Equity Residential reports Q3 normalized FFO 96c, consensus 97c

Reports Q3 revenue $724.1M, consensus $727.96M. Same store revenue increased 4.1% for the third quarter of 2023 compared to the third quarter of 2022 and was negatively impacted by weaker than expected revenue performance in San Francisco and Seattle as well as the non-cash write-off of approximately $1.5M in straight-line receivables due to the recent bankruptcy of Rite Aid. “Our East Coast portfolio performed very well in the quarter. Strong demand combined with low supply in Boston and New York and rapid absorption of supply in Washington, D.C. position these markets favorably going forward. While the East Coast outperformed our expectations, the San Francisco and Seattle markets underperformed due to lower recent job growth in our target affluent renter demographic and, together with the Rite Aid bankruptcy, led us to adjust guidance,” said Mark J. Parrell, Equity Residential’s President and CEO. “We are pleased with our progress in reducing our COVID era delinquency but the legal process is lengthy and uneven and we will likely end the year with modestly more delinquency than our previous goal. As we think about 2024 operating performance, continued demand from our well-employed renter demographic and limited new supply in most of our markets should lead to another year of solid same store revenue growth.”