A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
In Q2 FY2026, Equity Residential reported Net Income of $114.14M (down 40.7% YoY) while announcing a landmark strategic merger of equals with AvalonBay.
EPS (Diluted)
$0.30
-40.00% YoY
Filed · Source: SEC EDGAR 10-Q filing
The company posted net income of $114.14M, down 40.7% from a year earlier, with diluted EPS of $0.30. EQR's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
EQR reported Q2 FY2026 net income of $114.14M (-40.7% YoY) alongside stable same-store operations and a major merger agreement with AvalonBay.
Last 4 quarters: 2 beats, 2 misses
Adjusted (non-GAAP) EPS of $0.31 versus the $0.45 analyst consensus — a -30.9% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.30.
On May 20, 2026, EQR entered into a Merger Agreement to combine with AvalonBay, where AvalonBay stockholders will receive 2.793 EQR Common Shares per share. The transaction is expected to close in the second half of 2026, subject to shareholder approvals.
Source: 10-Q Item 2 MD&A, p.40
During the six months ended June 30, 2026, EQR disposed of two consolidated properties in Los Angeles and San Francisco for $164.0M at a 5.3% yield. It also completed construction on two apartment communities in Boston (440 units, $232.2M cost) and Seattle (369 units, $185.3M cost).
Source: 10-Q Item 2 MD&A, p.40
For the six months ended June 30, 2026, Same Store rental income increased 2.0% YoY to $1.49B with a 96.3% physical occupancy rate and an average rental rate of $3,177. Same Store operating expenses rose 3.4% YoY to $486.1M due to higher real estate taxes and utilities.
Source: 10-Q Item 2 MD&A, p.41-42
YTD Operating Cash Flow was $702.40M, down 10.5% YoY due to higher interest payments, $58.7M paid towards litigation settlements, and Merger costs. Readily available liquidity remains strong at approximately $1.8B.
Source: 10-Q Item 2 MD&A, p.43-44
The pending Merger with AvalonBay is subject to shareholder approvals and closing conditions. Failure to complete the Merger could result in substantial termination fees of up to $1.005B, market share price declines, non-reimbursable transaction costs, and litigation.
Source: 10-Q Item 1A Risk Factors, p.49-50
The exchange ratio of 2.793 Common Shares per share of AvalonBay stock is fixed and will not adjust for stock price movements. Consequently, fluctuations in EQR stock prices will directly alter the implied value of the merger consideration.
Source: 10-Q Item 1A Risk Factors, p.49-50
Combining two large multifamily REIT platforms involves complex operational integration, potential loss of key personnel, and significant integration costs. Following the Merger, the combined company will hold significantly greater indebtedness, increasing interest rate risk and financial restrictions.
Source: 10-Q Item 1A Risk Factors, p.52-53
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
See the EQR earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Income | $114.14M | $192.36M | -40.66% |
EPS (Basic) | $0.30 | $0.51 | -41.18% |
EPS (Diluted) | $0.30 | $0.50 | -40.00% |
Consensus analyst estimates are not provided in the SEC filing. However, EQR reported Diluted EPS of $0.30 and Net Income of $114.14M for Q2 FY2026, with total property Net Operating Income (NOI) reaching $520.04M.
The primary takeaway was the definitive merger agreement to combine with AvalonBay in a merger of equals. Operationally, EQR maintained 96.3% physical occupancy across its same-store portfolio and preserved $1.8B in total liquidity.
EQR highlighted major risks associated with its pending AvalonBay merger, including potential failure to close, $1.005B termination fee exposure, a fixed share exchange ratio, complex platform integration, and higher combined debt levels.
Expected release date, analyst estimates & what to watch
EQR reported a sharp 64.9% YoY decline in net income to $90.1M in Q1 FY2026, primarily driven by lower gains on property dispositions compared to the prior year period, while operating cash flow remained solid at $400.5M.
EQR delivered solid FY2025 results with net income rising 8.1% to $1.12B and operating cash flow growing 4.8% to $1.65B, while significantly accelerating share buybacks to $280.7M, reflecting management's confidence in the company's financial position.
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