Essex Property (ESS)
NYSE:ESS
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Earnings Data
Report Date
Jul 23, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
1.46Last Year’s EPS
3.44Same Quarter Last Year
Based on 16 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a largely positive operational and financial picture: core FFO beat guidance, same-property revenues and blended rent growth trended ahead of plan, Northern California delivered strong outperformance, occupancy remains high (96.4% in April), and management executed accretive share repurchases while preserving a strong balance sheet (net debt/EBITDA 5.5x, >$1B liquidity). Challenges include slower performance in Los Angeles and Seattle, modestly higher concessions, timing-related expense reversals expected in the back half, and some earnings volatility and near-term headwinds from early structured finance redemptions and preferred investment uncertainties. Management reaffirmed guidance and emphasized selective, opportunistic capital allocation. On balance, the positive operational results, balance sheet strength, capital deployment, and reaffirmed guidance outweigh the manageable regional and timing-related headwinds, supporting a constructive outlook.Company Guidance
Core FFO Beat Guidance
Core FFO per share exceeded guidance (beat the midpoint by $0.11) and came in above the high end of the previously provided range, driving earnings outperformance for the quarter.
Same-Property Revenue and Rent Growth
Same-property revenues grew 2.9% year-over-year (50 basis points ahead of plan), contributing approximately $0.04 to the FFO beat. Blended same-store rent growth for the quarter was 1.4% and April blended lease rate growth was north of 3%.
Occupancy and Leasing Strength
Occupancy-focused strategy generated a 20 basis point year-over-year occupancy gain; April financial occupancy was 96.4%. Renewals remain sticky (~5% quoted renewal pricing) and April renewals were ~5% while new leases were about -0.9%, yielding a ~3.1% April blend.
Regional Outperformance in Northern California
Northern California led the portfolio with blended rent growth of 3.2% for the quarter and north of 5% in April; strong affordability and demand drivers noted. Northern CA rent-to-median income ratio ~21.5% vs 20-year average ~26%, indicating room for rent upside.
Transaction Market and Cap Rate Compression
Bay Area cap rates compressed ~50 basis points since 2024; cap rates across Essex markets remain in the mid-4% range. Essex invested ~$1.7 billion over the past two years ahead of cap rate compression, generating value for shareholders.
Share Repurchases
Repurchased approximately $62 million of stock at an average price of $243.76, representing an FFO yield of ~6.5%, as management sought to capture value while stock traded at a discount to private market implied cap rates.
Balance Sheet Strength and Liquidity
Repaid $450 million in unsecured bonds, reported net debt to EBITDA of 5.5x, and maintained over $1 billion in available liquidity, positioning the company with ample capital flexibility.
Guidance Reaffirmation and Early Structured Finance Redemption
Full-year same-property growth and core FFO per share guidance ranges were reaffirmed. Management expects approximately $90 million of early structured finance redemptions (Q2), which was incorporated into guidance assumptions.
Expense Control in Quarter
Same-property operating expense growth was essentially flat year-over-year in Q1 (accounted for ~$0.04 of the FFO beat); controllable expense full-year guidance remains ~2% (Q1 benefit noted as timing-related).
Improving Insurance Costs
Property insurance renewals completed in December yielded a healthy reduction in property insurance expense, indicating improvement in that segment of the insurance market.
ESS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
ESS Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 28, 2026 | $267.88 | $264.92 | -1.10% |
Feb 04, 2026 | $249.87 | $248.81 | -0.43% |
Oct 29, 2025 | $242.14 | $244.72 | +1.07% |
Jul 29, 2025 | $281.99 | $260.45 | -7.64% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Essex Property (ESS) report earnings?
Essex Property (ESS) is schdueled to report earning on Jul 23, 2026, After Close (Confirmed).
What is Essex Property (ESS) earnings time?
Essex Property (ESS) earnings time is at Jul 23, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ESS EPS forecast?
ESS EPS forecast for the fiscal quarter 2026 (Q2) is 1.46.