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Mar 31, 2023
Essex Property Trust Q1 2023 Earnings Report
Announced first quarter 2023 results and increased full-year guidance.
Key Takeaways
Essex Property Trust reported strong first quarter 2023 results, with Net Income per diluted share at $2.38, Total FFO per diluted share at $3.80, and Core FFO per diluted share at $3.65. The company exceeded its Core FFO guidance and increased its full-year outlook.
Net Income per diluted share for the first quarter of 2023 was $2.38, compared to $1.12 in the first quarter of 2022.
Core FFO per diluted share grew by 8.3% compared to the first quarter of 2022, exceeding the midpoint of the guidance range by $0.08 primarily due to favorable same-property revenues.
Same-property revenue and net operating income (“NOI”) growth of 7.6% and 9.2%, respectively, compared to the first quarter of 2022 were achieved.
Full-year Core FFO per diluted share guidance increased by $0.03 at the midpoint to a range of $14.59 to $14.97.
Essex Property Trust
Essex Property Trust
Essex Property Trust Revenue by Geographic Location
Revenue by Geographic Location
Southern California Revenue
CapyFin.comNorthern California Revenue
CapyFin.comSeattle Metro Revenue
CapyFin.com Forward Guidance
Essex Property Trust provided full-year 2023 guidance, increasing Net Income per diluted share and Core FFO per diluted share while reaffirming same-property growth ranges.
Positive Outlook
- Full-year Net Income per diluted share guidance increased by $0.98 at the midpoint to a range of $6.36 to $6.74.
- Full-year Core FFO per diluted share guidance increased by $0.03 at the midpoint to a range of $14.59 to $14.97.
- Same-property revenue growth on a GAAP basis is expected to be 4.40%.
- Operating expenses growth on a cash-basis is expected to be 4.50% to 5.50%.
- NOI growth on a cash-basis is expected to be 2.30% to 4.90%.
Challenges Ahead
- 2023 GDP Growth = +0.4%
- Dec-23 unemployment rate = 4.7%, US Job Growth = -0.2% (TTM avg)
- High mortgage rates shift rent/buy equation, supporting rental demand
- 2023 Supply growth in ESS markets remains below 1%
- Macro uncertainty remains elevated near-term, with inflation a key catalyst
Revenue & Expenses
Visualization of income flow from segment revenue to net income