EQUITY RESIDENTIAL Segments Disclosure
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:
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 |
|
|
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 |
|
|
Operating |
|
|
NOI |
|
|
Rental |
|
|
Operating |
|
|
NOI |
|
|
Rental |
|
|
Operating |
|
|
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 |
|
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 |
|
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 |
|
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 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.