Equity Residential (EQR) Q3 2024 earnings summary

Executive summary

• Delivered strong operational and financial performance in Q3 2024, with high occupancy (96.1%), robust demand, and limited new supply in established markets, which comprise the majority of the portfolio.

• Portfolio expanded to 84,018 apartment units across 312 properties, following acquisitions in Atlanta, Dallas/Ft. Worth, Denver, and other expansion markets, funded by $600M in unsecured notes at 4.65% and asset dispositions.

• Same store NOI grew 2.5%–3.7% year-over-year, with Normalized FFO per share up 4% YTD to $2.89 and Q3 2024 EPS at $0.38.

• Strategic focus on balancing coastal and select Sunbelt markets, optimizing long-term returns, and reducing volatility.

• Liquidity remains strong with $1.7B in available capacity and a conservative balance sheet.

Financial highlights

• Q3 2024 Normalized FFO per share was $0.98, up 2.1% year-over-year; YTD Normalized FFO per share is $2.89, up 4%.

• Same store NOI grew 2.5%–3.7% year-over-year, with revenue up 2.7%–3.2% and expenses up 2.3%–3.2%.

• Net income for the nine months ended September 30, 2024 was $637.1M, up 16.6% year-over-year; Q3 net income was $143.1M.

• Physical occupancy remained strong at 96.1% in Q3 2024, with renewal and blended rates within expected ranges.

• Weighted average cap rate on recent acquisitions was 5.1%.

Outlook and guidance

• 2024 same store revenue growth guidance is 2.9%–3.5%, expense growth 2.5%–3.5%, and NOI growth 3.0%–3.5%.

• Q4 2024 Normalized FFO per share expected at $0.98–$1.02; full-year 2024 guidance at $3.87–$3.91 per share.

• 2025 outlook is positive, supported by low new supply in established markets, resilient high-earning renters, and improving West Coast markets.

• Embedded growth for 2024 is forecasted at 0.7%–1.0%, setting up for solid 2025 revenue growth.

• Too early for formal 2025 guidance, but preliminary building blocks provided.