We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
In the third quarter, Essex Property’s same-property revenues increased 3.5% from the prior-year period. However, same-property operating expenses rose 5.5% year over year.
Same-property NOI jumped 2.6% year over year. Financial occupancies of 96.2% in the third quarter contracted 20 basis points (bps) year over year and remained unchanged sequentially. Our estimate for the metric stood at 96.4%.
The year-over-year blended rate growth for the third quarter of 2024 came in at 2.5% compared to 3.4% achieved in the second quarter of 2024.
During the quarter, Essex acquired and consolidated two joint venture apartment home communities in San Jose, CA, at a combined valuation of $290.5 million on a gross basis.
Essex Property’s Balance Sheet
Essex Property exited the third quarter of 2024 with cash and cash equivalents, including restricted cash, of $80.2 million, up from $64.2 million recorded at the end of the second quarter of 2024. ESS had $1.2 billion in liquidity through the undrawn capacity on its unsecured credit facilities, cash and cash equivalents and marketable securities as of Oct. 28, 2024.
The company ended the quarter with a total net debt of $6.37 billion and net debt-to-Adjusted EBITDAre of 5.5X. ESS ended the quarter with a weighted average interest rate of 3.6% and a weighted average years to maturity of 7 years.
Essex Property’s 2024 Guidance
For the fourth quarter of 2024, Essex Property projects core FFO per share in the range of $3.82-$3.94, with the midpoint being $3.88. The Zacks Consensus Estimate is pegged at $3.89.
For 2024, the company revised the core FFO per share guidance to the range of $15.50-$15.62, with the midpoint being $15.56, from the earlier range of $15.38-$15.62. The Zacks Consensus Estimate of $15.55 stands within this range.
ESS now projects same-property revenue growth on a cash basis in the range of 3.1%-3.4%, revised from the 2.7%-3.3% range projected earlier. It expects operating expense growth to remain unchanged from the prior guidance range of 4.5%-5%. NOI is projected to grow in the range of 2.3%-2.9%, up from the 1.8%-2.8% band projected earlier.
We now look forward to the earnings releases of other REITs, such as AvalonBay Communities (AVB - Free Report) and Vornado Realty Trust (VNO - Free Report) , both of which are slated to report on Nov. 4.
The Zacks Consensus Estimate for AvalonBay’s third-quarter 2024 FFO per share stands at $2.71, indicating a 1.9% increase year over year. AVB currently has a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Vornado Realty Trust’s third-quarter 2024 FFO per share is pegged at 51 cents, implying a 22.7% year-over-year decline. VNO currently carries a Zacks Rank #3.
Note: Anything related to earningspresented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Essex Property Q3 FFO and Revenues Beat, '24 View Raised
Essex Property Trust Inc. (ESS - Free Report) reported third-quarter 2024 core funds from operations (FFO) per share of $3.91, which beat the Zacks Consensus Estimate of $3.88. The figure also improved 3.4% from the year-ago quarter.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Results reflect favorable growth in same-property revenues and net operating income (NOI). ESS also raised its full-year 2024 guidance.
Total revenues of $450.7 million outpaced the Zacks Consensus Estimate of $445.9 million. Revenues were up 7.5% year over year.
Essex Property Trust, Inc. Price, Consensus and EPS Surprise
Essex Property Trust, Inc. price-consensus-eps-surprise-chart | Essex Property Trust, Inc. Quote
Essex Property’s Q3 in Detail
In the third quarter, Essex Property’s same-property revenues increased 3.5% from the prior-year period. However, same-property operating expenses rose 5.5% year over year.
Same-property NOI jumped 2.6% year over year. Financial occupancies of 96.2% in the third quarter contracted 20 basis points (bps) year over year and remained unchanged sequentially. Our estimate for the metric stood at 96.4%.
The year-over-year blended rate growth for the third quarter of 2024 came in at 2.5% compared to 3.4% achieved in the second quarter of 2024.
During the quarter, Essex acquired and consolidated two joint venture apartment home communities in San Jose, CA, at a combined valuation of $290.5 million on a gross basis.
Essex Property’s Balance Sheet
Essex Property exited the third quarter of 2024 with cash and cash equivalents, including restricted cash, of $80.2 million, up from $64.2 million recorded at the end of the second quarter of 2024. ESS had $1.2 billion in liquidity through the undrawn capacity on its unsecured credit facilities, cash and cash equivalents and marketable securities as of Oct. 28, 2024.
The company ended the quarter with a total net debt of $6.37 billion and net debt-to-Adjusted EBITDAre of 5.5X. ESS ended the quarter with a weighted average interest rate of 3.6% and a weighted average years to maturity of 7 years.
Essex Property’s 2024 Guidance
For the fourth quarter of 2024, Essex Property projects core FFO per share in the range of $3.82-$3.94, with the midpoint being $3.88. The Zacks Consensus Estimate is pegged at $3.89.
For 2024, the company revised the core FFO per share guidance to the range of $15.50-$15.62, with the midpoint being $15.56, from the earlier range of $15.38-$15.62. The Zacks Consensus Estimate of $15.55 stands within this range.
ESS now projects same-property revenue growth on a cash basis in the range of 3.1%-3.4%, revised from the 2.7%-3.3% range projected earlier. It expects operating expense growth to remain unchanged from the prior guidance range of 4.5%-5%. NOI is projected to grow in the range of 2.3%-2.9%, up from the 1.8%-2.8% band projected earlier.
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.
Upcoming Earnings Releases
We now look forward to the earnings releases of other REITs, such as AvalonBay Communities (AVB - Free Report) and Vornado Realty Trust (VNO - Free Report) , both of which are slated to report on Nov. 4.
The Zacks Consensus Estimate for AvalonBay’s third-quarter 2024 FFO per share stands at $2.71, indicating a 1.9% increase year over year. AVB currently has a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Vornado Realty Trust’s third-quarter 2024 FFO per share is pegged at 51 cents, implying a 22.7% year-over-year decline. VNO currently carries a Zacks Rank #3.
Note: Anything related to earningspresented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.