ESS Earnings Prediction
The chart below shows how ESS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ESS sees a -0.24% change in stock price 10 days leading up to the earnings, and a +1.03% change 10 days following the report. On the earnings day itself, the stock moves by -0.40%. This data can give you a slight idea of what to expect for the next quarter's release.
ESS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
454.47M
7.76%
0.84%
Gross Margin
70.65%
84.18%
87.30%
Operating Margin
28.37%
-8.37%
-0.73%
Net Margin
66.38%
297.96%
138.43%
EPS
4.00
292.16%
117.39%
No Data Available
ESS Earnings Analysis
Essex Property Trust Inc Corporation (ESS.N) Earnings Conference Call
Positive
Strong Revenue and FFO Growth: Same-property revenue growth of 3.3% and core FFO growth of 3.8%, both exceeding the high end of original guidance.
Blended Lease Rate Growth: Achieved 1.6% blended lease rate growth in Q4, with Orange County and Santa Clara County leading at 2.7% growth.
Occupancy Rate Improvement: Occupancy increased by 40 basis points to 96.3% in January, with concessions improving to less than half a week on average.
Bad Debt Reduction Success: Reduced bad debt by over 50% year-over-year, with delinquency improving to 60 basis points of scheduled rent on a cash basis.
Projected NOI Growth: Forecasted same-property NOI growth of 2.7% at the midpoint, with a projected acquisition of $1 billion in new apartment communities.
Negative
Quarterly Revenue Growth Analysis: Same-property revenue growth for the quarter was only 2%, significantly lower than the 3.2% growth that would have been achieved without non-cash adjustments.
Modest Core FFO Growth: Core FFO growth is projected at only 1.3% year-over-year, indicating a modest increase that reflects headwinds from higher interest expenses and lower structured finance income.
Operating Expenses Forecast: Operating expenses are forecasted to grow by 3.75% at the midpoint, which could pressure overall profitability despite improvements in controllable expenses.
Bond Refinancing Impact: The company anticipates refinancing $500 million in unsecured bonds at a higher interest rate than the current 3.5%, which will negatively impact future earnings.
Structured Finance Income Decline: Structured finance income is expected to decline due to $150 million in redemptions, which will further constrain core FFO growth in 2025.
ESS FAQs
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ESS Earning Call Sentiment
Essex Property Trust, Inc. (NYSE:ESS) Q4 2024 Earnings Call Transcript
ESS.N
0.11%Positive
The earnings call presents a mixed picture: positive elements include raised guidance for core FFO and same-property revenue, strong liquidity, and strategic acquisitions. However, there are concerns about higher interest expenses, lower structured finance income, and vague management responses on key issues like regulatory impacts and growth timelines. The Q&A reveals uncertainties in renewal rates and potential regulatory impacts in LA, which could temper investor enthusiasm. Without market cap information, the overall sentiment leans neutral, balancing optimism with caution.
