Shares of Equity Residential EQR rose 1.3% in morning trading, to buck the weakness in its peer group and the broader stock market, after the residential real estate investment trust (REIT) raised its full-year earnings outlook, citing strong demand in New York. The company said late Tuesday that it now expects 2023 earnings per share of $2.02 to $2.12, up from previous guidance of $1.99 to $2.09. The company also raised its guidance ranges for normalized fund from operations (FFO) per share to $3.73 to $3.83 from $3.70 to $3.80, for year-over-year same-store revenue growth to 5.5% to 6.25% from 4.5% to 6.0% and for net operating income (NOI) growth to 6.0% to 7.0% from 4.75% to 6.25%, but trimmed its outlook for same-store physical occupancy to 96.0% from 96.2%. “his increase reflects continued strong demand across our markets, particularly New York, and lower than previously anticipated delinquency in Southern California,” said Chief Executive Officer Mark Parrell. “We are also benefiting from limited new apartment supply in most of our markets as well as the high prices and low availability of single family housing in these markets.” The stock’s gain comes as the Real Estate Select Sector SPDR exchange-traded fund XLRE slipped 0.3% and the S&P 500 SPX fell 0.6%.
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