S&P 500 (NYSE:SPY) component Equity Residential (NYSE:EQR) reported its results for the second quarter. Equity Residential is a real estate investment trust company that acquires and manages apartment properties in top growth markets in the United States.
Equity Residential Earnings Cheat Sheet for the Second Quarter
Results: The company’s funds from operations (FFO) was unchanged from the year earlier quarter at 58 cents per share. FFO, a measure of performance of a real estate investment trust (REIT), removes the profit-reducing effect that depreciation has on earnings. It was in line with the consensus estimate. FFO, a measure of performance of a real estate investment trust (REIT), removes the profit-reducing effect that depreciation has on earnings.
Quoting Management: “As we enter the final months of our primary leasing season, we are pleased that fundamentals remain strong across all of our markets and that same store net operating income (NOI) results for the full year should be at the high end of our original guidance range,” said David J. Neithercut, Equity Residential’s President and CEO. “However, we expect Normalized Funds from Operations for the year to be slightly below our original guidance midpoint due to increased disposition activity as we take advantage of attractive pricing for non-core assets and are challenged to redeploy that capital in a highly competitive acquisition environment in our core markets.”
Competitors to Watch: AvalonBay Communities, Inc. (NYSE:AVB), UDR, Inc. (NYSE:UDR), Apartment Investment and Management Co. (NYSE:AIV), Camden Property Trust (NYSE:CPT), BRE Properties, Inc. (NYSE:BRE), Mid-America Apartment (NYSE:MAA), Home Properties, Inc. (NYSE:HME), Post Properties, Inc. (NYSE:PPS), Colonial Properties Trust (NYSE:CLP), and Essex Property Trust, Inc. (NYSE:ESS).
(Source: Xignite Financials)