Equity Residential Provides Operating Update

Rhea-AI Summary

Equity Residential (EQR) reports robust same-store revenue growth, indicating strong demand and pricing for its apartment units as the leasing season concludes. Key metrics include a blended rate increase of up to 9.7% and a physical occupancy rate of 96.9% in September 2021. The percentage of residents renewing leases has steadily grown, reaching 62% by September. The company remains optimistic about achieving expectations set in its Q2 2021 earnings report. EQR operates 307 properties with 79,322 apartment units across major U.S. cities.

Positive

• Same-store revenue growth on track to exceed expectations.
• Strong leasing demand and pricing in the apartment market.
• Blended rate increased significantly, reaching 9.7% in September 2021.
• High physical occupancy rate at 96.9% in September 2021.
• Rising lease renewal percentage, peaking at 62%.

Negative

• None.

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 slightly exceed the Company’s expectations described in its second quarter 2021 earnings release as the Company is finishing a strong leasing season with very healthy demand and pricing for its apartment units.

The Company also provided the following same store Residential operating metrics:

		June 2021		July 2021		August 2021		September 2021 (1)
Blended Rate:		0.6%		5.1%		8.2%		9.7%
Physical Occupancy (2):		96.3%		96.7%		96.7%		96.9%
Percentage of Residents Renewing by Month:		53%		54%		58%		62%

1.		September 2021 results are preliminary.
2.		Physical Occupancy is as of month end, with the exception of September 2021, when it is as of September 21, 2021.

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 high quality long-term renters. Equity Residential owns or has investments in 307 properties consisting of 79,322 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 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 local 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 discount 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/20210921006080/en/

Marty McKenna

(312) 928-1901

mmckenna@eqr.com

Source: Equity Residential

FAQ

What is the blended rate increase reported by Equity Residential in September 2021?

Equity Residential reported a blended rate increase of 9.7% for September 2021.

What was the physical occupancy rate for Equity Residential in September 2021?

The physical occupancy rate for Equity Residential was 96.9% in September 2021.

How many properties does Equity Residential own?

Equity Residential owns or has investments in 307 properties.

What percentage of residents renewed their leases in September 2021?

In September 2021, 62% of residents renewed their leases.

Is Equity Residential's same-store revenue growth meeting expectations?

Yes, Equity Residential's same-store revenue growth is on track to meet or slightly exceed expectations.