Core Insights - Essex Property Trust Inc. (ESS) reported fourth-quarter 2024 core funds from operations (FFO) per share of $3.92, exceeding the Zacks Consensus Estimate of $3.90 and reflecting a 2.3% year-over-year improvement [1] - Total revenues for the quarter reached $454.5 million, surpassing the Zacks Consensus Estimate of $453.1 million, and showing a 7.8% increase year over year [2] - For the full year 2024, core FFO per share was $15.60, a 3.8% increase from the previous year, and also beating the Zacks Consensus Estimate by two cents, supported by a 6.3% revenue growth to $1.77 billion [3] Financial Performance - Same-property revenues increased by 2.6% year over year in the fourth quarter, which was below the estimated 5.6% [4] - Same-property operating expenses rose by 4.7% year over year, compared to an estimated increase of 7.5% [4] - Same-property net operating income (NOI) increased by 1.7% year over year, falling short of the estimated 4.8% [4] - Financial occupancy was reported at 95.9%, down 20 basis points year over year and 30 basis points sequentially, which was below the estimated 96.1% [4] Portfolio Activity - In October, ESS acquired a 49.9% interest in the BEX II portfolio, consisting of 871 apartment units, for $337.5 million gross ($168.4 million pro rata) [5] - In November, the company acquired another community, Beaumont, with 344 apartment units for $136.1 million [5] - The company disposed of its 81.5% interest in an apartment community in San Mateo, CA, for $252.4 million gross ($205.7 million pro rata) [6] Balance Sheet Position - As of December 31, 2024, ESS had $1.3 billion in liquidity, including undrawn capacity on unsecured credit facilities, cash, cash equivalents, and marketable securities [7] - Cash and cash equivalents, including restricted cash, were reported at $75.8 million, down from $80.3 million at the end of the previous quarter [7] 2025 Guidance - For the first quarter of 2025, ESS projects core FFO per share in the range of $3.86-$3.98, with a midpoint of $3.92, compared to the Zacks Consensus Estimate of $3.93 [9] - For the full year 2025, the company projects core FFO per share in the range of $15.56-$16.06, with a midpoint of $15.81, aligning with the Zacks Consensus Estimate of $15.99 [9] - The full-year guidance is based on projections for same-property revenue growth of 2.25-3.75%, operating expense increases of 3.25-4.25%, and NOI expansion of 1.4-4.0% [10]

Core Insights - Essex Property Trust reported revenue of $454.47 million for Q4 2024, reflecting a 7.8% increase year-over-year and surpassing the Zacks Consensus Estimate of $453.08 million by 0.31% [1] - The company's EPS for the quarter was $3.92, significantly higher than $1.02 in the same quarter last year, and exceeded the consensus estimate of $3.90 by 0.51% [1] Financial Performance Metrics - Financial occupancy for the same-property portfolio was reported at 95.9%, slightly below the four-analyst average estimate of 96.2% [4] - Rental and other property revenues reached $452.05 million, exceeding the average estimate of $449.53 million from nine analysts, marking a year-over-year increase of 7.9% [4] - Management and other fees from affiliates totaled $2.42 million, falling short of the $2.47 million estimate, representing a decline of 13.8% year-over-year [4] - Same-property revenues were reported at $411.23 million, below the three-analyst average estimate of $417.64 million, but still showing a 2.7% increase year-over-year [4] - Rental income was $445.39 million, slightly below the $448.05 million estimate, with a year-over-year increase of 7.8% [4] - Net earnings per share (diluted) were reported at $4, significantly higher than the nine-analyst average estimate of $1.22 [4] Stock Performance - Over the past month, shares of Essex Property Trust have returned 4.3%, outperforming the Zacks S&P 500 composite's 1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

分组1 - Essex Property Trust (ESS) reported quarterly funds from operations (FFO) of $3.92 per share, exceeding the Zacks Consensus Estimate of $3.90 per share, and up from $3.83 per share a year ago, representing an FFO surprise of 0.51% [1] - The company achieved revenues of $454.47 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.31%, compared to $421.75 million in the same quarter last year [2] - Over the last four quarters, Essex Property Trust has consistently exceeded consensus FFO and revenue estimates [2] 分组2 - The stock has underperformed the market, losing about 0.4% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The current consensus FFO estimate for the upcoming quarter is $3.93, with expected revenues of $457.62 million, and for the current fiscal year, the estimate is $15.99 on $1.86 billion in revenues [7] - The Zacks Industry Rank places the REIT and Equity Trust - Residential sector in the bottom 19% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - Reported Net Income per diluted share for Q4 2024 was $4.00, a 292.2% increase from $1.02 in Q4 2023; full-year 2024 Net Income per diluted share was $11.54, up 82.6% from $6.32 in 2023[6] - For the three months ended December 31, 2024, net income available to common stockholders was $257,453,000, compared to $65,391,000 for the same period in 2023, representing a significant increase[37] - Net income available to common stockholders for Q4 2024 was $257.5 million, compared to $65.4 million in Q4 2023, representing a significant increase of 292.5%[50] - Funds from Operations (FFO) attributable to common stockholders and unitholders for the twelve months ended December 31, 2024, was $1,063,878,000, up from $1,013,713,000 in 2023, indicating a growth of approximately 4.9%[37] - Core Funds from Operations (Core FFO) for the three months ended December 31, 2024, was $261,517,000, compared to $254,333,000 in 2023, reflecting a year-over-year increase of about 2.5%[37] - Total revenues for the twelve months ended December 31, 2024, reached $1.77 billion, an increase of 6.3% from $1.67 billion in 2023[50] - Funds from Operations (FFO) for 2024 was $1,063.9 million, with a projected range for 2025 between $1,037.9 million and $1,071.0 million[97] Operational Metrics - Same-property revenues and NOI grew by 2.6% and 1.7% respectively in Q4 2024, and by 3.3% and 2.6% respectively for the full year, both exceeding the high-end of the original guidance[8] - Same-Property Net Operating Income (NOI) for the twelve months ended December 31, 2024, was $1,147,993,000, compared to $1,119,300,000 in 2023, showing an increase of approximately 2.6%[42] - Same-property net operating income (NOI) for Q4 2024 was $288.8 million, compared to $284.0 million in Q4 2023, reflecting a 1.0% increase[68] - Total same-property gross revenues for the twelve months ended December 31, 2024, were $1.64 billion, a 3.3% increase from $1.59 billion in 2023[75] - The company reported a net operating income (NOI) of $318,678,000 for the three months ended December 31, 2024, compared to $296,998,000 in 2023, indicating a growth of approximately 7.3%[42] Acquisitions and Dispositions - The company acquired or increased ownership in 13 apartment communities for a total contract price of $1.4 billion in 2024, while disposing of one community for $252.4 million[8] - The company acquired a total of 3,579 apartment homes in 2024, with a total contract price of $849,383,000[88] - The company sold its 81.5% interest in Hillsdale Garden for a contract price of $205,675,000 in Q4 2024[91] Guidance and Projections - For 2025, the company projects Net Income per diluted share in the range of $5.79 to $6.29, with a midpoint of $6.04[26] - Total and Core FFO for 2025 are projected to be between $15.56 and $16.06 per diluted share, with a midpoint of $15.81[26] - Estimated same-property revenue growth for 2025 is projected to be between 2.25% and 3.75%, with a midpoint of 3.00%[26] - The company expects to provide guidance for the first quarter and full-year 2025, including net income, Total FFO, and Core FFO, along with same-property growth assumptions[44] Liquidity and Capital Structure - The company has approximately $1.3 billion in liquidity as of December 31, 2024, from undrawn credit facilities, cash, and marketable securities[24] - The company reported a total debt of $6,601,617 thousand with a weighted average interest rate of 3.6%[64] - The company has a capacity of $1.2 billion for its unsecured line of credit, maturing in January 2029[61] - The interest coverage ratio stands at 540%, significantly above the required minimum of 150%[64] - The company’s unsecured debt ratio is 291%, exceeding the required threshold of 150%[64] Market Conditions and Economic Outlook - The company anticipates continued growth in occupancy rates and rental demand, despite potential challenges from competition and local economic conditions[46] - Job growth is forecasted at 1.4% for 2025, contributing to economic stability[106] - The company anticipates blended rate growth of 3.0% for 2025, driven by higher job growth in top-paying sectors[107] - Total multifamily/single-family supply in Southern California for 2024 is projected at 29,000 units, representing 0.5% of total stock[103] Expenses and Cost Management - Property operating expenses for Q4 2024 were $133.4 million, up 9.3% from $121.9 million in Q4 2023[52] - Same-property operating expenses for Q4 2024 totaled $122,469,000, a 4.7% increase from Q4 2023[76] - Year-to-date same-property operating expenses for 2024 reached $488,538,000, reflecting a 4.9% increase compared to 2023[76] - Interest expense for the twelve months ended December 31, 2024, was $232.4 million, an increase of 10.8% from $209.8 million in 2023[50] Shareholder Metrics - The Company reported diluted FFO per share of $3.69 for the three months ended December 31, 2024, down from $3.87 in the same period of 2023[37] - Core FFO per share-diluted increased by 2.3% to $3.92 in Q4 2024, compared to $3.83 in Q4 2023[54] - The number of shares used in calculating diluted net income per share was 64.3 million for Q4 2024, compared to 64.2 million for Q4 2023[50]

SAN DIEGO, Jan. 27, 2025 /PRNewswire/ -- Robbins LLP informs investors that a class action was filed on behalf of all persons and entities that purchased or otherwise acquired ESSA Pharma Inc. (NASDAQ: EPIX) securities between December 12, 2023 and October 31, 2024. ESSA is a clinical stage pharmaceutical company that focuses on the development of small molecule drugs for the treatment of prostate cancer. The Company's lead product candidate was masofaniten, which was in clinical trial in combination with e ...

Essex Property Trust (ESS) shares rallied 4.1% in the last trading session to close at $282.95. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.3% loss over the past four weeks.The increased investor optimism in the stock can be attributed to the recent announcement from BMO Capital Markets, where its research analyst upgraded the ESS rating to “Outperform” from “Market Perform.”This real estate investment ...

Essex Property Trust, Inc. (ESS) is well-poised to gain from a robust property base in the West Coast market with several demand drivers. Efforts to leverage technology, scale and organizational capabilities are expected to drive margin expansion. A healthy balance sheet augurs well. Solid dividends aid shareholder wealth.However, the rising supply of apartment units in some of the company’s markets is likely to fuel competition and curb pricing power. A concentrated portfolio and substantial debt burden re ...

Core Viewpoint - Essex Property Trust, Inc. (ESS) is positioned to benefit from a strong property base in the West Coast market, driven by demand factors, although concerns exist regarding elevated rental unit supply and a concentrated portfolio in specific markets [1]. Financial Performance - In Q3 2024, ESS reported core funds from operations (FFO) per share of $3.91, exceeding the Zacks Consensus Estimate of $3.88, and reflecting a 3.4% year-over-year improvement [2]. - The company raised its full-year 2024 guidance following favorable growth in same-property revenues and net operating income (NOI) [2]. - ESS shares have increased by 14.1% over the past six months, outperforming the industry growth of 10.1% [2]. Market Drivers - The West Coast market, home to numerous innovation and technology companies, is expected to see increased renter demand due to slowing layoffs and a return to office trend [3]. - Rental and property revenues for ESS are projected to grow by 5.7% and 3.9% year-over-year in 2024 and 2025, respectively [3]. Operational Efficiency - ESS is leveraging technology and scale to enhance margin expansion and operational efficiency, which is anticipated to positively impact both top and bottom-line growth [4]. Financial Health - As of September 30, 2024, ESS had $1.2 billion in liquidity, with a net debt-to-adjusted EBITDAre ratio of 5.5X and an unencumbered NOI to adjusted total NOI of 93% [5]. - The company’s strong balance sheet allows it to access both secured and unsecured debt markets effectively [5]. Dividend Policy - ESS has consistently raised its dividend, increasing it five times in the last five years, with a five-year annualized growth rate of 4.35% [6]. - The low dividend payout ratio and solid balance sheet suggest that dividend payments are likely to remain sustainable [6]. Competitive Landscape - The company faces challenges in attracting renters due to elevated supply volumes in certain markets and competition from various housing alternatives, which may limit rent increases [7]. - A significant concentration of assets in Southern California, Northern California, and the Seattle metropolitan area exposes the company to local market fluctuations, with 42% and 38% of its portfolio NOI derived from Southern and Northern California, respectively [8].

Shares of Essex Property Trust (ESS) have rallied 16.7% over the past six months, outperforming the industry's upside of 10.6%.This residential REIT is well-poised to gain from a robust property base in the West Coast market that has several demand drivers. A healthy balance sheet also augurs well.Last October, ESS 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.Results ...

Financial Data and Key Metrics Changes - The company reported a core FFO per share of $3.91 for Q3 2024, exceeding the midpoint of guidance by $0.04, driven by higher same property revenues [6] - The full-year core FFO guidance was raised to $15.56 per share, reflecting a 3.5% year-over-year growth, with same property revenue growth expectations increased to 3.25% [6][8] - Same property NOI growth is expected to be 2.6%, a 30 basis points increase at the midpoint [6] Business Line Data and Key Metrics Changes - The blended rate growth for Q3 was 2.5%, tempered by seasonal moderation and difficult year-over-year comparisons [2] - Seattle achieved a strong 3.8% blended rate growth, while Northern California saw 2.3% growth, led by Santa Clara County at 3.6% [3] - Southern California's blended lease rate growth was 2.1%, with LA's recovery expected to improve next year as delinquency rates decrease [3] Market Data and Key Metrics Changes - The overall supply growth is expected to be only 50 basis points in 2025, consistent with low levels in 2024 [4] - Job postings at the top 20 technology companies have been recovering, indicating a shift towards future growth and increased demand in regions like San Jose and Seattle [4] - The company noted a stable market environment with financial occupancy at 96.1% for October [3] Company Strategy and Development Direction - The company is focusing on occupancy in anticipation of slower demand typical of seasonal trends [2] - There is strong investor interest in multifamily properties on the West Coast, with cap rates trading in the mid 4% range [5] - The company plans to continue acquiring properties to drive NAV and FFO per share accretion for shareholders [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic viability of LA due to upcoming events like the World Cup and Olympics, alongside improvements in delinquency rates [11] - The company anticipates a potential reacceleration in new lease rates due to easier year-over-year comparisons and stable market conditions [39] - Management highlighted that the concessionary environment is expected to remain stable, with no significant headwinds anticipated for the upcoming months [53] Other Important Information - The company spent $10 million on advocacy expenses in Q3, with a year-to-date total of $16 million, expecting to exceed $30 million for the full year [28] - The company has maintained a strong balance sheet with low leverage and over $1 billion in liquidity [8] Q&A Session Summary Question: What gives confidence that LA Alameda County will normalize? - Management noted significant improvement in delinquency rates, from nearly 5% to 1.6%, and positive economic indicators such as the World Cup and increased tax credits for the film industry [11] Question: Can you expand on the improving tech job backdrop? - Job openings at the top 20 tech companies have reached pre-COVID levels, indicating a positive trend for future hiring [12] Question: How is the pricing strategy evolving? - The company is focusing on occupancy strategies and anticipates a deceleration in demand, with renewals being sent out in the mid-4s [15] Question: What is the impact of potential rent control repeal? - Management indicated that only 8% of California cities have active rent control, and there is confidence that Proposition 33 will be defeated based on past trends [16] Question: What are the expectations for new lease rates? - Management expects new lease rates to inflect positively due to easier year-over-year comparisons and stable market conditions [39] Question: How are advocacy costs treated in core FFO? - Management clarified that advocacy costs are not seen as recurring and are excluded from core FFO calculations [44]