Equity Residential (EQR) Q1 2026 earnings summary

Executive summary

• First quarter 2026 operating results met expectations, with strong performance in San Francisco and New York driven by high demand, limited new supply, and record-low turnover of 7.8%.

• Portfolio occupancy exceeded 96%, with financially healthy, higher-earning residents and 96.5% occupancy in the same store segment.

• No acquisitions or sales in Q1, but updated guidance anticipates $165 million in property sales later in the year as part of ongoing portfolio optimization.

• Approximately 3.5 million shares were repurchased for $219.4 million in Q1, totaling $500 million since August 2025.

• The REIT operates 312 properties with 85,211 units across 10 states and D.C., owning 97.6% of its operating partnership.

Financial highlights

• Rental income rose 2.5% year-over-year to $779.8 million, with same store NOI up 1.4% and blended rate growth of 1.5% in Q1.

• Net income attributable to controlling interests was $89.7 million, down from $256.2 million in Q1 2025, mainly due to lower property sales gains.

• EPS was $0.24, compared to $0.67 in the prior year quarter; Normalized FFO per share was $0.99, up 4.2% year-over-year.

• Concession use declined 21% year-over-year, and other income rose, partly offsetting higher utility expenses.

• Same store expenses increased 3.7% year-over-year, driven by utilities, repairs, and insurance.

Outlook and guidance

• Full-year blended rate growth guidance remains at 1.5%-3%, with renewals expected around 4.5%-4.75% and new lease change roughly flat.

• 2026 same store revenue growth expected at 1.2%-3.2%, NOI growth 0.5%-2.5%, and physical occupancy at 96.4%.

• Q2 2026 guidance: EPS $0.28–$0.32, FFO per share $0.97–$1.01, Normalized FFO per share $0.98–$1.02.

• Expecting a 35% decline in new deliveries in 2026 versus 2025, supporting future pricing power.

• Concessions expected to decline 20% for the full year compared to 2025, with sharper reductions in the second half.