Equity Residential Q1 2022 Earnings Report
Key Takeaways
Equity Residential reported a strong first quarter in 2022, with EPS of $0.19, FFO per share of $0.77, and Normalized FFO per share of $0.77. Revenue growth was driven by exceptionally strong demand, partially offset by higher than anticipated levels of new delinquency in Southern California. The company also saw same store NOI growth of 10.7% due to muted property tax increases and continuing efficiencies from innovation initiatives.
EPS increased by 26.7%, FFO per share increased by 14.9%, and Normalized FFO per share increased by 13.2% compared to the same period of 2021.
Same store revenue increased by 7.8% compared to the same period of 2021, driven by strong Physical Occupancy and significant growth in pricing power.
Same store expenses increased by 2.5%, reflecting the Company’s continued success in managing controllable expenses and modest growth in real estate tax expense.
Same store Turnover of 8.7% is the lowest in the Company’s history, reflecting a continued trend of historically high resident retention.
Equity Residential
Equity Residential
Forward Guidance
The Company has established guidance ranges for the second quarter of 2022 EPS, FFO per share and Normalized FFO per share as listed below: Q2 2022 Guidance EPS $1.00 to $1.04 FFO per share $0.82 to $0.86 Normalized FFO per share $0.82 to $0.86
Positive Outlook
- Higher expected same store NOI.
- Property sale gains.
- Physical Occupancy 96.5%
- Revenue change 8.0% to 10.0%
- Expense change 2.5% to 3.5%