By Dow Jones Business News, October 30, 2013, 05:30:00 PM EDT
By Anna Prior
Equity Residential's ( EQR ) third-quarter earnings climbed 72% as the apartment landlord recorded a jump in revenue and
higher gains from property sales.
The company raised the lower end of its full-year outlook for normalized funds from operations by three cents a share,
now seeing $2.83 to $2.85 a share.
Equity Residential, whose chairman is Sam Zell, is the country's largest apartment developer and manager.
The apartment market was helped by the collapse of the housing market, as uncertainty led residents to rent instead of
own. But some of the fastest-growing markets are beginning to see signs of oversupply, while low mortgage rates have
made owning a home cheaper than renting in many markets.
During the third quarter, the company sold ten apartment properties, for an aggregate sale price of $657.6 million.
Also during the quarter, the company sold two land parcels for an aggregate sale price of $44.3 million.
Overall for the latest quarter, the company reported a profit of $376.2 million, or $1.05 a share, up from $218.6
million, or 72 cents a share, a year earlier.
Normalized funds from operations--a key measure of performance in the real-estate sector--were flat at 73 cents a
share. The company had projected normalized FFO of 71 cents to 75 cents a share.
Revenue jumped 39% to $629.4 million, while rental income rose 40% to $626.9 million.
Analysts polled by Thomson Reuters were expecting rental revenue of $640.1 million.
For the current quarter, Equity Residential expects normalized FFO of 75 cents to 77 cents a share. Analysts were
expecting FFO of 75 cents a share.
Shares ended Wednesday at $53.15 and were flat in recent after hours trading. Through the close the stock has fallen
6.2% since the start of the year.
Write to Anna Prior at firstname.lastname@example.org
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