Essex Property (ESS)
NYSE:ESS
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Essex Property
(NYSE:ESS)
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Rating:72Outperform
Price Target:
$294.00
▲(15.31% Upside)
Action:ReiteratedDate:04/30/26
The score is driven primarily by solid financial performance (strong revenue growth and margins) tempered by softer earnings vs prior years and sharply weaker TTM free-cash-flow growth. Technicals are supportive with an uptrend in place, while valuation support comes mainly from the ~3.9% dividend yield (P/E not usable). The latest earnings call was a net positive with an FFO beat and reaffirmed guidance, partially offset by regional and structured-finance headwinds.
Positive Factors
Revenue & Profitability
Sustained TTM revenue growth (36.6%) alongside a ~30% net margin indicates a resilient operating model and strong cash-generating ability. Multi-year top-line momentum supports durable FFO and reinvestment capacity, aiding dividends, development, and portfolio maintenance through cycles.
Negative Factors
Meaningful Leverage
Leverage at ~1.2x debt-to-equity (and reported net debt/EBITDA ~5.5x) leaves Essex exposed to refinancing and interest-rate risk. For a capital-intensive REIT, this level of leverage limits financial flexibility for large acquisitions or development if cash flows weaken, raising stress under adverse scenarios.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Profitability
Sustained TTM revenue growth (36.6%) alongside a ~30% net margin indicates a resilient operating model and strong cash-generating ability. Multi-year top-line momentum supports durable FFO and reinvestment capacity, aiding dividends, development, and portfolio maintenance through cycles.
Read all positive factors
Essex Property (ESS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.66B
Dividend Yield3.98%
Average Volume (3M)475.08K
Price to Earnings (P/E)―
Beta (1Y)0.71
Revenue Growth5.27%
EPS Growth-14.94%
CountryUS
Employees1,712
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)1.65
Shares Outstanding64,477,130
10 Day Avg. Volume405,301
30 Day Avg. Volume475,076
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 Cap0.96
Enterprise Value/Revenue8.93
Enterprise Value/Gross Profit12.86
Enterprise Value/Ebitda11.79
Forecast
1Y Price Target
$276.73Price Target Upside8.53% Upside
Rating ConsensusHold
Number of Analyst Covering15
EPS Forecast (FY)5.79
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 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: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 | 962.35M | 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 | -536.82M | -512.20M | -419.74M | -477.27M | -1.14B | -533.26M |
Essex Property Technical Analysis
Positive
254.97
Price Trends
249.38
Positive
250.81
Positive
254.77
Positive
Market Momentum
1.21
Negative
61.00
Neutral
67.56
Neutral
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 above the 20-day moving average (MA) of 245.59, above the 50-day MA of 249.38, and above the 200-day MA of 254.77, indicating a bullish trend. The MACD of 1.21 indicates Negative momentum. The RSI at 61.00 is Neutral, neither overbought nor oversold. The STOCH value of 67.56 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $19.01B | 13.54 | 11.43% | 4.81% | 2.42% | 338.86% | |
72 Outperform | $17.66B | ― | 10.35% | 3.98% | 5.27% | -14.94% | |
71 Outperform | $16.83B | 28.97 | 6.20% | 4.30% | 2.42% | 76.63% | |
70 Outperform | $24.51B | 61.67 | 8.71% | 4.52% | 4.66% | -4.42% | |
69 Neutral | $15.47B | 36.36 | 7.64% | 4.42% | 0.83% | -15.54% | |
66 Neutral | $14.68B | 19.02 | 8.50% | 3.90% | 2.02% | 136.02% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
ESS
Essex Property
264.92
-8.57
-3.13%
EQR
Equity Residential
65.43
-2.16
-3.20%
MAA
Mid-America Apartment
129.71
-25.24
-16.29%
UDR
UDR
36.16
-4.49
-11.05%
CPT
Camden Property
105.32
-5.00
-4.53%
INVH
Invitation Homes
28.07
-5.60
-16.62%
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.