Core Insights - Equity Residential reported Q2 2025 earnings with GAAP EPS of $0.50, exceeding analyst expectations of $0.34 by $0.16, primarily due to property sale gains [1][5] - Revenue reached $768.8 million, a 4.7% increase from the previous year, but slightly below consensus estimates [1][5] - Funds from operations (FFO) per share increased to $0.98, with normalized FFO at $0.99 per share [1][5] Financial Performance - Q2 2025 GAAP EPS was $0.50, up 6.4% from $0.47 in Q2 2024 [2] - Normalized FFO per share rose 2.1% from $0.97 in Q2 2024 to $0.99 in Q2 2025 [2] - FFO per share increased 4.3% from $0.94 in Q2 2024 to $0.98 in Q2 2025 [2] - Revenue for Q2 2024 was $734.2 million, indicating a year-over-year growth of 4.9% [5] Operational Highlights - Weighted average occupancy rate reached 96.6% in the same-store portfolio, exceeding internal projections [6] - Same-store revenue increased by 2.7%, while expense growth was 3.7%, leading to a net operating income (NOI) growth of 2.3% [6] - Leasing trends showed a blended lease rate increase of 3.0%, driven by a 5.2% growth in renewal rates [9] Geographic Performance - San Francisco reported a revenue growth of 4.5% with occupancy exceeding 97% [7] - New York also experienced strong revenue and occupancy improvements [7] - Expansion markets like Denver faced declines in revenue and occupancy due to new housing supply [7] Strategic Initiatives - The company acquired eight apartment properties in suburban Atlanta for $533.8 million and sold one Seattle property for $121.0 million [8] - Management adjusted guidance to reflect a net-neutral capital allocation approach for FY2025, balancing $1.0 billion in acquisitions with $1.0 billion in sales [8] - The company continues to invest in technology to enhance operational efficiency and streamline the resident experience [12] Outlook and Guidance - Management raised full-year 2025 guidance for EPS, FFO per share, and normalized FFO per share, with FFO per share now expected to range from $4.03 to $4.09 [15] - Same-store NOI growth is expected between 2.2% and 2.8%, with physical occupancy forecasted to be 96.4% [15] - Expense guidance was slightly lowered, with the range revised to 3.5% to 4.0% [16]