Equity Residential (EQR, Financial) has submitted a filing for an automatic mixed securities shelf. This strategic move is designed to offer the company flexibility in raising capital as needed, by allowing it to issue various types of securities. Investors may view this as a proactive step to bolster EQR's financial stability and growth potential in the face of market fluctuations.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 20 analysts, the average target price for Equity Residential (EQR, Financial) is $77.40 with a high estimate of $87.00 and a low estimate of $68.00. The average target implies an upside of 11.22% from the current price of $69.59. More detailed estimate data can be found on the Equity Residential (EQR) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, Equity Residential's (EQR, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Equity Residential (EQR, Financial) in one year is $74.21, suggesting a upside of 6.64% from the current price of $69.59. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Equity Residential (EQR) Summary page.
EQR Key Business Developments
Release Date: April 30, 2025
- Same-Store Revenue Growth: Exceeded expectations.
- Physical Occupancy: 96.5% across the portfolio.
- Resident Turnover: 7.9%, a record low.
- Ended Rate Growth: 1.8% in the quarter, at the midpoint of the expected range.
- Average Rent-to-Income Ratio: 20%.
- Occupancy in Washington, D.C.: Over 97% with good rent growth.
- Occupancy in San Francisco: Above 97% with declining concessions.
- Occupancy in Seattle: 96.5% with good rental rate growth.
- Blended Rate Growth Expectation for Q2: 2.8% to 3.4%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Equity Residential (EQR, Financial) exceeded expectations for the first quarter of 2025, with strong same-store revenue growth.
- The company reported high physical occupancy at 96.5% and a record low resident turnover of 7.9%.
- EQR benefits from strong demand in key markets like New York, Washington, D.C., Seattle, and San Francisco.
- The company maintains a strong cash flow business model with a material dividend and a fortress balance sheet.
- EQR is leveraging innovation and automation to improve efficiency and customer experience, with plans to automate the leasing process further.
Negative Points
- There is a higher-than-usual level of uncertainty in the economic outlook due to recent governmental actions and tariffs.
- The institutional sales market remains below pre-COVID levels, with higher rates and uncertainty affecting prices.
- Los Angeles market performance is mixed, with challenges in urban areas and slow recovery in the entertainment sector.
- Expansion markets like Atlanta, Dallas, and Austin face challenging conditions due to competitive new supply.
- Recent rent control measures in Washington State and Maryland could negatively impact EQR's portfolio and future investments.
