16.
Reportable Segments

Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses and about which discrete financial information is available that is evaluated regularly by the chief operating decision maker. The chief operating decision maker, who is the Company’s chief executive officer, decides how resources are allocated and assesses performance on a recurring basis at least quarterly.

The Company’s primary business is the acquisition, development and management of multifamily residential properties, which includes the generation of rental and other related income through the leasing of apartment units to residents. The chief operating decision maker evaluates the Company’s operating performance of our apartment communities geographically by market on a same store basis and in total on a non-same store basis, which represent our operating segments.

The Company has aggregated its geographic same store operating segments into one reportable segment called same store. Management believes the properties in the same store reportable segment have similar economic characteristics, facilities, services and residents, which is in alignment with the required aggregation criteria. The following reflects the two reportable segments for the Company:

Same store primarily includes all properties acquired or completed that were stabilized (defined as having achieved 90% physical occupancy for three consecutive months) for all of the current and comparable periods presented.
Non-same store primarily includes all properties acquired during the current and prior year, any properties in lease-up and not stabilized for all of the current and comparable periods presented and any properties undergoing major renovations.

The Company has non-residential activities included in each of its reportable segments, which account for less than 4.0% of total revenues for the years ended December 31, 2025, 2024 and 2023, respectively, and serve as an amenity for our residential residents. All

revenues are from external customers and there is no customer who contributed 10% or more of the Company’s total revenues during the years ended December 31, 2025, 2024 and 2023, respectively.

The primary financial measure for the Company’s reportable segments is net operating income (“NOI”), which represents rental income less: 1) property and maintenance expense and 2) real estate taxes and insurance expense (all as reflected in the accompanying consolidated statements of operations and comprehensive income). The Company believes that NOI is helpful to investors as a supplemental measure of its operating performance because it is a direct measure of the actual operating results of the Company’s apartment properties. Revenues for all leases are reflected on a straight-line basis in accordance with GAAP for the current and comparable periods.

The following table presents a reconciliation of net income per the consolidated statements of operations to NOI for the years ended December 31, 2025, 2024 and 2023, respectively (amounts in thousands):

 

 

December 31, 2025

 

 

December 31, 2024

 

 

December 31, 2023

 

Net income

 

$

1,151,949

 

 

$

1,070,975

 

 

$

868,488

 

Adjustments:

 

 

 

 

 

 

 

 

 

Property management

 

 

133,369

 

 

 

132,739

 

 

 

119,804

 

General and administrative

 

 

65,280

 

 

 

61,653

 

 

 

60,716

 

Depreciation

 

 

1,010,400

 

 

 

952,191

 

 

 

888,709

 

Net (gain) loss on sales of real estate properties

 

 

(626,388

)

 

 

(546,797

)

 

 

(282,539

)

Interest and other income

 

 

(52,440

)

 

 

(30,329

)

 

 

(22,345

)

Other expenses

 

 

60,485

 

 

 

74,051

 

 

 

29,419

 

Interest:

 

 

 

 

 

 

 

 

 

Expense incurred, net

 

 

306,798

 

 

 

285,735

 

 

 

269,556

 

Amortization of deferred financing costs

 

 

8,768

 

 

 

7,834

 

 

 

8,941

 

Income and other tax expense (benefit)

 

 

1,585

 

 

 

1,256

 

 

 

1,148

 

(Income) loss from investments in
   unconsolidated entities

 

 

18,915

 

 

 

8,974

 

 

 

5,378

 

Net (gain) loss on sales of land parcels

 

 

80

 

 

 

 

 

 

 

Total NOI

 

$

2,078,801

 

 

$

2,018,282

 

 

$

1,947,275

 

 

The following table presents NOI from our rental real estate for the years ended December 31, 2025, 2024 and 2023, respectively (amounts in thousands):

 

 

December 31, 2025

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

Rental
Income

 

 

Operating
Expenses

 

 

NOI

 

 

Rental
Income

 

 

Operating
Expenses

 

 

NOI

 

 

Rental
Income

 

 

Operating
Expenses

 

 

NOI

 

Same store (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

$

477,301

 

 

$

150,575

 

 

$

326,726

 

 

$

469,845

 

 

$

144,606

 

 

$

325,239

 

 

$

466,980

 

 

$

143,983

 

 

$

322,997

 

Orange County

 

 

128,458

 

 

 

28,766

 

 

 

99,692

 

 

 

125,214

 

 

 

28,208

 

 

 

97,006

 

 

 

121,113

 

 

 

26,759

 

 

 

94,354

 

San Diego

 

 

85,299

 

 

 

18,735

 

 

 

66,564

 

 

 

83,039

 

 

 

17,557

 

 

 

65,482

 

 

 

92,847

 

 

 

20,794

 

 

 

72,053

 

Subtotal - Southern California

 

 

691,058

 

 

 

198,076

 

 

 

492,982

 

 

 

678,098

 

 

 

190,371

 

 

 

487,727

 

 

 

680,940

 

 

 

191,536

 

 

 

489,404

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

452,198

 

 

 

134,039

 

 

 

318,159

 

 

 

431,323

 

 

 

129,084

 

 

 

302,239

 

 

 

424,547

 

 

 

128,742

 

 

 

295,805

 

Washington, D.C.

 

 

443,191

 

 

 

141,556

 

 

 

301,635

 

 

 

428,174

 

 

 

134,613

 

 

 

293,561

 

 

 

419,628

 

 

 

132,610

 

 

 

287,018

 

New York

 

 

496,237

 

 

 

203,978

 

 

 

292,259

 

 

 

476,960

 

 

 

198,118

 

 

 

278,842

 

 

 

476,319

 

 

 

193,311

 

 

 

283,008

 

Boston

 

 

317,238

 

 

 

95,837

 

 

 

221,401

 

 

 

314,488

 

 

 

90,462

 

 

 

224,026

 

 

 

314,929

 

 

 

91,977

 

 

 

222,952

 

Seattle

 

 

268,158

 

 

 

75,516

 

 

 

192,642

 

 

 

260,875

 

 

 

73,832

 

 

 

187,043

 

 

 

278,170

 

 

 

78,418

 

 

 

199,752

 

Denver

 

 

75,661

 

 

 

23,327

 

 

 

52,334

 

 

 

78,830

 

 

 

23,797

 

 

 

55,033

 

 

 

71,067

 

 

 

21,328

 

 

 

49,739

 

Other Expansion Markets

 

 

78,063

 

 

 

32,558

 

 

 

45,505

 

 

 

80,606

 

 

 

32,522

 

 

 

48,084

 

 

 

74,593

 

 

 

31,713

 

 

 

42,880

 

Total same store

 

 

2,821,804

 

 

 

904,887

 

 

 

1,916,917

 

 

 

2,749,354

 

 

 

872,799

 

 

 

1,876,555

 

 

 

2,740,193

 

 

 

869,635

 

 

 

1,870,558

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-same store

 

 

211,031

 

 

 

76,539

 

 

 

134,492

 

 

 

85,538

 

 

 

32,049

 

 

 

53,489

 

 

 

35,474

 

 

 

15,117

 

 

 

20,357

 

Total reportable segments

 

 

3,032,835

 

 

 

981,426

 

 

 

2,051,409

 

 

 

2,834,892

 

 

 

904,848

 

 

 

1,930,044

 

 

 

2,775,667

 

 

 

884,752

 

 

 

1,890,915

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (2)

 

 

61,124

 

 

 

33,732

 

 

 

27,392

 

 

 

145,216

 

 

 

56,978

 

 

 

88,238

 

 

 

98,297

 

 

 

41,937

 

 

 

56,360

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Totals

 

$

3,093,959

 

 

$

1,015,158

 

 

$

2,078,801

 

 

$

2,980,108

 

 

$

961,826

 

 

$

2,018,282

 

 

$

2,873,964

 

 

$

926,689

 

 

$

1,947,275

 

(1)
For the years ended December 31, 2025 and 2024, same store represented 73,465 apartment units. For the year ended December 31, 2023, same store represented 75,299 apartment units.
(2)
Other includes development, other corporate operations and operations prior to disposition for properties sold.

 

The following table presents a reconciliation of operating expenses for each reportable segment for the years ended December 31, 2025, 2024 and 2023, respectively (amounts in thousands):

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

Same Store (1)

 

 

Non-Same Store

 

 

Total

 

 

Same Store (1)

 

 

Non-Same Store

 

 

Total

 

 

Same Store (1)

 

 

Non-Same Store

 

 

Total

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate taxes

 

$

366,792

 

 

$

27,018

 

 

$

393,810

 

 

$

358,681

 

 

$

10,745

 

 

$

369,426

 

 

$

356,847

 

 

$

3,929

 

 

$

360,776

 

On-site payroll

 

 

166,131

 

 

 

14,958

 

 

 

181,089

 

 

 

164,029

 

 

 

6,379

 

 

 

170,408

 

 

 

167,486

 

 

 

3,189

 

 

 

170,675

 

Utilities

 

 

146,950

 

 

 

11,972

 

 

 

158,922

 

 

 

135,688

 

 

 

4,972

 

 

 

140,660

 

 

 

135,721

 

 

 

2,664

 

 

 

138,385

 

Repairs and maintenance

 

 

121,764

 

 

 

13,317

 

 

 

135,081

 

 

 

115,599

 

 

 

4,721

 

 

 

120,320

 

 

 

116,529

 

 

 

1,961

 

 

 

118,490

 

Other (2)

 

 

103,250

 

 

 

9,274

 

 

 

112,524

 

 

 

98,802

 

 

 

5,232

 

 

 

104,034

 

 

 

93,052

 

 

 

3,374

 

 

 

96,426

 

Total

 

$

904,887

 

 

$

76,539

 

 

$

981,426

 

 

$

872,799

 

 

$

32,049

 

 

$

904,848

 

 

$

869,635

 

 

$

15,117

 

 

$

884,752

 

 

(1)
For the years ended December 31, 2025 and 2024, same store represented 73,465 apartment units. For the year ended December 31, 2023, same store represented 75,299 apartment units.
(2)
Other operating expenses for each reportable segment includes insurance, leasing and advertising and other on-site operating expenses.

 

 

The following table presents a reconciliation of total assets and capital expenditures as of and for the years ended December 31, 2025 and 2024, respectively (amounts in thousands):

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

Same Store (1)

 

 

Non-Same Store

 

 

Other (2)

 

 

Total

 

 

Same Store (1)

 

 

Non-Same Store

 

 

Other (2)

 

 

Total

 

Total assets

 

$

16,790,342

 

 

$

3,069,901

 

 

$

885,780

 

 

$

20,746,023

 

 

$

17,330,037

 

 

$

2,372,163

 

 

$

1,131,976

 

 

$

20,834,176

 

Capital expenditures

 

$

289,916

 

 

$

48,501

 

 

$

3,623

 

 

$

342,040

 

 

$

269,968

 

 

$

21,338

 

 

$

10,128

 

 

$

301,434

 

(1)
For the years ended December 31, 2025 and 2024, same store represented 73,465 apartment units.
(2)
Other includes development, other corporate operations and capital expenditures for properties sold.
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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

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.