Equity Residential raises annual FFO forecast on strong demand

Vivmark Residential

04/08/2025 22:43

Aug 4 (Reuters) - Equity Residential EQR.N raised its annual funds from operations forecast on Monday due to strong rental demand and relatively stable supply in its key markets.

The real estate investment trust now expects full-year FFO in the range of $4.03 to $4.09 per share, compared with its prior forecast of $3.87 to $3.97 per share.

The Chicago, Illinois-based REIT, which operates rental apartment properties across the United States, counts the acquisition, development and management of multifamily residential properties as its primary business, and holds a market value of $23.8 billion.

"We are seeing sustained demand and a financially resilient customer across all our markets, with new supply levels (as) the main determinant of market revenue performance," said CEO Mark Parrell.

The percentage of residents renewing their leases in the quarter remained healthy at 60.1%, compared to 57.6% last year, while physical occupancy increased to 96.6% in the quarter.

The company saw new lease growth rates decrease to 0.1% from last year, while renewal rates grew to 5.2% in the three-month period to June, compared to last year.

Equity Residential reported funds from operations, on a diluted basis, of 98 cents per share in the quarter ended June 30, compared to 94 cents per share a year earlier.

It reported quarterly revenue of $768.8 million, missing estimates of $770.3 million, according to data compiled by LSEG.

 (Reporting by Abhinav Parmar and Anshuman Tripathy in Bengaluru; Editing by Alan Barona)

 ((Abhinav.Parmar@thomsonreuters.com))