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Equity Residential (EQR)
NYSE:EQR
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Equity Residential (EQR) AI Stock Analysis

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EQR

Equity Residential

(NYSE:EQR)

Rating:65Neutral
Price Target:
$69.00
â–²(7.01% Upside)
Equity Residential's overall stock score reflects strong financial performance and a positive earnings call outlook, particularly in key markets like New York and San Francisco. However, the lack of technical analysis data and moderate valuation metrics slightly offset these strengths. The company's strategic focus on AI and automation, along with a robust dividend yield, supports its long-term growth potential.
Positive Factors
Financial Performance
A strong 1.3% normalized FFO guidance raise is considered the best among peers.
Market Expansion
EQR has agreed to purchase 8 apartment complexes in Atlanta, GA containing 2,064 units for $535M, representing a high-4% in-place cap rate and a low-5% expected cap rate upon realization of EQR operating platform benefits.
Market Strategy
EQR issued $500M in 7-year unsecured notes, which demonstrates the company's ability to secure financing for future growth.
Negative Factors
Guidance Expectations
Maintained guidance is below Street expectations, suggesting that simply meeting guidance may not be sufficient this year.
Lease Growth
The market may view the -0.1% new lease growth in the quarter as modestly disappointing.
Regional Performance
EQR experienced weak demand in Southern California, with new lease rates down -3.2%.

Equity Residential (EQR) vs. SPDR S&P 500 ETF (SPY)

Equity Residential Business Overview & Revenue Model

Company DescriptionEquity Residential (EQR) is a real estate investment trust (REIT) focused on the acquisition, development, and management of residential properties primarily in urban and high-demand suburban markets across the United States. The company specializes in multifamily apartment communities, catering to a diverse demographic of renters. With a commitment to providing high-quality living spaces and excellent customer service, Equity Residential operates a portfolio that includes a wide range of amenities and services designed to enhance the tenant experience.
How the Company Makes MoneyEquity Residential generates revenue primarily through the leasing of residential units within its portfolio of apartment communities. The company earns rental income from tenants who occupy its properties, which constitutes the bulk of its revenue. Additionally, EQR may generate ancillary income through fees associated with parking, pet services, and other tenant amenities. The company's revenue model is bolstered by its focus on high-demand markets, which typically experience greater rental demand and the ability to implement rent increases. Furthermore, strategic partnerships with property management firms and local businesses may enhance its operational efficiency and tenant offerings, thereby contributing to its overall earnings.

Equity Residential Key Performance Indicators (KPIs)

Any
Any
Total Properties
Total Properties
Indicates the total number of properties owned, reflecting the company's scale, market presence, and potential rental income sources.
Chart InsightsEquity Residential's total properties have shown a notable increase in late 2024 after a period of stagnation, aligning with their strategic plan to acquire $1.5 billion in assets. The recent earnings call highlights strong occupancy and low resident turnover, indicating robust demand in key markets like New York and San Francisco. However, challenges such as economic uncertainties and potential rent control measures could impact future growth. The company's cautious optimism is supported by favorable supply-demand dynamics and the financial health of residents, positioning them well despite potential headwinds.
Data provided by:Main Street Data

Equity Residential Earnings Call Summary

Earnings Call Date:Jun 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong demand and retention rates across key markets, successful expansion in Atlanta, and promising AI initiatives. However, challenges were noted in Los Angeles and expansion markets due to job growth issues and new supply, along with reduced acquisition guidance.
Q2-2025 Updates
Positive Updates
Strong Resident Retention and Demand
Equity Residential reported high retention rates and strong demand across markets, with the unemployment rate for their key demographic, college-educated individuals, at 2.7%.
Expansion in Atlanta
The company expanded its presence in Atlanta by acquiring an 8-property portfolio, achieving economies of scale and operational efficiencies.
AI and Innovation Initiatives
Equity Residential's AI leasing application pilots reduced application completion time by over 50%, significantly improving fraud detection and resident underwriting.
New York and San Francisco Market Performance
New York and San Francisco showed strong revenue results with high occupancy and minimal new supply, with San Francisco experiencing a 5.8% blended rate growth.
Negative Updates
Challenges in Los Angeles
Los Angeles underperformed expectations due to weak job growth in the entertainment sector and quality of life issues.
Reduced Acquisition Guidance
Equity Residential lowered its acquisition expectations for the year from $1.5 billion to $1 billion due to competitive pricing and high cap rates.
Pressure from New Supply in Expansion Markets
Markets like Denver and Dallas faced high levels of new supply and concession use, impacting leasing growth and requiring a focus on retention.
Softening in Washington, D.C. Market
Washington, D.C. experienced a slowdown due to job uncertainty, with pressure in Northern Virginia and the District.
Company Guidance
In the second quarter of 2025, Equity Residential reported strong demand and resident retention, driven by a low unemployment rate of 4.2% and an even lower rate of 2.7% among college-educated individuals. The company observed a 3% blended rate growth, supported by a 5.2% renewal rate, with 60% of residents renewing their leases. Physical occupancy remained robust at 96.6%, despite a slight negative trend in new lease rates. The company also noted that only 7.2% of residents moved out to purchase homes, one of the lowest rates recorded. Equity Residential adjusted its acquisition expectations from $1.5 billion to $1 billion for the year due to competitive pricing, and it plans to match sales with acquisitions. Looking ahead, the company expects a blended rate growth range of 2.2% to 2.8% for the third quarter, with continued strong occupancy and low turnover setting up a favorable outlook for 2026, amid a significant anticipated drop in competitive supply.

Equity Residential Financial Statement Overview

Summary
Equity Residential shows strong financial stability with a debt-free balance sheet and robust cash flows. However, declining revenue and moderate net income margins present challenges for future growth.
Income Statement
72
Positive
The Gross Profit Margin for TTM is approximately 42.31%, indicating healthy profitability. However, the Net Profit Margin is lower at 27.94%, showing some pressure on net income. Revenue has decreased from $2.87 billion in 2023 to $2.19 billion TTM, reflecting a negative growth trend. The EBIT Margin is 30.02%, and the EBITDA Margin is 61.56%, both indicating efficiency in operations, though overall revenue contraction is a concern.
Balance Sheet
85
Very Positive
Equity Residential has a strong Balance Sheet with zero debt in the TTM period, showcasing excellent financial stability. The Equity Ratio stands at 53.00%, reflecting a stable capital structure. Return on Equity (ROE) is 5.56%, indicating moderate returns to shareholders. The lack of debt reduces financial risk significantly.
Cash Flow
78
Positive
The Operating Cash Flow to Net Income Ratio is 1.98, indicating strong cash generation relative to net income. However, the Free Cash Flow has decreased slightly from $1.20 billion in 2023 to $977 million TTM, showing a reduction in cash available after capital expenditures. The Free Cash Flow to Net Income Ratio is 1.59, suggesting good cash conversion.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.04B2.98B2.87B2.74B2.46B2.57B
Gross Profit1.68B1.89B1.83B1.75B1.52B1.66B
EBITDA2.01B1.84B1.78B1.71B1.46B1.61B
Net Income1.01B1.04B835.44M776.91M1.33B913.64M
Balance Sheet
Total Assets21.03B20.83B20.03B20.22B21.17B20.29B
Cash, Cash Equivalents and Short-Term Investments31.28M62.30M50.74M53.87M123.83M42.59M
Total Debt8.67B8.43B7.70B7.73B8.65B8.37B
Total Liabilities9.50B9.25B8.46B8.52B9.48B9.18B
Stockholders Equity11.01B11.04B11.09B11.17B10.95B10.53B
Cash Flow
Free Cash Flow1.23B1.25B1.20B1.22B1.09B1.10B
Operating Cash Flow1.54B1.57B1.53B1.45B1.26B1.27B
Investing Cash Flow-1.69B-1.18B-409.50M107.79M-434.62M663.59M
Financing Cash Flow145.95M-376.95M-1.12B-1.79B-565.06M-1.95B

Equity Residential Technical Analysis

Technical Analysis Sentiment
Negative
Last Price64.48
Price Trends
50DMA
65.88
Negative
100DMA
66.97
Negative
200DMA
68.52
Negative
Market Momentum
MACD
-0.38
Negative
RSI
48.38
Neutral
STOCH
69.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQR, the sentiment is Negative. The current price of 64.48 is above the 20-day moving average (MA) of 63.77, below the 50-day MA of 65.88, and below the 200-day MA of 68.52, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 48.38 is Neutral, neither overbought nor oversold. The STOCH value of 69.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EQR.

Equity Residential Risk Analysis

Equity Residential disclosed 47 risk factors in its most recent earnings report. Equity Residential reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Equity Residential Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$27.34B23.659.77%3.59%6.44%37.67%
70
Outperform
$12.84B101.593.74%4.41%2.29%-4.89%
68
Neutral
$15.46B75.973.30%3.76%0.76%-60.70%
66
Neutral
$17.65B21.3414.40%3.79%7.56%54.15%
66
Neutral
$17.12B29.259.58%4.22%1.19%10.52%
65
Neutral
$24.62B24.809.20%4.24%4.49%5.87%
63
Neutral
$7.00B13.45-0.52%6.98%3.61%-22.78%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EQR
Equity Residential
65.14
-6.14
-8.61%
AVB
AvalonBay
194.12
-21.96
-10.16%
MAA
Mid-America Apartment
144.42
-10.46
-6.75%
ESS
Essex Property
267.62
-20.34
-7.06%
UDR
UDR
38.98
-3.35
-7.91%
CPT
Camden Property
110.56
-9.13
-7.63%

Equity Residential Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Equity Residential Appoints Chris Carr as Trustee
Neutral
Jul 24, 2025

On July 24, 2025, Equity Residential announced the appointment of Chris Carr as a Trustee, expanding the Board of Trustees from 10 to 11 members. Carr, who is independent under NYSE standards, will serve on the Audit and Corporate Governance Committees. His appointment aligns with the company’s strategy to refresh its board with new perspectives while maintaining experienced oversight, having added five new trustees in the past six years.

The most recent analyst rating on (EQR) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on Equity Residential stock, see the EQR Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Equity Residential Elects Trustees at Annual Meeting
Neutral
Jul 1, 2025

On June 26, 2025, Equity Residential held its Annual Meeting of Shareholders where all ten nominees for Trustees were elected for a one-year term. Additionally, the shareholders ratified the selection of Ernst & Young LLP as the independent registered public accounting firm for 2025 and approved the executive compensation on an advisory basis.

The most recent analyst rating on (EQR) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on Equity Residential stock, see the EQR Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Equity Residential Announces Leadership Transition
Neutral
Jun 30, 2025

On June 30, 2025, Equity Residential announced a leadership transition with Alexander Brackenridge stepping down as Chief Investment Officer on August 7, 2025, and retiring at the end of the year. He will be succeeded by Robert A. Garechana, the current Chief Financial Officer, while Bret D. McLeod will join as the new Chief Financial Officer. These changes are part of the company’s strategic succession planning, aiming to continue advancing its capital allocation strategy and transformational initiatives.

The most recent analyst rating on (EQR) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on Equity Residential stock, see the EQR Stock Forecast page.

Business Operations and Strategy
Equity Residential to Present at Nareit REITweek 2025
Neutral
May 28, 2025

On May 28, 2025, Equity Residential announced its participation in the Nareit REITweek 2025 Investor Conference, with senior management, including CEO Mark J. Parrell, presenting at a roundtable on June 3. The company has also released an updated investor presentation with operating and transaction updates, available on their website.

The most recent analyst rating on (EQR) stock is a Hold with a $68.00 price target. To see the full list of analyst forecasts on Equity Residential stock, see the EQR Stock Forecast page.

Private Placements and FinancingBusiness Operations and StrategyRegulatory Filings and Compliance
Equity Residential Extends ATM Program for Flexibility
Neutral
May 15, 2025

On May 15, 2025, Equity Residential announced a continuation of its existing ATM Program, allowing for the sale of up to 13,000,000 common shares through a Distribution Agreement with several financial institutions. This strategic move is part of the company’s efforts to enhance its financial flexibility and operational capacity by leveraging forward sale agreements, although it will not initially receive proceeds from these transactions. The company also filed an automatic shelf registration statement to replace the one expiring on May 17, 2025, maintaining its ability to issue securities and manage its share repurchase program.

The most recent analyst rating on (EQR) stock is a Hold with a $68.00 price target. To see the full list of analyst forecasts on Equity Residential stock, see the EQR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 14, 2025