CHICAGO—Second-quarter results for apartment REIT EquityResidential came in at the high end of the company'sexpectation and also beat analysts' projections. Normalized fundsfrom operations rose 10% from a year ago to 78 cents per share; theconsensus estimates by Zacks Equity Research,Cowen & Co. and ThomsonReuters came in a penny per share lower.
“Demand for well located, high quality rental housing in ourcore markets remains exceptionally strong as favorable demographicsand an improving economy combine to deliver operating results atthe high end of our expectations portfolio-wide,” saysDavid J. Neithercut, EQR's president and CEO.Accordingly, the REIT expects full year growth in same storerevenues of 4% and normalized FFO to increase 9% per share.
Analysts at Cowen note that EQR's same-store NOI, at $418.7million, was two cents per share above their estimate. “SSNOI was100 basis points above our 4.5% estimate, as revenue growth wasslightly higher (4.1% vs. our 3.8% estimate) and expense growth wassignificantly lower (1.4% vs. our 2.5%),” they write.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
