Essex Property Trust (ESS) Q1 2026 earnings summary

Executive summary

• Core FFO per share grew 2.3% year-over-year to $4.06, exceeding guidance midpoint by $0.11, driven by higher occupancy and strong Northern California performance.

• Net income per diluted share for Q1 2026 was $1.65, down from $3.16 in Q1 2025, mainly due to prior-year gains on real estate sales.

• Same-property revenues and NOI increased 2.9% and 4.1% year-over-year, respectively, with regional outperformance in Northern California.

• $61.9 million of common stock repurchased year-to-date at an average price of $243.76 per share.

• Dividend increased by 0.8% to $10.36 per share, marking the 32nd consecutive annual increase.

Financial highlights

• Total revenues for Q1 2026 were $484.8 million, up from $464.6 million in Q1 2025.

• Net income available to common stockholders was $106.2 million, down from $203.1 million in Q1 2025, primarily due to a $111.0 million gain on sale of real estate in Q1 2025.

• Core FFO per share-diluted was $4.06, compared to $3.97 in Q1 2025.

• Same-property revenues increased 2.9% year-over-year, driven by a 2.2% increase in average rental rates.

• Average financial occupancy for the same-property portfolio was 96.5% in Q1 2026.

Outlook and guidance

• Full-year 2026 Core FFO per diluted share guidance reaffirmed at $15.69–$16.19, with same-property revenue growth guidance at 1.7%–3.1% and NOI growth at 0.8%–3.4%.

• Guidance updated to include $90 million in early structured finance redemptions expected in Q2 2026, creating a $0.07 headwind in the second half, offset by buybacks.

• Management expects sufficient liquidity from operations, cash, marketable securities, and credit lines to meet all anticipated cash needs over the next twelve months.