- Reddit Upgraded, Spotify Downgraded: Updated Rankings on Top Blue-Chip Stocks
May 4, 2026
During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Stock Grader recommendations for 123 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
This Week’s Ratings Changes:
Upgraded: Strong to Very Strong
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade AM Antero Midstream Corp. A C A DAR Darling Ingredients Inc A B A ET Energy Transfer LP A C A ETR Entergy Corporation A C A FTAI FTAI Aviation Ltd. A C A GOOGL Alphabet Inc. Class A A B A IMO Imperial Oil Limited A C A PAA Plains All American Pipeline, L.P. A C A POWL Powell Industries, Inc. A B A RIO Rio Tinto plc Sponsored ADR A C A SANM Sanmina Corporation A B A TEVA Teva Pharmaceutical Industries Limited Sponsored ADR A B A TTE TotalEnergies SE A B A VTR Ventas, Inc. A C A
Downgraded: Very Strong to Strong
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade AEM Agnico Eagle Mines Limited A B B APG APi Group Corporation A C B ATI ATI Inc. A B B AU Anglogold Ashanti PLC A C B EQT EQT Corporation B B B KLAC KLA Corporation A C B RGC Regencell Bioscience Holdings Ltd. A C B VIV Telefonica Brasil SA Sponsored ADR A B B WPM Wheaton Precious Metals Corp B B B
Upgraded: Neutral to Strong
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade BEN Franklin Resources, Inc. B B B DDOG Datadog, Inc. Class A B C B FMX Fomento Economico Mexicano SAB de CV Sponsored ADR Class B B B B GD General Dynamics Corporation B C B ILMN Illumina, Inc. B C B LIN Linde plc B C B LLY Eli Lilly and Company C B B LMT Lockheed Martin Corporation B C B NTRA Natera, Inc. B C B O Realty Income Corporation B C B PKX POSCO Holdings Inc. Sponsored ADR B C B RDDT Reddit, Inc. Class A C B B ROKU Roku, Inc. Class A B B B TFII TFI International Inc. B C B TXT Textron Inc. B C B
Downgraded: Strong to Neutral
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade AWK American Water Works Company, Inc. B D C BALL Ball Corporation C C C BCH Banco de Chile Sponsored ADR B C C BIP Brookfield Infrastructure Partners L.P. B D C BSBR Banco Santander (Brasil) S.A. Sponsored ADR C B C CEG Constellation Energy Corporation B D C CHT Chunghwa Telecom Co., Ltd Sponsored ADR C C C CINF Cincinnati Financial Corporation C B C CVNA Carvana Co. Class A C B C DLR Digital Realty Trust, Inc. C B C DLTR Dollar Tree, Inc. C B C DOV Dover Corporation C C C EXC Exelon Corporation B C C FUTU Futu Holdings Ltd. Sponsored ADR Class A C B C HLT Hilton Worldwide Holdings Inc. B C C IHG InterContinental Hotels Group PLC Sponsored ADR C C C KNX Knight-Swift Transportation Holdings Inc. Class A B D C MAR Marriott International, Inc. Class A B D C ONTO Onto Innovation, Inc. B D C REGN Regeneron Pharmaceuticals, Inc. C C C RGLD Royal Gold, Inc. B C C SPG Simon Property Group, Inc. C B C TRV Travelers Companies, Inc. C B C WM Waste Management, Inc. C C C
Upgraded: Weak to Neutral
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade AFRM Affirm Holdings, Inc. Class A D B C AXP American Express Company D C C BLK BlackRock, Inc. D C C CNC Centene Corporation C B C EG Everest Group, Ltd. D C C F Ford Motor Company D B C IEX IDEX Corporation C C C MDLZ Mondelez International, Inc. Class A D C C OMC Omnicom Group Inc C C C PAG Penske Automotive Group, Inc. C C C PSA Public Storage D C C PSKY Paramount Skydance Corporation Class B C D C PSO Pearson PLC Sponsored ADR D C C QCOM QUALCOMM Incorporated C B C RCL Royal Caribbean Group D C C SBUX Starbucks Corporation C B C TROW T. Rowe Price Group, Inc. C C C UL Unilever PLC Sponsored ADR D C C UNH UnitedHealth Group Incorporated C C C UNM Unum Group D C C XYZ Block, Inc. Class A C C C
Downgraded: Neutral to Weak
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade ALLE Allegion Public Limited Company D C D APTV Aptiv PLC D C D DB Deutsche Bank Aktiengesellschaft D C D DHI D.R. Horton, Inc. D C D ECL Ecolab Inc. D C D FTV Fortive Corp. D C D HBAN Huntington Bancshares Incorporated D C D HLN Haleon PLC Sponsored ADR D C D HOOD Robinhood Markets, Inc. Class A D C D ICE Intercontinental Exchange, Inc. D B D MSCI MSCI Inc. Class A D C D PFGC Performance Food Group Co D C D PHG Koninklijke Philips N.V. Sponsored ADR D B D PHM PulteGroup, Inc. D D D SPOT Spotify Technology SA F B D SUI Sun Communities, Inc. D D D VRTX Vertex Pharmaceuticals Incorporated D C D WY Weyerhaeuser Company D B D
Upgraded: Very Weak to Weak
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade AVB AvalonBay Communities, Inc. F C D CRBG Corebridge Financial, Inc. F C D CSGP CoStar Group, Inc. F B D DEO Diageo plc Sponsored ADR F C D FICO Fair Isaac Corporation F C D KHC Kraft Heinz Company F D D PAYX Paychex, Inc. F C D TEAM Atlassian Corp Class A F B D
Downgraded: Weak to Very Weak
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade BR Broadridge Financial Solutions, Inc. F C F CDW CDW Corporation F C F CHKP Check Point Software Technologies Ltd. F C F CTSH Cognizant Technology Solutions Corporation Class A F C F EQR Equity Residential F D F GDDY GoDaddy, Inc. Class A F C F GPN Global Payments Inc. F D F HD Home Depot, Inc. F C F MKL Markel Group Inc. F D F NOW ServiceNow, Inc. F C F NVR NVR, Inc. F D F PGR Progressive Corporation F C F SYK Stryker Corporation F C F UBER Uber Technologies, Inc. F C F
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Story Continues
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Editor, Market 360
The post Reddit Upgraded, Spotify Downgraded: Updated Rankings on Top Blue-Chip Stocks appeared first on InvestorPlace.
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- Real estate stocks bounce back to gains in April
May 2, 2026
[single word reit (real estate investment trust) on yellow color background]
May Lim/iStock via Getty Images
Real estate stocks bounced back to gains in April after recording a loss for the month of March [https://seekingalpha.com/news/4572518-real-estate-stocks-snap-monthly-winning-streak-in-march].
So far in 2026, the sector is strongly in the positive territory.
April saw the broader markets deliver positive returns on the back of a stronger-than-expected March jobs report, a rise in nonfarm payrolls, some ceasefire hopes in the Iran war during the second and third weeks, a strong earnings season, and positive economic news.
The Federal Open Market Committee kept its policy rate unchanged [https://seekingalpha.com/news/4584039-fomcs-hammack-logan-think-forward-guidance-should-not-have-implied-easing-bias-at-this-time] at 3.50%-3.75% for a third straight meeting, but forward guidance implied an easing bias.
The benchmark U.S. 10-year Treasury yield (US10Y [https://seekingalpha.com/symbol/US10Y]) closed the month largely flat.
Mortgage rates fell [https://seekingalpha.com/news/4578809-mortgage-rates-fall-for-third-straight-week] for three straight weeks in April, while mortgage demand was stable.
The S&P 500 Real Estate Index Sector (SP500-60 [https://seekingalpha.com/symbol/SP500-60]) increased 8.61% month-over-month in April to 282.37 points, while the accompanying State Street Real Estate Select Sector SPDR ETF (XLRE [https://seekingalpha.com/symbol/XLRE]) was up 8.55% to $44.32.
In April, the Dow Jones REIT Indx Equity REIT Total Return Index (REIT:IND [https://seekingalpha.com/symbol/REIT:IND]) added 9.04%, while the FTSE Nareit All Equity REITs index advanced 8.86%.
WEEKLY WINNERS & LOSERS
Among largecap gainers, Iron Mountain (IRM [https://seekingalpha.com/symbol/IRM]) topped the list, advancing 9.62% W/W to close at $127.19.
The document storage and data center REIT's Q1 results [https://seekingalpha.com/news/4582611-iron-mountain-raises-guidance-after-q1-earnings-beat-fueled-by-growth-in-digital-data-centers] exceeded its expectations, fueled by growth across its businesses, and the company boosted 2026 guidance.
AvalonBay Communities (AVB [https://seekingalpha.com/symbol/AVB]) followed with a 6.42% addition to $183.45. The apartment REIT benefited after its Q1 earnings [https://seekingalpha.com/news/4580263-avalonbay-communities-ffo-of-2_83-beats-by-0_03] beat analyst estimates, and a media report said the company held exploratory talks [https://seekingalpha.com/news/4582590-avalonbay-equity-residential-weigh-megamerger---report] about merging with Equity Residential (EQR [https://seekingalpha.com/symbol/EQR]).
Jones Lang LaSalle (JLL [https://seekingalpha.com/symbol/JLL]) (-6.89% W/W to $315.24) led the losers in the category even as the real estate services provider posted a Q1 [https://seekingalpha.com/news/4582702-jones-lang-lasalle-non-gaap-eps-of-3_43-beats-by-0_42-revenue-of-6_4b-beats-by-400m] top- and bottom-line beat.
CoStar Group (CSGP [https://seekingalpha.com/symbol/CSGP]) (-4.72% W/W to $34.72) and CBRE Group (CBRE [https://seekingalpha.com/symbol/CBRE]) (-4.37% W/W to $141.81) followed. The week saw CBRE price [https://seekingalpha.com/news/4580362-cbre-group-prices-750m-senior-notes] a $750M offering of 5.250% senior notes due 2036 and CoStar post [https://seekingalpha.com/news/4581021-costar-group-non-gaap-eps-of-0_23-beats-by-0_05-revenue-of-897m-in-line] mixed quarterly earnings.
For the midcap gainers, OUTFRONT Media (OUT [https://seekingalpha.com/symbol/OUT]) (+5.63% W/W to $31.71) and Kilroy Realty (KRC [https://seekingalpha.com/symbol/KRC]) (+5.52% W/W to $33.64) topped the list. Kilroy Realty was gaining on the back of a quarterly earnings beat [https://seekingalpha.com/news/4580251-kilroy-realty-ffo-of-0_91-beats-by-0_03-revenue-of-270_1m-beats-by-4_45m].
The St. Joe Company (JOE [https://seekingalpha.com/symbol/JOE]) (-13.05% W/W to $61.74) topped the losers. The company posted Q1 earnings [https://seekingalpha.com/news/4582099-st-joe-gaap-eps-of-0_24-revenue-of-99_1m] this week.
Alexandria Real Estate Equities (ARE [https://seekingalpha.com/symbol/ARE]) followed with a 12.68% retreat to $41.39 amid lower first-quarter earnings [https://seekingalpha.com/news/4580290-alexandria-real-estate-equities-trades-lower-as-potential-tenant-wind-downs-hit-q1-earnings] on the back of potential tenant wind-downs.
For smallcap stocks, RE/MAX Holdings (RMAX [https://seekingalpha.com/symbol/RMAX]) (+34.92% W/W to $10.78) led the gainers. The stock gained as Real Brokerage (REAX [https://seekingalpha.com/symbol/REAX]) confirmed [https://seekingalpha.com/news/4579870-real-brokerage-confirms-remax-acquisition-for-enterprise-value-of-880m] the acquisition of RE/MAX for an enterprise value of ~$880M.
Two Harbors Investment (TWO [https://seekingalpha.com/symbol/TWO]) followed with a 14.00% gain to $12.54. The week saw the company post its Q1 earnings [https://seekingalpha.com/news/4581088-two-harbors-investment-ead-of-034] and announce [https://seekingalpha.com/news/4581159-two-harbors-agrees-to-crosscountrys-increased-offer-of-11_30-share] an amended merger agreement with CrossCountry Mortgage.
Adamas Trust (ADAM [https://seekingalpha.com/symbol/ADAM]) (+11.82% W/W to $8.89) was a notable gainer on the back of its Q1 earnings [https://seekingalpha.com/news/4582980-adamas-trust-stock-surges-after-q1-earnings-beat-and-book-value-rises] that beat the consensus by a wide margin, helped by gains from derivatives.
Ironically, REAX topped the losers, retreating 20.52% to $2.13.
Hotel101 Global Holdings (HBNB [https://seekingalpha.com/symbol/HBNB]) was also a significant decliner, shedding 10.83% to close at $6.01.
[S&P, Nareit]
Percentage-wise price change across real estate indices
MORE ON REAL ESTATE
* Office CRE: A Fragile Equilibrium In A Weakening Market [https://seekingalpha.com/article/4896091-office-cre-a-fragile-equilibrium-in-a-weakening-market]
* Manufactured Housing: The Wide Moat Hidden In Plain Sight [https://seekingalpha.com/article/4895941-manufactured-housing-the-wide-moat-hidden-in-plain-sight]
* The State Of REITs: April 2026 Edition [https://seekingalpha.com/article/4892545-the-state-of-reits-april-2026-edition]
* Mid-to-mega-cap REIT shorts hit extremes in April: 5 most & least shorted stocks [https://seekingalpha.com/news/4584214-mid-to-mega-cap-reit-shorts-hit-extremes-in-april-xlre-tops-sp-500-ytd]
* LRHC tops REIT bear's list under $2B market cap; SACH least shorted in April [https://seekingalpha.com/news/4584112-lrhc-tops-reit-bears-list-under-2b-market-cap-sach-least-shorted-in-april]
- CPT Q1 FFO Beats Estimates Despite Lower Property Revenues
May 1, 2026
Camden Property Trust CPT reported first-quarter 2026 core funds from operations (FFO) per share of $1.70, beating the Zacks Consensus Estimate of $1.67 by 1.8%. Core FFO dipped 1.2% year over year from $1.72.
Property revenues were $388.8 million, down 0.5% year over year and modestly below the consensus estimate of $390.7 million (a -0.5% surprise). Same-property occupancy averaged 95.1% for the quarter.
Camden's Same-Property Fundamentals Stay Pressured
Operating trends continued to show modest top-line traction and cost pressure. Same-property revenues rose 0.2% year over year, while same-property expenses increased 1.9%, resulting in a 0.7% decline in same-property net operating income (NOI).
Leasing spreads remained soft on new move-ins, while renewals provided partial support. Effective new lease rates were down 5.2% versus expiring leases, and effective renewal rates increased 2.9%, leading to effective blended lease rates of negative 1.4% for the quarter.
CPT's Development and Transaction Activity Remain Active
Leasing continued at Camden Village District in Raleigh, NC, where construction is complete, and the community was 72% leased as of April 29, 2026. Beyond that, the company had three communities under construction totaling 1,162 apartment homes at an estimated total cost of $492.0 million.
Transaction activity extended beyond development. During the quarter, Camden began marketing 11 operating communities in California for sale and disposed of Camden Valley Park, a 516-home community in Irving, TX, for about $77.0 million. Subsequent to quarter-end, the company acquired Camden Alpharetta (269 homes) and Camden at Lake Nona (288 homes) for a combined $171.3 million.
Camden Details Funding Position, Highlights Buybacks
CPT ended the quarter with approximately $881.9 million of liquidity, comprising $40.7 million of cash and cash equivalents and $841.2 million of availability under its unsecured credit facility and commercial paper program. It also had about $176.6 million left to fund within its wholly owned development pipeline.
Leverage increased, with net debt to annualized adjusted EBITDAre at 4.7X compared with 4.1X a year earlier. Interest expense climbed to $37.4 million from $33.8 million in the prior-year quarter. CPT also issued $600 million of senior unsecured notes due 2036 during the quarter and extended the maturity of its $1.2 billion revolving credit facility to March 2030.
Camden continued to lean on share repurchases. During the quarter, it repurchased 2.63 million shares at an average price of $105.88 per share for a total of $278.8 million. Repurchases remained active after quarter-end, with 1.43 million shares bought back at an average price of $100.78 for $144.1 million. So far in the year, the company has repurchased 4.06 million shares for $422.9 million and has $297.8 million remaining under its stock repurchase program.
Story Continues
CPT Updates Guidance, Maintains Same-Property Assumptions
For second-quarter 2026, Camden guided core FFO per share in the band of $1.65-$1.69. The Zacks Consensus Estimate presently stands at $1.66.
For full-year 2026, core FFO per share guidance remained in the $6.60-$6.90 range. The Zacks Consensus Estimate of $6.74 lies within the guided range.
CPT maintained its same-property growth assumptions. Full-year same-property revenue growth is expected to range from a decline of 0.25% to an increase of 1.75%, while expenses are projected to rise 2.25% to 3.75%. Same-property NOI is forecast between a 2.50% decline and a 1.50% increase.
Camden recorded a $53.0 million litigation settlement-related charge in the quarter after signing a post-quarter term sheet, but said that the settlement payments will not affect its 2026 core FFO or core AFFO. As such, the company noted that its 2026 core FFO guidance excludes roughly 65 cents per share of non-core charges for legal costs and settlements and expensed transaction pursuit costs.
CPT's Zacks Rank
Camden currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Camden Property Trust Price, Consensus and EPS SurpriseCamden Property Trust Price, Consensus and EPS Surprise
Camden Property Trust price-consensus-eps-surprise-chart | Camden Property Trust Quote
Performance of Other Residential REITs
AvalonBay Communities, Inc. AVB reported first-quarter 2026 core FFO per share of $2.83, beating the Zacks Consensus Estimate of $2.80 by 1.1%. Total revenues came in at $770.3 million, up 3.3% year over year and essentially in line with the consensus mark of $770.6 million.
AvalonBay’s same-store economic occupancy held at 96.1%, underscoring steady demand heading into the peak leasing season. The quarter benefited from incremental development NOI and commercial NOI. However, higher interest expenses undermined the performance of AvalonBay to an extent.
Equity Residential EQR reported first-quarter 2026 normalized FFO of 99 cents per share, up 4.2% year over year and ahead of the Zacks Consensus Estimate of 95 cents by 4.2%. Rental income grew 2.5% year over year to $779.8 million but came in 0.3% below the consensus mark of $782.6 million.
Equity Residential’s operating fundamentals were supported by steady occupancy and improving coastal-market momentum. Same-store performance remained strong, with revenue growth outpacing prior-quarter momentum and occupancy staying firm. Equity Residential’s management emphasized strength in San Francisco and New York, citing solid demand from higher-earning renters and moderating new supply across its markets.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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This article originally published on Zacks Investment Research (zacks.com).
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- CPT Q1 FFO Beats Estimates Despite Lower Property Revenues
May 1, 2026 · zacks.com
Camden Property Trust tops Q1 core FFO estimates despite lower revenues, as buybacks, development and asset deals steer its 2026 outlook.
- Sector Update: Financial Stocks Advance Late Afternoon
Apr 30, 2026
Financial stocks were higher late Thursday afternoon, with the NYSE Financial Index rising 1.3% and
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- Equity Residential (EQR) Q1 2026 Earnings Call Highlights: Strong Market Performance and ...
Apr 30, 2026
This article first appeared on GuruFocus.
Same-Store Revenue: Strong performance driven by San Francisco and New York. Occupancy Rate: Portfolio more than 96% occupied. Share Repurchase: $220 million repurchased in Q1, totaling $500 million since August 2025. Net Effective Prices: Increased just over 4% since January 1. Concession Use: Decreased by about 21% across the portfolio compared to Q1 last year. Blended Rate Growth: 1.5% in Q1, a 130 basis point sequential improvement from Q4 2025. Renewal Rate Increase: Achieved 4.7% renewal rate increase with 61% resident retention. Household Income for New Move-Ins: Increased, with rent income ratios falling to 19%.
Warning! GuruFocus has detected 2 Warning Sign with CBU. Is EQR fairly valued? Test your thesis with our free DCF calculator.
Release Date: April 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Equity Residential (NYSE:EQR) reported strong performance in key markets like San Francisco and New York, driven by high demand and low new supply. The company anticipates a 35% decrease in new apartment deliveries in 2026 compared to 2025, which is expected to positively impact future performance. EQR's higher-earning customer demographic shows solid financial health with rising incomes and lower delinquency rates. The company achieved a record low turnover rate and strong renewal rates, indicating customer satisfaction and stability. EQR repurchased $220 million of its common shares in the first quarter, totaling $500 million since August 2025, reflecting confidence in its stock value.
Negative Points
The job market remains mixed, with recent job cut announcements in big tech firms, creating uncertainty for future demand. Boston and Seattle markets experienced a slower-than-expected start, impacting overall performance. Los Angeles faces uncertainty in the entertainment industry, affecting market growth prospects. The company did not acquire or sell any assets in the first quarter, indicating potential challenges in executing its transaction strategy. Equity Residential (NYSE:EQR) faces regulatory challenges, particularly in Massachusetts, which could impact future development and investment decisions.
Q & A Highlights
Q: Are you seeing any signs of an earlier peak in pricing similar to last year, or does the seasonality look more normal? A: Michael Manelis, COO, noted that the setup this year is different, with low levels of new supply. The strength in retention gives confidence that they will maintain their position through the peak leasing season, with limited new competitive supply positioning the portfolio well for the back half of the year.
Story Continues
Q: What are your expectations for renewal rates and blended spreads for the year? A: Michael Manelis, COO, stated that renewal quotes are just over 6% for the next three months, with a high degree of confidence in achieving around a 5% renewal rate increase. The full-year blended rate growth expectation remains at 1.5% to 3%, with renewals slightly better than expected and new leases a bit later than anticipated.
Q: Have you considered leaning more into the disposition program to take advantage of the private market? A: Mark Parrell, CEO, mentioned they are open to more buybacks and like the match of selling lower-growth assets and buying stock. They are also open to using the balance sheet for buybacks but prefer dispositions. Robert Garechana, CFO, added that interest in multifamily assets remains robust, and they continue to execute on dispositions.
Q: Can you comment on the decline in concession usage by markets and where new leases might inflect sooner? A: Michael Manelis, COO, explained that concession use is expected to remain elevated in newer markets and possibly in DC and Seattle for the second quarter. They anticipate a 20% reduction in concessions for the full year compared to 2025, with a more significant decline expected in the second half of the year.
Q: How do you view the sustainability of the strength in the Bay Area driven by AI? A: Mark Parrell, CEO, believes the AI boom and affordability in San Francisco are likely to continue. Rents have recently moved above pre-COVID levels, and nominal wages have increased significantly since 2019. The ecosystem of universities and venture capital supports San Francisco as an innovation center, suggesting persistent strength.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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- Equity Residential (EQR) Q1 2026 Earnings Call Transcript
Apr 29, 2026 · seekingalpha.com
Equity Residential (EQR) Q1 2026 Earnings Call Transcript
- San Francisco’s AI boom boosted EQR in Q1
Apr 29, 2026
This story was originally published on Multifamily Dive. To receive daily news and insights, subscribe to our free daily Multifamily Dive newsletter.
For the second straight day, an apartment REIT reported results reflecting growing optimism that a multifamily recovery will take shape throughout 2026.
After a fairly optimistic commentary from AvalonBay Communities, Equity Residential executives noted that a burnoff in apartment supply was pushing down concessions across their portfolio in their first-quarter earnings call on Wednesday. Conditions should continue to improve as the year progresses.
“As we turn the corner into the second half of the year, given the decline in supply, we expect concessions to materially decline, especially relative to the increases that we saw in the second half of last year,” EQR Chief Operating Officer Michael Manelis said on a Q1 2026 earnings call.
Manelis said he would model a 20% decrease relative to EQR's second-quarter 2025 rate, which could help set the stage for a strong second half. He expects renewal rate increases to remain around 5% in the coming months, with new leases roughly flat.
“Right now, renewals are doing a little bit better than what we thought,” Manelis said. “New lease is a little bit lighter than what we thought. So we love the setup heading into the peak leasing season. We love this supply picture in the back half of the year. But at this point, it's still probably too early in the year for us to change that full-year outlook for the blends.”
Still, not all markets are the same. Here is a breakdown of what EQR sees in its coastal regions and expansion into Sun Belt markets.
Strength in San Francisco and New York
The clear Q1 overperformers in EQR’s portfolio were San Francisco and the New York City metro, marking a clear contrast from five years ago, when the two large coastal cities struggled after the pandemic.
“The strength in key gateway markets like San Francisco and New York, which both exceeded our already high expectations for the quarter, are offsetting a slower-than-expected start in Boston and Seattle,” Manelis said.
Together, San Francisco and New York constitute about 30% of EQR’s NOI and have the best supply-and-demand outlook in the country, according to Manelis. “Our urban exposure in these two markets is particularly unique to Equity Residential, and should be a relative strength for us versus our peers,” Manelis said.
Of the two markets, San Francisco is performing best, driven by the artificial intelligence job boom downtown and very little new supply.
Story Continues
“It isn't just the actual creators of AI [creating jobs],” said CEO Mark Parrell on the call. “It's all the systems that sit on top of it. A lot of this employment is small groups of people building on top of AI systems — various helpful applications of sorts. So, I think there’s room to run here.”
New York City’s rental performance is powered by a lack of new competition, according to Manelis.
“New York also continues to post excellent performance with demand outpacing supply, and has almost no new competitive deliveries coming online in 2026,” Manelis said. “The large financial institutions continue to produce record profits, and employment in the market is very stable.”
Struggles in Boston, Seattle and Washington, D.C.
Though concessions are falling overall, they’re still lingering in some metros. On the coasts, Manelis sees elevated usage in Washington, D.C., and Seattle.
While the Washington, D.C., area is performing in line with EQR’s expectations, pricing power is “less than normal,” according to Manelis. With deliveries falling off 65% this year, there is hope for improvement. “The real question here is whether we will see any improvement in consumer confidence in this market,” he said.
BY THE NUMBERS
Category Q1 YOY Change Operating revenues $746.5 million 2.2% Net operating income $497.9 million 1.4% Operating expenses $248.6 million 3.7% FFO per share $0.89 5.3% Average rental rate $3,154 2.2% Occupancy rate 96.5% 10 bps
SOURCE: EQR
Seattle traditionally follows San Francisco's cyclical trends by about a year, which leads to hope that it will tighten as 2026 progresses, according to Manelis. However, the city is not experiencing the benefits of the AI job boom seen in San Francisco and is trending below EQR’s expectations.
“Today, the market is still working to absorb the new deliveries from 2025,” Manelis said. “Concession use is down 22% in the quarter, but demand is still price-sensitive, causing this market to lag normal seasonal improvements.”
In Boston, difficult weather conditions weighed on Q1 performance, and a pullback in life science funding is hampering the Cambridge, Massachusetts, area. “This is a very seasonal market, and it's still early,” Manelis said. “Overall, we still think that the city will outperform the suburbs based on the location of the 2026 new deliveries.”
Los Angeles is performing in line with EQR’s tempered expectations, though there are signs of improvement downtown as the city prepares for the World Cup and Olympics. “Continued uncertainty in the entertainment business is an overhang on the market, and we have still not yet seen any catalyst on the job front that will drive growth in the near term,” Manelis said.
Expansion markets
EQR doesn’t have the same stake in the high-supply Sun Belt markets as some of its REIT peers do, with holdings in only Dallas, Denver, Atlanta and Austin, Texas. But it's still seeing issues from new competition.
“We need to see concessions go down,” Parrell said. “That's what we are seeing, in fact, in Atlanta.”
Manelis said conditions are improving in both Atlanta and Dallas, with concessions coming down. “Atlanta is performing the best, and if the current trends continue, this market should deliver slightly positive, same-store revenue growth for the year,” he said.
In Denver, Manelis noted strengthening occupancy and initial signs that the market has bottomed out. Other markets show similar signs of recovery.
“With a sizable decline in new starts, improving operating conditions and current competitive pressure easing, our newer markets, excluding Austin, Texas, all have the right setup for recovery through the balance of this year,” Manelis said.
However, for these expansion markets to fully recover, employment has to outperform the coasts. “We just need more job growth there than anywhere else, because we have more supply there than anywhere else,” Parrell said.
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- EQR's Q1 FFO Beats Estimates on Coastal Demand Strength
Apr 29, 2026
Equity Residential EQR reported first-quarter 2026 normalized FFO of 99 cents per share, up 4.2% year over year and ahead of the Zacks Consensus Estimate of 95 cents by 4.2%. Rental income grew 2.5% year over year to $779.8 million but came in 0.3% below the consensus mark of $782.6 million.
Operating fundamentals were supported by steady occupancy and improving coastal-market momentum. Same-store performance remained strong, with revenue growth outpacing prior-quarter momentum and occupancy staying firm. Management emphasized strength in San Francisco and New York, citing solid demand from higher-earning renters and moderating new supply across its markets.
Same-store revenues climbed 2.2%, and same-store NOI increased 1.4% year over year. Same-store physical occupancy held firm at 96.5%, while resident turnover fell to 7.8%, the lowest level in the company’s history.
Equity Residential Sees Improvement in Leasing Trends
Leasing indicators pointed to sequential improvement heading into the peak leasing season. Blended rate growth in the quarter was 1.5%, reflecting a 130-basis-point sequential improvement from the fourth quarter of 2025, while April’s preliminary blended rate moved higher to 3% as renewal pricing stayed firm and new-lease pressure moderated.
Concessions also continued to ease. On a same-store cash basis, leasing concessions in the quarter were down 21% from the prior-year period, signaling a healthier competitive backdrop in several key markets as new supply trends soften. At the portfolio level, resident renewals remained steady at 61.6% for the quarter, while new-lease change was negative, underscoring the continued importance of renewal pricing in overall revenue realization.
EQR Faces Expense Pressure
Expense lines were mixed. Property and maintenance costs rose to $149.7 million from $144.0 million, while real estate taxes and insurance increased to $117.0 million from $111.8 million. Interest expense incurred, net, climbed to $77.4 million from $72.1 million.
EQR's Balance Sheet Stays Conservative, Leverage Steady
Balance sheet positioning stayed conservative, with total debt largely unsecured and leverage metrics remaining steady, supporting flexibility as the company moves through the 2026 leasing cycle.
Total debt was $8.34 billion, weighted to unsecured borrowings (about 81% of total), with a 3.78% weighted average rate and a 6.3-year weighted average maturity. Cash and cash equivalents were $34.7 million at quarter-end, and the company also held $104.4 million of restricted deposits.
Leverage remained steady, with net debt to normalized EBITDAre at 4.35X as of March 31, 2026. EQR’s unsecured debt covenant metrics were also comfortably inside limits, including debt-to-adjusted total assets of 27.9% (vs. a 60% cap) and secured debt-to-adjusted total assets of 6.1% (vs. a 40% cap). Unencumbered NOI represented 90.1% of total NOI as of March 31, 2026, underscoring the company’s flexibility within its largely unsecured capital structure.
Story Continues
EQR Steps Up Shareholder Returns
Capital allocation remained a notable highlight. During the quarter, the company repurchased and retired about 3.5 million common shares for roughly $219.4 million, funded with excess disposition proceeds from 2025 sale activity. The company also increased its annual common dividend to $2.81 per share during the quarter.
EQR Sets Q2 FFO Outlook, Reaffirms Full-Year View
Management issued second-quarter 2026 guidance that implies seasonal improvement. The company expects normalized FFO per share of 98 cents to $1.02, with the quarter-to-quarter normalized FFO improvement by a 3-cent per share contribution from residential same-store NOI, partially offset by net interest and corporate overhead. The Zacks Consensus Estimate is currently pegged at $1.02.
For full-year 2026, EQR reaffirmed normalized FFO per share guidance of $4.02-$4.14. The Zacks Consensus Estimate is currently pegged at $4.07. Within its same-store framework, the company expects revenue growth of 1.2%-3.2%, expense growth of 3%-4% and NOI growth of 0.5%-2.5%, alongside a 96.4% physical-occupancy assumption and normalized interest expense of $318-$324 million.
EQR’s Zacks Rank
Equity Residential currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Equity Residential Price, Consensus and EPS SurpriseEquity Residential Price, Consensus and EPS Surprise
Equity Residential price-consensus-eps-surprise-chart | Equity Residential Quote
Performance of Other Residential REITs
AvalonBay Communities, Inc. AVB reported first-quarter 2026 core FFO per share of $2.83, beating the Zacks Consensus Estimate of $2.80 by 1.1%. Total revenues came in at $770.3 million, up 3.3% year over year and essentially in line with the consensus mark of $770.6 million.
AvalonBay’s same-store economic occupancy held at 96.1%, underscoring steady demand heading into the peak leasing season. The quarter benefited from incremental development NOI and commercial NOI. However, higher interest expenses undermined the performance of AvalonBay to an extent.
Essex Property Trust, Inc. ESS reported first-quarter 2026 core FFO per diluted share of $4.06, beating the Zacks Consensus Estimate of $3.96 by 2.5%. The figure improved 2.3% from $3.97 in the year-ago quarter. Essex Property Trust’s total revenues were $484.8 million, up 4.3% year over year and ahead of the consensus mark of $481.4 million by 0.7%. Same-property NOI increased 4.1% from the year-ago quarter, reflecting solid property-level momentum.
Essex Property Trust’s management noted that core FFO per share exceeded the midpoint of the company’s prior guidance for the quarter by 11 cents. Of that outperformance, 8 cents was attributed to favorable same-property NOI, with additional help from co-investments.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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- ESS Q1 FFO Beats Estimates on Strong Same-Property NOI
Apr 29, 2026
Essex Property Trust, Inc. ESS reported first-quarter 2026 core funds from operations (FFO) per diluted share of $4.06, beating the Zacks Consensus Estimate of $3.96 by 2.5%. The figure improved 2.3% from $3.97 in the year-ago quarter.
Total revenues were $484.8 million, up 4.3% year over year and ahead of the consensus mark of $481.4 million by 0.7%. Same-property net operating income (NOI) increased 4.1% from the year-ago quarter, reflecting solid property-level momentum.
Management noted that core FFO per share exceeded the midpoint of the company’s prior guidance for the quarter by 11 cents. Of that outperformance, 8 cents was attributed to favorable same-property NOI, with additional help from co-investments.
ESS Delivers Broad-Based Same-Property Momentum
Same-property strength was a clear driver of the quarterly performance. The company reported a 2.9% year-over-year increase in same-property revenues, supported by improving fundamentals across its West Coast footprint.
Northern California led the regional growth profile, with same-property revenues up 3.9% year over year, while Southern California and the Seattle Metro posted increases of 2.2% and 2.3%, respectively. On a sequential basis, the same-property portfolio generated 0.7% revenue growth, reflecting continued stabilization in demand and pricing.
ESS Sees Sequential Improvement in Rent Drivers
The quarter’s same-property revenue growth was driven primarily by scheduled rents, which increased 2.2% year over year. Other income added another 0.5% tailwind, while delinquency and vacancy were modestly favorable.
Sequentially, scheduled rents increased 0.3%, while vacancy and cash concessions were each a 0.2% positive factor. The company’s same-property financial occupancy ended the quarter at 96.5%, up 20 basis points from a year ago, with occupancies of 96.1% in Southern California, 96.9% in Northern California and 96.6% in Seattle.
ESS' Expense Profile Reflects Higher Interest and G&A
Expense items were mixed. Net interest expense totaled $64.0 million, up from $61.5 million in the year-ago quarter, while general and administrative expense increased to $20.0 million from $16.3 million. At the property level, operating expenses rose to $141.3 million from $138.6 million, led by higher utilities costs, partially offset by lower real estate taxes.
Essex Property Maintains Ample Liquidity and Credit Metrics
Essex Property ended the quarter with more than $1.7 billion of immediately available liquidity, supported by undrawn capacity on unsecured credit facilities as well as cash and marketable securities. Cash and cash equivalents totaled $47.4 million, and marketable securities were $96.5 million at quarter-end.
Balance sheet leverage metrics remained within stated covenant levels. Total debt, net, was $6.81 billion, and debt to total assets stood at 34%. Credit ratings were Baa1 from Moody’s and BBB+ from S&P, both with stable outlooks, underscoring ongoing access to the unsecured debt markets.
Story Continues
Essex Property Highlights Shareholder Returns
Essex Property continued to lean into capital returns alongside operating execution. During the quarter, the company announced an increase in its dividend by 0.8% to an annual distribution of $10.36 per common share, extending its streak of consecutive annual dividend increases to 32 years.
Share repurchases were also notable. Year to date through April 27, 2026, the company repurchased $61.9 million of common stock, including commissions, at an average price per share of $243.76. As of the same date, remaining authorization under the repurchase plan was $240.8 million.
ESS Reaffirms 2026 Outlook After Q1 Outperformance
ESS introduced second-quarter 2026 core FFO guidance of $3.92-$4.04 per diluted share, with a midpoint of $3.98. The Zacks Consensus Estimate is pegged at $4.06.
For full-year 2026, the company reaffirmed its core FFO guidance range of $15.69-$16.19 per share, alongside its same-property portfolio expectations for revenue growth of 1.70% to 3.10%, operating expense growth of 2.50% to 3.50% and NOI growth of 0.80% to 3.40%. The Zacks Consensus Estimate for full-year 2026 core FFO per share currently stands at $16.03.
ESS’ Zacks Rank
Essex Property currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Essex Property Trust, Inc. Price, Consensus and EPS SurpriseEssex Property Trust, Inc. Price, Consensus and EPS Surprise
Essex Property Trust, Inc. price-consensus-eps-surprise-chart | Essex Property Trust, Inc. Quote
Performance of Other Residential REITs
AvalonBay Communities, Inc. AVB reported first-quarter 2026 core funds from operations (FFO) per share of $2.83, beating the Zacks Consensus Estimate of $2.80 by 1.1%. Total revenues came in at $770.3 million, up 3.3% year over year and essentially in line with the consensus mark of $770.6 million.
AvalonBay’s same-store economic occupancy held at 96.1%, underscoring steady demand heading into the peak leasing season. The quarter benefited from incremental development NOI and commercial NOI. However, higher interest expenses undermined the performance of AvalonBay to an extent.
Equity Residential EQR reported first-quarter 2026 normalized FFO of 99 cents per share, up 4.2% year over year and ahead of the Zacks Consensus Estimate of 95 cents by 4.2%. Rental income grew 2.5% year over year to $779.8 million but came in 0.3% below the consensus mark of $782.6 million.
Equity Residential’s operating fundamentals were supported by steady occupancy and improving coastal-market momentum. Same-store performance remained strong, with revenue growth outpacing prior-quarter momentum and occupancy staying firm. Equity Residential’s management emphasized strength in San Francisco and New York, citing solid demand from higher-earning renters and moderating new supply across its markets.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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AvalonBay Communities, Inc. (AVB) : Free Stock Analysis Report
Equity Residential (EQR) : Free Stock Analysis Report
Essex Property Trust, Inc. (ESS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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