Essex Property Trust misses Q4 net income estimates

Overview

• Real estate investment trust's Q4 net income fell due to prior year gains

• Core FFO per share grew 1.5% in Q4, driven by same-property revenue growth

• Company issued $350 mln of senior unsecured notes, maintaining strong liquidity

Outlook

• Essex expects 2026 net income per share between $5.55 and $6.05

• Company forecasts 2026 Core FFO per share between $15.69 and $16.19

• Essex anticipates same-property revenue growth of 1.70% to 3.10% in 2026

Result Drivers

• SAME-PROPERTY REVENUE GROWTH - Core FFO per share growth was driven by a 3.8% increase in same-property revenue compared to Q4 2024

• INVESTMENT ACTIVITIES - Acquired seven apartment communities and disposed of five, impacting overall financial results

• STRUCTURED FINANCE RETURNS - Received $189.8 mln from structured finance redemptions with a 9.8% return rate

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 19 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the residential reits peer group is "buy."

• Wall Street's median 12-month price target for Essex Property Trust Inc is $284.00, about 14.7% above its February 3 closing price of $247.59

• The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 38 three months ago

Press Release: ID:nBw9QL1sxa

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