Equity Residential (EQR) Q4 2024 earnings summary

Executive summary

• Delivered solid 2024 operational results, with Normalized FFO of $3.89 per share at the midpoint of guidance and EPS up 23.6% to $2.72 for the year.

• Achieved record-low turnover at 42.5% and maintained strong resident retention, with physical occupancy at 96.1%-96.2%.

• Portfolio strategy emphasizes established coastal markets (90%+ of NOI) and selective expansion into growth markets, with ongoing rotation into newer assets.

• Board approved a 2.6% increase in annual dividend to $2.77 per share for 2025.

• $2B invested in acquisitions and development in expansion markets in 2024; $1B of older coastal assets disposed.

Financial highlights

• 2024 same-store revenue grew 3.0%, with expense growth at 2.9% and same-store NOI up 3.1%.

• 2024 EPS was $2.72; Q4 2024 EPS was $1.10, up 34.1% year-over-year.

• 2024 FFO per share was $3.76; Normalized FFO per share was $3.89.

• Full-year occupancy was 96.1%-96.2%, with blended rate growth of 1%-1.9%.

• Net gain on sales of real estate properties for 2024: $546.8M.

Outlook and guidance

• 2025 guidance: EPS of $3.00–$3.10, FFO per share of $3.87–$3.97, Normalized FFO per share of $3.90–$4.00.

• Same-store revenue growth expected at 2.25%-3.25% and expense growth at 3.5%-4.5% for 2025.

• Revenue growth anticipated to accelerate in the second half of 2025, with higher lease rate growth and continued high occupancy.

• Guidance assumes $1.5B in acquisitions and $1B in dispositions, with net acquisition activity funded by debt.

• Guidance excludes potential impacts from Los Angeles fires, as no material property damage has occurred.