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Equity Residential (EQR) Stock

Equity Residential Stock Details, Movements and Public Alerts

Equity Residential (EQR): The $26B Apartment REIT Giant Pivoting from Coastal to Sun Belt Markets

CEO Mark Parrell is rewriting Equity Residential's geographic playbook. The company legendary investor Sam Zell built into America's premier coastal apartment REIT (Chicago, Boston, San Francisco, New York) now actively sells those assets to buy in Denver, Dallas, Austin, and Atlanta. The pivot reflects demographic reality: Sun Belt markets add population 3-4x faster than coastal cities, millennials and Gen Z prefer affordability over amenities, and remote work enabled migration away from $3,500/month studios. Equity Residential's 80,000+ units span 305 communities valued at $30B+, generating $2.9B revenue and 68% NOI margins. At 16x FFO with a 4.1% dividend yield, EQR trades in-line with apartment REIT peers, offering diversified multifamily exposure as Parrell executes the coastal-to-Sun Belt transition. The risk: Sun Belt markets face apartment supply waves in 2024-2025, temporarily pressuring rents before absorption normalizes.

52-Week Range

$73.58 - $58.19

-16.96% from high · +5.00% from low

Avg Daily Volume

1,950,404

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

19.98

Near market average

Forward P/E

44.44

Earnings expected to decline

PEG Ratio

8.15

Potentially overvalued

Price to Book

2.08

EV/EBITDA

12.43

EPS (TTM)

$3.05

Price to Sales

7.79

Beta

0.76

Less volatile than market

How is EQR valued relative to its earnings and growth?
Equity Residential trades at a P/E ratio of 19.98, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 44.44 is higher than the current P/E, indicating analysts expect earnings to decline over the next year. The PEG ratio of 8.15 indicates a premium valuation even accounting for growth.
What is EQR's risk profile compared to the market?
With a beta of 0.76, Equity Residential is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 2.08 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

37.60%

Operating Margin

29.00%

EBITDA

$1.88B

Return on Equity

10.40%

Return on Assets

2.56%

Revenue Growth (YoY)

4.60%

Earnings Growth (YoY)

100.90%

How profitable and efficient is EQR's business model?
Equity Residential achieves a profit margin of 37.60%, meaning it retains $37.60 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 29.00% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 10.40% and ROA at 2.56%, the company achieves moderate returns on invested capital.
What are EQR's recent growth trends?
Equity Residential's revenue grew by 4.60% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 100.90% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against REIT - RESIDENTIAL industry averages for proper context.

Dividend Information

Dividend Per Share

$2.75

Dividend Yield

4.54%

Ex-Dividend Date

Sep 25, 2025

Dividend Date

Oct 10, 2025

What dividend income can investors expect from EQR?
Equity Residential offers a dividend yield of 4.54%, paying $2.75 per share annually. This high yield exceeds 4%, significantly outperforming the S&P 500 average of 1.5-2% and most investment-grade bonds. For income-focused investors, this represents an attractive cash flow opportunity, though high yields sometimes signal market concerns about sustainability. To receive the next dividend, shares must be purchased before the ex-dividend date of Sep 25, 2025.
How reliable is EQR's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Equity Residential pays $2.75 per share in dividends against earnings of $3.05 per share, resulting in a payout ratio of 90.26%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for Oct 10, 2025.

Company Size & Market

Market Cap

$24.0B

Revenue (TTM)

$3.08B

Revenue/Share (TTM)

$8.11

Shares Outstanding

380.48M

Book Value/Share

$29.08

Asset Type

Common Stock

What is EQR's market capitalization and position?
Equity Residential has a market capitalization of $24.0B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 380.48M shares outstanding, the company's ownership is relatively concentrated. As a participant in the REIT - RESIDENTIAL industry, it competes with other firms in this sector.
How does EQR's price compare to its book value?
Equity Residential's book value per share is $29.08, while the current stock price is $61.10, resulting in a price-to-book (P/B) ratio of 2.10. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$70.38

15.19% upside potential

Analyst Recommendations

Strong Buy

4

Buy

7

Hold

15

Sell

0

Strong Sell

0

How reliable are analyst predictions for EQR?
26 analysts cover EQR with 42% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $70.38 implies 15.2% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on EQR?
Current analyst recommendations:4 Strong Buy, 7 Buy, 15 Hold, 00The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:25 AM

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Equity Residential (EQR) Stock Analysis 2025: Complete Investment Guide

From Zell's Coastal Empire to Sun Belt Future

Sam Zell built Equity Residential into America's largest apartment REIT through coastal market concentration—high barriers, limited supply, premium rents. CEO Mark Parrell (promoted 2019, 25-year EQR veteran) inherited the Zell playbook but recognized its expiration. Remote work enabled coastal exodus, San Francisco rents dropped 20%, and Sun Belt markets absorbed millions of migrants seeking affordability. Parrell's response: sell $3B+ of coastal assets (2021-2024) and recycle into Denver, Dallas, Austin, and Atlanta. The portfolio transformation continues: coastal markets dropped from 85% to 70% of NOI while Sun Belt exposure grew from 15% to 30%. By 2027, Parrell targets 50/50 coastal/Sun Belt balance—diversification reducing geographic concentration risk while capturing demographic tailwinds.

Business Model & Competitive Moat

Equity Residential's moat is scale, capital access, and operational excellence. The 80,000+ unit portfolio generates $2.9B revenue supporting institutional-grade management, marketing, and technology investment smaller operators cannot match. A-rated credit (lowest cost of capital among apartment REITs) enables accretive acquisitions when private market distress creates opportunities. NOI margins (68%) reflect operational efficiency: centralized leasing, revenue management systems, and national vendor contracts optimize profitability. However, apartments face minimal switching costs—tenants move when rents increase or better options appear—limiting pricing power to local supply/demand dynamics rather than customer lock-in.

Financial Performance

  • •Revenue: $2.9B annually, 3-5% same-store growth; normalizing from 8-10% post-pandemic surge
  • •NOI Margins: 68% (best-in-class); operational efficiency offsetting wage and maintenance inflation
  • •FFO: $1.7B ($4.20/share); 5-6% annual growth from portfolio repositioning and organic rent growth
  • •Balance Sheet: $8B debt, 30% debt/cap; A-rated credit, lowest borrowing costs in sector
  • •Dividend: $2.70/share (4.1% yield), 30+ years consecutive; 65-70% FFO payout ratio

Growth Catalysts

  • •Sun Belt Expansion: $2B+ annual acquisitions in Denver, Dallas, Austin, Atlanta capturing population growth
  • •Coastal Recovery: Return-to-office mandates rebuilding NYC, Boston, Seattle apartment demand
  • •New Development Pipeline: $1B+ under construction delivering 2025-2027; internal growth supplementing acquisitions
  • •Supply Wave Absorption: 2024-2025 Sun Belt deliveries peak; 2026+ supply moderates, rent growth accelerates
  • •Favorable Demographics: Millennials/Gen Z delayed homeownership extends renting years; 70M renters by 2030

Risks & Challenges

  • •Sun Belt Supply Wave: Austin, Phoenix, Nashville seeing 5-8% inventory growth; temporary rent pressure
  • •Interest Rate Sensitivity: REIT valuations decline with rising rates; 4.1% yield competes with 5% Treasuries
  • •Coastal Exposure: 70% still coastal markets with rent control, tenant-friendly laws, political risk
  • •Execution Risk: Geographic pivot requires selling at fair prices, buying without overpaying
  • •Recession Sensitivity: Job losses increase vacancies; apartment demand tied to employment

Competitive Landscape

Equity Residential competes with apartment REIT peers AvalonBay (AVB, $28B market cap, similar coastal-to-Sun Belt pivot), Essex Property Trust (ESS, $17B, West Coast pure-play), Mid-America Apartment (MAA, $18B, Sun Belt focused), and Camden Property Trust (CPT, $14B, Sun Belt). EQR's scale (#2 by market cap) provides capital access advantages, while geographic diversification reduces single-market risk versus Essex. Mark Parrell's challenge is execution: timing coastal asset sales, Sun Belt acquisitions, and development deliveries to maximize portfolio value. AvalonBay executes similar strategy with stronger recent returns; EQR must demonstrate comparable repositioning success.

Who Is This Stock Suitable For?

Perfect For

  • ✓Income investors seeking 4.1% yield from blue-chip REIT with 30+ year dividend history
  • ✓Real estate allocators wanting diversified apartment exposure across coastal and Sun Belt
  • ✓Long-term investors betting on demographic shift toward renting
  • ✓Moderate risk investors preferring geographic diversification over pure-play concentration

Less Suitable For

  • ✗Aggressive growth investors seeking 10%+ annual appreciation
  • ✗Yield-focused investors requiring 5%+ (specialty REITs offer higher)
  • ✗Sun Belt bulls preferring MAA's pure-play exposure
  • ✗Tax-sensitive investors (REIT dividends taxed as ordinary income)

Investment Thesis

Equity Residential offers diversified apartment REIT exposure as CEO Mark Parrell executes strategic pivot from coastal to Sun Belt markets. The 16x FFO valuation (in-line with peers) and 4.1% dividend yield reflect normalized expectations post-pandemic, while A-rated balance sheet and 80,000+ unit scale provide stability through market cycles. Near-term Sun Belt supply pressures rents, but 2026+ absorption creates growth runway as deliveries moderate.

The investment case is balanced: coastal recovery potential plus Sun Belt growth capture equals diversified upside, while 68% margins and 30+ year dividend history provide downside protection. At $66, EQR offers fair value for quality multifamily exposure. Suitable for income portfolios seeking REIT diversification without concentrated geographic bets; accumulate on 10%+ pullbacks for enhanced yield entry points.

Conclusion

Equity Residential is a HOLD/ACCUMULATE for income investors seeking diversified apartment REIT exposure. The 4.1% yield and 30+ year dividend history provide income stability, while geographic repositioning captures demographic shifts. Position at fair value currently; accumulate below $60 for enhanced yield. Suitable for diversified REIT allocations with 3-5 year horizons.
Bull Case
$82 (24% upside) - Coastal recovery + Sun Belt absorption; FFO growth accelerates to 7-8%
Base Case
$72 (9% upside) - 3-4% same-store growth, successful repositioning, stable dividend
Bear Case
$54 (18% downside) - Prolonged supply pressure, coastal weakness persists, multiple compresses to 13x

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