Equity Residential’s Earnings Top Estimates on Strong Fundamentals

Equity Residential posted its 2025 third-quarter financial results, topping what analysts expected for the quarter thanks to the multifamily-focused real estate investment trust’s performance in major markets like San Francisco and New York. 

Earnings per share for the quarter came in at 76 cents versus the 38 cents for the same quarter in 2024, while normalized funds from operations were $1.02 per share for the 2025 third quarter, above 98 cents from the third quarter of 2024, and topping the $1.01 per share analysts had expected. 

Third-quarter revenue grew to $782 million from $748 million for the quarter, exceeding the $779 million analysts had anticipated. 

“The results we are seeing in San Francisco and New York demonstrate the earnings growth power of our business when we are operating in markets with sustained demand and low levels of competitive new housing supply,” Mark Parrell, CEO of Equity Residential, said during Wednesday’s earnings call. “We believe more markets we operate in will trend in that direction in 2026 assuming the job situation is reasonably constructed.”

Parrell and the other Equity executives on the call said they expect a strong remainder of 2025 and a solid performing 2026, even though headwinds such as tariffs, lower job growth, and the government shutdown make things harder to anticipate. 

“These factors make forecasting demand a little bit more challenging today than it was 90 days ago,” Michael Manelis, chief operating officer for Equity Residential said, on the call. “But what has not changed is the excellent setup we have going into next year due to the dramatic reductions to competitive new supply.”

The firm also boasted strong resident leasing renewal rates, with turnover at its properties hitting record lows. 

“Our centralized renewal process and intense focus on customer satisfaction has helped deliver the lowest reported third-quarter turnover in our history,” Manelis said on the call. “Across our portfolio, the average length of stay has increased by nearly 20 percent from 2019, and retention is at record levels as secular trends and our focus on enhanced customer experiences have driven increased retention.”

Amanda Schiavo can be reached at aschiavo@commercialobserver.com.