Equity Residential (NYSE: EQR) today provided an update regarding certain same store Residential operating trends in its business.
The Company continued to see good demand for its apartment units in February 2021 as evidenced by a continued trend of Move Ins exceeding Move Outs translating into higher Physical Occupancy. Additionally, we are currently seeing ongoing improvement in our rates and reductions in Leasing Concession use.
The Company also provided the following same store Residential operating metrics:
December 2020 | January 2021 | February 2021 (2) | ||||
Physical Occupancy (1): | 94.4% | 95.1% | 95.3% | |||
Percentage of Residents Renewing by Month: | 53% | 51% | 54% | |||
Pricing Trend: | $2,287 | $2,359 | $2,413 | |||
Blended Rate: | (13.9%) | (14.5%) | (11.5%) |
(1) | Physical Occupancy is as of month end. | |
(2) | February 2021 results are preliminary, except for Physical Occupancy. |
About Equity Residential
Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract high quality long-term renters. Equity Residential owns or has investments in 304 properties consisting of 77,889 apartment units, located in Boston, New York, Washington, D.C., Seattle, San Francisco, Southern California and Denver. For more information on Equity Residential, please visit our website at www.equityapartments.com.
Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential’s management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, competition and local government regulation. In addition, these forward-looking statements are subject to risks related to the COVID-19 pandemic, many of which are unknown, including the duration and severity of the pandemic, the extent of the adverse health impact on the general population and on our residents, customers and employees in particular, its impact on the employment rate and the economy and the corresponding impact on our residents’ and tenants’ ability to pay their rent on time or at all, the extent and impact of governmental responses, the rollout and effectiveness of vaccines and the impact of operational changes we have implemented and may implement in response to the pandemic. Other risks and uncertainties are described under the heading “Risk Factors” in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityapartments.com. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Terms and Definitions:
Blended Rate – The weighted average of New Lease Change and Renewal Rate Achieved.
Leasing Concessions – Reflects upfront discounts on both new move-in and renewal leases on a straight-line basis.
Move Ins – The number of leases where financial responsibility began for the reporting period.
Move Outs – The number of physical move outs for the reporting period.
New Lease Change – The net effective change in rent (inclusive of Leasing Concessions) for a lease with a new or transferring resident compared to the rent of the identical apartment unit, regardless of lease term.
Percentage of Residents Renewing – Leases renewed expressed as a percentage of total renewal offers extended during the reporting period.
Physical Occupancy – The weighted average occupied apartment units for the reporting period divided by the average of total apartment units available for rent for the reporting period.
Pricing Trend – Weighted average of 12-month base rent including amenity amount less Leasing Concessions on 12-month signed leases for the reporting period.
Renewal Rate Achieved – The net effective change in rent (inclusive of Leasing Concessions) for a new lease on an apartment unit where the lease has been renewed as compared to the rent for the prior lease of the identical apartment unit, regardless of lease term.
Residential – Consists of multifamily apartment revenues and expenses.
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