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Essex Property (MX:ESS)
:ESS
Mexico Market
EarningsQ2 2026 Earnings Report

Essex Property (ESS) Q2 2026 Earnings Report

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MX:ESS Q2 2026 EPS Results

Actual EPS$16.70
Consensus EPS$25.16
Beat/MissMissed by -$8.45
One Year Ago EPS$59.23

MX:ESS Q2 2026 Revenue Results

Actual Revenue$8.42B
Expected Revenue$8.35B
Beat/MissBeat by +$67.74M
YoY Revenue Growth+4.09%

Earnings Announcement Details

QuarterQ2 2026
Date07/29/2026
TimeAfter Close
Conference CallWednesday, July 29, 2026
MX:ESS Upcoming Earnings
Essex Property's next earnings date is estimated for October 28, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:ESS Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Jul 29, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call emphasized stronger-than-expected operational performance, particularly in Northern California and Seattle, leading to upward revisions to same-property NOI and core FFO guidance and reflecting solid balance sheet flexibility. Offsetting headwinds include measured national job growth, muted Southern California demand (notably LA), higher second-half operating and controllable expenses, and some one-time benefits and legal settlement uncertainties. On balance, positive execution and upgraded guidance outweigh the outlined regional and macro risks.
Company Guidance
Essex raised its full‑year guidance, increasing the midpoint of core FFO per share by $0.20 (a 1.3% lift), driven principally by a 70‑basis‑point increase to same‑property NOI to a 2.8% midpoint; same‑property revenue assumptions improved 40 bps (scheduled rent +15 bps, other income +15 bps, occupancy +10 bps) while the midpoint for operating‑expense growth was lowered 25 bps (including $0.03 of one‑time property‑tax savings), with higher same‑property growth contributing $0.12 of the FFO upgrade and non‑same‑property outperformance providing the remainder. Q2 core FFO per share exceeded the prior midpoint by $0.10, third‑quarter core FFO is guided to $3.99 at the midpoint (a $0.09 sequential decline from Q2) due to seasonal utilities, California property taxes and an expected $0.09 increase in controllable spending in H2 versus H1, and management still expects full‑year blended lease growth of roughly 2.5% (1H 2.6%, implying ~2.4% in 2H). Balance sheet remains strong with net debt/EBITDA of 5.4x, minimal maturities over the next 12 months and over $1 billion of available liquidity.
Raised Full-Year Core FFO Guidance
Increased the midpoint of full-year core FFO per share by $0.20, a 1.3% increase at the midpoint, driven by better operating performance across the portfolio.
Same-Property NOI and Revenue Upgrades
Raised the midpoint of same-property NOI growth by 70 basis points to 2.8%; same-property revenue improvement contributed 40 basis points (scheduled rent + other income each +15 bps, occupancy +10 bps). Higher same-property growth contributed $0.12 to the full-year guidance increase.
Q2 Outperformance vs Guidance
Core FFO per share in Q2 exceeded the midpoint of guidance by $0.10. Operations drove outperformance: same-property NOI accounted for $0.05 and non-same-property NOI $0.03. Property tax appeals added $0.03 of favorable one-time benefit.
Northern California Strength
Northern California delivered 6.5% blended rent growth in Q2 with strong occupancy and extended peak leasing momentum; investor demand remains strong with institutional cap rates generally mid-4% and many NorCal transactions pricing in the low-4% range.
Seattle Momentum
Seattle posted 2.6% blended rent growth in Q2 — a 340 basis point sequential increase from Q1. East Side outperformed urban core (East Side 3.2% vs urban core ~1%). March to June blended improved from 1.4% to 2.8% (≈140 bps). July blends roughly in line with Q2 and slightly better year-over-year.
Southern California Stability
Southern California generated 1.4% blended rent growth in Q2 with occupancy above 95%; Orange County led performance while Los Angeles lagged, but region characterized as stable with limited new supply supporting operations.
Strong Balance Sheet and Liquidity
Net debt-to-EBITDA of 5.4x, minimal debt maturities over the next 12 months, and over $1 billion of available liquidity, providing flexibility to fund commitments and pursue opportunities.
Non-Same-Property and Investment Execution
Prior-year Northern California acquisitions performed ahead of plan and contributed to non-same-property NOI outperformance. Preferred investment book strategically resized to ~$100M with selective redeployments; recent JV disposition in San Jose sold at mid-4% cap rate (sub 4.5%).
Development Economics Improving
Development economics have improved as rent growth has outpaced cost growth; South San Francisco project trending ahead of underwriting. Stabilized yield expectations around ~6% and underwriting target spreads of 100–150 bps over purchase yields.

MX:ESS Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Oct 28, 2026
2026 (Q3)
25.31 / -
44.082
2026 (Q2)
25.16 / 16.70
59.235-71.80% (-42.53)
2026 (Q1)
24.49 / 28.41
54.413-47.78% (-26.00)
2025 (Q4)
25.04 / 21.52
68.878-68.75% (-47.35)
2025 (Q3)
26.86 / 44.08
31.68439.13% (+12.40)
2025 (Q2)
25.45 / 59.23
24.968137.24% (+34.27)
2025 (Q1)
24.45 / 54.41
73.182-25.65% (-18.77)
2024 (Q4)
23.45 / 68.88
17.564292.16% (+51.31)
2024 (Q3)
23.25 / 31.68
23.41835.29% (+8.27)
2024 (Q2)
22.88 / 24.97
26.69-6.45% (-1.72)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed