Equity Residential (EQR), a leading multi-family REIT with a market cap of $29.4 billion, focuses on high-quality residential properties in key urban markets. The Chicago, Illinois-based company's portfolio includes 299 properties with 79,738 apartment units, primarily in markets like Boston, New York, Washington, D.C., and expanding into Denver, Atlanta, and Austin.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Equity Residential fits this criterion perfectly. Equity Residential is renowned for its focus on high-demand, affluent urban markets and its commitment to creating thriving residential communities with a strong national presence and localized management expertise.
However, the REIT has faced a 2.2% decline from its 52-week high of $78.83. Shares of Equity Residential have risen 13.7% over the past three months, outperforming the broader Nasdaq Composite's ($NASX) 1.6% dip during the same period.
Longer term, EQR stock has gained 26% on a YTD basis, which outpaces NASX's 17.1% increase over the same period. Meanwhile, EQR has surged 23.9% over the past 52 weeks, slightly lagging behind NASX's 28.2% gains.
Yet, EQR has been trading above both its 50-day and 200-day moving averages since mid-April.
Equity Residential has outperformed in 2024 due to strong demand, pricing power in East Coast markets, and better-than-expected cost management in its same-store portfolio. Moreover, the stock rose marginally on Jul. 29 after the company reported better-than-expected Q2 FFO of $0.97 per share and revenue of $734.2 million, exceeding analyst estimates. This positive performance, along with an upward revision in the full-year revenue growth forecast due to strong rental demand and stable supply in East Coast markets, boosted investor confidence.
EQR has slightly outpaced its rival Essex Property Trust, Inc. (ESS) on a YTD basis, as ESS posted a 25.9% gain. But, over the past 52 weeks, Essex Property has returned 39.5%, outperforming EQR's performance over the same time frame.
Despite the recent outperformance in 2024, analysts remain cautiously optimistic about the stock's prospects. Among the 26 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and as of writing, EQR is trading above the mean price target of $76.27.
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.
