UPDATE 2-Equity Residential 3rd-quarter FFO beats Wall St

* Q3 FFO share 53 cents vs Wall St's 52 cents

* Sees 2009 FFO $2.18 to $2.22

(Adds details on asset sales; updates shares)

NEW YORK, Oct 28 (Reuters) - Equity Residential (EQR.N), the largest publicly traded apartment landlords, reported quarterly funds from operations that beat Wall Street estimates.

The real estate investment fund (REIT) posted third-quarter FFO of $154.4 million, or 53 cents per share, down from $186.6 million, or 64 cents per share, a year ago.

Analysts expected 52 cents per share, according to Thomson Reuters I/B/E/S. FFO, a key performance measure for REITs, excludes the profit-reducing effect of depreciation.

Chicago-based Equity Residential, whose chairman is real estate mogul Sam Zell, raised its estimate of full-year FFO, in part citing a smaller-than-expected increase in expenses. It now expects 2009 FFO of $2.18 to $2.22 a share, up from $2.10 to $2.20 per share.

For the 119,000 units the company has operated at least a year, net operating income fell 5.8 percent as rents and occupancy fell faster than expenses.

The company owns or has investments in 501 properties in 23 states and the District of Columbia. It sold more than 4,600 apartments during the quarter for $381 million, part of an ongoing effort to sell non-core properties in secondary markets. It said it got good prices for such properties.

The company reported after the closing bell. In regular trading, its shares fell 4.1 percent to $27.56. (Reporting by Nick Zieminski; editing by Andre Grenon)