Equity Residential Says Consumers Become More Price Sensitive Following Covid-19 Shut Downs
July 28 2020 - 5:44PM
Dow Jones News
By Micah Maidenberg
Equity Residential said it collected on average 97% of rents for
the second quarter, a pace that comes as the economy grapples with
a recovery from coronavirus-related shut downs earlier this
year.
Equity on Tuesday said it saw a recovery in demand by late May,
with initial tenant leads, traffic and applications in-line with a
year earlier. Still, the company's units became a bit less full in
the quarter as would-be renters watched costs carefully.
"We see good demand for our apartments, both urban and suburban,
but with increased customer price sensitivity, especially in the
urban cores of New York, San Francisco and Boston," said Chief
Executive Mark Parrell.
Physically occupancies across its portfolio, on a comparable
basis, fell to 94.9% from 96.5% the year earlier.
Rental income for the quarter slipped to $653.5 million from
$669.4 million.
"Looking forward, we believe the rate of improvement in our
business will be dictated by how effectively the virus can be
controlled and more normal economic activity restored," Mr. Parnell
said.
The Chicago-based landlord said second-quarter net income fell
to $271.5 million from $321.3 million. Earnings per share dropped
to 70 cents from 83 cents in the second quarter in 2019.
Equity reported funds from operations, after adjustments, of 86
cents a share for the quarter, flat year over year. Funds from
operations is an earnings metric used by landlords that strips out
gains or losses from property sales, among other adjustments.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
July 28, 2020 17:29 ET (21:29 GMT)
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