{"id":760857,"date":"2023-05-30T17:22:45","date_gmt":"2023-05-30T21:22:45","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/equity-residential-raises-2023-earnings-guidance\/"},"modified":"2023-05-30T17:22:45","modified_gmt":"2023-05-30T21:22:45","slug":"equity-residential-raises-2023-earnings-guidance","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/equity-residential-raises-2023-earnings-guidance\/","title":{"rendered":"Equity Residential Raises 2023 Earnings Guidance"},"content":{"rendered":"

<\/p>\n

Equity Residential Raises 2023 Earnings Guidance<\/span><\/b><\/p>\n

CHICAGO–(BUSINESS WIRE<\/a>)–
\nEquity Residential (NYSE: EQR) today announced that it has raised its guidance ranges for its same store revenue and net operating income (NOI) as well as its Earnings Per Share (EPS), Funds from Operations (FFO) per share and Normalized FFO per share. In connection with the Company\u2019s planned participation in the upcoming Nareit REITweek Conference, the Company has also posted a new Investor Update to its website, www.equityapartments.com<\/a>.<\/p>\n

\n\u201cWe are pleased to raise our outlook for full year same store revenue, NOI and Normalized FFO per share. This increase reflects continued strong demand across our markets, particularly New York, and lower than previously anticipated delinquency in Southern California. We are also benefiting from limited new apartment supply in most of our markets as well as the high prices and low availability of single family housing in these markets,\u201d said Mark J. Parrell, Equity Residential\u2019s President and CEO.<\/p>\n

Full Year 2023 Guidance<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

\n\u00a0<\/p>\n<\/td>\n

\n

\nRevised<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\nPrevious<\/p>\n<\/td>\n<\/tr>\n

\n

\nSame Store (includes Residential and Non-Residential)<\/i>:<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\nPhysical Occupancy<\/p>\n<\/td>\n

\n

\n96.0%<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n96.2%<\/p>\n<\/td>\n<\/tr>\n

\n

\nRevenue change<\/p>\n<\/td>\n

\n

\n5.5% to 6.25%<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n4.5% to 6.0%<\/p>\n<\/td>\n<\/tr>\n

\n

\nExpense change<\/p>\n<\/td>\n

\n

\nNo Change<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n4.0% to 5.0%<\/p>\n<\/td>\n<\/tr>\n

\n

\nNOI change<\/p>\n<\/td>\n

\n

\n6.0% to 7.0%<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n4.75% to 6.25%<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\nEPS<\/p>\n<\/td>\n

\n

\n$2.02 to $2.12<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$1.99 to $2.09<\/p>\n<\/td>\n<\/tr>\n

\n

\nFFO per share<\/p>\n<\/td>\n

\n

\n$3.69 to $3.79<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$3.66 to $3.76<\/p>\n<\/td>\n<\/tr>\n

\n

\nNormalized FFO per share<\/p>\n<\/td>\n

\n

\n$3.73 to $3.83<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$3.70 to $3.80<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\nAll per share results are reported as available to common shares\/units on a diluted basis. The changes in the full year 2023 EPS, FFO per share and Normalized FFO per share guidance ranges are due primarily to:<\/p>\n\n\n\n\n\n\n
\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Positive\/(Negative)
\n
<\/b>Impact<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Revised Full Year 2023 vs
\n
Previous Full Year 2023<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\nSame store NOI<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$<\/p>\n<\/td>\n

\n

\n0.04<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\nOther items<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n(0.01<\/p>\n<\/td>\n

\n

\n)<\/p>\n<\/td>\n<\/tr>\n

\n

\nNet:<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$<\/p>\n<\/td>\n

\n

\n0.03<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\nThe Company has a glossary of defined terms and related reconciliations of non-GAAP financial measures on pages 3 and 4 of this release.<\/p>\n

About Equity Residential<\/b><\/p>\n

\nEquity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. Equity Residential owns or has investments in 303 properties consisting of 79,900 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas\/Ft. Worth and Austin. For more information on Equity Residential, please visit our website at www.equityapartments.com<\/a>.<\/p>\n

Forward-Looking Statements<\/b><\/p>\n

\nIn addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential\u2019s management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, 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, government regulations (such as eviction moratoriums) and competition. These and other risks and uncertainties are described under the heading \u201cRisk Factors\u201d in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityapartments.com<\/a>. Many of these uncertainties and risks are difficult to predict and beyond management\u2019s control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.<\/p>\n

Terms and Definitions:<\/b><\/p>\n

Earnings Per Share (“EPS”)<\/b> \u2013Net income per share calculated in accordance with accounting principles generally accepted in the United States (\u201cGAAP\u201d). Expected EPS is calculated on a basis consistent with actual EPS. Due to the uncertain timing and extent of property dispositions and the resulting gains\/losses on sales, actual EPS could differ materially from expected EPS.<\/p>\n

FFO and Normalized FFO<\/span>:<\/span><\/b><\/p>\n

Funds From Operations (\u201cFFO\u201d) <\/b>\u2013The National Association of Real Estate Investment Trusts(\u201c<\/b>Nareit\u201d) defines FFO (December 2018White Paper) as net income (computed in accordance with GAAP),excluding gains or losses from sales and impairment write-downs of depreciable real estate and land when connected to the main business of a REIT, impairment write-downs of investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity and depreciation andamortization related to real estate. Adjustments for partially owned consolidated and unconsolidated partnershipsand joint ventures are calculated to reflect FFO on the same basis. Expected FFO per share is calculated on a basis consistent with actual FFO per share and is considered an appropriate supplemental measure of expectedoperating performance when compared to expected EPS.<\/p>\n

\nThe Company believes that FFO and FFO available to Common Shares and Units are helpful to investors as supplemental measures of the operating performance of a real estate company, because they are recognized measures of performance by the real estate industry and by excluding gains or losses from sales and impairment write-downs of depreciable real estate and excluding depreciation related to real estate (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO and FFO available to Common Shares and Units can help compare the operating performance of a company\u2019s real estate between periods or as compared to different companies.<\/p>\n

Normalized Funds From Operations (“Normalized FFO”)<\/b> \u2013 Normalized FFObegins with FFO and excludes:<\/p>\n