Update shared on05 Sep 2025
Despite ongoing apartment REIT underperformance and negative market sentiment, analysts now see a more attractive setup for Equity Residential due to easing new supply, though the consensus price target remains unchanged at $74.58.
Analyst Commentary
- Apartment REITs, including Equity Residential, have underperformed most of the year and rank among the weakest REIT subsectors year-to-date.
- Significant selloff during Q2 earnings reset market expectations for the sector.
- Stocks in the group, including Equity Residential, are now trading at rare discounts relative to other REIT subsectors.
- New supply appears to be falling, altering the sector’s forward supply outlook.
- Overall market sentiment remains negative, but the setup is becoming more attractive, leading to a more bullish stance despite the price target reduction.
What's in the News
- Equity Residential maintains full-year 2025 guidance for same store revenue growth of 2.6% to 3.2% and expects physical occupancy of 96.4%.
- No shares were repurchased in Q2 2025; company has now completed buyback of 96.73% of the program announced in 2005.
- Chief Investment Officer Alexander Brackenridge to retire at year-end; CFO Robert A. Garechana will succeed him as CIO.
- Bret D. McLeod, currently CFO of Great Wolf Resorts, will join as Executive Vice President – Finance in July and become CFO on August 7, 2025.
Valuation Changes
Summary of Valuation Changes for Equity Residential
- The Consensus Analyst Price Target remained effectively unchanged, at $74.58.
- The Future P/E for Equity Residential has fallen slightly from 55.22x to 53.58x.
- The Discount Rate for Equity Residential remained effectively unchanged, moving only marginally from 7.14% to 7.15%.
Disclaimer
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