Essex Property Trust (ESS) investor relations material

Executive summary

• Q3 Core FFO per diluted share rose 0.8% YoY to $4.00, $0.01 above the guidance midpoint; same-property revenue and NOI grew 3.0% and 3.1%.

• Stronger operating results lifted FY 2026 guidance, while prior-year property-sale gains and a Marina City Club impairment weighed on reported earnings.

• Low expected supply and West Coast fundamentals support rent growth, though the timing and pace of 2027 acceleration remain uncertain.

Financial highlights

• Q3 revenue was $492.7M versus $473.3M; same-property revenue increased 3.0% to $449.9M, and NOI rose 3.1% to $313.2M.

• Q3 diluted EPS was $1.52 versus $2.56; net income available to common stockholders was $98.1M versus $164.6M, reflecting prior-year sale gains and a $10.7M impairment.

• Nine-month Core FFO was $12.15 per share versus $11.96; nine-month revenue was $1.466B versus $1.408B.

• Nine-month G&A rose to $109.7M from $51.5M, including $36.5M for the RealPage matter and $19.3M for another litigation settlement.

Outlook and guidance

• FY 2026 net income guidance midpoint increased $0.10 to $5.68 per diluted share; Core FFO midpoint rose $0.02 to $16.16, while Total FFO remained $15.48.

• Cash-basis same-property guidance: revenue 2.8%–3.0% (midpoint 2.9%, up 10 bps), expenses 2.6%–2.9% (midpoint 2.8%, unchanged), and NOI 2.8%–3.2% (midpoint 3.0%, up 20 bps).

• Q4 Core FFO guidance is $3.95–$4.07 per diluted share; FY blended rent growth is expected at ~2.9%, with the revenue outlook improvement entirely from scheduled rent growth.

• Q4 renewal rates are expected in the mid-4% range; 2027 renewal earn-in is estimated at ~155–160 bps versus ~85 bps last year.

• 2027 property tax growth is expected to return to 3%–4%, after favorable appeals limited 2026 growth to 60 bps YoY; Q4 controllable expense growth is expected at ~5% YoY due to project timing.