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Equity Residential anticipates 2026 FFO to fall slightly below analysts forecasts due to weak rental demand and continued high apartment supply. The Chicago-based REIT, which operates over 85,000 homes nationwide, saw new leases decline by 4.7% in the last quarter of 2025, with blended lease rates rising only 0.5%. Adjusted FFO for 2026 is projected between USD 4.02 and USD 4.14 per share, slightly under Wall Street expectations. Normalized FFO for the previous quarter met estimates, but diluted earnings per share decreased from the prior year.
Equity Residential has projected its funds from operations (FFO) for 2026 to be slightly below Wall Street expectations, reflecting softer demand in the rental apartment sector while supply remains abundant. The Chicago-based real estate investment trust manages more than 85,000 apartment homes across the United States and has been monitoring leasing trends closely.
In the last quarter of 2025, new leases dropped by 4.7%, while the blended lease rate, which accounts for both new leases and renewals, saw only a modest increase of 0.5%. These figures indicate a cooling in rental activity despite high apartment availability. Equity Residential expects its adjusted FFO for 2026 to range between USD 4.02 and USD 4.14 per share, with the midpoint slightly below analysts estimate of USD 4.12 per share, according to LSEG-compiled data.
For the quarter ending December 31, the company reported normalized FFO of USD 1.03 per share, matching Wall Street's expectations. Its diluted earnings per share fell to USD 1.00 from USD 1.10 the previous year, highlighting the impact of weaker leasing growth on profitability. Analysts and investors are closely watching how the company navigates the high supply environment and rental market trends in 2026.
Source Reuters
5th Jun, 2025
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