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Essex Property
(NYSE:ESS)
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Rating:68Neutral
Price Target:
$324.00
â–²(10.41% Upside)
Action:Downgraded
Date:07/31/26
The score is driven primarily by mid-pack financial performance: steady revenue and positive cash generation are tempered by recent TTM earnings/FCF compression, lower ROE, and leverage risk. Trend signals are constructive with the stock above major moving averages, while valuation appears relatively expensive on P/E despite a decent dividend yield. The latest earnings call was a net positive due to raised guidance and strong balance-sheet positioning, partially offset by higher second-half expense expectations and regional demand headwinds.
Positive Factors
Balance Sheet & Liquidity
Essex reports conservative near-term funding risk with net debt/EBITDA of 5.4x, minimal maturities over the next 12 months and over $1 billion of liquidity. That combination preserves optionality to fund development, acquisitions or weather cyclical rent volatility without forced asset sales.
Negative Factors
Earnings & Free Cash Flow Compression
Trailing results show a marked decline in profitability and FCF, reflecting margin pressure or one-offs that materially reduce internal funding capacity. If sustained, lower FCF impairs reinvestment, dividend coverage, and the ability to pursue accretive development or acquisitions.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet & Liquidity
Essex reports conservative near-term funding risk with net debt/EBITDA of 5.4x, minimal maturities over the next 12 months and over $1 billion of liquidity. That combination preserves optionality to fund development, acquisitions or weather cyclical rent volatility without forced asset sales.
Read all positive factors
Essex Property Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights income from different business areas, showcasing which segments drive growth and profitability, and revealing strategic focus areas.
Highlights income from different business areas, showcasing which segments drive growth and profitability, and revealing strategic focus areas.
Data provided by:
The Fly
The FlyEssex Property (ESS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.88B
Dividend Yield3.63%
Average Volume (3M)447.90K
Price to Earnings (P/E)74.6
Beta (1Y)0.60
Revenue Growth4.74%
EPS Growth-48.36%
CountryUS
Employees1,689
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)3.81
Shares Outstanding64,268,440
10 Day Avg. Volume456,711
30 Day Avg. Volume447,899
Financial Highlights & Ratios
PEG Ratio-2.55
Price to Book (P/B)3.04
Price to Sales (P/S)8.88
P/FCF Ratio18.06
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$303.65Price Target Upside3.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)5.95
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 and fee income from its multifamily apartment portfolio. The largest revenue stream is residential rental income from leasing apartment units to tenants under typically month-to-month or short-term ...
Essex Property Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call emphasized stronger-than-expected operational performance, particularly in Northern California and Seattle, leading to upward revisions to same-property NOI and core FFO guidance and reflecting solid balance sheet flexibility. Offsetting headwinds include measured national job growth, muted Southern California demand (notably LA), higher second-half operating and controllable expenses, and some one-time benefits and legal settlement uncertainties. On balance, positive execution and upgraded guidance outweigh the outlined regional and macro risks.Positive Updates
Raised Full-Year Core FFO Guidance
Increased the midpoint of full-year core FFO per share by $0.20, a 1.3% increase at the midpoint, driven by better operating performance across the portfolio.
Negative Updates
Macroeconomic and Job Growth Headwinds
National economic and employment growth described as measured/modest; first-half U.S. job growth is lower than the same period last year, which tempers outlook for Southern California and overall portfolio performance.
Read all updates
Q2-2026 Updates
Positive
Negative
Raised Full-Year Core FFO Guidance
Increased the midpoint of full-year core FFO per share by $0.20, a 1.3% increase at the midpoint, driven by better operating performance across the portfolio.
Read all positive updates
Company Guidance
Essex raised its full‑year guidance, increasing the midpoint of core FFO per share by $0.20 (a 1.3% lift), driven principally by a 70‑basis‑point increase to same‑property NOI to a 2.8% midpoint; same‑property revenue assumptions improved 40 bps (scheduled rent +15 bps, other income +15 bps, occupancy +10 bps) while the midpoint for operating‑expense growth was lowered 25 bps (including $0.03 of one‑time property‑tax savings), with higher same‑property growth contributing $0.12 of the FFO upgrade and non‑same‑property outperformance providing the remainder. Q2 core FFO per share exceeded the prior midpoint by $0.10, third‑quarter core FFO is guided to $3.99 at the midpoint (a $0.09 sequential decline from Q2) due to seasonal utilities, California property taxes and an expected $0.09 increase in controllable spending in H2 versus H1, and management still expects full‑year blended lease growth of roughly 2.5% (1H 2.6%, implying ~2.4% in 2H). Balance sheet remains strong with net debt/EBITDA of 5.4x, minimal maturities over the next 12 months and over $1 billion of available liquidity.Essex Property Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
60
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.93B | 1.90B | 1.77B | 1.67B | 1.61B | 1.44B |
| Gross Profit | 1.35B | 1.31B | 1.21B | 1.14B | 1.11B | 1.21B |
| EBITDA | 1.28B | 1.56B | 1.63B | 1.19B | 1.20B | 1.50B |
| Net Income | 237.53M | 672.49M | 741.52M | 405.82M | 408.31M | 488.55M |
Balance Sheet | ||||||
| Total Assets | 12.90B | 13.16B | 12.93B | 12.36B | 12.37B | 13.00B |
| Cash, Cash Equivalents and Short-Term Investments | 158.51M | 183.66M | 136.59M | 479.54M | 146.04M | 240.25M |
| Total Debt | 0.00 | 6.90B | 6.65B | 6.27B | 6.03B | 6.36B |
| Total Liabilities | 7.39B | 7.42B | 7.18B | 6.74B | 6.45B | 6.79B |
| Stockholders Equity | 5.32B | 5.54B | 5.54B | 5.42B | 5.72B | 5.99B |
Cash Flow | ||||||
| Free Cash Flow | 500.89M | 934.08M | 931.91M | 839.69M | 812.46M | 784.06M |
| Operating Cash Flow | 576.79M | 1.07B | 1.07B | 980.06M | 975.65M | 905.26M |
| Investing Cash Flow | -232.39M | -552.48M | -973.05M | -145.14M | 145.96M | -397.40M |
| Financing Cash Flow | -326.70M | -512.20M | -419.74M | -477.27M | -1.14B | -533.26M |
Essex Property Technical Analysis
Negative
293.46
Price Trends
285.13
Negative
268.45
Positive
259.37
Positive
Market Momentum
3.31
Positive
56.12
Neutral
24.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESS, the sentiment is Negative. The current price of 293.46 is above the 20-day moving average (MA) of 293.34, above the 50-day MA of 285.13, and above the 200-day MA of 259.37, indicating a neutral trend. The MACD of 3.31 indicates Positive momentum. The RSI at 56.12 is Neutral, neither overbought nor oversold. The STOCH value of 24.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $24.92B | 28.77 | 8.08% | 4.11% | 4.22% | -13.36% | |
69 Neutral | $19.93B | 24.15 | 16.33% | 3.64% | 1.54% | 310.22% | |
68 Neutral | $18.88B | 74.58 | 4.33% | 3.52% | 4.74% | -48.36% | |
67 Neutral | $17.55B | 27.27 | 7.08% | 4.00% | 5.16% | 24.70% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $14.98B | 36.69 | 7.80% | 3.71% | 0.77% | 111.56% | |
60 Neutral | $15.79B | 38.70 | 7.46% | 4.56% | 0.85% | -29.53% |
* Real Estate Sector Average
ESS
Essex Property
284.14
39.35
16.08%
EQR
Equity Residential
66.45
6.48
10.81%
MAA
Mid-America Apartment
132.34
-1.41
-1.05%
UDR
UDR
38.16
1.67
4.57%
CPT
Camden Property
110.81
9.18
9.03%
INVH
Invitation Homes
29.72
0.81
2.80%
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.