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Equity Residential, a Chicago-based real estate investment trust, reported higher third-quarter funds from operations (FFO) of USD 1.05 per share, up from USD 0.99 a year earlier, driven by strong rental demand and limited housing supply in key U.S. markets. Quarterly revenue reached USD 782.4 million, slightly above analyst estimates. CEO Mark Parrell highlighted that low new housing supply, stable employment, and rising incomes are supporting long-term rental market strength, particularly in coastal regions. The company's results reflect steady growth and operational resilience in the multifamily sector, with Equity Residential well positioned to benefit from ongoing urban rentership and demographic trends.
Equity Residential, a Chicago, Illinois-headquartered real estate investment trust that focuses on acquiring, developing, and managing multifamily residential properties across the United States, reported an increase in its third-quarter funds from operations earlier this week. The growth was attributed to strong rental demand and a comparatively lower housing supply in its major markets. Advertisement
The company's chief executive officer, Mark Parrell, noted that the business outlook remained positive due to the low levels of housing supply anticipated over the coming years, particularly in the Coastal markets. He added that favourable cost and social trends were supporting the rental market and that the tenant base continued to enjoy stable employment and rising incomes.
On a diluted basis, the REIT's funds from operations stood at USD 1.05 per share for the quarter, compared with USD 0.99 per share in the corresponding period last year. Quarterly revenue reached USD 782.4 million, surpassing analyst projections of USD 781 million, based on data from LSEG. Following the announcement, the company's shares recorded a slight rise in after-hours trading.
Equity Residential's latest quarterly performance underscored the strength of rental housing demand across its core markets, supported by low supply levels and steady tenant incomes. The company's ability to exceed revenue expectations demonstrated operational resilience within the multifamily sector. With the management maintaining an optimistic outlook for the coming years, the REIT appears well positioned to benefit from continued urban rentership trends and favourable demographic shifts in its target regions.
Source - Reuters
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