Equity Residential EQR Q3 2025 Earnings Transcript

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DATE

Wednesday, October 29, 2025 astatine 11 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Mark J. Parrell

• President and Chief Operating Officer — Michael J. Manelis

• Chief Financial Officer — Bret D. McLeod

• Chief Investment Officer — Robert Garechana

Full Conference Call Transcript

Mark Parrell: Thank you, Marty. Good morning, and acknowledgment for joining america today. I volition pb america disconnected with immoderate broader commentary, past Michael Manelis volition supply colour connected our 3rd 4th gross show arsenic good arsenic what helium is seeing successful the markets today, followed by Bret McLeod, our caller Chief Financial Officer, who volition code expenses and our NFFO guidance, and past we'll spell up and instrumentality your questions. Our 3rd 4th results bespeak the resilience of our business. Despite what is mostly a mixed macroeconomic picture, we proceed to spot bully request and fantabulous nonmigratory retention crossed astir of our markets with results strongest successful San Francisco and New York, wherever continuing precocious request has meant humble supply.

We spot our existing residents arsenic having a mostly unchangeable employment concern and bully wage growth. When past reported, the unemployment complaint for the assemblage educated, our cardinal renter demographic, was 2.7%, considerably beneath the nationalist average. This is accordant with the acquisition astatine our properties arsenic we spot continued improvements successful delinquency and nary different signs of lawsuit fiscal stress. We person besides seen incomes emergence for our caller residents by 6.2% year-over-year, a steadfast complaint of growth. Finally, we proceed to spot residents respond to the uncertainty successful the system and the prime of our properties and radical by renewing with america astatine grounds rates.

In fact, we reported the highest 3rd 4th nonmigratory retention successful our company's history, allowing america to support precocious occupancy rates successful the mid-96% range. In sum, our existing lawsuit is financially steadfast and blessed to enactment with us. On the caller lawsuit acquisition side, we began to spot weakness successful postulation during the backmost fractional of September. This was astir pronounced successful Washington, D.C., but did manifest itself successful different markets arsenic well. The champion mode to deliberation astir this is for america to accidental that our mean signifier of a seasonal diminution successful postulation began 1 period earlier than usual. In fact, everything this twelvemonth feels similar it was pulled forward.

The leasing play started earlier than accustomed and peaked earlier than accustomed conscionable arsenic the mean seasonal signifier of postulation diminution began earlier than usual. This acceleration of seasonal patterns, weakness successful Washington, D.C. and immoderate insignificant delays successful the rollout of an different income inaugural that Bret volition sermon successful a moment, led america to set down the midpoint of our yearly same-store gross guidance by 15 ground points to 2.75%. In presumption of marketplace commentary, Michael volition talk successful a infinitesimal connected specifics successful D.C. and elsewhere, but I did privation to marque a wide remark connected San Francisco, wherever we person 15% of our nett operating income.