Essex Property Trust ( (ESS) ) has released its Q4 earnings. Here is a breakdown of the information Essex Property Trust presented to its investors.
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Essex Property Trust, Inc., a real estate investment trust (REIT), specializes in acquiring, developing, and managing multifamily residential properties in West Coast markets. The company has reported notable financial performance for the fourth quarter and full-year 2024, with significant increases in net income driven by gains on real estate sales and remeasurements of co-investments.
In its latest earnings report, Essex Property Trust disclosed that net income per diluted share surged to $4.00 for the fourth quarter of 2024, marking a 292.2% increase compared to the same period in 2023. For the full year, net income reached $11.54 per diluted share, an 82.6% rise from 2023. The company’s core Funds from Operations (FFO) per diluted share also showed growth, climbing 2.3% in the fourth quarter and 3.8% for the full year, surpassing the high-end of its original guidance range.
The company achieved same-property revenue growth of 2.6% in the fourth quarter and 3.3% for the entire year, attributed primarily to favorable market conditions in Southern California. Essex also expanded its portfolio by acquiring or increasing its stake in 13 apartment communities for a total of $1.4 billion while disposing of one community for $252.4 million. Additionally, cash proceeds from structured finance investments reached $108.8 million in 2024, with a weighted average return rate of 10.4%.
Looking ahead, Essex Property Trust projects a steady performance for 2025, with expectations of same-property revenue growth between 2.25% and 3.75% and net operating income growth from 1.40% to 4.00%. The company’s management remains focused on strategic acquisitions and maintaining a strong financial position to navigate potential economic challenges in the coming year.
