Same Store Results Continue to Exceed
Expectations
Equity Residential (NYSE: EQR) today announced that members of
the Company’s senior management team, including the Company’s
President and CEO, Mark J. Parrell, will participate in meetings
with investors and analysts at the Nareit REITWeek 2024 Investor
Conference. In connection with these meetings, the Company has
posted an updated Investor Presentation to the Investor section of
the Company’s website at www.equityapartments.com.
Operating Update
The Company’s Earnings Per Share (EPS) and Funds from
Operations(FFO) per share are expected to be in the bottom half of
the full year guidance ranges reaffirmed in the Company’s Q1 2024
Earnings Release made public on April 23, 2024 due to the
litigation reserve adjustment made during the first quarter.
Normalized FFO per share, same store revenue and same store net
operating income (NOI) are trending towards the top of their
respective full year guidance ranges.
The Company provided the following updated operating statistics
in the Investor Presentation:
Residential Same Store Operating Statistics
The following table includes select operating metrics for
Residential Same Store Properties (for 77,211 same store apartment
units):
May 2024(1)
Q1 2024
Q4 2023
Physical Occupancy
96.5%
96.3%
95.8%
Percentage of Residents Renewing
by quarter/month
57.0%
61.1%
59.1%
New Lease Change
0.4%
(2.2%)
(4.6%)
Renewal Rate Achieved
5.0%
4.7%
5.1%
Blended Rate
2.9%
1.6%
0.7%
- May 2024 results are preliminary as of May 24, 2024.
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
affluent long-term renters. Equity Residential owns or has
investments in 299 properties consisting of 79,688 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/Ft. Worth 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, government
regulations (such as eviction moratoriums) and competition. These
and 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.
Earnings Per Share ("EPS") – Net income per share
calculated in accordance with GAAP. Expected EPS is calculated on a
basis consistent with actual EPS. Due to the uncertain timing and
extent of property dispositions and the resulting gains/losses on
sales, actual EPS could differ materially from expected EPS.
FFO and Normalized FFO:
Funds From Operations (“FFO”) – Nareit
defines FFO (December 2018 White Paper) as net income (computed in
accordance with GAAP), excluding gains or losses from sales and
impairment write-downs of depreciable real estate and land when
connected to the main business of a REIT, impairment write-downs of
investments in entities when the impairment is directly
attributable to decreases in the value of depreciable real estate
held by the entity and depreciation and amortization related to
real estate. Adjustments for partially owned consolidated and
unconsolidated partnerships and joint ventures are calculated to
reflect FFO on the same basis. Expected FFO per share is calculated
on a basis consistent with actual FFO per share and is considered
an appropriate supplemental measure of expected operating
performance when compared to expected EPS.
The Company believes that FFO and FFO
available to Common Shares and Units are helpful to investors as
supplemental measures of the operating performance of a real estate
company, because they are recognized measures of performance by the
real estate industry and by excluding gains or losses from sales
and impairment write-downs of depreciable real estate and excluding
depreciation related to real estate (which can vary among owners of
identical assets in similar condition based on historical cost
accounting and useful life estimates), FFO and FFO available to
Common Shares and Units can help compare the operating performance
of a company’s real estate between periods or as compared to
different companies.
Normalized Funds From Operations
("Normalized FFO" or "NFFO") – Normalized FFO begins with FFO
and excludes:
· the impact of any expenses relating to
non-operating real estate asset impairment;
· pursuit cost write-offs;
· gains and losses from early debt
extinguishment and preferred share redemptions;
· gains and losses from non-operating assets;
and
· other miscellaneous items.
Expected Normalized FFO per share is
calculated on a basis consistent with actual Normalized FFO per
share and is considered an appropriate supplemental measure of
expected operating performance when compared to expected EPS.
The Company believes that Normalized FFO and
Normalized FFO available to Common Shares and Units are helpful to
investors as supplemental measures of the operating performance of
a real estate company because they allow investors to compare the
Company's operating performance to its performance in prior
reporting periods and to the operating performance of other real
estate companies without the effect of items that by their nature
are not comparable from period to period and tend to obscure the
Company's actual operating results.
FFO, FFO available to Common Shares and
Units, Normalized FFO and Normalized FFO available to Common Shares
and Units do not represent net income, net income available to
Common Shares or net cash flows from operating activities in
accordance with GAAP. Therefore, FFO, FFO available to Common
Shares and Units, Normalized FFO and Normalized FFO available to
Common Shares and Units should not be exclusively considered as
alternatives to net income, net income available to Common Shares
or net cash flows from operating activities as determined by GAAP
or as a measure of liquidity. The Company's calculation of FFO, FFO
available to Common Shares and Units, Normalized FFO and Normalized
FFO available to Common Shares and Units may differ from other real
estate companies due to, among other items, variations in cost
capitalization policies for capital expenditures and, accordingly,
may not be comparable to such other real estate companies.
FFO available to Common Shares and Units and
Normalized FFO available to Common Shares and Units are calculated
on a basis consistent with net income available to Common Shares
and reflects adjustments to net income for preferred distributions
and premiums on redemption of preferred shares in accordance with
GAAP. The equity positions of various individuals and entities that
contributed their properties to ERP Operating Limited Partnership,
the Company’s operating partnership, in exchange for OP Units are
collectively referred to as the "Noncontrolling Interests –
Operating Partnership". Subject to certain restrictions, the
Noncontrolling Interests – Operating Partnership may exchange their
OP Units for Common Shares on a one-for-one basis.
Leasing Concessions – Reflects upfront discounts 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.
Net Operating Income (“NOI”) – NOI is the Company’s
primary financial measure for evaluating each of its apartment
properties. NOI is defined as rental income less direct property
operating expenses (including real estate taxes and insurance). The
Company believes that NOI is helpful to investors as a supplemental
measure of its operating performance because it is a direct measure
of the actual operating results of the Company's apartment
properties. NOI does not include an allocation of property
management expenses either in the current or comparable periods.
Rental income for all leases and operating expense for ground
leases (for both same store and non-same store properties) are
reflected on a straight-line basis in accordance with GAAP for the
current and comparable periods.
Non-Residential – Consists of revenues and expenses from
retail and public parking garage operations.
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.
Same Store Properties – For annual comparisons, primarily
includes all properties acquired or completed that are stabilized
prior to January 1, 2023, less properties subsequently sold.
Properties are included in Same Store when they are stabilized for
all of the current and comparable periods presented. Unless
otherwise noted, includes both Residential and Non-Residential
operations for these properties.
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version on businesswire.com: https://www.businesswire.com/news/home/20240528414680/en/
Marty McKenna (312) 928-1901
Equity Residential (NYSE:EQR)
過去 株価チャート
から 8 2024 まで 9 2024
Equity Residential (NYSE:EQR)
過去 株価チャート
から 9 2023 まで 9 2024