So far this year, sales and acquisitions of rental units balance out at $1.1 billion each. However, the sales of 10,212 units have been at a 5% cap rate, while the purchases of 7,168 units have averaged out to a 5.6% cap rate. In addition, though, condominium sales have totaled 1,589 units for $428.1 million. While the third-quarter acquisitions included properties averaging six years in age, the sales involved properties averaging 28 years.

The condo sales include a 248-unit property in Coconut Creek, FL that Equity Residential intended to convert itself, Neithercut noted, before the company received an unsolicited bid from a converter. The $45.9-million bid was accepted because it included 50% of the potential profit of converting Riviera Palms without any financial risk, he explained.

Condominium sales contributed $27.8 million to the company's funds from operations during the third quarter, chief financial officer Donna Brandin reported during the call, compared to $7 million during the same three months in 2004. Condominium sales already have contributed $56 million to funds from operations during the first nine months of 2005, surpassing the budget for the entire year, Neithercut said, and will likely hit $72 million by the end of the year.

Neithercut noted the company will lose a joint venture partner next year, which could reduce condominium sale profits. "We'll have to work hard to get back to that level," he said during the company's earnings conference call.