Equity Residential(EQR) - 2025 Q3 - Quarterly Results

Financial Performance - The Company reported Q3 2025 EPS of $0.76, a 100.0% increase from $0.38 in Q3 2024[7] - Funds from Operations (FFO) per share for Q3 2025 was $1.05, up 6.1% from $0.99 in Q3 2024[7] - Full year 2025 EPS guidance was revised to $2.52 to $2.56, down from the previous range of $2.96 to $3.02[11] - Full year 2025 FFO per share guidance was adjusted to $3.98 to $4.02, down from $4.03 to $4.09[11] - The actual EPS for Q3 2025 was $0.76, while the Q4 2025 EPS guidance midpoint is $0.61, primarily due to lower expected property sale gains[28] - The actual FFO for Q3 2025 was $1.05 per share, with Q4 2025 FFO guidance midpoint at $1.03 per share, mainly due to lower expected non-operating asset gains[28] - The normalized FFO for Q3 2025 was $1.02 per share, with Q4 2025 normalized FFO guidance midpoint at $1.04 per share, reflecting a net positive impact of $0.02 from residential same store NOI and lease-up NOI[29] - Net income for the nine months ended September 30, 2025, was $760,451, up from $637,104 in 2024, representing an increase of about 19.3%[34] - FFO available to common shares and units for the nine months ended September 30, 2025, was $1,161,767, compared to $1,090,203 in 2024, reflecting an increase of approximately 6.5%[37] Revenue and Expenses - Same store revenues increased by 3.0% in Q3 2025 compared to Q3 2024, while same store expenses rose by 3.6%[10] - Total revenues for the nine months ended September 30, 2025, were $2,312,048, compared to $2,213,329 for the same period in 2024, indicating a year-over-year increase of approximately 4.5%[34] - Total Same Store Operating Expenses for Q3 2025 increased by 3.6% to $234,572,000 compared to Q3 2024[76] - Total Same Store Operating Expenses for the nine months ended September 30, 2025, increased by 3.9% to $691,712,000 compared to the same period in 2024[77] - Real estate taxes rose by 2.1% to $93,747,000 in Q3 2025, accounting for 40.0% of total operating expenses[76] Property Management and Operations - The Company achieved the highest third quarter resident retention rate in its history during Q3 2025[10] - The occupancy rate for Q3 2025 was 96.3%, slightly up from 96.1% in Q3 2024[48] - The company owns and manages 318 rental properties with a total of 86,320 apartment units, primarily concentrated in major coastal markets and high-growth metro areas[30] - Same Store Residential Revenues for Q3 2025 reached $701,383, a 3.0% increase compared to Q3 2024's $681,200[55] - The total number of Same Store Apartment Units was 75,473, with an average occupancy rate of 96.3% in Q3 2025[63] Acquisitions and Dispositions - A 375-unit property in Arlington, TX was acquired for approximately $103.0 million during Q3 2025[10] - The Company sold two properties for a total of approximately $247.9 million during Q3 2025[10] - The company disposed of 2 consolidated rental properties for a total sales price of $247,850 during Q3 2025, with a yield of (5.1%) on those properties[44] Debt and Capital Expenditures - Total liabilities increased to $9,600,034 as of September 30, 2025, compared to $9,249,829 on December 31, 2024, marking a rise of 3.8%[39] - The total debt balance as of September 30, 2025, was $8,435,787,000, with 81.1% being unsecured debt[83] - The weighted average interest rate on total debt as of September 30, 2025, was 3.76%[83] - Total capital expenditures to real estate were $234,059,000, averaging $2,688 per apartment unit[109] - Recurring capital expenditures amounted to $135,335,000, with $119,349,000 for same-store properties and $15,986,000 for non-same-store properties[109] Future Guidance and Expectations - The company expects fourth quarter 2025 EPS guidance to be between $0.59 and $0.63[27] - The company anticipates potential risks including changes in market conditions, job growth rates, and competition, which may impact future performance[31] - The company plans to spend approximately $90.0 million on renovation expenditures for about 2,850 residential same-store apartment units, averaging $31,500 per unit[125] - Revenue change for 2025 is anticipated to be between 2.5% and 3.0%, while expense change is projected to be between 3.5% and 4.0%[124] Market and Economic Conditions - The company experienced an unrealized loss on investment securities of $(25,399) in Q3 2025, compared to $(14,135) in Q2 2025, indicating increased volatility[115] - The company reported a write-off of pursuit costs amounting to $9,372 in Q3 2025, compared to $5,834 in Q2 2025, an increase of 60%[119] - The company maintains compliance with its unsecured debt covenants for all periods presented[136]