Shares of Equity Residential have underperformed its industry, year to date. However, the stock has seen the Zacks Consensus Estimate for current-year funds from operations (FFO) per share remaining unchanged in a month’s time. The company’s second-quarter 2017 result reflected enhanced same-store and lease-up net operating income (NOI). However, it witnessed adverse impact on NOI, primarily stemming from its 2016 huge disposition activity. Going forward, the company is anticipated to benefit from efforts to reposition portfolio in high barrier-to-entry/core markets, favorable demographics, lifestyle transformation and creation of new households. Moreover, there is solid rental demand in its coastal, gateway cities. However, elevated supply in a number of its markets is likely to put pressure on rental rates and result in high concessions.