Equity Residential ( NYSE: EQR ) stock climbed 3.2% in Tuesday after-hours trading after the apartment REIT's Q3 earnings matched the average analyst estimate.
Q3 normalized FFO per share of $0.92, in line with the consensus estimate, increased from $0.89 in Q2 and from $0.77 in Q3 2021.
"The substantial embedded growth in our rent roll and our financially resilient and highly employable resident base leaves us well positioned to deliver above average results in 2023 despite likely macroeconomic turbulence," said President and CEO Mark J. Parrell.
Equity Residential ( EQR ) now expects full-year 2022 normalized FFO per share of $3.52-$3.54 (vs. $3.54 consensus), narrower than its previous range of $3.48-$3.58.
For Q4, it expects normalized FFO of $0.94-$0.96, vs. $0.96 consensus.
Full-year same-store revenue growth is expected to be ~10.6%, compared with its prior range of 10.0%-11.0%. Same-store net operating income is expected to increase 14.25% Y/Y vs. prior range of 13.75%-14.75%.
Equity Residential's ( EQR ) Q3 rental income rose to $695.1M from $687.0M in the prior quarter and from $623.2M in the year-ago period.
Q3 total expenses, at $477.6M, fell from $485.0M in the prior quarter and rose from $465.6M in the year-ago quarter.
Q2 same-store net operating income rose 16.2% Y/Y and 0.9% Q/Q, same-store physical occupancy was 96.5% vs. 96.7% in Q2. Occupancy dropped to 96.2% in October.
Same-store residential blended lease rate rose 11.3% Y.Y in Q3 vs. 14.8% in Q2.
Conference call on Oct. 26 at 11:00 AM ET.
Earlier, Equity Residential ( EQR ) FFO of $0.92 in-line, revenue of $695.1M misses by $2.58M
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Equity Residential Q3 earnings match estimate, narrows 2022 guidance range