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315 on A apartments
Uncertainty about international college students’ return to Boston and cutbacks by corporate extended-stay providers have pushed up vacancies in the portfolio of one of the city’s largest apartment landlords.
Equity Residential said second-quarter rents in Greater Boston averaged $3,174 and declined 9.6 percent from the previous year on a same-store basis, tied with San Francisco for the biggest decline among the company’s nine U.S. metro portfolios.
The Chicago-based multifamily REIT, which owns more than 6,300 apartment units locally, said its downtown Boston portfolio is currently 91.5 percent leased, compared to 95 percent of its local suburban portfolio.
The company reported second-quarter earnings per share of 70 cents, down from 83 cents during the same period in 2020. Funds from operations rose 6 cents to 86 cents per share.
In a conference call to discuss the company’s second-quarter financials, executives said the luxury apartment sector has remained insulated from the pressures on leasing and rent collection caused by the COVID-19 pandemic. Equity Residential collected 97 percent of rents during the quarter.
Executives said rents have been hit the hardest in its urban core markets including Boston, New York and San Francisco, which comprise about a quarter of its portfolio. But CEO Mark Parrell said the company’s long-term outlook on densely-populated, high-cost metros remains positive.
“We expect these cities will remain at the center of the knowledge economy and will continue to attract high income renters. The obituaries for the great urban centers have been written much too quickly,” Parrell said.
