Essex Property Trust Q4 2024 Earnings Report
Key Takeaways
Essex Property Trust reported a substantial increase in net income per diluted share for Q4 2024, alongside growth in Core FFO per diluted share, exceeding original guidance. Same-property revenues and NOI also saw growth, contributing to the company's strong performance.
Net Income per diluted share increased to $4.00, significantly higher compared to $1.02 in Q4 2023, driven by gains on sale of real estate and co-investment remeasurements.
Core FFO per diluted share grew by 2.3% compared to Q4 2023, exceeding the high-end of the Company’s original guidance range.
Same-property revenues and NOI grew by 2.6% and 1.7%, respectively, compared to Q4 2023.
The Company acquired Beaumont, a 344-unit apartment home community in Woodinville, WA for $136.1 million.
Essex Property Trust
Essex Property Trust
Essex Property Trust Revenue by Geographic Location
Forward Guidance
Essex Property Trust anticipates a healthy but moderating U.S. economy with the West Coast gaining relative strength. The company expects blended rate growth of 3.0% at the midpoint, driven by higher job growth and muted supply growth. Source: Essex
Positive Outlook
- Blended rate growth of 3.0% at the midpoint
- New Lease Rate Growth of 2.5% (2.0% to 3.0%)
- Renewal Rate Growth of 3.5% (3.0% to 4.0%)
- Total NOI from Consolidated Communities expects growth between $1,293,000 to $1,320,000
- 2025 guidance excludes inestimable projected gain on sale of real estate and land, gain on sale of marketable securities, loss on early retirement of debt, political/legislative costs, and promote income until they are realized within the reporting period presented in the report.
Challenges Ahead
- Preferred Equity Redemptions expects a decrese of ($0.19)
- 2025 Refinancings expects a decrease of ($0.15)
- 2024 Subordinated Loan Redemptions expects a decrease of ($0.05)
- Interest Expense before capitalized interest expects increase between ($253,300 ) and ($250,200 )
- Corporate-level property management expenses expects a decrease between ($48,000 ) and ($49,000 )