Equity Residential Reports Mixed Results Amid Stagnant Market Performance
Equity Residential (EQR), a real estate investment trust (REIT), holds a market capitalization of $26.6 billion and is headquartered in Chicago, Illinois. The company specializes in the acquisition, development, and management of residential properties in urban areas and their suburbs.
As a large-cap stock, defined as companies valued at $10 billion or more, Equity Residential meets the criteria with a significant portfolio. The REIT operates or has interests in 312 properties comprising 84,018 apartment units. Its primary revenue source is the leasing of these apartments, generating rental and related income.
Recent Performance Review
Currently, Equity Residential has faced challenges in the market, having fallen 11.5% from its 52-week high of $78.83. In contrast, shares have decreased by 1.6%, underperforming relative to the Fidelity MSCI Real Estate Index ETF (FREL), which has risen by 2.9%.
Long-term performance illustrates a decline of 2.2% year-to-date for EQR, which lags slightly behind FREL’s gain of 2.3%. Nevertheless, over the past 52 weeks, EQR shares have increased nearly 12%, outperforming FREL’s 7.8% return in the same period.
Despite some recent volatility, the stock has mostly traded above its 50-day and 200-day moving averages since last year.
Fourth Quarter and Future Projections
EQR’s shares experienced a slight increase following its fourth-quarter 2024 revenue report, which surpassed expectations at $766.8 million on February 3. Additionally, the company reported an earnings per share (EPS) of $1.10, significantly exceeding analyst consensus estimates. In fiscal 2024, Equity Residential acquired 18 new properties, adding 5,373 rental units, while its normalized funds from operations (FFO) stood at $392.1 million, or $1 per share.
Looking ahead, for the full year 2025, EQR anticipates its normalized FFO per share to range from $3.90 to $4. The company also expects same-store revenue growth of between 2.3% and 3.3%.
Industry Comparisons
In comparison, rival Equity LifeStyle Properties, Inc. (ELS) has shown a smaller growth rate, with a 4.9% increase over the past year. However, ELS shares have outperformed EQR on a year-to-date basis, climbing 3.2%.
Despite EQR’s stronger performance over the last year, analysts express cautious optimism about its outlook. The stock holds a consensus rating of “Moderate Buy” from the 27 analysts covering it, and as of this report, Equity Residential is trading below the average price target of $77.74.
On the date of publication,
Sohini Mondal
did not hold any positions in the securities mentioned in this article. The information and data in this article are for informational purposes only. For more details, please refer to the Barchart Disclosure Policy.
here.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
