EQR Stock Overview
Equity Residential is committed to creating communities where people thrive.
Equity Residential Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$68.39|
|52 Week High||US$94.32|
|52 Week Low||US$67.48|
|1 Month Change||-11.98%|
|3 Month Change||-4.78%|
|1 Year Change||-16.13%|
|3 Year Change||-20.71%|
|5 Year Change||3.73%|
|Change since IPO||377.83%|
Recent News & Updates
Equity Residential declares $0.625 dividend
Equity Residential (NYSE:EQR) declares $0.625/share quarterly dividend, in line with previous. Forward yield 3.43% Payable Oct. 14; for shareholders of record Sept. 26; ex-div Sept. 23. See EQR Dividend Scorecard, Yield Chart, & Dividend Growth.
Equity Residential sees 2022 revenue growth meeting, beating guidance midpoint
Equity Residential (NYSE:EQR) expects same-store revenue growth to meet or beat 10.5%, the midpoint of its 2022 guidance range, the apartment REIT said Wednesday. Consistent with normal seasonal demand patterns, rents peaked for the year in early August 2022 and are expected to moderate for the rest of the year, the company said. Equity Residential (EQR) said its same-store residential blended rent rate rose 11.8% Y/Y, according to preliminary data, vs. a 12.8% increase in July and 14.3% increase in June. Same-store physical occupancy stood at 96.6% in August, a tick down from 96.5% in July and from 96.7% in June. Percentage of residents renewing by month were 52% in both August and July and 55% in June. Equity Residential (EQR) shares were up 0.4% in Wednesday premarket trading. Earlier this month (Aug. 19), Redfin said U.S. median asking rent slowed for the second straight month in July.
Equity Residential: Inflation Protection And Shares Reasonably Valued
Apartment REITs have the ability to adjust rents quickly, which can be very positive in an inflationary environment. EQR is our favorite apartment REIT, in large part due to a focus on a more affluent demographic. We view shares as fairly valued, trading at close to their average historical valuation multiples on a number of indicators. While many REITs boast about having long leases lasting many years, sometimes decades, this is not always an advantage. Especially during times of high inflation, because even if there are rent escalators in these leases, they usually fail to make up for inflation. In a high inflationary environment, you want to be able to adjust your rents often, and that is where apartment REITs shine. One we particularly like is Equity Residential (EQR), which is one of the nation's largest publicly traded owners and operators of high-quality rental apartment properties. In other words, they buy, build and manage multifamily properties, with a focus on affluent long-term renters. It has about 311 communities, with a total of 80,581 units, in 12 markets. As can be seen in the slide below, it tends to operate in very dynamic markets, where the affluent renter demographic tends to be large and growing. This includes both urban and suburban properties. Equity Residential Investor Presentation Equity Residential's affluent resident tends to work in the highest earnings sectors of the economy and is not rent burdened, which create the ability to raise rents more readily in good economic times, and reduces non-payment risk during downturns. The average EQR resident spends 19.5% of income in rent as of 2022. So far this year, EQR is beating inflation. The pricing trend, which is the net effective price of its units inclusive of concessions, has grown almost 10% since the beginning of the year, well above the 6% range that historically characterizes a very good year. The current net effective loss to lease, which represents the amount of money that EQR is losing by not charging market rents, is currently ~13.5%. This means that there are still gains to be had as leases expire and are renewed closer to the market average. From the most recent earnings call, we particularly liked an answer CEO Mark Parrell gave in relation to EQR's ability to beat inflation and deliver a real return: So the way we're feeling about it is that we're going to be able to provide a pretty good margin to whatever the inflation numbers are especially as we expect them to sort of settle down. There is also this little bit of a circular reference thing where rent is something like third of the CPI. So we feed into that number, and that number feeds into our number. And so there is a little bit of that as well. But I think you should expect that apartments, especially our portfolio, are optimized in a way with our pricing engine that we can continue to have a real return that exceeds the rate of inflation. The company should also be able to continue performing well thanks to the benefit of good supply and demand dynamics, including excellent job growth and household formation. Housing alternatives also remain expensive and in low supply. Single-family home prices reached record levels in 2022 while rising mortgage rates have further stressed affordability, particularly for first-time home-buyers. Additionally, single-family housing starts are declining. The near-term apartment supply picture also remains favorable. Starts within close proximity to EQR's properties in its coastal markets are still at or below pre-pandemic levels. In addition, it seems likely that over the next few quarters new apartment starts should decline due to higher pricing of construction and financing, and continued supply chain disruptions. EQR's affluent renter base should be able to weather rising inflation in part due to lower relative rent-to-income ratios, and higher amounts of disposable income. As in the past, if inflation does persist, EQR's business should continue to perform relatively well. Balance Sheet Equity Residential continues to have one of the strongest balance sheets in the REIT sector, with low floating rate exposure and a long weighted average maturity. EQR also has relatively low leverage and has strong credit ratings (A-/A3). EQR Financial Debt to EBITDA ((TTM)) data by YCharts 2Q 2022 Results The 2Q results for Equity Residential were somewhat better than expected. Same-store occupancy improved to 96.7% while same-store revenue increased 13.6% year over year. Same-store expense growth continued to remain in check at 3.1%. Equity Residential reported normalized funds from operations of $0.89 per share, well ahead of the $0.72 the company reported in Q2 2021. Guidance The strong quarter led management to raise its full-year guidance. Management boosted its same-store revenue growth projections by 1.5%, at the midpoint, to a new range of between 10% and 11%. It guided normalized FFO for the year to a new range of between $3.48 and $3.58. Valuation We currently view shares as fairly valued, trading not that far from the ten-year average price/book value of ~2.4x.
|EQR||US REITs||US Market|
Return vs Industry: EQR exceeded the US REITs industry which returned -18.6% over the past year.
Return vs Market: EQR exceeded the US Market which returned -23.1% over the past year.
|EQR Average Weekly Movement||3.1%|
|REITs Industry Average Movement||3.7%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.8%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: EQR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: EQR's weekly volatility (3%) has been stable over the past year.
About the Company
Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract high quality long-term renters. Equity Residential owns or has investments in 305 properties consisting of 78,568 apartment units, located in Boston, New York, Washington, D.C., Seattle, San Francisco, Southern California and Denver.
Equity Residential Fundamentals Summary
|EQR fundamental statistics|
Is EQR overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|EQR income statement (TTM)|
|Cost of Revenue||US$973.61m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||3.33|
|Net Profit Margin||47.94%|
How did EQR perform over the long term?See historical performance and comparison
3.7%Current Dividend Yield
Is EQR undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 6/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for EQR?
Other financial metrics that can be useful for relative valuation.
|What is EQR's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does EQR's PE Ratio compare to its peers?
|EQR PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
AVB AvalonBay Communities
INVH Invitation Homes
MAA Mid-America Apartment Communities
ESS Essex Property Trust
EQR Equity Residential
Price-To-Earnings vs Peers: EQR is good value based on its Price-To-Earnings Ratio (20.6x) compared to the peer average (41.8x).
Price to Earnings Ratio vs Industry
How does EQR's PE Ratio compare vs other companies in the US REITs Industry?
Price-To-Earnings vs Industry: EQR is good value based on its Price-To-Earnings Ratio (20.6x) compared to the US REITs industry average (27x)
Price to Earnings Ratio vs Fair Ratio
What is EQR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||20.6x|
|Fair PE Ratio||41.2x|
Price-To-Earnings vs Fair Ratio: EQR is good value based on its Price-To-Earnings Ratio (20.6x) compared to the estimated Fair Price-To-Earnings Ratio (41.2x).
Share Price vs Fair Value
What is the Fair Price of EQR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: EQR ($68.39) is trading below our estimate of fair value ($99.03)
Significantly Below Fair Value: EQR is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is Equity Residential forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EQR's forecast earnings growth (3.7% per year) is above the savings rate (1.9%).
Earnings vs Market: EQR's earnings (3.7% per year) are forecast to grow slower than the US market (14.7% per year).
High Growth Earnings: EQR's earnings are forecast to grow, but not significantly.
Revenue vs Market: EQR's revenue (4.2% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: EQR's revenue (4.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: EQR's Return on Equity is forecast to be low in 3 years time (6.2%).
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How has Equity Residential performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EQR has a large one-off gain of $939.3M impacting its June 30 2022 financial results.
Growing Profit Margin: EQR's current net profit margins (47.9%) are higher than last year (29.4%).
Past Earnings Growth Analysis
Earnings Trend: EQR's earnings have grown by 13.3% per year over the past 5 years.
Accelerating Growth: EQR's earnings growth over the past year (74.9%) exceeds its 5-year average (13.3% per year).
Earnings vs Industry: EQR earnings growth over the past year (74.9%) exceeded the REITs industry 45.8%.
Return on Equity
High ROE: EQR's Return on Equity (11.4%) is considered low.
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How is Equity Residential's financial position?
Financial Health Score1/6
Financial Health Score 1/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: EQR's short term assets ($141.6M) do not cover its short term liabilities ($617.3M).
Long Term Liabilities: EQR's short term assets ($141.6M) do not cover its long term liabilities ($8.5B).
Debt to Equity History and Analysis
Debt Level: EQR's net debt to equity ratio (68.9%) is considered high.
Reducing Debt: EQR's debt to equity ratio has reduced from 82.2% to 69.3% over the past 5 years.
Debt Coverage: EQR's debt is not well covered by operating cash flow (17.3%).
Interest Coverage: EQR's interest payments on its debt are not well covered by EBIT (2.4x coverage).
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What is Equity Residential current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: EQR's dividend (3.66%) is higher than the bottom 25% of dividend payers in the US market (1.65%).
High Dividend: EQR's dividend (3.66%) is low compared to the top 25% of dividend payers in the US market (4.57%).
Stability and Growth of Payments
Stable Dividend: EQR's dividend payments have been volatile in the past 10 years.
Growing Dividend: EQR's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (74%), EQR's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (70.8%), EQR's dividend payments are covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Parrell (55 yo)
Mr. Mark J. Parrell serves as Director at Real Estate Roundtable since July 1, 2021. He has been the Chief Executive Officer and Trustee at Equity Residential since January 1, 2019 and its President since...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD8.49M) is below average for companies of similar size in the US market ($USD13.05M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Experienced Management: EQR's management team is considered experienced (4.1 years average tenure).
Experienced Board: EQR's board of directors are seasoned and experienced ( 11.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|04 Feb 22||SellUS$144,208||Alexander Brackenridge||Individual||1,600||US$90.13|
|04 Feb 22||SellUS$14,421||Catherine Carraway||Individual||160||US$90.13|
|04 Feb 22||SellUS$99,323||Scott Fenster||Individual||1,102||US$90.13|
|04 Feb 22||SellUS$78,413||Ian Kaufman||Individual||870||US$90.13|
|04 Feb 22||SellUS$249,660||Robert Garechana||Individual||2,770||US$90.13|
|04 Feb 22||SellUS$327,082||Michael Manelis||Individual||3,629||US$90.13|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Equity Residential's employee growth, exchange listings and data sources
- Name: Equity Residential
- Ticker: EQR
- Exchange: NYSE
- Founded: 1966
- Industry: Residential REITs
- Sector: Real Estate
- Implied Market Cap: US$26.602b
- Market Cap: US$25.723b
- Shares outstanding: 388.97m
- Website: https://www.equityapartments.com
Number of Employees
- Equity Residential
- Two North Riverside Plaza
- Suite 400
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|EQR||NYSE (New York Stock Exchange)||Yes||Common Shares||US||USD||Aug 1993|
|EQR||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Aug 1993|
|EQR||XTRA (XETRA Trading Platform)||Yes||Common Shares||DE||EUR||Aug 1993|
|0IIB||LSE (London Stock Exchange)||Yes||Common Shares||GB||USD||Aug 1993|
|EQR||BRSE (Berne Stock Exchange)||Yes||Common Shares||CH||CHF||Aug 1993|
|EQR *||BMV (Bolsa Mexicana de Valores)||Yes||Common Shares||MX||MXN||Aug 1993|
|E1QR34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 2 REPR 1 COM USD0.01||BR||BRL||Jan 2020|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/24 00:00|
|End of Day Share Price||2022/09/23 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.