Equity Residential (EQR), a leading real estate investment trust (REIT) focused on residential properties, reported significant financial developments in its 10-Q filing for the nine months ended September 30, 2024. The company achieved a net income of $637.1 million, a 16.6% increase from $546.2 million in the same period of 2023. However, net income for the third quarter decreased to $148.5 million from $181.3 million year-over-year, reflecting an 18.1% decline.
Total rental income for the nine months rose to $2.2 billion, up 3.1% from $2.1 billion in 2023. The third quarter also saw a 3.4% increase in rental income, reaching $748.3 million compared to $724.1 million in the prior year. The company’s net operating income (NOI) for the nine months was $1.5 billion, a 3.8% increase from $1.4 billion, while NOI for the third quarter increased by 3.1% to $507.2 million.
EQR's total expenses for the nine months increased to $1.6 billion from $1.5 billion, driven by higher real estate taxes, operating expenses, and insurance costs. The company reported a net gain on sales of real estate properties of $227.8 million for the nine months, significantly up from $127.0 million in the previous year. However, the third quarter experienced a net loss of $0.2 million on property sales, contrasting with a gain of $26.9 million in the same quarter of 2023.
The company’s investment in real estate as of September 30, 2024, was $30.1 billion, an increase from $28.7 billion at the end of 2023. EQR's cash and cash equivalents decreased to $28.6 million from $50.7 million, while total liabilities rose to $9.5 billion from $8.5 billion. Retained earnings also fell to $1.2 billion from $1.4 billion.
Strategically, EQR acquired 14 consolidated rental properties with 4,418 apartment units for approximately $1.3 billion during the nine months, while disposing of six properties for $365.5 million. The company also reported a significant increase in investment in real estate acquisitions, totaling $1.3 billion compared to $324.5 million in the previous year.
EQR maintained a strong liquidity position with approximately $1.7 billion available, supported by a robust balance sheet and limited near-term debt maturities. The company declared a dividend of $0.675 per share for the third quarter, reflecting a 2.0% increase over the previous year.
About EQUITY RESIDENTIAL
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