Core Insights - Equity Residential (EQR) exceeded analyst funds from operations estimates in Q3 2025 due to reduced property management costs [1] - However, key metrics such as same-store revenue, expenses, net operating income, and blended lease spreads fell short of expectations [2] - EQR's new leases declined by 1% in Q3 2025, while blended rates increased by 2.2% [2] - Renewal rents showed a slight decrease, coming in at 4.5% compared to 4.6% a year ago [2] Financial Performance - EQR adjusted its same-store revenue guidance down by 15 basis points to 2.75% due to observed weaknesses in customer acquisition, particularly in Washington, D.C. [3] - Despite the challenges, EQR achieved its highest Q3 renewal rates ever, indicating some positive trends [4] Market Dynamics - Major coastal cities, which previously hindered apartment REIT performance, are now driving growth as workers return to urban areas [5] - Demand and resident retention remain strong in markets like San Francisco and New York, with San Francisco being highlighted as a key market for EQR [5][6] - Seattle also showed strength, although new supply has slowed its recovery compared to San Francisco [7]