Equity Residential Q2 2024 Earnings Report
Key Takeaways
Equity Residential reported strong second-quarter results, exceeding expectations and raising full-year guidance. Key drivers include robust demand, modest supply, and improved operating efficiency.
Same store revenue increased 2.9% for the second quarter of 2024 compared to the second quarter of 2023, driven by strong demand and modest supply across most of our markets.
Same store expense increased 2.7% with low growth in primary expense categories, contributing to a 3.0% increase in same store Net Operating Income (NOI).
The Company raised the guidance midpoint for its same store revenues by 70 basis points to 3.2% driven by better Physical Occupancy and Blended Rate.
Subsequent to the end of the second quarter of 2024, the Company acquired two properties consisting of 644 apartment units, located in Atlanta and Dallas/Ft. Worth, for an aggregate acquisition price of $216.8 million.
Equity Residential
Equity Residential
Forward Guidance
Equity Residential has established guidance ranges for the third quarter of 2024 EPS, FFO per share and Normalized FFO per share.
Positive Outlook
- Expected Normalized FFO Per Share $0.96 to $1.00
- Physical Occupancy 96.2%
- Revenue change 2.9% to 3.5%
- Expense change 2.5% to 3.5%
- NOI change 3.0% to 3.5%
Challenges Ahead
- Interest expense, net $267.3M to $273.3M
- Property management expense $128.5M to $131.5M
- General and administrative expense $59.5M to $63.5M
- Capital Expenditures to Real Estate for Same Store Properties $295.0M
- Weighted average Common Shares and Units - Diluted 390.7M