Equity Residential (EQR) Q3 2024 Earnings Call Transcript
Equity Residential (NYSE:EQR ) Q3 2024 Earnings Conference Call October 31, 2024 11:30 AM ET Company Participants Marty McKenna – Vice President, Investor Relations Mark Parrell – President and Chief Executive Officer Alex Brackenridge – Chief Investment Officer Michael Manelis – Chief Operating Officer Bob Garechana – Chief Financial Officer Conference Call Participants Eric Wolfe – Citi Steve Sakwa – Evercore ISI Haendel St. Juste – Mizuho Alexander Goldfarb – Piper Sandler John Pawlowski – Green Street John Kim – BMO Capital Markets Michael Goldsmith – UBS Adam Kramer – Morgan Stanley Josh Dennerlein – Bank of America Julien Blouin – Goldman Sachs Jamie Feldman – Wells Fargo Linda Tsai – Jefferies Alex Kim – Zelman & Associates Rich Anderson – Wedbush Operator Good day, and welcome to the Equity Residential Third Quarter 2024 Earnings Conference Call and Webcast. Today's conference is being recorded.
Equity Residential Q3 FFO Meets Estimates, Revenues Increase Y/Y
EQR's Q3 results reflect decent same-store performances, backed by healthy demand amid modest supply.
Compared to Estimates, Equity Residential (EQR) Q3 Earnings: A Look at Key Metrics
The headline numbers for Equity Residential (EQR) give insight into how the company performed in the quarter ended September 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Equity Residential (EQR) Meets Q3 FFO Estimates
Equity Residential (EQR) came out with quarterly funds from operations (FFO) of $0.98 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.96 per share a year ago.
Countdown to Equity Residential (EQR) Q3 Earnings: A Look at Estimates Beyond Revenue and EPS
Besides Wall Street's top -and-bottom-line estimates for Equity Residential (EQR), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended September 2024.
Real Estate Sector Outperforms: 3 Stocks to Gain Exposure
The real estate sector is holding firm in a bullish formation, displaying notable resilience compared to the broader market. The Real Estate Select Sector SPDR Fund ETF NYSE: XLRE has been consolidating near its highs, just 2.7% away from its 52-week peak, setting the stage for a potential breakout in the year's final quarter.
What's in Store for Equity Residential Stock in Q3 Earnings?
Despite high supply, EQR's Q3 results are likely to benefit from its portfolio diversification efforts and technology investments amid healthy demand.
Should You Retain Equity Residential Stock in Your Portfolio Now?
EQR's target of affluent renters and portfolio diversification efforts in suburban markets are upsides. However, an elevated supply of rental units is a concern.
The Latest Action In Apartment REITs Like Equity Residential Confirms Full Valuation
I initially recommended investing in undervalued apartment/multifamily REITs like EQR, AVB, ESS, CPT, and MAA, which have since outperformed significantly. Despite their strong fundamentals and past performance, current valuations make these REITs less attractive, leading me to change my rating to "Hold.". EQR, for instance, is trading at 24x P/AFFO, offering only a 3-4% annualized upside, which is insufficient for a "Buy" rating.
Equity Residential Stock Rises 20.8% YTD: Will the Trend Continue?
EQR to gain from favorable demographics driving market demand, its portfolio diversification efforts, technology initiatives and decent financial position.
Should You Retain Equity Residential in Your Portfolio Now?
EQR's strategy of targeting affluent renters and portfolio diversification are upsides. However, an elevated supply of rental units is a concern.
Equity Residential: Good Quality But Pricey
Equity Residential focuses on niche markets in highly dynamic and desirable cities with high home price to income ratios. The company benefits from renters staying due to financial incentives to rent over buying, but faces potential challenges with renter fatigue. Despite high occupancy rates and historical dividend growth, the company's premium valuation may deter some investors, especially in uncertain economic times.
