- Equity Residential‘s rental income for the fourth quarter was $766.8 million, which represents a 5.4% increase year-over-year and exceeded the estimate of $755.9 million.
- The company’s Normalized Funds From Operations (FFO) per share was consistent at $1.00 compared to last year.
- Occupancy rates increased slightly to 96.1% from 95.8% year-over-year, surpassing the estimate of 96%.
- Equity Residential‘s forecast for the first quarter of 2025 projects Normalized FFO per share to be between 90 and 94 cents.
- The company expects continued growth in same-store revenue throughout 2025, anticipating a rise between 2.25% and 3.25% for the year.
- The Blended Rate for the first quarter of 2025 is forecasted to be between 1.4% and 2.2%.
- Future growth is expected based on steady economic conditions, limited new supply in coastal areas, favorable employment conditions for high-earners, and effective operations.
- Despite challenges due to high new supply levels, there is optimism for future rental growth as the supply is absorbed.
- Market sentiment indicated by analysts includes 15 buy ratings and 15 hold ratings, with no sell ratings noted.
A look at Equity Residential Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Equity Residential, a real estate investment trust specializing in apartment complexes in the United States, has received mixed Smart Scores across different factors. With a Value score of 3, the company is deemed reasonably valued by analysts. The Dividend score of 4 highlights Equity Residential‘s strong dividend-paying ability, which may be appealing to income-focused investors. However, the Growth score of 3 suggests that the company may not be expected to experience significant growth in the foreseeable future. Additionally, with a Resilience score of 2, Equity Residential may face some challenges in maintaining stability in varying market conditions. The Momentum score of 3 indicates a moderate level of momentum in the company’s stock performance.
In summary, Equity Residential‘s overall outlook based on the Smart Scores points to a company that is decently valued with a solid dividend track record but may lack strong growth potential and could face hurdles in terms of resilience in challenging market environments. Investors in Equity Residential may need to consider these factors when making long-term investment decisions in the real estate sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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