Loading...
•
Dec 31, 2022
Essex Property Trust Q4 2022 Earnings Report
Announced fourth quarter and full-year 2022 results, exceeding expectations and continuing recovery from the COVID-19 pandemic.
Key Takeaways
Essex Property Trust, Inc. reported strong results for the fourth quarter and full year 2022, exceeding expectations with a significant increase in Core FFO. The company's recovery from the economic disruption caused by the COVID-19 pandemic continued, driven by strong job growth on the West Coast.
Net Income per diluted share for Q4 2022 was $2.86, compared to $2.10 in Q4 2021.
Core FFO per diluted share grew by 16.0% compared to Q4 2021, exceeding the high-end of the Company’s original guidance range.
Same-property revenue and NOI grew by 10.5% and 13.3%, respectively, compared to Q4 2021.
Repurchased 149,209 shares of common stock in the fourth quarter, totaling $31.8 million.
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, expecting same-property NOI growth between 2.3% and 4.9%.
Positive Outlook
- Includes a range of same-property NOI growth of 2.3% to 4.9%
- Management Fees 10,700 to 11,700
- Interest capitalized 100 to 700
- FFO from co-investments 109,600 to 113,100
- Interest and other income 15,500 to 17,500
- Structured finance redemptions are expected to be approximately $100 million, the proceeds of which will be reinvested back into structured finance investments or other new investments, subject to market conditions and cost of capital.
Challenges Ahead
- Interest expense, before capitalized interest (207,400) to (203,800)
- General and administrative (55,500) to (57,500 )
- Corporate-level property management expenses (45,200) to (46,200)
- Non-controlling interest (12,100) to (11,100)
- Net delinquency is forecasted to reduce same-property revenue growth by 70 basis points in 2023.
- Total development spending in 2023 for one existing project under construction is expected to be approximately $15 million at the Company’s pro rata share.
Revenue & Expenses
Visualization of income flow from segment revenue to net income