With a market cap of around $18.6 billion, California-based real estate investment trust (REIT) Essex Property Trust, Inc. (ESS) is a leader in West Coast multifamily housing. With a focus on acquiring, developing, and managing high-quality residential properties, Essex holds ownership stakes in 255 apartment communities, totaling over 62,000 homes. Positioned in sought-after markets, Essex continues to shape urban living on the West Coast while delivering value to its investors through its integrated real estate operations.
The REIT is all set to unveil its fiscal 2024 Q3 earnings results on Tuesday, Oct. 29. Ahead of this event, analysts project the company to report a profit of $3.88 per share, reflecting a 2.7% jump from $3.78 per share registered in the year-ago quarter. Even more impressive is the company’s solid track record of consistently surpassing Wall Street's bottom-line estimates in the last four quarterly reports. In the most recent quarter, ESS posted an adjusted EPS of $3.94, surpassing the consensus estimate by a 2.6% margin.
Over the longer term, analysts tracking ESS project the company to report a profit of $15.55 per share in fiscal 2024, up nearly 3.5% year over year from $15.03 per share recorded in fiscal 2023. Looking forward to fiscal 2025, profit is expected to soar another 3.1% annually to $16.03 per share.
Over the past year, shares of Essex Property have gained 38.1%, outperforming the broader S&P 500 Index’s ($SPX) 34.9% gain and iShares Residential and Multisector Real Estate ETF’s (REZ) 33.2% return, over the same time frame.
The company reported its Q2 earnings results on Jul. 30, which sailed past both Wall Street’s top and bottom-line estimates. Essex’s Core FFO of $3.94 grew 4.5% annually thanks to stronger-than-expected consolidated net operating income growth. Additionally, during the quarter, Essex expanded its portfolio by acquiring two apartment communities in Northern California for $147.7 million. Yet, despite the overall strong Q2 performance, investors' reactions remained relatively flat post-announcement.
Analysts' consensus view on Essex Property stock is cautious, with a "Hold" rating overall. Out of 27 analysts covering the stock, five suggest a "Strong Buy," two advise "Moderate Buy," 18 recommend a "Hold,” and the remaining two advocate a “Strong Sell.” This configuration is slightly more bullish than three months ago, with three analysts suggesting a "Strong Sell."
The average analyst price target for ESS is $297.50, suggesting a potential upside of only 2.6% from current levels.
On the date of publication, Anushka Mukherjee 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. For more information please view the Barchart Disclosure Policy here.
