Latest news with #EssexPropertyTrust
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a day ago
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Essex Property Trust Inc (ESS) Q2 2025 Earnings Call Highlights: Strong Core FFO Performance ...
Core FFO Outperformance: $0.07 above guidance in Q2 2025. Blended Rate Growth: 3% for the same store portfolio in Q2 2025. Same-Property Revenue Growth: Increased midpoint by 15 basis points to 3.15% for the full year. Same-Property Expense Reduction: Midpoint reduced by 50 basis points to 3.25% due to lower property taxes. Same-Property NOI Growth: Expected to grow 3.1% at the midpoint, a 40 basis point improvement from original guidance. Core FFO Per Share Guidance: Increased by $0.10 to $15.91 for the full year. Q3 Core FFO Guidance: Forecasted at $3.94 at the midpoint. Net Debt to EBITDA: 5.5 times. Available Liquidity: $1.5 billion. Term Loan: $300 million issued, $150 million drawn at 4.1% fixed rate through April 2030. Line of Credit: Expanded to $1.5 billion, maturity extended to 2030. Warning! GuruFocus has detected 9 Warning Signs with ESS. Release Date: July 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Essex Property Trust Inc (NYSE:ESS) reported a $0.07 core FFO outperformance in the second quarter. The company increased its same property and core FFO guidance for the year. Suburban markets like San Mateo and San Jose showed strong performance with 5.6% and 4.4% blended rate growth, respectively. Essex Property Trust Inc (NYSE:ESS) has successfully invested in Northern California, achieving yields in the mid to high 4% range. The company has enhanced its balance sheet flexibility with a $300 million delayed draw term loan and expanded line of credit. Negative Points Los Angeles underperformed with only 1.3% blended rent growth due to elevated supply and delinquency challenges. Southern California, which constitutes 40% of the portfolio, has been a drag on overall performance. The company expects a sequential decline in core FFO for the third quarter due to elevated operating expenses. Essex Property Trust Inc (NYSE:ESS) is scaling back its mezzanine platform, which could lead to temporary headwinds in core FFO growth. The company anticipates a deceleration in blended rent growth in the second half of the year due to normal seasonality. Q & A Highlights Q: Can you elaborate on the weaker blended pricing in Los Angeles and any specific impacts like fire ordinances? A: Angela Kleiman, CEO, explained that Los Angeles underperformed due to heavier supply in the first half and slower delinquency recovery, not due to fire ordinances. The soft demand environment in Southern California, mirroring the US economy, also contributed. However, supply is expected to decline in the second half, which should be beneficial. Q: What is driving the strength in Northern California, and is it being fully appreciated? A: Angela Kleiman noted that Northern California is performing slightly better than expected, with job postings gradually increasing. The blended lease rates, when considering all leases, show a stronger performance than reported. The seasonal peak for rents has been reached, and normal deceleration is expected unless there's a significant macroeconomic improvement. Q: Why is Essex scaling back its mezzanine platform despite a successful track record? A: CFO Barbara Pak stated that the mezzanine book had grown too large, creating earnings volatility. The focus is shifting to stabilized multifamily assets for better cash flow and NAV growth. The structured finance book is expected to be less than 4% of core FFO, with a reduction in earnings headwind anticipated as investments are repaid. Q: How are concessions in Los Angeles affecting the market? A: Angela Kleiman mentioned that concessions in Los Angeles remain elevated compared to the rest of the portfolio, slightly higher than last year. However, they are not dramatically worsening or improving. Q: What are the capital allocation priorities for Essex, and how does the commercial paper program fit in? A: Rylan Burns, CIO, emphasized that fee simple acquisitions are a top priority due to current cost of capital and development risks. The commercial paper program offers a 70 basis point savings over the line of credit and will be used similarly as a temporary bridge to permanent financing. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
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14-07-2025
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The Zacks Analyst Blog Highlights AvalonBay Communities, Equity Residential, Essex Property Trust and UDR
Chicago, IL – July 14, 2025 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AvalonBay Communities, Inc. AVB, Equity Residential EQR, Essex Property Trust, Inc. ESS and UDR, Inc. UDR. Here are highlights from Friday's Analyst Blog: The U.S. apartment market remained impressively resilient in the second quarter of 2025, absorbing more than 227,000 units between April and June, a robust second-quarter figure. According to RealPage data, annual absorption surpassed even the peak leasing surge of 2021 and early 2022, defying a backdrop of slowing job growth, weak business sentiment and broader economic uncertainty. This signals good for residential REITs like AvalonBay Communities, Inc., Equity Residential, Essex Property Trust, Inc. and UDR, Inc.. Elevated absorption suggests that the renter appetite for professionally managed apartments is holding firm despite broader macro uncertainty. While rent growth stayed muted, up just 0.19% in June, occupancy climbed steadily. At 95.6% in June, national occupancy rose 140 basis points year over year. Operators appear focused on maximizing occupancy, even if it means sacrificing rent increases. This "heads-in-beds" approach supports stability during a period of high new supply. However, with operators sharply focused on maximizing occupancy in the months ahead, the use of concessions is likely to increase, potentially masking underlying rent growth until those incentives phase out. Supply, though moderating, remains historically elevated. More than 535,000 units were completed in the past year, with roughly 108,000 delivered in the second quarter alone. Yet the market's ability to digest this volume underscores its underlying strength. Regionally, tech-driven markets like San Francisco and San Jose, as well as Boston and New York, gained momentum — likely aided by easing supply and increased return-to-office trends. Sun Belt markets, such as Dallas, Atlanta and Jacksonville, also showed signs of recovery in the second quarter, sustaining robust demand amid declining deliveries. Tourism-dependent cities, like Las Vegas, Orlando, and Nashville, faltered slightly, possibly reflecting softening discretionary spending. Supply-heavy markets like Austin, Phoenix and Denver continued to see the sharpest rent cuts. AvalonBay Communities: AVB has established itself as a leading player in the residential REIT sector, with a strong portfolio of high-quality apartment communities. The company's geographic diversification, focus on urban infill locations and disciplined capital allocation have positioned it favorably. In an operating update, AvalonBay disclosed that for the two months ended May 31, 2025, the company experienced a 3% year-over-year increase in same-store residential revenues, exceeding its internal projections by 35 basis points. Occupancy remains strong at 96.3%, ahead of the 96% experienced in the first quarter, and like-term effective rent change improved from 1.7% in the first quarter to 2.3% in April and May. AvalonBay is set to announce its second-quarter 2025 earnings on July 30, after market close. The Zacks Consensus Estimate of $761.75 million for second-quarter revenues suggests a 4.92% year-over-year increase. The Zacks Consensus Estimate for the quarterly core FFO per share of $2.80 implies year-over-year growth of 1%. Equity Residential: EQR boasts a portfolio of high-quality apartment units in some of the key markets of the United States with an affluent tenant base. Improving demand and limited resident turnover have helped sustain the occupancy level and driven rental rates higher, supporting same-store revenue growth in the first quarter of 2025. Per its investor update, physical occupancy remained strong and above the prior year in April and May. The high cost of home ownership is likely to keep renter demand up in its markets. The company's diversification efforts into the suburban markets to capture rising demand are encouraging. A focus on technology to drive margin expansion augurs well. Equity Residential is scheduled to release its second-quarter 2025 earnings on August 4, after market close. Currently, the Zacks Consensus Estimate for EQR's quarterly revenues stands at $769.26 million, indicating a 4.78% increase year over year. The Zacks Consensus Estimate for the quarterly normalized FFO per share of 99 cents suggests year-over-year growth of 2.1%. Essex Property Trust: This residential REIT's substantial exposure to the West Coast market has offered ample scope to enhance its top line. The West Coast is home to several innovation and technology companies that drive job creation and income growth. This region has higher median household incomes, an increased percentage of renters than owners and favorable demographics. Also, due to the high cost of homeownership amid still elevated interest rates, the transition from renter to homeowner is difficult, making renting apartment units a more flexible and viable option. Essex Property Trust is set to announce its second-quarter 2025 earnings results on July 29, after market close. The Zacks Consensus Estimate for quarterly revenues is currently pegged at $469.19 million. This suggests a 6.07% year-over-year rise. The Zacks Consensus Estimate for the quarterly core FFO per share of $3.99 also calls for year-over-year growth of 1.27%. UDR: This residential REIT is well-poised to benefit from its diversified portfolio with a superior product mix of A/B quality properties in the coastal and Sunbelt markets. Healthy demand for rental units in its markets amid favorable demographic trends is likely to benefit the company. Efforts to leverage technological moves to enhance operational efficiency and drive margin expansion augur well. UDR's May investor presentation highlighted that key operating metrics, across revenue and expense growth, were tracking above the midpoints of its full-year guidance. Occupancy remained strong at nearly 97%, and blended lease rate growth continued to improve sequentially heading into Q2. UDR is set to announce its second-quarter 2025 earnings results on July 30, after market close. The Zacks Consensus Estimate for quarterly revenues is currently pegged at $422.24 million. This indicates a 2.15% year-over-year rise. However, the consensus mark for FFO as adjusted per share of 62 cents calls for no change year over year. Currently, AvalonBay, Equity Residential, Essex Property Trust and UDR carry a Zacks Rank of 3 (Hold) each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AvalonBay Communities, Inc. (AVB) : Free Stock Analysis Report Equity Residential (EQR) : Free Stock Analysis Report United Dominion Realty Trust, Inc. (UDR) : Free Stock Analysis Report Essex Property Trust, Inc. (ESS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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14-07-2025
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NXRT vs. ESS: Which Stock Is the Better Value Option?
Investors looking for stocks in the REIT and Equity Trust - Residential sector might want to consider either NexPoint Residential Trust Inc. (NXRT) or Essex Property Trust (ESS). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits. Right now, NexPoint Residential Trust Inc. is sporting a Zacks Rank of #2 (Buy), while Essex Property Trust has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that NXRT has an improving earnings outlook. But this is only part of the picture for value investors. Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels. The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors. NXRT currently has a forward P/E ratio of 10.54, while ESS has a forward P/E of 17.98. We also note that NXRT has a PEG ratio of 1.76. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ESS currently has a PEG ratio of 5.97. Another notable valuation metric for NXRT is its P/B ratio of 2.29. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ESS has a P/B of 3.21. Based on these metrics and many more, NXRT holds a Value grade of B, while ESS has a Value grade of D. NXRT stands above ESS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NXRT is the superior value option right now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NexPoint Residential Trust, Inc. (NXRT) : Free Stock Analysis Report Essex Property Trust, Inc. (ESS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
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12-07-2025
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How Are Residential REITs Positioned in Q2 as Demand Stays Resilient?
The U.S. apartment market remained impressively resilient in the second quarter of 2025, absorbing more than 227,000 units between April and June, a robust second-quarter figure. According to RealPage data, annual absorption surpassed even the peak leasing surge of 2021 and early 2022, defying a backdrop of slowing job growth, weak business sentiment and broader economic signals good for residential REITs like AvalonBay Communities, Inc. AVB, Equity Residential EQR, Essex Property Trust, Inc. ESS and UDR, Inc. UDR. Elevated absorption suggests that the renter appetite for professionally managed apartments is holding firm despite broader macro rent growth stayed muted, up just 0.19% in June, occupancy climbed steadily. At 95.6% in June, national occupancy rose 140 basis points year over year. Operators appear focused on maximizing occupancy, even if it means sacrificing rent increases. This 'heads-in-beds' approach supports stability during a period of high new supply. However, with operators sharply focused on maximizing occupancy in the months ahead, the use of concessions is likely to increase, potentially masking underlying rent growth until those incentives phase though moderating, remains historically elevated. More than 535,000 units were completed in the past year, with roughly 108,000 delivered in the second quarter alone. Yet the market's ability to digest this volume underscores its underlying tech-driven markets like San Francisco and San Jose, as well as Boston and New York, gained momentum — likely aided by easing supply and increased return-to-office trends. Sun Belt markets, such as Dallas, Atlanta and Jacksonville, also showed signs of recovery in the second quarter, sustaining robust demand amid declining deliveries. Tourism-dependent cities, like Las Vegas, Orlando, and Nashville, faltered slightly, possibly reflecting softening discretionary spending. Supply-heavy markets like Austin, Phoenix and Denver continued to see the sharpest rent cuts. AvalonBay Communities: AVB has established itself as a leading player in the residential REIT sector, with a strong portfolio of high-quality apartment communities. The company's geographic diversification, focus on urban infill locations and disciplined capital allocation have positioned it favorably. In an operating update, AvalonBay disclosed that for the two months ended May 31, 2025, the company experienced a 3% year-over-year increase in same-store residential revenues, exceeding its internal projections by 35 basis points. Occupancy remains strong at 96.3%, ahead of the 96% experienced in the first quarter, and like-term effective rent change improved from 1.7% in the first quarter to 2.3% in April and is set to announce its second-quarter 2025 earnings on July 30, after market close. The Zacks Consensus Estimate of $761.75 million for second-quarter revenues suggests a 4.92% year-over-year increase. The Zacks Consensus Estimate for the quarterly core FFO per share of $2.80 implies year-over-year growth of 1%. Equity Residential: EQR boasts a portfolio of high-quality apartment units in some of the key markets of the United States with an affluent tenant base. Improving demand and limited resident turnover have helped sustain the occupancy level and driven rental rates higher, supporting same-store revenue growth in the first quarter of 2025. Per its investor update, physical occupancy remained strong and above the prior year in April and high cost of home ownership is likely to keep renter demand up in its markets. The company's diversification efforts into the suburban markets to capture rising demand are encouraging. A focus on technology to drive margin expansion augurs Residential is scheduled to release its second-quarter 2025 earnings on August 4, after market close. Currently, the Zacks Consensus Estimate for EQR's quarterly revenues stands at $769.26 million, indicating a 4.78% increase year over year. The Zacks Consensus Estimate for the quarterly normalized FFO per share of 99 cents suggests year-over-year growth of 2.1%.Essex Property Trust: This residential REIT's substantial exposure to the West Coast market has offered ample scope to enhance its top line. The West Coast is home to several innovation and technology companies that drive job creation and income growth. This region has higher median household incomes, an increased percentage of renters than owners and favorable due to the high cost of homeownership amid still elevated interest rates, the transition from renter to homeowner is difficult, making renting apartment units a more flexible and viable Property Trust is set to announce its second-quarter 2025 earnings results on July 29, after market close. The Zacks Consensus Estimate for quarterly revenues is currently pegged at $469.19 million. This suggests a 6.07% year-over-year rise. The Zacks Consensus Estimate for the quarterly core FFO per share of $3.99 also calls for year-over-year growth of 1.27%.UDR: This residential REIT is well-poised to benefit from its diversified portfolio with a superior product mix of A/B quality properties in the coastal and Sunbelt markets. Healthy demand for rental units in its markets amid favorable demographic trends is likely to benefit the company. Efforts to leverage technological moves to enhance operational efficiency and drive margin expansion augur well. UDR's May investor presentation highlighted that key operating metrics, across revenue and expense growth, were tracking above the midpoints of its full-year guidance. Occupancy remained strong at nearly 97%, and blended lease rate growth continued to improve sequentially heading into is set to announce its second-quarter 2025 earnings results on July 30, after market close. The Zacks Consensus Estimate for quarterly revenues is currently pegged at $422.24 million. This indicates a 2.15% year-over-year rise. However, the consensus mark for FFO as adjusted per share of 62 cents calls for no change year over how AVB, EQR, ESS and UDR have performed over the past three months. Price Performance Image Source: Zacks Investment Research Currently, AvalonBay, Equity Residential, Essex Property Trust and UDR carry a Zacks Rank of 3 (Hold) each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AvalonBay Communities, Inc. (AVB) : Free Stock Analysis Report Equity Residential (EQR) : Free Stock Analysis Report United Dominion Realty Trust, Inc. (UDR) : Free Stock Analysis Report Essex Property Trust, Inc. (ESS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
09-07-2025
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Here's What to Expect From Essex Property Trust's Next Earnings Report
Valued at a market cap of $18.4 billion, Essex Property Trust, Inc. (ESS) is a fully integrated real estate investment trust headquartered in San Mateo, California. The company acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. It is expected to announce its fiscal Q2 earnings for 2025 after the market closes on Tuesday, Jul. 29. Ahead of this event, analysts expect this residential REIT to report an FFO of $3.99 per share, up 1.3% from $3.94 per share in the year-ago quarter. The company has a solid trajectory of consistently beating Wall Street's FFO estimates in each of the last four quarters. In Q1, ESS' FFO per share of $3.97 outpaced the forecasted figure by 1.3%. Nvidia Scores Another Sovereign AI Win. How Should You Play NVDA Stock Here? Dear Amazon Stock Fans, Mark Your Calendars for July 8 Vanguard Just Bought More SoundHound Stock. Should You? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. For fiscal 2025, analysts expect ESS to report FFO of $15.94 per share, up 2.2% from $15.60 per share in fiscal 2024. Furthermore, its FFO per share is expected to grow 3.2% year-over-year to $16.45 in fiscal 2026. Shares of ESS have gained 4.7% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 11.7% rise and the Real Estate Select Sector SPDR Fund's (XLRE) 7.9% return over the same time frame. On Apr. 29, ESS released impressive Q1 results, prompting its share price to surge 1.5% in the following trading session. The company's same-property revenue improved 3.4% from the year-ago quarter, while its same-property net operating income rose 3.3% year-over-year to $284.9 million. Moreover, its core FFO of $3.97 per share advanced 3.7% from the same period last year and surpassed the consensus estimate by 1.3%. Looking ahead to fiscal 2025, ESS reaffirmed its core FFO per share guidance and expects it to be between $15.56 and $16.06. Wall Street analysts are moderately optimistic about ESS' stock, with a "Moderate Buy" rating overall. Among 26 analysts covering the stock, seven recommend "Strong Buy," two indicate "Moderate Buy," 15 suggest "Hold,' and two advise "Strong Sell' rating. The mean price target for ESS is $309.92, which indicates an 8.4% potential upside from the current levels. On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
