Equity Residential Posts Q1 FFO of $0.99, $219M Buyback and 1.4% Dividend Hike
Equity Residential reported Q1 funds from operations of $0.99 per share on $779.8M revenue, beating analysts' 95c estimate despite missing the $782.6M revenue forecast. The REIT repurchased 3.5M shares for $219.4M, raised its annual dividend 1.4% to $2.81, and forecast Q2 FFO of $0.98–$1.02 and full-year FFO of $4.02–$4.14.
1. Q1 Financial and Operational Results
Equity Residential generated funds from operations of $381.1 million ($0.99 per share) in Q1, surpassing the consensus 95c estimate, while posting $779.8 million in revenue versus $782.6 million expected and net income of $89.7 million ($0.24 per share). Same store revenues rose 2.2% and same store expenses increased 3.7%, driving a 1.4% increase in same store NOI, supported by a record-low 7.8% resident turnover and a 130 bp sequential improvement in blended rate growth to 1.5%.
2. Share Repurchase and Dividend Increase
During the quarter, the company repurchased and retired approximately 3.5 million common shares at a weighted average price of $63.42, totaling $219.4 million, and raised its annual dividend by 1.4% to $2.81 per share, underscoring its confidence in cash flow and capital allocation.
3. Guidance and Outlook
Equity Residential expects Q2 FFO per share between $0.98 and $1.02 and full-year FFO in the range of $4.02 to $4.14. Management cited continued demand in key markets, constrained new supply, and improving leasing trends as drivers for sustained performance.