Essex Property to Report Q3 Earnings: Here's What to Expect

Core Insights - Essex Property Trust, Inc. (ESS) is expected to report third-quarter 2025 results on October 29, with anticipated year-over-year growth in revenues and core funds from operations (FFO) per share [1][9] Company Performance - In the last reported quarter, Essex Property achieved a 1.00% surprise in core FFO per share, driven by growth in same-property revenues and net operating income [2] - Over the past four quarters, Essex Property has consistently surpassed the Zacks Consensus Estimate, with an average surprise of 0.89% [2] - For Q3 2025, revenues are projected to increase by 5.51% year-over-year to $475.51 million, with core FFO per share expected to be between $3.89 and $3.99 [9][15] Market Conditions - The U.S. apartment market experienced a slowdown in Q3 2025, with effective asking rents declining by 0.3% from July to September, marking the first rent cut in this period since 2009 [3] - Approximately 637,000 market-rate apartments were absorbed in the year-ending Q3 2025, a decrease from nearly 784,900 units absorbed in the previous quarter [4] - Construction of about 474,800 units was completed nationwide over the past year, with 105,500 units completed in Q3 alone, indicating a competitive environment for landlords [5] Regional Insights - Essex Property is well-positioned due to its significant exposure to the West Coast market, which benefits from higher median household incomes and favorable demographics [8][10] - The company reported superior same-property revenue and core FFO growth compared to peers, largely attributed to strength in Northern California [11] Financial Projections - The consensus estimate for same-property revenues in Q3 is $414.33 million, slightly up from $413.21 million in the previous year [13] - Financial occupancy is projected at 96.4%, reflecting a 20 basis points increase sequentially, while interest expenses are expected to rise by 9.1% year-over-year [14]