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CHICAGO-After being a net buyer in 2005 to the tune of $1.1 billion, Equity Residential expects to balance sales and acquisitions at $1.5 billion on both sides. The multifamily REIT bought 12,059 rental units in 41 deals totaling $2.5 billion last year while selling 12,848 units in 50 properties for $1.4 billion, exceeding its goals on both counts.

However, Equity Residential's best money-maker continues to be sales of its own rental units converted to condominiums. The REIT sold 2,241 units, 21% more than its 2005 target, for $593.3 million. More importantly, that resulted in a $100-million funds from operations gain, double the REIT's expectation for the year.

"It's been a terrific way for us to create value," said president and chief executive officer David J. Neithercut in his company's earnings conference call Wednesday morning. Meanwhile, the appetite for properties that can be converted to condominiums has helped fuel the REIT's asset sales, which totaled $1.4 billion alone in the fourth quarter at an average capitalization rate of 4.7%. "We've taken advantage of the opportunity to sell assets to converters," he adds.