Equity Residential Stock to Report Q2 Earnings: What to Expect?

Core Viewpoint - Equity Residential (EQR) is expected to report growth in revenues and funds from operations (FFO) per share for Q2 2025, reflecting a positive performance amid current market conditions [2][11]. Company Performance - In the last reported quarter, Equity Residential achieved a normalized FFO per share of 95 cents, exceeding the Zacks Consensus Estimate of 93 cents, driven by increased same-store revenues and physical occupancy [3][11]. - Over the past four quarters, Equity Residential has surpassed the Zacks Consensus Estimate twice, with an average surprise of 0.80% [4]. Market Conditions - The U.S. apartment market showed resilience in Q2 2025, absorbing over 227,000 units, surpassing the peak leasing surge of 2021 and early 2022 despite economic uncertainties [5]. - National occupancy rates rose to 95.6% in June, a 140 basis point increase year over year, while rent growth remained muted at 0.19% [6]. - More than 535,000 units were completed in the past year, with approximately 108,000 delivered in Q2 2025, indicating a strong market capacity to absorb new supply [7]. Regional Insights - Tech-driven markets like San Francisco, San Jose, Boston, and New York gained momentum, while Sun Belt markets such as Dallas and Atlanta showed recovery. Conversely, tourism-dependent cities like Las Vegas and Orlando experienced slight declines [8]. Projections for Equity Residential - Equity Residential is projected to see a 2.06% growth in FFO per share and a 4.78% increase in revenue for Q2 2025, benefiting from high occupancy and strategic acquisitions [11]. - The Zacks Consensus Estimate for quarterly revenues stands at $769.26 million, indicating a 4.78% rise year over year, with expected same-store revenues and net operating income increasing by 1.8% [12]. - The company anticipates normalized FFO per share between 96 cents and $1.00 for Q2 2025, with the consensus estimate remaining unchanged at 99 cents for over three months [13]. Earnings Prediction - The current Earnings ESP for Equity Residential is -0.04%, indicating uncertainty regarding a surprise in FFO per share for the upcoming quarter [14][15].