Essex Property Trust, Inc. (ESS), headquartered in San Mateo, California, acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Valued at $17.73 billion by market cap, it has ownership interests in 254 apartment communities comprising approximately 62,000 apartment homes. The leading REIT is expected to announce its fiscal second-quarter earnings for 2024 after the market closes on Tuesday, Jul. 30.
Ahead of the event, analysts expect ESS to report an FFO of $3.85 per share on a diluted basis, up 2.1% from $3.77 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s FFO estimates in its last four quarterly reports.
For fiscal 2024, analysts expect ESS to report an FFO of $15.41, up 2.5% from $15.03 in fiscal 2023.
ESS stock has underperformed the S&P 500’s ($SPX) 18.3% gains on a YTD basis, with shares up 12% during this period. However, it outshined the S&P 500 Real Estate Sector SPDR’s (XLRE) marginal gains over the same time frame.
On Apr. 30, ESS reported its Q1 results. Its funds from operations were $254.70 million, or $3.83 per share, beating the consensus estimates of $3.74. The company’s net income was $272.70 million, or $4.25 per share. ESS’ revenue stood at $426.90 million, surpassing the Wall Street estimates of $422.40 million. The company raised its full-year 2024 guidance, expecting Core FFO to be between $15.03 and $15.43, with its midpoint of $15.23, which is $0.20 higher than the previous estimate.
It expects net income per diluted share to be between $8.04 and $8.44, with its revised midpoint of $8.24, $2.92 higher than the previous estimate. Similarly, its same-property NOI’s revised midpoint is $1.40, 0.8% higher than the previous forecast. ESS shares closed down marginally on the day the results were released but have been on an uptrend since then.
Analysts’ consensus opinion on ESS stock is neutral, with a “Hold” rating overall. Out of 25 analysts covering the stock, five advise a “Strong Buy” rating, two have a “Moderate Buy” rating, 15 recommend a “Hold” rating, and three give a “Strong Sell.” The average analyst price target for ESS is $264, indicating a 4.4% potential downside from the current levels.
On the date of publication, Dipanjan Banchur 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.
