Equity Residential FFO of $0.94 in-line, revenue of $717.31M in-line

• Equity Residential press release (NYSE:EQR): Q2 FFO of $0.94 in-line.
• Revenue of $717.31M (+4.4% Y/Y) in-line.
• FY23 Normalized FFO per share Guidance revised to $3.77 to $3.83 from $3.73 to $3.83, vs. consensus of $3.77
• Same store revenue increased 5.5% for the second quarter of 2023 compared to the second quarter of 2022. The Company increased its 2023 annual same store revenue growth guidance midpoint to 5.875% in May 2023.
• Same store expense growth for the second quarter of 2023 compared to the second quarter of 2022 was 5.5%. The Company expects lower same store expense growth in the second half of the year and has lowered its full year same store expense guidance midpoint down 25 basis points to 4.25% from 4.5%.

Comments

[ccking3]

Nice numbers. Apartment reits have been hit significantly perhaps because of some data claiming rents are declining. Well not here. EQR raised their guidance and rents are still positive. Normalized FFO was $0.94 in the quarter but forecast for 3Q is $0.95-$0.99 or 3 cents higher at the midpoint. That’s 3% higher for the coming third quarter at the midpoint. The 2Q results were 5.6% ahead of last year. I don’t have last year’s 3Q immediately at hand but EQR just raised its yearend normalized FFO by another 2 cents.

All in all solid performance though nothing spectacular. Suspect stock will move higher and recover the past several days selloff.