EQR Reports Higher 1Q Profits

Equity Residential, Chicago, has reported net income of $367.72 million ($1.25 per share) for the first quarter, up from $214.014 million ($0.74 per share) for the first quarter of 2005.The largest multifamily real estate investment trust by market capitalization, Equity Residential also reported funds from operations of $0.56 per share for the first quarter, down from $0.74 per share for the comparable period of last year. The REIT attributed the decline in FFO to income recognized in 2005 from the sale of EQR's interest in Rent.com, and gains from other sales activity that occurred in 2005. EQR said it expects a good year for the multifamily industry. "We continue to see good job growth and household formation across all of our markets," said David J. Neithercut, EQR's president and chief executive officer. "That, combined with little new supply, existing rental units taken off the market when converted to condominiums, and the rising cost of single-family homes, make for the strongest fundamentals we have seen in years."