NYSE$ESS

Essex Property Trust Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Announced second quarter 2023 results, exceeding core FFO guidance and raising full-year outlook.

Essex Property Trust, Inc. reported strong second quarter 2023 results, with Net Income per diluted share at $1.55 and Core FFO per diluted share growing by 2.4% year-over-year. The company exceeded the midpoint of its Core FFO guidance range and raised its full-year 2023 earnings guidance, driven by higher same-property revenues and net operating income.

  • Net Income per diluted share for Q2 2023 was $1.55, compared to $0.87 in Q2 2022, driven by increased income from marketable securities and non-core co-investments.
  • Core FFO per diluted share grew by 2.4% compared to Q2 2022, exceeding the midpoint of the guidance range by $0.08, primarily due to higher same-property revenues and lower property taxes in Washington.
  • Same-property revenues and NOI increased by 4.0% and 3.6%, respectively, compared to Q2 2022, with sequential improvements of 1.4% and 2.4%, respectively.
  • Full-year 2023 earnings guidance was revised upwards, with Net Income per diluted share guidance increased by $0.31 at the midpoint and Core FFO per diluted share guidance increased by $0.22 at the midpoint.

Headline financials

Total Revenue

$416M

Previous: $400M+4.0%
EPS (adj)

$3.77

Previous: $3.68+2.4%
FFO

$257M

Previous: $211M+21.8%
Capital Expenditures

-$28.4M

Previous: -$13.1M-117.3%
Free Cash Flow

$77.3M

Previous: $48.6M+59.1%
Net Income

$106M

Previous: $61.7M+71.4%
Operating Income

$135M

Previous: $129M+4.8%
Gross Profit

$342M

Previous: $330M+3.6%
Cash & Equivalents

$60.9M

Previous: $37.8M+61.4%
Total Assets

$12.2B

Previous: $12.6B-2.5%
Stock-Based Comp

$1.82M

Previous: $2.49M-26.8%

Revenue & EPS history

Essex Property Trust · Revenue · Quarterly

$416M

Q2 2023+4%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

Essex Property Trust revised its full-year 2023 guidance, increasing the midpoint for Net Income per diluted share, Total FFO, Core FFO per diluted share, and same-property growth.

Tailwinds

  • Increased full-year Net Income per diluted share guidance by $0.31 at the midpoint to a range of $6.74 to $6.98.
  • Increased full-year Total FFO guidance by $0.32 at the midpoint to a range of $15.13 to $15.37.
  • Increased full-year Core FFO per diluted share guidance by $0.22 at the midpoint to a range of $14.88 to $15.12.
  • Raised the midpoint of full-year same-property revenues to 4.38%.
  • Lowered the full-year same-property operating expense midpoint to 4.00%.

Headwinds

  • Guidance excludes inestimable projected gain on sale of marketable securities.
  • Guidance excludes loss on early retirement of debt.
  • Guidance excludes political/legislative costs.
  • Guidance excludes promote income until they are realized within the reporting period presented in the report.
  • Macro uncertainty remains elevated near-term, with inflation a key catalyst

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 2023

Historical avgQ2 2023

+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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