Equity Residential (EQR) Gives Update on Certain Same-store Operating Trends

Equity Residential (NYSE:EQR) is one of the Best Housing Stocks to Buy According to Hedge Funds. On September 2, the company gave an update on certain same-store operating trends in its business. Its same-store revenue growth is on track within its guidance range. It is finishing its primary leasing season with high physical occupancy and robust retention. Equity Residential (NYSE:EQR) expects to produce same-store revenue growth of 2.6% – 3.2% and physical occupancy of 96.4% for FY 2025. Additionally, it has reaffirmed its Q3 2025 blended rate growth guidance of 2.2% – 2.8%.

Elsewhere, Equity Residential (NYSE:EQR)’s Q2 2025 revenue growth was helped by the continued strong operating fundamentals throughout most of its markets. For Q2 2025 versus Q2 2024, its same store revenues rose 2.7%, same store expenses increased 3.7% and same store Net Operating Income (NOI) went up by 2.3%. During Q2 2025, it acquired a portfolio of 8 properties, consisting of 2,064 apartment units, located in suburban Atlanta for an aggregate purchase price of ~$533.8 million.

Baron Funds, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“Equity Residential (NYSE:EQR) is one of the largest U.S. apartment REITs with 80,000 high-quality apartment units concentrated in coastal markets with strong barriers to entry, compelling resident income/demographics, and high-cost home ownership. The company maintains a strong and liquid balance sheet.

It is valued at a 6.1% implied capitalization rate representing a discount to private market transactions in the high 4% to 5% capitalization range. At its public market implied valuation of only $410,000 per apartment, the shares are valued at an approximate 20% discount to private market values and a much larger discount to replacement cost.”

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Disclosure: None. This article is originally published at Insider Monkey.