Equity Residential (EQR) Q3 2025 earnings summary

Executive summary

• Third quarter results showed resilience with strong demand and record resident retention, especially in San Francisco and New York, despite macroeconomic uncertainty and early seasonal slowdown in leasing activity.

• Portfolio-wide occupancy remained high at over 96%, with the highest third quarter retention in company history and stable employment among residents.

• Management highlights strong operating performance, resilient fundamentals, and a healthy balance sheet with $1.7 billion in liquidity.

• Portfolio activity included nine property acquisitions, five property sales, and continued development and stabilization of new projects.

• Achieved strong cash flow growth and the highest Q3 resident retention rate in company history, with continued healthy operating fundamentals, especially in San Francisco and New York.

Financial highlights

• Net income for the nine months was $760.5 million, up 19.4% year-over-year; quarterly net income was $296.9 million, up 99.9%.

• Diluted EPS for the nine months was $1.93, up from $1.62; quarterly diluted EPS was $0.76, up from $0.38.

• Same-store revenue guidance midpoint for 2025 was adjusted down by 15 bps to 2.75% due to early seasonal weakness and delayed income initiatives.

• Revised 2025 same-store revenue range is 2.5%-3%, with NOI range of 2.1%-2.6% and midpoint of 2.35%.

• Normalized FFO per share guidance for 2025 is $3.98-$4.02, midpoint unchanged at $4.

Outlook and guidance

• Expect solid performance in 2026, with new supply in key markets like DC and San Francisco set to decline sharply.

• Embedded growth for 2026 expected to be similar to 2025, with about 80 bps of earn-in at year start.

• Coastal markets projected to deliver higher same-store revenue growth than expansion markets next year.

• Management expects continued positive secular tailwinds due to high single-family home ownership costs, positive household formation, and low new supply in core markets.

• Physical occupancy expected at 96.4% for full year 2025.