987

 

30 Years

 

Grand Oasis Condominium, LLC

 

Coral Springs, FL

 

89

 

 

358,896

 

3,588,802

 

 

969,136

 

358,896

 

4,557,938

 

4,916,834

 

(1,522,680

)

1987

 

30 Years

 

Grand Reserve

 

Woodbury, MN

 

394

 

 

4,728,000

 

49,541,642

 

 

4,318,206

 

4,728,000

 

53,859,848

 

58,587,848

 

(7,364,568

)

2000

 

30 Years

 

Grandeville at River Place

 

Oviedo, FL

 

280

 

 

6,000,000

 

23,110,997

 

 

92,980

 

6,000,000

 

23,203,977

 

29,203,977

 

(1,013,863

)

2002

 

30 Years

 

Greenbriar Glen

 

Atlanta, GA

 

74

 

1,391,109

 

227,701

 

2,006,246

 

 

305,529

 

227,701

 

2,311,775

 

2,539,477

 

(445,174

)

1988

 

30 Years

 

Greenfield Village

 

Rocky Hill, CT

 

151

 

 

911,534

 

6,093,418

 

 

171,645

 

911,534

 

6,265,064

 

7,176,598

 

(1,012,392

)

1965

 

30 Years

 

Greengate (FL)

 

W. Palm Beach, FL

 

120

 

 

2,500,000

 

1,615,859

 

 

299,694

 

2,500,000

 

1,915,553

 

4,415,553

 

(391,409

)

1987

 

30 Years

 

Greenglen (Day)

 

Dayton, OH

 

76

 

 

204,289

 

1,800,172

 

 

298,289

 

204,289

 

2,098,461

 

2,302,750

 

(459,706

)

1983

 

30 Years

 

Greenglen II (Tol)

 

Toledo, OH

 

58

 

 

162,264

 

1,429,719

 

 

202,224

 

162,264

 

1,631,943

 

1,794,207

 

(332,135

)

1982

 

30 Years

 

Greenhaven

 

Union City, CA

 

250

 

10,975,000

 

7,507,000

 

15,210,399

 

 

1,391,472

 

7,507,000

 

16,601,871

 

24,108,871

 

(4,034,011

)

1983

 

30 Years

 

Greenhouse - Frey Road

 

Kennesaw, GA

 

489

 

(M

)

2,467,200

 

22,187,443

 

 

3,009,883

 

2,467,200

 

25,197,326

 

27,664,526

 

(9,938,727

)

1985

 

30 Years

 

Greenhouse - Holcomb Bridge

 

Alpharetta, GA

 

437

 

(M

)

2,143,300

 

19,291,427

 

 

3,021,223

 

2,143,300

 

22,312,650

 

24,455,950

 

(8,897,741

)

1985

 

30 Years

 

Greenhouse - Roswell

 

Roswell, GA

 

236

 

(M

)

1,220,000

 

10,974,727

 

 

1,894,090

 

1,220,000

 

12,868,818

 

14,088,818

 

(5,214,467

)

1985

 

30 Years

 

Greentree 1

 

Glen Burnie, MD

 

350

 

11,000,000

 

3,912,968

 

11,784,021

 

 

2,097,434

 

3,912,968

 

13,881,455

 

17,794,423

 

(3,376,484

)

1973

 

30 Years

 

Greentree 2

 

Glen Burnie, MD

 

239

 

 

2,700,000

 

8,246,737

 

 

990,411

 

2,700,000

 

9,237,148

 

11,937,148

 

(2,133,855

)

1973

 

30 Years

 

Greentree 3

 

Glen Burnie, MD

 

207

 

 

2,380,443

 

7,270,294

 

 

789,707

 

2,380,443

 

8,060,001

 

10,440,444

 

(1,872,059

)

1973

 

30 Years

 

Greentree I (GA) (REIT)

 

Thomasville, GA

 

43

 

629,393

 

84,750

 

762,659

 

 

178,917

 

84,750

 

941,577

 

1,026,327

 

(148,053

)

1983

 

30 Years

 

Greentree II (GA) (REIT)

 

Thomasville, GA

 

32

 

473,348

 

81,000

 

729,283

 

 

111,455

 

81,000

 

840,738

 

921,738

 

(131,091

)

1984

 

30 Years

 

Greenwood Villas

 

Lake Mary, FL

 

56

 

 

450,000

 

2,465,447

 

 

1,448

 

450,000

 

2,466,894

 

2,916,894

 

(47,049

)

1984

 

30 Years

 

Hall Place

 

Quincy, MA

 

90

 

 

3,150,800

 

5,121,950

 

 

511,811

 

3,150,800

 

5,633,760

 

8,784,560

 

(1,327,211

)

1998

 

30 Years

 

Hammocks Place

 

Miami, FL

 

296

 

(L

)

319,180

 

12,513,467

 

 

1,592,031

 

319,180

 

14,105,497

 

14,424,677

 

(5,886,184

)

1986

 

30 Years

 

Hampshire II

 

Elyria, OH

 

56

 

797,823

 

126,231

 

1,112,036

 

 

184,881

 

126,231

 

1,296,917

 

1,423,148

 

(267,287

)

1981

 

30 Years

 

Hampshire Place

 

Los Angeles, CA

 

259

 

19,958,653

 

10,806,000

 

30,331,904

 

 

4,735

 

10,806,000

 

30,336,638

 

41,142,638

 

(95,031

)

1989

 

30 Years

 

Hamptons

 

Puyallup, WA

 

230

 

 

1,119,200

 

10,075,844

 

 

976,491

 

1,119,200

 

11,052,335

 

12,171,535

 

(3,208,047

)

1991

 

30 Years

 

Harbinwood

 

Norcross, GA

 

72

 

 

236,761

 

2,086,122

 

 

274,307

 

236,761

 

2,360,429

 

2,597,190

 

(511,234

)

1985

 

30 Years

 

Harborview

 

San Pedro, CA

 

160

 

 

6,402,500

 

12,627,347

 

 

1,181,453

 

6,402,500

 

13,808,800

 

20,211,300

 

(3,970,184

)

1985

 

30 Years

 

Harbour Town

 

Boca Raton, FL

 

392

 

 

11,760,000

 

20,190,252

 

 

3,359,619

 

11,760,000

 

23,549,871

 

35,309,871

 

(4,567,867

)

1985

 

30 Years

 

Hartwick

 

Tipton, IN

 

44

 

 

123,791

 

1,090,729

 

 

171,410

 

123,791

 

1,262,140

 

1,385,930

 

(282,053

)

1982

 

30 Years

 

Harvest Grove I

 

Gahanna, OH

 

73

 

1,504,592

 

170,334

 

1,500,232

 

 

307,743

 

170,334

 

1,807,974

 

1,978,309

 

(401,278

)

1986

 

30 Years

 

Harvest Grove II

 

Gahanna, OH

 

57

 

 

148,792

 

1,310,818

 

 

190,011

 

148,792

 

1,500,829

 

1,649,620

 

(301,890

)

1987

 

30 Years

 

Hatcherway

 

Waycross, GA

 

64

 

684,375

 

96,885

 

853,716

 

 

239,832

 

96,885

 

1,093,549

 

1,190,434

 

(275,038

)

1986

 

30 Years

 

Hathaway

 

Long Beach, CA

 

385

 

 

2,512,500

 

22,611,912

 

 

3,076,704

 

2,512,500

 

25,688,615

 

28,201,115

 

(8,610,848

)

1987

 

30 Years

 

Hayfield Park

 

Burlington, KY

 

86

 

1,534,250

 

261,457

 

2,303,394

 

 

227,323

 

261,457

 

2,530,718

 

2,792,174

 

(528,945

)

1986

 

30 Years

 

Heathmoore (Eva)

 

Evansville, IN

 

73

 

1,039,481

 

162,375

 

1,430,747

 

 

265,042

 

162,375

 

1,695,788

 

1,858,163

 

(377,669

)

1984

 

30 Years

 

Heathmoore (KY)

 

Louisville, KY

 

62

 

 

156,840

 

1,381,730

 

 

246,181

 

156,840

 

1,627,910

 

1,784,750

 

(352,193

)

1983

 

30 Years

 

Heathmoore (MI)

 

Clinton Twp., MI

 

72

 

1,584,774

 

227,105

 

2,001,243

 

 

320,616

 

227,105

 

2,321,859

 

2,548,964

 

(487,239

)

1983

 

30 Years

 

Heathmoore I (IN)

 

Indianapolis, IN

 

55

 

1,145,909

 

144,557

 

1,273,702

 

 

231,132

 

144,557

 

1,504,834

 

1,649,391

 

(354,737)

 

1983

 

30 Years

 

Heathmoore I (MI)

 

Canton, MI

 

60

 

1,521,755

 

232,064

 

2,044,227

 

 

265,673

 

232,064

 

2,309,900

 

2,541,963

 

(486,486

)

1986

 

30 Years

 

Heathmoore II (MI)

 

Canton, MI

 

51

 

 

170,433

 

1,501,697

 

 

168,207

 

170,433

 

1,669,903

 

1,840,336

 

(343,539

)

1986

 

30 Years

 

Heritage Green

 

Sturbridge, MA

 

130

 

2,703,422

 

835,313

 

5,583,898

 

 

531,188

 

835,313

 

6,115,086

 

6,950,399

 

(973,901

)

1974

 

30 Years

 

Heritage, The

 

Phoenix, AZ

 

204

 

 

1,211,205

 

13,136,903

 

 

667,629

 

1,211,205

 

13,804,533

 

15,015,738

 

(3,532,830

)

1995

 

30 Years

 

Heron Pointe

 

Boynton Beach, FL

 

192

 

 

1,546,700

 

7,774,676

 

 

956,899

 

1,546,700

 

8,731,575

 

10,278,275

 

(2,744,634

)

1989

 

30 Years

 

Heron Pointe (Atl)

 

Atlantic Beach, FL

 

99

 

1,566,550

 

214,332

 

1,888,814

 

 

378,016

 

214,332

 

2,266,830

 

2,481,162

 

(534,992

)

1986

 

30 Years

 

Heronwood (REIT)

 

Ft. Myers, FL

 

59

 

1,157,161

 

146,100

 

1,315,211

 

 

238,372

 

146,100

 

1,553,583

 

1,699,683

 

(229,006

)

1982

 

30 Years

 

Hickory Mill

 

Hilliard, OH

 

60

 

 

161,714

 

1,424,682

 

 

347,037

 

161,714

 

1,771,719

 

1,933,433

 

(388,013

)

1980

 

30 Years

 

Hickory Place

 

Gainesville, FL

 

70

 

1,246,264

 

192,453

 

1,695,454

 

 

292,252

 

192,453

 

1,987,706

 

2,180,160

 

(455,358

)

1983

 

30 Years

 

Hidden Acres

 

Sarasota, FL

 

94

 

1,601,965

 

253,139

 

2,230,579

 

 

355,532

 

253,139

 

2,586,110

 

2,839,249

 

(553,524

)

1987

 

30 Years

 

Hidden Lake

 

Sacramento, CA

 

272

 

15,165,000

 

1,715,000

 

12,263,475

 

 

1,029,490

 

1,715,000

 

13,292,965

 

15,007,965

 

(2,043,036

)

1985

 

30 Years

 

Hidden Lakes

 

Haltom City, TX

 

312

 

 

1,872,000

 

20,242,109

 

 

953,464

 

1,872,000

 

21,195,573

 

23,067,573

 

(4,880,561

)

1996

 

30 Years

 

Hidden Oaks

 

Cary, NC

 

216

 

 

1,178,600

 

10,614,135

 

 

1,597,072

 

1,178,600

 

12,211,208

 

13,389,808

 

(3,604,260

)

1988

 

30 Years

 

Hidden Palms

 

Tampa, FL

 

256

 

 

2,049,600

 

6,345,885

 

 

1,628,333

 

2,049,600

 

7,974,218

 

10,023,818

 

(2,502,051

)

1986

 

30 Years

 

Hidden Pines

 

Casselberry, FL

 

56

 

19,562

 

176,308

 

1,553,565

 

 

440,840

 

176,308

 

1,994,406

 

2,170,713

 

(455,713

)

1981

 

30 Years

 

Hidden Valley Club

 

Ann Arbor, MI

 

324

 

 

915,000

 

6,667,098

 

 

3,482,805

 

915,000

 

10,149,903

 

11,064,903

 

(7,326,836

)

1973

 

30 Years

 

High Meadow

 

Ellington, CT

 

100

 

4,115,841

 

583,679

 

3,901,774

 

 

217,220

 

583,679

 

4,118,994

 

4,702,673

 

(670,431

)

1975

 

30 Years

 

High Points

 

New Port Richey, FL

 

95

 

 

222,308

 

1,958,772

 

 

475,690

 

222,308

 

2,434,463

 

2,656,771

 

(566,044

)

1986

 

30 Years

 

High River

 

Tuscaloosa, AL (T)

 

152

 

3,569,223

 

208,108

 

3,663,221

 

 

689,898

 

208,108

 

4,353,119

 

4,561,226

 

(1,028,666

)

1978

 

30 Years

 

Highland Creste

 

Kent, WA

 

198

 

 

935,200

 

8,415,391

 

 

1,038,433

 

935,200

 

9,453,825

 

10,389,025

 

(2,897,831

)

1989

 

30 Years

 

Highland Glen

 

Westwood, MA

 

180

 

 

2,229,095

 

16,828,153

 

 

365,953

 

2,229,095

 

17,194,106

 

19,423,202

 

(2,472,591

)

1979

 

30 Years

 

Highland Glen II

 

Westwood, MA

 

 

 

603,508

 

400,524

 

 

 

603,508

 

400,524

 

1,004,032

 

 

(F)

 

30 Years

 

Highland Point

 

Aurora, CO

 

319

 

(Q

)

1,631,900

 

14,684,439

 

 

1,432,664

 

1,631,900

 

16,117,102

 

17,749,002

 

(4,668,312

)

1984

 

30 Years

 

Highline Oaks

 

Denver, CO

 

220

 

(M

)

1,057,400

 

9,340,249

 

 

1,340,899

 

1,057,400

 

10,681,148

 

11,738,548

 

(3,316,917

)

1986

 

30 Years

 

Hillcrest Villas

 

Crestview, FL

 

65

 

912,418

 

141,603

 

1,247,677

 

 

194,103

 

141,603

 

1,441,780

 

1,583,383

 

(325,706

)

1985

 

30 Years

 

Hillside Manor

 

Americus, GA

 

60

 

 

102,632

 

904,111

 

 

380,601

 

102,632

 

1,284,712

 

1,387,344

 

(316,348

)

1985

 

30 Years

 

Holly Ridge

 

Pembroke Park, FL

 

98

 

 

295,596

 

2,603,985

 

 

366,302

 

295,596

 

2,970,287

 

3,265,883

 

(638,237

)

1986

 

30 Years

 

Holly Sands I

 

Ft. Walton Bch., FL

 

72

 

 

190,942

 

1,682,524

 

 

303,321

 

190,942

 

1,985,845

 

2,176,787

 

(458,903

)

1985

 

30 Years

 

Holly Sands II

 

Ft. Walton Bch., FL

 

52

 

1,009,375

 

124,578

 

1,098,074

 

 

171,993

 

124,578

 

1,270,067

 

1,394,645

 

(292,134

)

1986

 

30 Years

 

Hudson Crossing

 

New York, NY (G)

 

259

 

 

23,420,000

 

70,069,263

 

 

2,334

 

23,420,000

 

70,071,597

 

93,491,597

 

(1,135,506

)

2003

 

30 Years

 

Hudson Pointe

 

Jersey City, NJ

 

182

 

 

5,148,500

 

41,596,476

 

 

96,488

 

5,148,500

 

41,692,964

 

46,841,463

 

(1,261,380

)

2003

 

30 Years

 

Hunt Club

 

Charlotte, NC

 

300

 

 

990,000

 

17,992,887

 

 

941,935

 

990,000

 

18,934,823

 

19,924,823

 

(4,396,636

)

1990

 

30 Years

 

Hunt Club II

 

Charlotte, NC

 

 

 

100,000

 

 

 

 

100,000

 

 

100,000

 

 

(F)

 

30 Years

 

Hunters Green

 

Fort Worth, TX

 

248

 

 

524,300

 

3,653,481

 

 

1,335,663

 

524,300

 

4,989,143

 

5,513,443

 

(2,362,518

)

1981

 

30 Years

 

Hunters Ridge

 

St. Louis, MO

 

198

 

10,680,000

 

994,500

 

8,913,997

 

 

1,488,157

 

994,500

 

10,402,154

 

11,396,654

 

(3,196,673

)

1986-1987

 

30 Years

 

Huntington Park

 

Everett, WA

 

381

 

 

1,597,500

 

14,367,864

 

 

1,590,150

 

1,597,500

 

15,958,014

 

17,555,514

 

(6,503,313

)

1991

 

30 Years

 

Independence Village

 

Reynoldsburg, OH

 

124

 

 

226,988

 

2,000,011

 

 

400,858

 

226,988

 

2,400,869

 

2,627,856

 

(556,417

)

1978

 

30 Years

 

Indian Bend

 

Scottsdale, AZ

 

276

 

 

1,075,700

 

9,675,133

 

 

1,992,973

 

1,075,700

 

11,668,106

 

12,743,806

 

(5,069,961

)

1973

 

30 Years

 

Indian Lake I

 

Morrow, GA

 

244

 

 

839,669

 

7,398,395

 

 

627,815

 

839,669

 

8,026,210

 

8,865,879

 

(1,617,767

)

1987

 

30 Years

 

Indian Ridge

 

Waltham, MA

 

 

9,240,826

 

5,878,374

 

19,025,500

 

 

 

5,878,374

 

19,025,500

 

24,903,875

 

 

(F)

 

30 Years

 

 

S-5



 

ERP OPERATING LIMITED PARTNERSHIP

Schedule III - Real Estate and Accumulated Depreciation

December 31, 2004

 

Description

 

 

 

Initial Cost to
Company

 

Cost Capitalized
Subsequent to
Acquisition
(Improvements, net) (E)

 

Gross Amount Carried
at Close of
Period 12/31/04

 

 

 

 

 

 

 

Life Used to
Compute
Depreciation in
Latest Income
Statement (C)

 

Apartment Name

 

Location

 

Units (J)

 

Encumbrances

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures (A)

 

Total (B)

 

Accumulated
Depreciation

 

Date of
Construction

 

 

Indian Ridge I (REIT)

 

Tallahassee, FL

 

57

 

 

135,500

 

1,218,598

 

 

209,525

 

135,500

 

1,428,123

 

1,563,623

 

(228,546

)

1981

 

30 Years

 

Indian Ridge II (REIT)

 

Tallahassee, FL

 

39

 

 

94,300

 

849,192

 

 

97,914

 

94,300

 

947,106

 

1,041,406

 

(145,511

)

1982

 

30 Years

 

Indian Tree

 

Arvada, CO

 

168

 

 

881,225

 

4,552,815

 

 

1,574,849

 

881,225

 

6,127,664

 

7,008,889

 

(2,805,735

)

1983

 

30 Years

 

Indigo Springs

 

Kent, WA

 

278

 

 

1,270,500

 

11,446,902

 

 

1,902,334

 

1,270,500

 

13,349,236

 

14,619,736

 

(4,268,149

)

1991

 

30 Years

 

Iris Glen

 

Conyers, GA

 

79

 

1,661,685

 

270,458

 

2,383,030

 

 

269,213

 

270,458

 

2,652,242

 

2,922,700

 

(525,978

)

1984

 

30 Years

 

Ironwood at the Ranch

 

Westminster, CO

 

226

 

 

1,493,300

 

13,439,305

 

 

1,127,418

 

1,493,300

 

14,566,722

 

16,060,022

 

(4,142,728

)

1986

 

30 Years

 

Isle at Arrowhead Ranch

 

Glendale, AZ

 

256

 

 

1,650,237

 

19,593,123

 

 

689,680

 

1,650,237

 

20,282,804

 

21,933,041

 

(5,089,909

)

1996

 

30 Years

 

Isles at Sawgrass

 

Sunrise, FL

 

368

 

 

7,360,000

 

18,750,693

 

 

836,610

 

7,360,000

 

19,587,303

 

26,947,303

 

(2,417,186

)

1991-1995

 

30 Years

 

Ivory Wood

 

Bothell, WA

 

144

 

 

2,732,800

 

13,888,282

 

 

109,805

 

2,732,800

 

13,998,087

 

16,730,887

 

(397,217

)

2000

 

30 Years

 

Ivy Place

 

Atlanta, GA

 

122

 

 

802,950

 

7,228,257

 

 

1,108,006

 

802,950

 

8,336,262

 

9,139,212

 

(2,793,461

)

1978

 

30 Years

 

Jaclen Towers

 

Beverly, NJ

 

100

 

1,846,425

 

437,072

 

2,921,735

 

 

481,757

 

437,072

 

3,403,492

 

3,840,564

 

(589,283

)

1976

 

30 Years

 

James Street Crossing

 

Kent, WA

 

300

 

16,379,123

 

2,081,254

 

18,748,337

 

 

1,004,928

 

2,081,254

 

19,753,265

 

21,834,519

 

(5,271,007

)

1989

 

30 Years

 

Jefferson Way I

 

Orange Park, FL

 

56

 

1,000,621

 

147,799

 

1,302,268

 

 

320,768

 

147,799

 

1,623,036

 

1,770,835

 

(352,958

)

1987

 

30 Years

 

Junipers at Yarmouth

 

Yarmouth, ME

 

225

 

 

1,355,700

 

7,860,135

 

 

1,358,073

 

1,355,700

 

9,218,208

 

10,573,908

 

(2,911,277

)

1970

 

30 Years

 

Jupiter Cove I

 

Jupiter, FL

 

63

 

1,504,253

 

233,932

 

2,060,900

 

 

411,275

 

233,932

 

2,472,174

 

2,706,107

 

(562,196

)

1987

 

30 Years

 

Jupiter Cove II

 

Jupiter, FL

 

61

 

1,485,940

 

1,220,000

 

483,833

 

 

256,117

 

1,220,000

 

739,950

 

1,959,950

 

(174,000

)

1987

 

30 Years

 

Jupiter Cove III

 

Jupiter, FL

 

63

 

1,582,555

 

242,010

 

2,131,722

 

 

251,001

 

242,010

 

2,382,723

 

2,624,733

 

(482,176

)

1987

 

30 Years

 

Kempton Downs

 

Gresham, OR

 

278

 

 

1,217,349

 

10,943,372

 

 

1,935,825

 

1,217,349

 

12,879,197

 

14,096,545

 

(4,894,670

)

1990

 

30 Years

 

Ketwood

 

Kettering, OH

 

93

 

 

266,443

 

2,347,655

 

 

363,454

 

266,443

 

2,711,109

 

2,977,552

 

(608,337

)

1979

 

30 Years

 

Keystone

 

Austin, TX

 

166

 

 

498,500

 

4,487,295

 

 

1,305,265

 

498,500

 

5,792,560

 

6,291,060

 

(2,440,621

)

1981

 

30 Years

 

Kings Colony

 

Savannah, GA

 

89

 

1,914,070

 

230,149

 

2,027,865

 

 

269,045

 

230,149

 

2,296,910

 

2,527,059

 

(511,926

)

1987

 

30 Years

 

Kingsport

 

Alexandria, VA

 

415

 

 

 

1,262,250

 

12,198,024

 

 

3,249,132

 

1,262,250

 

15,447,156

 

16,709,406

 

(5,868,986

)

1986

 

30 Years

 

Kirby Place

 

Houston, TX

 

362

 

 

3,621,600

 

25,896,774

 

 

1,279,979

 

3,621,600

 

27,176,753

 

30,798,353

 

(7,145,671

)

1994

 

30 Years

 

La Mirage

 

San Diego, CA

 

1,070

 

 

28,895,200

 

95,567,943

 

 

5,398,766

 

28,895,200

 

100,966,709

 

129,861,909

 

(27,009,669

)

1988/1992

 

30 Years

 

La Mirage IV

 

San Diego, CA

 

340

 

 

6,000,000

 

47,449,353

 

 

31,426

 

6,000,000

 

47,480,779

 

53,480,779

 

(5,207,446

)

2001

 

30 Years

 

La Tour Fontaine

 

Houston, TX

 

162

 

 

2,916,000

 

15,917,178

 

 

892,412

 

2,916,000

 

16,809,591

 

19,725,591

 

(3,800,140

)

1994

 

30 Years

 

Ladera

 

Phoenix, AZ

 

248

 

(Q

)

2,978,879

 

20,640,453

 

 

676,946

 

2,978,879

 

21,317,400

 

24,296,279

 

(5,342,405

)

1995

 

30 Years

 

Laguna Clara

 

Santa Clara, CA

 

264

 

16,980,452

 

13,642,420

 

29,707,475

 

 

139,451

 

13,642,420

 

29,846,926

 

43,489,346

 

(1,129,028

)

1972

 

30 Years

 

Lakes at Vinings

 

Atlanta, GA

 

464

 

20,928,154

 

6,498,000

 

21,832,252

 

 

2,133,971

 

6,498,000

 

23,966,223

 

30,464,223

 

(6,102,433

)

1972/1975

 

30 Years

 

Lakeshore at Preston

 

Plano, TX

 

302

 

 

3,325,800

 

15,208,348

 

 

962,054

 

3,325,800

 

16,170,401

 

19,496,201

 

(3,938,455

)

1992

 

30 Years

 

Lakeshore I (GA)

 

Ft. Oglethorpe, GA

 

79

 

1,202,296

 

169,375

 

1,492,378

 

 

349,287

 

169,375

 

1,841,665

 

2,011,040

 

(453,172

 

1986

 

30 Years

 

Lakeview

 

Lodi, CA

 

138

 

7,286,000

 

950,000

 

5,750,629

 

 

988,476

 

950,000

 

6,739,105

 

7,689,105

 

(1,030,871

)

1983

 

30 Years

 

Lakeville Resort

 

Petaluma, CA

 

492

 

 

2,736,500

 

24,610,651

 

 

3,030,474

 

2,736,500

 

27,641,124

 

30,377,624

 

(8,675,873

)

1984

 

30 Years

 

Lakewood

 

Tulsa, OK

 

152

 

5,600,000

 

855,000

 

6,480,729

 

 

662,558

 

855,000

 

7,143,287

 

7,998,287

 

(1,180,057

)

1985

 

30 Years

 

Lakewood Greens

 

Dallas, TX

 

252

 

7,766,087

 

2,019,600

 

9,026,907

 

 

662,722

 

2,019,600

 

9,689,628

 

11,709,228

 

(2,491,710

)

1986

 

30 Years

 

Lakewood Oaks

 

Dallas, TX

 

352

 

 

1,631,600

 

14,686,192

 

 

2,133,304

 

1,631,600

 

16,819,495

 

18,451,095

 

(6,532,548

)

1987

 

30 Years

 

Landera

 

San Antonio, TX

 

184

 

 

766,300

 

6,896,811

 

 

1,108,443

 

766,300

 

8,005,255

 

8,771,555

 

(2,533,836

)

1983

 

30 Years

 

Landings at Port Imperial

 

W. New York, NJ

 

276

 

 

27,246,045

 

37,741,050

 

 

509,265

 

27,246,045

 

38,250,315

 

65,496,360

 

(5,428,415

)

1999

 

30 Years

 

Landings of Lake Zurich

 

Lake Zurich, IL

 

206

 

16,800,000

 

2,250,338

 

17,668,851

 

 

279,231

 

2,250,338

 

17,948,082

 

20,198,421

 

(571,857

)

2000

 

30 Years

 

Lantern Cove

 

Foster City, CA

 

232

 

36,403,000

 

6,945,000

 

21,945,503

 

 

846,634

 

6,945,000

 

22,792,136

 

29,737,136

 

(3,026,656

)

1985

 

30 Years

 

Larkspur I (Hil)

 

Hilliard, OH

 

60

 

 

179,628

 

1,582,519

 

 

311,026

 

179,628

 

1,893,545

 

2,073,173

 

(416,014

)

1983

 

30 Years

 

Larkspur Shores

 

Hilliard, OH

 

342

 

 

17,107,300

 

31,399,237

 

 

3,629,618

 

17,107,300

 

35,028,855

 

52,136,155

 

(9,052,654

)

1983

 

30 Years

 

Larkspur Woods

 

Sacramento, CA

 

232

 

 

5,802,900

 

14,576,106

 

 

1,207,348

 

5,802,900

 

15,783,454

 

21,586,354

 

(4,291,619

)

1989/1993

 

30 Years

 

LaSalle

 

Beaverton, OR (G)

 

554

 

33,793,865

 

7,202,000

 

35,877,612

 

 

956,081

 

7,202,000

 

36,833,692

 

44,035,692

 

(3,023,189

)

1998

 

30 Years

 

Laurel Bay

 

Ypsilanti, MI

 

68

 

 

186,004

 

1,639,366

 

 

281,881

 

186,004

 

1,921,247

 

2,107,251

 

(391,457

)

1989

 

30 Years

 

Laurel Glen

 

Acworth, GA

 

81

 

1,655,375

 

289,509

 

2,550,891

 

 

244,329

 

289,509

 

2,795,220

 

3,084,729

 

(555,275

)

1986

 

30 Years

 

Laurel Ridge

 

Chapel Hill, NC

 

160

 

 

160,000

 

3,206,076

 

 

3,522,787

 

160,000

 

6,728,863

 

6,888,863

 

(4,255,349

)

1975

 

30 Years

 

Laurel Ridge II

 

Chapel Hill, NC

 

 

 

22,551

 

 

 

 

22,551

 

 

22,551

 

 

(F)

 

30 Years

 

Legacy at Highlands Ranch

 

Highlands Ranch, CO

 

422

 

24,830,208

 

6,330,000

 

37,556,449

 

 

27,300

 

6,330,000

 

37,583,749

 

43,913,749

 

(337,167

)

1999

 

30 Years

 

Legacy Park Central

 

Concord, CA

 

259

 

36,210,339

 

6,469,230

 

44,565,469

 

 

14,786

 

6,469,230

 

44,580,255

 

51,049,485

 

(1,142,450

)

2003

 

30 Years

 

Legends at Preston

 

Morrisville, NC

 

382

 

(U

)

3,056,000

 

27,150,721

 

 

454,700

 

3,056,000

 

27,605,420

 

30,661,420

 

(4,217,275

)

2000

 

30 Years

 

Lexford Apartment Homes

 

Miami, FL

 

72

 

1,251,771

 

191,986

 

1,691,254

 

 

249,229

 

191,986

 

1,940,482

 

2,132,468

 

(379,834

)

1987

 

30 Years

 

Lexington Farm

 

Alpharetta, GA

 

352

 

 

3,521,900

 

22,888,305

 

 

937,216

 

3,521,900

 

23,825,522

 

27,347,422

 

(5,376,439

)

1995

 

30 Years

 

Lexington Glen

 

Atlanta, GA

 

480

 

 

5,760,000

 

40,190,507

 

 

2,444,677

 

5,760,000

 

42,635,184

 

48,395,184

 

(9,549,983

)

1990

 

30 Years

 

Lexington Park

 

Orlando, FL

 

252

 

 

2,016,000

 

12,346,726

 

 

1,302,812

 

2,016,000

 

13,649,537

 

15,665,537

 

(3,353,117

)

1988

 

30 Years

 

Liberty Park

 

Brain Tree, MA

 

202

 

26,500,000

 

5,977,504

 

26,748,835

 

 

245,445

 

5,977,504

 

26,994,280

 

32,971,784

 

(1,678,470

)

2000

 

30 Years

 

Lincoln Heights

 

Quincy, MA

 

336

 

(R

)

5,928,400

 

33,595,262

 

 

1,124,674

 

5,928,400

 

34,719,936

 

40,648,336

 

(8,698,107

)

1991

 

30 Years

 

Lindendale

 

Columbus, OH

 

77

 

1,246,157

 

209,159

 

1,842,816

 

 

316,167

 

209,159

 

2,158,982

 

2,368,141

 

(473,320

)

1987

 

30 Years

 

Link Terrace

 

Hinesville, GA

 

54

 

 

121,839

 

1,073,581

 

 

206,261

 

121,839

 

1,279,841

 

1,401,680

 

(275,218

)

1984

 

30 Years

 

Little Cottonwoods

 

Tempe, AZ

 

379

 

 

3,050,133

 

26,991,689

 

 

1,491,773

 

3,050,133

 

28,483,462

 

31,533,595

 

(7,464,295

)

1984

 

30 Years

 

Lodge (OK), The

 

Tulsa, OK

 

208

 

 

313,371

 

2,750,936

 

 

2,020,555

 

313,371

 

4,771,491

 

5,084,862

 

(3,672,328

)

1979

 

30 Years

 

Lodge (TX), The

 

San Antonio, TX

 

384

 

 

1,363,636

 

7,464,586

 

 

3,174,967

 

1,363,636

 

10,639,553

 

12,003,189

 

(6,053,471

)

1989/1990

 

30 Years

 

Lofton Place

 

Tampa, FL

 

280

 

 

2,240,000

 

16,679,214

 

 

1,479,566

 

2,240,000

 

18,158,780

 

20,398,780

 

(4,319,588

)

1988

 

30 Years

 

Longfellow Glen

 

Sudbury, MA

 

120

 

4,215,246

 

1,094,273

 

7,314,994

 

 

1,530,341

 

1,094,273

 

8,845,335

 

9,939,609

 

(1,361,991

)

1984

 

30 Years

 

Longfellow Place

 

Boston, MA (G)

 

710

 

 

53,164,160

 

183,940,619

 

 

21,372,867

 

53,164,160

 

205,313,486

 

258,477,646

 

(41,568,834

)

1975

 

30 Years

 

Longwood

 

Decatur, GA

 

268

 

 

1,454,048

 

13,087,837

 

 

1,082,842

 

1,454,048

 

14,170,679

 

15,624,727

 

(5,533,304

)

1992

 

30 Years

 

Longwood (KY)

 

Lexington, KY

 

60

 

 

146,309

 

1,289,042

 

 

247,496

 

146,309

 

1,536,538

 

1,682,847

 

(348,197

)

1985

 

30 Years

 

Loomis Manor

 

West Hartford, CT

 

43

 

(P

)

422,350

 

2,823,326

 

 

249,410

 

422,350

 

3,072,735

 

3,495,086

 

(503,715

)

1948

 

30 Years

 

Madison at Cedar Springs

 

Dallas, TX

 

380

 

(R

)

2,470,000

 

33,194,620

 

 

798,402

 

2,470,000

 

33,993,023

 

36,463,023

 

(7,487,590

)

1995

 

30 Years

 

Madison at Chase Oaks

 

Plano, TX

 

470

 

(R

)

3,055,000

 

28,932,885

 

 

1,319,755

 

3,055,000

 

30,252,640

 

33,307,640

 

(6,895,431

)

1995

 

30 Years

 

Madison at River Sound

 

Lawrenceville, GA

 

586

 

(U

)

3,666,999

 

47,387,106

 

 

1,109,283

 

3,666,999

 

48,496,389

 

52,163,388

 

(10,688,084

)

1996

 

30 Years

 

Madison at Round Grove

 

Lewisville, TX

 

404

 

(Q

)

2,626,000

 

25,682,373

 

 

1,105,771

 

2,626,000

 

26,788,144

 

29,414,144

 

(6,134,751

)

1995

 

30 Years

 

Madison at Scofield Farms

 

Austin, TX

 

260

 

12,228,292

 

2,080,000

 

14,597,971

 

 

912,614

 

2,080,000

 

15,510,585

 

17,590,585

 

(2,659,953

)

1996

 

30 Years

 

Madison at Stone Creek

 

Austin, TX

 

390

 

 

2,535,000

 

22,611,700

 

 

1,076,877

 

2,535,000

 

23,688,576

 

26,223,576

 

(5,565,233

)

1995

 

30 Years

 

Madison at the Arboretum

 

Austin, TX

 

161

 

 

1,046,500

 

9,638,269

 

 

745,152

 

1,046,500

 

10,383,421

 

11,429,921

 

(2,512,190

)

1995

 

30 Years

 

Madison at Walnut Creek

 

Austin, TX

 

342

 

 

2,737,600

 

14,623,574

 

 

1,293,096

 

2,737,600

 

15,916,669

 

18,654,269

 

(4,460,782

)

1994

 

30 Years

 

Madison at Wells Branch

 

Austin, TX

 

300

 

 

2,377,344

 

16,370,879

 

 

1,172,821

 

2,377,344

 

17,543,699

 

19,921,044

 

(3,059,418

)

1995

 

30 Years

 

Madison on Melrose

 

Richardson, TX

 

200

 

 

1,300,000

 

15,096,551

 

 

465,462

 

1,300,000

 

15,562,013

 

16,862,013

 

(3,500,152

)

1995

 

30 Years

 

Madison on the Parkway

 

Dallas, TX

 

376

 

 

2,444,000

 

22,505,043

 

 

998,686

 

2,444,000

 

23,503,729

 

25,947,729

 

(5,438,721

)

1995

 

30 Years

 

 

S-6



 

ERP OPERATING LIMITED PARTNERSHIP

Schedule III - Real Estate and Accumulated Depreciation

December 31, 2004

 

Description

 

 

 

Initial Cost to
Company

 

Cost Capitalized
Subsequent to
Acquisition
(Improvements, net) (E)

 

Gross Amount Carried
at Close of
Period 12/31/04

 

 

 

 

 

 

 

Life Used to
Compute
Depreciation in
Latest Income
Statement (C)

 

Apartment Name

 

Location

 

Units (J)

 

Encumbrances

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures (A)

 

Total (B)

 

Accumulated
Depreciation

 

Date of
Construction

 

 

Magnolia at Whitlock

 

Marietta, GA

 

152

 

 

132,979

 

1,526,005

 

 

3,543,532

 

132,979

 

5,069,537

 

5,202,516

 

(2,887,149

)

1971

 

30 Years

 

Manchester (REIT)

 

Jacksonville, FL

 

78

 

1,203,850

 

184,100

 

1,657,194

 

 

270,348

 

184,100

 

1,927,541

 

2,111,641

 

(304,856

)

1985

 

30 Years

 

Marabou Mills I

 

Indianapolis, IN

 

86

 

1,277,316

 

224,178

 

1,974,952

 

 

262,450

 

224,178

 

2,237,402

 

2,461,580

 

(504,740

)

1986

 

30 Years

 

Marabou Mills II

 

Indianapolis, IN

 

63

 

 

192,186

 

1,693,220

 

 

135,414

 

192,186

 

1,828,634

 

2,020,821

 

(385,310

)

1987

 

30 Years

 

Marabou Mills III

 

Indianapolis, IN

 

59

 

1,140,520

 

171,557

 

1,511,602

 

 

114,701

 

171,557

 

1,626,303

 

1,797,860

 

(338,114

)

1987

 

30 Years

 

Mariner Club (FL)

 

Pembroke Pines, FL

 

304

 

 

1,824,500

 

20,771,566

 

 

2,136,280

 

1,824,500

 

22,907,846

 

24,732,346

 

(5,052,355

)

1988

 

30 Years

 

Mariners Wharf

 

Orange Park, FL

 

272

 

 

1,861,200

 

16,744,951

 

 

1,128,478

 

1,861,200

 

17,873,429

 

19,734,629

 

(4,770,601

)

1989

 

30 Years

 

Marks

 

Englewood, CO (G)

 

616

 

19,195,000

 

4,928,500

 

44,621,814

 

 

3,039,690

 

4,928,500

 

47,661,503

 

52,590,003

 

(13,362,054

)

1987

 

30 Years

 

Marquessa

 

Corona Hills, CA

 

336

 

 

6,888,500

 

21,604,584

 

 

1,750,384

 

6,888,500

 

23,354,968

 

30,243,468

 

(6,245,286

)

1992

 

30 Years

 

Marsh Landing I

 

Brunswick, GA

 

57

 

 

133,193

 

1,173,573

 

 

329,630

 

133,193

 

1,503,203

 

1,636,396

 

(353,922

)

1984

 

30 Years

 

Marshlanding II

 

Brunswick, GA

 

48

 

 

111,187

 

979,679

 

 

178,555

 

111,187

 

1,158,234

 

1,269,422

 

(261,647

)

1986

 

30 Years

 

Martha Lake

 

Lynnwood, WA

 

155

 

 

821,200

 

7,405,070

 

 

1,182,229

 

821,200

 

8,587,299

 

9,408,499

 

(2,550,229

)

1991

 

30 Years

 

Martins Landing

 

Roswell, GA

 

300

 

11,840,996

 

4,802,000

 

12,899,972

 

 

1,464,149

 

4,802,000

 

14,364,121

 

19,166,121

 

(3,762,920

)

1972

 

30 Years

 

McDowell Place

 

Naperville, IL

 

400

 

(R

)

2,580,400

 

23,209,629

 

 

2,444,503

 

2,580,400

 

25,654,132

 

28,234,532

 

(7,943,825

)

1988

 

30 Years

 

Meadow Ridge

 

Norwich, CT

 

120

 

4,314,082

 

747,957

 

4,999,937

 

 

171,799

 

747,957

 

5,171,737

 

5,919,693

 

(844,335

)

1987

 

30 Years

 

Meadowland

 

Bogart, GA

 

60

 

 

152,395

 

1,342,663

 

 

85,687

 

152,395

 

1,428,350

 

1,580,745

 

(303,395

)

1984

 

30 Years

 

Meadowood (Cin)

 

Cincinnati, OH

 

106

 

 

330,734

 

2,913,731

 

 

472,251

 

330,734

 

3,385,982

 

3,716,717

 

(717,874

)

1985

 

30 Years

 

Meadowood (Cuy)

 

Cuyahoga Falls, OH

 

59

 

 

201,407

 

1,774,784

 

 

259,350

 

201,407

 

2,034,134

 

2,235,540

 

(411,178

)

1985

 

30 Years

 

Meadowood (Fra)

 

Franklin, IN

 

51

 

923,896

 

129,252

 

1,138,733

 

 

206,312

 

129,252

 

1,345,045

 

1,474,297

 

(316,357

)

1983

 

30 Years

 

Meadowood (New)

 

Newburgh, IN

 

65

 

901,306

 

131,546

 

1,159,064

 

 

183,765

 

131,546

 

1,342,829

 

1,474,375

 

(297,143

)

1984

 

30 Years

 

Meadowood (Nic)

 

Nicholasville, KY

 

67

 

1,306,284

 

173,223

 

1,526,283

 

 

275,486

 

173,223

 

1,801,769

 

1,974,992

 

(406,242

)

1983

 

30 Years

 

Meadowood (Tem)

 

Temperance, MI

 

57

 

1,259,217

 

173,675

 

1,530,262

 

 

164,710

 

173,675

 

1,694,972

 

1,868,647

 

(343,340

)

1984

 

30 Years

 

Meadowood Apts. (Man)

 

Mansfield, OH

 

50

 

 

118,504

 

1,044,002

 

 

170,785

 

118,504

 

1,214,787

 

1,333,291

 

(272,630

)

1983

 

30 Years

 

Meadowood I (GA)

 

Norcross, GA

 

61

 

 

205,468

 

1,810,393

 

 

270,600

 

205,468

 

2,080,993

 

2,286,460

 

(443,539

)

1982

 

30 Years

 

Meadowood I (OH)

 

Columbus, OH

 

60

 

 

146,912

 

1,294,458

 

 

365,004

 

146,912

 

1,659,462

 

1,806,374

 

(397,148

)

1984

 

30 Years

 

Meadowood II (GA)

 

Norcross, GA

 

51

 

 

176,968

 

1,559,544

 

 

161,838

 

176,968

 

1,721,383

 

1,898,351

 

(366,655

)

1984

 

30 Years

 

Meadowood II (OH)

 

Columbus, OH

 

23

 

451,232

 

57,802

 

509,199

 

 

131,106

 

57,802

 

640,305

 

698,106

 

(147,229

)

1985

 

30 Years

 

Meadows I (OH), The

 

Columbus, OH

 

60

 

 

150,800

 

1,328,616

 

 

246,697

 

150,800

 

1,575,313

 

1,726,113

 

(362,183

)

1985

 

30 Years

 

Meadows II (OH), The

 

Columbus, OH

 

60

 

1,111,775

 

186,636

 

1,644,521

 

 

226,121

 

186,636

 

1,870,642

 

2,057,278

 

(411,956

)

1987

 

30 Years

 

Meldon Place

 

Toledo, OH

 

127

 

2,204,599

 

288,434

 

2,541,701

 

 

592,118

 

288,434

 

3,133,819

 

3,422,253

 

(817,209

)

1978

 

30 Years

 

Merrifield

 

Salisbury, MD

 

95

 

1,850,593

 

268,712

 

2,367,645

 

 

322,539

 

268,712

 

2,690,183

 

2,958,895

 

(555,614

)

1988

 

30 Years

 

Merrill Creek

 

Lakewood, WA

 

149

 

 

814,200

 

7,330,606

 

 

455,885

 

814,200

 

7,786,491

 

8,600,691

 

(2,205,184

)

1994

 

30 Years

 

Merritt at Satellite Place

 

Duluth, GA

 

424

 

(S

)

3,400,000

 

30,115,674

 

 

640,803

 

3,400,000

 

30,756,478

 

34,156,478

 

(5,799,699

)

1999

 

30 Years

 

Mesa Del Oso

 

Albuquerque, NM

 

221

 

10,575,735

 

4,305,000

 

12,112,957

 

 

550,912

 

4,305,000

 

12,663,869

 

16,968,869

 

(1,941,777

)

1983

 

30 Years

 

Miguel Place

 

Port Richey, FL

 

91

 

1,403,066

 

199,349

 

1,756,482

 

 

465,526

 

199,349

 

2,222,009

 

2,421,358

 

(515,996

)

1987

 

30 Years

 

Mill Creek

 

Milpitas, CA

 

516

 

 

12,858,693

 

57,168,503

 

 

944,669

 

12,858,693

 

58,113,172

 

70,971,865

 

(3,592,125

)

1991

 

30 Years

 

Mill Pond

 

Millersville, MD

 

240

 

7,300,000

 

2,880,000

 

8,468,462

 

 

1,225,792

 

2,880,000

 

9,694,254

 

12,574,254

 

(2,423,456

)

1984

 

30 Years

 

Millburn

 

Stow, OH

 

52

 

 

192,062

 

1,692,276

 

 

243,634

 

192,062

 

1,935,910

 

2,127,972

 

(377,177

)

1984

 

30 Years

 

Millburn Court I

 

Centerville, OH

 

65

 

 

260,000

 

1,246,757

 

 

128,394

 

260,000

 

1,375,150

 

1,635,150

 

(235,950

)

1979

 

30 Years

 

Millburn Court II

 

Centerville, OH

 

51

 

847,143

 

122,870

 

1,082,698

 

 

306,157

 

122,870

 

1,388,854

 

1,511,725

 

(349,669

)

1981

 

30 Years

 

Mira Flores

 

Palm Beach Gardens, FL

 

352

 

 

7,040,000

 

22,515,299

 

 

550,895

 

7,040,000

 

23,066,194

 

30,106,194

 

(2,592,195

)

1996

 

30 Years

 

Mission Bay

 

Orlando, FL

 

304

 

 

2,432,000

 

21,623,560

 

 

1,175,146

 

2,432,000

 

22,798,706

 

25,230,706

 

(5,243,256

)

1991

 

30 Years

 

Mission Hills

 

Oceanside, CA

 

282

 

9,978,164

 

5,640,000

 

21,130,732

 

 

724,441

 

5,640,000

 

21,855,173

 

27,495,173

 

(3,431,159

)

1984

 

30 Years

 

Misty Woods

 

Cary, NC

 

360

 

 

720,790

 

18,063,934

 

 

2,276,854

 

720,790

 

20,340,788

 

21,061,578

 

(5,440,061

)

1984

 

30 Years

 

Montecito

 

Valencia, CA

 

210

 

 

8,400,000

 

24,709,146

 

 

511,649

 

8,400,000

 

25,220,795

 

33,620,795

 

(3,587,840

)

1999

 

30 Years

 

Montevista

 

Dallas, TX

 

350

 

 

3,931,550

 

19,788,568

 

 

680,654

 

3,931,550

 

20,469,223

 

24,400,773

 

(2,179,403

)

2000

 

30 Years

 

Montgomery Court I (MI)

 

Haslett, MI

 

59

 

1,115,312

 

156,298

 

1,377,153

 

 

356,839

 

156,298

 

1,733,992

 

1,890,290

 

(383,878

)

1984

 

30 Years

 

Montgomery Court I (OH)

 

Dublin, OH

 

60

 

1,193,960

 

163,755

 

1,442,643

 

 

386,489

 

163,755

 

1,829,132

 

1,992,887

 

(426,340

)

1985

 

30 Years

 

Montgomery Court II (OH)

 

Dublin, OH

 

57

 

 

149,734

 

1,319,417

 

 

213,328

 

149,734

 

1,532,746

 

1,682,479

 

(337,008

)

1986

 

30 Years

 

Montierra

 

Scottsdale, AZ

 

249

 

(Q

)

3,455,000

 

17,266,787

 

 

429,480

 

3,455,000

 

17,696,266

 

21,151,266

 

(3,670,042

)

1999

 

30 Years

 

Montierra (CA)

 

San Diego, CA

 

272

 

17,613,777

 

8,160,000

 

29,360,938

 

 

1,282,390

 

8,160,000

 

30,643,328

 

38,803,328

 

(4,791,765

)

1990

 

30 Years

 

Montrose Square

 

Columbus, OH

 

129

 

 

193,266

 

1,703,260

 

 

512,715

 

193,266

 

2,215,975

 

2,409,241

 

(564,131

)

1987

 

30 Years

 

Morgan Trace

 

Union City, GA

 

80

 

 

239,102

 

2,105,728

 

 

336,135

 

239,102

 

2,441,863

 

2,680,965

 

(507,307

)

1986

 

30 Years

 

Morningside

 

Scottsdale, AZ

 

160

 

 

670,470

 

12,607,976

 

 

771,645

 

670,470

 

13,379,621

 

14,050,091

 

(3,463,821

)

1989

 

30 Years

 

Mosswood I

 

Winter Springs, FL

 

58

 

 

163,294

 

1,438,796

 

 

393,746

 

163,294

 

1,832,541

 

1,995,835

 

(392,232

)

1981

 

30 Years

 

Mosswood II

 

Winter Springs, FL

 

89

 

1,433,020

 

275,330

 

2,426,158

 

 

501,847

 

275,330

 

2,928,005

 

3,203,335

 

(609,524

)

1982

 

30 Years

 

Mountain Park Ranch

 

Phoenix, AZ

 

240

 

(O

)

1,662,332

 

18,260,276

 

 

947,522

 

1,662,332

 

19,207,798

 

20,870,130

 

(5,016,400

)

1994

 

30 Years

 

Mountain Terrace

 

Stevenson Ranch, CA

 

510

 

 

3,966,500

 

35,814,995

 

 

1,861,843

 

3,966,500

 

37,676,838

 

41,643,338

 

(10,841,998

)

1992

 

30 Years

 

Nehoiden Glen

 

Needham, MA

 

61

 

1,579,980

 

634,538

 

4,241,755

 

 

269,303

 

634,538

 

4,511,057

 

5,145,595

 

(696,968

)

1978

 

30 Years

 

Newberry I

 

Lansing, MI

 

62

 

 

183,509

 

1,616,913

 

 

294,682

 

183,509

 

1,911,596

 

2,095,105

 

(429,211

)

1985

 

30 Years

 

Newberry II

 

Lansing, MI

 

48

 

 

142,292

 

1,253,951

 

 

150,661

 

142,292

 

1,404,612

 

1,546,905

 

(313,508

)

1986

 

30 Years

 

Newport Heights

 

Tukwila, WA

 

80

 

 

391,200

 

3,522,780

 

 

668,608

 

391,200

 

4,191,388

 

4,582,588

 

(1,687,193

)

1985

 

30 Years

 

Noonan Glen

 

Winchester, MA

 

18

 

463,505

 

151,344

 

1,011,700

 

 

140,922

 

151,344

 

1,152,623

 

1,303,966

 

(188,712

)

1983

 

30 Years

 

North Hill

 

Atlanta, GA

 

420

 

15,005,000

 

2,525,300

 

18,550,989

 

 

5,196,592

 

2,525,300

 

23,747,581

 

26,272,881

 

(8,335,012

)

1984

 

30 Years

 

Northampton 1

 

Largo, MD

 

344

 

19,151,947

 

1,843,200

 

17,528,381

 

 

3,533,447

 

1,843,200

 

21,061,828

 

22,905,028

 

(8,657,186

)

1977

 

30 Years

 

Northampton 2

 

Largo, MD

 

276

 

 

1,513,500

 

14,246,990

 

 

1,839,013

 

1,513,500

 

16,086,003

 

17,599,503

 

(6,068,531

)

1988

 

30 Years

 

Northglen

 

Valencia, CA

 

234

 

14,526,153

 

9,360,000

 

20,778,553

 

 

615,241

 

9,360,000

 

21,393,794

 

30,753,794

 

(3,155,237

)

1988

 

30 Years

 

Northridge

 

Pleasant Hill, CA

 

221

 

 

5,527,800

 

14,691,705

 

 

1,937,959

 

5,527,800

 

16,629,664

 

22,157,464

 

(4,306,125

)

1974

 

30 Years

 

Northridge (GA)

 

Carrolton, GA

 

77

 

 

238,811

 

2,104,181

 

 

193,708

 

238,811

 

2,297,889

 

2,536,699

 

(480,896

)

1985

 

30 Years

 

Northrup Court I

 

Coraopolis, PA

 

60

 

1,280,579

 

189,246

 

1,667,463

 

 

205,942

 

189,246

 

1,873,405

 

2,062,651

 

(397,996

)

1985

 

30 Years

 

Northrup Court II

 

Coraopolis, PA

 

49

 

 

157,190

 

1,385,018

 

 

124,810

 

157,190

 

1,509,828

 

1,667,018

 

(322,481

)

1985

 

30 Years

 

Northwoods Village

 

Cary, NC

 

228

 

 

1,369,700

 

11,460,337

 

 

1,682,449

 

1,369,700

 

13,142,786

 

14,512,486

 

(3,858,921

)

1986

 

30 Years

 

Norton Glen

 

Norton, MA

 

150

 

4,090,315

 

1,012,556

 

6,768,727

 

 

1,544,561

 

1,012,556

 

8,313,288

 

9,325,843

 

(1,417,387

)

1983

 

30 Years

 

Nova Glen I

 

Daytona Beach, FL

 

62

 

 

142,086

 

1,251,930

 

 

476,522

 

142,086

 

1,728,452

 

1,870,538

 

(431,168

)

1984

 

30 Years

 

Nova Glen II

 

Daytona Beach, FL

 

81

 

 

175,168

 

1,543,420

 

 

421,224

 

175,168

 

1,964,644

 

2,139,811

 

(443,569

)

1986

 

30 Years

 

Novawood I

 

Daytona Beach, FL

 

58

 

149,213

 

122,311

 

1,077,897

 

 

392,066

 

122,311

 

1,469,963

 

1,592,275

 

(319,923

)

1980

 

30 Years

 

Novawood II

 

Daytona Beach, FL

 

61

 

 

144,401

 

1,272,484

 

 

257,493

 

144,401

 

1,529,977

 

1,674,379

 

(316,622

)

1980

 

30 Years

 

Oak Gardens

 

Hollywood, FL

 

105

 

 

329,968

 

2,907,288

 

 

325,962

 

329,968

 

3,233,249

 

3,563,217

 

(667,609

)

1988

 

30 Years

 

Oak Mill 2

 

Germantown, MD

 

192

 

9,600,000

 

854,133

 

10,233,783

 

 

1,343,262

 

854,133

 

11,577,045

 

12,431,178

 

(3,534,283

)

1985

 

30 Years

 

 

S-7



 

ERP OPERATING LIMITED PARTNERSHIP

Schedule III - Real Estate and Accumulated Depreciation

December 31, 2004

 

Description

 

 

 

Initial Cost to
Company

 

Cost Capitalized
Subsequent to
Acquisition
(Improvements, net) (E)

 

Gross Amount Carried
at Close of
Period 12/31/04

 

 

 

 

 

 

 

Life Used to
Compute
Depreciation in
Latest Income
Statement (C)

 

Apartment Name

 

Location

 

Units (J)

 

Encumbrances

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures (A)

 

Total (B)

 

Accumulated
Depreciation

 

Date of
Construction

 

 

Oak Park North

 

Agoura Hills, CA

 

220

 

(I

)

1,706,900

 

15,362,666

 

 

849,534

 

1,706,900

 

16,212,200

 

17,919,100

 

(5,308,426

)

1990

 

30 Years

 

Oak Park South

 

Agoura Hills, CA

 

224

 

(I

)

1,683,800

 

15,154,608

 

 

934,602

 

1,683,800

 

16,089,210

 

17,773,010

 

(5,318,141

)

1989

 

30 Years

 

Oak Ridge

 

Clermont, FL

 

63

 

1,133,804

 

173,617

 

1,529,936

 

 

337,313

 

173,617

 

1,867,250

 

2,040,866

 

(448,021

)

1985

 

30 Years

 

Oak Shade

 

Orange City, FL

 

82

 

 

229,403

 

2,021,290

 

 

379,036

 

229,403

 

2,400,326

 

2,629,729

 

(490,223

)

1985

 

30 Years

 

Oakland Hills

 

Margate, FL

 

189

 

 

3,040,000

 

4,930,604

 

 

623,229

 

3,040,000

 

5,553,832

 

8,593,832

 

(1,029,500

)

1987

 

30 Years

 

Oakley Woods

 

Union City, GA

 

60

 

1,039,270

 

165,449

 

1,457,485

 

 

333,530

 

165,449

 

1,791,015

 

1,956,464

 

(416,167

)

1984

 

30 Years

 

Oaks

 

Santa Clarita, CA

 

520

 

45,346,636

 

23,400,000

 

61,020,438

 

 

592,808

 

23,400,000

 

61,613,246

 

85,013,246

 

(3,397,866

)

2000

 

30 Years

 

Oaks (NC)

 

Charlotte, NC

 

318

 

 

2,196,744

 

23,601,540

 

 

592,535

 

2,196,744

 

24,194,075

 

26,390,819

 

(5,411,979

)

1996

 

30 Years

 

Oakwood Manor

 

Hollywood, FL

 

63

 

 

173,247

 

1,525,973

 

 

107,001

 

173,247

 

1,632,974

 

1,806,221

 

(341,687

)

1986

 

30 Years

 

Oakwood Village (FL)

 

Hudson, FL

 

75

 

 

145,547

 

1,282,427

 

 

461,832

 

145,547

 

1,744,259

 

1,889,806

 

(440,445

)

1986

 

30 Years

 

Oakwood Village (FL) II

 

Hudson, FL

 

 

 

31,734

 

 

 

 

31,734

 

 

31,734

 

 

(F)

 

30 Years

 

Oakwood Village (GA)

 

Augusta, GA

 

70

 

 

161,174

 

1,420,119

 

 

200,283

 

161,174

 

1,620,402

 

1,781,576

 

(349,989

)

1985

 

30 Years

 

Ocean Walk

 

Key West, FL

 

297

 

21,079,921

 

2,838,749

 

25,545,009

 

 

1,225,250

 

2,838,749

 

26,770,259

 

29,609,007

 

(6,908,706

)

1990

 

30 Years

 

Old Archer Court

 

Gainesville, FL

 

72

 

901,193

 

170,323

 

1,500,735

 

 

385,311

 

170,323

 

1,886,046

 

2,056,370

 

(460,544

)

1977

 

30 Years

 

Old Mill Glen

 

Maynard, MA

 

50

 

1,724,089

 

396,756

 

2,652,233

 

 

245,151

 

396,756

 

2,897,383

 

3,294,139

 

(461,710

)

1983

 

30 Years

 

Olde Redmond Place

 

Redmond, WA

 

192

 

(R

)

4,807,100

 

14,126,038

 

 

1,997,525

 

4,807,100

 

16,123,563

 

20,930,663

 

(3,665,972

)

1986

 

30 Years

 

Olivewood (MI)

 

Sterling Hts., MI

 

150

 

 

519,167

 

4,574,905

 

 

664,845

 

519,167

 

5,239,750

 

5,758,917

 

(1,109,021

)

1986

 

30 Years

 

Olivewood I

 

Indianapolis, IN

 

62

 

 

184,701

 

1,627,420

 

 

432,521

 

184,701

 

2,059,941

 

2,244,643

 

(479,917

)

1985

 

30 Years

 

Olivewood II

 

Indianapolis, IN

 

67

 

1,202,744

 

186,235

 

1,640,571

 

 

274,675

 

186,235

 

1,915,245

 

2,101,480

 

(426,409

)

1986

 

30 Years

 

Olympus Towers

 

Seattle, WA (G)

 

328

 

 

14,752,034

 

73,376,841

 

 

167,959

 

14,752,034

 

73,544,800

 

88,296,834

 

(2,735,326

)

2000

 

30 Years

 

One Eton Square

 

Tulsa, OK

 

448

 

 

1,570,100

 

14,130,937

 

 

2,845,077

 

1,570,100

 

16,976,014

 

18,546,114

 

(5,276,884

)

1985

 

30 Years

 

Orchard Ridge

 

Lynnwood, WA

 

104

 

 

480,600

 

4,372,033

 

 

670,847

 

480,600

 

5,042,880

 

5,523,480

 

(1,990,358

)

1988

 

30 Years

 

Overlook Manor

 

Frederick, MD

 

108

 

 

1,299,100

 

3,930,931

 

 

1,116,086

 

1,299,100

 

5,047,017

 

6,346,117

 

(1,307,187

)

1980/1985

 

30 Years

 

Overlook Manor II

 

Frederick, MD

 

182

 

5,235,000

 

2,186,300

 

6,262,597

 

 

313,889

 

2,186,300

 

6,576,486

 

8,762,786

 

(1,645,955

)

1980/1985

 

30 Years

 

Overlook Manor III

 

Frederick, MD

 

64

 

 

1,026,300

 

3,027,390

 

 

157,356

 

1,026,300

 

3,184,746

 

4,211,046

 

(778,826

)

1980/1985

 

30 Years

 

Paces Station

 

Atlanta, GA

 

610

 

 

4,801,500

 

32,548,053

 

 

4,487,857

 

4,801,500

 

37,035,909

 

41,837,409

 

(11,074,115

)

1984-1988/1989

 

30 Years

 

Palladia

 

Hillsboro, OR

 

497

 

 

6,461,000

 

44,888,156

 

 

338,685

 

6,461,000

 

45,226,841

 

51,687,841

 

(5,760,211

)

2000

 

30 Years

 

Palm Place

 

Sarasota. FL

 

80

 

 

248,315

 

2,188,339

 

 

467,814

 

248,315

 

2,656,153

 

2,904,468

 

(616,666

)

1984

 

30 Years

 

Palm Side (REIT)

 

Palm Bay, FL

 

87

 

1,054,701

 

116,334

 

1,047,004

 

 

55,317

 

116,334

 

1,102,321

 

1,218,655

 

(64,988

)

1986

 

30 Years

 

Panther Ridge

 

Federal Way, WA

 

260

 

 

1,055,800

 

9,506,117

 

 

1,109,293

 

1,055,800

 

10,615,410

 

11,671,210

 

(3,330,910

)

1980

 

30 Years

 

Paradise Pointe

 

Dania, FL

 

320

 

 

1,913,414

 

17,417,956

 

 

3,422,034

 

1,913,414

 

20,839,990

 

22,753,404

 

(7,724,137

)

1987-90

 

30 Years

 

Parc Royale

 

Houston, TX

 

171

 

 

2,223,000

 

11,936,833

 

 

1,381,767

 

2,223,000

 

13,318,599

 

15,541,599

 

(3,048,204

)

1994

 

30 Years

 

Park Meadow

 

Gilbert, AZ

 

224

 

 

835,217

 

15,120,769

 

 

1,046,479

 

835,217

 

16,167,248

 

17,002,465

 

(4,211,667

)

1986

 

30 Years

 

Park Place (MN)

 

Plymouth, MN

 

250

 

 

1,219,900

 

10,964,119

 

 

1,618,488

 

1,219,900

 

12,582,607

 

13,802,507

 

(4,113,558

)

1986

 

30 Years

 

Park Place (TX)

 

Houston, TX

 

229

 

 

1,603,000

 

12,054,926

 

 

704,991

 

1,603,000

 

12,759,917

 

14,362,917

 

(3,263,810

)

1996

 

30 Years

 

Park Place II

 

Plymouth, MN

 

250

 

 

1,216,100

 

10,951,698

 

 

1,427,768

 

1,216,100

 

12,379,465

 

13,595,565

 

(3,938,123

)

1986

 

30 Years

 

Park Place West (CT)

 

West Hartford, CT

 

63

 

 

466,243

 

3,116,742

 

 

166,607

 

466,243

 

3,283,350

 

3,749,593

 

(538,740

)

1961

 

30 Years

 

Park West (CA)

 

Los Angeles, CA

 

444

 

 

3,033,500

 

27,302,383

 

 

2,843,743

 

3,033,500

 

30,146,126

 

33,179,626

 

(10,352,251

)

1987/90

 

30 Years

 

Park West (TX)

 

Austin, TX

 

196

 

 

648,705

 

4,738,542

 

 

1,283,557

 

648,705

 

6,022,099

 

6,670,804

 

(2,641,943

)

1985

 

30 Years

 

Parkfield

 

Denver, CO

 

476

 

 

8,330,000

 

28,667,618

 

 

468,924

 

8,330,000

 

29,136,542

 

37,466,542

 

(4,316,037

)

2000

 

30 Years

 

Parkside

 

Union City, CA

 

208

 

 

6,246,700

 

11,827,453

 

 

2,673,000

 

6,246,700

 

14,500,453

 

20,747,153

 

(3,910,813

)

1979

 

30 Years

 

Parkview Terrace

 

Redlands, CA

 

558

 

 

4,969,200

 

35,653,777

 

 

3,230,594

 

4,969,200

 

38,884,371

 

43,853,571

 

(9,727,223

)

1986

 

30 Years

 

Parkville (Col)

 

Columbus, OH

 

100

 

1,672,484

 

150,433

 

1,325,756

 

 

390,618

 

150,433

 

1,716,374

 

1,866,807

 

(458,705

)

1978

 

30 Years

 

Parkville (IN)

 

Gas City, IN

 

49

 

694,894

 

103,434

 

911,494

 

 

178,785

 

103,434

 

1,090,279

 

1,193,713

 

(264,564

)

1982

 

30 Years

 

Parkville (Par)

 

Englewood, OH

 

48

 

 

127,863

 

1,126,638

 

 

169,572

 

127,863

 

1,296,209

 

1,424,072

 

(281,425

)

1982

 

30 Years

 

Parkway North (REIT)

 

Ft. Meyers, FL

 

56

 

1,051,070

 

145,350

 

1,308,115

 

 

280,069

 

145,350

 

1,588,184

 

1,733,534

 

(253,581

)

1984

 

30 Years

 

Parkwood (CT)

 

East Haven, CT

 

102

 

 

531,365

 

3,552,064

 

 

219,030

 

531,365

 

3,771,094

 

4,302,459

 

(618,483

)

1975

 

30 Years

 

Parkwood Village I (REIT)

 

Douglasville, GA

 

69

 

1,127,305

 

172,878

 

1,555,984

 

 

34,541

 

172,878

 

1,590,525

 

1,763,402

 

(61,392

)

1985

 

30 Years

 

Parkwood Village II (REIT)

 

Douglasville, GA

 

66

 

1,256,771

 

207,576

 

1,868,265

 

 

49,192

 

207,576

 

1,917,457

 

2,125,033

 

(67,336

)

1987

 

30 Years

 

Phillips Park

 

Wellesley, MA

 

49

 

3,865,979

 

816,922

 

5,460,955

 

 

276,381

 

816,922

 

5,737,336

 

6,554,258

 

(848,626

)

1988

 

30 Years

 

Pier, The

 

Jersey City, NJ

 

297

 

 

4,000,159

 

94,650,860

 

 

105,867

 

4,000,159

 

94,756,727

 

98,756,886

 

(2,712,478

)

2003

 

30 Years

 

Pine Barrens

 

Jacksonville, FL

 

104

 

 

268,303

 

2,364,041

 

 

631,257

 

268,303

 

2,995,298

 

3,263,601

 

(654,746

)

1986

 

30 Years

 

Pine Harbour

 

Orlando, FL

 

366

 

 

1,664,300

 

14,970,915

 

 

2,267,381

 

1,664,300

 

17,238,296

 

18,902,596

 

(6,957,680

)

1991

 

30 Years

 

Pine Knoll

 

Jonesboro, GA

 

46

 

1,121,098

 

138,052

 

1,216,391

 

 

173,686

 

138,052

 

1,390,077

 

1,528,129

 

(290,447

)

1985

 

30 Years

 

Pine Meadows I (FL)

 

Ft. Meyers, FL

 

60

 

 

152,019

 

1,339,596

 

 

434,712

 

152,019

 

1,774,309

 

1,926,328

 

(458,287

)

1985

 

30 Years

 

Pine Terrace I

 

Callaway, FL

 

148

 

1,990,498

 

288,992

 

2,546,426

 

 

838,258

 

288,992

 

3,384,685

 

3,673,677

 

(829,488

)

1983

 

30 Years

 

Pine Tree Club

 

Wildwood, MO

 

150

 

 

1,125,000

 

7,017,082

 

 

809,505

 

1,125,000

 

7,826,587

 

8,951,587

 

(1,745,720

)

1986

 

30 Years

 

Pinegrove I (REIT)

 

Roseville, MI

 

50

 

1,048,446

 

145,660

 

1,311,019

 

 

43,992

 

145,660

 

1,355,011

 

1,500,671

 

(61,727

)

1983

 

30 Years

 

Pinegrove II (REIT)

 

Roseville, MI

 

33

 

 

99,074

 

891,743

 

 

14,584

 

99,074

 

906,327

 

1,005,401

 

(39,554

)

1984

 

30 Years

 

Pinellas Pines

 

Pinellas Park, FL

 

68

 

 

174,999

 

1,541,934

 

 

271,202

 

174,999

 

1,813,136

 

1,988,135

 

(399,301

)

1983

 

30 Years

 

Pines of Cloverlane

 

Ypsilanti, MI

 

582

 

 

1,907,800

 

16,767,519

 

 

6,152,504

 

1,907,800

 

22,920,024

 

24,827,824

 

(9,709,860

)

1975-79

 

30 Years

 

Plum Tree

 

Hales Corners, WI

 

332

 

(N

)

1,996,700

 

20,247,195

 

 

1,187,650

 

1,996,700

 

21,434,845

 

23,431,545

 

(5,530,474

)

1989

 

30 Years

 

Plumwood I

 

Columbus, OH

 

109

 

 

289,814

 

2,553,597

 

 

430,973

 

289,814

 

2,984,571

 

3,274,385

 

(660,531

)

1978

 

30 Years

 

Plumwood II

 

Columbus, OH

 

34

 

 

107,583

 

947,924

 

 

117,040

 

107,583

 

1,064,964

 

1,172,547

 

(217,716

)

1983

 

30 Years

 

Point (NC)

 

Charlotte, NC

 

340

 

(S

)

1,700,000

 

25,417,267

 

 

634,862

 

1,700,000

 

26,052,129

 

27,752,129

 

(5,809,724

)

1996

 

30 Years

 

Pointe at South Mountain

 

Phoenix, AZ

 

364

 

 

2,228,800

 

20,059,311

 

 

1,548,364

 

2,228,800

 

21,607,675

 

23,836,475

 

(6,336,652

)

1988

 

30 Years

 

Polos East

 

Orlando, FL

 

308

 

 

1,386,000

 

19,058,620

 

 

1,025,807

 

1,386,000

 

20,084,427

 

21,470,427

 

(4,669,386

)

1991

 

30 Years

 

Port Royale

 

Ft. Lauderdale, FL

 

252

 

 

1,754,200

 

15,789,873

 

 

2,379,538

 

1,754,200

 

18,169,411

 

19,923,611

 

(6,674,068

)

1988

 

30 Years

 

Port Royale II

 

Ft. Lauderdale, FL

 

161

 

 

1,022,200

 

9,203,166

 

 

1,502,671

 

1,022,200

 

10,705,837

 

11,728,037

 

(3,559,887

)

1988

 

30 Years

 

Port Royale III

 

Ft. Lauderdale, FL

 

324

 

 

7,454,900

 

14,725,802

 

 

2,496,741

 

7,454,900

 

17,222,543

 

24,677,443

 

(4,972,774

)

1988

 

30 Years

 

Port Royale IV

 

Ft. Lauderdale, FL

 

 

 

 

24,645

 

 

 

 

24,645

 

24,645

 

 

(F)

 

30 Years

 

Portland Center

 

Portland, OR (G)

 

525

 

 

6,032,900

 

43,554,399

 

 

4,807,084

 

6,032,900

 

48,361,482

 

54,394,382

 

(11,826,982

)

1965

 

30 Years

 

Portofino

 

Chino Hills, CA

 

176

 

 

3,572,400

 

14,660,994

 

 

958,006

 

3,572,400

 

15,618,999

 

19,191,399

 

(3,942,024

)

1989

 

30 Years

 

Portofino (Val)

 

Valencia, CA

 

216

 

14,127,942

 

8,640,000

 

21,487,126

 

 

509,337

 

8,640,000

 

21,996,463

 

30,636,463

 

(3,194,003

)

1989

 

30 Years

 

Portside Towers

 

Jersey City, NJ (G)

 

527

 

53,654,654

 

22,455,700

 

96,842,913

 

 

4,579,315

 

22,455,700

 

101,422,228

 

123,877,928

 

(23,158,728

)

1992/1997

 

30 Years

 

Prairie Creek I

 

Richardson, TX

 

464

 

(Q

)

4,067,292

 

38,986,022

 

 

1,065,640

 

4,067,292

 

40,051,662

 

44,118,954

 

(8,305,833

)

1998/99

 

30 Years

 

Preakness

 

Antioch, TN

 

260

 

 

1,561,900

 

7,668,521

 

 

1,878,288

 

1,561,900

 

9,546,808

 

11,108,708

 

(3,074,683

)

1986

 

30 Years

 

Preserve at Deer Creek

 

Deerfield Beach, FL

 

540

 

 

13,500,000

 

60,011,208

 

 

214,932

 

13,500,000

 

60,226,140

 

73,726,140

 

(2,388,140

)

1997

 

30 Years

 

Preston at Willowbend

 

Plano, TX

 

229

 

 

872,500

 

7,878,915

 

 

3,842,155

 

872,500

 

11,721,070

 

12,593,570

 

(4,761,628

)

1985

 

30 Years

 

 

S-8



 

ERP OPERATING LIMITED PARTNERSHIP

Schedule III - Real Estate and Accumulated Depreciation

December 31, 2004

 

Description

 

 

 

Initial Cost to
Company

 

Cost Capitalized
Subsequent to
Acquisition
(Improvements, net) (E)

 

Gross Amount Carried
at Close of
Period 12/31/04

 

 

 

 

 

 

 

Life Used to
Compute
Depreciation in
Latest Income
Statement (C)

 

Apartment Name

 

Location

 

Units (J)

 

Encumbrances

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures (A)

 

Total (B)

 

Accumulated
Depreciation

 

Date of
Construction

 

 

Preston Bend

 

Dallas, TX

 

255

 

(M

)

1,085,200

 

9,532,056

 

 

890,964

 

1,085,200

 

10,423,020

 

11,508,220

 

(3,168,810

)

1986

 

30 Years

 

Princeton Court

 

Evansville, IN

 

62

 

832,324

 

116,696

 

1,028,219

 

 

259,207

 

116,696

 

1,287,426

 

1,404,122

 

(302,131

)

1985

 

30 Years

 

Promenade (FL)

 

St. Petersburg, FL

 

334

 

 

2,124,193

 

25,804,037

 

 

2,598,382

 

2,124,193

 

28,402,419

 

30,526,612

 

(6,374,139

)

1994

 

30 Years

 

Promenade at Aventura

 

Aventura, FL

 

296

 

 

13,320,000

 

30,353,748

 

 

759,120

 

13,320,000

 

31,112,868

 

44,432,868

 

(4,416,132

)

1995

 

30 Years

 

Promenade at Peachtree

 

Chamblee, GA

 

406

 

 

10,150,000

 

31,219,739

 

 

118,870

 

10,150,000

 

31,338,610

 

41,488,610

 

(735,368

)

2001

 

30 Years

 

Promenade at Town Center I

 

Valencia, CA

 

294

 

 

14,700,000

 

35,390,279

 

 

305,092

 

14,700,000

 

35,695,370

 

50,395,370

 

(1,528,228

)

2001

 

30 Years

 

Promenade at Town Center II

 

Valencia, CA

 

270

 

36,480,700

 

13,500,000

 

34,405,636

 

 

218,260

 

13,500,000

 

34,623,896

 

48,123,896

 

(1,337,682

)

2001

 

30 Years

 

Promenade at Wyndham Lakes

 

Coral Springs, FL

 

332

 

 

6,640,000

 

26,743,760

 

 

791,411

 

6,640,000

 

27,535,171

 

34,175,171

 

(4,479,900

)

1998

 

30 Years

 

Promenade Terrace

 

Corona, CA

 

330

 

13,857,293

 

2,282,800

 

20,546,289

 

 

2,410,823

 

2,282,800

 

22,957,113

 

25,239,913

 

(6,985,404

)

1990

 

30 Years

 

Promontory Pointe
I & II

 

Phoenix, AZ

 

424

 

 

2,355,509

 

30,421,840

 

 

1,856,078

 

2,355,509

 

32,277,917

 

34,633,426

 

(8,396,729

)

1984/1996

 

30 Years

 

Prospect Towers

 

Hackensack, NJ

 

157

 

 

3,926,600

 

27,966,416

 

 

2,394,922

 

3,926,600

 

30,361,339

 

34,287,939

 

(7,558,563

)

1995

 

30 Years

 

Prospect Towers II

 

Hackensack, NJ

 

203

 

 

4,500,000

 

33,104,733

 

 

325,131

 

4,500,000

 

33,429,863

 

37,929,863

 

(3,041,709

)

2002

 

30 Years

 

Providence

 

Bothell, WA

 

200

 

 

3,573,621

 

19,059,505

 

 

72,051

 

3,573,621

 

19,131,557

 

22,705,178

 

(771,677

)

2000

 

30 Years

 

Providence at Kirby

 

Houston, TX

 

263

 

17,945,369

 

3,945,000

 

20,587,782

 

 

1,271,074

 

3,945,000

 

21,858,856

 

25,803,856

 

(1,916,148

)

1999

 

30 Years

 

Quail Call

 

Albany, GA

 

55

 

658,053

 

104,723

 

922,728

 

 

247,805

 

104,723

 

1,170,532

 

1,275,256

 

(276,965

)

1984

 

30 Years

 

Ramblewood I (Aug) (REIT)

 

Augusta, GA

 

84

 

1,338,474

 

172,475

 

1,552,271

 

 

47,908

 

172,475

 

1,600,179

 

1,772,654

 

(25,205

)

1985

 

30 Years

 

Ramblewood I (Val)

 

Valdosta, GA

 

52

 

 

132,084

 

1,163,801

 

 

230,610

 

132,084

 

1,394,412

 

1,526,495

 

(292,411

)

1983

 

30 Years

 

Ramblewood II (Aug)

 

Augusta, GA

 

102

 

 

169,269

 

1,490,783

 

 

358,423

 

169,269

 

1,849,206

 

2,018,475

 

(467,880

)

1986

 

30 Years

 

Ramblewood II (Val)

 

Valdosta, GA

 

28

 

 

61,672

 

543,399

 

 

29,870

 

61,672

 

573,269

 

634,941

 

(126,369

)

1983

 

30 Years

 

Ranch at Fossil Creek

 

Haltom City, TX

 

274

 

 

1,715,435

 

16,829,282

 

 

128,284

 

1,715,435

 

16,957,566

 

18,673,001

 

(841,197

)

2003

 

30 Years

 

Ranchside

 

New Port Richey, FL

 

76

 

 

144,692

 

1,274,898

 

 

330,093

 

144,692

 

1,604,991

 

1,749,683

 

(353,128

)

1985

 

30 Years

 

Ranchstone

 

Houston, TX

 

220

 

(S

)

770,000

 

15,371,431

 

 

503,303

 

770,000

 

15,874,734

 

16,644,734

 

(3,590,712

)

1996

 

30 Years

 

Ravens Crest

 

Plainsboro, NJ

 

704

 

(R

)

4,670,850

 

42,080,642

 

 

4,858,741

 

4,670,850

 

46,939,384

 

51,610,234

 

(18,200,484

)

1984

 

30 Years

 

Ravinia

 

Greenfield, WI

 

206

 

(N

)

1,240,100

 

12,055,713

 

 

731,216

 

1,240,100

 

12,786,929

 

14,027,029

 

(3,315,764

)

1991

 

30 Years

 

Red Deer I

 

Fairborn, OH

 

68

 

 

204,317

 

1,800,254

 

 

293,810

 

204,317

 

2,094,064

 

2,298,380

 

(437,221

)

1986

 

30 Years

 

Red Deer II

 

Fairborn, OH

 

63

 

 

193,852

 

1,708,044

 

 

170,208

 

193,852

 

1,878,252

 

2,072,104

 

(395,366

)

1987

 

30 Years

 

Redan Village I

 

Decatur, GA

 

78

 

 

274,294

 

2,416,963

 

 

341,091

 

274,294

 

2,758,054

 

3,032,349

 

(591,108

)

1984

 

30 Years

 

Redan Village II

 

Decatur, GA

 

76

 

 

240,605

 

2,119,855

 

 

145,866

 

240,605

 

2,265,721

 

2,506,327

 

(462,051

)

1986

 

30 Years

 

Redlands Lawn and Tennis

 

Redlands, CA

 

496

 

 

4,822,320

 

26,359,328

 

 

2,220,115

 

4,822,320

 

28,579,443

 

33,401,763

 

(7,573,689

)

1986

 

30 Years

 

Redwood Hollow (REIT)

 

Smyrna, TN

 

72

 

1,187,874

 

129,586

 

1,166,522

 

 

67,696

 

129,586

 

1,234,217

 

1,363,803

 

(70,637

)

1986

 

30 Years

 

Regency

 

Charlotte, NC

 

178

 

 

890,000

 

11,783,920

 

 

891,737

 

890,000

 

12,675,656

 

13,565,656

 

(2,951,836

)

1986

 

30 Years

 

Regency Palms

 

Huntington Beach, CA

 

310

 

 

1,857,400

 

16,713,254

 

 

2,710,700

 

1,857,400

 

19,423,953

 

21,281,353

 

(6,385,834

)

1969

 

30 Years

 

Remington Place

 

Phoenix, AZ

 

412

 

 

1,492,750

 

13,377,478

 

 

2,852,279

 

1,492,750

 

16,229,757

 

17,722,507

 

(5,679,494

)

1983

 

30 Years

 

Reserve at Ashley Lake

 

Boynton Beach, FL

 

440

 

24,150,000

 

3,520,400

 

23,332,494

 

 

1,738,849

 

3,520,400

 

25,071,342

 

28,591,742

 

(6,664,216

)

1990

 

30 Years

 

Reserve at Clarendon Centre, The

 

Arlington, VA (G)

 

252

 

 

10,500,000

 

52,957,381

 

 

198,456

 

10,500,000

 

53,155,837

 

63,655,837

 

(2,510,300

)

2003

 

30 Years

 

Reserve at Eisenhower, The

 

Alexandria, VA

 

226

 

 

6,500,000

 

34,585,060

 

 

76,969

 

6,500,000

 

34,662,028

 

41,162,028

 

(2,513,414

)

2002

 

30 Years

 

Reserve at Fairfax Corners

 

Fairfax, VA

 

652

 

(U

)

15,804,057

 

63,129,051

 

 

458,593

 

15,804,057

 

63,587,643

 

79,391,700

 

(5,344,613

)

2001

 

30 Years

 

Reserve at Marina
Bay I

 

Quincy, MA

 

136

 

 

3,618,844

 

24,123,769

 

 

43,756

 

3,618,844

 

24,167,525

 

27,786,369

 

(758,339

)

2002

 

30 Years

 

Reserve at Marina
Bay II

 

Quincy, MA

 

108

 

 

3,923,754

 

19,306,394

 

 

16,928

 

3,923,754

 

19,323,322

 

23,247,076

 

(569,298

)

2003

 

30 Years

 

Reserve at Potomac Yard

 

Alexandria, VA

 

588

 

 

11,918,917

 

69,485,747

 

 

374,099

 

11,918,917

 

69,859,847

 

81,778,763

 

(2,228,864

)

2002

 

30 Years

 

Reserve at Town Center

 

Loudon, VA

 

290

 

26,500,000

 

3,144,056

 

27,920,288

 

 

291,751

 

3,144,056

 

28,212,039

 

31,356,095

 

(954,272

)

20002

 

30 Years

 

Reserve at Town
Center (WA)

 

Mill Creek, WA

 

389

 

 

10,369,400

 

41,172,081

 

 

97,349

 

10,369,400

 

41,269,431

 

51,638,831

 

(1,033,039

)

2001

 

30 Years

 

Reserve at Tyson’s Corner

 

Vienna, VA

 

 

 

 

513,946

 

 

 

 

513,946

 

513,946

 

 

(F)

 

30 Years

 

Reserve Square

 

Cleveland, OH (G)

 

748

 

 

2,618,852

 

23,582,869

 

 

16,653,297

 

2,618,852

 

40,236,166

 

42,855,018

 

(20,110,589

)

1973

 

30 Years

 

Residences at Little River

 

Haverhill, MA

 

174

 

 

6,905,138

 

19,177,447

 

 

57,791

 

6,905,138

 

19,235,238

 

26,140,376

 

(832,987

)

2003

 

30 Years

 

Retreat, The

 

Phoenix, AZ

 

480

 

(S

)

3,475,114

 

27,265,252

 

 

734,003

 

3,475,114

 

27,999,255

 

31,474,369

 

(5,655,559

)

1999

 

30 Years

 

Ribbon Mill

 

Manchester, CT

 

104

 

4,304,635

 

787,929

 

5,267,144

 

 

285,163

 

787,929

 

5,552,307

 

6,340,236

 

(890,987

)

1908

 

30 Years

 

Richmond Townhomes

 

Houston, TX

 

188

 

 

940,000

 

13,906,905

 

 

647,139

 

940,000

 

14,554,044

 

15,494,044

 

(3,346,047

)

1995

 

30 Years

 

Ridgewood (Lou)

 

Louisville, KY

 

61

 

 

163,686

 

1,442,301

 

 

162,005

 

163,686

 

1,604,306

 

1,767,992

 

(326,488

)

1984

 

30 Years

 

Ridgewood (MI)

 

Westland, MI

 

56

 

1,122,876

 

176,969

 

1,559,588

 

 

295,340

 

176,969

 

1,854,928

 

2,031,897

 

(405,703

)

1983

 

30 Years

 

Ridgewood I (Bed)

 

Bedford, IN

 

48

 

792,694

 

107,120

 

943,843

 

 

194,393

 

107,120

 

1,138,236

 

1,245,356

 

(260,896

)

1984

 

30 Years

 

Ridgewood I (Elk)

 

Elkhart, IN

 

70

 

 

159,371

 

1,404,234

 

 

350,215

 

159,371

 

1,754,449

 

1,913,820

 

(402,448

)

1984

 

30 Years

 

Ridgewood I (GA)

 

Decatur, GA

 

63

 

 

230,574

 

2,031,610

 

 

370,821

 

230,574

 

2,402,430

 

2,633,004

 

(491,193

)

1984

 

30 Years

 

Ridgewood I (Lex)

 

Lexington, KY

 

62

 

 

203,720

 

1,794,792

 

 

202,147

 

203,720

 

1,996,939

 

2,200,659

 

(419,770

)

1984

 

30 Years

 

Ridgewood I (OH)

 

Columbus, OH

 

60

 

1,135,727

 

174,066

 

1,534,135

 

 

289,937

 

174,066

 

1,824,072

 

1,998,138

 

(393,255

)

1984

 

30 Years

 

Ridgewood II (Bed)

 

Bedford, IN

 

50

 

821,030

 

99,559

 

877,221

 

 

130,858

 

99,559

 

1,008,079

 

1,107,637

 

(225,649

)

1986

 

30 Years

 

Ridgewood II (Elk)

 

Elkhart, IN

 

99

 

 

215,335

 

1,897,333

 

 

345,757

 

215,335

 

2,243,090

 

2,458,425

 

(532,808

)

1986

 

30 Years

 

Ridgewood II (GA)

 

Decatur, GA

 

52

 

909,920

 

164,999

 

1,453,626

 

 

205,788

 

164,999

 

1,659,415

 

1,824,414

 

(329,833

)

1986

 

30 Years

 

Ridgewood II (OH)

 

Columbus, OH

 

58

 

1,097,870

 

162,914

 

1,435,648

 

 

212,620

 

162,914

 

1,648,268

 

1,811,182

 

(356,197

)

1985

 

30 Years

 

Ridgewood Village

 

San Diego, CA

 

192

 

 

5,761,500

 

14,032,511

 

 

265,199

 

5,761,500

 

14,297,709

 

20,059,209

 

(3,544,259

)

1997

 

30 Years

 

Ridgewood Village II

 

San Diego, CA

 

216

 

 

6,048,000

 

19,971,537

 

 

50,210

 

6,048,000

 

20,021,747

 

26,069,747

 

(2,928,817

)

1997

 

30 Years

 

Rincon

 

Houston, TX

 

288

 

 

4,401,900

 

16,734,746

 

 

1,014,040

 

4,401,900

 

17,748,785

 

22,150,685

 

(5,025,547

)

1996

 

30 Years

 

River Glen I

 

Reynoldsburg, OH

 

60

 

 

171,272

 

1,508,892

 

 

144,495

 

171,272

 

1,653,387

 

1,824,659

 

(348,018

)

1987

 

30 Years

 

River Glen II

 

Reynoldsburg, OH

 

53

 

1,096,621

 

158,684

 

1,398,175

 

 

218,027

 

158,684

 

1,616,202

 

1,774,886

 

(335,670

)

1987

 

30 Years

 

River Hill

 

Grand Prairie, TX

 

334

 

 

2,004,000

 

19,272,944

 

 

920,781

 

2,004,000

 

20,193,725

 

22,197,725

 

(4,700,454

)

1996

 

30 Years

 

River Oaks (CA)

 

Oceanside, CA

 

280

 

10,131,654

 

5,600,000

 

20,673,714

 

 

960,332

 

5,600,000

 

21,634,045

 

27,234,045

 

(3,457,684

)

1984

 

30 Years

 

River Park

 

Fort Worth, TX

 

280

 

 

2,245,400

 

8,811,727

 

 

2,564,494

 

2,245,400

 

11,376,220

 

13,621,620

 

(3,251,237

)

1984

 

30 Years

 

River Pointe at Den Rock Park

 

Lawrence, MA

 

174

 

18,100,000

 

4,615,702

 

18,440,147

 

 

241,056

 

4,615,702

 

18,681,203

 

23,296,905

 

(1,427,397

)

2000

 

30 Years

 

River Stone Ranch

 

Austin, TX

 

448

 

 

5,376,000

 

27,004,185

 

 

750,087

 

5,376,000

 

27,754,272

 

33,130,272

 

(1,342,879

)

1998

 

30 Years

 

Rivers Bend (CT)

 

Windsor, CT

 

373

 

(P

)

3,325,517

 

22,573,826

 

 

756,625

 

3,325,517

 

23,330,451

 

26,655,967

 

(3,624,154

)

1973

 

30 Years

 

Rivers Edge

 

Waterbury, CT

 

156

 

 

781,900

 

6,561,167

 

 

516,929

 

781,900

 

7,078,097

 

7,859,997

 

(1,766,206

)

1974

 

30 Years

 

Rivers End I

 

Jacksonville, FL

 

66

 

1,291,998

 

171,745

 

1,507,065

 

 

464,814

 

171,745

 

1,971,879

 

2,143,624

 

(427,137

)

1986

 

30 Years

 

Rivers End II

 

Jacksonville, FL

 

69

 

 

190,688

 

1,680,171

 

 

380,596

 

190,688

 

2,060,767

 

2,251,455

 

(441,437

)

1986

 

30 Years

 

Riverside Park

 

Tulsa, OK

 

288

 

 

1,441,400

 

12,371,637

 

 

821,818

 

1,441,400

 

13,193,455

 

14,634,855

 

(3,607,550

)

1994

 

30 Years

 

Riverview Condominiums

 

Norwalk, CT

 

92

 

5,957,202

 

2,300,000

 

7,406,730

 

 

1,248,485

 

2,300,000

 

8,655,215

 

10,955,215

 

(1,563,974

)

1991

 

30 Years

 

Roanoke

 

Rochester Hills, MI

 

88

 

40,500

 

369,911

 

3,259,270

 

 

326,572

 

369,911

 

3,585,842

 

3,955,753

 

(714,204

)

1985

 

30 Years

 

Rock Creek

 

Carrboro, NC

 

188

 

 

895,700

 

8,062,543

 

 

1,472,355

 

895,700

 

9,534,898

 

10,430,598

 

(2,904,686

)

1986

 

30 Years

 

Rockingham Glen

 

West Roxbury, MA

 

143

 

2,203,001

 

1,124,217

 

7,515,160

 

 

367,160

 

1,124,217

 

7,882,320

 

9,006,537

 

(1,277,826

)

1974

 

30 Years

 

Rolling Green (Amherst)

 

Amherst, MA

 

204

 

3,575,203

 

1,340,702

 

8,962,317

 

 

1,958,458

 

1,340,702

 

10,920,775

 

12,261,477

 

(1,792,577

)

1970

 

30 Years

 

 

S-9



 

ERP OPERATING LIMITED PARTNERSHIP

Schedule III - Real Estate and Accumulated Depreciation

December 31, 2004

 

Description

 

 

 

Initial Cost to
Company

 

Cost Capitalized
Subsequent to
Acquisition
(Improvements, net) (E)

 

Gross Amount Carried
at Close of
Period 12/31/04

 

 

 

 

 

 

 

Life Used to
Compute
Depreciation in
Latest Income
Statement (C)

 

Apartment Name

 

Location

 

Units (J)

 

Encumbrances

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures (A)

 

Total (B)

 

Accumulated
Depreciation

 

Date of
Construction

 

 

Rolling Green (Milford)

 

Milford, MA

 

304

 

7,144,117

 

2,012,350

 

13,452,150

 

 

1,480,825

 

2,012,350

 

14,932,975

 

16,945,325

 

(2,647,587

)

1970

 

30 Years

 

Rosecliff

 

Quincy, MA

 

156

 

 

5,460,000

 

15,721,570

 

 

129,854

 

5,460,000

 

15,851,424

 

21,311,424

 

(3,027,904

)

1990

 

30 Years

 

Rosecliff II

 

Quincy, MA

 

 

 

 

1,379

 

 

 

 

1,379

 

1,379

 

 

(F)

 

30 Years

 

Rosewood (KY)

 

Louisville, KY

 

77

 

 

253,453

 

2,233,196

 

 

277,373

 

253,453

 

2,510,569

 

2,764,022

 

(530,876

)

1984

 

30 Years

 

Rosewood (OH)

 

Columbus, OH

 

90

 

 

212,378

 

1,871,186

 

 

422,686

 

212,378

 

2,293,872

 

2,506,250

 

(502,796

)

1985

 

30 Years

 

Rosewood Commons I

 

Indianapolis, IN

 

96

 

1,712,753

 

228,644

 

2,014,652

 

 

301,649

 

228,644

 

2,316,301

 

2,544,946

 

(536,374

)

1986

 

30 Years

 

Rosewood Commons II

 

Indianapolis, IN

 

77

 

 

220,463

 

1,942,520

 

 

246,408

 

220,463

 

2,188,928

 

2,409,391

 

(485,177

)

1987

 

30 Years

 

Royal Oak

 

Eagan, MN

 

231

 

13,139,491

 

1,602,904

 

14,423,662

 

 

1,510,056

 

1,602,904

 

15,933,718

 

17,536,621

 

(4,227,396

)

1989

 

30 Years

 

Royal Oaks (FL)

 

Jacksonville, FL

 

284

 

 

1,988,000

 

13,645,117

 

 

955,505

 

1,988,000

 

14,600,623

 

16,588,623

 

(3,473,615

)

1991

 

30 Years

 

Royale

 

Cranston, RI

 

76

 

(P

)

512,785

 

3,427,866

 

 

372,436

 

512,785

 

3,800,301

 

4,313,087

 

(611,412

)

1976

 

30 Years

 

Sabal Palm at Boot Ranch

 

Palm Harbor, FL

 

432

 

 

3,888,000

 

28,923,692

 

 

1,542,166

 

3,888,000

 

30,465,858

 

34,353,858

 

(6,970,371

)

1996

 

30 Years

 

Sabal Palm at Carrollwood Place

 

Tampa, FL

 

432

 

 

3,888,000

 

26,911,542

 

 

1,004,942

 

3,888,000

 

27,916,484

 

31,804,484

 

(6,343,494

)

1995

 

30 Years

 

Sabal Palm at Lake Buena Vista

 

Orlando, FL

 

400

 

21,170,000

 

2,800,000

 

23,687,893

 

 

1,166,490

 

2,800,000

 

24,854,383

 

27,654,383

 

(5,845,594

)

1988

 

30 Years

 

Sabal Palm at Metrowest

 

Orlando, FL

 

411

 

 

4,110,000

 

38,394,865

 

 

1,726,456

 

4,110,000

 

40,121,321

 

44,231,321

 

(9,006,054

)

1998

 

30 Years

 

Sabal Palm at Metrowest II

 

Orlando, FL

 

456

 

 

4,560,000

 

33,907,283

 

 

830,402

 

4,560,000

 

34,737,685

 

39,297,685

 

(7,769,914

)

1997

 

30 Years

 

Sabal Pointe

 

Coral Springs, FL

 

275

 

 

1,951,600

 

17,570,508

 

 

2,148,804

 

1,951,600

 

19,719,312

 

21,670,912

 

(6,284,413

)

1995

 

30 Years

 

Saddle Club

 

Denver, CO

 

 

 

 

753,755

 

 

 

 

753,755

 

753,755

 

 

(F)

 

30 Years

 

Saddle Ridge

 

Ashburn, VA

 

216

 

 

1,364,800

 

12,283,616

 

 

1,258,862

 

1,364,800

 

13,542,478

 

14,907,278

 

(4,513,980

)

1989

 

30 Years

 

Sailboat Bay

 

Raleigh, NC

 

192

 

 

960,000

 

8,797,580

 

 

787,261

 

960,000

 

9,584,841

 

10,544,841

 

(2,291,347

)

1986

 

30 Years

 

Sandalwood

 

Toledo, OH

 

50

 

1,027,632

 

151,926

 

1,338,636

 

 

198,882

 

151,926

 

1,537,517

 

1,689,443

 

(308,075

)

1984

 

30 Years

 

Sandpiper II

 

Fort Pierce, FL

 

66

 

 

155,496

 

1,369,987

 

 

349,606

 

155,496

 

1,719,593

 

1,875,088

 

(438,958

)

1982

 

30 Years

 

Sanford Court

 

Sanford, FL

 

106

 

1,617,450

 

238,814

 

2,104,212

 

 

497,180

 

238,814

 

2,601,392

 

2,840,206

 

(605,767

)

1976

 

30 Years

 

Savannah at Park Place

 

Atlanta, GA

 

416

 

 

7,696,095

 

34,474,837

 

 

317,791

 

7,696,095

 

34,792,628

 

42,488,723

 

(1,147,300

)

2001

 

30 Years

 

Savannah Lakes

 

Boynton Beach, FL

 

466

 

 

7,000,000

 

30,422,607

 

 

944,529

 

7,000,000

 

31,367,135

 

38,367,135

 

(3,259,424

)

1991

 

30 Years

 

Savannah Midtown

 

Atlanta, GA

 

322

 

 

7,209,873

 

29,712,389

 

 

409,868

 

7,209,873

 

30,122,257

 

37,332,130

 

(1,020,854

)

2000

 

30 Years

 

Savoy I

 

Aurora, CO

 

444

 

 

6,109,460

 

38,765,670

 

 

117,013

 

6,109,460

 

38,882,684

 

44,992,144

 

(1,528,681

)

2001

 

30 Years

 

Scarborough Square

 

Rockville, MD

 

121

 

4,811,343

 

1,815,000

 

7,608,126

 

 

1,104,289

 

1,815,000

 

8,712,414

 

10,527,414

 

(2,135,143

)

1967

 

30 Years

 

Schooner Bay I

 

Foster City, CA

 

168

 

27,000,000

 

5,345,000

 

16,947,265

 

 

860,591

 

5,345,000

 

17,807,856

 

23,152,856

 

(2,334,379

)

1985

 

30 Years

 

Schooner Bay II

 

Foster City, CA

 

144

 

23,760,000

 

4,550,000

 

14,975,001

 

 

760,060

 

4,550,000

 

15,735,061

 

20,285,061

 

(2,035,972

)

1985

 

30 Years

 

Scottsdale Meadows

 

Scottsdale, AZ

 

168

 

 

1,512,000

 

11,407,699

 

 

785,946

 

1,512,000

 

12,193,645

 

13,705,645

 

(3,228,748

)

1984

 

30 Years

 

Security Manor

 

Westfield, MA

 

63

 

(P

)

355,456

 

2,376,152

 

 

53,336

 

355,456

 

2,429,488

 

2,784,944

 

(394,435

)

1971

 

30 Years

 

Sedona Springs

 

Austin, TX

 

396

 

(S

)

2,574,000

 

23,477,043

 

 

1,470,834

 

2,574,000

 

24,947,876

 

27,521,876

 

(5,879,393

)

1995

 

30 Years

 

Seeley Lake

 

Lakewood, WA

 

522

 

 

2,760,400

 

24,845,286

 

 

2,136,658

 

2,760,400

 

26,981,945

 

29,742,345

 

(7,571,569

)

1990

 

30 Years

 

Seventh & James

 

Seattle, WA

 

96

 

 

663,800

 

5,974,803

 

 

1,907,503

 

663,800

 

7,882,306

 

8,546,106

 

(2,454,420

)

1992

 

30 Years

 

Shadetree

 

West Palm Beach, FL

 

76

 

 

532,000

 

1,420,721

 

 

337,343

 

532,000

 

1,758,064

 

2,290,064

 

(322,125

)

1982

 

30 Years

 

Shadow Bay I

 

Jacksonville, FL

 

53

 

 

123,319

 

1,086,720

 

 

163,688

 

123,319

 

1,250,408

 

1,373,727

 

(293,618

)

1984

 

30 Years

 

Shadow Bay II

 

Jacksonville, FL

 

59

 

923,423

 

139,709

 

1,231,134

 

 

149,200

 

139,709

 

1,380,334

 

1,520,042

 

(321,749

)

1985

 

30 Years

 

Shadow Brook

 

Scottsdale, AZ

 

224

 

 

3,065,496

 

18,367,686

 

 

1,264,011

 

3,065,496

 

19,631,697

 

22,697,193

 

(5,153,874

)

1984

 

30 Years

 

Shadow Creek

 

Winter Springs, FL

 

280

 

 

6,000,000

 

21,719,768

 

 

61,442

 

6,000,000

 

21,781,211

 

27,781,211

 

(663,359

)

2000

 

30 Years

 

Shadow Lake

 

Doraville, GA

 

228

 

 

1,140,000

 

13,117,277

 

 

657,150

 

1,140,000

 

13,774,427

 

14,914,427

 

(3,180,214

)

1989

 

30 Years

 

Shadow Ridge

 

Tallahassee, FL

 

62

 

 

150,327

 

1,324,061

 

 

261,755

 

150,327

 

1,585,817

 

1,736,143

 

(356,374

)

1983

 

30 Years

 

Shadow Trace

 

Stone Mountain, GA

 

81

 

 

244,320

 

2,152,729

 

 

318,293

 

244,320

 

2,471,021

 

2,715,342

 

(530,446

)

1984

 

30 Years

 

Shadowood I

 

Sarasota, FL

 

69

 

600,000

 

157,661

 

1,389,061

 

 

372,053

 

157,661

 

1,761,114

 

1,918,775

 

(392,701

)

1982

 

30 Years

 

Shadowood II

 

Sarasota, FL

 

70

 

1,120,960

 

152,031

 

1,339,469

 

 

245,867

 

152,031

 

1,585,336

 

1,737,367

 

(342,470

)

1983

 

30 Years

 

Sheffield Court

 

Arlington, VA

 

597

 

 

3,349,350

 

31,337,168

 

 

2,970,541

 

3,349,350

 

34,307,709

 

37,657,059

 

(12,256,204

)

1986

 

30 Years

 

Sherbrook (IN)

 

Indianapolis, IN

 

76

 

1,536,953

 

171,920

 

1,514,707

 

 

193,269

 

171,920

 

1,707,976

 

1,879,897

 

(397,596

)

1986

 

30 Years

 

Sherbrook (OH)

 

Columbus, OH

 

60

 

1,041,084

 

163,493

 

1,440,036

 

 

330,562

 

163,493

 

1,770,598

 

1,934,092

 

(396,239

)

1985

 

30 Years

 

Sherbrook (PA)

 

Wexford, PA

 

74

 

 

279,665

 

2,464,404

 

 

306,980

 

279,665

 

2,771,384

 

3,051,049

 

(581,057

)

1986

 

30 Years

 

Siena Terrace

 

Lake Forest, CA

 

356

 

17,316,163

 

8,900,000

 

24,083,024

 

 

1,342,385

 

8,900,000

 

25,425,408

 

34,325,408

 

(5,457,037

)

1988

 

30 Years

 

Silver Forest

 

Ocala, FL

 

51

 

798,844

 

126,536

 

1,114,917

 

 

184,435

 

126,536

 

1,299,352

 

1,425,888

 

(262,537

)

1985

 

30 Years

 

Silver Springs (FL)

 

Jacksonville, FL

 

432

 

 

1,831,100

 

16,474,735

 

 

4,045,225

 

1,831,100

 

20,519,960

 

22,351,060

 

(6,300,272

)

1985

 

30 Years

 

Sky Ridge

 

Woodstock, GA

 

120

 

 

437,373

 

3,853,792

 

 

418,050

 

437,373

 

4,271,842

 

4,709,216

 

(874,855

)

1987

 

30 Years

 

Skycrest

 

Valencia, CA

 

264

 

17,582,696

 

10,560,000

 

25,574,457

 

 

695,678

 

10,560,000

 

26,270,136

 

36,830,136

 

(3,785,956

)

1999

 

30 Years

 

Skylark

 

Union City, CA

 

174

 

 

1,781,600

 

16,731,916

 

 

826,785

 

1,781,600

 

17,558,701

 

19,340,301

 

(4,086,181

)

1986

 

30 Years

 

Skyview

 

Rancho Santa Margarita, CA

 

260

 

 

3,380,000

 

21,953,151

 

 

360,073

 

3,380,000

 

22,313,224

 

25,693,224

 

(4,471,167

)

1999

 

30 Years

 

Slate Run (Hop)

 

Hopkinsville, KY

 

57

 

 

91,304

 

804,535

 

 

199,255

 

91,304

 

1,003,790

 

1,095,094

 

(243,726

)

1984

 

30 Years

 

Slate Run (Ind)

 

Indianapolis, IN

 

90

 

1,890,871

 

295,593

 

2,604,497

 

 

467,165

 

295,593

 

3,071,661

 

3,367,254

 

(672,611

)

1984

 

30 Years

 

Slate Run (Leb)

 

Lebanon, IN

 

61

 

1,147,354

 

154,061

 

1,357,445

 

 

294,121

 

154,061

 

1,651,566

 

1,805,627

 

(367,467

)

1984

 

30 Years

 

Slate Run (Mia)

 

Miamisburg, OH

 

48

 

778,713

 

136,065

 

1,198,879

 

 

198,060

 

136,065

 

1,396,940

 

1,533,004

 

(295,504

)

1985

 

30 Years

 

Slate Run I (Lou)

 

Louisville, KY

 

65

 

 

179,766

 

1,583,931

 

 

259,677

 

179,766

 

1,843,608

 

2,023,373

 

(411,898

)

1984

 

30 Years

 

Slate Run II (Lou)

 

Louisville, KY

 

63

 

1,087,384

 

167,723

 

1,477,722

 

 

168,959

 

167,723

 

1,646,682

 

1,814,404

 

(345,039

)

1985

 

30 Years

 

Sommerset Place

 

Raleigh, NC

 

144

 

 

360,000

 

7,800,206

 

 

809,925

 

360,000

 

8,610,131

 

8,970,131

 

(2,043,656

)

1983

 

30 Years

 

Sonata at Cherry Creek

 

Denver, CO

 

183

 

 

5,490,000

 

18,130,479

 

 

333,314

 

5,490,000

 

18,463,793

 

23,953,793

 

(2,725,093

)

1999

 

30 Years

 

Sonoran

 

Phoenix, AZ

 

429

 

 

2,361,922

 

31,841,724

 

 

1,301,191

 

2,361,922

 

33,142,915

 

35,504,837

 

(8,470,598

)

1995

 

30 Years

 

Sonterra at Foothill Ranch

 

Foothill Ranch, CA

 

300

 

(R

)

7,503,400

 

24,048,507

 

 

825,168

 

7,503,400

 

24,873,674

 

32,377,074

 

(5,929,481

)

1997

 

30 Years

 

South Pointe

 

St. Louis, MO

 

192

 

7,110,250

 

961,100

 

8,651,150

 

 

1,699,666

 

961,100

 

10,350,816

 

11,311,916

 

(3,160,472

)

1986

 

30 Years

 

South Shore

 

Stockton, CA

 

129

 

6,833,000

 

840,000

 

6,826,626

 

 

556,688

 

840,000

 

7,383,314

 

8,223,314

 

(1,141,569

)

1979

 

30 Years

 

South Winds

 

Fall River, MA

 

404

 

7,123,908

 

2,481,821

 

16,780,359

 

 

1,503,262

 

2,481,821

 

18,283,621

 

20,765,442

 

(3,165,723

)

1971

 

30 Years

 

Southwood

 

Palo Alto, CA

 

99

 

 

6,936,600

 

14,324,069

 

 

1,227,705

 

6,936,600

 

15,551,774

 

22,488,374

 

(3,896,233

)

1985

 

30 Years

 

Spicewood

 

Indianapolis, IN

 

50

 

984,566

 

128,355

 

1,131,044

 

 

131,274

 

128,355

 

1,262,318

 

1,390,673

 

(273,232

)

1986

 

30 Years

 

Spinnaker Cove

 

Hermitage, TN

 

278

 

(M

)

1,461,731

 

12,770,421

 

 

2,375,670

 

1,461,731

 

15,146,091

 

16,607,822

 

(4,414,455

)

1986

 

30 Years

 

Spring Gate

 

Springfield, FL

 

66

 

 

132,951

 

1,171,447

 

 

294,672

 

132,951

 

1,466,118

 

1,599,070

 

(394,965

)

1983

 

30 Years

 

Spring Hill Commons

 

Acton, MA

 

105

 

 

1,107,436

 

7,402,980

 

 

362,840

 

1,107,436

 

7,765,820

 

8,873,256

 

(1,221,705

)

1973

 

30 Years

 

Spring Lake Manor

 

Birmingham, AL (T)

 

240

 

3,696,601

 

199,992

 

4,512,048

 

 

1,175,058

 

199,992

 

5,687,106

 

5,887,098

 

(1,441,914

)

1972

 

30 Years

 

Springbrook

 

Anderson, SC

 

92

 

1,575,700

 

150,209

 

1,488,611

 

 

308,655

 

150,209

 

1,797,266

 

1,947,475

 

(404,389

)

1986

 

30 Years

 

Springs Colony

 

Altamonte Springs, FL

 

188

 

(M

)

630,411

 

5,852,157

 

 

1,378,442

 

630,411

 

7,230,598

 

7,861,009

 

(3,122,431

)

1986

 

30 Years

 

Springtree (REIT)

 

W. Palm Beach, FL

 

72

 

1,121,825

 

183,100

 

1,648,301

 

 

179,965

 

183,100

 

1,828,266

 

2,011,366

 

(288,426

)

1982

 

30 Years

 

Springwood (Col)

 

Columbus, OH

 

64

 

994,795

 

189,948

 

1,672,889

 

 

293,483

 

189,948

 

1,966,372

 

2,156,320

 

(430,356

)

1983

 

30 Years

 

St. Andrews at Winston Park

 

Coconut Creek, FL

 

284

 

 

5,680,000

 

19,812,090

 

 

695,344

 

5,680,000

 

20,507,434

 

26,187,434

 

(2,226,160

)

1997

 

30 Years

 

 

S-10



 

ERP OPERATING LIMITED PARTNERSHIP

Schedule III - Real Estate and Accumulated Depreciation

December 31, 2004

 

Description

 

 

 

Initial Cost to
Company

 

Cost Capitalized
Subsequent to
Acquisition
(Improvements, net) (E)

 

Gross Amount Carried
at Close of
Period 12/31/04

 

 

 

 

 

 

 

Life Used to
Compute
Depreciation in
Latest Income
Statement (C)

 

Apartment Name

 

Location

 

Units (J)

 

Encumbrances

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures (A)

 

Total (B)

 

Accumulated
Depreciation

 

Date of
Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Steeplechase

 

Charlotte, NC

 

247

 

 

1,111,500

 

10,180,750

 

 

698,720

 

1,111,500

 

10,879,470

 

11,990,970

 

(2,720,640

)

1986

 

30 Years

 

Sterling Heights Condominium, LLC

 

Bellevue, WA

 

76

 

 

1,928,071

 

8,363,070

 

 

386,210

 

1,928,071

 

8,749,280

 

10,677,351

 

 

1988

 

30 Years

 

Sterling Point

 

Littleton, CO

 

143

 

 

935,500

 

8,419,200

 

 

835,218

 

935,500

 

9,254,418

 

10,189,918

 

(2,697,580

)

1979

 

30 Years

 

Stewart Way I

 

Hinesville, GA

 

132

 

2,019,543

 

290,773

 

2,562,373

 

 

511,434

 

290,773

 

3,073,807

 

3,364,580

 

(664,709

)

1986

 

30 Years

 

Stewart Way III

 

Hinesville, GA

 

59

 

 

100,500

 

1,530,464

 

 

64,663

 

100,500

 

1,595,127

 

1,695,627

 

(61,285

)

1986

 

30 Years

 

Stillwater

 

Savannah, GA

 

53

 

 

151,198

 

1,332,417

 

 

209,501

 

151,198

 

1,541,918

 

1,693,116

 

(311,929

)

1983

 

30 Years

 

Stone Crossing

 

Montgomery, AL (T)

 

152

 

1,866,400

 

103,186

 

2,716,316

 

 

462,829

 

103,186

 

3,179,145

 

3,282,331

 

(812,006

)

1973

 

30 Years

 

Stone Oak

 

Houston, TX

 

318

 

 

2,544,000

 

17,513,496

 

 

274,935

 

2,544,000

 

17,788,431

 

20,332,431

 

(1,692,755

)

1998

 

30 Years

 

Stonehenge (Day)

 

Dayton, OH

 

69

 

 

202,294

 

1,782,140

 

 

236,420

 

202,294

 

2,018,560

 

2,220,854

 

(444,399

)

1985

 

30 Years

 

Stonehenge (Ind)

 

Indianapolis, IN

 

60

 

1,117,603

 

146,810

 

1,293,559

 

 

309,073

 

146,810

 

1,602,632

 

1,749,442

 

(395,830

)

1984

 

30 Years

 

Stonehenge (KY)

 

Glasgow, KY

 

54

 

739,227

 

111,632

 

983,596

 

 

185,422

 

111,632

 

1,169,018

 

1,280,650

 

(255,824

)

1983

 

30 Years

 

Stonehenge (Mas)

 

Massillon, OH

 

60

 

 

145,386

 

1,281,012

 

 

280,585

 

145,386

 

1,561,596

 

1,706,983

 

(355,926

)

1984

 

30 Years

 

Stonehenge I (Ric)

 

Richmond, IN

 

59

 

1,046,236

 

156,343

 

1,377,552

 

 

246,405

 

156,343

 

1,623,957

 

1,780,300

 

(389,281

)

1984

 

30 Years

 

Stoneleigh at Deerfield

 

Alpharetta, GA

 

370

 

 

4,810,000

 

29,997,224

 

 

 

4,810,000

 

29,997,224

 

34,807,224

 

(137,684

)

2003

 

30 Years

 

Stoney Creek

 

Lakewood, WA

 

231

 

 

1,215,200

 

10,938,134

 

 

1,078,955

 

1,215,200

 

12,017,089

 

13,232,289

 

(3,432,437

)

1990

 

30 Years

 

Stratford Square

 

Winter Park, FL (T)

 

204

 

4,814,693

 

391,300

 

3,176,441

 

 

503,490

 

391,300

 

3,679,932

 

4,071,232

 

(926,019

)

1972

 

30 Years

 

Sturbridge Meadows

 

Sturbridge, MA

 

104

 

2,133,569

 

702,447

 

4,695,714

 

 

187,448

 

702,447

 

4,883,162

 

5,585,609

 

(790,018

)

1985

 

30 Years

 

Suffolk Grove I

 

Grove City, OH

 

71

 

 

214,107

 

1,886,415

 

 

419,166

 

214,107

 

2,305,581

 

2,519,687

 

(482,138

)

1985

 

30 Years

 

Suffolk Grove II

 

Grove City, OH

 

49

 

 

167,683

 

1,477,569

 

 

234,035

 

167,683

 

1,711,603

 

1,879,286

 

(364,925

)

1987

 

30 Years

 

Sugartree I

 

New Smyrna Beach, FL

 

61

 

890,931

 

155,018

 

1,453,696

 

 

337,939

 

155,018

 

1,791,635

 

1,946,653

 

(382,325

)

1984

 

30 Years

 

Sugartree II (REIT)

 

New Smyrna Beach, FL

 

60

 

1,444,026

 

178,416

 

1,599,476

 

 

23,597

 

178,416

 

1,623,072

 

1,801,488

 

(76,817

)

1985

 

30 Years

 

Summer Chase

 

Denver, CO

 

384

 

(Q

)

1,709,200

 

15,375,008

 

 

2,492,547

 

1,709,200

 

17,867,555

 

19,576,755

 

(6,233,072

)

1983

 

30 Years

 

Summer Creek

 

Plymouth, MN

 

72

 

 

579,600

 

3,815,800

 

 

497,446

 

579,600

 

4,313,246

 

4,892,846

 

(1,162,281

)

1985

 

30 Years

 

Summer Ridge

 

Riverside, CA

 

136

 

 

602,400

 

5,422,807

 

 

1,657,058

 

602,400

 

7,079,866

 

7,682,266

 

(2,036,002

)

1985

 

30 Years

 

Summerhill Glen

 

Maynard, MA

 

120

 

1,795,295.76

 

415,812

 

3,000,816

 

 

408,057

 

415,812

 

3,408,873

 

3,824,685

 

(610,591

)

1980

 

30 Years

 

Summerset Village

 

Chatsworth, CA

 

280

 

(Q

)

2,630,700

 

23,670,889

 

 

1,173,531

 

2,630,700

 

24,844,420

 

27,475,120

 

(7,312,315

)

1985

 

30 Years

 

Summerset Village II

 

Chatsworth, CA

 

 

 

260,646

 

31,577

 

 

 

260,646

 

31,577

 

292,223

 

 

(F)

 

30 Years

 

Summerwood

 

Hayward, CA

 

162

 

 

4,866,600

 

6,942,743

 

 

783,586

 

4,866,600

 

7,726,329

 

12,592,929

 

(2,014,676

)

1982

 

30 Years

 

Summit & Birch Hill

 

Farmington, CT

 

186

 

(P

)

1,757,438

 

11,748,112

 

 

866,789

 

1,757,438

 

12,614,902

 

14,372,340

 

(1,921,101

)

1967

 

30 Years

 

Summit at Lake Union

 

Seattle, WA

 

150

 

 

1,424,700

 

12,852,461

 

 

1,179,999

 

1,424,700

 

14,032,460

 

15,457,160

 

(3,995,450

)

1995 - 1997

 

30 Years

 

Summit Center (FL)

 

W. Palm Beach, FL

 

87

 

2,119,290

 

670,000

 

1,733,312

 

 

390,548

 

670,000

 

2,123,860

 

2,793,860

 

(445,064

)

1987

 

30 Years

 

Sunforest

 

Davie, FL

 

494

 

 

10,000,000

 

32,124,850

 

 

593,340

 

10,000,000

 

32,718,189

 

42,718,189

 

(1,667,412

)

1989

 

30 Years

 

Sunnyside

 

Tifton, GA

 

72

 

1,223,638

 

166,887

 

1,470,612

 

 

240,478

 

166,887

 

1,711,091

 

1,877,978

 

(389,425

)

1984

 

30 Years

 

Sunset Way I

 

Miami, FL

 

100

 

 

258,568

 

2,278,539

 

 

386,942

 

258,568

 

2,665,481

 

2,924,049

 

(592,006

)

1987

 

30 Years

 

Sunset Way II

 

Miami, FL

 

100

 

 

274,903

 

2,422,546

 

 

292,675

 

274,903

 

2,715,221

 

2,990,125

 

(582,451

)

1988

 

30 Years

 

Suntree

 

West Palm Beach, FL

 

67

 

 

469,000

 

1,479,589

 

 

93,509

 

469,000

 

1,573,097

 

2,042,097

 

(245,608

)

1982

 

30 Years

 

Surrey Downs

 

Bellevue, WA

 

122

 

 

3,057,100

 

7,848,618

 

 

677,314

 

3,057,100

 

8,525,933

 

11,583,033

 

(2,097,612

)

1986

 

30 Years

 

Sutton Place

 

Dallas, TX

 

456

 

 

1,306,335

 

12,227,725

 

 

4,461,706

 

1,306,335

 

16,689,431

 

17,995,766

 

(7,559,599

)

1985

 

30 Years

 

Sutton Place (FL)

 

Lakeland, FL

 

55

 

777,468

 

120,887

 

1,065,150

 

 

315,354

 

120,887

 

1,380,504

 

1,501,392

 

(323,419

)

1984

 

30 Years

 

Sycamore Creek

 

Scottsdale, AZ

 

350

 

 

3,152,000

 

19,083,727

 

 

1,501,078

 

3,152,000

 

20,584,805

 

23,736,805

 

(5,655,884

)

1984

 

30 Years

 

Tabor Ridge

 

Berea, OH

 

97

 

 

235,940

 

2,079,290

 

 

431,301

 

235,940

 

2,510,591

 

2,746,531

 

(571,404

)

1986

 

30 Years

 

Talleyrand

 

Tarrytown, NY (M)

 

300

 

35,000,000

 

12,000,000

 

49,838,160

 

 

545,143

 

12,000,000

 

50,383,303

 

62,383,303

 

(5,827,652

)

1997-98

 

30 Years

 

Tamarlane

 

Portland, ME

 

115

 

 

690,900

 

5,153,633

 

 

432,109

 

690,900

 

5,585,741

 

6,276,641

 

(1,615,692

)

1986

 

30 Years

 

Tanasbourne Terrace

 

Hillsboro, OR

 

373

 

(Q

)

1,876,700

 

16,891,205

 

 

2,548,661

 

1,876,700

 

19,439,865

 

21,316,565

 

(7,672,952

)

1986-89

 

30 Years

 

Tanglewood (RI)

 

West Warwick, RI

 

176

 

6,305,957

 

1,141,415

 

7,630,129

 

 

292,946

 

1,141,415

 

7,923,074

 

9,064,490

 

(1,264,960

)

1973

 

30 Years

 

Tanglewood (VA)

 

Manassas, VA

 

432

 

25,110,000

 

2,108,295

 

24,619,176

 

 

3,179,192

 

2,108,295

 

27,798,367

 

29,906,662

 

(8,705,290

)

1987

 

30 Years

 

Terrace Trace

 

Tampa, FL

 

87

 

1,503,913

 

193,916

 

1,708,615

 

 

307,346

 

193,916

 

2,015,961

 

2,209,877

 

(452,793

)

1985

 

30 Years

 

Thymewood II

 

Miami, FL

 

70

 

 

219,661

 

1,936,463

 

 

189,773

 

219,661

 

2,126,236

 

2,345,897

 

(434,930

)

1986

 

30 Years

 

Tierra Antigua

 

Albuquerque, NM

 

148

 

6,249,298

 

1,825,000

 

7,792,856

 

 

370,058

 

1,825,000

 

8,162,915

 

9,987,915

 

(1,254,029

)

1985

 

30 Years

 

Timber Hollow

 

Chapel Hill, NC

 

198

 

 

800,000

 

11,219,537

 

 

1,106,214

 

800,000

 

12,325,751

 

13,125,751

 

(2,898,612

)

1986

 

30 Years

 

Timbercreek

 

Toledo, OH

 

77

 

1,416,857

 

203,420

 

1,792,350

 

 

310,580

 

203,420

 

2,102,930

 

2,306,350

 

(446,629

)

1987

 

30 Years

 

Timberwalk

 

Jacksonville, FL

 

284

 

 

1,988,000

 

13,204,219

 

 

1,045,529

 

1,988,000

 

14,249,748

 

16,237,748

 

(3,450,151

)

1987

 

30 Years

 

Timberwood (GA)

 

Perry, GA

 

60

 

 

144,299

 

1,271,305

 

 

202,840

 

144,299

 

1,474,145

 

1,618,444

 

(298,729

)

1985

 

30 Years

 

Toscana

 

Irvine, CA

 

563

 

 

39,410,000

 

50,806,072

 

 

2,411,627

 

39,410,000

 

53,217,699

 

92,627,699

 

(8,060,818

)

1991/1993

 

30 Years

 

Town Center (TX)

 

Kingwood, TX

 

258

 

 

1,291,300

 

11,530,216

 

 

1,330,686

 

1,291,300

 

12,860,903

 

14,152,203

 

(3,633,662

)

1994

 

30 Years

 

Town Center II (TX)

 

Kingwood, TX

 

260

 

 

1,375,000

 

14,169,656

 

 

92,683

 

1,375,000

 

14,262,339

 

15,637,339

 

(2,661,766

)

1994

 

30 Years

 

Trails (CO), The

 

Aurora, CO

 

351

 

(Q

)

1,217,900

 

8,877,205

 

 

3,148,290

 

1,217,900

 

12,025,495

 

13,243,395

 

(5,539,307

)

1986

 

30 Years

 

Trails at Briar Forest

 

Houston, TX

 

476

 

12,481,969

 

2,380,000

 

24,911,561

 

 

1,546,286

 

2,380,000

 

26,457,847

 

28,837,847

 

(6,218,539

)

1990

 

30 Years

 

Trails at Dominion Park

 

Houston, TX

 

843

 

 

2,531,800

 

35,699,589

 

 

3,981,877

 

2,531,800

 

39,681,466

 

42,213,266

 

(11,864,870

)

1992

 

30 Years

 

Trailway Pond I

 

Burnsville, MN

 

75

 

4,909,210

 

479,284

 

4,312,144

 

 

643,234

 

479,284

 

4,955,378

 

5,434,662

 

(1,341,515

)

1988

 

30 Years

 

Trailway Pond II

 

Burnsville, MN

 

165

 

11,354,755

 

1,107,288

 

9,961,409

 

 

1,183,825

 

1,107,288

 

11,145,233

 

12,252,521

 

(2,881,743

)

1988

 

30 Years

 

Turf Club

 

Littleton, CO

 

324

 

(S

)

2,107,300

 

15,478,040

 

 

2,112,217

 

2,107,300

 

17,590,257

 

19,697,557

 

(4,847,167

)

1986

 

30 Years

 

Turkscap I

 

Brandon, FL

 

49

 

 

125,766

 

1,108,139

 

 

429,342

 

125,766

 

1,537,482

 

1,663,248

 

(395,058

)

1977

 

30 Years

 

Turkscap III

 

Brandon, FL

 

50

 

716,655

 

135,850

 

1,196,987

 

 

328,064

 

135,850

 

1,525,051

 

1,660,901

 

(329,895

)

1982

 

30 Years

 

Tuscany Villas, LLC

 

Los Angeles, CA

 

180

 

 

1,431,048

 

14,928,007

 

 

495,570

 

1,431,048

 

15,423,577

 

16,854,625

 

(3,857,158

)

1995

 

30 Years

 

Tyrone Gardens

 

Randolph, MA

 

165

 

 

4,953,000

 

5,799,572

 

 

915,287

 

4,953,000

 

6,714,859

 

11,667,859

 

(1,787,956

)

1961/1965

 

30 Years

 

Union Station

 

Los Angeles, CA

 

 

6,663,301

 

8,500,000

 

13,280,094

 

 

 

8,500,000

 

13,280,094

 

21,780,094

 

 

(F)

 

30 Years

 

University Square I

 

Tampa, FL

 

81

 

 

197,457

 

1,739,807

 

 

303,136

 

197,457

 

2,042,944

 

2,240,400

 

(442,158

)

1979

 

30 Years

 

Valencia Plantation

 

Orlando, FL

 

194

 

 

873,000

 

12,819,377

 

 

507,665

 

873,000

 

13,327,043

 

14,200,043

 

(2,979,093

)

1990

 

30 Years

 

Valley Creek I

 

Woodbury, MN

 

225

 

12,815,000

 

1,626,715

 

14,634,831

 

 

2,043,340

 

1,626,715

 

16,678,171

 

18,304,887

 

(4,466,314

)

1989

 

30 Years

 

Valley Creek II

 

Woodbury, MN

 

177

 

10,100,000

 

1,232,659

 

11,097,830

 

 

1,177,876

 

1,232,659

 

12,275,706

 

13,508,366

 

(3,166,646

)

1990

 

30 Years

 

Valleybrook

 

Newnan, GA

 

71

 

1,379,854

 

254,490

 

2,242,463

 

 

309,335

 

254,490

 

2,551,798

 

2,806,288

 

(496,689

)

1986

 

30 Years

 

Valleyfield (KY)

 

Lexington, KY

 

83

 

1,711,251

 

252,329

 

2,223,757

 

 

346,771

 

252,329

 

2,570,528

 

2,822,856

 

(562,103

)

1985

 

30 Years

 

Valleyfield (PA)

 

Bridgeville, PA

 

77

 

 

274,317

 

2,417,029

 

 

355,949

 

274,317

 

2,772,978

 

3,047,295

 

(588,533

)

1985

 

30 Years

 

Valleyfield I

 

Decatur, GA

 

66

 

1,479,328

 

252,413

 

2,224,134

 

 

256,536

 

252,413

 

2,480,670

 

2,733,083

 

(529,218

)

1984

 

30 Years

 

Valleyfield II

 

Decatur, GA

 

66

 

 

258,320

 

2,276,084

 

 

163,332

 

258,320

 

2,439,416

 

2,697,737

 

(492,502

)

1985

 

30 Years

 

Van Deene Manor

 

West Springfield, MA

 

111

 

(P

)

744,491

 

4,976,771

 

 

299,545

 

744,491

 

5,276,315

 

6,020,806

 

(823,599

)

1970

 

30 Years

 

Venetian Condominium Phase II, LLC

 

Phoenix, AZ

 

160

 

 

1,047,212

 

9,436,170

 

 

1,261,715

 

1,047,212

 

10,697,885

 

11,745,097

 

(2,992,991

)

1983

 

30 Years

 

Venetian Condominium, LLC

 

Phoenix, AZ

 

11

 

 

71,939

 

648,237

 

 

304,817

 

71,939

 

953,055

 

1,024,994

 

(183,429

)

1983

 

30 Years

 

 

S-11



 

ERP OPERATING LIMITED PARTNERSHIP

Schedule III - Real Estate and Accumulated Depreciation

December 31, 2004

 

Description

 

 

 

Initial Cost to
Company

 

Cost Capitalized
Subsequent to
Acquisition
(Improvements, net) (E)

 

Gross Amount Carried
at Close of
Period 12/31/04

 

 

 

 

 

 

 

Life Used to
Compute
Depreciation in
Latest Income
Statement (C)

 

Apartment Name

 

Location

 

Units (J)

 

Encumbrances

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures (A)

 

Total (B)

 

Accumulated
Depreciation

 

Date of
Construction

 

 

Verona Condominium, LLC

 

Scottsdale, AZ

 

108

 

 

1,301,497

 

7,522,719

 

 

1,513,642

 

1,301,497

 

9,036,361

 

10,337,858

 

(1,897,725

)

1994

 

30 Years

 

Versailles

 

Woodland Hills, CA

 

253

 

 

12,650,000

 

33,656,521

 

 

860,376

 

12,650,000

 

34,516,897

 

47,166,897

 

(1,560,730

)

1991

 

30 Years

 

Via Ventura

 

Scottsdale, AZ

 

328

 

 

1,486,600

 

13,382,006

 

 

6,510,868

 

1,486,600

 

19,892,874

 

21,379,474

 

(9,453,807

)

1980

 

30 Years

 

Villa Encanto

 

Phoenix, AZ

 

383

 

(S

)

2,884,447

 

22,197,363

 

 

2,090,906

 

2,884,447

 

24,288,269

 

27,172,716

 

(6,810,494

)

1983

 

30 Years

 

Villa Solana

 

Laguna Hills, CA

 

272

 

 

1,665,100

 

14,985,678

 

 

3,256,161

 

1,665,100

 

18,241,838

 

19,906,938

 

(7,289,293

)

1984

 

30 Years

 

Village at Bear Creek

 

Lakewood, CO

 

472

 

(R

)

4,519,700

 

40,676,390

 

 

1,481,137

 

4,519,700

 

42,157,527

 

46,677,227

 

(11,347,171

)

1987

 

30 Years

 

Village at Lakewood

 

Phoenix, AZ

 

240

 

(O

)

3,166,411

 

13,859,090

 

 

1,215,500

 

3,166,411

 

15,074,590

 

18,241,001

 

(4,135,239

)

1988

 

30 Years

 

Village Oaks

 

Austin, TX

 

280

 

 

1,186,000

 

10,663,736

 

 

1,372,381

 

1,186,000

 

12,036,117

 

13,222,117

 

(3,907,815

)

1984

 

30 Years

 

Village of Newport

 

Kent, WA

 

100

 

 

416,300

 

3,756,582

 

 

512,035

 

416,300

 

4,268,618

 

4,684,918

 

(1,723,977

)

1987

 

30 Years

 

Villas at Josey Ranch

 

Carrollton, TX

 

198

 

6,312,554

 

1,587,700

 

7,254,727

 

 

1,450,139

 

1,587,700

 

8,704,866

 

10,292,566

 

(2,218,515

)

1986

 

30 Years

 

Vintage

 

Ontario, CA

 

 

 

7,059,230

 

3,274,995

 

 

 

7,059,230

 

3,274,995

 

10,334,225

 

 

(F)

 

30 Years

 

Vista Del Lago

 

Mission Viejo, CA

 

608

 

 

4,525,800

 

40,736,293

 

 

5,942,086

 

4,525,800

 

46,678,379

 

51,204,179

 

(17,950,833

)

1986-88

 

30 Years

 

Vista Del Lago (TX)

 

Dallas, TX

 

296

 

 

3,552,000

 

20,066,912

 

 

564,041

 

3,552,000

 

20,630,953

 

24,182,953

 

(2,801,110

)

1992

 

30 Years

 

Vista Grove

 

Mesa, AZ

 

224

 

 

1,341,796

 

12,157,045

 

 

623,388

 

1,341,796

 

12,780,434

 

14,122,230

 

(3,155,650

)

1997 - 1998

 

30 Years

 

Warwick Station

 

Westminster, CO

 

332

 

8,355,000

 

2,282,000

 

21,113,974

 

 

1,051,234

 

2,282,000

 

22,165,209

 

24,447,209

 

(5,962,103

)

1986

 

30 Years

 

Water Terrace

 

Marina Del Rey, CA

 

450

 

 

63,207,814

 

164,804,953

 

 

175,898

 

63,207,814

 

164,980,852

 

228,188,666

 

(5,235,538

)

2003

 

30 Years

 

Waterbury (GA)

 

Athens, GA

 

53

 

 

147,450

 

1,299,195

 

 

78,711

 

147,450

 

1,377,906

 

1,525,356

 

(282,354

)

1985

 

30 Years

 

Waterbury (IN)

 

Greenwood, IN

 

44

 

768,352

 

105,245

 

927,324

 

 

123,476

 

105,245

 

1,050,801

 

1,156,046

 

(233,827

)

1984

 

30 Years

 

Waterbury (MI)

 

Westland, MI

 

101

 

 

331,739

 

2,922,589

 

 

434,288

 

331,739

 

3,356,876

 

3,688,615

 

(710,942

)

1985

 

30 Years

 

Waterbury (OH)

 

Cincinnati, OH

 

70

 

 

193,167

 

1,701,834

 

 

311,022

 

193,167

 

2,012,856

 

2,206,023

 

(464,444

)

1985

 

30 Years

 

Waterfield Square I

 

Stockton, CA

 

170

 

6,923,000

 

950,000

 

6,627,805

 

 

1,129,880

 

950,000

 

7,757,684

 

8,707,684

 

(1,215,015

)

1984

 

30 Years

 

Waterfield Square II

 

Stockton, CA

 

158

 

6,595,000

 

845,000

 

6,147,280

 

 

873,520

 

845,000

 

7,020,801

 

7,865,801

 

(1,108,953

)

1984

 

30 Years

 

Waterford (Jax)

 

Jacksonville, FL

 

432

 

 

3,024,000

 

23,662,293

 

 

1,594,230

 

3,024,000

 

25,256,523

 

28,280,523

 

(6,122,910

)

1988

 

30 Years

 

Waterford (Jax) II

 

Jacksonville, FL

 

 

 

566,923

 

62,373

 

 

 

566,923

 

62,373

 

629,296

 

 

(F)

 

30 Years

 

Waterford at Deerwood

 

Jacksonville, FL

 

248

 

10,290,623

 

1,696,000

 

10,659,702

 

 

1,707,551

 

1,696,000

 

12,367,253

 

14,063,253

 

(3,066,038

)

1985

 

30 Years

 

Waterford at Orange Park

 

Orange Park, FL

 

280

 

9,540,000

 

1,960,000

 

12,098,784

 

 

1,844,952

 

1,960,000

 

13,943,736

 

15,903,736

 

(3,820,997

)

1986

 

30 Years

 

Waterford at the Lakes

 

Kent, WA

 

344

 

(U

)

3,100,200

 

16,140,924

 

 

1,352,381

 

3,100,200

 

17,493,305

 

20,593,505

 

(5,239,745

)

1990

 

30 Years

 

Waterford Village (Palm Beach)

 

Delray Beach, FL

 

236

 

 

1,888,000

 

15,358,635

 

 

2,100,469

 

1,888,000

 

17,459,104

 

19,347,104

 

(4,653,998

)

1989

 

30 Years

 

Watermarke

 

Irvine, CA

 

490

 

84,279,474

 

19,283,234

 

98,197,941

 

 

1,949

 

19,283,234

 

98,199,890

 

117,483,124

 

 

2004

 

30 Years

 

Webster Green

 

Needham, MA

 

77

 

6,029,612

 

1,418,893

 

9,485,006

 

 

262,757

 

1,418,893

 

9,747,763

 

11,166,656

 

(1,464,694

)

1985

 

30 Years

 

Welleby Lake Club

 

Sunrise, FL

 

304

 

 

3,648,000

 

17,620,879

 

 

1,083,776

 

3,648,000

 

18,704,656

 

22,352,656

 

(4,373,892

)

1991

 

30 Years

 

Wellington Hill

 

Manchester, NH

 

390

 

(M

)

1,890,200

 

17,120,662

 

 

3,781,412

 

1,890,200

 

20,902,074

 

22,792,274

 

(8,398,986

)

1987

 

30 Years

 

Wellsford Oaks

 

Tulsa, OK

 

300

 

 

1,310,500

 

11,794,290

 

 

996,034

 

1,310,500

 

12,790,324

 

14,100,824

 

(3,709,767

)

1991

 

30 Years

 

Wentworth

 

Roseville, MI

 

75

 

 

217,502

 

1,916,232

 

 

329,122

 

217,502

 

2,245,353

 

2,462,856

 

(490,008

)

1985

 

30 Years

 

West Of Eastland

 

Columbus, OH

 

124

 

1,870,795

 

234,544

 

2,066,675

 

 

430,909

 

234,544

 

2,497,584

 

2,732,128

 

(583,432

)

1977

 

30 Years

 

Westbrooke Village

 

Manchester, MO

 

252

 

 

1,890,000

 

10,606,343

 

 

1,293,112

 

1,890,000

 

11,899,454

 

13,789,454

 

(2,640,147

)

1984

 

30 Years

 

Westbrooke Village II

 

Manchester, MO

 

 

 

420,000

 

 

 

 

420,000

 

 

420,000

 

 

(F)

 

30 Years

 

Westfield Village

 

Centerville, VA

 

228

 

 

7,000,000

 

23,245,834

 

 

94,805

 

7,000,000

 

23,340,639

 

30,340,639

 

(338,393

)

1988

 

30 Years

 

Westgate

 

Pasadena, CA

 

 

21,372,556

 

46,168,848

 

2,874,125

 

 

 

46,168,848

 

2,874,125

 

49,042,973

 

 

(F)

 

30 Years

 

Westridge

 

Tacoma, WA

 

714

 

 

3,501,900

 

31,506,082

 

 

2,916,311

 

3,501,900

 

34,422,394

 

37,924,294

 

(10,092,237

)

1987/1991

 

30 Years

 

Westside Villas I

 

Los Angeles, CA

 

21

 

 

1,785,000

 

3,233,254

 

 

261,994

 

1,785,000

 

3,495,248

 

5,280,248

 

(545,501

)

1999

 

30 Years

 

Westside Villas II

 

Los Angeles, CA

 

23

 

 

1,955,000

 

3,541,435

 

 

11,214

 

1,955,000

 

3,552,649

 

5,507,649

 

(531,845

)

1999

 

30 Years

 

Westside Villas III

 

Los Angeles, CA

 

36

 

 

3,060,000

 

5,538,871

 

 

28,120

 

3,060,000

 

5,566,991

 

8,626,991

 

(838,273

)

1999

 

30 Years

 

Westside Villas IV

 

Los Angeles, CA

 

36

 

 

3,060,000

 

5,539,390

 

 

23,784

 

3,060,000

 

5,563,175

 

8,623,175

 

(829,700

)

1999

 

30 Years

 

Westside Villas V

 

Los Angeles, CA

 

60

 

 

5,100,000

 

9,224,485

 

 

39,009

 

5,100,000

 

9,263,494

 

14,363,494

 

(1,383,856

)

1999

 

30 Years

 

Westside Villas VI

 

Los Angeles, CA

 

18

 

 

1,530,000

 

3,024,001

 

 

79,714

 

1,530,000

 

3,103,715

 

4,633,715

 

(449,993

)

1989

 

30 Years

 

Westside Villas VII

 

Los Angeles, CA

 

53

 

 

4,505,000

 

10,758,900

 

 

36,373

 

4,505,000

 

10,795,273

 

15,300,273

 

(984,501

)

2001

 

30 Years

 

Westway

 

Brunswick, GA

 

70

 

 

168,323

 

1,483,106

 

 

379,127

 

168,323

 

1,862,233

 

2,030,556

 

(404,086

)

1984

 

30 Years

 

Westwood Glen

 

Westwood, MA

 

156

 

1,230,385

 

1,616,505

 

10,806,004

 

 

277,864

 

1,616,505

 

11,083,868

 

12,700,372

 

(1,705,235

)

1972

 

30 Years

 

Westwood Pines

 

Tamarac, FL

 

208

 

 

1,528,600

 

13,739,616

 

 

1,137,305

 

1,528,600

 

14,876,921

 

16,405,521

 

(4,006,465

)

1991

 

30 Years

 

Westwynd Apts

 

West Hartford, CT

 

46

 

 

308,543

 

2,062,548

 

 

193,591

 

308,543

 

2,256,138

 

2,564,681

 

(375,647

)

1969

 

30 Years

 

Whisper Creek

 

Denver, CO

 

272

 

 

5,310,000

 

22,997,972

 

 

5,509

 

5,310,000

 

23,003,481

 

28,313,481

 

(178,754

)

2002

 

30 Years

 

Whispering Oaks

 

Walnut Creek, CA

 

316

 

 

2,170,800

 

19,539,586

 

 

2,485,240

 

2,170,800

 

22,024,826

 

24,195,626

 

(7,008,176

)

1974

 

30 Years

 

Whispering Pines

 

Fr. Pierce, FL

 

64

 

 

384,000

 

621,367

 

 

246,359

 

384,000

 

867,726

 

1,251,726

 

(209,879

)

1986

 

30 Years

 

Whispering Pines II

 

Fr. Pierce, FL

 

44

 

 

105,172

 

926,476

 

 

182,873

 

105,172

 

1,109,349

 

1,214,520

 

(246,751

)

1986

 

30 Years

 

Whisperwood

 

Cordele, GA

 

50

 

 

84,240

 

742,374

 

 

224,275

 

84,240

 

966,649

 

1,050,889

 

(234,883

)

1985

 

30 Years

 

White Bear Woods

 

White Bear Lake, MN

 

225

 

14,172,876

 

1,624,741

 

14,618,490

 

 

1,629,783

 

1,624,741

 

16,248,273

 

17,873,013

 

(4,214,473

)

1989

 

30 Years

 

Wilcrest Woods

 

Savannah, GA

 

68

 

1,238,956

 

187,306

 

1,650,373

 

 

247,499

 

187,306

 

1,897,872

 

2,085,178

 

(391,930

)

1986

 

30 Years

 

Wilkins Glen

 

Medfield, MA

 

102

 

1,602,924

 

538,483

 

3,629,943

 

 

372,779

 

538,483

 

4,002,722

 

4,541,205

 

(688,709

)

1975

 

30 Years

 

Willow Brook (CA)

 

Pleasant Hill, CA

 

228

 

29,000,000

 

5,055,000

 

19,797,344

 

 

590,007

 

5,055,000

 

20,387,351

 

25,442,351

 

(2,776,411

)

1985

 

30 Years

 

Willow Creek

 

Fresno, CA

 

116

 

5,112,000

 

275,000

 

5,270,767

 

 

494,009

 

275,000

 

5,764,776

 

6,039,776

 

(888,452

)

1984

 

30 Years

 

Willow Creek I (GA)

 

Griffin, GA

 

53

 

 

145,769

 

1,298,973

 

 

273,348

 

145,769

 

1,572,322

 

1,718,090

 

(302,602

)

1985

 

30 Years

 

Willow Lakes

 

Spartanburg, SC

 

95

 

1,922,871

 

200,990

 

1,770,937

 

 

258,215

 

200,990

 

2,029,152

 

2,230,142

 

(444,564

)

1986

 

30 Years

 

Willow Run (GA)

 

Stone Mountain, GA

 

73

 

1,611,355

 

197,965

 

1,744,287

 

 

319,574

 

197,965

 

2,063,861

 

2,261,826

 

(464,366

)

1983

 

30 Years

 

Willow Run (IN)

 

New Albany, IN

 

64

 

1,054,106

 

183,873

 

1,620,119

 

 

179,497

 

183,873

 

1,799,616

 

1,983,489

 

(392,364

)

1984

 

30 Years

 

Willow Run (KY)

 

Madisonville, KY

 

72

 

1,050,359

 

141,016

 

1,242,352

 

 

241,821

 

141,016

 

1,484,172

 

1,625,188

 

(324,146

)

1984

 

30 Years

 

Willow Trail

 

Norcross, GA

 

224

 

 

1,120,000

 

11,412,982

 

 

776,798

 

1,120,000

 

12,189,780

 

13,309,780

 

(2,880,398

)

1985

 

30 Years

 

Willowood East II

 

Indianapolis, IN

 

60

 

 

104,918

 

924,590

 

 

197,856

 

104,918

 

1,122,445

 

1,227,363

 

(285,281

)

1985

 

30 Years

 

Willowood I (Gro)

 

Grove City, OH

 

46

 

882,762

 

126,045

 

1,110,558

 

 

239,948

 

126,045

 

1,350,506

 

1,476,551

 

(291,455

)

1984

 

30 Years

 

Willowood I (IN)

 

Columbus, IN

 

51

 

1,072,450

 

163,896

 

1,444,104

 

 

156,205

 

163,896

 

1,600,309

 

1,764,205

 

(335,584

)

1983

 

30 Years

 

Willowood I (KY)

 

Frankfort, KY

 

57

 

944,597

 

138,822

 

1,223,176

 

 

249,300

 

138,822

 

1,472,476

 

1,611,299

 

(315,236

)

1984

 

30 Years

 

Willowood I (Tro) (REIT)

 

Trotwood, OH

 

60

 

805,606

 

84,566

 

755,859

 

 

22,958

 

84,566

 

778,817

 

863,383

 

(41,741

)

1985

 

30 Years

 

Willowood I (Woo)

 

Wooster, OH

 

51

 

 

117,254

 

1,033,137

 

 

193,690

 

117,254

 

1,226,827

 

1,344,081

 

(260,765

)

1984

 

30 Years

 

Willowood II (Gro)

 

Grove City, OH

 

26

 

514,563

 

70,924

 

624,814

 

 

122,629

 

70,924

 

747,444

 

818,367

 

(165,515

)

1985

 

30 Years

 

Willowood II (IN)

 

Columbus, IN

 

58

 

1,080,479

 

161,306

 

1,421,284

 

 

150,077

 

161,306

 

1,571,361

 

1,732,668

 

(335,740

)

1986

 

30 Years

 

Willowood II (KY)

 

Frankfort, KY

 

53

 

 

120,375

 

1,060,639

 

 

139,638

 

120,375

 

1,200,277

 

1,320,653

 

(252,309

)

1985

 

30 Years

 

Willowood II (Tro)

 

Trotwood, OH

 

65

 

 

142,623

 

1,256,667

 

 

184,930

 

142,623

 

1,441,597

 

1,584,221

 

(316,459

)

1987

 

30 Years

 

Willowood II (Woo)

 

Wooster, OH

 

53

 

809,548

 

103,199

 

909,398

 

 

218,760

 

103,199

 

1,128,158

 

1,231,357

 

(259,895

)

1986

 

30 Years

 

Willows I (OH), The

 

Columbus, OH

 

50

 

 

76,283

 

672,340

 

 

176,413

 

76,283

 

848,753

 

925,036

 

(194,487

)

1987

 

30 Years

 

 

S-12



 

ERP OPERATING LIMITED PARTNERSHIP

Schedule III - Real Estate and Accumulated Depreciation

December 31, 2004

 

Description

 

 

 

Initial Cost to
Company

 

Cost Capitalized
Subsequent to
Acquisition
(Improvements, net) (E)

 

Gross Amount Carried
at Close of
Period 12/31/04

 

 

 

 

 

 

 

Life Used to
Compute
Depreciation in
Latest Income
Statement (C)

 

Apartment Name

 

Location

 

Units (J)

 

Encumbrances

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures

 

Land

 

Building &
Fixtures (A)

 

Total (B)

 

Accumulated
Depreciation

 

Date of
Construction

 

 

Willows II (OH), The

 

Columbus, OH

 

41

 

 

96,679

 

851,845

 

 

121,476

 

96,679

 

973,321

 

1,070,000

 

(209,652

)

1981

 

30 Years

 

Willows III (OH), The

 

Columbus, OH

 

43

 

839,800

 

129,221

 

1,137,783

 

 

163,894

 

129,221

 

1,301,677

 

1,430,899

 

(274,708

)

1987

 

30 Years

 

Wimberly

 

Dallas, TX

 

372

 

 

2,232,000

 

27,685,923

 

 

999,023

 

2,232,000

 

28,684,946

 

30,916,946

 

(6,456,451

)

1996

 

30 Years

 

Wimbledon Oaks

 

Arlington, TX

 

248

 

6,946,816

 

1,491,700

 

8,843,716

 

 

1,113,301

 

1,491,700

 

9,957,017

 

11,448,717

 

(2,623,126

)

1985

 

30 Years

 

Winchester Park

 

Riverside, RI

 

416

 

 

2,822,618

 

18,868,626

 

 

2,045,354

 

2,822,618

 

20,913,980

 

23,736,599

 

(3,737,756

)

1972

 

30 Years

 

Winchester Wood

 

Riverside, RI

 

62

 

2,100,842

 

683,215

 

4,567,154

 

 

155,033

 

683,215

 

4,722,187

 

5,405,403

 

(718,119

)

1989

 

30 Years

 

Windemere

 

Mesa, AZ

 

224

 

 

940,450

 

8,659,280

 

 

1,612,387

 

940,450

 

10,271,667

 

11,212,117

 

(3,256,731

)

1986

 

30 Years

 

Windmont

 

Atlanta, GA

 

178

 

 

3,204,000

 

7,128,448

 

 

538,649

 

3,204,000

 

7,667,097

 

10,871,097

 

(1,497,777

)

1988

 

30 Years

 

Windridge (CA)

 

Laguna Niguel, CA

 

344

 

(I

)

2,662,900

 

23,985,497

 

 

2,441,510

 

2,662,900

 

26,427,007

 

29,089,907

 

(9,705,615

)

1989

 

30 Years

 

Windsor at Fair Lakes

 

Fairfax, VA

 

250

 

 

10,000,000

 

28,587,109

 

 

111,646

 

10,000,000

 

28,698,755

 

38,698,755

 

(409,217

)

1988

 

30 Years

 

Windwood I (FL)

 

Palm Bay, FL

 

64

 

 

113,913

 

1,003,498

 

 

243,657

 

113,913

 

1,247,155

 

1,361,068

 

(314,435

)

1988

 

30 Years

 

Windwood II (FL)

 

Palm Bay, FL

 

64

 

190,000

 

118,915

 

1,047,598

 

 

329,282

 

118,915

 

1,376,881

 

1,495,796

 

(355,743

)

1987

 

30 Years

 

Wingwood (Orl)

 

Orlando, FL

 

86

 

1,355,993

 

236,884

 

2,086,402

 

 

1,024,156

 

236,884

 

3,110,558

 

3,347,442

 

(721,426

)

1980

 

30 Years

 

Winter Woods I (FL)

 

Winter Garden, FL

 

57

 

 

144,921

 

1,276,965

 

 

431,417

 

144,921

 

1,708,382

 

1,853,304

 

(385,927

)

1985

 

30 Years

 

Winter Woods II (FL) (REIT)

 

Winter Garden, FL

 

44

 

785,888

 

95,404

 

858,637

 

 

122,045

 

95,404

 

980,682

 

1,076,086

 

(69,566

)

1986

 

30 Years

 

Winterwood

 

Charlotte, NC

 

384

 

 

1,722,000

 

15,501,142

 

 

3,165,741

 

1,722,000

 

18,666,882

 

20,388,882

 

(7,859,879

)

1986

 

30 Years

 

Winthrop Court (KY)

 

Frankfort, KY

 

77

 

1,367,193

 

184,709

 

1,627,191

 

 

287,071

 

184,709

 

1,914,261

 

2,098,971

 

(421,968

)

1985

 

30 Years

 

Winthrop Court II (OH)

 

Columbus, OH

 

38

 

722,000

 

102,381

 

896,576

 

 

180,774

 

102,381

 

1,077,350

 

1,179,731

 

(225,559

)

1986

 

30 Years

 

Wood Creek (CA)

 

Pleasant Hill, CA

 

256

 

 

9,729,900

 

23,009,768

 

 

1,339,346

 

9,729,900

 

24,349,115

 

34,079,015

 

(6,643,373

)

1987

 

30 Years

 

Woodbine (Cuy)

 

Cuyahoga Falls, OH

 

55

 

 

185,868

 

1,637,701

 

 

172,540

 

185,868

 

1,810,240

 

1,996,108

 

(360,274

)

1982

 

30 Years

 

Woodbridge

 

Cary, GA

 

128

 

4,345,133

 

737,400

 

6,636,870

 

 

687,123

 

737,400

 

7,323,993

 

8,061,393

 

(2,452,538

)

1993-95

 

30 Years

 

Woodbridge (CT)

 

Newington, CT

 

73

 

(P

)

498,377

 

3,331,548

 

 

178,190

 

498,377

 

3,509,738

 

4,008,114

 

(557,686

)

1968

 

30 Years

 

Woodbridge II

 

Cary, GA

 

216

 

 

1,244,600

 

11,243,364

 

 

813,985

 

1,244,600

 

12,057,349

 

13,301,949

 

(3,824,157

)

1993-95

 

30 Years

 

Woodcliff I

 

Lilburn, GA

 

71

 

 

276,659

 

2,437,667

 

 

312,468

 

276,659

 

2,750,135

 

3,026,794

 

(585,599

)

1984

 

30 Years

 

Woodcliff II

 

Lilburn, GA

 

72

 

1,567,439

 

266,449

 

2,347,769

 

 

181,406

 

266,449

 

2,529,176

 

2,795,625

 

(512,045

)

1986

 

30 Years

 

Woodcreek

 

Beaverton, OR

 

440

 

 

1,755,800

 

15,816,455

 

 

3,196,899

 

1,755,800

 

19,013,354

 

20,769,154

 

(7,936,119

)

1982-84

 

30 Years

 

Woodcrest I

 

Warner Robins, GA

 

66

 

 

115,739

 

1,028,353

 

 

210,895

 

115,739

 

1,239,248

 

1,354,987

 

(253,998

)

1984

 

30 Years

 

Woodlake (WA)

 

Kirkland, WA

 

288

 

(R

)

6,631,400

 

16,735,484

 

 

1,263,513

 

6,631,400

 

17,998,998

 

24,630,398

 

(4,480,114

)

1984

 

30 Years

 

Woodland Hills

 

Decatur, GA

 

228

 

 

1,224,600

 

11,010,681

 

 

1,917,051

 

1,224,600

 

12,927,732

 

14,152,332

 

(4,335,302

)

1985

 

30 Years

 

Woodland Meadows

 

Ann Arbor, MI

 

306

 

(S

)

2,006,000

 

18,049,552

 

 

1,681,341

 

2,006,000

 

19,730,893

 

21,736,893

 

(5,423,498

)

1987-1989

 

30 Years

 

Woodlands I (Col)

 

Columbus, OH

 

88

 

1,655,571

 

231,996

 

2,044,233

 

 

440,687

 

231,996

 

2,484,920

 

2,716,915

 

(541,088

)

1983

 

30 Years

 

Woodlands I (PA)

 

Zelienople, PA

 

50

 

969,754

 

163,192

 

1,437,897

 

 

232,903

 

163,192

 

1,670,799

 

1,833,991

 

(348,646

)

1983

 

30 Years

 

Woodlands I (Str)

 

Streetsboro, OH

 

60

 

 

197,378

 

1,739,112

 

 

260,478

 

197,378

 

1,999,590

 

2,196,967

 

(441,936

)

1984

 

30 Years

 

Woodlands II (Col)

 

Columbus, OH

 

70

 

1,435,552

 

192,633

 

1,697,310

 

 

333,778

 

192,633

 

2,031,088

 

2,223,721

 

(439,645

)

1984

 

30 Years

 

Woodlands II (PA)

 

Zelienople, PA

 

62

 

 

192,972

 

1,700,297

 

 

159,745

 

192,972

 

1,860,042

 

2,053,014

 

(376,857

)

1987

 

30 Years

 

Woodlands II (Str)

 

Streetsboro, OH

 

60

 

1,480,825

 

183,996

 

1,621,205

 

 

217,784

 

183,996

 

1,838,989

 

2,022,985

 

(404,901

)

1985

 

30 Years

 

Woodlands III (Col)

 

Columbus, OH

 

93

 

 

230,536

 

2,031,249

 

 

500,391

 

230,536

 

2,531,639

 

2,762,175

 

(554,892

)

1987

 

30 Years

 

Woodlands of Brookfield

 

Brookfield, WI

 

148

 

(N

)

1,484,600

 

13,961,081

 

 

1,031,015

 

1,484,600

 

14,992,095

 

16,476,695

 

(3,698,131

)

1990

 

30 Years

 

Woodlands of Minnetonka

 

Minnetonka, MN

 

248

 

 

2,394,500

 

13,543,076

 

 

1,722,736

 

2,394,500

 

15,265,812

 

17,660,312

 

(4,112,003

)

1988

 

30 Years

 

Woodleaf

 

Campbell, CA

 

178

 

(R

)

8,550,600

 

16,988,183

 

 

675,416

 

8,550,600

 

17,663,599

 

26,214,199

 

(4,138,418

)

1984

 

30 Years

 

Woodmoor

 

Austin, TX

 

208

 

 

653,800

 

5,875,968

 

 

2,177,019

 

653,800

 

8,052,987

 

8,706,787

 

(3,562,078

)

1981

 

30 Years

 

Woodridge (CO)

 

Aurora, CO

 

212

 

 

2,780,700

 

7,576,972

 

 

1,188,477

 

2,780,700

 

8,765,449

 

11,546,149

 

(2,364,676

)

1980-82

 

30 Years

 

Woodridge (MN)

 

Eagan, MN

 

200

 

7,276,603

 

1,602,300

 

10,449,579

 

 

1,153,497

 

1,602,300

 

11,603,076

 

13,205,376

 

(3,041,176

)

1986

 

30 Years

 

Woodridge II (CO)

 

Aurora, CO

 

116

 

 

 

4,148,517

 

 

619,130

 

 

4,767,647

 

4,767,647

 

(1,290,865

)

1980-82

 

30 Years

 

Woodridge III (CO)

 

Aurora, CO

 

256

 

 

 

9,130,764

 

 

1,365,767

 

 

10,496,531

 

10,496,531

 

(2,842,985

)

1980-82

 

30 Years

 

Woods of Elm Creek

 

San Antonio, TX

 

185

 

 

590,000

 

5,310,328

 

 

914,515

 

590,000

 

6,224,843

 

6,814,843

 

(1,986,445

)

1983

 

30 Years

 

Woods of North Bend

 

Raleigh, NC

 

235

 

(S

)

1,039,500

 

9,305,319

 

 

1,964,177

 

1,039,500

 

11,269,496

 

12,308,996

 

(4,362,921

)

1983

 

30 Years

 

Woodscape

 

Raleigh, NC

 

240

 

 

957,300

 

8,607,940

 

 

1,166,997

 

957,300

 

9,774,937

 

10,732,237

 

(3,139,609

)

1979

 

30 Years

 

Woodside

 

Lorton, VA

 

252

 

 

1,326,000

 

12,510,903

 

 

1,825,800

 

1,326,000

 

14,336,702

 

15,662,702

 

(5,133,619

)

1987

 

30 Years

 

Woodtrail

 

Newnan, GA

 

61

 

 

250,895

 

2,210,658

 

 

261,610

 

250,895

 

2,472,268

 

2,723,163

 

(497,786

)

1984

 

30 Years

 

Wyndridge 2

 

Memphis, TN

 

284

 

14,135,000

 

1,488,000

 

13,607,636

 

 

1,957,097

 

1,488,000

 

15,564,733

 

17,052,733

 

(4,700,357

)

1988

 

30 Years

 

Wyndridge 3

 

Memphis, TN

 

284

 

10,855,000

 

1,502,500

 

13,531,741

 

 

1,176,297

 

1,502,500

 

14,708,038

 

16,210,538

 

(4,300,010

)

1988

 

30 Years

 

Yarmouth Woods

 

Yarmouth, ME

 

138

 

 

692,800

 

6,096,155

 

 

843,517

 

692,800

 

6,939,672

 

7,632,472

 

(1,825,054

)

1971/1978

 

30 Years

 

Management Business

 

Chicago, IL

 

 

 

 

 

 

40,949,836

 

 

40,949,836

 

40,949,836

 

(21,825,823

)

(D)

 

30 Years

 

Operating Partnership

 

Chicago, IL (H)

 

 

106,081

 

 

43,447

 

 

 

 

43,447

 

43,447

 

 

(F)

 

30 Years

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment in Real Estate

 

 

 

183,931

 

$

2,111,416,752

 

$

2,340,734,919

 

$

11,555,979,825

 

$

 

$

955,905,915

 

$

2,340,734,919

 

$

12,511,885,740

 

$

14,852,620,659

 

$

(2,599,826,521

)

 

 

 

 

 

S-13



 

ERP OPERATING LIMITED PARTNERSHIP

Schedule III - Real Estate and Accumulated Depreciation

December 31, 2004

 


NOTES:

(A)

 

The balance of furniture & fixtures included in the total investment in real estate amount was $683,112,290 as of December 31, 2004.

(B)

 

The aggregate cost for Federal Income Tax purposes as of December 31, 2004 was approximately $9.3 billion.

(C)

 

The life to compute depreciation for furniture & fixtures is 5 years.

(D)

 

This asset consists of various acquisition dates and largely represents furniture, fixtures and equipment owned by the Management Business.

(E)

 

Improvements are net of write-off of fully depreciated assets which are no longer in service.

(F)

 

Represents land, construction-in-progress and/or miscellaneous pursuit costs on projects either held for future development or projects currently under development.

(G)

 

A portion or all of these properties includes commercial space (retail, parking and/or office space).

(H)

 

The mortgage debt is the balance for two properties that were sold, which balance was not collateralized by the respective properties. The amounts were transferred to ERPOP.

(I)

 

These four properties are pledged as additional collateral in connection with various tax-exempt bond financings.

(J)

 

Total units exclude 16,218 unconsolidated units.

 

S-14



 

ERP OPERATING LIMITED PARTNERSHIP

Schedule III - Real Estate and Accumulated Depreciation

Encumbrances Reconciliation

December 31, 2004

 

Entity Encumbrances

 

Number of
Properties
Encumbered By

 

See Properties
With Note:

 

Amount

 

 

 

 

 

 

 

 

 

EQR Arbors Financing LP

 

1

 

(K)

 

$

13,265,000

 

EQR Breton Hammocks Financing LP

 

1

 

(L)

 

15,310,708

 

EQR-Bond Partnership

 

12

 

(M)

 

181,994,000

 

EQR Flatlands LLC

 

5

 

(N)

 

50,000,000

 

EWR, LP

 

5

 

(O)

 

44,239,899

 

GPT-Windsor, LLC

 

16

(P)

 

63,000,000

 

EQR-Codelle, LP

 

10

 

(Q)

 

118,422,038

 

EQR-Conner, LP

 

14

 

(R)

 

206,516,196

 

EQR-FANCAP 2000A LP

 

11

 

(S)

 

148,333,000

 

GC Southeast Partners (SEP)

 

5

 

(T)

 

700,000

 

EQR-Fankey 2004 Ltd. Pship

 

8

 

(U)

 

213,541,577

 

 

 

 

 

 

 

 

 

Entity Encumbrances

 

 

 

 

 

1,055,322,418

 

 

 

 

 

 

 

 

 

Individual Property Encumbrances

 

 

 

 

 

2,111,416,752

 

 

 

 

 

 

 

 

 

Total Encumbrances per Financial Statements

 

 

 

 

 

$

3,166,739,170

 

 


*                 Collateral also includes $3.0 million invested in U.S. Treasury Securities which is included in Deposits - Restricted in the accompanying consolidated balance sheets at December 31, 2004.

 

S-15



 

ERP OPERATING LIMITED PARTNERSHIP

Schedule III - Real Estate and Accumulated Depreciation

(Amounts in thousands)

 

The changes in total real estate for the years ended December 31, 2004, 2003 and 2002 are as follows:

 

 

 

2004

 

2003

 

2002

 

 

 

 

 

 

 

 

 

Balance, beginning of year

 

$

12,874,379

 

$

13,046,263

 

$

13,019,841

 

Acquisitions and development

 

2,563,612

 

800,143

 

528,302

 

Improvements

 

218,724

 

184,876

 

164,077

 

Write-off of fully depreciated assets which are no longer in service

 

 

(31,590

)

 

Dispositions and other

 

(804,094

)

(1,125,313

)

(665,957

)

Balance, end of year

 

$

14,852,621

 

$

12,874,379

 

$

13,046,263

 

 

The changes in accumulated depreciation for the years ended December 31, 2004, 2003, and 2002 are as follows:

 

 

 

2004

 

2003

 

2002

 

 

 

 

 

 

 

 

 

Balance, beginning of year

 

$

2,296,013

 

$

2,112,017

 

$

1,719,131

 

Depreciation

 

496,422

 

470,908

 

471,295

 

Write-off of fully depreciated assets which are no longer in service

 

 

(31,590

)

 

Dispositions and other

 

(192,608

)

(255,322

)

(78,409

)

Balance, end of year

 

$

2,599,827

 

$

2,296,013

 

$

2,112,017

 

 

S-16



 

EXHIBIT INDEX

 

Exhibit

 

Document

 

 

 

12

 

Computation of Ratio of Earnings to Combined Fixed Charges.

 

 

 

21

 

List of Subsidiaries of ERP Operating Partnership

 

 

 

23.1

 

Consent of Ernst & Young LLP.

 

 

 

24.1

 

Power of Attorney for John W. Alexander dated March 9, 2005.

24.2

 

Power of Attorney for Stephen O. Evans dated March 1, 2005.

24.3

 

Power of Attorney for Charles L. Atwood dated March 7, 2005.

24.4

 

Power of Attorney for Desiree G. Rogers dated March 7, 2005.

24.5

 

Power of Attorney for B. Joseph White dated March 4, 2005.

24.6

 

Power of Attorney for Sheli Z. Rosenberg dated March 8, 2005.

24.7

 

Power of Attorney for James D. Harper, Jr. dated March 4, 2005.

24.8

 

Power of Attorney for Boone A. Knox dated March 2, 2005.

24.9

 

Power of Attorney for Samuel Zell dated March 9, 2005.

24.10

 

Power of Attorney for Gerald A. Spector dated March 1, 2005.

 

 

 

31.1

 

Certification of Bruce W. Duncan, Chief Executive Officer of Registrant’s General Partner.

31.2

 

Certification of Donna Brandin, Chief Financial Officer of Registrant’s General Partner.

32.1

 

Certification Pursuant to 18 U.S.C. Section 1350, as adopted, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Bruce W. Duncan, Chief Executive Officer of Registrant’s General Partner.

32.2

 

Certification Pursuant to 18 U.S.C. Section 1350, as adopted, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Donna Brandin, Chief Financial Officer of Registrant’s General Partner.