Equity Residential Provides Operating Update

Rhea-AI Summary

Equity Residential (NYSE: EQR) provided an update on its same-store residential operating trends, indicating that revenue growth is on track to meet or exceed guidance. The company is experiencing strong demand and pricing for apartments, with peak rents expected in early August 2022. Key metrics include a blended rate of 11.8% for August and physical occupancy of 96.6%. The report highlights a healthy renewal rate, with 52% of residents renewing monthly leases. The company owns 309 properties with 79,730 units across major U.S. cities.

Positive

• Revenue growth aligns with or exceeds guidance expectations.
• Strong demand and pricing for apartment units indicate market strength.
• Blended rate for August 2022 at 11.8%, showcasing rental pricing strength.
• Physical occupancy remains robust at 96.6%.

Negative

• Rents are expected to moderate for the remainder of the year, indicating potential revenue pressure.

CHICAGO--(BUSINESS WIRE)-- Equity Residential (NYSE: EQR) today provided an update regarding certain same store Residential operating trends in its business.

Same store revenue growth remains on track to meet or exceed the midpoint of the Company’s guidance range described in its second quarter 2022 earnings release. The Company is finishing a strong leasing season with very healthy demand and pricing for its apartment units. Consistent with normal seasonal demand patterns, in early August 2022 rents peaked for the year and the Company expects rents to moderate for the balance of the year. The Company also provided the following same store Residential operating metrics:

		June 2022		July 2022		August 2022 (1)
Blended Rate:		14.3%		12.8%		11.8%
Physical Occupancy:		96.7%		96.5%		96.6%
Percentage of Residents
Renewing by Month:		55%		52%		52%

1.

August 2022 results are preliminary.

About Equity Residential

Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. Equity Residential owns or has investments in 309 properties consisting of 79,730 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin. For more information on Equity Residential, please visit our website at www.equityapartments.com.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential’s management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, competition and government regulation. In addition, these forward-looking statements are subject to risks related to the COVID-19 pandemic, many of which are unknown, including the duration and severity of the pandemic, the extent of the adverse health impact on the general population and on our residents, customers and employees in particular, its impact on the employment rate and the economy and the corresponding impact on our residents’ and tenants’ ability to pay their rent on time or at all, the extent and impact of governmental responses, the rollout and effectiveness of vaccines and the impact of operational changes we have implemented and may implement in response to the pandemic. Other risks and uncertainties are described under the heading “Risk Factors” in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityapartments.com. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Terms and Definitions:

Blended Rate – The weighted average of New Lease Change and Renewal Rate Achieved.

Leasing Concessions – Reflects upfront discounts on both new move-in and renewal leases on a straight-line basis.

New Lease Change – The net effective change in rent (inclusive of Leasing Concessions) for a lease with a new or transferring resident compared to the rent for the prior lease of the identical apartment unit, regardless of lease term.

Percentage of Residents Renewing – Leases renewed expressed as a percentage of total renewal offers extended during the reporting period.

Physical Occupancy – The weighted average occupied apartment units for the reporting period divided by the average of total apartment units available for rent for the reporting period.

Renewal Rate Achieved – The net effective change in rent (inclusive of Leasing Concessions) for a new lease on an apartment unit where the lease has been renewed as compared to the rent for the prior lease of the identical apartment unit, regardless of lease term.

Residential – Consists of multifamily apartment revenues and expenses.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220830005986/en/

Marty McKenna

(312) 928-1901

mmckenna@eqr.com

Source: Equity Residential

FAQ

What are the recent revenue trends for Equity Residential (EQR) in August 2022?

Equity Residential reported that same-store revenue growth is on track to meet or exceed guidance, with a blended rate of 11.8% for August 2022.

How is the occupancy rate for Equity Residential properties as of August 2022?

The physical occupancy rate is 96.6%, indicating strong demand for their apartment units.

What is the future outlook for rents according to Equity Residential's August 2022 report?

The company expects rents to moderate for the balance of the year following peak rents in early August 2022.

What percentage of residents are renewing leases at Equity Residential?

As of August 2022, 52% of residents are renewing their leases monthly.