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Jun 30, 2021

Essex Property Trust Q2 2021 Earnings Report

Announced second quarter 2021 results and increased full-year 2021 guidance.

Key Takeaways

Essex Property Trust reported second quarter results with Core FFO and same-property revenues exceeding expectations. The company is confident in the West Coast economies and strength of their housing markets.

Net Income per diluted share for the second quarter of 2021 was $1.00, compared to $1.29 in the second quarter of 2020.

Core FFO per diluted share was $3.04, exceeding the high-end of the Company’s guidance range due to better-than-expected operating results.

Same-property revenues and net operating income (“NOI”) declined by 3.0% and 4.2%, respectively, compared to the second quarter of 2020.

As of July 27, 2021, the Company’s immediately available liquidity is approximately $1.3 billion.

Total Revenue
$351M
Previous year: $370M
-5.3%
EPS
$3.04
Previous year: $3.16
-3.8%
FFO per share, diluted
$3.09
Previous year: $217M
-100.0%
Total Apartment Homes
61.49K
Previous year: 62.37K
-1.4%
Gross Profit
$234M
Previous year: $252M
-6.9%
Cash and Equivalents
$58.2M
Previous year: $246M
-76.4%
Total Assets
$12.7B
Previous year: $13.2B
-3.3%

Essex Property Trust

Essex Property Trust

Essex Property Trust Revenue by Geographic Location

Forward Guidance

For the third quarter of 2021, the Company has established a range for Core FFO per diluted share of $2.98 to $3.10.

Positive Outlook

  • The Company is raising full-year Net Income per diluted share guidance range to $5.42 to $5.66.
  • The Company is raising full-year Core FFO per diluted share guidance by $0.09 per share at the midpoint to a range of $12.21 to $12.45.
  • The Company is raising the midpoint of full-year same-property revenues to the high-end of the prior guidance range, representing a 0.5% increase at the midpoint to -1.4%.
  • The Company is increasing NOI 0.8% at the midpoint to -3.0%.
  • The Company is raising full-year Core FFO per diluted share guidance by $0.09 per share at the midpoint to a range of $12.21 to $12.45.

Revenue & Expenses

Visualization of income flow from segment revenue to net income