Essex Property Trust (ESS) Q1 2026 Earnings
Q1 2025 included a $111.0 million gain on sale of real estate and land with no comparable gain in Q1 2026, depressing the year-over-year GAAP EPS comparison. Core FFO per diluted share of $4.06 is the REIT-industry preferred non-GAAP metric.
Did ESS Beat Earnings? Q1 2026 Results
Yes. Essex Property Trust reported Q1 2026 earnings of $1.65 a share on Apr 28, 2026, beating the $1.43 consensus estimate by 15.5%. Revenue was $484.8M against a $479.4M estimate.
Essex Property Trust delivered a strong first quarter for 2026, with GAAP diluted EPS of $1.65 clearing the $1.43 consensus by 15.55% and revenue of $484.76 million edging past estimates by 1.12% on 4.3% year-over-year growth. The headline GAAP figure looks softer against the prior-year period's $3.16, but that gap is almost entirely a function of a $111.03 million gain on real estate and land sales recorded in Q1 2025 with no comparable item this quarter. The more telling metric for a REIT, Core FFO per diluted share, came in at $4.06, growing 2.3% year-over-year and beating the midpoint of Essex's own guidance range by $0.11, driven by same-property NOI growth of 4.1% on operating expense increases of just 0.2%. Northern California was the standout region, posting 5.6% NOI growth. Analysts have taken note, with at least one firm raising its price target following the results. Looking ahead, Essex reaffirmed its full-year Core FFO guidance of $15.69 to $16.19 per diluted share while raising its Total FFO midpoint by $0.17.
- Same-property revenue growth of 2.9% YoY driven by 2.2% scheduled rent increases, 0.2% vacancy improvement, and 0.5% other income growth
- Same-property operating expenses grew only 0.2% YoY, boosted by a 2.7% decline in real estate taxes and 4.4% decline in maintenance and repairs
- Northern California led regional performance with 3.9% revenue growth and 5.6% NOI growth
- Financial occupancy improved to 96.5% from 96.3% a year ago
- Annualized turnover declined to 33% from 35% year-over-year
- Equity income from co-investments increased to $23.6 million from $13.2 million in Q1 2025
What Was Essex Property Trust's Outlook in Q1 2026?
Essex reaffirmed its full-year 2026 Core FFO guidance of $15.69 to $16.19 per diluted share (midpoint $15.94). Full-year Total FFO guidance was raised to $15.71–$16.21 per diluted share (midpoint $15.96, up $0.17), updated to reflect an additional $90 million in early structured finance redemptions expected in Q2. Full-year net income guidance was raised to $5.62–$6.12 per diluted share (midpoint $5.87, up $0.07). Q2 2026 Core FFO guidance was set at $3.92–$4.04 per diluted share. Same-property revenue growth guidance was maintained at 1.70%–3.10% (midpoint 2.40%), same-property operating expenses at 2.50%–3.50% (midpoint 3.00%), and same-property NOI at 0.80%–3.40% (midpoint 2.10%).
ESS YoY Financials
| Metric | Q1 2026 | Q1 2025 | Year over year |
|---|---|---|---|
| Revenue | $484.8M | $464.6M | +4.3% |
| Operating Income | $155.2M | $257.1M | −39.6% |
| Net Income | $106.2M | $203.1M | −47.7% |
ESS Revenue by Segment
ESS Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.