Daniel Tucker's questions to Equity Residential (EQR) leadership • Q3 2024
Question
Speaking for Nick Yulico, Daniel Tucker asked how Equity Residential underwrites rent growth for new acquisitions in high-supply markets to make the IRR calculations work. He also requested high-level thoughts on the upcoming election and key legislative variables.
Answer
CIO Alex Brackenridge explained their underwriting assumes flat to slightly down rent growth in the first two years, offset by operating efficiencies, followed by outsized growth in years three and four. CEO Mark Parrell commented that state and local issues like California's Prop 33 are most impactful, while the federal election influences GSEs, HUD, and budget priorities.