Equity Residential: Price To AFFO And Dividend Yield Make Them A Hold

Sep. 25, 2024 8:24 AM ETEquity Residential (EQR) StockEQR
Daniel Urbina
703 Followers
(10min)

Summary

  • EQR's financials show decelerating rental income and NOI growth, yet the growth has been decent enough and the company raised guidance for same-store metrics, indicating positive forward momentum.
  • EQR boasts high occupancy rates, low leverage, and affluent customers, but its current valuation is no longer undervalued for income-driven investors.
  • Combining different factors, I rate the stock of Equity Residential as a hold at its current price.
Sink with faucet on kitchen counter by window

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On Monday, Bank of America Securities downgraded Equity Residential (NYSE:EQR) from a buy to a neutral rating, citing that a softening in the US labor market will most likely affect its portfolio, as its demographics, which are tilted towards urban apartments

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