Equity Residential (NYSE: EQR) Surges 1.3% After Q1 FFO Exceeds Estimates
Equity Residential (EQR) stock rose 1.3% in after-hours trading on Tuesday following the release of its first-quarter 2024 financial results.
Q1 2024 Highlights:
* Funds from operations (FFO) of $0.93 per share, surpassing the average analyst estimate of $0.91
* Same-store revenue growth of 4.1% year-over-year
* Same-store expense increase of only 1.3%, with low or negative growth in primary expense categories
* Physical occupancy of 96.4% in April, compared to 95.8% in Q4 2023 and 96.3% in Q1 2023
Management Commentary:
President and CEO Mark J. Parrell attributed the positive results to strong demand from affluent renters, limited new apartment supply in the company’s primarily coastal markets, and a laser focus on expense management.
Q2 Outlook:
For the second quarter, EQR expects normalized FFO per share of $0.92-$0.96, in line with the consensus estimate of $0.96. Same-store net operating income is expected to increase during the quarter.
Property Sales:
During the quarter, EQR sold three properties, one each in Boston, Orange County, and San Francisco, totaling 504 apartment units for $248.5 million.
Conclusion:
Equity Residential’s strong demand dynamics, limited new supply, and focus on expense control continue to drive positive results. The company’s Q1 performance exceeded expectations, and its Q2 outlook remains in line with consensus estimates.
Conference Call:
EQR will hold a conference call to discuss its Q1 results on April 24 at 10:00 a.m. ET.