Financial Performance - Equity Residential (EQR) reported revenue of $760.81 million for the quarter ended March 2025, a year-over-year increase of 4.1% [1] - The EPS for the same period was $0.95, compared to $0.77 a year ago, indicating a positive growth in earnings [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $766.84 million, resulting in a surprise of -0.79% [1] - The company delivered an EPS surprise of +2.15%, with the consensus EPS estimate being $0.93 [1] Key Metrics - The physical occupancy rate was 96.5%, exceeding the average estimate of 96.1% from four analysts [4] - Total apartment units stood at 84,648, surpassing the three-analyst average estimate of 83,881 [4] - Change in same-store revenue growth was 2.2%, slightly below the 2.4% estimated by two analysts [4] - Rental income from same-store properties was $715.80 million, compared to the estimated $722.99 million, reflecting a -0.1% change year-over-year [4] - Net earnings per share (diluted) were $0.67, significantly higher than the average estimate of $0.32 based on eight analysts [4] Stock Performance - Shares of Equity Residential have returned -3.2% over the past month, while the Zacks S&P 500 composite changed by -0.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Equity Residential (EQR) came out with quarterly funds from operations (FFO) of $0.95 per share, beating the Zacks Consensus Estimate of $0.93 per share. This compares to FFO of $0.93 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 2.15%. A quarter ago, it was expected that this real estate investment trust would post FFO of $1 per share when it actually produced FFO of $1, delivering no surprise.Over the last four quarters, the co ...

[Earnings Release](index=4&type=section&id=Earnings%20Release) This section provides an overview of Equity Residential's first quarter 2025 financial results, operational highlights, investment activities, and future guidance, along with company information and forward-looking statements [First Quarter 2025 Results Overview](index=4&type=section&id=First%20Quarter%202025%20Results%20Overview) Equity Residential reported strong first-quarter 2025 results, exceeding guidance expectations. While EPS decreased, FFO and Normalized FFO per share saw positive growth compared to Q1 2024, driven by robust revenue growth in key markets and record-low resident turnover Key Financial Metrics (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | $ Change | % Change | | :----------------------- | :------ | :------ | :------- | :------- | | Earnings Per Share (EPS) | $0.67 | $0.77 | $(0.10) | (13.0%) | | Funds from Operations (FFO) per share | $0.94 | $0.87 | $0.07 | 8.0% | | Normalized FFO (NFFO) per share | $0.95 | $0.93 | $0.02 | 2.2% | - The decrease in EPS is primarily due to lower property sale gains and higher depreciation expense. FFO and NFFO per share increases are attributed to various adjustment items and strong operating performance[10](index=10&type=chunk) - First quarter revenue growth exceeded expectations, driven by strong performance in New York and Washington, D.C., and improvements in San Francisco and Seattle. Washington, D.C. showed resilient demand despite government job cuts[11](index=11&type=chunk) [Recent Highlights and Operational Performance](index=4&type=section&id=Recent%20Highlights%20and%20Operational%20Performance) The company's President and CEO, Mark J. Parrell, expressed encouragement over the Q1 operating performance, positioning the company well for the primary leasing season. Key operational metrics showed positive trends, including same store revenue growth and historically low resident turnover - CEO Mark J. Parrell noted that operating performance exceeded expectations, positioning the company well for the primary leasing season, and anticipates business resilience amidst economic uncertainty due to favorable demand, supply, and lifestyle preferences[9](index=9&type=chunk) Overall Same Store Operating Statistics | Metric | Q1 2025 vs. Q1 2024 | Q1 2025 vs. Q4 2024 | | :---------------- | :------------------ | :------------------ | | Apartment Units | 75,362 | 80,818 | | Physical Occupancy | 96.5% vs. 96.3% | 96.4% vs. 96.0% | | Revenues | 2.2% | 0.8% |\ | Expenses | 4.1% | 5.7% |\ | NOI | 1.3% | (1.4%) | - Resident Turnover in Q1 2025 was **7.9%**, the lowest in the company's history[11](index=11&type=chunk) Same Store Residential Revenues (Q1 2025 vs. Q1 2024) | Same Store Residential Revenues (Q1 2025 vs. Q1 2024) | | :---------------------------------------------------- | | Lease rates: 1.9% |\ | Vacancy gain (loss): 0.2% |\ | Bad Debt, Net: 0.2% |\ | Other: 0.4% |\ | **Total Same Store Residential Revenues: 2.7%** | [Residential Same Store Operating Statistics](index=6&type=section&id=Residential%20Same%20Store%20Operating%20Statistics) Residential same store operating statistics for Q1 2025 showed improved physical occupancy and a higher percentage of residents renewing, while new lease changes remained negative but improved from the prior quarter. Blended rates met expectations and are projected to increase in Q2 2025 Residential Same Store Operating Statistics | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :-------------------------- | :------ | :------ | :------ | | Physical Occupancy | 96.5% | 96.1% | 96.3% | | Percentage of Residents Renewing by quarter | 62.0% | 61.3% | 61.1% | | New Lease Change | (2.2%) | (4.4%) | (2.3%) | | Renewal Rate Achieved | 4.9% | 5.0% | 4.7% | | Blended Rate | 1.8% | 1.0% | 1.5% | - Blended Rate for Q1 2025 met expectations and was consistent with seasonal patterns, while Physical Occupancy exceeded expectations[20](index=20&type=chunk) - For Q2 2025, the Blended Rate is expected to be between **2.8%** and **3.4%**[20](index=20&type=chunk) [Investment Activity](index=6&type=section&id=Investment%20Activity) In Q1 2025, Equity Residential did not acquire any operating properties but sold two properties and one land parcel for a total of approximately $229.9 million. The company also completed three development projects, adding 945 apartment units in New York, Denver, and San Francisco - No operating properties were acquired during Q1 2025[21](index=21&type=chunk) - Sold two properties (**546 apartment units**) in San Diego and Seattle for approximately **$225.6 million** at a weighted average Disposition Yield of **5.2%**[21](index=21&type=chunk) - Sold one land parcel for approximately **$4.3 million**[21](index=21&type=chunk) - Completed two joint venture development projects in New York and Denver (**720 apartment units**) for approximately **$285.9 million**[22](index=22&type=chunk) - Completed one wholly owned development project in San Francisco (**225 apartment units**) for approximately **$152.6 million**[22](index=22&type=chunk) [Second Quarter 2025 Guidance](index=6&type=section&id=Second%20Quarter%202025%20Guidance) Equity Residential provided guidance for Q2 2025 EPS, FFO per share, and Normalized FFO per share. The company is not revising its annual guidance from the Q4 2024 earnings release Q2 2025 Guidance | Metric | Q2 2025 Guidance | | :----------------------- | :--------------- | | EPS | $0.49 to $0.53 | | FFO per share | $0.95 to $0.99 | | Normalized FFO per share | $0.96 to $1.00 | - The company is not revising its annual operating or other guidance (including EPS, FFO per share, and Normalized FFO per share) provided in the Q4 2024 earnings release[23](index=23&type=chunk) - The difference in Normalized FFO per share guidance for Q2 2025 compared to Q1 2025 actuals is primarily due to an expected positive impact from Residential same store NOI (**$0.03**) offset by higher interest expense, net (**$(0.01)**)[25](index=25&type=chunk) [About Equity Residential](index=7&type=section&id=About%20Equity%20Residential) Equity Residential is an S&P 500 member focused on acquiring, developing, and managing residential properties in dynamic cities that attract affluent long-term renters. The company owns or invests in 312 properties with 84,648 apartment units across established and expanding markets - Equity Residential is an S&P 500 member, focused on acquisition, development, and management of residential properties in and around dynamic cities attracting affluent long-term renters[26](index=26&type=chunk) - The company owns or has investments in **312 properties**, comprising **84,648 apartment units**[26](index=26&type=chunk) - Established presence in Boston, New York, Washington, D.C., Seattle, San Francisco, and Southern California, with an expanding presence in Denver, Atlanta, Dallas/Ft. Worth, and Austin[26](index=26&type=chunk) [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) This section highlights that the press release contains forward-looking statements based on management's current expectations, estimates, and projections. These statements are subject to inherent uncertainties and risks, including changes in market conditions, construction, government regulations, and competition, as detailed in the company's SEC filings. Equity Residential disclaims any obligation to update these statements - The press release contains forward-looking statements based on current expectations, estimates, projections, and assumptions made by management[27](index=27&type=chunk) - Forward-looking information is subject to uncertainties and risks, including changes in general market conditions, job growth, labor/material costs, new multifamily construction, government regulations, and competition[27](index=27&type=chunk) - Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue due to subsequent events[27](index=27&type=chunk) [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) This section presents Equity Residential's consolidated statements of operations, detailing revenues, expenses, and net income for the first quarter of 2025 compared to the prior year [Consolidated Statements of Operations Summary](index=8&type=section&id=Consolidated%20Statements%20of%20Operations%20Summary) Equity Residential reported a decrease in net income for Q1 2025 compared to Q1 2024, primarily due to lower net gain on sales of real estate properties and higher depreciation and interest expenses, despite an increase in rental income Consolidated Statements of Operations | Metric (in thousands) | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change (in thousands) | | :-------------------- | :-------- | :-------- | :-------- | | Rental income | $760,810 | $730,818 | +$29,992 | | Total expenses | $566,542 | $520,430 | +$46,112 | | Net gain on sales of real estate properties | $154,152 | $188,185 | $(34,033) | | Interest expense, net | $(72,114) | $(67,212) | $(4,902) | | Net income | $264,798 | $305,032 | $(40,234) | | Net income available to Common Shares | $256,236 | $293,796 | $(37,560) | | Earnings per share – diluted | $0.67 | $0.77 | $(0.10) | | Distributions declared per Common Share outstanding | $0.6925 | $0.675 | +$0.0175 | - Depreciation expense increased from **$225.7 million** in Q1 2024 to **$256.7 million** in Q1 2025[30](index=30&type=chunk) - General and administrative expenses increased from **$15.7 million** in Q1 2024 to **$18.3 million** in Q1 2025[30](index=30&type=chunk) [Consolidated Statements of Funds From Operations and Normalized Funds From Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Funds%20From%20Operations%20and%20Normalized%20Funds%20From%20Operations) This section outlines Equity Residential's Funds From Operations (FFO) and Normalized FFO, key non-GAAP metrics for real estate investment trusts, for the first quarter of 2025 [FFO and Normalized FFO Summary](index=9&type=section&id=FFO%20and%20Normalized%20FFO%20Summary) Equity Residential reported an increase in FFO and Normalized FFO for Q1 2025 compared to Q1 2024, primarily driven by adjustments for depreciation and a significant reduction in 'Other miscellaneous items' compared to the prior year Funds From Operations and Normalized Funds From Operations | Metric (in thousands) | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change (in thousands) | | :-------------------- | :-------- | :-------- | :-------- | | Net income | $264,798 | $305,032 | $(40,234) | | FFO available to Common Shares and Units | $368,935 | $338,419 | +$30,516 | | Normalized FFO available to Common Shares and Units | $372,518 | $364,896 | +$7,622 | | FFO per share and Unit – diluted | $0.94 | $0.87 | +$0.07 | | Normalized FFO per share and Unit – diluted | $0.95 | $0.93 | +$0.02 | - Depreciation adjustment for FFO increased from **$225.7 million** in Q1 2024 to **$256.7 million** in Q1 2025[33](index=33&type=chunk) - Other miscellaneous items adjustment for Normalized FFO significantly decreased from **$30.6 million** in Q1 2024 to **$1.7 million** in Q1 2025[33](index=33&type=chunk) [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) This section provides a summary of Equity Residential's financial position, including assets, liabilities, and equity, as of March 31, 2025, and December 31, 2024 [Consolidated Balance Sheets Summary](index=10&type=section&id=Consolidated%20Balance%20Sheets%20Summary) As of March 31, 2025, Equity Residential's total assets slightly decreased compared to December 31, 2024, primarily due to a reduction in investment in real estate, net, and cash. Total liabilities also decreased, driven by lower mortgage notes payable and line of credit balances Consolidated Balance Sheets | Metric (in thousands) | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | | :-------------------- | :------------- | :---------------- | :--------- | | Total assets | $20,562,185 | $20,834,176 | $(271,991) | | Investment in real estate, net | $19,324,541 | $19,558,328 | $(233,787) | | Cash and cash equivalents | $39,849 | $62,302 | $(22,453) | | Total liabilities | $8,973,055 | $9,249,829 | $(276,774) | | Mortgage notes payable, net | $1,593,803 | $1,630,690 | $(36,887) | | Line of credit and commercial paper | $304,000 | $543,679 | $(239,679) | | Total equity | $11,251,431 | $11,245,784 | +$5,647 | - Projects under development decreased from **$261.7 million** to **$144.7 million**, reflecting project completions[35](index=35&type=chunk) - Accounts payable and accrued expenses increased from **$99.3 million** to **$149.3 million**[35](index=35&type=chunk) [Portfolio Summary](index=11&type=section&id=Portfolio%20Summary) This section offers a comprehensive overview of Equity Residential's property portfolio, categorized by market and detailing key metrics such as unit count, NOI contribution, and average rental rates [Portfolio Overview by Market](index=11&type=section&id=Portfolio%20Overview%20by%20Market) As of March 31, 2025, Equity Residential's portfolio consists of 312 properties and 84,648 apartment units, with a significant concentration in established markets like Southern California, San Francisco, Washington D.C., New York, Boston, and Seattle, which collectively account for over 90% of budgeted NOI Portfolio Summary by Market | Market Category | Properties | Apartment Units | % of Stabilized Budgeted NOI | Average Rental Rate | | :---------------- | :--------- | :-------------- | :--------------------------- | :------------------ | | Established Markets | 267 | 71,017 | 90.2% | $3,259 | | Expansion Markets | 45 | 13,631 | 9.8% | $2,082 | | **Total** | **312** | **84,648** | **100.0%** | **$3,072** | - New York has the highest average rental rate at **$4,662**, followed by San Francisco at **$3,415**[37](index=37&type=chunk) - The portfolio includes **294 wholly owned properties** (**80,010 units**), **12 consolidated partially owned properties** (**2,656 units**), and **6 unconsolidated partially owned properties** (**1,982 units**)[37](index=37&type=chunk) [Portfolio Rollforward](index=12&type=section&id=Portfolio%20Rollforward) This section details the changes in Equity Residential's property portfolio during Q1 2025, including dispositions and completed development projects, and their impact on apartment unit count [Q1 2025 Portfolio Changes](index=12&type=section&id=Q1%202025%20Portfolio%20Changes) During Q1 2025, Equity Residential's portfolio saw a net increase of 399 apartment units, resulting from the disposition of two consolidated rental properties and one land parcel, offset by the completion of three development projects (one consolidated, two unconsolidated) Portfolio Rollforward Activity | Activity | Properties | Apartment Units | Sales Price (in thousands) | | :-------------------------- | :--------- | :-------------- | :---------- | | Balance as of 12/31/2024 | 311 | 84,249 | | | Dispositions: Consolidated Rental Properties | (2) | (546) | $(225,600) | | Dispositions: Consolidated Land Parcels | — | — | $(4,300) | | Completed Developments – Consolidated | 1 | 225 | | | Completed Developments – Unconsolidated | 2 | 720 | | | **Balance as of 3/31/2025** | **312** | **84,648** | | - The two consolidated rental properties were sold at a weighted average Disposition Yield of **5.2%**[40](index=40&type=chunk) [Same Store Results](index=13&type=section&id=Same%20Store%20Results) This section presents the operating performance of Equity Residential's same store properties, analyzing revenue, expenses, and Net Operating Income (NOI) trends across residential and non-residential segments and by market [Overall Same Store Results (Residential and Non-Residential)](index=13&type=section&id=Overall%20Same%20Store%20Results%20(Residential%20and%20Non-Residential)) Equity Residential's same store portfolio (including Residential and Non-Residential) showed revenue growth and improved physical occupancy year-over-year, but a slight decline in NOI quarter-over-quarter due to higher expenses Overall Same Store Operating Statistics | Metric | Q1 2025 vs. Q1 2024 (75,362 units) | Q1 2025 vs. Q4 2024 (80,818 units) | | :---------------- | :--------------------------------- | :--------------------------------- | | Revenues | +2.2% | +0.8% | | Expenses | +4.1% | +5.7% | | NOI | +1.3% | (1.4%) | | Average Rental Rate | +2.4% | +0.3% | | Physical Occupancy | +0.2% | +0.4% | | Turnover | (0.7%) | (1.3%) | - Non-Residential operations reduced quarterly same store revenue growth by **0.50%** year-over-year, primarily due to higher reinstatement of straight-line receivable balances in Q1 2024[45](index=45&type=chunk) [Same Store Residential Revenues – GAAP to Cash Basis](index=14&type=section&id=Same%20Store%20Residential%20Revenues%20%E2%80%93%20GAAP%20to%20Cash%20Basis) Same Store Residential Revenues on a GAAP basis increased by 2.7% year-over-year and 0.7% quarter-over-quarter. When adjusted for leasing concessions on a cash basis, the year-over-year growth was slightly lower at 2.5%, while quarter-over-quarter remained consistent at 0.7% Same Store Residential Revenues Reconciliation | Metric (in thousands) | Q1 2025 vs. Q1 2024 (75,362 units) (in thousands) | Q1 2025 vs. Q4 2024 (80,818 units) (in thousands) | | :---------------------------------------------------- | :--------------------------------- | :--------------------------------- | | Same Store Residential Revenues (GAAP Basis) | $688,857 vs. $671,039 | $722,351 vs. $717,211 | | Leasing Concessions amortized | $5,176 vs. $5,052 | $5,800 vs. $5,522 | | Leasing Concessions granted | $(5,972) vs. $(4,836) | $(6,977) vs. $(6,619) | | Same Store Residential Revenues with Leasing Concessions on a cash basis | $688,061 vs. $671,255 | $721,174 vs. $716,114 | | % change - GAAP revenue | 2.7% | 0.7% | | % change - cash revenue | 2.5% | 0.7% | [Same Store Net Operating Income By Quarter](index=14&type=section&id=Same%20Store%20Net%20Operating%20Income%20By%20Quarter) Same store NOI for 75,362 apartment units increased year-over-year in Q1 2025 but saw a sequential decline from Q4 2024, primarily due to higher expenses Same Store Net Operating Income Trends | Metric (in thousands) | Q1 2025 (in thousands) | Q4 2024 (in thousands) | Q3 2024 (in thousands) | Q2 2024 (in thousands) | Q1 2024 (in thousands) | | :-------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Same store revenues | $715,800 | $709,646 | $706,976 | $704,060 | $700,443 | | Same store expenses | $235,241 | $221,822 | $226,647 | $219,926 | $225,958 | | Same store NOI | $480,559 | $487,824 | $480,329 | $484,134 | $474,485 | - Same store NOI increased by **$6.07 million** (**1.3%**) from Q1 2024 to Q1 2025, but decreased by **$7.27 million** (**1.5%**) from Q4 2024 to Q1 2025[43](index=43&type=chunk)[45](index=45&type=chunk)[50](index=50&type=chunk) [Same Store Residential Accounts Receivable and Bad Debt](index=15&type=section&id=Same%20Store%20Residential%20Accounts%20Receivable%20and%20Bad%20Debt) Net residential accounts receivable balances remained stable, while bad debt, net, as a percentage of same store residential revenues, improved year-over-year, indicating better collection performance Residential Accounts Receivable Balances | Metric (in thousands) | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | March 31, 2024 (in thousands) | | :-------------------------------- | :------------- | :---------------- | :------------- | | Residential accounts receivable balances | $13,972 | $14,328 | $17,787 | | Allowance for doubtful accounts | $(9,132) | $(9,431) | $(12,885) | | Net receivable balances | $4,840 | $4,897 | $4,902 | Bad Debt Analysis | Metric (in thousands) | Q1 2025 (in thousands) | Q4 2024 (in thousands) | Q1 2024 (in thousands) | | :-------------------------------- | :------- | :------- | :------- | | Bad debts before governmental rental assistance | $7,419 | $7,780 | $8,846 | | Governmental rental assistance received | $(268) | $(367) | $(442) | | Bad Debt, Net | $7,151 | $7,413 | $8,404 | | Bad Debt, Net as a % of Same Store Residential Revenues | 1.0% | 1.1% | 1.3% | - Total same store Residential Leasing Concessions granted in Q1 2025 were approximately **$6.0 million**[52](index=52&type=chunk) [Same Store Residential Results/Statistics by Market (Q1 2025 vs Q1 2024)](index=16&type=section&id=Same%20Store%20Residential%20Results%2FStatistics%20by%20Market%20(Q1%202025%20vs%20Q1%202024)) Year-over-year, most established markets showed positive NOI growth, with Seattle leading at 4.4% and New York at 3.4%. Denver and Other Expansion Markets experienced NOI decreases, reflecting regional variations in performance Same Store Residential Performance by Market (Q1 2025 vs Q1 2024) | Market/Metro Area | Q1 2025 % of Actual NOI | Q1 2025 Average Rental Rate | Q1 2025 Physical Occupancy % | Q1 2025 Turnover | Revenues Change | Expenses Change | NOI Change | Average Rental Rate Change | Physical Occupancy Change | Turnover Change | | :------------------ | :---------------------- | :-------------------------- | :--------------------------- | :--------------- | :-------------- | :-------------- | :--------- | :------------------------- | :------------------------ | :-------------- | | Los Angeles | 17.7% | $2,956 | 95.7% | 9.0% | 1.4% | 2.6% | 0.9% | 1.2% | 0.2% | (0.6%) | | San Francisco | 16.3% | $3,387 | 96.8% | 8.3% | 3.3% | 3.3% | 3.3% | 3.0% | 0.3% | (1.2%) | | Washington, D.C. | 16.1% | $2,800 | 97.3% | 6.0% | 4.6% | 8.2% | 3.0% | 4.4% | 0.2% | (1.0%) | | New York | 14.5% | $4,710 | 97.6% | 6.3% | 3.2% | 2.9% | 3.4% | 2.6% | 0.6% | (0.2%) | | Boston | 11.2% | $3,657 | 95.8% | 7.1% | 2.9% | 6.2% | 1.5% | 2.8% | 0.1% | (0.3%) | | Seattle | 10.3% | $2,647 | 96.5% | 9.0% | 3.7% | 2.1% | 4.4% | 3.3% | 0.4% | (0.7%) | | Denver | 2.8% | $2,354 | 95.5% | 10.6% | (3.0%) | (0.2%) | (4.3%) | (2.3%) | (0.7%) | 0.1% | | Other Expansion Markets | 2.3% | $1,879 | 95.1% | 9.5% | (4.8%) | 2.8% | (9.9%) | (4.7%) | (0.1%) | (3.7%) | | **Total** | **100.0%** | **$3,160** | **96.5%** | **7.9%** | **2.7%** | **4.0%** | **2.0%** | **2.4%** | **0.2%** | **(0.7%)** | [Same Store Residential Results/Statistics by Market (Q1 2025 vs Q4 2024)](index=17&type=section&id=Same%20Store%20Residential%20Results%2FStatistics%20by%20Market%20(Q1%202025%20vs%20Q4%202024)) Quarter-over-quarter, most established markets experienced a decline in NOI, primarily due to higher expenses, despite modest revenue growth. Seattle maintained flat NOI, while expansion markets continued to see NOI decreases Same Store Residential Performance by Market (Q1 2025 vs Q4 2024) | Market/Metro Area | Q1 2025 % of Actual NOI | Q1 2025 Average Rental Rate | Q1 2025 Physical Occupancy % | Q1 2025 Turnover | Revenues Change | Expenses Change | NOI Change | Average Rental Rate Change | Physical Occupancy Change | Turnover Change | | :------------------ | :---------------------- | :-------------------------- | :--------------------------- | :--------------- | :-------------- | :-------------- | :--------- | :------------------------- | :------------------------ | :-------------- | | Los Angeles | 16.8% | $2,956 | 95.7% | 9.0% | 0.5% | 5.2% | (1.6%) | 0.6% | (0.1%) | (0.6%) | | San Francisco | 15.9% | $3,387 | 96.8% | 8.3% | 1.7% | 8.0% | (0.8%) | 1.0% | 0.7% | (2.0%) | | Washington, D.C. | 15.7% | $2,798 | 97.3% | 6.1% | 1.1% | 9.3% | (2.5%) | 0.3% | 0.7% | (1.9%) | | New York | 13.9% | $4,710 | 97.6% | 6.3% | 0.7% | 5.1% | (2.4%) | 0.4% | 0.2% | (0.2%) | | Boston | 10.8% | $3,635 | 95.8% | 7.0% | 0.3% | 7.8% | (2.7%) | (0.2%) | 0.5% | (0.8%) | | Seattle | 9.8% | $2,647 | 96.5% | 9.0% | 0.6% | 2.2% | 0.0% | 0.4% | 0.2% | 0.0% | | Denver | 3.7% | $2,319 | 95.1% | 10.8% | (1.5%) | 1.5% | (2.8%) | (1.7%) | 0.2% | (2.1%) | | Other Expansion Markets | 4.9% | $1,922 | 95.4% | 9.2% | (0.5%) | 1.7% | (1.9%) | (1.4%) | 0.8% | (1.6%) | | **Total** | **100.0%** | **$3,092** | **96.4%** | **7.9%** | **0.7%** | **5.7%** | **(1.6%)** | **0.3%** | **0.4%** | **(1.3%)** | [Same Store Residential Net Effective Lease Pricing Statistics](index=18&type=section&id=Same%20Store%20Residential%20Net%20Effective%20Lease%20Pricing%20Statistics) In Q1 2025, established markets generally showed improved new lease changes and positive blended rates compared to Q4 2024, with New York having the highest blended rate. Expansion markets continued to experience negative new lease changes and blended rates Same Store Residential Net Effective Lease Pricing | Market/Metro Area | New Lease Change (Q1 2025) | New Lease Change (Q4 2024) | Renewal Rate Achieved (Q1 2025) | Renewal Rate Achieved (Q4 2024) | Blended Rate (Q1 2025) | Blended Rate (Q4 2024) | | :------------------ | :------------------------- | :------------------------- | :------------------------------ | :------------------------------ | :--------------------- | :--------------------- | | Southern California | (2.1%) | (4.9%) | 4.6% | 4.4% | 1.6% | 0.4% | | San Francisco | 0.6% | (2.8%) | 5.4% | 6.6% | 3.3% | 2.5% | | Washington, D.C. | 0.0% | (2.8%) | 5.7% | 5.5% | 3.2% | 1.8% | | New York | 1.4% | (1.6%) | 4.8% | 4.3% | 3.5% | 2.3% | | Boston | (5.3%) | (4.8%) | 4.5% | 4.4% | 0.0% | 1.1% | | Seattle | (3.4%) | (6.0%) | 5.5% | 6.9% | 1.7% | 0.5% | | Subtotal – Established Markets | (1.3%) | (3.8%) | 5.0% | 5.1% | 2.3% | 1.4% | | Denver | (13.1%) | (11.8%) | 3.9% | 3.1% | (6.1%) | (4.7%) | | Other Expansion Markets | (14.7%) | (12.9%) | 1.5% | 1.8% | (8.8%) | (6.3%) | | **Total** | **(2.2%)** | **(4.4%)** | **4.9%** | **5.0%** | **1.8%** | **1.0%** | [Total Same Store Operating Expenses](index=19&type=section&id=Total%20Same%20Store%20Operating%20Expenses) Total same store operating expenses increased by 4.1% year-over-year in Q1 2025, primarily driven by higher utilities, real estate taxes, and on-site payroll. Leasing and advertising expenses also saw a significant increase Total Same Store Operating Expenses Breakdown | Expense Category | Q1 2025 (in thousands) | Q1 2024 (in thousands) | $ Change (in thousands) | % Change | % of Q1 2025 Operating Expenses | | :------------------------ | :--------------------- | :--------------------- | :------- | :------- | :------------------------------ | | Real estate taxes | $94,556 | $91,907 | $2,649 | 2.9% | 40.2% | | On-site payroll | $43,444 | $42,019 | $1,425 | 3.4% | 18.5% | | Utilities | $39,479 | $36,145 | $3,334 | 9.2% | 16.8% | | Repairs and maintenance | $29,437 | $29,091 | $346 | 1.2% | 12.5% | | Insurance | $9,240 | $9,134 | $106 | 1.2% | 3.9% | | Leasing and advertising | $2,720 | $2,313 | $407 | 17.6% | 1.1% | | Other on-site operating expenses | $16,365 | $15,349 | $1,016 | 6.6% | 7.0% | | **Total Same Store Operating Expenses** | **$235,241** | **$225,958** | **$9,283** | **4.1%** | **100.0%** | - Real estate taxes increased due to escalation in rates and assessed values, including a **1 percentage point** contribution from 421-a tax abatement burnoffs in New York City[66](index=66&type=chunk) - Utilities increased primarily due to higher commodity prices for gas and electric, and higher water, sewer, and trash expenses[67](index=67&type=chunk) - Leasing and advertising expenses increased primarily due to higher advertising expenses and processing fees[68](index=68&type=chunk) [Debt Summary](index=20&type=section&id=Debt%20Summary) This section provides a detailed overview of Equity Residential's debt profile, including its composition, maturity schedule, and compliance with key debt covenants and credit ratios as of March 31, 2025 [Debt Profile as of March 31, 2025](index=20&type=section&id=Debt%20Profile%20as%20of%20March%2031,%202025) As of March 31, 2025, Equity Residential's total debt stood at $7.85 billion, predominantly unsecured and fixed-rate, with a weighted average interest rate of 3.74% and an average maturity of 7.2 years Debt Profile Summary | Debt Type | Debt Balances (in thousands) | % of Total | Weighted Average Rates | Weighted Average Maturities (years) | | :-------------------------- | :--------------------------- | :--------- | :--------------------- | :---------------------------------- | | Secured | $1,593,803 | 20.3% | 3.77% | 6.6 | | Unsecured | $6,253,081 | 79.7% | 3.74% | 7.4 | | **Total** | **$7,846,884** | **100.0%** | **3.74%** | **7.2** | | Fixed Rate Debt | $7,350,892 | 93.7% | 3.72% | 7.4 | | Floating Rate Debt | $495,992 | 6.3% | 3.98% | 4.0 | - The weighted average maturity of commercial paper outstanding was **1 day** at March 31, 2025, with a weighted average amount outstanding of approximately **$390.2 million** for the quarter[72](index=72&type=chunk) - The company capitalized interest of approximately **$3.9 million** in Q1 2025, up from **$3.1 million** in Q1 2024[73](index=73&type=chunk) [Debt Maturity Schedule](index=21&type=section&id=Debt%20Maturity%20Schedule) Equity Residential has a well-laddered debt maturity schedule, with significant maturities in 2025 and 2030, and a substantial portion of debt maturing in 2035 and beyond. The majority of the debt is fixed-rate Debt Maturity Schedule by Year | Year | Fixed Rate (in thousands) | Floating Rate (in thousands) | Total (in thousands) | % of Total | Weighted Average Coupons on Fixed Rate Debt | Weighted Average Coupons on Total Debt | | :--- | :------------------------ | :--------------------------- | :------------------- | :--------- | :------------------------------------------ | :------------------------------------- | | 2025 | $450,000 | $310,900 | $760,900 | 9.6% | 3.38% | 3.84% | | 2026 | $592,025 | $7,400 | $599,425 | 7.6% | 3.58% | 3.58% | | 2027 | $400,000 | $8,200 | $408,200 | 5.2% | 3.25% | 3.24% | | 2028 | $900,000 | $9,000 | $909,000 | 11.5% | 3.79% | 3.78% | | 2029 | $888,120 | $9,700 | $897,820 | 11.3% | 3.30% | 3.30% | | 2030 | $1,148,462 | $10,800 | $1,159,262 | 14.6% | 2.53% | 2.53% | | 2031 | $528,500 | $37,700 | $566,200 | 7.2% | 1.94% | 2.00% | | 2032 | — | $26,000 | $26,000 | 0.3% | — | 3.09% | | 2033 | $550,000 | — | $550,000 | 6.9% | 5.22% | 5.22% | | 2034 | $600,000 | — | $600,000 | 7.6% | 4.65% | 4.65% | | 2035+ | $1,350,850 | $86,960 | $1,437,810 | 18.2% | 4.39% | 4.22% | | **Total** | **$7,350,892** | **$495,992** | **$7,846,884** | **100.0%** | **3.62%** | **3.62%** | - The 2025 floating rate debt includes **$304.0 million** in principal outstanding on the Commercial Paper Program[77](index=77&type=chunk) [Selected Unsecured Public Debt Covenants and Credit Ratios](index=22&type=section&id=Selected%20Unsecured%20Public%20Debt%20Covenants%20and%20Credit%20Ratios) Equity Residential maintained strong compliance with its unsecured public debt covenants as of March 31, 2025, showing improved credit ratios such as lower total and net debt to Normalized EBITDAre and a higher percentage of unencumbered NOI Selected Unsecured Public Debt Covenants | Covenant | March 31, 2025 | December 31, 2024 | | :---------------------------------------------------- | :------------- | :---------------- | | Debt to Adjusted Total Assets (not to exceed 60%) | 26.8% | 27.7% | | Secured Debt to Adjusted Total Assets (not to exceed 40%) | 6.2% | 6.3% | | Consolidated Income Available for Debt Service to Maximum Annual Service Charges (must be at least 1.5 to 1) | 6.00 | 5.67 | | Total Unencumbered Assets to Unsecured Debt (must be at least 125%) | 493.3% | 473.7% | Key Credit Ratios | Credit Ratio | March 31, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :---------------- | | Total debt to Normalized EBITDAre | 4.25x | 4.43x | | Net debt to Normalized EBITDAre | 4.21x | 4.38x | | Unencumbered NOI as a % of total NOI | 90.5% | 89.7% | - The company was in compliance with its unsecured debt covenants for all periods presented[121](index=121&type=chunk) [Capital Structure](index=23&type=section&id=Capital%20Structure) This section outlines Equity Residential's capital structure, detailing the composition of its total market capitalization, including debt, common shares, and preferred equity as of March 31, 2025 [Capital Structure Overview as of March 31, 2025](index=23&type=section&id=Capital%20Structure%20Overview%20as%20of%20March%2031,%202025) As of March 31, 2025, Equity Residential's total market capitalization was approximately $35.89 billion, with equity representing 78.1% and total debt representing 21.9%. Common shares and units constitute the vast majority of the equity Market Capitalization Breakdown | Component | Amount (in thousands) | % of Total Market Capitalization | | :-------------------------- | :-------------------- | :------------------------------- | | Total Debt | $7,846,884 | 21.9% | | Common Shares and Units (Market Value) | $28,028,148 | 78.1% | | Perpetual Preferred Equity | $17,155 | 0.1% | | **Total Market Capitalization** | **$35,892,187** | **100.0%** | - Common Shares (including Restricted Shares) represent **97.0%** of total shares and units, while Units (including OP Units and Restricted Units) represent **3.0%**[83](index=83&type=chunk) - The common share price at March 31, 2025, was **$71.58**[83](index=83&type=chunk) [Common Share and Unit Weighted Average Amounts Outstanding](index=24&type=section&id=Common%20Share%20and%20Unit%20Weighted%20Average%20Amounts%20Outstanding) This section presents the weighted average common shares and units outstanding for Equity Residential, used in the calculation of per-share metrics for net income, FFO, and Normalized FFO [Weighted Average Shares and Units Outstanding](index=24&type=section&id=Weighted%20Average%20Shares%20and%20Units%20Outstanding) Equity Residential's weighted average common shares and units outstanding for diluted EPS, FFO, and Normalized FFO purposes increased slightly year-over-year, reflecting a modest increase in shares issuable from assumed conversions and vesting Weighted Average Shares and Units Outstanding | Metric | Q1 2025 | Q1 2024 | | :---------------------------------------------------- | :------------ | :------------ | | Weighted Average Amounts Outstanding for Net Income Purposes: | | | | Common Shares - basic | 379,207,994 | 378,811,922 | | Total Common Shares and Units - diluted | 391,179,431 | 390,561,185 | | Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes: | | | | Total Common Shares and OP Units - basic | 389,719,163 | 389,481,268 | | Total Common Shares and Units - diluted | 391,179,431 | 390,561,185 | | Period Ending Amounts Outstanding: | | | | Total Shares and Units | 391,563,950 | 390,672,373 | - Shares issuable from assumed conversion/vesting of OP Units decreased slightly, while long-term compensation shares/units increased[86](index=86&type=chunk) [Partially Owned Properties](index=25&type=section&id=Partially%20Owned%20Properties) This section provides an overview of Equity Residential's investments in partially owned properties, detailing their unit count, financial contributions, and associated debt as of March 31, 2025 [Overview of Partially Owned Properties](index=25&type=section&id=Overview%20of%20Partially%20Owned%20Properties) As of March 31, 2025, Equity Residential had investments in 18 partially owned properties, totaling 4,638 apartment units. Consolidated properties generated positive NOI, while unconsolidated properties, including projects completed but not yet stabilized, contributed to NOI and incurred interest expenses Partially Owned Properties Summary | Category | Total Properties | Total Apartment Units | Q1 2025 NOI Expense (in thousands) | Q1 2025 Interest Expense (in thousands) | Total Debt (in thousands) | | :------------------------------------ | :--------------- | :-------------------- | :--------------------------------- | :-------------------------------------- | :------------------------ | | CONSOLIDATED: Operating properties (stabilized) | 12 | 2,656 | $16,175 | $255 | $28,312 | | CONSOLIDATED: Projects Under Development | — | — | $(83) | — | — | | UNCONSOLIDATED: Projects Under Development | — | — | $26 | $91 | — | | UNCONSOLIDATED: Projects Completed Not Stabilized | 6 | 1,982 | $2,706 | $3,785 | $339,269 | | **Total Partially Owned Properties** | **18** | **4,638** | **$18,824** | **$4,131** | **$367,581** | - The company is currently developing one consolidated property (**440 units**) and two unconsolidated properties (**639 units**)[88](index=88&type=chunk)[89](index=89&type=chunk) - Partially owned consolidated and unconsolidated amounts are presented at **100%** of the project/property[89](index=89&type=chunk) [Development and Lease-Up Projects](index=26&type=section&id=Development%20and%20Lease-Up%20Projects) This section details Equity Residential's ongoing development and lease-up projects, including apartment unit counts, budgeted costs, and their current operational status and expected stabilization timelines [Current Development and Lease-Up Projects](index=26&type=section&id=Current%20Development%20and%20Lease-Up%20Projects) As of March 31, 2025, Equity Residential had 3,286 apartment units across various development and lease-up projects, with a total budgeted capital cost of over $1.3 billion. Several projects were completed and in lease-up, while others were under development, contributing a net positive NOI of $2.5 million in Q1 2025 Development and Lease-Up Projects Overview | Project Category | No. of Apartment Units | Total Budgeted Capital Cost (in thousands) | Total Book Value to Date (in thousands) | Total Debt (in thousands) | Q1 2025 NOI (in thousands) | | :------------------------------------ | :--------------------- | :----------------------------------------- | :-------------------------------------- | :------------------------ | :------------------------- | | CONSOLIDATED: Projects Under Development | 440 | $232,172 | $144,706 | — | $(83) | | CONSOLIDATED: Projects Completed Not Stabilized | 225 | $152,621 | $146,406 | — | $(145) | | UNCONSOLIDATED: Projects Under Development | 639 | $307,200 | $124,361 | — | $26 | | UNCONSOLIDATED: Projects Completed Not Stabilized | 1,982 | $623,918 | $612,571 | $339,269 | $2,706 | | **Total Development Projects** | **3,286** | **$1,315,911** | **$1,028,044** | **$339,269** | **$2,504** | - The consolidated project 'The Basin' in Wakefield, MA, is **57% complete** and expected to stabilize in **Q2 2027**[92](index=92&type=chunk) - The unconsolidated project 'Alexan Harrison' in Harrison, NY, is **100% complete**, **85% leased**, and **78% occupied**, with stabilization expected in **Q4 2025**[92](index=92&type=chunk) - All unconsolidated projects are partially funded with project-specific construction loans that are non-recourse to the Company[92](index=92&type=chunk) [Residential Capital Expenditures to Real Estate](index=27&type=section&id=Residential%20Capital%20Expenditures%20to%20Real%20Estate) This section outlines Equity Residential's residential capital expenditures for Q1 2025, distinguishing between recurring and NOI-enhancing investments across same store and non-same store properties [Q1 2025 Residential Capital Expenditures](index=27&type=section&id=Q1%202025%20Residential%20Capital%20Expenditures) In Q1 2025, Equity Residential invested $59.1 million in total consolidated residential capital expenditures, with $34.8 million allocated to recurring expenditures and $24.3 million to NOI-enhancing projects, including significant renovation expenditures Residential Capital Expenditures (Q1 2025) | Capital Expenditure Type | Same Store Properties (in thousands) | Non-Same Store Properties (in thousands) | Total Consolidated Properties (in thousands) | Same Store Avg. Per Apartment Unit | | :------------------------------------ | :----------------------------------- | :--------------------------------------- | :------------------------------------------- | :--------------------------------- | | Recurring Capital Expenditures | $31,149 | $3,620 | $34,769 | $413 | | NOI-Enhancing Expenditures: Renovation Expenditures | $18,848 | $2,939 | $21,787 | $250 | | NOI-Enhancing Expenditures: Other | $2,105 | $444 | $2,549 | $28 | | **Total Capital Expenditures to Real Estate** | **$52,102** | **$7,003** | **$59,105** | **$691** | - Renovation Expenditures on **608 same store apartment units** approximated **$31,000 per apartment unit** renovated in Q1 2025[96](index=96&type=chunk) - Other NOI-enhancing expenditures include sustainability, property-level technology, and Accessory Dwelling Units (ADU) spend[97](index=97&type=chunk) [Normalized EBITDAre Reconciliations](index=28&type=section&id=Normalized%20EBITDAre%20Reconciliations) This section provides reconciliations for Normalized EBITDAre, a key non-GAAP financial measure, and related credit ratios, offering insights into Equity Residential's operational cash flow and debt servicing capacity [Normalized EBITDAre and Credit Ratios](index=28&type=section&id=Normalized%20EBITDAre%20and%20Credit%20Ratios) Equity Residential's Normalized EBITDAre for the trailing twelve months ended March 31, 2025, was $1.847 billion, showing a slight increase from the prior year. Key credit ratios, including total and net debt to Normalized EBITDAre, improved, reflecting stronger credit strength Normalized EBITDAre Reconciliation | Metric (in thousands) | Trailing Twelve Months March 31, 2025 (in thousands) | Trailing Twelve Months December 31, 2024 (in thousands) | | :------------------------------------ | :------------------------------------ | :--------------------------------------- | | Net income | $1,030,741 | $1,070,975 | | EBITDA | $2,318,602 | $2,322,503 | | EBITDAre | $1,805,359 | $1,775,191 | | Normalized EBITDAre | $1,847,477 | $1,833,555 | Key Credit Ratios | Credit Ratio | March 31, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :---------------- | | Total debt to Normalized EBITDAre | 4.25x | 4.43x | | Net debt to Normalized EBITDAre | 4.21x | 4.38x | | Unencumbered NOI as a % of total NOI | 90.5% | 89.7% | - Normalized EBITDAre does not include adjustments for the company's share of partially owned unconsolidated entities or the minority partner's share of partially owned consolidated entities due to their immaterial size[101](index=101&type=chunk) [Adjustments from FFO to Normalized FFO](index=29&type=section&id=Adjustments%20from%20FFO%20to%20Normalized%20FFO) This section details the adjustments made to reconcile Funds From Operations (FFO) to Normalized FFO, highlighting non-recurring or non-operational items impacting the company's core performance metrics [Analysis of FFO to Normalized FFO Adjustments](index=29&type=section&id=Analysis%20of%20FFO%20to%20Normalized%20FFO%20Adjustments) Adjustments from FFO to Normalized FFO significantly decreased in Q1 2025 compared to Q1 2024, primarily due to a substantial reduction in insurance/litigation/environmental settlement or reserve expense, which was a major factor in the prior year FFO to Normalized FFO Adjustments | Adjustment Category (in thousands) | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Variance (in thousands) | | :----------------------------------------- | :------- | :------- | :------- | | Write-off of pursuit costs | $1,321 | $548 | $773 | | Debt extinguishment and preferred share redemption (gains) losses | $97 | $1,444 | $(1,347) | | Non-operating asset (gains) losses | $438 | $(6,106) | $6,544 | | Other miscellaneous items | $1,727 | $30,591 | $(28,864)| | **Adjustments from FFO to Normalized FFO** | **$3,583** | **$26,477**| **$(22,894)**| - The significant decrease in 'Other miscellaneous items' variance is largely attributable to a reduction in insurance/litigation/environmental settlement or reserve expense, which was **$30.48 million** in Q1 2024, primarily related to a reserve increase for litigation over late fees[104](index=104&type=chunk) [Normalized FFO Guidance and Assumptions](index=30&type=section&id=Normalized%20FFO%20Guidance%20and%20Assumptions) This section presents Equity Residential's Normalized FFO guidance for Q2 and full year 2025, along with key operating, transaction, debt, and capital expenditure assumptions supporting these projections [Q2 and Full Year 2025 Normalized FFO Guidance](index=30&type=section&id=Q2%20and%20Full%20Year%202025%20Normalized%20FFO%20Guidance) Equity Residential reaffirmed its full-year 2025 Normalized FFO guidance and provided Q2 2025 guidance, anticipating continued same store revenue growth and stable physical occupancy, alongside planned transaction activity and capital expenditures Normalized FFO Guidance and Assumptions | Guidance Metric | Q2 2025 | Full Year 2025 (no change from previous) | | :---------------------------------------------------- | :---------------- | :--------------------------------------- | | Expected Normalized FFO Per Share | $0.96 to $1.00 | $3.90 to $4.00 | | 2025 Same Store Assumptions: | | | | Physical Occupancy | | 96.2% | | Revenue change | | 2.25% to 3.25% | | Expense change | | 3.5% to 4.5% | | NOI change | | 1.4% to 3.0% | | 2025 Transaction Assumptions: | | | | Consolidated rental acquisitions | | $1.5B | | Consolidated rental dispositions | | $1.0B | | Transaction Accretion (Dilution) | | (25 basis points) | | 2025 Debt Assumptions: | | | | Weighted average debt outstanding | | $8.20B to $8.40B | | Interest expense, net (on a Normalized FFO basis) | | $313.5M to $319.5M | | Capitalized interest | | $12.6M to $13.6M | | 2025 Capital Expenditures to Real Estate Assumptions for Residential Same Store Properties: | | | | NOI-Enhancing Capital Expenditures | | $130.0M | | Recurring Capital Expenditures | | $165.0M | | Total Capital Expenditures | | $295.0M | | 2025 Other Guidance Assumptions: | | | | Property management expense | | $139.0M to $141.0M | | General and administrative expense | | $60.0M to $64.0M | | Income (loss) from investments in unconsolidated entities | | $(3.0M) to $1.0M | | Debt offerings | | $500.0M to $1.0B | | Weighted average Common Shares and Units - Diluted | | 391.5M | - The company expects to spend approximately **$95.8 million** for apartment unit Renovation Expenditures on approximately **2,900 Residential same store apartment units** at an average cost of approximately **$33,000 per unit** renovated in 2025[110](index=110&type=chunk) - Income (loss) from investments in unconsolidated entities primarily consists of the company's share of Lease-Up NOI and interest expense, net, from recently completed unconsolidated development projects[111](index=111&type=chunk) [Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms](index=31&type=section&id=Additional%20Reconciliations%20and%20Definitions%20of%20Non-GAAP%20Financial%20Measures%20and%20Other%20Terms) This section provides comprehensive definitions and reconciliations for Equity Residential's non-GAAP financial measures and other key industry terms, ensuring clarity and comparability of reported financial performance [Non-GAAP Financial Measures and Key Term Definitions](index=31&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Key%20Term%20Definitions) This section provides definitions and reconciliations for various non-GAAP financial measures and other key terms used by Equity Residential, including FFO, Normalized FFO, EBITDAre, Normalized EBITDAre, NOI, and specific capital expenditure categories. These measures are presented to offer supplemental insights into the company's operating performance, credit strength, and asset valuation, while acknowledging they are not substitutes for GAAP metrics - Non-GAAP financial measures and other terms are provided to help understand the business, but their definitions and calculations may differ from other REITs and should not be considered alternatives to GAAP measures[114](index=114&type=chunk) - FFO and Normalized FFO are recognized measures of performance in the real estate industry, useful for comparing operating performance by excluding gains/losses from sales, impairment write-downs, and real estate depreciation[136](index=136&type=chunk)[138](index=138&type=chunk) - EBITDAre and Normalized EBITDAre are supplemental measures for evaluating the company's ability to incur and service debt, providing a comparison of credit strength between periods or companies by excluding non-comparable items[128](index=128&type=chunk)[129](index=129&type=chunk) - NOI is the primary financial measure for evaluating apartment properties, defined as rental income less direct property operating expenses, and is helpful as a supplemental measure of operating performance[146](index=146&type=chunk) Key Financial Metrics Per Share | Metric | Q1 2025 Per Share | Q1 2024 Per Share | Q2 2025 Expected Per Share | 2025 Expected Per Share | | :-------------------------- | :---------------- | :---------------- | :------------------------- | :---------------------- | | EPS – Diluted | $0.67 | $0.77 | $0.49 to $0.53 | $3.00 to $3.10 | | FFO per share – Diluted | $0.94 | $0.87 | $0.95 to $0.99 | $3.87 to $3.97 | | Normalized FFO per share – Diluted | $0.95 | $0.93 | $0.96 to $1.00 | $3.90 to $4.00 |

Equity Residential (EQR) is slated to report first-quarter 2025 results after the closing bell on April 29. While the company’s quarterly results are likely to reflect growth in revenues, funds from operations (FFO) per share are expected to remain flat.In the last reported quarter, this Chicago, IL-based residential real estate investment trust (REIT) came up with an in-line performance in terms of normalized FFO per share. Results reflected healthy same-store revenue performance and high occupancy.Over th ...

Group 1 - The article emphasizes the potential of high-quality REITs (Real Estate Investment Trusts) with strong balance sheets to navigate the current high-interest-rate environment, suggesting that they may be long-term winners despite the apparent challenges [2]. Group 2 - The focus of iREIT+HOYA Capital is on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging, indicating a strategic approach to investment [1].

Industry Overview - The Zacks REIT and Equity Trust - Residential industry includes companies that own, develop, and manage various residential properties, generating revenues by renting spaces to tenants [3] - The industry is currently facing economic uncertainty, slower job growth, federal job cuts, and new tariffs, which are affecting consumer confidence and household formation, potentially dampening residential real estate demand [1][4] Current Market Conditions - Elevated supply in certain regions, particularly in the Sun Belt metros, is placing downward pressure on rents despite strong national demand [6][7] - Rental demand remains historically strong, supported by favorable demographics and the growing affordability gap between renting and homeownership [2][8] - The transition from renting to homeownership is challenging due to high mortgage rates, making renting a more viable option [9] Financial Performance - The Zacks Industry Rank for the REIT and Equity Trust - Residential industry is 158, placing it in the bottom 36% of around 250 Zacks industries, indicating dim near-term prospects [10][11] - The industry's funds from operations (FFO) per share estimates for 2025 and 2026 have been revised down by 4.8% and 4.5%, respectively, reflecting a loss of confidence in growth potential [12] Stock Market Performance - The industry has underperformed the broader Zacks Finance sector and the S&P 500 over the past year, returning 8% compared to the S&P 500's increase of 8.1% and the Finance sector's rally of 15.8% [14] - The industry is currently trading at a forward 12-month price-to-FFO ratio of 16.35X, higher than the Finance sector's 15.30X but lower than the S&P 500's 19.88X [16] Notable Companies - **Equity Residential**: Positioned to benefit from favorable apartment market conditions, with a strong presence in urban areas and a healthy balance sheet with nearly $1.95 billion of liquidity [18][20] - **Essex Property Trust**: Benefits from healthy demand in the West Coast market, where median household income has grown faster than rents, indicating potential for future rent growth [22][25] - **UMH Properties, Inc.**: Operates 141 manufactured home communities and has seen occupancy increases, with a rental home occupancy rate of 94.7% [27][29]

Equity Residential (EQR) shares ended the last trading session 8.2% higher at $66.86. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 11.4% loss over the past four weeks.The increased investor optimism in the stock can be attributed to President Donald Trump’s recent announcement to put a 90-day pause on the reciprocal tariff for most countries.This real estate investment trust is expected to post quarterly funds f ...

Core Viewpoint - Equity Residential (EQR) is positioned to benefit from its diversified portfolio in affluent markets, although challenges such as high supply of rental units and elevated interest expenses persist [1][9][10] Group 1: Financial Performance - EQR announced a 2.6% increase in its annualized dividend, raising it to 69.25 cents per share for Q1 2025 from 67.50 cents in the previous quarter [2] - The company has demonstrated solid cash flow generation, with a 3.15% growth in dividend payouts over the past five years [3] - Total same-store revenues are expected to grow between 2.25% and 3.25% year-over-year in 2025, with an estimated increase of 3% [5] Group 2: Strategic Initiatives - EQR is focusing on acquiring and developing properties in suburban areas where affluent renters are migrating, including new markets like Atlanta, GA, and Austin, TX [4] - The company is actively repositioning its portfolio by selling older properties and acquiring newer ones in high-demand submarkets, with 18 properties acquired in 2024 valued at approximately $1.6 billion [6] - Technology and organizational improvements are being leveraged to enhance operational efficiency and drive growth in net operating income (NOI), which is projected to increase by 2.5% year-over-year in 2025 [7] Group 3: Market Challenges - The company faces challenges in attracting renters due to a high volume of new rental unit deliveries in several markets, which may hinder rent growth [9] - Despite recent Federal Reserve rate cuts, high-interest rates remain a concern, with total debt at $5.8 billion and interest expenses rising by 4.8% to $49.6 million in Q4 2024 [10] Group 4: Market Position - EQR's shares have seen a slight increase of 0.1%, underperforming the industry average growth of 3.6% over the past three months, with analysts revising 2025 funds from operations (FFO) estimates downward to $3.98 per share [11]

Core Viewpoint - Equity Residential (EQR) has announced a 2.6% increase in its annualized dividend, reflecting its strong cash flow generation capabilities and solid portfolio performance [1][2]. Dividend Announcement - EQR will pay a dividend of 69.25 cents per share for Q1 2025, up from 67.50 cents in the previous quarter, resulting in an annualized dividend of $2.77 per share and an annualized yield of 3.95% based on a closing stock price of $70.17 on March 21, 2025 [1][2]. Shareholder Meeting - The annual meeting of shareholders is scheduled for June 26, 2025, indicating ongoing engagement with investors [2]. Financial Health - As of December 31, 2024, EQR has a liquidity position of nearly $1.95 billion and an unencumbered NOI percentage of 89.7%, showcasing a strong balance sheet and access to favorable debt market rates [4]. Portfolio and Market Position - EQR is well-positioned to benefit from its diversified portfolio in suburban markets with affluent tenants, supported by healthy demand for its apartments and strategic buyouts [3]. Recent Performance - Over the past three months, EQR shares have declined by 1.8%, contrasting with the industry growth of 2.9%, indicating potential challenges in market performance [5]. Comparisons with Peers - Other residential REITs such as Modiv Industrial, Inc. (MDV) and Elme Communities (ELME) are highlighted as better-ranked stocks, with MDV showing a projected FFO per share growth of 1.5% for 2025 [6][8].

Company Overview - Equity Residential (EQR) owns approximately 97.0% of the ERPOP partnership, which conducts its multifamily property business [28]. - The company operates in major U.S. markets including Boston, New York, Washington D.C., Southern California, San Francisco, and Seattle, with an expanding presence in Denver, Atlanta, Dallas/Ft. Worth, and Austin [32]. - As of December 31, 2024, the company owned 311 properties with a total of 84,249 apartment units [145]. - The total number of properties in the Company's portfolio as of December 31, 2024, was 311, comprising 84,249 apartment units [148]. Market Demand and Strategy - Demand for rental properties remains strong due to elevated single-family home ownership costs and positive household formation trends [34]. - The company targets Generation Z, Millennials, and Baby Boomers as key demographics for rental demand, with Generation Z comprising approximately 70 million individuals [39][40]. - EQR's investment strategy includes acquisitions, new developments, and renovations, focusing on balancing current cash flow with long-term capital appreciation [36]. - The company expects long-term positive trends in household formation and manageable competitive new supply in established markets, positioning the business well for the future [197]. Operational Efficiency and Technology - The company emphasizes operational efficiency and customer service, achieving strong physical occupancy and low turnover rates [42]. - EQR is a leader in property technology, utilizing innovations such as online leasing and data analytics to enhance customer experience and operational efficiency [43]. - The company relies on third-party vendors for information technology systems, which are critical for maintaining competitive advantages [124]. Employee Engagement and Culture - EQR employs approximately 2,500 individuals, fostering a culture of continuous learning and development to enhance employee capabilities [48][49]. - The 2024 employee engagement score is 77.4% favorability, with an inclusion index score of 84.4% [56]. - Over 60% of the workforce identifies as ethnically diverse, reflecting the company's commitment to diversity [10]. - The company actively promotes from within, with many senior leaders having risen from entry-level positions [60]. - The company emphasizes leadership development through tailored learning paths and various training programs [56]. - The company is committed to fostering a safe and inclusive workplace, believing that its strength lies in its differences [10]. Financial Performance - The Company reported diluted earnings per share/unit of $2.72 for the year ended December 31, 2024, compared to $2.20 in 2023, reflecting a 23.6% increase [177]. - Total net operating income (NOI) for 2024 was $2,018,282,000, up 3.6% from $1,947,275,000 in 2023 [179]. - Total rental income for 2024 was $2,980,108,000, an increase of 3.7% from $2,873,964,000 in 2023 [179]. - Cash flows from operating activities increased by approximately $40.8 million for the year ended December 31, 2024, primarily due to improvements in NOI [200]. - The Company has approximately $2.0 billion in readily available liquidity, with a strong balance sheet and limited near-term debt maturities [198]. Risks and Challenges - The company faces risks related to real estate technology investments, which may not materialize as expected, potentially leading to impairments of investments [76]. - Rising interest rates may increase costs and reduce asset valuations, affecting overall financial performance [87]. - Changes in rent control regulations could adversely affect operations and property values, limiting the company's ability to raise rents [96]. - The company is exposed to risks from pandemics and health crises, which could adversely affect its operations and financial condition [114]. - Cybersecurity incidents could disrupt operations and compromise confidential information, potentially harming the company's reputation and financial results [116]. Corporate Responsibility - The company is committed to corporate responsibility, focusing on sustainability and minimizing environmental impact through optimized capital investments [44][45]. - Corporate responsibility evaluations could impose additional costs and affect investor perceptions, potentially impacting capital allocation [80]. Legal and Compliance - The company is involved in various legal proceedings that could adversely affect its financial condition and operational results [127]. - The Company is involved in various legal proceedings related to antitrust allegations, with ongoing cases that may impact financial conditions [156]. - The company is subject to evolving compliance requirements under privacy laws, which may increase operational costs over time [123]. Debt and Capital Management - As of December 31, 2024, the Company had total debt of $8.12 billion, with 20.1% secured and 79.9% unsecured [213]. - The Company’s total investment in real estate was $30.0 billion, with $26.8 billion (89.4%) being unencumbered properties [210]. - The Company’s Consolidated Debt-to-Total Market Capitalization Ratio as of December 31, 2024, was 22.4% [221]. - The debt maturity schedule indicates that $1.00 billion (12.2%) is due in 2025, with significant amounts also maturing in subsequent years [214].