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Dec 31, 2023
Equity Residential Q4 2023 Earnings Report
Equity Residential reported Q4 2023 results, with EPS of $0.82 and Normalized FFO per share of $1.00. Same store revenue increased by 3.9%.
Key Takeaways
Equity Residential reported solid fourth-quarter results, with same-store revenue growth of 3.9% driven by strong demand. The company sold three properties in West Coast markets for $184.5 million and repurchased 864,386 common shares for $49.1 million during the quarter. Guidance for full year 2024 includes same-store revenue growth between 2.0% and 3.0%.
Same store revenue increased 3.9% for the fourth quarter of 2023 compared to the fourth quarter of 2022, driven by strong demand.
The Company has provided guidance for the full year 2024 with same store revenue growth expected to be between 2.0% and 3.0%.
During the fourth quarter of 2023, the Company sold three properties located in our West Coast markets (San Francisco, Seattle and Los Angeles), consisting of 499 apartment units, for an aggregate sale price of approximately $184.5 million.
During the fourth quarter of 2023, the Company repurchased and retired 864,386 of its common shares, at a weighted average purchase price of $56.79 per share, for an aggregate purchased amount of approximately $49.1 million.
Revenue by Geographic Location
Forward Guidance
Equity Residential provided guidance for the first quarter and full year 2024. The company expects same store revenue growth between 2.0% and 3.0% for the full year.
Positive Outlook
- Physical Occupancy: 95.9%
- Revenue change: 2.0% to 3.0%
- Expense change: 3.5% to 4.5%
- NOI change: 1.0% to 2.6%
- Consolidated rental acquisitions: $1.0B
Challenges Ahead
- Residential same store NOI impact is primarily driven by higher expected real estate taxes and utilities in the first quarter of 2024 versus the fourth quarter of 2023.
- This pattern of higher operating expenses is typical between the fourth quarter of the current year and the first quarter of the following year.
- Consolidated rental dispositions: $1.0B
- Transaction Accretion (Dilution): (25 basis points)
Historical Earnings Impact
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Avg. Return Before/After Earnings
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