- Increased FFO Forecast: Equity Residential raised its full-year normalized Funds From Operations (FFO) per share forecast to $3.97-$4.03, up from a previous expectation of $3.90-$4.00.
- Third Quarter Outlook: The company anticipates third-quarter normalized FFO per share to be 99 cents to $1.03.
- Second Quarter Performance: Normalized FFO per share reached 99 cents, compared to 97 cents year-over-year.
- Same-Store Net Operating Income: Increased by 2.3% compared to the previous year, slightly above the estimate of 2.09%, but below last year’s 3% rise.
- Rental Income Growth: Achieved a 4.7% year-over-year increase in rental income, totaling $768.8 million, marginally below the expected $769.6 million.
- Steady Occupancy Rates: Reported an occupancy rate of 96.6%, surpassing both last year’s 96.4% and the forecasted rate.
- Blended Rate Expectation: For the third quarter of 2025, the blended rental rate is projected to be between 2.2% and 2.8%.
- Analyst Recommendations: The company has 15 buy ratings, 13 hold ratings, and zero sell ratings from analysts.
A look at Equity Residential Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
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 focusing on apartment complexes in the US, has received a mixed outlook based on Smartkarma Smart Scores. With a solid score of 4 for dividends, investors can expect consistent income returns. Additionally, the company has scored moderately across other factors such as value, growth, resilience, and momentum. This indicates a stable performance across various aspects, giving investors a balanced view of the company’s long-term potential.
Despite not excelling in any particular area, Equity Residential‘s Smart Scores suggest a reliable and steady investment option. Its emphasis on dividends provides a reliable income stream, while maintaining a decent balance in other key factors of value, growth, resilience, and momentum. This blend of attributes positions Equity Residential as a dependable choice for investors seeking a steady long-term outlook within the real estate sector in the US.
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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