A sturdy property base in the West Coast market, technological initiatives and a healthy balance sheet are likely to aid ESS despite the rising supply of units.
Essex Property Trust (ESS) reported earnings 30 days ago. What's next for the stock?
Boosting shareholders' wealth and confidence, ESS announces the 31st consecutive annual dividend hike of 4.9%.
A sturdy property base in the West Coast market, technological initiatives and a healthy balance sheet are likely to aid ESS despite the rising supply of units.
Essex Property Trust, Inc. has seen a 29% increase in shares over the past year due to limited supply and higher rental inflation in California markets. Solid Q4 results, including a 2.3% increase in funds from operations and low turnover rates, support a bullish outlook for Essex into 2025. Rising costs, particularly insurance and personnel, are offset by strong demand fundamentals and limited housing supply, especially post-wildfires.
Essex Property Trust, Inc. (NYSE:ESS ) Q4 2024 Results Conference Call February 5, 2025 12:00 PM ET Company Participants Angela Kleiman - President, CEO Barb Pak - EVP, CFO Rylan Burns - EVP, Chief Investment Officer Conference Call Participants Nick Yulico - Scotiabank Eric Wolfe - Citibank Austin Wurschmidt - KeyBanc Capital Markets Steve Sakwa - Evercore ISI Jeff Spector - Bank of America Jamie Feldman - Wells Fargo Brad Heffern - RBC Capital Markets Adam Kramer - Morgan Stanley Alexander Goldfarb - Piper Sandler Haendel St. Juste - Mizuho Securities John Kim - BMO Capital Markets Wes Golladay - Baird Rich Hightower - Barclays Julien Blouin - Goldman Sachs Michael Goldsmith - UBS Rich Anderson - Wedbush Securities Tayo Okusanya - Deutsche Bank Alex Kalmus - Zelman & Associates Operator Good day, and welcome to Essex Property Trust Fourth Quarter 2024 Earnings Call. As a reminder, today's call conference is being recorded.
ESS' Q4 results reflect an increment in same-property revenues and net operating income.
While the top- and bottom-line numbers for Essex Property Trust (ESS) give a sense of how the business performed in the quarter ended December 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Essex Property Trust (ESS) came out with quarterly funds from operations (FFO) of $3.92 per share, beating the Zacks Consensus Estimate of $3.90 per share. This compares to FFO of $3.83 per share a year ago.
Despite elevated supply, ESS' Q4 results are likely to show the benefits of a solid property base, healthy demand and technological initiatives.
Essex Property Trust (ESS) witnessed a jump in share price last session on above-average trading volume. The latest trend in FFO estimate revisions for the stock suggests that there could be more strength down the road.
Essex Property Trust has gained 35% over the past year, benefiting from limited new apartment supply in California and a defensive geographic positioning. Essex's markets face significantly less new supply than the Sun Belt, with just 0.5% annual supply growth expected from 2023-2025. Despite rising costs, Essex maintains a solid balance sheet and expects 4-5% growth in FFO, with a fair value target of $320-325.