A Business at a Glance
0 of 1 daily views used (1 remaining). Sign up free for +5 more daily views (6 total), or try AAPL for a full preview.
EQUITY RESIDENTIAL
EQR
$25.8B
Mkt Cap
$67.86
-0.62%
EQUITY RESIDENTIAL (EQR) has a current P/E ratio of 23.1, compared to its historical median P/E of 24.8. The stock is currently considered Fair based on its historical valuation range.
EQUITY RESIDENTIAL (EQR) has a 5-year average return on invested capital (ROIC) of 6.8%. This is below average and may indicate limited pricing power.
EQUITY RESIDENTIAL (EQR) has a market capitalization of $25.4B. It is classified as a large-cap stock.
Yes, EQUITY RESIDENTIAL (EQR) pays a dividend with a trailing twelve-month yield of 4.14%. The company also returns capital through share buybacks, with a buyback yield of 1.10%.
Based on historical P/E analysis, EQUITY RESIDENTIAL (EQR) appears fair. The current P/E of 23.1 is 7% below its historical median of 24.8. The estimated fair value CAGR (P/E method) is 1.4%.
EQUITY RESIDENTIAL (EQR) operates in the Real Estate Investment Trusts industry, within the Real Estate sector.
EQUITY RESIDENTIAL (EQR) reported annual revenue of $3.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
Equity Residential is a Maryland REIT and one of the largest publicly-traded owners and operators of multifamily rental properties in the United States, with a portfolio concentrated in major coastal markets including Boston, New York, Washington D.C., Southern California, San Francisco, and Seattle, complemented by targeted presence in Denver, Atlanta, Dallas/Fort Worth, and Austin. The company generates revenue through rental income from apartment communities and other ancillary services such as bulk internet programs and resident fees, operating with a focus on balancing occupancy and rental rates to maximize cash flow while maintaining tight cost control through technology-enabled operations and centralized management processes. EQR's business model emphasizes long-term capital appreciation and consistent cash flow generation by targeting markets with large diverse economic drivers, high single-family home ownership costs, strong job growth in knowledge-based sectors, and favorable supply-demand dynamics, while leveraging an industry-leading operating platform that combines automation, centralization, and customer service excellence to drive resident retention and pricing power. The company's competitive advantages include its portfolio positioning in supply-constrained markets, particularly San Francisco and New York which represent approximately 30% of net operating income, a sophisticated technology infrastructure for property management and resident engagement, and a disciplined capital allocation strategy that balances acquisitions, developments, and renovations across its diversified geographic footprint. EQR's target customer base consists of affluent, highly educated, well-employed renters who are attracted to the company's well-located communities in dynamic metro areas, with particular emphasis on younger demographics including Generation Z and Millennials who are choosing rental lifestyles due to housing affordability constraints and lifestyle preferences, as well as aging Baby Boomers downsizing into vibrant urban centers.
【Supply-driven recovery ahead】 Management expects 2026 to benefit from a dramatic decline in new apartment deliveries, with supply projected to fall 35% compared to 2025, creating a favorable backdrop for pricing power and revenue growth as the year progresses. The company anticipates that concessions will materially decline in the second half of 2026 relative to 2025 levels, with full-year concession reductions of approximately 20%, while blended rate growth is expected to range between 1.5% and 3% as achieved renewal rates remain stable around 4.5% and new lease pricing improves with reduced concession use. San Francisco and New York are positioned as particular strength areas given their low supply outlook and strong demand from the company's target higher-earning renter demographic, with these markets expected to continue delivering outsized performance and providing relative strength versus peers. Management remains focused on operational execution and maintaining portfolio occupancy above 96% while leveraging technology innovations to reduce on-site payroll by 5%-10% over the next several years, positioning the company for sustained value creation as market conditions normalize and job growth potentially accelerates through 2026 and into 2027.
| Metric | Target | Period |
|---|---|---|
| Blended rate growth | 1.5% to 3% | FY2026 |
| Same Store expense growth | 3% to 4% | FY2026 |
| Normalized FFO per share | $4.08 | FY2026 |
| Achieved renewal rate increase | ~4.5% | FY2026 |
| New supply deliveries decline | 35% decline | 2026 vs 2025 |
| Concessions reduction | ~20% reduction | FY2026 |
Blended rate growth (FY2026): “we expect blended rate growth to be between 1.5% and 3% for the year”
Same Store expense growth (FY2026): “we anticipate 2026 Same Store expense growth to range between 3%-4%”
Normalized FFO per share (FY2026): “the midpoint of our 2026 guidance, $4.08 per share, a 2.25% improvement over last year”
Achieved renewal rate increase (FY2026): “we expect achieved renewal rate increases to remain somewhere around 4.5% for the next several months”
New supply deliveries decline (2026 vs 2025): “we expect deliveries in our markets to be down 35% in 2026 versus 2025”
Concessions reduction (FY2026): “I would still model somewhere about 20% reduction relative to what we used in 2025”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 3.1B | 3.1B | 3.0B | 2.9B | 3.1B | 2.5B |
| Net Income | 952M | 1.1B | 1.0B | 832M | 774M | 1.3B |
| EPS | $2.51 | $2.94 | $2.72 | $2.20 | $2.05 | $3.54 |
| Free Cash Flow | 0 | 987M | -21M | 1.2B | 1.3B | -452M |
| ROIC | 0.0% | 7.2% | 6.8% | 5.9% | 5.5% | 8.5% |
| Gross Margin | - | 49.1% | 40.9% | 42.0% | 37.3% | 47.6% |
| Debt/Equity | 0.70 | 0.80 | 0.79 | 0.71 | 0.80 | 0.86 |
| Dividends/Share | $2.81 | $2.77 | $2.70 | $2.65 | $2.50 | $2.40 |
| Operating Income | 0 | 1.4B | 1.3B | 1.2B | 1.1B | 1.7B |
| Operating Margin | 0.0% | 46.1% | 44.3% | 40.4% | 36.1% | 68.0% |
| ROE | 8.9% | 10.1% | 9.3% | 7.5% | 7.0% | 12.4% |
| Shares Outstanding | 375M | 380M | 380M | 378M | 377M | 376M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 2.6B | 2.7B | 2.4B | 2.5B | 2.6B | 2.7B | 2.6B | 2.5B | 3.1B | 2.9B | 3.0B | 3.1B | 3.1B |
| Gross Margin | 37.2% | 38.8% | 39.3% | 42.3% | 44.7% | 52.7% | 50.9% | 47.6% | 37.3% | 42.0% | 40.9% | 49.1% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 51M | 65M | 58M | 52M | 54M | 53M | 48M | 57M | 59M | 61M | 62M | 65M | 64M |
| EBIT | 922M | 1.0B | 856M | 1.0B | 1.1B | 1.4B | 1.3B | 1.7B | 1.1B | 1.2B | 1.3B | 1.4B | 0 |
| Op. Margin | 35.2% | 36.8% | 35.3% | 40.6% | 43.2% | 50.2% | 51.2% | 68.0% | 36.1% | 40.4% | 44.3% | 46.1% | 0.0% |
| Net Income | 627M | 863M | 4.3B | 600M | 654M | 967M | 911M | 1.3B | 774M | 832M | 1.0B | 1.1B | 952M |
| Net Margin | 24.0% | 31.4% | 176.8% | 24.3% | 25.4% | 35.8% | 35.4% | 54.0% | 25.0% | 29.0% | 34.7% | 36.2% | 30.6% |
| Non-Recurring | 57K | 526K | 58M | 1.7M | 702K | 0 | 0 | 40M | 2.1M | 1.5M | -2.0M | -51K | -51K |
| Returns on Capital | |||||||||||||
| ROIC | 6.7% | 6.4% | 34.2% | 4.9% | 5.1% | 6.8% | 6.7% | 8.5% | 5.5% | 5.9% | 6.8% | 7.2% | 0.0% |
| ROE | 6.0% | 8.3% | 41.4% | 5.9% | 6.4% | 9.4% | 8.7% | 12.4% | 7.0% | 7.5% | 9.3% | 10.1% | 8.9% |
| ROA | 2.7% | 3.7% | 19.6% | 2.9% | 3.2% | 4.7% | 4.4% | 6.4% | 3.7% | 4.1% | 5.1% | 5.4% | 4.6% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 1.3B | 1.4B | 1.2B | 1.3B | 1.4B | 1.5B | 1.3B | 1.3B | 1.5B | 1.5B | 1.6B | 1.6B | 1.6B |
| Free Cash Flow | 1.1B | 1.4B | 1.2B | 1.3B | 1.4B | 1.3B | 1.2B | -452M | 1.3B | 1.2B | -21M | 987M | 0 |
| Owner Earnings | 534M | 553M | 475M | 493M | 539M | 601M | 422M | 394M | 543M | 612M | 590M | 606M | 591M |
| CapEx | 186M | 4.0M | 5.7M | 1.5M | 4.5M | 178M | 49M | 1.7B | 113M | 324M | 1.6B | 662M | 0 |
| Maint. CapEx | 762M | 769M | 709M | 748M | 790M | 831M | 821M | 838M | 882M | 889M | 952M | 1.0B | 1.0B |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 874M | 0 | 0 | 643M | 0 | 0 |
| D&A | 762M | 769M | 709M | 748M | 790M | 831M | 821M | 838M | 882M | 889M | 952M | 1.0B | 1.0B |
| CapEx/OCF | 14.0% | 13.4% | 0.5% | 0.1% | 13.9% | 12.2% | 10.7% | 12.0% | 15.2% | 20.8% | 19.2% | 20.7% | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 777M | 785M | 4.8B | 739M | 782M | 831M | 884M | 900M | 932M | 990M | 1.0B | 1.0B | 1.1B |
| Dividend Yield | 6.0% | 4.8% | 28.5% | 4.2% | 4.4% | 3.6% | 4.7% | 3.7% | 3.8% | 4.7% | 4.2% | 4.2% | 4.1% |
| Share Buybacks | 1.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 49M | 38M | 281M | 281M |
| Buyback Yield | 0.0% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.2% | 0.1% | 1.2% | 1.1% |
| Stock-Based Comp | 28M | 35M | 31M | 25M | 27M | 24M | 23M | 28M | 30M | 32M | 31M | 32M | 31M |
| Debt Repayment | 101M | 369M | 0 | 0 | 6.6M | 6.8M | 7.8M | 7.5M | 3.4M | 3.4M | 6.1M | 6.8M | 6.8M |
| Balance Sheet | |||||||||||||
| Net Debt | 5.7B | 9.7B | 6.0B | 14.1B | 9.4B | 10.1B | 8.5B | 9.3B | 8.9B | 7.8B | 8.7B | 8.8B | 7.5B |
| Cash & Equiv. | 40M | 42M | 77M | 51M | 47M | 46M | 43M | 124M | 54M | 51M | 62M | 56M | 35M |
| Long-Term Debt | 5.4B | 5.8B | 4.4B | 9.1B | 8.9B | 9.1B | 8.1B | 8.4B | 7.5B | 7.5B | 8.2B | 8.2B | 6.0B |
| Debt/Equity | 0.56 | 0.93 | 0.60 | 1.38 | 0.93 | 0.98 | 0.81 | 0.86 | 0.80 | 0.71 | 0.79 | 0.80 | 0.70 |
| Interest Coverage | 709.0 | 2.3 | 1.8 | 2.6 | 2.7 | 3.5 | 3.6 | 6.2 | 3.9 | 4.3 | 4.6 | 4.7 | 4.7 |
| Equity | 10.4B | 10.5B | 10.2B | 10.2B | 10.2B | 10.3B | 10.5B | 11.0B | 11.2B | 11.1B | 11.0B | 11.0B | 10.7B |
| Total Assets | 23.0B | 23.1B | 20.7B | 20.6B | 20.4B | 21.2B | 20.3B | 21.2B | 20.2B | 20.0B | 20.8B | 20.7B | 20.5B |
| Total Liabilities | 11.7B | 11.8B | 9.8B | 9.7B | 9.6B | 10.2B | 9.2B | 9.5B | 8.5B | 8.5B | 9.2B | 9.3B | 9.5B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | 2.0B | 2.0B | 1.5B | 1.4B | 1.3B | 1.4B | 1.4B | 1.8B | 1.7B | 1.4B | 1.4B | 1.2B | 801M |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 1.73 | 2.36 | 11.68 | 1.63 | 1.77 | 2.60 | 2.45 | 3.54 | 2.05 | 2.20 | 2.72 | 2.94 | 2.51 |
| Owner EPS | 1.47 | 1.51 | 1.29 | 1.34 | 1.46 | 1.62 | 1.13 | 1.05 | 1.44 | 1.62 | 1.55 | 1.59 | 1.58 |
| Book Value | 28.60 | 28.62 | 27.86 | 27.81 | 27.51 | 27.73 | 28.32 | 29.16 | 29.60 | 29.30 | 29.09 | 29.02 | 28.48 |
| Cash Flow/Share | 3.65 | 3.71 | 3.31 | 3.44 | 3.67 | 3.92 | 3.41 | 3.35 | 3.85 | 4.05 | 4.14 | 4.33 | 5.21 |
| Dividends/Share | 2.00 | 2.21 | 13.02 | 2.02 | 2.16 | 2.23 | 2.38 | 2.40 | 2.50 | 2.65 | 2.70 | 2.77 | 2.81 |
| Shares Out. | 362.5M | 365.8M | 367.2M | 368.3M | 369.7M | 372.0M | 371.7M | 375.6M | 377.5M | 378.3M | 379.7M | 380.5M | 374.7M |
| Valuation | |||||||||||||
| P/E Ratio | 24.7 | 20.5 | 3.9 | 29.1 | 28.6 | 24.5 | 19.9 | 21.5 | 25.1 | 25.9 | 25.0 | 21.2 | 27.0 |
| P/FCF | 13.6 | 13.1 | 13.8 | 13.8 | 13.8 | 18.5 | 14.9 | N/A | 14.4 | 17.9 | N/A | 24.1 | N/A |
| EV/EBIT | 23.1 | 23.8 | 25.0 | 26.8 | 22.5 | 22.7 | 18.0 | 20.6 | 22.2 | 24.7 | 24.4 | 21.2 | N/A |
| Price/Book | 1.5 | 1.7 | 1.6 | 1.7 | 1.8 | 2.3 | 1.7 | 2.6 | 1.7 | 1.9 | 2.3 | 2.2 | 2.4 |
| Price/Sales | 5.0 | 6.0 | 6.9 | 7.1 | 6.9 | 8.5 | 7.3 | 9.9 | 9.1 | 7.3 | 8.1 | 8.0 | 8.2 |
| FCF Yield | 7.3% | 7.6% | 7.2% | 7.2% | 7.2% | 5.4% | 6.7% | -1.6% | 6.9% | 5.6% | -0.1% | 4.2% | N/A |
| Market Cap | 15.6B | 17.9B | 16.7B | 17.5B | 18.7B | 23.7B | 18.1B | 28.6B | 19.4B | 21.6B | 25.8B | 23.7B | 25.4B |
| Avg. Price | 35.67 | 44.60 | 45.65 | 47.81 | 48.17 | 61.46 | 50.57 | 64.76 | 65.78 | 55.31 | 63.74 | 64.76 | 67.86 |
| Year-End Price | 42.66 | 48.46 | 45.44 | 47.48 | 50.63 | 63.75 | 48.64 | 76.11 | 51.36 | 57.07 | 68.02 | 62.40 | 67.86 |
EQUITY RESIDENTIAL passes 2 of 9 quality checks, indicating weak fundamentals.
EQUITY RESIDENTIAL trades at 23.1x trailing earnings, compared to its 15-year median P/E of 24.8x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 19.6x vs a median of 14.7x. The company's 5-year average ROIC is 6.8% with a gross margin of 43.4%. Total shareholder yield (dividends + buybacks) is 5.2%. At current prices, the estimated annualized return to fair value is +0.6%.
EQUITY RESIDENTIAL (EQR) has a net profit margin of 36.2%. This is a strong margin indicating high profitability.
EQUITY RESIDENTIAL (EQR) generated $987 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
EQUITY RESIDENTIAL (EQR) has a debt-to-equity ratio of 0.80. This indicates moderate leverage.
EQUITY RESIDENTIAL (EQR) reported earnings per share (EPS) of $2.94 in its most recent fiscal year.
EQUITY RESIDENTIAL (EQR) has a return on equity (ROE) of 10.1%. This indicates moderate shareholder returns.
EQUITY RESIDENTIAL (EQR) has a 5-year average gross margin of 43.4%. This indicates decent pricing power.
The Ledger Terminal provides 19 years of financial data for EQUITY RESIDENTIAL (EQR), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
EQUITY RESIDENTIAL (EQR) has a book value per share of $29.02, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects 2026 to benefit from a dramatic decline in new apartment deliveries, with supply projected to fall 35% compared to 2025, creating a favorable backdrop for pricing power and revenue growth as the year progresses. The company anticipates that concessions will materially decline in the second half of 2026 relative to 2025 levels, with full-year concession reductions of approximately 20%, while blended rate growth is expected to range between 1.5% and 3% as achieved renewal rates remain stable around 4.5% and new lease pricing improves with reduced concession use. San Francisco and New York are positioned as particular strength areas given their low supply outlook and strong demand from the company's target higher-earning renter demographic, with these markets expected to continue delivering outsized performance and providing relative strength versus peers. Management remains focused on operational execution and maintaining portfolio occupancy above 96% while leveraging technology innovations to reduce on-site payroll by 5%-10% over the next several years, positioning the company for sustained value creation as market conditions normalize and job growth potentially accelerates through 2026 and into 2027.
Based on recent SEC filings and earnings calls, EQUITY RESIDENTIAL (EQR) has provided the following forward guidance: Blended rate growth: 1.5% to 3% (FY2026); Same Store expense growth: 3% to 4% (FY2026); Normalized FFO per share: $4.08 (FY2026); Achieved renewal rate increase: ~4.5% (FY2026); New supply deliveries decline: 35% decline (2026 vs 2025), plus 1 additional metric.