Skip to content
AnalystLens

Vivmark Residential 8-K Report, Financial Results (Apr 23, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed April 23, 2024
Period End
April 23, 2024
Security
VMRK
In the record · 2016–202610-K1110-Q328-K113

VMRK filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 113 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Mar ’18Mar ’18
  2. Leadership change8-K · Feb ’20Feb ’20
  3. Material agreement8-K · May ’22May ’22
  4. Material agreement8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed April 23, 2024. Cited figures are marked; the original filing is the authoritative source.

Equity Residential (EQR) reported first quarter 2024 results that beat internal expectations, led by same-store performance.

Diluted EPS was $0.77a, up 37.5% from $0.56, while FFO per share was $0.87 (up 2.4%) and Normalized FFO per share was $0.93 (up 6.9%). The EPS increase was driven mainly by higher property sale gains (net gain on sales of $188.2 million versus $100.2 million a year earlier), so investors should treat the normalized FFO figure as the better gauge of operating momentum. Same-store revenue rose 4.1%, same-store expenses rose 1.3%, and same-store NOI grew 5.5%.

Same-store physical occupancy reached 96.3%, and turnover fell to a record-low 8.6%. Blended lease rate growth was 1.6%, with new lease change at -2.2% and renewal rate achieved at 4.7%. Capital allocation included three dispositions (504 units, about $248.5 millionb at a 5.5% disposition yield) and buybacks of 652,452 shares for about $38.5 million at $58.95 per share.

Balance sheet metrics improved, with total debt to Normalized EBITDAre falling to 4.01x from 4.17x and net debt to Normalized EBITDAre at 3.97x. Management did not revise full-year 2024 guidance and issued Q2 2024 guidance of $0.92 to $0.96c for Normalized FFO per share. Management attributed the strength to healthy demand from affluent renters and limited new supply in coastal markets.

The company is also beginning construction on The Basin, a 440-unit project in suburban Boston with a $232.2 milliond budgeted cost. Risks to watch include New York City 421-a tax abatement burn-offs, which are contributing to real estate tax growth, and softer new-lease pricing in several expansion markets. Investors should also note that the press release is furnished, not filed, under Item 2.02.

02—Key points

Key Highlights

  1. Normalized FFO per share of $0.93 rose 6.9% year over year, while GAAP EPS of $0.77 rose 37.5%, largely due to higher property sale gains rather than operations.
  2. Same-store NOI grew 5.5%, driven by 4.1% same-store revenue growth and 1.3% expense growth, with expense efficiency reflected in a five-year expense CAGR of 3.1%.
  3. Same-store physical occupancy reached 96.3% and turnover fell to a record-low 8.6%, pointing to strong resident retention.
  4. Pricing momentum is mixed: blended rate growth was 1.6%, new lease change was -2.2%, and renewal rate achieved was 4.7%. April 2024 preliminary new lease change turned positive at 0.1%.
  5. Balance sheet strengthened, with total debt to Normalized EBITDAre improving to 4.01x from 4.17x and a weighted average debt rate of 3.69%.
  6. The company sold three properties for $248.5 million at a 5.5% disposition yield and repurchased about $38.5 million of common shares at $58.95 on average.
  7. Q2 2024 Normalized FFO guidance is $0.92 to $0.96 per share, and full-year 2024 guidance was reaffirmed, not revised.

03—Questions

Frequently Asked Questions

  1. Why did EPS rise 37.5% while FFO per share rose only 2.4%?

    The gap is mainly due to a $188.2 million net gain on property sales in Q1 2024, versus $100.2 million a year earlier. Sale gains flow into EPS but are excluded from FFO, so FFO better reflects recurring operating performance.

  2. What drove the strong same-store NOI growth?

    Same-store revenue rose 4.1%, with lease rate growth of 2.9% and vacancy gains of 0.4% contributing most. Expenses rose only 1.3%, held down by lower utilities and repairs and maintenance, partly offset by higher insurance and real estate taxes.

  3. Does the company expect the momentum to continue?

    Management reaffirmed full-year 2024 guidance and expects Q2 2024 Normalized FFO of $0.92 to $0.96 per share, with higher expected same-store NOI as the main driver. Management also cited positive demand dynamics ahead of the primary leasing season, though new lease pricing has been soft.

  4. What are the main risks highlighted in the release?

    The release points to rising real estate taxes from New York City 421-a abatement burn-offs, insurance premiums that remain elevated, and negative new-lease pricing in several expansion markets such as Denver and Other Expansion Markets. Forward-looking statements also cite general market conditions, job growth, construction costs, and new supply.

  5. How is the company deploying capital?

    EQR sold three properties for about $248.5 million at a 5.5% disposition yield and repurchased about $38.5 million of its shares. It also began construction on The Basin, a 440-unit project in suburban Boston with a $232.2 million budgeted cost, and has about $2.27 billion of revolver availability.

04—Continue

← View all 8-K filings