San Mateo, California-based Essex Property Trust, Inc. (ESS) acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. With a market cap of $16.9 billion, the company has ownership interests in 256 apartment communities comprising over 62,000 apartment homes with an additional property in active development. The fully integrated REIT is expected to announce its fiscal first-quarter earnings for 2025 after the market closes on Tuesday, Apr. 29.
Ahead of the event, analysts expect ESS to report an FFO of $3.92 per share on a diluted basis, up 2.4% from $3.83 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s FFO estimates in its last four quarterly reports.
For the full year, analysts expect ESS to report FFO of $15.98 per share, up 2.4% from $15.60 in fiscal 2024. Its FFO is expected to rise 3.1% year over year to $16.48 per share in fiscal 2026.
ESS stock has outperformed the S&P 500’s ($SPX) 5.5% gains over the past 52 weeks, with shares up 14% during this period. Similarly, it outperformed the Real Estate Select Sector SPDR Fund’s (XLRE) 6.8% gains over the same time frame.
ESS has a strong presence in the West Coast market, benefiting from job creation and income growth in the technology industry. The company is focused on driving margin expansion and operational efficiency through technology and scale, positioning it for continued growth.
On Feb. 4, ESS reported its Q4 results, and its shares closed up more than 3% in the following trading session. Its core FFO of $3.92 per share surpassed Wall Street estimates of $3.90 per share. The company’s revenue was $454.5 million, exceeding Wall Street forecasts of $453.1 million. The company expects full-year core FFO in the range of $15.56 to $16.06 per share.
Analysts’ consensus opinion on ESS stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 27 analysts covering the stock, seven advise a “Strong Buy” rating, one suggests a “Moderate Buy,” 17 give a “Hold,” and two recommend a “Strong Sell.” ESS’ average analyst price target is $310.64, indicating a potential upside of 13.9% from the current levels.
