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.
Essex Property to Report Q1 Earnings: Here's What to Expect
Read MoreHide Full Article
Key Takeaways
ESS reports Q1 2026 results on April 28 after close; revenue consensus at $480.63M, up 3.46% y/y.
ESS same-property revenues seen at $416.13M vs. $409.15M; financial occupancy consensus 96.30%.
ESS projected core FFO/share $3.89-$4.01; estimate of $3.96 implies a 0.25% y/y dip.
Essex Property Trust, Inc. (ESS - Free Report) is scheduled to report its first-quarter 2026 results on April 28, after market close. The company’s quarterly results are likely to reflect year-over-year growth in revenues, while core funds from operations (FFO) per share might display a decline.
In the last reported quarter, this San Mateo, CA-based residential real estate investment trust (REIT) delivered a negative surprise of 0.50% in terms of core FFO per share. While quarterly results reflected favorable growth in same-property net operating income (NOI) and higher occupancy, higher interest expenses partly acted as a dampener.
Over the trailing four quarters, Essex Property’s earnings surpassed the Zacks Consensus Estimate on three occasions and missed on the other, the average surprise being 0.51%. The graph below depicts the surprise history of the company:
Let’s see how things have shaped up before this announcement.
US Apartment Market in Q1
The U.S. apartment market entered 2026 in better shape than many investors feared, though not yet in a clean pricing recovery. RealPage reported that first-quarter demand rebounded, with absorption of nearly 93,300 units, making it one of the strongest first quarters of the past decade. The snapback helped reverse the late-2025 move-out weakness, but annual demand still ran only a little above 303,000 units, below the roughly 340,000-unit decade average.
The good news is that the new supply is finally rolling over. Roughly 367,000 units were completed in the year-ending first quarter of 2026, including about 75,200 units in the quarter itself. This is still elevated in absolute terms, but it is a major comedown from the late-2024 peak of more than 589,000-unit annual deliveries and now sits near the 10-year average annual completion volume.
National occupancy stood at 94.9% in first-quarter 2026, up 10 basis points sequentially but 20 basis points below the prior year. Rents rose 0.4% in the quarter after two consecutive quarterly declines but remained down 0.5% year over year. Concessions continue to do much of the heavy lifting: 25.5% of apartments were offering concessions, with the average incentive at 7.2%.
The weakest rent trends remain in high-supply Sun Belt markets. Austin, Denver and Phoenix posted some of the deepest annual rent cuts, while San Antonio, Tampa, FL, Nashville, TN, and Las Vegas also lost momentum. In contrast, San Francisco, San Jose, CA, and New York showed rent growth, helped by easing supply pressure and better demand. Several Midwest markets, including Chicago, St. Louis, MO, and Cleveland, OH, also posted steady gains because new supply has been more limited.
Factors to Consider Ahead of ESS' Upcoming Results
Essex Property Trust entered first-quarter 2026 with a steady setup, backed by easing supply and better trends in its core West Coast markets. Management expects demand to stay stable, with new housing supply across its markets down about 20% this year.
According to management, early-year operating trends were consistent with expectations and tied its outlook to improving momentum in West Coast markets, particularly technology-driven demand. Renewals for February and March were tracking around the low to mid-4% range.
In operations, per management, Northern California continues to recover, helped by tech activity, stronger migration and limited supply. Seattle was softer in the fourth quarter, but management still sees support from lower supply and return-to-office moves. In Los Angeles, occupancy improved again, and the market is moving closer to stabilization.
Overall, Essex started the first quarter from a solid position. A muted labor market remains the main risk, but low new supply, healthy occupancy, and a high-cost gap between owning and renting should help support rent growth.
Projections for ESS' Q1 Results
The Zacks Consensus Estimate of $480.63 million for first-quarter revenues calls for a 3.46% increase year over year. The consensus estimate for same-property revenues is pegged at $416.13 million, up from $409.15 million in the year-ago period. The consensus mark for same-property financial occupancies is currently pegged at 96.30%, on par with the prior quarter.
For first-quarter 2026, Essex Property projected core FFO per share in the range of $3.89-$4.01, with the midpoint being $3.95.
Before the first-quarter earnings release, Essex Property’s activities were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly core FFO per share has remained unrevised in the past month at $3.96. It indicates a year-over-year marginal decline of 0.25%.
What Our Quantitative Model Predicts for ESS Stock
Our proven model does not conclusively predict a surprise in terms of core FFO per share for Essex Property this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Essex Property currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector — Ventas, Inc. (VTR - Free Report) and Cousins Properties Inc. (CUZ - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
Cousins Properties is likely to report quarterly numbers around April 29. It has an Earnings ESP of +0.94% and carries a Zacks Rank of 3 at present.
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' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Essex Property to Report Q1 Earnings: Here's What to Expect
Key Takeaways
Essex Property Trust, Inc. (ESS - Free Report) is scheduled to report its first-quarter 2026 results on April 28, after market close. The company’s quarterly results are likely to reflect year-over-year growth in revenues, while core funds from operations (FFO) per share might display a decline.
In the last reported quarter, this San Mateo, CA-based residential real estate investment trust (REIT) delivered a negative surprise of 0.50% in terms of core FFO per share. While quarterly results reflected favorable growth in same-property net operating income (NOI) and higher occupancy, higher interest expenses partly acted as a dampener.
Over the trailing four quarters, Essex Property’s earnings surpassed the Zacks Consensus Estimate on three occasions and missed on the other, the average surprise being 0.51%. The graph below depicts the surprise history of the company:
Essex Property Trust, Inc. Price and EPS Surprise
Essex Property Trust, Inc. price-eps-surprise | Essex Property Trust, Inc. Quote
Let’s see how things have shaped up before this announcement.
US Apartment Market in Q1
The U.S. apartment market entered 2026 in better shape than many investors feared, though not yet in a clean pricing recovery. RealPage reported that first-quarter demand rebounded, with absorption of nearly 93,300 units, making it one of the strongest first quarters of the past decade. The snapback helped reverse the late-2025 move-out weakness, but annual demand still ran only a little above 303,000 units, below the roughly 340,000-unit decade average.
The good news is that the new supply is finally rolling over. Roughly 367,000 units were completed in the year-ending first quarter of 2026, including about 75,200 units in the quarter itself. This is still elevated in absolute terms, but it is a major comedown from the late-2024 peak of more than 589,000-unit annual deliveries and now sits near the 10-year average annual completion volume.
National occupancy stood at 94.9% in first-quarter 2026, up 10 basis points sequentially but 20 basis points below the prior year. Rents rose 0.4% in the quarter after two consecutive quarterly declines but remained down 0.5% year over year. Concessions continue to do much of the heavy lifting: 25.5% of apartments were offering concessions, with the average incentive at 7.2%.
The weakest rent trends remain in high-supply Sun Belt markets. Austin, Denver and Phoenix posted some of the deepest annual rent cuts, while San Antonio, Tampa, FL, Nashville, TN, and Las Vegas also lost momentum. In contrast, San Francisco, San Jose, CA, and New York showed rent growth, helped by easing supply pressure and better demand. Several Midwest markets, including Chicago, St. Louis, MO, and Cleveland, OH, also posted steady gains because new supply has been more limited.
Factors to Consider Ahead of ESS' Upcoming Results
Essex Property Trust entered first-quarter 2026 with a steady setup, backed by easing supply and better trends in its core West Coast markets. Management expects demand to stay stable, with new housing supply across its markets down about 20% this year.
According to management, early-year operating trends were consistent with expectations and tied its outlook to improving momentum in West Coast markets, particularly technology-driven demand. Renewals for February and March were tracking around the low to mid-4% range.
In operations, per management, Northern California continues to recover, helped by tech activity, stronger migration and limited supply. Seattle was softer in the fourth quarter, but management still sees support from lower supply and return-to-office moves. In Los Angeles, occupancy improved again, and the market is moving closer to stabilization.
Overall, Essex started the first quarter from a solid position. A muted labor market remains the main risk, but low new supply, healthy occupancy, and a high-cost gap between owning and renting should help support rent growth.
Projections for ESS' Q1 Results
The Zacks Consensus Estimate of $480.63 million for first-quarter revenues calls for a 3.46% increase year over year. The consensus estimate for same-property revenues is pegged at $416.13 million, up from $409.15 million in the year-ago period. The consensus mark for same-property financial occupancies is currently pegged at 96.30%, on par with the prior quarter.
For first-quarter 2026, Essex Property projected core FFO per share in the range of $3.89-$4.01, with the midpoint being $3.95.
Before the first-quarter earnings release, Essex Property’s activities were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly core FFO per share has remained unrevised in the past month at $3.96. It indicates a year-over-year marginal decline of 0.25%.
What Our Quantitative Model Predicts for ESS Stock
Our proven model does not conclusively predict a surprise in terms of core FFO per share for Essex Property this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Essex Property currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector — Ventas, Inc. (VTR - Free Report) and Cousins Properties Inc. (CUZ - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
Ventas, scheduled to report quarterly numbers on April 27, has an Earnings ESP of +0.62% and carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cousins Properties is likely to report quarterly numbers around April 29. It has an Earnings ESP of +0.94% and carries a Zacks Rank of 3 at present.
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.