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Per Equity Residential’s (EQR - Free Report) recently released operating update, the company concluded a strong leasing season driven by healthy demand and pricing for its apartment units. As a result, the same-store revenue growth is on track to either match or surpass EQR’s projections mentioned in its second-quarter 2022 earnings release.
Looking at some of Equity Residential’s same-store operating trends, we notice that the physical occupancy remained high through June and July at 96.7% and 96.5%, respectively. The preliminary physical occupancy rate for August was 96.6%.
The percentage of residents renewing by month has remained above 50% in each of the past three months. The same in June was recorded at 55% while in July and August, it remained steady at 52%.
The blended rate in June came in at 14.3% and started to decline from then on. In July, the figure fell to 12.8% and declined to 11.8% in August.
Considering the normal seasonal demand patterns, the rents for the year have peaked earlier this August. Management expects rents to start moderating out from here on for the remainder of 2022.
The company posted strong second-quarter 2022 results, with the top line rising 14.9% year over year. Backed by robust demand and continued strong cost controls, management increased the guidance for 2022. It expects normalized funds from operations (FFO) per share in the band of $3.48-$3.58, indicating an 8-cent increase at the midpoint from the prior guidance.
Equity Residential has a dominating presence in Boston, New York, Washington, DC, Seattle, San Francisco and Southern California and has been expanding its presence in Denver, Atlanta and Austin. The recent migration trends of affluent renters, who are opting for suburban locations, have made EQR diversify its portfolio and increase its reach to the suburban markets. These efforts to capture the renter demand in these markets are likely to pay off well.
Moreover, EQR’s focus on technology and organizational capabilities to improve the efficiency of its operating platform and a solid balance-sheet position with ample liquidity and financial flexibility are likely to aid its growth endeavors.
Analysts too seem bullish on this Zacks Rank # 2 (Buy) stock. The Zacks Consensus Estimate for the company’s 2022 FFO per share has moved marginally northward in the past week to $3.51.
Shares of this residential REIT have gained 1.3% against its industry’s decline of 0.6% in the quarter-to-date period.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the residential REIT sector are Independence Realty Trust (IRT - Free Report) , Armada Hoffler Properties (AHH - Free Report) and BRT Apartments (BRT - Free Report) .
The Zacks Consensus Estimate for Independence Realty Trust’s current-year FFO per share has moved 1.9% northward in the past month to $1.08. IRT carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Armada Hoffler Properties’ ongoing year’s FFO per share has been raised marginally over the past month to $1.18. AHH presently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for BRT Apartments’ 2022 FFO per share has moved 5.8% upward in the past month to $1.63. BRT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Equity Residential's (EQR) Operating Trends Remain Strong
Per Equity Residential’s (EQR - Free Report) recently released operating update, the company concluded a strong leasing season driven by healthy demand and pricing for its apartment units. As a result, the same-store revenue growth is on track to either match or surpass EQR’s projections mentioned in its second-quarter 2022 earnings release.
Looking at some of Equity Residential’s same-store operating trends, we notice that the physical occupancy remained high through June and July at 96.7% and 96.5%, respectively. The preliminary physical occupancy rate for August was 96.6%.
The percentage of residents renewing by month has remained above 50% in each of the past three months. The same in June was recorded at 55% while in July and August, it remained steady at 52%.
The blended rate in June came in at 14.3% and started to decline from then on. In July, the figure fell to 12.8% and declined to 11.8% in August.
Considering the normal seasonal demand patterns, the rents for the year have peaked earlier this August. Management expects rents to start moderating out from here on for the remainder of 2022.
The company posted strong second-quarter 2022 results, with the top line rising 14.9% year over year. Backed by robust demand and continued strong cost controls, management increased the guidance for 2022. It expects normalized funds from operations (FFO) per share in the band of $3.48-$3.58, indicating an 8-cent increase at the midpoint from the prior guidance.
Equity Residential has a dominating presence in Boston, New York, Washington, DC, Seattle, San Francisco and Southern California and has been expanding its presence in Denver, Atlanta and Austin. The recent migration trends of affluent renters, who are opting for suburban locations, have made EQR diversify its portfolio and increase its reach to the suburban markets. These efforts to capture the renter demand in these markets are likely to pay off well.
Moreover, EQR’s focus on technology and organizational capabilities to improve the efficiency of its operating platform and a solid balance-sheet position with ample liquidity and financial flexibility are likely to aid its growth endeavors.
Analysts too seem bullish on this Zacks Rank # 2 (Buy) stock. The Zacks Consensus Estimate for the company’s 2022 FFO per share has moved marginally northward in the past week to $3.51.
Shares of this residential REIT have gained 1.3% against its industry’s decline of 0.6% in the quarter-to-date period.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the residential REIT sector are Independence Realty Trust (IRT - Free Report) , Armada Hoffler Properties (AHH - Free Report) and BRT Apartments (BRT - Free Report) .
The Zacks Consensus Estimate for Independence Realty Trust’s current-year FFO per share has moved 1.9% northward in the past month to $1.08. IRT carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Armada Hoffler Properties’ ongoing year’s FFO per share has been raised marginally over the past month to $1.18. AHH presently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for BRT Apartments’ 2022 FFO per share has moved 5.8% upward in the past month to $1.63. BRT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.