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 increased 2.9% year-over-year, with NOI up 4.1%, and average financial occupancy at 96.5%.

• Over $1.7 billion in liquidity as of March 31, 2026, with $61.9 million in stock repurchases 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.

• FFO per diluted share rose 5.0% year-over-year to $4.17; Core FFO per diluted share was $4.06, up from $3.97.

• Same-property NOI reached $313.1 million, up from $300.8 million in Q1 2025.

• Debt-to-total-assets ratio was 34% in Q1 2026, with net debt to EBITDA at 5.5x and over $1 billion in available liquidity.

Outlook and guidance

• Full-year 2026 Core FFO per diluted share guidance reaffirmed at $15.69–$16.19.

• Same-property revenue growth guidance for 2026 maintained at 1.7%–3.1%; NOI growth at 0.8%–3.4%.

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

• No further redemptions expected in 2027-2028; headwind is now behind.

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