A Business at a Glance
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ESSEX PROPERTY TRUST, INC.
ESS
$18.9B
Mkt Cap
$293.46
+0.09%
ESSEX PROPERTY TRUST, INC. (ESS) has a current P/E ratio of 28.2, compared to its historical median P/E of 28.7. The stock is currently considered Fair based on its historical valuation range.
ESSEX PROPERTY TRUST, INC. (ESS) has a 5-year average return on invested capital (ROIC) of 9.5%. This is below average and may indicate limited pricing power.
ESSEX PROPERTY TRUST, INC. (ESS) has a market capitalization of $18.9B. It is classified as a large-cap stock.
Yes, ESSEX PROPERTY TRUST, INC. (ESS) pays a dividend with a trailing twelve-month yield of 3.51%.
Based on historical P/E analysis, ESSEX PROPERTY TRUST, INC. (ESS) appears fair. The current P/E of 28.2 is 2% below its historical median of 28.7. The estimated fair value CAGR (P/E method) is 5.7%.
ESSEX PROPERTY TRUST, INC. (ESS) operates in the Real Estate Investment Trusts industry, within the Real Estate sector.
ESSEX PROPERTY TRUST, INC. (ESS) reported annual revenue of $1.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
Essex Property Trust is a self-administered, self-managed REIT that owns and operates apartment communities predominantly along the West Coast of the United States. As of December 31, 2025, the company owned or had ownership interests in 259 operating apartment communities aggregating 63,077 apartment homes, along with preferred equity co-investments, loan investments, two commercial buildings, and a development pipeline. The company's business model centers on acquiring, developing, and redeveloping apartment communities in supply-constrained markets characterized by limited developable land, political growth barriers, and natural development limitations, while generating revenue through rental income and property management operations. Essex employs a research-driven investment approach focused on major metropolitan areas with populations exceeding one million, favorable rent-to-income ratios, strong job growth, and limited new housing supply, with particular emphasis on Northern California, Seattle, and Southern California markets. The company manages its communities through property operations, capital preservation, business planning, and development/redevelopment strategies designed to achieve above-average rental growth, tenant retention, and long-term asset appreciation. Essex maintains a diversified capital structure utilizing senior unsecured notes, term loans, revolving credit facilities, and an equity distribution program to fund acquisitions, development projects, and debt repayment.
【West Coast supply constraints supporting growth】 Management expects 2026 to deliver solid blended rent growth comparable to 2025 levels, supported by a meaningful reduction in new housing supply across West Coast markets and continued strength in Northern California driven by technology sector expansion and favorable migration trends. The company anticipates steady fundamentals with employment trends remaining cautious but stable, positioning Essex markets to outperform the U.S. average as new housing supply is forecast to decline by approximately 20% year-over-year. While global uncertainty and measured hiring present downside risks, management sees a path to stronger performance if hiring trends improve modestly, noting that historically low levels of new housing supply could amplify the impact of even modest demand improvements. The company expects 2026 to be the final year of structured finance-related earnings headwinds as the portfolio continues to shrink, with redemption proceeds being strategically redeployed into higher-growth acquisitions in Northern California.
| Metric | Target | Period |
|---|---|---|
| Same-property revenue growth | 2.4% | FY2026 |
| Blended lease rate growth | 2.5% | FY2026 |
| Same-property expense growth | 3% | FY2026 |
| Same-property NOI growth | 2.1% | FY2026 |
| Core FFO per share growth | flat | FY2026 |
| New housing supply decline | approximately 20% | FY2026 |
| Controllable expense growth | around 2% | FY2026 |
| Insurance cost decline | around 5% | FY2026 |
Same-property revenue growth (FY2026): “The components of our full-year same property revenue midpoint of 2.4% is outlined on the chart on page S-16.1 of the supplemental.”
Blended lease rate growth (FY2026): “Second, our guidance assumes blended lease rate growth of 2.5% at the midpoint.”
Same-property expense growth (FY2026): “We forecast 3% same property expense growth at the midpoint, which is the lowest rate of expense growth we have seen in several years.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.9B | 1.9B | 1.8B | 1.7B | 1.6B | 1.4B |
| Net Income | 573M | 670M | 742M | 406M | 408M | 489M |
| EPS | $8.89 | $10.40 | $11.54 | $6.32 | $6.27 | $7.51 |
| Free Cash Flow | 592M | 243M | 128M | 955M | 812M | 752M |
| ROIC | 6.5% | 14.2% | 12.4% | 7.2% | 5.4% | 8.0% |
| Gross Margin | 70.1% | 37.7% | 37.3% | 37.3% | 48.8% | 44.6% |
| Debt/Equity | 1.26 | 0.21 | 0.13 | 0.11 | 0.94 | 0.16 |
| Dividends/Share | $10.30 | $10.28 | $9.80 | $9.24 | $8.80 | $8.36 |
| Operating Income | 797M | 899M | 703M | 584M | 595M | 530M |
| Operating Margin | 41.8% | 47.6% | 39.6% | 35.0% | 37.0% | 36.8% |
| ROE | 10.5% | 12.1% | 13.5% | 7.3% | 7.1% | 8.1% |
| Shares Outstanding | 64M | 64M | 64M | 64M | 65M | 65M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 971M | 1.2B | 1.3B | 1.4B | 1.4B | 1.5B | 1.5B | 1.4B | 1.6B | 1.7B | 1.8B | 1.9B | 1.9B |
| Gross Margin | 24.2% | 22.5% | 31.7% | 31.2% | 49.0% | 51.8% | 47.6% | 44.6% | 48.8% | 37.3% | 37.3% | 37.7% | 70.1% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 41M | 40M | 41M | 41M | 53M | 54M | 65M | 52M | 57M | 63M | 99M | 72M | 76M |
| EBIT | 202M | 331M | 421M | 473M | 512M | 481M | 491M | 530M | 595M | 584M | 703M | 899M | 797M |
| Op. Margin | 20.8% | 27.7% | 32.5% | 34.7% | 36.6% | 32.9% | 32.9% | 36.8% | 37.0% | 35.0% | 39.6% | 47.6% | 41.8% |
| Net Income | 117M | 227M | 411M | 433M | 390M | 439M | 569M | 489M | 408M | 406M | 742M | 670M | 573M |
| Net Margin | 12.0% | 19.0% | 31.8% | 31.8% | 27.9% | 30.1% | 38.0% | 33.9% | 25.4% | 24.3% | 41.8% | 35.5% | 30.0% |
| Non-Recurring | 0 | 0 | 5.7M | 1.9M | 737K | 8.4M | 4.0M | 3.4M | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 3.4% | 4.0% | 5.1% | 5.7% | 6.3% | 6.5% | 7.2% | 8.0% | 5.4% | 7.2% | 12.4% | 14.2% | 6.5% |
| ROE | 3.0% | 3.7% | 6.6% | 6.9% | 6.2% | 7.0% | 9.3% | 8.1% | 7.1% | 7.3% | 13.5% | 12.1% | 10.5% |
| ROA | 1.4% | 1.9% | 3.4% | 3.5% | 3.1% | 3.5% | 4.4% | 3.8% | 3.3% | 3.3% | 5.9% | 5.1% | 4.4% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 493M | 618M | 717M | 770M | 827M | 919M | 803M | 905M | 976M | 980M | 1.1B | 1.1B | 1.1B |
| Free Cash Flow | 412M | 519M | 401M | 563M | 811M | 785M | 343M | 752M | 812M | 955M | 128M | 243M | 592M |
| Owner Earnings | 109M | 139M | 265M | 291M | 340M | 428M | 269M | 378M | 429M | 424M | 481M | 457M | 459M |
| CapEx | 81M | 99M | 316M | 206M | 15M | 134M | 460M | 153M | 163M | 25M | 940M | 832M | 489M |
| Maint. CapEx | 375M | 473M | 442M | 469M | 480M | 484M | 525M | 520M | 539M | 548M | 580M | 608M | 611M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 360M | 224M | 0 |
| D&A | 375M | 473M | 442M | 469M | 480M | 484M | 525M | 520M | 539M | 548M | 580M | 608M | 611M |
| CapEx/OCF | 16.0% | 9.3% | 8.4% | 9.5% | 9.9% | 11.1% | 11.2% | 13.4% | 16.7% | 14.3% | 12.8% | 13.1% | 45.2% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 261M | 367M | 411M | 451M | 484M | 508M | 536M | 543M | 566M | 587M | 620M | 654M | 662M |
| Dividend Yield | 3.7% | 3.6% | 3.9% | 3.7% | 3.9% | 3.3% | 4.1% | 3.2% | 3.5% | 4.5% | 3.8% | 3.8% | 3.5% |
| Share Buybacks | 0 | 0 | 1.0M | 0 | 51M | 57M | 269M | 9.2M | 190M | 96M | 0 | 0 | 0 |
| Buyback Yield | N/A | N/A | 0.0% | N/A | 0.4% | 0.4% | 2.1% | 0.0% | 1.6% | 0.6% | N/A | N/A | 0.0% |
| Stock-Based Comp | 8.7M | 6.1M | 9.8M | 9.3M | 7.1M | 7.0M | 8.2M | 7.3M | 7.2M | 8.0M | 7.2M | 9.6M | 10M |
| Debt Repayment | 1.8B | 262M | 532M | 561M | 230M | 1.0B | 916M | 1.1B | 65M | 302M | 403M | 809M | 809M |
| Balance Sheet | |||||||||||||
| Net Debt | 2.4B | 2.1B | 2.1B | 2.0B | 1.5B | 894M | 486M | 740M | 5.2B | -194M | 556M | 1.0B | 6.8B |
| Cash & Equiv. | 26M | 30M | 65M | 45M | 134M | 70M | 74M | 48M | 33M | 392M | 67M | 76M | 48M |
| Long-Term Debt | 2.2B | 2.2B | 2.2B | 2.0B | 1.8B | 991M | 644M | 639M | 5.3B | 598M | 555M | 1.1B | 6.8B |
| Debt/Equity | 0.41 | 0.36 | 0.37 | 0.35 | 0.29 | 0.17 | 0.11 | 0.16 | 0.94 | 0.11 | 0.13 | 0.21 | 1.26 |
| Interest Coverage | 1.2 | 1.6 | 1.9 | 2.1 | 2.3 | 2.2 | 2.2 | 2.6 | 2.9 | 2.7 | 3.0 | 3.5 | 3.1 |
| Equity | 6.0B | 6.2B | 6.2B | 6.3B | 6.3B | 6.2B | 6.0B | 6.0B | 5.7B | 5.4B | 5.5B | 5.5B | 5.4B |
| Total Assets | 11.5B | 12.0B | 12.2B | 12.5B | 12.4B | 12.7B | 12.9B | 13.0B | 12.4B | 12.4B | 12.9B | 13.2B | 13.1B |
| Total Liabilities | 5.4B | 5.6B | 5.9B | 6.1B | 6.0B | 6.3B | 6.7B | 6.8B | 6.5B | 6.7B | 7.2B | 7.4B | 7.5B |
| Intangibles | 48M | 2.9M | 1.4M | 400K | 100K | 1.2M | 4.7M | 8.9M | 7.4M | 6.1M | 7.7M | 7.5M | 7.5M |
| Retained Earnings | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 255M |
| Per Share Data | |||||||||||||
| EPS | 2.06 | 3.49 | 6.27 | 6.57 | 5.90 | 6.66 | 8.69 | 7.51 | 6.27 | 6.32 | 11.54 | 10.40 | 8.89 |
| Owner EPS | 1.93 | 2.14 | 4.05 | 4.42 | 5.13 | 6.49 | 4.12 | 5.81 | 6.59 | 6.60 | 7.48 | 7.10 | 7.13 |
| Book Value | 106.17 | 95.96 | 94.44 | 95.24 | 94.77 | 94.31 | 91.66 | 92.13 | 87.78 | 84.45 | 86.17 | 86.06 | 84.52 |
| Cash Flow/Share | 8.70 | 9.51 | 10.93 | 11.68 | 12.50 | 13.93 | 12.27 | 13.92 | 14.98 | 15.26 | 16.63 | 16.69 | 18.41 |
| Dividends/Share | 4.59 | 5.65 | 6.40 | 7.00 | 7.44 | 7.80 | 8.31 | 8.36 | 8.80 | 9.24 | 9.80 | 10.28 | 10.30 |
| Shares Out. | 56.7M | 65.0M | 65.6M | 65.9M | 66.1M | 66.0M | 65.5M | 65.1M | 65.1M | 64.2M | 64.3M | 64.4M | 64.3M |
| Valuation | |||||||||||||
| P/E Ratio | 71.7 | 49.4 | 26.9 | 28.0 | 32.6 | 36.1 | 22.8 | 39.9 | 29.4 | 36.8 | 23.5 | 25.0 | 33.0 |
| P/FCF | 20.3 | 21.6 | 27.6 | 21.5 | 15.7 | 20.2 | 37.9 | 25.9 | 14.8 | 15.6 | 136.6 | 68.9 | 31.9 |
| EV/EBIT | 55.5 | 42.7 | 33.8 | 34.9 | 31.6 | 42.6 | 37.4 | 47.0 | 29.1 | 33.3 | 32.6 | 25.1 | 32.2 |
| Price/Book | 1.4 | 1.8 | 1.8 | 1.9 | 2.0 | 2.6 | 2.2 | 3.3 | 2.1 | 2.8 | 3.2 | 3.0 | 3.5 |
| Price/Sales | 7.3 | 8.7 | 8.2 | 9.0 | 8.8 | 10.7 | 8.7 | 11.6 | 10.0 | 7.8 | 9.2 | 9.2 | 9.9 |
| FCF Yield | 4.9% | 4.6% | 3.6% | 4.6% | 6.4% | 4.9% | 2.6% | 3.9% | 6.8% | 6.4% | 0.7% | 1.5% | 3.1% |
| Market Cap | 8.4B | 11.2B | 11.1B | 12.1B | 12.7B | 15.9B | 13.0B | 19.5B | 12.0B | 14.9B | 17.5B | 16.7B | 18.9B |
| Avg. Price | 125.08 | 159.05 | 161.61 | 186.33 | 185.80 | 236.55 | 199.86 | 257.47 | 246.01 | 202.38 | 255.08 | 268.88 | 293.46 |
| Year-End Price | 147.73 | 172.58 | 168.75 | 183.84 | 192.28 | 240.64 | 198.15 | 299.45 | 184.58 | 232.72 | 271.73 | 259.59 | 293.46 |
ESSEX PROPERTY TRUST, INC. passes 3 of 9 quality checks, indicating weak fundamentals.
ESSEX PROPERTY TRUST, INC. trades at 28.2x trailing earnings, compared to its 15-year median P/E of 28.7x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 20.3x vs a median of 21.5x. The company's 5-year average ROIC is 9.5% with a gross margin of 41.1%. Total shareholder yield (dividends) is 3.5%. At current prices, the estimated annualized return to fair value is +3.3%.
ESSEX PROPERTY TRUST, INC. (ESS) has a net profit margin of 35.5%. This is a strong margin indicating high profitability.
ESSEX PROPERTY TRUST, INC. (ESS) generated $243 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
ESSEX PROPERTY TRUST, INC. (ESS) has a debt-to-equity ratio of 0.21. This indicates a conservatively financed balance sheet.
ESSEX PROPERTY TRUST, INC. (ESS) reported earnings per share (EPS) of $10.40 in its most recent fiscal year.
ESSEX PROPERTY TRUST, INC. (ESS) has a return on equity (ROE) of 12.1%. This indicates moderate shareholder returns.
ESSEX PROPERTY TRUST, INC. (ESS) has a 5-year average gross margin of 41.1%. This indicates decent pricing power.
The Ledger Terminal provides 18 years of financial data for ESSEX PROPERTY TRUST, INC. (ESS), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
ESSEX PROPERTY TRUST, INC. (ESS) has a book value per share of $86.06, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects 2026 to deliver solid blended rent growth comparable to 2025 levels, supported by a meaningful reduction in new housing supply across West Coast markets and continued strength in Northern California driven by technology sector expansion and favorable migration trends. The company anticipates steady fundamentals with employment trends remaining cautious but stable, positioning Essex markets to outperform the U.S. average as new housing supply is forecast to decline by approximately 20% year-over-year. While global uncertainty and measured hiring present downside risks, management sees a path to stronger performance if hiring trends improve modestly, noting that historically low levels of new housing supply could amplify the impact of even modest demand improvements. The company expects 2026 to be the final year of structured finance-related earnings headwinds as the portfolio continues to shrink, with redemption proceeds being strategically redeployed into higher-growth acquisitions in Northern California.
Based on recent SEC filings and earnings calls, ESSEX PROPERTY TRUST, INC. (ESS) has provided the following forward guidance: Same-property revenue growth: 2.4% (FY2026); Blended lease rate growth: 2.5% (FY2026); Same-property expense growth: 3% (FY2026); Same-property NOI growth: 2.1% (FY2026); Core FFO per share growth: flat (FY2026), plus 3 additional metrics.
Same-property NOI growth (FY2026): “As a result, same-property NOI growth is forecasted to increase 2.1% at the midpoint.”
Core FFO per share growth (FY2026): “As for 2026 Core FFO per share, we expect growth to be flat on a year-over-year basis.”
New housing supply decline (FY2026): “On the supply side, we forecast total new housing supply to decline by approximately 20% year-over-year.”
Controllable expense growth (FY2026): “First, we expect controllable expenses to increase around 2%, which reflects the continued benefits of our operating model.”
Insurance cost decline (FY2026): “Second, we expect insurance costs to be down around 5% on a year-over-year basis as the property insurance market has continued to improve over the past year.”
No recent press releases.