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Equity Residential
(NYSE:EQR)
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Rating:71Outperform
Price Target:
$71.00
â–²(13.27% Upside)
Action:Reiterated
Date:06/23/26
The score is driven primarily by strong underlying financial performance (notably cash generation and solid profitability) and a generally constructive earnings outlook with high occupancy, improving pricing trends, and active capital returns. Offsetting this are weak near-term technical momentum, a less compelling valuation due to a higher P/E despite a strong dividend yield, and event risk from the antitrust settlement alongside integration uncertainty tied to the announced merger.
Positive Factors
Cash generation & FCF
Operating cash flow exceeding net income and solid free cash flow coverage indicate durable earnings quality and strong cash conversion. This underpins reliable dividend funding, enables continued share buybacks and disciplined capex, and provides flexibility to fund development or acquisitions across market cycles.
Negative Factors
Rising leverage
Leverage drifting higher reduces financial flexibility and increases sensitivity to rising rates or mark-to-market valuation pressure. A tighter equity cushion can constrain capital allocation choices (buybacks, development) and amplify downside in a funding-stressed environment over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & FCF
Operating cash flow exceeding net income and solid free cash flow coverage indicate durable earnings quality and strong cash conversion. This underpins reliable dividend funding, enables continued share buybacks and disciplined capex, and provides flexibility to fund development or acquisitions across market cycles.
Read all positive factors
Equity Residential Key Performance Indicators (KPIs)
Any
Total Properties
Indicates the total number of properties owned, reflecting the company's scale, market presence, and potential rental income sources.
Indicates the total number of properties owned, reflecting the company's scale, market presence, and potential rental income sources.
Data provided by:
The Fly
The FlyEquity Residential (EQR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.17B
Dividend Yield4.52%
Average Volume (3M)3.20M
Price to Earnings (P/E)27.7
Beta (1Y)0.54
Revenue Growth4.66%
EPS Growth-4.42%
CountryUS
Employees2,500
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)2.52
Shares Outstanding374,712,160
10 Day Avg. Volume3,334,061
30 Day Avg. Volume3,200,946
Financial Highlights & Ratios
PEG Ratio2.41
Price to Book (P/B)2.16
Price to Sales (P/S)7.71
P/FCF Ratio18.53
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue10.52
Enterprise Value/Gross Profit22.71
Enterprise Value/Ebitda14.21
Forecast
1Y Price Target
$71.46Price Target Upside14.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)1.48
Revenue Forecast (FY)$3.16B
Equity Residential Business Overview & Revenue Model
Company Description
Equity Residential is committed to cultivating vibrant living environments where residents can flourish. This S&P 500 firm specializes in the acquisition, development, and ongoing management of rental properties, strategically located within or ne...
How the Company Makes Money
Equity Residential generates the majority of its revenue from operating multifamily apartment communities. Its primary revenue stream is residential rental income (base rent) paid by tenants under apartment leases. The company also earns ancillary...
Equity Residential Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call presents a generally constructive operational picture driven by very strong performance in flagship gateway markets (San Francisco and New York), high occupancy (~96.3%), lower concession usage (~21% YoY reduction), improving blended rate momentum (Q1 blended +1.5% and ~130 bps sequential improvement), and active capital allocation ($500M of buybacks since Aug 2025 and $165M disposition guidance). Offsetting this optimism are underperformance and slower starts in specific markets (Boston, Seattle, parts of Southern California and newer Sunbelt expansion markets), ongoing expense headwinds (utilities, snow removal, liability insurance), continued elevated concessions in some expansion markets, regulatory risks (Massachusetts, D.C.), and competitive acquisition markets. On balance, management’s positive outlook for the back half of 2026 (declining new supply, improving demand signals, and momentum into peak leasing season) and clear operational progress lead to a favorable assessment.Positive Updates
High Occupancy and Improving Operating Momentum
Portfolio physical occupancy at 96.3% (described as >96%), with strong same-store revenue performance driven by San Francisco and New York. Management highlighted record low turnover and strong renewal activity tied to limited owned housing choices.
Negative Updates
Mixed Market Performance — Boston and Seattle Weakness
Boston had a slower-than-expected start (severe winter weather and life-science funding weakness) and Seattle lagged due to absorption of 2025 deliveries and lack of AI-driven demand; both markets trailed expectations in Q1.
Read all updates
Q1-2026 Updates
Positive
Negative
High Occupancy and Improving Operating Momentum
Portfolio physical occupancy at 96.3% (described as >96%), with strong same-store revenue performance driven by San Francisco and New York. Management highlighted record low turnover and strong renewal activity tied to limited owned housing choices.
Read all positive updates
Company Guidance
Equity guided that 2026 deliveries in its markets should be about 35% lower versus 2025 (D.C. expected to deliver ~4,000 units, down >65%), and with physical occupancy at 96.3% (>96%) and net effective prices up just over 4% since Jan 1, management expects a sequential build in new‑lease change in Q2 and continued strong retention; Q1 blended rate growth was 1.5% (a 130 bps sequential improvement vs. Q4‑2025) driven by a ~260 bps lift in new‑lease change and a ~30 bps improvement in achieved renewal increases, April blends ran near 3%. For the full year they maintained blended growth guidance of roughly 1.5%–3.0% (implying roughly flat new leases and renewals of ~4.5%–4.75%), expect concessions to be down about 20% for the year (concessions were ~21% lower portfolio‑wide in Q1 and down ~22% in Seattle; downtown San Francisco concessions are virtually nonexistent), and reiterated capital plans including ~$165M of disposition guidance and continued buybacks ( $220M repurchased in Q1, $500M since Aug‑2025); they also expect ~60% of the portfolio live on bulk internet by year‑end.Equity Residential Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.12B | 3.10B | 2.98B | 2.87B | 2.74B | 2.46B |
| Gross Profit | 1.45B | 1.44B | 1.89B | 1.83B | 1.75B | 1.52B |
| EBITDA | 2.31B | 2.34B | 1.84B | 1.78B | 1.71B | 1.46B |
| Net Income | 953.58M | 1.12B | 1.04B | 835.44M | 776.91M | 1.33B |
Balance Sheet | ||||||
| Total Assets | 20.52B | 20.75B | 20.83B | 20.03B | 20.22B | 21.17B |
| Cash, Cash Equivalents and Short-Term Investments | 34.68M | 55.90M | 62.30M | 50.74M | 53.87M | 123.83M |
| Total Debt | 8.64B | 8.78B | 8.43B | 7.70B | 7.73B | 8.65B |
| Total Liabilities | 9.50B | 9.34B | 9.25B | 8.46B | 8.52B | 9.48B |
| Stockholders Equity | 10.67B | 11.04B | 11.04B | 11.09B | 11.17B | 10.95B |
Cash Flow | ||||||
| Free Cash Flow | 1.27B | 1.29B | 1.25B | 1.20B | 1.22B | 1.09B |
| Operating Cash Flow | 1.62B | 1.65B | 1.57B | 1.53B | 1.45B | 1.26B |
| Investing Cash Flow | -510.86M | -321.36M | -1.18B | -409.50M | 107.79M | -434.62M |
| Financing Cash Flow | -1.12B | -1.33B | -376.95M | -1.12B | -1.79B | -565.06M |
Equity Residential Technical Analysis
Positive
62.68
Price Trends
65.36
Positive
62.86
Positive
61.38
Positive
Market Momentum
0.92
Negative
68.48
Neutral
91.04
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQR, the sentiment is Positive. The current price of 62.68 is below the 20-day moving average (MA) of 66.51, below the 50-day MA of 65.36, and above the 200-day MA of 61.38, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 68.48 is Neutral, neither overbought nor oversold. The STOCH value of 91.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EQR.
Equity Residential Risk Analysis
Equity Residential disclosed 45 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $27.52B | 24.03 | 9.72% | 3.83% | 2.35% | 0.24% | |
76 Outperform | $21.57B | 27.76 | 14.90% | 4.81% | 2.15% | 312.38% | |
72 Outperform | $19.82B | 33.52 | 10.35% | 3.98% | 5.27% | -14.94% | |
71 Outperform | $26.17B | 27.71 | 8.71% | 4.52% | 4.66% | -4.42% | |
68 Neutral | $16.97B | 43.09 | 6.78% | 4.42% | 0.77% | -31.36% | |
67 Neutral | $15.85B | 32.75 | 8.86% | 3.90% | 1.45% | 230.03% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
EQR
Equity Residential
69.83
5.99
9.38%
AVB
AvalonBay
193.96
-0.77
-0.39%
MAA
Mid-America Apartment
142.19
-1.31
-0.91%
ESS
Essex Property
298.33
25.61
9.39%
UDR
UDR
41.09
2.04
5.22%
CPT
Camden Property
117.25
8.33
7.65%
Equity Residential Corporate Events
Executive/Board ChangesShareholder Meetings
Equity Residential Shareholders Back Trustees, Auditor and Pay
Positive
Jun 22, 2026
Equity Residential reported the results of its June 18, 2026 annual meeting of shareholders, where investors elected all ten trustee nominees to one-year terms expiring at the 2027 meeting. The voting outcomes, including minimal opposition to most...
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Equity Residential advances AvalonBay merger, names leadership
Positive
Jun 8, 2026
Equity Residential and AvalonBay Communities, both large U.S. apartment REITs, are moving ahead with their previously announced all-stock merger of equals, first disclosed on May 21, 2026, to create a dual-headquartered landlord with more than 180...
Business Operations and StrategyExecutive/Board ChangesDividendsM&A TransactionsPrivate Placements and Financing
Equity Residential Announces Merger with AvalonBay Communities
Positive
May 21, 2026
On May 20, 2026, Equity Residential and AvalonBay Communities agreed to merge in an all‑stock, merger‑of‑equals transaction that will create a multifamily REIT with a pro forma equity market capitalization of about $52 billion, a...
Financial DisclosuresLegal Proceedings
Equity Residential Reaches $56 Million Antitrust Settlement Agreement
Negative
Apr 15, 2026
Equity Residential has agreed to a $56 million settlement, signed on April 13, 2026, to resolve consolidated class action claims alleging it participated, alongside RealPage, Inc. and other large multifamily landlords, in antitrust violations tied...
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.