Highlights

  • Third quarter 2026 net income was $1.52 per diluted share, Total FFO was $3.98 and Core FFO was $4.00.
  • Essex raised its full-year 2026 Core FFO guidance to $16.10 - $16.22 per diluted share, with a $16.16 midpoint.
  • Same-property revenue and net operating income grew 3.0% and 3.1% compared with the third quarter of 2025.
  • In September 2026, Essex obtained a $275.0 million unsecured term loan priced at SOFR plus 0.80%, maturing in September 2029.

Essex Property Trust (NYSE:ESS) shares were trading at USD 263.33 on October 28, 2026, down 4.19%, with a relative volume at time of 4.07. The apartment REIT obtained a $275.0 million unsecured term loan in September 2026, acquired an Oakland community after quarter end, and announced third quarter 2026 results with raised full-year guidance on October 27, 2026.

Essex Property Trust, Inc. is a Maryland corporation headquartered in San Mateo, California. It is a fully integrated real estate investment trust that acquires, develops, redevelops and manages multifamily residential properties in selected West Coast markets. Essex has ownership interests in 255 apartment home communities comprising over 62,000 apartment homes, with an additional property in active development. Essex reports same-property results by county in Southern California, Northern California and the Seattle Metro.

Third Quarter 2026 Results

Net income per diluted share was $1.52 for the third quarter ended September 30, 2026, compared with $2.56 in the third quarter of 2025. The company attributed the decrease primarily to gains on sale of real estate and land recognized in the third quarter of 2025. For the nine months, net income per diluted share was $4.14, compared with $9.15.

Total FFO per diluted share was $3.98, compared with $4.03, and Core FFO per diluted share was $4.00, compared with $3.97. Nine-month Core FFO was $12.15 per diluted share, compared with $11.96. Essex said third quarter Core FFO was above the midpoint of its guidance range by $0.01 per diluted share.

Rental and other property revenues were $490,346 thousand, compared with $470,942 thousand. Same-property revenue and net operating income grew 3.0% and 3.1%, respectively, compared with the third quarter of 2025. Essex said same-property revenue improved by 1.0% sequentially.

Investments, Balance Sheet and Capital

In August 2026, Essex sold a 76-unit Seattle community for a contract price of $30.0 million. A joint venture in which it owned a 58% interest sold a 268-unit San Jose community for a contract price of $122.3 million. Wesco VII, a joint venture in which Essex owns a 50% interest, originated two preferred equity investments totaling $36.2 million at an initial preferred return of 11.5%.

After quarter end, Essex acquired a 378-unit community built in 2024 in Oakland, California, following the liquidation of its $64.2 million subordinated loan interest and payoff of the associated $92.3 million senior mortgage. Essex has not accrued income on the investment since the third quarter of 2025 and will consolidate the community in the fourth quarter of 2026.

The $275.0 million unsecured term loan is scheduled to mature in September 2029 with two one-year extension options. In the third quarter, Essex received net cash proceeds of $16.4 million from settling forward sale agreements by issuing 52,600 shares at a weighted average price of $311.13 per share.

Essex did not repurchase shares in the third quarter. Year to date it repurchased 254,001 shares for $61.9 million, and $500.0 million of repurchase authority remained at September 30, 2026. Liquidity was over $1.7 billion.

Full-Year and Fourth Quarter Guidance

Essex revised its full-year 2026 guidance per diluted share. Net income is expected at $5.62 - $5.74, compared with a previous range of $5.47 - $5.69. Total FFO is expected at $15.42 - $15.54, and Core FFO at $16.10 - $16.22, compared with a previous $16.03 - $16.25.

Fourth quarter 2026 Core FFO is expected at $3.95 - $4.07 per diluted share, with a $4.01 midpoint. Same-property guidance for 2026 is revenue growth of 2.8% to 3.0%, operating expense growth of 2.6% to 2.9%, and net operating income growth of 2.8% to 3.2%, based on 52,059 apartment homes on a cash basis.