Equity Residential Reports Second Quarter Results

"We are very pleased with our operating performance for the first half of the year with solid occupancy and good revenue growth across most of our major markets," said David J. Neithercut, Equity Residential's President and CEO. "And we will produce good results for the year, with same store revenue growth of 3% to 3.5%, which is modestly short of our original expectations as many of our markets are feeling the impact of job losses due to a challenging economic environment."

Second Quarter 2008

For the quarter ended June 30, 2008, the company reported earnings of $0.47 per share compared to $0.95 per share in the second quarter of 2007. The decrease is primarily attributable to lower gains on property sales due to a lower volume of property sales in 2008.

Funds from Operations (FFO) for the quarter ended June 30, 2008 were $0.64 per share compared to $0.60 per share in the same period of 2007. The $0.04 per share increase in the second quarter of 2008 is due primarily to:

-- A net positive impact of approximately $0.03 per share from higher total net operating income (NOI) as a result of higher NOI from the company's same store portfolio and the lease up of development and other non-same store properties, partially offset by dilution from the company's 2007 and 2008 transaction activity;

-- A net cumulative positive impact on interest expense and preferred share distributions of approximately $0.08 per share due primarily to lower floating rates of interest, the use of sales proceeds to pay down debt, higher capitalized interest, lower debt extinguishment costs and lower share count, partially offset by the increased interest expense associated with the company's 2007 share buyback;

-- A negative impact of approximately $0.04 per share from the company's condominium operations; and

-- A negative impact of approximately $0.03 per share due to higher income taxes, no gains on land sales and certain other non-comparable items listed on page 24 of this release.

Six Months Ended June 30, 2008

For the six months ended June 30, 2008, the company reported earnings of $0.98 per share compared to $1.35 per share in the same period of 2007.

FFO for the six months ended June 30, 2008 were $1.23 per share compared to $1.15 per share in the same period of 2007.

Same Store Results

On a same store second quarter to second quarter comparison, which includes 123,246 apartment units, revenues increased 4.0%, expenses increased 2.4% and NOI increased 4.9%. The increase in same store revenues was driven primarily by an increase in average rental rate.

On a same store six-month to six-month comparison, which includes 119,546 apartment units, revenues increased 3.8%, expenses increased 2.0% and NOI increased 4.8%. The increase in same store revenues was driven primarily by an increase in average rental rate.

Acquisitions/Dispositions

During the second quarter of 2008, the company acquired four properties, consisting of 1,666 apartment units, for an aggregate purchase price of $295.0 million at an average capitalization (cap) rate of 6.0%. In addition, the company acquired an uncompleted development property for a purchase price of $31.7 million.

Also during the quarter, the company sold eight properties, consisting of 1,965 apartment units, for an aggregate sale price of $206.9 million at an average cap rate of 5.6% generating an unlevered internal rate of return (IRR) of 10.9%. In addition, the company sold 32 condominium units for an aggregate sale price of $6.1 million.

During the first six months of 2008, the company acquired six properties, consisting of 1,837 apartment units, for an aggregate purchase price of $336.9 million at an average cap rate of 5.9%, as well as an uncompleted development property for a purchase price of $31.7 million.

Also during the first six months of 2008, the company sold 23 properties, consisting of 5,282 apartment units, for an aggregate sale price of $478.5 million at an average cap rate of 5.7% generating an unlevered IRR of 10.7%. In addition, the company sold 73 condominium units for an aggregate sale price of $15.5 million.

Liquidity

The company recently agreed to borrow $550 million in a loan originated by Wells Fargo (NYSE:WFC) for repurchase by Fannie Mae (NYSE:FNM). This is a secured loan with an all-in effective interest rate of approximately 6%. The loan is interest only and matures in 11.5 years with the first 10.5 years fixed and the last year at a floating rate of interest. The funding is expected to occur in late August 2008. Equity Residential currently has approximately $1.4 billion available on its unsecured revolving credit facility and approximately $145 million of unrestricted cash. These existing funding sources, combined with the new Fannie Mae/Wells Fargo borrowing, give the company ample liquidity to meet its 2008 and 2009 funding requirements.

Third Quarter 2008 Earnings Guidance

The company has established an FFO guidance range of $0.61 to $0.65 per share for the third quarter of 2008. When compared to the second quarter 2008, the company's third quarter FFO results will reflect a continued contribution from good same store operating performance and be negatively impacted by approximately $0.01 per share in connection with the timing of its new secured loan from Fannie Mae.

Full Year 2008 Guidance

The company has revised its guidance for its full year 2008 same store operating performance, funds from operations results and transactions activities as well as other items listed on page 25 of this release. The changes to the full year same store and FFO guidance are listed below:

Previous Revised Same store: Revenue change 3.00% to 4.00% 3.00% to 3.50% Expense change 2.50% to 3.25% 2.25% to 2.50% NOI change 3.00% to 4.75% 3.50% to 4.00% FFO $2.45 to $2.60 $2.45 to $2.55

The company's full year 2008 FFO results will reflect a continued contribution from good same store operating performance and be negatively impacted by approximately $0.04 per share due to losses from its condominium conversion business and $0.02 per share from the timing of its new secured loan from Fannie Mae. As a result, the company anticipates FFO results at the midpoint of the revised guidance range.

Third Quarter 2008 Conference Call

Equity Residential expects to announce third quarter 2008 results on Wednesday, October 29, 2008 and host a conference call to discuss those results at 10:00 a.m. CT on Thursday, October 30, 2008.

Equity Residential is an S&P 500 company focused on the acquisition, development and management of high quality apartment properties in top U.S. growth markets. Equity Residential owns or has investments in 564 properties located in 23 states and the District of Columbia, consisting of 150,699 apartment units. For more information on Equity Residential, please visit our website at www.equityresidential.com.

Forward-Looking Statements

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

A live web cast of the company's conference call discussing these results and outlook for 2008 will take place tomorrow, Thursday, July 31, at 10:00 a.m. Central. Please visit the Investor Information section of the company's web site at www.equityresidential.com for the link. A replay of the web cast will be available for two weeks at this site.

EQUITY RESIDENTIAL CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands except per share data) (Unaudited) Six Months Ended June 30, Quarter Ended June 30, ------------------------- ------------------------- 2008 2007 2008 2007 ------------ ------------ ------------ ------------ REVENUES Rental income $1,047,943 $957,654 $532,809 $489,124 Fee and asset management 5,010 4,703 2,716 2,436 ------------ ------------ ------------ ------------ Total revenues 1,052,953 962,357 535,525 491,560 ------------ ------------ ------------ ------------ EXPENSES Property and maintenance 271,876 250,832 135,769 125,446 Real estate taxes and insurance 109,940 102,455 54,613 50,686 Property management 40,587 47,262 19,450 22,420 Fee and asset management 4,171 4,504 1,991 2,163 Depreciation 290,605 280,941 145,485 143,456 General and administrative 24,191 20,816 11,774 11,447 Impairment 703 394 584 158 ------------ ------------ ------------ ------------ Total expenses 742,073 707,204 369,666 355,776 ------------ ------------ ------------ ------------ Operating income 310,880 255,153 165,859 135,784 Interest and other income 8,181 6,216 4,813 3,778 Interest: Expense incurred, net (234,731) (232,445) (117,484) (121,789) Amortization of deferred financing costs (4,340) (5,832) (2,179) (3,611) ------------ ------------ ------------ ------------ Income before income and other taxes, allocation to Minority Interests, loss from investments in unconsolidated entities, net gain on sales of land parcels and discontinued operations 79,990 23,092 51,009 14,162 Income and other tax (expense) benefit (4,624) (698) (1,628) (101) Allocation to Minority Interests: Operating Partnership, net (4,167) (640) (2,735) (671) Preference Interests and Units (7) (434) (3) (211) Partially Owned Properties (1,659) (779) (1,391) (187) Loss from investments in unconsolidated entities (190) (363) (95) (134) Net gain on sales of land parcels - 4,516 - 4,516 ------------ ------------ ------------ ------------ Income from continuing operations, net of minority interests 69,343 24,694 45,157 17,374 Discontinued operations, net of minority interests 203,751 383,944 87,455 265,027 ------------ ------------ ------------ ------------ Net income 273,094 408,638 132,612 282,401 Preferred distributions (7,259) (14,840) (3,626) (7,416) ------------ ------------ ------------ ------------ Net income available to Common Shares $265,835 $393,798 $128,986 $274,985 ============ ============ ============ ============ Earnings per share - basic: Income from continuing operations available to Common Shares $0.23 $0.03 $0.15 $0.04 ============ ============ ============ ============ Net income available to Common Shares $0.99 $1.37 $0.48 $0.97 ============ ============ ============ ============ Weighted average Common Shares outstanding 269,196 288,316 269,608 284,424 ============ ============ ============ ============ Earnings per share - diluted: Income from continuing operations available to Common Shares $0.23 $0.03 $0.15 $0.03 ============ ============ ============ ============ Net income available to Common Shares $0.98 $1.35 $0.47 $0.95 ============ ============ ============ ============ Weighted average Common Shares outstanding 289,921 311,963 290,445 307,631 ============ ============ ============ ============ Distributions declared per Common Share outstanding $0.9650 $0.9250 $0.4825 $0.4625 ============ ============ ============ ============

EQUITY RESIDENTIAL CONSOLIDATED STATEMENTS OF FUNDS FROM OPERATIONS (Amounts in thousands except per share data) (Unaudited) Six Months Ended June 30, Quarter Ended June 30, ------------------------- ------------------------- 2008 2007 2008 2007 ------------ ------------ ------------ ------------ Net income $273,094 $408,638 $132,612 $282,401 Allocation to Minority Interests - Operating Partnership, net 4,167 640 2,735 671 Adjustments: Depreciation 290,605 280,941 145,485 143,456 Depreciation - Non-real estate additions (4,081) (4,173) (2,030) (2,138) Depreciation - Partially Owned and Unconsolidated Properties 2,040 2,081 1,006 1,138 Discontinued operations: Depreciation 3,569 30,800 1,109 13,611 Gain on sales of discontinued operations, net of minority interests (201,329) (361,525) (86,568) (256,569) Net incremental (loss) gain on sales of condominium units (3,090) 13,587 (3,456) 8,903 Minority Interests - Operating Partnership 162 1,487 58 560 ------------ ------------ ------------ ------------ FFO (1)(2) 365,137 372,476 190,951 192,033 Preferred distributions (7,259) (14,840) (3,626) (7,416) ------------ ------------ ------------ ------------ FFO available to Common Shares and OP Units - basic (1) (2) $357,878 $357,636 $187,325 $184,617 ============ ============ ============ ============ FFO available to Common Shares and OP Units - diluted (1) (2) $358,219 $358,035 $187,493 $184,811 ============ ============ ============ ============ FFO per share and OP Unit - basic $1.25 $1.16 $0.65 $0.61 ============ ============ ============ ============ FFO per share and OP Unit - diluted $1.23 $1.15 $0.64 $0.60 ============ ============ ============ ============ Weighted average Common Shares and OP Units outstanding - basic 287,260 307,582 287,440 303,511 ============ ============ ============ ============ Weighted average Common Shares and OP Units outstanding - diluted 290,360 312,478 290,878 308,131 ============ ============ ============ ============

(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 Company commences the conversion of units to condominiums, it simultaneously discontinues depreciation of such property. FFO available to Common Shares and OP Units is calculated on a basis consistent with net income available to Common Shares and reflects adjustments to net income for preferred distributions and premiums on redemption of preferred shares in accordance with accounting principles generally accepted in the United States. The equity positions of various individuals and entities that contributed their properties to the Operating Partnership in exchange for OP Units are collectively referred to as the "Minority Interests - Operating Partnership". Subject to certain restrictions, the Minority Interests - Operating Partnership may exchange their OP Units for EQR Common Shares on a one-for-one basis.

(2) The Company believes that FFO and FFO available to Common Shares and OP Units are helpful to investors as supplemental measures of the operating performance of a real estate company, because they are recognized measures of performance by the real estate industry and by excluding gains or losses 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 and FFO available to Common Shares and OP Units can help compare the operating performance of a company's real estate between periods or as compared to different companies. FFO and FFO available to Common Shares and OP Units do not represent net income, net income available to Common Shares or net cash flows from operating activities in accordance with GAAP. Therefore, FFO and FFO available to Common Shares and OP Units should not be exclusively considered as alternatives to net income, net income available to Common Shares or net cash flows from operating activities as determined by GAAP or as a measure of liquidity. The Company's calculation of FFO and FFO available to Common Shares and OP Units may differ from other real estate companies due to, among other items, variations in cost capitalization policies for capital expenditures and, accordingly, may not be comparable to such other real estate companies.

EQUITY RESIDENTIAL CONSOLIDATED BALANCE SHEETS (Amounts in thousands except for share amounts) (Unaudited) June 30, December 31, 2008 2007 ------------ ------------ ASSETS Investment in real estate Land $3,684,584 $3,607,305 Depreciable property 13,899,777 13,556,681 Projects under development 763,327 828,530 Land held for development 358,955 340,834 ------------ ------------ Investment in real estate 18,706,643 18,333,350 Accumulated depreciation (3,343,071) (3,170,125) ------------ ------------ Investment in real estate, net 15,363,572 15,163,225 Cash and cash equivalents 273,600 50,831 Investments in unconsolidated entities 3,308 3,547 Deposits - restricted 217,107 253,276 Escrow deposits - mortgage 19,637 20,174 Deferred financing costs, net 54,785 56,271 Other assets 151,214 142,453 ------------ ------------ Total assets $16,083,223 $15,689,777 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage notes payable $4,103,913 $3,605,971 Notes, net 5,765,803 5,763,762 Lines of credit - 139,000 Accounts payable and accrued expenses 148,660 109,385 Accrued interest payable 116,985 124,717 Other liabilities 303,806 322,975 Security deposits 64,225 62,159 Distributions payable 141,478 141,244 ------------ ------------ Total liabilities 10,644,870 10,269,213 ------------ ------------ Commitments and contingencies Minority Interests: Operating Partnership 320,754 331,626 Preference Interests and Units 184 184 Partially Owned Properties 25,842 26,236 ------------ ------------ Total Minority Interests 346,780 358,046 ------------ ------------ Shareholders' equity: Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized; 1,963,975 shares issued and outstanding as of June 30, 2008 and 1,986,475 shares issued and outstanding as of December 31, 2007 209,099 209,662 Common Shares of beneficial interest, $0.01 par value; 1,000,000,000 shares authorized; 270,927,139 shares issued and outstanding as of June 30, 2008 and 269,554,661 shares issued and outstanding as of December 31, 2007 2,709 2,696 Paid in capital 4,295,637 4,266,538 Retained earnings 604,373 599,504 Accumulated other comprehensive loss (20,245) (15,882) ------------ ------------ Total shareholders' equity 5,091,573 5,062,518 ------------ ------------ Total liabilities and shareholders' equity $16,083,223 $15,689,777 ============ ============

EQUITY RESIDENTIAL Portfolio Summary As of June 30, 2008 % of % of 2008 Average Total Stabilized Rental Markets Properties Units Units NOI Rate (1) ----------------- ---------- -------- ------- ---------- ---------- New York Metro 1 Area 22 6,246 4.1% 10.1% $2,752 DC Northern 2 Virginia 26 8,781 5.8% 8.3% 1,659 3 Los Angeles 37 7,714 5.1% 8.2% 1,783 4 South Florida 39 12,897 8.6% 8.1% 1,301 5 Seattle/Tacoma 48 11,071 7.4% 7.2% 1,338 6 Boston 37 6,217 4.1% 6.2% 1,867 San Francisco Bay 7 Area 33 6,623 4.4% 6.0% 1,673 8 Phoenix 41 11,780 7.8% 5.6% 933 9 Denver 26 8,902 5.9% 4.9% 991 10 San Diego 14 4,491 3.0% 4.3% 1,644 11 Orlando 25 7,877 5.2% 4.3% 1,033 12 Atlanta 30 9,110 6.0% 4.1% 957 13 Inland Empire, CA 15 4,655 3.1% 3.6% 1,358 14 Suburban Maryland 21 5,559 3.7% 3.2% 1,189 15 Orange County 10 3,307 2.2% 3.2% 1,601 New England (excluding 16 Boston) 33 4,925 3.3% 2.5% 1,102 17 Jacksonville 12 3,951 2.6% 1.8% 898 18 Portland, OR 11 3,713 2.5% 1.8% 957 19 Tampa/Ft. Myers 11 3,414 2.3% 1.4% 933 20 Dallas/Ft. Worth 15 3,631 2.4% 1.3% 919 ---------- -------- ------- ---------- ---------- Top 20 Total 506 134,864 89.5% 96.1% 1,345 21 Austin 9 2,985 2.0% 1.3% 897 22 Raleigh/Durham 12 3,058 2.0% 1.2% 812 Central Valley, 23 CA 11 1,853 1.2% 0.9% 1,108 24 Other EQR 17 3,784 2.5% 0.5% 851 ---------- -------- ------- ---------- ---------- Total 555 146,544 97.2% 100.0% 1,309 Condominium Conversion 8 424 0.3% - - Military Housing 1 3,731 2.5% - - ---------- -------- ------- ---------- ---------- Grand Total 564 150,699 100.0% 100.0% $1,309 ========== ======== ======= ========== ==========

(1) Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the month of June 2008.

EQUITY RESIDENTIAL Portfolio as of June 30, 2008 Properties Units ---------- ----------- Wholly Owned Properties 491 130,813 Partially Owned Properties: Consolidated 28 5,709 Unconsolidated 44 10,446 Military Housing (Fee Managed) 1 3,731 ---------- ----------- 564 150,699 Portfolio Rollforward Q2 2008 Properties Units $ Thousands Cap Rate ---------- ---------- ----------- -------- 3/31/2008 565 149,769 Acquisitions: Rental Properties 4 1,666 $295,000 6.0% Uncompleted Developments (1) - - $31,705 Dispositions: Rental Properties (8) (1,965) $(206,906) 5.6% Condominium Conversion Properties (1) (32) $(6,053) Completed Developments 4 1,261 ---------- ---------- 6/30/2008 564 150,699 Portfolio Rollforward 2008 Properties Units $ Thousands Cap Rate ---------- ---------- ----------- -------- 12/31/2007 579 152,821 Acquisitions: Rental Properties 6 1,837 $336,863 5.9% Uncompleted Developments (1) - - $31,705 Dispositions: Rental Properties (23) (5,282) $(478,549) 5.7% Condominium Conversion Properties (3) (73) $(15,498) Completed Developments 5 1,393 Configuration Changes - 3 ---------- ---------- 6/30/2008 564 150,699

(1) Represents the acquisition of Mosaic at Metro in Hyattsville, Maryland. See the Consolidated Development Projects on page 20 for further information.

EQUITY RESIDENTIAL Second Quarter 2008 vs. Second Quarter 2007 Quarter over Quarter Same Store Results/Statistics $ in Thousands (except for Average Rental Rate) - 123,246 Same Store Units Results Statistics ------------------------------ -------------------------- Average Rental Rate Description Revenues Expenses NOI (1) (2) Occupancy Turnover ------------ --------- ---------- --------- ------- --------- -------- Q2 2008 $461,335 $167,284 $294,051 $1,315 95.0% 15.9% Q2 2007 $443,721 $163,420 $280,301 $1,268 94.8% 16.4% --------- ---------- --------- ------- --------- -------- Change $17,614 $3,864 $13,750 $47 0.2% (0.5%) ========= ========== ========= ======= ========= ======== Change 4.0% 2.4% 4.9% 3.7% Second Quarter 2008 vs. First Quarter 2008 Sequential Quarter over Quarter Same Store Results/Statistics $ in Thousands (except for Average Rental Rate) - 128,991 Same Store Units Results Statistics ------------------------------ -------------------------- Average Rental Rate Description Revenues Expenses NOI (1) (2) Occupancy Turnover ------------ --------- ---------- --------- ------- --------- -------- Q2 2008 $489,456 $178,642 $310,814 $1,334 94.9% 16.0% Q1 2008 $481,315 $181,228 $300,087 $1,321 94.3% 13.7% --------- ---------- --------- ------- --------- -------- Change $8,141 $(2,586) $10,727 $13 0.6% 2.3% ========= ========== ========= ======= ========= ======== Change 1.7% (1.4%) 3.6% 1.0% June YTD 2008 vs. June YTD 2007 YTD over YTD Same Store Results/Statistics $ in Thousands (except for Average Rental Rate) - 119,546 Same Store Units Results Statistics ------------------------------ -------------------------- Average Rental Rate Description Revenues Expenses NOI (1) (2) Occupancy Turnover ------------ --------- ---------- --------- ------- --------- -------- YTD 2008 $889,236 $327,018 $562,218 $1,311 94.7% 29.6% YTD 2007 $856,947 $320,631 $536,316 $1,262 94.8% 29.9% --------- ---------- --------- ------- --------- -------- Change $32,289 $6,387 $25,902 $49 (0.1%) (0.3%) ========= ========== ========= ======= ========= ======== Change 3.8% 2.0% 4.8% 3.9%

(1) The Company's primary financial measure for evaluating each of its apartment communities is net operating income ("NOI"). NOI represents rental income less property and maintenance expense, real estate tax and insurance expense, and property management expense. The Company 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 Company's apartment communities.

(2) Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period.

EQUITY RESIDENTIAL Same Store NOI Reconciliation Second Quarter 2008 vs. Second Quarter 2007 The following table presents a reconciliation of operating income per the consolidated statements of operations to NOI for the Second Quarter 2008 Same Store Properties: Quarter Ended June 30, ------------------------- 2008 2007 ------------ ------------ (Amounts in thousands) Operating income $165,859 $135,784 Adjustments: Non-same store operating results (28,926) (10,271) Fee and asset management revenue (2,716) (2,436) Fee and asset management expense 1,991 2,163 Depreciation 145,485 143,456 General and administrative 11,774 11,447 Impairment 584 158 ------------ ------------ Same store NOI $294,051 $280,301 ============ ============ Same Store NOI Reconciliation June YTD 2008 vs. June YTD 2007 The following table presents a reconciliation of operating income per the consolidated statements of operations to NOI for the Six-Month 2008 Same Store Properties: Six Months Ended June 30, ------------------------- 2008 2007 ------------ ------------ (Amounts in thousands) Operating income $310,880 $255,153 Adjustments: Non-same store operating results (63,322) (20,789) Fee and asset management revenue (5,010) (4,703) Fee and asset management expense 4,171 4,504 Depreciation 290,605 280,941 General and administrative 24,191 20,816 Impairment 703 394 ------------ ------------ Same store NOI $562,218 $536,316 ============ ============

EQUITY RESIDENTIAL Second Quarter 2008 vs. Second Quarter 2007 Same Store Results by Market ------------------------------------------------------------------ Q2 2008 Q2 2008 Q2 2008 % of Average Weighted Actual Rental Average Markets Units NOI Rate (1) Occupancy % ------------------------------------------------------------------ New York Metro 1 Area 5,443 9.8% $2,712 96.1% 2 South Florida 11,433 8.5% 1,312 94.0% 3 Los Angeles 6,864 8.0% 1,754 94.9% 4 Seattle/Tacoma 8,604 7.4% 1,364 95.0% DC Northern 5 Virginia 6,870 7.1% 1,543 96.1% 6 Boston 5,649 6.5% 1,890 96.2% San Francisco 7 Bay Area 5,793 6.1% 1,627 95.6% 8 Phoenix 9,990 5.5% 925 94.1% 9 Denver 7,605 4.7% 967 95.1% 10 Orlando 7,243 4.5% 1,032 93.8% 11 Atlanta 7,926 4.4% 985 95.1% 12 San Diego 3,822 4.1% 1,645 94.5% Inland Empire, 13 CA 4,355 3.8% 1,358 95.0% 14 Orange County 3,175 3.4% 1,606 94.5% New England (excluding 15 Boston) 4,925 2.8% 1,107 95.2% Suburban 16 Maryland 3,687 2.6% 1,172 95.2% 17 Portland, OR 3,409 2.0% 969 95.4% 18 Jacksonville 3,231 1.7% 899 93.6% Dallas/Ft. 19 Worth 2,601 1.4% 990 96.0% 20 Austin 2,985 1.4% 901 95.6% --------------------------------------------------- Top 20 Markets 115,610 95.7% 1,339 95.0% All Other Markets 7,636 4.3% 952 95.1% --------------------------------------------------- Total 123,246 100.0% $1,315 95.0% =================================================== ------------------------------------------ Increase (Decrease) from Prior Year's Quarter ------------------------------------------------------------------- Average Rental Rate Markets Units Revenues Expenses NOI (1) Occupancy ------------------------------------------------------------------- New York Metro 1 Area 5,443 5.0% 3.3% 5.8% 5.3% (0.2%) 2 South Florida 11,433 0.3% 2.8% (1.4%) (0.6%) 0.8% 3 Los Angeles 6,864 4.3% 3.2% 4.7% 4.8% (0.5%) 4 Seattle/Tacoma 8,604 9.2% 4.1% 12.2% 9.3% 0.0% DC Northern 5 Virginia 6,870 5.9% (2.9%) 10.5% 4.7% 1.0% 6 Boston 5,649 4.2% 1.8% 5.7% 3.6% 0.5% San Francisco 7 Bay Area 5,793 7.7% 3.5% 9.8% 8.1% (0.4%) 8 Phoenix 9,990 (0.1%) 2.2% (1.4%) (0.9%) 0.7% 9 Denver 7,605 6.6% 4.4% 7.8% 7.1% (0.4%) 10 Orlando 7,243 (1.2%) 0.4% (2.1%) (1.3%) 0.1% 11 Atlanta 7,926 4.4% 4.1% 4.7% 4.5% (0.1%) 12 San Diego 3,822 3.2% 2.1% 3.7% 3.5% (0.3%) Inland Empire, 13 CA 4,355 2.5% 1.3% 3.1% 1.2% 1.2% 14 Orange County 3,175 3.6% 0.7% 5.0% 4.6% (1.0%) New England (excluding 15 Boston) 4,925 2.2% (0.1%) 4.2% 2.2% (0.1%) Suburban 16 Maryland 3,687 9.0% 6.6% 10.5% 7.0% 1.7% 17 Portland, OR 3,409 5.4% 1.7% 7.9% 6.2% (0.7%) 18 Jacksonville 3,231 (2.4%) 2.8% (5.7%) (1.5%) (0.9%) Dallas/Ft. 19 Worth 2,601 4.8% 7.3% 3.0% 4.6% 0.2% 20 Austin 2,985 6.2% 2.4% 9.9% 5.7% 0.5% --------------------------------------------------- Top 20 Markets 115,610 4.0% 2.4% 5.0% 3.8% 0.2% All Other Markets 7,636 2.7% 1.0% 3.8% 1.8% 0.8% --------------------------------------------------- Total 123,246 4.0% 2.4% 4.9% 3.7% 0.2% ===================================================

(1) Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period.

EQUITY RESIDENTIAL Second Quarter 2008 vs. First Quarter 2008 Sequential Same Store Results by Market ------------------------------------------------------------------ Q2 2008 Q2 2008 Q2 2008 % of Average Weighted Actual Rental Average Markets Units NOI Rate (1) Occupancy % ------------------------------------------------------------------ New York Metro 1 Area 6,246 10.4% $2,760 95.1% 2 South Florida 11,761 8.2% 1,308 94.1% DC Northern 3 Virginia 7,661 8.1% 1,653 96.1% 4 Los Angeles 6,864 7.5% 1,754 94.9% 5 Seattle/Tacoma 8,708 7.1% 1,369 95.0% San Francisco 6 Bay Area 6,364 6.4% 1,669 95.8% 7 Boston 5,805 6.3% 1,878 96.2% 8 Phoenix 10,238 5.4% 927 94.1% 9 Denver 8,355 4.9% 981 95.2% 10 San Diego 4,491 4.5% 1,631 94.3% 11 Orlando 7,525 4.4% 1,035 93.8% 12 Atlanta 7,926 4.1% 985 95.1% Inland Empire, 13 CA 4,355 3.6% 1,358 95.0% 14 Orange County 3,175 3.2% 1,606 94.5% New England (excluding 15 Boston) 4,925 2.7% 1,107 95.2% Suburban 16 Maryland 3,977 2.6% 1,148 95.3% 17 Portland, OR 3,409 1.9% 969 95.4% 18 Jacksonville 3,711 1.8% 914 93.6% 19 Tampa 2,854 1.5% 954 94.4% Dallas/Ft. 20 Worth 2,601 1.4% 990 96.0% --------------------------------------------------- Top 20 Markets 120,951 96.0% 1,361 94.9% All Other Markets 8,040 4.0% 938 95.5% --------------------------------------------------- Total 128,991 100.0% $1,334 94.9% =================================================== ------------------------------------------ Increase (Decrease) from Prior Quarter ------------------------------------------------------------------- Average Rental Rate Markets Units Revenues Expenses NOI (1) Occupancy ------------------------------------------------------------------- New York Metro 1 Area 6,246 3.5% (7.2%) 10.0% 1.5% 1.9% 2 South Florida 11,761 0.9% 0.7% 1.1% 0.3% 0.6% DC Northern 3 Virginia 7,661 2.7% (5.6%) 6.9% 1.3% 1.3% 4 Los Angeles 6,864 1.9% (0.4%) 3.0% 0.5% 1.3% 5 Seattle/Tacoma 8,708 4.0% 0.2% 6.2% 3.1% 0.9% San Francisco 6 Bay Area 6,364 1.7% 1.7% 1.7% 1.3% 0.4% 7 Boston 5,805 2.2% (3.4%) 6.0% 1.5% 0.6% 8 Phoenix 10,238 (1.6%) 0.6% (3.0%) (0.4%) (1.2%) 9 Denver 8,355 1.4% 3.9% 0.1% 1.2% 0.1% 10 San Diego 4,491 1.0% (3.1%) 3.1% 0.6% 0.4% 11 Orlando 7,525 (0.4%) (3.5%) 1.6% (0.7%) 0.3% 12 Atlanta 7,926 2.1% 1.1% 2.8% 1.1% 1.0% Inland Empire, 13 CA 4,355 1.1% (0.9%) 2.1% (1.2%) 2.2% 14 Orange County 3,175 1.2% 1.5% 1.0% 0.7% 0.4% New England (excluding 15 Boston) 4,925 1.4% (7.0%) 10.1% 0.3% 1.1% Suburban 16 Maryland 3,977 4.2% (0.8%) 7.5% 2.0% 2.0% 17 Portland, OR 3,409 1.4% (1.5%) 3.3% 1.0% 0.4% 18 Jacksonville 3,711 (1.4%) (1.7%) (1.2%) (1.4%) 0.1% 19 Tampa 2,854 (0.2%) (4.1%) 2.7% (0.7%) 0.5% Dallas/Ft. 20 Worth 2,601 2.3% 5.3% 0.1% 1.7% 0.6% ---------------------------------------------------- Top 20 Markets 120,951 1.7% (1.6%) 3.7% 1.0% 0.7% All Other Markets 8,040 1.4% 2.5% 0.6% 1.0% 0.4% ---------------------------------------------------- Total 128,991 1.7% (1.4%) 3.6% 1.0% 0.6% ====================================================

(1) Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period.

EQUITY RESIDENTIAL June YTD 2008 vs. June YTD 2007 Same Store Results by Market ------------------------------------------------------------------- Jun YTD 08 Jun YTD 08 Jun YTD 08 % of Average Weighted Actual Rental Average Markets Units NOI Rate (1) Occupancy % ------------------------------------------------------------------- New York Metro 1 Area 5,443 9.9% $2,710 95.2% 2 Los Angeles 6,748 8.0% 1,739 94.2% 3 Seattle/Tacoma 8,402 7.4% 1,346 94.4% DC Northern 4 Virginia 6,870 7.2% 1,535 95.5% 5 South Florida 9,347 7.1% 1,295 93.9% 6 Boston 5,649 6.6% 1,876 95.8% San Francisco 7 Bay Area 5,793 6.3% 1,616 95.3% 8 Phoenix 9,350 5.5% 929 94.9% 9 Denver 7,605 4.9% 962 95.1% 10 Orlando 6,931 4.4% 1,037 93.6% 11 Atlanta 7,744 4.4% 978 94.6% 12 San Diego 3,822 4.3% 1,642 94.3% Inland Empire, 13 CA 4,355 4.0% 1,366 94.0% 14 Orange County 3,013 3.4% 1,606 94.2% New England (excluding 15 Boston) 4,925 2.8% 1,105 94.7% Suburban 16 Maryland 3,687 2.7% 1,160 94.3% 17 Portland, OR 3,409 2.0% 966 95.1% 18 Jacksonville 3,231 1.7% 908 93.6% Dallas/Ft. 19 Worth 2,601 1.5% 982 95.7% 20 Austin 2,985 1.5% 897 96.0% --------------------------------------------------- Top 20 Markets 111,910 95.6% 1,336 94.7% All Other Markets 7,636 4.4% 950 94.7% --------------------------------------------------- Total 119,546 100.0% $1,311 94.7% =================================================== ------------------------------------------- Increase (Decrease) from Prior Year ------------------------------------------------------------------- Average Rental Markets Units Revenues Expenses NOI Rate (1) Occupancy ------------------------------------------------------------------- New York Metro 1 Area 5,443 5.0% 4.5% 5.2% 6.0% (0.9%) 2 Los Angeles 6,748 4.2% 1.8% 5.3% 5.2% (0.9%) 3 Seattle/Tacoma 8,402 8.6% 3.2% 11.9% 8.9% (0.2%) DC Northern 4 Virginia 6,870 4.5% (2.4%) 8.2% 3.9% 0.5% 5 South Florida 9,347 (0.7%) 1.7% (2.2%) (0.9%) 0.2% 6 Boston 5,649 3.7% 4.2% 3.5% 2.3% 1.3% San Francisco 7 Bay Area 5,793 7.8% 1.2% 11.4% 8.2% (0.4%) 8 Phoenix 9,350 0.4% 0.5% 0.4% (0.5%) 0.9% 9 Denver 7,605 6.9% 0.9% 10.1% 7.2% (0.3%) 10 Orlando 6,931 (1.5%) 1.5% (3.2%) (1.3%) (0.2%) 11 Atlanta 7,744 3.9% 2.8% 4.8% 4.7% (0.7%) 12 San Diego 3,822 3.5% 2.4% 4.0% 3.8% (0.3%) Inland Empire, 13 CA 4,355 2.3% 0.1% 3.5% 2.3% 0.0% 14 Orange County 3,013 3.6% 0.7% 4.9% 5.1% (1.3%) New England (excluding 15 Boston) 4,925 2.2% 3.9% 0.6% 2.5% (0.4%) Suburban 16 Maryland 3,687 7.9% 1.0% 12.7% 6.7% 1.0% 17 Portland, OR 3,409 5.5% 2.8% 7.3% 6.0% (0.4%) 18 Jacksonville 3,231 (1.0%) 3.2% (3.7%) 0.0% (1.0%) Dallas/Ft. 19 Worth 2,601 5.0% 5.1% 4.9% 4.4% 0.5% 20 Austin 2,985 5.9% 2.5% 8.9% 6.0% (0.1%) ---------------------------------------------------- Top 20 Markets 111,910 3.9% 2.1% 4.9% 3.9% (0.1%) All Other Markets 7,636 2.0% 0.7% 2.9% 1.9% 0.0% ---------------------------------------------------- Total 119,546 3.8% 2.0% 4.8% 3.9% (0.1%) ====================================================

(1) Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period.

EQUITY RESIDENTIAL Debt Summary as of June 30, 2008 (Amounts in thousands) Weighted Weighted Average Average Maturities Amounts (1) % of Total Rates (1) (years) ------------ ------------ ------------ ------------ Secured $4,103,913 41.6% 5.16% 8.0 Unsecured 5,765,803 58.4% 5.50% 5.8 ------------ ------------ ------------ ------------ Total $9,869,716 100.0% 5.36% 6.7 ============ ============ ============ ============ Fixed Rate Debt: Secured - Conventional $2,917,404 29.6% 6.01% 6.0 Unsecured - Public/Private 5,003,472 50.7% 5.68% 5.9 Unsecured - Tax Exempt 111,390 1.1% 5.06% 20.8 ------------ ------------ ------------ ------------ Fixed Rate Debt 8,032,266 81.4% 5.78% 6.2 ------------ ------------ ------------ ------------ Floating Rate Debt: Secured - Conventional 569,136 5.8% 3.84% 4.6 Secured - Tax Exempt 617,373 6.2% 2.51% 20.9 Unsecured - Public/Private 650,941 6.6% 4.29% 1.9 Unsecured - Revolving Credit Facility - - 4.29% 3.6 ------------ ------------ ------------ ------------ Floating Rate Debt 1,837,450 18.6% 3.56% 8.9 ------------ ------------ ------------ ------------ Total $9,869,716 100.0% 5.36% 6.7 ============ ============ ============ ============

(1) Net of the effect of any derivative instruments. Weighted average rates are for the six months ended June 30, 2008.

Note: The Company capitalized interest of approximately $29.5 million and $17.9 million during the six months ended June 30, 2008 and 2007, respectively. The Company capitalized interest of approximately $14.8 and $10.0 during the quarters ended June 30, 2008 and 2007, respectively.

Debt Maturity Schedule as of June 30, 2008 (Amounts in thousands) Weighted Weighted Average Average Rates Rates on Fixed on Total Fixed Rate Floating Rate % of Rate Debt Year (1) (1) Total Total Debt (1) (1) ------ ----------- ------------- ---------- ------ -------- -------- 2008 $338,298 $10,200 $348,498 3.5% 6.61% 6.54% 2009 458,479 526,129 984,608 10.0% 6.35% 5.08% 2010 (2) 287,526 612,525 900,051 9.1% 7.03% 4.62% 2011 (3) 1,531,880 41,537 1,573,417 16.0% 5.58% 5.50% 2012 907,912 - 907,912 9.2% 6.08% 6.08% 2013 566,310 - 566,310 5.7% 5.93% 5.93% 2014 517,460 - 517,460 5.2% 5.28% 5.28% 2015 355,565 - 355,565 3.6% 6.41% 6.41% 2016 1,089,312 - 1,089,312 11.0% 5.32% 5.32% 2017 803,642 456 804,098 8.2% 6.01% 6.01% 2018+ 1,175,882 646,603 1,822,485 18.5% 5.75% 5.00% ----------- ------------- ---------- ------ -------- -------- Total $8,032,266 $1,837,450 $9,869,716 100.0% 5.85% 5.44% =========== ============= ========== ====== ======== ========

(1) Net of the effect of any derivative instruments. Weighted average rates are as of June 30, 2008.

(2) Includes the Company's $500.0 million floating rate term loan facility, which matures on October 5, 2010, subject to two one-year extension options exercisable by the Company.

(3) Includes $650.0 million of 3.85% convertible unsecured debt with a final maturity of 2026. The notes are callable by the Company on or after August 18, 2011. The notes are putable by the holders on August 18, 2011, August 15, 2016 and August 15, 2021.

EQUITY RESIDENTIAL Unsecured Debt Summary as of June 30, 2008 (Amounts in thousands) Unamortized Coupon Due Face Premium/ Net Rate Date Amount (Discount) Balance --------------------------------------------------------- Fixed Rate Notes: 7.500% 08/15/08 (1) $130,000 $- $130,000 4.750% 06/15/09 (2) 300,000 (263) 299,737 6.950% 03/02/11 300,000 2,462 302,462 6.625% 03/15/12 400,000 (1,089) 398,911 5.500% 10/01/12 350,000 (1,467) 348,533 5.200% 04/01/13 400,000 (562) 399,438 5.250% 09/15/14 500,000 (382) 499,618 6.584% 04/13/15 300,000 (754) 299,246 5.125% 03/15/16 500,000 (412) 499,588 5.375% 08/01/16 400,000 (1,500) 398,500 5.750% 06/15/17 650,000 (4,578) 645,422 7.125% 10/15/17 150,000 (603) 149,397 7.570% 08/15/26 140,000 - 140,000 3.850% 08/15/26 (3) 650,000 (7,380) 642,620 Floating Rate Adjustments (2) (150,000) - (150,000) ----------------------------------- 5,020,000 (16,528) 5,003,472 ----------------------------------- Fixed Rate Tax Exempt Notes: 4.750% 12/15/28 (1) 35,600 - 35,600 5.200% 06/15/29 (1) 75,790 - 75,790 ----------------------------------- 111,390 - 111,390 ----------------------------------- Floating Rate Notes: 06/15/09 (2) 150,000 - 150,000 FAS 133 Adjustments - net (2) 941 - 941 Term Loan Facility 10/05/10 (4) 500,000 - 500,000 ----------------------------------- 650,941 - 650,941 ----------------------------------- Revolving Credit Facility: 02/28/12 (5) - - - ----------------------------------- Total Unsecured Debt $5,782,331 $(16,528) $5,765,803 ===================================

(1) Notes are private. All other unsecured debt is public.

(2) $150.0 million in fair value interest rate swaps converts 50% of the 4.750% Notes due June 15, 2009 to a floating interest rate.

(3) Convertible notes mature on August 15, 2026. The notes are callable by the Company on or after August 18, 2011. The notes are putable by the holders on August 18, 2011, August 15, 2016 and August 15, 2021.

(4) Represents the Company's $500.0 million term loan facility, which matures on October 5, 2010, subject to two one-year extension options exercisable by the Company.

(5) As of June 30, 2008, there was no amount outstanding on the Company's $1.5 billion unsecured revolving credit facility which matures on February 28, 2012.

EQUITY RESIDENTIAL Selected Unsecured Public Debt Covenants June 30, March 31, 2008 2008 ------------- ----------- Total Debt to Adjusted Total Assets (not to exceed 60%) 50.9% 51.3% Secured Debt to Adjusted Total Assets (not to exceed 40%) 21.2% 21.3% Consolidated Income Available for Debt Service to Maximum Annual Service Charges (must be at least 1.5 to 1) 2.21 2.08 Total Unsecured Assets to Unsecured Debt (must be at least 150%) 210.1% 207.2%

These selected covenants relate to ERP Operating Limited Partnership's ("ERPOP") outstanding unsecured public debt. Equity Residential is the general partner of ERPOP.

EQUITY RESIDENTIAL Capital Structure as of June 30, 2008 (Amounts in thousands except for share and per share amounts) Secured Debt $4,103,913 41.6% Unsecured Debt 5,765,803 58.4% ----------- -------- Total Debt 9,869,716 100.0% 46.7% Common Shares 270,927,139 93.8% OP Units 17,798,574 6.2% ----------- -------- Total Shares and OP Units 288,725,7