Equity Residential (EQR Quick QuoteEQR - Free Report) is slated to report second-quarter 2025 results after the closing bell on Aug. 4. The company’s quarterly results are likely to reflect growth in both revenues and funds from operations (FFO) per share year over year.

In the last reported quarter, this Chicago, IL-based residential real estate investment trust (REIT) came up with normalized FFO per share of 95 cents, which outpaced the Zacks Consensus Estimate of 93 cents. Results reflected a rise in same-store revenues and physical occupancy on a year-over-year basis.

Over the trailing four quarters, Equity Residential surpassed the Zacks Consensus Estimate on two occasions for as many in-line performances, the average surprise being 0.80%. The graph below depicts this surprise history:

Equity Residential Price and EPS Surprise

Equity Residential price-eps-surprise | Equity Residential Quote

As we approach the release of Equity Residential's second-quarter 2025 earnings report, it is important to examine how this residential REIT is likely to have performed amid the current market conditions.

US Apartment Market in Q2

The U.S. apartment market remained impressively resilient in the second quarter of 2025, absorbing more than 227,000 units between April and June, a robust second-quarter figure. According to RealPage data, annual absorption surpassed even the peak leasing surge of 2021 and early 2022, defying a backdrop of slowing job growth, weak business sentiment and broader economic uncertainty.

While rent growth stayed muted, up just 0.19% in June, occupancy climbed steadily. At 95.6% in June, national occupancy rose 140 basis points year over year. Operators appear focused on maximizing occupancy, even if it means sacrificing rent increases. This “heads-in-beds” approach supports stability during a period of high new supply.

Supply, though moderating, remains historically elevated. More than 535,000 units were completed in the past year, with roughly 108,000 delivered in the second quarter alone. Yet, the market’s ability to digest this volume underscores its underlying strength.

Regionally, tech-driven markets like San Francisco and San Jose, as well as Boston and New York, gained momentum — likely aided by easing supply and increased return-to-office trends. Sun Belt markets, such as Dallas, Atlanta and Jacksonville, FL, also showed signs of recovery in the second quarter, sustaining robust demand amid declining deliveries. Tourism-dependent cities, like Las Vegas, Orlando, FL, and Nashville, TN, faltered slightly, possibly reflecting softening discretionary spending. Supply-heavy markets like Austin, Phoenix and Denver continued to see the sharpest rent cuts.

Projections for EQR

Equity Residential’s second-quarter performance might have been positively impacted by robust demand due to the high cost of home ownership. Moreover, with a strong balance sheet, Equity Residential leverages technology, scale and operational efficiency to fuel growth.

The company’s efforts toward repositioning its portfolio by acquiring newer properties in submarkets with high numbers of affluent renters, favorable long-term demand drivers and manageable forward supply are likely to have contributed to steady revenue growth in the to-be-reported quarter. However, an elevated supply of rental properties may have presented a headwind.

Currently, the Zacks Consensus Estimate for the company’s quarterly revenues stands at $769.26 million, which indicates a 4.78% rise year over year.

We expect second-quarter same-store revenues and same-store net operating income (NOI) to increase 1.8% year over year. Physical occupancy is expected at 96.5%.

For the second quarter of 2025, the company projects normalized FFO per share between 96 cents and $1.00. EQR’s activities, before the second-quarter earnings release, were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly normalized FFO per share has remained unchanged at 99 cents for more than three months. However, it suggests growth of 2.06% year over year.

Here Is What Our Quantitative Model Predicts for EQR:

Our proven model does not conclusively predict a surprise in terms of FFO per share for Equity Residential this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.

Equity Residential currently carries a Zacks Rank of 2 and has an Earnings ESP of -0.04%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a Look

Here are two stocks from the broader REIT sector — VICI Properties (VICI Quick QuoteVICI - Free Report) and Cousins Properties (CUZ Quick QuoteCUZ - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report an earnings surprise this quarter.

VICI, slated to release quarterly numbers on July 30, has an Earnings ESP of +15.43% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cousins, scheduled to report quarterly numbers on July 31, has an Earnings ESP of +0.36% and carries a Zacks Rank of 3.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.