EQUITY RESIDENTIAL (EQR)

Price—Loading quote

AI: Fair-priced

Price checkThe price looks reasonable, but the pending merger keeps a clear bargain case from forming.

At $65.97 on August 14, shares trade at about 16.2 times the $4.08 midpoint of the last standalone 2026 normalized funds-from-operations guidance and yield roughly 4.3% on the $2.81 annual dividend. Normalized funds from operations adjusts profit for property depreciation and unusual items. This is neither distressed nor obviously rich for a 96%-occupied apartment owner. Management later withdrew per-share guidance because the AvalonBay merger changes the company. The evidence supports a fair-priced verdict, assuming modest rent growth and competent integration.

Big pictureApartment cash flow is durable, though costs are still rising faster than rents.

Operating cash flow climbed from $1.27 billion in 2020 to $1.65 billion in 2025, showing durable rent collection through a difficult cycle. In the first half of 2026, normalized funds from operations reached $2.01 per share, up 3.6% from a year earlier. Second-quarter occupancy remained 96.2%, but comparable-property revenue grew 1.9% while expenses rose 3.0%, limiting property-income growth to 1.4%. Apartments provide recurring monthly revenue, yet rent growth still follows jobs, household moves, local supply, and affordability; recent cost growth leaves little room for a downturn.

Business strengthDebt is manageable, and recent buybacks reduced shares without endangering near-term liquidity.

At June 30, debt was $8.26 billion and net debt equaled 4.28 times normalized annual operating earnings before interest and depreciation, down from 4.35 times in March. Ninety percent of property income came from assets not pledged to lenders, and $1.83 billion remained available on the revolving credit line. Equity Residential repurchased 3.5 million shares for $219.4 million at $63.42 in the first quarter; shares fell from 379.5 million at end-2024 to 374.9 million. Yet first-half dividends and buybacks totaled $744.5 million versus $702.4 million of operating cash flow, so repurchases cannot continue at that pace indefinitely.

What could change the storyThe merger can create real savings, but integration and higher borrowing costs could erase them.

The bull case is management's projected $125 million of annual net merger savings, broader market exposure, and better rent growth as new construction fades. Delivering those savings with comparable-property income growth above 2% could make today's multiple attractive. The bear case is slower rents, operating costs continuing to outrun revenue, or integration overruns after issuing roughly 397 million new shares to AvalonBay holders. New debt costs 4.95%-5.45%, above Equity Residential's 3.78% June debt average. The price assumes the merger closes and savings offset financing pressure and the complexity of combining more than 180,000 apartments.

$65.97 price considered

AI: News

Merger wins shareholder votesShareholders overwhelmingly approved the merger, removing a major obstacle before the planned closing.

On August 12, 2026, more than 99% of votes cast at each company approved the proposals needed for the deal; the votes represented about 90% of each company's outstanding shares. Closing was expected August 17, subject to customary conditions, with Vivmark Residential expected to trade as VMRK on August 18. The vote removes a major completion risk, but it does not prove the projected savings will arrive. No reliable event-specific market reaction was identified, so none is attributed to the vote.

Long-term debt issuedA billion-dollar bond sale extended funding, but locked in meaningfully higher borrowing costs.

On August 4, 2026, the operating partnership agreed to sell $600 million of 4.95% notes due 2031 and $400 million of 5.45% notes due 2036. The fixed maturities strengthen long-term funding visibility, but their rates exceed Equity Residential's 3.78% average debt cost at June 30. That gap shows refinancing can pressure future cash available for dividends or reinvestment. The filing did not establish an event-specific stock reaction, so none is attributed.

Second-quarter resultsCash-based earnings improved, but expenses still outran rent growth and restrained property income.

On July 22, 2026, second-quarter normalized funds from operations rose 3.0% to $1.02 per share, while ordinary earnings fell to $0.30 from $0.50 because property-sale gains were lower. Comparable-property revenue increased 1.9%, expenses 3.0%, and property income 1.4%; management raised the midpoint of its full-year property-income outlook to 1.8%. The next session's close was nearly unchanged, so there is no clear price reaction to attribute. The key signal is steady cash growth despite weak reported earnings.

AvalonBay merger announcedThe AvalonBay deal promised scale and savings, while making future value depend on integration.

On May 21, 2026, Equity Residential and AvalonBay announced an all-stock merger of equals. Each AvalonBay share would receive 2.793 Equity Residential shares; legacy Equity Residential holders were expected to own about 48.8% of a company with more than 180,000 apartments. Management projected $125 million of annual net operating savings. EQR closed 0.8% lower that day, but timing alone cannot establish that the merger caused the move. The deal shifts value from standalone apartment performance toward integration, financing, and synergy delivery.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007
Revenue	—	—	—	—	—	—	$384,000	$753,000	$717,000	$3.6M	$2.74B	$2.61B	$2.39B	$1.75B	$1.53B	$1.67B	$1.64B	$1.98B	$1.82B
Gross profit	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	$1.18B	$1.10B	$1.12B	—
Operating expenses	$1.02B	$961.8M	$926.7M	$872.3M	$850.6M	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Operating income	—	—	$1.16B	$1.12B	$1.68B	$1.32B	$1.36B	$1.11B	$1.00B	$856.1M	$1.01B	$921.6M	$512.3M	$514.1M	$406.5M	$348.2M	$432.6M	$423.9M	$495.4M
EBITDAderived	—	—	—	—	—	—	—	$1.90B	$1.75B	$1.57B	$1.78B	$1.68B	$1.49B	$1.07B	$912.7M	—	—	—	—
Net income	$1.12B	$1.04B	$835.4M	$776.9M	$1.33B	$913.6M	$970.4M	$657.5M	$603.5M	$4.29B	$870.1M	$631.3M	$1.83B	$841.7M	$893.6M	$283.6M	$362.3M	$407.6M	$980.2M
Basic EPSper diluted share	$2.95	$2.73	$2.20	$2.06	$3.56	$2.45	$2.61	$1.78	$1.64	$11.75	$2.37	$1.74	$5.16	$2.73	$2.98	$0.95	$1.27	$1.46	$3.40
Diluted EPSper diluted share	$2.94	$2.72	$2.20	$2.05	$3.54	$2.45	$2.60	$1.77	$1.63	$11.68	$2.36	$1.73	$5.16	$2.71	$2.98	$0.95	$1.27	$1.46	$3.40

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys1$279.24 disclosed value

Sells (SEC code S)27$5.45M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Feb 18, 2026Form 4	Manelis Michael LExecutive Vice President & COO	SellCommon Shares Of Beneficial Interest	2.4K	$63.56	$154.4K	43.7K
Feb 18, 2026Form 4	Kaufman IanChief Accounting Officer	SellCommon Shares Of Beneficial Interest	909	$63.56	$57.8K	29.4K
Feb 18, 2026Form 4	Carraway CatherineEVP & CHRO	SellCommon Shares Of Beneficial Interest	749	$63.56	$47.6K	15.9K
Feb 10, 2026Form 4	Manelis Michael LExecutive Vice President & COO	SellCommon Shares Of Beneficial Interest	5.8K	$65.13	$375.5K	46.1K
Feb 10, 2026Form 4	Garechana RobertEVP & Chief Investment Officer	SellCommon Shares Of Beneficial Interest	3.6K	$65.13	$236.9K	18.7K

Review ownership filings at SEC.gov ↗

EQUITY RESIDENTIAL (EQR)

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Financial statements

Insider buys & sells