Essex Property Trust, Inc. (ESS), a California-based leader in West Coast multifamily housing with a $17.5 billion market cap, owns stakes in 255 apartment communities totaling over 62,000 homes. Focused on high-quality properties in prime markets, Essex delivers value through its integrated real estate operations. The REIT is all set to unveil its fiscal 2024 Q4 earnings results on Tuesday, Feb. 4.
Ahead of this event, analysts project the company to report an FFO of $3.90 per share, reflecting a 1.8% jump from $3.83 per share registered in the year-ago quarter. The company has consistently surpassed Wall Street's bottom-line estimates in the last four quarterly reports.
Analysts project the company to report an FFO of $15.58 per share in fiscal 2024, up nearly 3.7% from $15.03 per share recorded in fiscal 2023.
Over the past year, ESS shares have gained 9.8%, underperforming the broader S&P 500 Index’s ($SPX) 24.4% gain, but have outpaced the Real Estate Select Sector SPDR Fund’s (XLRE) marginal return over the same period.
The company posted its Q3 earnings report on Oct. 29, and its shares dropped more than 5% in the next three trading sessions. Its FFO of $3.91 per share was well above the consensus estimate. The company posted revenue of $450.7 million in the period, also exceeding Street forecasts.
Analysts' consensus view on Essex Property stock is cautious, with a "Hold" rating overall. Out of 27 analysts covering the stock, five suggest a "Strong Buy," one advises "Moderate Buy," 19 recommend a "Hold,” and the remaining two advocate a “Strong Sell.”
The average analyst price target for ESS is $309.74, suggesting a potential upside of 13.6% from current price levels.
