Companies /Real Estate

Essex Property Trust Inc

NYSE: ESS Reit - Residential
$274.76
▲ $3.37 (+1.24%) today
Markets closed · 7:51pm ET

Q2 2026 Earnings

Reported Jul 29, 2026, 4:34pm ET · SEC source
$4.08
Beat +177.74%
EPS · est. $1.47
$489.0M
Beat +0.76%
Revenue · est. $485.4M
−3.0%
Trailing market
ESS vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−3%0Jul 29Jul 30report 4:34pm ETearnings+2.1%−5.0%
−6%−3%0Jul 29Jul 30earnings+2.1%−5.0%
ESS −5.0%S&P 500 +2.1%
−6%−3%0+3%Jul 29Jul 30report 4:34pm ETearnings+3.8%−5.0%
−6%−3%0+3%Jul 29Jul 30earnings+3.8%−5.0%
ESS −5.0%NASDAQ +3.8%
−4%0+4%Jul 28Aug 6report 4:34pm ETearnings+5.5%−3.9%
−4%0+4%Jul 28Aug 6earnings+5.5%−3.9%
ESS −3.9%S&P 500 +5.5%
−5%0+5%+10%Jul 28Aug 6report 4:34pm ETearnings+8.3%−3.9%
−5%0+5%+10%Jul 28Aug 6earnings+8.3%−3.9%
ESS −3.9%NASDAQ +8.3%
−5.03%
Day of report
+0.81%
Next session
+1.16%
One week
+0.39%
30 days

S&P 500 over the same 30 days: +3.42%.

Did ESS Beat Earnings? Q2 2026 Results

Essex Property Trust delivered a strong second quarter for 2026, with Core FFO per diluted share of $4.08 clearing the consensus estimate of $1.47 by 177.74%, while revenue of $489.05 million edged past expectations by 0.76% and grew 4.1% year over year. The outperformance was driven primarily by stronger-than-anticipated same-property and non-same-property net operating income, with Northern California emerging as the standout region, posting 4.4% same-property revenue growth and 6.8% NOI growth led by San Francisco at 7.0%. Portfolio-wide financial occupancy held at 96.3%, and new lease rate growth turned positive at 1.0%, a notable improvement from negative 2.4% in the prior quarter. Analysts have taken note, with at least one firm lifting its price target on the stock following results. Looking ahead, Essex raised its full-year 2026 Core FFO guidance midpoint by $0.20 to $16.14 per diluted share, representing 1.3% year-over-year growth, while setting third-quarter Core FFO guidance at $3.93 to $4.05 per diluted share.

Key Takeaways
  • Same-property revenue growth of 2.7% YoY driven by 2.2% scheduled rent growth and 0.6% other income growth
  • Northern California led performance with 4.4% revenue growth and 6.8% NOI growth YoY
  • San Francisco same-property revenue grew 7.0% YoY, the strongest individual market
  • New lease rate growth turned positive at 1.0% in Q2 after negative rates in prior quarters
  • Blended lease rate growth of 3.6% with 4.8% renewal growth
  • Financial occupancy of 96.3% across the same-property portfolio, up 10 bps YoY
  • Higher non-same-property NOI contributed $0.03 per share above guidance midpoint
  • Same-property operating expenses rose 2.8% YoY in Q2 driven by utilities (+8.3%) and real estate taxes (+3.3%), offset by flat personnel costs and lower insurance (-1.8%)
  • Same-property NOI of $316,831 thousand in Q2 2026 vs $308,724 thousand in Q2 2025

Forward Guidance & Outlook

Essex raised its full-year 2026 Core FFO guidance to $16.03-$16.25 per diluted share (midpoint $16.14, up $0.20 from prior guidance), representing 1.3% year-over-year growth. Full-year net income guidance was revised to $5.47-$5.69 per diluted share (midpoint $5.58, down $0.29 due to legal settlements). Same-property revenue, operating expense, and NOI growth guidance midpoints were all revised to 2.8% on a cash basis (2.9% on a GAAP basis for revenue and NOI). Q3 2026 Core FFO guidance was set at $3.93-$4.05 per diluted share (midpoint $3.99), with sequential declines expected from higher utility costs, property tax timing, and controllable spend timing. Full-year NOI from consolidated communities is guided at $1,365,500-$1,377,500 thousand. Full-year interest expense before capitalized interest is guided at $264,600 thousand (low) to $264,600 (high). Full-year G&A is guided at $62,000-$64,000 thousand.

ESS YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$200.0M$400.0M$469.8M$489.0MRevenue$279.7M$109.4MOperating Income$221.3M$62.5MNet Income
$0$200.0M$400.0MRevenueOperating IncomeNet Income

ESS Revenue by Segment

Same-Property$446.0M+2.7%
Same-Property Portfolio
Same-Property Residential
Same-Property Southern California
Same-Property Northern California
Same-Property Seattle Metro
Acquisitions Portfolio
Acquisitions$21.5M

ESS Revenue by Geography

Southern California$184.8M+1.5%
Northern California$181.7M+4.4%
Seattle Metro$79.6M+1.7%

Figures from SEC filings and company reports. Not investment advice.