Equity Residential (EQR) Q1 2025 earnings summary

Executive summary

• Q1 2025 results exceeded expectations, driven by strong demand and favorable operating metrics in core urban markets such as New York, Washington, D.C., San Francisco, and Seattle.

• The company operates 312 properties with 84,648 apartment units as of March 31, 2025, and owns approximately 97% of ERP Operating Limited Partnership.

• No changes were made to full-year guidance amid heightened economic uncertainty from tariffs, government actions, and macroeconomic conditions.

• The company remains well-positioned for the primary leasing season, supported by strong cash flow, a robust balance sheet, and favorable supply-demand dynamics in rental housing.

• Completed the sale of two consolidated rental properties and one land parcel, and delivered three development projects totaling 945 units in New York, Denver, and San Francisco.

Financial highlights

• Q1 2025 rental income was $760.8 million, up 4.1% from $730.8 million in Q1 2024.

• Net income attributable to controlling interests was $256.6 million, down from $295.8 million in Q1 2024, with diluted EPS at $0.67 compared to $0.77 in Q1 2024.

• Funds from Operations (FFO) available to Common Shares and Units was $368.9 million, up from $338.4 million in Q1 2024; Normalized FFO was $372.5 million, up from $364.9 million.

• Same-store revenue growth surpassed expectations, with 2.2% year-over-year growth, 96.5% physical occupancy, and record-low resident turnover of 7.9%.

• Blended lease rate increased 1.8% for the quarter, at the midpoint of the expected range.

Outlook and guidance

• Guidance for $1.5 billion in acquisitions and $1 billion in dispositions for 2025 remains unchanged.

• Q2 2025 guidance: EPS $0.49–$0.53, FFO per share $0.95–$0.99, Normalized FFO per share $0.96–$1.00.

• Full-year 2025 Normalized FFO guidance unchanged at $3.90–$4.00 per share; same store revenue growth expected at 2.25%–3.25%, expense growth 3.5%–4.5%, NOI growth 1.4%–3.0%.

• Expectation for blended rate growth of 2.8-3.4% in Q2, with stable retention and occupancy.

• Expansion markets expected to see muted performance in the first half, with potential for revenue growth in late 2025 and into 2026 as new supply is absorbed.