Equity Residential delivered its fourth quarter and full-year 2025 financial results, highlighting steady operational performance amid a shifting apartment market.
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Q4 2025 Financial Performance
Rental income reached $781.9 million in the fourth quarter, marking a rise from $766.8 million in the prior-year period. Total operating expenses increased to $254.4 million from $245.0 million. Net operating income (NOI) climbed to $527.5 million, up from $521.8 million year-over-year.
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Diluted earnings per share stood at $1.00, down from $1.10. Funds from operations (FFO) per share remained steady at $0.97, while normalized FFO per share advanced 3% to $1.03.
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Same-store revenues grew 2.5% in the quarter, with expenses up 2.9% and NOI expanding 2.3%.
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Full-Year 2025 Results
For the full year, rental income totaled $3.094 billion, supporting NOI of $2.079 billion. Net income attributable to common shares hit $1.119 billion, or $2.94 diluted EPS. FFO per share rose 4.8% to $3.94, and normalized FFO per share increased 2.6% to $3.99.
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Same-store metrics showed revenues up 2.6%, expenses higher by 3.7%, and NOI growth of 2.2%. Resident retention achieved a record high for the year.
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Capital Allocation and Transactions
The company acted as a net seller in 2025, disposing of 11 properties for approximately $1.1 billion and acquiring nine for $636.8 million. In Q4, six properties sold for $527.6 million, with proceeds funding share repurchases. Equity Residential bought back about 4.8 million shares, or 1.3% of outstanding shares, for $300 million at an average of $62.03 per share. Over the past year, capital returned to shareholders totaled around $1.38 billion through dividends and repurchases.
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2026 Guidance
Looking ahead, Equity Residential forecasts same-store revenue growth of 1.2% to 3.2%, expense growth of 3.0% to 4.0%, and NOI growth of 0.5% to 2.5%. Physical occupancy targets 96.4%. Normalized FFO per share guidance ranges from $4.02 to $4.14, with FFO per share at $3.98 to $4.10. First-quarter normalized FFO per share is expected at $0.94 to $0.98.
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CEO Outlook
President and CEO Mark J. Parrell stated, “With new apartment supply dramatically declining, continued social and cost considerations that favor rental housing and a portfolio that is well positioned with high current occupancy and significant exposure to the strong San Francisco and New York markets, we expect operating momentum to improve as we move through the year. In the meantime, we continue to be opportunistic and agile with our investors’ capital.”
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