Vivmark Residential Common Shares of Beneficial Interest (VMRK) Earnings

metirFinance

Sep 2026upcoming

Next quarter

Consensus is $1.03 EPS for Sep 2026 across 9 estimates, ranging $1.02 to $1.06.

VMRK Jun 2026

Reported Jul 22, 2026

: 0.99%
: -0.01%

: $1.01
: $1.02
: —
: —

Reported results

: $114.14M; from $192.36M
: $0.30; from $0.50

Highlights

Normalized FFO: Diluted normalized FFO was $1.02 per share, ahead of the $1.01 consensus expectation by 0.99%, up from $0.99 a year earlier and $0.99 in Q1 2026.
Same-store performance: Same-store revenue rose 1.9% year over year and 0.8% sequentially, while NOI increased 1.4% year over year and 2.6% from Q1.
Operating backdrop: Physical occupancy was 96.2%, versus 96.6% a year earlier and 96.4% in Q1; Q2 renewal rate achieved was 5.2%, producing a 2.8% blended rate.
Guidance: The company raised its full-year same-store revenue growth midpoint by 0.2 percentage points to 2.4% and its NOI growth midpoint by 0.3 points to 1.8%; expense guidance was unchanged at 3.0%-4.0%.
Merger: Equity Residential and AvalonBay are pursuing an all-stock merger of equals creating a company with approximately $53 billion of pro forma equity value, $71 billion of enterprise value and more than 180,000 apartments.
GAAP earnings: Diluted GAAP EPS was $0.30, down from $0.50 a year earlier and up from $0.24 in Q1, primarily reflecting the absence of prior-year property-sale gains.
Portfolio activity: The company sold two Los Angeles and San Francisco properties totaling 515 apartments for $164.0 million at a 5.3% disposition yield, acquired no properties and completed 809 development apartments.
Balance sheet: Total debt was $8.26 billion, with 89.7% fixed-rate debt, net debt at 4.28 times trailing normalized EBITDAre and $1.83 billion of revolving-credit availability.

Analysis

Equity Residential's second quarter was a modest operating beat set against a much more consequential corporate event. Diluted normalized FFO of $1.02 per share exceeded the $1.01 consensus by 0.99%, increased 3.0% from $0.99 in Q2 2025 and rose from $0.99 in Q1 2026. The underlying operating result improved sequentially: same-store NOI grew 2.6% from Q1 and 1.4% year over year, although 3.0% expense growth exceeded 1.9% revenue growth. Physical occupancy remained high at 96.2%, while renewal pricing strengthened to 5.2% and the blended rate reached 2.8%.\n\nGAAP earnings were less representative of the operating trend. Diluted EPS was $0.30, versus $0.50 a year earlier and $0.24 in Q1, as the quarter included a $16.7 million loss on property sales compared with a $58.3 million gain in the prior-year quarter. Management nevertheless raised the full-year same-store revenue and NOI guidance midpoints by 0.2 and 0.3 percentage points, respectively, citing San Francisco momentum and improved bad debt. The dominant feature of the print was the pending AvalonBay merger, which led the company to withdraw EPS, FFO and normalized FFO guidance and skip its earnings call.

Merger with AvalonBay

The quarter was reported under the shadow of the announced all-stock merger of equals with AvalonBay. The proposed combination would create a platform with more than 180,000 apartments, approximately $53 billion of pro forma equity market capitalization and $71 billion of enterprise value. Closing is expected in the second half of 2026, subject to shareholder approvals and other conditions; special meetings are scheduled for August 12.

Ownership: Legacy Equity Residential shareholders are expected to own approximately 49% of the combined company and legacy AvalonBay stockholders approximately 51%.
Leadership: Benjamin W. Schall will serve as president and CEO, while the combined board will have 14 members split evenly between the two companies.
Guidance impact: Equity Residential withdrew EPS, FFO per share and normalized FFO per share guidance because of the merger and provided no conference call, instead publishing a management presentation.
Financing: The company secured a commitment for up to $2.0 billion of senior unsecured bridge financing for potential transaction costs and debt refinancing; no amounts had been drawn by June 30.

Same-store operations

The operating portfolio continued to grow, but expense pressure limited conversion of revenue into NOI. Same-store revenue increased 1.9% year over year to $749.4 million, while expenses rose 3.0% to $239.9 million and NOI increased 1.4% to $509.5 million. Sequentially, revenue rose 0.8%, expenses fell 2.9% and NOI increased 2.6% to $523.4 million.

Demand: Physical occupancy was 96.2%, down from 96.6% a year earlier and 96.4% in Q1, but resident retention and occupancy remained historically strong.
Pricing: Q2 renewal rate achieved was 5.2%, new lease change was negative 0.7% and the blended rate was 2.8%, compared with 1.5% in Q1.
Revenue drivers: Residential same-store revenue growth of 2.1% included a 1.8% lease-rate contribution, a 0.2% benefit from lower bad debt and a 0.5% contribution from other income, partly offset by a 0.3% vacancy drag.
Markets: San Francisco was the clearest positive, with revenue up 7.0% and NOI up 11.0% year over year at 97.7% occupancy. Denver and Dallas/Austin remained weaker, with NOI down 7.7% and 1.8%, respectively.

Guidance and earnings

Management raised the outlook for the existing same-store portfolio despite a slightly lower occupancy assumption. The revised guidance is explicitly for Equity Residential as a standalone company and excludes the impact of the pending combination.

Revenue: Full-year same-store revenue growth guidance is now 2.1%-2.7%, versus 1.2%-3.2% previously; the midpoint increased 0.2 percentage points to 2.4%.
NOI: Same-store NOI growth guidance is now 1.5%-2.1%, versus 0.5%-2.5% previously; the midpoint increased 0.3 points to 1.8%.
Occupancy and expenses: Physical occupancy guidance moved to 96.3% from 96.4%, while expense growth remained 3.0%-4.0%.
Earnings quality: Normalized FFO increased because of a $0.02 per-share same-store NOI contribution, $0.01 from lease-up NOI and $0.02 from other items, partly offset by $0.01 of transaction activity and $0.01 of higher net interest expense.

Capital allocation

Transaction activity was selective as the merger redirected attention toward portfolio positioning and financing flexibility. Equity Residential sold older coastal assets while adding completed development units and continued investing in its existing communities.

Dispositions: Two properties totaling 515 apartments were sold for $164.0 million at a weighted-average 5.3% disposition yield. The sales generated a $16.7 million GAAP loss, contributing to the year-over-year EPS decline.
Development: The company completed a 440-unit consolidated project in suburban Boston at a total cost of approximately $232.2 million and a 369-unit unconsolidated project in suburban Seattle at approximately $185.3 million.
Capital spending: First-half capital expenditures to real estate were $154.3 million, including $94.6 million of recurring spending and $59.7 million of NOI-enhancing investment.
Share repurchases: The company repurchased and retired 3.46 million shares for $219.4 million during the first half at a weighted-average price of $63.42.

Balance sheet and liquidity

The balance sheet remained conservatively positioned for a residential REIT entering a large merger, although the company has meaningful near-term refinancing needs. Total debt declined sequentially from $8.34 billion at March 31 to $8.26 billion at June 30.

Leverage: Total debt to normalized EBITDAre was 4.32 times and net debt to normalized EBITDAre was 4.28 times, improving from 4.38 times and 4.35 times, respectively, in Q1.
Debt mix: Secured debt was $1.59 billion and unsecured debt was $6.67 billion; 89.7% of total debt was fixed rate at a 3.79% weighted-average rate.
Liquidity: The $2.5 billion revolving credit facility had $1.83 billion available after commercial paper and other restricted amounts.
Maturities: Debt due in 2026 totaled $1.27 billion, including approximately $668 million of commercial paper and $592 million of fixed-rate debt.

Vivmark Residential Common Shares of Beneficial Interest

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