At ESS, based in San Mateo, CA, Q2 core FFO was up by 8.4% to $2.97 per diluted share, beating both Baird and consensus estimates. The REIT also increased its full-year guidance on net income, total FFO and core FFO.

Babin wrote that Baird analysts are “encouraged that, while Southern CA continues to disappoint from a demand growth standpoint, the Bay Area and Seattle continue to exceed management's expectations early this year.” He also predicted a stronger 2018” despite ESS management's caution on top-line growth for the second half of this year.

On Wednesday, Mid-America Apartment Communities (MAA) reported FFO of $1.48 per share, ahead of the Zacks consensus estimate of $1.45 per share but down from $1.54 per share in the year-ago period. Zacks noted that the Memphis-based company's quarterly results reflected growth in same-store NOI and rise in average effective rent per unit for the same-store portfolio.

Operating revenue of $382.8 million, up 40.6% from a year ago, was in line with the consensus.

Equity Residential (EQR) kicked off earnings season for apartment REITs on Tuesday, reporting Q2 FFO of 77 cents per share, in line with its guidance although a penny shy of the consensus estimate issued by Mizuho REITs. Chicago-based EQR reported FFO of $1.53 per share for the first half of the year, up about 11.7% year over year.

“Strong and steady demand for rental housing in our gateway, coastal markets continues to drive high occupancy, retention and renewal pricing despite elevated levels of new supply,” David J. Neithercut, EQR's president and CEO, said Tuesday. “We are pleased to now expect full-year same-store revenue growth towards the upper end of our original guidance driven by Seattle, San Francisco and New York City, which should meet our most optimistic projections for the year.” He added that the same-store growth, coupled with “slightly higher than expected expense growth,” positions same-store NOI growth to occur “in the upper half of our original range of expectations.”

Mizuho analysts wrote that Q2 was marked by “a predictably low level of external activity,” with one acquisition along with two dispositions totaling $219 million. However, they wrote, “most of the story hinges on the internal growth picture—both for EQR and its multifamily peers—as our thesis going into 2017 was that the internal growth declines of the past would find a floor sooner rather than later, and begin a pivot upward. And based on the EQR print, the early read on Q2 is that thesis is taking shape.”

Equity Residential

NEW YORK CITY—In a survey of the REIT landscape heading into second-quarter earnings season that was posted to Seeking Alpha earlier this week, analyst Dane Bowler of 2nd Market Capital Advisory Corp. summed up his feelings about multifamily trusts: “overall steady fundamentals with slow to moderate same-store growth. Healthy demand will be weakened by supply, particularly in top 25 MSAs. Location will be the primary desideratum of an apartment's success.” The first wave of Q2 reports from the major apartment REITs generally squares with this assessment.

Apartment Investment and Management Co., better known as Aimco (AIV), reported same-store NOI growth of 4.9% late Thursday afternoon, along with adjusted funds from operations of 51 cents per share, three cents ahead of the midpoint on its AFFO guidance for Q2. Prior to the earnings announcement, Zacks Investment Management pointed to AIV's “solid portfolio diversified both in terms of geography and high priced units,” and noted that the Denver-based company has been revamping that portfolio through dispositions and reinvestment of the proceeds. “This is likely to enhance the quality and expected growth rate of its portfolio” for Q2.

Also reporting on Thursday afternoon after the markets had closed were Camden Property Trust (CPT) and Essex Property Trust (ESS). Houston-based CPT's FFO of $1.15 per share beat the $1.14 projection of Baird Equity Research and the $1.13 per share consensus.

“We are directionally encouraged by Camden's Q2 print, driven by top-line growth hanging in despite elevated deliveries of new supply and what appears to be aggressive property expense management,” Baird's Drew T. Babin wrote in an investor note Thursday. “We note that full-year guidance would have been increased by $0.03 instead of narrowed on both ends if not for dilution from a possible sale of a student housing asset in Corpus Christi, TX” that may occur in Q4.

At ESS, based in San Mateo, CA, Q2 core FFO was up by 8.4% to $2.97 per diluted share, beating both Baird and consensus estimates. The REIT also increased its full-year guidance on net income, total FFO and core FFO.

Babin wrote that Baird analysts are “encouraged that, while Southern CA continues to disappoint from a demand growth standpoint, the Bay Area and Seattle continue to exceed management's expectations early this year.” He also predicted a stronger 2018” despite ESS management's caution on top-line growth for the second half of this year.

On Wednesday, Mid-America Apartment Communities (MAA) reported FFO of $1.48 per share, ahead of the Zacks consensus estimate of $1.45 per share but down from $1.54 per share in the year-ago period. Zacks noted that the Memphis-based company's quarterly results reflected growth in same-store NOI and rise in average effective rent per unit for the same-store portfolio.

Operating revenue of $382.8 million, up 40.6% from a year ago, was in line with the consensus.

Equity Residential (EQR) kicked off earnings season for apartment REITs on Tuesday, reporting Q2 FFO of 77 cents per share, in line with its guidance although a penny shy of the consensus estimate issued by Mizuho REITs. Chicago-based EQR reported FFO of $1.53 per share for the first half of the year, up about 11.7% year over year.

“Strong and steady demand for rental housing in our gateway, coastal markets continues to drive high occupancy, retention and renewal pricing despite elevated levels of new supply,” David J. Neithercut, EQR's president and CEO, said Tuesday. “We are pleased to now expect full-year same-store revenue growth towards the upper end of our original guidance driven by Seattle, San Francisco and New York City, which should meet our most optimistic projections for the year.” He added that the same-store growth, coupled with “slightly higher than expected expense growth,” positions same-store NOI growth to occur “in the upper half of our original range of expectations.”

Mizuho analysts wrote that Q2 was marked by “a predictably low level of external activity,” with one acquisition along with two dispositions totaling $219 million. However, they wrote, “most of the story hinges on the internal growth picture—both for EQR and its multifamily peers—as our thesis going into 2017 was that the internal growth declines of the past would find a floor sooner rather than later, and begin a pivot upward. And based on the EQR print, the early read on Q2 is that thesis is taking shape.”