Equity Residential Closes $543 Million Secured Loan

Business Wire, Dec 23, 2008

Company Has $2.33 Billion in Liquidity to Meet Debt and Development Funding Needs into 2011

CHICAGO -- Equity Residential (NYSE: EQR) today announced that the company closed a $543 million secured loan with Fannie Mae (NYSE: FNM), which was originated by Wells Fargo (NYSE: WFC). The loan is interest only and matures in eight years with the first seven years fixed and the final year at a floating rate of interest. The loan, which is collateralized with nineteen assets, has an all-in effective cost to the company of approximately 6%. The company currently has approximately $1.0 billion of unrestricted cash, inclusive of these loan proceeds, and approximately $1.33 billion available on its unsecured revolving credit facility. This loan is a continuation of the company's strategy to proactively address its debt maturities and development funding needs. The company now has sufficient liquidity, between its line of credit and cash on hand, to meet these needs well into 2011.

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 552 properties totaling 148,115 units in 23 states and the District of Columbia. For more information on Equity Residential, please visit our website at www.equityresidential.com.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential's management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, competition and local government regulation. Other risks and uncertainties are described under the heading "Risk Factors" in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityresidential.com. Many of these uncertainties and risks are difficult to predict and beyond management's control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.