Type of apartment properties
Equity Residential (EQR) has three main business segments—garden, mid-rise or high-rise, and military housing. The garden-styled properties are generally properties with two or three-storey buildings. The mid-rise or high-rise properties are generally properties with more than three-storey buildings.
The garden-styled and mid-rise or high-rise property types typically provide residents with amenities like a clubhouse and swimming pool. Some of these properties offer additional amenities like saunas, whirlpools, spas, sports courts, and exercise rooms. The military housing properties are located on military bases.
As of December 2014, Equity Residential directly or indirectly, through investments in title holding entities, owned all or a portion of 391 properties located throughout the US consisting of 109,225 apartment units. The number of properties fell from 451 in 2010 to 388 as of June 2015. The number of apartment units also fell from 129,604 in 2010 to 108,430 during the same period.
Out of 391 properties—109,225 apartment units—in 2014, Equity Residential has 364 wholly owned properties—98,287 apartment units—while military housing has two properties with 5,033 apartment units.
Apart from Equity Residential, other major players in the apartment REIT space like AvalonBay Communities (AVB), Essex Property Trust (ESS), and UDR (UDR) are also focused on major metropolitan markets in the US. Equity Residential forms 8.16% of the Vanguard REIT ETF (VNQ).
Equity Residential’s resident leases are generally 12 months in length. They can require security deposits from the tenants. The company’s properties had an average occupancy rate of 95.10% at the end of fiscal 2014—compared to 93.80% in 2013.
In the next part of this series, we’ll discuss Equity Residential’s geographic coverage.