01—Abstract
Summary
Summary of the 10-K filed February 13, 2026. Cited figures are marked; the original filing is the authoritative source.
Equity Residential (EQR) reported a solid 2025 with net income of $1.15 billiona, up 7.6% from 2024, and diluted EPS of $2.94 versus $2.72.
Total NOI rose 3.0% to $2.08 billionb, driven by a 2.2% increase in same-store NOI and a 14.2% increase in non-same-store NOI from 2024–2025 acquisitions. Same-store Physical Occupancy was 96.4%, and same-store rental income grew 2.6%, though management noted that new-lease pricing was more challenging in Expansion Markets such as Atlanta and Dallas, where supply remained elevated. Management described the Established Markets (about 89% of stabilized budgeted NOI) as relatively healthy, with San Francisco and New York as the strongest performers and Los Angeles and Washington, D.C. facing headwinds.
The balance sheet remains conservative. Total debt was $8.2 billionc, with 90.5% at fixed rates and a weighted average effective interest cost of 3.93%. Approximately $1.9 billion of revolver availability was reported, and about 90% of the $30.5 billion real estate investment was unencumbered.
Credit ratings were A- (S&P) and A3 (Moody's) for ERPOP's senior debt. The company repurchased 4.5 million shares for about $281 milliond in 2025, and the dividend was $0.6925 per quarter, up 2.6% annualized. Normalized FFO was $1.56 billion, or roughly $4.03 per diluted share/unit based on 390.4 million diluted shares/units.
Key watch items include the 2026 debt maturity wall of about $1.19 billion (14.4% of total debt), roughly $70.6 million of litigation accruals, including the ongoing RealPage antitrust class action, rising real estate taxes and utility costs, and a 2025 decline in investment-related losses from unconsolidated development projects. Management also highlighted that the development pipeline is modest, at about $931 million in total project cost, with 2,117 units across consolidated and unconsolidated projects.
02—Key points
Key Highlights
- Net income rose 7.6% to $1.15 billion, and diluted EPS increased to $2.94 from $2.72, mainly on higher NOI, larger gains on property sales ($626 million), and higher interest and other income.
- Total NOI grew 3.0% to $2.08 billion. Same-store NOI rose 2.2% on 2.6% higher same-store rental income, while same-store operating expenses rose 3.7%, led by utilities (+$11.3 million) and real estate taxes (+$8.1 million).
- Same-store Physical Occupancy was 96.4% and same-store average rental rate was $3,203, with 2.5% turnover. Renewal pricing was strong, but new-lease pricing was weaker in the Expansion Markets.
- Liquidity was about $1.9 billion, with an undrawn $2.5 billion unsecured revolver maturing in 2030 and $1.5 billion of commercial paper capacity. Debt is 90.5% fixed rate at a 3.93% effective interest cost.
- Capital recycling was active: $1.1 billion of dispositions (11 properties) against $662 million of acquisitions (9 properties), plus $342 million of capital expenditures and $112 million of development spend.
- Shareholder returns included $281 million of share repurchases at an average of $62.00, a quarterly dividend of $0.6925 (2.6% annualized increase), and total 2025 distributions of about $1.1 billion.
- Risk items include a $1.19 billion debt maturity in 2026, $70.6 million of litigation accruals (including the RealPage antitrust litigation), and a 2025 rise in losses from unconsolidated investments to $18.9 million.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 13, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Operating Expenses | $2.22B$2.11B | +5.5% |
| Interest Expense | $306.80M$285.74M | +7.4% |
| Net Income | $1.15B$1.07B | +7.6% |
| EPS (Basic) | $2.95$2.73 | +8.1% |
| EPS (Diluted) | $2.94$2.72 | +8.1% |
| Shares Outstanding (Basic) | 379.61M378.80M | +0.2% |
| Shares Outstanding (Diluted) | 390.41M390.74M | −0.1% |
05—Questions
Frequently Asked Questions
How did EQR's operating performance trend in 2025?
Same-store rental income rose 2.6% to $2.82 billion and same-store NOI rose 2.2% to $1.92 billion. Total NOI increased 3.0% to $2.08 billion, supported by acquisitions in 2024 and 2025. Same-store Physical Occupancy was 96.4%, and average same-store rental rates were $3,203 per unit.
What is the state of EQR's balance sheet and liquidity?
Total debt was $8.2 billion, of which 90.5% was fixed rate, with a weighted average effective interest cost of 3.93%. The company had about $1.9 billion of revolver availability and a 25.1% debt-to-total-market-capitalization ratio. ERPOP's senior debt is rated A- by S&P and A3 by Moody's. Near-term maturities are manageable but include $1.19 billion due in 2026.
Which markets are performing best and worst?
San Francisco and New York were the strongest performers, with healthy demand, low turnover, and modest new supply. Seattle is improving but faces higher supply. Washington, D.C. slowed in the second half of 2025 due to government-related uncertainty, and Los Angeles faces muted entertainment-industry growth. Expansion Markets such as Atlanta, Dallas, Denver, and Austin have faced elevated supply, though management says Atlanta and Dallas are starting to improve.
What are the main risks or legal exposures disclosed?
EQR is a defendant in RealPage-related antitrust class actions alleging coordinated rent pricing, and the District of Columbia has filed a similar case. Litigation accruals rose to $70.6 million. The company also reached a settlement in principle on a California late-fee class action, subject to court approval. Other risks include rent-control expansion, rising real estate taxes and utility costs, and interest rate exposure on the $0.8 billion of floating-rate debt. The company says none of the pending matters is expected to have a material adverse effect.
06—Continue