Valued at a market cap of $18.4 billion, Essex Property Trust, Inc. (ESS) is a fully integrated real estate investment trust headquartered in San Mateo, California. The company acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. It is expected to announce its fiscal Q2 earnings for 2025 after the market closes on Tuesday, Jul. 29.
Ahead of this event, analysts expect this residential REIT to report an FFO of $3.99 per share, up 1.3% from $3.94 per share in the year-ago quarter. The company has a solid trajectory of consistently beating Wall Street’s FFO estimates in each of the last four quarters. In Q1, ESS’ FFO per share of $3.97 outpaced the forecasted figure by 1.3%.
For fiscal 2025, analysts expect ESS to report FFO of $15.94 per share, up 2.2% from $15.60 per share in fiscal 2024. Furthermore, its FFO per share is expected to grow 3.2% year-over-year to $16.45 in fiscal 2026.
Shares of ESS have gained 4.7% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 11.7% rise and the Real Estate Select Sector SPDR Fund’s (XLRE) 7.9% return over the same time frame.
On Apr. 29, ESS released impressive Q1 results, prompting its share price to surge 1.5% in the following trading session. The company’s same-property revenue improved 3.4% from the year-ago quarter, while its same-property net operating income rose 3.3% year-over-year to $284.9 million. Moreover, its core FFO of $3.97 per share advanced 3.7% from the same period last year and surpassed the consensus estimate by 1.3%. Looking ahead to fiscal 2025, ESS reaffirmed its core FFO per share guidance and expects it to be between $15.56 and $16.06.
Wall Street analysts are moderately optimistic about ESS’ stock, with a "Moderate Buy" rating overall. Among 26 analysts covering the stock, seven recommend "Strong Buy," two indicate "Moderate Buy," 15 suggest "Hold,” and two advise "Strong Sell” rating. The mean price target for ESS is $309.92, which indicates an 8.4% potential upside from the current levels.
