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Equity Residential Calls Series E Preferred Shares and Series H Preferred Shares for Redemption

^{Published on 2010-09-28 14:05:20 - Market Wire}
 

CHICAGO--([ BUSINESS WIRE ])--Equity Residential (NYSE: EQR) today announced that it has called its Series E Preferred Shares and Series H Preferred Shares for redemption.

The redemption of these shares will have no effect on the companya™s 2010 or future funds from operations. The liquidation value of the Series E and H Preferred Shares outstanding at September 27, 2010 totaled approximately $8.7 million.

Series E Preferred Share Redemption

The company has called for redemption, on November 1, 2010, all of its outstanding Series E Cumulative Convertible Preferred Shares of Beneficial Interest. The Series E Preferred Shares will be redeemed at a price of $25.00 per share, plus $0.1556 per share, representing dividends for the period from October 1, 2010 through November 1, 2010. As of the close of business on September 27, 2010, there were 323,666 shares of Series E Preferred Shares outstanding.

From the redemption date forward, dividends will no longer accrue and holders will have no rights other than the right to receive the redemption price, without interest, upon surrender of the Series E Shares. Payment of the redemption price will be made only upon presentation and surrender of certificates representing the Series E Shares to Computershare Inc., the redemption agent, during its business hours at the address specified in the Notice of Redemption.

The Series E Shares remain convertible in accordance with their terms at any time prior to the close of business on October 29, 2010. Each Series E Share is convertible into 1.1128 common shares of the company. Computershare Inc. is the conversion agent, located at the address specified in the Notice of Redemption.

The Notice of Redemption and related materials will be mailed to holders of the Series E Shares no later than Friday, October 1, 2010.

Series H Preferred Share Redemption

The company has called for redemption, on November 1, 2010, all of its outstanding Series H Cumulative Convertible Preferred Shares of Beneficial Interest. Each Series H Preferred Share will be redeemed for 1.448 common shares of the company plus cash (to the nearest cent) in lieu of any fractional shares based on the closing market price of the companya™s common shares on the trading day immediately preceding the redemption date. As of the close of business on September 27, 2010, there were 22,459 shares of Series H Preferred Shares outstanding.

From the last dividend payment date preceding the date of redemption through the date of redemption, the company will not make payment or allowance for any unpaid dividends on Series H Shares called for redemption or on the common shares issued upon redemption. From the redemption date forward, dividends will no longer accrue and holders will have no rights other than the right to receive the redemption price upon surrender of the Series H Shares. Holders of Series H Shares who receive common shares of the company pursuant to the redemption and hold such common shares through the record date for the next quarterly distribution will receive the full quarterly distribution payable on such common shares for such period. Payment of the redemption price will be made only upon presentation and surrender of certificates representing the Series H Shares to Computershare Inc., the redemption agent, during its business hours at the address specified in the Notice of Redemption.

The Series H Shares remain convertible in accordance with their terms at any time prior to the close of business on November 1, 2010. Each Series H Share is convertible into 1.448 common shares of the company. Computershare Inc. is the conversion agent, located at the address specified in the Notice of Redemption.

The Notice of Redemption and related materials will be mailed to holders of the Series H Shares no later than Friday, October 1, 2010.

Forward-Looking Statements

The forward-looking statements contained in this news release are subject to certain risks and uncertainties including, without limitation, the risks described under the heading aRisk Factorsa in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) and available on our website, [ www.equityapartments.com ]. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

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 479 properties totaling 134,484 units in 21 states and the District of Columbia. For more information on Equity Residential, please visit our website at [ www.equityapartments.com ].