How Does This Apartment Operator Earn Revenue?
Equity Residential is a residential real estate company focused on owning and operating apartment communities. It generates revenue primarily from renting apartment homes to residents. The business is built around managing a large portfolio of properties and the day-to-day operations that keep occupancy and rental income flowing. With a market capitalization around USD 25.7 billion, it sits at a scale where capital structure choices meaningfully shape outcomes.
Are Margins And Returns Holding Steady?
FundamentalsFor 2025, reported in USD, revenue was about USD 626 million while net income came in at roughly USD 1.15 billion. Depreciation and amortization totaled around USD 1.01 billion, with capital spending of about USD 342 million during the period.
On a trailing-
Is The Market Paying Up For Safety?
DCF / MultiplesAt USD 68.63 per share, the stock trades above the central DCF estimate of USD 59.23, between a lower bound of USD 42.04 and an upper bound of USD 78.29. The current price is closer to the upper end of that valuation range than the midpoint.
Headline pricing also shows relatively full multiples, including 26.97x trailing earnings and 14.40x EV/EBITDA.
Valuation Relies On Balance Sheet Strength
TakeawayThe price already leans on a favorable balance sheet staying favorable. That requires debt to remain well-contained as conditions change. It also needs profits to hold up without extra leverage. If leverage rises, the valuation support can thin quickly.