With a market cap of $17.3 billion, Essex Property Trust, Inc. (ESS) is a fully integrated real estate investment trust (REIT) specializing in the acquisition, development, redevelopment, and management of multifamily residential properties. Established in 1971 and headquartered in San Mateo, California, Essex focuses on supply-constrained markets along the West Coast, including Southern California, Northern California, and the Seattle metropolitan area.
The residential REIT has trailed the broader market over the past year. ESS stock has soared 4.5% over the past 52 weeks but is down 5.6% on a YTD basis. Meanwhile, the S&P 500 Index ($SPX) has surged 10.2% over the past year and plunged 1.3% in 2025.
Zooming in further, Essex has also lagged behind the Residential REIT ETF’s (HAUS) 5.1% gains over the past year and 5.1% fall on a YTD basis.
ESS reported its first quarter 2025 results on Apr. 29, and its shares climbed 1.5% in the next trading session. Its core FFO per share rose 3.7% year-over-year to $3.97, surpassing guidance expectations. While net income per share declined 25.6% to $3.16 due to one-time gains in the prior year, same-property revenue and NOI increased by 3.4% and 3.3%, respectively.
The company expanded its portfolio by acquiring three Northern California communities for $345.4 million and sold an older property in Southern California for $127 million. It also issued $400 million in 10-year senior unsecured notes and raised its annual dividend by 4.9% to $10.28 per share, marking its 31st consecutive annual increase.
For FY2025 ending in December, analysts expect ESS’ core FFO to rise 2.1% year over year to $15.93 per share. The company boasts a robust FFO surprise history. It has surpassed the Street’s FFO estimates in each of the past four quarters.
Among the 27 analysts covering the ESS stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy,” one “Moderate Buy,” 17 “Hold,” and two “Strong Sell” ratings.
On May 23, Mizuho analyst Vikram Malhotra reiterated an “Outperform” rating on Essex Property but lowered the price target from $314 to $293.
ESS’ mean price target of $310.58 represents a modest 15.3% premium to current price levels, while its street-high target of $370 indicates a notable 37.3% upside potential.
