Essex Property Q2 Core FFO Beats Estimates, Revenues Increase Y/Y

Essex Property Trust Inc. ESS reported second-quarter 2025 core funds from operations (FFO) per share of $4.03, beating the Zacks Consensus Estimate of $3.99. The figure also improved 2.3% from the year-ago quarter.Results reflected favorable growth in same-property revenues and net operating income (“NOI”). However, the same-property operating expenses partly acted as a dampener.Total revenues of $469.8 million marginally outpaced the Zacks Consensus Estimate of $469.2 million. Revenues were up 6.2% year over year.ESS’ Q2 in DetailIn the second quarter, Essex Property’s same-property revenues increased 3.2% from the prior-year period, up from our estimate of 2.3%. The same-property operating expenses rose 2.9% year over year compared with our estimate of 3.8%.The same-property NOI increased 3.3% year over year, up from our estimate of 1.7%.Financial occupancies of 96.2% in the second quarter remained unchanged year over year and decreased 10 basis points sequentially. The metric was down from our estimate of 96.6%.ESS Portfolio ActivityIn the second quarter, ESS acquired two apartment home communities, comprising 420 apartment homes, located in Northern California for $240.5 million.In the second quarter, the company sold a 350-unit apartment home community located in Southern California for $239.6 million.Subsequent to the quarter-end, it sold a 243-unit apartment home community located in Oakland, CA, for $97.5 million.Balance Sheet Position of ESSESS had $1.5 billion in liquidity through the undrawn capacity on its unsecured credit facilities, cash and cash equivalents and marketable securities as of June 30, 2025. Essex Property exited the second quarter of 2025 with cash and cash equivalents, including restricted cash, of $67.9 million, down from the $107.9 million recorded at the end of the prior quarter.During the second quarter, ESS did not repurchase any shares through its stock repurchase plan.2025 Guidance for ESSFor the third quarter of 2025, Essex Property projects core FFO per share in the range of $3.89-$3.99. The Zacks Consensus Estimate is pegged at $3.98 per share.For full-year 2025, the company projects core FFO per share in the range of $15.80-$16.02 compared to the prior guided range of $15.56-$16.06. The Zacks Consensus Estimate of $15.94 per share is within the new guided range.The full-year guidance is based on projections for the same-property revenue growth of 2.90-3.40%, an operating expense increase of 3.00-3.50% and a NOI expansion of 2.70-3.50%.Essex’s Zacks RankEssex Property currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Essex Property Trust, Inc. Price, Consensus and EPS Surprise Essex Property Trust, Inc. price-consensus-eps-surprise-chart | Essex Property Trust, Inc. Quote Upcoming Earnings ReleasesWe now look forward to the second-quarter 2025 earnings releases of residential REITs like Camden Property Trust CPT and American Homes 4 Rent AMH, which are slated to release on July 31.The Zacks Consensus Estimate for Camden’s second-quarter 2025 FFO per share is pegged at $1.69, which indicates a 1.2% decrease year over year. CPT currently has a Zacks Rank #2.The Zacks Consensus Estimate for American Homes’ second-quarter 2025 FFO per share is pegged at 46 cents, which implies a 2.2% year-over-year increase. AMH currently carries a Zacks Rank #2.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.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>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 Essex Property Trust, Inc. (ESS): Free Stock Analysis Report Camden Property Trust (CPT): Free Stock Analysis Report American Homes 4 Rent (AMH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks