Equity Residential (EQR)
NYSE:EQR
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Equity Residential
(NYSE:EQR)
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Rating:71Outperform
Price Target:
$68.00
â–²(11.22% Upside)
Action:UpgradedDate:02/06/26
The score is driven primarily by solid financial fundamentals and profitability, tempered by a TTM step-down in net income/free cash flow and moderate leverage. Earnings call guidance supports a steady 2026 outlook with high occupancy and expected supply improvement, but near-term pricing power and expense/interest headwinds remain key constraints. Technicals are neutral and valuation is supported by the dividend, though the P/E is not particularly cheap.
Positive Factors
High occupancy & low turnover
Sustained ~96% occupancy and record-low turnover materially reduce vacancy risk and leasing expense over time. Lower churn preserves rent rolls and cuts turnover-related CapEx, supporting steadier FFO, dividend coverage and cash conversion across the next several quarters.
Negative Factors
Moderate leverage and refinancing needs
Moderate-to-elevated leverage limits financial flexibility and heightens sensitivity to rising interest rates. Near-term refinancing and planned issuance expose the firm to funding cost volatility that could compress FFO, reduce buyback capacity, or force asset sales if credit conditions tighten.
Read all positive and negative factors
Positive Factors
Negative Factors
High occupancy & low turnover
Sustained ~96% occupancy and record-low turnover materially reduce vacancy risk and leasing expense over time. Lower churn preserves rent rolls and cuts turnover-related CapEx, supporting steadier FFO, dividend coverage and cash conversion across the next several quarters.
Read all positive factors
Equity Residential (EQR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.08B
Dividend Yield4.52%
Average Volume (3M)2.28M
Price to Earnings (P/E)21.3
Beta (1Y)0.63
Revenue Growth4.78%
EPS Growth24.74%
CountryUS
Employees2,500
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)1.00
Shares Outstanding377,547,120
10 Day Avg. Volume2,036,320
30 Day Avg. Volume2,280,177
Financial Highlights & Ratios
PEG Ratio2.43
Price to Book (P/B)2.16
Price to Sales (P/S)7.71
P/FCF Ratio18.53
Enterprise Value/Market Cap1.38
Enterprise Value/Revenue10.26
Enterprise Value/Gross Profit22.15
Enterprise Value/Ebitda13.60
Forecast
1Y Price Target
$69.39Price Target Upside13.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)1.33
Revenue Forecast (FY)$3.18B
Equity Residential Business Overview & Revenue Model
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 attrac...
How the Company Makes Money
Equity Residential generates revenue primarily through the leasing of residential apartments to tenants. The company earns rental income from its vast portfolio of properties, which includes both market-rate and affordable housing units. Additiona...
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 Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call presented a cautiously optimistic outlook. Management emphasized strong portfolio fundamentals—high occupancy (96.4%), record-low resident turnover, and outsized contributions from San Francisco and New York (≈30% of NOI)—alongside active capital allocation (>$300M buybacks in 2025 and $1.3B returned to shareholders). They provided constructive 2026 guidance (FFO/share midpoint +2.25%, blended rent growth 1.5%–3%) and a favorable supply backdrop (deliveries down ≈35% in 2026). Counterbalancing this were notable near-term challenges: late‑2025 deceleration in rent momentum, negative new-lease rates across most markets, pressure from high supply in expansion/Sunbelt markets, modest other-income misses, and interest/expense headwinds. Management is focused on selective development, dispositions of lower-return assets, and further automation to drive efficiency. Overall, the positives (occupancy, market concentration in strong markets, buybacks, cost control and supply improvement) outweigh the near-term headwinds, leaving a constructive but cautious tone for 2026.Positive Updates
High Portfolio Occupancy
Portfolio physical occupancy of 96.4% in Q4 2025 (portfolio-wide >96%, ~97% in key markets), driven by strong demand, high retention and fewer lease expirations, supporting revenue stability.
Negative Updates
Revenue Momentum Deceleration in Back Half of 2025
Stronger-than-expected rental growth in H1 2025 reversed with a broad deceleration in revenue momentum across most markets in H2 2025 (except SF and NY), particularly pronounced in highly supplied markets due to weaker job and consumer confidence.
Read all updates
Q4-2025 Updates
Positive
Negative
High Portfolio Occupancy
Portfolio physical occupancy of 96.4% in Q4 2025 (portfolio-wide >96%, ~97% in key markets), driven by strong demand, high retention and fewer lease expirations, supporting revenue stability.
Read all positive updates
Company Guidance
Equity Residential's 2026 guidance assumes a well‑occupied portfolio (portfolio-wide >96%, targeted to run ~96.4% with ~97% in some key markets) and blended same‑store rent growth of 1.5%–3% (midpoint reflecting a continuation of H2‑2025 demand), backed by an embedded 60 bps of revenue growth (including ~20 bps dilution from ~5,000 expansion units) and roughly +40 bps from other income (about a 10 bps bad‑debt improvement plus bulk‑internet growth). Management expects achieved renewal rates to stay near 4.5% (quotes ≈6%, >60% renewal take), a starting gain‑to‑lease of ~1.2%, historically low turnover, and only 7.4% of move‑outs due to home purchases. On costs, same‑store expense growth is guided to 3%–4% (midpoint ~20 bps lower than 2025), utilities to again outpace inflation (but less than the ~8% last year), bulk WiFi rollout (adding 64 properties to the 113 stood up in 2025) will add ~$6.8M (≈70 bps) to total expenses while contributing ~$6M to NOI in 2026 and ~$10M by end‑2027, and payroll—already a 1.1% 5‑year CAGR—should see another 5%–10% on‑site reduction over several years. Normalized FFO/share is bridged from $3.99 in 2025 to a $4.08 midpoint in 2026 (+2.25%) (consolidated lease‑ups +$0.06, other +$0.01), with interest expense a ~$0.05 headwind, transaction activity expected to be neutral to NFFO (reflecting $500M net sales in 2025, $300M repurchased and an assumed additional $200M buyback), year‑end net debt/normalized EBITDAre of 4.3x, and assumed debt issuance of $500M–$1B to refinance a $500M 2.85% note (Nov‑2026) and a $92M stub (Aug).Equity Residential Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.10B | 2.98B | 2.87B | 2.74B | 2.46B |
| Gross Profit | 1.44B | 1.89B | 1.83B | 1.75B | 1.52B |
| EBITDA | 2.34B | 1.84B | 1.78B | 1.71B | 1.46B |
| Net Income | 1.12B | 1.04B | 835.44M | 776.91M | 1.33B |
Balance Sheet | |||||
| Total Assets | 20.75B | 20.83B | 20.03B | 20.22B | 21.17B |
| Cash, Cash Equivalents and Short-Term Investments | 55.90M | 62.30M | 50.74M | 53.87M | 123.83M |
| Total Debt | 8.78B | 8.43B | 7.70B | 7.73B | 8.65B |
| Total Liabilities | 9.34B | 9.25B | 8.46B | 8.52B | 9.48B |
| Stockholders Equity | 11.04B | 11.04B | 11.09B | 11.17B | 10.95B |
Cash Flow | |||||
| Free Cash Flow | 1.29B | 1.25B | 1.20B | 1.22B | 1.09B |
| Operating Cash Flow | 1.65B | 1.57B | 1.53B | 1.45B | 1.26B |
| Investing Cash Flow | -321.36M | -1.18B | -409.50M | 107.79M | -434.62M |
| Financing Cash Flow | -1.33B | -376.95M | -1.12B | -1.79B | -565.06M |
Equity Residential Technical Analysis
Positive
61.14
Price Trends
60.98
Positive
60.57
Positive
61.43
Negative
Market Momentum
-0.02
Negative
57.98
Neutral
84.90
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 61.14 is above the 20-day moving average (MA) of 59.22, above the 50-day MA of 60.98, and below the 200-day MA of 61.43, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 57.98 is Neutral, neither overbought nor oversold. The STOCH value of 84.90 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $23.08B | 21.34 | 10.14% | 4.52% | 4.78% | 24.74% | |
70 Outperform | $23.78B | 38.46 | 8.88% | 3.83% | 7.06% | 12.05% | |
69 Neutral | $16.67B | 25.08 | 12.02% | 3.98% | 6.92% | 53.76% | |
68 Neutral | $15.15B | 36.36 | 7.64% | 4.42% | 0.91% | 6.55% | |
68 Neutral | $18.55B | 32.08 | 11.43% | 4.81% | 2.38% | 17.42% | |
66 Neutral | $14.08B | 19.02 | 8.50% | 3.90% | 1.41% | -21.93% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
EQR
Equity Residential
61.14
-2.91
-4.54%
AVB
AvalonBay
169.78
-23.60
-12.20%
MAA
Mid-America Apartment
126.39
-25.47
-16.77%
ESS
Essex Property
250.07
-12.07
-4.60%
UDR
UDR
35.11
-4.30
-10.92%
CPT
Camden Property
101.95
-4.86
-4.55%
Equity Residential Corporate Events
Private Placements and Financing
Equity Residential Secures New $2.5 Billion Credit Agreement
Neutral
Dec 4, 2025
On December 3, 2025, Equity Residential‘s ERP Operating Limited Partnership entered into a new $2.5 billion unsecured revolving credit agreement with Bank of America, replacing its existing facility set to mature in 2027. This new agreement,...
Business Operations and Strategy
Equity Residential Shares Investor Presentation Materials
Neutral
Dec 1, 2025
On December 1, 2025, Equity Residential announced that it has posted presentation materials on its website for upcoming investor meetings in December 2025. This move indicates the company’s efforts to engage with investors and provide transp...
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.