Chicago-based Equity Residential (EQR) is a real estate investment trust that owns and manages 312 rental properties comprising 85,520 apartments. It focuses primarily on major U.S. coastal markets, with targeted exposure to high-growth metros such as Atlanta, Austin, Dallas/Fort Worth, and Denver. The company has a market capitalization of approximately $24.7 billion.
Shares of this real estate giant have underperformed the broader market over the past year. EQR has gained 3.9% over this period, while the broader S&P 500 Index ($SPX) has rallied 20.4%. Likewise, EQR is up 4.7% so far this year, well behind the S&P 500’s 13.7% gain year-to-date.
Narrowing the comparison, EQR has also underperformed the Residential REIT ETF (HAUS), which has climbed 7.5% over the past year and 5.6% year-to-date.
On July 22, Equity Residential reported its Q2 FY2026 earnings, sending shares down marginally the following trading day. EQR’s same-store revenues grew 1.9% year-over-year to $747.91 million, driven by strong physical occupancy and better-than-anticipated renewal rates achieved. Normalized FFO per share rose 3% to $1.02.
Equity Residential raised the midpoint of its full-year 2026 same-store guidance, now expecting revenue growth of 2.1% to 2.7%, compared with 1.2% to 3.2% previously, and NOI growth of 1.5% to 2.1%, versus 0.5% to 2.5% previously, while lowering physical occupancy guidance slightly to 96.3% from 96.4%. The company withdrew its EPS and FFO per share guidance due to the pending all-stock merger of equals with AvalonBay Communities.
For the current fiscal year ending in December 2026, analysts project EQR’s diluted EPS to rise 2.3% to $4.08. The company has surpassed consensus EPS estimates in three of the past four quarters, while missing estimates in one quarter.
Among the 20 analysts covering EQR stock, the consensus rating is a “Moderate Buy.” The rating is based on six “Strong Buys” and 14 “Holds.”
EQR’s analyst sentiment is more bearish than it was two months ago, when the stock had seven “Strong Buy” recommendations.
On August 13, UBS analyst Michael Goldsmith reiterated a “Buy” rating on Equity Residential and maintained the $73 price target.
The mean price target of $72.56 implies 10% upside from EQR’s current share price, while the Street-high target of $79 suggests potential upside of 19.8%.
