Essex Property Trust (ESS) Q2 2026 earnings summary

Executive summary

• Delivered a strong first half of 2026, outperforming expectations due to operational execution and favorable West Coast multifamily fundamentals.

• Net income per diluted share for Q2 2026 was $0.97, down from $3.44 in Q2 2025 due to a prior-year gain on real estate sales and legal settlements.

• Core FFO per diluted share grew 1.2% year-over-year to $4.08, surpassing guidance midpoint by $0.10.

• Same-property revenue and NOI increased 2.7% and 2.6% year-over-year, with occupancy stable at 96.3%.

• Disposed of a co-investment apartment community for $105.3 million and received $87.8 million from structured finance redemptions.

Financial highlights

• Q2 2026 total revenues were $489.0 million, up 4.1% year-over-year; six-month revenues were $973.8 million, up 4.2%.

• Core FFO per share exceeded guidance midpoint by $0.10 in Q2, driven by operational outperformance.

• Same-property NOI contributed $0.05 and non-same-property NOI $0.03 to the outperformance.

• Property tax savings from successful Prop 8 appeals provided a one-time $0.03 benefit.

• Legal settlements totaling $55.8 million impacted net income and FFO.

Outlook and guidance

• Raised full-year 2026 Core FFO guidance midpoint by $0.20 to $16.14 per diluted share.

• Full-year same-property revenue and NOI growth guidance midpoints increased to 2.8%.

• Q3 2026 Core FFO guidance midpoint set at $3.99 per diluted share.

• Management expects continued stability in occupancy and rental demand, supported by strong West Coast job markets.

• 2027 supply outlook is favorable, with further declines in new deliveries expected.