13 Most Profitable Real Estate Stocks Now

11. Equity Residential (NYSE:EQR)

Number of Hedge Fund Holders: 30

5 Year Net Income Growth: 5.13%

Equity Residential (NYSE:EQR) focuses on the acquisition, development, and management of residential properties located in dynamic cities that attract affluent long-term renters. The firm owns or has investments in 299 properties comprising 79,738 apartment units, with a strong presence in major cities including Boston, New York, Washington, D.C., Seattle, San Francisco, and Southern California, and a growing presence in Denver, Atlanta, Dallas/Ft. Worth and Austin.

Equity Residential started off in 1993 as a portfolio of about 20,000 apartment units positioned primarily in garden-style properties in the Midwest and South. The company’s high-quality, well-located apartment properties continue to capture a strong demand. The firm has positioned this portfolio of urban and suburban properties in places that attract a resident demographic that chooses to rent for lifestyle reasons and due to less housing affordability.

Equity Residential (NYSE:EQR) takes advantage of a general undersupply of housing for both renting and owning. Its markets have a high cost of single-family housing which creates a robust demand to rent. The firm’s apartment business also benefits from its prime demographic opting for marrying later and having children later than previous generations. The firm focuses on the affluent renter who is well employed with rising wages, a dynamic that supports rental growth.

During 2023, Equity Residential witnessed an all-time high same-store revenue growth of 5.6%. The company has been witnessing the same positive momentum in 2024. The second quarter highlight for the firm includes same-store revenue increasing by 2.9%. This revenue rise was motivated by strong demand and modest supply across the majority of the markets.

The firm is simultaneously unlocking growth opportunities since it recently agreed to acquire a $964 million apartment portfolio from Blackstone Real Estate. These properties are situated in Equity Residential’s expansion markets of Atlanta, Dallas/Ft. Worth and Denver, and are attractive to the firm’s higher-end renter demographic, thereby boosting its growth in these markets. Amidst favorable demographics complementing a strategically positioned and well-established portfolio, Equity Residential (NYSE:EQR) is poised to grow. The stock is held by 30 hedge funds, as of Q2 2024.