Dividend coverage appears structurally sound with a dividend-to-AFFO ratio averaging approximately 0.50 over the last two years, even as FFO-to-NI ratios as high as 4.45 suggest significant GAAP distortion.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 1.62B | 1.65B | 1.57B | 1.53B | 1.45B | 1.26B | 1.27B | 1.46B | 1.36B | 1.27B | 1.21B | 1.36B | 1.32B | 868.92M | 1.05B | 800.47M | 726.04M | 670.81M | 755.25M | 793.13M | 755.47M | 698.53M | 707.06M | 744.32M | 888.26M | 889.67M | 836.42M | 788.97M | 542.15M | 331.1M | 210.93M |
| Operating CF Growth % | 12.71% | 4.78% | 2.66% | 5.36% | 15.44% | -0.42% | -13.14% | 7.42% | 7.15% | 4.26% | -10.5% | 2.46% | 52.38% | -16.94% | 30.69% | 10.25% | 8.23% | -11.18% | -4.78% | 4.99% | 8.15% | -1.21% | -5.01% | -16.21% | -0.16% | 6.37% | 6.01% | 45.53% | 63.74% | 56.97% | 66.74% |
| Operating CF / Revenue % | 52.04% | 53.17% | 52.8% | 53.33% | 53.19% | 51.14% | 49.21% | 53.95% | 52.62% | 51.22% | 50.05% | 49.42% | 50.64% | 36.39% | 59.87% | 40.32% | 36.44% | 34.49% | 35.91% | 38.92% | 37.95% | 35.73% | 40.32% | 40.82% | 44.55% | 40.99% | 41.2% | 52.3% | 40.54% | 44.3% | 44.09% |
| Net Income | 953.58M | 1.12B | 1.07B | 868.49M | 807M | 1.4B | 962.5M | 1.01B | 685.19M | 628.38M | 4.48B | 908.02M | 658.5M | -131.15M | 332.93M | 108.71M | -1.97M | 382.03M | 436.41M | 989.62M | 1.07B | 861.79M | 472.33M | 543.85M | 421.31M | 473.58M | 549.45M | 393.9M | 258.2M | 176.6M | 101.62M |
| Depreciation & Amortization | 1.01B | 1.01B | 966.74M | 901.5M | 894.33M | 851.38M | 832.44M | 842.78M | 790.12M | 747.58M | 709.08M | 769.28M | 762.08M | 1.01B | 684.99M | 663.62M | 673.4M | 600.38M | 602.91M | 623.85M | 596.11M | 528.96M | 496.58M | 471.57M | 478.19M | 474.06M | 453.57M | 410.3M | 299.7M | 155.7M | 93.25M |
| Stock-Based Compensation | 26.2M | 0 | 31.29M | 31.82M | 29.51M | 27.81M | 23.17M | 24.45M | 27.13M | 25M | 30.53M | 34.61M | 27.54M | 35.47M | 24.83M | 21.18M | 18.88M | 17.84M | 22.31M | 21.63M | 22.08M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -287.04M | -528.03M | -534.53M | -271.17M | -271.38M | -1.05B | -478.54M | -449.49M | -171.79M | -122.26M | -3.96B | -321.7M | -187.05M | -64.95M | 37.04M | 17M | 39.94M | -294.93M | -274.08M | -869.38M | -897.35M | -681.1M | -257.33M | -250.36M | -53.42M | 25.89M | -106.38M | -168.03M | 27.25M | 0 | -646K |
| Working Capital Changes | 13.85M | 46.3M | 39.13M | 2.16M | -4.69M | 29.73M | -74.04M | 29.54M | 25.65M | -12.91M | -40.57M | -33.57M | 62.99M | 15.29M | -33.64M | -10.04M | -4.21M | -34.51M | -32.3M | 27.41M | -38.22M | -11.12M | -4.52M | -20.73M | 42.18M | -83.86M | -60.22M | 152.8M | -43M | -1.2M | 16.7M |
| Cash from Investing | -510.86M | -321.36M | -1.18B | -409.5M | 107.79M | -434.62M | 663.59M | -771.82M | -376.83M | -594.3M | 5.9B | -695.81M | -644.67M | -6.98M | -261.15M | -197.21M | -639.46M | 105.23M | -344.03M | -200.65M | -259.47M | -592.2M | -555.28M | 334.03M | -48.62M | 57.43M | -557.77M | -526.85M | -1.05B | -1.54B | -635.65M |
| Acquisitions (Net) | -105.32M | 0 | -109.72M | -47.87M | -159.7M | -79.79M | -5.78M | -9.6M | -6.57M | -6.03M | -5.27M | -23.02M | -15.77M | -4.07B | -5.29M | -2.02M | 0 | -4.96M | 3.01M | 245.48M | -699K | 3.19M | 26.55M | 20M | -40.11M | -297.79M | -625.8M | -18.27M | -50.14M | 0 | 0 |
| Purchase of Investments | 0 | 0 | 0 | -2.5M | -2.06M | -168.29M | -773K | -269K | 0 | 0 | -5.27M | -23.02M | -15.77M | -66.47M | -5.29M | -2.02M | 0 | -77.82M | -158.37M | 0 | -1.07M | -1.48M | -406.52M | -14.04M | -105.76M | -142.56M | -1.42B | -998.02M | -1.02B | 0 | 0 |
| Sale of Investments | 396.07M | 0 | 15.04M | 3.04M | 3.58M | 191.4M | 0 | 0 | 0 | 0 | 72.81M | 2.54M | 57K | 4.88M | 0 | 4.54M | 25M | 215.75M | 0 | 0 | 10.47M | 4.22M | 17.08M | 14.14M | 49.86M | 655K | 756.4M | 329.3M | 0 | 0 | 0 |
| Other Investing | -801.25M | -321.36M | -1.08B | -360.32M | 270.02M | -376.24M | 690.23M | -757M | -365.76M | -586.76M | 5.85B | -648.32M | -607.9M | 4.13B | -241.75M | -190.59M | -661.47M | 604.38M | 893.34M | 1.97B | 2.01B | 2.08B | 978.34M | 1.12B | 578.81M | 595.84M | 766.61M | 934.55M | 1.1B | -292.9M | 40.71M |
| Cash from Financing | -787.22M | -1.33B | -376.95M | -1.12B | -1.79B | -565.06M | -1.95B | -684.47M | -963.91M | -789.82M | -7.05B | -666.17M | -692.86M | -1.42B | -556.33M | -650.75M | 151.54M | -1.47B | 428.74M | -801.93M | -324.55M | -101.01M | -117.86M | -1.06B | -861.37M | -919.27M | -284M | -236.97M | 474.83M | 1.1B | 558.57M |
| Dividends Paid | -790.91M | -1.05B | -1.02B | -993.24M | -934.1M | -903.56M | -887.03M | -834.2M | -785.99M | -742.47M | -4.77B | -788.11M | -780.8M | -685.75M | -486.87M | -444.85M | -394.44M | -503.1M | -536.73M | -608.23M | -595.31M | -594.86M | -601.78M | -614.03M | -623.75M | -507.95M | -564.34M | -477.4M | -373.8M | -292.1M | -121.86M |
| Common Dividends | -789.85M | -1.05B | -1.02B | -990.15M | -931.78M | -900.47M | -883.94M | -831.11M | -782.12M | -739.38M | -4.77B | -784.75M | -776.66M | -681.61M | -473.45M | -432.02M | -379.97M | -488.6M | -522.2M | -581.22M | -555.97M | -543.59M | -601.66M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Debt Issuance (Net) | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | -1000K | 1000K | -1000K | -1000K | -1000K | 1000K | 1000K | -1000K | -1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K |
| Share Repurchases | -280.72M | -280.72M | -38.47M | -49.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -16.21M | -1.78M | 0 | -150.02M | 0 | -2.76M | -1.12M | -12.55M | -1.22B | -83.36M | -125.07M | -24K | -400.64M | -115M | -212.72M | -294K | -6.3M | -94.7M | -22.47M | -11.5M |
| Other Financing | -513.8M | -52.41M | -19M | 8.41M | -61.8M | 47.05M | -57.28M | -24.6M | -16.01M | -17.48M | -317.81M | 6M | 28.1M | -53.34M | -25.02M | -15.75M | 29.13M | -16.55M | -40.88M | 15.13M | 52.86M | -167.13M | -76.43M | -209.13M | -2.43M | -216.9M | 211K | -39.47M | -52.57M | -8.8M | 95.58M |
| Net Change in Cash | 17.31M | -1.31M | 20.17M | 2.82M | -223.06M | 260.51M | -17.27M | 686K | 15.55M | -118.33M | 63.97M | -5.35M | -13.45M | -559.06M | 228.67M | -47.49M | 238.12M | -697.51M | 839.96M | -209.45M | 171.45M | 5.32M | 33.93M | 19.7M | -21.73M | 27.83M | -5.34M | 25.1M | -29.3M | -114M | 133.84M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 0 | 160.17M | 140M | 137.17M | 360.24M | 99.73M | 117M | 116.31M | 100.76M | 219.09M | 155.12M | 160.47M | 53.53M | 612.59M | 383.92M | 431.41M | 193.29M | 890.79M | 50.83M | 260.28M | 88.83M | 83.5M | 49.58M | 29.88M | 51.6M | 23.77M | 29.12M | 4M | 33.3M | 147.3M | 13.43M |
| Cash at End | 0 | 158.85M | 160.17M | 140M | 137.17M | 360.24M | 99.73M | 117M | 116.31M | 100.76M | 219.09M | 155.12M | 40.08M | 53.53M | 612.59M | 383.92M | 431.41M | 193.29M | 890.79M | 50.83M | 260.28M | 88.83M | 83.5M | 49.58M | 29.88M | 51.6M | 23.77M | 29.1M | 4M | 33.3M | 147.27M |
| Free Cash Flow | 1.33B | 1.29B | 1.25B | 1.2B | 1.22B | 1.09B | 1.1B | 1.27B | 1.16B | 1.04B | 984.76M | 1.11B | 1.08B | 681.64M | 862M | 784.25M | 710.04M | 3.83M | -386.84M | -1.63B | -1.52B | 698.53M | 707.06M | 744.32M | 356.84M | 790.96M | 802.1M | 14.57M | -540.85M | -919.3M | -465.43M |
| FCF Growth % | 4.86% | 2.77% | 4.64% | -1.9% | 12% | -0.71% | -13.22% | 9.48% | 11.75% | 5.14% | -11.33% | 2.83% | 58.45% | -20.92% | 9.91% | 10.45% | 18419.51% | 100.99% | 76.23% | -7.09% | -317.57% | -1.21% | -5.01% | 108.59% | -54.89% | -1.39% | 5405.14% | 102.69% | 41.17% | -97.52% | -468.22% |
| FCF / Revenue % | 42.67% | 41.59% | 42.11% | 41.73% | 44.7% | 44.3% | 42.75% | 46.9% | 44.89% | 41.89% | 40.6% | 40.46% | 41.31% | 28.55% | 49.33% | 39.51% | 35.64% | 0.2% | -18.39% | -79.85% | -76.36% | 35.73% | 40.32% | 40.82% | 17.9% | 36.44% | 39.51% | 0.97% | -40.44% | -123.01% | -97.29% |
Legislative and Regulatory Exposure
Based on reported financial statements, EQR maintains a consistent dividend payout ratio, with the dividend-to-AFFO metric averaging approximately 0.50 over the last two years, suggesting a comfortable buffer that supports long-term distribution sustainability despite the inherent volatility of urban residential market cycles.
The company's ability to cover its dividend with AFFO remains a core strength, providing a significant margin of safety that protects shareholders from short-term earnings fluctuations. This payout ratio suggests that management retains sufficient capital to fund recurring property improvements without relying on external financing to maintain the dividend.
As indicated by the divergence between Net Income and FFO, EQR's reported earnings are heavily impacted by non-cash depreciation charges, with FFO-to-Net Income ratios frequently exceeding 1.5x, which highlights the necessity of using cash-based metrics to evaluate the company's actual operational performance.
The significant gap between GAAP Net Income and FFO underscores the capital-intensive nature of maintaining Class A residential assets. Investors should monitor this distortion closely, as it suggests that headline profitability figures may not accurately reflect the cash-generating capacity of the underlying property portfolio.
According to recent SEC filings, the relationship between FFO and GAAP operating cash flow shows periodic variance, with FFO-to-NI ratios reaching as high as 4.45 in 2026Q1, which may indicate that non-recurring items or timing differences in working capital are influencing reported earnings quality.
The volatility in the FFO-to-NI ratio warrants further investigation into the specific drivers of cash conversion. While the company appears to generate robust operating cash flow, the inconsistency in these metrics suggests that investors should be cautious when relying on quarterly FFO as a perfect proxy for cash-based performance.
Based on the provided data, EQR has maintained disciplined capital expenditure levels, with quarterly maintenance spending often remaining below $1 million, suggesting that the company's Class A portfolio does not currently require excessive reinvestment to sustain its competitive market position.
The relatively low level of recurring capex relative to FFO suggests that the company's assets are well-maintained and do not face immediate obsolescence risks. However, should these figures spike, it may indicate a need for more aggressive capital investment to combat rising competition in core urban markets.
Quick answers to the most common questions about buying EQR stock.
Equity Residential (EQR) generated $1.65B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Equity Residential (EQR) generated $1.29B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Equity Residential (EQR) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Equity Residential (EQR) returned $1.05B to shareholders via cash dividends and spent $280.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.