Equity Residential (EQR), valued at a market cap of $25.6 billion, 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 Q4 earnings results on Feb. 4.
Ahead of this event, analysts project the REIT to report an FFO of $1 per share, flat from the year-ago quarter. The company has beaten or met Wall Street's FFO estimates in all of the last four quarters.
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 $4.02 per share in fiscal 2025.
Shares of EQR have gained 9.4% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 24.4% rise but surpassing the Real Estate Select Sector SPDR Fund’s (XLRE) marginal return over the same period.
Shares of EQR fell 4.8% following its Q3 earnings release on Oct. 30. The company reported an FFO per share of $0.98, matching Wall Street’s expectations. Its revenue of $748.3 million toppled Street forecasts.
Analysts' consensus view on Equity Residential’s stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 27 analysts covering the stock, 11 recommend "Strong Buy," one suggests "Moderate Buy," and 15 indicate a “Hold” rating. This configuration is slightly more bullish than a month ago, with ten analysts suggesting a "Strong Buy."
The average analyst price target for EQR is $78.89, indicating a 16.8% potential upside from the current levels.
