Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task. By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss. However, it's pretty easy to find cutting-edge growth stocks with th ...

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Revenues- Rental and other property While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Financial Occupancies - Same-Property Po ...

Company Performance - Essex Property Trust reported quarterly funds from operations (FFO) of $3.94 per share, exceeding the Zacks Consensus Estimate of $3.84 per share, and up from $3.77 per share a year ago [1] - The company achieved revenues of $442.36 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 2.10%, compared to $416.04 million in the same quarter last year [6] - The FFO surprise for the quarter was 2.60%, following a previous surprise of 2.41% [5][11] Market Comparison - Essex Property Trust shares have increased approximately 15.4% since the beginning of the year, compared to a 14.5% gain for the S&P 500 [2] - The company has outperformed consensus revenue estimates three times over the last four quarters [6][11] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $3.82 on revenues of $435.96 million, and for the current fiscal year, it is $15.41 on revenues of $1.73 billion [3] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [7] - The estimate revisions trend for Essex Property Trust is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [12] Industry Context - Essex Property Trust is part of the Zacks REIT and Equity Trust - Residential industry, which is currently ranked in the top 22% of over 250 Zacks industries [4] - Empirical research indicates a strong correlation between near-term stock movements and trends in estimate revisions, suggesting that investors can track these revisions for insights [9]

Exhibit 99.1 Second Quarter 2024 Earnings Release and Supplemental Data | Earnings Press Release | Pages 1 - 9 | | --- | --- | | Consolidated Operating Results | S-1 & S-2 | | Consolidated Funds from Operations | S-3 | | Consolidated Balance Sheets | S-4 | | Debt Summary | S-5 | | Capitalization Data, Public Bond Covenants, Credit Ratings and Selected Credit Ratios | S-6 | | Portfolio Summary by County | S-7 | | Operating Income by Quarter | S-8 | | Same-Property Revenue Results by County, Quarter-to-Date | ...

For the second quarter, we expect same-store property revenue growth of 2.9% and, consequently, net operating However, the struggle to lure renters is expected to have persisted in the second quarter as supply volumes are likely to have remained elevated in some of its markets. Such a competitive landscape limits the company's ability to increase rents and occupancy levels, restricting its growth momentum to some extent. Moreover, outmigration and job losses are expected to affect apartment demand. Essex Pr ...

Core Viewpoint - The article discusses the strong performance and growth potential of Essex Property Trust, Inc. (ESS), highlighting its efficient use of shareholder funds, robust financial position, and favorable market conditions in the West Coast region [2][5][10]. Financial Performance - Essex Property's trailing 12-month return on equity (ROE) stands at 9.22%, significantly higher than the industry average of 2.96%, indicating superior efficiency in utilizing shareholders' funds [2]. - The company has maintained a healthy balance sheet with $1.5 billion in liquidity as of April 29, 2024, through various financial instruments [5]. - The annualized dividend growth rate for Essex Property is 4.34%, supported by a low dividend payout ratio and solid operating platform, suggesting sustainability in dividend payments [11]. Market Position and Growth Drivers - Essex Property has substantial exposure to the West Coast market, benefiting from high median household incomes, a greater percentage of renters, and favorable demographics that drive demand for residential units [7][10]. - The company is leveraging technology and organizational capabilities to enhance operational efficiency and margin expansion, which is expected to positively impact both top-line and bottom-line growth [14]. - The demand for rental units is anticipated to increase due to high homeownership costs and a slow transition from renting to owning, with rental revenues projected to grow by 2.4% and 2.3% year-over-year in 2024 and 2025, respectively [10]. Competitive Landscape - Essex Property's stock has outperformed the industry, with a 9.1% increase over the past three months compared to the industry's 3.5% growth [13]. - The company faces competition from elevated apartment supply in some markets, which may impact pricing power [19]. - Other top-ranked stocks in the REIT sector include Invitation Homes (INVH) and BRT Apartments Corp. (BRT), with BRT Apartments receiving a Zacks Rank 1 (Strong Buy) and Invitation Homes a Zacks Rank 2 [6].

Core Insights - The company reported strong rental revenue growth driven by a 2.2% increase in scheduled rents, supported by new lease growth and renewals [3][11][13] - The core Funds from Operations (FFO) margin expanded by nearly 60 basis points to 59.7%, aided by disciplined expense management and a reduction in share count [4][27] - The company achieved a net income per diluted share of $4.25 for Q1 2024, significantly up from $2.38 in Q1 2023, primarily due to gains on co-investments [35] Financial Performance - Total rental revenue for Q1 2024 was $424.2 million, reflecting a 3.6% year-over-year growth, exceeding analyst expectations by $2.3 million [19][27] - Core FFO per diluted share rose by 4.9% year-over-year to $3.83, surpassing the analyst consensus by $0.08 [37] - The company has a forward FFO payout ratio of approximately 63%, indicating a sustainable dividend payout [20] Debt and Liquidity - The company issued $350 million of 10-year senior unsecured notes at a 5.5% interest rate, enhancing its liquidity position [2][14] - As of May 29, 2024, the company had $1.1 billion in liquidity, sufficient to cover upcoming maturities of $633 million in 2025 and $549 million in 2026 [6] Market Outlook - The company anticipates same-property revenue growth of 2.25% for 2024, an increase from the previous guidance of 1.7% [24] - The consensus forecast for core FFO per share is $15.30 for 2024, reflecting a modest growth rate of 1.8% [5][24] - The company’s dividend was increased by 6.1% to an annual distribution of $9.80, marking the 30th consecutive annual increase [28] Valuation and Investment Thesis - The current P/core FFO ratio of 17.5 is below the 10-year normal valuation multiple of 20.6, suggesting potential for valuation improvement [33] - The fair value estimate for the stock is approximately $287 per share, indicating a 7% discount to the current share price of $268 [33] - Despite the positive fundamentals, the company has been downgraded to a hold rating due to insufficient margin for a buy rating [21][42]

mgstudyo Introduction In this article, we consider an equity investment in Essex Property Trust, Inc. (NYSE:ESS) in light of Q1 2024 results. In particular, we consider the issuance of the $350 million 10-year senior unsecured note with the maturity of April 2034 relative to their current capitalization rate. We also consider the historical share buyback activity of the management team to support our thesis. We then offer an estimate of the net asset value per share of the stock using the yield of the acqui ...

F I R S T Q U A R T E R 2 0 2 4 C R E D I T U P D A T E PROPERTY TRUST. INC. | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------|----------------|--------|-----------------------------------|--------|--------|----------| | Public Bond Covenants | (1) \nQ1 '24 | Q4 '23 | & Selected Credit Ratios \nQ3 '23 | Q2 '23 | Q1 '23 | Covenant | | Debt to Total Assets 35% | | 34% | 34% | 34% | 34% | < 65% | | Secured Debt to Total Assets 5% | | 5% | 5% | 3% | 3% | < 40% | | Int ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to _________ 001-13106 (Essex Property Trust, Inc.) 333-44467-01 (Essex Portfolio, L.P.) (Commission File Number) ESSEX PROPERTY TRUST, INC. ESSEX PORTFOLIO, L.P ...