Investor Presentation MAY 2016 1 340 Fremont San Francisco, CA - PowerPoint PPT Presentation

Investor Presentation MAY 2016 1 340 Fremont – San Francisco, CA Estimated completion in 2016 Investor Presentation May 2016 1

Americans Are Renting at Historic Levels June 24, 2015 June 23, 2015 December 9, 2015 More Americans Are Renting, Baby Boomers Will drive The Number Of Renters Is and Paying More, as Demand for Apartments, U.S. Exploding And It's Not Homeownership Falls Fed Study Shows Because Of Millennials By the Numbers Change in Number of U.S. households Since End Of 2020 ** Average Annual Change In Renter Households * (In Millions) (in thousands) – Owner Occupied – Renter Occupied 900 10 RECESSIONS 8 500 500 6 425 4 325 290 2 0 1960s 1970s 1980s 1990s 2000s 2010-14 -2 2005 2010 2015 2001 *Sources: JCHS tabulations of US Census Bureau, Housing Vacancy Surveys. **Source: US Census Bureau Investor Presentation May 2016 2

Urban Living is on the Rise Reurbanization Driving Rental Demand In Major Metros April 21, 2015 January 27, 2016 Companies Trade Suburbs for City Life Real Estate Investors Ride the Locations deemed ‘walkable’ appreciate more Reurbanization Trend than those that are car-dependent By the Numbers Corporations Looking for Urban Convenience * U.S. Urban Population Continues to Expand ** (Before and After a Corporate Move) (Population in thousands)  Before  After  Urban  Rural 400 350 250 88 79 78 200 66 150 52 51 100 50 0 Walk Score Transit Score Bike Score 1950 1970 1990 2010 2030 2050 *Source: Study from Smart Growth America and Cushman & Wakefield **Source: United Nations Investor Presentation May 2016 3

EQR: Capitalizing on Industry Trends  Founded by Sam Zell Proven Leader in  Over 100 years of combined operating experience Apartment Investing  State-of-the-art operating platform  Portfolio positioned to take advantage of reurbanization trend in high Attractive Portfolio in growth markets  Excellent growth in asset value High Value Markets  Compelling industry fundamentals support long-term growth  Strong asset utilization and attractive cash flows  Proven track record of opportunistic acquisitions, timely dispositions and Disciplined Capital focused development Allocation Strategy  Consistent return to shareholders through regular quarterly dividends and capital appreciation  Conservative balance sheet and superior liquidity through access to Balance Sheet multiple sources of financing Strength  Strong credit ratings and debt metrics with little debt maturing in next two years WELL-POSITIONED TO CREATE LONG-TERM SHAREHOLDER VALUE Investor Presentation May 2016 Investor Presentation May 2016 4 4

Equity Residential Overview Markets as a % of Stabilized NOI  Focused on the acquisition, development and management of high-quality rental 7.8% 1.2% apartment properties in top U.S. growth markets 25.0% 11.3% Southern California  Portfolio of 315 properties consisting of New York 83,551 rental apartment units with a net San Francisco asset value of more than $35 billion Washington DC 17.6% Boston Properties are 96% occupied » Seattle 19.4%  Over 3,900 apartment units under Other development at a total cost of 17.7% approximately $1.97 billion Revenue Normalized Funds from Operations (in billions) (Per Share) $3.48 $2.8 $2.6 $3.17 $2.4 $2.85 $2.76 $2.43 $1.9 $1.8 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Investor Presentation May 2016 5

Proven Strategy  Constructing our Portfolio High costs of homeownership; » Barriers to new apartment supply in the form of land constraints and » government restrictions; Substantial job growth and household formations; and » Attractive lifestyle for residents to live, work and play »  Managing our Portfolio Opportunistic acquisitions and divestitures » Timely development of new projects »  Maintaining efficient operations State-of-the-art operating platform » SEEK TO ACQUIRE AND BUILD APARTMENT PROPERTIES THAT GIVE US THE HIGHEST RISK-ADJUSTED TOTAL RETURNS Investor Presentation May 2016 6

Experienced Leadership Team Sam Zell David Neithercut Mark Parrell Founder & Chairman President & CEO CFO  Founder and Chairman  Senior leader within the  Senior leader within the since initial public company since 1995 company since 1999 offering in 1993 CEO since 2006 CFO since 2007 - -  Over 45 years of  Chair of the Finance CFO from 1995- - experience as a 2004 Committee of NMHC chairman, director, and and is a member of ULI  Director of General executive of companies Growth Properties, Inc.  Director of Brookdale in various industries Senior Living Inc.  Member of the around the world Executive Board of the  Recognized founder of National Association of the modern REIT Real Estate Investment industry Trusts (NAREIT) Barry Altshuler Alan George Alexander Brackenridge David Santee EVP - Investments EVP - CIO EVP - Investments EVP - COO Joined EQR: Joined EQR: Joined EQR: Joined EQR: 1998 1997 1993 1996 OVER 100 YEARS OF COMBINED OPERATING EXPERIENCE Investor Presentation May 2016 7

Attractive Industry Fundamentals  More than 8.3 million new households will be formed from 2015-2019 More than 2.4 million expected to end up in institutional-grade rental apartments »  80 million Echo Boomers driving demand More than 4 million young adults turning 25 every year through the end of the decade » Forming households and creating demand – 60% to 70% propensity to rent »  Job growth improving Unemployment rate of the college educated is 2.6% »  Declining homeownership rate  Homeownership not as economically or socially appealing ~ 8.3M 80M 2.6% New households will be Echo Boomers are Unemployment rate formed from 2015 – 2019 driving housing demand among college educated Investor Presentation May 2016 8

Lifestyle Choices Keeping People Renting Longer Average Marrying Age Male Female 29 28 27 26 25 24 23 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 ABOUT HALF THE U.S. ADULT POPULATION IS SINGLE AND MORE LIKELY TO BE RENTERS Source: Census, Rosen Consulting Investor Presentation May 2016 9

Declining Homeownership Translates Into More Renters Homeownership Rate % of households, 1% = 1.1 million households 70% 69.0% 69% 68% 67% 66% 65% 64.5% 63.5% 64% 64.2% 63.5% 63% 63.3% 62% 1981 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17E Sources: US Census Bureau, Moody’s Analytics & EQR Market Research Investor Presentation May 2016 10

EQR is Strategically Located In Markets With Attractive Housing Dynamics Median Income vs. Median Home Price $917 $1,000 (in thousands) $900 $800 $700 $600 $467 $394 $410 $406 $500 $372 $400 $220 $300 $200 $100 $82 $92 $73 $68 $58 $66 $53 $0 San Francisco Los Angeles New York Boston Washington DC Seattle U.S. Average Price/Income 11.2x 8.1x 6.2x 5.6x 4.3x 5.5x 4.2x Median Income Median Home Price Rental Vacancy Rates 12% (in percent) 10% 8% 6% 4% 2% 0% U.S. Average Seattle Los Angeles San Francisco Washington DC Boston New York 2010 2015 Source: U.S. Census Data Investor Presentation May 2016 11

Compelling Underlying Fundamentals Support Our Long-Term Growth Outlook EQR Core Markets Resident Profile: 20-34 year olds: Median age: Without children: 50+ year olds: 51% 34 78% 21% Average Monthly Rent Median Resident Incomes Median Single Family Homes Prices (in thousands) (in thousands) $2,376 $519 $100 $2,051 $69 $1,218 $53 $220 All U.S. Markets EQR Markets EQR Residents All U.S. Markets EQR Markets All U.S. Markets EQR Markets EQR Residents STRONG DEMOGRAPHICS FOR LONG-TERM INCOME GROWTH AND ASSET APPRECIATION Source: U.S. Census and Company Data Investor Presentation May 2016 12

Attractive Dynamics in EQR Markets Apartment Demand vs. Supply (in thousands) 100 Demand Supply 75 50 25 0 2014 2015 2016 % of Inventory 1.1% 1.2% 0.85% EQR markets include Boston, New York, Washington DC, Southern California, San Francisco and Seattle Source: Moody’s Analytics, Green Street Advisors, MPF, EQR Research Investor Presentation May 2016 13

Prime Locations Relative to Closest Competitors Average Walk Score by Market (Relative ease of completing daily errands w/o a car on a 0-100 scale) AvalonBay Equity Residential Essex UDR 100 EQR 90 80 EQR EQR EQR 70 EQR EQR 60 50 40 30 Boston Los Angeles New York San Francisco Seattle Washington DC EQUITY RESIDENTIAL LOCATIONS ARE HIGHLY WALKABLE AND ADVANTAGEOUSLY POSITIONED COMPARED TO PEERS Source: walkscore.com Investor Presentation May 2016 14

A Foundation of Six Core Markets Seattle Boston 34 Properties / 6,806 Units EQR Pro Forma 24 Properties / 6,415 Units Portfolio Characteristics New York Highest quality, best located 39 Properties / 10,512 Units San Francisco portfolio in the public 45 Properties / 13,202 Units apartment REIT sector Washington, DC Dominant presence in six markets: 47 Properties / 15,634 Units 24/7 gateway cities, Strong demand drivers, Best long term value creation, Operating Southern California efficiencies from asset 91 Properties / 21,915 Units concentration Investor Presentation May 2016 15