Equity Residential Reports 23.3% Increase in Net Income for Fiscal Year 2024

Equity Residential (EQR) reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with net income rising to $1.07 billion, compared to $868.5 million in 2023, marking a 23.3% increase. The company’s diluted earnings per share also improved, reaching $2.72, up from $2.20 in the previous year. Total revenue from rental income increased by 3.7% to $2.98 billion, driven by a combination of higher rental rates and improved occupancy levels across its properties.

The company experienced notable changes in its operational metrics, with same-store rental income rising by 3.0% to $2.82 billion, while same-store operating expenses increased by 2.9%. The overall physical occupancy rate for the company’s properties remained strong at 96.0%. EQR's total net operating income (NOI) for the year was approximately $2.02 billion, reflecting a 3.6% increase from the previous year. The company’s strategic focus on high-demand markets, particularly in the East Coast, contributed to these positive results.

In terms of strategic developments, EQR expanded its portfolio by acquiring 18 consolidated rental properties for approximately $1.6 billion in 2024, while disposing of 13 properties for net proceeds of about $975.6 million. The company also invested $129.8 million in development projects during the year. EQR's total assets increased to $20.83 billion, up from $20.03 billion in 2023, with a significant portion of this growth attributed to acquisitions and ongoing development projects.

EQR's employee headcount remained stable at approximately 2,500, reflecting the company's commitment to maintaining a strong operational workforce. The company continues to leverage technology to enhance customer engagement and operational efficiency, which has been a key factor in its ability to maintain high occupancy rates and manage costs effectively. The company’s liquidity position is robust, with approximately $2.0 billion in readily available liquidity, allowing it to meet future obligations and capitalize on growth opportunities.

Looking ahead, EQR expressed optimism about its long-term prospects, citing favorable market conditions, including elevated single-family home ownership costs and positive household formation trends. The company anticipates continued demand for rental properties in its established and expansion markets, positioning it well for future growth. EQR's management remains focused on optimizing its portfolio and enhancing shareholder value through disciplined capital allocation and strategic investments.