Why Residential REIT Equity Residential Shares Are Up Today
Portfolio Pulse from Lekha Gupta
Equity Residential (NYSE:EQR) shares rose in premarket trading after the company reported Q4 FY23 results, surpassing rental income consensus with $727.5 million and achieving a 3.9% Y/Y increase in same-store revenue. The normalized FFO per share was $1.00, a 6.4% Y/Y increase and in line with expectations. The company sold three properties for $184.5 million and repurchased shares worth $49.1 million, with the Board reauthorizing the share repurchase program to 13.0 million shares. Equity Residential provided an FY24 outlook with expected same-store revenue growth of 2.0% to 3.0% and normalized FFO per share of $3.80 to $3.90. Shares were up 4.55% at $62.00 in premarket trading.
January 31, 2024 | 1:12 pm
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POSITIVE IMPACT
Equity Residential's Q4 FY23 results exceeded rental income expectations and showed robust same-store revenue growth. The company's share repurchase and positive FY24 outlook may boost investor confidence.
The positive earnings report, with rental income and same-store revenue exceeding expectations, indicates strong operational performance. The share repurchase program and optimistic FY24 outlook suggest management confidence, which typically has a positive impact on investor sentiment and could lead to a short-term increase in the stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100