Mark Parrell, president and CEO of Equity Residential (NYSE: EQR), participated in a video interview during Nareit’s REITworld: 2023 Annual Conference held Nov. 14-16 in Los Angeles.
Equity Residential expects to post funds from operations (FFO) growth this year of plus 7%, alongside a dividend increase of 6%. “We feel we really rewarded the shareholders. We’re 96% occupied, we’ve got a very affluent renter base in our apartments, which are mostly on the coasts and a little bit in the center,” Parrell said.
Looking toward 2024, Equity Residential is “very well-occupied, [with] not too much supply, so we feel really well-positioned," he added.
Parrell said the company has been talking with investors about Seattle and San Francisco, which account for about 26% of the company’s net operating income (NOI). He pointed to an improvement in the quality of life in both cities, as well as the potential for job growth in those markets from AI activity. “We should benefit from that…we do see this sight line to improvement.”
Meanwhile, Parrell discussed the role technology is playing at Equity Residential to manage expenses, improve processes, and enhance revenue.