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Equity Residential Reports First Quarter 2026 ResultsApril 28, 2026 4:30 PM
Business Wire
San Francisco and New York Continue to Produce Strong Results
Equity Residential (NYSE: EQR) today reported results for the quarter ended March 31, 2026.
First Quarter 2026 Results
All per share results are reported as available to common shares/units on a diluted basis.
Quarter Ended March 31,
2026
2025
$ Change
% Change
Earnings Per Share (EPS)
$
0.24
$
0.67
$
(0.43
)
(64.2
%)
Funds from Operations (FFO) per share
$
0.89
$
0.94
$
(0.05
)
(5.3
%)
Normalized FFO (NFFO) per share
$
0.99
$
0.95
$
0.04
4.2
%
Recent Highlights
For the first quarter of 2026 compared to the first quarter of 2025, same store revenues increased 2.2%, same store expenses increased 3.7% and same store Net Operating Income (NOI) increased 1.4%. The Company's resident Turnover of 7.8% in the first quarter of 2026 was the lowest in its history.
First quarter 2026 Blended Rate growth demonstrated a 130 basis point sequential improvement from the fourth quarter of 2025 to 1.5%.
On a same store cash basis, Leasing Concessions in the first quarter of 2026 were down 21% versus the first quarter of 2025, reflecting continued improvement in leasing amidst declining supply in our markets.
Compared to the first quarter of 2025, Physical Occupancy improved 10 basis points and Bad Debt, Net improved 10 basis points in the first quarter of 2026, reflecting solid demand and customer standing.
As previously announced, during the first quarter of 2026, the Company repurchased and retired approximately 3.5 million of its common shares at a weighted average purchase price of $63.42 per share, for an aggregate purchased amount of approximately $219.4 million.
During the first quarter of 2026, the Company increased the annual dividend on its common shares to $2.81 per share, a 1.4% increase over the 2025 annualized dividend.
“We have gotten off to a solid start to 2026 and are well positioned entering the peak leasing season. Our substantial exposure to the well performing San Francisco and New York markets drove operating performance in the first quarter that exceeded our expectations. These two markets are characterized by strong demand from our target higher earning renter demographic for our well-located apartment homes and modest levels of new supply,” said Mark J. Parrell, Equity Residential's President and CEO. "With new apartment supply levels set to decline for the foreseeable future across all our markets, we are continuing to see concessions decline, which provides the setup for pricing power in the latter half of the year. Combine that with a resilient U.S. economy, lifestyle preferences and cost considerations that favor rental housing and a country that remains significantly underhoused, we expect revenue performance to improve more broadly across our portfolio as the job market accelerates.”
Results Per Share
The change in EPS for the quarter ended March 31, 2026 compared to the same period of 2025 is due primarily to lower property sale gains, the various adjustment items listed on page 24 of this release and the items described below.
The per share change in FFO for the quarter ended March 31, 2026 compared to the same period of 2025 is due primarily to the various adjustment items listed on page 24 of this release and the items described below.
The per share change in Normalized FFO is due primarily to:
Positive/(Negative) Impact
First Quarter 2026 vs.
First Quarter 2025
Residential same store NOI
$
0.02
Lease-Up NOI
0.01
2025 transaction activity impact on NOI, net
(0.01
)
Interest expense, net
(0.01
)
Other items (primarily corporate overhead and share repurchase impacts) (1)
0.03
Net
$
0.04
(1)
Corporate overhead includes property management and general administrative expenses.
The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 26 through 31 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 6, 28 and 29 of this release.
Same Store Results
The following table shows the total same store results for the periods presented (includes Residential and Non-Residential).
First Quarter 2026 vs.
First Quarter 2025
First Quarter 2026 vs.
Fourth Quarter 2025
Apartment Units
78,885
81,821
Physical Occupancy
96.5% vs. 96.4%
96.4% vs. 96.1%
Revenues
2.2%
0.5%
Expenses
3.7%
6.0%
NOI
1.4%
(2.1%)
The following table reflects the detail of the change in Same Store Residential Revenues, which is presented on a GAAP basis showing Leasing Concessions on a straight-line basis.
First Quarter 2026 vs.
First Quarter 2025
First Quarter 2026 vs.
Fourth Quarter 2025
% Change
% Change
Same Store Residential Revenues-
comparable period
Lease rates
1.7
%
0.1
%
Leasing Concessions
(0.2
%)
0.0
%
Vacancy gain (loss)
0.1
%
0.2
%
Bad Debt, Net
0.1
%
0.1
%
Other (1)
0.6
%
0.1
%
Same Store Residential Revenues-
current period
2.3
%
0.5
%
(1)
Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items.
See page 11 for detail and reconciliations of Same Store Residential Revenues on a GAAP basis to Same Store Residential Revenues with Leasing Concessions on a cash basis.
Residential Same Store Operating Statistics
The following table includes select operating metrics for Residential Same Store Properties (for 78,885 same store apartment units):
April 2026 (1)
Q1 2026
Q4 2025
Q1 2025
Physical Occupancy
96.3%
96.5%
96.2%
96.4%
Percentage of Residents Renewing by month/quarter
61.5%
61.6%
61.1%
61.5%
New Lease Change
(1.1%)
(2.8%)
(5.4%)
(2.6%)
Renewal Rate Achieved
5.3%
4.7%
4.4%
4.8%
Blended Rate
3.0%
1.5%
0.2%
1.5%
(1)
April 2026 results are preliminary as of April 28th.
Investments Activity
The Company did not acquire or sell any properties during the first quarter of 2026.
Capital Markets and Balance Sheet Activity
During the first quarter of 2026, the Company repurchased and retired approximately 3.5 million of its common shares at a weighted average purchase price of $63.42 per share, for an aggregate purchased amount of approximately $219.4 million. All common share repurchases were funded with excess disposition proceeds from 2025 sale activity.
Second Quarter 2026 Guidance
The Company has established guidance ranges for the second quarter of 2026 EPS, FFO per share and Normalized FFO per share as listed below:
Q2 2026
Guidance
EPS
$0.28 to $0.32
FFO per share
$0.97 to $1.01
Normalized FFO per share
$0.98 to $1.02
The difference between the first quarter of 2026 actual EPS of $0.24 and the second quarter of 2026 EPS guidance midpoint of $0.30 is due primarily to lower expected property sale gains, lower expected other expenses and the items described below.
The difference between the first quarter of 2026 actual FFO of $0.89 per share and the second quarter of 2026 FFO guidance midpoint of $0.99 per share is due primarily to lower expected other expenses and the items described below.
The difference between the first quarter of 2026 actual Normalized FFO of $0.99 per share and the second quarter of 2026 Normalized FFO guidance midpoint of $1.00 per share is due primarily to:
Expected
Positive/(Negative)
Impact
Second Quarter 2026 vs.
First Quarter 2026
Residential same store NOI
$
0.03
Interest expense, net
(0.01
)
Corporate overhead
(0.01
)
Net
$
0.01
About Equity Residential
Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, owns and manages 312 rental properties consisting of 85,211 apartment units in dynamic metro areas across the U.S. with a primary concentration in major coastal markets, diversified by a targeted presence in the high-growth metro areas of Atlanta, Dallas/Austin and Denver. 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 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.
A live web cast of the Company’s conference call discussing these results will take place tomorrow, Wednesday, April 29, 2026 at 10:00 a.m. CT. Please visit the Investor section of the Company’s website at www.equityapartments.com for the webcast link.
Equity Residential
Consolidated Statements of Operations
(Amounts in thousands except per share data)
(Unaudited)
Quarter Ended March 31,
2026
2025
REVENUES
Rental income
$
779,846
$
760,810
EXPENSES
Property and maintenance
149,656
143,973
Real estate taxes and insurance
117,026
111,752
Property management
35,141
35,816
General and administrative
16,865
18,255
Depreciation
247,496
256,746
Total expenses
566,184
566,542
Net gain (loss) on sales of real estate properties
(32
)
154,152
Interest and other income
2,238
1,692
Other expenses
(40,788
)
(4,156
)
Interest:
Expense incurred, net
(77,370
)
(72,114
)
Amortization of deferred financing costs
(2,145
)
(2,144
)
Income before income and other taxes, income (loss) from
investments in unconsolidated entities and net gain (loss)
on sales of land parcels
95,565
271,698
Income and other tax (expense) benefit
(422
)
(422
)
Income (loss) from investments in unconsolidated entities
(2,042
)
(6,411
)
Net gain (loss) on sales of land parcels
—
(67
)
Net income
93,101
264,798
Net (income) loss attributable to Noncontrolling Interests:
Operating Partnership
(1,953
)
(7,102
)
Partially Owned Properties
(1,069
)
(1,104
)
Net income attributable to controlling interests
90,079
256,592
Preferred distributions
(356
)
(356
)
Net income available to Common Shares
$
89,723
$
256,236
Earnings per share – basic:
Net income available to Common Shares
$
0.24
$
0.68
Weighted average Common Shares outstanding
375,643
379,208
Earnings per share – diluted:
Net income available to Common Shares
$
0.24
$
0.67
Weighted average Common Shares outstanding
385,108
391,179
Distributions declared per Common Share outstanding
$
0.7025
$
0.6925
Equity Residential
Consolidated Statements of Funds From Operations and Normalized Funds From Operations
(Amounts in thousands except per share and Unit data)
(Unaudited)
Quarter Ended March 31,
2026
2025
Net income
$
93,101
$
264,798
Net (income) loss attributable to Noncontrolling Interests – Partially
Owned Properties
(1,069
)
(1,104
)
Preferred distributions
(356
)
(356
)
Net income available to Common Shares and Units
91,676
263,338
Adjustments:
Depreciation
247,496
256,746
Depreciation – Non-real estate additions
(1,009
)
(950
)
Depreciation – Partially Owned Properties
(616
)
(478
)
Depreciation – Unconsolidated Properties
3,332
4,395
Net (gain) loss on sales of unconsolidated entities - operating
assets
—
36
Net (gain) loss on sales of real estate properties
32
(154,152
)
FFO available to Common Shares and Units
340,911
368,935
Adjustments (see note for additional detail):
Write-off of pursuit costs
954
1,321
Debt extinguishment and preferred share redemption (gains)
losses
—
97
Non-operating asset (gains) losses
416
438
Other miscellaneous items
38,811
1,727
Normalized FFO available to Common Shares and Units
$
381,092
$
372,518
FFO
$
341,267
$
369,291
Preferred distributions
(356
)
(356
)
FFO available to Common Shares and Units
$
340,911
$
368,935
FFO per share and Unit – basic
$
0.89
$
0.95
FFO per share and Unit – diluted
$
0.89
$
0.94
Normalized FFO
$
381,448
$
372,874
Preferred distributions
(356
)
(356
)
Normalized FFO available to Common Shares and Units
$
381,092
$
372,518
Normalized FFO per share and Unit – basic
$
0.99
$
0.96
Normalized FFO per share and Unit – diluted
$
0.99
$
0.95
Weighted average Common Shares and Units outstanding – basic
383,819
389,719
Weighted average Common Shares and Units outstanding – diluted
385,108
391,179
Note: See Adjustments from FFO to Normalized FFO for additional detail regarding the adjustments from FFO to Normalized FFO. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.
Equity Residential
Consolidated Balance Sheets
(Amounts in thousands except for share amounts)
(Unaudited)
March 31,
December 31,
2026
2025
ASSETS
Land
$
5,573,564
$
5,563,407
Depreciable property
24,828,057
24,705,540
Projects under development
85,966
100,561
Land held for development
57,919
86,341
Investment in real estate
30,545,506
30,455,849
Accumulated depreciation
(11,264,396
)
(11,016,900
)
Investment in real estate, net
19,281,110
19,438,949
Investments in unconsolidated entities1
325,566
325,939
Cash and cash equivalents
34,677
55,904
Restricted deposits
104,432
102,950
Right-of-use assets
452,318
454,916
Other assets
319,050
367,365
Total assets
$
20,517,153
$
20,746,023
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net
$
1,590,859
$
1,589,904
Notes, net
6,000,230
5,998,458
Line of credit and commercial paper
748,417
586,648
Accounts payable and accrued expenses
141,575
109,165
Accrued interest payable
52,479
73,860
Lease liabilities
303,813
304,575
Other liabilities
306,187
324,616
Security deposits
82,306
82,155
Distributions payable
269,392
267,508
Total liabilities
9,495,258
9,336,889
Commitments and contingencies
Redeemable Noncontrolling Interests – Operating Partnership
165,420
176,289
Equity:
Shareholders' equity:
Preferred Shares of beneficial interest, $0.01 par value;
100,000,000 shares authorized; 343,100 shares issued and
outstanding as of March 31, 2026 and December 31, 2025
17,155
17,155
Common Shares of beneficial interest, $0.01 par value;
1,000,000,000 shares authorized; 374,674,719 shares issued
and outstanding as of March 31, 2026 and 377,806,173
shares issued and outstanding as of December 31, 2025
3,747
3,778
Paid in capital
9,846,857
9,824,460
Retained earnings
800,704
1,193,931
Accumulated other comprehensive income (loss)
2,460
2,175
Total shareholders’ equity
10,670,923
11,041,499
Noncontrolling Interests:
Operating Partnership
187,137
192,135
Partially Owned Properties
(1,585
)
(789
)
Total Noncontrolling Interests
185,552
191,346
Total equity
10,856,475
11,232,845
Total liabilities and equity
$
20,517,153
$
20,746,023
1 Includes $260.9 million and $261.4 million in unconsolidated development and operating projects as of March 31, 2026 and December 31, 2025, respectively. See Partially Owned Properties and/or Development and Lease-Up Projects for additional detail on unconsolidated projects.
Equity Residential
Portfolio Summary
As of March 31, 2026
% of
Stabilized
Average
Apartment
Budgeted
Rental
Markets/Metro Areas
Properties
Units
NOI
Rate
Los Angeles
56
14,433
16.0
%
$
2,985
Orange County
12
3,718
4.9
%
3,040
San Diego
10
2,225
3.1
%
3,313
Subtotal – Southern California
78
20,376
24.0
%
3,031
San Francisco
41
11,569
16.4
%
3,558
Washington, D.C.
42
13,553
14.7
%
2,864
New York
34
8,685
14.4
%
4,864
Boston
25
6,907
10.7
%
3,719
Seattle
38
8,051
9.1
%
2,723
Atlanta
22
6,420
4.4
%
1,917
Denver
16
4,678
3.6
%
2,135
Dallas/Austin
16
4,972
2.7
%
1,886
Total
312
85,211
100.0
%
$
3,094
Properties
Apartment Units
Wholly Owned Properties
297
81,539
Partially Owned Properties – Consolidated
12
2,656
Partially Owned Properties – Unconsolidated
3
1,016
312
85,211
Note: Projects under development are not included in the Portfolio Summary until construction has been completed.
Equity Residential
Portfolio Rollforward Q1 2026
($ in thousands)
Properties
Apartment
Units
12/31/2025
312
85,190
Configuration Changes
—
21
3/31/2026
312
85,211
Equity Residential
First Quarter 2026 vs. First Quarter 2025
Same Store Results/Statistics Including 78,885 Same Store Apartment Units
(includes Residential and Non-Residential)
($ in thousands except for Average Rental Rate)
Results
Statistics
Description
Revenues
Expenses
NOI
Average
Rental
Rate
Physical
Occupancy
Turnover
Q1 2026
$
746,478
$
248,558
$
497,920
$
3,154
96.5
%
7.8
%
Q1 2025
$
730,628
$
239,621
$
491,007
$
3,086
96.4
%
7.9
%
Change
$
15,850
$
8,937
$
6,913
$
68
0.1
%
(0.1
%)
Change
2.2
%
3.7
%
1.4
%
2.2
%
First Quarter 2026 vs. Fourth Quarter 2025
Same Store Results/Statistics Including 81,821 Same Store Apartment Units
(includes Residential and Non-Residential)
($ in thousands except for Average Rental Rate)
Results
Statistics
Description
Revenues
Expenses
NOI
Average
Rental
Rate
Physical
Occupancy
Turnover
Q1 2026
$
763,082
$
254,689
$
508,393
$
3,113
96.4
%
7.8
%
Q4 2025
$
759,439
$
240,351
$
519,088
$
3,106
96.1
%
8.3
%
Change
$
3,643
$
14,338
$
(10,695
)
$
7
0.3
%
(0.5
%)
Change
0.5
%
6.0
%
(2.1
%)
0.2
%
Equity Residential
Same Store Residential Revenues – GAAP to Cash Basis (1)
($ in thousands)
First Quarter 2026 vs. First Quarter 2025
First Quarter 2026 vs. Fourth Quarter 2025
78,885 Same Store Apartment Units
81,821 Same Store Apartment Units
Q1 2026
Q1 2025
Q1 2026
Q4 2025
Same Store Residential Revenues (GAAP Basis)
$
719,667
$
703,612
$
736,271
$
732,488
Leasing Concessions amortized
6,946
5,681
7,459
7,291
Leasing Concessions granted
(5,443
)
(6,924
)
(5,975
)
(7,963
)
Same Store Residential Revenues with Leasing
Concessions on a cash basis
$
721,170
$
702,369
$
737,755
$
731,816
% change - GAAP revenue
2.3
%
0.5
%
% change - cash revenue
2.7
%
0.8
%
(1)
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.
Same Store Net Operating Income By Quarter
Including 78,885 Same Store Apartment Units
(includes Residential and Non-Residential)
($ in thousands)
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Q1 2025
Same store revenues
$
746,478
$
742,894
$
742,962
$
737,998
$
730,628
Same store expenses
248,558
234,570
239,401
233,991
239,621
Same store NOI
$
497,920
$
508,324
$
503,561
$
504,007
$
491,007
Equity Residential
First Quarter 2026 vs. First Quarter 2025
Same Store Residential Results/Statistics by Market
Increase (Decrease) from Prior Year's Quarter
Markets/Metro Areas
Apartment
Units
Q1 2026
% of
Actual
NOI
Q1 2026
Average
Rental
Rate
Q1 2026
Weighted
Average
Physical
Occupancy %
Q1 2026
Turnover
Revenues
Expenses
NOI
Average
Rental
Rate
Physical
Occupancy
Turnover
Los Angeles
13,836
16.5
%
$
2,984
95.7
%
8.6
%
0.7
%
4.5
%
(1.0
%)
0.7
%
0.0
%
(0.4
%)
Orange County
3,718
5.2
%
3,040
95.9
%
7.9
%
2.1
%
1.7
%
2.2
%
2.6
%
(0.4
%)
0.7
%
San Diego
2,225
3.4
%
3,313
96.0
%
8.8
%
1.3
%
2.5
%
1.0
%
1.7
%
(0.3
%)
0.1
%
Subtotal – Southern California
19,779
25.1
%
3,031
95.8
%
8.5
%
1.1
%
3.9
%
(0.1
%)
1.2
%
(0.1
%)
(0.1
%)
San Francisco
11,344
17.4
%
3,553
97.7
%
8.4
%
6.5
%
1.5
%
8.7
%
5.6
%
0.9
%
0.1
%
Washington, D.C.
12,928
14.9
%
2,879
96.3
%
6.2
%
1.7
%
4.7
%
0.2
%
2.8
%
(1.1
%)
0.1
%
New York
8,235
14.3
%
4,916
97.9
%
5.6
%
4.6
%
2.3
%
6.4
%
4.3
%
0.3
%
(0.7
%)
Boston
6,907
10.4
%
3,719
95.8
%
6.9
%
1.5
%
7.1
%
(0.9
%)
1.4
%
0.0
%
(0.2
%)
Seattle
8,050
9.2
%
2,723
96.1
%
9.0
%
2.0
%
5.7
%
0.4
%
2.4
%
(0.4
%)
0.3
%
Denver
3,972
3.4
%
2,140
96.8
%
9.0
%
(5.9
%)
2.6
%
(9.8
%)
(7.7
%)
1.7
%
(1.8
%)
Atlanta
4,126
3.1
%
1,946
96.2
%
8.7
%
(2.0
%)
6.3
%
(6.2
%)
(2.6
%)
0.6
%
0.4
%
Dallas/Austin
3,544
2.2
%
1,810
95.7
%
9.5
%
(1.3
%)
(3.6
%)
0.4
%
(2.0
%)
0.6
%
(0.6
%)
Total
78,885
100.0
%
$
3,154
96.5
%
7.8
%
2.3
%
3.5
%
1.7
%
2.2
%
0.1
%
(0.1
%)
Note: The above table reflects Residential same store results only. Residential operations account for more than 96.0% of total revenues for the quarter ended March 31, 2026.
Equity Residential
First Quarter 2026 vs. Fourth Quarter 2025
Same Store Residential Results/Statistics by Market
Increase (Decrease) from Prior Quarter
Markets/Metro Areas
Apartment
Units
Q1 2026
% of
Actual
NOI
Q1 2026
Average
Rental
Rate
Q1 2026
Weighted
Average
Physical
Occupancy %
Q1 2026
Turnover
Revenues
Expenses
NOI
Average
Rental
Rate
Physical
Occupancy
Turnover
Los Angeles
13,836
16.1
%
$
2,984
95.7
%
8.6
%
0.1
%
5.1
%
(2.3
%)
0.3
%
(0.2
%)
(0.3
%)
Orange County
3,718
5.1
%
3,040
95.9
%
7.9
%
0.2
%
3.3
%
(0.6
%)
1.0
%
(0.6
%)
(0.1
%)
San Diego
2,225
3.4
%
3,313
96.0
%
8.8
%
(0.1
%)
2.2
%
(0.7
%)
(0.1
%)
0.0
%
(2.0
%)
Subtotal – Southern California
19,779
24.6
%
3,031
95.8
%
8.5
%
0.1
%
4.6
%
(1.7
%)
0.4
%
(0.2
%)
(0.5
%)
San Francisco
11,344
17.0
%
3,553
97.7
%
8.4
%
2.2
%
5.2
%
1.0
%
1.4
%
0.8
%
(0.9
%)
Washington, D.C.
12,928
14.6
%
2,879
96.3
%
6.2
%
0.2
%
9.9
%
(4.1
%)
0.1
%
0.0
%
(1.0
%)
New York
8,235
14.0
%
4,916
97.9
%
5.6
%
1.1
%
3.5
%
(0.6
%)
0.8
%
0.3
%
(0.2
%)
Boston
6,907
10.1
%
3,719
95.8
%
6.9
%
(0.1
%)
11.5
%
(4.8
%)
0.1
%
(0.2
%)
0.4
%
Seattle
8,050
9.1
%
2,723
96.1
%
9.0
%
(0.3
%)
8.2
%
(3.5
%)
(0.1
%)
(0.2
%)
1.1
%
Atlanta
6,190
4.5
%
1,922
96.0
%
8.3
%
0.8
%
4.8
%
(1.3
%)
(0.9
%)
1.5
%
(0.9
%)
Denver
4,469
3.7
%
2,143
96.8
%
9.1
%
(1.5
%)
0.4
%
(2.4
%)
(2.8
%)
1.3
%
(1.7
%)
Dallas/Austin
3,919
2.4
%
1,853
95.3
%
9.8
%
0.0
%
2.0
%
(1.4
%)
(0.9
%)
0.8
%
(1.3
%)
Total
81,821
100.0
%
$
3,113
96.4
%
7.8
%
0.5
%
5.8
%
(2.0
%)
0.2
%
0.3
%
(0.5
%)
Note: The above table reflects Residential same store results only. Residential operations account for more than 96.0% of total revenues for the quarter ended March 31, 2026.
Equity Residential
First Quarter 2026 vs. First Quarter 2025
Total Same Store Operating Expenses Including 78,885 Same Store Apartment Units
(includes Residential and Non-Residential)
($ in thousands)
Q1 2026
Q1 2025
$
Change (1)
%
Change
% of
Q1 2026
Operating
Expenses
Real estate taxes
$
98,680
$
95,910
$
2,770
2.9
%
39.7
%
On-site payroll
44,593
44,517
76
0.2
%
17.9
%
Utilities
42,813
40,120
2,693
6.7
%
17.2
%
Repairs and maintenance
32,435
30,243
2,192
7.2
%
13.1
%
Insurance
9,994
9,568
426
4.5
%
4.0
%
Leasing and advertising
3,534
2,924
610
20.8
%
1.4
%
Other on-site operating expenses
16,509
16,339
170
1.0
%
6.7
%
Total Same Store Operating Expenses (2)
$
248,558
$
239,621
$
8,937
3.7
%
100.0
%
(1)
The quarter-over-quarter changes were primarily driven by the following factors:
Real estate taxes – Increase due to escalation in rates and assessed values.
On-site payroll – Sub-inflationary growth due to the impact of various innovation initiatives and lower employee benefit costs.
Utilities – Increase primarily driven by higher commodity prices, particularly impacting electricity and gas.
Repairs and maintenance – Increase primarily driven by costs associated with the implementation of various resident technology initiatives (including bulk Wi-Fi programs), which is more than offset by a corresponding increase in same store revenues.
Insurance – Increase primarily driven by higher general liability premiums and property casualty losses, partially offset by lower property premiums.
Leasing and advertising – Increase primarily driven by higher interactive marketing/advertising costs and certain one-time broker fee costs related to Non-Residential leasing activity.
Other on-site operating expenses – Increase primarily due to higher association fees and other expenses.
(2)
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
Equity Residential
Debt Summary as of March 31, 2026
($ in thousands)
Debt
Balances (1)
% of Total
Weighted
Average
Rates (1)
Weighted
Average
Maturities
(years)
Secured
$
1,590,859
19.1
%
3.68
%
5.7
Unsecured
6,748,647
80.9
%
3.80
%
6.5
Total
$
8,339,506
100.0
%
3.78
%
6.3
Fixed Rate Debt:
Secured – Conventional
$
1,404,284
16.9
%
3.86
%
5.2
Unsecured – Public
6,000,230
71.9
%
3.79
%
7.3
Fixed Rate Debt
7,404,514
88.8
%
3.80
%
6.9
Floating Rate Debt:
Secured – Tax Exempt
186,575
2.2
%
2.32
%
9.2
Unsecured – Revolving Credit Facility
—
—
4.40
%
4.7
Unsecured – Commercial Paper Program (2)
748,417
9.0
%
3.91
%
—
Floating Rate Debt
934,992
11.2
%
3.56
%
1.9
Total
$
8,339,506
100.0
%
3.78
%
6.3
(1)
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
(2)
At March 31, 2026, the weighted average maturity of commercial paper outstanding was 14 days. The weighted average amount outstanding for the quarter ended March 31, 2026 was approximately $683.4 million.
Note: The Company capitalized interest of approximately $2.6 million and $3.9 million during the quarters ended March 31, 2026 and 2025, respectively.
Equity Residential
Debt Maturity Schedule as of March 31, 2026
($ in thousands)
Year
Fixed
Rate
Floating
Rate
Total
% of Total
Weighted
Average Coupons
on Fixed
Rate Debt (1)
Weighted
Average
Coupons on
Total Debt (1)
2026
$
592,025
$
756,920
(2)
$
1,348,945
16.1
%
3.58
%
3.87
%
2027
400,000
8,200
408,200
4.9
%
3.25
%
3.23
%
2028
900,000
9,000
909,000
10.8
%
3.79
%
3.78
%
2029
888,120
9,700
897,820
10.7
%
3.30
%
3.30
%
2030
1,148,462
10,800
1,159,262
13.8
%
2.53
%
2.53
%
2031
528,500
37,700
566,200
6.7
%
1.94
%
1.97
%
2032
500,000
26,100
526,100
6.3
%
4.95
%
4.84
%
2033
550,000
—
550,000
6.5
%
5.22
%
5.22
%
2034
600,000
—
600,000
7.1
%
4.65
%
4.65
%
2035
—
25,175
25,175
0.3
%
—
1.65
%
2036+
1,350,850
61,785
1,412,635
16.8
%
4.39
%
4.26
%
Subtotal
7,457,957
945,380
8,403,337
100.0
%
3.72
%
3.72
%
Deferred Financing Costs and Unamortized (Discount)
(53,443
)
(10,388
)
(63,831
)
N/A
N/A
N/A
Total
$
7,404,514
$
934,992
$
8,339,506
100.0
%
3.72
%
3.72
%
(1)
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
(2)
Includes $749.5 million in principal outstanding on the Company's Commercial Paper Program.
Equity Residential
Selected Unsecured Public Debt Covenants
March 31,
December 31,
2026
2025
Debt to Adjusted Total Assets (not to exceed 60%)
27.9%
27.4%
Secured Debt to Adjusted Total Assets (not to exceed 40%)
6.1%
6.1%
Consolidated Income Available for Debt Service to
Maximum Annual Service Charges
(must be at least 1.5 to 1)
5.60
5.77
Total Unencumbered Assets to Unsecured Debt
(must be at least 125%)
466.1%
477.1%
Note: These selected covenants represent the most restrictive financial covenants relating to ERP Operating Limited Partnership's ("ERPOP") outstanding public debt securities. Equity Residential is the general partner of ERPOP.
Selected Credit Ratios
March 31,
December 31,
2026
2025
Total debt to Normalized EBITDAre
4.38x
4.32x
Net debt to Normalized EBITDAre
4.35x
4.27x
Unencumbered NOI as a % of total NOI
90.1%
90.3%
Note: See Normalized EBITDAre Reconciliations for detail.
Equity Residential
Capital Structure as of March 31, 2026
(Amounts in thousands except for share/unit and per share amounts)
Secured Debt
$
1,590,859
19.1
%
Unsecured Debt
6,748,647
80.9
%
Total Debt
8,339,506
100.0
%
26.8
%
Common Shares (includes Restricted Shares)
374,674,719
97.6
%
Units (includes OP Units and Restricted Units)
9,325,548
2.4
%
Total Shares and Units
384,000,267
100.0
%
Common Share Price at March 31, 2026
$
59.15
22,713,616
99.9
%
Perpetual Preferred Equity (see below)
17,155
0.1
%
Total Equity
22,730,771
100.0
%
73.2
%
Total Market Capitalization
$
31,070,277
100.0
%
Perpetual Preferred Equity as of March 31, 2026
(Amounts in thousands except for share and per share amounts)
Series
Call Date
Outstanding
Shares
Liquidation
Value
Annual
Dividend
Per Share
Annual
Dividend
Amount
Preferred Shares:
8.29% Series K
12/10/26
343,100
$
17,155
$
4.145
$
1,422
Equity Residential
Common Share and Unit
Weighted Average Amounts Outstanding
Q1 2026
Q1 2025
Weighted Average Amounts Outstanding for Net Income Purposes:
Common Shares - basic
375,642,927
379,207,994
Shares issuable from assumed conversion/vesting of:
- OP Units
8,175,672
10,511,169
- long-term compensation shares/units
1,288,946
1,460,268
Total Common Shares and Units - diluted
385,107,545
391,179,431
Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes:
Common Shares - basic
375,642,927
379,207,994
OP Units - basic
8,175,672
10,511,169
Total Common Shares and OP Units - basic
383,818,599
389,719,163
Shares issuable from assumed conversion/vesting of:
- long-term compensation shares/units
1,288,946
1,460,268
Total Common Shares and Units - diluted
385,107,545
391,179,431
Period Ending Amounts Outstanding:
Common Shares (includes Restricted Shares)
374,674,719
379,840,678
Units (includes OP Units and Restricted Units)
9,325,548
11,723,272
Total Shares and Units
384,000,267
391,563,950
Equity Residential
Partially Owned Properties as of March 31, 2026
(Amounts in thousands except for project/property and apartment unit amounts)
Partially Owned Properties
Weighted
Average
Ownership
Percentage
Total
Properties
Total
Apartment
Units
Q1 2026
NOI
Q1 2026
Interest
Expense
Total Debt
CONSOLIDATED:
Projects Under Development (1) (3)
95.0%
—
—
$
523
$
—
$
—
Operating properties (stabilized)
86.0%
12
2,656
16,406
255
28,344
Total Partially Owned Properties - Consolidated
12
2,656
16,929
255
28,344
UNCONSOLIDATED:
Projects Under Development (2) (3)
95.0%
—
—
77
206
99,301
Operating properties (stabilized)
72.2%
3
1,016
5,460
2,520
212,499
Total Partially Owned Properties - Unconsolidated
3
1,016
5,537
2,726
311,800
Total Partially Owned Properties
15
3,672
$
22,466
$
2,981
$
340,144
(1)
The Company is currently developing one property, which is expected to add 440 apartment units upon completion.
(2)
The Company is currently developing two properties, which are expected to add 639 apartment units upon completion.
(3)
See Development and Lease-Up Projects for more information.
Note: Partially owned consolidated and unconsolidated amounts are presented at 100% of the project/property. This schedule only includes those projects/properties that are partially owned at March 31, 2026.
Equity Residential
Development and Lease-Up Projects as of March 31, 2026
(Amounts in thousands except for project and apartment unit amounts)
Estimated/Actual
Projects
Location
Ownership
Percentage
No. of
Apartment
Units
Total
Budgeted Capital
Cost
Total
Book Value
to Date
Total
Debt (1)
Percentage
Completed
Start
Date
Initial
Occupancy
Completion
Date
Stabilization
Date
Percentage
Leased / Occupied
CONSOLIDATED:
Projects Under Development:
The Basin
Wakefield, MA
95%
440
$
232,172
$
211,966
$
—
96%
Q1 2024
Q3 2025
Q2 2026
Q2 2027
43% / 35%
173 Reservoir
Canton, GA
100%
240
60,812
15,238
—
10%
Q1 2026
Q3 2027
Q1 2028
Q4 2028
– / –
Continuum
Alpharetta, GA
100%
280
113,649
29,298
—
8%
Q1 2026
Q3 2027
Q2 2028
Q4 2028
– / –
Projects Under Development - Consolidated
960
406,633
256,502
—
Projects Completed and Stabilized During the Quarter:
Lorien (fka Laguna Clara II)
Santa Clara, CA
100%
225
149,521
149,338
—
100%
Q2 2022
Q1 2025
Q1 2025
Q1 2026
99% / 98%
Projects Completed and Stabilized During the Quarter - Consolidated
225
149,521
149,338
—
UNCONSOLIDATED:
Projects Under Development:
Modera Bridle Trails
Kirkland, WA
95%
369
185,282
145,787
52,996
83%
Q3 2024
Q3 2026
Q3 2026
Q1 2028
– / –
Modera South Shore
Marshfield, MA
95%
270
121,918
104,518
46,305
89%
Q3 2024
Q3 2025
Q4 2026
Q2 2027
36% / 28%
Projects Under Development - Unconsolidated
639
307,200
250,305
99,301
Total Development Projects - Consolidated
1,185
556,154
405,840
—
Total Development Projects - Unconsolidated
639
307,200
250,305
99,301
Total Development Projects
1,824
$
863,354
$
656,145
$
99,301
NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS
Total Budgeted
Capital Cost
Q1 2026
NOI
Projects Under Development - Consolidated
$
406,633
$
523
Projects Completed and Stabilized During the Quarter - Consolidated
149,521
1,705
Projects Under Development - Unconsolidated
307,200
77
$
863,354
$
2,305
(1)
All unconsolidated projects are being partially funded with third party, project-specific construction loans, none of which are recourse to the Company.
Equity Residential
Residential Capital Expenditures to Real Estate
For the Quarter Ended March 31, 2026
(Amounts in thousands except for apartment unit and per apartment unit amounts)
Same Store
Properties
Non-Same Store
Properties
Total Consolidated
Properties
Same Store Avg.
Per Apartment Unit
Total Consolidated Apartment Units
78,885
5,310
84,195
Recurring Capital Expenditures
$
32,068
$
3,512
$
35,580
$
407
NOI-Enhancing Expenditures:
Renovation Expenditures
15,229
(1)
1,575
(3)
16,804
193
Other (2)
4,967
1,271
6,238
63
Total NOI-Enhancing Expenditures
20,196
2,846
23,042
256
Total Capital Expenditures to Real Estate (4)
$
52,264
$
6,358
$
58,622
$
663
(1)
Renovation Expenditures on 533 same store apartment units for the quarter ended March 31, 2026 approximated $29,000 per apartment unit renovated.
(2)
Includes sustainability, property-level technology and Accessory Dwelling Units (ADU) spend.
(3)
Includes expenditures for one property that has been removed from same store while undergoing major renovations requiring a significant number of apartment units to be vacated to accommodate the extensive planned improvements. The renovation is expected to continue through the fourth quarter of 2026 and is being paid for, in part, by funds from a replacement reserve account required by the ground lease arrangement.
(4)
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
Note: Non-Residential Capital Expenditures to Real Estate were approximately $3.4 million for both Same Store Properties and Total Consolidated Properties.
Equity Residential
Normalized EBITDAre Reconciliations
(Amounts in thousands)
Trailing Twelve Months
2026
2025
March 31, 2026
December 31, 2025
Q1
Q4
Q3
Q2
Q1
Net income
$
980,252
$
1,151,949
$
93,101
$
391,498
$
296,868
$
198,785
$
264,798
Interest expense incurred, net
312,054
306,798
77,370
79,226
80,141
75,317
72,114
Amortization of deferred financing costs
8,769
8,768
2,145
2,399
2,122
2,103
2,144
Amortization of above/below market lease intangibles
4,610
4,610
1,152
1,152
1,153
1,153
1,152
Depreciation
1,001,150
1,010,400
247,496
258,108
254,657
240,889
256,746
Income and other tax expense (benefit)
1,585
1,585
422
361
395
407
422
EBITDA
2,308,420
2,484,110
421,686
732,744
635,336
518,654
597,376
Net (gain) loss on sales of real estate properties
(472,204
)
(626,388
)
32
(271,271
)
(142,685
)
(58,280
)
(154,152
)
Net (gain) loss on sales of unconsolidated entities - operating assets
(2,817
)
(2,781
)
—
(2,643
)
—
(174
)
36
EBITDAre
1,833,399
1,854,941
421,718
458,830
492,651
460,200
443,260
Write-off of pursuit costs (other expenses)
7,368
7,735
954
1,613
4,074
727
1,321
(Income) loss from investments in unconsolidated entities - operations
16,723
21,089
2,009
5,563
3,981
5,170
6,375
Net (gain) loss on sales of unconsolidated entities - non-operating assets
640
607
33
607
—
—
—
Net (gain) loss on sales of land parcels
13
80
—
—
2
11
67
Realized (gain) loss on investment securities (interest and other income)
11
51
—
—
2
9
40
Unrealized (gain) loss on investment securities (interest and other income)
(25,399
)
(25,399
)
—
—
(25,399
)
—
—
Insurance/litigation settlement or reserve income (interest and other income)
(382
)
(199
)
(281
)
—
—
(101
)
(98
)
Insurance/litigation/environmental settlement or reserve expense (other expenses) (1)
83,583
48,668
36,627
17,950
25,857
3,149
1,712
Advocacy contributions (other expenses)
3,197
966
2,444
360
208
185
213
Employment tax refund (interest and other income)
(16,867
)
(16,867
)
—
—
(16,867
)
—
—
Other
52
(69
)
21
—
20
11
(100
)
Normalized EBITDAre
$
1,902,338
$
1,891,603
$
463,525
$
484,923
$
484,529
$
469,361
$
452,790
Balance Sheet Items:
March 31, 2026
December 31, 2025
Total debt
$
8,339,506
$
8,175,010
Cash and cash equivalents
(34,677
)
(55,904
)
Mortgage principal reserves/sinking funds
(35,593
)
(33,143
)
Net debt
$
8,269,236
$
8,085,963
(1)
Insurance/litigation/environmental settlement or reserve expense includes reserves relating to various legal proceedings being defended by the Company.
Note: EBITDA, EBITDAre and Normalized EBITDAre do not include any adjustments for the Company’s share of partially owned unconsolidated entities due to the immaterial size of the Company’s partially owned unconsolidated portfolio.
Equity Residential
Adjustments from FFO to Normalized FFO
(Amounts in thousands)
Quarter Ended March 31,
2026
2025
Variance
Impairment – non-operating real estate assets
$
—
$
—
$
—
Write-off of pursuit costs (other expenses)
954
1,321
(367
)
Write-off of unamortized deferred financing costs (interest expense)
—
97
(97
)
Debt extinguishment and preferred share redemption (gains) losses
—
97
(97
)
Net (gain) loss on sales of land parcels
—
67
(67
)
(Income) loss from investments in unconsolidated entities - non-operating assets
416
331
85
Realized (gain) loss on investment securities (interest and other income)
—
40
(40
)
Non-operating asset (gains) losses
416
438
(22
)
Insurance/litigation settlement or reserve income (interest and other income)
(281
)
(98
)
(183
)
Insurance/litigation/environmental settlement or reserve expense (other expenses) (1)
36,627
1,712
34,915
Advocacy contributions (other expenses)
2,444
213
2,231
Other
21
(100
)
121
Other miscellaneous items
38,811
1,727
37,084
Adjustments from FFO to Normalized FFO
$
40,181
$
3,583
$
36,598
(1)
Insurance/litigation/environmental settlement or reserve expense includes reserves relating to various legal proceedings being defended by the Company.
Note: See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.
Equity Residential
Normalized FFO Guidance and Assumptions
The guidance/projections provided below are based on current expectations and are forward-looking. All guidance is given on a Normalized FFO basis. Therefore, certain items excluded from Normalized FFO, such as debt extinguishment costs/prepayment penalties and the write-off of pursuit costs, are not included in the estimates provided on this page. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.
Q2 2026
Revised Full Year 2026
Previous Full Year 2026
2026 Normalized FFO Guidance (per share diluted)
Expected Normalized FFO Per Share
$0.98 to $1.02
$4.02 to $4.14
$4.02 to $4.14
2026 Same Store Assumptions (includes Residential and Non-Residential)
Physical Occupancy
96.4%
96.4%
Revenue change
1.2% to 3.2%
1.2% to 3.2%
Expense change
3.0% to 4.0%
3.0% to 4.0%
NOI change (1)
0.5% to 2.5%
0.5% to 2.5%
2026 Transaction Assumptions
Consolidated rental acquisitions
N/A
N/A
Consolidated rental dispositions
$165.0M
N/A
2026 Debt Assumptions
Weighted average debt outstanding
$8.28B to $8.48B
$8.33B to $8.53B
Interest expense, net (on a Normalized FFO basis)
$318.0M to $324.0M
$321.0M to $327.0M
Capitalized interest
$6.3M to $8.3M
$6.3M to $8.3M
2026 Capital Expenditures to Real Estate Assumptions for Residential Same Store Properties
NOI-Enhancing Capital Expenditures for Residential Same Store Properties (2)
$125.0M
$125.0M
Recurring Capital Expenditures for Residential Same Store Properties
$185.0M
$185.0M
Capital Expenditures to Real Estate for Residential Same Store Properties
$310.0M
$310.0M
2026 Other Guidance Assumptions
Property management expense
$142.0M to $144.0M
$142.0M to $144.0M
General and administrative expense
$59.0M to $64.0M
$59.0M to $64.0M
Income (loss) from investments in unconsolidated entities (on a Normalized FFO basis) (3)
$1.0M to $5.0M
$1.0M to $5.0M
Debt offerings
$500.0M to $1.0B
$500.0M to $1.0B
Weighted average Common Shares and Units - Diluted
384.2M
384.2M
(1)
Approximately 20 basis point change in NOI percentage = $0.01 per share change in EPS/FFO per share/Normalized FFO per share.
(2)
During 2026, the Company expects to spend approximately $90.0 million for apartment unit Renovation Expenditures on approximately 2,900 Residential same store apartment units at an average cost of approximately $31,000 per apartment unit renovated. The remainder of the NOI-Enhancing spend includes other items, such as sustainability, property-level technology and ADU expenditures.
(3)
Income (loss) from investments in unconsolidated entities (on a Normalized FFO basis) primarily consists of our share of both Lease-Up NOI and interest expense, net that is no longer being capitalized from the recently completed unconsolidated development projects referenced on pages 20 and 21.
Equity Residential
Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms
(Amounts in thousands except per share and per apartment unit data)
(All per share data is diluted)
This Earnings Release and Supplemental Financial Information includes certain non-GAAP financial measures and other terms that management believes are helpful in understanding our business. The definitions and calculations of these non-GAAP financial measures and other terms may differ from the definitions and methodologies used by other real estate investment trusts (“REIT”) and, accordingly, may not be comparable. These non-GAAP financial measures should not be considered as an alternative to net earnings or any other measurement of performance computed in accordance with accounting principles generally accepted in the United States (“GAAP”) or as an alternative to cash flows from specific operating, investing or financing activities. Furthermore, these non-GAAP financial measures are not intended to be a measure of cash flow or liquidity.
Acquisition Capitalization Rate or Cap Rate – NOI that the Company anticipates receiving in the next 12 months (or the year two or three stabilized NOI for properties that are in lease-up at acquisition) less an estimate of property management costs/management fees allocated to the project (generally ranging from 3.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $100-$450 per apartment unit depending on the age and condition of the asset) divided by the gross purchase price of the asset. The weighted average Acquisition Cap Rate for acquired properties is weighted based on the projected NOI streams and the relative purchase price for each respective property.
Average Rental Rate – Total Residential rental revenues reflected on a straight-line basis in accordance with GAAP divided by the weighted average occupied apartment units for the reporting period presented.
Bad Debt, Net – Change in rental income due to bad debt write-offs and reserves, net of amounts collected on previously written-off or reserved accounts.
Blended Rate – The weighted average of New Lease Change and Renewal Rate Achieved.
Capital Expenditures to Real Estate:
Accessory Dwelling Units (ADU) – Includes costs to convert existing underutilized spaces of our properties into new apartment units.
NOI-Enhancing – Primarily includes Renovation Expenditures as well as sustainability, property-level technology and ADU expenditures that are intended to increase revenues or decrease expenses.
Recurring – Capital expenditures necessary to help preserve the value of and maintain the functionality of our apartment properties.
Renovation Expenditures – Apartment unit renovation costs (primarily kitchens and baths) designed to reposition these units for higher rental levels in their respective markets.
Debt Balances:
Commercial Paper Program – The Company may borrow up to a maximum of $1.5 billion under its Commercial Paper Program subject to market conditions. The notes bear interest at various floating rates.
Revolving Credit Facility – The Company’s $2.5 billion unsecured revolving credit facility matures December 3, 2030. The interest rate on advances under the facility will generally be SOFR plus a spread (currently 0.725%), or based on bids received from the lending group, and an annual facility fee (currently 0.125%). Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating. In addition, the Company limits its utilization of the facility in order to maintain liquidity to support its $1.5 billion Commercial Paper Program along with certain other obligations. The following table presents the availability on the Company’s unsecured revolving credit facility:
March 31, 2026
Unsecured revolving credit facility commitment
$
2,500,000
Commercial paper balance outstanding
(749,520
)
Unsecured revolving credit facility balance outstanding
—
Other restricted amounts
(3,464
)
Unsecured revolving credit facility availability
$
1,747,016
Debt Covenant Compliance – Our unsecured debt includes certain financial and operating covenants including, among other things, maintenance of certain financial ratios. These provisions are contained in the indentures applicable to each notes payable or the credit agreement for our line of credit. The Debt Covenant Compliance ratios that are provided show the Company's compliance with certain covenants governing our public unsecured debt. These covenants generally reflect our most restrictive financial covenants. The Company was in compliance with its unsecured debt covenants for all periods presented.
Development Yield – NOI that the Company anticipates receiving in the next 12 months following stabilization less an estimate of property management costs/management fees allocated to the project (generally ranging from 3.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $50-$150 per apartment unit depending on the type of asset) divided by the Total Budgeted Capital Cost of the asset. The weighted average Development Yield for development properties is weighted based on the projected NOI streams and the relative Total Budgeted Capital Cost for each respective property.
Disposition Yield – NOI that the Company anticipates giving up in the next 12 months less an estimate of property management costs/management fees allocated to the project (generally ranging from 3.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $250-$600 per apartment unit depending on the age and condition of the asset) divided by the gross sales price of the asset. The weighted average Disposition Yield for sold properties is weighted based on the projected NOI streams and the relative sales price for each respective property.
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.
EBITDA for Real Estate and Normalized EBITDA for Real Estate:
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”) – The National Association of Real Estate Investment Trusts (“Nareit”) defines EBITDAre (September 2017 White Paper) as net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for gains and losses from sales of depreciated operating properties, impairment write-downs of depreciated operating properties, impairment write-downs of investments in unconsolidated entities caused by a decrease in value of depreciated operating properties within the joint venture and adjustments to reflect the Company’s share of EBITDAre of investments in unconsolidated entities.
The Company believes that EBITDAre is useful to investors, creditors and rating agencies as a supplemental measure of the Company’s ability to incur and service debt because it is a recognized measure of performance by the real estate industry, and by excluding gains or losses related to sales or impairment of depreciated operating properties, EBITDAre can help compare the Company’s credit strength between periods or as compared to different companies.
Normalized Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“Normalized EBITDAre”) – Represents net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for non-comparable items. Normalized EBITDAre, total debt to Normalized EBITDAre and net debt to Normalized EBITDAre are important metrics in evaluating the credit strength of the Company and its ability to service its debt obligations. The Company believes that Normalized EBITDAre, total debt to Normalized EBITDAre, and net debt to Normalized EBITDAre are useful to investors, creditors and rating agencies because they allow investors to compare the Company’s credit strength to prior reporting periods and to other 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 credit quality.
Economic Gain (Loss) – Economic Gain (Loss) is calculated as the net gain (loss) on sales of real estate properties in accordance with GAAP, excluding accumulated depreciation. The Company generally considers Economic Gain (Loss) to be an appropriate supplemental measure to net gain (loss) on sales of real estate properties in accordance with GAAP because it is one indication of the gross value created by the Company's acquisition, development, renovation, management and ultimate sale of a property and because it helps investors to understand the relationship between the cash proceeds from a sale and the cash invested in the sold property. The following table presents a reconciliation of net gain (loss) on sales of real estate properties in accordance with GAAP to Economic Gain (Loss):
Quarter Ended March 31, 2026
Net Gain (Loss) on Sales of Real Estate Properties
$
(32
)
Accumulated Depreciation Gain
—
Economic Gain (Loss)
$
(32
)
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 the 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.
The following table presents reconciliations of EPS to FFO per share and Normalized FFO per share for Consolidated Statements of Funds From Operations and Normalized Funds From Operations.
Actual
Actual
Expected
Expected
Q1 2026
Q1 2025
Q2 2026
2026
Per Share
Per Share
Per Share
Per Share
EPS – Diluted
$
0.24
$
0.67
$0.28 to $0.32
$1.28 to $1.40
Depreciation expense
0.65
0.66
0.64
2.56
Net (gain) loss on sales
—
(0.39
)
0.05
0.05
Impairment – operating real estate assets
—
—
—
—
FFO per share – Diluted
0.89
0.94
0.97 to 1.01
3.89 to 4.01
Adjustments (1):
Impairment – non-operating real estate
assets
—
—
—
—
Write-off of pursuit costs
—
—
—
0.01
Debt extinguishment and preferred
share redemption (gains) losses
—
—
—
—
Non-operating asset (gains) losses
—
—
—
—
Other miscellaneous items
0.10
0.01
0.01
0.12
Normalized FFO per share – Diluted
$
0.99
$
0.95
$0.98 to $1.02
$4.02 to $4.14
(1)
See Adjustments from FFO to Normalized FFO for additional detail.
Lease-Up NOI – Represents NOI for development properties: (i) in various stages of lease-up; and (ii) where lease-up has been completed but the properties were not stabilized (defined as having achieved 90% Physical Occupancy for three consecutive months) for all of the current and comparable periods presented.
Leasing Concessions – Reflects upfront discounts on both new move-in and renewal leases on a straight-line basis.
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.
The following tables present reconciliations of net income per the consolidated statements of operations to NOI, along with rental income, operating expenses and NOI per the consolidated statements of operations allocated between same store and non-same store/other results and further allocated between Residential same store and Non-Residential same store results (see Same Store Results):
Quarter Ended March 31,
2026
2025
Net income
$
93,101
$
264,798
Adjustments:
Property management
35,141
35,816
General and administrative
16,865
18,255
Depreciation
247,496
256,746
Net (gain) loss on sales of real estate
properties
32
(154,152
)
Interest and other income
(2,238
)
(1,692
)
Other expenses
40,788
4,156
Interest:
Expense incurred, net
77,370
72,114
Amortization of deferred financing costs
2,145
2,144
Income and other tax expense (benefit)
422
422
(Income) loss from investments in unconsolidated
entities
2,042
6,411
Net (gain) loss on sales of land parcels
—
67
Total NOI
$
513,164
$
505,085
Quarter Ended March 31,
Rental income:
2026
2025
Residential same store
$
719,667
$
703,612
Non-Residential same store
26,811
27,016
Total same store
746,478
730,628
Non-same store/other
33,368
30,182
Total rental income
779,846
760,810
Operating expenses:
Residential same store
240,114
231,903
Non-Residential same store
8,444
7,718
Total same store
248,558
239,621
Non-same store/other
18,124
16,104
Total operating expenses
266,682
255,725
NOI:
Residential same store
479,553
471,709
Non-Residential same store
18,367
19,298
Total same store
497,920
491,007
Non-same store/other
15,244
14,078
Total NOI
$
513,164
$
505,085
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.
Non-Residential – Consists of revenues and expenses from retail and public parking garage operations.
Non-Same Store Properties – For annual comparisons, primarily includes all properties acquired during 2025 and 2026, plus any properties in lease-up and not stabilized as of January 1, 2025. Unless otherwise noted, includes both Residential and Non-Residential operations for these properties.
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.
Pricing Trend – Weighted average of 12-month base rent including amenity amount less Leasing Concessions on 12-month signed leases 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 Operating Expenses:
Insurance – Includes third-party insurance premiums, broker fees and other insurance-related procurement fees along with an allocation of estimated uninsured losses.
On-site Payroll – Includes payroll and related expenses for on-site personnel including property managers, leasing consultants and maintenance staff.
Other On-site Operating Expenses – Includes ground lease costs and administrative costs such as office supplies, telephone and data charges and association and business licensing fees.
Repairs and Maintenance – Includes general maintenance costs, apartment unit turnover costs including interior painting, routine landscaping, security, exterminating, fire protection, snow removal, elevator, roof and parking lot repairs and other miscellaneous building repair and maintenance costs.
Utilities – Represents gross expenses prior to any recoveries under the Resident Utility Billing System (“RUBS”). Recoveries are reflected in rental income.
Same Store Properties – For annual comparisons, primarily includes all properties acquired or completed that are stabilized prior to January 1, 2025, 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.
Same Store Residential Revenues – Revenues from our Residential Same Store Properties only presented on a GAAP basis which reflects the impact of Leasing Concessions on a straight-line basis.
Same Store Residential Revenues with Leasing Concessions on a cash basis is presented in Same Store Results and is considered by the Company to be a supplemental measure to Same Store Residential Revenues in conformity with GAAP to help investors evaluate the impact of both current and historical Leasing Concessions on GAAP-based Same Store Residential Revenues and to more readily enable comparisons to revenue as reported by other companies. Same Store Residential Revenues with Leasing Concessions on a cash basis reflects the impact of Leasing Concessions used in the period and allows an investor to understand the historical trend in cash Leasing Concessions.
% of Stabilized Budgeted NOI – Represents original budgeted 2026 NOI for stabilized properties and projected annual NOI at stabilization (defined as having achieved 90% Physical Occupancy for three consecutive months) for properties that are in lease-up.
Total Budgeted Capital Cost – Estimated remaining cost for projects under development and/or developed plus all capitalized costs incurred to date, including land acquisition costs, construction costs, capitalized real estate taxes and insurance, capitalized interest and loan fees, permits, professional fees, allocated development overhead and other regulatory fees, plus any estimates of costs remaining to be funded for all projects, all in accordance with GAAP. Amounts for partially owned consolidated and unconsolidated properties are presented at 100% of the project.
Total Market Capitalization – The aggregate of the market value of the Company’s outstanding common shares, including restricted shares, the market value of the Company’s operating partnership units outstanding, including restricted units (based on the market value of the Company’s common shares) and the outstanding principal balance of debt. The Company believes this is a useful measure of a real estate operating company’s long-term liquidity and balance sheet strength, because it shows an approximate relationship between a company’s total debt and the current total market value of its assets based on the current price at which the Company’s common shares trade. However, because this measure of leverage changes with fluctuations in the Company’s share price, which occur regularly, this measure may change even when the Company’s earnings, interest and debt levels remain stable.
Traffic – Consists of an expression of interest in an apartment by completing an in-person tour, self-guided tour or virtual tour that may result in an application to lease.
Transaction Accretion (Dilution) – Represents the spread between the Acquisition Cap Rate and the Disposition Yield.
Turnover – Total Residential move-outs (including inter-property and intra-property transfers) divided by total Residential apartment units. Retention rate is the opposite of Turnover.
Unencumbered NOI % – Represents NOI generated by consolidated real estate assets unencumbered by outstanding secured debt as a percentage of total NOI generated by all of the Company's consolidated real estate assets.
Weighted Average Coupons – Contractual interest rate for each debt instrument weighted by principal balances as of March 31, 2026. In case of debt for which fair value hedges are in place, the rate payable under the corresponding derivatives is used in lieu of the contractual interest rate.
Weighted Average Rates – Interest expense for each debt instrument for the quarter ended March 31, 2026 weighted by its average principal balance for the same period. Interest expense includes amortization of premiums, discounts and other comprehensive income on debt and related derivative instruments. In case of debt for which derivatives are in place, the income or expense recognized under the corresponding derivatives is included in the total interest expense for the period.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260428153713/en/
Marty McKenna
312-928-1901
mmckenna@eqr.com
Original: Equity Residential Reports First Quarter 2026 Results
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