EQR
Equity Residential
Is EQR Halal?
Multifamily residential ownership and leasing are generally permissible, but EQR's conventional mortgage, unsecured-note and commercial-paper debt fails the examined financial screens.
What You Should Know
Equity Residential's March 31, 2026 Form 10-Q reports $20,517.153 million of total assets, $8,339.506 million of total debt, $34.677 million of cash and $779.846 million of quarterly rental income. Those inputs produce debt/assets of 40.65%, liquidity of 0.17% and receivables plus cash/assets of 0.17%. Interest and other income was $2.238 million, a conservative upper bound equal to 0.29% of rental income. Residential rental activity is generally permissible, but the conventional REIT financial structure fails the examined asset-based debt limits. This is a current ZakatInvest calculation, not an index-membership claim.
⚠️ Concerns
- •Debt/assets of 40.65% fails the examined 33% limits even though liquidity and receivables-plus-cash ratios are low
- •Debt is incurred by the Operating Partnership and includes mortgage notes, unsecured notes and line-of-credit/commercial-paper balances
- •Interest and other income includes mortgage interest and other items and is not a pure interest-income disclosure
- •Non-residential activities were less than 4% of revenues but no universal prohibited-revenue numerator is disclosed
- •REIT distributions and rental income after conventional interest expense require scholar-specific review
- •Market-cap denominator methods are not calculated without a licensed historical market-cap series
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.
8,339.506 / 20,517.153
34.677 / 20,517.153
34.677 / 20,517.153
2.238 / 779.846
- Financial
- Fails
- Overall
- Fails
Debt is 40.65%, above the examined 33.333% asset-based limit. Liquidity is 0.17%, receivables plus cash are 0.17% and the interest-income upper bound is 0.29%, but the debt failure controls the financial result.
- Financial
- Fails
- Overall
- Fails
Debt is 40.65%, above the examined MSCI total-assets limit; liquidity and receivables plus cash pass. This is a calculation against the named method, not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt is 40.65%, above the examined 33% limit; other entered ratios pass. This is a calculation against SAC ratios, not an official classification of a U.S.-listed security.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible historical market-cap series is not stored, so these methods are not estimated from a current spot price.
Business-activity disclosure
Equity Residential acquires, develops and manages multifamily residential properties and earns rental and related income through apartment leasing. Residential real-estate ownership and leasing are generally permissible at the activity level.
Limitation: The filing does not provide a universal prohibited-revenue numerator for ancillary, non-residential or mortgage-receivable income, nor a scholar-specific treatment of REIT distributions funded after conventional interest expense.
Purification
The financial debt screen fails, while interest and other income is only a conservative upper bound and no universal prohibited-revenue numerator or scholar-approved purification percentage is asserted.
Inputs, assumptions and primary sources
- Inputs use Equity Residential's March 31, 2026 Form 10-Q; amounts are USD millions.
- Assets use reported total assets of $20,517.153 million. Cash and cash equivalents were $34.677 million; restricted deposits are not treated as freely available cash.
- Debt uses total debt, net of $8,339.506 million, comprising mortgage notes payable, unsecured notes and line-of-credit/commercial-paper balances. Operating lease liabilities are not silently added.
- No separately disclosed interest-bearing securities or accounts-receivable balance is entered; EQR's balance sheet does not present a general accounts-receivable line suitable for this screen.
- Quarterly rental income was $779.846 million. Interest and other income was $2.238 million and includes mortgage interest and other items; it is used as a conservative upper bound, not asserted to be pure interest income.
- The filing states EQR's primary business is acquisition, development and management of multifamily residential properties; non-residential activities were less than 4% of total revenues, but no universal prohibited-revenue numerator is disclosed.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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