Download PDF

1. Company Snapshot

1.a. Company Description

Equity Residential is committed to creating communities where people thrive.The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract high quality long-term renters.Equity Residential owns or has investments in 305 properties consisting of 78,568 apartment units, located in Boston, New York, Washington, D.C., Seattle, San Francisco, Southern California and Denver.

Show Full description

1.b. Last Insights on EQR

Negative drivers behind Equity Residential's recent performance include the company's announcement of a leadership transition, with Chief Investment Officer Robert A. ("Bob") Garechana assuming the role of Executive Vice President and Chief Investment Officer, and Alexander ("Alec") Brackenridge transitioning to Executive Vice President – Investments and retiring at a later date. Additionally, the company's recent earnings release date announcement may indicate a potential delay in reporting its second quarter 2025 operating results, which could lead to increased uncertainty and volatility in the stock price.

1.c. Company Highlights

2. Equity Residential's Q3 2025 Earnings: A Mixed Bag

Equity Residential reported a solid Q3 2025, with revenues growing 2.2% on a blended basis, driven by a 6.2% year-over-year income growth for new residents. The company's EPS came in at $1.02, in line with estimates. The net operating income (NOI) growth was 2.1% to 2.6%, with same-store expenses held steady at 3.5% to 4%. The company's physical occupancy remained high at 96.3% for the quarter.

Publication Date: Oct -30

📋 Highlights
  • Resident Income Growth:: 6.2% YoY income growth for new residents, aligning with 2.7% unemployment for college-educated demographics.
  • Historic Retention:: 96%+ occupancy rates with record 3Q resident retention, driven by coastal markets like San Francisco and New York.
  • Guidance Adjustment:: Same-store revenue guidance cut 15 bps to 2.75%, reflecting weaker traffic in D.C. and macroeconomic uncertainty.
  • Capital Allocation:: $100M in stock repurchases in 3Q, prioritizing buybacks over acquisitions due to high private market cap rates (sub-5%).

Operational Highlights

The company reported the highest third-quarter resident retention in its history, maintaining high occupancy rates in the mid-96% range. San Francisco was the best-performing market, driven by the urban core, where the company has more exposure than competitors. The Seattle recovery story is showing improvement, but at a slower pace due to higher supply levels. Michael Manelis noted that the renewal rate remained strong, with nearly 59% of leases renewing, and the average length of stay increased by nearly 20% from 2019.

Guidance and Outlook

The company adjusted down the midpoint of its annual same-store revenue guidance by 15 basis points to 2.75%. The revised full-year same-store revenue outlook is 2.5% to 3%, with a midpoint of 2.75%. Same-store expenses were held steady at 3.5% to 4%. The company also reduced its same-store NOI range to 2.1% to 2.6% and maintained its normalized FFO per share estimate of $3.98 to $4.02. Analysts estimate next year's revenue growth at 3.5%.

Valuation and Dividend Yield

With a P/E Ratio of 19.83 and a Dividend Yield of 4.67%, Equity Residential's valuation appears reasonable. The company's P/B Ratio is 2.07, and its EV/EBITDA is 14.93. The ROE is 10.48%, indicating a decent return on equity. The Net Debt / EBITDA ratio is 4.14, suggesting a manageable debt burden.

Market Performance

The company's coastal markets, particularly San Francisco and New York, continue to drive growth. Michael Manelis expects a multi-year above-average growth environment in San Francisco, driven by technological advancements and income growth. In contrast, the Washington D.C. market is experiencing hesitancy in the renewal process, leading to lower new lease volume. However, the retention side has held strong, with a 95% occupancy rate in Northwest D.C. and a 95.5% rate in central D.C.

Capital Allocation

The company has repurchased $100 million of stock and plans to continue buying back shares at a meaningful scale. Bret McLeod mentioned that the company is selective and limited in its acquisition activity due to private market assets trading at sub-5% cap rates and at or above replacement cost, making the stock a compelling value at current levels.

3. NewsRoom

Card image cap

Analysts Set Equity Residential (NYSE:EQR) PT at $70.27

Dec -02

Source: defenseworld.net

Card image cap

8 'Safer' Dividend Buys In Barron's 23 Better November Bets Than T-Bills

Nov -28

Source: seekingalpha.com

Card image cap

Equity Residential (EQR) Up 4.5% Since Last Earnings Report: Can It Continue?

Nov -27

Source: zacks.com

Card image cap

Equity Residential: One Of America's Best Apartment REITs Is On Sale

Nov -20

Source: seekingalpha.com

Card image cap

ABC Arbitrage SA Buys Shares of 30,693 Equity Residential $EQR

Nov -12

Source: defenseworld.net

Card image cap

Bessemer Group Inc. Has $501,000 Stock Position in Equity Residential $EQR

Nov -03

Source: defenseworld.net

Card image cap

Head to Head Analysis: Equity Residential (NYSE:EQR) and Armada Hoffler Properties (NYSE:AHH)

Oct -30

Source: defenseworld.net

Card image cap

Equity Residential (EQR) Q3 2025 Earnings Call Transcript

Oct -29

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Acquisition, Development and Management of Multifamily Residential Properties

Expected Growth: 4.5%

Equity Residential’s strategic focus on high-quality apartment properties in urban and high-growth markets, drives growth. Proximity to employment centers, public transportation, and amenities fuels demand, supporting a strong outlook.

7. Detailed Products

Apartments for Rent

Equity Residential offers a wide range of apartments for rent, from studios to three-bedroom apartments, in various locations across the United States.

Luxury Apartments

Equity Residential's luxury apartments offer high-end amenities, modern designs, and premium finishes, providing an upscale living experience.

Student Housing

Equity Residential provides student housing options near top universities, offering a convenient and comfortable living environment for students.

Senior Living Communities

Equity Residential's senior living communities offer a supportive and engaging environment for seniors, with amenities and services tailored to their needs.

Corporate Housing

Equity Residential provides corporate housing solutions for businesses, offering furnished apartments and amenities tailored to the needs of business travelers and relocating employees.

8. Equity Residential's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Equity Residential is medium, as there are alternative options for renters, such as single-family homes and other apartment complexes.

Bargaining Power Of Customers

The bargaining power of customers for Equity Residential is low, as individual renters have limited negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Equity Residential is low, as the company has multiple suppliers for goods and services.

Threat Of New Entrants

The threat of new entrants for Equity Residential is medium, as there are barriers to entry, such as high capital requirements, but new companies can still enter the market.

Intensity Of Rivalry

The intensity of rivalry for Equity Residential is high, as there are many established competitors in the apartment rental market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.00%
Debt Cost 3.95%
Equity Weight 60.00%
Equity Cost 8.11%
WACC 6.45%
Leverage 66.67%

11. Quality Control: Equity Residential passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
VICI Properties

A-Score: 7.6/10

Value: 5.0

Growth: 7.7

Quality: 8.1

Yield: 10.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Simon Property Group

A-Score: 6.1/10

Value: 2.1

Growth: 3.9

Quality: 6.5

Yield: 9.0

Momentum: 6.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Public Storage

A-Score: 5.9/10

Value: 2.1

Growth: 5.8

Quality: 7.3

Yield: 8.0

Momentum: 2.5

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Equity Residential

A-Score: 5.8/10

Value: 3.8

Growth: 3.9

Quality: 6.6

Yield: 8.0

Momentum: 3.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
AvalonBay Communities

A-Score: 5.7/10

Value: 3.5

Growth: 4.8

Quality: 6.4

Yield: 7.0

Momentum: 3.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Iron Mountain

A-Score: 5.2/10

Value: 4.7

Growth: 4.1

Quality: 4.2

Yield: 7.0

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

61.06$

Current Price

61.06$

Potential

-0.00%

Expected Cash-Flows