Essex Property Trust Set to Report Earnings, Analysts Anticipate Steady Growth
Leading West Coast REIT Prepares for Q4 Earnings Release
Essex Property Trust, Inc. (ESS), a prominent player in West Coast multifamily housing with a market cap of $17.5 billion, manages stakes in 255 apartment communities, offering more than 62,000 homes. The company focuses on high-quality properties in prime locations, delivering value through integrated real estate operations. Essex is expected to announce its fiscal 2024 Q4 earnings results on Tuesday, Feb. 4.
Financial Outlook: FFO Projections Show Growth
Analysts predict that Essex will post a funds from operations (FFO) of $3.90 per share, which represents a 1.8% increase from the $3.83 per share recorded last year. Historically, Essex has exceeded Wall Street’s earnings estimates over the past four quarters.
For fiscal 2024, the anticipated FFO stands at $15.58 per share, marking an increase of 3.7% from the previous year’s $15.03 per share.
Stock Performance and Market Comparison
In the last year, ESS shares have increased by 9.8%, falling behind the S&P 500 Index’s gain of 24.4%. However, Essex has outperformed the Real Estate Select Sector SPDR Fund’s (XLRE) modest return over the same timeframe.
Latest Earnings Report and Analyst Sentiment
After releasing its Q3 earnings report on October 29, Essex’s shares fell over 5% within three subsequent trading sessions. The reported FFO of $3.91 per share surpassed consensus estimates, while revenue reached $450.7 million, also exceeding expectations.
Currently, the consensus among analysts remains cautious, with a “Hold” rating overall. Among the 27 analysts covering the stock, five advocate for a “Strong Buy,” one recommends a “Moderate Buy”, 19 suggest a “Hold”, and two advise a “Strong Sell.”
The average analyst price target for ESS is $309.74, indicating a potential upside of 13.6% from current levels.
On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
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