Equity Residential To Reduce Projects, Take $115 Million Charge

   DOW JONES NEWSWIRES 
 

Equity Residential (EQR) said it will reduce the number of projects it will undertake, resulting in a related fourth-quarter charge of about $115 million, or 39 cents a share.

Chief Executive David J. Neithercut said Equity Residential won't start any new projects "until capital markets and the economy show signs of improvement."

The charge reflects impairments in the value of land the apartment developer held for five development projects that the real estate investment trust no longer plans to pursue. The charge doesn't affect compliance with financial or debt covenants.

After this charge, Equity Residential will have land held for development of about $250 million, representing about 1.5% of the company's total assets.

The company plans to complete the 10 apartment properties it has under construction, but has cut development staff and may make other cuts.

Equity Residential's shares closed down 4.1% at $25.82 on Friday and were unchanged in after-hours trading.

-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975; [e-mail]

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