Equity Residential (EQR) Gives Update on Certain Same-store Operating Trends

Equity Residential (NYSE:EQR) is one of the Best Housing Stocks to Buy According to Hedge Funds. On September 2, the company gave an update on certain same-store operating trends in its business. Its same-store revenue growth is on track within its guidance range. It is finishing its primary leasing season with high physical occupancy and robust retention. Equity Residential (NYSE:EQR) expects to produce same-store revenue growth of 2.6% – 3.2% and physical occupancy of 96.4% for FY 2025. Additionally, it has reaffirmed its Q3 2025 blended rate growth guidance of 2.2% – 2.8%.

Elsewhere, Equity Residential (NYSE:EQR)’s Q2 2025 revenue growth was helped by the continued strong operating fundamentals throughout most of its markets. For Q2 2025 versus Q2 2024, its same store revenues rose 2.7%, same store expenses increased 3.7% and same store Net Operating Income (NOI) went up by 2.3%. During Q2 2025, it acquired a portfolio of 8 properties, consisting of 2,064 apartment units, located in suburban Atlanta for an aggregate purchase price of ~$533.8 million.

Baron Funds, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“Equity Residential (NYSE:EQR) is one of the largest U.S. apartment REITs with 80,000 high-quality apartment units concentrated in coastal markets with strong barriers to entry, compelling resident income/demographics, and high-cost home ownership. The company maintains a strong and liquid balance sheet.

It is valued at a 6.1% implied capitalization rate representing a discount to private market transactions in the high 4% to 5% capitalization range. At its public market implied valuation of only $410,000 per apartment, the shares are valued at an approximate 20% discount to private market values and a much larger discount to replacement cost.”

While we acknowledge the potential of EQR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.