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:72Outperform
Price Target:
$307.00
â–²(20.41% Upside)
Action:Reiterated
Date:05/30/26
The score reflects strong technical trend and a constructive earnings-call backdrop (FFO beat, high occupancy, reaffirmed guidance, solid liquidity), balanced against softer recent profitability/cash-flow momentum (notably negative TTM free cash flow growth) and a relatively high P/E that limits valuation support despite a ~3.7% dividend yield.
Positive Factors
High occupancy and leasing
Sustained ~96% financial occupancy and sticky renewal pricing underpin durable rental cash flows and pricing power. High occupancy reduces turnover costs, stabilizes revenues and margins across leasing cycles, and supports long‑term FFO and dividend coverage in supply‑constrained coastal markets.
Negative Factors
Weak free cash flow momentum
A large negative swing in FCF growth signals volatile cash conversion driven by higher spending, timing or working capital shifts. If this trend persists it can constrain dividend support, slow reinvestment or force higher external financing, reducing durable financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
High occupancy and leasing
Sustained ~96% financial occupancy and sticky renewal pricing underpin durable rental cash flows and pricing power. High occupancy reduces turnover costs, stabilizes revenues and margins across leasing cycles, and supports long‑term FFO and dividend coverage in supply‑constrained coastal 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
$18.64B
Dividend Yield3.98%
Average Volume (3M)507.17K
Price to Earnings (P/E)31.8
Beta (1Y)0.64
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. Volume514,163
30 Day Avg. Volume507,172
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 Cap1.30
Enterprise Value/Revenue12.75
Enterprise Value/Gross Profit18.37
Enterprise Value/Ebitda16.60
Forecast
1Y Price Target
$287.09Price Target Upside12.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)5.86
Revenue Forecast (FY)$1.95B
Essex Property Business Overview & Revenue Model
Company Description
Essex Property Trust, Inc., a prominent S&P 500 constituent, operates as a vertically integrated real estate investment trust (REIT). The company focuses on the purchase, construction, renovation, and ongoing management of residential apartment co...
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 | 1.47B | 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
266.14
Positive
257.61
Positive
256.02
Positive
Market Momentum
5.03
Positive
63.28
Neutral
62.97
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 below the 20-day moving average (MA) of 277.94, below the 50-day MA of 266.14, and below the 200-day MA of 256.02, indicating a bullish trend. The MACD of 5.03 indicates Positive momentum. The RSI at 63.28 is Neutral, neither overbought nor oversold. The STOCH value of 62.97 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 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $20.53B | 26.27 | 14.90% | 4.81% | 2.15% | 312.38% | |
75 Outperform | $24.97B | 26.53 | 8.71% | 4.52% | 4.66% | -4.42% | |
72 Outperform | $18.64B | 31.78 | 10.35% | 3.98% | 5.27% | -14.94% | |
70 Outperform | $17.49B | 30.87 | 6.15% | 4.30% | 3.66% | 65.23% | |
67 Neutral | $15.47B | 31.06 | 8.86% | 3.90% | 1.45% | 230.03% | |
66 Neutral | $16.48B | 41.53 | 6.78% | 4.42% | 0.77% | -31.36% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
ESS
Essex Property
283.75
10.27
3.75%
EQR
Equity Residential
67.34
1.42
2.15%
MAA
Mid-America Apartment
138.93
-4.33
-3.03%
UDR
UDR
39.40
0.05
0.14%
CPT
Camden Property
114.98
3.42
3.07%
INVH
Invitation Homes
29.68
-2.48
-7.71%
Essex Property Corporate Events
Business Operations and Strategy
Essex Property Trust Announces Investor Presentation for Shareholders
Positive
May 29, 2026
On June 3, 2026, Essex Property Trust, Inc. planned to meet with investors to deliver an investor presentation outlining information relevant to its business and financial position. The company made a soft copy of the presentation available for do...
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.