Company Overview - Equity Residential (NYSE: EQR) is a Real Estate Investment Trust (REIT) that specializes in residential apartment buildings across the United States [1] - The company primarily focuses on areas with specific characteristics for its apartment locations, which can be categorized into two distinct groups [1] Investment Strategy - The company emphasizes diversification not only in assets but also in investment methods and philosophies to meet both short-term and long-term goals [1] - It operates separate portfolios for different investment objectives, including income plays, growth stocks, and options strategies [1] Options Strategies - The company employs various options strategies such as covered calls, iron condors, butterflies, calendar spreads, and call-put spreads [1] - It aims to benefit from the lack of movement in stocks or funds through delta-neutral options plays [1]

Q4 2024 Management Presentation FEBRUARY 2025 LYRIC SUGAR HILL – SUGAR HILL, GA STILLHOUSE VININGS | ATLANTA, GA This presentation is complementary to the Company's conference call to discuss its Fourth Quarter 2024 earnings on February 4, 2025 and should be read in conjunction with the Company's earnings release dated February 3, 2025. See the Appendix on pages 9 through 14 for information about forward-looking statements, a glossary of defined terms and a related reconciliation of non-GAAP financial measu ...

Core Viewpoint - Equity Residential (EQR) reported a 2.9% increase in shares after announcing fourth-quarter 2024 normalized funds from operations (FFO) per share of $1.00, aligning with expectations, and rental income of $766.8 million, exceeding estimates by 1.24% [1][2] Financial Performance - For full-year 2024, normalized FFO per share was $3.89, meeting estimates and showing an increase from $3.78 in the previous year, supported by a 3.7% rise in rental income to $2.98 billion [3] - Same-store revenues increased by 2.4% year-over-year, while same-store expenses rose by 4.3%, leading to a 1.6% growth in same-store net operating income (NOI) [4] - The average rental rate for the quarter ended December was $3,147, reflecting a 2.2% year-over-year increase, with physical occupancy improving by 30 basis points to 96.1% [4] Portfolio Activity - In Q4, Equity Residential acquired three properties with 795 units for $274.3 million and sold seven properties with 1,629 units for $610.1 million [6] Balance Sheet - At the end of Q4 2024, the company had cash and cash equivalents of $62.3 million, up from $28.6 million at the end of Q3 2024, with a net debt to normalized EBITDAre ratio of 4.38X, down from 4.56X [7] 2025 Guidance - For full-year 2025, EQR projects normalized FFO per share between $3.90 and $4.00, with same-store revenue growth expected at 2.25-3.25% and expenses increasing by 3.5-4.5% [9] - The company anticipates physical occupancy to be around 96.2% for 2025 [9] - For Q1 2025, normalized FFO per share is projected to be between 90 and 94 cents [10]

Core Viewpoint - Equity Residential reported strong fourth-quarter results, with significant earnings and revenue growth, highlighting its robust operational foundation amid economic uncertainties [2][6]. Financial Performance - The company achieved an EPS of $1.10, exceeding analysts' expectations of $0.41, and reflecting a 34.1% increase from $0.82 in Q4 2023 [3][6]. - Revenue reached $766.8 million, a 5.4% increase from $727.5 million in the previous year, surpassing the forecast of $756 million [3][6]. - Normalized FFO per share remained stable at $1.00, with physical occupancy at 96.1%, up from 95.8% year over year [3][8]. Business Overview and Strategy - Equity Residential specializes in multifamily residential properties, focusing on high-demand urban and suburban markets such as Boston, New York, Washington D.C., and Los Angeles [4]. - The company emphasizes portfolio optimization by acquiring newer assets and disposing of older properties, maintaining a modern property base [5]. - In 2024, Equity Residential acquired 18 new properties, adding 5,373 rental units, which supports its growth strategy [5]. Market Position and Developments - The company maintained resilience against economic headwinds, with effective cost management and strategic property acquisitions driving revenue growth [6]. - Equity Residential expanded into major growth markets like Atlanta and Denver, enhancing its geographical diversification and balancing growth [7]. - The company reported stable occupancy rates and effective tenant retention strategies, despite challenges in oversupplied markets [8]. Sustainability and Future Outlook - Equity Residential was added to the Dow Jones Sustainability indexes, reflecting its achievements in environmental, social, and governance practices [9]. - For 2025, the company forecasts revenue growth of 2.25% to 3.25% in its same-store portfolio, with EPS expected between $3.00 and $3.10 [10]. - Expansion activities are projected to involve $1.5 billion in acquisitions, funded through $1.0 billion in property sales and potential debt issuance [10].

Financial Performance - For Q4 2024, Earnings Per Share (EPS) increased to $1.10, a 34.1% rise from $0.82 in Q4 2023[5] - Funds from Operations (FFO) per share decreased by 3.0% to $0.97 compared to $1.00 in Q4 2023, while Normalized FFO remained stable at $1.00[5] - Net income for the year ended December 31, 2024, was $1,070,975, up from $868,488 in 2023, representing a growth of about 23.3%[39] - FFO per share for the year ended December 31, 2024, was $3.77, compared to $3.75 in 2023, indicating a slight increase[39] - Normalized FFO available to Common Shares and Units for the year ended December 31, 2024, was $1,521,606, compared to $1,477,081 in 2023, showing an increase of approximately 3.0%[39] - The company’s total revenues for the year ended December 31, 2024, were $2,716,579, compared to $2,638,467 in 2023, marking a 3.0% increase[59] - Total operating expenses for 2024 were $961,826, up from $926,689 in 2023, with Q4 2024 operating expenses at $245,025 compared to $222,645 in Q4 2023[166] - Diluted EPS for 2024 was $2.72, up from $2.20 in 2023, with Q4 2024 EPS at $1.10 compared to $0.82 in Q4 2023[160] Revenue and Income Growth - Same store revenues for 2024 increased by 3.0%, with same store Net Operating Income (NOI) rising by 3.1%[8] - The total rental income for the year ended December 31, 2024, was $2,980,108, compared to $2,873,964 in 2023, reflecting an increase of approximately 3.7%[36] - Same Store Residential Revenues for Q4 2024 were $688,118, representing a 2.5% increase compared to Q4 2023's $671,373[59] - The average rental rate for Q4 2024 was $3,147, up from $3,080 in Q4 2023, indicating a 2.2% increase[53] - The company reported a net income of $1,070,975 for 2024, compared to $868,488 in 2023, with Q4 2024 net income at $433,871 versus $322,269 in Q4 2023[164] Property Acquisitions and Sales - The company acquired three properties with 795 apartment units for approximately $274.3 million at a 5.2% Acquisition Cap Rate during Q4 2024[8] - The company sold seven properties consisting of 1,629 apartment units for approximately $610.1 million at a 5.2% Disposition Yield in Q4 2024[8] - The company acquired 18 properties for approximately $1.6 billion in 2024, with a weighted average Acquisition Cap Rate of 5.1%[26] - The company acquired 16 consolidated rental properties in 2024 for a total purchase price of $1,438,250, with a cap rate of 5.1%[48] Future Guidance - The company expects 2025 same store revenue growth between 2.25% and 3.25%[8] - Full year 2025 EPS guidance is set between $3.00 and $3.10, with FFO per share guidance between $3.87 and $3.97[10] - First quarter 2025 guidance for EPS is set between $0.63 and $0.67, FFO per share between $0.89 and $0.93, and Normalized FFO per share between $0.90 and $0.94[29] - The company expects 2025 Normalized FFO per share to be between $3.90 and $4.00, with a projected revenue change of 2.25% to 3.25%[125] Debt and Financial Management - The total debt as of December 31, 2024, was $8,121,745,000, with a weighted average interest rate of 3.73%[91] - Unsecured debt accounted for 79.9% of total debt, amounting to $6,491,055,000[91] - Debt to adjusted total assets ratio improved to 27.7% from 28.4% in the previous quarter, remaining well below the 60% limit[99] - Total debt to normalized EBITDAre ratio decreased to 4.43x from 4.60x, indicating improved leverage[101] - The Company maintains compliance with its unsecured debt covenants for all periods presented, reflecting adherence to financial ratios[140] Sustainability and Community Engagement - The company was recognized for sustainability, being included in the Dow Jones Sustainability World and North American Indices[8] - Advocacy contributions for the year ended December 31, 2024, amounted to $21,515, significantly higher than $2,142 in the previous year, showing increased community engagement[120] Operational Metrics - The occupancy rate for Q4 2024 was 96.1%, slightly up from 95.8% in Q4 2023[53] - The average occupancy rate across all markets was 96.2%, with a turnover rate of 42.5%[75] - The total number of Same Store Apartment Units was 75,876, with a physical occupancy rate of 96.1% in Q4 2024[68] - The total number of Same Store Apartment Units is 75,299, which accounts for over 96.0% of total revenues for the year ended December 31, 2024[76] Capital Expenditures and Development Projects - Capital expenditures to real estate totaled $301.434 million, with $273.997 million for same-store properties and $27.437 million for non-same-store properties[112] - Projects under development (consolidated) have a total budgeted capital cost of $384.793 million, with an expected NOI contribution of $1,591 million[112] - The company plans to spend approximately $295 million on capital expenditures for residential same-store properties in 2025[125] - The company plans to continue expanding its market presence through new developments and renovations, focusing on sustainability and technology enhancements[114]

Core Viewpoint - Equity Residential (EQR) is positioned to benefit from its diversified portfolio in affluent markets, with strong demand for rental units and strategic enhancements aiding growth, despite challenges from elevated supply and high-interest expenses [1][10][11]. Group 1: Company Strengths - EQR focuses on affluent renter locations, which helps maintain stable revenue streams and allows for easier rent increases during economic growth, with an estimated 3% growth in total same-store revenues for 2024 [4]. - The company is leveraging technology and organizational capabilities to enhance rent growth and operational efficiency, projecting a 3.2% increase in same-store net operating income (NOI) for 2024 [5]. - EQR is actively repositioning its portfolio by selling older properties and acquiring newer ones in high-demand submarkets, having acquired 14 properties worth $1.26 billion in Q3 2024 and disposed of six properties for $365.5 million in the first nine months of 2024 [6]. Group 2: Financial Health - EQR maintains a healthy balance sheet with nearly $1.7 billion in liquidity as of September 30, 2024, and a well-laddered debt maturity schedule, ending Q3 2024 with a net debt to normalized EBITDAre ratio of 4.56x and an unencumbered NOI percentage of 89.7% [7]. - The company is committed to solid dividend payouts, with a projected compound annual growth rate of 6% for dividends from 2011 to 2024, supported by a 2.5% growth projection in normalized funds from operations (FFO) per share for 2024 [9]. Group 3: Challenges - The elevated supply of residential rental units in some markets poses a challenge to EQR's rent growth momentum [10]. - High-interest rates continue to be a concern, with total debt at approximately $8.37 billion as of September 30, 2024, and estimated interest expenses expected to rise by 5.7% in 2024 [11].

Core Viewpoint - Equity Residential (EQR) has shown strong performance with a year-to-date stock price increase of 20.9%, surpassing the industry's growth of 11.5% [1] Financial Performance - EQR reported third-quarter 2024 normalized funds from operations (FFO) per share of 98 cents, aligning with the Zacks Consensus Estimate, and reflecting a year-over-year growth of 2.1% [1] - The Zacks Consensus Estimate for EQR's 2024 FFO per share is projected at $3.88, indicating a year-over-year growth of 2.65% [2] Strategic Initiatives - EQR is focusing on affluent renter markets, adapting to hybrid work environments and migration trends by acquiring and developing properties in suburban areas and entering new markets like Atlanta, GA, and Austin, TX [3] - As of September 30, 2024, EQR had 42 properties in expansion markets, contributing to 10% of its total portfolio net operating income (NOI) [4] - The company is repositioning its portfolio by selling older properties and acquiring newer ones in high-demand submarkets, acquiring 14 properties with 4,418 apartment units in Q3 2024 [5] Development Pipeline - EQR has a robust development pipeline with nine projects under development as of September 30, 2024, expected to enhance NOI and support FFO and net asset value (NAV) growth in the coming years [6] Financial Health - EQR maintains a healthy balance sheet with nearly $1.7 billion in liquidity and a well-structured debt maturity schedule, ending Q3 2024 with a net debt to normalized EBITDAre ratio of 4.56X [7][8] - Unencumbered NOI as a percentage of total NOI was 89.7%, providing financial flexibility and favorable access to debt markets [8] Dividend Policy - EQR is committed to solid dividend payouts, with an expected compound annual growth rate of 6% for dividends from 2011 to 2024, and has increased its dividend four times in the last five years, achieving an annualized growth rate of 3.4% [9]

Financial Performance - Net income for the quarter ended September 30, 2024, was $148,517 thousand, compared to $181,286 thousand for the same quarter in 2023, showing a decrease of about 18.1%[17] - Net income for the nine months ended September 30, 2024, was $637,104, compared to $546,219 for the same period in 2023, representing an increase of approximately 16.6%[21] - Comprehensive income for the nine months ended September 30, 2024, was $634,934 thousand, compared to $553,865 thousand for the same period in 2023, reflecting an increase of approximately 14.6%[18] - Net income attributable to controlling interests for the nine months ended September 30, 2024, was $616,716,000, compared to $523,746,000 for the same period in 2023, representing an increase of approximately 17.7%[25] - Net income available to Units – General Partner for the nine months ended September 30, 2024, was $614,014,000, compared to $521,428,000 for the same period in 2023, representing an increase of approximately 17.7%[39] - The total net operating income (NOI) for the nine months ended September 30, 2024, was $1.5 billion, compared to $1.4 billion for the same period in 2023, reflecting a year-over-year increase of approximately 3.8%[117] Revenue and Income Sources - Rental income for the quarter ended September 30, 2024, was $748,348 thousand, up from $724,067 thousand for the same quarter in 2023, representing an increase of about 3.3%[17] - Rental income for the nine months ended September 30, 2024, was $2,213,329 thousand, a 3.1% increase from $2,146,464 thousand for the same period in 2023[30] - Total lease revenue for the nine months ended September 30, 2024, was $2,115,266 thousand, compared to $2,052,647 thousand for the same period in 2023, reflecting an increase of approximately 3.1%[80] - Interest and other income for the nine months ended September 30, 2024, was $26,501 thousand, significantly higher than $11,296 thousand for the same period in 2023, representing a 134.3% increase[30] Assets and Liabilities - Total assets increased to $20,925,821 thousand as of September 30, 2024, compared to $20,034,564 thousand as of December 31, 2023, reflecting a growth of approximately 4.4%[15] - Total liabilities rose to $9,520,502 thousand as of September 30, 2024, compared to $8,456,188 thousand as of December 31, 2023, indicating an increase of approximately 12.6%[15] - Total shareholders' equity decreased to $10,853,975 thousand as of September 30, 2024, from $11,085,828 thousand as of December 31, 2023, a decrease of about 2.1%[16] - Cash and cash equivalents decreased to $28,610 thousand as of September 30, 2024, down from $50,743 thousand as of December 31, 2023, a decline of approximately 43.5%[15] Investments and Acquisitions - The company invested $1,320,592 in real estate acquisitions during the nine months ended September 30, 2024, compared to $324,497 in the same period of 2023, indicating a significant increase of approximately 307%[22] - The company acquired 15 rental properties for a total purchase price of $1,317,845 thousand, with $154,777 thousand allocated to land and $1,152,251 thousand to depreciable property[68] - The company disposed of 6 rental properties for a sales price of $365,500 thousand, resulting in a net gain of $227,829 thousand during the same period[69] Cash Flow and Financing Activities - Net cash provided by operating activities increased to $1,219,382 for the nine months ended September 30, 2024, from $1,188,524 in 2023, reflecting a growth of about 2.6%[21] - Net cash used for investing activities was $(1,363,616) for the nine months ended September 30, 2024, compared to $(468,355) in 2023, showing a decline in cash flow of about 191%[22] - Net cash provided by financing activities was $130,798 for the nine months ended September 30, 2024, a recovery from $(730,614) in the same period of 2023[22] Shareholder Information - Common shares balance at the end of the period increased to $3,794,000 from $3,797,000, with a net increase of 2,829 shares issued through the Employee Share Purchase Plan[25] - Common share distributions increased to $2.025 per share from $1.9875 per share, reflecting a growth of 1.9%[26] - The Company declared a dividend of $0.675 per share/unit for each quarter of 2024, representing a 2.0% annualized increase over 2023[167] Debt and Interest - The weighted average interest rate for the Company's debt was 3.85% as of September 30, 2024, with interest rate ranges from 0.10% to 5.25%[86] - The Company had total mortgage notes payable of $1,633,414 thousand as of September 30, 2024, with an estimated fair value of $1,556,724 thousand[97] - The Company has a $2.5 billion unsecured revolving credit facility maturing on October 26, 2027, with a weighted average interest rate of 6.14% for the nine months ended September 30, 2024[89] Market and Operational Insights - The company’s focus remains on acquiring and managing residential properties in dynamic cities, targeting affluent long-term renters[127] - The Company is currently evaluating the impact of the new segment reporting standards effective January 1, 2024, on its segment disclosures[51] - The Company’s primary business involves the management of multifamily residential properties, which accounted for less than 4.0% of total revenues from non-residential activities for the nine months ended September 30, 2024[114]

Equity Residential (NYSE:EQR) Q3 2024 Earnings Conference Call October 31, 2024 11:30 AM ET Company Participants Marty McKenna – Vice President, Investor Relations Mark Parrell – President and Chief Executive Officer Alex Brackenridge – Chief Investment Officer Michael Manelis – Chief Operating Officer Bob Garechana – Chief Financial Officer Conference Call Participants Eric Wolfe – Citi Steve Sakwa – Evercore ISI Haendel St. Juste – Mizuho Alexander Goldfarb – Piper Sandler John Pawlowski – Green Street Jo ...

Equity Residential (EQR) reported third-quarter 2024 normalized funds from operations (FFO) per share of 98 cents, in line with the Zacks Consensus Estimate. On a year-over-year basis, the normalized FFO per share grew 2.1%.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Results reflect decent same-store performances, backed by healthy demand amid modest supply. The company revised its 2024 guidance.The quarterly rental income of $748.3 million surpassed the Zacks Consensus Estimate ...