Equity Residential Faces Lease Growth Concerns Despite Guidance Increase

Equity Residential (NYSE:EQR) is one of the 12 Best REIT Stocks to Buy Right Now.

Analysts maintain a Hold rating following the mixed signals and lease growth concerns from the Q2 earnings report.

Headquartered in Chicago, Equity Residential (NYSE:EQR) is a REIT with a special focus on acquiring, developing, and managing high‑quality apartment communities in major U.S. urban markets such as New York, Boston, San Francisco, Seattle, and Southern California. Operating through a blend of suburban rental platforms, the company owns approximately 84,000 units across 311 properties.

Equity Residential (NYSE:EQR) released its results for Q2 2025 on August 4, 2025. The normalized FFO per share, reported by the company, met the consensus estimates of the analysts. Additionally, the company raised its 2025 normalized FFO guidance with a positive revision in guidance for same-store revenue and occupancy rates.

However, the overall rent growth alongside the new lease growth expectations, especially in regions like the West Coast, did not align with the market projections. Following the release of this report, prominent analysts like Wells Fargo and Morgan Stanley maintained their Hold rating on the stock.

Even so, Equity Residential (NYSE:EQR) remains a favored pick among institutional investors, with 36 hedge funds holding positions, signaling consistent confidence in its stable multifamily residential portfolio.

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