Equity Residential Stock Earnings Reports

Equity Residential reported resilient Q3 2025 results with high occupancy (mid-96% range) and record third-quarter resident retention driven by strong renewals and rising resident incomes (+6.2% YoY for new residents). Performance was strongest in San Francisco and New York, where limited new supply and robust demand (including AI-related tech hiring) produced outsized results; San Francisco is expected to be the best-performing market in 2025. Some seasonal leasing activity pulled forward this year and new-lease pricing softened late in Q3 (notably Washington, D.C.), which led management to lower the midpoint of full-year same-store revenue guidance to 2.75%. Same-store expense guidance remains 3.5%–4.0%; same-store NOI midpoint raised to 2.35% (up 15 bps from original guidance but down 15 bps from Q2 midpoint). NFFO guidance tightened to $3.98–$4.02 per share (midpoint unchanged at $4.00). Capital allocation: management repurchased ~ $100 million of stock in Q3 and trimmed 2025 acquisitions and dispositions guidance to $750 million each, prioritizing buybacks and selective asset sales given attractive public-market valuation versus private-market transaction cap rates (~5%). Management emphasized a favorable 2026 supply backdrop (company tracking shows a ~35% decline in competitive new supply across its markets, and a ~65% drop in D.C.) that sets up potential earnings upside if job growth re-accelerates. Operational initiatives include AI-driven leasing and service tools that are reducing application times and improving productivity.