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Mar 31

Essex Property Trust Q1 2025 Earnings Report

Essex Property Trust reported solid Q1 2025 results with growth in Core FFO and same-property revenues.

Key Takeaways

Essex delivered strong Core FFO performance that beat guidance, supported by same-property revenue growth and favorable investment income. Net income declined due to prior-year gains that did not recur.

Core FFO per share rose 3.7% YoY to $3.97, beating guidance midpoint by $0.05

Net income declined YoY due to lack of 2024 gains from legal settlements and co-investments

Same-property revenue and NOI grew 3.4% and 3.3% YoY respectively

Essex acquired $345.4M in new properties and disposed of a $127M asset in Q1

Total Revenue
$465M
Previous year: $427M
+8.8%
EPS
$3.97
Previous year: $3.83
+3.7%
Funds from Operations
$265M
Previous year: $306M
-13.4%
Core FFO
$265M
Previous year: $255M
+3.9%
Total Apartment Homes
62K

Essex Property Trust

Essex Property Trust

Essex Property Trust Revenue by Geographic Location

Forward Guidance

Essex reaffirmed its 2025 full-year guidance, expecting stable Core FFO and NOI growth with solid investment activity.

Positive Outlook

  • Core FFO guidance range reaffirmed at $15.56–$16.06 per share
  • Q2 2025 Core FFO expected between $3.90–$4.02
  • Same-property revenue growth guided at 2.25% to 3.75%
  • Investment volume anticipated between $500M and $1.5B
  • Maintained strong liquidity with $1.4B in available resources

Challenges Ahead

  • Operating expenses expected to rise 3.25% to 4.25%
  • Seattle NOI growth flat YoY and down sequentially
  • Loss on early debt retirement recorded in Q1
  • Cash flow from operations not explicitly detailed
  • No update on cost of revenue or gross profit margins