- Earnings Beat, Buybacks and Raised Guidance Might Change The Case For Investing In Essex Property Trust (ESS)
May 5, 2026
In the first quarter of 2026, Essex Property Trust reported higher revenue of US$484.76 million but lower net income of US$106.19 million, while also buying back 254,001 shares for US$61.91 million as part of a US$259.24 million repurchase program completed since October 2022. Soon after these results, Essex raised its 2026 net income guidance range and attracted positive analyst commentary highlighting improving West Coast apartment fundamentals, especially in the San Francisco Bay Area. Next, we’ll examine how Essex’s earnings beat and raised full-year guidance affect its investment narrative built around constrained West Coast supply.
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Essex Property Trust Investment Narrative Recap
To own Essex, you need to believe in the resilience of high quality West Coast apartments, where constrained new supply and stable occupancy support long term cash flows. The latest earnings beat and raised 2026 net income guidance modestly reinforce that story, but do not materially change the key near term catalyst, which is how quickly demand in softer markets like Los Angeles firms up. The biggest current risk remains Essex’s geographic concentration in heavily regulated, supply sensitive coastal cities.
The most relevant update is Essex’s decision to raise its 2026 net income per diluted share guidance to US$5.62 to US$6.12 after first quarter results. This higher range sits alongside continued share repurchases, including 254,001 shares bought back for US$61.91 million in early 2026, and keeps investor attention on whether improving Bay Area fundamentals can offset ongoing supply and regulatory pressures across the wider portfolio.
But while the near term story looks a little better, the concentration risk in California and Seattle is something investors should be aware of...
Read the full narrative on Essex Property Trust (it's free!)
Essex Property Trust's narrative projects $2.1 billion revenue and $435.2 million earnings by 2029.
Uncover how Essex Property Trust's forecasts yield a $278.13 fair value, a 5% upside to its current price.
Exploring Other PerspectivesESS 1-Year Stock Price Chart
Two Simply Wall St Community valuations span about US$278 to US$419 per share, underlining how far apart individual fair value views can be. You can weigh those against the risk that Essex’s concentrated West Coast footprint faces persistent local supply and regulatory pressures that may affect future performance.
Story Continues
Explore 2 other fair value estimates on Essex Property Trust - why the stock might be worth as much as 58% more than the current price!
The Verdict Is Yours
Don't just follow the ticker - dig into the data and build a conviction that's truly your own.
A great starting point for your Essex Property Trust research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision. Our free Essex Property Trust research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Essex Property Trust's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ESS.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- UDR Q1 FFOA Matches Estimates on Steady Occupancy, Revenues Miss
Apr 30, 2026
UDR, Inc. UDR reported first-quarter 2026 funds from operations as adjusted (FFOA) of 62 cents per share, in line with the Zacks Consensus Estimate. This also compared favorably with the prior-year quarter’s reported figure of 61 cents.
The quarter reflected rental rate gains, while expense growth weighed on same-store NOI.
Rental income of $423.32 million rose marginally year over year but came in below the consensus mark of $427.13 million.
UDR’s Same-Store Results Show Expense-Led NOI Pressure
Same-store revenues increased marginally from the year-ago quarter on a straight-line basis, supported by gains across several coastal markets. However, same-store expenses climbed 4.4%, pushing same-store NOI down marginally year over year and underscoring the impact of elevated operating costs.
Total revenues increased marginally year over year to $425.8 million, as growth from same-store and acquired communities more than offset the drag from dispositions. Joint venture management and other fees also contributed, supporting the modest top-line expansion.
Same-store effective blended lease rate increased 1.6% during the quarter, with the effective new lease rate dropping 2.4%. The effective renewal lease rate grew 5.2%.
The residential REIT’s weighted average same-store physical occupancy of 96.6% decreased 60 basis points (bps) year over year and 30 bps sequentially. Our estimate was pegged at 96.8%.
UDR Executes Asset Sales, Steps Up Buybacks
UDR continued to lean on portfolio recycling and share repurchases. During the quarter, the company completed the sale of four apartment communities totaling 1,159 homes for gross proceeds of $362.0 million. It also received approximately $138.9 million from the full repayment of two debt and preferred equity investments.
On the capital return front, UDR repurchased about 2.8 million shares at a weighted average price of $36.27 for roughly $100.0 million during the quarter. After quarter-end, it repurchased an additional 1.4 million shares at a weighted average price of $35.01 for about $50.0 million, bringing repurchases since September 2025 to approximately $268.0 million.
UDR’s Balance Sheet Holds Liquidity Above $1 Billion
UDR ended the quarter with approximately $1.1 billion of liquidity through cash and available capacity on its credit facilities. Total indebtedness was about $5.7 billion, carrying a weighted average interest rate of 3.4% and a weighted average maturity of 4.3 years, reflecting the benefits of a largely fixed-rate profile.
Leverage and coverage metrics remained supportive for an investment-grade multifamily REIT. Consolidated net debt-to-EBITDAre (adjusted for non-recurring items) was 5.6X, and consolidated fixed charge coverage (adjusted) measured 4.8X. The company also highlighted limited near-term maturities, with $355.0 million maturing through the rest of 2026, including principal amortization.
Story Continues
UDR Updates 2026 View, Shifts to Monthly Dividends
For second-quarter 2026, UDR guided FFOA per share to a range of 62-64 cents. The Zacks Consensus Estimate is currently pegged at 64 cents.
For full-year 2026, the company maintained its FFOA outlook of $2.47-$2.57 per share. Same-store revenue growth guidance remained 0.25%-2.25%, with same-store expense growth of 3.00%-4.50% and same-store NOI ranging from a decline of 1.00% to growth of 1.25%.
UDR also announced a change in dividend payment frequency from quarterly to monthly, beginning with the dividend payable in July 2026. The board declared second-quarter 2026 common dividends of $0.145 per share per month (totaling $0.435 for the quarter), implying an annualized dividend of $1.74 per share. The company positioned the shift as a way to align distributions with the timing of rental receipts and broaden appeal to investors seeking more frequent cash distributions.
UDR’s Zacks Rank
Currently, UDR carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Dominion Realty Trust, Inc. Price, Consensus and EPS SurpriseUnited Dominion Realty Trust, Inc. Price, Consensus and EPS Surprise
United Dominion Realty Trust, Inc. price-consensus-eps-surprise-chart | United Dominion Realty Trust, Inc. Quote
Performance of Other Residential REITs
Essex Property Trust Inc. ESS reported first-quarter 2026 core FFO per share of $4.06, beating the Zacks Consensus Estimate of $3.96 by 2.5%. The figure improved 2.3% from $3.97 in the year-ago quarter.
Results reflected favorable growth in same-property NOI and higher occupancy.
AvalonBay Communities AVB reported first-quarter 2026 core FFO per share of $2.83, surpassing the Zacks Consensus Estimate of $2.80.
AVB’s same-store economic occupancy held at 96.1%, underscoring steady demand heading into the peak leasing season. The quarter benefited from incremental development NOI and commercial NOI.
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.
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- INVH Q1 FFO Meets Estimates as Revenues Top on Homebuilding
Apr 30, 2026
Invitation Homes Inc. INVH reported first-quarter 2026 core funds from operations (FFO) per share of $0.48, in line with the Zacks Consensus Estimate. Core FFO was unchanged from the year-ago quarter.
Total revenues climbed 8.8% year over year to $734.11 million and beat the consensus mark by 6.58%. The quarter reflected firm operating momentum, with higher blended rentals and leasing trends improving in April.
INVH’s Revenue Beat Comes From a Broader Mix
The top-line outperformance was aided by growth in core property revenues and incremental contributions from homebuilding activities. Rental revenues increased to $597.70 million from $585.19 million a year ago, while other property income rose to $72.82 million from $67.88 million.
A notable change in the revenue mix was the addition of $43.75 million in homebuilding revenues, which was absent in the prior-year quarter. Management fee revenues declined year over year to $19.85 million from $21.41 million, but the combination of rental, other income and homebuilding supported overall revenue strength.
Invitation Homes Witnesses a Rise in Expenses
On the cost side, property operating and maintenance expenses increased 5.8% year over year to $251.13 million. The company also reported a higher interest expense of $95.31 million, up 13.1% from the prior-year quarter, reflecting a heavier financing cost backdrop.
INVH’s Same-Store Results Show Rent Resilience
Operationally, the Same-Store portfolio posted a 1.6% year-over-year increase in core revenues, aided by a 2.2% rise in the average monthly rent and a 10.3% jump in other income, net of resident recoveries. Those gains were partially offset by a moderation in occupancy versus the year-ago period. Same-store occupancy declined to 96.3% from 97.2% in the prior year period.
Leasing spreads remained mixed. Same-Store renewal rent growth was 3.7%, while Same-Store new lease rent growth was (3%), resulting in blended rent growth of 1.6%. Management noted preliminary April Same-Store blended rent growth of about 2.3%, including a return to positive new lease rent growth for the month.
Invitation Homes Accelerates Capital Returns and Sales
Capital allocation was active in the quarter. INVH repurchased 17,101,046 shares for approximately $439 million under its share repurchase program.
The company also leaned into home sales. It was a net seller of 222 wholly owned homes, generating net proceeds of about $116 million.
INVH’s Balance Sheet
Invitation Homes exited the first quarter of 2026 with total liquidity of $1.3 billion, including unrestricted cash and undrawn capacity on its revolving credit facility.
Story Continues
Secured and unsecured debt aggregated $8.87 billion as of March 31, 2026, and its Net Debt/TTM adjusted EBITDAre was 5.6X.
INVH Maintains Its 2026 Outlook and Key Assumptions
Invitation Homes maintained its previously disclosed full-year 2026 outlook. It continues to expect core FFO per share of $1.90-$1.98. The Zacks Consensus Estimate for the same is pegged at $1.94, which lies within the guided range.
Underlying assumptions call for Same-Store core revenues growth of 1.3%-2.5% alongside Same-Store core operating expenses growth of 3%-4%, implying Same-Store NOI growth of 0.3%-2%. The framework also includes planned capital recycling, with wholly owned dispositions projected at $450-$650 million and wholly owned acquisitions at $150-$350 million.
INVH’s Zacks Rank
Currently, INVH carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Invitation Home Price, Consensus and EPS SurpriseInvitation Home Price, Consensus and EPS Surprise
Invitation Home price-consensus-eps-surprise-chart | Invitation Home Quote
Performance of Other Residential REITs
Essex Property Trust Inc. ESS reported first-quarter 2026 core FFO per share of $4.06, beating the Zacks Consensus Estimate of $3.96 by 2.5%. The figure improved 2.3% from $3.97 in the year-ago quarter.
Results reflected favorable growth in same-property NOI and higher occupancy.
AvalonBay Communities AVB reported first-quarter 2026 core FFO per share of $2.83, surpassing the Zacks Consensus Estimate of $2.80.
AVB’s same-store economic occupancy held at 96.1%, underscoring steady demand heading into the peak leasing season. The quarter benefited from incremental development NOI and commercial NOI.
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.
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- MAA Q1 FFO Tops Estimates, Revenues Dip, Occupancy Declines
Apr 30, 2026
Mid-America Apartment Communities, Inc. MAA reported first-quarter 2026 core funds from operations (FFO) per share of $2.13, edging past the Zacks Consensus Estimate of $2.12. The metric declined 3.2% from a year ago.
Results reflected the same-store effective blended lease rate growth year over year, though lower occupancy marred the performance to an extent.
Rental and other property revenues rose marginally year over year to $553.73 million but missed the consensus mark of $555.97 million.
MAA’s Same-Store Math Shows Pressure on NOI & Improved Leasing
Same-store trends were mixed in the quarter. Same-store revenues declined 0.4% from the year-ago period, while expenses increased 1.3%, resulting in a 1.3% drop in same-store NOI. Average effective rent per unit slipped 0.3% to $1,685.
Leasing indicators suggested stabilization, though not a full rebound. In the first quarter of 2026, MAA’s same-store effective blended lease rate growth was -0.3%, improving 20 basis points year over year and 140 basis points sequentially. The sequential lift was driven by a 110-basis-point improvement in effective new-lease pricing and a 70-basis-point improvement in renewal pricing from the fourth quarter of 2025. The 7% decline in effective new-lease rates was partly offset by 5.4% growth in renewal pricing.
The average physical occupancy for the same-store portfolio in the first quarter was 95.5%, a decline of 10 basis points (bps) over the prior-year period. Our estimate was pegged at 95.7%.
As of March 31, 2026, resident turnover in the same-store portfolio remained historically low at 39.9%. This stemmed from low levels of move-outs related to buying single-family homes (11.1/%).
Interest expenses increased 13.8% year over year.
MAA’s Advanced Development and Lease-Up Activity
On the investment side, MAA completed two developments during the quarter: MAA Breakwater in Tampa, FL, and MAA Liberty Row in Charlotte, NC. As of March 31, 2026, the company had six active development projects totaling 1,788 units, with expected total costs of $622.5 million and $388.3 million spent to date.
Lease-up remained a meaningful swing factor. MAA ended the quarter with five lease-up communities totaling 1,843 units at 68.3% physical occupancy, with $633.2 million of costs incurred. The company also expanded its land pipeline, adding parcels in Northern Virginia and Kansas City through its pre-purchase development program and another parcel in Nashville, TN, in April 2026.
Mid-America Apartment Keeps Liquidity and Leverage Steady
MAA exited the quarter with $839.2 million of combined cash and available capacity under its unsecured revolving credit facility.
Story Continues
In February 2026, MAA disposed of a 316-unit apartment community in Houston, TX, generating net proceeds of about $41 million.
Balance sheet metrics remained steady. Total debt stood at $5.7 billion as of March 31, 2026, with net debt to adjusted EBITDAre at 4.5X. The average effective interest rate was 3.9%, fixed-rate debt represented 87.1% of the total, and the average years to maturity was 6.1.
MAA Returns Capital and Maintains 2026 Outlook
Capital returns continued alongside portfolio investment. During the first quarter, MAA repurchased 0.6 million shares at a weighted average price of $130.46 for a total consideration of about $73 million.
For the second quarter of 2026, MAA guided core FFO per share in the band of $2.00-$2.12, implying a $2.06 midpoint and reflecting expected headwinds from same-store NOI and interest expense, partly offset by lower overhead and share repurchases. The Zacks Consensus Estimate of $2.10 lies within the range.
Management maintained its 2026 core FFO per share at $8.53 (range: $8.37-$8.69). The Zacks Consensus Estimate for the same is currently pegged at $8.53 and lies within the range.
MAA’s Zacks Rank
Currently, MAA carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Mid-America Apartment Communities, Inc. Price, Consensus and EPS SurpriseMid-America Apartment Communities, Inc. Price, Consensus and EPS Surprise
Mid-America Apartment Communities, Inc. price-consensus-eps-surprise-chart | Mid-America Apartment Communities, Inc. Quote
Performance of Other Residential REITs
Essex Property Trust Inc. ESS reported first-quarter 2026 core FFO per share of $4.06, beating the Zacks Consensus Estimate of $3.96 by 2.5%. The figure improved 2.3% from $3.97 in the year-ago quarter. Results reflected favorable growth in same-property NOI and higher occupancy.
AvalonBay Communities AVB reported first-quarter 2026 core FFO per share of $2.83, surpassing the Zacks Consensus Estimate of $2.80. AVB’s same-store economic occupancy held at 96.1%, underscoring steady demand heading into the peak leasing season. The quarter benefited from incremental development NOI and commercial NOI.
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.
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- Essex Property Trust Inc (ESS) Q1 2026 Earnings Call Highlights: Strong Performance Amidst ...
Apr 30, 2026
This article first appeared on GuruFocus.
Core FFO per Share: Exceeded the midpoint of guidance range by $0.11. Same Property Revenues: Grew 2.9% year-over-year, 50 basis points ahead of plan. Same Property Operating Expense Growth: Flat year-over-year. Same-Store Blended Rent Growth: 1.4% for the quarter. Northern California Blended Rent Growth: 3.2% for the quarter. Seattle Blended Rent Growth: Negative 80 basis points. Southern California Blended Rent Growth: Approximately 1%. Stock Repurchase: Approximately $62 million at an average price of $243.76. Net Debt-to-EBITDA: 5.5 times. Available Liquidity: Over $1 billion.
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Release Date: April 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Essex Property Trust Inc (NYSE:ESS) exceeded the high end of its guidance range for core FFO per share in the first quarter. The company achieved a 20 basis point year-over-year occupancy gain through an occupancy-focused strategy. Northern California outperformed expectations with a 3.2% blended rent growth, driven by strong performance in San Francisco and San Mateo. Essex Property Trust Inc (NYSE:ESS) successfully repurchased approximately $62 million of stock, capitalizing on a significant discount to private market valuation. The company reported a solid balance sheet with net debt-to-EBITDA of 5.5 times and over $1 billion in available liquidity.
Negative Points
Heightened geopolitical tensions and inflationary pressures have contributed to increased near-term uncertainty. Seattle experienced a slow start to the year with a negative 80 basis point blended rent growth due to a soft demand environment. Southern California's performance was modest, with Los Angeles showing only incremental improvements. The company faces a $0.07 headwind to its second-half forecast due to early structured finance redemption proceeds. Essex Property Trust Inc (NYSE:ESS) is cautious about adjusting its full-year forecast due to current macroeconomic uncertainties.
Q & A Highlights
Q: Can you explain the expected trend for blended rate growth this year to meet the 2.5% guidance? A: We are on track with our guidance. The first quarter came in at 1.4%, and April is already above 3%. We anticipate no challenges in achieving the 2.5% target for the year, with the first and second halves expected to be similar.
Q: Regarding the $90 million early redemptions, is this a pull forward from later years, and could it worsen the FFO headwind? A: The $90 million is from maturities originally set for 2027 and 2028, now pulled into 2026. This means no redemptions in '27 and '28, so the headwind is effectively behind us.
Story Continues
Q: What drove the change in methodology for net effective rate growth, and how does it compare to prior disclosures? A: The change aligns our reporting with peers for easier comparison. The cadence shows higher rates in Q2 and Q3 and lower in Q4 and Q1. This change was signaled last year and does not affect our business approach.
Q: Have recent tech layoffs affected the California market, or are forward indicators still strong? A: Despite layoff announcements, job openings at top tech companies remain steady, and unemployment claims are low, indicating displaced workers find new jobs quickly. Northern California, with a high concentration of tech companies, is our best-performing region.
Q: Can you provide more detail on the expense surprises in Q1 and what might reverse in the second half? A: The flat expense growth was due to delayed controllable expense projects, which will occur in Q2 and Q3. For the full year, controllable expense growth is expected to be around 2%.
Q: How is the demand for West Coast assets, and what is the investment appetite for California real estate? A: There is significant capital interest in West Coast assets, driven by strong fundamentals and supply constraints. Cap rate compression in Northern California reflects this demand, and we expect it to continue.
Q: How do you view the impact of AI on your markets, particularly in Northern California? A: We see a direct benefit from AI, especially near San Francisco, with many startups emerging. Large AI companies are expanding into the Peninsula, benefiting our markets long-term.
Q: What are your thoughts on the political environment and its impact on demand in West Coast markets? A: It's too early to predict the impact of political tax measures, but we haven't seen any direct effects on our business. Opposition to new taxes and advocacy for responsible expense management are also present.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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- EQR's Q1 FFO Beats Estimates on Coastal Demand Strength
Apr 29, 2026
Equity Residential EQR reported first-quarter 2026 normalized FFO of 99 cents per share, up 4.2% year over year and ahead of the Zacks Consensus Estimate of 95 cents by 4.2%. Rental income grew 2.5% year over year to $779.8 million but came in 0.3% below the consensus mark of $782.6 million.
Operating fundamentals were supported by steady occupancy and improving coastal-market momentum. Same-store performance remained strong, with revenue growth outpacing prior-quarter momentum and occupancy staying firm. Management emphasized strength in San Francisco and New York, citing solid demand from higher-earning renters and moderating new supply across its markets.
Same-store revenues climbed 2.2%, and same-store NOI increased 1.4% year over year. Same-store physical occupancy held firm at 96.5%, while resident turnover fell to 7.8%, the lowest level in the company’s history.
Equity Residential Sees Improvement in Leasing Trends
Leasing indicators pointed to sequential improvement heading into the peak leasing season. Blended rate growth in the quarter was 1.5%, reflecting a 130-basis-point sequential improvement from the fourth quarter of 2025, while April’s preliminary blended rate moved higher to 3% as renewal pricing stayed firm and new-lease pressure moderated.
Concessions also continued to ease. On a same-store cash basis, leasing concessions in the quarter were down 21% from the prior-year period, signaling a healthier competitive backdrop in several key markets as new supply trends soften. At the portfolio level, resident renewals remained steady at 61.6% for the quarter, while new-lease change was negative, underscoring the continued importance of renewal pricing in overall revenue realization.
EQR Faces Expense Pressure
Expense lines were mixed. Property and maintenance costs rose to $149.7 million from $144.0 million, while real estate taxes and insurance increased to $117.0 million from $111.8 million. Interest expense incurred, net, climbed to $77.4 million from $72.1 million.
EQR's Balance Sheet Stays Conservative, Leverage Steady
Balance sheet positioning stayed conservative, with total debt largely unsecured and leverage metrics remaining steady, supporting flexibility as the company moves through the 2026 leasing cycle.
Total debt was $8.34 billion, weighted to unsecured borrowings (about 81% of total), with a 3.78% weighted average rate and a 6.3-year weighted average maturity. Cash and cash equivalents were $34.7 million at quarter-end, and the company also held $104.4 million of restricted deposits.
Leverage remained steady, with net debt to normalized EBITDAre at 4.35X as of March 31, 2026. EQR’s unsecured debt covenant metrics were also comfortably inside limits, including debt-to-adjusted total assets of 27.9% (vs. a 60% cap) and secured debt-to-adjusted total assets of 6.1% (vs. a 40% cap). Unencumbered NOI represented 90.1% of total NOI as of March 31, 2026, underscoring the company’s flexibility within its largely unsecured capital structure.
Story Continues
EQR Steps Up Shareholder Returns
Capital allocation remained a notable highlight. During the quarter, the company repurchased and retired about 3.5 million common shares for roughly $219.4 million, funded with excess disposition proceeds from 2025 sale activity. The company also increased its annual common dividend to $2.81 per share during the quarter.
EQR Sets Q2 FFO Outlook, Reaffirms Full-Year View
Management issued second-quarter 2026 guidance that implies seasonal improvement. The company expects normalized FFO per share of 98 cents to $1.02, with the quarter-to-quarter normalized FFO improvement by a 3-cent per share contribution from residential same-store NOI, partially offset by net interest and corporate overhead. The Zacks Consensus Estimate is currently pegged at $1.02.
For full-year 2026, EQR reaffirmed normalized FFO per share guidance of $4.02-$4.14. The Zacks Consensus Estimate is currently pegged at $4.07. Within its same-store framework, the company expects revenue growth of 1.2%-3.2%, expense growth of 3%-4% and NOI growth of 0.5%-2.5%, alongside a 96.4% physical-occupancy assumption and normalized interest expense of $318-$324 million.
EQR’s Zacks Rank
Equity Residential currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Equity Residential Price, Consensus and EPS SurpriseEquity Residential Price, Consensus and EPS Surprise
Equity Residential price-consensus-eps-surprise-chart | Equity Residential Quote
Performance of Other Residential REITs
AvalonBay Communities, Inc. AVB reported first-quarter 2026 core FFO per share of $2.83, beating the Zacks Consensus Estimate of $2.80 by 1.1%. Total revenues came in at $770.3 million, up 3.3% year over year and essentially in line with the consensus mark of $770.6 million.
AvalonBay’s same-store economic occupancy held at 96.1%, underscoring steady demand heading into the peak leasing season. The quarter benefited from incremental development NOI and commercial NOI. However, higher interest expenses undermined the performance of AvalonBay to an extent.
Essex Property Trust, Inc. ESS reported first-quarter 2026 core FFO per diluted share of $4.06, beating the Zacks Consensus Estimate of $3.96 by 2.5%. The figure improved 2.3% from $3.97 in the year-ago quarter. Essex Property Trust’s total revenues were $484.8 million, up 4.3% year over year and ahead of the consensus mark of $481.4 million by 0.7%. Same-property NOI increased 4.1% from the year-ago quarter, reflecting solid property-level momentum.
Essex Property Trust’s management noted that core FFO per share exceeded the midpoint of the company’s prior guidance for the quarter by 11 cents. Of that outperformance, 8 cents was attributed to favorable same-property NOI, with additional help from co-investments.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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- ESS Q1 FFO Beats Estimates on Strong Same-Property NOI
Apr 29, 2026
Essex Property Trust, Inc. ESS reported first-quarter 2026 core funds from operations (FFO) per diluted share of $4.06, beating the Zacks Consensus Estimate of $3.96 by 2.5%. The figure improved 2.3% from $3.97 in the year-ago quarter.
Total revenues were $484.8 million, up 4.3% year over year and ahead of the consensus mark of $481.4 million by 0.7%. Same-property net operating income (NOI) increased 4.1% from the year-ago quarter, reflecting solid property-level momentum.
Management noted that core FFO per share exceeded the midpoint of the company’s prior guidance for the quarter by 11 cents. Of that outperformance, 8 cents was attributed to favorable same-property NOI, with additional help from co-investments.
ESS Delivers Broad-Based Same-Property Momentum
Same-property strength was a clear driver of the quarterly performance. The company reported a 2.9% year-over-year increase in same-property revenues, supported by improving fundamentals across its West Coast footprint.
Northern California led the regional growth profile, with same-property revenues up 3.9% year over year, while Southern California and the Seattle Metro posted increases of 2.2% and 2.3%, respectively. On a sequential basis, the same-property portfolio generated 0.7% revenue growth, reflecting continued stabilization in demand and pricing.
ESS Sees Sequential Improvement in Rent Drivers
The quarter’s same-property revenue growth was driven primarily by scheduled rents, which increased 2.2% year over year. Other income added another 0.5% tailwind, while delinquency and vacancy were modestly favorable.
Sequentially, scheduled rents increased 0.3%, while vacancy and cash concessions were each a 0.2% positive factor. The company’s same-property financial occupancy ended the quarter at 96.5%, up 20 basis points from a year ago, with occupancies of 96.1% in Southern California, 96.9% in Northern California and 96.6% in Seattle.
ESS' Expense Profile Reflects Higher Interest and G&A
Expense items were mixed. Net interest expense totaled $64.0 million, up from $61.5 million in the year-ago quarter, while general and administrative expense increased to $20.0 million from $16.3 million. At the property level, operating expenses rose to $141.3 million from $138.6 million, led by higher utilities costs, partially offset by lower real estate taxes.
Essex Property Maintains Ample Liquidity and Credit Metrics
Essex Property ended the quarter with more than $1.7 billion of immediately available liquidity, supported by undrawn capacity on unsecured credit facilities as well as cash and marketable securities. Cash and cash equivalents totaled $47.4 million, and marketable securities were $96.5 million at quarter-end.
Balance sheet leverage metrics remained within stated covenant levels. Total debt, net, was $6.81 billion, and debt to total assets stood at 34%. Credit ratings were Baa1 from Moody’s and BBB+ from S&P, both with stable outlooks, underscoring ongoing access to the unsecured debt markets.
Story Continues
Essex Property Highlights Shareholder Returns
Essex Property continued to lean into capital returns alongside operating execution. During the quarter, the company announced an increase in its dividend by 0.8% to an annual distribution of $10.36 per common share, extending its streak of consecutive annual dividend increases to 32 years.
Share repurchases were also notable. Year to date through April 27, 2026, the company repurchased $61.9 million of common stock, including commissions, at an average price per share of $243.76. As of the same date, remaining authorization under the repurchase plan was $240.8 million.
ESS Reaffirms 2026 Outlook After Q1 Outperformance
ESS introduced second-quarter 2026 core FFO guidance of $3.92-$4.04 per diluted share, with a midpoint of $3.98. The Zacks Consensus Estimate is pegged at $4.06.
For full-year 2026, the company reaffirmed its core FFO guidance range of $15.69-$16.19 per share, alongside its same-property portfolio expectations for revenue growth of 1.70% to 3.10%, operating expense growth of 2.50% to 3.50% and NOI growth of 0.80% to 3.40%. The Zacks Consensus Estimate for full-year 2026 core FFO per share currently stands at $16.03.
ESS’ Zacks Rank
Essex Property currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Essex Property Trust, Inc. Price, Consensus and EPS SurpriseEssex Property Trust, Inc. Price, Consensus and EPS Surprise
Essex Property Trust, Inc. price-consensus-eps-surprise-chart | Essex Property Trust, Inc. Quote
Performance of Other Residential REITs
AvalonBay Communities, Inc. AVB reported first-quarter 2026 core funds from operations (FFO) per share of $2.83, beating the Zacks Consensus Estimate of $2.80 by 1.1%. Total revenues came in at $770.3 million, up 3.3% year over year and essentially in line with the consensus mark of $770.6 million.
AvalonBay’s same-store economic occupancy held at 96.1%, underscoring steady demand heading into the peak leasing season. The quarter benefited from incremental development NOI and commercial NOI. However, higher interest expenses undermined the performance of AvalonBay to an extent.
Equity Residential EQR reported first-quarter 2026 normalized FFO of 99 cents per share, up 4.2% year over year and ahead of the Zacks Consensus Estimate of 95 cents by 4.2%. Rental income grew 2.5% year over year to $779.8 million but came in 0.3% below the consensus mark of $782.6 million.
Equity Residential’s operating fundamentals were supported by steady occupancy and improving coastal-market momentum. Same-store performance remained strong, with revenue growth outpacing prior-quarter momentum and occupancy staying firm. Equity Residential’s management emphasized strength in San Francisco and New York, citing solid demand from higher-earning renters and moderating new supply across its markets.
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.
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- Compared to Estimates, Essex Property Trust (ESS) Q1 Earnings: A Look at Key Metrics
Apr 28, 2026
Essex Property Trust (ESS) reported $484.76 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 4.3%. EPS of $4.06 for the same period compares to $3.16 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $481.39 million, representing a surprise of +0.7%. The company delivered an EPS surprise of +2.6%, with the consensus EPS estimate being $3.96.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Essex Property Trust performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Financial Occupancies - Same-Property Portfolio: 96.5% versus 96.3% estimated by three analysts on average. Revenues- Rental and other property: $482.44 million versus $482.52 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +4.4% change. Revenues- Management and other fees from affiliates: $2.31 million versus $2.29 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -7.3% change. Revenues- Total rental and other property revenues- Same-Property Revenues: $442.57 million versus the two-analyst average estimate of $416.13 million. Revenues- Rental and other property- Other property: $6.63 million versus the two-analyst average estimate of $7.36 million. The reported number represents a year-over-year change of +6.5%. Revenues- Rental and other property- Rental income: $475.81 million versus the two-analyst average estimate of $479.54 million. The reported number represents a year-over-year change of +4.4%. Net Earnings Per Share (Diluted): $1.65 versus $1.35 estimated by four analysts on average.
View all Key Company Metrics for Essex Property Trust here>>>
Shares of Essex Property Trust have returned +5.9% over the past month versus the Zacks S&P 500 composite's +12.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Story Continues
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- Essex Property Trust (ESS) Tops Q1 FFO and Revenue Estimates
Apr 28, 2026
Essex Property Trust (ESS) came out with quarterly funds from operations (FFO) of $4.06 per share, beating the Zacks Consensus Estimate of $3.96 per share. This compares to FFO of $3.97 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of +2.60%. A quarter ago, it was expected that this real estate investment trust would post FFO of $4 per share when it actually produced FFO of $3.98, delivering a surprise of -0.5%.
Over the last four quarters, the company has surpassed consensus FFO estimates three times.
Essex Property Trust, which belongs to the Zacks REIT and Equity Trust - Residential industry, posted revenues of $484.76 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.70%. This compares to year-ago revenues of $464.58 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
Essex Property Trust shares have lost about 1.9% since the beginning of the year versus the S&P 500's gain of 4.8%.
What's Next for Essex Property Trust?
While Essex Property Trust has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Essex Property Trust was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $4.06 on $486.49 million in revenues for the coming quarter and $16.03 on $1.95 billion in revenues for the current fiscal year.
Story Continues
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Residential is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, American Homes 4 Rent (AMH), is yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.
This real estate company is expected to post quarterly earnings of $0.48 per share in its upcoming report, which represents a year-over-year change of +4.4%. The consensus EPS estimate for the quarter has been revised 0.3% higher over the last 30 days to the current level.
American Homes 4 Rent's revenues are expected to be $468.02 million, up 1.9% from the year-ago quarter.
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- Essex Announces First Quarter 2026 Results
Apr 28, 2026
SAN MATEO, Calif., April 28, 2026--(BUSINESS WIRE)--Essex Property Trust, Inc. (NYSE: ESS) (the "Company") announced today its first quarter 2026 earnings results and related business activities.
Net Income, Funds from Operations ("FFO"), and Core FFO per diluted share for the three-month period ended March 31, 2026 are detailed below.
Three Months Ended March 31, % 2026 2025 Change Per Diluted Share Net Income $1.65 $3.16 -47.8% Total FFO $4.17 $3.97 5.0% Core FFO $4.06 $3.97 2.3%
Recent Highlights:
Reported Net Income per diluted share for the first quarter of 2026 of $1.65, compared to $3.16 in the first quarter of 2025. The decrease is mainly attributable to gain on sale of real estate and land recognized in the first quarter of 2025.
Grew Core FFO per diluted share by 2.3% compared to the first quarter of 2025, exceeding the midpoint of the Company’s guidance range by $0.11. The outperformance was primarily driven by favorable same-property net operating income ("NOI").
Achieved same-property revenue and NOI growth of 2.9% and 4.1%, respectively, compared to the first quarter of 2025. On a sequential basis, same-property revenue and NOI improved 0.7% and 1.3%, respectively.
Repurchased $61.9 million of common stock year-to-date, including commissions, at an average price per share of $243.76.
Increased the dividend by 0.8% to an annual distribution of $10.36 per common share, the Company’s 32nd consecutive annual increase.
Reaffirmed the full-year guidance ranges for Core FFO per diluted share, same-property revenue, expenses, and NOI.
As of March 31, 2026, the Company’s immediately available liquidity was over $1.7 billion.
SAME-PROPERTY OPERATIONS
Same-property operating results exclude any properties that are not comparable for the periods presented. The table below illustrates the percentage change in same-property revenue on a year-over-year and sequential basis for the three-month period ended March 31, 2026:
Revenue Change Q1 2026
vs. Q1 2025 Q1 2026
vs. Q4 2025 % of Total Q1
2026 Revenue Southern California Los Angeles County 1.7% -0.2% 17.0% Orange County 2.9% 0.0% 10.1% San Diego County 2.6% 0.8% 9.9% Ventura County 1.9% 0.2% 4.7% Total Southern California 2.2% 0.1% 41.7% Northern California Santa Clara County 4.6% 1.2% 20.8% Alameda County 3.0% 0.6% 7.0% San Mateo County 4.9% 1.4% 4.5% Contra Costa County 1.5% 1.2% 5.1% San Francisco 4.3% 4.2% 3.0% Total Northern California 3.9% 1.4% 40.4% Seattle Metro 2.3% 0.5% 17.9% Same-Property Portfolio 2.9% 0.7% 100.0%
The table below illustrates the components that drove the change in same-property revenue on a year-over-year and sequential basis for the three-month period ended March 31, 2026:
Story Continues
Same-Property Revenue Components Q1 2026
vs. Q1 2025 Q1 2026
vs. Q4 2025 Scheduled Rents 2.2% 0.3% Delinquency 0.1% 0.0% Cash Concessions -0.1% 0.2% Vacancy 0.2% 0.2% Other Income 0.5% 0.0% Q1 2026 Same-Property Revenue Growth 2.9% 0.7%
Year-Over-Year Change Q1 2026 compared to Q1 2025 Revenue Operating
Expenses NOI Southern California 2.2% 1.9% 2.3% Northern California 3.9% 0.2% 5.6% Seattle Metro 2.3% -3.4% 4.9% Same-Property Portfolio 2.9% 0.2% 4.1%
Sequential Change Q1 2026 compared to Q4 2025 Revenue Operating
Expenses NOI Southern California 0.1% -1.8% 0.9% Northern California 1.4% 0.1% 1.9% Seattle Metro 0.5% -0.8% 1.0% Same-Property Portfolio 0.7% -0.9% 1.3% Financial Occupancies Quarter Ended 3/31/2026 12/31/2025 3/31/2025 Southern California 96.1% 96.4% 95.8% Northern California 96.9% 96.4% 96.7% Seattle Metro 96.6% 96.1% 96.2% Same-Property Portfolio 96.5% 96.4% 96.3%
BALANCE SHEET AND LIQUIDITY
Common Stock and Liquidity
In the first quarter of 2026, the Company repurchased 205,740 shares of its common stock through the Company’s stock repurchase plan, totaling $50.2 million, including commissions, at an average price per share of $244.06.
Subsequent to quarter end, the Company repurchased 48,261 shares of its common stock through the Company’s stock repurchase plan, totaling $11.7 million, including commissions, at an average price per share of $242.47. Year-to-date, the Company has repurchased $61.9 million of its common stock, including commissions, at an average price per share of $243.76. As of April 27, 2026, the Company has $240.8 million of purchase authority remaining under its stock repurchase plan.
As of March 31, 2026, the Company had over $1.7 billion in liquidity via undrawn capacity on its unsecured credit facilities, cash and cash equivalents, and marketable securities.
GUIDANCE
For the first quarter of 2026, the Company exceeded the midpoint of the guidance range provided in its fourth quarter 2025 earnings release for Core FFO by $0.11 per diluted share, of which $0.08 is attributable to same-property NOI.
The following table provides a reconciliation of first quarter 2026 Core FFO per diluted share to the midpoint of the guidance provided in the Company’s fourth quarter 2025 earnings release.
Per Diluted
Share Guidance midpoint of Core FFO per diluted share for Q1 2026 $ 3.95 NOI from Consolidated Communities 0.09 FFO from Co-Investments 0.02 Core FFO per diluted share for Q1 2026 reported $ 4.06
2026 FULL-YEAR AND SECOND QUARTER GUIDANCE Per Diluted Share (1) Previous
Range Current
Range Current
Midpoint Change at
Midpoint Net Income $5.55 - $6.05 $5.62 - $6.12 $5.87 +$0.07 Total FFO $15.54 - $16.04 $15.71 - $16.21 $15.96 +$0.17 Core FFO $15.69 - $16.19 $15.69 - $16.19 $15.94 - Q2 2026 Core FFO N/A $3.92 - $4.04 $3.98 N/A Same-Property Portfolio Growth (2) Revenues 1.70% to 3.10% 1.70% to 3.10% 2.40% - Operating Expenses 2.50% to 3.50% 2.50% to 3.50% 3.00% - Net Operating Income 0.80% to 3.40% 0.80% to 3.40% 2.10% -
(1) Full-Year 2026 guidance updated to include an additional $90 million in early structured finance redemptions set to occur in the second quarter of 2026, which was not previously expected in the original plan. For additional details, please refer to page S-15 of the supplemental financial information. (2) Reflects guidance on a cash basis based on 52,135 apartment homes. On a GAAP basis, the midpoints of the Company’s same-property revenue and NOI guidance are 2.50% and 2.20%, respectively.
CONFERENCE CALL WITH MANAGEMENT
The Company will host an earnings conference call with management to discuss its quarterly results on Wednesday, April 29, 2026 at 10:00 a.m. PT (1:00 p.m. ET), which will be broadcast live via the Internet at www.essex.com, and accessible via phone by dialing toll-free, (877) 407-0784, or toll/international, (201) 689-8560. No passcode is necessary.
A rebroadcast of the live call will be available online for 30 days and digitally for 7 days. To access the replay online, go to www.essex.com and select the first quarter 2026 earnings link. To access the replay, dial (844) 512-2921 using the replay pin number 13759660. If you are unable to access the information via the Company’s website, please contact the Investor Relations Department at investors@essex.com or calling (650) 655-7800.
UPCOMING EVENTS
The Company is scheduled to participate in the National Association of Real Estate Investment Trusts ("Nareit") REITweek in New York being held June 1-4, 2026. The Company’s President and Chief Executive Officer, Angela L. Kleiman, will present at the conference on June 3, 2026 at 3:30 p.m. ET. The presentation will be webcast and can be accessed on the Investors section of the Company’s website at www.essex.com. A copy of any materials provided by the Company at the conference will also be made available on the Investors section of the Company’s website.
CORPORATE PROFILE
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 ownership interests in 259 apartment communities comprising over 63,000 apartment homes with an additional property in active development. Additional information about the Company can be found on the Company’s website at www.essex.com.
This press release and accompanying supplemental financial information has been furnished to the Securities and Exchange Commission electronically on Form 8-K and can be accessed from the Company’s website at www.essex.com. If you are unable to obtain the information via the Web, please contact the Investor Relations Department at (650) 655-7800.
FFO RECONCILIATION
FFO, as defined by the National Association of Real Estate Investment Trusts ("Nareit"), is generally considered by industry analysts as an appropriate measure of performance of an equity REIT. Generally, FFO adjusts the net income of equity REITs for non-cash charges such as depreciation and amortization of rental properties, impairment charges, gains on sales of real estate and extraordinary items. Management considers FFO and FFO which excludes non-core items, which is referred to as "Core FFO," to be useful supplemental operating performance measures of an equity REIT because, together with net income and cash flows, FFO and Core FFO provide investors with additional bases to evaluate the operating performance and ability of a REIT to incur and service debt and to fund acquisitions and other capital expenditures and to pay dividends. By excluding gains or losses related to sales of depreciated operating properties and land and excluding real estate depreciation (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help investors compare the operating performance of a real estate company between periods or as compared to different companies. By further adjusting for items that are not considered part of the Company’s core business operations, Core FFO allows investors to compare the core operating performance of the Company to its performance in prior reporting periods and to the operating performance of other real estate companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual operating results. FFO and Core FFO do not represent net income or cash flows from operations as defined by U.S. generally accepted accounting principles ("GAAP") and are not intended to indicate whether cash flows will be sufficient to fund cash needs. These measures should not be considered as alternatives to net income as an indicator of the REIT's operating performance or to cash flows as a measure of liquidity. FFO and Core FFO do not measure whether cash flow is sufficient to fund all cash needs including principal amortization, capital improvements and distributions to stockholders. FFO and Core FFO also do not represent cash flows generated from operating, investing or financing activities as defined under GAAP. Management has consistently applied the Nareit definition of FFO to all periods presented. However, there is judgment involved and other REITs’ calculation of FFO may vary from the Nareit definition for this measure, and thus their disclosures of FFO may not be comparable to the Company’s calculation.
The following table sets forth the Company’s calculation of FFO and Core FFO per diluted share for the three-month periods ended March 31, 2026 and 2025 (dollars in thousands, except for share and per share amounts):
Three Months Ended
March 31, 2026 2025 Net income available to common stockholders $ 106,186 $ 203,110 Adjustments: Depreciation and amortization 154,895 151,287 Gains not included in FFO - (111,360) Depreciation and amortization from unconsolidated co-investments 13,316 14,378 Noncontrolling interest related to Operating Partnership units 3,669 7,279 Depreciation attributable to third party ownership and other (38) (46) Funds from Operations attributable to common stockholders and unitholders $ 278,028 $ 264,648 FFO per share – diluted $ 4.17 $ 3.97 Tax expense (benefit) on unconsolidated technology co-investments $ 3,614 $ (163) Realized and unrealized losses on marketable securities, net 1,726 91 Provision for credit losses 34 (3) Equity income from unconsolidated technology co-investments (17,036) (1,716) Loss on early retirement of debt - 762 General and administrative and other, net (1) 4,546 1,276 Insurance reimbursements, legal settlements, and other, net (51) (361) Core Funds from Operations attributable to common stockholders and unitholders $ 270,861 $ 264,534 Core FFO per share – diluted $ 4.06 $ 3.97 Weighted average number of shares outstanding diluted (2) 66,688,617 66,656,852
(1) Includes political advocacy costs of $1.6 million and $0.1 million for the three months ended March 31, 2026 and 2025, respectively. (2) Assumes conversion of all outstanding limited partnership units in the Operating Partnership into shares of the Company’s common stock and excludes DownREIT limited partnership units.
NET OPERATING INCOME ("NOI") AND SAME-PROPERTY NOI RECONCILIATIONS
NOI and Same-Property NOI are considered by management to be important supplemental performance measures to earnings from operations included in the Company’s consolidated statements of income. The presentation of same-property NOI assists with the presentation of the Company’s operations prior to the allocation of depreciation and any corporate-level or financing-related costs. NOI reflects the operating performance of a community and allows for an easy comparison of the operating performance of individual communities or groups of communities. In addition, because prospective buyers of real estate have different financing and overhead structures, with varying marginal impacts to overhead by acquiring real estate, NOI is considered by many in the real estate industry to be a useful measure for determining the value of a real estate asset or group of assets. The Company defines same-property NOI as same-property revenue less same-property operating expenses, including property taxes. Please see the reconciliation of earnings from operations to NOI and same-property NOI, which in the table below is the NOI for stabilized properties consolidated by the Company for the periods presented (dollars in thousands):
Three Months Ended
March 31, 2026 2025 Earnings from operations $ 155,193 $ 257,081 Adjustments: Corporate-level property management expenses 13,398 12,332 Depreciation and amortization 154,895 151,287 Management and other fees from affiliates (2,313) (2,494) General and administrative 20,014 16,292 Gain on sale of real estate and land - (111,030) NOI 341,187 323,468 Less: Non-same property NOI (28,118) (22,700) Same-Property NOI $ 313,069 $ 300,768
SAFE HARBOR STATEMENT UNDER THE PRIVATE LITIGATION REFORM ACT OF 1995:
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements which are not historical facts, including statements regarding the Company's expectations, estimates, assumptions, hopes, intentions, beliefs and strategies regarding the future. Words such as "expects," "assumes," "anticipates," "may," "will," "intends," "plans," "projects," "believes," "seeks," "future," "estimates," and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, among other things, statements regarding the Company’s second quarter and full-year 2026 guidance (including net income, Total FFO and Core FFO, same-property growth and related assumptions) and anticipated yield on certain investments. While the Company's management believes the assumptions underlying its forward-looking statements are reasonable, such forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s control, which could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The Company cannot assure the future results or outcome of the matters described in these statements; rather, these statements merely reflect the Company’s current expectations of the approximate outcomes of the matters discussed.
Factors that might cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements include, but are not limited to, the following: assumptions related to our second quarter and full-year 2026 guidance; occupancy rates and rental demand may be adversely affected by competition and local economic and market conditions; there may be increased interest rates, inflation, escalated operating costs and possible recessionary impacts; tariffs, geopolitical tensions and regional conflicts, and the related impacts on macroeconomic conditions, including, among other things, interest rates and inflation; the terms of any refinancing may not be as favorable as the terms of existing indebtedness; the Company’s inability to maintain its investment grade credit rating with the rating agencies; the Company may be unsuccessful in the management of its relationships with its co-investment partners; the Company may fail to achieve its business objectives; time of actual completion and/or stabilization of development and redevelopment projects; estimates of future income from an acquired property may prove to be inaccurate; future cash flows may be inadequate to meet operating requirements and/or may be insufficient to provide for dividend payments in accordance with REIT requirements; changes in laws or regulations and the anticipated or actual impact of future changes in laws or regulations; unexpected difficulties in leasing of future development projects; volatility in financial and securities markets; the Company’s failure to successfully operate acquired properties; unforeseen consequences from cyber-intrusion; government approvals, actions and initiatives, including the need for compliance with environmental requirements; and those further risks, special considerations, and other factors referred to in the Company’s annual report on Form 10-K for the year ended December 31, 2025, quarterly reports on Form 10-Q, and those risk factors and special considerations set forth in the Company's other filings with the SEC which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. All forward-looking statements are made as of the date hereof, the Company assumes no obligation to update or supplement this information for any reason, and therefore, they may not represent the Company’s estimates and assumptions after the date of this press release.
DEFINITIONS AND RECONCILIATIONS
Non-GAAP financial measures and certain other capitalized terms, as used in this earnings release and supplemental financial information, are defined and further explained on pages S-17.1 through S-17.4, "Reconciliations of Non-GAAP Financial Measures and Other Terms," of the accompanying supplemental financial information. The supplemental financial information is available on the Company's website at www.essex.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260428717220/en/
Contacts
Contact Information
Loren Rainey
Sr. Director, Investor Relations
(650) 655-7800
lrainey@essex.com
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