Stifel Cuts Essex Property Trust (ESS) PT to $278 After Q4 Review, Keeps Hold

Core Insights - Essex Property Trust, Inc. (NYSE:ESS) is recognized as one of the 13 cheapest Dividend Aristocrats for investment opportunities [1] Financial Performance - Essex reported its Q4 2025 results, with full-year same-store revenue growth reaching the top end of the company's guidance range. FFO per share exceeded the midpoint of expectations, attributed to effective coordination between on-site property teams and corporate operations [3] - Other income showed solid growth, and delinquency recovery rates improved to pre-pandemic levels [3] Regional Performance - Northern California outperformed expectations, driven by technology sector expansion, steady migration trends, and limited housing supply. Rent growth in most of Essex's markets surpassed the national average [4] - Occupancy rates increased by 20 basis points from the previous quarter to 96.3%, with concessions averaging about one week. Los Angeles experienced the largest occupancy gain, rising 70 basis points sequentially [4] Capital Allocation - Non-portfolio institutional multifamily transactions reached $12.6 billion in 2025, marking a 43% increase from 2024. Essex has been the largest investor in Northern California over the past two years [5]