Valued at a market cap of $27.9 billion, Equity Residential (EQR) is a fully integrated multi-family real estate investment trust (REIT) that focuses on the acquisition, development, and management of residential properties located in and around dynamic cities across the country that attract affluent long-term renters. The Chicago, Illinois-based company is expected to announce its fiscal Q3 earnings results on Tuesday, Oct. 29.
Ahead of this event, analysts project the REIT to report an FFO of $0.98 per share, up 2.1% from $0.96 per share in the year-ago quarter. The company has beaten or met Wall Street's FFO estimates in three of the last four quarters while missing on another occasion. In Q2, the company reported an FFO of $0.97, which topped the consensus estimates by 1%.
For fiscal 2024, analysts expect EQR to report an FFO of $3.89 per share, up 2.9% from $3.78 in fiscal 2023. Moreover, FFO is expected to increase 3.3% year-over-year to $4.02 per share in fiscal 2025.
Shares of EQR have gained 22.9% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 35.4% rise and the Real Estate Select Sector SPDR Fund’s (XLRE) 27.3% return over the same period.
Shares of EQR closed up marginally after its Q2 earnings release on Jul. 29 as its revenue increased 2.4% year-over-year, reaching $734.2 million, and FFO climbed 3.2% year-over-year to $0.97 per share in the quarter, and marginally surpassed Wall Street’s top and bottom-line estimates. The outperformance was primarily driven by a 2.9% increase in same-store revenues fueled by healthy demand and modest supply across most of the company’s markets. Its raised full-year 2024 EPS and same-store revenue growth guidance further bolstered investor confidence.
Analysts' consensus view on Equity Residential’s stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 27 analysts covering the stock, nine recommend "Strong Buy," one suggest "Moderate Buy," and 17 indicate a “Hold” rating. This configuration is slightly less bullish than a month ago, with ten analysts suggesting a "Strong Buy."
The average analyst price target for EQR is $76.82, indicating only a 4.3% potential upside from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
