Positioned for Performance. j u n e Fine Arts Building Berkeley, CA

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1 Positioned for Performance j u n e 2009 Fine Arts Building Berkeley, CA

2 Trump Place New York, NY 180 Riverside

3 Equity Residential has a portfolio of high-quality assets focused in high-growth markets where very little new multifamily supply is being built. Favorable demographics, the high cost of owning a home in our markets and the decline in homeownership will continue to drive demand. Equity Residential has a strong balance sheet and ample liquidity to meet its financing needs. All of this means that Equity Residential is positioned not only to weather the current economy, but to take advantage of the opportunities that will be created by this market turmoil. 160 Riverside 140 Riverside 3

4 Good long-term demand for rental apartments Favorable demographics and a declining homeownership rate mean positive fundamental demand for apartments. 4 Metro on First Seattle, WA

5 Source: Moody s Economy.com Source: U.S. Census Bureau 2008 and 2009 data is Moody s Economy.com estimate. There are more than 4.5 million more renter households today than there were in 2004 when homeownership peaked at 69%. More than 1.8 million renter households will be created in Homeownership Rate (% of households) 64.2% 69.0% 66.5% 67.8% Declining Homeownership is Creating Renter Households E Total Households Owner Renter 32.2% 33.5% 36.7M 38.5M 67.8% 66.5% 77.2M 76.4M 2008 Estimated 2009 Estimated 5

6 Echo Boomers are a Key Demand Driver for Apartment Rentals The Echo Boomer generation is creating demand for rentals. Nearly four million people turn 18 each year until 2020 and are creating new households. Population Aged (in millions) People aged 20 to 34 have a 60% to 70% propensity to rent. Nearly four million people are turning 18 each year. Source: Green Street Advisors as of 11/14/08 Home Prices Compared to Income While the median price of a home has declined recently, home prices are still high compared to incomes. The decision to buy a home is also being driven by people s ability to qualify for a loan and provide a 20% down payment. Median Home Prices and Median Income (in thousands) $350 $300 $250 $200 Median Home Price Median Income $150 $100 $50 $ Top 79 U.S. Markets as of 9/30/08 Source: Green Street Advisors 11/14/08 6

7 There Have Always Been Single-Family Home Rentals The vast majority of renters choose apartments over single-family homes. Renter Household Breakout (in millions) Source: American Housing Survey, U.S. Census Bureau, EQR Estimates Apartments Single-Family Homes E 09E 7

8 Limited New Apartment Supply There is very little new apartment supply currently being built and almost no new projects will be started in the next several years. As a result, we are very well positioned to reap the benefits of an economic recovery M Washington, D.C. 2400M Washington, D.C.

9 Multifamily Construction Being Held in Check Total Multifamily Starts (units in thousands) Source: Moody s Economy.com Source: U.S. Census Bureau, NMHC and company reports Household Formations Multifamily Permits 1, E Household Formations vs. Multifamily Permits (units in thousands) 1,800 1,600 1,400 1,200 1, E 10E 11E 9 12E

10 Equity Residential has transformed its portfolio. Since 2000, we have sold more than $11 billion of assets and exited secondary markets. We have invested almost $10 billion in high-quality assets in long-term growth markets. Over the last three years we have been a net seller of approximately $1.5 billion of assets. We have used these disposition proceeds to fund development, improve our liquidity and strengthen our balance sheet. Building Value with High-Quality Properties in Major Markets Victor 10 on Venice Los Angeles, CA Victor on Venice Los Angeles, CA

11 Longview Place Waltham, MA 1660 Peachtree Atlanta, GA 71 Broadway New York, NY 11

12 Promenade at Aventura Aventura, FL Vesta, The West End Apartments Boston, MA 12 Gaia Building Berkeley, CA

13 Harbor Steps Seattle, WA 13

14 We have focused our portfolio in markets that will produce better long-term returns. These markets have long-term job growth and household formation that outpace expectations for the national average, and are the places that will attract the Echo Boomer generation as they finish school and head into the workplace. They are also markets in which the high cost of housing makes renting a very attractive option. Equity Residential is Focused on Higher Growth Markets 14 The Reserve at Potomac Yard Alexandria, VA

15 Equity Residential Portfolio Percent of Budgeted NOI 4-7% 7-10% 10% + Based on 2009 Budgeted NOI. 91% of total NOI. Median Income vs. Median Home Price Per Market (in thousands) $632 $500 $400 $300 $396 $305 $262 $302 $352 $340 Median Home Price Median Income $200 Source: Claritas, Moody s Economy.com $100 0 % of EQR 2009 NOI $ % New York $77 $70 $47 $54 $59 $65 8.8% D.C. N. Virginia 8.4% South Florida 7.8% Los Angeles 7.5% Seattle 6.5% San Francisco Bay Area 6.4% Boston 15

16 Equity Residential is Focused on Operations In this challenging economy, Equity Residential will focus on retaining current residents and driving qualified prospects to our properties. We are continuing our successful track record of controlling operating and administrative expenses. We have a seasoned management team that has managed through downturns before, we have a state-of-the-art operating platform for pricing, procurement, and property management and we have a terrific collection of assets in the markets we believe will provide the best returns in the long-term. 16 The West End Apartments Boston, MA The West End Apartments Boston, MA

17 First Quarter 2009 Same-Store Performance Market Units 1Q 2009 % of Actual NOI 1Q 2009 Avg. Rental Rate1 Change in Revenues New York Metro Area 6, % $2, % South Florida 11, % 1,287 (1.5%) D.C./ Northern Virginia 7, % 1, % Los Angeles 6, % 1, % Seattle/Tacoma 8, % 1, % San Francisco Bay Area 6, % 1, % Boston 5, % 1, % Phoenix 10, % 886 (6.2%) Denver 8, % 1, % San Diego 4, % 1, % Orlando 7, % 1,004 (4.4%) Atlanta 7, % 981 (0.3%) Inland Empire, CA 4, % 1,349 (0.1%) Orange County, CA 3, % 1, % Suburban Maryland 3, % 1, % New England (excluding Boston) 4, % 1,088 (0.9%) Portland, OR 3, % % Jacksonville 3, % 885 (4.9%) Tampa 2, % 951 (2.4%) Raleigh/Durham 2, % 826 (0.2%) Top 20 Markets 119, % 1,352 (0.2%) All Other Markets 3, % 1, % Total 123, % $1,341 (0.2%) 1 Average rental rate is defined as total rental revenues divided by the weighted average occupied units for the period. 17

18 Equity Residential has a Solid Balance Sheet and Sufficient Liquidity to Meet its Capital Requirements 18 Reunion at Redmond Ridge Redmond, WA

19 Reserve at Town Center Potomac Falls, VA Equity Residential is rated Baa1 by Moody s, BBB+ by S&P, and A- by Fitch. EQR covers its fixed charges more than 2.3x and has a 51% leverage ratio. The company, while modestly leveraged, Reserve has been at Town lowering Center debt Potomac levels through Falls, VA asset sales financed by plentiful GSE debt capital. We maintain strong liquidity with access to multiple sources of financing: Fannie Mae and Freddie Mac (the GSEs), life companies and unsecured debt markets. We have been, and will continue to be, pro-active in addressing our maturities and development fundings. In 2008, we borrowed $1.6 billion from the GSEs at 6% to pre-fund our financing needs through 2010 and into We have a large unsecured pool of assets giving us $3 billion of additional secured borrowing capacity. We have unrestricted cash on hand of approximately $611 million. We have an undrawn $1.3 billion unsecured line of credit, with a 25- bank syndicate, that does not mature until ARTech Building Berkeley, CA ARTech Building Berkeley, CA 19

20 Our Development Capability is a Source of Attractively Priced Assets in High-Growth Markets Our development activity is modest in size and is fully funded. In this current economy, we do not plan on starting new development projects in Greene Jersey City, NJ 70 Greene Jersey City, NJ

21 Development Markets We currently have approximately $1.16 billion of projects under development: $467 million to be completed in 2009; $437 million to be completed in 2010; $255 million to be completed in Of the approximately $397 million of capital cost remaining to be funded on these projects, approximately $278 million will be funded by fully committed third-party bank loans and the remaining $119 million will be funded by EQR from cash on hand. Seattle Southern California New York Washington, D.C. South Florida $1.16 B of Projects Under Development $397 M of Capital Cost Funding Remaining (in millions) $750 $500 $467 $437 $119M $250 $255 $278M $ $1.16 billion total Funded by fully committed third-party bank loans Funded by Equity Residential from cash on hand 21

22 Equity Residential is Positioned to Create Shareholder Value Delivering Growth in FFO and Dividends (per share) Per Share FFO Dividend $2.39 $2.27 $2.18 $2.00-$2.30* $1.87 $1.93 $1.93 $ * Estimated range. Company guidance from 1Q 2009 Earnings Release dated 4/29/09 22

23 We have a well-located portfolio of high-quality assets in high-growth markets that will benefit from the downturn in homeownership and favorable demographics. We utilize a state-of-the-art operating platform that allows us to adapt quickly and aggressively manage our assets. We have a solid balance sheet and sufficient liquidity to weather the current turmoil in the economy and the financial markets. Equity Residential is positioned to create value for its shareholders. View from Harbor Steps Seattle, WA 23

24 Equity Residential is an S&P 500 company focused on the acquisition, development and management of high-quality apartment properties in top U.S. growth markets. Equity Residential owns or has investments in 537 properties consisting of 146,232 apartment units. Equity Residential Two North Riverside Plaza Chicago, Illinois EquityResidential.com f r o m l e f t t o r i g h t : The Pier Jersey City, NJ; Carlyle Mill Alexandria, VA; Sabal Palm at Boot Ranch Palm Harbor, FL; Olympus Seattle, WA; Legacy Park Concord, CA Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: The forward-looking statements contained in this document are subject to certain economic risks and uncertainties described under the heading Risk Factors in the company s 2008 Annual Report on Form 10-K. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. All projections are based on 2009 budgets and proforma expectations on recent acquisitions.