Equity Residential is a publicly owned real estate investment trust. The firm engages in the acquisition, development, ownership, management, and operation of multifamily properties. It primarily in invests in the markets of the United States. The firm primarily invests in major metropolitan areas and growing markets. It typically invests in properties of 1990 or newer. The firm also considers older properties with quality construction and desirable location and acquires renovation or repositioning opportunities. Equity Residential was founded in 1966 and is based in Chicago, Illinois with additional offices in Atlanta, Georgia; Denver, Colorado; Ft. Lauderdale, Florida; Stockton, California; San Ramon, California; Aliso Viejo, California; Valencia, California; Jacksonville, Florida ; Orlando, Florida; Tampa, Florida ; Wellesley, Massachusetts; Bloomington, Minnesota; Charlotte, North Carolina; Cary, North Carolina; Beaverton, Oregon; Austin, Texas; Houston, Texas; Plano, Texas; Vienna, Virginia; Tukwila, Washington; Redmond, Washington; and Scottsdale, Arizona.

Financial Industry Analysis

WikiWealth.com Industry Description: The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises… Read More. Also see the Industry Analysis Home Page.

WikiWealth.com Industry Analysis: During economic recessions, consumers and businesses tend to cut back on expenses and investments to save money during tough economic times. This includes bank loans, raise equity or debt, general spending and many other financial activities. Less spending decreases business revenue and eventually decreases the stock prices of financial services companies. During economic recoveries, consumers have a greater desire to spend money and make business investments. Higher spending increases business revenue and eventually increases stock prices. During longer economic expansions, financial services may actually increase faster than the general market due to large investments by companies and mergers and acquisitions between companies. Consumers have more confidence in the stock market and increase stock investments and private business investments. Over-investment leads to higher inflation and higher interest rates, which make it harder to obtain money.

Financial services companies are also affected by interest rates. The return on money lent minus the expense of borrowing money equals the profits for many financial services companies. When interest rates increase, this raises the expense of borrowing money. Generally, interest rates increase near the end of the expansion phase of the business cycle to slow the potential for inflation. Interest rates are generally lowest during recessions, because inflation risk is lowest and the government wants to encourage business investments by making money relatively cheap to obtain.

¹ Investment potential (margin of safety) is a weighted average of the discounted cash flow analysis (DCF), the enterprise value (EV) market multiple analysis, and the Warren Buffett investment analysis. WikiWealth obtains 80% of their quantitative investment potential from fundamental investment analysis.
² The weighted average cost of capital (WACC) analysis for the industry is a broad representation of the WACC for each individual company. A sub-industry WACC analysis offers both stability and accuracy for each individual company.

WikiWealth.com Profit Analysis: The best way to profit from financial service stock investments is to find the most undervalued investments (Wall Street and Main Street buy ratings) during economic recessions. Those investments should be undervalued (see Wall Street Analysis on left side), and have high Main Street Common Sense investment ratings (see Main Street Analysis on right side). Interest rates are also lowest during this time period, which decreases the cost of borrowing money for financial service companies.

When an economic recovery occurs, financial stocks tend to outperform the general stock market, because consumers and businesses quickly resume spending on items such as cars or business loans they wanted, but resisted obtaining during tougher economic times. Eventually financial stocks become overvalued, because profits and stock prices increase past their fair values. During the last stages of an economic business cycle, just before a recession, it is best to sell financial stocks, because they are likely to decrease in price. Interest rates are highest at the end of recessions to fight inflation by making money for banks more expensive. Expensive (overvalued) stocks with low Main Street Common Sense ratings should be sold at any time to invest in better stocks. Two buys ratings are the best and two sell ratings are the worst possible stock investments. For more information on stock research ratings click here.

Investment Moats

Investment Moats are fundamental investing theories developed by Warren Buffett and adapted to the SWOT analysis. Investment moats are general characteristics that separate great investments from average stock investments. The wider the investment moat the better. Read more: Investment Moats. For company-specific investment moats: SWOT Analysis.

SWOT Strengths Increase Investor Moats: Below is a list of relevant industry investment characteristics, if any exist

SWOT Weaknesses Decrease Investor Moats: Below is a list of relevant industry investment characteristics, if any exist

Stock Price Triggers

Triggers were developed by WikiWealth.com to predict changes in stock price direction, which depend on events outside of the control of the company. In general, if SWOT opportunities are greater than SWOT threats, the stock price should raise; the opposite is also true. For more precise measures, examine each SWOT opportunity and threat, then rank them according to importance and timing. The more important the investment characteristic, the greater the impact on stock direction. The sooner a investment trigger may occur, the more influence it will have on stock price direction. Read more: Stock Price Triggers. For company-specific stock price triggers: SWOT Analysis.

SWOT Opportunities are Positive Stock Price Triggers: Below is a list of relevant industry investment characteristics, if any exist.

SWOT Threats are Negative Stock Price Triggers: Below is a list of relevant industry investment characteristics, if any exist.

Long Company Description (help)

Equity Residential (EQR) is an S&P 500 company focused on the acquisition, development and management of high quality apartment properties in top U.S. growth markets. Equity Residential owns or has investments in more than 550 properties in 23 states and the District of Columbia.

We are building value for our shareholders, residents and employees by combining the resources of a large company and a national presence with strong local management and expertise. Shares of the company are traded on the New York Stock Exchange under the symbol, EQR. Equity Residential is a member of the S&P 500.

Acquisitions & Dispositions

As part of our strategy to build a comprehensive and diverse portfolio of properties that meets the housing needs of customers across the country, we are actively engaged in investment, divestiture and development activities in many markets.

Our capital resources and ability to use both regional and corporate staff to complete due diligence and close deals quickly when necessary,

Equity Residential seeks deals with the following characteristics:

Location and Size
Properties in major metropolitan areas and growing markets nationwide, typically including 200 units or more.

Asset Age
Prefer 1990 or newer, but we will consider older properties with quality construction and desirable location. Equity Residential will acquire renovation/repositioning opportunities.

Deal Structure and Size
Typically all-cash transactions, but we will consider assumption of existing financing or seller financing if the terms are favorable. As an UPREIT, Equity Residential is able to issue operating partnership units as an alternative to cash, providing the seller with tax deferment advantages. Single asset acquisitions to large portfolios. We are also actively seeking joint venture development and pre-sale opportunities. Please call for more information.

Submissions
Please contact the individual acquisitions officer responsible for each region listed on the "contact" section, or his / her assistant prior to sending any new submissions.

SWOT Analysis

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