Morningstar Rating
Stock XNYS Rating as of
$72.16 −0.46(0.63%)
View Full ChartAs of Delayed Price Closed
Company Report
Company Report
US REIT Sector Offers Relatively Stable Internal Growth
Kevin Brown
The REIT sector in the US offers many companies that should see relatively stable cashflow growth over the next several years. While the pandemic hurt REIT valuations in 2020, the recovery of fundamentals across most sectors combined with low interest rates led to strong total returns in 2021 and early 2022. However, despite fundamentals continuing to perform well over the past three years with many reaching historical levels of net operating income growth, the REIT sector underperformed the broader equity markets in 2023 and into the first half of 2024. We believe that is due to the sector’s negative correlation with interest rates, as income-oriented investors rotate out of the sector, higher rates lower the value REITs can create with external growth, and property valuations fall in line with higher rates. However, interest rates have fallen since the end of July, leading to a rally for the REIT sector. Still, we still view many of companies in the US REIT sector as being undervalued as the companies should continue to produce solid long-term growth.
Price vs Fair Value
Price vs Fair Value
EQR is trading at a 528% premium.
Price
$72.16
Fair Value
$14.00
Uncertainty
Medium
- 1-Star Price
- $286.00
- 5-Star Price
- $28.00
- Economic Moat
- Bhmqy
- Capital Allocation
- Fzbqczsby
Bulls Say, Bears Say
Bulls Say, Bears Say
Bulls
Equity Residential's portfolio of high quality assets should see relatively consistent levels of demand long term from high-income earners and will likely see just a small hit to fundamentals during the current pandemic as most residents have not experienced job losses.
Bears
The pandemic has made many millennials consider alternatives to urban apartments, including suburban apartments and single-family homeownership. This demographic has put off many major adult milestones but may finally be making the shift toward the suburbs.
News
News
- Equity Residential Declares Third Quarter Dividends
- Equity Residential to Participate in Bank of America 2024 Global Real Estate Conference
- Equity Residential Provides Operating Update
- Equity Residential to Acquire $1 Billion Apartment Portfolio from Blackstone Real Estate
- Equity Residential Reports Second Quarter 2024 Results
- Harbor Steps Staircase Plaza Grand Reopening
Trading Information
Trading Information
- Previous Close Price
- $72.62
- Day Range
$71.77–73.04
- 52-Week Range
$52.57–78.84
- Bid/Ask
- $69.55/$77.85
- Market Cap
- $27.36 Bil
- Volume/Avg
- 1.1 Mil/1.8 Mil
Key Statistics
Key Statistics
- Price/Earnings (Normalized)
- 44.91
- Price/Sales
- 9.67
- Dividend Yield (Trailing)
- 3.72%
- Dividend Yield (Forward)
- 3.74%
- Total Yield
- 3.90%
Company Profile
Company Profile
Equity Residential owns a portfolio of 299 apartment communities with around 80,000 units and is developing three additional properties with 977 units. The company focuses on owning large, high-quality properties in the urban and suburban submarkets of Southern California, San Francisco, Washington, D.C., New York, Seattle, and Boston.
- Sector
- Real Estate
- Industry
- REIT - Residential
- Stock Style Box
- Mid Core
- Total Number of Employees
- 2,400
- Website
- https://www.equityapartments.com
Competitors
Competitors
- Essex Property Trust Inc ESS
- AvalonBay Communities Inc AVB
Valuation
Valuation
| Metric | EQR | ESS | AVB |
|---|---|---|---|
Price/Earnings (Normalized) | 44.91 | 49.67 | 42.96 |
Price/Book Value | 2.50 | 3.34 | 2.63 |
Price/Sales | 9.67 | 10.71 | 10.86 |
Price/Cash Flow | 18.36 | 17.88 | 19.51 |
Price/Earnings
EQR
ESS
AVB
Financial Strength
Financial Strength
| Metric | EQR | ESS | AVB |
|---|---|---|---|
Quick Ratio | 0.06 | 0.75 | 0.77 |
Current Ratio | 0.23 | 0.77 | 1.09 |
Interest Coverage | 5.32 | 3.72 | 5.05 |
Quick Ratio
EQR
ESS
AVB
Profitability
Profitability
| Metric | EQR | ESS | AVB |
|---|---|---|---|
Return on Assets (Normalized) | 6.06% | 3.84% | 4.38% |
Return on Equity (Normalized) | 10.99% | 8.70% | 7.73% |
Return on Invested Capital (Normalized) | 7.56% | 4.88% | 5.59% |
Return on Assets
EQR
ESS
AVB
REIT - Residential Industry Comparables
REIT - Residential Industry Comparables
| 1-Day Chart | Name | Price | Morningstar Rating for Stocks | Capital Allocation | Economic Moat | Market Cap |
|---|---|---|---|---|---|---|
| AvalonBay Communities Inc AVB | Thtqlrmxlh | Sshl | $30.8 Bil | |||
| Invitation Homes Inc INVH | Wvjfmsy | Gztkf | $20.5 Bil | |||
| Essex Property Trust Inc ESS | Bbvqspmwz | Zjb | $18.3 Bil | |||
| Mid-America Apartment Communities Inc MAA | — | Ctpt | $17.8 Bil | |||
| Sun Communities Inc SUI | Bhwkftkvj | Bqgwm | $16.1 Bil | |||
| UDR Inc UDR | — | Kwxk | $14.3 Bil | |||
| American Homes 4 Rent Class A AMH | — | Npm | $13.7 Bil | |||
| Camden Property Trust CPT | — | Cntp | $12.7 Bil | |||
| Equity Lifestyle Properties Inc ELS | Czqpzgxq | Crvpp | $12.6 Bil |
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