Equity Residential Reports First Quarter 2026 ResultsApr 28, 2026
San Francisco and New York Continue to Produce Strong Results
CHICAGO, April 28, 2026--(BUSINESS WIRE)--Equity Residential (NYSE: EQR) today reported results for the quarter ended March 31, 2026.
First Quarter 2026 Results
All per share results are reported as available to common shares/units on a diluted basis.
Quarter Ended March 31, 2026 2025 $ Change % Change Earnings Per Share (EPS) $ 0.24 $ 0.67 $ (0.43 ) (64.2 %) Funds from Operations (FFO) per share $ 0.89 $ 0.94 $ (0.05 ) (5.3 %) Normalized FFO (NFFO) per share $ 0.99 $ 0.95 $ 0.04 4.2 %
Recent Highlights
For the first quarter of 2026 compared to the first quarter of 2025, same store revenues increased 2.2%, same store expenses increased 3.7% and same store Net Operating Income (NOI) increased 1.4%. The Company's resident Turnover of 7.8% in the first quarter of 2026 was the lowest in its history. First quarter 2026 Blended Rate growth demonstrated a 130 basis point sequential improvement from the fourth quarter of 2025 to 1.5%. On a same store cash basis, Leasing Concessions in the first quarter of 2026 were down 21% versus the first quarter of 2025, reflecting continued improvement in leasing amidst declining supply in our markets. Compared to the first quarter of 2025, Physical Occupancy improved 10 basis points and Bad Debt, Net improved 10 basis points in the first quarter of 2026, reflecting solid demand and customer standing. As previously announced, during the first quarter of 2026, the Company repurchased and retired approximately 3.5 million of its common shares at a weighted average purchase price of $63.42 per share, for an aggregate purchased amount of approximately $219.4 million. During the first quarter of 2026, the Company increased the annual dividend on its common shares to $2.81 per share, a 1.4% increase over the 2025 annualized dividend.
"We have gotten off to a solid start to 2026 and are well positioned entering the peak leasing season. Our substantial exposure to the well performing San Francisco and New York markets drove operating performance in the first quarter that exceeded our expectations. These two markets are characterized by strong demand from our target higher earning renter demographic for our well-located apartment homes and modest levels of new supply," said Mark J. Parrell, Equity Residential's President and CEO. "With new apartment supply levels set to decline for the foreseeable future across all our markets, we are continuing to see concessions decline, which provides the setup for pricing power in the latter half of the year. Combine that with a resilient U.S. economy, lifestyle preferences and cost considerations that favor rental housing and a country that remains significantly underhoused, we expect revenue performance to improve more broadly across our portfolio as the job market accelerates."
Story Continues
Results Per Share
The change in EPS for the quarter ended March 31, 2026 compared to the same period of 2025 is due primarily to lower property sale gains, the various adjustment items listed on page 24 of this release and the items described below.
The per share change in FFO for the quarter ended March 31, 2026 compared to the same period of 2025 is due primarily to the various adjustment items listed on page 24 of this release and the items described below.
The per share change in Normalized FFO is due primarily to:
Positive/(Negative) Impact First Quarter 2026 vs.
First Quarter 2025 Residential same store NOI $ 0.02 Lease-Up NOI 0.01 2025 transaction activity impact on NOI, net (0.01 ) Interest expense, net (0.01 ) Other items (primarily corporate overhead and share repurchase impacts) (1) 0.03 Net $ 0.04
(1) Corporate overhead includes property management and general administrative expenses.
The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 26 through 31 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 6, 28 and 29 of this release.
Same Store Results
The following table shows the total same store results for the periods presented (includes Residential and Non-Residential).
First Quarter 2026 vs.
First Quarter 2025 First Quarter 2026 vs.
Fourth Quarter 2025 Apartment Units 78,885 81,821 Physical Occupancy 96.5% vs. 96.4% 96.4% vs. 96.1% Revenues 2.2% 0.5% Expenses 3.7% 6.0% NOI 1.4% (2.1%)
The following table reflects the detail of the change in Same Store Residential Revenues, which is presented on a GAAP basis showing Leasing Concessions on a straight-line basis.
First Quarter 2026 vs.
First Quarter 2025 First Quarter 2026 vs.
Fourth Quarter 2025 % Change % Change Same Store Residential Revenues- comparable period Lease rates 1.7 % 0.1 % Leasing Concessions (0.2 %) 0.0 % Vacancy gain (loss) 0.1 % 0.2 % Bad Debt, Net 0.1 % 0.1 % Other (1) 0.6 % 0.1 % Same Store Residential Revenues- current period 2.3 % 0.5 %
(1) Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items.
See page 11 for detail and reconciliations of Same Store Residential Revenues on a GAAP basis to Same Store Residential Revenues with Leasing Concessions on a cash basis.
Residential Same Store Operating Statistics
The following table includes select operating metrics for Residential Same Store Properties (for 78,885 same store apartment units):
April 2026 (1) Q1 2026 Q4 2025 Q1 2025 Physical Occupancy 96.3% 96.5% 96.2% 96.4% Percentage of Residents Renewing by month/quarter 61.5% 61.6% 61.1% 61.5% New Lease Change (1.1%) (2.8%) (5.4%) (2.6%) Renewal Rate Achieved 5.3% 4.7% 4.4% 4.8% Blended Rate 3.0% 1.5% 0.2% 1.5%
(1) April 2026 results are preliminary as of April 28th.
Investments Activity
The Company did not acquire or sell any properties during the first quarter of 2026.
Capital Markets and Balance Sheet Activity
During the first quarter of 2026, the Company repurchased and retired approximately 3.5 million of its common shares at a weighted average purchase price of $63.42 per share, for an aggregate purchased amount of approximately $219.4 million. All common share repurchases were funded with excess disposition proceeds from 2025 sale activity.
Second Quarter 2026 Guidance
The Company has established guidance ranges for the second quarter of 2026 EPS, FFO per share and Normalized FFO per share as listed below:
Q2 2026
Guidance EPS $0.28 to $0.32 FFO per share $0.97 to $1.01 Normalized FFO per share $0.98 to $1.02
The difference between the first quarter of 2026 actual EPS of $0.24 and the second quarter of 2026 EPS guidance midpoint of $0.30 is due primarily to lower expected property sale gains, lower expected other expenses and the items described below.
The difference between the first quarter of 2026 actual FFO of $0.89 per share and the second quarter of 2026 FFO guidance midpoint of $0.99 per share is due primarily to lower expected other expenses and the items described below.
The difference between the first quarter of 2026 actual Normalized FFO of $0.99 per share and the second quarter of 2026 Normalized FFO guidance midpoint of $1.00 per share is due primarily to:
Expected
Positive/(Negative)
Impact Second Quarter 2026 vs.
First Quarter 2026 Residential same store NOI $ 0.03 Interest expense, net (0.01 ) Corporate overhead (0.01 ) Net $ 0.01
About Equity Residential
Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, owns and manages 312 rental properties consisting of 85,211 apartment units in dynamic metro areas across the U.S. with a primary concentration in major coastal markets, diversified by a targeted presence in the high-growth metro areas of Atlanta, Dallas/Austin and Denver. For more information on Equity Residential, please visit our website at www.equityapartments.com.
Forward-Looking Statements
In 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’s 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 and competition. These and other risks and uncertainties are described under the heading "Risk Factors" 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. Many of these uncertainties and risks are difficult to predict and beyond management’s 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.
A live web cast of the Company’s conference call discussing these results will take place tomorrow, Wednesday, April 29, 2026 at 10:00 a.m. CT. Please visit the Investor section of the Company’s website at www.equityapartments.com for the webcast link.
Equity Residential
Consolidated Statements of Operations
(Amounts in thousands except per share data)
(Unaudited) Quarter Ended March 31, 2026 2025 REVENUES Rental income $ 779,846 $ 760,810 EXPENSES Property and maintenance 149,656 143,973 Real estate taxes and insurance 117,026 111,752 Property management 35,141 35,816 General and administrative 16,865 18,255 Depreciation 247,496 256,746 Total expenses 566,184 566,542 Net gain (loss) on sales of real estate properties (32 ) 154,152 Interest and other income 2,238 1,692 Other expenses (40,788 ) (4,156 ) Interest: Expense incurred, net (77,370 ) (72,114 ) Amortization of deferred financing costs (2,145 ) (2,144 ) Income before income and other taxes, income (loss) from investments in unconsolidated entities and net gain (loss) on sales of land parcels 95,565 271,698 Income and other tax (expense) benefit (422 ) (422 ) Income (loss) from investments in unconsolidated entities (2,042 ) (6,411 ) Net gain (loss) on sales of land parcels — (67 ) Net income 93,101 264,798 Net (income) loss attributable to Noncontrolling Interests: Operating Partnership (1,953 ) (7,102 ) Partially Owned Properties (1,069 ) (1,104 ) Net income attributable to controlling interests 90,079 256,592 Preferred distributions (356 ) (356 ) Net income available to Common Shares $ 89,723 $ 256,236 Earnings per share – basic: Net income available to Common Shares $ 0.24 $ 0.68 Weighted average Common Shares outstanding 375,643 379,208 Earnings per share – diluted: Net income available to Common Shares $ 0.24 $ 0.67 Weighted average Common Shares outstanding 385,108 391,179 Distributions declared per Common Share outstanding $ 0.7025 $ 0.6925
Equity Residential
Consolidated Statements of Funds From Operations and Normalized Funds From Operations
(Amounts in thousands except per share and Unit data)
(Unaudited) Quarter Ended March 31, 2026 2025 Net income $ 93,101 $ 264,798 Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties (1,069 ) (1,104 ) Preferred distributions (356 ) (356 ) Net income available to Common Shares and Units 91,676 263,338 Adjustments: Depreciation 247,496 256,746 Depreciation – Non-real estate additions (1,009 ) (950 ) Depreciation – Partially Owned Properties (616 ) (478 ) Depreciation – Unconsolidated Properties 3,332 4,395 Net (gain) loss on sales of unconsolidated entities - operating assets — 36 Net (gain) loss on sales of real estate properties 32 (154,152 ) FFO available to Common Shares and Units 340,911 368,935 Adjustments (see note for additional detail): Write-off of pursuit costs 954 1,321 Debt extinguishment and preferred share redemption (gains) losses — 97 Non-operating asset (gains) losses 416 438 Other miscellaneous items 38,811 1,727 Normalized FFO available to Common Shares and Units $ 381,092 $ 372,518 FFO $ 341,267 $ 369,291 Preferred distributions (356 ) (356 ) FFO available to Common Shares and Units $ 340,911 $ 368,935 FFO per share and Unit – basic $ 0.89 $ 0.95 FFO per share and Unit – diluted $ 0.89 $ 0.94 Normalized FFO $ 381,448 $ 372,874 Preferred distributions (356 ) (356 ) Normalized FFO available to Common Shares and Units $ 381,092 $ 372,518 Normalized FFO per share and Unit – basic $ 0.99 $ 0.96 Normalized FFO per share and Unit – diluted $ 0.99 $ 0.95 Weighted average Common Shares and Units outstanding – basic 383,819 389,719 Weighted average Common Shares and Units outstanding – diluted 385,108 391,179
Note: See Adjustments from FFO to Normalized FFO for additional detail regarding the adjustments from FFO to Normalized FFO. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.
Equity Residential
Consolidated Balance Sheets
(Amounts in thousands except for share amounts)
(Unaudited) March 31, December 31, 2026 2025 ASSETS Land $ 5,573,564 $ 5,563,407 Depreciable property 24,828,057 24,705,540 Projects under development 85,966 100,561 Land held for development 57,919 86,341 Investment in real estate 30,545,506 30,455,849 Accumulated depreciation (11,264,396 ) (11,016,900 ) Investment in real estate, net 19,281,110 19,438,949 Investments in unconsolidated entities1 325,566 325,939 Cash and cash equivalents 34,677 55,904 Restricted deposits 104,432 102,950 Right-of-use assets 452,318 454,916 Other assets 319,050 367,365 Total assets $ 20,517,153 $ 20,746,023 LIABILITIES AND EQUITY Liabilities: Mortgage notes payable, net $ 1,590,859 $ 1,589,904 Notes, net 6,000,230 5,998,458 Line of credit and commercial paper 748,417 586,648 Accounts payable and accrued expenses 141,575 109,165 Accrued interest payable 52,479 73,860 Lease liabilities 303,813 304,575 Other liabilities 306,187 324,616 Security deposits 82,306 82,155 Distributions payable 269,392 267,508 Total liabilities 9,495,258 9,336,889 Commitments and contingencies Redeemable Noncontrolling Interests – Operating Partnership 165,420 176,289 Equity: Shareholders' equity: Preferred Shares of beneficial interest, $0.01 par value; 100,000,000 shares authorized; 343,100 shares issued and outstanding as of March 31, 2026 and December 31, 2025 17,155 17,155 Common Shares of beneficial interest, $0.01 par value; 1,000,000,000 shares authorized; 374,674,719 shares issued and outstanding as of March 31, 2026 and 377,806,173 shares issued and outstanding as of December 31, 2025 3,747 3,778 Paid in capital 9,846,857 9,824,460 Retained earnings 800,704 1,193,931 Accumulated other comprehensive income (loss) 2,460 2,175 Total shareholders’ equity 10,670,923 11,041,499 Noncontrolling Interests: Operating Partnership 187,137 192,135 Partially Owned Properties (1,585 ) (789 ) Total Noncontrolling Interests 185,552 191,346 Total equity 10,856,475 11,232,845 Total liabilities and equity $ 20,517,153 $ 20,746,023
1 Includes $260.9 million and $261.4 million in unconsolidated development and operating projects as of March 31, 2026 and December 31, 2025, respectively. See Partially Owned Properties and/or Development and Lease-Up Projects for additional detail on unconsolidated projects.
Equity Residential
Portfolio Summary
As of March 31, 2026
% of
Stabilized Average Apartment Budgeted Rental Markets/Metro Areas Properties Units NOI Rate Los Angeles 56 14,433 16.0 % $ 2,985 Orange County 12 3,718 4.9 % 3,040 San Diego 10 2,225 3.1 % 3,313 Subtotal – Southern California 78 20,376 24.0 % 3,031 San Francisco 41 11,569 16.4 % 3,558 Washington, D.C. 42 13,553 14.7 % 2,864 New York 34 8,685 14.4 % 4,864 Boston 25 6,907 10.7 % 3,719 Seattle 38 8,051 9.1 % 2,723 Atlanta 22 6,420 4.4 % 1,917 Denver 16 4,678 3.6 % 2,135 Dallas/Austin 16 4,972 2.7 % 1,886 Total 312 85,211 100.0 % $ 3,094
Properties Apartment Units Wholly Owned Properties 297 81,539 Partially Owned Properties – Consolidated 12 2,656 Partially Owned Properties – Unconsolidated 3 1,016 312 85,211
Note: Projects under development are not included in the Portfolio Summary until construction has been completed.
Equity Residential
Portfolio Rollforward Q1 2026
($ in thousands) Properties Apartment
Units 12/31/2025 312 85,190 Configuration Changes — 21 3/31/2026 312 85,211
Equity Residential
First Quarter 2026 vs. First Quarter 2025
Same Store Results/Statistics Including 78,885 Same Store Apartment Units
(includes Residential and Non-Residential)
($ in thousands except for Average Rental Rate) Results Statistics Description Revenues Expenses NOI Average
Rental
Rate Physical
Occupancy Turnover Q1 2026 $ 746,478 $ 248,558 $ 497,920 $ 3,154 96.5 % 7.8 % Q1 2025 $ 730,628 $ 239,621 $ 491,007 $ 3,086 96.4 % 7.9 % Change $ 15,850 $ 8,937 $ 6,913 $ 68 0.1 % (0.1 %) Change 2.2 % 3.7 % 1.4 % 2.2 %
First Quarter 2026 vs. Fourth Quarter 2025
Same Store Results/Statistics Including 81,821 Same Store Apartment Units
(includes Residential and Non-Residential)
($ in thousands except for Average Rental Rate) Results Statistics Description Revenues Expenses NOI Average
Rental
Rate Physical
Occupancy Turnover Q1 2026 $ 763,082 $ 254,689 $ 508,393 $ 3,113 96.4 % 7.8 % Q4 2025 $ 759,439 $ 240,351 $ 519,088 $ 3,106 96.1 % 8.3 % Change $ 3,643 $ 14,338 $ (10,695 ) $ 7 0.3 % (0.5 %) Change 0.5 % 6.0 % (2.1 %) 0.2 %
Equity Residential
Same Store Residential Revenues – GAAP to Cash Basis (1)
($ in thousands) First Quarter 2026 vs. First Quarter 2025 First Quarter 2026 vs. Fourth Quarter 2025 78,885 Same Store Apartment Units 81,821 Same Store Apartment Units Q1 2026 Q1 2025 Q1 2026 Q4 2025 Same Store Residential Revenues (GAAP Basis) $ 719,667 $ 703,612 $ 736,271 $ 732,488 Leasing Concessions amortized 6,946 5,681 7,459 7,291 Leasing Concessions granted (5,443 ) (6,924 ) (5,975 ) (7,963 ) Same Store Residential Revenues with Leasing Concessions on a cash basis $ 721,170 $ 702,369 $ 737,755 $ 731,816 % change - GAAP revenue 2.3 % 0.5 % % change - cash revenue 2.7 % 0.8 %
(1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail.
Same Store Net Operating Income By Quarter
Including 78,885 Same Store Apartment Units
(includes Residential and Non-Residential)
($ in thousands) Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025 Same store revenues $ 746,478 $ 742,894 $ 742,962 $ 737,998 $ 730,628 Same store expenses 248,558 234,570 239,401 233,991 239,621 Same store NOI $ 497,920 $ 508,324 $ 503,561 $ 504,007 $ 491,007
Equity Residential
First Quarter 2026 vs. First Quarter 2025
Same Store Residential Results/Statistics by Market
Increase (Decrease) from Prior Year's Quarter Markets/Metro Areas Apartment
Units Q1 2026
% of
Actual
NOI Q1 2026
Average
Rental
Rate Q1 2026
Weighted
Average
Physical
Occupancy % Q1 2026
Turnover Revenues Expenses NOI Average
Rental
Rate Physical
Occupancy Turnover Los Angeles 13,836 16.5 % $ 2,984 95.7 % 8.6 % 0.7 % 4.5 % (1.0 %) 0.7 % 0.0 % (0.4 %) Orange County 3,718 5.2 % 3,040 95.9 % 7.9 % 2.1 % 1.7 % 2.2 % 2.6 % (0.4 %) 0.7 % San Diego 2,225 3.4 % 3,313 96.0 % 8.8 % 1.3 % 2.5 % 1.0 % 1.7 % (0.3 %) 0.1 % Subtotal – Southern California 19,779 25.1 % 3,031 95.8 % 8.5 % 1.1 % 3.9 % (0.1 %) 1.2 % (0.1 %) (0.1 %) San Francisco 11,344 17.4 % 3,553 97.7 % 8.4 % 6.5 % 1.5 % 8.7 % 5.6 % 0.9 % 0.1 % Washington, D.C. 12,928 14.9 % 2,879 96.3 % 6.2 % 1.7 % 4.7 % 0.2 % 2.8 % (1.1 %) 0.1 % New York 8,235 14.3 % 4,916 97.9 % 5.6 % 4.6 % 2.3 % 6.4 % 4.3 % 0.3 % (0.7 %) Boston 6,907 10.4 % 3,719 95.8 % 6.9 % 1.5 % 7.1 % (0.9 %) 1.4 % 0.0 % (0.2 %) Seattle 8,050 9.2 % 2,723 96.1 % 9.0 % 2.0 % 5.7 % 0.4 % 2.4 % (0.4 %) 0.3 % Denver 3,972 3.4 % 2,140 96.8 % 9.0 % (5.9 %) 2.6 % (9.8 %) (7.7 %) 1.7 % (1.8 %) Atlanta 4,126 3.1 % 1,946 96.2 % 8.7 % (2.0 %) 6.3 % (6.2 %) (2.6 %) 0.6 % 0.4 % Dallas/Austin 3,544 2.2 % 1,810 95.7 % 9.5 % (1.3 %) (3.6 %) 0.4 % (2.0 %) 0.6 % (0.6 %) Total 78,885 100.0 % $ 3,154 96.5 % 7.8 % 2.3 % 3.5 % 1.7 % 2.2 % 0.1 % (0.1 %) Note: The above table reflects Residential same store results only. Residential operations account for more than 96.0% of total revenues for the quarter ended March 31, 2026.
Equity Residential
First Quarter 2026 vs. Fourth Quarter 2025
Same Store Residential Results/Statistics by Market
Increase (Decrease) from Prior Quarter Markets/Metro Areas Apartment
Units Q1 2026
% of
Actual
NOI Q1 2026
Average
Rental
Rate Q1 2026
Weighted
Average
Physical
Occupancy % Q1 2026
Turnover Revenues Expenses NOI Average
Rental
Rate Physical
Occupancy Turnover Los Angeles 13,836 16.1 % $ 2,984 95.7 % 8.6 % 0.1 % 5.1 % (2.3 %) 0.3 % (0.2 %) (0.3 %) Orange County 3,718 5.1 % 3,040 95.9 % 7.9 % 0.2 % 3.3 % (0.6 %) 1.0 % (0.6 %) (0.1 %) San Diego 2,225 3.4 % 3,313 96.0 % 8.8 % (0.1 %) 2.2 % (0.7 %) (0.1 %) 0.0 % (2.0 %) Subtotal – Southern California 19,779 24.6 % 3,031 95.8 % 8.5 % 0.1 % 4.6 % (1.7 %) 0.4 % (0.2 %) (0.5 %) San Francisco 11,344 17.0 % 3,553 97.7 % 8.4 % 2.2 % 5.2 % 1.0 % 1.4 % 0.8 % (0.9 %) Washington, D.C. 12,928 14.6 % 2,879 96.3 % 6.2 % 0.2 % 9.9 % (4.1 %) 0.1 % 0.0 % (1.0 %) New York 8,235 14.0 % 4,916 97.9 % 5.6 % 1.1 % 3.5 % (0.6 %) 0.8 % 0.3 % (0.2 %) Boston 6,907 10.1 % 3,719 95.8 % 6.9 % (0.1 %) 11.5 % (4.8 %) 0.1 % (0.2 %) 0.4 % Seattle 8,050 9.1 % 2,723 96.1 % 9.0 % (0.3 %) 8.2 % (3.5 %) (0.1 %) (0.2 %) 1.1 % Atlanta 6,190 4.5 % 1,922 96.0 % 8.3 % 0.8 % 4.8 % (1.3 %) (0.9 %) 1.5 % (0.9 %) Denver 4,469 3.7 % 2,143 96.8 % 9.1 % (1.5 %) 0.4 % (2.4 %) (2.8 %) 1.3 % (1.7 %) Dallas/Austin 3,919 2.4 % 1,853 95.3 % 9.8 % 0.0 % 2.0 % (1.4 %) (0.9 %) 0.8 % (1.3 %) Total 81,821 100.0 % $ 3,113 96.4 % 7.8 % 0.5 % 5.8 % (2.0 %) 0.2 % 0.3 % (0.5 %) Note: The above table reflects Residential same store results only. Residential operations account for more than 96.0% of total revenues for the quarter ended March 31, 2026.
Equity Residential
First Quarter 2026 vs. First Quarter 2025
Total Same Store Operating Expenses Including 78,885 Same Store Apartment Units
(includes Residential and Non-Residential)
($ in thousands) Q1 2026 Q1 2025 $
Change (1) %
Change % of
Q1 2026
Operating
Expenses Real estate taxes $ 98,680 $ 95,910 $ 2,770 2.9 % 39.7 % On-site payroll 44,593 44,517 76 0.2 % 17.9 % Utilities 42,813 40,120 2,693 6.7 % 17.2 % Repairs and maintenance 32,435 30,243 2,192 7.2 % 13.1 % Insurance 9,994 9,568 426 4.5 % 4.0 % Leasing and advertising 3,534 2,924 610 20.8 % 1.4 % Other on-site operating expenses 16,509 16,339 170 1.0 % 6.7 % Total Same Store Operating Expenses (2) $ 248,558 $ 239,621 $ 8,937 3.7 % 100.0 %
(1) The quarter-over-quarter changes were primarily driven by the following factors: Real estate taxes – Increase due to escalation in rates and assessed values.
On-site payroll – Sub-inflationary growth due to the impact of various innovation initiatives and lower employee benefit costs.
Utilities – Increase primarily driven by higher commodity prices, particularly impacting electricity and gas.
Repairs and maintenance – Increase primarily driven by costs associated with the implementation of various resident technology initiatives (including bulk Wi-Fi programs), which is more than offset by a corresponding increase in same store revenues.
Insurance – Increase primarily driven by higher general liability premiums and property casualty losses, partially offset by lower property premiums.
Leasing and advertising – Increase primarily driven by higher interactive marketing/advertising costs and certain one-time broker fee costs related to Non-Residential leasing activity.
Other on-site operating expenses – Increase primarily due to higher association fees and other expenses. (2) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details.
Equity Residential
Debt Summary as of March 31, 2026
($ in thousands) Debt
Balances (1) % of Total Weighted
Average
Rates (1) Weighted
Average
Maturities
(years) Secured $ 1,590,859 19.1 % 3.68 % 5.7 Unsecured 6,748,647 80.9 % 3.80 % 6.5 Total $ 8,339,506 100.0 % 3.78 % 6.3 Fixed Rate Debt: Secured – Conventional $ 1,404,284 16.9 % 3.86 % 5.2 Unsecured – Public 6,000,230 71.9 % 3.79 % 7.3 Fixed Rate Debt 7,404,514 88.8 % 3.80 % 6.9 Floating Rate Debt: Secured – Tax Exempt 186,575 2.2 % 2.32 % 9.2 Unsecured – Revolving Credit Facility — — 4.40 % 4.7 Unsecured – Commercial Paper Program (2) 748,417 9.0 % 3.91 % — Floating Rate Debt 934,992 11.2 % 3.56 % 1.9 Total $ 8,339,506 100.0 % 3.78 % 6.3
(1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. (2) At March 31, 2026, the weighted average maturity of commercial paper outstanding was 14 days. The weighted average amount outstanding for the quarter ended March 31, 2026 was approximately $683.4 million. Note: The Company capitalized interest of approximately $2.6 million and $3.9 million during the quarters ended March 31, 2026 and 2025, respectively.
Equity Residential
Debt Maturity Schedule as of March 31, 2026
($ in thousands) Year Fixed
Rate Floating
Rate Total % of Total Weighted
Average Coupons
on Fixed
Rate Debt (1) Weighted
Average
Coupons on
Total Debt (1) 2026 $ 592,025 $ 756,920 (2) $ 1,348,945 16.1 % 3.58 % 3.87 % 2027 400,000 8,200 408,200 4.9 % 3.25 % 3.23 % 2028 900,000 9,000 909,000 10.8 % 3.79 % 3.78 % 2029 888,120 9,700 897,820 10.7 % 3.30 % 3.30 % 2030 1,148,462 10,800 1,159,262 13.8 % 2.53 % 2.53 % 2031 528,500 37,700 566,200 6.7 % 1.94 % 1.97 % 2032 500,000 26,100 526,100 6.3 % 4.95 % 4.84 % 2033 550,000 — 550,000 6.5 % 5.22 % 5.22 % 2034 600,000 — 600,000 7.1 % 4.65 % 4.65 % 2035 — 25,175 25,175 0.3 % — 1.65 % 2036+ 1,350,850 61,785 1,412,635 16.8 % 4.39 % 4.26 % Subtotal 7,457,957 945,380 8,403,337 100.0 % 3.72 % 3.72 % Deferred Financing Costs and Unamortized (Discount) (53,443 ) (10,388 ) (63,831 ) N/A N/A N/A Total $ 7,404,514 $ 934,992 $ 8,339,506 100.0 % 3.72 % 3.72 %
(1) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. (2) Includes $749.5 million in principal outstanding on the Company's Commercial Paper Program.
Equity Residential
Selected Unsecured Public Debt Covenants March 31, December 31, 2026 2025 Debt to Adjusted Total Assets (not to exceed 60%) 27.9% 27.4% Secured Debt to Adjusted Total Assets (not to exceed 40%) 6.1% 6.1% Consolidated Income Available for Debt Service to Maximum Annual Service Charges (must be at least 1.5 to 1) 5.60 5.77 Total Unencumbered Assets to Unsecured Debt (must be at least 125%) 466.1% 477.1%
Note: These selected covenants represent the most restrictive financial covenants relating to ERP Operating Limited Partnership's ("ERPOP") outstanding public debt securities. Equity Residential is the general partner of ERPOP.
Selected Credit Ratios March 31, December 31, 2026 2025 Total debt to Normalized EBITDAre 4.38x 4.32x Net debt to Normalized EBITDAre 4.35x 4.27x Unencumbered NOI as a % of total NOI 90.1% 90.3%
Note: See Normalized EBITDAre Reconciliations for detail.
Equity Residential
Capital Structure as of March 31, 2026
(Amounts in thousands except for share/unit and per share amounts) Secured Debt $ 1,590,859 19.1 % Unsecured Debt 6,748,647 80.9 % Total Debt 8,339,506 100.0 % 26.8 % Common Shares (includes Restricted Shares) 374,674,719 97.6 % Units (includes OP Units and Restricted Units) 9,325,548 2.4 % Total Shares and Units 384,000,267 100.0 % Common Share Price at March 31, 2026 $ 59.15 22,713,616 99.9 % Perpetual Preferred Equity (see below) 17,155 0.1 % Total Equity 22,730,771 100.0 % 73.2 % Total Market Capitalization $ 31,070,277 100.0 %
Perpetual Preferred Equity as of March 31, 2026
(Amounts in thousands except for share and per share amounts) Series Call Date Outstanding
Shares Liquidation
Value Annual
Dividend
Per Share Annual
Dividend
Amount Preferred Shares: 8.29% Series K 12/10/26 343,100 $ 17,155 $ 4.145 $ 1,422
Equity Residential
Common Share and Unit
Weighted Average Amounts Outstanding
Q1 2026 Q1 2025 Weighted Average Amounts Outstanding for Net Income Purposes: Common Shares - basic 375,642,927 379,207,994 Shares issuable from assumed conversion/vesting of: - OP Units 8,175,672 10,511,169 - long-term compensation shares/units 1,288,946 1,460,268 Total Common Shares and Units - diluted 385,107,545 391,179,431 Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes: Common Shares - basic 375,642,927 379,207,994 OP Units - basic 8,175,672 10,511,169 Total Common Shares and OP Units - basic 383,818,599 389,719,163 Shares issuable from assumed conversion/vesting of: - long-term compensation shares/units 1,288,946 1,460,268 Total Common Shares and Units - diluted 385,107,545 391,179,431 Period Ending Amounts Outstanding: Common Shares (includes Restricted Shares) 374,674,719 379,840,678 Units (includes OP Units and Restricted Units) 9,325,548 11,723,272 Total Shares and Units 384,000,267 391,563,950
Equity Residential
Partially Owned Properties as of March 31, 2026
(Amounts in thousands except for project/property and apartment unit amounts)
Partially Owned Properties Weighted
Average
Ownership
Percentage Total
Properties Total
Apartment
Units Q1 2026
NOI Q1 2026
Interest
Expense Total Debt CONSOLIDATED: Projects Under Development (1) (3) 95.0% — — $ 523 $ — $ — Operating properties (stabilized) 86.0% 12 2,656 16,406 255 28,344 Total Partially Owned Properties - Consolidated 12 2,656 16,929 255 28,344 UNCONSOLIDATED: Projects Under Development (2) (3) 95.0% — — 77 206 99,301 Operating properties (stabilized) 72.2% 3 1,016 5,460 2,520 212,499 Total Partially Owned Properties - Unconsolidated 3 1,016 5,537 2,726 311,800 Total Partially Owned Properties 15 3,672 $ 22,466 $ 2,981 $ 340,144
(1) The Company is currently developing one property, which is expected to add 440 apartment units upon completion. (2) The Company is currently developing two properties, which are expected to add 639 apartment units upon completion. (3) See Development and Lease-Up Projects for more information. Note: Partially owned consolidated and unconsolidated amounts are presented at 100% of the project/property. This schedule only includes those projects/properties that are partially owned at March 31, 2026.
Equity Residential
Development and Lease-Up Projects as of March 31, 2026
(Amounts in thousands except for project and apartment unit amounts)
Estimated/Actual Projects Location Ownership
Percentage No. of
Apartment
Units Total
Budgeted Capital
Cost Total
Book Value
to Date Total
Debt (1) Percentage
Completed Start
Date Initial
Occupancy Completion
Date Stabilization
Date Percentage
Leased / Occupied CONSOLIDATED: Projects Under Development: The Basin Wakefield, MA 95% 440 $ 232,172 $ 211,966 $ — 96% Q1 2024 Q3 2025 Q2 2026 Q2 2027 43% / 35% 173 Reservoir Canton, GA 100% 240 60,812 15,238 — 10% Q1 2026 Q3 2027 Q1 2028 Q4 2028 – / – Continuum Alpharetta, GA 100% 280 113,649 29,298 — 8% Q1 2026 Q3 2027 Q2 2028 Q4 2028 – / – Projects Under Development - Consolidated 960 406,633 256,502 — Projects Completed and Stabilized During the Quarter: Lorien (fka Laguna Clara II) Santa Clara, CA 100% 225 149,521 149,338 — 100% Q2 2022 Q1 2025 Q1 2025 Q1 2026 99% / 98% Projects Completed and Stabilized During the Quarter - Consolidated 225 149,521 149,338 — UNCONSOLIDATED: Projects Under Development: Modera Bridle Trails Kirkland, WA 95% 369 185,282 145,787 52,996 83% Q3 2024 Q3 2026 Q3 2026 Q1 2028 – / – Modera South Shore Marshfield, MA 95% 270 121,918 104,518 46,305 89% Q3 2024 Q3 2025 Q4 2026 Q2 2027 36% / 28% Projects Under Development - Unconsolidated 639 307,200 250,305 99,301 Total Development Projects - Consolidated 1,185 556,154 405,840 — Total Development Projects - Unconsolidated 639 307,200 250,305 99,301 Total Development Projects 1,824 $ 863,354 $ 656,145 $ 99,301
NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS Total Budgeted
Capital Cost Q1 2026
NOI Projects Under Development - Consolidated $ 406,633 $ 523 Projects Completed and Stabilized During the Quarter - Consolidated 149,521 1,705 Projects Under Development - Unconsolidated 307,200 77 $ 863,354 $ 2,305
(1) All unconsolidated projects are being partially funded with third party, project-specific construction loans, none of which are recourse to the Company.
Equity Residential
Residential Capital Expenditures to Real Estate
For the Quarter Ended March 31, 2026
(Amounts in thousands except for apartment unit and per apartment unit amounts)
Same Store
Properties Non-Same Store
Properties Total Consolidated
Properties Same Store Avg.
Per Apartment Unit Total Consolidated Apartment Units 78,885 5,310 84,195 Recurring Capital Expenditures $ 32,068 $ 3,512 $ 35,580 $ 407 NOI-Enhancing Expenditures: Renovation Expenditures 15,229 (1) 1,575 (3) 16,804 193 Other (2) 4,967 1,271 6,238 63 Total NOI-Enhancing Expenditures 20,196 2,846 23,042 256 Total Capital Expenditures to Real Estate (4) $ 52,264 $ 6,358 $ 58,622 $ 663
(1) Renovation Expenditures on 533 same store apartment units for the quarter ended March 31, 2026 approximated $29,000 per apartment unit renovated. (2) Includes sustainability, property-level technology and Accessory Dwelling Units (ADU) spend. (3) Includes expenditures for one property that has been removed from same store while undergoing major renovations requiring a significant number of apartment units to be vacated to accommodate the extensive planned improvements. The renovation is expected to continue through the fourth quarter of 2026 and is being paid for, in part, by funds from a replacement reserve account required by the ground lease arrangement. (4) See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. Note: Non-Residential Capital Expenditures to Real Estate were approximately $3.4 million for both Same Store Properties and Total Consolidated Properties.
Equity Residential Normalized EBITDAre Reconciliations (Amounts in thousands)
Trailing Twelve Months 2026 2025 March 31, 2026 December 31, 2025 Q1 Q4 Q3 Q2 Q1 Net income $ 980,252 $ 1,151,949 $ 93,101 $ 391,498 $ 296,868 $ 198,785 $ 264,798 Interest expense incurred, net 312,054 306,798 77,370 79,226 80,141 75,317 72,114 Amortization of deferred financing costs 8,769 8,768 2,145 2,399 2,122 2,103 2,144 Amortization of above/below market lease intangibles 4,610 4,610 1,152 1,152 1,153 1,153 1,152 Depreciation 1,001,150 1,010,400 247,496 258,108 254,657 240,889 256,746 Income and other tax expense (benefit) 1,585 1,585 422 361 395 407 422 EBITDA 2,308,420 2,484,110 421,686 732,744 635,336 518,654 597,376 Net (gain) loss on sales of real estate properties (472,204 ) (626,388 ) 32 (271,271 ) (142,685 ) (58,280 ) (154,152 ) Net (gain) loss on sales of unconsolidated entities - operating assets (2,817 ) (2,781 ) — (2,643 ) — (174 ) 36 EBITDAre 1,833,399 1,854,941 421,718 458,830 492,651 460,200 443,260 Write-off of pursuit costs (other expenses) 7,368 7,735 954 1,613 4,074 727 1,321 (Income) loss from investments in unconsolidated entities - operations 16,723 21,089 2,009 5,563 3,981 5,170 6,375 Net (gain) loss on sales of unconsolidated entities - non-operating assets 640 607 33 607 — — — Net (gain) loss on sales of land parcels 13 80 — — 2 11 67 Realized (gain) loss on investment securities (interest and other income) 11 51 — — 2 9 40 Unrealized (gain) loss on investment securities (interest and other income) (25,399 ) (25,399 ) — — (25,399 ) — — Insurance/litigation settlement or reserve income (interest and other income) (382 ) (199 ) (281 ) — — (101 ) (98 ) Insurance/litigation/environmental settlement or reserve expense (other expenses) (1) 83,583 48,668 36,627 17,950 25,857 3,149 1,712 Advocacy contributions (other expenses) 3,197 966 2,444 360 208 185 213 Employment tax refund (interest and other income) (16,867 ) (16,867 ) — — (16,867 ) — — Other 52 (69 ) 21 — 20 11 (100 ) Normalized EBITDAre $ 1,902,338 $ 1,891,603 $ 463,525 $ 484,923 $ 484,529 $ 469,361 $ 452,790 Balance Sheet Items: March 31, 2026 December 31, 2025 Total debt $ 8,339,506 $ 8,175,010 Cash and cash equivalents (34,677 ) (55,904 ) Mortgage principal reserves/sinking funds (35,593 ) (33,143 ) Net debt $ 8,269,236 $ 8,085,963
(1) Insurance/litigation/environmental settlement or reserve expense includes reserves relating to various legal proceedings being defended by the Company. Note: EBITDA, EBITDAre and Normalized EBITDAre do not include any adjustments for the Company’s share of partially owned unconsolidated entities due to the immaterial size of the Company’s partially owned unconsolidated portfolio.
Equity Residential Adjustments from FFO to Normalized FFO (Amounts in thousands)
Quarter Ended March 31, 2026 2025 Variance Impairment – non-operating real estate assets $ — $ — $ — Write-off of pursuit costs (other expenses) 954 1,321 (367 ) Write-off of unamortized deferred financing costs (interest expense) — 97 (97 ) Debt extinguishment and preferred share redemption (gains) losses — 97 (97 ) Net (gain) loss on sales of land parcels — 67 (67 ) (Income) loss from investments in unconsolidated entities ─ non-operating assets 416 331 85 Realized (gain) loss on investment securities (interest and other income) — 40 (40 ) Non-operating asset (gains) losses 416 438 (22 ) Insurance/litigation settlement or reserve income (interest and other income) (281 ) (98 ) (183 ) Insurance/litigation/environmental settlement or reserve expense (other expenses) (1) 36,627 1,712 34,915 Advocacy contributions (other expenses) 2,444 213 2,231 Other 21 (100 ) 121 Other miscellaneous items 38,811 1,727 37,084 Adjustments from FFO to Normalized FFO $ 40,181 $ 3,583 $ 36,598
(1) Insurance/litigation/environmental settlement or reserve expense includes reserves relating to various legal proceedings being defended by the Company. Note: See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.
Equity Residential
Normalized FFO Guidance and Assumptions The guidance/projections provided below are based on current expectations and are forward-looking. All guidance is given on a Normalized FFO basis. Therefore, certain items excluded from Normalized FFO, such as debt extinguishment costs/prepayment penalties and the write-off of pursuit costs, are not included in the estimates provided on this page. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.
Q2 2026 Revised Full Year 2026 Previous Full Year 2026 2026 Normalized FFO Guidance (per share diluted) Expected Normalized FFO Per Share $0.98 to $1.02 $4.02 to $4.14 $4.02 to $4.14 2026 Same Store Assumptions (includes Residential and Non-Residential) Physical Occupancy 96.4% 96.4% Revenue change 1.2% to 3.2% 1.2% to 3.2% Expense change 3.0% to 4.0% 3.0% to 4.0% NOI change (1) 0.5% to 2.5% 0.5% to 2.5% 2026 Transaction Assumptions Consolidated rental acquisitions N/A N/A Consolidated rental dispositions $165.0M N/A 2026 Debt Assumptions Weighted average debt outstanding $8.28B to $8.48B $8.33B to $8.53B Interest expense, net (on a Normalized FFO basis) $318.0M to $324.0M $321.0M to $327.0M Capitalized interest $6.3M to $8.3M $6.3M to $8.3M 2026 Capital Expenditures to Real Estate Assumptions for Residential Same Store Properties NOI-Enhancing Capital Expenditures for Residential Same Store Properties (2) $125.0M $125.0M Recurring Capital Expenditures for Residential Same Store Properties $185.0M $185.0M Capital Expenditures to Real Estate for Residential Same Store Properties $310.0M $310.0M 2026 Other Guidance Assumptions Property management expense $142.0M to $144.0M $142.0M to $144.0M General and administrative expense $59.0M to $64.0M $59.0M to $64.0M Income (loss) from investments in unconsolidated entities (on a Normalized FFO basis) (3) $1.0M to $5.0M $1.0M to $5.0M Debt offerings $500.0M to $1.0B $500.0M to $1.0B Weighted average Common Shares and Units - Diluted 384.2M 384.2M
(1) Approximately 20 basis point change in NOI percentage = $0.01 per share change in EPS/FFO per share/Normalized FFO per share. (2) During 2026, the Company expects to spend approximately $90.0 million for apartment unit Renovation Expenditures on approximately 2,900 Residential same store apartment units at an average cost of approximately $31,000 per apartment unit renovated. The remainder of the NOI-Enhancing spend includes other items, such as sustainability, property-level technology and ADU expenditures. (3) Income (loss) from investments in unconsolidated entities (on a Normalized FFO basis) primarily consists of our share of both Lease-Up NOI and interest expense, net that is no longer being capitalized from the recently completed unconsolidated development projects referenced on pages 20 and 21.
Equity Residential
Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms
(Amounts in thousands except per share and per apartment unit data)
(All per share data is diluted)
This Earnings Release and Supplemental Financial Information includes certain non-GAAP financial measures and other terms that management believes are helpful in understanding our business. The definitions and calculations of these non-GAAP financial measures and other terms may differ from the definitions and methodologies used by other real estate investment trusts ("REIT") and, accordingly, may not be comparable. These non-GAAP financial measures should not be considered as an alternative to net earnings or any other measurement of performance computed in accordance with accounting principles generally accepted in the United States ("GAAP") or as an alternative to cash flows from specific operating, investing or financing activities. Furthermore, these non-GAAP financial measures are not intended to be a measure of cash flow or liquidity.
Acquisition Capitalization Rate or Cap Rate – NOI that the Company anticipates receiving in the next 12 months (or the year two or three stabilized NOI for properties that are in lease-up at acquisition) less an estimate of property management costs/management fees allocated to the project (generally ranging from 3.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $100-$450 per apartment unit depending on the age and condition of the asset) divided by the gross purchase price of the asset. The weighted average Acquisition Cap Rate for acquired properties is weighted based on the projected NOI streams and the relative purchase price for each respective property.
Average Rental Rate – Total Residential rental revenues reflected on a straight-line basis in accordance with GAAP divided by the weighted average occupied apartment units for the reporting period presented.
Bad Debt, Net – Change in rental income due to bad debt write-offs and reserves, net of amounts collected on previously written-off or reserved accounts.
Blended Rate – The weighted average of New Lease Change and Renewal Rate Achieved.
Capital Expenditures to Real Estate:
Accessory Dwelling Units (ADU) – Includes costs to convert existing underutilized spaces of our properties into new apartment units.
NOI-Enhancing – Primarily includes Renovation Expenditures as well as sustainability, property-level technology and ADU expenditures that are intended to increase revenues or decrease expenses.
Recurring – Capital expenditures necessary to help preserve the value of and maintain the functionality of our apartment properties.
Renovation Expenditures – Apartment unit renovation costs (primarily kitchens and baths) designed to reposition these units for higher rental levels in their respective markets.
Debt Balances:
Commercial Paper Program – The Company may borrow up to a maximum of $1.5 billion under its Commercial Paper Program subject to market conditions. The notes bear interest at various floating rates.
Revolving Credit Facility – The Company’s $2.5 billion unsecured revolving credit facility matures December 3, 2030. The interest rate on advances under the facility will generally be SOFR plus a spread (currently 0.725%), or based on bids received from the lending group, and an annual facility fee (currently 0.125%). Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating. In addition, the Company limits its utilization of the facility in order to maintain liquidity to support its $1.5 billion Commercial Paper Program along with certain other obligations. The following table presents the availability on the Company’s unsecured revolving credit facility:
March 31, 2026 Unsecured revolving credit facility commitment $ 2,500,000 Commercial paper balance outstanding (749,520 ) Unsecured revolving credit facility balance outstanding — Other restricted amounts (3,464 ) Unsecured revolving credit facility availability $ 1,747,016
Debt Covenant Compliance – Our unsecured debt includes certain financial and operating covenants including, among other things, maintenance of certain financial ratios. These provisions are contained in the indentures applicable to each notes payable or the credit agreement for our line of credit. The Debt Covenant Compliance ratios that are provided show the Company's compliance with certain covenants governing our public unsecured debt. These covenants generally reflect our most restrictive financial covenants. The Company was in compliance with its unsecured debt covenants for all periods presented.
Development Yield – NOI that the Company anticipates receiving in the next 12 months following stabilization less an estimate of property management costs/management fees allocated to the project (generally ranging from 3.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $50-$150 per apartment unit depending on the type of asset) divided by the Total Budgeted Capital Cost of the asset. The weighted average Development Yield for development properties is weighted based on the projected NOI streams and the relative Total Budgeted Capital Cost for each respective property.
Disposition Yield – NOI that the Company anticipates giving up in the next 12 months less an estimate of property management costs/management fees allocated to the project (generally ranging from 3.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $250-$600 per apartment unit depending on the age and condition of the asset) divided by the gross sales price of the asset. The weighted average Disposition Yield for sold properties is weighted based on the projected NOI streams and the relative sales price for each respective property.
Earnings Per Share ("EPS") – Net income per share calculated in accordance with GAAP. 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.
EBITDA for Real Estate and Normalized EBITDA for Real Estate:
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre") – The National Association of Real Estate Investment Trusts ("Nareit") defines EBITDAre (September 2017 White Paper) as net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for gains and losses from sales of depreciated operating properties, impairment write-downs of depreciated operating properties, impairment write-downs of investments in unconsolidated entities caused by a decrease in value of depreciated operating properties within the joint venture and adjustments to reflect the Company’s share of EBITDAre of investments in unconsolidated entities.
The Company believes that EBITDAre is useful to investors, creditors and rating agencies as a supplemental measure of the Company’s ability to incur and service debt because it is a recognized measure of performance by the real estate industry, and by excluding gains or losses related to sales or impairment of depreciated operating properties, EBITDAre can help compare the Company’s credit strength between periods or as compared to different companies.
Normalized Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("Normalized EBITDAre") – Represents net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for non-comparable items. Normalized EBITDAre, total debt to Normalized EBITDAre and net debt to Normalized EBITDAre are important metrics in evaluating the credit strength of the Company and its ability to service its debt obligations. The Company believes that Normalized EBITDAre, total debt to Normalized EBITDAre, and net debt to Normalized EBITDAre are useful to investors, creditors and rating agencies because they allow investors to compare the Company’s credit strength to prior reporting periods and to other companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual credit quality.
Economic Gain (Loss) – Economic Gain (Loss) is calculated as the net gain (loss) on sales of real estate properties in accordance with GAAP, excluding accumulated depreciation. The Company generally considers Economic Gain (Loss) to be an appropriate supplemental measure to net gain (loss) on sales of real estate properties in accordance with GAAP because it is one indication of the gross value created by the Company's acquisition, development, renovation, management and ultimate sale of a property and because it helps investors to understand the relationship between the cash proceeds from a sale and the cash invested in the sold property. The following table presents a reconciliation of net gain (loss) on sales of real estate properties in accordance with GAAP to Economic Gain (Loss):
Quarter Ended March 31, 2026 Net Gain (Loss) on Sales of Real Estate Properties $ (32 ) Accumulated Depreciation Gain — Economic Gain (Loss) $ (32 )
FFO and Normalized FFO:
Funds From Operations ("FFO") – Nareit defines FFO (December 2018 White 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 and amortization related to real estate. Adjustments for partially owned consolidated and unconsolidated partnerships and 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 expected operating performance when compared to expected EPS.
The 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’s real estate between periods or as compared to different companies.
Normalized Funds From Operations ("Normalized FFO" or "NFFO") – Normalized FFO begins with FFO and excludes:
the impact of any expenses relating to non-operating real estate asset impairment; pursuit cost write-offs; gains and losses from early debt extinguishment and preferred share redemptions; gains and losses from non-operating assets; and other miscellaneous items.
Expected Normalized FFO per share is calculated on a basis consistent with actual Normalized FFO per share and is considered an appropriate supplemental measure of expected operating performance when compared to expected EPS.
The Company believes that Normalized FFO and Normalized 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 allow investors to compare the Company's operating performance to its performance in prior reporting periods and to the operating performance of other real estate companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company's actual operating results.
FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units do not represent net income, net income available to Common Shares or net cash flows from operating activities in accordance with GAAP. Therefore, FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units should not be exclusively considered as alternatives to net income, net income available to Common Shares or net cash flows from operating activities as determined by GAAP or as a measure of liquidity. The Company's calculation of FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units may differ from other real estate companies due to, among other items, variations in cost capitalization policies for capital expenditures and, accordingly, may not be comparable to such other real estate companies.
FFO available to Common Shares and Units and Normalized FFO available to Common Shares and Units are calculated on a basis consistent with net income available to Common Shares and reflects adjustments to net income for preferred distributions and premiums on redemption of preferred shares in accordance with GAAP. The equity positions of various individuals and entities that contributed their properties to the Operating Partnership in exchange for OP Units are collectively referred to as the "Noncontrolling Interests – Operating Partnership". Subject to certain restrictions, the Noncontrolling Interests – Operating Partnership may exchange their OP Units for Common Shares on a one-for-one basis.
The following table presents reconciliations of EPS to FFO per share and Normalized FFO per share for Consolidated Statements of Funds From Operations and Normalized Funds From Operations.
Actual Actual Expected Expected Q1 2026 Q1 2025 Q2 2026 2026 Per Share Per Share Per Share Per Share EPS – Diluted $ 0.24 $ 0.67 $0.28 to $0.32 $1.28 to $1.40 Depreciation expense 0.65 0.66 0.64 2.56 Net (gain) loss on sales — (0.39 ) 0.05 0.05 Impairment – operating real estate assets — — — — FFO per share – Diluted 0.89 0.94 0.97 to 1.01 3.89 to 4.01 Adjustments (1): Impairment – non-operating real estate assets — — — — Write-off of pursuit costs — — — 0.01 Debt extinguishment and preferred share redemption (gains) losses — — — — Non-operating asset (gains) losses — — — — Other miscellaneous items 0.10 0.01 0.01 0.12 Normalized FFO per share – Diluted $ 0.99 $ 0.95 $0.98 to $1.02 $4.02 to $4.14
(1) See Adjustments from FFO to Normalized FFO for additional detail.
Lease-Up NOI – Represents NOI for development properties: (i) in various stages of lease-up; and (ii) where lease-up has been completed but the properties were not stabilized (defined as having achieved 90% Physical Occupancy for three consecutive months) for all of the current and comparable periods presented.
Leasing Concessions – Reflects upfront discounts on both new move-in and renewal leases on a straight-line basis.
Net Operating Income ("NOI") – NOI is the Company’s primary financial measure for evaluating each of its apartment properties. NOI is defined as rental income less direct property operating expenses (including real estate taxes and insurance). The Company believes that NOI is helpful to investors as a supplemental measure of its operating performance because it is a direct measure of the actual operating results of the Company's apartment properties. NOI does not include an allocation of property management expenses either in the current or comparable periods. Rental income for all leases and operating expense for ground leases (for both same store and non-same store properties) are reflected on a straight-line basis in accordance with GAAP for the current and comparable periods.
The following tables present reconciliations of net income per the consolidated statements of operations to NOI, along with rental income, operating expenses and NOI per the consolidated statements of operations allocated between same store and non-same store/other results and further allocated between Residential same store and Non-Residential same store results (see Same Store Results):
Quarter Ended March 31, 2026 2025 Net income $ 93,101 $ 264,798 Adjustments: Property management 35,141 35,816 General and administrative 16,865 18,255 Depreciation 247,496 256,746 Net (gain) loss on sales of real estate properties 32 (154,152 ) Interest and other income (2,238 ) (1,692 ) Other expenses 40,788 4,156 Interest: Expense incurred, net 77,370 72,114 Amortization of deferred financing costs 2,145 2,144 Income and other tax expense (benefit) 422 422 (Income) loss from investments in unconsolidated entities 2,042 6,411 Net (gain) loss on sales of land parcels — 67 Total NOI $ 513,164 $ 505,085
Quarter Ended March 31, Rental income: 2026 2025 Residential same store $ 719,667 $ 703,612 Non-Residential same store 26,811 27,016 Total same store 746,478 730,628 Non-same store/other 33,368 30,182 Total rental income 779,846 760,810 Operating expenses: Residential same store 240,114 231,903 Non-Residential same store 8,444 7,718 Total same store 248,558 239,621 Non-same store/other 18,124 16,104 Total operating expenses 266,682 255,725 NOI: Residential same store 479,553 471,709 Non-Residential same store 18,367 19,298 Total same store 497,920 491,007 Non-same store/other 15,244 14,078 Total NOI $ 513,164 $ 505,085
New Lease Change – The net effective change in rent (inclusive of Leasing Concessions) for a lease with a new or transferring resident compared to the rent for the prior lease of the identical apartment unit, regardless of lease term.
Non-Residential – Consists of revenues and expenses from retail and public parking garage operations.
Non-Same Store Properties – For annual comparisons, primarily includes all properties acquired during 2025 and 2026, plus any properties in lease-up and not stabilized as of January 1, 2025. Unless otherwise noted, includes both Residential and Non-Residential operations for these properties.
Percentage of Residents Renewing – Leases renewed expressed as a percentage of total renewal offers extended during the reporting period.
Physical Occupancy – The weighted average occupied apartment units for the reporting period divided by the average of total apartment units available for rent for the reporting period.
Pricing Trend – Weighted average of 12-month base rent including amenity amount less Leasing Concessions on 12-month signed leases for the reporting period.
Renewal Rate Achieved – The net effective change in rent (inclusive of Leasing Concessions) for a new lease on an apartment unit where the lease has been renewed as compared to the rent for the prior lease of the identical apartment unit, regardless of lease term.
Residential – Consists of multifamily apartment revenues and expenses.
Same Store Operating Expenses:
Insurance – Includes third-party insurance premiums, broker fees and other insurance-related procurement fees along with an allocation of estimated uninsured losses.
On-site Payroll – Includes payroll and related expenses for on-site personnel including property managers, leasing consultants and maintenance staff.
Other On-site Operating Expenses – Includes ground lease costs and administrative costs such as office supplies, telephone and data charges and association and business licensing fees.
Repairs and Maintenance – Includes general maintenance costs, apartment unit turnover costs including interior painting, routine landscaping, security, exterminating, fire protection, snow removal, elevator, roof and parking lot repairs and other miscellaneous building repair and maintenance costs.
Utilities – Represents gross expenses prior to any recoveries under the Resident Utility Billing System ("RUBS"). Recoveries are reflected in rental income.
Same Store Properties – For annual comparisons, primarily includes all properties acquired or completed that are stabilized prior to January 1, 2025, less properties subsequently sold. Properties are included in Same Store when they are stabilized for all of the current and comparable periods presented. Unless otherwise noted, includes both Residential and Non-Residential operations for these properties.
Same Store Residential Revenues – Revenues from our Residential Same Store Properties only presented on a GAAP basis which reflects the impact of Leasing Concessions on a straight-line basis.
Same Store Residential Revenues with Leasing Concessions on a cash basis is presented in Same Store Results and is considered by the Company to be a supplemental measure to Same Store Residential Revenues in conformity with GAAP to help investors evaluate the impact of both current and historical Leasing Concessions on GAAP-based Same Store Residential Revenues and to more readily enable comparisons to revenue as reported by other companies. Same Store Residential Revenues with Leasing Concessions on a cash basis reflects the impact of Leasing Concessions used in the period and allows an investor to understand the historical trend in cash Leasing Concessions.
% of Stabilized Budgeted NOI – Represents original budgeted 2026 NOI for stabilized properties and projected annual NOI at stabilization (defined as having achieved 90% Physical Occupancy for three consecutive months) for properties that are in lease-up.
Total Budgeted Capital Cost – Estimated remaining cost for projects under development and/or developed plus all capitalized costs incurred to date, including land acquisition costs, construction costs, capitalized real estate taxes and insurance, capitalized interest and loan fees, permits, professional fees, allocated development overhead and other regulatory fees, plus any estimates of costs remaining to be funded for all projects, all in accordance with GAAP. Amounts for partially owned consolidated and unconsolidated properties are presented at 100% of the project.
Total Market Capitalization – The aggregate of the market value of the Company’s outstanding common shares, including restricted shares, the market value of the Company’s operating partnership units outstanding, including restricted units (based on the market value of the Company’s common shares) and the outstanding principal balance of debt. The Company believes this is a useful measure of a real estate operating company’s long-term liquidity and balance sheet strength, because it shows an approximate relationship between a company’s total debt and the current total market value of its assets based on the current price at which the Company’s common shares trade. However, because this measure of leverage changes with fluctuations in the Company’s share price, which occur regularly, this measure may change even when the Company’s earnings, interest and debt levels remain stable.
Traffic – Consists of an expression of interest in an apartment by completing an in-person tour, self-guided tour or virtual tour that may result in an application to lease.
Transaction Accretion (Dilution) – Represents the spread between the Acquisition Cap Rate and the Disposition Yield.
Turnover – Total Residential move-outs (including inter-property and intra-property transfers) divided by total Residential apartment units. Retention rate is the opposite of Turnover.
Unencumbered NOI % – Represents NOI generated by consolidated real estate assets unencumbered by outstanding secured debt as a percentage of total NOI generated by all of the Company's consolidated real estate assets.
Weighted Average Coupons – Contractual interest rate for each debt instrument weighted by principal balances as of March 31, 2026. In case of debt for which fair value hedges are in place, the rate payable under the corresponding derivatives is used in lieu of the contractual interest rate.
Weighted Average Rates – Interest expense for each debt instrument for the quarter ended March 31, 2026 weighted by its average principal balance for the same period. Interest expense includes amortization of premiums, discounts and other comprehensive income on debt and related derivative instruments. In case of debt for which derivatives are in place, the income or expense recognized under the corresponding derivatives is included in the total interest expense for the period.
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Contacts
Marty McKenna
312-928-1901
mmckenna@eqr.com
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