Essex Property Trust(US:ESS) ZACKS·2025-04-23 15:45Core Viewpoint - Essex Property Trust, Inc. is expected to report year-over-year growth in revenues and core funds from operations (FFO) per share for Q1 2025, with a consensus estimate of $458.76 million in revenues, reflecting a 7.45% increase [1][9]. Company Performance - In the last reported quarter, Essex Property delivered a surprise of 0.51% in core FFO per share, driven by growth in same-property revenues and net operating income [1][2]. - Over the trailing four quarters, Essex Property has consistently surpassed the Zacks Consensus Estimate, with an average surprise of 1.57% [2]. Market Conditions - The U.S. apartment market experienced strong demand in Q1 2025, with over 138,000 market-rate apartment units absorbed, marking the highest first-quarter demand on record [3]. - Occupancy rates rose to 95.2% in March 2025, the highest since October 2022, indicating a healthy rental market [5]. - Effective rents increased by 0.75% in March and 1.1% year-over-year, with the average effective rent at $1,848 [5]. Regional Insights - The Midwest and Rust Belt regions saw the highest annual rent gains, while high-supply Sun Belt metros like Austin and Phoenix faced rent cuts but showed signs of monthly rent growth in March [6]. Company Strategy - Essex Property is reallocating investments to newer communities in Northern California with less supply and higher rental growth, while disposing of non-core assets in Southern California [8]. - The company benefits from a strong presence on the West Coast, where tech-driven job creation supports rental demand [7]. Financial Projections - The consensus estimate for same-property revenues is $414.78 million, up from $409.82 million in the previous year [9]. - For Q1 2025, Essex Property projects core FFO per share between $3.86 and $3.98, with a midpoint of $3.92, indicating a year-over-year increase of 2.35% [11][12].