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Dec 31, 2024
Essex Property Trust Q4 2024 Earnings Report
Essex Property Trust's Q4 2024 performance was marked by significant net income growth, driven by gains on real estate sales and co-investment remeasurements, alongside strong Core FFO per diluted share growth exceeding original guidance, primarily due to favorable same-property revenue growth.
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
Revenue by Geographic Location
Southern California Revenue
CapyFin.comNorthern California Revenue
CapyFin.comSeattle Metro Revenue
CapyFin.com 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 )