Earnings Review and Free Research Report: Equity Residential’s Normalized FFO Per Share Increased 2.5%
Research Desk Line-up: Mid-America Apartment Communities Post Earnings Coverage
LONDON, UK / ACCESSWIRE / November 3, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Equity Residential (NYSE: EQR), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=EQR, following the Company's posting of its financial results on October 24, 2017, for the third quarter of the fiscal year 2017. The real estate investment trust's total revenue increased 3% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the REIT - Residential industry. Pro-TD has currently selected Mid-America Apartment Communities, Inc. (NYSE: MAA) for due-diligence and potential coverage as the Company announced on October 25, 2017, its operating results for Q3 2017 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Mid-America Apartment Communities when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on EQR; also brushing on MAA. With the links below you can directly download the report of your stock of interest free of charge at:
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Earnings Reviewed
For the three months ended September 30, 2017, Equity Residential's total revenue increased 3% to $624.12 million from $606.07 million in Q3 FY16. During Q3 FY17, the Company's rental income increased 2.9% to $623.95 million from $605.86 million in the same period of last year. The total revenue surpassed analysts' expectations of $619.6 million.
During Q3 FY17, the Company's same-store revenue increased 2.2% on a y-o-y basis while net operating income increased 2.4% on a y-o-y basis.
For the reported quarter, Equity Residential's property and maintenance expenses increased 0.5% to $104.72 million from $104.22 million in Q3 FY16. During Q3 FY17, the Company's property management expenses increased 6.8% to $20.86 million from $19.52 million in the comparable period of last year. For the reported quarter, Equity Residential's G&A expenses increased 1.3% to $12.57 million from $12.40 million in Q3 FY16. During Q3 FY17, the Company's depreciation expenses increased 2.7% to $184.10 million from $179.23 million in Q3 FY16.
During Q3 FY17, the Company's earnings before interest, tax, depreciation, and amortization (EBITDA) decreased 13.1% to $421.73 million from $485.76 million in the corresponding period of last year. For the reported quarter, Equity Residential's normalized EBITDA increased 3.2% to $402.18 million from $389.63 million in Q3 FY16.
During Q3 FY17, Equity Residential's operating income increased 4% to $217.79 million from $209.37 million in Q3 FY16. For the reported quarter, the Company's operating margin increased 30 basis points to 34.8% of revenue from 34.5% of revenue in Q3 FY16.
For the reported quarter, Equity Residential's net income decreased 33.7% to $137.46 million from $207.54 million in Q3 FY16. During Q3 FY17, Equity Residential's diluted earnings per share (EPS) decreased 33.9% to $0.37 from $0.56 in the same period of last year.
For the reported quarter, Equity Residential's funds from operations (FFO) increased 4.5% to $308.48 million on a y-o-y basis from $295.11 million in Q3 FY16. During Q3 FY17, the Company's normalized FFO increased 2.5% to $304.84 million on a y-o-y basis from $297.19 million in Q3 FY16. During Q3 FY17, Equity Residential's FFO per share increased 5.1% to $0.81 on a y-o-y basis from $0.77 in Q3 FY16. For the reported quarter, the Company's normalized FFO per share increased 2.5% to $0.80 on a y-o-y basis from $0.78 in the comparable period of last year. The normalized FFO per share surpassed analysts' expectations of $0.79.
During Q3 FY17, Equity Residential acquired three consolidated apartment properties in Boston, Los Angeles, and Bellevue, WA, comprising of 811 apartment units for around $411.0 million.
Balance Sheet
As on September 30, 2017, Equity Residential's cash and cash equivalents decreased 39.6% to $46.57 million from $77.21 billion as on December 31, 2016.
For the reported quarter, the Company's restricted deposits decreased 52.3% to $36.64 million from $76.95 million in Q4 FY16.
For the reported quarter, Equity Residential's accounts payable and accrued expenses increased 13.9% to $167.98 million from $147.48 million in Q4 FY16.
For the reported quarter, the Company's security deposits increased 4.1% to $65.23 million from $62.62 million in the fourth quarter of last year.
For the reported quarter, Equity Residential's total debt to normalized EBITDA ratio was 5.70x compared to 5.72x in Q3 FY17.
For the reported quarter, the Company's net debt to normalized EBITDA ratio was 5.67x compared to 5.69x in Q3 FY17.
Outlook
For Q4 FY17, the Company expects normalized FFO per share to be in the range of $0.79 - $0.83, while for the fiscal year 2017, it is expected to be in the band of $3.10 - $3.14.
Stock Performance
Equity Residential's share price finished yesterday's trading session at $66.85, sliding 1.42%. A total volume of 1.24 million shares have exchanged hands. The Company's stock price surged 0.50% in the last one month, 2.08% in the past six months, and 9.82% in the previous twelve months. Additionally, the stock gained 3.87% since the start of the year. Shares of the Company have a PE ratio of 23.08 and have a dividend yield of 3.02%. The stock currently has a market cap of $24.38 billion.
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