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Equity Residential

NYSE:EQR
Snowflake Description

Average dividend payer with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EQR
NYSE
$29B
Imp Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

Equity Residential is an S&P 500 company focused on the acquisition, development and management of rental apartment properties located in urban and high-density suburban markets where today’s renters want to live, work and play. The last earnings update was 14 days ago. More info.


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EQR Share Price and Events
7 Day Returns
1%
NYSE:EQR
1.8%
US REITs
-0.7%
US Market
1 Year Returns
27.1%
NYSE:EQR
16.3%
US REITs
3%
US Market
EQR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Equity Residential (EQR) 1% 2.1% 4.2% 27.1% 13.4% 25.6%
US REITs 1.8% 2.4% 3.1% 16.3% 13.8% 26.4%
US Market -0.7% -2% 2.4% 3% 39.2% 42%
1 Year Return vs Industry and Market
  • EQR outperformed the REITs industry which returned 16.3% over the past year.
  • EQR outperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
EQR
Industry
5yr Volatility vs Market

Value

 Is Equity Residential undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Equity Residential to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Equity Residential.

NYSE:EQR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:EQR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.53
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.531 (1 + (1- 21%) (31.44%))
0.774
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:EQR using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for Equity Residential is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Equity Residential is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

NYSE:EQR DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO) (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 1,140.89 Analyst x10 1,061.31
2020 1,201.15 Analyst x10 1,039.43
2021 1,256.91 Analyst x3 1,011.82
2022 1,301.71 Analyst x1 974.79
2023 1,323.52 Analyst x1 921.99
2024 1,364.41 Est @ 3.09% 884.18
2025 1,405.09 Est @ 2.98% 847.03
2026 1,445.92 Est @ 2.91% 810.85
2027 1,487.18 Est @ 2.85% 775.82
2028 1,529.06 Est @ 2.82% 742.03
Present value of next 10 years cash flows $9,069.26
NYSE:EQR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,529.06 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$32,944.72
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $32,944.72 ÷ (1 + 7.5%)10
$15,987.55
NYSE:EQR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $9,069.26 + $15,987.55
$25,056.81
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $25,056.81 / 384.31
$65.2
NYSE:EQR Discount to Share Price
Calculation Result
Value per share (USD) From above. $65.20
Current discount Discount to share price of $76.62
= -1 x ($76.62 - $65.20) / $65.20
-17.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Equity Residential is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Equity Residential's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Equity Residential's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:EQR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.48
NYSE:EQR Share Price ** NYSE (2019-05-17) in USD $76.62
United States of America REITs Industry PE Ratio Median Figure of 156 Publicly-Listed REITs Companies 32.79x
United States of America Market PE Ratio Median Figure of 3,088 Publicly-Listed Companies 17.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Equity Residential.

NYSE:EQR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:EQR Share Price ÷ EPS (both in USD)

= 76.62 ÷ 1.48

51.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Equity Residential is overvalued based on earnings compared to the US REITs industry average.
  • Equity Residential is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Equity Residential's expected growth come at a high price?
Raw Data
NYSE:EQR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 51.6x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
3.9%per year
United States of America REITs Industry PEG Ratio Median Figure of 141 Publicly-Listed REITs Companies 2.4x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NYSE:EQR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 51.6x ÷ 3.9%

13.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Equity Residential is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Equity Residential's assets?
Raw Data
NYSE:EQR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $27.02
NYSE:EQR Share Price * NYSE (2019-05-17) in USD $76.62
United States of America REITs Industry PB Ratio Median Figure of 191 Publicly-Listed REITs Companies 1.86x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NYSE:EQR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:EQR Share Price ÷ Book Value per Share (both in USD)

= 76.62 ÷ 27.02

2.84x

* Primary Listing of Equity Residential.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Equity Residential is overvalued based on assets compared to the US REITs industry average.
X
Value checks
We assess Equity Residential's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Equity Residential has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Equity Residential expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Equity Residential expected to grow at an attractive rate?
  • Equity Residential's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Equity Residential's earnings growth is positive but not above the United States of America market average.
  • Equity Residential's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:EQR Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:EQR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 3.9%
NYSE:EQR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 2%
United States of America REITs Industry Earnings Growth Rate Market Cap Weighted Average 5.7%
United States of America REITs Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:EQR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:EQR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,840 549 1
2022-12-31 2,819 543 1
2021-12-31 2,801 573 4
2020-12-31 2,753 1,372 535 17
2019-12-31 2,674 1,358 481 18
NYSE:EQR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,608 1,369 547
2018-12-31 2,578 1,356 654
2018-09-30 2,556 1,340 663
2018-06-30 2,528 1,392 586
2018-03-31 2,500 1,323 668
2017-12-31 2,471 1,266 600
2017-09-30 2,446 1,365 752
2017-06-30 2,428 1,298 822
2017-03-31 2,411 1,317 844
2016-12-31 2,426 1,214 4,289
2016-09-30 2,524 1,112 4,215
2016-06-30 2,614 1,157 4,204

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Equity Residential's earnings are expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
  • Equity Residential's revenue is expected to grow by 2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:EQR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from Equity Residential Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:EQR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.63 1.86 1.34 3.00
2020-12-31 1.44 1.71 1.24 9.00
2019-12-31 1.34 1.69 1.17 10.00
NYSE:EQR Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.48
2018-12-31 1.78
2018-09-30 1.80
2018-06-30 1.59
2018-03-31 1.82
2017-12-31 1.64
2017-09-30 2.05
2017-06-30 2.25
2017-03-31 2.31
2016-12-31 11.75
2016-09-30 11.56
2016-06-30 11.54

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Equity Residential is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Equity Residential's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Equity Residential has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Equity Residential performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Equity Residential's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Equity Residential's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Equity Residential's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Equity Residential's 1-year earnings growth is negative, it can't be compared to the US REITs industry average.
Earnings and Revenue History
Equity Residential's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Equity Residential Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:EQR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,607.91 547.18 52.92
2018-12-31 2,578.43 654.45 53.81
2018-09-30 2,556.40 662.70 53.28
2018-06-30 2,527.65 585.99 53.21
2018-03-31 2,500.32 668.43 54.33
2017-12-31 2,471.41 600.36 52.22
2017-09-30 2,446.19 751.78 50.80
2017-06-30 2,428.14 821.62 50.63
2017-03-31 2,410.82 844.38 55.30
2016-12-31 2,425.80 4,288.55 57.84
2016-09-30 2,523.50 4,215.41 61.45
2016-06-30 2,613.72 4,203.89 64.26
2016-03-31 2,697.68 4,271.34 61.62
2015-12-31 2,744.97 862.88 64.66
2015-09-30 2,706.43 876.56 60.27
2015-06-30 2,674.22 901.55 55.04
2015-03-31 2,647.68 727.22 53.13
2014-12-31 2,614.75 625.58 50.68
2014-09-30 2,589.22 472.17 56.46
2014-06-30 2,551.77 222.38 60.93
2014-03-31 2,516.42 39.71 63.26
2013-12-31 2,387.70 -247.06 62.18
2013-09-30 2,193.31 -230.50 57.09
2013-06-30 2,018.38 -127.01 52.73
2013-03-31 1,821.96 -75.43 50.04
2012-12-31 1,747.50 105.31 47.23
2012-09-30 1,762.43 41.22 48.31
2012-06-30 1,804.61 -11.62 48.34

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Equity Residential has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Equity Residential used its assets more efficiently than the US REITs industry average last year based on Return on Assets.
  • Equity Residential's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Equity Residential's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Equity Residential has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Equity Residential's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Equity Residential's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Equity Residential's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Equity Residential's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Equity Residential's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Equity Residential Company Filings, last reported 1 month ago.

NYSE:EQR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 10,699.07 9,258.87 30.06
2018-12-31 10,778.76 8,830.07 49.44
2018-09-30 10,848.33 8,826.88 60.52
2018-06-30 10,806.27 8,777.75 51.24
2018-03-31 10,879.66 8,666.41 57.09
2017-12-31 10,840.82 8,958.89 55.79
2017-09-30 10,874.32 8,992.27 50.93
2017-06-30 10,906.38 8,964.09 42.45
2017-03-31 10,875.16 8,929.93 42.89
2016-12-31 10,903.08 8,987.26 79.06
2016-09-30 10,780.69 8,503.70 525.80
2016-06-30 11,884.93 8,516.13 509.89
2016-03-31 11,829.80 8,587.40 378.58
2015-12-31 11,263.14 10,922.04 45.93
2015-09-30 11,227.25 10,804.41 47.13
2015-06-30 11,332.91 10,827.91 96.06
2015-03-31 11,215.46 10,885.52 56.31
2014-12-31 11,208.51 10,858.97 42.01
2014-09-30 11,147.57 10,963.02 32.16
2014-06-30 11,068.67 11,084.39 77.58
2014-03-31 11,124.83 10,947.95 48.64
2013-12-31 11,208.34 10,766.25 72.24
2013-09-30 11,298.85 11,710.65 984.89
2013-06-30 11,046.81 11,723.57 164.84
2013-03-31 10,821.85 12,196.55 56.14
2012-12-31 7,925.48 8,573.29 614.11
2012-09-30 6,628.07 9,309.15 45.62
2012-06-30 6,556.43 9,435.18 48.89
  • Equity Residential's level of debt (86.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (98.4% vs 86.5% today).
  • Debt is not well covered by operating cash flow (14.8%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.3x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Equity Residential's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Equity Residential has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Equity Residential's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.96%
Current annual income from Equity Residential dividends. Estimated to be 3.05% next year.
If you bought $2,000 of Equity Residential shares you are expected to receive $59 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Equity Residential's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Equity Residential's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:EQR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
United States of America REITs Industry Average Dividend Yield Market Cap Weighted Average of 184 Stocks 3.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:EQR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 2.62 2.00
2022-12-31 2.53 2.00
2021-12-31 2.45 5.00
2020-12-31 2.34 17.00
2019-12-31 2.25 17.00
NYSE:EQR Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-14 2.270 3.008
2018-12-13 2.160 3.064
2018-09-14 2.160 3.222
2018-06-14 2.160 3.301
2018-03-15 2.160 3.497
2017-12-19 2.015 3.373
2017-09-15 2.015 3.009
2017-06-15 2.015 3.004
2017-03-16 2.015 3.122
2016-12-15 2.015 3.216
2016-11-02 2.015 3.309
2016-10-25 2.015 3.319
2016-08-04 2.015 3.149
2016-07-26 2.015 2.994
2016-05-05 2.015 2.961
2015-12-17 2.210 2.973
2015-02-26 2.000 2.650
2015-02-03 2.000 2.547
2013-12-17 1.850 2.941
2013-02-21 1.780 3.227
2013-02-05 1.780 3.150
2012-09-11 1.350 2.380
2012-06-08 1.350 2.190
2012-03-13 1.350 2.197
2011-12-07 1.580 2.764
2011-09-09 1.350 2.442
2011-06-10 1.350 2.252
2011-03-11 1.350 2.343
2011-02-24 1.470 2.740
2011-02-02 1.470 2.729
2010-09-10 1.350 2.689
2010-06-08 1.350 3.002
2010-03-02 1.350 3.224
2009-11-30 1.350 4.040
2009-09-08 1.350 4.479
2009-08-06 1.350 4.931
2009-07-29 1.350 5.417
2009-05-28 1.930 8.752

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Equity Residential's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (578x coverage).
X
Income/ dividend checks
We assess Equity Residential's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Equity Residential afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Equity Residential has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Equity Residential's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Parrell
COMPENSATION $4,047,571
AGE 51
TENURE AS CEO 0.3 years
CEO Bio

Mr. Mark J. Parrell has been the Chief Executive Officer and Trustee at Equity Residential since January 1, 2019 and its President since September 4, 2018. Mr. Parrell served as Chief Financial Officer and Executive Vice President of Equity Residential since October 2007 until September 4, 2018. Mr. Parrell serves as Executive Vice President and Chief Financial Officer of ERP Operating Limited Partnership. He has been with the Chicago-based company, Equity Residential since 1995. He has over 20 years of real estate, capital markets, mergers and acquisitions and investment experience. He served as Senior Vice President and Treasurer of the Equity Residential from August 2005 to October 2007 and served in various roles in the finance group since September 1999. He has worked at Equity Residential and its affiliated companies in a variety of roles since 1995. He served as an Independent Director at Brookdale Senior Living Inc. from April 23, 2015 to July 24, 2017. He served as a Director at Aviv REIT, Inc. since March 25, 2013. Mr. Parrell is a Member of National Multifamily Housing Council and Urban Land Institute. He holds a B.B.A. degree in Accounting and Finance from the University of Michigan and a J.D. from Georgetown University Law Center.

CEO Compensation
  • Mark's compensation has increased by more than 20% in the past year.
  • Mark's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Equity Residential management team in years:

1.3
Average Tenure
51
Average Age
  • The average tenure for the Equity Residential management team is less than 2 years, this suggests a new team.
Management Team

Sam Zell

TITLE
Founder & Chairman
COMPENSATION
$3M
AGE
76

Mark Parrell

TITLE
President
COMPENSATION
$4M
AGE
51
TENURE
0.3 yrs

Robert Garechana

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
39
TENURE
0.7 yrs

Michael Manelis

TITLE
COO & Executive VP
COMPENSATION
$2M
AGE
49
TENURE
0.8 yrs

Alan George

TITLE
Executive VP & Chief Investment Officer
COMPENSATION
$4M
AGE
60
TENURE
17.3 yrs

Ian Kaufman

TITLE
Senior VP & Chief Accounting Officer
AGE
50
TENURE
12.5 yrs

Scott Fenster

TITLE
Executive VP
AGE
42
TENURE
1.3 yrs

Christa Sorenson

TITLE
Executive VP of Human Resources
AGE
57
TENURE
3.4 yrs

John Lennox

TITLE
Senior Vice President of Financial Planning & Analysis
AGE
64

Catherine Carraway

TITLE
Senior Vice President of Human Resources
Board of Directors Tenure

Average tenure and age of the Equity Residential board of directors in years:

9.8
Average Tenure
64
Average Age
  • The tenure for the Equity Residential board of directors is about average.
Board of Directors

Mark Parrell

TITLE
President
COMPENSATION
$4M
AGE
51
TENURE
0.3 yrs

Gerry Spector

TITLE
Vice Chairman of the Board
COMPENSATION
$248K
AGE
71
TENURE
11.3 yrs

Sam Zell

TITLE
Founder & Chairman
COMPENSATION
$3M
AGE
76
TENURE
26.2 yrs

Jack Neal

TITLE
Independent Trustee
COMPENSATION
$272K
AGE
68
TENURE
12.8 yrs

Linda Bynoe

TITLE
Independent Trustee
COMPENSATION
$270K
AGE
66
TENURE
9.4 yrs

Mary Haben

TITLE
Independent Trustee
COMPENSATION
$275K
AGE
62
TENURE
7.8 yrs

Chuck Atwood

TITLE
Lead Trustee
COMPENSATION
$289K
AGE
69
TENURE
10.2 yrs

David Neithercut

TITLE
COMPENSATION
$11M
AGE
62
TENURE
13.3 yrs

Mark Shapiro

TITLE
Independent Trustee
COMPENSATION
$255K
AGE
48
TENURE
9.3 yrs

Brad Keywell

TITLE
Independent Trustee
COMPENSATION
$248K
AGE
48
TENURE
8.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
21. Feb 19 Sell Alexander Brackenridge Individual 19. Feb 19 19. Feb 19 -6,421 $73.27 $-470,467
07. Feb 19 Sell Christa Sorenson Individual 05. Feb 19 05. Feb 19 -315 $72.21 $-22,747
07. Feb 19 Sell Michael Manelis Individual 05. Feb 19 05. Feb 19 -684 $72.21 $-49,393
07. Feb 19 Sell Ian Kaufman Individual 05. Feb 19 05. Feb 19 -932 $72.21 $-67,302
07. Feb 19 Sell Robert Garechana Individual 05. Feb 19 05. Feb 19 -687 $72.21 $-49,610
07. Feb 19 Sell Scott Fenster Individual 05. Feb 19 05. Feb 19 -475 $72.21 $-34,301
07. Feb 19 Sell Alexander Brackenridge Individual 05. Feb 19 05. Feb 19 -2,003 $72.21 $-144,641
07. Feb 19 Sell Barry Altshuler Individual 05. Feb 19 05. Feb 19 -1,381 $72.21 $-99,725
09. Nov 18 Sell David Santee Individual 07. Nov 18 07. Nov 18 -12,499 $67.25 $-840,595
12. Sep 18 Sell Ian Kaufman Individual 10. Sep 18 10. Sep 18 -5,075 $67.75 $-343,831
12. Sep 18 Sell Michael Manelis Individual 11. Sep 18 11. Sep 18 -670 $67.91 $-45,501
04. Jun 18 Sell Alan George Individual 31. May 18 31. May 18 -31,946 $64.00 $-2,044,544
24. May 18 Sell David Santee Individual 23. May 18 23. May 18 -1,928 $61.55 $-118,676
X
Management checks
We assess Equity Residential's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Equity Residential has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Here's How We Evaluate Equity Residential's (NYSE:EQR) Dividend

Could Equity Residential (NYSE:EQR) be an attractive dividend share to own for the long haul? … On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … While Equity Residential's 3.0% dividend yield is not the highest, we think its lengthy payment history is quite interesting.

Simply Wall St -

If You Had Bought Equity Residential (NYSE:EQR) Shares Five Years Ago You'd Have Made 30%

Better yet, you'd like to see the share price move up more than the market average. … But Equity Residential (NYSE:EQR) has fallen short of that second goal, with a share price rise of 30% over five years, which is below the market return. … During the five years of share price growth, Equity Residential moved from a loss to profitability.

Simply Wall St -

Read This Before Buying Equity Residential (NYSE:EQR) Shares

So before you buy or sell Equity Residential (NYSE:EQR), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'.

Simply Wall St -

Will Equity Residential's (NYSE:EQR) Earnings Grow In The Next Couple Of Years?

The latest earnings update Equity Residential (NYSE:EQR) released in December 2018a … suggested

Simply Wall St -

How Did Equity Residential's (NYSE:EQR) 6.4% ROE Fare Against The Industry?

To keep the lesson grounded in practicality, we'll use ROE to better understand Equity Residential (NYSE:EQR). … Over the last twelve months Equity Residential has recorded a ROE of 6.4%. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Equity Residential's (NYSE:EQR) CEO Incentives Align With Yours?

First, this article will compare CEO compensation with compensation at other large companies. … How Does David Neithercut's Compensation Compare With Similar Sized Companies. … According to our data, Equity Residential has a market capitalization of US$24.8b, and pays its CEO total annual compensation worth US$9m.

Simply Wall St -

Are Insiders Cautious About Equity Residential (NYSE:EQR) Shares?

Equity Residential's insiders have divested from. … Generally, insiders selling shares in their own firm sends a bearish signal … A two-decade research published in The MIT Press (1998) showed that stocks following insider selling declined 2.7% relative to the market

Simply Wall St -

Equity Residential (NYSE:EQR): Set To Experience A Decrease In Earnings?

In March 2018, Equity Residential (NYSE:EQR) released its earnings update. … as a -18.53% fall in profits is expected in the upcoming year … the past 5-year average growth rate of 40.63%.

Simply Wall St -

Will Equity Residential (NYSE:EQR) Continue To Underperform Its Industry?

and want to begin learning the link between company’s fundamentals and stock market performance. … Equity Residential (NYSE:EQR) performed in line with its residential reits industry on the basis of its ROE – producing a return of 6.43% relative to the peer average of 7.38% over the past 12 months. … View our latest analysis for Equity Residential

Simply Wall St -

Is Buying Equity Residential (NYSE:EQR) For Its Upcoming US$00.54 Dividend A Good Choice?

If you are interested in cashing in on Equity Residential's (NYSE:EQR) upcoming dividend of $0.54 per share, you only have 2 days left to buy the shares before its ex-dividend date, 22 June 2018, in time for dividends payable on the 13 July 2018. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Equity Residential's latest financial data to analyse its dividend characteristics. … 5 questions to ask before buying a dividend stock.

Simply Wall St -

Company Info

Description

Equity Residential is an S&P 500 company focused on the acquisition, development and management of rental apartment properties located in urban and high-density suburban markets where today’s renters want to live, work and play. Equity Residential owns or has investments in 310 properties consisting of 80,061 apartment units, primarily located in Boston, New York, Washington, D.C., Seattle, San Francisco, Southern California and Denver.

Details
Name: Equity Residential
EQR
Exchange: NYSE
Founded: 1966
$29,446,197,830
$28,384,829,164
384,314,772
Website: http://www.equityapartments.com
Address: Equity Residential
Two North Riverside Plaza,
Suite 400,
Chicago,
Illinois, 60606,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE EQR Common Shares New York Stock Exchange US USD 12. Aug 1993
DB EQR Common Shares Deutsche Boerse AG DE EUR 12. Aug 1993
LSE 0IIB Common Shares London Stock Exchange GB USD 12. Aug 1993
Number of employees
Current staff
Staff numbers
2,700
Equity Residential employees.
Industry
Residential REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 01:31
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/16
Last earnings filing: 2019/05/06
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.