Essex Property (ESS)
NYSE:ESS
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Essex Property
(NYSE:ESS)
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Rating:69Neutral
Price Target:
$279.00
â–²(10.76% Upside)
Action:ReiteratedDate:02/21/26
ESS scores strongest on underlying financial performance, led by durable cash flow generation and solid operating margins, partially tempered by higher leverage and softer 2025 earnings. Earnings call takeaways were net positive on operations, liquidity, and favorable supply dynamics, but flat 2026 core FFO/share guidance and localized leasing softness limit upside. Technical signals are neutral and the valuation is mixed—supported by a ~4% yield but not clearly inexpensive on P/E.
Positive Factors
Cash Generation
Consistent, substantial operating cash flow and year-over-year free cash flow expansion underpin durable funding for dividends, maintenance capex and opportunistic acquisitions. High cash conversion (FCF/net income = 1.0) improves resilience to cyclical rent fluctuations and supports capital allocation discipline over coming years.
Negative Factors
Elevated Leverage
Rising leverage increases sensitivity to interest-rate moves and refinancing cycles, limiting financial flexibility. A higher debt-to-equity ratio constrains balance-sheet optionality for acquisitions or development, and magnifies earnings volatility if funding costs rise or capital markets tighten over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Consistent, substantial operating cash flow and year-over-year free cash flow expansion underpin durable funding for dividends, maintenance capex and opportunistic acquisitions. High cash conversion (FCF/net income = 1.0) improves resilience to cyclical rent fluctuations and supports capital allocation discipline over coming years.
Read all positive factors
Essex Property (ESS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.79B
Dividend Yield3.98%
Average Volume (3M)484.12K
Price to Earnings (P/E)25.1
Beta (1Y)0.73
Revenue Growth6.92%
EPS Growth53.76%
CountryUS
Employees1,712
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)1.25
Shares Outstanding64,475,510
10 Day Avg. Volume420,543
30 Day Avg. Volume484,119
Financial Highlights & Ratios
PEG Ratio-2.54
Price to Book (P/B)3.04
Price to Sales (P/S)8.88
P/FCF Ratio15.70
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue12.07
Enterprise Value/Gross Profit17.54
Enterprise Value/Ebitda15.87
Forecast
1Y Price Target
$276.36Price Target Upside9.71% Upside
Rating ConsensusHold
Number of Analyst Covering15
EPS Forecast (FY)5.77
Revenue Forecast (FY)$1.95B
Essex Property Business Overview & Revenue Model
Company Description
Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has owner...
How the Company Makes Money
Essex Property generates revenue primarily through rental income from its multifamily residential properties. The company leases apartments to tenants, which provides a steady income stream. Additionally, Essex benefits from property appreciation,...
Essex Property Key Performance Indicators (KPIs)
Any
Net Operating Income
Reflects the company's profitability from core operations, excluding non-operating items, providing insight into operational efficiency and financial health.
Reflects the company's profitability from core operations, excluding non-operating items, providing insight into operational efficiency and financial health.
Data provided by:
The Fly
The FlyEssex Property Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call communicated solid operational execution in 2025 with notable outperformance in same-property revenue, high occupancy (96.3%), strong Northern California recovery, robust transaction activity (+43% YoY) and a healthy balance sheet with >$1.7B liquidity. Headwinds include a conservative 2026 FFO outlook (flat) driven by structured finance redemptions (1.8% drag), localized softness (Seattle, some Southern CA submarkets), a negative Q4 new-lease reading (-2.4%), and a pause in development starts due to current land and cost economics. On balance, the positive operating results, favorable supply outlook (supply -20% YoY), NAV appreciation from prior Northern California acquisitions, and strong liquidity and capital allocation discipline materially outweigh the near-term and localized challenges.Positive Updates
Full-Year Same-Property Revenue Outperformance
Same-property revenue growth of 3.3% for full-year 2025 (at the high end of guidance and ~30 basis points above original projections), driven by lower concessions, higher occupancy and other income.
Negative Updates
2026 Core FFO Per Share Guidance Flat
Core FFO per share is expected to be flat year-over-year in 2026, primarily due to a 1.8% headwind from recent and expected redemptions within the structured finance portfolio (company conservatively excluded redemption proceeds from guidance).
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Same-Property Revenue Outperformance
Same-property revenue growth of 3.3% for full-year 2025 (at the high end of guidance and ~30 basis points above original projections), driven by lower concessions, higher occupancy and other income.
Read all positive updates
Company Guidance
Essex’s 2026 guidance assumes steady demand with total new housing supply down ~20% YoY and West Coast blended rent growth above the U.S. average (comparable to 2025); at the midpoint management forecasts full‑year same‑property revenue growth of 2.4% (driven by an 85 bps earn‑in, 2.5% blended lease‑rate growth and ~30 bps from other income), same‑property expense growth of 3% (controllable +~2%, insurance down ~5% offset by higher utilities and property taxes), resulting in same‑property NOI growth of 2.1% at the midpoint, and core FFO/share flat YoY after a 1.8% headwind from structured‑finance redemptions (structured book ~$330M with $175M generating income in the guidance and 3‑year maturities); the company says free cash flow covers the dividend and planned capex/development, liquidity is ~ $1.7B, and downside vs. upside scenarios hinge on local hiring (low end if hiring remains muted; high end if hiring modestly improves), with Northern California expected to lead, then Seattle, then Southern California.Essex Property Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
63
Positive
Cash Flow
86
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.90B | 1.77B | 1.67B | 1.61B | 1.44B |
| Gross Profit | 1.31B | 1.21B | 1.14B | 1.11B | 1.21B |
| EBITDA | 1.56B | 1.63B | 1.19B | 1.20B | 1.50B |
| Net Income | 672.49M | 741.52M | 405.82M | 408.31M | 488.55M |
Balance Sheet | |||||
| Total Assets | 13.16B | 12.93B | 12.36B | 12.37B | 13.00B |
| Cash, Cash Equivalents and Short-Term Investments | 183.66M | 136.59M | 479.54M | 146.04M | 240.25M |
| Total Debt | 6.90B | 6.65B | 6.27B | 6.03B | 6.36B |
| Total Liabilities | 7.42B | 7.18B | 6.74B | 6.45B | 6.79B |
| Stockholders Equity | 5.54B | 5.54B | 5.42B | 5.72B | 5.99B |
Cash Flow | |||||
| Free Cash Flow | 1.07B | 931.91M | 839.69M | 812.46M | 784.06M |
| Operating Cash Flow | 1.07B | 1.07B | 980.06M | 975.65M | 905.26M |
| Investing Cash Flow | -552.48M | -973.05M | -145.14M | 145.96M | -397.40M |
| Financing Cash Flow | -512.20M | -419.74M | -477.27M | -1.14B | -533.26M |
Essex Property Technical Analysis
Positive
251.90
Price Trends
248.86
Positive
250.69
Positive
255.61
Negative
Market Momentum
-0.61
Negative
59.62
Neutral
85.59
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESS, the sentiment is Positive. The current price of 251.9 is above the 20-day moving average (MA) of 244.13, above the 50-day MA of 248.86, and below the 200-day MA of 255.61, indicating a neutral trend. The MACD of -0.61 indicates Negative momentum. The RSI at 59.62 is Neutral, neither overbought nor oversold. The STOCH value of 85.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESS.
Essex Property Risk Analysis
Essex Property disclosed 60 risk factors in its most recent earnings report. Essex Property reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Essex Property Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $22.95B | 21.34 | 10.14% | 4.52% | 4.78% | 24.74% | |
69 Neutral | $16.79B | 25.08 | 12.02% | 3.98% | 6.92% | 53.76% | |
68 Neutral | $15.11B | 36.36 | 7.64% | 4.42% | 0.91% | 6.55% | |
68 Neutral | $18.51B | 13.54 | 11.43% | 4.81% | 2.38% | 17.42% | |
66 Neutral | $14.12B | 31.03 | 8.50% | 3.90% | 1.41% | -21.93% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $15.73B | 28.97 | 6.10% | 4.30% | 6.82% | 27.91% |
* Real Estate Sector Average
ESS
Essex Property
251.90
-0.81
-0.32%
EQR
Equity Residential
60.80
-0.71
-1.16%
MAA
Mid-America Apartment
126.09
-22.36
-15.06%
UDR
UDR
35.02
-3.06
-8.04%
CPT
Camden Property
102.27
-1.54
-1.49%
INVH
Invitation Homes
25.81
-4.53
-14.93%
Essex Property Corporate Events
Private Placements and Financing
Essex Property Issues $350M Senior Notes
Neutral
Dec 12, 2025
On December 12, 2025, Essex Portfolio, L.P., the operating partnership of Essex Property Trust, Inc., issued $350 million in 4.875% senior notes due in 2036. This issuance is governed by an indenture with various restrictive covenants and is guara...
Business Operations and StrategyPrivate Placements and Financing
Essex Property Announces $350 Million Senior Notes Offering
Positive
Dec 4, 2025
On December 3, 2025, Essex Property Trust, Inc. and its operating partnership, Essex Portfolio, L.P., announced the pricing of a $350 million public offering of 4.875% senior notes due in 2036. The proceeds from this offering will be used to repay...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.