EQR Q4 2025 Earnings Transcript

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Tue, April 21, 2026 astatine 12:24 PM CDT 45 min read

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Friday, Feb. 6, 2026 astatine 10 a.m. ET

• Chief Executive Officer — Mark J. Parrell

• Chief Operating Officer — Michael L. Manelis

• Chief Financial Officer — Bret E. McLeod

• Executive Vice President & Chief Investment Officer — Robert J. Garechana

Mark Parrell: Thank you, Marty. Good morning, and convey you each for joining america contiguous to sermon our 4th fourth and afloat twelvemonth 2025 results and our outlook for 2026. I volition commencement america off, past Michael Manelis, our Chief Operating Officer, volition talk to our 2025 operating show and 2026 gross guidance. Bret McLeod, our Chief Financial Officer, volition past screen our 2026 disbursal and NFFO guidance, and past we'll spell up and instrumentality your questions. 2025 was a challenging twelvemonth for the rental lodging industry, including Equity Residential. While our 2025 same-store NOI results matched our archetypal guidance, the roadworthy to those results was not arsenic straightforward arsenic we had expected.

In galore of our coastal markets, we saw stronger-than-expected rental maturation done the archetypal fractional of the year, followed by a deceleration successful gross momentum done the second portion of the twelvemonth crossed each of our markets, but San Francisco and New York notable agleam spots that we expect to proceed to present beardown results successful 2026. This deceleration was peculiarly pronounced successful highly supplied markets. We judge heightened argumentation and geopolitical uncertainty took a toll connected user and leader assurance causing an abrupt slowdown successful occupation and rent maturation successful the 2nd and 3rd quarters. Looking guardant to 2026, determination is decidedly a wide scope of imaginable outcomes for the U.S. economy, particularly arsenic it relates to occupation growth.

Our wider-than-usual same-store gross guidance scope acknowledges that uncertainty. The midpoint of our gross guidance scope assumes dependable request akin to the backmost fractional of 2025. So fundamentally a continuation of the existent low-high, low-fire situation and a important betterment successful the proviso representation particularly successful the 2nd fractional of 2026. But with S&P 500 firm net and the system arsenic a whole, continuing to turn astatine a brisk pace, we tin surely spot a way to an improving occupation representation arsenic we determination done the year.

With our portfolio occupancy presently implicit 96%, a importantly improving proviso representation and societal and outgo factors that favour our concern implicit owned lodging and advantageous portfolio positioning owed to 30% of our portfolio being successful the well-performing San Francisco and New York markets, we consciousness similar we conscionable request a small spot of upwind astatine our backmost successful the signifier of improved occupation maturation to spot 2026 gross maturation accelerate beyond our existent expectations. On the superior allocation front, we stay committed to our diversified portfolio strategy.