New York, Jan 9, 2026, 15:26 EST — Regular session
- Equity Residential shares fell about 3.8% in afternoon trading after a BMO Capital downgrade.
- BMO flagged softer conditions in big coastal rental markets and trimmed its price target.
- A three-property portfolio sale to JRK for $400 million added to the day’s focus.
Equity Residential shares were down 3.8% at $60.46 by 3:26 p.m. EST, underperforming the broader apartment REIT group after BMO Capital cut its rating to “market perform” from “outperform.” (Streetinsider)
The move lands on a day when rates-sensitive sectors were already on edge after fresh U.S. labor data showed payroll growth stayed soft in December and the unemployment rate eased to 4.4%. (Bureau of Labor Statistics)
Treasury yields were little changed after the report, with the 10-year hovering around 4.18%, but even small swings in long-term rates can move REIT valuations because they compete with bonds for income-focused money. (MarketWatch)
BMO analyst John Kim pointed to “softening fundamentals” in coastal markets where Equity Residential has exposure, naming Washington, D.C., New York City, Boston and Los Angeles, and flagged affordability pressure and rent-control and tax risks. The firm also said the stock looked fairly valued, citing an AFFO multiple — adjusted funds from operations, a common REIT cash-flow yardstick — of about 18 times versus peers near 18 times. (Investing.com)
Separate from the analyst call, JRK Property Holdings bought a three-property portfolio from Equity Residential for $400 million, a deal JRK said closed at the end of December. “We believe the multifamily sector has reached an inflection point,” JRK president Daniel Lippman said in a statement. (Commercial Observer)
The properties are in Seattle, Hoboken, New Jersey, and Los Angeles, and total more than 800 units, Multi-Housing News reported. (Multi-Housing News)
Other apartment landlords were also lower on the day, but less so: AvalonBay Communities fell about 2.5%, Essex Property Trust dropped 2.6%, UDR slid 1.8% and Mid-America Apartment Communities fell 2.3%.
Equity Residential closed at $62.87 on Thursday and remains about 17% below its 52-week high of $75.86, according to MarketWatch data. (MarketWatch)
Not everyone is leaning cautious. UBS raised its price target to $71 on Thursday and kept a buy rating, arguing 2026 could look more constructive for REITs as supply pressure eases and macro conditions stabilize, according to a note carried by The Fly. Still, rate moves can cut both ways for REITs, which tend to lag when yields rise. (TipRanks)
Next up, investors will key on Tuesday’s U.S. consumer price index report for December, a major input for rate expectations, and on Equity Residential’s next results window in early February; Nasdaq listings peg an estimated earnings date of Feb. 2. (Bureau of Labor Statistics)
