Equity Residential (EQR) Nareit REITweek: 2025 Investor Conference summary

Operational performance and portfolio strategy

• Operations are running ahead of initial expectations, with strong performance in the residential business and a positive outlook for the year.

• An eight-property portfolio in Atlanta is being acquired for $535 million at a 5.1% forward cap rate, funded by dispositions of older coastal assets.

• The Atlanta acquisition brings the market to 22 assets and over 4% of NOI, with meaningful FFO contribution expected from year two onward.

• Dispositions of $350 million in older assets have already occurred, with more properties under contract or in marketing.

• The company is balancing regulatory and resilience risks by diversifying across 12 high-quality markets, focusing on higher-earning residents.

Market fundamentals and demand drivers

• Declining supply across all markets, especially in coastal and select Sunbelt cities, is expected to support strong fundamentals over the next 3-5 years.

• Demand is driven by millennials staying longer and Gen Z entering the rental market, with the rentership pool projected to be 7% larger by 2030.

• Homeownership move-outs are at an all-time low, with only 8% of residents leaving to buy homes due to high costs and changing social preferences.

• Urban markets like New York, San Francisco, and Seattle are experiencing strong recoveries, with high occupancy and pricing power.

• The company’s urban concentration and efficient expense management are seen as key competitive advantages.

Regional market updates

• San Francisco and Seattle are seeing robust post-COVID recoveries, with strong application volume, pricing power, and improved quality of life.

• DC remains resilient despite negative headlines, with over 97% occupancy and no signs of financial stress among residents.

• New York is exceeding expectations with strong demand and no supply pressure, while Boston has rebounded after a slow leasing start.

• Southern California shows mixed results: Orange County and San Diego are stable, while LA is just starting to see demand pick up in some submarkets.

• Expansion markets like Atlanta, Dallas, Austin, and Denver are favored for job growth, high housing costs, and regulatory balance.