Earnings Preview: What To Expect From Equity Residential's Report

Equity Residential Properties Trust logo on phone and website-by T_Schneider via Shutterstock

With a market cap of $25.5 billion, Equity Residential (EQR) is a leading real estate investment trust (REIT) specializing in high-quality apartment communities across premier U.S. urban markets. With a portfolio of over 84,000 units in cities like Boston, New York, and San Francisco, the company is also expanding its presence in Denver, Atlanta, and Austin.

EQR is expected to release its fiscal Q2 2025 earnings results after the market closes on Monday, Aug. 4. Ahead of this event, analysts project the Chicago, Illinois-based company to report a normalized FFO of $0.99 per share, a growth of 2.1% from $0.97 per share in the year-ago quarter. It has met or surpassed Wall Street's bottom-line estimates in the last four quarterly reports. 

For fiscal 2025, analysts forecast the REIT to report an NFFO of $3.97 per share, up 2.1% from $3.89 per share in fiscal 2024. Moreover, NFFO is expected to grow 4.8% year-over-year to $4.16 per share in fiscal 2026.

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Equity Residential stock has declined 1.8% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX11.5% gain and the Real Estate Select Sector SPDR Fund's (XLRE) nearly 4% return over the same time frame. 

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Despite reporting weaker-than-expected Q1 2025 revenue of $760.8 million on Apr. 29, EQR shares rose 1.1% the next day due to normalized FFO of $0.95 per share, beating the estimate and marking a 2.2% year-over-year increase. Investors were also encouraged by solid operating metrics, including a 2.4% increase in average rental rates to $3,160 and a 96.5% same-store physical occupancy rate, 20 basis points higher year-over-year and 40 bps sequentially. 

Additionally, the company reaffirmed its 2025 full-year NFFO guidance of $3.90 per share - $4 per share and projected strong same-store revenue growth of 2.3% - 3.3%.

Analysts' consensus view on Equity Residential stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 25 analysts covering the stock, 11 suggest a "Strong Buy," one gives a "Moderate Buy," and 13 recommend a "Hold." As of writing, the stock is trading below the average analyst price target of $76.78. 


On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.