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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.
Revenue by Geographic Location
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%
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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