Equity Residential: Gradual Apartment Recovery Is In Valuation
Portfolio Pulse from
Equity Residential (EQR) is rated as a 'hold' due to its fair valuation, secure and growing dividend, and potential for 8-9% long-term returns. Its focus on legacy markets like NYC and San Francisco has insulated it from increased Sun Belt apartment supply, aiding rent growth. Strong renewal activity and high occupancy rates are supported by housing unaffordability and high mortgage rates, benefiting rental demand.
January 02, 2025 | 5:30 pm
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NEUTRAL IMPACT
Equity Residential is rated as a 'hold' due to its fair valuation and potential for 8-9% long-term returns. Its focus on NYC and SF markets helps it avoid Sun Belt supply issues, supporting rent growth.
EQR's focus on legacy markets like NYC and SF has insulated it from increased Sun Belt apartment supply, aiding rent growth. The secure and growing dividend, along with strong renewal activity and high occupancy rates, supports a 'hold' rating. The potential for 8-9% long-term returns is balanced by the fair valuation, leading to a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100