10.
Earnings Per Share and Earnings Per Unit

Equity Residential

The following tables set forth the computation of net income per share – basic and net income per share – diluted for the Company (amounts in thousands except per share amounts):

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Numerator for net income per share – basic:

 

 

 

 

 

 

 

 

 

Net income

 

$

1,151,949

 

 

$

1,070,975

 

 

$

868,488

 

Allocation to Noncontrolling Interests – Operating Partnership

 

 

(27,405

)

 

 

(28,932

)

 

 

(26,710

)

Net (income) loss attributable to Noncontrolling
   Interests – Partially Owned Properties

 

 

(4,455

)

 

 

(6,212

)

 

 

(6,340

)

Preferred distributions

 

 

(1,422

)

 

 

(1,613

)

 

 

(3,090

)

Premium on redemption of Preferred Shares

 

 

 

 

 

(1,444

)

 

 

 

Numerator for net income per share – basic

 

$

1,118,667

 

 

$

1,032,774

 

 

$

832,348

 

Numerator for net income per share – diluted:

 

 

 

 

 

 

 

 

 

Net income

 

$

1,151,949

 

 

$

1,070,975

 

 

$

868,488

 

Net (income) loss attributable to Noncontrolling
   Interests – Partially Owned Properties

 

 

(4,455

)

 

 

(6,212

)

 

 

(6,340

)

Preferred distributions

 

 

(1,422

)

 

 

(1,613

)

 

 

(3,090

)

Premium on redemption of Preferred Shares

 

 

 

 

 

(1,444

)

 

 

 

Numerator for net income per share – diluted

 

$

1,146,072

 

 

$

1,061,706

 

 

$

859,058

 

Denominator for net income per share – basic and diluted:

 

 

 

 

 

 

 

 

 

Denominator for net income per share – basic

 

 

379,610

 

 

 

378,795

 

 

 

378,773

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

OP Units

 

 

9,491

 

 

 

10,630

 

 

 

11,181

 

Long-term compensation shares/units

 

 

1,310

 

 

 

1,315

 

 

 

943

 

Denominator for net income per share – diluted

 

 

390,411

 

 

 

390,740

 

 

 

390,897

 

Net income per share – basic

 

$

2.95

 

 

$

2.73

 

 

$

2.20

 

Net income per share – diluted

 

$

2.94

 

 

$

2.72

 

 

$

2.20

 

ERP Operating Limited Partnership

The following tables set forth the computation of net income per Unit – basic and net income per Unit – diluted for the Operating Partnership (amounts in thousands except per Unit amounts):

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Numerator for net income per Unit – basic and diluted:

 

 

 

 

 

 

 

 

 

Net income

 

$

1,151,949

 

 

$

1,070,975

 

 

$

868,488

 

Net (income) loss attributable to Noncontrolling
   Interests – Partially Owned Properties

 

 

(4,455

)

 

 

(6,212

)

 

 

(6,340

)

Allocation to Preference Units

 

 

(1,422

)

 

 

(1,613

)

 

 

(3,090

)

Allocation to premium on redemption of Preference Units

 

 

 

 

 

(1,444

)

 

 

 

Numerator for net income per Unit – basic and diluted

 

$

1,146,072

 

 

$

1,061,706

 

 

$

859,058

 

Denominator for net income per Unit – basic and diluted:

 

 

 

 

 

 

 

 

 

Denominator for net income per Unit – basic

 

 

389,101

 

 

 

389,425

 

 

 

389,954

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

Dilution for Units issuable upon assumed exercise/vesting
   of the Company’s long-term compensation shares/units

 

 

1,310

 

 

 

1,315

 

 

 

943

 

Denominator for net income per Unit – diluted

 

 

390,411

 

 

 

390,740

 

 

 

390,897

 

Net income per Unit – basic

 

$

2.95

 

 

$

2.73

 

 

$

2.20

 

Net income per Unit – diluted

 

$

2.94

 

 

$

2.72

 

 

$

2.20

 

 

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 13, 2025
2023Feb 15, 2024
2022Feb 16, 2023
2021Feb 17, 2022
2020Feb 18, 2021
2019Feb 20, 2020
2018Feb 21, 2019
2017Feb 22, 2018
2016Feb 23, 2017
2015Feb 25, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.