Equity Residential Reports 3Q Profit Dive

Equity Residential, Chicago, has reported net income of $56.4 million ($0.19 per share) for the third quarter, a major falloff from $250.2 million ($0.87 per share) for the third quarter of 2005.The company, the largest multifamily real estate investment trust by market capitalization, attributed the decline primarily to higher gains on the sales of properties in the third quarter of 2005. The REIT is revising downward its outlook for funds from operations, an alternative earnings measure used in the REIT world, from the current range of $2.30-$2.50 per share to $2.32-$2.35 per share, mainly as a result of "slightly higher-than-expected debt prepayment costs from the sale of Lexford as well as a lower-than-expected contribution from our condominium business." Equity Residential completed the sale of its Lexford Housing division last month. The company can be found online at http://www.equityapartments.com.