NYSE$EQR

Equity Residential · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Equity Residential's Q1 2023 performance was marked by strong demand and improved delinquency, driving results above expectations.

Equity Residential reported a strong first quarter in 2023, driven by robust demand and improvements in delinquency, particularly in Southern California. The company saw increases in EPS, FFO per share, and normalized FFO per share compared to the same period in 2022. Same-store revenue also increased, while expense growth was higher than expected due to specific factors like California rain storms.

  • Reported a 194.7% increase in EPS, a 10.4% increase in FFO per share, and a 13.0% increase in Normalized FFO per share compared to Q1 2022.
  • Same store revenue increased by 9.2% compared to the first quarter of 2022.
  • Same store expense growth was 7.2%, higher than expected due to repairs and maintenance expenses from California rain storms and increased property-related legal and administrative expenses.
  • Sold a portfolio of seven properties in Los Angeles for approximately $135.3 million and purchased a 262-unit apartment property in Atlanta for approximately $78.6 million.

Headline financials

Total Revenue

$705M

Previous: $653M+7.9%
EPS (adj)

$0.87

Previous: $0.77+13.0%
Physical Occupancy

95.9%

Previous: 96.4%-0.5%
Blended Rate

3.9%

Previous: 13.3%-70.7%
New Lease Change

1.3%

Previous: 15.3%-91.5%
Turnover

9.0%

Previous: 8.7%+3.4%
Capital Expenditures

-$130M

Previous: -$137M+5.4%
Free Cash Flow

$82.2M

Previous: -$66.5M+223.5%
Net Income

$212M

Previous: $70.8M+199.6%
Operating Income

$298M

Previous: $150M+98.7%
Gross Profit

$568M

Previous: $528M+7.4%
Cash & Equivalents

$133M

Previous: $41.1M+224.4%
Total Assets

$20.1B

Previous: $20.8B-3.5%
Stock-Based Comp

$9.04M

Previous: $9.2M-1.7%

Revenue & EPS history

Equity Residential · Revenue · Quarterly

$705M

Q1 2023+7.9%vs Q1 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

The Company has established guidance ranges for the second quarter of 2023 EPS, FFO per share and Normalized FFO per share as listed below:

Tailwinds

  • Higher expected Residential same store NOI.
  • Lower expected property damage from California rain storms.
  • EPS $0.59 to $0.63
  • FFO per share $0.90 to $0.94
  • Normalized FFO per share $0.91 to $0.95

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.1%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+1.0%

Avg return

30 days after

47%

34 / 72 earnings

Positive

+8.8%

Q2 2008

Best reaction

-9.2%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%+0.1%+0.5%
Q4 2025+3.4%+4.7%+1.5%
Q3 2025-4.2%-3.9%+0.5%
Q1 2025+1.0%+1.9%+0.9%
Q4 2024+0.4%+1.4%+2.2%
Q3 2024-5.2%-5.4%+3.3%
Q2 2024-1.7%-0.8%+4.8%
Q1 2024+3.3%+4.2%+4.5%
Q4 2023+1.2%+1.2%+1.2%
Q3 2023-2.3%+2.3%+4.4%
Q2 2023-3.8%-2.4%-4.5%
Q1 2023-1.6%+3.3%-2.8%
Q4 2022-0.6%+1.6%-10.4%
Q3 2022-0.5%-1.6%-2.6%
Q2 2022+3.0%+6.7%+5.7%
Q1 2022-4.6%-9.7%-15.4%
Q4 2021+3.7%+1.6%-2.3%
Q3 2021+2.2%+1.3%+3.0%
Q2 2021-0.4%-0.4%-2.0%
Q1 2021-1.5%-0.7%+2.6%
Q4 2020+2.8%+2.3%+11.4%
Q3 2020-8.8%-7.3%+19.2%
Q2 2020+0.5%+0.6%+6.2%
Q1 2020-2.4%+2.8%-1.3%
Q4 2019-0.1%+0.9%-4.7%
Q3 2019-1.0%-1.2%-4.1%
Q2 2019-0.9%+1.1%+5.9%
Q1 2019+1.6%+1.7%+0.7%
Q4 2018+0.4%+0.4%+2.7%
Q3 2018+3.0%+2.0%+9.4%
Q2 2018+2.2%+1.3%+5.7%
Q1 2018-0.2%+2.5%+1.3%
Q4 2017+0.7%-2.1%-8.0%
Q3 2017+0.3%+1.5%+2.2%
Q2 2017+1.1%+1.6%+2.0%
Q1 2017+1.7%+0.6%+1.4%
Q4 2016-1.3%-0.5%+4.2%
Q3 2016+0.7%-0.9%-2.5%
Q2 2016-6.0%-3.1%-6.5%
Q1 2016-3.5%
Q4 2015-1.4%
Q3 2015+0.2%
Q2 2015-0.8%
Q1 2015-1.7%
Q4 2014+2.4%
Q3 2014-0.1%
Q2 2014+1.1%
Q1 2014+0.5%
Q4 2013+1.8%
Q3 2013-2.8%
Q2 2013-3.1%
Q1 2013-0.5%
Q4 2012+1.4%
Q3 2012+0.2%
Q2 2012-0.9%
Q1 2012-1.3%
Q4 2011+0.2%
Q3 2011-0.1%
Q2 2011-9.2%
Q1 2011-1.1%
Q4 2010+0.1%
Q3 2010+4.1%
Q2 2010-2.1%
Q1 2009-6.1%
Q1 2010-0.9%
Q4 2009-0.1%
Q4 2007-0.1%
Q3 2008+1.1%
Q3 2009+1.1%
Q4 2008+8.8%
Q2 2009+8.8%
Q2 2008+8.8%

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