NYSE$ESS

Essex Property Trust Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Announced second quarter 2022 results and increased full-year 2022 guidance.

Essex Property Trust, Inc. reported a decrease in Net Income per diluted share but an increase in Core FFO per diluted share. Same-property revenues and net operating income increased, and the company revised its full-year earnings guidance.

  • Net Income per diluted share for the second quarter of 2022 was $0.87, compared to $1.00 in the second quarter of 2021, due to unrealized losses on marketable securities and non-core co-investments.
  • Core FFO per diluted share was $3.68, a 21.1% increase compared to the second quarter of 2021, exceeding the high-end of the Company’s guidance range.
  • Same-property revenues and net operating income increased by 12.7% and 16.7%, respectively, compared to the second quarter of 2021.
  • The Company repurchased 218,960 shares of common stock totaling $60.8 million, including commissions, at an average price per share of $277.81 under the stock repurchase program.

Headline financials

Total Revenue

$400M

Previous: $351M+14.0%
EPS (adj)

$3.68

Previous: $3.04+21.1%
FFO

$211M

Previous: $3.09+6839352650.8%
Apartment Homes

62.7K

Previous: 61.5K+1.9%
Capital Expenditures

-$13.1M

Previous: -$53.1M+75.3%
Free Cash Flow

$48.6M

Previous: $16.6M+193.6%
Net Income

$61.7M

Previous: $69.6M-11.4%
Operating Income

$129M

Previous: $93.4M+37.7%
Gross Profit

$330M

Previous: $288M+14.7%
Cash & Equivalents

$37.8M

Previous: $48.2M-21.6%
Total Assets

$12.6B

Previous: $12.7B-1.5%
Stock-Based Comp

$2.49M

Previous: $2.39M+4.3%

Revenue & EPS history

Essex Property Trust · Revenue · Quarterly

$400M

Q2 2022+14%vs Q2 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

Essex Property Trust revised its full-year 2022 earnings guidance, decreasing Net Income per diluted share guidance and increasing Core FFO per diluted share guidance.

Tailwinds

  • Increased full-year Core FFO per diluted share guidance by $0.29 at the midpoint to $14.45, representing 15.7% year-over-year growth.
  • Raised the midpoint of full-year same-property revenues and NOI by 0.7% and 1.4%, respectively.
  • Full-year same-property operating expense guidance was lowered by 0.8% at the midpoint as a result of favorable property tax assessments in Washington.
  • Return to office mandates at many of the large technology companies became a catalyst for strong housing demand in our Northern California and Seattle markets
  • Immediately available liquidity is approximately $1.3 billion as of July 22, 2022

Headwinds

  • Decreased full-year Net Income per diluted share guidance by $0.31 as a result of unrealized losses on marketable securities and non-core investments in the second quarter.
  • The COVID-19 pandemic and related variants, which remains inherently uncertain as to duration and severity, and any additional governmental measures taken to limit its spread and other potential future outbreaks of infectious diseases or other health concerns, which could continue to adversely affect the Company’s business and its tenants
  • The Company may fail to achieve its business objectives
  • The terms of any refinancing may not be as favorable as the terms of existing indebtedness
  • Volatility in financial and securities markets

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.3%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+2.1%

Avg return

30 days after

52%

35 / 67 earnings

Positive

+6.9%

Q2 2016

Best reaction

-6.3%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.9%-1.2%+1.9%
Q4 2025-0.4%+3.9%+1.0%
Q3 2025+1.2%+3.8%+6.7%
Q1 2025+1.5%+4.8%+3.2%
Q4 2024+3.0%+1.4%+5.1%
Q3 2024-1.9%-7.6%+4.4%
Q2 2024-2.7%-1.5%+4.2%
Q1 2024-1.0%+0.9%+3.1%
Q4 2023-0.6%-0.2%+5.3%
Q3 2023-1.8%+1.7%+2.1%
Q2 2023-0.9%+1.9%-0.9%
Q1 2023+6.7%+5.4%+2.1%
Q4 2022+3.8%+3.2%-0.0%
Q3 2022-6.3%-6.0%-10.1%
Q2 2022+1.3%+4.6%+3.6%
Q1 2022-1.8%-5.4%-18.7%
Q4 2021-0.5%-2.5%+2.6%
Q3 2021+2.1%+1.5%+6.7%
Q2 2021-0.9%-1.0%-3.1%
Q1 2021-3.3%-2.1%-1.8%
Q4 2020+4.0%+4.5%+6.7%
Q3 2020+1.1%+11.1%+28.0%
Q2 2020-2.9%+1.1%+0.1%
Q1 2020+1.9%-0.7%+7.4%
Q4 2019+1.2%+1.0%-8.1%
Q3 2019-1.4%-2.3%-6.1%
Q2 2019+1.0%+4.1%+6.6%
Q1 2019+0.5%+0.3%+5.1%
Q4 2018+0.9%+2.1%+3.8%
Q3 2018+3.1%-0.0%+5.0%
Q2 2018-2.6%+1.0%+2.4%
Q1 2018-1.0%+0.3%-1.0%
Q4 2017-0.2%+4.1%+8.5%
Q3 2017-3.3%-3.3%-5.9%
Q2 2017-0.9%-1.5%-0.6%
Q1 2017+1.4%+3.1%+6.3%
Q4 2016+0.6%+1.0%+4.0%
Q3 2016+0.9%+2.8%+2.6%
Q2 2016+6.9%+5.8%+1.5%
Q1 2016-1.9%
Q4 2015-3.7%
Q3 2015-1.2%
Q2 2015+1.1%
Q1 2015+2.2%
Q4 2014+0.9%
Q3 2014+3.0%
Q2 2014-0.6%
Q1 2014+2.0%
Q4 2013+3.6%
Q3 2013-0.8%
Q2 2013-1.9%
Q1 2013-1.4%
Q4 2012+0.6%
Q3 2012-1.1%
Q2 2012-0.7%
Q1 2012+1.3%
Q4 2011-1.8%
Q3 2011+0.4%
Q2 2011+3.4%
Q1 2010+2.8%
Q1 2011+2.4%
Q4 2010+5.3%
Q4 2008+5.3%
Q3 2009-2.7%
Q3 2010-2.7%
Q2 2009+0.8%
Q2 2010+0.8%

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