Essex Property Trust Q1 2021 Earnings Report

First quarter earnings were announced, highlighting a decrease in net income per diluted share and a decline in core FFO per diluted share, while same-property revenues and NOI experienced a year-over-year decrease, but improved sequentially.

Key Takeaways

Essex Property Trust's first quarter results exceeded initial guidance, with the company cautiously optimistic about economic recovery due to declining COVID cases and increased vaccinations. Large tech employers in their markets are accelerating hiring and reopening offices, which is expected to improve apartment demand.

Net Income per diluted share decreased to $2.59, compared to $4.76 in Q1 2020, mainly due to a gain on remeasurement of co-investments in the previous year.

Core FFO per diluted share declined by 11.8% compared to Q1 2020.

Same-property gross revenues and NOI decreased by 8.1% and 12.3%, respectively, compared to the same quarter last year, attributed to lower scheduled rents and higher cash concessions.

Sequential improvement was seen with same-property gross revenues and NOI increasing by 0.1% compared to Q4 2020, driven by reduced cash concessions and delinquency.