Essex Property Trust (ESS)
NYSE:ESS
Want to see ESS full AI Analyst Report?
Top Page
Essex Property
(NYSE:ESS)
Select Model
Select Model
Rating:71Outperform
Price Target:
$300.00
â–²(17.66% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by strong underlying operating performance and a constructive earnings call with reaffirmed guidance and solid occupancy/liquidity. These positives are tempered by weakening profitability versus prior years and a sharp deterioration in TTM free-cash-flow growth, plus a premium valuation (high P/E) and somewhat extended technical momentum.
Positive Factors
Strong same-property revenue and high occupancy
Persistent same-property revenue growth and very high occupancy reflect durable demand in Essex's coastal portfolio. High occupancy reduces vacancy-driven volatility, supports steady rental cash flows, and underpins long-term FFO stability across leasing cycles in supply-constrained markets.
Negative Factors
Sharp deterioration in FCF growth and stepped-down earnings
A sharp negative swing in FCF growth and lower trailing net income point to weakening earnings quality or timing issues. This reduces cushion for discretionary capital uses, increases sensitivity to operational shocks, and raises concerns about sustained margin and cash conversion over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong same-property revenue and high occupancy
Persistent same-property revenue growth and very high occupancy reflect durable demand in Essex's coastal portfolio. High occupancy reduces vacancy-driven volatility, supports steady rental cash flows, and underpins long-term FFO stability across leasing cycles in supply-constrained markets.
Read all positive factors
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 (ESS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.27B
Dividend Yield3.98%
Average Volume (3M)465.66K
Price to Earnings (P/E)36.7
Beta (1Y)0.69
Revenue Growth5.27%
EPS Growth-14.94%
CountryUS
Employees1,712
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)8.90
Shares Outstanding64,262,860
10 Day Avg. Volume477,194
30 Day Avg. Volume465,661
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 Cap1.34
Enterprise Value/Revenue12.84
Enterprise Value/Gross Profit18.48
Enterprise Value/Ebitda16.95
Forecast
1Y Price Target
$283.03Price Target Upside11.01% Upside
Rating ConsensusHold
Number of Analyst Covering17
EPS Forecast (FY)5.76
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 primarily makes money by generating rental income from its multifamily apartment communities. The largest revenue stream is apartment rent paid by residents under lease agreements, which is recognized over the lease term. In addition to base...
Essex Property Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
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.Positive Updates
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.
Negative Updates
Los Angeles Underperformance and Slow Recovery
Los Angeles remains the most challenged market with slow, choppy improvement. Economic occupancy is close to but below the ~95% threshold management cites for stronger pricing power (reported above 94% but short of 95%). L.A. concessions are lumpy and higher than other regions.
Read all updates
Q1-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
Management reaffirmed its full‑year same‑property growth and core FFO per share guidance (targeting blended lease‑rate growth of ~2.5% for the year) after a strong Q1 in which core FFO beat the midpoint by $0.11 (Angela noted it exceeded guidance), same‑store revenues rose 2.9% YoY (50 bps ahead of plan, ~$0.04 of the beat), same‑property operating expenses were flat (another ~$0.04 benefit, timing‑related), and non‑same‑property/co‑investment NOI contributed ~$0.03; Q1 blended rent growth was 1.4% (Northern CA 3.2%, Seattle -0.8%, Southern CA ~1%), April blended was north of 3.0% (April new leases -0.9%, renewals ~5%), portfolio financial occupancy was 96.4% with a ~20 bps YoY occupancy gain, concessions ~6 days (vs ~4 days LY), controllable expense guidance ~2% for the year, net debt/EBITDA 5.5x with >$1B liquidity, ~$90M of structured‑finance redemptions expected in Q2 (a ~$0.07 second‑half FFO headwind but a pull‑forward of ’27–’28 maturities), and the company repurchased ~$62M of stock at an average $243.76 (FFO yield ~6.5%); given these factors management left the full‑year forecast unchanged pending peak‑leasing‑season visibility.Essex Property Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.91B | 1.90B | 1.77B | 1.67B | 1.61B | 1.44B |
| Gross Profit | 1.32B | 1.31B | 1.21B | 1.14B | 1.11B | 1.21B |
| EBITDA | 1.44B | 1.56B | 1.63B | 1.19B | 1.20B | 1.50B |
| Net Income | 575.56M | 672.49M | 741.52M | 405.82M | 408.31M | 488.55M |
Balance Sheet | ||||||
| Total Assets | 13.10B | 13.16B | 12.93B | 12.36B | 12.37B | 13.00B |
| Cash, Cash Equivalents and Short-Term Investments | 47.41M | 183.66M | 136.59M | 479.54M | 146.04M | 240.25M |
| Total Debt | 6.86B | 6.90B | 6.65B | 6.27B | 6.03B | 6.36B |
| Total Liabilities | 7.47B | 7.42B | 7.18B | 6.74B | 6.45B | 6.79B |
| Stockholders Equity | 5.44B | 5.54B | 5.54B | 5.42B | 5.72B | 5.99B |
Cash Flow | ||||||
| Free Cash Flow | 964.40M | 1.07B | 931.91M | 839.69M | 812.46M | 784.06M |
| Operating Cash Flow | 1.08B | 1.07B | 1.07B | 980.06M | 975.65M | 905.26M |
| Investing Cash Flow | -390.32M | -552.48M | -973.05M | -145.14M | 145.96M | -397.40M |
| Financing Cash Flow | -750.22M | -512.20M | -419.74M | -477.27M | -1.14B | -533.26M |
Essex Property Technical Analysis
Positive
254.97
Price Trends
254.45
Positive
253.33
Positive
253.77
Positive
Market Momentum
5.05
Negative
67.62
Neutral
89.07
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 254.97 is below the 20-day moving average (MA) of 266.05, above the 50-day MA of 254.45, and above the 200-day MA of 253.77, indicating a bullish trend. The MACD of 5.05 indicates Negative momentum. The RSI at 67.62 is Neutral, neither overbought nor oversold. The STOCH value of 89.07 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 120 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $19.86B | 14.56 | 14.90% | 4.81% | 2.15% | 312.38% | |
72 Outperform | $24.83B | 61.67 | 8.71% | 4.52% | 4.66% | -4.42% | |
72 Outperform | $17.33B | 23.46 | 6.15% | 4.30% | 3.66% | 65.23% | |
71 Outperform | $18.27B | 36.72 | 10.35% | 3.98% | 5.27% | -14.94% | |
67 Neutral | $15.54B | 28.59 | 6.78% | 4.42% | 0.77% | -31.36% | |
66 Neutral | $14.37B | 60.29 | 8.86% | 3.90% | 1.45% | 230.03% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
ESS
Essex Property
275.03
7.92
2.97%
EQR
Equity Residential
66.28
0.31
0.47%
MAA
Mid-America Apartment
130.26
-18.92
-12.68%
UDR
UDR
37.83
-0.96
-2.48%
CPT
Camden Property
106.29
-4.70
-4.24%
INVH
Invitation Homes
29.17
-3.03
-9.41%
Essex Property Corporate Events
Executive/Board ChangesShareholder Meetings
Essex Property Shareholders Back Directors, Auditor and Pay
Positive
May 14, 2026
On May 12, 2026, Essex Property Trust, Inc. held its annual meeting of stockholders, who elected nine directors to serve until the 2027 meeting, including Angela L. Kleiman and long-time chair George M. Marcus, with most nominees receiving strong ...
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.