Second Quarter 2026
Filed Jul 22, 2026Equity Residential Reports Second Quarter 2026 Results Raises Full Year Operating Guidance
Same store revenue increased 1.9% and same store NOI increased 1.4% year over year, while diluted Normalized FFO per share increased to $1.02 from $0.99. The Company raised the midpoint of same store revenue and NOI guidance, although GAAP diluted EPS declined to $0.30 from $0.50, primarily due to lower property sale gains and other adjustment items.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Rental incomeGAAP | $785.0M | – | – |
| Total expensesGAAP | $566.2M | – | – |
| Net incomeGAAP | $117.7M | – | – |
| Net income available to Common SharesGAAP | $113.8M | – | – |
| Earnings per share, dilutedGAAP | $0.30 | – | (40.0 %) |
| Earnings per share, basicGAAP | $0.30 | – | – |
| FFO available to Common Shares and Unitsnon-GAAP | $382.5M | – | – |
| FFO per share and Unit, dilutednon-GAAP | $1.00 | – | 2.0 % |
| Normalized FFO available to Common Shares and Unitsnon-GAAP | $393.4M | – | – |
| Normalized FFO per share and Unit, dilutednon-GAAP | $1.02 | – | 3.0 % |
| Total NOInon-GAAP | $520.0M | – | – |
| Same store revenuesother | $749.4M | 0.8 % | 1.9 % |
| Same store expensesother | $239.9M | (2.9 %) | 3.0 % |
| Same store NOInon-GAAP | $509.5M | 2.6 % | 1.4 % |
| Same store physical occupancyother | 96.2% | – | – |
| Same store average rental rateother | $3.19M | 1.3 % | 2.5 % |
| Same store turnoverother | 11.7 % | 4.0 % | – |
| Net gain (loss) on sales of real estate propertiesGAAP | −$16.74M | – | – |
| Interest expense incurred, netGAAP | −$82.46M | – | – |
| Property and maintenance expenseGAAP | $142.8M | – | – |
| Real estate taxes and insurance expenseGAAP | $122.3M | – | – |
| DepreciationGAAP | $246.4M | – | – |
| Normalized EBITDArenon-GAAP | $478.3M | – | – |
| Total debtother | $8.26B | – | – |
| Cash and cash equivalentsGAAP | $36.41M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Residential same storeLease rates contributed 1.8 %, Bad Debt, Net contributed 0.2 %, and Other contributed 0.5 % to the year-over-year change in Same Store Residential Revenues- comparable period; Vacancy gain (loss) reduced it by (0.3 %) and Leasing Concessions reduced it by (0.1 %). | $724.3M | 1.0 % | 2.1 % |
| Non-Residential same storeNon-Residential consists of revenues and expenses from retail and public parking garage operations. | $25.13M | – | – |
| Non-same store/otherNon-Same Store Properties primarily include properties acquired during 2025 and 2026, plus properties in lease-up and not stabilized as of January 1, 2025. | $35.63M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full Year 2026 outlook
- RevenueSame Store Revenue change 2.1% to 2.7%
- Operating expensesSame Store Expense change 3.0% to 4.0%
- NoteSame Store Physical Occupancy 96.3%
- NoteSame Store NOI change 1.5% to 2.1%
- NoteThe Company has withdrawn its EPS, FFO per share and Normalized FFO per share guidance (and related components of these measures such as interest expense) due to the pendency of the merger.
- NoteGuidance is solely with respect to the Company's existing Same Store Properties and reflects what the Company would expect to achieve if it operated as a standalone entity for the full year of 2026.
Capital returns
- Distributions declared per Common Share outstanding: $0.7025 for the quarter ended June 30, 2026.
- Distributions declared per Common Share outstanding: $1.405 for the six months ended June 30, 2026.
What drove it
- Same store revenue growth was driven by strong Physical Occupancy and better than anticipated Renewal Rate Achieved.
- The Company cited strong momentum in the San Francisco market and improvements in Bad Debt, Net across the portfolio for the raised same store revenue outlook.
- For Q2 2026, Same Store Residential lease rates increased 1.8 %, Bad Debt, Net added 0.2 %, and Other added 0.5 % versus Q2 2025.
- San Francisco Residential same store revenue increased 7.0 % and NOI increased 11.0 % year over year.
- New York Residential same store revenue increased 3.8 % and NOI increased 3.7 % year over year.
- Utilities expense increased 9.6 % year over year, primarily driven by higher costs for trash removal and higher commodity prices, particularly impacting electricity and gas.
- The Company sold two properties consisting of 515 apartment units for an aggregate sale price of approximately $164.0 million at a weighted average Disposition Yield of 5.3%.
Concerns
- GAAP diluted EPS declined 40.0 % to $0.30, and net income declined to $117,740 from $198,785, with the Company citing lower property sale gains and adjustment items.
- Same store expenses increased 3.0 %, exceeding same store revenue growth of 1.9 %, limiting same store NOI growth to 1.4 %.
- Denver Residential same store revenue declined (6.4 %) and NOI declined (9.9 %) year over year.
- Atlanta Residential same store revenue declined (0.3 %) and NOI declined (2.6 %) year over year.
- Dallas/Austin Residential same store revenue declined (1.3 %) and NOI increased 0.8 % year over year.
- The Company withdrew EPS, FFO per share and Normalized FFO per share guidance due to the pendency of the merger.
What to watch
- Full-year same store revenue guidance of 2.1% to 2.7% and same store NOI guidance of 1.5% to 2.1%.
- Physical occupancy guidance of 96.3%, versus Q2 same store physical occupancy of 96.2%.
- San Francisco momentum and portfolio Bad Debt, Net trends.
- Utility costs, which increased 9.6 % in Q2 2026 versus Q2 2025.
- The special meeting of shareholders related to the proposed merger scheduled for August 12, 2026.
- Lease-up progress at The Basin, which was 74% leased / 65% occupied, and Modera Bridle Trails, which was 14% leased / 2% occupied, as of June 30, 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $36,405 as of June 30, 2026, versus $55,904 as of December 31, 2025.
- Total debt was $8,261,669 as of June 30, 2026, comprising $1,591,821 of secured debt and $6,669,848 of unsecured debt.
- Total debt carried a weighted average rate of 3.78 % and weighted average maturity of 6.1 years as of June 30, 2026.
- Net debt was $8,187,605 as of June 30, 2026, versus $8,269,236 as of March 31, 2026.
- Total debt to Normalized EBITDAre was 4.32x and net debt to Normalized EBITDAre was 4.28x as of June 30, 2026.
- Unsecured revolving credit facility availability was $1,828,536 as of June 30, 2026.
- Operating cash flow and free cash flow were not reported in the filing.
Analysis
Equity Residential reported a solid operating quarter. Rental income was $785,049, compared with $768,827 in the prior-year quarter, while same store revenue increased 1.9% and same store NOI increased 1.4%. Same store physical occupancy was 96.2%, compared with 96.6% a year earlier. Diluted FFO per share increased to $1.00 from $0.98, and diluted Normalized FFO per share increased to $1.02 from $0.99. GAAP diluted EPS declined to $0.30 from $0.50 and net income fell to $117,740 from $198,785, as the Company cited lower property sale gains and adjustment items.
Same store Residential revenue growth reflected a 1.8 % increase in lease rates, a 0.2 % contribution from Bad Debt, Net, and a 0.5 % contribution from Other. Vacancy gain (loss) was a (0.3 %) drag and Leasing Concessions were a (0.1 %) drag. San Francisco was the standout market, with Residential same store revenue up 7.0 % and NOI up 11.0 %. New York also produced revenue growth of 3.8 % and NOI growth of 3.7 %. In contrast, Denver, Atlanta, and Dallas/Austin posted declines in Residential same store revenue of (6.4 %), (0.3 %), and (1.3 %), respectively.
Expense growth exceeded revenue growth in the same store portfolio. Same store expenses increased 3.0 %, including a 9.6 % increase in utilities, while same store revenue increased 1.9 %. The Company attributed utilities growth primarily to higher trash-removal costs and commodity prices, particularly electricity and gas. This spread constrained same store NOI growth to 1.4 %. The Company completed a consolidated partially owned development project in suburban Boston with 440 apartment units at a total cost of approximately $232.2 million, and completed an unconsolidated partially owned development project in suburban Seattle with 369 apartment units at a total cost of approximately $185.3 million.
Capital activity included no acquisitions and sales of two properties with 515 apartment units for approximately $164.0 million at a weighted average Disposition Yield of 5.3%. Cash and cash equivalents were $36,405, total debt was $8,261,669, and net debt was $8,187,605 at June 30, 2026. Total debt to Normalized EBITDAre was 4.32x. The Company declared distributions of $0.7025 per Common Share for the quarter.
Management raised the midpoint of full-year same store revenue guidance and NOI guidance. Revised guidance calls for same store revenue growth of 2.1% to 2.7%, same store expense growth of 3.0% to 4.0%, and same store NOI growth of 1.5% to 2.1%, with physical occupancy of 96.3%. The Company withdrew EPS, FFO per share, and Normalized FFO per share guidance because of the pending all-stock merger of equals with AvalonBay. The proposed transaction, including the August 12, 2026 shareholder special meeting, is the primary strategic consideration alongside operating execution.
Management, verbatim
We are pleased to increase our same store revenue and NOI annual guidance as a result of a solid demand environment characterized by occupancy and resident retention that remain at historically high levels. An increasingly supportive job market combined with declining levels of new supply in most of our markets sets the combined company up for great success,
Mark J. Parrell, President and CEO
Positive trends around both supply and demand continue to drive our operating performance during the primary leasing season and we continue to observe growing rents as we work our way through the summer,
Michael Manelis, Chief Operating Officer
Not in the filing
stated, not guessed- Operating cash flow
- Free cash flow
- Gross margin
- Income tax rate
- Share repurchases or share repurchase authorization
- Prior-release outlook for guidance comparison
- Quarterly total revenue percentage change
- Quarterly total expense percentage change
- Quarterly net income percentage change
- Quarterly rental income prior-quarter comparison
- GAAP operating income line item
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.