Oct 28 (Reuters) - Equity Residential ( EQR ) reported a

rise in its third-quarter funds from operations on Tuesday,

driven by strong rental demand and relatively lower supply in

its key markets.

The Chicago, Illinois-based real estate investment trust,

which operates rental apartment properties across the United

States, counts the acquisition, development and management of

multifamily residential properties as its primary business.

"We continue to see a favorable outlook for our business

given the low levels of housing supply expected to be delivered

over the next several years, particularly in our Coastal

markets, powerful cost and social dynamics favoring rentership

and a customer base that remains well employed with rising

incomes," said CEO Mark Parrell.

On a diluted basis, Equity Residential ( EQR ) reported funds from

operations of $1.05 per share in the quarter ended September 30,

compared to 99 cents per share a year ago.

The company reported quarterly revenue of $782.4 million,

beating estimates of $781 million, according to data compiled by

LSEG.

Shares of the company rose marginally in after-hours

trading.