NYSE$EQR

Equity Residential · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Delivered outstanding results, supported by favorable supply-and-demand dynamics and healthy labor market, leading to guidance improvements.

Equity Residential reported strong Q2 2022 results, driven by robust demand and continued cost controls. The company delivered a 13.6% increase in same-store revenue and raised its full-year same-store revenue, NOI, and Normalized FFO guidance.

  • Reported a 13.6% increase in same store revenue for the second quarter of 2022 compared to the same period of 2021, driven by strong Physical Occupancy and continued growth in pricing power.
  • Same store expense growth continued to remain in check at 3.1% driven by favorable real estate tax and payroll expense.
  • Increased the midpoint of its full year 2022 same store revenue guidance to 10.5% from 9.0%.
  • Sold a 354-unit apartment property in New York for approximately $265.7 million in April 2022 and in July 2022 sold a 455-unit apartment property in New York for $415.0 million.

Headline financials

Total Revenue

$687M

Previous: -$25K+2748220.0%
EPS (adj)

$0.89

Previous: $0.72+23.6%
Physical Occupancy

96.7%

Previous: 96.1%+0.6%
Blended Rate

14.8%

No prior period
New Lease Change

19.2%

No prior period
Capital Expenditures

-$169M

Previous: -$407M+58.5%
Free Cash Flow

$55.6M

Previous: -$90.2M+161.6%
Net Income

$224M

Previous: $316M-29.2%
Operating Income

$310M

Previous: $377M-17.8%
Gross Profit

$571M

Previous: -$108M+629.5%
Cash & Equivalents

$45M

Previous: $39.5M+14.0%
Total Assets

$20.6B

Previous: $20.5B+0.5%
Stock-Based Comp

$9.4M

Previous: $7.4M+27.0%

Revenue & EPS history

Equity Residential · Revenue · Quarterly

$687M

Q2 2022-2,748,220%vs Q2 2021
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

The Company has established guidance ranges for the third quarter of 2022 EPS, FFO per share and Normalized FFO per share.

Tailwinds

  • Residential Same Store NOI $ 0.01
  • 2022 transaction activity impact on NOI, net (0.01 )
  • Interest expense, net 0.01
  • Other items 0.01
  • Net $ 0.02

Headwinds

  • 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
  • competition and government regulation
  • risks related to the COVID-19 pandemic, many of which are unknown, including the duration and severity of the pandemic
  • the extent of the adverse health impact on the general population and on our residents, customers and employees in particular

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 Q2 2022

Historical avgQ2 2022

-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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