Essex Property Q4 Core FFO Lags Estimates, Revenues Beat & Rise Y/Y

Essex Property Trust Inc. ESS reported fourth-quarter 2025 core funds from operations (FFO) per share of $3.98, missing the Zacks Consensus Estimate of $4. This compares favorably to the FFO of $3.92 per share a year ago.Results reflect favorable growth in same-property net operating income (NOI) and higher occupancy. Higher interest expenses partly acted as a dampener.Total revenues of $479.6 million were up 5.5% year over year. The reported figure beat the Zacks Consensus Estimate of $476.6 million.For full-year 2025, core FFO per share came in at $15.94, improving 2.2% year over year. The reported figure missed the Zacks Consensus Estimate of $15.98. Total revenues grew 6.4% year over year to $1.89 billion.ESS’ Q4 in DetailIn the fourth quarter, Essex Property’s same-property revenues and same-property operating expenses increased 3.8% from the prior-year period.The same-property NOI rose 3.8% year over year. Financial occupancies of 96.3% in the fourth quarter were up 20 basis points (bps) sequentially and 40 bps year over year.Interest expenses increased 7.1% year over year to $64.6 million.ESS’ Portfolio ActivityDuring the fourth quarter, ESS acquired 1250 Lakeside, a 250-unit apartment community built in 2021 and situated in Sunnyvale, CA, for $143.5 million.Balance Sheet Position of ESSESS had $1.7 billion in liquidity through the available capacity on its unsecured credit facilities, cash and cash equivalents and marketable securities as of Dec. 31, 2025. Essex Property exited the fourth quarter of 2025 with cash and cash equivalents, including restricted cash, of $85.6 million, up from the $75.2 million recorded at the end of the prior quarter.During the fourth quarter, ESS did not repurchase any shares through its stock repurchase plan.2026 Guidance by ESSFor the first quarter of 2026, Essex Property projects core FFO per share in the range of $3.89-$4.01, with the midpoint being $3.95. The Zacks Consensus Estimate is pegged at $4.01.For full-year 2026, the company projects core FFO per share in the range of $15.69-$16.19, with the midpoint being $15.94. The Zacks Consensus Estimate of $16.28 lies above this range.The full-year guidance is based on projections for the same-property revenue growth of 1.70-3.10%, an operating expense increase of 2.50-3.50% and an NOI expansion of 0.8-3.4%.ESS currently carries a Zacks Rank #4 (Sell).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. QuotePerformance of Other Residential REITsMid-America Apartment Communities MAA reported fourth-quarter 2025 FFO per share of $2.23, which surpassed the Zacks Consensus Estimate of $2.22. This compares with the FFO of $2.23 a year ago.Results reflected higher occupancy and same-store effective blended lease rate growth year over year. The same-store portfolio’s NOI and average effective rent per unit fell, undermining the performance.AvalonBay Communities AVB reported fourth-quarter 2025 core FFO per share of $2.85, surpassing the Zacks Consensus Estimate of $2.84. The figure increased 1.8% from the prior-year quarter’s tally of $2.80.Results reflected higher same-store NOI and occupancy growth year over year. Higher interest expenses undermined the performance to an extent.  AVB hiked its dividend per share.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.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant 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 AvalonBay Communities, Inc. (AVB): Free Stock Analysis Report Mid-America Apartment Communities, Inc. (MAA): Free Stock Analysis Report Essex Property Trust, Inc. (ESS): 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